Modification of Mandatory Label Information for Wine, Distilled Spirits, and Malt Beverages, 51732-51735 [E7-17909]

Download as PDF 51732 Federal Register / Vol. 72, No. 175 / Tuesday, September 11, 2007 / Proposed Rules The Regulatory Flexibility Act and Executive Order 12866 This proposed amendment seeks to expand the list of designated airports at which certain aircraft may land for customs processing. As described in this document, certain international flights have been arriving at SAT, pursuant to statute, from November 2000, through November 9, 2006. The expansion of the list of designated airports to include SAT will not result in any new impact on affected parties but will result in a continuation of the previous situation. Therefore, CBP certifies that the proposed rule will not have significant economic impact on a substantial number of small entities. Accordingly, the document is not subject to the regulatory analysis or other requirements of 5 U.S.C. 603 and 604 of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The Office of Management and Budget has determined that this regulatory proposal is not a significant regulatory action as defined under Executive Order 12866. Dated: September 4, 2007. Michael Chertoff, Secretary. [FR Doc. E7–17802 Filed 9–10–07; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau Trade Group regarding the presentation of certain information on wine labels. DATES: Comments must be received on or before November 13, 2007. ADDRESSES: You may send comments on this notice to one of the following addresses: • https://www.regulations.gov (Federal e-rulemaking portal; follow the instructions for submitting comments); or • Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044–4412. See the Public Participation section of this notice for specific instructions and requirements for submitting comments, and for information on how to request a public hearing. You may view copies of this notice and any comments we receive about this proposal at https://www.regulations.gov. You also may view copies of this notice and any comments we receive about this proposal by appointment at the TTB Information Resource Center, 1310 G Street, NW., Washington, DC 20220. To make an appointment, call 202–927– 2400. Mari A. Kirrane, Wine Trade and Technical Advisor, Alcohol and Tobacco Tax and Trade Bureau, 221 Main Street, Suite 1340, San Francisco, CA 94105; telephone (415) 625–5793. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: Background 27 CFR Parts 4, 5, and 7 TTB Authority [Notice No. 74] Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe regulations for the labeling of wine, distilled spirits, and malt beverages. The FAA Act provides that these regulations should, among other things, prohibit consumer deception and the use of misleading statements on labels, and ensure that labels provide the consumer with adequate information as to the identity and quality of the product. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the regulations promulgated under the FAA Act. RIN 1513–AB36 Modification of Mandatory Label Information for Wine, Distilled Spirits, and Malt Beverages Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notice of proposed rulemaking; solicitation of comments. AGENCY: In this notice, the Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to amend its regulations regarding the mandatory labeling requirements for alcoholic beverages. The proposed regulatory changes would permit alcohol content to appear on other labels affixed to the container rather than on the brand label as currently required. These regulatory changes will provide greater flexibility in alcoholic beverage labeling, and will conform the TTB wine labeling regulations to the recent agreement reached by members of the World Wine yshivers on PROD1PC62 with PROPOSALS SUMMARY: VerDate Aug<31>2005 15:47 Sep 10, 2007 Jkt 211001 Current TTB Mandatory Brand Labeling Requirements for Wine Part 4 of the TTB regulations (27 CFR part 4) sets forth the requirements for labeling and advertising wine promulgated under the FAA Act. Section 4.10 (27 CFR 4.10) defines a brand label as the label carrying, in the usual distinctive design, the brand name of the wine. Section 4.32 (27 CFR 4.32) PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 prescribes mandatory label information. Section 4.32(a) requires a statement of the following on the brand label: • The brand name, in accordance with § 4.33; • The class, type, or other designation, in accordance with § 4.34; • The alcohol content, in accordance with § 4.36; and • On blends consisting of American and foreign wines, if any reference is made to the presence of foreign wine, the exact percentage by volume. In addition, § 4.32(b) lists other mandatory label information, which may appear on any label affixed to the container. Current TTB Mandatory Brand Labeling Requirements for Distilled Spirits Part 5 of the TTB regulations (27 CFR part 5) sets forth the requirements for labeling and advertising distilled spirits promulgated under the FAA Act. Section 5.11 (27 CFR 5.11) defines a brand label as the principal display panel that is most likely to be displayed, presented, shown, or examined under normal and customary conditions of display for retail sale, and any other label appearing on the same side of the bottle as the principal display panel. The principal display panel appearing on a cylindrical surface is that 40 percent of the circumference which is most likely to be displayed, presented, shown, or examined under normal and customary conditions of display for retail sale. Section 5.32 (27 CFR 5.32) prescribes mandatory label information. Section 5.32(a) requires a statement of the following on the brand label: • The brand name; • The class and type, in accordance with § 5.35; and • The alcohol content, in accordance with § 5.37. In addition, § 5.32(b) lists the mandatory label information that must appear on either the brand label or the back label, including net contents and the country of origin of imported spirits. Current TTB Mandatory Brand Labeling Requirements for Malt Beverages Part 7 of the TTB regulations (27 CFR part 7) sets forth the requirements for labeling and advertising malt beverages promulgated under the FAA Act. Section 7.10 (27 CFR 7.10) defines a brand label as the label carrying, in the usual distinctive design, the brand name of the malt beverage. Section 7.22 (27 CFR 7.22) prescribes mandatory label information. Section 7.22(a) requires a statement of the following on the brand label: • The brand name, in accordance with § 7.23; E:\FR\FM\11SEP1.SGM 11SEP1 Federal Register / Vol. 72, No. 175 / Tuesday, September 11, 2007 / Proposed Rules yshivers on PROD1PC62 with PROPOSALS • The class, in accordance with § 7.24; • The name and address (except when branded or burned in the container) in accordance with § 7.25, except as provided in § 7.22(b); • The net contents (except when blown, branded, or burned, in the container) in accordance with § 7.27; and • The alcohol content in accordance with § 7.71, for malt beverages that contain any alcohol derived from added flavors or other added nonbeverage ingredients (other than hops extract) containing alcohol. In addition, § 7.22(b) lists mandatory label information that must appear on either the brand label or on a separate label (front or back). World Wine Trade Group Agreement The World Wine Trade Group (WWTG) is a six-member informal group composed of both government officials and industry representatives from Argentina, Australia, Canada, Chile, New Zealand, and the United States. The WWTG was formed to discuss and address issues relating to international wine trade, including reducing and preventing non-tariff barriers to wine trade. An inter-agency team composed of representatives from, among others, TTB, the Food and Drug Administration, and the Departments of Commerce, State, and Agriculture, represents the U.S. Government during WWTG discussions. The Office of the U.S. Trade Representative heads the inter-agency team. The WWTG recently concluded negotiations on a wine labeling agreement intended to facilitate further wine trade among members. The WWTG Agreement on Requirements for Wine Labelling, hereinafter referred to as the ‘‘Agreement,’’ was initialed on September 20, 2006, and was signed in Canberra, Australia, on January 23, 2007. A full copy of the Agreement can be viewed at https://www.ita.doc.gov/td/ ocg/WWTGwine%20Labelling%20Agreement.pdf. These negotiations proceeded from the view that common labeling requirements would provide industry members with the opportunity to use the same label when shipping wine to each of the WWTG member countries. In the course of the negotiations, it was recognized that certain items of information are considered mandatory by most members. Referred to as ‘‘Common Mandatory Information’’ in the WWTG Agreement (hereinafter CMI), these four items are country of origin, alcohol content (by percentage of VerDate Aug<31>2005 15:47 Sep 10, 2007 Jkt 211001 volume), net contents, and product name. The negotiated Agreement also incorporates the ‘‘Single Field of Vision’’ concept for the placement of the CMI. A ‘‘Single Field of Vision’’ is any part of the surface of the container, excluding its base and cap, that can be seen without having to turn the container. Under this approach, as long as all four of the CMI elements are visible at the same time, they will meet the placement requirements (if any) of each member country. According to the terms of the Agreement, each country must permit the CMI for an imported wine to appear on any label anywhere on the wine container (except the base or cap), provided all four CMI items are in a Single Field of Vision. Conforming TTB Regulations to the WWTG Agreement The United States will not be in compliance with the Agreement if the TTB regulations are in conflict with the CMI terms of the Agreement. Accordingly, TTB has reviewed its regulations to determine if any change is necessary in order for the United States to meet its obligation to permit these four pieces of information to appear in a single field of vision on labels of imported wines, as outlined in the Agreement. The TTB regulations do not require the inclusion of the country of origin on wine labels. This requirement is contained in statutory and regulatory provisions administered by the U.S. Bureau of Customs and Border Protection (CBP; see 19 U.S.C. 1304 and 19 CFR part 134). Consistent with these requirements, the country of origin may appear on any label affixed to a container of imported wine. The product name under the Agreement is the word ‘‘wine’’ and the TTB regulations contain no specific requirements for, or restrictions on, the use of ‘‘wine’’ alone on wine labels. As already noted in this document, the TTB regulations permit net contents to appear on any label affixed to the container. Thus, the only conflict that the TTB wine label regulations have with the CMI terms of the Agreement is in the regulatory requirement for alcohol content to appear on the brand label. Although the Agreement applies only to imported wine, we note that the provisions in the TTB regulations described above that concern the labeling of wine, distilled spirits, and malt beverages all contain similar provisions regarding the placement of alcohol content on the brand label. TTB considered the question of whether allowing alcohol content to appear on a label other than the brand label for all PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 51733 three beverage groups would continue to provide consumers with adequate information regarding product identity and quality, as required under the FAA Act. In this regard, TTB notes that consumers currently may have to look beyond the brand label for alcohol beverage product identity and quality information. Specifically, under § 4.32, the required FD&C Yellow No. 5 statement may appear on a brand label or back label, the required declaration of sulfites may appear on a front, back, strip, or neck label, and the net contents generally may appear on any label affixed to the container. Under § 5.32, the required FD&C Yellow No. 5 statement may appear on the brand label or back label, the required declaration of sulfites may appear on a strip label or neck label in lieu of appearing on the front or back label, and the net contents may appear on the brand label or on a back label in the case of distilled spirits packaged in containers conforming to the standards of fill prescribed in § 5.47 or § 5.47a. Under § 7.22, the required FD&C Yellow No. 5 statement may appear on the brand label or on a separate label on the back or front. We believe that it is preferable, to the greatest extent possible, to have consistency among the labeling regulations for wine, distilled spirits, and malt beverages. Accordingly, we are proposing corresponding changes to all of those provisions regarding alcohol content statements on brand labels. In this document, we are proposing to move the alcohol content requirements from paragraph (a) of §§ 4.32, 5.32, and 7.22 (label information required to appear on a brand label) to paragraph (b) of each of those sections, which prescribes in each case mandatory label requirements for information that need not appear on the brand label. The change in § 4.32 will allow industry members to apply the WWTG ‘‘Single Field of Vision’’ concept concerning the placement of CMI on labels. The additional changes in §§ 5.32, and 7.22 will foster consistency in the labeling requirements among all TTB-regulated alcohol beverage products. This proposal is limited to removing the placement requirement for alcohol content. All other formatting requirements, such as type size and legibility, would remain the same. As previously noted, consumers are already looking beyond the brand label for product information. Moreover, the proposed rule would provide industry members with the flexibility to place alcohol content on container labels in close proximity to other consumer information, such as sulfite and FD&C Yellow No. 5 information. E:\FR\FM\11SEP1.SGM 11SEP1 51734 Federal Register / Vol. 72, No. 175 / Tuesday, September 11, 2007 / Proposed Rules Finally, we note that alcohol beverage industry members would not be required to make any changes to their current labels as a result of this regulatory change because, under the proposal, alcohol content information could still be placed on the brand label. The Agreement does not require that U.S. wine producers or importers place the four CMI elements in a Single Field of Vision, only that each country accept imported wines labeled in that way. The Single Field of Vision concept is an optional labeling format and the proposed changes to our regulations will accommodate those who wish to label their wines in that manner. Effect on Currently Approved Labels Sections 4.40, 4.50, 5.51, 5.55, 7.31 and 7.41 of the TTB regulations (27 CFR 4.40, 4.50, 5.51, 5.55, 7.31 and 7.41) generally require that regulated industry members obtain a certificate of label approval (COLA) from TTB prior to the bottling or removal of domestic wines, distilled spirits, or malt beverages, or the release of imported wines, distilled spirits, or malt beverages, in containers, from customs custody for consumption. No COLA is required for alcoholic beverages labeled for export. It is the position of TTB that, if the proposed regulatory amendment is adopted as a final rule, a new COLA would not be required if the only change made to the labels appearing on a previously issued COLA is moving the alcohol content to a label other than the brand label. Public Participation Comments Invited We invite comments from interested members of the public on this proposed rulemaking. yshivers on PROD1PC62 with PROPOSALS Submitting Comments You may submit comments on this notice by one of the following two methods: • Federal e-Rulemaking Portal: To submit a comment on this notice using the online Federal e-rulemaking portal, visit https://www.regulations.gov. and select ‘‘Alcohol and Tobacco Tax and Trade Bureau’’ from the agency dropdown menu and click ‘‘Submit.’’ In the resulting docket list, click the ‘‘Add Comments’’ icon for the appropriate Docket number and complete the resulting comment form. You may attach supplemental files to your comment. More complete information on using Regulations.gov., including instructions for accessing open and closed dockets and for submitting comments, is available through the site’s ‘‘User Tips’’ link. VerDate Aug<31>2005 15:47 Sep 10, 2007 Jkt 211001 • Mail: You may send written comments to the Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044– 4412. Please submit your comments by the closing date shown above in this notice. Your comments must include this notice number and your name and mailing address. Your comments must be legible and written in language acceptable for public disclosure. We do not acknowledge receipt of comments, and we consider all comments as originals. If you are commenting on behalf of an association, business, or other entity, your comment must include the entity’s name as well as your name and position title. If you comment via https:// www.regulations.gov., please enter the entity’s name in the ‘‘Organization’’ blank of the comment form. If you comment via mail, please submit your entity’s comment on letterhead. You may also write to the Administrator before the comment closing date to ask for a public hearing. The Administrator reserves the right to determine whether to hold a public hearing. Information Resource Center, 1310 G Street, NW., Washington, DC 20220. You may also obtain copies at 20 cents per 8.5- x 11-inch page. Contact our information specialist at the above address or by telephone at 202–927– 2400 to schedule an appointment or to request copies of comments or other materials. Confidentiality All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure. Paperwork Reduction Act Public Disclosure On the Federal e-rulemaking portal, we will post, and you may view, copies of this notice and any electronic or mailed comments we receive about this proposal. To view a posted document or comment, go to https:// www.regulations.gov. and select ‘‘Alcohol and Tobacco Tax and Trade Bureau’’ from the agency drop-down menu and click ‘‘Submit.’’ In the resulting docket list, click the appropriate docket number, then click the ‘‘View’’ icon for any document or comment posted under that docket number. All submitted and posted comments will display the commenter’s name, organization (if any), city, and State, and, in the case of mailed comments, all address information, including e-mail addresses. We may omit voluminous attachments or material that we consider unsuitable for posting. You also may view copies of this notice and any electronic or mailed comments we receive about this proposal by appointment at the TTB PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 Regulatory Analysis and Notices Executive Order 12866 We have determined that this proposed rule is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. Regulatory Flexibility Act Pursuant to the requirements of the Regulatory Flexibility Act (5 U.S.C. chapter 6), we certify that this notice of proposed rulemaking will not have a significant economic impact on a substantial number of small entities. The propose rule will not impose, or otherwise cause, a significant increase in reporting, recordkeeping, or other compliance burdens on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required. The collection of information in this rule has been previously approved by the Office of Management and Budget (OMB) under the title ‘‘Labeling and Advertising Requirements Under the Federal Alcohol Administration Act,’’ and assigned control number 1513– 0087. This proposed regulation would not result in a substantive or material change in the previously approved collection action, since the nature of the mandatory information that must appear on labels affixed to the container remains unchanged. Drafting Information Maria Mahone of the Knowledge Management Staff drafted this document. List of Subjects 27 CFR Part 4 Advertising, Customs duties and inspection, Imports, Labeling, Packaging and containers, Reporting and recordkeeping requirements, Trade practices, Wine. 27 CFR Part 5 Advertising, Customs duties and inspection, Imports, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Trade practices. E:\FR\FM\11SEP1.SGM 11SEP1 Federal Register / Vol. 72, No. 175 / Tuesday, September 11, 2007 / Proposed Rules 27 CFR Part 7 Advertising, Beer, Customs duties and inspection, Imports, Labeling, Reporting and recordkeeping requirements, Trade practices. alcohol derived from added flavors or other added nonbeverage ingredients (other than hops extract) containing alcohol. * * * * * Signed: January 8, 2007. John J. Manfreda, Administrator. Approved: May 21, 2007. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade, and Tariff Policy). Amendment to the Regulations For the reasons discussed in the preamble, TTB proposes to amend 27 CFR, parts 4, 5, and 7, as follows: PART 4—LABELING AND ADVERTISING OF WINE 1. The authority citation for part 4 continues to read as follows: Authority: 27 U.S.C. 205, unless otherwise noted. Editorial Note: This document was received at the Office of the Federal Register on September 6, 2007. [FR Doc. E7–17909 Filed 9–10–07; 8:45 am] 2. In § 4.32: a. Paragraph (a)(3) is removed and reserved; and b. A new paragraph (b)(3) is added to read as follows: § 4.32 Mandatory label information. * * * * (b) * * * (3) Alcohol content, in accordance with § 4.36. * * * * * BILLING CODE 4810–31–P DEPARTMENT OF LABOR Occupational Safety and Health Administration * 29 CFR Part 1910 [Docket No. H–010] RIN 1218–AC17 PART 5—LABELING AND ADVERTISING OF DISTILLED SPIRITS Emergency Response and Preparedness 3. The authority citation for part 5 continues to read as follows: AGENCY: Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205. 4. In § 5.32: a. Paragraph (a)(3) is removed and reserved; and b. Paragraph (b)(6) is added to read as follows: § 5.32 Mandatory label information. * * * * * (b) * * * (6) Alcohol content, in accordance with § 5.37. * * * * * PART 7—LABELING AND ADVERTISING OF MALT BEVERAGES 5. The authority citation for part 7 continues to read as follows: Authority: 27 U.S.C. 205. yshivers on PROD1PC62 with PROPOSALS 6. In § 7.22: a. Paragraph (a)(5) is removed and reserved; and b. Paragraph (b)(3) is revised to read as follows: § 7.22 Mandatory label information. * * * * * (b) * * * (3) Alcohol content, in accordance with § 7.71, when required by State law or for malt beverages that contain any VerDate Aug<31>2005 15:47 Sep 10, 2007 Jkt 211001 Occupational Safety and Health Administration (OSHA), Department of Labor. ACTION: Request for information. SUMMARY: Elements of emergency responder health and safety are currently regulated by OSHA primarily under the following standards: The Hazardous Waste Operations and Emergency Response Standard; the personal protective equipment general requirements standard; the respiratory protection standard; the permit-required confined space standard; the fire brigade standard; and the bloodborne pathogens standard. Some of these standards were promulgated decades ago, and none was designed as a comprehensive emergency response standard. Consequently, they do not address the full range of hazards or concerns currently facing emergency responders, nor do they reflect major changes in performance specifications for protective clothing and equipment. Current OSHA standards also do not reflect all the major improvements in safety and health practices that have already been accepted by the emergency response community and incorporated into industry consensus standards. OSHA is requesting information and comment from the public to evaluate what action, if any, the Agency should take to further address emergency PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 51735 response and preparedness. The Agency will be considering emergency response and preparedness at common emergencies (e.g., fires or emergency medical and other rescue situations), as well as large scale emergencies (e.g., natural and intentional disasters). OSHA’s areas of interest are primarily: personal protective equipment; training and qualifications; medical evaluation and health monitoring; and safety management. The agency will also be evaluating the types of personnel who would constitute either emergency responders or skilled support employees at such events, as well as the range of activities that might constitute emergency response and preparedness. DATES: Comments must be submitted by the following dates: Hard copy: Your comments must be submitted (postmarked or sent) by December 10, 2007. Facsimile and electronic transmission: Your comments must be sent by December 10, 2007. ADDRESSES: You may submit comments, requests for hearings and additional materials by any of the following methods: Electronically: You may submit comments, requests for hearings, and attachments electronically at https:// www.regulations.gov, which is the Federal eRulemaking Portal. Follow the instructions on-line for making electronic submissions. Fax: If your submissions, including attachments, are not longer than 10 pages, you may fax them to the OSHA Docket Office at (202) 693–1648. Mail, hand delivery, express mail, messenger or courier service: You must submit three copies of your comments, requests for hearings and attachments to the OSHA Docket Office, Docket No. S– 023B, U.S. Department of Labor, Room N–2625, 200 Constitution Avenue, NW., Washington, DC 20210. Deliveries (hand, express mail, messenger and courier service) are accepted during the Department of Labor’s and Docket Office’s normal business hours, 8:15 a.m.–4:45 p.m., e.t. Instructions: All submissions must include the Agency name and the OSHA docket number for this rulemaking (OSHA Docket No. S–023B). Submissions, including any personal information you provide, are placed in the public docket without change and may be made available online at https://www.regulations.gov. Docket: To read or download submissions or other material in the docket, go to https://www.regulations.gov or the OSHA Docket Office at the address above. All documents in the E:\FR\FM\11SEP1.SGM 11SEP1

Agencies

[Federal Register Volume 72, Number 175 (Tuesday, September 11, 2007)]
[Proposed Rules]
[Pages 51732-51735]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17909]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 4, 5, and 7

[Notice No. 74]
RIN 1513-AB36


Modification of Mandatory Label Information for Wine, Distilled 
Spirits, and Malt Beverages

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking; solicitation of comments.

-----------------------------------------------------------------------

SUMMARY: In this notice, the Alcohol and Tobacco Tax and Trade Bureau 
(TTB) proposes to amend its regulations regarding the mandatory 
labeling requirements for alcoholic beverages. The proposed regulatory 
changes would permit alcohol content to appear on other labels affixed 
to the container rather than on the brand label as currently required. 
These regulatory changes will provide greater flexibility in alcoholic 
beverage labeling, and will conform the TTB wine labeling regulations 
to the recent agreement reached by members of the World Wine Trade 
Group regarding the presentation of certain information on wine labels.

DATES: Comments must be received on or before November 13, 2007.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
     https://www.regulations.gov (Federal e-rulemaking portal; 
follow the instructions for submitting comments); or
     Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.
    You may view copies of this notice and any comments we receive 
about this proposal at https://www.regulations.gov. You also may view 
copies of this notice and any comments we receive about this proposal 
by appointment at the TTB Information Resource Center, 1310 G Street, 
NW., Washington, DC 20220. To make an appointment, call 202-927-2400.

FOR FURTHER INFORMATION CONTACT: Mari A. Kirrane, Wine Trade and 
Technical Advisor, Alcohol and Tobacco Tax and Trade Bureau, 221 Main 
Street, Suite 1340, San Francisco, CA 94105; telephone (415) 625-5793.

SUPPLEMENTARY INFORMATION:

Background

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels, and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the 
regulations promulgated under the FAA Act.

Current TTB Mandatory Brand Labeling Requirements for Wine

    Part 4 of the TTB regulations (27 CFR part 4) sets forth the 
requirements for labeling and advertising wine promulgated under the 
FAA Act. Section 4.10 (27 CFR 4.10) defines a brand label as the label 
carrying, in the usual distinctive design, the brand name of the wine. 
Section 4.32 (27 CFR 4.32) prescribes mandatory label information. 
Section 4.32(a) requires a statement of the following on the brand 
label:
     The brand name, in accordance with Sec.  4.33;
     The class, type, or other designation, in accordance with 
Sec.  4.34;
     The alcohol content, in accordance with Sec.  4.36; and
     On blends consisting of American and foreign wines, if any 
reference is made to the presence of foreign wine, the exact percentage 
by volume.
    In addition, Sec.  4.32(b) lists other mandatory label information, 
which may appear on any label affixed to the container.

Current TTB Mandatory Brand Labeling Requirements for Distilled Spirits

    Part 5 of the TTB regulations (27 CFR part 5) sets forth the 
requirements for labeling and advertising distilled spirits promulgated 
under the FAA Act. Section 5.11 (27 CFR 5.11) defines a brand label as 
the principal display panel that is most likely to be displayed, 
presented, shown, or examined under normal and customary conditions of 
display for retail sale, and any other label appearing on the same side 
of the bottle as the principal display panel. The principal display 
panel appearing on a cylindrical surface is that 40 percent of the 
circumference which is most likely to be displayed, presented, shown, 
or examined under normal and customary conditions of display for retail 
sale. Section 5.32 (27 CFR 5.32) prescribes mandatory label 
information. Section 5.32(a) requires a statement of the following on 
the brand label:
     The brand name;
     The class and type, in accordance with Sec.  5.35; and
     The alcohol content, in accordance with Sec.  5.37.
    In addition, Sec.  5.32(b) lists the mandatory label information 
that must appear on either the brand label or the back label, including 
net contents and the country of origin of imported spirits.

Current TTB Mandatory Brand Labeling Requirements for Malt Beverages

    Part 7 of the TTB regulations (27 CFR part 7) sets forth the 
requirements for labeling and advertising malt beverages promulgated 
under the FAA Act. Section 7.10 (27 CFR 7.10) defines a brand label as 
the label carrying, in the usual distinctive design, the brand name of 
the malt beverage. Section 7.22 (27 CFR 7.22) prescribes mandatory 
label information. Section 7.22(a) requires a statement of the 
following on the brand label:
     The brand name, in accordance with Sec.  7.23;

[[Page 51733]]

     The class, in accordance with Sec.  7.24;
     The name and address (except when branded or burned in the 
container) in accordance with Sec.  7.25, except as provided in Sec.  
7.22(b);
     The net contents (except when blown, branded, or burned, 
in the container) in accordance with Sec.  7.27; and
     The alcohol content in accordance with Sec.  7.71, for 
malt beverages that contain any alcohol derived from added flavors or 
other added nonbeverage ingredients (other than hops extract) 
containing alcohol.
    In addition, Sec.  7.22(b) lists mandatory label information that 
must appear on either the brand label or on a separate label (front or 
back).

World Wine Trade Group Agreement

    The World Wine Trade Group (WWTG) is a six-member informal group 
composed of both government officials and industry representatives from 
Argentina, Australia, Canada, Chile, New Zealand, and the United 
States. The WWTG was formed to discuss and address issues relating to 
international wine trade, including reducing and preventing non-tariff 
barriers to wine trade.
    An inter-agency team composed of representatives from, among 
others, TTB, the Food and Drug Administration, and the Departments of 
Commerce, State, and Agriculture, represents the U.S. Government during 
WWTG discussions. The Office of the U.S. Trade Representative heads the 
inter-agency team.
    The WWTG recently concluded negotiations on a wine labeling 
agreement intended to facilitate further wine trade among members. The 
WWTG Agreement on Requirements for Wine Labelling, hereinafter referred 
to as the ``Agreement,'' was initialed on September 20, 2006, and was 
signed in Canberra, Australia, on January 23, 2007. A full copy of the 
Agreement can be viewed at https://www.ita.doc.gov/td/ocg/WWTG-
wine%20Labelling%20Agreement.pdf. These negotiations proceeded from the 
view that common labeling requirements would provide industry members 
with the opportunity to use the same label when shipping wine to each 
of the WWTG member countries.
    In the course of the negotiations, it was recognized that certain 
items of information are considered mandatory by most members. Referred 
to as ``Common Mandatory Information'' in the WWTG Agreement 
(hereinafter CMI), these four items are country of origin, alcohol 
content (by percentage of volume), net contents, and product name. The 
negotiated Agreement also incorporates the ``Single Field of Vision'' 
concept for the placement of the CMI. A ``Single Field of Vision'' is 
any part of the surface of the container, excluding its base and cap, 
that can be seen without having to turn the container. Under this 
approach, as long as all four of the CMI elements are visible at the 
same time, they will meet the placement requirements (if any) of each 
member country. According to the terms of the Agreement, each country 
must permit the CMI for an imported wine to appear on any label 
anywhere on the wine container (except the base or cap), provided all 
four CMI items are in a Single Field of Vision.

Conforming TTB Regulations to the WWTG Agreement

    The United States will not be in compliance with the Agreement if 
the TTB regulations are in conflict with the CMI terms of the 
Agreement. Accordingly, TTB has reviewed its regulations to determine 
if any change is necessary in order for the United States to meet its 
obligation to permit these four pieces of information to appear in a 
single field of vision on labels of imported wines, as outlined in the 
Agreement. The TTB regulations do not require the inclusion of the 
country of origin on wine labels. This requirement is contained in 
statutory and regulatory provisions administered by the U.S. Bureau of 
Customs and Border Protection (CBP; see 19 U.S.C. 1304 and 19 CFR part 
134). Consistent with these requirements, the country of origin may 
appear on any label affixed to a container of imported wine. The 
product name under the Agreement is the word ``wine'' and the TTB 
regulations contain no specific requirements for, or restrictions on, 
the use of ``wine'' alone on wine labels. As already noted in this 
document, the TTB regulations permit net contents to appear on any 
label affixed to the container. Thus, the only conflict that the TTB 
wine label regulations have with the CMI terms of the Agreement is in 
the regulatory requirement for alcohol content to appear on the brand 
label.
    Although the Agreement applies only to imported wine, we note that 
the provisions in the TTB regulations described above that concern the 
labeling of wine, distilled spirits, and malt beverages all contain 
similar provisions regarding the placement of alcohol content on the 
brand label. TTB considered the question of whether allowing alcohol 
content to appear on a label other than the brand label for all three 
beverage groups would continue to provide consumers with adequate 
information regarding product identity and quality, as required under 
the FAA Act. In this regard, TTB notes that consumers currently may 
have to look beyond the brand label for alcohol beverage product 
identity and quality information. Specifically, under Sec.  4.32, the 
required FD&C Yellow No. 5 statement may appear on a brand label or 
back label, the required declaration of sulfites may appear on a front, 
back, strip, or neck label, and the net contents generally may appear 
on any label affixed to the container. Under Sec.  5.32, the required 
FD&C Yellow No. 5 statement may appear on the brand label or back 
label, the required declaration of sulfites may appear on a strip label 
or neck label in lieu of appearing on the front or back label, and the 
net contents may appear on the brand label or on a back label in the 
case of distilled spirits packaged in containers conforming to the 
standards of fill prescribed in Sec.  5.47 or Sec.  5.47a. Under Sec.  
7.22, the required FD&C Yellow No. 5 statement may appear on the brand 
label or on a separate label on the back or front.
    We believe that it is preferable, to the greatest extent possible, 
to have consistency among the labeling regulations for wine, distilled 
spirits, and malt beverages. Accordingly, we are proposing 
corresponding changes to all of those provisions regarding alcohol 
content statements on brand labels.
    In this document, we are proposing to move the alcohol content 
requirements from paragraph (a) of Sec. Sec.  4.32, 5.32, and 7.22 
(label information required to appear on a brand label) to paragraph 
(b) of each of those sections, which prescribes in each case mandatory 
label requirements for information that need not appear on the brand 
label. The change in Sec.  4.32 will allow industry members to apply 
the WWTG ``Single Field of Vision'' concept concerning the placement of 
CMI on labels. The additional changes in Sec. Sec.  5.32, and 7.22 will 
foster consistency in the labeling requirements among all TTB-regulated 
alcohol beverage products.
    This proposal is limited to removing the placement requirement for 
alcohol content. All other formatting requirements, such as type size 
and legibility, would remain the same. As previously noted, consumers 
are already looking beyond the brand label for product information. 
Moreover, the proposed rule would provide industry members with the 
flexibility to place alcohol content on container labels in close 
proximity to other consumer information, such as sulfite and FD&C 
Yellow No. 5 information.

[[Page 51734]]

    Finally, we note that alcohol beverage industry members would not 
be required to make any changes to their current labels as a result of 
this regulatory change because, under the proposal, alcohol content 
information could still be placed on the brand label. The Agreement 
does not require that U.S. wine producers or importers place the four 
CMI elements in a Single Field of Vision, only that each country accept 
imported wines labeled in that way. The Single Field of Vision concept 
is an optional labeling format and the proposed changes to our 
regulations will accommodate those who wish to label their wines in 
that manner.

Effect on Currently Approved Labels

    Sections 4.40, 4.50, 5.51, 5.55, 7.31 and 7.41 of the TTB 
regulations (27 CFR 4.40, 4.50, 5.51, 5.55, 7.31 and 7.41) generally 
require that regulated industry members obtain a certificate of label 
approval (COLA) from TTB prior to the bottling or removal of domestic 
wines, distilled spirits, or malt beverages, or the release of imported 
wines, distilled spirits, or malt beverages, in containers, from 
customs custody for consumption. No COLA is required for alcoholic 
beverages labeled for export. It is the position of TTB that, if the 
proposed regulatory amendment is adopted as a final rule, a new COLA 
would not be required if the only change made to the labels appearing 
on a previously issued COLA is moving the alcohol content to a label 
other than the brand label.

Public Participation

Comments Invited

    We invite comments from interested members of the public on this 
proposed rulemaking.

Submitting Comments

    You may submit comments on this notice by one of the following two 
methods:
     Federal e-Rulemaking Portal: To submit a comment on this 
notice using the online Federal e-rulemaking portal, visit https://
www.regulations.gov. and select ``Alcohol and Tobacco Tax and Trade 
Bureau'' from the agency drop-down menu and click ``Submit.'' In the 
resulting docket list, click the ``Add Comments'' icon for the 
appropriate Docket number and complete the resulting comment form. You 
may attach supplemental files to your comment. More complete 
information on using Regulations.gov., including instructions for 
accessing open and closed dockets and for submitting comments, is 
available through the site's ``User Tips'' link.
     Mail: You may send written comments to the Director, 
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade 
Bureau, P.O. Box 14412, Washington, DC 20044-4412.
    Please submit your comments by the closing date shown above in this 
notice. Your comments must include this notice number and your name and 
mailing address. Your comments must be legible and written in language 
acceptable for public disclosure. We do not acknowledge receipt of 
comments, and we consider all comments as originals.
    If you are commenting on behalf of an association, business, or 
other entity, your comment must include the entity's name as well as 
your name and position title. If you comment via https://
www.regulations.gov., please enter the entity's name in the 
``Organization'' blank of the comment form. If you comment via mail, 
please submit your entity's comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    On the Federal e-rulemaking portal, we will post, and you may view, 
copies of this notice and any electronic or mailed comments we receive 
about this proposal. To view a posted document or comment, go to http:/
/www.regulations.gov. and select ``Alcohol and Tobacco Tax and Trade 
Bureau'' from the agency drop-down menu and click ``Submit.'' In the 
resulting docket list, click the appropriate docket number, then click 
the ``View'' icon for any document or comment posted under that docket 
number.
    All submitted and posted comments will display the commenter's 
name, organization (if any), city, and State, and, in the case of 
mailed comments, all address information, including e-mail addresses. 
We may omit voluminous attachments or material that we consider 
unsuitable for posting.
    You also may view copies of this notice and any electronic or 
mailed comments we receive about this proposal by appointment at the 
TTB Information Resource Center, 1310 G Street, NW., Washington, DC 
20220. You may also obtain copies at 20 cents per 8.5- x 11-inch page. 
Contact our information specialist at the above address or by telephone 
at 202-927-2400 to schedule an appointment or to request copies of 
comments or other materials.

Regulatory Analysis and Notices

Executive Order 12866

    We have determined that this proposed rule is not a significant 
regulatory action as defined in Executive Order 12866. Therefore, a 
regulatory assessment is not required.

Regulatory Flexibility Act

    Pursuant to the requirements of the Regulatory Flexibility Act (5 
U.S.C. chapter 6), we certify that this notice of proposed rulemaking 
will not have a significant economic impact on a substantial number of 
small entities. The propose rule will not impose, or otherwise cause, a 
significant increase in reporting, recordkeeping, or other compliance 
burdens on a substantial number of small entities. Accordingly, a 
regulatory flexibility analysis is not required.

Paperwork Reduction Act

    The collection of information in this rule has been previously 
approved by the Office of Management and Budget (OMB) under the title 
``Labeling and Advertising Requirements Under the Federal Alcohol 
Administration Act,'' and assigned control number 1513-0087. This 
proposed regulation would not result in a substantive or material 
change in the previously approved collection action, since the nature 
of the mandatory information that must appear on labels affixed to the 
container remains unchanged.

Drafting Information

    Maria Mahone of the Knowledge Management Staff drafted this 
document.

List of Subjects

27 CFR Part 4

    Advertising, Customs duties and inspection, Imports, Labeling, 
Packaging and containers, Reporting and recordkeeping requirements, 
Trade practices, Wine.

27 CFR Part 5

    Advertising, Customs duties and inspection, Imports, Labeling, 
Liquors, Packaging and containers, Reporting and recordkeeping 
requirements, Trade practices.

[[Page 51735]]

27 CFR Part 7

    Advertising, Beer, Customs duties and inspection, Imports, 
Labeling, Reporting and recordkeeping requirements, Trade practices.

Amendment to the Regulations

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR, parts 4, 5, and 7, as follows:

PART 4--LABELING AND ADVERTISING OF WINE

    1. The authority citation for part 4 continues to read as follows:

    Authority: 27 U.S.C. 205, unless otherwise noted.

    2. In Sec.  4.32:
    a. Paragraph (a)(3) is removed and reserved; and
    b. A new paragraph (b)(3) is added to read as follows:


Sec.  4.32  Mandatory label information.

* * * * *
    (b) * * *
    (3) Alcohol content, in accordance with Sec.  4.36.
* * * * *

PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS

    3. The authority citation for part 5 continues to read as follows:

    Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205.

    4. In Sec.  5.32:
    a. Paragraph (a)(3) is removed and reserved; and
    b. Paragraph (b)(6) is added to read as follows:


Sec.  5.32  Mandatory label information.

* * * * *
    (b) * * *
    (6) Alcohol content, in accordance with Sec.  5.37.
* * * * *

PART 7--LABELING AND ADVERTISING OF MALT BEVERAGES

    5. The authority citation for part 7 continues to read as follows:


    Authority: 27 U.S.C. 205.

    6. In Sec.  7.22:
    a. Paragraph (a)(5) is removed and reserved; and
    b. Paragraph (b)(3) is revised to read as follows:


Sec.  7.22  Mandatory label information.

* * * * *
    (b) * * *
    (3) Alcohol content, in accordance with Sec.  7.71, when required 
by State law or for malt beverages that contain any alcohol derived 
from added flavors or other added nonbeverage ingredients (other than 
hops extract) containing alcohol.
* * * * *

    Signed: January 8, 2007.
John J. Manfreda,
Administrator.
    Approved: May 21, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).

    Editorial Note: This document was received at the Office of the 
Federal Register on September 6, 2007.

 [FR Doc. E7-17909 Filed 9-10-07; 8:45 am]
BILLING CODE 4810-31-P
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