July 15, 2012, 09:52 PM | #1 |
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License to sell ammo?
I'm looking to provide a cartridge reloading service, sell precision handloads etc. on a small scale. Can anyone fill me in as to what FFL or special licensing I'll need?
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July 15, 2012, 10:27 PM | #2 |
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You have to get an FFL (I think it's a Type 07, as long as you're not planning on making armo-piercing ammo). That fee's pretty reasonable - I think it's something like $150 for three years.
You also have to register with ITAR, even if you're not going to be exporting ammo. The fee for that starts at $2250 per year. There's also a Federal Excise Tax of 11% on all the ammo you make. I *think* the only way to avoid this is if the customer provides the brass, and you reload *those exact same cartridges* and then sell them back to the customer. Then there's the biggie - insurance. I'll let others chime in on just how much you need, but I'd say that $1 million would be the bare minimum. You'll also have to deal with a lot of federal, state and local regulations regarding what quantities of components you can have on hand, how they have to be stored, etcetera. I don't know if commercial reloading can really be done on a small scale - it's always seemed like a "go big or go home" proposition to me. |
July 16, 2012, 07:50 AM | #3 |
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+1 for Scotts response.
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July 16, 2012, 10:50 AM | #4 |
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Ok, buzzkill. Thanks for the info. So much for that idea.
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July 16, 2012, 03:33 PM | #5 | |
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His solution was to open a small shop specializing in selling reloading supplies, ammo and some other stuff and offering free classes (if you bought from him) and classes with a small charge if not. Did pretty darn well for about 14 years.
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July 16, 2012, 05:10 PM | #6 |
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FWIW I believe(!) that a license is required to conduct business in making ammo, but is not necessarily required simply to sell a few handloads now and then. IOW it's similar to selling the occasional gun at your local gun show.
Example: "Hey buddy, I've noticed that those .308 handloads of yours shoot really well. Can you load 40 rounds for me? I'll give you some money to cover your costs." - OK "Can I buy 200 boxes to stock my gun store?" - NOT OK Mandatory Disclaimers:
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July 17, 2012, 12:19 AM | #7 | ||
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From what the OP wrote, it really looks like he was contemplating starting a business: That sound like a business to me.
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July 17, 2012, 12:46 AM | #8 | ||
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**The ATF classifies even cartridge casings and bullets as "ammunition". So, the license is required even to sell cast lead bullets. Quote:
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July 17, 2012, 04:50 AM | #9 | ||
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Quote:
I believe a vast majority of the GCA is a bit ridiculous. But I wouldn't manufacture ammunition for sale even if the law didn't require a license. Ammunition manufacturing exposes you to a great deal of liability (and other issues) and I'm not sure there is enough money in it to justify the hassle. |
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July 17, 2012, 08:10 AM | #10 | |
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There are two basic approaches becoming a manufacturer: 1. "Go big or go home" - the common choice (your choice) would be going home. 2. Create a business model that is sustainable with small quantities of premium ammunition. - again, the most common choice is to just forget about it, and not even try. There's no reason to less of anyone that isn't willing to try. It's just that some people are more willing to take the risks involved.
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