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Originally Posted by Pahoo
...don't know why you couldn't sell it
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You must have a federal tax license to sell black powder. It's a BATFE regulation, and thus a federal offense if you do so. No loophole on amount either. In a recent thread on The Muzzleloader Forum a member published a written discourse he had had with BATFE in which he asked about selling a pound to a friend at a match who had forgotten his. Bottom line was that BATFE considered that 'being in the business' of selling black powder and thus a federal tax license was required. It did not matter whether the seller was making a profit or not, just the act of selling it without the license was a violation.
Many people have attempted to interpret the 'being in the business' statement as a loophole that allows straw sales of small amounts in a casual manner. However, the agent pointed out that BATFE considers any sale as 'being in the business' regardless of the circumstances. And they got the legal resources to make it stick.
Bottom line: no, you cannot sell, trade or barter black powder without a federal tax license ($300/year). You may give it away, or loan it in expectation of reimbursement in kind only.
Clubs or groups of individuals may make a group purchase, with each member paying for his share, and one member being the collection and distribution point, but the arrangement must be in place before the member makes the bulk purchase.