[Title 27 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2005 Edition]
[From the U.S. Government Printing Office]



[[Page i]]



          27


          Part 400 to End

                         Revised as of April 1, 2005


          Alcohol, Tobacco Products, and Firearms
          
          


________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of April 1, 2005
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

[[Page ii]]

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 27:
          Chapter II--Bureau of Alcohol, Tobacco, Firearms, 
          and Explosives, Department of Justice                      3
  Finding Aids:
      Material Approved for Incorporation by Reference........     181
      Table of CFR Titles and Chapters........................     183
      Alphabetical List of Agencies Appearing in the CFR......     201
      List of CFR Sections Affected...........................     211

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                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 27 CFR 447.1 refers 
                       to title 27, part 447, 
                       section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
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    To determine whether a Code volume has been amended since its 
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EFFECTIVE AND EXPIRATION DATES

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OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
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INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
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This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
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the revision dates of the 50 CFR titles.

[[Page vii]]


REPUBLICATION OF MATERIAL

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                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

April 1, 2005.

[[Page ix]]



                               THIS TITLE

    Title 27--Alcohol, Tobacco Products, and Firearms is composed of two 
volumes, parts 1-399 and part 400 to end. The contents of these volumes 
represent all current regulations issued by the Alcohol and Tobacco Tax 
and Trade Bureau, Department of the Treasury, and the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives, Department of Justice, as of April 1, 
2005.

    For this volume, Carol A. Conroy was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page 1]]



            TITLE 27--ALCOHOL, TOBACCO PRODUCTS, AND FIREARMS




                  (This book contains part 400 to End)

  --------------------------------------------------------------------
                                                                    Part

chapter II--Bureau of Alcohol, Tobacco, Firearms, and 
  Explosives, Department of Justice.........................         447


Abbreviations Used in This Chapter:
    ATF = Alcohol, Tobacco and Firearms.
    TD = Treasury Decision.
     TTB = Alcohol and Tobacco Tax and Trade Bureau.

[[Page 3]]



   CHAPTER II--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES, 
                          DEPARTMENT OF JUSTICE




  --------------------------------------------------------------------

                         SUBCHAPTER A [RESERVED]
                  SUBCHAPTER B--FIREARMS AND AMMUNITION
Part                                                                Page
400-446         [Reserved]
447             Importation of arms, ammunition and 
                    implements of war.......................           5
478             Commerce in firearms and ammunition.........          18
479             Machine guns, destructive devices, and 
                    certain other firearms..................          86
                        SUBCHAPTER C--EXPLOSIVES
555             Commerce in Explosives......................         115
 SUBCHAPTER D--MISCELLANEOUS REGULATIONS RELATING TO ALCOHOL AND TOBACCO
646             Contraband cigarettes.......................         176

[[Page 5]]



                         SUBCHAPTER A [RESERVED]





                  SUBCHAPTER B_FIREARMS AND AMMUNITION



                        PARTS 400-446 [RESERVED]



PART 447_IMPORTATION OF ARMS, AMMUNITION AND IMPLEMENTS OF WAR--Table 
of Contents




                             Subpart A_Scope

Sec.
447.1 General.
447.2 Relation to other laws and regulations.

                          Subpart B_Definitions

447.11 Meaning of terms.

                Subpart C_The U.S. Munitions Import List

447.21 The U.S. Munitions Import List.
447.22 Forgings, castings, and machined bodies.

                         Subpart D_Registration

447.31 Registration requirement.
447.32 Application for registration and refund of fee.
447.33 Notification of changes in information furnished by registrants.
447.34 Maintenance of records by persons required to register as 
          importers of Import List articles.
447.35 Forms prescribed.

                            Subpart E_Permits

447.41 Permit requirement.
447.42 Application for permit.
447.43 Terms of permit.
447.44 Permit denial, revocation or suspension.
447.45 Importation.
447.46 Articles in transit.

                   Subpart F_Miscellaneous Provisions

447.51 Import certification and delivery verification.
447.52 Import restrictions applicable to certain countries.
447.53 Exemptions.
447.54 Administrative procedures inapplicable.
447.55 Departments of State and Defense consulted.
447.56 Authority of Customs officers.
447.57 U.S. military defense articles.
447.58 Delegations of the Director.

              Subpart G_Penalties, Seizures and Forfeitures

447.61 Unlawful importation.
447.62 False statements or concealment of facts.
447.63 Seizure and forfeiture.

    Authority: 22 U.S.C. 2778.

    Source: T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, unless otherwise 
noted. Redesignated by T.D. ATF-487, 68 FR 3747, Jan. 24, 2003.

    Editorial Note: Nomenclature changes to part 447 appear at 68 FR 
3748, Jan. 24, 2003.



                             Subpart A_Scope



Sec. 447.1  General.

    The regulations in this part relate to that portion of Section 38, 
Arms Export Control Act of 1976, as amended, which is concerned with the 
importation of arms, ammunition and implements of war. This part 
contains the U.S. Munitions Import List and includes procedural and 
administrative requirements and provisions relating to registration of 
importers, permits, articles in transit, import certification, delivery 
verification, import restrictions applicable to certain countries, 
exemptions, U.S. military firearms or ammunition, penalties, seizures, 
and forfeitures. All designations and changes in designation of articles 
subject to import control under Section 414 of the Mutual Security Act 
of 1954, as amended, have the concurrence of the Secretary of State and 
the Secretary of Defense.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42158, Oct. 18, 1985]



Sec. 447.2  Relation to other laws and regulations.

    (a) All of those items on the U.S. Munitions Import List (see Sec. 
447.21) which are ``firearms'' or ``ammunition'' as defined in 18 U.S.C. 
921(a) are subject to the interstate and foreign commerce controls 
contained in Chapter 44 of Title 18 U.S.C. and 27 CFR Part 478 and if 
they are ``firearms'' within the definition set out in 26 U.S.C. 5845(a) 
are

[[Page 6]]

also subject to the provisions of 27 CFR Part 479. Any person engaged in 
the business of importing firearms or ammunition as defined in 18 U.S.C. 
921(a) must obtain a license under the provisions of 27 CFR Part 478, 
and if he imports firearms which fall within the definition of 26 U.S.C. 
5845(a) must also register and pay special tax pursuant to the 
provisions of 27 CFR Part 479. Such licensing, registration and special 
tax requirements are in addition to registration under subpart D of this 
part.
    (b) The permit procedures of subpart E of this part are applicable 
to all importations of articles on the U.S. Munitions Import List not 
subject to controls under 27 CFR Part 478 or 479. U.S. Munitions Import 
List articles subject to controls under 27 CFR Part 478 or 27 CFR Part 
479 are subject to the import permit procedures of those regulations if 
imported into the United States (within the meaning of 27 CFR Parts 478 
and 479).
    (c) Articles on the U.S. Munitions Import List imported for the 
United States or any State or political subdivision thereof are exempt 
from the import controls of 27 CFR Part 478 but are not exempt from 
control under Section 38, Arms Export Control Act of 1976, unless 
imported by the United States or any agency thereof. All such 
importations not imported by the United States or any agency thereof 
shall be subject to the import permit procedures of subpart E of this 
part.
    (d) For provisions requiring the registration of persons engaged in 
the business of brokering activities with respect to the importation of 
any defense article or defense service, see Department of State 
regulations in 22 CFR part 129.

[T.D. ATF-215, 50 FR 42158, Oct. 18, 1985, as amended by T.D. ATF-426, 
65 FR 38197, June 20, 2000]



                          Subpart B_Definitions



Sec. 447.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meanings ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words imparting the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude other 
things not enumerated which are in the same general class or are 
otherwise within the scope thereof.
    Appropriate ATF officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) specified by ATF Order 1130.34, 
Delegation of the Director's Authorities in 27 CFR Part 447, Importation 
of Arms, Ammunition and Implements of War.
    Article. Any of the arms, ammunition, and implements of war 
enumerated in the U.S. Munitions Import List.
    Bureau. Bureau of Alcohol, Tobacco and Firearms, the Department of 
the Treasury.
    Carbine. A short-barrelled rifle whose barrel is generally not 
longer than 22 inches and is characterized by light weight.
    CFR. The Code of Federal Regulations.
    Chemical agent. A substance useful in war which, by its ordinary and 
direct chemical action, produces a powerful physiological effect.
    Defense articles. Any item designated in Sec. 447.21 or Sec. 
447.22. This term includes models, mockups, and other such items which 
reveal technical data directly relating to Sec. 447.21 or Sec. 447.22. 
For purposes of Category XXII, any item enumerated on the U.S. Munitions 
List (22 CFR Part 121).
    Defense services. (a) The furnishing of assistance, including 
training, to foreign persons in the design, engineering, development, 
production, processing, manufacture, use, operation, overhaul, repair, 
maintenance, modification, or reconstruction of defense articles, 
whether in the United States or abroad; or
    (b) The furnishing to foreign persons of any technical data, whether 
in the United States or abroad.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of the Treasury, Washington, DC 20226.
    Executed under the penalties of perjury. Signed with the prescribed 
declaration

[[Page 7]]

under the penalties of perjury as provided on or with respect to the 
application, form, or other document or, where no form of declaration is 
prescribed, with the declaration: ``I declare under the penalties of 
perjury that this ------------ (insert type of document such as 
statement, certificate, application, or other document), including the 
documents submitted in support thereof, has been examined by me and, to 
best of my knowledge and belief, is true, correct, and complete.''
    Firearms. A weapon, and all components and parts therefor, not over 
.50 caliber which will or is designed to or may be readily converted to 
expel a projectile by the action of an explosive, but shall not include 
BB and pellet guns, and muzzle loading (black powder) firearms 
(including any firearm with a matchlock, flintlock, percussion cap, or 
similar type of ignition system) or firearms covered by Category I(a) 
established to have been manufactured in or before 1898.
    Import or importation. Bringing into the United States from a 
foreign country any of the articles on the Import List, but shall not 
include intransit, temporary import or temporary export transactions 
subject to Department of State controls under Title 22, Code of Federal 
Regulations.
    Import List. The list of articles contained in Sec. 447.21 and 
identified therein as ``The U.S. Munitions Import List''.
    Machinegun. A ``machinegun'', ``machine pistol'', ``submachinegun'', 
or ``automatic rifle'' is a firearm originally designed to fire, or 
capable of being fired fully automatically by a single pull of the 
trigger.
    Permit. The same as ``license'' for purposes of 22 U.S.C. 1934(c).
    Person. A partnership, company, association, or corporation, as well 
as a natural person.
    Pistol. A hand-operated firearm having a chamber integral with, or 
permanently aligned with, the bore.
    Revolver. A hand-operated firearm with a revolving cylinder 
containing chambers for individual cartridges.
    Rifle. A shoulder firearm discharging bullets through a rifled 
barrel at least 16 inches in length, including combination and drilling 
guns.
    Sporting type sight including optical. A telescopic sight suitable 
for daylight use on a rifle, shotgun, pistol, or revolver for hunting or 
target shooting.
    This chapter. Title 27, Code of Federal Regulations, Chapter II (27 
CFR Chapter II).
    United States. When used in the geographical sense, includes the 
several States, the Commonwealth of Puerto Rico, the insular possessions 
of the United States, the District of Columbia, and any territory over 
which the United States exercises any powers of administration, 
legislation, and jurisdiction.

(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as 
amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control 
Act (22 U.S.C. 2778, 90 Stat. 744))

[T.D. ATF-48, 43 FR 13535, Mar. 31, 1978; 44 FR 55840, Sept. 28, 1979, 
as amended by T.D. ATF-202, 50 FR 14382, Apr. 12, 1985; T.D. ATF-215, 50 
FR 42158, Oct. 18, 1985; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



                Subpart C_The U.S. Munitions Import List



Sec. 447.21  The U.S. Munitions Import List.

    The U.S. Munitions List compiled by the Department of State, Office 
of Defense Trade Controls, and published at 22 CFR 121.1, with the 
deletions indicated, has been adopted as an enumeration of the defense 
articles subject to controls under this part. The expurgated list, set 
out below, shall, for the purposes of this part, be known as the U.S. 
Munitions Import List:

                     The U.S. Munitions Import List

                          category i--firearms

    (a) Nonautomatic and semiautomatic firearms, to caliber .50 
inclusive, combat shotguns, and shotguns with barrels less than 18 
inches in length, and all components and parts for such firearms.
    (b) Automatic firearms and all components and parts for such 
firearms to caliber .50 inclusive.
    (c) Insurgency-counterinsurgency type firearms of other weapons 
having a special military application (e.g. close assault weapons 
systems) regardless of caliber and all components and parts for such 
firearms.
    (d) Firearms silencers and suppressors, including flash suppressors.

[[Page 8]]

    (e) Riflescopes manufactured to military specifications and 
specifically designed or modified components therefor.

    Note: Rifles, carbines, revolvers, and pistols, to caliber .50 
inclusive, combat shotguns, and shotguns with barrels less than 18 
inches in length are included under Category I(a). Machineguns, 
submachineguns, machine pistols and fully automatic rifles to caliber 
.50 inclusive are included under Category I(b).

                    category ii--artillery projectors

    (a) Guns over caliber .50, howitzers, mortars, and recoiless rifles.
    (b) Military flamethrowers and projectors.
    (c) Components, parts, accessories, and attachments for the articles 
in paragraphs (a) and (b) of this category, including but not limited to 
mounts and carriages for these articles.

                        category iii--ammunition

    (a) Ammunition for the arms in Categories I and II of this section.
    (b) Components, parts, accessories, and attachments for articles in 
paragraph (a) of this category, including but not limited to cartridge 
cases, powder bags, bullets, jackets, cores, shells (excluding shotgun 
shells), projectiles, boosters, fuzes and components therefor, primers, 
and other detonating devices for such ammunition.
    (c) Ammunition belting and linking machines.
    (d) Ammunition manufacturing machines and ammunition loading 
machines (except handloading ones).

    Note: Cartridge and shell casings are included under Category III 
unless, prior to their importation, they have been rendered useless 
beyond the possibility of restoration for use as a cartridge or shell 
casing by means of heating, flame treatment, mangling, crushing, 
cutting, or popping.

   category iv--launch vehicles, guided missiles, ballistic missiles, 
                   rockets, torpedoes, bombs and mines

    (a) Rockets (including but not limited to meteorological and other 
sounding rockets), bombs, grenades, torpedoes, depth charges, land and 
naval mines, as well as launchers for such defense articles, and 
demolition blocks and blasting caps.
    (b) Launch vehicles and missile and anti-missile systems including 
but not limited to guided, tactical and strategic missiles, launchers, 
and systems.
    (c) Apparatus, devices, and materials for the handling, control, 
activation, monitoring, detection, protection, discharge, or detonation 
of the articles in paragraphs (a) and (b) of this category. Articles in 
this category include, but are not limited to, the following: Fuses and 
components for the items in this category, bomb racks and shackles, bomb 
shackle release units, bomb ejectors, torpedo tubes, torpedo and guided 
missile boosters, guidance system equipment and parts, launching racks 
and projectors, pistols (exploders), igniters, fuze arming devices, 
intervalometers, guided missile launchers and specialized handling 
equipment, and hardened missile launching facilities.
    (d) Missile and space vehicle powerplants.
    (e) Military explosive excavating devices.
    (f) Ablative materials fabricated or semifabricated from advanced 
composites (e.g., silica, graphite, carbon, carbon/carbon, and boron 
filaments) for the articles in this category that are derived directly 
from or specifically developed or modified for defense articles.
    (g) Non/nuclear warheads for rockets and guided missiles.
    (h) All specifically designed components or modified components, 
parts, accessories, attachments, and associated equipment for the 
articles in this category.

    Note:  Military demolition blocks and blasting caps referred to in 
Category IV(a) do not include the following articles:
    (a) Electric squibs.
    (b) No. 6 and No. 8 blasting caps, including electric ones.
    (c) Delay electric blasting caps (including No. 6 and No. 8 
millisecond ones).
    (d) Seismograph electric blasting caps (including SSS, Static-
Master, Vibrocap SR, and SEISMO SR).
    (e) Oil well perforating devices.
    Note: Category V of ``Munitions List'' deleted as inapplicable to 
imports.

         category vi--vessels of war and special naval equipment

    (a) Warships, amphibious warfare vessels, landing craft, mine 
warfare vessels, patrol vessels, auxiliary vessels and service craft, 
experimental types of naval ships and any vessels specifically designed 
or modified for military purposes.
    (b) Turrets and gun mounts, arresting gear, special weapons systems, 
protective systems, submarine storage batteries, catapults and other 
components, parts, attachments, and accessories specifically designed or 
modified for combatant vessels.
    (c) Mine sweeping equipment, components, parts, attachments and 
accessories specifically designed or modified therefor.
    (d) Harbor entrance detection devices (magnetic, pressure, and 
acoustic ones) and controls and components therefor.
    (e) Naval nuclear propulsion plants, their land prototypes and 
special facilities for their construction, support and maintenance. This 
includes any machinery, device, component, or equipment specifically 
developed or designed or modified for use in such plants or facilities.


[[Page 9]]


    Note: The term ``vessels of war'' includes, but is not limited to 
the following:
    (a) Combatant vessels:
    (1) Warships (including nuclear-powered versions):
    (i) Aircraft carriers (CV, CVN)
    (ii) Battleships (BB)
    (iii) Cruisers (CA, CG, CGN)
    (iv) Destroyers (DD, DDG)
    (v) Frigates (FF, FFG)
    (vi) Submarines (SS, SSN, SSBN, SSG, SSAG).
    (2) Other Combatant Classifications:
    (i) Patrol Combatants (PC, PHM)
    (ii) Amphibious Helicopter/Landing Craft Carriers (LHA, LPD, LPH)
    (iii) Amphibious Landing Craft Carriers (LKA, LPA, LSD, LST)
    (iv) Amphibious Command Ships (LCC)
    (v) Mine Warfare Ships (MSO).
    (b) Auxiliaries:
    (1) Mobile Logistics Support:
    (i) Under way Replenishment (AD, AF, AFS, AO, AOE, AOR)
    (ii) Material Support (AD, AR, AS).
    (2) Support Ships:
    (i) Fleet Support Ships (ARS, ASR, ATA, ATF, ATS)
    (ii) Other Auxiliaries (AG, AGDS, AGF, AGM, AGOR, AGOS, AGS, AH, AK, 
AKR, AOG, AOT, AP, APB, ARC, ARL, AVM, AVT).
    (c) Combatant Craft:
    (1) Patrol Craft:
    (i) Coastal Patrol Combatants (PB, PCF, PCH, PTF)
    (ii) River, Roadstead Craft (ATC, PBR).
    (2) Amphibious Warfare Craft:
    (i) Landing Craft (AALC, LCAC, LCM, LCPL, LCPR, LCU, LWT, SLWT)
    (ii) Special Warfare Craft (LSSC, MSSC, SDV, SWCL, SWCM).
    (3) Mine Warfare Craft:
    (i) Mine Countermeasures Craft (MSB, MSD, MSI, MSM, MSR).
    (d) Support and Service Craft:
    (1) Tugs (YTB, YTL, YTM)
    (2) Tankers (YO, YOG, YW)
    (3) Lighters (YC, YCF, YCV, YF, YFN, YFNB, YFNX, YFR, YFRN, YFU, YG, 
YGN, YOGN, YON, YOS, YSR, YWN)
    (4) Floating Dry Docks (AFDB, AFDL, AFDM, ARD, ARDM, YFD)
    (5) Miscellaneous (APL, DSRV, DSV, IX, NR, YAG, YD, YDT, YFB, YFND, 
YEP, YFRT, YHLC, YM, YNG, YP, YPD, YR, YRB, YRBN, YRDH, YRDM, YRR, YRST, 
YSD).
    (e) Coast Guard Patrol and Service Vessels and Craft:
    (1) Coast Guard Cutters (CGC, WHEC, WMEC)
    (2) Patrol Craft (WPB)
    (3) Icebreakers (WAGB)
    (4) Oceanography Vessels (WAGO)
    (5) Special Vessels (WIX)
    (6) Buoy Tenders (WLB, WLM, WLI, WLR, WLIC)
    (7) Tugs (WYTM, WYTL)
    (8) Light Ships (WLV).

                category vii--tanks and military vehicles

    (a) Military type armed or armored vehicles, military railway 
trains, and vehicles specifically designed or modified to accommodate 
mountings for arms or other specialized military equipment or fitted 
with such items.
    (b) Military tanks, combat engineer vehicles, bridge launching 
vehicles, halftracks and gun carriers.
    (c) Self-propelled guns and howitzers.

    Note: Category VII (d) and (e) of ``Munitions List'' deleted as 
inapplicable to imports.
    (f) Amphibious vehicles.
    (g) Engines specifically designed or modified for the vehicles in 
paragraphs (a), (b), (c), and (f) of this category.
    (h) All specifically designed or modified components and parts, 
accessories, attachments, and associated equipment for the articles in 
this category, including but not limited to military bridging and deep 
water fording kits.

    Note: An ``amphibious vehicle'' in Category VII(f) is an automotive 
vehicle or chassis which embodies all-wheel drive, which is equipped to 
meet special military requirements, and which has sealed electrical 
systems and adaptation features for deep water fording.

      category viii--aircraft, spacecraft, and associated equipment

    (a) Aircraft, including but not limited to helicopters, non-
expansive balloons, drones and lighter-than-air aircraft, which are 
specifically designed, modified, or equipped for military purposes. This 
includes but is not limited to the following military purposes: gunnery, 
bombing, rocket or missile launching, electronic and other surveillance, 
reconnaissance, refueling, aerial mapping, military liaison, cargo 
carrying or dropping, personnel dropping, airborne warning and control, 
and military training.

    Note: Category VIII (b) through (j) and Categories IX, X, XI, XII 
and XIII of ``Munitions List'' deleted as inapplicable to imports.
    Note: In Category VIII, ``aircraft'' means aircraft designed, 
modified, or equipped for a military purpose, including aircraft 
described as ``demilitarized.'' All aircraft bearing an original 
military designation are included in Category VIII. However, the 
following aircraft are not so included so long as they have not been 
specifically equipped, reequipped, or modified for military operations:
    (a) Cargo aircraft bearing ``C'' designations and numbered C-45 
through C-118 inclusive,

[[Page 10]]

and C-121 through C-125 inclusive, and C-131, using reciprocating 
engines only.
    (b) Trainer aircraft bearing ``T'' designations and using 
reciprocating engines or turboprop engines with less than 600 horsepower 
(s.h.p.).
    (c) Utility aircraft bearing ``U'' designations and using 
reciprocating engines only.
    (d) All liaison aircraft bearing an ``L'' designation.
    (e) All observation aircraft bearing ``O'' designations and using 
reciprocating engines.

   category xiv--toxicological agents and equipment and radiological 
                                equipment

    (a) Chemical agents, including but not limited to lung irritants, 
vesicants, lachrymators, and tear gases (except tear gas formulations 
containing 1% or less CN or CS), sternutators and irritant smoke, and 
nerve gases and incapacitating agents.
    (b) Biological agents.
    (c) Equipment for dissemination, detection, and identification of, 
and defense against, the articles in paragraphs (a) and (b) of this 
category.
    (d) Nuclear radiation detection and measuring devices manufactured 
to military specification.
    (e) Components, parts, accessories, attachments, and associated 
equipment specifically designed or modified for the articles in 
paragraphs (c) and (d) of this category.

    Note:  A chemical agent in Category XIV(a) is a substance having 
military application which by its ordinary and direct chemical action 
produces a powerful physiological effect. The term ``chemical agent'' 
includes, but is not limited to, the following chemical compounds:
    (a) Lung irritants:
    (1) Diphenylcyanoarsine (DC).
    (2) Fluorine (but not fluorene).
    (3) Trichloronitro methane (chloropicrin PS).
    (b) Vesicants:
    (1) B-Chlorovinyldichloroarsine (Lewisite, L).
    (2) Bis(dichlorethyl) sulphide (Mustard Gas, HD or H).
    (3) Ethyldichloroarsine (ED).
    (4) Methyldichloroarsine (MD).
    (c) Lachrymators and tear gases:
    (1) A-Brombenzyl cyanide (BBC).
    (2) Chloroacetophenone (CN).
    (3) Dibromodimethyl ether.
    (4) Dichlorodimethyl ether (ClCi).
    (5) Ethyldibromoarsine.
    (6) Phenylcarbylamine chloride.
    (7) Tear gas solutions (CNB and CNS).
    (8) Tear gas orthochlorobenzalmalononitrile (CS).
    (d) Sternutators and irritant smokes:
    (1) Diphenylamine chloroarsine (Adamsite, DM).
    (2) Diphenylchloroarsine (BA).
    (3) Liquid pepper.
    (e) Nerve agents, gases, and aerosols. These are toxic compounds 
which affect the nervous system, such as:
    (1) Dimethylaminoethoxycyanophosphine oxide (GA).
    (2) Methylisopropoxyfluorophosphine oxide (GB).
    (3) Methylpinacolyloxyfluoriphosphine oxide (GD).
    (f) Antiplant chemicals, such as: Butyl 2-chloro-4-
fluorophenoxyacetate (LNF).

                         category xv [Reserved]

         category xvi--nuclear weapons design and test equipment

    (a) Any article, material, equipment, or device, which is 
specifically designed or modified for use in the design, development, or 
fabrication of nuclear weapons or nuclear explosive devices.
    (b) Any article, material, equipment, or device, which is 
specifically designed or modified for use in the devising, carrying out, 
or evaluating of nuclear weapons tests or any other nuclear explosions, 
except such items as are in normal commercial use for other purposes.

    Note: Categories XVII, XVIII, and XIX of ``Munitions List'' deleted 
as inapplicable to imports.

category xx--submersible vessels, oceanographic and associated equipment

    (a) Submersible vessels, manned and unmanned, designed or modified 
for military purposes or having independent capability to maneuver 
vertically or horizontally at depths below 1,000 feet, or powered by 
nuclear propulsion plants.
    (b) Submersible vessels, manned or unmanned, designed or modified in 
whole or in part from technology developed by or for the U.S. Armed 
Forces.
    (c) Any of the articles in Category VI and elsewhere in this part 
specifically designed or modified for use with submersible vessels, and 
oceanographic or associated equipment assigned a military designation.
    (d) Equipment, components, parts, accessories, and attachments 
specifically designed for any of the articles in paragraphs (a) and (b) 
of this category.

                  category xxi--miscellaneous articles

    Any article not specifically enumerated in the other categories of 
the U.S. Munitions List which has substantial military applicability and 
which has been specifically designed or modified for military purposes. 
The decision on whether any article may be included in this category 
shall be made by the Director, Office of Defense Trade Controls,

[[Page 11]]

Department of State, with the concurrence of the Department of Defense.

                       category xxii--south africa

    (a) Defense articles enumerated on the U.S. Munitions List (22 CFR 
Part 121).
    (b) Technical data relating to defense articles enumerated on the 
U.S. Munitions List.

    Note: This category is applicable only to South Africa.
    Note: ``Technical data'' means, for purposes of this category:
    (1) Classified information relating to defense articles and defense 
services;
    (2) Information covered by an invention secrecy order;
    (3) Information which is directly related to the design, 
engineering, development, production, processing, manufacture, use, 
operation, overhaul, repair, maintenance, modification, or 
reconstruction of defense articles. This includes, for example, 
information in the form of blueprints, drawings, photographs, plans, 
instructions, computer software and documentation. This also includes 
information which advances the state of the art of articles on the U.S. 
Munitions List. This does not include information concerning general 
scientific, mathematical or engineering principles.

[T.D. ATF-215, 50 FR 42158, Oct. 18, 1985; 50 FR 46647, Nov. 12, 1985, 
as amended by T.D. ATF-426, 65 FR 38197, June 20, 2000]



Sec. 447.22  Forgings, castings, and machined bodies.

    Articles on the U.S. Munitions Import List include articles in a 
partially completed state (such as forgings, castings, extrusions, and 
machined bodies) which have reached a stage in manufacture where they 
are clearly identifiable as defense articles. If the end-item is an 
article on the U.S. Munitions Import List, (including components, 
accessories, attachments and parts) then the particular forging, 
casting, extrusion, machined body, etc., is considered a defense article 
subject to the controls of this part, except for such items as are in 
normal commercial use.

[T.D. ATF-215, 50 FR 42160, Oct. 18, 1985]



                         Subpart D_Registration



Sec. 447.31  Registration requirement.

    Persons engaged in the business, in the United States, of importing 
articles enumerated on the U.S. Munitions Import List must register by 
making an application on ATF Form 4587.

[T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



Sec. 447.32  Application for registration and refund of fee.

    (a) Application for registration must be filed on ATF Form 4587 and 
must be accompanied by the registration fee at the rate prescribed in 
this section. The appropriate ATF officer will approve the application 
and return the original to the applicant.
    (b) Registration may be effected for periods of from 1 to 5 years at 
the option of the registrant by identifying on Form 4587 the period of 
registration desired. The registration fees are as follows:

1 year..........................................................    $250
2 years.........................................................     500
3 years.........................................................     700
4 years.........................................................     850
5 years.........................................................   1,000
 

    (c) Fees paid in advance for whole future years of a multiple year 
registration will be refunded upon request if the registrant ceases to 
engage in importing articles on the U.S. Munitions Import List. A 
request for a refund must be submitted to the appropriate ATF officer at 
the Bureau of Alcohol, Tobacco and Firearms, Washington, DC 20226, prior 
to the beginning of any year for which a refund is claimed.

(Approved by the Office of Management and Budget under control number 
1512-0021)

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42161, Oct. 18, 1985; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



Sec. 447.33  Notification of changes in information furnished by 
registrants.

    Registered persons shall notify the appropriate ATF officer in 
writing, in duplicate, of significant changes in the information set 
forth in their registration

(Approved by the Office of Management and Budget under control number 
1512-0021)

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42161, Oct. 18, 1985]

[[Page 12]]



Sec. 447.34  Maintenance of records by persons required to register 
as importers of Import List articles.

    (a) Registrants under this part engaged in the business of importing 
articles subject to controls under 27 CFR Parts 478 and 479 shall 
maintain records in accordance with the applicable provisions of those 
parts.
    (b) Registrants under this part engaged in importing articles on the 
U.S. Munitions Import List subject to the permit procedures of subpart E 
of this part must maintain for a period of 6 years records bearing on 
such articles imported, including records concerning their acquisition 
and disposition, including Forms 6 and 6A. The appropriate ATF officer 
may prescribe a longer or shorter period in individual cases as such 
officer deems necessary. See Sec. 478.129 of this chapter for articles 
subject to import control under part 478 of this chapter.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-215, 50 FR 42161, Oct. 18, 1985; T.D. 
ATF-426, 65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 
2002]



Sec. 447.35  Forms prescribed.

    (a) The appropriate ATF officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part. The 
form will be filed in accordance with the instructions for the form.
    (b) Forms may be requested from the ATF Distribution Center, P.O. 
Box 5950, Springfield, Virginia 22150-5950, or by accessing the ATF Web 
site http://www.atf.treas.gov/.

[T.D. ATF-92, 46 FR 46914, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5961, Feb. 27, 1987; T.D. ATF-426, 65 FR 38197, June 20, 2000; 
T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



                            Subpart E_Permits



Sec. 447.41  Permit requirement.

    (a) Articles on the U.S. Munitions Import List will not be imported 
into the United States except pursuant to a permit under this subpart. 
For articles subject to control under parts 478 or 479 of this chapter, 
a separate permit is not necessary.
    (b) Articles on the U.S. Munitions Import List intended for the 
United States or any State or political subdivision thereof, or the 
District of Columbia, which are exempt from import controls of 27 CFR 
478.115 shall not be imported into the United States, except by the 
United States or agency thereof, without first obtaining a permit under 
this subpart.
    (c) A permit is not required for the importation of--
    (1)(i) The U.S. Munitions Import List articles from Canada, except 
articles enumerated in Categories I, II, III, IV, VI(e), VIII(a), XVI, 
and XX; and
    (ii) Nuclear weapons strategic delivery systems and all specifically 
designed components, parts, accessories, attachments, and associated 
equipment thereof (see Category XXI); or
    (2) Minor components and parts for Category I(a) and I(b) firearms, 
except barrels, cylinders, receivers (frames) or complete breech 
mechanisms, when the total value does not exceed $100 wholesale in any 
single transaction.

[T.D. ATF-215, 50 FR 42161, Oct. 18, 1985, as amended by T.D. ATF-426, 
65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



Sec. 447.42  Application for permit.

    (a)(1) Persons required to obtain a permit as provided in Sec. 
447.41 must file a Form 6--Part I. The application must be signed and 
dated and must contain the information requested on the form, including:
    (i) The name, address, telephone number, license and registration 
number, if any (including expiration date) of the importer;
    (ii) The country from which the defense article is to be imported;
    (iii) The name and address of the foreign seller and foreign 
shipper;
    (iv) A description of the defense article to be imported, 
including--

[[Page 13]]

    (A) The name and address of the manufacturer;
    (B) The type (e.g., rifle, shotgun, pistol, revolver, aircraft, 
vessel, and in the case of ammunition only, ball, wadcutter, shot, 
etc.);
    (C) The caliber, gauge, or size;
    (D) The model;
    (E) The length of barrel, if any (in inches);
    (F) The overall length, if a firearm (in inches);
    (G) The serial number, if known;
    (H) Whether the defense article is new or used;
    (I) The quantity;
    (J) The unit cost of the firearm, firearm barrel, ammunition, or 
other defense article to be imported;
    (K) The category of U.S. Munitions Import List under which the 
article is regulated;
    (v) The specific purpose of importation, including final recipient 
information if different from the importer; and
    (vi) Certification of origin.
    (2)(i) If the appropriate ATF officer approves the application, such 
approved application will serve as the permit to import the defense 
article described therein, and importation of such defense article may 
continue to be made by the licensed/registered importer (if applicable) 
under the approved application (permit) during the period specified 
thereon. The appropriate ATF officer will furnish the approved 
application (permit) to the applicant and retain two copies thereof for 
administrative use.
    (ii) If the Director disapproves the application, the licensed/
registered importer (if applicable) will be notified of the basis for 
the disapproval.
    (b) For additional requirements relating to the importation of 
plastic explosives into the United States on or after April 24, 1997, 
see Sec. 555.183 of this title.

(Approved by the Office of Management and Budget under control number 
1512-0017)

[T.D. ATF-215, 50 FR 42161, Oct. 18, 1985, as amended by T.D. ATF-387, 
62 FR 8376, Feb. 25, 1997; T.D. ATF-426, 65 FR 38197, June 20, 2000;T.D. 
ATF-484, 67 FR 64526, Oct. 21, 2002]



Sec. 447.43  Terms of permit.

    (a) Import permits issued under this subpart are valid for one year 
from their issuance date unless a different period of validity is stated 
thereon. They are not transferable.
    (b) If shipment cannot be completed during the period of validity of 
the permit, another application must be submitted for permit to cover 
the unshipped balance. Such an application shall make reference to the 
previous permit and may include materials in addition to the unshipped 
balance.
    (c) No amendments or alteration of a permit may be made, except by 
the appropriate ATF officer.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-325, 57 
FR 29787, July 7, 1992; T.D. ATF-426, 65 FR 38197, June 20, 2000]



Sec. 447.44  Permit denial, revocation or suspension.

    (a) Import permits under this subpart may be denied, revoked, 
suspended or revised without prior notice whenever the appropriate ATF 
officer finds the proposed importation to be inconsistent with the 
purpose or in violation of section 38, Arms Export Control Act of 1976 
or the regulations in this part.
    (b) Whenever, after appropriate consideration, a permit application 
is denied or an outstanding permit is revoked, suspended, or revised, 
the applicant or permittee shall be promptly advised in writing of the 
appropriate ATF officer's decision and the reasons therefor.
    (c) Upon written request made within 30 days after receipt of an 
adverse decision, the applicant or permittee shall be accorded an 
opportunity to present additional information and to have a full review 
of his case by the appropriate ATF officer.
    (d) Unused, expired, suspended, or revoked permits must be returned 
immediately to the appropriate ATF officer.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42161, Oct. 18, 1985]



Sec. 447.45  Importation.

    (a) Articles subject to the import permit procedures of this subpart 
imported into the United States may be released from Customs custody to 
the person authorized to import same upon his showing that he has a 
permit for

[[Page 14]]

the importation of the article or articles to be released. For articles 
in Categories I and III imported by a registered importer, the importer 
will also submit to Customs a copy of the export license authorizing the 
export of the article or articles from the exporting country. If the 
exporting country does not require issuance of an export license, the 
importer must submit a certification, under penalty of perjury, to that 
effect.
    (1) In obtaining the release from Customs custody of an article 
imported pursuant to a permit, the permit holder will prepare and file 
Form 6A according to its instructions.
    (2) The ATF Form 6A must contain the information requested on the 
form, including:
    (i) The name, address, and license number (if any) of the importer;
    (ii) The name of the manufacturer of the defense article;
    (iii) The country of manufacture;
    (iv) The type;
    (v) The model;
    (vi) The caliber, gauge, or size;
    (vii) The serial number in the case of firearms, if known; and
    (viii) The number of defense articles released.
    (b) Within 15 days of the date of their release from Customs 
custody, the importer of the articles released will forward to the 
address specified on the form a copy of Form 6A on which will be 
reported any error or discrepancy appearing on the Form 6A certified by 
Customs and serial numbers if not previously provided on ATF Form 6A.

(Approved by the Office of Management and Budget under control number 
1512-0019)

[T.D. ATF-215, 50 FR 42161, Oct. 18, 1985, as amended by T.D. ATF-426, 
65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



Sec. 447.46  Articles in transit.

    Articles subject to the import permit procedures of this subpart 
which enter the United States for temporary deposit pending removal 
therefrom and such articles which are temporarily taken out of the 
United States for return thereto shall be regarded as in transit and 
will be considered neither imported nor exported under this part. Such 
transactions are subject to the Intransit or Temporary Export License 
procedures of the Department of State (see 22 CFR Part 123).

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42161, Oct. 18, 1985]



                   Subpart F_Miscellaneous Provisions



Sec. 447.51  Import certification and delivery verification.

    Pursuant to agreement with the United States, certain foreign 
countries are entitled to request certification of legality of 
importation of articles on the U.S. Munitions Import List. Upon request 
of a foreign government, the appropriate ATF officer will certify the 
importation, on Form ITA-645P/ATF-4522/DSP53, for the U.S. importer. 
Normally, the U.S. importer will submit this form at the time he applies 
for an import permit. This document will serve as evidence to the 
government of the exporting company that the U.S. importer has complied 
with import regulations of the U.S. Government and is prohibited from 
diverting, transshipping, or reexporting the material described therein 
without the approval of the U.S. Government. Foreign governments may 
also require documentation attesting to the delivery of the material 
into the United States. When such delivery certification is requested by 
a foreign government, the U.S. importer may obtain directly from the 
U.S. District Director of Customs the authenticated Delivery 
Verification Certificate (U.S. Department of Commerce Form ITA-647P) for 
this purpose.

(Approved by the Office of Management and Budget under control number 
0625-0064)

[T.D. ATF-215, 50 FR 42162, Oct. 18, 1985, as amended by T.D. ATF-484, 
67 FR 64526, Oct. 21, 2002]



Sec. 447.52  Import restrictions applicable to certain countries.

    (a) It is the policy of the United States to deny licenses and other 
approvals with respect to defense articles

[[Page 15]]

and defense services originating in certain countries or areas. This 
policy applies to Cuba, Iran, Iraq, Libya, Mongolia, North Korea, Sudan, 
Syria, Vietnam, and some of the states that comprised the former Soviet 
Union (Armenia, Azerbaijan, Belarus, and Tajikistan). This policy 
applies to countries or areas with respect to which the United States 
maintains an arms embargo (e.g., Burma, China, the Federal Republic of 
Yugoslavia (Serbia and Montenegro), Haiti, Liberia, Rwanda, Somalia, 
Sudan, UNITA (Angola), and Zaire). It also applies when an import would 
not be in furtherance of world peace and the security and foreign policy 
of the United States.

    Note: Changes in foreign policy may result in additions to and 
deletions from the above list of countries. The ATF will publish changes 
to this list in the Federal Register. Contact the Firearms and 
Explosives Imports Branch at (202) 927-8320 for current information.

    (b) Notwithstanding paragraph (a) of this section, the appropriate 
ATF officer shall deny applications to import into the United States the 
following firearms and ammunition:
    (1) Any firearm located or manufactured in Georgia, Kazakstan, 
Kyrgyzstan, Moldova, Russian Federation, Turkmenistan, Ukraine, or 
Uzbekistan, and any firearm previously manufactured in the Soviet Union, 
that is not one of the models listed below:
    (i) Pistols/Revolvers:
    (A) German Model P08 Pistol.
    (B) IZH 34M, .22 caliber Target Pistol.
    (C) IZH 35M, .22 caliber Target Pistol.
    (D) Mauser Model 1896 Pistol.
    (E) MC-57-1 Pistol.
    (F) MC-1-5 Pistol.
    (G) Polish Vis Model 35 Pistol.
    (H) Soviet Nagant Revolver.
    (I) TOZ 35, .22 caliber Target Pistol.
    (ii) Rifles:
    (A) BARS-4 Bolt Action Carbine.
    (B) Biathlon Target Rifle, .22LR caliber.
    (C) British Enfield Rifle.
    (D) CM2, .22 caliber Target Rifle (also known as SM2, 22 caliber).
    (E) German Model 98K Rifle.
    (F) German Model G41 Rifle.
    (G) German Model G43 Rifle.
    (H) IZH-94.
    (I) LOS-7 Bolt Action Rifle.
    (J) MC-7-07.
    (K) MC-18-3.
    (L) MC-19-07.
    (M) MC-105-01.
    (N) MC-112-02.
    (O) MC-113-02.
    (P) MC-115-1.
    (Q) MC-125/127.
    (R) MC-126.
    (S) MC-128.
    (T) Saiga Rifle.
    (U) Soviet Model 38 Carbine.
    (V) Soviet Model 44 Carbine.
    (W) Soviet Model 91/30 Rifle.
    (X) TOZ 18, .22 caliber Bolt Action Rifle.
    (Y) TOZ 55.
    (Z) TOZ 78.
    (AA) Ural Target Rifle, .22LR caliber.
    (BB) VEPR Rifle.
    (CC) Winchester Model 1895, Russian Model Rifle;
    (2) Ammunition located or manufactured in Georgia, Kazakstan, 
Kyrgyzstan, Moldova, Russian Federation, Turkmenistan, Ukraine, or 
Uzbekistan, and ammunition previously manufactured in the Soviet Union, 
that is 7.62X25mm caliber (also known as 7.63X25mm caliber or .30 
Mauser); or
    (3) A type of firearm the manufacture of which began after February 
9, 1996.
    (c) The provisions of paragraph (b) of this section shall not affect 
the fulfillment of contracts with respect to firearms or ammunition 
entered or withdrawn from warehouse for consumption in the United States 
on or before February 9, 1996.
    (d) A defense article authorized for importation under this part may 
not be shipped on a vessel, aircraft or other means or conveyance which 
is owned or operated by, or leased to or from, any of the countries or 
areas covered by paragraph (a) of this section.
    (e) Applications for permits to import articles that were 
manufactured in, or have been in, a country or area proscribed under 
this section may be approved where the articles are covered by Category 
I(a) of the Import List (other than those subject to the provisions of 
27 CFR Part 479), are importable as curios or relics under the 
provisions of 27 CFR 478.118, and meet the following criteria:

[[Page 16]]

    (1) The articles were manufactured in a proscribed country or area 
prior to the date, as established by the Department of State, the 
country or area became proscribed, or, were manufactured in a non-
proscribed country or area; and
    (2) The articles have been stored for the five year period 
immediately prior to importation in a non-proscribed country or area.
    (f) Applicants desiring to import articles claimed to meet the 
criteria specified in paragraph (e) of this section shall explain, and 
certify to, how the firearms meet the criteria. The certification 
statement will be prepared in letter form, executed under the penalties 
of perjury, and should be submitted with the application for an import 
permit. The certification statement must be accompanied by documentary 
information on the country or area of original manufacture and on the 
country or area of storage for the five year period immediately prior to 
importation. Such information may, for example, include a verifiable 
statement in the English language of a government official or any other 
person having knowledge of the date and place of manufacture and/or the 
place of storage; a warehouse receipt or other document which provides 
the required history of storage; and any other document that the 
applicant believes substantiates the place and date of manufacture and 
the place of storage. The appropriate ATF officer, however, reserves the 
right to determine whether documentation is acceptable. Applicants 
shall, when required by the appropriate ATF officer, furnish additional 
documentation as may be necessary to determine whether an import permit 
application should be approved.

[T.D. ATF-202, 50 FR 14382, Apr. 12, 1985, as amended by T.D. ATF-215, 
50 FR 42162, Oct. 18, 1985; T.D. ATF-287, 54 FR 13681, Apr. 5, 1989; 
T.D. ATF-323, 57 FR 24189, June 8, 1992; T.D. ATF-349, 58 FR 47831, 
Sept. 13, 1993; T.D. ATF-367, 60 FR 47866, Sept. 15, 1995; T.D. ATF-396, 
62 FR 61234, Nov. 17, 1997; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



Sec. 447.53  Exemptions.

    (a) The provisions of this part are not applicable to:
    (1) Importations by the United States or any agency thereof;
    (2) Importation of components for items being manufactured under 
contract for the Department of Defense; or
    (3) Importation of articles (other than those which would be 
``firearms'' as defined in 18 U.S.C. 921(a)(3) manufactured in foreign 
countries for persons in the United States pursuant to Department of 
State approval.
    (b) Any person seeking to import articles on the U.S. Munitions 
Import List as exempt under paragraph (a)(2) or (3) of this section may 
obtain release of such articles from Customs custody by submitting, to 
the Customs officer with authority to release, a statement claiming the 
exemption accompanied by satisfactory proof of eligibility. Such proof 
may be in the form of a letter from the Department of Defense or State, 
as the case may be, confirming that the conditions of the exemption are 
met.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42162, Oct. 18, 1985]



Sec. 447.54  Administrative procedures inapplicable.

    The functions conferred under section 38, Arms Export Control Act of 
1976, as amended, are excluded from the operation of Chapter 5, Title 5, 
United States Code, with respect to Rule Making and Adjudication, 5 
U.S.C. 553 and 554.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42162, Oct. 18, 1985]



Sec. 447.55  Departments of State and Defense consulted.

    The administration of the provisions of this part will be subject to 
the guidance of the Secretaries of State and Defense on matters 
affecting world peace and the external security and foreign policy of 
the United States.



Sec. 447.56  Authority of Customs officers.

    (a) Officers of the U.S. Customs Service are authorized to take 
appropriate action to assure compliance with this part and with 27 CFR 
Parts 478 and 479

[[Page 17]]

as to the importation or attempted importation of articles on the U.S. 
Munitions Import List, whether or not authorized by permit.
    (b) Upon the presentation to him of a permit or written approval 
authorizing importation of articles on the U.S. Munitions Import List, 
the Customs officer who has authority to release same may require, in 
addition to such documents as may be required by Customs regulations, 
the production of other relevant documents relating to the proposed 
importation, including, but not limited to, invoices, orders, packing 
lists, shipping documents, correspondence, and instructions.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42162, Oct. 18, 1985]



Sec. 447.57  U.S. military defense articles.

    (a)(1) Notwithstanding any other provision of this part or of parts 
478 or 479 of this chapter, no military defense article of United States 
manufacture may be imported into the United States if such article was 
furnished to a foreign government under a foreign assistance or foreign 
military sales program of the United States.
    (2) The restrictions in paragraph (a)(1) of this section cover 
defense articles which are advanced in value or improved in condition in 
a foreign country, but do not include those which have been 
substantially transformed as to become, in effect, articles of foreign 
manufacture.
    (b) Paragraph (a) of this section will not apply if:
    (1) The applicant submits with the ATF Form 6--Part I application 
written authorization from the Department of State to import the defense 
article; and
    (2) In the case of firearms, such firearms are curios or relics 
under 18 U.S.C. 925(e) and the person seeking to import such firearms 
provides a certification of a foreign government that the firearms were 
furnished to such government under a foreign assistance or foreign 
military sales program of the United States and that the firearms are 
owned by such foreign government. (See Sec. 478.118 of this chapter 
providing for the importation of certain curio or relic handguns, rifles 
and shotguns.)
    (c) For the purpose of this section, the term ``military defense 
article'' includes all defense articles furnished to foreign governments 
under a foreign assistance or foreign military sales program of the 
United States as set forth in paragraph (a) of this section.

(Approved by the Office of Management and Budget under OMB Control No. 
1512-0017)

[T.D. ATF-287, 54 FR 13681, Apr. 5, 1989, as amended by T.D. ATF-393, 62 
FR 61235, Nov. 17, 1997; T.D. ATF-426, 65 FR 38198, June 20, 2000]



Sec. 447.58  Delegations of the Director.

    The regulatory authorities of the Director contained in this part 
are delegated to appropriate ATF officers. These ATF officers are 
specified in ATF O 1130.34, Delegation of the Director's Authorities in 
27 CFR Part 447. ATF delegation orders, such as ATF O 1130.34, are 
available to any interested party by mailing a request to the ATF 
Distribution Center, PO Box 5950, Springfield, VA 22150-5950, or by 
accessing the ATF Web site http://www.atf.treas.gov/.

[T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]



              Subpart G_Penalties, Seizures and Forfeitures



Sec. 447.61  Unlawful importation.

    Any person who willfully:
    (a) Imports articles on the U.S. Munitions Import List without a 
permit;
    (b) Engages in the business of importing articles on the U.S. 
Munitions Import List without registering under this part; or
    (c) Otherwise violates any provisions of this part;

Shall upon conviction be fined not more than $1,000,000 or imprisoned 
not more than 10 years, or both.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended at 39 FR 4760, Feb. 
7, 1974; T.D. ATF-215, 50 FR 42162, Oct. 18, 1985; T.D. ATF-287, 54 FR 
13681, Apr. 5, 1989]



Sec. 447.62  False statements or concealment of facts.

    Any person who willfully, in a registration or permit application, 
makes any untrue statement of a material

[[Page 18]]

fact or fails to state a material fact required to be stated therein or 
necessary to make the statements therein not misleading, shall upon 
conviction be fined not more than $1,000,000, or imprisoned not more 
than 10 years, or both.

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42162, Oct. 18, 1985; T.D. ATF-287, 54 FR 13681, Apr. 5, 1989]



Sec. 447.63  Seizure and forfeiture.

    Whoever knowingly imports into the United States contrary to law any 
article on the U.S. Munitions Import List; or receives, conceals, buys, 
sells, or in any manner facilitates its transportation, concealment, or 
sale after importation, knowing the same to have been imported contrary 
to law, shall be fined not more than $10,000 or imprisoned not more than 
5 years, or both; and the merchandise so imported, or the value thereof 
shall be forfeited to the United States.

(18 U.S.C. 545)

[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 
FR 42162, Oct. 18, 1985]



PART 478_COMMERCE IN FIREARMS AND AMMUNITION--Table of Contents




                         Subpart A_Introduction

Sec.
478.1 Scope of regulations.
478.2 Relation to other provisions of law.

                          Subpart B_Definitions

478.11 Meaning of terms.

          Subpart C_Administrative and Miscellaneous Provisions

478.21 Forms prescribed.
478.22 Alternate methods or procedures; emergency variations from 
          requirements.
478.23 Right of entry and examination.
478.24 Compilation of State laws and published ordinances.
478.25 Disclosure of information.
478.25a Responses to requests for information.
478.26 Curio and relic determination.
478.27 Destructive device determination.
478.28 Transportation of destructive devices and certain firearms.
478.29 Out-of-State acquisition of firearms by nonlicenses.
478.29a Acquisition of firearms by nonresidents.
478.30 Out-of-State disposition of firearms by nonlicensees.
478.31 Delivery by common or contract carrier.
478.32 Prohibited shipment, transportation, possession, or receipt of 
          firearms and ammunition by certain persons.
478.33 Stolen firearms and ammunition.
478.33a Theft of firearms.
478.34 Removed, obliterated, or altered serial number.
478.35 Skeet, trap, target, and similar shooting activities.
478.36 Transfer or possession of machine guns.
478.37 Manufacture, importation and sale of armor piercing ammunition.
478.38 Transportation of firearms.
478.39 Assembly of semiautomatic rifles or shotguns.
478.39a Reporting theft or loss of firearms.
478.40 Manufacture, transfer, and possession of semiautomatic assault 
          weapons.
478.40a Transfer and possession of large capacity ammunition feeding 
          devices.

                           Subpart D_Licenses

478.41 General.
478.42 License fees.
478.43 License fee not refundable.
478.44 Original license.
478.45 Renewal of license.
478.46 Insufficient fee.
478.47 Issuance of license.
478.48 Correction of error on license.
478.49 Duration of license.
478.50 Locations covered by license.
478.51 License not transferable.
478.52 Change of address.
478.53 Change in trade name.
478.54 Change of control.
478.55 Continuing partnerships.
478.56 Right of succession by certain persons.
478.57 Discontinuance of business.
478.58 State or other law.
478.59 Abandoned application.
478.60 Certain continuances of business.

                      Subpart E_License Proceedings

478.71 Denial of an application for license.
478.72 Hearing after application denial.
478.73 Notice of revocation, suspension, or imposition of civil fine.
478.74 Request for hearing after notice of suspension, revocation, or 
          imposition of civil fine.
478.75 Service on applicant or licensee.
478.76 Representation at a hearing.
478.77 Designated place of hearing.
478.78 Operations by licensee after notice.

[[Page 19]]

                      Subpart F_Conduct of Business

478.91 Posting of license.
478.92 How must licensed manufacturers and licensed importers identify 
          firearms, armor piercing ammunition, and large capacity 
          ammunition feeding devices?
478.93 Authorized operations by a licensed collector.
478.94 Sales or deliveries between licensees.
478.95 Certified copy of license.
478.96 Out-of-State and mail order sales.
478.97 Loan or rental of firearms.
478.98 Sales or deliveries of destructive devices and certain firearms.
478.99 Certain prohibited sales or deliveries.
478.100 Conduct of business away from licensed premises.
478.101 Record of transactions.
478.102 Sales or deliveries of firearms on and after November 30, 1998.
478.103 Posting of signs and written notification to purchasers of 
          handguns.

                          Subpart G_Importation

478.111 General.
478.112 Importation by a licensed importer.
478.113 Importation by other licensees.
478.113a Importation of firearm barrels by nonlicensees.
478.114 Importation by members of the U.S. Armed Forces.
478.115 Exempt importation.
478.116 Conditional importation.
478.117 Function outside a customs territory.
478.118 Importation of certain firearms classified as curios and relics.
478.119 Importation of ammunition feeding devices.
478.120 Firearms or ammunition imported by or for a nonimmigrant alien.

                            Subpart H_Records

478.121 General.
478.122 Records maintained by importers.
478.123 Records maintained by manufacturers.
478.124 Firearms transaction record.
478.124a Firearms transaction record in lieu of record of receipt and 
          disposition.
478.125 Record of receipt and disposition.
478.125a Personal firearms collection.
478.126 Furnishing transaction information.
478.126a Reporting multiple sales or other disposition of pistols and 
          revolvers.
478.127 Discontinuance of business.
478.128 False statement or representation.
478.129 Record retention.
478.131 Firearms transactions not subject to a NICS check.
478.132 Dispositions of semiautomatic assault weapons and large capacity 
          ammunition feeding devices to law enforcement officers for 
          official use and to employees or contractors of nuclear 
          facilities.
478.133 Records of transactions in semiautomatic assault weapons.
478.134 Sale of firearms to law enforcement officers.

             Subpart I_Exemptions, Seizures, and Forfeitures

478.141 General.
478.142 Effect of pardons and expunctions of convictions.
478.143 Relief from disabilities incurred by indictment.
478.144 Relief from disabilities under the Act.
478.145 Research organizations.
478.146 Deliveries by mail to certain persons.
478.147 Return of firearm.
478.148 Armor piercing ammunition intended for sporting or industrial 
          purposes.
478.149 Armor piercing ammunition manufactured or imported for the 
          purpose of testing or experimentation.
478.150 Alternative to NICS in certain geographical locations.
478.151 Semiautomatic rifles or shotguns for testing or experimentation.
478.152 Seizure and forfeiture.
478.153 Semiautomatic assault weapons and large capacity ammunition 
          feeding devices manufactured or imported for the purposes of 
          testing or experimentation.

Subpart J [Reserved]

                          Subpart K_Exportation

478.171 Exportation.

    Authority: 5 U.S.C. 552(a); 18 U.S.C. 847, 921-930; 44 U.S.C. 
3504(h).

    Source: 33 FR 18555, Dec. 14, 1968, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. ATF-487, 68 FR 3750, Jan. 24, 2003.

    Editorial Note: Nomenclature changes to part 478 appear by T.D. ATF-
411, 64 FR 17291, Apr. 9, 1999, and T.D. ATF-487, 68 FR 3750, Jan. 24, 
2003.



                         Subpart A_Introduction



Sec. 478.1  Scope of regulations.

    (a) General. The regulations contained in this part relate to 
commerce in firearms and ammunition and are promulgated to implement 
Title I, State Firearms Control Assistance (18 U.S.C. Chapter 44), of 
the Gun Control Act of 1968 (82 Stat. 1213) as amended by Pub. L. 99-308 
(100 Stat. 449), Pub. L.

[[Page 20]]

99-360 (100 Stat. 766), Pub. L. 99-408 (100 Stat. 920), Pub. L. 103-159 
(107 Stat. 1536), Pub. L. 103-322 (108 Stat. 1796), Pub. L. 104-208 (110 
Stat. 3009), and Pub. L. 105-277 (112 Stat. 2681).
    (b) Procedural and substantive requirements. This part contains the 
procedural and substantive requirements relative to:
    (1) The interstate or foreign commerce in firearms and ammunition;
    (2) The licensing of manufacturers and importers of firearms and 
ammunition, collectors of firearms, and dealers in firearms;
    (3) The conduct of business or activity by licensees;
    (4) The importation of firearms and ammunition;
    (5) The records and reports required of licensees;
    (6) Relief from disabilities under this part;
    (7) Exempt interstate and foreign commerce in firearms and 
ammunition; and
    (8) Restrictions on armor piercing ammunition.

[T.D. ATF-270, 53 FR 10490, Mar. 31, 1988, as amended by T.D. ATF-354, 
59 FR 7112, Feb. 14, 1994; T.D. ATF-363, 60 FR 17450, Apr. 6, 1995; T.D. 
ATF-401, 63 FR 35522, June 30, 1998; T.D. ATF-471, 67 FR 5425, Feb. 5, 
2002]



Sec. 478.2  Relation to other provisions of law.

    The provisions in this part are in addition to, and are not in lieu 
of, any other provision of law, or regulations, respecting commerce in 
firearms or ammunition. For regulations applicable to traffic in machine 
guns, destructive devices, and certain other firearms, see Part 479 of 
this chapter. For statutes applicable to the registration and licensing 
of persons engaged in the business of manufacturing, importing or 
exporting arms, ammunition, or implements of war, see section 38 of the 
Arms Export Control Act (22 U.S.C. 2778) and regulations thereunder and 
Part 447 of this chapter. For statutes applicable to nonmailable 
firearms, see 18 U.S.C. 1715 and regulations thereunder.

[T.D. ATF-270, 53 FR 10490, Mar. 31, 1988]



                          Subpart B_Definitions



Sec. 478.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meanings ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude other 
things not enumerated which are in the same general class or are 
otherwise within the scope thereof.
    Act. 18 U.S.C. Chapter 44.
    Adjudicated as a mental defective. (a) A determination by a court, 
board, commission, or other lawful authority that a person, as a result 
of marked subnormal intelligence, or mental illness, incompetency, 
condition, or disease:
    (1) Is a danger to himself or to others; or
    (2) Lacks the mental capacity to contract or manage his own affairs.
    (b) The term shall include--
    (1) A finding of insanity by a court in a criminal case; and
    (2) Those persons found incompetent to stand trial or found not 
guilty by reason of lack of mental responsibility pursuant to articles 
50a and 72b of the Uniform Code of Military Justice, 10 U.S.C. 850a, 
876b.
    Admitted to the United States for lawful hunting or sporting 
purposes. (a) Is entering the United States to participate in a 
competitive target shooting event sponsored by a national, State, or 
local organization, devoted to the competitive use or other sporting use 
of firearms; or
    (b) Is entering the United States to display firearms at a sports or 
hunting trade show sponsored by a national, State, or local firearms 
trade organization, devoted to the competitive use or other sporting use 
of firearms.
    Alien. Any person not a citizen or national of the United States.
    Alien illegally or unlawfully in the United States. Aliens who are 
unlawfully in the United States are not in valid immigrant, nonimmigrant 
or parole status. The term includes any alien--

[[Page 21]]

    (a) Who unlawfully entered the United States without inspection and 
authorization by an immigration officer and who has not been paroled 
into the United States under section 212(d)(5) of the Immigration and 
Nationality Act (INA);
    (b) Who is a nonimmigrant and whose authorized period of stay has 
expired or who has violated the terms of the nonimmigrant category in 
which he or she was admitted;
    (c) Paroled under INA section 212(d)(5) whose authorized period of 
parole has expired or whose parole status has been terminated; or
    (d) Under an order of deportation, exclusion, or removal, or under 
an order to depart the United States voluntarily, whether or not he or 
she has left the United States.
    Ammunition. Ammunition or cartridge cases, primers, bullets, or 
propellent powder designed for use in any firearm other than an antique 
firearm. The term shall not include (a) any shotgun shot or pellet not 
designed for use as the single, complete projectile load for one shotgun 
hull or casing, nor (b) any unloaded, non-metallic shotgun hull or 
casing not having a primer.
    Antique firearm. (a) Any firearm (including any firearm with a 
matchlock, flintlock, percussion cap, or similar type of ignition 
system) manufactured in or before 1898; and (b) any replica of any 
firearm described in paragraph (a) of this definition if such replica 
(1) is not designed or redesigned for using rimfire or conventional 
centerfire fixed ammunition, or (2) uses rimfire or conventional 
centerfire fixed ammunition which is no longer manufactured in the 
United States and which is not readily available in the ordinary 
channels of commercial trade.
    Armor piercing ammunition. Projectiles or projectile cores which may 
be used in a handgun and which are constructed entirely (excluding the 
presence of traces of other substances) from one or a combination of 
tungsten alloys, steel, iron, brass, bronze, beryllium copper, or 
depleted uranium; or full jacketed projectiles larger than .22 caliber 
designed and intended for use in a handgun and whose jacket has a weight 
of more than 25 percent of the total weight of the projectile. The term 
does not include shotgun shot required by Federal or State environmental 
or game regulations for hunting purposes, frangible projectiles designed 
for target shooting, projectiles which the Director finds are primarily 
intended to be used for sporting purposes, or any other projectiles or 
projectile cores which the Director finds are intended to be used for 
industrial purposes, including charges used in oil and gas well 
perforating devices.
    ATF officer. An officer or employee of the Bureau of Alcohol, 
Tobacco and Firearms (ATF) authorized to perform any function relating 
to the administration or enforcement of this part.
    Business premises. The property on which the manufacturing or 
importing of firearms or ammunition or the dealing in firearms is or 
will be conducted. A private dwelling, no part of which is open to the 
public, shall not be recognized as coming within the meaning of the 
term.
    Chief, National Licensing Center. The ATF official responsible for 
the issuance and renewal of licenses under this part.
    Collector. Any person who acquires, holds, or disposes of firearms 
as curios or relics.
    Collection premises. The premises described on the license of a 
collector as the location at which he maintains his collection of curios 
and relics.
    Commerce. Travel, trade, traffic, commerce, transportation, or 
communication among the several States, or between the District of 
Columbia and any State, or between any foreign country or any territory 
or possession and any State or the District of Columbia, or between 
points in the same State but through any other State or the District of 
Columbia or a foreign country.
    Committed to a mental institution. A formal commitment of a person 
to a mental institution by a court, board, commission, or other lawful 
authority. The term includes a commitment to a mental institution 
involuntarily. The term includes commitment for mental defectiveness or 
mental illness. It also includes commitments for other reasons, such as 
for drug use. The term does not include a person in a mental

[[Page 22]]

institution for observation or a voluntary admission to a mental 
institution.
    Controlled substance. A drug or other substance, or immediate 
precursor, as defined in section 102 of the Controlled Substances Act, 
21 U.S.C. 802. The term includes, but is not limited to, marijuana, 
depressants, stimulants, and narcotic drugs. The term does not include 
distilled spirits, wine, malt beverages, or tobacco, as those terms are 
defined or used in Subtitle E of the Internal Revenue Code of 1986, as 
amended.
    Crime punishable by imprisonment for a term exceeding 1 year. Any 
Federal, State or foreign offense for which the maximum penalty, whether 
or not imposed, is capital punishment or imprisonment in excess of 1 
year. The term shall not include (a) any Federal or State offenses 
pertaining to antitrust violations, unfair trade practices, restraints 
of trade, or other similar offenses relating to the regulation of 
business practices or (b) any State offense classified by the laws of 
the State as a misdemeanor and punishable by a term of imprisonment of 2 
years or less. What constitutes a conviction of such a crime shall be 
determined in accordance with the law of the jurisdiction in which the 
proceedings were held. Any conviction which has been expunged or set 
aside or for which a person has been pardoned or has had civil rights 
restored shall not be considered a conviction for the purposes of the 
Act or this part, unless such pardon, expunction, or restoration of 
civil rights expressly provides that the person may not ship, transport, 
possess, or receive firearms, or unless the person is prohibited by the 
law of the jurisdiction in which the proceedings were held from 
receiving or possessing any firearms.
    Curios or relics. Firearms which are of special interest to 
collectors by reason of some quality other than is associated with 
firearms intended for sporting use or as offensive or defensive weapons. 
To be recognized as curios or relics, firearms must fall within one of 
the following categories:
    (a) Firearms which were manufactured at least 50 years prior to the 
current date, but not including replicas thereof;
    (b) Firearms which are certified by the curator of a municipal, 
State, or Federal museum which exhibits firearms to be curios or relics 
of museum interest; and
    (c) Any other firearms which derive a substantial part of their 
monetary value from the fact that they are novel, rare, bizarre, or 
because of their association with some historical figure, period, or 
event. Proof of qualification of a particular firearm under this 
category may be established by evidence of present value and evidence 
that like firearms are not available except as collector's items, or 
that the value of like firearms available in ordinary commercial 
channels is substantially less.
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Dealer. Any person engaged in the business of selling firearms at 
wholesale or retail; any person engaged in the business of repairing 
firearms or of making or fitting special barrels, stocks, or trigger 
mechanisms to firearms; or any person who is a pawnbroker. The term 
shall include any person who engages in such business or occupation on a 
part-time basis.
    Destructive device. (a) Any explosive, incendiary, or poison gas (1) 
bomb, (2) grenade, (3) rocket having a propellant charge of more than 4 
ounces, (4) missile having an explosive or incendiary charge of more 
than one-quarter ounce, (5) mine, or (6) device similar to any of the 
devices described in the preceding paragraphs of this definition; (b) 
any type of weapon (other than a shotgun or a shotgun shell which the 
Director finds is generally recognized as particularly suitable for 
sporting purposes) by whatever name known which will, or which may be 
readily converted to, expel a projectile by the action of an explosive 
or other propellant, and which has any barrel with a bore of more than 
one-half inch in diameter; and (c) any combination of parts either

[[Page 23]]

designed or intended for use in converting any device into any 
destructive device described in paragraph (a) or (b) of this section and 
from which a destructive device may be readily assembled. The term shall 
not include any device which is neither designed nor redesigned for use 
as a weapon; any device, although originally designed for use as a 
weapon, which is redesigned for use as a signalling, pyrotechnic, line 
throwing, safety, or similar device; surplus ordnance sold, loaned, or 
given by the Secretary of the Army pursuant to the provisions of section 
4684(2), 4685, or 4686 of title 10, United States Code; or any other 
device which the Director finds is not likely to be used as a weapon, is 
an antique, or is a rifle which the owner intends to use solely for 
sporting, recreational, or cultural purposes.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of the Treasury, Washington, DC.
    Director of Industry Operations. The principal ATF official in a 
Field Operations division responsible for administering regulations in 
this part.
    Discharged under dishonorable conditions. Separation from the U.S. 
Armed Forces resulting from a dishonorable discharge or dismissal 
adjudged by a general court-martial. The term does not include any 
separation from the Armed Forces resulting from any other discharge, 
e.g., a bad conduct discharge.
    Division. A Bureau of Alcohol, Tobacco and Firearms Division.
    Engaged in the business--(a) Manufacturer of firearms. A person who 
devotes time, attention, and labor to manufacturing firearms as a 
regular course of trade or business with the principal objective of 
livelihood and profit through the sale or distribution of the firearms 
manufactured;
    (b) Manufacturer of ammunition. A person who devotes time, 
attention, and labor to manufacturing ammunition as a regular course of 
trade or business with the principal objective of livelihood and profit 
through the sale or distribution of the ammunition manufactured;
    (c) Dealer in firearms other than a gunsmith or a pawnbroker. A 
person who devotes time, attention, and labor to dealing in firearms as 
a regular course of trade or business with the principal objective of 
livelihood and profit through the repetitive purchase and resale of 
firearms, but such a term shall not include a person who makes 
occasional sales, exchanges, or purchases of firearms for the 
enhancement of a personal collection or for a hobby, or who sells all or 
part of his personal collection of firearms;
    (d) Gunsmith. A person who devotes time, attention, and labor to 
engaging in such activity as a regular course of trade or business with 
the principal objective of livelihood and profit, but such a term shall 
not include a person who makes occasional repairs of firearms or who 
occasionally fits special barrels, stocks, or trigger mechanisms to 
firearms;
    (e) Importer of firearms. A person who devotes time, attention, and 
labor to importing firearms as a regular course of trade or business 
with the principal objective of livelihood and profit through the sale 
or distribution of the firearms imported; and,
    (f) Importer of ammunition. A person who devotes time, attention, 
and labor to importing ammunition as a regular course of trade or 
business with the principal objective of livelihood and profit through 
the sale or distribution of the ammunition imported.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return form, or other document or, where no form of 
declaration is prescribed, with the declaration:

    ``I declare under the penalties of perjury that this--(insert type 
of document, such as, statement, application, request, certificate), 
including the documents submitted in support thereof, has been examined 
by me and, to the best of my knowledge and belief, is true, correct, and 
complete.''

    Federal Firearms Act. 15 U.S.C. Chapter 18.
    Firearm. Any weapon, including a starter gun, which will or is 
designed to or may readily be converted to expel a projectile by the 
action of an explosive; the frame or receiver of any such weapon; any 
firearm muffler or firearm silencer; or any destructive device; but

[[Page 24]]

the term shall not include an antique firearm. In the case of a licensed 
collector, the term shall mean only curios and relics.
    Firearm frame or receiver. That part of a firearm which provides 
housing for the hammer, bolt or breechblock, and firing mechanism, and 
which is usually threaded at its forward portion to receive the barrel.
    Firearm muffler or firearm silencer. Any device for silencing, 
muffling, or diminishing the report of a portable firearm, including any 
combination of parts, designed or redesigned, and intended for use in 
assembling or fabricating a firearm silencer or firearm muffler, and any 
part intended only for use in such assembly or fabrication.
    Friendly foreign government. Any government with whom the United 
States has diplomatic relations and whom the United States has not 
identified as a State sponsor of terrorism.
    Fugitive from justice. Any person who has fled from any State to 
avoid prosecution for a felony or a misdemeanor; or any person who 
leaves the State to avoid giving testimony in any criminal proceeding. 
The term also includes any person who knows that misdemeanor or felony 
charges are pending against such person and who leaves the State of 
prosecution.
    Handgun. (a) Any firearm which has a short stock and is designed to 
be held and fired by the use of a single hand; and
    (b) Any combination of parts from which a firearm described in 
paragraph (a) can be assembled.
    Hunting license or permit lawfully issued in the United States. A 
license or permit issued by a State for hunting which is valid and 
unexpired.
    Identification document. A document containing the name, residence 
address, date of birth, and photograph of the holder and which was made 
or issued by or under the authority of the United States Government, a 
State, political subdivision of a State, a foreign government, political 
subdivision of a foreign government, an international governmental or an 
international quasi- governmental organization which, when completed 
with information concerning a particular individual, is of a type 
intended or commonly accepted for the purpose of identification of 
individuals.
    Importation. The bringing of a firearm or ammunition into the United 
States; except that the bringing of a firearm or ammunition from outside 
the United States into a foreign-trade zone for storage pending shipment 
to a foreign country or subsequent importation into this country, 
pursuant to this part, shall not be deemed importation.
    Importer. Any person engaged in the business of importing or 
bringing firearms or ammunition into the United States. The term shall 
include any person who engages in such business on a part-time basis.
    Indictment. Includes an indictment or information in any court, 
under which a crime punishable by imprisonment for a term exceeding 1 
year (as defined in this section) may be prosecuted, or in military 
cases to any offense punishable by imprisonment for a term exceeding 1 
year which has been referred to a general court-martial. An information 
is a formal accusation of a crime, differing from an indictment in that 
it is made by a prosecuting attorney and not a grand jury.
    Interstate or foreign commerce. Includes commerce between any place 
in a State and any place outside of that State, or within any possession 
of the United States (not including the Canal Zone) or the District of 
Columbia. The term shall not include commerce between places within the 
same State but through any place outside of that State.
    Intimate partner. With respect to a person, the spouse of the 
person, a former spouse of the person, an individual who is a parent of 
a child of the person, and an individual who cohabitates or has 
cohabitated with the person.
    Large capacity ammunition feeding device. A magazine, belt, drum, 
feed strip, or similar device for a firearm manufactured after September 
13, 1994, that has a capacity of, or that can be readily restored or 
converted to accept, more than 10 rounds of ammunition. The term does 
not include an attached tubular device designed to accept, and capable 
of operating only with, .22 caliber rimfire ammunition, or a fixed 
device for a manually operated firearm,

[[Page 25]]

or a fixed device for a firearm listed in 18 U.S.C. 922, Appendix A.
    Licensed collector. A collector of curios and relics only and 
licensed under the provisions of this part.
    Licensed dealer. A dealer licensed under the provisions of this 
part.
    Licensed importer. An importer licensed under the provisions of this 
part.
    Licensed manufacturer. A manufacturer licensed under the provisions 
of this part.
    Machine gun. Any weapon which shoots, is designed to shoot, or can 
be readily restored to shoot, automatically more than one shot, without 
manual reloading, by a single function of the trigger. The term shall 
also include the frame or receiver of any such weapon, any part designed 
and intended solely and exclusively, or combination of parts designed 
and intended, for use in converting a weapon into a machine gun, and any 
combination of parts from which a machine gun can be assembled if such 
parts are in the possession or under the control of a person.
    Manufacturer. Any person engaged in the business of manufacturing 
firearms or ammunition. The term shall include any person who engages in 
such business on a part-time basis.
    Mental institution. Includes mental health facilities, mental 
hospitals, sanitariums, psychiatric facilities, and other facilities 
that provide diagnoses by licensed professionals of mental retardation 
or mental illness, including a psychiatric ward in a general hospital.
    Misdemeanor crime of domestic violence. (a) Is a Federal, State or 
local offense that:
    (1) Is a misdemeanor under Federal or State law or, in States which 
do not classify offenses as misdemeanors, is an offense punishable by 
imprisonment for a term of one year or less, and includes offenses that 
are punishable only by a fine. (This is true whether or not the State 
statute specifically defines the offense as a ``misdemeanor'' or as a 
``misdemeanor crime of domestic violence.'' The term includes all such 
misdemeanor convictions in Indian Courts established pursuant to 25 CFR 
part 11.);
    (2) Has, as an element, the use or attempted use of physical force 
(e.g., assault and battery), or the threatened use of a deadly weapon; 
and
    (3) Was committed by a current or former spouse, parent, or guardian 
of the victim, by a person with whom the victim shares a child in 
common, by a person who is cohabiting with or has cohabited with the 
victim as a spouse, parent, or guardian, (e.g., the equivalent of a 
``common law'' marriage even if such relationship is not recognized 
under the law), or a person similarly situated to a spouse, parent, or 
guardian of the victim (e.g., two persons who are residing at the same 
location in an intimate relationship with the intent to make that place 
their home would be similarly situated to a spouse).
    (b) A person shall not be considered to have been convicted of such 
an offense for purposes of this part unless:
    (1) The person is considered to have been convicted by the 
jurisdiction in which the proceedings were held.
    (2) The person was represented by counsel in the case, or knowingly 
and intelligently waived the right to counsel in the case; and
    (3) In the case of a prosecution for which a person was entitled to 
a jury trial in the jurisdiction in which the case was tried, either
    (i) The case was tried by a jury, or
    (ii) The person knowingly and intelligently waived the right to have 
the case tried by a jury, by guilty plea or otherwise.
    (c) A person shall not be considered to have been convicted of such 
an offense for purposes of this part if the conviction has been expunged 
or set aside, or is an offense for which the person has been pardoned or 
has had civil rights restored (if the law of the jurisdiction in which 
the proceedings were held provides for the loss of civil rights upon 
conviction for such an offense) unless the pardon, expunction, or 
restoration of civil rights expressly provides that the person may not 
ship, transport, possess, or receive firearms, and the person is not 
otherwise prohibited by the law of the jurisdiction in which the 
proceedings were held from receiving or possessing any firearms.
    National Firearms Act. 26 U.S.C. Chapter 53.

[[Page 26]]

    NICS. The National Instant Criminal Background Check System 
established by the Attorney General pursuant to 18 U.S.C. 922(t).
    Nonimmigrant alien. An alien in the United States in a nonimmigrant 
classification as defined by section 101(a)(15) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(15)).
    Pawnbroker. Any person whose business or occupation includes the 
taking or receiving, by way of pledge or pawn, of any firearm as 
security for the payment or repayment of money. The term shall include 
any person who engages in such business on a part-time basis.
    Permanently inoperable. A firearm which is incapable of discharging 
a shot by means of an explosive and incapable of being readily restored 
to a firing condition. An acceptable method of rendering most firearms 
permanently inoperable is to fusion weld the chamber closed and fusion 
weld the barrel solidly to the frame. Certain unusual firearms require 
other methods to render the firearm permanently inoperable. Contact ATF 
for instructions.
    Person. Any individual, corporation, company, association, firm, 
partnership, society, or joint stock company.
    Pistol. A weapon originally designed, made, and intended to fire a 
projectile (bullet) from one or more barrels when held in one hand, and 
having (a) a chamber(s) as an integral part(s) of, or permanently 
aligned with, the bore(s); and (b) a short stock designed to be gripped 
by one hand and at an angle to and extending below the line of the 
bore(s).
    Principal objective of livelihood and profit. The intent underlying 
the sale or disposition of firearms is predominantly one of obtaining 
livelihood and pecuniary gain, as opposed to other intents such as 
improving or liquidating a personal firearms collection: Provided, That 
proof of profit shall not be required as to a person who engages in the 
regular and repetitive purchase and disposition of firearms for criminal 
purposes or terrorism. For purposes of this part, the term ``terrorism'' 
means activity, directed against United States persons, which--
    (a) Is committed by an individual who is not a national or permanent 
resident alien of the United States;
    (b) Involves violent acts or acts dangerous to human life which 
would be a criminal violation if committed within the jurisdiction of 
the United States; and
    (c) Is intended--
    (1) To intimidate or coerce a civilian population;
    (2) To influence the policy of a government by intimidation or 
coercion; or
    (3) To affect the conduct of a government by assassination or 
kidnapping.
    Published ordinance. A published law of any political subdivision of 
a State which the Director determines to be relevant to the enforcement 
of this part and which is contained on a list compiled by the Director, 
which list is incorporated by reference in the Federal Register, revised 
annually, and furnished to licensees under this part.
    Renounced U.S. citizenship. (a) A person has renounced his U.S. 
citizenship if the person, having been a citizen of the United States, 
has renounced citizenship either--
    (1) Before a diplomatic or consular officer of the United States in 
a foreign state pursuant to 8 U.S.C. 1481(a)(5); or
    (2) Before an officer designated by the Attorney General when the 
United States is in a state of war pursuant to 8 U.S.C. 1481(a)(6).
    (b) The term shall not include any renunciation of citizenship that 
has been reversed as a result of administrative or judicial appeal.
    Revolver. A projectile weapon, of the pistol type, having a 
breechloading chambered cylinder so arranged that the cocking of the 
hammer or movement of the trigger rotates it and brings the next 
cartridge in line with the barrel for firing.
    Rifle. A weapon designed or redesigned, made or remade, and intended 
to be fired from the shoulder, and designed or redesigned and made or 
remade to use the energy of the explosive in a fixed metallic cartridge 
to fire only a single projectile through a rifled bore for each single 
pull of the trigger.
    Semiautomatic assault weapon. (a) Any of the firearms, or copies or 
duplicates

[[Page 27]]

of the firearms in any caliber, known as:
    (1) Norinco, Mitchell, and Poly Technologies Avtomat Kalashnikovs 
(all models),
    (2) Action Arms Israeli Military Industries UZI and Galil,
    (3) Beretta Ar70 (SC-70),
    (4) Colt AR-15,
    (5) Fabrique National FN/FAL, FN/LAR, and FNC,
    (6) SWD M-10, M-11, M-11/9, and M-12,
    (7) Steyr AUG,
    (8) INTRATEC TEC-9, TEC-DC9 and TEC-22, and
    (9) Revolving cylinder shotguns, such as (or similar to) the Street 
Sweeper and Striker 12;
    (b) A semiautomatic rifle that has an ability to accept a detachable 
magazine and has at least 2 of--
    (1) A folding or telescoping stock,
    (2) A pistol grip that protrudes conspicuously beneath the action of 
the weapon,
    (3) A bayonet mount,
    (4) A flash suppressor or threaded barrel designed to accommodate a 
flash suppressor, and
    (5) A grenade launcher;
    (c) A semiautomatic pistol that has an ability to accept a 
detachable magazine and has at least 2 of--
    (1) An ammunition magazine that attaches to the pistol outside of 
the pistol grip,
    (2) A threaded barrel capable of accepting a barrel extender, flash 
suppressor, forward handgrip, or silencer,
    (3) A shroud that is attached to, or partially or completely 
encircles, the barrel and that permits the shooter to hold the firearm 
with the nontrigger hand without being burned,
    (4) A manufactured weight of 50 ounces or more when the pistol is 
unloaded, and
    (5) A semiautomatic version of an automatic firearm; and
    (d) A semiautomatic shotgun that has at least 2 of--
    (1) A folding or telescoping stock,
    (2) A pistol grip that protrudes conspicuously beneath the action of 
the weapon,
    (3) A fixed magazine capacity in excess of 5 rounds, and
    (4) An ability to accept a detachable magazine.
    Semiautomatic pistol. Any repeating pistol which utilizes a portion 
of the energy of a firing cartridge to extract the fired cartridge case 
and chamber the next round, and which requires a separate pull of the 
trigger to fire each cartridge.
    Semiautomatic rifle. Any repeating rifle which utilizes a portion of 
the energy of a firing cartridge to extract the fired cartridge case and 
chamber the next round, and which requires a separate pull of the 
trigger to fire each cartridge.
    Semiautomatic shotgun. Any repeating shotgun which utilizes a 
portion of the energy of a firing cartridge to extract the fired 
cartridge case and chamber the next round, and which requires a separate 
pull of the trigger to fire each cartridge.
    Short-barreled rifle. A rifle having one or more barrels less than 
16 inches in length, and any weapon made from a rifle, whether by 
alteration, modification, or otherwise, if such weapon, as modified, has 
an overall length of less than 26 inches.
    Short-barreled shotgun. A shotgun having one or more barrels less 
than 18 inches in length, and any weapon made from a shotgun, whether by 
alteration, modification, or otherwise, if such weapon as modified has 
an overall length of less than 26 inches.
    Shotgun. A weapon designed or redesigned, made or remade, and 
intended to be fired from the shoulder, and designed or redesigned and 
made or remade to use the energy of the explosive in a fixed shotgun 
shell to fire through a smooth bore either a number of ball shot or a 
single projectile for each single pull of the trigger.
    State. A State of the United States. The term shall include the 
District of Columbia, the Commonwealth of Puerto Rico, and the 
possessions of the United States (not including the Canal Zone).
    State of residence. The State in which an individual resides. An 
individual resides in a State if he or she is present in a State with 
the intention of making a home in that State. If an individual is on 
active duty as a member of the Armed Forces, the individual's State of 
residence is the State in which

[[Page 28]]

his or her permanent duty station is located. An alien who is legally in 
the United States shall be considered to be a resident of a State only 
if the alien is residing in the State and has resided in the State for a 
period of at least 90 days prior to the date of sale or delivery of a 
firearm. The following are examples that illustrate this definition:

    Example 1. A maintains a home in State X. A travels to State Y on a 
hunting, fishing, business, or other type of trip. A does not become a 
resident of State Y by reason of such trip.
    Example 2. A is a U.S. citizen and maintains a home in State X and a 
home in State Y. A resides in State X except for weekends or the summer 
months of the year and in State Y for the weekends or the summer months 
of the year. During the time that A actually resides in State X, A is a 
resident of State X, and during the time that A actually resides in 
State Y, A is a resident of State Y.
    Example 3. A, an alien, travels on vacation or on a business trip to 
State X. Regardless of the length of time A spends in State X, A does 
not have a State of residence in State X. This is because A does not 
have a home in State X at which he has resided for at least 90 days.

    Unlawful user of or addicted to any controlled substance. A person 
who uses a controlled substance and has lost the power of self-control 
with reference to the use of controlled substance; and any person who is 
a current user of a controlled substance in a manner other than as 
prescribed by a licensed physician. Such use is not limited to the use 
of drugs on a particular day, or within a matter of days or weeks 
before, but rather that the unlawful use has occurred recently enough to 
indicate that the individual is actively engaged in such conduct. A 
person may be an unlawful current user of a controlled substance even 
though the substance is not being used at the precise time the person 
seeks to acquire a firearm or receives or possesses a firearm. An 
inference of current use may be drawn from evidence of a recent use or 
possession of a controlled substance or a pattern of use or possession 
that reasonably covers the present time, e.g., a conviction for use or 
possession of a controlled substance within the past year; multiple 
arrests for such offenses within the past 5 years if the most recent 
arrest occurred within the past year; or persons found through a drug 
test to use a controlled substance unlawfully, provided that the test 
was administered within the past year. For a current or former member of 
the Armed Forces, an inference of current use may be drawn from recent 
disciplinary or other administrative action based on confirmed drug use, 
e.g., court-martial conviction, nonjudicial punishment, or an 
administrative discharge based on drug use or drug rehabilitation 
failure.
    Unserviceable firearm. A firearm which is incapable of discharging a 
shot by means of an explosive and is incapable of being readily restored 
to a firing condition.
    U.S.C. The United States Code.

(5 U.S.C. 552(a), 80 Stat. 383, as amended; 18 U.S.C. 847 (84 Stat. 
959); 18 U.S.C. 926 (82 Stat. 1226))

[T.D. ATF-48, 43 FR 13536, Mar. 31 1978; 44 FR 55842, Sept. 28, 1979]

    Editorial Note: For Federal Register citations affecting Sec. 
478.11, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



          Subpart C_Administrative and Miscellaneous Provisions



Sec. 478.21  Forms prescribed.

    (a) The Director is authorized to prescribe all forms required by 
this part. All of the information called for in each form shall be 
furnished as indicated by the headings on the form and the instructions 
on or pertaining to the form. In addition, information called for in 
each form shall be furnished as required by this part.
    (b) Requests for forms should be mailed to the ATF Distribution 
Center, 7943 Angus Court, Springfield, Virginia 22153.

(5 U.S.C. 552(a); 80 Stat. 383, as amended)

[T.D. ATF-92, 46 FR 46915, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5962, Feb. 27, 1987; T.D. ATF-270, 53 FR 10492, Mar. 31, 1988; 
T.D. 372, 61 FR 20724, May 8, 1996]



Sec. 478.22  Alternate methods or procedures; emergency variations 
from requirements.

    (a) Alternate methods or procedures. The licensee, on specific 
approval by the Director as provided in this paragraph, may use an 
alternate method or

[[Page 29]]

procedure in lieu of a method or procedure specifically prescribed in 
this part. The Director may approve an alternate method or procedure, 
subject to stated conditions, when it is found that:
    (1) Good cause is shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure and that the alternate method or procedure is 
substantially equivalent to that specifically prescribed method or 
procedure; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law and will not result in an increase in cost to the 
Government or hinder the effective administration of this part. Where 
the licensee desires to employ an alternate method or procedure, a 
written application shall be submitted to the appropriate Director of 
Industry Operations, for transmittal to the Director. The application 
shall specifically describe the proposed alternate method or procedure 
and shall set forth the reasons for it. Alternate methods or procedures 
may not be employed until the application is approved by the Director. 
The licensee shall, during the period of authorization of an alternate 
method or procedure, comply with the terms of the approved application. 
Authorization of any alternate method or procedure may be withdrawn 
whenever, in the judgment of the Director, the effective administration 
of this part is hindered by the continuation of the authorization.
    (b) Emergency variations from requirements. The Director may approve 
a method of operation other than as specified in this part, where it is 
found that an emergency exists and the proposed variation from the 
specified requirements are necessary and the proposed variations (1) 
will not hinder the effective administration of this part, and (2) will 
not be contrary to any provisions of law. Variations from requirements 
granted under this paragraph are conditioned on compliance with the 
procedures, conditions, and limitations set forth in the approval of the 
application. Failure to comply in good faith with the procedures, 
conditions, and limitations shall automatically terminate the authority 
for the variations, and the licensee shall fully comply with the 
prescribed requirements of regulations from which the variations were 
authorized. Authority for any variation may be withdrawn whenever, in 
the judgment of the Director, the effective administration of this part 
is hindered by the continuation of the variation. Where the licensee 
desires to employ an emergency variation, a written application shall be 
submitted to the appropriate Director of Industry Operations for 
transmittal to the Director. The application shall describe the proposed 
variation and set forth the reasons for it. Variations may not be 
employed until the application is approved.
    (c) Retention of approved variations. The licensee shall retain, as 
part of the licensee's records, available for examination by ATF 
officers, any application approved by the Director under this section.

[T.D. ATF-270, 53 FR 10492, Mar. 31, 1988]



Sec. 478.23  Right of entry and examination.

    (a) Except as provided in paragraph (b), any ATF officer, when there 
is reasonable cause to believe a violation of the Act has occurred and 
that evidence of the violation may be found on the premises of any 
licensed manufacturer, licensed importer, licensed dealer, or licensed 
collector, may, upon demonstrating such cause before a Federal 
magistrate and obtaining from the magistrate a warrant authorizing 
entry, enter during business hours (or, in the case of a licensed 
collector, the hours of operation) the premises, including places of 
storage, of any such licensee for the purpose of inspecting or 
examining:
    (1) Any records or documents required to be kept by such licensee 
under this part and
    (2) Any inventory of firearms or ammunition kept or stored by any 
licensed manufacturer, licensed importer, or licensed dealer at such 
premises or any firearms curios or relics or ammunition kept or stored 
by any licensed collector at such premises.

[[Page 30]]

    (b) Any ATF officer, without having reasonable cause to believe a 
violation of the Act has occurred or that evidence of the violation may 
be found and without demonstrating such cause before a Federal 
magistrate or obtaining from the magistrate a warrant authorizing entry, 
may enter during business hours the premises, including places of 
storage, of any licensed manufacturer, licensed importer, or licensed 
dealer for the purpose of inspecting or examining the records, 
documents, ammunition and firearms referred to in paragraph (a) of this 
section:
    (1) In the course of a reasonable inquiry during the course of a 
criminal investigation of a person or persons other than the licensee,
    (2) For insuring compliance with the recordkeeping requirements of 
this part:
    (i) Not more than once during any 12-month period, or
    (ii) At any time with respect to records relating to a firearm 
involved in a criminal investigation that is traced to the licensee, or
    (3) When such inspection or examination may be required for 
determining the disposition of one or more particular firearms in the 
course of a bona fide criminal investigation.
    (c) Any ATF officer, without having reasonable cause to believe a 
violation of the Act has occurred or that evidence of the violation may 
be found and without demonstrating such cause before a Federal 
magistrate or obtaining from the magistrate a warrant authorizing entry, 
may enter during hours of operation the premises, including places of 
storage, of any licensed collector for the purpose of inspecting or 
examining the records, documents, firearms, and ammunition referred to 
in paragraph (a) of this section (1) for ensuring compliance with the 
recordkeeping requirements of this part not more than once during any 
12-month period or (2) when such inspection or examination may be 
required for determining the disposition of one or more particular 
firearms in the course of a bona fide criminal investigation. At the 
election of the licensed collector, the annual inspection permitted by 
this paragraph shall be performed at the ATF office responsible for 
conducting such inspection in closest proximity to the collectors 
premises.
    (d) The inspections and examinations provided by this section do not 
authorize an ATF officer to seize any records or documents other than 
those records or documents constituting material evidence of a violation 
of law. If an ATF officer seizes such records or documents, copies shall 
be provided the licensee within a reasonable time.

[T.D. ATF-270, 53 FR 10492, Mar. 31, 1988; as amended by T.D. ATF-363, 
60 FR 17450, Apr. 6, 1995]



Sec. 478.24  Compilation of State laws and published ordinances.

    (a) The Director shall annually revise and furnish Federal firearms 
licensees with a compilation of State laws and published ordinances 
which are relevant to the enforcement of this part. The Director 
annually revises the compilation and publishes it as ``State Laws and 
Published Ordinances--Firearms'' which is furnished free of charge to 
licensees under this part. Where the compilation has previously been 
furnished to licensees, the Director need only furnish amendments of the 
relevant laws and ordinances to such licensees.
    (b) ``State Laws and Published Ordinances--Firearms'' is 
incorporated by reference in this part. It is ATF Publication 5300.5, 
revised yearly. The current edition is available from the Superintendent 
of Documents, U.S. Government Printing Office, Washington, DC 20402. It 
is also available for inspection at the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at NARA, call 202-741-6030, or go to: http://www.archives.gov/
federal--register/code--of--federal--regulations/ibr--locations.html. 
This incorporation by reference was approved by the Director of the 
Federal Register.

[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988, as amended at 69 FR 18803, 
Apr. 9, 2004]



Sec. 478.25  Disclosure of information.

    The Director of Industry Operations may make available to any 
Federal, State or local law enforcement agency

[[Page 31]]

any information which is obtained by reason of the provisions of the Act 
with respect to the identification of persons prohibited from purchasing 
or receiving firearms or ammunition who have purchased or received 
firearms or ammunition, together with a description of such firearms or 
ammunition. Upon the request of any Federal, State or local law 
enforcement agency, the Director of Industry Operations may provide such 
agency any information contained in the records required to be 
maintained by the Act or this part.

[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988]



Sec. 478.25a  Responses to requests for information.

    Each licensee shall respond immediately to, and in no event later 
than 24 hours after the receipt of, a request by an ATF officer at the 
National Tracing Center for information contained in the records 
required to be kept by this part for determining the disposition of one 
or more firearms in the course of a bona fide criminal investigation. 
The requested information shall be provided orally to the ATF officer 
within the 24-hour period. Verification of the identity and employment 
of National Tracing Center personnel requesting information may be 
established at the time the requested information is provided by 
telephoning the toll-free number 1-800-788-7132 or using the toll-free 
facsimile (FAX) number 1-800-578-7223.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-363, 60 FR 17451, Apr. 6, 1996, as amended by T.D. ATF-396, 63 
FR 12646, Mar. 16, 1998]



Sec. 478.26  Curio and relic determination.

    Any person who desires to obtain a determination whether a 
particular firearm is a curio or relic shall submit a written request, 
in duplicate, for a ruling thereon to the Director. Each such request 
shall be executed under the penalties of perjury and shall contain a 
complete and accurate description of the firearm, and such photographs, 
diagrams, or drawings as may be necessary to enable the Director to make 
a determination. The Director may require the submission of the firearm 
for examination and evaluation. If the submission of the firearm is 
impractical, the person requesting the determination shall so advise the 
Director and designate the place where the firearm will be available for 
examination and evaluation.

[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988]



Sec. 478.27  Destructive device determination.

    The Director shall determine in accordance with 18 U.S.C. 921(a)(4) 
whether a device is excluded from the definition of a destructive 
device. A person who desires to obtain a determination under that 
provision of law for any device which he believes is not likely to be 
used as a weapon shall submit a written request, in triplicate, for a 
ruling thereon to the Director. Each such request shall be executed 
under the penalties of perjury and contain a complete and accurate 
description of the device, the name and address of the manufacturer or 
importer thereof, the purpose of and use for which it is intended, and 
such photographs, diagrams, or drawings as may be necessary to enable 
the Director to make his determination. The Director may require the 
submission to him, of a sample of such device for examination and 
evaluation. If the submission of such device is impracticable, the 
person requesting the ruling shall so advise the Director and designate 
the place where the device will be available for examination and 
evaluation.



Sec. 478.28  Transportation of destructive devices and certain firearms.

    (a) The Director may authorize a person to transport in interstate 
or foreign commerce any destructive device, machine gun, short-barreled 
shotgun, or short-barreled rifle, if he finds that such transportation 
is reasonably necessary and is consistent with public safety and 
applicable State and local law. A person who desires to transport in 
interstate or foreign commerce any such device or weapon shall submit a 
written request so to do, in duplicate, to the Director. The request 
shall contain:
    (1) A complete description and identification of the device or 
weapon to be transported;

[[Page 32]]

    (2) A statement whether such transportation involves a transfer of 
title;
    (3) The need for such transportation;
    (4) The approximate date such transportation is to take place;
    (5) The present location of such device or weapon and the place to 
which it is to be transported;
    (6) The mode of transportation to be used (including, if by common 
or contract carrier, the name and address of such carrier); and
    (7) Evidence that the transportation or possession of such device or 
weapon is not inconsistent with the laws at the place of destination.
    (b) No person shall transport any destructive device, machine gun, 
short-barreled shotgun, or short-barreled rifle in interstate or foreign 
commerce under the provisions of this section until he has received 
specific authorization so to do from the Director. Authorization granted 
under this section does not carry or import relief from any other 
statutory or regulatory provision relating to firearms.
    (c) This section shall not be construed as requiring licensees to 
obtain authorization to transport destructive devices, machine guns, 
short-barreled shotguns, and short-barreled rifles in interstate or 
foreign commerce: Provided, That in the case of a licensed importer, 
licensed manufacturer, or licensed dealer, such a licensee is qualified 
under the National Firearms Act (see also Part 479 of this chapter) and 
this part to engage in the business with respect to the device or weapon 
to be transported, and that in the case of a licensed collector, the 
device or weapon to be transported is a curio or relic.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16385, Apr. 15, 1975, 
and amended by T.D. ATF-138, 48 FR 35399, Aug. 4, 1983]



Sec. 478.29  Out-of-State acquisition of firearms by nonlicensees.

    No person, other than a licensed importer, licensed manufacturer, 
licensed dealer, or licensed collector, shall transport into or receive 
in the State where the person resides (or if a corporation or other 
business entity, where it maintains a place of business) any firearm 
purchased or otherwise obtained by such person outside that State: 
Provided, That the provisions of this section:
    (a) Shall not preclude any person who lawfully acquires a firearm by 
bequest or intestate succession in a State other than his State of 
residence from transporting the firearm into or receiving it in that 
State, if it is lawful for such person to purchase or possess such 
firearm in that State,
    (b) Shall not apply to the transportation or receipt of a rifle or 
shotgun obtained from a licensed manufacturer, licensed importer, 
licensed dealer, or licensed collector in a State other than the 
transferee's State of residence in an over-the-counter transaction at 
the licensee's premises obtained in conformity with the provisions of 
Sec. 478.96(c) and
    (c) Shall not apply to the transportation or receipt of a firearm 
obtained in conformity with the provisions of Sec. Sec. 478.30 and 
478.97.

[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988]



Sec. 478.29a  Acquisition of firearms by nonresidents.

    No person, other than a licensed importer, licensed manufacturer, 
licensed dealer, or licensed collector, who does not reside in any State 
shall receive any firearms unless such receipt is for lawful sporting 
purposes.

[T.D. ATF-363, 60 FR 17451, Apr. 6, 1995]



Sec. 478.30  Out-of-State disposition of firearms by nonlicensees.

    No nonlicensee shall transfer, sell, trade, give, transport, or 
deliver any firearm to any other nonlicensee, who the transferor knows 
or has reasonable cause to believe does not reside in (or if the person 
is a corporation or other business entity, does not maintain a place of 
business in) the State in which the transferor resides: Provided, That 
the provisions of this section:
    (a) shall not apply to the transfer, transportation, or delivery of 
a firearm made to carry out a bequest of a firearm to, or any 
acquisition by intestate succession of a firearm by, a person who is 
permitted to acquire or possess a firearm under the laws of the State of 
his residence; and
    (b) shall not apply to the loan or rental of a firearm to any person 
for

[[Page 33]]

temporary use for lawful sporting purposes.

[T.D. ATF-313, 56 FR 32508, July 17, 1991; 57 FR 1205, Jan. 10, 1992]



Sec. 478.31  Delivery by common or contract carrier.

    (a) No person shall knowingly deliver or cause to be delivered to 
any common or contract carrier for transportation or shipment in 
interstate or foreign commerce to any person other than a licensed 
importer, licensed manufacturer, licensed dealer, or licensed collector, 
any package or other container in which there is any firearm or 
ammunition without written notice to the carrier that such firearm or 
ammunition is being transported or shipped: Provided, That any passenger 
who owns or legally possesses a firearm or ammunition being transported 
aboard any common or contract carrier for movement with the passenger in 
interstate or foreign commerce may deliver said firearm or ammunition 
into the custody of the pilot, captain, conductor or operator of such 
common or contract carrier for the duration of that trip without 
violating any provision of this part.
    (b) No common or contract carrier shall require or cause any label, 
tag, or other written notice to be placed on the outside of any package, 
luggage, or other container indicating that such package, luggage, or 
other container contains a firearm.
    (c) No common or contract carrier shall transport or deliver in 
interstate or foreign commerce any firearm or ammunition with knowledge 
or reasonable cause to believe that the shipment, transportation, or 
receipt thereof would be in violation of any provision of this part: 
Provided, however, That the provisions of this paragraph shall not apply 
in respect to the transportation of firearms or ammunition in in-bond 
shipment under Customs laws and regulations.
    (d) No common or contract carrier shall knowingly deliver in 
interstate or foreign commerce any firearm without obtaining written 
acknowledgement of receipt from the recipient of the package or other 
container in which there is a firearm: Provided, That this paragraph 
shall not apply with respect to the return of a firearm to a passenger 
who places firearms in the carrier's custody for the duration of the 
trip.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16385, Apr. 15, 1975, 
and amended by T.D. ATF-354, 59 FR 7112, Feb. 14, 1994; T.D. ATF-361, 60 
FR 10786, Feb. 27, 1995]



Sec. 478.32  Prohibited shipment, transportation, possession, or 
receipt of firearms and ammunition by certain persons.

    (a) No person may ship or transport any firearm or ammunition in 
interstate or foreign commerce, or receive any firearm or ammunition 
which has been shipped or transported in interstate or foreign commerce, 
or possess any firearm or ammunition in or affecting commerce, who:
    (1) Has been convicted in any court of a crime punishable by 
imprisonment for a term exceeding 1 year,
    (2) Is a fugitive from justice,
    (3) Is an unlawful user of or addicted to any controlled substance 
(as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 
802),
    (4) Has been adjudicated as a mental defective or has been committed 
to a mental institution,
    (5) Being an alien--
    (i) Is illegally or unlawfully in the United States; or
    (ii) Except as provided in paragraph (f) of this section, is a 
nonimmigrant alien: Provided, That the provisions of this paragraph 
(a)(5)(ii) do not apply to any nonimmigrant alien if that alien is-
    (A) Admitted to the United States for lawful hunting or sporting 
purposes or is in possession of a hunting license or permit lawfully 
issued in the United States;
    (B) An official representative of a foreign government who is either 
accredited to the United States Government or the Government's mission 
to an international organization having its headquarters in the United 
States or is en route to or from another country to which that alien is 
accredited. This exception only applies if the firearm or ammunition is 
shipped, transported, possessed, or received in the representative's 
official capacity;
    (C) An official of a foreign government or a distinguished foreign 
visitor

[[Page 34]]

who has been so designated by the Department of State. This exception 
only applies if the firearm or ammunition is shipped, transported, 
possessed, or received in the official's or visitor's official capacity, 
except if the visitor is a private individual who does not have an 
official capacity; or
    (D) A foreign law enforcement officer of a friendly foreign 
government entering the United States on official law enforcement 
business,
    (6) Has been discharged from the Armed Forces under dishonorable 
conditions,
    (7) Having been a citizen of the United States, has renounced 
citizenship,
    (8) Is subject to a court order that--
    (i) Was issued after a hearing of which such person received actual 
notice, and at which such person had an opportunity to participate;
    (ii) Restrains such person from harassing, stalking, or threatening 
an intimate partner of such person or child of such intimate partner or 
person, or engaging in other conduct that would place an intimate 
partner in reasonable fear of bodily injury to the partner or child; and
    (iii)(A) Includes a finding that such person represents a credible 
threat to the physical safety of such intimate partner or child; or
    (B) By its terms explicitly prohibits the use, attempted use, or 
threatened use of physical force against such intimate partner or child 
that would reasonably be expected to cause bodily injury, or
    (9) Has been convicted of a misdemeanor crime of domestic violence.
    (b) No person who is under indictment for a crime punishable by 
imprisonment for a term exceeding one year may ship or transport any 
firearm or ammunition in interstate or foreign commerce or receive any 
firearm or ammunition which has been shipped or transported in 
interstate or foreign commerce.
    (c) Any individual, who to that individual's knowledge and while 
being employed by any person described in paragraph (a) of this section, 
may not in the course of such employment receive, possess, or transport 
any firearm or ammunition in commerce or affecting commerce or receive 
any firearm or ammunition which has been shipped or transported in 
interstate or foreign commerce.
    (d) No person may sell or otherwise dispose of any firearm or 
ammunition to any person knowing or having reasonable cause to believe 
that such person:
    (1) Is under indictment for, or has been convicted in any court of, 
a crime punishable by imprisonment for a term exceeding 1 year,
    (2) Is a fugitive from justice,
    (3) Is an unlawful user of or addicted to any controlled substance 
(as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 
802),
    (4) Has been adjudicated as a mental defective or has been committed 
to a mental institution,
    (5) Being an alien--
    (i) Is illegally or unlawfully in the United States; or
    (ii) Except as provided in paragraph (f) of this section, is a 
nonimmigrant alien: Provided, That the provisions of this paragraph 
(d)(5)(ii) do not apply to any nonimmigrant alien if that alien is-
    (A) Admitted to the United States for lawful hunting or sporting 
purposes or is in possession of a hunting license or permit lawfully 
issued in the United States;
    (B) An official representative of a foreign government who is either 
accredited to the United States Government or the Government's mission 
to an international organization having its headquarters in the United 
States or en route to or from another country to which that alien is 
accredited. This exception only applies if the firearm or ammunition is 
shipped, transported, possessed, or received in the representative's 
official capacity;
    (C) An official of a foreign government or a distinguished foreign 
visitor who has been so designated by the Department of State. This 
exception only applies if the firearm or ammunition is shipped, 
transported, possessed, or received in the official's or visitor's 
official capacity, except if the visitor is a private individual who 
does not have an official capacity; or

[[Page 35]]

    (D) A foreign law enforcement officer of a friendly foreign 
government entering the United States on official law enforcement 
business,
    (6) Has been discharged from the Armed Forces under dishonorable 
conditions,
    (7) Having been a citizen of the United States, has renounced 
citizenship,
    (8) Is subject to a court order that restrains such person from 
harassing, stalking, or threatening an intimate partner of such person 
or child of such intimate partner or person, or engaging in other 
conduct that would place an intimate partner in reasonable fear of 
bodily injury to the partner or child: Provided, That the provisions of 
this paragraph shall only apply to a court order that--
    (i) Was issued after a hearing of which such person received actual 
notice, and at which such person had the opportunity to participate; and
    (ii)(A) Includes a finding that such person represents a credible 
threat to the physical safety of such intimate partner or child; or
    (B) By its terms explicitly prohibits the use, attempted use, or 
threatened use of physical force against such intimate partner or child 
that would reasonably be expected to cause bodily injury, or
    (9) Has been convicted of a misdemeanor crime of domestic violence.
    (e) The actual notice required by paragraphs (a)(8)(i) and (d)(8)(i) 
of this section is notice expressly and actually given, and brought home 
to the party directly, including service of process personally served on 
the party and service by mail. Actual notice also includes proof of 
facts and circumstances that raise the inference that the party received 
notice including, but not limited to, proof that notice was left at the 
party's dwelling house or usual place of abode with some person of 
suitable age and discretion residing therein; or proof that the party 
signed a return receipt for a hearing notice which had been mailed to 
the party. It does not include notice published in a newspaper.
    (f) Pursuant to 18 U.S.C. 922(y)(3), any nonimmigrant alien may 
receive a waiver from the prohibition contained in paragraph (a)(5)(ii) 
of this section, if the Attorney General approves a petition for the 
waiver.

[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988, as amended by T.D. ATF-363, 
60 FR 17451, Apr. 6, 1995; T.D. ATF-391, 62 FR 34639, June 27, 1997; 
T.D. ATF-401, 63 FR 35522, June 30, 1998; T.D. ATF-471, 67 FR 5425, Feb. 
5, 2002]



Sec. 478.33  Stolen firearms and ammunition.

    No person shall transport or ship in interstate or foreign commerce 
any stolen firearm or stolen ammunition knowing or having reasonable 
cause to believe that the firearm or ammunition was stolen, and no 
person shall receive, possess, conceal, store, barter, sell, or dispose 
of any stolen firearm or stolen ammunition, or pledge or accept as 
security for a loan any stolen firearm or stolen ammunition, which is 
moving as, which is a part of, which constitutes, or which has been 
shipped or transported in, interstate or foreign commerce, either before 
or after it was stolen, knowing or having reasonable cause to believe 
that the firearm or ammunition was stolen.

[T.D. ATF-363, 60 FR 17451, Apr. 6, 1995]



Sec. 478.33a  Theft of firearms.

    No person shall steal or unlawfully take or carry away from the 
person or the premises of a person who is licensed to engage in the 
business of importing, manufacturing, or dealing in firearms, any 
firearm in the licensee's business inventory that has been shipped or 
transported in interstate or foreign commerce.

[T.D. ATF-354, 59 FR 7112, Feb. 14, 1994]



Sec. 478.34  Removed, obliterated, or altered serial number.

    No person shall knowingly transport, ship, or receive in interstate 
or foreign commerce any firearm which has had the importer's or 
manufacturer's serial number removed, obliterated, or altered, or 
possess or receive any firearm which has had the importer's or 
manufacturer's serial number removed, obliterated, or altered and has, 
at any time, been shipped or transported in interstate or foreign 
commerce.

[T.D. ATF-313, 56 FR 32508, July 17, 1991]

[[Page 36]]



Sec. 478.35  Skeet, trap, target, and similar shooting activities.

    Licensing and recordkeeping requirements, including permissible 
alternate records, for skeet, trap, target, and similar organized 
activities shall be determined by the Director of Industry Operations on 
a case by case basis.



Sec. 478.36  Transfer or possession of machine guns.

    No person shall transfer or possess a machine gun except:
    (a) A transfer to or by, or possession by or under the authority of, 
the United States, or any department or agency thereof, or a State, or a 
department, agency, or political subdivision thereof. (See Part 479 of 
this chapter); or
    (b) Any lawful transfer or lawful possession of a machine gun that 
was lawfully possessed before May 19, 1986 (See Part 479 of this 
chapter).

[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]



Sec. 478.37  Manufacture, importation and sale of armor piercing 
ammunition.

    No person shall manufacture or import, and no manufacturer or 
importer shall sell or deliver, armor piercing ammunition, except:
    (a) The manufacture or importation, or the sale or delivery by any 
manufacturer or importer, of armor piercing ammunition for the use of 
the United States or any department or agency thereof or any State or 
any department, agency or political subdivision thereof;
    (b) The manufacture, or the sale or delivery by a manufacturer or 
importer, of armor piercing ammunition for the purpose of exportation; 
or
    (c) The sale or delivery by a manufacturer or importer of armor 
piercing ammunition for the purposes of testing or experimentation as 
authorized by the Director under the provisions of Sec. 478.149.

[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]



Sec. 478.38  Transportation of firearms.

    Notwithstanding any other provision of any law or any rule or 
regulation of a State or any political subdivision thereof, any person 
who is not otherwise prohibited by this chapter from transporting, 
shipping, or receiving a firearm shall be entitled to transport a 
firearm for any lawful purpose from any place where such person may 
lawfully possess and carry such firearm to any other place where such 
person may lawfully possess and carry such firearm if, during such 
transportation the firearm is unloaded, and neither the firearm nor any 
ammunition being transported is readily accessible or is directly 
accessible from the passenger compartment of such transporting vehicle: 
Provided, That in the case of a vehicle without a compartment separate 
from the driver's compartment the firearm or ammunition shall be 
contained in a locked container other than the glove compartment or 
console.

[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]



Sec. 478.39  Assembly of semiautomatic rifles or shotguns.

    (a) No person shall assemble a semiautomatic rifle or any shotgun 
using more than 10 of the imported parts listed in paragraph (c) of this 
section if the assembled firearm is prohibited from importation under 
section 925(d)(3) as not being particularly suitable for or readily 
adaptable to sporting purposes.
    (b) The provisions of this section shall not apply to:
    (1) The assembly of such rifle or shotgun for sale or distribution 
by a licensed manufacturer to the United States or any department or 
agency thereof or to any State or any department, agency, or political 
subdivision thereof; or
    (2) The assembly of such rifle or shotgun for the purposes of 
testing or experimentation authorized by the Director under the 
provisions of Sec. 478.151; or
    (3) The repair of any rifle or shotgun which had been imported into 
or assembled in the United States prior to November 30, 1990, or the 
replacement of any part of such firearm.
    (c) For purposes of this section, the term imported parts are:
(1) Frames, receivers, receiver castings, forgings or stampings
(2) Barrels
(3) Barrel extensions
(4) Mounting blocks (trunions)
(5) Muzzle attachments
(6) Bolts
(7) Bolt carriers

[[Page 37]]

(8) Operating rods
(9) Gas pistons
(10) Trigger housings
(11) Triggers
(12) Hammers
(13) Sears
(14) Disconnectors
(15) Buttstocks
(16) Pistol grips
(17) Forearms, handguards
(18) Magazine bodies
(19) Followers
(20) Floorplates

[T.D. ATF-346, 58 FR 40589, July 29, 1993]



Sec. 478.39a  Reporting theft or loss of firearms.

    Each licensee shall report the theft or loss of a firearm from the 
licensee's inventory (including any firearm which has been transferred 
from the licensee's inventory to a personal collection and held as a 
personal firearm for at least 1 year), or from the collection of a 
licensed collector, within 48 hours after the theft or loss is 
discovered. Licensees shall report thefts or losses by telephoning 1-
800-800-3855 (nationwide toll free number) and by preparing ATF Form 
3310.11, Federal Firearms Licensee Theft/Loss Report, in accordance with 
the instructions on the form. The original of the report shall be 
forwarded to the office specified thereon, and Copy 1 shall be retained 
by the licensee as part of the licensee's permanent records. Theft or 
loss of any firearm shall also be reported to the appropriate local 
authorities.

(Approved by the Office of Management and Budget under control number 
1512-0524)

[T.D. ATF-363, 60 FR 17451, Apr. 6, 1995]



Sec. 478.40  Manufacture, transfer, and possession of semiautomatic 
assault weapons.

    (a) Prohibition. No person shall manufacture, transfer, or possess a 
semiautomatic assault weapon.
    (b) Exceptions. The provisions of paragraph (a) of this section 
shall not apply to:
    (1) The possession or transfer of any semiautomatic assault weapon 
otherwise lawfully possessed in the United States under Federal law on 
September 13, 1994;
    (2) Any of the firearms, or replicas or duplicates of the firearms, 
specified in 18 U.S.C. 922, Appendix A, as such firearms existed on 
October 1, 1993;
    (3) Any firearm that--
    (i) Is manually operated by bolt, pump, lever, or slide action;
    (ii) Has been rendered permanently inoperable; or
    (iii) Is an antique firearm;
    (4) Any semiautomatic rifle that cannot accept a detachable magazine 
that holds more than 5 rounds of ammunition;
    (5) Any semiautomatic shotgun that cannot hold more than 5 rounds of 
ammunition in a fixed or detachable magazine;
    (6) The manufacture for, transfer to, or possession by the United 
States or a department or agency of the United States or a State or a 
department, agency, or political subdivision of a State, or a transfer 
to or possession by a law enforcement officer employed by such an entity 
for purposes of law enforcement;
    (7) The transfer to a licensee under title I of the Atomic Energy 
Act of 1954 (42 U.S.C. 2011 et seq.) for purposes of establishing and 
maintaining an on-site physical protection system and security 
organization required by Federal law, or possession by an employee or 
contractor of such licensee on-site for such purposes or off-site for 
purposes of licensee-authorized training or transportation of nuclear 
materials;
    (8) The possession, by an individual who is retired from service 
with a law enforcement agency and is not otherwise prohibited from 
receiving a firearm, of a semiautomatic assault weapon transferred to 
the individual by the agency upon such retirement;
    (9) The manufacture, transfer, or possession of a semiautomatic 
assault weapon by a licensed manufacturer or licensed importer for the 
purposes of testing or experimentation as authorized by the Director 
under the provisions of Sec. 478.153; or
    (10) The manufacture, transfer, or possession of a semiautomatic 
assault weapon by a licensed manufacturer, licensed importer, or 
licensed dealer for the purpose of exportation in compliance with the 
Arms Export Control Act (22 U.S.C. 2778).

[[Page 38]]

    (c) Manufacture and dealing in semiautomatic assault weapons. 
Subject to compliance with the provisions of this part, licensed 
manufacturers and licensed dealers in semiautomatic assault weapons may 
manufacture and deal in such weapons manufactured after September 13, 
1994: Provided, The licensee obtains evidence that the weapons will be 
disposed of in accordance with paragraph (b) of this section. Examples 
of acceptable evidence include the following:
    (1) Contracts between the manufacturer and dealers stating that the 
weapons may only be sold to law enforcement agencies, law enforcement 
officers, or other purchasers specified in paragraph (b) of this 
section;
    (2) Copies of purchase orders submitted to the manufacturer or 
dealer by law enforcement agencies or other purchasers specified in 
paragraph (b) of this section;
    (3) Copies of letters submitted to the manufacturer or dealer by 
government agencies, law enforcement officers, or other purchasers 
specified in paragraph (b) of this section expressing an interest in 
purchasing the semiautomatic assault weapons;
    (4) Letters from dealers to the manufacturer stating that sales will 
only be made to law enforcement agencies, law enforcement officers, or 
other purchasers specified in paragraph (b) of this section; and
    (5) Letters from law enforcement officers purchasing in accordance 
with paragraph (b)(6) of this section and Sec. 478.132.

(Paragraph (c) approved by the Office of Management and Budget under 
control number 1512-0526)

[T.D. ATF-363, 60 FR 17451, Apr. 6, 1995]



Sec. 478.40a  Transfer and possession of large capacity ammunition 
feeding devices.

    (a) Prohibition. No person shall transfer or possess a large 
capacity ammunition feeding device.
    (b) Exceptions. The provisions of paragraph (a) of this section 
shall not apply to:
    (1) The possession or transfer of any large capacity ammunition 
feeding device otherwise lawfully possessed on September 13, 1994;
    (2) The manufacture for, transfer to, or possession by the United 
States or a department or agency of the United States or a State or a 
department, agency, or political subdivision of a State, or a transfer 
to or possession by a law enforcement officer employed by such an entity 
for purposes of law enforcement;
    (3) The transfer to a licensee under title I of the Atomic Energy 
Act of 1954 for purposes of establishing and maintaining an on-site 
physical protection system and security organization required by Federal 
law, or possession by an employee or contractor of such licensee on-site 
for such purposes or off-site for purposes of licensee-authorized 
training or transportation of nuclear materials;
    (4) The possession, by an individual who is retired from service 
with a law enforcement agency and is not otherwise prohibited from 
receiving ammunition, of a large capacity ammunition feeding device 
transferred to the individual by the agency upon such retirement;
    (5) The manufacture, transfer, or possession of any large capacity 
ammunition feeding device by a manufacturer or importer for the purposes 
of testing or experimentation in accordance with Sec. 478.153; or
    (6) The manufacture, transfer, or possession of any large capacity 
ammunition feeding device by a manufacturer or importer for the purpose 
of exportation in accordance with the Arms Export Control Act (22 U.S.C. 
2778).
    (c) Importation, manufacture, and dealing in large capacity 
ammunition feeding devices. Possession and transfer of large capacity 
ammunition feeding devices by persons who manufacture, import, or deal 
in such devices will be presumed to be lawful if such persons maintain 
evidence establishing that the devices are possessed and transferred for 
sale to purchasers specified in paragraph (b) of this section. Examples 
of acceptable evidence include the following:
    (1) Contracts between persons who import or manufacture such devices 
and persons who deal in such devices stating that the devices may only 
be sold to law enforcement agencies or

[[Page 39]]

other purchasers specified in paragraph (b) of this section;
    (2) Copies of purchase orders submitted to persons who manufacture, 
import, or deal in such devices by law enforcement agencies or other 
purchasers specified in paragraph (b) of this section;
    (3) Copies of letters submitted to persons who manufacture, import, 
or deal in such devices by government agencies or other purchasers 
specified in paragraph (b) of this section expressing an interest in 
purchasing the devices;
    (4) Letters from persons who deal in such devices to persons who 
import or manufacture such devices stating that sales will only be made 
to law enforcement agencies or other purchasers specified in paragraph 
(b) of this section; and
    (5) Letters from law enforcement officers purchasing in accordance 
with paragraph (b)(2) of this section and Sec. 478.132.

(Paragraph (c) approved by the Office of Management and Budget under 
control number 1512-0526)

[T.D. ATF-363, 60 FR 17452, Apr. 6, 1995, as amended by T.D. ATF-383, 61 
FR 39321, July 29, 1996]



                           Subpart D_Licenses



Sec. 478.41  General.

    (a) Each person intending to engage in business as an importer or 
manufacturer of firearms or ammunition, or a dealer in firearms shall, 
before commencing such business, obtain the license required by this 
subpart for the business to be operated. Each person who desires to 
obtain a license as a collector of curios or relics may obtain such a 
license under the provisions of this subpart.
    (b) Each person intending to engage in business as a firearms or 
ammunition importer or manufacturer, or dealer in firearms shall file an 
application, with the required fee (see Sec. 478.42), with ATF in 
accordance with the instructions on the form (see Sec. 478.44), and, 
pursuant to Sec. 478.47, receive the license required for such business 
from the Chief, National Licensing Center. Except as provided in Sec. 
478.50, a license must be obtained for each business and each place at 
which the applicant is to do business. A license as an importer or 
manufacturer of firearms or ammunition, or a dealer in firearms shall, 
subject to the provisions of the Act and other applicable provisions of 
law, entitle the licensee to transport, ship, and receive firearms and 
ammunition covered by such license in interstate or foreign commerce and 
to engage in the business specified by the license, at the location 
described on the license, and for the period stated on the license. 
However, it shall not be necessary for a licensed importer or a licensed 
manufacturer to also obtain a dealer's license in order to engage in 
business on the licensed premises as a dealer in the same type of 
firearms authorized by the license to be imported or manufactured. 
Payment of the license fee as an importer or manufacturer of destructive 
devices, ammunition for destructive devices or armor piercing ammunition 
or as a dealer in destructive devices includes the privilege of 
importing or manufacturing firearms other than destructive devices and 
ammunition for other than destructive devices or ammunition other than 
armor piercing ammunition, or dealing in firearms other than destructive 
devices, as the case may be, by such a licensee at the licensed 
premises.
    (c) Each person seeking the privileges of a collector licensed under 
this part shall file an application, with the required fee (see Sec. 
478.42), with ATF in accordance with the instructions on the form (see 
Sec. 478.44), and pursuant to Sec. 478.47, receive from the Chief, 
National Licensing Center, the license covering the collection of curios 
and relics. A separate license may be obtained for each collection 
premises, and such license shall, subject to the provisions of the Act 
and other applicable provisions of law, entitle the licensee to 
transport, ship, receive, and acquire curios and relics in interstate or 
foreign commerce, and to make disposition of curios and relics in 
interstate or foreign commerce, to any other person licensed under the 
provisions of this part, for the period stated on the license.
    (d) The collector license provided by this part shall apply only to 
transactions related to a collector's activity in acquiring, holding or 
disposing of

[[Page 40]]

curios and relics. A collector's license does not authorize the 
collector to engage in a business required to be licensed under the Act 
or this part. Therefore, if the acquisitions and dispositions of curios 
and relics by a collector bring the collector within the definition of a 
manufacturer, importer, or dealer under this part, he shall qualify as 
such. (See also Sec. 478.93 of this part.)

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-270, 53 FR 10494, Mar. 31, 1988; T.D. ATF-290, 
54 FR 53054, Dec. 27, 1989]



Sec. 478.42  License fees.

    Each applicant shall pay a fee for obtaining a firearms license or 
ammunition license, a separate fee being required for each business or 
collecting activity at each place of such business or activity, as 
follows:
    (a) For a manufacturer:
    (1) Of destructive devices, ammunition for destructive devices or 
armor piercing ammunition--$1,000 per year.
    (2) Of firearms other than destructive devices--$50 per year.
    (3) Of ammunition for firearms other than ammunition for destructive 
devices or armor piercing ammunition--$10 per year.
    (b) For an importer:
    (1) Of destructive devices, ammunition for destructive devices or 
armor piercing ammunition--$1,000 per year.
    (2) Of firearms other than destructive devices or ammunition for 
firearms other than destructive devices or ammunition other than armor 
piercing ammunition--$50 per year.
    (c) For a dealer:
    (1) In destructive devices--$1,000 per year.
    (2) Who is not a dealer in destructive devices--$200 for 3 years, 
except that the fee for renewal of a valid license shall be $90 for 3 
years.
    (d) For a collector of curios and relics--$10 per year.

[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988, as amended by T.D. ATF-354, 
59 FR 7112, Feb. 14, 1994]



Sec. 478.43  License fee not refundable.

    No refund of any part of the amount paid as a license fee shall be 
made where the operations of the licensee are, for any reason, 
discontinued during the period of an issued license. However, the 
license fee submitted with an application for a license shall be 
refunded if that application is denied or withdrawn by the applicant 
prior to being acted upon.

[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]



Sec. 478.44  Original license.

    (a)(1) Any person who intends to engage in business as a firearms or 
ammunition importer or manufacturer, or firearms dealer, or who has not 
previously been licensed under the provisions of this part to so engage 
in business, or who has not timely submitted an application for renewal 
of the previous license issued under this part, must file an application 
for license, ATF Form 7 (Firearms), in duplicate, with ATF in accordance 
with the instructions on the form. The application must:
    (i) Be executed under the penalties of perjury and the penalties 
imposed by 18 U.S.C. 924;
    (ii) Include a photograph and fingerprints as required in the 
instructions on the form;
    (iii) If the applicant (including, in the case of a corporation, 
partnership, or association, any individual possessing, directly or 
indirectly, the power to direct or cause the direction of the management 
and policies of the corporation, partnership, or association) is a 
nonimmigrant alien, applicable documentation demonstrating that the 
nonimmigrant alien falls within an exception to or has obtained a waiver 
from the nonimmigrant alien provision (e.g., a hunting license or permit 
lawfully issued in the United States; waiver);
    (iv) Be accompanied by a completed ATF Form 5300.37 (Certification 
of Compliance with State and Local Law) and ATF Form 5300.36 
(Notification of Intent to Apply for a Federal Firearms License); and
    (v) Include the appropriate fee in the form of money order or check 
made

[[Page 41]]

payable to the Bureau of Alcohol, Tobacco and Firearms.
    (2) ATF Forms 7 (Firearms), ATF Forms 5300.37, and ATF Forms 5300.36 
may be obtained by contacting any ATF office.
    (b) Any person who desires to obtain a license as a collector under 
the Act and this part, or who has not timely submitted an application 
for renewal of the previous license issued under this part, shall file 
an application, ATF Form 7CR (Curios and Relics), with ATF in accordance 
with the instructions on the form. If the applicant (including, in the 
case of a corporation, partnership, or association, any individual 
possessing, directly or indirectly, the power to direct or cause the 
direction of the management and policies of the corporation, 
partnership, or association) is a nonimmigrant alien, the application 
must include applicable documentation demonstrating that the 
nonimmigrant alien falls within an exception to or has obtained a waiver 
from the nonimmigrant alien provision (e.g., a hunting license or permit 
lawfully issued in the United States; waiver). The application must be 
executed under the penalties of perjury and the penalties imposed by 18 
U.S.C. 924. The application shall be accompanied by a completed ATF Form 
5300.37 and ATF Form 5300.36 and shall include the appropriate fee in 
the form of a money order or check made payable to the Bureau of 
Alcohol, Tobacco and Firearms. ATF Forms 7CR (Curios and Relics), ATF 
Forms 5300.37, and ATF Forms 5300.36 may be obtained by contacting any 
ATF office.

(Paragraphs (a) and (b) approved by the Office of Management and Budget 
under control number 1512-0570)

[T.D. ATF-363, 60 FR 17453, Apr. 6, 1995, as amended by T.D. ATF-471, 67 
FR 5425, Feb. 5, 2002]



Sec. 478.45  Renewal of license.

    If a licensee intends to continue the business or activity described 
on a license issued under this part during any portion of the ensuing 
year, the licensee shall, unless otherwise notified in writing by the 
Chief, National Licensing Center, execute and file with ATF prior to the 
expiration of the license an application for a license renewal, ATF Form 
8 Part II, accompanied by a completed ATF Form 5300.37 and ATF Form 
5300.36, in accordance with the instructions on the forms, and the 
required fee. If the applicant is a nonimmigrant alien, the application 
must include applicable documentation demonstrating that the 
nonimmigrant alien falls within an exception to or has obtained a waiver 
from the nonimmigrant alien provision (e.g., a hunting license or permit 
lawfully issued in the United States; waiver). The Chief, National 
Licensing Center, may, in writing, require the applicant for license 
renewal to also file completed ATF Form 7 or ATF Form 7CR in the manner 
required by Sec. 478.44. In the event the licensee does not timely file 
an ATF Form 8 Part II, the licensee must file an ATF Form 7 or ATF Form 
7CR as required by Sec. 478.44, and obtain the required license before 
continuing business or collecting activity. If an ATF Form 8 Part II is 
not timely received through the mails, the licensee should so notify the 
Chief, National Licensing Center.

(Approved by the Office of Management and Budget under control number 
1512-0570)

[T.D. ATF-363, 60 FR 17453, Apr. 6, 1995, as amended by T.D. ATF-471, 67 
FR 5426, Feb. 5, 2002]



Sec. 478.46  Insufficient fee.

    If an application is filed with an insufficient fee, the application 
and any fee submitted will be returned to the applicant.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[T.D. ATF-200, 50 FR 10498, Mar. 15, 1985]



Sec. 478.47  Issuance of license.

    (a) Upon receipt of a properly executed application for a license on 
ATF Form 7, ATF Form 7CR, or ATF Form 8 Part II, the Chief, National 
Licensing Center, shall, upon finding through further inquiry or 
investigation, or otherwise, that the applicant is qualified, issue the 
appropriate license. Each license shall bear a serial number and such 
number may be assigned to the licensee to whom issued for so long as the 
licensee maintains continuity of renewal in the same location (State).

[[Page 42]]

    (b) The Chief, National Licensing Center, shall approve a properly 
executed application for license on ATF Form 7, ATF Form 7CR, or ATF 
Form 8 Part II, if:
    (1) The applicant is 21 years of age or over;
    (2) The applicant (including, in the case of a corporation, 
partnership, or association, any individual possessing, directly or 
indirectly, the power to direct or cause the direction of the management 
and policies of the corporation, partnership, or association) is not 
prohibited under the provisions of the Act from shipping or transporting 
in interstate or foreign commerce, or possessing in or affecting 
commerce, any firearm or ammunition, or from receiving any firearm or 
ammunition which has been shipped or transported in interstate or 
foreign commerce;
    (3) The applicant has not willfully violated any of the provisions 
of the Act or this part;
    (4) The applicant has not willfully failed to disclose any material 
information required, or has not made any false statement as to any 
material fact, in connection with his application;
    (5) The applicant has in a State (i) premises from which he conducts 
business subject to license under the Act or from which he intends to 
conduct such business within a reasonable period of time, or (ii) in the 
case of a collector, premises from which he conducts his collecting 
subject to license under the Act or from which he intends to conduct 
such collecting within a reasonable period of time; and
    (6) The applicant has filed an ATF Form 5300.37 (Certification of 
Compliance with State and Local Law) with ATF in accordance with the 
instructions on the form certifying under the penalties of perjury 
that--
    (i) The business to be conducted under the license is not prohibited 
by State or local law in the place where the licensed premises are 
located;
    (ii) Within 30 days after the application is approved the business 
will comply with the requirements of State and local law applicable to 
the conduct of business;
    (iii) The business will not be conducted under the license until the 
requirements of State and local law applicable to the business have been 
met; and
    (iv) The applicant has completed and sent or delivered ATF F 5300.36 
(Notification of Intent to Apply for a Federal Firearms License) to the 
chief law enforcement officer of the locality in which the premises are 
located, which indicates that the applicant intends to apply for a 
Federal firearms license. For purposes of this paragraph, the ``chief 
law enforcement officer'' is the chief of police, the sheriff, or an 
equivalent officer.
    (c) The Chief, National Licensing Center, shall approve or the 
Director of Industry Operations shall deny an application for a license 
within the 60-day period beginning on the date the properly executed 
application was received: Provided, That when an applicant for license 
renewal is a person who is, pursuant to the provisions of Sec. 478.78, 
Sec. 478.143, or Sec. 478.144, conducting business or collecting 
activity under a previously issued license, action regarding the 
application will be held in abeyance pending the completion of the 
proceedings against the applicant's existing license or license 
application, final determination of the applicant's criminal case, or 
final action by the Director on an application for relief submitted 
pursuant to Sec. 478.144, as the case may be.
    (d) When the Director of Industry Operations or the Chief, National 
Licensing Center fails to act on an application for a license within the 
60-day period prescribed by paragraph (c) of this section, the applicant 
may file an action under section 1361 of title 28, United States Code, 
to compel ATF to act upon the application.

(Paragraph (b)(6) approved by the Office of Management and Budget under 
control numbers 1512-0522 and 1512-0523)

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-135, 48 FR 24068, May 31, 1983; T.D. ATF-241, 51 
FR 39619, Oct. 29, 1986; T.D. ATF-270, 53 FR 10495, Mar. 31, 1988; T.D. 
ATF-290, 54 FR 53054, Dec. 27, 1989; T.D. ATF-363, 60 FR 17453, Apr. 6, 
1995]

[[Page 43]]



Sec. 478.48  Correction of error on license.

    (a) Upon receipt of a license issued under the provisions of this 
part, each licensee shall examine same to ensure that the information 
contained thereon is accurate. If the license is incorrect, the licensee 
shall return the license to the Chief, National Licensing Center, with a 
statement showing the nature of the error. The Chief, National Licensing 
Center, shall correct the error, if the error was made in his office, 
and return the license. However, if the error resulted from information 
contained in the licensee's application for the license, the Chief, 
National Licensing Center, shall require the licensee to file an amended 
application setting forth the correct information and a statement 
explaining the error contained in the application. Upon receipt of the 
amended application and a satisfactory explanation of the error, the 
Chief, National Licensing Center, shall make the correction on the 
license and return same to the licensee.
    (b) When the Chief, National Licensing Center, finds through any 
means other than notice from the licensee that an incorrect license has 
been issued, the Chief, National Licensing Center, may require the 
holder of the incorrect license to (1) return the license for 
correction, and (2) if the error resulted from information contained in 
the licensee's application for the license, the Chief, National 
Licensing Center, shall require the licensee to file an amended 
application setting forth the correct information, and a statement 
explaining the error contained in the application. The Chief, National 
Licensing Center, then shall make the correction on the license and 
return same to the licensee.

[33 FR 18555, Dec. 14, 1968, unless otherwise noted. Redesignated at 40 
FR 16835, Apr. 15, 1975, and amended by T.D. ATF-290, 54 FR 53054, Dec. 
27, 1989]



Sec. 478.49  Duration of license.

    The license entitles the person to whom issued to engage in the 
business or activity specified on the license, within the limitations of 
the Act and the regulations contained in this part, for a three year 
period, unless terminated sooner.

[T.D. ATF-270, 53 FR 10495, Mar. 31, 1988]



Sec. 478.50  Locations covered by license.

    The license covers the class of business or the activity specified 
in the license at the address specified therein. A separate license must 
be obtained for each location at which a firearms or ammunition business 
or activity requiring a license under this part is conducted except:
    (a) No license is required to cover a separate warehouse used by the 
licensee solely for storage of firearms or ammunition if the records 
required by this part are maintained at the licensed premises served by 
such warehouse;
    (b) A licensed collector may acquire curios and relics at any 
location, and dispose of curios or relics to any licensee or to other 
persons who are residents of the State where the collector's license is 
held and the disposition is made;
    (c) A licensee may conduct business at a gun show pursuant to the 
provision of Sec. 478.100; or
    (d) A licensed importer, manufacturer, or dealer may engage in the 
business of dealing in curio or relic firearms with another licensee at 
any location pursuant to the provisions of Sec. 478.100.

[T.D. ATF-191, 49 FR 46890, Nov. 29, 1984, as amended by T.D. ATF-401, 
63 FR 35523, June 30, 1998]



Sec. 478.51  License not transferable.

    Licenses issued under this part are not transferable. In the event 
of the lease, sale, or other transfer of the operations authorized by 
the license, the successor must obtain the license required by this part 
prior to commencing such operations. However, for rules on right of 
succession, see Sec. 478.56.



Sec. 478.52  Change of address.

    (a) Licensees may during the term of their current license remove 
their business or activity to a new location at which they intend 
regularly to carry on such business or activity by filing an Application 
for an Amended Federal Firearms License, ATF Form 5300.38, in

[[Page 44]]

duplicate, not less than 30 days prior to such removal with the Chief, 
National Licensing Center. The ATF Form 5300.38 shall be completed in 
accordance with the instructions on the form. The application must be 
executed under the penalties of perjury and penalties imposed by 18 
U.S.C. 924. The application shall be accompanied by the licensee's 
original license. The Chief, National Licensing Center, may, in writing, 
require the applicant for an amended license to also file completed ATF 
Form 7 or ATF Form 7CR, or portions thereof, in the manner required by 
Sec. 478.44.
    (b) Upon receipt of a properly executed application for an amended 
license, the Chief, National Licensing Center, shall, upon finding 
through further inquiry or investigation, or otherwise, that the 
applicant is qualified at the new location, issue the amended license, 
and return it to the applicant. The license shall be valid for the 
remainder of the term of the original license. The Chief, National 
Licensing Center, shall, if the applicant is not qualified, refer the 
application for amended license to the Director of Industry Operations 
for denial in accordance with Sec. 478.71.

(Approved by the Office of Management and Budget under control number 
1512-0525)

[T.D. ATF-363, 60 FR 17453, Apr. 6, 1995]



Sec. 478.53  Change in trade name.

    A licensee continuing to conduct business at the location shown on 
his license is not required to obtain a new license by reason of a mere 
change in trade name under which he conducts his business: Provided, 
That such licensee furnishes his license for endorsement of such change 
to the Chief, National Licensing Center within 30 days from the date the 
licensee begins his business under the new trade name.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-290, 
54 FR 53055, Dec. 27, 1989]



Sec. 478.54  Change of control.

    In the case of a corporation or association holding a license under 
this part, if actual or legal control of the corporation or association 
changes, directly or indirectly, whether by reason of change in stock 
ownership or control (in the licensed corporation or in any other 
corporation), by operations of law, or in any other manner, the licensee 
shall, within 30 days of such change, give written notification thereof, 
executed under the penalties of perjury, to the Chief, National 
Licensing Center. Upon expiration of the license, the corporation or 
association must file a Form 7 (Firearms) as required by Sec. 478.44.

[33 FR 18555, Dec. 14, 1968, unless otherwise noted. Redesignated at 40 
FR 16835, Apr. 15, 1975, and amended by T.D. ATF-290, 54 FR 53054, Dec. 
27, 1989]



Sec. 478.55  Continuing partnerships.

    Where, under the laws of the particular State, the partnership is 
not terminated on death or insolvency of a partner, but continues until 
the winding up of the partnership affairs is completed, and the 
surviving partner has the exclusive right to the control and possession 
of the partnership assets for the purpose of liquidation and settlement, 
such surviving partner may continue to operate the business under the 
license of the partnership. If such surviving partner acquires the 
business on completion of the settlement of the partnership, he shall 
obtain a license in his own name from the date of acquisition, as 
provided in Sec. 478.44. The rule set forth in this section shall also 
apply where there is more than one surviving partner.



Sec. 478.56  Right of succession by certain persons.

    (a) Certain persons other than the licensee may secure the right to 
carry on the same firearms or ammunition business at the same address 
shown on, and for the remainder of the term of, a current license. Such 
persons are:
    (1) The surviving spouse or child, or executor, administrator, or 
other legal representative of a deceased licensee; and
    (2) A receiver or trustee in bankruptcy, or an assignee for benefit 
of creditors.
    (b) In order to secure the right provided by this section, the 
person or persons continuing the business shall furnish the license for 
that business for

[[Page 45]]

endorsement of such succession to the Chief, National Licensing Center, 
within 30 days from the date on which the successor begins to carry on 
the business.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-290, 
54 FR 53055, Dec. 27, 1989]



Sec. 478.57  Discontinuance of business.

    (a) Where a firearm or ammunition business is either discontinued or 
succeeded by a new owner, the owner of the business discontinued or 
succeeded shall within 30 days thereof furnish to the Chief, National 
Licensing Center notification of the discontinuance or succession. (See 
also Sec. 478.127.)
    (b) Since section 922(v), Title 18, U.S.C., makes it unlawful to 
transfer or possess a semiautomatic assault weapon, except as provided 
in the law, any licensed manufacturer, licensed importer, or licensed 
dealer intending to discontinue business shall, prior to going out of 
business, transfer in compliance with the provisions of this part any 
semiautomatic assault weapon manufactured or imported after September 
13, 1994, to a person specified in Sec. 478.40(b), or, subject to the 
provisions of Sec. Sec. 478.40(c) and 478.132, a licensed manufacturer, 
a licensed importer, or a licensed dealer.
    (c) Since section 922(w), Title 18, U.S.C., makes it unlawful to 
transfer or possess a large capacity ammunition feeding device, except 
as provided in the law, any person who manufactures, imports, or deals 
in such devices and who intends to discontinue business shall, prior to 
going out of business, transfer in compliance with the provisions of 
this part any large capacity ammunition feeding device manufactured 
after September 13, 1994, to a person specified in Sec. 478.40a(b), or, 
subject to the provisions of Sec. Sec. 478.40a(c) and 478.132, a person 
who manufactures, imports, or deals in such devices.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-290, 
54 FR 53055, Dec. 27, 1989; T.D. ATF-363, 60 FR 17453, Apr. 6, 1995; 
T.D. ATF-383, 61 FR 39321, July 29, 1996]



Sec. 478.58  State or other law.

    A license issued under this part confers no right or privilege to 
conduct business or activity contrary to State or other law. The holder 
of such a license is not by reason of the rights and privileges granted 
by that license immune from punishment for operating a firearm or 
ammunition business or activity in violation of the provisions of any 
State or other law. Similarly, compliance with the provisions of any 
State or other law affords no immunity under Federal law or regulations.



Sec. 478.59  Abandoned application.

    Upon receipt of an incomplete or improperly executed application on 
ATF form 7 (5310.12), or ATF Form 8 (5310.11) Part II, the applicant 
shall be notified of the deficiency in the application. If the 
application is not corrected and returned within 30 days following the 
date of notification, the application shall be considered as having been 
abandoned and the license fee returned.

[T.D. ATF-135, 48 FR 24068, May 31, 1983]



Sec. 478.60  Certain continuances of business.

    A licensee who furnishes his license to the Chief, National 
Licensing Center for correction or endorsement in compliance with the 
provisions contained in this subpart may continue his operations while 
awaiting its return.

[33 FR 18555, Dec. 14, 1968, unless otherwise noted. Redesignated at 40 
FR 16835, Apr. 15, 1975, and amended by T.D. ATF-290, 54 FR 53054, Dec. 
27, 1989]



                      Subpart E_License Proceedings



Sec. 478.71  Denial of an application for license.

    Whenever the Director of Industry Operations has reason to believe 
that an applicant is not qualified to receive a license under the 
provisions of Sec. 478.47, he may issue a notice of denial, on Form 
4498, to the applicant. The notice shall set forth the matters of fact 
and law relied upon in determining that the application should be 
denied, and shall afford the applicant 15 days from the date of receipt 
of the notice in which to request a hearing to review the denial. If no 
request for a hearing

[[Page 46]]

is filed within such time, the application shall be disapproved and a 
copy, so marked, shall be returned to the applicant.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-270, 53 FR 10495, Mar. 31, 1988]



Sec. 478.72  Hearing after application denial.

    If the applicant for an original or renewal license desires a 
hearing to review the denial of his application, he shall file a request 
therefor, in duplicate, with the Director of Industry Operations within 
15 days after receipt of the notice of denial. The request should 
include a statement of the reasons therefor. On receipt of the request, 
the Director of Industry Operations shall, as expeditiously as possible, 
make the necessary arrangements for the hearing and advise the applicant 
of the date, time, location, and the name of the officer before whom the 
hearing will be held. Such notification shall be made not less than 10 
days in advance of the date set for the hearing. On conclusion of the 
hearing and consideration of all relevant facts and circumstances 
presented by the applicant or his representative, the Director of 
Industry Operations shall render his decision confirming or reversing 
the denial of the application. If the decision is that the denial should 
stand, a certified copy of the Director of Industry Operations findings 
and conclusions shall be furnished to the applicant with a final notice 
of denial, Form 4501. A copy of the application, marked ``Disapproved,'' 
will be returned to the applicant. If the decision is that the license 
applied for should be issued, the applicant shall be so notified, in 
writing, and the license shall be issued as provided by Sec. 478.47.



Sec. 478.73  Notice of revocation, suspension, or imposition of civil 
fine.

    (a) Basis for action. Whenever the Director of Industry Operations 
has reason to believe that a licensee has willfully violated any 
provision of the Act or this part, a notice of revocation of the 
license, ATF Form 4500, may be issued. In addition, a notice of 
revocation, suspension, or imposition of a civil fine may be issued on 
ATF Form 4500 whenever the Director of Industry Operations has reason to 
believe that a licensee has knowingly transferred a firearm to an 
unlicensed person and knowingly failed to comply with the requirements 
of 18 U.S.C. 922(t)(1) with respect to the transfer and, at the time 
that the transferee most recently proposed the transfer, the national 
instant criminal background check system was operating and information 
was available to the system demonstrating that the transferee's receipt 
of a firearm would violate 18 U.S.C. 922(g) or 922(n) or State law.
    (b) Issuance of notice. The notice shall set forth the matters of 
fact constituting the violations specified, dates, places, and the 
sections of law and regulations violated. The Director of Industry 
Operations shall afford the licensee 15 days from the date of receipt of 
the notice in which to request a hearing prior to suspension or 
revocation of the license, or imposition of a civil fine. If the 
licensee does not file a timely request for a hearing, the Director of 
Industry Operations shall issue a final notice of suspension or 
revocation and/or imposition of a civil fine on ATF Form 4501, as 
provided in Sec. 478.74.

[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998]



Sec. 478.74  Request for hearing after notice of suspension, revocation, 
or imposition of civil fine.

    If a licensee desires a hearing after receipt of a notice of 
suspension or revocation of a license, or imposition of a civil fine, 
the licensee shall file a request, in duplicate, with the Director of 
Industry Operations within 15 days after receipt of the notice of 
suspension or revocation of a license, or imposition of a civil fine. On 
receipt of such request, the Director of Industry Operations shall, as 
expeditiously as possible, make necessary arrangements for the hearing 
and advise the licensee of the date, time, location and the name of the 
officer before whom the hearing will be held. Such notification shall be 
made no less than 10 days in advance of the date set for the hearing. On 
conclusion of the hearing and consideration of all the relevant 
presentations made by the licensee or the licensee's representative, the 
Director of Industry Operations shall render a decision and

[[Page 47]]

shall prepare a brief summary of the findings and conclusions on which 
the decision is based. If the decision is that the license should be 
revoked, or, in actions under 18 U.S.C. 922(t)(5), that the license 
should be revoked or suspended, and/or that a civil fine should be 
imposed, a certified copy of the summary shall be furnished to the 
licensee with the final notice of revocation, suspension, or imposition 
of a civil fine on ATF Form 4501. If the decision is that the license 
should not be revoked, or in actions under 18 U.S.C. 922(t)(5), that the 
license should not be revoked or suspended, and a civil fine should not 
be imposed, the licensee shall be notified in writing.

[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998]



Sec. 478.75  Service on applicant or licensee.

    All notices and other documents required to be served on an 
applicant or licensee under this subpart shall be served by certified 
mail or by personal delivery. Where service is by certified mail, a 
signed duplicate original copy of the formal document shall be mailed, 
with return receipt requested, to the applicant or licensee at the 
address stated in his application or license, or at his last known 
address. Where service is by personal delivery, a signed duplicate 
original copy of the formal document shall be delivered to the applicant 
or licensee, or, in the case of a corporation, partnership, or 
association, by delivering it to an officer, manager, or general agent 
thereof, or to its attorney of record.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and further redesignated by T.D. ATF-241, 51 FR 39619, Oct. 29, 1986; 
T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]



Sec. 478.76  Representation at a hearing.

    An applicant or licensee may be represented by an attorney, 
certified public accountant, or other person recognized to practice 
before the Bureau of Alcohol, Tobacco and Firearms as provided in 31 CFR 
Part 8 (Practice Before the Bureau of Alcohol, Tobacco and Firearms), if 
he has otherwise complied with the applicable requirements of 26 CFR 
601.521 through 601.527 (conference and practice requirements for 
alcohol, tobacco, and firearms activities) of this chapter. The Director 
of Industry Operations may be represented in proceedings by an attorney 
in the office of the Assistant Chief Counsel or Division Counsel who is 
authorized to execute and file motions, briefs and other papers in the 
proceeding, on behalf of the Director of Industry Operations, in his own 
name as ``Attorney for the Government.''

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-92, 46 
FR 46916, Sept. 23, 1981. Further redesignated by T.D. ATF-241, 51 FR 
39619, Oct. 29, 1986; T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]



Sec. 478.77  Designated place of hearing.

    The designated place of the hearing shall be a location convenient 
to the aggrieved party.

[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]



Sec. 478.78  Operations by licensee after notice.

    In any case where denial, suspension, or revocation proceedings are 
pending before the Bureau of Alcohol, Tobacco and Firearms, or notice of 
denial, suspension, or revocation has been served on the licensee and he 
has filed timely request for a hearing, the license in the possession of 
the licensee shall remain in effect even though such license has 
expired, or the suspension or revocation date specified in the notice of 
revocation on Form 4500 served on the licensee has passed: Provided, 
That with respect to a license that has expired, the licensee has timely 
filed an application for the renewal of his license. If a licensee is 
dissatisfied with a posthearing decision revoking or suspending the 
license or denying the application or imposing a civil fine, as the case 
may be, he may, pursuant to 18 U.S.C. 923(f)(3), within 60 days after 
receipt of the final notice denying the application or revoking or 
suspending the license or imposing a civil fine, file a petition for 
judicial review of such action. Such petition should be filed with the 
U.S. district court for the district in which the applicant or licensee 
resides or has his principal place of business. In such case, when the 
Director of Industry Operations finds that justice so requires, he may 
postpone

[[Page 48]]

the effective date of suspension or revocation of a license or authorize 
continued operations under the expired license, as applicable, pending 
judicial review.

[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998]



                      Subpart F_Conduct of Business



Sec. 478.91  Posting of license.

    Any license issued under this part shall be kept posted and kept 
available for inspection on the premises covered by the license.



Sec. 478.92  How must licensed manufacturers and licensed importers 

identify firearms, armor piercing ammunition, and large capacity 
ammunition feeding 
          devices?

    (a)(1) Firearms. You, as a licensed manufacturer or licensed 
importer of firearms, must legibly identify each firearm manufactured or 
imported as follows:
    (i) By engraving, casting, stamping (impressing), or otherwise 
conspicuously placing or causing to be engraved, cast, stamped 
(impressed) or placed on the frame or receiver thereof an individual 
serial number. The serial number must be placed in a manner not 
susceptible of being readily obliterated, altered, or removed, and must 
not duplicate any serial number placed by you on any other firearm. For 
firearms manufactured or imported on and after January 30, 2002, the 
engraving, casting, or stamping (impressing) of the serial number must 
be to a minimum depth of .003 inch and in a print size no smaller than 
\1/16\ inch; and
    (ii) By engraving, casting, stamping (impressing), or otherwise 
conspicuously placing or causing to be engraved, cast, stamped 
(impressed) or placed on the frame, receiver, or barrel thereof certain 
additional information. This information must be placed in a manner not 
susceptible of being readily obliterated, altered, or removed. For 
firearms manufactured or imported on and after January 30, 2002, the 
engraving, casting, or stamping (impressing) of this information must be 
to a minimum depth of .003 inch. The additional information includes:
    (A) The model, if such designation has been made;
    (B) The caliber or gauge;
    (C) Your name (or recognized abbreviation) and also, when 
applicable, the name of the foreign manufacturer;
    (D) In the case of a domestically made firearm, the city and State 
(or recognized abbreviation thereof) where you as the manufacturer 
maintain your place of business; and
    (E) In the case of an imported firearm, the name of the country in 
which it was manufactured and the city and State (or recognized 
abbreviation thereof) where you as the importer maintain your place of 
business. For additional requirements relating to imported firearms, see 
Customs regulations at 19 CFR part 134.
    (2) Firearm frames or receivers. A firearm frame or receiver that is 
not a component part of a complete weapon at the time it is sold, 
shipped, or otherwise disposed of by you must be identified as required 
by this section.
    (3) Special markings for semiautomatic assault weapons, effective 
July 5, 1995. In the case of any semiautomatic assault weapon 
manufactured after September 13, 1994, you must mark the frame or 
receiver ``RESTRICTED LAW ENFORCEMENT/GOVERNMENT USE ONLY'' or, in the 
case of weapons manufactured for export, ``FOR EXPORT ONLY,'' in a 
manner not susceptible of being readily obliterated, altered, or 
removed. For weapons manufactured or imported on and after January 30, 
2002, the engraving, casting, or stamping (impressing) of the special 
markings prescribed in this paragraph (a)(3) must be to a minimum depth 
of .003 inch.
    (4) Exceptions. (i) Alternate means of identification. The Director 
may authorize other means of identification upon receipt of a letter 
application from you, submitted in duplicate, showing that such other 
identification is reasonable and will not hinder the effective 
administration of this part.
    (ii) Destructive devices. In the case of a destructive device, the 
Director may authorize other means of identifying that weapon upon 
receipt of a letter application from you, submitted in duplicate, 
showing that engraving, casting, or stamping (impressing) such a weapon 
would be dangerous or impracticable.

[[Page 49]]

    (iii) Machine guns, silencers, and parts. Any part defined as a 
machine gun, firearm muffler, or firearm silencer in Sec. 478.11, that 
is not a component part of a complete weapon at the time it is sold, 
shipped, or otherwise disposed of by you, must be identified as required 
by this section. The Director may authorize other means of 
identification of parts defined as machine guns other than frames or 
receivers and parts defined as mufflers or silencers upon receipt of a 
letter application from you, submitted in duplicate, showing that such 
other identification is reasonable and will not hinder the effective 
administration of this part.
    (5) Measurement of height and depth of markings. The depth of all 
markings required by this section will be measured from the flat surface 
of the metal and not the peaks or ridges. The height of serial numbers 
required by paragraph (a)(1)(i) of this section will be measured as the 
distance between the latitudinal ends of the character impression 
bottoms (bases).
    (b) Armor piercing ammunition--(1) Marking of ammunition. Each 
licensed manufacturer or licensed importer of armor piercing ammunition 
shall identify such ammunition by means of painting, staining or dying 
the exterior of the projectile with an opaque black coloring. This 
coloring must completely cover the point of the projectile and at least 
50 percent of that portion of the projectile which is visible when the 
projectile is loaded into a cartridge case.
    (2) Labeling of packages. Each licensed manufacturer or licensed 
importer of armor piercing ammunition shall clearly and conspicuously 
label each package in which armor piercing ammunition is contained, 
e.g., each box, carton, case, or other container. The label shall 
include the words ``ARMOR PIERCING'' in block letters at least \1/4\ 
inch in height. The lettering shall be located on the exterior surface 
of the package which contains information concerning the caliber or 
gauge of the ammunition. There shall also be placed on the same surface 
of the package in block lettering at least \1/8\ inch in height the 
words ``FOR GOVERNMENTAL ENTITIES OR EXPORTATION ONLY.'' The statements 
required by this subparagraph shall be on a contrasting background.
    (c) Large capacity ammunition feeding devices manufactured after 
September 13, 1994. (1) Each person who manufactures or imports any 
large capacity ammunition feeding device manufactured after September 
13, 1994, shall legibly identify each such device with a serial number. 
Such person may use the same serial number for all large capacity 
ammunition feeding devices produced.
    (i) Additionally, in the case of a domestically made large capacity 
ammunition feeding device, such device shall be marked with the name, 
city and State (or recognized abbreviation thereof) of the manufacturer;
    (ii) And in the case of an imported large capacity ammunition 
feeding device, such device shall be marked:
    (A) With the name of the manufacturer, country of origin, and,
    (B) Effective July 5, 1995, the name, city and State (or recognized 
abbreviation thereof) of the importer.
    (iii) Further, large capacity ammunition feeding devices 
manufactured after September 13, 1994, shall be marked ``RESTRICTED LAW 
ENFORCEMENT/GOVERNMENT USE ONLY'' or, in the case of devices 
manufactured or imported for export, effective July 5, 1995, ``FOR 
EXPORT ONLY.''
    (2) All markings required by this paragraph (c) shall be cast, 
stamped, or engraved on the exterior of the device. In the case of a 
magazine, the markings shall be placed on the magazine body.
    (3) Exceptions--(i) Metallic links. Persons who manufacture or 
import metallic links for use in the assembly of belted ammunition are 
only required to place the identification marks prescribed in paragraph 
(c)(1) of this section on the containers used for the packaging of the 
links.
    (ii) Alternate means of identification. The Director may authorize 
other means of identifying large capacity ammunition feeding devices 
upon receipt of a letter application, in duplicate, from the 
manufacturer or importer showing that such other identification is 
reasonable and will not

[[Page 50]]

hinder the effective administration of this part.

(Approved by the Office of Management and Budget under control number 
1512-0550)

[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988, as amended by T.D. ATF-363, 
60 FR 17454, Apr. 6, 1995; T.D. ATF-383, 61 FR 39321, July 29, 1996; 
T.D. ATF-396, 63 FR 12646, Mar. 16, 1998; T.D. ATF-461, 66 FR 40600, 
Aug. 3, 2001]



Sec. 478.93  Authorized operations by a licensed collector.

    The license issued to a collector of curios or relics under the 
provisions of this part shall cover only transactions by the licensed 
collector in curios and relics. The collector's license is of no force 
or effect and a licensed collector is of the same status under the Act 
and this part as a nonlicensee with respect to (a) any acquisition or 
disposition of firearms other than curios or relics, or any 
transportation, shipment, or receipt of firearms other than curios or 
relics in interstate or foreign commerce, and (b) any transaction with a 
nonlicensee involving any firearm other than a curio or relic. (See also 
Sec. 478.50.) A collectors license is not necessary to receive or 
dispose of ammunition, and a licensed collector is not precluded by law 
from receiving or disposing of armor piercing ammunition. However, a 
licensed collector may not dispose of any ammunition to a person 
prohibited from receiving or possessing ammunition (see Sec. 
478.99(c)). Any licensed collector who disposes of armor piercing 
ammunition must record the disposition as required by Sec. 478.125 (a) 
and (b).

[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]



Sec. 478.94  Sales or deliveries between licensees.

    A licensed importer, licensed manufacturer, or licensed dealer 
selling or otherwise disposing of firearms, and a licensed collector 
selling or otherwise disposing of curios or relics, to another licensee 
shall verify the identity and licensed status of the transferee prior to 
making the transaction. Verification shall be established by the 
transferee furnishing to the transferor a certified copy of the 
transferee's license and by such other means as the transferor deems 
necessary: Provided, That it shall not be required (a) for a transferee 
who has furnished a certified copy of its license to a transferor to 
again furnish such certified copy to that transferor during the term of 
the transferee's current license, (b) for a licensee to furnish a 
certified copy of its license to another licensee if a firearm is being 
returned either directly or through another licensee to such licensee 
and (c) for licensees of multilicensed business organizations to furnish 
certified copies of their licenses to other licensed locations operated 
by such organization: Provided further, That a multilicensed business 
organization may furnish to a transferor, in lieu of a certified copy of 
each license, a list, certified to be true, correct and complete, 
containing the name, address, license number, and the date of license 
expiration of each licensed location operated by such organization, and 
the transferor may sell or otherwise dispose of firearms as provided by 
this section to any licensee appearing on such list without requiring a 
certified copy of a license therefrom. A transferor licensee who has the 
certified information required by this section may sell or dispose of 
firearms to a licensee for not more than 45 days following the 
expiration date of the transferee's license.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]



Sec. 478.95  Certified copy of license.

    The license furnished to each person licensed under the provisions 
of this part contains a purchasing certification statement. This 
original license may be reproduced and the reproduction then certified 
by the licensee for use pursuant to Sec. 178.94. If the licensee 
desires an additional copy of the license for certification (instead of 
making a reproduction of the original license), the licensee may submit 
a request, in writing, for a certified copy or copies of the license to 
the Chief, National Licensing Center. The request must set forth the 
name, trade name (if any) and address of the licensee, and the number of 
license copies desired. There is a charge of $1 for each copy. The fee 
paid for copies of the license must accompany the request for copies.

[[Page 51]]

The fee may be paid by (a) cash, or (b) money order or check made 
payable to the Bureau of Alcohol, Tobacco and Firearms.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-270, 53 FR 10497, Mar. 31, 1988, as amended by T.D. ATF-290, 
54 FR 53055, Dec. 27, 1989]



Sec. 478.96  Out-of-State and mail order sales.

    (a) The provisions of this section shall apply when a firearm is 
purchased by or delivered to a person not otherwise prohibited by the 
Act from purchasing or receiving it.
    (b) A licensed importer, licensed manufacturer, or licensed dealer 
may sell a firearm that is not subject to the provisions of Sec. 
478.102(a) to a nonlicensee who does not appear in person at the 
licensee's business premises if the nonlicensee is a resident of the 
same State in which the licensee's business premises are located, and 
the nonlicensee furnishes to the licensee the firearms transaction 
record, Form 4473, required by Sec. 478.424. The nonlicensee shall 
attach to such record a true copy of any permit or other information 
required pursuant to any statute of the State and published ordinance 
applicable to the locality in which he resides. The licensee shall prior 
to shipment or delivery of the firearm, forward by registered or 
certified mail (return receipt requested) a copy of the record, Form 
4473, to the chief law enforcement officer named on such record, and 
delay shipment or delivery of the firearm for a period of at least 7 
days following receipt by the licensee of the return receipt evidencing 
delivery of the copy of the record to such chief law enforcement 
officer, or the return of the copy of the record to him due to the 
refusal of such chief law enforcement officer to accept same in 
accordance with U.S. Postal Service regulations. The original Form 4473, 
and evidence of receipt or rejection of delivery of the copy of the Form 
4473 sent to the chief law enforcement officer shall be retained by the 
licensee as a part of the records required of him to be kept under the 
provisions of subpart H of this part.
    (c)(1) A licensed importer, licensed manufacturer, or licensed 
dealer may sell or deliver a rifle or shotgun, and a licensed collector 
may sell or deliver a rifle or shotgun that is a curio or relic to a 
nonlicensed resident of a State other than the State in which the 
licensee's place of business is located if--
    (i) The purchaser meets with the licensee in person at the 
licensee's premises to accomplish the transfer, sale, and delivery of 
the rifle or shotgun;
    (ii) The licensed importer, licensed manufacturer, or licensed 
dealer complies with the provisions of Sec. 478.102;
    (iii) The purchaser furnishes to the licensed importer, licensed 
manufacturer, or licensed dealer the firearms transaction record, Form 
4473, required by Sec. 478.124; and
    (iv) The sale, delivery, and receipt of the rifle or shotgun fully 
comply with the legal conditions of sale in both such States.
    (2) For purposes of paragraph (c) of this section, any licensed 
manufacturer, licensed importer, or licensed dealer is presumed, in the 
absence of evidence to the contrary, to have had actual knowledge of the 
State laws and published ordinances of both such States.

(Approved by the Office of Management and Budget under control number 
1512-0130)

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-241, 
51 FR 39620, Oct. 29, 1986; T.D. ATF-270, 53 FR 10497, Mar. 31, 1988; 
T.D. ATF-354, 59 FR 7112, Feb. 14, 1994; T.D. ATF-415, 63 FR 58278, Oct. 
29, 1998]



Sec. 478.97  Loan or rental of firearms.

    (a) A licensee may lend or rent a firearm to any person for 
temporary use off the premises of the licensee for lawful sporting 
purposes: Provided, That the delivery of the firearm to such person is 
not prohibited by Sec. 478.99(b) or Sec. 478.99(c), the licensee 
complies with the requirements of Sec. 478.102, and the licensee 
records such loan or rental in the records required to be kept by him 
under Subpart H of this part.
    (b) A club, association, or similar organization temporarily 
furnishing firearms (whether by loan, rental, or otherwise) to 
participants in a skeet, trap, target, or similar shooting activity for

[[Page 52]]

use at the time and place such activity is held does not, unattended by 
other circumstances, cause such club, association, or similar 
organization to be engaged in the business of a dealer in firearms or as 
engaging in firearms transactions. Therefore, licensing and 
recordkeeping requirements contained in this part pertaining to firearms 
transactions would not apply to this temporary furnishing of firearms 
for use on premises on which such an activity is conducted.

[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998]



Sec. 478.98  Sales or deliveries of destructive devices and certain 
firearms.

    The sale or delivery by a licensee of any destructive device, 
machine gun, short-barreled shotgun, or short-barreled rifle, to any 
person other than another licensee who is licensed under this part to 
deal in such device or firearm, is prohibited unless the person to 
receive such device or firearm furnishes to the licensee a sworn 
statement setting forth
    (a) The reasons why there is a reasonable necessity for such person 
to purchase or otherwise acquire the device or weapon; and
    (b) That such person's receipt or possession of the device or weapon 
would be consistent with public safety. Such sworn statement shall be 
made on the application to transfer and register the firearm required by 
Part 479 of this chapter. The sale or delivery of the device or weapon 
shall not be made until the application for transfer is approved by the 
Director and returned to the licensee (transferor) as provided in Part 
479 of this chapter.

[T.D. ATF-270, 53 FR 10497, Mar. 31, 1988]



Sec. 478.99  Certain prohibited sales or deliveries.

    (a) Interstate sales or deliveries. A licensed importer, licensed 
manufacturer, licensed dealer, or licensed collector shall not sell or 
deliver any firearm to any person not licensed under this part and who 
the licensee knows or has reasonable cause to believe does not reside in 
(or if a corporation or other business entity, does not maintain a place 
of business in) the State in which the licensee's place of business or 
activity is located: Provided, That the foregoing provisions of this 
paragraph (1) shall not apply to the sale or delivery of a rifle or 
shotgun (curio or relic, in the case of a licensed collector) to a 
resident of a State other than the State in which the licensee's place 
of business or collection premises is located if the requirements of 
Sec. 478.96(c) are fully met, and (2) shall not apply to the loan or 
rental of a firearm to any person for temporary use for lawful sporting 
purposes (see Sec. 478.97).
    (b) Sales or deliveries to underaged persons. A licensed importer, 
licensed manufacturer, licensed dealer, or licensed collector shall not 
sell or deliver (1) any firearm or ammunition to any individual who the 
importer, manufacturer, dealer, or collector knows or has reasonable 
cause to believe is less than 18 years of age, and, if the firearm, or 
ammunition, is other than a shotgun or rifle, or ammunition for a 
shotgun or rifle, to any individual who the importer, manufacturer, 
dealer, or collector knows or has reasonable cause to believe is less 
than 21 years of age, or (2) any firearm to any person in any State 
where the purchase or possession by such person of such firearm would be 
in violation of any State law or any published ordinance applicable at 
the place of sale, delivery, or other disposition, unless the importer, 
manufacturer, dealer, or collector knows or has reasonable cause to 
believe that the purchase or possession would not be in violation of 
such State law or such published ordinance.
    (c) Sales or deliveries to prohibited categories of persons. A 
licensed manufacturer, licensed importer, licensed dealer, or licensed 
collector shall not sell or otherwise dispose of any firearm or 
ammunition to any person knowing or having reasonable cause to believe 
that such person:
    (1) Is, except as provided by Sec. 478.143, under indictment for, 
or, except as provided by Sec. 478.144, has been convicted in any court 
of a crime punishable by imprisonment for a term exceeding 1 year;
    (2) Is a fugitive from justice;
    (3) Is an unlawful user of or addicted to any controlled substance 
(as defined

[[Page 53]]

in section 102 of the Controlled Substance Act, 21 U.S.C. 802);
    (4) Has been adjudicated as a mental defective or has been committed 
to any mental institution;
    (5) Is an alien illegally or unlawfully in the United States or, 
except as provided in Sec. 478.32(f), is a nonimmigrant alien: 
Provided, That the provisions of this paragraph (c)(5) do not apply to 
any nonimmigrant alien if that alien is--
    (i) Admitted to the United States for lawful hunting or sporting 
purposes or is in possession of a hunting license or permit lawfully 
issued in the United States;
    (ii) An official representative of a foreign government who is 
either accredited to the United States Government or the Government's 
mission to an international organization having its headquarters in the 
United States or en route to or from another country to which that alien 
is accredited. This exception only applies if the firearm or ammunition 
is shipped, transported, possessed, or received in the representative's 
official capacity;
    (iii) An official of a foreign government or a distinguished foreign 
visitor who has been so designated by the Department of State. This 
exception only applies if the firearm or ammunition is shipped, 
transported, possessed, or received in the official's or visitor's 
official capacity, except if the visitor is a private individual who 
does not have an official capacity; or
    (iv) A foreign law enforcement officer of a friendly foreign 
government entering the United States on official law enforcement 
business;
    (6) Has been discharged from the Armed Forces under dishonorable 
conditions;
    (7) Who, having been a citizen of the United States, has renounced 
citizenship;
    (8) Is subject to a court order that restrains such person from 
harassing, stalking, or threatening an intimate partner of such person 
or child of such intimate partner or person, or engaging in other 
conduct that would place an intimate partner in reasonable fear of 
bodily injury to the partner or child, except that this paragraph shall 
only apply to a court order that--
    (i) Was issued after a hearing of which such person received actual 
notice, and at which such person had the opportunity to participate; and
    (ii)(A) Includes a finding that such person represents a credible 
threat to the physical safety of such intimate partner or child; or
    (B) By its terms explicitly prohibits the use, attempted use, or 
threatened use of physical force against such intimate partner or child 
that would reasonably be expected to cause bodily injury, or
    (9) Has been convicted of a misdemeanor crime of domestic violence.
    (d) Manufacture, importation, and sale of armor piercing ammunition 
by licensed importers and licensed manufacturers. A licensed importer or 
licensed manufacturer shall not import or manufacture armor piercing 
ammunition or sell or deliver such ammunition, except:
    (1) For use of the United States or any department or agency thereof 
or any State or any department, agency, or political subdivision 
thereof;
    (2) For the purpose of exportation; or
    (3) For the purpose of testing or experimentation authorized by the 
Director under the provisions of Sec. 478.149.
    (e) Transfer of armor piercing ammunition by licensed dealers. A 
licensed dealer shall not willfully transfer armor piercing ammunition: 
Provided, That armor piercing ammunition received and maintained by the 
licensed dealer as business inventory prior to August 28, 1986, may be 
transferred to any department or agency of the United States or any 
State or political subdivision thereof if a record of such ammunition is 
maintained in the form and manner prescribed by Sec. 478.125(c). Any 
licensed dealer who violates this paragraph is subject to license 
revocation. See subpart E of this part. For purposes of this paragraph, 
the Director shall furnish each licensed dealer information defining 
which projectiles are considered armor piercing. Such information may 
not be all-inclusive for purposes of the prohibition on manufacture, 
importation, or sale or delivery by a manufacturer or importer of

[[Page 54]]

such ammunition or 18 U.S.C. 929 relating to criminal misuse of such 
ammunition.

[T.D. ATF-270, 53 FR 10497, Mar. 31, 1988, as amended by T.D. ATF-363, 
60 FR 17454, Apr. 6, 1995; T.D. ATF-401, 63 FR 35523, June 30, 1998; 
T.D. ATF-471, 67 FR 5426, Feb. 5, 2002]



Sec. 478.100  Conduct of business away from licensed premises.

    (a)(1) A licensee may conduct business temporarily at a gun show or 
event as defined in paragraph (b) if the gun show or event is located in 
the same State specified on the license: Provided, That such business 
shall not be conducted from any motorized or towed vehicle. The premises 
of the gun show or event at which the licensee conducts business shall 
be considered part of the licensed premises. Accordingly, no separate 
fee or license is required for the gun show or event locations. However, 
licensees shall comply with the provisions of Sec. 478.91 relating to 
posting of licenses (or a copy thereof) while conducting business at the 
gun show or event.
    (2) A licensed importer, manufacturer, or dealer may engage in the 
business of dealing in curio or relic firearms with another licensee at 
any location.
    (b) A gun show or an event is a function sponsored by any national, 
State, or local organization, devoted to the collection, competitive 
use, or other sporting use of firearms, or an organization or 
association that sponsors functions devoted to the collection, 
competitive use, or other sporting use of firearms in the community.
    (c) Licensees conducting business at locations other than the 
premises specified on their license under the provisions of paragraph 
(a) of this section shall maintain firearms records in the form and 
manner prescribed by subpart H of this part. In addition, records of 
firearms transactions conducted at such locations shall include the 
location of the sale or other disposition, be entered in the acquisition 
and disposition records of the licensee, and retained on the premises 
specified on the license.

[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988, as amended by T.D. ATF-401, 
63 FR 35523, June 30, 1998]



Sec. 478.101  Record of transactions.

    Every licensee shall maintain firearms and armor piercing ammunition 
records in such form and manner as is prescribed by subpart H of this 
part.

[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988]



Sec. 478.102  Sales or deliveries of firearms on and after November 
30, 1998.

    (a) Background check. Except as provided in paragraph (d) of this 
section, a licensed importer, licensed manufacturer, or licensed dealer 
(the licensee) shall not sell, deliver, or transfer a firearm to any 
other person who is not licensed under this part unless the licensee 
meets the following requirements:
    (1) Before the completion of the transfer, the licensee has 
contacted NICS;
    (2)(i) NICS informs the licensee that it has no information that 
receipt of the firearm by the transferee would be in violation of 
Federal or State law and provides the licensee with a unique 
identification number; or
    (ii) Three business days (meaning days on which State offices are 
open) have elapsed from the date the licensee contacted NICS and NICS 
has not notified the licensee that receipt of the firearm by the 
transferee would be in violation of law; and
    (3) The licensee verifies the identity of the transferee by 
examining the identification document presented in accordance with the 
provisions of Sec. 478.124(c).

    Example for paragraph (a). A licensee contacts NICS on Thursday, and 
gets a ``delayed'' response. The licensee does not get a further 
response from NICS. If State offices are not open on Saturday and 
Sunday, 3 business days would have elapsed on the following Tuesday. The 
licensee may transfer the firearm on the next day, Wednesday.

    (b) Transaction number. In any transaction for which a licensee 
receives a transaction number from NICS (which shall include either a 
NICS transaction number or, in States where the State is recognized as a 
point of contact for NICS checks, a State transaction number), such 
number shall be recorded on a firearms transaction record, Form 4473, 
which shall be retained in the

[[Page 55]]

records of the licensee in accordance with the provisions of Sec. 
478.129. This applies regardless of whether the transaction is approved 
or denied by NICS, and regardless of whether the firearm is actually 
transferred.
    (c) Time limitation on NICS checks. A NICS check conducted in 
accordance with paragraph (a) of this section may be relied upon by the 
licensee only for use in a single transaction, and for a period not to 
exceed 30 calendar days from the date that NICS was initially contacted. 
If the transaction is not completed within the 30-day period, the 
licensee shall initiate a new NICS check prior to completion of the 
transfer.

    Example 1 for paragraph (c). A purchaser completes the Form 4473 on 
December 15, 1998, and a NICS check is initiated by the licensee on that 
date. The licensee is informed by NICS that the information available to 
the system does not indicate that receipt of the firearm by the 
transferee would be in violation of law, and a unique identification 
number is provided. However, the State imposes a 7-day waiting period on 
all firearms transactions, and the purchaser does not return to pick up 
the firearm until January 22, 1999. The licensee must conduct another 
NICS check before transferring the firearm to the purchaser.
    Example 2 for paragraph (c). A purchaser completes the Form 4473 on 
January 25, 1999, and arranges for the purchase of a single firearm. A 
NICS check is initiated by the licensee on that date. The licensee is 
informed by NICS that the information available to the system does not 
indicate that receipt of the firearm by the transferee would be in 
violation of law, and a unique identification number is provided. The 
State imposes a 7-day waiting period on all firearms transactions, and 
the purchaser returns to pick up the firearm on February 15, 1999. 
Before the licensee executes the Form 4473, and the firearm is 
transferred, the purchaser decides to purchase an additional firearm. 
The transfer of these two firearms is considered a single transaction; 
accordingly, the licensee may add the second firearm to the Form 4473, 
and transfer that firearm without conducting another NICS check.
    Example 3 for paragraph (c). A purchaser completes a Form 4473 on 
February 15, 1999. The licensee receives a unique identification number 
from NICS on that date, the Form 4473 is executed by the licensee, and 
the firearm is transferred. On February 20, 1999, the purchaser returns 
to the licensee's premises and wishes to purchase a second firearm. The 
purchase of the second firearm is a separate transaction; thus, a new 
NICS check must be initiated by the licensee.

    (d) Exceptions to NICS check. The provisions of paragraph (a) of 
this section shall not apply if--
    (1) The transferee has presented to the licensee a valid permit or 
license that--
    (i) Allows the transferee to possess, acquire, or carry a firearm;
    (ii) Was issued not more than 5 years earlier by the State in which 
the transfer is to take place; and
    (iii) The law of the State provides that such a permit or license is 
to be issued only after an authorized government official has verified 
that the information available to such official does not indicate that 
possession of a firearm by the transferee would be in violation of 
Federal, State, or local law: Provided, That on and after November 30, 
1998, the information available to such official includes the NICS;
    (2) The firearm is subject to the provisions of the National 
Firearms Act and has been approved for transfer under 27 CFR part 479; 
or
    (3) On application of the licensee, in accordance with the 
provisions of Sec. 478.150, the Director has certified that compliance 
with paragraph (a)(1) of this section is impracticable.
    (e) The document referred to in paragraph (d)(1) of this section (or 
a copy thereof) shall be retained or the required information from the 
document shall be recorded on the firearms transaction record in 
accordance with the provisions of Sec. 478.131.

(Approved by the Office of Management and Budget under control number 
1512-0544)

[T.D. ATF-415, 63 FR 58279, Oct. 29, 1998]



Sec. 478.103  Posting of signs and written notification to purchasers 
of handguns.

    (a) Each licensed importer, manufacturer, dealer, or collector who 
delivers a handgun to a nonlicensee shall provide such nonlicensee with 
written notification as described in paragraph (b) of this section.
    (b) The written notification (ATF I 5300.2) required by paragraph 
(a) of this section shall state as follows:
    (1) The misuse of handguns is a leading contributor to juvenile 
violence and fatalities.

[[Page 56]]

    (2) Safely storing and securing firearms away from children will 
help prevent the unlawful possession of handguns by juveniles, stop 
accidents, and save lives.
    (3) Federal law prohibits, except in certain limited circumstances, 
anyone under 18 years of age from knowingly possessing a handgun, or any 
person from transferring a handgun to a person under 18.
    (4) A knowing violation of the prohibition against selling, 
delivering, or otherwise transferring a handgun to a person under the 
age of 18 is, under certain circumstances, punishable by up to 10 years 
in prison.

                               FEDERAL LAW

    The Gun Control Act of 1968, 18 U.S.C. Chapter 44, provides in 
pertinent part as follows:

                            18 U.S.C. 922(x)

    (x)(1) It shall be unlawful for a person to sell, deliver, or 
otherwise transfer to a person who the transferor knows or has 
reasonable cause to believe is a juvenile--
    (A) a handgun; or
    (B) ammunition that is suitable for use only in a handgun.
    (2) It shall be unlawful for any person who is a juvenile to 
knowingly possess--
    (A) a handgun; or
    (B) ammunition that is suitable for use only in a handgun.
    (3) This subsection does not apply to--
    (A) a temporary transfer of a handgun or ammunition to a juvenile or 
to the possession or use of a handgun or ammunition by a juvenile if the 
handgun and ammunition are possessed and used by the juvenile--
    (i) in the course of employment, in the course of ranching or 
farming related to activities at the residence of the juvenile (or on 
property used for ranching or farming at which the juvenile, with the 
permission of the property owner or lessee, is performing activities 
related to the operation of the farm or ranch), target practice, 
hunting, or a course of instruction in the safe and lawful use of a 
handgun;
    (ii) with the prior written consent of the juvenile's parent or 
guardian who is not prohibited by Federal, State, or local law from 
possessing a firearm, except--
    (I) during transportation by the juvenile of an unloaded handgun in 
a locked container directly from the place of transfer to a place at 
which an activity described in clause (i) is to take place and 
transportation by the juvenile of that handgun, unloaded and in a locked 
container, directly from the place at which such an activity took place 
to the transferor; or
    (II) with respect to ranching or farming activities as described in 
clause (i) a juvenile may possess and use a handgun or ammunition with 
the prior written approval of the juvenile's parent or legal guardian 
and at the direction of an adult who is not prohibited by Federal, 
State, or local law from possessing a firearm;
    (iii) the juvenile has the prior written consent in the juvenile's 
possession at all times when a handgun is in the possession of the 
juvenile; and
    (iv) in accordance with State and local law;
    (B) a juvenile who is a member of the Armed Forces of the United 
States or the National Guard who possesses or is armed with a handgun in 
the line of duty;
    (C) a transfer by inheritance of title (but not possession) of a 
handgun or ammunition to a juvenile; or
    (D) the possession of a handgun or ammunition by a juvenile taken in 
defense of the juvenile or other persons against an intruder into the 
residence of the juvenile or a residence in which the juvenile is an 
invited guest.
    (4) A handgun or ammunition, the possession of which is transferred 
to a juvenile in circumstances in which the transferor is not in 
violation of this subsection shall not be subject to permanent 
confiscation by the Government if its possession by the juvenile 
subsequently becomes unlawful because of the conduct of the juvenile, 
but shall be returned to the lawful owner when such handgun or 
ammunition is no longer required by the Government for the purposes of 
investigation or prosecution.
    (5) For purposes of this subsection, the term ``juvenile'' means a 
person who is less than 18 years of age.
    (6)(A) In a prosecution of a violation of this subsection, the court 
shall require the presence of a juvenile defendant's parent or legal 
guardian at all proceedings.
    (B) The court may use the contempt power to enforce subparagraph 
(A).
    (C) The court may excuse attendance of a parent or legal guardian of 
a juvenile defendant at a proceeding in a prosecution of a violation of 
this subsection for good cause shown.

                           18 U.S.C. 924(a)(6)

    (6)(A)(i) A juvenile who violates section 922(x) shall be fined 
under this title, imprisoned not more than 1 year, or both, except that 
a juvenile described in clause (ii) shall be sentenced to probation on 
appropriate conditions and shall not be incarcerated unless the juvenile 
fails to comply with a condition of probation.

    (ii) A juvenile is described in this clause if--

[[Page 57]]

    (I) the offense of which the juvenile is charged is possession of a 
handgun or ammunition in violation of section 922(x)(2); and
    (II) the juvenile has not been convicted in any court of an offense 
(including an offense under section 922(x) or a similar State law, but 
not including any other offense consisting of conduct that if engaged in 
by an adult would not constitute an offense) or adjudicated as a 
juvenile delinquent for conduct that if engaged in by an adult would 
constitute an offense.
    (B) A person other than a juvenile who knowingly violates section 
922(x)--
    (i) shall be fined under this title, imprisoned not more than 1 
year, or both; and
    (ii) if the person sold, delivered, or otherwise transferred a 
handgun or ammunition to a juvenile knowing or having reasonable cause 
to know that the juvenile intended to carry or otherwise possess or 
discharge or otherwise use the handgun or ammunition in the commission 
of a crime of violence, shall be fined under this title, imprisoned not 
more than 10 years, or both.

    (c) This written notification shall be delivered to the nonlicensee 
on ATF I 5300.2, or in the alternative, the same written notification 
may be delivered to the nonlicensee on another type of written 
notification, such as a manufacturer's or importer's brochure 
accompanying the handgun; a manufacturer's or importer's operational 
manual accompanying the handgun; or a sales receipt or invoice applied 
to the handgun package or container delivered to a nonlicensee. Any 
written notification delivered to a nonlicensee other than on ATF I 
5300.2 shall include the language set forth in paragraph (b) of this 
section in its entirety. Any written notification other than ATF I 
5300.2 shall be legible, clear, and conspicuous, and the required 
language shall appear in type size no smaller than 10-point type.
    (d) Except as provided in paragraph (f) of this section, each 
licensed importer, manufacturer, or dealer who delivers a handgun to a 
nonlicensee shall display at its licensed premises (including temporary 
business locations at gun shows) a sign as described in paragraph (e) of 
this section. The sign shall be displayed where customers can readily 
see it. Licensed importers, manufacturers, and dealers will be provided 
with such signs by ATF. Replacement signs may be requested from the ATF 
Distribution Center.
    (e) The sign (ATF I 5300.1) required by paragraph (d) of this 
section shall state as follows:

    (1) The misuse of handguns is a leading contributor to juvenile 
violence and fatalities.
    (2) Safely storing and securing firearms away from children will 
help prevent the unlawful possession of handguns by juveniles, stop 
accidents, and save lives.
    (3) Federal law prohibits, except in certain limited circumstances, 
anyone under 18 years of age from knowingly possessing a handgun, or any 
person from transferring a handgun to a person under 18.
    (4) A knowing violation of the prohibition against selling, 
delivering, or otherwise transferring a handgun to a person under the 
age of 18 is, under certain circumstances, punishable by up to 10 years 
in prison.

    Note: ATF I 5300.2 provides the complete language of the statutory 
prohibitions and exceptions provided in 18 U.S.C. 922(x) and the penalty 
provisions of 18 U.S.C. 924(a)(6). The Federal firearms licensee posting 
this sign will provide you with a copy of this publication upon request. 
Requests for additional copies of ATF I 5300.2 should be mailed to the 
ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-
5950.

    (f) The sign required by paragraph (d) of this section need not be 
posted on the premises of any licensed importer, manufacturer, or dealer 
whose only dispositions of handguns to nonlicensees are to nonlicensees 
who do not appear at the licensed premises and the dispositions 
otherwise comply with the provisions of this part.

[T.D. ATF-402, 63 FR 37742, July 13, 1998]



                          Subpart G_Importation



Sec. 478.111  General.

    (a) Section 922(a)(3) of the Act makes it unlawful, with certain 
exceptions not pertinent here, for any person other than a licensee to 
transport into or receive in the State where the person resides any 
firearm purchased or otherwise obtained by the person outside of that 
State. However, section 925(a)(4) provides a limited exception for the 
transportation, shipment, receipt or importation of certain firearms and 
ammunition by certain members of the United States Armed Forces. Section 
922(1) of the Act makes it unlawful for any person knowingly to import 
or bring into the United

[[Page 58]]

States or any possession thereof any firearm or ammunition except as 
provided by section 925(d) of the Act, which section provides standards 
for importing or bringing firearms or ammunition into the United States. 
Section 925(d) also provides standards for importing or bringing firearm 
barrels into the United States. Accordingly, no firearm, firearm barrel, 
or ammunition may be imported or brought into the United States except 
as provided by this part.
    (b) Where a firearm, firearm barrel, or ammunition is imported and 
the authorization for importation required by this subpart has not been 
obtained by the person importing same, such person shall:
    (1) Store, at the person's expense, such firearm, firearm barrel, or 
ammunition at a facility designated by U.S Customs or the Director of 
Industry Operations to await the issuance of the required authorization 
or other disposition; or
    (2) Abandon such firearm, firearm barrel, or ammunition to the U.S. 
Government; or
    (3) Export such firearm, firearm barrel, or ammunition.
    (c) Any inquiry relative to the provisions or procedures under this 
subpart, other than that pertaining to the payment of customs duties or 
the release from Customs custody of firearms, firearm barrels, or 
ammunition authorized by the Director to be imported, shall be directed 
to the Director of Industry Operations for reply.

[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988]



Sec. 478.112  Importation by a licensed importer.

    (a) No firearm, firearm barrel, or ammunition shall be imported or 
brought into the United States by a licensed importer (as defined in 
Sec. 478.11) unless the Director has authorized the importation of the 
firearm, firearm barrel, or ammunition.
    (b)(1) An application for a permit, ATF Form 6--Part I, to import or 
bring a firearm, firearm barrel, or ammunition into the United States or 
a possession thereof under this section must be filed, in triplicate, 
with the Director. The application must be signed and dated and must 
contain the information requested on the form, including:
    (i) The name, address, telephone number, and license number 
(including expiration date) of the importer;
    (ii) The country from which the firearm, firearm barrel, or 
ammunition is to be imported;
    (iii) The name and address of the foreign seller and foreign 
shipper;
    (iv) A description of the firearm, firearm barrel, or ammunition to 
be imported, including:
    (A) The name and address of the manufacturer;
    (B) The type (e.g., rifle, shotgun, pistol, revolver and, in the 
case of ammunition only, ball, wadcutter, shot, etc.);
    (C) The caliber, gauge, or size;
    (D) The model;
    (E) The barrel length, if a firearm or firearm barrel (in inches);
    (F) The overall length, if a firearm (in inches);
    (G) The serial number, if known;
    (H) Whether the firearm is new or used;
    (I) The quantity;
    (J) The unit cost of the firearm, firearm barrel, or ammunition to 
be imported;
    (v) The specific purpose of importation, including final recipient 
information if different from the importer;
    (vi) Verification that if a firearm, it will be identified as 
required by this part; and
    (vii)(A) If a firearm or ammunition imported or brought in for 
scientific or research purposes, a statement describing such purpose; or
    (B) If a firearm or ammunition for use in connection with 
competition or training pursuant to Chapter 401 of Title 10, U.S.C., a 
statement describing such intended use; or
    (C) If an unserviceable firearm (other than a machine gun) being 
imported as a curio or museum piece, a description of how it was 
rendered unserviceable and an explanation of why it is a curio or museum 
piece; or
    (D) If a firearm other than a surplus military firearm, of a type 
that does not fall within the definition of a firearm under section 
5845(a) of the Internal Revenue Code of 1986, and is for sporting 
purposes, an explanation of why the firearm is generally recognized

[[Page 59]]

as particularly suitable for or readily adaptable to sporting purposes; 
or
    (E) If ammunition being imported for sporting purposes, a statement 
why the ammunition is particularly suitable for or readily adaptable to 
sporting purposes; or
    (F) If a firearm barrel for a handgun, an explanation why the 
handgun is generally recognized as particularly suitable for or readily 
adaptable to sporting purposes.(2)(i) If the Director approves the 
application, such approved application will serve as the permit to 
import the firearm, firearm barrel, or ammunition described therein, and 
importation of such firearms, firearm barrels, or ammunition may 
continue to be made by the licensed importer under the approved 
application (permit) during the period specified thereon. The Director 
will furnish the approved application (permit) to the applicant and 
retain two copies thereof for administrative use.
    (ii) If the Director disapproves the application, the licensed 
importer will be notified of the basis for the disapproval.
    (c) A firearm, firearm barrel, or ammunition imported or brought 
into the United States or a possession thereof under the provisions of 
this section by a licensed importer may be released from Customs custody 
to the licensed importer upon showing that the importer has obtained a 
permit from the Director for the importation of the firearm, firearm 
barrel, or ammunition to be released. The importer will also submit to 
Customs a copy of the export license authorizing the export of the 
firearm, firearm barrel, or ammunition from the exporting country. If 
the exporting country does not require issuance of an export license, 
the importer must submit a certification, under penalty of perjury, to 
that effect.
    (1) In obtaining the release from Customs custody of a firearm, 
firearm barrel, or ammunition authorized by this section to be imported 
through the use of a permit, the licensed importer will prepare ATF Form 
6A, in duplicate, and furnish the original ATF Form 6A to the Customs 
officer releasing the firearm, firearm barrel, or ammunition. The 
Customs officer will, after certification, forward the ATF Form 6A to 
the address specified on the form.
    (2) The ATF Form 6A must contain the information requested on the 
form, including:
    (i) The name, address, and license number of the importer;
    (ii) The name of the manufacturer of the firearm, firearm barrel, or 
ammunition;
    (iii) The country of manufacture;
    (iv) The type;
    (v) The model;
    (vi) The caliber, gauge, or size;
    (vii) The serial number in the case of firearms, if known; and
    (viii) The number of firearms, firearm barrels, or rounds of 
ammunition released.
    (d) Within 15 days of the date of release from Customs custody, the 
licensed importer must:
    (1) Forward to the address specified on the form a copy of ATF Form 
6A on which must be reported any error or discrepancy appearing on the 
ATF Form 6A certified by Customs and serial numbers if not previously 
provided on ATF Form 6A;
    (2) Pursuant to Sec. 478.92, place all required identification data 
on each imported firearm if same did not bear such identification data 
at the time of its release from Customs custody; and
    (3) Post in the records required to be maintained by the importer 
under subpart H of this part all required information regarding the 
importation.

(Paragraph (b) approved by the Office of Management and Budget under 
control number 1512-0017; paragraphs (c) and (d) approved by the Office 
of Management and Budget under control number 1512-0019)

[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988, as amended by T.D. ATF-426, 
65 FR 38198, June 20, 2000]



Sec. 478.113  Importation by other licensees.

    (a) No person other than a licensed importer (as defined in Sec. 
478.11) shall engage in the business of importing firearms or 
ammunition. Therefore, no firearm or ammunition shall be imported or 
brought into the United States or a possession thereof by any licensee 
other than a licensed importer

[[Page 60]]

unless the Director issues a permit authorizing the importation of the 
firearm or ammunition. No barrel for a handgun not generally recognized 
as particularly suitable for or readily adaptable to sporting purposes 
shall be imported or brought into the United States or a possession 
thereof by any person. Therefore, no firearm barrel shall be imported or 
brought into the United States or possession thereof by any licensee 
other than a licensed importer unless the Director issues a permit 
authorizing the importation of the firearm barrel.
    (b)(1) An application for a permit, ATF Form 6--Part I, to import or 
bring a firearm, firearm barrel, or ammunition into the United States or 
a possession thereof by a licensee, other than a licensed importer, must 
be filed, in triplicate, with the Director. The application must be 
signed and dated and must contain the information requested on the form, 
including:
    (i) The name, address, telephone number, and license number 
(including expiration date) of the applicant;
    (ii) The country from which the firearm, firearm barrel, or 
ammunition is to be imported;
    (iii) The name and address of the foreign seller and foreign 
shipper;
    (iv) A description of the firearm, firearm barrel, or ammunition to 
be imported, including:
    (A) The name and address of the manufacturer;
    (B) The type (e.g., rifle, shotgun, pistol, revolver and, in the 
case of ammunition only, ball, wadcutter, shot, etc.);
    (C) The caliber, gauge, or size;
    (D) The model;
    (E) The barrel length, if a firearm or firearm barrel (in inches);
    (F) The overall length, if a firearm (in inches);
    (G) The serial number, if known;
    (H) Whether the firearm is new or used;
    (I) The quantity;
    (J) The unit cost of the firearm, firearm barrel, or ammunition to 
be imported;
    (v) The specific purpose of importation, including final recipient 
information if different from the applicant; and
    (vi)(A) If a firearm or ammunition imported or brought in for 
scientific or research purposes, a statement describing such purpose; or
    (B) If a firearm or ammunition for use in connection with 
competition or training pursuant to Chapter 401 of Title 10, U.S.C., a 
statement describing such intended use; or
    (C) If an unserviceable firearm (other than a machine gun) being 
imported as a curio or museum piece, a description of how it was 
rendered unserviceable and an explanation of why it is a curio or museum 
piece; or
    (D) If a firearm other than a surplus military firearm, of a type 
that does not fall within the definition of a firearm under section 
5845(a) of the Internal Revenue Code of 1986, and is for sporting 
purposes, an explanation of why the firearm is generally recognized as 
particularly suitable for or readily adaptable to sporting purposes; or
    (E) If ammunition being imported for sporting purposes, a statement 
why the ammunition is particularly suitable for or readily adaptable to 
sporting purposes; or
    (F) If a firearm barrel for a handgun, an explanation why the 
handgun is generally recognized as particularly suitable for or readily 
adaptable to sporting purposes.
    (2)(i) If the Director approves the application, such approved 
application will serve as the permit to import the firearm, firearm 
barrel, or ammunition described therein, and importation of such 
firearms, firearm barrels, or ammunition may continue to be made by the 
applicant under the approved application (permit) during the period 
specified thereon. The Director will furnish the approved application 
(permit) to the applicant and retain two copies thereof for 
administrative use.
    (ii) If the Director disapproves the application, the applicant will 
be notified of the basis for the disapproval.
    (c) A firearm, firearm barrel, or ammunition imported or brought 
into the United States or a possession thereof under the provisions of 
this section may be released from Customs custody to the licensee upon 
showing that the licensee has obtained a permit from the Director for 
the importation of the

[[Page 61]]

firearm, firearm barrel, or ammunition to be released.
    (1) In obtaining the release from Customs custody of a firearm, 
firearm barrel, or ammunition authorized by this section to be imported 
through the use of a permit, the licensee will prepare ATF Form 6A, in 
duplicate, and furnish the original ATF Form 6A to the Customs officer 
releasing the firearm, firearm barrel, or ammunition. The Customs 
officer will, after certification, forward the ATF Form 6A to the 
address specified on the form.
    (2) The ATF Form 6A must contain the information requested on the 
form, including:
    (i) The name, address, and license number of the licensee;
    (ii) The name of the manufacturer of the firearm, firearm barrel, or 
ammunition;
    (iii) The country of manufacture;
    (iv) The type;
    (v) The model;
    (vi) The caliber, gauge, or size;
    (vii) The serial number in the case of firearms; and
    (viii) The number of firearms, firearm barrels, or rounds of 
ammunition released.

(Paragraph (b) approved by the Office of Management and Budget under 
control number 1512-0017; paragraph (c) approved by the Office of 
Management and Budget under control number 1512-0019)

[T.D. ATF-270, 53 FR 10499, Mar. 31, 1988, as amended by T.D. ATF-426, 
65 FR 38199, June 20, 2000]



Sec. 478.113a  Importation of firearm barrels by nonlicensees.

    (a) A permit will not be issued for a firearm barrel for a handgun 
not generally recognized as particularly suitable for or readily 
adaptable to sporting purposes. No firearm barrel shall be imported or 
brought into the United States or possession thereof by any nonlicensee 
unless the Director issues a permit authorizing the importation of the 
firearm barrel.
    (b)(1) An application for a permit, ATF Form 6--Part I, to import or 
bring a firearm barrel into the United States or a possession thereof 
under this section must be filed, in triplicate, with the Director. The 
application must be signed and dated and must contain the information 
requested on the form, including:
    (i) The name, address, and telephone number of the applicant;
    (ii) The country from which the firearm barrel is to be imported;
    (iii) The name and address of the foreign seller and foreign 
shipper;
    (iv) A description of the firearm barrel to be imported, including:
    (A) The name and address of the manufacturer;
    (B) The type (e.g., rifle, shotgun, pistol, revolver);
    (C) The caliber, gauge, or size;
    (D) The model;
    (E) The barrel length (in inches);
    (F) The quantity;
    (G) The unit cost of the firearm barrel;
    (v) The specific purpose of importation, including final recipient 
information if different from the importer; and
    (vi) If a handgun barrel, an explanation of why the barrel is for a 
handgun that is generally recognized as particularly suitable for or 
readily adaptable to sporting purposes.
    (2)(i) If the Director approves the application, such approved 
application will serve as the permit to import the firearm barrel, and 
importation of such firearm barrels may continue to be made by the 
applicant under the approved application (permit) during the period 
specified thereon. The Director will furnish the approved application 
(permit) to the applicant and retain two copies thereof for 
administrative use.
    (ii) If the Director disapproves the application, the applicant will 
be notified of the basis for the disapproval.
    (c) A firearm barrel imported or brought into the United States or a 
possession thereof under the provisions of this section may be released 
from Customs custody to the person importing the firearm barrel upon 
showing that the person has obtained a permit from the Director for the 
importation of the firearm barrel to be released.
    (1) In obtaining the release from Customs custody of a firearm 
barrel authorized by this section to be imported through the use of a 
permit, the person importing the firearm barrel will prepare ATF Form 
6A, in duplicate, and furnish the original ATF Form 6A to

[[Page 62]]

the Customs officer releasing the firearm barrel. The Customs officer 
will, after certification, forward the ATF Form 6A to the address 
specified on the form.
    (2) The ATF Form 6A must contain the information requested on the 
form, including:
    (i) The name and address of the person importing the firearm barrel;
    (ii) The name of the manufacturer of the firearm barrel;
    (iii) The country of manufacture;
    (iv) The type;
    (v) The model;
    (vi) The caliber or gauge of the firearm barrel so released; and
    (vii) The number of firearm barrels released.

(Paragraph (b) approved by the Office of Management and Budget under 
control number 1512-0017; paragraph (c) approved by the Office of 
Management and Budget under control number 1512-0019)

[T.D. ATF-270, 53 FR 10499, Mar. 31, 1988, as amended by T.D. ATF-426, 
65 FR 38200, June 20, 2000]



Sec. 478.114  Importation by members of the U.S. Armed Forces.

    (a) The Director may issue a permit authorizing the importation of a 
firearm or ammunition into the United States to the place of residence 
of any military member of the U.S. Armed Forces who is on active duty 
outside the United States, or who has been on active duty outside the 
United States within the 60-day period immediately preceding the 
intended importation: Provided, That such firearm or ammunition is 
generally recognized as particularly suitable for or readily adaptable 
to sporting purposes and is intended for the personal use of such 
member.
    (1) An application for a permit, ATF Form 6--Part II, to import a 
firearm or ammunition into the United States under this section must be 
filed, in triplicate, with the Director. The application must be signed 
and dated and must contain the information requested on the form, 
including:
    (i) The name, current address, and telephone number of the 
applicant;
    (ii) Certification that the transportation, receipt, or possession 
of the firearm or ammunition to be imported would not constitute a 
violation of any provision of the Act or of any State law or local 
ordinance at the place of the applicant's residence;
    (iii) The country from which the firearm or ammunition is to be 
imported;
    (iv) The name and address of the foreign seller and foreign shipper;
    (v) A description of the firearm or ammunition to be imported, 
including:
    (A) The name and address of the manufacturer;
    (B) The type (e.g., rifle, shotgun, pistol, revolver and, in the 
case of ammunition only, ball, wadcutter, shot, etc.);
    (C) The caliber, gauge, or size;
    (D) The model;
    (E) The barrel length, if a firearm (in inches);
    (F) The overall length, if a firearm (in inches);
    (G) The serial number;
    (H) Whether the firearm is new or used;
    (I) The quantity;
    (J) The unit cost of the firearm or ammunition to imported;
    (vi) The specific purpose of importation, that is --
    (A) That the firearm or ammunition being imported is for the 
personal use of the applicant; and
    (B) If a firearm, a statement that it is not a surplus military 
firearm, that it does not fall within the definition of a firearm under 
section 5845(a) of the Internal Revenue Code of 1986, and an explanation 
of why the firearm is generally recognized as particularly suitable for 
or readily adaptable to sporting purposes; or
    (C) If ammunition, a statement why it is generally recognized as 
particularly suitable for or readily adaptable to sporting purposes; and
    (vii) The applicant's date of birth;
    (viii) The applicant's rank or grade;
    (ix) The applicant's place of residence;
    (x) The applicant's present foreign duty station or last foreign 
duty station, as the case may be;
    (xi) The date of the applicant's reassignment to a duty station 
within the United States, if applicable; and
    (xii) The military branch of which the applicant is a member.
    (2)(i) If the Director approves the application, such approved 
application

[[Page 63]]

will serve as the permit to import the firearm or ammunition described 
therein. The Director will furnish the approved application (permit) to 
the applicant and retain two copies thereof for administrative use.
    (ii) If the Director disapproves the application, the applicant will 
be notified of the basis for the disapproval.
    (b) Except as provided in paragraph (b)(3) of this section, a 
firearm or ammunition imported into the United States under the 
provisions of this section by the applicant may be released from Customs 
custody to the applicant upon showing that the applicant has obtained a 
permit from the Director for the importation of the firearm or 
ammunition to be released.
    (1) In obtaining the release from Customs custody of a firearm or 
ammunition authorized by this section to be imported through the use of 
a permit, the military member of the U.S. Armed Forces will prepare ATF 
Form 6A and furnish the completed form to the Customs officer releasing 
the firearm or ammunition. The Customs officer will, after 
certification, forward the ATF Form 6A to the address specified on the 
form.
    (2) The ATF Form 6A must contain the information requested on the 
form, including:
    (i) The name and address of the military member;
    (ii) The name of the manufacturer of the firearm or ammunition;
    (iii) The country of manufacture;
    (iv) The type;
    (v) The model;
    (vi) The caliber, gauge, or size;
    (vii) The serial number in the case of firearms; and
    (viii) If applicable, the number of firearms or rounds of ammunition 
released.
    (3) When such military member is on active duty outside the United 
States, the military member may appoint, in writing, an agent to obtain 
the release of the firearm or ammunition from Customs custody for such 
member. Such agent will present sufficient identification of the agent 
and the written authorization to act on behalf of such military member 
to the Customs officer who is to release the firearm or ammunition.
    (c) Firearms determined by the Department of Defense to be war 
souvenirs may be imported into the United States by the military members 
of the U.S. Armed Forces under such provisions and procedures as the 
Department of Defense may issue.

(Paragraph (a) approved by the Office of Management and Budget under 
control number 1512-0018; paragraph (b) approved by the Office of 
Management and Budget under control number 1512-0019)

[T.D. ATF-270, 53 FR 10500, Mar. 31, 1988, as amended by T.D. ATF-426, 
65 FR 38200, June 20, 2000]



Sec. 478.115  Exempt importation.

    (a) Firearms and ammunition may be brought into the United States or 
any possession thereof by any person who can establish to the 
satisfaction of Customs that such firearm or ammunition was previously 
taken out of the United States or any possession thereof by such person. 
Registration on Customs Form 4457 or on any other registration document 
available for this purpose may be completed before departure from the 
United States at any U.S. customhouse or any office of an Director of 
Industry Operations. A bill of sale or other commercial document showing 
transfer of the firearm or ammunition in the United States to such 
person also may be used to establish proof that the firearm or 
ammunition was taken out of the United States by such person. Firearms 
and ammunition furnished under the provisions of section 925(a)(3) of 
the Act to military members of the U.S. Armed Forces on active duty 
outside of the United States also may be imported into the United States 
or any possession thereof by such military members upon establishing to 
the satisfaction of Customs that such firearms and ammunition were so 
obtained.
    (b) Firearms, firearm barrels, and ammunition may be imported or 
brought into the United States by or for the United States or any 
department or agency thereof, or any State or any department, agency, or 
political subdivision thereof. A firearm, firearm barrel or ammunition 
imported or brought into the United States under this paragraph may be 
released from Customs custody upon a showing that

[[Page 64]]

the firearm, firearm barrel or ammunition is being imported or brought 
into the United States by or for such a governmental entity.
    (c) The provisions of this subpart shall not apply with respect to 
the importation into the United States of any antique firearm.
    (d) Firearms and ammunition are not imported into the United States, 
and the provisions of this subpart shall not apply, when such firearms 
and ammunition are brought into the United States by:
    (1) A nonresident of the United States for legitimate hunting or 
lawful sporting purposes, and such firearms and such ammunition as 
remains following such shooting activity are to be taken back out of the 
territorial limits of the United States by such person upon conclusion 
of the shooting activity;
    (2) Foreign military personnel on official assignment to the United 
States who bring such firearms or ammunition into the United States for 
their exclusive use while on official duty in the United States, and 
such firearms and unexpended ammunition are taken back out of the 
territorial limits of the United States by such foreign military 
personnel when they leave the United States;
    (3) Official representatives of foreign governments who are 
accredited to the U.S. Government or are en route to or from other 
countries to which accredited, and such firearms and unexpended 
ammunition are taken back out of the territorial limits of the United 
States by such official representatives of foreign governments when they 
leave the United States;
    (4) Officials of foreign governments and distinguished foreign 
visitors who have been so designated by the Department of State, and 
such firearms and unexpended ammunition are taken back out of the 
territorial limits of the United States by such officials of foreign 
governments and distinguished foreign visitors when they leave the 
United States; and
    (5) Foreign law enforcement officers of friendly foreign governments 
entering the United States on official law enforcement business, and 
such firearms and unexpended ammunition are taken back out of the 
territorial limits of the United States by such foreign law enforcement 
officers when they leave the United States.
    (e) Notwithstanding the provisions of paragraphs (d) (1), (2), (3), 
(4) and (5) of this section, the Secretary of the Treasury or his 
delegate may in the interest of public safety and necessity require a 
permit for the importation or bringing into the United States of any 
firearms or ammunition.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-58, 44 FR 32367, June 6, 1979; T.D. ATF-270, 53 
FR 10500, Mar. 31, 1988; T.D. ATF-471, 67 FR 5426, Feb. 5, 2002]



Sec. 478.116  Conditional importation.

    The Director shall permit the conditional importation or bringing 
into the United States or any possession thereof of any firearm, firearm 
barrel, ammunition, or ammunition feeding device as defined in Sec. 
478.119(b) for the purpose of examining and testing the firearm, firearm 
barrel, ammunition, or ammunition feeding device in connection with 
making a determination as to whether the importation or bringing in of 
such firearm, firearm barrel, ammunition, or ammunition feeding device 
will be authorized under this part. An application on ATF Form 6 for 
such conditional importation shall be filed, in duplicate, with the 
Director. The Director may impose conditions upon any importation under 
this section including a requirement that the firearm, firearm barrel, 
ammunition, or ammunition feeding device be shipped directly from 
Customs custody to the Director and that the person importing or 
bringing in the firearm, firearm barrel, ammunition, or ammunition 
feeding device must agree to either export the firearm, firearm barrel, 
ammunition, or ammunition feeding device or destroy same if a 
determination is made that the firearm, firearm barrel, ammunition, or 
ammunition feeding device may not be imported or brought in under this 
part. A firearm, firearm barrel, ammunition, or ammunition feeding 
device imported or brought into the United States or any possession 
thereof under the provisions of

[[Page 65]]

this section shall be released from Customs custody upon the payment of 
customs duties, if applicable, and in the manner prescribed in the 
conditional authorization issued by the Director.

[T.D. ATF-383, 61 FR 39321, July 29, 1996]



Sec. 478.117  Function outside a customs territory.

    In the insular possessions of the United States outside customs 
territory, the functions performed by U.S. Customs officers under this 
subpart within a customs territory may be performed by the appropriate 
authorities of a territorial government or other officers of the United 
States who have been designated to perform such functions. For the 
purpose of this subpart, the term customs territory means the United 
States, the District of Columbia, and the Commonwealth of Puerto Rico.



Sec. 478.118  Importation of certain firearms classified as curios 
or relics.

    Notwithstanding any other provision of this part, a licensed 
importer may import all rifles and shotguns classified by the Director 
as curios or relics, and all handguns classified by the Director as 
curios or relics that are determined to be generally recognized as 
particularly suitable for or readily adaptable to sporting purposes. The 
importation of such curio or relic firearms must be in accordance with 
the applicable importation provisions of this part and the importation 
provisions of 27 CFR part 447. Curios or relics which fall within the 
definition of ``firearm'' under 26 U.S.C. 5845(a) must also meet the 
importation provisions of 27 CFR part 479 before they may be imported.

[T.D. ATF-202, 50 FR 14383, Apr. 12, 1985]



Sec. 478.119  Importation of ammunition feeding devices.

    (a) No ammunition feeding device shall be imported or brought into 
the United States unless the Director has authorized the importation of 
such device.
    (b) For purposes of this section, an ``ammunition feeding device'' 
is a magazine, belt, drum, feed strip, or similar device for a firearm 
that has a capacity of, or that can be readily restored or converted to 
accept, more than 10 rounds of ammunition. The term does not include an 
attached tubular device designed to accept, and capable of operating 
only with, .22 caliber rimfire ammunition, or a fixed device for a 
manually operated firearm, or a fixed device for a firearm listed in 18 
U.S.C. 922, Appendix A.
    (c) An application for a permit, ATF Form 6, to import or bring an 
ammunition feeding device into the United States or a possession thereof 
under this section shall be filed, in triplicate, with the Director. The 
application shall contain:
    (1) The name and address of the person importing the device,
    (2) A description of the device to be imported, including type and 
cartridge capacity, model and caliber of firearm for which the device 
was made, country of manufacture, and name of the manufacturer if known,
    (3) The unit cost of the device to be imported,
    (4) The country from which to be imported,
    (5) The name and address of the foreign seller and the foreign 
shipper,
    (6) Verification that such device will be marked as required by this 
part, and
    (7) A statement by the importer that the device is being imported 
for sale to purchasers specified in Sec. 478.40a(b) or physical or 
reasonable documentary evidence establishing that the magazine was 
manufactured on or before September 13, 1994. Any one of the following 
examples, which are not meant to be exhaustive, may be sufficient to 
establish the time of manufacture:
    (i) Permanent markings or physical characteristics which establish 
that the magazine was manufactured on or before September 13, 1994;
    (ii) A certification from the importer, under penalty of perjury, 
that the importer maintained continuous custody beginning on a date 
prior to September 14, 1994, and continuing until the date of the 
certification. Such certification shall also be supported by reasonable 
documentary evidence, such as commercial records;
    (iii) A certification from the importer, under penalty of perjury, 
that the magazines sought to be imported

[[Page 66]]

were in the custody and control of a foreign Government on or before 
September 13, 1994, along with reasonable documentary evidence to 
support the certification; or
    (iv) A certification from the importer, under penalty of perjury, 
that the magazine was in the possession of a foreign arms supplier on or 
before September 13, 1994, along with reasonable documentary evidence to 
support the certification.
    (d) The Director shall act upon applications to import ammunition 
feeding devices as expeditiously as possible. If the Director approves 
the application, such approved application shall serve as the permit to 
import the device described therein, and importation of such devices may 
continue to be made by the person importing such devices under the 
approved application (permit) during the period specified thereon. The 
Director shall furnish the approved application (permit) to the 
applicant and retain two copies thereof for administrative use. If the 
Director disapproves the application, the person importing such devices 
shall be notified of the basis for the disapproval.
    (e) An ammunition feeding device imported or brought into the United 
States by a person importing such a device may be released from Customs 
custody to the person importing such a device upon showing that such 
person has obtained a permit from the Director for the importation of 
the device to be released. In obtaining the release from Customs custody 
of such a device authorized by this section to be imported through use 
of a permit, the person importing such a device shall prepare ATF Form 
6A, in duplicate, and furnish the original ATF Form 6A to the Customs 
officer releasing the device. The Customs officer shall, after 
certification, forward the ATF Form 6A to the address specified on the 
form. The ATF Form 6A shall show the name and address of the person 
importing the device, the name of the manufacturer of the device, the 
country of manufacture, the type, model, caliber, size, and the number 
of devices released.
    (f) Within 15 days of the date of release from Customs custody, the 
person importing such a device shall:
    (1) Forward to the address specified on the form a copy of ATF Form 
6A on which shall be reported any error or discrepancy appearing on the 
ATF Form 6A certified by Customs, and
    (2) Pursuant to Sec. 478.92, place all required identification data 
on each imported device manufactured after September 13, 1994, if same 
did not bear such identification data at the time of its release from 
Customs custody.
    (g) The Director may authorize the conditional importation of an 
ammunition feeding device as provided in Sec. 478.116.

(Paragraphs (a), (c), and (d) approved by the Office of Management and 
Budget under control numbers 1512-0017 and 1512-0018; paragraphs (e) and 
(f) approved by the Office of Management and Budget under control number 
1512-0019)

[T.D. ATF-383, 61 FR 39322, July 29, 1996]



Sec. 478.120  Firearms or ammunition imported by or for a nonimmigrant 
alien.

    (a) Any nonimmigrant alien who completes an ATF Form 6 to import 
firearms or ammunition into the United States, or any licensee who 
completes an ATF Form 6 to import firearms or ammunition for a 
nonimmigrant alien, must attach applicable documentation to the Form 6 
(e.g., a hunting license or permit lawfully issued in the United States; 
waiver) establishing the nonimmigrant alien falls within an exception to 
or has obtained a waiver from the nonimmigrant alien prohibition.
    (b) Nonimmigrant aliens importing or bringing firearms or ammunition 
into the United States must provide the United States Customs Service 
with applicable documentation (e.g., a hunting license or permit 
lawfully issued in the United States; waiver) establishing the 
nonimmigrant alien falls within an exception to or has obtained a waiver 
from the nonimmigrant alien prohibition before the firearm or ammunition 
may be imported. This provision applies in all

[[Page 67]]

cases, whether or not a Form 6 is needed to bring the firearms or 
ammunition into the United States.

(Approved by the Office of Management and Budget under control number 
1512-0570)

[T.D. ATF-471, 67 FR 5426, Feb. 5, 2002]



                            Subpart H_Records



Sec. 478.121  General.

    (a) The records pertaining to firearms transactions prescribed by 
this part shall be retained on the licensed premises in the manner 
prescribed by this subpart and for the length of time prescribed by 
Sec. 478.129. The records pertaining to ammunition prescribed by this 
part shall be retained on the licensed premises in the manner prescribed 
by Sec. 478.125.
    (b) ATF officers may, for the purposes and under the conditions 
prescribed in Sec. 478.23, enter the premises of any licensed importer, 
licensed manufacturer, licensed dealer, or licensed collector for the 
purpose of examining or inspecting any record or document required by or 
obtained under this part. Section 923(g) of the Act requires licensed 
importers, licensed manufacturers, licensed dealers, and licensed 
collectors to make such records available for such examination or 
inspection during business hours or, in the case of licensed collectors, 
hours of operation, as provided in Sec. 478.23.
    (c) Each licensed importer, licensed manufacturer, licensed dealer, 
and licensed collector shall maintain such records of importation, 
production, shipment, receipt, sale, or other disposition, whether 
temporary or permanent, of firearms and such records of the disposition 
of ammunition as the regulations contained in this part prescribe. 
Section 922(m) of the Act makes it unlawful for any licensed importer, 
licensed manufacturer, licensed dealer, or licensed collector knowingly 
to make any false entry in, to fail to make appropriate entry in, or to 
fail to properly maintain any such record.
    (d) For recordkeeping requirements for sales by licensees at gun 
shows see Sec. 478.100(c).

(Information collection requirements in paragraph (a) approved by the 
Office of Management and Budget under control number 1512-0129; 
information collection requirements in paragraphs (b) and (c) approved 
by the Office of Management and Budget under control number 1512-0387)

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-191, 49 FR 46891, Nov. 29, 1984; T.D. ATF-208, 
50 FR 26703, June 28, 1985; T.D. ATF-270, 53 FR 10501, Mar. 31, 1988]



Sec. 478.122  Records maintained by importers.

    (a) Each licensed importer shall, within 15 days of the date of 
importation or other acquisition, record the type, model, caliber or 
gauge, manufacturer, country of manufacture, and the serial number of 
each firearm imported or otherwise acquired, and the date such 
importation or other acquisition was made.
    (b) A record of firearms disposed of by a licensed importer to 
another licensee and a separate record of armor piercing ammunition 
dispositions to governmental entities, for exportation, or for testing 
or experimentation authorized under the provisions of Sec. 478.149 
shall be maintained by the licensed importer on the licensed premises. 
For firearms, the record shall show the quantity, type, manufacturer, 
country of manufacture, caliber or gauge, model, serial number of the 
firearms so transferred, the name and license number of the licensee to 
whom the firearms were transferred, and the date of the transaction. For 
armor piercing ammunition, the record shall show the date of the 
transaction, manufacturer, caliber or gauge, quantity of projectiles, 
and the name and address of the purchaser. The information required by 
this paragraph shall be entered in the proper record book not later than 
the seventh day following the date of the transaction, and such 
information shall be recorded under the following formats:

[[Page 68]]



                                     Importer's Firearms Disposition Record
----------------------------------------------------------------------------------------------------------------
                                                                                       Name and
                                                                                    license No. of
 Quantity    Type     Manufacturer    Country of   Caliber or    Model    Serial     licensee to     Date of the
                                      manufacture     gauge                 No.          whom        transaction
                                                                                     transferred
----------------------------------------------------------------------------------------------------------------
 


         Importer's Armor Piercing Ammunition Disposition Record
------------------------------------------------------------------------
                          Calibur or   Quantity of   Purchaser--Name and
  Date    Manufacturer      gauge      projectiles         address
------------------------------------------------------------------------
 

    (c) Notwithstanding the provisions of paragraph (b) of this section, 
the Director of Industry Operations may authorize alternate records to 
be maintained by a licensed importer to record the disposal of firearms 
and armor piercing ammunition when it is shown by the licensed importer 
that such alternate records will accurately and readily disclose the 
information required by paragraph (b) of this section. A licensed 
importer who proposes to use alternate records shall submit a letter 
application, in duplicate, to the Director of Industry Operations and 
shall describe the proposed alternate records and the need therefor. 
Such alternate records shall not be employed by the licensed importer 
until approval in such regard is received from the Director of Industry 
Operations.
    (d) Each licensed importer shall maintain separate records of the 
sales or other dispositions made of firearms to nonlicensees. Such 
records shall be maintained in the form and manner as prescribed by 
Sec. Sec. 478.124 and 478.125 in regard to firearms transaction records 
and records of acquisition and disposition of firearms.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-270, 53 FR 10501, Mar. 31, 1988]



Sec. 478.123  Records maintained by manufacturers.

    (a) Each licensed manufacturer shall record the type, model, caliber 
or gauge, and serial number of each complete firearm manufactured or 
otherwise acquired, and the date such manufacture or other acquisition 
was made. The information required by this paragraph shall be recorded 
not later than the seventh day following the date such manufacture or 
other acquisition was made.
    (b) A record of firearms disposed of by a manufacturer to another 
licensee and a separate record of armor piercing ammunition dispositions 
to governmental entities, for exportation, or for testing or 
experimentation authorized under the provision of Sec. 478.149 shall be 
maintained by the licensed manufacturer on the licensed premises. For 
firearms, the record shall show the quantity, type, model, manufacturer, 
caliber, size or gauge, serial number of the firearms so transferred, 
the name and license number of the licensee to whom the firearms were 
transferred, and the date of the transaction. For armor piercing 
ammunition, the record shall show the manufacturer, caliber or gauge, 
quantity, the name and address of the transferee to whom the armor 
piercing ammunition was transferred, and the date of the transaction. 
The information required by this paragraph shall be entered in the 
proper record book not later than the seventh day following the date of 
the transaction, and such information shall be recorded under the format 
prescribed by Sec. 478.122, except that the name of the manufacturer of 
a firearm or armor piercing ammunition need not be recorded if the 
firearm or armor piercing ammunition is of the manufacturer's own 
manufacture.
    (c) Notwithstanding the provisions of paragraph (b) of this section, 
the Director of Industry Operations may authorize alternate records to 
be maintained by a licensed manufacturer to record the disposal of 
firearms and armor piercing ammunition when it is shown by the licensed 
manufacturer that such alternate records will accurately and readily 
disclose the information required by paragraph (b) of this section. A 
licensed manufacturer who proposes to use alternate records shall submit 
a letter application, in duplicate, to the Director of Industry 
Operations and

[[Page 69]]

shall describe the proposed alternate record and the need therefor. Such 
alternate records shall not be employed by the licensed manufacturer 
until approval in such regard is received from the Director of Industry 
Operations.
    (d) Each licensed manufacturer shall maintain separate records of 
the sales or other dispositions made of firearms to nonlicensees. Such 
records shall be maintained in the form and manner as prescribed by 
Sec. Sec. 478.124 and 478.125 in regard to firearms transaction records 
and records of acquisition and disposition of firearms.

(Approved by the Office of Management and Budget under control number 
1512-0369)

[T.D. ATF-270, 53 FR 10501, Mar. 31, 1988]



Sec. 478.124  Firearms transaction record.

    (a) A licensed importer, licensed manufacturer, or licensed dealer 
shall not sell or otherwise dispose, temporarily or permanently, of any 
firearm to any person, other than another licensee, unless the licensee 
records the transaction on a firearms transaction record, Form 4473: 
Provided, That a firearms transaction record, Form 4473, shall not be 
required to record the disposition made of a firearm delivered to a 
licensee for the sole purpose of repair or customizing when such firearm 
or a replacement firearm is returned to the person from whom received.
    (b) A licensed manufacturer, licensed importer, or licensed dealer 
shall retain in alphabetical (by name of purchaser), chronological (by 
date of disposition), or numerical (by transaction serial number) order, 
and as a part of the required records, each Form 4473 obtained in the 
course of transferring custody of the firearms.
    (c)(1) Prior to making an over-the-counter transfer of a firearm to 
a nonlicensee who is a resident of the State in which the licensee's 
business premises is located, the licensed importer, licensed 
manufacturer, or licensed dealer so transferring the firearm shall 
obtain a Form 4473 from the transferee showing the transferee's name, 
sex, residence address (including county or similar political 
subdivision), date and place of birth; height, weight and race of the 
transferee; the transferee's country of citizenship; the transferee's 
INS-issued alien number or admission number; the transferee's State of 
residence; and certification by the transferee that the transferee is 
not prohibited by the Act from transporting or shipping a firearm in 
interstate or foreign commerce or receiving a firearm which has been 
shipped or transported in interstate or foreign commerce or possessing a 
firearm in or affecting commerce.
    (2) In order to facilitate the transfer of a firearm and enable NICS 
to verify the identity of the person acquiring the firearm, ATF Form 
4473 also requests certain optional information. This information 
includes the transferee's social security number. Such information may 
help avoid the possibility of the transferee being misidentified as a 
felon or other prohibited person.
    (3) After the transferee has executed the Form 4473, the licensee:
    (i) Shall verify the identity of the transferee by examining the 
identification document (as defined in Sec. 478.11) presented, and 
shall note on the Form 4473 the type of identification used;
    (ii) Shall, in the case of a transferee who is an alien legally in 
the United States, cause the transferee to present documentation 
establishing that the transferee is a resident of the State (as defined 
in Sec. 478.11) in which the licensee's business premises is located, 
and shall note on the form the documentation used. Examples of 
acceptable documentation include utility bills or a lease agreement 
which show that the transferee has resided in the State continuously for 
at least 90 days prior to the transfer of the firearm; and
    (iii) Must, in the case of a transferee who is a nonimmigrant alien 
who states that he or she falls within an exception to, or has a waiver 
from, the nonimmigrant alien prohibition, have the transferee present 
applicable documentation establishing the exception or waiver, note on 
the Form 4473 the type of documentation provided, and attach a copy of 
the documentation to the Form 4473.
    (iv) Shall comply with the requirements of Sec. 478.102 and record 
on the form the date on which the licensee

[[Page 70]]

contacted the NICS, as well as any response provided by the system, 
including any identification number provided by the system.
    (4) The licensee shall identify the firearm to be transferred by 
listing on the Form 4473 the name of the manufacturer, the name of the 
importer (if any), the type, model, caliber or gauge, and the serial 
number of the firearm.
    (5) The licensee shall sign and date the form if the licensee does 
not know or have reasonable cause to believe that the transferee is 
disqualified by law from receiving the firearm and transfer the firearm 
described on the Form 4473.
    (d) Prior to making an over-the-counter transfer of a shotgun or 
rifle under the provisions contained in Sec. 478.96(c) to a nonlicensee 
who is not a resident of the State in which the licensee's business 
premises is located, the licensee so transferring the shotgun or rifle, 
and such transferee, shall comply with the requirements of paragraph (c) 
of this section: Provided, That in the case of a transferee who is an 
alien legally in the United States, the documentation required by 
paragraph (c)(3)(ii) of this section need only establish that the 
transferee is a resident of any State and has resided in such State 
continuously for at least 90 days prior to the transfer of the firearm. 
Examples of acceptable documentation include utility bills or a lease 
agreement. The licensee shall note on the form the documentation used.
    (e) Prior to making a transfer of a firearm to any nonlicensee who 
is not a resident of the State in which the licensee's business premises 
is located, and such nonlicensee is acquiring the firearm by loan or 
rental from the licensee for temporary use for lawful sporting purposes, 
the licensed importer, licensed manufacturer, or licensed dealer so 
furnishing the firearm, and such transferee, shall comply with the 
provisions of paragraph (c) of this section, except for the provisions 
of paragraph (c)(3)(ii).
    (f) Form 4473 shall be submitted, in duplicate, to a licensed 
importer, licensed manufacturer, or licensed dealer by a transferee who 
is purchasing or otherwise acquiring a firearm by other than an over-
the-counter transaction, who is not subject to the provisions of Sec. 
478.102(a), and who is a resident of the State in which the licensee's 
business premises are located. The Form 4473 shall show the name, 
address, date and place of birth, height, weight, and race of the 
transferee; and the title, name, and address of the principal law 
enforcement officer of the locality to which the firearm will be 
delivered. The transferee also must date and execute the sworn statement 
contained on the form showing, in case the firearm to be transferred is 
a firearm other than a shotgun or rifle, the transferee is 21 years or 
more of age; in case the firearm to be transferred is a shotgun or 
rifle, the transferee is 18 years or more of age; whether the transferee 
is a citizen of the United States; the transferee's State of residence, 
and in the case of a transferee who is an alien legally in the United 
States, the transferee has resided in that State continuously for at 
least 90 days prior to the transfer of the firearm; the transferee is 
not prohibited by the provisions of the Act from shipping or 
transporting a firearm in interstate or foreign commerce or receiving a 
firearm which has been shipped or transported in interstate or foreign 
commerce or possessing a firearm in or affecting commerce; and the 
transferee's receipt of the firearm would not be in violation of any 
statute of the State or published ordinance applicable to the locality 
in which the transferee resides. Upon receipt of such Forms 4473, the 
licensee shall identify the firearm to be transferred by listing in the 
Forms 4473 the name of the manufacturer, the name of the importer (if 
any), the type, model, caliber or gauge, and the serial number of the 
firearm to be transferred. The licensee shall prior to shipment or 
delivery of the firearm to such transferee, forward by registered or 
certified mail (return receipt requested) a copy of the Form 4473 to the 
principal law enforcement officer named in the Form 4473 by the 
transferee, and shall delay shipment or delivery of the firearm to the 
transferee for a period of at least 7 days following receipt by the 
licensee of the return receipt evidencing delivery of the copy of the 
Form 4473 to such principal law enforcement officer, or the return of 
the copy of the Form

[[Page 71]]

4473 to the licensee due to the refusal of such principal law 
enforcement officer to accept same in accordance with U.S. Postal 
Service regulations. The original Form 4473, and evidence of receipt or 
rejection of delivery of the copy of the Form 4473 sent to the principal 
law enforcement officer, shall be retained by the licensee as a part of 
the records required to be kept under this subpart.
    (g) A licensee who sells or otherwise disposes of a firearm to a 
nonlicensee who is other than an individual, shall obtain from the 
transferee the information required by this section from an individual 
authorized to act on behalf of the transferee. In addition, the licensee 
shall obtain from the individual acting on behalf of the transferee a 
written statement, executed under the penalties of perjury, that the 
firearm is being acquired for the use of and will be the property of the 
transferee, and showing the name and address of that transferee.
    (h) The requirements of this section shall be in addition to any 
other recordkeeping requirement contained in this part.
    (i) A licensee may obtain, upon request, an emergency supply of 
Forms 4473 from any Director of Industry Operations. For normal usage, a 
licensee should request a year's supply from the ATF Distribution 
Center, 7943 Angus Court, Springfield, Virginia 22153.

(Paragraph (c) approved by the Office of Management and Budget under 
control numbers 1512-0544, 1512-0129, and 1512-0570; paragraph (f) 
approved by the Office of Management and Budget under control number 
1512-0130; all other recordkeeping approved by the Office of Management 
and Budget under control number 1512-0129)

[33 FR 18555, Dec. 14, 1968, as amended by T.D. ATF-172, 49 FR 14942, 
Apr. 16, 1984; T.D. ATF-241, 51 FR 39625, Oct. 29, 1986; T.D. ATF-270, 
53 FR 10502, Mar. 31, 1988; T.D. ATF-389, 62 FR 19444, Apr. 21, 1997; 
T.D. ATF-415, 63 FR 58279, Oct. 29, 1998; T.D. ATF-471, 67 FR 5426, Feb. 
5, 2002]



Sec. 478.124a  Firearms transaction record in lieu of record of receipt 
and disposition.

    (a) A licensed dealer acquiring firearms after August 1, 1988 and 
contemplating the disposition of not more than 50 firearms within a 
succeeding 12-month period to licensees or nonlicensees may maintain a 
record of the acquisition and disposition of such firearms on a firearms 
transaction record, Form 4473(LV), Part I or II, in lieu of the records 
prescribed by Sec. 478.125. Such 12-month period shall commence from 
the date the licensed dealer first records the purchase or other 
acuisition of a firearm on Form 4473(LV) pursuant to this section. A 
licensed dealer who maintains records pursuant to this section, but 
whose firearms dispositions exceed 50 firearms within such 12-month 
period, shall make and maintain the acquisition and disposition records 
required by Sec. 478.125 with respect to each firearm exceeding 50.
    (b) Each licensed dealer maintaining firearms acquisition and 
disposition records pursuant to this section shall record the purchase 
or other acquisition of a firearm on Form 4473(LV), Part I or II, in 
accordance with the instructions on the form not later than the close of 
the next business day following the date of such purchase or 
acquisition. However, when disposition is made of a firearm before the 
close of the next business day after the receipt of that firearm, the 
licensed dealer making such disposition shall enter all required 
acquisition information regarding the firearm on the Form 4473(LV) at 
the time such transfer or disposition is made. The record on Form 
4473(LV) shall show the date of receipt, the name and address or the 
name and license number of the person from whom received, the name of 
the manufacturer and importer (if any), the model, serial number, type, 
and caliber or gauge of the firearm.
    (c) Each licensed dealer maintaining firearms acquisition and 
disposition records pursuant to this section shall retain Form 4473(LV), 
Part I or II, reflecting firearms possessed by such business in 
chronological (by date of receipt) or numerical (by transaction serial 
number) order. Forms 4473(LV) reflecting the licensee's sale or 
disposition of firearms shall be retained in alphabetical (by name of 
purchaser), chronological (by date of disposition) or numerical (by 
transaction serial number) order.

[[Page 72]]

    (d) A licensed dealer maintaining records pursuant to this section 
shall record the sale or other disposition of a firearm to another 
licensee by entering on the Form 4473(LV), Part I, associated with such 
firearm, the name and license number of the person to whom transferred 
and by signing and dating the form.
    (e) A licensed dealer shall obtain the Form 4473(LV), Part I, 
associated with the firearm in lieu of a Form 4473 and comply with the 
requirements specified in Sec. 478.124(c) prior to making an over-the-
counter transfer of a firearm to a nonlicensee:
    (1) Who is a resident of the State in which the licensee's business 
premises is located,
    (2) Who is not a resident of the State in which the licensee's 
business premises is located and the firearm is a shotgun or rifle and 
the transfer is under the provisions of Sec. 478.96(c), or
    (3) Who is not a resident of the State in which the licensee's 
business premises is located and who is acquiring the firearm by loan or 
rental for temporary use for lawful sporting purposes.
    (f) A licensed dealer shall obtain the Form 4473(LV), Part II, 
associated with the firearm in lieu of a Form 4473 and comply with the 
requirements specified in Sec. 478.124(f) prior to making a disposition 
of a firearm to a nonlicensee who is purchasing or otherwise acquiring a 
firearm by other than an over-the-counter transaction and who is a 
resident of the State in which the licensee's business premises is 
located. If the licensee's record of the acquisition of the firearm is, 
at the time of the disposition, being maintained on a Form 4473(LV), 
Part I, for over-the-counter transactions, the licensee shall transfer 
the information relative to the receipt of the firearm, as required by 
paragraph (b) of this section, to Form 4473(LV), Part II. The 
corresponding form 4473(LV), Part I, may then be destroyed.

[T.D. ATF-273, 53 FR 24687, June 30, 1988, as amended by T.D. ATF-415, 
63 FR 58280, Oct. 29, 1998]



Sec. 478.125  Record of receipt and disposition.

    (a) Armor piercing ammunition sales by licensed collectors to 
nonlicensees. The sale or other disposition of armor piercing ammunition 
by licensed collectors shall be recorded in a bound record at the time a 
transaction is made. The bound record shall be maintained in 
chronological order by date of sale or disposition of the armor piercing 
ammunition, and shall be retained on the licensed premises of the 
licensee for a period not less than two years following the date of the 
recorded sale or disposition of the armor piercing ammunition. The bound 
record entry shall show:
    (1) The date of the transaction;
    (2) The name of the manufacturer;
    (3) The caliber or gauge;
    (4) The quantity of projectiles;
    (5) The name, address, and date of birth of the nonlicensee; and
    (6) The method used to establish the identity of the armor piercing 
ammunition purchaser.
    The format required for the bound record is as follows:

                                 Disposition Record of Armor Piercing Ammunition
----------------------------------------------------------------------------------------------------------------
                                                              Purchaser          Enter a (x) in the ``known''
                                                       ----------------------  column if purchaser is personally
                                                                              known to you. Otherwise, establish
  Date      Manufacturer    Caliber or    Quantity of                           the purchaser's identification
                               gauge      projectiles    Name and   Date of  -----------------------------------
                                                         address     birth                Driver's    Other type
                                                                                Known      license    (specify)
----------------------------------------------------------------------------------------------------------------
 


However, when a commercial record is made at the time a transaction is 
made, a licensee may delay making an entry into the bound record if the 
provisions of paragraph (d) of this section are complied with.
    (b) Armor piercing ammunition sales by licensed collectors to 
licensees. Sales or other dispositions of armor piercing ammunition from 
a licensed collector to another licensee shall be recorded

[[Page 73]]

and maintained in the manner prescribed in Sec. 478.122(b) for 
importers: Provided, That the license number of the transferee may be 
recorded in lieu of the transferee's address.
    (c) Armor piercing ammunition sales by licensed dealers to 
governmental entities. A record of armor piercing ammunition disposed of 
by a licensed dealer to a governmental entity pursuant to Sec. 
478.99(e) shall be maintained by the licensed dealer on the licensed 
premises and shall show the name of the manufacturer, the caliber or 
gauge, the quantity, the name and address of the entity to which the 
armor piercing ammunition was transferred, and the date of the 
transaction. Such information shall be recorded under the format 
prescribed by Sec. 478.122(b). Each licensed dealer disposing of armor 
piercing ammunition pursuant to Sec. 478.99(e) shall also maintain a 
record showing the date of acquisition of such ammunition which shall be 
filed in an orderly manner separate from other commercial records 
maintained and be readily available for inspection. The records required 
by this paragraph shall be retained on the licensed premises of the 
licensee for a period not less than two years following the date of the 
recorded sale or disposition of the armor piercing ammunition.
    (d) Commercial records of armor piercing ammunition transactions. 
When a commercial record is made at the time of sale or other 
disposition of armor piercing ammunition, and such record contains all 
information required by the bound record prescribed by paragraph (a) of 
this section, the licensed collector transferring the armor piercing 
ammunition may, for a period not exceeding 7 days following the date of 
such transfer, delay making the required entry into such bound record: 
Provided, That the commercial record pertaining to the transfer is:
    (1) Maintained by the licensed collector separate from other 
commercial documents maintained by such licensee, and
    (2) Is readily available for inspection on the licensed premises 
until such time as the required entry into the bound record is made.
    (e) Firearms receipt and disposition by dealers. Except as provided 
in Sec. 478.124a with respect to alternate records for the receipt and 
disposition of firearms by dealers, each licensed dealer shall enter 
into a record each receipt and disposition of firearms. In addition, 
before commencing or continuing a firearms business, each licensed 
dealer shall inventory the firearms possessed for such business and 
shall record same in the record required by this paragraph. The record 
required by this paragraph shall be maintained in bound form under the 
format prescribed below. The purchase or other acquisition of a firearm 
shall, except as provided in paragraph (g) of this section, be recorded 
not later than the close of the next business day following the date of 
such purchase or acquisition. The record shall show the date of receipt, 
the name and address or the name and license number of the person from 
whom received, the name of the manufacturer and importer (if any), the 
model, serial number, type, and the caliber or gauge of the firearm. The 
sale or other disposition of a firearm shall be recorded by the licensed 
dealer not later than 7 days following the date of such transaction. 
When such disposition is made to a nonlicensee, the firearms transaction 
record, Form 4473, obtained by the licensed dealer shall be retained, 
until the transaction is recorded, separate from the licensee's Form 
4473 file and be readily available for inspection. When such disposition 
is made to a licensee, the commercial record of the transaction shall be 
retained, until the transaction is recorded, separate from other 
commercial documents maintained by the licensed dealer, and be readily 
available for inspection. The record shall show the date of the sale or 
other disposition of each firearm, the name and address of the person to 
whom the firearm is transferred, or the name and license number of the 
person to whom transferred if such person is a licensee, or the firearms 
transaction record, Form 4473, serial number if the licensed dealer 
transferring the firearm serially numbers the Forms 4473 and files them 
numerically. The format required for the record of receipt and 
disposition of firearms is as follows:

[[Page 74]]



                                                       Firearms Acquisition and Disposition Record
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    Description of firearm                                            Receipt                    Disposition
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Address or
                                                                                                          Name and                       license No. if
                                                                 Serial               Caliber            address or                    licensee, or Form
           Manufacturer and/or Importer               Model       No.        Type     or gauge    Date    name and     Date     Name    4473 Serial No.
                                                                                                           license                       if Forms 4473
                                                                                                             No.                       filed numerically
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (f) Firearms receipt and disposition by licensed collectors. Each 
licensed collector shall enter into a record each receipt and 
disposition of firearms curios or relics. The record required by this 
paragraph shall be maintained in bound form under the format prescribed 
below. The purchase or other acquisition of a curio or relic shall, 
except as provided in paragraph (g) of this section, be recorded not 
later than the close of the next business day following the date of such 
purchase or other acquisition. The record shall show the date of 
receipt, the name and address or the name and license number of the 
person from whom received, the name of the manufacturer and importer (if 
any), the model, serial number, type, and the caliber or gauge of the 
firearm curio or relic. The sale or other disposition of a curio or 
relic shall be recorded by the licensed collector not later than 7 days 
following the date of such transaction. When such disposition is made to 
a licensee, the commercial record of the transaction shall be retained, 
until the transaction is recorded, separate from other commercial 
documents maintained by the licensee, and be readily available for 
inspection. The record shall show the date of the sale or other 
disposition of each firearm curio or relic, the name and address of the 
person to whom the firearm curio or relic is transferred, or the name 
and license number of the person to whom transferred if such person is a 
licensee, and the date of birth of the transferee if other than a 
licensee. In addition, the licensee shall cause the transferee, if other 
than a licensee, to be identified in any manner customarily used in 
commercial transactions (e.g., a driver's license), and shall note on 
the record the method used. In addition, the licensee shall--
    (1) Cause the transferee, if other than a licensee, to be identified 
in any manner customarily used in commercial transactions (e.g., a 
driver's license), and note on the record the method used, and
    (2) In the case of a transferee who is an alien legally in the 
United States and who is other than a licensee--
    (i) Verify the identity of the transferee by examining an 
identification document (as defined in Sec. 478.11), and
    (ii) Cause the transferee to present documentation establishing that 
the transferee is a resident of the State (as defined in Sec. 478.11) 
in which the licensee's business premises is located if the firearm 
curio or relic is other than a shotgun or rifle, and note on the record 
the documentation used or is a resident of any State and has resided in 
such State continuously for at least 90 days prior to the transfer of 
the firearm if the firearm curio or relic is a shotgun or rifle and 
shall note on the record the documentation used. Examples of acceptable 
documentation include utility bills or a lease agreement which show that 
the transferee has resided in the State continuously for at least 90 
days prior to the transfer of the firearm curio or relic.
    (3) The format required for the record of receipt and disposition of 
firearms by collectors is as follows:

[[Page 75]]



                                                 Firearms Collectors Acquisition and Disposition Record
--------------------------------------------------------------------------------------------------------------------------------------------------------
                           Description of firearm                                Receipt                             Disposition
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Name and         Name and                               For transfers
                                                                                    address         address                   Driver's       to aliens,
                                                      Serial        Caliber         or name         or name     Date of    license No. or  documentation
         Manufacturer and/or importer          Model    No.   Type     or    Date     and    Date     and       birth if        other         used to
                                                                     gauge          license         license   nonlicensee  identification    establish
                                                                                      No.             No.                  if nonlicensee    residency
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
 
 
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (g) Commercial records of firearms received. When a commercial 
record is held by a licensed dealer or licensed collector showing the 
acquisition of a firearm or firearm curio or relic, and such record 
contains all acquisition information required by the bound record 
prescribed by paragraphs (e) and (f) of this section, the licensed 
dealer or licensed collector acquiring such firearm or curio or relic, 
may, for a period not exceeding 7 days following the date of such 
acquisition, delay making the required entry into such bound record: 
Provided, That the commercial record is, until such time as the required 
entry into the bound record is made, (1) maintained by the licensed 
dealer or licensed collector separate from other commercial documents 
maintained by such licensee, and (2) readily available for inspection on 
the licensed premises: Provided further, That when disposition is made 
of a firearm or firearm curio or relic not entered in the bound record 
under the provisions of this paragraph, the licensed dealer or licensed 
collector making such disposition shall enter all required acquisition 
information regarding the firearm or firearm curio or relic in the bound 
record at the time such transfer or disposition is made.
    (h) Alternate records. Notwithstanding the provisions of paragraphs 
(a), (e), and (f) of this section, the Director of Industry Operations 
may authorize alternate records to be maintained by a licensed dealer or 
licensed collector to record the acquisition and disposition of firearms 
or curios or relics and the disposition of armor piercing ammunition 
when it is shown by the licensed dealer or the licensed collector that 
such alternate records will accurately and readily disclose the required 
information. A licensed dealer or licensed collector who proposes to use 
alternate records shall submit a letter application, in duplicate, to 
the Director of Industry Operations and shall describe the proposed 
alternate records and the need therefor. Such alternate records shall 
not be employed by the licensed dealer or licensed collector until 
approval in such regard is received from the Director of Industry 
Operations.
    (i) Requirements for importers and manufacturers. Each licensed 
importer and licensed manufacturer selling or otherwise disposing of 
firearms or armor piercing ammunition to nonlicensees shall maintain 
such records of such transactions as are required of licensed dealers by 
this section.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-270, 53 FR 10503, Mar. 31, 1988, as amended by T.D. ATF-273, 
53 FR 24687, June 30, 1988; T.D. ATF-313, 56 FR 32508, July 17, 1991; 
T.D. ATF-389, 62 FR 19445, Apr. 21, 1997]



Sec. 478.125a  Personal firearms collection.

    (a) Notwithstanding any other provision of this subpart, a licensed 
manufacturer, licensed importer, or licensed dealer is not required to 
comply with the provisions of Sec. 478.102 or record on a firearms 
transaction record, Form 4473, the sale or other disposition of a 
firearm maintained as part of the licensee's personal firearms 
collection: Provided, That
    (1) The licensee has maintained the firearm as part of such 
collection for 1 year from the date the firearm was

[[Page 76]]

transferred from the business inventory into the personal collection or 
otherwise acquired as a personal firearm,
    (2) The licensee recorded in the bound record prescribed by Sec. 
478.125(e) the receipt of the firearm into the business inventory or 
other acquisition,
    (3) The licensee recorded the firearm as a disposition in the bound 
record prescribed by Sec. 478.125(e) when the firearm was transferred 
from the business inventory into the personal firearms collection or 
otherwise acquired as a personal firearm, and
    (4) The licensee enters the sale or other disposition of the firearm 
from the personal firearms collection into a bound record, under the 
format prescribed below, identifying the firearm transferred by 
recording the name of the manufacturer and importer (if any), the model, 
serial number, type, and the caliber or gauge, and showing the date of 
the sale or other disposition, the name and address of the transferee, 
or the name and business address of the transferee if such person is a 
licensee, and the date of birth of the transferee if other than a 
licensee. In addition, the licensee shall cause the transferee, if other 
than a licensee, to be identified in any manner customarily used in 
commercial transactions (e.g., a drivers license). The format required 
for the disposition record of personal firearms is as follows:

                                     Disposition Record of Personal Firearms
----------------------------------------------------------------------------------------------------------------
                       Description of firearm                                         Disposition
----------------------------------------------------------------------------------------------------------------
                                                                                  Name and
                                                                                  address
Manufacturer and/    Model      Serial No.      Type     Caliber or     Date     (business     Date of birth if
   or importer                                             gauge                 address if       nonlicensee
                                                                                 licensee)
----------------------------------------------------------------------------------------------------------------
 

    (b) Any licensed manufacturer, licensed importer, or licensed dealer 
selling or otherwise disposing of a firearm from the licensee's personal 
firearms collection under this section shall be subject to the 
restrictions imposed by the Act and this part on the dispositions of 
firearms by persons other than licensed manufacturers, licensed 
importers, and licensed dealers.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[T.D. ATF-270, 53 FR 10504, Mar. 31, 1988, as amended by T.D. ATF-313, 
56 FR 32509, July 17, 1991; T.D. ATF-415, 63 FR 58280, Oct. 29, 1998]



Sec. 478.126  Furnishing transaction information.

    (a) Each licensee shall, when required by letter issued by the 
Director of Industry Operations, and until notified to the contrary in 
writing by such officer, submit on Form 4483, Report of Firearms 
Transactions, for the periods and at the times specified in the letter 
issued by the Director of Industry Operations, all record information 
required by this subpart, or such lesser record information as the 
Director of Industry Operations in his letter may specify.
    (b) The Director of Industry Operations may authorize the 
information to be submitted in a manner other than that prescribed in 
paragraph (a) of this section when it is shown by a licensee that an 
alternate method of reporting is reasonably necessary and will not 
unduly hinder the effective administration of this part. A licensee who 
proposes to use an alternate method of reporting shall submit a letter 
application, in duplicate, to the Director of Industry Operations and 
shall describe the proposed alternate method of reporting and the need 
therefor. An alternate method of reporting shall not be employed by the 
licensee until approval in such regard is received from the Director of 
Industry Operations.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984]

[[Page 77]]



Sec. 478.126a  Reporting multiple sales or other disposition of pistols 
and revolvers.

    Each licensee shall prepare a report of multiple sales or other 
disposition whenever the licensee sells or otherwise disposes of, at one 
time or during any five consecutive business days, two or more pistols, 
or revolvers, or any combination of pistols and revolvers totaling two 
or more, to an unlicensed person: Provided, That a report need not be 
made where pistols or revolvers, or any combination thereof, are 
returned to the same person from whom they were received. The report 
shall be prepared on Form 3310.4, Report of Multiple Sale or Other 
Disposition of Pistols and Revolvers. Not later than the close of 
business on the day that the multiple sale or other disposition occurs, 
the licensee shall forward two copies of Form 3310.4 to the ATF office 
specified thereon and one copy to the State police or to the local law 
enforcement agency in which the sale or other disposition took place. 
Where the State or local law enforcement officials have notified the 
licensee that a particular official has been designated to receive Forms 
3310.4, the licensee shall forward such forms to that designated 
official. The licensee shall retain one copy of Form 3310.4 and attach 
it to the firearms transaction record, Form 4473, executed upon delivery 
of the pistols or revolvers.

    Example. 1. A licensee sells a pistol and revolver in a single 
transaction to an unlicensed person. This is a multiple sale and must be 
reported not later than the close of business on the date of the 
transaction.
    Example. 2. A licensee sells a pistol on Monday and sells a revolver 
on the following Friday to the same unlicensed person. This is a 
multiple sale and must be reported not later than the close of business 
on Friday. If the licensee sells the same unlicensed person another 
pistol or revolver on the following Monday, this would constitute an 
additional multiple sale and must also be reported.
    Example 3. A licensee maintaining business hours on Monday through 
Saturday sells a revolver to an unlicensed person on Monday and sells 
another revolver to the same person on the following Saturday. This does 
not constitute a multiple sale and need not be reported since the sales 
did not occur during five consecutive business days.

(Approved by the Office of Management and Budget under control number 
1512-0006)

[T.D. ATF-16, 40 FR 19202, May 2, 1975, as amended by T.D. ATF-172, 49 
FR 14942, Apr. 16, 1984; T.D. ATF-270, 53 FR 10505, Mar. 31, 1988; T.D. 
ATF-354, 59 FR 7113, Feb. 14, 1994; T.D. ATF-361, 60 FR 10787, Feb. 27, 
1995]



Sec. 478.127  Discontinuance of business.

    Where a licensed business is discontinued and succeeded by a new 
licensee, the records prescribed by this subpart shall appropriately 
reflect such facts and shall be delivered to the successor. Where 
discontinuance of the business is absolute, the records shall be 
delivered within 30 days following the business discontinuance to the 
ATF Out-of-Business Records Center, Spring Mills Office Park, 2029 
Stonewall Jackson Drive, Falling Waters, West Virginia 25419, or to any 
ATF office in the division in which the business was located: Provided, 
however, Where State law or local ordinance requires the delivery of 
records to other responsible authority, the Chief, National Licensing 
Center may arrange for the delivery of the records required by this 
subpart to such authority: Provided further, That where a licensed 
business is discontinued and succeeded by a new licensee, the records 
may be delivered within 30 days following the business discontinuance to 
the ATF Out-of-Business Records Center or to any ATF office in the 
division in which the business was located.

[T.D. ATF-290, 54 FR 53055, Dec. 27, 1989, as amended by T.D. ATF-363, 
60 FR 17455, Apr. 6, 1995]



Sec. 478.128  False statement or representation.

    (a) Any person who knowingly makes any false statement or 
representation in applying for any license or exemption or relief from 
disability, under the provisions of the Act, shall be fined not more 
than $5,000 or imprisoned not more than 5 years, or both.
    (b) Any person other than a licensed manufacturer, licensed 
importer, licensed dealer, or licensed collector who knowingly makes any 
false statement or representation with respect to any information 
required by the provisions

[[Page 78]]

of the Act or this part to be kept in the records of a person licensed 
under the Act or this part shall be fined not more than $5,000 or 
imprisoned not more than 5 years, or both.
    (c) Any licensed manufacturer, licensed importer, licensed dealer, 
or licensed collector who knowingly makes any false statement or 
representation with respect to any information required by the 
provisions of the Act or this part to be kept in the records of a person 
licensed under the Act or this part shall be fined not more than $1,000 
or imprisoned not more than 1 year, or both.

[T.D. ATF-270, 53 FR 10505, Mar. 31, 1988]



Sec. 478.129  Record retention.

    (a) Records prior to Act. Licensed importers and licensed 
manufacturers may dispose of records of sale or other disposition of 
firearms prior to December 16, 1968. Licensed dealers and licensed 
collectors may dispose of all records of firearms transactions that 
occurred prior to December 16, 1968.
    (b) Firearms transaction record. Licensees shall retain each Form 
4473 and Form 4473(LV) for a period of not less than 20 years after the 
date of sale or disposition. Where a licensee has initiated a NICS check 
for a proposed firearms transaction, but the sale, delivery, or transfer 
of the firearm is not made, the licensee shall record any transaction 
number on the Form 4473, and retain the Form 4473 for a period of not 
less than 5 years after the date of the NICS inquiry. Forms 4473 shall 
be retained in the licensee's records as provided in Sec. 478.124(b): 
Provided, That Forms 4473 with respect to which a sale, delivery or 
transfer did not take place shall be separately retained in alphabetical 
(by name of transferee) or chronological (by date of transferee's 
certification) order.
    (c) Statement of intent to obtain a handgun, reports of multiple 
sales or other disposition of pistols and revolvers, and reports of 
theft or loss of firearms. Licensees shall retain each Form 5300.35 
(Statement of Intent to Obtain a Handgun(s)) for a period of not less 
than 5 years after notice of the intent to obtain the handgun was 
forwarded to the chief law enforcement officer, as defined in Sec. 
478.150(c). Licensees shall retain each copy of Form 3310.4 (Report of 
Multiple Sale or Other Disposition of Pistols and Revolvers) for a 
period of not less than 5 years after the date of sale or other 
disposition. Licensees shall retain each copy of Form 3310.11 (Federal 
Firearms Licensee Theft/Loss Report) for a period of not less than 5 
years after the date the theft or loss was reported to ATF.
    (d) Records of importation and manufacture. Licensees will maintain 
permanent records of the importation, manufacture, or other acquisition 
of firearms, including ATF Forms 6 and 6A as required by subpart G of 
this part. Licensed importers' records and licensed manufacturers' 
records of the sale or other disposition of firearms after December 15, 
1968, shall be retained through December 15, 1988, after which records 
of transactions over 20 years of age may be discarded.
    (e) Records of dealers and collectors under the Act. The records 
prepared by licensed dealers and licensed collectors under the Act of 
the sale or other disposition of firearms and the corresponding record 
of receipt of such firearms shall be retained through December 15, 1988, 
after which records of transactions over 20 years of age may be 
discarded.
    (f) Retention of records of transactions in semiautomatic assault 
weapons. The documentation required by Sec. Sec. 478.40(c) and 478.132 
shall be retained in the licensee's permanent records for a period of 
not less than 5 years after the date of sale or other disposition.

(Paragraph (b) approved by the Office of Management and Budget under 
control number 1512-0544; Paragraph (c) approved by the Office of 
Management and Budget under control numbers 1512-0520, 1512-0006, and 
1512-0524; Paragraph (f) approved by the Office of Management and Budget 
under control number 1512-0526; all other recordkeeping approved by the 
Office of Management and Budget under control number 1512-0129)

[T.D. ATF-208, 50 FR 26704, June 28, 1985 and correctly designated at 50 
FR 35081, Aug. 29, 1985, as amended by T.D. ATF-273, 53 FR 24687, June 
30, 1988; T.D. ATF-361, 60 FR 10787, Feb. 27, 1995; T.D. ATF-363, 60 FR 
17455, Apr. 6, 1995; T.D. ATF-415, 63 FR 58280, Oct. 29, 1998; T.D. ATF-
426, 65 FR 38201, June 20, 2000]

[[Page 79]]



Sec. 478.131  Firearms transactions not subject to a NICS check.

    (a)(1) A licensed importer, licensed manufacturer, or licensed 
dealer whose sale, delivery, or transfer of a firearm is made pursuant 
to the alternative provisions of Sec. 478.102(d) and is not subject to 
the NICS check prescribed by Sec. 478.102(a) shall maintain the records 
required by paragraph (a) of this section.
    (2) If the transfer is pursuant to a permit or license in accordance 
with Sec. 478.102(d)(1), the licensee shall either retain a copy of the 
purchaser's permit or license and attach it to the firearms transaction 
record, Form 4473, or record on the firearms transaction record, Form 
4473, any identifying number, the date of issuance, and the expiration 
date (if provided) from the permit or license.
    (3) If the transfer is pursuant to a certification by ATF in 
accordance with Sec. Sec. 478.102(d)(3) and 478.150, the licensee shall 
maintain the certification as part of the records required to be kept 
under this subpart and for the period prescribed for the retention of 
Form 5300.35 in Sec. 478.129(c).
    (b) The requirements of this section shall be in addition to any 
other recordkeeping requirements contained in this part.

(Approved by the Office of Management and Budget under control number 
1512-0544)

[T.D. ATF-415, 63 FR 58280, Oct. 29, 1998]



Sec. 478.132  Dispositions of semiautomatic assault weapons and large 

capacity ammunition feeding devices to law enforcement officers for 
official use and to 
          employees or contractors of nuclear facilities.

    Licensed manufacturers, licensed importers, and licensed dealers in 
semiautomatic assault weapons, as well as persons who manufacture, 
import, or deal in large capacity ammunition feeding devices, may 
transfer such weapons and devices manufactured after September 13, 1994, 
to law enforcement officers and to employees or contractors of nuclear 
facilities with the following documentation:
    (a) Law enforcement officers. (1) A written statement from the 
purchasing officer, under penalty of perjury, stating that the weapon or 
device is being purchased for use in performing official duties and that 
the weapon or device is not being acquired for personal use or for 
purposes of transfer or resale; and
    (2) A written statement from a supervisor of the purchasing officer, 
on agency letterhead, under penalty of perjury, stating that the 
purchasing officer is acquiring the weapon or device for use in official 
duties, that the firearm is suitable for use in performing official 
duties, and that the weapon or device is not being acquired for personal 
use or for purposes of transfer or resale.
    (b) Employees or contractors of nuclear facilities. (1) Evidence 
that the employee is employed by a nuclear facility licensed pursuant to 
42 U.S.C. 2133 or evidence that the contractor has a valid contract with 
such a facility.
    (2) A written statement from the purchasing employee or contractor 
under penalty of perjury, stating that the weapon or device is being 
purchased for one of the purposes authorized in Sec. Sec. 478.40(b)(7) 
and 478.40(b)(3), i.e., on-site physical protection, on-site or off-site 
training, or off-site transportation of nuclear materials.
    (3) A written statement from a supervisor of the purchasing employee 
or contractor, on agency or company letterhead, under penalty of 
perjury, stating that the purchasing employee or contractor is acquiring 
the weapon or device for use in official duties, and that the weapon or 
device is not being acquired for personal use or for purposes of 
transfer or resale.

(Approved by the Office of Management and Budget under control number 
1512-0526)

[T.D. ATF-396, 63 FR 12646, Mar. 16, 1998]



Sec. 478.133  Records of transactions in semiautomatic assault weapons.

    The evidence specified in Sec. 478.40(c), relating to transactions 
in semiautomatic assault weapons, shall be retained in the permanent 
records of the manufacturer or dealer and in the records of the licensee 
to whom the weapons are transferred.

(Approved by the Office of Management and Budget under control number 
1512-0526)

[T.D. ATF-363, 60 FR 17455, Apr. 6, 1995]

[[Page 80]]



Sec. 478.134  Sale of firearms to law enforcement officers.

    (a) Law enforcement officers purchasing firearms for official use 
who provide the licensee with a certification on agency letterhead, 
signed by a person in authority within the agency (other than the 
officer purchasing the firearm), stating that the officer will use the 
firearm in official duties and that a records check reveals that the 
purchasing officer has no convictions for misdemeanor crimes of domestic 
violence are not required to complete Form 4473 or Form 5300.35. The law 
enforcement officer purchasing the firearm may purchase a firearm from a 
licensee in another State, regardless of where the officer resides or 
where the agency is located.
    (b)(1) The following individuals are considered to have sufficient 
authority to certify that law enforcement officers purchasing firearms 
will use the firearms in the performance of official duties:
    (i) In a city or county police department, the director of public 
safety or the chief or commissioner of police.
    (ii) In a sheriff's office, the sheriff.
    (iii) In a State police or highway patrol department, the 
superintendent or the supervisor in charge of the office to which the 
State officer or employee is assigned.
    (iv) In Federal law enforcement offices, the supervisor in charge of 
the office to which the Federal officer or employee is assigned.
    (2) An individual signing on behalf of the person in authority is 
acceptable, provided there is a proper delegation of authority.
    (c) Licensees are not required to prepare a Form 4473 or Form 
5300.35 covering sales of firearm made in accordance with paragraph (a) 
of this section to law enforcement officers for official use. However, 
disposition to the officer must be entered into the licensee's permanent 
records, and the certification letter must be retained in the licensee's 
files.

[T.D. ATF-401, 63 FR 35523, June 30, 1998]



             Subpart I_Exemptions, Seizures, and Forfeitures



Sec. 478.141  General.

    With the exception of Sec. Sec. 478.32(a)(9) and (d)(9) and 
478.99(c)(9), the provisions of this part shall not apply with respect 
to:
    (a) The transportation, shipment, receipt, possession, or 
importation of any firearm or ammunition imported for, sold or shipped 
to, or issued for the use of, the United States or any department or 
agency thereof or any State or any department, agency, or political 
subdivision thereof.
    (b) The shipment or receipt of firearms or ammunition when sold or 
issued by the Secretary of the Army pursuant to section 4308 of Title 
10, U.S.C., and the transportation of any such firearm or ammunition 
carried out to enable a person, who lawfully received such firearm or 
ammunition from the Secretary of the Army, to engage in military 
training or in competitions.
    (c) The shipment, unless otherwise prohibited by the Act or any 
other Federal law, by a licensed importer, licensed manufacturer, or 
licensed dealer to a member of the U.S. Armed Forces on active duty 
outside the United States or to clubs, recognized by the Department of 
Defense, whose entire membership is composed of such members of the U.S. 
Armed Forces, and such members or clubs may receive a firearm or 
ammunition determined by the Director to be generally recognized as 
particularly suitable for sporting purposes and intended for the 
personal use of such member or club. Before making a shipment of 
firearms or ammunition under the provisions of this paragraph, a 
licensed importer, licensed manufacturer, or licensed dealer may submit 
a written request, in duplicate, to the Director for a determination by 
the Director whether such shipment would constitute a violation of the 
Act or any other Federal law, or whether the firearm or ammunition is 
considered by the Director to be generally recognized as particularly 
suitable for sporting purposes.

[[Page 81]]

    (d) The transportation, shipment, receipt, possession, or 
importation of any antique firearm.

[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 10835, Apr. 15, 1975, 
and amended by T.D. ATF-241, 51 FR 39628, Oct. 29, 1986; T.D. ATF-270, 
53 FR 10505, Mar. 31, 1988; T.D. ATF-313, 56 FR 32509, July 17, 1991; 
T.D. ATF-401, 63 FR 35523, June 30, 1998]



Sec. 478.142  Effect of pardons and expunctions of convictions.

    (a) A pardon granted by the President of the United States regarding 
a Federal conviction for a crime punishable by imprisonment for a term 
exceeding 1 year shall remove any disability which otherwise would be 
imposed by the provisions of this part with respect to that conviction.
    (b) A pardon granted by the Governor of a State or other State 
pardoning authority or by the pardoning authority of a foreign 
jurisdiction with respect to a conviction, or any expunction, reversal, 
setting aside of a conviction, or other proceeding rendering a 
conviction nugatory, or a restoration of civil rights shall remove any 
disability which otherwise would be imposed by the provisions of this 
part with respect to the conviction, unless:
    (1) The pardon, expunction, setting aside, or other proceeding 
rendering a conviction nugatory, or restoration of civil rights 
expressly provides that the person may not ship, transport, possess or 
receive firearms; or
    (2) The pardon, expunction, setting aside, or other proceeding 
rendering a conviction nugatory, or restoration of civil rights did not 
fully restore the rights of the person to possess or receive firearms 
under the law of the jurisdiction where the conviction occurred.

[T.D. ATF-270, 53 FR 10505, Mar. 31, 1988]



Sec. 478.143  Relief from disabilities incurred by indictment.

    A licensed importer, licensed manufacturer, licensed dealer, or 
licensed collector who is indicted for a crime punishable by 
imprisonment for a term exceeding 1 year may, notwithstanding any other 
provision of the Act, continue operations pursuant to his existing 
license during the term of such indictment and until any conviction 
pursuant to the indictment becomes final: Provided, That if the term of 
the license expires during the period between the date of the indictment 
and the date the conviction thereunder becomes final, such importer, 
manufacturer, dealer, or collector must file a timely application for 
the renewal of his license in order to continue operations. Such 
application shall show that the applicant is under indictment for a 
crime punishable by imprisonment for a term exceeding 1 year.



Sec. 478.144  Relief from disabilities under the Act.

    (a) Any person may make application for relief from the disabilities 
under section 922 (g) and (n) of the Act (see Sec. 478.32).
    (b) An application for such relief shall be filed, in triplicate, 
with the Director. It shall include the information required by this 
section and such other supporting data as the Director and the applicant 
deem appropriate.
    (c) Any record or document of a court or other government entity or 
official required by this paragraph to be furnished by an applicant in 
support of an application for relief shall be certified by the court or 
other government entity or official as a true copy. An application shall 
include:
    (1) In the case of an applicant who is an individual, a written 
statement from each of 3 references, who are not related to the 
applicant by blood or marriage and have known the applicant for at least 
3 years, recommending the granting of relief;
    (2) Written consent to examine and obtain copies of records and to 
receive statements and information regarding the applicant's background, 
including records, statements and other information concerning 
employment, medical history, military service, and criminal record;
    (3) In the case of an applicant under indictment, a copy of the 
indictment or information;
    (4) In the case of an applicant having been convicted of a crime 
punishable by imprisonment for a term exceeding 1 year, a copy of the 
indictment or information on which the applicant was convicted, the 
judgment of conviction or record of any plea of nolo

[[Page 82]]

contendere or plea of guilty or finding of guilt by the court, and any 
pardon, expunction, setting aside or other record purporting to show 
that the conviction was rendered nugatory or that civil rights were 
restored;
    (5) In the case of an applicant who has been adjudicated a mental 
defective or committed to a mental institution, a copy of the order of a 
court, board, commission, or other lawful authority that made the 
adjudication or ordered the commitment, any petition that sought to have 
the applicant so adjudicated or committed, any medical records 
reflecting the reasons for commitment and diagnoses of the applicant, 
and any court order or finding of a court, board, commission, or other 
lawful authority showing the applicant's discharge from commitment, 
restoration of mental competency and the restoration of rights;
    (6) In the case of an applicant who has been discharged from the 
Armed Forces under dishonorable conditions, a copy of the applicant's 
summary of service record (Department of Defense Form 214), charge sheet 
(Department of Defense Form 458), and final court martial order;
    (7) In the case of an applicant who, having been a citizen of the 
United States, has renounced his or her citizenship, a copy of the 
formal renunciation of nationality before a diplomatic or consular 
officer of the United States in a foreign state or before an officer 
designated by the Attorney General when the United States was in a state 
of war (see 8 U.S.C. 1481(a) (5) and (6)); and
    (8) In the case of an applicant who has been convicted of a 
misdemeanor crime of domestic violence, a copy of the indictment or 
information on which the applicant was convicted, the judgment of 
conviction or record of any plea of nolo contendere or plea of guilty or 
finding of guilt by the court, and any pardon, expunction, setting aside 
or other record purporting to show that the conviction was rendered 
nugatory or that civil rights were restored.
    (d) The Director may grant relief to an applicant if it is 
established to the satisfaction of the Director that the circumstances 
regarding the disability, and the applicant's record and reputation, are 
such that the applicant will not be likely to act in a manner dangerous 
to public safety, and that the granting of the relief would not be 
contrary to the public interest. The Director will not ordinarily grant 
relief if the applicant has not been discharged from parole or probation 
for a period of at least 2 years. Relief will not be granted to an 
applicant who is prohibited from possessing all types of firearms by the 
law of the State where such applicant resides.
    (e) In addition to meeting the requirements of paragraph (d) of this 
section, an applicant who has been adjudicated a mental defective or 
committed to a mental institution will not be granted relief unless the 
applicant was subsequently determined by a court, board, commission, or 
other lawful authority to have been restored to mental competency, to be 
no longer suffering from a mental disorder, and to have had all rights 
restored.
    (f) Upon receipt of an incomplete or improperly executed application 
for relief, the applicant shall be notified of the deficiency in the 
application. If the application is not corrected and returned within 30 
days following the date of notification, the application shall be 
considered as having been abandoned.
    (g) Whenever the Director grants relief to any person pursuant to 
this section, a notice of such action shall be promptly published in the 
Federal Register, together with the reasons therefor.
    (h) A person who has been granted relief under this section shall be 
relieved of any disabilities imposed by the Act with respect to the 
acquisition, receipt, transfer, shipment, transportation, or possession 
of firearms or ammunition and incurred by reason of such disability.
    (i)(1) A licensee who incurs disabilities under the Act (see Sec. 
478.32(a)) during the term of a current license or while the licensee 
has pending a license renewal application, and who files an application 
for removal of such disabilities, shall not be barred from licensed 
operations for 30 days following the date on which the applicant was 
first subject to such disabilities (or 30 days

[[Page 83]]

after the date upon which the conviction for a crime punishable by 
imprisonment for a term exceeding 1 year becomes final), and if the 
licensee files the application for relief as provided by this section 
within such 30-day period, the licensee may further continue licensed 
operations during the pendency of the application. A licensee who does 
not file such application within such 30-day period shall not continue 
licensed operations beyond 30 days following the date on which the 
licensee was first subject to such disabilities (or 30 days from the 
date the conviction for a crime punishable by imprisonment for a term 
exceeding 1 year becomes final).
    (2) In the event the term of a license of a person expires during 
the 30-day period specified in paragraph (i)(1) of this section, or 
during the pendency of the application for relief, a timely application 
for renewal of the license must be filed in order to continue licensed 
operations. Such license application shall show that the applicant is 
subject to Federal firearms disabilities, shall describe the event 
giving rise to such disabilities, and shall state when the disabilities 
were incurred.
    (3) A licensee shall not continue licensed operations beyond 30 days 
following the date the Director issues notification that the licensee's 
applications for removal of disabilities has been denied.
    (4) When as provided in this paragraph a licensee may no longer 
continue licensed operations, any application for renewal of license 
filed by the licensee during the pendency of the application for removal 
of disabilities shall be denied by the Director of Industry Operations.

[T.D. ATF-270, 53 FR 10506, Mar. 31, 1988, as amended by T.D. ATF-313, 
56 FR 32509, July 17, 1991; 56 FR 43649, Sept. 3, 1991; T.D. ATF-401, 63 
FR 35523, June 30, 1998]



Sec. 478.145  Research organizations.

    The provisions of Sec. 478.98 with respect to the sale or delivery 
of destructive devices, machine guns, short-barreled shotguns, and 
short-barreled rifles shall not apply to the sale or delivery of such 
devices and weapons to any research organization designated by the 
Director to receive same. A research organization desiring such 
designation shall submit a letter application, in duplicate, to the 
Director. Such application shall contain the name and address of the 
research organization, the names and addresses of the persons directing 
or controlling, directly or indirectly, the policies and management of 
such organization, the nature and purpose of the research being 
conducted, a description of the devices and weapons to be received, and 
the identity of the person or persons from whom such devices and weapons 
are to be received.

[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]



Sec. 478.146  Deliveries by mail to certain persons.

    The provisions of this part shall not be construed as prohibiting a 
licensed importer, licensed manufacturer, or licensed dealer from 
depositing a firearm for conveyance in the mails to any officer, 
employee, agent, or watchman who, pursuant to the provisions of section 
1715 of title 18, U.S.C., is eligible to receive through the mails 
pistols, revolvers, and other firearms capable of being concealed on the 
person, for use in connection with his official duties.



Sec. 478.147  Return of firearm.

    A person not otherwise prohibited by Federal, State or local law may 
ship a firearm to a licensed importer, licensed manufacturer, or 
licensed dealer for any lawful purpose, and, notwithstanding any other 
provision of this part, the licensed manufacturer, licensed importer, or 
licensed dealer may return in interstate or foreign commerce to that 
person the firearm or a replacement firearm of the same kind and type. 
See Sec. 478.124(a) for requirements of a Form 4473 prior to return. A 
person not otherwise prohibited by Federal, State or local law may ship 
a firearm curio or relic to a licensed collector for any lawful purpose, 
and, notwithstanding any other provision of this part, the licensed 
collector may return in interstate or foreign commerce to that person 
the firearm curio or relic.

[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]

[[Page 84]]



Sec. 478.148  Armor piercing ammunition intended for sporting or 
industrial purposes.

    The Director may exempt certain armor piercing ammunition from the 
requirements of this part. A person who desires to obtain an exemption 
under this section for any such ammunition which is primarily intended 
for sporting purposes or intended for industrial purposes, including 
charges used in oil and gas well perforating devices, shall submit a 
written request to the Director. Each request shall be executed under 
the penalties of perjury and contain a complete and accurate description 
of the ammunition, the name and address of the manufacturer or importer, 
the purpose of and use for which it is designed and intended, and any 
photographs, diagrams, or drawings as may be necessary to enable the 
Director to make a determination. The Director may require that a sample 
of the ammunition be submitted for examination and evaluation.

[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]



Sec. 478.149  Armor piercing ammunition manufactured or imported for 
the purpose of testing or experimentation.

    The provisions of Sec. Sec. 478.37 and 478.99(d) with respect to 
the manufacture or importation of armor piercing ammunition and the sale 
or delivery of armor piercing ammunition by manufacturers and importers 
shall not apply to the manufacture, importation, sale or delivery of 
armor piercing ammunition for the purpose of testing or experimentation 
as authorized by the Director. A person desiring such authorization to 
receive armor piercing ammunition shall submit a letter application, in 
duplicate, to the Director. Such application shall contain the name and 
addresses of the persons directing or controlling, directly or 
indirectly, the policies and management of the applicant, the nature or 
purpose of the testing or experimentation, a description of the armor 
piercing ammunition to be received, and the identity of the manufacturer 
or importer from whom such ammunition is to be received. The approved 
application shall be submitted to the manufacturer or importer who shall 
retain a copy as part of the records required by subpart H of this part.

[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]



Sec. 478.150  Alternative to NICS in certain geographical locations.

    (a) The provisions of Sec. 478.102(d)(3) shall be applicable when 
the Director has certified that compliance with the provisions of Sec. 
478.102(a)(1) is impracticable because:
    (1) The ratio of the number of law enforcement officers of the State 
in which the transfer is to occur to the number of square miles of land 
area of the State does not exceed 0.0025;
    (2) The business premises of the licensee at which the transfer is 
to occur are extremely remote in relation to the chief law enforcement 
officer; and
    (3) There is an absence of telecommunications facilities in the 
geographical area in which the business premises are located.
    (b) A licensee who desires to obtain a certification under this 
section shall submit a written request to the Director. Each request 
shall be executed under the penalties of perjury and contain information 
sufficient for the Director to make such certification. Such information 
shall include statistical data, official reports, or other statements of 
government agencies pertaining to the ratio of law enforcement officers 
to the number of square miles of land area of a State and statements of 
government agencies and private utility companies regarding the absence 
of telecommunications facilities in the geographical area in which the 
licensee's business premises are located.
    (c) For purposes of this section and Sec. 478.129(c), the ``chief 
law enforcement officer'' means the chief of police, the sheriff, or an 
equivalent officer or the designee of any such individual.

(Approved by the Office of Management and Budget under control number 
1512-0544)

[T.D. ATF-415, 63 FR 58280, Oct. 29, 1998]



Sec. 478.151  Semiautomatic rifles or shotguns for testing or 
experimentation.

    (a) The provisions of Sec. 478.39 shall not apply to the assembly 
of semiautomatic rifles or shotguns for the purpose

[[Page 85]]

of testing or experimentation as authorized by the Director.
    (b) A person desiring authorization to assemble nonsporting 
semiautomatic rifles or shotguns shall submit a written request, in 
duplicate, to the Director. Each such request shall be executed under 
the penalties of perjury and shall contain a complete and accurate 
description of the firearm to be assembled, and such diagrams or 
drawings as may be necessary to enable the Director to make a 
determination. The Director may require the submission of the firearm 
parts for examination and evaluation. If the submission of the firearm 
parts is impractical, the person requesting the authorization shall so 
advise the Director and designate the place where the firearm parts will 
be available for examination and evaluation.

[T.D. ATF-346, 58 FR 40590, July 29, 1993]



Sec. 478.152  Seizure and forfeiture.

    (a) Any firearm or ammunition involved in or used in any knowing 
violation of subsections (a)(4), (a)(6), (f), (g), (h), (i), (j), or (k) 
of section 922 of the Act, or knowing importation or bringing into the 
United States or any possession thereof any firearm or ammunition in 
violation of section 922(l) of the Act, or knowing violation of section 
924 of the Act, or willful violation of any other provision of the Act 
or of this part, or any violation of any other criminal law of the 
United States, or any firearm or ammunition intended to be used in any 
offense referred to in paragraph (c) of this section, where such intent 
is demonstrated by clear and convincing evidence, shall be subject to 
seizure and forfeiture, and all provisions of the Internal Revenue Code 
of 1986 relating to the seizure, forfeiture, and disposition of 
firearms, as defined in section 5845(a) of that Code, shall, so far as 
applicable, extend to seizures and forfeitures under the provisions of 
the Act: Provided, That upon acquittal of the owner or possessor, or 
dismissal of the charges against such person other than upon motion of 
the Government prior to trial, or lapse of or court termination of the 
restraining order to which he is subject, the seized or relinquished 
firearms or ammunition shall be returned forthwith to the owner or 
possessor or to a person delegated by the owner or possessor unless the 
return of the firearms or ammunition would place the owner or possessor 
or the delegate of the owner or possessor in violation of law. Any 
action or proceeding for the forfeiture of firearms or ammunition shall 
be commenced within 120 days of such seizure.
    (b) Only those firearms or quantities of ammunition particularly 
named and individually identified as involved in or used in any 
violation of the provisions of the Act or this part, or any other 
criminal law of the United States or as intended to be used in any 
offense referred to in paragraph (c) of this section, where such intent 
is demonstrated by clear and convincing evidence, shall be subject to 
seizure, forfeiture and disposition.
    (c) The offenses referred to in paragraphs (a) and (b) of this 
section for which firearms and ammunition intended to be used in such 
offenses are subject to seizure and forfeiture are:
    (1) Any crime of violence, as that term is defined in section 
924(c)(3) of the Act;
    (2) Any offense punishable under the Controlled Substances Act (21 
U.S.C. 801 et seq.) or the Controlled Substances Import and Export Act 
(21 U.S.C. 951 et seq.);
    (3) Any offense described in section 922(a)(1), 922(a)(3), 
922(a)(5), or 922(b)(3) of the Act, where the firearm or ammunition 
intended to be used in such offense is involved in a pattern of 
activities which includes a violation of any offense described in 
section 922(a)(1), 922(a)(3), 922(a)(5), or 922(b)(3) of the Act;
    (4) Any offense described in section 922(d) of the Act where the 
firearm or ammunition is intended to be used in such offense by the 
transferor of such firearm or ammunition;
    (5) Any offense described in section 922(i), 922(j), 922(l), 922(n), 
or 924(b) of the Act; and
    (6) Any offense which may be prosecuted in a court of the United 
States

[[Page 86]]

which involves the exportation of firearms or ammunition.

[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988; Redesignated by T.D. ATF-354, 
59 FR 7114, Feb. 14, 1994, and further redesignated by T.D. ATF-361, 60 
FR 10788, Feb. 27, 1995; T.D. ATF-363, 60 FR 17455, Apr. 6, 1995]



Sec. 478.153  Semiautomatic assault weapons and large capacity ammunition 

feeding devices manufactured or imported for the purposes of testing or 
          experimentation.

    The provisions of Sec. 478.40 with respect to the manufacture, 
transfer, or possession of a semiautomatic assault weapon, and Sec. 
478.40a with respect to large capacity ammunition feeding devices, shall 
not apply to the manufacture, transfer, or possession of such weapons or 
devices by a manufacturer or importer for the purposes of testing or 
experimentation as authorized by the Director. A person desiring such 
authorization shall submit a letter application, in duplicate, to the 
Director. Such application shall contain the name and addresses of the 
persons directing or controlling, directly or indirectly, the policies 
and management of the applicant, the nature or purpose of the testing or 
experimentation, a description of the weapons or devices to be 
manufactured or imported, and the source of the weapons or devices. The 
approved application shall be retained as part of the records required 
by subpart H of this part.

[T.D. ATF-363, 60 FR 17456, Apr. 6, 1995]

Subpart J [Reserved]



                          Subpart K_Exportation



Sec. 478.171  Exportation.

    Firearms and ammunition shall be exported in accordance with the 
applicable provisions of section 38 of the Arms Export Control Act (22 
U.S.C. 2778) and regulations thereunder. However, licensed 
manufacturers, licensed importers, and licensed dealers exporting 
firearms shall maintain records showing the manufacture or acquisition 
of the firearms as required by this part and records showing the name 
and address of the foreign consignee of the firearms and the date the 
firearms were exported. Licensed manufacturers and licensed importers 
exporting armor piercing ammunition and semiautomatic assault weapons 
manufactured after September 13, 1994, shall maintain records showing 
the name and address of the foreign consignee and the date the armor 
piercing ammunition or semiautomatic assault weapons were exported.

[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988; T.D. ATF-363, 60 FR 17456, 
Apr. 6, 1995]



PART 479_MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER FIREARMS
--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
479.1 General.

                          Subpart B_Definitions

479.11 Meaning of terms.

          Subpart C_Administrative and Miscellaneous Provisions

479.21 Forms prescribed.
479.22 Right of entry and examination.
479.23 Restrictive use of required information.
479.24 Destructive device determination.
479.25 Collector's items.
479.26 Alternate methods or procedures; emergency variations from 
          requirements.

                 Subpart D_Special (Occupational) Taxes

479.31 Liability for tax.
479.32 Special (occupational) tax rates.
479.32a Reduced rate of tax for small importers and manufacturers.
479.33 Special exemption.
479.34 Special tax registration and return.
479.35 Employer identification number.
479.36 The special tax stamp, receipt for special (occupational) taxes.
479.37 Certificates in lieu of stamps lost or destroyed.
479.38 Engaging in business at more than one location.
479.39 Engaging in more than one business at the same location.
479.40 Partnership liability.
479.41 Single sale.

                           Change of Ownership

479.42 Changes through death of owner.
479.43 Changes through bankruptcy of owner.
479.44 Change in partnership or unincorporated association.

[[Page 87]]

479.45 Changes in corporation.

                       Change of Business Location

479.46 Notice by taxpayer.

                          Change of Trade Name

479.47 Notice by taxpayer.

                         Penalties and Interest

479.48 Failure to pay special (occupational) tax.
479.49 Failure to register change or removal.
479.50 Delinquency.
479.51 Fraudulent return.

                        Application of State Laws

479.52 State regulations.

                    Subpart E_Tax on Making Firearms

479.61 Rate of tax.

                      Application To Make a Firearm

479.62 Application to make.
479.63 Identification of applicant.
479.64 Procedure for approval of application.
479.65 Denial of application.
479.66 Subsequent transfer of firearms.
479.67 Cancellation of stamp.

                  Exceptions to Tax on Making Firearms

479.68 Qualified manufacturer.
479.69 Making a firearm for the United States.
479.70 Certain government entities.

                              Registration

479.71 Proof of registration.

                         Subpart F_Transfer Tax

479.81 Scope of tax.
479.82 Rate of tax.
479.83 Transfer tax in addition to import duty.

              Application and Order for Transfer of Firearm

479.84 Application to transfer.
479.85 Identification of transferee.
479.86 Action on application.
479.87 Cancellation of stamp.

              Exemptions Relating to Transfers of Firearms

479.88 Special (occupational) taxpayers.
479.89 Transfers to the United States.
479.90 Certain government entities.
479.91 Unserviceable firearms.
479.92 Transportation of firearms to effect transfer.

                            Other Provisions

479.93 Transfers of firearms to certain persons.

          Subpart G_Registration and Identification of Firearms

479.101 Registration of firearms.
479.102 How must firearms be identified?
479.103 Registration of firearms manufactured.
479.104 Registration of firearms by certain governmental entities.

                              Machine Guns

479.105 Transfer and possession of machine guns.

                  Subpart H_Importation and Exportation

                               Importation

479.111 Procedure.
479.112 Registration of imported firearms.
479.113 Conditional importation.

                               Exportation

479.114 Application and permit for exportation of firearms.
479.115 Action by Director.
479.116 Procedure by exporter.
479.117 Action by Customs.
479.118 Proof of exportation.
479.119 Transportation of firearms to effect exportation.
479.120 Refunds.
479.121 Insular possessions.

                         Arms Export Control Act

479.122 Requirements.

                      Subpart I_Records and Returns

479.131 Records.

             Subpart J_Stolen or Lost Firearms or Documents

479.141 Stolen or lost firearms.
479.142 Stolen or lost documents.

               Subpart K_Examination of Books and Records

479.151 Failure to make returns: Substitute returns.
479.152 Penalties (records and returns).

                Subpart L_Distribution and Sale of Stamps

479.161 National Firearms Act stamps.
479.162 Stamps authorized.
479.163 Reuse of stamps prohibited.

[[Page 88]]

       Subpart M_Redemption of or Allowance for Stamps or Refunds

479.171 Redemption of or allowance for stamps.
479.172 Refunds.

                   Subpart N_Penalties and Forfeitures

479.181 Penalties.
479.182 Forfeitures.

                     Subpart O_Other Laws Applicable

479.191 Applicability of other provisions of internal revenue laws.
479.192 Commerce in firearms and ammunition.
479.193 Arms Export Control Act.

    Authority: 26 U.S.C. 7805.

    Source: 36 FR 14256, Aug. 3, 1971, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. ATF-487, 68 FR 3752, Jan. 24, 2003.

    Editorial Note: Nomenclature changes appear by T.D. ATF-487, 68 FR 
3752, Jan. 24, 2003.



                     Subpart A_Scope of Regulations



Sec. 479.1  General.

    This part contains the procedural and substantive requirements 
relative to the importation, manufacture, making, exportation, 
identification and registration of, and the dealing in, machine guns, 
destructive devices and certain other firearms under the provisions of 
the National Firearms Act (26 U.S.C. Chapter 53).

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



                          Subpart B_Definitions



Sec. 479.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meanings ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude other 
things not enumerated which are in the same general class or are 
otherwise within the scope thereof.
    Antique firearm. Any firearm not designed or redesigned for using 
rim fire or conventional center fire ignition with fixed ammunition and 
manufactured in or before 1898 (including any matchlock, flintlock, 
percussion cap, or similar type of ignition system or replica thereof, 
whether actually manufactured before or after the year 1898) and also 
any firearm using fixed ammunition manufactured in or before 1898, for 
which ammunition is no longer manufactured in the United States and is 
not readily available in the ordinary channels of commercial trade.
    Any other weapon. Any weapon or device capable of being concealed on 
the person from which a shot can be discharged through the energy of an 
explosive, a pistol or revolver having a barrel with a smooth bore 
designed or redesigned to fire a fixed shotgun shell, weapons with 
combination shotgun and rifle barrels 12 inches or more, less than 18 
inches in length, from which only a single discharge can be made from 
either barrel without manual reloading, and shall include any such 
weapon which may be readily restored to fire. Such term shall not 
include a pistol or a revolver having a rifled bore, or rifled bores, or 
weapons designed, made, or intended to be fired from the shoulder and 
not capable of firing fixed ammunition.
    ATF officer. An officer or employee of the Bureau of Alcohol, 
Tobacco and Firearms (ATF) authorized to perform any function relating 
to the administration or enforcement of this part.
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Dealer. Any person, not a manufacturer or importer, engaged in the 
business of selling, renting, leasing, or loaning firearms and shall 
include pawnbrokers who accept firearms as collateral for loans.
    Destructive device. (a) Any explosive, incendiary, or poison gas (1) 
bomb, (2)

[[Page 89]]

grenade, (3) rocket having a propellent charge of more than 4 ounces, 
(4) missile having an explosive or incendiary charge of more than one-
quarter ounce, (5) mine, or (6) similar device; (b) any type of weapon 
by whatever name known which will, or which may be readily converted to, 
expel a projectile by the action of an explosive or other propellant, 
the barrel or barrels of which have a bore of more than one-half inch in 
diameter, except a shotgun or shotgun shell which the Director finds is 
generally recognized as particularly suitable for sporting purposes; and 
(c) any combination of parts either designed or intended for use in 
converting any device into a destructive device as described in 
paragraphs (a) and (b) of this definition and from which a destructive 
device may be readily assembled. The term shall not include any device 
which is neither designed or redesigned for use as a weapon; any device, 
although originally designed for use as a weapon, which is redesigned 
for use as a signaling, pyrotechnic, line throwing, safety, or similar 
device; surplus ordnance sold, loaned, or given by the Secretary of the 
Army under 10 U.S.C. 4684(2), 4685, or 4686, or any device which the 
Director finds is not likely to be used as a weapon, or is an antique or 
is a rifle which the owner intends to use solely for sporting purposes.
    Director. The Director, Bureau of Alcohol, Tobacco, and Firearms, 
the Department of the Treasury, Washington, DC.
    Director of the Service Center. A director of an Internal Revenue 
Service Center in an internal revenue region.
    District director. A district director of the Internal Revenue 
Service in an internal revenue district.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, form, or other document or, where no form of 
declaration is prescribed, with the declaration:

    ``I declare under the penalties of perjury that this--(insert type 
of document, such as, statement, application, request, certificate), 
including the documents submitted in support thereof, has been examined 
by me and, to the best of my knowledge and belief, is true, correct, and 
complete.''

    Exportation. The severance of goods from the mass of things 
belonging to this country with the intention of uniting them to the mass 
of things belonging to some foreign country.
    Exporter. Any person who exports firearms from the United States.
    Firearm. (a) A shotgun having a barrel or barrels of less than 18 
inches in length; (b) a weapon made from a shotgun if such weapon as 
modified has an overall length of less than 26 inches or a barrel or 
barrels of less than 18 inches in length; (c) a rifle having a barrel or 
barrels of less than 16 inches in length; (d) a weapon made from a rifle 
if such weapon as modified has an overall length of less than 26 inches 
or a barrel or barrels of less than 16 inches in length; (e) any other 
weapon, as defined in this subpart; (f) a machine gun; (g) a muffler or 
a silencer for any firearm whether or not such firearm is included 
within this definition; and (h) a destructive device. The term shall not 
include an antique firearm or any device (other than a machine gun or 
destructive device) which, although designed as a weapon, the Director 
finds by reason of the date of its manufacture, value, design, and other 
characteristics is primarily a collector's item and is not likely to be 
used as a weapon. For purposes of this definition, the length of the 
barrel having an integral chamber(s) on a shotgun or rifle shall be 
determined by measuring the distance between the muzzle and the face of 
the bolt, breech, or breech block when closed and when the shotgun or 
rifle is cocked. The overall length of a weapon made from a shotgun or 
rifle is the distance between the extreme ends of the weapon measured 
along a line parallel to the center line of the bore.
    Fixed ammunition. That self-contained unit consisting of the case, 
primer, propellant charge, and projectile or projectiles.
    Frame or receiver. That part of a firearm which provides housing for 
the hammer, bolt or breechblock and firing mechanism, and which is 
usually threaded at its forward portion to receive the barrel.
    Importation. The bringing of a firearm within the limits of the 
United States

[[Page 90]]

or any territory under its control or jurisdiction, from a place outside 
thereof (whether such place be a foreign country or territory subject to 
the jurisdiction of the United States), with intent to unlade. Except 
that, bringing a firearm from a foreign country or a territory subject 
to the jurisdiction of the United States into a foreign trade zone for 
storage pending shipment to a foreign country or subsequent importation 
into this country, under Title 26 of the United States Code, and this 
part, shall not be deemed importation.
    Importer. Any person who is engaged in the business of importing or 
bringing firearms into the United States.
    Machine gun. Any weapon which shoots, is designed to shoot, or can 
be readily restored to shoot, automatically more than one shot, without 
manual reloading, by a single function of the trigger. The term shall 
also include the frame or receiver of any such weapon, any part designed 
and intended solely and exclusively, or combination of parts designed 
and intended, for use in converting a weapon into a machine gun, and any 
combination of parts from which a machine gun can be assembled if such 
parts are in the possession or under the control of a person.
    Make. This term and the various derivatives thereof shall include 
manufacturing (other than by one qualified to engage in such business 
under this part), putting together, altering, any combination of these, 
or otherwise producing a firearm.
    Manual reloading. The inserting of a cartridge or shell into the 
chamber of a firearm either with the hands or by means of a mechanical 
device controlled and energized by the hands.
    Manufacturer. Any person who is engaged in the business of 
manufacturing firearms.
    Muffler or silencer. Any device for silencing, muffling, or 
diminishing the report of a portable firearm, including any combination 
of parts, designed or redesigned, and intended for the use in assembling 
or fabricating a firearm silencer or firearm muffler, and any part 
intended only for use in such assembly or fabrication.
    Person. A partnership, company, association, trust, estate, or 
corporation, as well as a natural person.
    Pistol. A weapon originally designed, made, and intended to fire a 
projectile (bullet) from one or more barrels when held in one hand, and 
having (a) a chamber(s) as an integral part(s) of, or permanently 
aligned with, the bore(s); and (b) a short stock designed to be gripped 
by one hand and at an angle to and extending below the line of the 
bore(s).
    Regional director (compliance). The principal ATF regional official 
responsible for administering regulations in this part.
    Revolver. A projectile weapon, of the pistol type, having a 
breechloading chambered cylinder so arranged that the cocking of the 
hammer or movement of the trigger rotates it and brings the next 
cartridge in line with the barrel for firing.
    Rifle. A weapon designed or redesigned, made or remade, and intended 
to be fired from the shoulder and designed or redesigned and made or 
remade to use the energy of the explosive in a fixed cartridge to fire 
only a single projectile through a rifled bore for each single pull of 
the trigger, and shall include any such weapon which may be readily 
restored to fire a fixed cartridge.
    Shotgun. A weapon designed or redesigned, made or remade, and 
intended to be fired from the shoulder and designed or redesigned and 
made or remade to use the energy of the explosive in a fixed shotgun 
shell to fire through a smooth bore either a number of projectiles (ball 
shot) or a single projectile for each pull of the trigger, and shall 
include any such weapon which may be readily restored to fire a fixed 
shotgun shell.
    Transfer. This term and the various derivatives thereof shall 
include selling, assigning, pledging, leasing, loaning, giving away, or 
otherwise disposing of.
    United States. The States and the District of Columbia.
    U.S.C. The United States Code.
    Unserviceable firearm. A firearm which is incapable of discharging a 
shot by means of an explosive and incapable of

[[Page 91]]

being readily restored to a firing condition.

(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as 
amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control 
Act (22 U.S.C. 2778, 90 Stat. 744))

[T.D. ATF-48, 43 FR 13538, Mar. 31, 1978; 44 FR 55842, Sept. 28, 1979; 
T.D. ATF-241, 51 FR 39630, Oct. 29, 1986; T.D. ATF-270, 53 FR 10492, 
Mar. 31, 1988; T.D. ATF-396, 63 FR 12647, Mar. 16, 1998]



          Subpart C_Administrative and Miscellaneous Provisions



Sec. 479.21  Forms prescribed.

    (a) The Director is authorized to prescribe all forms required by 
this part. All of the information called for in each form shall be 
furnished as indicated by the headings on the form and the instructions 
on or pertaining to the form. In addition, information called for in 
each form shall be furnished as required by this part. Each form 
requiring that it be executed under penalties of perjury shall be 
executed under penalties of perjury.
    (b) Requests for forms should be mailed to the ATF Distribution 
Center, 7943 Angus Court, Springfield, Virginia 22153.

(5 U.S.C. 552(a); 80 Stat. 383, as amended)

[T.D. ATF-92, 46 FR 46916, Sept. 23, 1981, as amended by T.D. ATF-241, 
51 FR 39630, Oct. 29, 1986; T.D. ATF-270, 53 FR 10508, Mar. 31, 1988; 
T.D. 372, 61 FR 20725, May 8, 1996]



Sec. 479.22  Right of entry and examination.

    Any ATF officer or employee of the Bureau of Alcohol, Tobacco and 
Firearms duly authorized to perform any function relating to the 
administration or enforcement of this part may enter during business 
hours the premises (including places of storage) of any importer or 
manufacturer of or dealer in firearms, to examine any books, papers, or 
records required to be kept pursuant to this part, and any firearms kept 
by such importer, manufacturer or dealer on such premises, and may 
require the production of any books, papers, or records necessary to 
determine any liability for tax under 26 U.S.C. Chapter 53, or the 
observance of 26 U.S.C. Chapter 53, and this part.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



Sec. 479.23  Restrictive use of required information.

    No information or evidence obtained from an application, 
registration, or record required to be submitted or retained by a 
natural person in order to comply with any provision of 26 U.S.C. 
Chapter 53, or this part or section 207 of the Gun Control Act of 1968 
shall be used, directly or indirectly, as evidence against that person 
in a criminal proceeding with respect to a violation of law occurring 
prior to or concurrently with the filing of the application or 
registration, or the compiling of the record containing the information 
or evidence: Provided, however, That the provisions of this section 
shall not preclude the use of any such information or evidence in a 
prosecution or other action under any applicable provision of law with 
respect to the furnishing of false information.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



Sec. 479.24  Destructive device determination.

    The Director shall determine in accordance with 26 U.S.C. 5845(f), 
whether a device is excluded from the definition of a destructive 
device. A person who desires to obtain a determination under that 
provision of law for any device which he believes is not likely to be 
used as a weapon shall submit a written request, in triplicate, for a 
ruling thereon to the Director. Each such request shall be executed 
under the penalties of perjury and contain a complete and accurate 
description of the device, the name and address of the manufacturer or 
importer thereof, the purpose of and use for which it is intended, and 
such photographs, diagrams, or drawings as may be necessary to enable 
the Director to make his determination. The Director may require the 
submission to him, of a sample of such device for examination and 
evaluation. If the submission of

[[Page 92]]

such device is impracticable, the person requesting the ruling shall so 
advise the Director and designate the place where the device will be 
available for examination and evaluation.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



Sec. 479.25  Collector's items.

    The Director shall determine in accordance with 26 U.S.C. 5845(a), 
whether a firearm or device, which although originally designed as a 
weapon, is by reason of the date of its manufacture, value, design, and 
other characteristics primarily a collector's item and is not likely to 
be used as a weapon. A person who desires to obtain a determination 
under that provision of law shall follow the procedures prescribed in 
Sec. 479.24 relating to destructive device determinations, and shall 
include information as to date of manufacture, value, design and other 
characteristics which would sustain a finding that the firearm or device 
is primarily a collector's item and is not likely to be used as a 
weapon.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



Sec. 479.26  Alternate methods or procedures; emergency variations 
from requirements.

    (a) Alternate methods or procedures. Any person subject to the 
provisions of this part, on specific approval by the Director as 
provided in this paragraph, may use an alternate method or procedure in 
lieu of a method or procedure specifically prescribed in this part. The 
Director may approve an alternate method or procedure, subject to stated 
conditions, when it is found that:
    (1) Good cause is shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure and that the alternate method or procedure is 
substantially equivalent to that specifically prescribed method or 
procedure; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law and will not result in an increase in cost to the 
Government or hinder the effective administration of this part. Where 
such person desires to employ an alternate method or procedure, a 
written application shall be submitted to the appropriate regional 
director (compliance), for transmittal to the Director. The application 
shall specifically describe the proposed alternate method or procedure 
and shall set forth the reasons for it. Alternate methods or procedures 
may not be employed until the application is approved by the Director. 
Such person shall, during the period of authorization of an alternate 
method or procedure, comply with the terms of the approved application. 
Authorization of any alternate method or procedure may be withdrawn 
whenever, in the judgment of the Director, the effective administration 
of this part is hindered by the continuation of the authorization.
    (b) Emergency variations from requirements. The Director may approve 
a method of operation other than as specified in this part, where it is 
found that an emergency exists and the proposed variation from the 
specified requirements are necessary and the proposed variations (1) 
will not hinder the effective administration of this part, and (2) will 
not be contrary to any provisions of law. Variations from requirements 
granted under this paragraph are conditioned on compliance with the 
procedures, conditions, and limitations set forth in the approval of the 
application. Failure to comply in good faith with the procedures, 
conditions, and limitations shall automatically terminate the authority 
for the variations, and the person granted the variance shall fully 
comply with the prescribed requirements of regulations from which the 
variations were authorized. Authority for any variation may be withdrawn 
whenever, in the judgment of the Director, the effective administration 
of this part is hindered by the continuation of the variation. Where a 
person desires to employ an emergency variation, a written application 
shall be submitted to the appropriate regional director (compliance) for 
transmittal to the Director. The application shall describe the proposed 
variation

[[Page 93]]

and set forth the reasons for it. Variations may not be employed until 
the application is approved.
    (c) Retention of approved variations. The person granted the 
variance shall retain and make available for examination by ATF officers 
any application approved by the Director under this section.

[T.D. ATF-270, 53 FR 10508 Mar. 31, 1988]



                 Subpart D_Special (Occupational) Taxes



Sec. 479.31  Liability for tax.

    (a) General. Every person who engages in the business of importing, 
manufacturing, or dealing in (including pawnbrokers) firearms in the 
United States shall pay a special (occupational) tax at a rate specified 
by Sec. 479.32. The tax shall be paid on or before the date of 
commencing the taxable business, and thereafter every year on or before 
July 1. Special (occupational) tax shall not be prorated. The tax shall 
be computed for the entire tax year (July 1 through June 30), regardless 
of the portion of the year during which the taxpayer engages in 
business. Persons commencing business at any time after July 1 in any 
year are liable for the special (occupational) tax for the entire tax 
year.
    (b) Each place of business taxable. An importer, manufacturer, or 
dealer in firearms incurs special tax liability at each place of 
business where an occupation subject to special tax is conducted. A 
place of business means the entire office, plant or area of the business 
in any one location under the same proprietorship. Passageways, streets, 
highways, rail crossings, waterways, or partitions dividing the premises 
are not sufficient separation to require additional special tax, if the 
divisions of the premises are otherwise contiguous. See also Sec. Sec. 
479.38-479.39.

(26 U.S.C. 5143, 5801, 5846)

[T.D. ATF-271, 53 FR 17550, May 17, 1988]



Sec. 479.32  Special (occupational) tax rates.

    (a) Prior to January 1, 1988, the special (occupational) tax rates 
were as follows:

------------------------------------------------------------------------
                                                             Per year or
                                                               fraction
                                                               thereof
------------------------------------------------------------------------
Class 1--Importer of firearms..............................         $500
Class 2--Manufacturer of firearms..........................          500
Class 3--Dealer in firearms................................          200
Class 4--Importer only of weapons classified as ``any other           25
 weapon''..................................................
Class 5--Manufacturer only of weapons classified as ``any             25
 other weapon''............................................
Class 6--Dealer only in weapons classified as ``any other             10
 weapon''..................................................
------------------------------------------------------------------------

    (b) Except as provided in Sec. 479.32a, the special (occupational) 
tax rates effective January 1, 1988, are as follows:

------------------------------------------------------------------------
                                                             Per year or
                                                               fraction
                                                               thereof
------------------------------------------------------------------------
Class 1--Importer of firearms (including an importer only         $1,000
 of weapons classified as ``any other weapon'')............
Class 2--Manufacturer of firearms (including a manufacturer        1,000
 only of weapons classified as ``any other weapon'').......
Class 3--Dealer in firearms (including a dealer only of              500
 weapons classified as ``any other weapon'')...............
------------------------------------------------------------------------

    (c) A taxpayer who was engaged in a business on January 1, 1988, for 
which a special (occupational) tax was paid for a taxable period which 
began before January 1, 1988, and included that date, shall pay an 
increased special tax for the period January 1, 1988, through June 30, 
1988. The increased tax shall not exceed one-half the excess (if any) of 
(1) the rate of special tax in effect on January 1, 1988, over (2) the 
rate of such tax in effect on December 31, 1987. The increased special 
tax shall be paid on or before April 1, 1988.

[T.D. ATF-271, 53 FR 17550, May 17, 1988]



Sec. 479.32a  Reduced rate of tax for small importers and manufacturers.

    (a) General. Effective January 1, 1988, 26 U.S.C. 5801(b) provides 
for a reduced rate of special tax with respect to any importer or 
manufacturer whose gross receipts (for the most recent taxable year 
ending before the first day of the taxable period to which the special 
tax imposed by Sec. 479.32 relates) are less than $500,000. The rate of 
tax for such an importer or manufacturer is $500 per year or fraction 
thereof. The ``taxable year'' to be used for determining gross receipts 
is the taxpayer's income tax year. All gross receipts of the taxpayer

[[Page 94]]

shall be included, not just the gross receipts of the business subject 
to special tax. Proprietors of new businesses that have not yet begun a 
taxable year, as well as proprietors of existing businesses that have 
not yet ended a taxable year, who commence a new activity subject to 
special tax, quality for the reduced special (occupational) tax rate, 
unless the business is a member of a ``controlled group''; in that case, 
the rules of paragraph (b) of this section shall apply.
    (b) Controlled group. All persons treated as one taxpayer under 26 
U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of 
determining gross receipts under paragraph (a) of this section. 
``Controlled group'' means a controlled group of corporations, as 
defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-
1 through 1.1563-4, except that the words ``at least 80 percent'' shall 
be replaced by the words ``more than 50 percent'' in each place they 
appear in subsection (a) of 26 U.S.C. 1563, as well as in the 
implementing regulations. Also, the rules for a ``controlled group of 
corporations'' apply in a similar fashion to groups which include 
partnerships and/or sole proprietorships. If one entity maintains more 
than 50% control over a group consisting of corporations and one, or 
more, partnerships and/or sole proprietorships, all of the members of 
the controlled group are one taxpayer for the purpose of this section.
    (c) Short taxable year. Gross receipts for any taxable year of less 
than 12 months shall be annualized by multiplying the gross receipts for 
the short period by 12 and dividing the result by the number of months 
in the short period, as required by 26 U.S.C. 448(c)(3).
    (d) Returns and allowances. Gross receipts for any taxable year 
shall be reduced by returns and allowances made during that year under 
26 U.S.C. 448(c)(3).

(26 U.S.C. 448, 5061, 5801)

[T.D. ATF-271, 53 FR 17550, May 17, 1988]



Sec. 479.33  Special exemption.

    (a) Any person required to pay special (occupational) tax under this 
part shall be relieved from payment of that tax if he establishes to the 
satisfaction of the Director that his business is conducted exclusively 
with, or on behalf of, the United States or any department, independent 
establishment, or agency thereof. The Director may relieve any person 
manufacturing firearms for or on behalf of the United States from 
compliance with any provision of this part in the conduct of the 
business with respect to such firearms.
    (b) The exemption in this section may be obtained by filing with the 
Director an application, in letter form, setting out the manner in which 
the applicant conducts his business, the type of firearm to be 
manufactured, and proof satisfactory to the Director of the existence of 
the contract with the United States, department, independent 
establishment, or agency thereof, under which the applicant intends to 
operate.



Sec. 479.34  Special tax registration and return.

    (a) General. Special tax shall be paid by return. The prescribed 
return is ATF Form 5630.7, Special Tax Registration and Return. Special 
tax returns, with payment of tax, shall be filed with ATF in accordance 
with instructions on the form. Properly completing, signing, and timely 
filing of a return (Form 5630.7) constitutes compliance with 26 U.S.C. 
5802.
    (b) Preparation of ATF Form 5630.7. All of the information called 
for on Form 5630.7 shall be provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (3) The employer identification number (see Sec. 479.35).
    (4) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (5) The class(es) of special tax to which the taxpayer is subject.
    (6) Ownership and control information: That is, the name, position, 
and residence address of every owner of the

[[Page 95]]

business and of every person having power to control its management and 
policies with respect to the activity subject to special tax. ``Owner of 
the business'' shall include every partner, if the taxpayer is a 
partnership, and every person owning 10% or more of its stock, if the 
taxpayer is a corporation. However, the ownership and control 
information required by this paragraph need not be stated if the same 
information has been previously provided to ATF in connection with a 
license application under Part 478 of this chapter, and if the 
information previously provided is still current.
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special tax for the same period at more than one location or for more 
than one class of tax shall--
    (1) File one special tax return, ATF Form 5630.7, with payment of 
tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on ATF Form 5630.7), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid. The original of the list shall be filed with 
ATF in accordance with instructions on the return, and the copy shall be 
retained at the taxpayer's principal place of business (or principal 
office, in the case of a corporate taxpayer) for not less than 3 years.
    (d) Signing of ATF Forms 5630.7--(1) Ordinary returns. The return of 
an individual proprietor shall be signed by the individual. The return 
of a partnership shall be signed by a general partner. The return of a 
corporation shall be signed by any officer. In each case, the person 
signing the return shall designate his or her capacity as ``individual 
owner,'' ``member of firm,'' or, in the case of a corporation, the title 
of the officer.
    (2) Fiduciaries. Receivers, trustees, assignees, executors, 
administrators, and other legal representatives who continue the 
business of a bankrupt, insolvent, deceased person, etc., shall indicate 
the fiduciary capacity in which they act.
    (3) Agent or attorney in fact. If a return is signed by an agent or 
attorney in fact, the signature shall be preceded by the name of the 
principal and followed by the title of the agent or attorney in fact. A 
return signed by a person as agent will not be accepted unless there is 
filed, with the ATF office with which the return is required to be 
filed, a power of attorney authorizing the agent to perform the act.
    (4) Perjury statement. ATF Forms 5630.7 shall contain or be verified 
by a written declaration that the return has been executed under the 
penalties of perjury.
    (e) Identification of taxpayer. If the taxpayer is an individual, 
with the initial return such person shall securely attach to Form 5630.7 
a photograph of the individual 2 x 2 inches in size, clearly showing a 
full front view of the features of the individual with head bare, with 
the distance from the top of the head to the point of the chin 
approximately 1\1/4\ inches, and which shall have been taken within 6 
months prior to the date of completion of the return. The individual 
shall also attach to the return a properly completed FBI Form FD-258 
(Fingerprint Card). The fingerprints must be clear for accurate 
classification and should be taken by someone properly equipped to take 
them: Provided, That the provisions of this paragraph shall not apply to 
individuals who have filed with ATF a properly executed Application for 
License under 18 U.S.C. Chapter 44, Firearms, ATF Form 7 (5310.12) (12-
93 edition), as specified in Sec. 478.44(a).

(26 U.S.C. 5142, 5802, 5846, 6061, 6065, 6151)

[T.D. ATF-271, 53 FR 17551, May 17, 1988, as amended by T.D. ATF-363, 60 
FR 17456, Apr. 6, 1995]



Sec. 479.35  Employer identification number.

    (a) Requirement. The employer identification number (defined in 26 
CFR 301.7701-12) of the taxpayer who has been assigned such a number 
shall be shown on each special tax return, including amended returns, 
filed under this subpart. Failure of the taxpayer to include the 
employer identification number may result in the imposition of the 
penalty specified in Sec. 70.113 of this chapter.

[[Page 96]]

    (b) Application for employer identification number. Each taxpayer 
who files a special tax return, who has not already been assigned an 
employer identification number, shall file IRS Form SS-4 to apply for 
one. The taxpayer shall apply for and be assigned only one employer 
identification number, regardless of the number of places of business 
for which the taxpayer is required to file a special tax return. The 
employer identification number shall be applied for no later than 7 days 
after the filing of the taxpayer's first special tax return. IRS Form 
SS-4 may be obtained from the director of an IRS service center or from 
any IRS district director.
    (c) Preparation and filing of IRS Form SS-4. The taxpayer shall 
prepare and file IRS Form SS-4, together with any supplementary 
statement, in accordance with the instructions on the form or issued in 
respect to it.

(26 U.S.C. 6109)

[T.D. ATF-271, 53 FR 17551, May 17, 1988; as amended by T.D. ATF-301, 55 
FR 47657, Nov. 14, 1990]



Sec. 479.36  The special tax stamp, receipt for special (occupational) 
taxes.

    Upon filing a properly completed and executed return (Form 5630.7) 
accompanied by remittance of the full amount due, the taxpayer will be 
issued a special tax stamp as evidence of payment of the special 
(occupational) tax.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 
FR 17456, Apr. 6, 1995]



Sec. 479.37  Certificates in lieu of stamps lost or destroyed.

    When a special tax stamp has been lost or destroyed, such fact 
should be reported immediately to the regional director (compliance) 
Center who issued the stamp. A certificate in lieu of the lost or 
destroyed stamp will be issued to the taxpayer upon the submission of an 
affidavit showing to the satisfaction of the regional director 
(compliance) that the stamp was lost or destroyed.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987]



Sec. 479.38  Engaging in business at more than one location.

    A person shall pay the special (occupational) tax for each location 
where he engages in any business taxable under 26 U.S.C. 5801. However, 
a person paying a special (occupational) tax covering his principal 
place of business may utilize other locations solely for storage of 
firearms without incurring special (occupational) tax liability at such 
locations. A manufacturer, upon the single payment of the appropriate 
special (occupational) tax, may sell firearms, if such firearms are of 
his own manufacture, at the place of manufacture and at his principal 
office or place of business if no such firearms, except samples, are 
kept at such office or place of business. When a person changes the 
location of a business for which he has paid the special (occupational) 
tax, he will be liable for another such tax unless the change is 
properly registered with the regional director (compliance) for the 
region in which the special tax stamp was issued, as provided in Sec. 
479.46.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-251, 
52 FR 19334, May 22, 1987; T.D. ATF-271, 53 FR 17551, May 17, 1988]



Sec. 479.39  Engaging in more than one business at the same location.

    If more than one business taxable under 26 U.S.C. 5801, is carried 
on at the same location during a taxable year, the special 
(occupational) tax imposed on each such business must be paid. This 
section does not require a qualified manufacturer or importer to qualify 
as a dealer if such manufacturer or importer also engages in business on 
his qualified premises as a dealer. However, a qualified manufacturer 
who engages in business as an importer must also qualify as an importer. 
Further, a qualified dealer is not entitled to engage in business as a 
manufacturer or importer.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-271, 
53 FR 17551, May 17, 1988]

[[Page 97]]



Sec. 479.40  Partnership liability.

    Any number of persons doing business in partnership at any one 
location shall be required to pay but one special (occupational) tax.



Sec. 479.41  Single sale.

    A single sale, unattended by circumstances showing the one making 
the sale to be engaged in business, does not create special 
(occupational) tax liability.

                           Change of Ownership



Sec. 479.42  Changes through death of owner.

    Whenever any person who has paid special (occupational) tax dies, 
the surviving spouse or child, or executors or administrators, or other 
legal representatives, may carry on this business for the remainder of 
the term for which tax has been paid and at the place (or places) for 
which the tax was paid, without any additional payment, subject to the 
following conditions. If the surviving spouse or child, or executor or 
administrator, or other legal representative of the deceased taxpayer 
continues the business, such person shall, within 30 days after the date 
on which the successor begins to carry on the business, file a new 
return, Form 5630.7, with ATF in accordance with the instructions on the 
form. The return thus executed shall show the name of the original 
taxpayer, together with the basis of the succession. (As to liability in 
case of failure to register, see Sec. 479.49.)

[T.D. ATF-70, 45 FR 33979, May 21, 1980, as amended by T.D. ATF-251, 52 
FR 19334, May 22, 1987; T.D. ATF-363, 60 FR 17456, Apr. 6, 1995]



Sec. 479.43  Changes through bankruptcy of owner.

    A receiver or referee in bankruptcy may continue the business under 
the stamp issued to the taxpayer at the place and for the period for 
which the tax was paid. An assignee for the benefit of creditors may 
continue business under his assignor's special tax stamp without 
incurring additional special (occupational) tax liability. In such 
cases, the change shall be registered with ATF in a manner similar to 
that required by Sec. 479.42.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987]



Sec. 479.44  Change in partnership or unincorporated association.

    When one or more members withdraw from a partnership or an 
unincorporated association, the remaining member, or members, may, 
without incurring additional special (occupational) tax liability, carry 
on the same business at the same location for the balance of the taxable 
period for which special (occupational) tax was paid, provided any such 
change shall be registered in the same manner as required by Sec. 
479.42. Where new member(s) are taken into a partnership or an 
unincorporated association, the new firm so constituted may not carry on 
business under the special tax stamp of the old firm. The new firm must 
file a return, pay the special (occupational) tax and register in the 
same manner as a person who first engages in business is required to do 
under Sec. 479.34 even though the name of the new firm may be the same 
as that of the old. Where the members of a partnership or an 
unincorporated association, which has paid special (occupational) tax, 
form a corporation to continue the business, a new special tax stamp 
must be taken out in the name of the corporation.



Sec. 479.45  Changes in corporation.

    Additional special (occupational) tax is not required by reason of a 
mere change of name or increase in the capital stock of a corporation if 
the laws of the State of incorporation provide for such change or 
increase without the formation of a new corporation. A stockholder in a 
corporation who after its dissolution continues the business, incurs new 
special (occupational) tax liability.

                       Change of Business Location



Sec. 479.46  Notice by taxpayer.

    Whenever during the taxable year a taxpayer intends to remove his 
business to a location other than specified in his last special 
(occupational) tax return (see Sec. 479.34), he shall file with

[[Page 98]]

ATF (a) a return, Form 5630.7, bearing the notation ``Removal 
Registry,'' and showing the new address intended to be used, (b) his 
current special tax stamp, and (c) a letter application requesting the 
amendment of his registration. The regional director (compliance), upon 
approval of the application, shall return the special tax stamp, amended 
to show the new business location. Firearms operations shall not be 
commenced at the new business location by the taxpayer prior to the 
required approval of his application to so change his business location.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 
FR 17456, Apr. 6, 1995]

                          Change of Trade Name



Sec. 479.47  Notice by taxpayer.

    Whenever during the taxable year a taxpayer intends to change the 
name of his business, he shall file with ATF (a) a return, Form 5630.7, 
bearing the notation ``Amended,'' and showing the trade name intended to 
be used, (b) his current special tax stamp, and (c) a letter application 
requesting the amendment of his registration. The regional director 
(compliance), upon approval of the application, shall return the special 
tax stamp, amended to show the new trade name. Firearms operations shall 
not be commenced under the new trade name by the taxpayer prior to the 
required approval of his application to so change the trade name.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 
FR 17456, Apr. 6, 1995]

                         Penalties and Interest



Sec. 479.48  Failure to pay special (occupational) tax.

    Any person who engages in a business taxable under 26 U.S.C. 5801, 
without timely payment of the tax imposed with respect to such business 
(see Sec. 479.34) shall be liable for such tax, plus the interest and 
penalties thereon (see 26 U.S.C. 6601 and 6651). In addition, such 
person may be liable for criminal penalties under 26 U.S.C. 5871.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



Sec. 479.49  Failure to register change or removal.

    Any person succeeding to and carrying on a business for which 
special (occupational) tax has been paid without registering such change 
within 30 days thereafter, and any taxpayer removing his business with 
respect to which special (occupational) tax has been paid to a place 
other than that for which tax was paid without obtaining approval 
therefor (see Sec. 479.46), will incur liability to an additional 
payment of the tax, addition to tax and interest, as provided in 
sections 5801, 6651, and 6601, respectively, I.R.C., for failure to make 
return (see Sec. 479.50) or pay tax, as well as criminal penalties for 
carrying on business without payment of special (occupational) tax (see 
section 5871 I.R.C.).



Sec. 479.50  Delinquency.

    Any person liable for special (occupational) tax under section 5801, 
I.R.C., who fails to file a return (Form 5630.7), as prescribed, will be 
liable for a delinquency penalty computed on the amount of tax due 
unless a return (Form 5630.7) is later filed and failure to file the 
return timely is shown to the satisfaction of the regional director 
(compliance), to be due to reasonable cause. The delinquency penalty to 
be added to the tax is 5 percent if the failure is for not more than 1 
month, with an additional 5 percent for each additional month or 
fraction thereof during which failure continues, not to exceed 25 
percent in the aggregate (section 6651, I.R.C.). However, no delinquency 
penalty is assessed where the 50 percent addition to tax is assessed for 
fraud (see Sec. 479.51).

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 
FR 17453, Apr. 6, 1996]



Sec. 479.51  Fraudulent return.

    If any part of any underpayment of tax required to be shown on a 
return is due to fraud, there shall be added to

[[Page 99]]

the tax an amount equal to 50 percent of the underpayment, but no 
delinquency penalty shall be assessed with respect to the same 
underpayment (section 6653, I.R.C.).

                        Application of State Laws



Sec. 479.52  State regulations.

    Special tax stamps are merely receipts for the tax. Payment of tax 
under Federal law confers no privilege to act contrary to State law. One 
to whom a special tax stamp has been issued may still be punishable 
under a State law prohibiting or controlling the manufacture, possession 
or transfer of firearms. On the other hand, compliance with State law 
confers no immunity under Federal law. Persons who engage in the 
business of importing, manufacturing or dealing in firearms, in 
violation of the law of a State, are nevertheless required to pay 
special (occupational) tax as imposed under the internal revenue laws of 
the United States. For provisions relating to restrictive use of 
information furnished to comply with the provisions of this part see 
Sec. 479.23.



                    Subpart E_Tax on Making Firearms



Sec. 479.61  Rate of tax.

    Except as provided in this subpart, there shall be levied, 
collected, and paid upon the making of a firearm a tax at the rate of 
$200 for each firearm made. This tax shall be paid by the person making 
the firearm. Payment of the tax on the making of a firearm shall be 
represented by a $200 adhesive stamp bearing the words ``National 
Firearms Act.'' The stamps are maintained by the Director.

[T.D. ATF-270, 53 FR 10508, Mar. 31, 1988]

                      Application to Make a Firearm



Sec. 479.62  Application to make.

    No person shall make a firearm unless the person has filed with the 
Director a written application on Form 1 (Firearms), Application to Make 
and Register a Firearm, in duplicate, executed under the penalties of 
perjury, to make and register the firearm and has received the approval 
of the Director to make the firearm which approval shall effectuate 
registration of the weapon to the applicant. The application shall 
identify the firearm to be made by serial number, type, model, caliber 
or gauge, length of barrel, other marks of identification, and the name 
and address of original manufacturer (if the applicant is not the 
original manufacturer). The applicant must be identified on the Form 1 
(Firearms) by name and address and, if other than a natural person, the 
name and address of the principal officer or authorized representative 
and the employer identification number and, if an individual, the 
identification must include the date and place of birth and the 
information prescribed in Sec. 479.63. Each applicant shall identify 
the Federal firearms license and special (occupational) tax stamp issued 
to the applicant, if any. The applicant shall also show required 
information evidencing that making or possession of the firearm would 
not be in violation of law. If the making is taxable, a remittance in 
the amount of $200 shall be submitted with the application in accordance 
with the instructions on the form. If the making is taxable and the 
application is approved, the Director will affix a National Firearms Act 
stamp to the original application in the space provided therefor and 
properly cancel the stamp (see Sec. 479.67). The approved application 
will be returned to the applicant. If the making of the firearm is tax 
exempt under this part, an explanation of the basis of the exemption 
shall be attached to the Form 1 (Firearms).

[T.D. ATF-270, 53 FR 10508, Mar. 31, 1988]



Sec. 479.63  Identification of applicant.

    If the applicant is an individual, the applicant shall securely 
attach to each copy of the Form 1 (Firearms), in the space provided on 
the form, a photograph of the applicant 2 x 2 inches in size, clearly 
showing a full front view of the features of the applicant with head 
bare, with the distance from the top of the head to the point of the 
chin approximately 1\1/4\ inches, and which shall have been taken within 
1 year prior to the date of the application. The applicant shall attach 
two properly completed FBI Forms FD-258 (Fingerprint Card) to the 
application. The

[[Page 100]]

fingerprints must be clear for accurate classification and should be 
taken by someone properly equipped to take them. A certificate of the 
local chief of police, sheriff of the county, head of the State police, 
State or local district attorney or prosecutor, or such other person 
whose certificate may in a particular case be acceptable to the 
Director, shall be completed on each copy of the Form 1 (Firearms). The 
certificate shall state that the certifying official is satisfied that 
the fingerprints and photograph accompanying the application are those 
of the applicant and that the certifying official has no information 
indicating that possession of the firearm by the maker would be in 
violation of State or local law or that the maker will use the firearm 
for other than lawful purposes.

[T.D. ATF-270, 53 FR 10509, Mar. 31, 1988]



Sec. 479.64  Procedure for approval of application.

    The application to make a firearm, Form 1 (Firearms), must be 
forwarded directly, in duplicate, by the maker of the firearm to the 
Director in accordance with the instructions on the form. The Director 
will consider the application for approval or disapproval. If the 
application is approved, the Director will return the original thereof 
to the maker of the firearm and retain the duplicate. Upon receipt of 
the approved application, the maker is authorized to make the firearm 
described therein. The maker of the firearm shall not, under any 
circumstances, make the firearm until the application, satisfactorily 
executed, has been forwarded to the Director and has been approved and 
returned by the Director with the National Firearms Act stamp affixed. 
If the application is disapproved, the original Form 1 (Firearms) and 
the remittance submitted by the applicant for the purchase of the stamp 
will be returned to the applicant with the reason for disapproval stated 
on the form.

[T.D. ATF-270, 53 FR 10509, Mar. 31, 1988]



Sec. 479.65  Denial of application.

    An application to make a firearm shall not be approved by the 
Director if the making or possession of the firearm would place the 
person making the firearm in violation of law.



Sec. 479.66  Subsequent transfer of firearms.

    Where a firearm which has been made in compliance with 26 U.S.C. 
5821, and the regulations contained in this part, is to be transferred 
subsequently, the transfer provisions of the firearms laws and 
regulations must be complied with. (See subpart F of this part).

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]



Sec. 479.67  Cancellation of stamp.

    The person affixing to a Form 1 (Firearms) a ``National Firearms 
Act'' stamp shall cancel it by writing or stamping thereon, in ink, his 
initials, and the day, month and year, in such manner as to render it 
unfit for reuse. The cancellation shall not so deface the stamp as to 
prevent its denomination and genuineness from being readily determined.

                  Exceptions to Tax on Making Firearms



Sec. 479.68  Qualified manufacturer.

    A manufacturer qualified under this part to engage in such business 
may make firearms without payment of the making tax. However, such 
manufacturer shall report and register each firearm made in the manner 
prescribed by this part.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-271, 53 FR 17551, May 17, 1988]



Sec. 479.69  Making a firearm for the United States.

    A firearm may be made by, or on behalf of, the United States or any 
department, independent establishment, or agency thereof without payment 
of the making tax. However, if a firearm is to be made on behalf of the 
United States, the maker must file an application, in duplicate, on Form 
1 (Firearms) and obtain the approval of the Director in the manner 
prescribed in Sec. 479.62.

[[Page 101]]



Sec. 479.70  Certain government entities.

    A firearm may be made without payment of the making tax by, or on 
behalf of, any State, or possession of the United States, any political 
subdivision thereof, or any official police organization of such a 
government entity engaged in criminal investigations. Any person making 
a firearm under this exemption shall first file an application, in 
duplicate, on Form 1 (Firearms) and obtain the approval of the Director 
as prescribed in Sec. 479.62.

                              Registration



Sec. 479.71  Proof of registration.

    The approval by the Director of an application, Form 1 (Firearms), 
to make a firearm under this subpart shall effectuate registration of 
the firearm described in the Form 1 (Firearms) to the person making the 
firearm. The original Form 1 (Firearms) showing approval by the Director 
shall be retained by the maker to establish proof of his registration of 
the firearm described therein, and shall be made available to any ATF 
officer on request.



                         Subpart F_Transfer Tax



Sec. 479.81  Scope of tax.

    Except as otherwise provided in this part, each transfer of a 
firearm in the United States is subject to a tax to be represented by an 
adhesive stamp of the proper denomination bearing the words ``National 
Firearms Act'' to be affixed to the Form 4 (Firearms), Application for 
Transfer and Registration of Firearm, as provided in this subpart.



Sec. 479.82  Rate of tax.

    The transfer tax imposed with respect to firearms transferred within 
the United States is at the rate of $200 for each firearm transferred, 
except that the transfer tax on any firearm classified as ``any other 
weapon'' shall be at the rate of $5 for each such firearm transferred. 
The tax imposed on the transfer of the firearm shall be paid by the 
transferor.



Sec. 479.83  Transfer tax in addition to import duty.

    The transfer tax imposed by section 5811, I.R.C., is in addition to 
any import duty.

              Application and Order for Transfer of Firearm



Sec. 479.84  Application to transfer.

    Except as otherwise provided in this subpart, no firearm may be 
transferred in the United States unless an application, Form 4 
(Firearms), Application for Transfer and Registration of Firearm, in 
duplicate, executed under the penalties of perjury to transfer the 
firearm and register it to the transferee has been filed with and 
approved by the Director. The application, Form 4 (Firearms), shall be 
filed by the transferor and shall identify the firearm to be transferred 
by type; serial number; name and address of the manufacturer and 
importer, if known; model; caliber, gauge or size; in the case of a 
short-barreled shotgun or a short-barreled rifle, the length of the 
barrel; in the case of a weapon made from a rifle or shotgun, the 
overall length of the weapon and the length of the barrel; and any other 
identifying marks on the firearm. In the event the firearm does not bear 
a serial number, the applicant shall obtain a serial number from the 
Regional director (compliance) and shall stamp (impress) or otherwise 
conspicuously place such serial number on the firearm in a manner not 
susceptible of being readily obliterated, altered or removed. The 
application, Form 4 (Firearms), shall identify the transferor by name 
and address; shall identify the transferor's Federal firearms license 
and special (occupational) Chapter tax stamp, if any; and if the 
transferor is other than a natural person, shall show the title or 
status of the person executing the application. The application also 
shall identify the transferee by name and address, and, if the 
transferee is a natural person not qualified as a manufacturer, importer 
or dealer under this part, he shall be further identified in the manner 
prescribed in Sec. 479.85. The application also shall identify the 
special (occupational) tax stamp and Federal firearms license of the 
transferee, if any. Any

[[Page 102]]

tax payable on the transfer must be represented by an adhesive stamp of 
proper denomination being affixed to the application, Form 4 (Firearms), 
properly cancelled.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-241, 51 FR 39632, Oct. 29, 1986 T.D. ATF-270, 53 
FR 10509, Mar. 31, 1988]



Sec. 479.85  Identification of transferee.

    If the transferee is an individual, such person shall securely 
attach to each copy of the application, Form 4 (Firearms), in the space 
provided on the form, a photograph of the applicant 2 x 2 inches in 
size, clearly showing a full front view of the features of the applicant 
with head bare, with the distance from the top of the head to the point 
of the chin approximately 1\1/4\ inches, and which shall have been taken 
within 1 year prior to the date of the application. The transferee shall 
attach two properly completed FBI Forms FD-258 (Fingerprint Card) to the 
application. The fingerprints must be clear for accurate classification 
and should be taken by someone properly equipped to take them. A 
certificate of the local chief of police, sheriff of the county, head of 
the State police, State or local district attorney or prosecutor, or 
such other person whose certificate may in a particular case be 
acceptable to the Director, shall be completed on each copy of the Form 
4 (Firearms). The certificate shall state that the certifying official 
is satisfied that the fingerprints and photograph accompanying the 
application are those of the applicant and that the certifying official 
has no information indicating that the receipt or possession of the 
firearm would place the transferee in violation of State or local law or 
that the transferee will use the firearm for other than lawful purposes.

[T.D. ATF-270, 53 FR 10509, Mar. 31, 1988]



Sec. 479.86  Action on application.

    The Director will consider a completed and properly executed 
application, Form 4 (Firearms), to transfer a firearm. If the 
application is approved, the Director will affix the appropriate 
National Firearms Act stamp, cancel it, and return the original 
application showing approval to the transferor who may then transfer the 
firearm to the transferee along with the approved application. The 
approval of an application, Form 4 (Firearms), by the Director will 
effectuate registration of the firearm to the transferee. The transferee 
shall not take possession of a firearm until the application, Form 4 
(Firearms), for the transfer filed by the transferor has been approved 
by the Director and registration of the firearm is effectuated to the 
transferee. The transferee shall retain the approved application as 
proof that the firearm described therein is registered to the 
transferee, and shall make the approved Form 4 (Firearms) available to 
any ATF officer on request. If the application, Form 4 (Firearms), to 
transfer a firearm is disapproved by the Director, the original 
application and the remittance for purchase of the stamp will be 
returned to the transferor with reasons for the disapproval stated on 
the application. An application, Form 4 (Firearms), to transfer a 
firearm shall be denied if the transfer, receipt, or possession of a 
firearm would place the transferee in violation of law. In addition to 
any other records checks that may be conducted to determine whether the 
transfer, receipt, or possession of a firearm would place the transferee 
in violation of law, the Director shall contact the National Instant 
Criminal Background Check System.

[T.D. ATF-270, 53 FR 10509, Mar. 31, 1988, as amended by T.D. ATF-415, 
63 FR 58281, Oct. 29, 1998]



Sec. 479.87  Cancellation of stamp.

    The method of cancellation of the stamp required by this subpart as 
prescribed in Sec. 479.67 shall be used.

              Exemptions Relating to Transfers of Firearms



Sec. 479.88  Special (occupational) taxpayers.

    (a) A firearm registered to a person qualified under this part to 
engage in business as an importer, manufacturer, or dealer may be 
transferred by that person without payment of the transfer tax to any 
other person qualified under this part to manufacture, import, or deal 
in firearms.

[[Page 103]]

    (b) The exemption provided in paragraph (a) of this section shall be 
obtained by the transferor of the firearm filing with the Director an 
application, Form 3 (Firearms), Application for Tax-exempt Transfer of 
Firearm and Registration to Special (Occupational) Taxpayer, in 
duplicate, executed under the penalties of perjury. The application, 
Form 3 (Firearms), shall (1) show the name and address of the transferor 
and of the transferee, (2) identify the Federal firearms license and 
special (occupational) tax stamp of the transferor and of the 
transferee, (3) show the name and address of the manufacturer and the 
importer of the firearm, if known, (4) show the type, model, overall 
length (if applicable), length of barrel, caliber, gauge or size, serial 
number, and other marks of identification of the firearm, and (5) 
contain a statement by the transferor that he is entitled to the 
exemption because the transferee is a person qualified under this part 
to manufacture, import, or deal in firearms. If the Director approves an 
application, Form 3 (Firearms), he shall return the original Form 3 
(Firearms) to the transferor with the approval noted thereon. Approval 
of an application, Form 3 (Firearms), by the Director shall remove 
registration of the firearm reported thereon from the transferor and 
shall effectuate the registration of that firearm to the transferee. 
Upon receipt of the approved Form 3 (Firearms), the transferor shall 
deliver same with the firearm to the transferee. The transferor shall 
not transfer the firearm to the transferee until his application, Form 3 
(Firearms), has been approved by the Director and the original thereof 
has been returned to the transferor. If the Director disapproves the 
application, Form 3 (Firearms), he shall return the original Form 3 
(Firearms) to the transferor with the reasons for the disapproval stated 
thereon.
    (c) The transferor shall be responsible for establishing the exempt 
status of the transferee before making a transfer under the provisions 
of this section. Therefore, before engaging in transfer negotiations 
with the transferee, the transferor should satisfy himself as to the 
claimed exempt status of the transferee and the bona fides of the 
transaction. If not fully satisfied, the transferor should communicate 
with the Director, report all circumstances regarding the proposed 
transfer, and await the Director's advice before making application for 
the transfer. An unapproved transfer or a transfer to an unauthorized 
person may subject the transferor to civil and criminal liabilities. 
(See 26 U.S.C. 5852, 5861, and 5871.)

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-271, 
53 FR 17551, May 17, 1988]



Sec. 479.89  Transfers to the United States.

    A firearm may be transferred to the United States or any department, 
independent establishment or agency thereof without payment of the 
transfer tax. However, the procedures for the transfer of a firearm as 
provided in Sec. 479.90 shall be followed in a tax-exempt transfer of a 
firearm under this section, unless the transferor is relieved of such 
requirement under other provisions of this part.



Sec. 479.90  Certain government entities.

    (a) A firearm may be transferred without payment of the transfer tax 
to or from any State, possession of the United States, any political 
subdivision thereof, or any official police organization of such a 
governmental entity engaged in criminal investigations.
    (b) The exemption provided in paragraph (a) of this section shall be 
obtained by the transferor of the firearm filing with the Director an 
application, Form 5 (Firearms), Application for Tax-exempt Transfer and 
Registration of Firearm, in duplicate, executed under the penalties of 
perjury. The application shall (1) show the name and address of the 
transferor and of the transferee, (2) identify the Federal firearms 
license and special (occupational) tax stamp, if any, of the transferor 
and of the transferee, (3) show the name and address of the manufacturer 
and the importer of the firearm, if known, (4) show the type, model, 
overall length (if applicable), length of barrel, caliber, gauge or 
size, serial number, and other marks of identification of the firearm, 
and (5) contain a statement by the

[[Page 104]]

transferor that the transferor is entitled to the exemption because 
either the transferor or the transferee is a governmental entity coming 
within the purview of paragraph (a) of this section. In the case of a 
transfer of a firearm by a governmental entity to a transferee who is a 
natural person not qualified as a manufacturer, importer, or dealer 
under this part, the transferee shall be further identified in the 
manner prescribed in Sec. 479.85. If the Director approves an 
application, Form 5 (Firearms), the original Form 5 (Firearms) shall be 
returned to the transferor with the approval noted thereon. Approval of 
an application, Form 5 (Firearms), by the Director shall effectuate the 
registration of that firearm to the transferee. Upon receipt of the 
approved Form 5 (Firearms), the transferor shall deliver same with the 
firearm to the transferee. The transferor shall not transfer the firearm 
to the transferee until the application, Form 5 (Firearms), has been 
approved by the Director and the original thereof has been returned to 
the transferor. If the Director disapproves the application, Form 5 
(Firearms), the original Form 5 (Firearms) shall be returned to the 
transferor with the reasons for the disapproval stated thereon. An 
application by a governmental entity to transfer a firearm shall be 
denied if the tranfer, receipt, or possession of a firearm would place 
the transferee in violation of law.
    (c) The transferor shall be responsible for establishing the exempt 
status of the transferee before making a transfer under the provisions 
of this section. Therefore, before engaging in transfer negotiations 
with the transferee, the transferor should satisfy himself of the 
claimed exempt status of the transferee and the bona fides of the 
transaction. If not fully satisfied, the transferor should communicate 
with the Director, report all circumstances regarding the proposed 
transfer, and await the Director's advice before making application for 
transfer. An unapproved transfer or a transfer to an unauthorized person 
may subject the transferor to civil and criminal liabilities. (See 26 
U.S.C. 5852, 5861, and 5871.)

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-241, 
51 FR 39632, Oct. 29, 1986; T.D. ATF-270, 53 FR 10510, Mar. 31, 1988]



Sec. 479.91  Unserviceable firearms.

    An unserviceable firearm may be transferred as a curio or ornament 
without payment of the transfer tax. However, the procedures for the 
transfer of a firearm as provided in Sec. 479.90 shall be followed in a 
tax-exempt transfer of a firearm under this section, except a statement 
shall be entered on the transfer application, Form 5 (Firearms), by the 
transferor that he is entitled to the exemption because the firearm to 
be transferred is unservicable and is being transferred as a curio or 
ornament. An unapproved transfer, the transfer of a firearm under the 
provisions of this section which is in fact not an unserviceable 
firearm, or the transfer of an unserviceable firearm as something other 
than a curio or ornament, may subject the transferor to civil and 
criminal liabilities. (See 26 U.S.C. 5811, 5852, 5861, and 5871.)

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]



Sec. 479.92  Transportation of firearms to effect transfer.

    Notwithstanding any provision of Sec. 478.28 of this chapter, it 
shall not be required that authorization be obtained from the Director 
for the transportation in interstate or foreign commerce of a firearm in 
order to effect the transfer of a firearm authorized under the 
provisions of this subpart.

[T.D. ATF-270, 53 FR 10510, Mar. 31, 1988]

                            Other Provisions



Sec. 479.93  Transfers of firearms to certain persons.

    Where the transfer of a destructive device, machine gun, short-
barreled shotgun, or short-barreled rifle is to be made by a person 
licensed under the provisions of Title I of the Gun Control Act of 1968 
(82 Stat. 1213) to a person not so licensed, the sworn statement

[[Page 105]]

required by Sec. 478.98 of this chapter shall be attached to and 
accompany the transfer application required by this subpart.



          Subpart G_Registration and Identification of Firearms



Sec. 479.101  Registration of firearms.

    (a) The Director shall maintain a central registry of all firearms 
in the United States which are not in the possession of or under the 
control of the United States. This registry shall be known as the 
National Firearms Registration and Transfer Record and shall include:
    (1) Identification of the firearm as required by this part;
    (2) Date of registration; and
    (3) Identification and address of person entitled to possession of 
the firearm as required by this part.
    (b) Each manufacturer, importer, and maker shall register each 
firearm he manufactures, imports, or makes in the manner prescribed by 
this part. Each firearm transferred shall be registered to the 
transferee by the transferor in the manner prescribed by this part. No 
firearm may be registered by a person unlawfully in possession of the 
firearm except during an amnesty period established under section 207 of 
the Gun Control Act of 1968 (82 Stat. 1235).
    (c) A person shown as possessing firearms by the records maintained 
by the Director pursuant to the National Firearms Act (26 U.S.C. Chapter 
53) in force on October 31, 1968, shall be considered to have registered 
the firearms in his possession which are disclosed by that record as 
being in his possession on October 31, 1968.
    (d) The National Firearms Registration and Transfer Record shall 
include firearms registered to the possessors thereof under the 
provisions of section 207 of the Gun Control Act of 1968.
    (e) A person possessing a firearm registered to him shall retain 
proof of registration which shall be made available to any ATF officer 
upon request.
    (f) A firearm not identified as required by this part shall not be 
registered.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]



Sec. 479.102  How must firearms be identified?

    (a) You, as a manufacturer, importer, or maker of a firearm, must 
legibly identify the firearm as follows:
    (1) By engraving, casting, stamping (impressing), or otherwise 
conspicuously placing or causing to be engraved, cast, stamped 
(impressed) or placed on the frame or receiver thereof an individual 
serial number. The serial number must be placed in a manner not 
susceptible of being readily obliterated, altered, or removed, and must 
not duplicate any serial number placed by you on any other firearm. For 
firearms manufactured, imported, or made on and after January 30, 2002, 
the engraving, casting, or stamping (impressing) of the serial number 
must be to a minimum depth of .003 inch and in a print size no smaller 
than 1/16 inch; and
    (2) By engraving, casting, stamping (impressing), or otherwise 
conspicuously placing or causing to be engraved, cast, stamped 
(impressed), or placed on the frame, receiver, or barrel thereof certain 
additional information. This information must be placed in a manner not 
susceptible of being readily obliterated, altered or removed. For 
firearms manufactured, imported, or made on and after January 30, 2002, 
the engraving, casting, or stamping (impressing) of this information 
must be to a minimum depth of .003 inch. The additional information 
includes:
    (i) The model, if such designation has been made;
    (ii) The caliber or gauge;
    (iii) Your name (or recognized abbreviation) and also, when 
applicable, the name of the foreign manufacturer or maker;
    (iv) In the case of a domestically made firearm, the city and State 
(or recognized abbreviation thereof) where you as the manufacturer 
maintain your place of business, or where you, as the maker, made the 
firearm; and
    (v) In the case of an imported firearm, the name of the country in 
which

[[Page 106]]

it was manufactured and the city and State (or recognized abbreviation 
thereof) where you as the importer maintain your place of business. For 
additional requirements relating to imported firearms, see Customs 
regulations at 19 CFR part 134.
    (b) The depth of all markings required by this section will be 
measured from the flat surface of the metal and not the peaks or ridges. 
The height of serial numbers required by paragraph (a)(1) of this 
section will be measured as the distance between the latitudinal ends of 
the character impression bottoms (bases).
    (c) The Director may authorize other means of identification upon 
receipt of a letter application from you, submitted in duplicate, 
showing that such other identification is reasonable and will not hinder 
the effective administration of this part.
    (d) In the case of a destructive device, the Director may authorize 
other means of identifying that weapon upon receipt of a letter 
application from you, submitted in duplicate, showing that engraving, 
casting, or stamping (impressing) such a weapon would be dangerous or 
impracticable.
    (e) A firearm frame or receiver that is not a component part of a 
complete weapon at the time it is sold, shipped, or otherwise disposed 
of by you must be identified as required by this section.
    (f)(1) Any part defined as a machine gun, muffler, or silencer for 
the purposes of this part that is not a component part of a complete 
firearm at the time it is sold, shipped, or otherwise disposed of by you 
must be identified as required by this section.
    (2) The Director may authorize other means of identification of 
parts defined as machine guns other than frames or receivers and parts 
defined as mufflers or silencers upon receipt of a letter application 
from you, submitted in duplicate, showing that such other identification 
is reasonable and will not hinder the effective administration of this 
part.

(Approved by the Office of Management and Budget under control number 
1512-0550)

[T.D. ATF-461, 66 FR 40601, Aug. 3, 2001]



Sec. 479.103  Registration of firearms manufactured.

    Each manufacturer qualified under this part shall file with the 
Director an accurate notice on Form 2 (Firearms), Notice of Firearms 
Manufactured or Imported, executed under the penalties of perjury, to 
show his manufacture of firearms. The notice shall set forth the name 
and address of the manufacturer, identify his special (occupational) tax 
stamp and Federal firearms license, and show the date of manufacture, 
the type, model, length of barrel, overall length, caliber, gauge or 
size, serial numbers, and other marks of identification of the firearms 
he manufactures, and the place where the manufactured firearms will be 
kept. All firearms manufactured by him during a single day shall be 
included on one notice, Form 2 (Firearms), filed by the manufacturer no 
later than the close of the next business day. The manufacturer shall 
prepare the notice, Form 2 (Firearms), in duplicate, file the original 
notice as prescribed herein and keep the copy with the records required 
by subpart I of this part at the premises covered by his special 
(occupational) tax stamp. Receipt of the notice, Form 2 (Firearms), by 
the Director shall effectuate the registration of the firearms listed on 
that notice. The requirements of this part relating to the transfer of a 
firearm are applicable to transfers by qualified manufacturers.



Sec. 479.104  Registration of firearms by certain governmental entities.

    Any State, any political subdivision thereof, or any official police 
organization of such a government entity engaged in criminal 
investigations, which acquires for official use a firearm not registered 
to it, such as by abandonment or by forfeiture, will register such 
firearm with the Director by filing Form 10 (Firearms), Registration of 
Firearms Acquired by Certain Governmental Entities, and such 
registration shall become a part of the National Firearms Registration 
and Transfer Record. The application shall identify the applicant, 
describe each firearm covered by the application, show the location 
where each firearm usually

[[Page 107]]

will be kept, and, if the firearm is unserviceable, the application 
shall show how the firearm was made unserviceable. This section shall 
not apply to a firearm merely being held for use as evidence in a 
criminal proceeding. The Form 10 (Firearms) shall be executed in 
duplicate in accordance with the instructions thereon. Upon registering 
the firearm, the Director shall return the original Form 10 (Firearms) 
to the registrant with notification thereon that registration of the 
firearm has been made. The registration of any firearm under this 
section is for official use only and a subsequent transfer will be 
approved only to other governmental entities for official use.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-241, 51 FR 39633, Oct. 29, 1986; T.D. ATF-270, 
53 FR 10510, Mar. 31, 1988]

                              Machine Guns



Sec. 479.105  Transfer and possession of machine guns.

    (a) General. As provided by 26 U.S.C. 5812 and 26 U.S.C. 5822, an 
application to make or transfer a firearm shall be denied if the making, 
transfer, receipt, or possession of the firearm would place the maker or 
transferee in violation of law. Section 922(o), Title 18, U.S.C., makes 
it unlawful for any person to transfer or possess a machine gun, except 
a transfer to or by, or possession by or under the authority of, the 
United States or any department or agency thereof or a State, or a 
department, agency, or political subdivision thereof; or any lawful 
transfer or lawful possession of a machine gun that was lawfully 
possessed before May 19, 1986. Therefore, notwithstanding any other 
provision of this part, no application to make, transfer, or import a 
machine gun will be approved except as provided by this section.
    (b) Machine guns lawfully possessed prior to May 19, 1986. A machine 
gun possessed in compliance with the provisions of this part prior to 
May 19, 1986, may continue to be lawfully possessed by the person to 
whom the machine gun is registered and may, upon compliance with the 
provisions of this part, be lawfully transferred to and possessed by the 
transferee.
    (c) Importation and manufacture. Subject to compliance with the 
provisions of this part, importers and manufacturers qualified under 
this part may import and manufacture machine guns on or after May 19, 
1986, for sale or distribution to any department or agency of the United 
States or any State or political subdivision thereof, or for use by 
dealers qualified under this part as sales samples as provided in 
paragraph (d) of this section. The registration of such machine guns 
under this part and their subsequent transfer shall be conditioned upon 
and restricted to the sale or distribution of such weapons for the 
official use of Federal, State or local governmental entities. Subject 
to compliance with the provisions of this part, manufacturers qualified 
under this part may manufacture machine guns on or after May 19, 1986, 
for exportation in compliance with the Arms Export Control Act (22 
U.S.C. 2778) and regulations prescribed thereunder by the Department of 
State.
    (d) Dealer sales samples. Subject to compliance with the provisions 
of this part, applications to transfer and register a machine gun 
manufactured or imported on or after May 19, 1986, to dealers qualified 
under this part will be approved if it is established by specific 
information the expected governmental customers who would require a 
demonstration of the weapon, information as to the availability of the 
machine gun to fill subsequent orders, and letters from governmental 
entities expressing a need for a particular model or interest in seeing 
a demonstration of a particular weapon. Applications to transfer more 
than one machine gun of a particular model to a dealer must also 
establish the dealer's need for the quantity of samples sought to be 
transferred.
    (e) The making of machine guns on or after May 19, 1986. Subject to 
compliance with the provisions of this part, applications to make and 
register machine guns on or after May 19, 1986, for the benefit of a 
Federal, State or local governmental entity (e.g., an invention for 
possible future use of a governmental entity or the making of a weapon 
in connection with research and development on behalf of such an entity) 
will be approved if it is established by

[[Page 108]]

specific information that the machine gun is particularly suitable for 
use by Federal, State or local governmental entities and that the making 
of the weapon is at the request and on behalf of such an entity.
    (f) Discontinuance of business. Since section 922(o), Title 18, 
U.S.C., makes it unlawful to transfer or possess a machine gun except as 
provided in the law, any qualified manufacturer, importer, or dealer 
intending to discontinue business shall, prior to going out of business, 
transfer in compliance with the provisions of this part any machine gun 
manufactured or imported after May 19, 1986, to a Federal, State or 
local governmental entity, qualified manufacturer, qualified importer, 
or, subject to the provisions of paragraph (d) of this section, dealer 
qualified to possess such, machine gun.

[T.D. ATF-270, 53 FR 10510, Mar. 31, 1988]



                  Subpart H_Importation and Exportation

                               Importation



Sec. 479.111  Procedure.

    (a) No firearm shall be imported or brought into the United States 
or any territory under its control or jurisdiction unless the person 
importing or bringing in the firearm establishes to the satisfaction of 
the Director that the firearm to be imported or brought in is being 
imported or brought in for:
    (1) The use of the United States or any department, independent 
establishment, or agency thereof or any State or possession or any 
political subdivision thereof; or
    (2) Scientific or research purposes; or
    (3) Testing or use as a model by a registered manufacturer or solely 
for use as a sample by a registered importer or registered dealer.

The burden of proof is affirmatively on any person importing or bringing 
the firearm into the United States or any territory under its control or 
jurisdiction to show that the firearm is being imported or brought in 
under one of the above paragraphs. Any person desiring to import or 
bring a firearm into the United States under this paragraph shall file 
with the Director an application on Form 6 (Firearms), Application and 
Permit for Importation of Firearms, Ammunition and Implements of War, in 
triplicate, executed under the penalties of perjury. The application 
shall show the information required by subpart G of Part 478 of this 
chapter. A detailed explanation of why the importation of the firearm 
falls within the standards set out in this paragraph shall be attached 
to the application. The person seeking to import or bring in the firearm 
will be notified of the approval or disapproval of his application. If 
the application is approved, the original Form 6 (Firearms) will be 
returned to the applicant showing such approval and he will present the 
approved application, Form 6 (Firearms), to the Customs officer at the 
port of importation. The approval of an application to import a firearm 
shall be automatically terminated at the expiration of one year from the 
date of approval unless, upon request, it is further extended by the 
Director. If the firearm described in the approved application is not 
imported prior to the expiration of the approval, the Director shall be 
so notified. Customs officers will not permit release of a firearm from 
Customs custody, except for exportation, unless covered by an 
application which has been approved by the Director and which is 
currently effective. The importation or bringing in of a firearm not 
covered by an approved application may subject the person responsible to 
civil and criminal liabilities. (26 U.S.C. 5861, 5871, and 5872.)
    (b) Part 478 of this chapter also contains requirements and 
procedures for the importation of firearms into the United States. A 
firearm may not be imported into the United States under this part 
unless those requirements and procedures are also complied with by the 
person importing the firearm.
    (c) The provisions of this subpart shall not be construed as 
prohibiting the return to the United States or any territory under its 
control or jurisdiction of a firearm by a person who can establish to 
the satisfaction of Customs that (1) the firearm was taken out of the 
United States or any territory under its control or jurisdiction

[[Page 109]]

by such person, (2) the firearm is registered to that person, and (3) if 
appropriate, the authorization required by Part 478 of this chapter for 
the transportation of such a firearm in interstate or foreign commerce 
has been obtained by such person.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979; ATF-325, 57 FR 
29787, July 7, 1992]



Sec. 479.112  Registration of imported firearms.

    (a) Each importer shall file with the Director an accurate notice on 
Form 2 (Firearms), Notice of Firearms Manufactured or Imported, executed 
under the penalties of perjury, showing the importation of a firearm. 
The notice shall set forth the name and address of the importer, 
identify the importer's special (occupational) tax stamp and Federal 
firearms license, and show the import permit number, the date of release 
from Customs custody, the type, model, length of barrel, overall length, 
caliber, gauge or size, serial number, and other marks of identification 
of the firearm imported, and the place where the imported firearm will 
be kept. The Form 2 (Firearms) covering an imported firearm shall be 
filed by the importer no later than fifteen (15) days from the date the 
firearm was released from Customs custody. The importer shall prepare 
the notice, Form 2 (Firearms), in duplicate, file the original return as 
prescribed herein, and keep the copy with the records required by 
subpart I of this part at the premises covered by the special 
(occupational) tax stamp. The timely receipt by the Director of the 
notice, Form 2 (Firearms), and the timely receipt by the Director of the 
copy of Form 6A (Firearms), Release and Receipt of Imported Firearms, 
Ammunition and Implements of War, required by Sec. 478.112 of this 
chapter, covering the weapon reported on the Form 2 (Firearms) by the 
qualified importer, shall effectuate the registration of the firearm to 
the importer.
    (b) The requirements of this part relating to the transfer of a 
firearm are applicable to the transfer of imported firearms by a 
qualified importer or any other person.
    (c) Subject to compliance with the provisions of this part, an 
application, Form 6 (Firearms), to import a firearm by an importer or 
dealer qualified under this part, for use as a sample in connection with 
sales of such firearms to Federal, State or local governmental entities, 
will be approved if it is established by specific information attached 
to the application that the firearm is suitable or potentially suitable 
for use by such entities. Such information must show why a sales sample 
of a particular firearm is suitable for such use and the expected 
governmental customers who would require a demonstration of the firearm. 
Information as to the availability of the firearm to fill subsequent 
orders and letters from governmental entities expressing a need for a 
particular model or interest in seeing a demonstration of a particular 
firearm would establish suitability for governmental use. Applications 
to import more than one firearm of a particular model for use as a 
sample by an importer or dealer must also establish the importer's or 
dealer's need for the quantity of samples sought to be imported.
    (d) Subject to compliance with the provisions of this part, an 
application, Form 6 (Firearms), to import a firearm by an importer or 
dealer qualified under this part, for use as a sample in connection with 
sales of such firearms to Federal, State or local governmental entities, 
will be approved if it is established by specific information attached 
to the application that the firearm is particularly suitable for use by 
such entities. Such information must show why a sales sample of a 
particular firearm is suitable for such use and the expected 
governmental customers who would require a demonstration of the firearm. 
Information as to the availability of the firearm to fill subsequent 
orders and letters from governmental entities expressing a need for a 
particular model or interest in seeing a demonstration of a particular 
firearm would establish suitability for governmental use. Applications 
to import more than one firearm of a particular model for use as a 
sample by an importer or dealer must also establish the importer's or 
dealer's need for the

[[Page 110]]

quantity of samples sought to be imported.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-241, 51 FR 39633, Oct. 29, 1986; T.D. ATF-270, 
53 FR 10511, Mar. 31, 1988]



Sec. 479.113  Conditional importation.

    The Director shall permit the conditional importation or bringing 
into the United States of any firearm for the purpose of examining and 
testing the firearm in connection with making a determination as to 
whether the importation or bringing in of such firearm will be 
authorized under this subpart. An application under this section shall 
be filed on Form 6 (Firearms), in triplicate, with the Director. The 
Director may impose conditions upon any importation under this section 
including a requirement that the firearm be shipped directly from 
Customs custody to the Director and that the person importing or 
bringing in the firearm must agree to either export the weapon or 
destroy it if a final determination is made that it may not be imported 
or brought in under this subpart. A firearm so imported or brought into 
the United States may be released from Customs custody in the manner 
prescribed by the conditional authorization of the Director.

[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]

                               Exportation



Sec. 479.114  Application and permit for exportation of firearms.

    Any person desiring to export a firearm without payment of the 
transfer tax must file with the Director an application on Form 9 
(Firearms), Application and Permit for Exportation of Firearms, in 
quadruplicate, for a permit providing for deferment of tax liability. 
Part 1 of the application shall show the name and address of the foreign 
consignee, number of firearms covered by the application, the intended 
port of exportation, a complete description of each firearm to be 
exported, the name, address, State Department license number (or date of 
application if not issued), and identification of the special 
(occupational) tax stamp of the transferor. Part 1 of the application 
shall be executed under the penalties of perjury by the transferor and 
shall be supported by a certified copy of a written order or contract of 
sale or other evidence showing that the firearm is to be shipped to a 
foreign designation. Where it is desired to make a transfer free of tax 
to another person who in turn will export the firearm, the transferor 
shall likewise file an application supported by evidence that the 
transfer will start the firearm in course of exportation, except, 
however, that where such transferor and exporter are registered special-
taxpayers the transferor will not be required to file an application on 
Form 9 (Firearms).



Sec. 479.115  Action by Director.

    If the application is acceptable, the Director will execute the 
permit, Part 2 of Form 9 (Firearms), to export the firearm described on 
the form and return three copies thereof to the applicant. Issuance of 
the permit by the Director will suspend assertion of tax liability for a 
period of six (6) months from the date of issuance. If the application 
is disapproved, the Director will indicate thereon the reason for such 
action and return the forms to the applicant.



Sec. 479.116  Procedure by exporter.

    Shipment may not be made until the permit, Form 9 (Firearms), is 
received from the Director. If exportation is to be made by means other 
than by parcel post, two copies of the form must be addressed to the 
District Director of Customs at the port of exportation, and must 
precede or accompany the shipment in order to permit appropriate 
inspection prior to lading. If exportation is to be made by parcel post, 
one copy of the form must be presented to the postmaster at the office 
receiving the parcel who will execute Part 4 of such form and return the 
form to the exporter for transmittal to the Director. In the event 
exportation is not effected, all copies of the form must be immediately 
returned to the Director for cancellation.



Sec. 479.117  Action by Customs.

    Upon receipt of a permit, Form 9 (Firearms), in duplicate, 
authorizing

[[Page 111]]

the exportation of firearms, the District Director of Customs may order 
such inspection as deemed necessary prior to lading of the merchandise. 
If satisfied that the shipment is proper and the information contained 
in the permit to export is in agreement with information shown in the 
shipper's export declaration, the District Director of Customs will, 
after the merchandise has been duly exported, execute the certificate of 
exportation (Part 3 of Form 9 (Firearms)). One copy of the form will be 
retained with the shipper's export declaration and the remaining copy 
thereof will be transmitted to the Director.



Sec. 479.118  Proof of exportation.

    Within a six-month's period from date of issuance of the permit to 
export firearms, the exporter shall furnish or cause to be furnished to 
the Director (a) the certificate of exportation (Part 3 of Form 9 
(Firearms)) executed by the District Director of Customs as provided in 
Sec. 479.117, or (b) the certificate of mailing by parcel post (Part 4 
of Form 9 (Firearms)) executed by the postmaster of the post office 
receiving the parcel containing the firearm, or (c) a certificate of 
landing executed by a Customs officer of the foreign country to which 
the firearm is exported, or (d) a sworn statement of the foreign 
consignee covering the receipt of the firearm, or (e) the return 
receipt, or a reproduced copy thereof, signed by the addressee or his 
agent, where the shipment of a firearm was made by insured or registered 
parcel post. Issuance of a permit to export a firearm and furnishing of 
evidence establishing such exportation under this section will relieve 
the actual exporter and the person selling to the exporter for 
exportation from transfer tax liability. Where satisfactory evidence of 
exportation of a firearm is not furnished within the stated period, the 
transfer tax will be assessed.



Sec. 479.119  Transportation of firearms to effect exportation.

    Notwithstanding any provision of Sec. 478.28 of this chapter, it 
shall not be required that authorization be obtained from the Director 
for the transportation in interstate or foreign commerce of a firearm in 
order to effect the exportation of a firearm authorized under the 
provisions of this subpart.

[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]



Sec. 479.120  Refunds.

    Where, after payment of tax by the manufacturer, a firearm is 
exported, and satisfactory proof of exportation (see Sec. 479.118) is 
furnished, a claim for refund may be submitted on Form 843 (see Sec. 
479.172). If the manufacturer waives all claim for the amount to be 
refunded, the refund shall be made to the exporter. A claim for refund 
by an exporter of tax paid by a manufacturer should be accompanied by 
waiver of the manufacturer and proof of tax payment by the latter.



Sec. 479.121  Insular possessions.

    Transfers of firearms to persons in the insular possessions of the 
United States are exempt from transfer tax, provided title in cases 
involving change of title (and custody or control, in cases not 
involving change of title), does not pass to the transferee or his agent 
in the United States. However, such exempt transactions must be covered 
by approved permits and supporting documents corresponding to those 
required in the case of firearms exported to foreign countries (see 
Sec. Sec. 479.114 and 479.115), except that the Director may vary the 
requirements herein set forth in accordance with the requirements of the 
governing authority of the insular possession. Shipments to the insular 
possessions will not be authorized without compliance with the 
requirements of the governing authorities thereof. In the case of a 
nontaxable transfer to a person in such insular possession, the 
exemption extends only to such transfer and not to prior transfers.

                         Arms Export Control Act



Sec. 479.122  Requirements.

    (a) Persons engaged in the business of importing firearms are 
required by the Arms Export Control Act (22 U.S.C. 2778) to register 
with the Director. (See Part 447 of this chapter.)
    (b) Persons engaged in the business of exporting firearms caliber 
.22 or larger

[[Page 112]]

are subject to the requirements of a license issued by the Secretary of 
State. Application for such license should be made to the Office of 
Munitions Control, Department of State, Washington, DC 20502, prior to 
exporting firearms.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-241, 51 FR 39634, Oct. 29, 1986; T.D. ATF-270, 
53 FR 10511, Mar. 31, 1988]



                      Subpart I_Records and Returns



Sec. 479.131  Records.

    For the purposes of this part, each manufacturer, importer, and 
dealer in firearms shall keep and maintain such records regarding the 
manufacture, importation, acquisition (whether by making, transfer, or 
otherwise), receipt, and disposition of firearms as are prescribed, and 
in the manner and place required, by part 478 of this chapter. In 
addition, each manufacturer, importer, and dealer shall maintain, in 
chronological order, at his place of business a separate record 
consisting of the documents required by this part showing the 
registration of any firearm to him. If firearms owned or possessed by a 
manufacturer, importer, or dealer are stored or kept on premises other 
than the place of business shown on his special (occupational) tax 
stamp, the record establishing registration shall show where such 
firearms are stored or kept. The records required by this part shall be 
readily accessible for inspection at all reasonable times by ATF 
officers.

(Approved by the Office of Management and Budget under control number 
1512-0387)

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984]



             Subpart J_Stolen or Lost Firearms or Documents



Sec. 479.141  Stolen or lost firearms.

    Whenever any registered firearm is stolen or lost, the person losing 
possession thereof will, immediately upon discovery of such theft or 
loss, make a report to the Director showing the following:
    (a) Name and address of the person in whose name the firearm is 
registered, (b) kind of firearm, (c) serial number, (d) model, (e) 
caliber, (f) manufacturer of the firearm, (g) date and place of theft or 
loss, and (h) complete statement of facts and circumstances surrounding 
such theft or loss.



Sec. 479.142  Stolen or lost documents.

    When any Forms 1, 2, 3, 4, 5, 6A, or 10 (Firearms) evidencing 
possession of a firearm is stolen, lost, or destroyed, the person losing 
possession will immediately upon discovery of the theft, loss, or 
destruction report the matter to the Director. The report will show in 
detail the circumstances of the theft, loss, or destruction and will 
include all known facts which may serve to identify the document. Upon 
receipt of the report, the Director will make such investigation as 
appears appropriate and may issue a duplicate document upon such 
conditions as the circumstances warrant.



               Subpart K_Examination of Books and Records



Sec. 479.151  Failure to make returns: Substitute returns.

    If any person required by this part to make returns shall fail or 
refuse to make any such return within the time prescribed by this part 
or designated by the Director, then the return shall be made by an ATF 
officer upon inspection of the books, but the making of such return by 
an ATF officer shall not relieve the person from any default or penalty 
incurred by reason of failure to make such return.

(53 Stat. 437; 26 U.S.C. 6020)



Sec. 479.152  Penalties (records and returns).

    Any person failing to keep records or make returns, or making, or 
causing the making of, a false entry on any application, return or 
record, knowing such entry to be false, is liable to fine and 
imprisonment as provided in section 5871, I.R.C.

[[Page 113]]



                Subpart L_Distribution and Sale of Stamps



Sec. 479.161  National Firearms Act stamps.

    ``National Firearms Act'' stamps evidencing payment of the transfer 
tax or tax on the making of a firearm are maintained by the Director. 
The remittance for purchase of the appropriate tax stamp shall be 
submitted with the application. Upon approval of the application, the 
Director will cause the appropriate tax to be paid by affixing the 
appropriate stamp to the application.

[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]



Sec. 479.162  Stamps authorized.

    Adhesive stamps of the $5 and $200 denomination, bearing the words 
``National Firearms Act,'' have been prepared and only such stamps shall 
be used for the payment of the transfer tax and for the tax on the 
making of a firearm.

[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]



Sec. 479.163  Reuse of stamps prohibited.

    A stamp once affixed to one document cannot lawfully be removed and 
affixed to another. Any person willfully reusing such a stamp shall be 
subject to the penalty prescribed by 26 U.S.C. 7208.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]



       Subpart M_Redemption of or Allowance for Stamps or Refunds



Sec. 479.171  Redemption of or allowance for stamps.

    Where a National Firearms Act stamp is destroyed, mutilated or 
rendered useless after purchase, and before liability has been incurred, 
such stamp may be redeemed by giving another stamp in lieu thereof. 
Claim for redemption of the stamp should be filed on ATF Form 2635 
(5620.8) with the Director. Such claim shall be accompanied by the stamp 
or by a satisfactory explanation of the reasons why the stamp cannot be 
returned, and shall be filed within 3 years after the purchase of the 
stamp.

(68A Stat. 830; 26 U.S.C. 6805)

[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]



Sec. 479.172  Refunds.

    As indicated in this part, the transfer tax or tax on the making of 
a firearm is ordinarily paid by the purchase and affixing of stamps, 
while special tax stamps are issued in payment of special (occupational) 
taxes. However, in exceptional cases, transfer tax, tax on the making of 
firearms, and/or special (occupational) tax may be paid pursuant to 
assessment. Claims for refunds of such taxes, paid pursuant to 
assessment, shall be filed on ATF Form 2635 (5620.8) within 3 years next 
after payment of the taxes. Such claims shall be filed with the regional 
director (compliance) serving the region in which the tax was paid. (For 
provisions relating to hand-carried documents and manner of filing, see 
26 CFR 301.6091-1(b) and 301.6402-2(a).) When an applicant to make or 
transfer a firearm wishes a refund of the tax paid on an approved 
application where the firearm was not made pursuant to an approved Form 
1 (Firearms) or transfer of the firearm did not take place pursuant to 
an approved Form 4 (Firearms), the applicant shall file a claim for 
refund of the tax on ATF Form 2635 (5620.8) with the Director. The claim 
shall be accompanied by the approved application bearing the stamp and 
an explanation why the tax liability was not incurred. Such claim shall 
be filed within 3 years next after payment of the tax.

(68A Stat. 808, 830; 26 U.S.C. 6511, 6805)

[T.D. ATF-270, 53 FR 10512, Mar. 31, 1988]



                   Subpart N_Penalties and Forfeitures



Sec. 479.181  Penalties.

    Any person who violates or fails to comply with the requirements of 
26 U.S.C. Chapter 53 shall, upon conviction, be subject to the penalties 
imposed under 26 U.S.C. 5871.

[T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]

[[Page 114]]



Sec. 479.182  Forfeitures.

    Any firearm involved in any violation of the provisions of 26 U.S.C. 
Chapter 53, shall be subject to seizure, and forfeiture under the 
internal revenue laws: Provided, however, That the disposition of 
forfeited firearms shall be in conformance with the requirements of 26 
U.S.C. 5872. In addition, any vessel, vehicle or aircraft used to 
transport, carry, convey or conceal or possess any firearm with respect 
to which there has been committed any violation of any provision of 26 
U.S.C. Chapter 53, or the regulations in this part issued pursuant 
thereto, shall be subject to seizure and forfeiture under the Customs 
laws, as provided by the act of August 9, 1939 (49 U.S.C. App., Chapter 
11).

[T.D. ATF-270, 53 FR 10512, Mar. 31, 1988]



                     Subpart O_Other Laws Applicable



Sec. 479.191  Applicability of other provisions of internal revenue laws.

    All of the provisions of the internal revenue laws not inconsistent 
with the provisions of 26 U.S.C. Chapter 53 shall be applicable with 
respect to the taxes imposed by 26 U.S.C. 5801, 5811, and 5821 (see 26 
U.S.C. 5846).

[T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]



Sec. 479.192  Commerce in firearms and ammunition.

    For provisions relating to commerce in firearms and ammunition, 
including the movement of destructive devices, machine guns, short-
barreled shotguns, or short-barreled rifles, see 18 U.S.C. Chapter 44, 
and Part 478 of this chapter issued pursuant thereto.

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]



Sec. 479.193  Arms Export Control Act.

    For provisions relating to the registration and licensing of persons 
engaged in the business of manufacturing, importing or exporting arms, 
ammunition, or implements of war, see the Arms Export Control Act (22 
U.S.C. 2778), and the regulations issued pursuant thereto. (See also 
Part 447 of this chapter.)

[T.D. ATF-270, 53 FR 10512, Mar. 31, 1988]

[[Page 115]]



                         SUBCHAPTER C_EXPLOSIVES





PART 555_COMMERCE IN EXPLOSIVES--Table of Contents




                         Subpart A_Introduction

Sec.
555.1 Scope of regulations.
555.2 Relation to other provisions of law.

                          Subpart B_Definitions

555.11 Meaning of terms.

          Subpart C_Administrative and Miscellaneous Provisions

555.21 Forms prescribed.
555.22 Alternate methods or procedures; emergency variations from 
          requirements.
555.23 List of explosive materials.
555.24 Right of entry and examination.
555.25 Disclosure of information.
555.26 Prohibited shipment, transportation, receipt, possession, or 
          distribution of explosive materials.
555.27 Out-of-State disposition of explosive materials.
555.28 Stolen explosive materials.
555.29 Unlawful storage.
555.30 Reporting theft or loss of explosive materials.
555.31 Inspection of site of accidents or fires; right of entry.
555.32 Special explosive devices.
555.33 Background checks and clearances (effective May 24, 2003).
555.34 Replacement of stolen or lost ATF Form 5400.30 (Intrastate 
          Purchase of Explosives Coupon (IPEC)).

                     Subpart D_Licenses and Permits

555.41 General.
555.42 License fees.
555.43 Permit fees.
555.44 License or permit fee not refundable.
555.45 Original license or permit.
555.46 Renewal of license or permit.
555.47 Insufficient fee.
555.48 Abandoned application.
555.49 Issuance of license or permit.
555.50 Correction of error on license or permit.
555.51 Duration of license or permit.
555.52 Limitations on license or permit.
555.53 License and permit not transferable.
555.54 Change of address.
555.55 Change in class of explosive materials.
555.56 Change in trade name.
555.57 Change of control, change in responsible persons, and change of 
          employees.
555.58 Continuing partnerships.
555.59 Right of succession by certain persons.
555.60 Certain continuances of business or operations.
555.61 Discontinuance of business or operations.
555.62 State or other law.
555.63 Explosives magazine changes.

                Subpart E_License and Permit Proceedings

555.71 Opportunity for compliance.
555.72 Denial of initial application.
555.73 Hearing after initial application is denied.
555.74 Denial of renewal application or revocation of license or permit.
555.75 Hearing after denial of renewal application or revocation of 
          license or permit.
555.76 Action by regional director (compliance).
555.77 Designated place of hearing.
555.78 Representation at a hearing.
555.79 Appeal on petition to the Director.
555.80 Court review.
555.81 Service on applicant, licensee, or permittee.
555.82 Provisions of part 200 made applicable.
555.83 Operations by licensees or permittees after notice of denial or 
          revocation.

               Subpart F_Conduct of Business or Operations

555.101 Posting of license or user permit.
555.102 Authorized operations by permittees.
555.103 Transactions among licensees/permittees and transactions among 
          licensees and holders of user permits.
555.104 Certified copy of license or permit.
555.105 Distributions to nonlicensees, nonpermittees, and limited 
          permittees.
555.106 Certain prohibited distributions.
555.107 Record of transactions.
555.108 Importation.
555.109 Identification of explosive materials.
555.110 Furnishing of samples (Effective on and after January 24, 2003).

                      Subpart G_Records and Reports

555.121 General.
555.122 Records maintained by licensed importers.
555.123 Records maintained by licensed manufacturers.
555.124 Records maintained by licensed dealers.
555.125 Records maintained by permittees.

[[Page 116]]

555.126 Explosives transaction record for distribution of explosive 
          materials prior to May 24, 2003 and Limited Permittee 
          Transaction Report for distribution of explosive materials on 
          and after May 24, 2003.
555.127 Daily summary of magazine transactions.
555.128 Discontinuance of business.
555.129 Exportation.
555.130 [Reserved]

                          Subpart H_Exemptions

555.141 Exemptions.
555.142 Relief from disabilities (effective January 24, 2003).

      Subpart I_Unlawful Acts, Penalties, Seizures, and Forfeitures

555.161 Engaging in business without a license.
555.162 False statement or representation.
555.163 False entry in record.
555.164 Unlawful storage.
555.165 Failure to report theft or loss.
555.166 Seizure or forfeiture.

                 Subpart J_Marking of Plastic Explosives

555.180 Prohibitions relating to unmarked plastic explosives.
555.181 Reporting of plastic explosives.
555.182 Exceptions.
555.183 Importations of plastic explosives on or after April 24, 1997.
555.184 Statements of process and samples.
555.185 Criminal sanctions.
555.186 Seizure or forfeiture.

                            Subpart K_Storage

555.201 General.
555.202 Classes of explosive materials.
555.203 Types of magazines.
555.204 Inspection of magazines.
555.205 Movement of explosive materials.
555.206 Location of magazines.
555.207 Construction of type 1 magazines.
555.208 Construction of type 2 magazines.
555.209 Construction of type 3 magazines.
555.210 Construction of type 4 magazines.
555.211 Construction of type 5 magazines.
555.212 Smoking and open flames.
555.213 Quantity and storage restrictions.
555.214 Storage within types 1, 2, 3, and 4 magazines.
555.215 Housekeeping.
555.216 Repair of magazines.
555.217 Lighting.
555.218 Table of distances for storage of explosive materials.
555.219 Table of distances for storage of low explosives.
555.220 Table of separation distances of ammonium nitrate and blasting 
          agents from explosives or blasting agents.
555.221 Requirements for display fireworks, pyrotechnic compositions, 
          and explosive materials used in assembling fireworks or 
          articles pyrotechnic.
555.222 Table of distances between fireworks process buildings and 
          between fireworks process and fireworks nonprocess buildings.
555.223 Table of distances between fireworks process buildings and other 
          specified areas.
555.224 Table of distances for the storage of display fireworks (except 
          bulk salutes).

    Authority: 18 U.S.C. 847.

    Source: T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, unless otherwise 
noted. Redesignated by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003.

    Editorial Note: Nomenclature changes to part 555 appear at 68 FR 
3748, Jan. 24, 2003.



                         Subpart A_Introduction



Sec. 555.1  Scope of regulations.

    (a) In general. The regulations contained in this part relate to 
commerce in explosives and implement Title XI, Regulation of Explosives 
(18 U.S.C. Chapter 40; 84 Stat. 952), of the Organized Crime Control Act 
of 1970 (84 Stat. 922), Pub. L. 103-322 (108 Stat. 1796), Pub. L. 104-
132 (110 Stat. 1214), and Pub. L. 107-296 (116 Stat. 2135).
    (b) Procedural and substantive requirements. This part contains the 
procedural and substantive requirements relative to:
    (1) The interstate or foreign commerce in explosive materials;
    (2) The licensing of manufacturers and importers of, and dealers in, 
explosive materials;
    (3) The issuance of permits;
    (4) The conduct of business by licensees and operations by 
permittees;
    (5) The storage of explosive materials;
    (6) The records and reports required of licensees and permittees;
    (7) Relief from disabilities under this part;
    (8) Exemptions, unlawful acts, penalties, seizures, and forfeitures; 
and
    (9) The marking of plastic explosives.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-363, 60 
FR 17449, Apr. 6, 1995; T.D. ATF-387, 62 FR 8376, Feb. 25, 1997; ATF No. 
1, 68 FR 13780, Mar. 20, 2003]

[[Page 117]]



Sec. 555.2  Relation to other provisions of law.

    The provisions in this part are in addition to, and are not in lieu 
of, any other provision of law, or regulations, respecting commerce in 
explosive materials. For regulations applicable to commerce in firearms 
and ammunition, see Part 478 of this chapter. For regulations applicable 
to traffic in machine guns, destructive devices, and certain other 
firearms, see Part 479 of this chapter. For statutes applicable to the 
registration and licensing of persons engaged in the business of 
manufacturing, importing or exporting arms, ammunition, or implements of 
war, see section 38 of the Arms Export Control Act (22 U.S.C. 2778), and 
regulations of Part 447 of this chapter and in Parts 121 through 128 of 
Title 22, Code of Federal Regulations. For statutes applicable to 
nonmailable materials, see 18 U.S.C. 1716 and implementing regulations. 
For statutes applicable to water quality standards, see 33 U.S.C. 1341.



                          Subpart B_Definitions



Sec. 555.11  Meaning of terms.

    When used in this part, terms are defined as follows in this 
section. Words in the plural form include the singular, and vice versa, 
and words indicating the masculine gender include the feminine. The 
terms ``includes'' and ``including'' do not exclude other things not 
named which are in the same general class or are otherwise within the 
scope of the term defined.
    Act. 18 U.S.C. Chapter 40.
    Adjudicated as a mental defective. (a) A determination by a court, 
board, commission, or other lawful authority that a person, as a result 
of marked subnormal intelligence, or mental illness, incompetency, 
condition, or disease:
    (1) Is a danger to himself or to others; or
    (2) Lacks the mental capacity to contract or manage his own affairs.
    (b) The term will include--
    (1) A finding of insanity by a court in a criminal case; and
    (2) Those persons found incompetent to stand trial or found not 
guilty by reason of lack of mental responsibility by any court or 
pursuant to articles 50a and 76b of the Uniform Code of Military 
Justice, 10 U.S.C. 850a, 876b.
    Alien. Any person who is not a citizen or national of the United 
States.
    Ammunition. Small arms ammunition or cartridge cases, primers, 
bullets, or smokeless propellants designed for use in small arms, 
including percussion caps, and 3/32 inch and other external burning 
pyrotechnic hobby fuses. The term does not include black powder.
    Appropriate identifying information. The term means, in relation to 
an individual:
    (a) The full name, date of birth, place of birth, sex, race, street 
address, State of residence, telephone numbers (home and work), country 
or countries of citizenship, and position at the employer's business or 
operations of responsible persons and employees authorized to possess 
explosive materials;
    (b) The business name, address, and license or permit number with 
which the responsible person or employee is affiliated;
    (c) If an alien, INS-issued alien number or admission number; and
    (d) Social security number, as optional information (this 
information is not required but is helpful in avoiding misidentification 
when a background check is conducted).
    Approved storage facility. A place where explosive materials are 
stored, consisting of one or more approved magazines, conforming to the 
requirements of this part and covered by a license or permit issued 
under this part.
    Articles pyrotechnic. Pyrotechnic devices for professional use 
similar to consumer fireworks in chemical composition and construction 
but not intended for consumer use. Such articles meeting the weight 
limits for consumer fireworks but not labeled as such and classified by 
U.S. Department of Transportation regulations in 49 CFR 172.101 as 
UN0431 or UN0432.
    Artificial barricade. An artificial mound or revetted wall of earth 
of a minimum thickness of three feet, or any other approved barricade 
that offers equivalent protection.
    ATF. (a) Prior to January 24, 2003. The Bureau of Alcohol, Tobacco 
and Firearms, Department of the Treasury, Washington, DC.

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    (b) On and after January 24, 2003. The Bureau of Alcohol, Tobacco, 
Firearms and Explosives, Department of Justice, Washington, DC.
    ATF officer. (a) Prior to January 24, 2003. An officer or employee 
of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to 
perform any function relating to the administration or enforcement of 
this part.
    (b) On and after January 24, 2003. An officer or employee of the 
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) authorized to 
perform any function relating to the administration or enforcement of 
this part.
    Authority having jurisdiction for fire safety. The fire department 
having jurisdiction over sites where explosives are manufactured or 
stored.
    Barricaded. The effective screening of a magazine containing 
explosive materials from another magazine, a building, a railway, or a 
highway, either by a natural barricade or by a artificial barricade. To 
be properly barricaded, a straight line from the top of any sidewall of 
the magazine containing explosive materials to the eave line of any 
other magazine or building, or to a point 12 feet above the center of a 
railway or highway, will pass through the natural or artificial 
barricade.
    Blasting agent. Any material or mixture, consisting of fuel and 
oxidizer, that is intended for blasting and not otherwise defined as an 
explosive; if the finished product, as mixed for use or shipment, cannot 
be detonated by means of a number 8 test blasting cap when unconfined. A 
number 8 test blasting cap is one containing 2 grams of a mixture of 80 
percent mercury fulminate and 20 percent potassium chlorate, or a 
blasting cap of equivalent strength. An equivalent strength cap 
comprises 0.40-0.45 grams of PETN base charge pressed in an aluminum 
shell with bottom thickness not to exceed to 0.03 of an inch, to a 
specific gravity of not less than 1.4 g/cc., and primed with standard 
weights of primer depending on the manufacturer.
    Bulk salutes. Salute components prior to final assembly into aerial 
shells, and finished salute shells held separately prior to being packed 
with other types of display fireworks.
    Bullet-sensitive explosive materials. Explosive materials that can 
be exploded by 150-grain M2 ball ammunition having a nominal muzzle 
velocity of 2700 fps (824 mps) when fired from a .30 caliber rifle at a 
distance of 100 ft (30.5 m), measured perpendicular. The test material 
is at a temperature of 70 to 75 degrees F (21 to 24 degrees C) and is 
placed against a \1/2\ inch (12.4 mm) steel backing plate.
    Bureau. (a) Prior to January 24, 2003. The Bureau of Alcohol, 
Tobacco and Firearms, Department of the Treasury, Washington, DC.
    (b) On and after January 24, 2003. The Bureau of Alcohol, Tobacco, 
Firearms and Explosives, Department of Justice, Washington, DC.
    Business premises. When used with respect to a manufacturer, 
importer, or dealer, the property on which explosive materials are 
manufactured, imported, stored or distributed. The premises include the 
property where the records of a manufacturer, importer, or dealer are 
kept if different than the premises where explosive materials are 
manufactured, imported, stored or distributed. When used with respect to 
a user of explosive materials, the property on which the explosive 
materials are received or stored. The premises includes the property 
where the records of the users are kept if different than the premises 
where explosive materials are received or stored.
    Chief, Firearms and Explosives Licensing Center. The ATF official 
responsible for the issuance and renewal of licenses and permits under 
this part.
    Committed to a mental institution. A formal commitment of a person 
to a mental institution by a court, board, commission, or other lawful 
authority. The term includes a commitment to a mental institution 
involuntarily. The term includes commitment for mental defectiveness or 
mental illness. It also includes commitments for other reasons, such as 
for drug use. The term does not include a person in a mental institution 
for observation or a voluntary admission to a mental institution.
    Common or contract carrier. Any individual or organization engaged 
in the business of transporting passengers or goods.

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    Consumer fireworks. Any small firework device designed to produce 
visible effects by combustion and which must comply with the 
construction, chemical composition, and labeling regulations of the U.S. 
Consumer Product Safety Commission, as set forth in title 16, Code of 
Federal Regulations, parts 1500 and 1507. Some small devices designed to 
produce audible effects are included, such as whistling devices, ground 
devices containing 50 mg or less of explosive materials, and aerial 
devices containing 130 mg or less of explosive materials. Consumer 
fireworks are classified as fireworks UN0336, and UN0337 by the U.S. 
Department of Transportation at 49 CFR 172.101. This term does not 
include fused setpieces containing components which together exceed 50 
mg of salute powder.
    Controlled substance. A drug or other substance, or immediate 
precursor, as defined in section 102 of the Controlled Substances Act, 
21 U.S.C. 802. The term includes, but is not limited to, marijuana, 
depressants, stimulants, and narcotic drugs. The term does not include 
distilled spirits, wine, malt beverages, or tobacco, as those terms are 
defined or used in Subtitle E of the Internal Revenue Code of 1986, as 
amended.
    Crime punishable by imprisonment for a term exceeding one year. Any 
offense for which the maximum penalty, whether or not imposed, is 
capital punishment or imprisonment in excess of one year. The term does 
not include (a) any Federal or State offenses pertaining to antitrust 
violations, unfair trade practices, restraints of trade, or (b) any 
State offense (other than one involving a firearm or explosive) 
classified by the laws of the State as a misdemeanor and punishable by a 
term of imprisonment of two years or less.
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized to perform the duties of an officer of the 
Customs Service.
    Dealer. Any person engaged in the business of distributing explosive 
materials at wholesale or retail.
    Detonator. Any device containing a detonating charge that is used 
for initiating detonation in an explosive. The term includes, but is not 
limited to, electric blasting caps of instantaneous and delay types, 
blasting caps for use with safety fuses, detonating-cord delay 
connectors, and nonelectric instantaneous and delay blasting caps.
    Director. (a) Prior to January 24, 2003. The Director, Bureau of 
Alcohol, Tobacco and Firearms, Department of the Treasury, Washington, 
DC.
    (b) On and after January 24, 2003. The Director, Bureau of Alcohol, 
Tobacco, Firearms and Explosives, Department of Justice, Washington, DC.
    Discharged under dishonorable conditions. Separation from the U.S. 
Armed Forces resulting from a dishonorable discharge or dismissal 
adjudged by general court-martial. The term does not include any 
separation from the Armed Forces resulting from any other discharge, 
e.g., a bad conduct discharge.
    Display fireworks. Large fireworks designed primarily to produce 
visible or audible effects by combustion, deflagration, or detonation. 
This term includes, but is not limited to, salutes containing more than 
2 grains (130 mg) of explosive materials, aerial shells containing more 
than 40 grams of pyrotechnic compositions, and other display pieces 
which exceed the limits of explosive materials for classification as 
``consumer fireworks.'' Display fireworks are classified as fireworks 
UN0333, UN0334 or UN0335 by the U.S. Department of Transportation at 49 
CFR 172.101. This term also includes fused setpieces containing 
components which together exceed 50 mg of salute powder.
    Distribute. To sell, issue, give, transfer, or otherwise dispose of. 
The term does not include a mere change of possession from a person to 
his agent or employee in connection with the agency or employment.
    Executed under penalties of perjury. Signed with the required 
declaration under the penalties of perjury as provided on or with 
respect to the return, form, or other document or, where no form of 
declaration is required, with the declaration:

    ``I declare under the penalties of perjury that this--(insert type 
of document, such as, statement, application, request, certificate), 
including the documents submitted in support thereof, has been examined 
by me and,

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to the best of my knowledge and belief, is true, correct, and 
complete''.

    Explosive actuated device. Any tool or special mechanized device 
which is actuated by explosives, but not a propellent actuated device.
    Explosive materials. Explosives, blasting agents, water gels and 
detonators. Explosive materials include, but are not limited to, all 
items in the ``List of Explosive Materials'' provided for in Sec. 
555.23.
    Explosives. Any chemical compound, mixture, or device, the primary 
or common purpose of which is to function by explosion. The term 
includes, but is not limited to, dynamite and other high explosives, 
black powder, pellet powder, initiating explosives, detonators, safety 
fuses, squibs, detonating cord, igniter cord, and igniters.
    Fireworks. Any composition or device designed to produce a visible 
or an audible effect by combustion, deflagration, or detonation, and 
which meets the definition of ``consumer fireworks'' or ``display 
fireworks'' as defined by this section.
    Fireworks mixing building. Any building or area used for mixing and 
blending pyrotechnic compositions except wet sparkler mix.
    Fireworks nonprocess building. Any office building or other building 
or area in a fireworks plant where no fireworks, pyrotechnic 
compositions or explosive materials are processed or stored.
    Fireworks plant. All land and buildings thereon used for or in 
connection with the assembly or processing of fireworks, including 
warehouses used with or in connection with fireworks plant operations.
    Fireworks plant warehouse. Any building or structure used 
exclusively for the storage of materials which are neither explosive 
materials nor pyrotechnic compositions used to manufacture or assemble 
fireworks.
    Fireworks process building. Any mixing building; any building in 
which pyrotechnic compositions or explosive materials is pressed or 
otherwise prepared for finished and assembly; or any finishing or 
assembly building.
    Fireworks shipping building. A building used for the packing of 
assorted display fireworks into shipping cartons for individual public 
displays and for the loading of packaged displays for shipment to 
purchasers.
    Flash powder. An explosive material intended to produce an audible 
report and a flash of light when ignited which includes but is not 
limited to oxidizers such as potassium chlorate or potassium 
perchlorate, and fuels such as sulfur or aluminum powder.
    Fugitive from justice. Any person who has fled from the jurisdiction 
of any court of record to avoid prosecution for any crime or to avoid 
giving testimony in any criminal proceeding. The term also includes any 
person who has been convicted of any crime and has fled to avoid 
imprisonment.
    Hardwood. Oak, maple, ash, hickory, or other hard wood, free from 
loose knots, spaces, or similar defects.
    Highway. Any public street, public alley, or public road, including 
a privately financed, constructed, or maintained road that is regularly 
and openly traveled by the general public.
    Identification document. A document containing the name, residence 
address, date of birth, and photograph of the holder and which was made 
or issued by or under the authority of the United States Government, a 
State, political subdivision of a State, a foreign government, a 
political subdivision of a foreign government, an international 
governmental or an international quasi-governmental organization which, 
when completed with information concerning a particular individual, is 
of a type intended or commonly accepted for the purpose of 
identification of individuals.
    Importer. Any person engaged in the business of importing or 
bringing explosive materials into the United States for purposes of sale 
or distribution.
    Indictment. Includes an indictment or information in any court under 
which a crime punishable by imprisonment for a term exceeding one year 
may be prosecuted.
    Inhabited building. Any building regularly occupied in whole or in 
part as a habitation for human beings, or any church, schoolhouse, 
railroad station, store, or other structure where people are accustomed 
to assemble, except any building occupied in connection

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with the manufacture, transportation, storage, or use of explosive 
materials.
    Interstate or foreign commerce. Commerce between any place in a 
State and any place outside of that State, or within any possession of 
the United States or the District of Columbia, and commerce between 
places within the same State but through any place outside of that 
State.
    Licensed dealer. A dealer licensed under this part.
    Licensed importer. An importer licensed under this part.
    Licensed manufacturer. A manu facturer licensed under this part to 
engage in the business of manufacturing explosive materials for purposes 
of sale or distribution or for his own use.
    Licensee. Any importer, manufacturer, or dealer licensed under this 
part.
    Limited permit. A permit issued to a person authorizing him to 
receive for his use explosive materials from a licensee or permittee in 
his state of residence on no more than 6 occasions during the 12-month 
period in which the permit is valid. A limited permit does not authorize 
the receipt or transportation of explosive materials in interstate or 
foreign commerce.
    Magazine. Any building or structure, other than an explosives 
manufacturing building, used for storage of explosive materials.
    Manufacturer. Any person engaged in the business of manufacturing 
explosive materials for purposes of sale or distribution or for his own 
use.
    Mass detonation (mass explosion). Explosive materials mass detonate 
(mass explode) when a unit or any part of a larger quantity of explosive 
material explodes and causes all or a substantial part of the remaining 
material to detonate or explode.
    Mental institution. Includes mental health facilities, mental 
hospitals, sanitariums, psychiatric facilities, and other facilities 
that provide diagnoses by licensed professionals of mental retardation 
or mental illness, including a psychiatric ward in a general hospital.
    Natural barricade. Natural features of the ground, such as hills, or 
timber of sufficient density that the surrounding exposures which 
require protection cannot be seen from the magazine when the trees are 
bare of leaves.
    Number 8 test blasting cap. (See definition of ``blasting agent.'')
    Permittee. Any user of explosives for a lawful purpose who has 
obtained either a user permit or a limited permit under this part.
    Person. Any individual, corporation, company, association, firm, 
partnership, society, or joint stock company.
    Plywood. Exterior, construction grade (laminated wood) plywood.
    Propellant actuated device. Any tool or special mechanized device or 
gas generator system which is actuated by a propellant or which releases 
and directs work through a propellant charge.
    Pyrotechnic compositions. A chemical mixture which, upon burning and 
without explosion, produces visible, brilliant displays, bright lights, 
or sounds.
    Railway. Any steam, electric, or other railroad or railway which 
carries passengers for hire.
    Region. A geographical region of the Bureau of Alcohol, Tobacco and 
Firearms.
    Regional director (compliance). The principal regional official 
responsible for administering regulations in this part.
    Renounced U.S. citizenship. (a) A person has renounced his U.S. 
citizenship if the person, having been a citizen of the United States, 
has renounced citizenship either--
    (1) Before a diplomatic or consular officer of the United States in 
a foreign state pursuant to 8 U.S.C. 1481(a)(5); or
    (2) Before an officer designated by the Attorney General when the 
United States is in a state of war pursuant to 8 U.S.C. 1481(a)(6).
    (b) The term will not include any renunciation of citizenship that 
has been reversed as a result of administrative or judicial appeal.
    Responsible person. An individual who has the power to direct the 
management and policies of the applicant pertaining to explosive 
materials. Generally, the term includes partners, sole proprietors, site 
managers, corporate officers and directors, and majority shareholders.
    Salute. An aerial shell, classified as a display firework, that 
contains a charge of flash powder and is designed

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to produce a flash of light and a loud report as the pyrotechnic effect.
    Screen barricade. Any barrier that will contain the embers and 
debris from a fire or deflagration in a process building, thus 
preventing propagation of fire to other buildings or areas. Such 
barriers shall be constructed of metal roofing, \1/4\ to \1/2\ inch (6 
to 13 mm) mesh screen, or equivalent material. The barrier extends from 
floor level to a height such that a straight line from the top of any 
side wall of the donor building to the eave line of any exposed building 
intercepts the screen at a point not less than 5 feet (1.5 m) from the 
top of the screen. The top 5 feet (1.5 m) of the screen is inclined 
towards the donor building at an angle of 30 to 45 degrees.
    Softwood. Fir, pine, or other soft wood, free from loose knots, 
spaces, or similar defects.
    State. A State of the United States. The term includes the District 
of Columbia, the Commonwealth of Puerto Rico, and the possessions of the 
United States.
    State of residence. The State in which an individual regularly 
resides or maintains his home. Temporary stay in a State does not make 
the State of temporary stay the State of residence.
    Theatrical flash powder. Flash powder commercially manufactured in 
premeasured kits not exceeding 1 ounce and mixed immediately prior to 
use and intended for use in theatrical shows, stage plays, band 
concerts, magic acts, thrill shows, and clown acts in circuses.
    Unlawful user of or addicted to any controlled substance. A person 
who uses a controlled substance and has lost the power of self-control 
with reference to the use of a controlled substance; and any person who 
is a current user of a controlled substance in a manner other than as 
prescribed by a licensed physician. Such use is not limited to the use 
of drugs on a particular day, or within a matter of days or weeks before 
possession of the explosive materials, but rather that the unlawful use 
has occurred recently enough to indicate that the individual is actively 
engaged in such conduct. A person may be an unlawful current user of a 
controlled substance even though the substance is not being used at the 
precise time the person seeks to acquire explosive materials or receives 
or possesses explosive materials. An inference of current use may be 
drawn from evidence of a recent use or possession of a controlled 
substance or a pattern of use or possession that reasonably covers the 
present time, e.g., a conviction for use or possession of a controlled 
substance within the past year; multiple arrests for such offenses 
within the past 5 years if the most recent arrest occurred within the 
past year; or persons found through a drug test to use a controlled 
substance unlawfully, provided that the test was administered within the 
past year. For a current or former member of the Armed Forces, an 
inference of current use may be drawn from recent disciplinary or other 
administrative action based on confirmed drug use, e.g., court-martial 
conviction, nonjudicial punishment, or an administrative discharge based 
on drug use or drug rehabilitation failure.
    U.S.C. The United States Code.
    User-limited permit. A user permit valid only for a single purchase 
transaction, a new permit being required for a subsequent purchase 
transaction.
    User permit. A permit issued to a person authorizing him (a) to 
acquire for his own use explosive materials from a licensee in a State 
other than the State in which he resides or from a foreign country, and 
(b) to transport explosive materials in interstate or foreign commerce.
    Water gels. Explosives or blasting agents that contain a substantial 
proportion of water.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-92, 46 
FR 46916, Sept. 23, 1981; T.D. ATF-200, 50 FR 10497, Mar. 15, 1985; T.D. 
ATF-290, 54 FR 53053, Dec. 27, 1989; T.D. ATF-293, 55 FR 3720, Feb. 5, 
1990; T.D. ATF-314, 56 FR 49140, Sept. 27, 1991; T.D. ATF-382, 61 FR 
38084, July 23, 1996; T.D. ATF-400, 63 FR 45001, Aug. 24, 1998; T.D. 
ATF-446, 66 FR 16602, Mar. 27, 2001; ATF No. 1, 68 FR 13780, Mar. 20, 
2003]

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          Subpart C_Administrative and Miscellaneous Provisions



Sec. 555.21  Forms prescribed.

    (a) The Director is authorized to prescribe all forms required by 
this part. All of the information called for in each form shall be 
furnished as indicated by the headings on the form and the instructions 
on or pertaining to the form. In addition, information called for in 
each form shall be furnished as required by this part.
    (b) Requests for forms should be mailed to the ATF Distribution 
Center, 7943 Angus Court, Springfield, Virginia 22153.

[T.D. ATF-92, 46 FR 46916, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996]



Sec. 555.22  Alternate methods or procedures; emergency variations 
from requirements.

    (a) Alternate methods or procedures. The permittee or licensee, on 
specific approval by the Director as provided by this paragraph, may use 
an alternate method or procedure in lieu of a method or procedure 
specifically prescribed in this part. The Director may approve an 
alternate method or procedure, subject to stated conditions, when he 
finds that:
    (1) Good cause is shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure and that the alternate method or procedure is 
substantially equivalent to that specifically prescribed method or 
procedure; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law and will not result in an increase in cost to the 
Government or hinder the effective administration of this part.

Where the permittee or licensee desires to employ an alternate method or 
procedure, he shall submit a written application to the regional 
director (compliance), for transmittal to the Director. The application 
shall specifically describe the proposed alternate method or procedure 
and shall set forth the reasons for it. Alternate methods or procedures 
may not be employed until the application is approved by the Director. 
The permittee or licensee shall, during the period of authorization of 
an alternate method or procedure, comply with the terms of the approved 
application. Authorization of any alternate method or procedure may be 
withdrawn whenever, in the judgment of the Director, the effective 
administration of this part is hindered by the continuation of the 
authorization. As used in this paragraph, alternate methods or 
procedures include alternate construction or equipment.
    (b) Emergency variations from requirements. The Director may approve 
construction, equipment, and methods of operation other than as 
specified in this part, where he finds that an emergency exists and the 
proposed variations from the specified requirements are necessary and 
the proposed variations:
    (1) Will afford security and protection that are substantially 
equivalent to those prescribed in this part;
    (2) Will not hinder the effective administration of this part; and
    (3) Will not be contrary to any provisions of law.

Variations from requirements granted under this paragraph are 
conditioned on compliance with the procedures, conditions, and 
limitations set forth in the approval of the application. Failure to 
comply in good faith with the procedures, conditions, and limitations 
shall automatically terminate the authority for the variations and the 
licensee or permittee shall fully comply with the prescribed 
requirements of regulations from which the variations were authorized. 
Authority for any variation may be withdrawn whenever, in the judgment 
of the Director, the effective administration of this part is hindered 
by the continuation of the variation. Where the licensee or permittee 
desires to employ an emergency variation, he shall submit a written 
application to the regional director (compliance) for transmittal to the 
Director. The application shall describe the proposed variation and set 
forth the reasons for it. Variations may not be employed until the 
application is approved, except

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when the emergency requires immediate action to correct a situation that 
is threatening to life or property. Corrective action may then be taken 
concurrent with the filing of the application and notification of the 
Director via telephone.
    (c) Retention of approved variations. The licensee or permittee 
shall retain, as part of his records available for examination by ATF 
officers, any application approved by the Director under this section.



Sec. 555.23  List of explosive materials.

    The Director shall compile a list of explosive materials, which 
shall be published and revised at least annually in the Federal 
Register. The ``List of Explosive Materials'' (ATF Publication 5400.8) 
is available at no cost upon request from the ATF Distribution Center, 
7943 Angus Court, Springfield, Virginia 22153.

[T.D. ATF-290, 54 FR 53054, Dec. 27, 1989, as amended by T.D. ATF-446, 
66 FR 16602, Mar. 27, 2001]



Sec. 555.24  Right of entry and examination.

    (a) Any ATF officer may enter during business hours the premises, 
including places of storage, of any licensee or holder of a user permit 
for the purpose of inspecting or examining any records or documents 
required to be kept under this part, and any facilities in which 
explosive materials are kept or stored.
    (b) Any ATF officer may inspect the places of storage for explosive 
materials of an applicant for a limited permit or, in the case of a 
holder of a limited permit, at the time of renewal of such permit.
    (c) The provisions of paragraph (b) of this section do not apply to 
an applicant for the renewal of a limited permit if an ATF officer has, 
within the preceding 3 years, verified by inspection that the 
applicant's place of storage for explosive materials meets the 
requirements of subpart K of this part.

[ATF No. 1, 68 FR 13781, Mar. 20, 2003]



Sec. 555.25  Disclosure of information.

    Upon receipt of written request from any State or any political 
subdivision of a State, the regional director (compliance) may make 
available to the State or politicial subdivision any information which 
the regional director (compliance) may obtain under the Act with respect 
to the identification of persons within the State or political 
subdivision, who have purchased or received explosive materials, 
together with a description of the explosive materials.



Sec. 555.26  Prohibited shipment, transportation, receipt, possession, 
or distribution of explosive materials.

    (a) General. No person, other than a licensee or permittee knowingly 
may transport, ship, cause to be transported, or receive any explosive 
materials: Provided, That the provisions of this paragraph (a) do not 
apply to the lawful purchase by a nonlicensee or nonpermittee of 
commercially manufactured black powder in quantities not to exceed 50 
pounds, 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).
    (b) Holders of a limited permit. No person who is a holder of a 
limited permit may--
    (1) Transport, ship, cause to be transported, or receive in 
interstate or foreign commerce any explosive materials;
    (2) Receive explosive materials from a licensee or permittee, whose 
premises are located outside the State of residence of the limited 
permit holder; or
    (3) Receive explosive materials on more than 6 separate occasions, 
during the period of the permit, from one or more licensees or 
permittees whose premises are located within the State of residence of 
the limited permit holder. (See Sec. 555.105(b) for the definition of 
``6 separate occasions.'')
    (c) Possession by prohibited persons. No person may ship or 
transport any explosive material in or affecting interstate or foreign 
commerce or receive or possess any explosive materials which have been 
shipped or transported in or affecting interstate or foreign commerce 
who:
    (1) Is under indictment or information for, or who has been 
convicted in

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any court of, a crime punishable by imprisonment for a term exceeding 
one year;
    (2) Is a fugitive from justice;
    (3) Is an unlawful user of or addicted to any controlled substance 
(as defined in section 102 of the Controlled Substances Act (21 U.S.C. 
802) and Sec. 555.11);
    (4) Has been adjudicated as a mental defective or has been committed 
to a mental institution;
    (5) Is an alien, other than an alien who--
    (i) Is lawfully admitted for permanent residence (as that term is 
defined in section 101(a)(20) of the Immigration and Nationality Act (8 
U.S.C. 1101)); or
    (ii) Is in lawful nonimmigrant status, is a refugee admitted under 
section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or 
is in asylum status under section 208 of the Immigration and Nationality 
Act (8 U.S.C. 1158), and--
    (A) Is a foreign law enforcement officer of a friendly foreign 
government, as determined by the Attorney General in consultation with 
the Secretary of State, entering the United States on official law 
enforcement business, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of this official law 
enforcement business;
    (B) Is a person having the power to direct or cause the direction of 
the management and policies of a corporation, partnership, or 
association licensed pursuant to section 843(a) of the Act, and the 
shipping, transporting, possession, or receipt of explosive materials is 
in furtherance of such power;
    (C) Is a member of a North Atlantic Treaty Organization (NATO) or 
other friendly foreign military force, as determined by the Attorney 
General in consultation with the Secretary of Defense, (whether or not 
admitted in a nonimmigrant status) who is present in the United States 
under military orders for training or other military purpose authorized 
by the United States, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of the military 
purpose; or
    (D) Is lawfully present in the United States in cooperation with the 
Director of Central Intelligence, and the shipment, transportation, 
receipt, or possession of the explosive materials is in furtherance of 
such cooperation;
    (6) Has been discharged from the armed forces under dishonorable 
conditions; or
    (7) Having been a citizen of the United States, has renounced 
citizenship.
    (d) Distribution to prohibited persons. No person may knowingly 
distribute explosive materials to any individual who:
    (1) Is under twenty-one years of age;
    (2) Is under indictment or information for, or who has been 
convicted in any court of, a crime punishable by imprisonment for a term 
exceeding one year;
    (3) Is a fugitive from justice;
    (4) Is an unlawful user of or addicted to any controlled substance 
(as defined in section 102 of the Controlled Substances Act (21 U.S.C. 
802) and Sec. 555.11);
    (5) Has been adjudicated as a mental defective or has been committed 
to a mental institution;
    (6) Is an alien, other than an alien who--
    (i) Is lawfully admitted for permanent residence (as that term is 
defined in section 101(a)(20) of the Immigration and Nationality Act (8 
U.S.C. 1101)); or
    (ii) Is in lawful nonimmigrant status, is a refugee admitted under 
section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or 
is in asylum status under section 208 of the Immigration and Nationality 
Act (8 U.S.C. 1158), and--
    (A) Is a foreign law enforcement officer of a friendly foreign 
government, as determined by the Attorney General in consultation with 
the Secretary of State, entering the United States on official law 
enforcement business, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of this official law 
enforcement business;
    (B) Is a person having the power to direct or cause the direction of 
the management and policies of a corporation, partnership, or 
association licensed pursuant to section 843(a) of the Act, and the 
shipping, transporting, possession, or receipt of explosive materials is 
in furtherance of such power;

[[Page 126]]

    (C) Is a member of a North Atlantic Treaty Organization (NATO) or 
other friendly foreign military force, as determined by the Attorney 
General in consultation with the Secretary of Defense, (whether or not 
admitted in a nonimmigrant status) who is present in the United States 
under military orders for training or other military purpose authorized 
by the United States, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of the military 
purpose; or
    (D) Is lawfully present in the United States in cooperation with the 
Director of Central Intelligence, and the shipment, transportation, 
receipt, or possession of the explosive materials is in furtherance of 
such cooperation;
    (7) Has been discharged from the armed forces under dishonorable 
conditions; or
    (8) Having been a citizen of the United States, has renounced 
citizenship.
    (e) See Sec. 555.180 for regulations concerning the prohibited 
manufacture, importation, exportation, shipment, transportation, 
receipt, transfer, or possession of plastic explosives that do not 
contain a detection agent.

[ATF No. 1, 68 FR 13781, Mar. 20, 2003]



Sec. 555.27  Out-of-State disposition of explosive materials.

    (a) No nonlicensee or nonpermittee may distribute any explosive 
materials to any other nonlicensee or nonpermittee who the distributor 
knows or who has reasonable cause to believe does not reside in the 
State in which the distributor resides.
    (b) The provisions of this section do not apply on and after May 24, 
2003.

[ATF No. 1, 68 FR 13782, Mar. 20, 2003]



Sec. 555.28  Stolen explosive materials.

    No person shall receive, conceal, transport, ship, store, barter, 
sell, or dispose of any stolen explosive materials knowing or having 
reasonable cause to believe that the explosive materials were stolen.



Sec. 555.29  Unlawful storage.

    No person shall store any explosive materials in a manner not in 
conformity with this part.



Sec. 555.30  Reporting theft or loss of explosive materials.

    (a) Any licensee or permittee who has knowledge of the theft or loss 
of any explosive materials from his stock shall, within 24 hours of 
discovery, report the theft or loss by telephoning 1-800-800-3855 
(nationwide toll free number) and on ATF F 5400.5 (formerly Form 4712) 
in accordance with the instructions on the form. Theft or loss of any 
explosive materials shall also be reported to appropriate local 
authorities.
    (b) Any other person, except a carrier of explosive materials, who 
has knowledge of the theft or loss of any explosive materials from his 
stock shall, within 24 hours of discovery, report the theft or loss by 
telephoning 1-800-800-3855 (nationwide toll free number) and in writing 
to the nearest ATF office. Theft or loss shall be reported to 
appropriate local authorities.
    (c) Reports of theft or loss of explosive materials under paragraphs 
(a) and (b) of this section must include the following information, if 
known:
    (1) The manufacturer or brand name.
    (2) The manufacturer's marks of identification (date and shift 
code).
    (3) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, etc.).
    (4) Description (dynamite, blasting agents, detonators, etc.) and 
United Nations (UN) identification number, hazard division number, and 
classification letter, e.g., 1.1D, as classified by the U.S. Department 
of Transportation at 49 CFR 172.101 and 173.52.
    (5) Size (length and diameter).
    (d) A carrier of explosive materials who has knowledge of the theft 
or loss of any explosive materials shall, within 24 hours of discovery, 
report the theft or loss by telephoning 1-800-800-3855 (nationwide toll 
free number). Theft or loss shall also be reported to appropriate local 
authorities. Reports of theft or loss of explosive materials by carriers 
shall include the following information, if known:
    (1) The manufacturer or brand name.

[[Page 127]]

    (2) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, etc.).
    (3) Description (United Nations (UN) identification number, hazard 
division number, and classification letter, e.g., 1.1D) as classified by 
the U.S. Department of Transportation at 49 CFR 172.101 and 173.52.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45002, Aug. 24, 1998]



Sec. 555.31  Inspection of site accidents or fires; right of entry.

    Any ATF officer may inspect the site of any accident or fire in 
which there is reason to believe that explosive materials were involved. 
Any ATF officer may enter into or upon any property where explosive 
materials have been used, are suspected of having been used, or have 
been found in an otherwise unauthorized location.



Sec. 555.32  Special explosive devices.

    The Director may exempt certain explosive actuated devices, 
explosive actuated tools, or similar devices from the requirements of 
this part. A person who desires to obtain an exemption under this 
section for any special explosive device, which as designed does not 
constitute a public safety or security hazard, shall submit a written 
request to the Director. Each request shall be executed under the 
penalties of perjury and contain a complete and accurate description of 
the device, the name and address of the manufacturer or importer, the 
purpose of and use for which it is intended, and any photographs, 
diagrams, or drawings as may be necessary to enable the Director to make 
a determination. The Director may require that a sample of the device be 
submitted for examination and evaluation. If it is not possible to 
submit the device, the person requesting the exemption shall advise the 
Director and designate the place where the device will be available for 
examination and evaluation.



Sec. 555.33  Background checks and clearances (effective May 24, 2003).

    (a) Background checks. (1) If the Director receives from a licensee 
or permittee the names and appropriate identifying information of 
responsible persons and employees who will be authorized by the employer 
to possess explosive materials in the course of employment with the 
employer, the Director will conduct a background check in accordance 
with this section.
    (2) The Director will determine whether the responsible person or 
employee is one of the persons described in any paragraph of section 
842(i) of the Act (see Sec. 555.26). In making such determination, the 
Director may take into account a letter or document issued under 
paragraph (a)(3) of this section.
    (3)(i) If the Director determines that the responsible person or the 
employee is not one of the persons described in any paragraph of section 
842(i) of the Act (see Sec. 555.26), the Director will notify the 
employer in writing or electronically of the determination and issue, to 
the responsible person or employee, as the case may be, a letter of 
clearance which confirms the determination.
    (ii) If the Director determines that the responsible person or 
employee is one of the persons described in any paragraph of section 
842(i) of the Act (see Sec. 555.26), ATF will notify the employer in 
writing or electronically of the determination and issue to the 
responsible person or the employee, as the case may be, a document that 
confirms the determination; explains the grounds for the determination; 
provides information on how the disability may be relieved; and explains 
how the determination may be appealed. The employer will retain the 
notification as part of his permanent records in accordance with Sec. 
555.121. The employer will take immediate steps to remove the 
responsible person from his position directing the management or 
policies of the business or operations as they relate to explosive 
materials or, as the case may be, to remove the employee from a position 
requiring the possession of explosive materials. Also, if the employer 
has listed the employee as a person authorized to accept delivery of 
explosive materials, as specified in Sec. 555.103 or Sec. 555.105, the 
employer must remove the employee from such list and immediately, and in 
no event later than the second business day

[[Page 128]]

after such change, notify distributors of such change.
    (b) Appeals and correction of erroneous system information. (1) In 
general. A responsible person or employee may challenge the adverse 
determination set out in the letter of denial, in writing and within 45 
days of issuance of the determination, by directing his or her challenge 
to the basis for the adverse determination, or to the accuracy of the 
record upon which the adverse determination is based, to the Director. 
The appeal request must include appropriate documentation or record(s) 
establishing the legal and/or factual basis for the challenge. Any 
record or document of a court or other government entity or official 
furnished in support of an appeal must be certified by the court or 
other government entity or official as a true copy. In the case of an 
employee, or responsible person who did not submit fingerprints, such 
appeal must be accompanied by two properly completed FBI Forms FD-258 
(fingerprint card). The Director will advise the individual in writing 
of his decision and the reasons for the decision.
    (2) Employees. The letter of denial, among other things, will advise 
an employee who elects to challenge an adverse determination to submit 
the fingerprint cards as described above. The employee also will be 
advised of the agency name and address that originated the record 
containing the information causing the adverse determination 
(``originating agency''). At that time, and where appropriate, an 
employee is encouraged to apply to the originating agency to challenge 
the accuracy of the record(s) upon which the denial is based. The 
originating agency may respond to the individual's application by 
addressing the individual's specific reasons for the challenge, and by 
indicating whether additional information or documents are required. If 
the record is corrected as a result of the application to the 
originating agency, the individual may so notify ATF which will, in 
turn, verify the record correction with the originating agency and take 
all necessary steps to contact the agency responsible for the record 
system and correct the record. The employee may provide to ATF 
additional and appropriate documentation or record(s) establishing the 
legal and/or factual basis for the challenge to ATF's decision to uphold 
the initial denial. If ATF does not receive such additional 
documentation or record(s) within 45 days of the date of the decision 
upholding the initial denial, ATF will close the appeal.
    (3) Responsible persons. The letter of denial, among other things, 
will advise a responsible person of the agency name and address which 
originated the record containing the information causing the adverse 
determination (``originating agency''). A responsible person who elects 
to challenge the adverse determination, where appropriate, is encouraged 
to apply to the originating agency to challenge the accuracy of the 
record(s) upon which the denial is based. The originating agency may 
respond to the individual's application by addressing the individual's 
specific reasons for the challenge, and by indicating whether additional 
information or documents are required. If the record is corrected as a 
result of the application to the originating agency, the individual may 
so notify ATF which will, in turn, verify the record correction with the 
originating agency and take all necessary steps to contact the agency 
responsible for the record system and correct the record. A responsible 
person may provide additional documentation or records as specified for 
employees in paragraph (b)(2) of this section.

(Approved by the Office of Management and Budget under control number 
1140-0081)

[ATF No. 1, 68 FR 13783, Mar. 20, 2003]



Sec. 555.34  Replacement of stolen or lost ATF Form 5400.30 (Intrastate 
Purchase of Explosives Coupon (IPEC)).

    When any Form 5400.30 is stolen, lost, or destroyed, the person 
losing possession will, upon discovery of the theft, loss, or 
destruction, immediately, but in all cases before 24 hours have elapsed 
since discovery, report the matter to the Director by telephoning 1-888-
ATF-BOMB (nationwide toll free number). The report will explain in 
detail the circumstances of the theft, loss, or destruction and will 
include all known facts that may serve to identify

[[Page 129]]

the document. Upon receipt of the report, the Director will make such 
investigation as appears appropriate and may issue a duplicate document 
upon such conditions as the circumstances warrant.

(Approved by the Office of Management and Budget under control number 
1140-0077)

[ATF No. 1, 68 FR 13783, Mar. 20, 2003]



                     Subpart D_Licenses and Permits



Sec. 555.41  General.

    (a) Licenses and permits issued prior to May 24, 2003. (1) Each 
person intending to engage in business as an importer or manufacturer 
of, or a dealer in, explosive materials, including black powder, must, 
before commencing business, obtain the license required by this subpart 
for the business to be operated. Each person who intends to acquire for 
use explosive materials from a licensee in a State other than the State 
in which he resides, or from a foreign country, or who intends to 
transport explosive materials in interstate or foreign commerce, must 
obtain a permit under this subpart; except that it is not necessary to 
obtain a permit if the user intends to lawfully purchase:
    (i) Explosive materials from a licensee in a State contiguous to the 
user's State of residence and the user's State of residence has enacted 
legislation, currently in force, specifically authorizing a resident of 
that State to purchase explosive materials in a contiguous State; or
    (ii) Commercially manufactured black powder in quantities not to 
exceed 50 pounds, intended to be used solely for sporting, recreational, 
or cultural purposes in antique firearms or in antique devices.
    (2) Each person intending to engage in business as an explosive 
materials importer, manufacturer, or dealer must file an application, 
with the required fee (see Sec. 555.42), with ATF in accordance with 
the instructions on the form (see Sec. 555.45). A license will, subject 
to law, entitle the licensee to transport, ship, and receive explosive 
materials in interstate or foreign commerce, and to engage in the 
business specified by the license, at the location described on the 
license. A separate license must be obtained for each business premises 
at which the applicant is to manufacture, import, or distribute 
explosive materials except under the following circumstances:
    (i) A separate license will not be required for storage facilities 
operated by the licensee as an integral part of one business premises or 
to cover a location used by the licensee solely for maintaining the 
records required by this part.
    (ii) A separate license will not be required of a licensed 
manufacturer with respect to his on-site manufacturing.
    (iii) It will not be necessary for a licensed importer or a licensed 
manufacturer (for purposes of sale or distribution) to also obtain a 
dealer's license in order to engage in business on his licensed premises 
as a dealer in explosive materials.
    (iv) A separate license will not be required of licensed 
manufacturers with respect to their on-site manufacture of theatrical 
flash powder.
    (3) Except as provided in paragraph (a)(1) of this section, each 
person intending to acquire explosive materials from a licensee in a 
State other than a State in which he resides, or from a foreign country, 
or who intends to transport explosive materials in interstate or foreign 
commerce, must file an application, with the required fee (see Sec. 
555.43), with ATF in accordance with the instructions on the form (see 
Sec. 555.45). A permit will, subject to law, entitle the permittee to 
acquire, transport, ship, and receive in interstate or foreign commerce 
explosive materials of the class authorized by this permit. Only one 
permit is required under this part.
    (b) Licenses and permits issued on and after May 24, 2003. (1) In 
general. (i) Each person intending to engage in business as an importer 
or manufacturer of, or a dealer in, explosive materials, including black 
powder, must, before commencing business, obtain the license required by 
this subpart for the business to be operated.
    (ii) Each person who intends to acquire for use explosive materials 
within the State in which he resides on no more than 6 separate 
occasions during

[[Page 130]]

the 12-month period in which the permit is valid must obtain a limited 
permit under this subpart. (See Sec. 555.105(b) for definition of ``6 
separate occasions.'')
    (iii) Each person who intends to acquire for use explosive materials 
from a licensee or permittee in a State other than the State in which he 
resides, or from a foreign country, or who intends to transport 
explosive materials in interstate or foreign commerce, or who intends to 
acquire for use explosive materials within the State in which he resides 
on more than 6 separate occasions during a 12-month period, must obtain 
a user permit under this subpart.
    (iv) It is not necessary to obtain a permit if the user intends only 
to lawfully purchase commercially manufactured black powder in 
quantities not to exceed 50 pounds, intended to be used solely for 
sporting, recreational, or cultural purposes in antique firearms or in 
antique devices.
    (2) Importers, manufacturers, and dealers. Each person intending to 
engage in business as an explosive materials importer, manufacturer, or 
dealer must file an application, with the required fee (see Sec. 
555.42), with ATF in accordance with the instructions on the form (see 
Sec. 555.45). A license will, subject to law, entitle the licensee to 
transport, ship, and receive explosive materials in interstate or 
foreign commerce, and to engage in the business specified by the 
license, at the location described on the license. A separate license 
must be obtained for each business premises at which the applicant is to 
manufacture, import, or distribute explosive materials except under the 
following circumstances:
    (i) A separate license will not be required for storage facilities 
operated by the licensee as an integral part of one business premises or 
to cover a location used by the licensee solely for maintaining the 
records required by this part.
    (ii) A separate license will not be required of a licensed 
manufacturer with respect to his on-site manufacturing.
    (iii) It will not be necessary for a licensed importer or a licensed 
manufacturer (for purposes of sale or distribution) to also obtain a 
dealer's license in order to engage in business on his licensed premises 
as a dealer in explosive materials. No licensee will be required to 
obtain a user permit to lawfully transport, ship, or receive explosive 
materials in interstate or foreign commerce.
    (iv) A separate license will not be required of licensed 
manufacturers with respect to their on-site manufacture of theatrical 
flash powder.
    (3) Users of explosive materials. (i) A limited permit will, subject 
to law, entitle the holder of such permit to receive for his use 
explosive materials from a licensee or permittee in his state of 
residence on no more than 6 separate occasions during the 12-month 
period in which the permit is valid. A limited permit does not authorize 
the receipt or transportation of explosive materials in interstate or 
foreign commerce. Holders of limited permits who need to receive 
explosive materials on more than 6 separate occasions during a 12-month 
period must obtain a user permit in accordance with this subpart.
    (ii) Each person intending to acquire explosive materials from a 
licensee in a State other than a State in which he resides, or from a 
foreign country, or who intends to transport explosive materials in 
interstate or foreign commerce, must file an application for a user 
permit, with the required fee (see Sec. 555.43), with ATF in accordance 
with the instructions on the form (see Sec. 555.45). A user permit 
will, subject to law, entitle the permittee to transport, ship, and 
receive in interstate or foreign commerce explosive materials of the 
class authorized by this permit. Only one user permit per person is 
required under this part, irrespective of the number of locations 
relating to explosive materials operated by the holder of the user 
permit.

(Approved by the Office of Management and Budget under control number 
1140-0083)

[ATF No. 1, 68 FR 13783, Mar. 20, 2003]



Sec. 555.42  License fees.

    (a) Each applicant shall pay a fee for obtaining a three year 
license, a separate fee being required for each business premises, as 
follows:
    (1) Manufacturer--$200.
    (2) Importer--$200.

[[Page 131]]

    (3) Dealer--$200.
    (b) Each applicant for a renewal of a license shall pay a fee for a 
three year license as follows:
    (1) Manufacturer--$100.
    (2) Importer--$100.
    (3) Dealer--$100.

[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998]



Sec. 555.43  Permit fees.

    (a) Each applicant must pay a fee for obtaining a permit as follows:
    (1) User--$100 for a three-year period.
    (2) User-limited (nonrenewable)--$75.
    (3) Limited--$25 for a one-year period.
    (b)(1) Each applicant for renewal of a user permit must pay a fee of 
$50 for a three-year period.
    (2) Each applicant for renewal of a limited permit must pay a fee of 
$12 for a one-year period.

[ATF No. 1, 68 FR 13785, Mar. 20, 2003]



Sec. 555.44  License or permit fee not refundable.

    No refund of any part of the amount paid as a license or permit fee 
will be made where the operations of the licensee or permittee are, for 
any reason, discontinued during the period of an issued license or 
permit. However, the license or permit fee submitted with an application 
for a license or permit will be refunded if that application is denied, 
withdrawn, or abandoned, or if a license is cancelled subsequent to 
having been issued through administrative error.



Sec. 555.45  Original license or permit.

    (a) Licenses issued prior to May 24, 2003. Any person who intends to 
engage in business as an explosive materials importer, manufacturer, or 
dealer, or who has not timely submitted application for renewal of a 
previous license issued under this part, shall file with ATF an 
application for License, Explosives, ATF F 5400.13 with ATF in 
accordance with the instructions on the form. The application must be 
executed under the penalties of perjury and the penalties imposed by 18 
U.S.C. 844(a). The application is to be accompanied by the appropriate 
fee in the form of a money order or check made payable to the Bureau of 
Alcohol, Tobacco and Firearms. ATF F 5400.13 may be obtained from any 
ATF office. The Chief, Firearms and Explosives Licensing Center, will 
not approve an application postmarked on or after March 20, 2003, unless 
it is submitted with a Responsible Person Questionnaire, ATF Form 
5400.28. Form 5400.28 must be completed in accordance with the 
instructions on the form.
    (b) Permits issued prior to May 24, 2003. Any person, except as 
provided in Sec. 555.41(a), who intends to acquire explosive materials 
from a licensee in a state other than the State in which that person 
resides, or from a foreign country, or who intends to transport 
explosive materials in interstate or foreign commerce, or who has not 
timely submitted application for renewal of a previous permit issued 
under this part, shall file an application for Permit, Explosives, ATF F 
5400.16 or Permit, User Limited Special Fireworks, ATF F 5400.21 with 
ATF in accordance with the instructions on the form. The application 
must be executed under the penalties of perjury and the penalties 
imposed by 18 U.S.C. 844(a). The application is to be accompanied by the 
appropriate fee in the form of a money order or check made payable to 
the Bureau of Alcohol, Tobacco and Firearms. ATF F 5400.16 and ATF F 
5400.21 may be obtained from any ATF office. The Chief, Firearms and 
Explosives Licensing Center, will not approve an application postmarked 
on or after March 20, 2003, unless it is submitted with a Responsible 
Person Questionnaire, ATF Form 5400.28. Form 5400.28 must be completed 
in accordance with the instructions on the form.
    (c) Licenses and permits issued on and after May 24, 2003. (1) 
License. Any person who intends to engage in the business as an importer 
of, manufacturer of, or dealer in explosive materials, or who has not 
timely submitted an application for renewal of a previous license issued 
under this part, must file an application for License, Explosives, ATF F 
5400.13, with ATF in accordance with the instructions on the form. ATF 
Form 5400.13 may be obtained by contacting any ATF office. The 
application must:

[[Page 132]]

    (i) Be executed under the penalties of perjury and the penalties 
imposed by 18 U.S.C. 844(a);
    (ii) Include appropriate identifying information concerning each 
responsible person;
    (iii) Include a photograph and fingerprints for each responsible 
person;
    (iv) Include the names of and appropriate identifying information 
regarding all employees who will be authorized by the applicant to 
possess explosive materials by submitting ATF F 5400.28 for each 
employee; and
    (v) Include the appropriate fee in the form of money order or check 
made payable to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
    (2) User permit and limited permit. Except as provided in Sec. 
555.41(b)(1)(iv), any person who intends to acquire explosive materials 
in the State in which that person resides or acquire explosive materials 
from a licensee or holder of a user permit in a State other than the 
State in which that person resides, or from a foreign country, or who 
intends to transport explosive materials in interstate or foreign 
commerce, or who has not timely submitted an application for renewal of 
a previous permit issued under this part, must file an application for 
Permit, Explosives, ATF F 5400.16 or Permit, User Limited Display 
Fireworks, ATF F 5400.21 with ATF in accordance with the instructions on 
the form. ATF Form 5400.16 and ATF Form 5400.21 may be obtained by 
contacting any ATF office. The application must:
    (i) Be executed under the penalties of perjury and the penalties 
imposed by 18 U.S.C. 844(a);
    (ii) Include a photograph, fingerprints, and appropriate identifying 
information for each responsible person;
    (iii) Include the names of and appropriate identifying information 
regarding all employees who will be authorized by the applicant to 
possess explosive materials by submitting ATF F 5400.28 for each 
employee; and
    (iv) Include the appropriate fee in the form of money order or check 
made payable to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
    (3) The Chief, Firearms and Explosives Licensing Center, will 
conduct background checks on responsible persons and employees 
authorized by the applicant to possess explosive materials in accordance 
with Sec. 555.33. If it is determined that any responsible person or 
employee is described in any paragraph of section 842(i) of the Act, the 
applicant must submit an amended application indicating removal or 
reassignment of that person before the license or permit will be issued.

(Approved by the Office of Management and Budget under control number 
1140-0083)

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[T.D. ATF-200, 50 FR 10497, Mar. 15, 1985, as amended by T.D. ATF-400, 
63 FR 45002, Aug. 24, 1998; ATF No. 1, 68 FR 13785, Mar. 20, 2003]



Sec. 555.46  Renewal of license or permit.

    (a) If a licensee or permittee intends to continue the business or 
operation described on a license or permit issued under this part after 
the expiration date of the license or permit, he shall, unless otherwise 
notified in writing by the Chief, Firearms and Explosives Licensing 
Center, execute and file prior to the expiration of his license or 
permit an application for license renewal, ATF F 5400.14 (Part III), or 
an application for permit renewal, ATF F 5400.15 (Part III), accompanied 
by the required fee, with ATF in accordance with the instructions on the 
form. In the event the licensee or permittee does not timely file a 
renewal application, he shall file an original application as required 
by Sec. 555.45, and obtain the required license or permit in order to 
continue business or operations.
    (b) A user-limited permit is not renewable and is valid for a single 
purchase transaction. Applications for all user-limited permits must be 
filed on ATF F 5400.16 or ATF F 5400.21, as required by Sec. 555.45.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-200, 50 
FR 10497, Mar. 15, 1985; T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; T.D. 
ATF-400, 63 FR 45002, Aug. 24, 1998]



Sec. 555.47  Insufficient fee.

    If an application is filed with an insufficient fee, the application 
and fee

[[Page 133]]

submitted will be returned to the applicant.

(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))

[T.D. ATF-200, 50 FR 10498, Mar. 15, 1985]



Sec. 555.48  Abandoned application.

    Upon receipt of an incomplete or improperly executed application, 
the applicant will be notified of the deficiency in the application. If 
the application is not corrected and returned within 30 days following 
the date of notification, the application will be considered as having 
been abandoned and the license or permit fee returned.



Sec. 555.49  Issuance of license or permit.

    (a) Issuance of license or permit prior to May 24, 2003. (1) The 
Chief, Firearms and Explosives Licensing Center, will issue a license or 
permit if--
    (i) A properly executed application for the license or permit is 
received; and
    (ii) Through further inquiry or investigation, or otherwise, it is 
found that the applicant is entitled to the license or permit.
    (2) The Chief, Firearms and Explosives Licensing Center, will 
approve a properly executed application for a license or permit, if:
    (i) The applicant is 21 years of age or over;
    (ii) The applicant (including, in the case of a corporation, 
partnership, or association, any individual possessing, directly or 
indirectly, the power to direct or cause the direction of the management 
and policies of the corporation, partnership, or association) is not a 
person to whom distribution of explosive materials is prohibited under 
the Act;
    (iii) The applicant has not willfully violated any provisions of the 
Act or this part;
    (iv) The applicant has not knowingly withheld information or has not 
made any false or fictitious statement intended or likely to deceive, in 
connection with his application;
    (v) The applicant has in a State, premises from which he conducts 
business or operations subject to license or permit under the Act or 
from which he intends to conduct business or operations;
    (vi) The applicant has storage for the class (as described in Sec. 
555.202) of explosive materials described on the application, unless he 
establishes to the satisfaction of the Chief, Firearms and Explosives 
Licensing Center, that the business or operations to be conducted will 
not require the storage of explosive materials;
    (vii) The applicant has certified in writing that he is familiar 
with and understands all published State laws and local ordinances 
relating to explosive materials for the location in which he intends to 
do business; and
    (viii) The applicant for a license has submitted the certificate 
required by section 21 of the Federal Water Pollution Control Act, as 
amended (33 U.S.C. 1341).
    (3) The Chief, Firearms and Explosives Licensing Center, will 
approve or the regional director (compliance) will deny any application 
for a license or permit within the 45-day period beginning on the date a 
properly executed application was received. However, when an applicant 
for license or permit renewal is a person who is, under the provisions 
of Sec. 555.83 or Sec. 555.142, conducting business or operations 
under a previously issued license or permit, action regarding the 
application will be held in abeyance pending the completion of the 
proceedings against the applicant's existing license or permit, or 
renewal application, or final action by the Director on an application 
for relief submitted under Sec. 555.142, as the case may be.
    (4) The license or permit and one copy will be forwarded to the 
applicant, except that in the case of a user-limited permit, the 
original only will be issued.
    (5) Each license or permit will bear a serial number and this number 
may be assigned to the licensee or permittee to whom issued for as long 
as he maintains continuity of renewal in the same region.
    (b) Issuance of license or permit on and after May 24, 2003. (1) The 
Chief, Firearms and Explosives Licensing Center, will issue a license or 
permit if:

[[Page 134]]

    (i) A properly executed application for the license or permit is 
received; and
    (ii) Through further inquiry or investigation, or otherwise, it is 
found that the applicant is entitled to the license or permit.
    (2) The Chief, Firearms and Explosives Licensing Center, will 
approve a properly executed application for a license or permit, if:
    (i) The applicant (or, if the applicant is a corporation, 
partnership, or association, each responsible person with respect to the 
applicant) is not a person described in any paragraph of section 842(i) 
of the Act;
    (ii) The applicant has not willfully violated any provisions of the 
Act or this part;
    (iii) The applicant has not knowingly withheld information or has 
not made any false or fictitious statement intended or likely to 
deceive, in connection with his application;
    (iv) The applicant has in a State, premises from which he conducts 
business or operations subject to license or permit under the Act or 
from which he intends to conduct business or operations;
    (v) The applicant has storage for the class (as described in Sec. 
555.202) of explosive materials described on the application;
    (vi) The applicant has certified in writing that he is familiar with 
and understands all published State laws and local ordinances relating 
to explosive materials for the location in which he intends to do 
business;
    (vii) The applicant for a license has submitted the certificate 
required by section 21 of the Federal Water Pollution Control Act, as 
amended (33 U.S.C. 1341);
    (viii) None of the employees of the applicant who will be authorized 
by the applicant to possess explosive materials is a person described in 
any paragraph of section 842(i) of the Act; and
    (ix) In the case of an applicant for a limited permit, the applicant 
has certified in writing that the applicant will not receive explosive 
materials on more than 6 separate occasions during the 12-month period 
for which the limited permit is valid.
    (3) The Chief, Firearms and Explosives Licensing Center, will 
approve or the regional director (compliance) will deny any application 
for a license or permit within the 90-day period beginning on the date a 
properly executed application was received. However, when an applicant 
for license or permit renewal is a person who is, under the provisions 
of Sec. 555.83 or Sec. 555.142, conducting business or operations 
under a previously issued license or permit, action regarding the 
application will be held in abeyance pending the completion of the 
proceedings against the applicant's existing license or permit, or 
renewal application, or final action by the Director on an application 
for relief submitted under Sec. 555.142, as the case may be.
    (4) The license or permit and one copy will be forwarded to the 
applicant, except that in the case of a user-limited permit, the 
original only will be issued.
    (5) Each license or permit will bear a serial number and this number 
may be assigned to the licensee or permittee to whom issued for as long 
as he maintains continuity of renewal in the same region.

(Approved by the Office of Management and Budget under control number 
1140-0082)

[ATF No. 1, 68 FR 13785, Mar. 20, 2003]



Sec. 555.50  Correction of error on license or permit.

    (a) Upon receipt of a license or permit issued under this part, each 
licensee or permittee shall examine the license or permit to insure that 
the information on it is accurate. If the license or permit is 
incorrect, the licensee or permittee shall return the license or permit 
to the Chief, Firearms and Explosives Licensing Center, with a statement 
showing the nature of the error. The Chief, Firearms and Explosives 
Licensing Center, shall correct the error, if the error was made in his 
office, and return the license or permit. However, if the error resulted 
from information contained in the licensee's or permittee's application 
for the license or permit, the Chief, Firearms and Explosives Licensing 
Center, shall require the licensee or permittee to file an amended 
application setting forth

[[Page 135]]

the correct information and a statement explaining the error contained 
in the application. Upon receipt of the amended application and a 
satisfactory explanation of the error, the Chief, Firearms and 
Explosives Licensing Center, shall make the correction on the license or 
permit and return it to the licensee or permittee.
    (b) When the Chief, Firearms and Explosives Licensing Center, finds 
through any means other than notice from the licensee or permittee that 
an incorrect license or permit has been issued, (1) the Chief, Firearms 
and Explosives Licensing Center, may require the holder of the incorrect 
license or permit to return the license or permit for correction, and 
(2) if the error resulted from information contained in the licensee's 
or permittee's application for the license or permit, the Chief, 
Firearms and Explosives Licensing Center, shall require the licensee or 
permittee to file an amended application setting forth the correct 
information, and a statement satisfactorily explaining the error 
contained in the application. The Chief, Firearms and Explosives 
Licensing Center, then shall make the correction on the license or 
permit and return it to the licensee or permittee.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.51  Duration of license or permit.

    (a) Prior to May 24, 2003. An original license or permit is issued 
for a period of three years. A renewal license or permit is issued for a 
period of three years. However, a user-limited permit is valid only for 
a single purchase transaction.
    (b) On and after May 24, 2003. (1) An original license or user 
permit is issued for a period of three years. A renewal license or user 
permit is also issued for a period of three years. However, a user-
limited permit is valid only for a single purchase transaction.
    (2) A limited permit is issued for a period of one year. A renewal 
limited permit is also issued for a period of one year.

[ATF No. 1, 68 FR 13786, Mar. 20, 2003]



Sec. 555.52  Limitations on license or permit.

    (a) The license covers the business and class (as described in Sec. 
555.202) of explosive materials specified in the license at the 
licensee's business premises (see Sec. 555.41(b)).
    (b) The permit is valid with respect to the type of operations and 
class (as described in Sec. 555.202) of explosive materials specified 
in the permit.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8376, Feb. 25, 1997]



Sec. 555.53  License and permit not transferable.

    Licenses and permits issued under this part are not transferable to 
another person. In the event of the lease, sale, or other transfer of 
the business or operations covered by the license or permit, the 
successor must obtain the license or permit required by this part before 
commencing business or operations. However, for rules on right of 
succession, see Sec. 555.59.



Sec. 555.54  Change of address.

    (a) During the term of a license or permit, a licensee or permittee 
may move his business or operations to a new address at which he intends 
to regularly carry on his business or operations, without procuring a 
new license or permit. However, in every case, the licensee or permittee 
shall--
    (1) Give notification of the new location of the business or 
operations to the Chief, Firearms and Explosives Licensing Center at 
least 10 days before the move; and
    (2) Submit the license or permit to the Chief, Firearms and 
Explosives Licensing Center. The Chief, Firearms and Explosives 
Licensing Center will issue an amended license or permit, which will 
contain the new address (and new license or permit number, if any).
    (b) Licensees and permittees whose mailing address will change must 
notify the Chief, Firearms and Explosives

[[Page 136]]

Licensing Center, at least 10 days before the change.

(Paragraph (b) approved by the Office of Management and Budget under 
control number 1140-0080)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989; ATF No. 1, 68 FR 13786, Mar. 20, 2003]



Sec. 555.55  Change in class of explosive materials.

    A licensee or permittee who intends to change the class of explosive 
materials described in his license or permit from a lower to a higher 
classification (see Sec. 555.202) shall file an application on ATF F 
5400.13 or on ATF F 5400.16 with the Chief, Firearms and Explosives 
Licensing Center, for an amended license or permit. If the change in 
class of explosive materials would require a change in magazines, the 
amended application must include a description of the type of 
construction as prescribed in this part. Business or operations with 
respect to the new class of explosive materials may not be commenced 
before issuance of the amended license or amended permit. Upon receipt 
of the amended license or amended permit, the licensee or permittee 
shall submit his superseded license or superseded permit and any copies 
furnished with the license or permit to the Chief, Firearms and 
Explosives Licensing Center.

[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-387, 62 FR 8376, Feb. 25, 1997]



Sec. 555.56  Change in trade name.

    A licensee or permittee continuing to conduct business or operations 
at the location shown on his license or permit is not required to obtain 
a new license or permit by reason of a mere change in trade name under 
which he conducts his business or operations. However, the licensee or 
permittee shall furnish his license or permit and any copies furnished 
with the license or permit for endorsement of the change to the Chief, 
Firearms and Explosives Licensing Center, within 30 days from the date 
the licensee or permittee begins his business or operations under the 
new trade name.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.57  Change of control, change in responsible persons, and 
change of employees.

    (a) In the case of a corporation or association holding a license or 
permit under this part, if actual or legal control of the corporation or 
association changes, directly or indirectly, whether by reason of change 
in stock ownership or control (in the corporation holding a license or 
permit or in any other corporation), by operation of law, or in any 
other manner, the licensee or permittee shall, within 30 days of the 
change, give written notification executed under the penalties of 
perjury, to the Chief, Firearms and Explosives Licensing Center. Upon 
expiration of the license or permit, the corporation or association 
shall file an ATF F 5400.13 or an ATF F 5400.16 as required by Sec. 
555.45, and pay the fee prescribed in Sec. 555.42(b) or Sec. 
555.43(b).
    (b) For all licenses or permits issued on and after May 24, 2003, 
each person holding the license or permit must report to the Chief, 
Firearms and Explosives Licensing Center, any change in responsible 
persons or employees authorized to possess explosive materials. Such 
report must be submitted within 30 days of the change and must include 
appropriate identifying information for each responsible person. Reports 
relating to newly hired employees authorized to possess explosive 
materials must be submitted on ATF F 5400.28 for each employee.
    (c) Upon receipt of a report, the Chief, Firearms and Explosives 
Licensing Center, will conduct a background check, if appropriate, in 
accordance with Sec. 555.33.
    (d) The reports required by paragraph (b) of this section must be 
retained as part of a licensee's or permittee's permanent records for 
the period specified in Sec. 555.121.

(Approved by the Office of Management and Budget under control number 
1140-0074)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989; ATF No. 1, 68 FR 13786, Mar. 20, 2003]

[[Page 137]]



Sec. 555.58  Continuing partnerships.

    Where, under the laws of the particular State, the partnership is 
not terminated on death or insolvency of a partner, but continues until 
the winding up of the partnership affairs is completed, and the 
surviving partner has the exclusive right to the control and possession 
of the partnership assets for the purpose of liquidation and settlement, 
the surviving partner may continue to conduct the business or operations 
under the license or permit of the partnership. If the surviving partner 
acquires the business or operations on completion of settlement of the 
partnership, he shall obtain a license or permit in his own name from 
the date of acquisition, as provided in Sec. 555.45. The rule set forth 
in this section will also apply where there is more than one surviving 
partner.



Sec. 555.59  Right of succession by certain persons.

    (a) Certain persons other than the licensee or permittee may secure 
the right to carry on the same explosive materials business or 
operations at the same business premises for the remainder of the term 
of license or permit. These persons are:
    (1) The surviving spouse or child, or executor, administrator, or 
other legal representative of a deceased licensee or permittee; and
    (2) A receiver or trustee in bankruptcy, or an assignee for benefit 
of creditors.
    (b) In order to secure the right of succession, the person or 
persons continuing the business or operations shall submit the license 
or permit and all copies furnished with the license or permit for 
endorsement of the succession to the Chief, Firearms and Explosives 
Licensing Center, within 30 days from the date on which the successor 
begins to carry on the business or operations.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.60  Certain continuances of business or operations.

    A licensee or permittee who furnishes his license or permit to the 
Chief, Firearms and Explosives Licensing Center, for correction, 
amendment, or endorsement, as provided in this subpart, may continue his 
business or operations while awaiting its return.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.61  Discontinuance of business or operations.

    Where an explosive materials business or operations is either 
discontinued or succeeded by a new owner, the owner of the business or 
operations discontinued or succeeded shall, within 30 days, furnish 
notification of the discontinuance or succession and submit his license 
or permit and any copies furnished with the license or permit to the 
Chief, Firearms and Explosives Licensing Center. (See also Sec. 
555.128.)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.62  State or other law.

    A license or permit issued under this part confers no right or 
privilege to conduct business or operations, including storage, contrary 
to State or other law. The holder of a license or permit issued under 
this part is not, by reason of the rights and privileges granted by that 
license or permit, immune from punishment for conducting an explosive 
materials business or operations in violation of the provisions of any 
State or other law. Similarly, compliance with the provisions of any 
State or other law affords no immunity under Federal law or regulations.



Sec. 555.63  Explosives magazine changes.

    (a) General. (1) The requirements of this section are applicable to 
magazines used for other than temporary (under 24 hours) storage of 
explosives.
    (2) A magazine is considered suitable for the storage of explosives 
if the construction requirements of this part are met during the time 
explosives are stored in the magazine.
    (3) A magazine is considered suitable for the storage of explosives 
if positioned in accordance with the applicable table of distances as 
specified in this part during the time explosives are stored in the 
magazine.

[[Page 138]]

    (4) For the purposes of this section, notification of the regional 
director (compliance) may be by telephone or in writing. However, if 
notification of the regional director (compliance) is in writing it must 
be at least three business days in advance of making changes in 
construction to an existing magazine or constructing a new magazine, and 
at least five business days in advance of using any reconstructed 
magazine or added magazine for the storage of explosives.
    (b) Exception. Mobile or portable type 5 magazines are exempt from 
the requirements of paragraphs (c) and (d) of this section, but must 
otherwise be in compliance with paragraphs (a) (2) and (3) of this 
section during the time explosives are stored in such magazines.
    (c) Changes in magazine construction. A licensee or permittee who 
intends to make changes in construction of an existing magazine shall 
notify the regional director (compliance) describing the proposed 
changes prior to making any changes. Unless otherwise advised by the 
regional director (compliance), changes in construction may commence 
after explosives are removed from the magazine. Explosives may not be 
stored in a reconstructed magazine before the regional director 
(compliance) has been notified in accordance with paragraph (a)(4) of 
this section that the changes have been completed.
    (d) Magazines acquired or constructed after permit or license is 
issued. A licensee or permittee who intends to construct or acquire 
additional magazines shall notify the regional director (compliance) in 
accordance with paragraph (a)(4) of this section describing the 
additional magazines and the class and quantity of explosives to be 
stored in the magazine. Unless otherwise advised by the regional 
director (compliance), additional magazines may be constructed, or 
acquired magazines may be used for the storage of explosives. Explosives 
must not be stored in a magazine under construction. The regional 
director (compliance) must be notified that construction has been 
completed.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45002, Aug. 24, 1998]



                Subpart E_License and Permit Proceedings



Sec. 555.71  Opportunity for compliance.

    Except in cases of willfulness or those in which the public interest 
requires otherwise, and the regional director (compliance) so alleges in 
the notice of denial of an application or revocation of a license or 
permit, no license or permit will be revoked or renewal application 
denied without first calling to the attention of the licensee or 
permittee the reasons for the contemplated action and affording him an 
opportunity to demonstrate or achieve compliance with all lawful 
requirements and to submit facts, arguments, or proposals of adjustment. 
The notice of contemplated action, ATF F 5400.12, will afford the 
licensee or permittee 15 days from the date of receipt of the notice to 
respond. If no response is received within the 15 days, or if after 
consideration of relevant matters presented by the licensee or 
permittee, the regional director (compliance) finds that the licensee or 
permittee is not likely to abide by the law and regulations, he will 
proceed as provided in Sec. 555.74.

[T.D. ATF-87, 46 FR 40384, Aug. 7 1981, as amended by T.D. ATF-446, 66 
FR 16602, Mar. 27, 2001]



Sec. 555.72  Denial of initial application.

    Whenever the regional director (compliance) has reason to believe 
that an applicant for an original license or permit is not eligible to 
receive a license or permit under the provisions of Sec. 555.49, he 
shall issue a notice of denial on ATF F 5400.11. The notice will set 
forth the matters of fact and law relied upon in determining that the 
application should be denied, and will afford the applicant 15 days from 
the date of receipt of the notice in which to request a hearing to 
review the denial. If no request for a hearing is filed within that 
time, a copy of the application, marked ``Disapproved'', will be 
returned to the applicant.



Sec. 555.73  Hearing after initial application is denied.

    If the applicant for an original license or permit desires a 
hearing, he

[[Page 139]]

shall file a request with the regional director (compliance) within 15 
days after receipt of the notice of denial. The request should include a 
statement of the reasons for a hearing. On receipt of the request, the 
regional director (compliance) shall refer the matter to an 
administrative law judge who shall set a time and place (see Sec. 
555.77) for a hearing and shall serve notice of the hearing upon the 
applicant and the regional director (compliance) at least 10 days in 
advance of the hearing date. The hearing will be conducted in accordance 
with the hearing procedures prescribed in part 71 of this chapter (see 
Sec. 555.82). Within a reasonable time after the conclusion of the 
hearing, and as expeditiously as possible, the administrative law judge 
shall render his recommended decision. He shall certify to the complete 
record of the proceedings before him and shall immediately forward the 
complete certified record, together with four copies of his recommended 
decision, to the regional director (compliance) for decision.



Sec. 555.74  Denial of renewal application or revocation of license 
or permit.

    If following the opportunity for compliance under Sec. 555.71, or 
without opportunity for compliance under Sec. 555.71, as circumstances 
warrant, the regional director (compliance) finds that the licensee or 
permittee is not likely to comply with the law or regulations or is 
otherwise not eligible to continue operations authorized under his 
license or permit, the regional director (compliance) shall issue a 
notice of denial of the renewal application or revocation of the license 
or permit, ATF F 5400.11 or ATF F 5400.10, as appropriate. In either 
case, the notice will set forth the matters of fact constituting the 
violations specified, dates, places, and the sections of law and 
regulations violated. The notice will, in the case of revocation of a 
license or permit, specify the date on which the action is effective, 
which date will be on or after the date the notice is served on the 
licensee or permittee. The notice will also advise the licensee or 
permittee that he may, within 15 days after receipt of the notice, 
request a hearing and, if applicable, a stay of the effective date of 
the revocation of his license or permit.



Sec. 555.75  Hearing after denial of renewal application or revocation 
of license or permit.

    If a licensee or permittee whose renewal application has been denied 
or whose license or permit has been revoked desires a hearing, he shall 
file a request for a hearing with the regional director (compliance). In 
the case of the revocation of a license or permit, he may include a 
request for a stay of the effective date of the revocation. On receipt 
of the request the regional director (compliance) shall advise the 
licensee or permittee whether the stay of the effective date of the 
revocation is granted. If the stay of the effective date of the 
revocation is granted, the regional director (compliance) shall refer 
the matter to an administrative law judge who shall set a time and place 
(see Sec. 555.77) for a hearing and shall serve notice of the hearing 
upon the licensee or permittee and the regional director (compliance) at 
least 10 days in advance of the hearing date. If the stay of the 
effective date of the revocation is denied, the licensee or permittee 
may request an immediate hearing. In this event, the regional director 
(compliance) shall immediately refer the matter to an administrative law 
judge who shall set a date and place for a hearing, which date shall be 
no later than 10 days from the date the licensee or permittee requested 
an immediate hearing. The hearing will be held in accordance with the 
applicable provisions of part 71 of this chapter. Within a reasonable 
time after the conclusion of the hearing, and as expeditiously as 
possible, the administrative law judge shall render his decision. He 
shall certify to the complete record of the proceeding before him and 
shall immediately forward the complete certified record, together with 
two copies of his decision, to the regional director (compliance), serve 
one copy of his decision on the licensee or permittee or his counsel, 
and transmit a copy to the attorney for the Government.

[[Page 140]]



Sec. 555.76  Action by regional director (compliance).

    (a) Initial application proceedings. If, upon receipt of the record 
and the recommended decision of the administrative law judge, the 
regional director (compliance) decides that the license or permit should 
be issued, the regional director (compliance) shall cause the 
application to be approved, briefly stating, for the record, his 
reasons. If he contemplates that the denial should stand, he shall serve 
a copy of the administrative law judge's recommended decision on the 
applicant, informing the applicant of his contemplated action and 
affording the applicant not more than 10 days in which to submit 
proposed findings and conclusions or exceptions to the recommended 
decision with supporting reasons. If the regional director (compliance), 
after consideration of the record of the hearing and of any proposed 
findings, conclusions, or exceptions filed with him by the applicant, 
approves the findings, conclusions and recommended decision of the 
administrative law judge, the regional director (compliance) shall cause 
the license or permit to be issued or disapproved the application 
accordingly. If he disapproves the findings, conclusions, and 
recommendation of the administrative law judge, in whole or in part, he 
shall by order make such findings and conclusions as in his opinion are 
warranted by the law and the facts in the record. Any decision of the 
regional director (compliance) ordering the disapproval of an initial 
application for a license or permit shall state the findings and 
conclusions upon which it is based, including his ruling upon each 
proposed finding, conclusion, and exception to the administrative law 
judge's recommended decision, together with a statement of his findings 
and conclusions, and reasons or basis for his findings and conclusions, 
upon all material issues of fact, law or discretion presented on the 
record. A signed duplicate original of the decision will be served upon 
the applicant and the original copy containing certificate of service 
will be placed in the official record of the proceedings. If the 
decision of the regional director (compliance) is in favor of the 
applicant, he shall issue the license or permit, to be effective on 
issuance.
    (b) Renewal application and revocation proceedings. Upon receipt of 
the complete certified records of the hearing, the regional director 
(compliance) shall enter an order confirming the revocation of the 
license or permit, or disapproving the application, in accordance with 
the administrative law judge's findings and decision, unless he 
disagrees with the findings and decision. A signed duplicate original of 
the order, ATF F 5400.9, will be served upon the licensee or permittee 
and the original copy containing certificate of service will be placed 
in the official record of the proceedings. If the regional director 
(compliance) disagrees with the findings and decision of the 
administrative law judge, he shall file a petition with the Director for 
review of the findings and decision, as provided in Sec. 555.79. In 
either case, if the renewal application denial is sustained, a copy of 
the application marked ``Disapproved'' will be returned to the 
applicant. If the renewal application denial is reversed, a license or 
permit will be issued to become effective on expiration of the license 
or permit being renewed, or on the date of issuance, whichever is later. 
If the proceedings involve the revocation of a license or permit which 
expired before a decision is in favor of the licensee or permittee, the 
regional director (compliance) shall:
    (1) If renewal application was timely filed and a stay of the 
effective date of the revocation was granted, cause to be issued a 
license or permit effective on the date of issuance;
    (2) If renewal application was not timely filed but a stay of the 
effective date of the revocation had been granted, request that a 
renewal application be filed and, following that, cause to be issued a 
license or permit to be effective on issuance; or
    (3) If a stay of the effective date of the revocation had not been 
granted, request that an application be filed as provided in Sec. 
555.45, and process it in the same manner as for an application for an 
original license or permit.
    (c) Curtailment of stay of revocation effective date. If, after 
approval of a request for a stay of the effective date of

[[Page 141]]

an order revoking a license or permit but before actions are completed 
under this subpart, the regional director (compliance) finds that it is 
contrary to the public interest for the licensee or permittee to 
continue the operations or activities covered by his license or permit, 
the regional director (compliance) may issue a notice of withdrawal of 
the approval, effective on the date of issuance. Notice of withdrawal 
will be served upon the licensee or permittee in the manner provided in 
Sec. 555.81.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.77  Designated place of hearing.

    The designated place of hearing set as provided in Sec. 555.73 or 
Sec. 555.75, will be at the location convenient to the aggrieved party.



Sec. 555.78  Representation at a hearing.

    An applicant, licensee, or permittee may be represented by an 
attorney, certified public accountant, or other person recognized to 
practice before the Bureau of Alcohol, Tobacco and Firearms as provided 
in 31 CFR Part 8, if he has otherwise complied with the applicable 
requirements of of 26 CFR 601.521 through 601.527. The regional director 
(compliance) shall be represented in proceedings under Sec. Sec. 555.73 
and 555.75 by an attorney in the office of the chief counsel or regional 
counsel who is authorized to execute and file motions, briefs, and other 
papers in the proceedings, on behalf of the regional director 
(compliance), in his own name as ``Attorney for the Government''.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-92, 46 
FR 46916, Sept. 23, 1981]



Sec. 555.79  Appeal on petition to the Director.

    An appeal to the Director is not required prior to filing an appeal 
with the U.S. Court of Appeals for judicial review. An appeal may be 
taken by the applicant, licensee, or permittee to the Director from a 
decision resulting from a hearing under Sec. 555.73 or Sec. 555.75. An 
appeal may also be taken by a regional director (compliance) from a 
decision resulting from a hearing under Sec. 555.75 as provided in 
Sec. 555.76(b). The appeal shall be taken by filing a petition for 
review on appeal with the Director within 15 days of the service of an 
administrative law judge's decision or an order. The petition will set 
forth facts tending to show (a) action of an arbitrary nature, (b) 
action without reasonable warrant in fact, or (c) action contrary to law 
and regulations. A copy of the petition will be filed with the regional 
director (compliance) or served on the applicant, licensee, or 
permittee, as the case may be. In the event of appeal, the regional 
director (compliance) shall immediately forward the complete original 
record, by certified mail, to the Director for his consideration, 
review, and disposition as provided in subpart I of part 71 of this 
chapter. When, on appeal, the Director affirms the initial decision of 
the regional director (compliance) or the administrative law judge, as 
the case may be, the initial decision will be final.



Sec. 555.80  Court review.

    An applicant, licensee, or permittee may, within 60 days after 
receipt of the decision of the administrative law judge or the final 
order of the regional director (compliance) or the Director, file a 
petition for a judicial review of the decision, with the U.S. Court of 
Appeals for the district in which he resides or has his principal place 
of business. The Director, upon notification that a petition has been 
filed, shall have prepared a complete transcript of the record of the 
proceedings. The regional director (compliance) or the Director, as the 
case may be, shall certify to the correctness of the transcript of the 
record, forward one copy to the attorney for the Government in the 
review of the case, and file the original record of the proceedings with 
the original certificate in the U.S. Court of Appeals.



Sec. 555.81  Service on applicant, licensee, or permittee.

    All notices and other formal documents required to be served on an 
applicant, licensee, or permittee under this subpart will be served by 
certified mail or by personal delivery. Where service is by personal 
delivery, the

[[Page 142]]

signed duplicate original copy of the formal document will be delivered 
to the applicant, licensee, or permittee, or, in the case of a 
corporation, partnership, or association, by delivering it to an 
officer, manager, or general agent, or to its attorney of record.



Sec. 555.82  Provisions of part 200 made applicable.

    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.



Sec. 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



Sec. 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.

[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]



Sec. 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. (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 Sec. 555.103, and to 
nonlicensees or to nonpermittees in accordance with Sec. 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 Sec. 555.103 and Sec. 555.105.

[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998, as amended by ATF No. 1, 68 
FR 13787, Mar. 20, 2003]



Sec. 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.

[[Page 143]]

(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 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.

    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 license 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,

[[Page 144]]

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 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 Sec. 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 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 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 Sec. 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

[[Page 145]]

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 Sec. 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 Sec. 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]



Sec. 555.104  Certified copy of license or permit.

    Except as provided in Sec. 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 Sec. 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 to the Chief, Firearms and 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, Firearms and 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 and Firearms.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 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 Sec. 555.126. Disposition of ATF F 
5400.4 will be made in accordance with Sec. 555.126.

[[Page 146]]

    (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 
purchase explosive materials in a contiguous State and the purchaser and 
the licensee have, prior to the distribution of the explosive materials, 
complied with all the requirements of paragraphs (a)(2), (a)(5), and 
(a)(6) of this section applicable to intrastate transactions occurring 
on the licensee's business premises.
    (4) A permittee may dispose of surplus stocks of explosive materials 
to a nonlicensee or nonpermittee if the nonlicensee or nonpermittee is a 
resident of the same State in which the permittee's business premises or 
operations are located, or is a resident of a State contiguous to the 
State in which the permittee's place of business or operations are 
located, and if the requirements of paragraphs (a)(2), (a)(3), (a)(5), 
and (a)(6) of this section are fully met.
    (5) A licensed importer, licensed manufacturer, or licensed dealer 
selling or otherwise distributing explosive materials to a business 
entity must verify the identity of the representative or agent of the 
business entity who is authorized to order explosive materials on behalf 
of the business entity. Each business entity ordering explosive 
materials must furnish the distributing licensee prior to or with the 
first order of explosive materials a current certified list of the names 
of representatives or agents authorized to order explosive materials on 
behalf of the business entity. The business entity ordering explosive 
materials is responsible for keeping the certified list current. A 
licensee may not distribute explosive materials to a business entity on 
the order of a person whose name does not appear on the certified list.
    (6) Where the 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 
nonlicensee or nonpermittee, or to an employee of a common or contract 
carrier transporting explosive materials to a nonlicensee or 
nonpermittee, the distributor delivering explosive materials must obtain 
an executed ATF F 5400.8 from the employee before releasing the 
explosive materials. The ATF F 5400.8 must contain all of the 
information required on the form and by this part. (See examples in 
Sec. 555.103(a)).
    (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 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).
    (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 
Sec. 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

[[Page 147]]

the holder of the limited permit are located on no more than 6 separate 
occasions 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 
Sec. 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 Sec. 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.
    (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 Sec. 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 Sec. 
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 Sec. 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 Sec. 
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 Sec. 555.121.

[[Page 148]]

    (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 
Sec. 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 Sec. 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]



Sec. 555.106  Certain prohibited distributions.

    (a) A licensee or permittee may not distribute explosive materials 
to any person except--
    (1) A licensee;
    (2) A holder of a user permit; or
    (3) A holder of a limited permit who is a resident of the State 
where distribution is made and in which the premises of the transferor 
are located.
    (b) A licensee shall not distribute any explosive materials to any 
person:
    (1) Who the licensee knows is less than 21 years of age;
    (2) In any State where the purchase, possession, or use by a person 
of explosive materials would be in violation of any State law or any 
published ordinance applicable at the place of distribution;
    (3) Who the licensee has reason to believe intends to transport the 
explosive materials into a State where the purchase, possession, or use 
of explosive materials is prohibited or which does not permit its 
residents to transport or ship explosive materials into the State or to 
receive explosive materials in the State; or
    (4) Who the licensee has reasonable cause to believe intends to use 
the explosive materials for other than a lawful purpose.
    (c) A licensee shall not distribute any explosive materials to any 
person knowing or having reason to believe that the person:
    (1) Is, except as provided under Sec. 555.142 (d) and (e), under 
indictment or information for, or was convicted in any court of, a crime 
punishable by imprisonment for a term exceeding 1 year;
    (2) Is a fugitive from justice;
    (3) Is an unlawful user of 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);

[[Page 149]]

    (4) Was adjudicated as a mental defective or was committed to a 
mental institution;
    (5) Is an alien, other than an alien who--
    (i) Is lawfully admitted for permanent residence (as that term is 
defined in section 101(a)(20) of the Immigration and Nationality Act (8 
U.S.C. 1101));
    (ii) Is in lawful nonimmigrant status, is a refugee admitted under 
section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or 
is in asylum status under section 208 of the Immigration and Nationality 
Act (8 U.S.C. 1158), and--
    (A) Is a foreign law enforcement officer of a friendly foreign 
government, as determined by the Attorney General in consultation with 
the Secretary of State, entering the United States on official law 
enforcement business, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of this official law 
enforcement business;
    (B) Is a person having the power to direct or cause the direction of 
the management and policies of a corporation, partnership, or 
association licensed pursuant to section 843(a), and the shipping, 
transporting, possession, or receipt of explosive materials is in 
furtherance of such power;
    (C) Is a member of a North Atlantic Treaty Organization (NATO) or 
other friendly foreign military force, as determined by the Attorney 
General in consultation with the Secretary of Defense, (whether or not 
admitted in a nonimmigrant status) who is present in the United States 
under military orders for training or other military purpose authorized 
by the United States, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of the military 
purpose; or
    (D) Is lawfully present in the United States in cooperation with the 
Director of Central Intelligence, and the shipment, transportation, 
receipt, or possession of the explosive materials is in furtherance of 
such cooperation;
    (6) Has been discharged from the armed forces under dishonorable 
conditions; or
    (7) Having been a citizen of the United States, has renounced 
citizenship.
    (d) The provisions of this section do not apply to the purchase of 
commercially manufactured black powder in quantities not to exceed 50 
pounds, intended to be used solely for sporting, recreational, or 
cultural purposes in antique firearms or in antique devices, if the 
requirements of Sec. 555.105(a)(7) or (b)(7) are fully met.

[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 13790, Mar. 20, 2003]



Sec. 555.107  Record of transactions.

    Each licensee and permittee shall keep records of explosive 
materials as required by subpart G of this part.



Sec. 555.108  Importation.

    (a) Explosive materials imported or brought into the United States 
by a licensed importer or holder of a user permit may be released from 
customs custody to the licensed importer or holder of a user permit upon 
proof of his status as a licensed importer or holder of a user permit. 
Proof of status must be made by the licensed importer or holder of a 
user permit furnishing to the customs officer a certified copy of his 
license or permit (see Sec. 555.103).
    (b) A nonlicensee or nonpermittee may import or bring into the 
United States commercially manufactured black powder in quantities not 
to exceed 50 pounds. Upon submitting to the customs officer completed 
ATF F 5400.3, certifying that the black powder is intended to be used 
solely for sporting, recreational, or cultural purposes in antique 
firearms or in antique devices, black powder may be released from 
customs custody. The disposition of the executed ATF F 5400.3 will be in 
accordance with the instructions on the form.
    (c) The provisions of this section are in addition to, and are not 
in lieu of, any applicable requirement under 27 CFR Part 447.

[[Page 150]]

    (d) For additional requirements relating to the importation of 
plastic explosives into the United States on or after April 24, 1997, 
see Sec. 555.183.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8376, Feb. 25, 1997; ATF No. 1, 68 FR 13790, Mar. 20, 2003]



Sec. 555.109  Identification of explosive materials.

    (a) Each licensed manufacturer of explosive materials shall legibly 
identify by marking all explosive materials he manufactures for sale or 
distribution. The marks required by this section must identify the 
manufacturer and the location, date, and shift of manufacture. The 
licensed manufacturer shall place on each cartridge, bag, or other 
immediate container of explosive materials manufactured for sale or 
distribution the required mark which shall also be placed on the outside 
container, if any, used for their packaging.
    (b) Exceptions. (1) Licensed manufacturers of blasting caps are only 
required to place the identification marks prescribed in paragraph (a) 
on the containers used for the packaging of blasting caps.
    (2) The Director may authorize other means of identifying explosive 
materials upon receipt of a letter application from the licensed 
manufacturer showing that other identification is reasonable and will 
not hinder the effective administration of this part.
    (3) The Director may authorize the use of other means of 
identification on fireworks instead of marks prescribed in paragraph (a) 
of this section.



Sec. 555.110  Furnishing of samples (Effective on and after January 
24, 2003).

    (a) In general. Licensed manufacturers and licensed importers and 
persons who manufacture or import explosive materials or ammonium 
nitrate must, when required by letter issued by the Director, furnish--
    (1) Samples of such explosive materials or ammonium nitrate;
    (2) Information on chemical composition of those products; and
    (3) Any other information that the Director determines is relevant 
to the identification of the explosive materials or to identification of 
the ammonium nitrate.
    (b) Reimbursement. The Director will reimburse the fair market value 
of samples furnished pursuant to paragraph (a) of this section, as well 
as reasonable costs of shipment.

(Approved by the Office of Management and Budget under control number 
1140-0073)

[ATF No. 1, 68 FR 13790, Mar. 20, 2003]



                      Subpart G_Records and Reports



Sec. 555.121  General.

    (a)(1) Licensees and permittees shall keep records pertaining to 
explosive materials in permanent form (i.e., commercial invoices, record 
books) and in the manner required in this subpart.
    (2) Licensees and permittees shall keep records required by this 
part on the business premises for five years from the date a transaction 
occurs or until discontinuance of business or operations by the licensee 
or permittee. (See also Sec. 555.128 for discontinuance of business or 
operations.)
    (b) ATF officers may enter the premises of any licensee or holder of 
a user permit for the purpose of examining or inspecting any record or 
document required by or obtained under this part (see Sec. 555.24). 
Section 843(f) of the Act requires licensees and holders of user permits 
to make all required records available for examination or inspection at 
all reasonable times. Section 843(f) of the Act also requires licensees 
and permittees (including holders of limited permits) to submit all 
reports and information relating to all required records and their 
contents, as the regulations in this part prescribe.
    (c) Each licensee and permittee shall maintain all records of 
importation, production, shipment, receipt, sale, or other disposition, 
whether temporary or permanent, of explosive materials as the 
regulations in this part prescribe. Sections 842(f) and 842(g) of the 
Act make it unlawful for any licensee or permittee knowingly to make any 
false entry in, or fail to make entry in, any record required to be kept 
under the Act and the regulations in this part.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; ATF No. 1, 68 FR 13790, Mar. 20, 2003]

[[Page 151]]



Sec. 555.122  Records maintained by licensed importers.

    (a) Each licensed importer shall take true and accurate physical 
inventories which will include all explosive materials on hand required 
to be accounted for in the records kept under this part. The licensed 
importer shall take a special inventory
    (1) At the time of commencing business, which is the effective date 
of the license issued upon original qualification under this part;
    (2) At the time of changing the location of his business to another 
region;
    (3) At the time of discontinuing business; and
    (4) At any time the regional director (compliance) may in writing 
require. Each special inventory is to be prepared in duplicate, the 
original of which is submitted to the regional director (compliance), 
and the duplicate retained by the licensed importer. If a special 
inventory specified by paragraphs (a) (1) through (4) of this section 
has not been taken during the calendar year, at least one physical 
inventory will be taken. However, the record of the yearly inventory, 
other than a special inventory required by paragraphs (a) (1) through 
(4) of this section, will remain on file for inspection instead of being 
sent to the regional director (compliance). (See also Sec. 555.127.)
    (b) Each licensed importer shall, not later than the close of the 
next business day following the date of importation or other acquisition 
of explosive materials, enter the following information in a separate 
record:
    (1) Date of importation or other acquisition.
    (2) Name or brand name of manufacturer and country of manufacture.
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (c) Each licensed importer shall, not later than the close of the 
next business day following the date of distribution of any explosive 
materials to another licensee or a permittee, enter in a separate record 
the following information:
    (1) Date of disposition.
    (2) Name or brand name of manufacturer and country of manufacture.
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (d) The regional director (compliance) may authorize alternate 
records to be maintained by a licensed importer to record his 
distribution of explosive materials when it is shown by the licensed 
importer that alternate records will accurately and readily disclose the 
information required by paragraph (c) of this section. A licensed 
importer who proposes to use alternate records shall submit a letter 
application to the regional director (compliance) and shall describe the 
proposed alternate records and the need for them. Alternate records are 
not to be employed by the licensed importer until approval is received 
from the regional director (compliance).
    (e) Each licensed importer 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 Sec. 
555.126.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[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]



Sec. 555.123  Records maintained by licensed manufacturers.

    (a) Each licensed manufacturer shall take true and accurate physical 
inventories which will include all explosive materials on hand required 
to be accounted for in the records kept under

[[Page 152]]

this part. The licensed manufacturer shall take a special inventory
    (1) At the time of commencing business, which is the effective date 
of the license issued upon original qualification under this part;
    (2) At the time of changing the location of his premises to another 
region;
    (3) At the time of discontinuing business; and
    (4) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director 
(compliance), and the duplicate retained by the licensed manufacturer. 
If a special inventory required by paragraphs (a) (1) through (4) of 
this section has not been taken during the calendar year, at least one 
physical inventory will be taken. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs (a) (1) 
through (4) of this section, will remain on file for inspection instead 
of being sent to the regional director (compliance). (See also Sec. 
555.127.)
    (b) Each licensed manufacturer shall not later than the close of the 
next business day following the date of manufacture or other acquisition 
of explosive materials, enter the following information in a separate 
record:
    (1) Date of manufacture or other acquisition.
    (2) Manufacturer's marks of identification.
    (3) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (4) Name, brand name or description (dynamite (dyn), blasting agents 
(ba), detonators (det), display fireworks (df), etc.) and size (length 
and diameter or diameter only of display fireworks).
    (c) Each licensed manufacturer shall, not later than the close of 
the next business day following the date of distribution of any 
explosive materials to another licensee or a permittee, enter in a 
separate record the following information:
    (1) Date of disposition.
    (2) Name or brand name of manufacturer or name of importer, as 
applicable, if acquired other than by his own manufacture.
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (d) Each licensed manufacturer who manufactures explosive materials 
for his own use shall, not later than the close of the next business day 
following the date of use, enter in a separate record the following 
information:
    (1) Date of use.
    (2) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of special fireworks, etc.).
    (3) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).

Exception: A licensed manufacturer is exempt from the recordkeeping 
requirements of this subsection if the explosive materials are 
manufactured for his own use and used within a 24 hour period at the 
same site.

    (e) The regional director (compliance) may authorize alternate 
records to be maintained by a licensed manufacturer to record his 
distribution or use of explosive materials when it is shown by the 
licensed manufacturer that alternate records will accurately and readily 
disclose the information required by paragraph (c) of this section. A 
licensed manufacturer who proposes to use alternate records shall submit 
a letter application to the regional director (compliance) and shall 
describe the proposed alternate records and the need for them. Alternate 
records are not to be employed by the licensed manufacturer until 
approval is received from the regional director (compliance).
    (f) Each licensed manufacturer shall maintain separate records of 
the sales or other distribution made of explosive

[[Page 153]]

materials to nonlicensees or nonpermittees. These records are maintained 
as prescribed by Sec. 555.126.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[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]



Sec. 555.124  Records maintained by licensed dealers.

    (a) Each licensed dealer shall take true and accurate physical 
inventories which will include all explosive materials on hand required 
to be accounted for in the records kept under this part. The licensed 
dealer shall take a special inventory
    (1) At the time of commencing business, which is the effective date 
of the license issued upon original qualification under this part;
    (2) At the time of changing the location of his premises to another 
region;
    (3) At the time of discontinuing business; and
    (4) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director 
(compliance), and the duplicate retained by the licensed dealer. If a 
special inventory required by paragraphs (a) (1) through (4) of this 
section has not been taken during the calendar year, at least one 
physical inventory will be taken. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs (a) (1) 
through (4) of this section, will remain on file for inspection instead 
of being sent to the regional director (compliance). (See also Sec. 
555.127.)
    (b) Each licensed dealer shall, not later than the close of the next 
business day following the date of purchase or other acquisition of 
explosive materials (except as provided in paragraph (d) of this 
section), enter the following information in a separate record:
    (1) Date of acquisition.
    (2) Name or brand name of manufacturer and name of importer (if 
any).
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) Name, address, and license or permit number of the person from 
whom the explosive materials are received.
    (c) Each licensed dealer shall, not later than the close of the next 
business day following the date of use (if the explosives are used by 
the dealer) or the date of distribution of any explosive materials to 
another licensee or a permittee (except as provided in paragraph (d) of 
this section), enter in a separate record the following information:
    (1) Date of disposition.
    (2) Name or brand name of manufacturer and name of importer (if 
any).
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (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

[[Page 154]]

available for inspection on the licensed premises.
    (e) The regional director (compliance) 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 regional director 
(compliance) 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 regional director 
(compliance).
    (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 Sec. 
555.126.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[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]



Sec. 555.125  Records maintained by permittees.

    (a) Records maintained by permittees prior to May 24, 2003. (1) Each 
permittee 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 to another 
region;
    (iii) At the time of discontinuing business; and
    (iv) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director (compliance) 
and the duplicate retained by the permittee. If a special inventory 
required by paragraphs (a)(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. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs 
(a)(1)(i) through (iv) of this section, will remain on file for 
inspection instead of being sent to the regional director (compliance). 
(See also Sec. 555.127.)
    (2) Each permittee 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.);
    (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.
    (3) Each permittee 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 Sec. 555.124(c).
    (4) Each permittee must maintain separate records of disposition of 
surplus stocks of explosive materials to nonlicensees or nonpermittees 
as prescribed in Sec. 555.126.
    (5) The regional director (compliance) may authorize alternate 
records to be maintained by a permittee 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 regional director (compliance) 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

[[Page 155]]

from the regional director (compliance).
    (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 regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director (compliance) 
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 regional director (compliance). (See also Sec. 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.);
    (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 Sec. 
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 Sec. 555.126.
    (7) The regional director (compliance) 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 regional 
director (compliance) 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 regional director 
(compliance).

(Approved by the Office of Management and Budget under control number 
1140-0030)

[ATF No. 1, 68 FR 13790, Mar. 20, 2003]

[[Page 156]]



Sec. 555.126   Explosives transaction record for distribution of 

explosive materials prior to May 24, 2003 and Limited Permittee 
Transaction Report for 
          distribution of explosive materials on and after May 24, 2003.

    (a) Explosives transaction record for distribution of explosive 
materials prior to May 24, 2003. (1) A licensee or permittee shall not 
temporarily or permanently distribute explosive materials to any person, 
other than another licensee or permittee, unless he records the 
transaction on an explosives transaction record, ATF F 5400.4.
    (2) Before the distribution of explosive materials to a nonlicensee 
or nonpermittee who is a resident of the State in which the licensee or 
permittee maintains his business premises, or to a nonlicensee or 
nonpermittee who is not a resident of the State in which the licensee or 
permittee maintains his business premises and is acquiring explosive 
materials under Sec. 555.105(a)(3), the licensee or permittee 
distributing the explosive materials shall obtain an executed ATF F 
5400.4 from the distributee which contains all of the information 
required on the form and by the regulations in this part.
    (3) Completed ATF F 5400.4 is to be retained by the licensee or 
permittee as part of his permanent records in accordance with paragraph 
(a)(4) of this section.
    (4) Each ATF F 5400.4 is retained in numerical (by transaction 
serial number) order commencing with ``1'' and continuing in regular 
sequence. When the numbering of any series reaches ``1,000,000,'' the 
licensee or permittee may recommence the series. The recommenced series 
is to be given an alphabetical prefix or suffix. Where there is a change 
in proprietorship, or in the individual, firm, corporate name or trade 
name, the series in use at the time of the change may be continued.
    (5) The requirements of this section are in addition to any other 
recordkeeping requirement contained in this part.
    (6) A licensee or permittee may obtain, upon request, a supply of 
ATF F 5400.4 from the Director.
    (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 of the holder 
of the limited permit by examining an identification document (as 
defined in Sec. 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 Sec. 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 there is a change in proprietorship by a limited 
permittee, the forms may continue to be filed together after such 
change.

[[Page 157]]

    (5) The requirements of this section are in addition to any other 
recordkeeping requirement contained in this part.

(Approved by the Office of Management and Budget under control number 
1140-0078)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-93, 46 
FR 50787, Oct. 15, 1981; T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. 
ATF-446, 66 FR 16602, Mar. 27, 2001; ATF No. 1, 68 FR 13791, Mar. 20, 
2003]



Sec. 555.127  Daily summary of magazine transactions.

    In taking the inventory required by Sec. Sec. 555.122, 555.123, 
555.124, and 555.125, a licensee or permittee shall enter the inventory 
in a record of daily summary transactions to be kept at each magazine of 
an approved storage facility; however, these records may be kept at one 
central location on the business premises if separate records of daily 
transactions are kept for each magazine. Not later than the close of the 
next business day, each licensee and permittee shall record by 
manufacturer's name or brand name, the total quantity received in and 
removed from each magazine during the day, and the total remaining on 
hand at the end of the day. Quantity entries for display fireworks may 
be expressed as the number and size of individual display fireworks in a 
finished state or as the number of packaged display segments or packaged 
displays. Information as to the number and size of display fireworks 
contained in any one packaged display segment or packaged display shall 
be provided to any ATF officer on request. Any discrepancy which might 
indicate a theft or loss of explosive materials is to be reported in 
acordance with Sec. 555.30.

[T.D. ATF-293, 55 FR 3722, Feb. 5, 1990, as amended by T.D. ATF-400, 63 
FR 45003, Aug. 24, 1998]



Sec. 555.128  Discontinuance of business.

    Where an explosive materials business or operations is discontinued 
and succeeded by a new licensee or new permittee, the records prescribed 
by this subpart shall appropriately reflect such facts and shall be 
delivered to the successor. Where discontinuance of the business or 
operations is absolute, the records required by this subpart must be 
delivered within 30 days following the business or operations 
discontinuance to any ATF office located in the region in which the 
business was located, or to the ATF Out-of-Business Records Center, 
Spring Mills Office Park, 882 T.J. Jackson Drive, Falling Waters, West 
Virginia 25419. Where State law or local ordinance requires the delivery 
of records to other responsible authority, the Chief, Firearms and 
Explosives Licensing Center may arrange for the delivery of the records 
required by this subpart to such authority. (See also, Sec. 555.61.)

[T.D. ATF-290, 54 FR 53054, Dec. 27, 1989, as amended by T.D. ATF-446a, 
66 FR 19089, Apr. 13, 2001; ATF No. 1, 68 FR 13792, Mar. 20, 2003]



Sec. 555.129  Exportation.

    Exportation of explosive materials is to be in accordance with the 
applicable provisions of section 38 of the Arms Export Control Act (22 
U.S.C. 2778) and implementing regulations. However, a licensed importer, 
licensed manufacturer, or licensed dealer exporting explosive materials 
shall maintain records showing the manufacture or acquisition of 
explosive materials as required by this part and records showing the 
quantity, the manufacturer's name or brand name of explosive materials, 
the name and address of the foreign consignee of the explosive 
materials, and the date the explosive materials were exported. See Sec. 
555.180 for regulations concerning the exportation of plastic 
explosives.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8377, Feb. 25, 1997]



Sec. 555.130  [Reserved]



                          Subpart H_Exemptions



Sec. 555.141  Exemptions.

    (a) General. Except for the provisions of Sec. Sec. 555.180 and 
555.181, this part does not apply to:
    (1) Any aspect of the transportation of explosive materials via 
railroad, water, highway, or air which is regulated by the U.S. 
Department of Transportation and its agencies, and which pertains to 
safety. For example, regulations issued by the Department of 
Transportation addressing the security

[[Page 158]]

risk of aliens transporting explosives by commercial motor or railroad 
carrier from Canada preclude the enforcement of 18 U.S.C. 842(i)(5) 
against persons shipping, transporting, receiving, or possessing 
explosives incident to and in connection with the commercial 
transportation of explosives by truck or rail from Canada into the 
United States. Questions concerning this exception should be directed to 
ATF's Public Safety Branch in Washington, DC.
    (2) The use of explosive materials in medicines and medicinal agents 
in the forms prescribed by the official United States Pharmacopeia or 
the National Formulary. ``The United States Pharmacopeia and The 
National Formulary,'' USP and NF Compendia, are available from the 
United States Pharmacopeial Convention, Inc., 12601 Twinbrook Parkway, 
Rockville, Maryland 20852.
    (3) The transportation, shipment, receipt, or importation of 
explosive materials for delivery to any agency of the United States or 
to any State or its political subdivision.
    (4) Small arms ammunition and components of small arms ammunition.
    (5) The manufacture under the regulation of the military department 
of the United States of explosive materials for, or their distribution 
to or storage or possession by, the military or naval services or other 
agencies of the United States.
    (6) Arsenals, navy yards, depots, or other establishments owned by, 
or operated by or on behalf of, the United States.
    (7) The importation, distribution, and storage of fireworks 
classified as UN0336, UN0337, UN0431, or UN0432 explosives by the U.S. 
Department of Transportation at 49 CFR 172.101 and generally known as 
``consumer fireworks'' or ``articles pyrotechnic.''
    (8) Gasoline, fertilizers, propellant actuated devices, or 
propellant actuated industrial tools manufactured, imported, or 
distributed for their intended purposes.
    (9) Industrial and laboratory chemicals which are intended for use 
as reagents and which are packaged and shipped pursuant to U.S. 
Department of Transportation regulations, 49 CFR Parts 100 to 177, which 
do not require explosives hazard warning labels.
    (b) Black powder. Except for the provisions applicable to persons 
required to be licensed under subpart D, this part does not apply with 
respect to commercially manufactured black powder in quantities not to 
exceed 50 pounds, percussion caps, safety and pyrotechnic fuses, quills, 
quick and slow matches, and friction primers, 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 
antique devices, as exempted from the term ``destructive devices'' in 18 
U.S.C. 921(a)(4).

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981 as amended by T.D. ATF-87, 46 FR 
46916, Sept. 23, 1981; T.D. ATF-293, 55 FR 3722, Feb. 5, 1990; T.D. ATF-
387, 62 FR 8377, Feb. 25, 1997; T.D. ATF-400, 63 FR 45003, Aug. 24, 
1998; ATF No. 1, 68 FR 13792, Mar. 20, 2003]



Sec. 555.142  Relief from disabilities (effective January 24, 2003).

    (a) Any person prohibited from shipping or transporting any 
explosive in or affecting interstate or foreign commerce or from 
receiving or possessing any explosive which has been shipped or 
transported in or affecting interstate or foreign commerce may make 
application for relief from disabilities under section 845(b) of the Act 
.
    (b) An application for relief from disabilities must be filed with 
the Director by submitting ATF Form 5400.29, Application for Restoration 
of Explosives Privileges, in accordance with the instructions on the 
form. The application must be supported by appropriate data, including 
the information specified in paragraph (f) of this section. Upon receipt 
of an incomplete or improperly executed application for relief, the 
applicant will be notified of the deficiency in the application. If the 
application is not corrected and returned within 30 days following the 
date of notification, the application will be considered abandoned.
    (c)(1) The Director may grant relief to an applicant if it is 
established to the satisfaction of the Director that the circumstances 
regarding the disability and the applicant's record and reputation are 
such that the applicant

[[Page 159]]

will not be likely to act in a manner dangerous to public safety and 
that the granting of such relief is not contrary to the public interest.
    (2) Except as provided in paragraph (c)(3) of this section, the 
Director will not grant relief if the applicant--
    (i) Has not been discharged from parole or probation for a period of 
at least 2 years;
    (ii) Is a fugitive from justice;
    (iii) Is a prohibited alien;
    (iv) Is an unlawful user of or addicted to any controlled substance;
    (v) Has been adjudicated a mental defective or committed to a mental 
institution, unless the applicant was subsequently determined by a 
court, board, commission, or other lawful authority to have been 
restored to mental competency, to be no longer suffering from a mental 
disorder, and to have had all rights restored; or
    (vi) Is prohibited by the law of the State where the applicant 
resides from receiving or possessing explosive materials.
    (3)(i) The Director may grant relief to aliens who have been 
lawfully admitted to the United States or to persons who have not been 
discharged from parole or probation for a period of at least 2 years if 
he determines that the applicant has a compelling need to possess 
explosives, such as for purposes of employment.
    (ii) The Director may grant relief to the persons identified in 
paragraph (c)(2) of this section in extraordinary circumstances where 
the granting of such relief is consistent with the public interest.
    (d) A person who has been granted relief under this section is 
relieved of all disabilities imposed by the Act for the disabilities 
disclosed in the application. The granting of relief will not affect any 
disabilities incurred subsequent to the date the application was filed. 
Relief from disabilities granted to aliens will be effective only so 
long as the alien retains his or her lawful immigration status.
    (e)(1) A licensee or permittee who is under indictment or 
information for, or convicted of, a crime punishable by imprisonment for 
a term exceeding one year during the term of a current license or 
permit, or while he has pending a license or permit renewal application, 
shall not be barred from licensed or permit operations for 30 days after 
the date of indictment or information or 30 days after the date upon 
which his conviction becomes final. Also, if he files his application 
for relief under this section within such 30 day period, he may further 
continue licensed or permit operations while his application is pending. 
A licensee or permittee who does not file an application within 30 days 
from the date of his indictment or information, or within 30 days from 
the date his conviction becomes final, shall not continue licensed or 
permit operations beyond 30 days from the date of his indictment or 
information or beyond 30 days from the date his conviction becomes 
final.
    (2) In the event the term of a license or permit of a person expires 
during the 30 day period following the date of indictment of information 
of during the 30 day period after the date upon which his conviction 
becomes final or while his application for relief is pending, he shall 
file a timely application for renewal of his license or permit in order 
to continue licensed or permit operations. The license or permit 
application is to show that the applicant has been indicted or under 
information for, or convicted of, a crime punishable by imprisonment for 
a term exceeding one year.
    (3) A licensee or permittee shall not continue licensed or permit 
operations beyond 30 days following the date the Director issues 
notification that the licensee's or permittee's application for removal 
of the disabilities resulting from an indictment, information or 
conviction has been denied.
    (4) When a licensee or permittee may no longer continue licensed or 
permit operations under this section, any application for renewal of 
license of permit filed by the licensee or permittee while his 
application for removal of disabilities resulting from an indictment, 
information or conviction is pending, will be denied by the regional 
director (compliance).
    (f)(1) Applications for relief from disabilities must include the 
following information:
    (i) In the case of a corporation, or of any person having the power 
to direct

[[Page 160]]

or control the management of the corporation, information as to the 
absence of culpability in the offense for which the corporation, or any 
such person, was indicted, formally accused or convicted;
    (ii) In the case of an applicant who is an individual, two properly 
completed FBI Forms FD-258 (fingerprint card), and a written statement 
from each of three references who are not related to the applicant by 
blood or marriage and have known the applicant for at least 3 years, 
recommending the granting of relief;
    (iii) Written consent to examine and obtain copies of records and to 
receive statements and information regarding the applicant's background, 
including records, statements and other information concerning 
employment, medical history, military service, immigration status, and 
criminal record;
    (iv) In the case of an applicant having been convicted of a crime 
punishable by imprisonment for a term exceeding one year, a copy of the 
indictment or information on which the applicant was convicted, the 
judgment of conviction or record of any plea of nolo contendere or plea 
of guilty or finding of guilt by the court;
    (v) In the case of an applicant under indictment, a copy of the 
indictment or information;
    (vi) In the case of an applicant who has been adjudicated a mental 
defective or committed to a mental institution, a copy of the order of a 
court, board, commission, or other lawful authority that made the 
adjudication or ordered the commitment, any petition that sought to have 
the applicant so adjudicated or committed, any medical records 
reflecting the reasons for commitment and diagnoses of the applicant, 
and any court order or finding of a court, board, commission, or other 
lawful authority showing the applicant's discharge from commitment, 
restoration of mental competency and the restoration of rights;
    (vii) In the case of an applicant who has been discharged from the 
Armed Forces under dishonorable conditions, a copy of the applicant's 
Certificate of Release or Discharge from Active Duty (Department of 
Defense Form 214), Charge Sheet (Department of Defense Form 458), and 
final court martial order;
    (viii) In the case of an applicant who, having been a citizen of the 
United States, has renounced his or her citizenship, a copy of the 
formal renunciation of nationality before a diplomatic or consular 
officer of the United States in a foreign state or before an officer 
designated by the Attorney General when the United States was in a state 
of war (see 8 U.S.C. 1481(a)(5) and (6)); and
    (ix) In the case of an applicant who is an alien, documentation that 
the applicant is an alien who has been lawfully admitted to the United 
States; certification from the applicant including the applicant's INS-
issued alien number or admission number, country/countries of 
citizenship, and immigration status, and certifying that the applicant 
is legally authorized to work in the United States, or other purposes 
for which possession of explosives is required; certification from an 
appropriate law enforcement agency of the applicant's country of 
citizenship stating that the applicant does not have a criminal record; 
and, if applicable, certification from a Federal explosives licensee or 
permittee or other employer stating that the applicant is employed by 
the employer and must possess explosive materials for purposes of 
employment. These certifications must be submitted in English.
    (2) Any record or document of a court or other government entity or 
official required by paragraph (f)(1) of this section must be certified 
by the court or other government entity or official as a true copy.

(Approved by the Office of Management and Budget under control number 
1140-0076)

[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 13792, Mar. 20, 2003]



      Subpart I_Unlawful Acts, Penalties, Seizures and Forfeitures



Sec. 555.161  Engaging in business without a license.

    Any person engaging in the business of importing, manufacturing, or 
dealing in explosive materials without a license issued under the Act, 
shall be

[[Page 161]]

fined not more than $10,000 or imprisoned not more than 10 years, or 
both.



Sec. 555.162  False statement or representation.

    Any person who knowingly withholds information or makes any false or 
fictitious oral or written statement or furnishes or exhibits any false, 
fictitious, or misrepresented identification, intended or likely to 
deceive for the purpose of obtaining explosive materials, or a license, 
permit, exemption, or relief from disability under the Act, shall be 
fined not more than $10,000 or imprisoned not more than 10 years, or 
both.



Sec. 555.163  False entry in record.

    Any licensed importer, licensed manufacturer, licensed dealer, or 
permittee who knowingly makes any false entry in any record required to 
be kept under subpart G of this part, shall be fined not more than 
$10,000 or imprisoned not more than 10 years, or both.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45003, Aug. 24, 1998]



Sec. 555.164  Unlawful storage.

    Any person who stores any explosive material in a manner not in 
conformity with this part, shall be fined not more than $1,000 or 
imprisoned not more than one year, or both.



Sec. 555.165  Failure to report theft or loss.

    (a) Any person who has knowledge of the theft or loss of any 
explosive materials from his stock and fails to report the theft or loss 
within 24 hours of discovery in accordance with Sec. 555.30, shall be 
fined not more than $1,000 or imprisoned not more than one year, or 
both.
    (b) On and after January 24, 2003, any licensee or permittee who 
fails to report a theft of explosive materials in accordance with Sec. 
555.30 will be fined under title 18 U.S.C., imprisoned not more than 5 
years, or both.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF No. 1, 68 FR 
13793, Mar. 20, 2003]



Sec. 555.166  Seizure or forfeiture.

    Any explosive materials involved or used or intended to be used in 
any violation of the Act or of this part or in any violation of any 
criminal law of the United States are subject to seizure and forfeiture, 
and all provisions of title 26, U.S.C. relating to the seizure, 
forfeiture, and disposition of firearms, as defined in 26 U.S.C. 
5845(a), will, so far as applicable, extend to seizures and forfeitures 
under the Act. (See Sec. 72.27 of this title for regulations on summary 
destruction of explosive materials which are impracticable or unsafe to 
remove to a place of storage.)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-363, 60 
FR 17449, Apr. 6, 1995]



                 Subpart J_Marking of Plastic Explosives



Sec. 555.180  Prohibitions relating to unmarked plastic explosives.

    (a) No person shall manufacture any plastic explosive that does not 
contain a detection agent.
    (b) No person shall import or bring into the United States, or 
export from the United States, any plastic explosive that does not 
contain a detection agent. This paragraph does not apply to the 
importation or bringing into the United States, or the exportation from 
the United States, of any plastic explosive that was imported or brought 
into, or manufactured in the United States prior to April 24, 1996, by 
or on behalf of any agency of the United States performing military or 
police functions (including any military reserve component) or by or on 
behalf of the National Guard of any State, not later than 15 years after 
the date of entry into force of the Convention on the Marking of Plastic 
Explosives with respect to the United States, i.e., not later than June 
21, 2013.
    (c) No person shall ship, transport, transfer, receive, or possess 
any plastic explosive that does not contain a detection agent. This 
paragraph does not apply to:
    (1) The shipment, transportation, transfer, receipt, or possession 
of any plastic explosive that was imported or brought into, or 
manufactured in the

[[Page 162]]

United States prior to April 24, 1996, by any person during the period 
beginning on that date and ending on April 24, 1999; or
    (2) The shipment, transportation, transfer, receipt, or possession 
of any plastic explosive that was imported or brought into, or 
manufactured in the United States prior to April 24, 1996, by or on 
behalf of any agency of the United States performing a military or 
police function (including any military reserve component) or by or on 
behalf of the National Guard of any State, not later than 15 years after 
the date of entry into force of the Convention on the Marking of Plastic 
Explosives with respect to the United States, i.e., not later than June 
21, 2013.
    (d) When used in this subpart, terms are defined as follows:
    (1) Convention on the Marking of Plastic Explosives means the 
Convention on the Marking of Plastic Explosives for the Purposes of 
Detection, Done at Montreal on 1 March 1991.
    (2) ``Date of entry into force'' of the Convention on the Marking of 
Plastic Explosives means that date on which the Convention enters into 
force with respect to the U.S. in accordance with the provisions of 
Article XIII of the Convention on the Marking of Plastic Explosives. The 
Convention entered into force on June 21, 1998.
    (3) Detection agent means any one of the substances specified in 
this paragraph when introduced into a plastic explosive or formulated in 
such explosive as a part of the manufacturing process in such a manner 
as to achieve homogeneous distribution in the finished explosive, 
including--
    (i) Ethylene glycol dinitrate (EGDN), 
C2H4(NO3)2, molecular weight 
152, when the minimum concentration in the finished explosive is 0.2 
percent by mass;
    (ii) 2,3-Dimethyl-2,3-dinitrobutane (DMNB), 
C6H12(NO2)2, molecular 
weight 176, when the minimum concentration in the finished explosive is 
0.1 percent by mass;
    (iii) Para-Mononitrotoluene (p-MNT), 
C7H7NO2, molecular weight 137, when the 
minimum concentration in the finished explosive is 0.5 percent by mass;
    (iv) Ortho-Mononitrotoluene (o-MNT), 
C7H7NO2, molecular weight 137, when the 
minimum concentration in the finished explosive is 0.5 percent by mass; 
and
    (v) Any other substance in the concentration specified by the 
Director, after consultation with the Secretary of State and Secretary 
of Defense, that has been added to the table in Part 2 of the Technical 
Annex to the Convention on the Marking of Plastic Explosives.
    (4) Plastic explosive means an explosive material in flexible or 
elastic sheet form formulated with one or more high explosives which in 
their pure form has a vapor pressure less than 10-\4\ Pa at a 
temperature of 25 [deg]C, is formulated with a binder material, and is 
as a mixture malleable or flexible at normal room temperature. High 
explosives, as defined in Sec. 555.202(a), are explosive materials 
which can be caused to detonate by means of a blasting cap when 
unconfined.

[T.D. ATF-387, 62 FR 8376, Feb. 25, 1997, as amended by T.D. ATF-419, 64 
FR 55628, Oct. 14, 1999]



Sec. 555.181  Reporting of plastic explosives.

    All persons, other than an agency of the United States (including 
any military reserve component) or the National Guard of any State, 
possessing any plastic explosive on April 24, 1996, shall submit a 
report to the Director no later than August 22, 1996. The report shall 
be in writing and mailed by certified mail (return receipt requested) to 
the Director at P.O. Box 50204, Washington, DC 20091-0204. The report 
shall include the quantity of plastic explosives possessed on April 24, 
1996; any marks of identification on such explosives; the name and 
address of the manufacturer or importer; the storage location of such 
explosives, including the city and State; and the name and address of 
the person possessing the plastic explosives.

(Approved by the Office of Management and Budget under control number 
1512-0535)

[T.D. ATF-382, 61 FR 38085, July 23, 1996, as amended by T.D. ATF-387, 
62 FR 8377, Feb. 25, 1997]



Sec. 555.182  Exceptions.

    It is an affirmative defense against any proceeding involving 
Sec. Sec. 555.180 and

[[Page 163]]

555.181 if the proponent proves by a preponderance of the evidence that 
the plastic explosive--
    (a) Consisted of a small amount of plastic explosive intended for 
and utilized solely in lawful--
    (1) Research, development, or testing of new or modified explosive 
materials;
    (2) Training in explosives detection or development or testing of 
explosives detection equipment; or
    (3) Forensic science purposes; or
    (b) Was plastic explosive that, by April 24, 1999, will be or is 
incorporated in a military device within the territory of the United 
States and remains an integral part of such military device, or is 
intended to be, or is incorporated in, and remains an integral part of a 
military device that is intended to become, or has become, the property 
of any agency of the United States performing military or police 
functions (including any military reserve component) or the National 
Guard of any State, wherever such device is located. For purposes of 
this paragraph, the term ``military device'' includes, but is not 
restricted to, shells, bombs, projectiles, mines, missiles, rockets, 
shaped charges, grenades, perforators, and similar devices lawfully 
manufactured exclusively for military or police purposes.

[T.D. ATF-387, 62 FR 8377, Feb. 25, 1997]



Sec. 555.183  Importation of plastic explosives on or after April 24, 1997.

    Persons filing Form 6 applications for the importation of plastic 
explosives on or after April 24, 1997, shall attach to the application 
the following written statement, prepared in triplicate, executed under 
the penalties of perjury:
    (a) ``I declare under the penalties of perjury that the plastic 
explosive to be imported contains a detection agent as required by 27 
CFR 555.180(b)''; or
    (b) ``I declare under the penalties of perjury that the plastic 
explosive to be imported is a ``small amount'' to be used for research, 
training, or testing purposes and is exempt from the detection agent 
requirement pursuant to 27 CFR 555.182.''

[T.D. ATF-387, 62 FR 8377, Feb. 25, 1997]



Sec. 555.184  Statements of process and samples.

    (a) A complete and accurate statement of process with regard to any 
plastic explosive or to any detection agent that is to be introduced 
into a plastic explosive or formulated in such plastic explosive shall 
be submitted by a licensed manufacturer or licensed importer, upon 
request, to the Director.
    (b) Samples of any plastic explosive or detection agent shall be 
submitted by a licensed manufacturer or licensed importer, upon request, 
to the Director.

(Paragraph (a) approved by the Office of Management and Budget under 
control number 1512-0539)

[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]



Sec. 555.185  Criminal sanctions.

    Any person who violates the provisions of 18 U.S.C. 842(l)-(o) shall 
be fined under title 18, U.S.C., imprisoned for not more than 10 years, 
or both.

[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]



Sec. 555.186  Seizure or forfeiture.

    Any plastic explosive that does not contain a detection agent in 
violation of 18 U.S.C. 842(l)-(n) is subject to seizure and forfeiture, 
and all provisions of 19 U.S.C. 1595a, relating to seizure, forfeiture, 
and disposition of merchandise introduced or attempted to be introduced 
into the U.S. contrary to law, shall extend to seizures and forfeitures 
under this subpart. See Sec. 72.27 of this chapter for regulations on 
summary destruction of plastic explosives that do not contain a 
detection agent.

[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]



                            Subpart K_Storage



Sec. 555.201  General.

    (a) Section 842(j) of the Act and Sec. 555.29 of this part require 
that the storage of explosive materials by any person must be in 
accordance with the regulations in this part. Further, section 846 of 
this Act authorizes regulations to prevent the recurrence of accidental 
explosions in which explosive materials were involved. The storage 
standards prescribed by this subpart confer no right or privileges to 
store

[[Page 164]]

explosive materials in a manner contrary to State or local law.
    (b) The Director may authorize alternate construction for explosives 
storage magazines when it is shown that the alternate magazine 
construction is substantially equivalent to the standards of safety and 
security contained in this subpart. Any alternate explosive magazine 
construction approved by the Director prior to August 9, 1982, will 
continue as approved unless notified in writing by the Director. Any 
person intending to use alternate magazine construction shall submit a 
letter application to the regional director (compliance) for transmittal 
to the Director, specifically describing the proposed magazine. 
Explosive materials may not be stored in alternate magazines before the 
applicant has been notified that the application has been approved.
    (c) A licensee or permittee who intends to make changes in his 
magazines, or who intends to construct or acquire additional magazines, 
shall comply with Sec. 555.63.
    (d) The regulations set forth in Sec. Sec. 555.221 through 555.224 
pertain to the storage of display fireworks, pyrotechnic compositions, 
and explosive materials used in assembling fireworks and articles 
pyrotechnic.
    (e) The provisions of Sec. 555.202(a) classifying flash powder and 
bulk salutes as high explosives are mandatory after March 7, 1990: 
Provided, that those persons who hold licenses or permits under this 
part on that date shall, with respect to the premises covered by such 
licenses or permits, comply with the high explosives storage 
requirements for flash powder and bulk salutes by March 7, 1991.
    (f) Any person who stores explosive materials shall notify the 
authority having jurisdiction for fire safety in the locality in which 
the explosive materials are being stored of the type, magazine capacity, 
and location of each site where such explosive materials are stored. 
Such notification shall be made orally before the end of the day on 
which storage of the explosive materials commenced and in writing within 
48 hours from the time such storage commenced.

(Paragraph (f) approved by the Office of Management and Budget under 
control number 1512-0536)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.202  Classes of explosive materials.

    For purposes of this part, there are three classes of explosive 
materials. These classes, together with the description of explosive 
materials comprising each class, are as follows:
    (a) High explosives. Explosive materials which can be caused to 
detonate by means of a blasting cap when unconfined, (for example, 
dynamite, flash powders, and bulk salutes). See also Sec. 555.201(e).
    (b) Low explosives. Explosive materials which can be caused to 
deflagrate when confined (for example, black powder, safety fuses, 
igniters, igniter cords, fuse lighters, and ``display fireworks'' 
classified as UN0333, UN0334, or UN0335 by the U.S. Department of 
Transportation regulations at 49 CFR 172.101, except for bulk salutes).
    (c) Blasting agents. (For example, ammonium nitrate-fuel oil and 
certain water-gels (see also Sec. 555.11).

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.203  Types of magazines.

    For purposes of this part, there are five types of magazines. These 
types, together with the classes of explosive materials, as defined in 
Sec. 555.202, which will be stored in them, are as follows:
    (a) Type 1 magazines. Permanent magazines for the storage of high 
explosives, subject to the limitations prescribed by Sec. Sec. 555.206 
and 555.213. Other classes of explosive materials may also be stored in 
type 1 magazines.
    (b) Type 2 magazines. Mobile and portable indoor and outdoor 
magazines for the storage of high explosives, subject to the limitations 
prescribed by Sec. Sec. 555.206, 555.208(b), and 555.213. Other classes 
of explosive materials may also be stored in type 2 magazines.

[[Page 165]]

    (c) Type 3 magazines. Portable outdoor magazines for the temporary 
storage of high explosives while attended (for example, a ``day-box''), 
subject to the limitations prescribed by Sec. Sec. 555.206 and 555.213. 
Other classes of explosives materials may also be stored in type 3 
magazines.
    (d) Type 4 magazines. Magazines for the storage of low explosives, 
subject to the limitations prescribed by Sec. Sec. 555.206(b), 
555.210(b), and 555.213. Blasting agents may be stored in type 4 
magazines, subject to the limitations prescribed by Sec. Sec. 
555.206(c), 555.211(b), and 555.213. Detonators that will not mass 
detonate may also be stored in type 4 magazines, subject to the 
limitations prescribed by Sec. Sec. 555.206(a), 555.210(b), and 
555.213.
    (e) Type 5 magazines. Magazines for the storage of blasting agents, 
subject to the limitations prescribed by Sec. Sec. 555.206(c), 
555.211(b), and 555.213.



Sec. 555.204  Inspection of magazines.

    Any person storing explosive materials shall inspect his magazines 
at least every seven days. This inspection need not be an inventory, but 
must be sufficient to determine whether there has been unauthorized 
entry or attempted entry into the magazines, or unauthorized removal of 
the contents of the magazines.



Sec. 555.205  Movement of explosive materials.

    All explosive materials must be kept in locked magazines meeting the 
standards in this subpart unless they are:
    (a) In the process of manufacture;
    (b) Being physically handled in the operating process of a licensee 
or user;
    (c) Being used; or
    (d) Being transported to a place of storage or use by a licensee or 
permittee or by a person who has lawfully acquired explosive materials 
under Sec. 555.106.



Sec. 555.206  Location of magazines.

    (a) Outdoor magazines in which high explosives are stored must be 
located no closer to inhabited buildings, passenger railways, public 
highways, or other magazines in which high explosives are stored, than 
the minimum distances specified in the table of distances for storage of 
explosive materials in Sec. 555.218.
    (b) Outdoor magazines in which low explosives are stored must be 
located no closer to inhibited buildings, passenger railways, public 
highways, or other magazines in which explosive materials are stored, 
than the minimum distances specified in the table of distances for 
storage of low explosives in Sec. 555.219, except that the table of 
distances in Sec. 555.224 shall apply to the storage of display 
fireworks. The distances shown in Sec. 555.219 may not be reduced by 
the presence of barricades.
    (c)(1) Outdoor magazines in which blasting agents in quantities of 
more than 50 pounds are stored must be located no closer to inhabited 
buildings, passenger railways, or public highways than the minimum 
distances specified in the table of distances for storage of explosive 
materials in Sec. 555.218.
    (2) Ammonium nitrate and magazines in which blasting agents are 
stored must be located no closer to magazines in which high explosives 
or other blasting agents are stored than the minimum distances specified 
in the table of distances for the separation of ammonium nitrate and 
blasting agents in Sec. 555.220. However, the minimum distances for 
magazines in which explosives and blasting agents are stored from 
inhabited buildings, etc., may not be less than the distances specified 
in the table of distances for storage of explosives materials in Sec. 
555.218.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.207  Construction of type 1 magazines.

    A type 1 magazine is a permanent structure: a building, an igloo or 
``Army-type structure'', a tunnel, or a dugout. It is to be bullet-
resistant, fire-resistant, weather-resistant, theft-resistant, and 
ventilated.
    (a) Buildings. All building type magazines are to be constructed of 
masonry, wood, metal, or a combination of these materials, and have no 
openings except for entrances and ventilation. The ground around 
building magazines must slope away for drainage or other adequate 
drainage provided.

[[Page 166]]

    (1) Masonry wall construction. Masonry wall construction is to 
consist of brick, concrete, tile, cement block, or cinder block and be 
not less than 6 inches in thickness. Hollow masonry units used in 
construction must have all hollow spaces filled with well-tamped, 
coarse, dry sand or weak concrete (at least a mixture of one part cement 
and eight parts of sand with enough water to dampen the mixture while 
tamping in place). Interior walls are to be constructed of, or covered 
with, a nonsparking material.
    (2) Fabricated metal wall construction. Metal wall construction is 
to consist of sectional sheets of steel or aluminum not less than number 
14-gauge, securely fastened to a metal framework. Metal wall 
construction is either lined inside with brick, solid cement blocks, 
hardwood not less than four inches thick, or will have at least a six 
inch sand fill between interior and exterior walls. Interior walls are 
to be constructed of, or covered with, a nonsparking material.
    (3) Wood frame wall construction. The exterior of outer wood walls 
is to be covered with iron or aluminum not less than number 26-gauge. An 
inner wall of, or covered with nonsparking material will be constructed 
so as to provide a space of not less than six inches between the outer 
and inner walls. The space is to be filled with coarse, dry sand or weak 
concrete.
    (4) Floors. Floors are to be constructed of, or covered with, a 
nonsparking material and shall be strong enough to bear the weight of 
the maximum quantity to be stored. Use of pallets covered with a 
nonsparking material is considered equivalent to a floor constructed of 
or covered with a nonsparking material.
    (5) Foundations. Foundations are to be constructed of brick, 
concrete, cement block, stone, or wood posts. If piers or posts are 
used, in lieu of a continuous foundation, the space under the buildings 
is to be enclosed with metal.
    (6) Roof. Except for buildings with fabricated metal roofs, the 
outer roof is to be covered with no less than number 26-guage iron or 
aluminum, fastened to at least \7/8\ inch sheathing.
    (7) Bullet-resistant ceilings or roofs. Where it is possible for a 
bullet to be fired directly through the roof and into the magazine at 
such an angle that the bullet would strike the explosives within, the 
magazine is to be protected by one of the following methods:
    (i) A sand tray lined with a layer of building paper, plastic, or 
other nonporous material, and filled with not less than four inches of 
coarse, dry sand, and located at the tops of inner walls covering the 
entire ceiling area, except that portion necessary for ventilation.
    (ii) A fabricated metal roof constructed of \3/16\-inch plate steel 
lined with four inches of hardwood. (For each additional \1/16\ inch of 
plate steel, the hardwood lining may be decreased one inch.)
    (8) Doors. All doors are to be constructed of not less than \1/4\ 
inch plate steel and lined with at least two inches of hardwood. Hinges 
and hasps are to be attached to the doors by welding, riveting or 
bolting (nuts on inside of door). They are to be installed in such a 
manner that the hinges and hasps cannot be removed when the doors are 
closed and locked.
    (9) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlock fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a casehardened shackle of at least \3/8\ inch 
diameter. Padlocks must be protected with not less than \1/4\ inch steel 
hoods constructed so as to prevent sawing or lever action on the locks, 
hasps, and staples. These requirements do not apply to magazine doors 
that are adequately secured on the inside by means of a bolt, lock, or 
bar that cannot be actuated from the outside.
    (10) Ventilation. Ventilation is to be provided to prevent dampness 
and heating of stored explosive materials. Ventilation openings must be 
screened to prevent the entrance of sparks. Ventilation openings in side 
walls and foundations must be offset or shielded

[[Page 167]]

for bullet-resistant purposes. Magazines having foundation and roof 
ventilators with the air circulating between the side walls and the 
floors and between the side walls and the ceiling must have a wooden 
lattice lining or equivalent to prevent the packages of explosive 
materials from being stacked against the side walls and blocking the air 
circulation.
    (11) Exposed metal. No sparking material is to be exposed to contact 
with the stored explosive materials. All ferrous metal nails in the 
floor and side walls, which might be exposed to contact with explosive 
materials, must be blind nailed, countersunk, or covered with a 
nonsparking lattice work or other nonsparking material.
    (b) Igloos, ``Army-type structures'', tunnels, and dugouts. Igloo, 
``Army-type structure'', tunnel, and dugout magazines are to be 
constructed of reinforced concrete, masonry, metal, or a combination of 
these materials. They must have an earthmound covering of not less than 
24 inches on the top, sides and rear unless the magazine meets the 
requirements of paragraph (a)(7) of this section. Interior walls and 
floors must be constructed of, or covered with, a nonsparking material. 
Magazines of this type are also to be constructed in conformity with the 
requirements of paragraph (a)(4) and paragraphs (a)(8) through (11) of 
this section.



Sec. 555.208  Construction of type 2 magazines.

    A type 2 magazine is a box, trailer, semitrailer, or other mobile 
facility.
    (a) Outdoor magazines--(1) General. Outdoor magazines are to be 
bullet-resistant, fire-resistant, weather-resistant, theft-resistant, 
and ventilated. They are to be supported to prevent direct contact with 
the ground and, if less than one cubic yard in size, must be securely 
fastened to a fixed object. The ground around outdoor magazines must 
slope away for drainage or other adequate drainage provided. When 
unattended, vehicular magazines must have wheels removed or otherwise 
effectively immobiliized by kingpin locking devices or other methods 
approved by the Director.
    (2) Exterior construction. The exterior and doors are to be 
constructed of not less than \1/4\-inch steel and lined with at least 
two inches of hardwood. Magazines with top openings will have lids with 
water-resistant seals or which overlap the sides by at least one inch 
when in a closed position.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\-
inch diameter. Padlocks must be protected with not less than \1/4\-inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. These requirements do not apply to magazine 
doors that are adequately secured on the inside by means of a bolt, 
lock, or bar that cannot be actuated from the outside.
    (b) Indoor magazines--(1) General. Indoor magazines are to be fire-
resistant and theft-resistant. They need not be bullet-resistant and 
weather-resistant if the buildings in which they are stored provide 
protection from the weather and from bullet penetration. No indoor 
magazine is to be located in a residence or dwelling. The indoor storage 
of high explosives must not exceed a quantity of 50 pounds. More than 
one indoor magazine may be located in the same building if the total 
quantity of explosive materials stored does not exceed 50 pounds. 
Detonators must be stored in a separate magazine (except as provided in 
Sec. 555.213) and the total quantity of detonators must not exceed 
5,000.
    (2) Exterior construction. Indoor magazines are to be constructed of 
wood or metal according to one of the following specifications:
    (i) Wood indoor magazines are to have sides, bottoms and doors 
constructed of at least two inches of hardwood and are to be well braced 
at the corners. They are to be covered with sheet metal of not less than 
number 26-

[[Page 168]]

gauge (.0179 inches). Nails exposed to the interior of magazines must be 
countersunk.
    (ii) Metal indoor magazines are to have sides, bottoms and doors 
constructed of not less than number 12-gauge (.1046 inches) metal and be 
lined inside with a nonsparking material. Edges of metal covers must 
overlap sides at least one inch.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\-
inch diameter. Padlocks must be protected with not less than \1/4\-inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. Indoor magazines located in secure rooms that 
are locked as provided in this subparagraph may have each door locked 
with one steel padlock (which need not be protected by a steel hood) 
having at least five tumblers and a case-hardened shackle of at least 
\3/8\-inch diameter, if the door hinges and lock hasp are securely 
fastened to the magazine. These requirements do not apply to magazine 
doors that are adequately secured on the inside by means of a bolt, 
lock, or bar that cannot be actuated from the outside.
    (c) Detonator boxes. Magazines for detonators in quantities of 100 
or less are to have sides, bottoms and doors constructed of not less 
than number 12-gauge (.1046 inches) metal and lined with a nonsparking 
material. Hinges and hasps must be attached so they cannot be removed 
from the outside. One steel padlock (which need not be protected by a 
steel hood) having at least five tumblers and a case-hardened shackle of 
at least \3/8\-inch diameter is sufficient for locking purposes.



Sec. 555.209  Construction of type 3 magazines.

    A type 3 magazine is a ``day-box'' or other portable magazine. It 
must be fire-resistant, weather-resistant, and theft-resistant. A type 3 
magazine is to be constructed of not less than number 12-gauge (.1046 
inches) steel, lined with at least either \1/2\-inch plywood or \1/2\-
inch Masonite-type hardboard. Doors must overlap sides by at least one 
inch. Hinges and hasps are to be attached by welding, riveting or 
bolting (nuts on inside). One steel padlock (which need not be protected 
by a steel hood) having at least five tumblers and a case-hardened 
shackle of at least \3/8\-inch diameter is sufficient for locking 
purposes. Explosive materials are not to be left unattended in type 3 
magazines and must be removed to type 1 or 2 magazines for unattended 
storage.



Sec. 555.210  Construction of type 4 magazines.

    A type 4 magazine is a building, igloo or ``Army-type structure'', 
tunnel, dugout, box, trailer, or a semitrailer or other mobile magazine.
    (a) Outdoor magazines--(1) General. Outdoor magazines are to be 
fire-resistant, weather-resistant, and theft-resistant. The ground 
around outdoor magazines must slope away for drainage or other adequate 
drainage be provided. When unattended, vehicular magazines must have 
wheels removed or otherwise be effectively immobilized by kingpin 
locking devices or other methods approved by the Director.
    (2) Construction. Outdoor magazines are to be constructed of 
masonry, metal-covered wood, fabricated metal, or a combination of these 
materials. Foundations are to be constructed of brick, concrete, cement 
block, stone, or metal or wood posts. If piers or posts are used, in 
lieu of a continuous foundation, the space under the building is to be 
enclosed with fire-resistant material. The walls and floors are to be 
constructed of, or covered with, a nonsparking material or lattice work. 
The doors must be metal or solid wood covered with metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of

[[Page 169]]

door). Hinges and hasps must be installed so that they cannot be removed 
when the doors are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and case-hardened shackle of at least \3/8\ inch 
diameter. Padlocks must be protected with not less than \1/4\ inch steel 
hoods constructed so as to prevent sawing or lever action on the locks, 
hasps, and staples. These requirements do not apply to magazine doors 
that are adequately secured on the inside by means of a bolt, lock, or 
bar that cannot be actuated from the outside.
    (b) Indoor magazine--(1) General. Indoor magazines are to be fire-
resistant and theft-resistant. They need not be weather-resistant if the 
buildings in which they are stored provide protection from the weather. 
No indoor magazine is to be located in a residence or dwelling. The 
indoor storage of low explosives must not exceed a quantity of 50 
pounds. More than one indoor magazine may be located in the same 
building if the total quantity of explosive materials stored does not 
exceed 50 pounds. Detonators that will not mass detonate must be stored 
in a separate magazine and the total number of electric detonators must 
not exceed 5,000.
    (2) Construction. Indoor magazines are to be constructed of masonry, 
metal-covered wood, fabricated metal, or a combination of these 
materials. The walls and floors are to be constructed of, or covered 
with, a nonsparking material. The doors must be metal or solid wood 
covered with metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\ 
inch diameter. Padlocks must be protected with not less than \1/4\ inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. Indoor magazines located in secure rooms that 
are locked as provided in this subparagraph may have each door locked 
with one steel padlock (which need not be protected by a steel hood) 
having at least five tumblers and a case-hardened shackle of at least 
\3/8\ inch diameter, if the door hinges and lock hasp are securely 
fastened to the magazine. These requirements do not apply to magazine 
doors that are adequately secured on the inside by means of a bolt, 
lock, or bar that cannot be actuated from the outside.



Sec. 555.211  Construction of type 5 magazines.

    A type 5 magazine is a building, igloo or ``Army-type structure'', 
tunnel, dugout, bin, box, trailer, or a semitrailer or other mobile 
facility.
    (a) Outdoor magazines--(1) General. Outdoor magazines are to be 
weather-resistant and theft-resistant. The ground around magazines must 
slope away for drainage or other adequate drainage be provided. When 
unattended, vehicular magazines must have wheels removed or otherwise be 
effectively immobilized by kingpin locking devices or other methods 
approved by the Director.
    (2) Construction. The doors are to be constructed of solid wood or 
metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\ 
inch diameter. Padlocks must be protected with not less than \1/4\ inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and

[[Page 170]]

staples. Trailers, semitrailers, and similar vehicular magazines may, 
for each door, be locked with one steel padlock (which need not be 
protected by a steel hood) having at least five tumblers and a case-
hardened shackle of at least \3/8\ inch diameter, if the door hinges and 
lock hasp are securely fastened to the magazine and to the door frame. 
These requirements do not apply to magazine doors that are adequately 
secured on the inside by means of a bolt, lock, or bar that cannot be 
actuated from the outside.
    (5) Placards. The placards required by Department of Transportation 
regulations at 49 CFR part 172, subpart F, for the transportation of 
blasting agents shall be displayed on all magazines.
    (b) Indoor magazines--(1) General. Indoor magazines are to be theft-
resistant. They need not be weather-resistant if the buildings in which 
they are stored provide protection from the weather. No indoor magazine 
is to be located in a residence or dwelling. Indoor magazines containing 
quantities of blasting agents in excess of 50 pounds are subject to the 
requirements of Sec. 555.206 of this subpart.
    (2) Construction. The doors are to be constructed of wood or metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside). Hinges and hasps must 
be installed so that they cannot be removed when the doors are closed 
and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\ 
inch diameter. Padlocks must be protected with not less than \1/4\ inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. Indoor magazines located in secure rooms that 
are locked as provided in this subparagraph may have each door locked 
with one steel padlock (which need not be protected by a steel hood) 
having at least five tumblers and a case-hardened shackle of at least 
\3/8\ inch diameter, if the door hinges and lock hasps are securely 
fastened to the magazine and to the door frame. These requirements do 
not apply to magazine doors that are adequately secured on the inside by 
means of a bolt, lock, or bar that cannot be actuated from the outside.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-298, 55 
FR 21863, May 30, 1990]



Sec. 555.212  Smoking and open flames.

    Smoking, matches, open flames, and spark producing devices are not 
permitted:
    (a) In any magazine;
    (b) Within 50 feet of any outdoor magazine; or
    (c) Within any room containing an indoor magazine.



Sec. 555.213  Quantity and storage restrictions.

    (a) Explosive materials in excess of 300,000 pounds or detonators in 
excess of 20 million are not to be stored in one magazine unless 
approved by the Director.
    (b) Detonators are not to be stored in the same magazine with other 
explosive materials, except under the following circumstances:
    (1) In a type 4 magazine, detonators that will not mass detonate may 
be stored with electric squibs, safety fuse, igniters, and igniter cord.
    (2) In a type 1 or type 2 magazine, detonators may be stored with 
delay devices and any of the items listed in paragraph (b)(1) of this 
section.



Sec. 555.214  Storage within types 1, 2, 3, and 4 magazines.

    (a) Explosive materials within a magazine are not to be placed 
directly against interior walls and must be stored so as not to 
interfere with ventilation. To prevent contact of stored explosive 
materials with walls, a nonsparking lattice work or other nonsparking 
material may be used.
    (b) Containers of explosive materials are to be stored so that marks 
are visible. Stocks of explosive materials are to be stored so they can 
be easily counted and checked upon inspection.
    (c) Except with respect to fiberboard or other nonmetal containers, 
containers of explosive materials are not

[[Page 171]]

to be unpacked or repacked inside a magazine or within 50 feet of a 
magazine, and must not be unpacked or repacked close to other explosive 
materials. Containers of explosive materials must be closed while being 
stored.
    (d) Tools used for opening or closing containers of explosive 
materials are to be of nonsparking materials, except that metal slitters 
may be used for opening fiberboard containers. A wood wedge and a fiber, 
rubber, or wooden mallet are to be used for opening or closing wood 
containers of explosive materials. Metal tools other than nonsparking 
transfer conveyors are not to be stored in any magazine containing high 
explosives.



Sec. 555.215  Housekeeping.

    Magazines are to be kept clean, dry, and free of grit, paper, empty 
packages and containers, and rubbish. Floors are to be regularly swept. 
Brooms and other utensils used in the cleaning and maintenance of 
magazines must have no spark-producing metal parts, and may be kept in 
magazines. Floors stained by leakage from explosive materials are to be 
cleaned according to instructions of the explosives manufacturer. When 
any explosive material has deteriorated it is to be destroyed in 
accordance with the advice or instructions of the manufacturer. The area 
surrounding magazines is to be kept clear of rubbish, brush, dry grass, 
or trees (except live trees more than 10 feet tall), for not less than 
25 feet in all directions. Volatile materials are to be kept a distance 
of not less than 50 feet from outdoor magazines. Living foliage which is 
used to stabilize the earthen covering of a magazine need not be 
removed.



Sec. 555.216  Repair of magazines.

    Before repairing the interior of magazines, all explosive materials 
are to be removed and the interior cleaned. Before repairing the 
exterior of magazines, all explosive materials must be removed if there 
exists any possibility that repairs may produce sparks or flame. 
Explosive materials removed from magazines under repair must be (a) 
placed in other magazines appropriate for the storage of those explosive 
materials under this subpart, or (b) placed a safe distance from the 
magazines under repair where they are to be properly guarded and 
protected until the repairs have been completed.



Sec. 555.217  Lighting.

    (a) Battery-activated safety lights or battery-activated safety 
lanterns may be used in explosives storage magazines.
    (b) Electric lighting used in any explosives storage magazine must 
meet the standards prescribed by the ``National Electrical Code,'' 
(National Fire Protection Association, NFPA 70-81), for the conditions 
present in the magazine at any time. All electrical switches are to be 
located outside of the magazine and also meet the standards prescribed 
by the National Electrical Code.
    (c) Copies of invoices, work orders or similar documents which 
indicate the lighting complies with the National Electrical Code must be 
available for inspection by ATF officers.



Sec. 555.218  Table of distances for storage of explosive materials.

----------------------------------------------------------------------------------------------------------------
 Quantity of explosives                                      Distances in feet
----------------------------------------------------------------------------------------------------------------
                           Inhabited buildings   Public highways with  Passenger railways--     Separation of
                         -----------------------   traffic volume of   public highways with       magazines
                                                     3000 or fewer       traffic volume of  --------------------
                                                     vehicles/day         more than 3,000
Pounds over   Pounds not                        ----------------------     vehicles/day
                 over       Barri      Unbarri                                                 Barri    Unbarri
                            caded       caded      Barri     Unbarri  ----------------------   caded     caded
                                                   caded      caded      Barri     Unbarri
                                                                         caded      caded
----------------------------------------------------------------------------------------------------------------
         0            5         70        140          30         60         51        102         6         12
         5           10         90        180          35         70         64        128         8         16
        10           20        110        220          45         90         81        162        10         20
        20           30        125        250          50        100         93        186        11         22
        30           40        140        280          55        110        103        206        12         24
        40           50        150        300          60        120        110        220        14         28
        50           75        170        340          70        140        127        254        15         30

[[Page 172]]

 
        75          100        190        380          75        150        139        278        16         32
       100          125        200        400          80        160        150        300        18         36
       125          150        215        430          85        170        159        318        19         38
       150          200        235        470          95        190        175        350        21         42
       200          250        255        510         105        210        189        378        23         46
       250          300        270        540         110        220        201        402        24         48
       300          400        295        590         120        240        221        442        27         54
       400          500        320        640         130        260        238        476        29         58
       500          600        340        680         135        270        253        506        31         62
       600          700        355        710         145        290        266        532        32         64
       700          800        375        750         150        300        278        556        33         66
       800          900        390        780         155        310        289        578        35         70
       900        1,000        400        800         160        320        300        600        36         72
     1,000        1,200        425        850         165        330        318        636        39         78
     1,200        1,400        450        900         170        340        336        672        41         82
     1,400        1,600        470        940         175        350        351        702        43         86
     1,600        1,800        490        980         180        360        366        732        44         88
     1,800        2,000        505      1,010         185        370        378        756        45         90
     2,000        2,500        545      1,090         190        380        408        816        49         98
     2,500        3,000        580      1,160         195        390        432        864        52        104
     3,000        4,000        635      1,270         210        420        474        948        58        116
     4,000        5,000        685      1,370         225        450        513      1,026        61        122
     5,000        6,000        730      1,460         235        470        546      1,092        65        130
     6,000        7,000        770      1,540         245        490        573      1,146        68        136
     7,000        8,000        800      1,600         250        500        600      1,200        72        144
     8,000        9,000        835      1,670         255        510        624      1,248        75        150
     9,000       10,000        865      1,730         260        520        645      1,290        78        156
    10,000       12,000        875      1,750         270        540        687      1,374        82        164
    12,000       14,000        885      1,770         275        550        723      1,446        87        174
    14,000       16,000        900      1,800         280        560        756      1,512        90        180
    16,000       18,000        940      1,880         285        570        786      1,572        94        188
    18,000       20,000        975      1,950         290        580        813      1,626        98        196
    20,000       25,000      1,055      2,000         315        630        876      1,752       105        210
    25,000       30,000      1,130      2,000         340        680        933      1,866       112        224
    30,000       35,000      1,205      2,000         360        720        981      1,962       119        238
    35,000       40,000      1,275      2,000         380        760      1,026      2,000       124        248
    40,000       45,000      1,340      2,000         400        800      1,068      2,000       129        258
    45,000       50,000      1,400      2,000         420        840      1,104      2,000       135        270
    50,000       55,000      1,460      2,000         440        880      1,140      2,000       140        280
    55,000       60,000      1,515      2,000         455        910      1,173      2,000       145        290
    60,000       65,000      1,565      2,000         470        940      1,206      2,000       150        300
    65,000       70,000      1,610      2,000         485        970      1,236      2,000       155        310
    70,000       75,000      1,655      2,000         500      1,000      1,263      2,000       160        320
    75,000       80,000      1,695      2,000         510      1,020      1,293      2,000       165        330
    80,000       85,000      1,730      2,000         520      1,040      1,317      2,000       170        340
    85,000       90,000      1,760      2,000         530      1,060      1,344      2,000       175        350
    90,000       95,000      1,790      2,000         540      1,080      1,368      2,000       180        360
    95,000      100,000      1,815      2,000         545      1,090      1,392      2,000       185        370
   100,000      110,000      1,835      2,000         550      1,100      1,437      2,000       195        390
   110,000      120,000      1,855      2,000         555      1,110      1,479      2,000       205        410
   120,000      130,000      1,875      2,000         560      1,120      1,521      2,000       215        430
   130,000      140,000      1,890      2,000         565      1,130      1,557      2,000       225        450
   140,000      150,000      1,900      2,000         570      1,140      1,593      2,000       235        470
   150,000      160,000      1,935      2,000         580      1,160      1,629      2,000       245        490
   160,000      170,000      1,965      2,000         590      1,180      1,662      2,000       255        510
   170,000      180,000      1,990      2,000         600      1,200      1,695      2,000       265        530
   180,000      190,000      2,010      2,010         605      1,210      1,725      2,000       275        550
   190,000      200,000      2,030      2,030         610      1,220      1,755      2,000       285        570
   200,000      210,000      2,055      2,055         620      1,240      1,782      2,000       295        590
   210,000      230,000      2,100      2,100         635      1,270      1,836      2,000       315        630
   230,000      250,000      2,155      2,155         650      1,300      1,890      2,000       335        670
   250,000      275,000      2,215      2,215         670      1,340      1,950      2,000       360        720
   275,000      300,000      2,275      2,275         690      1,380      2,000      2,000       385        770
----------------------------------------------------------------------------------------------------------------


[[Page 173]]

 Table: American Table of Distances for Storage of Explosives (December 
      1910), as Revised and Approved by the Institute of Makers of 
                         Explosives--July, 1991.

        Notes to the Table of Distances for Storage of Explosives

    (1) Terms found in the table of distances for storage of explosive 
materials are defined in Sec. 555.11.
    (2) When two or more storage magazines are located on the same 
property, each magazine must comply with the minimum distances specified 
from inhabited buildings, railways, and highways, and, in addition, they 
should be separated from each other by not less than the distances shown 
for ``Separation of Magazines,'' except that the quantity of explosives 
contained in cap magazines shall govern in regard to the spacing of said 
cap magazines from magazines containing other explosives. If any two or 
more magazines are separated from each other by less than the specified 
``Separation of Magazines'' distances, then such two or more magazines, 
as a group, must be considered as one magazine, and the total quantity 
of explosives stored in such group must be treated as if stored in a 
single magazine located on the site of any magazine of the group, and 
must comply with the minimum of distances specified from other 
magazines, inhabited buildings, railways, and highways.
    (3) All types of blasting caps in strengths through No. 8 cap should 
be rated at 1\1/2\ lbs. (1.5 lbs.) of explosives per 1,000 caps. For 
strengths higher than No. 8 cap, consult the manufacturer.
    (4) For quantity and distance purposes, detonating cord of 50 or 60 
grains per foot should be calculated as equivalent to 9 lbs. of high 
explosives per 1,000 feet. Heavier or lighter core loads should be rated 
proportionately.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45003, Aug. 24, 1998; T.D. ATF-446, 66 FR 16602, Mar. 27, 2001; T.D. 
ATF-446a, 66 FR 19089, Apr. 13, 2001]



Sec. 555.219  Table of distances for storage of low explosives.

------------------------------------------------------------------------
           Pounds                  From       From public
-----------------------------   inhabited     railroad and   From above
                                 building       highway        ground
     Over         Not over       distance       distance      magazine
                                  (feet)         (feet)        (feet)
------------------------------------------------------------------------
        0          1,000            75             75             50
    1,000          5,000           115            115             75
    5,000         10,000           150            150            100
   10,000         20,000           190            190            125
   20,000         30,000           215            215            145
   30,000         40,000           235            235            155
   40,000         50,000           250            250            165
   50,000         60,000           260            260            175
   60,000         70,000           270            270            185
   70,000         80,000           280            280            190
   80,000         90,000           295            295            195
   90,000        100,000           300            300            200
  100,000        200,000           375            375            250
  200,000        300,000           450            450            300
------------------------------------------------------------------------



Sec. 555.220  Table of separation distances of ammonium nitrate and 
blasting agents from explosives or blasting agents.

Table: Department of Defense Ammunition and Explosives Standards, Table 
                  5-4.1 Extract; 4145.27 M, March 1969

------------------------------------------------------------------------
    Donor weight (pounds)     Minimum separation distance
----------------------------- of acceptor from donor when     Minimum
                                    barricaded (ft.)        thickness of
                             -----------------------------   artificial
     Over         Not over       Ammonium      Blasting      barricades
                                 nitrate         agent         (in.)
------------------------------------------------------------------------
                     100             3             11            12
      100            300             4             14            12
      300            600             5             18            12
      600          1,000             6             22            12
    1,000          1,600             7             25            12
    1,600          2,000             8             29            12
    2,000          3,000             9             32            15
    3,000          4,000            10             36            15
    4,000          6,000            11             40            15
    6,000          8,000            12             43            20
    8,000         10,000            13             47            20
   10,000         12,000            14             50            20
   12,000         16,000            15             54            25
   16,000         20,000            16             58            25
   20,000         25,000            18             65            25
   25,000         30,000            19             68            30
   30,000         35,000            20             72            30
   35,000         40,000            21             76            30
   40,000         45,000            22             79            35
   45,000         50,000            23             83            35
   50,000         55,000            24             86            35
   55,000         60,000            25             90            35
   60,000         70,000            26             94            40
   70,000         80,000            28            101            40
   80,000         90,000            30            108            40
   90,000        100,000            32            115            40
  100,000        120,000            34            122            50
  120,000        140,000            37            133            50
  140,000        160,000            40            144            50
  160,000        180,000            44            158            50
  180,000        200,000            48            173            50
  200,000        220,000            52            187            60
  220,000        250,000            56            202            60
  250,000        275,000            60            216            60
  275,000        300,000            64            230            60
------------------------------------------------------------------------


[[Page 174]]

Table: National Fire Protection Association (NFPA) Official Standard No. 
                                492, 1968

Notes of Table of Separation Distances of Ammonium Nitrate and Blasting 
                Agents From Explosives or Blasting Agents

    (1) This table specifies separation distances to prevent explosion 
of ammonium nitrate and ammonium nitrate-based blasting agents by 
propagation from nearby stores of high explosives or blasting agents 
referred to in the table as the ``donor.'' Ammonium nitrate, by itself, 
is not considered to be a donor when applying this table. Ammonium 
nitrate, ammonium nitrate-fuel oil or combinations thereof are 
acceptors. If stores of ammonium nitrate are located within the 
sympathetic detonation distance of explosives or blasting agents, one-
half the mass of the ammonium nitrate is to be included in the mass of 
the donor.
    (2) When the ammonium nitrate and/or blasting agent is not 
barricaded, the distances shown in the table must be multiplied by six. 
These distances allow for the possibility of high velocity metal 
fragments from mixers, hoppers, truck bodies, sheet metal structures, 
metal containers, and the like which may enclose the ``donor.'' Where 
explosives storage is in bullet-resistant magazines or where the storage 
is protected by a bullet-resistant wall, distances and barricade 
thicknesses in excess of those prescribed in the table in Sec. 555.218 
are not required.
    (3) These distances apply to ammonium nitrate that passes the 
insensitivity test prescribed in the definition of ammonium nitrate 
fertilizer issued by the Fertilizer Institute.\1\ Ammonium nitrate 
failing to pass the test must be stored at separation distances in 
accordance with the table in Sec. 555.218.
---------------------------------------------------------------------------

    \1\ Definition and Test Procedures for Ammonium Nitrate Fertilizer, 
Fertilizer Institute 1015-18th St. N.W. Washington, DC 20036.
---------------------------------------------------------------------------

    (4) These distances apply to blasting agents which pass the 
insensitivity test prescribed in regulations of the U.S. Department of 
Transportation (49 CFR part 173).
    (5) Earth or sand dikes, or enclosures filled with the prescribed 
minimum thickness of earth or sand are acceptable artificial barricades. 
Natural barricades, such as hills or timber of sufficient density that 
the surrounding exposures which require protection cannot be seen from 
the ``donor'' when the trees are bare of leaves, are also acceptable.
    (6) For determining the distances to be maintained from inhabited 
buildings, passenger railways, and public highways, use the table in 
Sec. 555.218.



Sec. 555.221  Requirements for display fireworks, pyrotechnic 

compositions, and explosive materials used in assembling 
fireworks or articles pyrotechnic.

    (a) Display fireworks, pyrotechnic compositions, and explosive 
materials used to assemble fireworks and articles pyrotechnic shall be 
stored at all times as required by this Subpart unless they are in the 
process of manufacture, assembly, packaging, or are being transported.
    (b) No more than 500 pounds (227 kg) of pyrotechnic compositions or 
explosive materials are permitted at one time in any fireworks mixing 
building, any building or area in which the pyrotechnic compositions or 
explosive materials are pressed or otherwise prepared for finishing or 
assembly, or any finishing or assembly building. All pyrotechnic 
compositions or explosive materials not in immediate use will be stored 
in covered, non-ferrous containers.
    (c) The maximum quantity of flash powder permitted in any fireworks 
process building is 10 pounds (4.5 kg).
    (d) All dry explosive powders and mixtures, partially assembled 
display fireworks, and finished display fireworks shall be removed from 
fireworks process buildings at the conclusion of a day's operations and 
placed in approved magazines.

[T.D. ATF-293, 55 FR 3722, Feb. 5, 1990, as amended by T.D. ATF-400, 63 
FR 45004, Aug. 24, 1998]



Sec. 555.222  Table of distances between fireworks process buildings 
and between fireworks process and fireworks nonprocess buildings.

------------------------------------------------------------------------
   Net weight of fireworks \1\     Display fireworks  Consumer fireworks
            (pounds)                  \2\ (feet)          \3\ (feet)
------------------------------------------------------------------------
 0-100..........................  57................  37
101-200.........................  69................  37
201-300.........................  77................  37
301-400.........................  85................  37
401-500.........................  91................  37
Above 500.......................  Not permitted \4\   Not permitted \4\
                                   \5\.                \5\
------------------------------------------------------------------------
\1\ Net weight is the weight of all pyrotechnic compositions, and
  explosive materials and fuse only.
\2\ The distances in this column apply only with natural or artificial
  barricades. If such barricades are not used, the distances must be
  doubled.

[[Page 175]]

 
\3\ While consumer fireworks or articles pyrotechnic in a finished state
  are not subject to regulation, explosive materials used to manufacture
  or assemble such fireworks or articles are subject to regulation.
  Thus, fireworks process buildings where consumer fireworks or articles
  pyrotechnic are being processed shall meet these requirements.
\4\ A maximum of 500 pounds of in-process pyrotechnic compositions,
  either loose or in partially-assembled fireworks, is permitted in any
  fireworks process building. Finished display fireworks may not be
  stored in a fireworks process building.
\5\ A maximum of 10 pounds of flash powder, either in loose form or in
  assembled units, is permitted in any fireworks process building.
  Quantities in excess of 10 pounds must be kept in an approved
  magazine.


[T.D. ATF-293, 55 FR 3723, Feb. 5, 1990, as amended by T.D. ATF-400, 63 
FR 45004, Aug. 24, 1998]



Sec. 555.223  Table of distances between fireworks process buildings 
and other specified areas.

   Distance from Passenger Railways, Public Highways, Fireworks Plant
  Buildings used to Store Consumer Fireworks and Articles Pyrotechnic,
Magazines and Fireworks Shipping Buildings, and Inhabited Buildings. \3\
                                 \4\ \5\
------------------------------------------------------------------------
   Net weight of fireworks \1\     Display fireworks  Consumer fireworks
            (pounds)                  \1\ (feet)          \2\ (feet)
------------------------------------------------------------------------
 0-100..........................  200...............  25
101-200.........................  200...............  50
201-300.........................  200...............  50
301-400.........................  200...............  50
401-500.........................  200...............  50
Above 500.......................  Not permitted.....  Not permitted.
------------------------------------------------------------------------
\1\ Net weight is the weight of all pyrotechnic compositions, and
  exposive materials and fuse only.
\2\ While consumer fireworks or articles pyrotechnic in a finished state
  are not subject to regulation, explosive materials used to manufacture
  or assemble such fireworks or articles are subject to regulation.
  Thus, fireworks process buildings where consumer fireworks or articles
  pyrotechnic are being processed shall meet these requirements.
\3\ This table does not apply to the separation distances between
  fireworks process buildings (see Sec. 555.222) and between magazines
  (see Sec. Sec. 555.218 and 555.224).
\4\ The distances in this table apply with or without artificial or
  natural barricades or screen barricades. However, the use of
  barricades is highly recommended.
\5\ No work of any kind, except to place or move items other than
  explosive materials from storage, shall be conducted in any building
  designated as a warehouse. A fireworks plant warehouse is not subject
  to Sec. 555.222 or this section, tables of distances.


[T.D. ATF-293, 55 FR 3723, Feb. 5, 1990, as amended by T.D. ATF-400, 63 
FR 45004, Aug. 24, 1998]



Sec. 555.224  Table of distances for the storage of display fireworks 
(except bulk salutes).

------------------------------------------------------------------------
                                        Distance between       Distance
                                     magazine and inhabited    between
Net weight of firework \1\ (pounds)    building, passenger    magazines
                                       railway, or public      \2\ \3\
                                     highway \3\ \4\ (feet)     (feet)
------------------------------------------------------------------------
0-1000.............................  150...................          100
1001-5000..........................  230...................          150
5001-10000.........................  300...................          200
Above 10000........................  Use table Sec. ...........
                                      555.218
------------------------------------------------------------------------
\1\ Net weight is the weight of all pyrotechnic compositions, and
  exposive materials and fuse only.
\2\ For the purposes of applying this table, the term ``magazine'' also
  includes fireworks shipping buildings for display fireworks.
\3\ For fireworks storage magazines in use prior to (30 days from the
  date of publication of the final rule in the Federal Register), the
  distances in this table may be halved if properly barricaded between
  the magazine and potential receptor sites.
\4\ This table does not apply to the storage of bulk salutes. Use table
  at Sec. 555.218.


[T.D. ATF-293, 55 FR 3723, Feb. 5, 1990, as amended by T.D. ATF-400, 63 
FR 45004, Aug. 24, 1998]

[[Page 176]]



 SUBCHAPTER D_MISCELLANEOUS REGULATIONS RELATING TO ALCOHOL AND TOBACCO





PART 646_CONTRABAND CIGARETTES--Table of Contents




Sec.

                                 General

646.141 Scope of part.
646.142 Territorial extent.
646.143 Meaning of terms.

                                 Records

646.146 General requirements.
646.147 Required information.
646.150 Retention of records.

       Other Provisions Relating to the Distribution of Cigarettes

646.153 Authority of appropriate ATF officers to enter business 
          premises.

                       Penalities and Forfeitures

646.154 Penalties.
646.155 Forfeitures.

    Authority: 18 U.S.C. 2341-2346, unless otherwise noted.

    Source: 45 FR 48612, July 21, 1980, unless otherwise noted. 
Redesignated by T.D. ATF-487, 68 FR 3753, Jan. 24, 2003.

    Editorial Note: Nomenclature changes to part 646 appear by T.D. ATF-
487, 68 FR 4753, Jan. 24, 2003.

                                 General



Sec. 646.141  Scope of part.

    The regulations in this subpart relate to the distribution of 
cigarettes in excess of 60,000 in a single transaction.



Sec. 646.142  Territorial extent.

    The provisions of the regulations in this part apply in the several 
States of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, and the Virgin Islands.



Sec. 646.143  Meaning of terms.

    When used in this part, terms are defined as follows in this 
section. Words in the plural shall include the singular, and vice versa. 
Words indicating the masculine gender shall include the feminine. The 
terms ``includes'' and ``including'' do not exclude other things not 
named which are in the same general class or are otherwise within the 
scope of the term defined.
    Appropriate ATF officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.28, Delegation of the Director's Authorities in 27 CFR Parts 45 and 
646.
    Business premises. When used with respect to a distributor, the 
property on which the cigarettes are kept or stored. The business 
premises includes the property where the records of a distributor are 
kept.
    Common or contract carrier. A carrier holding a certificate of 
convenience and necessity, a permit for contract carrier by motor 
vehicle, or other valid operating authority under the Interstate 
Commerce Act, or under equivalent operating authority from a regulatory 
agency of the United States or of any State.
    Contraband cigarettes. Any quantity of cigarettes in excess of 
60,000, if--
    (a) The cigarettes bear no evidence of the payment of applicable 
State cigarette taxes in the State where the cigarettes are found;
    (b) The State in which the cigarettes are found requires a stamp, 
impression, or other indication to be placed on packages or other 
containers of cigarettes to evidence payment of cigarette taxes; and
    (c) The cigarettes are in the possession of any person other than an 
exempted person.
    Disposition. The movement of cigarettes from a person's business 
premises, wherever situated, by shipment or other means of distribution.
    Distribute. To sell, ship, issue, give, transfer, or otherwise 
dispose of.
    Distributor. Any person who distributes more than 60,000 cigarettes 
in a single transaction.
    Exempted person. Any person who is--
    (a) Holding a permit issued pursuant to Chapter 52 of the Internal 
Revenue Code of 1954 as a manufacturer of tobacco products or as an 
export warehouse proprietor;

[[Page 177]]

    (b) Operating a customs bonded warehouse pursuant to section 311 or 
555 of the Tariff Act of 1930 (19 U.S.C. 1311 or 1555);
    (c) An agent of a tobacco products manufacturer, an export warehouse 
proprietor, or an operator of a customs bonded warehouse;
    (d) A common or contract carrier transporting the cigarettes 
involved under a proper bill of lading or freight bill which states the 
quantity, source, and destination of the cigarettes;
    (e) Licensed or otherwise authorized by the State, in which he 
possesses cigarettes, to account for and pay cigarette taxes imposed by 
that State; and who has complied with the accounting and payment 
requirements relating to his license or authorization with respect to 
the cigarettes involved; or
    (f) An agent of the United States, of an individual State, or of a 
political subdivision of a State and having possession of cigarettes in 
connection with the performance of official duties.
    (g) Operating within a foreign-trade zone established under 19 
U.S.C., section 81b, when the cigarettes involved have been entered into 
the zone under zone-restricted status or, in respect to foreign 
cigarettes, have been admitted into the zone but have not been entered 
in the United States.
    Person. Any individual, corporation, company, association, firm, 
partnership, society, or joint stock company.
    State. A State of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, or the Virgin Islands.

[45 FR 48612, July 21, 1980, as amended by T.D. ATF-472, 67 FR 8881, 
Feb. 27, 2002]

                                 Records



Sec. 646.146  General requirements.

    Each distributor of cigarettes shall keep copies of invoices, bills 
of lading, or other suitable commercial records relating to each 
disposition of more than 60,000 cigarettes. Dividing a single agreement 
for the disposition of more than 60,000 cigarettes into the delivery of 
smaller components of 60,000 cigarettes or less does not exempt the 
distributor from the recordkeeping requirements of this part. The 
distributor shall include the information prescribed in Sec. 646.147 in 
his commercial records of disposition.



Sec. 646.147  Required information.

    (a) Distributors who are exempted persons. Each distributor who is 
an exempted person as defined in Sec. 646.143 shall show the following 
information in his commercial records.
    (1) For each disposition of more than 60,000 cigarettes to an 
exempted person; or for each disposition of more than 60,000 cigarettes 
to a person who is not an exempted person and which is delivered by the 
distributor to the recipient's place of business, the distributor shall 
show on dated records--
    (i) The full name of the purchaser (or the recipient if there is no 
purchaser);
    (ii) The street address (including city and state) to which the 
cigarettes are destined; and
    (iii) The quantity of cigarettes disposed of.
    (2) For each disposition of more than 60,000 cigarettes, other than 
the dispositions specified in paragraph (a)(1) of this section, the 
distributor shall show on dated records--
    (i) The full name of the purchaser (if any);
    (ii) The name, address (including city and state), and signature of 
the person receiving the cigarettes;
    (iii) The street address (including city and state) to which the 
cigarettes are destined;
    (iv) The quantity of cigarettes disposed of;
    (v) The driver's license number of the individual receiving the 
cigarettes;
    (vi) The license number of the vehicle in which the cigarettes are 
removed from the distributor's business premises;
    (vii) A declaration by the individual receiving the cigarettes of 
the specific purpose of receipt (such as personal use, resale, delivery 
to another person, etc.); and
    (viii) A declaration by the person receiving the cigarettes of the 
name and address of his principal when he is acting as an agent.
    (b) Distributors who are not exempted persons. Each distributor who 
is not an exempted person as defined in Sec. 646.143 shall show on 
dated commercial records the information specified in

[[Page 178]]

paragraphs (a)(2) (i) through (viii) of this section for each 
disposition of more than 60,000 cigarettes.

(Approved by the Office of Management and Budget under control number 
1512-0391)

[45 FR 48612, July 21, 1980, as amended by T.D. ATF-172, 49 FR 14943, 
Apr. 16, 1984]



Sec. 646.150  Retention of records.

    (a) General. Each distributor of cigarettes shall retain the records 
required by Sec. Sec. 646.146 and 646.147 for three years following the 
close of the year in which the records are made. The distributor shall 
keep the required records on his business premises.
    (b) Shorter retention periods. The appropriate ATF officer may, 
pursuant to an application submitted by a distributor, approve a shorter 
retention period where--
    (1) The distributor requesting the shorter retention period is an 
agent of a tobacco products manufacturer;
    (2) The tobacco products manufacturer will keep the required record 
for each disposition of more than 60,000 cigarettes from the agent's 
premises for the full retention period specified in paragraph (a) of 
this section; and
    (3) The approval of a shorter retention period will not unduly 
hinder the administration of enforcement of this subpart.
    (c) Application requirements. Each distributor proposing to employ a 
shorter retention period shall submit a written application, in 
duplicate, to the appropriate ATF officer. A distributor may not employ 
a shorter retention period until approval is received from the 
appropriate ATF officer. Each application should indicate the duration 
of the proposed retention period and should include the information 
required by paragraph (b) of this section.

[45 FR 48612, July 21, 1980, as amended by T.D. ATF-472, 67 FR 8880, 
8881, Feb. 27, 2002]

       Other Provisions Relating to the Distribution of Cigarettes



Sec. 646.153  Authority of appropriate ATF officers to enter business 
premises.

    Any appropriate ATF officer may enter the business premises of any 
distributor of cigarettes to inspect the records required by Sec. Sec. 
646.146 through 646.147 or to inspect any cigarettes stored on the 
premises--
    (a) Pursuant to duly issued search warrant or an administrative 
inspection warrant; or
    (b) Upon the consent of the distributor to enter his premises.

[45 FR 48612, July 21, 1980, as amended by T.D. ATF-472, 67 FR 8881, 
Feb. 27, 2002]

                        Penalties and Forfeitures



Sec. 646.154  Penalties.

    (a) Any person who knowingly ships, transports, receives, possesses, 
sells, distributes, or purchases contraband cigarettes shall be fined 
not more than $100,000 or imprisoned not more than five years, or both.
    (b) Any person who knowingly violates any regulation contained in 
this part or makes any false statement or misrepresentation with respect 
to the information required to be recorded by this part shall be fined 
not more than $5,000 or imprisoned not more than three years, or both.



Sec. 646.155  Forfeitures.

    (a) Any contraband cigarettes involved in any violation of the 
provisions of 18 U.S.C. chapter 114 shall be subject to seizure and 
forfeiture. All provisions of the Internal Revenue Code of 1954 (title 
26 U.S.C.) relating to the seizure, forfeiture, and disposition of 
firearms, as defined in section 5845(a) of that Code, shall, so far as 
applicable, extend to seizures and forfeitures of contraband cigarettes 
under the provisions of 18 U.S.C. chapter 114.
    (b) Any vessel, vehicle or aircraft used to transport, carry, 
convey, or conceal or possess any contraband cigarettes with respect to 
which there has been committed any violation of any provision of 18 
U.S.C. chapter 114 or the regulations in this subpart shall be subject 
to seizure and forfeiture under the Customs laws, as provided by the Act 
of August 9, 1939 (49 U.S.C. 781-788).

(18 U.S.C. 2344; 53 Stat. 1291 (49 U.S.C. 782))