No, the 0.4P term has nothing to do with non-linearity. That equation is only valid for vessels of a certain size.
Per UG-27 "Thickness of Shells Under Internal Pressure"
Circumferential Stress - "When the thickness does not exceed one-half the inside radius, or P does not exceed 0.385*S*E" the equation for thickness based on the circumferential is valid.
Longitudinal Stress - "When the thickness does not exceed one-half of the inside radius, or P does not exceed 1.25*S*E" the equation above is valid.
If you exceed the above then the vessel becomes a "thicked walled" vessel and entirely different approach is taken for it's design because the stress distribution through the wall is non-linear.
Now about those stress values given in Section IID.
Those values are for tension only.
In UG-23 "Maximum Allowable Stress Values" if your vessel is in compression (a vacuum is pulled inside the vessel or the vessel is externally pressurized) the allowable stress is evaluated based on the vessel geometry and operating temperature not on the published values listed in Section IID.
Now onto the correct forumulas for establishing the Allowable Stress Values.
From Table 1-100 in Section IID
Note: "Two sets of allowable stress values my be provided in Table 1A for austentic materials and in Table 1B for specific nonferrous alloys. The lower values are not specifically identified by a footnote. These lower values do not exceed two-thirds of the minimum yield strength at temperature. The higher alternative allowable stresses are identified by a footnote. These higher stresses may exceed two-thirds but do not exceed 90% of the minimum yield strength at temperature. The higher values should be used only where slightly higher deformation is not in itself objectionable. These higher stresses are not recommended for the design of flanges or for other strain sensitive applications."
Lastly, for welds.
UW-15 "Welded Connections" - "The allowable stress values for groove and fillet welds in percentages of stress values for the vessel material, which are used with UG-41 calculations, are as follows.
groove-weld tension - 74%
groove-weld shear - 60%
fillet-weld shear - 49%
For clarity, UG-41 is the design of welds for reinforcement calculations. Such as, nozzle to shell junction reinforcement pads.
So as you can see the allowable stress values are not laid out to define a safety factor for the entire vessel.
I hope this helps you out.
FOOTNOTE: - The above information is taken from the 2007 with 2008a Addenum of the ASME code. This code changes regularly. DO NOT use the informaton above to design a vessel with. Consult the current edition of the code.
Thanks
Matt