FFL requirement for manufacture and sale of bullets

[jcunclejoe]

I recently inquired with the ATF about wether or not I needed a type 6 FFL for making bullets to sell.
Here is their response. Please note the highlighted portions.

Ammunition includes cartridge cases, primers, bullets or propellant powder designed for use in any firearm other than an antique firearm. Items NOT covered include blank ammunition, tear gas ammunition, pellets and nonmetallic shotgun hulls without primers. Generally, no records are required for ammunition transactions. However, information about the disposition of armor piercing ammunition is required to be entered into a record by importers, manufacturers, and collectors. A license is not required for dealers in ammunition only. [18 U. S. C. 921( a)( 17) and 922( b)( 5), 27 CFR 178.11]

You would require a manufacturer of ammunition license, FFL type 06 to manufacture bullets for sale. Request an application package at: NLClicenseapplication@atf.gov.  Provide your name and mailing address.  If you comply with all the necessary requirements your application for a federal firearms license will be approved.

Type 06 - MANUFACTURER OF AMMUNITION FOR FIREARMS
other than ammunition for destructive devices or armor piercing ammunition. 18 U.S.C 923(a)(1)(C)
Fee: $30.00 for three (3) years.

I hope this helps someone or saves them the trouble of asking.
Joe

[talon]

If your State or political division requires a business licence, the ATF will want to see that, too. Also, they make a physical inspection of your production site ( for purposes I'm not sure of) and conduct a face-to-face interview with you and perhaps some of your employees. Remember, anyone can make these components without a type 6 licence, but selling them, if you're the one making them, requires one. The ATF does not collect any sales tax, they just have the right to control production.

[jcunclejoe]

Seems odd that they would go to the trouble of an inspection of a bullet maker for a $10 per year fee.

Will they inspect the whole house or just the part where the bullets are made (garage in my case)?

I suppose until I get the FFL I can just stockpile bullets. Should make for plenty of inventory to start with.

Thanks guys for the input.
Joe

[jcunclejoe]

That sounds good, I would hate to have anyone touring the house. My swaging set-up is in the garage.
I guess I'll get the paperwork filled out as soon as it arrives and get this thing going.

Thanks for all of the information.
Joe

[Reed1911]

I think something needs to be clear here, The BATF only requires you have an 06 FFL for ammunition manufacture. Bullets meaning the projectile, are not regulated by the BATF at all. I believe the response they sent you has a bit of misleading information as in the second paragraph they seem to be refering to ammunition as bullets. [/u]

[talon]

The BATF is not known for clarity, but to SELL one or more bullets you make, you will need a Type 6 licence, and a Business Licence from your State ( if they have such a thing).  The operative verb is "SELL". You are reminded that to ignore such a law is to risk pounding rocks for several years, loose your right to touch or own firearms and ammunition, and who knows what else. The Judge and jury at your trial won't be impressed if your defence is that you were advised otherwise by someone on the internet.  

[Reed1911]

Again, Bullets are not a regulated item. You can make and sell as many as you like with no license from the BATF. You are correct in that you will have laws of your State to follow, but the BATF ONLY regulates ammunition (and other things, but the others are not applicable in this case). Ammunition being a loaded round.

[Reed1911]

Oh! And the regulation on ammunition is only for taxation purposes (we are talking about regular ammunition here, not AP, HE, etc..) There is no "inspection" per se; other than they come to the place of business to say hello and explain all the rules. IF you are using blackpowder, then there are routine inspections since black powder is a low explosive (smokeless is a flammable solid). They also have you fill out the requirder paperwork for the EPA and a few other forms.
But again, this is for Ammunition only, not bullets.

[talon]

jcunclejoe who started this thread was correct then and remains so. He cited the law and the procedure to apply for a Type 6 FFL. ((Section 923 is also relevant)). Again, no federal tax is collected on  making or selling bullets. As a matter of fact, cartridge components aren't even addressed in that part of the Law that concerns taxation. I manufacture and sell bullets. My licence, manufacturing area and my activities are periodically inspected by 1 or more members of the much overworked BTAF staff. I can't figure out how they can keep such a close watch on my $10 yearly fee, but that's the way it is.

[Reed1911]

That's odd, or maybe it's just my SAC here, we have not been inspected, contacted or talked to in 5 years on the 06 license. The 01 license is a whole different matter. Maybe they figre they do all the inspection they need when they come for the 01 license stuff.

[bullet maker]

Seems odd that they would go to the trouble of an inspection of a bullet maker for a $10 per year fee.

Will they inspect the whole house or just the part where the bullets are made (garage in my case)?

I suppose until I get the FFL I can just stockpile bullets. Should make for plenty of inventory to start with.

Thanks guys for the input.
Joe

They will inspect the whole house, if thats the address you gave for your buisness. However if you have a detached building, seperate from you house that you use for your buisness, thats the area they can inspect. Rather word, if your buisness is seperate from your house, that seperate building is the only thing they can inspect.

bullet maker

[jcunclejoe]

Well , I guess I'll see about the whole thing soon enough. I mailed off the application and fee last week. I really don't expect to hear anything until sometime in January at the very soonest.

Then I can get to selling some bullets, whoo-hoo.
Joe