Homemade ammunition (reloads) and homemade firearms are often misunderstood things.
It’s been said many times but it is just a myth. Federal law does not prohibit private party sales, although it does regulate individuals and groups who engage in business of manufacturing and selling firearms and ammunition for livelihood and profit. Particularly if it’s in interstate or foreign commerce.
Federal law states:
“”business” means—18 USC 921
(A)as applied to a manufacturer of firearms, a person who devotes time, attention, and labor to manufacturing firearms as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the firearms manufactured;”
And then later specifically defines the objective of livelihood and profit.
(22) The term “with the principal objective of livelihood and profit” means that the intent underlying the sale or disposition of firearms is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents, such as improving or liquidating a personal firearms collection.”18 USC 921
You can make a gun for yourself, then decide later on that you don’t want it and you want something else, so you liquidate it from your personal collection to improve your personal collection.
Same goes for reloaded ammunition.
“(B) as applied to a manufacturer of ammunition, a person who devotes time, attention, and labor to manufacturing ammunition as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the ammunition manufactured;” (18 USC 921)18 USC 921
We generally still don’t recommend it, as a firearms community as some risk is involved as far as liability for the safe function of the firearm and ammunition. What if the gun explodes? What if the ammo was double charged and hurts someone? Your negligence could bring liability upon you in the event of catastrophic failure.
However, as long as you are both residents of the same state, state and local laws allow it (AZ does), and you aren’t otherwise prohibited from possessing firearms or ammunition, then legally speaking it’s possible to sell your homemade gun or reloaded ammunition.
Federal law only requires that FFLs mark firearms manufactured or imported with a serial number and other identifying information. There is also no law, federal or state, that requires persons who are not licensed FFLs to mark firearms with a Serial Number. (27 CFR 478.92)
**This is provided as a Legal Information Resource and should not be treated as legal advice. Updated 6/6/2020