FEDERAL EXPLOSIVES LAW

Organized Crime Control Act of 19 70,
Title XI

Regulation of Explosives

Public Law 91-452, Approved October 15, 1970 (as Amended)

[NOTE: Any reference to the Internal Revenue
Code of 1954 refers to the Internal Revenue Code of 1986

(§2, Public Law 99-514, 100 Stat. 2085, October 22, 1986.)]

PURPOSE

SEC. 1 1 01. The Congress hereby declares that the
purpose of this title is to protect interstate and foreign commerce against
interference and interruption by reducing the hazard to persons and property
arising from misuse and unsafe or insecure storage of explosive materials. It is
not the purpose of this title to place any undue or unnecessary Federal
restrictions or burdens on law-abiding citizens with respect to the acquisition,
possession, storage, or use of explosive materials for industrial, mining,
agricultural, or other lawful purposes, or to provide for the imposition by
Federal regulations of any procedures or requirements other than those
reasonably necessary to implement and effectuate the provisions of this
title.

SEC. 1102. Title 18, United States Code, is amended by
adding after chapter 39 the following chapter:

Chapter 40. -IMPORTATION,
MANUFACTURE9 DISTRIBUTION AND

STORAGE OF EXPLOSIVE MATERIALS

Editor's Note

The sections of law set out herein were newly added by Public
Law 91-452, Title XI, §1102(a), Oct. 15, 1970, 84 Stat. 952-959, and remain
unchanged unless otherwise footnoted.

Sec.

841. Definitions.

842. Unlawful acts.

843. Licensing and user permits.

844. Penalties.

845. Exceptions; relief from disabilities.

846. Additional powers of the Secretary.

847. Rules and regulations.

848. Effect on State law.

§ 841. Definitions

As used in this chapter --

(a) "Person" means any individual, corporations, company, association,
firm, partnership, society, or joint stock company.

(b) "Interstate or foreign commerce" means commerce between any place
in a State and any place outside of that State, or within any possession of the
United States (not including the Canal Zone) or the District of Columbia, and
commerce between places within the same State but through any place outside of
that State. "State" includes the District of Columbia, the Commonwealth
of Puerto Rico, and the possessions of the United States (not including the
Canal Zone).

(c) "Explosive materials" means explosives, blasting agents, and
detonators.

(d) Except for the purposes of subsections (d), (e), (f), (g), (h),
(i), and 0) of section 844 of this title, "explosives" means any chemical
compound mixture, or device, the primary or common purpose of which is to
function by explosion; the term includes, but is not limited to, dynamite and
other high explosives, black powder, pellet powder, initiating explosives,
detonators, safety fuses, squibs, detonating cord, igniter cord, and igniters.
The Secretary shall publish and rise at least annually in the Federal Register a
list of these and any additional explosives which he determines to be within the
coverage of this chapter. For the purposes of subsections (d), (e), (f), (g),
(h), and (i) of section 844 of this title, the term "explosive" is
defined in subsection 0) of such section 844.

(e) "Blasting agent" means any material or mixture, consisting of fuel
and oxidizer, intended for

blasting, not otherwise defined as an explosive: Provided,
That the finished product, as mixed for use of shipment, cannot be detonated
by means of a numbered 8 test blasting cap when unconfined.

(f) "Detonator" means any device containing a detonating
charge that is used for initiating detonation in an explosive; the term
includes, but is not limited to, electric blasting caps of instantaneous and
delay types, blasting caps for use with safety fuses and detonating-cord delay
connectors.

(g) "Importer" means any person engaged in the business
of importing or bringing explosive materials into the United States for purposes
of sale or distribution.

(h) "Manufacturer" means any person engaged in the
business of manufacturing explosive materials for purposes of sale of
distribution or for his own use.

(i) "Dealer" means any person engaged in the business of
distributing explosive materials at wholesale or retail.

(j) "Permittee" means any user of explosives for a
lawful purpose, who has obtained a user permit under the provisions of this
chapter.

(k) "Secretary" means the Secretary of the Treasury or
his delegate.

(l) "Crime punishable by Imprisonment for a term
exceeding one year" shall not mean (1) any Federal or State offenses
pertaining to antitrust violations, unfair trade practices, restraints of trade,
or other similar offenses relating to the regulation of business practices as
the Secretary may by regulation designate, or (2) any State offense
(other than one involving a firearm or explosive) classified by the laws of the
State as a misdemeanor and punishable by a term of imprisonment of two years or
less.

(m) "Licensee" means any importer, manufacturer, or
dealer licensed under the provisions of this chapter.

(n) "Distribute" means sell, issue, give, transfer, or
otherwise dispose of.

§ 842. Unlawful acts

(a) It shall be unlawful for any person-

(1) to engage in the business of importing,
manufacturing, or dealing in explosive materials without a license issued under
this chapter;

(2) knowingly to withhold information or to make any
false or fictitious oral or written statement or to furnish or exhibit any
false, fictitious, or misrepresented identification, intended or likely to
deceive for the purpose of obtaining explosive materials, or a license, permit,
exemption, or relief from disability under the provisions of this chapter;
and

(3) other than a licensee or permiftee knowingly-

(A) to transport, ship, cause to be transported, or
receive in interstate or foreign commerce any explosive materials, except that a
person who lawfully purchases explosive materials from a licensee in a State
contiguous to the State in which the purchaser resides may ship, transport, or
cause to be transported such explosive materials to the State in which he
resides and may receive such explosive materials in the State in which he
resides, if such transportation, shipment, or receipt is permitted by thelaw of
the State in which he resides; or

(B) to distribute explosive materials to any person
(other than a licensee or permittee) who the distributor knows or has reasonable
cause to believe does not reside in the State in which the distributor
resides.

(b) It shall be unlawful for any licensee knowingly to
distribute any explosive materials to any person except-

(1) a licensee;

(2) a permittee; or

(3) a resident of the State where distribution
is

made and in which the licensee is licensed to do business or a
State contiguous thereto if permitted by the law of the State of the purchaser's
residence.

(c) It shall be unlawful for any licensee to distribute
explosive materials to any person who the licensee has reason to believe intends
to transport such explosive materials into a State where the purchase,
possession, or use of explosive materials is prohibited or which does not permit
its residents to transport or ship explosive materials into it or to receive
explosive materials in it.

(d) It shall be unlawful for any licensee knowingly to
distribute explosive materials to any individual who:

(1) is under twenty-one years of age;

(2) has been convicted in any court of a crime
punishable by imprisonment for a term exceeding one year;

(3) is under indictment for a crime punishable by
imprisonment for a term exceeding one year;

(4) is a fugitive from justice;

(5) is an unlawful user of or addicted to any controlled
substance (as defined in section 102 of the Controlled

Substances Act (21 U.S.C. 802)).

(6) has been adjudicated a mental defective.

(e) It shall be unlawful for any licensee knowingly to
distribute any explosive materials to any person in

any State where the purchase, possession, or use by such person
of such explosive materials would be in violation of any State law or any
published ordinance applicable at the place of distribution.

(f) It shall be unlawful for any licensee or permittee
willfully to manufacture, import, purchase, distribute, or receive explosive
materials without making such records as the Secretary may by regulation
require, including, but not limited to, a statement of intended use, the name,
date, place of birth, social security number or taxpayer identification number,
and place of residence of any natural person to whom explosive materials are
distributed. If explosive materials are distributed to a corporation or other
business entity, such records shall include the identity and principal and local
places of business and the name, date, place of birth, and place of residence of
the natural person acting as agent of the corporation or other business entity
in arranging the distribution.

(g) It shall be unlawful for any licensee or permittee
knowingly to make any false entry in any record which he is required to keep
pursuant to this section or regulations promulgated under section 847 of this
title.

(h) It shall be unlawful for any person to receive,
conceal, transport, ship, store, barter, sell, or dispose of any explosive
materials knowing or having reasonable cause to believe that such explosive
materials were stolen.

(i) It shall be unlawful for any person-

(1) who is under indictment for, or who has been
convicted in any court of, a crime punishable by imprisonment for a term
exceeding one year;

(2) who is a fugitive from justice;

(3) who is an unlawful user of or addicted toany
controlled substance (as defined in section 102 of the Controlled Substances Act
(21 U.S.C. 802)).

(4) who has been adjudicated as a mental defective or
who has been committed to a mental institution;

to ship or transport any explosive in interstate or foreign
commerce or to receive any explosive which has been shipped or transported in
interstate or foreign commerce.

(j) It shall be unlawful for any person to store any
explosive material in a manner not in conformity with regulations promulgated by
the Secretary. In promulgating such regulations, the Secretary shall take into
consideration the class, type, and quantity of explosive materials to be stored,
as well as the standards of safety and security recognized in the explosives
industry.

(k)It shall be unlawful for any person who has knowledge
of the theft or loss of any explosive materials from his stock, to fail to
report such theft or loss within twenty-four hours of discovery thereof, to the
Secretary and to appropriate local authorities.

(Amended by Public Law 100-690, Title VI, § 6474(c),(d),
Nov. 18, 1988, 102 Stat. 4380.)

§ 843. Licenses and user permits

(a) An application for a user permit or a license to import,
manufacture, or deal in explosive materials shall be in such form and contain
such information as the Secretary shall by regulation prescribe. Each applicant
for a license or permit shall pay a fee to be charged as set by the Secretary,
said fee not to exceed $200 for each license or permit. Each license or permit
shall be valid for no longer than three years from date of issuance and shall be
renewable upon the same conditions and subject to the same restrictions as the
original license or permit and upon payment of a renewal fee not to exceed
one-half of the original fee.

(b) Upon the filing of a proper application and payment of the
prescribed fee, and subject to the provisions of this chapter and other
applicable laws, the Secretary shall issue to such applicant the appropriate
license or permit if-

(1) the applicant (including in the case of a corporation,
partnership, or association, any individual possessing, directly or indirectly,
the power to direct or cause the direction of the management and policies of the
corporation, partnership, or association) is not a person to whom the
distribution of explosive materials would be unlawful under section 842(d) of
this chapter;

(2) the applicant has not willfully violated any of the provisions of
this chapter or regulations issued hereunder;

(3) the applicant has in a State premises from which he conducts or
intends to conduct business;

(4) theapplicant has a place of storage for explosive materials which
meets such standards of public safety and security against theft as the
Secretary by regulations shall prescribe; and

(5) the applicant has demonstrated and certified in writing that he is
familiar with all published State laws and local ordinances relating to
explosive materials for the location in which he intends to do
business.

(c) The Secretary shall approve or deny an application within a period
of forty-five days beginning on the date such application is received by the
Secretary.

(d) The Secretary may revoke any license or permit issued under this
section if in the opinion of the Secretary the holder thereof has violated any
provision of this chapter or any rule or regulation prescribed by the Secretary
under this chapter, or has become ineligible to acquire explosive materials
under section 842(d). The Secretary's action under this subsection may be
reviewed only as provided in subsection (e)(2) of this section.

(e)(1) Any person whose application is denied or whose license or
permit is revoked shall receive a written notice from the Secretary stating the
specific grounds upon which such denial or revocation is based. Any notice of a
revocation of a license or permit shall be given to the holder of such license
or permit prior to or concurrently with the effective dateof the revocation.

(2) If the Secretary denies an application for, or revokes a license,
or permit, he shall, upon request by the aggrieved party, promptly hold a
hearing to review his denial or revocation. In the case of a revocation, the
Secretary may upon a request of the holder stay the eff ective date of the
revocation. A hearing under this section shall be at a location convenient to
the aggrieved party. The Secretary shall give written notice of his decision to
the aggrieved party within a reasonable time after the hearing. The aggrieved
party may, within sixty days after receipt of the Secretary's written decision,
file a petition with the United States court of appeals for the district in
which he resides or has his principal place of business for a judicial review of
such denial or revocation, pursuant to sections 701-706 of title 5, United
States Code.

(f) Licensees and permiftees shall make available for inspection at
all reasonable times their records kept pursuant to this chapter or the
regulations issued hereunder, and shall submit to the Secretary such reports and
information with respect to such records and the contents thereof as he shall by
regulations prescribe.

The Secretary may enter during business hours the premises (including places
of storage) of any licensee or permiftee, for the purpose of inspecting or
examining (1) any records or documents required to be kept by such
licensee or permiftee, under the provisions of this chapter or regulations
issued hereunder, and (2) any explosive materials kept or stored by such
licensee or permiftee at such premises.

Upon the request of any State or any political subdivision thereof, the
Secretary may make available to such State or any political subdivision thereof,
any information which he may obtain by reason of the provisions of this chapter
with respect to the identification of persons within such State or political
subdivision thereof, who have purchased or received explosive materials,
together with a description of such explosive materials.

(g) Licenses and permits issued under the provisions of subsection (b)
of this section shall be kept posted and kept available for inspection on the
premises covered by the license and permit.

§ 844. Penalties

(a) Any person who violates subsections (a) through (i) of section 842
of this chapter shall be fined not more than $1 0,000 or imprisoned not more
than ten years, or both.

(b) Any person who violates any other provision of section 842 of this
chapter shall be fined not more than $1,000 or imprisoned not more than one
year, or both.

(c) Any explosive materials involved or used or intended to be used in
any violation of the provisions of this chapter or any other rule or regulation
promulgated thereunder or any violation of any criminal law of the United States
shall be subject to seizure and forfeiture, and all provisions of the Internal
Revenue Code of 1954 relating to the seizure, forfeiture, and disposition of
firearms, as defined in section 5845(a) of that Code, shall, so far as
applicable, extend to seizures and forfeitures under the provisions of this
chapter.

(d) Whoever transports or receives, or attempts to transport or
receive, in interstate or foreign commerce any explosive with the knowledge or
intent that it will be used to kill, injure, or intimidate any individual or
unlawfully to damage or destroy any building, vehicle, or other real or personal
property, shall be imprisoned for not more than ten years, or fined not more
than $1 0,000, or both; and if personal injury results to any person, including
any public safety officer performing duties as a direct or proximate result of
conduct prohibited by this subsection, shall be imprisoned for not more than
twenty years or fined not more than $20,000, or both; and if death results to
any person, including any public safety officer performing duties as a direct or
proximate result of conduct prohibited by this subsection, shall be subject to
imprisonment for any term of years, or to the death penalty or to life
imprisonment as provided in section34 of this title.

(e) Whoever, through the use of the mail, telephone, telegraph, or
other instrument of commerce,

willfully makes any threat, or maliciously conveys false information knowing
the same to be false, concerning an attempt or alleged attempt being made, or to
be made, to kill, injure, or intimidate any individual

or unlawfully to damage or destroy any building, vehicle, or other real or
personal property by means of fire or an explosive shall be imprisoned for not
more than five years or fined not more than $5,000, or both.

(f) Whoever maliciously damages or destroys, or attempts to damage or
destroy, by means of fire or an explosive, any building, vehicle, or other
personal or real property in whole or in part owned, possessed, or used by, or
leased to, the United States, any department or agency thereof or any
institution or organization receiving Federal financial assistance shall be
imprisoned for not more than ten years or fined not more than $1 0,000, or both;
and if personal injury results to any person, including any public safety
officer performing duties as a direct or proximate result of conduct prohibited
by this subsection, shall be imprisoned for not more than twenty years or fined
not more than $20,000, or both; and if death results to any person, including
any public safety officer performing duties as a direct or proximate result of
conduct prohibited by this subsection, shall be subject to imprisonment for any
term of years, or to the death penalty or to life imprisonment as provided in
section 34 of this title.

(g)(1) Except as provided in paragraph (2), whoever possesses an
explosive in an airport that is subject to the regulatory authority of the
Federal Aviation Administration, or in any building in whole or in part owned,
possessed, or used by, or leased to, the United States or any department or
agency thereof, except with the written consent of the agency, department, or
other person responsible for the management of such building or airport, shall
be imprisoned for not more than five years, or fined under this title, or
both.

(2) The provisions of this subsection shall not be applicable to-

(A) the possession of ammunition (as that term is defined in
regulations issued pursuant to this chapter) in an airport that is subject to
the regulatory authority of the Federal Aviation Administration if such
ammunition is either in checked baggage or in a closed container; or

(B) the possession of an explosive in an airport if the packaging and
transportation of such explosive is exempt from, or subject to and in accordance
with, regulations of the Research and Special Projects Administration for the
handling of hazardous materials pursuant to the Hazardous Materials
Transportation Act (49 App.U.S.C. 1801, et seq.).

(h) Whoever-

(1) uses fire or an explosive to commit any felony which may be
prosecuted in a court of the United States, or

(2) carries an explosive during the commission of any felony which may
be prosecuted in a court

of the United States,

including a felony which provides for an enhanced punishment if committed by
the use of a deadly or dangerous weapon or device shall, in addition to the
punishment provided for such felony, be sentenced to imprisonment for five
years. In the case of a second or subsequent conviction under this subsection,
such person shall be sentenced to imprisonment for ten years. Notwithstanding
any other provision of law, the court shall not place on probation or suspend
the sentence of any person convicted of a violation of this subsection, nor
shall the term of imprisonment imposed under this subsection run concurrently
with any other term of imprisonment including that imposed for the felony in
which the explosive was used or carried.

(i) Whoever maliciously damages or destroys, or attempts to damage or
destroy, by means of fire or an explosive, any building, vehicle, or other real
or personal property used in interstate or foreign commerce or in any activity
affecting interstate or foreign commerce shall be imprisoned for not more than
ten years or fined not more than

$1 0,000, or both; and if personal injury results to any person, including
any public safety officer performing duties as a direct or proximate result of
conduct prohibited by this subsection, shall be imprisoned for not more than
twenty years or fined not more than $20,000, or both; and if death results to
any person, including any public safety officer performing duties as a direct or
proximate result of conduct prohibited by this subsection, shall also be subject
to imprisonment for any term of years, or to the death penalty or to life
imprisonment as provided in section 34 of this title.

(j) For the purposes of subsections (d), (e), (f), (g), (h), and (i)
of this section, the term "explosive" means gunpowders, powders used for
blasting, all forms of high explosives, blasting materials, fuzes (other than
electric circuit breakers), detonators, and other detonating agents, smokeless
powders, other explosive or incendiary devices within the meaning of paragraph
(5) of section 232 of this title, and any chemical compounds, mechanical
mixture, or device that contains any oxidizing and combustible unit, or other
ingredients, in such proportions, quantities, or packing that ignition by fire,
by friction, by concussion, by percussion, or by detonation of the compound,
mixture, or device or any part thereof may cause an explosion.

(Amended by Public Law 97-298, § 2, Oct. 12, 1982, 96 Stat. 1319; Public Law
98-473, Title 11, § 1014, Oct. 12, 1984, 98 Stat. 2142; Public Law 100-690,
Title VI, § 6474(a),(b), Nov. 18,1988, 102 Stat. 4379, 4380.)

§ 845. Exceptions; relief from disabilities

(a) Except in the case of subsections (d), (e), (f), (g), (h), and (i)
of section 844 of this title, this chapter shall not apply to:

(1) any aspect of the transportation of explosive materials via
railroad, water, highway, or air which are regulated by the United States
Department of Transportation and agencies thereof;

(2) the use of explosive materials in medicines and medicinal agents
in the forms prescribed by the official United States Pharmacopeia, or the
National Formulary;

(3) the transportation, shipment, receipt, or importation of explosive
materials for delivery to any agency of the United States or to any State or
political subdivision thereof;

(4) small arms ammunition and component thereof;

(5) commercially manufactured black powder in quantities not to exceed
fifty pounds, percussion caps, safety and pyrotechnic fuses, quills, quick and
slow matches, and friction primers, intended to be used solely for sporting,
recreational, or cultural purposes in antique firearms as defined in section
921(a)(16) of title 18 of the United States Code, or in antique devices as
exempted from the term "destructive device" in section 921 (a)(4) of title 18 of
the United States Code; and

(6) the manufacture under the regulation of the military department of
the United States of explosive materials for, or their distribution to or
storage or possession by the military or naval services or other agencies of the
United States; or to arsenals, navy yards, depots, or other establishments owned
by, or operated by or on behalf of, the United States.

(b) A person who had been indicted for or convicted of a crime
punishable by imprisonment for a term exceeding one year may make application to
the Secretary for relief from the disabilities imposed by this chapter with
respect to engaging in the business of importing, manufacturing, or dealing in
explosive materials, or the purchase of explosive materials, and incurred by
reason of such indictment or conviction, and the Secretary may grant such relief
if it is established to his satisfaction that the circumstances regarding the
indictment or conviction, and the applicant's record and reputation, are such
that the applicant will not be likely to act in a manner dangerous to public
safety and that the granting of the relief will not be contrary to the public
interest. A licensee or permittee who makes application for relief from the
disabilities incurred under this chapter by reason of indictment or conviction,
shall not be barred by such indictment or conviction from further operations
under his license or permit pending final action on an application for relief
filed pursuant to this section.

(Amended by Public Law 99-639, § 101, Jan. 4, 1975, 88 Stat. 2217.)

§ 846. Additional Powers of the Secretary

The Secretary is authorized to inspect the site of any
accident, or fire, in which there is reason to believe that explosive materials
were involved, in order that if any such incident has been brought about by
accidental means, precautions may be taken to prevent similar accidents from
occurring.

In order to carry out the purpose of this subsection, the
Secretary is authorized to enter into or upon any property where explosive
materials have been used, are suspected of having been used, or have been found
in an otherwise unauthorized location. Nothing in this chapter shall be
construed as modifying or otherwise affecting in any way the investigative
authority of any other Federal agency. In addition to any other investigatory
authority they have with respect to violations of provisions of this chapter,
the Attorney General and the Federal Bureau of Investigation, together with the
Secretary, shall have authority to conduct investigations with respect to
violations of subsection (d), (e), (f), (g), (h), or (i) of section 844
of this title.

§ 847. Rules and regulations

The administration of this chapter shall be vested in the
Secretary. The Secretary may prescribe such rules and regulations as he deems
reasonably necessary to carry out the provisions of this chapter. The Secretary
shall give reasonable public notice, and afford to interested parties
opportunity for hearing, prior to prescribing such rules and regulations.

§ 848. Effect on State law

No provision of this chapter shall be construed as indicating
an intent on the part of the Congress to occupy the field in which such
provision operates to the exclusion of the law of any State on the same subject
mafter, unless there is a direct and positive conflict between such provision
and the law of the State so that the two cannot be reconciled or consistently
stand together.

Title 27, Code of Federal Regulations

Part 55, Commerce in Explosives

-SUBJECT INDEX TO PART 55[NOTE: This listing is not necessarily
all-inclusive]

APPLICANT/APPLICATION:

Abandoned Application .48

Applicant Must be 21 or Older .49(b)(1)

Applicant Must be Familiar With State and Local Explosives Laws .49(b)(7)

Applicant Must Have Appropriate Storage Facilities .49(b)(6)

Applicant Must Have Premises For Business or Operation .49(b)(5)

Applicant Must Not Be Willful Violator of Law or Regulations .49(b)(3)

Applicant Must Not Have Either Withheld or Made False Statement .49(b)(4)

Application Delay, When .49(c),.83,.142

Approval/Denial Must be Within 45 Days; Exceptions .49(c)

Approved if Certain Criteria Met .49(b)

Fees.42,.43

Fees Not Refundable .44

Filing For License/Permit .41(b),.45,.46

Insufficient Fee .47

Water Pollution Control Act Certificate Required .49(b)(8)

BLACK POWDER:

Importation by Nonlicensees/ Nonpermittees .1 08(b)

Nonlicensees/Nonpermittees, Purchase by .26(a)(2),.106(d)

Surplus Stocks to Nonlicensees/

Nonpermittees .105(g)

BUSINESS DISCONTINUANCE: .61,.128

CERTIFIED:

Copies of Licenses and Permits .104

List of Authorized Agents .105(e)

Statement of Intended Use Furnished to Supplier .103(d)

DEFINITIONS; TERMS USED: II

Disclosure of Information to State and Subdivisions by Request .25

DISTRIBUTIONS TO NONLICENSEES/NONPERMITTEES:

ATF Form 5400.8, Use of .105(f)

Contiguous State Enactment .1 05(c)

Disposing of Surplus Stocks .105(d)

Same State Residents (Use Form 5400.4) .1 05(b)

ENTRY AND EXAMINATION:

During Business Hours .24,.121(b)

Right of, by ATF .24,.31,.121(b)

Site of Accident/Fire .31

Use/Storage Locations .24,.31,.121(b)

EXCEPTIONS; EXEMPTIONS:

Black Powder Not Over 50# Used in Antique

Firearms/Devices .26,.141(b)

Caps, Fuses, Quills, Matches, Primers .1 41 (b)

Contiguous State Provision .41(a),.105,.126

Distribution, Storage, Possession of Explosive Materials by U.S.
.141(a)(5)

Establishments Owned/Operated by/For the United States
.141(a)(6)

Gasoline, Fertilizers, Propellant Actuated Devices/Tools .141(a)(8)

Importation/Distribution of DOT "Class C" and "Common Fireworks"
.141(a)(7)

Industrial/Laboratory Chemicals .141(a)(9)

Small Arms Ammunition and Components .1 41 (a)(4)

Special Explosive Devices (ATF Approval Required) .32

Transportation, Shipment, Receipt, Importation to the U.S./State Governments
.1 41 (a)(3)

Transportation of Explosive Materials

Regulated by DOT .141(a)(1)

Use of Explosive Materials in Prescribed Medicines/Medicinal Agents
.141(a)(2)

EXPORTATION:.129

FIREWORKS:

Classes of Explosive Materials .202(a),(b)

Daily Summary of Magazine Transactions .127

Location of Magazines .206(b)

Quantity of Explosive Materials.in Process .221

Records-Licensed Dealers .124(b),(c)

Records-Licensed Importers .122(b),(c)

Records-Licensed Manufacturers .1 23(b),(c),(d)

Records-Manufacturers-Limited and Permittees .125

Requirements (Effective 1990 and 1991) .201 (d), (e)

Table of Distances Between Process

Buildings & Nonprocess Buildings .222

Table of Distances Between Process

Buildings & Other Specified Areas .223

Table of Distances For Storage of Special

Fireworks (except bulk salutes) .224

FORMS (Obsolete Numbers in Parentheses)

ATF F 5400.4 (471 0), Explosives Transaction Record .105,.126

ATF F 5400.5 (4712), Report of Theft or Loss of Explosive Materials, .30

ATF F 5400.6 (4709), User-Limited Permit .46(b)

ATF F 5400.8 (4721), Explosives Delivery Record .1 03(a)(4),.105(f) ATF F
5400.9 (4718), Order After Denial or Revocation Hearing .76

ATF F 5400.10 (4717), Notice of Revocation of License or Permit .74

ATF F 5400.11 (4716), Notice of Denial of

Application For License or Permit .72,.74

ATF F 5400.12 (4715), Notice of Contemplated Denial or Revocation of License
or Permit .71

ATF F 5400.13/5400.16, (4705; 4707) Application For License or Permit
.45(a),(b),.46(b)

ATF F 5400.14/5400.15, Part 1(4706, Part 1;

4708, Part 1), License or Permit .46

ATF F 5400.14/5400.15, Part III (4706, Part III; 4708, Part 111), Renewal of
Explosives

License or Permit .46(a)

ATF F 5400.21, Application/Permit User-Limited Special Fireworks .103(e)

Prescribed by Director, ATF .21

Requests For (How to Obtain) .21(c)

GENERAL PROVISIONS:

Alternate methods or procedures .22(a)

Approved Variations, Retention of .22(c)

Daily Summary of Magazine Transactions .30

Disclosures to State/Local Jurisdictions .25

Emergency variations from requirements .22(b)

Explosive Materials, List of (Annual Publication); Availability .23

Forms prescribed by Director, ATF .21(a)

Inspection of Site Accidents/Fires-Right of Entry by ATF .31

Loss of Explosive Materials-Reporting .30,.127

Operations After Notice of Denial or Revocation .83

Out-of-State Disposition of Explosive Materials .27

Prohibited Shipment, Transportation, Receipt of Explosive Materials .26

Public Use Forms (Pub 1322.1) .21 (b)

Record Retention Period is Five Years .121(a)

Reporting Theft or Loss of Explosive Materials to ATF; Toll-Free Number
.30

Requests For Forms (How to Obtain) .21(c)

Right of Entry and Examination .24

Special Explosive Devices-Request For

Exemption .32

Stolen Explosive Materials, Prohibited Transactions In .28

Unlawful Storage .29

Identification of Explosive Materials .109

Law: Relation Between State and Federal .62

LICENSE/PERMIT PROCEEDINGS:

Appeal to Director From Decision .79

Cause For Stay of Adverse Action .76

Certification and Transfer of Hearing Record .73,.75

Compliance Opportunity in Absence of Willful Violation .71

Contemplated Revocation .71

Denial of Initial Application .72

Denial of Renewal .74

Hearing-27 CFR Part 200 Incorporated .82

Hearing-Action on License/Permit After .76

Hearing-After Denial or Revocation .75

Hearing-After Initial Application Denied .73

Hearing-Notices Served .81

Hearing-Revocation .74

Judicial Review .80

Operations After Notice of Denial or Revocation .83

Place of Hearing .77

Representation at Hearing .78

LICENSES/PERMITS:

Additional License, When Not Required .41 (b)(1),(2)

Address, Change of .54

Administrator Carrying on Business .59(a)(1)

Alternate Methods or Procedures .22(a)

Amendment Due to Change in Class of

Explosives; Magazines .55

Black Powder Exception .41(a)(2)

Business Continuance-Right of Succession .59

Cannot be Issued to Person Prohibited From Receiving, etc. .49(b)(2)

Certain Contiguous States-Exception .41 (a)(1)

Change in Trade Name .56

Change of Address .54

Change of Control .57

Continuing Business While License/Permit Being Amended, Etc. .60

Continuing Partnerships (Death of a Partner).58

Correction of Error .50

Dealer's License Not Needed, When .41(b)(3)

Duration .51

Executor Carrying on Business .59(a)(1)

Issuance of .49

License Issued to Manufacturer-Limited Valid For Only 30 Days .46(b)

License-Requirements, Restrictions,

Duration .41(b),.51,.52

Limitations .52

Manufacturer-Limited Licensee-Authorized Operations .102(a),.103(a)

Nonrenewable Licenses and Permits:

Duration of .46(b),.51

Not Transferable .53

Original; Requirements .45

Permit Issued to User-Limited Valid For Single Purchase .46(b)

Permit-Requirements, Restrictions, Duration .41 (b),.51,.52

Permittee-Authorized Operations .102(a)

Posting of .101

Receiver of Trustee in Bankruptcy Situation .59(a)(2)

Recipient to Examine For Accuracy .50 Renewal; Requirements .46(a)

Required To Engage in Business or Activity .41

Sales Up to 45 Days After Expiration .1 03(a)(1)

Separate License Required For Each Business .41(b)

Spouse; Child; Other Legal Representatives Carrying on Business .59(a)(1)

Status Must be Verified Before Sale/Distribution .103(a)(2),(4)

User-Limited Permit-Valid For a Single

Purchase; Nonrenewable .51,.103(e)

Loss or Theft of Explosive Materials Must be Reported to ATF .30,.127

MAGAZINES; STORAGE:

Additional (Constructed or Acquired); ATF

Notification Requirements .63(d),.201

Change in Class of Explosive Materials; Storage Facilities .55

Change in Construction When Change in Class of Explosive Materials .55

Change in Construction-Method/Timing Notification of ATF .63(a)(4),(c)

Change in Construction-§ 55.63 Must be Met Before Use .63(c),.201

Classes of Explosive Materials .202

Considered "Suitable" if Construction and Table of Distances are Met
.63(a)(3)

Federal Standards Confer No Right to Violate State or Other Law .201

FIREWORKS:

Location of Magazines .206(b)

Requirements (Effective 1990 and 1991) .201 (d),(e)

Table of Distances For Storage of Special Fireworks (except bulk salutes)
.224

Location; Inhabited Buildings, Other Explosives, etc. .206,.203,.213

Location; Tables of Distances or Separation .206,.218-.220

Magazine to be Inspected Every 7 Days For Possible Unauthorized Entry
.204

Magazines-Smoking, Flames, Sparks .212,.29

Magazines Used Under 24 Hours are "Temporary" .63(a)(1)

Quantity and Storage Restrictions .213

STORAGE:

Magazine Housekeeping .215

Magazine Repair .216

Magazines; Lighting Within .217

Must be in Accordance With Regulations .201

Must be in Effect For Explosive Materials; Exceptions .205

Table of Distances For Explosive Materials .218

Table of Distances For Low Explosives .219

Table of Separation Distances: Ammonium Nitrate/Blasting Agents From
Explosives .220

Unlawful .29,.212

Within Types 1, 2, 3, and 4 Magazines .214

TYPE:

Type 1 Magazines-Construction, Permanent .207,.206,.213

Type 1 Magazines-Permanent, High Explosives .203(a),.207,.213

Type 2 Magazines-Construction of Detonator Boxes .206,.208(c),.213

Type 2 Magazines-Construction of Indoor; Quantity and Class Limitations
.208(b),.206,.213

Type 2 Magazines-Construction of Outdoor .208(a),.206,.213

Type 2 Magazines-Mobile and Portable, Indoor and Outdoor, High Explosives
.203(b),.208,.213

Type 3 Magazines-Construction of Day Box or Other Portable Magazines
.209,.206,.213

Type 3 Magazines-Portable, "Day Box," Temporary Storage, High Explosives
.203(c),.209,.213

Type 4 Magazines-Construction of Indoor .21 0(b),.211,.213

Type 4 Magazines-Construction of Outdoor .21 0(a),.206,.21

Type 4 Magazines-Low Explosives, Detonators That Will Not Mass Detonate
.203(d),.210,.213

Type 5 Magazines-Blasting Agents .203(e),.211,.213

Type 5 Magazines-Construction of Indoor .206,.21 1 (b),.213

Type 5 Magazines-Construction of Outdoor .206,.21 1 (a),.213

RECORD RETENTION PERIOD IS FIVE YEARS .1 21 (a)

RECORDS AND REPORTS:

DEALERS:

Acquisition or Disposition .124(d)

Alternate Records-Authority For Use .1 24(e)

Distribution to Licensees/Permittees or For Own Use.124(c)

Distribution to Nonlicensees/Nonpermittees .1 24(f),. 1 26

Inventories .124(a),.127

Purchase/Acquisition .124(b)

IMPORTERS:

Alternate Records-Authority For Use .1 22(d)

Distribution to Licensees/Permittees .122(c)

Distribution to Nonlicensees/Nonpermittees .1 22(e)

Importation/Acquisition .122(b)

Inventories .122(a)

MANUFACTURERS:

Alternate Records-Authority For Use .1 23(e)

Distribution to Licensees/Permittees .123(c)

Distribution to Nonlicensees/Nonpermittees .1 23(f)

Inventories .123(a)

Manufacture For Own Use; Exception .1 23(d)

Manufacture/Acquisition .123(b)

MANUFACTURERS-LIMITED:

Disposition of Surplus Stocks to

Licensees/Permittees .125(b)(1)

Disposition of Surplus Stocks to Nonlicensees/Nonpermittees .125(b)(2)

Inventories .125(a)

PERMITTEES:

Acquisition .125(c)

Alternate Records-Authority For Use .1 25(f)

Disposition of Surplus to Licensee/Permittee .125(d)

Disposition of Surplus to Nonlicensees/Nonpermittees .125(e)

Inventories .125(a)

Relation of Part 55 to Other Provisions of Law .2

RELIEF FROM EXPLOSIVES DISABILITY

Any Person May Make Application For .142(a)

Application For, Filed With ATF Director .1 42(b)

Application From Corporation/Officer

Requires Additional Information .142(b)

Application Supported by Data Applicant Considers Appropriate .142(b)

Explosives Licensee/Permittee Under Disability .142

Incurred by Indictment, Information or Conviction .142

May be Granted by the Director; When .1 42(c)

When Granted, Relieved of Disabilities Relative to Explosives Business
.142(d)

Return of Explosive Materials to Manufacturer .1 03(a)(3)

Sope of Regulations .1

Surplus Stocks, Distribution of .102(b),.103(a),(b),.105(d)

Transactions Among Licensees/Permittees .103

UNLAWFUL ACTS; PENALTIES:

Any Explosive Materials Involved in Violation

of Any U.S. Criminal Law .166

Any Person Engaging in Business Without a

License .1 61

Failure to Make Entry in Records .121(c)

Failure to Report Theft or Loss of Explosive

Materials .1 65

False Entry in Record by Any Licensee or

Permittee .163

False Statement or Representation by Any Person .1 62

Knowingly Make False Entry in Records .1 21 (c)

Prohibited Disposition, Distribution, or

Receipt of Explosive Materials .26,.27,.106

Prohibited Persons .26(b),.106(b),(c)

Unlawful Storage by Any Person .164

VARIATIONS FROM PART 55: Approvals-Retention of .22(c)
Alternate Methods .22(a) Emergency .22(b)

Verification of Business Organizations; Individuals .103(b),(c)

-SECTION INDEX TO PART 55-

Subpart A-introduction

Sec.

55.1 Scope of regulations.

55.2 Relation to other provisions of law.

Subpart B-Definitions

55.11 Meaning of terms.

Subpart C-Administrative and Miscellaneous Provisions

55.21 Forms prescribed.

55.22 Alternate methods and procedures; emergency variations from
requirements.

55.23 List of explosive materials.

55.24 Right of entry and examination.

55.25 Disclosure of information.

55.26 Prohibited shipment, transportation, or receipt of
explosive materials.

55.27 Out-of-State disposition of explosive materials.

55.28 Stolen explosive materials.

55.29 Unlawful storage.

55.30 Reporting theft or loss of explosive materials.

55.31 Inspection of site of accidents or fires; right of
entry.

55.32 Special explosive devices.

Subpart D-Licenses and Permits

55.41 General.

55.42 License fees.

55.43 Permit fees.

55.44 License or permit fee not refundable.

55.45 Original license or permit.

55.46 Renewal of license or permit.

55.47 Insufficient fee.

55.48 Abandoned application.

55.49 Issuance of license or permit.

55.50 Correction of error on license or permit.

55.51 Duration of license or permit.

55.52 Limitations on license or permit.

55.53 License and permit not transferable.

55.54 Change of address.

55.55 Change in class of explosive materials.

55.56 Change in trade name.

55.57 Change of control.

55.58 Continuing partnerships.

55.59 Right of succession by certain persons.

55.60 Certain continuances of business or operations.

55.61 Discontinuance of business or operations.

55.62 State or other law.

55.63 Explosives magazine changes.

Subpart E-License and Permit Proceedings

55.71 Opportunity for compliance.

55.72 Denial of initial application.

55.73 Hearing after initial application is denied.

55.74 Denial of renewal application or revocation of license or
permit.

55.75 Hearing after denial of renewal application or revocation of license or
permit.

55.76 Action by regional director (compliance).

55.77 Designated place of hearing.

55.78 Representation at a hearing.

55.79 Appeal on petition to the Director.

55.80 Court review.

55.81 Service on applicant, licensee, or permittee.

55.82 Provisions of Part 200 made applicable.

55.83 Operations by licensees or permittees after notice of
denial or revocation.

Subpart F-Conduct of Business or Operations

55.101 Posting of license or permit.

55.102 Authorized operations by permittees and certain licensees.

55.103 Transactions among licensees/permittees.

55.104 Certified copy of license or permit.

55.105 Distributions to nonlicensees and nonpermittees.

55.106 Certain prohibited distributions.

55.107 Record of transactions.

55.108 Importation.

55.109 Identification of explosive materials.

Subpart G-Records and Reports

55.121 General.

55.122 Records maintained by licensed importers.

55.123 Records maintained by licensed manufacturers.

55.124 Records maintained by licensed dealers.

55.125 Records maintained by licensed manufacturers-limited and
permittees.

55.126 Explosives transaction record.

55.127 Daily summary of magazine transactions.

55.128 Discontinuance of business.

55.129 Exportation.

Subpart H-Exemptions

55.141 Exemptions.

55.142 Relief from disabilities incurred by indictment,
information or conviction.

Subpart 1-Unlawful Acts, Penalties, Seizures, and
Forfeitures

55.161 Engaging in business without a license.

55.162 False statement or representation.

55.163 False entry in record.

55.164 Unlawful storage.

55.165 Failure to report theft or loss.

55.166 Seizure or forfeiture.

Subpart K-Storage

55.201 General.

55.202 Classes of explosive materials.

55.203 Types of magazines.

55.204 Inspection of magazines.

55.205 Movement of explosive materials.

55.206 Location of magazines.

55.207 Construction of type 1 magazines.

55.208 Construction of type 2 magazines.

55.209 Construction of type 3 magazines.

55.210 Construction of type 4 magazines.

55.211 Construction of type 5 magazines.

55.212 Smoking and open flames.

55.213 Quantity and storage restrictions.

55.214 Storage within types 1. 2, 3, and 4 magazines.

55.215 Housekeeping.

55.216 Repair of magazines.

55.217 Lighting.

55.218 Table of distances for storage of explosive materials.

55.219 Table of distances for storage of low explosives.

55.220 Table of separation distances of ammonium nitrate and blasting agents
from explosives or blasting agents.

55.221 Requirements for special fireworks, pyrotechnic compositions, and
explosive materials used in assembling fireworks.

55.222 Table of distances between fireworks process buildings and between
fireworks process and fireworks nonprocess buildings.

55.223 Table of distances between fireworks process buildings and other
specified areas.

55.224 Table of distances for the storage of special fireworks (except bulk
salutes).

AUTHORITY. 18 U.S.C. 847. SOURCE: TD. ATF-87, 46 FR
40384, Aug. 7, 1981, unless otherwise noted.

Subpart A-introduction

§ 55.1 Scope of regulations.

(a) In general. The regulations contained in this
part relate to commerce in explosives and implement Title XI, Regulation of
Explosives (18 U.S.C. Chapter 40; 84 Stat. 952), of the Organized Crime Control
Act of 1970 (84 Stat. 922).

(b) Procedural and substantive requirements. This part
contains the procedural and substantive requirements relative to:

(1) The interstate of foreign commerce in explosive
materials;

(2) The licensing of manufacturers and importers of, and
dealers in, explosive materials;

(3) The issuance of user permits;

(4)The conduct of business by licensees and operations
by permittees;

(5)The storage of explosive materials;

(6)The records and reports required of licensees and
permittees;

(7) Relief from disabilities under this part; and

(8)Exemptions, unlawful acts, penalties, seizures, and
forfeitures.

§ 55.2 Relation to other provisions of law.

The provisions in this part are in addition to, and are not in
lieu of, any other provision of law, or regulations, respecting commerce in
explosive materials. For regulations applicable to commerce in firearms and
ammunition, see Part 178 of this chapter. For regulations applicable to traffic
in machine guns, destructive devices, and certain other firearms, see Part 179
of this chapter. For statutes applicable to the registration and licensing of
persons engaged in the business of manufacturing, importing or exporting arms,
ammunition, or implements of war, see section 38 of the Arms Export Control Act
(22 U.S.C. 2778), and regulations of Part 47 of this chapter and in Parts 121
through 128 of Title 22, Code of Federal Regulations. For statutes applicable to
nonmailable materials, see 18 U.S.C. 1716 and implementing regulations. For
statutes applicable to water quality standards, see 33 U.S.C. 1341.

Subpart B-Definitions

§ 55.11 Meaning of terms.

When used in this part, terms are defined as follows in this section. Words
in the plural form include the singular, and vice versa, and words indicating
the masculine gender include the feminine. The terms "includes" and
"including" do not exclude other things not named which are in the same
general class or are otherwise within the scope of the term defined.

Act. 18 U.S.C. Chapter 40.

Ammunition. Small arms ammunition or cartridge cases, primers,
bullets, or smokeless propellants designed for use in small arms, including
percussion caps, and 3/32 inch and other external burning pyrotechnic hobby
fuses. The term does not include black powder.

Approved storage facility. A place where explosive materials are
stored, consisting of one or more approved magazines, conforming to the
requirements of this part and covered by a license or permit issued under this
part.

Artificial barricade. An artificial mound or revetted wall of earth of
a minimum thickness of three feet, or any other approved barricade that offers
equivalent protection.

ATF officer. An officer or employee of the Bureau of Alcohol, Tobacco
and Firearms (ATF) authorized to perform any function relating to the
administration or enforcement of this part.

Barricaded. The effective screening of a magazine containing explosive
materials from another magazine, a building, a railway, or a highway, either by
a natural barricade or by a artificial barricade. To be properly barricaded, a
straight line from the top of any sidewall of the magazine containing explosive
materials to the eave line of any other magazine or building, or to a point 12
feet above the center of a railway or highway, will pass through the natural or
artificial barricade.

Blasting agent. Any material or mixture, consisting of fuel and
oxidizer, that is intended for blasting and not otherwise defined as an
explosive; if the finished product, as mixed for use or shipment, cannot be
detonated by means of a number 8 test blasting cap when unconfined. A number 8
test blasting cap is one containing 2 grams of a mixture of 80 percent mercury
fulminate and 20 percent potassium chlorate, or a blasting cap of equivalent
strength. An equivalent strength cap comprises 0.40-0.45 grams of PETN base
charge pressed in an aluminum shell with bottom thickness not to exceed 0.03 of
an inch, to a specific gravity of not less than 1.4 g/cc, and primed with
standard weights of primer depending on the manufacturer.

Bulk salutes. Salute components prior to final assembly into aerial
shells, and finished salute shells held separately prior to being packed with
other types of special fireworks.

Bullet-sensitive explosive materials. Explosive materials that can be
exploded by 150-grain M2 ball ammunition having a nominal muzzle velocity of
2700 fps (824 mps) when fired from a .30 caliber rifle at a distance of 100 ft
(30.5 m), measured perpendicular. The test material is at a temperature of 70 to
75 degrees F (21 to 24 degrees C) and is placed against a 112 inch (12.4 mm)
steel backing plate.

Bureau. The Bureau of Alcohol, Tobacco and Firearms, Department of the
Treasury, Washington, DC.

Business premises. When used with respect to a manufacturer, importer,
or dealer, the property on which explosive materials are manufactured, imported,
stored or distributed. The premises include the property where the records of a
manufacturer, importer, or dealer are kept if different than the premises where
explosive materials are manufactured, imported, stored or distributed. When used
with respect to a user of explosive materials, the property on which the
explosive materials are received or stored. The premises includes the property
where the records of the users are kept if different than the premises where
explosive materials are received or stored.

Chief, Firearms and Explosives Licensing Center. The ATF
official responsible for the issuance and renewal of licenses and permits under
this part.

Common fireworks. Any small firework device designed to produce
visible effects by combustion and which must comply with the construction,
chemical composition, and labeling regulations of the U.S. Consumer Product
Safety Commission, as set forth in title 16, Code of Federal Regulations, parts
1500 and 1507. Some small devices designed to produce audible effects are
included, such as whistling devices, ground devices containing 50 mg or less of
explosive materials, and aerial devices containing 130 mg or less of explosive
materials. Common fireworks are classified as Class C explosives by the U.S.
Department of Transportation (DOT). 49 CFR 173.100(r).

Crime punishable by imprisonment for a term exceeding one year.
Any offense for which the maximum penalty, whether or not imposed, is
capital punishment or imprisonment in excess of one year. The term does not
include:

(a) Any Federal or State offenses pertaining to antitrust violations,
unfair trade practices, restraints of trade, or

(b) Any State offense (other than one involving a firearm or
explosive) classified by the laws of the State as a misdemeanor and punishable
by a term of imprisonment of two years or less.

Customs officer. Any officer of the Customs Service or any
commissioned, warrant, or petty officer of the Coast Guard, or any agent or
other person authorized to perform the duties of an officer of the Customs
Service.

Dealer. Any person engaged in the business of distributing explosive
materials at wholesale or retail.

Detonator. Any device containing a detonating charge that is used for
initiating detonation in an explosive. The term includes, but is not limited to,
electric blasting caps of instantaneous and delay types, blasting caps for use
with safety fuses, detonating cord delay connectors, and nonelectric
instantaneous and delay blasting caps.

Director. The Director, Bureau of Alcohol, Tobacco and Firearms.
Department of the Treasury, Washington, DC.

Distribute. To sell, issue, give, transfer, or otherwise dispose of.
The term does not include a mere change of possession from a person to his agent
or employee in connection with the agency or employment.

Executed under penalties of perjury. Signed with the required
declaration under the penalties of perjury as provided on or with respect to the
return, form, or other document or, where no form of declaration is required,
with the declaration:

"I declare under the penalties of perjury that this- (insert type of
document, such as, statement, application, request, certificate), including the
documents submitted in support thereof, has been examined by me and, to the best
of my knowledge and belief, is true, correct, and complete. "

Explosive actuated device. Any tool or special mechanized device which
is actuated by explosives, but not a propellent actuated device.

Explosive materials. Explosives, blasting agents, water gels and
detonators. Explosive materials include, but are not limited to, all items in
the List of Explosive Materials provided for in §
55.23.

Explosives. Any chemical compound, mixture, or device, the primary or
common purpose of which is to function by explosion. The term includes, but is
not limited to, dynamite and other high explosives, black powder, pellet powder,
initiating explosives, detonators, safety fuses, squibs, detonating cord,
igniter cord, and igniters.

Fireworks. Any composition or device designed to produce a visible or
an audible effect by combustion, deflagration, or detonation, and which meets
the definition of "common fireworks" or "special fireworks"
described by U.S. Department of Transportation in 49 CFR 173.88 and
173.100.

Fireworks mixing building. Any building or area used for mixing and
blending pyrotechnic compositions except wet sparkler mix.

Fireworks nonprocess building. Any office building, fireworks plant
warehouse, or other building or area in a fireworks plant where no fireworks,
pyrotechnic compositions or explosive materials are processed or stored.

Fireworks plant. All land and buildings thereon used for or in
connection with the assembly or processing of fireworks, including warehouses
used with or in connection with fireworks plant operations.

Fireworks plant warehouse. Any building or structure used exclusively
for the storage of materials which are neither pyrotechnic compositions nor
explosive materials used to assemble fireworks.

Fireworks process building. Any mixing building; any building in which
pyrotechnic compositions or explosive materials is pressed or otherwise prepared
for finished and assembly; or any finishing or assembly building.

Fireworks shipping building. A building used for the packing of
assorted special fireworks into shipping cartons for individual public displays
and for the loading of packaged displays for shipment to purchasers.

Flash powder. An explosive material intended to produce an audible
report and a flash of light when ignited and typically containing potassium
perchlorate, sulfur or antimony sulfide, and aluminum metal.

Fugitive from justice. Any person who has fled from the jurisdiction
of any court of record to avoid prosecution for any crime or to avoid giving
testimony in any criminal proceeding. The term also includes any person who has
been convicted of any crime and has fled to avoid imprisonment.

Hardwood. Oak, maple, ash, hickory, or other hard wood, free from
loose knots, spaces, or similar defects.

Highway. Any public street, alley, or road. Public highways of class A
to D are highways with an average traffic volume of 3,000 or less vehicles per
day as specified in American Civil Engineering Practice
(Abbett, Vol. 1, Table 46, Section 3-74, 1956 Edition, John Wiley and
Sons).

Importer. Any person engaged in the business of importing or bringing
explosive materials into the United States for purposes of sale or
distribution.

Indictment. Includes an indictment or information in any court under
which a crime punishable by imprisonment for a term exceeding one year may be
prosecuted.

Inhabited building. Any building regularly occupied in
whole or in part as a habitation for human beings, or any church, schoolhouse,
railroad station, store, or other structure where people are accustomed to
assemble, except any building occupied in connection with the manufacture,
transportation, storage, or use of explosive materials.

Interstate or foreign commerce. Commerce between any
place in a State and any place outside of that State, or within any possession
of the United States or the District of Columbia, and commerce between places
within the same State but through any place outside of that State.

Licensed dealer. A dealer licensed under this part.

Licensed importer. An importer licensed under this
part.

Licensed manufacturer. A manufacturer licensed under
this part to engage in the business of manufacturing explosive materials for
purposes of sale or distribution or for his own use.

Licensed manufacturer-limited. A manufacturer licensed
under this part to engage in the business of manufacturing explosive materials
for his own use and not for sale or distribution.

Licensee. Any importer, manufacturer, or dealer licensed
under this part.

Magazine. Any building or structure, other than an
explosives manufacturing building, used for storage of explosive materials.

Manufacturer. Any person engaged in the business of
manufacturing explosive materials for purposes of sale or distribution or for
his own use.

Manufacturer-limited. Any person engaged in the business
of manufacturing explosive materials for his own use and not for sale or
distribution.

Mass detonation (mass explosion). Explosive materials
mass detonate (mass explode) when a unit or any part of a larger quantity of
explosive material explodes and causes all or a substantial part of the
remaining material to detonate or explode.

Natural barricade. Natural features of the ground, such
as hills, or timber of sufficient density that the surrounding exposures which
require protection cannot be seen from the magazine when the trees are bare of
leaves.

Number 8 test blasting cap. (See definition of
"blasting agent.")

Permittee. Any user of explosives for lawful purpose,
who has obtained a user permit under this part.

Person. Any individual, corporation, company,
association, firm, partnership, society, or joint stock company.

Plywood. Exterior, construction grade (laminated wood)
plywood.

Propellant actuated device. Any tool or special
mechanized device or gas generator system which is actuated by a propellant or
which releases and directs work through a propellant charge.

Pyrotechnic compositions. A chemical mixture which, upon
burning and without explosion, produces visible, brilliant displays, bright
lights, or sounds.

Railway. Any steam, electric, or other railroad or
railway which carries passengers for hire.

Region. A geographical region of the Bureau of Alcohol,
Tobacco and Firearms.

Regional director (compliance). The principal regional
official responsible for administering regulations in this part.

Salute. An aerial shell, classified as a special
firework, that contains a charge of flash powder and is designed to produce a
flash of light and a loud report as the pyrotechnic effect.

Screen barricade. Any barrier that will contain the
embers and debris from a fire or deflagration in a process building, thus
preventing propagation of fire to other buildings or areas. Such barriers shall
be constructed of metal roofing, 1/4 to Ib inch (6 to 13 mm) mesh screen, or
equivalent material. The barrier extends from floor level to a height such that
a straight line from the top of any side wall of the donor building to the eave
line of any exposed building intercepts the screen at a point not less than 5
feet (1.5 m) from the top of the screen. The top 5 feet (1.5 m) of the screen is
inclined towards the donor building at an angle of 30 to 45 degrees.

Softwood. 1:ir, pine, or other soft wood, free from
loose knots, spaces, or similar defects.

Special fireworks. Large fireworks designed primarily to
produce visible or audible effects by combustion, deflagration, or detonation.
This term includes, but is not limited to, salutes containing more than 2 grains
(130 mg) of explosive materials, aerial shells containing more than 40 grams of
pyrotechnic compositions, and other display pieces which exceed the limits of
explosive materials for classification as "common fireworks." Special
fireworks are classified as Class B explosives by the U.S. Department of
Transportation. 49 CFR 173.88(d).

State. A State of the United States. The term includes
the District of Columbia, the Commonwealth of Puerto Rico, and the possessions
of the United States.

State of residence. The State in which an individual
regularly resides or maintains his home. Temporary stay in a State does not make
the State of temporary stay the State of residence.

U.S.C. The United States Code.

User-limited permit. A user permit valid only for a
single purchase transaction, a new permit being required for a subsequent
purchase transaction.

User permit. A permit issued to a person authorizing
him:

(a) To acquire for his own use explosive materials from
a licensee in a State other than the State in which he resides or from a foreign
country, and

(b) To transport explosive materials in interstate or
foreign commerce.

Water gels. Explosives or blasting agents that contain a
substantial proportion of water.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226)
[Amended by TD. ATF-92, 46 FR 46916, Sept. 23, 1981; TD. ATF-200, 50 FR 10497,
Mar 15, 1985; TD. ATF-290, 54 FR 53053, Dec. 27, 1989; TD. ATF-293, 55 FR 3720,
Feb. 5, 1990]

Subpart C-Administrative and Miscellaneous Provisions

§ 55.21 Forms prescribed.

(a) The Director is authorized to prescribe all forms
required by this part. All of the information called for in each form shall be
furnished as indicated by the headings on the form and the instructions on or
pertaining to the form. In addition, information called for in each form shall
be furnished as required by this part.

(b) Public Use Forms (ATF Publication 1322.1), is
a numerical listing of forms issued or used by the Bureau of Alcohol, Tobacco
and Firearms. This publication is available from the Superintendent of
Documents, U.S. Government Printing Office, Washington, D.C. 20402.

(c) Requests for forms should be mailed to the ATF
Distribution Center, 7943 Angus Court, Springfield, Virginia 22153.

[Amended by TD. ATF-92, 46 FR 46916, Sept. 23, 1981; TD.

ATF-249, 52 FR 5961, Feb. 27, 1987]

§ 55.22 Alternate methods or procedures; emergency
variations from requirements.

(a) Alternate methods or procedures. The permittee or
licensee, on specific approval by the Director as provided by this paragraph,
may use an alternate method or procedure in lieu of a method or procedure
specifically prescribed in this part. The Director may approve an alternate
method or procedure, subject to stated conditions, when he finds that:

(1) Good cause is shown for the use of the alternate
method or procedure;

(2) The alternate method or procedure is within the
purpose of, and consistent with the effect intended by, the specifically
prescribed method or procedure and that the alternate method or procedure is
substantially equivalent to that specifically prescribed method or procedure;
and

(3)The alternate method or procedure will not be contrary to any
provision of law and will not result in an increase in cost to the Government or
hinder the effective administration of this part.

Where the permittee or licensee desires to employ an alternate method or
procedure, he shall submit a written application to the regional director
(compliance), for transmittal to the Director. The application shall
specifically describe the proposed alternate method or procedure and shall set
forth the reasons for it. Alternate methods or procedures may not be employed
until the application is approved by the Director. The permittee or licensee
shall, during the period of authorization of an alternate method or procedure,
comply with the terms of the approved application. Authorization of any
alternate method or procedure may be withdrawn whenever, in the judgment of the
Director, the effective administration of this part is hindered by the
continuation of the authorization. As used in this paragraph, alternate methods
or procedures include alternate construction or equipment.

(b) Emergency variations from requirements. The Director may approve
construction, equipment, and methods of operation other than as specified in
this part, where he finds that an emergency exists and the proposed variations
from the specified requirements are necessary and the proposed variations:

(1) Will afford security and protection that are substantially
equivalent to those prescribed in this part;

(2) Will not hinder the effective administration of this part; and

(3) Will not be contrary to any provisions of law.

Variations from requirements granted under this paragraph are conditioned on
compliance with the procedures, conditions, and limitations set forth in the
approval of the application. Failure to comply in good faith with the
procedures, conditions, and limitations shall automatically terminate the
authority for the variations and the licensee or permittee shall fully comply
with the prescribed requirements of regulations from which the variations were
authorized.

Authority for any variation may be withdrawn whenever, in the judgment of the
Director, the effective administration of this part is hindered by the
continuation of the variation. Where the licensee or permittee desires to employ
an emergency variation, he shall submit a written application to the regional
director (compliance) for transmittal to the Director. The application shall
describe the proposed variation and set forth the reasons for it.

Variations may not be employed until the application is
approved, except when the emergency requires immediate action to correct a
situation that is threatening to life or property. Corrective action may then be
taken concurrent with the filing of the application and notification of the
Director via telephone.

(c)Retention of approved variations. The licenseeor permittee shall
retain, as part of his

records available for examination by ATF officers, any application approved
by the Director under this section.

§ 55.23 List of explosive materials.

The Director shall compile a list of explosive materials, which
shall be published and revised at least annually in the Federal
Register. The List of Explosive Materials (ATF
Publication 5400.8), is available at no cost upon request from the ATF
Distribution Center, 7943 Angus Court, Springfield, Virginia 22153.

[Amended by TD. ATF-92, 46 FR 46916, Sept. 23, 1981;
TD.ATF-290, 54 FR 53054, Dec. 27, 1989]

§ 55.24 Right of entry and examination.

Any ATF officer may enter during business hours the premises,
including places of storage, of any licensee or permittee for the purpose of
inspecting or examining any records or documents required to be kept under this
part, and any explosive materials kept or stored at the premises.

§ 55.25 Disclosure of information.

Upon receipt of written request from any State or any political
subdivision of a State, the regional director (compliance) may make available to
the State or political subdivision any information which the regional director
(compliance) may obtain under the Act with respect to the identification of
persons within the State or political subdivision, who have purchased or
received explosive materials, together with a description of the explosive
materials.

§ 55.26 Prohibited shipment, transportation, or
receipt of explosive materials.

(a) No person, other than a licensee or permiftee, shall
transport, ship, cause to be transported, or receive in interstate or foreign
commerce any explosive materials. This paragraph does not apply to:

(1) The transportation, shipment, or receipt of
explosive materials by a nonlicensed person or nonpermittee who lawfully
purchases explosive materials from a licensee in a State contiguous to the
purchaser's State of residence if:

(i) The purchaser's State of residence has enacted
legislation, currently in force, specifically

authorizing a resident of that State to purchase explosive
materials in a contiguous State,

(ii) The provisions of § 55.105(c) are fully complied
with, and

(iii) The purchaser is not otherwise prohibited under
paragraph (b) of this section from shipping or transporting explosive materials
in interstate or foreign commerce or receiving explosive materials which have
been shipped or transported in interstate or foreign commerce; or,

(2) The lawful purchase by a nonlicensee or nonpermittee
of commercially manufactured black powder in quantities not to exceed 50 pounds,
if the black powder is intended to be used solely for sporting, recreational, or
cultural purposes in antique firearms as defined in 18 U.S.C. 921 (a)(1 6), or
in antique devices as exempted from the term "destructive device" in 18
U.S.C. 921(a)(4).

(b) No person may ship or transport any explosive
material in interstate or foreign commerce or receive any explosive materials
which have been shipped or transported in interstate or foreign commerce
who:

(1) Is under indictment or information for, or who has
been convicted in any court of, a crime punishable by imprisonment for a term
exceeding one year,

(2) Is a fugitive from justice,

(3) Is an unlawful user of or addicted to marjuana, or any depressant
or stimulant drug, or narcotic drug (as these terms are defined in the
Controlled Substances Act; 21 U.S.C. 802), or

(4) Has been adjudicated as a mental defective or has been committed
to a mental institution. [Amended by TD. ATF-293, 55 FR 3721, Feb. 5, 1990]

§ 55.27 Out-of-State disposition of explosive materials.

No nonlicensee or nonpermittee shall distribute any explosive materials to
any other nonlicensee or nonpermittee who the distributor knows or has
reasonable cause to believe does not reside in the State in which the
distributor resides.

§ 55.28 Stolen explosive materials.

No person shall receive, conceal, transport, ship, store,
barter, sell, or dispose of any stolen explosive materials knowing or having
reasonable cause to believe that the explosive materials were stolen.

§ 55.29 Unlawful storage.

No person shall store any explosive materials in a

manner not in conformity with this part.

§ 55.30 Reporting theft or loss of explosive materials.

(a) Any licensee or permittee who has knowledge of the theft or loss
of any explosive materials from his

stock shall, within 24 hours of discovery, report the theft or
loss by telephoning 800-424-9555 (nationwide toll free number) and on ATF F
5400.5 (formerly Form 4712) in accordance with the instructions on the form.
Theft or loss of any explosive materials shall also be reported to appropriate
local authorities.

(b) Any other person, except a carrier of explosive
materials, who has knowledge of the theft or loss of any explosive materials
from his stock shall, within 24 hours of discovery, report the theft or loss by
telephoning 800-424-9555 (nationwide toll free number) and in writing to the
nearest ATF office. Theft or loss shall be reported to appropriate local
authorities.

(c) Reports of theft or loss of explosive materials
under paragraphs (a) and (b) of this section must include the following
information, if known:

(1) The manufacturer or brand name.

(2) The manufacturer's marks of identification (date and
shift code).

(3) Quantity (applicable quantity units, such as pounds
of explosives, number of detonators, etc.).

(4) Description (dynamite, blasting agents, detonators,
etc.).

(5) Size (length and diameter).

(d) A carrier of explosive materials who has knowledge
of the theft or loss of any explosive materials shall, within 24 hours of
discovery, report the theft or loss by telephoning 800-424-9555 (nationwide toll
free number). Theft or loss shall also be reported to appropriate local
authorities. Reports of theft or loss of explosive materials by carriers shall
include the following information, if known:

(1) The manufacturer or brand name.

(2) Quantity (applicable quantity units, such as pounds
of explosives, number of detonators, etc.).

(3) Description (Class A, B, or C explosives, or
nitrocarbo-nitrates, as classified by the U.S. Department of Transportation in
the Hazardous Materials Table).

§ 55.31 Inspection of site accidents or fires; right
of entry.

Any ATF officer may inspect the site of any accident or fire in
which there is reason to believe that explosive materials were involved. Any ATF
officer may enter into or upon any property where explosive materials have been
used, are suspected of having been used, or have been found in an otherwise
unauthorized location.

§ 55.32 Special explosive devices.

The Director may exempt certain explosive actuated devices, explosive
actuated tools, or similar devices from the requirements of this part. A person
who desires to obtain an exemption under this section for any special explosive
device, which as designed does not constitute a public safety or security
hazard, shall submit a written request to the Director. Each request shall be
executed under the penalties of perjury and contain a complete and accurate
description of the device, the name and address of the manufacturer or importer,
the purpose of and use for which it is intended, and any photographs, diagrams,
or drawings as may be necessary to enable the Director to make a determination.
The Director may require that a sample of the device be submitted for
examination and evaluation. If it is not possible to submit the device, the
person requesting the exemption shall advise the Director and designate the
place where the device will be available for examination and evaluation.

Subpart D-Licenses and Permits

§ 55.41 General.

(a) Each person intending to engage in business as an importer or
manufacturer of, or a dealer in, explosive materials, including black powder,
shall, before commencing business, obtain the license required by this subpart
for the business to be operated. Each person who intends to acquire for use
explosive materials from a licensee in a State other than the State in which he
resides, or from a foreign country, or who intends to transport explosive
materials in interstate or foreign commerce, shall obtain a permit under this
subpart;

Except that it is not necessary to obtain a permit if the user intends
to lawfully purchase:

(1) Explosive materials from a licensee in a State contiguous to the
user's State of residence and the user's State of residence has enacted
legislation, currently in force, specifically authorizing a resident of that
State to purchase explosive materials in a contiguous State, or

(2) Commercially manufactured black powder in quantities not to exceed
50 pounds, intended to be used solely for sporting, recreational, or cultural
purposes in antique firearms or in antique devices.

(b) Each person intending to engage in business as an explosive
materials importer, manufacturer, or dealer shall file an application, with the
required fee (see § 55.42), with ATF in accordance with the instructions on the
form (see § 55.45). A license shall, subject to law, entitle the licensee to
transport, ship, and receive explosive materials in interstate or foreign
commerce, and to engage in the business specified by the license, at the
location described on the license (and in the case of a licensed manufacturer,
on site within the same region), for the period stated on the license. A
separate license must be obtained for each business premises at which the
applicant is to manufacture, import, or distribute explosive materials; except
under the following circumstances:

(1) A separate license shall not be required for storage facilities
operated by the licensee as an integral part of one business premises or to
cover alocation used by the licensee solely for maintaining the records required
by this part.

(2) A separate license shall not be required of a licensed
manufacturer with respect to his on-site manufacturing within the same
region.

(3) It shall not be necessary for a licensed importer or a licensed
manufacturer (for purposes of sale or distribution) to also obtain a dealer's
license in order to engage in business on his licensed premises as a dealer in
explosive materials.

(c) Except as provided in paragraph (a) of this section, each person
intending to acquire explosive materials from a licensee in a State other than a
State in which he resides, or from a foreign country, or who intends to
transport explosive materials in interstate or foreign commerce, shall file an
application, with the required fee (see § 55.43), with ATF in accordance with
the instructions on the form (see § 55.45). A permit shall, subject to law,
entitle the permittee to acquire, transport, ship, and receive in interstate or
foreign commerce explosive materials of the class authorized by this permit.
Only one permit is required under this part.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[Amended by TD. ATF-200, 50 FR 10497, Mar 15, 1985]

§ 55.42 License fees.

(a) Each applicant shall pay a fee for obtaining a license, a separate
fee being required for each business premises, as follows:

(1) Manufacturer-$50.

(2) Manufacturer-limited (nonrenewable)-$5.

(3) Importer-$50.

(4) Dealer-$20.

(b) Each applicant for a renewal of a license shall pay a fee for a
three year license as follows:

(1) Manufacturer-$25.

(2) Importer-$25.

(3) Dealer-$l 0.

§ 55.43 Permit fees.

(a) Each applicant shall pay a fee for obtaining a
permit as follows:

(1) User-$20.

(2) User-limited (nonrenewable)-$2.

(b) Each applicant for a renewal of a user permit shall pay a fee of
$10 for a three year permit.

§ 55.44 License or permit fee not refundable.

No refund of any part of the amount paid as a license or permit fee will be
made where the operations of the licensee or permittee are, for any reason,
discontinued during the period of an issued license or permit. However, the
license or permit fee submitted with an application for a license or permit will
be refunded if that application is denied, withdrawn, or abandoned, or if a
license is cancelled subsequent to having been issued through administrative
error.

§ 55.45 Original license or permit.

(a) Any person who intends to engage in business as an explosive
materials importer, manufacturer, or dealer, or who has not timely submitted
application for renewal of a previous license issued under this part, shall file
with ATF an application for an explosive license on ATF F 5400.13/5400.16 with
ATF in accordance with the instructions on the form. The application must be
executed under the penalties of perjury and the penalties imposed by 18 U.S.C.
844(a).

The application is to be accompanied by the appropriate fee in the form of a
money order or check made payable to the Bureau of Alcohol, Tobacco and
Firearms. ATF F 5400.13/5400.16 may be obtained from any ATF office.

(b) Any person, except as provided in § 55.41 (a), who intends to
acquire explosive materials from a licensee in a State other than the State in
which that person resides, or from a foreign country, or who intends to
transport explosive materials in interstate or foreign commerce, or who has not
timely submitted application for renewal of a previous permit issued under this
part, shall file an application for an explosives permit on ATF F
5400.13/5400.16 with ATF in accordance with the instructions on the form. The
application must be executed under the penalties of perjury and the penalties
imposed by 18 U.S.C. 844(a).

The application is to be accompanied by the appropriate fee in the form of a
money order or check made payable to the Bureau of Alcohol, Tobacco and
Firearms. ATF F 5400.13/5400.16 may be obtained from any ATF office.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226)) [Amended by TD.
ATF-200, 50 FR 10497, Mar. 15, 1985]

§ 55.46 Renewal of license or permit.

(a) If a licensee or permittee intends to continue the business or
operation described on a license or permit issued under this part after the
expiration date of the license or permit, he shall, unless otherwise notified in
writing by the Chief, Firearms and Explosives Licensing Center, execute and file
prior to the expiration of his license or permit an application for license
renewal, or an application for permit renewal, on ATF F 5400.14/5400.15 (Part
111), accompanied by the required fee, with ATF in accordance with the
instructions on the form.

In the event the licensee or permittee does not timely file a renewal
application, he shall file an original application as required by § 55.45, and
obtain the required license or permit in order to continue business or
operations.

(b) A license issued to a manufacturer-limited is not renewable and is
only valid for 30 days from the date of issuance. A user-limited permit is not
renewable and is valid for a single purchase transaction. All applications for
manufacturer-limited licenses or user-limited permits must be filed on ATF F
5400.13/ATF F 5400.16, as required by § 55.45.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
[Amended by TD. ATF-200, 50 FR 10497, Mar. 15, 1985; TD. ATF-290,
54 FR 53053, Dec. 27, 1989]

§ 55.47 Insufficient fee.

If an application is filed with an insufficient fee, the application and fee
submitted will be returned to the applicant.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
[Amended by TD. ATF-200, 50 FR 10498, Mar. 15, 19851

§ 55.48 Abandoned application.

Upon receipt of an incomplete or improperly executed
application, the applicant will be notified of the deficiency in the
application. If the application is not corrected and returned within 30 days
following the date of notification, the application will be considered as having
been abandoned and the license or permit fee returned.

§ 55.49 Issuance of license or permit.

(a) The Chief, Firearms and Explosives Licensing Center, shall issue a
license or permit if:

(1) A properly executed application for the licenseor permit is
received, and (2)Through further inquiry or investigation, or otherwise,
it is found that the applicant is entitled to the license or permit.

The license or permit will be forwarded to the applicant. Each license or
permit will bear a serial number and, except in the case of a nonrenewable
license or permit (see §§ 55.42 and 55.43), this number may be assigned to the
licensee or permittee to whom issued for as long as he maintains continuity of
renewal in the same region.

(b) The Chief, Firearms and Explosives Licensing Center, shall approve
a properly executed application for a license or permit, if:

(1) The applicant is 21 years of age or over;

(2) The applicant (including, in the case of a corporation,
partnership, or association, any individual possessing, directly or indirectly,
the power to direct or cause the direction of the management and policies of the
corporation, partnership, or association) is not a person to whom distribution
of explosive materials is prohibited under the Act;

(3) The applicant has not willfully violated any provisions of the Act
or this part;

(4) The applicant has not knowingly withheld information or has not
made any false or fictitious statement intended or likely to deceive, in
connection with his application;

(5) The applicant has in a State, premises from which he conducts
business or operations subject to license or permit under the Act or from which
he intends to conduct business or operations;

(6) The applicant has storage for the class (as described in § 55.202)
of explosive materials described on the application, unless he establishes to
the satisfaction of the regional director (compliance) that the business or
operations to be conducted will not require the storage of explosive
materials.

(7) The applicant has certified in writing that he is familiar with
and understands all published State laws and local ordinances relating to
explosive materials for the location in which he intends to do business; and

(8) The applicant for a license has submitted the certificate required
by section 21 of the Federal Water Pollution Control Act, as amended (33 U.S.C.
1341).

(c) The Chief, Firearms and Explosives Licensing Center, shall approve
or the regional director (compliance) shall deny any application for a license
or permit within the 45-day period beginning on the date a properly executed
application was received.

However, when an applicant for license or permit renewal is a person who is,
under the provisions of § 55.83 or § 55.142, conducting business or operations
under a previously issued license or permit, action regarding the application
will be held in abeyance pending the completion of the proceedings against the
applicant's existing license or permit, or renewal application, or final action
by the Director on an application for relief submitted under § 55.142, as the
case may be.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226)) [Amended by TD.
ATF-200, 50 FR 10498, Mar. 15, 1985; TD. ATF-290, 54 FR 53054, Dec. 27,
1989]

§ 55.50 Correction of error on license or permit. (a) Upon
receipt of a license or permit issued under this part, each licensee or
permittee shall examine the license or permit to insure that the information on
it is accurate.

If the license or permit is incorrect, the licensee or permittee shall return
the license or permit to the Chief, Firearms and Explosives Licensing Center,
with a statement showing the nature of the error The Chief, Firearms and
Explosives Licensing Center, shall correct the error, if the error was made in
his office, and return the license or permit.

However, if the error resulted from information contained in the licensee's
or permittee's application for the license or permit, the Chief, Firearms and
Explosives Licensing Center, shall require the licensee or permittee to file an
amended application setting forth the correct information and a statement
explaining the error contained in the application. Upon receipt of the amended
application and a satisfactory explanation of the error, the Chief, Firearms and
Explosives Licensing Center, shall make the correction on the license or permit
and return it to the licensee or permittee.

(b) When the Chief, Firearms and Explosives Licensing Center, finds
through any means other than notice from the licensee or permittee that an
incorrect license or permit has been issued:

(1) The Chief, Firearms and Explosives Licensing Center, may require
the holder of the incorrect license or permit to return the license or permit
for correction, and

(2) If the error resulted from information contained in the licensee's
or permittee's application for the license or permit, the Chief, Firearms and
Explosives Licensing Center, shall require the licensee or permittee to file an
amended application setting forth the correct information, and a statement
satisfactorily explaining the error contained in the application. The Chief,
Firearms and Explosives Licensing Center, then shall make the correction on the
license or permit and return it to the licensee or permittee.

[Amended by ID. ATF-290, 54 FR 53054, Dec. 27, 19891

§ 55.51 Duration of license or permit.

An original license or permit is issued for a period of one
year. A renewal license or permit is issued for a period of three years.
However, a manufacturer-limited license is issued for a period of 30 days and a
user-limited permit is valid only for a single purchase transaction.

§ 55.52 Limitations on license or permit.

(a) The license covers the business and class (as described in §
55.202) of explosive materials specified in the license at the licensee's
business premises (see § 55.41(b)).

(b) The permit is valid with respect to the type of operations and
class (as described in § 55.202) of

explosive materials specified in the permit.

§ 55.53 License and permit not transferable.

Licenses and permits issued under this part are not
transferable to another person. In the event of the lease, sale, or other
transfer of the business or operations covered by the license or permit, the
successor must obtain the license or permit required by this part before
commencing business or operations. However, for rules on right of succession,
see § 55.59.

§ 55.54 Change of address.

During the term of a license or permit, a licensee or permittee
may move his business or operations to a new address at which he intends to
regularly carry on his business or operations, without procuring a new license
or permit. However, in every case, the licensee or permittee shall:

(a) Give notification of the new location of the
business or operations to the Chief, Firearms and Explosives Licensing Center at
least 1 0 days before the move; and

(b) Submit the license or permit to the Chief, Firearms
and Explosives Licensing Center. The Chief, Firearms and Explosives Licensing
Center will issue an amended license or permit, which will contain the new
address (and new license or permit number, if any).

[Amended by T.D. ATF-290, 54 FR 53054,
Dec. 27, 1989]

§ 55.55 Change in class of explosive materials.

A licensee or permittee who intends to change the class of
explosive materials described in his license or permit from a lower to a higher
classification (see § 55.202) shall file an application on ATF F 5400.13/5400.16
with the Chief, Firearms and Explosives Licensing Center for an amended license
or permit. If the change in class of explosive materials would require a change
in magazines, the amended application must include a description of the type of
construction as prescribed in this part. Business or operations with respect to
the new class of explosive materials may not be commenced before issuance of the
amended license or amended permit. Upon receipt of the amended license or
amended permit, the licensee or permittee shall submit his superseded license or
superseded permit and any copies furnished with the license or permit to the
Chief, Firearms and Explosives Licensing Center.

[Amended by TD. ATF-290, 54 FR 53053, Dec. 27, 1989]

.§ 55.56 Change in trade name.

A licensee or permittee continuing to conduct business or operations
at the location shown on his

license or permit is not required to obtain a new license or
permit by reason of a mere change in trade name under which he conducts his
business or operations. However, the licensee or permittee shall furnish his
license or permit and any copies furnished with the license or permit for
endorsement of the change to the Chief, Firearms and Explosives Licensing
Center, within 30 days from the date the licensee or permittee begins his
business or operations under the new trade name. [Amended by TD. ATF-290, 54 FR
53054, Dec. 27, 1989]

§ 55.57 Change of control.

In the case of a corporation or association holding a license
or permit under this part, if actual or legal control of the corporation or
association changes, directly or indirectly, whether by reason of change in
stock ownership or control (in the corporation holding a license or permit or in
any other corporation), by operation of law, or in any other manner, the
licensee or permittee shall, within 30 days of the change, give written
notification executed under the penalties of perjury, to the Chief, Firearms and
Explosives Licensing Center. Upon expiration of the license or permit, the
corporation or association shall file an ATF F 5400.13/5400.16 as required by §
55.45, and pay the fee prescribed in § 55.42(b) or in § 55.43(b). [Amended by
TD. ATF-290, 54 FR 53054, Dec. 27, 1989]

§ 55.58 Continuing partnerships.

Where, under the laws of the particular State, the partnership
is not terminated on death or insolvency of a partner, but continues until the
winding up of the partnership affairs is completed, and the surviving partner
has the exclusive right to the control and possession of the partnership assets
for the purpose of liquidation and settlement, the surviving partner may
continue to conduct the business or operations under the license or permit of
the partnership. If the surviving partner acquires the business or operations on
completion of settlement of the partnership, he shall obtain a license or permit
in his own name from the date of acquisition, as provided in § 55.45. The rule
set forth in this section will also apply where there is more than one surviving
partner.

§ 55.59 Right of succession by certain persons. (a)
Certain persons other than the licensee or permittee may secure the right to
carry on the same explosive materials business or operations at the same
business premises for the remainder of the term of license or permit. These
persons are:

(1) The surviving spouse or child, or executor,
administrator, or other legal representative of a deceased licensee or
permittee; and

(2) A receiver or trustee in bankruptcy. or an assignee
for benefit of creditors.

(b) In order to secure the right of succession, the
person or persons continuing the business or operations shall submit the license
or permit and all copies furnished with the license or permit for endorsement of
the succession to the Chief, Firearms and Explosives Licensing Center, within 30
days from the date on which the successor begins to carry on the business or
operations. [Amended by TD. ATF-290, 54 FR 53054, Dec. 27, 19891

§ 55.60 Certain continuances of business or
operations.

A licensee or permittee who furnishes his license or permit to
the Chief, Firearms and Explosives Licensing Center, for correction, amendment,
or endorsement, as provided in this subpart, may continue his business or
operations while awaiting its return.

[Amended by TD. ATF-290, 54 FR 53054, Dec. 27, 1989]

§ 55.61 Discontinuance of business or operations.

Where an explosive materials business or operations is either
discontinued or succeeded by a new owner, the owner of the business or
operations discontinued or succeeded shall, within 30 days, furnish notification
of the discontinuance or succession and submit his license or permit and any
copies furnished with the license or permit to the Chief, Firearms and
Explosives Licensing Center. (See also § 55.128.)

[Amended by TD. ATF-290, 54 FR 53054, Dec. 27, 19891

§ 55.62 State or other law.

A license or permit issued under this part confers no
right or privilege to conduct business or operations, including storage,
contrary to State or other law. The holder of a license or permit issued under
this part is not, by reason of the rights and privileges granted by that license
or permit, immune from punishment for conducting an explosive materials business
or operations in violation of the provisions of any State or other law.
Similarly, compliance with the provisions of any State or other law affords no
immunity under Federal law or regulations.

§ 55.63 Explosives magazine changes.

(a) General.

(1) The requirements of this section are applicable to magazines used
for other than temporary (under 24 hours) storage of explosives.

(2) A magazine is considered suitable for the storage of explosives if
the construction require-

ments of this part are met during the time explosives are stored in the
magazine.

(3) A magazine is considered suitable for the storage of explosives if
positioned in accordance with the applicable table of distances as specified in
this part during the time explosives are stored in the magazine.

(4) For the purposes of this section, notification of the regional
director (compliance) may be by telephone or in writing. However, if
notification of the regional director (compliance) is in writing it must be at
least three business days in advance of making changes in construction to an
existing magazine or constructing a new magazine, and at least five business
days in advance of using any reconstructed magazine or added magazine for the
storage of explosives.

(b) Exception. Mobile or portable type 5 magazines are exempt from the
requirements of para-

graphs (c) and (d) of this section, but must otherwise be in compliance with
paragraphs (a)(2) and (3) of this section during the time explosives are stored
in such magazines.

(c) Changes in magazine construction. A licensee or permittee who
intends to make changes in construction of an existing magazine shall notify the
regional director (compliance) describing the proposed changes prior to making
any changes. Unless otherwise advised by the regional director (compliance),
changes in construction may commence after explosives are removed from the
magazine. Explosives may not be stored in a reconstructed magazine before the
regional director (compliance) has been notified in accordance with paragraph
(a)(4) of this section that the changes have been completed.

(d) Additional magazines. A licensee or permittee who intends to
construct or acquire additional magazines shall notify the regional director
(compliance) in accordance with paragraph (a)(4) of this section describing the
additional magazines and the class and quantity of explosives to be stored in
the magazine.

Unless otherwise advised by the regional director (compliance), additional
magazines may be constructed, or acquired magazines may be used for the storage
of explosives. Explosives must not be stored in a magazine under construction.
The regional director (compliance) must be notified that construction has been
completed.

Subpart E-License and Permit Proceedings

§ 55-71 Opportunity for compliance.

Except in cases of willfulness or those in which the public
interest requires otherwise, and the regional director (compliance) so alleges
in the notice of denial of an application or revocation of a license or permit,
no license or permit will be revoked or renewal application denied without first
calling to the attention of the licensee or permiftee the reasons for the
contemplated action and affording him an opportunity to demonstrate or achieve
compliance with all lawful requirements and to submit facts, arguments, or
proposals of adjustment.

The notice of contemplated action, ATF F 5400.12, will afford
the licensee or permittee 15 days from the date of receipt of the notice to
respond. If no response is received within the 15 days, or if after
consideration of relevant matters presented by the licensee or permittee, the
regional director (compliance) finds that the licensee or permittee is not
likely to abide by the law and regulations, he will proceed as provided in §
55.74.

§ 55.72 Denial of initial application.

Whenever the regional director (compliance) has reason to believe that an
applicant for an original license or permit is not eligible to receive a license
or permit under the provisions of § 55.49, he shall issue a notice of denial on
ATF F 5400.1 1.

The notice will set forth the matters of fact and law relied upon in
determining that the application should be denied, and will afford the applicant
15 days from the date of receipt of the notice in which to request a hearing to
review the denial. If no request for a hearing is filed within that time, a copy
of the application, marked "Disapproved", will be returned to the
applicant.

§ 55-73 Hearing after initial application is denied.

If the applicant for an original license or permit desires a hearing, he
shall file a request with the regional director (compliance) within 15 days
after receipt of the notice of denial. The request should include a statement of
the reasons for a hearing. On receipt of the request, the regional director
(compliance) shall refer the matter to an administrative law judge who shall set
a time and place (see § 55.77) for a hearing and shall serve notice of the
hearing upon the applicant and the regional director (compliance) at least 1 0
days in advance of the hearing date.

The hearing will be conducted in accordance with the hearing procedures
prescribed in Part 200 of this chapter (see § 55.82). Within a reasonable time
after the conclusion of the hearing, and as expeditiously as possible, the
administrative law judge shall render his recommended decision. He shall certify
to the complete record of the proceedings before him and shall immediately
forward the complete certified record, together with four copies of his
recommended decision, to the regional director (compliance) for decision.

§ 55.74 Denial of renewal application or revocation of license or
permit.

If following the opportunity for compliance under § 55.71, or without
opportunity for compliance under § 55.71, as circumstances warrant, the regional
director (compliance) finds that the licensee or permittee is not likely to
comply with the law or regulations or is otherwise not eligible to continue
operations authorized under his license or permit, the regional director
(compliance) shall issue a notice of denial of the renewal application or
revocation of the license or permit, ATF F 5400.11 or ATF F 5400.1 0, as
appropriate.

In either case, the notice will set forth the matters of fact constituting
the violations specified, dates, places, and the sections of law and regulations
violated. The notice will, in the case of revocation of a license or permit,
specify the date on which the action is effective, which date will be on or
after the date the notice is served on the licensee or permittee. The notice
will also advise the licensee or permittee that he may, within 15 days after
receipt of the notice, request a hearing and, if applicable, a stay of the
effective date of the revocation of his license or permit.

§ 55.75 Hearing after denial of renewal application or revocation of
license or permit.

If a licensee or permittee whose renewal application has been denied or whose
license or permit has been revoked desires a hearing, he shall file a request
for a hearing with the regional director (compliance). In the case of the
revocation of a license or permit, he may include a request for a stay of the
effective date of the revocation.

On receipt of the request the regional director (compliance) shall advise the
licensee or permittee whether the stay of the effective date of the revocation
is granted. If the stay of the effective date of the revocation is granted, the
regional director (compliance) shall refer the matter to an administrative law
judge who shall set a time and place (see § 55.77) for a hearing and shall serve
notice of the hearing upon the licensee or permittee and the regional director
(compliance) at least 10 days in advance of the hearing date.

If the stay of the effective date of the revocation is denied, the licensee
or permittee may request an immediate hearing. In this event, the regional
director (compliance) shall immediately refer the matter to an administrative
law judge who shall set a date and place for a hearing, which date shall be no
later than 10 days from the date the licensee or permittee requested an
immediate hearing. The hearing will be held in accordance with the applicable
provisions of Part 200 of this chapter.

Within a reasonable time after the conclusion of the hearing, and as
expeditiously as possible, the administrative law judge shall render his
decision. He shall certify to the complete record of the proceeding before him
and shall immediately forward the complete certified record, together with two
copies of his decision, to the regional director (compliance), serve one copy of
his decision on the licensee or permittee or his counsel, and transmit a copy to
the Attorney for the Government.

§ 55.76 Action by regional director (compliance). (a) Initial
application proceedings.

If, upon receipt of the record and the recommended decision of the
administrative law judge, the regional director (compliance) decides that the
license or permit should be issued, the regional director (compliance) shall
cause the application to be approved, briefly stating, for the record, his
reasons. If he contemplates that the denial should stand, he shall serve a copy
of the administrative law judge's recommended decision on the applicant,
informing the applicant of his contemplated action and affording the applicant
not more than 10 days in which to submit proposed findings and conclusions or
exceptions to the recommended decision with supporting reasons.

If the regional director (compliance), after consideration of the record of
the hearing and of any proposed findings, conclusions, or exceptions filed with
him by the applicant, approves the findings, conclusions and recommended
decision of the administrative law judge, the regional director (compliance)
shall cause the license or permit to be issued or disapprove the application
accordingly.

If he disapproves the findings, conclusions, and recommendation of the
administrative law judge, in whole or in part, he shall by order make such
findings and conclusions as in his opinion are warranted by the law and the
facts in the record. Any decision of the regional director (compliance) ordering
the disapproval of an initial application for a license or permit shall state
the findings and conclusions upon which it is based, including his

ruling upon each proposed finding, conclusion, and exception to the
administrative law judge's recommended decision, together with a statement of
his findings and conclusions, and reasons or basis for his findings and
conclusions, upon all material issues of fact, law or discretion presented on
the record. A signed duplicate original of the decision will be served upon the
applicant and the original copy containing certificate of service will be placed
in the official record of the proceedings.

If the decision of the regional director (compliance) is in favor of the
applicant, he shall'issue the license or permit, to be effective on
issuance.

(b) Renewal application and revocation proceedings.

Upon receipt of the complete certified records of the hearing, the regional
director (compliance) shall enter an order confirming the revocation of the
license or permit, or disapproving the application, in accordance with the
administrative law judge's findings and decision, unless he disagrees with the
findings and decision. A signed duplicate original of the order, ATF F 5400.9,
will be served upon the licensee or permittee and the original copy containing
certificate of service will be placed in the official record of the
proceedings.

If the regional director (compliance) disagrees with the findings and
decision of the administrative law judge, he shall file a petition with the
Director for review of the findings and decision, as provided in § 55.79.

In either case, if the renewal application denial is sustained, a copy of the
application marked "Disapproved" will be returned to the applicant. If
the renewal application denial is reversed, a license or permit will be issued
to become effective on expiration of the license or permit being renewed, or on
the date of issuance, whichever is later.

If the proceedings involve the revocation of a license or permit which
expired before a decision is in favor of the licensee or permittee, the regional
director (compliance) shall:

(1) If renewal application was timely filed and a stay of the
effective date of the revocation was granted, cause to be issued a license or
permit effective on the date of issuance;

(2) If renewal application was not timely filed but a stay of the
effective date of the revocation had been granted, request that a renewal
application be filed and, following that, cause to be issued a license or permit
to be effective on issuance; or,

(3) If a stay of the effective date of the revocation had not been
granted, request that an application be filed as provided in § 55.45, and
process it in the same manner as for an application for an original license or
permit.

(c) Curtailment of stay of revocation effective date.

If, after approval of a request for a stay of the effective date of an order
revoking a license or permit but before actions are completed under this
subpart, the regional director (compliance) finds that it is contrary to the
public interest for the licensee or permittee to continue the operations or
activities covered by his license or permit, the regional director (compliance)
may issue a notice of withdrawal of the approval, effective on the date of
issuance. Notice of withdrawal will be served upon the licensee or permittee in
the manner provided in

§ 55.81.

[Amended by TD. ATF-290, 54 FR 53054, Dec. 27, 1989]

§ 55.77 Designated place of hearing.

The designated place of hearing set as provided in § 55.73 or § 55.75, will
be at the location convenient to the aggrieved party.

§ 55.78 Representation at a hearing.

An applicant, licensee, or permittee may be represented by an attorney,
certified public accountant, or other person recognized to practice before the
Bureau of Alcohol, Tobacco and Firearms as provided in 31 CFR Part 8, if he has
otherwise complied with the applicable requirements of 26 CFR 601.521 through
601.527. The regional director (compliance) shall be represented in proceedings
under §§ 55.73 and 55.75 by an attorney in the office of the chief counsel or
regional counsel who is authorized to execute and file motions, briefs, and
other papers in the proceedings, on behalf of the regional director
(compliance), in his own name as "Attorney for the Government". [Amended
by TD. ATF-92, 46 FR 46916, Sept. 23, 19811

§ 55.79 Appeal on petition to the Director.

An appeal to the Director is not required prior to filing an appeal with the
U.S. Court of Appeals for judicial review. An appeal may be taken by the
applicant, licensee, or permittee to the Director from a decision resulting from
a hearing under § 55.73 or § 55.75. An appeal may also be taken by a regional
director (compliance) from a decision resulting from a hearing under § 55.75 as
provided in § 55.76(b). The appeal shall be taken by filing a petition for
review on appeal with the Director within 15 days of the service of an
administrative law judge's decision or an order. The petition will set forth
facts tending to show:

(a) Action of an arbitrary nature,

(b) Action without reasonable warrant in fact, or

(c) Action contrary to law and regulations.

A copy of the petition will be filed with the regional director (compliance)
or served on the applicant, licensee, or permittee, as the case may be. In the
event of appeal, the regional director (compliance) shall immediately forward
the complete original record, by certified mail, to the Director for his
consideration, review, and disposition as provided in Subpart I of Part 200 of
this chapter. When, on appeal, the Director affirms the initial decision of the
regional director (compliance) or the administrative law judge, as the case may
be, the initial decision will be final.

§ 55.80 Court review.

An applicant, licensee, or permittee may, within 60 days after receipt
of the decision of the administrative law judge or the final order of the
regional director (compliance) or the Director, file a petition for a judicial
review of the decision, with the U.S. Court of Appeals for the district in which
he resides or has his principal place of business. The Director, upon
notification that a petition has been filed, shall have prepared a complete
transcript of the record of the proceedings.

The regional director (compliance) or the Director, as the case may be, shall
certify to the correctness of the transcript of the record, forward one copy to
the attorney for the Government in the review of the case, and file the original
record of the proceedings with the original certificate in the U.S. Court of
Appeals.

§ 55.81 Service on applicant, licensee, or permfttee.

All notices and other formal documents required to be served on an applicant,
licensee, or permittee under this subpart will be served by certified mail or by
personal delivery. Where service is by personal delivery, the signed duplicate
original copy of the formal document will be delivered to the applicant,
licensee, or permittee, or, in the case of a corporation, partnership, or
association, by delivering it to an officer, manager, or general agent, or to
its attorney of record.

§ 55.82 Provisions of Part 200 made applicable.

The provisions of Subpart G of Part 200 of this chapter, as well as those
provisions of Part 200 relative to failure to appear, withdrawal of an
application or surrender of a permit, the conduct of hearings before an
administrative law judge, and record of testimony, are hereby made applicable to
application, license, and permit proceedings under this subpart to the extent
that they are not contrary to or incompatible with this subpart.

§ 55.83 Operations by licensees or permittees after notice of
denial or revocation.

In any case where a notice of revocation has been issued and a request for a
stay of the effective date of the revocation has not been granted, the licensee
or permittee shall not engage in the activities covered by the license or permit
pending the outcome of proceedings under this subpart. In any case where notice
of revocation has been issued but a stay of the effective date of the revocation
has been granted, the licensee or permittee may continue to engage in the
activities covered by his license or permit unless, or until, formally notified
to the contrary:

Provided, That in the event the license or permit would have expired
before proceedings under this subpart are completed, timely renewal application
must have been filed to continue the license or permit beyond its expiration
date. In any case where a notice of denial of a renewal application has been
issued, the licensee or permittee may continue to engage in the activities
covered by the existing license or permit after the date of expiration of the
license or permit until proceedings under this subpart are completed.

Subpart F-Conduct of Business or Operations

§ 55.101 Posting of license or permit.

A license or permit issued under this part, or a copy of a license or permit,
will be posted and available for inspection on the business premises at each
place where explosive materials are manufactured, imported, or distributed.

§ 55.102 Authorized operations by permittees and certain
licensees.

(a) In general.

The license issued to a manufacturer-limited does not authorize that licensee
to engage in another class of business required to be licensed under the Act or
this part. Therefore, if a licensed manufacturer-limited intends to manufacture
explosive materials for purposes of sale or distribution or to deal in explosive
materials, he shall qualify for the appropriate license. Similarly, a permit
issued under this part does not authorize the permittee to engage in the
business of manufacturing, importing, or dealing in explosive materials.
Accordingly, if a permittee's operations bring him within the definition of a
manufacturer, importer, or dealer under this part, he shall qualify for the
appropriate license.

(b) Distributions of surplus stocks.

Licensed manufacturers-limited and permittees are not authorized to engage in
the business of sale or distribution of explosive materials. However, these
licensees or permittees may dispose of surplus stocks of explosive materials to
other licensees or permittees in accordance with § 55.103, and to nonlicensees
or to nonpermiftees in accordance with § 55.105(d).

§ 55.103 Transactions among licensees/permtees.

(a) General.

(1) A licensed importer, licensed manufacturer or licensed dealer
selling or otherwise distributing explosive materials (or a permittee or a
licensed manufacturer-limited disposing of surplus stock to another licensee or
permittee) who has the certified information required by this section may sell
or distribute explosive materials to a licensee or permittee for not more than
45 days following the expiration date of the distributee's license or permit,
unless the distributor knows or has reason to believe that the distributee's
authority to continue business or operations under this part has been
terminated.

(2) A licensed importer, licensed manufacturer or licensed dealer
selling or otherwise distributing explosive materials (or a permittee or a
licensed manufacturer-limited disposing of surplus stock to another licensee or
permittee) shall verify the license or permit status of the distributes prior to
the release of explosive materials ordered, as required by this section.

(3) Licensees or permittees desiring to return explosive materials to
a licensed manufacturer may do so without obtaining a certified copy of the
manufacturer's license.

(4) Where possession of explosive materials is transferred at the
distributor's premises, the distributor shall in all instances verify the
identity of the person accepting possession on behalf of the distributee before
relinquishing possession. Before the delivery at the distributor's premises of
explosive materials to an employee of a licensee or permittee, or to an employee
of a carrier transporting explosive materials to a licensee or permittee, the
distributor delivering explosive materials shall obtain an executed ATF F 5400.8
from the employee before releasing the explosive materials. The ATF F 5400.8
must contain all of the information required on the form and required by this
part.

Example 1. An ATF F 5400.8 is required when:

a. An employee of the purchaser takes possession at the distributor's
premises.

b. An employee of a carrier hired by the purchaser takes possession at the
distributor's premises.

Example 2. An ATF F 5400.8 is not required when:

a. An employee of the distributor takes possession of the explosives for the
purpose of transport to the purchaser.

b. An employee of a carrier hired by the distributor takes possession of the
explosives for the purpose of tmnsport to the purchaser.

(b) License/permit verification of individuals.

(1) The distributes shall furnish a certified copy

(or, in the case of a user-limited, the original) of the license or permit.
The certified copy need be furnished only once during the current term of the
license or permit. Also, a licensee need not furnish certified copies of
licenses to other licensed locations operated by such licensee.

(2) The distributor may obtain any additional verification as the
distributor deems necessary.

(c) License/permit verification of business organizations.

(1) A business organization may (in lieu of furnishing a certified
copy of a license) furnish the distributor a certified list which contains the
name, address, license number and date of license expiration of each licensed
location. The certified list need be furnished only once during the current term
of the license or permit. Also, a business organization need not furnish a
certified list to other licensed locations operated by such business
organization.

(2) A business organization shall, prior to ordering explosive
materials, furnish the licensee or permittee a current certified list of the
representatives or agents authorized to order explosive materials on behalf of
the business organization showing the name, address, and date and place of birth
of each representative or agent. A licensee or permittee shall not distribute
explosive materials to a business organization on the order of a person who does
not appear on the certified list of representatives or agents and, if the person
does appear on the certified list, the licensee or permittee shall verify the
identity of such person.

(d) Licensee/permittee certified statement.

(1) A licensee or permittee ordering explosive materials from another
licensee or permittee shall furnish a current, certified statement of the
intended use of the explosive materials; e.g., resale, mining, quarrying,
agriculture, construction, road building, oil well drilling, seismographic
research, to the distributor.

(2) For individuals, the certified statement of intended use must
specify the name, address, date and lace of birth, and social security number of
the distributes.

(3) For business organizations, the certified statement of intended
use must specify the taxpayer identification number, the identity and the
principal and local places of business.

(4) The licensee or permittee purchasing explosive materials need
revise the furnished copy of the certified statement oily when the information
is no longer current.

(e) User-limited permit transactions.

A user-limited permit issued under the provisions of this part is valid for
only a single purchase transaction and is not renewable (see §55.51).
Accordingly, at the time a user-limited permittee orders explosive materials,
the licensed distributor shall write on the front of the user-limited permit the
transaction date, his signature, and the distributor's license number prior to
returning the permit to the user-limited permittee.

§ 55.104 Certified copy of license or permit.

Except in the case of a nonrenewable user's permit (see §§ 55.43 and 55.51),
each person issued a license or permit under this part who desires an additional
copy of his license or permit for certification and for use under § 55.103,
shall:

(a) Make a reproduction of his license or permit and execute the
certification on it;

(b) Make a reproduction of his license or permit, enter on the
reproduction the statement:

"I certify that this is a true copy of a (insert the word license
or permit) issued to me to engage in the specified business or
operations"

and sign his name next to the statement; or (c) Submit a
request, in writing, for certified copies of his license or permit to the Chief,
Firearms and Explosives Licensing Center. The request will show the name, trade
name (if any), and address of the licensee or permittee and the number of copies
of the license or permit desired. There is a fee of $1 for each copy of a
license or permit issued by the Chief, Firearms and Explosives Licensing Center,
under this paragraph.

Fee payment must accompany each request for additional copies of a license or
permit. The fee must be paid by money order or check made payable to the Bureau
of Alcohol, Tobacco and Firearms.

[Amended by TD. ATF-290, 54 FR 53054, Dec. 27, 1989]

§ 55.105 Distributions to nonlicensees and nonpermittees.

(a) This section will apply in any case where distribution of
explosive materials to the distributes is not otherwise prohibited by the Act or
this part.

(b) Except as provided in paragraph (c) of this section, a licensed
importer, licensed manufacturer, or licensed dealer may distribute explosive
materials to a nonlicensee or nonpermittee if the nonlicensee or nonpermittee is
a resident of the same State in which the licensee's business premises are
located, and the nonlicensee or nonpermittee furnishes to the licensee the
explosives transaction record, ATF F 5400.4, required by § 55.126. Disposition
of ATF F 5400.4 will be made in accordance with § 55.126.

(c) A licensed importer, licensed manufacturer, or licensed dealer may
sell or distribute explosive materials to a resident of a State contiguous to
the State in which the licensee's place of business is located if the
purchaser's State or residence has enacted legislation, currently in force,
specifically authorizing a resident of that State to purchase explosive
materials in a contiguous State and the purchaser and the licensee have, prior
to the distribution of the explosive materials, complied with all the
requirements of paragraphs (b), (e), and (D of this section applicable to
intrastate transactions occurring on the licensee's business premises.

(d) A licensed manufacturer-limited or a permittee may dispose of
surplus stocks of explosive materials to a nonlicensee or nonpermittee if the
nonlicensee or nonpermittee is a resident of the same State in which the
licensee's or permittee's business premises or operations are located, or is a
resident of a State contiguous to the State in which the licensee's or
permittee's place of business or operations are located, and if the requirements
of paragraphs (b), (c), (e) and (f) of this section are fully met.

(e) A licensed importer, licensed manufacturer, or licensed dealer
selling or otherwise distributing explosive materials to a business entity shall
verify the identity of the representative or agent of the business entity who is
authorized to order explosive materials on behalf of the business entity. Each
business entity ordering explosive materials shall furnish the distributing
licensee prior to or with the first order of explosive materials a current
certified list of the names of representatives or agents authorized to order
explosive materials on behalf of the business entity. The business entity
ordering explosive materials is responsible for keeping the certified list
current. A licensee shall not distribute explosive materials to a business
entity on the order of a person whose name does not appear on the certified
list.

(f) Where the possession of explosive materials is transferred at the
distributor's premises, the distributor shall in all instances verify the
identity of the person accepting possession on behalf of the distributes before
relinquishing possession. Before the delive ry at the distributor's premises of
explosive materials to an employee of a nonlicensee or nonpermittee, or to an
employee of a carrier transporting explosive materials to a nonlicensee or
nonpermittee, the distributor delivering explosive materials shall obtain an
executed ATF F 5400.8 from the employee before releasing the explosive
materials. The ATF F 5400.8 must contain all of the information required on the
form and by this part. (See examples in § 55.103(a).)

29

(g)A licensee or permittee disposing of surplus

stock may sell or distribute commercially manufac-

tured black powder in quantities of 50 pounds or

less to a nonlicensee or nonpermittee if the black powder is intended to be
used solely for sporting, recreational, or cultural purposes in antique firearms
as defined in 18 U.S.C. 921(a)(16), or in antique devices as exempted from the
term "destructive device" in 18 U.S.C. 921(a)(4). [Amended by ID.
ATF-293, 55 FR 3721, Feb. 5, 1990]

§ 55.106 Certain prohibited distributions.

(a) A licensee shall not distribute explosive materials to any person
not licensed or holding a permit under this part, who the licensee knows or has
reason to believe does not reside in the State in which the licensee's place of
business is located. This paragraph does not apply to the distribution of
explosive materials to a resident of a State contiguous to the State in which
the licensee's place of business is located, if the requirements of

§ 55.105(c) are fully met.

(b) A licensee shall not distribute any explosive materials to
any person:

(1) Who the licensee knows is less than 21 years of age;

(2) In any State where the purchase, possession, or use by a person of
explosive materials would be in violation of any State law or any published
ordinance applicable at the place of distribution;

(3) Who the licensee has reason to believe intends to transport the
explosive materials into a

State where the purchase, possession, or use of explosive materials is
prohibited or which does not permit its residents to transport or ship explosive
materials into the State or to receive explosive materials in the State; or

(4) Who the licensee has reasonable cause to believe intends to use
the explosive materials for other than a lawful purpose.

(c) A licensee shall not distribute any explosive materials to any
person knowing or having reason to believe that the person:

(1) Is, except as provided under § 55.142(d) and (e), under indictment
or information for, or was convicted in any court of, a crime punishable by
imprisonment for a term exceeding 1 year;

(2) Is a fugitive from justice;

(3) Is an unlawful user of marijuana, or any

depressant or stimulant drug, or narcotic drug (as these terms are defined in
the Controlled Substances Act, 21 U.S.C. 802); or

(4) Was adjudicated as a mental defective or was committed to a mental
institution.

(d) The provisions of this section do not apply to the purchase of
commercially manufactured black

powder in quantities not to exceed 50 pounds, intended to be used solely for
sporting, recreational, or cultural purposes in antique firearms or in antique
devices.

§ 55.107 Record of transactions.

Each licensee and permittee shall keep records of explosive materials as
required by Subpart G of this part.

§ 55.108 Importation.

(a) Explosive materials imported or brought into the United States by
a licensed importer or permittee may be released from customs custody to the
licensed importer or permittee upon proof of his status as a licensed importer
or permittee. Proof of status must be made by the licensed importer or permittee
furnishing to the customs officer a certified copy of his license or permit (see
§ 55.103).

(b) A nonlicensee or nonpermittee may import or bring into the United
States commercially manufactured black powder in quantities not to exceed 50
pounds.

(c) The provisions of this section are in addition to, and are not in
lieu of, any applicable requirement under 27 CFR Part 47.

§ 55.109 Identification of explosive materials.

(a) Each licensed manufacturer of explosive materials shall legibly
identify by marking all explosive materials he manufactures for sale or
distribution.

The marks required by this section must identify the manufacturer and the
location, date, and shift of manufacture. The licensed manufacturer shall place
on each cartridge, bag, or other immediate container of explosive materials
manufactured for sale or distribution the required mark which shall also be
placed on the outside container, if any, used for their packaging.

(b) Exceptions.

(1) Licensed manufacturers of blasting caps are

only required to place the identification marks prescribed in paragraph (a)
on the containers used for the packaging of blasting caps.

(2) The Director may authorize other means of identifying explosive
materials upon receipt of a letter application from the licensed manufacturer
showing that other identification is reasonable and will not hinder the
effective administration of this part.

(3) The Director may authorize the use of other means of
identification on fireworks instead of

marks prescribed in paragraph (a) of this section.

Subpart G-Records and Reports

§ 55.121 General.

(a)(1) Licensees and permittees shall keep records pertaining to
explosive materials in permanent form (i.e., commercial invoices, record books)
and in the manner required in this subpart.

(2) Licensees and permittees shall keep records required by this
subpart on the business premises for five years from the date a transaction
occurs or until discontinuance of business or operations by the licensee or
permittee. (See also § 55.128 for discontinuance of business or operations.)

(b) ATF officers may enter the premises of any licensee or permittee
for the purpose of examining or inspecting any record or document required by or
obtained under this part (see § 55.24). Section 843(f) of the Act requires
licensees and permittees to make all required records available for examination
or inspection at all reasonable times. Section 843(f) of the Act also requires
licensees and permittees to submit all reports and information relating to all
required records and their contents, as the regulations in this part
prescribe.

(c) Each licensee and permittee shall maintain all records of
importation, production, shipment, receipt, sale, or other disposition, whether
temporary or permanent, of explosive materials as the regulations in this part
prescribe. Sections 842(f) and 842(g) of the Act make it unlawful for any
licensee or permittee knowingly to make any false entry in, or fail to make
entry in, any record required to be kept under the Act and the regulations in
this part.

[Amended by TD. ATF-172, 49 FR 14941, Apr. 16, 19841

§ 55.122 Records maintained by licensed importers.

(a) Each licensed importer shall take true and accurate physical
inventories which will include all explosive materials on hand required to be
accounted for in the records kept under this part. The licensed importer shall
take a special inventory:

(1) At the time of commencing business, which is the effective date of
the license issued upon original qualification under this part;

(2) At the time of changing the location of his business to another
region;

(3) At the time of discontinuing business; and

(4) At any time the regional director (compliance) may in writing
require.

Each special inventory is to be prepared in duplicate, the original of which
is submitted to the regional director (compliance), and the duplicate retained
by the licensed importer. If a special inventory specified by paragraphs (a)(1)
through (4) of this section has not been taken during the calendar year, at
least one physical inventory will be taken. However, the record of the yearly
inventory, other than a special inventory required by paragraphs (a)(1) through
(4) of this section, will remain on file for inspection instead of being sent to
the regional director (compliance). (See also § 55.127.)

(b) Each licensed importer shall, not later than the close of the next
business day following the date of importation or other acquisition of explosive
materials, enter the following information in a separate record:

(1) Date of importation or other acquisition.

(2) Name or brand name of manufacturer and country of manufacture.

(3) Manufacturer's marks of identification.

(4) Quantity (applicable quantity units, such as pounds of explosives,
number of detonators, number of special fireworks, etc.).

(5) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

(c) Each licensed importer shall, not later than the close of the next
business day following the date of distribution of any explosive materials to
another licensee or a permittee, enter in a separate record the following
information:

(1) Date of disposition.

(2) Name or brand name of manufacturer and country of manufacture.

(3) Manufacturer's marks of identification.

(4) Quantity (applicable quantity units, such as pounds of explosives,
number of detonators, number of special fireworks, etc.).

(5) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

(6) License or permit number of licensee or permittee to whom the
explosive materials are distributed.

(d) The regional director (compliance) may authorize alternate records
to be maintained by a licensed importer to record his distribution of explosive
materials when it is shown by the licensed importer that alternate records will
accurately and readily disclose the information required by paragraph (c) of
this section. A licensed importer who proposes to use alternate records shall
submit a letter application to the regional director (compliance) and shall
describe the proposed alternate records and the need for them. Alternate
records

are not to be employed by the licensed importer until approval is received
from the regional director (compliance).

(e) Each licensed importer shall maintain separate records of the
sales or other distribution made of explosive materials to nonlicensees or
nonpermittees. These records are maintained as prescribed by § 55.126.

[Amended by TD. ATF-172, 49 FR 14941, Apr. 16, 1984; TD.

ATF-293, 55 FR 372 1, Feb. 5, 1 990]

§ 55.123 Records maintained by licensed manufacturers.

(a) Each licensed manufacturer shall take true and accurate physical
inventories which will include all explosive materials on hand required to be
accounted for in the records kept under this part. The licensed manufacturer
shall take a special inventory:

(1) At the time of commencing business, which is the effective date of
the license issued upon original qualification under this part;

(2) At the time of changing the location of his premises to another
region;

(3) At the time of discontinuing business; and

(4) At any other time the regional director (compliance) may in
writing require.

Each special inventory is to be prepared in duplicate, the original of which
is submitted to the regional director (compliance), and the duplicate retained
by the licensed manufacturer. If a special inventory required by paragraphs
(a)(1) through (4) of this section has not been taken during the calendar year,
at least one physical inventory will be taken. However, the record of the yearly
inventory, other than a special inventory required by paragraphs (a)(1) through
(4) of this section, will remain on file for inspection instead of being sent to
the regional director (compliance). (See also § 55.127.)

(b) Each licensed manufacturer shall not later than the close of the
next business day following the date of manufacture or other acquisition of
explosive materials, enter the following information in a separate record:

(1) Date of manufacture or other acquisition.

(2) Manufacturer's marks of identification.

(3) Quantity (applicable quantity units, such as pounds of explosives,
number of detonators, number of special fireworks, etc.).

(4) Name, brand name or description (dynamite(dyn), blasting agents
(ba), detonators (det), special fireworks (sf), etc.) and size (length and
diameter or diameter only of special fireworks).

(c) Each licensed manufacturer shall, not later than the close of the
next business day following the date of distribution of any explosive materials
to another licensee or a permittee, enter in a separate record the following
information:

(1) Date of disposition.

(2) Name or brand name of manufacturer or

name of importer, as applicable, if acquired other than by his own
manufacture.

(3) Manufacturer's marks of identification.

(4) Quantity (applicable quantity units, such as pounds of explosives,
number of detonators, number of special fireworks, etc.).

(5) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

(6) License or permit number of licensee or permittee to whom the
explosive materials are distributed.

(d) Each licensed manufacturer who manufactures explosive materials
for his own use shall, not later than the close of the next business day
following the date of use, enter in a separate record the following
information:

(1) Date of use.

(2) Quantity (applicable quantity units, such as

pounds of explosives, number of detonators, number of special fireworks,
etc.).

(3) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

Exception: A licensed manufacturer is exempt from the recordkeeping
requirements of this subsection if the explosive materials are
manufactured for his own use and used within a 24 hour period at the same
site.

(e) The regional director (compliance) may authorize alternate records
to be maintained by a licensed manufacturer to record his distribution or use of
explosive materials when it is shown by the licensed manufacturer that alternate
records will accurately and readily disclose the information required by
paragraph (c) of this section. A licensed manufacturer who proposes to use
alternate records shall submit a letter application to the regional director
(compliance) and shall describe the proposed alternate records and the need for
them. Alternate records are not to be employed by the licensed manufacturer
until approval is received from the regional director (compliance).

(f) Each licensed manufacturer shall maintain separate records of the
sales or other distribution made of explosive materials to nonlicensees or
nonpermittees. These records are maintained as prescribed by § 55.126.

[Amended by TD. ATF-172, 49 FR 14941, Apr. 16, 1984; TD. ATF-293, 55
FR 3721, Feb. 5, 1990]

§ 55.124 Records maintained by licensed dealem.

(a) Each licensed dealer shall take true and accurate physical
inventories which will include all explosive materials on hand required to be
accounted for in the records kept under this part. The licensed dealer shall
take a special inventory:

(1) At the time of commencing business, which is the effective date of
the license issued upon original qualification under this part;

(2) At the time of changing the location of his premises to another
region;

(3) At the time of discontinuing business; and

(4) At any other time the regional director (com-

pliance) may in writing require.

Each special inventory is to be prepared in duplicate, the original of which
is submitted to the regional director (compliance), and the duplicate retained
by the licensed dealer. If a special inventory required by paragraphs (a)(1)
through (4) of this section has not been taken during the calendar year, at
least one physical inventory will be taken. However, the record of the yearly
inventory, other than a special inventory required by paragraphs (a)(1) through
(4) of this section, will remain on file for inspection instead of being sent to
the regional director (compliance). (See also § 55.127.)

(b) Each licensed dealer shall, not later than the close of the next
business day following the date of purchase or other acquisition of explosive
materials (except as provided in paragraph (d) of this section), enter the
following information in a separate record:

(1) Date of acquisition.

(2) Name or brand name of manufacturer and name of importer (if
any).

(3) Manufacturer's marks of identification.

(4) Quantity (applicable quantity units, such as pounds of explosives,
number of detonators, number of special fireworks, etc.).

(5) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

(6) Name, address, and license or permit number of the person from
whom the explosive materials are received.

(c) Each licensed dealer shall, not later than the close of the next
business day following the date of use (if the explosives are used by the
dealer) or the date of distribution of any explosive materials to another
licensee or a permittee (except as provided in paragraph (d) of this section),
enter in a separate record the following information:

(1) Date of disposition.

(2) Name or brand name of manufacturer and name of importer (if
any).

(3) Manufacturer's marks of identification.

(4) Quantity (applicable quantity units, such as pounds of explosives,
number of detonators, number of special fireworks, etc.).

(5) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

(6) License or permit number of licensee or permittee to whom the
explosive materials are distributed.

(d) When a commercial record is kept by a licensed dealer showing the
purchase or other acquisition information required for the permanent record
prescribed by paragraph (b) of this section, or showing the distribution
information required for the permanent record prescribed by paragraph (c) of
this section, the licensed dealer acquiring or distributing the explosive
materials may, for a period not exceeding seven days following the date of
acquisition of distribution of the explosive materials, delay making the
required entry into the permanent record of acquisition or distribution.
However, until the required entry of acquisition or disposition is made in the
permanent record, the commercial record must be:

(1) Kept by the licensed dealer separate from other commercial
documents kept by the licensee, and

(2) Readily available for inspection on the licensed premises.

(e) The regional director (compliance) may authorize alternate records
to be maintained by a licensed dealer to record his acquisition or disposition
of explosive materials, when it is shown by the licensed dealer that alternate
records will accurately and readily disclose the required information. A
licensed dealer who proposes to use alternate records shall submit a letter
application to the regional director (compliance) and shall describe the
proposed alternate records and the need for them. Alternate records are not to
be employed by the licensed dealer until approval is received from the regional
director (compliance).

(f) Each licensed dealer shall maintain separate records of the sales
or other distribution made of explosive materials to nonlicensees or
nonpermittees. These records are maintained as prescribed by § 55.126.

[Amended by TD. ATF-172, 49 FR 14941, Apr 16, 1984; TD.

ATF-293, 55 FR 3721, Feb. 5, 19901

§ 55.125 Records maintained by licensed manufacturers-limited and
permittees.

(a) Each licensed manufacturer-limited and each permittee will take
true and accurate physical inventories which will include all explosive
materials on hand required to be accounted for in the records kept under this
part. The licensed manufacturer-limited or permittee shall take a special
inventory:

(1) At the time of commencing business, which is the effective date of
the license or permit issued upon original qualification under this part;

(2) At the time of changing the location of his premises to another
region;

(3) At the time of discontinuing business; and

(4) At any other time the regional director (compliance) may in
writing require.

Each special inventory is to be prepared in duplicate, the original of which
is submitted to the regional director (compliance) and the duplicate retained by
the licensee or permittee. If a special inventory required by paragraphs (a)(1)
through (4) of this section has not been taken during the calendar year, a
permittee is required to take at least one physical inventory. However, the
record of the yearly inventory, other than a special inventory required by
paragraphs (a)(1) through (4) of this section, will remain on file for
inspection instead of being sent to the regional director (compliance). (See
also § 55.127).

(b)(1) Each licensed manufacturer-limited shall, not later than the
close of the next business day following the date of disposition of surplus
stocks of explosive materials to another licensee or to a permittee, enter in a
separate record the information prescribed in § 55.123(c).

(2) Each licensed manufacturer-limited shall maintain separate records
of disposition of surplus stocks of explosive materials to nonlicensees or
nonpermittees as prescribed by § 55.126.

(c) Each permittee shall, not later than the close of the next
business day following the date of acquisition of explosive materials, enter the
following information in a separate record:

(1) Date of acquisition.

(2) Name or brand name of manufacturer.

(3) Manufacturer's marks of identification.

(4) Quantity (applicable quantity units, such as

pounds of explosives, number of detonators, number of special fireworks,
etc.).

(5) Description (dynamite (dyn), blasting agents (ba), detonators
(det), special fireworks (sf), etc.) and size (length and diameter or diameter
only of special fireworks).

(6) Name, address, and license number of the persons from whom the
explosive materials are received.

(d) Each permittee shall, not later than the close of the next
business day following the date of disposition of surplus explosive materials to
another permittee or a licensee, enter in a separate record the information
prescribed in § 55.124(c).

(e) Each permittee shall maintain separate records of disposition of
surplus stocks of explosive materials to nonlicensees or nonpermittees as
prescribed in § 55.126.

(f) The regional director (compliance) may authorize alternate records
to be maintained by a permittee to record his acquisition of explosive
materials, when it is shown by the permittee that alternate records will
accurately and readily disclose the required information. A permittee who
proposes to use alternate records shall submit a letter application to the
regional director (compliance) and shall describe the proposed alternate records
and the need for them. Alternate records are not to be employed by the permittee
until approval is received from the regional director (compliance).

[Amended by TD. ATF-172, 49 FR 14941, Apr. 16, 1984; ID. ATF-293, 55 FR 3722,
Feb. 5, 1990)

§ 55.126 Explosives transaction record.

(a) A licensee or permittee shall not temporarily or permanently
distribute explosive materials to any person, other than another licensee or
permittee, unless he records the transaction on an explosives transaction
record, ATF F 5400.4.

(b) Before the distribution of explosive materials to a nonlicensee or
nonpermittee who is a resident of the State in which the licensee or permittee
maintains his business premises, or to a nonlicensee or nonpermittee who is not
a resident of the State in which the licensee or permittee maintains his
business premises and is acquiring explosive materials under § 55.105(c), the
licensee or permittee distributing the explosive materials shall obtain an
executed ATF F 5400.4 from the distributes which contains all of the information
required on the form and by the regulations in this part.

(c) Completed ATF F 5400.4 is to be retained by the licensee or
permittee as part of his permanent records in accordance with paragraph (d) of
this section.

(d) Each ATF F 5400.4 is retained in numerical (by transaction serial
number) order commencing with "l " and continuing in regular sequence. When the
numbering of any series reaches "1,000,000," the licensee or permittee may
recommence the series. The recommenced series is to be given an alphabetical
prefix or suffix. Where there is a change in proprietorship, or in the
individual, firm, corporate name or trade name, the series in use at the time of
the change may be continued.

(e) The requirements of this section are in addition to any other
recordkeeping requirement contained in this part.

(f) A licensee or permittee may obtain, upon request, a supply of ATF
F 5400.4 from the ATF Distribution Center (see § 55.21(c) for address).

[Amended by TD. ATF-93, 46 FR 50787, Oct. 15, 1981; TD. ATF-172, 49 FR 14941,
Apr. 16, 19841

§ 55.127 Daily summary of magazine transactions.

In taking the inventory required by §§ 55.122, 55.123, 55.124, and 55.125, a
licensee or permittee shall enter the inventory in a record of daily
transactions to be kept at each magazine of an approved storage facility;
however, these records may be kept at one central location on the business
premises if separate records of daily transactions are kept for each
magazine.

Not later than the close of the next business day, each licensee and
permittee shall record by manufacturer's name or brand name, the total quantity
received in and removed from each magazine during the day, and the total
remaining on hand at the end of the day.

Quantity entries for special fireworks may be expressed as the number and
size of individual special fireworks in a finished state or as the number of
packaged display segments or packaged displays. Information as to the number and
size of special fireworks contained in any one packaged display segment or
packaged display shall be provided to any ATF officer on request.

Any discrepancy which might indicate a theft or loss of explosive materials
is to be reported in accordance with § 55.30.

[Amended by TD. ATF-172, 49 FR 14941, Apr. 16, 1984; TD.
ATF-293, 55 FR 3717, Feb. 5, 19901

§ 55.128 Discontinuance of business.

Where an explosive materials business or operations is discontinued and
succeeded by a new licensee, the records prescribed by this subpart shall
appropriately reflect such facts and shall be delivered to the successor. Where
discontinuance of the business or operations is absolute, the records required
by this subpart shall be delivered within 30 days following the business or
operations discontinuance to any ATF office located in the region in which the
business was located, or to the ATF Firearms Outof-Business Records Center,
3361F 75th Avenue, Landover, Maryland 20785. Where State law or local ordinance
requires the delivery of records to other responsible authority, the Chief,
Firearms and Explosives Licensing Center may arrange for the delivery of the
records required by this subpart to such authority. (See also, § 55.61.)
[Amended by ID. ATF-290, 54 FR 53054, Dec. 27, 1989]

§ 55-129 Exportation.

Exportation of explosive materials is to be in accordance with the applicable
provisions of section 38 of the Arms Export Control Act (22 U.S.C. 2778) and
implementing regulations. However, a licensed importer, licensed manufacturer,
or li censed dealer exporting explosive materials shall maintain records showing
the manufacture or acquisition of explosive materials as required by this part
and records showing the quantity, the manufacturer's name or brand name of
explosive materials, the name and address of the foreign consignee of the
explosive materials, and the date the explosive materials were exported.

Subpart H-Exemptions

§ 55.141 Exemptions.

(a) General.

This part does not apply with respect to:

(1) Any aspect of the transportation of explosive materials via
railroad, water, highway, or air which is regulated by the U.S. Department of
Transportation and its agencies.

(2) The use of explosive materials in medicines and medicinal agents
in the forms prescribed by the official United States Pharmacopeia
or the National Formulary, The United States Pharmacopeia
and the National Formulary, USP and NF Compendia, are available from the United
States Pharmacopeial Convention, Inc., 12601 Twinbrook Parkway, Rockville,
Maryland 20852.

(3) The transportation, shipment, receipt, or importation of explosive
materials for delivery to any agency of the United States or to any State or its
political subdivision.

(4) Small arms ammunition and components of small arms
ammunition.

(5) The manufacture under the regulation of themilitary department of
the United States of explosive materials for, or their distribution to or
storage or possession by, the military or naval services or other agencies of
the United States.

(6) Arsenals, navy yards, depots, or other establishments owned by, or
operated by or on behalf of, the United States.

(7) The importation and distribution of fireworks classified as Class
C explosives and generally known as "common fireworks", and other Class C
explosives, as described by U.S. Department of Transportation regulations in 49
CFR 173.100 (p), (r), (t), (u) and (x).

(8) Gasoline, fertilizers, propellant actuated devices, or propellant
actuated industrial tools manufactured, imported, or distributed for their
intended purposes.

(9) Industrial and laboratory chemicals which are intended for use as
reagents and which are packaged and shipped pursuant to U.S. Department of
Transportation regulations, 49 CFR Parts 1 00 to 177, which do not require
explosives hazard warning labels.

(b) Black powder.

Except for the provisions applicable to persons required to be licensed under
subpart D, this part does not apply with respect to commercially manufactured
black powder in quantities not to exceed 50 pounds, percussion caps, safety and
pyrotechnic fuses, quills, quick and slow matches, and friction primers, if the
black powder is intended to be used solely for sporting, recreational, or
cultural purposes in antique firearms, as defined in 1 8 U.S.C. 921 (a)(1 6) or
antique devices, as exempted from the term "destructive devices" in 18
U.S.C. 921(a)(4).

(Amended by TD. ATF-87, 46 FR 46916, Sept. 23, 1981; TD. ATF-293, 55 FR 3722,
Feb. 5, 1990]

§ 55.142 Relief from disabilities incurred by indictment, information or
conviction.

(a)Any person may make application for relief from the disabilities
under the Act incurred by reason of an indictment or information for, or
conviction of, a crime punishable by imprisonment for a term exceeding one
year.

(b) An application for relief from disabilities is filed with the
Director and supported by data that the applicant considers appropriate. In the
case of a corporation, or of any person having the power to direct or control
the management of the corporation, the supporting data is to include information
as to the absence of culpability in the offense for which the corporation, or
any such person, was indicted, formally accused or convicted.

(c) The Director may grant relief to an applicant if it is established
to the satisfaction of the Director that the circumstances regarding the
indictment, information or conviction and the applicant's record and reputation
are such that the applicant will not be likely to act in a manner dangerous to
public safety, and that the granting of the relief would not be contrary to the
public interest.

(d) A person who has been granted relief under this section is
relieved of any disabilities imposed by the Act with respect to engaging in the
business of importing, manufacturing, or dealing in explosive materials, or the
purchase of explosive materials, that were incurred by reason of such
indictment, information or conviction.

(e)(1) A licensee or permiftee who is under indictment or information
for, or convicted of, a crime punishable by imprisonment for a term exceeding
one year during the term of a current license or permit, or while he has pending
a license or permit renewal application, shall not be barred from licensed or
permit operations for 30 days after the date of indictment or information or 30
days after the date upon which his conviction becomes final. Also, if he files
his application for relief under this section within such 30 day period, he may
further continue licensed or permit operations while his application is pending.
A licensee or permiffee who does not file an application within 30 days from the
date of his indictment or information, or within 30 days from the date his
conviction becomes final, shall not continue licensed or permit operations
beyond 30 days from the date of his indictment or information or beyond 30 days
from the date his conviction becomes final.

(2) In the event the term of a license or permit of a person expires
during the 30 day period following the date of indictment or information or
during the 30 day period after the date upon which his conviction becomes final
or while his application for relief is pending, he shall file a timely
application for renewal of his license or permit in order to continue licensed
or permit operations. The license or permit application is to show that the
applicant has been indicted or under information for, or convicted of, a crime
punishable by imprisonment for a term exceeding one year.

(3) A licensee or permittee shall not continue licensed or permit
operations beyond 30 days following the date the Director issues notification
that the licensee's or permittee's application for removal of the disabilities
resulting from an indictment, information or conviction has been denied.

(4) When a licensee or permittee may no longer

continue licensed or permit operations under this section, any application
for renewal of license of permit filed by the licensee or permittee while his
application for removal of disabilities resulting from an indictment,
information or conviction is pending, will be denied by the regional director
(compliance).

Subpart 1-Unlawful Acts, Penalties,

Seizures and Forfeitures

§ 55.161 Engaging in business without a license.

Any person engaging in the business of importing, manufacturing, or dealing
in explosive materials without a license issued under the Act, shall be fined
not more than $10,000 or imprisoned not more than 1 0 years, or both.

§ 55.162 False statement or representation.

Any person who knowingly withholds information or makes any false or
fictitious oral or written statement or furnishes or exhibits any false,
fictitious, or misrepresented identification, intended or likely to deceive for
the purpose of obtaining explosive materials, or a license, permit, exemption,
or relief from disability under the Act, shall be fined not more than $10,000 or
imprisoned not more than 10 years, or both.

§ 55.163 False entry in record.

Any licensed importer, licensed manufacturer, licensed manufacturer-limited,
licensed dealer, or permiffee who knowingly makes any false entry in any record
required to be kept under Subpart G of this part, shall be fined not more than
$10,000 or imprisoned not more than 10 years, or both.

§ 55.164 Unlawful storage.

Any person who stores any explosive material in a manner not in conformity
with this part, shall be fined not more than $1,000 or imprisoned not more than
one year, or both.

§ 55.165 Failure to report theft or loss.

Any person who has knowledge of the theft or loss of any explosive materials
from his stock and fails to report the theft or loss within 24 hours of
discovery in accordance with § 55.30, shall be fined not more than $1,000 or
imprisoned not more than one year, or both.

§ 55.166 Seizure or forfeiture.

Any explosive materials involved or used or intended to be used in any
violation of the Act or of this part or in any violation of any criminal law of
the United States are subject to seizure and forfeiture, and all provisions of
title 26, U.S.C. relating to the seizure, forfeiture, and disposition of
firearms, as defined in 26 U.S.C. 5845(a), will, so far as applicable, extend to
seizures and forfeitures under the Act.

Subpart K-Storage

§ 55.201 General.

(a) Section 8420) of the Act and § 55.29 of this part require that the
storage of explosive materials by any person must be in accordance with the
regulations in this part. Further, section 846 of this Act authorizes
regulations to prevent the recurrence of accidental explosions in which
explosive materials were involved. The storage standards prescribed by this
subpart confer no right or privileges to store explosive materials in a manner
contrary to State or local law.

(b) The Director may authorize alternate construction for explosives
storage magazines when it is shown that the alternate magazine construction is
substantially equivalent to the standards of safety and security contained in
this subpart. Any alternate explosive magazine construction approved by the
Director prior to August 9, 1982, will continue as approved unless notified in
writing by the Director. Any person intending to use alternate magazine
construction shall submit a letter application to the regional director
(compliance) for transmittal to the Director, specifically describing the
proposed magazine. Explosive materials may not be stored in alternate magazines
before the applicant has been notified that the application has been
approved.

(c) A licensee or permittee who intends to make changes in his
magazines, or who intends to construct or acquire additional magazines, shall
comply with § 55.63.

(d) The regulations set forth in §§ 55.221 through 55.224 pertain to
the storage of special fireworks, pyrotechnic compositions and explosive
materials used in assembling fireworks.

(e) The provisions of § 55.202(a) classifying flash powder and bulk
salutes as high explosives are mandatory after March 7, 1990:

Provided, that those persons who hold licenses or permits under this
part on that date shall, with respect to the premises covered by such licenses
or permits, comply with the high explosives storage requirements for flash
powder and bulk salutes by March 7, 1991.

[Amended by TD. ATF-293, 55 FR 3722, Feb. 5, 1990]

§ 55-202 Classes of explosive materials.

For purposes of this part, there are three classes of explosive materials.
These classes, together with the description of explosive materials comprising
each class, are as follows:

(a) High explosives. Explosive materials which can be caused to
detonate by means of a blasting cap when unconfined, (for example, dynamite,
flash powders, and bulk salutes). See also § 55.201 (e).

(b) Low explosives. Explosive materials which can be caused to
deflagrate when confined, (for example, black powder, safety fuses, igniters,
igniter cords, fuse lighters, and "special fireworks" defined as Class B
explosives by U.S. Department of Transportation regulations in 49 CFR Part 173,
except for bulk salutes).

(c) Blasting agents. (F;Dr example, ammonium nitrate-fuel oil and
certain water gels (see also § 55.1 1). [Amended by TD. ATF-293, 55 FR 3722,
Feb. 5. 1990]

§ 55.203 Types of magazines.

For purposes of this part, there are five types of magazines. These types,
together with the classes of explosive materials, as defined in § 55.202, which
will be stored in them, are as follows:

(a) Type 1 magazines. Permanent magazines for the storage of high
explosives, subject to the limitations prescribed by § 55.206 and § 55.213.
Other classes of explosive materials may also be stored in type 1 magazines.

(b) Type 2 magazines. Mobile and portable indoor and outdoor magazines
for the storage of high explosives, subject to the limitations prescribed by §§
55.206, 55.208(b), and 55.213. Other classes of explosive materials may also be
stored in type 2 magazines.

(c) Type 3 magazines. Portable outdoor magazines for the temporary
storage of high explosives while attended (for example, a "day-box"), subject to
the limitations prescribed by §§ 55.206 and 55.213.Other classes of explosive
materials may also bestored in type 3 magazines.

(d) Type 4 magazines. Magazines for the storage of low explosives,
subject to the limitations prescribed by §§ 55.206(b), 55.210(b), and 55.213.
Blasting agents may be stored in type 4 magazines, subject to the limitations
prescribed by §§ 55.206(c), 55.21 1 (b), and 55.213. Detonators that will not
mass detonate may also be stored in type 4 magazines, subject to the limitations
prescribed by §§ 55.206(a), 55.210(b), and 55.213.

(e) Type 5 magazines. Magazines for the storage of blasting agents,
subject to the limitations prescribed by §§ 55.206(c), 55.21 1 (b), and
55.213.

§ 55.204 Inspection of magazines.

Any person storing explosive materials shall inspect his magazines at least
every seven days. This inspection need not be an inventory, but must be
sufficient to determine whether there has been unauthorized entry or attempted
entry into the magazines, or unauthorized removal of the contents of the
magazines.

§ 55.205 Movement of explosive materials.

All explosive materials must be kept in locked magazines meeting the
standards in this subpart unless they are:

(a) In the process of manufacture;

(b) Being physically handled in the operating process of a licensee or
user;

(c) Being used; or

(d )Being transported to a place of storage or use by a licensee or
permittee or by a person who has lawfully acquired explosive materials under §
55.106.

§ 55.206 Location of magazines.

(a) Outdoor magazines in which high explosives are stored must be
located no closer to inhabited buildings, passenger railways, public highways,
or other magazines in which high explosives are stored, than the minimum
distances specified in the table of distances for storage of explosive materials
in § 55.218.

(b) Outdoor magazines in which low explosives are stored must be
located no closer to inhibited buildings, passenger railways, public highways,
or other magazines in which explosive materials are stored, than the minimum
distances specified in the table of distances for storage of low explosives in §
55.219, except that the table of distances in § 55.224 shall apply to the
storage of special fireworks. The distances shown in § 55.219 may not be reduced
by the presence of barricades.

(c)(1) Outdoor magazines in which blasting agents in quantities of
more than 50 pounds are stored must be located no closer to inhabited buildings,
passenger railways, or public highways than the minimum distances specified in
the table of distances for storage of explosive materials in § 55.218.

(2) Ammonium nitrate and magazines in which blasting agents are stored
must be located no closer to magazines in which high explosives or other
blasting agents are stored than the minimum distances specified in the table of
distances for the separation of ammonium nitrate and blasting agents in §
55.220. However, the minimum distances for magazines in which explosives and
blasting agents are stored from inhabited buildings, etc., may not be less than
the distances specified in the table of distances for storage of explosives
materials in

§ 55.218.

(Amended by TD. ATF-293, 55 FR 3722, Feb. 5, 19901

§ 55.207 Construction of type 1 magazines.

A type 1 magazine is a permanent structure: a building, an igloo or
"Army-type structure", a tunnel, or a dugout. It is to be bullet-resistant,
fire-resistant, weather-resistant, theft-resistant, and ventilated.

(a) Buildings. All building type magazines are to be constructed of
masonry, wood, metal, or a combination of these materials, and have no openings
except for entrances and ventilation. The ground around building magazines must
slope away for drainage or other adequate drainage provided.

(1) Masonry wall construction. Masonry wall construction is to
consist of brick, concrete, tile, cement block, or cinder block and be not less
than 6 inches in thickness. Hollow masonry units used in construction must have
all hollow spaces filled with well-tamped, coarse, dry sand or weak concrete (at
least a mixture of one part cement and eight parts of sand with enough water to
dampen the mixture while tamping in place). Interior walls are to be constructed
of, or covered with, a nonsparking material.

(2) Fabricated metal wall construction. Metal wall construction is to
consist of sectional sheets of steel or aluminum not less than number 14-gauge,
securely fastened to a metal framework. Metal wall construction is either lined
inside with brick, solid cement blocks, hardwood not less than four inches
thick, or will have at least a six inch sand fill between interior and exterior
walls. Interior walls are to be constructed of, or covered with, a nonsparking
material.

(3) Wood frame wall construction. The exterior of outer wood walls is
to be covered with iron or aluminum not less than number 26-gauge. An inner wall
of, or covered with nonsparking material will be constructed so as to provide a
space of not less than six inches between the outer and inner walls. The space
is to be filled with coarse, dry sand or weak concrete.

(4) Floors. Floors are to be constructed of, or covered with, a
nonsparking material and shall be strong enough to bear the weight of the
maximum quantity to be stored. Use of pallets covered with a nonsparking
material is considered equivalent to a floor constructed of or covered with a
nonsparking material.

(5) Foundations. Foundations are to be constructed of brick, concrete,
cement block, stone, or wood posts. If piers or posts are used, in lieu of a
continuous foundation, the space under the buildings is to be enclosed with
metal.

(6) Roof. Except for buildings with fabricated metal roofs, the outer
roof is to be covered with no less than number 26-gauge iron or
aluminum,fastened to at least 7/8 inch sheathing.

(7) Bullet-resistant ceilings or roofs. Where it is possible for a
bullet to be fired directly through the roof and into the magazine at such an
angle that the bullet would strike the explosives within, the magazine is to be
protected by one of the following methods:

(I) A sand tray lined with a layer of building paper, plastic, or
other nonporous material, and filled with not less than four inches of coarse,
dry sand, and located at the tops of inner walls covering the entire ceiling
area, except that portion necessary for ventilation.

(ii) A fabricated metal roof constructed of 3/,6 inch plate steel
lined with four inches of hardwood. (For each additional '/16 inch of plate
steel, the hardwood lining may be decreased one inch.)

(8) Doors. All doors are to be constructed of not less than 1/4 inch
plate steel and lined with at least two inches of hardwood. Hinges and hasps are
to be attached to the doors by welding, riveting or bolting (nuts on inside of
door). They are to be installed in such a manner that the hinges and hasps
cannot be removed when the doors are closed and locked.

(9) Locks. Each door is to be equipped with:

(i) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and staples;

(iii) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTE:

A five-blade lock also meets requirements.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3A inch diameter. Padlocks must be protected with not less than 1/4 inch
steel hoods constructed so as to prevent sawing or lever action on the locks,
hasps, and staples.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

(10) Ventilation. Ventilation is to be provided to prevent dampness
and heating of stored explosive materials. Ventilation openings must be screened
to prevent the entrance of sparks. Ventilation openings in side walls and
foundations must be offset or shielded for bullet-resistant purposes. Magazines
having foundation and roof ventilators with the air circulating between the side
walls and the floors and between the side walls and the ceiling must have a
wooden lattice lining or equivalent to prevent the packages of explosive
materials from being stacked against the side walls and blocking the air
circulation.

(11) Exposed metal. No sparking material is to be exposed to
contact with the stored explosive materials. All ferrous metal nails in the
floor and side walls, which might be exposed to contact with explosive
materials, must be blind nailed, counter-sunk,or covered with a nonsparking
lattice work or other nonsparking material.

(b) Igloos, "Army-type structures", tunnels, anddugouts. Igloo,
"Army-type structure", tunnel, and dugout magazines are to be constructed of
reinforced concrete, masonry, metal, or a combination of these materials. They
must have an earthmound covering of not less than 24 inches on the top, sides
and rear unless the magazine meets the requirements of paragraph (a)(7) of this
section. Interior walls and floors must be constructed of, or covered with, a
nonsparking material. Magazines of this type are also to be constructed in
conformity with the requirements of paragraph (a)(4) and paragraphs (a)(8)
through (1 1) of this section.

§ 55.208 Construction of type 2 magazines.

A type 2 magazine is a box, trailer, semitrailer, or other mobile
facility.

(a) Outdoor magazines.

(1) General. Outdoor magazines are to bebullet-resistant,
fire-resistant, weather-resistant, theft-resistant, and ventilated. They are to
be supported to prevent direct contact with the ground and, if less than one
cubic yard in size, must be securely fastened to a fixed object. The ground
around outdoor magazines must slope away for drainage or other adequate drainage
provided. When unattended, vehicular magazines must have wheels removed or
otherwise effectively immobilized by kingpin locking devices or other methods
approved by the Director.

(2) Exterior construction. The exterior and doors are to be
constructed of not less than 1/4 inch steel and lined with at least two inches
of hardwood. Magazines with top openings will have lids with water-resistant
seals or which overlap the sides by at least one inch when in a closed
position.

(3) Hinges and hasps. Hinges and hasps are to be attached to doors by
welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be
installed so that they cannot be, removed when the doors are closed and
locked.

(4) Locks. Each door is to be equipped with:

(i) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and staples;

(iii) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTES:

1. A five-blade lock also meets requirements.

2. Mobile outdoor magazines need have only one lock, and no hood is
required.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3/8 inch diameter. Padlocks must be protected with not less than
1/4 inch steel hoods constructed so as to prevent sawing or lever action on the
locks, hasps, and staples.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

(b) Indoor magazines.

(1) General. Indoor magazines are to be fire-

resistant and theft-resistant. They need not be bullet-resistant and
weather-resistant if the buildings in which they are stored provide protection
from the weather and from bullet penetration.

No indoor magazine is to be located in a residence or dwelling. The indoor
storage of high explosives must not exceed a quantity of 50 pounds. More than
one indoor magazine may be located in the same building if the total quantity of
explosive materials stored does not exceed 50 pounds. Detonators must be stored
in a separate magazine (except as provided in § 55.213) and the total quantity
of detonators must not exceed 5,000.

(2) Exterior construction. Indoor magazines are to be constructed of
wood or metal according to

one ofthe following specifications:

(1) Wood indoor magazines are to have sides, bottoms and doors
constructed of at least two inches of hardwood and are to be well braced at the
corners. They are to be covered with sheet metal of not less than number
26-gauge (.0179 inches). Nails exposed to the interior of magazines must be
countersunk.

(ii) Metal indoor magazines are to have sides, bottoms and doors
constructed of not less than number 12-gauge (.1046 inches) metal and be lined
inside with a nonsparking material. Edges of metal covers must overlap sides at
least one inch.

(3) Hinges and hasps. Hinges and hasps are to be attached to doors by
welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be
installed so that they cannot be removed when the doors are closed and
locked.

(4) Locks. Each door is to be equipped with:

(i) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and
staples;

(iii) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTE:

A five-blade lock also meets requirements.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3/6 inch diameter. Padlocks must be protected with not less than 1/4
1/4 inch steel hoods constructed so as to prevent sawing or lever action
on the locks, hasps, and staples.

Indoor magazines located in secure rooms that are locked as provided in this
subparagraph may have each door locked with one steel padlock (which need not be
protected by a steel hood) having at least five tumblers and a case-hardened
shackle of at least 3/8 inch diameter, if the door hinges and lock hasps are
securely fastened to the magazine.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

(c) Detonator boxes. Magazines for detonators in quantities of 100 or
less are to have sides, bottoms and doors constructed of not less than number
12-gauge (.1046 inches) metal and lined with a nonsparking material. Hinges and
hasps must be attached so they cannot be removed from the outside. One steel
padlock (which need not be protected by a steel hood) having at least five
tumblers and a case-hardened shackle of at least 3/o inch diameter is sufficient
for locking purposes.

§ 55.209 Construction of type 3 magazines.

A type 3 magazine is a "day-box" or other portable magazine. It must be
fire-resistant, weather-resistant, and theft-resistant. A type 3 magazine is to
be constructed of not less than number 12 gauge (.1046) steel, lined with at
least either 'A inch plywood or 1/2 inch Masonite-type hardboard.

Doors must overlap door openings by at least one inch. Hinges and hasps are
to be attached by welding, riveting or bolting (nuts on inside).

One steel padlock (which need not be protected by a steel hood) having at
least five tumblers and a case-hardened shackle of at least 3//s inch diameter
is sufficient for locking purposes. Explosive materials are not to be left
unattended in type 3 magazines and must be removed to type 1 or 2 magazines for
unattended storage.

§ 55.210 Construction of type 4 magazines.

A type 4 magazine is a building, igloo, or "Armytype structure," tunnel,
dugout, box, trailer, or a semitrailer or other mobile magazine.

(a) Outdoor magazines.

(1) General. Outdoor magazines are to be fire-resistant,
weather-resistant, and theft-resistant. The ground around outdoor magazines must
slope away for drainage or other adequate drainage be provided. When unattended,
vehicular magazines must have wheels removed or otherwise be effectively
immobilized by kingpin locking devices or other methods approved by the
Director.

(2) Construction. Outdoor magazines are to be constructed of masonry,
metal-covered wood, fabricated metal, or a combination of these materials.
Foundations are to be constructed of brick, concrete, cement block, stone, or
metal or wood posts. If piers or posts are used, in lieu of a continuous
foundation, the space under the building is to be enclosed with fire-resistant
material. The walls and floors are to be constructed of, or covered with, a
nonsparking material or lattice work. The doors must be metal or solid wood
covered with metal.

(3) Hinges and hasps. Hinges and hasps are to be attached to doors by
welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be
installed so that they cannot be removed when the doors are closed and
locked.

(4) Locks. Each door is to be equipped with:

(1) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and

staples;

(iii) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTES:

1. A five-blade lock also meets requirements.

2. Mobile outdoor magazines need have only one lock, and no hood is
required.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3/e inch diameter. Padlocks must be protected with not less than 1/4 inch
steel hoods constructed so as to prevent sawing or lever action on the locks,
hasps, and staples.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

(b) Indoor magazines.

(1) General. Indoor magazines are to be fire-resistant and
theft-resistant. They need not be weather-resistant if the buildings in which
they are stored provide protection from the weather.

No indoor magazine is to be located in a residence or dwelling. The indoor
storage of low explosives must not exceed a quantity of 50 pounds. More than one
indoor magazine may be located in the same building if the total quantity of
explosive materials stored does not exceed 50 pounds. Detonators that will not
mass detonate must be stored in a separate magazine and the total number of
electric detonators must not exceed 5,000.

(2) Construction. Indoor magazines are to be constructed of masonry,
metal-covered wood, fabricated metal, or a combination of these materials. The
walls and floors are to be constructed of, or covered with, a nonsparking
material. The doors must be metal or solid wood covered with metal.

(3) Hinges and hasps. Hinges and hasps are to be attached to doors by
welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be
installed so that they cannot be removed when the doors are closed and
locked.

(4) Locks. Each door is to be equipped with:

(i) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and staples;

(iii) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTE:

A five-blade lock also meets requirements.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3/8 inch diameter. Padlocks must be protected with not less than 1/4 inch
steel hoods constructed so as to prevent sawing or lever action on the locks,
hasps, and staples.

Indoor magazines located in secure rooms that are locked as provided in this
subparagraph may have each door locked with one steel padlock (which need not be
protected by a steel hood) having at least five tumblers and a case-hardened
shackle of at least 3/a inch diameter, if the door hinges and lock hasps are
securely fastened to the magazine.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

§ 55.211 Construction of type 5 magazines.

A type 5 magazine is a building, igloo, or "Armytype structure," tunnel,
dugout, box, trailer, or a semitrailer or other mobile facility.

(a) Outdoor magazines.

(1) General. Outdoor magazines are to be weather-resistant, and
theft-resistant. The ground around magazines must slope away for drainage or
other adequate drainage be provided. When unattended, vehicular magazines must
have wheels removed or otherwise be effectively immobilized by kingpin locking
devices or other methods approved by the Director.

(2) Construction. The doors are to be constructed of solid wood or
metal.

(3) Hinges and hasps. Hinges and hasps are to be attached to doors by
welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be
installed so that they cannot be removed when the doors are closed and
locked.

(4) Locks. Each door is to be equipped with:

(i) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and staples;

(Ili) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTE:

A five-blade lock also meets requirements.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3A inch diameter. Padlocks must be protected with not less than 1/4 inch
steel hoods constructed so as to prevent sawing or [ever action on the locks,
hasps, and staples.

Trailers, semitrailers, and similar vehicular magazines may, for each door,
be locked with one steel padlock (which need not be protected by a steel hood)
having at least five tumblers and a casehardened shackle of at least 3/8
inch diameter, if the door hinges and lock hasps are securely fastened to
the magazine and to the door frame.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

(5) Placards. The placards required by Department of Transportation
regulations at 49 CFR Part 172, Subpart F, for the transportation of blasting
agents shall be displayed on all magazines.

(b) Indoor magazines.

(1) General. Indoor magazines are to be theftresistant. They need not
be weather-resistant if the buildings in which they are stored provide
protection from the weather.

No indoor magazine is to be located in a residence or dwelling. Indoor
magazines containing quantities of blasting agents in excess of 50 pounds are
subject to the requirements of § 55.206 of this subpart.

(2) Construction. The doors are to be constructed of wood or
metal.

(3) Hinges and hasps. Hinges and hasps are to be attached to doors by
welding, riveting, or bolting (nuts on inside). Hinges and hasps must be
installed so that they cannot be removed when the doors are closed and
locked.

(4) Locks. Each door is to be equipped with:

(1) Two mortise locks;

(ii) Two padlocks fastened in separate hasps and staples;

(iii) A combination of a mortise lock and a padlock;

(iv) A mortise lock that requires two keys to open; or,

(v) A three-point lock.

EDITOR'S NOTE:

A five-blade lock also meets requirements.

Padlocks must have at least five tumblers and a case-hardened shackle of at
least 3/a inch diameter. Padlocks must be protected with not less than
1/4 inch steel hoods constructed so as to prevent sawing or lever action on the
locks, hasps, and staples.

Indoor magazines located in secure rooms that are locked as provided in this
subparagraph may have each door locked with one steel padlock (which need not be
protected by a steel hood) having at least five tumblers and a case-hardened
shackle of at least 3/8 inch diameter, if the door hinges and lock hasps
are securely fastened to the magazine and to the door frame.

These requirements do not apply to magazine doors that are adequately secured
on the inside by means of a bolt, lock, or bar that cannot be actuated from the
outside.

[Amended by TD. ATF-298, 55 FR 21862, May 30, 19901

§ 55.212 Smoking and open flames.

Smoking, matches, open flames, and spark producing devices are not
permitted:

(a) In any magazine;

(b) Within 50 feet of any outdoor magazine; or

(c) Within any room containing an indoor magazine.

§ 55.213 Quantity and storage restrictions. (a) Explosive
materials in excess of 300,000 pounds or detonators in excess of 20 million are
not to be stored in one magazine unless approved by the Director.

(b) Detonators are not to be stored in the same magazine with other
explosive materials, except under the following circumstances:

(1) In a type 4 magazine, detonators that will not mass detonate may
be stored with electric squibs, safety fuse, igniters, and igniter cord.

(2) In a type 1 or type 2 magazine, detonators may be stored with
delay devices and any of the items listed in paragraph (b)(1) of this
section.

§ 55.214 Storage within types 1, 2, 3, and 4 magazines.

(a) Explosive materials within a magazine are not to be placed
directly against interior walls and must be stored so as not to interfere with
ventilation. To prevent contact of stored explosive materials with walls, a
nonsparking lattice work or other nonsparking material may be used.

(b) Containers of explosive materials are to be stored so that marks
are visible. Stocks of explosive materials are to be stored so they can be
easily counted and checked upon inspection.

(c) Except with respect to fiberboard or other nonmetal containers,
containers of explosive materials are not to be unpacked or repacked inside a
magazine or within 50 feet of a magazine, and must not be unpacked or repacked
close to other explosive materials. Containers of explosive materials must be
closed while being stored.

(d) Tools used for opening or closing containers of explosive
materials are to be of nonsparking materials, except that metal slitters may be
used for opening fiberboard containers. A wood wedge and a fiber, rubber, or
wooden mallet are to be used for opening or closing wood containers of explosive
materials. Metal tools other than nonsparking transfer conveyors are not to be
stored in any magazine containing high explosives.

§ 55.215 Housekeeping.

Magazines are to be kept clean, dry, and free of grit, paper, empty packages
and containers, and rubbish. Floors are to be regularly swept. Brooms and other
utensils used in the cleaning and maintenance of magazines must have no
sparkproducing metal parts, and may be kept in magazines. Floors stained by
leakage from explosive materials are to be cleaned according to instructions of
the explosives manufacturer. When any explosive material has deteriorated it is
to be destroyed in accordance with the advice or instructions of the
manufacturer. The area surrounding magazines is to be kept clear of rubbish,
brush, dry grass, or trees (except live trees more than 10 feet tall), for not
less than 25 feet in all directions. Volatile materials are to be kept a
distance of not less than 50 feet from outdoor magazines. Living foliage which
is used to stabilize the earthen covering of a magazine need not be removed.

§ 55.216 Repair of magazines.

Before repairing the interior of magazines, all explosive materials are to be
removed and the interior cleaned. Before repairing the exterior of magazines,
all explosive materials must be removed if there exists any possibility that
repairs may produce sparks or flame. Explosive materials removed from magazines
under repair must be:

(a) Placed in other magazines appropriate for the storage of those
explosive materials under this subpart, or

(b) Placed a safe distance from the magazines under repair where they
are to be properly guarded and protected until the repairs have been
completed.

§ 55.217 Lighting.

(a) Battery-activated safety lights or batteryactivated safety
lanterns may be used in explosives storage magazines.

(b) Electric lighting used in any explosives storage magazine must
meet the standards prescribed by the "National Electrical Code," (National Fire
Protection Association, NFPA 70-81), for the conditions present in the magazine
at any time. All electrical switches are to be located outside of the magazine
and also meet the standards prescribed by the National Electrical Code.

(c) Copies of invoices, work orders or similar documents which
indicate the lighting complies with the National Electrical Code must be
available for inspection by ATF officers.

TABLE: AMERICAN TABLE OF DISTANCES FOR STORAGE OF EXPLOSIVES (DECEMBER 1910),
AS

REVISED AND APPROVED BY THE INSTITUTE OF MAKERS OF EXPLOSIVES-NOVEMBER 5,
1971.

Notes to the Table of Distances for

Storage of Explosives, above

(1) Terms found in the table of distances for storage of explosive
materials are defined in § 55.1 1.

(2) When two or more storage magazines are located on the same
property, each magazine must comply with the minimum distances specified from
inhabited buildings, railways, and highways, and, in addition, they should be
separated from each other by not less than the distances shown for
"Separation of Magazines," except that the quantity of explosives
contained in cap magazines shall govern in regard to the spacing of said cap
magazines from magazines containing other explosives. If any two or more
magazines are separated from each other by less than the specified
"Separation of Magazines" distances, then such two or more
magazines, as a group, must be considered as one magazine, and the total
quantity of explosives stored in such group must be treated as if stored in a
single magazine located on the site of any magazine of the group, and must
comply with the minimum of distances specified from other magazines, inhabited
buildings, railways, and highways.

(3) All types of blasting caps in strengths through No. 8 cap should
be rated at 1112 lbs. of explosives per 1,000 caps. For strengths higher than
No. 8 cap, consult the manufacturer.

(4) For quantity and distance purposes, detonating cord of 50
or 60 grains per foot should be calculated as equivalent to 9 lbs. of high
explosives per 1,000 feet. Heavier or lighter core loads should be rated
proportionately.

Notes to the Table of Separation

Distances of Ammonium Nitrate and

Blasting Agents From Explosives or

Blasting Agents

(1) This table specifies separation distances to prevent explosion of
ammonium nitrate and ammonium nitrate-based blasting agents by propagation from
nearby stores of high explosives or blasting agents referred to in the table as
the "donor." Ammonium nitrate, by itself, is not considered to be a donor
when applying this table. Ammonium nitrate, ammonium nitrate-fuel oil or
combinations thereof are acceptors. If stores of ammonium nitrate are located
within the sympathetic detonation distance of explosives or blasting agents,
one-half the mass of the ammonium nitrate is to be included in the mass of the
donor.

(2) When the ammonium nitrate and/or blasting agent is not barricaded,
the distances shown in the table must be multiplied by six. These distances
allow for the possibility of high velocity metal fragments from mixers, hoppers,
truck bodies, sheet metal structures, metal containers, and the like which may
enclose the "donor." Where explosives storage is in bullet-resistant
magazines or where the storage is protected by a bullet-resistant wall,
distances and barricade thicknesses in excess of those prescribed in the table
in § 55.218 are not required.

(3) These distances apply to ammonium nitrate that passes the
insensitivity test prescribed in the definition of ammonium nitrate fertilizer
issued by the Fertilizer Institute.' Ammonium nitrate failing to pass the test
must be stored at separation distances in accordance with the table in §
55.218.

(4) These distances apply to blasting agents which pass the
insensitivity test prescribed in regulations of the U.S. Department of
Transportation (49 CFR Part 173).

' Definition and Test Procedures for Ammonium Nitrate Fertilizer: Fertilizer
Institute, 1015 18th St., NW, Washington, DC 20036.

(5) Earth or sand dikes, or enclosures filled with the prescribed
minimum thickness of earth or sand are acceptable artificial barricades. Natural
barricades, such as hills or timber of sufficient density that the surrounding
exposures which require protection cannot be seen from the "donor" when
the trees are bare of leaves, are also acceptable.

(6) For determining the distancestobemaintained from inhabited
buildings, passenger railways, and public highways, use the table in §
55.218.

§ 55.221 Requirements for special fireworks, pyrotechnic compositions, and
explosive materials used in assembling fireworks.

(a) Special fireworks, pyrotechnic compositions and explosive
materials used to assemble fireworks shall be stored at all times as required by
this subpart unless they are in the process of manufacture, assembly, packaging,
or are being transported.

(b) No more than 500 pounds (227 kg) of pyrotechnic compositions or
explosive materials are permitted at one time in any fireworks mixing building,
any building or area in which the pyrotechnic compositions or explosive
materials are pressed or otherwise prepared for finishing or assembly, or any
finishing or assembly building. All pyrotechnic compositions or explosive
materials not in immediate use will be stored in covered, non-ferrous
containers.

(c) The maximum quantity of flash powder permitted in any fireworks
process building is 10 pounds (4.5 kg).

(d) All dry explosive powders and mixtures, partially assembled
special fireworks, and finished special fireworks shall be removed from
fireworks process buildings at the conclusion of a day's operations and placed
in approved magazines. [Added by ID. ATF-293, 55 FR 3717, Feb. 5, 1990]

NOTES to § 55.222, above.

(1) Net weight is the weight of all pyrotechnic compositions, and
explosive materials and fuses only.

(2) The distances in this column apply only with natural or artificial
barricades. If such barricades are not used, the distances must be doubled.

(3) While common fireworks in a finished state are not subject to
regulation, explosive materials used to manufacture or assemble such fireworks
are subject to regulation. Thus, fireworks process buildings where common
fireworks are being processed must meet these requirements.

(4) A maximum of 500 pounds of in-process pyrotechnic compositions,
either loose or in partiallyassembled fireworks, is permitted in any fireworks
process building. Finished special fireworks may not be stored in a fireworks
process building.

(5) A maximum of 10 pounds of flash powder, either in loose form or in
assembled units, is permitted in any fireworks process building. Quantities in
excess of 1 0 pounds must be kept in an approved magazine.

[Added by ID. ATF-293, 55 FR 3717, Feb. 5, 1990]

NOTES to § 55.223, above.

(1) Net weight is the weight of all pyrotechnic
compositions, and explosive materials and fuse only.

(2) While common fireworks in a finished state are not
subject to regulation, explosive materials used to manufacture or assemble such
fireworks are subject to regulation. Thus, fireworks process buildings where
common fireworks are being processed must meet these requirements.

(3) This table does not apply to the separation
distances between fireworks process buildings (see § 55.222) and between
magazines (see §§ 55.218 and 55.224).

(4) The distances in this table apply with or without
artificial or natural barricades or screen barricades. However, the use of
barricades is highly recommended.

[Added by TO. ATF-293, 55 FR 3717, Feb. 5, 1990]

NOTES to § 55.224, above.

(1) Net weight is the weight of all pyrotechnic
compositions, and explosive materials and fuses only.

(2) For the purposes of applying this table, the term
"magazine" also includes fireworks shipping buildings for special
fireworks.

(3) For fireworks storage magazines in use prior to
March 7, 1990, the distances in this table may be halved if properly barricaded
between the magazine and potential receptor sites.

(4) This table does not apply to the storage of bulk
salutes. Use the table at § 55.218.

[Added by TO. ATF-293, 55 FR 3717, Feb. 5, 1990]

Summary of Federal Explosives Storage Requirements

Types of Storage Facilities

STORAGE CLASSES OF EXPLOSIVE

TYPE MATERIALS WHICH MAY BE STORED THEREIN

Type I High Explosives

(permanent) Low Explosives Blasting Agents

Type 2 High Explosives

(portable) Low Explosives Blasting Agents

lype 3 High Explosives

("day box" for Low Explosives

temporary Blasting Agents

storage) Low Explosives

Type 4 Blasting Agents *Electric Blasting Caps

7ype 5 Blasting Agents

* As a result of tests with electric blasting caps, it has been
determined that these blasting caps are not subject to sympathetic detonation.
Therefore, a Type 4 storage facility meets the necessary requirements for
storage of blasting caps that do not mass detonate.

Housekeeping and

Construction Common to

All Types of Storage

Facilities

ITEM REQUIREMENTS

Hinges Shall be attached to doors by

and Welding OR Riveting OR Bolt ing

Hasps (nuts on inside of door).

Locks Each door shall be equipped
with:

Two mortise locks, OR two padlocks fastened in separate hasps and
staples,

OR a combination of a mortise lock and a padlock, OR a mortise lock requiring
2 keys to open OR a three-point lock.Locks shall be five-tumbler or five- blade.
Padlocks shall be protected with 1/4 inch (.25") steel caps constructed to
prevent sawing or lever action on locks/hasps. NOTE: Outdoor/mobile storage
facilities with one steel, case-hardened, five-tumbler padlock, having at least
a 3A inch (.375-) diameter shackle, have been determined by the Director to meet
necessary requirements.

Lighting Electric lighting used in any magazine must meet National Electrical
Code standards for conditions present. All electric switches must be located
outside the magazine and comply with the National Electrical Code. Battery
activated safety lighting may be used in all explosives magazines.

Housekeeping-× Storage facilities
shall be kept clean, dry, and free of grit, paper, empty packages and
containers, and rubbish.

× Explosive materials shall not be
placed directly against interior walls of a storage facility.

× Brooms and other cleaning utensils
shall have no spark-producing metal parts.

× Only tools made of nonsparking
materials shall be used in Types 1,2,3, and 4 magazines. (Metal slifters may be
used for opening fiberboard containers. Metal tools other than nonsparking
transfer conveyors shall not be stored in any magazine containing
explosives.)

× Area surrounding storage facilities
shall be kept clear of rubbish, brush, dry grass or trees less than 101 tall for
not less than 25' in all directions.

× Any other combustible materia be
kept a distance of not less 501 from outdoor storage.

Questions and Answers

18 U.S.C. Chapter 40 and 27 CFR Part 55

Introduction

The following Questions and Answers are intended to aid you in
gaining a better understanding

of: 18 U.S.C. Chapter 40-importation,
Manufacture, Distribution and Storage of

Explosive Materials

... and of the implementing regulations issued
within:

27 CFR Part 55-Commerce in
Explosives Although the listing is by no means all-inclusive, it
does contain a selection of those Questions that ATF receives most often about
explosives.

A Table of Contents reflects the broad categories into which
the Questions have been grouped, and a Subject Index has been included for your
convenience.

These Questions and Answers apply only to Federal law and
regulations. The States and their local jurisdictions have, in many cases,
enacted their own requirements relating to explosives.

Public Law 93-639, approved January 4, 1975, amended the
language contained in 18 U.S.C. § 845(a)(5) which had excepted any "black
powder in quantities not to exceed five pounds", from the law. This
amendment:

Removed Federal controls over commercially manufactured black
powder in quantities of 50 pounds or less (and other items specified therein)
intended to be used solely for sporting, recreational, or cultural purposes in
antique firearms or antique devices, thereby removing black powder acquired
under this exemption from all Federal regulations under Part 55; and

Extended the Federal licensing provisions of 18 U.S.C. § 843 to
include any person selling or

distributing black powder regardless of quantity.

DISCUSSION:

The exemption contained in § 845(a)(5) applies to most retail
sales of black powder. Licensees have the obligation in conducting these sales
to establish to their own satisfaction that persons wanting to acquire black
powder under the exemption intend to use the powder solely for exempted
sporting, recreational, or cultural purposes.

Transaction records are required for nonexempt sales. For
example, sales of black powder to nonlicensees/nonpermittees in quantities
exceeding 50 pounds, or in any quantity when not intended for use as exempted by
the law, require the completion of ATF Form 5400.4, Explosives Transaction
Record (§ 55.126). Other requirements in 27 CFR Part 55 include:

o Storage of black powder by licensees in accordance
with Subpart K (§ 55.201, ff.); and,

o Entries for black powder in the daily summary of magazine
transactions (§ 55.127).

Additionally ...

Compliance with Federal law and regulations in
no way exempts persons from compliance with State and local
requirements.

[Under the exemption a nonlicensee/nonpermittee may import
commercially manufactured black powder in quantity not to exceed 50 pounds (§
55.108(b)). There is no ATF form to deliver to customs and an individual
importing under the exemption has to comply with customs procedure at the port
of entry.]

Table of Contents

General 1-15

Licenses & Permits 16-38

Recordkeeping 39-46

Storage 47-58

Fireworks 59-64

Subject Index

Accidents involving explosives: 10

Accountability for explosive materials: 41

Activities covered by licenses and permits:

17,25-31

Additions to storage facilities: 53

Age-Licensees and permittees: 19

Age-Purchasers: 2

Ammunition: 11,54-56

American Table of Distances: 49-51 Application for license or permit:

18,19,24,36,37

Binary explosives: 12

Black powder fuses: 54,55

Black powder, license to sell: 18

Changes in storage facilities: 53 Contiguous State transactions: 4,5,38
Continuing business pending license or permit renewal: 37

Daily summary of magazine transactions: 41

Dealer's license: 23,25,33

Dealing in explosives, persons prohibited: 3

Distances, tables of: 49-51,57

Duration of license or permit: 21

Explosives List: 15,59

Federal explosives law-Penalties: 7

Federal explosives law-Who it affects: 1

Fees for licenses and permits: 23

Fireworks, general: 59-64

FORMS (Obsolete Numbers in Parentheses): ATF F 5400.4 (471 0),
Explosives Transaction Record: 6,8,44

ATF F 5400.5 (4712), Report of Theft or

Loss of Explosive Materials: 43

ATF F 5400.6 (4709), User-Limited Permit: 21,23

ATF F 5400.8 (4721), Explosives Delivery Record: 35

ATF F 5400.13/5400.16, (4705; 4707) Application For License or Permit:
19

ATF F 5400.14/5400.15, Part 1 (4706, Part 1; 4708, Part 1), License or
Permit: 19,23

ATF F 5400.14/5400.15, Part III (4706, Part 111; 4708, Part 111), Renewal of
Explosives License or Permit: 36

ATF F 5400.21, Application/Permit

User-Limited Special Fireworks: 21

Where to order/obtain: 44

Importation: 27

lmporter's license: 23,26,27,30

Inhabited building: 57

Inspection of storage facilities: 52

Inventory requirement: 46

Investigations-Accidents: 10

Investigations-Applications for license or

permit: 24

Interstate commerce: 1,4,5,38,58

Intrastate transportation of explosives: 4,16

Licenses, general: 16-38

Local requirements: 19,20

Location, more than one: 29

Loss of explosives: 9,43

Magazine records: 41,42,46

Manufacturer-limited license: 21,23

Manufacturer's license: 23,28,30,31

Model rocket kits: 13

Notification-Storage facilities: 53

Notification-Thefts of explosives: 9,43

On-site manufacturing: 31

Penalty for purchasers providing false

information: 7

Permits, general: 16-24,32,37

Permits, when not required: 4,16,32,33

PURCHASE OF EXPLOSIVES:

By employee of licensee/permittee: 34,35

False information: 7

For one's own use: 4,16

Forms executed: 6,27,35

In bordering States: 4,5,38

Notification of Government: 8

Persons prohibited from purchasing: 2

Qualifying for Federal license or permit: 3,19

Recording, general: 39-46

Renewal of licenses or permits: 36,37

Reporting theft or loss of explosives: 9,43

Residence, storing explosives in: 49

Revocation of license or permit: 22

Rocket propellant: 13

Sales of explosives-Persons prohibited from

dealing: 3

Sales of explosives-To residents of adjoining

States: 38

Separate license-Required for each

business location: 29

Separate license-Required for

manufacturing and importing: 30

Smokeless powder: 11,56

State requirements: 19,20

Storage requirements: 16,47-58,62

Stolen explosives: 9

Thefts of explosives: 9,43

Transportation of explosives: 14

User-limited permit: 21,23

User's permit (see Permits, general)

General Questions

1. Who is affected by the Federal explosives
law?

The law affects all persons who import, manufacture, deal in,
purchase, use or store explosive materials. It also affects those who ship,
transport, or receive explosive materials in interstate commerce. See Question
20 for State requirements. [Also, see § 55.141 for exemptions.]

2. To whom is the distribution of explosive materials
by licensees prohibited?

A. Prohibited Persons:

A licensee shall not knowingly distribute any explosive
materials to any person who:

(1) Is under 21 years of age;

(2) Has been convicted in any court of a crime
punishable by imprisonment for a term exceeding one year;

(3) Is under indictment for a crime punishable by
imprisonment for a term exceeding one year,

(4) Is a fugitive from justice;

(5) Is an unlawful user of or addicted to anycontrolled substance (as
defined in section 102 of the Controlled Substances Act (21 U.S.C. 802));
or

(6) Has been adjudicated a mental defective. [18 U.S.C.842(d)]

B. Other Unlawful Distributions:

A licensee shall not knowingly distribute any explosive materials to any
person who:

(1) The licensee knows or has reason to believe does not reside in the
State in which the licensee's place of business is located (unless a "contiguous
State" provision applies. [See Question # 4.]) [18U.S.C. 842(b)(3)1;

(2) Is in any State where the purchase, possession,or use of explosive
materials would be in

violation of any State law or any published ordinance applicable at the place
of distribution [18 U.S.C. 842(e)];

(3) The licensee has reason to believe intends to transport the
explosive materials into a State where the purchase, possession, or use of
explosive materials is prohibited or which does not permit its residents to
transport or ship explosive materials into the State or to receive explosive
materials in the State [18 U.S.C. 842(c)]; or,

(4) The licensee has reasonable cause to believe intends to use the
explosive materials for other than a lawful purpose. [§ 55.106]

3. Does the law prevent some persons from dealing in
explosives?

Yes. The same classes of persons listed in Answer A to Question # 2 may not
obtain a Fed eral

explosives license. In addition, prospective licensees must meet the other
requirements set forth in § 55.49. [See Question 19.]

4. How does the law affect your dispositions to persons who do not
have a license or permit?

A person who has not acquired a permit from the Federal Government may, if
not barred as discussed in Questions # 2 and 3, purchase explosives only in the
State in which he resides.

There are two exceptions:

(1) Interstate purchases without permits are allowed if the
purchaser's State of residence has

passed specific legislation allowing its citizens to

transport into, or receive in, that State explosive materials purchased in a
bordering, or "contiguous," State; and

(2) No form is required for the purchase of up to 50 pounds of black
powder for sporting, recreational, or cultural purposes in antique firearms or
antique devices. [§ 55.105]

5. What States allow their citizens to purchase explosive materials in
bordering States?

Please contact your State Attorney General or State Fire Marshal, whichever
is appropriate, for a definitive answer. States of Delaware, Kentucky, Vermont,
Washington, and Wyoming are understood to allow such purchases for black powder,
only.

6. When a person purchases explosives, does he have to sign
anything?

Yes. ATF Form 5400.4 will be executed by the buyer for purchases of high and
low explosives, and blasting agents. A Federal explosives licensee or permittee
who purchases explosive materials is not required to complete Form 5400.4. [§
55.1261

7. Does Federal law and regulations provide penalties for
purchasers who give false information to a licensee at the time of
purchase?

Yes. The penalty for providing false information or misrepresented
identification is a maximum 10 years' imprisonment and/or a $10,000 fine. [§
55.162]

8. When a person purchases explosive materials, is the Federal Government
notified?

No. The executed Form 5400.4 remains on the dealer's premises. [§ 55-126]

9. Are thefts of explosives covered by the law?

Yes. Any person discovering a theft or loss of explosive materials from stock
must, in accordance with regulations, report it to ATF and to the appropriate
local authorities within 24 hours. [18 U.S.C. 842(k); §§ 55.30, 55.1271

Also, it is unlawful to receive, conceal, transport, ship, store, barter,
sell or dispose of any explosive materials knowing or having reasonable cause to
believe that such explosive materials were stolen. [18 U.S.C. 842(h); §
55.281

10.Will anyone investigate accidents involving explosives?

ATF is authorized to inspect the site of any accident or fire where there is
reason to believe that explosive materials were involved. Other Federal
agencies, or State or local agencies, might also investigate such incidents,
depending on the circumstances. [§ 55.31]

11. Is small arms ammunition affected by this law?

No. The law specifically exempts small arms ammunition and components
thereof; therefore, the primers and smokeless propellants used in small arms
ammunition are exempt from the provisions of the law. [§ 55.141]

12. Are binary explosives subject to regulatory controls of the law?

Until the compounds are mixed they are not classified as explosives and,
therefore, are not subject to control. However, once mixed, binary explosives
are subject to all applicable Federal requirements.

A person who regularly and continually combines compounds of binary materials
to manufacture an explosive is engaged in the business of manufacturing
explosives and shall be required to be licensed as a manufacturer. [ATF Ruling
75-31]

13. Is the rocket propellant in model rocket kits considered
to be an explosive?

No. [§ 55.1411

14. Does ATF have any regulations governing the actual
transportation of explosives?

No. This authority is vested in the Department of Transportation. [18
U.S.C. 845(a)(1); § 55.1411

15. What is the Explosives List?

The Explosives List is a comprehensive (but not all-inclusive) listing of the
more common explosive materials which have been determined to be within the
coverage of Chapter 40. The List is published annually by the Director, ATF. [18
U.S.C. 841(d); § 55.23]

Licenses & Permits

16. I want to buy a small quantity of dynamite from my local dealer
to use on my property. Do I need a Federal user's permit?

No, provided it is purchased in your State of residence and not transported
across State lines. A Federal user's permit is required when a
nonlicensee acquires or transports explosives in interstate or foreign commerce.
It allows transactions for personal use, only. [See Question 17.]

Federal explosives storage requirements apply to nonlicensees and
nonpermittees as well as to licensees and permittees. Except for those items and
activities given exempt status under 18 U.S.C. 845 [also see § 55.141], all
persons who purchase explosives (either intrastate or interstate) and who intend
to store same, must have storage facilities which meet the requirements of 27
CFR Part 55, Subpart K, "Storage," and as is required by law, 18 U.S.C.

§ 8420).

17. What activities are covered by licenses and permits?

Licenses are issued to explosives manufacturers, importers, and dealers. Any
individual or business entity intending to engage in any of these activities
must first obtain a license. A permit allows acquisition and transportation of
explosives in interstate and foreign commerce. [§ 55.41]

A separate license is needed for each premises where an explosives business
or activity is conducted [but see Questions 29 and 31]. Only one permit is
needed by a permittee who uses explosives in more than one location. [§
55.411

18. May black powder be sold without a license?

No. Anyone who sells black powder, regardless of quantity, must be licensed
as an explosives dealer. [§ 55.411

19. How would a person qualify for a Federal license or
permit?

The Chief, Firearms and Explosives Licensing Center, will approve a properly
completed application for a license or permit, if the applicant:

(1) Is 21 years of age or over;

(2) Is not a person to whom distribution of explosive materials is
prohibited under the Act;

(3) Has not willfully violated any provisions of theAct or this
part;

(4) Has not knowingly withheld information or has not made any false
or fictitious statement intended or likely to deceive, concerning his
application;

(5) Has premises in the State from which he intends to conduct
business or operations;

(6) Has storage for the class (as described in § 55.202) of explosive
materials described on the application, unless he establishes that the business
or operations to be conducted will not require the storage of explosive
materials; and

(7) Is familiar with and understands all published State laws and
local ordinances relating to explosive materials for the location in which he
intends to do business. [§ 55.491

ATF Form 5400.13/5400.16 must be filed to obtain a license or permit. [§
55.451

20. Does a Federal license or permit exempt the
holder from State or local requirements?

No. A license or permit confers no right or privilege to
conduct business or operations, including storage, contrary to State or other
law. [§ 55.621 Where a situation arises that State or local requirements are
more stringent than the Federal, the more stringent requirement
must be followed.

21. For what period of time are licenses and permits
valid?

×An original license or permit is
issued for a period of one year.

×A renewal license or permit is issued
for a period of 3 years.

However:

×A manufacturer-limited license is
issued for a period of 30 days.

×A user-limited permit (ATF Form
5400.6) and a user-limited special fireworks permit (ATF Form 5400.21) are valid
only for a single purchase transaction. [§ 55.511

22. Can a license or permit be revoked?

Yes. The regional director (compliance) may revoke any license
or permit if the holder has violated any provisions of the law or regulations.
[§ 55.71, et seq.]

23. What are the fees for licenses and permits?

A. Original License Fees Are:

× Manufacturer-$50

× Manufacturer-Limited (nonrenewable)-$5

× Importer-$50

× Dealer-$20

B. Original Permit Fees Are:

× User-$20

× User-Limited (nonrenewable)-$2

C. Renewal License and Permit Fees:

One-half the original fees; good for a 3-year period. Also see Question # 21
regarding the duration of licenses and permits. [§§ 55.42, 55.431

24. Will the Government investigate an applicant for a license or
permit?

ATF may investigate any applicant, and inspect all places of storage before
issuing a license or permit. [§ 55.491

25. What may a licensed dealer do?

A licensed dealer may engage in the business of distributing explosive
materials at wholesale or retail. [§ 55.11: Definition of 'dealer'.]

26. What may a licensed importer do?

A licensed importer may engage in the business of
importing or bringing explosive materials into the United States for sale or
distribution. [§ 55.1 1: Definition of 'importer')

It is not necessary for a licensed importer to also obtain a
dealer's license in order to engage in business on his licensed premises as a
dealer in explosive materials. [§ 55.411

27. How may I import explosives?

Any licensed importer or permittee may import explosives by
providing the Customs Service a copy of the license or permit. [§§ 55.41;
55.108]

Note, however, that in the case of propellant powder or other
components of small arms ammunition, an approved ATF Form 6 must be provided to
the Customs Service. [27 CFR § 178.113] Also, see Question 56.

28. What may a licensed manufacturer do?

Licensed manufacturers may engage in the business of
manufacturing explosive materials for purposes of sale or distribution, or for
their own use; BUT, a licensed manufacturer-limited may manufacture
explosive materials for his own use, only. [§ 55.1 11

It is not necessary for a licensed manufacturer to also obtain
a dealer's license in order to engage in business on his licensed premises as a
dealer in explosive materials. [§ 55.41 ]

29. Is a separate license required for each location
where business is conducted?

Yes. A separate license is required for each location where
business is conducted. However, a separate license is not required
for:

(1) Facilities used only for the storage of explosive
materials; and,

(2) A location used solely for the storage of
records relating to the business. [§ 55.41 ]

30. Must a person who engages in the business of both
manufacturing and importing at the same location have both
licenses?

Yes. The licenses for manufacturing and importing allow a
person to do separate and distinct things, and a separate license is required
for each activity.

However, a manufacturer or an importer does not need a separate
dealer's license in order to also distribute explosive materials from his
licensed premises. [§ 55.41]

31. Does a licensed manufacturer need a separatelicense for his
own on-site manufacturing?

No. As long as the on-site manufacturing takes placein the ATF
Region in which the manufacturer's license is held. [§ 55.41 ]

32. Are companies having headquarters in one State
but doing business in another State required to have a permit in order to
acquire explosive materials in the latter State?

No. Companies engaged in business within a State acquire
residency in that State by virtue of the work being performed (but check out the
State and local requirements). Explosives purchases made by these companies in
the State where work is being performed are considered by ATF to have been made
within their State of residence; therefore, no permit is required. [ATF Ruling
76-4]

33. Does a licensed dealer need a permit to use explosives outside
the State in which his business premises is located?

No. The dealer, by virtue of his license, is authorized to acquire and to
transport explosives in interstate commerce. [§ 55.41]

34. How does the truck driver for an explosives licensee/permittee quality to
purchase explosives for his employer?

The driver must be on the current certified list of representatives or agents
authorized to acquire explosives on behalf of that employer. [§ 55.1051

35. When an explosives licensee/permittee sends his
truck driver to the distributor's premises for explosives which have been
purchased by the licensee/permittee, will the driver be required to sign
any forms?

The driver will be required to identify himself and to complete
and sign Section A of Form 5400.8. [§ 55-1031

36. Will a licensee or permittee be notified in
advance when his license or permit needs to be renewed?

Yes. Prior to expiration of the license or permit, a licensee
or permittee will be notified by way of ATF Form 5400.14/5400.15, Part 111,
"Renewal of Explosives License or Permit," an application form which must be
completed and timely filed in order to effect renewal. [§ 55.461

37. I have timely filed my application for renewal but I
have not received my renewed licenseor permit. May I continue in
business? If so, how long?

Yes. You may continue to operate pursuant to your current
license or permit until the application for renewal is acted upon. [18 U.S.C.
5581

38. When may sales of explosives by licensed dealers
be made to residents of adjoining States?

Sales may be made legally to a resident of a bordering State
only if that State has enacted specific legislation allowing its residents to
purchase explosive materials in a bordering State. (Also, refer to Question # 5)
[§§ 55.26, 55.105]

Recordkeeping

39. Does a person who obtains a license or permit
have to keep records of explosive materials transactions?

Yes. A licensee or permittee must keep records of all
acquisitions and dispositions of explosive materials. [§ 55.107]

40. How does one account for explosive materials in his
records?

If acquisitions are recorded by weight, then disbursements must
also be recorded by weight. If acquisitions are recorded by physical count, then
disbursements must also be recorded by physical count.

41. Must a licensee or permittee maintain a daily summary of
magazine transactions?

Yes. After the initial inventory required by regulations has been taken, the
inventory shall be entered in a record of daily transactions. At the close of
business each day, explosives shall be recorded by class, in accordance with the
three classes set forth in § 55.202, as to the total quantity received in and
removed from each magazine during the day and as to totals remaining on hand at
the end of each day. [§ 55.1271

42. Must I keep my explosives records on the site of the magazine
to which these records pertain?

No. A licensee or permittee proprietor of an approved explosives storage
facility may keep the records required by § 55.127 at a centrally located area
on the premises, provided a separate record of daily transactions for each
magazine is maintained.

43. When must a report be made of a shortage or theft of explosive
materials?

Any discrepancy which might indicate a theft or loss shall, within 24 hours,
be reported by telephone to ATF (toll free: 800-424-9555). Licensees and
permittees must confirm the report by filing a completed Form 5400.5 with the
nearest ATF District Office. All other persons must confirm the report by
letter to the nearest ATF Office. A report must also be made to local
authorities. [§§ 55.30, 55.165]

44. Where may I obtain additional copies of ATF Form
5400.4?

Requests for forms should be mailed to the ATF Distribution Center, 7943
Angus Court, Springfield, Virginia 22153. They are available at no charge. [§
55.21(c)]

45. What forms will the buyer of black powder have to sign at the
time of purchase?

If 50 pounds or less is being bought, intended to be used solely for
sporting, recreational, or cultural purposes in antique firearms or antique
devices, no form is required.

If black powder is being bought for any other purpose (regardless of
quantity), ATF Form 5400.4 shall be signed by the buyer.

46. Is there a requirement for an annual inventory?

An inventory is required to be taken at least once a year. The inventory will
be taken by type (blasting caps, dynamite, etc.) location and quantity. [§§
55.122-55.1251

Storage

47. Who must meet storage requirements?

All persons who store explosive materials shall store them in conformity with
the provisions ofSubpart K of the regulations. [§§ 55.29, 55.164, 55.201]

48. What are the classes of explosive materials for storage purposes?

There are three classes of explosive materials:

(1) High explosives. (For example, dynamite, flash powders, and bulk
salutes.)

(2) Low explosives. (For example, black powder, safety fuses,
igniters, igniter cords, fuse lighters, and "special fireworks" defined as Class
B explosives by U.S. Department of Transportation regulations in 49 CFR Part
173, except for bulk salutes.)

(3) Blasting agents. (For example, ammonium nitrate-fuel oil and
certain water gels.) [§ 55.2021

49. May a person store explosives in a residence or dwelling?

No.A person may not store explosive materials in a residence or dwelling.
Under certain conditions, storage facilities may be located in a warehouse or in
a wholesale or retail establishment, the maximum allowable quantity being 50
pounds. [§§ 55.208(b), 55.21 0(b), 55.21 1 (b)]

50. What is the "American Table of Distances?"

This Table lists the minimum acceptable distances separating
high explosives storage facilities from inhabited buildings, passenger
railroads, public highways, and other explosives storage facilities. This Table
is seen in § 55.218 of the regulations.

51. When low and high explosives are stored together, how is the
distance determined to meet table of distance requirements?

The total weight is considered to be high explosives. The table in § 55.218
would apply.

52. Is it necessary to inspect one's storage facilities on a
regular basis?

Yes. Any person storing explosives must inspect his storage facilities at
intervals not greater than seven days to determine whether the contents are
intact or if theft or unauthorized entry has occurred. [§ 55 .204]

53. What are the requirements for relocating an approved storage
facility or making changes or additions to the same?

Notification of ATF is usually required. See § 55.63 for details.

54. Is any type of black powder fuse exempt from storage
requirements?

Yes, 3/32-inch and other external burning pyrotechnic hobby fuses are exempt
from the explosives law and regulations. [§55.11: Definition of ‘ammunition'; §
55.141]

55. With the exception of 3/32-inch pyrotechnic safety fuse for use
in small arms, must black powder fuses generally be stored in
approved storage facilities?

Yes. Igniter fuses, time fuses, blasting fuses, safety fuses, or other black
powder fuses by whatever name known, designed for use with high explosives in
blasting operations, must be stored in approved storage facilities. [§55.11:
Definition of ammunition'; § 55.182]

56. Is smokeless powder for use in small arms ammunition
subject to storage require. ments?

No. Smokeless powder for use in small arms ammunition is exempt from this
Part (27 CFR Part 55). However, smokeless powder intended for this purpose is
subject to control under 27 CFR Part 178, "Commerce in Firearms and Ammunition,"
as a component of ammunition. [§ 55.141; § 178.11: Definition of
'ammunition']

57. My office building, in which several company employees work during the
day in connection with my explosives business, is located in the general
area of my explosive storage facility. Do the regulations and the Table
of Distances apply to this office building as an inhabited
building?

No. A building, such as an office building or repair shop, which is part of
the premises of an explosives licensee or permittee and is used in connection
with the manufacture, transportation, storage, or use of explosive materials is
not an "inhabited building." [§55.11: Definition of 'inhabited building')

58. 1 bought 12 sticks of dynamite to blast stumps on my property.
I have four sticks left over. May I give them to my brother, who does
not have a Federal explosives license or permit?

You may give them to your brother only if he resides in the same State in
which you reside. If either you or your brother store the dynamite, storage must
be in conformity with Federal regulations. [See Question 47.]

Fireworks

59. Are display fireworks considered to be explosives?

Yes. Display fireworks contain chemical mixtures which are classified as
explosive materials in the Explosives List compiled by the
Director, ATF. These fireworks fall within the category of low explosives [§
55.202(b)], and are regulated in the same manner as are other low
explosives.

The Department of Transportation (DOT) classifies display fireworks as Class
B explosives in 49 CFR 173.88(d).

60. What fireworks are exempted from regulation?

Common fireworks which are classified by the Department of Transportation
(DOT) as Class C explosives are exempt from regulation. Common fireworks are
generally small, visible-effects fireworks, but also include small firecrackers
less than 11/2-inch in length and 1/4-inch in diameter with a pyrotechnic charge
of less than two grains. A list of common fireworks is contained in DOT
regulations, 49 CFR § 173.100(r).

61. Is a license required to manufacture fireworks?

No. A manufacturer of fireworks needs to have a license only if he
manufactures fireworks ingredients which constitute explosive materials. (Also
see Question # 63.)

62. Are certain fireworks subject to Federal storage
regulations?

Yes. All special or display fireworks which are defined by the Department of
Transportation (DOT) as Class B explosives in 49 CFR 173.88(d) are considered to
be low explosives and must be stored in type 4 storage facilities.

This Class includes all fireworks which are designed to produce an audible
effect and contain a pyrotechnic charge in excess of two grains.

Items such as cherry bombs, silver salutes, and M-80's are illegal fireworks
banned from interstate

commerce. (Exception-use by Government Agencies)

63. Would a manufacturer of common fireworks,which are exempt from
regulation, need a

permit in order to acquire explosive ingredients for fireworks he
manufactures?

Yes. If he acquires such ingredients in interstate or foreign commerce.

64. Although a manufacturer of display fireworks has no manufacturer's
license because he does not manufacture explosive ingredients for such
fireworks, does he need a license to deal in display fireworks?

Yes, he would need a license to deal in display fireworks.

ATF Explosives Rulings and
Procedures

Following are digests of ATF determinations regarding explosives matters
which a ' re of special significance to Federal explosives licensees and
permittees, and to ATF Compliance and Law Enforcement personnel. The full text
of each of these determinations can be found in the ATF Cumulative
Bulletin (1973-1978), and is cited by year, "CB," and page number at the
end of each item.

On August 7, 1981, Part 181 of Title 27, CFR was redesignated as Part 55. The
ATF Rulings and Procedures issued prior to August 1981 and still in effect are
presented here with current, Part 55 regulation citations and the current titles
of ATF personnel, where applicable.

Subject Index

(1) ATF Procedure 75-4: Descriptions of Explosives Storage
Facilities.

(2) ATF Ruling 75-20: Meaning of Terms, "inhabited
Building."

(3) ATF Ruling 75-21: Construction of Storage Facilities by the
Department of DefenseConcrete Floors

(4) ATF Ruling 75-31: Meaning of Terms, "Engaged in the
Business"

(5) ATF Ruling 75-35: Identification of Explosive Materials

(6) ATF Ruling 76-4: Meaning of Terms, "State of Residence"

(7) ATF Ruling 76-10: One Sale With Multiple Deliveries

(8) ATF Ruling 76-18: Alternate Magazine Construction
Stand-ards

(9) ATF Ruling 77-13: Reporting Theft or Loss of Explosive
Materials

(10)ATF Ruling 77-24: Storage of Electric Blasting Caps With
Other Explosive Materials

(1) 27 CFR 55.41: LICENSES AND PERMITS

-GENERAL

Requirements for descriptions of explosives storage
facilities.

ATF Proc. 75-4

This Procedure (which was incorporated in Industry Circular
75-10; effective November 1, 1975) revised requirements for descriptions of
explosives storage facilities that must be filed by applicants intending to
store explosive materials.

The Director, ATF, determined that this additional descriptive
information was and is required in order to ensure compliance with the law and
regulations. Accordingly, Forms 4705 and 4707 (now ATF F 5400.13/5400.16,
"Application For License or Permit") were revised.

Following is the text of the Procedure, as amended:

Secs. 3 & 4. Licenses and Permits. A person
intending to engage in business as an importer, manufacturer or dealer in
explosive materials, or who is intending to acquire, transport, ship, import or
receive explosive materials in interstate or foreign commerce for his own use
and not for resale, shall complete ATF F 5400.13/5400.16, "Application For
License or Permit," in accordance with the instructions on the form, and forward
the form with the license or permit fee to the office specified on the form. If
approved, the Chief, Firearms and Explosives Licensing Center will issue a
license or permit to the applicant. At the time of renewal of a license or
permit, the Chief, Firearms and Explosives Licensing Center may require the
filing of a new or amended application, or additional descriptive pages, to be
attached to the application upon a determination that the currently approved
application is inaccurate or does not fully describe the storage facilities. If
the application is denied, the applicant will be advised in writing of the
reasons for the denial.

Sec. 5. Storage.

.01 If explosive materials are to be stored, the
requirements of 27 CFR Part 55, Subpart K-Storage, must be complied with before
the application will be approved. An applicant for a license or permit who
intends to store explosive materials shall fully describe the intended storage
facilities to support the applicant's affirmation that the storage facilities
meet the requirements set forth in 27 CFR Part 55, Subpart K-Storage.

.02 The description should, as a minimum, include the
following information:

(a) The type of magazine (building, igloo, tunnel,
portable box, portable trailer, etc.).

(b) The location and distance from applicant's place of
business.

(c) The distance to the next nearest storage
magazine.

(d) A description of significant terrain features and
physical structures, such as buildings, roads, utilities and other facilities
which could be damaged if the magazine exploded. Indicate the distance between
the magazine and the feature.

(e) The materials (including dimensions and thicknesses)
used for the structure (e.g., concrete, corrugated iron over wood, plywood, tin
and earth, etc.).

(f) The security, physical safeguards, locks, safety
equipment, and anti-theft measures.

(g) The dimensions and capacity of each magazine.

(h) The class of explosive materials to be stored in
each magazine.

(i) The owner(s) of the magazine, if other than the
applicant.

(j) The names and telephone numbers of individuals who could open the
magazines for inspection by ATF officers.

(k) Any special conditions, such as inaccessibility in winter,
etc.

(l) [ADDENDUM] A diagram of the premises, providing much of the
required, descriptive information set out above. (Preparation by an engineer is
not required.) [75 CB 791

(2) 27 CFR 55.1 1: MEANING OF TERMS

(Also § 55.206)

An office or repair shop used in connection with the manufacture, etc. of
explosive materials is not an "inhabited building."

ATF Rul. 75-20

ATF has held that a building, such as an office or
repair shop, which is a part of the premises of an explosives manufacturer and
is used in connection with the manufacture, transportation, storage, or use of
explosive materials, is not an "inhabited building."

Section 55.11 of 27 CFR defines inhabited building as
"any building regularly occupied in whole or in part as a habitation for human
beings, or any church, schoolhouse, railroad station, store, or other structure
where people are accustomed to assemble, except any building occupied in
connection with the manufacture, transportation, storage, or use of explosive
materials."

Regulations in 27 CFR §§ 55.206 and 55.218 set forth provisions
concerning the location of storage facilities and the minimum distances such
storage facilities may be located from, among other things, "inhabited
buildings."

These provisions are intended to provide protection to persons
who inhabit buildings located near premises where explosives are manufactured,
stored, etc. However, it is the intent of § 55.1 1 to exempt buildings used by
the explosives industry in connection with the manufacture, transportation,
storage, or use of explosive materials from the table of distance requirements
on "inhabited buildings." [75 CB 64]

(3) 27 CFR 55.207: CONSTRUCTION OF

TYPE 1 MAGAZINES

(Also § 55.210)

Certain explosives storage facilities meeting standards of
construction prescribed by the Department of Defense Explosives Safety Board for
such storage are approved by the Bureau.

ATF Rul. 75-21

ATF has held that explosives storage facilities with
smooth-finished concrete floors that were constructed under contract for the use
of the Department of Defense (DOD) and that are presently being leased to
licensees and permittees for the

storage of commercial explosives are considered to be in
compliance with the requirements for nonsparking floors, as set forth in 27 CFR
§§ 55.207(a)(4), 55.207(b), and 55.210, for the storage of all types of fully
packaged explosives, pyrotechnics and propellants, with the exception of black
powder.

Any other such magazines which have smooth finished concrete
floors and which meet or exceed DOD construction specifications will also be
considered to be in compliance with the requirements of Part 55 with respect to
nonsparking floors.

It is the responsibility of the licensee or permittee to
provide verification that such facilities were manufactured under DOD
specifications or that the facilities meet or exceed such specification
standards.

If the regional director (compliance) determines that the
concrete floors of type 1 or type 4 magazines do not meet the preceding
requirements, he will require such floors to be covered with a nonsparking
material, such as epoxy paint or mastic. [75 CB 67]

(4) 27 CFR 55.41: LICENSES AND, PERMITS

-GENERAL

Certain companies that manufacture explosive materials for use in their own
operations are required to obtain licenses as manufacturers of explosive
materials.

ATF Rul. 75-31

ATF has held that companies, such as public
utility companies engaged in line and facility construction, which manufacture
explosives on a regular or continual basis are considered to be engaged in the
business of manufacturing explosive materials and must be appropriately licensed
as required by 18 U.S.C. 842.

The term "manufacturer" is defined in 18 U.S.C. 841(h)
as "any person engaged in the business of manufacturing
explosive materialsfor purposes of sale or distribution or for his own
use."

Although the term "engaged in the business" is
not susceptible to a rigid definition within 18 U.S.C. §§ 841-848, it is
interpreted to imply an element of continuity or habitual practice; an element
clearly present in the operations of companies described herein.

Therefore, these companies are considered to be "engaged in the
business" and must be licensed as explosives manufacturers. [75 CB 651

(5) 27 CFR 55.109: IDENTIFICATION OF

EXPLOSIVE MATERIALS

Methods of marking containers of explosive materials are prescribed.

ATF Rul. 75-35

ATF has held that any method or combination of methods
for affixing the required marks to the immediate container of explosive
materials, or outside container used in the packaging thereof, is authorized
provided the identifying marks:

(1) Are legible;

(2) Show all required information; and,

(3) Are not rendered indecipherable by extended periods
of storage.

Where it is desired to utilize a coding system and to omit
printed markings on the container, a letterhead application displaying the
coding to be used and the manner of its application shall be filed with and
approved by the Director, ATF, prior to the use of the proposed coding. Further,
where a manufacturer operates his plant for only one shift during the day, the
shift of manufacture need not be shown.

It was found that liquid components of explosive materials
stored for a period of time in polyethylene or other soft containers would seep
through the container walls, tending to render illegible the inked, identifying
marks on the container.

A manufacturer's proposal [subsequently approved) of using a
system of perforated numbers and code symbols (similar that used on cancelled
checks) to mark containers in addition to other identifying marks stamped in
ink, was determined to continue to provide the identification required by 27 CFR
55 .109, even if the ink later became illegible. [75 CB 65]

(6) 27 CFR 55.1 1: MEANING OF TERMS

-STATE OF RESIDENCE

"State of residence" of business entities who use explosive
materials; distribution of explosive materials by licensees to out-of-State
business entities other than licensees and permittees; and, distribution to
nonresident employees of such entities are discussed.

ATF Rul. 76-4

ATF was asked to interpret the term "State of
residence" (in § 55.1 1) as it:

(1) Pertains to the distribution of explosive materials
to out-of-State corporations and other business entities other than licensees
and permittees; and

(2) Relates to the distribution of explosive materials
to nonresident employees of such business entities.

The Business Entity

If a person is a corporation or other business entity, "State of
residence" means the State in which such corporation or other business
entity maintains a "place of business." A business entity establishing
another "place of business" or "job site" in another State would
acquire a "State of residence" in that State as well. This means
that a company engaged in construction work would acquire a residence in each
State wherein its work is performed. Its place of business in those States would
be the job sites at which business is carried on. It would not be essential to a
determination of its State of residence that a branch office be maintained in,
or administrative work be performed in, the States where job sites are
located.

Such a company would not need a permit to acquire explosive materials from a
licensee in a State for use at job sites located therein. Form 5400.4,
"Explosives Transaction Record," would show the out-of-State address of the
business entity as theprincipal place of business, and the location of thejob
site as the local place of business.

Nonresident Employees

The purpose of the data requested on Form 5400.4 is to identify the person
authorized by the business entity to make the purchase of explosive materials on
the entity's behalf and to assure the distributor that such person appears on
the required certified list of names of representatives or agents authorized by
the business entity to acquire the materials. Regulations (27 CFR § 55.105(e)),
implementing Title 18, U.S.C. 842(f), in part, provide that each business entity
acquiring explosive materials shall furnish the distributing licensed dealer
with a current, certified list of the names of representatives or agents
authorized to acquire explosive materials on behalf of such business entity. The
purpose of the data requested on Form 5400.8, "Explosives Delivery Record," is
to identify the employee of the business entity or the employee of a carrier
accepting delivery of explosive materials on behalf of the distributes at the
distributor's business premises.

Therefore:

In the case of business entities, the information required on ATF Forms
5400.4 and 5400.8 with respect to employees or agents arranging for the
distribution is not for the purpose of establishing the residence of such
persons but only for identification purposes. [76 CB 104]

(7) 27 CFR 55.126: EXPLOSIVES

TRANSACTION RECORD

Under certain conditions, a single Form 5400.4 may be used to cover a series
of deliveries.

ATF Rul. 76-10

Under the provisions of 27 CFR § 55 .126, a sale or other distribution by a
licensee or permittee shall

not be made to a nonlicensee or nonpermittee unless the transaction is
recorded on a Form5400.4. Under certain conditions, a single Form 5400.4
may be used to cover a series of deliveries.

When an initial sale has been consummated, with partial deliveries to be made
in the immediate future, the requirements of § 55.126 will have been satisfied
if the following steps are taken:

(1) Form 5400.4 shall be executed at the time the sale is initially
made, although delivery of the explosive material is extended over a period of
time not to exceed 30 days.

(2) The executed Form 5400.4 shall subsequently be noted to accurately
reflect the date of each separate delivery and describe each separate lot of
explosive materials delivered.

(3) In lieu of showing the separate deliveries on the Form 5400.4, the
proprietor may attach to the executed form a copy of the delivery record or a
copy of the bill of lading or commercial invoice covering each delivery;
provided that, as to each such delivery, the attachment contains the date of the
delivery and all the information required by Item 21 of Form 5400.4.

(4) All other regulatory requirements and instructions relating to the
completion of the form must be complied with.

[76 CB 1051

(8) 27 CFR 55.207: CONSTRUCTION OF

TYPE 1 STORAGE FACILITIES

(Also § 55.208)

Alternate construction standards for storage facilities for explosive
materials are prescribed.

ATF Rul. 76-18

Section 8420) of 18 U.S.C. states: "It shall be unlawful for
any person to store any explosive material in a manner not in conformity with
regulations promulgated by the Secretary. In promulgating such regulations, the
Secretary shall take into consideration the class, type, and quantity of
explosive materials to be stored, as well as the standards of safety and
security recognized in the explosives industry."

The regulations in 27 CFR §§ 55.207 and 55.208 prescribe types
of storage facilities for explosive materials and provide (among other things)
that such storage facilities shall be bullet-resistant. Section 55.201(b)
provides that alternate storage facilities may be authorized for the storage of
explosive materials when it is shown that such alternate facilities are or will
be constructed in a manner substantially equivalent to the standards of
construction contained in the applicable regulations.

The term "bullet-resistant" means resistant to
penetration of a bullet of 150 grain M2 ball ammunition having a nominal muzzle
velocity of 2700 feet per second fired from a .30 caliber rifle from a distance
of 100 feet perpendicular to the wall or door.

It has been determined that a wide range of construction
criteria meet the bullet-resistant requirements of regulations for construction
of storage facilities for explosive materials.

In order to promote standards of safety and security in the
storage of explosive materials while allowing the industry a wide latitude in
the selection of construction materials, it is held that storage facilities
(magazines) that are constructed according to the following minimum
specifications are bullet-resistant and meet the requirements of the regulations
as set forth in 27 CFR Part 55. (All steel and wood dimensions indicated are
actual thicknesses. To meet the concrete block and brick dimensions indicated,
the manufacturers' represented thicknesses may be used.)

(a) Exterior of 5A inch steel, lined with an interior of
any type of nonsparking material.

(b) Exterior of 112 inch steel, lined with an interior
of not less than 3/8 inch plywood.

(c) Exterior of 3/8 inch steel, lined with an interior
of two inches of hardwood.

(d) Exterior of 3/8 inch steel, lined with an
interior of three inches of softwood or 21/4 inches of plywood.

(e) Exterior of 1/4 inch steel, lined with an interior
of three inches of hardwood.

(f) Exterior of 1/4 inch steel, lined with an interior
of five inches of softwood or 51/4 inches of plywood.

(g) Exterior of 1/4 inch steel, lined with an
intermediate layer of two inches of hardwood and an interior lining of 11/2
inches of plywood.

(h) Exterior Of 3/16 inch steel, lined with an interior
of four inches of hardwood.

(i) Exterior Of 3/16 inch steel, lined with an interior
of seven inches of softwood or 63/4 inches of plywood.

Exterior Of 3/16 inch steel, lined with an intermediate layer
of three inches of hardwood and an interior lining of 3/4 inch of plywood.

(k) Exterior of 1/8 inch steel, lined with an interior
of five inches of hardwood.

(1) Exterior of 1/8 inch steel, lined with an interior
of nine inches of softwood.

(m) Exterior of 'A inch steel, lined with an
intermediate layer of four inches of hardwood and an interior lining of 3/4 inch
plywood.

(n) Exterior of any type of fire-resistant material
which is structurally sound, lined with an intermediate layer of four inches of
solid concrete block, OR four inches of solid brick, OR four inches of solid
concrete; AND, an interior lining of 112 inch plywood placed securely against
the masonry lining.

(o) Standard eight inch concrete block with voids filled
with well-tamped sand/cement mixture.

(p) Standard eight inch solid brick.

(q) Exterior of any type of fire-resistant material
which is structurally sound, lined with an intermediate six inch space filled
with well-tamped dry sand or well-tamped sand/cement mixture.

(r) Exterior of 'A inch steel, lined with a first intermediate layer
of 3/4 inch plywood, a second intermediate layer of 35A inches well-tamped dry
sand or sand/cement mixture and an interior lining of 3/4 inch
plywood.

(s) Exterior of any type of fire-resistant material, lined with a
first intermediate layer of 3/4 inch plywood, a second intermediate layer of
35,k inches well-tamped dry sand or sand/cement mixture, a third intermediate
layer of 3/4 inch plywood, and a fourth intermediate layer of two inches of
hardwood OR 14 gauge steel AND an interior lining of 3/4 inch plywood.

(t) Eight inch thick solid concrete. [76 CB 106)

(9) 27 CFR 55.30: REPORTING THEFT OR

LOSS OF EXPLOSIVE MATERIALS

(Also § 55.165)

Reporting theft or loss of explosive materials.

ATF Rul. 77-13

Section 842(k) of 18 U.S.C. makes it unlawful for any person
who has knowledge of the theft or loss of any explosive materials from his stock
to fail to report such theft or loss within 24 hours of discovery thereof to ATF
and to appropriate local authorities. Regulations at 27 CFR § 55.30,
implementing section 842(k), require that the report of theft or loss be made by
telephone and in writing to ATF.

The legislative history of Title XI of the Organized
Crime Control Act of 1970 (18 U.S.C. Chapter 40) makes clear the
Congress believed that total coverage of a// stolen explosive materials was
necessary for the effective operation of any Federal explosives
regulatory statute-because of the special problems presented by such
stolen explosive materials and the persons possessing them. The statute
and the regulations refer to the reporting of thefts or losses of
explosive materials from the "stock" of a person. With reference to that
requirement, the House Judiciary Committee report makes it clear that this
provision was intended to place an affirmative duty on all
possessors of explosive materials to report a

theft or loss of such explosive materials. Thus, the
reporting requirements were not meant to apply only to thefts or
losses from business inventories.

It is, therefore, held that all persons possessing
explosive materials who suffer a theft or loss of such materials shall report
the theft or loss within 24 hours after the discovery thereof to ATF and to
appropriate local authorities. Such persons required to report include (but are
not limited to) licensees, permittees, carriers who transport or otherwise
possess explosive materials, and users of such materials. Licensees and
permittees must make such report by:

First, calling ATF toll free at 800-424-9555;

Second, calling the local law enforcement
office; and

Third, completing and forwarding ATF Form 5400.5 in
accordance with instructions on the form.

All other persons subject to the reporting requirement must
report by telephone and in writing, by letter, to the nearest ATF Office. [77 CB
1901

(10) 27 CFR 55.213: QUANTITY AND

STORAGE RESTRICTIONS

(Also § 55.208)

Alternate magazine construction standards for storage of electric blasting
caps with other explosive materials are prescribed.

ATF Rul. 77-24

Section 8420) of 18 U.S.C. states: "It shall be unlawful for
any person to store any explosive material in a manner not in conformity with
regulations promulgated by the Secretary. In promulgating such regulations, the
Secretary shall take into consideration the class, type, and quantity of
explosive materials to be stored, as well as the standards of safety and
security recognized in the explosives industry."

The regulations in 27 CFR § 55.213 restrict the storage of
blasting caps with other explosive materials. Section 55.201 (b) provides that
alternate storage magazines may be authorized for the storage of explosive
materials when it is shown that such alternate magazines are or will be
constructed in a manner substantially equivalent to the standards of
construction contained in the applicable regulations.

ATF recognizes that the transportation and storage of explosive
materials in the same vehicle along with electric blasting caps is often
desired. The Institute of Makers of Explosives established a recommended
standard for such transport in their Safety Library Publication No. 22,
dated November 5, 1971 [revised January 19851. This standard prescribes the
minimum construction criteria for:

(a) A container securely attached-

(1) Above the cab of the vehicle (see Figure 1, Appendix A), and

(2) Tothevehicieframeunderthecargospace (see Figure 2, Appendix A),
or

(b) A built-in compartment in the cargo space of the
vehicle (see Appendix B).

In addition to motorized vehicles, consideration was also given
for the use of similar criteria on portable wheeled trailers being used as
magazines under § 55 .208(a) of the regulations (see Appendix E).

In order to insure standards of safety and security in the
storage of explosive materials while allowing the industry a proper latitude in
the construction of magazines, it is held that vehicles used for
transporting and for storing explosive materials that are constructed in
conformity with the standards listed below, and in compliance with all other
safety and security provisions contained in Part 55 (e.g., effectively
immobilized when unattended) will meet the requirements of ATF regulations.

Even though constructed on the same vehicle, each compartment
will be considered as a separate magazine. The two magazines on the vehicle
will, however, be considered as one magazine when applying the American Table of
Distances [see Table at § 55.218].

Construction Standards For Storage of Electric Blasting Caps(Non
Mass-Detonating)

a. The container or compartment must provide for total
enclosure of the electric blasting caps.

b. The partition between the explosives storage
compartment and the electric blasting cap compartment must be of laminate
construction consisting of A/C grade or better exterior plywood, gypsum board
[sheetrock] and low carbon steel plates. In order of arrangement, the laminate
must conform to the following, with minimum thickness of each lamination as
indicated:

'A inch plywood,

112 inch gypsum board [sheetrock],

1/6 inch low carbon steel, and,

1/4 inch plywood,

With the 1/4 inch plywood facing the explosives storage
compartment. See Appendix C for details of laminate construction. The door to
the electric blasting cap compartment must be of metal construction or solid
wood covered with metal; the outside walls and top must be of the same
construction as the rest of the vehicle or trailer. If high explosives, or
bullet sensitive explosive materials are stored in the vehicle, then the storage
compartment of the vehicle must be constructed so as to be bullet-resistant.

c. As an alternative to the construction requirements
shown in paragraph b, a container for use only as illustrated in Appendix A may
be used when constructed as follows:

1.The top, lid or door, and the sides and bottom

of each container must be of laminate construction consisting
of A/C grade or better exterior plywood, solid hardwood, gypsum board
[sheetrock], and sheet metal. In order of arrangement, the laminate must conform
to the following, with minimum thickness of each lamination as indicated: 1/4
inch plywood,

1 inch solid hardwood, 'A inch plywood,

'//2 inch gypsum board [sheetrock] (OR 1/4 inch particle
board), and 22 gauge sheet metal,

Constructed inside to outside in that order. See Appendix D for
detail of laminate construction.

2. The hardwood must be fastened together with wood
screws, the 1/2 inch plywood must be fastened to the hardwood with wood screws,
the inner 1/4 inch plywood must be fastened to the hardwood with adhesive, and
the 22 gauge sheet metal must be attached to the exterior of the container with
screws.

d. The laminate composite material must be securely
bound together by waterproof adhesive or other equally effective means.

e. The steel plates at the joints of laminations must be
secured by continuous fillet welds.

f. All interior surfaces of the container or compartment
must be constructed so as to prevent contact of contents with any sparking
metal.

g. There must be direct access to the container or into
a compartment from outside the vehicle.

h. Each container or compartment must have a snug
fifting continuous piano-type hinged lid or door equipped with a locking device
(or devices).

i. Without permitting direct access to contents under
normal conditions, the locking or hinging mechanisms must permit at least one
edge of the lid or door to rise or move outward at least 1/2 inch when subjected
to internal pressure.

J. j. The exterior of the container or compartment must
be weather-resistant.

[77 CB 1911]

GENERAL
INFORMATION

EFFECT OF TITLE Xi ON THE

FIREWORKS INDUSTRY

[CAUTION! This Item Discusses the Federal "Point of
View," Only! Please Contact Your StatelLocal Authority Fbr Any
Additional Requirements!]

Title Xi of the Organized Crime Control Act of 1970 (18 U.S.C.
Chapter 40) establishes controls over explosive materials, including black
powder and other pyrotechnic compositions commonly used in fireworks. Part 55 of
Title 27, Code of Federal Regulations (CFR), contains the regulations which
implement Title XI.

Section 55.141(a)(7) exempts "the importation and distribution
of fireworks classified as Class C explosives and generally known as 'common
fireworks,' and other Class C explosives, as described by U.S. Department of
Transportation regulations in 49 CFR 173 .100(p),(r),(t),(u), and (x)."

Section 55.141(a)(7) does not exempt "special fireworks" (often
referred to as "display fireworks") which are classified by the Department of
Transportation as Class "B" explosives. The exemption applies only to "common
fireworks" in a finished state classified by the Department of Transportation as
Class "C" explosives (49 CFR § 173.100).

With Respect to
Fireworks ...

Who Needs a License?

1. Manufacturers of black powder;

2. Manufacturers of any other explosive material

used in manufacturing "special fireworks" (Class "B" explosives) or "common
fireworks" (Class "C" explosives); and

3. Importers of, or dealers in, "special fireworks."

With Respect to Fireworks .

Who Needs a Permit?

1. A person acquiring or transporting "special fireworks"
interstate for his own use and not for resale. [Agencies of the United States or
of any State or political subdivisions thereof are exempt from permit
requirements.]; and

2. A person, other than a licensee, acquiring or transporting
explosive materials interstate for use in manufacturing "special fireworks" or
"common fireworks."

With Respect to
Fireworks ...

Who May Not Need a License

or Permit?

Frequently, persons contracting for display fireworks (such as
would be appropriate for Fourth of July observances) from an out-of-State dealer
receive a total service, including the services of a
pyrotechnician who transports display fireworks in interstate commerce to the
site of the display and conducts or supervises the display. In these instances,
the customers purchase the dealer's services rather than the explosive materials
themselves, and the cost of the services includes the dealer's expense in
providing the fireworks utilized.

When business is transacted in this manner, the customers
purchasing and receiving the services need not obtain Federal licenses or
permits since they are not actually acquiring explosive materials outside their
States of residence, and they are not receiving such materials or causing them
to be transported in interstate commerce.

If the dealer furnishing the services is a licensee, his
interstate transportation of explosive materials to the display sites would be
conduct authorized by his license.

With Respect to
Fireworks ...

Types of Permits

1. User permit: Allows a permittee to acquire, transport, ship
and receive "special fireworks" in interstate or foreign commerce for his own
use and not for resale. This permit is issued at a cost of $20 for a one-year
period and is renewable at a cost of $10 for a three-year period.

2. User-limited permit: Identical to the user permit but issued for a
single transaction, only. The fee is $2; the permit is nonrenewable. A new
permit must be obtained for each transaction. This type of permit is
advantageous to civic and veterans organizations who wish to conduct a single
display such as on the Fourth of July.

With Respect to
Fireworks ...

Storage

The law prohibits any person from storing any explosive materials in a manner
not in conformity with the regulations promulgated by the Secretary of
theTreasury (1 8 U.S.C. 842(J)). Pursuant to this section, the Secretary has
prescribed storage regulations in 27 CFR Part 55, Subpart K. Since display
fireworks are not exempt from regulations, they must be stored in conformity
with the regulations.

Display fireworks generally contain Perchlorate mixture explosives, potassium
chlorate base explosive mixtures, and black powder, which are entered on the
List of Explosive Materials with numerous others. (The List is
annually compiled and readily available without charge from the address set out
in § 55.23.)

Display fireworks should be stored as low explosives in facilities meeting
the requirements for type 4 storage facilities, prescribed by 27 CFR § 55.210
unless they contain other classes of explosives.

The manufacturer of exempt or nonexempt fireworks having stocks of explosive
materials on hand to be used in the manufacture of fireworks must store his
stocks in conformity with applicable storage requirements. In storage facilities
where weight restrictions apply, the net weight of the explosive materials may
be used. To determine the actual weight of the explosive materials, it may be
necessary to contact their manufacturers.

EXPLOSIVES DEALER'S AND

USER'S BASIC GUIDE TO

FEDERAL EXPLOSIVES

REGULATION

EXPLOSIVES MAY NOT BE DISTRIBUTED BY LICENSEES TO ANY PERSON WHO:

× Is under 21 years of
age.

× Has been convicted of a crime
punishable by imprisonment for a term exceeding one year.

× Is under indictment for a
crime punishable by imprisonment for a term exceeding one year.

× Is an unlawful user of, or
addicted to, marijuana or any depressant or stimulant drug or narcotic drug (as
these terms are defined in the Controlled Substances Act; 21 U.S.C.
802).

× Has been adjudicated as a
mental defective or has been committed to a mental institution.

× Is a fugitive from
justice.

× May not lawfully purchase,
possess or use explosives under State or local laws applicable at the place of
distribution.

DEALERS IN EXPLOSIVES MUST-

× Have a Federal
license.

× Have proper
storage facilities.

× Keep accurate
and complete records.

× Verify that each
out-of-State buyer has a Federal permit.

× Have
nonlicensees/nonpermittees execute FDrms @.4, "Explosives Transaction
Record."

× Have employees
of buyers or carriers to whom delivery is made at a distributor's premises
execute Forms 5400.8, "Explosives Delivery Record. "

× Verify buyers'
identities.

USERS OF EXPLOSIVES-PERMITTEES AND NONPERMITTEES:

× Federal permits
are required of those who purchase explosives from outside their State of
residence and/or transport them interstate. The permittee must keep complete and
accurate records of his acquisitions and dispositions of explosives.

× Nonpermittees
may buy and use explosives in their State of residence without obtaining a
Federal permit. They must give proper identification to the dealer and execute
Form 5400.4, "Explosives Transaction Record."

NO PERSON SHALL STORE ANY EXPLOSIVE IN A MANNER NOT IN CONFORMITY WITH
REGULATIONS

ALL PERSONS WILL PROMPTLY REPORT TO ATF AND LOCAL AUTHORITIES ANY LOSS OR
THEFT OF THEIR EXPLOSIVES

A FEDERAL LICENSE OR PERMIT DOES NOT CONFER ANY RIGHT OR
PRIVILEGE TO VIO LATE ANY STATE LAW OR LOCAL ORDINANCE

The above summary is general and does not purport to convey
fully the Federal explosives law and regulations pertaining to dealers and
users.

BLACK POWDER TRANSACTIONS

Public Law 93-639 (1975) allows nonlicensees/ nonpermittees to
purchase commercially manufactured black powder, in quantities of 50 pounds or
less, solely for sporting, recreational or cultural purposes for use in antique
firearms or antique devices outside of Federal controls.

A nonlicensee or nonpermittee purchasing black powder under the
exemption need not be a resident of the State in which the dealer is located.
Also, the categories of persons to whom the distribution of explosive materials
is prohibited do not apply to black powder transactions made under the
exemption.

Acquisitions of black powder not qualifying under this
exemption are subject to the same regulatory requirements that govern any other
low explosive.

All persons who sell black powder, regardless of quantity, must
be licensed as explosives dealers and must provide adequate storage.

EXPLOSIVES SECURITY

Through prompt reporting of losses and thefts of explosives and
increased emphasis on physical security, explosives licensees and permittees can
contribute greatly to efforts by Federal, State and local authorities to reduce
the incidence of bombings in the United States.

The following actions are of prime importance:

REPORT ... thefts or losses of explosives from
magazines, premises and job sites promptly, by telephone, to ATF (toll
free: 800-424-9555) and to appropriate local and/or State authorities.
Because the States and many municipalities have designated specific agencies to
investigate the theft or loss of explosives, licensees and permittees are urged
to be familiar with State and local reporting procedures and appropriate contact
points.

FOLLOW ... telephone notification with a written
report on ATF Form 5400.5, Report of Theft or Loss-Explosive
Materials, to the nearest ATF District Office.

OBSERVE ... activity around magazines, within

business premises, and on job sites, particularly if strangers
appear to be loitering in the area in which explosives are being kept. On-site
users should take special care to assure that explosives removed from storage
for use on the job are either detonated or ac-

counted for and returned to storage.

REVIEW ... recordkeeping practices to assure that
no discrepancies exist and that no figures in reported inventories have been
manipulated, and correct any clerical errors promptly. Should any questions
arise concerning explosives security procedures or any aspect of explosives
regulation coming under the jurisdiction of ATF, do not hesitate to contact the
Bureau.

ADDITIONAL INFORMATION

The flow of useful information is an essential ingredient in the effective
administration of regulatory programs. The Treasury Department's Bureau of
Alcohol, Tobacco and Firearms is the Federal agency charged with the
responsibility of administering laws impacting four different industries. Two
publications warrant mention:

A. The Alcohol, Tobacco and Firearms

Quarterly Bulletin

The Alcohol, Tobacco, and Firearms Quarterly
Bulletin is the authoritative instrument of the Bureau for announcing
official rulings and procedures, and for publishing Treasury decisions,
legislation, administrative matters, and other items of general interest. It
incorporates, into one publication, mafters of the Bureau which are of public
record.

This publication may be purchased from the Superintendent of
Documents, U.S. Government Printing Office, Washington, DC 20402.

The ATF Bulletin currently costs [in 19901 $13.00
(domestic) and $16.25 (foreign) for a one-year subscription. A single copy is
$3.75 (domestic) and $4.69 (foreign). Checks should be made payable to the
Superintendent of Documents.

ADVANTAGES: The official ATF publication;
Continuously compiled, printed and sold since 1973. Fees charged and broad
coverage ensures continued flow of information.

B. The Explosives Industry Newsletter

During 1989 ATF developed the Explosives Industry
Newsletter, an information service for Federal explosives licensees
and permittees which is intended to help explosives industry members better
understand the Federal laws under which they must operate. It also includes
other items of particular interest to the explosives industry. There is no
charge for the Explosives Newsletter; licensees and
permittees automatically receive copies when new editions are published.

Explosives industry members wishing to express ideas or obtain
answers to questions concerning any of the topics covered may address
suggestions and inquiries to:

Bureau of Alcohol, Tobacco and Firearms

ATTN: Editor, Explosives Newsletter

P.O. Box 189

Washington, DC 20044-0189

ADVANTAGES: Explosives Industry-specific, providing useful
explanation of law, regulations, situations; Includes data consisting of charts
and graphics.