Selling Reloads?

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  • jcj54

    Marksman
    Rating - 0%
    0   0   0
    Aug 24, 2013
    269
    43
    NE
    ATF told me years ago that:
    An ammunition manufacturer's license is required if you reload for anyone other than yourself,
    You MUST collect 11% excise tax and submit it to the IRS under penalty of tax evasion if you fail to collect and submit it.
    I do not need that much government involvement in my life....
     

    Bratch1976

    Bratcher Sr competition shooter
    Rating - 100%
    1   0   0
    Mar 13, 2021
    57
    18
    Chesterton Indiana
    Gun show guys are taking advantage I bet.
    I would think most of the guys that are taking chances are the gun show guys. Most of the commercial reloaders and loaders get their licensing and do the proper thing. It’s the gun show guys and guys selling stuff secondhand that you have to watch out for I think. Plus in these times a lot of people are counterfeiting ammunition. There’s always a few bad apples. The shows are sketchy. deal with reputable people only to avoid risky ammo.
     

    tackdriver

    Sharpshooter
    Rating - 100%
    3   0   0
    Apr 20, 2010
    481
    93
    I looked into this 10 years ago or so, so my info is a little dated. To be legal, you need the right FFL, and deal with the tax issues like any business, as others have said. Beyond that though, it starts to depend on the political environment, and how much they want to harrass. I looked at this when Obama was President, and Hilary was the Sec. of State. If I recall, small yet legit ammo manufacturers were getting jammed up because they didn't register with the State Department! There was also a $2,000 fee to register.

    The logic was - International laws/treaties required manufacturers of arms and ammunition to be registered. ANY ammo could be sold or resold across the border, even if you only sold locally. Since your ammo may wind up in another country, you must register. Even if you complied with local federal laws, you violated international law (and whatever else they throw in). I don't know what became of the cases, and they may have been dismissed or won. However I'm pretty sure lawyers had to get paid, and the targets delt with some real stress. Even if they won the cases, they still got punished!

    Recently, my wife asked me about selling some reloads to a couple of her friends/clients. I have a few friends hinting around thet they would like to buy some reloads. In the current climate, I really want to help them out. In the current political condition, absolutely no way.

    TD
     

    sheepdog697

    Expert
    Rating - 100%
    25   0   0
    Sep 2, 2015
    1,289
    83
    Cedar Lake
    I wonder what kind of insurance you would have to carry to be in that business. It's probably not cheap.
    You definitely need an FFL. Just because it doesn’t stop billy bob doesn’t necessarily mean it’s smart to try to do it. The juice isn’t really worth the squeeze to do it illegally.

    I looked into commercial reloading as a side business. The insurance premiums are the barrier to entry for sure. I think minimum is around $2k per month.
     

    DadSmith

    Grandmaster
    Rating - 100%
    1   0   0
    Oct 21, 2018
    22,528
    113
    Ripley County
    You can legally give them as gifts but selling them iirc is ffl and I believe it cost $10 but I haven't looked into it just noticed it back when I was considering starting a gun shop.
     
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