Selling Reloads as Range Ammo, Legals etc.

This is a discussion on Selling Reloads as Range Ammo, Legals etc. within the Defensive Ammunition & Ballistics forums, part of the Defensive Carry Discussions category; Just thinking about getting into reloading bc of ammo costs etc. If I overproduce ammo and I want to sell it to other people at ...

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Thread: Selling Reloads as Range Ammo, Legals etc.

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    Member Array markp's Avatar
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    Selling Reloads as Range Ammo, Legals etc.

    Just thinking about getting into reloading bc of ammo costs etc. If I overproduce ammo and I want to sell it to other people at a range etc what are the rules and regs. I would guess that you have to have an FFL.

    Looks like if I buy some good reloading equipment it could pay for itself fairly quickly, and even faster if I sold some ammo.

    I'm not trying to sell ammo as a business or anything just something to offset my shooting.

    YES I did do a search but I didn't come up with anything specific.

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    Senior Member Array blueyedevil's Avatar
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    You don't need an FFL, however if your rounds blow up in someone else's gun you may be held liable. You might be able to get around it by having any "customers" sign a release of somekind.

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    Member Array 1911packer's Avatar
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    I have access to commercially produced reloads at a good price. They have a long track record and use automated equipment that provides for strict quality control. They even buy back my empties.

    Why would I want to purchase ammo from someone who has been doing it for a month and wants me to sign a release? Also could you make a profit selling .45ACP 230gr FMJ at $25.00/100 and give me $8.00 for the brass?

    Not trying to be harsh, just pointing out the realities of the market.

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    Ex Member Array Joe R's Avatar
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    How could you ever overproduce your own reloads?

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    Senior Member Array Shizzlemah's Avatar
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    Pretty sure you do require a FFL for commercial ammo manufacture. Cheap one though, only $30.

    But, uh, liability would be obscene.... Just for kicks, call your insurance agent and tell them you want to sell ammo. Hope you are sitting down, possibly with an ambulance crew at your side :-)

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    VIP Member Array Supertac45's Avatar
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    Senior Member Array coffeecup's Avatar
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    Perhaps I am mistaken, but I believe you will need to get an ammunition manufacturers liscense from the BATF.

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    Member Array Greybeard's Avatar
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    I can't speak for other ranges, but our range insurance excludes coverage related to accidents caused by reloads - even if members load their own. And the policy is actually promoted and endorsed by NRA - who sponsors courses in reloading. Go figure. In more ways than one.
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    Quote Originally Posted by Joe R View Post
    How could you ever overproduce your own reloads?
    Good question. I never have been able to do so.
    "In matters of style, swim with the current; in matters of principle, stand like a rock." Thomas Jefferson


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    Quote Originally Posted by Shizzlemah View Post
    Pretty sure you do require a FFL for commercial ammo manufacture. Cheap one though, only $30.

    But, uh, liability would be obscene.... Just for kicks, call your insurance agent and tell them you want to sell ammo. Hope you are sitting down, possibly with an ambulance crew at your side :-)
    That is correct.

    You need a Class 3 FFL.

    Don't even think about selling reloads without product liability insurance.


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    And go to your God like a soldier.

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    VIP Member Array ELCruisr's Avatar
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    Not only all of the above but don't forget you have to form a corporation (not hard but get a lawyer to help), get federal and local tax ID's, get a business license and then deal with zoning issues for your locale while getting an occupational license. If you're thinking of doing this out of your home you may discover your local officials will say "NO". So now you need something zoned industrial and a landlord who doesn't freak at the words ammunition manufacturing and you can bet they won't be real happy with you in a multi tenant facility.

    Trying to do it on the sly without being legal can lead to major fines and probably some very lengthy audits. Not to mention what your insurance company will say if they find out you're doing it from your home! I don't think you'll find it's a cheap operation to set up legally. Even on a small scale.
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    Senior Member Array Duisburg's Avatar
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    nothing personal but I would never shoot anyone's reloads no matter if they were given to me, much less sold.
    I am sworn to protect the Constitution of the U.S.A. from all threats both foreign and domestic.

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    Member Array markp's Avatar
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    Yep,

    Thanks for all your responses, pretty much what I figured. Even if it was economical to do so w ammo cost all the other associated costs would increase the price too much to make it a viable option.

    I was thinking about the Dillon 1050 with that KISS mod from europe, looks like you could really make rounds quickly with that set up.

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    Another of Murphy's Rules: Everyone has a scheme for getting rich that will not work.
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    VIP Member Array Tubby45's Avatar
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    Quote Originally Posted by Captain Crunch View Post
    That is correct.

    You need a Class 3 FFL.

    Don't even think about selling reloads without product liability insurance.
    Wrong. A Class 3 FFL or more correctly a Type 01 FFL with SOT3 status is for dealing in NFA weaponry.

    The correct FFL for an ammunition manufacturer is a Type 06 FFL and cost $30 for three years, requires fingerprint and mugshot submissions. Ammunition is all ammunition including components. If you are not doing it for livelihood (which includes extra, ongoing money as in a PT job) then you don't need a FFL. If you are doing it on an ongoing basis for profit, you wil need an FFL. Period.

    I am in the process of getting my 06 FFL. I am starting a bullet casting and bullet swaging business and will be loading practice ammo for a few local police departments and also be loading obsolete ammo.

    Liability will run $4,000 per year minimum.

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