[Federal Register Volume 68, Number 19 (Wednesday, January 29, 2003)]
[Proposed Rules]
[Pages 4406-4422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1946]



[[Page 4406]]

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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 55

[Notice No. 968]
RIN 1512-AB48


Commerce in Explosives (2000R-9P)

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 issuing 
this notice of proposed rulemaking, in part, pursuant to the Regulatory 
Flexibility Act (RFA) which requires an agency to review within ten 
years of publication, rules for which an agency prepared a final 
regulatory flexibility analysis addressing the impact of the rule on 
small businesses or other small entities. Based on comments we have 
received in response to the RFA analysis, this document proposes 
amendments to the explosives regulations relating to fireworks. In 
addition, this document proposes to incorporate into the regulations 
the provisions of an ATF Ruling 76-18, concerning alternate 
construction standards for storage facilities for explosive materials. 
This document also proposes amendments to the regulations that have 
been initiated by ATF, as well as amendments that have been proposed by 
members of the explosives industry.

DATES: Comments must be received on or before April 29, 2003.

ADDRESSES: Send written comments to: James P. Ficaretta, Program 
Manager; Room 5150; Bureau of Alcohol, Tobacco and Firearms; P.O. Box 
50221; Washington, DC 20091-0221; ATTN: Notice No. 968. Written 
comments must be signed and may be of any length.
    E-mail comments may 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, Firearms, 
Explosives, and Arson, Bureau of Alcohol, Tobacco and Firearms, 650 
Massachusetts Avenue, NW., Washington, DC 20226, telephone (202) 927-
8210.

SUPPLEMENTARY INFORMATION:

I. Background

A. T.D. ATF-293

    On February 5, 1990, ATF published a final rule in the Federal 
Register amending certain regulations contained in 27 CFR part 55 (T.D. 
ATF-293, 55 FR 3717). The final rule, which became effective on March 
7, 1990, implemented storage and recordkeeping requirements for 
industry members engaged in manufacturing, importing, dealing in, or 
using fireworks and implemented the provisions of Public Law 99-308, 
100 Stat. 449 (1986) relating to black powder. Some of the major 
provisions of the amendments were:
    1. Extending the definition of high explosives to cover, for 
storage purposes, flash powder and bulk salutes, since these materials 
can be made to detonate by means of a blasting cap when unconfined (ATF 
has subsequently held that flash powder and bulk salutes are high 
explosives for all purposes of part 55);
    2. Limiting to no more than 10 pounds the amount of flash powder 
used in special (display) fireworks that can be kept outside an 
approved magazine and in any one processing building during a day's 
assembling operations;
    3. Limiting to no more than 500 pounds the amount of other 
explosive materials that can be kept outside an approved magazine and 
in any processing building or area during a day's assembling 
operations;
    4. Requiring that, under certain conditions, processing buildings 
or areas holding no more than 10 pounds of flash powder or 500 pounds 
of other explosive materials used in special fireworks be located in 
accordance with the table of distances in section 55.218;
    5. Establishing new minimum separation of distance tables 
applicable to fireworks plants, fireworks process buildings, and 
fireworks plant magazines;
    6. Amending the recordkeeping requirements to include information 
regarding quantity and description of special fireworks; and
    7. Eliminating the recordkeeping requirements for licensees and 
permittees selling or disposing of exempt quantities of black powder 
for sporting, recreational, or cultural purposes in antique firearms or 
antique devices.

B. Regulatory Flexibility Act--Periodic Review of Rules

    Section 610 of the Regulatory Flexibility Act (RFA), 5 U.S.C. 610, 
requires an agency to review within 10 years of publication rules for 
which the agency prepared a final regulatory flexibility analysis 
addressing the impact of the rule on small businesses or other small 
entities. In that regard, ATF prepared a final regulatory flexibility 
analysis with respect to T.D. ATF-293. (See 55 FR 3719.)
    The periodic review of regulations under section 610(b) of RFA 
requires agencies to consider the following factors: (1) The continued 
need for the rule; (2) the nature of complaints or comments received 
concerning the rule from the public; (3) the complexity of the rule; 
(4) the extent to which the rule overlaps, duplicates, or conflicts 
with other Federal rules and, to the extent feasible, with State and 
local governmental rules; and (5) the length of time since the rule has 
been evaluated or the degree to which technology, economic conditions, 
or other factors have changed in the area affected by the rule.

C. Notice No. 845

    To comply with section 610 of RFA, on January 10, 1997, we 
published a General Notice in the Federal Register (Notice No. 845, 62 
FR 1386) initiating the review of T.D. ATF-293. In the notice we 
requested comments from members of the explosives industry and other 
interested persons as to the effectiveness of the regulations issued in 
that final rule. We also reviewed the regulations issued in T.D. ATF-
293 addressing the factors specified in section 610(b) of RFA, which 
include the continued need for the rule, the nature of the complaints 
received, the complexity of the rule, the extent to which the rule 
overlaps, duplicates, or conflicts with other Federal rules, and 
changes in the area affected by the rule.
    The comment period for Notice No. 845 closed on April 10, 1997.

II. Notice No. 845--Analysis of Comments

    We received six comments in response to Notice No. 845. Two 
commenters recommended amendments to the marking requirements for 
fireworks as set forth in section 55.109.
    One commenter suggested that this section require only a part 
number and size of shell. We are not proposing this suggestion since it 
would negatively affect the traceability of fireworks. Generally, 
licensees and permittees must record the manufacturer's marks of

[[Page 4407]]

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.
    The other commenter suggested that this section be amended to 
require the size and type of shell and a date of production, omitting 
the shift code. ATF believes that the additional burden of requiring 
each shell to be marked with the size and type of shell is not 
warranted because it would provide no additional information useful to 
ATF in tracing the origin of explosives used in crime. Therefore, we 
are not proposing this portion of the suggestion. However, we agree 
that amending the date code to omit the shift of manufacture would not 
significantly affect traceability in instances where fireworks 
manufacturers are operating only a single shift. This issue is being 
addressed in a separate rulemaking proceeding. Accordingly, we are not 
now proposing this suggestion.
    Two comments addressed the recordkeeping requirements for display 
fireworks aerial shells under sections 55.123 and 55.124. The 
commenters stated that the current requirement that all manufacturer's 
marks of identification be recorded for acquisitions and dispositions 
is burdensome to proprietors due to large numbers of shells 
manufactured, acquired, and disposed of in most fireworks businesses. 
The commenters suggested that recordkeeping requirements for 
manufacture, acquisition, and distribution of aerial fireworks shells 
be amended to require that the number and size of shells be recorded in 
lieu of the current requirement that all manufacturer's marks be 
recorded. We believe that adoption of this suggestion would have a 
significant negative effect on our ability to trace fireworks. To trace 
fireworks, ATF must have access to markings reflecting the name of the 
manufacturer, as well as the location and date of manufacture. Without 
these markings, tracing is impossible. In consideration of ATF's 
mission to reduce violent crime and protect public safety, we are not 
proposing this suggestion.
    We received four comments regarding the classification of flash 
powder as a high explosive. As specified in section 55.202(a), ``high 
explosives'' are explosive materials that can be caused to detonate by 
means of a blasting cap when unconfined (e.g., dynamite, flash powders, 
and bulk salutes).
    Two commenters contended that this classification was not 
appropriate and they questioned the validity of past tests on flash 
powder. ATF may rely upon several sources for information and expertise 
regarding explosive materials, including ATF and industry experts, 
associations (e.g., the National Fire Protection Association (NFPA)), 
publications, and scientific tests. According to ATF's explosives 
experts and others, flash powders can detonate when unconfined. 
Further, ATF's classification of flash powder as a high explosive is 
consistent with the NFPA 1124 (``Code for the Manufacture, 
Transportation, and Storage of Fireworks and Pyrotechnic Articles'') 
recommendation that bulk flash powders be stored in accordance with the 
regulations governing storage for high explosives (section 55.218). In 
the interest of public safety, we are not proposing to change the 
classification of flash powder.
    Another commenter suggested that ATF provide a better description 
of flash powder based on its chemical makeup. Due to the variety of 
combinations of fuels and oxidizers that can be used to make flash 
powder, we believe that basing a definition solely on the chemical 
makeup would prove cumbersome and may restrict ATF's discretion to 
accurately determine whether new explosive materials are flash powders. 
Furthermore, the definition that is being proposed in this notice is 
sufficient to enable ATF to accurately classify the various types of 
flash powders. Therefore, we are not proposing this suggestion.
    The fourth commenter suggested that the regulations be revised to 
state that in addition to flash powder, ``any specific quantity of 
pyrotechnic composition capable of detonation by means of a blasting 
cap when unconfined'' is a high explosive. We believe that this is 
unnecessary because the definition of high explosives found at section 
55.202(a) prescribes that all explosive compositions that can be caused 
to detonate when unconfined are to be classified as high explosives. 
Accordingly, we are not proposing this suggestion.
    ATF received four comments regarding operations in fireworks 
process buildings as follows:
    1. Current regulations at sections 55.221 and 55.222 mandate that 
no more than 10 pounds of flash powder be present in any fireworks 
process building. Three commenters contended that the 10-pound limit is 
overly restrictive. They suggested increasing the maximum allowable 
quantity of flash powder in a fireworks process building to 50 pounds. 
Due to the volatile nature of flash powder, we believe that allowing 
more than 10 pounds of flash powder in a fireworks process building 
would pose an excessive and unnecessary risk of injury to employees in 
the fireworks plant and to the general public.
    2. All of the commenters argued that the 500-pound limitation on 
pyrotechnic compositions used in a process building or area is too 
restrictive. One commenter suggested that in-process compositions and 
materials not be considered explosives for tables of distances 
purposes. ATF believes that, due to the possibility for accidental 
explosions of pyrotechnic compositions, it is in the interest of public 
safety to require that pyrotechnic compositions in assembly processes 
be subject to table of distances requirements. Therefore, we are not 
proposing to exempt in-process materials from the regulations.
    3. Two commenters suggested that partially completed display 
fireworks be allowed to remain in process buildings overnight. They 
argued that the movement of explosives to and from magazines over the 
course of a business day may have an adverse effect on safety. They 
suggested that the buildings could be ``securely locked'' when 
unoccupied. ATF has adopted minimum security standards for the storage 
of explosives, including construction and locking requirements. 
Permanent magazines used for overnight storage of explosives must meet 
the prescribed minimum standards. Further, we believe that the 
employment of proper safety practices when handling or moving explosive 
materials used in the assembly of fireworks will minimize safety risks. 
The threat to public safety posed by leaving display fireworks 
components overnight in process buildings outweighs any risks 
associated with the movement of the materials to and from storage 
magazines. Therefore, we are not proposing this suggestion.
    4. Two commenters suggested that ATF adopt by reference NFPA 1124 
standards to establish limits for pyrotechnic materials in process 
buildings. That is, the commenters suggested that ATF's regulations be 
amended to require persons to comply with NFPA 1124 standards. ATF 
relies upon groups such as the American Pyrotechnics Association (APA) 
and the NFPA for guidance on certain

[[Page 4408]]

explosives issues. ATF often incorporates sections of NFPA guidelines 
into its regulations. However, adopting an outside organization's 
guidelines by reference may limit ATF's control over its own 
regulations because regulatory requirements could be changed based upon 
decisions made by NFPA to revise its code. Therefore, we are not 
proposing to adopt the NFPA standards by reference.
    5. Finally, two commenters suggested that the 500-pound limitation 
(on the amount of pyrotechnic compositions allowed in fireworks process 
buildings) not apply to drying operations that are part of the 
manufacturing process and that these operations be subject to the table 
of distances in section 55.219. The tables at sections 55.222 and 
55.223 currently require that process operations, including drying, be 
located specific distances from, among other things, fireworks process 
and nonprocess buildings, fireworks plant buildings, and fireworks 
shipping buildings. The table at section 55.219 applies to the storage 
of low explosives other than display fireworks. Although some drying 
operations may present less of a mass explosion hazard than others, we 
believe that the application of the low explosives table to display 
fireworks, which sometimes contain high explosives, would not be in the 
interest of public safety. Therefore, we are not proposing this 
suggestion.
    ATF received four comments on the application of the table of 
distances in section 55.224. Those comments are discussed as follows:
    1. Two commenters suggested modifying the table such that it would 
provide distance requirements specifically for display fireworks up to 
200,000 pounds. Under the current table, persons are required to refer 
to section 55.218 for the storage of display fireworks in excess of 
10,000 pounds to calculate separation distances of magazines from 
inhabited buildings, public highways, passenger railways, and other 
magazines. The problem presented is that the distance requirements 
change drastically when going from section 55.224 (for weights up to 
10,000 pounds) to section 55.218 (for weights over 10,000 pounds). In 
comparing the two tables, there are also discrepancies in separation 
requirements for distances between magazines. The proposed table 
provides for more proportionate increases in distances for weights of 
materials above 10,000 pounds, and it provides for a smooth transition 
to the table at section 55.218 for weights above 200,000 pounds. ATF 
agrees that the adoption of this table will not jeopardize public 
safety. Accordingly, we are proposing this suggestion. (See section IV 
(``Proposed Amendments to Part 55''), amendment of section 55.224.)
    2. One commenter suggested that the table in section 55.219, rather 
than the table in section 55.218 (as currently required), be used for 
weights over 10,000 pounds. The transition from the distance 
requirements in the table in section 55.224 to those in the table in 
section 55.219 would not be consistent. In fact, the requirements for 
slightly over 10,000 pounds in the table in section 55.219 are less 
than those for up to 10,000 pounds in the table in section 55.224. We 
have determined that this does not further public safety. Therefore, we 
are not proposing this suggestion. However, as stated above, we are 
proposing a revision to the table in section 55.224 that remedies this 
problem by providing for more proportionate increases in distances for 
weights of materials above 10,000 pounds, and by providing for a smooth 
transition to the table at section 55.218 for weights above 200,000 
pounds.
    3. Finally, one commenter stated that the table in section 55.224 
is unnecessarily restrictive for hobbyists storing less than 1,000 
pounds of fireworks. The commenter suggested that the table be further 
broken down to account for smaller weight categories, with 
corresponding shorter distances than those currently required for up to 
1,000 pounds. The commenter submitted a specific table of distances for 
consideration. We have determined through consultation with the APA 
that the suggested table would apply to certain shell sizes only. We 
believe that implementation of such a provision would result in 
confusion as to the applicability of the table in situations in which a 
variety of sizes and types of fireworks shells are stored together. 
Accordingly, in the interest of clarity and administration, we are not 
proposing this suggestion.
    Two commenters proposed that ATF implement regulations relaxing the 
requirements for explosives storage at a display site. The commenters 
suggested that the language formerly contained on ATF Form 5400.21, 
``Application for Permit User Limited Display Fireworks,'' be 
incorporated into the regulations. The language formerly used in the 
instructions on Form 5400.21 has been changed specifically because it 
tended to cause a misconception that fireworks could be stored in a 
manner not in compliance with the regulations in part 55. ATF believes 
that adoption of this language would not be consistent with our mission 
to protect the public from unsafe storage of explosives. Therefore, we 
are not proposing this suggestion.
    ATF received three comments regarding shipping operations. Two 
commenters stated that ATF regulations should address ``shipping 
buildings,'' in which articles commonly used to pack and prepare 
fireworks for shipping, such as empty cardboard boxes, chairs, 
telephones, and computers, could be used and kept. The commenters 
suggested that the regulations be amended to allow such items, as well 
as certain operations, such as unpacking and handling of fireworks, in 
separate shipping buildings. ATF regulations currently define the term 
``fireworks shipping building.'' The regulations do not prohibit the 
use or presence of the noted articles or the unpacking or handling of 
fireworks in a fireworks shipping building. Therefore, we are not 
proposing this suggestion.
    One commenter suggested that ATF allow packing items, such as tape 
and empty containers to be stored in magazines. The housekeeping 
requirements in section 55.215 generally prohibit the presence of empty 
containers and certain other items in magazines, in the interest of 
reducing fire and explosion hazards in magazines. We believe that 
implementing provisions allowing for the storage of these items in 
magazines would be contrary to the regulations and ATF's goal of 
protecting the public. Therefore, we are not proposing this suggestion.

III. IME Correspondence

    In addition to the comments regarding Notice No. 845, ATF received 
correspondence from the explosives industry concerning additional 
amendments to part 55. In a letter to ATF dated October 31, 2000, the 
Institute of Makers of Explosives (IME) submitted suggestions for 
amending the Federal explosives regulations in part 55. IME stated in 
its letter that it is the safety association of the commercial 
explosives industry and that 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. In 
the following paragraphs, we will summarize IME's suggested amendments 
to the regulations, along with our evaluation of each proposal.
    1. ATF regulations currently require that licensees and permittees 
maintain all required records in permanent form (i.e., commercial 
invoices, record

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books). The regulations do not currently provide for computer 
recordkeeping, although ATF has allowed computer recordkeeping on a 
case-by-case basis by variance. IME has suggested that ATF standardize 
the requirements for computer recordkeeping in order to eliminate the 
necessity for variances for such recordkeeping systems. In this notice, 
for reasons similar to those noted by IME, ATF is proposing guidelines 
for computer recordkeeping systems. (See section IV (``Proposed 
Amendments to Part 55''), amendment of section 55.121.)
    2. IME has proposed that ATF eliminate the provisions requiring the 
use of non-sparking materials in the construction of magazines where 
spark-insensitive materials are stored. It stated that modern high 
explosives and blasting agents are not sensitive to frictional sparks. 
However, IME further proposed that the requirement should be retained 
for spark-sensitive materials such as powders and fireworks. ATF's 
magazine construction requirements are based upon the type of magazine 
(e.g., type 1, type 2, etc.) in question, not the spark-sensitivity of 
the explosives to be stored. This is because magazines used for the 
storage of spark-insensitive explosives may also be used for the 
storage of spark-sensitive explosives such as black powder and flash 
powder. We believe that basing construction standards on the spark-
sensitivity of the explosives stored, rather than on the type of 
magazine and class of explosives, may lead to confusion and ambiguity. 
Furthermore, there would be a burden on proprietors to determine 
whether the materials being stored are sensitive to sparks. Due to the 
potential for creating a public safety hazard, we are not proposing 
this suggestion.
    3. IME has suggested that ATF accept Department of Defense (DOD) 
specifications for DOD magazines that are used to store explosives as 
an alternative to compliance with ATF requirements. IME has stated that 
companies sometimes lease DOD magazines for storage of commercial 
explosives and that companies storing commercial explosives in 
compliance with DOD requirements are sometimes not in compliance with 
ATF standards. Explosive materials manufactured under DOD contracts and 
subject to DOD requirements, however, often differ significantly from 
materials manufactured for commercial use and distribution and subject 
to ATF requirements. Additionally, DOD generally requires that a level 
of physical security be maintained (e.g., armed guards) to reduce the 
threat of bullet penetration and thefts. Conversely, ATF's magazine 
construction requirements contemplate a lack of physical security, 
which is common practice in commercial operations. Therefore, we 
believe that it is appropriate to ensure that any storage of commercial 
explosive materials be in compliance with these ATF regulations 
developed specifically for commercial explosive materials and 
operations. Accordingly, we are not proposing IME's suggestion.
    4. IME has suggested that ATF convert to United Nations terminology 
for hazard classifications in determining the appropriate storage for 
explosive materials. It stated that ATF should accept for purposes of 
explosives storage, the hazard classifications assigned by the U.S. 
Department of Transportation (DOT), which uses United Nations 
terminology in classifying hazardous materials for transportation 
purposes. DOT assigns United Nations hazard classifications for 
transportation of explosives based, in part, upon the performance of 
the packaging of the explosives. For example, where packaging that will 
reduce the likelihood of mass detonation is used, DOT will assign a 
``lower'' hazard classification (triggering less stringent 
transportation requirements) than would be assigned if the explosive 
materials were not packaged in such a manner. ATF often encounters 
instances in which explosives are removed from DOT-mandated packaging 
when placed in magazines, potentially changing the mass detonation/
deflagration qualities of the explosives. Adoption of the UN hazard 
classification standards for storage of explosive materials could 
result in unpackaged high explosives being stored in magazines intended 
for storage of low explosives. Therefore, we are not proposing IME's 
suggestion.
    5. IME has suggested that ATF adopt its standards for bullet-
resistant magazine construction. IME states that the requirements in 
the regulations (sections 55.207 and 55.208) and the standards found in 
ATF Ruling 76-18 (1976-ATF C.B. 106) are inconsistent with respect to 
bullet-resistance standards. It suggested that ATF adopt the bullet-
resistance standards found in IME's Safety Library Publication No. 1. 
These standards were derived from research and testing sponsored by IME 
and ATF. IME stated that most magazines used in the commercial industry 
already meet the \1/4\-inch steel and 3-inch hardwood standard, so this 
amendment should not prove particularly burdensome to the industry. ATF 
agrees that bullet-resistance standards should be consistent throughout 
part 55. Therefore, we are adopting IME's suggestion and we are 
proposing amendments to the regulations to reflect IME's standards. 
(See section IV (``Proposed Amendments to Part 55''), amendment of 
sections 55.207 and 55.208.) We are also proposing that the requirement 
be effective one year from the date of publication of the final rule. 
In addition, the provisions of ATF Ruling 76-18 are being incorporated 
into the proposed regulations. (See section IV (``Proposed Amendments 
to Part 55''), amendment of sections 55.207 and 55.208.) This ruling 
will become obsolete upon the effective date of the final rule.
    6. IME has stated that outdoor type 2 magazines are often located 
on terrain that precludes a bullet from being fired through the roof. 
It proposed that ATF amend the regulations (section 55.208) to require 
bullet-resistant roofs on outdoor type 2 magazines only when it is 
possible for a bullet to be fired directly through the roof and at such 
an angle that the bullet would strike the explosives within. This is 
similar to language used for type 1 magazines in section 55.207. Type 2 
magazines are mobile or portable magazines. As such, they are commonly 
relocated to suit the needs of companies engaged in construction and 
similar activities. Implementing this amendment could cause proprietors 
to unwittingly create a bullet-penetration risk by placing a magazine 
whose roof does not meet bullet-resistance standards in a location 
where bullet penetration is a potential problem. By requiring bullet-
resistant roofs, ATF helps protect against this risk, regardless of how 
often type 2 magazines are relocated. Therefore, we are not proposing 
IME's suggestion.
    7. Section 55.63 requires that proprietors notify ATF of newly 
acquired magazines and of certain changes to explosives magazines, with 
the exception of mobile or portable type 5 magazines. IME suggested 
that ATF amend the regulation to expand and clarify the exception to 
include all portable magazines. Type 4 portable magazines are 
occasionally relocated or added to maximize the amount of material that 
can be safely stored at fireworks premises. We believe that it is 
important for ATF to be notified of such changes in order to help the 
proprietor maintain compliance with the tables of distances. 
Furthermore, we believe that the public safety benefits of requiring 
this notification far outweigh the minimal burden to these proprietors. 
However, we recognize that type 3 and type 5 magazines are commonly 
used for transportation by construction, quarrying, and mining 
companies on a

[[Page 4410]]

daily basis. The requirement to notify ATF in advance of additions and 
relocations would create a substantially greater burden on proprietors 
in these cases. Therefore, we are adopting IME's suggestion, in part, 
and we are proposing to except type 3 and type 5 mobile and portable 
magazines from the notification requirements of section 55.63. We would 
note that all magazines used to store explosives must meet all 
applicable construction and table of distance requirements, regardless 
of how long they are in a particular location.
    8. IME has stated that the industry has taken measures to promote 
usage of the term ``detonator'' in place of ``blasting cap.'' It has 
encouraged ATF to uniformly adopt this term throughout the regulations 
in part 55. The term ``detonator'' is commonly referred to as 
``blasting cap'' and ATF believes that there are many users of 
detonators who actually use that term. In addition, although IME is 
trying to promote usage of the term ``detonator,'' many of the makers 
and users of explosives are not members of IME. These persons routinely 
use the term ``blasting cap'' and might be confused were IME's 
suggestion to be adopted. ATF is also concerned that if only the term 
``detonator'' is used, certain explosives information may not be 
reported to us because of the limited terminology. Accordingly, we are 
not proposing IME's suggestion.
    9. IME has suggested that ATF require any person storing explosives 
to post a warning sign advising against fighting fires in explosives 
storage magazines. It has stated that one of its most important 
policies is to never fight a fire that involves explosive materials. 
IME also stated that it is aware of instances where fires were fought 
that involved explosives and those materials detonated, killing and 
injuring firefighters. As such, IME proposes a requirement that all 
normal access routes to explosive material storage facilities be posted 
with a sign warning against fighting explosive fires and advising of a 
specific emergency phone number.
    On August 24, 1998, ATF published in the Federal Register a final 
rule amending the regulations in section 55.201 to require persons 
storing explosive materials to notify the local fire authority of the 
type, magazine capacity, and location of each site where such explosive 
materials are stored (T.D. ATF-400, 63 FR 44999). We believe that this 
requirement ensures that local fire authorities are apprised of 
explosive materials storage and the possibility that these materials 
may be involved in a fire at explosives premises. We also believe that 
it would be inappropriate to require those proprietors storing 
explosives in a non-industrial setting to place outside their homes or 
businesses a warning sign such as that suggested by IME. In addition to 
placing an undue burden on proprietors, such a requirement would create 
a security risk by drawing attention to the fact that explosives are 
stored on the premises. Accordingly, ATF is not proposing IME's 
suggestion. However, ATF will not require the removal of warning signs 
that have been posted.
    10. IME has suggested that ATF revise the prohibition on storing 
explosive materials against interior walls of magazines. It has stated 
that this restriction is not necessary for modern solid explosive 
products, such as cutters and perforators. Section 55.214 requires that 
explosive materials not be placed directly against interior walls and 
that they must be stored so as not to interfere with ventilation. The 
ventilation afforded by storage in this manner benefits certain 
explosive materials (e.g., dynamite, boosters, fireworks) and also 
helps maintain the integrity of the packaging of the explosives, 
regardless of the configuration or type of explosive materials. 
Accordingly, ATF is not proposing IME's suggestion.
    11. IME has suggested that ATF amend the permit requirement for 
interstate transportation of explosives in section 55.141, noting in 
this regard that DOT regulates both interstate and intrastate 
transportation of explosives and that, therefore, the exemption at 
section 55.141(a)(1) makes the requirement for a permit for interstate 
transportation under section 55.41 superfluous. It has suggested that 
ATF remove the requirement that a person who intends to transport 
explosive materials interstate acquire a permit. Title XI of the 
Organized Crime Control Act of 1970 (18 U.S.C. 842(a)(3)) prohibits 
persons without a license or permit from transporting or shipping 
explosive materials interstate (except in cases where the individual's 
State specifically allows the interstate purchase, transport, and 
shipment from a contiguous State). Accordingly, legislative action 
would be necessary to relax this requirement.
    12. IME has proposed an amendment to the requirement in section 
55.104 that a license or permit furnished for the purpose of purchasing 
explosives contain an original signature. It has suggested that this 
section be amended to require that the licensee or permittee retain an 
original signed copy at his or her premises and furnish a photocopy 
thereof for verification purposes when purchasing explosives. Under the 
current regulations, licensees and permittees are required to furnish a 
copy of their license or permit prior to receiving explosive materials. 
This copy must contain an original signature certifying that the 
license or permit is a true copy of a valid license or permit. In the 
past, ATF has considered similar suggestions to relax the requirement 
for an original signature. However, we are concerned about the 
possibility of persons unlawfully acquiring explosives on a stolen copy 
of a license with a photocopied signature. We believe that this concern 
is still valid. Accordingly, we are not proposing IME's suggestion.

IV. Proposed Amendments to Part 55

    This section contains a compilation of all the proposed amendments 
to part 55, including those initiated by ATF, those based on comments 
received in response to Notice No. 845, and those suggested by IME.

A. Subpart B--Definitions (Section 55.11)

    Currently, ``bulk salutes'' are defined in section 55.11 as 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. This definition allows packages containing a 
majority of salute shells and a minimal number of display fireworks to 
be stored as display fireworks, rather than as high explosives. This is 
a problem because storage requirements for display fireworks are less 
stringent than requirements for the storage of bulk salutes, which are 
high explosives. Therefore, we are amending the definition of ``bulk 
salutes'' to specify that the term includes a collection of salute 
shells packaged with other types of aerial shells in quantities such 
that the salute shells comprise more than 50 percent of the total 
number of shells in the package. This will ensure that packages 
containing mostly salute shells will be stored properly, as high 
explosives. This change is consistent with NFPA guidelines.
    The term ``business premises,'' as currently defined in the 
regulations, includes 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. 
ATF has encountered situations in which an inspection could not be 
conducted properly or in a timely manner due to the fact that the 
records were not at the actual location listed on the license. 
Therefore, we are amending the definition of ``business premises'' to

[[Page 4411]]

specify that the term, when used with respect to a manufacturer, 
importer, or dealer, means the property on which explosive materials 
are manufactured, imported, stored, or distributed. Similarly, when 
used with respect to an explosives permittee, the term will mean the 
property on which the explosive materials are received or stored.
    The definitions for the terms ``articles pyrotechnic,'' ``consumer 
fireworks,'' and ``display fireworks'' are being amended for 
clarification purposes. In addition, technical non-substantive changes 
are being made to the definition of the term ``fireworks process 
building.''
    A definition for the term ``fireworks process area'' is being added 
in order to ensure that open-air processing operations are conducted in 
compliance with the tables of distances in sections 55.222 and 55.223. 
This is being done in the interest of public safety.
    The definition of the term ``fireworks shipping building'' is being 
amended to clarify that such a building may be used for the packing of 
assorted display fireworks into shipping cartons for individual 
displays or for the loading of packaged displays for shipment to 
purchasers.
    The definition of the term ``flash powder'' is being amended in 
order to be more descriptive of the possible ingredients of this 
explosive.
    The definition of the term ``hardwood'' is being amended to be 
consistent with the well-recognized industry standards of the NFPA.
    As defined in the regulations, the term ``highway'' means 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. It has come to our attention that there 
is confusion as to the meaning of the term ``general public.'' We 
believe that even small segments of the general public traveling on 
roads near explosives magazines are entitled to protections similar to 
those afforded to large numbers of persons traveling on similar 
roadways. Moreover, we believe that individuals employed by, or 
otherwise associated with, one explosives facility should be deemed to 
be members of the ``general public'' with respect to any other 
explosives facility. We are amending the definition of the term 
``highway'' to clarify that any road regularly and openly traveled by 
any member of the general public would be subject to the table of 
distance requirements.
    The definition of ``inhabited building'' is being amended to 
clarify specific conditions where a building would be considered to be 
occupied in connection with the manufacture, storage, transportation, 
and use of explosive materials and, therefore, not be considered an 
inhabited building. For example, where there are two explosives 
businesses (Business A and Business B), a building occupied solely by 
Business A will be considered an ``inhabited building'' with respect to 
the explosives storage magazines that are maintained by Business B. 
However, this same building would fall within the exception for 
``buildings occupied in connection with the manufacture, 
transportation, storage, or use of explosive materials'' with respect 
to explosives storage magazines maintained by Business A. This 
clarification ensures that personnel employed by or otherwise 
associated with one explosives facility will not ``assume the risk'' 
associated with another explosives facility's operations.
    The definition of the term ``manufacturer'' is being amended to 
include persons who assemble explosive materials from other explosive 
materials and/or non-explosive materials, such as fireworks and 
pyrotechnics. By adding ``assemblers'' to the definition, the marking 
requirements of section 55.109 will apply to persons assembling 
explosive materials.
    The definition of the term ``softwood'' is being amended to be 
consistent with the well-recognized industry standards of the NFPA.

B. Subpart C--Administrative and Miscellaneous Provisions

    Section 55.22 is being amended to clarify that copies of approved 
variances (rather than the applications) are to be kept by the 
permittee or licensee to whom they are issued so that they can be 
reviewed by ATF officers. This section is also being amended to provide 
that the Director may require the resubmission of all variances for the 
purpose of re-evaluation. For example, the Director may require the 
resubmission of all variances when there is a change of ownership, 
control, or personnel; at the time of renewal; or upon disclosure of a 
person's possible inability or unwillingness to comply with the terms 
of a variance.
    Section 55.46 is being amended to provide that the Chief, Firearms 
and Explosives Licensing Center (now known as the ``Chief, National 
Licensing Center'') may, in writing, require the applicant for license 
or permit renewal to file an original application for license or permit 
as required by section 55.45. This would be in addition to filing an 
application for license renewal on ATF F 5400.14 (part III), or 
application for permit renewal on ATF F 5400.15 (part III). This 
ensures compliance with existing requirements in part 55 and is 
consistent with the firearms regulations in part 178 of this chapter 
with respect to the renewal of Federal firearms licenses.
    Several amendments are being made to section 55.63, relating to 
changes in explosives magazines:
    1. Paragraph (a)(1) is being amended to clarify that magazines used 
for storage of explosives are subject to the table of distances and 
magazine construction requirements prescribed in sections 55.206 
through 55.211.
    2. Paragraphs (a)(2) and (a)(3) are being removed. The provisions 
of these paragraphs are considered unnecessary because they duplicate 
the standards specified in sections 55.206 through 55.211.
    3. Paragraph (a)(4) is being revised for clarification purposes and 
is being redesignated as paragraph (e).
    4. Paragraph (b), which exempts mobile or portable type 5 magazines 
from the requirements of section 55.63, is being amended by 
redesignating the paragraph as paragraph (f) and by providing that type 
3 magazines are also exempt from the requirements of this section. We 
are not proposing to exempt type 4 magazines from the notification 
provisions of this section, as such magazines are often used and 
relocated at the premises of fireworks companies. Due, in part, to the 
seasonal nature of their business, such companies often relocate type 4 
magazines during periods of high volume. In the interest of public 
safety, we will still require that such businesses notify ATF of 
relocations of type 4 magazines.
    5. Paragraphs (c) and (d) provide that the regional director 
(compliance) (now known as the ``Director of Industry Operations'') 
must be notified prior to repairing, reconstructing, or acquiring new 
magazines. These paragraphs further require that the regional director 
(compliance) be notified prior to commencing storage in a new or 
repaired magazine. We believe that the additional burden of this second 
notification to ATF after acquisition or repair and prior to storing is 
not justified. Accordingly, we are amending these paragraphs by 
redesignating them as paragraphs (b) and (c), respectively, and by 
removing the requirement that the regional director (compliance) be 
notified after the acquisition of a new magazine or the repair or 
reconstruction of an existing magazine.
    6. Finally, we are amending section 55.63 by adding a new paragraph 
(d) to

[[Page 4412]]

require licensees and permittees to notify ATF prior to the relocation 
of magazines. ATF has encountered recurring instances where industry 
members have relocated their explosives storage magazines to new 
locations. This has caused difficulty in administration of the 
regulations and has disclosed unsafe storage conditions in some 
instances where magazine relocations have been discovered. In the 
interest of public safety and the effective administration of the 
regulations, we believe that the notification provisions of this 
section should apply to the relocation of magazines.
    Sections 55.105(g), 55.106(d), and 55.108(b) are being removed as 
they are redundant. The exemption provisions contained in section 
55.141(b) make it clear that, except for the provisions pertaining to 
licensees, the requirements of part 55 do not apply to certain 
distributions of black powder under certain conditions. The sections 
noted above simply reiterate the applicable portions of section 
55.141(b). With the removal of paragraph (b) in section 55.108, 
paragraphs (c) and (d) of that section are being redesignated as 
paragraphs (b) and (c), respectively.

C. Subpart G--Records and Reports

    Section 55.121(a)(1) states that licensees and permittees must keep 
records pertaining to explosive materials in permanent form, i.e., in 
commercial invoices or record books. This section is being amended to 
specify that records may be kept in computer format, provided certain 
conditions are met. Computer recordkeeping has become a common industry 
practice and we have approved numerous variances allowing this 
practice. Paragraph (b) of section 55.121 is being amended by adding 
the word ``business'' before ``premises'' in the first sentence to 
clarify that this subsection refers to ``business premises'' as defined 
in section 55.11.
    Section 55.122(a), introductory text, is being amended to provide 
that the physical inventory required to be taken by licensed importers 
must consist of all the information specified in paragraph (b) of 
section 55.122, such as the manufacturer's marks of identification. 
This will facilitate the tracing of explosives that may be intended for 
criminal use. Paragraph (a)(4) is being amended to provide that all 
discrepancies disclosed between the physical inventory of explosive 
materials and the records required by part 55 must be reconciled in the 
importer's records by the close of the next business day. This will 
ensure that thefts and losses of explosives are more quickly detected. 
Paragraph (c) of section 55.122 is being amended to add the term 
``use'' to the recordkeeping requirements for licensed importers. This 
will require importers using explosive materials they import to keep 
records of such use. This is consistent with requirements that are 
being proposed for licensed manufacturers and dealers.
    Section 55.123, which relates to records maintained by licensed 
manufacturers, is being amended by revising the introductory text of 
paragraph (a) to provide that the physical inventory required to be 
taken by licensed manufacturers consists of all the information 
specified in paragraph (b) of this section, such as the manufacturer's 
marks of identification. This will facilitate the tracing of explosives 
that may be intended for criminal use. Paragraph (a)(4) is being 
amended to provide that all discrepancies disclosed between the 
physical inventory of explosive materials and the records required by 
part 55 must be reconciled in the manufacturer's records by the close 
of the next business day. This will ensure that thefts and losses of 
explosives are more quickly detected. Paragraphs (b)(2) through (b)(4) 
are being redesignated as paragraphs (b)(3) through (b)(5), 
respectively. New paragraph (b)(2) provides that records of acquisition 
kept by manufacturers of explosive materials must contain the 
importer's or manufacturer's name or brand name when explosives are 
acquired other than by their own manufacture. This is consistent with 
the requirements for manufacturer's disposition records and with the 
required records of acquisition for importers, dealers, and permittees. 
Paragraph (c) is being amended to require manufacturers to record their 
use of explosive materials, regardless of the source. This will require 
manufacturers using explosive materials they manufacture to keep 
records of such use. Since paragraph (d) is no longer necessary, it is 
being removed and paragraphs (e) and (f) are being redesignated as 
paragraphs (d) and (e), respectively.
    Section 55.124, regarding records maintained by licensed dealers, 
is being amended by providing in the introductory text of paragraph (a) 
that the physical inventory required to be taken by licensed dealers 
consists of all the information specified in paragraph (b) of this 
section, such as the manufacturer's marks of identification. This will 
facilitate the tracing of explosives that may be intended for criminal 
use. Paragraph (a)(4) is being amended to provide that all 
discrepancies disclosed between the physical inventory of explosive 
materials and the records required by part 55 must be reconciled in the 
dealer's records by the close of the next business day. This will 
ensure that thefts and losses of explosives are more quickly detected. 
Paragraph (c)(1) is being amended to require licensed dealers to record 
their use of explosive materials. This will require dealers using 
explosive materials that they are not distributing to other persons to 
keep records of such use.
    Section 55.125(a), introductory text, is being amended to provide 
that the physical inventory required to be taken by permittees consists 
of all the information specified in paragraph (b) of section 55.125, 
such as the manufacturer's marks of identification. This will 
facilitate the tracing of explosives that may be intended for criminal 
use. Paragraph (a)(4) is being amended to provide that all 
discrepancies disclosed between the physical inventory of explosive 
materials and the records required by part 55 must be reconciled in the 
permittee's records by the close of the next business day. This will 
ensure that thefts and losses of explosives are more quickly detected.
    Section 55.126(b) is being amended to require licensees and 
permittees to verify the identity of nonlicensees and nonpermittees 
purchasing explosive materials. Under the current regulations, ATF Form 
5400.4 must be executed by the buyer for purchases of explosive 
materials. A Federal explosives licensee or permittee who purchases 
explosive materials is not required to complete Form 5400.4. Before 
explosive materials are distributed to nonlicensees or nonpermittees, 
Form 5400.4 provides that the licensee or permittee must verify the 
identity of the buyer (distributee), either by acknowledging on the 
form that the buyer is known to the licensee or permittee or by 
obtaining from the buyer proof of identification (e.g., a driver's 
license). ATF believes that the phrase ``is known to me,'' as it 
currently appears on Form 5400.4, is ambiguous and lends itself to 
confusion and misinterpretation. We believe that it is in the best 
interests of public safety and our enforcement efforts to require that 
all nonlicensed/nonpermitted purchasers provide proof of identification 
prior to the distribution of explosive materials. Accordingly, we are 
amending section 55.126(b) to require that licensees and permittees 
obtain proof of identification from all nonlicensees or nonpermittees 
purchasing explosive materials. This requirement is consistent with 
respect

[[Page 4413]]

to purchases of firearms by nonlicensed individuals.
    Section 55.129 is being amended to require that where commercial 
explosives (except for defense articles subject to the Arms Export 
Control Act) are exported, exportation is to be in compliance with the 
Export Administration Act. We are also amending this section to require 
licensees to maintain proof of exportation of explosive materials to 
the actual end user. This is intended to prevent diversion activities.

D. Subpart H--Exemptions

    Section 55.141 is being amended by revising paragraph (a)(7) to 
clarify the items exempt from the requirements of part 55. Paragraph 
(a)(9) is being amended to remove the DOT's regulation cite (49 CFR 
parts 100 to 177) in order to eliminate possible confusion in the event 
these regulations are subsequently revised or removed.

E. Subpart K--Storage

    Section 55.206(a) currently states that magazines in which high 
explosives are stored must be a minimum distance from other high 
explosive magazines. This section is being amended to clarify that, 
except where magazines are ``combined'' as provided in footnote 2 of 
section 55.218, magazines in which high explosives are stored must be 
located no closer to magazines in which any explosive materials are 
stored, than the minimum distances specified in the table of distances 
for storage of explosive materials in section 55.218. This will ensure 
that all types of explosive materials will be stored appropriately when 
located in proximity to magazines containing high explosives. To be 
consistent with the proposed amended definition of ``highway,'' the 
word ``public'' is being removed in paragraph (b) of section 55.206. 
Paragraph (c)(1) of section 55.206 is being amended to require that 
minimum separation distances be placed between outdoor magazines 
containing any amount of blasting agents and inhabited buildings, 
highways, and passenger railways, per the table in section 55.218. This 
was previously unclear in the notes to the tables of distances in 
sections 55.218 and 55.220, and the fact that section 55.206 only 
specifies minimum separation distances for amounts over 50 pounds.
    Several amendments are being proposed with respect to section 
55.207:
    1. IME has suggested that ATF make all references to bullet 
resistance within part 55 consistent with its standard of \1/4\-inch 
steel lined with 3 inches of hardwood. In its letter, IME referred to 
section 55.207(a)(7)(ii) that describes the bullet-resistance standard 
for roof construction for type 1 magazines. Accordingly, this section 
is being amended to reflect the suggested standard of \1/4\-inch steel 
and 3 inches of hardwood. However, \3/16\-inch steel lined with 4 
inches of hardwood, which is currently prescribed in section 
55.207(a)(7)(ii), will still be considered bullet-resistant 
construction as referenced in ATF Ruling 76-18. We are also removing 
the parenthetical text in section 55.207(a)(7)(ii) to ensure that the 
exteriors of magazines are constructed with a sufficient amount of 
fire-resistant materials. In addition, this section is being amended to 
remove the word ``plate'' in the phrase ``plate steel.'' This provides 
consistency with the standards prescribed for other high explosives 
storage magazines.
    Paragraph (a)(8) of section 55.207 is being amended to increase the 
thickness of hardwood required for magazine door linings from 2 inches 
to 3 inches. Previously, ATF believed that a wall or door constructed 
of \1/4\-inch steel lined with 2 inches of hardwood would resist the 
penetration of a bullet, based on the standard test. The standard test 
involves firing a 150 grain M2 ball ammunition having a nominal muzzle 
velocity of 2700 feet per second from a .30 caliber rifle from a 
distance of 100 feet perpendicular to the wall or door (see ATF Rul. 
76-18). Examination of bullet-resistance tests conducted by IME 
indicates that the previous standard is not sufficient. Paragraph 
(a)(8) is being amended to reflect the standard recommended by IME. 
Accordingly, effective 1 year from the date of publication of the final 
rule in the Federal Register, all type 1 magazines must have \1/4\-inch 
steel doors lined with 3 inches of hardwood. This is consistent with 
the provisions of ATF Rul. 76-18. For the same reason explained above, 
this paragraph is also being amended to remove the word ``plate'' in 
the phrase ``plate steel.''
    2. Paragraph (a)(9)(v) of section 55.207 provides that, with 
respect to type 1 magazines, padlocks must have at least five tumblers 
and a case-hardened shackle of at least \3/8\-inch diameter. We believe 
that a \3/8\-inch diameter requirement is insufficient to prevent 
cutting the shackle. Accordingly, we are proposing that case-hardened 
shackles be at least \1/2\-inch diameter.
    3. Finally, section 55.207 is being amended by adding a new 
paragraph (c) that incorporates the provisions of ATF Ruling 76-18.
    Sections 55.208, 55.210, and 55.211 require that magazines be 
equipped with 2 hooded locks with at least \3/8\-inch shackles and five 
tumblers. In past years, ATF issued a number of variances allowing 
mobile outdoor type 2 and type 4 magazines to have only one lock, with 
no hood requirement. This variance was subsequently extended to the 
entire explosives industry. A review of explosives theft data indicates 
that in a significant number of explosives thefts access was gained to 
the explosives by cutting or prying the padlocks. Based on these 
findings, ATF has determined that the reduction in explosives magazine 
security allowed by these variances is inappropriate. Therefore, we are 
proposing to amend the regulations to require that all types 1, 2, 4, 
and 5 outdoor magazines (except for type 5 bins used to load bulk 
trucks), including vehicular/mobile magazines, be secured with 2 hooded 
locks with \1/2\-inch (rather than \3/8\-inch) shackles and five 
tumblers. We are proposing the same requirement for types 2, 4, and 5 
indoor magazines. Upon the effective date of the final rule, the above-
mentioned variances will no longer be valid. ATF is soliciting comments 
from the industry on the economic burden these actions will impose. 
Commenters should address such issues as whether it is physically and 
economically viable to lock all magazines as stated in the proposed 
regulations in sections 55.207 through 55.211 and whether such actions 
will afford increased security. In addition, commenters should address 
the costs associated with increasing the lock size requirements as 
stated above. Comments should contain specific estimates of the 
monetary cost of this action.
    Several other amendments are being proposed with respect to section 
55.208:
    1. The word ``exterior'' in the heading of paragraphs (a)(2) and 
(b)(2) is being removed for clarification purposes.
    2. Paragraph (a)(2) is being amended to impose a bullet-resistance 
standard of \1/4\-inch steel and 3 inches of hardwood for the 
construction of type 2 magazines. We are proposing that the effective 
date of this particular amendment be one year from the date of 
publication of the final rule in the Federal Register.
    3. Paragraphs (a)(2) and (b)(2) are being amended to add the 
exposed metal restriction specified in section 55.207(a)(11) in order 
to ensure that construction of type 2 magazines is such that there will 
exist a reduced chance of a sparking hazard.
    4. Paragraph (b)(1) is being amended to increase the poundage 
allowable for indoor storage of explosives from 50 pounds to 60 pounds. 
This is consistent with the standards for indoor storage set forth by 
IME. It also reflects the fact that

[[Page 4414]]

commercial explosives are now shipped in 55 and 60 pound cases. ATF 
believes that adoption of this proposal would not compromise safety.
    5. Paragraph (c) is being amended to clarify that a detonator box 
is a specific type of indoor magazine and that, therefore, detonator 
boxes must be stored indoors. There has been some confusion as to the 
requirements for the location of detonator boxes, and this amendment is 
intended to eliminate the confusion.
    6. Paragraph (c) is also being amended to ensure that construction 
of detonator boxes is such that there will exist a reduced chance of a 
sparking hazard. This will afford greater public safety.
    7. Finally, new paragraph (d) is being added to incorporate the 
provisions of ATF Ruling 76-18.
    Section 55.209 provides that for type 3 magazines 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. We are amending this section to 
replace the \3/8\-inch diameter requirement with \1/2\-inch for 
purposes of added security. We are also amending this section to ensure 
that construction of type 3 magazines is such that there will exist a 
reduced chance of a sparking hazard. We are not proposing to 
incorporate the provisions of ATF Ruling 76-18 because bullet-
resistance standards with respect to type 3 magazines were removed 
pursuant to T.D. ATF-87 (46 FR 40382, Aug. 7, 1981).
    Section 55.210 is being amended to provide in paragraph (a)(1) an 
additional method (i.e., use of a steering wheel locking device) by 
which vehicular magazines may be immobilized. Storage in this 
additional manner must be attended at all times. This is consistent 
with the requirements that have been imposed by ATF in issuing 
variances for temporary storage. The primary purpose of this amendment 
is to allow the temporary storage of low explosives on vehicles prior 
to use or shipment. ATF has processed numerous variance requests from 
the fireworks industry to temporarily store display fireworks (except 
for bulk salutes) on trucks prior to the delivery or set up of 
fireworks shows. ATF is aware that this practice promotes safety in 
that trucks are not hastily packed. Since other low explosives are 
subject to substantially the same security and safety-related 
requirements as display fireworks (except bulk salutes), we are also 
providing for temporary storage of these other low explosives. These 
provisions do not remove the construction requirements specified in 
section 55.210. It should also be noted that we are not proposing to 
amend the regulations to allow for similar temporary storage of high 
explosives (including bulk salutes) on trucks. This is due to the fact 
that most trucks used for transportation do not meet the bullet 
resistance requirements for storage of high explosives. Therefore, 
temporary storage of high explosives on trucks could pose a public 
safety hazard. However, ATF will consider variances for the temporary 
storage of high explosives on vehicles in cases in which the 
construction of the vehicle ensures that a bullet will not penetrate 
the vehicle. Paragraphs (a)(2) and (b)(2) are being amended to ensure 
that construction of type 4 magazines is such that there will exist a 
reduced chance of a sparking hazard. Paragraph (b)(1) is being amended 
to increase the indoor storage of low explosives from 50 to 60 pounds. 
This is consistent with industry shipment standards and IME 
recommendations.
    Several amendments are being proposed with respect to section 
55.211:
    1. Paragraph (a)(1) is being amended to provide that vehicular 
magazines must be immobilized by one of the following methods: (a) Have 
the wheels removed; (b) be equipped with a kingpin locking device; or 
(c) be equipped with a steering wheel locking device and, if 
unattended, secured by a fence and locked gate. Any person storing 
explosives in a magazine immobilized by use of a steering wheel locking 
device must inspect such magazine at least every 72 hours. This 
amendment allows the temporary storage of blasting agents on vehicles. 
ATF has processed numerous requests from the blasting industry to 
temporarily store blasting agents on trucks. We are aware that this 
practice promotes safety in that explosive materials are handled less 
frequently. This proposed amendment sets forth conditions for the 
temporary storage of blasting agents.
    2. Paragraph (a)(4) provides that, in general, padlocks for type 5 
magazines must have at least five tumblers and a case-hardened shackle 
of at least \3/8\-inch diameter. This paragraph also provides that 
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. As mentioned, 
a review of explosives theft data indicates that in a significant 
number of explosives thefts access was gained to the explosives by 
cutting the padlock. We believe a general requirement that type 5 
magazines be secured with two hooded locks with \1/2\-inch (rather than 
\3/8\-inch) diameter shackles is necessary. However, in the case of 
bins, we believe that the two hooded locks requirement is unwarranted 
due to the difficulty in accessing the bins. Accordingly, we are 
proposing to amend paragraph (a)(4) to provide that type 5 magazines 
must be secured with two hooded locks with \1/2\-inch diameter shackles 
and that bins used to load bulk trucks may 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 \1/2\-inch 
diameter.
    3. Paragraph (b)(1) is being amended to increase the indoor storage 
of blasting agents from 50 to 60 pounds. This is consistent with 
industry shipment standards and IME recommendations.
    Section 55.213(b)(1) is being amended to allow shock tube to be 
stored with detonators that will not mass detonate with electric 
squibs, safety fuse, igniters, and igniter cord in a type 4 storage 
magazine because these materials when stored together do not pose a 
mass detonation hazard.
    Section 55.217(b) is being amended to reference the correct NFPA 
publication and to clarify that all electrical outlets, switches, and 
devices containing electrical switches must be located outside 
magazines.
    Section 55.218 is being amended to remove the word ``public'' with 
respect to highways wherever it appears in the table headings, since 
under the proposed regulations the term ``highway'' can mean a private 
road. In addition, while not a specific regulatory proposal, we are 
considering amending the table of distances in this section to 
eliminate the column titled ``Public highways with traffic volume 3000 
or fewer vehicles/day.'' ATF believes that this table reference allows 
a diminished level of protection to travelers on smaller highways than 
is afforded to travelers on highways with greater traffic volume. 
Moreover, because roads may become more heavily traveled due to 
population growth, magazines that may have initially been placed to 
comply with the low-volume traffic column of the table can become 
noncompliant. We are also considering amending the table of distances 
in this section by changing the heading from ``Passenger railways--
public highways with traffic volume of more than 3,000 vehicles/day'' 
to ``Highways and passenger railways.'' We believe that this change 
would provide for the

[[Page 4415]]

consistent application of this table where highways are concerned and 
further facilitate consistent application of the proposed definition of 
``highway.'' ATF is soliciting comments on these issues.
    To be consistent with the proposed amended definition of 
``highway,'' the word ``public'' is being removed from footnote six at 
the end of the table in section 55.220.
    Section 55.222 is being amended to include fireworks process areas 
in the table heading. The footnotes at the end of the table are being 
amended to indicate that this table applies to outdoor areas in which 
fireworks are processed.
    Section 55.223 is being amended to clarify that the placement of 
explosive materials in a fireworks process area must comply with the 
requirements of the table of distances contained in this section at all 
times. We are also amending this section by removing the word 
``public'' with respect to highways in the title heading of the table, 
since under the proposed amended definition of the term a ``highway'' 
can be a private road.
    Section 55.224 is being amended to incorporate a table for the 
storage of display fireworks developed by the APA. The current table 
requires the storer to refer to section 55.218 for the storage of 
display fireworks in excess of 10,000 pounds to calculate distances 
separating magazines from inhabited buildings, public highways, 
passenger railways, and other magazines. The problem presented is that 
the distance requirements change drastically when going from section 
55.224 (for weights up to 10,000 pounds) to section 55.218 (for weights 
over 10,000 pounds). In comparing the two tables, there are also 
discrepancies in separation requirements for distances between 
magazines. APA proposed revising the table at section 55.224 to 
increase maximum allowable storage under section 55.224 to 200,000 
pounds. The revised table provides for more proportionate increases in 
distances for weights of materials above 10,000 pounds, and it provides 
for a smooth transition to the table at section 55.218 for weights 
above 200,000 pounds. ATF has reviewed the table and agrees that the 
adoption of APA's table will not jeopardize public safety. Bulk salutes 
remain subject to the table specified in section 55.218.
    In addition to the above, a technical nonsubstantive amendment is 
being made to section 55.224 by removing the parenthetical text in 
footnote 3 at the end of the table and adding in its place ``March 7, 
1990.'' This was the date that the provisions of section 55.224 became 
effective, pursuant to T.D. ATF-293.

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

A. Executive Order 12866

    We have determined that this proposed rule is not a significant 
regulatory action as defined in E.O. 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. 
The proposed amendments clarify the existing regulations and will have 
a minimal economic impact on the explosives industry. Furthermore, we 
certify that the revised rule will no longer have a significant 
economic impact on a substantial number of small entities. We base this 
certification on the lack of response we received to the RFA analysis 
set forth in T.D. ATF-293 and comments received on Notice No. 845.
    Accordingly, we certify that this proposed rule will not have a 
significant economic impact on a substantial number of small entities.

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:
    [sbull] 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;
    [sbull] The accuracy of the estimated burden associated with the 
proposed collections of information (see below);
    [sbull] How the quality, utility, and clarity of the information to 
be collected may be enhanced; and
    [sbull] 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 55.22(c), 55.63, and 55.129(b) and (c).
    This information is required to ensure that public safety is 
maintained with respect to explosives storage and accountability. The 
collections of information are mandatory. The likely respondents are 
businesses.
    With respect to 27 CFR 55.22(c):
    [sbull] Estimated total annual reporting and/or recordkeeping 
burden: 12.5 hours.
    [sbull] Estimated average burden hours per respondent and/or 
recordkeeper: 0.5 hours (30 minutes).
    [sbull] Estimated number of respondents and/or recordkeepers: 25.
    [sbull] Estimated annual frequency of responses: 25.
    With respect to 27 CFR 55.63:
    [sbull] Estimated total annual reporting and/or recordkeeping 
burden: 128 hours.
    [sbull] Estimated average burden hours per respondent and/or 
recordkeeper: 0.1 hours (6 minutes).
    [sbull] Estimated number of respondents and/or recordkeepers: 
1,281.
    [sbull] Estimated annual frequency of responses: 1,281.
    With respect to 27 CFR 55.129(b) and (c):
    [sbull] Estimated total annual reporting and/or recordkeeping 
burden: 33.3 hours.
    [sbull] Estimated average burden hours per respondent and/or 
recordkeeper: 0.03 hours (2 minutes).
    [sbull] Estimated number of respondents and/or recordkeepers: 
1,000.
    [sbull] Estimated annual frequency of responses: 1,000.
    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.

VI. 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.

[[Page 4416]]

    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) 
927-8525. 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 this notice and the comments received 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.

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 authors of this document are James P. Ficaretta, Firearms, 
Explosives, and Arson, and Chad Yoder, Public Safety Branch, 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, the Bureau of Alcohol, 
Tobacco and Firearms proposes to amend 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 second and last 
sentences in the definition for ``Business premises;'' by removing the 
words ``is'' and ``finished and'' in the definition for ``Fireworks 
process building'' and adding in their place the words ``are'' and 
``finishing or,'' respectively; by removing the word ``and'' in the 
definition for ``Fireworks shipping building'' and adding in its place 
the word ``or;'' by revising the definitions for ``Articles 
pyrotechnic,'' ``Bulk salutes,'' ``Consumer fireworks,'' ``Display 
fireworks,'' ``Flash powder,'' ``Hardwood,'' ``Highway,'' ``Inhabited 
building,'' ``Manufacturer,'' and ``Softwood;'' and by adding a 
definition for ``Fireworks process area'' to read as follows:


Sec.  55.11  Meaning of terms.

* * * * *
    Articles pyrotechnic. Pyrotechnic devices similar to consumer 
fireworks in chemical composition and construction but intended for 
professional rather than consumer use. Articles pyrotechnic must meet 
the weight limits for consumer fireworks and must be classified by the 
U.S. Department of Transportation as UN0431 or UN0432.
* * * * *
    Bulk salutes. A collection of salute shells or salute components. 
The term includes a collection of salute shells packaged with other 
types of aerial shells in quantities such that the salute shells 
comprise more than 50 percent of the total number of shells in the 
package.
* * * * *
    Consumer fireworks. Small firework devices designed to produce 
visible or audible effects by combustion and that are intended for use 
by consumers. The term includes devices designed to produce audible 
effects, 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. In addition, to be considered a ``consumer 
firework,'' a device must meet all applicable construction, chemical 
composition, and labeling requirements of the Consumer Product Safety 
Commission (CPSC), and it must be a device that the CPSC deems 
permissible for consumer use. Consumer fireworks must also be devices 
that are classified under the U.S. Department of Transportation 
hazardous material classification system as UN0336 or UN0337. The term 
also includes fused setpieces containing components that together do 
not exceed 50 mg of salute powder.
* * * * *
    Display fireworks. Large fireworks designed to produce visible or 
audible effects by combustion, deflagration, or detonation. The term 
includes, but is not limited to, salutes containing more than 130 mg of 
explosive materials, aerial shells containing more than 40 grams of 
pyrotechnic compositions, and other fireworks that do not fall within 
the definition of ``consumer fireworks.'' In addition, to be considered 
a ``display firework'' an item must be classified as UN0334 or UN0335 
under the U.S. Department of Transportation hazardous material 
classification system. The term also includes fused setpieces 
containing components that together exceed 50 mg of salute powder.
* * * * *
    Fireworks process area. Any area, not in a fireworks process 
building, where pyrotechnic compositions or explosive materials are 
mixed, pressed, processed or otherwise prepared for finishing or 
assembly; or any finishing or assembly area not in a fireworks process 
building.
* * * * *
    Flash powder. An explosive composition intended to produce a report 
or flash of light, typically containing, but not limited to, potassium 
perchlorate, or antimony sulfide, and aluminum metal or similar metals. 
(Also commonly known as ``salute powder'' or ``photo flash powder.'')
* * * * *

[[Page 4417]]

    Hardwood. Any close-grained wood such as oak, maple, ash, or 
hickory that is free from loose knots, spaces, wind shakes, or similar 
defects.
    Highway. Any street, alley, or road, including a privately 
financed, constructed, or maintained road, that is regularly and openly 
traveled by any member of the general public. For purposes of this 
definition, the term ``general public'' includes any and all 
individuals whose travel on a highway is not directly in connection 
with activities being undertaken at a particular facility at which 
explosives are manufactured, assembled, or stored. Individuals employed 
by or otherwise associated with one explosives facility will generally 
constitute members of the ``general public'' with respect to any other 
explosives facility.
* * * * *
    Inhabited building. Any building regularly occupied in whole or in 
part as a habitation for human beings, or any house of worship, 
schoolhouse, railroad station, store, or other structure where people 
are accustomed to assemble or to be present for any purpose, except any 
building occupied in connection with the manufacture, transportation, 
storage, or use of explosive materials. For purposes of this 
definition, a building occupied by a person will be considered to be 
``occupied in connection with the manufacture, transportation, storage, 
or use of explosive materials'' only with respect to the explosives 
operations conducted by the same person.
* * * * *
    Manufacturer. (a) Any person engaged in the business of 
manufacturing explosive materials for purposes of sale or distribution 
or for his own use; or
    (b) Any person engaged in the business of assembling explosive 
materials from explosive and/or non-explosive materials for purposes of 
sale or distribution or for his own use.
* * * * *
    Softwood. Any coarse-grained wood such as fir, hemlock, pine, or 
spruce that is free from loose knots, spaces, wind shakes, or similar 
defects.
* * * * *
    Par. 3. Section 55.22(c) is revised to read as follows:


Sec.  55.22  Alternate methods or procedures; emergency variations from 
requirements.

* * * * *
    (c) Retention of approved variations. The licensee or permittee 
will retain, as part of his records available for examination by ATF 
officers, any variance approved by the Director under this section. 
Upon request by the Director, previously approved variance requests 
must be resubmitted for a new determination.
    Par. 4. Section 55.46(a) is amended by adding a new sentence after 
the first sentence to read as follows:


Sec.  55.46  Renewal of license or permit.

    (a) * * * The Chief, Firearms and Explosives Licensing Center, by 
written notification may require the applicant for license or permit 
renewal to also file completed form ATF F 5400.13/5400.16 or ATF F 
5400.21 in the manner required by Sec.  55.45. * * *
* * * * *
    Par. 5. Section 55.63 is revised to read as follows:


Sec.  55.63  Notification of magazine changes.

    (a) General. Except as provided in paragraph (f) of this section, 
the requirements of this section are applicable to all magazines used 
for storage of explosives. Magazines used for temporary storage of 
explosives are subject to the table of distances and magazine 
construction requirements prescribed in Sec. Sec.  55.206--55.211.
    (b) Changes in magazine construction. A licensee or permittee who 
intends to make changes in construction of an existing magazine will 
notify the regional director (compliance) in accordance with paragraph 
(e) of this section, describing the proposed changes prior to making 
any changes. Unless otherwise advised by the regional director 
(compliance), changes in construction may commence.
    (c) Magazines acquired or constructed after permit or license is 
issued. A licensee or permittee who intends to construct or acquire 
additional magazines will notify the regional director (compliance) in 
accordance with paragraph (e) of this section describing the additional 
magazines, the proposed location of the 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.
    (d) Relocation of magazines. A licensee or permittee who intends to 
change the location of an existing magazine will notify the regional 
director (compliance) in accordance with paragraph (e) of this section 
describing the proposed changes in location prior to making any 
changes. Unless otherwise advised by the regional director 
(compliance), magazines may be relocated after explosives are removed 
from the magazine. (See also subpart K of this part for storage 
requirements.)
    (e) Notification of regional director (compliance). 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 received 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.
    (f) Exception. Type 3 magazines and mobile or portable type 5 
magazines are exempt from the requirements of paragraphs (b), (c), and 
(d) of this section.


Sec.  55.105(g)  [Removed]

    Par. 6. Section 55.105(g) is removed.


Sec.  55.106(d)  [Removed]

    Par. 7. Section 55.106(d) is removed.


Sec.  55.108  [Amended]

    Par. 8. Section 55.108 is amended by removing paragraph (b) and by 
redesignating paragraphs (c) and (d) as paragraphs (b) and (c).
    Par. 9. Section 55.121 is amended by revising paragraph (a)(1) and 
by adding the word ``business'' before ``premises'' in the first 
sentence of paragraph (b) to read as follows:


Sec.  55.121  General.

    (a)(1) Licensees and permittees will keep records pertaining to 
explosive materials in permanent form (i.e., commercial invoices, 
record books) and in the manner required in this subpart. Computer 
recordkeeping systems may be used to keep records pertaining to 
explosive materials, provided the following conditions are met:
    (i) The system contains all the information required in this 
subpart;
    (ii) The system can be queried by date code or date shift code and/
or lot number;
    (iii) The system has a daily memory backup capability acceptable to 
ATF, such as disk or tape;
    (iv) The system is capable of providing a printout of all records 
for purposes of inspection by ATF, when the system memory is purged, or 
if business is discontinued;
    (v) The computer printout contains a record of explosives in 
inventory, as well as all that were sold during the period covered, 
sequentially, by date of acquisition;
    (vi) The system accounts for and records all explosive materials 
returned;

[[Page 4418]]

    (vii) The system records both the manufacturer and the importer of 
foreign-made explosives;
    (viii) The system records the names and addresses of the 
distributee (buyer), and in the case of a corporation or other business 
entity, its authorized representative or agent. An ATF Form 5400.4 
transaction number may be used to reference additional information, 
such as date of birth, place of birth, identification used, etc.;
    (ix) The system cannot rely on invoices or other paper/manual 
systems to provide any of the required information. It must be self 
contained; and
    (x) If the business is discontinued, all records, including a final 
printout, must be forwarded to the ATF Out-of-Business Records Center, 
or any ATF office in the region in which the business was located.
* * * * *
    Par. 10. Section 55.122 is amended by adding a sentence after the 
first sentence in the introductory text of paragraph (a); by adding a 
sentence after the fourth sentence in paragraph (a)(4), before the 
parenthetical text ``(See also Sec.  55.127.)''; by revising the 
introductory text of paragraph (c); and by revising paragraph (c)(1) to 
read as follows:


Sec.  55.122  Records maintained by licensed importers.

    (a) * * * Such inventory will consist of all the information 
required in paragraph (b) of this section. * * *
    (4) * * * All discrepancies disclosed between the physical 
inventory of explosive materials and the records required by this part 
must be reconciled in the records by the close of the next business 
day. * * *
* * * * *
    (c) Each licensed importer must, not later than the close of the 
next business day following the date of use or date of distribution of 
any explosive materials to another licensee or a permittee, enter in a 
separate record the following information:
    (1) Date of use or date of disposition.
* * * * *
    Par. 11. Section 55.123 is amended by adding a sentence after the 
first sentence in the introductory text of paragraph (a); by adding a 
sentence after the fourth sentence in paragraph (a)(4), before the 
parenthetical text ``(See also Sec.  55.127.)''; by redesignating 
paragraphs (b)(2) through (b)(4) as paragraphs (b)(3) through (b)(5); 
by adding a new paragraph (b)(2); by revising paragraph (c); by 
removing paragraph (d); and by redesignating paragraphs (e) and (f) as 
paragraphs (d) and (e) to read as follows:


Sec.  55.123  Records maintained by licensed manufacturers.

    (a) * * * Such inventory will consist of all the information 
required in paragraph (b) of this section. * * *
    (4) * * * All discrepancies disclosed between the physical 
inventory of explosive materials and the records required by this part 
must be reconciled in the records by the close of the next business 
day. * * *
    (b) * * *
    (2) Name or brand name of manufacturer or name of importer, as 
applicable, if acquired other than by his own manufacture.
* * * * *
    (c)(1) Each licensed manufacturer must, not later than the close of 
the next business day following the date of use or distribution of any 
explosive materials to another licensee or a permittee, enter in a 
separate record the following information:
    (i) Date of use or date of disposition.
    (ii) Name or brand name of manufacturer or name of importer, as 
applicable, if acquired other than by his own manufacture.
    (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).
    (vi) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (2) Exception. A licensed manufacturer is exempt from the 
recordkeeping requirements of paragraph (c)(1) of this section if the 
explosive materials are manufactured for his own use and used within a 
24-hour period at the same site.
* * * * *
    Par. 12. Section 55.124 is amended by adding a sentence after the 
first sentence in the introductory text of paragraph (a), by adding a 
sentence after the fourth sentence in paragraph (a)(4), before the 
parenthetical text ``(See also Sec.  55.127.)'', and by revising 
paragraph (c)(1) to read as follows:


Sec.  55.124  Records maintained by licensed dealers.

    (a) * * * Such inventory will consist of all the information 
required in paragraph (b) of this section. * * *
    (4) * * * All discrepancies disclosed between the physical 
inventory of explosive materials and the records required by this part 
must be reconciled in the records by the close of the next business 
day. * * *
* * * * *
    (c)(1) Date of use or date of disposition.
* * * * *
    Par. 13. Section 55.125 is amended by adding a sentence after the 
first sentence in the introductory text of paragraph (a) and by adding 
a sentence after the fourth sentence in paragraph (a)(4), before the 
parenthetical text ``(See also Sec.  55.127)'', to read as follows:


Sec.  55.125  Records maintained by permittees.

    (a) * * * Such inventory will consist of all the information 
required in paragraph (b) of this section. * * *
    (4) * * * All discrepancies disclosed between the physical 
inventory of explosive materials and the records required by this part 
must be reconciled in the records by the close of the next business 
day. * * *
* * * * *
    Par. 14. Section 55.126(b) is revised to read as follows:


Sec.  55.126  Explosives transaction record.

* * * * *
    (b) 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.  55.105(c), the licensee or permittee distributing 
the explosive materials will:
    (1) Obtain an executed ATF F 5400.4 from the distributee that 
contains all of the information required on the form and by the 
regulations in this part; and
    (2) Cause the distributee to be identified in any manner 
customarily used in commercial transactions (e.g., a driver's license) 
and will note on the Form 5400.4 the type of identification used and 
the identification number.
* * * * *
    Par. 15. Section 55.129 is amended by designating the existing 
paragraph as paragraph (a), by revising the first sentence in newly 
designated paragraph (a), and by adding new paragraphs (b) and (c) to 
read as follows:


Sec.  55.129  Exportation.

    (a) 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), the Export Administration Act (50 U.S.C. APP. 2401 et 
seq.), and the

[[Page 4419]]

Export Administration Regulations, 15 CFR, chapter VII, subchapter C. * 
* *
    (b) The licensee or permittee will retain as part of his records 
available for examination by ATF officers a copy of the export license 
and the following information:
    (1) A certificate of lading executed by a Customs officer of the 
foreign country to which the explosive materials are exported; or
    (2) A sworn statement of the foreign consignee covering the receipt 
of the explosive materials; or
    (3) The return receipt, or a reproduced copy thereof, signed by the 
addressee or his agent, where the shipment of explosive materials was 
made by insured or registered parcel post.
    (c) Proof of exportation will be retained by the licensee as part 
of his permanent records and made available for inspection by any ATF 
officer.
    Par. 16. Section 55.141 is amended by revising paragraphs (a)(7), 
and by removing ``,49 CFR Parts 100 to 177,'' in paragraph (a)(9) to 
read as follows:


Sec.  55.141  Exemptions.

    (a) * * *
    (7) The importation and distribution of--
    (i) Consumer fireworks and articles pyrotechnic, as defined under 
Sec.  55.11;
    (ii) Explosive auto alarms, that are tubular devices containing a 
small amount of explosive composition and igniting compound, which are 
ignited by an electric spark. These devices must be so designed that 
they will neither burst, nor cause external flame on functioning;
    (iii) Toy propellant devices and toy smoke devices consisting of 
small paper or composition tubes or containers containing a small 
charge of slow burning propellant powder or smoke producing powder. 
These devices must be so designed that they will neither burst, nor 
cause external flame on functioning and ignition elements, if attached, 
must be of a design approved by the Department of Transportation 
Associate Administrator for Hazardous Materials Safety (or other 
official who is designated under Department of Transportation 
regulations);
    (iv) Cigarette loads, trick matches, and trick noise makers, 
explosive, of a type approved by the Department of Transportation 
Associate Administrator for Hazardous Materials Safety (or other 
official who is designated under Department of Transportation 
regulations) and described as follows:
    (A) Cigarette loads consisting of wooden pegs to which are affixed 
a small amount of explosive composition;
    (B) Trick matches consisting of book matches, strike anywhere 
matches, or strike-on-box matches that have small amounts of explosive 
or pyrotechnic composition affixed to the match stem just below the 
match head;
    (C) Trick noise makers, explosive, consisting of spheres containing 
a small amount of explosive composition; and
    (v) Model rocket motors consisting of ammonium perchlorate 
composite propellant, black powder, or other similar low explosives; 
containing no more than 62.5 grams of total propellant weight and 
designed as single use motors or as reload kits capable of reloading no 
more than 62.5 grams of propellant into a reusable motor casing.
* * * * *
    Par. 17. Section 55.206 is amended by revising paragraph (a), by 
removing the word ``public'' in paragraph (b), and by revising 
paragraph (c)(1) to read as follows:


Sec.  55.206  Location of magazines.

    (a) Outdoor magazines in which any high explosives are stored must 
be located no closer to inhabited buildings, passenger railways, 
highways, or other magazines in which explosive materials are stored, 
than the minimum distances specified in the table of distances for 
storage of explosive materials in Sec.  55.218.
* * * * *
    (c)(1) Outdoor magazines in which blasting agents are stored must 
be located no closer to inhabited buildings, passenger railways, or 
highways than the minimum distances specified in the table of distances 
for storage of explosive materials in Sec.  55.218.
* * * * *
    Par. 18. Section 55.207 is amended by revising paragraph 
(a)(7)(ii); by adding a new paragraph (a)(7)(iii); by revising the 
first sentence in paragraph (a)(8); by removing ``\3/8\ inch'' in 
paragraph (a)(9)(v) and adding in its place ``\1/2\ inch''; and by 
adding new paragraph (c) to read as follows:


Sec.  55.207  Construction of type 1 magazines.

* * * * *
    (a) * * *
    (7) * * *
    (ii) A fabricated metal roof constructed of \1/4\-inch steel lined 
with three inches of hardwood.
    (iii) Any of the bullet-resistant construction criteria specified 
in paragraph (c) of this section.
    (8) Doors. All doors are to be constructed of not less than \1/4\-
inch steel and, effective [Date 1 year after the date of publication of 
the final rule in the Federal Register], lined with at least three 
inches of hardwood, or otherwise be constructed in accordance with the 
bullet-resistant construction criteria specified in paragraph (c) of 
this section. * * *
* * * * *
    (c) Alternate construction standards for storage facilities with 
respect to bullet resistance. Storage facilities (magazines) that are 
constructed according to any of the following minimum specifications 
are bullet resistant. (All steel and wood dimensions indicated are 
actual thicknesses. To meet the concrete block and brick dimensions 
indicated, the manufacturer's represented thicknesses may be used.)
    (1) Exterior of \5/8\-inch steel, lined with an interior of any 
type of non-sparking material;
    (2) Exterior of \1/2\-inch steel, lined with an interior of not 
less than \3/8\-inch plywood;
    (3) Exterior of \3/8\-inch steel, lined with an interior of two 
inches of hardwood;
    (4) Exterior of \3/8\-inch steel, lined with an interior of three 
inches of softwood or 2\1/4\ inches of plywood;
    (5) Exterior of \1/4\-inch steel, lined with an interior of five 
inches of softwood or 5\1/4\ inches of plywood;
    (6) Exterior of \1/4\-inch steel, lined with an intermediate layer 
of two inches of hardwood and an interior lining of 1\1/2\ inches of 
plywood;
    (7) Exterior of \3/16\-inch steel, lined with an interior of four 
inches of hardwood;
    (8) Exterior of \3/16\-inch steel, lined with an interior of seven 
inches of softwood or 6-inches plywood;
    (9) Exterior of \3/16\-inch steel, lined with an intermediate layer 
of three inches of hardwood and an interior lining of \3/4\-inch 
plywood;
    (10) Exterior of \1/8\-inch steel, lined with an interior of five 
inches of hardwood;
    (11) Exterior of \1/8\-inch steel, lined with an interior of nine 
inches of softwood;
    (12) Exterior of \1/8\-inch steel, lined with an intermediate layer 
of four inches of hardwood and an interior lining of \3/4\-inch 
plywood;
    (13) Exterior of any type of fire-resistant material that is 
structurally sound, lined with an intermediate layer of four inches 
solid concrete block or four inches solid brick or four inches of solid 
concrete, and an interior lining of \1/2\-inch plywood placed securely 
against the masonry lining;
    (14) Standard eight-inch concrete block with voids filled with 
well-tamped sand/cement mixture;
    (15) Standard eight-inch solid brick;
    (16) Exterior of any type of fire-resistant material that is 
structurally

[[Page 4420]]

sound, lined with an intermediate six-inch space filled with well-
tamped dry sand or well-tamped sand/cement mixture.
    (17) Exterior of \1/8\-inch steel, lined with a first intermediate 
layer of \3/4\-inch plywood, a second intermediate layer of 3 \5/8\ 
inches well-tamped dry sand or sand/cement mixture and an interior 
lining of \3/4\-inch plywood;
    (18) Exterior of any type of fire-resistant material, lined with a 
first intermediate layer of \3/4\-inch plywood, a second intermediate 
layer of 3 \5/8\ inches well-tamped dry sand or sand/cement mixture, a 
third intermediate layer of \3/4\-inch plywood, and a fourth 
intermediate layer of two inches of hardwood or 14-gauge steel and an 
interior lining of \3/4\-inch plywood; or
    (19) Eight-inch thick solid concrete.
    Par. 19. Section 55.208 is amended by revising paragraph (a)(2); by 
removing ``\3/8\-inch'' in paragraph (a)(4)(v) and adding in its place 
``\1/2\-inch''; by removing the number ``50'' wherever it appears in 
paragraph (b)(1) and adding in its place the number ``60;'' by removing 
the word ``Exterior'' in the title heading of paragraph (b)(2); by 
adding a new paragraph (b)(2)(iii); by removing ``\3/8\-inch'' wherever 
it appears in paragraph (b)(4)(v) and adding in its place ``\1/2\-
inch''; by revising paragraph (c); and by adding new paragraph (d) to 
read as follows:


Sec.  55.208  Construction of type 2 magazines.

* * * * *
    (a) * * *
    (2) Construction. (i) Outdoor magazines, including doors, are to be 
constructed of not less than \1/4\-inch steel and, effective January 
29, 2004, lined with at least three inches of hardwood, or otherwise be 
constructed in accordance with the bullet-resistant construction 
criteria specified in Sec.  55.207(c). Magazines with top openings will 
have lids with water-resistant seals or that overlap the sides by at 
least one inch when in a closed position.
    (ii) No sparking material is to be exposed to contact with the 
stored explosive materials. All ferrous metal nails in the floor and 
sidewalls that might be exposed to contact with explosive materials 
must be blind nailed, counter-sunk, or covered with a nonsparking 
lattice work or other nonsparking material.
* * * * *
    (b) * * *
    (2) * * *
    (iii) No sparking material is to be exposed to contact with the 
stored explosive materials. All ferrous metal nails in the floor and 
sidewalls that might be exposed to contact with explosive materials 
must be blind nailed, counter-sunk, or covered with a nonsparking 
lattice work or other nonsparking material.
* * * * *
    (c) Detonator boxes. Magazines for detonators in quantities of 100 
or less must be stored indoors and are to have sides, bottoms, and 
doors constructed of not less than number 12-gauge (.1046 inches) metal 
and lined with a nonsparking material. No sparking material is to be 
exposed to contact with the stored explosive materials. All ferrous 
metal nails in the floor and side walls that might be exposed to 
contact with explosive materials must be blind nailed, counter-sunk, or 
covered with a nonsparking lattice work or other 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 \1/2\-inch diameter is sufficient for locking purposes.
    (d) Alternate construction standards for storage facilities with 
respect to bullet resistance. Storage facilities (magazines) that are 
constructed according to any of the following minimum specifications 
are bullet resistant. (All steel and wood dimensions indicated are 
actual thicknesses. To meet the concrete block and brick dimensions 
indicated, the manufacturer's represented thicknesses may be used.)
    (1) Exterior of \5/8\-inch steel, lined with an interior of any 
type of non-sparking material;
    (2) Exterior of \1/2\-inch steel, lined with an interior of not 
less than \3/8\-inch plywood;
    (3) Exterior of \3/8\-inch steel, lined with an interior of two 
inches of hardwood;
    (4) Exterior of \3/8\-inch steel, lined with an interior of three 
inches of softwood or 2\1/4\ inches of plywood;
    (5) Exterior of \1/4\-inch steel, lined with an interior of five 
inches of softwood or 5\1/4\ inches of plywood;
    (6) Exterior of \1/4\-inch steel, lined with an intermediate layer 
of two inches of hardwood and an interior lining of 1\1/2\ inches of 
plywood;
    (7) Exterior of \3/16\-inch steel, lined with an interior of four 
inches of hardwood;
    (8) Exterior of \3/16\-inch steel, lined with an interior of seven 
inches of softwood or 6\3/4\ inches plywood;
    (9) Exterior of \3/16\-inch steel, lined with an intermediate layer 
of three inches of hardwood and an interior lining of \3/4\-inch 
plywood;
    (10) Exterior of \1/8\-inch steel, lined with an interior of five 
inches of hardwood;
    (11) Exterior of \1/8\-inch steel, lined with an interior of nine 
inches of softwood;
    (12) Exterior of \1/8\-inch steel, lined with an intermediate layer 
of four inches of hardwood and an interior lining of \3/4\-inch 
plywood;
    (13) Exterior of any type of fire-resistant material that is 
structurally sound, lined with an intermediate layer of four inches 
solid concrete block or four inches solid brick or four inches of solid 
concrete, and an interior lining of \1/2\-inch plywood placed securely 
against the masonry lining;
    (14) Standard eight-inch concrete block with voids filled with 
well-tamped sand/cement mixture;
    (15) Standard eight-inch solid brick;
    (16) Exterior of any type of fire-resistant material that is 
structurally sound, lined with an intermediate six-inch space filled 
with well-tamped dry sand or well-tamped sand/cement mixture.
    (17) Exterior of \1/8\-inch steel, lined with a first intermediate 
layer of \3/4\-inch plywood, a second intermediate layer of 3 \5/8\ 
inches well-tamped dry sand or sand/cement mixture and an interior 
lining of \3/4\-inch plywood;
    (18) Exterior of any type of fire-resistant material, lined with a 
first intermediate layer of \3/4\-inch plywood, a second intermediate 
layer of 3 \5/8\ inches well-tamped dry sand or sand/cement mixture, a 
third intermediate layer of ``-inch plywood, and a fourth intermediate 
layer of two inches of hardwood or 14-gauge steel and an interior 
lining of \3/4\-inch plywood; or
    (19) Eight-inch thick solid concrete.
    Par. 20. Section 55.209 is amended by adding two new sentences 
after the third sentence and by removing ``\3/8\-inch'' and adding in 
its place ``\1/2\-inch'' to read as follows:


Sec.  55.209  Construction of type 3 magazines.

    * * * No sparking material is to be exposed to contact with the 
stored explosive materials. All ferrous metal nails in the floor and 
sidewalls that might be exposed to contact with explosive materials 
must be blind nailed, counter-sunk, or covered with a nonsparking 
lattice work or other nonsparking material. * * *
    Par. 21. Section 55.210 is amended by revising paragraph (a)(1); by 
adding two new sentences after the first sentence in paragraph (a)(2); 
by removing ``\3/8\ inch'' in paragraph (a)(4)(v) and adding in its

[[Page 4421]]

place ``\1/2\-inch''; by removing the number ``50'' wherever it appears 
in paragraph (b)(1) and adding in its place the number ``60;'' by 
adding two new sentences after the first sentence in paragraph (b)(2); 
and by removing ``\3/8\ inch'' wherever it appears in paragraph 
(b)(4)(v) and adding in its place ``\1/2\-inch'' to read as follows:


Sec.  55.210  Construction of type 4 magazines.

* * * * *
    (a) * * * (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 must 
be provided. Vehicular magazines must be immobilized by one of the 
following methods:
    (i) Have wheels removed;
    (ii) Be equipped with a kingpin locking device; or
    (iii) Be equipped with a steering wheel locking device. Storage in 
this manner must be attended at all times.
    (2) * * * No sparking material is to be exposed to contact with the 
stored explosive materials. All ferrous metal nails in the floor and 
sidewalls that might be exposed to contact with explosive materials 
must be blind nailed, counter-sunk, or covered with a nonsparking 
lattice work or other nonsparking material.
* * * * *
    (b) * * *
    (2) * * * No sparking material is to be exposed to contact with the 
stored explosive materials. All ferrous metal nails in the floor and 
sidewalls that might be exposed to contact with explosive materials 
must be blind nailed, counter-sunk, or covered with a nonsparking 
lattice work or other nonsparking material. * * *
* * * * *
    Par. 22. Section 55.211 is amended by revising paragraph (a)(1); by 
revising the second and fourth sentences in paragraph (a)(4); by 
revising paragraph (b)(1); and by removing ``\3/8\ inch'' wherever it 
appears in paragraph (b)(4)(v) and adding in its place ``\1/2\-inch'' 
to read as follows:


Sec.  55.211  Construction of type 5 magazines.

* * * * *
    (a) * * * (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 must be provided. 
Vehicular magazines must be immobilized by one of the following 
methods:
    (i) Have wheels removed;
    (ii) Be equipped with a kingpin locking device; or
    (iii) Be equipped with a steering wheel locking device and, if the 
magazine is unattended, secured by a fence and locked gate. Any person 
storing explosives materials in this manner must inspect such magazine 
at least once every 72 hours.
* * * * *
    (4) * * * Padlocks must have at least five tumblers and a case-
hardened shackle of at least \1/2\-inch diameter. * * * Bins used to 
load bulk trucks may 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 \1/2\-inch diameter. * * *
* * * * *
    (b) * * * (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. The indoor storage of blasting 
agents must not exceed a quantity of 60 pounds. More than one indoor 
magazine may be located in the same building if the total quantity of 
explosive materials stored does not exceed 60 pounds.
* * * * *


Sec. 55.213  [Amended]

    Par. 23. Section 55.213 is amended by adding ``shock tube,'' after 
``safety fuse,'' in paragraph (b)(1).
    Par. 24. Section 55.217 is amended by revising the section heading 
and paragraph (b) to read as follows:


Sec.  55.217  Lighting and electrical switches.

* * * * *
    (b) Electric lighting used in any explosives storage magazine must 
meet the standards prescribed by the ``National Electrical Code'' and 
the National Fire Protection Association, NFPA 495, for the conditions 
present in the magazine at any time. All electrical outlets, switches, 
and devices containing electrical switches are to be located outside of 
the magazine and also meet the standards prescribed by the National 
Electrical Code.
* * * * *


Sec. 55.218  [Amended]

    Par. 25. Section 55.218 is amended by removing the word ``public'' 
wherever it appears in the table headings.


Sec.  55.220  [Amended]

    Par. 26. Section 55.220 is amended by removing the word ``public'' 
in footnote 6 at the end of the table.
    Par. 27. Section 55.222 is amended by revising the section heading 
and footnotes 3, 4, and 5 at the end of the table, and by adding new 
footnotes 6 and 7 to read as follows:


Sec.  55.222  Table of distances between fireworks process buildings, 
fireworks process areas, and fireworks nonprocess buildings.\6\,\7\

* * * * *
    \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 and fireworks process 
areas where consumer fireworks or articles pyrotechnic are being 
processed must 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 or fireworks process area. Finished display 
fireworks may not be stored in a fireworks process building or 
fireworks process area.
    \5\ A maximum of 10 pounds of flash powder, either in loose form or 
in assembled units, is permitted in any fireworks process building or 
fireworks process area. Quantities in excess of 10 pounds must be kept 
in an approved magazine.
    \6\ The placement of explosive materials in a fireworks process 
area must comply with the requirements of this table of distances at 
all times.
    \7\ This table specifies minimum required separation distances from 
fireworks process buildings and fireworks process areas to other 
fireworks process buildings and fireworks process areas; and from 
fireworks process buildings and fireworks process areas to fireworks 
nonprocess buildings.
    Par. 28. Section 55.223 is amended by revising the section heading, 
by removing the table heading, and by adding a new footnote 6 at the 
end of the table to read as follows:


Sec.  55.223  Table of distances from fireworks process buildings and 
fireworks process areas to passenger railways, highways, and fireworks 
plant buildings.\3\, \4\, \5\, \6\

* * * * *
    \6\ The placement of explosive materials in a fireworks process 
area must comply with the requirements of this table of distances at 
all times.
    Par. 29. Section 55.224 is amended by revising the table and by 
removing the parenthetical text in footnote 3 at the end of the table 
and adding in its place ``March 7, 1990'' to read as follows:


Sec.  55.224  Table of distances for the storage of display fireworks 
(except bulk salutes).

[[Page 4422]]



------------------------------------------------------------------------
                             Distance between
                          magazine and inhabited     Distance between
Net weight of fireworks    building, passenger     magazines \2\ \3\ \4\
      \1\ (pounds)       railway, or highway \2\          (feet)
                              \3\ \4\ (feet)
------------------------------------------------------------------------
              0-1000                      150                      100
           1001-5000                      230                      150
          5001-10000                      300                      200
         10001-15000                      360                      200
         15001-20000                      420                      200
         20001-30000                      480                      225
         30001-40000                      625                      250
         40001-50000                      675                      275
         50001-60000                      910                      300
         60001-75000                     1500                      325
        75001-100000                     1750                      375
       100001-200000                     2000                      500
        Above 200000     Use table Sec.   55.218  ......................
------------------------------------------------------------------------

* * * * *

    Signed: August 12, 2002.
Bradley A. Buckles,
Director.

    Approved: January 7, 2003.
Timothy E. Skud,
Deputy Assistant Secretary, (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 03-1946 Filed 1-28-03; 8:45 am]
BILLING CODE 4810-31-P