This is the email that started it all:
Dear Valued Customer:
Please take a moment to note important changes set forth by the Defense Logistics Agency:
Recently it has been determined that fired munitions of all calibers, shapes and sizes have been designated to be Demil code B. As a result and in conjunction with DLA's current Demil code B policy, this notice will serve as official notification which requires Scrap Venture (SV) to implement mutilation as a condition of sale for all sales of fired munitions effective immediately. This notice also requires SV to immediately cease delivery of any fired munitions that have been recently sold or on active term contracts, unless the material has been mutilated prior to sale or SV personnel can attest to the mutilation after delivery. A certificate of destruction is required in either case.
15051 N Kierland Blvd # 300
Scottsdale, AZ 85254
This is what DOD manual says about Demil Code B:
DEMILITARIZATION CODES TO BE ASSIGNED TO FEDERAL SUPPLY ITEMS AND CODING GUIDANCE
A Non-MLI/Non-CCLI -- Demilitarization not required.
B MLI (Non-SME) -- Demilitarization not required. Trade Security Controls required at disposition.
C MLI (SME) -- Remove and/or demilitarization installed key point(s), as prescribed in this manual, or lethal parts, components and accessories.
D MLI (SME) -- Total destruction of item and components so as to preclude restoration or repair to a usable condition by melting, cutting, tearing, scratching, crushing, breaking, punching, neutralizing, etc. (As an alternate, burial or deep water dumping may be used when approved by the DOD Demilitarization Program Office.)
E MLI -- Demilitarization instructions to be furnished by the DoD Demilitarization Program Office.
F MLI (SME) -- Demilitarization instructions to be furnished by the Item/Technical Manager/Equipment Specialist.
G MLI (SME) -- MLI Demilitarization Required -- AEDA. Demilitarization, and, if required, declassification and/or removal of sensitive marking or information, will be accomplished prior to physical transfer to a DRMO. This code will be used for all AEDA items including those which also require declassification and/or removal of sensitive markings or information.
P MLI (SME) -- MLI (Security Classified Item) -- Declassification, and any other required demilitarization, and removal of any sensitive markings or information will be accomplished prior to accountability or physical transfer to a DRMO. This code will not be assigned to ammunition, explosive and dangerous articles (AEDA) items.
Q CCLI -- Commerce Control List Item -- Demilitarization not required. CCLIs are dual use (military, commercial and other strategic uses) items under the jurisdiction of the Bureau of Industry and Security, U.S. Department of Commerce, through the Export Administration Regulations. The types of items controlled under the CCL are commodities (i.e., equipment, materials, electronics, etc.), software and technology. The CCL does not include those items exclusively controlled by another department or agency of the U.S. government. (See DOD 4160.21-M-1, Chapter 3 and Appendix 5).
Basically if it's not for export, it's good to go.
Here is a link to a current auction of: LOT (3719)LBS APPROXIMATELY EXPENDED BRASS TO INCLUDE: 1958 LBS - 5. 56MM, 1007 LBS - 7. 65MM - WITH TWO BOXES BEING FIRED BLANKS (90 LBS), 709 LBS - 9MM, 45 LBS - SHOT GUN SHELLS, 3 PLTS, MUTILATION NOT REQUIRED.