Licensee inventory liquidation

Definition

The thirty-day window to move stock to another licensee once the seller's approval ends.

Why It Matters

When an approval terminates, the former holder has thirty days to liquidate the inventory by selling or otherwise disposing of the firearms to a licensed importer, manufacturer or dealer. If the buyer's own approval has not issued inside that window, the stock has to go to somebody who holds one, and the buyer either repurchases it later or does without it. That is why the application date, the closing date and the seller's termination have to be arranged around each other before anything is signed.