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(3) Marking of magazines. Box-type magazines shall be painted red or another distinctive color and clearly and conspicuously marked "Explosives."

[9 F. R. 3007, Mar. 21, 1944. Redesignated at 14 F. R. 5021, Aug. 13, 1949]

§ 1301.26 Storage of low explosives.

(a) Low explosives in amounts exceeding 125 pounds. All low explosives in amounts exceeding 125 pounds shall be stored in permanent magazines complying with all of the standards set forth in § 1301.25 (a) including subparagraphs (1) and (2), except that permanent magazines for the storage of low explosives need not be bullet-resistant. Any metal magazine shall be lined with a nonsparking material.

(b) Low explosives in amounts not exceeding 125 pounds. All low explosives in amounts of 125 pounds or less may be stored in permanent magazines complying with the standards set forth in § 1301.25 (a) or paragraph (a) of this section. If not so stored, such low explosives shall be stored in box-type magazines complying with all of the standards set forth in § 1301.25 (b) including subparagraphs (1), (2) and (3). [9 F. R. 3008, Mar. 21, 1944. Redesignated at 14 F. R. 5021, Aug. 13, 1949]

§ 1301.27 Storage of detonators.

(a) Detonators in numbers of 1,000 000 or more. All detonators in numbers of 1,000,000 or more shall be stored in permanent magazines complying with all of the standards set forth in § 1301.25 (a), including subparagraphs (1) and (2).

(b) Detonators in numbers of more than 5,000 and less than 1,000,000. All detonators in numbers of more than 5,000 but less than 1,000,000 shall be stored in permanent magazines complying with all of the standards set forth in § 1301.25 (a), including subparagraphs (1) and (2), except that permanent magazines for the storage of detonators need not be bullet-resistant. Any metal magazine

shall be lined with a non-sparking material.

(c) Detonators in numbers of 5,000 or less. All detonators in numbers of 5,000 or less may be stored in permanent magazines as above indicated. If not so stored, such detonators shall be stored in boxtype magazines complying with all of the standards set forth in § 1301.25 (b), including subparagraphs (1), (2) and (3).

(d) Storage with other explosives. No detonator shall be stored in any magazine containing high or low explosives or blasting device heaters.

[9 F. R. 3008, Mar. 21, 1944. Redesignated at 14 F. R. 5021, Aug. 13, 1949]

§ 1301.28 Storage of fuse.

Fuse may be stored in permanent magazines or in box-type magazines together with high or low explosives or detonators. If not so stored, fuse shall be stored in locked containers, locked rooms, or otherwise adequately protected against theft.

[9 F. R. 3008, Mar. 21, 1944. Redesignated at 14 F. R. 5021, Aug. 13, 1949]

§ 1301.29 Storage of explosives ingredients.

(a) Explosives ingredients generally. Except as provided in paragraph (b) of this section, explosives ingredients shall be stored in permanent magazines, box-type magazines, locked containers, locked rooms, or locked buildings, or shall be otherwise adequately protected against theft.

(b) Blasting device heaters-(1) Blasting device heaters in total weights exceeding 125 pounds. All blasting device heaters containing ingredients of explosives, when the total weight of such heaters exceeds 125 pounds, shall be stored in permanent magazines complying with all of the standards set forth in § 1301.25 (a), including subparagraphs (1) and (2), except that permanent magazines for the storage of blasting device heaters need not be bullet-resistant. Any metal magazine shall be lined with a non-sparking material.

(2) Blasting device heaters in total weights not exceeding 125 pounds. All blasting device heaters containing ingredients of explosives, when the total weight of such heaters is 125 pounds or less, may be stored in permanent magazines, as above indicated. When not so stored, such blasting device heaters shall be stored in box-type magazines complying with all of the standards set forth in § 1301.25 (b), including subparagraphs (1), (2), and (3).

(3) Storage with explosives. No blasting device heaters shall be stored in any magazine containing high or low explosives or detonators.

[9 F. R. 3008, Mar. 21, 1944. Redesignated at 14 F. R. 5021, Aug. 13, 1949]

§ 1301.30 Modification of storage and handling requirements.

In

(a) Grounds for modification. unusual circumstances when compliance with any requirement of §§ 1301.241301.29 is physically impractical, prohibitively expensive or for any reason not feasible, the requirement may be suspended or modified by the procedure set forth in paragraph (b) of this section:

(1) When the method of storing or handling explosives or explosives ingredients affords a measure of safety and protection to explosives or explosives ingredients equivalent to that provided by the standards described in the regulations in this part; or

(2) When the method of storing or handling explosives or explosives ingredients, in the particular circumstances, affords the greatest feasible measure of safety and protection to such explosives or explosives ingredients; or

(3) When, in the judgment of the Director, other good and sufficient reasons justify relaxation of any requirement and the safety or security of persons or of buildings, railroads, highways, underground workings, or other property is not thereby unduly threatened or impaired.

(b) Procedure for modification. Any licensee may request suspension or modification of any requirement of §§ 1301.241301.29. Such request should be made in writing, and should clearly indicate, in the light of the provisions of paragraph (a) of this section, the nature of the request and the reasons therefor. The request should be addressed to the Explosives Control Branch, Bureau of Mines, Washington 25, D. C. The licensee will be notified in writing if the request is granted in whole or in part. If any licenseee, after having possession of a copy of 1301.24-1301.29 or notice of their provisions, fails to request suspension or modification of any requirement of such

regulations, or fails to make such a request within 5 days after being informed by a representative of the Bureau of Mines of his noncompliance with any requirement of §§ 1301.24-1301.29, he shall be subject to all of the penalties for the violation of the regulations in this part.

[9 F. R. 3008, Mar. 21, 1944. Redesignated at 14 F. R. 5021, Aug. 13, 1949]

PART 1302-GENERAL LICENSE PERTAINING TO EXPLOSIVES § 1302.1 General License No. 8 pertaining to explosives and ingredients.

A general license is hereby granted under the Federal Explosives Act of December 26, 1941, as amended, to any person as defined in the act and regulations, who is not otherwise prohibited by law or by regulation or by proclamation of the Secretary of Defense, the Attorney General, or any other Federal agency from doing so, to manufacture, distribute, possess, purchase, accept, receive, acquire, store, sell, issue, or otherwise dispose of and use explosives and ingredients, as defined in the act and regulations.

This general license relieves persons covered by it from the duty of applying for and securing licenses under the Federal Explosives Act and the regulations.

The authority of licensing agents under the Federal Explosives Act and regulations to issue licenses is hereby suspended until this general license shall have expired.

This general license shall expire when revoked by the Director of the Bureau of Mines or when the Federal Explosives Act and the regulations are of no further force or effect, whichever happens first. (Sec. 18, 40 Stat. 388, as amended; 50 U. S. C. 140) [10 F. R. 12627, Oct. 9, 1945. Redesignated at 13 F. R. 6538, Nov. 5, 1948 and at 14 F. R. 5021, Aug. 13, 1949]

CHAPTER XIV-THE RENEGOTIATION BOARD

SUBCHAPTER A-MILITARY RENEGOTIATION REGULATIONS UNDER THE

Part

RENEGOTIATION ACT OF 1948

1421 Authority and organization for renegotiation.

1422 Procedure for renegotiation.

1423 Determination of renegotiable business and costs. 1424 Determination and elimination of excessive profits.

1425 Agreements, clearances and statements.

1427 Military renegotiation forms.

1428 Statutes, orders, and directives.

SUBCHAPTER B―THE RENEGOTIATION BOARD REGULATIONS UNDER THE 1951 ACT

1450 Employee responsibilities and conduct.

1451 Scope of Renegotiation Board regulations under the Renegotiation Act of 1951, and definitions applicable thereto.

1452 Prime contracts and subcontracts within the scope of the act.

1453 Mandatory exemptions from renegotiation.

1454 Partial mandatory exemption of prime contracts and subcontracts for new durable productive equipment.

1455 Permissive exemptions from renegotiation.

1456 Methods of segregating renegotiable and non-renegotiable sales.

1457 Fiscal year basis for renegotiation and exceptions.

1458 Receipts or accruals under statutory minimum.

1459 Costs allocable to and allowable against renegotiable business.

1460 Principles and factors in determining excessive profits.

1461 Recovery of excessive profits after determination.

1462 Renegotiation and taxes.

1463 Interim prepayment of excessive profits.

1464 Consolidated renegotiation of affiliated groups and related groups.
1465 Limitations on commencement and completion of renegotiation.
1466 Termination of renegotiation.

Part

1467 Mandatory exemption of contracts and subcontracts for standard commercial articles or services.

1470 Information required of contractors.

1471 Assignment of contractors for renegotiation.

1472 Conduct of renegotiation.

1473 Clearance procedure.

1474 Agreement procedure.

1475 Unilateral order procedure.

1476 Review by the Tax Court.

[blocks in formation]

1480 Availability and control of renegotiation records and information.

1490 Brokers and manufacturers' agents.

1498 Forms relating to agreements and orders. 1499-1599 [Reserved]

SUBCHAPTER A-MILITARY RENEGOTIATION REGULATIONS UNDER THE RENEGOTIATION ACT OF 1948

NOTE: All references in the Military Renegotiation Regulations to any of the following delegatees of the Secretary of Defense pursuant to the Renegotiation Act of 1948, as amended and extended, shall be deemed to be references to The Renegotiation Board: The Secretaries of the Army, the Navy and the Air Force, the Military Renegotiation Policy and Review Board, the Armed Services Renegotiation Board, including the Army, Navy and Air Force Renegotiation Divisions thereof, and the Chairman of said Divisions, (17 F. R. 711, Jan. 24, 1952.)

PART 1421-AUTHORITY AND OR- Sec.
FOR RENEGOTIA-

Sec.

GANIZATION

TION

1421.120

1421.121

1421.122

Subpart A-[Reserved]

Subpart B-Preliminary Material

Scope of subpart.

Applicability of regulations.
Definition of terms.

Subpart C-Organization and Function of the

1421.130

1421.130-1 1421.130-2 1421.131

1421.132

1421.133

Renegotiation Board

Statutory authority.

Renegotiation Act of 1948.
Renegotiation Act of 1951.
Delegation by the Secretary of
Defense to The Renegotiation
Board.
Redelegation by The Renegotia-
tion Board to the Secretary of
Defense.

Redelegation by the Secretary of
Defense to the Secretaries of
the Army, Navy and Air Force.
Subpart D-Relation of Renegotiation Act and
Royalty Adjustment Act Concerning Patents
Royalty Adjustment Act.

1421.141

1421.142 Patent licenses subject to renegotiation.

1421.143 Allowance of royalties as costs. AUTHORITY: The provisions of this Part 1421 issued under sec. 3, 62 Stat. 259; 50 U.S.C. App., 1193.

Subpart A-[Reserved]
Subpart B-Preliminary Material
§ 1421.120 Scope of subpart.
[13 F. R. 8641, Dec. 29, 1948]

§ 1421.121 Applicability of regulations.
The regulations in this subchapter
shall apply to all renegotiations conduct-
ed under the Renegotiation Act of 1948,
including renegotiations conducted with
respect to contracts and subcontracts
made subject to the Renegotiation Act of
1948 pursuant to the provisions of sec-
tion 401 of the Second Deficiency Appro-
priation Act, 1948, by section 622 of the
National Military Establishment Appro-
priation Act, 1950, and by section 618 of
the General Appropriation Act, 1951.
[Amdt. 10, 15 F. R. 6987, Oct. 19, 1950]

§ 1421.122 Definition of terms.

(a) The terms "the 1948 act," or "the act,” mean the Renegotiation Act of 1948.

(b) The term "Secretary" means the Secretary of Defense.

(c) The terms "renegotiate” and “renegotiation" include a determination by agreement or order under the Renegotiation Act of 1948.

(d) The term "excessive profits" means the portion of the profits derived from subject contracts or subcontracts which is determined, in accordance with subsection (b) of the act, to be excessive.

(e) The term "profits derived from subject contracts or subcontracts" means the excess of the amounts received or accrued under subject contracts or subcontracts over the costs paid or incurred with respect thereto.

(f) The term "subject contracts and subcontracts" means contracts in excess of $1,000 entered into under the authority of the Supplemental National Defense Appropriation Act, 1948, obligating funds appropriated by that act, obligating funds consolidated by that act with funds appropriated therein, or entered into through contract authorizations granted in that act, and all subcontracts in excess of $1,000 under such contracts. In addition it includes any contract or subcontract in excess of $1,000 made subject to the Renegotiation Act of 1948 pursuant to the provisions of section 401 of the Second Deficiency Appropriation Act, 1948, by section 622 of the National Military Establishment Appropriation Act, 1950, or by section 618 of the General Appropriation Act, 1951.

(g) The term "subcontract", as used in the act, means any purchase order or agreement in excess of $1,000 to perform all or any part of the work, or to make or furnish any article, required for the performance of any other subject contract or subcontract.

(h) The term "article" means any material, part, assembly, machinery, equipment, or other personal property.

(1) The terms "received or accrued" and "paid or incurred" shall be construed according to the method of accounting employed by the contractor or subcontractor in keeping his books.

(j) The term "contract" is generally used to include a subcontract, except where the distinction between them is clear from the context.

(k) The term "contractor" is generally used to include both a contractor and a subcontractor, except where the distinction between them is clear from the context.

(1) The term "mandatory statement" means the contractor's report discussed in §§ 1422.222 to 1422.222-7 of this subchapter.

(m) The terms "renegotiable business" and "renegotiable sales" mean the business of a contractor or subcontractor under subject contracts or subcontracts which are not exempt.

(n) The term "fiscal year" means the taxable year of the contractor or a subcontractor under Chapter 1 of the Internal Revenue Code.

(o) The term "Secretary of a Department" means the Secretary of the Department of the Army, the Secretary of the Department of the Navy, or the Secretary of the Department of the Air Force.

(p) The term "Policy and Review Board" or "Board" means the Military Renegotiation Policy and Review Board.

(q) The term "Renegotiation Board" means the Armed Services Renegotiation Board.

(r) The term "Renegotiation Division" means the Army, Navy, or Air Force Division of the Renegotiation Board.

(s) The terms "these regulations" or "the regulations" means the Military Renegotiation Regulations promulgated

under the act.

(t) For the purposes of section 401 of the Second Deficiency Appropriation Act, 1948, "aircraft" means any craft (including without limitation thereto, airplanes, balloons, dirigibles, helicopters and gliders) of a type capable of being flown by a human pilot carried by such craft.

(u) For the purpose of section 401 of the Second Deficiency Appropriation Act, "aircraft part" means any item which, at the time of the entering into the contract for its purchase, is intended by the procuring activity to be installed or physically incorporated in aircraft, whether in the original construction of aircraft, or in the repair, maintenance, or modification thereof. It includes, without limitation thereto, ordnance, navigational, electronic, and experimental equipment. It does not include multi-purpose items purchased for stock unless at the time of entering into such contract it is known by the procuring

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