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.