Subpart F-Conduct of Business or Operations
Sec
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.
§ 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 nonpermittees in accordance with § 55.105(d).
§ 55.103 Transactions among licensees/permittees.
(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 transport 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 only 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 of 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 (a) 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 delivery 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).)
(g) A licensee or permittee disposing of surplus stock may sell or distribute commercially manufactured 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 TD.
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.
(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.