98-21867. Commerce in Explosives (95R-036P)  

  • [Federal Register Volume 63, Number 163 (Monday, August 24, 1998)]
    [Rules and Regulations]
    [Pages 44999-45004]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-21867]
    
    
    
    [[Page 44999]]
    
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    DEPARTMENT OF THE TREASURY
    
    Bureau of Alcohol, Tobacco and Firearms
    
    27 CFR Part 55
    
    [T.D. ATF-400; Ref: Notice No. 841]
    RIN 1512-AB55
    
    
    Commerce in Explosives (95R-036P)
    
    AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of 
    the Treasury.
    
    ACTION: Final rule, Treasury decision.
    
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    SUMMARY: This final rule amends regulations to clarify the meanings of 
    terms, increase license and permit fees, eliminate duplication in 
    licensing, relax the licensing requirements for on-site manufacturers, 
    implement a storage notification requirement for manufacturers and 
    other storers of explosives, update the theft/loss hotline number for 
    reporting thefts or losses of explosives, and make minor modifications 
    to regulations on storage.
    
    DATES: This final rule is effective December 22, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Mark D. Waller, ATF Specialist, Arson 
    and Explosives Programs Division, 650 Massachusetts Avenue, NW., 
    Washington, DC 20226, (202) 927-8310.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        The Bureau of Alcohol, Tobacco and Firearms (ARF) is concerned with 
    the safety of emergency personnel responding to fires on sites where 
    explosives are stored. ATF is amending the regulations in 27 CFR Part 
    55 to require any person who stores explosive materials to notify local 
    fire departments of the locations where explosives are stored. The 
    regulations are also being amended to clarify the meaning of terms; 
    modify the American Table of Distances to conform with the Institute of 
    Makers of Explosives (IME) latest revisions; update and incorporate 
    references and definitions to reflect current government and industry 
    standards; facilitate transition to the United Nations explosives 
    classification codes; allow on-site manufacturers to operate under one 
    manufacturer's license; and extend the term for original and renewal 
    licenses and permits from one year to three years.
    
    Notice of Proposed Rulemaking
    
        On October 15, 1996, ATF published in the Federal Register a notice 
    of proposed rulemaking (Notice No. 841, 61 FR 53688), with a 90-day 
    comment period. The comment period closed on January 13, 1997. This 
    notice proposed the following amendments to the regulations:
        (1) Require anyone storing explosive materials to notify local law 
    enforcement officials and fire departments of the type, magazine 
    capacity, and location of each site where explosive materials are 
    stored.
        (2) Increase the license and permit fees to $200 and $100 and 
    renewals to $100 and $50, respectively.
        (3) Eliminate the manufacturer-limited license.
        (4) Amend the definitions of ``fireworks,'' ``highway,'' and 
    ``salute,'' and change the names of ``common fireworks'' to ``consumer 
    fireworks'' and ``special fireworks'' to ``display fireworks'' and 
    amend their definitions.
        (5) Amend the definition of ``fireworks nonprocess building'' to 
    eliminate the unnecessary reference to fireworks plant warehouse.
        (6) Substantially adopt the American Table of Distances as revised 
    by the Institute of Makers of Explosives.
        (7) Update the ATF hotline for reporting thefts or losses of 
    explosive materials.
        ATF received 426 written comments in response to Notice No. 841. 
    Comments were submitted by several major model rocketry industry groups 
    such as the National Association of Rocketry (NAR) and Tripoli Rocketry 
    Association (Tripoli), and their members. Comments were also submitted 
    by fireworks hobbyists, small display fireworks operators, major 
    explosives industry safety associations and professional organizations 
    such as the Institute of Makers of Explosives (IME), the American 
    Pyrotechnic Association (APA), the National Fire Protection Association 
    (NFPA), and the International Association of Fire Fighters (IAFF). 
    Comments were also received from concerned citizens.
    
    Discussion of Comments--Final Rule
    
    Subpart B--Definitions
    
        ATF received three comments relating to proposals to amend the 
    definitions in 27 CFR 55.11. Notice No. 841 proposed defining the term 
    ``highway'' as ``any public street, public alley, or public road.'' 
    With regard to the definition of ``highway,'' a number of commenters 
    emphasized the importance of defining highway as any public road, 
    public street, or public alley, and stressed that such roads should not 
    include private roads on mine property, manufacturing sites, or 
    construction projects. The commenters stated that the tables of 
    distances set forth in the regulations are intended to apply only to 
    roads financed, constructed, or maintained by government entities. 
    Other comments also strongly urged ATF to clarify that the definition 
    of ``highway'' includes a public funding element, so as to avoid posing 
    undue burden on the explosives industry in placing magazines at minimum 
    separation distances from private roads.
        In the interest of ATF's statutory obligation to consider public 
    safety, if a privately financed, constructed, or maintained road is 
    regularly and openly traveled by the general public, ATF may determine 
    that the road is ``public'' so that it is subject to the table of 
    distance requirements. This interpretation allows ATF to maintain the 
    flexibility to determine on a case-by-case basis whether a private road 
    is used by the general public in a manner that warrants protection by 
    the table of distance requirements. Accordingly, ATF is revising the 
    definition of ``highway'' proposed in Notice No. 841 to include this 
    interpretation.
        ATF received two comments in response to proposals to amend various 
    fireworks definitions. One commenter recommends that ATF eliminate 
    confusion as to which table of distances, if any, applies to fireworks 
    plant warehouses and fireworks and nonprocess buildings. The commenter 
    recommends that the definition of fireworks plant warehouse be amended 
    to state that no work of any kind shall be performed in the warehouse 
    except for the placement in or removal of fireworks items from storage. 
    The commenter also recommends that the definition of ``fireworks 
    nonprocess building'' be amended to eliminate ``fireworks plant 
    warehouse'' from its definition. Such warehouse would, therefore, not 
    be subject to the separation distances in sections 55.222 and 55.223. 
    The final rule adopts both these comments.
        The commenter also urges ATF to consider incorporating NFPA 1124, 
    Code for the Manufacture, Transportation, and Storage of Fireworks into 
    27 CFR Part 55, by reference. Further, the NFPA, which represents over 
    65,000 individuals and 115 national organizations including individuals 
    from fire departments, health care facilities, and Federal, State, and 
    local governments, makes the same suggestion. The NFPA recommends that 
    ATF adopt a variety of its codes and standards by reference where 
    applicable, such as NFPA 495, Explosives Materials Code, NFPA 498, Safe 
    Havens and Interchange Lots, NFPA 1123, Code for Fireworks Display, 
    NFPA 1125, Code for the Manufacture
    
    [[Page 45000]]
    
    of Model and High Power Rocket Motors, NFPA 1126, Standard for the Use 
    of Pyrotechnics before a Proximate Audience, and NFPA 1127, Code for 
    High Power Rocketry.
        Since the standards set forth in these industry codes were not part 
    of the proposals set forth in Notice No. 841, ATF is not adopting this 
    comment at this time. However, ATF will consider including these 
    standards in a separate notice of proposed rulemaking to be published 
    at a future date.
        AFT received one comment on its proposals to amend the definitions 
    of ``common'' and ``special'' fireworks by using specific United 
    Nations Organization (UN) identification numbers. The commenter feels 
    that the incorporation of UN numbers in conjunction with references to 
    U.S. Consumer Product Safety Commission (CPSC) and U.S. Department of 
    Transportation (DOT) offers little improvement over the current 
    definitions.
        As an alternative, the commenter recommends that ATF consider 
    definitions and classifications based on amounts and what stage the 
    compositions, components, and semi-finished fireworks are in as they 
    move through the manufacturing process. The commenter recommends that 
    ATF provide examples distinguishing size, construction, composition, 
    effect, and labeling for purposes of defining applicability of the 
    regulations. ATF will not be adopting this suggestion at this time as 
    it would not enhance the effective administration of the Federal 
    explosives regulations.
        It has also been recommended that AFT adopt the American 
    Pyrotechnic Association's (APA) Standard 87-1 with respect to defining 
    and classifying fireworks for licensing and storage determinations, in 
    addition to the appropriate NFPA standards and codes. ATF will consider 
    incorporating these standards into the regulations in a separate notice 
    of proposed rulemaking.
        In the course of examining the U.S. Department of Transportation 
    (DOT) regulations, ATF determined that certain items do not fall within 
    the DOT definition of consumer fireworks in terms of their suitability 
    for use by the general public. Certain items present a minor explosion 
    hazard and are regulated by DOT in the same manner as consumer 
    fireworks. DOT classifies these articles as ``articles, pyrotechnic for 
    technical purposes.'' Although it is clear that these items should be 
    exempt from ATF licensing, storage, and recordkeeping requirements, 
    they are intended to be used by professional pyrotechnics operators 
    only, and not the general public. In Notice No. 841, ATF proposed that 
    articles pyrotechnic (UN0431 and UN0432) be included in the definition 
    of ``consumer fireworks.''
        In the interest of public safety, ATF has determined that a 
    separate definition is needed for articles pyrotechnic, to prevent the 
    general public from considering these items as suitable for other than 
    professional use only. Accordingly, ATF has amended the regulations to 
    clarify that the manufacture of articles pyrotechnic is regulated by 
    ATF. However, finished articles pyrotechnic, though not suitable for 
    general consumer use, are not subject to ATF importation, licensing, 
    storage, or recordkeeping requirements. This final rule amends 
    regulations in 27 CFR 55.141 to provide this exemption.
        Information regarding fused setpieces is being added to the 
    definitions of ``consumer fireworks'' and ``special fireworks'' to help 
    clarify their classification.
    
    Subpart D--Licenses and Permits
    
        Four hundred and seventeen commenters, representing 98 percent of 
    the total comments received, strongly opposed the licensing fee 
    increase. ATF proposed to raise the Federal explosives users permit fee 
    from $20 to 100. The majority of this group of commenters were 
    affiliated with one or more of the major model rocketry associations 
    such as NAR or Tripoli, whose members typically hold a Type 34 permit, 
    users of low explosives.
        As an alternative to the fee increase, this group proposed that ATF 
    designate a special type of hobby permit for exclusive use by high 
    power model rocket hobbyists which would have a lower fee than that 
    proposed by Notice No. 841. In response to these and other similar 
    comments, ATF will propose in a separate notice of proposed rulemaking 
    to create a separate definition and a lower permit fee for all 
    ``hobbyists'' who receive, transport or ship low explosive materials in 
    the pursuit of recreational or sporting activities.
        No other comments were received in opposition to the proposal to 
    raise license and permit fees. Statutory authority allows ATF to set 
    fees up to $200 for a license or permit. Accordingly, upon the 
    effective date of this final rule, the fee to engage in the business of 
    importing, manufacturing, or dealing in explosive materials increases 
    from $50 to $200; from $20 to $100 for a users permit; and from $2 to 
    $75 for a user-limited permit.
        In addition, in conjunction with the fee increases, this final rule 
    increases the term of the original license or permit from one year to 
    three years.
        Two commenters expressed opposition to the proposal to eliminate 
    the category of ``manufacturer-limited'' license. ATF bases its 
    elimination of this license on the fact that no such licenses have been 
    issued in the last 4 years and that the activities covered under the 
    manufacturers-limited license are generally of an ongoing nature and 
    thus would require a regular manufacturer's license. Accordingly, this 
    final rule eliminates the manufacturer-limited license, as proposed in 
    Notice No. 841.
    
    Subpart K--Storage
    
    Notification of the ``Authority Having Jurisdiction for Fire Safety'' 
    of Explosives Storage Sites
        Overall, commenters favored a notification requirement to the 
    appropriate local authority regarding the location of sites where 
    explosives are stored. However, approximately 200 commenters opposed a 
    sweeping requirement to notify all local law enforcement officials of 
    storage. These commenters suggest that notification be limited to local 
    emergency response personnel only, as the term ``local law enforcement 
    official'' could be interpreted broadly enough to include individuals 
    who may not necessarily have a need to know of such storage. This final 
    rule clarifies that notification shall be made specifically to the 
    ``authority having jurisdiction for fire safety,'' defined as the fire 
    department having jurisdiction for the area in which explosive 
    materials are to be manufactured or stored. ATF will make available a 
    listing of all State Fire Marshals to assist the industry in 
    determining the Authority Having Jurisdiction for Fire Safety for a 
    particular area. The list will also be posted on the ATF web page at 
    www.atf.treas.gov.
        ATF received one comment opposing the revision of section 55.218 by 
    reducing the table of distances for the storage of explosive materials 
    from 2 pounds to 0 pounds on the basis that it would require persons 
    handling less than 2 pounds of fireworks to conform with overly strict 
    separation distances. The commenter proposes that ATF should instead 
    distinguish section 55.218, Table of distances for the storage of 
    explosive materials, from section 55.219, Table of distances for 
    storage of low explosives, more clearly to show that section 55.218 
    covers high explosives and section 55.219 covers low explosives only.
    
    [[Page 45001]]
    
        ATF believes that section 55.206 adequately clarifies which table 
    of distances to use for the storage of explosive materials, including 
    when to use the table found at section 55.224 for the storage of 
    display fireworks. Accordingly, we are not adopting this comment.
        ATF is amending the table of distances in Secs. 55.222 and 55.223 
    to make it clear that, while consumer fireworks or articles pyrotechnic 
    in a finished state are not subject to regulation, explosive materials 
    used to manufacture or assemble such fireworks or articles are subject 
    to regulation. Thus, fireworks process buildings where consumer 
    fireworks or articles pyrotechnic are being processed shall meet these 
    requirements.
    
    Miscellaneous
    
        One commenter addressed a note to section 55.224, the table of 
    distances for the storage of display fireworks. Note 3 of the table of 
    distances in section 55.224 allows the distances in the table to be 
    halved for magazines which were in use prior to March 7, 1990, if 
    properly barricaded. The commenter requests that ATF clarify that 
    distances between grandfathered magazines may also be halved if 
    properly barricaded.
        ATF concurs that Note 3 in the table of distances in section 55.224 
    was also intended to apply to the distances between magazines which 
    were in use prior to March 7, 1990. Accordingly, this final rule amends 
    section 55.224 to apply Note No. 3 to the separation distances between 
    magazines.
        A technical amendment is being made to Secs. 55.45(b) and 55.46(b) 
    to specify the application used for user-limited special fireworks 
    permits, ATF Form 5400.21. In addition, a technical amendment to 
    Sec. 55.63 renames the section as ``Magazines acquired or constructed 
    after permit or license is issued.'' This change is necessary to 
    clarify the intent of this section which is to account for explosives 
    storage facilities constructed or otherwise acquired after the license 
    or permit is issued.
    
    Executive Order 12866
    
        It has been determined that this final rule is not a significant 
    regulatory action as defined in E.O. 12866. Therefore, a Regulatory 
    Assessment is not required.
    
    Regulatory Flexibility Act
    
        It is hereby certified that these final regulations will not have a 
    significant economic impact on a substantial number of small entities. 
    Accordingly, a regulatory flexibility analysis is not required. These 
    final regulations provide clarification and consistency with industry 
    terminology. In addition, the increases in license and permit fees are 
    within the maximum amounts provided by the statute. Further, the burden 
    placed on licensees and permittees for the collection and disclosure of 
    explosives manufacture and storage information to the local authority 
    having jurisdiction for explosives or fire safety is minimal.
    
    Paperwork Reduction Act
    
        The collection of information contained in this final regulation 
    has been reviewed and approved by the Office of Management and Budget 
    in accordance with the Paperwork Reduction Act (44 U.S.C. 3507(d)) 
    under control number 1512-0536. An agency may not conduct or sponsor, 
    and a person is not required to respond to, a collection of information 
    unless it displays a valid control number assigned by the Office of 
    Management and Budget. The collection of information in this regulation 
    is in 27 CFR 55.201(f). This information is required to inform fire 
    departments having jurisdiction over sites where explosives are stored 
    or manufactured so that they can protect emergency response personnel 
    called to fire scenes where explosives may be stored. The likely 
    respondents are Federal licensees and permittees who store or 
    manufacture explosive materials. The estimated total annual reporting 
    burden per respondent is 90 minutes. The estimated number of 
    respondents is 10,057. The estimated annual frequency of responses is 
    2.
        Comments concerning the accuracy of this burden estimate and 
    suggestions for reducing this burden should be directed to the Office 
    of Management and Budget, Attention: Desk Officer for the Department of 
    Treasury, Bureau of Alcohol, Tobacco and Firearms, Office of 
    Information and Regulatory Affairs, Washington, D.C., 20503, with 
    copies to the Chief, Document Services Branch, Room 3450, Bureau of 
    Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, N.W., 
    Washington, D.C., 20226.
    
    Disclosure
    
        Copies of the notice of proposed rulemaking, the written comments, 
    and this final rule will be available for public inspection during 
    normal business hours at: ATF Public Reading Room, Room 6480, 650 
    Massachusetts Avenue, NW., Washington, DC.
    
    Drafting Information
    
        The author of this document is Mark D. Waller, Arson and Explosives 
    Programs Division, Bureau of Alcohol, Tobacco and Firearms.
    
    List of Subjects in 27 CFR Part 55
    
        Administrative practice and procedure, Authority delegations, 
    Customs duties and inspection, Explosives, Hazardous materials, 
    Imports, Penalties, Reporting and recordkeeping requirements, Safety, 
    Security measures, Seizures and forfeitures, Transportation, and 
    Warehouses.
    
    Authority and Issuance
    
        For the reasons discussed in the preamble, ATF amends 27 CFR Part 
    55 as follows:
    
    PART 55--COMMERCE IN EXPLOSIVES
    
        Paragraph 1. The authority citation for 27 CFR Part 55 continues to 
    read as follows:
    
        Authority: 18 U.S.C. 847.
    
        Par. 2. Section 55.11 is amended by removing the definitions for 
    the terms ``Common fireworks,'' ``Licensed manufacturer-limited,'' 
    ``Manufacturer limited,'' and ``Special fireworks;'' by revising the 
    definitions for the terms ``Bulk salutes,'' ``Fireworks,'' ``Fireworks 
    nonprocess building,'' ``Fireworks plant warehouse,'' ``Fireworks 
    shipping building,'' ``Highway,'' and ``Salute;'' and by adding new 
    definitions for the terms ``Articles pyrotechnic,'' ``Authority having 
    jurisdiction for fire safety,'' ``Consumer fireworks,'' and ``Display 
    fireworks'' to read as follows:
    
    
    Sec. 55.11  Meaning of terms.
    
    * * * * *
        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.
    * * * * *
        Authority having jurisdiction for fire safety. The fire department 
    having jurisdiction over sites where explosives are manufactured or 
    stored.
    * * * * *
        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.
    * * * * *
        Consumer fireworks. Any small firework device designed to produce
    
    [[Page 45002]]
    
    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 
    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.
    * * * * *
        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.
    * * * * *
        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 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 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 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.
    * * * * *
        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.
    * * * * *
        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.
    * * * * *
        Par. 3. Section 55.30 is amended by removing ``800-424-9555'' in 
    paragraphs (a), (b), and the introductory text of paragraph (d) and 
    adding in its place ``1-800-800-3855'' and by revising paragraphs 
    (c)(4) and (d)(3) to read as follows:
    
    
    Sec. 55.30  Reporting theft or loss of explosive materials.
    
    * * * * *
        (c) * * *
        (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.
        (d) * * *
        (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.
        Par. 4. Section 55.41(b)(2) is revised to read as follows:
    
    
    Sec. 55.41  General.
    
    * * * * *
        (b) * * *
        (2) A separate license shall not be required of a licensed 
    manufacturer with respect to his on-site manufacturing.
    * * * * *
        Par. 5. Section 55.42 is revised to read as follows:
    
    
    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.
        (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.
        Par. 6. Section 55.43 is revised to read as follows:
    
    
    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.
    
    
    Sec. 55.45  [Amended]
    
        Par. 7. Section 55.45(b) is amended by adding ``or Permit, User 
    Limited Special Fireworks, ATF F 5400.21'' after ``ATF F 5400.16'' in 
    the first sentence and by adding ``and ATF F 5400.21'' after ``ATF F 
    5400.16'' in the last sentence.
        Par. 8. Section 55.46(b) is revised to read as follows:
    
    
    Sec. 55.46  Renewal of license or permit.
    
    * * * * *
        (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 ATF F 5400.16 or ATF F 5400.21, as required by 
    Sec. 55.45.
        Par. 9. Section 55.51 is revised to read as follows:
    
    
    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.
        Par. 10. Section 55.63 is amended by revising the heading of 
    paragraph (d) to read as follows:
    
    
    Sec. 55.63  Explosives magazine changes.
    
    * * * * *
        (d) Magazines acquired or constructed after permit or license is 
    issued. * * *
        Par. 11. Section 55.102 is revised to read as follows:
    
    
    Sec. 55.102  Authorized operations by permittees.
    
        (a) In general. 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 manufacturer, importer, 
    or dealer under this part, he shall qualify for the appropriate 
    license.
        (b) Distributions of surplus stocks. Permittees are not authorized 
    to engage in the business of sale or distribution of explosive 
    materials. However, permittees may dispose of surplus stocks of 
    explosive materials to other licensees or permittees in accordance
    
    [[Page 45003]]
    
    with Sec. 55.103, and to nonlicensees or to nonpermittees in accordance 
    with Sec. 55.105(d).
        Par. 12. Section 55.103 (a)(1) and (2) is revised to read as 
    follows:
    
    
    Sec. 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 disposing of surplus stock to a licensee or another 
    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 
    disposing of surplus stock to another licensee or permittee) shall 
    verify the license or permit status of the distributee prior to the 
    release of explosive materials ordered, as required by this section.
    * * * * *
        Par. 13. Section 55.105(d) is revised to read as follows:
    
    
    Sec. 55.105  Distributions to nonlicenses and nonpermittees.
    
    * * * * *
        (d) 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 permittee's 
    business premises or operations are located, or is a resident of a 
    State contiguous to the State in which the 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.
    * * * * *
    
    
    Sec. 55.122  [Amended]
    
        Par. 14. Section 55.122 is amended by removing ``special 
    fireworks'' wherever it appears in paragraphs (b)(4), (b)(5), (c)(4), 
    and (c)(5) and adding in its place ``display fireworks'', and by 
    removing ``(sf)'' in paragraphs (b)(5) and (c)(5) and adding in its 
    place ``(df)''.
    
    
    Sec. 55.123  [Amended]
    
        Par. 15. Section 55.123 is amended by removing ``special 
    fireworks'' wherever it appears in paragraphs (b)(3), (b)(4), (c)(4), 
    (c)(5), and (d)(3), and adding in its place ``display fireworks'', and 
    by removing ``(sf)'' in paragraphs (b)(4), (c)(5), and (d)(3) and 
    adding in its place ``(df)''.
    
    
    Sec. 55.124  [Amended]
    
        Par. 16. Section 55.124 is amended by removing ``special 
    fireworks'' wherever it appears in paragraphs (b)(4), (b)(5), (c)(4), 
    and (c)(5) and adding in its place ``display fireworks'', and by 
    removing ``(sf)'' in paragraphs (b)(5) and (c)(5) and adding in its 
    place ``(df)''.
        Par. 17. Section 55.125 is amended by revising the section heading 
    and the introductory text of paragraph (a); by removing ``license or'' 
    in paragraph (a)(1) and ``licensee or'' in the third sentence of 
    paragraph (a); by removing paragraph (b) and redesignating paragraphs 
    (c), (d), (e), and (f) as (b), (c), (d), and (e); and by revising 
    redesignated paragraphs (b)(4) and (b)(5) to read as follows:
    
    
    Sec. 55.125  Records maintained by permittees.
    
        (a) Each permittee shall take true and accurate physical 
    inventories which shall include all explosive materials on hand 
    required to be accounted for in the records kept under this part. The 
    permittee shall take a special inventory * * *
        (b) * * *
        (4) Quantity (applicable quantity units, such as pounds of 
    explosives, number of detonators, number of display fireworks, etc.).
        (5) Description (dynamite (dyn), blasting agents (ba), detonators 
    (det), display fireworks (df), (etc.) and size (length and diameter or 
    diameter only of display fireworks)).
    * * * * *
        Par. 18. Section 55.127 is amended by revising the first sentence 
    and by removing ``special fireworks'' wherever it appears and adding in 
    its place ``display fireworks'' to read as follows:
    
    
    Sec. 55.127  Daily summary of magazine transactions.
    
        In taking the inventory required by Sec. Sec. 55.122, 55.123, 
    55.124, and 55.125, a licensee or permittee shall enter the inventory 
    in a record of daily summary transactions to be kept at each magazine 
    of an approved storage facility; however, these records may be kept at 
    one central location on the business premises if separate records of 
    daily transactions are kept for each magazine. * * *
        Par. 19. Section 55.141(a)(7) is revised to read as follows:
    
    
    Sec. 55.141  Exemptions.
    
        (a) * * *
        (7) The importation, distribution, and storage of fireworks 
    classified as UN0336, UN0337, UN0431, or UN0432 explosives by the U.S. 
    Department of Transportation at 49 CFR 172.101 and generally known as 
    ``consumer fireworks'' or ``articles pyrotechnic.''
    * * * * *
    
    
    Sec. 55.163  [Amended]
    
        Par. 20. Section 55.163 is amended by removing ``licensed 
    manufacturer-limited,''.
        Par. 21. Section 55.201 is amended by revising paragraph (d), by 
    adding paragraph (f), and by adding a parenthetical text at the end of 
    the section to read as follows:
    
    
    Sec. 55.201  General.
    
    * * * * *
        (d) The regulations set forth in Sec. Sec. 55.221 through 55.224 
    pertain to the storage of display fireworks, pyrotechnic compositions, 
    and explosive materials used in assembling fireworks and articles 
    pyrotechnic.
    * * * * *
        (f) Any person who stores explosive materials shall notify the 
    authority having jurisdiction for fire safety in the locality in which 
    the explosive materials are being stored of the type, magazine 
    capacity, and location of each site where such explosive materials are 
    stored. Such notification shall be made orally before the end of the 
    day on which storage of the explosive materials commenced and in 
    writing within 48 hours from the time such storage commenced.
        (Paragraph (f) approved by the Office of Management and Budget 
    under control number 1512-0536)
        Par. 22. Section 55.202(b) is revised to read as follows:
    
    
    Sec. 55.202  Classes of explosive materials.
    
    * * * * *
        (b) Low explosives. Explosive materials which can be caused to 
    deflagrate when confined (for example, black powder, safety fuses, 
    igniters, igniter cords, fuse lighters, and ``display fireworks'' 
    classified as UN0333, UN0334, or UN0335 by the U.S. Department of 
    Transportation regulations at 49 CFR 172.101, except for bulk salutes).
    * * * * *
    
    
    Sec. 55.206  [Amended]
    
        Par. 23. Section 55.206(b) is amended by removing ``special 
    fireworks'' and adding in its place ``display fireworks''.
        Par. 24. Section 55.218 is amended by removing ``Public highways 
    glass A to D'' where it appears in the table heading, and adding in its 
    place ``Public highways with traffic volume 3000 or less vehicles/
    day''; by removing the
    
    [[Page 45004]]
    
    number ``2'' where it appears as the first entry in the column titled 
    ``Pounds over'' and adding in its place the number ``0;'' and by 
    revising the source citation at the end of the table to read as 
    follows:
    
    
    Sec. 55.218  Table of distances for storage of explosive materials.
    
    * * * * *
        Table: American Table of Distances for Storage of Explosives 
    (December 1910), as Revised and Approved by the Institute of Makers of 
    Explosives-July, 1991.
        Par. 25. Section 55.221 is amended by revising the section heading 
    and paragraphs (a) and (d) to read as follows:
    
    
    Sec. 55.221  Requirements for display fireworks, pyrotechnic 
    compositions, and explosive materials used in assembling fireworks or 
    articles pyrotechnic.
    
        (a) Display fireworks, pyrotechnic compositions, and explosive 
    materials used to assemble fireworks and articles pyrotechnic shall be 
    stored at all times as required by this Subpart unless they are in the 
    process of manufacture, assembly, packaging, or are being transported.
    * * * * *
        (d) All dry explosive powders and mixtures, partially assembled 
    display fireworks, and finished display fireworks shall be removed from 
    fireworks process buildings at the conclusion of a day's operations and 
    placed in approved magazines.
        Par. 26. Section 55.222 is amended by removing ``special 
    fireworks'' wherever it appears and adding in its place ``display 
    fireworks''; by removing ``common fireworks'' wherever it appears and 
    adding in its place ``consumer fireworks''; and by revising footnote 3 
    at the end of the table to read as follows:
    
    
    Sec. 55.222  Table of distances between fireworks process buildings and 
    between fireworks process and fireworks nonprocess buildings.
    
    * * * * *
        \3\ While consumer fireworks or articles pyrotechnic in a 
    finished state are not subject to regulation, explosive materials 
    used to manufacture or assemble such fireworks or articles are 
    subject to regulation. Thus, fireworks process buildings where 
    consumer fireworks or articles pyrotechnic are being processed shall 
    meet these requirements.
    * * * * *
        Par. 27. Section 55.223 is amended by revising the title heading of 
    the table; by removing ``special fireworks'' in the table heading and 
    adding in its place ``display fireworks''; by removing ``common 
    fireworks'' in the table heading and adding in its place ``consumer 
    fireworks''; by revising footnote 2 and adding a new footnote 5 at the 
    end of the table to read as follows:
    
    
    Sec. 55.223  Table of distances between fireworks process buildings and 
    other specified areas.
    
        Distance from Passenger Railways, Public Highways, Fireworks Plant 
    Buildings used to Store Consumer Fireworks and Articles Pyrotechnic, 
    Magazines and Fireworks Shipping Buildings, and Inhabited Buildings. 
    \3\ \4\ \5\
    * * * * *
        \2\ While consumer fireworks or articles pyrotechnic in a 
    finished state are not subject to regulation, explosive materials 
    used to manufacture or assemble such fireworks or articles are 
    subject to regulation. Thus, fireworks process buildings where 
    consumer fireworks or articles pyrotechnic are being processed shall 
    meet these requirements.
        \3\ This table does not apply to the separation distances 
    between fireworks process buildings (see Sec. 55.222) and between 
    magazines (Secs. 55.218 and 55.224).
        \4\ The distances in this table apply with or without artificial 
    or natural barricades or screen barricades. However, the use of 
    barricades is highly recommended.
        \5\ No work of any kind, except to place or move items other 
    than explosive materials from storage, shall be conducted in any 
    building designated as a warehouse. A fireworks plant warehouse is 
    not subject to Sec. 55.222 or this section, tables of distances.
    
    
    Sec. 55.224  [Amended]
    
        Par. 28. Section 55.224 is amended by removing ``special 
    fireworks'' wherever it appears and adding in its place ``display 
    fireworks'', and by adding footnote reference ``3'' after ``2'' in the 
    title heading for the third column of the table.
    
        Signed: May 28, 1998.
    John W. Magaw,
    Director.
        Approved: July 14, 1998.
    John P. Simpson,
    Deputy Assistant Secretary (Regulatory, Tariff, and Trade Enforcement).
    [FR Doc. 98-21867 Filed 8-21-98; 8:45 am]
    BILLING CODE 4810-31-M
    
    
    

Document Information

Effective Date:
12/22/1998
Published:
08/24/1998
Department:
Alcohol, Tobacco, Firearms, and Explosives Bureau
Entry Type:
Rule
Action:
Final rule, Treasury decision.
Document Number:
98-21867
Dates:
This final rule is effective December 22, 1998.
Pages:
44999-45004 (6 pages)
Docket Numbers:
T.D. ATF-400, Ref: Notice No. 841
RINs:
1512-AB55: Commerce in Explosives
RIN Links:
https://www.federalregister.gov/regulations/1512-AB55/commerce-in-explosives
PDF File:
98-21867.pdf
CFR: (27)
27 CFR 55.11
27 CFR 55.30
27 CFR 55.41
27 CFR 55.42
27 CFR 55.43
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