ATF at it again: Reclassifying Wetted Nitrocellulose as Explosive Material
This should drive the price of powder through the roof.
http://www.ammoland.com/2016/08/atf-...-federal-laws/
Washington, DC -(AmmoLand.com)- 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.
III. Impact of ATF Reclassification
Manufacturers and importers of smokeless propellant have relied on ATF private letter rulings issued prior to 2016 stating that nitrocellulose wetted with water not less than 25 percent by mass is not subject to regulation under the federal explosives laws. Accordingly, the manufacturers have set up their logistics, storage and operations consistent with nitrocellulose not being regulated as an explosive. Manufacturers and importers may not have adequate storage facilities or record keeping systems to comply with the law. Licensed manufacturers also rely on private, unlicensed vendors to store wetted nitrocellulose in facilities that do not comply with storage requirements. A number of manufacturers also report an adverse impact on their contracts to supply smokeless propellant and finished rounds of ammunition to the Department of Defense.
Publication of the change in classification in an industry newsletter without advance notice has left manufacturers scrambling to determine what standards ATF will allow for alternate storage and record keeping and to obtain permits for unlicensed storage vendors. In the meantime, manufacturers and importers are violating federal law, as ATF allowed no grace period for coming into compliance. We note that ATF has authorized such periods in the past when changing agency positions. For example, see ATF’s November 12, 2010 Open Letterregarding explosive pest control devices.
From a friend in the know: "I just got off the phone with Chris Hodgdon and Chris stated that at this time there are NO implications that this will have on the U.S. market at this time. Chris stated that this new regulation was purely for controlling the transport and storage of raw form nitrocellulose and should NOT have an impact on the consumer market."
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