Selling Reloads

[mrammodump]

Hey guys,
I saw a previous post that told a little about selling shotshells you reload, but I really can't get around the complications. I would like to start reloading with a MEC 9000GN and make alot of shotshells, and I thought that it would be great to sell them. Hopefully, someone knows more than me about the legal, and other issues. Thanks,
mrammodump

[69Mach1]

Not legal. You need to have the proper license/insurance to do so.

[chim-chim7]

You need a 06 and 07 FFL license as well as insurance. Plus you need to pay a fee every year.

[chim-chim7]

Minimum startup for a small reloading company is about $10,000. You can do it for cheaper but your expected to turn a profit with those licenses. You need to sell lots of ammo to make it even worth it.

[five.five-six]

yes, the gubment gets mad if they get pinched for their vig on the profit

[r3dn3ck]

remember the old addage, you don't make any money in hardware. You'll have to find an efficiency that neither reloading or bulk purchases can defeat to have a value proposition or you'll have to innovate and patent protect something really compelling. It's a rough field to play in.

[theduece]

You do not need both a 06 and an 07. You do need either or though. An 06 is a ammo manufacturer, 07 is weapons/ammo manufacture.

Is true that it will be VERY difficult to turn profits out of one machine. Now it is possible though, I would not recommend doing common calibers though. Or common types that are readily available. Such as birdshot or 12/20guage.

An 06 license is cheaper, but do not forget to add in liabillity insurance.

[freonr22]

You need Itar also

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.....

As a manufacturer, you also need to register with ITAR and pay $2250 per year.

[mrammodump]

How much is the insurance? Is it required if I am reloading at an industrial building? Because that is where I think I will try to reload.

[chim-chim7]

Check NRA insurance. You also need to pay ITAR another approx $2,500 a year last time I checked.

[Mssr. Eleganté]

How much is the insurance? Is it required if I am reloading at an industrial building? Because that is where I think I will try to reload.

The liability insurance is mostly to cover lawsuits against you when somebody is injured or killed when their gun blows up while firing your ammo. So the type of building you are reloading in won't matter. The post quoted above says it's around $7000 per year.