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Thread: Selling reloads

  1. #1
    Boolit Master
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    Selling reloads

    Is there some kind of license needed to sell reloaded ammo commercially????
    I kind of remember seeing something in the batf rules about it.

  2. #2
    Boolit Buddy am44mag's Avatar
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    Quote Originally Posted by abunaitoo View Post
    Is there some kind of license needed to sell reloaded ammo commercially????
    I kind of remember seeing something in the batf rules about it.
    I think you do, but more than that you need really good liability insurance.

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  3. #3
    You'll need ffl#6 liscense. Plus the insurance. The liscense is only like $20 for three years.

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  4. #4
    I'm still trying to find the application for that liscense on the ffl Web page.

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  5. #5
    Almost forgot. There's also a tax you have to pay unless you can get it waved. I forget what the tax is at the moment.

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  6. #6
    Boolit Master
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    Then there's local and state business licenses, collecting sales taxes, etc. GW
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    Or walk with Kings, nor lose the common touch,
    Yours is the earth and everything that's in it,
    And, which is more, you'll be a man my son!" R. Kipling

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  7. #7
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    Itar is $2250 a year iirc. Does not matter you have no intention to ever export a single rd.
    1 millon dollar liability Insurance policy min.
    06 FFL license. Ect ect.
    Costs are the reason you see brands come and go so quickly TRYING to sell reloads.
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  8. #8
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    I looked into it once and after factoring in the insurance it would have to be a full time job to turn any kind of profit.

  9. #9
    Quote Originally Posted by Smoke4320 View Post
    Itar is $2250 a year iirc. Does not matter you have no intention to ever export a single rd.
    1 millon dollar liability Insurance policy min.
    06 FFL license. Ect ect.
    Costs are the reason you see brands come and go so quickly TRYING to sell reloads.
    Yep. That was the tax.

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  10. #10
    Boolit Master
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    I would think that getting the licenses - Fed, State, Local, etc. would be the "easy" part - the hard part is going to be finding an insurance company that will write you a liability policy. Perhaps there are companies that are NRA friendly who writ such a policy - you'd have to start doing your homework on that.

    Another consideration is "where" you are going to have your "operation" - if it is a "home industry" - I doubt if you owe on your property that the bank and the insurer of your place would be too happy - regardless of how safe you are. Even if you were to do it in a building you own, if the company who has your fire/liability on your building finds out, you'll probably be finding the policy canceled. Then you would be forced to "self insure".

    Many years ago, I owned a custom woodworking/millwork shop. I owned the building, had no employees, kept the premises immaculately clean, and my biggest "headache" was insurance. First - fire insurance. I was constantly being inspected even though I had never had a claim. Their biggest concern was the sawdust, any finishes I had and applied on the premises. As soon as I had done something to satisfy them, they would come back and find something wrong. I remember that I had just installed a new dust collection system and was told it was fine. Two months later, I was inspected and told it did not meet their requirements. I told them - "then give me the specs on what you require". I was told they couldn't do that as then if I followed them and there was a problem, they would be liable. Really? As long as I did the work in the shop, my policy covered my liability. BUT, as soon as they found out that I went out on the job and installed what I produced, I had to have another "rider" for "liability on the job". AND, even though there never was a claim, the premium each year kept going up and up. As soon as I was able to save enough money to possibly buy a new piece of equipment to help expand my business, the insurance companies would come along and suck it all up.

    "Self-employment" is not all that it is cracked up to be. And don't forget there are other expenses as well. If you go in to it full time, unless your wife is employed and you are on her policy, you'll be paying for you own health insurance, etc. I have been self-employed for the majority of my life. I applaud you wanting to get in to something such as you mention, but before you make the "leap", make sure you have all your ducks in a row and a very good business plan . . . and enough money put away to carry you through the first couple of years as you'll be struggling to break even if you are lucky. I wish you the best of luck in whatever you decide.

  11. #11
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    Not worth it, IMO. But everyone has their own ideas on that...

    I would rather have fun handloading & shooting firearms myself, than to make it a "job". Let alone have to jump thru hoops with the laws, taxes, insurance/liability BS that the bureaucracy wants someone to go thru and the $$ in overhead that would pile up.

    "Spend the $$ on supplies for your own use instead, if you want to do more handloading.", would be my advice to anyone considering it now a days.

    G'Luck!, if you decide to try it, but my money is on that you would find it to be more hassle than it is worth.
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  12. #12
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    Over thirty years ago my friend tried selling reloads. It turned into a nightmare. The feds would be banging on his door at six in the morning wanting to inspect his shop. It didn't take long for him to throw in the towel.
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  13. #13
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    I know a guy that sells reloads. Besides the taxes and fees mentioned above, I believe he has to pay 11 cents a round for manufacturing (?) tax.

    To get around that, he has his customers provide their own brass. Then he’s providing a service rather than manufacturing.
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  14. #14
    Boolit Master
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    It's not me. I would never do it. To much risk.
    We have lots of dummies here.
    There is a shop that is advertising reloaded ammo.

    "I know a guy that sells reloads. Besides the taxes and fees mentioned above, I believe he has to pay 11 cents a round for manufacturing (?) tax.
    To get around that, he has his customers provide their own brass. Then he’s providing a service rather than manufacturing."

    I think this is what he's doing. too

  15. #15
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    Quote Originally Posted by Smoke4320 View Post
    Itar is $2250 a year iirc. Does not matter you have no intention to ever export a single rd.
    1 millon dollar liability Insurance policy min.
    06 FFL license. Ect ect.
    Costs are the reason you see brands come and go so quickly TRYING to sell reloads.
    I do believe ITAR has been changed, may want to research that...

  16. #16
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    ITAR is not the tax.

    There is a tax on ammunition and firearms made by the Pittsman/Robertson act. 10% on some 11% on the rest. Payable quarterly.

    An 07 or 06 FFL pays it on the goods they make unless the goods are shipped to a government organization. That is why some ammo boxes say military or law enforcement only on them as the tax has not been paid on it to sell it to non government.

  17. #17
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    Quote Originally Posted by MaryB View Post
    I do believe ITAR has been changed, may want to research that...
    Seems to be the case. Done especially for gunsmiths and non-military manufacturers. No ITAR fee and enforcement by BATF and Commerce Department. Just need an 06 FFL. Not sure when it goes into effect.
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  18. #18
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    Quote Originally Posted by Geezer in NH View Post
    ITAR is not the tax.

    There is a tax on ammunition and firearms made by the Pittsman/Robertson act. 10% on some 11% on the rest. Payable quarterly.

    An 07 or 06 FFL pays it on the goods they make unless the goods are shipped to a government organization. That is why some ammo boxes say military or law enforcement only on them as the tax has not been paid on it to sell it to non government.
    Pittman/Robinson is only on new production. That is the getaround when someone supplies their own brass, it's not new production. BTW, the Pittman-Robinson Act was demanded by sportsman - we insisted on taxing ourselves. This money supports your state wildlife division, public hunting grounds, public firearms safety training, wildlife research, and a lot more. One of the better deals in the entire history of federal law in my opinion.
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