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As reported on Ammoland, a sudden ATF rule change promulgated entirely without warning in a newsletter has reclassified a critical component of smokeless powder as a “high explosive
The problem is that there are very strict rules governing the storage and transport of high explosives, and the ammunition supply chain is totally unprepared to suddenly comply with those rules.
Overhauling the ammunition supply chain to accommodate those rules will be a long and expensive process, which would be bad enough news for ammo prices. But the knockout blow is the fact that the industry was given no warning and zero grace period, so they’re just screwed, because as of yesterday they’re now in sudden violation of federal law
Manufacturers and importers of smokeless propellant have relied on ATF private letter rulings issued prior to 2016 stating that nitrocellulose wetted with water not less than 25 percent by mass is not subject to regulation under the federal explosives laws. Accordingly, the manufacturers have set up their logistics, storage and operations consistent with nitrocellulose not being regulated as an explosive. Manufacturers and importers may not have adequate storage facilities or record keeping systems to comply with the law. Licensed manufacturers also rely on private, unlicensed vendors to store wetted nitrocellulose in facilities that do not comply with storage requirements. A number of manufacturers also report an adverse impact on their contracts to supply smokeless propellant and finished rounds of ammunition to the Department of Defense
To read the rest of the article
Breaking: Latest ATF Surprise Could Drive Ammo Prices Through the Roof - AllOutdoor.com
The problem is that there are very strict rules governing the storage and transport of high explosives, and the ammunition supply chain is totally unprepared to suddenly comply with those rules.
Overhauling the ammunition supply chain to accommodate those rules will be a long and expensive process, which would be bad enough news for ammo prices. But the knockout blow is the fact that the industry was given no warning and zero grace period, so they’re just screwed, because as of yesterday they’re now in sudden violation of federal law
Manufacturers and importers of smokeless propellant have relied on ATF private letter rulings issued prior to 2016 stating that nitrocellulose wetted with water not less than 25 percent by mass is not subject to regulation under the federal explosives laws. Accordingly, the manufacturers have set up their logistics, storage and operations consistent with nitrocellulose not being regulated as an explosive. Manufacturers and importers may not have adequate storage facilities or record keeping systems to comply with the law. Licensed manufacturers also rely on private, unlicensed vendors to store wetted nitrocellulose in facilities that do not comply with storage requirements. A number of manufacturers also report an adverse impact on their contracts to supply smokeless propellant and finished rounds of ammunition to the Department of Defense
To read the rest of the article
Breaking: Latest ATF Surprise Could Drive Ammo Prices Through the Roof - AllOutdoor.com