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Bureau of Alcohol, Tobacco, Firearms and Explosives

I am a licensee with ATF and a city has asked me to store display fireworks for its fireworks show. May I store fireworks for the city in my explosives magazine and return them to the municipality for the show? If so, what records would I have to keep?

The transfer of display fireworks generally constitutes a distribution as defined in 27 CFR § 555.11. Therefore, you are permitted to receive display fireworks from the municipality but must maintain a record of the acquisition pursuant to 27 CFR, Part 555, Subpart G – Records and Reports. Additionally, you must maintain a daily summary of magazine transactions pursuant to 27 CFR § 555.127 for all explosives stored in your magazines.

Pursuant to 27 CFR § 555.141(a)(3), Federal explosives regulations generally do not apply to 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.” Although the city is required to properly store explosives, it is exempt from the Federal licensing requirements at 27 CFR, Part 555, and can receive display fireworks without possessing a Federal explosives license or permit. Therefore, you can return the display fireworks to the city prior to the show so long as you enter this disposition in your permanent records as required under 27 CFR, Part 555, Subpart G.