Selling reloads to shooting buddies?

[Leo]

I am sure someone has the specifics on this, but if you are manufacturing enough where you need to keep your supplies like powder and primers in bulk, you open another can of worms. It used to be a private car could not transport more than 25 lbs of powder. A residential home could not store more than 50 lbs, and it had to be in a proper "powder battery" ie: a locked cabinet with a pressure relief system to allow the powder to controlled burn and not explode. There are square footage requirments for the reloading room. Some insurance policies set tighter standards than the law and can and will refuse to cover your home. Big volume gets pretty hairy. Give the buddy the ammo, make him buy you and the wife dinner when you go out Saturday night. Stay well under the radar, big brother really IS watching.

 

[CountryBoy19]

Actually, you can't sell your time. That's considering selling 'the labor of manufacturing' which falls under the manufacturing statute.

I may have been wrong on that one, I guess there is always beer and pizza for your labor.

And if Larry manufactured a bunch of ammo for stockpiling, then decided to sell it, he's still selling ammunition he manufactured. It would be the same as if I made ammo before I received my license and then sold it. It's still manufacture for profit, and that's a no-no, no matter what year (or decade) or purpose of the manufacture. Now, if Larry isn't alive anymore, then they're no way to prove intent - but Larry's family is still liable for any mishaps from his ammunition.

I know that you can't really take the "word" of the ATF, but I have personal experience with this on 2 different occasions. Maybe the ATF was feeding me a line, or just telling me it was ok so their under cover agents could stop by the auction and pop the seller. But I did call them twice regarding 2 different situations of selling reloads and they explained it to me that as long as you're not "in business" to sell reloads (ie, the reloads were not manufactured with intent to sell them for profit) then no license was needed.

The two scenarios were as follows:
#1 College gun club that reloaded their own ammo had a large stock-pile of reloads. The club was shut down for "insurance reasons" and all assets were auctioned at public auction. The ATF said the reloads could be sold because the club manufactured them with the intent to use them, not sell them, and changing circumstances forced the sale of the assets.
#2 Big firearm collector with lots of reloading equipment and reloads died. His will stated what friends were to get what, and everything else was to be auctioned off and proceeds donated to a specific charity. My mom works for the auction company so they asked me the legality of selling the ammo and such. I called the ATF and told them the scenario and they said in that case, because the intent was for personal use, but that person was dead and could no longer use them, then the reloads could be auctioned off.

It is exactly the same as the scenario of building a complete firearm from parts and selling it. Technically you're manufacturing. Even if you aren't actually making the receiver itself, assembling it still counts as part of the manufacturing process. If you build one, and then decide to sell it after it's built you're GTG. But if you build one with the intent to sell it for profit then you need a manufacturing FFL.

 

[BE Mike]

When I was in college, a buddy of mine made and sold reloads. He got the appropriate FFL and business license. I, frankly, would be more concerned about the liability issue. What are you going to do if someone's gun blows up when they are using your reloads? The scenario gets more grim, if the shooter gets seriously injured. The little money you might earn reloading, might not look like much.

 

[45pro]

When I was in college, a buddy of mine made and sold reloads. He got the appropriate FFL and business license. I, frankly, would be more concerned about the liability issue. What are you going to do if someone's gun blows up when they are using your reloads? The scenario gets more grim, if the shooter gets seriously injured. The little money you might earn reloading, might not look like much.

Whats the steps you need to take to recieve a FFL and business license? How much do you have to fork over up-front?

I know you will also need liability insurance, however i dont believe its near as expensive as what people think.

I know it is a little different, but by sister runs a daycare and she has liability insurance incase a child broke their leg or some how died at her house. It only costs her $30 a year. Its bundled up with her car insurance i believe.

 

[451_Detonics]

The risk is just too high. And it does not need to be the friend who was shooting the ammo to be the one who sues you. The owner of a trap range in northern Ind had one of the folks shooting there have an AD and hit another shooter. His insurance and the shooter's covered all medical cost etc and that was that...until a niece this guy hadn't seen in 20 years sued for the mental anguish she went through when her "dear uncle" got shot. Sued the range owner and won.

Teach your buddy to reload but never let anyone shoot ammo you have loaded yourself.