10Restriction on possession of prohibited firearms, prohibited magazines, pistols, restricted weapons, and pistol carbine conversion kits

1. A licensed dealer may not take an arms item that is a prohibited firearm, prohibited magazine, pistol, restricted weapon, or pistol carbine conversion kit into their possession for the purpose of carrying on a dealer activity unless the licensed dealer—

2. is the holder of a dealer’s licence that—
   1. specifies that the dealer may carry on that activity in respect of a prohibited firearm, prohibited magazine, pistol, restricted weapon, or pistol carbine conversion kit; and
   2. bears an appropriate endorsement made under section 30 or 30B; and
3. either—
   1. obtains the arms item under—
      1. a permit to import issued under section 18 or 18AA; or
      2. a permit to possess issued under section 35, 35A, or 35AAA; or
   2. manufactures it with the written approval of the Commissioner under section 6B(2).

4. A licensed dealer may not take a prohibited part into their possession for the purpose of carrying on a dealer activity unless the dealer obtains it—

5. from a holder of a firearms licence that bears an endorsement made under section 30B permitting the holder to possess a prohibited firearm; or
6. under a permit issued under section 18; or
7. from another licensed dealer whose dealer’s licence bears an endorsement made under section 30B permitting the dealer to possess a prohibited firearm.

8. A person commits an offence and is liable on conviction to imprisonment for a term not exceeding 6 months, or to a fine not exceeding $10,000, if the person, without reasonable excuse, contravenes subsection (1) or (2).

9. Subsection (3) is subject to section 59A(1).