Selling reloaded ammo

[BajaJames83]

Would there be any legal issues in selling reloaded ammunition? I've been reloading for a while and people always ask me if I'd sell any. I haven't ever thought about it. Just wondering what the legalities with this would be...

[joelogic]

Legal is done correctly.

You need an 06 (ammunition mfg) type FFL to make ammo for sale. There's some additional paperwork to import components/live ammo as well.
Only 30.00 for three years. You have to submit full fingerprint cards and pass the std FBI background check.
You'll also need a CA seller's permit (resale license) Sales taxes are paid quarterly to the CA Franchise Tax Board.
May or may not need to have a commercial business address and business license, depends on your local ordinances. May be some restrictions/requirements on sale records (like in L.A.) and storage of components/live ammo as well.
BATFE agent will visit and interview you and check out the production site.

Liability insurance is expensive (about 7K/yr) and usually required by retail sellers before they'll carry your product on their shelves. Not required otherwise, but still a good idea.

If you mfg. or remanufacture ammo, an 11% Federal excise tax is applied. as well as CA sales tax if sold withing the state.
If you reload a customer's brass, then the FET is not applied, but of course CA sales tax still is for in-state sales.

Federal taxes are generally collected quarterly and managed by the TTB:

http://www.ttb.gov/forms/f530026.pdf

Shipping must be via common carrier like FEDEX or UPS. A separate hazmat certification is needed to ship powder or primers by themselves. Primed brass or loaded ammo IS NOT considered hazmat, only ORM-D. Shipping carton must be labeled accordingly and boxes must meet strength requirements.

There's a lot of paperwork.....

[BajaJames83]

Not worth it for the amount I would be reloading and willing to sell. Ill just keep it for me

[gunboat]

Not only is it a problem with licensing, the legal liabilites can prove disastrous.

[Fishslayer]

I wouldn't do it.

A. If my ammo blew up somebody's gun I would feel obligated to replace it. Can't afford that.

B. If somebody was injured by my ammo I would feel terrible, and not just because they would end up owning my house, whicj they would.

C. I let people shoot my ammo in my guns all the time. No problem there.

[joelogic]

I don't even like to let people shoot my guns with my reloads, still a liability.

[Peter W Bush]

Heck, I barely let my own brother shoot my reloads. I wouldn't risk it.

[BajaJames83]

just for my shooting it is then

[ireload]

I've looked into having as a side business. As shown by Joelogic, plus the funds needed to purchase more components, insurance (liability), etc., I have to crank out thousands and thousands of rounds to sell just to make a meager profit. Bottom line, not worth the trouble for me. I have to purchase extra equipment to speed up the reloading process. Pay back is going to take a while.

[EBR Works]

Yep, to sell your reloaded ammo you must be licensed as either an FFL06 or FFL07. You would also have to collect 11% Federal Excise Tax on the sale price of your ammo. You'll need a hefty insurance policy as well.

[freonr22]

Itar also I believe

[Triple R Munitions]

making ammo is the easy part...making money is another...


R

[Lead Waster]

Yep, to sell your reloaded ammo you must be licensed as either an FFL06 or FFL07. You would also have to collect 11% Federal Excise Tax on the sale price of your ammo. You'll need a hefty insurance policy as well.

Can you trade a box of ammo to a friend for a few beers or lunch? Or any ammo changing hands at all needs all that mumbo jumbo?

I wouldn't do it for the liability issues mentioned.

There was some guy, who's name I can't remember, tried to start a small ammo company and it wasn't worth it for him. Plus he took money for orders he couldn't fill. It's hard to make a profit when one of your biggest competitors is Walmart.

I think everyone who starts reloading eventually has that spark of an idea "Hey... I could SELL these!" But realistically you have to be able to really crank out volume and really have machines that can do it. Sure you have a Dillon 1050 ... it's not enough.

Search around the forums for stories!

[choprzrul]

If you are going to sell it cheap, you're going to have to stack it deep to make any money at it. If you can't picture yourself producing ammo by the truck load, don't even think about it.

Massive volune is the only way.

.

[EBR Works]

.. or you can produce specialty cartridges that sell for bigger margins.

I have thought about producing ammo, but selling guns is more fun!