Proposed Amendment to the Standards of Identity for Distilled Spirits, 25382-25384 [2012-10332]

Download as PDF 25382 Federal Register / Vol. 77, No. 83 / Monday, April 30, 2012 / Proposed Rules Information Resource Center, 1310 G Street NW., Washington, DC 20005. Please call 202–453–2270 to make an appointment. FOR FURTHER INFORMATION CONTACT: Christopher M. Thiemann, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 200E, Washington, DC 20005; telephone 202–453–1039, Ext. 138. SUPPLEMENTARY INFORMATION: DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 5 [Docket No. TTB–2012–0002; Notice No. 127] RIN 1513–AB33 Proposed Amendment to the Standards of Identity for Distilled Spirits Background Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notice of proposed rulemaking. AGENCY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to amend the regulations setting forth the standards of identity for distilled spirits to include ‘‘Cachaca’’ as a type of rum ¸ and as a distinctive product of Brazil. This proposal follows requests received from the Government of Brazil and subsequent discussions with the Office of the United States Trade Representative. TTB invites comments on this proposed amendment to the TTB regulations. DATES: Comments must be received on or before June 29, 2012. ADDRESSES: You may send comments on this notice to one of the following addresses: • https://www.regulations.gov: To submit comments via the Internet, use the comment form for this notice as posted within Docket No. TTB–2012– 0002 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. • 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 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, selected supporting materials, and any comments TTB receives about this proposal within Docket No. TTB–2012– 0002 at https://www.regulations.gov. A link to this Regulations.gov docket is posted on the TTB Web site at https:// www.ttb.gov/regulations_laws/all_ rulemaking.shtml under Notice No. 127. You also may view copies of this notice, all supporting materials, and any comments TTB receives about this proposal by appointment at the TTB srobinson on DSK4SPTVN1PROD with PROPOSALS SUMMARY: VerDate Mar<15>2010 16:34 Apr 27, 2012 Jkt 226001 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 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. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act pursuant to section 1111(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. Regulations implementing the 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). 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 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 PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 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. Classification of Cachaca ¸ ‘‘Cachaca’’ is a term recognized by the ¸ Brazilian Government as a designation for a Brazilian distilled spirits product made from sugar cane. Cachaca ¸ products are generally classified as rums under the terms of TTB’s current labeling regulations. The standard of identity for rum is set forth in § 5.22(f) as follows: Class 6; rum. ‘‘Rum’’ is an alcoholic distillate from the fermented juice of sugar cane, sugar cane syrup, sugar cane molasses, or other sugar cane by-products, produced at less than 190° proof in such manner that the distillate possesses the taste, aroma and characteristics generally attributed to rum, and bottled at not less than 80° proof; and also includes mixtures solely of such distillates. The above standard does not currently provide for any subcategories or ‘‘types’’ of rum. In some instances, products identified by importers as Cachaca have been ¸ manufactured using a small quantity of corn or corn syrup in the fermentation process. Since these products do not meet the standard for rum as described at § 5.22(f), TTB has required the labeling of these products as distilled spirit specialty products in accordance with § 5.35. In some instances, these products have been labeled with the fanciful name ‘‘Cachaca,’’ followed by a ¸ truthful and adequate statement of composition. 2001 Brazilian Petition By letter dated April 30, 2001, the Embassy of the Government of Brazil submitted a petition to the Bureau of Alcohol, Tobacco and Firearms (ATF) in which it requested that ATF amend its regulations to recognize the Brazilian distilled spirits product known as ‘‘Cachaca’’ as a distinctive product of ¸ Brazil. The Brazilian Embassy stated that Cachaca is known worldwide as a ¸ Brazilian product and that Brazil has been a supplier of Cachaca to the United ¸ States for many decades. After preliminary discussions with the Brazilian Embassy, no further action was taken with regard to the request. 2006 Brazilian Petition In a petition dated March 6, 2006, the Brazilian Embassy requested that TTB amend its regulations to provide E:\FR\FM\30APP1.SGM 30APP1 Federal Register / Vol. 77, No. 83 / Monday, April 30, 2012 / Proposed Rules recognition of Cachaca as a distinctive ¸ product of Brazil. Among other things, the Embassy noted Brazilian Decree No. 4851, of October 2, 2003, which defines ‘‘Cachaca’’ as ‘‘the typical and exclusive ¸ designation of the sugar cane aguardente produced in Brazil, with an alcohol content of 38 to 48 percent by volume at 20 degrees Celsius, obtained from the distillation of the fermented must of sugar cane with specific sensory characteristics, to which up to six grams of sugar per liter may be added, expressed in terms of sucrose.’’ Brazil requested that TTB initiate regulatory action to recognize Cachaca ¸ as a typically and exclusively Brazilian beverage. In addition, following discussions between officials of Brazil and the Office of the United States Trade Representative (USTR), and after consultations between USTR, and TTB, the United States Trade Representative and Brazil’s Minister of Development, Industry, and Foreign Trade signed an agreement on April 9, 2012, setting out a procedure that could lead each party to recognize certain distinctive distilled spirits produced in the other party’s territory, including Cachaca. The ¸ agreement provides in part that if, following the publication of a notice of proposed rulemaking, the United States publishes a final rule that provides, among other things, that Cachaca is a ¸ type of rum that is a distinctive product of Brazil, then Brazil, within 30 days thereafter, will recognize Bourbon Whiskey and Tennessee Whiskey as distinctive products of the United States. In addition to the petition from the Brazilian Government and advice from USTR, TTB has received a number of essentially identical letters from private parties supporting the recognition of Cachaca as a distinctive type of spirit. ¸ srobinson on DSK4SPTVN1PROD with PROPOSALS TTB Regulatory Proposal TTB considers that it is appropriate to recognize Cachaca as a distinctive ¸ product of Brazil. Therefore, this notice proposes to recognize Cachaca as a type ¸ within the class designation rum that would be recognized as a distinctive product of Brazil, manufactured in Brazil in compliance with the laws of Brazil regulating the manufacture of Cachaca for consumption in that ¸ country. Thus, the product may simply be labeled as ‘‘Cachaca’’ without the ¸ term ‘‘rum’’ on the label, just as a product labeled with the type designation ‘‘Cognac’’ is not required to also bear the class designation ‘‘brandy.’’ VerDate Mar<15>2010 16:34 Apr 27, 2012 Jkt 226001 25383 Public Participation comment form associated with this notice in Docket No. TTB–2012–0002 on ‘‘Regulations.gov,’’ the Federal e-rulemaking portal, at https://www. regulations.gov. A link to this Regulations.gov docket is available under Notice No. 127 on the TTB Web site at https://www.ttb.gov/regulations_ laws/all_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 or FAQ 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. 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 include the entity’s name in the ‘‘Organization’’ blank of the comment form. If you comment via postal 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. Comments Invited Confidentiality TTB invites comments from interested members of the public on this proposed rule, including on whether the proposed amendment would have an adverse impact on owners of U.S. trademarks and on the extent to which distilled spirits labeled as ‘‘Cachaca’’ are ¸ produced outside Brazil. Although information currently before TTB suggests that all distilled spirits currently sold in the United States with ‘‘Cachaca’’ on the label are produced in ¸ Brazil, comments on the extent of production outside of Brazil will assist TTB in determining whether Cachaca ¸ should be recognized as a distinctive product of Brazil. 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. The proposed type description will not include as ‘‘Cachaca’’ any spirits ¸ that use corn or corn syrup in the fermentation process. TTB has confirmed with the Brazilian Government that the Brazilian standard for Cachaca would not allow for the use ¸ of corn or corn syrup in the fermentation process. As such, under the terms of the proposed text set forth in this document, distilled spirits that use any corn or corn syrup in the fermentation process would not meet the proposed standard for ‘‘Cachaca’’ ¸ because they are not manufactured in compliance with the laws of Brazil regulating the manufacture of Cachaca ¸ for consumption in that country. Such products would not be entitled to be labeled as Cachaca. ¸ The Brazilian standard allows products designated as Cachaca to have ¸ an alcohol content ranging from 38 to 48 percent alcohol by volume. However, since the standard proposed in this document would identify Cachaca as a ¸ type of rum, and the United States standard requires that rum must be bottled at not less than 40 percent alcohol by volume, or 80 degrees proof, any ‘‘Cachaca’’ 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 Cachaca’’ or a ¸ distilled spirits specialty product bearing a statement of composition. Submitting Comments You may submit comments on this notice by using one of the following three methods: • Federal e-Rulemaking Portal: You may send comments via the online PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 Public Disclosure On the Federal e-rulemaking portal, Regulations.gov, TTB will post, and you may view, copies of this notice, selected supporting materials, and any electronic or mailed comments we receive about this proposal. A link to the Regulations.gov docket containing this notice, any posted supporting materials, and the comments received on this proposal is available on the TTB Web site at https://www.ttb.gov/regulations_ laws/all_rulemaking.shtml under Notice No. 127. You may also reach the relevant docket through the Regulatons.gov search page at https:// www.regulations.gov. For information E:\FR\FM\30APP1.SGM 30APP1 25384 Federal Register / Vol. 77, No. 83 / Monday, April 30, 2012 / Proposed Rules on how to use Regulations.gov, click on the site’s Help or FAQ tabs. 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. We may omit voluminous attachments or material that we consider unsuitable for posting. You also may view copies of this notice, the related petitions, any other supporting materials, 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 20005. You may also obtain copies at 20 cents per 8.5- × 11-inch page. Contact our 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 Flexibility Act We certify that this proposed amendment, if adopted, would not have a significant economic impact on a substantial number of small entities. The proposed amendment only amends the standards of identity for rum at 27 CFR 5.22(f) and does not impose any new reporting, recordkeeping, or other administrative requirement. Therefore, no regulatory flexibility analysis is required. Executive Order 12866 It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. Drafting Information Christopher M. Thiemann of the Regulations and Rulings Division prepared this notice. srobinson on DSK4SPTVN1PROD with PROPOSALS The Proposed Amendment 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 revising paragraph (f) to read as follows: 16:34 Apr 27, 2012 Jkt 226001 The standards of identity. * * * * * (f) Class 6; rum. ‘‘Rum’’ is an alcoholic distillate from the fermented juice of sugar cane, sugar cane syrup, sugar cane molasses, or other sugar cane by-products, produced at less than 190° proof in such manner that the distillate possesses the taste, aroma, and characteristics generally attributed to rum, and bottled at not less than 80° proof; and also includes mixtures solely of such distillates. (1) ‘‘Cachaca’’ is a type of rum that is ¸ a distinctive product of Brazil, manufactured in Brazil in compliance with the laws of Brazil regulating the manufacture of Cachaca for ¸ consumption in that country. The word ‘‘Cachaca’’ may be spelled with or ¸ without the diacritic mark (i.e., ‘‘Cachaca’’ or ‘‘Cachaca’’). ¸ (2) [Reserved] * * * * * Signed: April 9, 2012. John J. Manfreda, Administrator. Approved: April 11, 2012. Timothy E. Skud, Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy). [FR Doc. 2012–10332 Filed 4–27–12; 8:45 am] BILLING CODE 4810–31–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R09–OAR–2012–0267; FRL–9665–6] Revisions to the California State Implementation Plan, San Joaquin Valley Unified Air Pollution Control District Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: List of Subjects in 27 CFR Part 5 Advertising, Consumer protection, Customs duties and inspection, Imports, Labeling, Liquors, and Packaging and containers. VerDate Mar<15>2010 § 5.22 EPA is proposing to approve revisions to the San Joaquin Valley Unified Air Pollution Control District (SJVUAPCD) portion of the California State Implementation Plan (SIP). These revisions concern volatile organic compound (VOC) emissions from wine storage. We are approving a local rule that regulates these emission sources under the Clean Air Act as amended in 1990 (CAA or the Act). We are taking comments on this proposal and plan to follow with a final action. DATES: Any comments must arrive by May 30, 2012. ADDRESSES: Submit comments, identified by docket number [DOCKET SUMMARY: PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 NUMBER], by one of the following methods: 1. Federal eRulemaking Portal: www.regulations.gov. Follow the on-line instructions. 2. Email: steckel.andrew@epa.gov. 3. Mail or deliver: Andrew Steckel (Air-4), U.S. Environmental Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 94105–3901. Instructions: All comments will be included in the public docket without change and may be made available online at www.regulations.gov, including any personal information provided, unless the comment includes Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Information that you consider CBI or otherwise protected should be clearly identified as such and should not be submitted through www.regulations.gov or email. www.regulations.gov is an ‘‘anonymous access’’ system, and EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send email directly to EPA, your email address will be automatically captured and included as part of the public comment. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Docket: Generally, documents in the docket for this action are available electronically at www.regulations.gov and in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While all documents in the docket are listed at www.regulations.gov, some information may be publicly available only at the hard copy location (e.g., copyrighted material, large maps), and some may not be publicly available in either location (e.g., CBI). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Lily Wong, EPA Region IX, (415) 947–4114, wong.lily@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document, ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to EPA. Table of Contents I. The State’s Submittal A. What rule did the State submit? B. Are there other versions of this rule? C. What is the purpose of the submitted rule revision? II. EPA’s Evaluation and Action A. How is EPA evaluating the rule? B. Does the rule meet the evaluation criteria? E:\FR\FM\30APP1.SGM 30APP1

Agencies

[Federal Register Volume 77, Number 83 (Monday, April 30, 2012)]
[Proposed Rules]
[Pages 25382-25384]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10332]



[[Page 25382]]

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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 5

[Docket No. TTB-2012-0002; Notice No. 127]
RIN 1513-AB33


Proposed Amendment to the Standards of Identity for Distilled 
Spirits

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

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to 
amend the regulations setting forth the standards of identity for 
distilled spirits to include ``Cacha[ccedil]a'' as a type of rum and as 
a distinctive product of Brazil. This proposal follows requests 
received from the Government of Brazil and subsequent discussions with 
the Office of the United States Trade Representative. TTB invites 
comments on this proposed amendment to the TTB regulations.

DATES: Comments must be received on or before June 29, 2012.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
     https://www.regulations.gov: To submit comments via the 
Internet, use the comment form for this notice as posted within Docket 
No. TTB-2012-0002 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.
     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 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, selected supporting materials, 
and any comments TTB receives about this proposal within Docket No. 
TTB-2012-0002 at https://www.regulations.gov. A link to this 
Regulations.gov docket is posted on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 
127. You also may view copies of this notice, all supporting materials, 
and any comments TTB receives 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: Christopher M. Thiemann, Regulations 
and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Suite 200E, Washington, DC 20005; telephone 202-453-1039, 
Ext. 138.

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 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. The Alcohol and Tobacco Tax and Trade Bureau (TTB) 
administers the FAA Act pursuant to section 1111(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. Regulations implementing the 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).

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.

Classification of Cacha[ccedil]a

    ``Cacha[ccedil]a'' is a term recognized by the Brazilian Government 
as a designation for a Brazilian distilled spirits product made from 
sugar cane. Cacha[ccedil]a products are generally classified as rums 
under the terms of TTB's current labeling regulations. The standard of 
identity for rum is set forth in Sec.  5.22(f) as follows:

    Class 6; rum. ``Rum'' is an alcoholic distillate from the 
fermented juice of sugar cane, sugar cane syrup, sugar cane 
molasses, or other sugar cane by-products, produced at less than 
190[deg] proof in such manner that the distillate possesses the 
taste, aroma and characteristics generally attributed to rum, and 
bottled at not less than 80[deg] proof; and also includes mixtures 
solely of such distillates.

The above standard does not currently provide for any subcategories or 
``types'' of rum.
    In some instances, products identified by importers as 
Cacha[ccedil]a have been manufactured using a small quantity of corn or 
corn syrup in the fermentation process. Since these products do not 
meet the standard for rum as described at Sec.  5.22(f), TTB has 
required the labeling of these products as distilled spirit specialty 
products in accordance with Sec.  5.35. In some instances, these 
products have been labeled with the fanciful name ``Cacha[ccedil]a,'' 
followed by a truthful and adequate statement of composition.

2001 Brazilian Petition

    By letter dated April 30, 2001, the Embassy of the Government of 
Brazil submitted a petition to the Bureau of Alcohol, Tobacco and 
Firearms (ATF) in which it requested that ATF amend its regulations to 
recognize the Brazilian distilled spirits product known as 
``Cacha[ccedil]a'' as a distinctive product of Brazil.
    The Brazilian Embassy stated that Cacha[ccedil]a is known worldwide 
as a Brazilian product and that Brazil has been a supplier of 
Cacha[ccedil]a to the United States for many decades. After preliminary 
discussions with the Brazilian Embassy, no further action was taken 
with regard to the request.

2006 Brazilian Petition

    In a petition dated March 6, 2006, the Brazilian Embassy requested 
that TTB amend its regulations to provide

[[Page 25383]]

recognition of Cacha[ccedil]a as a distinctive product of Brazil.
    Among other things, the Embassy noted Brazilian Decree No. 4851, of 
October 2, 2003, which defines ``Cacha[ccedil]a'' as ``the typical and 
exclusive designation of the sugar cane aguardente produced in Brazil, 
with an alcohol content of 38 to 48 percent by volume at 20 degrees 
Celsius, obtained from the distillation of the fermented must of sugar 
cane with specific sensory characteristics, to which up to six grams of 
sugar per liter may be added, expressed in terms of sucrose.''
    Brazil requested that TTB initiate regulatory action to recognize 
Cacha[ccedil]a as a typically and exclusively Brazilian beverage.
    In addition, following discussions between officials of Brazil and 
the Office of the United States Trade Representative (USTR), and after 
consultations between USTR, and TTB, the United States Trade 
Representative and Brazil's Minister of Development, Industry, and 
Foreign Trade signed an agreement on April 9, 2012, setting out a 
procedure that could lead each party to recognize certain distinctive 
distilled spirits produced in the other party's territory, including 
Cacha[ccedil]a. The agreement provides in part that if, following the 
publication of a notice of proposed rulemaking, the United States 
publishes a final rule that provides, among other things, that 
Cacha[ccedil]a is a type of rum that is a distinctive product of 
Brazil, then Brazil, within 30 days thereafter, will recognize Bourbon 
Whiskey and Tennessee Whiskey as distinctive products of the United 
States.
    In addition to the petition from the Brazilian Government and 
advice from USTR, TTB has received a number of essentially identical 
letters from private parties supporting the recognition of 
Cacha[ccedil]a as a distinctive type of spirit.

TTB Regulatory Proposal

    TTB considers that it is appropriate to recognize Cacha[ccedil]a as 
a distinctive product of Brazil. Therefore, this notice proposes to 
recognize Cacha[ccedil]a as a type within the class designation rum 
that would be recognized as a distinctive product of Brazil, 
manufactured in Brazil in compliance with the laws of Brazil regulating 
the manufacture of Cacha[ccedil]a for consumption in that country. 
Thus, the product may simply be labeled as ``Cacha[ccedil]a'' without 
the term ``rum'' on the label, just as a product labeled with the type 
designation ``Cognac'' is not required to also bear the class 
designation ``brandy.''
    The proposed type description will not include as 
``Cacha[ccedil]a'' any spirits that use corn or corn syrup in the 
fermentation process. TTB has confirmed with the Brazilian Government 
that the Brazilian standard for Cacha[ccedil]a would not allow for the 
use of corn or corn syrup in the fermentation process. As such, under 
the terms of the proposed text set forth in this document, distilled 
spirits that use any corn or corn syrup in the fermentation process 
would not meet the proposed standard for ``Cacha[ccedil]a'' because 
they are not manufactured in compliance with the laws of Brazil 
regulating the manufacture of Cacha[ccedil]a for consumption in that 
country. Such products would not be entitled to be labeled as 
Cacha[ccedil]a.
    The Brazilian standard allows products designated as Cacha[ccedil]a 
to have an alcohol content ranging from 38 to 48 percent alcohol by 
volume. However, since the standard proposed in this document would 
identify Cacha[ccedil]a as a type of rum, and the United States 
standard requires that rum must be bottled at not less than 40 percent 
alcohol by volume, or 80 degrees proof, any ``Cacha[ccedil]a'' 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 Cacha[ccedil]a'' or a distilled spirits 
specialty product bearing a statement of composition.

Public Participation

Comments Invited

    TTB invites comments from interested members of the public on this 
proposed rule, including on whether the proposed amendment would have 
an adverse impact on owners of U.S. trademarks and on the extent to 
which distilled spirits labeled as ``Cacha[ccedil]a'' are produced 
outside Brazil. Although information currently before TTB suggests that 
all distilled spirits currently sold in the United States with 
``Cacha[ccedil]a'' on the label are produced in Brazil, comments on the 
extent of production outside of Brazil will assist TTB in determining 
whether Cacha[ccedil]a should be recognized as a distinctive product of 
Brazil.

Submitting Comments

    You may submit comments on this notice by using one of the 
following three methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form associated with this notice in Docket No. TTB-2012-
0002 on ``Regulations.gov,'' the Federal e-rulemaking portal, at https://www.regulations.gov. A link to this Regulations.gov docket is 
available under Notice No. 127 on the TTB Web site at https://www.ttb.gov/regulations_laws/all_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 or 
FAQ 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.
    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 include the entity's name in the ``Organization'' blank of the 
comment form. If you comment via postal 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, Regulations.gov, TTB will post, 
and you may view, copies of this notice, selected supporting materials, 
and any electronic or mailed comments we receive about this proposal. A 
link to the Regulations.gov docket containing this notice, any posted 
supporting materials, and the comments received on this proposal is 
available on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 127. You may also reach the 
relevant docket through the Regulatons.gov search page at https://www.regulations.gov. For information

[[Page 25384]]

on how to use Regulations.gov, click on the site's Help or FAQ tabs.
    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. We may omit voluminous 
attachments or material that we consider unsuitable for posting.
    You also may view copies of this notice, the related petitions, any 
other supporting materials, 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 20005. 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 202-453-
2270 to schedule an appointment or to request copies of comments or 
other materials.

Regulatory Flexibility Act

    We certify that this proposed amendment, if adopted, would not have 
a significant economic impact on a substantial number of small 
entities. The proposed amendment only amends the standards of identity 
for rum at 27 CFR 5.22(f) and does not impose any new reporting, 
recordkeeping, or other administrative requirement. Therefore, no 
regulatory flexibility analysis is required.

Executive Order 12866

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required.

Drafting Information

    Christopher M. Thiemann of the Regulations and Rulings Division 
prepared this notice.

List of Subjects in 27 CFR Part 5

    Advertising, Consumer protection, Customs duties and inspection, 
Imports, Labeling, Liquors, and Packaging and containers.

The Proposed Amendment

    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 revising paragraph (f) to read as 
follows:


Sec.  5.22  The standards of identity.

* * * * *
    (f) Class 6; rum. ``Rum'' is an alcoholic distillate from the 
fermented juice of sugar cane, sugar cane syrup, sugar cane molasses, 
or other sugar cane by-products, produced at less than 190[deg] proof 
in such manner that the distillate possesses the taste, aroma, and 
characteristics generally attributed to rum, and bottled at not less 
than 80[deg] proof; and also includes mixtures solely of such 
distillates.
    (1) ``Cacha[ccedil]a'' is a type of rum that is a distinctive 
product of Brazil, manufactured in Brazil in compliance with the laws 
of Brazil regulating the manufacture of Cacha[ccedil]a for consumption 
in that country. The word ``Cacha[ccedil]a'' may be spelled with or 
without the diacritic mark (i.e., ``Cacha[ccedil]a'' or ``Cachaca'').
    (2) [Reserved]
* * * * *

    Signed: April 9, 2012.
John J. Manfreda,
Administrator.
    Approved: April 11, 2012.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 2012-10332 Filed 4-27-12; 8:45 am]
BILLING CODE 4810-31-P
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