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By Kathryn Bender, Star-Bulletin
The largest fireworks seizure in state history was made at
a warehouse rented by Sun Chong Co. Ltd., a Chinese grocery
store. Police confiscated 1,400 cases of fireworks
weighing 28,305 pounds last year.

Fireworks
slip into isles
through loopholes
in regulations

Dealers exploit the confusing
laws with little fear of
legal repercussions

By Ian Lind
Star-Bulletin

The millennial New Year's Eve celebration on Oahu turned out to be a loud and fiery extravaganza, no surprise for a citizenry that traditionally lights fireworks to greet the new calendar.

But just as obvious as the smoke that hung over Honolulu into the morning was another fact: Law enforcement officials, once again, were unable to stem the flow of illegal aerial fireworks into the state.

Their paralysis is the result of state and federal laws that don't mesh and confusing regulations, leaving legal loopholes big enough for a container of fireworks to jump through, federal and local officials say.

A case in state court -- in which an illegal fireworks business operated out of a state-owned warehouse on Sand Island -- points to some of the problems they are confronting, legal and otherwise.

"It's difficult to monitor our tenants," said Harbors Division land agent Derrick Lining. "We don't inspect all containers that come in and out. That would be impossible. We tend to trust them to comply with their rental agreement and fire department rules and regulations."

Covert operation

That trust may have been misplaced in the case of Sun Chong Co. Ltd., a Chinese grocery which since 1994 has rented the warehouse at the former Kapalama Military Reservation, according to state records.

The stated purpose of the rental is for "receipt & storage of food items and dry goods." But just after 1 p.m. on Dec. 28, an undercover Honolulu police officer entered the warehouse and bought a box of "Super Shock Wave" aerial rockets for $110, police records say.

The rockets are illegal in Hawaii, as are 20 other brands that reportedly were for sale -- and the 40-year-old man running the business said there had been "plenty" more available a week before. Police moved in and seized 1,400 cases of fireworks weighing 28,305 pounds, the largest seizure of its kind in the past year, according to itemized court records.

Sun Chong Co. had a state permit for the sale of other types of legal fireworks, and estimated it would be handling only 200 cases, records show.

By Kathryn Bender, Star-Bulletin
Honolulu police seized 1,400 cases of illegal fireworks
from this Kapalama Military Reservation warehouse
last year, according to court records.

Tai Kim "Kevin" Lam, president of Sun Chong, was arrested at the scene but released without charges.

He likely wasn't facing a serious penalty: Nearly all fireworks violations -- including selling illegal items or being unlicensed -- are petty misdemeanors under state law, punishable by a maximum $500 fine or six months in jail.

Court records show Lam had a prior fireworks-related conviction. He was arrested in December 1990 for possessing fireworks without a proper license, found guilty and fined $50.

Fireworks classifications

Fireworks regulation begins with the federal government and a classification scheme based on explosive potential, according to Tracy Elder, agent in charge of the Bureau of Alcohol, Tobacco and Firearms in Honolulu.

Large aerial rockets, like those used in commercially produced shows, are Class B fireworks. Importing or selling them without a license from the ATF is a felony, with a potential 10-year prison sentence, he said. Importing, but not selling, also is a felony under state law.

Things get less consistent with Class C fireworks, like sparklers, firecrackers, and small cones and aerials.

"As far as we're concerned, it's legal for you to possess those," Elder said, speaking for the federal government. Under state law, however, Class C aerials are prohibited.

Attorney Wendell J.H. Choy, who represented Lam in a hearing to determine what to do with the 14 tons of fireworks -- all apparently Class C aerials -- said mainland dealers are exploiting the confusion caused by conflicting laws.

"A mainland manufacturer is making representations that this (sale of Class C aerial fireworks) is legal," Choy said. "The manufacturer told them there is nothing the feds can do, and that those products are legal to sell in Hawaii."

Lam relied on those representations when he invested money in the fireworks, Choy said. "How is the average Joe Citizen supposed to understand all the regulations?" the attorney asked.

Avoiding import permits

The mainland, indeed, may be the source of much of the aerials deemed illegal by the state.

Shipments from China and other foreign countries are closely watched, said Creighton Goldsmith, the U.S. Custom Service's chief port inspector in Honolulu: They arrive in a bonded warehouse and are not released until all federal licenses and state permits have been obtained.

If fireworks are smuggled or falsely described, the result could be criminal charges for smuggling, or "severe monetary penalties and forfeiture of the cargo," he said.

But Goldsmith said Customs restrictions on imported fireworks are more strictly enforced in Hawaii than other ports of entry. He suspects foreign products are often shipped first to the West Coast and said he has "seen evidence of shipments entered at Seattle and Tacoma for consignees I know are doing business here."

"If it's sent from the mainland, there's no requirement that the shipping companies obtain a permit from the importer," he said. "They'll just deliver the container to anybody."

Ordering a container could be as simple as calling up a supplier on the Internet, he pointed out.

"One company says they'll gladly ship you a container of aerials and charge you $3,720 to ship a 20-foot container from Ohio," he said. "They say it's up to you to make sure you have all the necessary permits required by law."

Total control implausible

The problem could be solved by an existing federal law that makes it a crime to ship fireworks to states that outlaw them. But the state first must adopt what amounts to a total fireworks ban, and wrangling in the state Legislature indicates such agreement will not be forthcoming.

Goldsmith intimated even having the proper paperwork is no guarantee of sticking by the rules. Licensed pyrotechnic display operators can bring Class B aerials into Hawaii, he said, but the state has no requirements for record keeping or inventory control.

"The question is, what's happening to the shipments going to people licensed to bring in the aerials?" he said. "That's where we have a problem."

Lining said Sun Chong has been notified its rental agreement will be terminated because of the latest incident. Although the warehouse area is patrolled by a private guard service and harbor police, for all practical purposes little could be done to detect the illegal business or prevent it from operating from the warehouse, he said.

In fact, he said a warning was issued to another business in the same area after police responded to a complaint of illegally stored fireworks and found 465 sealed boxes.

"We were having our maintenance supervisor go around telling everyone, 'If you've got it here, you better get it out,'" Lining said. And if nothing is done, it seems likely the supervisor will be busy again as the next new year celebration approaches.