[Federal Register Volume 65, Number 219 (Monday, November 13, 2000)]
[Proposed Rules]
[Pages 67669-67670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28979]



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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 55

[Notice No. 906]
RIN 1512-AC25


Identification Markings Placed on Imported Explosive Materials 
(2000R-238P)

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

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is 
considering amending the regulations to require licensed importers to 
legibly identify by marking all imported explosive materials. Based on 
a petition we have received, we wish to gather information by inviting 
comments from the public and industry whether the regulations should be 
amended.

DATES: Comments must be received on or before January 12, 2001.

ADDRESSES: Send written comments to: Chief, Regulations Division; 
Bureau of Alcohol, Tobacco and Firearms; P.O. Box 50221; Washington, DC 
20091-0221; ATTN: Notice No. 906. Written comments must be signed. 
Submit e-mail comments to: [email protected]. E-mail comments 
must contain your name, mailing address, and e-mail address. They must 
also reference this notice number and be legible when printed on not 
more than three pages 8\1/2\"  x  11" in size. We will treat e-mail as 
originals and we will not acknowledge receipt of e-mail. See the Public 
Participation section of this document for alternative means of 
submitting written comments.

FOR FURTHER INFORMATION CONTACT: James P. Ficaretta, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts 
Avenue, NW., Washington, DC 20226 (202-927-8210).

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Alcohol, Tobacco and Firearms (ATF) is responsible 
for implementing Title XI, Regulation of Explosives (18 U.S.C. Chapter 
40), of the Organized Crime Control Act of 1970. One of the stated 
purposes of the Act is to reduce the hazards to persons and property 
arising from the misuse of explosive materials. Under section 847 of 
title 18, United States Code, the Secretary of the Treasury ``may 
prescribe such rules and regulations as he deems reasonably necessary 
to carry out the provisions of this chapter.'' Regulations that 
implement the provisions of chapter 40 are contained in title 27, Code 
of Federal Regulations (CFR), part 55.
    Section 55.109 requires licensed manufacturers of explosive 
materials to legibly identify by marking all explosive materials 
manufactured for sale or distribution. The term ``explosive 
materials,'' as defined in section 55.11, means explosives, blasting 
agents, water gels and detonators. The term includes, but is not 
limited to, all items in the ``List of Explosive Materials'' provided 
for in section 55.23. Section 55.202 provides that there are three 
classes of explosive materials: (1) high explosives (e.g., dynamite, 
flash powders, and bulk salutes), (2) low explosives (e.g., black 
powder, safety fuses, igniters, igniter cords, fuse lighters, and 
display fireworks (except bulk salutes)), and (3) blasting agents 
(e.g., ammonium nitrate-fuel oil and certain water-gels).
    The marks required by section 55.109 include the identity of the 
manufacturer and the location, date, and shift of manufacture. This 
section also provides that licensed manufacturers must place the 
required marks on each cartridge, bag, or other immediate container of 
explosive materials for sale or distribution, as well as on the outside 
container, if any, used for their packaging.
    Exceptions to the marking requirements are provided in section 
55.109(b). Licensed manufacturers of blasting caps are only required to 
place the required identification marks on the containers used for the 
packaging of blasting caps. In addition, 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 part 55. Finally, section 55.109(b) provides that the 
Director may authorize the use of other means of identification on 
fireworks instead of the required markings specified above.

Petition

    The Institute of Makers of Explosives (IME) filed a petition with 
ATF, dated March 7, 2000, requesting an amendment of the regulations to 
require licensed importers to place the same identification marks on 
imported explosive materials that are currently required for explosive 
materials manufactured in the United States. As stated in the petition, 
the IME is the safety association of the commercial explosives 
industry. Its mission is to promote safety and the protection of 
employees, users, the public and the environment, and to encourage the 
adoption of uniform rules and regulations in the manufacture, 
transportation, storage, handling, use, and disposal of explosive 
materials used in blasting and other essential operations.
    According to the petitioner, the commerce of explosives is a global 
enterprise and it expects the quantity of imports to increase over 
time. For example, the petitioner states that between 1994 and 1997, 
imports of cast boosters (high explosives) increased 14-fold to account 
for approximately 17 percent of all high explosives used annually in 
the U.S. The IME further states that while unmarked high explosives may 
have entered the United States over the years, it was not until last 
year that the association became aware of significant quantities of 
unmarked high explosives being imported into the country. The IME 
contends that by the end of 1999 about two million unmarked units had 
been distributed in the United States. The petitioner further states 
that many more thousands of tons of these high explosives are expected 
to be imported into the U.S. in the near future. Without a change in 
the regulations, the IME is concerned that these explosives will be 
entered into commerce in the U.S. without marks of identification, 
posing significant safety and security risks to the public. Although 
the IME has informed ATF that many of its member companies importing 
explosives into the U.S. mark their imported explosive materials in an 
effort to ensure traceability and accountability of the materials, it 
believes that all imported explosive materials should be appropriately 
identified. Therefore, it petitioned that the Federal explosives 
regulations be amended.
    By letter dated August 2, 2000, the IME amended its petition to 
narrow the scope to importers of high explosives and blasting agents. 
The IME stated that it did not understand that the scope of its initial 
petition would apply to importers of products other than high 
explosives and blasting agents, i.e., low explosives. The IME noted 
that it has a specific standard that high explosives and blasting 
agents be marked with a date/plant/shift code.

Discussion

    In an effort to protect the public from the misuse of explosive 
materials, ATF generally requires that explosives

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manufacturers mark all explosive materials manufactured with specific 
information, including the name of manufacturer, and the location, 
date, and shift of manufacture. Generally, licensees and permittees 
must record the manufacturer's marks of identification on all 
explosives they receive. These requirements help ensure that explosive 
materials can be effectively traced for criminal enforcement purposes, 
i.e., the explosives can be tracked through the records kept by 
licensees and permittees. This process often provides valuable 
information in explosion and bombing investigations and is useful for 
inspection purposes in verifying inventory and proper conduct of 
business practices. However, the regulations do not require that 
imported explosive materials be marked. Therefore, we are requesting 
information and comments from interested persons on the desirability 
and feasibility of marking imported explosive materials.
    Although ATF is soliciting comments on the following specific 
questions, we are also requesting any relevant information on the 
subject. 1. Should explosive materials imported into the United States 
contain identification markings?
    2. Should all imported explosive materials be marked, or should 
certain classes of explosive materials, such as low explosives, be 
exempt? If you believe certain classes of explosives should be exempt 
from marking, please provide the reason(s) why such an exemption is 
consistent with public safety.
    3. What identification marks, if any, are currently being placed on 
imported explosive materials?
    4. What information should appear on imported explosive materials? 
ATF believes that the name and address of the importer, the name of the 
country in which the explosive materials were manufactured, and the 
date that the explosive materials were manufactured would be 
sufficient.
    5. Assuming that any required identification marks must be placed 
on each cartridge, bag, or other immediate container of explosive 
materials that are imported, as well as on any outside container used 
for their packaging, is it feasible for a U.S. importer to place the 
required marks on foreign explosive materials?
    6. How many importers would be affected by a requirement to place 
identification markings on foreign explosive materials?
    7. Of those importers that would be affected by such a requirement, 
how many would be considered a ``small business concern'' as provided 
in the Small Business Act (15 U.S.C. 631, et seq.)?
    8. What would be the cost burden imposed on importers for 
purchasing or leasing equipment for marking foreign explosive 
materials, including installation and operation?
    9. What would the cost be for importers to contract with a foreign 
manufacturer to place the required marks on explosive materials on 
behalf of the importer?

Executive Order 12866

    It has been determined that this advance notice is not a 
significant regulatory action as defined by Executive Order 12866. 
Accordingly, this advance notice is not subject to the analysis 
required by this Executive Order.

Public Participation

    We are requesting comments on the petition from all interested 
persons. We are specifically requesting comments on the clarity of this 
advance notice and how it may be made easier to understand.
    Comments received on or before the closing date will be carefully 
considered. Comments received after that date will be given the same 
consideration if it is practical to do so, but assurance of 
consideration cannot be given except as to comments received on or 
before the closing date.
    ATF will not recognize any material in comments as confidential. 
Comments may be disclosed to the public. Any material that the 
commenter considers to be confidential or inappropriate for disclosure 
to the public should not be included in the comment. The name of the 
person submitting a comment is not exempt from disclosure.
    You may submit written comments by facsimile transmission to (202) 
927-8602. Facsimile comments must:
     Be legible;
     Reference this notice number;
     Be 8\1/2\"  x  11" in size;
     Contain a legible written signature; and
     Be not more than three pages long.
    We will not acknowledge receipt of facsimile transmissions. We will 
treat facsimile transmissions as originals.

Disclosure

    Copies of the petition, this advance notice, and the comments 
received 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 James P. Ficaretta, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 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. This notice is issued under the 
authority of 18 U.S.C. 846 and 847.

    Signed: September 8, 2000.
Bradley A. Buckles,
Director.
    Approved: October 11, 2000.
John P. Simpson,
Deputy Assistant Secretary, Regulatory, Tariff and Trade Enforcement.
[FR Doc. 00-28979 Filed 11-9-00; 8:45 am]
BILLING CODE 4810-31-P