27 CFR 555.105 Distributions to Limited Permittees

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

kpayne on VMOFRWIN702 with $$_JOB

[T.D. ATF–87, 46 FR 40384, Aug. 7, 1981, as
amended by T.D. ATF–290, 54 FR 53054, Dec.
27, 1989; ATF 2013R–9F, 79 FR 46694, Aug. 11,
2014]

§ 555.105 Distributions to limited permittees.
(a) [Reserved]
(b) Distributions to holders of limited
permits on and after 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) A licensed importer, licensed
manufacturer or a licensed dealer may
distribute explosive materials to a
holder of a limited permit if such permittee is a resident of the same State
in which the licensee’s business premises are located, the holder of the limited permit presents in person or by
mail ATF Form 5400.4, Limited Permittee Transaction Report (LPTR),
and the licensee completes Form 5400.4
in accordance with § 555.126(b). In no
event will a licensee distribute explosive materials to a holder of a limited
permit unless the holder presents a
Form 5400.4 with an original unaltered
and unexpired Intrastate Purchase of
Explosives Coupon (IPEC), ATF Form
5400.30, affixed. The coupon must bear
the name, address, permit number, and
the coupon number of the limited permittee seeking distribution of the explosives.
(3) A holder of a limited permit is authorized to receive explosive materials
from a licensee or permittee whose
premises are located in the same State
of residence in which the premises of
the holder of the limited permit are located on no more than 6 separate occa-

sions during the one-year period of the
permit. For purposes of this section,
the term ‘‘6 separate occasions’’ means
six deliveries of explosive materials.
Each delivery must—
(i) Relate to a single purchase transaction made on one ATF F 5400.4;
(ii) Be referenced on one commercial
invoice or purchase order; and
(iii) Be delivered to the holder of the
limited permit in one shipment delivered at the same time.
(4) A holder of a user permit may dispose of surplus stocks of explosive materials to a licensee or holder of a user
permit, or a holder of a limited permit
who is a resident of the same State in
which the premises of the holder of the
user permit are located. A holder of a
limited permit may dispose of surplus
stocks of explosive materials to another holder of a limited permit who is
a resident of the same State in which
the premises of the distributor are located, if the transaction complies with
the requirements of paragraph (b)(2) of
this section and § 555.126(b). A holder of
a limited permit may also dispose of
surplus stocks of explosive materials to
a licensee or holder of a user permit if
the disposition occurs in the State of
residence of the holder of the limited
permit. (See § 555.103.)
(5) Each holder of a limited permit
ordering explosive materials must furnish the distributing licensee prior to
or with the first order of the explosive
materials a current list of the names of
employees authorized to accept delivery of explosive materials on behalf of
the limited permittee. 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 licensed
importer, licensed manufacturer, licensed dealer, or permittee, selling or
otherwise distributing explosive materials to a holder of a limited permit
must, prior to delivering the explosive
materials, obtain from the limited permittee a current list of persons who are
authorized to accept deliveries of explosive materials on behalf of the limited permittee. A licensee or permittee
may not deliver explosive materials to
a person whose name does not appear
on the list.

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§ 555.105

27 CFR Ch. II (4–1–20 Edition)

(6)(i) Delivery at the distributor’s premises. Where possession of explosive materials is transferred directly to the
distributee at the distributor’s premises, the distributor must obtain an executed Form 5400.4 in accordance with
§ 555.126(b) and must in all instances
verify the identity of the person accepting possession on behalf of the distributee by examining an identification document (as defined in § 555.11)
before relinquishing possession.
(ii) Delivery by distributor. Where possession of explosive materials is transferred by the distributor to the distributee away from the distributor’s
premises, the distributor must obtain
an executed Form 5400.4 in accordance
with § 555.126(b) and must in all instances verify the identity of the person accepting possession on behalf of
the distributee by examining an identification document (as defined in
§ 555.11) before relinquishing possession.
(iii) Delivery by common or contract
carrier hired by the distributor. Where a
common or contract carrier hired by
the distributor will transport explosive
materials from the distributor to a
holder of a limited permit:
(A) The limited permittee must,
prior to delivery of the explosive materials, complete the appropriate section
on Form 5400.4, affix to the Form 5400.4
one of the six IPECs he has been issued,
and provide the form to the distributor
in person or by mail.
(B) The distributor must, before relinquishing possession of the explosive
materials to the common or contract
carrier:
(1) 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
(2) 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.
(C) At the time of delivery of the explosive materials, the common or contract carrier, as agent for the distributor, must verify the identity of
the person accepting delivery on behalf

of the distributee, note the type and
number of the identification document
(as defined in § 555.11) and provide this
information to the distributor. The distributor must enter this information in
the appropriate section on Form 5400.4.
(iv) Delivery by common or contract
carrier hired by the distributee. Where a
common or contract carrier hired by
the distributee will transport explosive
materials from the distributor to a
holder of a limited permit:
(A) The limited permittee must,
prior to delivery of the explosive materials, complete the appropriate section
on Form 5400.4, affix to the Form 5400.4
one of the six IPECs he has been issued,
and provide the form to the distributor
in person or by mail.
(B) Before the delivery at the distributor’s premises to the common or
contract carrier who will transport explosive materials to the holder of a
limited permit, the distributor must:
(1) 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
(2) 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.
(7) A licensee or permittee disposing
of surplus stock may sell or distribute
commercially
manufactured
black
powder in quantities of 50 pounds or
less to a holder of a limited permit,
nonlicensee, or nonpermittee if the
black powder is intended to be used
solely for sporting, recreational, or cultural purposes in antique firearms as
defined in 18 U.S.C. 921(a)(16), or in antique devices as exempted from the
term ‘‘destructive device’’ in 18 U.S.C.
921(a)(4).
(Approved by the Office of Management and
Budget under control number 1140–0075)
[ATF No. 1, 68 FR 13788, Mar. 20, 2003, as
amended by ATF No. 2, 68 FR 53513, Sept. 11,
2003; ATF 2017R–21, 84 FR 13799, Apr. 8, 2019]

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