This is 27 CFR 55.141(a)(7) from 1991 which was changed in 1998. Our guy Shultz posted on his blog, "As you might recall, 27 CFR 55.141(a)(7) exempted Class C toy propellant devices until BATF screwed up a change in 1998 by forgetting to list anything but fireworks."
The NAR/TRA lawsuit was filed in 2000 in response to the ATF change of 27 CFR 55.141(a)(8) and the order was finally entered 16 March 2009. Both changes were made about the same time (a)(7) and (a)(8). It was not a mistake.
In fact DOT stated DOT Class C and DOT or UN 1.4 as equivalent. Therefore the only change needed was referencing DOT or UN 1.4. This change is the source of "starters" since they and all Class C articles (igniters, fuse, motors) were exempt until 1998. Still are under NA-0323 in the motor packages.
Proposed language 27 CFR 555.141(a)(7): (Revision 2016)
(7) The importation and distribution of fireworks classified as DOT or UN 1.4 articles and generally known as "common fireworks", and other DOT or UN 1.4 articles and substances, as described by the U.S. Department of Transportation regulations including in 49 CFR 173.100 (p), (r), (t), (u) and (x).
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