A bill to amend the Internal Revenue Code of 1954, by imposing a tax on the transfer of explosives to persons who may lawfully possess them and to prohibit possession of explosives by certain persons.

Imposes a tax on the transfer of explosives to persons who may lawfully possess them equal to one percent of the fair market value of the explosive at the time of transfer.

Requires that importers, manufacturers, and dealers in explosives shall register annually with the Secretary of Treasury.

Provides that the Secretary shall approve, as a registered transferee of explosives, any person, provided that: (1) such person regularly uses explosives in his trade or business or for scientific or educational purposes; and (2) such use is lawful in the jurisdiction in which the use occurs.

Prohibits transfers to unregistered persons. Provides that no person who: (1) is under indictment for, or has been convicted in any court, of a crime punishable by imprisonment for a term exceeding one year; (2) is a fugitive from justice; (3) has been adjudicated as a mental defective or has been committed to any mental institution; or (4) is not a citizen of the United States, may receive or possess any explosives.

Provides that importers, manufacturers, and dealers shall keep such records as prescribed by the Secretary.

Provides for a fine of not more than $10,000, and/or imprisonment of not more than 10 years for violations of this Act. (Adds 26 U.S.C. 5901-5907; 5911, 5921; 5922)