27 CFR 555.125 Records maintained by permittees

Bureau of Alcohol, Tobacco, Firearms, and Explosives, Justice
(d) When a commercial record is kept
by a licensed dealer showing the purchase or other acquisition information
required for the permanent record prescribed by paragraph (b) of this section,
or showing the distribution information required for the permanent record
prescribed by paragraph (c) of this section, the licensed dealer acquiring or
distributing the explosive materials
may, for a period not exceeding seven
days following the date of acquisition
of distribution of the explosive materials, delay making the required entry
into the permanent record of acquisition or distribution. However, until the
required entry of acquisition or disposition is made in the permanent
record, the commercial record must be
(1) kept by the licensed dealer separate
from other commercial documents
kept by the licensee, and (2) readily
available for inspection on the licensed
premises.
(e) The Chief, Explosives Industry
Programs Branch may authorize alternate records to be maintained by a licensed dealer to record his acquisition
or disposition of explosive materials,
when it is shown by the licensed dealer
that alternate records will accurately
and readily disclose the required information. A licensed dealer who proposes
to use alternate records shall submit a
letter application to the Chief, Explosives Industry Programs Branch and
shall describe the proposed alternate
records and the need for them. Alternate records are not to be employed by
the licensed dealer until approval is received from the Chief, Explosives Industry Programs Branch.
(f) Each licensed dealer shall maintain separate records of the sales or
other distribution made of explosive
materials to nonlicensees or nonpermittees. These records are maintained as prescribed by § 555.126.

kpayne on VMOFRWIN702 with $$_JOB

(Approved by the Office of Management and
Budget under control number 1140–0030)
[T.D. ATF–87, 46 FR 40384, Aug. 7, 1981, as
amended by T.D. ATF–172, 49 FR 14941, Apr.
16, 1984; T.D. ATF–293, 55 FR 3721, Feb. 5,
1990; T.D. ATF–400, 63 FR 45003, Aug. 24, 1998;
ATF–11F, 73 FR 57242, Oct. 2, 2008; ATF
2013R–9F, 79 FR 46694, Aug. 11, 2014]

§ 555.125 Records maintained by permittees.
(a) [Reserved]
(b) Records maintained by permittees on
and after May 24, 2003. (1) Each holder
of a user permit must take true and accurate physical inventories that will
include all explosive materials on hand
required to be accounted for in the
records kept under this part. The permittee must take a special inventory—
(i) At the time of commencing business, which is the effective date of the
permit issued upon original qualification under this part;
(ii) At the time of changing the location of his premises;
(iii) At the time of discontinuing
business; and
(iv) At any other time the Director,
Industry Operations may in writing require. Each special inventory is to be
prepared in duplicate, the original of
which is submitted to the Director, Industry Operations and the duplicate retained by the permittee. If a special inventory required by paragraphs (b)(1)(i)
through (iv) of this section has not
been taken during the calendar year, a
permittee is required to take at least
one physical inventory. The record of
the yearly inventory, other than a special inventory required by paragraphs
(b)(1)(i) through (iv) of this section,
will remain on file for inspection instead of being sent to the Director, Industry Operations. (See also § 555.127.)
(2) Each holder of a limited permit
must take true and accurate physical
inventories, at least annually, that will
include all explosive materials on hand
required to be accounted for in the
records kept under this part.
(3) Each holder of a user permit or a
limited permit must, not later than the
close of the next business day following
the date of acquisition of explosive materials, enter the following information
in a separate record:
(i) Date of acquisition;
(ii) Name or brand name of manufacturer;
(iii) Manufacturer’s marks of identification;
(iv) Quantity (applicable quantity
units, such as pounds of explosives,
number of detonators, number of display fireworks, etc.);

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§ 555.126

27 CFR Ch. II (4–1–20 Edition)

(v) Description (dynamite (dyn),
blasting agents (ba), detonators (det),
display fireworks (df), etc., and size
(length and diameter or diameter only
of display fireworks)); and
(vi) Name, address, and license number of the persons from whom the explosive materials are received.
(4) Each holder of a user permit or a
limited permit must, not later than the
close of the next business day following
the date of disposition of surplus explosive materials to another permittee or
a licensee, enter in a separate record
the
information
prescribed
in
§ 555.124(c).
(5) When a record book is used as a
permittee’s permanent record the permittee may delay entry of the required
information for a period not to exceed
seven days if the commercial record
contains all of the required information prescribed by paragraphs (b)(3) and
(b)(4) of this section. However, the
commercial record may be used instead
of a record book as a permanent record
provided that the record contains all of
the required information prescribed by
paragraphs (b)(3) and (b)(4) of this section.
(6) Each holder of a user permit or a
limited permit must maintain separate
records of disposition of surplus stocks
of explosive materials to holders of a
limited permit as prescribed in § 555.126.
(7) The Chief, Explosives Industry
Programs Branch may authorize alternate records to be maintained by a
holder of a user permit or a limited
permit to record his acquisition of explosive materials, when it is shown by
the permittee that alternate records
will accurately and readily disclose the
required information. A permittee who
proposes to use alternate records must
submit a letter application to the
Chief, Explosives Industry Programs
Branch and must describe the proposed
alternate records and the need for
them. Alternate records are not to be
employed by the permittee until approval is received from the Chief, Explosives Industry Programs Branch.

kpayne on VMOFRWIN702 with $$_JOB

(Approved by the Office of Management and
Budget under control number 1140–0030)
[ATF No. 1, 68 FR 13790, Mar. 20, 2003, as
amended by ATF 2013R–9F, 79 FR 46694, Aug.
11, 2014; ATF 2017R–21, 84 FR 13799, Apr. 8,
2019]

§ 555.126 Limited Permittee Transaction Report for distribution of explosive materials.
(a) [Reserved]
(b) Limited Permittee Transaction Report for distribution of explosive materials
on and after May 24, 2003. (1) A licensee
or permittee may not distribute explosive materials to any person who is not
a licensee or permittee. A licensee or
permittee may not distribute explosive
materials to a limited permittee unless
the distributor records the transaction
on ATF Form 5400.4, Limited Permittee Transaction Report.
(2) Before distributing explosive materials to a limited permittee, the licensee or permittee must obtain an executed Form 5400.4 from the limited
permittee with an original unaltered
and unexpired Intrastate Purchase of
Explosives Coupon (IPEC) affixed. Except when delivery of explosive materials is made by a common or contract
carrier who is an agent of the limited
permittee, the licensee, permittee, or
an agent of the licensee or permittee,
must verify the identity of the holder
of the limited permit by examining an
identification document (as defined in
§ 555.11) and noting on the Form 5400.4
the type of document presented. The licensee or permittee must complete the
appropriate section on Form 5400.4 to
indicate the type and quantity of explosive materials distributed, the license or permit number of the seller,
and the date of the transaction. The licensee or permittee must sign and date
the form and include any other information required by the instructions on
the form and the regulations in this
part.
(3) One copy of Form 5400.4 must be
retained by the distributor as part of
his permanent records in accordance
with paragraph (b)(4) of this section
and for the period specified in § 555.121.
The distributor must mail the other
copy of Form 5400.4 to the Bureau of
Alcohol, Tobacco, Firearms and Explosives in accordance with the instructions on the form.
(4) Each Form 5400.4 must be retained
in chronological order by date of disposition, or in alphabetical order by
name of limited permittee. A licensee
may not, however, use both methods in
a single recordkeeping system. Where

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