Mags- In your case, you will still have to pay an additional 10% on the jigs you're selling. They call it a remanufactured product. Now, if someone buys your jig, adds something to it and they resell it, they will also have to pay the 10%. IRS is covering their donkey so there aren't any loopholes. They want all the money they can get. I know it doesn't seem fair, but that's how it goes. Here's the funny part. Depending on what IRS agent you get, they might not even know the Form 720 exists. When I called to get the form sent to me, the agent said it didn't exist. When I asked for her name and a letter stating that, she transferred me to someone who knew what I was talking about.