As I’m sure you’re aware by now, the ATF is proposing reclassifying M855 5.56 ammo (aka green tip, aka Penetrator) as a non-sporting, armor piercing round. This would make the ammo unavailable for purchase if this change is put into place.
Less than 48 hours after this news, online prices are up to around $0.50/round shipped, although very few vendors still have ammo in stock at that price. Other vendors are charging upwards of $1.00/round shipped. On Friday night, M855 could be found fairly readily for about $0.34-38/round if you bought a full case.
According to Wiki Arms, the current availability and prices are definitely being affected by the news.
Here are the details on the proposed ban, via the NRA-ILA:
Now, BATFE has released a “Framework for Determining Whether Certain Projectiles are ‘Primarily Intended for Sporting Purposes’ Within the Meaning of 18 U.S.C. 921(a)(17)(c)”, which would eliminate M855’s exemption to the armor piercing ammunition prohibition and make future exemptions nearly impossible.
By way of background, federal law imposed in 1986 prohibits the manufacture, importation, and sale by licensed manufacturers or importers, but not possession, of “a projectile or projectile core which may be used in a handgun and which is constructed entirely . . . from one or a combination of tungsten alloys, steel, iron, brass, bronze, beryllium copper, or depleted uranium.” Because there are handguns capable of firing M855, it “may be used in a handgun.” It does not, however, have a core made of the metals listed in the law; rather, it has a traditional lead core with a steel tip, and therefore should never have been considered “armor piercing.” Nonetheless, BATFE previously declared M855 to be “armor piercing ammunition,” but granted it an exemption as a projectile “primarily intended to be used for sporting purposes.”
Now, however, BATFE says that it will henceforth grant the “sporting purposes” exception to only two categories of projectiles:
Category I: .22 Caliber Projectiles
A .22 caliber projectile that otherwise would be classified as armor piercing ammunition under 18 U.S.C. 921(a)(17)(B) will be considered to be “primarily intended to be used for sporting purposes” under section 921(a)(17)(C) if the projectile weighs 40 grains or less AND is loaded into a rimfire cartridge.
Category II: All Other Caliber Projectiles
Except as provided in Category I (.22 caliber rimfire), projectiles that otherwise would be classified as armor piercing ammunition will be presumed to be “primarily intended to be used for sporting purposes” under section 921(a)(17)(C) if the projectile is loaded into a cartridge for which the only handgun that is readily available in the ordinary channels of commercial trade is a single shot handgun. ATF nevertheless retains the discretion to deny any application for a “sporting purposes” exemption if substantial evidence exists that the ammunition is not primarily intended for such purposes.
The ATF is accepting public comments on these proposed regulations through March 15th.