[Code of Federal Regulations]
[Title 27, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR555.103]

[Page 180-183]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
   CHAPTER II--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES, 
                          DEPARTMENT OF JUSTICE
 
PART 555_COMMERCE IN EXPLOSIVES--Table of Contents
 
               Subpart F_Conduct of Business or Operations
 
Sec. 555.103  Transactions among licensees/permittees and transactions 
among licensees and holders of user permits.

    (a) Transactions among licensees/permittees prior to May 24, 2003. 
(1) General.

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(i) 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.
    (ii) 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) must verify 
the license or permit status of the distributee prior to the release of 
explosive materials ordered, as required by this section.
    (iii) Licensees or permittees desiring to return explosive materials 
to a licensed manufacturer may do so without obtaining a certified copy 
of the manufacturer's license.
    (iv) Where possession of explosive materials is transferred at the 
distributor's premises, the distributor must in all instances verify the 
identity of the person accepting possession on behalf of the distributee 
before relinquishing possession. Before the delivery at the 
distributor's premises of explosive materials to an employee of a 
licensee or permittee, or to an employee of a common or contract carrier 
transporting explosive materials to a licensee or permittee, the 
distributor delivering explosive materials must obtain an executed ATF F 
5400.8, Explosives Delivery Record, from the employee before releasing 
the explosive materials. The ATF F 5400.8 must contain all of the 
information required on the form and required by this part.

    Example 1. An ATF F 5400.8 is required when:
    a. An employee of the purchaser takes possession at the 
distributor's premises.
    b. An employee of a common or contract carrier hired by the 
purchaser takes possession at the distributor's premises.
    Example 2. An ATF F 5400.8 is not required when:
    a. An employee of the distributor takes possession of the explosives 
for the purpose of transport to the purchaser.
    b. An employee of a common or contract carrier hired by the 
distributor takes possession of the explosives for the purpose of 
transport to the purchaser.

    (2) License/permit verification of individuals. (i) The distributee 
must furnish a certified copy (or, in the case of a user-limited, the 
original) of the license or permit. The certified copy need be furnished 
only once during the current term of the license or permit. Also, a 
licensee need not furnish certified copies of licenses to other licensed 
locations operated by such licensee.
    (ii) The distributor may obtain any additional verification as the 
distributor deems necessary.
    (3) License/permit verification of business organizations. (i) A 
business organization may (in lieu of furnishing a certified copy of a 
license) furnish the distributor a certified list which contains the 
name, address, license number and date of license expiration of each 
licensed location. The certified list need be furnished only once during 
the current term of the license or permit. Also, a business organization 
need not furnish a certified list to other licensed locations operated 
by such business organization.
    (ii) A business organization must, prior to ordering explosive 
materials, furnish the licensee or permittee a current certified list of 
the representatives or agents authorized to order explosive materials on 
behalf of the business organization showing the name, address, and date 
and place of birth of each representative or agent. A licensee or 
permittee may not distribute explosive materials to a business 
organization on the order of a person who does not appear on the 
certified list of representatives or agents and, if the person does 
appear on the certified list, the licensee or permittee must verify the 
identity of such person.
    (4) Licensee/permittee certified statement. (i) A licensee or 
permittee ordering explosive materials from another licensee or 
permittee must furnish a current, certified statement of the intended 
use of the explosive materials, e.g., resale, mining, quarrying, 
agriculture, construction, sport rocketry,

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road building, oil well drilling, seismographic research, to the 
distributor.
    (ii) For individuals, the certified statement of intended use must 
specify the name, address, date and place of birth, and social security 
number of the distributee.
    (iii) For business organizations, the certified statement of 
intended use must specify the taxpayer identification number, the 
identity and the principal and local places of business.
    (iv) The licensee or permittee purchasing explosive materials must 
revise the furnished copy of the certified statement only when the 
information is no longer current.
    (5) User-limited permit transactions. A user-limited permit issued 
under the provisions of this part is valid for only a single purchase 
transaction and is not renewable (see Sec. 555.51). Accordingly, at the 
time a user-limited permittee orders explosive materials, the licensed 
distributor must write on the front of the user-limited permit the 
transaction date, his signature, and the distributor's license number 
prior to returning the permit to the user-limited permittee.
    (b) Transactions among licensees/permittees on and after May 24, 
2003. (1) General. (i) A licensed importer, licensed manufacturer or 
licensed dealer selling or otherwise distributing explosive materials 
(or a holder of a user permit disposing of surplus stock to a licensee; 
a holder of a user permit; or a holder of a limited permit who is within 
the same State as the distributor) 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.
    (ii) A licensed importer, licensed manufacturer or licensed dealer 
selling or otherwise distributing explosive materials (or a holder of a 
user permit disposing of surplus stock to another licensee or permittee) 
must verify the license or permit status of the distributee prior to the 
release of explosive materials ordered, as required by this section.
    (iii) Licensees or permittees desiring to return explosive materials 
to a licensed manufacturer may do so without obtaining a certified copy 
of the manufacturer's license.
    (2) Verification of license/user permit. (i) Prior to or with the 
first order of explosive materials, the distributee must provide the 
distributor a certified copy (or, in the case of a user-limited, the 
original) of the distributee's license or user permit. However, 
licensees or holders of user permits that are business organizations may 
(in lieu of a certified copy of a license or user permit) provide the 
distributor with a certified list that contains the name, address, 
license or user permit number, and date of the license or user permit 
expiration of each location.
    (ii) The distributee must also provide the distributor with a 
current list of the names of persons authorized to accept delivery of 
explosive materials on behalf of the distributee. The distributee 
ordering explosive materials must keep the list current and provide 
updated lists to licensees and holders of user permits on a timely 
basis. A distributor may not transfer possession of explosive materials 
to any person whose name does not appear on the current list of names of 
persons authorized to accept delivery of explosive materials on behalf 
of the distributee. Except as provided in paragraph (b)(3) of this 
section, in all instances the distributor must verify the identity of 
the distributee, or the employee of the distributee accepting possession 
of explosive materials on behalf of the distributee, by examining an 
identification document (as defined in Sec. 555.11) before 
relinquishing possession.
    (iii) A licensee or holder of a user permit ordering explosive 
materials from another licensee or permittee must provide to the 
distributor a current, certified statement of the intended use of the 
explosive materials, e.g., resale, mining, quarrying, agriculture, 
construction, sport rocketry, road building, oil well drilling, 
seismographic research, etc.
    (A) For individuals, the certified statement of intended use must 
specify the name, address, date and place of

[[Page 183]]

birth, and social security number of the distributee.
    (B) For business organizations, the certified statement of intended 
use must specify the taxpayer identification number, the identity and 
the principal and local places of business.
    (C) The licensee or holder of a user permit purchasing explosive 
materials must revise the furnished copy of the certified statement only 
when the information is no longer current.
    (3) Delivery of explosive materials by common or contract carrier. 
When a common or contract carrier will transport explosive materials 
from a distributor to a distributee who is a licensee or holder of a 
user permit, the distributor must take the following actions before 
relinquishing possession of the explosive materials:
    (i) Verify the identity of the person accepting possession for the 
common or contract carrier by examining such person's valid, unexpired 
driver's license issued by any State, Canada, or Mexico; and
    (ii) Record the name of the common or contract carrier (i.e., the 
name of the driver's employer) and the full name of the driver. This 
information must be maintained in the distributor's permanent records in 
accordance with Sec. 555.121.
    (4) User-limited permit transactions. A user-limited permit issued 
under the provisions of this part is valid for only a single purchase 
transaction and is not renewable (see Sec. 555.51). Accordingly, at the 
time a user-limited permittee orders explosive materials, the licensed 
distributor must write on the front of the user-limited permit the 
transaction date, his signature, and the distributor's license number 
prior to returning the permit to the user-limited permittee.

(Approved by the Office of Management and Budget under control number 
1140-0079)

[ATF No. 1, 68 FR 13787, Mar. 20, 2003, as amended by ATF No. 2, 68 FR 
53512, Sept. 11, 2003]