Standards of Identity for Pisco and Cognac, 18146-18149 [2012-7256]
Download as PDF
<![CDATA[
18146
Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules
rulemaking (REG–168745–03), which
was published in the Federal Register
relating to sections 162, and 263,
providing guidance on the deduction
and capitalization of expenditures
related to tangible property.
Effective Date: March 27, 2012
and is applicable on or after December
27, 2011.
DATES:
FOR FURTHER INFORMATION CONTACT:
Merrill Feldstein at (202) 622–4950, not
a toll-free number.
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
that is the subject of these corrections
are under sections 162, 167, 168, and
263 of the Internal Revenue Code.
As published on December 27, 2011
(76 FR 81128), the notice of proposed
rulemaking (REG–168745–03), contains
errors which may prove to be
misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking (REG–
168745–03), which were the subject of
FR. Doc. 2011–32024, is corrected as
follows:
List of Subjects in 26 CFR part 1
PART 1—INCOME TAXES
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.162–3 is corrected to
read as follows:
mstockstill on DSK4VPTVN1PROD with PROPOSALS
[Corrected]
Materials and supplies.
[The text of the proposed
amendments to § 1.163–3 (a) through (j)
is the same as the text of § 1.163–3T(a)
through (j) published elsewhere in this
issue of the Federal Register.]
BILLING CODE 4830–01–P
VerDate Mar<15>2010
15:56 Mar 26, 2012
Jkt 226001
RIN 1545–BE18
Guidance Regarding Deduction and
Capitalization of Expenditures Related
to Tangible Property; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking;
Correction.
AGENCY:
This document contains
corrections to a notice of proposed
rulemaking (REG–168745–03), which
was published in the Federal Register
relating to sections 162, and 263
providing guidance on the deduction
and capitalization of expenditures
related to tangible property.
DATES: Effective Date: March 27, 2012.
FOR FURTHER INFORMATION CONTACT:
Merrill D. Feldstein at (202) 622–4950
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
that is the subject of these corrections is
under sections 162, 167, 168, and 263 of
the Internal Revenue Code.
Hearing’’ the language ‘‘for April 4,
2012, beginning at 10 a.m.’’ is corrected
to read ‘‘for May 9, 2012, beginning at
10 a.m.’’.
4. On page 81128, column three, line
three in the preamble under the caption
‘‘Drafting Information’’, the language
‘‘Katherine Reed, Office of the
Associate’’ is corrected to read
‘‘Kathleen Reed, Office of the
Associate’’.
5. On page 81130, column one, Par.
11., item one is redesignated as item 3
and the language ‘‘Revising paragraphs
(a) through (l)(1); and’’ is corrected to
read as ‘‘Revising paragraphs (a) through
(h) and revising paragraphs (j) through
(l)(1).’’
6. On page 81130, column one, under
Par. 11. instructions, newly
redesignated item one reads as
‘‘Removing paragraphs (l), (l)(1), (l)(2)
and (l)(3) and redesignating paragraphs
(k), (k)(1), (k)(2), and (k)(3) as
paragraphs (l), (l)(1), (l)(2) and (l)(3)
respectively.’’
7. On page 81130, column one, under
Par. 11. instructions, newly
redesignated paragraph item 2 is
corrected to read as ‘‘Redesignating
paragraph (j) as paragraph (k) and
redesignating paragraph (i) as paragraph
(j), and adding a new paragraph (i).’’
8. On page 81130, column one, under
Par. 11. instructions, newly
redesignated item 4 reads as ‘‘Adding
paragraph (m).’’
Guy R. Traynor,
Federal Register Liaison, Publications and
Regulations, Legal Processing Division,
Associate Chief Counsel, Procedure and
Administration.
[FR Doc. 2012–7266 Filed 3–26–12; 8:45 am]
BILLING CODE 4830–01–P
Correction of Publication
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
[FR Doc. 2012–7267 Filed 3–26–12; 8:45 am]
[REG–168745–03]
As published on December 27, 2011
(76 FR 81128), the notice of proposed
rulemaking (REG–168745–03), contains
errors which may prove to be
misleading and are in need of
clarification.
Accordingly, 26 CFR part 1 is
corrected my making the following
correcting amendment:
Guy R. Traynor,
Federal Register Liaison, Publications and
Regulations, Legal Processing Division,
Associate Chief Counsel, Procedure and
Administration.
26 CFR Part 1
Need for Correction
Income taxes, Reporting and
recordkeeping requirements.
§ 1.162–3
Internal Revenue Service
SUMMARY:
Need for Correction
§ 1.162–3
DEPARTMENT OF THE TREASURY
Accordingly, the publication of the
notice of proposed rulemaking (REG–
168745–03), which were the subject of
FR. Doc. 2011–32024, is corrected as
follows:
1. On page 81128, column one, in the
preamble under the caption DATES, lines
one, two and three, the language
‘‘Written and/or electronic comments
and requests for a public hearing must
be received by March 26,’’ is corrected
to read ‘‘Written and/or electronic
comments must be received by March
26,’’.
2. On page 81128, column one, line 6
under the caption DATES, the language
‘‘hearing scheduled for April 4, 2012 at’’
is corrected to read ‘‘hearing scheduled
for May 9, 2012 at’’.
3. On page 81128, column three, line
two of the second paragraph under the
caption ‘‘Comments and Public
PO 00000
Frm 00038
Fmt 4702
Sfmt 4702
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Part 5
[Docket No. TTB–2012–0001; Notice No.
126]
RIN 1513–AB91
Standards of Identity for Pisco and
Cognac
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
In this document, the Alcohol
and Tobacco Tax and Trade Bureau
proposes to amend its regulations
setting forth the standards of identity for
distilled spirits to include Pisco as a
SUMMARY:
E:\FR\FM\27MRP1.SGM
27MRP1
Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules
type of brandy that must be
manufactured in accordance with the
laws and regulations of either Peru or
Chile, as appropriate, governing the
manufacture of those products. This
change will remove ‘‘Pisco brandy’’
from the list of examples of geographical
designations in the distilled spirits
standards of identity. This document
also includes a technical correction to
remove ‘‘Cognac’’ from the same list of
examples. These changes will provide
greater clarity in distilled spirits
labeling.
Comments must be received on
or before May 29, 2012.
ADDRESSES: You may send comments on
this document to one of the following
addresses:
• https://www.regulations.gov (via the
online comment form for this document
as posted within Docket No. TTB–2012–
0001 at ‘‘Regulations.gov,’’ the Federal
e-rulemaking portal);
• Mail: Director, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, P.O. Box 14412,
Washington, DC 20044–4412; or
• Hand delivery/courier in lieu of
mail: Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street NW., Suite
200–E, Washington, DC 20005.
See the Public Participation section of
this document for specific instructions
and requirements for submitting
comments, and for information on how
to request a public hearing.
You may view copies of this
document, selected supporting
materials, and any comments we receive
about this proposal at https://
www.regulations.gov within Docket No.
TTB–2012–0001. A direct link to this
docket is posted on the TTB Web site at
https://www.ttb.gov/spirits/spiritsrulemaking.shtml under Notice No. 126.
You also may view copies of this
document, all related supporting
materials, and any comments we receive
about this proposal by appointment at
the TTB Information Resource Center,
1310 G Street NW., Washington, DC
20005. Please call 202–453–2270 to
make an appointment.
FOR FURTHER INFORMATION CONTACT:
Karen E. Welch, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street
NW., Box 12, Washington, DC 20005;
telephone 202–453–1039, ext. 046;
email ITD@ttb.gov.
SUPPLEMENTARY INFORMATION:
mstockstill on DSK4VPTVN1PROD with PROPOSALS
DATES:
Background
TTB Authority
Section 105(e) of the Federal Alcohol
Administration Act (FAA Act), codified
VerDate Mar<15>2010
15:56 Mar 26, 2012
Jkt 226001
18147
in the United States Code at 27 U.S.C.
205(e), authorizes the Secretary of the
Treasury (Secretary) to prescribe
regulations relating to the packaging,
marking, branding, labeling, and size
and fill of containers of alcohol
beverages that will prohibit consumer
deception and provide the consumer
with adequate information as to the
identity and quality of the product.
Section 105(e) of the FAA Act also
generally requires bottlers and importers
of alcohol beverages to obtain
certificates of label approval prior to
bottling or importing alcohol beverages
for sale in interstate commerce.
Regulations implementing those
provisions of section 105(e) as they
relate to distilled spirits are set forth in
part 5 of title 27 of the Code of Federal
Regulations (27 CFR part 5). The
Alcohol and Tobacco Tax and Trade
Bureau (TTB) administers the FAA Act
pursuant to section 111(d) of the
Homeland Security Act of 2002,
codified at 6 U.S.C. 531(d). The
Secretary has delegated various
authorities through Treasury
Department Order 120–01 (Revised),
dated January 21, 2003, to the TTB
Administrator to perform the functions
and duties in the administration and
enforcement of this law.
according to various classes and types.
As used in § 5.22, the term ‘‘class’’ refers
to a general category of spirits, such as
‘‘whisky’’ or ‘‘brandy.’’ Currently, there
are 12 different classes of distilled
spirits recognized in § 5.22, including
whisky, rum, and brandy. The term
‘‘type’’ refers to a subcategory within a
class of spirits. For example, ‘‘Cognac’’
is a type of brandy, and ‘‘Canadian
whisky’’ is a type of whisky.
Certificates of Label Approval
TTB’s regulations prohibit the release
of bottled distilled spirits from customs
custody for consumption unless an
approved Certificate of Label Approval
(COLA) covering the product has been
deposited with the appropriate Customs
officer at the port of entry. See 27 CFR
5.51. The TTB regulations also generally
prohibit the bottling or removal from a
plant of distilled spirits unless the
proprietor possesses a COLA covering
the labels on the bottle. See 27 CFR
5.55.
International Agreements
Pursuant to the United States–Peru
Trade Promotion Agreement, the United
´
States recognized Pisco Peru as a
distinctive product of Peru (Article
2.12(2) of the Agreement). Accordingly,
the United States agreed not to permit
´
the sale of any product as Pisco Peru
unless it has been manufactured in Peru
in accordance with the laws and
regulations of Peru governing Pisco.
In addition, pursuant to the United
States–Chile Free Trade Agreement, the
United States recognized Pisco Chileno
(Chilean Pisco) as a distinctive product
of Chile (Article 3.15(2) of the
Agreement). Accordingly, the United
States agreed not to permit the sale of
any product as Pisco Chileno (Chilean
Pisco) unless it has been manufactured
in Chile in accordance with the laws
and regulations of Chile governing the
manufacture of Pisco.
In like manner, Peru and Chile agreed,
respectively, to recognize Bourbon
Whiskey and Tennessee Whiskey
(which is defined in both Agreements as
a straight Bourbon Whiskey authorized
to be produced only in the State of
Tennessee), as distinctive products of
the United States, and not to permit the
sale of any product as Bourbon Whiskey
or Tennessee Whiskey unless it has
been manufactured in the United States
in accordance with the laws and
Classes and Types of Spirits
The TTB labeling regulations require
that the class and type of distilled
spirits appear on the product’s brand
label. See 27 CFR 5.32(a)(2) and 5.35.
Those regulations provide that the class
and type must be stated in conformity
with § 5.22 of the TTB regulations (27
CFR 5.22) if defined therein. Otherwise,
the product must be designated in
accordance with trade and consumer
understanding thereof, or, if no such
understanding exists, by a distinctive or
fanciful name, and in either case (with
limited exceptions), followed by a
truthful and adequate statement of
composition.
Section 5.22 establishes standards of
identity for distilled spirits products
and categorizes these products
PO 00000
Frm 00039
Fmt 4702
Sfmt 4702
Brandy and Pisco
Brandy is Class 4 in the standards of
identity, where it is defined in § 5.22(d)
as ‘‘an alcoholic distillate from the
fermented juice, mash, or wine of fruit,
or from the residue thereof, produced at
less than 190° proof in such manner that
the distillate possesses the taste, aroma,
and characteristics generally attributed
to the product, and bottled at not less
than 80° proof.’’ ‘‘Pisco’’ is a term
recognized by both the governments of
Peru and Chile as a designation for a
distilled spirits product made from
grapes. However, ‘‘Pisco brandy’’ is not
currently listed as a type of brandy in
Class 4. Rather, it is provided in Class
11, at § 5.22(k)(3), as an example of a
geographical name that is not a name for
a distinctive type of distilled spirits, and
that has not become generic.
E:\FR\FM\27MRP1.SGM
27MRP1
18148
Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules
regulations of the United States
governing the manufacture of Bourbon
Whiskey and Tennessee Whiskey. (TTB
notes that there are alternative spellings
for the same term—‘‘whisky’’ in the TTB
regulations in 27 CFR part 5 and
‘‘whiskey’’ in the Agreements with Peru
and Chile.)
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Pisco Production
‘‘The Oxford Companion to Wine’’
(Jancis Robinson, ed., Oxford University
Press, 2d ed., 2001, p. 536) reports that
Spanish colonists began producing
aguardiente (grape spirits) in both Peru
and Chile since the sixteenth century, in
addition to describing the spirits
produced in the area near the town of
Pisco in Peru. Further, ‘‘The Oxford
Companion to Wine’’ says ‘‘Pisco’’ is an
aromatic brandy made in Peru, Chile,
and Bolivia, mainly from Moscatel
(muscat) grapes.’’ According to ‘‘Alexis
Lichine’s Encyclopedia of Wines and
Spirits’’ (Alexis Lichine, ed., 5th ed.,
Alfred A. Knopf, Inc., 1987), ‘‘Pisco
brandy’’ is brandy distilled from Muscat
wine in Peru, Chile, Argentina, and
Bolivia. Peru and Chile have
promulgated standards for the
production of Pisco, which, under both
countries’ respective regulations, is
distilled from grapes that were grown in
delimited geographical areas.
TTB Regulatory Proposal
After reviewing the standards of
identity in 27 CFR part 5, TTB’s COLA
database, and the laws and regulations
of Peru and Chile, TTB has determined
that amending § 5.22 is appropriate to
clarify the status of Pisco under the
standards of identity.
TTB believes that Pisco generally
meets the U.S. standard for brandy and
should be classified as a type of brandy.
TTB also believes that evidence suggests
that the generally recognized
geographical limits of the Piscoproducing areas do not extend beyond
the boundaries of Chile and Peru. The
wine and spirits authorities cited above
indicate that Pisco production is not
associated with any areas outside of
South America. COLAs naming ‘‘Pisco’’
as the brand name or fanciful name of
a distilled spirits product are almost
exclusively for products from Chile and
Peru. TTB could not locate any COLAs
naming ‘‘Pisco’’ as the brand name or
fanciful name for any products from
Argentina, or from any other country in
South America with the exception of
Peru, Chile, and Bolivia. COLAs for
products from Bolivia that name
‘‘Pisco’’ as the brand name or fanciful
name also use the term ‘‘Singani.’’ ‘‘The
Oxford Companion to Wine’’ defines
‘‘Singani’’ as an ‘‘aromatic grape-based
VerDate Mar<15>2010
15:56 Mar 26, 2012
Jkt 226001
spirit rather like pisco in that it is high
in terpenes and made under a strictly
controlled regime, principally from
Muscat of Alexandria grapes’’ and a
specialty of Bolivia (Robinson, p. 638).
Bolivia maintains standards for Singani
production in Bolivia, but does not have
standards for Pisco production.
Therefore, TTB proposes to amend the
standard of identity in § 5.22(d) by
adding Pisco as a type of brandy that is
manufactured in Peru or Chile in
compliance with the laws of the country
of production regulating the
manufacture of Pisco. The proposed
amendment also recognizes the phrases
´
‘‘Pisco Peru’’ (with or without the
´
diacritic mark, i.e., ‘‘Pisco Peru’’ or
‘‘Pisco Peru’’), ‘‘Pisco Chileno,’’ and
‘‘Chilean Pisco,’’ as equivalent class and
type names of the product, to reflect the
provisions of the trade agreements.
Further, if Pisco is recognized as a type
of brandy, persons who distribute it in
the United States will be entitled to
label the product according to its type
designation ‘‘Pisco’’ without the term
‘‘brandy’’ on the label, in the same way
that a product labeled with the type
designation ‘‘Cognac’’ is not required to
also bear the class designation
‘‘brandy.’’
TTB notes that the Peruvian standard
allows products designated as Pisco to
have an alcohol content ranging from 38
to 48 percent alcohol by volume, and
the Chilean standard allows products
designated as Pisco to have an alcohol
content as low as 30 percent alcohol by
volume. However, since the standard
proposed in this document would
identify Pisco as a type of brandy, and
the U.S. standard requires that brandy
must be bottled at not less than 40
percent alcohol by volume, any Pisco
imported into the United States would
have to conform to this minimum
bottling proof requirement. A product
that is bottled at below 40 percent
alcohol by volume would fall outside
this class and type designation.
Depending on the way that such a
product is manufactured, it could be
labeled as a ‘‘diluted Pisco’’ or as a
distilled spirits specialty product
bearing a statement of composition.
Finally, TTB believes that it is
appropriate to remove both ‘‘Pisco
brandy’’ and ‘‘Cognac’’ from § 5.22(k)(3),
where they are listed as examples of
geographical names that are not names
for distinctive types of distilled spirits,
and that have not become generic. Pisco
will appear in new § 5.22(d)(9), where it
will be a type of brandy defined as grape
brandy manufactured in Peru or Chile in
accordance with the laws and
regulations governing the manufacture
of Pisco of the country of manufacture.
PO 00000
Frm 00040
Fmt 4702
Sfmt 4702
Cognac currently appears in
§ 5.22(d)(2), where it is a type of brandy
defined as ‘‘grape brandy distilled in the
Cognac region of France, which is
entitled to be so designated by the laws
and regulations of the French
Government.’’ The inclusion of
‘‘Cognac’’ in the list of examples of
geographical names that are not names
for distinctive types of distilled spirits,
and that have not become generic, in
§ 5.22(k)(3) is duplicative and
confusing. Accordingly, TTB proposes
to remove the reference to Cognac in
§ 5.22(k)(3) as a technical correction to
the regulations.
Effect on Currently Approved Labels
If finalized, this change to the
regulations would revoke by operation
of regulation any COLAs that specify
‘‘Pisco’’ as the class and type or brand
name or fanciful name of distilled
spirits products that are not products of
Peru or Chile. TTB has searched its
COLA database, and believes that this
rulemaking will affect only a small
number of labels.
Public Participation
Comments Invited
We invite comments from interested
members of the public on this proposed
rulemaking.
Submitting Comments
Please submit your comments by the
closing date shown above in this notice.
You may submit comments in one of the
following three ways:
• Federal e-Rulemaking Portal: You
may send comments via the online
comment form associated with this
notice in Docket No. TTB–2012–0001 on
‘‘Regulations.gov,’’ the Federal erulemaking portal, at https://
www.regulations.gov. A direct link to
that docket is available under Notice
No. 126 on the TTB Web site at
https://www.ttb.gov/spirits/spiritsrulemaking.shtml. Supplemental files
may be attached to comments submitted
via Regulations.gov. For information on
how to use Regulations.gov, click on the
site’s Help tabs.
• U.S. Mail: You may send comments
via postal mail to the Director,
Regulations and Rulings Division,
Alcohol and Tobacco Tax and Trade
Bureau, P.O. Box 14412, Washington,
DC 20044–4412.
• Hand Delivery/Courier: You may
hand-carry your comments or have them
hand-carried to the Alcohol and
Tobacco Tax and Trade Bureau, 1310 G
Street NW., Suite 200–E, Washington,
DC 20005.
Your comments must reference Notice
No. 126 and include your name and
E:\FR\FM\27MRP1.SGM
27MRP1
Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules
mailing address. Your comments also
must be made in English, be legible, and
be written in language acceptable for
public disclosure. TTB does not accept
anonymous comments, does not
acknowledge receipt of comments, and
considers 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
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.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
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 confidential or
inappropriate for public disclosure.
Public Disclosure
On the Federal e-rulemaking portal,
Regulations.gov, TTB will post, and the
public may view, copies of this notice
and any electronic or mailed comments
we receive about it. A direct link to the
Regulations.gov docket containing this
notice and the posted comments
received on it is available on the TTB
Web site at https://www.ttb.gov/spirits/
spirits-rulemaking.shtml under Notice
No. 126. You may also reach the docket
containing this notice and its related
comments through the Regulations.gov
search page at https://
www.regulations.gov.
All 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 email addresses.
TTB may omit voluminous attachments
or material that the Bureau considers
unsuitable for posting.
You and other members of the public
may view copies of this notice and any
electronic or mailed comments TTB
receives on it by appointment at the
TTB Information Resource Center, 1310
G Street NW., Washington, DC 20005.
You may also obtain copies at 20 cents
per 8.5 x 11-inch page. Contact the TTB
information specialist at the above
address or by telephone at 202–453–
2270 to schedule an appointment or to
request copies of comments or other
materials.
VerDate Mar<15>2010
15:56 Mar 26, 2012
Jkt 226001
Regulatory Analysis and Notices
Executive Order 12866
It has been 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), TTB certifies that this notice
of proposed rulemaking will not have a
significant economic impact on a
substantial number of small entities.
The propose rule would clarify the
statue of Pisco under the standards of
identity for distilled spirits and, if
promulgated, 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.
Drafting Information
Karen Welch of the Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, drafted this
notice.
List of Subjects in 27 CFR Part 5
Advertising, Customs duties and
inspection, Imports, Labeling, Liquors,
Packaging and containers, Reporting
and recordkeeping requirements, Trade
practices.
Amendment to the Regulations
For the reasons discussed in the
preamble, TTB proposes to amend 27
CFR part 5 as follows:
PART 5—LABELING AND
ADVERTISING OF DISTILLED SPIRITS
1. The authority citation for part 5
continues to read as follows:
Authority: 26 U.S.C. 5301, 7805, 27 U.S.C.
205.
2. Section 5.22 is amended by:
a. In paragraph (d) introductory text,
removing the words ‘‘paragraph (d)(1)
through (8)’’ and adding, in their place,
the words ‘‘paragraphs (d)(1) through
(9)’’;
b. In paragraph (k)(3), by removing the
words ‘‘Cognac,’’ and ‘‘Pisco brandy,’’;
and
c. Adding new paragraph (d)(9) to
read as follows:
§ 5.22
The standards of identity.
*
*
*
*
*
(d) * * *
(9) ‘‘Pisco’’ is grape brandy
manufactured in Peru or Chile in
accordance with the laws and
PO 00000
Frm 00041
Fmt 4702
Sfmt 4702
18149
regulations governing the manufacture
of Pisco of the country of manufacture.
´
(i) ‘‘Pisco Peru’’ (or ‘‘Pisco Peru’’) is
Pisco manufactured in Peru in
accordance with the laws and
regulations of Peru governing the
manufacture of Pisco.
(ii) ‘‘Pisco Chileno’’ or ‘‘Chilean
Pisco’’ is Pisco manufactured in Chile in
accordance with the laws and
regulations of Chile governing the
manufacture of Pisco.
*
*
*
*
*
Signed: February 3, 2012.
John J. Manfreda,
Administrator.
Approved: February 27, 2012.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and
Tariff Policy.
[FR Doc. 2012–7256 Filed 3–26–12; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation
and Enforcement
30 CFR Part 926
[SATS No. MT–033–FOR; Docket ID OSM–
2011–0012]
Montana Regulatory Program
Office of Surface Mining
Reclamation and Enforcement, Interior.
ACTION: Proposed rule; reopening and
extension of public comment period and
opportunity for public hearing on
proposed amendment.
AGENCY:
We are announcing receipt of
Montana’s response to the Office of
Surface Mining Reclamation and
Enforcement’s (OSM) November 22,
2011, letter pertaining to a previously
proposed amendment to the Montana
regulatory program (hereinafter, the
‘‘Montana program’’) under the Surface
Mining Control and Reclamation Act of
1977 (SMCRA or the Act). Montana
proposes changes to the Montana Strip
and Underground Mine Reclamation
Act (MSUMRA) that pertain to coal
prospecting. Montana intends to revise
its program to comply with changes
made in the 2011 Montana Legislature
as a result of the passage of Senate Bill
286.
This document gives the times and
locations that the Montana program and
proposed amendment to that program
are available for your inspection, the
comment period during which you may
submit written comments on the
amendment, and the procedures that we
SUMMARY:
E:\FR\FM\27MRP1.SGM
27MRP1
]]>Agencies
[Federal Register Volume 77, Number 59 (Tuesday, March 27, 2012)]
[Proposed Rules]
[Pages 18146-18149]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-7256]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 5
[Docket No. TTB-2012-0001; Notice No. 126]
RIN 1513-AB91
Standards of Identity for Pisco and Cognac
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: In this document, the Alcohol and Tobacco Tax and Trade Bureau
proposes to amend its regulations setting forth the standards of
identity for distilled spirits to include Pisco as a
[[Page 18147]]
type of brandy that must be manufactured in accordance with the laws
and regulations of either Peru or Chile, as appropriate, governing the
manufacture of those products. This change will remove ``Pisco brandy''
from the list of examples of geographical designations in the distilled
spirits standards of identity. This document also includes a technical
correction to remove ``Cognac'' from the same list of examples. These
changes will provide greater clarity in distilled spirits labeling.
DATES: Comments must be received on or before May 29, 2012.
ADDRESSES: You may send comments on this document to one of the
following addresses:
https://www.regulations.gov (via the online comment form
for this document as posted within Docket No. TTB-2012-0001 at
``Regulations.gov,'' the Federal e-rulemaking portal);
Mail: Director, Regulations and Rulings Division, Alcohol
and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412; or
Hand delivery/courier in lieu of mail: Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street NW., Suite 200-E, Washington, DC
20005.
See the Public Participation section of this document for specific
instructions and requirements for submitting comments, and for
information on how to request a public hearing.
You may view copies of this document, selected supporting
materials, and any comments we receive about this proposal at https://www.regulations.gov within Docket No. TTB-2012-0001. A direct link to
this docket is posted on the TTB Web site at https://www.ttb.gov/spirits/spirits-rulemaking.shtml under Notice No. 126. You also may
view copies of this document, all related supporting materials, and any
comments we receive about this proposal by appointment at the TTB
Information Resource Center, 1310 G Street NW., Washington, DC 20005.
Please call 202-453-2270 to make an appointment.
FOR FURTHER INFORMATION CONTACT: Karen E. Welch, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street NW., Box 12, Washington, DC 20005; telephone 202-453-1039, ext.
046; email ITD@ttb.gov.
SUPPLEMENTARY INFORMATION:
Background
TTB Authority
Section 105(e) of the Federal Alcohol Administration Act (FAA Act),
codified in the United States Code at 27 U.S.C. 205(e), authorizes the
Secretary of the Treasury (Secretary) to prescribe regulations relating
to the packaging, marking, branding, labeling, and size and fill of
containers of alcohol beverages that will prohibit consumer deception
and provide the consumer with adequate information as to the identity
and quality of the product. Section 105(e) of the FAA Act also
generally requires bottlers and importers of alcohol beverages to
obtain certificates of label approval prior to bottling or importing
alcohol beverages for sale in interstate commerce. Regulations
implementing those provisions of section 105(e) as they relate to
distilled spirits are set forth in part 5 of title 27 of the Code of
Federal Regulations (27 CFR part 5). The Alcohol and Tobacco Tax and
Trade Bureau (TTB) administers the FAA Act pursuant to section 111(d)
of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The
Secretary has delegated various authorities through Treasury Department
Order 120-01 (Revised), dated January 21, 2003, to the TTB
Administrator to perform the functions and duties in the administration
and enforcement of this law.
Certificates of Label Approval
TTB's regulations prohibit the release of bottled distilled spirits
from customs custody for consumption unless an approved Certificate of
Label Approval (COLA) covering the product has been deposited with the
appropriate Customs officer at the port of entry. See 27 CFR 5.51. The
TTB regulations also generally prohibit the bottling or removal from a
plant of distilled spirits unless the proprietor possesses a COLA
covering the labels on the bottle. See 27 CFR 5.55.
Classes and Types of Spirits
The TTB labeling regulations require that the class and type of
distilled spirits appear on the product's brand label. See 27 CFR
5.32(a)(2) and 5.35. Those regulations provide that the class and type
must be stated in conformity with Sec. 5.22 of the TTB regulations (27
CFR 5.22) if defined therein. Otherwise, the product must be designated
in accordance with trade and consumer understanding thereof, or, if no
such understanding exists, by a distinctive or fanciful name, and in
either case (with limited exceptions), followed by a truthful and
adequate statement of composition.
Section 5.22 establishes standards of identity for distilled
spirits products and categorizes these products according to various
classes and types. As used in Sec. 5.22, the term ``class'' refers to
a general category of spirits, such as ``whisky'' or ``brandy.''
Currently, there are 12 different classes of distilled spirits
recognized in Sec. 5.22, including whisky, rum, and brandy. The term
``type'' refers to a subcategory within a class of spirits. For
example, ``Cognac'' is a type of brandy, and ``Canadian whisky'' is a
type of whisky.
Brandy and Pisco
Brandy is Class 4 in the standards of identity, where it is defined
in Sec. 5.22(d) as ``an alcoholic distillate from the fermented juice,
mash, or wine of fruit, or from the residue thereof, produced at less
than 190[deg] proof in such manner that the distillate possesses the
taste, aroma, and characteristics generally attributed to the product,
and bottled at not less than 80[deg] proof.'' ``Pisco'' is a term
recognized by both the governments of Peru and Chile as a designation
for a distilled spirits product made from grapes. However, ``Pisco
brandy'' is not currently listed as a type of brandy in Class 4.
Rather, it is provided in Class 11, at Sec. 5.22(k)(3), as an example
of a geographical name that is not a name for a distinctive type of
distilled spirits, and that has not become generic.
International Agreements
Pursuant to the United States-Peru Trade Promotion Agreement, the
United States recognized Pisco Per[uacute] as a distinctive product of
Peru (Article 2.12(2) of the Agreement). Accordingly, the United States
agreed not to permit the sale of any product as Pisco Per[uacute]
unless it has been manufactured in Peru in accordance with the laws and
regulations of Peru governing Pisco.
In addition, pursuant to the United States-Chile Free Trade
Agreement, the United States recognized Pisco Chileno (Chilean Pisco)
as a distinctive product of Chile (Article 3.15(2) of the Agreement).
Accordingly, the United States agreed not to permit the sale of any
product as Pisco Chileno (Chilean Pisco) unless it has been
manufactured in Chile in accordance with the laws and regulations of
Chile governing the manufacture of Pisco.
In like manner, Peru and Chile agreed, respectively, to recognize
Bourbon Whiskey and Tennessee Whiskey (which is defined in both
Agreements as a straight Bourbon Whiskey authorized to be produced only
in the State of Tennessee), as distinctive products of the United
States, and not to permit the sale of any product as Bourbon Whiskey or
Tennessee Whiskey unless it has been manufactured in the United States
in accordance with the laws and
[[Page 18148]]
regulations of the United States governing the manufacture of Bourbon
Whiskey and Tennessee Whiskey. (TTB notes that there are alternative
spellings for the same term--``whisky'' in the TTB regulations in 27
CFR part 5 and ``whiskey'' in the Agreements with Peru and Chile.)
Pisco Production
``The Oxford Companion to Wine'' (Jancis Robinson, ed., Oxford
University Press, 2d ed., 2001, p. 536) reports that Spanish colonists
began producing aguardiente (grape spirits) in both Peru and Chile
since the sixteenth century, in addition to describing the spirits
produced in the area near the town of Pisco in Peru. Further, ``The
Oxford Companion to Wine'' says ``Pisco'' is an aromatic brandy made in
Peru, Chile, and Bolivia, mainly from Moscatel (muscat) grapes.''
According to ``Alexis Lichine's Encyclopedia of Wines and Spirits''
(Alexis Lichine, ed., 5th ed., Alfred A. Knopf, Inc., 1987), ``Pisco
brandy'' is brandy distilled from Muscat wine in Peru, Chile,
Argentina, and Bolivia. Peru and Chile have promulgated standards for
the production of Pisco, which, under both countries' respective
regulations, is distilled from grapes that were grown in delimited
geographical areas.
TTB Regulatory Proposal
After reviewing the standards of identity in 27 CFR part 5, TTB's
COLA database, and the laws and regulations of Peru and Chile, TTB has
determined that amending Sec. 5.22 is appropriate to clarify the
status of Pisco under the standards of identity.
TTB believes that Pisco generally meets the U.S. standard for
brandy and should be classified as a type of brandy. TTB also believes
that evidence suggests that the generally recognized geographical
limits of the Pisco-producing areas do not extend beyond the boundaries
of Chile and Peru. The wine and spirits authorities cited above
indicate that Pisco production is not associated with any areas outside
of South America. COLAs naming ``Pisco'' as the brand name or fanciful
name of a distilled spirits product are almost exclusively for products
from Chile and Peru. TTB could not locate any COLAs naming ``Pisco'' as
the brand name or fanciful name for any products from Argentina, or
from any other country in South America with the exception of Peru,
Chile, and Bolivia. COLAs for products from Bolivia that name ``Pisco''
as the brand name or fanciful name also use the term ``Singani.'' ``The
Oxford Companion to Wine'' defines ``Singani'' as an ``aromatic grape-
based spirit rather like pisco in that it is high in terpenes and made
under a strictly controlled regime, principally from Muscat of
Alexandria grapes'' and a specialty of Bolivia (Robinson, p. 638).
Bolivia maintains standards for Singani production in Bolivia, but does
not have standards for Pisco production.
Therefore, TTB proposes to amend the standard of identity in Sec.
5.22(d) by adding Pisco as a type of brandy that is manufactured in
Peru or Chile in compliance with the laws of the country of production
regulating the manufacture of Pisco. The proposed amendment also
recognizes the phrases ``Pisco Per[uacute]'' (with or without the
diacritic mark, i.e., ``Pisco Per[uacute]'' or ``Pisco Peru''), ``Pisco
Chileno,'' and ``Chilean Pisco,'' as equivalent class and type names of
the product, to reflect the provisions of the trade agreements.
Further, if Pisco is recognized as a type of brandy, persons who
distribute it in the United States will be entitled to label the
product according to its type designation ``Pisco'' without the term
``brandy'' on the label, in the same way that a product labeled with
the type designation ``Cognac'' is not required to also bear the class
designation ``brandy.''
TTB notes that the Peruvian standard allows products designated as
Pisco to have an alcohol content ranging from 38 to 48 percent alcohol
by volume, and the Chilean standard allows products designated as Pisco
to have an alcohol content as low as 30 percent alcohol by volume.
However, since the standard proposed in this document would identify
Pisco as a type of brandy, and the U.S. standard requires that brandy
must be bottled at not less than 40 percent alcohol by volume, any
Pisco imported into the United States would have to conform to this
minimum bottling proof requirement. A product that is bottled at below
40 percent alcohol by volume would fall outside this class and type
designation. Depending on the way that such a product is manufactured,
it could be labeled as a ``diluted Pisco'' or as a distilled spirits
specialty product bearing a statement of composition.
Finally, TTB believes that it is appropriate to remove both ``Pisco
brandy'' and ``Cognac'' from Sec. 5.22(k)(3), where they are listed as
examples of geographical names that are not names for distinctive types
of distilled spirits, and that have not become generic. Pisco will
appear in new Sec. 5.22(d)(9), where it will be a type of brandy
defined as grape brandy manufactured in Peru or Chile in accordance
with the laws and regulations governing the manufacture of Pisco of the
country of manufacture.
Cognac currently appears in Sec. 5.22(d)(2), where it is a type of
brandy defined as ``grape brandy distilled in the Cognac region of
France, which is entitled to be so designated by the laws and
regulations of the French Government.'' The inclusion of ``Cognac'' in
the list of examples of geographical names that are not names for
distinctive types of distilled spirits, and that have not become
generic, in Sec. 5.22(k)(3) is duplicative and confusing. Accordingly,
TTB proposes to remove the reference to Cognac in Sec. 5.22(k)(3) as a
technical correction to the regulations.
Effect on Currently Approved Labels
If finalized, this change to the regulations would revoke by
operation of regulation any COLAs that specify ``Pisco'' as the class
and type or brand name or fanciful name of distilled spirits products
that are not products of Peru or Chile. TTB has searched its COLA
database, and believes that this rulemaking will affect only a small
number of labels.
Public Participation
Comments Invited
We invite comments from interested members of the public on this
proposed rulemaking.
Submitting Comments
Please submit your comments by the closing date shown above in this
notice. You may submit comments in one of the following three ways:
Federal e-Rulemaking Portal: You may send comments via the
online comment form associated with this notice in Docket No. TTB-2012-
0001 on ``Regulations.gov,'' the Federal e-rulemaking portal, at https://www.regulations.gov. A direct link to that docket is available under
Notice No. 126 on the TTB Web site at https://www.ttb.gov/spirits/spirits-rulemaking.shtml. Supplemental files may be attached to
comments submitted via Regulations.gov. For information on how to use
Regulations.gov, click on the site's Help tabs.
U.S. Mail: You may send comments via postal mail to the
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and
Trade Bureau, P.O. Box 14412, Washington, DC 20044-4412.
Hand Delivery/Courier: You may hand-carry your comments or
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau,
1310 G Street NW., Suite 200-E, Washington, DC 20005.
Your comments must reference Notice No. 126 and include your name
and
[[Page 18149]]
mailing address. Your comments also must be made in English, be
legible, and be written in language acceptable for public disclosure.
TTB does not accept anonymous comments, does not acknowledge receipt of
comments, and considers 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 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 confidential or inappropriate for public
disclosure.
Public Disclosure
On the Federal e-rulemaking portal, Regulations.gov, TTB will post,
and the public may view, copies of this notice and any electronic or
mailed comments we receive about it. A direct link to the
Regulations.gov docket containing this notice and the posted comments
received on it is available on the TTB Web site at https://www.ttb.gov/spirits/spirits-rulemaking.shtml under Notice No. 126. You may also
reach the docket containing this notice and its related comments
through the Regulations.gov search page at https://www.regulations.gov.
All 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 email addresses. TTB may omit voluminous
attachments or material that the Bureau considers unsuitable for
posting.
You and other members of the public may view copies of this notice
and any electronic or mailed comments TTB receives on it by appointment
at the TTB Information Resource Center, 1310 G Street NW., Washington,
DC 20005. You may also obtain copies at 20 cents per 8.5 x 11-inch
page. Contact the TTB information specialist at the above address or by
telephone at 202-453-2270 to schedule an appointment or to request
copies of comments or other materials.
Regulatory Analysis and Notices
Executive Order 12866
It has been 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), TTB certifies that this notice of proposed
rulemaking will not have a significant economic impact on a substantial
number of small entities. The propose rule would clarify the statue of
Pisco under the standards of identity for distilled spirits and, if
promulgated, 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.
Drafting Information
Karen Welch of the Regulations and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, drafted this notice.
List of Subjects in 27 CFR Part 5
Advertising, Customs duties and inspection, Imports, Labeling,
Liquors, Packaging and containers, Reporting and recordkeeping
requirements, Trade practices.
Amendment to the Regulations
For the reasons discussed in the preamble, TTB proposes to amend 27
CFR part 5 as follows:
PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS
1. The authority citation for part 5 continues to read as follows:
Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205.
2. Section 5.22 is amended by:
a. In paragraph (d) introductory text, removing the words
``paragraph (d)(1) through (8)'' and adding, in their place, the words
``paragraphs (d)(1) through (9)'';
b. In paragraph (k)(3), by removing the words ``Cognac,'' and
``Pisco brandy,''; and
c. Adding new paragraph (d)(9) to read as follows:
Sec. 5.22 The standards of identity.
* * * * *
(d) * * *
(9) ``Pisco'' is grape brandy manufactured in Peru or Chile in
accordance with the laws and regulations governing the manufacture of
Pisco of the country of manufacture.
(i) ``Pisco Per[uacute]'' (or ``Pisco Peru'') is Pisco manufactured
in Peru in accordance with the laws and regulations of Peru governing
the manufacture of Pisco.
(ii) ``Pisco Chileno'' or ``Chilean Pisco'' is Pisco manufactured
in Chile in accordance with the laws and regulations of Chile governing
the manufacture of Pisco.
* * * * *
Signed: February 3, 2012.
John J. Manfreda,
Administrator.
Approved: February 27, 2012.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and Tariff Policy.
[FR Doc. 2012-7256 Filed 3-26-12; 8:45 am]
BILLING CODE 4810-31-P
