27 CFR 555.103 Transactions among licensees/permittee

Bureau of Alcohol, Tobacco, Firearms, and Explosives, Justice
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
§ 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
are manufactured, imported, or distributed.

kpayne on VMOFRWIN702 with $$_JOB

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

§ 555.102 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, permit-

tees 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; ATF 2017R–21, 84 FR 13799, Apr. 8, 2019]

§ 555.103 Transactions among licensees/permittees
and
transactions
among licensees and holders of user
permits.
(a) [Reserved]
(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

137

VerDate Sep<11>2014

15:19 Jun 12, 2020

Jkt 250113

PO 00000

Frm 00147

Fmt 8010

§ 555.103

Sfmt 8010

Q:\27\27V3.TXT

PC31

kpayne on VMOFRWIN702 with $$_JOB

§ 555.104

27 CFR Ch. II (4–1–20 Edition)

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
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)
[ATF No. 1, 68 FR 13787, Mar. 20, 2003, as
amended by ATF No. 2, 68 FR 53512, Sept. 11,
2003; ATF 2017R–21, 84 FR 13799, Apr. 8, 2019]

§ 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
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

138

VerDate Sep<11>2014

15:19 Jun 12, 2020

Jkt 250113

PO 00000

Frm 00148

Fmt 8010

Sfmt 8010

Q:\27\27V3.TXT

PC31