Editorial Note on Part 555
Editorial Note: Nomenclature changes to part 555 appear by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003.

§ 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 § 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 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 § 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, as amended by ATF No. 1, 68 FR 13790, Mar. 20, 2003]