I did a little research on this and I found some good info I'd like to share incase others, like myself, are new to this:
Manufacturer's Taxes
If you manufacture, produce, or import taxable articles, you must pay an excise tax when you sell the articles. Loosely called manufacturer's taxes, these apply to:
A manufacturer: any person who produces a taxable article from new or raw material, scrap, salvage, or even junk material.
An importer: a person who brings an article into the United States, or withdraws an article from a customs bonded warehouse for sale or use in the United States.
The government imposes a manufacturer's excise tax when the manufacturer (or importer) sells an item. The tax rate varies according to the product being sold. For example, following are the different tax rates for sporting goods:
Companies that manufacture sport-fishing equipment such as rods, poles, lures, baits, hooks, tackle boxes, baskets, fishing vests, rod holders, and fishing outriggers pay a 10 percent manufacturer's excise tax.
Companies that manufacture electric outboard boat motors and sonar devices pay a three percent manufacturer's tax. However, the tax on a sonar device can't exceed $30.
Companies that manufacture bows pay an 11 percent tax on the sale of any bow having a draw weight of 10 pounds or more.
Companies that manufacture arrows pay 12.4 percent of the sale price on any shaft that measures? 18 inches or more. If the arrows are less than 18 inches but suitable for use with a taxable bow (those with a draw weight of 10 pounds or more), they are also taxed.