THE ORANGE BOOK ATF: Explosives Law and Regulations

BUREAU OF ALCOHOL, TOBACCO, AND FIREARMS * DEPARTMENT OF THE TREASURY - ATF P 5400.7(11/82)

• Chapter 40 - Importation, Manufacture, Distribution and Storage of Explosive Materials (18 U.S.C.)
• Subject Index to Commerce in Explosives (Part 55)
  • Subpart A - Introduction
  • Subpart B - Definitions
  • Subpart C - Administrative and Miscellaneous Provisions
  • Subpart D - Licenses and Permits
  • Subpart E - Licenses and Permit Proceedings
  • Subpart F - Conduct of Business or Operations
  • Subpart G - Records and Reports
  • Subpart H - Exemptions
  • Subpart I - Unlawful Acts, Penalties, Seizures, and Forfeitures
  • Subpart J - Marking of Plastic Explosives
  • Subpart K - Storage
    • § 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).
• Federal Explosives Storage Requirements
  • Types of Storage
  • Common Housekeeping /ConstructionRequirements
  • Type 1
  • Type 2
  • Type 3
  • Type 4
  • Type 5
• Questions and Answers
• ATF Explosives Rulings and Procedures
• EXPLOSIVES LICENSE AND PERMIT NUMBERING SYSTEM
• BASIC EXPLOSIVES DEALER'S AND USER'S
  GUIDE TO FEDERAL EXPLOSIVES REGULATION

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

GENERAL INFORMATION

EFFECT OF TITLE XI ON THE FIREWORKS INDUSTRY

[CAUTION! This Item Discusses the Federal "Point of View," Only! Please Contact Your State l Local Authority For 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. § 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)."

§ 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 the Treasury (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 LICENSE AND PERMIT NUMBERING SYSTEM

The Basic Number of your Federal explosives license or permit consists of digits 2 and 3, and 11 through 15.

This basic number may be useful for letterheads, business cards, invoices, records, etc. (unless you are a manufacturer-limited licensee, or a userlimited permittee, as these licenses/permits are nonrenewable).

DIGIT STANDS FOR
1 Alcohol, Tobacco and Firearms Region
2,3 State-Alpha Designation
4,5,6 County of the State
7,8 Type of license or permit
9,10 Expiration date code
11-15 Sequence number of license or permit

EXAMPLE:

5 TX 057 29 2E 00002

5 = Southwest Region
TX = Texas
057 = Dallas County
29 = Dealer in Black Powder
2E = May 1992 Expiration Date
00002 = Sequence Number

BASIC EXPLOSIVES DEALER'S AND USER'S
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 Forms 5400.4, "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.