27 CFR 555.103 Transactions among licensees/permittee

§ 555.82

27 CFR Ch. II (4–1–17 Edition)

§ 555.82 Provisions of part 200 made
applicable.

are manufactured, imported, or distributed.

The provisions of subpart G of part
200 of this chapter, as well as those provisions of part 71 relative to failure to
appear, withdrawal of an application or
surrender of a permit, the conduct of
hearings before an administrative law
judge, and record of testimony, are
hereby made applicable to application,
license, and permit proceedings under
this subpart to the extent that they are
not contrary to or incompatible with
this subpart.

[T.D. ATF–87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF–487, 68 FR 3748, Jan.
24, 2003. ATF No. 1, 68 FR 13786, Mar. 20, 2003]

§ 555.83 Operations by licensees or
permittees after notice of denial or
revocation.
In any case where a notice of revocation has been issued and a request for a
stay of the effective date of the revocation has not been granted, the licensee
or permittee shall not engage in the activities covered by the license or permit pending the outcome of proceedings under this subpart. In any
case where notice of revocation has
been issued but a stay of the effective
date of the revocation has been granted, the licensee or permittee may continue to engage in the activities covered by his license or permit unless, or
until, formally notified to the contrary: Provided, That in the event the
license or permit would have expired
before proceedings under this subpart
are completed, timely renewal application must have been filed to continue
the license or permit beyond its expiration date. In any case where a notice of
denial of a renewal application has
been issued, the licensee or permittee
may continue to engage in the activities covered by the existing license or
permit after the date of expiration of
the license or permit until proceedings
under this subpart are completed.

Subpart F—Conduct of Business or
Operations

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§ 555.101 Posting of license or user
permit.
A license or user permit issued under
this part, or a copy of a license or user
permit, will be posted and available for
inspection on the business premises at
each place where explosive materials

§ 555.102 Authorized
permittees.

operations

(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—(1)
Distributions of surplus stocks prior to
May 24, 2003. 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 with § 555.103, and to nonlicensees or to nonpermittees in accordance with § 555.105(a)(4).
(2) Distributions of surplus stocks on
and after May 24, 2003. 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 with § 555.103 and
§ 555.105.
[T.D. ATF–400, 63 FR 45002, Aug. 24, 1998, as
amended by ATF No. 1, 68 FR 13787, Mar. 20,
2003]

§ 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.
(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

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Bureau of Alcohol, Tobacco, Firearms, and Explosives, Justice
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.

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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 li-

§ 555.103

cense 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,
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

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§ 555.103

27 CFR Ch. II (4–1–17 Edition)

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 § 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 ex-

plosive 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 § 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
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

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Bureau of Alcohol, Tobacco, Firearms, and Explosives, Justice
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
§ 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 § 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)

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

§ 555.104 Certified copy of license or
permit.
Except as provided in § 555.49(a), each
person issued a license or permit under
this part shall be furnished together
with his license or permit a copy for
his certification. If a person desires an
additional copy of his license or permit
for certification and for use under
§ 555.103, he shall:
(a) Make a reproduction of the copy
of his license or permit and execute the
certification on it;
(b) Make a reproduction of his license
or permit, enter on the reproduction

§ 555.105

the statement: ‘‘I certify that this is a
true copy of a (insert the word license or
permit) issued to me to engage in the
specified business or operations’’, and
sign his name next to the statement; or
(c) Submit a request, in writing, for
certified copies of his license or permit
to the Chief, Federal Explosives Licensing Center. The request will show
the name, trade name (if any), and address of the licensee or permittee and
the number of copies of the license or
permit desired. There is a fee of $1 for
each copy of a license or permit issued
by the Chief, Federal Explosives Licensing Center under this paragraph.
Fee payment must accompany each request for additional copies of a license
or permit. The fee must be paid by (1)
cash, or (2) money order or check made
payable to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
[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 2013R–9F, 79 FR 46694, Aug.
11, 2014]

§ 555.105 Distributions to nonlicensees,
nonpermittees, and limited permittees.
(a) Distributions to nonlicensees and
nonpermittees prior to May 24, 2003. (1)
This section will apply in any case
where distribution of explosive materials to the distributee is not otherwise
prohibited by the Act or this part.
(2) Except as provided in paragraph
(a)(3) of this section, a licensed importer, licensed manufacturer, or licensed dealer may distribute explosive
materials to a nonlicensee or nonpermittee if the nonlicensee or nonpermittee is a resident of the same State
in which the licensee’s business premises are located, and the nonlicensee or
nonpermittee furnishes to the licensee
the explosives transaction record, ATF
F 5400.4, required by § 555.126. Disposition of ATF F 5400.4 will be made in accordance with § 555.126.
(3) A licensed importer, licensed
manufacturer, or licensed dealer may
sell or distribute explosive materials to
a resident of a State contiguous to the
State in which the licensee’s place of
business is located if the purchaser’s
State of residence has enacted legislation, currently in force, specifically authorizing a resident of that State to

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