[Federal Register Volume 67, Number 200 (Wednesday, October 16, 2002)]
[Proposed Rules]
[Pages 63862-63867]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26253]



[[Page 63862]]

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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 55

[Notice No. 956; Ref: Notice No. 906]
RIN 1512-AC25


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

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is proposing 
to amend its regulations to require licensed importers to identify by 
marking all imported explosive materials. ATF believes that the 
proposed marking requirements will help ensure that imported explosive 
materials can be effectively traced for criminal enforcement purposes. 
We are also proposing to incorporate into the regulations the 
provisions of ATF Ruling 75-35, relating to methods of marking 
containers of explosive materials. In addition, we are proposing to 
amend the regulations to remove the requirement that a licensee or 
permittee file for an amended license or permit in order to change the 
class of explosive materials described in their license or permit from 
a lower to a higher classification.

DATES: ATF must receive all comments on or before January 14, 2003.

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. 956. Written comments must be signed and 
may be of any length.
    E-mail comments may be of any length and should be submitted 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 paper that is 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 
at the end of this notice for requirements for submitting written 
comments by facsimile.

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:

I. Background

    The Bureau of Alcohol, Tobacco and Firearms (ATF) is responsible 
for implementing Title XI, Regulation of Explosives (18 United States 
Code (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, U.S.C., 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 (``Commerce in 
Explosives'').
    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 for 
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).
    Section 55.109 requires licensed manufacturers of explosive 
materials to legibly identify by marking all explosive materials 
manufactured for sale or distribution. The marks required by this 
section 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. Section 55.109(b) also provides that the 
Director may authorize the use of other means of identification on 
fireworks instead of the required markings specified above.
    The current regulations, however, do not require the marking of 
imported explosive materials.

A. Petition--Institute of Makers of Explosives

    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, 
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 operations.
    According to the petitioner, commerce in explosives is a global 
enterprise and it expects the quantity of imported explosives to 
increase over time. For example, the petitioner stated that between 
1994 and 1997, imports of high explosives increased 14-fold to account 
for approximately 17 percent of all high explosives used annually in 
the United States. IME further stated that while unmarked high 
explosives may have entered the United States over the years, it was 
not until 1999 that the association became aware of significant 
quantities of unmarked cast boosters being imported into the country. 
IME contended that, by the end of 1999, about two million unmarked 
units had been distributed in the United States. The petitioner further 
stated that many more thousands of tons of these high explosives are 
expected to be imported into the United States in the near future.
    Without a change in the regulations, IME is concerned that these 
explosives will enter into the commerce of the U.S. without marks of 
identification, posing significant safety and security risks to the 
public. Although IME informed ATF that many of its member companies 
importing explosives into the U.S. mark their imported explosive 
materials in an effort to ensure the traceability and accountability of 
the materials, it believes that all imported explosive materials should 
be appropriately identified. Therefore, it petitioned ATF

[[Page 63863]]

to amend the Federal explosives regulations.
    By letter dated August 2, 2000, IME amended its petition to narrow 
its scope to importers of high explosives and blasting agents. IME 
stated that it did not understand that the scope of its initial 
petition would apply to importers of low explosives. IME noted that it 
has a specific standard recommending that high explosives and blasting 
agents be marked with a date/plant/shift code.

B. Discussion

    In an effort to protect the public from the misuse of explosive 
materials, ATF generally requires domestic explosives manufacturers to 
mark all explosive materials 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 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 business 
practices. However, as noted, the current regulations do not require 
that imported explosive materials be marked.

C. Advance Notice of Proposed Rulemaking

    Based on IME's petition, ATF published in the Federal Register on 
November 13, 2000, an advance notice of proposed rulemaking requesting 
information and comments from interested persons on the desirability 
and feasibility of marking imported explosive materials (Notice No. 
906, 65 FR 67669). Although we solicited specific comments on the 
following questions, we also requested 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?
    The comment period for Notice No. 906 closed on January 12, 2001.

D. Notice No. 906--Analysis of Comments

    In response to Notice No. 906, ATF received three comments. Two 
commenters argued that licensed importers should place the same or 
similar identification marks on imported explosive materials that are 
currently required for explosive materials manufactured in the United 
States. One of these commenters expressed his opinion that ``explosive 
items imported into the United States should have identification 
markings. Where there is no marking, there is no ability to trace the 
item.'' The other commenter, the International Association of Bomb 
Technicians and Investigators, representing over 4,500 members, stated 
the following:

    Identification markings placed on explosive materials serve to 
protect the public from the misuse of such materials and assist in 
effective tracking and inventory control for their lawful users. 
Moreover, these identification markings serve to facilitate bombing 
investigations leading to the apprehension of persons involved in 
the misuse of explosive materials.
    As imported explosive materials may be subject to misuse, it 
makes sense to insure that they possess essentially similar 
identification markings to those currently required for domestic 
manufactured explosive materials.

    The petitioner, IME, submitted the third comment. IME reiterated 
its position that imported high explosives and blasting agents should 
contain the same identification markings prescribed in the regulations 
for domestically manufactured explosives.
    IME also included an attachment as part of its comment that 
provided responses to the questions posed by ATF in the advance notice. 
In response to ATF's inquiry as to whether all imported explosives 
should be marked or if there should be an exception for certain classes 
of explosives, e.g., low explosives, IME stated that it had no position 
on explosive materials other than high explosives and blasting agents. 
Regarding what identification marks, if any, are currently being placed 
on imported explosives, IME stated that nearly all explosive materials 
imported by its member companies have markings similar to those 
prescribed in the regulations for domestically manufactured explosives. 
It then provided examples of the import marking policies of IME member 
companies. In one instance, an IME member company imports shaped 
charges that are marked on the outer package by the manufacturer with 
the following information:

1. Manufacturer's name, address, and phone number;
2. Date of manufacture;
3. Product name and part number;
4. Transportation classification approval numbers;
5. Gross weight, net weight, and explosive weight;
6. Proper Shipping Name and UN ID; and
7. Importer's name and address (as consignee).
Inside the package, the foreign manufacturer places a label (loosely, 
not attached to the inner packaging) that states all of the above 
mentioned information, except for items one and seven.
    In another example, an IME member company requires sister companies 
to mark explosives with a date, plant, and shift code before 
importation into the United States. The explosives are also marked with 
the trade name and size. The outer packaging is marked with the country 
of manufacture and the manufacturer's name. This full-line company 
requires imported explosives from other manufacturers to be marked with 
the trade name, lot number or date, and product identification. In a 
third instance, an IME member company

[[Page 63864]]

imports a very small amount of explosives that are already marked in 
accordance with United States requirements.
    As stated in the advance notice, 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. In response to our question 
regarding what information should appear on imported explosives, IME 
stated that the same information required on domestically manufactured 
high explosives and blasting agents (identity of the manufacturer, and 
location, date, and shift of manufacture) should appear on imported 
high explosives and blasting agents. The commenter further stated that 
it did not see any benefit in requiring the importer's name and address 
and argued that this creates inconsistent and additional requirements 
for importers. IME also explained that identifying the manufacturer of 
explosives is routine while placing the importer's name and address on 
the products is not and could be prohibitive. In addition, IME contends 
that one of the benefits of the current required markings is 
manufacturer accountability in the use of explosive materials.
    IME believes that imported high explosives and blasting agents 
should be marked with the shift of manufacture for the following 
reasons:

    The shift of manufacture markings divide lot sizes of a 
particular high explosive or blasting agent into quantities that 
make two major benefits of marking possible. These benefits are 
traceability for evidentiary and technical purposes. Modern 
explosives plants are capable of producing millions of pounds of 
explosives per day. Huge lot sizes of one particular high explosive 
or blasting agent makes (1) too many people part of the custody 
chain and may dilute the effectiveness of evidence, and (2) makes it 
impossible to trace a quality control problem to a specific 
manufacturing process for corrective action.

    Another commenter also recommended that imported explosives be 
marked with a date/shift code.
    IME believes that the current exceptions to the marking 
requirements provided in the regulations for domestically manufactured 
explosives should apply to imported explosives as well.
    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, ATF asked if it is feasible for a U.S. importer to 
place the required marks on foreign explosive materials. In its 
comment, IME stated that it would be cost prohibitive for U.S. 
importers to actually place the required marks on high explosives and 
blasting agents. IME also stated that it is not aware of any U.S. 
importers that mark individual units of high explosives and blasting 
agents at any time other than the point of manufacture. Furthermore, 
the commenter noted that it is ``much less safe to mark at any time 
other than the point of manufacture and * * * importers may not know 
required information such as the shift of manufacture.''
    ATF asked how many importers would be affected by a requirement to 
place identification markings on foreign explosive materials and, 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. IME responded that an IME member that imports 
explosives and is a small business would not be affected by a 
requirement to place identification markings on foreign explosives 
because the company specifies that the product must be marked in 
accordance with ATF regulations prior to importation into the United 
States.
    In response to ATF's inquiry regarding cost burdens that would be 
imposed on importers for purchasing or leasing equipment for marking 
foreign explosives, IME stated that it does not expect any importers of 
commercial high explosives or blasting agents to purchase or lease 
equipment to mark foreign explosives. Rather, the commenter recommended 
``that the markings be placed on the products by the foreign 
manufacturer during the manufacturing process.'' In that regard, ATF 
also asked in the advance notice what would be the cost for importers 
to contract with a foreign manufacturer to place the required marks on 
explosive materials on behalf of the importer. IME responded that it 
does not collect or identify data that relates to price information 
such as the cost of bringing a product to market. Following its initial 
comment, IME submitted estimated cost information both for equipment 
and for marking imported explosives. IME explained, however, that marks 
of identification ordinarily are applied at the time of manufacture. As 
a result, U.S. importers likely would structure contracts with foreign 
manufacturers to effect the marking at the time of manufacture 
resulting in reduced costs for U.S. importers. As such, this cost 
burden would not significantly affect or cause an undue burden to small 
businesses.

II. Proposed Amendments

A. Amendments to Section 55.109

    In an effort to protect the public from the misuse of explosive 
materials, to more easily identify explosive materials, and to 
successfully trace misused explosive materials or explosive materials 
used in crimes, ATF believes that all explosive materials should 
contain marks of identification. As mentioned in the advance notice, 
explosive materials that contain identification marks can be tracked 
through the records kept by licensees and permittees. This process 
often provides valuable information in investigations involving 
bombings and explosions and is useful for inspection purposes in 
verifying inventory and proper business practices.
    ATF recognizes that the importation of explosive materials and the 
use of imported explosives by explosive users and industry members are 
becoming increasingly more common. ATF shares IME's concern that these 
explosives are entering into the commerce of the U.S. without marks of 
identification, posing significant safety and security risks to the 
public. As such, ATF believes that all explosive materials imported 
into the United States, including low explosives, should contain 
identification marks similar to those required for domestically 
manufactured explosives.
    Accordingly, we are proposing to amend section 55.109 to provide 
that licensed importers and permittees must identify by marking all 
explosive materials they import for sale or distribution, or import for 
their own use. The required marks must be legible and in the English 
language, using Roman letters and Arabic numerals. The marks must 
identify the importer's or permittee's name and address, the location 
(city and country) where the explosive materials were manufactured, as 
well as the date and shift of manufacture. ATF believes that the 
commenters presented valid arguments in support of requiring the date 
and shift of manufacture for imported explosive materials. ATF is not 
proposing to require the name of the foreign manufacturer on imported 
explosives as requested by IME. Rather, we believe that the identity of 
the importer is necessary to help ensure that explosive materials can 
be effectively traced for criminal enforcement purposes. Furthermore, 
ATF does not have regulatory oversight over foreign manufacturers, 
particularly with respect to their recordkeeping practices.

[[Page 63865]]

    As noted earlier, licensees and permittees must record the 
manufacturer's marks of identification on all explosives they receive. 
This requirement helps ensure that explosive materials can be 
effectively traced for criminal enforcement purposes. This process is 
also useful for ATF inspection purposes in verifying inventory and 
proper conduct of business practices.
    As proposed, the required 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. 
This is consistent with current requirements for domestically 
manufactured explosives. The proposed regulations also provide that the 
required marks of identification must be placed on imported explosive 
materials within 24 hours of release from Customs custody.
    In addition, under the proposed regulations, the exceptions to the 
marking requirements currently specified in the regulations will apply 
to imported explosive materials as well.
    ATF is also proposing other amendments to section 55.109. We are 
clarifying that licensed manufacturers must place the required marks of 
identification on the explosive materials at the time of manufacture. 
We are also proposing to incorporate into the regulations the 
provisions of ATF Ruling 75-35 (1975-ATF C.B. 65). This ruling 
authorizes any method, or combination of methods, for affixing the 
required marks to the immediate container of explosive materials, or 
outside containers used for the packaging thereof, provided the 
identifying marks are legible, show all the required information, and 
are not rendered unreadable by extended periods of storage. The ruling 
also provides that where it is desired to utilize a coding system and 
omit printed markings on the containers, a letterhead application 
displaying the coding to be used and the manner of its application must 
be filed by the licensed manufacturer with, and approved by, the 
Director prior to the use of the proposed coding. Finally, the ruling 
provides that where a manufacturer operates his/her plant for only one 
shift during the day, the shift of manufacture need not be shown. Upon 
the effective date of a final rule in this matter, ATF Ruling 75-35 
will be declared obsolete.

B. Miscellaneous--Amendment of Sections 55.55 and 55.41

    Section 55.55 provides that a licensee or permittee who intends to 
change the class of explosive materials described in his or her license 
from a lower to a higher classification (e.g., black powder to 
dynamite) must file an application on ATF Form 5400.13/ATF Form 5400.16 
(Application for License or Permit) with the ATF National Licensing 
Center. 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 part 55. 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. 
Finally, upon receipt of the amended license or amended permit, the 
licensee or permittee must submit his or her superseded license or 
superseded permit and any copies furnished with the license or permit 
to the ATF National Licensing Center.
    ATF personnel have frequently encountered instances where the class 
of explosives listed on a particular explosives license is inconsistent 
with the type of explosive materials involved in a particular business' 
operations. The license classification system contained in section 
55.55 has also caused confusion throughout the explosives industry as 
it is related to classification of explosive materials distributed, 
imported, or used, and the class of explosives authorized by the 
license or permit.
    Accordingly, ATF is proposing to remove section 55.55. ATF believes 
that removing this section will provide more flexibility to the 
explosives industry in terms of the classes of explosive materials 
involved in their businesses, while not reducing the requirement to 
store explosive materials in accordance with the regulations contained 
in subpart K. Technical amendments are being made with respect to 
section 55.41 in order to be consistent with the proposed amendment of 
section 55.55.

III. How This Document Complies With the Federal Administrative 
Requirements for Rulemaking

A. Executive Order 12866

    We have determined that this proposed regulation is not a 
significant regulatory action as defined by Executive Order 12866. 
Therefore, a Regulatory Assessment is not required.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to conduct 
a regulatory flexibility analysis of any rule subject to notice and 
comment rulemaking requirements unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small not-for-profit enterprises, and small governmental jurisdictions. 
We hereby certify that this proposed regulation, if adopted, will not 
have a significant economic impact on a substantial number of small 
entities. As noted in IME's comment, U.S. importers that are considered 
small businesses should not be significantly affected by the proposed 
regulations because the foreign-manufactured explosives they import 
will already be marked in accordance with the provisions of section 
55.109. Accordingly, a regulatory flexibility analysis is not required. 
We specifically request comments on whether small importers expect 
foreign explosives manufacturers to mark their explosives consistent 
with this proposed rule even though they are not legally subject to its 
requirements.

C. Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collections of information should be 
sent to the Office of Management and Budget, Attention: Desk Officer 
for the Bureau of Alcohol, Tobacco and Firearms, Office of Information 
and Regulatory Affairs, Washington, DC 20503, with copies to the Chief, 
Document Services Branch, Room 3110, Bureau of Alcohol, Tobacco and 
Firearms, at the address previously specified. Comments are 
specifically requested concerning:
    (a) Whether the proposed collections of information are necessary 
for the proper performance of the functions of the Bureau of Alcohol, 
Tobacco and Firearms, including whether the information will have 
practical utility;
    (b) The accuracy of the estimated burden associated with the 
proposed collections of information (see below);
    (c) How the quality, utility, and clarity of the information to be 
collected may be enhanced; and
    (d) How the burden of complying with the proposed collections of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology.
    The collections of information in this proposed regulation are in 
27 CFR 55.109(a)(2). This information is required to properly identify 
imported explosive materials. The collections of information are 
mandatory. The likely respondents are businesses.

[[Page 63866]]

    [sbull] Estimated total annual reporting and/or recordkeeping 
burden: 45 hours.
    [sbull] Estimated average burden hours per respondent and/or 
recordkeeper: 1 hour.
    [sbull] Estimated number of respondents and/or recordkeepers: 15.
    [sbull] Estimated annual frequency of responses: 3.
    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.

IV. Public Participation

    We are requesting comments on the proposed regulations from all 
interested persons. In addition, we are specifically requesting 
comments on the clarity of this proposed rule 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.

A. Submitting Comments by Fax

    You may submit written comments by facsimile transmission to (202) 
927-8602. Facsimile comments must:
    [sbull] Be legible;
    [sbull] Reference this notice number;
    [sbull] Be 8\1/2\'' x 11'' in size;
    [sbull] Contain a legible written signature; and
    [sbull] Be not more than five pages long.

We will not acknowledge receipt of facsimile transmissions. We will 
treat facsimile transmissions as originals.

B. Request for Hearing

    Any interested person who desires an opportunity to comment orally 
at a public hearing should submit his or her request, in writing, to 
the Director within the 90-day comment period. The Director, however, 
reserves the right to determine, in light of all circumstances, whether 
a public hearing is necessary.

C. Disclosure

    Copies of the petition, the advance notice, the comments received 
in response to the advance notice and the comments received in response 
to this notice of proposed rulemaking will be available for public 
inspection by appointment during normal business hours at: ATF 
Reference Library, Room 6480, 650 Massachusetts Avenue, NW., 
Washington, DC; telephone 202-927-7890.
    For your convenience, ATF will post comments received in response 
to this notice on the ATF web site. All comments posted on our web site 
will show the name of the commenter, but will have street addresses, 
telephone numbers, and e-mail addresses removed. We may also omit 
voluminous attachments or material that we do not consider suitable for 
posting. In all cases, the full comments will be available in the 
library as noted above, or you may request copies of the full comments 
by writing to the ATF Reference Librarian at the address shown above. 
To access online copies of the comments on this rulemaking, visit 
http://www.atf.treas.gov/, and select ``Regulations,'' then ``Notices 
of proposed rulemaking (Firearms, Explosives and Others)'' and this 
notice number. Click on the ``View comments'' link.

D. Regulation Identification Number

    A regulation identification number (RIN) is assigned to each 
regulatory action listed in the Unified Agenda of Federal Regulations. 
The Regulatory Information Service Center publishes the Unified Agenda 
in the Federal Register in April and October of each year. The RIN 
contained in the heading of this document can be used to cross-
reference this action with the Unified Agenda.

E. Drafting Information

    The author of this document is James P. Ficaretta, Regulations 
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 proposes to amend 27 
CFR part 55 as follows:

PART 55--COMMERCE IN EXPLOSIVES

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

    Authority: 18 U.S.C. 847.

Sec.  55.41  [Amended]

    2. Section 55.41(c) is amended by removing ``of the class 
authorized by this permit'' at the end of the second sentence.

Subpart D--[Amended]

    3. Subpart D is amended by removing section 55.55.
    4. Section 55.109 is revised to read as follows:


Sec.  55.109  Identification of explosive materials.

    (a) General. Explosive materials, whether manufactured in the 
United States or imported, must contain certain marks of 
identification.
    (b) Required marks. (1) Licensed manufacturers. Licensed 
manufacturers who manufacture explosive materials for sale, 
distribution, or their own use must place the following marks of 
identification on explosive materials at the time of manufacture:
    (i) The name of the manufacturer; and
    (ii) The location, date, and shift of manufacture. Where a 
manufacturer operates his plant for only one shift during the day, he 
does not need to show the shift of manufacture.
    (2) Licensed importers and permittees. (i) Licensed importers who 
import explosive materials for sale or distribution or their own use 
and permittees who import explosive materials for their own use must 
place the following marks of identification on the explosive materials 
they import:
    (A) The name and address (city and state) of the importer or 
permittee; and
    (B) The location (city and country) where the explosive materials 
were manufactured, date, and shift of manufacture. Where the foreign 
manufacturer operates his plant for only one shift during the day, he 
does not need to show the shift of manufacture.
    (ii) The required marks for imported explosive materials must be in 
the English language, using Roman letters and Arabic numerals.
    (iii) Within 24 hours of the date of release from Customs custody, 
licensed importers and permittees must place the required marks on all 
explosive materials imported, if such explosive materials did not bear 
the required marks at the time of their release from Customs custody.

[[Page 63867]]

    (c) General requirements. (1) The required marks prescribed in this 
section must be legible.
    (2) Licensed manufacturers, licensed importers, and permittees 
importing explosive materials must place the required marks on each 
cartridge, bag, or other immediate container of explosive materials 
that they manufacture or import, as well as on any outside container 
used for the packaging of such explosive materials.
    (3) Licensed manufacturers, licensed importers, and permittees 
importing explosive materials may use any method, or combination of 
methods, to affix the required marks to the immediate container of 
explosive materials, or outside containers used for the packaging 
thereof, provided the identifying marks are legible, show all the 
required information, and are not rendered unreadable by extended 
periods of storage.
    (4) If licensed manufacturers, licensed importers or permittees 
importing explosive materials desire to use a coding system and omit 
printed markings on the container, they must file with ATF a letterhead 
application displaying the coding that they plan to use and explaining 
the manner of its application. The Director must approve the 
application before the proposed coding can be used.
    (d) Exceptions. (1) Blasting caps. Licensed manufacturers, licensed 
importers, or permittees importing blasting caps, are only required to 
place the identification marks prescribed in this section on the 
containers used for the packaging of blasting caps.
    (2) Alternate means of identification. The Director may authorize 
other means of identifying explosive materials, including fireworks, 
upon receipt of a letter application from the licensed manufacturer, 
licensed importer, or permittee, showing that such other identification 
is reasonable and will not hinder the effective administration of this 
part.

    Signed: August 14, 2002.
Bradley A. Buckles,
Director.
    Approved: September 16, 2002.
Timothy E. Skud,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 02-26253 Filed 10-15-02; 8:45 am]
BILLING CODE 4810-31-P