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Old November 28, 2020, 09:07 AM   #1
Chaparral
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Is there a law prohibiting the sell of reloads?

I see guys at gunshows all the time selling reloads, guys set up at flea markets selling, garage sales, etc. If a person wanted to make some bullets during this bullet shortage and sell some is there a law prohibiting this?
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Old November 28, 2020, 11:02 AM   #2
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A FFL is required to produce and sell loaded cartridges. I'm not aware of any legal restrictions to sell bullets.

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Old November 28, 2020, 11:07 AM   #3
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https://www.atf.gov/resource-center/...-licenses-ffls
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Old November 28, 2020, 03:44 PM   #4
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Hey I appreciate both you guys. I did not know this. Thank you.
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Old November 30, 2020, 12:07 PM   #5
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In addition to the FFL requirements there is a considerable issue of liability insurance.

Bottom line: It might be practical to do it as a real business that generates enough volume to cover the costs, but not as a "I'll make some reloads and sell them to my friends" proposition.
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Old November 30, 2020, 12:23 PM   #6
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Quote:
A FFL is required to produce and sell loaded cartridges. I'm not aware of any legal restrictions to sell bullets.
The same licensing and tax requirements that apply to loaded ammunition also apply to components. Bullets, under the definition of ammunition used to regulate items subject to the excise tax, are ammunition on their own. It doesn't matter if they are not in a loaded cartridge.
Same for cartridge cases and primers.


Quote:
If a person wanted to make some bullets during this bullet shortage and sell some is there a law prohibiting this?
Cartridge.
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Old November 30, 2020, 01:08 PM   #7
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Quote:
Originally Posted by FrankenMauser
The same licensing and tax requirements that apply to loaded ammunition also apply to components. Bullets, under the definition of ammunition used to regulate items subject to the excise tax, are ammunition on their own. It doesn't matter if they are not in a loaded cartridge.
Bullets may be subject to the excise tax (I don't know, I'm not a tax attorney) but you don't need an FFL to produce and sell bullets.
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Old November 30, 2020, 02:30 PM   #8
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Quote:
you don't need an FFL to produce and sell bullets.
You do need the required business licenses and permits to sell bullets (just the projectiles) Also local zoning and environmental laws apply.

Same as selling anything else.

"Manufacturing" loaded ammunition requires all that PLUS the Federal licenses, which are not exactly the same FFL as the one needed to run a gunshop.

If you are making ammunition, then you are a manufacturer and other requirements apply, including various taxes that are only applied at the manufacturer level.

There is a set of licenses to make the stuff, and another set to sell it as a business.

And, that's not even counting the various insurance needs that must be met...
The guy selling a few reloads at a gun show or flea market usually doesn't get busted, but COULD BE.

The guy doing it as a commercial business without ALL the needed licenses, WILL BE busted, particularly if he makes any money at it, and fails to give the govt their share.
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Old November 30, 2020, 04:29 PM   #9
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Quote:
Originally Posted by FrankenMauser
The same licensing and tax requirements that apply to loaded ammunition also apply to components.
Quote:
Originally Posted by 44 AMP
You do need the required business licenses and permits to sell bullets (just the projectiles)
I specifically said that you don't need an FFL to make and sell bullets (projectiles).

Since two people have now stated that just making bullets requires licenses and permits, for the enlightenment of Chaparral (the OP) and any other readers who may be contemplating the same thing -- please enumerate what licenses and permits are required to make and sell bullets. I'm sure it varies by state, and perhaps even by municipality -- for the life of me, I can't think of a single license or permit that I would require if I wanted to set up shop and make bullets to sell at gun shows or over the Internet. The same applies to cases -- not that I'm in any way capable of making them.
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Old November 30, 2020, 07:42 PM   #10
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https://johnpierceesq.com/do-i-need-...-cast-bullets/
Seems fairly specific....

Ditto Corbins:
http://www.corbins.com/business.htm "Licensing"
Class 6 license
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Old November 30, 2020, 08:37 PM   #11
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mehavey --

Thank you. I sit corrected.
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Old November 30, 2020, 10:08 PM   #12
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Further reading.
This is the definition of "ammunition" that matters in this context.
Manufacturing "ammunition" requires an FFL.
ATF, "Ammunition"
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Old November 30, 2020, 11:58 PM   #13
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Maybe you can make some extra money by charging someone to find their pet load for them? You make a lot of various loads with varying powder charges then shoot the person's gun for them with the ammo, have fun shooting the gun, and charge them for the ammo and the service. If they want custom ammo, at worse, they can start reloading for themselves or find a source from who knows where..
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Old December 1, 2020, 01:37 AM   #14
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Good link. Interesting that ammo manufacturers (including those just making bullets) must also pay the ITAR annual fee in addition to having an FFL.
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Old December 1, 2020, 08:04 PM   #15
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Does not seem to be a good business model at any level.

I think anyone considering this should contact an insurance company to see how much coverage would cost.

That should give you some understanding of what risk you are taking to make a few bucks.
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