[Code of Federal Regulations]
[Title 27, Volume 1, Parts 1 to 199]
[Revised as of April 1, 1999]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR55]

[Page 730-776]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, DEPARTMENT OF THE 
                                TREASURY
 
PART 55--COMMERCE IN EXPLOSIVES

                         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 or 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, receipt, possession, or 
          distribution of explosive materials.

[[Page 731]]

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.
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 permittees.
55.126  Explosives transaction record.
55.127  Daily summary of magazine transactions.
55.128  Discontinuance of business.
55.129  Exportation.
55.130  [Reserved]

                          Subpart H--Exemptions

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

     Subpart I--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 J--Marking of Plastic Explosives

55.180  Prohibitions relating to unmarked plastic explosives.
55.181  Reporting of plastic explosives.
55.182  Exceptions.
55.183  Importations of plastic explosives on or after April 24, 1997.
55.184  Statements of process and samples.
55.185  Criminal sanctions.
55.186  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.

[[Page 732]]

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 display fireworks, pyrotechnic compositions, 
          and explosive materials used in assembling fireworks or 
          articles pyrotechnic.
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 display fireworks (except 
          bulk salutes).

    Authority: 18 U.S.C. 847.

    Source: T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, unless otherwise 
noted.

                         Subpart A--Introduction

Sec. 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), Public Law 103-322 (108 Stat. 1796), and Public 
Law 104-132 (110 Stat. 1214).
    (b) Procedural and substantive requirements. This part contains the 
procedural and substantive requirements relative to:
    (1) The interstate or 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;
    (8) Exemptions, unlawful acts, penalties, seizures, and forfeitures; 
and
    (9) The marking of plastic explosives.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-363, 60 
FR 17449, Apr. 6, 1995; T.D. ATF-387, 62 FR 8376, Feb. 25, 1997]

Sec. 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

Sec. 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,

[[Page 733]]

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.
    Articles pyrotechnic. Pyrotechnic devices for professional use 
similar to consumer fireworks in chemical composition and construction 
but not intended for consumer use. Such articles meeting the weight 
limits for consumer fireworks but not labeled as such and classified by 
U.S. Department of Transportation regulations in 49 CFR 172.101 as 
UN0431 or UN0432.
    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.
    Authority having jurisdiction for fire safety. The fire department 
having jurisdiction over sites where explosives are manufactured or 
stored.
    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 to 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 display 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 \1/2\ 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 AFT official 
responsible for the issuance and renewal of licenses and permits under 
this part.
    Consumer 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. Consumer 
fireworks are classified as fireworks UN0336, and

[[Page 734]]

UN0337 by the U.S. Department of Transportation at 49 CFR 172.101. This 
term does not include fused setpieces containing components which 
together exceed 50 mg of salute powder.
    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.
    Display 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 
``consumer fireworks.'' Display fireworks are classified as fireworks 
UN0333, UN0334 or UN0335 by the U.S. Department of Transportation at 49 
CFR 172.101. This term also includes fused setpieces containing 
components which together exceed 50 mg of salute powder.
    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 Sec. 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 ``consumer fireworks'' or ``display 
fireworks'' as defined by this section.

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

[[Page 735]]

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 explosive 
materials nor pyrotechnic compositions used to manufacture or 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 display 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 which includes but is not 
limited to oxidizers such as potassium chlorate or potassium 
perchlorate, and fuels such as sulfur or aluminum powder.
    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, public alley, or public road, including 
a privately financed, constructed, or maintained road that is regularly 
and openly traveled by the general public.
    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.
    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.
    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.

[[Page 736]]

    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 display 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 \1/2\ 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. Fir, pine, or other soft wood, free from loose knots, 
spaces, or similar defects.
    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.
    Theatrical flash powder. Flash powder commercially manufactured in 
premeasured kits not exceeding 1 ounce and mixed immediately prior to 
use and intended for use in theatrical shows, stage plays, band 
concerts, magic acts, thrill shows, and clown acts in circuses.
    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)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-92, 46 
FR 46916, Sept. 23, 1981; T.D. ATF-200, 50 FR 10497, Mar. 15, 1985; T.D. 
ATF-290, 54 FR 53053, Dec. 27, 1989; T.D. ATF-293, 55 FR 3720, Feb. 5, 
1990; T.D. ATF-314, 56 FR 49140, Sept. 27, 1991; T.D. ATF-382, 61 FR 
38084, July 23, 1996; T.D. ATF-400, 63 FR 45001, Aug. 24, 1998]

         Subpart C--Administrative and Miscellaneous Provisions

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

[T.D. ATF-92, 46 FR 46916, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996]

Sec. 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

[[Page 737]]

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 licensee or permittee 
shall retain, as part of his records available for examination by ATF 
officers, any application approved by the Director under this section.

Sec. 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'' (AFT Publication 5400.8) 
is available at no cost upon request from the ATF Distribution Center, 
7943 Angus Court, Springfield, Virginia 22153.

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

[[Page 738]]

Sec. 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.

Sec. 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 politicial 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.

Sec. 55.26  Prohibited shipment, transportation, receipt, possession, or 
          distribution of explosive materials.

    (a) No person, other than a licensee or permittee, 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 Sec. 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)(16), 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 or possess 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 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) Has been adjudicated as a mental defective or has been committed 
to a mental institution.
    (c) No person shall knowingly distribute explosive materials to any 
individual who:
    (1) Is under twenty-one years of age,
    (2) 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,
    (3) Is a fugitive from justice,
    (4) 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), or
    (5) Has been adjudicated as a mental defective or has been committed 
to a mental institution.
    (d) See Sec. 55.180 for regulations concerning the prohibited 
manufacture, importation, exportation, shipment, transportation, 
receipt, transfer, or possession of plastic explosives that do not 
contain a detection agent.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3721, Feb. 5, 1990; T.D. ATF-363, 60 FR 17449, Apr. 6, 1995; T.D. 
ATF-387, 62 FR 8376, Feb. 25, 1997]


[[Page 739]]



Sec. 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.

Sec. 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.

Sec. 55.29  Unlawful storage.

    No person shall store any explosive materials in a manner not in 
conformity with this part.

Sec. 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 1-800-800-3855 
(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 1-800-800-3855 (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.) and 
United Nations (UN) identification number, hazard division number, and 
classification letter, e.g., 1.1D, as classified by the U.S. Department 
of Transportation at 49 CFR 172.101 and 173.52.
    (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 1-800-800-3855 (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 (United Nations (UN) identification number, hazard 
division number, and classification letter, e.g., 1.1D) as classified by 
the U.S. Department of Transportation at 49 CFR 172.101 and 173.52.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45002, Aug. 24, 1998]

Sec. 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.

Sec. 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

[[Page 740]]

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

Sec. 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 Sec. 55.42), with ATF in accordance with the 
instructions on the form (see Sec. 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. 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 a location 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.
    (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.
    (4) A separate license shall not be required of licensed 
manufacturers with respect to their on-site manufacture of theatrical 
flash powder.
    (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 
Sec. 55.43), with ATF in accordance with the instructions on the form 
(see Sec. 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))

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-200, 50 
FR 10497, Mar. 15, 1985; T.D. ATF-314, 56 FR 49140, Sept. 27, 1991; T.D. 
ATF-400, 63 FR 45002, Aug. 24, 1998]

Sec. 55.42  License fees.

    (a) Each applicant shall pay a fee for obtaining a three year 
license, a separate fee being required for each business premises, as 
follows:
    (1) Manufacturer--$200.
    (2) Importer--$200.
    (3) Dealer--$200.

[[Page 741]]

    (b) Each applicant for a renewal of a license shall pay a fee for a 
three year license as follows:
    (1) Manufacturer--$100.
    (2) Importer--$100.
    (3) Dealer--$100.

[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998]

Sec. 55.43  Permit fees.

    (a) Each applicant shall pay a fee for obtaining a permit as 
follows:
    (1) User--$100 for a three year permit.
    (2) User-limited (nonrenewable)--$75.
    (b) Each applicant for renewal of a user permit shall pay a fee of 
$50 for a three year permit.

[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998]

Sec. 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.

Sec. 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 License, Explosives, 
ATF F 5400.13 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 may be obtained from any ATF office.
    (b) Any person, except as provided in Sec. 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 
Permit, Explosives, ATF F 5400.16 or Permit, User Limited Special 
Fireworks, ATF F 5400.21 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 5400.16 and ATF F 5400.21 may be obtained from any ATF office.

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

[T.D. T.D. ATF-200, 50 FR 10497, Mar. 15, 1985, as amended by T.D. ATF-
400, 63 FR 45002, Aug. 24, 1998]

Sec. 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, ATF F 5400.14 (Part III), or 
an application for permit renewal, ATF F 5400.15 (Part III), 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 Sec. 55.45, and obtain the required license or permit in order to 
continue business or operations.
    (b) A user-limited permit is not renewable and is valid for a single 
purchase transaction. Applications for all user-limited permits must be 
filed on

[[Page 742]]

ATF F 5400.16 or ATF F 5400.21, as required by Sec. 55.45.

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

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-200, 50 
FR 10497, Mar. 15, 1985; T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; T.D. 
ATF-400, 63 FR 45002, Aug. 24, 1998]

Sec. 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))


[T.D. ATF-200, 50 FR 10498, Mar. 15, 1985]

Sec. 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.

Sec. 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 
license or 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 and one copy will be 
forwarded to the applicant, except that in the case of a user-limited 
permit, the original only shall be issued. Each license or permit will 
bear a serial number and 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 
Sec. 55.202) of explosive materials described on the application, unless 
he establishes to the satisfaction of the Chief, Firearms and Explosives 
Licensing Center 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 Sec. 55.83 or Sec. 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

[[Page 743]]

final action by the Director on an application for relief submitted 
under Sec. 55.142, as the case may be.

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


[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-200, 50 
FR 10498, Mar. 15, 1985; T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; T.D. 
ATF-387, 62 FR 8376, Feb. 25, 1997]

Sec. 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.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 55.51  Duration of license or permit.

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

[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998]

Sec. 55.52  Limitations on license or permit.

    (a) The license covers the business and class (as described in 
Sec. 55.202) of explosive materials specified in the license at the 
licensee's business premises (see Sec. 55.41(b)).
    (b) The permit is valid with respect to the type of operations and 
class (as described in Sec. 55.202) of explosive materials specified in 
the permit.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8376, Feb. 25, 1997]

Sec. 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 Sec. 55.59.

Sec. 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--

[[Page 744]]

    (a) Give notification of the new location of the business or 
operations to the Chief, Firearms and Explosives Licensing Center at 
least 10 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).

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 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 Sec. 55.202) shall file an application on ATF F 
5400.13 or on ATF F 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.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989; T.D. ATF-387, 62 FR 8376, Feb. 25, 1997]

Sec. 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.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 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 or an ATF F 5400.16 as required by 
Sec. 55.45, and pay the fee prescribed in Sec. 55.42(b) or 
Sec. 55.43(b).

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 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 Sec. 55.45. The rule set forth 
in this section will also apply where there is more than one surviving 
partner.

[[Page 745]]

Sec. 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.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 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.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 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 Sec. 55.128.)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 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.

Sec. 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 requirements 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 paragraphs (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.

[[Page 746]]

    (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) Magazines acquired or constructed after permit or license is 
issued. 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.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45002, Aug. 24, 1998]

                Subpart E--License and Permit Proceedings

Sec. 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 
permittee 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, AFT 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 Sec. 55.74.

Sec. 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 Sec. 55.49, he shall 
issue a notice of denial on ATF F 5400.11. 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.

Sec. 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 Sec. 55.77) 
for a hearing and shall serve notice of the hearing upon the applicant 
and the regional director (compliance) at least 10 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 
Sec. 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

[[Page 747]]

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.

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

    If following the opportunity for compliance under Sec. 55.71, or 
without opportunity for compliance under Sec. 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 5400.10, 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.

Sec. 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 Sec. 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.

Sec. 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,

[[Page 748]]

conclusions and recommended decision of the administrative law judge, 
the regional director (compliance) shall cause the license or permit to 
be issued or disapproved 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 Sec. 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 Sec. 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 Sec. 55.81.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]

Sec. 55.77  Designated place of hearing.

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

Sec. 55.78  Representation at a hearing.

    An applicant, licensee, or permittee may be represented by an 
attorney, certified public accountant, or other

[[Page 749]]

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 of 26 CFR 601.521 through 601.527. The 
regional director (compliance) shall be represented in proceedings under 
Secs. 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''.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-92, 46 
FR 46916, Sept. 23, 1981]

Sec. 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 Sec. 55.73 or Sec. 55.75. An 
appeal may also be taken by a regional director (compliance) from a 
decision resulting from a hearing under Sec. 55.75 as provided in 
Sec. 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.

Sec. 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.

Sec. 55.81  Service on applicant, licensee, or permittee.