Explosives

Document symbol
G/LIC/N/3/USA/21
Original language
English
Published on
16/10/2024

Outline of Systems

Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.

The United States maintains a system of registrations and permits to control the importation of explosives. All manufacturers, dealers, importers, and possessors of explosive materials are required by law to be licensed or permitted. The primary purpose of this licensing system is to keep explosives out of the hands of persons prohibited by law from receiving or possessing explosives and to ensure the safe and secure storage of explosives. Background checks are conducted to ensure that anyone who possesses explosives is not otherwise prohibited by law.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

Explosive materials are explosives, blasting agents, and detonators. Permits are required of all users. Licenses are required as stated in reply to question 1.

Q3. The system applies to goods originating in and coming from which countries?

All countries.

Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?

No. Purposes are to protect against the misuse and unsafe storage of explosive materials. See also reply to question 1. No alternative methods have been considered.

Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?

18 U.S.C. Chapter 40; 27 CFR Part 555. Licensing is statutorily required and cannot be abolished without legislative approval. Designation of products is not subject to administrative discretion.

Procedures

Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):

N/A

Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?

N/A

Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?

N/A

Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)

N/A

Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?

N/A

Q6.V. What are the minimum and maximum lengths of time for processing applications?

N/A

Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

N/A

Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

N/A

Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?

N/A

Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?

N/A

Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?

N/A

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

N/A

Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:

Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?

An application for a license or permit must be approved or denied within 90 days after receipt. Usual turn-around time from receipt of application to issuance of license or permit is 90 days. This timing is due to the statutory requirement that ATF perform in-person inspections of the business premises and storage facilities of all new and renewing explosives license/permit applicants, as well as conduct a background check and interview before approving the application.

Q7.b. Can a licence be granted immediately on request?

No.

Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.

No.

Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

Yes, consideration of applications is effected by a single administrative organ (ATF).

Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?

No additional circumstances apply. An application is granted provided the applicant provides the necessary information and meets the necessary requirements, which include an in-person interview and facility inspection. The reasons for any refusal are provided to the applicant in writing. In the event of refusal to issue or revocation of a license, administrative appeals may be made through the Director, ATF, and then there is right of appeal to United States Court of Appeals for the district in which the applicant/licensee resides.

Eligibility of Importers to Apply for Licence

Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?

All persons, firms, and institutions are eligible to apply for licenses.

Documentational and Other Requirements for Application for Licence

Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?

Application on ATF Forms 5400.13/5400.16, Application for License or Permit.

Q11. What documents are required upon actual importation?

Proof to United States Customs and Border Protection of licensed or permitted status furnished by importer or its agent. Explosives must be classified and marked per United States Department of Transportation standards.

Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?

Yes.

-        US$200 per license for three years; and US$100 for renewal for three years;

-        US$100 per User-permit per three years; and US$50 for User-permit renewal for three years;

-        US$75 per User-limited permit (non-renewable) valid for one year or one transaction; US$25 per Limited permit valid for one year or up to six transactions;

-         US$12 Limited permit renewal for one year or up to six transactions.

Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.

No.

Conditions of Licensing

Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?

Licenses are valid for three years. The validity of a license can be extended by renewal application. General user permits are valid for three years and can be extended by renewal application. Intrastate User permits are valid for up to one year or six product uses and are renewable. User limited permits are valid for one year and are not renewable.

Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?

No.

Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

No.

Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?

No additional conditions apply.

Other Procedural Requirements

Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

No.

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

N/A