Is it watertight where the handle enters the top?

Yes they are as long as you have a secure latch. If the latch isn't locked there is a chance of leaking. I placed 15 pounds of weight in the box and submerged it over night in a tub sitting upright and no leaks. Hope this helps. The other answer about the handle is very true it is completely water tight.

does this have the same interior dimensions as a standard military ammo can?

That depends on the military ammunition. There are 2 or more "standard military " sizes. I can tell you that a box of 500 - 22 LR fits perfectly. My son in law carries 380, 9 Mil and 22LR boxes in his. An additional comment. If you can find a military box that is not rusted, you will pay 2-3 times more for it and hope it is water tight

Brand	プラノ(PLANO)
Model Number	1312-00
Product Dimensions	29.54 x 18.01 x 13.03 cm; 453.59 g
Color	green camo
Material	Polypropylene
Wallpaper Pattern	solid
Quantity	1
Laser Class	Simple, waterproof
Are Batteries Included	No
Item Weight	454 g

Plano No.1312-00 Green Simple Waterproof Field Box, SS 11.8 x 5.1 x 7.1 inches (30 x 13 x 18 cm)

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