BREAKING: ATF Reclassifies Federal Explosives Laws With Rule Change

Aaron Spuler is a firearms enthusiast and recreational shooter. Follow more or his work at The Weapon Blog

Don’t forget that the ammunition manufactures can’t sue. They can choose to either go out of business or raise prices to cover the increased expenses. But sense there is no ramp up period, as of right now all ammo manufactures are in violation of this new rule (can’t say law because it’s not).

In an Explosives Industry Newsletter issued in June 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) reclassified wetted nitrocellulose containing greater than 12.6 percent nitrogen as a high explosive under the federal explosives laws.

As explained below, this is a dramatic and sudden change in agency policy with a significant impact on the ammunition industry. The new policy was announced in a newsletter without any opportunity for industry input.

I. Background

The federal explosives laws, 18 U.S.C. Chapter 40, regulate commerce in “explosive materials.” The term “explosive materials” is defined as explosives, blasting agents, and detonators. The term “explosives” is defined as any chemical compound mixture or device the primary or common purpose of which is to function by explosion. The definition requires ATF to publish an annual list of explosives that fit within the statutory definition. The 2015 List of Explosives is available at https://www.gpo.gov/fdsys/pkg/FR-2015-10-23/pdf/2015-26994.pdf.

Exemptions from the requirements of the federal explosives laws are provided, in pertinent part, for: (1) the transportation, shipment, receipt, or importation of explosive materials for delivery to any federal or State agency; (2) for small arms ammunition and components thereof; and (3) for the manufacture under the regulation of the U.S. military of explosive materials for their official use.

The term “ammunition” is defined in 27 C.F.R. § 555.11 as follows:

“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.”

ATF’s longstanding position is that the small arms ammunition exemption applies only to .50 caliber or smaller rifle or handgun ammunition as well as certain shotgun ammunition. This position is clear in a June 2013 Explosive Industry Newsletter addressing exploding ammunition.

ATF also exempts other components of small arms ammunition from the requirements of the law and regulations, but only if such components are listed in the definition of “ammunition” in 27 C.F.R. § 555.11. This means that smokeless powder and primers are exempt from record keeping and storage requirements. However, other explosive materials used to manufacture ammunition will not be exempt until incorporated into one of the components of ammunition listed in the regulation, including smokeless powder or a complete round of small arms ammunition. Thus, wetted nitrocellulose containing greater than 12.6 percent nitrogen may be lawfully shipped, transported, or received only by persons holding federal explosives licenses or permits. Nitrocellulose must be recorded in records of acquisition in accordance with 27 C.F.R. § 555.123(b). The wetted nitrocellulose must also be recorded in the daily summary of magazine transactions required by 27 C.F.R. 555.127 and stored in storage magazines meeting the construction, tables of distance, and other requirements of storage regulations in 27 C.F.R. Part 555. At the point the nitrocellulose is incorporated into smokeless powder or a complete round of ammunition, it is exempt from the requirements of the record keeping, storage, and other requirements of federal law and regulations.

Read the rest of the article: http://www.ammoland.com/2016/08/atf-reclassifies-wetted-nitrocellulose-as-explosive-materials-under-federal-laws/