1140-COMBO 0075 Supporting Statement A (Forms 5400.4)

Explosives Transactions Involving Limited Permittees (ATF Forms 5400.4)

OMB Control Number 1140-0075

OMB Expiration Date: 09/30/2025

Department of Justice

Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)

Information Collection Request (ICR)

OMB 1140-0075

Explosives Transactions Involving Limited Permittees

(ATF Form 5400.4)

SUPPORTING STATEMENT

1. JUSTIFICATION

1. Explain the circumstances that make the information collection necessary.

ATF is responsible for administering and enforcing the Federal explosives laws under Title XI, Regulation of Explosives (18 U.S.C. chapter 40), of the Organized Crime Control Act of 1970. Any person who wishes to receive explosives must have a license or permit as required in 18 U.S.C. § 842(b) and ATF regulations at 27 CFR § 555.41. Persons who wish to purchase explosives solely for their own use, on no more than six occasions during a 12-month period, from licensees/user permittees in the state in which the person resides, may apply for a “limited” permit. Id. This information collection covers explosives transactions between limited permittees and licensees/user permittees. ATF requires certain information when a limited permittee purchases or receives explosives, to verify that the purchaser is the person named on the permit, that they are not attempting to purchase on more than six occasions or from another state, to ensure that they purchase only from licensed/user permitted persons, as required by the statute, that those explosives are received by only authorized persons, and to enable tracing explosives for public safety. Federal law at 18 U.S.C. § 842(f) and ATF regulations at 27 CFR § 555.105(b), § 555.125(b), and § 555.126(b) govern these transactions and require that the necessary information be provided. In addition, also for public safety and accounting for explosives purposes, ATF regulations at §555.34 require that limited permittees report any lost, stolen, or damaged Intrastate Purchase of Explosives Coupons (IPECs/coupons).

2. Indicate how, by whom, and for what purpose the information is to be used.

The persons exchanging or transporting explosive materials as part of a transaction with a limited permittee complete a transaction form, verify identities, describe method of transfer, retain records, and report lost or stolen coupons as described in more detail below.

ATF uses the collected information to help trace explosives at the request of law enforcement officials who have recovered stolen explosives or explosives that have been used in an actual or attempted criminal or terrorist bombing. ATF also uses the information concerning acquisition of explosive materials by a particular limited permittee to ensure that the permittee does not exceed the six transactions authorized by their permit and that the permittee has storage magazines suitable for the type and quantity of explosive materials acquired. This is another important safeguard to prevent theft, loss, or diversion of explosives into criminal channels due to unsafe or insecure storage. The collected information also ensures that licensees/permittees distribute explosive materials only to licensees/permittees and those persons authorized to accept delivery on their behalf whose identities have been verified prior to relinquishing possession of explosive materials to them. The collected information also ensures that licensees/permittees relinquish possession of explosives materials only to employees of common and contract carriers whose identity has been verified.

Documenting transactions

When the limited permittee orders explosive materials, they must provide the distributor/seller with a list of persons authorized to accept delivery of the explosives on the distributee’s behalf. Then, when a licensee/user permittee distributes explosives to the limited permittee, both parties record information about the transaction on the Limited Permittee Transaction Report (ATF Form 5400.4 or LPTR), and the limited permittee attaches one of their six coupons (ATF Form 5400.30) to the LPTR. The coupon bears the limited permittee’s name, address, permit number, and the coupon number. The individual filling out the form on the limited permittee’s/ distributee’s behalf verifies in section A of the LPTR that they are authorized by the distributee and understand the laws involved, describe the intended use of the purchased explosives, and enter their identifying information. The limited permittee then provides the LPTR with affixed coupon to the distributor in person or by mail, prior to receiving explosive materials.

The distributor/seller completes section B of the LPTR when they receive the form, entering information about the explosive materials being purchased, and the method by which the explosive materials are being provided to the distributee/limited permittee.

Verifying identity

If the distributee receives the explosives at the distributor’s premises or the distributor delivers the explosives to the limited permittee using a distributor employee or vehicle, the distribution method is ‘by distributor.’ In these cases, the distributor or their driver must verify the identity of the person accepting the delivery on behalf of the distributee against an identification document bearing the recipient’s name, address, date of birth, and photograph. As part of this, they also verify that the individual accepting the explosive materials is on the list of individuals authorized by the distributee to accept delivery of explosive materials on the distributee’s behalf. When delivery occurs by distributor, the distributor records the verification information in section C of the LPTR.

If the explosives are delivered to the limited permittee via common/contract carrier, the distributor must verify the identity of the individual accepting possession of the explosives for the common/contract carrier before transferring explosives to them. The distributor verifies the driver’s identity against their valid, unexpired driver’s license and records the verification information in section D of the LPTR.

In all cases, once the applicable sections of the LPTR are completed as described above, the distributor completes section E with their license/permit information and signs the LPTR.

Reporting

Anyone who has lost possession of one or more of the purchase coupons must report the loss, theft, or destruction to ATF by telephoning 1-888-ATF-BOMB, within 24 hours of discovery. These reports should include a detailed explanation of the circumstances of the theft, loss, or destruction and any other facts that may help to find or identify the document. Providing this information to ATF helps safeguard the coupons, enables ATF to provide replacement coupons as appropriate, and prevents or addresses any potential misuse of them to the detriment of public safety.

3. Describe whether, and to what extent, the information collection involves using automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection.

The LPTR is available on ATF’s website to fill Section A electronically and download. The IPEC is not available in an electronic format due to the need for it to stick to the LPTR, but ATF provides these coupons when it provides the limited permittee with their permit, so the respondents do not need to print them. Licensees/permittees may create and share the list of individuals authorized to accept explosive materials electronically. ATF Ruling 2023-1 allows licensees/permittees to maintain electronic acquisition and disposition records, as long as they meet the requirements in the Ruling and ATF regulations. ATF does not mandate the use of electronic records because there are situations in which it isn’t feasible for an explosives licensee/permittee to use a computerized or internet system.

4. Describe efforts to identify duplication.

This information is not duplicative and requires information about specific explosives transactions that isn’t obtained or recorded by other means. The information is also used only for law enforcement purposes. ATF uses a uniform subject classification system for forms to identify duplication.

5. If the information collection impacts small businesses or other small entities, describe any methods used to minimize burden.

This information collection does not have a significant impact on small entities.

6. Describe the consequence to federal programs or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

Failure to collect this information would hinder ATF’s ability to carry out its responsibility to ensure that explosive materials reach their destination and can be investigated if they don’t, are distributed only to federal explosives licensees/permittees, or representatives authorized to accept delivery on their behalf, and that the identity of the recipient (or their agent) is appropriately verified. Failure to collect this information would also hinder ATF’s ability to carry out its responsibility to ensure that limited permittees do not exceed the six transactions authorized by the statute and its responsibility to trace and account for explosives so that those used in criminal activities can be identified and perpetrators prosecuted.

7. Explain any special circumstances that would cause the information collection to be conducted in a manner inconsistent with 5 CFR 1320.6.

Requiring respondents to report information to the agency more often than quarterly: A limited permittee may receive for their personal use explosive materials from a licensee/user permittee on no more than six occasions during the 12-month period in which the permit is valid. It is possible therefore that reporting to ATF might occur more than quarterly if separate transactions occur during different quarters of the year.

Requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years: ATF regulations require explosives licensees/permittees to keep acquisition and disposition records for explosive materials on their business premises for at least five years from the date of the transaction. This requirement exists to better account for explosives, assess licensee/permittee operations, and trace explosives.

There are no other special circumstances associated with this information collection, which is otherwise conducted in a manner consistent with 5 CFR 1320.6.

8. If applicable, provide a copy, and identify the date and page number, of the agency’s notice published in the Federal Register, as required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB.

The 60-day notice was published in the Federal Register on 07/01/2025 (90 FR 28813). The comment period ended on 09/02/2025. ATF received no comments.

9. Explain any decision to provide any payments or gifts to respondents, other than remuneration of contractors or grantees.

No payment or gift is associated with this information collection.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

ATF has not assured respondents of confidentiality. However, the information being collected includes PII and is thus protected by the Privacy Act. The information is maintained by ATF in a system of records, Justice/ATF-008, Regulatory Enforcement System. The ATF 5400.4 form that accompanies this ICR includes a Privacy Act statement that covers this information and informs respondents of the system of records, routine uses, etc. 

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private.

This information collection does not ask questions or require information of a sensitive nature.

12. Provide estimates of the information collection’s hour burden.

There are 26 respondents associated with this collection, based on limited permit records from the past three years. Each respondent can respond up to six times per year under this type of permit, but records over the past six years show that respondents have not acquired any explosives under these permits during those six years. To account for any potential future change, ATF uses an estimate of three permittees who might respond once during the next three years, for a total of three respondents and three responses over the three years. ATF cannot rescind this collection, even though it isn’t currently being used, because it is required by statute.

1. Authorized persons list:

For each transaction, the limited permittee must provide the explosives distributor/seller with a list of persons authorized to accept delivery of the explosives on their behalf, when ordering the explosives. The limited permittee also must record who accepted the explosive materials on their behalf in the acquisition records. The list of authorized persons is completed once per year at an estimated burden of five minutes, with each subsequent use being a simple email attachment with no additional burden. The estimated 3 active respondents would incur a burden of 15 minutes (.25 hours) total over the three years (3 respondents * 5 minutes (0.0833 hours)) for this requirement.

2. LPTR completion burden:

When a licensee/user permittee distributes explosives to a limited permittee, both parties record information about the transaction on the LPTR (ATF Form 5400.4); and the limited permittee either provides or mails the form to the distributor with the coupon affixed. Each of the 3 active respondents would order explosives/complete this form once during the next three years, resulting in a total of 3 transactions/forms during this renewal period. ATF estimates that it takes a combined 20 minutes to complete the applicable sections of the form. ATF estimates five minutes for each limited permittee, ten minutes per distributor, and an additional five minutes for the individual having their identity verified, totaling approximately 20 minutes for each transaction. This results in an estimated 60 minutes (1 hour) for all transactions (20 minutes * 3 transactions).

3. Verifying identity burden for delivery by distributor:

If the explosives are picked up from the distributor by the limited permittee or delivered to the limited permittee by the distributor, the distributor verifies and records the identity of the individual accepting the delivery on behalf of the limited permittee. ATF estimates half of all limited permittee explosives distributions occur using this method. Given the 3 total acquisitions above, half, or 1.5 deliveries (which we round up to 2), result in an estimated five minutes for recipient verification involving the individual accepting on behalf of the distributee, which is already being counted as part of the LPTR completion burden above.

4. Verifying identity burden for delivery via common/contract carrier:

If the explosives are delivered to the limited permittee via common/contract carrier, the distributor must verify the identity of the person accepting possession for the common/contract carrier instead. ATF estimates half of all limited permittee explosives distributions occur using this method. Given the 3 total acquisitions for this renewal period above, half, or 1.5 deliveries (rounded up to 2), result in an estimated five minutes for recipient verification involving the common/carrier driver, which is already being counted as part of the LPTR completion burden above.

5. Theft/loss reporting to ATF:

Anyone who has lost possession of one or more of the purchase coupons must report the loss, theft, or destruction to ATF by telephoning 1-888-ATF-BOMB, within 24 hours of discovery. We estimate that each of the 3 respondents could take 20 minutes to report and provide the necessary details about the theft or loss of a coupon. ATF records show that no coupons have been lost or stolen. Given the relatively small number of overall respondents and transactions, and the historic rates of no thefts/losses, ATF estimates none would occur during this renewal period, and that the annual burden hour associated with this reporting requirement is zero hours.

Because active limited permittees will likely be applying in their personal capacity, ATF estimates that the opportunity costs of appealing the determination would be based on their free time or “leisure time.” ATF calculated the monetized value of that time using a standard leisure wage formula. For the applicant’s rate calculation, ATF relied on a methodology developed by the Department of Health and Human Services (HHS)¹ for calculating the hourly leisure wage. Because HHS’s methodology relies on Bureau of Labor Statistics (BLS) data that is updated on a monthly basis, we did not need to use an inflation-adjusted wage rate. Accordingly, consistent with HHS’s methodology, we used the BLS median weekly income for full-time employees as the base for calculating the hourly leisure wage. Based this methodology, ATF attributes a rounded value of $23 per hour for time spent by respondents completing the application form.

Table. Estimated annualized respondent cost and hour burden

Activity	Number of respondents per year	Frequency	Total annual responses	Time per response (hours)	Total annual burden (hours)	Hourly rate	Monetized value of respondent time
Submit authorized persons list	1	1	1	0.0833	0.0833	$23	$1.9159
Complete LPTR	1	1	1	0.333	0.333	$23	$7.659
Report coupon theft/ loss	1	0	0	0.33 (if done; but since no responses, this is 0)	0	$23	0
Total	1 respondent annually	1 (set of responses per respondent)	1 (set of responses)	0.4163 hours (per response set)	0.4163 hours (25 minutes)		$9.58

The annual time burden is 25 minutes, resulting in an annual monetized time value of $9.58. Over the three-year renewal period for this ICR, ATF estimates the total annual time burden as 1.25 hours (25 minutes x 3 (1 respondent each year)), resulting in a total three-year monetized time value of $28.74.

13. Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the information collection. (Do not include the cost of any hour burden shown in Items 12 and 14).

There are no additional costs associated with this information collection.

14. Provide estimates of the annualized cost to the federal government.

ATF estimates no additional costs to the federal government associated with this collection. This is due to the current staffing and administrative capacity already in place to complete any marginal processing required under this information collection, with long-term staffing capacity serving as a sunk cost.

15. Explain the reasons for any program changes or adjustments.

This information collection has been revised to streamline the collections involving explosives limited permittees. There previously were four collections (OMB control numbers 1140-0025, 1140-0075, 1140-0077, and 1140-0079), which have been combined, simplified, and updated to remove duplicative elements, and adjusted to reflect a regulatory change currently being finalized. These changes reduced the collective burden arising from these four ICRs. This ICR now includes three collection requirements: submitting an authorized persons list, completing the Form 5400.4, Limited Permittee Transaction Report (LPTR), and reporting lost or stolen ATF Form 5400.30s, Intrastate Purchase of Explosives Coupons (IPECs). Distributors and carriers no longer have to verify the identity of the person accepting explosives delivered by common carriers, and distributors can note the identification information they do collect directly on the LPTR, thereby reducing the burden. The LPTR has also been substantially revised to reflect the streamlined information collection requirements, decreasing the amount of time for record-keeping. In addition, the number of limited permittees has decreased significantly since the previous renewal periods for the original ICRs, from 100 respondents to 1 per year, and the number of responses has also significantly decreased. The time burden for this combined ICR has therefore decreased, due both to streamlining the combined collections and to the decrease in respondents and responses, from 1 hour per respondent or 254 hours total per year, to 25 minutes per respondent or $9.58 total per year.

16. For information collections whose results will be published, outline plans for tabulations and publication.

ATF will not publish the results of this collection.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

There are two forms involved in this information collection: the Limited Permit Transaction Report, or LPTR, ATF Form 5400.4, and the Intrastate Purchase of Explosives Coupon, or IPEC, ATF Form 5400.30. ATF intends to display the OMB expiration date for this information collection on the Form 5400.4, along with the OMB control number. However, the Forms 5400.30 are issued by ATF with each permit and are valid for only one year. They contain that expiration date on them, and it would be confusing to people if they also included a different OMB expiration date, since the OMB approval is for three years. However, respondents do not have to fill out or retain Form 5400.30; it is just a sticker they use to permit each transaction. Because it expires within the OMB approval period, it cannot be used beyond the OMB expiration date.

18. Explain each exception to the certification statement.

This information collection does not include any exceptions to the certification statement.

B. INFORMATION COLLECTIONS EMPLOYING STATISTICAL METHODS.

This collection does not employ statistical methods.

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