[Federal Register Volume 63, Number 163 (Monday, August 24, 1998)]
[Rules and Regulations]
[Pages 44999-45004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21867]



[[Page 44999]]

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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 55

[T.D. ATF-400; Ref: Notice No. 841]
RIN 1512-AB55


Commerce in Explosives (95R-036P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of 
the Treasury.

ACTION: Final rule, Treasury decision.

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SUMMARY: This final rule amends regulations to clarify the meanings of 
terms, increase license and permit fees, eliminate duplication in 
licensing, relax the licensing requirements for on-site manufacturers, 
implement a storage notification requirement for manufacturers and 
other storers of explosives, update the theft/loss hotline number for 
reporting thefts or losses of explosives, and make minor modifications 
to regulations on storage.

DATES: This final rule is effective December 22, 1998.

FOR FURTHER INFORMATION CONTACT: Mark D. Waller, ATF Specialist, Arson 
and Explosives Programs Division, 650 Massachusetts Avenue, NW., 
Washington, DC 20226, (202) 927-8310.

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Alcohol, Tobacco and Firearms (ARF) is concerned with 
the safety of emergency personnel responding to fires on sites where 
explosives are stored. ATF is amending the regulations in 27 CFR Part 
55 to require any person who stores explosive materials to notify local 
fire departments of the locations where explosives are stored. The 
regulations are also being amended to clarify the meaning of terms; 
modify the American Table of Distances to conform with the Institute of 
Makers of Explosives (IME) latest revisions; update and incorporate 
references and definitions to reflect current government and industry 
standards; facilitate transition to the United Nations explosives 
classification codes; allow on-site manufacturers to operate under one 
manufacturer's license; and extend the term for original and renewal 
licenses and permits from one year to three years.

Notice of Proposed Rulemaking

    On October 15, 1996, ATF published in the Federal Register a notice 
of proposed rulemaking (Notice No. 841, 61 FR 53688), with a 90-day 
comment period. The comment period closed on January 13, 1997. This 
notice proposed the following amendments to the regulations:
    (1) Require anyone storing explosive materials to notify local law 
enforcement officials and fire departments of the type, magazine 
capacity, and location of each site where explosive materials are 
stored.
    (2) Increase the license and permit fees to $200 and $100 and 
renewals to $100 and $50, respectively.
    (3) Eliminate the manufacturer-limited license.
    (4) Amend the definitions of ``fireworks,'' ``highway,'' and 
``salute,'' and change the names of ``common fireworks'' to ``consumer 
fireworks'' and ``special fireworks'' to ``display fireworks'' and 
amend their definitions.
    (5) Amend the definition of ``fireworks nonprocess building'' to 
eliminate the unnecessary reference to fireworks plant warehouse.
    (6) Substantially adopt the American Table of Distances as revised 
by the Institute of Makers of Explosives.
    (7) Update the ATF hotline for reporting thefts or losses of 
explosive materials.
    ATF received 426 written comments in response to Notice No. 841. 
Comments were submitted by several major model rocketry industry groups 
such as the National Association of Rocketry (NAR) and Tripoli Rocketry 
Association (Tripoli), and their members. Comments were also submitted 
by fireworks hobbyists, small display fireworks operators, major 
explosives industry safety associations and professional organizations 
such as the Institute of Makers of Explosives (IME), the American 
Pyrotechnic Association (APA), the National Fire Protection Association 
(NFPA), and the International Association of Fire Fighters (IAFF). 
Comments were also received from concerned citizens.

Discussion of Comments--Final Rule

Subpart B--Definitions

    ATF received three comments relating to proposals to amend the 
definitions in 27 CFR 55.11. Notice No. 841 proposed defining the term 
``highway'' as ``any public street, public alley, or public road.'' 
With regard to the definition of ``highway,'' a number of commenters 
emphasized the importance of defining highway as any public road, 
public street, or public alley, and stressed that such roads should not 
include private roads on mine property, manufacturing sites, or 
construction projects. The commenters stated that the tables of 
distances set forth in the regulations are intended to apply only to 
roads financed, constructed, or maintained by government entities. 
Other comments also strongly urged ATF to clarify that the definition 
of ``highway'' includes a public funding element, so as to avoid posing 
undue burden on the explosives industry in placing magazines at minimum 
separation distances from private roads.
    In the interest of ATF's statutory obligation to consider public 
safety, if a privately financed, constructed, or maintained road is 
regularly and openly traveled by the general public, ATF may determine 
that the road is ``public'' so that it is subject to the table of 
distance requirements. This interpretation allows ATF to maintain the 
flexibility to determine on a case-by-case basis whether a private road 
is used by the general public in a manner that warrants protection by 
the table of distance requirements. Accordingly, ATF is revising the 
definition of ``highway'' proposed in Notice No. 841 to include this 
interpretation.
    ATF received two comments in response to proposals to amend various 
fireworks definitions. One commenter recommends that ATF eliminate 
confusion as to which table of distances, if any, applies to fireworks 
plant warehouses and fireworks and nonprocess buildings. The commenter 
recommends that the definition of fireworks plant warehouse be amended 
to state that no work of any kind shall be performed in the warehouse 
except for the placement in or removal of fireworks items from storage. 
The commenter also recommends that the definition of ``fireworks 
nonprocess building'' be amended to eliminate ``fireworks plant 
warehouse'' from its definition. Such warehouse would, therefore, not 
be subject to the separation distances in sections 55.222 and 55.223. 
The final rule adopts both these comments.
    The commenter also urges ATF to consider incorporating NFPA 1124, 
Code for the Manufacture, Transportation, and Storage of Fireworks into 
27 CFR Part 55, by reference. Further, the NFPA, which represents over 
65,000 individuals and 115 national organizations including individuals 
from fire departments, health care facilities, and Federal, State, and 
local governments, makes the same suggestion. The NFPA recommends that 
ATF adopt a variety of its codes and standards by reference where 
applicable, such as NFPA 495, Explosives Materials Code, NFPA 498, Safe 
Havens and Interchange Lots, NFPA 1123, Code for Fireworks Display, 
NFPA 1125, Code for the Manufacture

[[Page 45000]]

of Model and High Power Rocket Motors, NFPA 1126, Standard for the Use 
of Pyrotechnics before a Proximate Audience, and NFPA 1127, Code for 
High Power Rocketry.
    Since the standards set forth in these industry codes were not part 
of the proposals set forth in Notice No. 841, ATF is not adopting this 
comment at this time. However, ATF will consider including these 
standards in a separate notice of proposed rulemaking to be published 
at a future date.
    AFT received one comment on its proposals to amend the definitions 
of ``common'' and ``special'' fireworks by using specific United 
Nations Organization (UN) identification numbers. The commenter feels 
that the incorporation of UN numbers in conjunction with references to 
U.S. Consumer Product Safety Commission (CPSC) and U.S. Department of 
Transportation (DOT) offers little improvement over the current 
definitions.
    As an alternative, the commenter recommends that ATF consider 
definitions and classifications based on amounts and what stage the 
compositions, components, and semi-finished fireworks are in as they 
move through the manufacturing process. The commenter recommends that 
ATF provide examples distinguishing size, construction, composition, 
effect, and labeling for purposes of defining applicability of the 
regulations. ATF will not be adopting this suggestion at this time as 
it would not enhance the effective administration of the Federal 
explosives regulations.
    It has also been recommended that AFT adopt the American 
Pyrotechnic Association's (APA) Standard 87-1 with respect to defining 
and classifying fireworks for licensing and storage determinations, in 
addition to the appropriate NFPA standards and codes. ATF will consider 
incorporating these standards into the regulations in a separate notice 
of proposed rulemaking.
    In the course of examining the U.S. Department of Transportation 
(DOT) regulations, ATF determined that certain items do not fall within 
the DOT definition of consumer fireworks in terms of their suitability 
for use by the general public. Certain items present a minor explosion 
hazard and are regulated by DOT in the same manner as consumer 
fireworks. DOT classifies these articles as ``articles, pyrotechnic for 
technical purposes.'' Although it is clear that these items should be 
exempt from ATF licensing, storage, and recordkeeping requirements, 
they are intended to be used by professional pyrotechnics operators 
only, and not the general public. In Notice No. 841, ATF proposed that 
articles pyrotechnic (UN0431 and UN0432) be included in the definition 
of ``consumer fireworks.''
    In the interest of public safety, ATF has determined that a 
separate definition is needed for articles pyrotechnic, to prevent the 
general public from considering these items as suitable for other than 
professional use only. Accordingly, ATF has amended the regulations to 
clarify that the manufacture of articles pyrotechnic is regulated by 
ATF. However, finished articles pyrotechnic, though not suitable for 
general consumer use, are not subject to ATF importation, licensing, 
storage, or recordkeeping requirements. This final rule amends 
regulations in 27 CFR 55.141 to provide this exemption.
    Information regarding fused setpieces is being added to the 
definitions of ``consumer fireworks'' and ``special fireworks'' to help 
clarify their classification.

Subpart D--Licenses and Permits

    Four hundred and seventeen commenters, representing 98 percent of 
the total comments received, strongly opposed the licensing fee 
increase. ATF proposed to raise the Federal explosives users permit fee 
from $20 to 100. The majority of this group of commenters were 
affiliated with one or more of the major model rocketry associations 
such as NAR or Tripoli, whose members typically hold a Type 34 permit, 
users of low explosives.
    As an alternative to the fee increase, this group proposed that ATF 
designate a special type of hobby permit for exclusive use by high 
power model rocket hobbyists which would have a lower fee than that 
proposed by Notice No. 841. In response to these and other similar 
comments, ATF will propose in a separate notice of proposed rulemaking 
to create a separate definition and a lower permit fee for all 
``hobbyists'' who receive, transport or ship low explosive materials in 
the pursuit of recreational or sporting activities.
    No other comments were received in opposition to the proposal to 
raise license and permit fees. Statutory authority allows ATF to set 
fees up to $200 for a license or permit. Accordingly, upon the 
effective date of this final rule, the fee to engage in the business of 
importing, manufacturing, or dealing in explosive materials increases 
from $50 to $200; from $20 to $100 for a users permit; and from $2 to 
$75 for a user-limited permit.
    In addition, in conjunction with the fee increases, this final rule 
increases the term of the original license or permit from one year to 
three years.
    Two commenters expressed opposition to the proposal to eliminate 
the category of ``manufacturer-limited'' license. ATF bases its 
elimination of this license on the fact that no such licenses have been 
issued in the last 4 years and that the activities covered under the 
manufacturers-limited license are generally of an ongoing nature and 
thus would require a regular manufacturer's license. Accordingly, this 
final rule eliminates the manufacturer-limited license, as proposed in 
Notice No. 841.

Subpart K--Storage

Notification of the ``Authority Having Jurisdiction for Fire Safety'' 
of Explosives Storage Sites
    Overall, commenters favored a notification requirement to the 
appropriate local authority regarding the location of sites where 
explosives are stored. However, approximately 200 commenters opposed a 
sweeping requirement to notify all local law enforcement officials of 
storage. These commenters suggest that notification be limited to local 
emergency response personnel only, as the term ``local law enforcement 
official'' could be interpreted broadly enough to include individuals 
who may not necessarily have a need to know of such storage. This final 
rule clarifies that notification shall be made specifically to the 
``authority having jurisdiction for fire safety,'' defined as the fire 
department having jurisdiction for the area in which explosive 
materials are to be manufactured or stored. ATF will make available a 
listing of all State Fire Marshals to assist the industry in 
determining the Authority Having Jurisdiction for Fire Safety for a 
particular area. The list will also be posted on the ATF web page at 
www.atf.treas.gov.
    ATF received one comment opposing the revision of section 55.218 by 
reducing the table of distances for the storage of explosive materials 
from 2 pounds to 0 pounds on the basis that it would require persons 
handling less than 2 pounds of fireworks to conform with overly strict 
separation distances. The commenter proposes that ATF should instead 
distinguish section 55.218, Table of distances for the storage of 
explosive materials, from section 55.219, Table of distances for 
storage of low explosives, more clearly to show that section 55.218 
covers high explosives and section 55.219 covers low explosives only.

[[Page 45001]]

    ATF believes that section 55.206 adequately clarifies which table 
of distances to use for the storage of explosive materials, including 
when to use the table found at section 55.224 for the storage of 
display fireworks. Accordingly, we are not adopting this comment.
    ATF is amending the table of distances in Secs. 55.222 and 55.223 
to make it clear that, 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.

Miscellaneous

    One commenter addressed a note to section 55.224, the table of 
distances for the storage of display fireworks. Note 3 of the table of 
distances in section 55.224 allows the distances in the table to be 
halved for magazines which were in use prior to March 7, 1990, if 
properly barricaded. The commenter requests that ATF clarify that 
distances between grandfathered magazines may also be halved if 
properly barricaded.
    ATF concurs that Note 3 in the table of distances in section 55.224 
was also intended to apply to the distances between magazines which 
were in use prior to March 7, 1990. Accordingly, this final rule amends 
section 55.224 to apply Note No. 3 to the separation distances between 
magazines.
    A technical amendment is being made to Secs. 55.45(b) and 55.46(b) 
to specify the application used for user-limited special fireworks 
permits, ATF Form 5400.21. In addition, a technical amendment to 
Sec. 55.63 renames the section as ``Magazines acquired or constructed 
after permit or license is issued.'' This change is necessary to 
clarify the intent of this section which is to account for explosives 
storage facilities constructed or otherwise acquired after the license 
or permit is issued.

Executive Order 12866

    It has been determined that this final rule is not a significant 
regulatory action as defined in E.O. 12866. Therefore, a Regulatory 
Assessment is not required.

Regulatory Flexibility Act

    It is hereby certified that these final regulations will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, a regulatory flexibility analysis is not required. These 
final regulations provide clarification and consistency with industry 
terminology. In addition, the increases in license and permit fees are 
within the maximum amounts provided by the statute. Further, the burden 
placed on licensees and permittees for the collection and disclosure of 
explosives manufacture and storage information to the local authority 
having jurisdiction for explosives or fire safety is minimal.

Paperwork Reduction Act

    The collection of information contained in this final regulation 
has been reviewed and approved by the Office of Management and Budget 
in accordance with the Paperwork Reduction Act (44 U.S.C. 3507(d)) 
under control number 1512-0536. An agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a valid control number assigned by the Office of 
Management and Budget. The collection of information in this regulation 
is in 27 CFR 55.201(f). This information is required to inform fire 
departments having jurisdiction over sites where explosives are stored 
or manufactured so that they can protect emergency response personnel 
called to fire scenes where explosives may be stored. The likely 
respondents are Federal licensees and permittees who store or 
manufacture explosive materials. The estimated total annual reporting 
burden per respondent is 90 minutes. The estimated number of 
respondents is 10,057. The estimated annual frequency of responses is 
2.
    Comments concerning the accuracy of this burden estimate and 
suggestions for reducing this burden should be directed to the Office 
of Management and Budget, Attention: Desk Officer for the Department of 
Treasury, Bureau of Alcohol, Tobacco and Firearms, Office of 
Information and Regulatory Affairs, Washington, D.C., 20503, with 
copies to the Chief, Document Services Branch, Room 3450, Bureau of 
Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, N.W., 
Washington, D.C., 20226.

Disclosure

    Copies of the notice of proposed rulemaking, the written comments, 
and this final rule will be available for public inspection during 
normal business hours at: ATF Public Reading Room, Room 6480, 650 
Massachusetts Avenue, NW., Washington, DC.

Drafting Information

    The author of this document is Mark D. Waller, Arson and Explosives 
Programs Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 55

    Administrative practice and procedure, Authority delegations, 
Customs duties and inspection, Explosives, Hazardous materials, 
Imports, Penalties, Reporting and recordkeeping requirements, Safety, 
Security measures, Seizures and forfeitures, Transportation, and 
Warehouses.

Authority and Issuance

    For the reasons discussed in the preamble, ATF amends 27 CFR Part 
55 as follows:

PART 55--COMMERCE IN EXPLOSIVES

    Paragraph 1. The authority citation for 27 CFR Part 55 continues to 
read as follows:

    Authority: 18 U.S.C. 847.

    Par. 2. Section 55.11 is amended by removing the definitions for 
the terms ``Common fireworks,'' ``Licensed manufacturer-limited,'' 
``Manufacturer limited,'' and ``Special fireworks;'' by revising the 
definitions for the terms ``Bulk salutes,'' ``Fireworks,'' ``Fireworks 
nonprocess building,'' ``Fireworks plant warehouse,'' ``Fireworks 
shipping building,'' ``Highway,'' and ``Salute;'' and by adding new 
definitions for the terms ``Articles pyrotechnic,'' ``Authority having 
jurisdiction for fire safety,'' ``Consumer fireworks,'' and ``Display 
fireworks'' to read as follows:


Sec. 55.11  Meaning of terms.

* * * * *
    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.
* * * * *
    Authority having jurisdiction for fire safety. The fire department 
having jurisdiction over sites where explosives are manufactured or 
stored.
* * * * *
    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.
* * * * *
    Consumer fireworks. Any small firework device designed to produce

[[Page 45002]]

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.
* * * * *
    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.
* * * * *
    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 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 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 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.
* * * * *
    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.
* * * * *
    Salute. An aerial shell, classified as a display firework, that 
contains a charge of flash powder and is designed to produce a flash of 
light and a loud report as the pyrotechnic effect.
* * * * *
    Par. 3. Section 55.30 is amended by removing ``800-424-9555'' in 
paragraphs (a), (b), and the introductory text of paragraph (d) and 
adding in its place ``1-800-800-3855'' and by revising paragraphs 
(c)(4) and (d)(3) to read as follows:


Sec. 55.30  Reporting theft or loss of explosive materials.

* * * * *
    (c) * * *
    (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.
    (d) * * *
    (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.
    Par. 4. Section 55.41(b)(2) is revised to read as follows:


Sec. 55.41  General.

* * * * *
    (b) * * *
    (2) A separate license shall not be required of a licensed 
manufacturer with respect to his on-site manufacturing.
* * * * *
    Par. 5. Section 55.42 is revised to read as follows:


Sec. 55.42  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.
    (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.
    Par. 6. Section 55.43 is revised to read as follows:


Sec. 55.43  Permit fees.

    (a) Each applicant shall pay a fee for obtaining a permit as 
follows:
    (1) User--$100 for a three year permit.
    (2) User-limited (nonrenewable)--$75.
    (b) Each applicant for renewal of a user permit shall pay a fee of 
$50 for a three year permit.


Sec. 55.45  [Amended]

    Par. 7. Section 55.45(b) is amended by adding ``or Permit, User 
Limited Special Fireworks, ATF F 5400.21'' after ``ATF F 5400.16'' in 
the first sentence and by adding ``and ATF F 5400.21'' after ``ATF F 
5400.16'' in the last sentence.
    Par. 8. Section 55.46(b) is revised to read as follows:


Sec. 55.46  Renewal of license or permit.

* * * * *
    (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. 55.45.
    Par. 9. Section 55.51 is revised to read as follows:


Sec. 55.51  Duration of license or permit.

    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.
    Par. 10. Section 55.63 is amended by revising the heading of 
paragraph (d) to read as follows:


Sec. 55.63  Explosives magazine changes.

* * * * *
    (d) Magazines acquired or constructed after permit or license is 
issued. * * *
    Par. 11. Section 55.102 is revised to read as follows:


Sec. 55.102  Authorized operations by permittees.

    (a) In general. A permit issued under this part does not authorize 
the permittee to engage in the business of manufacturing, importing, or 
dealing in explosive materials. Accordingly, if a permittee's 
operations bring him within the definition of manufacturer, importer, 
or dealer under this part, he shall qualify for the appropriate 
license.
    (b) Distributions of surplus stocks. Permittees are not authorized 
to engage in the business of sale or distribution of explosive 
materials. However, permittees may dispose of surplus stocks of 
explosive materials to other licensees or permittees in accordance

[[Page 45003]]

with Sec. 55.103, and to nonlicensees or to nonpermittees in accordance 
with Sec. 55.105(d).
    Par. 12. Section 55.103 (a)(1) and (2) is revised to read as 
follows:


Sec. 55.103  Transactions among licensees/permittees.

    (a) General. (1) 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.
    (2) 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) shall 
verify the license or permit status of the distributee prior to the 
release of explosive materials ordered, as required by this section.
* * * * *
    Par. 13. Section 55.105(d) is revised to read as follows:


Sec. 55.105  Distributions to nonlicenses and nonpermittees.

* * * * *
    (d) 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 (b), (c), (e) and (f) of this section are fully met.
* * * * *


Sec. 55.122  [Amended]

    Par. 14. Section 55.122 is amended by removing ``special 
fireworks'' wherever it appears in paragraphs (b)(4), (b)(5), (c)(4), 
and (c)(5) and adding in its place ``display fireworks'', and by 
removing ``(sf)'' in paragraphs (b)(5) and (c)(5) and adding in its 
place ``(df)''.


Sec. 55.123  [Amended]

    Par. 15. Section 55.123 is amended by removing ``special 
fireworks'' wherever it appears in paragraphs (b)(3), (b)(4), (c)(4), 
(c)(5), and (d)(3), and adding in its place ``display fireworks'', and 
by removing ``(sf)'' in paragraphs (b)(4), (c)(5), and (d)(3) and 
adding in its place ``(df)''.


Sec. 55.124  [Amended]

    Par. 16. Section 55.124 is amended by removing ``special 
fireworks'' wherever it appears in paragraphs (b)(4), (b)(5), (c)(4), 
and (c)(5) and adding in its place ``display fireworks'', and by 
removing ``(sf)'' in paragraphs (b)(5) and (c)(5) and adding in its 
place ``(df)''.
    Par. 17. Section 55.125 is amended by revising the section heading 
and the introductory text of paragraph (a); by removing ``license or'' 
in paragraph (a)(1) and ``licensee or'' in the third sentence of 
paragraph (a); by removing paragraph (b) and redesignating paragraphs 
(c), (d), (e), and (f) as (b), (c), (d), and (e); and by revising 
redesignated paragraphs (b)(4) and (b)(5) to read as follows:


Sec. 55.125  Records maintained by permittees.

    (a) Each permittee shall take true and accurate physical 
inventories which shall include all explosive materials on hand 
required to be accounted for in the records kept under this part. The 
permittee shall take a special inventory * * *
    (b) * * *
    (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)).
* * * * *
    Par. 18. Section 55.127 is amended by revising the first sentence 
and by removing ``special fireworks'' wherever it appears and adding in 
its place ``display fireworks'' to read as follows:


Sec. 55.127  Daily summary of magazine transactions.

    In taking the inventory required by Sec. Sec. 55.122, 55.123, 
55.124, and 55.125, 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. * * *
    Par. 19. Section 55.141(a)(7) is revised to read as follows:


Sec. 55.141  Exemptions.

    (a) * * *
    (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.''
* * * * *


Sec. 55.163  [Amended]

    Par. 20. Section 55.163 is amended by removing ``licensed 
manufacturer-limited,''.
    Par. 21. Section 55.201 is amended by revising paragraph (d), by 
adding paragraph (f), and by adding a parenthetical text at the end of 
the section to read as follows:


Sec. 55.201  General.

* * * * *
    (d) The regulations set forth in Sec. Sec. 55.221 through 55.224 
pertain to the storage of display fireworks, pyrotechnic compositions, 
and explosive materials used in assembling fireworks and articles 
pyrotechnic.
* * * * *
    (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)
    Par. 22. Section 55.202(b) is revised to read as follows:


Sec. 55.202  Classes of explosive materials.

* * * * *
    (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).
* * * * *


Sec. 55.206  [Amended]

    Par. 23. Section 55.206(b) is amended by removing ``special 
fireworks'' and adding in its place ``display fireworks''.
    Par. 24. Section 55.218 is amended by removing ``Public highways 
glass A to D'' where it appears in the table heading, and adding in its 
place ``Public highways with traffic volume 3000 or less vehicles/
day''; by removing the

[[Page 45004]]

number ``2'' where it appears as the first entry in the column titled 
``Pounds over'' and adding in its place the number ``0;'' and by 
revising the source citation at the end of the table to read as 
follows:


Sec. 55.218  Table of distances for storage of explosive materials.

* * * * *
    Table: American Table of Distances for Storage of Explosives 
(December 1910), as Revised and Approved by the Institute of Makers of 
Explosives-July, 1991.
    Par. 25. Section 55.221 is amended by revising the section heading 
and paragraphs (a) and (d) to read as follows:


Sec. 55.221  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.
* * * * *
    (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.
    Par. 26. Section 55.222 is amended by removing ``special 
fireworks'' wherever it appears and adding in its place ``display 
fireworks''; by removing ``common fireworks'' wherever it appears and 
adding in its place ``consumer fireworks''; and by revising footnote 3 
at the end of the table to read as follows:


Sec. 55.222  Table of distances between fireworks process buildings and 
between fireworks process and fireworks nonprocess buildings.

* * * * *
    \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.
* * * * *
    Par. 27. Section 55.223 is amended by revising the title heading of 
the table; by removing ``special fireworks'' in the table heading and 
adding in its place ``display fireworks''; by removing ``common 
fireworks'' in the table heading and adding in its place ``consumer 
fireworks''; by revising footnote 2 and adding a new footnote 5 at the 
end of the table to read as follows:


Sec. 55.223  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\
* * * * *
    \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. 55.222) and between 
magazines (Secs. 55.218 and 55.224).
    \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. 55.222 or this section, tables of distances.


Sec. 55.224  [Amended]

    Par. 28. Section 55.224 is amended by removing ``special 
fireworks'' wherever it appears and adding in its place ``display 
fireworks'', and by adding footnote reference ``3'' after ``2'' in the 
title heading for the third column of the table.

    Signed: May 28, 1998.
John W. Magaw,
Director.
    Approved: July 14, 1998.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff, and Trade Enforcement).
[FR Doc. 98-21867 Filed 8-21-98; 8:45 am]
BILLING CODE 4810-31-M