THE ORANGE BOOK

ATF: Explosives
Law
and
Regulations

BUREAU OF ALCOHOL, TOBACCO, AND FIREARMS *
DEPARTMENT OF THE TREASURY - ATF P 5400.7(11/82)
(Editor's Note: The Orange Book is currently being re-written by the ATF
to bring it up to date. The fee structure mentioned for user permits has
changed. The new information is listed on current applications.)

Chapter
40 - Importation, Manufacture, Distribution and Storage of Explosive
Materials (18 U.S.C.)

Subject
Index to Commerce in Explosives (Part 55)

Subpart
A - Introduction

Subpart
B - Definitions

Subpart
C - Administrative and Miscellaneous Provisions

Subpart
D - Licenses and Permits

Subpart
E - Licenses and Permit Proceedings

Subpart
F - Conduct of Business or Operations

Subpart
G - Records and Reports

Subpart
H - Exemptions

Subpart
I - Unlawful Acts, Penalties, Seizures, and Forfeitures

Subpart
J - Marking of Plastic Explosives

Subpart
K - Storage

§
55.218 - Table of distances for storage of explosive materials

§ 55.219 - Table of distances for storage of low
explosives

§
55.220 - Table of separation distances of ammonium nitrate and
blasting agents from explosives or blasting agents

§
55.221 - Requirements for special fireworks, pyrotechnic compositions,
and explosive materials used in assembling fireworks

§
55.222 - Table of distances between fireworks process buildings and
between fireworks process and fireworks nonprocess buildings

§
55.223 - Table of distances between fireworks process buildings and
other specified areas

§
55.224 - Table of distances for the storage of special fireworks
(except bulk salutes).

Federal
Explosives Storage Requirements

Types
of Storage

Common
Housekeeping /ConstructionRequirements

Type
1

Type
2

Type
3

Type
4

Type
5

Questions
and Answers

ATF
Explosives Rulings and Procedures

EXPLOSIVES
LICENSE AND PERMIT NUMBERING SYSTEM

BASIC
EXPLOSIVES DEALER'S AND USER'S
GUIDE TO FEDERAL EXPLOSIVES REGULATION

AUTHORITY. 18 U.S.C. 847. SOURCE: TD. ATF-87, 46 FR 40384, Aug. 7, 1981,
unless otherwise noted.

GENERAL INFORMATION

EFFECT OF TITLE XI ON THE FIREWORKS INDUSTRY

[CAUTION! This Item Discusses the Federal "Point of View," Only!
Please Contact Your State l Local Authority For Any Additional Requirements!]

Title XI of the Organized Crime Control Act of 1970 (18 U.S.C. Chapter 40)
establishes controls over explosive materials, including black powder and other
pyrotechnic compositions commonly used in fireworks. Part 55 of Title 27, Code
of Federal Regulations (CFR), contains the regulations which implement Title XI.
§
55.141(a)(7) exempts "the importation and distribution of fireworks
classified as Class C explosives and generally known as 'common fireworks,' and
other Class C explosives, as described by U.S. Department of Transportation
regulations in 49 CFR 173 .100(p),(r),(t),(u), and (x)."

§
55.141(a)(7) does not exempt "special fireworks" (often referred to as
"display fireworks") which are classified by the Department of Transportation as
Class "B" explosives. The exemption applies only to "common fireworks" in a
finished state classified by the Department of Transportation as Class "C"
explosives (49 CFR § 173.100).

With Respect to Fireworks ... Who Needs a License?

Manufacturers of black powder;

Manufacturers of any other explosive material used in manufacturing
"special fireworks" (Class "B" explosives) or "common fireworks" (Class "C"
explosives); and

Importers of, or dealers in, "special fireworks."

With Respect to Fireworks ... Who Needs a Permit?

A person acquiring or transporting "special fireworks" interstate for his
own use and not for resale. [Agencies of the United States or of any State or
political subdivisions thereof are exempt from permit requirements.]; and

A person, other than a licensee, acquiring or transporting explosive
materials interstate for use in manufacturing "special fireworks" or "common
fireworks.

With Respect to Fireworks ... Who May Not Need a License or Permit?

Frequently, persons contracting for display fireworks (such as would be
appropriate for Fourth of July observances) from an out-of-State dealer receive
a total service, including the services of a pyrotechnician who transports
display fireworks in interstate commerce to the site of the display and conducts
or supervises the display. In these instances, the customers purchase the
dealer's services rather than the explosive materials themselves, and the cost
of the services includes the dealer's expense in providing the fireworks
utilized. When business is transacted in this manner, the customers purchasing
and receiving the services need not obtain Federal licenses or permits since
they are not actually acquiring explosive materials outside their States of
residence, and they are not receiving such materials or causing them to be
transported in interstate commerce. If the dealer furnishing the services is a
licensee, his interstate transportation of explosive materials to the display
sites would be conduct authorized by his license.

With Respect to Fireworks ... Types of Permits

User permit: Allows a permittee to acquire, transport, ship and receive
"special fireworks" in interstate or foreign commerce for his own use and not
for resale. This permit is issued at a cost of $20 for a one-year period and
is renewable at a cost of $10 for a three-year period.

User-limited permit: Identical to the user permit but issued for a single
transaction, only. The fee is $2; the permit is nonrenewable. A new permit
must be obtained for each transaction. This type of permit is advantageous to
civic and veterans organizations who wish to conduct a single display such as
on the Fourth of July.

With Respect to Fireworks ... Storage

The law prohibits any person from storing any explosive materials in a manner
not in conformity with the regulations promulgated by the Secretary of the
Treasury (1 8 U.S.C. 842(J)).
Pursuant to this section, the Secretary has prescribed storage regulations in 27
CFR Part 55, Subpart K. Since display fireworks are not exempt from regulations,
they must be stored in conformity with the regulations. Display fireworks
generally contain Perchlorate mixture explosives, potassium chlorate base
explosive mixtures, and black powder, which are entered on the List of Explosive
Materials with numerous others. (The List is annually compiled and readily
available without charge from the address set out in §
55.23.)

Display fireworks should be stored as low explosives in facilities meeting
the requirements for type 4 storage facilities, prescribed by 27
CFR § 55.210 unless they contain other classes of explosives.

The manufacturer of exempt or nonexempt fireworks having stocks of explosive
materials on hand to be used in the manufacture of fireworks must store his
stocks in conformity with applicable storage requirements. In storage facilities
where weight restrictions apply, the net weight of the explosive materials may
be used. To determine the actual weight of the explosive materials, it may be
necessary to contact their manufacturers.

EXPLOSIVES LICENSE AND PERMIT NUMBERING SYSTEM

The Basic Number of your Federal explosives license or permit consists of
digits 2 and 3, and 11 through 15.

This basic number may be useful for letterheads, business cards, invoices,
records, etc. (unless you are a manufacturer-limited licensee, or a userlimited
permittee, as these licenses/permits are nonrenewable).

DIGIT STANDS FOR
1 Alcohol, Tobacco and Firearms Region
2,3
State-Alpha Designation
4,5,6 County of the State
7,8 Type of license or
permit
9,10 Expiration date code
11-15 Sequence number of license or
permit

EXAMPLE:

5 TX 057 29 2E 00002

5 = Southwest Region
TX = Texas
057 = Dallas County
29 = Dealer
in Black Powder
2E = May 1992 Expiration Date
00002 = Sequence Number

BASIC EXPLOSIVES DEALER'S AND USER'S
GUIDE TO
FEDERAL EXPLOSIVES REGULATION

EXPLOSIVES MAY NOT BE DISTRIBUTED BY LICENSEES TO ANY PERSON WHO:

Is under 21 years of age.

Has been convicted of a crime punishable by imprisonment for a term
exceeding one year.

Is under indictment for a crime punishable by imprisonment for a term
exceeding one year.

Is an unlawful user of, or addicted to, marijuana or any depressant or
stimulant drug or narcotic drug (as these terms are defined in the
Controlled Substances Act; 21 U.S.C. 802).

Has been adjudicated as a mental defective or has been committed to a
mental institution.

Is a fugitive from justice.

May not lawfully purchase, possess or use explosives under State or
local laws applicable at the place of distribution.

DEALERS IN EXPLOSIVES MUST

Have a Federal license.

Have proper storage facilities.

Keep accurate and complete records.

Verify that each out-of-State buyer has a Federal permit.

Have nonlicensees/nonpermittees execute Forms 5400.4, "Explosives
Transaction Record."

Have employees of buyers or carriers to whom delivery is made at a
distributor's premises execute Forms 5400.8, "Explosives Delivery Record."

Verify buyers' identities.

USERS OF EXPLOSIVES-PERMITTEES AND NONPERMITTEES:
Federal permits are
required of those who purchase explosives from outside their State of
residence and/or transport them interstate. The permittee must keep complete
and accurate records of his acquisitions and dispositions of explosives.