Legalities of selling custom loads

[scalper]

I have a number of loads that I have worked up for various calibers that seem to have become fairly popular with some of my buddies at the range.

I was curious, does anyone know how difficult it is to sell custom loads? I am particularly interested in the legal ramifications. I know there are small mom-and-pop businesses that are doing this on the web, but I was unsure what type of paperwork, licensing, BATF approval, that is required. I am not opposed to doing these things, but for a small hobby oriented part time income, it may not be worth the trouble. On the other hand, if the ammunition side of things is highly unregulated, it might be a viable endeavor.

I don't particularly care about the business aspects of this - like profitability, marketing, since I am not looking at this as a major source of income. I am just interested in perhaps supplementing my income with something I already enjoy doing for myself.

 

[K3]

For starters, make sure you get lots of insurance...

 

[ReloaderFred]

You would need a class 6 Federal Firearms License (FFL), and as noted, lots of insurance. Unless you're going to do it for a living, it's really not worth the risk or investment.

Hope this helps.

Fred

 

[scalper]

Yep. Sounds like it is waaaaaaaay too much trouble. I guess I won't be launching "Good Ole Boy" ammunition after all.

I swear, these things make me more of a Libertarian every day with our "nanny" state lookin out for everyone's best interest.

 

[mallc]

Scalper

I have 25 years or regulatory management for a fortune 500 corporation. I hold a type 7 FFL, an Iowa CC, and am a certified range officer. Not everyone who takes up a firearm or loads a round ought to. There are waaaaaay too many "fire, aim, ready", guys out there NOT to have some kind of basic requirements for selling things that can kill people.

The fact that you know enough to ask says you'd that you would provide a safe product. Just don't make the mistake that everyone shares your smarts.

my $0.02.

Scott

 

[BigBlock]

Well, there are probably some qualifiers on the BATF requirements. For example, I can sell a box of ammo on an online auction site with no paperwork. Or I can sell it privately to anyone who wants to buy it.

The question really is, at what point does it become a full on business, because that's when you need the licensing.

 

[zxcvbob]

When you sell a single round that you loaded to the wrong person, it retroactively becomes a business.

That includes barter.

 

[Griz44]

An FFL is not required to sell ammunition. It IS required to manufacture and sell ammunition. That was one of the first things that the ATF agent asked me when I did my interview. If your business is soley to sell ammunition (and other goods) but not firearms, then they will not approve an FFL for you.

 

[ReloaderFred]

The Class 6 license is for the manufacture of ammunition. If you load it yourself, and then sell it, you become a manufacturer under BATF rules. Reloaders are exempt from licensing, if they use the product themselves.

Hope this helps.

Fred

 

[kennedy]

product liability insurance is a must, I work for a grocery store chain and we will not buy locally grown produce unless the grower has insurance. If someone gets sick, he is liable. same with ammo

 

[nicholst55]

And let's not forget that Uncle wants his 11% excise tax on that ammo, too.

 

[jeepmor]

It sounds like it's worth delving a little deeper into the details. But seeing folks like Fred chime in and state its not worth the investment illustrates to me that its an "all in" type of endeavor and drags you right out of the hobby into full on, full time business.

 

[evan price]

I've been there- not with reloading, but in the "Hobby got popular" vein, and when the hobby becomes a business you start to dislike your hobby.

Let's ignore the regulatory and insurance pitfalls.

If you are going to make this worth your time you will need a source of materials (Lead to cast into boolits or else bullets from another source), Brass (How many ranges do you get brass from?) and you're going to need powder & primers- but if you stock so much of either you need a powder magazine.
Like was mentioned above: This is not something to get into half-assed. If you are going to make this a go, figure on starting it off as a business from the beginning- that means, records, invoicing, office work, creating receipts, creating advertising, buying equipment... if you need to cast 10K bullets for an order forget the 20# Lee pot and 2-cavity moulds. Now you're talking Magma casting machines, a Star lubrisizer, Scharch brass prep machine, Dillon 1050 press with case and bullet feeders, maybe minimum...

Now you have a long day reloading to get that 10K done. And it's no longer, "I feel like making some ammo today.", it will be, "I *have* to make 10K ammo today." Now the hobby is a burden.


Not saying, don't do it, just be fully aware that this is what you want.

 

[ForneyRider]

I am thinking the license is only needed for completed ammunition.

What about selling cleaned/resized/primed brass?

Selling cast lead bullets etc.

Perhaps, you could sell a do it yourself kit.

Lee handloader, primed brass, bullets, and powder(individually wrapped amounts) might be cheaper than bulk ammo. heh!

 

[mallc]

Limits

I'll check the manual, but I believe that the limit would be prepped brass. Selling primed rounds is likely over the line.

Scott

 

[Floppy_D]

I've kicked around the idea myself, but I hate turning something I like into work. I reload to relax. When someone is harping on me about getting them their ammo and it happens to be my busy week, it kills the fun for me.

 

[Down South]

I don't know much about the selling of reloaded ammo but I've heard a couple times if you are reloading someone elses brass then there is no license required even if you charge for the reloads.

 

[evan price]

iirc you NEED a 06-FFL to manufacture bullets, or to sell reloaded ammo- including if you reload someone elses' components and charge for the service.

 

[Geno]

Since the answer has already been provided, I will simply make the observation that I'm not sure I would ever want to reload for pay. It seems that it would take all of the fun out of it. Add to that this sue-happy "culture" we live in, I know I wouldn't.

 

[Marlin 45 carbine]

"never shoot anyone else's reloads" from Sierra manual.

 

[dalepres]

Besides, while I am sure the OP's ammo is great and his buddies really do like it, I bet they like it even more that he reloaded it and they're not paying for it [Grin].

If he's not doing anything not easily discoverable by potential customers, he's entering a field with a lot of competition with deep pockets. Doesn't sound like a great business plan to me.

 

[dalepres]

I've kicked around the idea myself, but I hate turning something I like into work. I reload to relax.

That's a good point, Floppy. Just because a person is a great reloader, or a great gunsmith or a great anything, being in the business is something completely different. You also have to be a great bookkeeper, a great salesman, a great business manager, etc.

I made that mistake in the electronics business once. I was really good at what I did and I enjoyed it but I found out that not only did I not enjoy all the business and regulatory stuff, I wasn't very good at it either.

 

[Sunray]

Sell, give or trade one round that is fired out of a defective rifle that causes an injury or death and you're toast. Even if your handload wasn't the cause, it'll cost you thousands to prove it. Liability insurance is expensive too.