You should know as a consumer that all ammunition is subject to 11% Federal Excise Tax that is paid by the manufactuer on every round of ammo manufactured. You ultimately are paying this tax since it is figured into the price of the product.

 

You should also know that it is illegal to manufacture ammunition for sale unless the person manufacturing the ammunition has a Class 06 Federal Firearms License. 

 

 If you are purchasing ammunition at gun shows and other venues from an unlicensed manufacturer, you should know that he is breaking the law and adds to the fire spread by the media about the "unregulated" gun show trade.  Also, do you really want to buy a product in an unmarked bag or box made by someone with unknown credentials and put it into your $1000 rifle or pistol and pull the trigger??  More than one gun and person has been wrecked by faulty ammunition.

 

When you purchase ammunition from a small business or individual you should ask the following questions:

 

1) Are you licensed to produce ammunition by having a Class 06 FFL?

 

2) Is your business insured with a commercial liability insurance policy?

 

3) What qualifications and training do you have to make ammunition?

 

 

If the guy at the gunshow cannot answer these questions, you better look somewhere else for the product.  Ask yourself if it is better to save a couple of bucks on a box of black market ammo or pay hundreds to fix your gun or maybe thousands to fix your hands and face if a gun blows up!