Correct. The State Department isn't approving commodity jurisdictions any longer. Hillary messed that up for us. I had one for a few years, but it got rejected for renewal. To put it plainly, pony up the cash as it's a cost of doing business. It's $2,250 per year but if you're in business and it's hurting your bottom line, you're really just a hobby.
They aren't. The 06 FFL only covers ammunition and ammunition components for firearms. The ATF does not recognize blackpowder/muzzleloading firearms as firearms. You can make muzzleloading bullets without an FFL or ITAR registration. Just check your state and local laws.
Article 1, Section 8:
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;