[Title 27 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2003 Edition]
[From the U.S. Government Printing Office]




[[Page i]]



                    27


          Part 200 to End

                         Revised as of April 1, 2003

Alcohol, Tobacco Products and Firearms





          Containing a codification of documents of general 
          applicability and future effect
          As of April 1, 2003
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register


                                      

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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2003



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                            Table of Contents



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

  Title 27:
          Chapter I--Alcohol and Tobacco Tax and Trade Bureau, 
          Department of the Treasury (Continued)                     3
          Chapter II--Bureau of Alcohol, Tobacco, Firearms, 
          and Explosives, Department of Justice                     87
  Finding Aids:
      Table of CFR Titles and Chapters........................     265
      Alphabetical List of Agencies Appearing in the CFR......     283
      List of CFR Sections Affected...........................     293


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

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  27 CFR 252.1 refers 
                       to title 27, part 252, 
                       section 1.

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

[[Page v]]

                               EXPLANATION

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

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

    The appropriate revision date is printed on the cover of each 
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OMB CONTROL NUMBERS

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Federal agencies to display an OMB control number with their information 
collection request. 

[[Page vi]]

Many agencies have begun publishing numerous OMB 
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the revision dates of the 50 CFR titles.

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[[Page vii]]

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

April 1, 2003.


                               THIS TITLE

    Title 27--Alcohol, Tobacco Products, and Firearms is composed of two 
volumes, parts 1-199 and part 200 to end. The contents of these volumes 
represent all current regulations issued by the Bureau of Alcohol and 
Tobacco Tax and Trade Bureau, Department of the Treasury, and the Bureau 
of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice, as 
of April 1, 2003.




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            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS




                  (This book contains part 200 to End)

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

chapter I--Alcohol and Tobacco Tax and Trade Bureau, 
  Department of the Treasury (Continued)....................         252

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

Cross References: U.S. Customs Service, Department of the Treasury: See 
  19 CFR chapter I.

  Federal Trade Commission: See 16 CFR chapter I.

  Food and Drug Administration, Department of Health and Human Services: 
See 21 CFR chapter I.

  Foreign Trade Statistics, Bureau of the Census, Department of 
Commerce: See 15 CFR part 30.

  Postal Service: See 39 CFR 111.5(a)(2)(iii) or Domestic Mail Manual 
123.3.

  Other regulations issued by the Department of the Treasury appear in 
title 26 and 31 CFR chapter I.


Abbreviations:
    The following abbreviations are used in this chapter:
    ATF = Alcohol, Tobacco and Firearms.
    TD = Treasury Decision.

[[Page 3]]



 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                          TREASURY (CONTINUED)




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


  Editorial Note: The regulations appearing in this title were 
originally issued by the Federal Alcohol Administration, which was 
abolished by Reorganization Plan No. III, Apr. 2, 1940, 5 FR 2107, 3 
CFR, 1940 Supp. Treasury Order 30, June 12, 1940, 5 FR 2212, issued 
under sections 2 and 8 of Reorganization Plan No. III (54 Stat. 1232) 
provided that these regulations continue in effect as regulations of the 
Bureau of Alcohol, Tobacco and Firearms.

    SUBCHAPTER M--ALCOHOL, TOBACCO AND OTHER EXCISE TAXES (CONTINUED)
Part                                                                Page
200-251         [Reserved]
252             Exportation of liquors......................           5
275             Importation of tobacco products and 
                    cigarette papers and tubes..............          51
285             [Reserved]

Supplementary Publications: Additional supplementary publications are 
  issued covering individual parts of the Alcohol, Tobacco and Firearms 
  Regulations, the Tobacco Tax Guide, and Regulations Under Tax 
  Conventions.

[[Page 5]]



    SUBCHAPTER M--ALCOHOL, TOBACCO AND OTHER EXCISE TAXES (CONTINUED)





PART 252--EXPORTATION OF LIQUORS--Table of Contents




                            Subpart A--Scope

Sec.
252.1  General.
252.2  Forms prescribed.
252.3  Related regulations.
252.4  Delegations of the Director.

                         Subpart B--Definitions

252.11  Meaning of terms.

                   Subpart C--Miscellaneous Provisions

      Withdrawal or Lading for Use on Certain Vessels and Aircraft

252.20  Alternate methods or procedures; and emergency variations from 
          requirements.
252.21  General.
252.22  Vessels employed in the fisheries.
252.23  Reciprocating foreign countries.

                     Manufacturing Bonded Warehouses

252.25  General.

                        Customs Bonded Warehouses

252.26  Entry of distilled spirits into customs bonded warehouses.
252.27  Entry of wine into customs bonded warehouses.
252.28  Withdrawal of wine and distilled spirits from customs bonded 
          warehouses.

                           Foreign-Trade Zones

252.30  Export status.

 Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone

252.35  General.
252.36  Application.
252.37  Action by regional director (compliance).
252.38  Action by district director of customs.

                     Evidence of Exportation and Use

252.40  Evidence of exportation: distilled spirits and wine.
252.41  Evidence of lading for use on vessles or aircraft: distilled 
          spirits and wine.
252.42  Evidence of deposit.
252.43  Evidence of exportation and lading for use on vessels and 
          aircraft: beer.

                          Retention of Records

252.45  Retention of records.

                          Penalties of Perjury

252.48  Execution under penalties of perjury.

                 Subpart D--Bands and Consents of Surety

252.51  General.
252.52  Corporate surety.
252.52a  Filing of powers of attorney.
252.52b  Execution of powers of attorney.
252.53  Deposit of securities in lieu of corporate surety.
252.54  Consents of surety.
252.55  Authority to approve bonds and consents of surety.
252.56  Disapproval of bonds or consents of surety.
252.57  Appeal to Director.
252.58  Operations or unit bond--distilled spirits.
252.59  Bond, Form 5120.36.
252.60  Brewer's bond, Form 5130.22.
252.61  Bond, Form 2734 (5100.25).
252.62  Bond, Form 2735 (5100.30).
252.63  Bond, Form 2736 (5100.12).
252.64  Bond, Form 2737 (5110.67).
252.65  Bond, Form 2738 (5110.68).
252.66  Strengthening bonds.
252.67  New or superseding bonds.

                          Termination of Bonds

252.70  Termination of bonds, Forms 2734 (5120.25) and 2736 (5100.12).
252.71  Termination of bonds, Forms 2735 (5100.30), 2737 (5110.67), and 
          2738 (5110.68).
252.72  Application of surety for relief from bond.
252.73  Relief of surety from bond.
252.74  Release of pledged securities.

                           Charges and Credits

252.80  Charges and credits on bonds.

 Subpart E--Withdrawal of Distilled Spirits Without Payment of Tax for 
 Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade 
       Zone, or Transportation to a Manufacturing Bonded Warehouse

252.91  General.
252.92  Application or notice, ATF Form 5100.11.
252.93  Carrier to be designated.
252.94  Containers.
252.95  Change of packages for exportation.
252.96  Approval of application.
252.97  [Reserved]
252.98  Inspection and regauge.
252.100  [Reserved]
252.101  Packages to be stamped.
252.102  Bottles to have closures affixed.
252.103  Export marks.

[[Page 6]]

252.104  Certificates of origin.
252.105  Report of inspection and tax liability.
252.106  Consignment, shipment, and delivery.
252.107  Disposition of forms.

                                 Losses

252.110  Losses.

                  Return of Spirits to Bonded Premises

252.115  General.
252.116  Notice of return of spirits withdrawn without payment of tax.
252.117  Responsibility for return of spirits.
252.118  Receipt of spirits.

 Subpart F--Withdrawal of Wine Without Payment of Tax for Exportation, 
 Use on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a 
 Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded 
                                Warehouse

252.121  General.
252.122  Application or notice, ATF Form 5100.11.
252.123  Export marks.
252.124  Consignment, shipment, and delivery.
252.125  Disposition of forms.
252.126  Proprietor's report.
252.127  Losses.

                  Return of Wines to Bonded Wine Cellar

252.130  General.
252.131  Application for return of wines withdrawn without payment of 
          tax.
252.132  Responsibility for return of wine.
252.133  Disposition of forms.

 Subpart G--Removal of Beer and Beer Concentrate Without Payment of Tax 
for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to 
                          a Foreign-Trade Zone

252.141  General.
252.142  Notice, Form 1689.
252.143  Containers.
252.144  Export marks.
252.145  Consignment, shipment and delivery.
252.146  Disposition of forms.
252.147  Return of beer or beer concentrate.
252.148  Brewer's report.
252.149  Losses.
252.150  Charges and credits on bond.

 Subpart H--Withdrawal of Specially Denatured Spirits, Free of Tax, for 
             Exportation or Transfer to a Foreign-Trade Zone

252.151  General.
252.152  Notice, ATF Form 5100.11.
252.153  Withdrawal procedure.
252.154  Export marks.
252.155  Consignment, shipment, and delivery.
252.156  Losses.

        Return of Specially Denatured Spirits to Bonded Premises

252.160  General.
252.161  Notice of return of specially denatured spirits.
252.162  Responsibility for return of specially denatured spirits.
252.163  Receipt of specially denatured spirits.

  Subpart I--Exportation of Distilled Spirits With Benefit of Drawback

252.171  General.

                      Filing of Notice and Removal

252.190  Notice, ATF Form 5110.30.
252.191  [Reserved]
252.192  Packages of distilled spirits to be gauged.
252.193  Export marks.
252.194-252.195  [Reserved]
252.195b  Claims on spirits tax determined on and after January 1, 1980.
252.196  Consignment, shipment, and delivery.
252.197  Return of spirits withdrawn for export with benefit of 
          drawback.
252.198  Notice of return.
252.199  Responsibility for return of spirits withdrawn for export with 
          benefit of drawback.

Subpart J [Reserved]

         Subpart K--Exportation of Wine With Benefit of Drawback

252.211  General.
252.212  Persons authorized.
252.213  [Reserved]
252.214  Notice and claim, Form 1582-A (5120.24).
252.215  Certificate of tax determination, Form 2605 (5120.20).
252.216  Export marks.
252.217  Consignment, shipment, and delivery.
252.218  Disposition of Forms 1582-A (5120.24).
252.219  Return of wine withdrawn for export with benefit of drawback.
252.220  Notice of return.
252.220a  Responsibility for return of wine withdrawn for export with 
          benefit of drawback.

         Subpart L--Exportation of Beer With Benefit of Drawback

252.221  General.
252.222  Claim, Form 1582-B (5130.6).

[[Page 7]]

252.223  Export marks.

                           Execution of Claims

252.225  Removals of beer by brewer.
252.226  Removals of beer by agent on behalf of brewer.
252.227  Removals of beer by persons other than the brewer or agent of 
          the brewer.

                   Consignment, Shipment, and Delivery

252.230  Consignment, shipment, and delivery.

               Subpart M--Shipment or Delivery for Export

                               Consignment

252.241  Shipment for export, or for use on vessels.
252.242  Shipment for use on aircraft.
252.243  Shipment to armed services.
252.244  Shipment to manufacturing bonded warehouse.
252.244a  Shipment to a customs bonded warehouse.
252.245  Shipment to foreign-trade zone.
252.246  Delivery for shipment.
252.247  Change in consignee.

                             Bills of Lading

252.250  Bills of lading required.
252.251  Railway express receipts.
252.252  Air express or freight bills of lading.
252.253  Certificate by export carrier.

                Subpart N--Proceedings at Ports of Export

252.261  Notice to district director of customs.
252.262  Delay in lading at port.
252.263  [Reserved]
252.264  Lading for exportation.
252.265  Evidence of fraud.
252.266  Release of detained merchandise.
252.267  Exportation from interior port.
252.268  Receipt for liquors for use on vessels or aircraft.
252.269  Certification by district director of customs.

                        Receipt by Armed Services

252.275  Receipt by armed services.

                       Lading for Use on Aircraft

252.280  Distilled spirits and wines.
252.281  Certificate of use for distilled spirits and wines.
252.282  Beer.

                Receipt in Manufacturing Bonded Warehouse

252.285  Receipt in manufacturing bonded warehouse.

                   Receipt in Customs Bonded Warehouse

252.286  Receipt in customs bonded warehouse.

                      Receipt in Foreign-Trade Zone

252.290  Receipt in foreign-trade zone.

                              Customs Gauge

252.291  Customs Form 6001.

                          Alternate Procedures

252.295  Exception for export of beer.

                            Subpart O--Losses

                            Distilled Spirits

252.301  Loss of distilled spirits in transit.
252.302  Notice to exporter.
252.303  Filing of claims.
252.304  Action on claim.

                       Specially Denatured Spirits

252.310  Loss of specially denatured spirits in transit.

                                  Wine

252.315  Loss of wine in transit.
252.316  Notice to exporter.
252.317  Filing of claims.
252.318  Action on claim.

                        Beer and Beer Concentrate

252.320  Loss of beer and beer concentrate in transit.
252.321  Tax assessed on loss not accounted for.

                       Subpart P--Action on Claims

252.331  Claims supported by bond, Form 2738 (5110.68).
252.332  Claim against bond.
252.333  Where no bond is filed.
252.334  Credit allowance.
252.335  Disallowance of claim.

    Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 
5007, 5008, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122, 5124, 
5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 U.S.C. 
203, 205; 44 U.S.C. 3504(h).

    Source: 25 FR 5734, June 23, 1960, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975.

    Editorial Note: Nomenclature changes to part 252 appear at 67 FR 
18087 through 18090, Apr. 15, 2002.



                            Subpart A--Scope



Sec. 252.1  General.

    The regulations in this part relate to exportation, lading for use 
on vessels

[[Page 8]]

and aircraft, and the transfer to a foreign-trade zone or a 
manufacturing bonded warehouse, class 6, of distilled spirits (including 
specially denatured spirits), beer, and wine, and in the case of 
distilled spirits and wine only, transfer to a customs bonded warehouse 
as provided for in 26 U.S.C. 5066 and 5362, whether without payment of 
tax, free of tax, or with benefit of drawback, and includes requirements 
with respect to removal, shipment, lading, deposit, evidence of 
exportation, losses, claims, and bonds.

[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981]



Sec. 252.2  Forms prescribed.

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

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

[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. 
ATF-477, 67 FR 18087, Apr. 15, 2002]



Sec. 252.3  Related regulations.

    Regulations relating to this part are listed below:

19 CFR Chapter I--Customs Regulations
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act
27 CFR Part 4--Labeling and Advertising of Wine
27 CFR Part 19--Distilled Spirits Plants
27 CFR Part 21--Formulas for Denatured Alcohol and Rum
27 CFR Part 24--Wine
27 CFR Part 25--Beer
27 CFR Part 30--Gauging Manual
27 CFR Part 194--Liquor Dealers
31 CFR Part 225--Acceptance of Bonds, Notes, or Other Obligations Issued 
or Guaranteed by the United States as Security in Lieu of Surety of 
Sureties on Penal Bonds

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; as amended by T.D. ATF-299, 55 
FR 25033, June 19, 1990]



Sec. 252.4  Delegations of the Director.

    Most of the regulatory authorities of the Director contained in this 
part 252 are delegated to appropriate ATF officers. These ATF officers 
are specified in ATF Order 1130.27, Delegation of the Director's 
Authorities in this part 252, Exportation of Liquors. ATF delegation 
orders, such as ATF Order 1130.27, are available to any interested 
person by mailing a request to the ATF Distribution Center, P.O. Box 
5950, Springfield, Virginia 22150-5950, or by accessing the ATF web site 
(http://www.atf.treas.gov/).

[T.D. ATF-477, 67 FR 18087, Apr. 15, 2002]



                         Subpart B--Definitions



Sec. 252.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Appropriate ATF Officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.27, Delegation of the Director's Authorities in 27 CFR Part 252, 
Exportation of Liquors.
    Beer. Beer, ale, porter, stout, and other similar fermented 
beverages (including sake or similar products) of any name or 
description containing one-half of 1 percent or more of alcohol by 
volume, brewed or produced from malt, wholly or in part, or from any 
substitute therefor.
    Bonded premises--distilled spirits plant. The premises of a 
distilled spirits

[[Page 9]]

plant, or part thereof, on which distilled spirits operations defined in 
26 U.S.C. 5002 are authorized to be conducted.
    Bonded wine cellar. Premises established under part 24 of this 
chapter for the production, blending, cellar treatment, storage, 
bottling, packaging, or repackaging of untaxpaid wine.
    Brewer. A proprietor of a brewery.
    Brewery. Premises established under part 25 of this chapter for the 
production of beer.
    Bulk container. any container having a capacity of more than 1 
gallon.
    CFR. The Code of Federal Regulations.
    Container. Any receptacle, vessel, or any form of package, bottle, 
can, tank, or pipeline used, or capable of being used, for holding, 
storing, transferring, or conveying liquors.
    Customs bonded warehouse. A customs bonded warehouse, class 2, 3, or 
8, established under the provisions of Customs Regulations (19 CFR 
chapter I).
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform the duties of an officer of the Customs Service.
    Delegate. Any officer, employee, or agency of the Department of the 
Treasury authorized by the Secretary of the Treasury directly, or 
indirectly by one or more redelegations of authority, to perform the 
function mentioned or described in the context.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, 
Department of the Treasury, Washington, DC.
    District director of customs. The district director of customs at a 
headquarters port of the district (except the district of New York, NY), 
the area directors of customs in the district of New York, NY, and the 
port director at a port not designated as a headquarters port.
    Distilled spirits or spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine, in any form (including all dilutions and 
mixtures thereof, from whatever source or by whatever process produced) 
but not denatured spirits.
    Distilled spirits plant. An establishment qualified under the 
provisions of part 19 of this chapter for the production, warehousing, 
or processing of spirits, or for authorized combinations of such 
operations.
    District director. A district director of internal revenue.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, claim, form, or other document or, where no form 
of declaration is prescribed, with the declaration:

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

    Exportation. A severance of goods from the mass of things belonging 
to the United States with the intention of uniting them to the mass of 
things belonging to some foreign country and shall include shipments to 
any possession of the United States. The export character of any 
shipment shall be determined by the intention with which it is made, and 
it assumes an export character only when destined for use in a foreign 
country or in a possession of the United States. For the purposes of 
this part, shipments to the Commonwealth of Puerto Rico, to the 
territories of the Virgin Islands, American Samoa and Guam, and to the 
Panama Canal Zone shall also be treated as exportations.
    Foreign-trade zone or zone. A foreign-trade zone established and 
operated pursuant to the Act of June 18, 1934, as amended.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Liquor. Distilled spirits, wines, and/or beer.
    Liter. A metric unit of capacity equal to 1,000 cubic centimeters of 
alcoholic beverage, and equivalent to 33.814 fluid ounces. A liter is 
divided into 1,000 milliliters. Milliliter or milliliters may be 
abbreviated as ``ml''.
    Manufacturing bonded warehouse. A manufacturing bonded warehouse, 
class

[[Page 10]]

six, established under the provisions of Customs Regulations (19 CFR, 
chapter I).
    Package. Any cask, keg, barrel, drum, or similar portable container.
    Person. An individual, a trust, an estate, a partnership, an 
association, a company, or a corporation.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A gallon at 60 degrees Fahrenheit which contains 50 
percent by volume of ethyl alcohol having a specific gravity of 0.7939 
at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as 
unity, or the alcoholic equivalent thereof.
    Proprietor. The person who operates the brewery, distilled spirits 
plant, bonded wine cellar, taxpaid wine bottling house, or manufacturing 
bonded warehouse, as the case may be, referred to in this part.
    Secretary. The Secretary of the Treasury or his delegate.
    Specially denatured spirits. Alcohol or rum, as defined in part 21 
of this chapter, denatured pursuant to the formulas authorized in part 
21 for specially denatured alcohol or rum.
    Tank truck. A tank-equipped semi-trailer, trailer, or truck.
    Tax. The distilled spirits tax, the beer tax, or the applicable wine 
tax, as the case may be, imposed by 26 U.S.C. chapter 51.
    U.S.C. The United States Code.
    Wine. All kinds and types of wine having not in excess of 24 percent 
of alcohol by volume.
    Zone operator. The person to which the privilege of establishing, 
operating, and maintaining a foreign-trade zone has been granted by the 
Foreign-Trade Zones Board created by the Act of June 18, 1934, as 
amended.

(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended 
(27 U.S.C. 205))

[T.D. ATF-48, 43 FR 13552, Mar. 31, 1978, as amended by T.D. ATF-51, 43 
FR 24243, June 2, 1978; 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 FR 
71720, Dec. 11, 1979; T.D. ATF-199, 50 FR 9201, Mar. 6, 1985; T.D. ATF-
224, 51 FR 7698, Mar. 5, 1986; T.D. ATF-477, 67 FR 18088, Apr. 15, 2002]



                   Subpart C--Miscellaneous Provisions

      Withdrawal or Lading for Use on Certain Vessels and Aircraft



Sec. 252.20  Alternate methods or procedures; and emergency variations from requirements.

    (a) Alternate methods or procedures--(1) Application. An exporter, 
after receiving approval from the appropriate ATF officer, may use an 
alternate method or procedure (including alternate construction or 
equipment) in lieu of a method or procedure prescribed by this part. An 
exporter wishing to use an alternate method or procedure may apply to 
the appropriate ATF officer. The exporter shall describe the proposed 
alternate method or procedure and shall set forth the reasons for its 
use.
    (2) Approval by appropriate ATF officer. The appropriate ATF officer 
may approve the use of an alternate method or procedure if:
    (i) The applicant shows good cause for its use;
    (ii) It is consistent with the purpose and effect of the procedure 
prescribed by this part, and provides equal security to the revenue;
    (iii) It is not contrary to law; and
    (iv) It will not cause an increase in cost to the Government and 
will not hinder the effective administration of this part.
    (3) Exceptions. The appropriate ATF officer will not authorize an 
alternate method or procedure relating to the giving of a bond or the 
payment of tax.
    (4) Conditions of approval. An exporter may not employ an alternate 
method or procedure until the appropriate ATF officer has approved its 
use. The exporter shall, during the terms of the authorization of an 
alternate method or procedure, comply with the terms of the approved 
application.
    (b) Emergency variations from requirements--(1) Application. When an 
emergency exists, an exporter may apply to the appropriate ATF officer 
for a variation from the requirements of this part relating to 
construction, equipment, and methods of operation.

[[Page 11]]

The exporter shall describe the proposed variation and set forth the 
reasons for using it.
    (2) Approval by appropriate ATF officer. The appropriate ATF officer 
may approve an emergency variation from requirements if:
    (i) An emergency exists;
    (ii) The variation from the requirements is necessary;
    (iii) It will afford the same security and protection to the revenue 
as intended by the specific regulations;
    (iv) It will not hinder the effective administration of this part; 
and
    (v) It is not contrary to law.
    (3) Conditions of approval. An exporter may not employ an emergency 
variation from the requirements until the appropriate ATF officer has 
approved its use. Approval of variations from requirements are 
conditioned upon compliance with the conditions and limitations set 
forth in the approval.
    (4) Automatic termination of approval. If the exporter fails to 
comply in good faith with the procedures, conditions or limitations set 
forth in the approval, authority for the variation from requirements is 
automatically terminated and the exporter is required to comply with 
prescribed requirements of regulations from which those variations were 
authorized.
    (c) Withdrawal of approval. If the appropriate ATF officer finds the 
revenue is jeopardized or the effective administration of this part is 
hindered by the approval, such ATF officer may withdraw approval for an 
alternate method or procedure or for an emergency variation from 
requirements, approved under paragraph (a) or (b) of this section.

(Act of August 16, 1954, Ch. 736, 68A Stat. 917 (26 U.S.C. 7805); sec. 
201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))

[T.D. ATF-199, 50 FR 9201, Mar. 6, 1985, as amended by T.D. ATF-477, 67 
FR 18088, Apr. 15, 2002]



Sec. 252.21  General.

    Liquors may be withdrawn without payment of tax for lading, and 
liquors on which the tax has been paid or determined may be laden with 
benefit of drawback of tax, subject to this part, for use on vessels and 
aircraft as follows:
    (a) Vessels or aircraft operated by the United States;
    (b) Vessels of the United States employed in the fisheries as 
provided in Sec. 252.22 or in the whaling business, or actually engaged 
in foreign trade or trade between the Atlantic and Pacific ports of the 
United States or between the United States and any of its possessions, 
or between Hawaii and any other part of the United States or between 
Alaska and any other part of the United States;
    (c) Aircraft registered in the United States and actually engaged in 
foreign trade or trade between the United States and any of its 
possessions, or between Hawaii and any other part of the United States 
or between Alaska and any other part of the United States;
    (d) Vessels of war of any foreign nation;
    (e) Foreign vessels employed in the fisheries as provided in 
Sec. 252.22 or in the whaling business, or actually engaged in foreign 
trade or trade between the United States and any of its possessions, or 
between Hawaii and any other part of the United States or between Alaska 
and any other part of the United States; where such trade by foreign 
vessels is permitted; or
    (f) Aircraft registered in any foreign country and actually engaged 
in foreign trade or trade between the United States and any of its 
possessions, or between Hawaii and any other part of the United States 
or between Alaska and any other part of the United States, where trade 
by foreign aircraft is permitted, and where the Secretary of the 
Treasury shall have been advised by the Secretary of Commerce that he 
has found such foreign country allows, or will allow, substantially 
reciprocal privileges in respect to aircraft registered in the United 
States.

(46 Stat. 690, as amended; 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[T.D. 6588, 27 FR 773, Jan. 26, 1962. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.22  Vessels employed in the fisheries.

    Liquors may be withdrawn or laden under the provisions of paragraphs 
(b) and (e) of Sec. 252.21 relating to vessels employed in the 
fisheries, only for use on

[[Page 12]]

vessels of the United States documented to engage in the fisheries and 
foreign fishing vessels of 5 net tons or over if the district director 
of customs is satisfied by reason of the quantity requested in the light 
of (a) whether the vessel is employed in substantially continuous 
fishing activities, and (b) the vessel's complement, that none of the 
liquors to be withdrawn or laden are intended to be removed from the 
vessel in, or otherwise returned to, the United States. Such withdrawal 
or lading shall be conditioned upon compliance with the applicable 
provisions of this part. Lading of such liquors for use on such vessels 
shall be subject to approval by the district director of customs of a 
special written application by the withdrawer or the vessel's master on 
customs Form 5125 (in duplicate) and a statement by the withdrawer in 
his application or notice on the required ATF Form 5100.11, 5110.30, 
1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may 
be, that the liquors are to be laden for use as supplies on a vessel 
employed in the fisheries. The original application on customs Form 
5125, after approval, shall be stamped with the serial number of the ATF 
Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 
(5130.12), as the case may be, and the date thereof, and shall be 
returned by the district director of customs to the withdrawer or 
vessel's master for use as prescribed below. Approval of each such 
application shall be subject to the condition that the original shall be 
presented thereafter by the withdrawer or the vessel's master to the 
district director of customs within 24 hours (excluding Saturday, 
Sunday, and holidays) after each subsequent arrival of the vessel at a 
customs port or station and that an accounting shall be made at the time 
of such presentation of the disposition of the liquors until the 
district director of customs is satisfied that they have been consumed 
on board, or landed under customs supervision, and takes up the 
authorization. The approval of customs Form 5125 shall be subject to the 
further condition that any such liquors remaining on board while the 
vessel is in port shall be safeguarded in the manner and to such extent 
as the director of the port or place of arrival shall deem necessary. 
When such liquors have been accounted for to the satisfaction of the 
district director of customs, he shall execute his certificate of lading 
and use on both copies of the ATF Form 5100.11, 5110.30, 1582-A 
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and 
forward the original of the form according to its instructions. In the 
event of a failure on the part of the withdrawer or the master of the 
vessel to comply with the conditions of this section or upon receipt of 
evidence that the liquors were not lawfully used as supplies on the 
vessel, the district director of customs shall advise the appropriate 
ATF officer of all the facts in the case for determination of any 
liability incurred. In the case of liquors withdrawn without payment of 
tax, assessment of tax liability found to have been incurred shall be 
made against the principal on the bond. In the case of taxpaid or tax 
determined liquors, the appropriate ATF officer shall determine as to 
whether to make demand upon the principal and the surety on the bond or 
to disallow the claim as the case may be.
    Note: As used in this section, the word ``withdrawer'' shall mean 
the person executing the application or notice, ATF Form 5100.11, 
5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the 
case may be.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.22, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 252.23  Reciprocating foreign countries.

    The appropriate ATF officer may approve applications relating to the 
withdrawal or lading of liquors for use on aircraft of those foreign 
countries which will allow, to aircraft registered in the United States 
and engaged in foreign trade, privileges substantially reciprocal to the 
privileges allowed herein to aircraft of a foreign country. Where 
application is made to withdraw or lade liquors for use on aircraft of

[[Page 13]]

other countries, which it is claimed reciprocate similar privileges to 
aircraft of the United States, the applicant must first establish the 
right of such withdrawal or lading. In appropriate cases, the applicant 
should request the Secretary of Commerce to find and advise the 
Secretary of the Treasury that such foreign country or countries allow, 
or will allow, substantially reciprocal privileges to aircraft of the 
United States.

(46 Stat. 690, as amended; 19 U.S.C. 1309)

                     Manufacturing Bonded Warehouses



Sec. 252.25  General.

    The proprietor of a duly constituted manufacturing bonded warehouse, 
established in accordance with law and the regulations in 19 CFR chapter 
I, may withdraw distilled spirits or wine from any distilled spirits 
plant or bonded wine cellar, as the case may be, without payment of tax, 
for use in the manufacture of products for export, or for shipment in 
bond to Puerto Rico, or for use by foreign governments, organizations, 
and individuals, as authorized by 26 U.S.C. 5066, 5214(a)(6) and 5362; 
and 19 U.S.C. 1311. The proprietor of the manufacturing bonded warehouse 
shall furnish bond in accordance with the provisions of Sec. 252.63 or 
Sec. 252.64.

(Sec. 311, Tariff Act of 1930, 46 Stat. 691, as amended (19 U.S.C. 
1311); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as 
amended (26 U.S.C. 5214, 5362); sec. 3, Pub. L. 91-659, 84 Stat. 1965, 
as amended (26 U.S.C. 5066))

[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981]

                        Customs Bonded Warehouses



Sec. 252.26  Entry of distilled spirits into customs bonded warehouses.

    (a) Distilled spirits withdrawn without payment of tax. (1) Bottled 
distilled spirits may, subject to this part, be withdrawn from bonded 
premises for transfer to customs bonded warehouses in which imported 
distilled spirits are permitted to be stored in bond for entry pending 
withdrawal as provided in Sec. 252.27. Withdrawals from bonded premises 
under the provisions of this paragraph shall be treated as withdrawals 
for exportation under the provisions of 26 U.S.C. 5214(a)(4).
    (2) Distilled spirits may, subject to this part, be withdrawn from 
bonded premises for transfer (for the purpose of storage pending 
exportation) to any customs bonded warehouse from which distilled 
spirits may be exported. These withdrawals shall be treated as 
withdrawals for exportation under the provisions of 26 U.S.C. 
5214(a)(9).
    (b) Bottled distilled spirits eligible for export with benefit of 
drawback. Bottled distilled spirits eligible for export with benefit of 
drawback may, subject to this part, be transferred to customs bonded 
warehouses in which imported distilled spirits are permitted to be 
stored, and entered pending withdrawal as provided in Sec. 252.28, as if 
such spirits were for exportation.
    (c) Time deemed exported. For the purpose of this part, distilled 
spirits entered into a customs bonded warehouse as provided in this 
section shall be deemed exported at the time so entered.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1381, 1382, (26 
U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 
U.S.C. 5066, 5370, 5371; 26 U.S.C. 7805))

[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-206, 50 FR 23956, June 7, 1985]



Sec. 252.27  Entry of wine into customs bonded warehouses.

    Upon filing of the application or notice prescribed by 
Sec. 252.122(a), wine may be withdrawn from a bonded wine cellar for 
transfer to any customs bonded warehouse for entry pending withdrawal as 
provided in Sec. 252.28. Such withdrawal from bonded wine cellars is 
governed by the provisions of subpart F of this part. Wine so 
transferred to customs bonded warehouses shall be entered, stored, and 
accounted for in such warehouses under the appropriate provisions of 19 
CFR chapter I.

(Sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981]



Sec. 252.28  Withdrawal of wine and distilled spirits from customs bonded warehouses.

    Wine and bottled distilled spirits entered into customs bonded 
warehouses as provided in Sec. 252.26 (a) or (b) and

[[Page 14]]

Sec. 252.27 may, under the appropriate provisions of 19 CFR chapter I, 
be withdrawn from such warehouses for consumption in the United States 
by and for the official or family use of foreign governments, 
organizations, and individuals who are entitled to withdraw imported 
wine and distilled spirits from a warehouse free of tax. Distilled 
spirits and wine entered into customs bonded warehouses under the 
provisions of Secs. 252.26(a)(2) and 252.27 may be withdrawn for 
exportation, subject to the provisions of 19 CFR chapter I. Distilled 
spirits and wine transferred to customs bonded warehouses shall be 
entered into, stored and accounted for in, and withdrawn from, such 
warehouses under the appropriate provisions of 19 CFR chapter I. Wine 
and bottled distilled spirits, originally transferred to customs bonded 
warehouses for the purpose of withdrawal by foreign embassies, 
legations, etc., as authorized by law, may be withdrawn from such 
warehouses for domestic use, in which event they shall be treated as 
American goods exported and returned.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); 
sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); sec. 
2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981]

                           Foreign-Trade Zones



Sec. 252.30  Export status.

    (a) Distilled spirits and wines manufactured, produced, bottled in 
bottles packed in containers, or packaged in casks or other bulk 
containers in the United States, and beer brewed or produced in the 
United States may be transferred to a foreign-trade zone for the sole 
purpose of exportation, or storage pending exportation. Liquors 
deposited in a foreign-trade zone under this part solely for such 
purposes are considered to be exported. Export status is not acquired 
until application on Form 214 for admission of the liquors into the zone 
has been approved by the district director of customs under the 
appropriate provision of 19 CFR chapter I, and the required 
certification of deposit has been made on the ATF form prescribed in 
this part.
    (b) The provisions of subpart H of this part do not apply to 
specially denatured spirits transferred to a foreign-trade zone for use 
in the manufacture of articles pursuant to the provisions of 19 U.S.C. 
81c(c). Transfer of domestic specially denatured spirits to a qualified 
user in a foreign-trade zone is made free of tax under the provisions of 
part 20 of this chapter. Such transfer does not place the domestic 
specially denatured spirits in an export status.

(48 Stat. 999, as amended (19 U.S.C. 81c))

[T.D. ATF-274, 53 FR 25157, July 5, 1988]

 Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone



Sec. 252.35  General.

    Liquors may not, under the law, be transferred to a foreign-trade 
zone for the purpose of destruction. However, liquors transported to and 
deposited in a foreign-trade zone for exportation or for storage pending 
exportation may be destroyed under the supervision of the district 
director of customs, where it is shown to the satisfaction of the 
appropriate ATF officer that the liquors, after deposit in a zone, have 
become unmerchantable or unfit for export.

(48 Stat. 999, as amended; 19 U.S.C. 81c)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.36  Application.

    Liquors deposited in a foreign-trade zone from the United States 
which have become unmerchantable or unfit for export may be destroyed. 
The exporter shall prepare a letter application, in duplicate, and 
submit it to the appropriate ATF officer. The application shall identify 
the name and address of the exporter and contain the following 
information:
    (a) The kind and quantity of the liquor, the serial numbers, if any, 
of the containers thereof, and identification of the zone in which the 
liquor is stored;
    (b) The name and address of the producer bottler or packager of the 
liquor, and the name, registry number, if any, and location of the 
plant, warehouse or other establishment from which such

[[Page 15]]

liquors were withdrawn for transportation to and deposit in the foreign-
trade zone;
    (c) The date, form, and serial number of the ATF Form 5100.11, 
5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the 
case may be; and, in the case of liquors on which drawback of internal 
revenue tax has been allowed, the ATF assigned claim number;
    (d) Whether the liquor has become unmerchantable or unfit for export 
after deposit in the zone, together with all the known facts relating 
thereto; and
    (e) Whether the unmerchantable or unfit liquor is covered by valid 
insurance in excess of the market value thereof, exclusive of tax. If 
the liquor is insured, the application shall show its market value, the 
amount and date of each and every policy of insurance, the name and 
location of the company by which each and every policy was issued, the 
name and address of the bona fide owner of the liquor, and to the best 
of the affiant's knowledge, whether any other person or party is 
indemnified against the loss of the liquor by reason of its spoilage or 
destruction.

Such application shall be signed by the exporter or his authorized agent 
and be executed under the penalties of perjury. The appropriate ATF 
officer may require any further evidence as is deemed necessary. The 
operator of the foreign-trade zone shall countersign the application or 
otherwise indicate thereon his knowledge of and concurrence in the 
application to destroy the liquor. The exporter shall file the 
application with the district director of customs in whose district the 
foreign-trade zone is located; at the same time the exporter shall 
likewise file Zone Form E in accordance with Customs Regulations (19 CFR 
chapter I). On receipt of the application the district director of 
customs shall determine the completeness thereof and shall report any 
facts relating to the condition of the liquor of which he may have 
knowledge. The original application shall be forwarded to the 
appropriate ATF officer and the district director of customs shall 
retain the copy for his files.

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.36, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 252.37  Action by appropriate ATF officer.

    The appropriate ATF officer shall carefully examine the application 
to see that all the required information has been furnished and shall 
cause an investigation to be made or require any additional evidence, 
including samples, to be submitted if necessary. If the appropriate ATF 
officer finds that the liquors were transported to and deposited in a 
foreign-trade zone in good faith for the purpose of exportation or 
storage pending exportation, and that the liquors, after deposit in the 
zone, have become unmerchantable or unfit for export, he may approve the 
application and authorize the destruction of the liquor described 
therein under the supervision of the district director of customs. On 
approval or disapproval of the application, the appropriate ATF officer 
shall advise the district director of customs of his action.

[T.D. ATF-51,43 FR 24244, June 2, 1978]



Sec. 252.38  Action by district director of customs.

    On receipt of the appropriate ATF officer's authorization for 
destruction of the liquor, or his disapproval of the application for 
destruction, the district director of customs shall act upon the 
exporter's application on Zone Form E and dispose of it in accordance 
with the applicable provisions of Customs Regulations (19 CFR chapter 
I). Where the appropriate ATF officer has authorized the destruction of 
the liquor, such destruction shall be accomplished under customs 
supervision.

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

[[Page 16]]

                     Evidence of Exportation and Use



Sec. 252.40  Evidence of exportation: distilled spirits and wine.

    The exportation of any shipment of distilled spirits or wine may be 
evidenced by:
    (a) A copy of the export bill of lading (Sec. 252.250); or
    (b) A copy of the railway express receipt (Sec. 252.251); or
    (c) A copy of the air express receipt (Sec. 252.252); or
    (d) A copy of the through bill of lading where exportation is to a 
contiguous foreign country (Sec. 252.250); or
    (e) A certificate by the export carrier, as provided for in 
Sec. 252.253.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]



Sec. 252.41  Evidence of lading for use on vessels or aircraft: distilled spirits and wine.

    The lading of distilled spirits or wine for use on vessels or 
aircraft may be evidenced by submission of a receipt procured under the 
provisions of Sec. 252.268.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 201, Pub. L. 85-859; 72 Stat. 1362, as amended, 1380, as 
amended (26 U.S.C. 5214, 5362))

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]



Sec. 252.42  Evidence of deposit.

    The deposit of distilled spirits in a customs bonded warehouse or 
distilled spirits and wines in a foreign-trade zone with benefit of 
drawback may be evidenced by a copy of the transportation bill of lading 
obtained under the provisions of Sec. 252.250.

(48 Stat. 999, as amended, 84 Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5066)

[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.43  Evidence of exportation and lading for use on vessels and aircraft: beer.

    (a) Exportation. The exportation of beer to a foreign country or 
possession will be fully evidenced by any of the following documents:
    (1) Customs certification of lading and clearance on Form 1582-B 
(5130.6) or Form 1689 (5130.12) under subpart M of this part; or
    (2) For shipment to the armed forces, certification by a military 
officer on Form 1582-B (5130.6) or Form 1689 (5130.12) under 
Sec. 252.275; or
    (3) A bill of lading (Sec. 252.250), a railway express receipt 
(Sec. 252.251), or an air express or air freight bill of lading 
(Sec. 252.252), when such bills of lading or receipt show exportation to 
a foreign country or possession; or
    (4) A certificate issued by an export carrier under Sec. 252.253 
attesting to exportation to a foreign country or possession; or
    (5) A landing certificate issued by an official of the country or 
possession where the beer has actually landed; or
    (6) Any other evidence of exportation approved by the appropriate 
ATF officer.
    (b) Use as supplies on vessels and aircraft. The lading of beer for 
use on vessels or aircraft will be fully evidenced by:
    (1) For fishing vessels only, customs certification of lading and 
use on Form 1582-B (5130.6) or Form 1689 (5130.12) under Sec. 252.23; or
    (2) Customs certification of lading on Form 1582-B (5130.6) or Form 
1689 (5130.12) under Secs. 252.264 or 252.282; or
    (3) Any other evidence of exportation approved by the appropriate 
ATF officer.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as 
amended (26 U.S.C. 5053, 5055))

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]

                          Retention of Records



Sec. 252.45  Retention of records.

    File copies of forms required by this part to be retained by any 
proprietor or claimant, and all records, documents, or copies of records 
and documents supporting such forms, shall be preserved by such 
proprietor or claimant for a period of not less than two years, and 
during such period shall be

[[Page 17]]

available, during business hours, for inspection and the taking of 
abstracts therefrom by appropriate ATF officers.

(Approved by the Office of Management and Budget under control number 
1512-0385)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1381, as amended, 
1390, as amended, 1395, as amended (26 U.S.C. 5114, 5367, 5415, 5555); 
sec. 807, Pub. L. 96-39, 93 Stat. 283 (26 U.S.C. 5207))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. ATF-172, 49 
FR 14943, Apr. 16, 1984]

                          Penalties of Perjury



Sec. 252.48  Execution under penalties of perjury.

    When a return, form, or other document called for under this part is 
required by this part or in the instructions on or with the return, 
form, or other document to be executed under penalties of perjury, it 
shall be so executed, as defined in subpart B of this part, and shall be 
signed by the proprietor, or other duly authorized person.

(68A Stat. 749 (26 U.S.C. 6065))



                 Subpart D--Bonds and Consents of Surety



Sec. 252.51  General.

    Every person required by this part to file a bond or consent of 
surety must prepare and execute it on the prescribed form and file it in 
accordance with its instructions and the procedures of this part. The 
procedures in parts 19, 24 or 25 of this chapter govern bonds covering 
distilled spirits plants, bonded wine cellars and breweries, 
respectively.

[T.D. ATF-477, 67 FR 18089, Apr. 15, 2002]



Sec. 252.52  Corporate surety.

    (a) Surety bonds required by this part may be given only with 
corporate sureties holding certificates of authority from, and subject 
to the limitations prescribed by, the Secretary as set forth in the 
current revision of Treasury Department Circular No. 570 (Companies 
Holding Certificates of Authority as Acceptable Sureties on Federal 
Bonds and as Acceptable Reinsuring Companies).
    (b) Treasury Department Circular No. 570 is published in the Federal 
Register annually as of the first workday of July. As they occur, 
interim revisions of the circular are published in the Federal Register. 
Copies may be obtained from the Audit Staff, Bureau of Government 
Financial Operations, Department of the Treasury, Washington, DC 20226.

(July 30, 1947, ch. 390, 61 Stat. 648, as amended (6 U.S.C. 6, 7))

[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981]



Sec. 252.52a  Filing of powers of attorney.

    Each bond, and each consent to changes in the terms of a bond, shall 
be accompanied by a power of attorney authorizing the agent or officer 
who executed the bond or consent to so act on behalf of the surety. The 
appropriate ATF officer who is authorized to approve the bond, may, when 
he deems it necessary, require additional evidence of the authority of 
the agent or officer to execute the bond or consent.

(61 Stat. 648; 6 U.S.C. 6, 7)

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975]



Sec. 252.52b  Execution of powers of attorney.

    The power of attorney shall be prepared on a form provided by the 
surety company and executed under the corporate seal of the company. If 
the power of attorney submitted is other than a manually signed 
original, it shall be accompanied by certification of its validity.

(61 Stat. 648; 6 U.S.C. 6, 7)

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975]



Sec. 252.53  Deposit of securities in lieu of corporate surety.

    In lieu of corporate surety, the principal may pledge and deposit, 
as surety for his bond, securities which are transferable and are 
guaranteed as to both interest and principal by the United States, in 
accordance with the provisions of 31 CFR part 225.

(61 Stat. 650; 6 U.S.C. 15)

[[Page 18]]



Sec. 252.54  Consents of surety.

    Consents of surety to changes in the terms of bonds shall be 
executed on Form 1533 by the principal and by the surety with the same 
formality and proof of authority as is required for the execution of 
bonds.



Sec. 252.55  Authority to approve bonds and consents of surety.

    Appropriate ATF officers are authorized to approve all bonds and 
consents of surety required by this part.



Sec. 252.56  Disapproval of bonds or consents of surety.

    The appropriate ATF officer may disapprove any bond prescribed by 
this part, or any consent of surety submitted in respect thereto, if the 
principal or any person owning, controlling, or actively participating 
in the management of the business of the principal shall have been 
previously convicted, in a court of competent jurisdiction, of:
    (a) Any fraudulent noncompliance with any provision of any law of 
the United States, if such provision related to internal revenue or 
customs taxation of spirits, wines, or beer, or if such offense shall 
have been compromised with the person on payment of penalties or 
otherwise; or
    (b) Any felony under a law of any State, Territory, or the District 
of Columbia, or the United States, prohibiting the manufacture, sale, 
importation, or transportation of spirits, wine, beer, or other 
intoxicating liquor.

(72 Stat. 1336, 1352, 1353, 1394; 26 U.S.C. 5062, 5175, 5177, 5551)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]



Sec. 252.57  Appeal to Director.

    Where a bond or consent of surety is disapproved by the appropriate 
ATF officer, the person giving the bond may appeal from such disapproval 
to the Director, who will hear such appeal. The decision of the Director 
shall be final.

(72 Stat. 1394; 26 U.S.C. 5551)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.58  Operations or unit bond--distilled spirits.

    (a) Spirits. Where spirits are withdrawn without payment of tax, as 
authorized in Sec. 252.91, from the bonded premises of a distilled 
spirits plant on application of the proprietor thereof, the operations 
or unit bond, given by the proprietor and approved under the provisions 
of part 19 of this chapter, shall cover such withdrawals.
    (b) Wine. Where, under the provisions of part 19 of this chapter, an 
operations or unit bond has been given and approved to cover the 
operations of a distilled spirits plant and an adjacent bonded wine 
cellar, such bond shall cover the withdrawal of wine without payment of 
tax, as authorized in Sec. 252.121, from such bonded wine cellar on 
application for such withdrawal by the proprietor.
    (c) Specially denatured spirits. Where specially denatured spirits 
are withdrawn free of tax, as authorized in Sec. 252.151, from the 
bonded premises of a distilled spirits plant on application of the 
proprietor thereof, the proprietor shall file a consent of surety 
extending the terms of the operations or unit bond, which consent shall 
be in the following form:

    The obligors agree to extend the terms of said bond to cover all 
liability that may be incurred on all specially denatured spirits 
withdrawn by the principal for exportation or transfer to a foreign-
trade zone, for which satisfactory evidence of exportation, or of 
deposit in a foreign-trade zone, as required by law and regulations, is 
not submitted to the appropriate ATF officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended 
(26 U.S.C. 5175, 5214); Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as 
amended (26 U.S.C. 5066); Sec. 805, Pub. L. 96-39, 93 Stat. 276 (26 
U.S.C. 5173))

[T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]



Sec. 252.59  Bond, Form 5120.36.

    Where the operations of a bonded wine cellar are covered by bond, 
Form 5120.36, as provided in part 24 of this chapter, such bond shall 
cover the withdrawal of wine without payment of tax, as authorized in 
Sec. 252.121, from

[[Page 19]]

such bonded wine cellar by the proprietor of the bonded wine cellar.

(72 Stat. 1379, 1380; 26 U.S.C. 5354, 5362, as amended by T.D. ATF-299, 
55 FR 25033, June 19, 1990]



Sec. 252.60  Brewer's bond, Form 5130.22.

    When beer or beer concentrate is removed from a brewery without 
payment of tax for any of the purposes authorized in Sec. 252.141, the 
brewer's bond, Form 5130.22, furnished under the provisions of part 25 
of this chapter will cover the removals.

(49 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 
Stat. 1334, as amended, 1388, as amended (26 U.S.C. 5053, 5401))

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]



Sec. 252.61  Bond, Form 2734 (5100.25).

    If a specific lot of distilled spirits or wine is to be withdrawn 
without payment of tax, as authorized in Sec. 252.91(a)(1), (2), (3), 
(5), or Sec. 252.121(a), (b), (c), or (d), by a person other than the 
proprietor of the bonded premises, a specific bond on ATF Form 2734 
(5100.25) shall be filed by the exporter, as provided in Sec. 252.51. 
The penal sum of the bond shall not be less than the tax prescribed by 
law on the quantity of spirits or wine to be withdrawn. However, the 
maximum penal sum of the bond shall not exceed $200,000 but in no case 
shall the penal sum be less than $1,000.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended, 
1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub. 
L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981]



Sec. 252.62  Bond, Form 2735 (5100.30).

    (a) Requirement for bond. If a person other than the proprietor of 
the bonded premises withdraws distilled spirits or wine without payment 
of tax, as authorized by Sec. 252.91(a)(1), (2), (3), (5), or 
Sec. 252.121(a), (b), (c), or (d), the exporter shall file a continuing 
bond, ATF Form 2735 (5100.30), as provided in Sec. 252.51.
    (b) Penal sum of bond. The penal sum of the bond shall be sufficient 
to cover the tax on the maximum quantity of distilled spirits and wine 
that may remain unaccounted for at any one time. However, the maximum 
penal sum of the bond shall not exceed $200,000, but in no case shall 
the penal sum be less than $1,000. Distilled spirits and wine withdrawn 
for exportation, use on vessels or aircraft, transfer to a customs 
bonded warehouse, or transfer to and deposit in a foreign-trade zone, 
shall remain unaccounted for until the evidence of exportation, use, 
deposit, transfer, or loss in transit has been filed with the 
appropriate ATF officer.
    (c) Apportioning bonds. If the bond, Form 2735 (5100.30), is in less 
than the maximum penal sum, the principal shall apportion the bond, in 
accordance with the requirements on the bond form. The exporter may 
reapportion the bond coverage, if changing conditions make this 
necessary, by filing a consent of surety, ATF Form 1533 (5000.18), in 
accordance with its instructions.
    (d) Withdrawal of wine for transfer to a customs bonded warehouse; 
consent of surety. An exporter with a bond on Form 2735 (5100.30) 
executed before April 1, 1981, shall obtain a consent of surety on Form 
1533 (5000.18) before withdrawing wine without payment of tax from a 
bonded wine cellar for transfer to a customs bonded warehouse. The 
consent shall be executed in accordance with Sec. 252.54 and filed in 
accordance with instructions on the form. Exporters with bonds executed 
on or after April 1, 1981, do not need this consent of surety, because 
such bonds automatically apply to withdrawals for transfer to customs 
bonded warehouses.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended, 
1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub. 
L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1991, as amended by T.D. ATF-413, 64 
FR 46845, Aug. 27, 1999]



Sec. 252.63  Bond, Form 2736 (5100.12).

    Where the proprietor of a manufacturing bonded warehouse desires to 
withdraw a specific lot of distilled spirits or wines without payment of 
tax, as authorized in Sec. 252.25, he shall file, as provided in 
Sec. 252.51, a specific bond, on Form 2736 (5100.12), to cover the 
transportation of the distilled spirits or wines from the bonded 
premises from

[[Page 20]]

which withdrawn to the manufacturing bonded warehouse. The penal sum of 
such bond shall be not less than the tax prescribed by law on the 
quantity of distilled spirits or wines to be withdrawn: Provided, That 
the maximum penal sum of such bond shall not exceed $200,000, but in no 
case shall the penal sum be less than $1,000.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended 
(26 U.S.C. 5175, 5362))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]



Sec. 252.64  Bond, Form 2737.

    (a) General. Where the proprietor of a manufacturing bonded 
warehouse desires to withdraw distilled spirits and wines from time to 
time without payment of tax, as authorized in Sec. 252.25, he shall 
file, as provided in Sec. 252.51, a continuing bond on Form 2737 
(5110.67). The bond shall be executed in a penal sum sufficient to cover 
the tax at the rates prescribed by law on the maximum quantity of 
distilled spirits and wines which may remain unaccounted for at any one 
time: Provided, That the maximum penal sum of such bond shall not exceed 
$200,000, but in no case shall the penal sum be less than $1,000. 
Distilled spirits and wines withdrawn for transfer to a manufacturing 
bonded warehouse shall remain unaccounted for until the evidence of 
deposit in such warehouse, as required by this part, has been filed. The 
proprietor shall, at the time of executing Form 2737 (5110.67), 
designate the premises from which the withdrawals are to be made, 
provided that, as to any one bond on Form 2737 (5110.67), such premises 
shall be located in the same internal revenue region.
    (b) Apportioning bonds. If the bond, Form 2737 (5110.67) is in less 
than the maximum penal sum, the principal shall apportion the bond, in 
accordance with the requirements on the bond form. The principal may 
reapportion the bond coverage, if changing conditions make this 
necessary, by filing a consent of surety, Form 1533, in accordance with 
its instructions.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended 
(26 U.S.C. 5175, 5362))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]



Sec. 252.65  Bond, Form 2738 (5110.68).

    Whenever, under the provisions of this part, the claimant desires 
drawback of tax on distilled spirits or wines to be exported, laden for 
use on vessels or aircraft, or transferred to and deposited in a 
foreign-trade zone, or, in the case of distilled spirits, transferred to 
a customs bonded warehouse, as authorized in Secs. 252.171 and 252.211, 
prior to the receipt of the certified copy of ATF Form 5110.30, or 1582-
A (5120.24), as the case may be, as prescribed by this part, he shall 
file bond on Form 2738 (5110.68) as provided in Sec. 252.51. The penal 
sum of the bond shall be sufficient to cover the amount of drawback 
which will at any time constitute a charge against the bond:

Provided, That the maximum penal sum shall not exceed $200,000, but in 
no case shall the penal sum be less than $1,000: Provided further, That 
where the claimant desires to remove distilled spirits to a customs 
bonded warehouse as provided in Sec. 252.171(d) and the terms of his 
bond on Form 2738 (5110.68), then in force, do not cover such removals, 
he shall either file a consent of surety on Form 1533 to extend the 
terms of such bond to cover such removals or file a new bond on Form 
2738 (5110.68).

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as 
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)

[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. 
ATF-198, 50 FR 8559, Mar. 1, 1985]



Sec. 252.66  Strengthening bonds.

    In all cases where the penal sum of any bond becomes insufficient, 
the principal shall either give a strengthening bond with the same 
surety to attain a sufficient penal sum, or give a new bond to cover the 
entire liability.

[[Page 21]]

Strengthening bonds will not be approved where any notation is made 
thereon which is intended, or which may be construed, as a release of 
any former bond, or as limiting the amount of any bond to less than its 
full penal sum. Strengthening bonds shall show the current date of 
execution and the effective date.

(72 Stat. 1352, 1394; 26 U.S.C. 5175, 5551)



Sec. 252.67  New or superseding bonds.

    New bonds shall be required in case of insolvency or removal of any 
surety, and may, at the discretion of the appropriate ATF officer, be 
required in any other contingency affecting the validity or impairing 
the efficiency of such bond. Executors, administrators, assignees, 
receivers, trustees, or other persons acting in a fiduciary capacity, 
continuing or liquidating the business of the principal, shall execute 
and file a new bond or obtain the consent of the surety or sureties on 
the existing bond or bonds. Where, under the provisions of Sec. 252.72, 
the surety on any bond given under this subpart has filed an application 
to be relieved of liability under said bond and the principal desires or 
intends to continue the business or operations to which such bond 
relates, he shall file a valid superseding bond to be effective on or 
before the date specified in the surety's notice. If the principal does 
not file a new or superseding bond when required, he shall discontinue 
the operations intended to be covered by such bond forthwith. New or 
superseding bonds shall show the current date of execution and the 
effective date.

(72 Stat. 1336, 1362; 26 U.S.C. 5062, 5214)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]

                          Termination of Bonds



Sec. 252.70  Termination of bonds, Forms 2734 (5120.25) and 2736 (5100.12).

    Bonds, Forms 2734 (5120.25) and 2736 (5100.12), covering a specific 
lot of distilled spirits or wines withdrawn without payment of tax under 
this part, will be canceled by the appropriate ATF officer on receipt by 
him of ATF Form 5100.11 properly executed by the appropriate customs 
official or armed services officer, as required by this part, evidencing 
that the distilled spirits or wines have been duly exported, laden for 
use on vessels or aircraft, deposited in a foreign-trade zone, or 
deposited in a manufacturing bonded warehouse, as the case may be, or of 
evidence satisfactory to him that the distilled spirits or wines have 
been otherwise lawfully disposed of or accounted for: Provided, That all 
liability under the bond to be canceled has been terminated.

(72 Stat. 1352; 26 U.S.C. 5175)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]



Sec. 252.71  Termination of bonds, Forms 2735 (5100.30), 2737 (5110.67), and 2738 (5110.68).

    Continuing bonds, Forms 2735 (5100.30) and 2737 (5110.67), covering 
distilled spirits and/or wines withdrawn from time to time without 
payment of tax under this part and Form 2738 (5110.68) covering 
allowance of claims for drawback on distilled spirits and/or wines 
removed as authorized in Secs. 252.171 and 252.211, may be terminated as 
to liability for future withdrawals or claims (a) pursuant to 
application of surety as provided in Sec. 252.72, (b) on approval of a 
superseding bond, or (c) on written notification to the appropriate ATF 
officer by the principal of his discontinuance of withdrawals or claims, 
as the case may be, under the bond. When no further withdrawals are to 
be made under a bond on Form 2735 (5100.30) or 2737 (5110.67), or no 
further claims for drawback are to be filed under bond Form 2738 
(5110.68), the bond shall be canceled by the appropriate ATF officer in 
the manner and subject to the conditions provided in Sec. 252.70.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended, 
1353, as amended (26 U.S.C. 5062, 5175, 5176))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 
1975,and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. ATF-
198, 50 FR 8559, Mar. 1, 1985]

[[Page 22]]



Sec. 252.72  Application of surety for relief from bond.

    A surety on any bond given on Forms 2735 (5100.30), 2737 (5110.67), 
or 2738 (5110.68), may at any time in writing notify the principal and 
the appropriate ATF officer that he desires, after a date named, to be 
relieved of liability under said bond. Such date shall be not less than 
90 days after the date the notice is received by the appropriate ATF 
officer. The surety shall also file with the appropriate ATF officer an 
acknowledgment or other proof of service on the principal. If such 
notice is not thereafter in writing withdrawn, the rights of the 
principal as supported by said bond shall be terminated on the date 
named in the notice, and the surety shall be relieved from liability to 
the extent set forth in Sec. 252.73(b).

(68A Stat. 749, as amended (26 U.S.C. 6065); Sec. 201. Pub. L. 85-859, 
72 Stat. 1336, as amended, 1352, as amended (26 U.S.C. 5062, 5175))

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]



Sec. 252.73  Relief of surety from bond.

    (a) Bonds, Forms 2734 (5120.25) and 2736 (5100.12). The surety on a 
bond given on Form 2734 (5120.25) or Form 2736 (5100.12) shall be 
relieved from his liability under the bond when the bond has been 
canceled as provided for in Sec. 252.70.
    (b) Bonds, Forms 2735 (5100.30), 2737 (5110.67), and 2738 (5110.68). 
Where the surety on a bond given on Form 2735 (5100.30), Form 2737 
(5110.67), or on Form 2738 (5110.68) has filed application for relief 
from liability, as provided in Sec. 252.72, the surety shall be relieved 
from liability for withdrawals or claims, as the case may be, made 
wholly subsequent to the date specified in the notice, or on the 
effective date of a superseding bond, if one is given. Notwithstanding 
such relief, the liability of the surety shall continue until the 
spirits and/or wines withdrawn without payment of tax or included in a 
claim for drawback of tax allowed under the bond have been properly 
accounted for.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended, 
1353, as amended (26 U.S.C. 5062, 5175, 5176))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]



Sec. 252.74  Release of pledged securities.

    Securities of the United States, pledged and deposited as provided 
in Sec. 252.53, shall be released only in accordance with the provisions 
of 31 CFR part 225. Such securities will not be released by the 
appropriate ATF officer until liability under the bond for which they 
were pledged has been terminated. When the appropriate ATF officer is 
satisfied that they may be released, he shall fix the date or dates on 
which a part or all of such securities may be released. At any time 
prior to the release of such securities, the appropriate ATF officer may 
extend the date of release for such additional length of time as he 
deems necessary.

(61 Stat. 650; 6 U.S.C. 15)

                           Charges and Credits



Sec. 252.80  Charges and credits on bonds.

    The withdrawal of liquors without payment of tax or of specially 
denatured spirits free of tax, under the provisions of this part shall 
constitute a charge against the bond under which the withdrawal is made 
of (a) the tax on the liquors withdrawn or (b) of an amount equal to the 
tax on specially denatured spirits withdrawn that will be due in the 
event of failure to account for the specially denatured spirits as 
provided in this part. The tax on liquors so withdrawn, or an amount 
equal to the tax on specially denatured spirits so withdrawn that would 
be due as set forth above, shall, on the required accounting for such 
liquors or specially denatured spirits, constitute a credit to the bond 
of such tax or amount equal to the tax, as the case may be. Provisions 
regarding charges and credits on drawback bonds are contained in subpart 
P of this part.

[[Page 23]]



 Subpart E--Withdrawal of Distilled Spirits Without Payment of Tax for 
 Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade 
       Zone, or Transportation to a Manufacturing Bonded Warehouse



Sec. 252.91  General.

    (a) Distilled spirits on which the internal revenue tax has not been 
paid or determined may, subject to this part, be withdrawn from the 
bonded premises of a distilled spirits plant without payment of tax for:
    (1) Exportation;
    (2) Use on the vessels or aircraft described in Sec. 252.21;
    (3) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation;
    (4) Transportation to and deposit in a manufacturing bonded 
warehouse; or
    (5) Transfer to and deposit in a customs bonded warehouse as 
provided for in Sec. 252.26.
    (b) All withdrawals shall be made under the applicable bond 
prescribed in subpart D of this part.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 
5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[T.D. ATF-51, 43 FR 24244, June 2, 1978, as amended by T.D. ATF-62, 44 
FR 71722, Dec. 11, 1979]



Sec. 252.92  Application or notice, ATF Form 5100.11.

    (a) Export, use on vessels and aircraft, and transfer to a foreign-
trade zone or a customs bonded warehouse. Application for or notice of 
the withdrawal of distilled spirits without payment of tax for 
exportation from the United States, or for use on vessels and aircraft, 
or for transfer to a customs bonded warehouse or a foreign-trade zone, 
shall be made by the exporter on ATF Form 5100.11. If the exporter is 
not the proprietor of the bonded premises of the distilled spirits plant 
from which the spirits are to be withdrawn, the exporter shall prepare 
ATF Form 5100.11 as an application, in accordance with the instructions 
on the form, and shall forward all copies of the form in accordance with 
instructions for the form. If the exporter is the proprietor of the 
bonded premises of the distilled spirits plant from which the spirits 
are withdrawn, the exporter shall prepare ATF Form 5100.11 as a notice 
in accordance with the instructions on the form.
    (b) Manufacturing bonded warehouse. Application for the withdrawal 
of distilled spirits without payment of tax for transportation to and 
deposit in a manufacturing bonded warehouse shall be made by the 
proprietor of such warehouse on ATF Form 5100.11, in accordance with the 
instructions on the form.

(Approved by the Office of Management and Budget under control number 
152-0190)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); 
Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))

[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985]



Sec. 252.93  Carrier to be designated.

    The name of the carrier or carriers to be used in transporting the 
distilled spirits from the bonded premises of the distilled spirits 
plant to the port of export, or to the customs bonded warehouse, or to 
the manufacturing bonded warehouse, or to the foreign-trade zone, as the 
case may be, shall be shown in the application. If the spirits are 
shipped on a through bill of lading and all carriers handling the 
spirits while in transit are not known, the name of the carrier to whom 
the distilled spirits are to be delivered at the shipping premises shall 
be shown.

(72 Stat. 1362, 84 Stat. 1965; 26 U.S.C. 5214, 5066)

[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]



Sec. 252.94  Containers.

    Distilled spirits authorized to be withdrawn without payment of tax 
from the bonded premises of a distilled spirits plant under the 
provisions of this subpart may be withdrawn from such establishment in 
such containers as may be authorized in part 19 of this chapter. Except 
as otherwise provided

[[Page 24]]

in this part, the gauging, packing, bottling, casing, marking, closing 
and reporting of distilled spirits prior to withdrawal shall be in 
accordance with the provisions of part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended, 
1374, as amended (26 U.S.C. 5205, 5206, 5301))

[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; as amended by T.D. ATF-206, 50 
FR 23956, June 7, 1985]



Sec. 252.95  Change of packages for exportation.

    Whenever the exporter desires to transfer distilled spirits from 
packages filled in internal revenue bond to such other suitable packages 
as may be desired for exportation, such change of packages shall be made 
under the procedures of part 19 of this chapter, prior to the 
preparation of ATF Form 5100.11 covering the removal of the distilled 
spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended, 
1374, as amended (26 U.S.C. 5205, 5206, 5301))

[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]



Sec. 252.96  Approval of application.

    When filed as an application, and ATF Form 5100.11 has been properly 
executed, and the required bond has been filed in a sufficient amount, 
the appropriate ATF officer shall approve the application on all copies 
of the form and send them to the proprietor of the bonded premises from 
which the spirits will be withdrawn.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979, as amended by T.D. ATF-198, 50 
FR 8559, Mar. 1, 1985]



Sec. 252.97  [Reserved]



Sec. 252.98  Inspection and regauge.

    The proprietor shall inspect all containers to be withdrawn pursuant 
to ATF Form 5100.11 and shall regauge all packages, except those which 
are to be withdrawn on the filling or production gauge as authorized in 
27 CFR part 19. If the withdrawal is to be made subject to regauge, the 
proprietor shall prepare a package gauge record as provided in 27 CFR 
part 19, enter the total proof gallons regauged on ATF Form 5100.11, and 
attach a copy of the package gauge record to each copy of ATF Form 
5100.11. If a proprietor wishes to reduce the proof of spirits contained 
in packages to be withdrawn pursuant to ATF Form 5100.11, he shall make 
such proof reduction incident to regauge of the packages.

(Approved by the Office of Management and Budget under control number 
1412-0190 and 1512-0250)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985]



Sec. 252.100  [Reserved]



Sec. 252.101  Packages to be stamped.

    Each package and authorized bulk conveyance of spirits (including 
tank cars and tank trucks but not pipelines) withdrawn without payment 
of tax under the provisions of this subpart shall be marked with the 
word ``EXPORT'' in accordance with the provisions of 27 CFR part 19 
prior to its removal from the bonded premises.

(Approved by the Office of Management and Budget under control number 
1512-0189)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5205))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985; as amended by T.D. ATF-206, 50 
FR 23956, June 7, 1985]]



Sec. 252.102  Bottles to have closures affixed.

    Every bottle containing distilled spirits to be withdrawn under the 
provisions of this subpart shall have a closure or other device affixed 
in accordance with the provisions of part 19 of this chapter.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23956, June 7, 1985]



Sec. 252.103  Export marks.

    (a) General. In addition to the marks and brands required to be 
placed on packages and cases of distilled spirits at the time they are 
filled under the provisions of part 19 of this chapter, the proprietor 
shall mark the word ``Export'' on the Government side of

[[Page 25]]

each case or Government head of each container before removal from the 
bonded premises for any exportation authorized under this subpart.
    (b) Exception. When containers are being removed to a contiguous 
manufacturing bonded warehouse, the proprietor need not place the word 
``Export'' on the containers if the appropriate ATF officer finds the 
omission will not jeopardize the revenue.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 
5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981]



Sec. 252.104  Certificates of origin.

    The entry of distilled spirits at ports in certain foreign countries 
is permitted only upon the filing by the importer of an official 
certificate showing the origin and age of such spirits. An appropriate 
ATF officer may, on request of the applicant, furnish a certificate 
showing the origin and age of the spirits described on ATF Forms 5100.11 
or 5110.30. Such officer may require supporting documentation to be 
provided by the applicant. Certificates of origin and age shall be 
furnished on Form 2177 (5110.58). Form 2177 (5110.58) may also be issued 
for distilled spirits removed to a foreign-trade zone, in which case the 
number and location of the foreign-trade zone shall be shown on the form 
in lieu of the name of the foreign country.

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]



Sec. 252.105  Report of inspection and tax liability.

    When the spirits are ready for shipment, the proprietor shall 
execute his report of inspection and tax liability on all copies of ATF 
Form 5100.11.

(72 Stat. 1362; 26 U.S.C. 5214)

[T.D. ATF-46, 42 FR 44773, Sept. 6, 1977, as amended by T.D. ATF-62, 44 
FR 71723, Dec. 11, 1979]



Sec. 252.106  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of distilled spirits 
withdrawn without payment of tax under this subpart shall be made under 
the provisions of subpart M.

(72 Stat. 1362; 26 U.S.C. 5214)



Sec. 252.107  Disposition of forms.

    ATF Form 5100.11 and any accompanying package gauge record shall be 
distributed by the proprietor in accordance with the instruction on ATF 
Form 5100.11.

(Approved by the Office of Management and Budget under control number 
1512-0250)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]

                                 Losses



Sec. 252.110  Losses.

    Where there has been a loss of distilled spirits while in transit 
from the bonded premises of a distilled spirits plant to a port of 
export, a customs bonded warehouse, a manufacturing bonded warehouse, a 
vessel or aircraft, or a foreign-trade zone, the provisions of subpart O 
of this part, with respect to losses of spirits after withdrawal without 
payment of tax and to claims for remission of the tax thereon, shall be 
applicable.

(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)

[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]

                  Return of Spirits to Bonded Premises



Sec. 252.115  General.

    Spirits which have been lawfully withdrawn without payment of tax 
under the provisions of this subpart for exportation, or for deposit in 
a foreign-trade zone, a manufacturing bonded warehouse, or a customs 
bonded warehouse, or for use on vessels and aircraft may, subject to the 
requirements of Sec. 252.116, be returned:
    (a) To the bonded premises of a distilled spirits plant for 
redistillation; or
    (b) To the bonded premises from which withdrawn, pending subsequent 
removal for lawful purposes. However, such spirits may only be returned 
before they are exported, deposited in a foreign-trade zone, a 
manufacturing

[[Page 26]]

bonded warehouse, or a customs bonded warehouse, or laden as supplies 
upon or used on vessels or aircraft, as the case may be.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365 as amended 
(26 U.S.C. 5214, 5223); Sec. 3, Pub. L. 91-659, 84 Stat. 1365, as 
amended (26 U.S.C. 5066))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]



Sec. 252.116  Notice of return of spirits withdrawn without payment of tax.

    If a proprietor of a distilled spirits plant desires to return 
spirits to his plant as provided in Sec. 252.115, he shall file a notice 
with the appropriate ATF officer. A copy of the notice shall be prepared 
for submission to the customs official, as required by Sec. 252.117. The 
notice shall be executed under the penalties of perjury and shall show:
    (a) Name, address, and plant number of the distilled spirits plant 
to which the spirits are to be returned.
    (b) Name, address, and plant number of the distilled spirits plant 
which packaged or bottled the spirits.
    (c) Name, address, and plant number of the distilled spirits plant 
from which the spirits were withdrawn.
    (d) Name and address of the principal on the bond under which the 
spirits were withdrawn.
    (e) Serial number of the ATF Form 5100.11 and the date withdrawn.
    (f) Present location of spirits to be returned.
    (g) Kind of spirits to be returned.
    (h) Number, kind, and serial numbers of the containers to be 
returned. In case of bottled spirits, the number and size of the bottles 
in each case.
    (i) Total quantity in proof gallons of spirits to be returned.
    (j) Reason for return of spirits.
    (k) Disposition to be made of returned spirits, i.e., redistillation 
or return to bonded storage.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]



Sec. 252.117  Responsibility for return of spirits.

    The principal on the bond under which the spirits were withdrawn 
without payment of tax shall be responsible for arranging the return of 
the spirits to the distilled spirits plant receiving them. The principal 
or his agent shall submit a copy of the notice required by Sec. 252.116 
to the appropriate customs official. If the spirits are returned before 
the ATF Form 5100.11 has been filed with the customs official, the 
principal shall submit the form with the notice. The customs officer 
shall, if the spirits are eligible for return under Sec. 252.115, accept 
the notice as authority for the return of the spirits to the distilled 
spirits plant identified in the notice. The customs officer shall retain 
the notice and shall mark each copy of ATF Form 5100.11 ``Canceled'', 
note the date thereon, return both copies to the principal, and, if the 
spirits are in customs custody, release them for return. The principal 
shall retain one copy of the canceled ATF Form 5100.11 and file one copy 
with the appropriate ATF officer identified on the form.

(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]



Sec. 252.118  Receipt of spirits.

    The receipt, gauge, and disposition of the distilled spirits at the 
distilled spirits plant shall be in accordance with the applicable 
provisions of subpart U of part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]



 Subpart F--Withdrawal of Wine Without Payment of Tax for Exportation, 
 Use on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a 
 Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded 
                                Warehouse



Sec. 252.121  General.

    Wine may, subject to this part, be withdrawn from a bonded wine 
cellar, without payment of tax, for:
    (a) Exportation;
    (b) Use on the vessels and aircraft described in Sec. 252.21;

[[Page 27]]

    (c) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation;
    (d) Transfer to and deposit in a customs bonded warehouse as 
provided in Sec. 252.27; or
    (e) Transportation to and deposit in a manufacturing bonded 
warehouse.

All such withdrawals shall be made under the applicable bond prescribed 
in subpart D.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1380; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5362, 7805; (sec. 201, Pub. L. 85-859. 72 
Stat. 1381, 1382 (26 U.S.C. 5370, 5371)))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. ATF-88, 46 
FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982]



Sec. 252.122  Application or notice, ATF Form 5100.11.

    (a) Export, use on vessels and aircraft, transfer to a customs 
bonded warehouse, and transfer to a foreign-trade zone. Where the 
exporter is not the proprietor of the bonded wine cellar from which the 
wine is to be withdrawn, the exporter must make an application on ATF 
Form 5100.11 for approval of the withdrawal. Where the exporter is the 
proprietor of the bonded wine cellar from which the wine is to be 
withdrawn, the exporter must, at the time of withdrawal of the wine, 
prepare a notice of the withdrawal and shipment on ATF Form 5100.11. ATF 
approval is not required if the exporter is the proprietor of the bonded 
wine cellar from which the wine is to be withdrawn.
    (b) Manufacturing bonded warehouse. The proprietor of the 
manufacturing bonded warehouse must make an application on ATF Form 
5100.11 to withdraw wine without payment of tax for transportation to 
and deposit in such warehouse before withdrawal of the wine.
    (c) Action by appropriate ATF officer. Where, under the provisions 
of paragraphs (a) and (b) of this section, an ATF Form 5100.11 is 
submitted to the appropriate ATF officer for approval, the appropriate 
ATF officer shall, if satisfied that the application is in order and 
that the applicant has on file a good and sufficient bond, approve the 
application and forward it to the proprietor of the premises from which 
the wines are to be withdrawn.
    (d) Restriction on shipment. Where, under the provisions of 
paragraphs (a) and (b) of this section, prior approval of ATF Form 
5100.11 by the appropriate ATF officer is required, the proprietor of 
the bonded wine cellar may not ship the wine until the approved ATF 
Forms 5100.11 have been received by him. In such cases, the proprietor 
of the bonded wine cellar shall, on removal of the wines, execute his 
certificate of removal on ATF Form 5100.11.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.122, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 252.123  Export marks.

    (a) General. In addition to the marks and brands required to be 
placed on packages or cases of wine at the time they are filled under 
the provisions of part 24 of this chapter, the proprietor shall mark the 
word ``Export'' on the Government side of each case or Government head 
of each container before removal from the bonded premises for any 
exportation authorized under this subpart, including withdrawals under 
26 U.S.C. 5362(c)(4).
    (b) Exception. When containers are being removed to a contiguous 
manufacturing bonded warehouse, the proprietor need not place the word 
``Export'' on the containers if the appropriate ATF officer finds the 
omission will not jeopardize the revenue.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 
5362, 7805))

[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981, as amended by T.D. ATF-88, 46 
FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982; T.D. ATF-299, 55 FR 
25033, June 19, 1990]



Sec. 252.124  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of wines withdrawn without 
payment of tax under this subpart shall be

[[Page 28]]

made under the provisions of subpart M of this part.

(72 Stat. 1380; 26 U.S.C. 5362)



Sec. 252.125  Disposition of forms.

    On removal of the wines from the premises of the bonded wine cellar, 
the proprietor shall forward one copy of ATF Form 5100.11 to the 
appropriate ATF officer, retain one copy for his files, and deliver the 
original and remaining copy to the officer to whom the shipment is 
consigned, or in whose care it is shipped, as required by subpart M. 
Where the shipment is for delivery for use on aircraft, the copy marked 
``Consignee's Copy'', provided for in Sec. 252.122, shall be forwarded 
to the airline company at the airport.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



Sec. 252.126  Proprietor's report.

    The records of the proprietor of the bonded wine cellar shall 
reflect the quantity of wine removed without payment of tax under this 
subpart, and he shall report the quantity of wine so removed on ATF F 
5120.17.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-299, 55 FR 25033, June 19, 1990]



Sec. 252.127  Losses.

    Where there has been a loss of wine while in transit from a bonded 
wine cellar to a port of export, a foreign-trade zone, a vessel or 
aircraft, a customs bonded warehouse, or a manufacturing bonded 
warehouse, the provisions of subpart O of this part, with respect to 
losses of wine after withdrawal without payment of tax and to claims for 
remission of the tax thereon, shall be applicable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382, (26 U.S.C. 5370, 5371))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]

                  Return of Wines to Bonded Wine Cellar



Sec. 252.130  General.

    On application of the proprietor of a bonded wine cellar, wine which 
has been lawfully withdrawn without payment of tax under the provisions 
of this subpart for exportation, or for use on vessels and aircraft, or 
for deposit in a foreign-trade zone, in a manufacturing bonded 
warehouse, or in a customs bonded warehouse, may for good cause be 
returned to the bonded wine cellar from which withdrawn, for storage 
pending subsequent removal for lawful purposes. However, such wine must 
be returned before being exported, laden as supplies or used aboard 
vessels or aircraft, or deposited in a foreign-trade zone, in a 
manufacturing bonded warehouse, or in a customs bonded warehouse, as the 
case may be.

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]



Sec. 252.131  Application for return of wines withdrawn without payment of tax.

    Where a proprietor of a bonded wine cellar desires to return wines 
to his bonded wine cellar as provided in Sec. 252.130, he shall submit a 
written application, in duplicate, to the appropriate ATF officer, for 
approval of the return of the wines. The application shall show.
    (a) Name, address, and registry number of the bonded wine cellar.
    (b) Name and address of the principal on the bond under which the 
wines were withdrawn.
    (c) Serial number of the ATF Form 5100.11 and the date withdrawn.
    (d) Present location of wines to be returned.
    (e) Kind of wines to be returned.
    (f) Number, kind, and serial numbers of the containers to be 
returned. In the case of bottled wines, the number and size of the 
bottles in each case.
    (g) Total quantity in wine gallons for each separate tax class of 
wines to be returned.
    (h) Reason for return of the wines.

[[Page 29]]


The application shall be executed under the penalties of perjury. On 
approval of the application the appropriate ATF officer shall return 
both copies to the proprietor, who, in turn, shall deliver them to the 
exporter.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



Sec. 252.132  Responsibility for return of wine.

    The principal on the bond under which the wines were withdrawn 
without payment of tax shall be responsible for arranging the return of 
the wines to the bonded wine cellar from which they were withdrawn. In 
case of emergency, the principal on the bond may arrange the return of 
wines to bonded premises without an approved application, but such wines 
shall be kept separate at the bonded premises and shall not be recorded 
in the records and reports of the proprietor until an approved 
application for such return has been obtained as provided in 
Sec. 252.131. Such principal or his agent shall present to the 
appropriate customs official the two copies of the approved application 
authorizing the return unless the wines are returned before the ATF Form 
5100.11 has been filed with the customs official. The customs officer 
shall, if he finds that the wines are eligible for return under 
Sec. 252.130, accept the approved application as authority for the 
return of the wines to the bonded wine cellar noted on the application 
and shall mark each copy of ATF Form 5100.11 ``Canceled'', note the date 
thereon, affix a copy of the approved application to each of the 
canceled ATF Forms 5100.11, return both ATF Forms 5100.11 to the 
principal, and, where the wines are in his custody, release them for 
return. The canceled ATF Forms 5100.11, with attachments, shall be 
delivered by such principal or his agent to the proprietor of the bonded 
wine cellar. When wines have been returned before the ATF Forms 5100.11 
were filed with customs officials, the two copies of the approved 
application shall be submitted, by the principal or his agent, to the 
proprietor of the bonded wine cellar who shall cancel and date each copy 
of ATF Form 5100.11 and affix copies of the approved application 
thereto.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



Sec. 252.133  Disposition of forms.

    On receipt of the wines at the bonded wine cellar, the proprietor 
shall endorse, on each copy of the approved application to return the 
wines, the date received, the total amount in wine gallons of each tax 
class of wine returned, and affix his signature. He shall forward the 
original ATF Form 5100.11, with attached application, to the appropriate 
ATF officer, and retain the remaining copy for his files. The storage, 
disposition, and records pertaining to such returned wines shall be in 
accordance with the applicable provisions of part 24 of this chapter.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



 Subpart G--Removal of Beer and Beer Concentrate Without Payment of Tax 
for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to 
                          a Foreign-Trade Zone

    Source: T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, unless otherwise 
noted.



Sec. 252.141  General.

    (a) Beer. Beer may, subject to this part, be removed from the 
brewery without payment of tax for:
    (1) Export to a foreign country;
    (2) Use as supplies on the vessels and aircraft described in 
Sec. 252.21; or
    (3) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation.
    (b) Beer concentrate. Concentrate, produced from beer under the 
provisions of subpart R of part 25 of this chapter may, subject to this 
part, be removed from the brewery without payment of tax for:
    (1) Export to a foreign country; or

[[Page 30]]

    (2) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation.
    (c) Bond. All removals of beer or beer concentrate will be made by 
the brewer under the provisions of the brewer's bond, Form 5130.22 as 
prescribed in Sec. 252.60.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))



Sec. 252.142  Notice, Form 1689 (5130.12).

    When a brewer intends to remove beer or beer concentrate without 
payment of tax from a brewery for exportation or for transportation to 
and deposit in a foreign-trade zone, or remove beer for use as supplies 
on vessels and aircraft, the brewer shall prepare a notice on Form 1689 
(5130.12) for each withdrawal. The brewer shall execute Form 1689 
(5130.12) in quadruplicate, except when the shipment is for use on 
aircraft the brewer shall execute an extra copy which will be marked 
``Consignee's Copy.''

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))



Sec. 252.143  Containers.

    (a) Beer. Beer being exported, used as supplies on vessels and 
aircraft, or transferred to and deposited in a foreign-trade zone, 
without payment of tax, may be removed in bottles, kegs, or bulk 
containers.
    (b) Beer concentrate. Concentrate may not be removed for export, or 
for transfer to and deposit in a foreign-trade zone, in containers of 
the kind ordinarily used by brewers for the removal of beer for 
consumption or sale.



Sec. 252.144  Export marks.

    (a) General Requirement. In addition to the marks and brands 
required to be placed on containers of beer or beer concentrate under 
the provisions of part 25 of this chapter, the brewer shall mark the 
word ``Export'' on each container or case of beer, or the words ``Beer 
concentrate for export'' on each container of beer concentrate, before 
removal from the brewery for any exportation authorized under this 
subpart.
    (b) Exceptions. A brewer need not apply the mark ``Export'' on cases 
of beer being exported under the following circumstances:
    (1) When beer is being directly exported by the brewer, and the 
brewer can furnish documentation (such as an ocean or air freight bill 
of lading, or a foreign landing certificate) that the beer was directly 
exported to a foreign country;
    (2) When cased beer is transferred from a brewery to a foreign-trade 
zone for export or for storage pending exportation; or
    (3) When cased beer is exported to the military.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))



Sec. 252.145  Consignment, shipment and delivery.

    The consignment, shipment and delivery of beer or beer concentrate 
removed from a brewery without payment of tax under this subpart will be 
in accordance with the applicable provisions of subpart M of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))



Sec. 252.146  Disposition of forms.

    On removal of the beer or beer concentrate withdrawn under the 
provisions of this subpart, the brewer shall forward one copy of Form 
1689 (5130.12) to the appropriate ATF officer, retain one copy for the 
files, and deliver the original and remaining copy to the officer to 
whom the shipment is consigned, or in whose care it is shipped, as 
required by subpart M of this part. When the shipment is for delivery 
for use on aircraft, the copy marked ``Consignee's Copy,'' provided for 
in Sec. 252.142, will be forwarded to the airline company at the 
airport.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))

[[Page 31]]



Sec. 252.147  Return of beer or beer concentrate.

    Beer or beer concentrate removed without payment of tax under the 
provisions of this subpart may be returned to be brewery from which 
removed if lading of the beer or beer concentrate is delayed more than 
the period provided in Sec. 252.262 or when the brewer has other good 
cause for return. The brewer shall request the district director of 
customs to release the beer or beer concentrate for return to the 
brewery and, on such release, the district director of customs shall 
endorse both copies of the appropriate Form 1689 (5130.12) to show the 
release of the beer or beer concentrate and shall return the forms to 
the brewer. On return of the beer or beer concentrate to the brewery, 
the brewer shall record the quantity in the brewery daily records, mark 
the two copies of Form 1689 (5130.12) returned by the district director 
of customs, ``Canceled--Returned to Brewery,'' and forward one copy to 
the appropriate ATF officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended 
(26 U.S.C. 5053, 5056))



Sec. 252.148  Brewer's report.

    The brewer's records shall reflect the quantity of beer or beer 
concentrate removed without payment of tax under this subpart, and the 
brewer shall report the quantity of beer or beer concentrate so removed 
on Form 5130.9. The total quantity of beer or beer concentrate involved 
in all export shipments returned during any reporting period will be 
reported as a separate entry on Form 5130.9.

(Approved by the Office of Management and Budget under control number 
1512-0052)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

[T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40358, July 28, 1993]



Sec. 252.149  Losses.

    When there has been a loss of beer or beer concentrate while in 
transit from the brewery to a port for exportation, or for lading as 
supplies on a vessel or aircraft, or to a foreign-trade zone, the 
provisions of subpart O of this part, with respect to losses are 
applicable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5053))



Sec. 252.150  Charges and credits on bond.

    The removal of beer concentrate from the brewery without payment of 
tax under this subpart will constitute a charge against the brewer's 
bond, Form 5130.22, of an amount equal to the tax which would be due on 
removal for consumption or sale, including penalties and interest, on 
all beer used to produce the concentrate which is removed. The 
satisfactory accounting for concentrate so removed will constitute a 
credit to the bond.

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986]

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5053))



 Subpart H--Withdrawal of Specially Denatured Spirits, Free of Tax, for 
             Exportation or Transfer to a Foreign-Trade Zone



Sec. 252.151  General.

    Specially denatured spirits may, under this part, be withdrawn from 
the bonded premises of a distilled spirits plant, free of tax, for:
    (a) Exportation; or
    (b) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation.

All such withdrawals shall be made under a consent of surety on the 
proprietor's operations or unit bond, as prescribed in Sec. 252.58(c).

(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



Sec. 252.152  Notice, ATF Form 5100.11.

    Notice of withdrawal of specially denatured spirits, as authorized 
in Sec. 252.151 shall be made on ATF Form 5100.11 by the proprietor of 
the distilled

[[Page 32]]

spirits plant from which the denatured spirits are to be withdrawn.

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]



Sec. 252.153  Withdrawal procedure.

    The provisions of Secs. 252.93, 252.94, 252.98, 252.105, and 252.117 
in respect of method of conveyance, authorized containers, gauging, 
inspection, approval and shipment, report of removal, and disposition of 
forms shall be applicable to specially denatured spirits to be withdrawn 
under the provisions of this subpart.

(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)

[T.D. ATF-46, 42 FR 44774, Sept. 6, 1977]



Sec. 252.154  Export marks.

    In addition to the marks and brands required to be placed on 
packages and cases at the time they are filled under the provisions of 
part 19 of this chapter, the proprietor shall mark the word ``Export'' 
on the Government side of each case or Government head of each container 
before removal from the bonded premises for any exportation authorized 
under this subpart.

(Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); 
sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]



Sec. 252.155  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of specially denatured 
spirits withdrawn free of tax under this subpart shall be made under the 
provisions of subpart M of this part.

(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)



Sec. 252.156  Losses.

    Where there has been a loss of specially denatured spirits while in 
transit from the bonded premises of a distilled spirits plant to a port 
of export or a foreign-trade zone, the exporter shall file claim for 
allowance of the loss in accordance with the provisions of subpart O of 
this part.

        Return of Specially Denatured Spirits to Bonded Premises



Sec. 252.160  General.

    Specially denatured spirits, which have been lawfully withdrawn free 
of tax under the provisions of this part for exportation, or for deposit 
in a foreign-trade zone, may, subject to the requirements of 
Sec. 252.161, be returned:
    (a) To the bonded premises of a distilled spirits plant for 
redistillation; or
    (b) To the bonded premises of any distilled spirits plant pending 
subsequent lawful withdrawal free of tax. However, such specially 
denatured spirits may only be returned before they are exported, or 
deposited in a foreign-trade zone. If the specially denatured spirits 
are to be returned to bonded premises for storage without 
redistillation, the proprietor shall also execute a consent of surety 
Form 1533 to extend the terms of his operations or unit bond to cover 
the return and storage of such specially denatured spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985]



Sec. 252.161  Notice of return of specially denatured spirits.

    If a proprietor of a distilled spirits plant desires to return 
specially denatured spirits to his plant as provided in Sec. 252.160, he 
shall file a notice with the appropriate ATF officer. A copy of the 
notice shall be prepared for submission to the customs official, as 
required by Sec. 252.162. The notice shall be executed under the 
penalties of perjury and shall show:
    (a) Name, address, and plant number of the distilled spirits plant 
to which the specially denatured spirits are to be returned.
    (b) Name, address, and plant number of the distilled spirits plant 
from which the specially denatured spirits were withdrawn.
    (c) Serial number of the ATF Form 5100.11 and the date withdrawn.
    (d) Present location of specially denatured spirits to be returned.
    (e) Description of the specially denatured spirits--kind, serial 
numbers of containers, and quantity in wine gallons.

[[Page 33]]

    (f) Reason for return of the specially denatured spirits.
    (g) Disposition to be made of specially denatured spirits, i.e. 
redistillation or return to processing on the bonded premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. ATF-198, 50 
FR 8561, Mar. 1, 1985]



Sec. 252.162  Responsibility for return of specially denatured spirits.

    The principal on the bond under which the specially denatured 
spirits were withdrawn free of tax shall be responsible for arranging 
the return of the spirits to the distilled spirits plant receiving them. 
The principal or his agent shall submit a copy of the notice required by 
Sec. 252.161 to the appropriate customs official. If the specially 
denatured spirits are returned before the ATF Form 5100.11 has been 
filed with the customs official, the principal shall submit the form 
with the notice. The customs officer shall, if the specially denatured 
spirits are eligible for return under Sec. 252.160, accept the notice as 
authority for the return of the specially denatured spirits to the 
distilled spirits plant identified in the notice. The customs officer 
shall retain the notice and shall mark each copy of ATF Form 5100.11 
``Canceled'', note the date thereon, return both copies to the 
principal, and, if the spirits are in customs custody, release them for 
return. The principal shall retain one copy of the canceled ATF Form 
5100.11 and file one copy with the appropriate ATF officer identified on 
the form.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



Sec. 252.163  Receipt of specially denatured spirits.

    The receipt, gauge, and disposition of the specially denatured 
spirits at the distilled spirits plant shall be in accordance with the 
applicable provisions of subpart U of part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



  Subpart I--Exportation of Distilled Spirits With Benefit of Drawback



Sec. 252.171  General.

    Distilled spirits manufactured, produced, bottled in bottles, packed 
in containers, or packaged in casks or other bulk containers in the 
United States on which an internal revenue tax has been paid or 
determined, and which have been marked under the provisions of 27 CFR 
part 19 and of this part, as applicable, especially for export with 
benefit of drawback may be:
    (a) Exported;
    (b) Laden for use on the vessels or aircraft described in 
Sec. 252.21; or
    (c) Transferred to and deposited in a foreign-trade zone for 
exportation or for storage pending exportation; or
    (d) Transferred to and deposited in a customs bonded warehouse as 
provided for in Sec. 252.26(b).

On receipt by the appropriate ATF officer of required evidence of 
exportation, lading for use, or transfer, there shall be allowed to the 
bottler (or packager) of the spirits, drawback equal in amount to the 
tax found to have been paid or determined on the spirits.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[25 FR 5734, June 23, 1960, as amended by T.D. 7112, 36 FR 8581, May 8, 
1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.171, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                      Filing of Notice and Removal



Sec. 252.190  Notice, ATF Form 5110.30.

    Notice of shipment of distilled spirits for export, for use as 
supplies on vessels or aircraft, for deposit in a foreign-trade zone, or 
for deposit in a customs

[[Page 34]]

bonded warehouse, shall be prepared by the exporter on ATF Form 5110.30, 
in accordance with the instructions on the form.

(48 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as 
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985]



Sec. 252.191  [Reserved]



Sec. 252.192  Packages of distilled spirits to be gauged.

    Except for spirits which may be tax determined on the basis of the 
original gauge, spirits in packages which are to be removed for export 
with benefit of drawback, shall be gauged by the distilled spirits plant 
proprietor prior to preparation of notice on ATF Form 5110.30. When 
spirits in packages are gauged, a package gauge record shall be prepared 
by the proprietor, as provided in 27 CFR part 19, and a copy of the 
package gauge record shall be attached to each copy of ATF Form 5110.30 
and considered a part of the claim.

(Approved by the Office of Management and Budget under control number 
1512-0250 and 1512-0199)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985]



Sec. 252.193  Export marks.

    In addition to the marks and brands required to be placed on 
packages or other bulk containers and cases under the provisions of part 
19 of this chapter, the exporter shall mark the word ``Export'' on the 
Government side of each case or Government head of each container before 
removal for export, for use on vessels or aircraft, or for transfer to a 
foreign-trade zone or a customs bonded warehouse.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]



Secs. 252.194-252.195  [Reserved]



Sec. 252.195b  Claims on spirits tax determined on and after January 1, 1980.

    (a) Preparation. Claims for drawback of tax on spirits tax 
determined on and after January 1, 1980, and withdrawn for any purpose 
authorized by Sec. 252.171, shall be prepared in duplicate by the 
bottler or packager on parts II and III of ATF Form 5110.30.
    (b) Supporting documents. Each claim shall be supported by an 
invoice, bill of lading or other document which identifies the date of 
tax determination, unless the bill of lading required by Sec. 252.250 
identifies this date. Additional supporting documents are required if 
the claim covers distilled spirits products on which the claimed 
drawback rate exceeds the rate of tax imposed by 26 U.S.C. 5001 or 7652 
on each proof gallon or part thereof of distilled spirits produced in or 
imported into the United States (e.g., a product containing alcoholic 
flavoring materials on which drawback has been claimed by the 
manufacturer of the material under 26 U.S.C. 5131-5134). For each such 
product, the additional supporting documents shall consist of a copy of 
each related dump and batch record, package gauge record as prescribed 
in 27 CFR part 19, and/or bottling and packaging record. The appropriate 
ATF officer may also require these or other supporting documents for any 
distilled spirits product.
    (c) Filing. One copy of the claim, with supporting documents, if 
required, shall be filed with the appropriate ATF officer. The bottler 
or packager shall retain the other copy on file.

(Approved by the Office of Management and Budget under control number 
1512-0198)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-212, 50 
FR 34123, Aug. 23, 1985]



Sec. 252.196  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of distilled spirits removed 
under this subpart for export, use on vessels or aircraft, transfer to a 
customs bonded warehouse, or transfer to

[[Page 35]]

a foreign-trade zone, shall be in accordance with the applicable 
provisions of subpart M of this part.

(72 Stat. 1336, 84 Stat. 1965; 26 U.S.C. 5062, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.197  Return of spirits withdrawn for export with benefit of drawback.

    When notice is filed by an exporter as provided in Sec. 252.198, 
spirits on which the tax has been paid or determined, and which were 
withdrawn especially for export with benefit of drawback as provided in 
Sec. 252.171, but which spirits have not been laden for export, laden 
for use, or deposited in a customs bonded warehouse or foreign-trade 
zone, may for good cause be returned under the applicable provisions of 
this part and 27 CFR part 19:
    (a) To the bonded premises of the distilled spirits plant for 
purposes authorized under 26 U.S.C.; or
    (b) To a wholesale liquor dealer; or
    (c) To a taxpaid storeroom.

The export marks on spirits returned under this section shall be removed 
by obliteration, relabeling or recasing.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23956, June 7, 1985]



Sec. 252.198  Notice of return.

    If an exporter desires to return spirits to a distilled spirits 
plant, wholesale liquor dealer or taxpaid storeroom, as provided in 
Sec. 252.197, he shall file a notice, executed under the penalties of 
perjury, with the appropriate ATF officer. The notice shall be prepared 
in triplicate for submission to the customs official as required in 
Sec. 252.199. The notice shall show the:
    (a) Name, address, and plant number of the distilled spirits plant 
which packaged or bottled the spirits;
    (b) Date and serial number of the ATF Form 5110.30 on which the 
spirits were withdrawn;
    (c) Present location of the spirits to be returned;
    (d) Number, size and identification of the containers;
    (e) Proof of spirits;
    (f) Reason for the return; and
    (g) Planned disposition of the returned spirits.

(Approved by the Office of Management and Budget under control number 
1512-0206)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]



Sec. 252.199  Responsibility for return of spirits withdrawn for export with benefit of drawback.

    The exporter shall be responsible for arranging the return of the 
spirits under this subpart to the proprietor or wholesale liquor dealer 
who will receive them. The exporter or his agent shall submit the 
original and copies of the notice required by Sec. 252.198 to the 
appropriate customs official. If the spirits are returned before ATF 
Form 5110.30 has been filed with the customs official, the exporter 
shall submit Form 5110.30 with the notice. The customs officer shall, if 
the spirits are eligible for return under Sec. 252.197, accept the 
notice as authority for the return of the spirits to the premises 
identified in the notice. The customs official shall acknowledge receipt 
on the notice, retain a copy, and return the original and one copy of 
the notice to the exporter. The exporter shall retain the copy of the 
notice and file the original of the notice with the appropriate ATF 
officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]

Subpart J [Reserved]



         Subpart K--Exportation of Wine With Benefit of Drawback



Sec. 252.211  General.

    Wines manufactured, produced, bottled in bottles packed in 
containers, or packaged in casks or other bulk containers in the United 
States on which an internal revenue tax has been paid or determined, and 
which are filled on premises qualified under this chapter to package or 
bottle wines, may, subject to this part, be:
    (a) Exported;

[[Page 36]]

    (b) Laden for use on the vessels or aircraft described in 
Sec. 252.21; or
    (c) Transferred to and deposited in a foreign-trade zone for 
exportation or for storage pending exportation.

On receipt by the appropriate ATF officer of required evidence of 
exportation, lading for use, or transfer, there shall be allowed a 
drawback equal in amount to the tax found to have been paid or 
determined on the wines.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-51, 43 FR 24245, June 2, 1978]



Sec. 252.212  Persons authorized.

    Persons who have qualified under this chapter as proprietors of 
distilled spirits plants, bonded wine cellars, or taxpaid wine bottling 
houses, and persons who are wholesale liquor dealers as defined in 
section 5112, I.R.C., and have paid the required tax as a wholesale 
liquor dealer, are authorized to remove wines under the provisions of 
this subpart.

(72 Stat. 1336; 26 U.S.C. 5062)



Sec. 252.213  [Reserved]



Sec. 252.214  Notice and claim, Form 1582-A (5120.24).

    Claim for allowance of drawback of internal revenue taxes on wines 
removed under the provisions of Sec. 252.211 and Sec. 252.212, shall be 
prepared by the exporter on Form 1582-A (5120.24), in quadruplicate: 
Provided, That where the withdrawal is for use on aircraft, an extra 
copy, marked ``Consignee's Copy'', shall be prepared. Each Form 1582-A 
(5120.24) shall be given, by the exporter, a serial number beginning 
with ``1'' for the first day of January of each year and running 
consecutively thereafter to December 31, inclusive.

(46 Stat. 690, as amended, 72 Stat. 1336; 19 U.S.C. 1309, 26 U.S.C. 
5062)



Sec. 252.215  Certificate of tax determination, Form 2605 (5120.20).

    Every claim for drawback of tax on Form 1582-A (5120.24) shall be 
supported by a certificate, Form 2605 (5120.20), which shall be 
executed, in duplicate, (a) by the person who withdrew the wine from 
bond on tax determination, certifying that all taxes have been properly 
determined on such wine, or (b) where the wine was bottled or packaged 
after tax determination, by the person who did such bottling or 
packaging, certifying that the wines so bottled or packaged were 
received in taxpaid status and specifying from whom they were so 
received. The appropriate ATF officer may require other evidence of tax 
payment whenever such officer deems it necessary. The exporter is 
responsible for securing Form 2605 (5120.20), properly executed, and 
submitting the original of such form with the claim. The exporter shall 
retain the copy of Form 2605 (5120.20) for his files.

(72 Stat. 1336; 26 U.S.C. 5062)



Sec. 252.216  Export marks.

    In addition to the marks and brands required to be placed on 
packages or other bulk containers and cases under the provisions of 
parts 24 of this chapter, the exporter shall mark the word ``Export'' on 
the Government side of each case or Government head of each container 
before removal for export, for use on vessels or aircraft, or for 
transfer to a foreign-trade zone.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-299, 55 
FR 25034, June 19, 1990; T.D. ATF-372, 61 FR 20725, May 8, 1996]



Sec. 252.217  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of wines removed under this 
subpart shall be made under the provisions of subpart M of this part.

(72 Stat. 1336; 26 U.S.C. 5062)



Sec. 252.218  Disposition of Forms 1582-A (5120.24).

    On removal of the wines from the premises, the exporter shall 
forward one copy of Form 1582-A (5120.24) to the

[[Page 37]]

appropriate ATF officer, retain one copy for his files, and deliver the 
original and remaining copy to the officer to whom the shipment is 
consigned, or in whose care it is shipped, as required by subpart M of 
this part. Where the shipment is for delivery for use on aircraft, the 
copy marked ``Consignee's Copy'', provided for in Sec. 252.214, shall be 
forwarded to the airline company at the airport.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5062)



Sec. 252.219  Return of wine withdrawn for export with benefit of drawback.

    When notice is filed by an exporter as provided in Sec. 252.220, 
wine on which the tax has been paid or determined, and which was 
withdrawn especially for export with benefit of drawback as provided in 
Sec. 252.211, but which wine has not been laden for export, laden for 
use, or deposited in a foreign-trade zone, may for good cause be 
returned under the applicable provisions of this part and 27 CFR part 
24:
    (a) To a taxpaid storeroom at a bonded wine celler; or
    (b) To a wholesale liquor dealer.

The export marks on wines returned under this section shall be removed 
from the containers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. ATF-344, 58 
FR 40355, July 28, 1993]



Sec. 252.220  Notice of return.

    If an exporter desires to return wine to a bonded wine cellar or 
wholesale liquor dealer as provided in Sec. 252.219, he shall file a 
notice, executed under the penalties of perjury, with the appropriate 
ATF officer. The notice shall be prepared in triplicate for submission 
to the customs official as required in Sec. 252.220a. The notice shall 
show the:
    (a) Name, address, and registration number of the bonded wine cellar 
from which withdrawn;
    (b) Date and serial number of the Form 1582-A (5120.24) on which the 
wine was withdrawn;
    (c) Present location of the wine to be returned;
    (d) Number, size and identification of the containers;
    (e) Total wine gallons for each tax class of wine; and
    (f) Reason for the return.

(Approved by the Office of Management and Budget under control number 
1512-0292)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec. 252.220a  Responsibility for return of wine withdrawn for export with benefit of drawback.

    The exporter shall be responsible for arranging the return of wine 
under this subpart to the proprietor or wholesale liquor dealer 
receiving the wine. The exporter or his agent shall submit the original 
and copies of the notice required by Sec. 252.220 to the appropriate 
customs official. If the wine is returned before Form 1582-A (5120.24) 
has been filed with the customs official, the exporter shall submit ATF 
Form 1582-A with the notice. The customs officer shall, if the wine is 
eligible for return under Sec. 252.219, accept the notice as authority 
for the return of the wine to the premises identified in the notice. The 
customs officer shall acknowledge receipt of the notice, retain a copy, 
and return the original and one copy of the notice to the exporter. The 
exporter shall retain the copy and file the original of the notice with 
the appropriate ATF officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]



         Subpart L--Exportation of Beer With Benefit of Drawback



Sec. 252.221  General.

    Beer brewed or produced in the United States and on which the 
internal revenue tax has been paid may, subject to this part, be:
    (a) Exported;
    (b) Delivered for use as supplies on the vessels and aircraft 
described in Sec. 252.21; or

[[Page 38]]

    (c) Transferred to and deposited in a foreign-trade zone for 
exportation or for storage pending exportation.

Claim for drawback of taxes found to have been paid may be filed only by 
the producing brewer or his duly authorized agent. On receipt by the 
appropriate ATF officer of required evidence of such exportation, 
delivery for use, or transfer, there shall be allowed a drawback equal 
in amount to the tax found to have been paid on such beer.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)



Sec. 252.222  Claim, Form 1582-B (5130.6).

    Claim for allowance of drawback of internal revenue taxes on beer 
brewed or produced in the United States shall be prepared on Form 1582-B 
(5130.6), in quadruplicate, as required by this part. Each Form 1582-B 
(5130.6) shall be given, by the person initiating the form, a serial 
number beginning with ``1'' for the first day of January of each year 
and running consecutively thereafter to December 31, inclusive.

(72 Stat. 1335; 26 U.S.C. 5055)



Sec. 252.223  Export marks.

    In addition to the marks and brands required to be placed on kegs, 
barrels, cases, crates or other packages under the provisions of part 25 
of this chapter, the exporter shall mark the word ``Export'' on each 
container or case before removal for export, for use on vessels or 
aircraft, or for transfer to a foreign-trade zone.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 
5055))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-224, 51 
FR 7700, Mar. 5, 1986]

                           Execution of Claims



Sec. 252.225  Removals of beer by brewer.

    Where a brewer removes taxpaid beer from the brewery or from its 
place of storage elsewhere for exportation, for lading for use as 
supplies on vessels or aircraft, or for deposit in a foreign-trade zone, 
he shall execute the notice and claim on Form 1582-B (5130.6). On 
removal of the beer for shipment the brewer shall file one copy of Form 
1582-B with the appropriate ATF officer, retain one copy for his files, 
and immediately forward the original and one copy of the form:
    (a) In case of shipments for export or for use as supplies on 
vessels or aircraft, to the district director of customs at the port of 
export; or
    (b) In the case of shipments to the armed services of the United 
States for export, to the commanding or supply officer to whom the 
shipment is consigned; or
    (c) In the case of shipments to a foreign-trade zone, to the customs 
officer in charge of the zone.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.226  Removals of beer by agent on behalf of brewer.

    Where proper power of attorney authorizing an agent to execute a 
claim on behalf of the brewer has been filed with the appropriate ATF 
officer, such agent may, for any of the purposes authorized in 
Sec. 252.221, remove taxpaid beer from the brewery where produced or 
from its place of storage elsewhere, and execute the notice and claim on 
Form 1582-B (5130.6) on behalf of the brewer. On removal of the beer, 
such agent shall dispose of Form 1582-B in accordance with the 
applicable procedure set forth in Sec. 252.225.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)



Sec. 252.227  Removals of beer by persons other than the brewer or agent of the brewer.

    Where there is a removal of taxpaid beer by a person other than the 
brewer or the agent of the brewer for any of the purposes authorized in 
Sec. 252.221, such person shall execute the notice, only, on Form 1582-B 
(5130.6). Where the removal consists of the products of more than one 
brewer, separate Forms 1582-B shall be prepared for the products of each 
brewer. On removal of the

[[Page 39]]

beer for shipment such person shall forward two copies of Form 1582-B 
(5130.6) to the producing brewer, and immediately forward the original 
and one copy of the form as prescribed in Sec. 252.225(a), (b), or (c), 
as the case may be. On receipt of the two copies of Form 1582-B (5130.6) 
from the exporter, the brewer shall, if he wishes to claim drawback on 
the beer covered thereby, execute the claim for drawback on both copies 
of the form, file one copy of the claim with the appropriate ATF 
officer, and retain the remaining copy for his files.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)

                   Consignment, Shipment, and Delivery



Sec. 252.230  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of taxpaid beer removed 
under this subpart shall be made under the provisions of subpart M of 
this part.

(72 Stat. 1335; 26 U.S.C. 5055)



               Subpart M--Shipment or Delivery for Export

                               Consignment



Sec. 252.241  Shipment for export, or for use on vessels.

    All liquors and specially denatured spirits intended for export or 
liquors intended for use as supplies on vessels shall be consigned to 
the district director of customs at the port of exportation, or port of 
lading for supplies on vessels, except that when the shipment is for 
export to a contiguous foreign territory it shall be consigned to the 
foreign consignee at destination in care of the district director of 
customs at the port of export.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.242  Shipment for use on aircraft.

    (a) Distilled spirits and wine. All distilled spirits and wines 
intended for use on aircraft shall be consigned to the airline at the 
airport from which the aircraft will depart in international travel, in 
care of the district director of customs. On receipt of the distilled 
spirits or wines they shall be stored at the airport under customs 
custody until laden on aircraft.
    (b) Beer. Beer intended for use on aircraft shall be consigned to 
the district director of customs at the port of lading.

(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 1309, 26 
U.S.C. 5214, 5362)

[25 FR 5734, June 23, 1969, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.243  Shipment to armed services.

    On removal of distilled spirits, wines, or beer for export to the 
armed services of the United States, the shipment shall be consigned to 
the commanding officer or supply officer at the supply base or other 
place of delivery.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)



Sec. 252.244  Shipment to manufacturing bonded warehouse.

    Distilled spirits and wines withdrawn for shipment to a 
manufacturing bonded warehouse shall be consigned to the proprietor of 
such warehouse in care of the customs officer in charge of the 
warehouse.

(72 Stat. 1362, 1380; 26 U.S.C. 5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979]



Sec. 252.244a  Shipment to a customs bonded warehouse.

    Distilled spirits and wine withdrawn for shipment to a customs 
bonded warehouse shall be consigned in care of the customs officer in 
charge of the warehouse.

(Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); 
sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]



Sec. 252.245  Shipment to foreign-trade zone.

    Where distilled spirits (including specially denatured spirits), 
wines, or beer, are transferred to a foreign-trade

[[Page 40]]

zone for exportation or for storage pending exportation, the shipment 
shall be consigned to the Zone Operator in care of the customs officer 
in charge of the zone.

(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 81c, 26 U.S.C. 
5214, 5362)



Sec. 252.246  Delivery for shipment.

    The proprietor or exporter may deliver the shipment directly to the 
consignees designated in Secs. 252.241 through 252.245, or he may 
deliver it to a carrier for transportation and delivery to such 
consignees, or, when the exportation is to a contiguous foreign country, 
to the foreign consignee.

(72 Stat. 1334, 1335, 1336, as amended, 1362, 1380; 26 U.S.C. 5053, 
5055, 5062, 5214, 5362)

[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.247  Change in consignee.

    Where a change of consignee is desired after the liquors (including 
specially denatured spirits) have been removed from the shipping 
premises, the exporter shall notify the appropriate officer to whom the 
shipment is required by Secs. 252.241-252.245 to be consigned or in 
whose care it is required to be shipped, and forward a copy of such 
notification to the appropriate ATF officer. Such notice shall identify 
the withdrawal or claim form, as the case may be, covering the shipment.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

                             Bills of Lading



Sec. 252.250  Bills of lading required.

    A copy of the export bill of lading covering transportation from the 
port of export to the foreign destination, or a copy of the through bill 
of lading to the foreign destination, if so shipped, covering the 
acceptance of the shipment by a carrier for such transportation, shall 
be obtained and filed by the claimant or exporter with the appropriate 
ATF officer. Where the shipment consists of distilled spirits for 
deposit in a customs bonded warehouse, or distilled spirits or wines, 
for deposit in a foreign-trade zone, with benefit of drawback, and the 
principal has filed bond, Form 2738 (5110.68), a copy of the 
transportation bill of lading covering the shipment shall be obtained 
and filed by the claimant or exporter with the appropriate ATF officer: 
Provided, That such transportation bill of lading will not be required 
when delivery is made directly to the foreign-trade zone or the customs 
bonded warehouse by the shipper. Bills of lading shall be signed by the 
carrier or by an agent of the carrier and shall contain the following 
minimum information:
    (a) As to spirits specially denatured spirits, and wines:
    (1) The name of the exporter (if different from the shipper),
    (2) The name and address of the consignee (foreign consignee in case 
of export or through bill of lading),
    (3) The number of packages or cases,
    (4) The serial number of the ATF Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, and
    (5) The total quantity in wine gallons or liters,
    (b) As to beer:
    (1) The name of the shipper,
    (2) The name and address of the consignee (foreign consignee in case 
of export or through bill of lading), and
    (3) The number and size of containers.

Where a copy of an export bill of lading or a copy of the through bill 
of lading is required and is not obtainable, a certificate given by an 
agent of such carrier, as prescribed in Sec. 252.253, may be procured 
and transmitted by the claimant or exporter to the appropriate ATF 
officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, 1335, 1336, as amended, 1362, 
1380, (26 U.S.C. 5053, 5055, 5062, 5214, 5362); sec. 3(a), Pub. L. 91-
659, 84 Stat. 1965 (26 U.S.C. 5066))

[T.D. 7002, 34 FR 1599, Feb. 1, 1969, as amended by 36 FR 8583, May 8, 
1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.250, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 252.251  Railway express receipts.

    Where the exportation is to a contiguous foreign country and the 
shipment is by railway express, a receipt issued by the railway express 
agency may be

[[Page 41]]

accepted in lieu of an export bill of lading if the receipt furnishes 
all of the information required in an export bill of lading.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)



Sec. 252.252  Air express or freight bills of lading.

    Where the exportation is made by air express or air freight, a bill 
of lading issued by the conveying airline is considered for the purpose 
of this part to be an export bill of lading if it otherwise conforms to 
the requirements of Sec. 252.250.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)



Sec. 252.253  Certificate by export carrier.

    A certificate, executed under the penalties of perjury, by an agent 
or representative of the export carrier, showing actual exportation of 
the liquors (including specially denatured spirits) may be furnished by 
an exporter as evidence of exportation. The certificate shall contain a 
description of the shipment, including the serial number of the 
withdrawal form, or the claim and entry form, as the case may be, the 
name of the exporter, the name of the consignee, the date received, the 
place where received by such carrier, and the name of the carrier from 
which received.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)



                Subpart N--Proceedings at Ports of Export



Sec. 252.261  Notice to district director of customs.

    On arrival at the port of exportation, of distilled spirits 
(including specially denatured spirits), wines, or beer, withdrawn or 
shipped for exportation or for use on vessels or aircraft, the exporter 
or his agent shall immediately notify the director of the port. At the 
same time, or prior thereto, the exporter or his agent shall file with 
the director two copies of the application, claim, or notice, ATF Form 
5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), 
as the case may be, covering the shipment: Provided, That where the 
shipment is for direct exportation, such forms shall be filed at least 
six hours prior to lading.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.261, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 252.262  Delay in lading at port.

    If, on arrival of a shipment withdrawn for export without payment of 
tax or free of tax, the exporting vessel is not prepared to receive the 
shipment, the district director of customs may permit such shipment to 
remain in possession of a carrier for a period not exceeding 30 days. 
Storage elsewhere for a like cause, and not exceeding the same period, 
may be approved by the district director of customs. In the event of 
further delay, the facts shall be reported to the appropriate ATF 
officer, who shall issue appropriate instructions concerning the 
disposition of the shipment.

(72 Stat. 1334, 1362, 1380; 26 U.S.C. 5053, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.263  [Reserved]



Sec. 252.264  Lading for exportation.

    On receipt of the notifcation required in Sec. 252.261, the district 
director of customs shall deliver both copies of the application, claim, 
or notice, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), 
or 1689 (5130.12), as the case may be, covering the shipment, together 
with any forms which may be attached thereto, to a customs officer for 
inspection and supervision of lading. Such shipment shall be subject to 
the same requirements for inspection and supervision of lading at the 
port of exportation as may be required by Customs Regulations (19 CFR 
chapter I) in the case of similar shipments of imported merchandise to 
be exported in customs bond. When an inspection of

[[Page 42]]

the shipment is made before it is laden on board the exporting carrier 
and such inspection discloses any discrepancy, the customs officer shall 
make note of the nature and extent of the discrepancy on each copy of 
the application, claim, or notice, ATF Form 5110.11, 5110.30, 1582-A 
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and 
where the discrepancy involves one or more packages of distilled spirits 
or wine, he shall prepare customs Form 6001 in accordance with the 
instructions in Sec. 252.291, and attach the original and copy of 
customs Form 6001 to the original and copy of the appropriate 
transaction form. The forms shall be disposed of according to the 
instructions thereon.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended, 
1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 5053, 
5055, 5062, 5214, 5362))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.264, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 252.265  Evidence of fraud.

    If the customs inspection discloses evidence of fraud, the customs 
officer shall detain the merchandise and notify the district director of 
customs who shall report the facts forthwith to the appropriate ATF 
officer. The appropriate ATF officer shall make investigation and take 
such action as the facts may warrant. Where the detained merchandise has 
been withdrawn for transfer and deposit in a manufacturing bonded 
warehouse, the merchandise shall be deemed not to have been deposited in 
said warehouse, and the designated officer shall hold in abeyance the 
processing of ATF Form 5100.11 until advised by the district director of 
customs that the detained merchandise may be entered for deposit. Where 
the detained merchandise has been withdrawn or entered for deposit in a 
foreign-trade zone or a customs bonded warehouse, it shall be deemed to 
not have been deposited in the zone or the warehouse and the customs 
officer shall hold in abeyance the processing of the application, 
notice, or claim, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B 
(5130.6), or 1689 (5130.12), as the case may be, and Zone Form D, until 
advised by the district director of customs that the detained 
merchandise may be entered for deposit.

(48 Stat. 999, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380, 84 
Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5053, 5055, 5062, 5214, 5362, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979]



Sec. 252.266  Release of detained merchandise.

    When any merchandise has been detained under the provisions of 
Sec. 252.265, the district director of customs shall not release such 
merchandise until he is advised so to do by the appropriate ATF officer.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 252.267  Exportation from interior port.

    Where a shipment made under this part is to be exported to a 
contiguous foreign country through a frontier port, and it is desired to 
avoid the delay of customs inspection at such port, the shipment may, 
subject to approval of the district director of customs, be entered for 
exportation at an interior customs port. Subject to such approval, the 
inspection and supervision of lading, and the affixing of customs seals, 
shall be done by a customs officer in accordance with the provisions of 
U.S. Customs regulations (19 CFR chapter I). On completion of the 
lading, the seals shall be affixed and the customs officer shall execute 
the certificate of lading on both copies of the application, notice, or 
claim, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6) or 
1689 (5130.12), as the case may be, and forward them, with attachments 
(if any), to the district director of customs at the interior port of 
entry. The district director of customs shall forward both copies of the 
form, with attachments (if any), to the customs officer at the frontier 
port. When the customs officer at the frontier port is satisfied that 
the shipment as described on the appropriate form

[[Page 43]]

has been exported, he shall execute his certificate on both copies of 
the form and return them with attachments (if any), to the district 
director of customs at the interior port of entry.

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]



Sec. 252.268  Receipt for liquors for use on vessels or aircraft.

    Where liquors are withdrawn or removed for use on vessels or 
aircraft, the exporter shall procure and forward to the appropriate ATF 
officer, a receipt executed under the penalties of perjury by the master 
or other authorized officer of the vessel, steamship company, or 
airline, as the case may be. The receipt shall give the number of 
containers, the serial numbers of the containers (if any), and the 
quantity received, and shall show that the liquors are in customs 
custody and have been or will be laden on board the vessel or aircraft, 
that they will be lawfully used on board the vessel or aircraft, and 
that no portion of the shipment has been or will be unladen in the 
United States or any of its territories or possessions. A receipt is not 
required, in the case of any shipment for use on vessels, when the 
liquors are laden on vessels of war, or, in cases other than supplies 
for vessels employed in the fisheries, where the amount of the tax on 
the liquors does not exceed $200. In the case of supplies for vessels 
employed in the fisheries, compliance with the provisions of Sec. 252.22 
is also required.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, as amended, 1362, 
1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[T.D. 7002, 34 FR 1600, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.269  Certification by district director of customs.

    (a) Exportation. When the district director of customs is satisfied 
that merchandise described on the application, notice, or claim, ATF 
Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 
(5130.12), as the case may be, has been laden and cleared for export, he 
shall execute his certificate of lading and clearance on both copies of 
the form.
    (b) Distilled spirits and wines as supplies on vessels and aircraft. 
When the district director of customs is satisfied that the distilled 
spirits and wines described on ATF Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, have been duly laden for use on vessels 
and aircraft, and that proper accounting for such spirits or wines has 
been submitted to him as required by this part, he shall execute his 
certificate of lading for use on both copies of the form.
    (c) Disposition of forms. After executing his certificate, the 
district director of customs shall forward the original of ATF Form 
5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), 
as the case may be, with attachments (if any), to the appropriate ATF 
officer designated on the form, and retain the remaining copy, with any 
attached forms, for his files.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.269, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                        Receipt by Armed Services



Sec. 252.275  Receipt by armed services.

    When liquors which have been withdrawn or removed for export to the 
armed services of the United States are received at the supply base or 
other designated place of delivery, the officer to whom consigned, or 
other authorized supply officer, at the supply base or other place of 
delivery shall enter the quantity of liquors received on both copies of 
the application, notice, or claim, ATF Form 5100.11, 5110.30, 1582-A 
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be. After 
signing the form, he shall forward the original with attachments, if 
any, to the appropriate ATF officer designated

[[Page 44]]

on the form, and retain the other copy for his records.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]

                       Lading for Use on Aircraft



Sec. 252.280  Distilled spirits and wines.

    When an airline desires to withdraw distilled spirits or wines from 
its stock being held at the airport under customs custody, for use on a 
particular aircraft, a requisition in triplicate shall be prepared for 
presentation to the customs officer. The requisition shall show the 
flight number, the registry number of the aircraft on which the 
distilled spirits or wines are to be laden, the country for which the 
aircraft is to be cleared, the date of departure of the aircraft, and 
the brand, kind, and quantity of distilled spirits or wines. Where the 
distilled spirits or wines are contained in kits which have been 
previously prepared while under customs custody, the kit number shall 
also be shown on the requisition. Where the kits are not prepared and 
the distilled spirits or wines are withdrawn for direct lading on 
aircraft, the requisition shall be serially numbered in lieu of the 
insertion of the kit number. When the distilled spirits or wines are 
withdrawn and laden aboard the aircraft, the lading shall be verified by 
the customs officer by an appropriate stamp or notation on the 
requisition. One copy of the requisition shall be retained by the 
customs officer who certifies to the lading for attachment to the 
outgoing manifest. The other two copies shall be delivered to the 
airline which shall retain both copies until the return of the flight. 
In case any of the distilled spirits or wines are removed from the 
aircraft on its return, they shall be returned to customs custody, 
appropriate notation made on both copies of the requisition retained by 
the airline and one copy shall be delivered to the customs officer for 
attachment to the incoming manifest. The remaining copy shall be 
retained by the airline.

(Approved by the Office of Management and Budget under control number 
1512-0384)

(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26 
U.S.C. 5062, 5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984]



Sec. 252.281  Certificate of use for distilled spirits and wines.

    When all of the distilled spirits or wines represented by a single 
application, notice, or claim, ATF Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, have been withdrawn from customs custody 
and laden and used on aircraft, the airline shall prepare a certificate 
of use on which are itemized all the requisitions pertaining to such 
distilled spirits or wines. The certificate shall be executed under the 
penalties of perjury by an officer of the airline and shall show the 
name of the exporter, the entry number, the brand and kind of distilled 
spirits or wines, and the number of bottles to be accounted for; and, as 
to each requisition, the requisition (or kit) number, the date laden, 
the registry number of the aircraft, the country for which the aircraft 
was cleared, and the number of bottles used. When completed, the 
certificate shall be presented to the customs officer at the airport who 
shall then execute his certificate on both copies of the appropriate 
application, notice, or claim, ATF Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, noting thereon any exception, such as 
shortages or breakage. The customs officer shall then attach the 
certificate of use to the copy of the appropriate form and forward both 
copies of the form to the district director of customs.

(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26 
U.S.C. 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting 
Sec. 252.281, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

[[Page 45]]



Sec. 252.282  Beer.

    When beer has been laden on board the aircraft for use as supplies, 
the customs officer shall execute his certificate on both copies of the 
Form 1582-B (5130.6) or Form 1689 (5130.12), as the case may be, forward 
the original to the appropriate ATF officer designated on the form, and 
retain the copy for his files.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335; 19 U.S.C. 1309, 26 
U.S.C. 5053, 5055)

                Receipt in Manufacturing Bonded Warehouse



Sec. 252.285  Receipt in manufacturing bonded warehouse.

    On receipt of the distilled spirits or wines, the related ATF Form 
5100.11 (with any attachments), such inspection as is necessary will be 
made to establish that the shipment corresponds with its description on 
ATF Form 5100.11 (and any attachments) and customs Form 6001 will be 
prepared according to Sec. 252.291. Any discrepancy disclosed by the 
inspection and gauge will be noted on each copy of ATF Form 5100.11. 
When the shipment corresponds with the description of ATF Form 5100.11 
(and any attachments), the certificate of deposit will be executed on 
both copies of ATF Form 5100.11 and the original of ATF Form 5100.11 
(and any attachments) and the original of his customs Form 6001 will be 
forwarded to the appropriate ATF officer. The remaining copies shall be 
kept on file.

(Sec. 201. Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as amended 
(26 U.S.C. 5214, 5362))

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]

                   Receipt in Customs Bonded Warehouse



Sec. 252.286  Receipt in customs bonded warehouse.

    On receipt of the distilled spirits or wine and the related ATF Form 
5100.11 or 5110.30 as the case may be, the customs officer in charge of 
the customs bonded warehouse shall make such inspection as is necessary 
to establish to his satisfaction that the shipment corresponds with the 
description thereof on the appropriate form. The customs officer shall 
note on each copy of the Form 5100.11 or 5110.30, as the case may be, 
any deficiency in quantity or discrepancy between the merchandise 
inspected and that described on the form. Where the inspection discloses 
no loss, or where a loss is disclosed and there is no evidence to 
indicate fraud, the officer shall execute his certificate of deposit on 
both copies of the form, forward the original as required by the 
instructions on the form, and retain the remaining copy for his files.

(Sec. 3(a), Pub. L. 91-659, 84 Stat. 1965 (26 U.S.C. 5066); sec. 2, Pub. 
L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]

                      Receipt in Foreign-Trade Zone



Sec. 252.290  Receipt in foreign trade zone.

    On receipt at the zone, the shipment shall be inspected by the 
customs officer in charge of the zone who shall determine if the 
shipment agrees with the description thereof on the application, notice, 
or claim, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), 
or 1689 (5130.12), as the case may be. If the customs officer regauges 
spirits or wine in the course of his inspection, he shall prepare 
customs Form 6001 according to Sec. 252.291. The customs officer shall 
note on both copies of the ATF Form 5100.11, 5110.30, 1582-A (5120.24), 
1582-B (5130.6), or 1689 (5130.12), as the case may be any deficiency in 
quantity or discrepancy between the merchandise inspected or gauged and 
that described in the form. Where the inspection or gauge discloses no 
loss, or where a loss is disclosed by such inspection or gauge and there 
is no evidence to indicate fraud, the officer shall execute his 
certificate on both copies of the form covering the deposit, and forward 
to the appropriate ATF officer:
    (a) Original of the deposit from (with any attachments); and
    (b) Original of the officer's customs Form 6001, if any. The 
remaining copy of the deposit form (with any attachments), and the copy 
of any customs

[[Page 46]]

Form 6001, shall be retained by the customs officer for his files.

(48 Stat. 999, as amended (19 U.S.C. 81c); Sec. 201, Pub. L. 85-859, 72 
Stat. 1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 
5062, 5214, 5362))

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]

                              Customs Gauge



Sec. 252.291  Customs Form 6001.

    When spirits or wines are gauged as required in Secs. 252.264, 
252.285, or 252.290, the customs officer shall prepare in duplicate 
customs Form 6001 to show:
    (a) Date;
    (b) Name of exporter;
    (c) Serial number and designation of the related transaction form;
    (d) Kind of liquor (show whether alcohol, whiskey, brandy, rum, gin, 
vodka, wine, etc.);
    (e) Name and registry number of producer;
    (f) If gauged under Sec. 252.264, the location of the port;
    (g) If gauged under Sec. 252.285, the location and number of the 
manufacturing bonded warehouse;
    (h) If gauged under 252.290, the location and number of the foreign-
trade zone;
    (i) Kind and serial numbers or lot identification numbers of 
containers; and
    (j) For each container:
    (1) Proof of spirits, or percent of alcohol by volume in wine;
    (2) Proof gallons, if spirits;
    (3) Wine gallons, if wine; and
    (4) Variation from the last gauge (proof, percent of alcohol by 
volume or wine gallons).

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]

                          Alternate Procedures



Sec. 252.295  Exception for export of beer.

    The provisions of this subpart do not apply in the case of beer when 
the exporter or claimant obtains proof of exportation other than 
certification by the military or customs certification of lading and use 
under Sec. 252.43. Brewers and exporters shall prepare Forms 1582-B 
(5130.6) or 1689 (5130.12), as applicable, to cover exportation of beer, 
but customs or military certification on them is not required when other 
proof of exportation is used.

[LT.D.ATF-224, 51 FR 7700, Mar. 5, 1986]



                            Subpart O--Losses

                            Distilled Spirits



Sec. 252.301  Loss of distilled spirits in transit.

    The tax on distilled spirits withdrawn without payment of tax under 
this part and which are lost during transportation from the bonded 
premises of the distilled spirits plant from which withdrawn to (a) the 
port of export, (b) the manufacturing bonded warehouse, (c) the vessel 
or aircraft, (d) the foreign-trade zone, or (e) the customs bonded 
warehouse, as the case may be, may be remitted if evidence satisfactory 
to the appropriate ATF officer establishes that such distilled spirits 
have not been unlawfully diverted, or lost by theft with connivance, 
collusion, fraud, or negligence on the part of the exporter, owner, 
consignor, consignee, bailee, or carrier or the employees or agents of 
any of them: Provided, That such remission in the case of loss of 
distilled spirits by theft shall only be allowed to the extent that the 
claimant is not indemnified against or recompensed in respect of the tax 
for such loss.

(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.302  Notice to exporter.

    If, on examination of the ATF Form 5100.11 (and attached gauge 
reports, if any) received from the officer required to certify the same 
under the provisions of subpart N of this part, the appropriate ATF 
officer is of the opinion that the distilled spirits reported lost had 
been unlawfully diverted, or had been lost by theft, he will advise the 
exporter by letter:
    (a) Of the identity of the containers;
    (b) Of the amount of the loss;
    (c) Of the circumstances indicating diversion or theft;
    (d) That allowance of the loss will be subject to filing (1) proof 
that such loss is allowable under the provisions of 26

[[Page 47]]

U.S.C. 5008 (a) and (f), and (2) claim for remission of the tax on the 
spirits so lost; and
    (e) That action in respect of the loss will be withheld for a period 
of not more than 30 days to afford an opportunity to file such proof and 
claim.

In any case in which distilled spirits are lost during transportation, 
as described in Sec. 252.301, whether by theft or otherwise, the 
appropriate ATF officer may require the exporter to file a claim for 
relief in accordance with Sec. 252.303. When circumstances may warrant, 
extensions of additional time for submission of the proof and claim may 
be granted by the appropriate ATF officer. Where such proof and claim 
are not filed within the 30-day period, or such extensions as the 
appropriate ATF officer may grant, the tax on the distilled spirits 
diverted or lost will be assessed, or liability asserted against the 
bond covering the shipment, as the case may be.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 
FR 71726, Dec. 11, 1979]



Sec. 252.303  Filing of claims.

    Claims, for remission of tax on the distilled spirits under 
Sec. 252.301, shall be filed on Form 2635 (5620.8), in duplicate, and 
shall set forth the following:
    (a) Name, address, and capacity of the claimant;
    (b) Identification (including serial numbers, if any) and location 
of the container or containers from which the spirits were lost;
    (c) Quantity of spirits lost from each container, and the total 
quantity of spirits covered by the claim;
    (d) Total amount of tax for which the claim is filed;
    (e) The date, penal sum, and form number of the bond under which 
withdrawal and shipment were made;
    (f) Name, number, and address of the distilled spirits plant from 
which withdrawn without payment of tax;
    (g) Date of the loss (or, if not known, date of discovery), the 
cause thereof, and all the facts relative thereto;
    (h) Name of the carrier;
    (i) If lost by theft, facts establishing that the loss did not occur 
as the result of any connivance, collusion, fraud, or negligence on the 
part of the exporter, owner, consignor, consignee, bailee, or carrier, 
or the employees or agents of any of them;
    (j) In the case of a loss by theft, whether the claimant is 
indemnified or recompensed in respect of the tax on the spirits lost, 
and, if so, the amount and nature of such indemnity or recompense and 
the actual value of the spirits, less the tax.

The claim shall be executed by the exporter or his authorized agent 
under the penalties of perjury, and shall be supported (whenever 
possible) by affidavits of persons having personal knowledge of the 
loss. The appropriate ATF officer may require such further evidence as 
he deems necessary.

(68A Stat. 749, 72 Stat. 1323; 26 U.S.C. 6065, 5008)



Sec. 252.304  Action on claim.

    The appropriate ATF officer will allow or disallow claims filed 
under Sec. 252.303 in accordance with existing law and regulations. If 
the appropriate ATF officer finds that there has been a diversion or 
theft of the distilled spirits as the result of any connivance, 
collusion, fraud, or negligence on the part of the exporter, owner, 
consignor, consignee, bailee, or carrier, or the employees or agents of 
any of them, the tax on the distilled spirits diverted or lost by theft 
will be assessed, or liability asserted against the bond covering the 
shipment, as the case may be.

(68A Stat. 867, 72 Stat. 1323; 26 U.S.C. 7302, 5008)

                       Specially Denatured Spirits



Sec. 252.310  Loss of specially denatured spirits in transit.

    Losses of specially denatured spirits withdrawn free of tax under 
this part during transportation from the bonded premises of the 
distilled spirits plant from which withdrawn to (a) the port of export, 
or (b) the foreign-trade zone, as the case may be, may be allowed if 
evidence satisfactory to the appropriate ATF officer establishes that 
such specially denatured spirits have not been unlawfully diverted, or 
lost by

[[Page 48]]

theft as the result of any connivance, collusion, fraud, or negligence 
on the part of the exporter, owner, consignor, consignee, bailee, or 
carrier, or the employees or agents of any of them. The giving of notice 
to the exporter, filing claims for allowance of loss, and action on the 
claims shall be, insofar as applicable, in accordance with the procedure 
prescribed in Secs. 252.302 through 252.304.

                                  Wine



Sec. 252.315  Loss of wine in transit.

    The tax on wine withdrawn without payment of tax under this part and 
which is lost during transportation from the bonded wine cellar from 
which withdrawn to (a) the port of export, (b) the vessel or aircraft, 
(c) the foreign-trade zone, (d) the manufacturing bonded warehouse, or 
(e) the customs bonded warehouse, as the case may be, may be remitted if 
evidence satisfactory to the appropriate ATF officer establishes that 
such wine has not been unlawfully diverted, or lost by theft with 
connivance, collusion, fraud, or negligence on the part of the exporter, 
owner, consignor, consignee, bailee, or carrier or the employees or 
agents of any of them. However, the remission of tax on wine withdrawn 
without payment of tax under this part and which is lost while in 
transit may be allowed only to the extent that the claimant is not 
indemnified or recompensed for such tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382 (26 U.S.C. 5370, 5371))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]



Sec. 252.316  Notice to exporter.

    If, on examination of the ATF Form 5100.11 received from the officer 
required to certify the same under the provisions of subpart N, the 
appropriate ATF officer is of the opinion that wine reported lost had 
been unlawfully diverted, or had been lost by theft, he will advise the 
exporter by letter:
    (a) Of the identity of the containers;
    (b) Of the amount of the loss;
    (c) Of the circumstances indicating diversion or theft;
    (d) That allowance of the loss will be subject to filing (1) proof 
that such loss is allowable under the provisions of 26 U.S.C. 5370, and 
(2) claim for remission of the tax on the wine so lost; and
    (e) That action in respect of the loss will be withheld for a period 
of not more than 30 days to afford an opportunity to file such proof and 
claim.

In any case in which wines are lost during transportation, as described 
in Sec. 252.315, whether by theft or otherwise, the appropriate ATF 
officer may require the exporter to file a claim for relief in 
accordance with Sec. 252.317. Where circumstances may warrant, 
extensions of additional time for submission of the proof and claim may 
be granted by the appropriate ATF officer. Where such proof and claim 
are not filed within the 30-day period, or such extensions as the 
appropriate ATF officer may grant, the tax on the wine diverted or lost 
will be assessed, or liability asserted against the bond covering the 
shipment, as the case may be.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 
FR 71726, Dec. 11, 1979]



Sec. 252.317  Filing of claims.

    Claims, for remission of tax on the wine under Sec. 252.315, shall 
be filed on Form 2635 (5620.8), in duplicate, and shall set forth the 
following:
    (a) The name, address, and capacity of the claimant;
    (b) The name, registry number, and location of the bonded wine 
cellar from which the wine was withdrawn;
    (c) The date, penal sum, and form number of the bond under which 
withdrawal and shipment was made;
    (d) Identification (including serial numbers, if any) and location 
of the container or containers from which the wine was lost;
    (e) The quantity of wine lost from each container, and the total 
quantity of wine covered by the claim;
    (f) The total amount of tax for which the claim is filed;
    (g) The date of the loss (or, if not known, date of discovery), the 
cause thereof, and all the facts relative thereto;
    (h) Name of the carrier;

[[Page 49]]

    (i) If lost by theft, the facts establishing that the loss did not 
occur as the result of any connivance, collusion, fraud, or negligence 
on the part of the exporter, owner, consignor, consignee, bailee, or 
carrier, or the agents or employees of any of them; and
    (j) Whether the claimant is indemnified or recompensed in respect of 
the tax on the wine lost, and, if so, the amount and nature of such 
indemnity or recompense and the actual value of the wine, less the tax.

The claim shall be signed by the exporter or his authorized agent under 
the penalties of perjury, and shall be supported (whenever possible) by 
affidavits of persons having personal knowledge of the loss. The 
appropriate ATF officer may require such further evidence as he deems 
necessary.

(68A Stat. 749, 72 Stat. 1381, 1382; 26 U.S.C. 6065, 5370, 5371)



Sec. 252.318  Action on claim.

    Action on claims filed under Sec. 252.317 shall be, insofar as 
applicable, in accordance with the procedure prescribed in Sec. 252.304.

(72 Stat. 1381; 26 U.S.C. 5370)

                        Beer And Beer Concentrate



Sec. 252.320  Loss of beer and beer concentrate in transit.

    (a) Losses not requiring inspection. When, on receipt by the 
appropriate ATF officer of Form 1689 (5130.12) from the officer required 
to certify it under the provisions of subpart N of this part, it is 
disclosed that there has been a loss of beer or beer concentrate after 
removal from the brewery without payment of tax while in transit to the 
port of export, the vessel or aircraft, or the foreign-trade zone, and 
the report of the certifying officer shows that the loss was a normal 
one caused by casualty, leakage, or spillage, the appropriate ATF 
officer will allow the loss.
    (b) Losses requiring inspection. When it is disclosed that the loss 
of beer or beer concentrate is large or unusual, the appropriate ATF 
officer will conduct an investigation of the loss. When it is disclosed 
that the loss in transit has occurred by reason of casualty, leakage or 
spillage, credit for the loss will be allowed. When the investigation 
discloses evidence indicating that the loss resulted from theft or from 
fraud, the appropriate ATF officer will afford the brewer opportunity to 
submit a written explanation with respect to the causes of the loss 
before taking further action.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended, 
1335, as amended (26 U.S.C. 5051, 5053, 5056))

[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986]



Sec. 252.321  Tax assessed on loss not accounted for.

    The appropriate ATF officer shall make demand on the brewer for an 
amount equal to the tax which would be due on removal for consumption or 
sale, including penalties and interest, on; (a) The quantity of beer not 
satisfactorily accounted for, or (b) the quantity of beer used to 
produce the quantity of beer concentrate which is not satisfactorily 
accounted for.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5053))

[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986]



                       Subpart P--Action on Claims



Sec. 252.331  Claims supported by bond, Form 2738 (5110.68).

    On receipt of a claim for drawback of tax on distilled spirits or 
wines on which the tax has been determined, and of the evidence of 
exportation required by Sec. 252.40, or of lading for use on vessels or 
aircraft required by Sec. 252.41, or of deposit in a foreign-trade zone 
or of deposit of distilled spirits in a customs bonded warehouse, as 
required by Sec. 252.42, as the case may be, the appropriate ATF officer 
shall, if a good and sufficient bond has been filed as provided in 
Sec. 252.65, and the notice of removal has been properly completed, 
allow the claim in accordance with the rate of drawback established in 
respect of the particular spirits or wines on which claim is based and 
charge the amount allowed against the bond. On receipt of the original 
of the claim properly executed by the appropriate customs official or 
armed services officer, as required by this part, and, in the case of 
claims on Form 1582-A

[[Page 50]]

(5120.24), the certificate of tax determination, Form 2605 (5120.20), 
the appropriate ATF officer shall give appropriate credit to the bond.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as 
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec. 252.332  Claim against bond.

    When any claim supported by a bond has been allowed and changed 
against the bond under the provisions of Sec. 252.331, and the original 
of the claim properly executed by the appropriate customs official or 
armed services officer as required by this part is not received by the 
appropriate ATF officer within three months of the date the claim was 
allowed, or where the distilled spirits or wines are not otherwise 
accounted for in accordance with this part, the appropriate ATF officer 
shall advise the claimant of the facts, and notify him that unless the 
original of the claim, properly executed as required by this part, is 
received by the appropriate ATF officer within 30 days, a written demand 
will be made upon the principal and the surety for repayment to the 
United States of the full amount of the drawback, plus interest at the 
rate prescribed by law from the time the drawback was paid. However, the 
appropriate ATF officer may, if in his opinion the circumstances warrant 
it, grant the claimant any additional extension of time beyond 30 days 
as may be necessary to accomplish the required filing.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336 as amended, (26 U.S.C. 5062))

[T.D. ATF-70, 45 FR 33981, May 21, 1980]



Sec. 252.333  Where no bond is filed.

    Where a claim for drawback of tax on distilled spirits or wines on 
ATF Form 5110.30 or 1582-A (5120.24), is not supported by a bond on Form 
2738 (5110.68), and in all cases where claim for drawback of tax on beer 
is made on Form 1582-B (5130.6), the appropriate ATF officer shall, on 
receipt by him of the original of the claim properly executed by the 
appropriate customs official or armed services officer, as required by 
this part, examine the claim to determine that it has been properly 
completed. He shall then, on receipt of the evidence of exportation 
required by Sec. 252.40, or of lading for use on vessels or aircraft 
required by Sec. 252.41, or of deposit in a foreign-trade zone or a 
customs bonded warehouse as required by Sec. 252.42, as the case may be, 
and, in the case of claims on Form 1582-A (5120.24), the certificate of 
tax determination, Form 2605 (5120.20), allow the claim in the amount of 
the tax paid on the beer or the tax paid or determined on the distilled 
spirits or wines on which the claim is based and which were exported, 
laden as supplies on vessels or aircraft, or deposited in a foreign-
trade zone or a customs bonded warehouse, as the case may be.

(46 Stat. 690, 691, as amended, 48 Stat. 999, as amended, 72 Stat. 1335, 
1336, 84 Stat. 1965; 19 U.S.C. 1309, 1311, 81c, 26 U.S.C. 5055, 5062, 
5066)

[T.D. 7112, 36 FR 8584, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]



Sec. 252.334  Credit allowance.

    Where the credit relates to internal revenue taxes on beer that have 
been determined but not yet paid by the claimant, the appropriate ATF 
officer will notify the claimant in writing. Where the credit relates to 
tax determined distilled spirits, procedure for taking the credit shall 
be in accordance with the procedures set forth in part 19 of this 
chapter. Where the credit relates to tax-determined wines, procedure for 
taking the credit shall be in accordance with the procedures set forth 
in part 24 of this chapter. No credit may be given for drawback of the 
tax on beer nor may one class of tax be credited to another.

(72 Stat. 1336; 26 U.S.C. 5062)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]

[[Page 51]]



Sec. 252.335  Disallowance of claim.

    If a claim for drawback of tax is not allowed in full, the 
appropriate ATF officer shall notify the claimant in writing of the 
reasons for any disallowance.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335, 
1336; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055, 5062)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]



PART 275--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES--Table of Contents




                     Subpart A--Scope of Regulations

Sec.
275.1  Importation of tobacco products and cigarette papers and tubes.

                         Subpart B--Definitions

275.11  Meaning of terms.

                           Subpart C--General

275.21  Forms prescribed.
275.22  Retention of records.
275.23  Authority of ATF officers to enter premises.
275.24  Interference with administration.
275.25  Disposal of forfeited, condemned, and abandoned tobacco products 
          and cigarette papers and tubes.
275.26  Alternate methods or procedures.
275.27  Emergency variations from requirements.
275.28  Penalties and forfeitures.
275.29  Delegations of the Director.

                            Subpart D--Taxes

                                Tax Rates

275.30  Pipe tobacco and roll-your-own tobacco.
275.31  Cigar tax rates.
275.32  Cigarette tax rates.
275.33  Smokeless tobacco tax rates.
275.34  Cigarette papers.
275.35  Cigarette tubes.

              Classification of Large Cigars and Cigarettes

275.37  Statistical classification of large cigars.
275.38  Cigarettes.
275.39  Determination of sale price of large cigars.

                   Liability for and Payment of Taxes

275.40  Persons liable for tax.
275.41  Determination and payment of tax.

                    Exemptions from Taxes and Permits

275.50  Exemptions.

                           Assessment of Taxes

275.60  Assessment.

                      Customs' Collection of Taxes

275.62  Customs' collection of internal revenue taxes on tobacco 
          products and cigarette papers and tubes, imported or brought 
          into the United States.
275.63  Payment of tax by electronic fund transfer.

                           Subpart E--Packages

275.71  Package.
275.72  Notice for smokeless tobacco.
275.72a  Notice for pipe tobacco.
275.72b  Notice for roll-your-own tobacco.
275.72c  Package use-up rule.
275.73  Notice for cigars.
275.74  Notice for cigarettes.
275.75  Exemptions.

  Subpart F--Tobacco Products and Cigarette Papers and Tubes, Imported 
                  Into or Returned to the United States

275.81  Taxpayment.

 Release From Customs Custody of Tobacco Products and Cigarette Papers 
            and Tubes Without Payment of Tax or Certain Duty

275.82  Restrictions on tobacco products labeled for export.
275.83  Penalties and forfeiture for products labeled or shipped for 
          export.
275.85  Release from customs custody of imported tobacco articles.
275.85a  Release from customs custody of returned articles.
275.86  Procedure for release.

Subpart G--Puerto Rican Tobacco Products and Cigarette Papers and Tubes, 
                     Brought Into the United States

275.101  General.

   Prepayment of Tax in Puerto Rico on Tobacco Products and Cigarette 
                            Papers and Tubes

275.105  Prepayment of tax.
275.106  Examination and record of shipment by taxpayer.
275.107-275.108  [Reserved]

       Deferred Payment of Tax in Puerto Rico on Tobacco Products

275.109  Bond required for deferred taxpayment.

[[Page 52]]

275.110  Record of tax computation and shipment by bonded manufacturer 
          under deferred taxpayment.
275.111  Agreement to pay tax.
275.112  Tax return.
275.113  Return periods.
275.114  Time for filing.
275.114a  Qualification for extended deferral.
275.115  Remittance with return.
275.115a  Payment of tax by electronic fund transfer.
275.116  Default.
275.117-275.118  [Reserved]
275.119  Corporate surety.
275.120  Deposit of securities in lieu of corporate surety.
275.121  Amount and account of bond.
275.122  Strengthening bond.
275.123  Superseding bond.
275.124  Extension of coverage of bond.
275.125  Approval of bond and extension of coverage of bond.
275.126  Termination of bond.
275.127  Application of surety for relief from bond.
275.128  Relief of surety from bond.
275.129  Release of pledged securities.
275.135-275.138  [Reserved]
275.139  Records.
275.140  Taxpayment in the United States.
275.141  Reports.

                          Subpart H [Reserved]

275.151-275.153  [Reserved]

                            Subpart I--Claims

                                 General

275.161  Abatement of assessment.
275.162  Losses caused by disaster occurring after September 2, 1958.
275.163  Refund of tax.

   Tobacco Products, and Cigarette Papers and Tubes Lost or Destroyed

275.165  Action by taxpayer.

   Tobacco Products and Cigarette Papers and Tubes Withdrawn From the 
                                 Market

275.170  Reduction of tobacco products to materials; ATF action.
275.171  Reduction of tobacco products to materials, action by regional 
          director (compliance).
275.172  Return to nontaxpaid status; action by taxpayer.
275.173  Return to nontaxpaid status; action by regional director 
          (compliance).
275.174  Disposition of tobacco products and cigarette papers and tubes, 
          and schedule.

                     Subpart J--Records and Reports

275.181  Records of large cigars.
275.182  Availability of records.
275.183  [Reserved]

                  Subpart K--Tobacco Products Importers

275.190  Persons required to qualify.
275.191  Application for permit.
275.192  Transitional rule.
275.193  Corporate documents.
275.194  Articles of partnership or association.
275.195  Trade name certificate.
275.196  Power of attorney.
275.197  Additional information.
275.198  Investigation of applicant.
275.199  Notice of contemplated disapproval.
275.200  Issuance of permit.
275.201  Duration of permit.
275.202  Renewal of permit.
275.203  Retention of permit and supporting documents.

                      Required Records and Reports

275.204  General.
275.205  Recordkeeping requirements.

               Filing and Retention of Records and Reports

275.206  Reports.
275.207  Filing.
275.208  Retention.

      Subpart L--Changes After Original Qualification of Importers

                             Changes in Name

275.220  Change in individual name.
275.221  Change in trade name.
275.222  Change in corporate name.

                    Changes in Ownership and Control

275.223  Fiduciary successor.
275.224  Transfer of ownership.
275.225  Change in officers, directors, or stockholders of a 
          corporation.
275.226  Change in control of a corporation.

                     Changes in Location or Address

275.227  Change in location.
275.228  Change in address.

    Authority: 18 U.S.C. 2342; 26 U.S.C. 5701, 5703, 5704, 5705, 5708, 
5712, 5713, 5721, 5722, 5723, 5741, 5754, 5761, 5762, 5763, 6301, 6302, 
6313, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 9301, 
9303, 9304, 9306.

    Editorial Note: Nomenclature changes to part 275 appear at T.D. ATF-
460, 66 FR 39093, July 27, 2001.



                     Subpart A--Scope of Regulations



Sec. 275.1  Importation of tobacco products and cigarette papers and tubes.

    This part contains regulations relating to tobacco products and 
cigarette

[[Page 53]]

papers and tubes imported into the United States from a foreign country 
or brought into the United States from Puerto Rico, the Virgin Islands, 
or a possession of the United States; the removal of tobacco products 
from a customs bonded manufacturing warehouse, class 6; restrictions on 
the importation of previously exported tobacco products and cigarette 
papers and tubes; and the release of tobacco products and cigarette 
papers and tubes from customs custody, without payment of internal 
revenue tax or customs duty attributable to the internal revenue tax.

[T.D. ATF-421, 64 FR 71924, Dec. 22, 1999]



                         Subpart B--Definitions



Sec. 275.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, the 
following terms shall have the meanings given in this section, unless 
the context clearly indicates otherwise. Words in the plural form shall 
include the singular, and vice versa, and words indicating the masculine 
gender shall include the feminine. The terms ``includes'' and 
``including'' do not exclude things not listed which are in the same 
general class.
    Appropriate ATF officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.16A, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Part 275, Importation of Tobacco Products and Cigarette Papers 
and Tubes and ATF Order 1130.15, Delegation Order--Delegation of Certain 
of the Director's Authorities in 27 CFR Parts 270, 275 and 296.
    Associate Director (Compliance Operations). The Associate Director 
(Compliance Operations) in the Bureau of Alcohol, Tobacco and Firearms, 
who is responsible to, and functions under the direction and supervision 
of, the Director.
    ATF. The Bureau of Alcohol, Tobacco and Firearms.
    ATF officer. An officer of the Bureau of Alcohol, Tobacco and 
Firearms (ATF) authorized to perform any function relating to the 
administration or enforcement of this part.
    Bank. Any commercial bank.
    Banking day. Any day during which a bank is open to the public for 
carrying on substantially all its banking functions.
    Business day. Any day, other than a Saturday, Sunday, or a legal 
holiday. (The term legal holiday includes all holidays in the District 
of Columbia and, in the case of bonded manufacturers in Puerto Rico, all 
legal holidays in the Commonwealth of Puerto Rico.)
    Bonded manufacturer. A manufacturer of tobacco products in Puerto 
Rico who has an approved bond, in accordance with the provisions of this 
part, authorizing him to defer the payment in Puerto Rico on the 
internal revenue tax imposed on such products by 26 U.S.C. 7652(a) as 
provided in this part.
    CFR. The Code of Federal Regulations.
    Chewing Tobacco. Any leaf tobacco that is not intended to be smoked.
    Chief, Puerto Rico Operations. The primary representative in Puerto 
Rico of the Bureau of Alcohol, Tobacco and Firearms.
    Cigar. Any roll of tobacco wrapped in leaf tobacco or in any 
substance containing tobacco (other than any roll of tobacco which is a 
cigarette within the meaning of paragraph (2) of the definition for 
cigarette).
    Cigarette. (1) Any roll of tobacco wrapped in paper or in any 
substance not containing tobacco, and
    (2) Any roll of tobacco wrapped in any substance containing tobacco 
which, because of its appearance, the type of tobacco used in the 
filler, or its packaging and labeling, is likely to be offered to, or 
purchased by, consumers as a cigarette described in paragraph (1) of 
this definition.
    Cigarette paper. Paper, or any other material except tobacco, 
prepared for use as a cigarette wrapper.
    Cigarette tube. Cigarette paper made into a hollow cylinder for use 
in making cigarettes.
    Commercial bank. A bank, whether or not a member of the Federal 
Reserve System, which has access to the Federal Reserve Communications 
System (FRCS) or Fedwire. The ``FRCS'' or

[[Page 54]]

``Fedwire'' is a communications network that allows Federal Reserve 
System member banks to effect a transfer of funds for their customers 
(or other commercial banks) to the Treasury Account at the Federal 
Reserve Bank in New York.
    Computation or computed. When used with respect to the tax on 
tobacco products of Puerto Rican manufacture, computation or computed 
shall mean that the bonded manufacturer has ascertained the quantity and 
kind (small cigars, large cigars, small cigarettes, large cigarettes, 
chewing tobacco, snuff, pipe tobacco, or roll-your-own tobacco) of 
tobacco products and the sale price of large cigars being shipped to the 
United States; that adequate bond has been posted to cover the payment, 
in Puerto Rico, of the tax on such products to be deferred under subpart 
G of this part; that the tax imposed on such products by 26 U.S.C. 
7652(a) has been calculated; that the bonded manufacturer has executed 
an agreement to pay the internal revenue tax which will become due with 
respect to such products, as provided in this part; and that an ATF 
officer has verified and executed a certification of such calculation.
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Determine. To establish enough information about taxable products at 
the time of removal to calculate the tax, specifically the quantity 
(pounds or number) and kind (for example, cigarettes, snuff, paper 
tubes). Where the tax rate depends on additional information (such as 
number of cigarette papers to a set before 1/1/2000 or sale price of 
large cigars), that information must also be established as part of tax 
determination.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of the Treasury, Washington, DC.
    District director. A district director of internal revenue.
    Electronic fund transfer or EFT. Any transfer of funds effected by a 
bonded manufacturer's commercial bank, either directly or through a 
correspondent banking relationship, via the Federal Reserve 
Communications System (FRCS) or Fedwire to the Treasury Account at the 
Federal Reserve Bank of New York.
    Export warehouse. A bonded internal revenue warehouse for the 
storage of tobacco products and cigarette papers and tubes, upon which 
the internal revenue tax has not been paid, for subsequent shipment to a 
foreign country, Puerto Rico, the Virgin Islands, or a possession of the 
United States, or for consumption beyond the jurisdiction of the 
internal revenue laws of the United States.
    Export warehouse proprietor. Any person who operates an export 
warehouse.
    Factory. The premises of a manufacturer of tobacco products or 
cigarette papers or tubes in which he carries on such business.
    Fiscal year. The period which begins October 1 and ends on the 
following September 30.
    HTS. The Harmonized Tariff Schedule of the United States, as 
published by the United States International Trade Commission.
    Importer. Any person in the United States to whom non-taxpaid 
tobacco products or cigarette papers or tubes manufactured in a foreign 
country, Puerto Rico, the Virgin Islands, or a possession of the United 
States are shipped or consigned; any person who removes cigars for sale 
or consumption in the United States from a Customs bonded manufacturing 
warehouse; and any person who smuggles or otherwise unlawfully brings 
tobacco products or cigarette papers or tubes into the United States.
    Large cigarettes. Cigarettes weighing more than three pounds per 
thousand.
    Large cigars. Cigars weighing more than three pounds per thousand.
    Manufacturer of cigarette papers and tubes. Any person who 
manufactures cigarette paper, or makes up cigarette paper into tubes, 
except for his own personal use or consumption.

[[Page 55]]

    Manufacturer of tobacco products. Any person who manufactures 
cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own 
tobacco but does not include:
    (1) A person who produces tobacco products solely for that person's 
own consumption or use; or
    (2) A proprietor of a Customs bonded manufacturing warehouse with 
respect to the operation of such warehouse.
    Package. The container in which tobacco products or cigarette papers 
or tubes are put up by the manufacturer or the importer for delivery to 
the consumer.
    Person. An individual, partnership, association, company, 
corporation, estate, or trust.
    Pipe tobacco. Any tobacco which because of its appearance, type, 
packaging, or labeling, is suitable for use and likely to be offered to, 
or purchased by, consumers as tobacco to be smoked in a pipe.
    Port Director of Customs. The director of any port or port of entry 
as defined in 19 CFR 101.1. A list of ports is set forth in 19 CFR 
101.3.
    Records. Statements, declarations, books, papers, correspondence, 
accounts, technical data, automated record storage devices (e.g., 
magnetic discs and tapes), computer programs necessary to retrieve 
information in a usable form, and other documents that:
    (1) Pertain to any importation of tobacco products or cigarette 
papers or tubes, or to the information contained in the documents 
required by law or regulation under the Tariff Act of 1930, as amended, 
in connection with the importation or shipment into the United states 
from Puerto Rico of merchandise; and
    (2) Are of the type normally kept in the ordinary course of 
business; and
    (3) Are sufficiently detailed to:
    (i) Establish the right to make the importation or shipment into the 
United States from Puerto Rico;
    (ii) Establish the correctness of any importation or shipment into 
the United States from Puerto Rico;
    (iii) Determine the liability of any person for duties and taxes 
due, or which may be due, to the United States;
    (iv) Determine the liability of any person for fines, penalties, and 
forfeitures; and
    (v) Determine whether the person has complied with the laws and 
regulations administered by ATF and the Customs Service, and any other 
documents required under laws or regulations administered by ATF and the 
Customs Service.
    Region. A Bureau of Alcohol, Tobacco and Firearms Region.
    Regional Director (compliance). The principal regional official 
responsible for administering regulations in this part.
    Relanding. Any tobacco products, cigarette papers or tubes, which 
have been labeled or shipped for exportation (including to Puerto Rico) 
as prescribed in this chapter, previously exported and returned within 
the jurisdiction of the United States.
    Removal or Remove. The removal of tobacco products or cigarette 
papers or tubes from the factory or release from internal revenue bond 
under 26 U.S.C. 5704, or release from customs custody, including 
conditional release in accordance with 19 CFR 141.0a(i), and shall also 
include the smuggling or other unlawful importation of such articles 
into the United States.
    Roll-your-own tobacco. Any tobacco which, because of its appearance, 
type, packaging, or labeling, is suitable for use and likely to be 
offered to, or purchased by, consumers as tobacco for making cigarettes.
    Sale price. The price for which large cigars are sold by the 
importer or manufacturer, determined in accordance with Sec. 275.39 and 
used for computation of the excise tax.
    Small cigarettes. Cigarettes weighing not more than three pounds per 
thousand.
    Small cigars. Cigars weighing not more than three pounds per 
thousand.
    Smokeless tobacco. Any chewing tobacco or snuff.
    Snuff. Any finely cut, ground, or powdered tobacco that is not 
intended to be smoked.
    This chapter. Chapter I, title 27, Code of Federal Regulations.
    Tobacco products. Cigars, cigarettes, smokeless tobacco, pipe 
tobacco, and roll-your-own tobacco.

[[Page 56]]

    Treasury Account. The Department of the Treasury's General Account 
at the Federal Reserve Bank of New York.
    United States. When used in a geographical sense shall include only 
the States and the District of Columbia.
    U.S.C. The United States Code.

(Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6301); 
June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))

[T.D. ATF-48, 43 FR 13554, Mar. 31, 1978; 44 FR 55855, Sept. 28, 1979, 
as amended by T.D. ATF-77, 46 FR 3009, Jan. 13, 1981; T.D. ATF-232, 51 
FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. 
ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-284, 54 FR 12190, Mar 24, 
1989; T.D. ATF-289, 54 FR 48840, Nov. 27, 1989; T.D. ATF-421, 64 FR 
71924, Dec. 22, 1999; T.D. ATF-424, 64 FR 71932, Dec. 22, 1999; T.D. 
ATF-420, 64 FR 71942, Dec. 22, 1999; T.D. ATF-422, 64 FR 71948, Dec. 22, 
1999; T.D. ATF-422c, 65 FR 63545, Oct. 24, 2000; T.D. ATF-444, 66 FR 
13850, Mar. 8, 2001; T.D. ATF-465, 66 FR 45618, Aug. 29, 2001; T.D. ATF-
467, 66 FR 49532, Sept. 28, 2001]



                           Subpart C--General



Sec. 275.21  Forms prescribed.

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

(5 US.C. 552(a) (80 Stat. 383, as amended)

[T.D. ATF-92, 46 FR 46922, Sept. 23, 1981, as amended by T.D. ATF-232, 
51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. 
ATF-372, 61 FR 20725, May 8, 1996]



Sec. 275.22  Retention of records.

    All records required to be kept under this part, including copies of 
claims and schedules, authorizations, notices of release, reports, and 
returns, shall be retained for three years following the close of the 
year in which filed or made, or in the case of an authorization, for 
three years following the close of the calendar year in which the 
operation under such authorization is concluded. Such records shall be 
made available for inspection by any ATF officer upon his request.

(72 Stat. 1423; 26 U.S.C. 5741)

[26 FR 8189, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 275.23  Authority of ATF officers to enter premises.

    Any ATF officer may enter in the daytime any premises where tobacco 
products or cigarette papers or tubes are produced or kept so far as it 
may be necessary for the purpose of examining such articles. When such 
premises are open at night, any ATF officer may enter them, while so 
open, in the performance of his official duties. The owner of such 
premises, or person having the superintendence of the same, who refuses 
to admit any ATF officer or permit him to examine such articles shall be 
liable to the penalties prescribed by law for the offense.

(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)

[T.D. 6871, 31 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



Sec. 275.24  Interference with administration.

    Whoever, corruptly or by force or threats of force, endeavors to 
hinder or obstruct the administration of this part, or endeavors to 
intimidate or impede any ATF officer acting in his official capacity, or 
forcibly rescues or attempts to rescue or causes to be rescued any 
property, after it has been duly seized for forfeiture to the United 
States in connection with a violation of the internal revenue laws, 
shall be liable to the penalties prescribed by law.

(68A Stat. 855; 26 U.S.C. 7212)

[26 FR 8189, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

[[Page 57]]



Sec. 275.25  Disposal of forfeited, condemned, and abandoned tobacco products and cigarette papers and tubes.

    When any Federal, State, or local officer having custody of 
forfeited, condemned, or abandoned tobacco products or cigarette papers 
or tubes, upon which the Federal tax has not been paid, is of the 
opinion that the sale thereof will not bring a price equal to the tax 
due and payable thereon, and the expenses incident to the sale thereof, 
he shall not sell, nor cause to be sold, such articles for consumption 
in the United States. Where the articles are not sold, the officer may 
deliver them to a Federal or State hospital or institution (if they are 
fit for consumption) or cause their destruction by burning completely or 
by rendering them unfit for consumption. Where such articles are sold, 
they shall not be released by the officer having custody thereof until 
they are properly packaged and taxpaid, which tax shall be considered as 
a portion of the sales price. Except where the tax is to be paid to the 
Port Directors of Customs or other authorized customs officer in 
accordance with Customs regulations (19 CFR part 127) on sales of 
articles by customs officers, the payment of tax on such articles must 
be evidenced by presentation, to the officer having custody of the 
articles, of a receipt from the appropriate ATF officer showing such 
payment. In the case of such articles held by or for the Federal 
Government, the sale thereof shall be subject to the applicable 
provisions of the Regulations of the General Services Administration, 
Title 1, Personal Property Management.

(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)

[T.D. 6871, 31 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-422, 64 FR 71948, Dec. 22, 
1999]



Sec. 275.26  Alternate methods or procedures.

    An importer, on specific approval by the Director as provided in 
this section, may use an alternate method or procedure in lieu of a 
method or procedure specifically prescribed in this part. The Director 
may approve an alternate method or procedure, subject to stated 
conditions, when he finds that--
    (a) Good cause has been shown for the use of the alternate method or 
procedure,
    (b) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure, and affords equivalent security to the revenue, and
    (c) The alternate method of procedure will not be contrary to any 
provision of law, and will not result in an increase in cost to the 
Government or hinder the effective administration of this part.

No alternate method or procedure relating to the giving of any bond or 
to the assessment, payment, or collection of tax, shall be authorized 
under this section. When an importer desires to employ an alternate 
method or procedure, he shall submit a written application to do so, in 
triplicate, to the regional director (compliance) for transmittal to the 
Director. The application shall specifically describe the proposed 
alternate method or procedure, and shall set forth the reasons therefor. 
Alternate methods or procedures shall not be employed until the 
application has been approved by the Director. The importer shall, 
during the period of authorization of an alternate method or procedure, 
comply with the terms of the approved application. Authorization for any 
alternate method or procedure may be withdrawn whenever in the judgment 
of the Director the revenue is jeopardized or the effective 
administration of this part is hindered. The importer shall retain, as 
part of his records, any authorization of the Director under this 
section.

[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 275.27  Emergency variations from requirements.

    The Director may approve methods of operation other than as 
specified in this part, where he finds that an emergency exists and the 
proposed variations from the specified requirements are necessary, and 
the proposed variations--

[[Page 58]]

    (a) Will afford the security and protection to the revenue intended 
by the prescribed specifications,
    (b) Will not hinder the effective administration of this part, and
    (c) Will not be contrary to any provision of law.

Variations from requirements granted under this section are conditioned 
on compliance with the procedures, conditions, and limitations set forth 
in the approval of the application. Failure to comply in good faith and 
with such procedures, conditions, and limitations shall automatically 
terminate the authority for such variations and the importer thereupon 
shall fully comply with the prescribed requirements of regulations from 
which the variations were authorized. Authority for any variations may 
be withdrawn whenever in the judgment of the Director the revenue is 
jeopardized or the effective administration of this part is hindered by 
the continuation of such variation. Where an importer desires to employ 
such variation, he shall submit a written application to do so, in 
triplicate, to the regional director (compliance) for transmittal to the 
Director. The application shall describe the proposed variations and set 
forth the reasons therefor. Variations shall not be employed until the 
application has been approved. The importer shall retain, as part of his 
records, any authorization of the Director under this section.

[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 275.28  Penalties and forfeitures.

    Anyone who fails to comply with the provisions of this part becomes 
liable to the civil and criminal penalties, and forfeitures, provided by 
law.

(72 Stat. 1425, 1426; 26 U.S.C. 5761, 5762, 5763)

[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 275.29  Delegations of the Director.

    The Director has general authority to take action on all matters 
under the regulations in this part 275. Some of the authorities in this 
part are redelegated to ``appropriate ATF officers''. The title of the 
appropriate ATF officer for each delegation is listed by section in ATF 
Order 1130.16A, Delegation Order--Delegation of Certain of the 
Director's Authorities in 27 CFR parts 270, 275, and 296. ATF delegation 
orders, such as ATF Order 1130.16A, are available from the ATF 
Distribution Center, PO Box 5950, Springfield, Virginia 22150-5190, or 
from the ATF web site (http://www.atf.treas.gov).

[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999, as amended by T.D. ATF-444, 
66 FR 13850, Mar. 8, 2001]



                            Subpart D--Taxes

                                Tax Rates



Sec. 275.30  Pipe tobacco and roll-your-own tobacco.

    Pipe tobacco and roll-your-own tobacco are taxed at the following 
rates under 26 U.S.C. 5701(f) and (g), respectively:

----------------------------------------------------------------------------------------------------------------
                                                  Tax rate per pound \1\ for removals during the years
                Product                -------------------------------------------------------------------------
                                             1993 to  1999            2000 and  2001          2002 and  after
----------------------------------------------------------------------------------------------------------------
Pipe tobacco..........................  $0.675                   $0.9567                  $1.0969
Roll-your-own tobacco.................  No tax                   0.9567                   1.0969
----------------------------------------------------------------------------------------------------------------
\1\ Prorate tax for fractions of a pound.


[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999]



Sec. 275.31  Cigar tax rates.

    (a) Cigars are taxed at the following rates under 26 U.S.C. 5701(a):

[[Page 59]]



----------------------------------------------------------------------------------------------------------------
                                                         Tax rate for removals during the years
                Product                -------------------------------------------------------------------------
                                             1993 to  1999            2000 and  2001          2002 and  after
----------------------------------------------------------------------------------------------------------------
Small cigars (per thousand)...........  $1.125                   $1.594                   $1.828
Large cigars \1\
    percentage of sale price..........  12.75%                   18.063%                  20.719%
    but not to exceed per thousand....  $30                      $42.50                   $48.75
----------------------------------------------------------------------------------------------------------------
\1\ For large cigars, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and
  the flat tax rate applies when the sale price is more than $235.294.

    (b) See Sec. 275.39 of this part for rules concerning determination 
of sale price of large cigars.
    (c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the 
provisions of this part which are removed but not intended for sale 
shall be taxed at the same rate as similar cigars removed for sale.

[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999]



Sec. 275.32  Cigarette tax rates.

    Cigarettes are taxed at the following rates under 26 U.S.C. 5701(b):

----------------------------------------------------------------------------------------------------------------
                                                   Tax rate per thousand for removals during the years
                Product                -------------------------------------------------------------------------
                                             1993 to  1999            2000 and  2001          2002 and  after
----------------------------------------------------------------------------------------------------------------
Small cigarettes......................  $12                      $17                      $19.50
Large cigarettes up to 6\1/2\ long.
Large cigarettes over 6\1/2\ long.                                       fraction thereof of the length of each as one cigarette.
----------------------------------------------------------------------------------------------------------------


[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]



Sec. 275.33  Smokeless tobacco tax rates.

    Smokeless tobacco products are taxed at the following rates under 26 
U.S.C. 5701(e):

------------------------------------------------------------------------
                                    Tax rate per pound \1\ for removals
                                              during the years
             Product              --------------------------------------
                                     1993 to      2000 or      2002 and
                                       1999         2001        after
------------------------------------------------------------------------
Snuff............................        $0.36        $0.51       $0.585
Chewing tobacco..................        $0.12        $0.17       $0.195
------------------------------------------------------------------------
\1\ Prorate tax for fractions of a pound.


[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]



Sec. 275.34  Cigarette papers.

    Cigarette papers are taxed at the following rates under 26 U.S.C. 
5701(c):

------------------------------------------------------------------------
                                    Tax rate for each 50 papers \1\ for
                                         removals during the years
             Product              --------------------------------------
                                     1993 to      2000 or      2002 and
                                     1999 \2\       2001        after
------------------------------------------------------------------------
Cigarette papers up to 6\1/2\ long....................
Cigarette papers over 6\1/2\ long....................   Use rates above, but count each 2\3/
                                     4\ inches, or fraction thereof, of
                                    the length of each as one cigarette
                                                   paper.
------------------------------------------------------------------------
\1\ Tax rate for less than 50 papers is the same. The tax is not
  prorated.
\2\ Before January 1, 2000, books or sets containing 25 papers or less
  were not taxable. On and after January 1, 2000, all cigarette papers
  are taxable.


[[Page 60]]


[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]



Sec. 275.35  Cigarette tubes.

    Cigarette tubes are taxed at the following rates under 26 U.S.C. 
5701(d):

------------------------------------------------------------------------
                                     Tax rate for each 50 tubes \1\ for
                                         removals during the years
             Product              --------------------------------------
                                     1993 to      2000 and     2002 and
                                       1999         2001        after
------------------------------------------------------------------------
Cigarette tubes up to 6\1/2\ long....................
Cigarette tubes over 6\1/2\ long....................   Use rates above, but count each 2\3/
                                     4\ inches, or fraction thereof, of
                                    the length of each as one cigarette
                                                   tube.
------------------------------------------------------------------------
\1\ Tax rate for less than 50 tubes is the same. The tax is not
  prorated.


[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]

              Classification of Large Cigars and Cigarettes



Sec. 275.37  Statistical classification of large cigars.

    Large cigars are divided into eight classes for statistical 
purposes, according to the wholesale price or sale price, as applicable. 
The eight classes are as follows:
    (a) Class A. Large cigars with a wholesale price or sale price, as 
applicable of not more than $33.00 per thousand,
    (b) Class B. Large cigars with a wholesale price or sale price, as 
applicable of more than $33.00 per thousand but not more than $51.00 per 
thousand,
    (c) Class C. Large cigars with a wholesale price or sale price, as 
applicable of more than $51.00 per thousand but not more than $66.00 per 
thousand,
    (d) Class D. Large cigars with a wholesale price or sale price, as 
applicable of more than $66.00 per thousand but not more than $105.00 
per thousand,
    (e) Class E. Large cigars with a wholesale price or sale price, as 
applicable of more than $105.00 per thousand but not more than $120.00 
per thousand,
    (f) Class F. Large cigars with a wholesale price or sale price, as 
applicable of more than $120.00 per thousand but not more than $154.00 
per thousand,
    (g) Class G. Large cigars with a wholesale price or sale price, as 
applicable of more than $154.00 per thousand but not more than $235.294 
per thousand, and
    (h) Class H. Large cigars with a wholesale price or sale price, as 
applicable of more than $235.294 per thousand.

[T.D. ATF-40, 42 FR 5003, Jan. 26, 1977; as amended by T.D. ATF-307, 55 
FR 52744, Dec. 21, 1990]



Sec. 275.38  Cigarettes.

    For internal revenue tax purposes, small cigarettes are designated 
Class A and large cigarettes are designated Class B.

(72 Stat. 1414; 26 U.S.C. 5701)

[26 FR 8191, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 275.39  Determination of sale price of large cigars.

    The tax imposed on large cigars is computed based on the sale price 
(the price for which the large cigars are sold by the importer or 
manufacturer). In addition to money, goods or services exchanged for 
cigars may be considered as part of the sale price. See Sec. 40.22(b) of 
this chapter for information on determining the sale price in special 
cases.

[T.D. ATF-420, 64 FR 71944, Dec. 22, 1999; T.D. ATF-422, 64 FR 71948, 
Dec. 22, 1999; T.D. ATF-422a, 65 FR 15058, Mar. 31, 2000; T.D. ATF-460, 
66 FR 39093, July 27, 2001]

                   Liability for and Payment of Taxes



Sec. 275.40  Persons liable for tax.

    The importer of tobacco products or cigarette papers and tubes will 
be liable for the internal revenue taxes imposed thereon by 26 U.S.C. 
5701 or 7652: Provided, That tobacco products or cigarette papers or 
tubes (other than those previously exported and returned) imported or 
brought into the United States, may be released from

[[Page 61]]

customs custody without payment of tax, for delivery to the proprietor 
of an export warehouse, to a manufacturer of tobacco products, or to a 
manufacturer of cigarette papers or tubes (except for tobacco products), 
if such articles are not put up in packages (see Sec. 275.11). Under 
these circumstances the transferee will become liable for the internal 
revenue tax on such articles upon release from customs custody and the 
importer will thereupon be relieved of the liability for such tax. If 
the transferee is also the importer, then the importer will not be 
relieved of the liability for such tax.

(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652); 
sec. 201, Pub. L. 85-859, Stat. 1417, as amended (26 U.S.C. 5703))

[T.D. ATF-422, 64 FR 71948, Dec. 22, 1999]



Sec. 275.41  Determination and payment of tax.

    Tobacco products and cigarette papers and tubes, imported or brought 
into the United States, on which internal revenue taxes are due and 
payable, must not be released from customs custody until such taxes have 
been determined and paid.

(68A Stat. 907, as amended, 72 Stat. 1417; 26 U.S.C. 7652, 5703)

[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]

                    Exemptions From Taxes and Permits



Sec. 275.50  Exemptions.

    The Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) 
and Customs Regulations, 19 CFR, chapter I, provide for certain 
exemptions from internal revenue taxes with respect to tobacco products 
and cigarette papers and tubes imported into the United States. These 
exemptions include, but are not limited to, certain importations in 
passengers' baggage, for use of crew members, and by foreign officials. 
Those persons importing tobacco products and cigarette papers or tubes 
as described in this section are not required to obtain a permit.

[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. 
ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-284, 54 FR 12190, Mar. 24, 
1989; T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]

                           Assessment of Taxes



Sec. 275.60  Assessment.

    Whenever any person required by law to pay internal revenue tax on 
tobacco products or cigarette papers or tubes fails to pay such tax, the 
tax shall be ascertained and assessed against such person, subject to 
the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall 
be in addition to the penalties imposed by law for failure to pay such 
tax when required. Except in cases where delay may jeopardize collection 
of the tax, or where the amount is nominal or the result of an evident 
mathematical error, no such assessment shall be made until and after 
notice has been afforded such person to show cause against assessment. 
The person will be allowed 45 days from the date of such notice to show 
cause, in writing, against such assessment.

(72 Stat. 1417; 26 U.S.C. 5703)

[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. 
ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 
1986]

                      Customs' Collection of Taxes



Sec. 275.62  Customs' collection of internal revenue taxes on tobacco products and cigarette papers and tubes, imported or brought into the United States.

    Internal revenue taxes on tobacco products and cigarette papers and 
tubes, imported or brought into the United States, which are to be paid 
to the Port Director of Customs or other authorized customs employee, in 
accordance with this part, must be collected, accounted for, and 
deposited as internal revenue collections by the Port Director of 
Customs, in accordance with customs procedures and regulations.

[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]



Sec. 275.63  Payment of tax by electronic fund transfer.

    (a) Each importer who was liable, during a calendar year, for a 
gross amount equal to or exceeding five million dollars in taxes on 
cigars, cigarettes, cigarette papers, and cigarette

[[Page 62]]

tubes combining tax liabilities incurred under this part and part 40 of 
this chapter, shall use a commercial bank in making payment by 
electronic fund transfer (EFT) of such taxes during the succeeding 
calendar year. Payment of such taxes by cash, check, or money order is 
not authorized for an importer who is required, by this section, to make 
remittances by EFT. For purposes of this section, the dollar amount of 
tax liability is defined as the gross tax liability on all taxable 
withdrawals and importations (including similar products brought into 
the United States from Puerto Rico or the Virgin Islands) during the 
calendar year, without regard to any drawbacks, credits, or refunds, for 
all premises from which such activities are conducted by the taxpayer.
    (b) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (c) For the purposes of this section, (1) electronic fund transfer 
or EFT means any transfer of funds, other than a transaction originated 
by check, draft, or similar paper instrument, which is initiated through 
an electronic terminal, telephonic instrument, or computer of magnetic 
tape, so as to order, instruct, or authorize a financial institution to 
either debit or credit an account, in accordance with procedures 
established by the U.S. Customs Service, and (2) electronic fund 
transfer or EFT does not have the meaning defined in Sec. 275.11 for use 
elswhere in this part.
    (d) An importer who is required by this section to make remittances 
by EFT, shall make the EFT remittance in accordance with the 
requirements of the U.S. Customs Service.

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
Sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))

[T.D. ATF-245, 52 FR 534, Jan. 7, 1987, as amended by T.D. ATF-384, 61 
FR 54095, Oct. 17, 1996]



                           Subpart E--Packages



Sec. 275.71  Package.

    All tobacco products, cigarette papers and tubes, except as provided 
in Sec. 275.75, shall, before removal subject to internal revenue tax, 
be put up in packages which shall be of such construction as will 
securely contain the articles therein and maintain the notice thereon as 
required by this subpart. No package of tobacco products or cigarette 
papers or tubes shall have contained in, attached to, or stamped, 
marked, written, or printed thereon (a) any certificate, coupon, or 
other device purporting to be or to represent a ticket, chance, share, 
or an interest in, or dependent on, the event of a lottery, (b) any 
indecent or immoral picture, print, or representation, or (c) any 
statement or indication that United States tax has been paid.

(72 Stat. 1422; 26 U.S.C. 5723)

[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



Sec. 275.72  Notice for smokeless tobacco.

    (a) Product designation. Every package of chewing tobacco or snuff 
shall, before removal subject to internal revenue tax, have adequately 
imprinted thereon, or on a label securely affixed thereto, the 
designation ``chewing tobacco'' or ``snuff.'' As an alternative, 
packages of chewing tobacco may be designated ``Tax Class C,'' and 
packages of snuff may be designated ``Tax Class M.''
    (b) Product weight. Every package of chewing tobacco or snuff shall, 
before removal subject to internal revenue

[[Page 63]]

tax, have adequately imprinted thereon, or on a label securely affixed 
thereto, a clear statement of the actual pounds and ounces of the 
product contained therein. As an alternative, the shipping cases 
containing packages of chewing tobacco or snuff may, before removal, 
have adequately imprinted thereon, or on a label securely affixed 
thereto, a clear statement, in pounds and ounces, of the total weight of 
the product, the tax class of the product, and the total number of the 
packages of product contained therein.

(Approved by the Office of Management and Budget under control number 
1512-0502)

(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))

[T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-446, 66 
FR 16602, Mar. 27, 2001]



Sec. 275.72a  Notice for pipe tobacco.

    (a) Product designation. Every package of pipe tobacco shall, before 
removal subject to internal revenue tax, have adequately imprinted 
thereon, or on a label securely fixed thereto, the designation ``pipe 
tobacco.'' As an alternative, packages of pipe tobacco may be designated 
``Tax Class L.''
    (b) Product weight. Every package of pipe tobacco shall, before 
removal subject to internal revenue tax, have adequately imprinted 
thereon, or on a label securely affixed thereto, a clear statement of 
the actual pounds and ounces of the product contained therein.

[T.D. ATF-289, 54 FR 48841, Nov. 27, 1989. Redesignated by T.D. ATF-381, 
61 FR 37004, July 16, 1996]



Sec. 275.72b  Notice for roll-your-own tobacco.

    (a) Product designation. Before removal subject to tax, roll-your-
own tobacco must have adequately imprinted on, or on a label securely 
affixed to, the package, the designation ``roll-your-own tobacco'' or 
``cigarette tobacco'' or ``Tax Class J.''
    (b) Product weight. Before removal subject to tax, roll-your-own 
tobacco must have a clear statement of the actual weight in pounds and 
ounces of the product in the package. This statement must be adequately 
imprinted on, or on a label securely affixed to, the package.

(Approved by the Office of Management and Budget under control number 
1512-0502)

[T.D. ATF-429, 65 FR 57547, Sept. 25, 2000]



Sec. 275.72c  Package use-up rule.

    (a) An importer must have used such packaging for roll-your-own 
tobacco before January 1, 2000.
    (b) An importer of roll-your-own tobacco may continue to place roll-
your-own tobacco in packages that do not meet the marking requirements 
of Sec. 275.72b(b) until April 1, 2000.
    (c) An importer of roll-your-own tobacco may continue to place roll-
your-own tobacco in packages that do not meet the requirements of 
Sec. 275.72b(a) until October 1, 2000.

[T.D. ATF-427, 65 FR 40051, June 29, 2000]



Sec. 275.73  Notice for cigars.

    Before removal subject to internal revenue tax, every package of 
cigars, except as provided in Sec. 275.75, shall have adequately 
imprinted on it, or on a label securely affixed to it--
    (a) The designation ``cigars'';
    (b) The quantity of cigars contained in the package; and
    (c) For small cigars, the classification of the product for tax 
purposes (i.e., either ``small'' or ``little'').

(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))

[T.D. ATF-80, 46 FR 18310, Mar. 24, 1981]



Sec. 275.74  Notice for cigarettes.

    Every package of cigarettes, except as provided in Sec. 275.75, 
shall, before removal subject to internal revenue tax, have adequately 
imprinted thereon, or on a label securely affixed thereto, the 
designation ``cigarettes'', the quantity of such product contained 
therein; and the classification for tax purposes, i.e., for small 
cigarettes either ``small'' or ``Class A'', and for large cigarettes, 
either ``large'' or ``Class B''.

(72 Stat. 1422; 26 U.S.C. 5723)

[26 FR 8192, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

[[Page 64]]



Sec. 275.75  Exemptions.

    The provisions of this subpart requiring that tobacco products and 
cigarette papers and tubes be put up in packages and that proper notice 
be placed on such packages shall not apply to imported tobacco products 
and cigarette papers and tubes authorized to be released from customs 
custody, without payment of internal revenue tax, pursuant to 
Sec. 275.50, and shall not apply to tobacco products imported in 
passengers' baggage, or by mail where the value does not exceed $250, 
where such products are solely for the personal consumption of the 
importer or for disposition as his bona fide gift.

(72 Stat. 1422; 26 U.S.C. 5723)

[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, as amended by T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



  Subpart F--Tobacco Products and Cigarette Papers and Tubes, Imported 
                  Into or Returned to the United States



Sec. 275.81  Taxpayment.

    (a) General. The provisions of this section apply to tobacco 
products, cigarette papers, and cigarette tubes upon which internal 
revenue tax is payable, and which are imported into the United States 
from a foreign country or are brought into the United States from Puerto 
Rico, the Virgin Islands, or a possession of the United States. For 
provisions relating to the importation of previously exported tobacco 
products and cigarette papers and tubes, see section 275.82.
    (b) Method of payment. Except in the case of articles imported or 
brought into the United States under Secs. 275.85 and 275.85a, the 
internal revenue tax must be determined and paid to the Port Director of 
Customs before the tobacco products, cigarette papers, or cigarette 
tubes are removed from customs custody. The tax must be paid on the 
basis of a return on the customs form or by authorized electronic 
transmission by which the tobacco products, cigarette papers, or 
cigarette tubes are duty and tax paid to Customs.
    (c) Required information. When tobacco products, cigarette papers, 
or cigarette tubes enter the United States for consumption, or when they 
are removed for consumption, the importer must include on the customs 
form or authorized electronic transmission the following internal 
revenue tax information.
    (1) For cigarette papers: For cigarette papers imported on or after 
January 1, 2000, the importer will show the total number of cigarette 
papers, the rate of tax, and the amount of tax due. For cigarette papers 
imported prior to January 1, 2000, the importer will show the number of 
books or sets, the number of papers in each book or set, the rate of 
tax, and the amount of tax due.
    (2) For cigarette tubes: The importer will show the number of tubes, 
the rate of tax, and the tax due.
    (3) For cigarettes: The importer will show whether the cigarettes 
are small (class A) or large (class B), the number of cigarettes, the 
rate of tax, and the tax due.
    (4) For cigars. The importer will show:
    (i) The number imported under each HTS item number;
    (ii) For large cigars with a sale price of not more than $235.294 
per thousand, the number and total sale price of such cigars;
    (iii) For large cigars with a sale price of more than $235.294 per 
thousand, the number of cigars;
    (iv) The applicable tax rate, as specified by Sec. 275.31; and
    (v) The tax due.
    (5) For smokeless tobacco: The importer will show whether the 
product is chewing tobacco or snuff, the number of pounds and ounces, 
the rate of tax and the tax due.
    (6) For pipe tobacco: The importer will show the designation ``pipe 
tobacco'' or ``Tax Class L,'' the number of pounds and ounces, the rate 
of tax and the tax due.
    (7) For roll-your-own tobacco: The importer will show the 
designation ``roll-your-own'' or ``Tax Class J'', the number of pounds 
and ounces, the rate of tax and the amount of tax due.
    (d) Exceptions. The provisions of this section shall not apply to:
    (1) Tobacco products, cigarette papers, or cigarette tubes released 
from customs custody and transferred in bond to a U.S. manufacturer of 
tobacco

[[Page 65]]

products or cigarette papers and tubes (see Secs. 275.85, 275.85a, or 
275.135);
    (2) Puerto Rican products on which the tax is prepaid or deferred 
(see subpart G); and
    (3) Tax payments of cigars from class 6, customs bonded 
manufacturing warehouses (see Sec. 275.151).

(68A Stat. 907, as amended (26 U.S.C. 7652); sec. 202, Pub. L. 85-859, 
72 Stat. 1417 (26 U.S.C. 5703))

[T.D. ATF-27, 41 FR 23951, June 14, 1976, as amended by T.D. ATF-40, 42 
FR 5005, Jan. 26, 1977; T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-246, 52 FR 669, Jan. 8, 
1987; T.D. ATF-284, 54 FR 12190, Mar. 24, 1989; T.D. ATF-289, 54 FR 
48841, Nov. 27, 1989; T.D. ATF-307, 55 FR 52744, Dec. 21, 1990: T.D. 
ATF-421, 64 FR 71924, Dec. 22, 1999; T.D. ATF-424, 64 FR 71932, Dec. 22, 
1999; T.D. ATF-420, 64 FR 71944, Dec. 22, 1999; T.D. ATF-422a, 65 FR 
15059, Mar. 21, 2000]

 Release From Customs Custody of Tobacco Products and Cigarette Papers 
            and Tubes Without Payment of Tax or Certain Duty



Sec. 275.82  Restrictions on tobacco products labeled for export.

    (a) The provisions of this section apply to tobacco products and 
cigarette papers and tubes manufactured in the United States and labeled 
for exportation under parts 44 and 270 of this chapter.
    (b) Articles described in paragraph (a) of this section may be 
transferred to or removed from the premises of a manufacturer or an 
export warehouse proprietor only if such articles are being transferred 
or removed without tax as provided in this part.
    (c) Articles described in paragraph (a) of this section may only be 
imported or brought into the United States, after their exportation, 
under the provisions of 26 U.S.C. 5704(d), by release from Customs 
custody for delivery to the original manufacturer of such tobacco 
products or cigarette papers or tubes or to the proprietor of an export 
warehouse authorized by such manufacturer to receive such articles. 
These products are transferred in bond and are released from Customs 
custody without payment of that part of the duty attributable to 
internal revenue tax.
    (d) Articles described in paragraph (a) of this section that are not 
put up in packages may be imported or brought into the United States 
under 26 U.S.C. 5704(c) by release from Customs custody without payment 
of tax for delivery to the original manufacturer of such articles. 
However, because such articles are also eligible for release under 26 
U.S.C. 5704(d), such articles will be treated as though released under 
section 5704(d), due to the penalty provisions in section 5761(c).
    (e) Articles described in paragraph (a) of this section may not be 
sold or held for sale for domestic consumption in the United States 
unless such articles are removed from their export packaging and 
repackaged by the original manufacturer into new packaging that does not 
contain an export label. The new packages, marks and notices must 
conform to the requirements of 27 CFR part 270.
    (f) The provisions of this section shall apply to articles labeled 
for export even if the packaging or the appearance of such packaging to 
the consumer of such articles has been modified or altered by a person 
other than the original manufacturer so as to remove or conceal or 
attempt to remove or conceal (including by placement of a sticker over) 
any export label.
    (g) For purposes of this section, an article is labeled for export 
or contains an export label if it bears the mark, label, or notice 
required by Sec. 44.185 of this chapter.
    (h) For purposes of this section, references to exportation shall be 
treated as including a reference to shipment to the Commonwealth of 
Puerto Rico.
    (i) The provisions of this section do not apply to any person who, 
when entering U.S. manufactured tobacco products labeled for export 
under parts 44 and 270 of this chapter, claims and is granted an 
exemption from duty and tax for such products under chapter 98 of the 
Harmonized Tariff Schedule of the United States. The quantity of tobacco 
products entered may not exceed the quantity limit imposed on such 
products under the applicable tariff provision. A traveler claiming an 
exemption under this subsection upon arrival at the border may 
voluntarily relinquish to the U. S. Customs Service

[[Page 66]]

at the time of entry any excess of such quantity without incurring the 
penalty under section Sec. 275.83.
    (j) For civil penalties and forfeiture provisions related to 
violations of this section, see Sec. 275.83. For a criminal penalty 
applicable to any violation of this section see 26 U.S.C. 5762(b).

[T.D. ATF-465, 66 FR 45618, Aug. 29, 2001]



Sec. 275.83  Penalties and forfeiture for products labeled or shipped for export.

    Except for the return of exported products that are specifically 
authorized under Sec. 275.82(b) and (c):
    (a) Every person who sells, relands, or receives within the 
jurisdiction of the United States any tobacco products or cigarette 
papers or tubes which have been labeled or shipped for exportation under 
parts 44 and 270 of this chapter;
    (b) Every person who sells or receives such relanded tobacco 
products or cigarette papers or tubes; and,
    (c) Every person who aids or abets in such selling, relanding, or 
receiving, shall, in addition to the tax and any other penalty provided 
for in title 26 U.S.C., be liable for a penalty equal to the greater of 
$1,000 or 5 times the amount of the tax imposed by title 26 U.S.C. All 
tobacco products and cigarette papers and tubes relanded within the 
jurisdiction of the United States shall be forfeited to the United 
States and destroyed. All vessels, vehicles and aircraft used in such 
relanding or in removing such products, papers, and tubes from the place 
where relanded, shall be forfeited to the United States.
    (d) The provisions of this section do not apply to any person who, 
when entering U.S. manufactured tobacco products labeled for export, 
claims and is granted an exemption from duty and tax for such products 
under chapter 98 of the Harmonized Tariff Schedule of the United States. 
The quantity of tobacco products entered may not exceed the quantity 
limit imposed on such products under the applicable tariff provision. A 
traveler claiming an exemption under this subsection upon arrival at the 
border may voluntarily relinquish to the U. S. Customs Service at the 
time of entry any excess of such quantity without incurring the penalty 
under this section.
    (e) For purposes of this section, references to exportation shall be 
treated as including a reference to shipment to the Commonwealth of 
Puerto Rico.

[T.D. ATF-465, 66 FR 45619, Aug. 29, 2001]



Sec. 275.85  Release from customs custody of imported tobacco articles.

    (a) The provisions of this section apply only to tobacco products, 
cigarette papers, and cigarettes tubes, which are not put up in 
packages, i.e., not placed by the manufacturer or importer in packages 
in which the products will be sold to consumers. Tobacco products 
manufactured in a foreign country, the Virgin Islands, or a possession 
of the United States may be released by the Port Director of Customs or 
authorized customs officer from customs custody, without payment of 
internal revenue tax, for transfer to the factory of any manufacturer of 
tobacco products under the internal revenue bond of the manufacturer to 
whom such articles are released. Cigarette papers and tubes manufactured 
in a foreign country, the Virgin Islands, or a possession of the United 
States may be released by the Port Director of Customs or authorized 
customs officer from customs custody, without payment of internal 
revenue tax, for transfer, under the internal revenue bond of the 
manufacturer to whom such articles are released, to the factory of a 
manufacturer of cigarette papers and tubes; or a manufacturer of tobacco 
products solely for use in the manufacture of cigarettes. Releases under 
this section must be in accordance with Sec. 275.86: Provided, however, 
that in the case of products exported from the Virgin Islands, in order 
for a manufacturer of tobacco products or a manufacturer of cigarette 
papers and tubes to remove such products from customs custody in the 
United States under the manufacturer's internal revenue bond without 
payment of internal revenue tax, the manufacturer must file an extension 
of coverage of the internal revenue bond on ATF Form 2105, and receive a 
notice of approval from the appropriate ATF officer. The extension of 
coverage must be executed by the principal and the surety and must be in 
the following form:


[[Page 67]]


    ``Whereas the purpose of this extension is to bind the obligors for 
the purpose of the tax imposed by 26 U.S.C. 7652(b), on tobacco products 
and tubes exported from the Virgin Islands and removed from customs 
custody in the United States without payment of internal revenue tax, 
for delivery to the principal on said bond.''
    ``Now, therefore, the said bond is further specifically conditioned 
that the principal named therein must pay all taxes imposed by 26 U.S.C. 
7652(b) plus penalties, if any, and interest, for which he may become 
liable with respect to these products exported from the Virgin Islands 
and removed from customs custody in the United States without payment of 
internal revenue tax thereon, and must comply with all provision of law 
and regulations with respect thereto.''

    (b) Articles received into the factory of a manufacturer under the 
provision of this section are subject to the provisions of part 40 of 
this chapter.

(72 Stat. 1418, as amended; 26 U.S.C. 5704)

[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]



Sec. 275.85a  Release from customs custody of returned articles.

    (a) Domestically produced tobacco products (classifiable under item 
9801.00.80 of the Harmonized Tariff Schedule of the United States, 19 
U.S.C. 1202) exported from and returned to the United States without 
change to the product or the shipping container may be released, under 
the bond of the manufacturer or export warehouse proprietor to whom such 
articles are released, from customs custody in the United States without 
payment of that part of the duty attributable to the internal revenue 
tax for delivery to the factory of any tobacco products manufacturer or 
to the permit premises of an export warehouse proprietor.
    (b) Domestically produced cigarette papers and tubes (classifiable 
under item 9801.00.80 of the Harmonized Tariff Schedule of the United 
States, 19 U.S.C. 1202) exported from and returned to the United States 
without change to the product or the shipping container may be released 
from customs custody in the United States without payment of that part 
of the duty attributable to the internal revenue tax for delivery, under 
the bond of the manufacturer to whom such articles are released, to the 
factory of:
    (1) A manufacturer of cigarette papers and tubes; or
    (2) A manufacturer of tobacco products solely for use in the 
manufacture of cigarettes.
    (c) Releases under this section must be in accordance with the 
procedures set forth in Sec. 275.86. Once released, the tobacco products 
and cigarette papers and tubes will be subject to the tax and all other 
provisions of 26 U.S.C. chapter 52, and, as applicable, subject to the 
provisions of the regulations in part 40 of this chapter as if they had 
not been exported or otherwise removed from internal revenue bond.

(72 Stat. 1418, as amended; 26 U.S.C. 5704)

[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]



Sec. 275.86  Procedure for release.

    (a) Every manufacturer of tobacco products and cigarette papers and 
tubes and every export warehouse proprietor who desires to obtain the 
release of tobacco products and cigarette papers and tubes from customs 
custody, without payment of internal revenue tax, under its internal 
revenue bond, as provided in Secs. 275.85 or 275.85a, must prepare a 
notice of release, Form 5200.11, in triplicate, and file the three 
copies of the form with the appropriate ATF officer. The appropriate ATF 
officer will not certify Form 5200.11 covering the release of tobacco 
products and cigarette papers and tubes unless the manufacturer is 
authorized, under part 40 of this chapter, to receive, without payment 
of tax, the kinds of articles set forth in the form.
    (b) Importers who are either manufacturers of tobacco products and 
cigarette papers and tubes or export warehouse proprietors, or their 
authorized agents, who request the release of tobacco products or 
cigarette papers and tubes from customs custody in the United States 
under this section, using customs electronic filing procedures, must not 
request such release until they have received the ATF Form 5200.11 
certified by the appropriate ATF officer. Once Customs releases the 
tobacco products or cigarette papers and tubes in accordance with 19 CFR 
Part 143, Customs Directives, and any other applicable instructions, the 
importer will send a copy of the ATF

[[Page 68]]

Form 5200.11 along with a copy of the electronic filing and customs 
release to the appropriate ATF officer at the address shown thereon. The 
importer will retain one copy of the ATF Form 5200.11 to meet ATF 
recordkeeping requirements and one copy to meet customs recordkeeping 
requirements.
    (c) Importers or their authorized agents requesting release of 
tobacco products or cigarette papers and tubes from customs custody in 
the United States under any other authorized procedure will submit all 
copies of the ATF Form 5200.11 to the appropriate customs officer along 
with their request for release. The customs officer will verify that the 
ATF Form 5200.11 has been certified by the appropriate ATF officer and 
return all copies to the importer or the importer's authorized 
representative.
    (d) Once Customs releases the tobacco products or cigarette papers 
and tubes in accordance with 19 CFR Part 143, Customs Directives, and 
any other applicable instructions, the importer will send a copy of the 
ATF Form 5200.11 along with a copy of the customs release to the 
appropriate ATF office at the address shown thereon. The importer will 
retain one copy of the ATF Form 5200.11 to meet ATF recordkeeping 
requirements and one copy to meet customs recordkeeping requirements.

(72 Stat. 1418, as amended, 1423, as amended; 26 U.S.C. 5704, 5741)

[T.D. ATF-422, 64 FR 71950, Dec. 22, 1999]



Subpart G--Puerto Rican Tobacco Products and Cigarette Papers and Tubes, 
                     Brought Into the United States



Sec. 275.101  General.

    (a) Tobacco products and cigarette papers and tubes manufactured in 
Puerto Rico which are brought into the United States and withdrawn for 
consumption or sale are subject to the tax imposed by 26 U.S.C. 7652(a), 
at the rates set forth in 26 U.S.C. 5701.
    (b) The excise taxes collected on tobacco products and cigarette 
papers and tubes manufactured in Puerto Rico are covered into the 
Treasury of Puerto Rico. Tobacco products and cigarette papers and tubes 
are considered as manufactured in Puerto Rico for purposes of 26 U.S.C. 
7652(a)(3) if the sum of the cost or value of the materials produced in 
Puerto Rico, plus the direct costs of processing operations performed in 
Puerto Rico, equals or exceeds 50 percent of the value of the product 
when it is brought into the United States.
    (c) The excise tax on tobacco products and cigarette papers and 
tubes of Puerto Rican manufacture may be prepaid in Puerto Rico prior to 
shipment of such articles to the United States in accordance with 
Sec. 275.105. In the case of tobacco products such tax may be paid in 
Puerto Rico on the basis of a semi-monthly return in accordance with the 
applicable provisions of this subpart.

(68A Stat. 907, as amended, 72 Stat. 1417, 1418, as amended (26 U.S.C. 
7652, 5703, 5704))

[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985, as amended by T.D. ATF-232, 
51 FR 28085, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. 
ATF-246, 52 FR 669, Jan. 8, 1987; T.D. ATF-422, 64 FR 71950, Dec. 22, 
1999]

   Prepayment of Tax in Puerto Rico on Tobacco products and Cigarette 
                            Papers and Tubes



Sec. 275.105  Prepayment of tax.

    To prepay, in Puerto Rico, the internal revenue tax imposed by 26 
U.S.C. 7652(a), on tobacco products and cigarette paper and tubes of 
Puerto Rican manufacture which are to be shipped to the United States, 
the shipper must file, or cause to be filed, a tax return, ATF Form 
5000.25, with full remittance of tax which will become due on such 
tobacco products and cigarette papers and tubes.

(Approved by the Office of Management and Budget under control number 
1512-0497)

[T.D. ATF-444, 66 FR 13850, Mar. 8, 2001]



Sec. 275.106  Examination and record of shipment by taxpayer.

    (a) Shipments other than noncommercial mail shipment. The taxpayer 
will ensure that the tax has been prepaid on the tobacco products and 
cigarette papers and tubes in each shipment. The taxpayer will identify 
the tobacco products or cigarette papers or tubes on the bill of lading 
or similar record

[[Page 69]]

to accompany the shipment with the following information:
    (1) The marks and numbers on shipping containers;
    (2) The number of containers;
    (3) The kind of taxable article and the rate of tax, as specified by 
275.30 through 275.35;
    (4) The number of small cigarettes, large cigarettes or small cigars 
to be shipped;
    (5) The number and total sale price of large cigars with a price of 
not more than $235.294 per thousand to be shipped;
    (6) The number of large cigars with a sale price of more than 
$235.294 per thousand to be shipped;
    (7) The pounds and ounces of chewing tobacco or snuff to be shipped;
    (8) The pounds and ounces of pipe tobacco or roll-your-own tobacco 
to be shipped;
    (9) The number of cigarette papers or tubes to be shipped;
    (10) The amount of the tax paid on such articles under the 
provisions of this subpart; and
    (11) The name and address of the consignee in the United States to 
whom such products are being shipped. The taxpayer will note such bills 
of lading or similar records to identify the particular ATF Form 5000.25 
on which taxes have been prepaid.
    (b) Noncommercial mail shipments. Noncommercial mail shipments of 
tobacco products and cigarette papers and tubes to the United States are 
exempt from the provisions of paragraph (a) of this section, except that 
the taxpayer will provide a copy of the ATF Form 5000.25 upon request of 
an appropriate ATF officer.

(Approved by the Office of Management and Budget under control number 
1512-0560)

[T.D. ATF-444, 66 FR 13850, Mar. 8, 2001]



Secs. 275.107-275.108  [Reserved]

       Deferred Payment of Tax in Puerto Rico on Tobacco Products



Sec. 275.109  Bond required for deferred taxpayment.

    Where a manufacturer of tobacco products in Puerto Rico desires to 
defer payment in Puerto Rico of the internal revenue tax imposed by 26 
U.S.C. 7652(a), on tobacco products of Puerto Rican manufacture coming 
into the United States, he shall file a bond, Form 2986, with the 
regional director (compliance), in accordance with the provisions of 
this subpart. Such bond shall be conditioned on the payment, at the time 
and in the manner prescribed in this subpart, of the full amount of tax 
computed under the provisions of this subpart with respect to tobacco 
products which are released for shipment to the United States on 
computation of tax. All taxes which are computed under the provisions of 
this subpart shall be chargeable against the bond, until such taxes are 
paid, as provided in Sec. 275.112. The bond shall show the location of 
the factory from which the tobacco products to which it relates are to 
be shipped.

[T.D. 6871, 31 FR 43, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. 
ATF-232, 51 FR 28085, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 
1986; T.D. ATF-251, 52 FR 19340, May 22, 1987]



Sec. 275.110  Record of tax computation and shipment by bonded manufacturer under deferred taxpayment.

    Where tobacco products or cigarette papers or tubes are to be 
shipped to the United States involving deferred taxpayment, the bonded 
manufacturer must calculate the tax from the information contained in 
the bill of lading or a similar record. The bonded manufacturer will 
identify each shipment on such record with the following information:
    (a) The marks and numbers on shipping containers;
    (b) The number of containers;
    (c) The kind of taxable article and the rate of tax as specified in 
275.30 through 275.35;
    (d) The number of small cigarettes, large cigarettes or small cigars 
to shipped;
    (e) The number and total sale price of large cigars with a price of 
not more than $235.294 per thousand to be shipped;
    (f) The number of large cigars with a sale price of more than 
$235.294 per thousand to be shipped;
    (g) The pounds and ounces of chewing tobacco or snuff to be shipped;

[[Page 70]]

    (h) The pounds and ounces of pipe tobacco or roll-your-own tobacco 
to be shipped;
    (i) The number of cigarette papers or tubes;
    (j) The amount of the tax to be paid on such articles under the 
provisions of this subpart; and
    (k) The name and address of the consignee in the United States to 
whom such products are being shipped. The date of completing such record 
will be treated as the date of computation of the tax. Tobacco products 
or cigarette papers or tubes may be shipped to the United States in 
accordance with the provisions of this section only after computation of 
the tax.

(Approved by the Office of Management and Budget under control number 
1512-0560)

[T.D. ATF-444, 66 FR 13851, Mar. 8, 2001]



Sec. 275.111  Agreement to Pay Tax.

    Upon shipment of tobacco products and cigarette papers or tubes the 
bonded manufacturer agrees:
    (a) To pay the tax on the shipment;
    (b) That there is no default in payment of tax chargeable against 
the manufacturer's bond on ATF Form 2986 (5210.12); and
    (c) That the amount of the manufacturer's bond is sufficient or in 
the maximum penal sum to cover the tax due on the shipment.

[T.D. ATF-444, 66 FR 13851, Mar. 8, 2001]



Sec. 275.112  Tax return.

    The internal revenue taxes imposed by 26 U.S.C. 7652(a), with 
respect to tobacco products manufactured in Puerto Rico and shipped to 
the United States on computation of tax under the provisions of this 
subpart shall be paid on the basis of a semimonthly tax return. The 
bonded manufacturer of such products shall prepare ATF Form 5000.25 in 
duplicate, and file the original with the Chief, Puerto Rico Operations, 
and maintain one copy for the file for each semimonthly return period. 
The bonded manufacturer shall execute the return, ATF Form 5000.25, 
under the penalties of perjury. He shall file a return for each return 
period at the time specified in Sec. 275.114, regardless of whether tax 
is due for that return period. However, where the Regional Director 
(compliance), Bureau of Alcohol, Tobacco and Firearms, Atlanta, GA, 
grants specific authorization, the bonded manufacturer need not file a 
tax return during the term of such authorization for any period in which 
tax liability was not incurred under the provisions of this subpart.

(Approved by the Office of Management and Budget under control number 
1512-0497)

[T.D. ATF-40, 42 FR 5006, Jan. 26, 1977, as amended by T.D. ATF-125, 48 
FR 2123, Jan. 18, 1983; T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 
1987; T.D. ATF-277, 53 FR 45269, Nov. 9, 1988]



Sec. 275.113  Return periods.

    Except as provided by Sec. 275.114, the periods to be covered in the 
semimonthly tax returns shall be from the 1st day through the 15th day 
of each month, and from the 16th day through the last day of each month.

[T.D. ATF-365, 60 FR 33675, June 28, 1995]



Sec. 275.114  Time for filing.

    (a) General rule. Semimonthly tax returns under this subpart shall 
be filed by the bonded manufacturer, for each return period, not later 
than the 14th day after the last day of the return period, except as 
provided by paragraph (b) of this section. The tax shall be paid in full 
by remittance at the time the return is filed as prescribed in 
Sec. 275.115 or Sec. 275.115a.
    (b) Special rule for taxes due for the month of September (effective 
after December 31, 1994). (1) The second semimonthly period for the 
month of September shall be divided into two payment periods, from the 
16th day through the 26th day, and from the 27th day through the 30th 
day. The bonded manufacturer shall file a return on Form 5000.25, and 
make remittance, for the period September 16-26, no later than September 
29. The bonded manufacturer shall file a return on Form 5000.25, and 
make remittance, for the period September 27-30, no later than October 
14.
    (2) Taxpayment not by electronic fund transfer. In the case of taxes 
not required to be remitted by electronic fund transfer as prescribed by 
Sec. 275.115a,

[[Page 71]]

the second semimonthly period of September shall be divided into two 
payment periods, from the 16th day through the 25th day, and the 26th 
day through the 30th day. The bonded manufacturer shall file a return on 
Form 5000.25, and make remittance, for the period September 16-25, no 
later than September 28. The bonded manufacturer shall file a return on 
Form 5000.25, and make remittance, for the period September 26-30, no 
later than October 14.
    (3) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (b)(1) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (b)(2) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax liability 
incurred for the semimonthly period beginning on September 1 and ending 
on September 15, and if any underpayment of tax is paid by October 14.
    (4) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (c) Postmark. If the return, and remittance as the case may be, are 
delivered by U.S. Mail to the office of the Chief, Puerto Rico 
Operations, the date of the official postmark of the U.S. Postal Service 
stamped on the cover in which the return, and remittance as the case may 
be, were mailed shall be treated as the date of delivery.
    (d) Weekends and holidays. Except as provided in paragraph (b)(4) of 
this section, if the due date falls on a Saturday, Sunday, or legal 
holiday, the return and remittance shall be due on the immediately 
preceding day which is not a Saturday, Sunday, or legal holiday.

(Approved by the Office of Management and Budget under control number 
1512-0467)

[T.D. ATF-246, 52 FR 669, Jan. 8, 1987, as amended by T.D. ATF-251, 52 
FR 19340, May 22, 1987; T.D. ATF-365, 60 FR 33675, June 28, 1995; T.D. 
ATF-444, 66 FR 13851, Mar. 8, 2001]



Sec. 275.114a  Qualification for extended deferral.

    Note: This section applies only to removals made before January 1, 
1983.
    (a) Bonded manufacturers with bonds executed before September 1, 
1973. Bonded manufacturers with bonds on Form 2936 executed before 
September 1, 1973, who desire to file returns under this subpart with 
benefit of the extended deferral permitted by Sec. 275.114 shall file 
with the regional director (compliance) an extension of coverage of bond 
on Form 2105. Such extension of coverage shall identify the particular 
bond to which it applies and shall contain a statement of purpose as 
follows:

    To continue in effect said bond (including all extensions or 
limitations of terms and conditions previously consented to and 
approved) notwithstanding that the time for payment of the tax may be 
deferred by the extended deferral period permitted by regulations in 27 
CFR 275.114.


If the bond on Form 2986 is in an amount insufficient to cover an 
extended deferral period, according to the requirements of Sec. 275.121, 
the bonded manufacturer must either file a new bond or file a 
strengthening bond to increase the total amount of the bonds then in 
force to a sufficient amount.
    (b) Bonded manufacturers with bonds executed after September 1, 
1973. Bonded manufacturers operating under original or superseding bonds 
executed after September 1, 1973, are automatically qualified for the 
extended deferral permitted by Sec. 275.114 (unless found in default as 
provided in Sec. 275.116). Such bonds must be executed in an amount 
sufficient to cover an extended deferral period, according to the 
requirements of Sec. 275.121.
    (c) Commencement of extended deferral. Bonded manufacturers may file 
returns with benefit of extended deferral only

[[Page 72]]

after the applicable bonds and extensions of coverage required by this 
section have been filed with and approved by the regional director 
(compliance).

(68A Stat. 847, as amended, 907, as amended; 26 U.S.C. 7101, 7652(a); 26 
U.S.C. 7805)

[T.D. ATF-5, 38 FR 19688, July 23, 1973. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; 
T.D. ATF-125, 48 FR 2123, Jan. 18, 1983; T.D. ATF-251, 52 FR 19340, May 
22, 1987]



Sec. 275.115  Remittance with return.

    Remittance of the full amount of internal revenue tax computed 
during the return period shall accompany the return, except as 
prescribed in Sec. 275.115a. Such remittance may be in any form the 
Chief, Puerto Rico Operations is authorized to accept under the 
provisions of Sec. 70.61 of this chapter (Payment by check or money 
order) and which is acceptable to that officer. In paying the tax, a 
fractional part of a cent shall be disregarded unless it amounts to one-
half cent or more, in which case it shall be increased to one cent.

(Aug. 16, 1954, Ch. 736, 68A Stat. 778 (26 U.S.C. 6313) Aug. 16, 1954, 
ch. 736, 68A Stat. 775 (26 U.S.C. 6301); June 29, 1956, ch. 462, 70 
Stat. 391 (26 U.S.C. 6301))

[26 FR 8195, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-77, 46 
FR 3009, Jan. 13, 1981; T.D. ATF-251, 52 FR 19340, May 22, 1987; T.D. 
ATF-301, 55 FR 47658, Nov. 14, 1990]



Sec. 275.115a  Payment of tax by electronic fund transfer.

    (a) General. (1) Each taxpayer who was liable, during a calendar 
year, for a gross amount equal to or exceeding five million dollars in 
taxes on tobacco products, cigarette papers, and cigarette tubes 
combining tax liabilities incurred under this part and part 40 of this 
chapter, shall use a commercial bank in making payment by electronic 
fund transfer (EFT) of taxes on tobacco products, cigarette papers, and 
cigarette tubes during the succeeding calendar year. Payment of taxes on 
tobacco products, cigarette papers, and cigarette tubes by cash, check, 
or money order, as described in Sec. 275.115, is not authorized for a 
taxpayer who is required, by this section, to make remittances by EFT. 
For purposes of this section, the dollar amount of tax liability is 
defined as the gross tax liability of all taxes which are paid in 
accordance with this subpart, taxable withdrawals from premises in the 
United States, and importations during the calendar year, without regard 
to any drawbacks, credits, or refunds, for all premises from which such 
activities are conducted by the taxpayer. Overpayments are not taken 
into account in summarizing the gross tax liability.
    (2) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (3) A taxpayer who is required by this section to make remittances 
by EFT, shall make a separate EFT remittance and file a separate tax 
return for each factory which tobacco products, or cigarette papers, or 
cigarette tubes are withdrawn upon determination of tax.
    (b) Requirements. (1) On or before January 10 of each calendar year, 
except for a taxpayer already remitting the tax by EFT, each taxpayer 
who was liable for a gross amount equal to or exceeding five million 
dollars in taxes on tobacco products, cigarette papers, and cigarette 
tubes combining tax liabilities incurred under this part and part 40 of 
this chapter during the previous calender year, shall notify, in 
writing, the regional director (compliance), for each region in which 
taxes are paid. The notice shall be an agreement to make remittances by 
EFT.
    (2) For each return filed in accordance with this part, the taxpayer 
shall

[[Page 73]]

direct the taxpayer's bank to make an electronic fund transfer in the 
amount of the taxpayment to the Treasury Account as provided in 
paragraph (e) of this section. The request shall be made to the bank 
early enough for the transfer to be made to the Treasury Account by no 
later than the close of business on the last day for filing the return, 
prescribed in Sec. 275.105 or Sec. 275.114. The request shall take into 
account any time limit established by the bank.
    (3) If a taxpayer was liable for less than five million dollars in 
taxes on tobacco products, cigarette papers, and cigarette tubes during 
the preceding calendar year, the taxpayer may choose either to continue 
remitting the tax as provided in this section or to remit the tax with 
the return as prescribed by Sec. 275.115. On the first return on which 
the taxpayer chooses to discontinue remitting the tax by EFT and to 
begin remitting the tax with the tax return, the taxpayer shall notify 
the regional director (compliance) by attaching a written notification 
to the tax return, stating that no taxes are due by EFT, because the tax 
liability during the preceding calendar year was less than five million 
dollars, and that the remittance shall be filed with the tax return.
    (c) Remittance. (1) Each taxpayer shall show on the tax return, 
information about remitting the tax for that return by EFT and shall 
file the return with the Chief, Puerto Rico Operations.
    (2) Remittances shall be considered as made when the taxpayment by 
electronic fund transfer is received by the Treasury Account. For 
purposes of this section, a taxpayment by electronic fund transfer shall 
be considered as received by the Treasury Account when it is paid to a 
Federal Reserve Bank.
    (3) When the taxpayer directs the bank to effect an electronic fund 
transfer message as required by paragraph (b)(2) of this section, any 
transfer data record furnished to the taxpayer, through normal banking 
procedures, will serve as the record of payment, and shall be retained 
as part of required records.
    (d) Failure to make a taxpayment by EFT. The taxpayer is subject to 
a penalty imposed by 26 U.S.C. 5761, 6651, or 6656, as applicable, for 
failure to make a taxpayment by EFT on or before the close of business 
on the prescribed last day for filing.
    (e) Procedure. Upon the notification required under paragraph (b)(1) 
of this section, the appropriate ATF officer will issue to the taxpayer 
an ATF Procedure entitled, Payment of Tax by Electronic Fund Transfer. 
This publication outlines the procedure a taxpayer is to follow when 
preparing returns and EFT remittances in accordance with this part.

(Approved by the Office of Management and Budget under Control Number 
1512-0457)

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))

[T.D. ATF-185, 49 FR 37583, Sept. 25, 1984, as amended by T.D. ATF-232, 
51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. 
ATF-245, 52 FR 534, Jan. 7, 1987; T.D. ATF-251, 52 FR 19340, May 22, 
1987; T.D. ATF-262, 52 FR 47560, Dec. 15, 1987; T.D. ATF-277, 53 FR 
45269, Nov. 9, 1988; T.D. ATF-384, 61 FR 54095, Oct. 17, 1996; T.D. ATF-
422, 64 FR 71951, Dec. 22, 1999]



Sec. 275.116  Default.

    Where a check or money order tendered with a semimonthly return for 
payment of internal revenue tax under the provisions of this subpart is 
not paid on presentment, where a bonded manufacturer fails to remit with 
the semimonthly return the full amount of tax due thereunder, or where a 
bonded manufacturer is otherwise in default in payment of tax under the 
provisions of this subpart, he shall not ship tobacco products to the 
United States on computation of tax, until the regional director 
(compliance) finds that the revenue will not be jeopardized by deferred 
payment of tax under the provisions of this subpart.

[T.D. 6871, 31 FR 44, Jan 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 
1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-
243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987]



Secs. 275.117-275.118  [Reserved]



Sec. 275.119  Corporate surety.

    (a) Surety bonds, required under the provisions of this subpart, may 
be given only with corporate sureties holding certificates of authority 
from

[[Page 74]]

the Secretary of the Treasury as acceptable sureties on Federal bonds. 
Limitations concerning corporate sureties are prescribed by the 
Secretary in the current revision of Treasury Department Circular No. 
570 (Companies Holding Certificates of Authority as Acceptable Sureties 
on Federal Bonds and as Acceptable Reinsuring Companies). The surety 
shall have no interest whatever in the business covered by the bond.
    (b) Treasury Department Circular No. 570 is published in the Federal 
Register annually as of the first workday of July. As they occur, 
interim revisions of the circular are published in the Federal Register. 
Copies may be obtained from the Audit Staff, Bureau of Government 
Financial Operations, Department of the Treasury, Washington, DC 20226.

(July 30, 1947, ch. 390, 61 Stat. 648, as amended (6 U.S.C. 6, 7))

[T.D. ATF-92, 46 FR 46922, Sept. 23, 1981]



Sec. 275.120  Deposit of securities in lieu of corporate surety.

    In lieu of corporate surety, the manufacturer of tobacco products in 
Puerto Rico may pledge and deposit, as security for his bond, securities 
which are transferrable and are guaranteed both as to interest and as to 
principal by the United States, in accordance with the provisions of 31 
CFR part 225.

(61 Stat. 650; 6 U.S.C. 15)

[T.D. 6871, 31 FR 44, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



Sec. 275.121  Amount and Account of bond.

    (a) Bond amount. Except for the maximum and minimum amounts stated 
in this paragraph, the total amount of the bond or bonds for tobacco 
products or cigarette papers or tubes under the provisions of this 
subpart must be in an amount not less than the amount of unpaid tax 
chargeable at any one time against the bond. A manufacturer who will 
defer payment of tax for a shipment of tobacco products or cigarette 
papers or tubes under the provisions of this subpart must have 
sufficient credit in this account to cover the taxes prior to making the 
shipment to the United States. The maximum and minimum amounts of such 
bond or bonds are as follows:

------------------------------------------------------------------------
                                            Bond amount     Bond amount
             Taxable article                  maximum         minimum
------------------------------------------------------------------------
(1) Cigarettes..........................        $250,000          $1,000
(2) Any combination of taxable articles.         250,000           1,000
(3) One kind of taxable article other            150,000           1,000
 than cigarettes........................
------------------------------------------------------------------------

    (b) Bond Account. Where the amount of a bonded manufacturer's bond 
is less than the maximum amount prescribed in paragraph (a) of this 
section, a bonded manufacturer must maintain an account reflecting all 
outstanding taxes with which the manufacturer's bond is chargeable. A 
manufacturer must debit such account with the amount of tax that was 
agreed to be paid under Sec. 275.111 or is otherwise chargeable against 
such bond and then must credit the account for the amount paid on Form 
5000.25 or other ATF-prescribed document, at the time it is filed.

(Approved by the Office of Management and Budget under control number 
1512-0560)

[T.D. ATF-444, 66 FR 13851, Mar. 8, 2001]



Sec. 275.122  Strengthening bond.

    Where the amount of any bond is no longer sufficient under the 
provisions of Sec. 275.121, the bonded manufacturer shall immediately 
file a strengthening bond in an appropriate amount with the same surety 
as that on the bond already in effect, unless a superseding bond is 
filed pursuant to Sec. 275.123. A strengthening bond will not be 
approved where any notation is made thereon which is intended, or which 
may be construed, as a release of any former bond, or as limiting the 
amount of either bond to less than its full amount.

[26 FR 8195, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]

[[Page 75]]



Sec. 275.123  Superseding bond.

    A bonded manufacturer shall immediately file a new bond to supersede 
his current bond when (a) the corporate surety on the current bond 
becomes insolvent, (b) the regional director (compliance) approves a 
request from the surety on the current bond to terminate his liability 
under the bond, (c) the payment of any liability under a bond is made by 
the surety thereon, (d) the amount of the bond is no longer sufficient 
under the provisions of Sec. 275.121 and a strengthening bond has not 
been filed, or (e) the regional director (compliance) considers a 
superseding bond necessary for the protection of the revenue.

[26 FR 8195, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987]



Sec. 275.124  Extension of coverage of bond.

    An extension of coverage of the bond of a bonded manufacturer shall 
be required (a) as provided in Sec. 275.114a, and (b) in the case of any 
change in the location of the factory as set forth in the bond. Such 
extension of coverage of the bond shall be manifested on Form 2105 by 
the bonded manufacturer and by the surety on the bond with the same 
formality and proof of authority as required for the execution of the 
bond.

[T.D. ATF-5, 38 FR 19689, July 23, 1973. Redesignated at 40 FR 16835, 
Apr. 15, 1975]



Sec. 275.125  Approval of bond and extension of coverage of bond.

    The regional director (compliance) is authorized to approve all 
bonds and extensions of coverage of bonds (except under Sec. 275.136) 
filed under this subpart. No manufacturer of tobacco products in Puerto 
Rico shall defer taxes under this subpart until he receives from the 
regional director (compliance) notice of approval of the bond or of an 
appropriate extension of coverage of the bond required under this 
subpart. Upon receipt of the duplicate copy of an approved bond or 
extension of coverage of bond from the regional director (compliance), 
such copy of the bond or extension of coverage of bond shall be retained 
by the bonded manufacturer and shall be made available for inspection by 
any ATF officer upon his request.

[T.D. 6871, 31 FR 45, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 
1987]



Sec. 275.126  Termination of bond.

    Any bond given under the provisions of this subpart may be 
terminated as to future transactions, by the regional director 
(compliance), (a) pursuant to application of surety as provided in 
Sec. 275.127; (b) on approval of a superseding bond; (c) on notification 
by the bonded manufacturer to the regional director (compliance) that he 
has discontinued the deferral of taxes under the bond; or (d) on 
notification by the bonded manufacturer to the regional director 
(compliance) that he has discontinued business. When any bond is 
terminated, the regional director (compliance) shall notify both the 
bonded manufacturer and surety on such bond, in writing, of such action.

[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987]



Sec. 275.127  Application of surety for relief from bond.

    A surety on any bond given under the provisions of this subpart may 
at any time in writing notify the bonded manufacturer and the regional 
director (compliance) that he desires, after a date named, to be 
relieved of liability under said bond. Such date shall be not less than 
10 days after the date the notice is received by the regional director 
(compliance). The surety shall also file with the regional director 
(compliance) an acknowledgement or other proof of service on the bonded 
manufacturer. If such notice is not thereafter in writing withdrawn, the 
rights of the bonded manufacturer as supported by said bond shall be 
terminated on the date named in the notice, and the surety shall be 
relieved from liability to the extent set forth in Sec. 275.128.

[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987]

[[Page 76]]



Sec. 275.128  Relief of surety from bond.

    Where the surety on a bond given under the provisions of this 
subpart has filed application for relief from liability as provided in 
Sec. 275.127, the surety shall be relieved from liability for 
transactions occurring wholly subsequent to the date specified in the 
notice, or the effective date of a new bond, if one is given.

[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec. 275.129  Release of pledged securities.

    Securities of the United States, pledged and deposited as provided 
in Sec. 275.120, shall be released only in accordance with the 
provisions of 31 CFR part 225. Such securities will not be released by 
the regional director (compliance) until the liability under the bond 
for which they were pledged has been terminated. When the regional 
director (compliance) is satisfied that they may be released, he shall 
fix the date or dates on which a part or all of such securities may be 
released. At any time prior to the release of such securities, the 
regional director (compliance) may extend the date of release for such 
additional length of time as he deems necessary.

(61 Stat. 650; 6 U.S.C. 15)

[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987]



Secs. 275.135-275.138  [Reserved]



Sec. 275.139  Records.

    Every manufacturer of tobacco products and cigarette papers and 
tubes in the United States who receives tobacco products or cigarette 
papers or tubes or Puerto Rican manufacture, without payment of internal 
revenue tax, under his bond, shall keep separate records of all items 
received, removed subject to tax, removed for tax-exempt purposes, and 
otherwise disposed of, showing the following information:
    (a) Date, quantity, kind of cigars, cigarettes, smokeless tobacco, 
pipe tobacco and roll-your-own tobacco (number of small cigars--large 
cigars; number of small cigarettes--large cigarettes; pounds and ounces 
of chewing tobacco--snuff; pounds and ounces of pipe tobacco--roll-your-
own tobacco).
    (b) The sale price of large cigars removed subject to tax, except 
that if the price is more than $235.294 per thousand, it may be shown as 
if it were $236 per thousand.
    (c) Cigarette papers:
    (1) Before January 1, 2000, the date and number of books or sets of 
cigarette papers of each numerical content.
    (2) On and after January 1, 2000, the date and number of cigarette 
papers.
    (d) The date and number of cigarette tubes.

(Approved by the Office of Management and Budget under control number 
1512-0362)

(Sec. 2128(c), Pub. L. 94-455, 90 Stat. 1921 (26 U.S.C. 5741))

[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, as amended by T.D. ATF-172, 49 
FR 14943, Apr. 16, 1984; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. 
ATF-289, 54 FR 48841, Nov. 27, 1989; T.D. ATF-307, 55 FR 52745, Dec. 21, 
1990; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-420, 64 FR 
71944, Dec. 22, 1999]



Sec. 275.140  Taxpayment in the United States.

    Every manufacturer of tobacco products or cigarette papers or tubes 
in the United States who receives Puerto Rican tobacco products or 
cigarette papers or tubes without payment of internal revenue tax, under 
his bond, and subsequently removes such products, subject to tax, must 
pay the tax imposed on such products by 26 U.S.C. 7652(a), at the rates 
prescribed in 26 U.S.C. 5701, on the basis of a return under the 
provisions of part 40 of this chapter applicable to the taxpayment of 
tobacco products. Similarly, every manufacturer of cigarette papers and 
tubes in the United States who receives Puerto Rican cigarette papers 
and tubes and subsequently removes such articles, shall pay the tax 
imposed on such articles by 26 U.S.C. 7652(a), at the rates prescribed 
in 26 U.S.C. 5701, on the basis of a return under the provisions of part 
40 of this chapter applicable to taxpayment of cigarette papers and 
tubes. Such tobacco products and cigarettes papers and tubes shall be 
separately listed and identified as articles of Puerto Rican manufacture 
on Form 5000.24. The amount of tax paid

[[Page 77]]

on such articles shall be separately stated on Form 5000.24.

[T.D. 6871, 31 FR 45, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. 
ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 
1986; T.D. ATF-384, 61 FR 54095, Oct. 17, 1996; T.D. ATF-424, 64 FR 
71933, Dec. 22, 1999; T.D. ATF-422, 64 FR 71951, Dec. 22, 1999]



Sec. 275.141  Reports.

    Every manufacturer of tobacco products or cigarette papers or tubes 
in the United States who receives Puerto Rican tobacco products, or 
cigarette papers or tubes without payment of internal revenue tax, under 
his bond, must report the receipt and disposition of such tobacco 
products and cigarette papers and tubes on supplemental monthly reports. 
Such supplemental reports shall be made on Form 5210.5 or Form 2138 and 
shall have inserted thereon the heading, ``Cigars and Cigarettes of 
Puerto Rican Manufacture'' or ``Cigarette Papers and Tubes of Puerto 
Rican Manufacture,'' as the case may be. The original of such 
supplemental report shall be attached to the manufacturer's regular 
monthly report when filed.

(72 Stat. 1422; 26 U.S.C. 5722)

[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975; T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 
43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-
422, 64 FR 71951, Dec. 22, 1999]



                          Subpart H [Reserved]



Secs. 275.151-275.153  [Reserved]



                            Subpart I--Claims

                                 General



Sec. 275.161  Abatement of assessment.

    A claim for abatement of the unpaid portion of the assessment of any 
tax on tobacco products and cigarette papers and tubes, or any liability 
in respect thereof, may be allowed to the extent that such assessment is 
excessive in amount, is assessed after expiration of the applicable 
period of limitation, or is erroneously or illegally assessed. Any claim 
under this section shall be prepared on Form 2635 (5620.8), in 
duplicate, and shall set forth the particulars under which the claim is 
filed. The original of the claim, accompanied by such evidence as is 
necessary to establish to the satisfaction of the regional director 
(compliance) that the claim is valid, shall be filed with the regional 
director (compliance) for the region in which the tax or liability was 
assessed, and the duplicate of the claim shall be retained by the 
claimant.

(68A Stat. 792; 26 U.S.C. 6404)

[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 
1987]



Sec. 275.162  Losses caused by disaster occurring after September 2, 1958.

    Claims involving internal revenue tax paid or determined and customs 
duty paid on tobacco products and cigarette papers and tubes removed, 
which are lost, rendered unmarketable, or condemned by a duly authorized 
official by reason of a ``major disaster'' occurring in the United 
States after September 2, 1958, shall be filed in accordance with the 
provisions of subpart C of part 46 of this chapter.

(72 Stat. 1420; 26 U.S.C. 5708)

[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-457, 66 FR 32220, June 14, 
2001]



Sec. 275.163  Refund of tax.

    The taxes paid on tobacco products and cigarette papers and tubes 
imported or brought into the United States may be refunded (without 
interest) to the taxpayer on proof satisfactory to the regional director 
(compliance) that the taxpayer has paid the tax on tobacco products and 
cigarette papers and tubes lost (otherwise than by theft) or destroyed, 
by fire, casualty, or act of God, while in the possession or ownership 
of such taxpayer, or withdrawn by him from the market. Any claim for 
refund of tax under this section shall be prepared on Form 2635 
(5620.8), in duplicate, and shall include a statement that the tax 
imposed on tobacco products and cigarette papers

[[Page 78]]

and tubes by 26 U.S.C. 7652 or chapter 52, as applicable, has been paid 
in respect to the articles covered in the claim, and that the articles 
were lost, destroyed, or withdrawn from the market, within six months 
preceding the date the claim is filed and shall be executed under the 
penalties of perjury. A claim for refund relating to articles lost or 
destroyed shall be supported as prescribed in Sec. 275.165, and a claim 
relating to articles withdrawn from the market shall include a schedule 
prepared and verified as prescribed in Secs. 275.170 and 275.171 or 
Secs. 275.172 and 275.173. The original of the claim shall be filed with 
the regional director (compliance) for the region in which the tax was 
paid, or, where the tax was paid in more than one region, with the 
regional director (compliance) for any one of the regions in which the 
tax was paid. The duplicate of the claim, with the copy of any verified 
supporting schedules, shall be retained by the claimant.

(68A Stat. 907, as amended, 72 Stat. 1419, as amended; 26 U.S.C. 7652, 
5705)

[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. 
ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 
1986; T.D. ATF-251, 52 FR 19341, May 22, 1987]

    Tobacco Products and Cigarette Papers and Tubes Lost or Destroyed



Sec. 275.165  Action by taxpayer.

    Where tobacco products and cigarette papers and tubes which have 
been imported or brought into the United States are lost (otherwise than 
by theft) or destroyed, by fire, casualty, or act of God, and the 
taxpayer desires to file claim for refund of the tax on such articles, 
he shall, in addition to complying with the requirements of 
Sec. 275.163, indicate on the claim the nature, date, place, and extent 
of such loss or destruction. The claim shall be accompanied by such 
evidence as is necessary to establish to the satisfaction of the 
regional director (compliance) that the claim is valid.

(72 Stat. 1419, as amended; 26 U.S.C. 5705)

[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]

   Tobacco Products and Cigarette Papers and Tubes Withdrawn From the 
                                 Market



Sec. 275.170  Reduction of tobacco products to materials; ATF action.

    (a) General. Where tobacco products and cigarette papers and tubes 
which have been imported or brought into the United States are withdrawn 
from the market and the taxpayer desires to file claim for refund of the 
tax on the articles, he shall, in addition to the requirements of 
Sec. 275.163, assemble the articles at any suitable place, if they are 
to be destroyed or reduced to tobacco. The taxpayer shall group the 
articles according to the rates of tax applicable to the articles, and 
shall prepare a schedule of the articles on ATF Form 5200.7, in 
triplicate. All copies of the schedule shall be forwarded to the 
regional director (compliance) for the region in which the tobacco 
products and cigarette papers and tubes are assembled.
    (b) Large cigars. Refund or credit of tax on large cigars withdrawn 
from the market is limited to the lowest tax applicable to that brand 
and size of cigar during the required record retention period (see 
Sec. 275.22) except where the importer establishes that a greater amount 
was actually paid. For each claim involving large cigars withdrawn from 
the market, the importer must include a certification on either ATF Form 
5200.7 or ATF Form 2635 (5620.8) to read as follows:

    The amounts claimed relating to large cigars are based on the lowest 
sale price applicable to the cigars during the required record retention 
period, except where specific documentation is submitted with the

[[Page 79]]

claim to establish that any greater amount of tax claimed was actually 
paid.


(See 26 U.S.C. 5705)

[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, as amended by T.D. ATF-232, 51 
FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. 
ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-307, 55 FR 52745, Dec. 21, 
1990; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-420, 64 FR 
71944, Dec. 22, 1999]



Sec. 275.171  Reduction of tobacco products to materials, action by regional director (compliance).

    Upon receipt of a schedule of tobacco products and cigarette papers 
and tubes which have been imported or brought into the United States and 
which are withdrawn from the market by a taxpayer who desires to destroy 
such articles or, in the case of tobacco products, reduce them to 
tobacco, the regional director (compliance) may assign an ATF officer to 
verify the schedule and supervise destruction of the articles (and 
stamps, if any) or the reduction of tobacco products to tobacco, or the 
regional director (compliance) may authorize the taxpayer to destroy the 
articles (and stamps, if any) or reduce tobacco products to tobacco 
without supervision by so stating on the original and one copy of the 
schedule returned to the taxpayer.

(72 Stat. 1419, as amended; 26 U.S.C. 5705)

[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



Sec. 275.172  Return to nontaxpaid status, action by taxpayer.

    (a) General. Where tobacco products and cigarette papers and tubes 
which have been imported or brought into the United States are withdrawn 
from the market and the taxpayer desires to file a claim for refund of 
the tax on the articles and return them to a nontaxpaid status, he 
shall, in addition to the requirements of Sec. 275.163, assemble the 
articles in or adjacent to the factory in which the articles are to be 
retained or received in a nontaxpaid status. The taxpayer shall group 
the articles according to the rates of tax applicable to the articles, 
and shall prepare a schedule of the articles, on Form 5200.7, in 
triplicate. All copies of the schedule shall be forwarded to the 
regional director (compliance) for the region in which the tobacco 
products and cigarette papers and tubes are assembled.
    (b) Large cigars. Refund or credit of tax on large cigars withdrawn 
from the market is limited to the lowest tax applicable to that brand 
and size of cigar during the required record retention period (see 
Sec. 275.22) except where the importer establishes that a greater amount 
was actually paid. For each claim involving large cigars withdrawn from 
the market, the importer must include a certification on either ATF Form 
5200.7 or ATF Form 2635 (5620.8) to read as follows:

    The amounts claimed relating to large cigars are based on the lowest 
sale price applicable to the cigars during the required record retention 
period, except where specific documentation is submitted with the claim 
to establish that any greater amount of tax claimed was actually paid.


(See 26 U.S.C. 5705)

[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, and amended by T.D. ATF-232, 
51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. 
ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-307, 55 FR 52745, Dec. 21, 
1990; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-420, 64 FR 
71944, Dec. 22, 1999]



Sec. 275.173  Return to nontaxpaid status, action by regional director (compliance).

    Upon receipt of a schedule of tobacco products and cigarette papers 
and tubes which have been imported or brought into the United States and 
which are withdrawn from the market by a taxpayer who desires to return 
such articles to a nontaxpaid status, the regional director (compliance) 
may assign an ATF officer to verify the schedule and supervise 
disposition of the articles (and destruction of the stamps, if any) or 
the regional director (compliance) may authorize the receiving 
manufacturer to verify the schedule and disposition of the articles (and 
destruction of the stamps, if any) covered therein, without supervision, 
by so stating on the original and one copy of the schedule returned to 
the manufacturer. Where the receipt in a factory of tobacco products and 
cigarette papers and tubes has been verified, such

[[Page 80]]

articles shall be treated by the receiving manufacturer as nontaxpaid 
and shall be covered by the manufacturer's bond.

(72 Stat. 1419, as amended; 26 U.S.C. 5705)

[T.D. 6871, 31 FR 47, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



Sec. 275.174  Disposition of tobacco products and cigarette papers and tubes, and schedule.

    When an ATF officer is assigned to verify the schedule and supervise 
destruction or other disposition of tobacco products and cigarette 
papers and tubes which have been imported or brought into the United 
States, such officer shall, upon completion of his assignment, execute a 
certificate on all copies of the schedule to show the disposition and 
the date of disposition of such articles. The ATF officer shall return 
the original and one copy of the certified schedule to the taxpayer. 
When a taxpayer destroys such articles (and stamps, if any) or reduces 
tobacco products to materials, or a receiving manufacturer verifies the 
schedule and disposition of such articles (and stamps, if any), he shall 
execute a certificate on the original and the copy of the schedule 
returned to him, to show the disposition and the date of disposition of 
the articles. The taxpayer shall attach the original of the certified 
schedule to his claim for refund.

(72 Stat. 1419, as amended; 26 U.S.C. 5705)

[T.D. 6871, 31 FR 47, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. 
ATF-243, 51 FR 43194, Dec. 1, 1986]



                     Subpart J--Records and Reports

    Source: T.D. ATF-40, 42 FR 5007, Jan. 26, 1977, unless otherwise 
noted.



Sec. 275.181  Records of large cigars.

    Every person who imports large cigars for sale within the United 
States must keep such records as are necessary to establish and verify 
the sale price that applies to large cigars removed (entered or 
withdrawn).
    (a) Basic record. The importer must keep a record to show each sale 
price (as determined under Sec. 275.39), which is applicable to large 
cigars removed. No later than the tenth business day in January of each 
year the importer must prepare such a record to show the sale price in 
effect on the first day of that year for each brand and size of large 
cigars. The importer must note any change in a price from that shown in 
the record within ten business days after such change in price. The 
record must be a continuing one for each brand and size of cigar (and 
type of packaging, if pertinent), so that the taxable price on any date 
may be readily ascertained. If an importer removes new types of large 
cigars after the beginning of the year, the importer must enter the sale 
price and its effective date for such large cigars in the basic record 
within ten business days after such removal.
    (b) Copies of price announcements. The importer must keep a copy of 
each general announcement that is issued internally or to the trade 
about establishment or change of large cigar sale prices. If the copy 
does not show the actual date when issued it must be annotated to show 
this information.
    (c) Copies of entry and withdrawal forms. The importer must keep a 
copy of each customs entry or withdrawal form on which internal revenue 
tax for large cigars is declared pursuant to Sec. 275.81.
    (d) Alternative record. If an importer has so few import 
transactions and/or brands and sizes of large cigars that retention of 
an appropriate copy of each entry and withdrawal form required under 
paragraph (c) of this section will provide an adequate record of sale 
prices, then the record required under paragraph (a) of this section 
need not be kept. In such case the entry and withdrawal forms must 
identify the brands and sizes of cigars covered and show the 
corresponding quantity and sale price for each. If such information was 
not originally entered on the form it may be included by annotation. 
Whenever the appropriate ATF officer finds that alternative records 
being kept pursuant to this paragraph are inadequate for the intended 
purpose, he or she may so notify the importer in

[[Page 81]]

writing, after which time the importer must keep the record required 
under paragraph (a) of this section.

(Approved by the Office of Management and Budget under control number 
1512-0368)

[T.D. ATF-420, 64 FR 71944, Dec. 22, 1999]



Sec. 275.182  Availability of records.

    The records required under Sec. 275.181 shall be kept by the 
importer at his usual place of business unless otherwise authorized in 
writing by the regional director (compliance), and shall be made 
available for inspection by any ATF officer upon his request. (For 
retention period, see Sec. 275.22.)



Sec. 275.183  [Reserved]



                  Subpart K--Tobacco Products Importers

    Source: T.D. ATF-422, 64 FR 71951, Dec. 22, 1999, unless otherwise 
noted.



Sec. 275.190  Persons required to qualify.

    Any person who engages in the business as an importer of tobacco 
products must qualify as an importer of tobacco products in accordance 
with the provisions of this part. Any person eligible for the exemption 
in Sec. 275.50 is not engaged in the business as an importer of tobacco 
products.
    Persons importing tobacco products and cigarette papers and tubes 
for personal use, in such quantities as may be allowed by Customs 
without payment of tax, do not require an importer's permit.



Sec. 275.191  Application for permit.

    Except as provided in Sec. 275.192, every person, before commencing 
business as an importer of tobacco products as defined in Sec. 275.11, 
must make application for, and obtain, the permit provided by this 
subpart K. Such application must be made on ATF Form 5230.4, according 
to the instructions for the form. All documents required under this part 
to be furnished with such application must be made a part thereof.



Sec. 275.192  Transitional rule.

    Any person who--
    (a) Was engaged in the business as an importer of tobacco products 
before January 1, 2000, and
    (b) Who files an application with ATF before January 1, 2000, may 
continue to import tobacco products and cigarette papers and tubes 
pending action on their application by ATF. Pending such final action, 
all provisions of chapter 52 of the Internal Revenue Code of 1986 will 
apply to such applicant.



Sec. 275.193  Corporate documents.

    Every corporation, before commencing business as an importer of 
tobacco products, must furnish with its application for permit, required 
by Sec. 275.191, a true copy of the corporate charter or a certificate 
of corporate existence or incorporation executed by the appropriate 
officer of the State in which incorporated. The corporation must 
likewise furnish duly authenticated extracts of the stockholders' 
meetings, bylaws, or directors' meetings, listing the offices the 
incumbents of which are authorized to sign documents or otherwise act in 
behalf of the corporation in matters relating to 26 U.S.C. chapter 52, 
and regulations issued thereunder. The corporation must also furnish 
evidence, in duplicate, of the identity of the officers and directors 
and each person who holds more than ten percent of the stock of such 
corporation. Where any of the information required by this section has 
previously been filed with the appropriate ATF officer, and such 
information is currently complete and accurate, a written statement to 
that effect, in duplicate, will be sufficient for the purpose of this 
section.



Sec. 275.194  Articles of partnership or association.

    Every partnership or association, before commencing business as an 
importer of tobacco products, must furnish with its application for 
permit required by Sec. 275.191 a true copy of the articles of 
partnership or association, if any, or certificate of partnership or 
association where required to be filed by any State, county, or 
municipality. Where a partnership or association has previously filed 
such documents with the appropriate ATF officer and such documents are 
currently complete and

[[Page 82]]

accurate, a written statement, in duplicate, to that effect by the 
partnership or association will be sufficient for the purpose of this 
section.



Sec. 275.195  Trade name certificate.

    Every person, before commencing business under a trade name as an 
importer of tobacco products, must furnish with his application for a 
permit, required by Sec. 275.191, a true copy of the certificate or 
other document, if any, issued by a State, county, or municipal 
authority in connection with the transaction of business under such 
trade name. If no such true copy of the certificate or other document is 
so required, a written statement, in duplicate, to that effect by such 
person will be sufficient for the purpose of this section.



Sec. 275.196  Power of attorney.

    If the application for permit or any report, return, notice, 
schedule, or other document required to be executed is to be signed by 
an individual (including one of the partners for a partnership or one of 
the members of an association) as an attorney in fact for any person, or 
if an individual is to otherwise officially represent such person, power 
of attorney on Form 1534 must be furnished to the appropriate ATF 
officer. (For power of attorney in connection with conference and 
practice requirements see subpart E, part 70 of this chapter.) Such 
power of attorney is not required for persons whose authority is 
furnished with the corporate documents as required by Sec. 275.194. Form 
1534 does not have to be filed again with the appropriate ATF officer if 
such form has previously been submitted to ATF and is still in effect.



Sec. 275.197  Additional information.

    The appropriate ATF officer may require such additional information 
as may be deemed necessary to determine whether the applicant is 
entitled to a permit under the provisions of this part. The applicant 
must, when required by the appropriate ATF officer, furnish as a part of 
his application for such permit such additional information as the 
appropriate ATF officer deems necessary to determine whether the 
applicant is entitled to a permit.



Sec. 275.198  Investigation of applicant.

    Appropriate ATF officers may inquire or investigate to verify the 
information in connection with an application for a permit. The 
investigation will ascertain whether the applicant is, by reason of his 
business experience, financial standing, and trade connections, likely 
to maintain operations in compliance with 26 U.S.C. chapter 52, and 
regulations thereunder; whether the applicant has disclosed all material 
information required, or whether the applicant has made any material 
false statement in the application for such permit.



Sec. 275.199  Notice of contemplated disapproval.

    If the appropriate ATF officer has reason to believe that the 
applicant is not entitled to a permit, the appropriate ATF officer will 
promptly give to the applicant a notice of the contemplated disapproval 
of the application and opportunity for hearing thereon in accordance 
with part 71 of this chapter. If, after such notice and opportunity for 
hearing, the appropriate ATF officer finds that the applicant is not 
entitled to a permit, an order will be prepared stating the findings on 
which the permit request is denied.

[T.D. ATF-422, 64 FR 71951, Dec. 22, 1999, as amended by T.D. ATF-463, 
66 FR 42734, Aug. 15, 2001]



Sec. 275.200  Issuance of permit.

    If the application for permit, together with the required supporting 
documents, is approved, the appropriate ATF officer will issue a permit 
on ATF F 5200.24 to the applicant as an importer of tobacco products.



Sec. 275.201  Duration of permit.

    (a) Permits other than temporary permits issued under paragraph (b) 
of this section will be valid for a period of three years from the 
effective date shown on the permit, ATF F 5200.24.
    (b) Temporary permits will be issued for a one-year period to those 
applicants described in Sec. 275.192.



Sec. 275.202  Renewal of permit.

    Importers wishing to continue operations beyond the expiration of 
their

[[Page 83]]

current permit must renew their permit by making application within 30 
days of such expiration on ATF F 5200.24, in accordance with 
instructions for the form. The expiring permit will continue in effect 
until final action is taken by ATF on the application for renewal, 
provided a timely application for renewal is filed.



Sec. 275.203  Retention of permit and supporting documents.

    The importer must retain the permit, together with the copy of the 
application and supporting documents returned with the permit, at the 
same place where the records required by this part are kept. The permit 
and supporting documents must be made available for inspection by any 
appropriate ATF officer upon request.

                      Required Records and Reports



Sec. 275.204  General.

    Every tobacco products importer must keep such records and, when 
required by this part, submit such reports, of the physical receipt and 
disposition of tobacco products. Records and reports will not be 
required under this part with respect to tobacco products while in 
customs custody.



Sec. 275.205  Recordkeeping requirements.

    Any owner, importer, consignee, or their agent who imports, or 
knowingly causes to be imported, any tobacco product or cigarette papers 
or tubes must make and keep records. A person purchasing a tobacco 
product from the importer in a domestic transaction and who does not 
knowingly cause merchandise to be imported is not required to make and 
keep records unless:
    (a) The terms and conditions of the importation are controlled by 
the person placing the order with the importer (e.g., the importer is 
not an independent contractor but the agent of the person placing the 
order).
    (b) The tobacco products purchased from the importer include more 
than 60,000 cigarettes, in which case the importer and the person 
placing the order with the importer must keep the records required by 27 
CFR Part 46, Subpart F, Distribution of Cigarettes. Dividing a single 
shipment of more than 60,000 cigarettes into smaller components of 
60,000 cigarettes or less does not exempt any person from the 
recordkeeping requirements of this subpart.

[T.D. ATF-422, 64 FR 71951, Dec. 22, 1999, as amended by T.D. ATF-457, 
66 FR 32220, June 14, 2001]

               Filing and Retention of Records and Reports



Sec. 275.206  Reports.

    (a) Importers must file a monthly report on ATF F 5220.6 in 
accordance with the format and instructions for the form.
    (b) The first report(s) must be submitted by the 15th day of the 
month following the month in which the permit is issued; all previous 
months beginning January 1, 2000, must also be reported at that time.

For example:

    An importer who is issued a permit with a date of August 17, 2000, 
would be required to submit by September 15, 2000, a total of eight 
reports for the months January-August, 2000.

    (c) Reports with the notation ``No Activity'' must be made for those 
months in which no activity occurs.
    (d) When a transfer of ownership of the business of an importer of 
tobacco products described in Sec. 275.224, or when a change in control 
of a corporation described in Sec. 275.226 occurs, a concluding report 
with the notation ``Concluding Report'' must be made for the month or 
partial month during which the transfer of ownership or change in 
control becomes effective.



Sec. 275.207  Filing.

    All records and reports required by this part will be maintained 
separately, chronologically by transaction or reporting date, at the 
importer's place of business. The appropriate ATF officer may, pursuant 
to an application, authorize files, or an individual file, to be 
maintained at another business location under the control of the 
importer, if the alternative location does not cause undue inconvenience 
to ATF or Customs officers desiring to examine the files or delay in the 
timely transmittal of any documents required to be submitted.

[[Page 84]]



Sec. 275.208  Retention.

    (a) All records and reports required by this part, documents or 
copies of documents supporting these records or reports, and file copies 
of reports required by this part to be submitted to ATF must be retained 
for not less than three years following the close of the calendar year 
in which filed or made, and during this period must be available for 
inspection and copying by ATF during business hours.
    (b) Furthermore, the appropriate ATF officer may require these 
records to be kept for an additional period of not more than three years 
in any case where it is determined that such record retention is 
necessary to protect the revenue. Any records, or copies thereof, 
containing any of the information required by this part to be prepared, 
wherever kept, must also be made available for inspection and copying.



      Subpart L--Changes After Original Qualification of Importers

    Source: T.D. ATF-422, 64 FR 71953, Dec. 22, 1999, unless otherwise 
noted.

                             Changes in Name



Sec. 275.220  Change in individual name.

    Where there is a change in the name of an individual operating as an 
importer of tobacco products, the importer must make application on ATF 
Form 5230.5 for an amended permit within 30 days of such change.



Sec. 275.221  Change in trade name.

    Where there is a change in, or an addition or discontinuance of, a 
trade name used by an importer of tobacco products in connection with 
operations authorized by the permit, the importer must make application 
on ATF Form 5230.5 for an amended permit to reflect such change within 
30 days of such change. The importer must also furnish a true copy of 
any new trade name certificate or document issued to the business, or 
statement in lieu thereof, required by Sec. 275.195.



Sec. 275.222  Change in corporate name.

    Where there is a change in the corporate name of an importer of 
tobacco products, the importer must make application on ATF Form 5230.5 
for an amended permit within 30 days of such change. The importer must 
also furnish such documents as may be necessary to establish that the 
corporate name has been changed.

                    Changes in Ownership and Control



Sec. 275.223  Fiduciary successor.

    If an administrator, executor, receiver, trustee, assignee, or other 
fiduciary, is to take over the business of an importer of tobacco 
products, as a continuing operation, such fiduciary must make 
application for permit, before commencing operations as required by 
subpart K of this part, furnish certified copies, in duplicate, of the 
order of the court, or other pertinent documents, showing his 
appointment and qualification as such fiduciary. However, where a 
fiduciary intends only to liquidate the business, qualification as an 
importer of tobacco products will not be required if the fiduciary 
promptly files with the appropriate ATF officer a written statement to 
that effect.



Sec. 275.224  Transfer of ownership.

    If a transfer is to be made in ownership of the business of an 
importer of tobacco products (including a change of any member of a 
partnership or association), such importer must give notice, in writing, 
to the appropriate ATF officer, naming the proposed successor and the 
desired effective date of such transfer. The proposed successor must 
qualify as an importer of tobacco products, before commencing 
operations, in accordance with the applicable provisions of subpart K of 
this part. The importer must give such notice of transfer, and the 
proposed successor must make application for permit in ample time for 
examination and approval thereof before the desired date of such change. 
The predecessor must make a concluding report, in accordance with the 
provisions of Sec. 275.205, and surrender the permit with such report. 
The successor must make a commencing report, in accordance with the 
provisions of Sec. 275.206.

[[Page 85]]



Sec. 275.225  Change in officers, directors, or stockholders of a corporation.

    Upon election or appointment (excluding successive reelection or 
reappointment) of any officer or director of a corporation operating the 
business of an importer of tobacco products, or upon any occurrence 
which results in a person acquiring ownership or control of more than 
ten percent in aggregate of the outstanding stock of such corporation, 
the importer must, within 30 days of such action, so notify the 
appropriate ATF officer in writing, giving the identity of such person. 
In the event that the acquisition of ten or more percent in aggregate of 
the outstanding stock of such corporation results in a change of control 
of such corporation, the provisions of Sec. 275.226 will apply. When 
there is any change in the authority furnished under Sec. 275.196 for 
officers to act on behalf of the corporation the importer must 
immediately so notify the appropriate ATF officer in writing.



Sec. 275.226  Change in control of a corporation.

    Where the issuance, sale, or transfer of the stock of a corporation 
operating as an importer of tobacco products results in a change in the 
identity of the principal stockholders exercising actual or legal 
control of the operations of the corporation, the corporate importer 
must make application on ATF Form 5230.4 for a new permit within 30 days 
after the change occurs. Otherwise, the present permit will be 
automatically terminated at the expiration of such 30-day period, and 
the importer will dispose of all tobacco products on hand, in accordance 
with this part, make a concluding report, in accordance with the 
provisions of Sec. 275.206, and surrender his permit with such report. 
If the application for a new permit is timely made, the present permit 
will continue in effect pending final action with respect to such 
application.

                     Changes in Location or Address



Sec. 275.227  Change in location.

    Whenever an importer of tobacco products intends to relocate the 
principal business office, the importer must, before commencing 
operations at the new location, make application on ATF Form 5230.5 for, 
and obtain, an amended permit.



Sec. 275. 228  Change in address.

    Whenever any change occurs in the address, but not the location, of 
the principal business office of an importer of tobacco products, as a 
result of action of local authorities, the importer must make 
application on ATF Form 5230.5 for an amended permit within 30 days of 
such change.

                           PART 285 [RESERVED]

[[Page 87]]



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




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

                         SUBCHAPTER A [RESERVED]
                  SUBCHAPTER B--FIREARMS AND AMMUNITION
Part                                                                Page
447             Importation of arms, ammunition and 
                    implements of war.......................          88
478             Commerce in firearms and ammunition.........         101
479             Machine guns, destructive devices, and 
                    certain other firearms..................         169
                        SUBCHAPTER C--EXPLOSIVES
555             Commerce in Explosives......................         198
 SUBCHAPTER D--MISCELLANEOUS REGULATIONS RELATING TO ALCOHOL AND TOBACCO
646             Contraband cigarettes.......................         259

[[Page 88]]



                         SUBCHAPTER A [RESERVED]





                  SUBCHAPTER B--FIREARMS AND AMMUNITION





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




                            Subpart A--Scope

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

                         Subpart B--Definitions

447.11  Meaning of terms.

                Subpart C--The U.S. Munitions Import List

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

                         Subpart D--Registration

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

                           Subpart E--Permits

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

                   Subpart F--Miscellaneous Provisions

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

             Subpart G--Penalties, Seizures and Forfeitures

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

    Authority: 22 U.S.C. 2778.

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

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



                            Subpart A--Scope



Sec. 447.1  General.

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

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



Sec. 447.2  Relation to other laws and regulations.

    (a) All of those items on the U.S. Munitions Import List (see 
Sec. 447.21) which are ``firearms'' or ``ammunition'' as defined in 18 
U.S.C. 921(a) are subject to the interstate and foreign commerce 
controls contained in Chapter 44 of Title 18 U.S.C. and 27 CFR Part 478 
and if they are ``firearms'' within the definition set out in 26 U.S.C. 
5845(a) are also subject to the provisions of 27 CFR Part 479. Any 
person engaged in the business of importing firearms or ammunition as 
defined in 18 U.S.C. 921(a) must obtain a license under the provisions 
of 27 CFR Part 478, and if he imports firearms which fall within the

[[Page 89]]

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

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



                         Subpart B--Definitions



Sec. 447.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meanings ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words imparting the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude other 
things not enumerated which are in the same general class or are 
otherwise within the scope thereof.
    Appropriate ATF officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) specified by ATF Order 1130.34, 
Delegation of the Director's Authorities in 27 CFR Part 447, Importation 
of Arms, Ammunition and Implements of War.
    Article. Any of the arms, ammunition, and implements of war 
enumerated in the U.S. Munitions Import List.
    Bureau. Bureau of Alcohol, Tobacco and Firearms, the Department of 
the Treasury.
    Carbine. A short-barrelled rifle whose barrel is generally not 
longer than 22 inches and is characterized by light weight.
    CFR. The Code of Federal Regulations.
    Chemical agent. A substance useful in war which, by its ordinary and 
direct chemical action, produces a powerful physiological effect.
    Defense articles. Any item designated in Sec. 447.21 or Sec. 447.22. 
This term includes models, mockups, and other such items which reveal 
technical data directly relating to Sec. 447.21 or Sec. 447.22. For 
purposes of Category XXII, any item enumerated on the U.S. Munitions 
List (22 CFR Part 121).
    Defense services. (a) The furnishing of assistance, including 
training, to foreign persons in the design, engineering, development, 
production, processing, manufacture, use, operation, overhaul, repair, 
maintenance, modification, or reconstruction of defense articles, 
whether in the United States or abroad; or
    (b) The furnishing to foreign persons of any technical data, whether 
in the United States or abroad.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of the Treasury, Washington, DC 20226.
    Executed under the penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the application, form, or other document or, where no form of 
declaration is prescribed, with the declaration: ``I declare under the 
penalties of perjury that this ---- (insert type of document

[[Page 90]]

such as statement, certificate, application, or other document), 
including the documents submitted in support thereof, has been examined 
by me and, to best of my knowledge and belief, is true, correct, and 
complete.''
    Firearms. A weapon, and all components and parts therefor, not over 
.50 caliber which will or is designed to or may be readily converted to 
expel a projectile by the action of an explosive, but shall not include 
BB and pellet guns, and muzzle loading (black powder) firearms 
(including any firearm with a matchlock, flintlock, percussion cap, or 
similar type of ignition system) or firearms covered by Category I(a) 
established to have been manufactured in or before 1898.
    Import or importation. Bringing into the United States from a 
foreign country any of the articles on the Import List, but shall not 
include intransit, temporary import or temporary export transactions 
subject to Department of State controls under Title 22, Code of Federal 
Regulations.
    Import List. The list of articles contained in Sec. 447.21 and 
identified therein as ``The U.S. Munitions Import List''.
    Machinegun. A ``machinegun'', ``machine pistol'', ``submachinegun'', 
or ``automatic rifle'' is a firearm originally designed to fire, or 
capable of being fired fully automatically by a single pull of the 
trigger.
    Permit. The same as ``license'' for purposes of 22 U.S.C. 1934(c).
    Person. A partnership, company, association, or corporation, as well 
as a natural person.
    Pistol. A hand-operated firearm having a chamber integral with, or 
permanently aligned with, the bore.
    Revolver. A hand-operated firearm with a revolving cylinder 
containing chambers for individual cartridges.
    Rifle. A shoulder firearm discharging bullets through a rifled 
barrel at least 16 inches in length, including combination and drilling 
guns.
    Sporting type sight including optical. A telescopic sight suitable 
for daylight use on a rifle, shotgun, pistol, or revolver for hunting or 
target shooting.
    This chapter. Title 27, Code of Federal Regulations, Chapter II (27 
CFR Chapter II).
    United States. When used in the geographical sense, includes the 
several States, the Commonwealth of Puerto Rico, the insular possessions 
of the United States, the District of Columbia, and any territory over 
which the United States exercises any powers of administration, 
legislation, and jurisdiction.

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

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



                Subpart C--The U.S. Munitions Import List



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

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

                     The U.S. Munitions Import List

                          category i--firearms

    (a) Nonautomatic and semiautomatic firearms, to caliber .50 
inclusive, combat shotguns, and shotguns with barrels less than 18 
inches in length, and all components and parts for such firearms.
    (b) Automatic firearms and all components and parts for such 
firearms to caliber .50 inclusive.
    (c) Insurgency-counterinsurgency type firearms of other weapons 
having a special military application (e.g. close assault weapons 
systems) regardless of caliber and all components and parts for such 
firearms.
    (d) Firearms silencers and suppressors, including flash suppressors.
    (e) Riflescopes manufactured to military specifications and 
specifically designed or modified components therefor.
    Note: Rifles, carbines, revolvers, and pistols, to caliber .50 
inclusive, combat shotguns, and shotguns with barrels less than 18 
inches in length are included under Category I(a). Machineguns, 
submachineguns, machine

[[Page 91]]

pistols and fully automatic rifles to caliber .50 inclusive are included 
under Category I(b).

                    category ii--artillery projectors

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

                        category iii--ammunition

    (a) Ammunition for the arms in Categories I and II of this section.
    (b) Components, parts, accessories, and attachments for articles in 
paragraph (a) of this category, including but not limited to cartridge 
cases, powder bags, bullets, jackets, cores, shells (excluding shotgun 
shells), projectiles, boosters, fuzes and components therefor, primers, 
and other detonating devices for such ammunition.
    (c) Ammunition belting and linking machines.
    (d) Ammunition manufacturing machines and ammunition loading 
machines (except handloading ones).
    Note: Cartridge and shell casings are included under Category III 
unless, prior to their importation, they have been rendered useless 
beyond the possibility of restoration for use as a cartridge or shell 
casing by means of heating, flame treatment, mangling, crushing, 
cutting, or popping.

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

    (a) Rockets (including but not limited to meteorological and other 
sounding rockets), bombs, grenades, torpedoes, depth charges, land and 
naval mines, as well as launchers for such defense articles, and 
demolition blocks and blasting caps.
    (b) Launch vehicles and missile and anti-missile systems including 
but not limited to guided, tactical and strategic missiles, launchers, 
and systems.
    (c) Apparatus, devices, and materials for the handling, control, 
activation, monitoring, detection, protection, discharge, or detonation 
of the articles in paragraphs (a) and (b) of this category. Articles in 
this category include, but are not limited to, the following: Fuses and 
components for the items in this category, bomb racks and shackles, bomb 
shackle release units, bomb ejectors, torpedo tubes, torpedo and guided 
missile boosters, guidance system equipment and parts, launching racks 
and projectors, pistols (exploders), igniters, fuze arming devices, 
intervalometers, guided missile launchers and specialized handling 
equipment, and hardened missile launching facilities.
    (d) Missile and space vehicle powerplants.
    (e) Military explosive excavating devices.
    (f) Ablative materials fabricated or semifabricated from advanced 
composites (e.g., silica, graphite, carbon, carbon/carbon, and boron 
filaments) for the articles in this category that are derived directly 
from or specifically developed or modified for defense articles.
    (g) Non/nuclear warheads for rockets and guided missiles.
    (h) All specifically designed components or modified components, 
parts, accessories, attachments, and associated equipment for the 
articles in this category.
    Note: Military demolition blocks and blasting caps referred to in 
Category IV(a) do not include the following articles:
    (a) Electric squibs.
    (b) No. 6 and No. 8 blasting caps, including electric ones.
    (c) Delay electric blasting caps (including No. 6 and No. 8 
millisecond ones).
    (d) Seismograph electric blasting caps (including SSS, Static-
Master, Vibrocap SR, and SEISMO SR).
    (e) Oil well perforating devices.
    Note: Category V of ``Munitions List'' deleted as inapplicable to 
imports.

         category vi--vessels of war and special naval equipment

    (a) Warships, amphibious warfare vessels, landing craft, mine 
warfare vessels, patrol vessels, auxiliary vessels and service craft, 
experimental types of naval ships and any vessels specifically designed 
or modified for military purposes.
    (b) Turrets and gun mounts, arresting gear, special weapons systems, 
protective systems, submarine storage batteries, catapults and other 
components, parts, attachments, and accessories specifically designed or 
modified for combatant vessels.
    (c) Mine sweeping equipment, components, parts, attachments and 
accessories specifically designed or modified therefor.
    (d) Harbor entrance detection devices (magnetic, pressure, and 
acoustic ones) and controls and components therefor.
    (e) Naval nuclear propulsion plants, their land prototypes and 
special facilities for their construction, support and maintenance. This 
includes any machinery, device, component, or equipment specifically 
developed or designed or modified for use in such plants or facilities.
    Note: The term ``vessels of war'' includes, but is not limited to 
the following:
    (a) Combatant vessels:
    (1) Warships (including nuclear-powered versions):
    (i) Aircraft carriers (CV, CVN)
    (ii) Battleships (BB)
    (iii) Cruisers (CA, CG, CGN)

[[Page 92]]

    (iv) Destroyers (DD, DDG)
    (v) Frigates (FF, FFG)
    (vi) Submarines (SS, SSN, SSBN, SSG, SSAG).
    (2) Other Combatant Classifications:
    (i) Patrol Combatants (PC, PHM)
    (ii) Amphibious Helicopter/Landing Craft Carriers (LHA, LPD, LPH)
    (iii) Amphibious Landing Craft Carriers (LKA, LPA, LSD, LST)
    (iv) Amphibious Command Ships (LCC)
    (v) Mine Warfare Ships (MSO).
    (b) Auxiliaries:
    (1) Mobile Logistics Support:
    (i) Under way Replenishment (AD, AF, AFS, AO, AOE, AOR)
    (ii) Material Support (AD, AR, AS).
    (2) Support Ships:
    (i) Fleet Support Ships (ARS, ASR, ATA, ATF, ATS)
    (ii) Other Auxiliaries (AG, AGDS, AGF, AGM, AGOR, AGOS, AGS, AH, AK, 
AKR, AOG, AOT, AP, APB, ARC, ARL, AVM, AVT).
    (c) Combatant Craft:
    (1) Patrol Craft:
    (i) Coastal Patrol Combatants (PB, PCF, PCH, PTF)
    (ii) River, Roadstead Craft (ATC, PBR).
    (2) Amphibious Warfare Craft:
    (i) Landing Craft (AALC, LCAC, LCM, LCPL, LCPR, LCU, LWT, SLWT)
    (ii) Special Warfare Craft (LSSC, MSSC, SDV, SWCL, SWCM).
    (3) Mine Warfare Craft:
    (i) Mine Countermeasures Craft (MSB, MSD, MSI, MSM, MSR).
    (d) Support and Service Craft:
    (1) Tugs (YTB, YTL, YTM)
    (2) Tankers (YO, YOG, YW)
    (3) Lighters (YC, YCF, YCV, YF, YFN, YFNB, YFNX, YFR, YFRN, YFU, YG, 
YGN, YOGN, YON, YOS, YSR, YWN)
    (4) Floating Dry Docks (AFDB, AFDL, AFDM, ARD, ARDM, YFD)
    (5) Miscellaneous (APL, DSRV, DSV, IX, NR, YAG, YD, YDT, YFB, YFND, 
YEP, YFRT, YHLC, YM, YNG, YP, YPD, YR, YRB, YRBN, YRDH, YRDM, YRR, YRST, 
YSD).
    (e) Coast Guard Patrol and Service Vessels and Craft:
    (1) Coast Guard Cutters (CGC, WHEC, WMEC)
    (2) Patrol Craft (WPB)
    (3) Icebreakers (WAGB)
    (4) Oceanography Vessels (WAGO)
    (5) Special Vessels (WIX)
    (6) Buoy Tenders (WLB, WLM, WLI, WLR, WLIC)
    (7) Tugs (WYTM, WYTL)
    (8) Light Ships (WLV).

                category vii--tanks and military vehicles

    (a) Military type armed or armored vehicles, military railway 
trains, and vehicles specifically designed or modified to accommodate 
mountings for arms or other specialized military equipment or fitted 
with such items.
    (b) Military tanks, combat engineer vehicles, bridge launching 
vehicles, halftracks and gun carriers.
    (c) Self-propelled guns and howitzers.
    Note: Category VII (d) and (e) of ``Munitions List'' deleted as 
inapplicable to imports.
    (f) Amphibious vehicles.
    (g) Engines specifically designed or modified for the vehicles in 
paragraphs (a), (b), (c), and (f) of this category.
    (h) All specifically designed or modified components and parts, 
accessories, attachments, and associated equipment for the articles in 
this category, including but not limited to military bridging and deep 
water fording kits.
    Note: An ``amphibious vehicle'' in Category VII(f) is an automotive 
vehicle or chassis which embodies all-wheel drive, which is equipped to 
meet special military requirements, and which has sealed electrical 
systems and adaptation features for deep water fording.

      category viii--aircraft, spacecraft, and associated equipment

    (a) Aircraft, including but not limited to helicopters, non-
expansive balloons, drones and lighter-than-air aircraft, which are 
specifically designed, modified, or equipped for military purposes. This 
includes but is not limited to the following military purposes: gunnery, 
bombing, rocket or missile launching, electronic and other surveillance, 
reconnaissance, refueling, aerial mapping, military liaison, cargo 
carrying or dropping, personnel dropping, airborne warning and control, 
and military training.
    Note: Category VIII (b) through (j) and Categories IX, X, XI, XII 
and XIII of ``Munitions List'' deleted as inapplicable to imports.
    Note: In Category VIII, ``aircraft'' means aircraft designed, 
modified, or equipped for a military purpose, including aircraft 
described as ``demilitarized.'' All aircraft bearing an original 
military designation are included in Category VIII. However, the 
following aircraft are not so included so long as they have not been 
specifically equipped, reequipped, or modified for military operations:
    (a) Cargo aircraft bearing ``C'' designations and numbered C-45 
through C-118 inclusive, and C-121 through C-125 inclusive, and C-131, 
using reciprocating engines only.
    (b) Trainer aircraft bearing ``T'' designations and using 
reciprocating engines or turboprop engines with less than 600 horsepower 
(s.h.p.).
    (c) Utility aircraft bearing ``U'' designations and using 
reciprocating engines only.
    (d) All liaison aircraft bearing an ``L'' designation.

[[Page 93]]

    (e) All observation aircraft bearing ``O'' designations and using 
reciprocating engines.

   category xiv--toxicological agents and equipment and radiological 
                                equipment

    (a) Chemical agents, including but not limited to lung irritants, 
vesicants, lachrymators, and tear gases (except tear gas formulations 
containing 1% or less CN or CS), sternutators and irritant smoke, and 
nerve gases and incapacitating agents.
    (b) Biological agents.
    (c) Equipment for dissemination, detection, and identification of, 
and defense against, the articles in paragraphs (a) and (b) of this 
category.
    (d) Nuclear radiation detection and measuring devices manufactured 
to military specification.
    (e) Components, parts, accessories, attachments, and associated 
equipment specifically designed or modified for the articles in 
paragraphs (c) and (d) of this category.
    Note: A chemical agent in Category XIV(a) is a substance having 
military application which by its ordinary and direct chemical action 
produces a powerful physiological effect. The term ``chemical agent'' 
includes, but is not limited to, the following chemical compounds:
    (a) Lung irritants:
    (1) Diphenylcyanoarsine (DC).
    (2) Fluorine (but not fluorene).
    (3) Trichloronitro methane (chloropicrin PS).
    (b) Vesicants:
    (1) B-Chlorovinyldichloroarsine (Lewisite, L).
    (2) Bis(dichlorethyl) sulphide (Mustard Gas, HD or H).
    (3) Ethyldichloroarsine (ED).
    (4) Methyldichloroarsine (MD).
    (c) Lachrymators and tear gases:
    (1) A-Brombenzyl cyanide (BBC).
    (2) Chloroacetophenone (CN).
    (3) Dibromodimethyl ether.
    (4) Dichlorodimethyl ether (ClCi).
    (5) Ethyldibromoarsine.
    (6) Phenylcarbylamine chloride.
    (7) Tear gas solutions (CNB and CNS).
    (8) Tear gas orthochlorobenzalmalononitrile (CS).
    (d) Sternutators and irritant smokes:
    (1) Diphenylamine chloroarsine (Adamsite, DM).
    (2) Diphenylchloroarsine (BA).
    (3) Liquid pepper.
    (e) Nerve agents, gases, and aerosols. These are toxic compounds 
which affect the nervous system, such as:
    (1) Dimethylaminoethoxycyanophosphine oxide (GA).
    (2) Methylisopropoxyfluorophosphine oxide (GB).
    (3) Methylpinacolyloxyfluoriphosphine oxide (GD).
    (f) Antiplant chemicals, such as: Butyl 2-chloro-4-
fluorophenoxyacetate (LNF).

                         category xv [Reserved]

         category xvi--nuclear weapons design and test equipment

    (a) Any article, material, equipment, or device, which is 
specifically designed or modified for use in the design, development, or 
fabrication of nuclear weapons or nuclear explosive devices.
    (b) Any article, material, equipment, or device, which is 
specifically designed or modified for use in the devising, carrying out, 
or evaluating of nuclear weapons tests or any other nuclear explosions, 
except such items as are in normal commercial use for other purposes.
    Note: Categories XVII, XVIII, and XIX of ``Munitions List'' deleted 
as inapplicable to imports.

category xx--submersible vessels, oceanographic and associated equipment

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

                  category xxi--miscellaneous articles

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

                       category xxii--south africa

    (a) Defense articles enumerated on the U.S. Munitions List (22 CFR 
Part 121).
    (b) Technical data relating to defense articles enumerated on the 
U.S. Munitions List.
    Note: This category is applicable only to South Africa.
    Note: ``Technical data'' means, for purposes of this category:

[[Page 94]]

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

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



Sec. 447.22  Forgings, castings, and machined bodies.

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

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



                         Subpart D--Registration



Sec. 447.31  Registration requirement.

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

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



Sec. 447.32  Application for registration and refund of fee.

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

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

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

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

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



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

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

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

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



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

    (a) Registrants under this part engaged in the business of importing 
articles subject to controls under 27 CFR Parts 478 and 479 shall 
maintain records in accordance with the applicable provisions of those 
parts.
    (b) Registrants under this part engaged in importing articles on the 
U.S. Munitions Import List subject to the permit procedures of subpart E 
of this part must maintain for a period of 6 years records bearing on 
such articles imported, including records concerning

[[Page 95]]

their acquisition and disposition, including Forms 6 and 6A. The 
appropriate ATF officer may prescribe a longer or shorter period in 
individual cases as such officer deems necessary. See Sec. 478.129 of 
this chapter for articles subject to import control under part 478 of 
this chapter.

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

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



Sec. 447.35  Forms prescribed.

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

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



                           Subpart E--Permits



Sec. 447.41  Permit requirement.

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

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



Sec. 447.42  Application for permit.

    (a)(1) Persons required to obtain a permit as provided in 
Sec. 447.41 must file a Form 6--Part I. The application must be signed 
and dated and must contain the information requested on the form, 
including:
    (i) The name, address, telephone number, license and registration 
number, if any (including expiration date) of the importer;
    (ii) The country from which the defense article is to be imported;
    (iii) The name and address of the foreign seller and foreign 
shipper;
    (iv) A description of the defense article to be imported, including-
-
    (A) The name and address of the manufacturer;
    (B) The type (e.g., rifle, shotgun, pistol, revolver, aircraft, 
vessel, and in the case of ammunition only, ball, wadcutter, shot, 
etc.);
    (C) The caliber, gauge, or size;
    (D) The model;
    (E) The length of barrel, if any (in inches);
    (F) The overall length, if a firearm (in inches);
    (G) The serial number, if known;
    (H) Whether the defense article is new or used;
    (I) The quantity;
    (J) The unit cost of the firearm, firearm barrel, ammunition, or 
other defense article to be imported;

[[Page 96]]

    (K) The category of U.S. Munitions Import List under which the 
article is regulated;
    (v) The specific purpose of importation, including final recipient 
information if different from the importer; and
    (vi) Certification of origin.
    (2)(i) If the appropriate ATF officer approves the application, such 
approved application will serve as the permit to import the defense 
article described therein, and importation of such defense article may 
continue to be made by the licensed/registered importer (if applicable) 
under the approved application (permit) during the period specified 
thereon. The appropriate ATF officer will furnish the approved 
application (permit) to the applicant and retain two copies thereof for 
administrative use.
    (ii) If the Director disapproves the application, the licensed/
registered importer (if applicable) will be notified of the basis for 
the disapproval.
    (b) For additional requirements relating to the importation of 
plastic explosives into the United States on or after April 24, 1997, 
see Sec. 555.183 of this title.

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

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



Sec. 447.43  Terms of permit.

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

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



Sec. 447.44  Permit denial, revocation or suspension.

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

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



Sec. 447.45  Importation.

    (a) Articles subject to the import permit procedures of this subpart 
imported into the United States may be released from Customs custody to 
the person authorized to import same upon his showing that he has a 
permit for the importation of the article or articles to be released. 
For articles in Categories I and III imported by a registered importer, 
the importer will also submit to Customs a copy of the export license 
authorizing the export of the article or articles from the exporting 
country. If the exporting country does not require issuance of an export 
license, the importer must submit a certification, under penalty of 
perjury, to that effect.
    (1) In obtaining the release from Customs custody of an article 
imported pursuant to a permit, the permit holder will prepare and file 
Form 6A according to its instructions.
    (2) The ATF Form 6A must contain the information requested on the 
form, including:

[[Page 97]]

    (i) The name, address, and license number (if any) of the importer;
    (ii) The name of the manufacturer of the defense article;
    (iii) The country of manufacture;
    (iv) The type;
    (v) The model;
    (vi) The caliber, gauge, or size;
    (vii) The serial number in the case of firearms, if known; and
    (viii) The number of defense articles released.
    (b) Within 15 days of the date of their release from Customs 
custody, the importer of the articles released will forward to the 
address specified on the form a copy of Form 6A on which will be 
reported any error or discrepancy appearing on the Form 6A certified by 
Customs and serial numbers if not previously provided on ATF Form 6A.

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

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



Sec. 447.46  Articles in transit.

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

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



                   Subpart F--Miscellaneous Provisions



Sec. 447.51  Import certification and delivery verification.

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

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

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



Sec. 447.52  Import restrictions applicable to certain countries.

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

    Note: Changes in foreign policy may result in additions to and 
deletions from the above list of countries. The ATF will publish changes 
to this list in the Federal Register. Contact the Firearms and 
Explosives

[[Page 98]]

Imports Branch at (202) 927-8320 for current information.

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

[[Page 99]]

area of original manufacture and on the country or area of storage for 
the five year period immediately prior to importation. Such information 
may, for example, include a verifiable statement in the English language 
of a government official or any other person having knowledge of the 
date and place of manufacture and/or the place of storage; a warehouse 
receipt or other document which provides the required history of 
storage; and any other document that the applicant believes 
substantiates the place and date of manufacture and the place of 
storage. The appropriate ATF officer, however, reserves the right to 
determine whether documentation is acceptable. Applicants shall, when 
required by the appropriate ATF officer, furnish additional 
documentation as may be necessary to determine whether an import permit 
application should be approved.

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



Sec. 447.53  Exemptions.

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

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



Sec. 447.54  Administrative procedures inapplicable.

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

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



Sec. 447.55  Departments of State and Defense consulted.

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



Sec. 447.56  Authority of Customs officers.

    (a) Officers of the U.S. Customs Service are authorized to take 
appropriate action to assure compliance with this part and with 27 CFR 
Parts 478 and 479 as to the importation or attempted importation of 
articles on the U.S. Munitions Import List, whether or not authorized by 
permit.
    (b) Upon the presentation to him of a permit or written approval 
authorizing importation of articles on the U.S. Munitions Import List, 
the Customs officer who has authority to release same may require, in 
addition to such documents as may be required by Customs regulations, 
the production of other relevant documents relating to the proposed 
importation, including, but not limited to, invoices, orders, packing 
lists, shipping documents, correspondence, and instructions.

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



Sec. 447.57  U.S. military defense articles.

    (a)(1) Notwithstanding any other provision of this part or of parts 
478 or 479

[[Page 100]]

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

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

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



Sec. 447.58  Delegations of the Director.

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

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



             Subpart G--Penalties, Seizures and Forfeitures



Sec. 447.61  Unlawful importation.

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

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

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



Sec. 447.62  False statements or concealment of facts.

    Any person who willfully, in a registration or permit application, 
makes any untrue statement of a material fact or fails to state a 
material fact required to be stated therein or necessary to make the 
statements therein not misleading, shall upon conviction be fined not 
more than $1,000,000, or imprisoned not more than 10 years, or both.

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



Sec. 447.63  Seizure and forfeiture.

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

[[Page 101]]

the value thereof shall be forfeited to the United States.

(18 U.S.C. 545)

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



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




                         Subpart A--Introduction

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

                         Subpart B--Definitions

478.11  Meaning of terms.

         Subpart C--Administrative and Miscellaneous Provisions

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

                           Subpart D--Licenses

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

                     Subpart E--License Proceedings

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

                     Subpart F--Conduct of Business

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

                         Subpart G--Importation

478.111  General.

[[Page 102]]

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

                           Subpart H--Records

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

            Subpart I--Exemptions, Seizures, and Forfeitures

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

Subpart J [Reserved]

                         Subpart K--Exportation

478.171  Exportation.

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

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

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



                         Subpart A--Introduction



Sec. 478.1  Scope of regulations.

    (a) General. The regulations contained in this part relate to 
commerce in firearms and ammunition and are promulgated to implement 
Title I, State Firearms Control Assistance (18 U.S.C. Chapter 44), of 
the Gun Control Act of 1968 (82 Stat. 1213) as amended by Pub. L. 99-308 
(100 Stat. 449), Pub. L. 99-360 (100 Stat. 766), Pub. L. 99-408 (100 
Stat. 920), Pub. L. 103-159 (107 Stat. 1536), Pub. L. 103-322 (108 Stat. 
1796), Pub. L. 104-208 (110 Stat. 3009), and Pub. L. 105-277 (112 Stat. 
2681).
    (b) Procedural and substantive requirements. This part contains the 
procedural and substantive requirements relative to:
    (1) The interstate or foreign commerce in firearms and ammunition;
    (2) The licensing of manufacturers and importers of firearms and 
ammunition, collectors of firearms, and dealers in firearms;
    (3) The conduct of business or activity by licensees;
    (4) The importation of firearms and ammunition;
    (5) The records and reports required of licensees;
    (6) Relief from disabilities under this part;

[[Page 103]]

    (7) Exempt interstate and foreign commerce in firearms and 
ammunition; and
    (8) Restrictions on armor piercing ammunition.

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



Sec. 478.2  Relation to other provisions of law.

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

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



                         Subpart B--Definitions



Sec. 478.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meanings ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude other 
things not enumerated which are in the same general class or are 
otherwise within the scope thereof.
    Act. 18 U.S.C. Chapter 44.
    Adjudicated as a mental defective. (a) A determination by a court, 
board, commission, or other lawful authority that a person, as a result 
of marked subnormal intelligence, or mental illness, incompetency, 
condition, or disease:
    (1) Is a danger to himself or to others; or
    (2) Lacks the mental capacity to contract or manage his own affairs.
    (b) The term shall include--
    (1) A finding of insanity by a court in a criminal case; and
    (2) Those persons found incompetent to stand trial or found not 
guilty by reason of lack of mental responsibility pursuant to articles 
50a and 72b of the Uniform Code of Military Justice, 10 U.S.C. 850a, 
876b.
    Admitted to the United States for lawful hunting or sporting 
purposes. (a) Is entering the United States to participate in a 
competitive target shooting event sponsored by a national, State, or 
local organization, devoted to the competitive use or other sporting use 
of firearms; or
    (b) Is entering the United States to display firearms at a sports or 
hunting trade show sponsored by a national, State, or local firearms 
trade organization, devoted to the competitive use or other sporting use 
of firearms.
    Alien. Any person not a citizen or national of the United States.
    Alien illegally or unlawfully in the United States. Aliens who are 
unlawfully in the United States are not in valid immigrant, nonimmigrant 
or parole status. The term includes any alien--
    (a) Who unlawfully entered the United States without inspection and 
authorization by an immigration officer and who has not been paroled 
into the United States under section 212(d)(5) of the Immigration and 
Nationality Act (INA);
    (b) Who is a nonimmigrant and whose authorized period of stay has 
expired or who has violated the terms of the nonimmigrant category in 
which he or she was admitted;
    (c) Paroled under INA section 212(d)(5) whose authorized period of 
parole has expired or whose parole status has been terminated; or
    (d) Under an order of deportation, exclusion, or removal, or under 
an order to depart the United States voluntarily, whether or not he or 
she has left the United States.
    Ammunition. Ammunition or cartridge cases, primers, bullets, or 
propellent powder designed for use in any

[[Page 104]]

firearm other than an antique firearm. The term shall not include (a) 
any shotgun shot or pellet not designed for use as the single, complete 
projectile load for one shotgun hull or casing, nor (b) any unloaded, 
non-metallic shotgun hull or casing not having a primer.
    Antique firearm. (a) Any firearm (including any firearm with a 
matchlock, flintlock, percussion cap, or similar type of ignition 
system) manufactured in or before 1898; and (b) any replica of any 
firearm described in paragraph (a) of this definition if such replica 
(1) is not designed or redesigned for using rimfire or conventional 
centerfire fixed ammunition, or (2) uses rimfire or conventional 
centerfire fixed ammunition which is no longer manufactured in the 
United States and which is not readily available in the ordinary 
channels of commercial trade.
    Armor piercing ammunition. Projectiles or projectile cores which may 
be used in a handgun and which are constructed entirely (excluding the 
presence of traces of other substances) from one or a combination of 
tungsten alloys, steel, iron, brass, bronze, beryllium copper, or 
depleted uranium; or full jacketed projectiles larger than .22 caliber 
designed and intended for use in a handgun and whose jacket has a weight 
of more than 25 percent of the total weight of the projectile. The term 
does not include shotgun shot required by Federal or State environmental 
or game regulations for hunting purposes, frangible projectiles designed 
for target shooting, projectiles which the Director finds are primarily 
intended to be used for sporting purposes, or any other projectiles or 
projectile cores which the Director finds are intended to be used for 
industrial purposes, including charges used in oil and gas well 
perforating devices.
    ATF officer. An officer or employee of the Bureau of Alcohol, 
Tobacco and Firearms (ATF) authorized to perform any function relating 
to the administration or enforcement of this part.
    Business premises. The property on which the manufacturing or 
importing of firearms or ammunition or the dealing in firearms is or 
will be conducted. A private dwelling, no part of which is open to the 
public, shall not be recognized as coming within the meaning of the 
term.
    Chief, National Licensing Center. The ATF official responsible for 
the issuance and renewal of licenses under this part.
    Collector. Any person who acquires, holds, or disposes of firearms 
as curios or relics.
    Collection premises. The premises described on the license of a 
collector as the location at which he maintains his collection of curios 
and relics.
    Commerce. Travel, trade, traffic, commerce, transportation, or 
communication among the several States, or between the District of 
Columbia and any State, or between any foreign country or any territory 
or possession and any State or the District of Columbia, or between 
points in the same State but through any other State or the District of 
Columbia or a foreign country.
    Committed to a mental institution. A formal commitment of a person 
to a mental institution by a court, board, commission, or other lawful 
authority. The term includes a commitment to a mental institution 
involuntarily. The term includes commitment for mental defectiveness or 
mental illness. It also includes commitments for other reasons, such as 
for drug use. The term does not include a person in a mental institution 
for observation or a voluntary admission to a mental institution.
    Controlled substance. A drug or other substance, or immediate 
precursor, as defined in section 102 of the Controlled Substances Act, 
21 U.S.C. 802. The term includes, but is not limited to, marijuana, 
depressants, stimulants, and narcotic drugs. The term does not include 
distilled spirits, wine, malt beverages, or tobacco, as those terms are 
defined or used in Subtitle E of the Internal Revenue Code of 1986, as 
amended.
    Crime punishable by imprisonment for a term exceeding 1 year. Any 
Federal, State or foreign offense for which the maximum penalty, whether 
or not imposed, is capital punishment or imprisonment in excess of 1 
year. The term shall not include (a) any Federal or State offenses 
pertaining to antitrust

[[Page 105]]

violations, unfair trade practices, restraints of trade, or other 
similar offenses relating to the regulation of business practices or (b) 
any State offense classified by the laws of the State as a misdemeanor 
and punishable by a term of imprisonment of 2 years or less. What 
constitutes a conviction of such a crime shall be determined in 
accordance with the law of the jurisdiction in which the proceedings 
were held. Any conviction which has been expunged or set aside or for 
which a person has been pardoned or has had civil rights restored shall 
not be considered a conviction for the purposes of the Act or this part, 
unless such pardon, expunction, or restoration of civil rights expressly 
provides that the person may not ship, transport, possess, or receive 
firearms, or unless the person is prohibited by the law of the 
jurisdiction in which the proceedings were held from receiving or 
possessing any firearms.
    Curios or relics. Firearms which are of special interest to 
collectors by reason of some quality other than is associated with 
firearms intended for sporting use or as offensive or defensive weapons. 
To be recognized as curios or relics, firearms must fall within one of 
the following categories:
    (a) Firearms which were manufactured at least 50 years prior to the 
current date, but not including replicas thereof;
    (b) Firearms which are certified by the curator of a municipal, 
State, or Federal museum which exhibits firearms to be curios or relics 
of museum interest; and
    (c) Any other firearms which derive a substantial part of their 
monetary value from the fact that they are novel, rare, bizarre, or 
because of their association with some historical figure, period, or 
event. Proof of qualification of a particular firearm under this 
category may be established by evidence of present value and evidence 
that like firearms are not available except as collector's items, or 
that the value of like firearms available in ordinary commercial 
channels is substantially less.
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Dealer. Any person engaged in the business of selling firearms at 
wholesale or retail; any person engaged in the business of repairing 
firearms or of making or fitting special barrels, stocks, or trigger 
mechanisms to firearms; or any person who is a pawnbroker. The term 
shall include any person who engages in such business or occupation on a 
part-time basis.
    Destructive device. (a) Any explosive, incendiary, or poison gas (1) 
bomb, (2) grenade, (3) rocket having a propellant charge of more than 4 
ounces, (4) missile having an explosive or incendiary charge of more 
than one-quarter ounce, (5) mine, or (6) device similar to any of the 
devices described in the preceding paragraphs of this definition; (b) 
any type of weapon (other than a shotgun or a shotgun shell which the 
Director finds is generally recognized as particularly suitable for 
sporting purposes) by whatever name known which will, or which may be 
readily converted to, expel a projectile by the action of an explosive 
or other propellant, and which has any barrel with a bore of more than 
one-half inch in diameter; and (c) any combination of parts either 
designed or intended for use in converting any device into any 
destructive device described in paragraph (a) or (b) of this section and 
from which a destructive device may be readily assembled. The term shall 
not include any device which is neither designed nor redesigned for use 
as a weapon; any device, although originally designed for use as a 
weapon, which is redesigned for use as a signalling, pyrotechnic, line 
throwing, safety, or similar device; surplus ordnance sold, loaned, or 
given by the Secretary of the Army pursuant to the provisions of section 
4684(2), 4685, or 4686 of title 10, United States Code; or any other 
device which the Director finds is not likely to be used as a weapon, is 
an antique, or is a rifle which the owner intends to use solely for 
sporting, recreational, or cultural purposes.

[[Page 106]]

    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of the Treasury, Washington, DC.
    Director of Industry Operations. The principal ATF official in a 
Field Operations division responsible for administering regulations in 
this part.
    Discharged under dishonorable conditions. Separation from the U.S. 
Armed Forces resulting from a dishonorable discharge or dismissal 
adjudged by a general court-martial. The term does not include any 
separation from the Armed Forces resulting from any other discharge, 
e.g., a bad conduct discharge.
    Division. A Bureau of Alcohol, Tobacco and Firearms Division.
    Engaged in the business--(a) Manufacturer of firearms. A person who 
devotes time, attention, and labor to manufacturing firearms as a 
regular course of trade or business with the principal objective of 
livelihood and profit through the sale or distribution of the firearms 
manufactured;
    (b) Manufacturer of ammunition. A person who devotes time, 
attention, and labor to manufacturing ammunition as a regular course of 
trade or business with the principal objective of livelihood and profit 
through the sale or distribution of the ammunition manufactured;
    (c) Dealer in firearms other than a gunsmith or a pawnbroker. A 
person who devotes time, attention, and labor to dealing in firearms as 
a regular course of trade or business with the principal objective of 
livelihood and profit through the repetitive purchase and resale of 
firearms, but such a term shall not include a person who makes 
occasional sales, exchanges, or purchases of firearms for the 
enhancement of a personal collection or for a hobby, or who sells all or 
part of his personal collection of firearms;
    (d) Gunsmith. A person who devotes time, attention, and labor to 
engaging in such activity as a regular course of trade or business with 
the principal objective of livelihood and profit, but such a term shall 
not include a person who makes occasional repairs of firearms or who 
occasionally fits special barrels, stocks, or trigger mechanisms to 
firearms;
    (e) Importer of firearms. A person who devotes time, attention, and 
labor to importing firearms as a regular course of trade or business 
with the principal objective of livelihood and profit through the sale 
or distribution of the firearms imported; and,
    (f) Importer of ammunition. A person who devotes time, attention, 
and labor to importing ammunition as a regular course of trade or 
business with the principal objective of livelihood and profit through 
the sale or distribution of the ammunition imported.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return form, or other document or, where no form of 
declaration is prescribed, with the declaration:

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

    Federal Firearms Act. 15 U.S.C. Chapter 18.
    Firearm. Any weapon, including a starter gun, which will or is 
designed to or may readily be converted to expel a projectile by the 
action of an explosive; the frame or receiver of any such weapon; any 
firearm muffler or firearm silencer; or any destructive device; but the 
term shall not include an antique firearm. In the case of a licensed 
collector, the term shall mean only curios and relics.
    Firearm frame or receiver. That part of a firearm which provides 
housing for the hammer, bolt or breechblock, and firing mechanism, and 
which is usually threaded at its forward portion to receive the barrel.
    Firearm muffler or firearm silencer. Any device for silencing, 
muffling, or diminishing the report of a portable firearm, including any 
combination of parts, designed or redesigned, and intended for use in 
assembling or fabricating a firearm silencer or firearm muffler, and any 
part intended only for use in such assembly or fabrication.
    Friendly foreign government. Any government with whom the United 
States has diplomatic relations and whom the

[[Page 107]]

United States has not identified as a State sponsor of terrorism.
    Fugitive from justice. Any person who has fled from any State to 
avoid prosecution for a felony or a misdemeanor; or any person who 
leaves the State to avoid giving testimony in any criminal proceeding. 
The term also includes any person who knows that misdemeanor or felony 
charges are pending against such person and who leaves the State of 
prosecution.
    Handgun. (a) Any firearm which has a short stock and is designed to 
be held and fired by the use of a single hand; and
    (b) Any combination of parts from which a firearm described in 
paragraph (a) can be assembled.
    Hunting license or permit lawfully issued in the United States. A 
license or permit issued by a State for hunting which is valid and 
unexpired.
    Identification document. A document containing the name, residence 
address, date of birth, and photograph of the holder and which was made 
or issued by or under the authority of the United States Government, a 
State, political subdivision of a State, a foreign government, political 
subdivision of a foreign government, an international governmental or an 
international quasi- governmental organization which, when completed 
with information concerning a particular individual, is of a type 
intended or commonly accepted for the purpose of identification of 
individuals.
    Importation. The bringing of a firearm or ammunition into the United 
States; except that the bringing of a firearm or ammunition from outside 
the United States into a foreign-trade zone for storage pending shipment 
to a foreign country or subsequent importation into this country, 
pursuant to this part, shall not be deemed importation.
    Importer. Any person engaged in the business of importing or 
bringing firearms or ammunition into the United States. The term shall 
include any person who engages in such business on a part-time basis.
    Indictment. Includes an indictment or information in any court, 
under which a crime punishable by imprisonment for a term exceeding 1 
year (as defined in this section) may be prosecuted, or in military 
cases to any offense punishable by imprisonment for a term exceeding 1 
year which has been referred to a general court-martial. An information 
is a formal accusation of a crime, differing from an indictment in that 
it is made by a prosecuting attorney and not a grand jury.
    Interstate or foreign commerce. Includes commerce between any place 
in a State and any place outside of that State, or within any possession 
of the United States (not including the Canal Zone) or the District of 
Columbia. The term shall not include commerce between places within the 
same State but through any place outside of that State.
    Intimate partner. With respect to a person, the spouse of the 
person, a former spouse of the person, an individual who is a parent of 
a child of the person, and an individual who cohabitates or has 
cohabitated with the person.
    Large capacity ammunition feeding device. A magazine, belt, drum, 
feed strip, or similar device for a firearm manufactured after September 
13, 1994, that has a capacity of, or that can be readily restored or 
converted to accept, more than 10 rounds of ammunition. The term does 
not include an attached tubular device designed to accept, and capable 
of operating only with, .22 caliber rimfire ammunition, or a fixed 
device for a manually operated firearm, or a fixed device for a firearm 
listed in 18 U.S.C. 922, Appendix A.
    Licensed collector. A collector of curios and relics only and 
licensed under the provisions of this part.
    Licensed dealer. A dealer licensed under the provisions of this 
part.
    Licensed importer. An importer licensed under the provisions of this 
part.
    Licensed manufacturer. A manufacturer licensed under the provisions 
of this part.
    Machine gun. Any weapon which shoots, is designed to shoot, or can 
be readily restored to shoot, automatically more than one shot, without 
manual reloading, by a single function of the trigger. The term shall 
also include the frame or receiver of any such

[[Page 108]]

weapon, any part designed and intended solely and exclusively, or 
combination of parts designed and intended, for use in converting a 
weapon into a machine gun, and any combination of parts from which a 
machine gun can be assembled if such parts are in the possession or 
under the control of a person.
    Manufacturer. Any person engaged in the business of manufacturing 
firearms or ammunition. The term shall include any person who engages in 
such business on a part-time basis.
    Mental institution. Includes mental health facilities, mental 
hospitals, sanitariums, psychiatric facilities, and other facilities 
that provide diagnoses by licensed professionals of mental retardation 
or mental illness, including a psychiatric ward in a general hospital.
    Misdemeanor crime of domestic violence. (a) Is a Federal, State or 
local offense that:
    (1) Is a misdemeanor under Federal or State law or, in States which 
do not classify offenses as misdemeanors, is an offense punishable by 
imprisonment for a term of one year or less, and includes offenses that 
are punishable only by a fine. (This is true whether or not the State 
statute specifically defines the offense as a ``misdemeanor'' or as a 
``misdemeanor crime of domestic violence.'' The term includes all such 
misdemeanor convictions in Indian Courts established pursuant to 25 CFR 
part 11.);
    (2) Has, as an element, the use or attempted use of physical force 
(e.g., assault and battery), or the threatened use of a deadly weapon; 
and
    (3) Was committed by a current or former spouse, parent, or guardian 
of the victim, by a person with whom the victim shares a child in 
common, by a person who is cohabiting with or has cohabited with the 
victim as a spouse, parent, or guardian, (e.g., the equivalent of a 
``common law'' marriage even if such relationship is not recognized 
under the law), or a person similarly situated to a spouse, parent, or 
guardian of the victim (e.g., two persons who are residing at the same 
location in an intimate relationship with the intent to make that place 
their home would be similarly situated to a spouse).
    (b) A person shall not be considered to have been convicted of such 
an offense for purposes of this part unless:
    (1) The person is considered to have been convicted by the 
jurisdiction in which the proceedings were held.
    (2) The person was represented by counsel in the case, or knowingly 
and intelligently waived the right to counsel in the case; and
    (3) In the case of a prosecution for which a person was entitled to 
a jury trial in the jurisdiction in which the case was tried, either
    (i) The case was tried by a jury, or
    (ii) The person knowingly and intelligently waived the right to have 
the case tried by a jury, by guilty plea or otherwise.
    (c) A person shall not be considered to have been convicted of such 
an offense for purposes of this part if the conviction has been expunged 
or set aside, or is an offense for which the person has been pardoned or 
has had civil rights restored (if the law of the jurisdiction in which 
the proceedings were held provides for the loss of civil rights upon 
conviction for such an offense) unless the pardon, expunction, or 
restoration of civil rights expressly provides that the person may not 
ship, transport, possess, or receive firearms, and the person is not 
otherwise prohibited by the law of the jurisdiction in which the 
proceedings were held from receiving or possessing any firearms.
    National Firearms Act. 26 U.S.C. Chapter 53.
    NICS. The National Instant Criminal Background Check System 
established by the Attorney General pursuant to 18 U.S.C. 922(t).
    Nonimmigrant alien. An alien in the United States in a nonimmigrant 
classification as defined by section 101(a)(15) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(15)).
    Pawnbroker. Any person whose business or occupation includes the 
taking or receiving, by way of pledge or pawn, of any firearm as 
security for the payment or repayment of money. The term shall include 
any person who engages in such business on a part-time basis.
    Permanently inoperable. A firearm which is incapable of discharging 
a shot by means of an explosive and incapable of being readily restored 
to a

[[Page 109]]

firing condition. An acceptable method of rendering most firearms 
permanently inoperable is to fusion weld the chamber closed and fusion 
weld the barrel solidly to the frame. Certain unusual firearms require 
other methods to render the firearm permanently inoperable. Contact ATF 
for instructions.
    Person. Any individual, corporation, company, association, firm, 
partnership, society, or joint stock company.
    Pistol. A weapon originally designed, made, and intended to fire a 
projectile (bullet) from one or more barrels when held in one hand, and 
having (a) a chamber(s) as an integral part(s) of, or permanently 
aligned with, the bore(s); and (b) a short stock designed to be gripped 
by one hand and at an angle to and extending below the line of the 
bore(s).
    Principal objective of livelihood and profit. The intent underlying 
the sale or disposition of firearms is predominantly one of obtaining 
livelihood and pecuniary gain, as opposed to other intents such as 
improving or liquidating a personal firearms collection: Provided, That 
proof of profit shall not be required as to a person who engages in the 
regular and repetitive purchase and disposition of firearms for criminal 
purposes or terrorism. For purposes of this part, the term ``terrorism'' 
means activity, directed against United States persons, which--
    (a) Is committed by an individual who is not a national or permanent 
resident alien of the United States;
    (b) Involves violent acts or acts dangerous to human life which 
would be a criminal violation if committed within the jurisdiction of 
the United States; and
    (c) Is intended--
    (1) To intimidate or coerce a civilian population;
    (2) To influence the policy of a government by intimidation or 
coercion; or
    (3) To affect the conduct of a government by assassination or 
kidnapping.
    Published ordinance. A published law of any political subdivision of 
a State which the Director determines to be relevant to the enforcement 
of this part and which is contained on a list compiled by the Director, 
which list is incorporated by reference in the Federal Register, revised 
annually, and furnished to licensees under this part.
    Renounced U.S. citizenship. (a) A person has renounced his U.S. 
citizenship if the person, having been a citizen of the United States, 
has renounced citizenship either--
    (1) Before a diplomatic or consular officer of the United States in 
a foreign state pursuant to 8 U.S.C. 1481(a)(5); or
    (2) Before an officer designated by the Attorney General when the 
United States is in a state of war pursuant to 8 U.S.C. 1481(a)(6).
    (b) The term shall not include any renunciation of citizenship that 
has been reversed as a result of administrative or judicial appeal.
    Revolver. A projectile weapon, of the pistol type, having a 
breechloading chambered cylinder so arranged that the cocking of the 
hammer or movement of the trigger rotates it and brings the next 
cartridge in line with the barrel for firing.
    Rifle. A weapon designed or redesigned, made or remade, and intended 
to be fired from the shoulder, and designed or redesigned and made or 
remade to use the energy of the explosive in a fixed metallic cartridge 
to fire only a single projectile through a rifled bore for each single 
pull of the trigger.
    Semiautomatic assault weapon. (a) Any of the firearms, or copies or 
duplicates of the firearms in any caliber, known as:
    (1) Norinco, Mitchell, and Poly Technologies Avtomat Kalashnikovs 
(all models),
    (2) Action Arms Israeli Military Industries UZI and Galil,
    (3) Beretta Ar70 (SC-70),
    (4) Colt AR-15,
    (5) Fabrique National FN/FAL, FN/LAR, and FNC,
    (6) SWD M-10, M-11, M-11/9, and M-12,
    (7) Steyr AUG,
    (8) INTRATEC TEC-9, TEC-DC9 and TEC-22, and
    (9) Revolving cylinder shotguns, such as (or similar to) the Street 
Sweeper and Striker 12;
    (b) A semiautomatic rifle that has an ability to accept a detachable 
magazine and has at least 2 of--
    (1) A folding or telescoping stock,

[[Page 110]]

    (2) A pistol grip that protrudes conspicuously beneath the action of 
the weapon,
    (3) A bayonet mount,
    (4) A flash suppressor or threaded barrel designed to accommodate a 
flash suppressor, and
    (5) A grenade launcher;
    (c) A semiautomatic pistol that has an ability to accept a 
detachable magazine and has at least 2 of--
    (1) An ammunition magazine that attaches to the pistol outside of 
the pistol grip,
    (2) A threaded barrel capable of accepting a barrel extender, flash 
suppressor, forward handgrip, or silencer,
    (3) A shroud that is attached to, or partially or completely 
encircles, the barrel and that permits the shooter to hold the firearm 
with the nontrigger hand without being burned,
    (4) A manufactured weight of 50 ounces or more when the pistol is 
unloaded, and
    (5) A semiautomatic version of an automatic firearm; and
    (d) A semiautomatic shotgun that has at least 2 of--
    (1) A folding or telescoping stock,
    (2) A pistol grip that protrudes conspicuously beneath the action of 
the weapon,
    (3) A fixed magazine capacity in excess of 5 rounds, and
    (4) An ability to accept a detachable magazine.
    Semiautomatic pistol. Any repeating pistol which utilizes a portion 
of the energy of a firing cartridge to extract the fired cartridge case 
and chamber the next round, and which requires a separate pull of the 
trigger to fire each cartridge.
    Semiautomatic rifle. Any repeating rifle which utilizes a portion of 
the energy of a firing cartridge to extract the fired cartridge case and 
chamber the next round, and which requires a separate pull of the 
trigger to fire each cartridge.
    Semiautomatic shotgun. Any repeating shotgun which utilizes a 
portion of the energy of a firing cartridge to extract the fired 
cartridge case and chamber the next round, and which requires a separate 
pull of the trigger to fire each cartridge.
    Short-barreled rifle. A rifle having one or more barrels less than 
16 inches in length, and any weapon made from a rifle, whether by 
alteration, modification, or otherwise, if such weapon, as modified, has 
an overall length of less than 26 inches.
    Short-barreled shotgun. A shotgun having one or more barrels less 
than 18 inches in length, and any weapon made from a shotgun, whether by 
alteration, modification, or otherwise, if such weapon as modified has 
an overall length of less than 26 inches.
    Shotgun. A weapon designed or redesigned, made or remade, and 
intended to be fired from the shoulder, and designed or redesigned and 
made or remade to use the energy of the explosive in a fixed shotgun 
shell to fire through a smooth bore either a number of ball shot or a 
single projectile for each single pull of the trigger.
    State. A State of the United States. The term shall include the 
District of Columbia, the Commonwealth of Puerto Rico, and the 
possessions of the United States (not including the Canal Zone).
    State of residence. The State in which an individual resides. An 
individual resides in a State if he or she is present in a State with 
the intention of making a home in that State. If an individual is on 
active duty as a member of the Armed Forces, the individual's State of 
residence is the State in which his or her permanent duty station is 
located. An alien who is legally in the United States shall be 
considered to be a resident of a State only if the alien is residing in 
the State and has resided in the State for a period of at least 90 days 
prior to the date of sale or delivery of a firearm. The following are 
examples that illustrate this definition:

    Example 1. A maintains a home in State X. A travels to State Y on a 
hunting, fishing, business, or other type of trip. A does not become a 
resident of State Y by reason of such trip.
    Example 2. A is a U.S. citizen and maintains a home in State X and a 
home in State Y. A resides in State X except for weekends or the summer 
months of the year and in State Y for the weekends or the summer months 
of the year. During the time that A actually resides in State X, A is a 
resident of State X, and during the time that A actually resides in 
State Y, A is a resident of State Y.

[[Page 111]]

    Example 3. A, an alien, travels on vacation or on a business trip to 
State X. Regardless of the length of time A spends in State X, A does 
not have a State of residence in State X. This is because A does not 
have a home in State X at which he has resided for at least 90 days.
    Unlawful user of or addicted to any controlled substance. A person 
who uses a controlled substance and has lost the power of self-control 
with reference to the use of controlled substance; and any person who is 
a current user of a controlled substance in a manner other than as 
prescribed by a licensed physician. Such use is not limited to the use 
of drugs on a particular day, or within a matter of days or weeks 
before, but rather that the unlawful use has occurred recently enough to 
indicate that the individual is actively engaged in such conduct. A 
person may be an unlawful current user of a controlled substance even 
though the substance is not being used at the precise time the person 
seeks to acquire a firearm or receives or possesses a firearm. An 
inference of current use may be drawn from evidence of a recent use or 
possession of a controlled substance or a pattern of use or possession 
that reasonably covers the present time, e.g., a conviction for use or 
possession of a controlled substance within the past year; multiple 
arrests for such offenses within the past 5 years if the most recent 
arrest occurred within the past year; or persons found through a drug 
test to use a controlled substance unlawfully, provided that the test 
was administered within the past year. For a current or former member of 
the Armed Forces, an inference of current use may be drawn from recent 
disciplinary or other administrative action based on confirmed drug use, 
e.g., court-martial conviction, nonjudicial punishment, or an 
administrative discharge based on drug use or drug rehabilitation 
failure.
    Unserviceable firearm. A firearm which is incapable of discharging a 
shot by means of an explosive and is incapable of being readily restored 
to a firing condition.
    U.S.C. The United States Code.

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

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

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



         Subpart C--Administrative and Miscellaneous Provisions



Sec. 478.21  Forms prescribed.

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

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

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



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

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

[[Page 112]]

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

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



Sec. 478.23  Right of entry and examination.

    (a) Except as provided in paragraph (b), any ATF officer, when there 
is reasonable cause to believe a violation of the Act has occurred and 
that evidence of the violation may be found on the premises of any 
licensed manufacturer, licensed importer, licensed dealer, or licensed 
collector, may, upon demonstrating such cause before a Federal 
magistrate and obtaining from the magistrate a warrant authorizing 
entry, enter during business hours (or, in the case of a licensed 
collector, the hours of operation) the premises, including places of 
storage, of any such licensee for the purpose of inspecting or 
examining:
    (1) Any records or documents required to be kept by such licensee 
under this part and
    (2) Any inventory of firearms or ammunition kept or stored by any 
licensed manufacturer, licensed importer, or licensed dealer at such 
premises or any firearms curios or relics or ammunition kept or stored 
by any licensed collector at such premises.
    (b) Any ATF officer, without having reasonable cause to believe a 
violation of the Act has occurred or that evidence of the violation may 
be found and without demonstrating such cause before a Federal 
magistrate or obtaining from the magistrate a warrant authorizing entry, 
may enter during business hours the premises, including places of 
storage, of any licensed manufacturer, licensed importer, or licensed 
dealer for the purpose of inspecting or examining the records, 
documents, ammunition and firearms referred to in paragraph (a) of this 
section:
    (1) In the course of a reasonable inquiry during the course of a 
criminal investigation of a person or persons other than the licensee,

[[Page 113]]

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

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



Sec. 478.24  Compilation of State laws and published ordinances.

    (a) The Director shall annually revise and furnish Federal firearms 
licensees with a compilation of State laws and published ordinances 
which are relevant to the enforcement of this part. The Director 
annually revises the compilation and publishes it as ``State Laws and 
Published Ordinances--Firearms'' which is furnished free of charge to 
licensees under this part. Where the compilation has previously been 
furnished to licensees, the Director need only furnish amendments of the 
relevant laws and ordinances to such licensees.
    (b) ``State Laws and Published Ordinances--Firearms'' is 
incorporated by reference in this part. It is ATF Publication 5300.5, 
revised yearly. The current edition is available from the Superintendent 
of Documents, U.S. Government Printing Office, Washington, DC 20402. It 
is also available for inspection at the Office of the Federal Register, 
800 North Capitol Street, NW., suite 700, Washington, DC. This 
incorporation by reference was approved by the Director of the Federal 
Register.

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



Sec. 478.25  Disclosure of information.

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

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



Sec. 478.25a  Responses to requests for information.

    Each licensee shall respond immediately to, and in no event later 
than 24 hours after the receipt of, a request

[[Page 114]]

by an ATF officer at the National Tracing Center for information 
contained in the records required to be kept by this part for 
determining the disposition of one or more firearms in the course of a 
bona fide criminal investigation. The requested information shall be 
provided orally to the ATF officer within the 24-hour period. 
Verification of the identity and employment of National Tracing Center 
personnel requesting information may be established at the time the 
requested information is provided by telephoning the toll-free number 1-
800-788-7132 or using the toll-free facsimile (FAX) number 1-800-578-
7223.

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

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



Sec. 478.26  Curio and relic determination.

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

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



Sec. 478.27  Destructive device determination.

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



Sec. 478.28  Transportation of destructive devices and certain firearms.

    (a) The Director may authorize a person to transport in interstate 
or foreign commerce any destructive device, machine gun, short-barreled 
shotgun, or short-barreled rifle, if he finds that such transportation 
is reasonably necessary and is consistent with public safety and 
applicable State and local law. A person who desires to transport in 
interstate or foreign commerce any such device or weapon shall submit a 
written request so to do, in duplicate, to the Director. The request 
shall contain:
    (1) A complete description and identification of the device or 
weapon to be transported;
    (2) A statement whether such transportation involves a transfer of 
title;
    (3) The need for such transportation;
    (4) The approximate date such transportation is to take place;
    (5) The present location of such device or weapon and the place to 
which it is to be transported;
    (6) The mode of transportation to be used (including, if by common 
or contract carrier, the name and address of such carrier); and
    (7) Evidence that the transportation or possession of such device or 
weapon is not inconsistent with the laws at the place of destination.
    (b) No person shall transport any destructive device, machine gun, 
short-barreled shotgun, or short-barreled rifle in interstate or foreign 
commerce under the provisions of this section

[[Page 115]]

until he has received specific authorization so to do from the Director. 
Authorization granted under this section does not carry or import relief 
from any other statutory or regulatory provision relating to firearms.
    (c) This section shall not be construed as requiring licensees to 
obtain authorization to transport destructive devices, machine guns, 
short-barreled shotguns, and short-barreled rifles in interstate or 
foreign commerce: Provided, That in the case of a licensed importer, 
licensed manufacturer, or licensed dealer, such a licensee is qualified 
under the National Firearms Act (see also Part 479 of this chapter) and 
this part to engage in the business with respect to the device or weapon 
to be transported, and that in the case of a licensed collector, the 
device or weapon to be transported is a curio or relic.

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



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

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

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



Sec. 478.29a  Acquisition of firearms by nonresidents.

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

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



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

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

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



Sec. 478.31  Delivery by common or contract carrier.

    (a) No person shall knowingly deliver or cause to be delivered to 
any common or contract carrier for transportation or shipment in 
interstate or foreign commerce to any person other than a licensed 
importer, licensed manufacturer, licensed dealer, or licensed collector, 
any package or other container in which there is any firearm or 
ammunition without written notice to the carrier that such firearm or 
ammunition is being transported or shipped: Provided, That any passenger 
who owns or legally possesses a firearm or ammunition being transported 
aboard any

[[Page 116]]

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

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



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

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

[[Page 117]]

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

[[Page 118]]

paragraph shall only apply to a court order that--
    (i) Was issued after a hearing of which such person received actual 
notice, and at which such person had the opportunity to participate; and
    (ii)(A) Includes a finding that such person represents a credible 
threat to the physical safety of such intimate partner or child; or
    (B) By its terms explicitly prohibits the use, attempted use, or 
threatened use of physical force against such intimate partner or child 
that would reasonably be expected to cause bodily injury, or
    (9) Has been convicted of a misdemeanor crime of domestic violence.
    (e) The actual notice required by paragraphs (a)(8)(i) and (d)(8)(i) 
of this section is notice expressly and actually given, and brought home 
to the party directly, including service of process personally served on 
the party and service by mail. Actual notice also includes proof of 
facts and circumstances that raise the inference that the party received 
notice including, but not limited to, proof that notice was left at the 
party's dwelling house or usual place of abode with some person of 
suitable age and discretion residing therein; or proof that the party 
signed a return receipt for a hearing notice which had been mailed to 
the party. It does not include notice published in a newspaper.
    (f) Pursuant to 18 U.S.C. 922(y)(3), any nonimmigrant alien may 
receive a waiver from the prohibition contained in paragraph (a)(5)(ii) 
of this section, if the Attorney General approves a petition for the 
waiver.

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



Sec. 478.33  Stolen firearms and ammunition.

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

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



Sec. 478.33a  Theft of firearms.

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

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



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

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

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



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

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



Sec. 478.36  Transfer or possession of machine guns.

    No person shall transfer or possess a machine gun except:
    (a) A transfer to or by, or possession by or under the authority of, 
the United States, or any department or agency thereof, or a State, or a 
department, agency, or political subdivision

[[Page 119]]

thereof. (See Part 479 of this chapter); or
    (b) Any lawful transfer or lawful possession of a machine gun that 
was lawfully possessed before May 19, 1986 (See Part 479 of this 
chapter).

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



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

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

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



Sec. 478.38  Transportation of firearms.

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

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



Sec. 478.39  Assembly of semiautomatic rifles or shotguns.

    (a) No person shall assemble a semiautomatic rifle or any shotgun 
using more than 10 of the imported parts listed in paragraph (c) of this 
section if the assembled firearm is prohibited from importation under 
section 925(d)(3) as not being particularly suitable for or readily 
adaptable to sporting purposes.
    (b) The provisions of this section shall not apply to:
    (1) The assembly of such rifle or shotgun for sale or distribution 
by a licensed manufacturer to the United States or any department or 
agency thereof or to any State or any department, agency, or political 
subdivision thereof; or
    (2) The assembly of such rifle or shotgun for the purposes of 
testing or experimentation authorized by the Director under the 
provisions of Sec. 478.151; or
    (3) The repair of any rifle or shotgun which had been imported into 
or assembled in the United States prior to November 30, 1990, or the 
replacement of any part of such firearm.
    (c) For purposes of this section, the term imported parts are:
(1) Frames, receivers, receiver castings, forgings or stampings
(2) Barrels
(3) Barrel extensions
(4) Mounting blocks (trunions)
(5) Muzzle attachments
(6) Bolts
(7) Bolt carriers
(8) Operating rods
(9) Gas pistons
(10) Trigger housings
(11) Triggers
(12) Hammers
(13) Sears
(14) Disconnectors
(15) Buttstocks
(16) Pistol grips
(17) Forearms, handguards
(18) Magazine bodies
(19) Followers
(20) Floorplates

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

[[Page 120]]



Sec. 478.39a  Reporting theft or loss of firearms.

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

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

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



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

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

[[Page 121]]

weapons may only be sold to law enforcement agencies, law enforcement 
officers, or other purchasers specified in paragraph (b) of this 
section;
    (2) Copies of purchase orders submitted to the manufacturer or 
dealer by law enforcement agencies or other purchasers specified in 
paragraph (b) of this section;
    (3) Copies of letters submitted to the manufacturer or dealer by 
government agencies, law enforcement officers, or other purchasers 
specified in paragraph (b) of this section expressing an interest in 
purchasing the semiautomatic assault weapons;
    (4) Letters from dealers to the manufacturer stating that sales will 
only be made to law enforcement agencies, law enforcement officers, or 
other purchasers specified in paragraph (b) of this section; and
    (5) Letters from law enforcement officers purchasing in accordance 
with paragraph (b)(6) of this section and Sec. 478.132.

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

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



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

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

[[Page 122]]

manufacture such devices stating that sales will only be made to law 
enforcement agencies or other purchasers specified in paragraph (b) of 
this section; and
    (5) Letters from law enforcement officers purchasing in accordance 
with paragraph (b)(2) of this section and Sec. 478.132.

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

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



                           Subpart D--Licenses



Sec. 478.41  General.

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

[[Page 123]]

or dealer under this part, he shall qualify as such. (See also 
Sec. 478.93 of this part.)

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

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



Sec. 478.42  License fees.

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

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



Sec. 478.43  License fee not refundable.

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

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



Sec. 478.44  Original license.

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

[[Page 124]]

part, shall file an application, ATF Form 7CR (Curios and Relics), with 
ATF in accordance with the instructions on the form. If the applicant 
(including, in the case of a corporation, partnership, or association, 
any individual possessing, directly or indirectly, the power to direct 
or cause the direction of the management and policies of the 
corporation, partnership, or association) is a nonimmigrant alien, the 
application must include applicable documentation demonstrating that the 
nonimmigrant alien falls within an exception to or has obtained a waiver 
from the nonimmigrant alien provision (e.g., a hunting license or permit 
lawfully issued in the United States; waiver). The application must be 
executed under the penalties of perjury and the penalties imposed by 18 
U.S.C. 924. The application shall be accompanied by a completed ATF Form 
5300.37 and ATF Form 5300.36 and shall include the appropriate fee in 
the form of a money order or check made payable to the Bureau of 
Alcohol, Tobacco and Firearms. ATF Forms 7CR (Curios and Relics), ATF 
Forms 5300.37, and ATF Forms 5300.36 may be obtained by contacting any 
ATF office.

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

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



Sec. 478.45  Renewal of license.

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

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

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



Sec. 478.46  Insufficient fee.

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

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

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



Sec. 478.47  Issuance of license.

    (a) Upon receipt of a properly executed application for a license on 
ATF Form 7, ATF Form 7CR, or ATF Form 8 Part II, the Chief, National 
Licensing Center, shall, upon finding through further inquiry or 
investigation, or otherwise, that the applicant is qualified, issue the 
appropriate license. Each license shall bear a serial number and such 
number may be assigned to the licensee to whom issued for so long as the 
licensee maintains continuity of renewal in the same location (State).
    (b) The Chief, National Licensing Center, shall approve a properly 
executed application for license on ATF Form 7, ATF Form 7CR, or ATF 
Form 8 Part II, if:
    (1) The applicant is 21 years of age or over;
    (2) The applicant (including, in the case of a corporation, 
partnership, or association, any individual possessing,

[[Page 125]]

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

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

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

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



Sec. 478.48  Correction of error on license.

    (a) Upon receipt of a license issued under the provisions of this 
part, each licensee shall examine same to ensure that the information 
contained thereon is accurate. If the license is incorrect, the licensee 
shall return the license to the Chief, National Licensing Center, with a 
statement showing the nature of the error. The Chief, National Licensing 
Center, shall correct the error, if

[[Page 126]]

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

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



Sec. 478.49  Duration of license.

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

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



Sec. 478.50  Locations covered by license.

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

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



Sec. 478.51  License not transferable.

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



Sec. 478.52  Change of address.

    (a) Licensees may during the term of their current license remove 
their business or activity to a new location at which they intend 
regularly to carry on such business or activity by filing an Application 
for an Amended Federal Firearms License, ATF Form 5300.38, in duplicate, 
not less than 30 days prior to such removal with the Chief, National 
Licensing Center. The ATF Form 5300.38 shall be completed in accordance 
with the instructions on the form. The application must be executed 
under the penalties of perjury and penalties imposed by 18 U.S.C. 924. 
The application shall be accompanied by the licensee's original license. 
The Chief, National Licensing Center, may, in writing, require the 
applicant for an amended license to also file completed

[[Page 127]]

ATF Form 7 or ATF Form 7CR, or portions thereof, in the manner required 
by Sec. 478.44.
    (b) Upon receipt of a properly executed application for an amended 
license, the Chief, National Licensing Center, shall, upon finding 
through further inquiry or investigation, or otherwise, that the 
applicant is qualified at the new location, issue the amended license, 
and return it to the applicant. The license shall be valid for the 
remainder of the term of the original license. The Chief, National 
Licensing Center, shall, if the applicant is not qualified, refer the 
application for amended license to the Director of Industry Operations 
for denial in accordance with Sec. 478.71.

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

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



Sec. 478.53  Change in trade name.

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

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



Sec. 478.54  Change of control.

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

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



Sec. 478.55  Continuing partnerships.

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



Sec. 478.56  Right of succession by certain persons.

    (a) Certain persons other than the licensee may secure the right to 
carry on the same firearms or ammunition business at the same address 
shown on, and for the remainder of the term of, a current license. Such 
persons are:
    (1) The surviving spouse or child, or executor, administrator, or 
other legal representative of a deceased licensee; and
    (2) A receiver or trustee in bankruptcy, or an assignee for benefit 
of creditors.
    (b) In order to secure the right provided by this section, the 
person or persons continuing the business shall furnish the license for 
that business for endorsement of such succession to the Chief, National 
Licensing Center, within 30 days from the date on which the successor 
begins to carry on the business.

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

[[Page 128]]



Sec. 478.57  Discontinuance of business.

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

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



Sec. 478.58  State or other law.

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



Sec. 478.59  Abandoned application.

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

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



Sec. 478.60  Certain continuances of business.

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

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



                     Subpart E--License Proceedings



Sec. 478.71  Denial of an application for license.

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

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

[[Page 129]]



Sec. 478.72  Hearing after application denial.

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



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

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

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



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

    If a licensee desires a hearing after receipt of a notice of 
suspension or revocation of a license, or imposition of a civil fine, 
the licensee shall file a request, in duplicate, with the Director of 
Industry Operations within 15 days after receipt of the notice of 
suspension or revocation of a license, or imposition of a civil fine. On 
receipt of such request, the Director of Industry Operations shall, as 
expeditiously as possible, make necessary arrangements for the hearing 
and advise the licensee of the date, time, location and the name of the 
officer before whom the hearing will be held. Such notification shall be 
made no less than 10 days in advance of the date set for the hearing. On 
conclusion of the hearing and consideration of all the relevant 
presentations made by the licensee or the licensee's representative, the 
Director of Industry Operations shall render a decision and shall 
prepare a brief summary of the findings and conclusions on which the 
decision is based. If the decision is that the license should be 
revoked, or, in actions under 18 U.S.C. 922(t)(5), that the license 
should be revoked or suspended, and/or that a civil fine should be 
imposed, a certified copy of the summary

[[Page 130]]

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

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



Sec. 478.75  Service on applicant or licensee.

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

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



Sec. 478.76  Representation at a hearing.

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

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



Sec. 478.77  Designated place of hearing.

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

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



Sec. 478.78  Operations by licensee after notice.

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

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

[[Page 131]]



                     Subpart F--Conduct of Business



Sec. 478.91  Posting of license.

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



Sec. 478.92  How must licensed manufacturers and licensed importers identify firearms, armor piercing ammunition, and large capacity ammunition feeding devices?

    (a)(1) Firearms. You, as a licensed manufacturer or licensed 
importer of firearms, must legibly identify each firearm manufactured or 
imported as follows:
    (i) By engraving, casting, stamping (impressing), or otherwise 
conspicuously placing or causing to be engraved, cast, stamped 
(impressed) or placed on the frame or receiver thereof an individual 
serial number. The serial number must be placed in a manner not 
susceptible of being readily obliterated, altered, or removed, and must 
not duplicate any serial number placed by you on any other firearm. For 
firearms manufactured or imported on and after January 30, 2002, the 
engraving, casting, or stamping (impressing) of the serial number must 
be to a minimum depth of .003 inch and in a print size no smaller than 
\1/16\ inch; and
    (ii) By engraving, casting, stamping (impressing), or otherwise 
conspicuously placing or causing to be engraved, cast, stamped 
(impressed) or placed on the frame, receiver, or barrel thereof certain 
additional information. This information must be placed in a manner not 
susceptible of being readily obliterated, altered, or removed. For 
firearms manufactured or imported on and after January 30, 2002, the 
engraving, casting, or stamping (impressing) of this information must be 
to a minimum depth of .003 inch. The additional information includes:
    (A) The model, if such designation has been made;
    (B) The caliber or gauge;
    (C) Your name (or recognized abbreviation) and also, when 
applicable, the name of the foreign manufacturer;
    (D) In the case of a domestically made firearm, the city and State 
(or recognized abbreviation thereof) where you as the manufacturer 
maintain your place of business; and
    (E) In the case of an imported firearm, the name of the country in 
which it was manufactured and the city and State (or recognized 
abbreviation thereof) where you as the importer maintain your place of 
business. For additional requirements relating to imported firearms, see 
Customs regulations at 19 CFR part 134.
    (2) Firearm frames or receivers. A firearm frame or receiver that is 
not a component part of a complete weapon at the time it is sold, 
shipped, or otherwise disposed of by you must be identified as required 
by this section.
    (3) Special markings for semiautomatic assault weapons, effective 
July 5, 1995. In the case of any semiautomatic assault weapon 
manufactured after September 13, 1994, you must mark the frame or 
receiver ``RESTRICTED LAW ENFORCEMENT/GOVERNMENT USE ONLY'' or, in the 
case of weapons manufactured for export, ``FOR EXPORT ONLY,'' in a 
manner not susceptible of being readily obliterated, altered, or 
removed. For weapons manufactured or imported on and after January 30, 
2002, the engraving, casting, or stamping (impressing) of the special 
markings prescribed in this paragraph (a)(3) must be to a minimum depth 
of .003 inch.
    (4) Exceptions. (i) Alternate means of identification. The Director 
may authorize other means of identification upon receipt of a letter 
application from you, submitted in duplicate, showing that such other 
identification is reasonable and will not hinder the effective 
administration of this part.
    (ii) Destructive devices. In the case of a destructive device, the 
Director may authorize other means of identifying that weapon upon 
receipt of a letter application from you, submitted in duplicate, 
showing that engraving, casting, or stamping (impressing) such a weapon 
would be dangerous or impracticable.
    (iii) Machine guns, silencers, and parts. Any part defined as a 
machine gun, firearm muffler, or firearm silencer in Sec. 478.11, that 
is not a component part of a complete weapon at the time it is

[[Page 132]]

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

[[Page 133]]

hinder the effective administration of this part.

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

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



Sec. 478.93  Authorized operations by a licensed collector.

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

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



Sec. 478.94  Sales or deliveries between licensees.

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

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

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



Sec. 478.95  Certified copy of license.

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

[[Page 134]]

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

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

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



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

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

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

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



Sec. 478.97  Loan or rental of firearms.

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

[[Page 135]]

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

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



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

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

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



Sec. 478.99  Certain prohibited sales or deliveries.

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

[[Page 136]]

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

[[Page 137]]

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

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



Sec. 478.100  Conduct of business away from licensed premises.

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

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



Sec. 478.101  Record of transactions.

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

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



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

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

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

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

[[Page 138]]

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

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

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

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

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



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

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


[[Page 139]]


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

                               FEDERAL LAW

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

                            18 U.S.C. 922(x)

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

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

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

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

[[Page 140]]

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

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

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

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

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

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



                         Subpart G--Importation



Sec. 478.111  General.

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

[[Page 141]]

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

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



Sec. 478.112  Importation by a licensed importer.

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

[[Page 142]]

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

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

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



Sec. 478.113  Importation by other licensees.

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

[[Page 143]]

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

[[Page 144]]

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

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

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



Sec. 478.113a  Importation of firearm barrels by nonlicensees.

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

[[Page 145]]

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

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

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



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

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

[[Page 146]]

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

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

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



Sec. 478.115  Exempt importation.

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

[[Page 147]]

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

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



Sec. 478.116  Conditional importation.

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

[[Page 148]]

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

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



Sec. 478.117  Function outside a customs territory.

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



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

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

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



Sec. 478.119  Importation of ammunition feeding devices.

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

[[Page 149]]

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

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

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



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

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

[[Page 150]]

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

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

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



                           Subpart H--Records



Sec. 478.121  General.

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

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

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



Sec. 478.122  Records maintained by importers.

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

[[Page 151]]



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


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

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

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

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



Sec. 478.123  Records maintained by manufacturers.

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

[[Page 152]]

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

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

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



Sec. 478.124  Firearms transaction record.

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

[[Page 153]]

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

[[Page 154]]

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

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

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



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

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

[[Page 155]]

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

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



Sec. 478.125  Record of receipt and disposition.

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

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


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

[[Page 156]]

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

[[Page 157]]



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

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

[[Page 158]]



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

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

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

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



Sec. 478.125a  Personal firearms collection.

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

[[Page 159]]

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

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

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

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

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



Sec. 478.126  Furnishing transaction information.

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

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

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

[[Page 160]]



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

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

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

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

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



Sec. 478.127  Discontinuance of business.

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

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



Sec. 478.128  False statement or representation.

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

[[Page 161]]

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

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



Sec. 478.129  Record retention.

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

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

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

[[Page 162]]



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

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

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

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



Sec. 478.132  Dispositions of semiautomatic assault weapons and large capacity ammunition feeding devices to law enforcement officers for official use and to 
          employees or contractors of nuclear facilities.

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

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

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



Sec. 478.133  Records of transactions in semiautomatic assault weapons.

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

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

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

[[Page 163]]



Sec. 478.134  Sale of firearms to law enforcement officers.

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

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



            Subpart I--Exemptions, Seizures, and Forfeitures



Sec. 478.141  General.

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

[[Page 164]]

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

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



Sec. 478.142  Effect of pardons and expunctions of convictions.

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

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



Sec. 478.143  Relief from disabilities incurred by indictment.

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



Sec. 478.144  Relief from disabilities under the Act.

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

[[Page 165]]

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

[[Page 166]]

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

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



Sec. 478.145  Research organizations.

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

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



Sec. 478.146  Deliveries by mail to certain persons.

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



Sec. 478.147  Return of firearm.

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

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

[[Page 167]]



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

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

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



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

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

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



Sec. 478.150  Alternative to NICS in certain geographical locations.

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

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

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



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

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

[[Page 168]]

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

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



Sec. 478.152  Seizure and forfeiture.

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

[[Page 169]]

which involves the exportation of firearms or ammunition.

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



Sec. 478.153  Semiautomatic assault weapons and large capacity ammunition feeding devices manufactured or imported for the purposes of testing or 
          experimentation.

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

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

Subpart J [Reserved]



                         Subpart K--Exportation



Sec. 478.171  Exportation.

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

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



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




                     Subpart A--Scope of Regulations

Sec.
479.1  General.

                         Subpart B--Definitions

479.11  Meaning of terms.

         Subpart C--Administrative and Miscellaneous Provisions

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

                 Subpart D--Special (Occupational) Taxes

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

                           Change of Ownership

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

[[Page 170]]

479.45  Changes in corporation.

                       Change of Business Location

479.46  Notice by taxpayer.

                          Change of Trade Name

479.47  Notice by taxpayer.

                         Penalties and Interest

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

                        Application of State Laws

479.52  State regulations.

                    Subpart E--Tax on Making Firearms

479.61  Rate of tax.

                      Application To Make a Firearm

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

                  Exceptions to Tax on Making Firearms

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

                              Registration

479.71  Proof of registration.

                         Subpart F--Transfer Tax

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

              Application and Order for Transfer of Firearm

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

              Exemptions Relating to Transfers of Firearms

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

                            Other Provisions

479.93  Transfers of firearms to certain persons.

         Subpart G--Registration and Identification of Firearms

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

                              Machine Guns

479.105  Transfer and possession of machine guns.

                 Subpart H--Importation and Exportation

                               Importation

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

                               Exportation

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

                         Arms Export Control Act

479.122  Requirements.

                     Subpart I--Records and Returns

479.131  Records.

             Subpart J--Stolen or Lost Firearms or Documents

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

               Subpart K--Examination of Books and Records

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

               Subpart L--Distribution and Sale of Stamps

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

[[Page 171]]

       Subpart M--Redemption of or Allowance for Stamps or Refunds

479.171  Redemption of or allowance for stamps.
479.172  Refunds.

                  Subpart N--Penalties and Forfeitures

479.181  Penalties.
479.182  Forfeitures.

                    Subpart O--Other Laws Applicable

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

    Authority: 26 U.S.C. 7805.

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

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



                     Subpart A--Scope of Regulations



Sec. 479.1  General.

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

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



                         Subpart B--Definitions



Sec. 479.11  Meaning of terms.

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

[[Page 172]]

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

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

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

[[Page 173]]

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

[[Page 174]]

being readily restored to a firing condition.

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

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



         Subpart C--Administrative and Miscellaneous Provisions



Sec. 479.21  Forms prescribed.

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

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

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



Sec. 479.22  Right of entry and examination.

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

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



Sec. 479.23  Restrictive use of required information.

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

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



Sec. 479.24  Destructive device determination.

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

[[Page 175]]

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

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



Sec. 479.25  Collector's items.

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

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



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

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

[[Page 176]]

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

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



                 Subpart D--Special (Occupational) Taxes



Sec. 479.31  Liability for tax.

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

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

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



Sec. 479.32  Special (occupational) tax rates.

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

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

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

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

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

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



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

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

[[Page 177]]

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

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

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



Sec. 479.33  Special exemption.

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



Sec. 479.34  Special tax registration and return.

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

[[Page 178]]

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

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

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



Sec. 479.35  Employer identification number.

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

[[Page 179]]

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

(26 U.S.C. 6109)

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



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

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

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



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

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

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



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

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

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



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

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

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

[[Page 180]]



Sec. 479.40  Partnership liability.

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



Sec. 479.41  Single sale.

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

                           Change of Ownership



Sec. 479.42  Changes through death of owner.

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

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



Sec. 479.43  Changes through bankruptcy of owner.

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

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



Sec. 479.44  Change in partnership or unincorporated association.

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



Sec. 479.45  Changes in corporation.

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

                       Change of Business Location



Sec. 479.46  Notice by taxpayer.

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

[[Page 181]]

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

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

                          Change of Trade Name



Sec. 479.47  Notice by taxpayer.

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

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

                         Penalties and Interest



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

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

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



Sec. 479.49  Failure to register change or removal.

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



Sec. 479.50  Delinquency.

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

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



Sec. 479.51  Fraudulent return.

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

[[Page 182]]

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

                        Application of State Laws



Sec. 479.52  State regulations.

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



                    Subpart E--Tax on Making Firearms



Sec. 479.61  Rate of tax.

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

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

                      Application to Make a Firearm



Sec. 479.62  Application to make.

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

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



Sec. 479.63  Identification of applicant.

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

[[Page 183]]

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

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



Sec. 479.64  Procedure for approval of application.

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

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



Sec. 479.65  Denial of application.

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



Sec. 479.66  Subsequent transfer of firearms.

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

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



Sec. 479.67  Cancellation of stamp.

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

                  Exceptions to Tax on Making Firearms



Sec. 479.68  Qualified manufacturer.

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

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



Sec. 479.69  Making a firearm for the United States.

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

[[Page 184]]



Sec. 479.70  Certain government entities.

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

                              Registration



Sec. 479.71  Proof of registration.

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



                         Subpart F--Transfer Tax



Sec. 479.81  Scope of tax.

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



Sec. 479.82  Rate of tax.

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



Sec. 479.83  Transfer tax in addition to import duty.

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

              Application and Order for Transfer of Firearm



Sec. 479.84  Application to transfer.

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

[[Page 185]]

shall identify the special (occupational) tax stamp and Federal firearms 
license of the transferee, if any. Any tax payable on the transfer must 
be represented by an adhesive stamp of proper denomination being affixed 
to the application, Form 4 (Firearms), properly cancelled.

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



Sec. 479.85  Identification of transferee.

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

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



Sec. 479.86  Action on application.

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

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



Sec. 479.87  Cancellation of stamp.

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

              Exemptions Relating to Transfers of Firearms



Sec. 479.88  Special (occupational) taxpayers.

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

[[Page 186]]

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

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



Sec. 479.89  Transfers to the United States.

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



Sec. 479.90  Certain government entities.

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

[[Page 187]]

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

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



Sec. 479.91  Unserviceable firearms.

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

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



Sec. 479.92  Transportation of firearms to effect transfer.

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

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

                            Other Provisions



Sec. 479.93  Transfers of firearms to certain persons.

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

[[Page 188]]

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



         Subpart G--Registration and Identification of Firearms



Sec. 479.101  Registration of firearms.

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

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



Sec. 479.102  How must firearms be identified?

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

[[Page 189]]

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

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

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



Sec. 479.103  Registration of firearms manufactured.

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



Sec. 479.104  Registration of firearms by certain governmental entities.

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

[[Page 190]]

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

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

                              Machine Guns



Sec. 479.105  Transfer and possession of machine guns.

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

[[Page 191]]

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

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



                 Subpart H--Importation and Exportation

                               Importation



Sec. 479.111  Procedure.

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

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

[[Page 192]]

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

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



Sec. 479.112  Registration of imported firearms.

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

[[Page 193]]

quantity of samples sought to be imported.

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



Sec. 479.113  Conditional importation.

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

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

                               Exportation



Sec. 479.114  Application and permit for exportation of firearms.

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



Sec. 479.115  Action by Director.

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



Sec. 479.116  Procedure by exporter.

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



Sec. 479.117  Action by Customs.

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

[[Page 194]]

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



Sec. 479.118  Proof of exportation.

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



Sec. 479.119  Transportation of firearms to effect exportation.

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

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



Sec. 479.120  Refunds.

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



Sec. 479.121  Insular possessions.

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

                         Arms Export Control Act



Sec. 479.122  Requirements.

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

[[Page 195]]

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

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



                     Subpart I--Records and Returns



Sec. 479.131  Records.

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

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

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



             Subpart J--Stolen or Lost Firearms or Documents



Sec. 479.141  Stolen or lost firearms.

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



Sec. 479.142  Stolen or lost documents.

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



               Subpart K--Examination of Books and Records



Sec. 479.151  Failure to make returns: Substitute returns.

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

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



Sec. 479.152  Penalties (records and returns).

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

[[Page 196]]



               Subpart L--Distribution and Sale of Stamps



Sec. 479.161  National Firearms Act stamps.

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

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



Sec. 479.162  Stamps authorized.

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

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



Sec. 479.163  Reuse of stamps prohibited.

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

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



       Subpart M--Redemption of or Allowance for Stamps or Refunds



Sec. 479.171  Redemption of or allowance for stamps.

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

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

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



Sec. 479.172  Refunds.

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

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

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



                  Subpart N--Penalties and Forfeitures



Sec. 479.181  Penalties.

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

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

[[Page 197]]



Sec. 479.182  Forfeitures.

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

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



                    Subpart O--Other Laws Applicable



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

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

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



Sec. 479.192  Commerce in firearms and ammunition.

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

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



Sec. 479.193  Arms Export Control Act.

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

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

[[Page 198]]



                        SUBCHAPTER C--EXPLOSIVES





PART 555--COMMERCE IN EXPLOSIVES--Table of Contents




                         Subpart A--Introduction

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

                         Subpart B--Definitions

555.11  Meaning of terms.

         Subpart C--Administrative and Miscellaneous Provisions

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

                     Subpart D--Licenses and Permits

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

                Subpart E--License and Permit Proceedings

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

              Subpart F--Conduct of Business or Operations

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

                     Subpart G--Records and Reports

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

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

                          Subpart H--Exemptions

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

     Subpart I--Unlawful Acts, Penalties, Seizures, and Forfeitures

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

                Subpart J--Marking of Plastic Explosives

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

                           Subpart K--Storage

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

    Authority: 18 U.S.C. 847.

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

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



                         Subpart A--Introduction



Sec. 555.1  Scope of regulations.

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

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

[[Page 200]]



Sec. 555.2  Relation to other provisions of law.

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



                         Subpart B--Definitions



Sec. 555.11  Meaning of terms.

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

[[Page 201]]

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

[[Page 202]]

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

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

[[Page 203]]

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

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

[[Page 204]]

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

[[Page 205]]

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

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

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

[[Page 206]]



         Subpart C--Administrative and Miscellaneous Provisions



Sec. 555.21  Forms prescribed.

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

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



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

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

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

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

[[Page 207]]

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



Sec. 555.23  List of explosive materials.

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

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



Sec. 555.24  Right of entry and examination.

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

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



Sec. 555.25  Disclosure of information.

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



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

    (a) General. No person, other than a licensee or permittee knowingly 
may transport, ship, cause to be transported, or receive any explosive 
materials: Provided, That the provisions of this paragraph (a) do not 
apply to the lawful purchase by a nonlicensee or nonpermittee of 
commercially manufactured black powder in quantities not to exceed 50 
pounds, if the black powder is intended to be used solely for sporting, 
recreational, or cultural purposes in antique firearms as defined in 18 
U.S.C. 921(a)(16), or in antique devices as exempted from the term 
``destructive device'' in 18 U.S.C. 921(a)(4).
    (b) Holders of a limited permit. No person who is a holder of a 
limited permit may--
    (1) Transport, ship, cause to be transported, or receive in 
interstate or foreign commerce any explosive materials;
    (2) Receive explosive materials from a licensee or permittee, whose 
premises are located outside the State of residence of the limited 
permit holder; or
    (3) Receive explosive materials on more than 6 separate occasions, 
during the period of the permit, from one or more licensees or 
permittees whose premises are located within the State of residence of 
the limited permit holder. (See Sec. 555.105(b) for the definition of 
``6 separate occasions.'')
    (c) Possession by prohibited persons. No person may ship or 
transport any explosive material in or affecting interstate or foreign 
commerce or receive or possess any explosive materials which have been 
shipped or transported in or affecting interstate or foreign commerce 
who:
    (1) Is under indictment or information for, or who has been 
convicted in

[[Page 208]]

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

[[Page 209]]

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

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



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

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

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



Sec. 555.28  Stolen explosive materials.

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



Sec. 555.29  Unlawful storage.

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



Sec. 555.30  Reporting theft or loss of explosive materials.

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

[[Page 210]]

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

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



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

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



Sec. 555.32  Special explosive devices.

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



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

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

[[Page 211]]

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

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

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



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

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

[[Page 212]]

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

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

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



                     Subpart D--Licenses and Permits



Sec. 555.41  General.

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

[[Page 213]]

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

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

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



Sec. 555.42  License fees.

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

[[Page 214]]

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

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



Sec. 555.43  Permit fees.

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

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



Sec. 555.44  License or permit fee not refundable.

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



Sec. 555.45  Original license or permit.

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

[[Page 215]]

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

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

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

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



Sec. 555.46  Renewal of license or permit.

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

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

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



Sec. 555.47  Insufficient fee.

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

[[Page 216]]

submitted will be returned to the applicant.

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

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



Sec. 555.48  Abandoned application.

    Upon receipt of an incomplete or improperly executed application, 
the applicant will be notified of the deficiency in the application. If 
the application is not corrected and returned within 30 days following 
the date of notification, the application will be considered as having 
been abandoned and the license or permit fee returned.



Sec. 555.49  Issuance of license or permit.

    (a) Issuance of license or permit prior to May 24, 2003. (1) The 
Chief, Firearms and Explosives Licensing Center, will issue a license or 
permit if--
    (i) A properly executed application for the license or permit is 
received; and
    (ii) Through further inquiry or investigation, or otherwise, it is 
found that the applicant is entitled to the license or permit.
    (2) The Chief, Firearms and Explosives Licensing Center, will 
approve a properly executed application for a license or permit, if:
    (i) The applicant is 21 years of age or over;
    (ii) The applicant (including, in the case of a corporation, 
partnership, or association, any individual possessing, directly or 
indirectly, the power to direct or cause the direction of the management 
and policies of the corporation, partnership, or association) is not a 
person to whom distribution of explosive materials is prohibited under 
the Act;
    (iii) The applicant has not willfully violated any provisions of the 
Act or this part;
    (iv) The applicant has not knowingly withheld information or has not 
made any false or fictitious statement intended or likely to deceive, in 
connection with his application;
    (v) The applicant has in a State, premises from which he conducts 
business or operations subject to license or permit under the Act or 
from which he intends to conduct business or operations;
    (vi) The applicant has storage for the class (as described in 
Sec. 555.202) of explosive materials described on the application, 
unless he establishes to the satisfaction of the Chief, Firearms and 
Explosives Licensing Center, that the business or operations to be 
conducted will not require the storage of explosive materials;
    (vii) The applicant has certified in writing that he is familiar 
with and understands all published State laws and local ordinances 
relating to explosive materials for the location in which he intends to 
do business; and
    (viii) The applicant for a license has submitted the certificate 
required by section 21 of the Federal Water Pollution Control Act, as 
amended (33 U.S.C. 1341).
    (3) The Chief, Firearms and Explosives Licensing Center, will 
approve or the regional director (compliance) will deny any application 
for a license or permit within the 45-day period beginning on the date a 
properly executed application was received. However, when an applicant 
for license or permit renewal is a person who is, under the provisions 
of Sec. 555.83 or Sec. 555.142, conducting business or operations under 
a previously issued license or permit, action regarding the application 
will be held in abeyance pending the completion of the proceedings 
against the applicant's existing license or permit, or renewal 
application, or final action by the Director on an application for 
relief submitted under Sec. 555.142, as the case may be.
    (4) The license or permit and one copy will be forwarded to the 
applicant, except that in the case of a user-limited permit, the 
original only will be issued.
    (5) Each license or permit will bear a serial number and this number 
may be assigned to the licensee or permittee to whom issued for as long 
as he maintains continuity of renewal in the same region.
    (b) Issuance of license or permit on and after May 24, 2003. (1) The 
Chief, Firearms and Explosives Licensing Center, will issue a license or 
permit if:

[[Page 217]]

    (i) A properly executed application for the license or permit is 
received; and
    (ii) Through further inquiry or investigation, or otherwise, it is 
found that the applicant is entitled to the license or permit.
    (2) The Chief, Firearms and Explosives Licensing Center, will 
approve a properly executed application for a license or permit, if:
    (i) The applicant (or, if the applicant is a corporation, 
partnership, or association, each responsible person with respect to the 
applicant) is not a person described in any paragraph of section 842(i) 
of the Act;
    (ii) The applicant has not willfully violated any provisions of the 
Act or this part;
    (iii) The applicant has not knowingly withheld information or has 
not made any false or fictitious statement intended or likely to 
deceive, in connection with his application;
    (iv) The applicant has in a State, premises from which he conducts 
business or operations subject to license or permit under the Act or 
from which he intends to conduct business or operations;
    (v) The applicant has storage for the class (as described in 
Sec. 555.202) of explosive materials described on the application;
    (vi) The applicant has certified in writing that he is familiar with 
and understands all published State laws and local ordinances relating 
to explosive materials for the location in which he intends to do 
business;
    (vii) The applicant for a license has submitted the certificate 
required by section 21 of the Federal Water Pollution Control Act, as 
amended (33 U.S.C. 1341);
    (viii) None of the employees of the applicant who will be authorized 
by the applicant to possess explosive materials is a person described in 
any paragraph of section 842(i) of the Act; and
    (ix) In the case of an applicant for a limited permit, the applicant 
has certified in writing that the applicant will not receive explosive 
materials on more than 6 separate occasions during the 12-month period 
for which the limited permit is valid.
    (3) The Chief, Firearms and Explosives Licensing Center, will 
approve or the regional director (compliance) will deny any application 
for a license or permit within the 90-day period beginning on the date a 
properly executed application was received. However, when an applicant 
for license or permit renewal is a person who is, under the provisions 
of Sec. 555.83 or Sec. 555.142, conducting business or operations under 
a previously issued license or permit, action regarding the application 
will be held in abeyance pending the completion of the proceedings 
against the applicant's existing license or permit, or renewal 
application, or final action by the Director on an application for 
relief submitted under Sec. 555.142, as the case may be.
    (4) The license or permit and one copy will be forwarded to the 
applicant, except that in the case of a user-limited permit, the 
original only will be issued.
    (5) Each license or permit will bear a serial number and this number 
may be assigned to the licensee or permittee to whom issued for as long 
as he maintains continuity of renewal in the same region.

(Approved by the Office of Management and Budget under control number 
1140-0082)

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



Sec. 555.50  Correction of error on license or permit.

    (a) Upon receipt of a license or permit issued under this part, each 
licensee or permittee shall examine the license or permit to insure that 
the information on it is accurate. If the license or permit is 
incorrect, the licensee or permittee shall return the license or permit 
to the Chief, Firearms and Explosives Licensing Center, with a statement 
showing the nature of the error. The Chief, Firearms and Explosives 
Licensing Center, shall correct the error, if the error was made in his 
office, and return the license or permit. However, if the error resulted 
from information contained in the licensee's or permittee's application 
for the license or permit, the Chief, Firearms and Explosives Licensing 
Center, shall require the licensee or permittee to file an amended 
application setting forth

[[Page 218]]

the correct information and a statement explaining the error contained 
in the application. Upon receipt of the amended application and a 
satisfactory explanation of the error, the Chief, Firearms and 
Explosives Licensing Center, shall make the correction on the license or 
permit and return it to the licensee or permittee.
    (b) When the Chief, Firearms and Explosives Licensing Center, finds 
through any means other than notice from the licensee or permittee that 
an incorrect license or permit has been issued, (1) the Chief, Firearms 
and Explosives Licensing Center, may require the holder of the incorrect 
license or permit to return the license or permit for correction, and 
(2) if the error resulted from information contained in the licensee's 
or permittee's application for the license or permit, the Chief, 
Firearms and Explosives Licensing Center, shall require the licensee or 
permittee to file an amended application setting forth the correct 
information, and a statement satisfactorily explaining the error 
contained in the application. The Chief, Firearms and Explosives 
Licensing Center, then shall make the correction on the license or 
permit and return it to the licensee or permittee.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.51  Duration of license or permit.

    (a) Prior to May 24, 2003. An original license or permit is issued 
for a period of three years. A renewal license or permit is issued for a 
period of three years. However, a user-limited permit is valid only for 
a single purchase transaction.
    (b) On and after May 24, 2003. (1) An original license or user 
permit is issued for a period of three years. A renewal license or user 
permit is also issued for a period of three years. However, a user-
limited permit is valid only for a single purchase transaction.
    (2) A limited permit is issued for a period of one year. A renewal 
limited permit is also issued for a period of one year.

[ATF No. 1, 68 FR 13786, Mar. 20, 2003]



Sec. 555.52  Limitations on license or permit.

    (a) The license covers the business and class (as described in 
Sec. 555.202) of explosive materials specified in the license at the 
licensee's business premises (see Sec. 555.41(b)).
    (b) The permit is valid with respect to the type of operations and 
class (as described in Sec. 555.202) of explosive materials specified in 
the permit.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8376, Feb. 25, 1997]



Sec. 555.53  License and permit not transferable.

    Licenses and permits issued under this part are not transferable to 
another person. In the event of the lease, sale, or other transfer of 
the business or operations covered by the license or permit, the 
successor must obtain the license or permit required by this part before 
commencing business or operations. However, for rules on right of 
succession, see Sec. 555.59.



Sec. 555.54  Change of address.

    (a) During the term of a license or permit, a licensee or permittee 
may move his business or operations to a new address at which he intends 
to regularly carry on his business or operations, without procuring a 
new license or permit. However, in every case, the licensee or permittee 
shall--
    (1) Give notification of the new location of the business or 
operations to the Chief, Firearms and Explosives Licensing Center at 
least 10 days before the move; and
    (2) Submit the license or permit to the Chief, Firearms and 
Explosives Licensing Center. The Chief, Firearms and Explosives 
Licensing Center will issue an amended license or permit, which will 
contain the new address (and new license or permit number, if any).

[[Page 219]]

    (b) Licensees and permittees whose mailing address will change must 
notify the Chief, Firearms and Explosives Licensing Center, at least 10 
days before the change.

(Paragraph (b) approved by the Office of Management and Budget under 
control number 1140-0080)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989; ATF No. 1, 68 FR 13786, Mar. 20, 2003]



Sec. 555.55  Change in class of explosive materials.

    A licensee or permittee who intends to change the class of explosive 
materials described in his license or permit from a lower to a higher 
classification (see Sec. 555.202) shall file an application on ATF F 
5400.13 or on ATF F 5400.16 with the Chief, Firearms and Explosives 
Licensing Center, for an amended license or permit. If the change in 
class of explosive materials would require a change in magazines, the 
amended application must include a description of the type of 
construction as prescribed in this part. Business or operations with 
respect to the new class of explosive materials may not be commenced 
before issuance of the amended license or amended permit. Upon receipt 
of the amended license or amended permit, the licensee or permittee 
shall submit his superseded license or superseded permit and any copies 
furnished with the license or permit to the Chief, Firearms and 
Explosives Licensing Center.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989; T.D. ATF-387, 62 FR 8376, Feb. 25, 1997]



Sec. 555.56  Change in trade name.

    A licensee or permittee continuing to conduct business or operations 
at the location shown on his license or permit is not required to obtain 
a new license or permit by reason of a mere change in trade name under 
which he conducts his business or operations. However, the licensee or 
permittee shall furnish his license or permit and any copies furnished 
with the license or permit for endorsement of the change to the Chief, 
Firearms and Explosives Licensing Center, within 30 days from the date 
the licensee or permittee begins his business or operations under the 
new trade name.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.57  Change of control, change in responsible persons, and change of employees.

    (a) In the case of a corporation or association holding a license or 
permit under this part, if actual or legal control of the corporation or 
association changes, directly or indirectly, whether by reason of change 
in stock ownership or control (in the corporation holding a license or 
permit or in any other corporation), by operation of law, or in any 
other manner, the licensee or permittee shall, within 30 days of the 
change, give written notification executed under the penalties of 
perjury, to the Chief, Firearms and Explosives Licensing Center. Upon 
expiration of the license or permit, the corporation or association 
shall file an ATF F 5400.13 or an ATF F 5400.16 as required by 
Sec. 555.45, and pay the fee prescribed in Sec. 555.42(b) or 
Sec. 555.43(b).
    (b) For all licenses or permits issued on and after May 24, 2003, 
each person holding the license or permit must report to the Chief, 
Firearms and Explosives Licensing Center, any change in responsible 
persons or employees authorized to possess explosive materials. Such 
report must be submitted within 30 days of the change and must include 
appropriate identifying information for each responsible person. Reports 
relating to newly hired employees authorized to possess explosive 
materials must be submitted on ATF F 5400.28 for each employee.
    (c) Upon receipt of a report, the Chief, Firearms and Explosives 
Licensing Center, will conduct a background check, if appropriate, in 
accordance with Sec. 555.33.
    (d) The reports required by paragraph (b) of this section must be 
retained as part of a licensee's or permittee's permanent records for 
the period specified in Sec. 555.121.

(Approved by the Office of Management and Budget under control number 
1140-0074)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989; ATF No. 1, 68 FR 13786, Mar. 20, 2003]

[[Page 220]]



Sec. 555.58  Continuing partnerships.

    Where, under the laws of the particular State, the partnership is 
not terminated on death or insolvency of a partner, but continues until 
the winding up of the partnership affairs is completed, and the 
surviving partner has the exclusive right to the control and possession 
of the partnership assets for the purpose of liquidation and settlement, 
the surviving partner may continue to conduct the business or operations 
under the license or permit of the partnership. If the surviving partner 
acquires the business or operations on completion of settlement of the 
partnership, he shall obtain a license or permit in his own name from 
the date of acquisition, as provided in Sec. 555.45. The rule set forth 
in this section will also apply where there is more than one surviving 
partner.



Sec. 555.59  Right of succession by certain persons.

    (a) Certain persons other than the licensee or permittee may secure 
the right to carry on the same explosive materials business or 
operations at the same business premises for the remainder of the term 
of license or permit. These persons are:
    (1) The surviving spouse or child, or executor, administrator, or 
other legal representative of a deceased licensee or permittee; and
    (2) A receiver or trustee in bankruptcy, or an assignee for benefit 
of creditors.
    (b) In order to secure the right of succession, the person or 
persons continuing the business or operations shall submit the license 
or permit and all copies furnished with the license or permit for 
endorsement of the succession to the Chief, Firearms and Explosives 
Licensing Center, within 30 days from the date on which the successor 
begins to carry on the business or operations.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.60  Certain continuances of business or operations.

    A licensee or permittee who furnishes his license or permit to the 
Chief, Firearms and Explosives Licensing Center, for correction, 
amendment, or endorsement, as provided in this subpart, may continue his 
business or operations while awaiting its return.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.61  Discontinuance of business or operations.

    Where an explosive materials business or operations is either 
discontinued or succeeded by a new owner, the owner of the business or 
operations discontinued or succeeded shall, within 30 days, furnish 
notification of the discontinuance or succession and submit his license 
or permit and any copies furnished with the license or permit to the 
Chief, Firearms and Explosives Licensing Center. (See also 
Sec. 555.128.)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.62  State or other law.

    A license or permit issued under this part confers no right or 
privilege to conduct business or operations, including storage, contrary 
to State or other law. The holder of a license or permit issued under 
this part is not, by reason of the rights and privileges granted by that 
license or permit, immune from punishment for conducting an explosive 
materials business or operations in violation of the provisions of any 
State or other law. Similarly, compliance with the provisions of any 
State or other law affords no immunity under Federal law or regulations.



Sec. 555.63  Explosives magazine changes.

    (a) General. (1) The requirements of this section are applicable to 
magazines used for other than temporary (under 24 hours) storage of 
explosives.
    (2) A magazine is considered suitable for the storage of explosives 
if the construction requirements of this part are met during the time 
explosives are stored in the magazine.
    (3) A magazine is considered suitable for the storage of explosives 
if positioned in accordance with the applicable table of distances as 
specified in this part during the time explosives are stored in the 
magazine.

[[Page 221]]

    (4) For the purposes of this section, notification of the regional 
director (compliance) may be by telephone or in writing. However, if 
notification of the regional director (compliance) is in writing it must 
be at least three business days in advance of making changes in 
construction to an existing magazine or constructing a new magazine, and 
at least five business days in advance of using any reconstructed 
magazine or added magazine for the storage of explosives.
    (b) Exception. Mobile or portable type 5 magazines are exempt from 
the requirements of paragraphs (c) and (d) of this section, but must 
otherwise be in compliance with paragraphs (a) (2) and (3) of this 
section during the time explosives are stored in such magazines.
    (c) Changes in magazine construction. A licensee or permittee who 
intends to make changes in construction of an existing magazine shall 
notify the regional director (compliance) describing the proposed 
changes prior to making any changes. Unless otherwise advised by the 
regional director (compliance), changes in construction may commence 
after explosives are removed from the magazine. Explosives may not be 
stored in a reconstructed magazine before the regional director 
(compliance) has been notified in accordance with paragraph (a)(4) of 
this section that the changes have been completed.
    (d) Magazines acquired or constructed after permit or license is 
issued. A licensee or permittee who intends to construct or acquire 
additional magazines shall notify the regional director (compliance) in 
accordance with paragraph (a)(4) of this section describing the 
additional magazines and the class and quantity of explosives to be 
stored in the magazine. Unless otherwise advised by the regional 
director (compliance), additional magazines may be constructed, or 
acquired magazines may be used for the storage of explosives. Explosives 
must not be stored in a magazine under construction. The regional 
director (compliance) must be notified that construction has been 
completed.

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



                Subpart E--License and Permit Proceedings



Sec. 555.71  Opportunity for compliance.

    Except in cases of willfulness or those in which the public interest 
requires otherwise, and the regional director (compliance) so alleges in 
the notice of denial of an application or revocation of a license or 
permit, no license or permit will be revoked or renewal application 
denied without first calling to the attention of the licensee or 
permittee the reasons for the contemplated action and affording him an 
opportunity to demonstrate or achieve compliance with all lawful 
requirements and to submit facts, arguments, or proposals of adjustment. 
The notice of contemplated action, ATF F 5400.12, will afford the 
licensee or permittee 15 days from the date of receipt of the notice to 
respond. If no response is received within the 15 days, or if after 
consideration of relevant matters presented by the licensee or 
permittee, the regional director (compliance) finds that the licensee or 
permittee is not likely to abide by the law and regulations, he will 
proceed as provided in Sec. 555.74.

[T.D. ATF-87, 46 FR 40384, Aug. 7 1981, as amended by T.D. ATF-446, 66 
FR 16602, Mar. 27, 2001]



Sec. 555.72  Denial of initial application.

    Whenever the regional director (compliance) has reason to believe 
that an applicant for an original license or permit is not eligible to 
receive a license or permit under the provisions of Sec. 555.49, he 
shall issue a notice of denial on ATF F 5400.11. The notice will set 
forth the matters of fact and law relied upon in determining that the 
application should be denied, and will afford the applicant 15 days from 
the date of receipt of the notice in which to request a hearing to 
review the denial. If no request for a hearing is filed within that 
time, a copy of the application, marked ``Disapproved'', will be 
returned to the applicant.



Sec. 555.73  Hearing after initial application is denied.

    If the applicant for an original license or permit desires a 
hearing, he

[[Page 222]]

shall file a request with the regional director (compliance) within 15 
days after receipt of the notice of denial. The request should include a 
statement of the reasons for a hearing. On receipt of the request, the 
regional director (compliance) shall refer the matter to an 
administrative law judge who shall set a time and place (see 
Sec. 555.77) for a hearing and shall serve notice of the hearing upon 
the applicant and the regional director (compliance) at least 10 days in 
advance of the hearing date. The hearing will be conducted in accordance 
with the hearing procedures prescribed in part 71 of this chapter (see 
Sec. 555.82). Within a reasonable time after the conclusion of the 
hearing, and as expeditiously as possible, the administrative law judge 
shall render his recommended decision. He shall certify to the complete 
record of the proceedings before him and shall immediately forward the 
complete certified record, together with four copies of his recommended 
decision, to the regional director (compliance) for decision.



Sec. 555.74  Denial of renewal application or revocation of license or permit.

    If following the opportunity for compliance under Sec. 555.71, or 
without opportunity for compliance under Sec. 555.71, as circumstances 
warrant, the regional director (compliance) finds that the licensee or 
permittee is not likely to comply with the law or regulations or is 
otherwise not eligible to continue operations authorized under his 
license or permit, the regional director (compliance) shall issue a 
notice of denial of the renewal application or revocation of the license 
or permit, ATF F 5400.11 or ATF F 5400.10, as appropriate. In either 
case, the notice will set forth the matters of fact constituting the 
violations specified, dates, places, and the sections of law and 
regulations violated. The notice will, in the case of revocation of a 
license or permit, specify the date on which the action is effective, 
which date will be on or after the date the notice is served on the 
licensee or permittee. The notice will also advise the licensee or 
permittee that he may, within 15 days after receipt of the notice, 
request a hearing and, if applicable, a stay of the effective date of 
the revocation of his license or permit.



Sec. 555.75  Hearing after denial of renewal application or revocation of license or permit.

    If a licensee or permittee whose renewal application has been denied 
or whose license or permit has been revoked desires a hearing, he shall 
file a request for a hearing with the regional director (compliance). In 
the case of the revocation of a license or permit, he may include a 
request for a stay of the effective date of the revocation. On receipt 
of the request the regional director (compliance) shall advise the 
licensee or permittee whether the stay of the effective date of the 
revocation is granted. If the stay of the effective date of the 
revocation is granted, the regional director (compliance) shall refer 
the matter to an administrative law judge who shall set a time and place 
(see Sec. 555.77) for a hearing and shall serve notice of the hearing 
upon the licensee or permittee and the regional director (compliance) at 
least 10 days in advance of the hearing date. If the stay of the 
effective date of the revocation is denied, the licensee or permittee 
may request an immediate hearing. In this event, the regional director 
(compliance) shall immediately refer the matter to an administrative law 
judge who shall set a date and place for a hearing, which date shall be 
no later than 10 days from the date the licensee or permittee requested 
an immediate hearing. The hearing will be held in accordance with the 
applicable provisions of part 71 of this chapter. Within a reasonable 
time after the conclusion of the hearing, and as expeditiously as 
possible, the administrative law judge shall render his decision. He 
shall certify to the complete record of the proceeding before him and 
shall immediately forward the complete certified record, together with 
two copies of his decision, to the regional director (compliance), serve 
one copy of his decision on the licensee or permittee or his counsel, 
and transmit a copy to the attorney for the Government.

[[Page 223]]



Sec. 555.76  Action by regional director (compliance).

    (a) Initial application proceedings. If, upon receipt of the record 
and the recommended decision of the administrative law judge, the 
regional director (compliance) decides that the license or permit should 
be issued, the regional director (compliance) shall cause the 
application to be approved, briefly stating, for the record, his 
reasons. If he contemplates that the denial should stand, he shall serve 
a copy of the administrative law judge's recommended decision on the 
applicant, informing the applicant of his contemplated action and 
affording the applicant not more than 10 days in which to submit 
proposed findings and conclusions or exceptions to the recommended 
decision with supporting reasons. If the regional director (compliance), 
after consideration of the record of the hearing and of any proposed 
findings, conclusions, or exceptions filed with him by the applicant, 
approves the findings, conclusions and recommended decision of the 
administrative law judge, the regional director (compliance) shall cause 
the license or permit to be issued or disapproved the application 
accordingly. If he disapproves the findings, conclusions, and 
recommendation of the administrative law judge, in whole or in part, he 
shall by order make such findings and conclusions as in his opinion are 
warranted by the law and the facts in the record. Any decision of the 
regional director (compliance) ordering the disapproval of an initial 
application for a license or permit shall state the findings and 
conclusions upon which it is based, including his ruling upon each 
proposed finding, conclusion, and exception to the administrative law 
judge's recommended decision, together with a statement of his findings 
and conclusions, and reasons or basis for his findings and conclusions, 
upon all material issues of fact, law or discretion presented on the 
record. A signed duplicate original of the decision will be served upon 
the applicant and the original copy containing certificate of service 
will be placed in the official record of the proceedings. If the 
decision of the regional director (compliance) is in favor of the 
applicant, he shall issue the license or permit, to be effective on 
issuance.
    (b) Renewal application and revocation proceedings. Upon receipt of 
the complete certified records of the hearing, the regional director 
(compliance) shall enter an order confirming the revocation of the 
license or permit, or disapproving the application, in accordance with 
the administrative law judge's findings and decision, unless he 
disagrees with the findings and decision. A signed duplicate original of 
the order, ATF F 5400.9, will be served upon the licensee or permittee 
and the original copy containing certificate of service will be placed 
in the official record of the proceedings. If the regional director 
(compliance) disagrees with the findings and decision of the 
administrative law judge, he shall file a petition with the Director for 
review of the findings and decision, as provided in Sec. 555.79. In 
either case, if the renewal application denial is sustained, a copy of 
the application marked ``Disapproved'' will be returned to the 
applicant. If the renewal application denial is reversed, a license or 
permit will be issued to become effective on expiration of the license 
or permit being renewed, or on the date of issuance, whichever is later. 
If the proceedings involve the revocation of a license or permit which 
expired before a decision is in favor of the licensee or permittee, the 
regional director (compliance) shall:
    (1) If renewal application was timely filed and a stay of the 
effective date of the revocation was granted, cause to be issued a 
license or permit effective on the date of issuance;
    (2) If renewal application was not timely filed but a stay of the 
effective date of the revocation had been granted, request that a 
renewal application be filed and, following that, cause to be issued a 
license or permit to be effective on issuance; or
    (3) If a stay of the effective date of the revocation had not been 
granted, request that an application be filed as provided in 
Sec. 555.45, and process it in the same manner as for an application for 
an original license or permit.
    (c) Curtailment of stay of revocation effective date. If, after 
approval of a request for a stay of the effective date of

[[Page 224]]

an order revoking a license or permit but before actions are completed 
under this subpart, the regional director (compliance) finds that it is 
contrary to the public interest for the licensee or permittee to 
continue the operations or activities covered by his license or permit, 
the regional director (compliance) may issue a notice of withdrawal of 
the approval, effective on the date of issuance. Notice of withdrawal 
will be served upon the licensee or permittee in the manner provided in 
Sec. 555.81.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.77  Designated place of hearing.

    The designated place of hearing set as provided in Sec. 555.73 or 
Sec. 555.75, will be at the location convenient to the aggrieved party.



Sec. 555.78  Representation at a hearing.

    An applicant, licensee, or permittee may be represented by an 
attorney, certified public accountant, or other person recognized to 
practice before the Bureau of Alcohol, Tobacco and Firearms as provided 
in 31 CFR Part 8, if he has otherwise complied with the applicable 
requirements of of 26 CFR 601.521 through 601.527. The regional director 
(compliance) shall be represented in proceedings under Secs. 555.73 and 
555.75 by an attorney in the office of the chief counsel or regional 
counsel who is authorized to execute and file motions, briefs, and other 
papers in the proceedings, on behalf of the regional director 
(compliance), in his own name as ``Attorney for the Government''.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-92, 46 
FR 46916, Sept. 23, 1981]



Sec. 555.79  Appeal on petition to the Director.

    An appeal to the Director is not required prior to filing an appeal 
with the U.S. Court of Appeals for judicial review. An appeal may be 
taken by the applicant, licensee, or permittee to the Director from a 
decision resulting from a hearing under Sec. 555.73 or Sec. 555.75. An 
appeal may also be taken by a regional director (compliance) from a 
decision resulting from a hearing under Sec. 555.75 as provided in 
Sec. 555.76(b). The appeal shall be taken by filing a petition for 
review on appeal with the Director within 15 days of the service of an 
administrative law judge's decision or an order. The petition will set 
forth facts tending to show (a) action of an arbitrary nature, (b) 
action without reasonable warrant in fact, or (c) action contrary to law 
and regulations. A copy of the petition will be filed with the regional 
director (compliance) or served on the applicant, licensee, or 
permittee, as the case may be. In the event of appeal, the regional 
director (compliance) shall immediately forward the complete original 
record, by certified mail, to the Director for his consideration, 
review, and disposition as provided in subpart I of part 71 of this 
chapter. When, on appeal, the Director affirms the initial decision of 
the regional director (compliance) or the administrative law judge, as 
the case may be, the initial decision will be final.



Sec. 555.80  Court review.

    An applicant, licensee, or permittee may, within 60 days after 
receipt of the decision of the administrative law judge or the final 
order of the regional director (compliance) or the Director, file a 
petition for a judicial review of the decision, with the U.S. Court of 
Appeals for the district in which he resides or has his principal place 
of business. The Director, upon notification that a petition has been 
filed, shall have prepared a complete transcript of the record of the 
proceedings. The regional director (compliance) or the Director, as the 
case may be, shall certify to the correctness of the transcript of the 
record, forward one copy to the attorney for the Government in the 
review of the case, and file the original record of the proceedings with 
the original certificate in the U.S. Court of Appeals.



Sec. 555.81  Service on applicant, licensee, or permittee.

    All notices and other formal documents required to be served on an 
applicant, licensee, or permittee under this subpart will be served by 
certified mail or by personal delivery. Where service is by personal 
delivery, the

[[Page 225]]

signed duplicate original copy of the formal document will be delivered 
to the applicant, licensee, or permittee, or, in the case of a 
corporation, partnership, or association, by delivering it to an 
officer, manager, or general agent, or to its attorney of record.



Sec. 555.82  Provisions of part 200 made applicable.

    The provisions of subpart G of part 200 of this chapter, as well as 
those provisions of part 71 relative to failure to appear, withdrawal of 
an application or surrender of a permit, the conduct of hearings before 
an administrative law judge, and record of testimony, are hereby made 
applicable to application, license, and permit proceedings under this 
subpart to the extent that they are not contrary to or incompatible with 
this subpart.



Sec. 555.83  Operations by licensees or permittees after notice of denial or revocation.

    In any case where a notice of revocation has been issued and a 
request for a stay of the effective date of the revocation has not been 
granted, the licensee or permittee shall not engage in the activities 
covered by the license or permit pending the outcome of proceedings 
under this subpart. In any case where notice of revocation has been 
issued but a stay of the effective date of the revocation has been 
granted, the licensee or permittee may continue to engage in the 
activities covered by his license or permit unless, or until, formally 
notified to the contrary: Provided, That in the event the license or 
permit would have expired before proceedings under this subpart are 
completed, timely renewal application must have been filed to continue 
the license or permit beyond its expiration date. In any case where a 
notice of denial of a renewal application has been issued, the licensee 
or permittee may continue to engage in the activities covered by the 
existing license or permit after the date of expiration of the license 
or permit until proceedings under this subpart are completed.



              Subpart F--Conduct of Business or Operations



Sec. 555.101  Posting of license or user permit.

    A license or user permit issued under this part, or a copy of a 
license or user permit, will be posted and available for inspection on 
the business premises at each place where explosive materials are 
manufactured, imported, or distributed.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF-487, 
68 FR 3748, Jan. 24, 2003. ATF No. 1, 68 FR 13786, Mar. 20, 2003]



Sec. 555.102  Authorized operations by permittees.

    (a) In general. A permit issued under this part does not authorize 
the permittee to engage in the business of manufacturing, importing, or 
dealing in explosive materials. Accordingly, if a permittee's operations 
bring him within the definition of manufacturer, importer, or dealer 
under this part, he shall qualify for the appropriate license.
    (b) Distributions of surplus stocks. (1) Distributions of surplus 
stocks prior to May 24, 2003. Permittees are not authorized to engage in 
the business of sale or distribution of explosive materials. However, 
permittees may dispose of surplus stocks of explosive materials to other 
licensees or permittees in accordance with Sec. 555.103, and to 
nonlicensees or to nonpermittees in accordance with Sec. 555.105(a)(4).
    (2) Distributions of surplus stocks on and after May 24, 2003. 
Permittees are not authorized to engage in the business of sale or 
distribution of explosive materials. However, permittees may dispose of 
surplus stocks of explosive materials to other licensees or permittees 
in accordance with Sec. 555.103 and Sec. 555.105.

[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998, as amended by ATF No. 1, 68 
FR 13787, Mar. 20, 2003]



Sec. 555.103  Transactions among licensees/permittees and transactions among licensees and holders of user permits.

    (a) Transactions among licensees/permittees prior to May 24, 2003. 
(1) General.

[[Page 226]]

(i) A licensed importer, licensed manufacturer or licensed dealer 
selling or otherwise distributing explosive materials (or a permittee 
disposing of surplus stock to a licensee or another permittee) who has 
the certified information required by this section may sell or 
distribute explosive materials to a licensee or permittee for not more 
than 45 days following the expiration date of the distributee's license 
or permit, unless the distributor knows or has reason to believe that 
the distributee's authority to continue business or operations under 
this part has been terminated.
    (ii) A licensed importer, licensed manufacturer or licensed dealer 
selling or otherwise distributing explosive materials (or a permittee 
disposing of surplus stock to another licensee or permittee) must verify 
the license or permit status of the distributee prior to the release of 
explosive materials ordered, as required by this section.
    (iii) Licensees or permittees desiring to return explosive materials 
to a licensed manufacturer may do so without obtaining a certified copy 
of the manufacturer's license.
    (iv) Where possession of explosive materials is transferred at the 
distributor's premises, the distributor must in all instances verify the 
identity of the person accepting possession on behalf of the distributee 
before relinquishing possession. Before the delivery at the 
distributor's premises of explosive materials to an employee of a 
licensee or permittee, or to an employee of a common or contract carrier 
transporting explosive materials to a licensee or permittee, the 
distributor delivering explosive materials must obtain an executed ATF F 
5400.8, Explosives Delivery Record, from the employee before releasing 
the explosive materials. The ATF F 5400.8 must contain all of the 
information required on the form and required by this part.

    Example 1. An ATF F 5400.8 is required when:
    a. An employee of the purchaser takes possession at the 
distributor's premises.
    b. An employee of a common or contract carrier hired by the 
purchaser takes possession at the distributor's premises.
    Example 2. An ATF F 5400.8 is not required when:
    a. An employee of the distributor takes possession of the explosives 
for the purpose of transport to the purchaser.
    b. An employee of a common or contract carrier hired by the 
distributor takes possession of the explosives for the purpose of 
transport to the purchaser.

    (2) License/permit verification of individuals. (i) The distributee 
must furnish a certified copy (or, in the case of a user-limited, the 
original) of the license or permit. The certified copy need be furnished 
only once during the current term of the license or permit. Also, a 
licensee need not furnish certified copies of licenses to other licensed 
locations operated by such licensee.
    (ii) The distributor may obtain any additional verification as the 
distributor deems necessary.
    (3) License/permit verification of business organizations. (i) A 
business organization may (in lieu of furnishing a certified copy of a 
license) furnish the distributor a certified list which contains the 
name, address, license number and date of license expiration of each 
licensed location. The certified list need be furnished only once during 
the current term of the license or permit. Also, a business organization 
need not furnish a certified list to other licensed locations operated 
by such business organization.
    (ii) A business organization must, prior to ordering explosive 
materials, furnish the licensee or permittee a current certified list of 
the representatives or agents authorized to order explosive materials on 
behalf of the business organization showing the name, address, and date 
and place of birth of each representative or agent. A licensee or 
permittee may not distribute explosive materials to a business 
organization on the order of a person who does not appear on the 
certified list of representatives or agents and, if the person does 
appear on the certified list, the licensee or permittee must verify the 
identity of such person.
    (4) Licensee/permittee certified statement. (i) A licensee or 
permittee ordering explosive materials from another licensee or 
permittee must furnish a current, certified statement of the intended 
use of the explosive materials, e.g., resale, mining, quarrying, 
agriculture, construction, sport rocketry,

[[Page 227]]

road building, oil well drilling, seismographic research, to the 
distributor.
    (ii) For individuals, the certified statement of intended use must 
specify the name, address, date and place of birth, and social security 
number of the distributee.
    (iii) For business organizations, the certified statement of 
intended use must specify the taxpayer identification number, the 
identity and the principal and local places of business.
    (iv) The licensee or permittee purchasing explosive materials must 
revise the furnished copy of the certified statement only when the 
information is no longer current.
    (5) User-limited permit transactions. A user-limited permit issued 
under the provisions of this part is valid for only a single purchase 
transaction and is not renewable (see Sec. 555.51). Accordingly, at the 
time a user-limited permittee orders explosive materials, the licensed 
distributor must write on the front of the user-limited permit the 
transaction date, his signature, and the distributor's license number 
prior to returning the permit to the user-limited permittee.
    (b) Transactions among licensees/permittees on and after May 24, 
2003. (1) General. (i) A licensed importer, licensed manufacturer or 
licensed dealer selling or otherwise distributing explosive materials 
(or a holder of a user permit disposing of surplus stock to a licensee; 
a holder of a user permit; or a holder of a limited permit who is within 
the same State as the distributor) who has the certified information 
required by this section may sell or distribute explosive materials to a 
licensee or permittee for not more than 45 days following the expiration 
date of the distributee's license or permit, unless the distributor 
knows or has reason to believe that the distributee's authority to 
continue business or operations under this part has been terminated.
    (ii) A licensed importer, licensed manufacturer or licensed dealer 
selling or otherwise distributing explosive materials (or a holder of a 
user permit disposing of surplus stock to another licensee or permittee) 
must verify the license or permit status of the distributee prior to the 
release of explosive materials ordered, as required by this section.
    (iii) Licensees or permittees desiring to return explosive materials 
to a licensed manufacturer may do so without obtaining a certified copy 
of the manufacturer's license.
    (2) Verification of license/user permit. (i) Prior to or with the 
first order of explosive materials, the distributee must provide the 
distributor a certified copy (or, in the case of a user-limited, the 
original) of the distributee's license or user permit. However, 
licensees or holders of user permits that are business organizations may 
(in lieu of a certified copy of a license or user permit) provide the 
distributor with a certified list that contains the name, address, 
license or user permit number, and date of the license or user permit 
expiration of each location.
    (ii) The distributee must also provide the distributor with a 
current list of the names of persons authorized to accept delivery of 
explosive materials on behalf of the distributee. The distributee 
ordering explosive materials must keep the list current and provide 
updated lists to licensees and holders of user permits on a timely 
basis. A distributor may not transfer possession of explosive materials 
to any person whose name does not appear on the current list of names of 
persons authorized to accept delivery of explosive materials on behalf 
of the distributee. In all instances, the distributor must verify the 
identity of the person accepting possession of explosive materials on 
behalf of the distributee by examining an identification document (as 
defined in Sec. 555.11) before relinquishing possession.
    (iii) A licensee or holder of a user permit ordering explosive 
materials from another licensee or permittee must provide to the 
distributor a current, certified statement of the intended use of the 
explosive materials, e.g., resale, mining, quarrying, agriculture, 
construction, sport rocketry, road building, oil well drilling, 
seismographic research, etc.
    (A) For individuals, the certified statement of intended use must 
specify the name, address, date and place of birth, and social security 
number of the distributee.

[[Page 228]]

    (B) For business organizations, the certified statement of intended 
use must specify the taxpayer identification number, the identity and 
the principal and local places of business.
    (C) The licensee or holder of a user permit purchasing explosive 
materials must revise the furnished copy of the certified statement only 
when the information is no longer current.
    (3) Delivery of explosive materials by a common or contract carrier. 
When a common or contract carrier will transport explosive materials 
from a distributor to a distributee who is a licensee or holder of a 
user permit, the distributor must obtain an executed ATF F 5400.8, 
Explosives Delivery Record, from the common or contract carrier before 
relinquishing possession of the explosive materials.
    (i) The common or contract carrier must complete Section A of Form 
5400.8.
    (ii) The distributor must verify the identity of the person 
accepting possession for the common or contract carrier by examining an 
identification document (as defined in Sec. 555.11) and noting in 
Section B of Form 5400.8 the type of document presented. The distributor 
must complete all other information required on Form 5400.8.
    (iii) The distributor must maintain Form 5400.8 in his permanent 
records in accordance with Sec. 555.121.
    (4) User-limited permit transactions. A user-limited permit issued 
under the provisions of this part is valid for only a single purchase 
transaction and is not renewable (see Sec. 555.51). Accordingly, at the 
time a user-limited permittee orders explosive materials, the licensed 
distributor must write on the front of the user-limited permit the 
transaction date, his signature, and the distributor's license number 
prior to returning the permit to the user-limited permittee.

(Approved by the Office of Management and Budget under control number 
1140-0079)

[ATF No. 1, 68 FR 13787, Mar. 20, 2003]



Sec. 555.104  Certified copy of license or permit.

    Except as provided in Sec. 555.49(a), each person issued a license 
or permit under this part shall be furnished together with his license 
or permit a copy for his certification. If a person desires an 
additional copy of his license or permit for certification and for use 
under Sec. 555.103, he shall:
    (a) Make a reproduction of the copy of his license or permit and 
execute the certification on it;
    (b) Make a reproduction of his license or permit, enter on the 
reproduction the statement: ``I certify that this is a true copy of a 
(insert the word license or permit) issued to me to engage in the 
specified business or operations'', and sign his name next to the 
statement; or
    (c) Submit a request, in writing, for certified copies of his 
license or permit to the Chief, Firearms and Explosives Licensing 
Center. The request will show the name, trade name (if any), and address 
of the licensee or permittee and the number of copies of the license or 
permit desired. There is a fee of $1 for each copy of a license or 
permit issued by the Chief, Firearms and Explosives Licensing Center 
under this paragraph. Fee payment must accompany each request for 
additional copies of a license or permit. The fee must be paid by (1) 
cash, or (2) money order or check made payable to the Bureau of Alcohol, 
Tobacco and Firearms.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 
FR 53054, Dec. 27, 1989]



Sec. 555.105  Distributions to nonlicensees, nonpermittees, and limited permittees.

    (a) Distributions to nonlicensees and nonpermittees prior to May 24, 
2003. (1) This section will apply in any case where distribution of 
explosive materials to the distributee is not otherwise prohibited by 
the Act or this part.
    (2) Except as provided in paragraph (a)(3) of this section, a 
licensed importer, licensed manufacturer, or licensed dealer may 
distribute explosive materials to a nonlicensee or nonpermittee if the 
nonlicensee or nonpermittee is a resident of the same State in which the 
licensee's business premises are located, and the nonlicensee or 
nonpermittee furnishes to the licensee the explosives transaction 
record, ATF F 5400.4, required by Sec. 555.126. Disposition of ATF F 
5400.4 will be made in accordance with Sec. 555.126.

[[Page 229]]

    (3) A licensed importer, licensed manufacturer, or licensed dealer 
may sell or distribute explosive materials to a resident of a State 
contiguous to the State in which the licensee's place of business is 
located if the purchaser's State of residence has enacted legislation, 
currently in force, specifically authorizing a resident of that State to 
purchase explosive materials in a contiguous State and the purchaser and 
the licensee have, prior to the distribution of the explosive materials, 
complied with all the requirements of paragraphs (a)(2), (a)(5), and 
(a)(6) of this section applicable to intrastate transactions occurring 
on the licensee's business premises.
    (4) A permittee may dispose of surplus stocks of explosive materials 
to a nonlicensee or nonpermittee if the nonlicensee or nonpermittee is a 
resident of the same State in which the permittee's business premises or 
operations are located, or is a resident of a State contiguous to the 
State in which the permittee's place of business or operations are 
located, and if the requirements of paragraphs (a)(2), (a)(3), (a)(5), 
and (a)(6) of this section are fully met.
    (5) A licensed importer, licensed manufacturer, or licensed dealer 
selling or otherwise distributing explosive materials to a business 
entity must verify the identity of the representative or agent of the 
business entity who is authorized to order explosive materials on behalf 
of the business entity. Each business entity ordering explosive 
materials must furnish the distributing licensee prior to or with the 
first order of explosive materials a current certified list of the names 
of representatives or agents authorized to order explosive materials on 
behalf of the business entity. The business entity ordering explosive 
materials is responsible for keeping the certified list current. A 
licensee may not distribute explosive materials to a business entity on 
the order of a person whose name does not appear on the certified list.
    (6) Where the possession of explosive materials is transferred at 
the distributor's premises, the distributor must in all instances verify 
the identity of the person accepting possession on behalf of the 
distributee before relinquishing possession. Before the delivery at the 
distributor's premises of explosive materials to an employee of a 
nonlicensee or nonpermittee, or to an employee of a common or contract 
carrier transporting explosive materials to a nonlicensee or 
nonpermittee, the distributor delivering explosive materials must obtain 
an executed ATF F 5400.8 from the employee before releasing the 
explosive materials. The ATF F 5400.8 must contain all of the 
information required on the form and by this part. (See examples in 
Sec. 555.103(a)).
    (7) A licensee or permittee disposing of surplus stock may sell or 
distribute commercially manufactured black powder in quantities of 50 
pounds or less to a nonlicensee or nonpermittee if the black powder is 
intended to be used solely for sporting, recreational, or cultural 
purposes in antique firearms as defined in 18 U.S.C. 921(a)(16), or in 
antique devices as exempted from the term ``destructive device'' in 18 
U.S.C. 921(a)(4).
    (b) Distributions to holders of limited permits on and after May 24, 
2003. (1) This section will apply in any case where distribution of 
explosive materials to the distributee is not otherwise prohibited by 
the Act or this part.
    (2) A licensed importer, licensed manufacturer or a licensed dealer 
may distribute explosive materials to a holder of a limited permit if 
such permittee is a resident of the same State in which the licensee's 
business premises are located, the holder of the limited permit presents 
in person or by mail ATF Form 5400.4, Limited Permittee Transaction 
Report (LPTR), and the licensee completes Form 5400.4 in accordance with 
Sec. 555.126(b). In no event will a licensee distribute explosive 
materials to a holder of a limited permit unless the holder presents a 
Form 5400.4 with an original unaltered and unexpired Intrastate Purchase 
of Explosives Coupon (IPEC), ATF Form 5400.30, affixed. The coupon must 
bear the name, address, permit number, and the coupon number of the 
limited permittee seeking distribution of the explosives.
    (3) A holder of a limited permit is authorized to receive explosive 
materials from a licensee or permittee whose premises are located in the 
same State of residence in which the premises of

[[Page 230]]

the holder of the limited permit are located on no more than 6 separate 
occasions during the one-year period of the permit. For purposes of this 
section, the term ``6 separate occasions'' means six deliveries of 
explosive materials. Each delivery must--
    (i) Relate to a single purchase transaction made on one ATF F 
5400.4;
    (ii) Be referenced on one commercial invoice or purchase order; and
    (iii) Be delivered to the holder of the limited permit in one 
shipment delivered at the same time.
    (4) A holder of a user permit may dispose of surplus stocks of 
explosive materials to a licensee or holder of a user permit, or a 
holder of a limited permit who is a resident of the same State in which 
the premises of the holder of the user permit are located. A holder of a 
limited permit may dispose of surplus stocks of explosive materials to 
another holder of a limited permit who is a resident of the same State 
in which the premises of the distributor are located, if the transaction 
complies with the requirements of paragraph (b)(2) of this section and 
Sec. 555.126(b). A holder of a limited permit may also dispose of 
surplus stocks of explosive materials to a licensee or holder of a user 
permit if the disposition occurs in the State of residence of the holder 
of the limited permit. (See Sec. 555.103.)
    (5) Each holder of a limited permit ordering explosive materials 
must furnish the distributing licensee prior to or with the first order 
of the explosive materials a current list of the names of employees 
authorized to accept delivery of explosive materials on behalf of the 
limited permittee. The distributee ordering explosive materials must 
keep the list current and provide updated lists to licensees and holders 
of user permits on a timely basis. A licensed importer, licensed 
manufacturer, licensed dealer, or permittee, selling or otherwise 
distributing explosive materials to a holder of a limited permit must, 
prior to delivering the explosive materials, obtain from the limited 
permittee a current list of persons who are authorized to accept 
deliveries of explosive materials on behalf of the limited permittee. A 
licensee or permittee may not deliver explosive materials to a person 
whose name does not appear on the list.
    (6)(i) Delivery at the distributor's premises. Where possession of 
explosive materials is transferred directly to the distributee at the 
distributor's premises, the distributor must obtain an executed Form 
5400.4 in accordance with Sec. 555.126(b) and must in all instances 
verify the identity of the person accepting possession on behalf of the 
distributee by examining an identification document (as defined in 
Sec. 555.11) before relinquishing possession.
    (ii) Delivery by distributor. Where possession of explosive 
materials is transferred by the distributor to the distributee away from 
the distributor's premises, the distributor must obtain an executed Form 
5400.4 in accordance with Sec. 555.126(b) and must in all instances 
verify the identity of the person accepting possession on behalf of the 
distributee by examining an identification document (as defined in 
Sec. 555.11) before relinquishing possession.
    (iii) Delivery by common or contract carrier hired by the 
distributor. Where a common or contract carrier hired by the distributor 
will transport explosive materials from the distributor to a holder of a 
limited permit, the limited permittee will, prior to delivery of the 
explosive materials, complete the appropriate section on Form 5400.4, 
affix to the Form 5400.4 one of the six IPECs he has been issued, and 
provide the form to the distributor in person or by mail. Before the 
delivery at the distributor's premises of explosive materials to the 
common or contract carrier who will transport explosive materials to a 
limited permittee, the distributor must obtain an executed ATF Form 
5400.8, Explosives Delivery Record, from the common or contract carrier 
before releasing the explosive materials. Form 5400.8 must contain all 
of the information required on the form and by this part. At the time of 
delivery the common or contract carrier, as agent for the distributor, 
must verify the identity of the person accepting delivery on behalf of 
the distributee, note the type and number of the identification document 
and provide this information to the distributor. The distributor will 
enter this information in the appropriate section on Form 5400.4.

[[Page 231]]

Form 5400.8 must be attached to the distributor's copy of the Form 
5400.4 and retained in his permanent records in accordance with 
Sec. 555.121.
    (iv) Delivery by common or contract carrier hired by the 
distributee. Where a common or contract carrier hired by the distributee 
will transport explosive materials from the distributor to the holder of 
a limited permit, the holder of the limited permit will, prior to 
delivery of the explosive materials, complete the appropriate section on 
Form 5400.4, affix to the Form 5400.4 one of the six IPECs he has been 
issued, and provide the form to the distributor in person or by mail. 
Before the delivery at the distributor's premises to the common or 
contract carrier who will transport explosive materials to the holder of 
a limited permit, the distributor must obtain an executed ATF Form 
5400.8, Explosives Delivery Record, from the common or contract carrier 
before releasing the explosive materials. Form 5400.8 must contain all 
of the information required on the form and by this part. Form 5400.8 
must be attached to the distributor's copy of the Form 5400.4 and 
retained in his permanent records in accordance with Sec. 555.121.
    (7) A licensee or permittee disposing of surplus stock may sell or 
distribute commercially manufactured black powder in quantities of 50 
pounds or less to a holder of a limited permit, nonlicensee, or 
nonpermittee if the black powder is intended to be used solely for 
sporting, recreational, or cultural purposes in antique firearms as 
defined in 18 U.S.C. 921(a)(16), or in antique devices as exempted from 
the term ``destructive device'' in 18 U.S.C. 921(a)(4).

(Approved by the Office of Management and Budget under control number 
1140-0075)

[ATF No. 1, 68 FR 13788, Mar. 20, 2003]



Sec. 555.106  Certain prohibited distributions.

    (a) A licensee or permittee may not distribute explosive materials 
to any person except--
    (1) A licensee;
    (2) A holder of a user permit; or
    (3) A holder of a limited permit who is a resident of the State 
where distribution is made and in which the premises of the transferor 
are located.
    (b) A licensee shall not distribute any explosive materials to any 
person:
    (1) Who the licensee knows is less than 21 years of age;
    (2) In any State where the purchase, possession, or use by a person 
of explosive materials would be in violation of any State law or any 
published ordinance applicable at the place of distribution;
    (3) Who the licensee has reason to believe intends to transport the 
explosive materials into a State where the purchase, possession, or use 
of explosive materials is prohibited or which does not permit its 
residents to transport or ship explosive materials into the State or to 
receive explosive materials in the State; or
    (4) Who the licensee has reasonable cause to believe intends to use 
the explosive materials for other than a lawful purpose.
    (c) A licensee shall not distribute any explosive materials to any 
person knowing or having reason to believe that the person:
    (1) Is, except as provided under Sec. 555.142 (d) and (e), under 
indictment or information for, or was convicted in any court of, a crime 
punishable by imprisonment for a term exceeding 1 year;
    (2) Is a fugitive from justice;
    (3) Is an unlawful user of marijuana, or any depressant or stimulant 
drug, or narcotic drug (as these terms are defined in the Controlled 
Substances Act, 21 U.S.C. 802);
    (4) Was adjudicated as a mental defective or was committed to a 
mental institution;
    (5) Is an alien, other than an alien who--
    (i) Is lawfully admitted for permanent residence (as that term is 
defined in section 101(a)(20) of the Immigration and Nationality Act (8 
U.S.C. 1101));
    (ii) Is in lawful nonimmigrant status, is a refugee admitted under 
section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or 
is in asylum status under section 208 of the Immigration and Nationality 
Act (8 U.S.C. 1158), and--
    (A) Is a foreign law enforcement officer of a friendly foreign 
government, as

[[Page 232]]

determined by the Attorney General in consultation with the Secretary of 
State, entering the United States on official law enforcement business, 
and the shipping, transporting, possession, or receipt of explosive 
materials is in furtherance of this official law enforcement business;
    (B) Is a person having the power to direct or cause the direction of 
the management and policies of a corporation, partnership, or 
association licensed pursuant to section 843(a), and the shipping, 
transporting, possession, or receipt of explosive materials is in 
furtherance of such power;
    (C) Is a member of a North Atlantic Treaty Organization (NATO) or 
other friendly foreign military force, as determined by the Attorney 
General in consultation with the Secretary of Defense, (whether or not 
admitted in a nonimmigrant status) who is present in the United States 
under military orders for training or other military purpose authorized 
by the United States, and the shipping, transporting, possession, or 
receipt of explosive materials is in furtherance of the military 
purpose; or
    (D) Is lawfully present in the United States in cooperation with the 
Director of Central Intelligence, and the shipment, transportation, 
receipt, or possession of the explosive materials is in furtherance of 
such cooperation;
    (6) Has been discharged from the armed forces under dishonorable 
conditions; or
    (7) Having been a citizen of the United States, has renounced 
citizenship.
    (d) The provisions of this section do not apply to the purchase of 
commercially manufactured black powder in quantities not to exceed 50 
pounds, intended to be used solely for sporting, recreational, or 
cultural purposes in antique firearms or in antique devices, if the 
requirements of Sec. 555.105(a)(7) or (b)(7) are fully met.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF-487, 
68 FR 3748, Jan. 24, 2003. ATF No. 1, 68 FR 13790, Mar. 20, 2003]



Sec. 555.107  Record of transactions.

    Each licensee and permittee shall keep records of explosive 
materials as required by subpart G of this part.



Sec. 555.108  Importation.

    (a) Explosive materials imported or brought into the United States 
by a licensed importer or holder of a user permit may be released from 
customs custody to the licensed importer or holder of a user permit upon 
proof of his status as a licensed importer or holder of a user permit. 
Proof of status must be made by the licensed importer or holder of a 
user permit furnishing to the customs officer a certified copy of his 
license or permit (see Sec. 555.103).
    (b) A nonlicensee or nonpermittee may import or bring into the 
United States commercially manufactured black powder in quantities not 
to exceed 50 pounds. Upon submitting to the customs officer completed 
ATF F 5400.3, certifying that the black powder is intended to be used 
solely for sporting, recreational, or cultural purposes in antique 
firearms or in antique devices, black powder may be released from 
customs custody. The disposition of the executed ATF F 5400.3 will be in 
accordance with the instructions on the form.
    (c) The provisions of this section are in addition to, and are not 
in lieu of, any applicable requirement under 27 CFR Part 447.
    (d) For additional requirements relating to the importation of 
plastic explosives into the United States on or after April 24, 1997, 
see Sec. 555.183.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8376, Feb. 25, 1997; ATF No. 1, 68 FR 13790, Mar. 20, 2003]



Sec. 555.109  Identification of explosive materials.

    (a) Each licensed manufacturer of explosive materials shall legibly 
identify by marking all explosive materials he manufactures for sale or 
distribution. The marks required by this section must identify the 
manufacturer and the location, date, and shift of manufacture. The 
licensed manufacturer shall place on each cartridge, bag, or other 
immediate container of explosive materials manufactured for sale or 
distribution the required mark which shall also be placed on the outside 
container, if any, used for their packaging.
    (b) Exceptions. (1) Licensed manufacturers of blasting caps are only 
required to place the identification

[[Page 233]]

marks prescribed in paragraph (a) on the containers used for the 
packaging of blasting caps.
    (2) The Director may authorize other means of identifying explosive 
materials upon receipt of a letter application from the licensed 
manufacturer showing that other identification is reasonable and will 
not hinder the effective administration of this part.
    (3) The Director may authorize the use of other means of 
identification on fireworks instead of marks prescribed in paragraph (a) 
of this section.



Sec. 555.110  Furnishing of samples (Effective on and after January 24, 2003).

    (a) In general. Licensed manufacturers and licensed importers and 
persons who manufacture or import explosive materials or ammonium 
nitrate must, when required by letter issued by the Director, furnish--
    (1) Samples of such explosive materials or ammonium nitrate;
    (2) Information on chemical composition of those products; and
    (3) Any other information that the Director determines is relevant 
to the identification of the explosive materials or to identification of 
the ammonium nitrate.
    (b) Reimbursement. The Director will reimburse the fair market value 
of samples furnished pursuant to paragraph (a) of this section, as well 
as reasonable costs of shipment.

(Approved by the Office of Management and Budget under control number 
1140-0073)

[ATF No. 1, 68 FR 13790, Mar. 20, 2003]



                     Subpart G--Records and Reports



Sec. 555.121  General.

    (a)(1) Licensees and permittees shall keep records pertaining to 
explosive materials in permanent form (i.e., commercial invoices, record 
books) and in the manner required in this subpart.
    (2) Licensees and permittees shall keep records required by this 
part on the business premises for five years from the date a transaction 
occurs or until discontinuance of business or operations by the licensee 
or permittee. (See also Sec. 555.128 for discontinuance of business or 
operations.)
    (b) ATF officers may enter the premises of any licensee or holder of 
a user permit for the purpose of examining or inspecting any record or 
document required by or obtained under this part (see Sec. 555.24). 
Section 843(f) of the Act requires licensees and holders of user permits 
to make all required records available for examination or inspection at 
all reasonable times. Section 843(f) of the Act also requires licensees 
and permittees (including holders of limited permits) to submit all 
reports and information relating to all required records and their 
contents, as the regulations in this part prescribe.
    (c) Each licensee and permittee shall maintain all records of 
importation, production, shipment, receipt, sale, or other disposition, 
whether temporary or permanent, of explosive materials as the 
regulations in this part prescribe. Sections 842(f) and 842(g) of the 
Act make it unlawful for any licensee or permittee knowingly to make any 
false entry in, or fail to make entry in, any record required to be kept 
under the Act and the regulations in this part.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; ATF No. 1, 68 FR 13790, Mar. 20, 2003]



Sec. 555.122  Records maintained by licensed importers.

    (a) Each licensed importer shall take true and accurate physical 
inventories which will include all explosive materials on hand required 
to be accounted for in the records kept under this part. The licensed 
importer shall take a special inventory
    (1) At the time of commencing business, which is the effective date 
of the license issued upon original qualification under this part;
    (2) At the time of changing the location of his business to another 
region;
    (3) At the time of discontinuing business; and
    (4) At any time the regional director (compliance) may in writing 
require. Each special inventory is to be prepared in duplicate, the 
original of which is submitted to the regional director (compliance), 
and the duplicate retained by the licensed importer. If a

[[Page 234]]

special inventory specified by paragraphs (a) (1) through (4) of this 
section has not been taken during the calendar year, at least one 
physical inventory will be taken. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs (a) (1) 
through (4) of this section, will remain on file for inspection instead 
of being sent to the regional director (compliance). (See also 
Sec. 555.127.)
    (b) Each licensed importer shall, not later than the close of the 
next business day following the date of importation or other acquisition 
of explosive materials, enter the following information in a separate 
record:
    (1) Date of importation or other acquisition.
    (2) Name or brand name of manufacturer and country of manufacture.
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (c) Each licensed importer shall, not later than the close of the 
next business day following the date of distribution of any explosive 
materials to another licensee or a permittee, enter in a separate record 
the following information:
    (1) Date of disposition.
    (2) Name or brand name of manufacturer and country of manufacture.
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (d) The regional director (compliance) may authorize alternate 
records to be maintained by a licensed importer to record his 
distribution of explosive materials when it is shown by the licensed 
importer that alternate records will accurately and readily disclose the 
information required by paragraph (c) of this section. A licensed 
importer who proposes to use alternate records shall submit a letter 
application to the regional director (compliance) and shall describe the 
proposed alternate records and the need for them. Alternate records are 
not to be employed by the licensed importer until approval is received 
from the regional director (compliance).
    (e) Each licensed importer shall maintain separate records of the 
sales or other distribution made of explosive materials to nonlicensees 
or nonpermittees. These records are maintained as prescribed by 
Sec. 555.126.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-293, 55 FR 3721, Feb. 5, 1990; T.D. 
ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.123  Records maintained by licensed manufacturers.

    (a) Each licensed manufacturer shall take true and accurate physical 
inventories which will include all explosive materials on hand required 
to be accounted for in the records kept under this part. The licensed 
manufacturer shall take a special inventory
    (1) At the time of commencing business, which is the effective date 
of the license issued upon original qualification under this part;
    (2) At the time of changing the location of his premises to another 
region;
    (3) At the time of discontinuing business; and
    (4) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director 
(compliance), and the duplicate retained by the licensed manufacturer. 
If a special inventory required by paragraphs (a) (1) through (4) of 
this section has not been taken during the calendar year, at least one 
physical inventory will be taken. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs

[[Page 235]]

(a) (1) through (4) of this section, will remain on file for inspection 
instead of being sent to the regional director (compliance). (See also 
Sec. 555.127.)
    (b) Each licensed manufacturer shall not later than the close of the 
next business day following the date of manufacture or other acquisition 
of explosive materials, enter the following information in a separate 
record:
    (1) Date of manufacture or other acquisition.
    (2) Manufacturer's marks of identification.
    (3) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (4) Name, brand name or description (dynamite (dyn), blasting agents 
(ba), detonators (det), display fireworks (df), etc.) and size (length 
and diameter or diameter only of display fireworks).
    (c) Each licensed manufacturer shall, not later than the close of 
the next business day following the date of distribution of any 
explosive materials to another licensee or a permittee, enter in a 
separate record the following information:
    (1) Date of disposition.
    (2) Name or brand name of manufacturer or name of importer, as 
applicable, if acquired other than by his own manufacture.
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (d) Each licensed manufacturer who manufactures explosive materials 
for his own use shall, not later than the close of the next business day 
following the date of use, enter in a separate record the following 
information:
    (1) Date of use.
    (2) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of special fireworks, etc.).
    (3) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).

Exception: A licensed manufacturer is exempt from the recordkeeping 
requirements of this subsection if the explosive materials are 
manufactured for his own use and used within a 24 hour period at the 
same site.

    (e) The regional director (compliance) may authorize alternate 
records to be maintained by a licensed manufacturer to record his 
distribution or use of explosive materials when it is shown by the 
licensed manufacturer that alternate records will accurately and readily 
disclose the information required by paragraph (c) of this section. A 
licensed manufacturer who proposes to use alternate records shall submit 
a letter application to the regional director (compliance) and shall 
describe the proposed alternate records and the need for them. Alternate 
records are not to be employed by the licensed manufacturer until 
approval is received from the regional director (compliance).
    (f) Each licensed manufacturer shall maintain separate records of 
the sales or other distribution made of explosive materials to 
nonlicensees or nonpermittees. These records are maintained as 
prescribed by Sec. 555.126.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-293, 55 FR 3721, Feb. 5, 1990; T.D. 
ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.124  Records maintained by licensed dealers.

    (a) Each licensed dealer shall take true and accurate physical 
inventories which will include all explosive materials on hand required 
to be accounted for in the records kept under this part. The licensed 
dealer shall take a special inventory
    (1) At the time of commencing business, which is the effective date 
of the license issued upon original qualification under this part;

[[Page 236]]

    (2) At the time of changing the location of his premises to another 
region;
    (3) At the time of discontinuing business; and
    (4) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director 
(compliance), and the duplicate retained by the licensed dealer. If a 
special inventory required by paragraphs (a) (1) through (4) of this 
section has not been taken during the calendar year, at least one 
physical inventory will be taken. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs (a) (1) 
through (4) of this section, will remain on file for inspection instead 
of being sent to the regional director (compliance). (See also 
Sec. 555.127.)
    (b) Each licensed dealer shall, not later than the close of the next 
business day following the date of purchase or other acquisition of 
explosive materials (except as provided in paragraph (d) of this 
section), enter the following information in a separate record:
    (1) Date of acquisition.
    (2) Name or brand name of manufacturer and name of importer (if 
any).
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) Name, address, and license or permit number of the person from 
whom the explosive materials are received.
    (c) Each licensed dealer shall, not later than the close of the next 
business day following the date of use (if the explosives are used by 
the dealer) or the date of distribution of any explosive materials to 
another licensee or a permittee (except as provided in paragraph (d) of 
this section), enter in a separate record the following information:
    (1) Date of disposition.
    (2) Name or brand name of manufacturer and name of importer (if 
any).
    (3) Manufacturer's marks of identification.
    (4) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.).
    (5) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc.) and size (length and diameter or 
diameter only of display fireworks).
    (6) License or permit number of licensee or permittee to whom the 
explosive materials are distributed.
    (d) When a commercial record is kept by a licensed dealer showing 
the purchase or other acquisition information required for the permanent 
record prescribed by paragraph (b) of this section, or showing the 
distribution information required for the permanent record prescribed by 
paragraph (c) of this section, the licensed dealer acquiring or 
distributing the explosive materials may, for a period not exceeding 
seven days following the date of acquisition of distribution of the 
explosive materials, delay making the required entry into the permanent 
record of acquisition or distribution. However, until the required entry 
of acquisition or disposition is made in the permanent record, the 
commercial record must be (1) kept by the licensed dealer separate from 
other commercial documents kept by the licensee, and (2) readily 
available for inspection on the licensed premises.
    (e) The regional director (compliance) may authorize alternate 
records to be maintained by a licensed dealer to record his acquisition 
or disposition of explosive materials, when it is shown by the licensed 
dealer that alternate records will accurately and readily disclose the 
required information. A licensed dealer who proposes to use alternate 
records shall submit a letter application to the regional director 
(compliance) and shall describe the proposed alternate records and the 
need for them. Alternate records are not to be employed by the licensed 
dealer until approval is received from the regional director 
(compliance).
    (f) Each licensed dealer shall maintain separate records of the 
sales or other distribution made of explosive

[[Page 237]]

materials to nonlicensees or nonpermittees. These records are maintained 
as prescribed by Sec. 555.126.

(Approved by the Office of Management and Budget under control number 
1512-0373)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-293, 55 FR 3721, Feb. 5, 1990; T.D. 
ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.125  Records maintained by permittees.

    (a) Records maintained by permittees prior to May 24, 2003. (1) Each 
permittee must take true and accurate physical inventories that will 
include all explosive materials on hand required to be accounted for in 
the records kept under this part. The permittee must take a special 
inventory--
    (i) At the time of commencing business, which is the effective date 
of the permit issued upon original qualification under this part;
    (ii) At the time of changing the location of his premises to another 
region;
    (iii) At the time of discontinuing business; and
    (iv) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of which is submitted to the regional director (compliance) 
and the duplicate retained by the permittee. If a special inventory 
required by paragraphs (a)(1)(i) through (iv) of this section has not 
been taken during the calendar year, a permittee is required to take at 
least one physical inventory. However, the record of the yearly 
inventory, other than a special inventory required by paragraphs 
(a)(1)(i) through (iv) of this section, will remain on file for 
inspection instead of being sent to the regional director (compliance). 
(See also Sec. 555.127.)
    (2) Each permittee must, not later than the close of the next 
business day following the date of acquisition of explosive materials, 
enter the following information in a separate record:
    (i) Date of acquisition;
    (ii) Name or brand name of manufacturer;
    (iii) Manufacturer's marks of identification;
    (iv) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.);
    (v) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc., and size (length and diameter or 
diameter only of display fireworks)); and
    (vi) Name, address, and license number of the persons from whom the 
explosive materials are received.
    (3) Each permittee must, not later than the close of the next 
business day following the date of disposition of surplus explosive 
materials to another permittee or a licensee, enter in a separate record 
the information prescribed in Sec. 555.124(c).
    (4) Each permittee must maintain separate records of disposition of 
surplus stocks of explosive materials to nonlicensees or nonpermittees 
as prescribed in Sec. 555.126.
    (5) The regional director (compliance) may authorize alternate 
records to be maintained by a permittee to record his acquisition of 
explosive materials, when it is shown by the permittee that alternate 
records will accurately and readily disclose the required information. A 
permittee who proposes to use alternate records must submit a letter 
application to the regional director (compliance) and must describe the 
proposed alternate records and the need for them. Alternate records are 
not to be employed by the permittee until approval is received from the 
regional director (compliance).
    (b) Records maintained by permittees on and after May 24, 2003. (1) 
Each holder of a user permit must take true and accurate physical 
inventories that will include all explosive materials on hand required 
to be accounted for in the records kept under this part. The permittee 
must take a special inventory--
    (i) At the time of commencing business, which is the effective date 
of the permit issued upon original qualification under this part;
    (ii) At the time of changing the location of his premises;
    (iii) At the time of discontinuing business; and
    (iv) At any other time the regional director (compliance) may in 
writing require. Each special inventory is to be prepared in duplicate, 
the original of

[[Page 238]]

which is submitted to the regional director (compliance) and the 
duplicate retained by the permittee. If a special inventory required by 
paragraphs (b)(1)(i) through (iv) of this section has not been taken 
during the calendar year, a permittee is required to take at least one 
physical inventory. The record of the yearly inventory, other than a 
special inventory required by paragraphs (b)(1)(i) through (iv) of this 
section, will remain on file for inspection instead of being sent to the 
regional director (compliance). (See also Sec. 555.127.)
    (2) Each holder of a limited permit must take true and accurate 
physical inventories, at least annually, that will include all explosive 
materials on hand required to be accounted for in the records kept under 
this part.
    (3) Each holder of a user permit or a limited permit must, not later 
than the close of the next business day following the date of 
acquisition of explosive materials, enter the following information in a 
separate record:
    (i) Date of acquisition;
    (ii) Name or brand name of manufacturer;
    (iii) Manufacturer's marks of identification;
    (iv) Quantity (applicable quantity units, such as pounds of 
explosives, number of detonators, number of display fireworks, etc.);
    (v) Description (dynamite (dyn), blasting agents (ba), detonators 
(det), display fireworks (df), etc., and size (length and diameter or 
diameter only of display fireworks)); and
    (vi) Name, address, and license number of the persons from whom the 
explosive materials are received.
    (4) Each holder of a user permit or a limited permit must, not later 
than the close of the next business day following the date of 
disposition of surplus explosive materials to another permittee or a 
licensee, enter in a separate record the information prescribed in 
Sec. 555.124(c).
    (5) When a record book is used as a permittee's permanent record the 
permittee may delay entry of the required information for a period not 
to exceed seven days if the commercial record contains all of the 
required information prescribed by paragraphs (b)(3) and (b)(4) of this 
section. However, the commercial record may be used instead of a record 
book as a permanent record provided that the record contains all of the 
required information prescribed by paragraphs (b)(3) and (b)(4) of this 
section.
    (6) Each holder of a user permit or a limited permit must maintain 
separate records of disposition of surplus stocks of explosive materials 
to holders of a limited permit as prescribed in Sec. 555.126.
    (7) The regional director (compliance) may authorize alternate 
records to be maintained by a holder of a user permit or a limited 
permit to record his acquisition of explosive materials, when it is 
shown by the permittee that alternate records will accurately and 
readily disclose the required information. A permittee who proposes to 
use alternate records must submit a letter application to the regional 
director (compliance) and must describe the proposed alternate records 
and the need for them. Alternate records are not to be employed by the 
permittee until approval is received from the regional director 
(compliance).

(Approved by the Office of Management and Budget under control number 
1140-0030)

[ATF No. 1, 68 FR 13790, Mar. 20, 2003]



Sec. 555.126   Explosives transaction record for distribution of explosive materials prior to May 24, 2003 and Limited Permittee Transaction Report for 
          distribution of explosive materials on and after May 24, 2003.

    (a) Explosives transaction record for distribution of explosive 
materials prior to May 24, 2003. (1) A licensee or permittee shall not 
temporarily or permanently distribute explosive materials to any person, 
other than another licensee or permittee, unless he records the 
transaction on an explosives transaction record, ATF F 5400.4.
    (2) Before the distribution of explosive materials to a nonlicensee 
or nonpermittee who is a resident of the State in which the licensee or 
permittee maintains his business premises, or to a nonlicensee or 
nonpermittee who is not a resident of the State in which the licensee or 
permittee maintains his business premises and is acquiring explosive 
materials

[[Page 239]]

under Sec. 555.105(a)(3), the licensee or permittee distributing the 
explosive materials shall obtain an executed ATF F 5400.4 from the 
distributee which contains all of the information required on the form 
and by the regulations in this part.
    (3) Completed ATF F 5400.4 is to be retained by the licensee or 
permittee as part of his permanent records in accordance with paragraph 
(a)(4) of this section.
    (4) Each ATF F 5400.4 is retained in numerical (by transaction 
serial number) order commencing with ``1'' and continuing in regular 
sequence. When the numbering of any series reaches ``1,000,000,'' the 
licensee or permittee may recommence the series. The recommenced series 
is to be given an alphabetical prefix or suffix. Where there is a change 
in proprietorship, or in the individual, firm, corporate name or trade 
name, the series in use at the time of the change may be continued.
    (5) The requirements of this section are in addition to any other 
recordkeeping requirement contained in this part.
    (6) A licensee or permittee may obtain, upon request, a supply of 
ATF F 5400.4 from the Director.
    (b) Limited Permittee Transaction Report for distribution of 
explosive materials on and after May 24, 2003. (1) A licensee or 
permittee may not distribute explosive materials to any person who is 
not a licensee or permittee. A licensee or permittee may not distribute 
explosive materials to a limited permittee unless the distributor 
records the transaction on ATF Form 5400.4, Limited Permittee 
Transaction Report.
    (2) Before distributing explosive materials to a limited permittee, 
the licensee or permittee must obtain an executed Form 5400.4 from the 
limited permittee with an original unaltered and unexpired Intrastate 
Purchase of Explosives Coupon (IPEC) affixed. Except when delivery of 
explosive materials is made by a common or contract carrier who is an 
agent of the limited permittee, the licensee, permittee, or an agent of 
the licensee or permittee, must verify the identity of the of the holder 
of the limited permit by examining an identification document (as 
defined in Sec. 555.11) and noting on the Form 5400.4 the type of 
document presented. The licensee or permittee must complete the 
appropriate section on Form 5400.4 to indicate the type and quantity of 
explosive materials distributed, the license or permit number of the 
seller, and the date of the transaction. The licensee or permittee must 
sign and date the form and include any other information required by the 
instructions on the form and the regulations in this part.
    (3) One copy of Form 5400.4 must be retained by the distributor as 
part of his permanent records in accordance with paragraph (b)(4) of 
this section and for the period specified in Sec. 555.121. The 
distributor must mail the other copy of Form 5400.4 to the Bureau of 
Alcohol, Tobacco, Firearms and Explosives in accordance with the 
instructions on the form.
    (4) Each Form 5400.4 must be retained in chronological order by date 
of disposition, or in alphabetical order by name of limited permittee. A 
licensee may not, however, use both methods in a single recordkeeping 
system. Where there is a change in proprietorship by a limited 
permittee, the forms may continue to be filed together after such 
change.
    (5) The requirements of this section are in addition to any other 
recordkeeping requirement contained in this part.

(Approved by the Office of Management and Budget under control number 
1140-0078)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-93, 46 
FR 50787, Oct. 15, 1981; T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. 
ATF-446, 66 FR 16602, Mar. 27, 2001; ATF No. 1, 68 FR 13791, Mar. 20, 
2003]



Sec. 555.127  Daily summary of magazine transactions.

    In taking the inventory required by Sec. Sec. 555.122, 555.123, 
555.124, and 555.125, a licensee or permittee shall enter the inventory 
in a record of daily summary transactions to be kept at each magazine of 
an approved storage facility; however, these records may be kept at one 
central location on the business premises if separate records of daily 
transactions are kept for each magazine. Not later than the close of the 
next business day, each licensee and

[[Page 240]]

permittee shall record by manufacturer's name or brand name, the total 
quantity received in and removed from each magazine during the day, and 
the total remaining on hand at the end of the day. Quantity entries for 
display fireworks may be expressed as the number and size of individual 
display fireworks in a finished state or as the number of packaged 
display segments or packaged displays. Information as to the number and 
size of display fireworks contained in any one packaged display segment 
or packaged display shall be provided to any ATF officer on request. Any 
discrepancy which might indicate a theft or loss of explosive materials 
is to be reported in acordance with Sec. 555.30.

[T.D. ATF-293, 55 FR 3722, Feb. 5, 1990, as amended by T.D. ATF-400, 63 
FR 45003, Aug. 24, 1998]



Sec. 555.128  Discontinuance of business.

    Where an explosive materials business or operations is discontinued 
and succeeded by a new licensee or new permittee, the records prescribed 
by this subpart shall appropriately reflect such facts and shall be 
delivered to the successor. Where discontinuance of the business or 
operations is absolute, the records required by this subpart must be 
delivered within 30 days following the business or operations 
discontinuance to any ATF office located in the region in which the 
business was located, or to the ATF Out-of-Business Records Center, 
Spring Mills Office Park, 882 T.J. Jackson Drive, Falling Waters, West 
Virginia 25419. Where State law or local ordinance requires the delivery 
of records to other responsible authority, the Chief, Firearms and 
Explosives Licensing Center may arrange for the delivery of the records 
required by this subpart to such authority. (See also, Sec. 555.61.)

[T.D. ATF-290, 54 FR 53054, Dec. 27, 1989, as amended by T.D. ATF-446a, 
66 FR 19089, Apr. 13, 2001; ATF No. 1, 68 FR 13792, Mar. 20, 2003]



Sec. 555.129  Exportation.

    Exportation of explosive materials is to be in accordance with the 
applicable provisions of section 38 of the Arms Export Control Act (22 
U.S.C. 2778) and implementing regulations. However, a licensed importer, 
licensed manufacturer, or licensed dealer exporting explosive materials 
shall maintain records showing the manufacture or acquisition of 
explosive materials as required by this part and records showing the 
quantity, the manufacturer's name or brand name of explosive materials, 
the name and address of the foreign consignee of the explosive 
materials, and the date the explosive materials were exported. See 
Sec. 555.180 for regulations concerning the exportation of plastic 
explosives.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 
FR 8377, Feb. 25, 1997]



Sec. 555.130  [Reserved]



                          Subpart H--Exemptions



Sec. 555.141  Exemptions.

    (a) General. Except for the provisions of Secs. 555.180 and 555.181, 
this part does not apply to:
    (1) Any aspect of the transportation of explosive materials via 
railroad, water, highway, or air which is regulated by the U.S. 
Department of Transportation and its agencies, and which pertains to 
safety. For example, regulations issued by the Department of 
Transportation addressing the security risk of aliens transporting 
explosives by commercial motor or railroad carrier from Canada preclude 
the enforcement of 18 U.S.C. 842(i)(5) against persons shipping, 
transporting, receiving, or possessing explosives incident to and in 
connection with the commercial transportation of explosives by truck or 
rail from Canada into the United States. Questions concerning this 
exception should be directed to ATF's Public Safety Branch in 
Washington, DC.
    (2) The use of explosive materials in medicines and medicinal agents 
in the forms prescribed by the official United States Pharmacopeia or 
the National Formulary. ``The United States Pharmacopeia and The 
National Formulary,'' USP and NF Compendia, are available from the 
United States Pharmacopeial Convention, Inc., 12601 Twinbrook Parkway, 
Rockville, Maryland 20852.

[[Page 241]]

    (3) The transportation, shipment, receipt, or importation of 
explosive materials for delivery to any agency of the United States or 
to any State or its political subdivision.
    (4) Small arms ammunition and components of small arms ammunition.
    (5) The manufacture under the regulation of the military department 
of the United States of explosive materials for, or their distribution 
to or storage or possession by, the military or naval services or other 
agencies of the United States.
    (6) Arsenals, navy yards, depots, or other establishments owned by, 
or operated by or on behalf of, the United States.
    (7) The importation, distribution, and storage of fireworks 
classified as UN0336, UN0337, UN0431, or UN0432 explosives by the U.S. 
Department of Transportation at 49 CFR 172.101 and generally known as 
``consumer fireworks'' or ``articles pyrotechnic.''
    (8) Gasoline, fertilizers, propellant actuated devices, or 
propellant actuated industrial tools manufactured, imported, or 
distributed for their intended purposes.
    (9) Industrial and laboratory chemicals which are intended for use 
as reagents and which are packaged and shipped pursuant to U.S. 
Department of Transportation regulations, 49 CFR Parts 100 to 177, which 
do not require explosives hazard warning labels.
    (b) Black powder. Except for the provisions applicable to persons 
required to be licensed under subpart D, this part does not apply with 
respect to commercially manufactured black powder in quantities not to 
exceed 50 pounds, percussion caps, safety and pyrotechnic fuses, quills, 
quick and slow matches, and friction primers, if the black powder is 
intended to be used solely for sporting, recreational, or cultural 
purposes in antique firearms, as defined in 18 U.S.C. 921(a)(16) or 
antique devices, as exempted from the term ``destructive devices'' in 18 
U.S.C. 921(a)(4).

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981 as amended by T.D. ATF-87, 46 FR 
46916, Sept. 23, 1981; T.D. ATF-293, 55 FR 3722, Feb. 5, 1990; T.D. ATF-
387, 62 FR 8377, Feb. 25, 1997; T.D. ATF-400, 63 FR 45003, Aug. 24, 
1998; ATF No. 1, 68 FR 13792, Mar. 20, 2003]



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

    (a) Any person prohibited from shipping or transporting any 
explosive in or affecting interstate or foreign commerce or from 
receiving or possessing any explosive which has been shipped or 
transported in or affecting interstate or foreign commerce may make 
application for relief from disabilities under section 845(b) of the Act 
.
    (b) An application for relief from disabilities must be filed with 
the Director by submitting ATF Form 5400.29, Application for Restoration 
of Explosives Privileges, in accordance with the instructions on the 
form. The application must be supported by appropriate data, including 
the information specified in paragraph (f) of this section. Upon receipt 
of an incomplete or improperly executed application for relief, the 
applicant will be notified of the deficiency in the application. If the 
application is not corrected and returned within 30 days following the 
date of notification, the application will be considered abandoned.
    (c)(1) The Director may grant relief to an applicant if it is 
established to the satisfaction of the Director that the circumstances 
regarding the disability and the applicant's record and reputation are 
such that the applicant will not be likely to act in a manner dangerous 
to public safety and that the granting of such relief is not contrary to 
the public interest.
    (2) Except as provided in paragraph (c)(3) of this section, the 
Director will not grant relief if the applicant--
    (i) Has not been discharged from parole or probation for a period of 
at least 2 years;
    (ii) Is a fugitive from justice;
    (iii) Is a prohibited alien;
    (iv) Is an unlawful user of or addicted to any controlled substance;
    (v) Has been adjudicated a mental defective or committed to a mental 
institution, unless the applicant was subsequently determined by a 
court, board, commission, or other lawful authority to have been 
restored to mental competency, to be no longer suffering from a mental 
disorder, and to have had all rights restored; or
    (vi) Is prohibited by the law of the State where the applicant 
resides from

[[Page 242]]

receiving or possessing explosive materials.
    (3)(i) The Director may grant relief to aliens who have been 
lawfully admitted to the United States or to persons who have not been 
discharged from parole or probation for a period of at least 2 years if 
he determines that the applicant has a compelling need to possess 
explosives, such as for purposes of employment.
    (ii) The Director may grant relief to the persons identified in 
paragraph (c)(2) of this section in extraordinary circumstances where 
the granting of such relief is consistent with the public interest.
    (d) A person who has been granted relief under this section is 
relieved of all disabilities imposed by the Act for the disabilities 
disclosed in the application. The granting of relief will not affect any 
disabilities incurred subsequent to the date the application was filed. 
Relief from disabilities granted to aliens will be effective only so 
long as the alien retains his or her lawful immigration status.
    (e)(1) A licensee or permittee who is under indictment or 
information for, or convicted of, a crime punishable by imprisonment for 
a term exceeding one year during the term of a current license or 
permit, or while he has pending a license or permit renewal application, 
shall not be barred from licensed or permit operations for 30 days after 
the date of indictment or information or 30 days after the date upon 
which his conviction becomes final. Also, if he files his application 
for relief under this section within such 30 day period, he may further 
continue licensed or permit operations while his application is pending. 
A licensee or permittee who does not file an application within 30 days 
from the date of his indictment or information, or within 30 days from 
the date his conviction becomes final, shall not continue licensed or 
permit operations beyond 30 days from the date of his indictment or 
information or beyond 30 days from the date his conviction becomes 
final.
    (2) In the event the term of a license or permit of a person expires 
during the 30 day period following the date of indictment of information 
of during the 30 day period after the date upon which his conviction 
becomes final or while his application for relief is pending, he shall 
file a timely application for renewal of his license or permit in order 
to continue licensed or permit operations. The license or permit 
application is to show that the applicant has been indicted or under 
information for, or convicted of, a crime punishable by imprisonment for 
a term exceeding one year.
    (3) A licensee or permittee shall not continue licensed or permit 
operations beyond 30 days following the date the Director issues 
notification that the licensee's or permittee's application for removal 
of the disabilities resulting from an indictment, information or 
conviction has been denied.
    (4) When a licensee or permittee may no longer continue licensed or 
permit operations under this section, any application for renewal of 
license of permit filed by the licensee or permittee while his 
application for removal of disabilities resulting from an indictment, 
information or conviction is pending, will be denied by the regional 
director (compliance).
    (f)(1) Applications for relief from disabilities must include the 
following information:
    (i) In the case of a corporation, or of any person having the power 
to direct or control the management of the corporation, information as 
to the absence of culpability in the offense for which the corporation, 
or any such person, was indicted, formally accused or convicted;
    (ii) In the case of an applicant who is an individual, two properly 
completed FBI Forms FD-258 (fingerprint card), and a written statement 
from each of three references who are not related to the applicant by 
blood or marriage and have known the applicant for at least 3 years, 
recommending the granting of relief;
    (iii) Written consent to examine and obtain copies of records and to 
receive statements and information regarding the applicant's background, 
including records, statements and other information concerning 
employment, medical history, military service, immigration status, and 
criminal record;

[[Page 243]]

    (iv) In the case of an applicant having been convicted of a crime 
punishable by imprisonment for a term exceeding one year, a copy of the 
indictment or information on which the applicant was convicted, the 
judgment of conviction or record of any plea of nolo contendere or plea 
of guilty or finding of guilt by the court;
    (v) In the case of an applicant under indictment, a copy of the 
indictment or information;
    (vi) In the case of an applicant who has been adjudicated a mental 
defective or committed to a mental institution, a copy of the order of a 
court, board, commission, or other lawful authority that made the 
adjudication or ordered the commitment, any petition that sought to have 
the applicant so adjudicated or committed, any medical records 
reflecting the reasons for commitment and diagnoses of the applicant, 
and any court order or finding of a court, board, commission, or other 
lawful authority showing the applicant's discharge from commitment, 
restoration of mental competency and the restoration of rights;
    (vii) In the case of an applicant who has been discharged from the 
Armed Forces under dishonorable conditions, a copy of the applicant's 
Certificate of Release or Discharge from Active Duty (Department of 
Defense Form 214), Charge Sheet (Department of Defense Form 458), and 
final court martial order;
    (viii) In the case of an applicant who, having been a citizen of the 
United States, has renounced his or her citizenship, a copy of the 
formal renunciation of nationality before a diplomatic or consular 
officer of the United States in a foreign state or before an officer 
designated by the Attorney General when the United States was in a state 
of war (see 8 U.S.C. 1481(a)(5) and (6)); and
    (ix) In the case of an applicant who is an alien, documentation that 
the applicant is an alien who has been lawfully admitted to the United 
States; certification from the applicant including the applicant's INS-
issued alien number or admission number, country/countries of 
citizenship, and immigration status, and certifying that the applicant 
is legally authorized to work in the United States, or other purposes 
for which possession of explosives is required; certification from an 
appropriate law enforcement agency of the applicant's country of 
citizenship stating that the applicant does not have a criminal record; 
and, if applicable, certification from a Federal explosives licensee or 
permittee or other employer stating that the applicant is employed by 
the employer and must possess explosive materials for purposes of 
employment. These certifications must be submitted in English.
    (2) Any record or document of a court or other government entity or 
official required by paragraph (f)(1) of this section must be certified 
by the court or other government entity or official as a true copy.

(Approved by the Office of Management and Budget under control number 
1140-0076)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF-487, 
68 FR 3748, Jan. 24, 2003. ATF No. 1, 68 FR 13792, Mar. 20, 2003]



      Subpart I--Unlawful Acts, Penalties, Seizures and Forfeitures



Sec. 555.161  Engaging in business without a license.

    Any person engaging in the business of importing, manufacturing, or 
dealing in explosive materials without a license issued under the Act, 
shall be fined not more than $10,000 or imprisoned not more than 10 
years, or both.



Sec. 555.162  False statement or representation.

    Any person who knowingly withholds information or makes any false or 
fictitious oral or written statement or furnishes or exhibits any false, 
fictitious, or misrepresented identification, intended or likely to 
deceive for the purpose of obtaining explosive materials, or a license, 
permit, exemption, or relief from disability under the Act, shall be 
fined not more than $10,000 or imprisoned not more than 10 years, or 
both.



Sec. 555.163  False entry in record.

    Any licensed importer, licensed manufacturer, licensed dealer, or 
permittee who knowingly makes any false entry in any record required to 
be kept under

[[Page 244]]

subpart G of this part, shall be fined not more than $10,000 or 
imprisoned not more than 10 years, or both.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 
FR 45003, Aug. 24, 1998]



Sec. 555.164  Unlawful storage.

    Any person who stores any explosive material in a manner not in 
conformity with this part, shall be fined not more than $1,000 or 
imprisoned not more than one year, or both.



Sec. 555.165  Failure to report theft or loss.

    (a) Any person who has knowledge of the theft or loss of any 
explosive materials from his stock and fails to report the theft or loss 
within 24 hours of discovery in accordance with Sec. 555.30, shall be 
fined not more than $1,000 or imprisoned not more than one year, or 
both.
    (b) On and after January 24, 2003, any licensee or permittee who 
fails to report a theft of explosive materials in accordance with 
Sec. 555.30 will be fined under title 18 U.S.C., imprisoned not more 
than 5 years, or both.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF No. 1, 68 FR 
13793, Mar. 20, 2003]



Sec. 555.166  Seizure or forfeiture.

    Any explosive materials involved or used or intended to be used in 
any violation of the Act or of this part or in any violation of any 
criminal law of the United States are subject to seizure and forfeiture, 
and all provisions of title 26, U.S.C. relating to the seizure, 
forfeiture, and disposition of firearms, as defined in 26 U.S.C. 
5845(a), will, so far as applicable, extend to seizures and forfeitures 
under the Act. (See Sec. 72.27 of this title for regulations on summary 
destruction of explosive materials which are impracticable or unsafe to 
remove to a place of storage.)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-363, 60 
FR 17449, Apr. 6, 1995]



                Subpart J--Marking of Plastic Explosives



Sec. 555.180  Prohibitions relating to unmarked plastic explosives.

    (a) No person shall manufacture any plastic explosive that does not 
contain a detection agent.
    (b) No person shall import or bring into the United States, or 
export from the United States, any plastic explosive that does not 
contain a detection agent. This paragraph does not apply to the 
importation or bringing into the United States, or the exportation from 
the United States, of any plastic explosive that was imported or brought 
into, or manufactured in the United States prior to April 24, 1996, by 
or on behalf of any agency of the United States performing military or 
police functions (including any military reserve component) or by or on 
behalf of the National Guard of any State, not later than 15 years after 
the date of entry into force of the Convention on the Marking of Plastic 
Explosives with respect to the United States, i.e., not later than June 
21, 2013.
    (c) No person shall ship, transport, transfer, receive, or possess 
any plastic explosive that does not contain a detection agent. This 
paragraph does not apply to:
    (1) The shipment, transportation, transfer, receipt, or possession 
of any plastic explosive that was imported or brought into, or 
manufactured in the United States prior to April 24, 1996, by any person 
during the period beginning on that date and ending on April 24, 1999; 
or
    (2) The shipment, transportation, transfer, receipt, or possession 
of any plastic explosive that was imported or brought into, or 
manufactured in the United States prior to April 24, 1996, by or on 
behalf of any agency of the United States performing a military or 
police function (including any military reserve component) or by or on 
behalf of the National Guard of any State, not later than 15 years after 
the date of entry into force of the Convention on the Marking of Plastic 
Explosives with

[[Page 245]]

respect to the United States, i.e., not later than June 21, 2013.
    (d) When used in this subpart, terms are defined as follows:
    (1) Convention on the Marking of Plastic Explosives means the 
Convention on the Marking of Plastic Explosives for the Purposes of 
Detection, Done at Montreal on 1 March 1991.
    (2) ``Date of entry into force'' of the Convention on the Marking of 
Plastic Explosives means that date on which the Convention enters into 
force with respect to the U.S. in accordance with the provisions of 
Article XIII of the Convention on the Marking of Plastic Explosives. The 
Convention entered into force on June 21, 1998.
    (3) Detection agent means any one of the substances specified in 
this paragraph when introduced into a plastic explosive or formulated in 
such explosive as a part of the manufacturing process in such a manner 
as to achieve homogeneous distribution in the finished explosive, 
including--
    (i) Ethylene glycol dinitrate (EGDN), 
C2H4(NO3)2, molecular weight 
152, when the minimum concentration in the finished explosive is 0.2 
percent by mass;
    (ii) 2,3-Dimethyl-2,3-dinitrobutane (DMNB), 
C6H12(NO2)2, molecular 
weight 176, when the minimum concentration in the finished explosive is 
0.1 percent by mass;
    (iii) Para-Mononitrotoluene (p-MNT), 
C7H7NO2, molecular weight 137, when the 
minimum concentration in the finished explosive is 0.5 percent by mass;
    (iv) Ortho-Mononitrotoluene (o-MNT), 
C7H7NO2, molecular weight 137, when the 
minimum concentration in the finished explosive is 0.5 percent by mass; 
and
    (v) Any other substance in the concentration specified by the 
Director, after consultation with the Secretary of State and Secretary 
of Defense, that has been added to the table in Part 2 of the Technical 
Annex to the Convention on the Marking of Plastic Explosives.
    (4) Plastic explosive means an explosive material in flexible or 
elastic sheet form formulated with one or more high explosives which in 
their pure form has a vapor pressure less than 10-\4\ Pa at a 
temperature of 25  deg.C, is formulated with a binder material, and is 
as a mixture malleable or flexible at normal room temperature. High 
explosives, as defined in Sec. 555.202(a), are explosive materials which 
can be caused to detonate by means of a blasting cap when unconfined.

[T.D. ATF-387, 62 FR 8376, Feb. 25, 1997, as amended by T.D. ATF-419, 64 
FR 55628, Oct. 14, 1999]



Sec. 555.181  Reporting of plastic explosives.

    All persons, other than an agency of the United States (including 
any military reserve component) or the National Guard of any State, 
possessing any plastic explosive on April 24, 1996, shall submit a 
report to the Director no later than August 22, 1996. The report shall 
be in writing and mailed by certified mail (return receipt requested) to 
the Director at P.O. Box 50204, Washington, DC 20091-0204. The report 
shall include the quantity of plastic explosives possessed on April 24, 
1996; any marks of identification on such explosives; the name and 
address of the manufacturer or importer; the storage location of such 
explosives, including the city and State; and the name and address of 
the person possessing the plastic explosives.

(Approved by the Office of Management and Budget under control number 
1512-0535)

[T.D. ATF-382, 61 FR 38085, July 23, 1996, as amended by T.D. ATF-387, 
62 FR 8377, Feb. 25, 1997]



Sec. 555.182  Exceptions.

    It is an affirmative defense against any proceeding involving 
Secs. 555.180 and 555.181 if the proponent proves by a preponderance of 
the evidence that the plastic explosive--
    (a) Consisted of a small amount of plastic explosive intended for 
and utilized solely in lawful--
    (1) Research, development, or testing of new or modified explosive 
materials;
    (2) Training in explosives detection or development or testing of 
explosives detection equipment; or
    (3) Forensic science purposes; or
    (b) Was plastic explosive that, by April 24, 1999, will be or is 
incorporated in a military device within the territory of the United 
States and remains

[[Page 246]]

an integral part of such military device, or is intended to be, or is 
incorporated in, and remains an integral part of a military device that 
is intended to become, or has become, the property of any agency of the 
United States performing military or police functions (including any 
military reserve component) or the National Guard of any State, wherever 
such device is located. For purposes of this paragraph, the term 
``military device'' includes, but is not restricted to, shells, bombs, 
projectiles, mines, missiles, rockets, shaped charges, grenades, 
perforators, and similar devices lawfully manufactured exclusively for 
military or police purposes.

[T.D. ATF-387, 62 FR 8377, Feb. 25, 1997]



Sec. 555.183  Importation of plastic explosives on or after April 24, 1997.

    Persons filing Form 6 applications for the importation of plastic 
explosives on or after April 24, 1997, shall attach to the application 
the following written statement, prepared in triplicate, executed under 
the penalties of perjury:
    (a) ``I declare under the penalties of perjury that the plastic 
explosive to be imported contains a detection agent as required by 27 
CFR 555.180(b)''; or
    (b) ``I declare under the penalties of perjury that the plastic 
explosive to be imported is a ``small amount'' to be used for research, 
training, or testing purposes and is exempt from the detection agent 
requirement pursuant to 27 CFR 555.182.''

[T.D. ATF-387, 62 FR 8377, Feb. 25, 1997]



Sec. 555.184  Statements of process and samples.

    (a) A complete and accurate statement of process with regard to any 
plastic explosive or to any detection agent that is to be introduced 
into a plastic explosive or formulated in such plastic explosive shall 
be submitted by a licensed manufacturer or licensed importer, upon 
request, to the Director.
    (b) Samples of any plastic explosive or detection agent shall be 
submitted by a licensed manufacturer or licensed importer, upon request, 
to the Director.

(Paragraph (a) approved by the Office of Management and Budget under 
control number 1512-0539)

[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]



Sec. 555.185  Criminal sanctions.

    Any person who violates the provisions of 18 U.S.C. 842(l)-(o) shall 
be fined under title 18, U.S.C., imprisoned for not more than 10 years, 
or both.

[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]



Sec. 555.186  Seizure or forfeiture.

    Any plastic explosive that does not contain a detection agent in 
violation of 18 U.S.C. 842(l)-(n) is subject to seizure and forfeiture, 
and all provisions of 19 U.S.C. 1595a, relating to seizure, forfeiture, 
and disposition of merchandise introduced or attempted to be introduced 
into the U.S. contrary to law, shall extend to seizures and forfeitures 
under this subpart. See Sec. 72.27 of this chapter for regulations on 
summary destruction of plastic explosives that do not contain a 
detection agent.

[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]



                           Subpart K--Storage



Sec. 555.201  General.

    (a) Section 842(j) of the Act and Sec. 555.29 of this part require 
that the storage of explosive materials by any person must be in 
accordance with the regulations in this part. Further, section 846 of 
this Act authorizes regulations to prevent the recurrence of accidental 
explosions in which explosive materials were involved. The storage 
standards prescribed by this subpart confer no right or privileges to 
store explosive materials in a manner contrary to State or local law.
    (b) The Director may authorize alternate construction for explosives 
storage magazines when it is shown that the alternate magazine 
construction is substantially equivalent to the standards of safety and 
security contained in this subpart. Any alternate explosive magazine 
construction approved by the Director prior to August 9, 1982, will 
continue as approved unless notified in

[[Page 247]]

writing by the Director. Any person intending to use alternate magazine 
construction shall submit a letter application to the regional director 
(compliance) for transmittal to the Director, specifically describing 
the proposed magazine. Explosive materials may not be stored in 
alternate magazines before the applicant has been notified that the 
application has been approved.
    (c) A licensee or permittee who intends to make changes in his 
magazines, or who intends to construct or acquire additional magazines, 
shall comply with Sec. 555.63.
    (d) The regulations set forth in Sec. Sec. 555.221 through 555.224 
pertain to the storage of display fireworks, pyrotechnic compositions, 
and explosive materials used in assembling fireworks and articles 
pyrotechnic.
    (e) The provisions of Sec. 555.202(a) classifying flash powder and 
bulk salutes as high explosives are mandatory after March 7, 1990: 
Provided, that those persons who hold licenses or permits under this 
part on that date shall, with respect to the premises covered by such 
licenses or permits, comply with the high explosives storage 
requirements for flash powder and bulk salutes by March 7, 1991.
    (f) Any person who stores explosive materials shall notify the 
authority having jurisdiction for fire safety in the locality in which 
the explosive materials are being stored of the type, magazine capacity, 
and location of each site where such explosive materials are stored. 
Such notification shall be made orally before the end of the day on 
which storage of the explosive materials commenced and in writing within 
48 hours from the time such storage commenced.

(Paragraph (f) approved by the Office of Management and Budget under 
control number 1512-0536)

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.202  Classes of explosive materials.

    For purposes of this part, there are three classes of explosive 
materials. These classes, together with the description of explosive 
materials comprising each class, are as follows:
    (a) High explosives. Explosive materials which can be caused to 
detonate by means of a blasting cap when unconfined, (for example, 
dynamite, flash powders, and bulk salutes). See also Sec. 555.201(e).
    (b) Low explosives. Explosive materials which can be caused to 
deflagrate when confined (for example, black powder, safety fuses, 
igniters, igniter cords, fuse lighters, and ``display fireworks'' 
classified as UN0333, UN0334, or UN0335 by the U.S. Department of 
Transportation regulations at 49 CFR 172.101, except for bulk salutes).
    (c) Blasting agents. (For example, ammonium nitrate-fuel oil and 
certain water-gels (see also Sec. 555.11).

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.203  Types of magazines.

    For purposes of this part, there are five types of magazines. These 
types, together with the classes of explosive materials, as defined in 
Sec. 555.202, which will be stored in them, are as follows:
    (a) Type 1 magazines. Permanent magazines for the storage of high 
explosives, subject to the limitations prescribed by Secs. 555.206 and 
555.213. Other classes of explosive materials may also be stored in type 
1 magazines.
    (b) Type 2 magazines. Mobile and portable indoor and outdoor 
magazines for the storage of high explosives, subject to the limitations 
prescribed by Secs. 555.206, 555.208(b), and 555.213. Other classes of 
explosive materials may also be stored in type 2 magazines.
    (c) Type 3 magazines. Portable outdoor magazines for the temporary 
storage of high explosives while attended (for example, a ``day-box''), 
subject to the limitations prescribed by Secs. 555.206 and 555.213. 
Other classes of explosives materials may also be stored in type 3 
magazines.
    (d) Type 4 magazines. Magazines for the storage of low explosives, 
subject to the limitations prescribed by Secs. 555.206(b), 555.210(b), 
and 555.213. Blasting agents may be stored in type 4 magazines, subject 
to the limitations prescribed by Secs. 555.206(c), 555.211(b), and 
555.213. Detonators that will not mass detonate may also be stored in

[[Page 248]]

type 4 magazines, subject to the limitations prescribed by 
Secs. 555.206(a), 555.210(b), and 555.213.
    (e) Type 5 magazines. Magazines for the storage of blasting agents, 
subject to the limitations prescribed by Secs. 555.206(c), 555.211(b), 
and 555.213.



Sec. 555.204  Inspection of magazines.

    Any person storing explosive materials shall inspect his magazines 
at least every seven days. This inspection need not be an inventory, but 
must be sufficient to determine whether there has been unauthorized 
entry or attempted entry into the magazines, or unauthorized removal of 
the contents of the magazines.



Sec. 555.205  Movement of explosive materials.

    All explosive materials must be kept in locked magazines meeting the 
standards in this subpart unless they are:
    (a) In the process of manufacture;
    (b) Being physically handled in the operating process of a licensee 
or user;
    (c) Being used; or
    (d) Being transported to a place of storage or use by a licensee or 
permittee or by a person who has lawfully acquired explosive materials 
under Sec. 555.106.



Sec. 555.206  Location of magazines.

    (a) Outdoor magazines in which high explosives are stored must be 
located no closer to inhabited buildings, passenger railways, public 
highways, or other magazines in which high explosives are stored, than 
the minimum distances specified in the table of distances for storage of 
explosive materials in Sec. 555.218.
    (b) Outdoor magazines in which low explosives are stored must be 
located no closer to inhibited buildings, passenger railways, public 
highways, or other magazines in which explosive materials are stored, 
than the minimum distances specified in the table of distances for 
storage of low explosives in Sec. 555.219, except that the table of 
distances in Sec. 555.224 shall apply to the storage of display 
fireworks. The distances shown in Sec. 555.219 may not be reduced by the 
presence of barricades.
    (c)(1) Outdoor magazines in which blasting agents in quantities of 
more than 50 pounds are stored must be located no closer to inhabited 
buildings, passenger railways, or public highways than the minimum 
distances specified in the table of distances for storage of explosive 
materials in Sec. 555.218.
    (2) Ammonium nitrate and magazines in which blasting agents are 
stored must be located no closer to magazines in which high explosives 
or other blasting agents are stored than the minimum distances specified 
in the table of distances for the separation of ammonium nitrate and 
blasting agents in Sec. 555.220. However, the minimum distances for 
magazines in which explosives and blasting agents are stored from 
inhabited buildings, etc., may not be less than the distances specified 
in the table of distances for storage of explosives materials in 
Sec. 555.218.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 
FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]



Sec. 555.207  Construction of type 1 magazines.

    A type 1 magazine is a permanent structure: a building, an igloo or 
``Army-type structure'', a tunnel, or a dugout. It is to be bullet-
resistant, fire-resistant, weather-resistant, theft-resistant, and 
ventilated.
    (a) Buildings. All building type magazines are to be constructed of 
masonry, wood, metal, or a combination of these materials, and have no 
openings except for entrances and ventilation. The ground around 
building magazines must slope away for drainage or other adequate 
drainage provided.
    (1) Masonry wall construction. Masonry wall construction is to 
consist of brick, concrete, tile, cement block, or cinder block and be 
not less than 6 inches in thickness. Hollow masonry units used in 
construction must have all hollow spaces filled with well-tamped, 
coarse, dry sand or weak concrete (at least a mixture of one part cement 
and eight parts of sand with enough water to dampen the mixture while 
tamping in place). Interior walls are to be constructed of, or covered 
with, a nonsparking material.
    (2) Fabricated metal wall construction. Metal wall construction is 
to consist of

[[Page 249]]

sectional sheets of steel or aluminum not less than number 14-gauge, 
securely fastened to a metal framework. Metal wall construction is 
either lined inside with brick, solid cement blocks, hardwood not less 
than four inches thick, or will have at least a six inch sand fill 
between interior and exterior walls. Interior walls are to be 
constructed of, or covered with, a nonsparking material.
    (3) Wood frame wall construction. The exterior of outer wood walls 
is to be covered with iron or aluminum not less than number 26-gauge. An 
inner wall of, or covered with nonsparking material will be constructed 
so as to provide a space of not less than six inches between the outer 
and inner walls. The space is to be filled with coarse, dry sand or weak 
concrete.
    (4) Floors. Floors are to be constructed of, or covered with, a 
nonsparking material and shall be strong enough to bear the weight of 
the maximum quantity to be stored. Use of pallets covered with a 
nonsparking material is considered equivalent to a floor constructed of 
or covered with a nonsparking material.
    (5) Foundations. Foundations are to be constructed of brick, 
concrete, cement block, stone, or wood posts. If piers or posts are 
used, in lieu of a continuous foundation, the space under the buildings 
is to be enclosed with metal.
    (6) Roof. Except for buildings with fabricated metal roofs, the 
outer roof is to be covered with no less than number 26-guage iron or 
aluminum, fastened to at least \7/8\ inch sheathing.
    (7) Bullet-resistant ceilings or roofs. Where it is possible for a 
bullet to be fired directly through the roof and into the magazine at 
such an angle that the bullet would strike the explosives within, the 
magazine is to be protected by one of the following methods:
    (i) A sand tray lined with a layer of building paper, plastic, or 
other nonporous material, and filled with not less than four inches of 
coarse, dry sand, and located at the tops of inner walls covering the 
entire ceiling area, except that portion necessary for ventilation.
    (ii) A fabricated metal roof constructed of \3/16\-inch plate steel 
lined with four inches of hardwood. (For each additional \1/16\ inch of 
plate steel, the hardwood lining may be decreased one inch.)
    (8) Doors. All doors are to be constructed of not less than \1/4\ 
inch plate steel and lined with at least two inches of hardwood. Hinges 
and hasps are to be attached to the doors by welding, riveting or 
bolting (nuts on inside of door). They are to be installed in such a 
manner that the hinges and hasps cannot be removed when the doors are 
closed and locked.
    (9) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlock fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a casehardened shackle of at least \3/8\ inch 
diameter. Padlocks must be protected with not less than \1/4\ inch steel 
hoods constructed so as to prevent sawing or lever action on the locks, 
hasps, and staples. These requirements do not apply to magazine doors 
that are adequately secured on the inside by means of a bolt, lock, or 
bar that cannot be actuated from the outside.
    (10) Ventilation. Ventilation is to be provided to prevent dampness 
and heating of stored explosive materials. Ventilation openings must be 
screened to prevent the entrance of sparks. Ventilation openings in side 
walls and foundations must be offset or shielded for bullet-resistant 
purposes. Magazines having foundation and roof ventilators with the air 
circulating between the side walls and the floors and between the side 
walls and the ceiling must have a wooden lattice lining or equivalent to 
prevent the packages of explosive materials from being stacked against 
the side walls and blocking the air circulation.
    (11) Exposed metal. No sparking material is to be exposed to contact 
with the stored explosive materials. All ferrous metal nails in the 
floor and side walls, which might be exposed to contact with explosive 
materials, must be blind nailed, countersunk, or covered with a 
nonsparking lattice work or other nonsparking material.

[[Page 250]]

    (b) Igloos, ``Army-type structures'', tunnels, and dugouts. Igloo, 
``Army-type structure'', tunnel, and dugout magazines are to be 
constructed of reinforced concrete, masonry, metal, or a combination of 
these materials. They must have an earthmound covering of not less than 
24 inches on the top, sides and rear unless the magazine meets the 
requirements of paragraph (a)(7) of this section. Interior walls and 
floors must be constructed of, or covered with, a nonsparking material. 
Magazines of this type are also to be constructed in conformity with the 
requirements of paragraph (a)(4) and paragraphs (a)(8) through (11) of 
this section.



Sec. 555.208  Construction of type 2 magazines.

    A type 2 magazine is a box, trailer, semitrailer, or other mobile 
facility.
    (a) Outdoor magazines--(1) General. Outdoor magazines are to be 
bullet-resistant, fire-resistant, weather-resistant, theft-resistant, 
and ventilated. They are to be supported to prevent direct contact with 
the ground and, if less than one cubic yard in size, must be securely 
fastened to a fixed object. The ground around outdoor magazines must 
slope away for drainage or other adequate drainage provided. When 
unattended, vehicular magazines must have wheels removed or otherwise 
effectively immobiliized by kingpin locking devices or other methods 
approved by the Director.
    (2) Exterior construction. The exterior and doors are to be 
constructed of not less than \1/4\-inch steel and lined with at least 
two inches of hardwood. Magazines with top openings will have lids with 
water-resistant seals or which overlap the sides by at least one inch 
when in a closed position.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\-
inch diameter. Padlocks must be protected with not less than \1/4\-inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. These requirements do not apply to magazine 
doors that are adequately secured on the inside by means of a bolt, 
lock, or bar that cannot be actuated from the outside.
    (b) Indoor magazines--(1) General. Indoor magazines are to be fire-
resistant and theft-resistant. They need not be bullet-resistant and 
weather-resistant if the buildings in which they are stored provide 
protection from the weather and from bullet penetration. No indoor 
magazine is to be located in a residence or dwelling. The indoor storage 
of high explosives must not exceed a quantity of 50 pounds. More than 
one indoor magazine may be located in the same building if the total 
quantity of explosive materials stored does not exceed 50 pounds. 
Detonators must be stored in a separate magazine (except as provided in 
Sec. 555.213) and the total quantity of detonators must not exceed 
5,000.
    (2) Exterior construction. Indoor magazines are to be constructed of 
wood or metal according to one of the following specifications:
    (i) Wood indoor magazines are to have sides, bottoms and doors 
constructed of at least two inches of hardwood and are to be well braced 
at the corners. They are to be covered with sheet metal of not less than 
number 26-gauge (.0179 inches). Nails exposed to the interior of 
magazines must be countersunk.
    (ii) Metal indoor magazines are to have sides, bottoms and doors 
constructed of not less than number 12-gauge (.1046 inches) metal and be 
lined inside with a nonsparking material. Edges of metal covers must 
overlap sides at least one inch.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and

[[Page 251]]

staples; (iii) a combination of a mortise lock and a padlock; (iv) a 
mortise lock that requires two keys to open; or (v) a three-point lock. 
Padlocks must have at least five tumblers and a case-hardened shackle of 
at least \3/8\-inch diameter. Padlocks must be protected with not less 
than \1/4\-inch steel hoods constructed so as to prevent sawing or lever 
action on the locks, hasps, and staples. Indoor magazines located in 
secure rooms that are locked as provided in this subparagraph may have 
each door locked with one steel padlock (which need not be protected by 
a steel hood) having at least five tumblers and a case-hardened shackle 
of at least \3/8\-inch diameter, if the door hinges and lock hasp are 
securely fastened to the magazine. These requirements do not apply to 
magazine doors that are adequately secured on the inside by means of a 
bolt, lock, or bar that cannot be actuated from the outside.
    (c) Detonator boxes. Magazines for detonators in quantities of 100 
or less are to have sides, bottoms and doors constructed of not less 
than number 12-gauge (.1046 inches) metal and lined with a nonsparking 
material. Hinges and hasps must be attached so they cannot be removed 
from the outside. One steel padlock (which need not be protected by a 
steel hood) having at least five tumblers and a case-hardened shackle of 
at least \3/8\-inch diameter is sufficient for locking purposes.



Sec. 555.209  Construction of type 3 magazines.

    A type 3 magazine is a ``day-box'' or other portable magazine. It 
must be fire-resistant, weather-resistant, and theft-resistant. A type 3 
magazine is to be constructed of not less than number 12-gauge (.1046 
inches) steel, lined with at least either \1/2\-inch plywood or \1/2\-
inch Masonite-type hardboard. Doors must overlap sides by at least one 
inch. Hinges and hasps are to be attached by welding, riveting or 
bolting (nuts on inside). One steel padlock (which need not be protected 
by a steel hood) having at least five tumblers and a case-hardened 
shackle of at least \3/8\-inch diameter is sufficient for locking 
purposes. Explosive materials are not to be left unattended in type 3 
magazines and must be removed to type 1 or 2 magazines for unattended 
storage.



Sec. 555.210  Construction of type 4 magazines.

    A type 4 magazine is a building, igloo or ``Army-type structure'', 
tunnel, dugout, box, trailer, or a semitrailer or other mobile magazine.
    (a) Outdoor magazines--(1) General. Outdoor magazines are to be 
fire-resistant, weather-resistant, and theft-resistant. The ground 
around outdoor magazines must slope away for drainage or other adequate 
drainage be provided. When unattended, vehicular magazines must have 
wheels removed or otherwise be effectively immobilized by kingpin 
locking devices or other methods approved by the Director.
    (2) Construction. Outdoor magazines are to be constructed of 
masonry, metal-covered wood, fabricated metal, or a combination of these 
materials. Foundations are to be constructed of brick, concrete, cement 
block, stone, or metal or wood posts. If piers or posts are used, in 
lieu of a continuous foundation, the space under the building is to be 
enclosed with fire-resistant material. The walls and floors are to be 
constructed of, or covered with, a nonsparking material or lattice work. 
The doors must be metal or solid wood covered with metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and case-hardened shackle of at least \3/8\ inch 
diameter. Padlocks must be protected with not less than \1/4\ inch steel 
hoods constructed so as to prevent sawing or lever action on the locks, 
hasps, and staples. These requirements do not apply to magazine doors 
that are adequately secured on the inside by means of a bolt, lock, or 
bar that cannot be actuated from the outside.

[[Page 252]]

    (b) Indoor magazine--(1) General. Indoor magazines are to be fire-
resistant and theft-resistant. They need not be weather-resistant if the 
buildings in which they are stored provide protection from the weather. 
No indoor magazine is to be located in a residence or dwelling. The 
indoor storage of low explosives must not exceed a quantity of 50 
pounds. More than one indoor magazine may be located in the same 
building if the total quantity of explosive materials stored does not 
exceed 50 pounds. Detonators that will not mass detonate must be stored 
in a separate magazine and the total number of electric detonators must 
not exceed 5,000.
    (2) Construction. Indoor magazines are to be constructed of masonry, 
metal-covered wood, fabricated metal, or a combination of these 
materials. The walls and floors are to be constructed of, or covered 
with, a nonsparking material. The doors must be metal or solid wood 
covered with metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\ 
inch diameter. Padlocks must be protected with not less than \1/4\ inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. Indoor magazines located in secure rooms that 
are locked as provided in this subparagraph may have each door locked 
with one steel padlock (which need not be protected by a steel hood) 
having at least five tumblers and a case-hardened shackle of at least 
\3/8\ inch diameter, if the door hinges and lock hasp are securely 
fastened to the magazine. These requirements do not apply to magazine 
doors that are adequately secured on the inside by means of a bolt, 
lock, or bar that cannot be actuated from the outside.



Sec. 555.211  Construction of type 5 magazines.

    A type 5 magazine is a building, igloo or ``Army-type structure'', 
tunnel, dugout, bin, box, trailer, or a semitrailer or other mobile 
facility.
    (a) Outdoor magazines--(1) General. Outdoor magazines are to be 
weather-resistant and theft-resistant. The ground around magazines must 
slope away for drainage or other adequate drainage be provided. When 
unattended, vehicular magazines must have wheels removed or otherwise be 
effectively immobilized by kingpin locking devices or other methods 
approved by the Director.
    (2) Construction. The doors are to be constructed of solid wood or 
metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside of door). Hinges and 
hasps must be installed so that they cannot be removed when the doors 
are closed and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\ 
inch diameter. Padlocks must be protected with not less than \1/4\ inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. Trailers, semitrailers, and similar vehicular 
magazines may, for each door, be locked with one steel padlock (which 
need not be protected by a steel hood) having at least five tumblers and 
a case-hardened shackle of at least \3/8\ inch diameter, if the door 
hinges and lock hasp are securely fastened to the magazine and to the 
door frame. These requirements do not apply to magazine doors that are 
adequately secured on the inside by means of a bolt, lock, or bar that 
cannot be actuated from the outside.
    (5) Placards. The placards required by Department of Transportation 
regulations at 49 CFR part 172, subpart F, for the transportation of 
blasting agents shall be displayed on all magazines.

[[Page 253]]

    (b) Indoor magazines--(1) General. Indoor magazines are to be theft-
resistant. They need not be weather-resistant if the buildings in which 
they are stored provide protection from the weather. No indoor magazine 
is to be located in a residence or dwelling. Indoor magazines containing 
quantities of blasting agents in excess of 50 pounds are subject to the 
requirements of Sec. 555.206 of this subpart.
    (2) Construction. The doors are to be constructed of wood or metal.
    (3) Hinges and hasps. Hinges and hasps are to be attached to doors 
by welding, riveting, or bolting (nuts on inside). Hinges and hasps must 
be installed so that they cannot be removed when the doors are closed 
and locked.
    (4) Locks. Each door is to be equipped with (i) two mortise locks; 
(ii) two padlocks fastened in separate hasps and staples; (iii) a 
combination of a mortise lock and a padlock; (iv) a mortise lock that 
requires two keys to open; or (v) a three-point lock. Padlocks must have 
at least five tumblers and a case-hardened shackle of at least \3/8\ 
inch diameter. Padlocks must be protected with not less than \1/4\ inch 
steel hoods constructed so as to prevent sawing or lever action on the 
locks, hasps, and staples. Indoor magazines located in secure rooms that 
are locked as provided in this subparagraph may have each door locked 
with one steel padlock (which need not be protected by a steel hood) 
having at least five tumblers and a case-hardened shackle of at least 
\3/8\ inch diameter, if the door hinges and lock hasps are securely 
fastened to the magazine and to the door frame. These requirements do 
not apply to magazine doors that are adequately secured on the inside by 
means of a bolt, lock, or bar that cannot be actuated from the outside.

[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-298, 55 
FR 21863, May 30, 1990]



Sec. 555.212  Smoking and open flames.

    Smoking, matches, open flames, and spark producing devices are not 
permitted:
    (a) In any magazine;
    (b) Within 50 feet of any outdoor magazine; or
    (c) Within any room containing an indoor magazine.



Sec. 555.213  Quantity and storage restrictions.

    (a) Explosive materials in excess of 300,000 pounds or detonators in 
excess of 20 million are not to be stored in one magazine unless 
approved by the Director.
    (b) Detonators are not to be stored in the same magazine with other 
explosive materials, except under the following circumstances:
    (1) In a type 4 magazine, detonators that will not mass detonate may 
be stored with electric squibs, safety fuse, igniters, and igniter cord.
    (2) In a type 1 or type 2 magazine, detonators may be stored with 
delay devices and any of the items listed in paragraph (b)(1) of this 
section.



Sec. 555.214  Storage within types 1, 2, 3, and 4 magazines.

    (a) Explosive materials within a magazine are not to be placed 
directly against interior walls and must be stored so as not to 
interfere with ventilation. To prevent contact of stored explosive 
materials with walls, a nonsparking lattice work or other nonsparking 
material may be used.
    (b) Containers of explosive materials are to be stored so that marks 
are visible. Stocks of explosive materials are to be stored so they can 
be easily counted and checked upon inspection.
    (c) Except with respect to fiberboard or other nonmetal containers, 
containers of explosive materials are not to be unpacked or repacked 
inside a magazine or within 50 feet of a magazine, and must not be 
unpacked or repacked close to other explosive materials. Containers of 
explosive materials must be closed while being stored.
    (d) Tools used for opening or closing containers of explosive 
materials are to be of nonsparking materials, except