Modernization of the Labeling and Advertising Regulations for Wine, Distilled Spirits, and Malt Beverages, 60562-60693 [2018-24446]
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Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Parts 4, 5, 7, 14, and 19
[Docket No. TTB–2018–0007; Notice No.
176]
RIN 1513–AB54
Modernization of the Labeling and
Advertising Regulations for Wine,
Distilled Spirits, and Malt Beverages
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
The Alcohol and Tobacco Tax
and Trade Bureau (TTB) is proposing to
amend its regulations governing the
labeling and advertising of wine,
distilled spirits, and malt beverages.
TTB proposes to reorganize and recodify
these regulations in order to simplify
and clarify regulatory standards,
incorporate guidance documents and
current policy into the regulations, and
reduce the regulatory burden on
industry members where possible.
DATES: TTB must receive comments on
this proposal on or before March 26,
2019.
ADDRESSES: Please send your comments
on this document to one of the
following addresses:
• Internet: https://
www.regulations.gov (via the online
comment form for this document as
posted within Docket No. TTB–2018–
0007 at ‘‘Regulations.gov,’’ the Federal
e-rulemaking portal);
• U.S. Mail: Director, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street
NW, Box 12, Washington, DC 20005; or
• Hand delivery/courier in lieu of
mail: Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street NW, Suite
400, 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.
FOR FURTHER INFORMATION CONTACT:
Christopher M. Thiemann or Kara T.
Fontaine, Regulations and Rulings
Division, Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street NW, Box
12, Washington, DC 20005; telephone
202–453–2265.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents
I. Background
A. TTB’s Statutory Authority
B. Current TTB Alcohol Beverage Labeling
and Advertising Regulations
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C. The Certificate of Label Approval
(COLA) Process
D. Modernization of the Alcohol Beverage
Labeling and Advertising Regulations
E. Plain Language Principles
F. Scope of this Rulemaking
II. Proposed Revisions
A. General Reorganization of the Parts
B. Proposed Changes That Apply to Parts
4, 5 and 7
C. Proposed Changes Specific to 27 CFR
Part 4 (Wine)
D. Proposed Changes Specific to 27 CFR
Part 5 (Distilled Spirits)
E. Proposed Changes Specific to 27 CFR
Part 7 (Malt Beverages)
F. Proposed 27 CFR Part 14 (Advertising)
G. Impact on Public Guidance Documents
H. Impact on Current Labels
III. Derivation Tables for Proposed Parts 4, 5,
7, and 14
IV. Public Participation
A. Comments Sought
B. Submitting Comments
C. Confidentiality
D. Public Disclosure
V. Regulatory Analyses and Notices
A. Regulatory Flexibility Act
B. Executive Order 12866
C. Paperwork Reduction Act
VI. Drafting Information
List of Subjects
Authority and Issuance
I. Background
A. TTB’s Statutory Authority
Sections 105(e) and 105(f) of the
Federal Alcohol Administration Act
(FAA Act), 27 U.S.C. 205(e) and 205(f),
set forth standards for the regulation of
the labeling and advertising of wine,
distilled spirits, and malt beverages. The
FAA Act was enacted in 1935 and also
contains provisions regarding the
requirements for basic permits that
allow people to engage in business as
producers, importers, and wholesalers,
and the regulation of unfair trade
practices.
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 of the Treasury (the Secretary)
has delegated various authorities to
administer and enforce this law to the
TTB Administrator through Treasury
Department Order 120–01 (dated
December 10, 2013, superseding
Treasury Order 120–01 (Revised),
‘‘Alcohol and Tobacco Tax and Trade
Bureau,’’ dated January 24, 2003).
1. History of the FAA Act
After the repeal of Prohibition by the
enactment of the Twenty-First
Amendment in 1933, the alcohol
beverage industry was subject to Federal
regulation under the codes of fair
competition authorized by the National
Industrial Recovery Act. By Executive
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order, the President created the Federal
Alcohol Control Administration to
administer the codes of fair competition
for the alcohol beverage industry. In
1935, the Supreme Court struck down
the provisions of the National Industrial
Recovery Act as unconstitutional. See
Schechter Poultry Corp. v. United
States, 295 U.S. 495 (1935). After that
decision, in order to provide for the
orderly regulation of the alcohol
beverage industry, Congress enacted the
FAA Act in August of 1935.
The legislative history of the FAA Act
provides some insight concerning the
general purpose of the FAA Act’s
labeling provisions, which authorize
TTB to regulate the labeling of alcohol
beverage products:
* * * the provisions of this bill show that
the purpose was to carry that regulation into
certain particular fields in which control of
interstate commerce in liquors was
paramount and necessary. The purpose was
to provide such regulations, not laid down in
statute, so as to be inflexible, but laid down
under the guidance of Congress, under
general principles, by a body which could
change them as changes were found
necessary. Those regulations were intended
to insure that the purchaser should get what
he thought he was getting, that
representations both in labels and in
advertising should be honest and straightforward and truthful. They should not be
confined, as the pure-food regulations have
been confined, to prohibitions of falsity, but
they should also provide for the information
of the consumer, that he should be told what
was in the bottle, and all the important
factors which were of interest to him about
what was in the bottle. (See Hearings on H.R.
8539 before the Committee on Ways and
Means, House of Representatives, 74th Cong.,
1st Sess. 10 (1935).)
2. Labeling and Advertising Provisions
of the FAA Act
Section 105(e) of the FAA Act,
codified in the United States Code at 27
U.S.C. 205(e), sets forth requirements for
labeling of wine (which is defined in the
FAA Act to cover only wines that
contain at least 7 percent alcohol by
volume), distilled spirits, and malt
beverages (collectively referred to as
‘‘alcohol beverages’’ throughout this
document). This section of the FAA Act
authorizes the Secretary to issue
regulations to prevent deception of the
consumer, to provide the consumer with
‘‘adequate information’’ as to the
identity and quality of the product, to
prohibit false or misleading statements,
and to provide information as to the
alcohol content of the product.
3. FAA Act Prohibition of Sale or
Shipment of Mislabeled Products
Section 105(e) of the FAA Act (27
U.S.C. 205(e)) also prohibits the sale or
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shipment in interstate or foreign
commerce of wine, distilled spirits, or
malt beverages that are not bottled,
packaged, and labeled in accordance
with regulations issued by the Secretary.
Violations of section 105(e) are
misdemeanors that are punishable by a
fine. See 27 U.S.C. 207.
The prohibition in section 105(e)
applies to any person engaged in
business as a distiller, brewer, rectifier,
blender, or other producer, or as an
importer or wholesaler of wine, distilled
spirits or malt beverages, or as a bottler,
or warehouseman and bottler, of
distilled spirits. The law makes it
unlawful for such persons, directly or
indirectly or through an affiliate, to sell
or ship, or deliver for sale or shipment,
or otherwise introduce, in interstate or
foreign commerce, or to receive therein,
or to remove from customs custody for
consumption, any wine, distilled spirits,
or malt beverages in bottles, unless the
products are bottled, packaged, and
labeled in conformity with the
regulations.
4. Authorization of Labeling Regulations
in the FAA Act
The FAA Act provides specific
guidance as to what the labeling
regulations should cover, but builds in
a ‘‘zone of discretion’’ for TTB to
exercise in implementing these
regulations. See Center for Science in
the Public Interest v. Department of the
Treasury, 797 F.2d 995 (D.C. Cir. 1986).
The following provides a summary of
the statutory provisions with regard to
the labeling of wine, distilled spirits,
and malt beverages under section 105(e)
of the FAA Act (27 U.S.C. 205(e)).
a. Prohibition of consumer deception.
Section 105(e)(1) of the FAA Act (27
U.S.C. 205(e)(1)) authorizes the issuance
of regulations that prohibit deception of
the consumer with respect to such
products or the quantity thereof, and
prohibit, irrespective of falsity, such
statements relating to age,
manufacturing processes, analyses,
guarantees, and scientific or irrelevant
matters that the Secretary finds to be
likely to be misleading to the consumer.
This section provides the basis for many
of TTB’s regulations on prohibited
practices with respect to labeling
statements.
b. Adequate information as to the
identity, quality, and alcohol content of
products, as well as the net contents
and the manufacturer/bottler/importer.
Section 105(e)(2) of the FAA Act (27
U.S.C. 205(e)(2)) authorizes the issuance
of regulations to ensure that labels
provide the consumer with adequate
information as to the identity and
quality of the product, the alcohol
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content thereof, the net contents of the
package, and the manufacturer or bottler
or importer of the product. This section
provides the basis for most of the
mandatory information requirements in
the TTB labeling regulations.
With regard to alcohol content,
section 105(e)(2) sets out different
requirements for wine, distilled spirits,
and malt beverages. This section
provides the Secretary with the
authority to issue regulations that
require alcohol content statements on
labels of distilled spirits products and
for wines with an alcohol content of
over 14 percent alcohol by volume,
leaving such statements optional for
wines with an alcohol content at or
below 14 percent. Furthermore, the FAA
Act contains language that specifically
prohibits placement of alcohol content
statements on malt beverage labels,
unless required by State law. In 1995,
that statutory ban was struck down on
First Amendment grounds by the U.S.
Supreme Court in Rubin v. Coors
Brewing Co., 514 U.S. 476 (1995)
(hereinafter referred to as the ‘‘Coors’’
decision).
c. Statement of neutral spirits. Section
105(e)(3) of the FAA Act (27 U.S.C.
205(e)(3)) authorizes the issuance of
regulations that require an accurate
statement in the case of distilled spirits
(other than cordials, liqueurs, and
specialties) produced by blending or
rectification, if neutral spirits have been
used in the production thereof,
informing the consumer of the
percentage of neutral spirits so used and
of the name of the commodity from
which such neutral spirits have been
distilled, or in the case of neutral spirits
or of gin produced by a process of
continuous distillation, the name of the
commodity from which distilled. These
very specific statutory provisions are
incorporated into the TTB distilled
spirits labeling regulations.
d. Prohibition of statements that are
disparaging, false, misleading, obscene,
or indecent. Section 105(e)(4) (27 U.S.C.
205(e)(4)) authorizes the issuance of
regulations to prohibit labeling
statements that are disparaging of a
competitor’s products or are false,
misleading, obscene or indecent. This
provision is reflected in TTB’s current
regulations on prohibited practices.
e. Prohibition of implied
endorsements that are false or
misleading. Section 105(e)(5) (27 U.S.C.
205(e)(5)) authorizes the issuance of
regulations that prevent deception of the
consumer by use of a trade or brand
name that is the name of any living
individual of public prominence, or
existing private or public organization,
or is a name that is in simulation or an
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abbreviation thereof, and will prevent
the use of a graphic, pictorial, or
emblematic representation of any such
individual or organization, if the use of
such name or representation is likely to
falsely lead the consumer to believe that
the product has been endorsed, made or
used by, or produced for, or under the
supervision of, or in accordance with
the specifications of, such individual or
organization. Certain ‘‘grandfathering’’
provisions are included in this section.
These provisions are incorporated into
the current regulations on prohibited
practices.
5. Prohibition of Alteration, Mutilation,
Destruction, Obliteration, or Removal of
Labels
Section 105(e) makes it unlawful for
any person to alter, mutilate, destroy,
obliterate, or remove any mark, brand,
or label upon wine, distilled spirits, or
malt beverages held for sale in interstate
or foreign commerce or after shipment
therein. An exception is made where the
activity is authorized by Federal law.
The FAA Act also authorizes the
Secretary to issue regulations
authorizing relabeling for the purposes
of compliance with the requirements of
section 105(e) or of State law. These
regulations are found in parts 4, 5 and
7 of 27 CFR.
6. Certificate of Label Approval
Requirements
Section 105(e) of the FAA Act sets out
very specific requirements for the
issuance of certificates of label approval
(COLAs) by the Secretary. The law
provides that ‘‘[i]n order to prevent the
sale or shipment or other introduction
of distilled spirits, wine, or malt
beverages in interstate or foreign
commerce, if bottled, packaged, or
labeled in violation of the requirements
of this subsection,’’ certain persons are
required to obtain a COLA prior to
bottling distilled spirits, wine, or malt
beverages.
The persons covered by this
requirement under the law are bottlers
of distilled spirits; producers, blenders,
and wholesalers of wine, and
proprietors of a bonded wine storeroom;
and brewers and wholesalers of malt
beverages. With regard to imported
products, the law provides that no
person shall remove from customs
custody, in bottles, for sale or any other
commercial purpose, distilled spirits,
wine, or malt beverages, without first
obtaining a COLA. The law provides
that such COLAs are to be issued in
such manner and form as the Secretary
shall prescribe by regulations.
The law goes on to allow for the
issuance of certificates of exemption,
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pursuant to regulations issued by the
Secretary, when an applicant has shown
to the satisfaction of the Secretary that
the wine, distilled spirits, or malt
beverages to be bottled by the applicant
are not to be sold, or offered for sale, or
shipped or delivered for shipment, or
otherwise introduced, in interstate or
foreign commerce. The law provides for
the issuance of these certificates to
bottlers of distilled spirits; producers,
blenders, or wholesalers of wine, or
proprietors of a bonded wine storeroom;
and brewers and wholesalers of malt
beverages. However, the law does not
authorize the issuance of certificates of
exemption to persons removing alcohol
beverages in containers from customs
custody, presumably because those
products will by definition be
introduced in interstate or foreign
commerce.
7. Advertising Provisions of the FAA
Act
Section 105(f) of the FAA Act (27
U.S.C 205(f)) provides similar authority
to the Secretary to prescribe regulations
with respect to the advertising of wine,
distilled spirits, and malt beverages.
The Secretary is authorized to
prescribe regulations that will prevent
deception of the consumer and to
prohibit, irrespective of falsity, such
statements relating to age,
manufacturing processes, analyses,
guarantees, and scientific or irrelevant
matters that the Secretary finds to be
likely to mislead the consumer. See 27
U.S.C. 205(f)(1). The Secretary is also
authorized to prescribe regulations to
ensure that advertisements provide the
consumer with adequate information as
to the identity and quality of the
products advertised, the alcohol content
thereof, and the person responsible for
the advertisement. See 27 U.S.C.
205(f)(2). The statute bans alcohol
content statements on advertisements of
both wine and malt beverages; this
provision was not the subject of the
Supreme Court’s decision in Coors.
The FAA Act contains advertising
provisions that are very similar to the
labeling provisions with regard to
disclosure of neutral spirits (27 U.S.C.
205(f)(3)) and the prohibition of
statements that are disparaging, false,
misleading, obscene, or indecent (27
U.S.C. 205(f)(4)). The FAA Act also
authorizes the issuance of regulations to
prevent advertising statements that are
inconsistent with any statement on the
labeling of the products advertised. (27
U.S.C. 205(f)(5)).
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8. Special Rules for Malt Beverages
Under the FAA Act
The statutory requirements for malt
beverages under the FAA Act differ
from the requirements for distilled
spirits and wine. Most notably for
purposes of this document, the labeling
provisions of the FAA Act apply to the
labeling of malt beverages sold or
shipped or delivered for shipment or
otherwise introduced into or received in
any State from any place outside of that
State ‘‘only to the extent that the law of
such State imposes similar requirements
with respect to the labeling’’ of malt
beverages sold within that State. See 27
U.S.C. 205(f).
The penultimate paragraph of section
105(f) also provides that the advertising
provisions of the FAA Act apply to the
advertising of malt beverages intended
to be sold or shipped or delivered for
shipment or otherwise introduced into
or received in any State from any place
outside of that State, only to the extent
that the law of that State imposes
‘‘similar requirements’’ with respect to
the advertising of malt beverages to be
sold within that State.
9. Alcoholic Beverage Labeling Act
(ABLA)
The Alcoholic Beverage Labeling Act
of 1988 (ABLA) requires that a specific
health warning statement appear on the
labels of all containers of alcohol
beverages for sale or distribution in the
United States. See 27 U.S.C. 215. This
requirement applies to both interstate
and intrastate sale and distribution of
alcoholic beverages. In addition, the
health warning statement must appear
on containers of alcoholic beverages that
are sold, distributed, or shipped to
members or units of the U.S. Armed
Forces, including those located outside
the United States.
The health warning statement
required by ABLA advises consumers of
the risks of birth defects to pregnant
women, impairment of the ability to
operate a car or other machinery, and
other potential health problems
resulting from the consumption of
alcoholic beverages. As stated in 27
U.S.C. 213:
The Congress finds that the American
public should be informed about the health
hazards that may result from the
consumption or abuse of alcoholic beverages,
and has determined that it would be
beneficial to provide a clear, nonconfusing
reminder of such hazards, and that there is
a need for national uniformity in such
reminders in order to avoid the promulgation
of incorrect or misleading information * * *.
ABLA provides that no State may
require any statement concerning
alcoholic beverages and health, other
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than the required health warning
statement, on any alcoholic beverage
container, box, carton, or other package
that contains such a container. See 27
U.S.C. 216.
This proposed rule does not affect
ABLA labeling requirements.
10. Internal Revenue Code Marking
Requirements
In addition to the FAA Act and
ABLA, Chapter 51 of the Internal
Revenue Code of 1986 (IRC), (26 U.S.C.
5001 et seq.), sets forth certain marking
requirements for alcohol beverage
products. Chapter 51 of the IRC imposes
Federal excise taxes on beer, wine, and
distilled spirits, and provides for the
regulation of alcohol beverages to
protect the revenue associated with
those taxes. The tax rates differ
depending on the product, and the
marking requirements provide for the
proper determination of tax liability
based on the identity of the product.
This proposed rule does not amend
IRC labeling requirements. However,
some IRC labeling regulations require
compliance with certain FAA Act
labeling regulations by cross-referencing
labeling provisions in 27 CFR parts 4, 5
or 7, as applicable.
B. Current TTB Alcohol Beverage
Labeling and Advertising Regulations
1. History
The first regulations implementing
the labeling and advertising provisions
of the FAA Act were promulgated in
1936 by the Federal Alcohol
Administration (FAA). Over the next
several decades, various amendments to
these regulations were published by
TTB’s other predecessor agencies, the
Internal Revenue Service (IRS), and the
Bureau of Alcohol, Tobacco and
Firearms (ATF). TTB assumed
responsibility for the enforcement and
implementation of these regulations in
January of 2003, pursuant to the
Homeland Security Act of 2002.
2. FAA Act-Based Regulations
The TTB regulations that implement
the labeling and advertising provisions
of the FAA Act, as they relate to wine,
distilled spirits, and malt beverages, are
set forth in chapter I of title 27 of the
Code of Federal Regulations (27 CFR
chapter I). Specifically, these
regulations are codified in 27 CFR part
4, Labeling and Advertising of Wine (27
CFR part 4); 27 CFR part 5, Labeling and
Advertising of Distilled Spirits (27 CFR
part 5); and 27 CFR part 7, Labeling and
Advertising of Malt Beverages (27 CFR
part 7).
a. Mandatory and prohibited labeling
information. The TTB regulations
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contained in 27 CFR parts 4, 5, and 7
require that all wine, distilled spirits,
and malt beverages sold or shipped in,
or otherwise introduced into, interstate
commerce bear labels that contain
certain mandatory information. The
regulations also set conditions on the
use of certain non-mandatory
information and specifically prohibit
labeling statements that are false or tend
to create a misleading impression.
Provisions in parts 4, 5, and 7
currently require similar mandatory
information to appear on labels of wine,
distilled spirits, and malt beverages,
with some exceptions and with some
notable differences among the
commodities. The regulations in some
circumstances also contain provisions
regarding the placement of the
mandatory information. Commodityspecific rules are discussed more fully
in later sections of this document, but
a general description of the current
labeling requirements is provided here.
The mandatory information that must
appear on alcohol beverage labels
includes such things as the brand name
of the product; a statement of the class,
type, or other designation of the
product; the name and address of the
bottler or importer; a statement of the
net contents; and declarations relating
to sulfites or added colors in the
product. Alcohol content statements,
expressed as a percentage of alcohol by
volume, are required for distilled spirits,
wine over 14 percent alcohol by
volume, and certain flavored malt
beverages. These requirements, as well
as certain exceptions to these
requirements, are set forth later in this
preamble.
With regard to the class, type, or other
designation, the regulations specify and
describe 9 ‘‘classes’’ of wine, including
‘‘grape wine’’ and ‘‘fruit wine,’’ and 12
‘‘classes’’ of distilled spirits, including
‘‘whisky’’ and ‘‘brandy.’’ Some classes
are further subdivided into ‘‘types.’’ For
example, types of ‘‘grape wine’’ include
‘‘table wine’’ and ‘‘dessert wine,’’ while
types of whisky include ‘‘bourbon
whisky’’ and ‘‘blended whisky.’’ For
malt beverages, the TTB regulations
refer to certain classes but do not
provide specific standards of identity
for those classes. Instead, the
regulations provide that statements of
class and type must ‘‘conform to the
designation of the product as known to
the trade.’’
If a wine or distilled spirit does not
fall within any class, and if a malt
beverage is not known to the trade
under a particular designation, the
regulations require that a truthful and
adequate statement of composition
appear on the label as the statement of
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class and type. While the term
‘‘statement of composition’’ is not
currently defined in the regulations,
TTB’s general policy has been to require
that such a statement identify the base
product and any added flavoring or
coloring materials. For example, a
statement of composition may be ‘‘grape
wine with raspberry flavor added,’’ ‘‘a
blend of vodka and coconut liqueur,’’ or
‘‘ale brewed with watermelon juice.’’
As noted above, the ‘‘net contents’’
must appear on containers. This is
required for all three commodities. TTB
regulations provide standards of fill for
wine and distilled spirits products but
not for malt beverages. This means that
the net contents of wine and distilled
spirits containers must be consistent
with specified quantities prescribed by
the standards of fill requirements (such
as 750 milliliters).
Certain types of information or
representations are prohibited from
appearing on alcohol beverage labels,
and these are set forth in regulations
entitled ‘‘prohibited practices.’’ See
current 27 CFR 4.39, 5.42, and 7.29, for
wine, distilled spirits, and malt
beverages, respectively. Some labeling
practices are prohibited outright on
alcohol beverage labels for any of the
commodities. For example, no false or
obscene statement may appear on any
alcohol beverage label or container.
Other practices are prohibited if
presented in a manner that is
misleading.
Some practices may be prohibited for
just one of the commodities. For
example, existing regulations prohibit
certain uses of the term ‘‘pure’’ on
distilled spirits labels. Other labeling
practices may be used on labels if they
comply with certain rules. These
include the use of a living person’s
name or likeness and statements making
claims about whether the product is
organic.
b. Alcohol advertising regulations.
TTB also promulgates regulations
covering the advertising of wine,
distilled spirits, and malt beverages.
These regulations prescribe mandatory
information that must be included in an
advertisement (such as identification of
the responsible party) and also prohibit
certain practices similar to the
prohibited practices for labels. The
advertising regulations are currently
found in subpart G of part 4, subpart H
of part 5, and subpart F of part 7.
3. TTB’s ABLA-Based Regulations
As previously noted, all alcohol
beverages bottled or imported for sale or
distribution in the United States must
bear the health warning statement
required by the ABLA, even if the
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product is not sold in interstate
commerce. The regulations promulgated
under the authority of the ABLA are set
forth in 27 CFR part 16, Alcoholic
Beverage Health Warning Statement (27
CFR part 16). As noted above, this
proposal does not affect ABLA labeling
requirements.
4. TTB’s IRC Marking Regulations
Finally, regulations implementing the
IRC marking requirements appear in 27
CFR parts 19, 24, and 25 (relating to,
respectively, domestic producers and
bottlers of distilled spirits, wines, and
beer), as well as 27 CFR parts 26, 27,
and 28 (relating to distilled spirits,
wine, and beer that are, respectively,
brought into the United States from
Puerto Rico and the Virgin Islands,
imported into the United States, and
exported from the United States). As
noted above, this proposal does not
affect these IRC-based regulations.
C. The Certificate of Label Approval
(COLA) Process
As noted above, a person who intends
to bottle wine, distilled spirits, or malt
beverages, or remove those products
from customs custody in bottles, for
introduction into interstate or foreign
commerce must, before doing so, obtain
approval of the labels for the bottles
through a COLA issued by TTB.
Currently, each application for a COLA
is reviewed by a TTB specialist for
compliance with the FAA Act and TTB
regulations. In fiscal year 2015, TTB
received over 153,000 applications for
label approval. The time between the
date of application and final TTB
determination on the application
averaged approximately 24 days.
In part, the increase in the number of
COLA applications is due to the
growing number of industry members
submitting applications and to product
innovations and expansions in product
lines by industry members. In addition,
because industry members seek to bring
products to market quickly, they may
submit label approval applications early
in their product development process,
before the product and its marketing
have been finalized. These industry
members may submit several
applications for different potential
labels to cover the different possible
ways that product may eventually be
formulated and marketed once ready for
market.
To implement the FAA Act provision
requiring the issuance of COLAs, TTB
regulations provide a process through
which a person can submit an
application for approval of a label, along
with a copy of the label, and obtain TTB
approval of the label through the
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issuance by TTB of a COLA. The COLA
is evidence that a label has been
reviewed for compliance with the TTB
regulations and approved for use. The
requirement to obtain a COLA for
domestic and imported products is set
forth in subparts E and F of part 4 (for
wine), subparts E and F of part 5 (for
distilled spirits), and subparts D and E
of part 7 (for malt beverages). The
procedures governing the issuance and
revocation of COLAs are set forth in 27
CFR part 13, Labeling Proceedings (27
CFR part 13).
The regulations also authorize the
issuance of certificates of exemption for
wine and distilled spirits when the
applicant establishes that the wine or
distilled spirits product is not to be
sold, offered for sale, or shipped or
delivered for shipment, or otherwise
introduced in interstate or foreign
commerce. It should be noted that TTB
and its predecessor agencies have never
issued regulations requiring certificates
of exemption for malt beverages that
will not be sold or otherwise introduced
in interstate or foreign commerce.
Furthermore, the regulations do not
require malt beverages that will not be
sold or otherwise introduced in
interstate or foreign commerce to be
covered by a certificate of label
approval. See TTB Ruling 2013–1. This
issue will be discussed later in this
preamble.
1. COLA Streamlining Initiatives
TTB has undertaken several
initiatives to streamline the label
approval process. In 2003, TTB
implemented COLAs Online, a system
that allows industry members to submit
electronic applications for label
approval. Currently, over 90 percent of
COLA applications are submitted and
processed electronically. More recently,
in 2013, TTB began electronically
processing applications that are
received on paper.
On July 5, 2012, TTB published a
revised version of TTB Form 5100.31,
‘‘Application for and Certification/
Exemption of Label/Bottle Approval.’’
The most significant change was to
expand the list of items that may be
changed on an approved alcohol
beverage label without resubmission of
the label for TTB approval. This new
policy, which is reflected on the form,
reduces the number of label
applications that industry members
would otherwise send to TTB. As a
result, label applications were reduced
by 8 percent. In 2014 TTB expanded the
list of changes that may be made to
approved labels without requiring those
labels to be resubmitted to TTB for
review—this expanded list has been
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incorporated into the form (see TTB
Industry Circular 2014–02 and TTB F
5100.31).
TTB has also been working on
additional initiatives to streamline label
review. These include making
processing improvements designed to
speed up review turnaround times;
updating labeling guidance on the TTB
website (https://www.ttb.gov) to help
industry members comply with its
labeling requirements; and researching
industry needs and studying other
Federal agencies’ best practices so that
TTB can continue to improve its label
review process in the future.
D. Modernization of the Alcohol
Beverage Labeling and Advertising
Regulations
As part of the Department of the
Treasury’s ‘‘Plan for Retrospective
Analysis of Existing Rules,’’ TTB has
been reviewing its existing labeling and
advertising of wine, distilled spirits, and
malt beverages regulations. TTB
proposes to amend these regulations to
improve their clarity and readability, to
improve compliance, and to ease
burdens on the regulated industry. The
amended regulations will take into
account modern business practices and
contemporary consumer understanding
in order to modernize the regulations.
In this proposed rule, TTB intends to
clarify, update, and consolidate labeling
requirements and, where possible, to set
forth objective standards for meeting
those requirements. This effort also will
help TTB use its limited resources more
efficiently, facilitate the development
and use of more efficient systems for
processing applications, and reduce the
processing time for label applications.
In preparation for this rulemaking,
TTB reviewed its regulations, public
guidance, and labeling review practices
to identify policies and interpretations
that are relevant but have not yet been
codified in the regulations, as well as
those that are no longer relevant and can
be eliminated. In all, TTB reviewed 90
rulings and industry circulars, and
incorporated all or parts of
approximately 38 of them into the
proposed regulations. When these
proposed regulations become final,
those rulings and industry circulars, or
parts thereof, will be superseded by the
regulations. TTB also determined that
eight rulings and industry circulars
were no longer relevant and thus could
be superseded without being
incorporated.
As a result, the proposed regulations,
when finalized, will provide industry
with a more comprehensive source for
the general rules applicable to alcohol
beverage labeling. In addition, in
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updating these regulations, TTB sought
to make the rules applicable to all three
commodities as consistent as possible,
recognizing that some differences in
treatment are required by statute and
others by the nature of the commodity
or industry practice.
E. Plain Language Principles
On June 1, 1998, the President issued
a memorandum that requires Federal
agencies to write regulations in ‘‘plain
language.’’ These proposed regulations
have been written in the plain language
style. The proposed regulations:
• Use the active voice in the
regulations, whenever possible;
• Use shorter sentences, paragraphs,
and sections;
• Minimize the use of jargon and
unnecessary technical terms;
• Clarify and simplify the regulatory
requirements;
• Create consistency in the treatment
of the three commodities, as
appropriate;
• Break large sections into smaller,
more focused sections for better
readability; and
• Make it easier for readers to find
information through the tables of
contents.
F. Scope of This Rulemaking
As mentioned above, TTB is
undertaking this modernization effort to
improve understanding of the regulatory
requirements and to make compliance
easier and less burdensome. In addition,
the proposed rule will incorporate
changes in labeling standards that have
come about through statutory changes
(such as the change to the labeling of
wines with semi-generic designations)
and international agreements (through
the incorporation of various
designations of geographic significance).
In the case of wine, we are proposing
greater flexibility in the use of certain
appellations of origin and multiple
varietal designations, both to comply
with international commitments and to
provide more information to consumers
through greater flexibility in the use of
this optional information on labels. For
all products, TTB is proposing greater
flexibility with regard to the placement
of mandatory information on labels.
TTB is also reflecting contemporary
case law with regard to the protection of
commercial speech under the First
Amendment. In some cases, this means
codifying longstanding interpretations,
such as our policy that the prohibition
on disparaging statements on labels and
in advertisements does not prohibit
truthful and accurate comparisons with
a competitor’s product.
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With regard to malt beverages and
wine, TTB is updating the alcohol
content regulations for the first time
since the Supreme Court’s decision in
Rubin v. Coors Brewing Company, 514
U.S. 476 (1995), which struck down on
First Amendment grounds the FAA
Act’s ban on alcohol content statements
on malt beverage labels. In 1993, after
the district court decision in the Coors
case but prior to the Supreme Court
decision, TTB’s predecessor agency, the
Bureau of Alcohol, Tobacco and
Firearms (ATF), issued interim
regulations allowing optional statements
of alcohol content on malt beverage
labels. See T.D ATF–339 (58 FR 21228,
April 19, 1993). TTB is now proposing
to finalize updated alcohol content
regulations, including, in this
document, amendments that would
modernize the regulations on strength
claims to remove outdated language,
such as the ban on use of the term ‘‘prewar strength,’’ which refers to the
period before World War I.
This proposed rule would also
incorporate certain proposals previously
aired for comment by TTB in notices or
advance notices of proposed
rulemaking, including proposals on the
use of ‘‘estate grown’’ on wine labels,
and the use of aggregate packaging to
satisfy standards of fill for distilled
spirits and wine containers.
TTB is also proposing several
amendments that would protect
consumers by providing certain more
specific labeling and packaging rules.
For example, existing regulations
require mandatory information to
appear on opaque packaging of distilled
spirits and wine, because consumers are
unable to see the label on the container
without removing the container from
the packaging. TTB is proposing to
extend this requirement to malt
beverages.
TTB is also proposing to require
mandatory information to appear on any
‘‘closed packaging’’ of wine, distilled
spirits, or malt beverages. The proposed
amendments define closed packaging to
include packaging where the mandatory
information on the label of the container
is not visible to the consumer because
the container cannot be readily removed
from the packaging. Packaging is
considered closed if the consumer must
open, rip, untie, unzip, or otherwise
manipulate the package to remove the
container in order to view any of the
mandatory information.
TTB has noted that today’s industry
increasingly uses terms that apply to
one commodity on labels of a different
commodity. For example, TTB sees
many wine and malt beverage labels
that include distilled spirits terms or
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malt beverage labels that include wine
terms. TTB is proposing a specific
regulatory provision to prohibit the use
of such terms when they might mislead
consumers as to the identity of the
product, while allowing the nonmisleading use of certain terms (such as
references to aging malt beverages in
barrels previously used for the storage of
distilled spirits or wine).
TTB solicits comments on whether
these proposals will protect consumers
and whether they will require
significant labeling changes by industry
members. TTB proposes to give all
affected parties three years to come into
compliance with the proposed
regulations, should they be finalized.
This will allow industry members to
coordinate new labeling requirements
with scheduled labeling changes, and to
use up existing stocks of labeling and
packaging.
There are a number of ongoing
rulemaking initiatives related to labeling
and advertising of alcohol beverages
that will be handled separately from this
proposed rule due to their complexity.
For example, this document does not
deal with ‘‘Serving Facts’’ statements,
an issue that was the subject of a 2007
notice of proposed rulemaking (see
Notice No. 73, 72 FR 41860, July 31,
2007) and TTB Ruling 2013–2. Nor does
TTB address its current policy requiring
statements of average analysis on labels
that include nutrient content claims.
Industry members should continue to
rely on TTB’s published rulings and
other guidance documents on these
issues. TTB’s policy on gluten content
statements is still an interim one;
therefore, that issue is not addressed in
the proposed rule (see TTB Ruling
2014–2). Substantive changes to allergen
labeling requirements are not addressed
in this document. Standards of fill
requirements are not addressed in this
document but TTB plans to address
them in a separate rulemaking
document.
In addition, this document is not
intended to specifically address
proposals that were submitted to the
Department of the Treasury in response
to a Request for Information (RFI)
published in the Federal Register (82
FR 27212) on June 14, 2017. The RFI
invited members of the public to submit
views and recommendations for
Treasury Department regulations that
can be eliminated, modified, or
streamlined, in order to reduce burdens.
The comment period for the RFI closed
on October 31, 2017.
Eight comments on the FAA Act
labeling regulations, including 28
specific recommendations, were
submitted in response to the RFI. For
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ease of reference, TTB will post the
labeling comments in the docket for this
rulemaking. We will consider all of the
labeling recommendations submitted in
response to the RFI either as comments
to this proposed rule or as suggestions
for separate agency action, as
appropriate. We note that our
preliminary review of the comments
submitted in response to the RFI
indicates that many of the topics that
were included in those
recommendations are addressed in this
proposed rule, although our proposals
may in some cases differ from those set
forth in the comments.
Finally, in this notice TTB proposes
to consolidate its alcohol beverage
advertising regulations in a new part, 27
CFR part 14, Advertising of Wine,
Distilled Spirits, and Malt Beverages.
The proposed part 14 contains only
those updates needed to conform certain
regulated practices to the updates being
proposed for the labeling provisions.
Additional updates to the regulations on
advertising to address contemporary
issues, such as social media, are not
proposed in this rulemaking but may be
proposed in future rulemaking
initiatives. Because this proposed rule
deals with such a broad scope of
modernization changes, TTB will deal
with these more specific issues in
separate rulemaking documents.
II. Proposed Revisions
A. General Reorganization of the Parts
TTB is proposing to reorganize the
contents of 27 CFR parts 4, 5, and 7, and
to add a new 27 CFR part 14. As
proposed, 27 CFR parts 4, 5, and 7
continue to contain the labeling
regulations for wine, distilled spirits,
and malt beverages, respectively, while
the current subparts of parts 4, 5, and 7
that relate to advertising are removed
from those parts and consolidated into
a new part 14. As part of TTB’s review
of the labeling regulations, TTB
reviewed the various sections and
subparts and determined that much of
their basic structure needs to be
amended. Under the current structure,
information is not always located where
a reader would expect to find it. As a
result of amendments to the regulations
over the years, certain provisions that
would logically be grouped together are
instead spread throughout a given part.
Accordingly, TTB is proposing to group
topics together in a more logical order,
with related provisions, where
appropriate, appearing in a single
subpart.
The new subparts are restructured in
a progressive order starting with general
provisions, such as defining the terms
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used in that part and specifying who is
subject to the regulations in that part.
The ‘‘general provisions’’ subpart is
followed by subparts setting forth the
circumstances under which a certificate
of label approval (COLA) is required,
how to obtain a COLA, and what
information is required on the labels
and where it must appear.
Proposed parts 4, 5, and 7 of 27 CFR
are each structured similarly.
Furthermore, within each part,
regulatory provisions that appear in
more than one part will have the same
number within the part. For example,
the regulations that set out the
mandatory information for wine,
distilled spirits, and malt beverage
labels, respectively, are found in
proposed §§ 4.63, 5.63, and 7.63. TTB
believes that this revised numbering of
the regulations will make it easier for
the public to find relevant regulations
and to compare regulations in the three
parts.
The table below shows the
organization of the proposed subparts in
parts 4, 5, and 7.
PROPOSED SUBPARTS: 27 CFR PARTS 4, 5, AND 7
Part 4 (Wine)
Part 5 (Distilled spirits)
Subpart A—General Provisions
Subpart B—Certificates of Label Approval and
Certificates of Exemption from Label Approval
Subpart C—Alteration of Labels, Relabeling,
and Adding Information to Containers
Subpart D—Label Standards
Subpart E—Mandatory Label Information
Subpart F—Restricted Labeling Statements
Subpart G—Prohibited Labeling Practices
Subpart H—Labeling Practices That are Prohibited if They are Misleading
Subpart I—Standards of Identity for Wine
Subpart A—General Provisions
Subpart B—Certificates of Label Approval and
Certificates of Exemption from Label Approval
Subpart C—Alteration of Labels, Relabeling,
and Adding Information to Containers
Subpart D—Label Standards
Subpart E—Mandatory Label Information
Subpart F—Restricted Labeling Statements
Subpart G—Prohibited Labeling Practices
Subpart H— Labeling Practices That are Prohibited if They are Misleading
Subpart I—Standards of Identity for Distilled
Spirits
Subpart J—Formulas
Subpart K—Standards for Fill and Authorized
Container Sizes
Subpart L—Recordkeeping and Substantiation
Requirements
Subpart M—Penalties and Compromise of Liability
Subpart N—Paperwork Reduction Act
Subpart J—American Grape Variety Names
Subpart K—Standards of Fill and Authorized
Container Sizes
Subpart L—Recordkeeping and Substantiation
Requirements
Subpart M—Penalties and Compromise of Liability
Subpart N—Paperwork Reduction Act
B. Proposed Changes That Apply to
Parts 4, 5 and 7
As discussed above, in proposing to
update its labeling regulations, one of
TTB’s purposes has been to apply the
same rules to wine, distilled spirits, and
malt beverages, to the extent possible, as
long as different treatment is not
required by statute or by the nature of
the commodity. Therefore, a number of
the proposed changes to the regulations
apply to parts 4, 5 and 7. These
proposed changes are described below,
in the general order in which they
appear in the proposed regulations. See
the discussion in sections II C, II D, and
II E of this document for provisions
specific to wine, distilled spirits, and
malt beverages, respectively.
1. Subpart A—General Provisions
a. Definitions. Proposed subpart A
includes several sections of general
applicability. These sections include
definitions of terms used throughout
these regulations, as well as sections
cross-referencing other regulations that
relate to the production and labeling of
the alcohol beverage products at issue.
With regard to definitions, TTB is
proposing to amend the sections in parts
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4, 5, and 7 that define the terms used
in those parts (proposed §§ 4.1, 5.1, and
7.1), to add definitions of the following
terms: ‘‘brand name,’’ ‘‘certificate
holder,’’ ‘‘certificate of exemption from
label approval,’’ ‘‘certificate of label
approval (COLA),’’ ‘‘distinctive or
fanciful name,’’ and ‘‘net contents.’’
The proposed rule defines the term
‘‘brand name’’ as the name under which
a product or product line is sold. This
definition is consistent with the current
understanding of the term and with
guidance provided in the Beverage
Alcohol Manuals (BAMs), TTB P
5120.3, 5110.7, and 5130.3, for wine,
distilled spirits, and malt beverages,
respectively, which are guidance
documents that provide the public with
interpretations of some of TTB’s
labeling regulations.
The term ‘‘certificate holder’’ is used
in the proposed text of parts 4, 5, and
7 to refer to industry members that have
obtained a COLA, certificate of
exemption from label approval, or
distinctive liquor bottle approval from
TTB. The proposed rule sets forth a
definition of ‘‘certificate holder’’ for
parts 4, 5, and 7 that is largely
consistent with that definition of that
term in part 13 of the TTB regulations
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Part 7 (Malt beverages)
Subpart A—General Provisions
Subpart B—Certificates of Label Approval
Subpart C—Alteration of Labels, Relabeling,
and Adding Information to Containers
Subpart D—Label Standards
Subpart E—Mandatory Label Information
Subpart F—Restricted Labeling Statements
Subpart G—Prohibited Labeling Practices
Subpart H— Labeling Practices That are Prohibited if They are Misleading
Subpart I—Classes and Types of Malt Beverages
Subpart J—Reserved
Subpart K—Reserved
Subpart L—Recordkeeping and Substantiation
Requirements
Subpart M—Penalties and Compromise of Liability
Subpart N—Paperwork Reduction Act
(27 CFR part 13), which governs the
issuance, denial, and revocation of
COLAs. The definition of the term
‘‘certificate of exemption from label
approval’’ is consistent with the
definition already in part 13 of the TTB
regulations.
The definition of the term ‘‘Certificate
of label approval (COLA)’’ is derived
from the definition set forth in part 13
of the TTB regulations, but includes
some proposed revisions. The proposed
definition is ‘‘A certificate issued on
TTB Form 5100.31 that authorizes the
bottling of wine, distilled spirits, and
malt beverages, or the removal of bottled
wine, distilled spirits, and malt
beverages from customs custody for
introduction into commerce, as long as
the product bears labels identical to the
labels appearing on the face of the
certificate, or labels with changes
authorized by TTB on the certificate or
otherwise.’’ The current definition in
part 13 recognizes that the COLA form
itself authorizes certain allowable
revisions to a label that may be made by
the certificate holder without having to
obtain TTB approval. The revisions
made in the proposed definition
specifically recognize that TTB may
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authorize revisions in other ways, such
as by issuing guidance on the TTB
website.
The term ‘‘distinctive or fanciful
name’’ currently refers to a term that
must be used on a distilled spirits label,
together with a truthful and adequate
statement of composition, when a
distilled spirits product does not fall
within a class and type that is specified
in the regulations or on a malt beverage
label when a malt beverage is not
known to the trade under a particular
designation. A distinctive or fanciful
name is optional on other distilled
spirits or malt beverage products. A
distinctive or fanciful name is also
optional for a wine, whether or not it
bears a statement of composition.
The proposed rule defines the term
‘‘distinctive or fanciful name,’’ which is
used in proposed parts 4, 5, and 7. The
term ‘‘distinctive or fanciful name’’ is
defined as a descriptive name or phrase
chosen to identify a product on the
label. It does not include a brand name,
class or type designation, statement of
composition, or, in part 7 only, a
designation known to the trade or
consumers.
The proposed rule adds a definition of
‘‘net contents’’ in parts 4, 5, and 7. The
‘‘net contents’’ is the amount, by
volume, of wine, distilled spirits, or
malt beverages, respectively, held in a
container. The net contents statement is
mandatory labeling information.
The proposed regulations also include
amendments to several definitions that
appear in the current regulations. These
changes reflect current TTB policy and
are clarifying in nature.
The definition of the term ‘‘container’’
is amended in parts 4 and 7 and is
added to part 5 to replace the definition
of the term ‘‘bottle.’’ The proposed rule
defines ‘‘container’’ in parts 4 and 7 as
any can, bottle, box with an internal
bladder, cask, keg, barrel, or other
closed receptacle, in any size or
material, that is for use in the sale of
wine or malt beverages, respectively, at
retail. Aside from editorial changes, this
differs from the current definitions in
that it specifically incorporates a box
with an internal bladder, sometimes
referred to as a ‘‘bag in a box.’’
The term ‘‘container’’ will replace the
term ‘‘bottle’’ in the part 5 regulations
for distilled spirits and is defined as any
can, bottle, box used to protect an
internal bladder, cask, keg, or other
closed receptacle, in any size or
material, that is for use in the sale of
distilled spirits at retail. TTB believes
that the revised definition will make it
clearer that containers of distilled spirits
may be made in a variety of materials
and sizes, and that the term is not
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restricted to traditional glass bottles.
Because of the restrictions on the size of
distilled spirits containers, the proposed
definition does not include references to
barrels. Furthermore, because there are
prescribed standards of fill for both
wine and distilled spirits, the
definitions in parts 4 and 5 include a
cross reference to those standard of fill
regulations, to clarify that containers
must be in certain sizes.
The proposed rule amends the
definition of the term ‘‘interstate or
foreign commerce’’ in parts 4, 5 and 7
to remove the provision that included
commerce within any Territory as being
interstate or foreign commerce. The
FAA Act extends to the 50 States, the
District of Columbia, and Puerto Rico.
As set forth in the definitions in the
FAA Act, the term ‘‘State’’ included a
Territory and the District of Columbia,
and the term ‘‘Territory’’ meant Alaska,
Hawaii, and Puerto Rico. See 27 U.S.C.
211(a)(1). Since the enactment of the
FAA Act in 1935, Alaska and Hawaii
have become states. Furthermore, Puerto
Rico is now a Commonwealth, which
has affected the status of transactions
that occur solely within Puerto Rico
under the FAA Act. See ATF Ruling 85–
5, which addressed this issue in the
context of the trade practice regulations
and relied, in part, on Cordova &
Simonpietri Insurance Agency, Inc. v.
Chase Manhattan Bank, 649 F. 2d 36
(1st Cir. 1981). Therefore, the proposed
rule amends the definition of ‘‘interstate
or foreign commerce’’ to remove the
language indicating that commerce
within Puerto Rico is interstate
commerce.
The proposed rule amends the
definition of the term ‘‘person’’ in all
three parts by adding ‘‘limited liability
company’’ to specifically reflect TTB’s
current position that limited liability
companies fall under the definition of a
‘‘person.’’
The proposed rule removes the term
‘‘advertisement’’ from the definition
sections in parts 4, 5, and 7, because
these parts will no longer provide
substantive rules regarding
advertisements. Instead, the proposed
rule moves the regulations regarding
advertisements to a new proposed part
14.
Finally, in this subsection and
throughout parts 4 and 5, the proposed
rule updates references to the IRC. The
existing regulations include certain
references to terms (such as ‘‘rectifier’’
or ‘‘bonded wine storeroom’’) from
previous versions of the IRC. These
terms are no longer used in the current
tax laws. The proposed rule updates
these references to include terms that
are currently used in the IRC.
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60569
b. General requirements and
prohibitions under the FAA Act.
Proposed §§ 4.3, 5.3, and 7.3 set out the
general requirements and prohibitions
under the FAA Act. Proposed §§ 4.3(a),
5.3(a), and 7.3(a) summarize the general
requirements regarding COLAs, as set
forth in greater detail in subpart B.
Proposed §§ 4.3(b), 5.3(b), and 7.3(b)
similarly summarize the prohibition
against alteration, mutilation,
destruction, obliteration, or removal of
labels, as set forth in greater detail in
subpart C. Proposed §§ 4.3(c) and (d),
5.3(c) and (d), and 7.3(c) and (d) set out
the general labeling requirements of this
part, as set forth in greater detail in
subparts D, E, F, G, H, and I. Finally,
proposed §§ 4.3(e) and 5.3(e) summarize
the general bottling and standards of fill
requirements, which are set out in
subpart K for wine and distilled spirits.
(Malt beverages are not subject to
standard of fill requirements.)
Proposed §§ 4.3(d), 5.3(d), and 7.3(d)
also set out for the first time in the
regulations TTB’s position that in order
to be labeled in accordance with the
regulations in these parts, a container
may not contain an adulterated alcohol
beverage within the meaning of the
Federal Food, Drug, and Cosmetic Act.
It is TTB’s longstanding position that
adulterated distilled spirits, wines, and
malt beverages are mislabeled within
the meaning of the FAA Act, even if the
bottler or importer of the product in
question has obtained a COLA or an
approved formula. See Industry Circular
2010–8, dated November 23, 2010. No
adulterated distilled spirits, wines, or
malt beverages can satisfy the labeling
requirements of the FAA Act. Subject to
the jurisdictional requirements of the
FAA Act, mislabeled distilled spirits,
wines, and malt beverages, including
adulterated products, may not be sold or
shipped, delivered for sale or shipment,
or otherwise introduced or received in
interstate or foreign commerce, or
removed from customs custody for
consumption, by a producer, importer,
or wholesaler, or other industry member
subject to 27 U.S.C. 205(e).
c. Exports in bond. The current
regulations exempting products for
export from the labeling regulations
under the FAA Act are somewhat
inconsistent. In existing §§ 4.80 and
7.60, wine and malt beverages
‘‘exported in bond’’ are exempted from
the requirements of those respective
parts. However, current § 5.1, which is
entitled ‘‘General,’’ provides that part 5
‘‘does not apply to distilled spirits for
export.’’
TTB believes that the exemptions in
all three parts should be consistent and
should be restricted to exportations in
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bond. In general, the bottler is required
to obtain a COLA prior to removal of the
product from the premises. Products
that are removed subject to tax may
subsequently be exported or may end up
in the domestic market, and therefore
are not exempted from the labeling
requirements of the FAA Act.
Accordingly, proposed §§ 4.8, 5.8, and
7.8 provide that products exported in
bond directly from a bonded wine
premises, distilled spirits plant, or
brewery, respectively, or from customs
custody, are not subject to the
regulations under these parts. The
amendment clarifies that exportation in
bond does not include exportation after
wine, distilled spirits, or malt beverages
have been removed for consumption or
sale in the United States, with
appropriate tax determination or
payment. This is only a clarifying
change in parts 4 and 7. With regard to
part 5, TTB seeks comments on whether
this proposed change will impact
existing practices, and if so, what the
impact will be.
d. Compliance with Federal and State
requirements. For the first time, parts 4,
5, and 7, will make clear that
compliance with the requirements of the
respective parts relating to the labeling
and bottling of wine, distilled spirits
and malt beverages does not relieve
industry members from responsibility
for complying with other applicable
Federal and State requirements (see
proposed §§ 4.9, 5.9, and 7.9).
These sections also provide that it
remains the responsibility of the
industry member to ensure that any
ingredient used in the production of
alcohol beverages complies fully with
all applicable Food and Drug
Administration (FDA) regulations
pertaining to the safety of food
ingredients and additives and that TTB
may at any time request documentation
to establish such compliance. In
addition, these three sections provide
that it remains the responsibility of the
industry member to ensure that
containers are made of suitable
materials that comply with all
applicable FDA health and safety
regulations for the packaging of alcohol
beverages for consumption and that TTB
may at any time request documentation
to establish such compliance.
It is TTB’s longstanding position that
its review of labels and formulas does
not relieve the industry member from its
responsibility to ensure compliance
with applicable FDA regulations. See,
e.g., Industry Circular 2010–8, dated
November 23, 2010, entitled ‘‘Alcohol
Beverages Containing Added Caffeine,’’
in which TTB reminded industry
members as follows:
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* * * each producer and importer of alcohol
beverages is responsible for ensuring that the
ingredients in its products comply with the
laws and regulations that FDA administers.
TTB’s approval of a COLA or formula does
not imply or otherwise constitute a
determination that the product complies with
the [Federal Food, Drug, and Cosmetic Act],
including a determination as to whether the
product is adulterated because it contains an
unapproved food additive.
See also Industry Circular 62–33. The
instructions on the forms for formula
approval repeat this message. Now, TTB
is proposing to codify this position in
the regulations.
e. Cross references to other
regulations. Proposed §§ 4.10, 5.10, and
7.10 are derived from current §§ 4.5, 5.2,
and 7.4 and include an expanded list of
regulations implemented by other
Federal agencies of which industry
members should be aware. While the
list does not purport to be
comprehensive, TTB believes it will be
helpful to industry members.
2. Subpart B—Certificates of Label
Approval (for Wine, Distilled Spirits
and Malt Beverages) and Certificates of
Exemption From Label Approval (for
Wine and Distilled Spirits)
a. Certificates of label approval
(COLAs) and certificates of exemption
from label approval. The regulations
implementing the statutory requirement
for (COLAs) (for wine, distilled spirits
and malt beverages) and certificates of
exemption (for wine and distilled
spirits) are reorganized for clarity. The
proposed regulations also set forth, for
the first time, some of the things that a
COLA does not do. Specifically, the
proposed regulations provide that,
among other things, a COLA does not
confer trademark protection; relieve the
certificate holder from its responsibility
to ensure that all ingredients used in the
production of wine, distilled spirits, or
malt beverages comply with applicable
requirements of the FDA with regard to
ingredient safety; or relieve the
certificate holder from liability for
violations of the FAA Act, the ABLA,
the IRC, or related regulations and
rulings.
The proposed revisions reflect the
longstanding policy of TTB and its
predecessor agencies. Furthermore, the
COLA form (TTB Form 5100.31,
Application for and Certification/
Exemption of Label/Bottle Approval),
currently specifically provides that the
issuance of a COLA does not confer
trademark protection and does not
relieve the applicant from liability for
violations of the FAA Act, the ABLA,
the IRC, or related regulations and
rulings. TTB believes that these
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revisions will clarify this position for
the public and industry members.
b. Certificates of exemption. Proposed
§§ 4.23 and 5.23 incorporate current
regulatory requirements with regard to
the issuance of certificates of exemption
to bottlers of wine and distilled spirits.
Consistent with the current regulations,
the proposed rule provides that the
bottler may obtain a certificate of
exemption upon establishing, to the
satisfaction of the appropriate TTB
officer, that the wine or spirits to be
bottled will be offered for sale only
within the State in which bottled, and
that they will not be sold, offered for
sale, shipped or delivered for shipment,
or otherwise introduced, in interstate or
foreign commerce.
Consistent with the instructions for
Item 18 that currently appear on the
TTB Form 5100.31, the proposed
regulations provide that, as a condition
for receiving exemption from label
approval, the label covered by a
certificate of exemption must include
the statement, ‘‘For sale in [name of
State] only.’’ It should be noted that it
is TTB’s current practice to issue
certificates of exemption conditioned on
the applicant’s agreement to add this
statement to the container. Under the
proposed regulations, TTB will require
applicants to include this statement on
a label submitted with the application
for a certificate of exemption.
c. COLAs for Imported Wine, Distilled
Spirits, and Malt Beverages. Consistent
with current regulations, proposed
§§ 4.24, 5.24, and 7.24 provide that
wine, distilled spirits, and malt
beverages, imported in containers, are
not eligible for release from customs
custody for consumption unless the
person removing the wine, distilled
spirits, or malt beverages has obtained
and is in possession of a COLA. The
regulations, as amended by the final
rule facilitating the use of the
International Trade Data System (ITDS)
(T.D. TTB–145, 81 FR 94186, December
22, 2016), require importers who file
electronically to file with CBP the
identification number assigned to the
approved COLA. If the importer is not
filing electronically, the importer must
provide a copy of the COLA to CBP at
the time of entry.
d. Administrative rules. In proposed
subpart B of parts 4, 5, and 7, several
sections are grouped under the heading
of ‘‘Administrative Rules.’’ These
sections set forth requirements for
presenting COLAs to government
officials; submitting formulas, samples,
and other documentation related to
obtaining or using COLAs; and applying
for and obtaining permission to use
personalized labels.
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The requirement that a certificate
holder must present a COLA upon
request by any duly authorized
representative of the United States
Government (at proposed §§ 4.27, 5.27,
and 7.27) reflects current provisions (at
current §§ 4.51, 5.55(c), and 7.42) but
adds the provision that the COLA may
be the original or a copy (including an
electronic copy).
i. Formula requirements. TTB
currently has specific formula
requirements for certain domestic
products. These are found in parts 5 and
19 for distilled spirits, in part 24 for
wine, and in part 25 for beer. However,
TTB often finds it necessary to obtain
more specific information about a
product that is not otherwise subject to
the formula requirements in connection
with the COLA review process.
For many imported alcohol beverage
products, TTB requires a product
evaluation to determine whether a
proposed label identifies the product in
an adequate and non-misleading way.
Pre-COLA product evaluation entails a
review of a product’s ingredients and
formulation and also may include a
laboratory analysis of the product.
Laboratory analysis involves a chemical
analysis of a product. Such pre-COLA
product evaluations ensure that:
• No alcohol beverage contains a
prohibited ingredient.
• Ingredients are used within
limitations or restrictions prescribed by
TTB or another Federal agency, as
applicable.
• Appropriate tax and product
classifications are made.
• Alcohol beverages labeled without a
sulfite declaration contain less than 10
parts per million (ppm) of sulfur
dioxide.
The type of pre-COLA product
evaluation required for a particular
product depends on that product’s
formulation and origin. Industry
Circular 2007–4, ‘‘Pre-COLA Product
Evaluation,’’ dated September 11, 2007,
includes a list of the imported products
for which TTB currently requires
formulas and other pre-COLA analyses.
The Industry Circular also announced
that TTB had developed a new form that
may be submitted in lieu of the various
forms and formats otherwise prescribed
in the regulations for specific products.
TTB developed the form, TTB F
5100.51, ‘‘Formula and Process for
Domestic and Imported Alcohol
Beverages,’’ to simplify the formula
submission process and to provide a
more consistent means of information
collection across all commodity areas
for both imported and domestic
products. The Circular stated that TTB
intended to pursue a regulatory change
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that will make use of this form
mandatory, entirely replacing the
various industry-specific forms and
formats currently set forth in the TTB
regulations. Until such a change occurs,
this form may be used voluntarily as an
alternate procedure. A producer or
importer who wishes to use TTB F
5100.51 may submit that form in lieu of
the forms prescribed in the regulations
without first requesting approval from
TTB to do so.
Current regulations in §§ 4.38(h),
5.33(g), and 7.31(d) authorize TTB to
request more information about the
contents of a wine, distilled spirits
product or malt beverage, but the
language in part 7 is different from the
language in parts 4 and 5. Sections
4.38(h) and 5.33(g) provide that, upon
request of the appropriate TTB officer,
a bottler or importer must submit a full
and accurate statement of the contents
of any container to which labels are to
be or have been affixed. The regulations
in § 7.31(d) state that the appropriate
TTB officer may require an importer to
submit a formula for a malt beverage, or
a sample of any malt beverage or
ingredients used in producing a malt
beverage, prior to or in conjunction with
the filing of an application for a COLA.
TTB is proposing to standardize the
regulatory language in parts 4, 5 and 7
on this issue. Accordingly, proposed
§§ 4.28, 5.28, and 7.28 provide that the
appropriate TTB officer may require a
bottler or importer to submit a formula,
the results of laboratory testing, and
samples of the product or ingredients
used in the final product, prior to or in
conjunction with the review of an
application for label approval. The
proposed regulations also provide that
TTB may request such information after
the issuance of a COLA, or in
connection with any product that is
required to be covered by a COLA. The
proposed regulations also provide that,
upon request of the appropriate TTB
officer, a bottler or importer must
submit a full and accurate statement of
the contents of any container to which
labels are to be or have been affixed, as
well as any other documentation on any
issue pertaining to whether the wine,
distilled spirits, or malt beverage is
labeled in accordance with the TTB
regulations. These amendments reflect
current TTB policy.
As noted above, current TTB
regulations and industry practice
involve the submission of alcohol
beverage formulas in varying forms and
formats depending on the type of
alcohol beverage and whether the
product is domestically produced or
imported. TTB believes that this
multiplicity of procedures is
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60571
unnecessarily complicated and
burdensome for both the regulated
industries and TTB. Accordingly, we
propose in this document to amend the
TTB regulations in parts 4, 5, and 7 to
provide that a formula may be filed
electronically by using Formulas
Online, or it may be submitted on paper
on TTB Form 5100.51. TTB anticipates
proposing similar revisions to the IRC
regulations in the near future. TTB notes
that many industry members now use
Formulas Online to submit formulas,
and encourages all industry members to
consider the advantages of online filing.
ii. Personalized labels. The proposed
regulations also set forth, for the first
time, the process for applicants seeking
label approval to receive permission
from TTB to make certain changes in
order to personalize labels without
having to resubmit the labels for TTB
approval (see §§ 4.29, 5.29, and 7.29).
Personalized labels may contain a
personal message, picture, or other
artwork that is specific to the consumer
who is purchasing the product. For
example, a producer may offer custom
labels to individuals or businesses that
commemorate an event such as a
wedding or grand opening.
Consistent with current policy, as set
forth in TTB G 2011–5 and TTB G 2010–
1, the proposed regulations provide that
label applicants who intend to offer
personalized labels must submit a
template for the personalized label with
their application for label approval, and
note on the application a description of
the specific personalized information
that may change. If the application
complies with the regulations, TTB will
issue a COLA with a qualification that
allows the personalization of labels. The
qualification will allow the certificate
holder to add or change items on the
personalized label such as salutations,
names, graphics, artwork,
congratulatory dates and names, or
event dates, without applying for a new
COLA. All of these items on
personalized labels must comply with
the regulations.
The proposed rule provides that
certain changes are not permitted on
personalized labels. These include the
addition of any information that
discusses either the alcohol beverage or
the characteristics of the alcohol
beverage, as well as information that is
inconsistent with or in violation of the
provisions of the TTB regulations or any
other applicable law or regulation.
3. Subpart C—Alteration of Labels,
Relabeling, and Adding Information to
Containers
As previously noted, the COLA
requirements of the FAA Act are
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intended to prevent the sale or shipment
or other introduction in interstate or
foreign commerce of distilled spirits,
wine, or malt beverages that are not
bottled, packaged, or labeled in
compliance with the regulations. To
ensure that products with proper labels
are not altered once such products have
been removed from bond, section 105(e)
of the FAA Act (27 U.S.C. 205(e))
further provides:
It shall be unlawful for any person to alter,
mutilate, destroy, obliterate, or remove any
mark, brand, or label upon distilled spirits,
wine, or malt beverages held for sale in
interstate or foreign commerce or after
shipment therein, except as authorized by
Federal law or except pursuant to regulations
of the Secretary of the Treasury authorizing
relabeling for purposes of compliance with
the requirements of this subsection or of
State law.
Regulations that implement these
provisions of the FAA Act, as they relate
to wine, distilled spirits, and malt
beverages, are set forth in parts 4, 5, and
7, respectively. Current §§ 4.30 and 7.20
provide that someone wanting to relabel
must receive prior written permission
from the appropriate TTB officer.
Current § 5.31 does not require prior
written approval for the relabeling of
distilled spirits, as long as such
relabeling is done in accordance with an
approved COLA.
In proposed subpart C of parts 4, 5,
and 7, TTB proposes conforming
changes to the regulations that
implement this statutory prohibition.
This subpart also sets forth the
situations in which a person must apply
for and obtain written approval prior to
relabeling.
Proposed §§ 4.41(a), 5.41(a), and
7.41(a) set forth the statutory
prohibition under 27 U.S.C. 205(e) on
the alteration of labels. The proposed
language provides that the prohibition
applies to any persons, including
retailers, holding wine for sale in (or
after shipment in) interstate or foreign
commerce.
Proposed §§ 4.41(b), 5.41(b), and
7.41(b) provide that for purposes of the
relabeling activities authorized by this
subpart, the term ‘‘relabel’’ includes the
alteration, mutilation, destruction,
obliteration, or removal of any existing
mark, brand, or label on the container,
as well as the addition of a new label
(such as a sticker that adds information
about the product or information
engraved on the container) to the
container, and the replacement of a
label with a new label bearing identical
information.
Proposed §§ 4.41(c), 5.41(c), and
7.41(c) contain new language that
provides that authorization to relabel in
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no way authorizes the placement of
labels on containers that do not
accurately reflect the brand, bottler,
identity, or other characteristics of the
product; nor does it relieve the person
conducting the relabeling operations
from any obligation to comply with the
regulations in this part and with State
or local law, or to obtain permission
from the owner of the brand where
otherwise required.
The existing regulations in parts 4 and
7 require persons wishing to relabel to
obtain written permission from TTB,
with certain exceptions, while the
regulations in part 5 require persons
wishing to relabel to obtain a COLA
from TTB. TTB believes that the
regulations in parts 4, 5 and 7 should be
updated to cover all of the situations in
which people need to relabel. The
existing regulations in part 5 allow
persons who are eligible to obtain
COLAs covering the products, such as
bottlers and importers, to relabel the
products even after they have been
removed from bottling premises or
customs custody, respectively. The
proposed rule extends this provision to
parts 4 and 7. However, the language in
existing parts 4 and 7 allows persons
who are not eligible to obtain COLAs,
such as retailers, to obtain written
permission from TTB to relabel
products that are in the marketplace
when unusual circumstances exist. The
proposed rule extends this provision to
part 5.
Accordingly, proposed §§ 4.42(a),
5.42(a), and 7.42(a) provide that
proprietors of bonded wine premises,
distilled spirits plant premises, and
breweries, respectively, may relabel
domestically bottled products prior to
their removal from, and after their
return to bond at, the bottling premises,
with labels covered by a COLA, without
obtaining separate permission from TTB
for the relabeling activity. Proposed
§§ 4.42(b), 5.42(b), and 7.42(b) provide
that proprietors of bonded wine
premises, distilled spirits plant
premises, and breweries, respectively,
may relabel domestically bottled
products after removal from the bottling
premises with labels covered by a
COLA, without obtaining separate
permission from TTB for the relabeling
activity. This would, for example, allow
a brewer to replace damaged labels on
containers that are being held at a
wholesaler’s premises, as long as the
labels are covered by a COLA, without
obtaining separate permission from TTB
to remove the existing labels and
replace them with either identical or
different approved labels.
Similarly, proposed §§ 4.42(c) and (d),
5.42(c) and (d), and 7.42(c) and (d)
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provide that, under the supervision of
U.S. customs officers, imported wine,
distilled spirits, and malt beverages,
respectively, in containers in customs
custody may be relabeled without
obtaining separate permission from TTB
for the relabeling activity. Such
containers must bear labels covered by
a COLA if and when they are removed
from customs custody for consumption.
Proposed §§ 4.43, 5.43, and 7.43 cover
relabeling activities that require separate
written authorization from TTB. It is
rare that someone other than the
original bottler or importer will need to
relabel the product, but these situations
sometimes occur. For example,
sometimes unlabeled wine containers
are transferred between bonded wine
premises. While the bottler is required
to obtain a COLA to cover these
containers prior to bottling, the
transferee, who is labeling the
containers, will sometimes want to put
additional labels on the containers. In
this case, the transferee must obtain
TTB approval to place the new labels on
the products and must be in possession
of the necessary documentation to
substantiate any new claims that will
appear on the labels.
Thus, the proposed regulations
provide that persons who are not
eligible to obtain a COLA (such as
retailers or permittees other than the
bottler) may obtain written
authorization for relabeling if the facts
show that the relabeling is for the
purpose of compliance with the
requirements of this part or of State law.
The written application must include
copies of the original and proposed new
labels; the circumstances of the request,
including the reason for relabeling; the
number of containers to be relabeled;
the location where the relabeling will
take place; and the name and address of
the person who will be conducting the
relabeling operations.
TTB is proposing to add to the malt
beverage regulations a provision that is
already found in slightly different forms
in parts 4 and 5. This provision
authorizes, without any requirement for
separate written permission from TTB,
the addition of a label identifying the
wholesaler, retailer, or consumer as long
as the label contains no reference to the
characteristics of the product, does not
violate the labeling regulations, and
does not obscure any existing labels.
The proposed regulations will
standardize this provision for wine,
distilled spirits, and malt beverages (see
proposed §§ 4.44, 5.44, and 7.44).
TTB believes that the proposed
regulations will enable permittees,
brewers, and retailers to relabel alcohol
beverage containers when there is a
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good reason to do so, while still
restricting the alteration of labels for
containers that are in the marketplace.
We seek comments from the industry on
whether the proposed regulations will
protect the integrity of labels in the
marketplace without imposing undue
burdens on the industry.
4. Subpart D—Label Standards
The current provisions governing
legibility of labels, type size, and
language requirements are found within
one section of parts 4, 5, and 7 for wine,
distilled spirits, and malt beverages,
respectively. See current §§ 4.38, 5.33,
and 7.28. Proposed subpart D includes
those and other general provisions.
These provisions are predominantly
derived from and consistent with
requirements set forth in the current
regulations.
TTB is proposing to amend the
sections that set forth legibility
requirements for the mandatory
information that is required to be placed
on labels (proposed §§ 4.52, 5.52, and
7.52). These sections are derived from
current §§ 4.38(a), 5.33(a) and (b), and
7.28(a).
The proposed regulations set forth the
requirement that mandatory information
must be ‘‘separate and apart’’ from
descriptive or explanatory information,
referred to in the proposed rule as
‘‘additional information,’’ with a few
exceptions. First, brand names are
exempt from this requirement. Second,
this provision does not preclude the
addition of brief optional phrases as part
of the class and type designation (such
as, ‘‘premium malt beverage’’), the name
and address statement (such as,
‘‘Proudly produced and bottled by ABC
Winemaking Co. in Napa, CA, for over
30 years’’), or other information
required by the regulations, as long as
the additional information does not
detract from the prominence of the
mandatory information. Finally, the
mandatory statements related to
disclosure of certain specified
ingredients (FD&C Yellow No. 5,
cochineal extract or carmine, sulfites,
and aspartame) may not include
additional information. It should be
noted that the aspartame statement, like
the health warning statement required
by part 16, must be separate and apart
from all other information.
The proposed regulations expand on
the requirement that mandatory
information must appear on a
‘‘contrasting background’’ by adding
examples of contrasting backgrounds
that would satisfy regulatory
requirements. The color of the container
and of the alcohol beverage in the
container must be taken into account if
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the label is transparent. The text also
clarifies that, with one exception (for
the required aspartame statement),
mandatory information may appear in
lower case letters, capital letters, or both
capital and lower-case letters.
The proposed rule makes changes to
current provisions pertaining to
minimum type size requirements. The
current regulations setting forth
minimum type size requirements
(current §§ 4.38(b), 5.33(b)(5), 5.33(b)(6),
and 7.28(b)) prescribe specific heights in
millimeters for mandatory information.
The height specification is dependent
on the size of the container. Among
other things, the proposed regulations
provide that the minimum type size
applies to all capital and lowercase
letters.
The proposed rule also makes changes
to current provisions pertaining to
maximum type size requirements for the
alcohol content statement for wine and
malt beverages. Current § 4.38(b)(3)
provides that the alcohol content
statement on containers of 5 liters or
less may not appear in script, type, or
printing that is more than 3 millimeters
in height. This section further provides
that the alcohol content statement on
containers of wine may not be set off
with a border or otherwise accentuated.
TTB is retaining the type size
requirement, but removing the
prohibition against accentuating the
alcohol content statement. This is in
keeping with TTB’s current policy,
which allows alcohol content
statements to be bolded.
In general, current § 7.28(b)(3)(ii)
provides that all portions of the alcohol
content statement for malt beverages
must be of the same size and kind of
lettering and of equally conspicuous
color, and not larger than 3 millimeters
for containers of 40 fluid ounces or less,
and not larger than 4 millimeters for
containers larger than 40 fluid ounces.
TTB is retaining the maximum alcohol
content type size requirements for wine
and malt beverages in §§ 4.53 and 7.53,
respectively.
TTB is proposing to add sections to
all three parts (proposed §§ 4.54, 5.54,
and 7.54) to make it explicit that
mandatory information may not be
obscured in whole or in part. This
requirement reflects current policy.
Although it certainly is a long-standing
component of ‘‘legibility,’’ TTB believes
that industry members would benefit
from the explicit statement of this
policy in the regulatory text of parts 4,
5, and 7.
TTB seeks comments on whether the
proposed changes to the placement and
legibility requirements for mandatory
information, which are intended to
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60573
provide additional flexibility to industry
members, adequately protect the
consumer by ensuring that mandatory
information on containers is readily
apparent to consumers.
In proposed §§ 4.55, 5.55, and 7.55,
TTB is proposing to amend the language
requirements that are currently found in
§§ 4.38(c), 5.33(c), and 7.28(c), to allow
all mandatory information to appear in
Spanish when products are bottled for
sale in the Commonwealth of Puerto
Rico. Consistent with the current
regulations, the proposed regulations
generally require mandatory
information, other than the brand name,
to appear in the English language. The
proposed regulations also allow for
additional statements in a foreign
language, including translations of
mandatory information that appears
elsewhere in English on the label, to
appear on labels and containers, as long
as those statements do not conflict with,
or contradict, the requirements of parts
4, 5, and 7. Finally, these sections
provide that the country of origin may
be in a language other than English
when allowed by CBP regulations.
5. Subpart E—Mandatory Label
Information
Proposed subpart E in parts 4, 5 and
7 sets forth the information that is
required to appear on alcohol beverage
labels (otherwise known as ‘‘mandatory
information’’). This subpart also
prescribes where and how mandatory
information must appear on such labels.
a. What constitutes a label. TTB is
proposing to add regulatory text to all
three parts to specify what TTB will
consider to be the ‘‘label’’ for purposes
of mandatory information. Proposed
§§ 4.61(a), 5.61(a), and 7.61(a) address
different forms that labels take (for
example, paper, plastic or film labels
affixed to the container; information
etched, engraved, sandblasted, or
otherwise carved into the surface of the
container; and information branded,
stenciled, painted, printed, or otherwise
directly applied to the surface of the
container). For purposes of the net
contents statement and the name and
address statement only, the term ‘‘label’’
includes information blown, embossed,
or molded into the container as part of
the process of manufacturing the
container.
Proposed §§ 4.61(b), 5.61(b), and
7.61(b) clarify that placement of
information on certain parts of alcohol
beverage containers (such as the bottom
of the container, caps, corks, or other
closures [unless authorized to bear
mandatory information by the
appropriate TTB officer], and foil or
heat shrink capsules) will not meet the
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requirements for mandatory information
that must appear on labels. This
provision is intended to take into
account unique types of containers,
such as pudding or gelatin-type cups,
where the mandatory information is
sometimes authorized to appear on the
top of the container. Information on
these parts of the container are still
subject to the restrictions and
prohibitions set forth in proposed
subparts F, G and H of parts 4, 5,
and 7.
Proposed §§ 4.61(c), 5.61(c), and
7.61(c) further clarify longstanding
policy that any materials that
accompany the container to the
consumer but are not firmly affixed to
the container, including booklets,
leaflets, and hang tags, are not ‘‘labels’’
for purposes of proposed parts 4, 5, and
7. Such materials are instead subject to
the advertising regulations in proposed
new part 14 of the TTB regulations. This
is a clarifying change for parts 4 and 5,
consistent with the intent of T.D. ATF–
180 (49 FR 31667, August 8, 1984),
which explained in its preamble that
‘‘[l]abels must be firmly affixed to the
container, hang tags are usually tied or
slipped over the neck of the bottle.
Therefore, when other matter
accompanies the container and is not
firmly affixed as a label, such matter is
advertising material and must bear the
mandatory statements.’’
b. Packaging (including cartons,
coverings, and cases). Current
regulations in §§ 4.38a and 5.41 set out
rules for the placement of information
on bottle cartons, booklets, and leaflets.
Briefly, these regulations provide that
individual coverings, cartons, or other
containers of the bottle used for sale at
retail (that is, other than a shipping
container), as well as any written,
printed, graphic, or other matter
accompanying the bottle to the
consumer shall not contain any
statement, design, device or graphic,
pictorial, or emblematic representation
prohibited by the labeling regulations.
The current regulations also require
the placement of mandatory label
information on sealed opaque coverings,
cartons, or other containers used for sale
at retail (but not shipping containers).
Coverings, cartons, or other containers
of the bottle used for sale at retail that
are designed so that the bottle is easily
removable may display any information
that is not in conflict with the label on
the bottle contained therein. However,
any brand names or designations must
be displayed in their entirety, with any
required modifications and/or
statements of composition.
Thus, the prohibited practices for
labeling set forth in existing §§ 4.39(a)
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and 5.42(a) apply to bottles, labels on
bottles, any individual covering, carton,
or other container of such bottles used
for sale at retail, and any written,
printed, graphic, or other matter
accompanying such bottles to the
consumer. Yet, the advertising
regulations in existing §§ 4.61 and 5.62
define the term ‘‘advertisement,’’ in
pertinent part, as including any written
or verbal statement, illustration, or
depiction, whether it appears in ‘‘a
newspaper, magazine, trade booklet,
menu, wine card, leaflet, circular,
mailer, book insert, catalog, promotional
material, sales pamphlet, or in any
written, printed, graphic, or other matter
accompanying the [container] bottle,’’
but excluding ‘‘[a]ny label affixed to any
[container] bottle * * * or any
individual covering, carton, or other
[wrapper of such container] [container
of the bottle] which constitutes a part of
the labeling’’ under the labeling
regulations.
The current labeling regulations in
part 7 do not include regulations similar
to current §§ 4.38a and 5.41. However,
as set forth at current § 7.29(a) and (h),
the prohibited practices in the labeling
regulations for malt beverages apply to
containers, any labels on such
containers, or any cartons, cases, or
individual coverings of such containers
used for sale at retail, as well as to any
written, printed, graphic, or other
material accompanying malt beverage
containers to the consumer. The current
advertising regulations in part 7, like the
advertising regulations in parts 4 and 5,
define the term ‘‘advertisement’’ (in
current § 7.51) to include, in pertinent
part, any written or verbal statement,
illustration, or depiction, whether it
appears in ‘‘a newspaper, magazine,
trade booklet, menu, wine card, leaflet,
circular, mailer, book insert, catalog,
promotional material, sales pamphlet, or
in any written, printed, graphic or other
matter accompanying the container,
representations made on cases * * * or
in any other media;’’ but excluding any
‘‘label affixed to any container of malt
beverages; or any coverings, cartons, or
cases of containers of malt beverages
used for sale at retail which constitute
a part of the labeling’’ under the labeling
regulations.
TTB believes that the existing
regulations create some confusion as to
when a case or hang tag constitutes
labeling and when it constitutes
advertising. Accordingly, TTB is
proposing identical regulations in
proposed §§ 4.62, 5.62, and 7.62 to
address packaging. The proposed
regulations provide, consistent with
existing regulations in parts 4, 5 and 7,
that packaging may not include any
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statements or representations prohibited
by the labeling regulations from
appearing on containers or labels. The
proposed regulations also provide,
consistent with existing regulations in
parts 4 and 5 but as a new requirement
for part 7, that closed packaging,
including sealed opaque coverings,
cartons, cases, carriers, or other
packaging used for sale at retail, must
include all mandatory information
required to appear on the label.
Furthermore, the proposed
regulations provide greater clarity than
the current provisions about when
packaging is considered closed.
Proposed §§ 4.62, 5.62, and 7.62 provide
that packaging is considered closed if
the consumer must open, rip, untie,
unzip, or otherwise manipulate the
package to remove the container in
order to view any of the mandatory
information. Packaging is not
considered closed if a consumer could
view all of the mandatory information
on the container by merely lifting the
container up, or if the packaging is
transparent or designed in a way that all
of the mandatory information can easily
be read by the consumer without having
to open, rip, untie, unzip, or otherwise
manipulate the package. TTB seeks
comment on whether TTB should
require mandatory or dispelling
information to appear on open
packaging when part of the label is
obscured.
TTB solicits comments on whether
the proposed rules will require
significant change to labels, containers,
or packaging materials. We also solicit
comments on whether the proposed
revisions will provide better
information to the consumer and make
it easier to find mandatory information
on labels, containers, and packages.
c. Placement rules. Mandatory
information includes the brand name,
the class and type designation, alcohol
content, net contents, name and address
of the responsible party (such as the
producer, bottler, or importer), and
disclosure of certain ingredients and
processes. The current regulations have
placement requirements for mandatory
information––some mandatory
information must appear on the ‘‘brand
label,’’ and other mandatory information
may appear on any label. The
regulations in parts 4 and 7 define the
brand label as the label carrying, in the
usual distinctive design, the brand
name. The regulations in part 5 define
the brand label, in part, 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
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side of the bottle as the principal
display panel.
TTB proposes to provide more
flexibility in the placement of the
mandatory information for wine,
distilled spirits, and malt beverages by
eliminating the concept of a defined
‘‘brand label.’’ The specific proposals
for locating mandatory information on
labels for each commodity will be
included in the commodity-specific
discussions later in the preamble.
Where placement requirements exist,
the proposed rule provides more
specific terminology. Instead of
requiring mandatory information to be
in ‘‘direct conjunction’’ with other
mandatory information, the proposed
regulations clarify when such
information must be immediately
adjacent to other information, and when
it may be in the same field of vision as
other information.
d. Brand name. Proposed §§ 4.64,
5.64, and 7.64 set forth requirements for
brand names of wine, distilled spirits,
and malt beverages, respectively. Most
of the provisions in these sections are
commodity specific and are therefore
discussed individually later in this
document.
However, one proposed change is
made in all three parts: TTB is
proposing to remove a provision for the
continued use of certain trade names of
foreign origin that had been used for at
least five years immediately preceding
August 29, 1935 (the date the FAA Act
was enacted). Although the law still
authorizes the use of these names, TTB
believes that there is no need to retain
this provision in the regulations, given
that it refers to names that have been
used for more than 85 years.
e. Name and address for domestically
bottled products. In the regulations on
the name and address of bottlers and
producers of wine, distilled spirits, and
malt beverages, TTB is making editorial
changes to existing requirements.
As previously mentioned, the FAA
Act provides that wine, distilled spirits,
and malt beverage labels must contain
certain mandatory information,
including the name of the manufacturer,
bottler, or importer of the product. See
27 U.S.C. 205(e)(2). The regulations for
distilled spirits and malt beverage labels
currently provide more flexibility than
the regulations for wine labels. Most
importantly, wine labels must show the
name of the bottler and the place where
bottled, while bottlers of distilled spirits
and malt beverages have the flexibility
to list either the place of bottling, every
location at which the same industry
member bottles the product, or, under
certain circumstances, the principal
place of business of the industry
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member that is bottling the product.
Bottlers of distilled spirits or malt
beverages that utilize one of the latter
two options must mark the labels using
a coding system that enables the bottler
and TTB to trace the actual place of
bottling of each container. This both
protects the revenue and allows for the
tracing of containers in the event of an
adulteration issue.
TTB is aware that, with the growing
number of craft brewers and craft
distillers in the marketplace, there may
be more interest among consumers as to
where malt beverages are brewed and
where distilled spirits are distilled. On
the other hand, TTB also wishes to
provide industry members with
flexibility in their labeling statements,
to accommodate the growing number of
arrangements where products are
produced or bottled pursuant to
contractual arrangements. One of the
major reasons for allowing the use of
principal places of business and
multiple addresses on labels is to allow
industry members to use a single label
for their products rather than having to
seek approval of multiple labels. TTB
notes that, under both the existing and
proposed regulations, industry members
are always free to include optional
statements that provide consumers with
more information about their
production and bottling processes if
they wish.
TTB seeks comments from all
interested parties, including industry
members and consumers, on whether
the proposed labeling requirements
provide adequate information to the
consumer while avoiding undue
burdens on industry members. TTB also
seeks comments on whether the
standards for wine labels should
continue to require specific information
about the place where production and/
or bottling operations occurred.
f. Name and address for imported
alcohol beverages. The name and
address inform the consumer of the
identity of the importer of the alcohol
beverage product and the location of the
importer’s principal place of business.
The current regulations at § 4.35(b),
5.36(b), and 7.25(b) provide that, on
labels of imported wines, distilled
spirits and malt beverages, respectively,
the words ‘‘imported by,’’ or a similar
appropriate phrase, must be stated,
followed immediately by the name of
the permittee who is the importer, or
exclusive agent, or sole distributor, or
other person responsible for the
importation, together with the principal
place of business in the United States of
such person.
Like the current regulations, the
proposed regulations in §§ 4.68, 5.68,
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60575
and 7.68 require the name and address
of the importer when the product is
imported in containers. The proposed
regulations clarify that for purposes of
these sections, the importer is the
holder of an importer’s basic permit
making the original Customs entry into
the United States, or is the person for
whom such entry is made, or the holder
of an importer’s basic permit who is the
agent, distributor, or franchise holder
for the particular brand of imported
alcohol beverages and who places the
order abroad. These provisions mirror
the policy set forth in Revenue Ruling
71–535 with regard to the name and
address requirements applicable to
importers, and the ruling will be
superseded by the proposed rule.
Proposed §§ 4.67, 5.67, and 7.67
address the labeling of products bottled
after importation. If the product is
bottled after importation in bulk, by or
for the importer thereof, the proposed
rules require an ‘‘imported and bottled
by’’ or ‘‘imported by and bottled for’’
statement, as appropriate.
The proposed regulations in §§ 4.67,
5.67, and 7.67 specifically address the
name and address requirements
applicable to wine, distilled spirits, and
malt beverages that are imported in bulk
and then subject to further production
or blending activities in the United
States.
In section 1421 of the Taxpayer Relief
Act of 1997, Public Law 105–34,
Congress enacted a new provision in the
IRC which permits the transfer of beer
in bulk containers from customs
custody to internal revenue bond at a
brewery. After transfer to internal
revenue bond at a brewery, imported
beer may be bottled or packed without
change or with only the addition of
water and carbon dioxide, or may be
blended with domestic or other
imported beer and bottled or packed.
In ATF Procedure 98–1, TTB’s
predecessor agency provided guidance
to brewers and bottlers for the labeling
of imported malt beverages bottled in
the United States. This guidance was
necessary because the existing
regulations in part 7 do not address the
labeling of imported malt beverages that
are bottled in the United States, or the
labeling of imported malt beverages that
are blended with other imported malt
beverages or with domestic malt
beverages, and then bottled or packed in
the United States.
Section 1422 of The Taxpayer Relief
Act of 1997 amended 26 U.S.C 5364 to
allow the importation of wine in bulk to
bonded wine premises; the law was
amended the following year by Public
Law 105–206 to restrict this privilege to
natural wine. However, even prior to
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this amendment, imported taxpaid wine
could be brought onto taxpaid wine
premises and bottled in the United
States. Thus, the regulations in part 4
already provide for the labeling of wine
bottled after importation. However, the
current regulations do not reflect the
fact that wine may be subjected to
production activities in the United
States after importation in bulk. ATF
Procedure 98–3 provided some
guidance on this issue.
Similarly, the current regulations in
part 5 provide for the labeling of
distilled spirits bottled after
importation, but do not provide rules
concerning the labeling of spirits that
were subject to production activities in
the United States after importation.
Thus, proposed §§ 4.67, 5.67, and 7.67
provide rules for the labeling of wine,
distilled spirits, and malt beverages that
are imported in bulk and are then
blended with wine, distilled spirits, or
malt beverages, respectively, of a
different country of origin, or subjected
to production activities in the United
States that would alter the class or type
of the product. The proposed rules
provide that such products must be
labeled with a ‘‘bottled by’’ statement,
rather than an ‘‘imported by’’ statement.
ATF Procedure 98–1 would be
superseded by the proposed rule,
because its provisions on the labeling of
malt beverages imported in bulk will be
incorporated, with modifications, into
the name and address regulations found
in proposed § 7.67.
As further discussed in the next
section of this preamble, industry
members should note that pursuant to
CBP regulations at 19 CFR parts 102 and
134, imported alcohol beverages that are
further processed in the United States,
or that are blended with domestic
alcohol beverages in the United States,
may be subject to a country of origin
marking requirement, even when the
class or type of the product has been
altered in the United States. See ATF
Ruling 2001–2.
g. Country of origin. Current
regulations require a country of origin
statement on labels of imported distilled
spirits, but include no such requirement
for imported wine or malt beverages.
Nonetheless, U.S. Customs and Border
Protection (CBP) regulations require a
country of origin statement to appear on
containers of all imported alcohol
beverages, including alcohol beverages
that are imported in bulk and then
subjected to certain production
activities or bottling in the United States
if, pursuant to CBP regulations, the
beverage is the product of a country
other than the United States.
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The existing distilled spirits
regulations in § 5.36(e) provide as
follows: ‘‘On labels of imported distilled
spirits there shall be stated the country
of origin in substantially the following
form ‘‘Product of ll’’, the blank to be
filled in with the name of the country
of origin.’’ TTB’s predecessor agency,
ATF, was asked to clarify this
requirement as applied to products that
consist of blends of spirits produced in
more than one country, including
mixtures of foreign and domestic spirits.
ATF determined that when the country
of origin regulation in Part 5 was
originally written, the agency did not
contemplate that bottlers would blend
imported and domestic spirits. When
written, the regulations assumed that
imported spirits would be bottled using
100 percent imported spirits.
Accordingly, ATF issued ATF Ruling
2001–2 to provide that country of origin
statements under the regulations in part
5 must comply with applicable CBP
requirements.
In ATF Ruling 2001–2, ATF
concluded that its country of origin
requirements under § 5.36(e) will be
interpreted in a manner consistent with
CBP’s rules of origin, noting that
issuance of separate ATF regulations
might lead to inconsistencies between
CBP and ATF rules and result in
confusion for the industries affected by
those rules. Accordingly, the ruling held
that for an imported distilled spirit that
is wholly the product of a single
country, the country of origin will be
stated in substantially the following
form, ‘‘Product of ll.’’ It further held
that ‘‘substantially the following form’’
meant that the distilled spirit may, in
the alternative, be labeled in conformity
with CBP country of origin marking
requirements. For a product composed
of spirits produced in more than one
country, including mixtures of foreign
and domestic spirits, ATF held that the
regulation would be satisfied if the
country of origin was determined and
marked in accordance with CBP
regulations. The ruling also noted that
an industry member could seek a ruling
from Customs for a determination of the
country of origin for its product.
TTB is proposing to amend § 5.69,
and to add new §§ 4.69 and 7.69, to
clarify the relationship between TTB
and CBP regulations on this issue. As
noted, ATF stated in ATF Ruling 2001–
2 that issuance of separate ATF
regulations on the country of origin
issue might lead to inconsistencies
between CBP and ATF rules and result
in confusion for the industries affected
by those rules. TTB shares the concerns
expressed by its predecessor agency on
this issue. Accordingly, the proposed
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§§ 4.69, 5.69 and 7.69 simply contain a
cross-reference to the CBP regulations at
19 CFR parts 102 and 134 regarding
country of origin statements, rather than
independently requiring a country of
origin statement under TTB regulations.
The proposed regulations also provide
that ‘‘[l]abeling statements with regard
to the country of origin must be
consistent with CBP regulations.’’
Finally, proposed §§ 4.69 and 7.69, as
well as proposed § 5.69, provide that the
determination of the country (or
countries) of origin, for imported wines,
malt beverages, and distilled spirits,
respectively, as well as for blends of
imported products with domestically
produced beverages, must comply with
CBP regulations.
While this is a new provision in the
wine and malt beverage regulations, it
will not impose any labeling changes, as
it simply references an existing
requirement found in CBP regulations.
However, TTB believes that the
proposed regulation will remind
industry members who import alcohol
beverages in bulk for processing or
bottling in the United States that they
must place a country of origin statement
on the labels where required to do so by
CBP regulations.
As discussed earlier in this preamble,
industry members should note that
pursuant to CBP regulations at 19 CFR
parts 102 and 134, imported alcohol
beverages that are further processed in
the United States, or that are blended
with domestic alcohol beverages in the
United States, may nonetheless be
subject to a country of origin marking
requirement, even if the class or type of
the product has been altered in the
United States. See ATF Ruling 2001–2.
When TTB issues COLAs for distilled
spirits, wine, or malt beverage
containers that do (or do not) include a
country of origin statement, it is not
making a factual or legal determination
of whether such a statement is
necessary, or whether a labeled country
of origin would comply with either TTB
or CBP rules. In fact, the application for
label approval typically does not
include the information that would be
necessary to make such a determination.
It is the responsibility of the industry
member to ensure compliance with the
country of origin marking requirement,
both when alcohol beverages are
imported in containers and when
imported alcohol beverages are subject
to bottling, blending, or production
activities in the United States. Industry
members may seek a ruling from CBP
for a determination of the country of
origin for their product.
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6. Subparts F, G, and H—Statements
That Are Restricted, Prohibited, or
Prohibited if Misleading
The current regulations include a
single section titled ‘‘Prohibited
Practices’’ that sets forth a number of
prohibited practices and also describes
certain labeling practices that are
regulated in various ways. In order to
make regulatory provisions easier to
find, and to improve readability, TTB
proposes to divide the regulations
addressing prohibited practices into
three subparts: (1) Subpart F, practices
that may be used under certain
conditions, (2) subpart G, practices that
are always prohibited, and (3) subpart
H, practices that are prohibited only if
they are used in a misleading manner on
labels.
Proposed subparts F, G and H each
contain language to clarify that the
prohibitions in these subparts apply to
any label, container, or packaging, and
define those terms as used in these
subparts. Specifically, for purposes of
proposed subparts F, G, and H, the term
‘‘label’’ includes all labels on alcohol
beverage containers on which
mandatory information may appear, as
set forth in proposed §§ 4.61, 5.61, and
7.61, as well as any other label on the
container. These proposed sections also
set out the parts of the container on
which mandatory information may
appear.
The proposed text defines
‘‘packaging’’ for purposes of proposed
subparts F, G, and H, as any carton,
case, carrier, individual covering or
other packaging of such containers used
for sale at retail, but does not include
shipping cartons or cases that are not
intended to accompany the container to
the consumer. The proposed rule also
provides that the term ‘‘statement or
representation’’ as used in those
subparts, includes any statement,
design, device, or representation, and
includes pictorial or graphic designs or
representations as well as written ones.
It also includes both explicit and
implicit statements and representations.
This provision avoids the need to repeat
the reference to each type of statement
or representation in every section in
these subparts.
7. Subpart F—Restricted Labeling
Statements
TTB is proposing a new section (see
proposed §§ 4.85, 5.85, and 7.85) on the
use of statements relating to
environmental and sustainability
practices, which reflects current TTB
policy. The proposed rule allows
statements related to environmental or
sustainable agricultural practices, social
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justice principles, and other similar
statements (such as, ‘‘Produced using
100% solar energy’’ or ‘‘Carbon
Neutral’’) to appear on labels as long as
the statements are truthful, specific and
not misleading. Statements or logos
indicating environmental, sustainable
agricultural, or social justice
certification (such as, ‘‘Biodyvin,’’
‘‘Salmon-Safe,’’ or ‘‘Fair Trade
Certified’’) may appear on labels of
products that are actually certified by
the appropriate organization.
8. Subpart G—Prohibited Labeling
Practices
Subpart G sets forth the prohibited
labeling practices. The proposed rule
provides that the prohibitions set forth
in this subpart apply to any label,
container, or packaging, and then sets
out the definitions of those terms for
purposes of this subpart. The prohibited
practices include false statements and
obscene or indecent depictions. The
proposed rule restates and reorganizes
prohibitions currently found in the TTB
regulations.
9. Subpart H—Labeling Practices That
Are Prohibited if They Are Misleading
Proposed subpart H sets out the
general prohibition against any
statement or representation, irrespective
of falsity, that is misleading to
consumers as to the age, origin, identity,
or other characteristics of the wine,
distilled spirits, or malt beverages, or
with regard to any other material factor.
It also sets out different ways in which
statements may be misleading. For
example, an otherwise truthful
statement may be misleading because of
the omission of material information,
the disclosure of which is necessary to
prevent the statement from being
misleading. This is not a new policy,
but the proposed rule sets it out more
clearly (see proposed §§ 4.122, 5.122,
and 7.122).
TTB proposes to cancel Rev. Ruling
55–618, which deals with the use of the
terms ‘‘kosher’’ and ‘‘altar’’ on wines.
TTB believes that it should not restrict
the approval of products labeled as
‘‘altar wine’’ to products to be sold only
to religious organizations, as the ruling
required, and proposes to eliminate that
provision of the ruling. Additionally,
the use of the terms ‘‘altar-type’’ or
‘‘altar-style’’ wine are not prohibited
from appearing on alcohol beverage
products because there is no reasonable
basis for protecting the terms. However,
the terms ‘‘kosher style’’ and ‘‘kosher
type’’ will remain restricted to only
kosher wines because the use of such
terms on non-kosher wines would be
misleading. TTB does not propose
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specific regulations implementing the
restriction, but believes it is covered by
the general prohibition on misleading
statements.
a. Guarantees. Proposed §§ 4.123,
5.123 and 7.123 prohibit the use of
guarantees that are likely to mislead the
consumer. Money-back guarantees are
not prohibited. This is a restatement of
existing policy currently found in
§§ 4.39(a)(5), 5.42(a)(5), and 7.39(a)(5),
with minor modifications for clarity.
b. Disparaging statements. Proposed
§§ 4.124, 5.124 and 7.124 specifically
prohibit the use of false or misleading
statements that explicitly or implicitly
disparage a competitor’s product. This
proposed revision reflects the
longstanding ATF and TTB policy (as
expressed in T.D. ATF–180, 49 FR
31667, August 8, 1984) that a
competitor’s product is disparaged
when statements or claims about the
product, or relating to the product, are
false or would tend to mislead the
consumer. This policy does not
preclude additional information such as
‘‘puffery’’ statements made about one’s
own product, nor does it prohibit
truthful, nonmisleading comparative
statements or claims that place the
competitor’s product in an unfavorable
light.
In the proposed regulatory text, TTB
also introduces examples of statements
that would be prohibited under this
provision. A statement of opinion such
as ‘‘We think our [product] tastes better
than any other [product] on the market’’
is not prohibited. However, a statement
such as ‘‘We do not add arsenic to our
[product]’’, although truthful, would be
considered to be disparaging because it
falsely implies that other producers do
add arsenic to their products.
Furthermore, labels may not include
statements that disparage their
competitor’s products by making
specific allegations, such as ‘‘Brand X is
not aged in oak barrels,’’ when such
statements are untrue.
c. Tests or analyses. Proposed
§§ 4.125, 5.125 and 7.125 prohibit
statements or representations of, or
relating to, analyses, standards, or tests,
whether or not truthful, that are likely
to mislead the consumer. These
proposed provisions incorporate current
policy, but also provide new examples
of such a misleading statement,
designed to illustrate the principle that
a truthful statement about a test or
standard may nonetheless be
misleading.
d. Depictions of government symbols.
Currently, representations relating to the
American flag or the U.S. armed forces
are prohibited from appearing on
alcohol beverage labels in order to
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prevent misconceptions that the alcohol
beverage is endorsed or otherwise
supervised by the U.S. government or
the armed forces. However, the
regulations prohibit the use of flags from
other countries only where it would be
misleading. The regulations on U.S. and
foreign flags are based on the same
statutory provision of the FAA Act at 27
U.S.C. 205(e)(5) that prohibits deception
of the consumer by use of a name or
representation of individuals or
organizations when such use creates a
misleading impression of endorsement.
Consistent with the statutory
prohibition on which these regulations
are based, it is TTB’s current policy to
enforce this regulatory prohibition only
where such representations might tend
to mislead consumers. Thus, TTB is
proposing to amend the regulations to
remove the blanket prohibition against
the use of representations of, or relating
to, the American flag, the armed forces
of the United States, or other symbols
associated with the American flag or
armed forces. Instead, proposed
§§ 4.126, 5.126, and 7.126 retain the
prohibition against the use of such
symbols or images where they create the
impression that there was some sort of
endorsement by, or affiliation with, the
governmental entity represented.
Furthermore, each of these proposed
sections specifically provides that the
section does not prohibit the use of a
flag as part of a claim of American
origin or another country of origin.
e. Depictions simulating government
stamps or relating to supervision.
Proposed §§ 4.127, 5.127, and 7.127
retain prohibitions against depictions
simulating government stamps or
relating to government supervision but
provide that these representations are
only prohibited if misleading. TTB
solicits comments on whether there is
still a need for regulations on this issue.
f. Cross-category terms on labels of
wine, distilled spirits, and malt
beverages. In proposed §§ 4.128, 5.128,
and 7.128, TTB proposes to adopt a new
prohibition on the misleading use of
cross-commodity terms. Terms used to
designate the class and type of wine,
distilled spirits, and malt beverages are
unique to each commodity. More and
more frequently, TTB receives
applications for approval of a label for
one commodity where the label bears a
term normally associated with a
different commodity.
For malt beverage products, the
current TTB regulations at § 7.29(a)(7)
prohibit a label from containing any
statement, design, device, or
representation that tends to create a
false or misleading impression that the
malt beverage contains distilled spirits
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or is a distilled spirits product. (See also
27 CFR 4.39(a)(7), which prohibits
misleading statements on wine that
create the impression that the wine
contains distilled spirits. This
prohibition does not apply to truthful
statements of composition.) While the
current regulations do not prohibit the
use of wine terms on malt beverage
labels or the use of wine or malt
beverage terms on distilled spirits
labels, TTB believes that the use of
terms normally associated with one
commodity may be misleading if used
on a product of a different commodity.
For example, if a term that is a class
or type designation for wine is used on
a malt beverage label as the brand name
or as a distinctive or fanciful name, or
is placed on the label in an otherwise
prominent position, the label may create
the misleading impression that the malt
beverage is produced with the addition
of wine. As a result, TTB has denied
approval of labels bearing such terms
when it has determined that the labels
were misleading. This denial is
authorized under TTB’s general
authority to prohibit misleading
information on labels, which is codified
at current §§ 4.39(a), 5.42(a), and
7.29(a). However, in other cases, TTB
has determined that references to other
commodities on labels do not mislead
consumers as to the identity of the
product. The determination of whether
the reference is misleading depends on
the overall label, and how the
information is presented.
TTB believes that, in order to deal
with this issue consistently, the
regulations should set forth specific
rules about the use of defined terms for
one commodity on labels of another
commodity. Accordingly, TTB is
proposing to amend the regulations to
specifically provide that no label,
container, or packaging may contain a
statement, design, or device that tends
to create the false or misleading
impression that the product is, or
contains, a different commodity.
Furthermore, the proposed regulations
prohibit class or type designations (or
any homophones or coined words that
simulate or imitate a class or type
designation) that are set forth in the TTB
regulations for one commodity from
appearing on a label for a product of a
different commodity, if such
representation creates a misleading
impression about the identity of the
product.
Consistent with past practice, the
proposed regulation does not prohibit a
truthful and accurate statement of
alcohol content. Similarly, it does not
prohibit the use of a brand name of a
different commodity, provided that the
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overall label or advertisement does not
create a misleading impression about
the identity of the product. The
proposed rule continues to allow the
use of cocktail names as brand names or
distinctive or fanciful names, provided
that the overall label or advertisement
does not create a misleading impression
about the identity of the product.
The proposed rule does not prohibit
the use of truthful and accurate
statements about the production of the
product, as part of a statement of
composition or otherwise, such as ‘‘aged
in whisky barrels’’ for a malt beverage
or wine, so long as such statements do
not create a misleading impression as to
the identity of the product. Consistent
with TTB Ruling 2014–4, while
statements about aging malt beverages
in barrels previously used in the
production or storage of distilled spirits
or wine are not prohibited, statements
that imply that the product contains
distilled spirits (such as ‘‘bourbon
flavored beer’’) are prohibited as
misleading.
Finally, TTB proposes to continue to
allow the use of terms that compare a
product or products of one commodity
to a product or products of a different
commodity (such as, ‘‘This wine doesn’t
have the hoppy taste of beer’’) without
creating a misleading impression as to
the identity of the product.
TTB solicits comments on whether
the proposed prohibition and the
proposed exceptions to the prohibition
will adequately protect the consumer
and whether the proposed regulations
will require changes to existing labels.
TTB particularly solicits comments on
whether the use of coined terms and
homophones in brand names and
elsewhere on the labels is misleading to
consumers when those terms imply
similarity to class and type designations
to which a product is not entitled.
g. Appearance of endorsement. The
current regulations prohibit the use of
the name of a living person or existing
private or public organization if the use
of that name or a representation
misleads the consumer to believe that
the product has been endorsed, made, or
used by, or produced for, or under the
supervision of, or in accordance with
the specifications of, such individual or
organization. TTB proposes, in §§ 4.130,
5.130, and 7.130, to maintain that rule,
but to make more clear that actual
endorsements are permitted and that
TTB may request documentation
supporting the claim of endorsement at
the time the application for label
approval is submitted or at a later time.
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10. Subpart I—Classifications
Subpart I in parts 4, 5, and 7 sets forth
rules for the classification of wine,
distilled spirits, and malt beverages,
respectively. As noted earlier in this
document, wine, distilled spirits, and
malt beverages are organized into
general classes and, within the classes,
more specific types. These classes and
types, in the case of wine and distilled
spirits, have specific standards listed in
the regulations; these are known as
‘‘standards of identity.’’ For malt
beverages, the class and type
designations are based on designations
of products as known to the trade. The
specific classification rules and the
changes TTB proposes to make to these
rules will be discussed below in the
part-specific sections of this document.
11. Subpart K for Parts 4 and 5,
Standards of Fill
In subpart K of parts 4 and 5, TTB
maintains the current requirements for
specified standards of fill (see §§ 4.202
and 5.202). (TTB plans to propose
changes to the standards of fill in a
separate rulemaking document.)
Additionally, TTB proposes to codify its
existing policies regarding aggregate
packaging.
a. TTB’s Current Regulations on
Standards of Fill. TTB administers
regulations setting forth container size
and related standards of fill for
containers of distilled spirits and wine
distributed within the United States.
(There are no standard of fill
requirements for malt beverages.) The
standards of fill appear in the current
regulations in § 4.72 for wine, and
§§ 5.47 and 5.47a for distilled spirits.
Containers conforming to a standard of
fill of, for example, 750 mL—which is
a standard of fill prescribed by current
regulations for both wine and distilled
spirits—must have a net contents of 750
mL of that product.
b. Aggregate Packaging to Meet a
Standard of Fill. In 1988, TTB’s
predecessor agency started permitting
bottlers and importers of wine and
distilled spirits products to use
containers that did not meet a standard
of fill provided that the non-standard of
fill containers were banded or wrapped
together and sold as a single wine or
distilled spirits product that, in total,
met an approved standard of fill. For
example, a wine or distilled spirits
product sold in a package of thirty 25
mL containers to meet an authorized
standard of fill of 750 mL would be an
aggregate package under this policy.
While this type of aggregate packaging
has been permitted for some time, TTB’s
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policy has not yet been codified in the
regulations.
In Notice No. 872, published in the
Federal Register (64 FR 6485) on
February 9, 1999, ATF proposed to
codify standards on this issue.
According to the preamble of this
NPRM, the issue of whether standard of
fill requirements may be satisfied by
aggregate packaging was first raised in
1988, when an importer sought
permission to import bags containing 25
individual 15-mL packages of alcohol
beverage for a total of 375 mL, an
authorized standard of fill. The request
was approved, as were subsequent
requests for other types of containers,
such as distilled spirits products
packaged in packs of thirty 25-mL test
tubes to meet an authorized standard of
fill of 750 mL.
In the NPRM, ATF stated that it was
concerned that the wide array of
container types and packaging coming
onto the market—including, but not
limited to, aggregate packaging—would
have a number of adverse impacts
including: (1) Confusing consumers as
to the quantity and nature of the alcohol
beverage; (2) contributing to
administrative difficulty in determining
appropriate excise tax for the products;
(3) making aggregate fill products more
easily obtainable by underage
individuals; and (4) creating problems
with State and local alcohol beverage
controls, either by conflicting with State
standard of fill provisions or with
prohibitions against open containers of
alcohol beverages. Accordingly, the
NPRM proposed regulations prohibiting
the use of aggregate packaging to meet
standard of fill requirements.
ATF received approximately 100
comments on the NPRM, with 40
percent of the comments against the
proposed regulations and 60 percent
favoring them. Comments against the
proposed regulations came from the
alcohol beverage industry and related
industries, such as packaging
manufacturers; although one alcohol
beverage producer supported the
proposed regulations. Comments from
industry regarding aggregate packaging
mainly contended that the issue could
be addressed with labeling requirements
and that limiting package sizes was an
unnecessary overreach by ATF.
Comments on the aggregate packaging
aspect of the proposed regulations came
mostly from companies that were
already using aggregate packaging to
meet standard of fill requirements.
However, most of the comments against
the proposed regulations were not
addressed to aggregate packaging, but to
another aspect of the NPRM, which
proposed regulations relating to
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packaging that appeared similar to
packaging for non-alcohol products. The
comments in favor of the proposed
regulations came from consumers,
parents, substance abuse agencies and
consumer advocacy organizations, and
were mostly general statements of
support for the proposed regulations
that did not specify which aspect of the
NPRM (aggregate packaging or
packaging types) they supported.
The regulations proposed in Notice
No. 872 to prohibit aggregate packaging
to meet the authorized standards of fill
were not finalized, and the practice of
aggregate packaging continues today.
ATF encouraged the industry to adopt a
number of safeguards to protect against
consumer deception in the event that
aggregate packages were broken apart
and the single-serving packages sold
individually. These safeguards included
labeling the individual containers as
‘‘not for individual sale’’ and ‘‘not for
children,’’ sealing the outer container
with shrink wrap or other secure
methods, and encouraging bottlers to
bottle the individual units of the
package in authorized standards of fill
(for example, in 50-mL units). TTB
continues to allow aggregate packaging
under the following conditions:
• The applicant submits to TTB,
along with the application for label
approval, a sample of the actual external
container and a sample of one of the
smaller internal containers.
• The external container, as well as
each of the smaller internal containers,
is labeled with all of the mandatory
information required by parts 4 and 24
for wine and parts 5 and 19 for distilled
spirits, as well as the health warning
statement required by part 16.
• The external container is shrinkwrapped, boxed, or sealed in such a
manner that the smaller internal
containers cannot be easily removed.
• Each of the smaller internal
containers is labeled ‘‘NOT FOR
INDIVIDUAL SALE.’’
• The external container bears a
statement of total net contents that
clearly shows how the contents of the
individual packages added together are
equivalent to one of the authorized
standards of fill. (For example, 750 mL
= 30 containers of 25 mL each.)
In recent years, TTB’s policy
regarding aggregate packaging has
shifted to allow for non-standard of fill
containers to be packaged together even
when those containers do not hold the
same product. For example, products of
differing standards of identity and
differing alcohol contents have been
permitted to be packaged together as
one product. TTB has reevaluated this
shift in policy and has determined that
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it is inconsistent with the original intent
of the aggregate packaging policy, which
was to allow one product to be bottled
in non-standard of fill containers that
would be banded together so that the
sum of the identical parts would equal
a standard of fill for that product.
c. Proposed Regulatory Amendment.
The regulations proposed in this
rulemaking document provide for
aggregate packaging subject to the
conditions set forth above and with the
additional requirements that the wine or
distilled spirits packaged in the
individual non-standard of fill
containers within an aggregate package
must all be of the same class and type,
alcohol content, and tax class. This is a
narrowing of the current policy that
allows for wines and distilled spirits of
differing classes, types, and alcohol
contents to be packaged together. TTB
believes that this narrowing of the
policy is necessary to maintain the
original intent of standards of fill
requirements, reduce consumer
confusion when comparing products,
and reduce administrative burden when
calculating the tax liability of an
aggregately packaged wine or distilled
spirits product. The proposed
provisions related to aggregate
packaging appear in §§ 4.204 and 5.204.
If each internal container already
complies with an authorized standard of
fill, then the aggregate standard of fill
conditions would not apply, and the
internal containers would each be
subject to label approval. The outer
packaging would then be subject to the
packaging regulations proposed at
§§ 4.62 and 5.62. TTB believes it is
appropriate to codify the rules related to
aggregate packaging, which apply to
labeling and standards of fill, as part of
this modernization project.
12. Subpart L—Recordkeeping and
Substantiation Requirements
Subpart L of parts 4, 5, and 7 sets
forth rules for recordkeeping and
substantiation requirements for alcohol
beverages. Existing regulations (27 CFR
4.51, 5.55, and 7.42) require bottlers
holding an original or duplicate original
of a certificate of label approval (COLA)
or a certificate of exemption to exhibit
such certificates, upon demand, to a
duly authorized representative of the
United States Government. Current
regulations (27 CFR 4.40, 5.51, and 7.31)
also require importers to provide a copy
of the applicable COLA upon the
request of the appropriate TTB officer or
a customs officer. However, these
regulations do not state how long
industry members should retain their
COLA. Furthermore, since these
regulations were originally drafted, TTB
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has implemented the electronic filing of
applications for label approval. Now,
over 90 percent of new applications for
label approval are submitted
electronically, and the rest are
processed electronically by TTB.
Industry members have asked for
clarification as to whether they have to
retain paper copies of certificates that
were processed electronically. Finally,
because industry members may make
certain specified revisions to approved
labels without obtaining a new COLA, it
is important that the industry members
keep track of which label approval they
are using when they make such
revisions.
Accordingly, proposed §§ 4.211,
5.211, and 7.211 are new to the
regulations and provide that, upon
request by the appropriate TTB officer,
bottlers and importers must provide
evidence of label approval for a label
that is used on an alcohol beverage
container and that is subject to the
COLA requirements of the applicable
part.
This requirement may be satisfied by
providing original certificates,
photocopies or electronic copies of
COLAs, or records showing the TTB
identification number assigned to the
approved COLA. Where labels on
containers reflect revisions to the
approved label that have been made in
compliance with allowable revisions
authorized to be made on the COLA
form or otherwise authorized by TTB,
the bottler or importer must be able to
identify the COLA covering the product,
upon request by the appropriate TTB
officer. Bottlers and importers must be
able to provide this information for a
period of five years from the date the
products covered by the COLAs were
removed from the bottler’s premises or
from customs custody, as applicable.
TTB believes that five years is a
reasonable period of time for record
retention because there is a five-year
statute of limitations for criminal
violations of the FAA Act. TTB notes
that the proposed rule does not require
industry members to retain paper copies
of each certificate; they should simply
be able to track a particular removal to
a particular certificate, and they may
rely on electronic copies of certificates,
including copies contained in the TTB
Public COLA Registry.
While the FAA Act does not contain
any specific recordkeeping requirements
in this regard, the labeling regulations
have for decades required industry
members to produce COLAs upon
demand. Furthermore, such records are
necessary to enforce the requirements of
the FAA Act with regard to COLAs and
certificates of exemption. See, e.g.,
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National Confectioners Ass’n v.
Califano, 569 F.2d 690, 693–94 (D.C.
Cir. 1978), which upheld the FDA’s
authority to require records in the
absence of a specific statutory
requirement where records were
necessary to help in the efficient
enforcement of the Federal Food, Drug
and Cosmetic Act.
Similarly, the FAA Act provides TTB
with comprehensive authority over the
labeling of wine, distilled spirits, and
malt beverages, and the COLA
provisions of the FAA Act are
specifically designed to ‘‘prevent the
sale or shipment or other introduction
of distilled spirits, wine, or malt
beverages in interstate or foreign
commerce, if bottled, packaged, or
labeled in violation of [27 U.S.C.
205(e)].’’ See 27 U.S.C. 205(e). The law
specifically requires a certificate holder
to have the COLA in its possession at
the time of bottling or removal of
containers from customs custody.
Requiring the holder to be able to show
evidence of label approval after removal
is simply a clarification of TTB’s current
requirements. We note that in addition
to the rulemaking authority provided by
27 U.S.C. 205, TTB has authority under
section 2(d) of the FAA Act, Public Law
74–401 (1935) ‘‘to prescribe such rules
and regulations as may be necessary to
carry out [its] powers and duties’’ under
the FAA Act.
Proposed §§ 4.212, 5.212, and 7.212
set forth specific substantiation
requirements, which are new to the
regulations, but which reflect TTB’s
current expectations as to the level of
evidence that industry members should
have to support labeling claims. The
proposed regulations provide that all
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Claims that contain express or implied
statements regarding the amount of
support for the claim (e.g., ‘‘tests
provide,’’ or ‘‘studies show’’) must have
the level of substantiation that is
claimed.
Furthermore, the proposed
regulations provide for the first time
that any labeling claim that does not
have a reasonable basis in fact, or
cannot be adequately substantiated
upon the request of the appropriate TTB
officer, will be considered misleading.
The regulations in subpart H are
similarly amended to include the same
requirement. TTB believes that this
provision, which is very similar to the
Federal Trade Commission’s policy on
substantiation of advertising claims,
will clarify that industry members are
responsible for ensuring that all labeling
and advertising claims have adequate
substantiation. See ‘‘FTC Policy
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Statement Regarding Advertising
Substantiation’’ (Appended to
Thompson Medical Co., 104 F.T.C. 648,
839 (1984), aff’d, 791 F.2d 189 (D.C. Cir.
1986), cert. denied, 479 U.S. 1086
(1987)).
13. Subpart M––Penalties and
Compromise of Liability
In proposed subpart M for parts 4, 5,
and 7, TTB proposes simply to include
references to various provisions of the
FAA Act. Proposed §§ 4.221, 5.221 and
7.221 state that a violation of the
labeling provisions of 27 U.S.C. 205(e)
is punishable as a misdemeanor and
refer readers to 27 U.S.C. 207 for the
statutory provisions relating to criminal
penalties, consent decrees, and
injunctions. Proposed §§ 4.222, 5.222,
and 7.222 provide that basic permits are
conditioned upon compliance with the
provisions of 27 U.S.C. 205, including
the labeling provisions of parts 4, 5 and
7, and that a willful violation of the
conditions of a basic permit provides
grounds for the revocation or
suspension of the permit, as applicable,
as set forth in 27 CFR part 1.
Proposed §§ 4.223, 5.223, and 7.223
set forth TTB’s authority to compromise
liability for a violation of 27 U.S.C. 205
upon payment of a sum not in excess of
$500 for each offense. This payment is
to be collected by the appropriate TTB
officer and deposited into the Treasury
as miscellaneous receipts.
By placing these provisions in the
regulations, TTB will make it easier for
a person to locate the penalties for
violating the FAA Act and the
regulations implementing the FAA Act.
These proposed regulations will not
change the criminal penalty and
compromise provisions, which are set
forth in the statute.
14. Subpart N—Paperwork Reduction
Act
The Office of Management and Budget
(OMB) assigns control numbers to TTB’s
information collection requirements. In
current parts 4, 5, and 7, the OMB
control numbers, in some instances, are
listed at the end of the sections that
impose the respective information
collection requirements. TTB believes
that industry members will have an
easier time locating OMB control
numbers for information collection
requirements if they are listed in one
location. Therefore, proposed subpart N
for parts 4, 5, and 7 contains a listing
of those sections of proposed part 4, 5,
or 7, as the case may be, that impose an
information collection requirement
along with the assigned OMB control
number.
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C. Proposed Changes Specific to 27 CFR
Part 4 (Wine)
In addition to the changes discussed
in section II B of this document that
apply to more than one commodity,
TTB is proposing additional editorial
and substantive changes specific to the
wine labeling regulations in part 4. This
section will not repeat the changes
already discussed in section II B of this
document. Accordingly, if a proposed
change is not discussed in this section,
please consult section II B. The
substantive changes that are unique to
part 4 are described below.
1. WWTG Labeling Protocol
As described below, TTB is proposing
to make several liberalizing changes to
the wine labeling regulations in part 4
to conform to international
commitments. TTB believes that these
changes will increase flexibility in
labeling for bottlers and importers of
wine, while providing consumers with
more information about the wine that
they are purchasing.
The World Wine Trade Group
(WWTG), which was founded in 1998,
is an informal grouping of government
and industry representatives from
Argentina, Australia, Canada, Chile, the
Republic of Georgia, New Zealand,
South Africa, and the United States. The
group shares information and
collaborates on a variety of international
issues to create new opportunities for
wine trade.
The WWTG Agreement on
Requirements for Wine Labeling
(‘‘Agreement’’) was initialed on
September 20, 2006, and was signed in
Canberra, Australia, on January 23,
2007, by the United States and other
governments. This is an executive
agreement and not a treaty. A full copy
of the agreement can be viewed at
https://ita.doc.gov/td/ocg/
WWTGlabel.pdf. Negotiations of the
Agreement proceeded from the view
that common labeling requirements
would facilitate trade by providing
industry members with the opportunity
to use the same label when shipping
wine to each of the WWTG member
countries.
To conform to Article 6 of the
Agreement, which requires the parties
to the Agreement to allow information
regarding alcohol content and certain
other common mandatory information
to be placed anywhere on a label in a
‘‘single field of vision,’’ TTB engaged in
rulemaking to eliminate the requirement
in the TTB regulations that alcohol
content be stated on the brand label. See
T.D. TTB 114 (78 FR 34565, June 10,
2013). After the rulemaking was
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completed, the United States deposited
its instrument of acceptance on October
1, 2013, and became a Party to the
Agreement on November 1, 2013.
Under the Agreement, the Parties
agreed to continue to discuss labeling
requirements concerning tolerances in
alcohol content statements, vintage
wine, grape variety designations, and
wine regions, with a view to concluding
an additional agreement on labeling.
This additional agreement––the
Labeling Protocol––was signed on
March 22, 2013, by several Governments
other than the United States, and
entered into force on November 1, 2013.
A full copy of the Labeling Protocol can
be found at https://ita.doc.gov/td/ocg/
protocol.pdf. Because some of the
existing labeling regulations in parts 4,
5 and 7 are inconsistent with the terms
of the Labeling Protocol, TTB must
engage in rulemaking on some of the
issues addressed in the Protocol. We
intend to address those issues in this
proposed rule.
The Labeling Protocol reflects labeling
requirements concerning tolerances in
alcohol content statements, vintage
wine, grape variety designations, and
wine regions that are consistent with
U.S. efforts to remove trade barriers. The
Labeling Protocol will allow U.S. wine
producers to export more easily to
parties to the Agreement that have more
restrictive labeling standards than the
United States.
The proposed changes relating to the
Labeling Protocol, as well as the other
substantive changes that are unique to
part 4 are described below, by subpart.
2. Subpart A—General Provisions
Proposed subpart A includes several
sections that have general applicability
to part 4, including a revised definitions
section, a section that defines the
territorial extent of the regulations,
sections that set forth to whom and to
which products the regulations in part
4 apply, a section that identifies other
regulations that relate to part 4, and
sections that address administrative
items such as forms and delegations of
the Administrator.
a. Definitions. Proposed § 4.1, which
covers definitions of terms used in part
4, is consistent with the current
regulatory text that appears in § 4.10,
with some amendments in addition to
those discussed in section II B of this
preamble.
TTB is proposing to add definitions of
the following terms: ‘‘brix,’’ ‘‘county,’’
‘‘fully finished,’’ and ‘‘grape wine.’’
These terms are used throughout part 4.
The proposed rule defines the term
‘‘brix’’ as ‘‘[t]he quantity of dissolved
solids expressed as grams of sucrose in
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100 grams of solution at 68 degrees
Fahrenheit. (20 degrees Celsius)
(Percent by weight of sugar).’’ This
definition is derived from and is
consistent with 27 CFR 24.10, with the
exception of changing a typographical
error currently found in section 24.10 of
‘‘60 degrees’’ to the correct temperature
of ‘‘68 degrees.’’ TTB intends to correct
the definition in § 24.10 in a separate
rulemaking document.
The current and proposed regulatory
texts use the term ‘‘county’’ when
providing for authorized appellations of
origin. TTB has been asked by many
industry members if the term ‘‘county’’
includes other political subdivisions
that are equivalent to a county, such as
a ‘‘parish’’ in Louisiana. The proposed
rule defines the term ‘‘county’’ to
include a county or a political
subdivision recognized by the State as a
county equivalent. This proposed
definition will allow the use of names
of county equivalents as appellations of
origin.
The current and proposed regulatory
texts use the term ‘‘fully finished’’ when
setting forth requirements for labeling
wine with an appellation of origin. For
example, one of the conditions in
current § 4.25(b)(1)(ii) is that ‘‘the wine
has been fully finished (except for cellar
treatment pursuant to § 4.22(c), and
blending that does not result in an
alteration of class or type under
§ 4.22(b)) in one of the labeled
appellation States.’’ The parenthetical
statement after ‘‘fully finished’’ appears
all three times that term is used in part
4. Accordingly, TTB is defining the term
‘‘fully finished’’ as ‘‘Ready to be bottled,
except that it may be further subject to
the practices authorized in § 4.154(c)
and to blending that does not result in
an alteration of class or type under
§ 4.154(b).’’
The proposed regulatory text uses the
term ‘‘grape wine’’ to include still grape
wine, sparkling grape wine, and
carbonated grape wine. The proposed
definition reflects the name change of
current class one grape wine to still
grape wine, but allows for use of an
umbrella term when referring to still
grape wine, sparkling grape wine, and
carbonated grape wine.
The proposed rule also amends the
current definitions of the following
terms: ‘‘bottler,’’ ‘‘pure condensed
must,’’ ‘‘total solids,’’ and ‘‘wine.’’
The current definition of the term
‘‘bottler’’ reads as ‘‘[a]ny person who
places wine in containers of four liters
or less.’’ TTB is proposing to remove the
size restriction associated with the
current definition to denote that a
person filling containers of any size is
considered a ‘‘bottler.’’ This change will
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allow industry members to use the term
‘‘bottled’’ rather than ‘‘packed’’ on
labels of wine in containers larger than
4 liters. For example, the industry
member may use ‘‘bottled by ABC
winery, Sutton, Massachusetts’’ rather
than ‘‘packed by ABC winery, Sutton,
Massachusetts’’ as the mandatory
address statement for a five-liter
container. TTB is also proposing to
replace the word ‘‘person’’ with the
phrase ‘‘[a]ny producer or blender or
wine, proprietor of bonded wine
premises, or proprietor of a taxpaid
wine bottling house’’ to better define
those who are eligible to bottle wine.
The proposed rule amends the term
‘‘bottler’’ to read as ‘‘[a]ny producer or
blender of wine, proprietor of bonded
wine premises or proprietor of a taxpaid
wine bottling house, who places wine in
containers.’’
The proposed rule amends the
definition of the term ‘‘pure condensed
must’’ by removing the word ‘‘balling’’
and replacing it with the word ‘‘brix’’
because the word ‘‘brix’’ is more
commonly used by the industry. The
terms ‘‘balling’’ and ‘‘brix’’ are
synonymous.
The proposed rule amends the
definition of the term ‘‘total solids’’ by
adding the words ‘‘with water’’ at the
end of this definition to clarify that
restoring wine to its original volume
must be done with water.
The proposed rule amends the
definition of ‘‘wine’’ under the FAA Act
by making clarifying changes, consistent
with the definition of ‘‘wine’’ in 27 CFR
part 1. This is a technical change and
does not alter the current meaning of
‘‘wine’’ in part 4.
b. Prohibitions and jurisdictional
limits. Proposed § 4.3 sets forth the
general requirements and prohibitions
under 27 U.S.C. 205(e). This repeats the
essential elements of the prohibitions
found in current § 4.30, and clarifies
that the regulations that prohibit the
alteration of labels apply to persons
holding wine for sale.
c. Products that are not ‘‘wine’’ under
the FAA Act. Proposed §§ 4.5 and 4.6
are new provisions that indicate which
wines are covered by part 4 and which
wine products are not covered by part
4. TTB receives many inquiries on this
issue, and TTB believes that including
this information in the regulatory text
will be helpful to its readers.
Certain winery products that may be
taxed as wine under the IRC do not fall
within the definition of ‘‘wine’’ under
the FAA Act, as found in 27 U.S.C.
211(a)(6), because of the differences
between the two statutes. Thus,
proposed § 4.5 clarifies that wine under
part 4 contains at least 7 percent and not
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more than 24 percent alcohol by
volume. Proposed § 4.6(a) clarifies that
part 4 does not cover products that
would otherwise meet the definition of
wine except that they contain less than
7 percent alcohol by volume. The
proposed rule states that bottlers and
importers of alcohol beverages that do
not fall within the definition of malt
beverages, wine, or distilled spirits
under the FAA Act should refer to the
applicable labeling regulations for foods
issued by the FDA. Proposed § 4.6(b)
clarifies that products that would
otherwise meet the definition of wine
except that they contain more than 24
percent alcohol by volume are classified
as distilled spirits and must be labeled
in accordance with 27 CFR part 5.
Proposed § 4.6 also includes a cross
reference to § 4.7, which refers to
labeling requirements under the ABLA
and the IRC.
3. Subpart E—Mandatory Label
Information
a. Brand labels. Currently, the TTB
regulations at § 4.32 require that certain
information appear on the brand label of
a wine container, while other
mandatory information, and any
additional information, may appear on
any label. The brand label is defined in
§ 4.10 as ‘‘[t]he label carrying, in the
usual distinctive design, the brand name
of the wine’’ and, under current § 4.32,
the brand name, class or type
designation, and statement of the
percentage of foreign wine in a blend of
American and foreign wines (where a
reference is made to the presence of
foreign wine on the label), must appear
on the brand label. Other mandatory
information may appear on any label.
In practice, however, a brand label
may wrap nearly or entirely around a
bottle or other wine container. As a
result, mandatory information may
appear anywhere on certain bottles and
containers. Furthermore, if the label
bearing the brand name is on the back
of the container, then it is the brand
label.
TTB believes that the current
regulations requiring that certain
mandatory information be placed on the
brand label of wine containers are
unduly restrictive. TTB believes that
consumers are used to looking at the
back and neck labels to find mandatory
information on containers.
Accordingly, TTB is proposing to
amend the regulations in proposed
§ 4.63 to allow mandatory information
to appear on any label on a wine
container.
b. Brand names. Proposed § 4.64
consolidates certain existing regulations
with regard to brand names and puts
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them in one section of the regulations.
Current § 4.32 requires that a brand
name be placed on labels of wine. What
may be used as a brand name is
specified in § 4.33. The current § 4.39(i)
pertains to geographical brand names.
The proposed rule moves these
provisions to proposed § 4.64(c) without
substantive changes.
TTB believes that placing the
provisions pertaining to geographical
brand names with the other provisions
pertaining to brand names will enable
industry members to find and
understand the regulations pertaining to
brand names more easily.
c. Alcohol content and the WWTG
Labeling Protocol. Under TTB’s current
regulations in § 4.36, the required
alcohol content statement for wine may
be expressed as a percentage of alcohol
by volume, or as a range, subject to
certain requirements. However, the
percentage of alcohol by volume is not
required to be specifically listed on the
label if the type designation ‘‘table’’ or
‘‘light’’ wine appears on the label.
Subject to certain restrictions, a
tolerance of one percentage point is
allowed for alcohol content statements
of wines containing more than 14
percent alcohol by volume, and a
tolerance of 1.5 percentage points is
allowed for wines containing 14 percent
or less alcohol by volume. One of the
current exceptions to the tolerance
provision states that the alcohol content
statement on a wine label must correctly
indicate both the taxable grade of the
wine and the class and type of the wine
if alcohol content is part of the
definition of the class and type.
Pursuant to Article 4.1(b) of the
WWTG Labeling Protocol, the United
States has agreed to accept alcohol
content tolerances of up to one
percentage point, provided that the
alcohol content statement must
correctly indicate the tax category,
regardless of tolerance levels. This is
consistent with current regulations,
except that it allows the use of a
tolerance in cases that cross over
minimum and maximum alcohol
content levels for labeling designations,
as long as this would not affect the tax
category.
Accordingly, proposed § 4.65
maintains the current tolerance levels
for alcohol content statements in wine,
and maintains the current exception to
the tolerance levels for alcohol content
statements related to maximum and
minimum alcohol contents for tax
classifications under 26 U.S.C. 5041.
The proposed rule allows the tolerance
levels to apply to alcohol content
statements that might affect the correct
class and type designation, w unless the
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class or type designation reflects a
minimum or maximum alcohol content
requirement consistent with
requirements set forth in a tax class.
An example of a class or type
designation that reflects an alcohol
content requirement consistent with a
requirement set forth in a tax
classification is ‘‘table wine.’’ The class
and type designation ‘‘table wine’’ for a
still grape wine is a designation that
reflects a maximum alcohol content of
14 percent alcohol by volume, which is
consistent with the maximum alcohol
content for a tax classification for still
wine under 26 U.S.C. 5041. Under
current and proposed regulations, grape
wine that is labeled as ‘‘table wine’’
need not bear a numerical alcohol
content statement. Thus, the designation
‘‘table wine’’ on a label serves two
purposes—it reflects the class and type
designation of the wine, and it reflects
the alcohol content for tax classification
purposes. Accordingly, under the
proposed rule, a still grape wine that
contains 14.2 percent alcohol by volume
would not receive the benefit of the
tolerance to the extent that the wine
may not be labeled either as a ‘‘table
wine’’ or with an alcohol content of 14
percent or less, regardless of the
tolerance prescribed in this section.
4. Subpart F—Restricted Labeling
Statements
Proposed Subpart F––Restricted
Labeling Statements, includes specific
rules for the use of certain statements on
labels, including statements regarding
allergens, the term ‘‘organic,’’ and other
specific statements. The following
discussion sets out some of the more
important provisions in proposed
subpart F that relate specifically to
wine.
a. Permit numbers. Current
§ 4.39(e)(2) sets forth specific format
rules for stating optional bonded wine
cellar and bonded winery numbers (for
example, ‘‘Bonded Wine Cellar
No. ll’’ or ‘‘B.W. No. ll’’). TTB
believes these format rules are
unnecessarily restrictive and proposes
to delete them. However, proposed
§ 4.86 retains the requirement that the
permit number appear adjacent to the
name and address of the person
operating the wine cellar or winery.
b. Use of vineyard, orchard, farm or
ranch names. Current § 4.39(m)
provides that the use of vineyard,
orchard, farm, or ranch names can only
be used if 95 percent of the wine is
produced from primary winemaking
material grown on the named vineyard,
orchard, farm, or ranch. This section
further provides that if the name has
geographical or viticultural significance,
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it is subject to the rules in §§ 4.39(i) and
4.39(b), which pertain to names having
geographical significance.
Consistent with current policy, TTB is
proposing to liberalize the current
regulations on the use of vineyard,
orchard, farm, or ranch names to allow
the use of those names as part of trade
names that are found on labels. It has
been TTB’s policy to allow the use of
trade names in name and address
statements, such as ‘‘Bottled by John
Doe Vineyards, Seattle, Washington,’’
where the wine has not been made from
grapes grown in the referenced vineyard
(or even where there is no vineyard with
that name). Furthermore, when such a
trade name appears on the label as part
of the bottling address, it may also be
used as a brand name on the label,
without meeting the 95 percent
requirement. TTB believes that
consumers do not see the use of a
vineyard, orchard, farm or ranch name
as part of a trade name as making a
claim as to the source of the grapes,
fruit, or other agricultural products used
to make the wine.
Accordingly, the revision to these
provisions in proposed § 4.87 clarifies
that the 95 percent rule does not apply
to trade names or brand names when the
vineyard, orchard, farm, or ranch name
is shown in the mandatory name and
address statement on the label. TTB is
retaining the provision that, when used
in a brand name, a vineyard, orchard,
farm, or ranch name having
geographical or viticultural significance
is subject to the requirements of
proposed § 4.64(b) and (c).
c. Appellations of origin. Proposed
§§ 4.88 through 4.91 set out the rules for
appellations of origin for grape wines.
Proposed §§ 4.96 through 4.98 set out
the rules for appellations of origin for
fruit wines, agricultural wine, and rice
wine. As discussed in more detail
below, TTB is proposing to separate out
these rules to make it easier to locate all
of the rules applicable to grape wine
and fruit wine, respectively.
Current § 4.25 sets forth rules
governing the minimum percentage of
fruit or other agricultural products that
must be grown within a specific
geographic area in order to qualify for
the use of an appellation of origin on a
wine label. It also imposes other
standards for use of an appellation of
origin; for example, the wine must
generally conform to the standards of
the named appellation governing the
composition, method of manufacture,
and designation of wines made in such
place.
TTB is proposing to include the
appellation of origin requirements in
several sections and incorporate other
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changes as discussed below. In addition
to stating what constitutes the use of an
appellation of origin, proposed § 4.88(d)
clarifies that an appellation of origin is
required when a grape wine is
designated with a varietal (grape type)
designation, a type designation of
varietal significance, or a semi-generic
type designation, or when the wine is
labeled with a vintage date. These
requirements are currently found in the
class and type regulations in § 4.34.
Current § 4.25(d) provides that an
appellation of origin comprising two or
no more than three States which are all
contiguous may be used if: (1) All of the
fruit or other agricultural products were
grown in the States indicated, and the
percentage of the wine derived from
fruit or other agricultural products
grown in each State is shown on the
label, with a tolerance of plus or minus
2 percent; (2) the wine has been fully
finished (except for cellar treatment
pursuant to § 4.22(c), and blending
which does not result in an alteration of
class or type under § 4.22(b)) in one of
the labeled appellation States; and (3)
the wine conforms to the laws and
regulations governing the composition,
method of manufacture, and designation
of wines in all the States listed in the
appellation.
In ATF Ruling 91–1, TTB’s
predecessor agency held that a
multistate appellation of origin cannot
be used if conflicting State requirements
preclude conformance with the laws
and regulations of all the States listed in
the appellation of origin. ATF also held
that, where a multistate appellation of
origin appears on the brand label and
the percentage of the wine derived from
grapes grown in each State is listed on
a label other than the brand label, the
States in the multistate appellation of
origin must be listed in a descending
order of predominance, according to the
percentage of the wine derived from
grapes grown in each State. Where both
the multistate appellation of origin and
the listing of the percentage of the wine
derived from grapes grown in each State
appear on the brand label, ATF stated
that it would carefully scrutinize the
placement and size and type of the label
statements, on a case-by-case basis, to
ensure that the label does not tend to
create a misleading impression as to the
origin of the wine.
Current § 4.25(d) also provides for
imported wines to be labeled with an
appellation of origin that is comprised
of the names of two or no more than
three states, provinces, territories, or
similar political subdivisions of a
country equivalent to a state, which are
all contiguous. The appellation may be
used if all of the fruit or other
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agricultural products were grown in the
states, provinces, territories, or similar
political subdivisions of a country
equivalent to a state indicated, and the
percentage of the wine derived from
fruit or other agricultural products
grown in each state, province, territory,
or similar political subdivision of a
country equivalent to a state is shown
on the label with a tolerance of plus or
minus 2 percent. Furthermore, the wine
must conform to the requirements of the
foreign laws and regulations governing
the composition, method of production,
and designation of wines available for
consumption within the country of
origin.
In accordance with the WWTG
Labeling Protocol, discussed earlier in
this preamble, the proposed rules
pertaining to multicounty and
multistate appellations of origin for both
domestic and imported wine in
proposed § 4.90 would: (1) Remove the
requirement that States (or political
subdivisions for imported wine) be
contiguous in order to claim that the
wine is produced from grapes grown in
more than one State; (2) reduce the
minimum percentage of grapes from 100
percent to 85 percent for wine to be
labeled with such an appellation; (3)
remove the requirement that the
percentage of the wine derived from
grapes grown in each State (or political
subdivisions for imported wine) must be
shown on the label; (4) add the
requirement that the amount of wine
derived from grapes grown in each State
(or political subdivision for imported
wine) named in the appellation must be
greater than the amount of wine derived
from grapes grown in any State not
named in the appellation; and (5) add
the requirement that States (or political
subdivisions for imported wine) be
listed in descending order according to
the percentage of wine derived from
grapes grown in those States (or
political subdivisions for imported
wine).
These amendments are liberalizing in
several regards. First, they would permit
the use of such an appellation where at
least 85 (rather than 100) percent of the
wine is derived from grapes grown
within the areas named in the
appellation. Second, they would
eliminate the requirement to list the
percentage of grapes from each State or
other region, thus allowing greater
flexibility in blending for producers.
TTB notes that this approach is more
consistent with regard to the rules for
single appellations of origin, which may
be comprised of not less than 75 percent
wine made from grapes grown in the
labeled region (in the case of an
appellation that is a State, county, or
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similar political subdivision), or 85
percent (in the case of an appellation
that is a viticultural area), without any
requirements for identifying the
percentage of grapes coming from
outside of the named appellation.
TTB also notes that the proposed
requirements with regard to listing
States and counties in descending order
of predominance are largely consistent
with the policy set forth in ATF Ruling
91–1, and supersedes that ruling.
Finally, the proposed requirement will
not require the listing of each State or
county (or foreign equivalent) on the
label; however, labels may not, for
example, selectively include States that
contributed only a small percentage of
grapes while leaving out States that
contributed a larger percentage of
grapes. For example, in a case where
grapes used to make a wine were grown
in 4 States, with the first 2 States
contributing 45 and 40 percent,
respectively, the third State contributing
12 percent and the fourth State
contributing 3 percent, the proposed
rule requires the listing of the first 2
States, in order of predominance,
leaving it up to the industry member
whether it wanted to include a third
State. However, the third State listed on
the label would have to be the State
contributing 12 percent, and not the
State contributing 3 percent, even
though in either case, the States listed
would contribute more than 85 percent
of the grapes used to make the wine.
The industry member could, of course,
choose to list all 4 States on the label.
Under the proposed rule, a multistate
appellation of origin for American wine
would continue to be unavailable unless
the wine is fully finished in one of the
labeled appellation States, and the wine
conforms to the laws and regulations
governing the composition, method of
manufacture, and designation of wines
in all of the States listed in the
appellation, which is consistent with
the current regulations.
In general, the current regulations
provide that wine derived from fruit or
agricultural products grown in the
county or State indicated on the label
may be designated with an appellation
of origin. This means that appellations
of origin are available to grape wine as
well as citrus wine, fruit wine, and
agricultural wine.
TTB is proposing to separate the
appellation of origin requirements for
grape wine from those requirements for
fruit and agricultural wine because an
appellation of origin becomes
mandatory when grape wine is labeled
with certain type designations or a
vintage date. Furthermore, an
appellation of origin for grape wine
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includes viticultural areas, which have
no relevance for fruit or agricultural
wine. Otherwise, TTB is proposing the
same liberalizing amendments for wines
labeled with appellations of origin,
regardless of whether the wines are
made from grapes, other fruit, or other
agricultural products.
d. Estate bottled and estate grown.
Proposed §§ 4.92 and 4.93 set out the
rules for use of the claims ‘‘estate
bottled’’ and ‘‘estate grown.’’ While the
‘‘estate bottled’’ rules are unchanged,
except for clarifying changes, the
proposed ‘‘estate grown’’ regulation is
new, and represents a change in policy.
On November 3, 2010, TTB published
Notice No. 109, an advance notice of
proposed rulemaking (ANPRM), that set
forth TTB policy regarding the use of
the term ‘‘estate grown’’ on wine labels
and requested comments (see 75 FR
67666). Specifically, TTB stated that, for
over twenty years, TTB and its
predecessor agency have allowed the
term ‘‘Estate grown’’ to be used as a
synonym for the term ‘‘Estate bottled.’’
The regulations providing for the use of
the term ‘‘Estate bottled’’ are found in
current § 4.26 and, in general, allow the
use of that term only if the wine is
labeled with a viticultural area
appellation of origin and the bottling
winery: (1) Is located in the labeled
viticultural area; (2) grew all of the
grapes to make the wine on land owned
or controlled by the winery within the
boundaries of the labeled viticultural
area; (3) crushed the grapes, fermented
the resulting must, and finished, aged,
and bottled the wine in a continuous
process (the wine at no time having left
the premises of the bottling winery).
Notice No. 109 explained that some
industry members had requested that
TTB permit the use of the words ‘‘Estate
grown’’ on labels of wines that do not
meet the ‘‘Estate bottled’’ standards in
§ 4.26. TTB invited comments from
industry members, consumers, and
other interested parties on whether TTB
should propose to amend the
regulations to reflect its current policy
that ‘‘Estate grown’’ may be used on a
label if the wine meets the requirements
for products labeled ‘‘Estate bottled’’
under § 4.26. TTB also asked if it should
propose a standard for ‘‘Estate grown’’
in the regulations that differs from that
specified for ‘‘Estate bottled’’ and, if so,
what that standard should be.
TTB received 16 comments in
response to its questions pertaining to
the use of ‘‘Estate grown’’ on labels.
Only four of the comments were in
support of TTB’s policy that ‘‘Estate
grown’’ may be used on the label only
if the wine meets the requirements for
products labeled ‘‘Estate bottled.’’ A few
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of the comments were in support of TTB
codifying its existing policy, and one
commenter stated its belief that all
aspects of the ‘‘Estate bottled’’
requirements should apply to the term
‘‘Estate grown,’’ except for the
requirement of the viticultural area.
Most of the comments suggested that
‘‘Estate bottled’’ and ‘‘Estate grown’’ are
not synonymous.
In this rulemaking document, TTB is
proposing to add a section to the
regulations that will provide for the use
of the term ‘‘Estate grown’’ (see § 4.93)
on a label only if all of the following
conditions are met:
(1) The wine is labeled with an
appellation of origin;
(2) The producing winery is located
within the appellation of origin;
(3) The producing winery grew all of
the grapes used to make the wine on
land owned or controlled by the
producing winery within the boundaries
of the appellation of origin, and
fermented 100 percent of the wine from
those grapes; and
(4) If the bottling winery is not the
producing winery, the label must state
that the wine was ‘‘estate grown’’ by the
producing winery, and the name and
address of both wineries must appear on
the label. An acceptable labeling
statement would be ‘‘Estate grown and
produced by ABC Winery, Seattle,
Washington. Bottled by XYZ Winery,
Tacoma, Washington.’’
This is a liberalizing change that will
allow the use of the term, ‘‘Estate
grown,’’ in a way that distinguishes
grape growing from bottling operations.
e. Claims on grape wine labels for
viticultural practices that result in sweet
wine. Proposed § 4.94 codifies in the
regulations for the first time the position
that TTB’s predecessor agency set out in
rulings pertaining to viticultural
practices that result in sweet wine. TTB
proposes to supersede ATF Rulings 78–
4, 82–4, and 2002–7, by incorporating
the rulings’ holdings in proposed § 4.94.
Initially, proposed § 4.94(a) sets out
the rules for using certain terms on
grape wine that denote the use of
viticultural practices resulting in sweet
wine. In all such cases, the wine must
also be labeled with the amount of sugar
contained in the grapes at the time of
harvest and with the amount of residual
sugar in the finished wine.
Proposed § 4.94 provides that the term
‘‘ice wine’’ may be used only to describe
wines produced exclusively from grapes
that have been harvested after they have
naturally frozen on the vine. The
proposed rule provides that wine
produced from grapes that were frozen
post-harvest may not be labeled as ‘‘ice
wine,’’ but may be labeled with a
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statement indicating the wine was made
from grapes that were frozen postharvest. It provides that wines labeled
with the term ‘‘ice wine,’’ ‘‘late
harvest,’’ or ‘‘late picked’’ may not be
ameliorated, concentrated, fortified, or
produced from concentrate. Finally,
proposed § 4.94 provides that wine
made from grapes that have been
infected with the botrytis cinerea mold
may be labeled with a term such as
‘‘Botrytis Infected,’’ ‘‘Pourriture Noble,’’
or another name for infection by the
botrytis cinerea mold.
f. Vintage dates for grape wine.
Proposed § 4.95 sets out the rules for the
use of vintage dates on wine labels. The
current regulations prescribing
requirements for labeling grape wine
with vintage dates are found in § 4.27.
These regulations characterize the
vintage date as the year of ‘‘harvest.’’
Thus, wine produced from grapes that
were grown in 2012 but harvested early
in 2013 must bear the year 2013 as the
vintage date.
However, the WWTG Labeling
Protocol provides that ‘‘vintage’’ is the
year of growth or harvest of the grapes
used to make the wine, as defined in
each Party’s laws, regulations, or
requirements. The current definition in
TTB’s regulations is thus more
restrictive than the definitions found in
the Labeling Protocol.
TTB recognizes that other countries
have different rules for vintage dates,
based on different growing conditions in
different parts of the world. For
example, in the Southern Hemisphere,
the growing season may start in
September and end in April, and thus
includes parts of two calendar years. In
Australia, the labeling rules provide that
grapes harvested between September 1
and December 31 of a particular
calendar year are treated as if they were
harvested in the following calendar year
for purposes of a vintage declaration.
This effectively treats the entire growing
season as a single year. In the Northern
Hemisphere, the issue is less likely to
arise, but does come up with regard to
grapes that may be harvested in January
for an ice wine type of product.
TTB believes that allowing the year of
harvest to be determined based on the
rules of the country of origin will not be
misleading to consumers. Accordingly,
we are proposing to amend the
regulations to provide that the year of
harvest for imported wines will be
determined in accordance with the
country of origin’s laws and regulations.
TTB proposes to remove the
requirement that a person who wishes
to label wine with a vintage date must
possess appropriate records from the
producer substantiating the year of
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vintage and the appellation of origin,
because the substantiation requirements
apply to all label claims, not just vintage
dates.
TTB proposes to liberalize the
requirements for imported wines that
are bottled in the United States, by
removing the requirement that such
wines must have been bottled in
containers of 5 liters or less prior to
importation, or that they be bottled in
the United States from the original
container of the product showing a
vintage date. This will allow the use of
vintage dates on wine imported in bulk
containers and bottled in the United
States, as long as the bottlers have the
appropriate documentation
substantiating that the wine is entitled
to be labeled with a vintage date.
The current regulations also provide
that wine bearing a vintage date must
also bear an appellation of origin that is
shown in direct conjunction with the
type designation as required by
§ 4.32(a)(2). As discussed in the grape
wine appellation of origin section of this
preamble, this rule would remove the
requirement that the appellation of
origin be shown in direct conjunction
with the type designation. Instead, the
appellation of origin would have to be
shown in the same field of vision as the
type designation.
The regulations in current § 4.27 also
provide that for a wine to be labeled
with a ‘‘vintage date,’’ it must have been
derived from grapes harvested in the
labeled calendar year. It has been TTB’s
longstanding policy that only one
vintage date may appear on a label, even
if the wine is made from grapes
harvested in different years. We note
that in 1980, in response to a petition,
ATF aired a proposal to allow multiple
vintage dates in an advance notice of
proposed rulemaking (see Notice No.
357, November 13, 1980, 45 FR 74942).
Comments on that proposal were evenly
divided, and subsequently ATF issued a
notice of proposed rulemaking setting
forth specific proposals (Notice No. 378,
August 5, 1981, 46 FR 39850). Because
only a few comments (mainly opposed
to allowing multiple vintage dates on
labels) were received in response to that
document, on May 18, 1984, ATF
published Notice No. 529, which
withdrew the proposal (49 FR 21083).
We do not intend to reopen this issue
at the present time. Accordingly, TTB
proposes to codify this policy in
proposed § 4.95.
g. Appellations of origin for fruit wine,
agricultural wine, and rice wine. As
discussed earlier in this preamble,
current § 4.25 prescribes the rules for
use of appellations of origin and allows
wine produced from ‘‘fruit or
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agricultural products’’ to bear an
appellation of origin. Proposed §§ 4.96
through 4.98 for labeling fruit wine,
agricultural wine, or rice wine contain
the same appellation of origin labeling
requirements as are proposed elsewhere
for labeling grape wine. See §§ 4.88
through 4.99.
5. Subpart H––Labeling Practices That
Are Prohibited if They Are Misleading
Proposed subpart H sets forth certain
labeling practices that are prohibited if
they are used in a misleading way. Most
of these subpart H provisions restate
and reorganize rules currently found in
the TTB regulations. Some of the
proposed revisions are set forth below.
Proposed § 4.133(a) broadens existing
language in current § 4.39(a)(8) to
prohibit the use of terms defined in part
4 in a manner that is not consistent with
the part 4 definitions. This would
include optional designations as well as
mandatory designations. For example,
under the proposed rule, a wine that
was produced from grapes that were not
frozen on the vine may not be labeled
with the optional claim ‘‘ice wine.’’
Proposed § 4.133(b) prohibits the use of
coined words that simulate or imitate
any class or type designation set forth in
parts 4, 5 and 7 unless the wine
conforms to the requirements prescribed
with respect to such designation and is
in fact so designated on its labels.
Finally, proposed § 4.133(c) and (d)
prohibit certain misleading references to
grape varieties and statements of harvest
date, respectively, subject to the
provisions of proposed §§ 4.136 and
4.134, respectively, as discussed below.
In general, proposed § 4.134 restates
the existing rules prohibiting certain
statements of age unless they are made
on a label that bears a vintage date. It
allows certain miscellaneous date
statements, such as statements about the
date on which a business was founded.
It also specifically states that, subject to
certain exceptions discussed below, the
use of harvest or growth dates is not
generally authorized for wines other
than those labeled with a vintage date
in accordance with proposed § 4.95.
Proposed § 4.134 liberalizes current
TTB policy prohibiting statements
relating to the years of harvest of grapes
or fruit as additional information for
wines designated as grape wine or fruit
wine. Accordingly, the proposed
regulations allow the use of additional
truthful, accurate, and specific
information about the year of harvest of
the grapes or fruit, provided that the
label indicates the percentage of wine
derived from grapes or fruit, as
applicable, harvested in each year. If
applicable, the years of harvest must be
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presented in descending order based on
the percentage of wine derived from
grapes or fruit, as applicable, grown in
each year. Examples of allowable
statements would be as follows: ‘‘60%
of the grapes used to make this wine
were harvested in 2014; the remaining
40% were harvested in 2013,’’ or ‘‘This
wine is a blend of 50% wine made from
apples harvested in 2012 and 50% wine
made from apples harvested in 2011.’’
Proposed § 4.135 is derived from
current § 4.39(k) and in general,
continues to prohibit misleading
references to the origin of the wine. The
proposed section liberalizes TTB’s
current policy by specifically
authorizing the use of truthful, accurate,
and specific information about the
origin of the grapes, fruit, or other
agricultural materials that were used to
produce the wine when such wine is
not labeled with an appellation of
origin. The name of the place may not
appear on the label in a way that creates
the misleading impression that the wine
is entitled to an appellation of origin.
Under both current and proposed
regulations, a wine is entitled to the
name of a State as an appellation of
origin if, among other things, at least 75
percent of the wine is derived from fruit
or agricultural products grown in that
State, and it has been fully finished
(except for certain cellar treatment and
blending) within the labeled State or an
adjacent State. Thus, if a grape wine is
made in New York, and 50 percent of
the grapes are grown in New York and
the other 50 percent are grown in
Virginia, the wine would not be entitled
to either a New York or a Virginia
appellation of origin. Furthermore, the
wine would not be entitled to a
multistate appellation of origin, because
New York and Virginia are not
contiguous.
Under the proposed regulations, the
label for such a wine may include
additional information about where the
grapes were grown, even though the
wine is not entitled to either a New
York or a Virginia appellation of origin.
However, neither state name can stand
alone as though the wine is entitled to
a single state appellation of origin, nor
can the wine be designated as ‘‘New
York/Virginia wine.’’ The additional
information must set forth the origin of
100 percent of the grapes, fruit or other
agricultural products used to make the
wine, in descending order of
predominance, together with the place
where the wine was fermented. This
will ensure that the consumer is not
misled into believing that a statement of
the origin of the grapes used to make a
grape wine is the same as an appellation
of origin for that wine. For example, if
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the wine in question is designated ‘‘red
wine,’’ the proposed regulation would
allow the label to include a statement
such as ‘‘This wine was fermented and
bottled in New York from 50 percent
grapes grown in New York and 50
percent grapes grown in Virginia.’’
Proposed § 4.136(a) and 4.136(b)
restate the prohibition in current
§ 4.39(n) on the use of varietal names,
type designations of varietal
significance, semi-generic geographic
type designations, or geographically
distinctive designations, on wines that
are not made in accordance with the
standards set forth in the standards of
identity for still grape wine, sparkling
grape wine, and carbonated grape wine.
The proposed language also makes it
clear that the use of such names on a
grape wine that does not meet the
requirements for use of the designation
named is prohibited if it tends to create
a false or misleading impression as to
the designation, origin, or identity of the
wine.
Proposed § 4.136(c) codifies and
supersedes ATF Ruling 85–14, which
allowed the use of certain information
about grape varieties as additional
information on the labels of certain
wines. The proposed regulation allows
the use of truthful, accurate, and
specific additional information on the
label about the grape varieties used to
make a still grape wine, sparkling grape
wine, or carbonated grape wine,
provided that the information includes
every grape variety used to make the
wine, listed in descending order of
predominance. The percentage of each
grape variety may be, but is not required
to be, shown on the label, with a
tolerance of two percentage points.
When shown, percentages must be
shown for all grape varieties listed, and
the total must equal 100 percent.
As discussed later in this document,
TTB is proposing to liberalize the rules
for use of a designation that includes
more than one grape variety. Under this
proposal, a varietal designation that
includes the names of two or more
varieties may be used without
disclosing the percentage of the wine
derived from each variety, as is
currently required under § 4.23(d). If
this option is available, it is not clear
whether industry members will still
want to include information about grape
varieties as additional information,
rather than labeling their wines with a
varietal designation that includes two or
more grape varieties. However, TTB
recognizes that many wine labels
currently include information about
grape varieties as additional
information; thus, we are proposing to
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continue to allow this practice. TTB
seeks comments on this proposal.
TTB is proposing to eliminate the
provision in current § 4.39(j) that
inappropriately treats ‘‘product names’’
as if they were ‘‘brand names,’’ and thus
causes confusion. The current text
allows for certain ‘‘product names with
specific geographical significance’’
when qualified with the word ‘‘brand,’’
even where the geographical name does
not accurately represent the origin of the
wine. [Emphasis added.] TTB solicits
comments on the proposed revisions
with regard to representations as to
origin. In particular, TTB requests
information on whether this proposed
change may affect current labels.
TTB is also proposing to eliminate the
provision in current § 4.39(l), which
prohibits the use of foreign terms which
(1) describe a particular condition of the
grapes at the time of harvest; or (2)
denote quality under foreign law on
labels of domestically produced wine.
TTB believes that the misleading use of
such foreign terms is covered by the
general prohibition of misleading
statements or representations as to the
age, origin, identity, or other
characteristics of the wine (see proposed
§ 4.122).
6. Subpart I—Standards of Identity for
Wine
a. General overview of the classes and
types of wine. The regulations governing
how wine must be identified on labels
and the provisions for optional labeling
statements are found in current subpart
C, and are referred to as the ‘‘standards
of identity.’’ Current § 4.21 sets forth the
standards of identity for wine and
prescribes the several classes and types
of wine that an industry member may
use to designate wine. The consistent
and accurate designation of wine leads
to consumer and trade understanding of
the quality and identity of the wine.
Current § 4.32 requires a class, type or
other designation to appear on the brand
label. The general rules for class and
type designations are set forth in current
§ 4.34. In general, the regulations
require the class designation to appear
on the label; however, certain type
designations are authorized for use in
place of a class designation. These other
type designations are not specified in
the current standards of identity but are
found elsewhere in the regulations in
part 4. For example, under current
§ 4.23, the names of one or more grape
varieties may be used as a type
designation of a grape wine, subject to
certain conditions. In addition to these
varietal type designations, current § 4.28
sets forth the conditions for use of ‘‘type
designations of varietal significance.’’
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Current § 4.24 sets out the rules for
‘‘generic,’’ ‘‘semi-generic,’’ and ‘‘nongeneric’’ designations of geographic
significance. TTB is proposing to
reorganize the standards of identity so
that proposed § 4.142 includes all of the
type designations within the class
designation ‘‘still grape wine.’’
In addition to the various
designations discussed above, a
statement of composition may be
required to accompany certain class and
type designations. For example, current
§ 4.21(d), (e), and (f) prescribe the
standards of identity for citrus wine,
fruit wine, and wine from other
agricultural products, respectively.
These standards require that an
adequate statement of composition be
placed on the label, along with the
appropriate class designation, when the
wine is produced from more than one
type of fruit, citrus fruit, or agricultural
product, respectively. TTB is proposing
to amend the regulations to allow a
designation (such as ‘‘apple-pear wine’’)
rather than a statement of composition.
TTB is amending the standards of
identity to incorporate all of the ways in
which an industry member may
designate wine in accordance with
TTB’s regulations. By indicating all of
the ways an industry member must or
may designate wine within the
standards of identity, the proposed
regulations provide better guidance on
what constitutes a class designation or
a type designation, and when a type
designation may be used in place of a
class designation.
b. Production standards. Current
§ 4.21 refers to numerous production
standards that impact the way in which
a wine may be designated. These
include amelioration limits, volatile
acidity levels, and the addition of
brandy and alcohol. However, in many
cases, these standards refer to outdated
rules under chapter 51 of the Internal
Revenue Code.
Wine that is domestically produced
must be made in compliance with the
production standards set forth in 26
U.S.C. 5381–5387, and designated in
accordance with 26 U.S.C. 5388. These
rules are also found in TTB’s IRC-based
wine regulations in 27 CFR part 24.
In accordance with part 24, wine that
is the product of the juice or must of
sound, ripe grapes or other sound ripe
fruit (including berries), made with any
cellar treatment authorized by subparts
F and L of part 24 and containing not
more than 21 percent by weight of total
solids, is deemed to be ‘‘natural wine.’’
Classes 1, 2, and 3 of the existing
regulations in current § 4.21 are grape
wine, sparkling grape wine, and
carbonated grape wine, respectively,
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and are produced by the normal
alcoholic fermentation of the juice of
sound, ripe grapes (including restored
or unrestored pure condensed grape
must), with or without the addition,
after fermentation, of pure condensed
grape must, and with or without added
grape brandy or alcohol, but without
other addition or abstraction except as
may occur in cellar treatment. As
discussed further below, TTB is
proposing to revise the standards of
identity for grape wines and for fruit
wines to clarify that these wines must
be ‘‘natural wines’’ in accordance with
26 U.S.C. 5381–5383.
c. Natural wine certification. Prior to
amendment in 2004, section 5382 of the
IRC, 26 U.S.C. 5382(a), set forth certain
standards for the proper cellar treatment
of ‘‘natural wine.’’ That section
provided that ‘‘proper cellar treatment
of natural wine constitutes those
practices and procedures in the United
States and elsewhere, whether historical
or newly developed, of using various
methods and materials to correct or
stabilize the wine, or the fruit juice from
which it is made, so as to produce a
finished product acceptable in good
commercial practice.’’ Section 5382(b)
then went on to provide certain
practices that were specifically
recognized, including standards for the
amelioration and sweetening of natural
wine and standards for the addition of
wine spirits to natural wine.
Section 2002 of the Miscellaneous
Trade and Technical Corrections Act of
2004, Public Law 108–429, 118 Stat.
2434 (‘‘the Act’’), was signed by the
President on December 3, 2004. Section
2002 of the Act revised section 5382(a)
of the IRC. The revision of section
5382(a) took effect on January 1, 2005,
and involved the following principal
substantive changes: (1) The addition of
a new paragraph (1)(B) to provide that,
in the case of wine produced and
imported subject to an international
agreement or treaty, proper cellar
treatment of natural wine includes those
practices and procedures acceptable to
the United States under the agreement
or treaty; and (2) the addition of a
paragraph (3) setting forth a new
certification requirement regarding
production practices and procedures for
imported natural wine produced after
December 31, 2004.
The new certification provision
directs the Secretary of the Treasury to
accept the practices and procedures
used to produce the wine if, at the time
of importation, one of the following
conditions is met:
(1) The Secretary has on file or is
provided with a certification from the
government of the producing country,
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accompanied by an affirmed laboratory
analysis, that the practices and
procedures used to produce the wine
constitute proper cellar treatment under
regulations prescribed by the Secretary;
(2) The Secretary has on file or is
provided with a certification required
by an international agreement or treaty
covering proper cellar treatment, or the
wine is covered by an international
agreement or treaty covering proper
cellar treatment that does not require a
certification; or
(3) In the case of an importer that
owns or controls or that has an affiliate
that owns or controls a winery operating
under a basic permit issued by the
Secretary, the importer certifies that the
practices and procedures used to
produce the wine constitute proper
cellar treatment under regulations
prescribed by the Secretary.
The certification provision went into
effect on January 1, 2005. Effective May
28, 2008, TTB adopted a final rule
implementing the certification
requirements regarding production
practices and procedures for imported
natural wine. The regulations
implementing this statutory requirement
are found in 27 CFR 27.140, which
states that, except as otherwise
provided, an importer of natural wine
must have an original or copy of a
certification from the producing country
stating that the practices and procedures
used to produce the imported wine
constitute proper cellar treatment in
part 24. As provided for in the law, one
exception to this requirement is for
natural wines that are imported from
countries that have an international
agreement or treaty (enological practices
agreement) with the United States
specifying that the practices and
procedures used to produce the wine
are acceptable to the United States.
Currently, 35 countries have enological
practices agreements with the United
States. These agreements exempt certain
natural grape wines from the natural
wine certification requirement.
d. Proposed changes and questions
pertaining to the standards of identity
for wine. It is clear that the existing
standards of identity for grape wine
(including sparkling grape wine and
carbonated grape wine), citrus wine,
and fruit wine are intended to
incorporate the standards set forth in
the IRC for the sweetening and
amelioration of natural wine, as well as
the standards for the addition of wine
spirits. However, as set forth in further
detail below, because of amendments
over time to the IRC standards, the
existing regulations contain a patchwork
of inconsistent references to current and
prior standards.
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TTB is proposing to update these
standards to clarify that these classes of
wine must comply with the standards
for ‘‘natural wine’’ set forth in section
5382 of the IRC. For imported wines,
this means that a wine designated as a
still grape wine, sparkling grape wine,
or carbonated grape wine must be made
in accordance with the standards set
forth in 26 U.S.C. 5382 and 5383 for
natural wine, and a wine designated as
a fruit wine must be made in accordance
with the standards set forth in 26 U.S.C.
5382 and 5384 for natural wine. It
should be noted that imported wines
can comply with the standards set forth
in 26 U.S.C. 5382 if the practices used
to make the wine have been accepted by
the United States in an international
agreement or treaty. Under the proposed
rule, imported wines that are not
entitled to a grape wine or fruit wine
designation because they are not
‘‘natural wine’’ would have to meet the
standards of identity for another
designation set forth in part 4 or be
designated with a statement of
composition.
Proposed § 4.151 restates the
requirements currently found in
§ 4.34(a) with regard to the designation
of wines with a truthful and adequate
statement of composition where the
wine does not conform to any of the
standards of identity found in part 4. As
announced in the Department of the
Treasury’s semiannual regulatory
agenda (available online at https://
www.reginfo.gov), TTB plans to publish
a notice of proposed rulemaking titled
‘‘Proposals Concerning Labeling of
Flavored Wine,’’ in which TTB will
propose more specific rules regarding
the labeling of flavored wine products.
Accordingly, proposed § 4.151(c) simply
states that ‘‘the appropriate TTB officer
may require a statement of composition
to identify the base wine(s), including
blends of wine or fermentable materials,
as well as other materials added to the
wine before, during, and after
fermentation, as appropriate, in order to
ensure that the label provides adequate
information about the identity of the
product.’’
This proposed language would not
change current policy with regard to
statements of composition on wine
labels. Proposed § 4.151(c) also sets
forth current policy regarding
statements of composition for a blend of
two different types of fruit or
agricultural wine. In those cases, the
statement of composition must include
of the names of the types of wine (such
as, ‘‘blueberry wine and apple wine’’ or
‘‘mead/rhubarb wine’’).
TTB is proposing substantive changes
that affect multiple classes of wine, as
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well as several substantive changes that
affect individual classes of wine. These
changes are described below:
i. Amelioration. Pursuant to 26 U.S.C.
5383 and 27 CFR 24.10, amelioration is
the addition to wine or juice, of water,
sugar, or a combination of both to
reduce or balance high acid content in
some juice and wines. Amelioration
may take place before, during, or after
fermentation. Current § 4.21(a) provides
three amelioration standards for grape
wine, and current § 4.21(d), (e), (f), and
(g) provide two amelioration standards
each for citrus wine, fruit wine, and
wine from other agricultural products.
Current § 4.21(a) allows grape wine to
be ameliorated before, during, or after
fermentation either: (1) By adding,
separately or in combination, dry sugar,
or such an amount of sugar and water
solution as will not increase the volume
of the resulting product more than 35
percent, as long as the product so
ameliorated does not have an alcohol
content derived by fermentation of more
than 13 percent by volume, or a natural
acid content, if water has been added,
of less than five parts per thousand, or
a total solids content of more than 22
grams per 100 cubic centimeters; (2) by
adding, separately or in combination,
not more than 20 percent by weight of
dry sugar, or not more than 10 percent
by weight of water; or (3) in the case of
domestic wine, in accordance with 26
U.S.C. 5383.
In general, the first two amelioration
methods date back to the late 1930s and
could be used for both domestic and
imported wines. The methods
conformed to the provisions of the 1939
IRC at 26 U.S.C. 3036. When the IRC of
1954 was enacted, new amelioration
provisions were added. A specific
reference to section 5383 of the 1954
IRC was added to § 4.21 through the
publication of T.D. 6319 (23 FR 7698)
on October 4, 1958.
The amelioration rule in part 24 (27
CFR 24.178) states that ‘‘the fixed acid
level of the juice or wine may not be
less than 5.0 grams per liter after the
addition of ameliorating material.’’
However, this requirement only applies
in part 4 if water was used as the
ameliorating material. TTB has found
that the difference in methods is
confusing for industry members, as well
as the public at large.
Furthermore, different terminology
relating to amelioration is used in
current parts 4 and 24. Current part 4
refers to a ‘‘natural acid content’’ in
parts per thousand, while current part
24 refers to a ‘‘fixed acidity level’’ in
grams per liter. The difference in
terminology and units also is confusing
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for industry members, as well as the
public at large.
Accordingly, this proposed rule
removes two of the three amelioration
methods listed in the part 4 regulations.
This change is made in proposed
§§ 4.142, 4.145, and 4.146. The
proposed rule will clarify that grape
wines, and fruit wines must all conform
to the standards for natural wine set
forth in the IRC.
ii. Cellar treatment. The current
regulations for classes 1, 4, and 5 (grape
wine, citrus wine, and fruit wine)
prohibit the addition or abstraction
(removal) of substances other than those
specified in the standard of identity and
those provided for as cellar treatment.
As indicated above, this proposed rule
will clarify that grape wine and fruit
wine must be made according to the
standards set forth in 26 U.S.C. 5382
and 5384 for natural wine under the
IRC. Thus, the proposed standards of
identity for grape wine and fruit wine
cross reference the statutory cellar
treatment provisions for natural wine in
sections 5382 and 5384. This change is
made in proposed §§ 4.142 and 4.145.
iii. Added brandy or alcohol. The
current regulations concerning classes 1,
4, and 5, allow for the addition of grape
brandy, citrus brandy, or fruit brandy,
respectively, or alcohol. Domestically
produced natural wines may only be
produced with the addition of brandy or
wine spirits that are derived from the
same kind of fruit. For example, grape
wine can be produced with the addition
of grape brandy or grape wine spirits,
and strawberry wine can be produced
with the addition of strawberry brandy
or strawberry wine spirits. With regard
to imported wines, however, in some
cases, the United States has recognized
fortification practices of the country of
origin that allow for the use of spirits
that are derived from a different source.
TTB believes that the existing
regulation’s authorization of the
addition of ‘‘grape brandy or alcohol’’ to
grape wine, and the addition of ‘‘fruit
brandy or alcohol’’ to fruit wine may
cause confusion and is therefore
proposing to instead authorize the
addition of ‘‘added spirits of the type
authorized for natural wine under 26
U.S.C. 5382’’ in proposed §§ 4.142 and
4.145. This change will incorporate the
standards which specify that wine
spirits must be derived from the same
type of fruit, which are found in 26
U.S.C. 5382, but it will also provide for
the recognition of different standards for
certain imported wines pursuant to
international agreements.
iv. Dessert wine. Current § 4.21(a), (d),
(e), (f), and (g) prescribe the standard for
designating grape wine, citrus wine,
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fruit wine, and wine from other
agricultural products as ‘‘dessert wine.’’
Dessert wine is defined as wine having
an alcoholic content in excess of 14
percent but not in excess of 24 percent
by volume. TTB is not proposing to
change this standard, but seeks
comments on it, as explained below.
TTB has rejected applications for
COLAs for labels that carry the term
‘‘dessert wine’’ where the wine did not
contain more than 14 percent alcohol by
volume. It has been suggested that the
trade and consumer understanding of
the term ‘‘dessert wine’’ may no longer
be consistent with the meaning that the
regulations assign to it. TTB has
approved labels for wines containing no
more than 14 percent alcohol by volume
that include the phrase ‘‘may be served
as dessert wine.’’ TTB believes that
consumers may believe that the term
‘‘dessert wine’’ indicates the level of
sweetness that the wine possesses, or
may attribute some other meaning to the
word. Accordingly, TTB is interested in
receiving comments pertaining to the
use of ‘‘dessert wine’’ as a designation
that denotes alcohol content. TTB is
also interested in receiving comments
on whether there is a more appropriate
term for designating wines that contain
more than 14 percent alcohol by volume
but less than 24 percent alcohol by
volume.
v. Light wine. The current regulations
for grape wine allow the term ‘‘light’’ to
be used in two instances. The first is as
an alternative designation for ‘‘table
wine,’’ which is defined as ‘‘grape wine
having an alcoholic content not in
excess of 14 percent by volume.’’ The
second instance in which ‘‘light’’ may
be used for grape wine is as a
designation that denotes that a ‘‘dessert
wine’’ that has no more than 17 percent
alcohol by volume (for sherry) or 18
percent alcohol by volume (for angelica,
madeira, muscatel, or port). The current
classes for citrus wine, fruit wine, and
wine from other agricultural products
also allow the designation ‘‘light wine’’
in lieu of the designation ‘‘table wine.’’
TTB is not proposing to change the
standard for ‘‘light’’ wine but is
interested in receiving comments as to
whether the proposed use of the
designation ‘‘light’’ on wine labels, to
indicate alcohol content, is consistent
with industry and consumer
understanding of that term.
vi. Natural wine. Current classes 1, 4,
and 5 provide for wine that does not
contain ‘‘added brandy’’ to be
designated as ‘‘natural.’’ TTB has
received numerous applications for
COLAs which use the designation
‘‘natural.’’ On these proposed labels, the
term ‘‘natural’’ was intended to indicate
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to the consumer that the wine was
produced following a certain set of
production guidelines.
TTB believes that the designation
‘‘natural’’ may no longer have the
meaning ascribed to it by the
regulations. Additionally, the definition
in the current part 4 is inconsistent with
the IRC definition. Accordingly, the
standards of identity no longer provide
that grape wine or fruit wine containing
no added brandy or alcohol may be
designated as ‘‘natural.’’ TTB is
interested in receiving comments
regarding whether trade and consumer
understanding of the term ‘‘natural,’’
when used on a wine label, is that no
brandy has been added to the wine. TTB
is also interested in receiving comments
that indicate how the industry and
consumers interpret the term ‘‘natural’’
in relation to wine. Finally, commenters
should let TTB know if the proposed
change would impact existing labels.
vii. Changes pertaining to individual
classes or types. In addition to the
changes affecting multiple classes of
wine discussed above, TTB is making
the following changes affecting certain
individual classes of wine:
• Champagne ‘‘style’’ and ‘‘type:’’
Current § 4.21(b)(2) recognizes
‘‘champagne’’ as a type of sparkling
grape wine the effervescence of which
results solely from the secondary
fermentation of the wine in glass
containers of not greater than one gallon
capacity. Sparkling wines having the
taste, aroma, and characteristics
generally attributed to champagne but
not otherwise conforming to the
standard for champagne may, in
addition to but not instead of the class
designation ‘‘sparkling wine,’’ be further
designated as ‘‘champagne style’’ or
‘‘champagne type’’ or as ‘‘champagne’’
(along with an appellation of origin),
and a qualifying term such as ‘‘bulk
process,’’ ‘‘fermented outside the
bottle,’’ ‘‘secondary fermentation
outside the bottle,’’ ‘‘secondary
fermentation before bottling,’’ ‘‘not
fermented in the bottle,’’ or ‘‘not bottle
fermented.’’ The term ‘‘charmat
method’’ or ‘‘charmat process’’ may be
used as additional information.
The proposed regulations in
§ 4.173(d) continue to allow the use of
‘‘champagne’’ with one of the qualifying
terms specified above on products
designated as ‘‘sparkling wine,’’ where
their effervescence results from
secondary fermentation in containers
with a capacity of more than one gallon.
The proposed regulations clarify that
such wines must comply with the rules
applicable to the use of ‘‘champagne’’ as
a semi-generic designation, in
accordance with proposed § 4.174.
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Thus, a sparkling wine that undergoes
secondary fermentation in a tank may be
designated, for example, as ‘‘Sparkling
wine,’’ with the further designation of
‘‘New York champagne—not fermented
in the bottle—Charmat process,’’ or
‘‘California champagne style—bulk
process’’ as long as the use of the term
‘‘champagne’’ complies with the
grandfathering and other rules set forth
in proposed § 4.174.
• Fruit wine and citrus wine: The
standards of identity currently provide
for a class, fruit wine, in § 4.21(d) and
a class, citrus wine, in § 4.21(e). The
production requirements, such as
amelioration and acidity limits, are the
same for fruit wine and citrus wine.
Furthermore, the ways in which fruit
wine and citrus wine may be designated
are consistent. Finally, TTB does not
receive many applications for COLAs
for wines designated as ‘‘citrus wine’’
(as opposed to applications for COLAs
for citrus wines derived wholly from
one kind of citrus fruit, such as ‘‘orange
wine’’ or ‘‘grapefruit wine’’).
Eliminating the class ‘‘citrus wine’’
would not require a change to labels of
citrus wines that are made from a single
type of citrus fruit. For these reasons
and because citrus is a type of fruit, TTB
proposes to eliminate the class of
‘‘citrus wine’’ and to include any wines
made from citrus fruits in the fruit wine
class. TTB solicits comments on
whether this change (in proposed
§ 4.145) will require changes to existing
labels.
• Agricultural wine: Current § 4.21(f)
provides that ‘‘wines from other
agricultural products’’ constitute class 6.
This class includes wines produced
from honey, raisins, dandelions, rice,
maple syrup, and agave. This class does
not include wines produced from fruit
that is used in the production of grape
wine, fruit wine, or citrus wine.
Currently, wine produced from rice in
accordance with the commonly
accepted method of manufacture of such
a wine is designated as Sake´, which is
a type of ‘‘wine from other agricultural
products.’’
TTB proposes to move Sake´ from
current class 6, and create a new class,
‘‘rice wine,’’ in order to more clearly
describe the standards for rice wines,
including Sake´ and Gyeongju Beopju.
Pursuant to Article 2.13.2 of the United
States-Korea Free Trade Agreement, the
United States agreed to recognize
Gyeongju Beopju as a distinctive
product of the Republic of Korea.
Gyeongju Beopju was recognized in TTB
Ruling 2012–3 as a non-generic
designation of geographic significance,
and as a product made in the Republic
of Korea in accordance with the laws
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and regulations of the Republic of Korea
governing the manufacture of this
product. Proposed § 4.148(c)(2)
recognizes Gyeongju Beopju as a type
designation, which means that the
words ‘‘rice wine’’ would not have to
appear as part of the designation. TTB
seeks comments on whether this is
appropriate, or whether the product
should be designated as ‘‘Gyeongju
Beopju rice wine.’’ TTB Ruling 2012–3
also recognizes Andong Soju, which is
a distilled spirit, as a distinctive product
of the Republic of Korea. As discussed
in section II D of the preamble, TTB is
proposing to amend the distilled spirits
regulations to incorporate this holding
of the ruling, and to supersede TTB
Ruling 2012–3 in its entirety.
• Varietal (grape type) labeling:
Proposed § 4.156 sets out the rules for
varietal (grape type) labeling as a type
designation for grape wine. The
proposed rule is largely consistent with
the current regulation, but sets out some
liberalizing changes consistent with the
WWTG Labeling Protocol, discussed
earlier in this preamble.
The regulation providing for the use
of one or more grape varieties as the
type designation for grape wine is in
current § 4.23. In addition to other
requirements, current § 4.23 requires
that a wine labeled with a varietal
designation also be labeled with an
appellation of origin.
Subject to certain exceptions, current
§ 4.23(b) provides that the name of a
single grape variety may be used as the
type designation of a grape wine if not
less than 75 percent of the wine is
derived from grapes of that variety, and
if all of that 75 percent is grown in the
area indicated by the labeled
appellation of origin.
Current § 4.23(d) sets forth the current
rules for the use of two or more grape
varieties as the type designation for a
grape wine. All of the grapes used to
make the wine must be of the varieties
shown on the label. The percentage of
the wine derived from each variety must
be shown on the label (with a tolerance
of plus or minus 2 percentage points).
Finally, if the wine is labeled with a
multicounty appellation of origin, the
percentage of the wine derived from
each variety from each county must be
shown on the label; and if the wine is
labeled with a multistate appellation of
origin, the percentage of the wine
derived from each variety from each
State must be shown on the label.
TTB is proposing to make changes
consistent with the WWTG Labeling
Protocol. For wines labeled with more
than one grape variety as the type
designation, these changes would
require that not less than eighty-five
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percent (instead of 100 percent) of the
wine be derived from grapes of the
labeled varieties. They would also
remove the requirement that the
percentage of the wine derived from
each variety must be shown on the
label. The proposed regulations remove
the requirement that, if the wine is
labeled with a multicounty or multistate
appellation of origin, the percentage of
the wine derived from each county or
State must be shown on the label. The
proposed rule adds a requirement that
each grape variety listed must be in
greater proportion in the wine than any
variety that is not listed, and requires
that the varieties be listed in descending
order of predominance, based on the
percentage of wine that is derived from
each grape variety. Thus, if a wine is
made from four different varieties of
grapes, with the first representing 50
percent of the wine, the second
representing 40 percent of the wine, the
third representing seven percent of the
wine, and the fourth representing three
percent of the wine, the bottler would
have three options under the proposed
rule if it wishes to use a varietal
designation. It could list all four of the
varieties, in descending order of
predominance, or it could list the first
three varieties, in descending order of
predominance, or it could list simply
the first two varieties, in descending
order of predominance. However, the
proposed rule would not allow the
bottler to include the fourth variety
(representing three percent of the wine)
without also including the third variety
(representing seven percent of the
wine).
As previously noted, proposed
§ 4.23(b) requires that 75 percent of the
wine must be derived from grapes of the
variety listed on the label. This allows
for some blending with wines made
from other grapes, which are not
required to be listed on the label. TTB
believes that the proposed rule would
provide consumers with adequate
information about the identity of the
product, and encourage the use of
multiple varietal designations by
producers. The proposed regulations
would afford greater flexibility in the
blending of wines.
Proposed § 4.157 sets forth rules on
grape type designations of varietal
significance. These are largely
consistent with current § 4.28, with the
exception of a proposed change relating
to the designation ‘‘Gamay Beaujolais.’’
In 1997, ATF published a final rule
(T.D. ATF–388, 62 FR 16749) that
phased out the use of the designation
‘‘Gamay Beaujolais’’ on American wine
labels over a period of 10 years. The
current regulations at § 4.28(e)(3) set out
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the rules for the use of the designation
‘‘Gamay Beaujolais’’ for wines bottled
prior to April 9, 2007. However, as set
forth in current § 4.28(e)(3), the
designation ‘‘Gamay Beaujolais’’ may
not be used on labels of American wine
bottled on or after April 9, 2007. While
wines bottled prior to that date may still
bear the designation in accordance with
the transitional rule, TTB does not
believe that it is necessary or useful to
keep the transitional rule in the
regulations. However, TTB seeks
comments on whether that provision
should be kept in the regulations.
e. Generic, semi-generic, and
nongeneric designations of geographic
significance. The regulations prescribing
requirements for labeling wine with
terms that have been found to be
generic, semi-generic, and nongeneric
designations of geographic significance
are currently found in § 4.24. As
described in more detail below, these
regulations have not been updated to
reflect amendments to the IRC in 2006
regarding the use of certain ‘‘semigeneric’’ names; thus, we are proposing
to amend the regulations to reflect those
amendments to the IRC.
The general rule, as stated in current
§ 4.24(c)(1), is that a name of geographic
significance, which is also the
designation of a class or type of wine,
may be used in the designation of only
those wines of the origin indicated by
such name. Examples of these
‘‘nongeneric’’ names (such as
‘‘Spanish,’’ or ‘‘Napa Valley’’), are listed
in § 4.24(c)(2). The exception to this
general rule is where the Administrator
has found a name of geographic
significance to be either ‘‘generic’’ or
‘‘semi-generic.’’
‘‘Generic’’ names are those specified
in current § 4.24(a)(2) (such as
‘‘Vermouth’’ and ‘‘Sake´’’), which are no
longer considered as having geographic
significance but are indicative of a class
or type of wine. A wine may be labeled
with a generic designation regardless of
the place of origin. ‘‘Semi-generic’’
designations (such as ‘‘Madeira’’ and
‘‘Sherry’’) are those names which retain
some geographic significance but which
are also known as the designation of a
class or type of wine. Current section
4.24(b)(1) provides that semi-generic
names may be used to designate wines
of an origin other than that indicated by
the particular geographic name,
provided that the designation is
accompanied by an appellation of origin
indicating the true origin of the wine.
In addition to the general rule set
forth above which restricts the use of
nongeneric names used to designate
wines, current § 4.24(c)(1) provides that
the Administrator may find that certain
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of these nongeneric names are also the
‘‘distinctive’’ designations of specific
wines. A name of geographic
significance is deemed to be a
distinctive designation if it is known to
the U.S. consumer and trade as the
designation of a specific wine of a
particular place or region,
distinguishable from all other wines.
Current section 4.24(c)(3) states that
names such as ‘‘Chambertin,’’
‘‘Liebfraumilch,’’ and ‘‘Lacryma Christi’’
are examples of distinctive designations.
A list of foreign distinctive designations
appears in subpart D of part 12.
Additional examples of foreign
nongeneric names that are not
distinctive designations of wine are
listed in subpart C of part 12.
This proposed rule would codify
these provisions in three separate
sections, proposed sections §§ 4.173
through 4.175.
Proposed § 4.173 defines generic
designations of geographical
significance as ‘‘the name of a class or
type of wine that once had geographic
significance but has been deemed by the
Administrator to have lost any
geographic significance.’’ Also,
paragraph (b) of proposed § 4.173 makes
clear that ‘‘vermouth’’ and ‘‘Sake´’’
comprise the list of generic
designations, and are not merely
examples of such designations.
As mentioned above, current § 4.24(b)
provides that semi-generic designations
may be used to designate wines of an
origin other than that indicated by the
name only if there appears in direct
conjunction therewith an appropriate
appellation of origin disclosing the
name of the true place of origin of the
wine, and if the wine so designated
conforms to the standards of identity, if
any, for such wine contained in the
regulations in part 4, or, if there is no
such standard, to the wine trade’s
understanding of such class or type.
Examples of semi-generic names that are
also type designations for grape wines
are: Angelica, Burgundy, Claret, Chablis,
Champagne, Chianti, Malaga, Marsala,
Madeira, Moselle, Port, Rhine Wine (or
Hock), Sauterne, Haut Sauterne, Sherry,
and Tokay.
In proposed § 4.174, TTB is proposing
substantive changes to the regulations
governing the use of semi-generic
designations on wine labels. These
changes are consistent with changes in
the law, which in turn stem from the
2006 Agreement between the United
States and the European Union (EU) on
Trade in Wine (‘‘the EU Agreement’’).
The EU Agreement addresses a wide
range of issues regarding the
production, labeling, and import
requirements for wine that help to
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establish predictable conditions for
bilateral wine trade.
Under section 5388(c) of the Internal
Revenue Code of 1986 (IRC), 26 U.S.C.
5388(c), a name of geographic
significance, which is also the
designation of a class or type of wine,
is determined to be semi-generic only if
so found by the Secretary of the
Treasury. In the EU Agreement, the
United States made a commitment to
seek to change the legal status of those
names to restrict their use solely to
wines originating in the applicable EU
Member State, with certain exceptions
for ‘‘grandfathered’’ names. The
grandfathered names are: Burgundy,
Chablis, Champagne, Chianti, Claret,
Haut Sauterne, Hock, Madeira, Malaga,
Marsala, Port, Retsina, Rhine, Sauterne,
Sherry, and Tokay.
Shortly thereafter, section 422 of the
Tax Relief and Health Care Act of 2006
(Pub. L. 109–432) amended section 5388
of the IRC (26 U.S.C. 5388) to
implement Article 6 of the EU
Agreement. The effect of this change in
law is to restrict use of the semi-generic
terms pursuant to the EU Agreement.
Article 6.2 of the EU Agreement and
26 U.S.C. 5388 allow a person or his or
her successor in interest using one of
the grandfathered names in the United
States before March 10, 2006, to
continue using the name, provided that
the name is only used on labels for wine
bearing the brand name, or the brand
name and distinctive or fanciful name,
if any, for which the applicable COLA
was issued prior to the date of signature
of the EU Agreement.
In accordance with the EU Agreement
and the relevant changes in U.S. law,
TTB has imposed restrictions on the use
of the semi-generic names and the name
Retsina. Although Retsina is a class of
wine that was not previously recognized
in the TTB regulations or in 26 U.S.C.
5388 as a semi-generic name, under the
terms of the EU Agreement and 26
U.S.C. 5388, it is treated the same as the
semi-generic names.
Under the provisions of the
‘‘grandfather’’ exception, any person or
his or her successor in interest may
continue to use a semi-generic name or
Retsina on a wine label, provided the
semi-generic name or Retsina is used
only on labels for wine bearing the same
brand name, or the same brand name
and a distinctive or fanciful name, if
any, that appear on a COLA issued prior
to March 10, 2006. The grandfather
clause is not available to wines
originating in the EU. The proposed
amendments will implement these
provisions in the part 4 labeling
regulations for the first time.
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Accordingly, proposed § 4.174 defines
a semi-generic designation as a
geographic term which is also the
designation of a class or type of wine
and which has been deemed to have
become semi-generic by the
Administrator. It lists the semi-generic
names and the restrictions on their use,
in accordance with the provisions of 26
U.S.C. 5388. It should be noted that
while the law provides the same
protection to ‘‘Retsina’’ as it does to the
names that are listed as being ‘‘semigeneric,’’ it does not specifically provide
that ‘‘Retsina’’ is a semi-generic name.
TTB believes that this leads to
confusion. Accordingly, TTB is
proposing to amend the regulations to
recognize ‘‘Retsina’’ as a semi-generic
name. It should be further noted that,
while ‘‘Angelica’’ is included as a semigeneric name, it is not subject to the
grandfather provisions under 26 U.S.C.
5388.
ATF Ruling 73–5 held that Spanish
wines bearing labels with semi-generic
designations such as ‘‘Burgundy,’’
‘‘Chablis,’’ ‘‘Sauterne,’’ or ‘‘Rhine’’ do
not meet the requirements of
§ 4.25(a)(3). Because proposed § 4.174(c)
requires that imported wine labeled
with a semi-generic designation
conform to the requirements of the
producing country, and EU regulations
would not allow a wine from Spain to
be called a ‘‘Burgundy,’’ ‘‘Chablis,’’
‘‘Sauterne’’ or ‘‘Rhine,’’ the proposed
rule would supersede ATF Ruling 73–5.
Proposed § 4.175 defines a nongeneric
designation as a name of geographic
significance that has not been found by
the Administrator to be generic or semigeneric. The proposed regulation also
states that, ‘‘A nongeneric name of
geographic significance may be deemed
to be the distinctive designation of a
wine if the Administrator finds that it is
known to the consumer and to the trade
as the designation of a specific wine of
a particular place or region,
distinguishable from all other wines.’’
Other than these clarifying provisions,
the changes in proposed § 4.175 are
editorial in nature.
7. Subpart J—American Grape Variety
Names
Proposed subpart J of part 4 includes
the list of approved names of American
grape varietals, the list of alternate
names of American grape varietals, and
the approval processes for grape varietal
names.
As previously mentioned, proposed
§ 4.157 provides the rules for using the
name of one or more grape varieties as
a type designation for a grape wine.
Proposed § 4.157(e) provides that the
name of a grape variety may be used in
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a type designation for an American wine
only if that name has been approved by
the Administrator. A list of approved
grape variety names appears in
proposed subpart J.
Proposed § 4.191 states how to
petition the Administrator for approval
of a grape variety name. This is largely
consistent with existing § 4.93.
However, TTB is proposing a change in
proposed § 4.191(e) to codify TTB’s
current policy with regard to the
administrative approval of grape variety
names pending future rulemaking.
Current § 4.93 provides that the TTB
Administrator will publish the list of
approved grape variety names in the
Federal Register annually. TTB is
proposing to revise this provision in
proposed § 4.191 to eliminate the
provision for publishing the names in
the Federal Register. Instead, a
complete list of grape variety names
(including those listed in regulations
and those temporarily approved by the
Administrator) may be found on the
TTB website, at https://www.ttb.gov.
While neither the proposed nor the
existing regulations require TTB to
engage in rulemaking before approving
the use of a grape variety name to
designate an American wine, it is TTB’s
preference to go through rulemaking in
order to solicit comments on the use of
proposed varietal names. However,
rulemaking takes time, and TTB does
not wish to delay the use of newly
approved grape varietal names on
American wine labels. Accordingly, it is
TTB’s practice to issue an
‘‘administrative approval’’ for new grape
variety names that meet the criteria set
forth in the regulations. An
administrative approval is temporary in
nature, and means that TTB will allow
the use of the grape variety name as a
type designation on a wine label
pending rulemaking. An administrative
approval may be revoked as a result of
subsequent rulemaking concerning the
grape variety name.
Current § 4.92 provides a list of
alternative grape variety names that may
be used on a temporary basis, in lieu of
the prime name of the grape variety that
is shown in the list. These alternative
grape variety names may be used for
wine bottled before a specified date,
which varies from 1997 to 2012. The
alternative grape variety names in the
list for wine bottled prior to 1997 and
the names in the list for wine bottled
prior to 1999 are not included in
proposed § 4.192. Though absent from
the list in the regulations, the alternative
names authorized for wines bottled
prior to 1997 and 1999 will still be
authorized. However, TTB no longer
believes it is necessary to include this
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transitional rule in the codified
regulations.
D. Proposed Changes Specific to 27 CFR
Part 5 (Distilled Spirits)
In addition to the changes discussed
in section II B of this document that
apply to more than one commodity,
TTB is proposing editorial and
substantive changes specific to the
distilled spirits labeling regulations in
part 5. This section will not repeat the
changes already discussed in section II
B of this document. Accordingly, if a
proposed change is not discussed in this
section, please consult section II B. The
substantive changes that are unique to
part 5 are described below, by subpart.
1. Subpart A—General Provisions
Proposed subpart A includes several
sections that have general applicability
to part 5, including a revised definitions
section, a section that defines the
territorial extent of the regulations,
sections that set forth to whom and to
which products the regulations in part
5 apply, a section that identifies other
regulations that relate to part 5, and
sections addressing administrative items
such as forms and delegations of the
Administrator.
Proposed § 5.1, which provides
definitions of terms used in part 5, has
some changes from the regulatory text
that appears in current § 5.10. In
addition to the proposed amendments
discussed above in section II B of this
document, TTB proposes to modify the
definition of ‘‘age’’ to simplify it and to
make clear that spirits are only aged
when stored in or with oak. The wood
contact creates chemical changes in the
spirits, which is the aging process.
Thus, for example, spirits stored in oak
barrels lined with paraffin are not
‘‘aged.’’
Additionally, TTB proposes to add a
definition of ‘‘American proof,’’ which
cross references the definition of
‘‘proof.’’ The term ‘‘American proof’’ is
used in some circumstances to clarify
that the proof listed on a certificate
should be calculated using the
standards in the part 5 regulations, not
under another country’s standards.
TTB proposes to amend the definition
of ‘‘distilled spirits’’ to codify its
longstanding position that products
containing less than 0.5 percent alcohol
by volume are not regulated as
‘‘distilled spirits’’ under the FAA Act.
TTB also proposes to add a definition
of ‘‘grain,’’ which would define the term
to include cereal grains as well as the
seeds of the pseudocereal grains:
amaranth, buckwheat, and quinoa. TTB
has received a number of applications
for labels for products using
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pseudocereals, and TTB also notes that
the FDA has proposed draft guidance
allowing the seeds of pseudocereals to
be identified as ‘‘whole grains’’ on
labels (see 71 FR 8597, February 17,
2006).
Finally, TTB proposes to define the
term ‘‘oak barrel,’’ which is used with
regard to the storage of certain bulk
spirits. TTB and its predecessor
agencies have traditionally considered a
‘‘new oak container,’’ as used in the
current regulations, to refer to a
standard whiskey barrel of
approximately 50 gallons capacity.
Accordingly, TTB proposes to define an
oak barrel as a ‘‘cylindrical oak drum of
approximately 50 gallons capacity used
to age bulk spirits.’’ However, TTB seeks
comment on whether smaller barrels or
non-cylindrical shaped barrels should
be acceptable for storing distilled spirits
where the standard of identity requires
storage in oak barrels.
2. Subpart B—Certificates of Label
Approval and Certificates of Exemption
of Label Approval, Subpart C—
Alteration of Labels, Adding
Information to Containers, and
Relabeling, and Subpart D—Label
Standards
Proposed subparts B, C, and D are
updated for clarity and contain
substantive changes as described in
section II B of this preamble. The rules
found in proposed §§ 5.42—5.44
regarding relabeling incorporate
portions of, and would supersede, ATF
Ruling 54–592, which deals with
relabeling of distilled spirits with labels
with different trade names, and ATF
Ruling 62–224, which deals with
labeling by wholesalers.
3. Subpart E—Mandatory Label
Information
Proposed subpart E of part 5 sets forth
the information that is required to
appear on a label and prescribes how
that information must appear on the
label. The current regulations governing
mandatory label requirements are found
in subpart D of part 5. Proposed subpart
E is generally structured similarly to the
corresponding sections in the current
regulations.
TTB is proposing to clarify where
mandatory information must appear on
a container. The proposed amendments
will have the effect of increasing
flexibility for placing such information
on a distilled spirits container. Current
§ 5.32(a) requires that the following
appear on the ‘‘brand label’’: The brand
name, the class and type of the distilled
spirits, the alcohol content, and, on
containers that do not meet a standard
of fill, net contents. The term ‘‘brand
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label’’ is defined in current § 5.11
generally as the principal display panel
that is most likely to be displayed,
presented, shown, or examined under
normal retail display conditions.
Further, the definition states that ‘‘[t]he
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.’’
TTB believes that the information that
currently must appear together on the
brand label (or ‘‘principal display
panel’’) is closely related information
that, taken together, conveys important
facts to consumers about the identity of
the product. TTB is proposing, in
proposed § 5.63(a), to allow this
mandatory information to appear
anywhere on the labels, as long as it is
within the same field of vision, which
means a single side of a container
(which for a cylindrical container is 40
percent of the circumference) where all
pieces of information can be viewed
simultaneously without the need to turn
the container. TTB believes that
requiring that this information appear in
the same field of vision, rather than on
the display panel ‘‘most likely to be
displayed, presented, shown, or
examined’’ at retail, is a more objective
and understandable standard,
particularly as applied to cylindrical
bottles. This amendment also eliminates
the requirement that mandatory
information appear parallel to the base
of the container.
Paragraph (b) of current § 5.32
specifies that mandatory information
other than that listed in paragraph (a)
must appear either on the brand label or
on a back label, in effect allowing this
information to appear anywhere on the
container. Paragraph (b) of the proposed
§ 5.63 in effect makes no change in this
requirement by providing that the
mandatory information set forth in that
paragraph must appear ‘‘on a label or
labels anywhere on the container’’ of
each distilled spirits container.
Also with respect to the mandatory
information, TTB proposes to clarify the
existing requirement that, if the alcohol
content is listed in terms of using
degrees of proof, it must appear in direct
conjunction with the mandatory alcohol
content statement. The proposed rule
provides that the statement of proof
must appear immediately adjacent to
the mandatory alcohol content
statement.
The proposed rule still provides that
the mandatory alcohol content
statement must be stated on the label as
a percentage of alcohol by volume. The
proof statement may, but need not,
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appear on the label. In ATF Ruling 88–
1, TTB’s predecessor agency clarified
that the proof must appear in direct
conjunction only once on the label or in
an advertisement, specifically, in the
place where the alcohol by volume
statement is serving as the mandatory
alcohol content statement. Accordingly,
the proposed rule clarifies that
additional statements of proof need not
be accompanied by the alcohol by
volume statement.
TTB also proposes in § 5.65(c) to
provide for an expanded tolerance for
labeling of alcohol content. The current
regulations in 27 CFR 5.37(b) provide a
tolerance for a drop in alcohol content
only, of 0.15 percent alcohol by volume
for most distilled spirits and of 0.25
percent for spirits with a high solids
content or for spirits bottled in small
bottle sizes. The tolerance was
established to allow for variations in
alcohol content that occur due to losses
in alcohol content during the bottling
process.
Industry members have expressed
concern that while improvements in
analytical equipment have made
measuring alcohol content more precise,
the volatility of ethyl alcohol makes it
challenging during bottling to control
alcohol content within the narrow
parameters that are currently
authorized. For example, many distilled
spirits products have a minimum
bottling alcohol content of 40 percent
alcohol by volume. In some cases,
distillers may target their alcohol
content slightly higher than 40 percent,
expecting evaporation of alcohol during
the bottling process. However, in some
instances, the alcohol content does not
drop to the desired 40 percent during
the bottling process. Current TTB
regulations would not allow a product
with, for example, an actual alcohol
content of 40.15 percent alcohol by
volume to be labeled with an alcohol
content of 40 percent alcohol by
volume.
The proposed rule amends the alcohol
content regulations in part 5 to allow for
an expanded alcohol content tolerance.
TTB proposes to expand the alcohol
content tolerance to 0.3 percent alcohol
by volume above or below the labeled
alcohol content.
TTB also proposes to make a similar
amendment to the alcohol content
regulations found in 27 CFR 19.356. The
regulations in part 19 apply to the
operations of distilled spirits plants.
Section 19.356 sets forth tolerances for
alcohol content and fill for bottling
operations, and TTB proposes to expand
the alcohol content tolerances in this
section to mirror those in the proposed
§ 5.65(c). Because this alcohol content
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tolerance is larger than the previously
allowed 0.25 percent for high solids
content or for small bottles, we also
propose to eliminate the stepped
tolerance scheme and provide for the
same tolerance for all distilled spirits.
TTB believes that this proposal would
allow greater flexibility and business
efficiencies for bottlers. We note that
while taxes on distilled spirits are
generally determined on the basis of the
labeled alcohol content of the product,
we believe that the proposal does not
present risks to the revenue because
there likely will be both overproof and
underproof bottles and there is no
economic incentive for intentionally
overproofing bottles. We invite
comments on this issue.
The current regulations in 27 CFR 27
CFR 5.36 allow for various statements as
part of the name and address. The
phrase ‘‘bottled by’’ is simple to
understand—it may be used by the
bottler of the spirits. Similarly, the
phrase ‘‘distilled by’’ may be used only
by the original distiller of the distilled
spirits.
Currently, section 5.36(a)(4) allows a
variety of terms, as appropriate, to be
used by a rectifier of distilled spirits,
including ‘‘blended by,’’ ‘‘made by,’’
‘‘prepared by,’’ ‘‘manufactured by,’’ or
‘‘produced by.’’ Because there is no
longer a rectification tax on distilled
spirits, and thus these terms have lost
their significance under the IRC, some
industry members and consumers are
confused as to when the use of those
terms is appropriate. TTB proposes to
clarify in proposed § 5.66(b)(2) the
meaning of those terms. For example,
the term ‘‘produced by,’’ when applied
to distilled spirits, does not refer to the
original distillation of the spirits, but
instead indicates a processing operation
(formerly known as rectification) that
involves a change in the class or type of
the product through the addition of
flavors or some other processing
activity. TTB solicits comments on
whether the proposed definitions of
these terms are consistent with trade
and consumer understanding.
TTB has received several inquiries
about its existing regulations on labeling
certain whisky products with a State
where distillation occurs. Current
§ 5.36(d) require the State of distillation
to be listed on the label if it is not
included in the mandatory name and
address statement. However, because
the name and address statement may be
satisfied with a bottling statement, there
is no way to know, simply by reviewing
a proposed label, whether distillation
actually occurred in the same State as
the bottling location.
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Accordingly, proposed § 5.66(f) would
provide that the State of original
distillation for certain whisky products
must be shown on the label in at least
one of the following ways:
• By including a ‘‘distilled by’’ (or
‘‘distilled and bottled by’’ or any other
phrase including the word ‘‘distilled’’)
statement as part of the mandatory name
and address statement, followed by a
single location. This means that a
principal place of business or a list with
multiple locations would not suffice;
• By including the name of the State
in which original distillation occurred
immediately adjacent to the class or
type designation (such as ‘‘Kentucky
Bourbon whisky’’), as long as
distillation and any required aging
occurred in that State; or
• By including a separate statement,
such as ‘‘Distilled in [name of State].’’
The TTB regulations set forth certain
rules for how age statements may appear
on labels. TTB proposes to update the
rule, currently found in § 5.40(d), which
states that age, maturity, or similar
statements may not appear on neutral
spirits (except for grain spirits), gin,
liqueurs, cordials, cocktails, highballs,
bitters, flavored brandy, flavored gin,
flavored rum, flavored vodka, flavored
whisky, and specialties, because such
statements are misleading. TTB has seen
recent growth in the number of distilled
spirits products, such as gin, being
stored in oak containers. However, the
prohibition in the current regulations
means that a producer cannot use age
statements to inform the public how
long its product has been stored in oak
containers, and TTB has approved
labels using terms such as ‘‘finished’’ or
‘‘rested’’ for these types of products.
TTB believes that consumers should be
able to make their own determinations
on how the aging would affect the
product, and that age statements would
provide truthful information to
consumers. Accordingly, TTB proposes
to allow age statements on all spirits
except for neutral spirits (other than
grain spirits, which may contain an age
statement). The revision appears at
proposed § 5.74(e). Proposed § 5.74
incorporates and supersedes ATF
Ruling 93–3, which exempts grappa
from the mandatory age statement for
brandies aged less than four years.
Finally, TTB proposes to supersede
Revenue Ruling 69–58, which deals
with rules for age statements that have
been incorporated in the regulations.
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4. Subparts F, G and H––Restricted and
Prohibited Labeling Practices, and
Labeling Practices That Are Prohibited
if They Are Misleading
As described in section II B of this
document, the current regulations set
forth the prohibited labeling practices in
a single section, § 5.42. In order to make
it easier to find the relevant regulation
and to improve readability, TTB
proposes to separate these practices into
three subparts––one for practices for
which there are certain rules, one for
practices that are prohibited in all
instances, and one for practices that are
prohibited only if misleading.
In addition to changes in provisions
that apply to all three of the
commodities, which are discussed in
section II B of this preamble, proposed
§ 5.87 prescribes rules for the use of the
terms ‘‘barrel proof,’’ ‘‘cask strength,’’
‘‘original proof,’’ ‘‘original barrel proof,’’
‘‘original cask strength,’’ and ‘‘entry
proof’’ on distilled spirits labels. The
proposed text incorporates the holding,
set forth in ATF Ruling 79–9 that the
terms ‘‘original proof,’’ ‘‘original barrel
proof,’’ and ‘‘entry proof,’’ when
appearing on a distilled spirits product
label, indicate that the proof of the
spirits entered into the barrel and the
proof of the bottled spirits are the same.
The ruling further held that the term
‘‘barrel proof’’ appearing on a distilled
spirits label indicates that the bottling
proof is not more than two degrees
lower than the proof established at the
time the spirits were gauged for tax
determination. The proposed
regulations update the description of the
term ‘‘barrel proof’’ to take into account
changes in the operation of distilled
spirits plants because of the Distilled
Spirits Tax Revision Act of 1979. The
reference to the time of tax
determination is no longer the
applicable standard under the current
tax determination system. Since the
term ‘‘barrel proof’’ is intended to
indicate that the spirit is approximately
the same proof as when it is dumped
from the barrel, the proposed
regulations state that the term may be
used on a label when the bottling
alcohol content (proof) of distilled
spirits is not more than two degrees of
proof lower than the proof of the spirit
when the spirit was dumped from the
barrel. TTB notes that it rarely sees such
terms on distilled spirits labels and
specifically seeks comments on whether
they still have relevance and provide
meaningful information to the consumer
and whether TTB should regulate their
use on labels.
Proposed § 5.88 sets forth rules for the
use of the terms ‘‘bottled in bond,’’
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‘‘bond,’’ ‘‘bonded,’’ or ‘‘aged in bond,’’
or other phrases containing these or
synonymous terms. The use of these
terms was originally restricted to certain
products under the Bottled in Bond Act
of 1897 (29 Stat. 626). The Bottled in
Bond Act was intended to provide
standards for certain spirits that would
inform consumers that the spirits were
not adulterated. Treasury Department
officers monitored bonded distilled
spirits plants. The Bottled in Bond Act
was repealed by the Distilled Spirits Tax
Revision Act of 1979 (see title VIII,
subtitle A, Public Law 96–39, 93 Stat.
273). TTB’s predecessor agency, ATF,
decided to maintain the rules
concerning ‘‘bottled in bond’’ and
similar terms, because consumers
continued to place value on these terms
on labels. Proposed § 5.88 maintains the
requirements for the use of ‘‘bottled in
bond’’ and similar terms and
reorganizes them for clarity. Imported
spirits may use ‘‘bottled in bond’’ and
similar terms on labels when the
imported spirits are produced under the
same rules that would apply to domestic
spirits.
In order to maintain parity between
whisky that is aged and vodka and gin,
which do not undergo traditional aging,
vodka and gin are required to be stored
in wooden containers in order to use
‘‘bond’’ or similar terms, but the wood
containers must be coated or lined with
paraffin or another substance to prevent
the vodka or gin from coming into
contact with the wood. TTB seeks
comment on whether it should
eliminate the requirement that bonded
vodka or gin be stored in wooden
containers. TTB rarely sees ‘‘bonded’’
vodka or gin; ‘‘bond’’ and similar terms
are most frequently used on labels of
whisky. Commenters may also wish to
opine on whether TTB should maintain
any special standards for the use of
‘‘bonded’’ or similar terms, since all
domestic distilled spirits products are
now bottled on bonded premises.
In addition, proposed § 5.89 would set
forth new rules for the use of multiple
distillation claims, such as ‘‘double
distilled’’ or ‘‘triple distilled.’’ Current
regulations, at § 5.42(b)(6), provide that
such claims are allowable if they are
truthful statements of fact and further
provide that the terms ‘‘double
distilled’’ or ‘‘triple distilled’’ shall not
be permitted on labels of distilled spirits
if the second or third distillation is ‘‘a
necessary process for production of the
product.’’ TTB is regularly asked for
guidance on the meaning of this
regulation and responds on a case-bycase basis depending on the relevant
specific facts. Although TTB policy is
clear that the distillation steps necessary
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to meet a product’s standard of identity
would be considered the first
distillation, TTB has not set forth a
policy on how additional distillations
may be claimed or counted where an
industry member intends to use a
multiple distillation claim. TTB is
proposing in this rulemaking, at
proposed § 5.89, to define a distillation
as a single run through a pot still or one
run through a single distillation column
of a column (reflux) still. TTB believes
that this definition is consistent with
what consumers understand the terms
to mean and also believes that this
meaning most fully informs consumers
as to the identity and quality of the
distilled spirits product. TTB
specifically seeks comment on this
proposed meaning of distillation and
proposed method for counting multiple
distillations.
Proposed § 5.90 sets forth rules for the
use on distilled spirits labels of terms
related to Scotland. Such rules currently
appear only in the regulatory sections
related to product standards of identity
and class and type, at current
§§ 5.22(k)(4) and 5.35, respectively. The
proposed provision retains the current
rule set forth at current § 5.22(k)(4), that
the words ‘‘Scotch,’’ ‘‘Scots,’’
‘‘Highland,’’ or ‘‘Highlands’’ and similar
words connoting, indicating, or
commonly associated with, Scotland
may be used only on a product wholly
produced in Scotland, but moves this
rule to the provisions on restricted
labeling practices in the new subpart F.
However, regardless of where the
finished products are produced, the
term ‘‘Scotch Whisky’’ would not be
prohibited from appearing on the label
in the statement of composition for
distilled spirits specialty products that
use Scotch Whisky or in the statement
of composition on the label of Flavored
Scotch Whisky. (However, even though
the finished product may be produced
anywhere, the Scotch Whisky
component must continue to be made in
Scotland under the rules of the United
Kingdom.) In addition, proposed
§ 5.90(b) clarifies (in accordance with
current regulations as well as proposed
§ 5.127) that phrases related to
government supervision may be allowed
only if required or specifically
authorized by the regulations of the
United Kingdom, and supersedes
Revenue Ruling 61–15, which applied
that rule to specific language on labels
of Scotch whisky bottled in the United
States. If this proposed provision is
included in the final rule, the 1961
ruling would be superseded in its
entirety.
Proposed § 5.91 sets forth rules for the
use of the term ‘‘pure’’ on distilled
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spirits labels, containers, and packaging.
This rule currently appears in
§ 5.42(b)(5) and provides that the term
‘‘pure’’ may not be used unless it is a
truthful representation about a
particular ingredient, it is part of the
name of a permittee or retailer for whom
the spirits are bottled, or it is part of the
name of the permittee who bottled the
spirits.
5. Subpart I—Standards of Identity for
Distilled Spirits
TTB is proposing amendments to the
standards of identity for distilled spirits
that are intended to clarify the classes
and types of distilled spirits. TTB also
is proposing to insert charts into the
regulatory text to make the relationship
between classes and types, and the
standards for each, easier to understand
and apply. Throughout the standards of
identity, TTB proposes to identify
alcohol content in terms of alcohol by
volume as opposed to degrees of proof.
TTB proposes to clarify, in § 5.141,
that the standards of identity apply to a
finished product without regard to
whether an intermediate product is used
in the manufacturing process. This
means that the intermediate product is
treated as a mixture for the convenience
of the manufacturer, but determinations
as to the classification and labeling of
the product will be made without regard
to the fact that the elements of the
intermediate product were first mixed
together in the intermediate product. In
the case of distilled spirits specialty
products, TTB currently treats
intermediate products as ‘‘natural
flavoring materials’’ when they are
blended into a product, for the purpose
of disclosure as part of a truthful and
adequate statement of composition. TTB
has seen changes in the alcohol
beverage industry and in various
formulas and believes that treating
intermediate products as natural
flavoring materials does not provide
adequate information to consumers, as
required by the FAA Act. Accordingly,
TTB proposes to clarify that blending
components such as distilled spirits and
wines together first in an ‘‘intermediate
product’’ is the same as adding the
ingredients separately for purposes of
determining the standard of identity of
the finished product. Additionally, TTB
proposes to change its policy with
regard to statements of composition for
specialties to require the disclosure of
elements of the intermediate product
(including spirits, wines, flavoring
materials, or other components) as part
of the statement of composition.
Some distilled spirits products may
conform to the standards of identity for
more than one class. Consistent with
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longstanding policy, TTB proposes to
clarify, in § 5.141(b)(3), that such a
product may be designated with any
class designation to which the product
conforms. For example, a vodka with
added natural orange flavor and sugar
bottled at 45 percent alcohol by volume
may meet the standard of identity for a
flavored spirit or for a liqueur.
Accordingly, the product may be
designated as ‘‘orange flavored vodka’’
or ‘‘orange liqueur’’ at the option of the
bottler or importer. Under current
policy, TTB would not allow a product
to be designated on a single label as
both ‘‘orange flavored vodka’’ and
‘‘orange liqueur,’’ because TTB views it
as misleading for a label to bear two
different class designations. TTB seeks
comments on whether the TTB
regulations should permit a distilled
spirits label to bear more than one class
designation if the product conforms to
the standards of identity for more than
one class.
The following proposed provisions
relate to the standards of identity for
distilled spirits products:
Proposed § 5.142 sets forth the
standards for neutral spirits. Current
§ 5.22(a) states that neutral spirits are
distilled spirits produced from any
material at or above 190° proof and, if
bottled, bottled at not less than 80ß
proof. Further, ‘‘vodka’’ is a neutral
spirit so distilled, or so treated after
distillation with charcoal or other
materials, as to be without distinctive
character, aroma, taste, or color.
Proposed § 5.142 would clarify several
factors related to designating a neutral
spirits product, factors that typically
have been taken into account on a caseby-case basis. First, TTB is proposing to
provide that the source material of the
neutral spirits may be specifically
included in the designation on the label
of the product. Thus, the bottler would
have the option of labeling a product as
‘‘Apple Neutral Spirits’’ (in addition to
‘‘neutral spirits distilled from apples’’ as
the required commodity statement) or
‘‘Grape Vodka,’’ (in addition to ‘‘vodka
distilled from fruit’’ as the required
commodity statement) as long as such
statements accurately describe the
source materials.
TTB also is proposing to codify the
holding set forth in Revenue Ruling 55–
740, that neutral spirits, other than grain
spirits, that are stored in wood barrels
become specialty products and must be
labeled in accordance with the
appropriate rules for such products set
forth in proposed § 5.156. Because
storage in wood barrels renders the
spirits not neutral, TTB’s predecessor
agency determined that consumers
would be misled if spirits, other than
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grain spirits, were stored in wood
barrels and then labeled as neutral
spirits or vodka. Finally, the proposed
regulations include allowable
designations for neutral spirits labels.
TTB also is proposing to amend the
standard of identity for vodka, a type of
neutral spirit, to codify the holdings in
several past rulings: Ruling 55–552,
which holds that vodka may not be
stored in wood; Ruling 76–3, which
explains that vodka treated with
charcoal may be labeled as ‘‘charcoal
filtered’’; and Ruling 56–98 and Ruling
97–1, which allow treatment with 2
grams per liter of sugar and trace
amounts (1 gram per million) of citric
acid and sugar. In addition, TTB is
specifically seeking comment on
whether the requirement that vodka be
without distinctive character, aroma,
taste, or color should be retained and, if
this requirement is no longer
appropriate, what the appropriate
standards should be for distinguishing
vodka from other neutral spirits.
Proposed § 5.143 sets forth the
standards for whiskies. TTB proposes to
clarify that the word whisky may be
spelled ‘‘whisky’’ or ‘‘whiskey.’’ TTB
also proposes to require that, where a
whisky meets the standard for one of the
types of whiskies, it must be designated
with that type name, except that
Tennessee Whisky may be labeled as
Tennessee Whisky even if it meets the
standards for one of the type
designations. Currently, TTB allows the
term ‘‘Tennessee Whisky’’ to appear on
labels, even if the product meets a more
specific standard of identity, such as for
bourbon whisky.
In the current regulations, when a
whisky meets the standard for a type of
whisky, it is unclear whether the label
must use that type designation or may
use the general class ‘‘whisky’’ on the
label. TTB believes that consumers
expect that the type designation will
appear on the container when it applies.
Additionally, historical documents
indicate that TTB’s predecessor agencies
classified whiskies with the type
designation that applied, and required
that type to be the label designation. For
example, in January of 1937, the Federal
Alcohol Administration stated that
‘‘Where a product conforms to the
standard of identity for ‘Straight
Bourbon Whiskey’ it must be so
designated and it may not be designated
simply as ‘Whiskey.’’’ See FA–91, ‘‘A
Digest of Interpretations of Regulations
No. 5 Relating to Labeling and
Advertising of Distilled Spirits,’’ p. 5.
In order to make the types of whiskies
easier to understand, TTB proposes
inserting a chart in the regulations that
would set forth the types of whisky that
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are not distinctive products of other
countries, the source material from
which the whisky may be produced,
whether storage is required, the proof at
which the whisky may be stored, and
whether neutral spirits and harmless,
coloring, flavoring, or blending
materials may be used. Among other
things, the proposed rule will codify in
the regulations for the first time TTB’s
current policy, as set forth in the
Distilled Spirits Beverage Alcohol
Manual (TTB P 5110.7), that coloring,
flavoring, or blending materials may not
be added to products designated as
‘‘bourbon whisky.’’
TTB also proposes to provide for a
new type designation of ‘‘white whisky
or unaged whisky.’’ TTB has seen a
marked increase in the number of
products on the market that are distilled
from grain but are unaged or that are
aged for very short periods of time.
Under current regulations, unaged
products would not be eligible for a
whisky designation (other than corn
whisky) and would have to be labeled
with a distinctive or fanciful name,
along with a statement of composition.
In order to provide guidance for these
products, TTB proposes that products
that are either unaged (so they are
colorless) or aged and then filtered to
remove color should be designated as
‘‘white whisky’’ or ‘‘unaged whisky,’’
respectively. This proposal represents a
change in policy, because currently all
whiskies (except corn whisky) must be
aged, although there is no minimum
time requirement for such aging. TTB
believes that currently some distillers
may be using a barrel for a very short
aging process solely for the purpose of
meeting the requirement to age for a
minimal time. Consequently, TTB is
proposing the new type designation of
‘‘white whisky or unaged whisky’’ and
specifically requests comments on this
new type and its standards.
In addition, TTB proposes to maintain
the definitions for Scotch Whisky,
Canadian Whisky, and Irish Whisky
without change, but seeks comment on
whether these standards should be
clarified to indicate that certain
standards for these types may differ
from U.S. standards for whisky. For
example, Scotch Whisky is whisky
produced in Scotland in accordance
with United Kingdom laws and
regulations, which do not require that
whisky be aged in new charred oak
barrels. TTB policy is to allow whisky
labeled as Scotch whisky to be
produced under United Kingdom
standards, and TTB seeks comment on
whether, and what, additional
clarifications in the regulations would
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improve understanding of the TTB
labeling regulations.
Proposed § 5.144 generally restates
the current standards for gin, but, in
order to make the use of other aromatics
optional, would change the requirement
that gin be made with juniper berries
and other aromatics. Also, TTB
proposes to remove the designation
‘‘Geneva gin (Hollands gin)’’ from the
list of ‘‘distilled gin’’ designations
because that designation usually refers
to gin that has been stored in wooden
containers, which is not necessarily
synonymous with the description
‘‘distilled gin.’’
Proposed § 5.145 sets out the
standards for brandy, with minor
clarifying changes. One of the proposed
amendments would allow the use of the
terms ‘‘Slivovitz’’ and ‘‘Kirschwasser’’
as optional designations for plum
brandy and cherry brandy, respectively.
Additionally, TTB proposes to
incorporate Armagnac, Brandy de Jerez,
and Calvados into the regulations as
types of brandy. These products are
distinctive products of France, Spain,
and France, respectively, and they are
recognized by TTB under current
policy.
Proposed § 5.148 is a new section that
provides for a class called ‘‘agave
spirits.’’ Currently, spirits that are
distilled from agave are considered
distilled spirits specialties, and the
labels of the products must contain a
statement of composition, such as
‘‘Spirits Distilled from Agave.’’ Because
TTB’s standards of identity are generally
distinguished by agricultural
commodity, TTB believes it would be
useful for consumers and for industry
members if TTB created a class of spirits
for spirits that are distilled from agave.
TTB proposes that the mash for agave
spirits be comprised of at least 51
percent agave and that it may contain
up to 49 percent sugar (weight before
the addition of water). As proposed,
Tequila, which currently appears as a
class of distilled spirits in the TTB
regulations and Mezcal, which does not
currently appear in the TTB regulations
but which is protected under the North
American Free Trade Agreement, would
be types of agave spirits produced in
Mexico in accordance with the laws and
regulations of Mexico. This would not
require a change of labels of Tequila or
Mezcal because these type designations
may appear alone on the label without
the class name ‘‘agave spirits.’’
Proposed § 5.149 sets forth a new
standard of identity for Absinthe (or
Absinth). Absinthe products are
distilled spirits products produced with
herbs, including wormwood, fennel,
and anise. Under Industry Circular
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2007–5, certain absinthe-type products
are now allowed in the U.S. market, but
are generally classified as distilled
spirits specialty products or liqueurs (if
they meet the standard of identity for a
liqueur). Under current TTB policy, the
word ‘‘Absinthe’’ may not stand alone
on the label; therefore, labels use multiword names that include the word
‘‘Absinthe’’ (such as ‘‘Absinthe Vert’’ or
‘‘Absinthe Superieure’’). TTB believes
that consumers understand what
absinthe is and that it is appropriate to
set out a standard of identity for
absinthe. The proposed standard
reminds the reader that the products
must be thujone-free under FDA
regulations. Based on current limits of
detection, a product is considered
‘‘thujone-free’’ if it contains less than 10
parts per million of thujone. Finally,
TTB proposes to supersede Industry
Circular 2007–5 in its entirety, without
incorporating the requirement that all
wormwood-containing products
undergo analysis by TTB’s laboratory
before approval. TTB will verify
compliance with FDA limitations on
thujone through marketplace review and
distilled spirits plant investigations,
where necessary.
Proposed § 5.150 sets out the
standards for cordials and liqueurs.
Among other changes, TTB proposes to
incorporate into this section the holding
in Revenue Ruling 61–71, which
prohibits the terms ‘‘distilled,’’
‘‘compound,’’ or ‘‘straight’’ from
appearing on labels for cordials and
liqueurs. These terms imply original
distillation; thus, they are deemed to be
misleading on labels for cordials and
liqueurs.
Certain cordials or liqueurs may be
designated with a name known to
consumers as referring to a cordial or
liqueur and therefore need not use the
word ‘‘cordial’’ or ‘‘liqueur’’ as part of
their designation. Thus, pursuant to
TTB’s Beverage Alcohol Manual (TTB P
5110.7), several cordials and liqueurs—
specifically, Kummel, Ouzo, Anise,
Anisette, Sambuca, Peppermint
Schnapps, Triple Sec, Curac¸ao,
Goldwasser, and Cre`me de
[predominant flavor]—currently may be
designated by those names on the labels
of those products. TTB proposes to
codify this policy by adding these
names as type designations under
proposed § 5.150.
Proposed § 5.151 would establish
‘‘flavored spirits’’ as a revised and
expanded class of distilled spirits
consisting of spirits conforming to one
of the standards of identity (the ‘‘base
spirits’’) to which have been added
nonbeverage flavors, wine, or
nonalcoholic natural flavoring
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materials, with or without the addition
of sugar, and bottled at not less than 30
percent alcohol by volume (60 proof).
This is a clarification of current TTB
policy, which is that you may not add
additional spirits to a base spirit in a
flavored spirits product, even if the
additional spirits are mixed into an
intermediate product.
The TTB regulations currently list
flavored brandy, flavored gin, flavored
rum, flavored vodka, and flavored
whisky as the class designations under
Class 9. Other types or classes of
distilled spirits that are flavored
currently are treated as distilled spirits
specialty products and the labels for
such products must contain a statement
of composition. While TTB allows for
any spirit to appear as part of a truthful
statement of composition, TTB does not
believe that consumers perceive a
distinction between, for example
‘‘Orange Flavored Tequila’’—which is
how a flavored spirit would be
designated under the proposed rule—
and ‘‘Tequila with Orange Flavor’’—
which is how the statement of
composition would appear for a
distilled spirits specialty product. TTB
therefore believes it should allow any
type of base spirit to be flavored in
accordance with the flavored spirits
standard instead of just brandy, gin,
rum, vodka, and whisky, as permitted
by the current regulations. Accordingly,
proposed § 5.151 provides a class of
flavored spirits that would allow any
base spirit to be flavored when made in
accordance with the standards of
identity set forth in the regulation. TTB
proposes to maintain a minimum
alcohol content at bottling of 30 percent
(60° proof) for this revised and
expanded class. Flavored spirits may
contain added wine. TTB proposes to
maintain the requirement that wine
content above 21⁄2 percent (or 121⁄2
percent for brandy) must be disclosed
on a label.
One new provision that TTB
addresses in the proposed text regarding
standards of identity is the use of the
term ‘‘diluted.’’ As set forth in ATF
Ruling 75–32, TTB currently requires
that distilled spirits bottled at below the
specified alcohol content for that
particular class be designated on the
label as ‘‘diluted’’ in direct conjunction
with the statement of class and type to
which it refers. For example, under the
standard of identity for vodka set forth
at current § 5.22(a), vodka must be
bottled at ‘‘not less than 80 proof.’’ As
a result, a vodka bottled at 60 proof
must bear the statement ‘‘diluted
vodka’’ on the label. TTB proposes, in
§ 5.153, to incorporate this policy into
the regulations by establishing a class of
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spirits known as ‘‘diluted spirits.’’ This
applies to products that would
otherwise meet one of the class or type
designations specified in subpart I
except that it does not meet the
minimum alcohol content, usually
because of reduction of proof through
the addition of water. Although the
ruling states that the word ‘‘diluted’’
must be readily legible and as
conspicuous as the statement of class to
which it refers and in no case smaller
than 8-point Gothic caps (except on
small bottles), TTB proposes to require
that the word ‘‘diluted’’ appear in
readily legible type at least half the size
of the class and type designation to
which it refers. For example, but for the
fact that a product is 70 proof, it would
be eligible to be designated as ‘‘Vodka.’’
Instead it must be designated as
‘‘Diluted Vodka’’.
Certain geographical designations
may be used on distilled spirits as, or as
part of, the designation on the label. In
proposed § 5.154, TTB proposes to
change the rules for geographical
designations currently found in § 5.22(k)
and (l). Specifically, TTB proposes to
provide that geographical names that are
not generic may be used on products
made outside of the place indicated by
the name, if TTB determines that the
name represents a type of distilled
spirits and if the designation includes a
qualifier such as ‘‘type’’ or ‘‘style’’ or a
statement indicating the true place of
production.
For example, Oje´n is a town in Spain,
and ‘‘Aguardiente de Oje´n’’ is a distilled
spirits product associated with Spain.
Thus, the current and proposed
regulations provide that ‘‘Ojen’’ is an
example of a distinctive type of distilled
spirits with a geographical name that
has not become generic. If Ojen were
made in the United States, it could be
designated as ‘‘Ojen type’’ or ‘‘American
Ojen’’ or with another similar phrase.
TTB also proposes to list specific
products that are associated with a
particular place that have become
generic. These products could be
manufactured in any place, and the
label would not be required to bear a
qualifier such as ‘‘type’’ or ‘‘style’’ or
any other dispelling statement. An
example of a name that continues to be
considered generic is ‘‘Aquavit.’’
Although this name was traditionally
associated with the Scandinavian
countries, TTB believes that by usage
and common knowledge, this name has
lost its geographical significance to the
extent that it has become generic. Thus,
TTB proposes to list Aquavit, along with
Zubrovka, Arrack, Kummel, Amaretto,
and Ouzo, as examples in this category.
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Pursuant to Article 2.13.2 of the
United States-Korea Free Trade
Agreement, the United States agreed to
recognize Andong Soju as a distinctive
product of the Republic of Korea. See
TTB Ruling 2012–3. Accordingly, TTB
is proposing to add Andong Soju to the
list of geographic names that have not
become generic and that may not be
used on distilled spirits made in any
place outside the particular place or
region indicated in the name. TTB is
proposing to supersede TTB Ruling
2012–3.
In addition, TTB proposes to list
Habanero, Sambuca, and Goldwasser as
a category of designations that have not
become generic, and could only be used
on products produced outside of the
places indicated by the names if the
label contains a phrase clearly
indicating the place of production.
Examples of this usage include
‘‘American Sambuca’’ and ‘‘Sambuca—
Product of the United States.’’ This
proposal is not intended to change
policy; current regulations in § 5.22(l)(2)
provide Habanero as an example of a
name for distilled spirits that are a
distinctive product of a particular place,
and the Distilled Spirits Beverage
Alcohol Manual (TTB P 5110.7)
recognizes Sambuca and Goldwasser as
distinctive designations. TTB solicits
comments addressing whether or not
these terms should still be recognized as
being distinctive of a particular
geographical origin.
Under the current § 5.35(a), products
that do not meet the definition of one
of the specified classes or types of
distilled spirits must be designated in
accordance with trade and consumer
understanding or, if no such
understanding exists, by a distinctive or
fanciful name followed by a truthful and
adequate statement of composition.
Proposed § 5.156 sets forth a new
specific designation for a class of spirits
called ‘‘distilled spirits specialty
products.’’ By setting forth this new
class, TTB intends to clarify the
treatment of distilled spirits specialty
products and the labeling requirements
that apply to such products. Products
within this class are not required to be
labeled with the designation ‘‘distilled
spirits specialty product.’’ Instead, the
distinctive or fanciful name together
with the statement of composition acts
as the product designation on the label.
This classification would not make
any substantive change except for
labeling requirements for cocktails,
highballs, and similar specialty
products. The proposal would eliminate
the rule allowing for a limited statement
of composition consisting of only the
spirits used in the manufacture of such
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products. Over the years, TTB has seen
an increase of cocktails recognized in
bartenders’ recipe books as the industry
continued to innovate. Consumers are
not fully informed when a label has
only a cocktail name and the component
spirit(s) because of the vast array of
cocktails. Accordingly, TTB proposes to
require a full statement of composition
on such specialty products, and
proposes to clarify that a cocktail name
may be used as the distinctive or
fanciful name on a distilled spirits
specialty product.
Certain ingredients or processes can
change the class and type of a distilled
spirit. Proposed § 5.155 sets forth the
rule for alteration of class and type as
well as exceptions to the general rule
regarding alteration. Much of this
section is found in the current 27 CFR
5.23, but TTB proposes to add wine,
when used in Canadian whisky in
accordance with Canadian law, as an
exception to the general rule to make it
clear that Canadian producers may add
more than 2 and one half of one percent
wine without altering the class from
whisky. TTB has also had a number of
requests from industry members for
guidance on labeling products that are
stored in two different types of barrels.
For example, whisky must be stored in
oak containers, in accordance with the
standard of identity. When a producer
stores the whisky in oak containers and
then stores it in a different type of
container, such as a maple barrel, the
spirit becomes a distilled spirits
specialty product and must be labeled
with a statement of composition, such
as ‘‘Bourbon Whisky finished in maple
barrels.’’ TTB proposes, in § 5.155(c), to
add this requirement to the regulations.
Proposed § 5.166 sets forth the rules
for the statement of composition as
discussed in section II B of this
document.
6. Subpart J—Formulas
The current regulations in subpart C
of part 5 set forth requirements for
formulas for distilled spirits. In the
present rulemaking, TTB proposes to
maintain the formula requirements with
minor changes to reflect current policy
as set forth in TTB Industry Circular
2007–4. However, TTB believes there
may be formula requirements that no
longer serve a labeling purpose. TTB
seeks specific comments on whether
certain formula requirements should be
eliminated and the rationale for such a
change. TTB may address these issues
in the final rule or in a separate
rulemaking document.
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7. Subpart K—Standards of Fill and
Authorized Container Sizes
Distilled spirits containers must be
filled with certain specified amounts of
the product. Additionally, the current
regulations prescribe a maximum
headspace for bottles so that consumers
are not misled with regard to the
quantity of spirits in the bottle. Over the
years, alcohol beverage producers have
greatly increased the number of brands
and packages in the marketplace. TTB
believes that if a product is bottled in a
container that conforms to a standard of
fill and is clearly marked with the net
contents, the consumer is provided with
sufficient information as to the amount
of spirits in the bottle.
Currently, § 5.46(b) imposes a
headspace requirement that applies to
standard liquor bottles, and § 5.46(c)
provides design requirements for
standard liquor bottles. Pursuant to
§ 5.46(d), distinctive liquor bottles may
be exempted from these requirements. A
bottler or importer who intends to use
a distinctive liquor bottle is currently
required to apply for and obtain
authorization for such use. Proposed
§ 5.202 incorporates these provision
without substantive change.
TTB seeks comments on whether it
should eliminate the current headspace
and certain design requirements. TTB
believes that eliminating the application
requirement for distinctive liquor
bottles would create efficiencies for both
TTB and industry members by reducing
application and review requirements.
However, TTB is specifically interested
in comments regarding any deleterious
effect that eliminating the requirement
might have on consumers.
E. Proposed Changes Specific to 27 CFR
Part 7 (Malt Beverages)
In addition to the changes discussed
above that apply to all commodities,
TTB is proposing additional editorial
and substantive changes specific to the
malt beverage labeling regulations in 27
CFR part 7. This section will not repeat
the changes already discussed in section
II B of this preamble. Accordingly, if a
proposed change is not discussed in this
section, please consult section II B. The
substantive changes that are unique to
part 7 are described below, by subpart.
1. Subpart A—General Provisions
Proposed subpart A includes several
sections that have general applicability
to part 7, including a revised definitions
section, a section that defines the
territorial extent of the regulations,
sections that set forth to whom and
which products the regulations in part
7 apply, a section that identifies other
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regulations that relate to part 7, and
sections addressing administrative items
such as forms and delegations of the
Administrator.
a. Definitions. Proposed § 7.1, which
covers definitions of terms used in part
7, is largely consistent with the current
regulatory text that appears in § 7.10,
with some amendments in addition to
those discussed in section II B of this
preamble (relating to parts 4, 5 and 7).
The proposed text adds definitions for
the terms ‘‘keg collar’’ and ‘‘tap cover’’
consistent with a proposed amendment,
discussed later in this document, to
allow mandatory label information to
appear on keg collars and tap covers,
subject to certain conditions. The
proposed text amends the definition of
the term ‘‘bottler’’ and removes the
definition of ‘‘packer,’’ consistent with
proposed amendments that would
remove any distinction in name and
address statements between ‘‘bottling’’
in containers of a capacity of one gallon
or less and ‘‘packing’’ in containers in
excess of one gallon.
The proposed text retains the current
definition of ‘‘malt beverage,’’ which is
based on the statutory definition set
forth in the FAA Act at 27 U.S.C.
211(a)(7), and updates the cross
reference to standards applying to the
use of processing methods and flavors.
Prior to the issuance of TTB Ruling
2008–3, TTB and its predecessor agency
had provided guidance on the minimum
quantities of malted barley and hops
required to be used in the production of
malt beverages. In 1994, the Bureau of
Alcohol, Tobacco and Firearms (ATF)
issued ATF Compliance Matters 94–1,
which provided that beers fermented
from at least 25 percent malted barley
(calculated as the percentage of malt, by
weight, compared to the total dry weight
of all ingredients contributing
fermentable extract to the base product)
and made with at least 71⁄2 pounds of
hops (or the equivalent thereof in hop
extracts or hop oils) per 100 barrels
were ‘‘malt beverages’’ under the FAA
Act.
In TTB Ruling 2008–3, TTB
announced that it was reconsidering
this prior guidance, based on the fact
that neither the FAA Act nor the
implementing regulations in 27 CFR
part 7 prescribed minimum standards
for the amount of malted barley used in
production of a malt beverage. The
ruling also noted that TTB had
determined that a beer containing a
much lower amount of malted barley
(one percent of the total dry weight of
all ingredients contributing fermentable
extract to the product) conformed to the
definition of a ‘‘malt beverage.’’ The
ruling stated that brewers and importers
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should contact TTB’s Advertising,
Labeling, and Formulation Division
with questions as to whether a
particular product falls within the
definition of a ‘‘malt beverage’’ and
therefore is subject to the COLA and
other requirements of the FAA Act.
In this rulemaking document, TTB is
not proposing to set forth any minimum
standards for the quantity of malted
barley or hops used in the production of
malt beverages. TTB solicits comments
from all interested parties on whether
the regulations in part 7 should address
this issue.
b. Prohibitions and jurisdictional
limits of the FAA Act. Proposed § 7.3,
which sets forth the general
requirements and prohibitions under 27
U.S.C. 205(e), repeats the essential
elements of the prohibitions found in
current § 7.20 and the misbranding
provisions found in current § 7.21.
Because the term ‘‘misbranding’’ is not
used consistently in current part 7,
proposed § 7.3 would replace that term
with the requirement that malt beverage
containers be labeled in accordance
with the regulations in part 7.
Proposed § 7.4 sets forth the
jurisdictional limits found in 27 U.S.C.
205. As referenced earlier, the first
prohibition in 27 U.S.C. 205(e) applies
to any persons engaged in business as a
brewer, an importer, or a wholesaler of
malt beverages, and it prohibits the sale
or shipment or delivery for sale or
shipment, or other introduction in
interstate or foreign commerce, or
receipt therein, or removal from
customs custody for consumption, of
any malt beverages in bottles, unless
such products are bottled, packaged,
and labeled in conformity with
regulations issued by the Secretary of
the Treasury with respect to the
packaging, marking, branding, labeling,
and size and fill of container. The
penultimate paragraph of 27 U.S.C. 205
further limits this application, by
providing that the provisions of section
205(e) ‘‘shall apply to the labeling of
malt beverages sold or shipped or
delivered for shipment or otherwise
introduced into or received in any State
from any place outside thereof * * *
only to the extent that the law of such
State imposes similar requirements with
respect to the labeling * * * of malt
beverages not sold or shipped or
delivered for shipment or otherwise
introduced into or received in such
State from any place outside thereof.’’
Consistent with the language of
current § 7.20(a) and (b), proposed § 7.4
sets out these jurisdictional limits.
Paragraph (a)(1) essentially restates the
provisions of the penultimate paragraph
of 27 U.S.C. 205(f). Paragraph (a)(2) sets
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out the longstanding Bureau
interpretation of what is ‘‘similar’’ State
law, by stating that if the label in
question does not violate the laws of the
State or States into which the malt
beverages are being shipped, it does not
violate part 7. Finally, paragraph (a)(3)
clarifies that the regulations in part 7 do
not apply to domestically bottled malt
beverages that are not and will not be
sold or shipped, or delivered for sale or
shipment, or otherwise introduced in
interstate or foreign commerce.
c. Ingredients and processes.
Proposed § 7.5 is derived from current
§ 7.11, and no substantive changes have
been made. It should be noted that the
current regulation authorizes the use of
‘‘flavors and other nonbeverage
ingredients containing alcohol’’ in the
production of malt beverages, subject to
certain limitations. In the proposed
regulation, the word ‘‘nonbeverage’’ has
been inserted in front of the term
‘‘flavors,’’ simply to clarify that the
regulation is intended to authorize only
the use of nonbeverage flavors
containing alcohol.
d. Brewery products that are not malt
beverages. For the first time, TTB is
proposing to include regulations in part
7 that explicitly refer readers to the
regulations in part 4 for sake´ and similar
products that meet the definition of
‘‘wine’’ under the FAA Act, and to the
FDA food labeling regulations for
alcohol beverage products that do not
fall under the definition of malt
beverages, wine, or distilled spirits
under the FAA Act. TTB receives many
inquiries about such products, and TTB
believes that including this information
in the regulatory text will be helpful.
Consistent with the guidance found in
TTB Ruling 2008–3, proposed § 7.6 is a
new provision that clarifies that certain
brewery products are not subject to the
labeling requirements of part 7 because
they do not fall under the definition of
a ‘‘malt beverage’’ under the FAA Act.
As set forth in greater detail in the
ruling, certain brewed products that are
classified as ‘‘beer’’ under the IRC
definition in 26 U.S.C. 5052(a) do not
fall within the definition of a ‘‘malt
beverage’’ in the FAA Act, as found in
27 U.S.C. 211(a)(7). The major
differences between the terms are set
forth as follows in the ruling:
As indicated above, the definition of a
‘‘beer’’ under the IRC differs from the
definition of a ‘‘malt beverage’’ under the
FAA Act in several significant respects. First,
the IRC does not require beer to be fermented
from malted barley; instead, a beer may be
brewed or produced from malt or ‘‘from any
substitute therefor.’’ Second, the IRC does not
require the use of hops in the production of
beer. Third, the definition of ‘‘beer’’ in the
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IRC provides that the product must contain
one-half of one percent or more of alcohol by
volume, whereas there is no minimum
alcohol content for a ‘‘malt beverage’’ under
the FAA Act.
Accordingly, a fermented beverage that is
brewed from a substitute for malt (such as
rice or corn) but without any malted barley
may constitute a ‘‘beer’’ under the IRC but
does not fall within the definition of a ’’ malt
beverage’’ under the FAA Act. Similarly, a
fermented beverage that is not brewed with
hops may fall within the IRC definition of
‘‘beer’’ but also falls outside of the definition
of a ‘‘malt beverage’’ under the FAA Act.
It should be noted that sake´ and similar
products are included within the definition
of ‘‘beer’’ under the IRC. See 26 U.S.C.
5052(a). However, sake´ is also included
within the definition of a wine under the
FAA Act, which, among other things, covers
only wines with an alcohol content of at least
seven percent alcohol by volume. See 27
U.S.C. 211(a)(6). Thus, sake´ and similar
products with an alcohol content of at least
seven percent alcohol by volume are subject
to the labeling and other requirements of the
FAA Act.
The ruling thus held that in cases where
a brewery product (other than sake´ and
similar products) failed to meet the
definition of a ‘‘malt beverage’’ under
the FAA Act, the product will be subject
to ingredient and other labeling
requirements administered by the FDA.
2. Subpart B—Certificates of Label
Approval
As mentioned previously, TTB is
proposing to consolidate the regulations
related to applying for label approval in
a revised subpart B. In addition to the
changes already discussed, TTB is
proposing to clarify the COLA
requirements as they apply to brewers
that are selling their domestically
bottled malt beverages exclusively in
the State in which the malt beverages
were bottled. In TTB Ruling 2013–1,
TTB issued guidance on this issue. TTB
now proposes to make the regulations
more clear and specific.
In proposed § 7.21(a), the regulations
set forth the general requirement for a
COLA. In proposed § 7.21(b), the
regulations clarify that a COLA is
required for malt beverages shipped into
a State from outside of the State only
where the laws or regulations of the
State require that all malt beverages sold
or otherwise disposed of in such State
be labeled in conformity with the
requirements of subparts D through I of
part 7. This is consistent with the
language in current § 7.40, with
conforming changes to reflect the
reorganization of part 7. Proposed
§ 7.21(b) goes on to explain that this
requirement applies where the State has
either adopted subparts D through I in
their entirety or has adopted
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requirements identical to those set forth
in subparts D through I. This is
consistent with the longstanding policy
of TTB and its predecessor agencies.
Consistent with longstanding policy,
proposed § 7.21(b) also notes that malt
beverages that are not subject to the
COLA requirements of current § 7.21
may still be subject to the substantive
labeling provisions of subparts D
through I, to the extent that the State
into which the malt beverages are being
shipped has similar State law or
regulations. This is because a State may
have certain State laws or regulations
that are similar to the labeling
regulations in part 7, but are not
identical. In such a case, while the
COLA requirement would not apply to
malt beverages in containers that are
shipped into that State, the substantive
labeling provisions may apply to the
extent that the state in question has
similar state law.
As noted earlier, the FAA Act requires
any brewer or wholesaler who bottles
malt beverages to obtain a COLA prior
to bottling. The FAA Act then goes on
to state that malt beverages, like wines
and distilled spirits, are exempt from
the COLA requirements if, upon
application to the Secretary, the bottler
shows that the malt beverages to be
bottled by the applicant are not to be
sold, or offered for sale, or shipped or
delivered for shipment, or otherwise
introduced, in interstate or foreign
commerce. TTB’s predecessor agencies
implemented this exemption for
distilled spirits and wines by allowing
for the issuance of a certificate of
exemption for these products. However,
with respect to malt beverages, the
regulations did not require a COLA for
products that were not to be entered in
interstate commerce.
Prior to the issuance of TTB Ruling
2013–1, TTB received several inquiries
from brewers who were not sure how
the COLA requirements applied to their
products. Accordingly, proposed
§ 7.21(c) specifically clarifies that
persons bottling malt beverages that will
not be shipped, or delivered for sale or
shipment, in interstate or foreign
commerce, are not required to obtain a
COLA or a certificate of exemption from
label approval, along with a note
explaining what a certificate of
exemption from label approval is.
The proposed regulations are thus
consistent with current regulations in
that they do not require a certificate of
exemption for malt beverages that will
not be shipped or otherwise introduced
in interstate or foreign commerce. TTB
believes that this is consistent with its
overall goal of minimizing burdens on
industry members. However, TTB
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recognizes that sometimes intrastate
brewers need some type of certificate
from TTB in order to satisfy State
requirements. We solicit comments on
whether the issuance of a certificate of
exemption in such circumstances (for
products that will not be sold outside of
the State of the bottling brewery) would
be useful, and whether the regulations
should allow a certificate of exemption
for such products.
3. Subpart D—Label Standards
Proposed subpart D contains
regulations that govern the placement
and other requirements applicable to
mandatory information and additional
information on labels and containers. As
previously mentioned, TTB is proposing
a new regulation for keg labels.
Proposed § 7.51(a) provides, consistent
with current regulations, that any label
that is not an integral part of the
container must be affixed to the
container in such a way that it cannot
be removed without thorough
application of water or other solvents.
However, proposed § 7.51(b) provides
that a label on a keg with a capacity of
10 gallons or more that is in the form
of a keg collar or a tap cover is not
required to be firmly affixed, provided
that the name of the brewer of the malt
beverage is permanently or semipermanently stated on the keg in the
form of embossing, engraving, or
stamping, or through the use of a sticker
or ink jet method.
Brewers have asked for such an
exception, asserting that the current
requirement for firmly affixed labels is
unduly burdensome when it comes to
kegs. Because kegs are intended to be
reused, brewers have argued that it takes
considerable time and effort to scrape
off the label each time a keg is to be
reused. For this reason, brewers have
requested permission to use a keg collar
that is not firmly affixed to the keg, or
a tap cover, to bear mandatory labeling
information.
TTB believes that additional
flexibility can be afforded with regard to
the labeling of kegs without sacrificing
consumer protection. For this reason,
the proposed rule requires the name of
the brewer to be permanently or semipermanently stated on the keg in the
form of embossing, engraving, or
stamping, or through the use of a sticker
or ink jet method. TTB notes that its
IRC-based regulations in current 27 CFR
25.141 already require the name of the
brewer to be permanently marked on
each barrel or keg. TTB also notes that
the proposed regulatory text specifically
states that this exemption in no way
affects the requirements in 27 CFR part
16 regarding the mandatory health
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warning statement, which would not be
permitted to appear on a tap cover or on
a keg collar that was not firmly affixed
to the keg. TTB seeks comments from
the public on whether the proposed rule
would reduce burdens on brewers, and
whether it could create any consumer
protection issues.
4. Subpart E—Mandatory Label
Information
a. Brand labels. Current § 7.22
requires that certain mandatory
information appear on the brand label of
a malt beverage, while other mandatory
information, and any additional
information, may appear on a label
anywhere on the container. The brand
label is defined in current § 7.10 as
‘‘[t]he label carrying, in the usual
distinctive design, the brand name of
the malt beverage’’ and, under current
§ 7.22, the brand name, class, name and
address, net contents (except when
blown, branded, or burned, on the
container), and alcohol content (when
required for certain malt beverages
produced with flavors or other
nonbeverage ingredients containing
alcohol) are required to appear on the
brand label.
In practice, however, a brand label
may be a label that wraps entirely
around a can or bottle. As a result,
mandatory information may appear
anywhere on certain cans or bottles.
Such cans and bottles are common
containers of malt beverages.
Furthermore, if the label bearing the
brand name is on the back of the
container, then it is the brand label.
TTB believes that the current
regulations requiring that certain
mandatory information be placed on the
brand label of malt beverage containers
are unduly restrictive. Furthermore, the
prevalence of wraparound labels
significantly reduces the consumer
protection otherwise provided by this
rule. Finally, TTB believes that
consumers are used to looking at the
back and neck labels to find mandatory
information on containers.
Accordingly, TTB is proposing, in
proposed § 7.63, to amend the
regulations to allow mandatory
information to appear on any label on
the malt beverage container.
b. Alcohol content. As previously
noted, the FAA Act, which was enacted
in 1935, prohibited alcohol content
statements on malt beverage labels
unless required by State law. See 27
U.S.C. 205(e)(2). That prohibition was
overturned in 1995 by the U.S. Supreme
Court in Rubin v. Coors Brewing
Company, 514 U.S. 476 (1995).
Prior to the Supreme Court’s decision
in Coors, the malt beverage regulations
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in § 7.26 reflected the statutory
prohibition against alcohol content
statements. After a ruling by the United
States District Court for the District of
Colorado in the Coors litigation, TTB’s
predecessor agency, ATF, issued an
interim rule indefinitely suspending
those regulations as of April 19, 1993.
See T.D. ATF–339 (58 FR 21232, April
19, 1993). That interim rule also
implemented new alcohol content
regulations by adding current § 7.71,
which allows alcohol content
statements unless prohibited by State
law. When the alcohol content is stated,
and the manner of the statement is not
required under State law, the provisions
of current § 7.71 prescribe how the
alcohol content may be stated. The 1993
regulations were issued as an interim
rule and they have not been finalized.
In 2005, in T.D. TTB–21 (70 FR 194,
January 3, 2005), TTB issued a final rule
requiring alcohol content statements for
those malt beverages that contain
alcohol derived from added flavors or
other added nonbeverage ingredients
(other than hops extract) containing
alcohol. TTB is retaining this provision
in the proposed regulations, and TTB is
proposing to finalize the interim alcohol
content regulations in this rulemaking.
In this proposed rule, current § 7.26 is
removed, and the provisions of current
§ 7.71 are incorporated in proposed
§ 7.65 with some editorial changes for
clarity, including a list of the acceptable
ways to present an alcohol content
statement on a label. Also, several
substantive changes are proposed, as set
forth below.
Proposed § 7.65(b)(1) specifically
provides that statements other than a
percentage of alcohol by volume, such
as statements of alcohol by weight, may
appear on the label if they are truthful,
accurate, and specific factual
representations of alcohol content, and
if they appear together with, and as part
of, the statement of alcohol content as
a percentage of alcohol by volume.
Among other things, this proposal is
consistent with the policy adopted in
TTB Ruling 2013–2, in which TTB
allowed the use of voluntary Serving
Facts statements on labels and in
advertisements. A Serving Facts
statement includes nutrient information
and may, on an optional basis, also
include alcohol content information. In
the ruling, TTB held that if alcohol
content is expressed as a percentage of
alcohol by volume, the Serving Facts
statement may also include a statement
of the fluid ounces of pure ethyl alcohol
per serving (rounded to the nearest
tenth) as part of the alcohol by volume
statement.
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With regard to statements of alcohol
content by weight, some States require
alcohol content statements to be
expressed in this form. The regulations
have always allowed alcohol content
statements to be made in accordance
with State requirements, and will
continue to do so. However, some
brewers would like to put alcohol
content as both a percentage of alcohol
by volume and as a percentage of
alcohol by weight on labels of products
sold in all States, so that they can use
the same label in the States that require
alcohol content as a percentage of
alcohol by weight and in other States
that neither require nor prohibit alcohol
content statements as a percentage of
alcohol by weight.
TTB is proposing to allow this, but it
solicits comments on whether allowing
this information on labels would be
confusing to consumers, or whether it
would provide consumers with useful
additional information. In particular,
TTB seeks comments on whether
permitting both formats on labels might
confuse consumers as to the meaning of
the different ways of expressing alcohol
content. If so, does requiring the
statements to appear together, as part of
the same alcohol content statement,
negate any potential confusion?
In addition, in proposed § 7.65(c),
TTB proposes to expand the tolerance
for alcohol content on malt beverage
labels. Currently, for most malt
beverages, the regulations allow a
tolerance of 0.3 percentage points above
or below the labeled alcohol content.
TTB proposes to expand this tolerance
to one percentage point above or below
the labeled alcohol content. Some
brewers, especially small brewers, have
avoided putting an optional alcohol
content statement on malt beverage
labels because they have difficulty
maintaining a precise alcohol content
from batch to batch. TTB believes that
increasing the tolerance level will
encourage more brewers to include this
important information on labels.
Furthermore, TTB does not believe that
a one percentage point variation from
the labeled alcohol content will
significantly impact consumers. We
note that the wine regulations allow,
with certain exceptions, tolerances of
one percentage point for wines above 14
percent alcohol by volume and 1.5
percentage points for wines with an
alcohol content of no more than 14
percent alcohol by volume.
Exceptions to the tolerance are
maintained without change. For
example, if a malt beverage label states
that the beverage has an alcohol content
above 0.5 percent, the actual content
may not be below 0.5 percent, regardless
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of any tolerance that would otherwise
be allowed.
Finally, this document does not
propose to make alcohol content
statements on malt beverage labels
mandatory. In Notice No. 73 (72 FR
41860, July 31, 2007) TTB proposed
requiring alcohol content statements for
all malt beverage labels, but no final
rule on that issue has been published.
TTB is not proposing to address
mandatory alcohol content statements
for malt beverage containers in this
rulemaking; TTB will address that issue
in a separate rulemaking procedure.
c. Name and place where bottled on
labels of domestically bottled malt
beverages. The name and place where
bottled informs the consumer as to who
bottled the malt beverage, and where the
bottling took place or where the bottler’s
principal place of business is. Proposed
§ 7.66 is derived from current § 7.25(a)
and (c) and prescribes how the name
and place where malt beverages are
bottled must appear on containers of
domestically bottled malt beverages.
The proposed regulations differ from the
current regulations in a few key ways.
First, the proposed regulations reflect
agency policy stated in the Beverage
Alcohol Manual for Malt Beverages
(TTB P 5130.3), that a listing of all the
brewer’s locations may be provided on
a label under certain conditions. This
language is also consistent with labeling
requirements for beer under TTB’s IRCbased regulations in 27 CFR 25.142.
Second, the proposed regulations
provide more guidance with regard to
what is required when malt beverages
are brewed and bottled for another
person. For example, the proposed
regulations provide that, if the same
brand of malt beverages is brewed and
bottled by two breweries that are not of
the same ownership, the label for each
brewery may set forth both locations
where bottling takes place, as long as
the label uses the actual locations (and
not the principal place of business) and
as long as the nature of the agreement
is clearly set forth. Examples are
provided in the regulatory text.
Third, the proposed regulations
provide that the place of bottling and
the address of the principal place of
business of a brewer must be consistent
with the city and State of the address
reflected on the brewers notice. This
change reflects TTB’s current policy as
stated in the Beverage Alcohol Manual.
d. Net contents. The current
regulations allow for the use of U.S.
standard measures but do not address
whether metric contents may also be
displayed. However, it is current TTB
policy to allow net contents to be
expressed in both formats. Proposed
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§ 7.70 allows for the statement of net
contents of metric measurements in
addition to, but not in lieu of, the U.S.
standard measures.
5. Subpart F—Restricted Labeling
Statements; Use of the Term ‘‘Draft’’
The proposed regulations also address
the use of the term ‘‘draft’’ on malt
beverage labels. Longstanding Bureau
policy is set forth in Industry Circular
65–1, which sets out standards for the
use of the word ‘‘draft’’ on malt
beverage labels. Proposed § 7.87 reflects
this policy and provides that any malt
beverage in a container of one gallon or
more that dispenses through a tap,
spigot, faucet, or similar device may be
described as ‘‘draft.’’ Malt beverages
packaged in customary bottles and cans
may also be described as ‘‘draft’’ if they
are unpasteurized and require
refrigeration for preservation, or if the
unpasteurized beverage has been sterile
filtered and aseptically filled. Finally,
the ruling provides that malt beverages
packaged in customary bottles or cans
that have been pasteurized may be
described as ‘‘draft brewed’’, ‘‘draft beer
flavor’’, ‘‘old time on tap taste’’ or with
another similar phrase, only if the word
‘‘pasteurized’’ appears on the label.
As a matter of internal policy, TTB
started to approve certain labels of
pasteurized malt beverages using the
term ‘‘draft’’ standing alone, if the word
‘‘pasteurized’’ also appears on the label.
TTB is soliciting comments on whether
this practice is misleading and should
be changed. TTB is interested in
comments specifically on whether it
should continue to allow the use of any
such terms on labels of pasteurized malt
beverages. Please let TTB know if a
change in these policies would impact
existing labels.
6. Subpart H—Labeling Practices That
Are Prohibited if They Are Misleading
a. Use of the term ‘‘bonded.’’ One
currently prohibited practice is the use
on malt beverage labels of the term
‘‘bonded’’ or similar terms that may
imply governmental supervision over
the production, bottling, or packing of
the product. TTB believes that this
implication (that such terms imply
governmental supervision) is related to
the use of those terms with regard to
distilled spirits, and that such terms
were historically prohibited because
their use on malt beverage labels would
mislead consumers by causing them to
believe that the malt beverage was
actually a distilled spirit. The text, at
proposed § 7.131, does not differ from
the text currently prohibiting such terms
(in § 7.29(c)). However, TTB is
requesting comments on whether such
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terms are likely to mislead consumers
into believing a product was made
under governmental supervision or into
believing a malt beverage is a distilled
spirit, and, as a result, whether TTB
should continue to prohibit their use on
malt beverage labels.
b. Strength claims. As previously
mentioned, the FAA Act prohibits both
statements of alcohol content and
statements likely to be considered as
statements of alcohol content from
appearing on malt beverage labels,
unless required by State law. See 27
U.S.C. 205(e)(2). Current §§ 7.29(f) and
7.29(g) both implement the statutory
ban on statements that are likely to be
considered statements of alcohol
content on malt beverage labels. Current
§ 7.29(f) prohibits the use of the words
‘‘strong,’’ ‘‘full strength,’’ ‘‘extra
strength,’’ ‘‘high test,’’ ‘‘high proof,’’
‘‘pre-war strength,’’ ‘‘full oldtime
alcoholic strength,’’ and similar words
or statements that are likely to be
considered as statements of alcohol
content on labels of malt beverages. The
proposed rule modernizes the language
of these provisions by removing some
terms (such as ‘‘pre-war strength’’ and
‘‘full oldtime alcoholic strength’’) that
are not likely to be used by today’s
brewers.
7. Subpart I—Classes and Types of Malt
Beverages
Part 7 does not prescribe standards of
identity for malt beverages. Instead,
current § 7.24(a) provides that
statements of class and type for malt
beverages shall conform to the
designation of the product as known to
the trade. If the product is not known to
the trade under a particular designation,
a distinctive or fanciful name, together
with an adequate and truthful statement
of composition of the product, shall be
stated, and such statement is treated as
a statement of class and type for
purposes of part 7.
Current Section 7.24(d) states that no
product containing less than one-half of
one percent alcohol by volume shall
bear the class designation ‘‘beer,’’ ‘‘lager
beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ or
‘‘stout.’’ Further, current § 7.24(e)
provides that no product other than a
malt beverage fermented at
comparatively high temperature,
possessing the characteristics generally
attributed to ‘‘ale,’’ ‘‘porter,’’ or ‘‘stout’’
and produced without the use of
coloring or flavoring materials (other
than those recognized in standard
practices) shall bear any of those class
designations.
In 1993, ATF, TTB’s predecessor
agency, sought comments on standards
of identity for malt beverages, in
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particular malt liquors, in an advance
notice of proposed rulemaking. See
Notice No. 771 (58 FR. 21126, April 19,
1993). However, the regulations were
not amended to include such standards.
In Notice No. 771, ATF stated that its
predecessor agency, the Federal Alcohol
Administration (FAA), issued proposed
regulations regarding standards of
identity for malt beverages in 1935, but
noted that there were differences of
opinion in the brewing industry
regarding the standards and definitions
for certain designations. The FAA
issued regulations in 1936 providing
that products containing less than 5
percent alcohol by volume could not be
designated as ale, porter, or stout. See
Regulations No. 7, section 24 (1 FR
2013, November 21, 1936). The
regulations were premised, in part, on
the public perception that ale, porter,
and stout were higher in alcohol content
than beer. After more hearings, the FAA
amended the regulations in 1938 to
eliminate the list of classes and the
minimum alcohol content requirements
for ale, porter, and stout.
TTB does not propose now to include
specific standards of identity. Proposed
§ 7.141 is derived from 27 CFR 7.24(a)
and sets out standards for class and type
designations on malt beverages. This
section explains that the class of the
malt beverage must be stated on the
label. The type may optionally be stated.
Statements of class and type must
conform to the designation of the
product as known to the trade. If the
product is not known to the trade, the
product must contain a distinctive or
fanciful name as well as a statement of
composition.
Proposed § 7.141 differs from the
current regulations in that it proposes to
define a ‘‘malt beverage specialty’’ as a
malt beverage that does not fall under
any of the class designations set forth in
part 7 and is not known to the trade
under a particular designation, usually
because of the addition of ingredients
such as colorings, flavorings, or food
materials, or the use of certain types of
production processes. Such beverages
will not be designated as ‘‘malt beverage
specialties’’ on the label, but the term
reflects current usage and is a
convenient way to refer to such
products in the regulations.
Proposed § 7.142 sets out class
designations. Any malt beverage may be
designated simply as a ‘‘malt beverage.’’
The designations ‘‘beer’’, ‘‘ale’’,
‘‘porter’’, ‘‘stout’’, ‘‘lager’’, and ‘‘malt
liquor’’ may be used to designate malt
beverages that contain at least 0.5
percent alcohol by volume and that
conform to the trade’s understanding of
those designations. TTB proposes to
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allow these designations to be preceded
or followed by descriptions of the color
of the product (such as brown, red, or
golden).
Proposed § 7.143 is largely consistent
with existing regulations on class and
type designations. There are new
proposed provisions for ‘‘ice beer,’’
‘‘wheat beer,’’ ‘‘rye beer,’’ and ‘‘barley
wine ale,’’ consistent with existing TTB
policy.
The proposed regulations in proposed
§§ 7.143(h) and 7.144 reflect changes
adopted in TTB Ruling 2014–4 with
respect to the labeling of malt beverage
products fermented or flavored with
honey, certain fruits, and certain spices.
Prior to the issuance of this ruling, the
Brewers Association, a trade association
representing small brewers, petitioned
TTB to exempt certain malt beverages
from the formula requirements under
part 25, and to liberalize the labeling
rules applicable to these products. The
Brewers Association stated that ‘‘[W]ellknown and widely-distributed products
such as fruit beers and spiced beers’’
were ‘‘well known to the trade and
consumers by their flavor designations:
e.g., fruit beers, spiced ales, honey
porters, and so forth. Required
statements of composition such as ‘ale
brewed with raspberry juice’ or ‘porter
brewed with honey’ simply are
unnecessary, clutter labels, and provide
no more information to the consumer
than the readily-understood
designations of ‘raspberry ale’ or ’honey
porter.’ ’’
The petition also suggested that TTB
abandon the distinction between fruit
beers made with added fruits or juices
and those fermented with such
substances, but, instead, should allow
brewers to make this distinction on their
labels if they wish.
In TTB Ruling 2014–4, TTB adopted
these changes for certain malt beverages
designated in accordance with trade
understanding. We are now proposing
to codify these standards in the
regulations. TTB seeks comments on
whether additional ingredients should
be recognized as traditional ingredients
in the production of a fermented
beverage designated as ‘‘beer,’’ ‘‘ale,’’
‘‘porter’’, ‘‘stout,’’ ‘‘lager,’’ or ‘‘malt
liquor.’’
The TTB regulations also provide for
special rules for certain classes and
types; these are currently found in
§ 7.24(b) through (e). TTB proposes, in
§§ 7.143 and 7.144, to incorporate and
partially supersede Ruling 94–3, which
held that ice beer is not considered
concentrated when it is produced by
removing less than 0.5 percent of the
volume of the beer in the form of ice
crystals and retains beer characteristics.
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18:26 Nov 23, 2018
Jkt 247001
TTB also proposes to incorporate and
supersede Ruling 76–13, which sets
forth standards for cereal beverages,
which are malt beverages that contain
less than 0.5 percent alcohol by volume,
and confirms that such beverages fall
under the authority of the FAA Act.
Proposed § 7.146 sets forth the
requirements for geographical names
currently found in section 27 CFR
7.24(f) through (h) with clarifying
changes. TTB proposes to clarify that
distinctive names may be used in
addition to, but not in lieu of a class
designation. For example, Vienna Beer
or Bavarian Stout may appear as
designations.
Malt beverages that are not ‘‘known to
the trade’’ are required to be labeled
with a statement of composition.
Proposed § 7.147 sets forth provisions
for statements of composition on malt
beverages. These provisions are new to
the regulations and reflect current
policy. Specifically, a statement of
composition is required to appear on the
label for malt beverage specialty
products, as defined in proposed
§ 7.141(b), which are not known to the
trade under a particular designation. For
example, the addition of flavoring
materials, colors, or artificial sweeteners
may change the class and type of the
malt beverage. The statement of
composition along with a distinctive or
fanciful name serves as the class and
type designation for these products.
F. Proposed 27 CFR Part 14
(Advertising)
Currently the regulatory provisions
that address the advertising of wine,
distilled spirits, and malt beverages are
set forth in parts 4, 5, and 7,
respectively. As noted above, TTB
proposes to add a new 27 CFR part 14,
Advertising of Wine, Distilled Spirits,
and Malt Beverages, to consolidate these
provisions into one part. In general, the
advertising regulations require that
advertisements, like labels, are truthful,
accurate, and not misleading. Where
possible, TTB seeks to treat
advertisements for wine, distilled
spirits, and malt beverages consistently.
TTB proposes to delete the
advertisement regulations for wine,
distilled and malt beverages from parts
4, 5, and 7, respectively, and
consolidate them into the new part 14.
Additionally, the proposed regulations
are updated for clarity and to reflect
changes in prohibited practices that
mirror those proposed in the labeling
regulations, where appropriate.
In the definitions section for part 14,
TTB proposes to include several
definitions that apply to advertising that
currently appear in parts 4, 5, and 7,
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and to add definitions for ‘‘consumer
specialty item,’’ and ‘‘responsible
advertiser.’’ TTB also proposes to
amend the definition of
‘‘advertisement’’ that is currently found
in §§ 4.61, 5.62, and 7.51. Certain
statements on container coverings,
cartons, cases, carriers, or other
packaging have traditionally been
treated as advertising materials. As
discussed in section II B of this
preamble, TTB proposes to amend the
labeling regulations, in proposed
§§ 4.62, 5.62, and 7.62, to clarify that
certain information must appear on
packaging materials. These items would
not be considered advertisements.
However, items such as hang tags that
accompany the bottle would continue to
be considered advertisements and
would be subject to the rules in part 14.
In proposed § 14.4, TTB sets forth the
general requirement that advertisements
must be in conformity with the TTB
regulations found in part 14. TTB
proposes to add a substantiation
requirement to the regulation that
mirrors the substantiation requirement
for claims made on labels. Accordingly,
industry members will be required to
substantiate any claim made on an
advertisement and a claim that cannot
be adequately substantiated will be
considered misleading. TTB also
proposes to require that the responsible
advertiser provide substantiation upon
request for a period of five years from
the time the advertisement was
disseminated or published.
Certain information is required to
appear on alcohol beverage
advertisements. Specifically, the
responsible advertiser’s name and
contact information must appear on the
advertisement. Currently, the
regulations require the name and
address to appear on the advertisement.
TTB proposes to liberalize that
requirement so that any type of contact
information may be used, such as a
telephone number, website, or email
address. Additionally, the class, class
and type, or other designation for the
product advertised must appear on the
advertisement. The mandatory
statements are prescribed in the
proposed § 14.6.
In the current and proposed
regulations, if an advertisement refers to
a general alcohol beverage product line,
the only information required is the
name and address (or contact
information, in the proposed rule) of the
responsible advertiser. In some cases,
TTB finds that a ‘‘product line’’ contains
only two types of products, and it also
finds administrative difficulty when
enforcing the mandatory statements
requirements on internet sites. TTB
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seeks comments on whether TTB should
modify this requirement and, if it does,
how the public might be better informed
when an internet site or other
advertisement refers to more than one
type of product.
The prohibited practices for
advertisements contain a number of
rules and prohibitions that conform to
the rules for labels found in parts 4, 5,
and 7. Generally, a statement or
representation that is prohibited from
appearing on a label is also prohibited
from appearing on an advertisement.
TTB proposes to set forth the rules that
apply to alcohol beverage
advertisements in subpart A. Sections
14.11 through 14.14 set forth the rules
that apply to all alcohol beverage
products. These are organized into
sections that include related topics, in a
similar organization to rules in parts 4,
5, and 7: Restricted practices, prohibited
practices, and misleading statements or
representations.
TTB proposes, in § 14.14(f) to prohibit
statements or representations that create
an impression that a product is a
different commodity. For example, a
malt beverage advertisement could not
have a representation that leads the
viewer to believe that the product is
wine. This prohibition is similar to that
proposed in the labeling regulations in
parts 4, 5, and 7. As noted above, TTB
is not proposing substantive changes to
the rules on health-related statements
on labels, and TTB similarly does not
propose changes for such statements on
advertisements at this time.
Sections 14.15, 14.16, and 14.17 set
forth the rules specific to
advertisements for wine, distilled
spirits, and malt beverages, respectively.
In § 14.16, TTB proposes to incorporate
the modified rules for the use of
‘‘double distilled,’’ ‘‘triple distilled,’’
and similar terms, to conform to the
updated rules for using the terms on
labels of distilled spirits, as described
above. TTB also proposes, in § 14.17, to
update the rules on strength claims on
malt beverages, so that strength claims
are only prohibited if the claims imply
that products should be purchased on
the basis of alcohol strength. Consistent
with current policy, TTB proposes to
remove the existing restrictions on
alcohol content statements in
advertisements for wine and malt
beverages, in light of the Supreme
Court’s decision in Coors, which was
discussed earlier in this document.
Although the Coors decision related to
labels, not advertisements, TTB does not
believe that the advertising regulations
should prohibit truthful, specific and
numerical claims about the alcohol
content of those products.
In subpart C, TTB proposes to include
references to various provisions of the
FAA Act. Proposed § 14.21 states that a
violation of the advertising provisions of
27 U.S.C. 205(e) is punishable as a
misdemeanor and refers readers to 27
U.S.C. 207 for the statutory provisions
relating to criminal penalties, consent
decrees, and injunctions. Proposed
§ 14.22 provides that basic permits are
conditioned upon compliance with the
provisions of 27 U.S.C. 205, including
the advertising provisions of part 14,
and that a willful violation of the
conditions of a basic permit provides
grounds for the revocation or
suspension of the permit, as applicable,
Document No.
60605
as set forth in 27 CFR part 1. Proposed
§ 14.23 sets forth TTB’s authority to
compromise liability for a violation of
27 U.S.C. 205 upon payment of a sum
not in excess of $500 for each offense.
This sum is to be collected by the
appropriate TTB officer and deposited
into the Treasury as miscellaneous
receipts.
By proposing to place these
provisions in the regulations, TTB is
making it easier for a person to locate
the penalties for violating the FAA Act
and the regulations implementing the
FAA Act. These proposed regulations
will not change the criminal penalty
and compromise provisions, which are
set forth in the statute.
The Office of Management and Budget
(OMB) assigns control numbers to TTB’s
information collection requirements. In
subpart D, TTB proposes to list those
sections that impose an information
collection requirement along with the
assigned OMB control number. TTB
believes that industry members will
have an easier time locating OMB
control numbers for information
collection requirements if they are listed
in one location.
G. Impact on Public Guidance
Documents
The chart below describes the impact
of this proposed rule on rulings,
industry circulars, and other public
guidance documents issued over the
years by TTB and its various
predecessor agencies. The following
public guidance documents will be
superseded by the publication of a final
rule:
Incorporated into proposed
sections at:
Subject
Cross Cutting
Industry Circular 1963–23 ........
TTB Guidance 2011–5 .............
TTB Ruling 2012–3 ..................
Use of Disparaging Themes or References in Alcoholic Beverage Advertising is
Prohibited.
Personalized Labels ...................................................................................................
Recognition of Andong Soju and Gyeongju Beopju as Distinctive Products of
Korea.
Not incorporated.
§§ 4.29, 5.29, and 7.29.
§§ 4.148 and 5.154.
Wine
Revenue Ruling 54–250 ..........
Revenue Ruling 54–418 ..........
Revenue Ruling 55–618 ..........
Revenue Ruling 71–535 ..........
ATF Ruling 73–5 ......................
ATF Ruling 73–6 ......................
ATF Ruling 78–4 ......................
ATF Ruling 82–4 ......................
ATF Ruling 85–14 ....................
ATF Ruling 91–1 ......................
ATF Ruling 2002–7 ..................
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Vintage Date ..............................................................................................................
Aperitif Wine ...............................................................................................................
Wine Labels ...............................................................................................................
Labels on Imported Alcohol Beverages .....................................................................
Spanish Wines Labeled with Semi-generic Designations .........................................
Spanish Wines Labeled with Grape Type Designations ...........................................
Use of Descriptive Terms on Wine Labels ................................................................
Use of Descriptive Terms on Wine Labels ................................................................
Labeling of Wine Bearing Generic or Semi-generic Designation ..............................
Multistate Appellations of Origin for Contiguous States ............................................
Wine made from grapes frozen after harvest may not be labeled with the term
‘‘ice wine’’ or any variation thereof, and if the wine is labeled to suggest it was
made from frozen grapes, the label must be qualified to show that the grapes
were frozen post-harvest.
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Frm 00045
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E:\FR\FM\26NOP2.SGM
26NOP2
§ 4.95.
§ 4.147.
Not incorporated.
§ 4.68.
§ 4.174.
Not incorporated.
§ 4.94.
§ 4.94.
Not incorporated.
§ 4.90.
§ 4.94.
60606
Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
Incorporated into proposed
sections at:
Document No.
Subject
TTB Ruling 2008–1 ..................
Standards of Identity and the Use of Semi-generic Designations and Retsina on
Certain European Wines Imported into the United States.
§ 4.174.
Distilled Spirits
Revenue
Revenue
Revenue
Revenue
Ruling
Ruling
Ruling
Ruling
54–592
55–399
55–552
55–740
..........
..........
..........
..........
Revenue Ruling 56–98 ............
Revenue Ruling 59–408 ..........
Revenue Ruling 61–15 ............
Revenue Ruling 61–25 ............
Revenue Ruling 61–71 ............
Revenue Ruling 62–224 ..........
Revenue Ruling 68–502 ..........
Revenue Ruling 69–58 ............
Revenue Ruling 71–188 ..........
Revenue Ruling 71–535 ..........
ATF Ruling 75–32 ....................
ATF Ruling 76–3 ......................
ATF Ruling 79–9 ......................
ATF Ruling 88–1 ......................
ATF Ruling 93–3 ......................
ATF Ruling 94–5 ......................
ATF Ruling 97–1 ......................
ATF Ruling 2001–2 ..................
Industry Circular 1971–7 ..........
Industry Circular 76–28 ............
Industry Circular 2007–5 ..........
Relabeling Tax Paid Distilled Spirits ..........................................................................
Straight Whiskey ........................................................................................................
Grain Neutral Spirits Stored in Wood may not be Labeled as Vodka ......................
Neutral Spirits Subjected to Vodka Process but Stored in Reused Whiskey Barrels
may not be Designated or Labeled as Vodka.
Flavored Vodka ..........................................................................................................
Addition of Caramel ...................................................................................................
Labeling of Scotch Whisky ........................................................................................
Distilled Spirits Labeling .............................................................................................
Use of the Word Straight in Labeling and Advertising of Liqueurs or Cordials ........
Relabeling by Wholesale Liquor Dealer ....................................................................
Light Whisky from Kentucky ......................................................................................
Age statements ..........................................................................................................
Whisky Classification as White ..................................................................................
Labels on Imported Alcohol Beverages .....................................................................
Labeling of Diluted Spirits ..........................................................................................
Labeling of Vodka Treated with Activated Carbon as ‘‘Charcoal Filtered’’ ...............
Distilled Spirits Labels ................................................................................................
Alcohol Content on Labels and in Advertisements of Distilled Spirits ......................
Age Statements on Grappa Brandy ..........................................................................
Geographical Names .................................................................................................
Use of a ‘‘Trace Amount’’ of Citric Acid in the Production of Vodka without Changing its Designation as Vodka.
Country of Origin Statements on Distilled Spirits Labels ..........................................
Protection of Names of Bourbon Whiskey and Certain French Brandies .................
Production of New Charred Barrels using Used Heads ............................................
Use of the Term Absinthe for Distilled Spirits ...........................................................
§ 5.42.
Not Incorporated.
§ 5.142.
§ 5.142.
§ 5.142.
§ 5.156.
§ 5.90(b).
§§ 5.141 and 5.143.
§ 5.150(a).
§ 5.42.
§ 5.66(f)(3).
Not Incorporated.
§ 5.113.
§ 5.68.
§ 5.153.
§ 5.142.
§ 5.67.
§ 5.44(b)(5).
§ 5.74(c).
§ 5.143 and § 5.145(c)(2)–
(5).
§ 5.142.
§ 5.69.
§§ 5.143 and 5.145.
Not Incorporated.
§ 5.149.
Malt Beverages
Revenue Ruling 54–513 ..........
Revenue Ruling 71–535 ..........
ATF Ruling 76–13 ....................
ATF Ruling 94–3 (superseded
only with respect to the provisions related to part 7. The
part 25 provisions remain in
effect.).
ATF Procedure 98–1 ...............
TTB Ruling 2008–3 ..................
TTB Ruling 2013–1 ..................
TTB Ruling 2015–1 ..................
Industry Circular 1965–1 ..........
Labeling and Advertising of Malt Beverages .............................................................
Labels on Imported Alcohol Beverages .....................................................................
Malt Beverages of Less Than 1⁄2 of 1% Alcohol by Volume Subject to FAA Act .....
Ice Beer ......................................................................................................................
Not incorporated.
§ 7.68.
§ 7.145.
§ 7.143.
Labeling of Imported Malt Beverages Bottled or Packed in the United States, and
Labeling of Blends of Imported and Domestic Malt Beverages Bottled or Packed
in the United States.
Classification of Brewed Products .............................................................................
Malt Beverages Sold Exclusively in Intrastate Commerce ........................................
Ingredients and Processes Used in the Production of Beer Not Subject to Formula
Requirements.
Use of the Term ‘‘Draft Beer’’ on Labels and in Advertising of Beer ........................
§§ 7.67 and 7.69.
III. Derivation Tables for Proposed
Parts 4, 5, 7, and 14
27 CFR Part 4
27 CFR Part 4
Requirements in new
section:
Are derived from current section:
4.0 .............................
4.1.
Subpart A—General Provisions
4.1
4.2
4.3
4.4
4.5
4.6
.............................
.............................
.............................
.............................
.............................
.............................
VerDate Sep<11>2014
4.10.
4.2.
4.30(a) and New.
Reserved.
New.
New.
18:26 Nov 23, 2018
Jkt 247001
§ 7.6.
§§ 7.4 and 7.21.
§§ 7.143 and 7.144.
§ 7.87.
27 CFR Part 4
Requirements in new
section:
Are derived from current section:
Requirements in new
section:
Are derived from current section:
4.7 .............................
4.8 .............................
4.9 .............................
4.10 ...........................
4.11 ...........................
4.12 ...........................
New.
4.80.
New.
4.5.
4.3.
4.4.
4.23
4.24
4.25
4.27
4.28
4.29
4.30
4.50(b).
4.40.
New.
4.51.
4.38(h) and New.
New.
4.45.
Subpart B—Certificates of Label Approval
and Certificates of Exemption of Label
Approval
4.21 ...........................
4.22 ...........................
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4.50(a) and (b).
New.
Sfmt 4702
...........................
...........................
...........................
...........................
...........................
...........................
...........................
Subpart C—Alteration of Labels, Relabeling, and Adding Information to
Containers
4.41 ...........................
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4.30(b).
Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
27 CFR Part 4
27 CFR Part 4
60607
27 CFR Part 5
Requirements in new
section:
Are derived from current section:
Requirements in new
section:
Are derived from current section:
Requirements of new
section:
Are derived from current section:
4.42 ...........................
4.43 ...........................
4.44 ...........................
4.30(b).
4.30(b).
4.30(b) and New.
4.135 .........................
4.136 .........................
4.39(k).
4.39(n).
5.3 .............................
5.4 .............................
5.5 .............................
5.6 .............................
5.7 .............................
5.8 .............................
5.9 .............................
5.10 ...........................
5.11 ...........................
5.12 ...........................
New.
[reserved].
[reserved].
[reserved].
New.
New.
New.
5.2.
5.3.
5.4.
Subpart I—The Standards of Identity for
Wine
Subpart D—Label Standards
4.51
4.52
4.53
4.54
4.55
4.56
...........................
...........................
...........................
...........................
...........................
...........................
4.38(e).
4.38(a).
4.38(b).
New.
4.38(c).
4.38(f).
Subpart E—Mandatory Label Information
4.61
4.62
4.63
4.64
4.65
4.66
4.67
4.68
4.69
4.70
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
New.
4.38a and New.
4.32.
4.33; 4.39(i) and (j).
4.36.
4.35(a) and (c); New.
4.35(b) and (c).
4.35.
New.
4.37.
Subpart F—Restricted Labeling Statements
4.81
4.82
4.83
4.84
4.85
4.86
4.87
4.88
4.89
4.90
4.91
4.92
4.93
4.94
4.95
4.96
4.97
4.98
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
New.
4.32a.
4.32b.
4.101.
New.
4.39(e)(2).
4.39(m).
4.25(a).
4.25(b).
4.25(c) and (d).
4.25(e).
4.26.
New.
New.
4.27.
4.25(a).
4.25(b).
4.25(c) and (d).
.........................
.........................
.........................
.........................
4.191 .........................
4.192 .........................
4.193 .........................
4.201
4.202
4.203
4.204
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
Reserved .........
.........................
.........................
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Jkt 247001
4.22.
N/A.
4.23.
4.28.
N/A.
4.24(a).
4.24(b).
4.24(c)(1)–(c)(2).
Subpart C—Alteration of Labels, Relabeling and Adding Information to Containers
4.93.
4.91.
4.92.
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
5.41 ...........................
5.42 ...........................
5.43 ...........................
5.31(a).
5.55.
5.55(b).
5.51(a).
5.51.
5.51 and 5.55.
5.33(g).
New.
5.52.
5.31(b).
5.31(b).
Subpart D—Label Standards
4.70.
4.71.
4.72.
New.
5.51
5.52
5.53
5.54
5.55
5.56
...........................
...........................
...........................
...........................
...........................
...........................
5.33(e).
5.33(a).
5.33(b)(5) and (6).
New.
5.33(c).
5.33(f).
Subpart E—Mandatory Label Information
Subpart L—Recordkeeping and
Substantiation Requirements
4.211 .........................
4.212 .........................
New.
New.
Subpart M—Penalties and Compromise of
Liability
New.
4.39(a)(1).
4.39(a)(3).
4.39(a)(7).
New.
4.39(a)(1).
4.39(a)(5).
4.39(a)(2).
4.39(a)(4).
4.39(g).
4.39(e).
4.39(a)(7).
4.39(h).
4.39(a)(6).
4.39(f).
N/A.
4.39(a)(8).
4.39(b)–(d).
.........................
.........................
.........................
.........................
Subpart B—Certificates of Label Approval
and Certificates of Exemption From
Label Approval
5.21
5.22
5.23
5.24
5.25
5.27
5.28
5.29
5.30
Subpart K—Standards for Wine Containers and Authorized Container Sizes
Subpart H—Labeling Practices That Are
Prohibited if They Are Misleading
4.121
4.122
4.123
4.124
4.125
4.126
4.127
4.128
4.129
4.130
4.131
4.132
4.133
4.134
4.20 and 4.34.
4.21(a).
4.21(b).
4.21(c).
4.21(d) and (e).
4.21(f).
4.21(g).
(New).
4.21(i).
4.21(h).
New.
N/A.
Subpart J—American Grape Variety Names
Subpart G—Prohibited Labeling Practices
4.101
4.102
4.103
4.104
4.141 .........................
4.142 .........................
4.143 .........................
4.144 .........................
4.145 .........................
4.146 .........................
4.147 .........................
4.148 .........................
4.149 .........................
4.150 .........................
4.151 .........................
4.152 & 4.153 Reserved.
4.154 .........................
4.155 Reserved .........
4.156 .........................
4.157 .........................
4.158–4.172 Reserved.
4.173 .........................
4.174 .........................
4.175 .........................
4.221 .........................
4.222 .........................
4.224 .........................
New.
New.
New.
Subpart N—Paperwork Reduction Act
4.231 .........................
New.
5.61
5.62
5.63
5.64
5.65
5.66
5.67
5.68
5.69
5.70
5.71
5.72
5.73
5.74
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
New.
5.41 and New.
5.32.
5.34.
5.37.
5.36.
5.36.
5.36.
5.36(e).
5.38.
5.39(a).
5.39(b).
5.39(c).
5.40.
Subpart F—Restricted Labeling Statements
27 CFR Part 5
Requirements of new
section:
Are derived from current section:
5.0 .............................
5.1.
Subpart A—General Provisions
5.1 .............................
5.2 .............................
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5.11.
5.1.
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5.81
5.82
5.83
5.84
5.85
5.86
5.87
5.88
5.89
5.90
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
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26NOP2
New.
5.32a.
5.32b.
5.71.
New.
Reserved.
New.
5.42(b)(4).
5.42(b)(6).
5.22(k)(4).
60608
Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
27 CFR Part 5
27 CFR Part 5
Requirements of new
section:
Are derived from current section:
5.91 ...........................
5.42(b)(5).
New.
5.42(a)(1).
5.42(a)(3).
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
New.
5.42(a)(1).
5.42(a)(5).
5.42(a)(2).
5.42(a)(4).
5.42(b)(7).
5.42.
New.
5.42(b)(8).
5.42(a)(6).
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
5.22.
5.22(a).
5.22(b) and 5.35(c).
5.22(c).
5.22(d).
5.22(e).
5.22(f).
New.
New.
5.22(h).
5.22(i).
5.22(j).
New.
5.22(k) and (l).
5.23.
New.
Subpart J—Formulas
5.191
5.192
5.193
5.194
.........................
.........................
.........................
.........................
Requirements of new
section:
Are derived from current section:
7.0 .............................
7.1.
7.1 .............................
7.2 .............................
7.3 .............................
7.4 .............................
7.5 .............................
7.6 .............................
7.7 .............................
7.8 .............................
7.9 .............................
7.10 ...........................
7.11 ...........................
7.12 ...........................
7.21 ...........................
7.22
7.23
7.24
7.25
7.27
7.28
7.29
.........................
.........................
.........................
.........................
.........................
Subpart L—Recordkeeping and
Substantiation Requirements
5.211 .........................
5.212 .........................
5.213 .........................
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...........................
...........................
...........................
...........................
...........................
...........................
Subpart F—Restricted Labeling Statements
7.81
7.82
7.83
7.84
7.85
7.86
7.87
...........................
...........................
...........................
...........................
...........................
...........................
...........................
New.
7.22a.
7.22b.
7.81.
New.
Reserved.
New.
7.20(c)(1).
7.20(c)(2).
New.
New.
7.101 .........................
7.102 .........................
7.103 .........................
Subpart H—Labeling Practices That Are
Prohibited if They Are Misleading
7.121
7.122
7.123
7.124
7.125
7.126
7.127
7.129
7.130
7.131
7.132
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
New.
7.29(a)(1) and New.
7.29(a)(5).
7.29(a)(2).
7.29(a)(4).
7.29(d).
7.29(b).
7.29(e).
7.29(a)(6).
7.29(c).
7.29(f).
Subpart I—Classes and Types of Malt
beverages
7.141
7.142
7.143
7.144
7.145
7.146
7.147
.........................
.........................
.........................
.........................
.........................
.........................
.........................
7.24(a).
7.24(e).
7.24(b) and New.
New.
7.24(d).
7.24(g), (f), and (h).
New.
Subpart L—Recordkeeping and
Substantiation Requirements
7.211 .........................
7.212 .........................
New.
New.
Subpart M—Penalties and Compromise of
Liability
7.221 .........................
7.222 .........................
7.223 .........................
7.28(d).
7.28(a).
7.28(b).
New.
7.28(c).
7.28(e).
New.
7.29(a)(1).
7.29(a)(3).
New.
New.
New.
Subpart N—Paperwork Reduction Act
7.231 .........................
New.
27 CFR Part 14
New.
New.
5.33(g).
New.
New.
New.
...........................
...........................
...........................
...........................
Are derived from current section:
Subpart E—Mandatory Label Information
Subpart M—Penalties and Compromise of
Liability
5.221 .........................
5.222 .........................
5.223 .........................
7.20(b), 7.40 and
7.41.
7.40 and 7.41.
[reserved].
7.30 and 7.31(b).
7.30 and 7.31.
7.42.
7.31(d).
New.
Subpart D—Label Standards
7.51
7.52
7.53
7.54
7.55
7.56
5.45.
5.46.
5.47a.
New.
New.
7.10.
7.2.
7.20(b) and (c).
7.20(a) and New.
New.
New.
New.
7.60.
New.
7.4.
7.3.
7.5.
Subpart C—Alteration of Labels, Relabeling, and Adding Information to
Containers
7.41
7.42
7.43
7.44
5.25.
5.26.
5.27.
5.28.
...........................
...........................
...........................
...........................
...........................
...........................
...........................
Requirements of new
section:
Subpart G—Prohibited Labeling Practices
Subpart B—Certificates of Label Approval
Subpart K—Distilled Spirits Containers and
Authorized Container Sizes
5.201
5.202
5.203
5.204
5.205
New.
Subpart A—General Provisions
Subpart I—The Standards of Identity for
Distilled Spirits
5.141
5.142
5.143
5.144
5.145
5.146
5.147
5.148
5.149
5.150
5.151
5.152
5.153
5.154
5.156
5.166
5.231 .........................
27 CFR Part 7
Subpart H—Labeling Practices That Are
Prohibited if They Are Misleading
5.121
5.122
5.123
5.124
5.125
5.126
5.127
5.128
5.129
5.130
Are derived from current section:
Subpart N—Paperwork Reduction Act
Subpart G—Prohibited Labeling Practices
5.101 .........................
5.102 .........................
5.103 .........................
Requirements of new
section:
27 CFR Part 7
7.61
7.62
7.63
7.64
7.65
7.66
7.67
7.68
7.69
7.70
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...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
Frm 00048
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New.
New.
7.22.
7.23.
7.71.
7.25(a) and (c).
7.25(b).
7.25.
7.New.
7.27.
Sfmt 4702
Requirements of new
section:
Are derived from current section:
14.0 ...........................
New and 7.50.
Subpart A—General Provisions
14.1 ...........................
14.2 ...........................
E:\FR\FM\26NOP2.SGM
26NOP2
4.11, 4.61, 5.11, 5.61,
7.11, 7.51.
4.2, 5.1, 7.2.
Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
27 CFR Part 14
Requirements of new
section:
Are derived from current section:
14.3
14.4
14.5
14.6
4.4, 5.4, 7.5.
4.60, 5.61, 7.50.
4.62, 5.63, 7.52.
4.63, 5.64, 7.53.
...........................
...........................
...........................
...........................
Subpart B—Rules Related to Specific
Practices in Advertisements
14.11 .........................
14.12 .........................
14.13 .........................
14.14 .........................
14.15 .........................
14.16 .........................
14.17 .........................
New.
4.64(b), 4.65, 5.65(b),
5.66, 7.54(b), 7.55.
4.64, 5.65, 7.54.
4.64, 5.65, 7.54, and
New.
4.64.
5.65.
7.54.
Subpart C—Penalties and Compromise of
Liability
14.21 .........................
14.22 .........................
14.23 .........................
New.
New.
New.
Subpart D—Paperwork Reduction Act
14.31 .........................
New.
IV. Public Participation
A. Comments Sought
TTB requests comments from the
public and all interested parties on the
regulatory proposals contained in this
document. TTB is particularly
interested in comments that address
whether the proposed revisions to the
labeling and advertising regulations will
continue to protect the consumer by
prohibiting false or misleading
statements and requiring that labels
provide the consumer with adequate
information about the identity and
quality of the product. Where TTB
proposes substantive changes, TTB
seeks comments on the proposals for
further appropriate improvements. With
respect to the few proposed changes that
may require changes in current labeling
or advertising practices, TTB seeks
comments on the impact that the
proposed changes will have on industry
members and any suggestions as to how
to minimize any negative impact.
TTB also seeks comments on whether
more significant changes to the label
approval process, such as expanding the
categories of optional information that
may be revised without TTB approval or
limiting the scope of TTB’s prior review
of labels to certain mandatory
information, should be considered. As
noted earlier in this document, the FAA
Act generally requires the submission of
applications for label approval before
bottlers or importers introduce their
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products into interstate commerce. As
part of its label review process, TTB
reviews both optional and mandatory
information on labels. With regard to
optional information, TTB’s main goal is
to ensure that such information does not
mislead consumers.
TTB also solicits comments from
consumers, industry members, and the
public on whether such changes would
adequately protect consumers. Any
regulatory proposals put forward by
TTB on this issue would, of course,
have to be consistent with the statutory
requirements of the FAA Act.
B. Submitting Comments
You may submit comments on the
proposals contained in this document
by using one of the following three
methods:
• Federal e-Rulemaking Portal: You
may send comments via the online
comment form posted with this
document within Docket No. TTB–
2018–0007 on ‘‘Regulations.gov,’’ the
Federal e-rulemaking portal, at https://
www.regulations.gov. A direct link to
that docket is available under Notice
No. 176 on the TTB website at https://
www.ttb.gov/regulations_laws/all_
rulemaking.shtml. Supplemental files
may be attached to comments submitted
via Regulations.gov. For complete
instructions on how to use
Regulations.gov, visit the site and click
on the ‘‘Help’’ tab.
• U.S. Mail: You may send comments
via postal mail to the Director,
Regulations and Rulings Division,
Alcohol and Tobacco Tax and Trade
Bureau, 1310 G Street NW, Box 12,
Washington, DC 20005.
• 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 400, Washington, DC
20005.
Please submit your comments by the
closing date shown above in this
document. Your comments must
reference Notice No. 176 and include
your name and mailing address. Your
comments also must be made in
English, be legible, and be written in
language acceptable for public
disclosure. TTB does not acknowledge
receipt of comments, and TTB considers
all comments as originals.
In your comment, please clearly state
if you are commenting for yourself or on
behalf of an association, business, or
other entity. If you are commenting on
behalf of an 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
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60609
‘‘Organization’’ blank of the online
comment form. If you comment via
postal mail or hand delivery/courier,
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.
C. Confidentiality
All submitted comments and
attachments are part of the public record
and are subject to disclosure. Do not
enclose any material in your comments
that you consider to be confidential or
inappropriate for public disclosure.
D. Public Disclosure
TTB will post, and you may view,
copies of this document, selected
supporting materials, and any online,
mailed, or hand-delivered comments
received about this proposal within
Docket No. TTB–2018–0007 on the
Federal e-rulemaking portal,
Regulations.gov, at https://
www.regulations.gov. A direct link to
that docket is available on the TTB
website at https://www.ttb.gov/
regulations_laws/all_rulemaking.shtml
under Notice No. 176. You may also
reach the relevant docket through the
Regulations.gov search page at https://
www.regulations.gov. For information
on how to use Regulations.gov, click on
the site’s ‘‘Help’’ tab.
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 may also view copies of this
document, all supporting materials, and
any online, mailed, or hand-delivered
comments that TTB receives 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 TTB’s
Federal Register liaision officer at the
above address or by telephone at 202–
453–2135 to schedule an appointment
or to request copies of comments or
other materials.
V. Regulatory Analysis and Notices
A. Regulatory Flexibility Act
In accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.),
TTB has analyzed the potential
economic effects of this action on small
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Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
entities. In lieu of the initial regulatory
flexibility analysis required to
accompany proposed rules under 5
U.S.C. 603, section 605 allows the head
of an agency to certify that a rule will
not, if promulgated, have a significant
economic impact on a substantial
number of small entities. The following
analysis provides the factual basis for
TTB’s certification under section 605.
1. Small Businesses in the Alcohol
Beverage Industry
TTB recognizes that the vast majority
of producers, bottlers, and importers of
alcohol beverages are small entities. The
Small Business Administration (SBA)
sets out size standards based on the
North American Industry Classification
System (NAICS) under which an entity
can be considered small for the
purposes of Regulatory Flexibility Act
analysis.1 Breweries and wineries are
considered small if they have fewer than
500 employees; distillers are considered
small if they have fewer than 750
employees.
The U.S. Census Bureau’s Statistics of
U.S. Businesses data include data on
employment among establishments
within NAICS codes. The most recent
data are from 2011. TTB used these data
to calculate what proportion of entities
classified within each relevant NAICS
code could be considered small. TTB
also looked at the data from 2005 to try
to find changes over time.
SMALL-ENTITY SIZE STANDARDS FOR POTENTIALLY AFFECTED INDUSTRIES AND PROPORTIONS OF SMALL ENTITIES WITHIN
THOSE INDUSTRIES
Industry (NAICS code)
Small-entity size standard
Proportion of small entities (2005)
Proportion of small entities (2011)
Breweries (NAICS 312120) .............
Fewer than 500 employees .........
Wineries (NAICS 312130) ...............
Distilleries (NAICS 312140) ............
Fewer than 500 employees .........
Fewer than 750 employees .........
92.3 percent (352 small entities of
381 total establishments).
95.2 percent (1559 of 1637) ........
77.0 percent (57 of 74) 1 ..............
95.6 percent (696 small entities of
728 total establishments).
97.0 percent (2613 of 2694).
91.0 percent (193 of 212).1
1 This is the proportion of entities with under 500 employees; the Statistics of U.S. Businesses data do not include employment at the 750-employee threshold. The true percentage and number of small entities are thus potentially higher than those listed here.
Source: SBA standards, Statistics of U.S. Businesses (see https://www.census.gov/econ/susb/).
2. Effect of the Proposed Rule
The vast majority of businesses
subject to the proposed rule are small
businesses, but the changes proposed in
this document will not have a
significant impact on those small
entities. The production, bottling,
importation, and distribution of alcohol
beverages is an industry subject to
extensive Federal, State, and local
regulation. As mentioned earlier in this
document, the labeling and advertising
regulations under the FAA Act have
been in place since 1936. The proposed
rule thus largely restates existing
requirements, but clarifies and updates
these regulations to make them easier to
understand and to incorporate agency
policies. The proposed regulations take
into account modern business practices
and contemporary consumer
understanding in order to modernize the
regulations, and TTB is seeking
comments from all interested parties on
ways in which the regulations may be
improved.
The changes in the proposed rule can
be divided into three classes with
respect to their impact on small entities:
(1) Clarifying changes that do not allow
or prohibit any new conduct but
improve the clarity and organization of
TTB’s FAA Act requirements; (2)
liberalizing changes that will potentially
give regulated entities new options to
fulfill requirements; and (3) changes
that impose new requirements or
require changes to current labels.
a. Clarifying changes: Many of the
changes in this proposal are clarifying
in nature. They are designed to make
TTB’s requirements for alcohol beverage
labeling easier to read and use. These
proposed changes would not have any
impact on small businesses, other than
making it easier for them to understand
the existing requirements of the
regulation. Examples of clarifying
changes include the following:
• Adding examples in the regulations
of how certain requirements may be
satisfied;
• Adding to the regulations guidance
that had previously been provided in
rulings, Industry Circulars, or other
documents separate from the
regulations;
• Addressing questions the public
frequently asks TTB;
• Making definitions, organization,
numbering of sections, and phrasing of
requirements within the regulations
consistent across 27 CFR parts 4, 5, and
7 to the extent possible;
• Breaking large subparts and large
sections into small subparts and small
sections to increase readability; and
• Providing more cross references in
the regulations to relevant regulations
and statutes.
These changes benefit all regulated
entities, especially small entities, which
typically do not have as many resources
for complying with the regulations as
larger entities. In addition to these
proposed changes, TTB would also add
some requirements to the regulations
that reflect TTB policy by:
• Making it explicit that mandatory
information may not be obscured in
whole or in part;
• Codifying various TTB policies
regarding statements of composition;
• Codifying TTB policy on using
aggregate packaging to satisfy standards
of fill for wine and distilled spirits;
• Changing the definition of a
certificate of label approval (COLA) to
incorporate TTB’s current policy of
expanding the allowable revisions that
may be made to already approved labels
through the issuance of guidance
documents;
• Codifying TTB’s current policy that
any wines, distilled spirits, or malt
beverages that are adulterated under the
Federal Food, Drug, and Cosmetic Act
are mislabeled under the FAA Act;
• Codifying TTB’s current policy that
compliance with the labeling
regulations issued under the FAA Act
does not relieve industry members of
their responsibility to comply with FDA
regulations regarding the safety of
additives and ingredients, as well as
FDA regulations regarding the safe use
of materials in containers;
• Codifying TTB’s current policy, as
stated on the label application form, that
the issuance of a COLA does not confer
trademark protection or relieve the
certificate holder from liability for
violations of the FAA Act, the IRC,
ABLA, or related regulations, and that
products covered by a COLA may still
1 See https://www.sba.gov/content/small-businesssize-standards.
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Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
be mislabeled if the label contains
statements that are false or misleading
when applied to the beverage in the
container;
• Codifying in the regulations the
current requirement that containers
covered by a certificate of exemption
must bear a labeling statement that the
product is ‘‘For sale in [name of State]
only’’;
• Codifying current TTB guidance
with respect to the use of a COLA by an
importer other than the permittee to
whom the COLA was issued;
• Codifying TTB’s current policy with
respect to the approval of the use of
‘‘personalized labels’’ by bottlers
without having to resubmit applications
for label approval;
• Amending the regulations on the
use of semi-generic designations for
consistency with amendments made to
the IRC in 2006;
• Codifying current policy with
respect to the required name and
address statement on labels for wines,
distilled spirits, and malt beverages that
have been subject to certain production
activities after importation in bulk;
• Codifying current policy with
respect to the allowed use of certain
non-misleading labeling claims about
environmental and sustainability
practices;
• Codifying current policy that allows
truthful and non-misleading
comparisons on labels and in
advertisements without violating the
prohibition against ‘‘disparaging’’
statements;
• Providing that the prohibition
against the use of flags and other
symbols of a government applies
whenever the label may create a
misleading impression that the product
is endorsed by, or otherwise affiliated
with, that government;
• Removing outdated provisions in
the tax laws from the labeling
regulations;
• Providing that certain alcohol
beverage products do not meet the
definition of a wine, distilled spirit, or
malt beverage under the FAA Act, and
must accordingly be labeled in
accordance with FDA labeling
regulations for food;
• Codifying longstanding policy that
products containing less than 0.5
percent alcohol by volume are not
distilled spirits under the FAA Act;
• Specifying how the FAA Act
applies to the labeling of malt beverages
under the penultimate paragraph of 27
U.S.C. 205(f); and
• For purposes of aging distilled
spirits, defining an oak barrel as a
cylindrical oak drum of approximately
50 gallons used to age bulk spirits.
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These provisions reflect current TTB
policy, and thus no existing labels
should need to be changed to come into
compliance with these requirements.
b. Liberalizing changes: Liberalizing
changes will not require entities that are
currently in compliance with the
regulations to make any changes, but
may provide regulated entities with
additional options they can choose to
use. Any effect on small entities from
these changes is likely to be positive.
Key examples include:
• Allowing greater flexibility in the
placement of mandatory information on
labels by eliminating the requirement
that mandatory information appear on
the ‘‘brand label’’;
• Liberalizing the requirements for
the use of a type designation consisting
of multiple grape varieties, thus
allowing greater flexibility in the
blending of wines;
• Allowing the use of truthful,
accurate, specific, and non-misleading.
additional information on the label
about the grape varieties used to make
a still grape wine, sparkling grape wine,
or carbonated grape wine, provided that
the information includes every grape
variety used to make the wine, listed in
descending order of predominance;
• Liberalizing the requirements for
the use of multicounty or multistate
appellations on wine labels, thus
allowing more producers and importers
to claim an appellation of origin for
these wines;
• Allowing the use of vintage dates
on wines bottled in the United States
that had been imported in bulk
containers under certain conditions;
• Allowing the use of ‘‘estate grown’’
on labels of grape wines that do not
meet all of the requirements for an
‘‘estate bottled’’ claim, but where the
producing winery grew all of the grapes
used to make the wine on land owned
or controlled by the producing winery,
and met certain other conditions;
• Allowing certain statements of
alcohol content, other than alcohol as a
percentage of alcohol by volume, as
additional information on labels already
containing a mandatory alcohol content
statement;
• Superseding the Industry Circular
that required pre-approval laboratory
testing for products containing
wormwood;
• Modifying the standard of identity
for whisky to provide for ‘‘white
whisky’’ and ‘‘unaged whisky,’’ in
response to market demand for these
types of products;
• Adding ‘‘agave spirits’’ as a class of
distilled spirits and recognizing
‘‘Mezcal’’ as a type within that class;
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60611
• Expanding the allowable alcohol
content tolerance for distilled spirits;
• Allowing wholesalers and retailers
to relabel distilled spirits when
necessary and when approved by TTB;
• Incorporating Ruling 2015–1 by
allowing the use of designations in
accordance with trade understanding,
rather than statements of composition,
in the labeling of malt beverage
specialty products that are flavored or
fermented with ingredients that TTB has
determined are generally recognized as
traditional ingredients in the production
of a fermented beverage designated as
‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’
or ‘‘malt liquor’’;
• Allowing certain mandatory
information to appear on the keg collar
or tap cover of malt beverage kegs with
a capacity of 10 gallons or more, subject
to certain requirements; and
• Allowing the use of alternate
contact information (such as the
telephone number, website, or email
address) together with the name of the
responsible advertiser in
advertisements.
c. Potentially restrictive changes:
Potentially restrictive proposed changes
may require some industry members to
either change the labeling of their
products or to change the formulation of
the product to avoid labeling changes.
TTB believes that most of these
proposed changes will not impact many
products, but solicits comments on the
impact that the proposed changes will
have. These changes include:
• Adopting consistent language with
regard to what type of products
intended for exportation are exempt
from the labeling requirements of parts
4, 5, and 7.
• Cross-referencing CBP regulations
that require a country of origin
statement on labels of imported wines
and malt beverages. Such a statement is
required for distilled spirits under
current TTB regulations. TTB does not
believe this will impact many labels, as
such a statement is already required for
imported wines and malt beverages
under CBP regulations, and TTB’s
proposed regulation is simply a crossreference to existing CBP requirements.
• Specifying that statements of
composition and standards of identity
for distilled spirits products must be
determined based on the finished
product itself, without regard to
whether components are added to the
product directly or through
intermediates. This may require the
relabeling of certain specialty products
to disclose the use of wine and spirits
that were used in the formulation of
intermediate products, but will ensure
that consumers have truthful and
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adequate information about the identity
of the product.
• Prohibiting the use of labeling and
advertising statements and
representations that create a misleading
impression that the product is a
different commodity. This may require
the relabeling of certain products that
are marketed using terms associated
with different commodities, if such
terms create a misleading impression as
to the identity of the product. TTB
believes that this will protect consumers
from misleading representations as to
the identity of the product.
• Eliminating the ‘‘citrus wine’’
designation, which TTB believes is
rarely used on wine labels.
• Codifying in the regulations that
grape wine and fruit wine must meet the
standards for ‘‘natural wine’’ under the
IRC.
• Defining a distillation as a single
run through a pot still or one run
through a single distillation column of
a column (reflux) still. Although this
change is clarifying in nature, it may
impact labels that currently claim that
the spirits have been distilled for a
certain number of times, but use a
different definition of ‘‘distillation.’’
• Revising the current requirement
that certain whisky products distilled in
the United States must include the State
of distillation on the label by providing
that a bottling address within the State
does not suffice unless it includes a
representation as to distillation;
• Requiring that statements of
composition for distilled spirits list the
spirits or wine used in the manufacture
of the distilled spirits in order of
predominance. This may require
changes to some labels, but will provide
consumers with more clear information
about the composition of distilled
spirits specialty products.
• Requiring distilled spirits cocktails
to bear a full statement of composition
instead of an abbreviated one that just
lists the types of spirits used in the
manufacture of the cocktail. This may
require changes to some labels, but will
provide consumers with better
information about the identity of the
product.
• Requiring whisky (other than
Tennessee Whisky) that meets the
standard for a type of whisky to be
designated with that type name, rather
than as ‘‘whisky.’’ TTB does not believe
that this will impact many products, but
some labels may have to be changed.
3. Delayed Compliance Date
As mentioned earlier in this
document, TTB is proposing to give all
regulated entities three years to come
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into compliance with the proposed
regulations, should they be finalized.
The label redesign, printing, and
administrative costs associated with
making a labeling change are on a
‘‘stock-keeping unit’’ (or ‘‘SKU’’) basis
rather than a formulation basis. To
examine costs associated with label
redesign, TTB referred to the FDA’s
Labeling Cost Model,2 which
incorporates assumptions about the
proportion of SKUs that would be
changed together with a scheduled label
change.
Under the FDA’s Labeling Cost
Model, the longer the implementation
period, the more likely it is that affected
industry members can coordinate new
labeling requirements with scheduled
labeling changes. This leads to cost
estimates that fall significantly as the
time allowed for the new labeling
requirements increases. In other words,
the longer the period of time industry is
given to comply with the new labeling
requirements, the lower the costs.
As previously mentioned, TTB does
not believe that the changes proposed
by this notice would have a significant
impact on many industry members. To
the extent that some labels may have to
be revised to comply with the proposed
changes, TTB believes that the vast
majority of industry members that
would be affected by these changes
would be able to coordinate labeling
changes as a result of the proposed
regulatory requirements with their
scheduled labeling changes.
The FDA model assumes that for a
three-year delayed compliance date,
required modifications to 100 percent of
brand name product labels and 67
percent of private product labels can be
coordinated with regularly scheduled
label changes. Thus, according to this
model, there would be no additional
costs for branded products; however
there may be incremental relabeling,
printing, and administrative costs for 33
percent of the private label SKUs
because their producers may not be able
to coordinate the required changes with
their regularly scheduled labeling
changes.
TTB does not know how many
entities, large or small, would be
affected by the proposed changes to
labeling requirements. However, the
Bureau estimates that these changes will
affect only a small percentage of current
labels. Thus, TTB expects that the
proposed changes would not affect
many labels, and also that the three-year
delayed compliance date would allow
most affected entities to come into
2 https://www.fda.gov/ohrms/dockets/dockets/
04n0382/04n-0382-bkg0001-Tab-05-01-vol1.pdf.
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compliance with the changes in
conjunction with regularly scheduled
label changes.
4. Other Changes
TTB is also proposing to clarify and
somewhat expand existing requirements
with regard to ‘‘packaging’’ of wine,
distilled spirits, and malt beverage
containers. This includes coverings,
cartons, cases, carriers, and other
packaging used for sale at retail, but
does not include shipping cartons or
cases not intended to accompany the
container to the consumer.
Existing regulations already prohibit
certain false or misleading
representations on packaging, and the
existing wine and distilled spirits
regulations already require certain
mandatory information on closed
‘‘opaque’’ individual coverings or
containers. For the reasons set forth in
the preamble, the proposed rule
expands this requirement to include
malt beverages and to require that
‘‘closed packaging’’ of wine, distilled
spirits, and malt beverages bear all the
mandatory information required on the
label. The term ‘‘closed packaging’’
would include sealed opaque coverings
and cases. Packaging is not considered
closed if the consumer could view all
the mandatory information on the label
by merely lifting the container up, or if
the packaging is transparent or designed
in a way that the mandatory information
on the label can be easily read by the
consumer without having to open, rip,
untie, unzip or otherwise manipulate
the package. This requirement would
also be subject to the three-year delayed
compliance date.
TTB believes that alcohol beverage
producers who use outer packaging
update their packaging more than once
every three years, similar to labels. The
three-year delayed compliance date will
give producers the opportunity to use
up existing stocks of packaging. In
addition, outer packaging is typically
large enough to accommodate the
mandatory information. TTB solicits
comments on the impact that this
proposed change would have on
existing packaging materials.
5. Recordkeeping
TTB is proposing to provide further
details in the proposed labeling and
advertising regulations regarding
recordkeeping and substantiation
requirements under the FAA Act for
bottlers and importers. Current
regulations (27 CFR 4.51, 5.55, and 7.42)
require bottlers holding an original or
duplicate original of a COLA or a
certificate of exemption to exhibit such
certificates, upon demand, to a duly
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authorized representative of the United
States Government. Current regulations
(27 CFR 4.40, 5.51, and 7.31) also
require importers to provide a copy of
the applicable COLA upon the request
of the appropriate TTB officer or a
customs officer. However, these
regulations do not state how long
industry members should retain their
COLAs. Furthermore, since these
regulations were originally drafted, TTB
has implemented the electronic filing of
applications for label approval. Now,
over 90 percent of new applications for
label approval are submitted
electronically, and the rest are
processed electronically by TTB.
Industry members have asked for
clarification as to whether they have to
retain paper copies of certificates that
were processed electronically. Finally,
because industry members may make
certain specified revisions to approved
labels without obtaining a new COLA, it
is important that the industry members
keep track of which label approval they
are using when they make such
revisions.
Accordingly, the proposed regulations
provide that, upon request by the
appropriate TTB officer, bottlers and
importers must provide evidence of
label approval for a label used on an
alcohol beverage container that is
subject to the COLA requirements of the
applicable part. This requirement may
be satisfied by providing original
COLAs, photocopies or electronic
copies of COLAs, or records identifying
the TTB identification number assigned
to the COLA. Where labels on
containers reflect revisions to the
approved label that have been made in
compliance with allowable revisions
authorized on the COLA form or
otherwise authorized by TTB, the bottler
or importer must be able to identify the
COLA covering the product, upon
request by the appropriate TTB officer.
Bottlers and importers must be able to
provide this information for a period of
five years from the date the products
covered by the COLAs were removed
from the bottler’s premises or from
customs custody, as applicable.
TTB believes that five years is a
reasonable period of time for record
retention because there is a five-year
statute of limitations for criminal
violations of the FAA Act. TTB notes
that the proposed rule does not require
industry members to retain paper copies
of each COLA; they should simply be
able to track a particular removal to a
particular COLA, and they may rely on
electronic copies of COLAs, including
copies contained in the TTB Public
COLA Registry. TTB believes that
industry members already retain records
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in this manner in the ordinary course of
their business, but seeks comments on
the impact of this proposal.
The proposed regulations also set
forth specific substantiation
requirements, which are new to the
regulations, but which reflect TTB’s
current expectations as to the level of
evidence industry members should have
to support labeling claims. The
proposed regulations provide that all
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Claims that contain express or implied
statements regarding the amount of
support for the claim (e.g., ‘‘tests
provide,’’ or ‘‘studies show’’) must have
the level of substantiation that is
claimed.
Furthermore, the proposed
regulations provide for the first time
that any labeling claim that does not
have a reasonable basis in fact, or
cannot be adequately substantiated
upon the request of the appropriate TTB
officer, will be considered misleading.
The regulations in subpart H are
similarly amended to include the same
requirement. TTB believes that this
provision, which is very similar to the
Federal Trade Commission’s policy on
substantiation of advertising claims,
will clarify that industry members are
responsible for ensuring that all labeling
and advertising claims have adequate
substantiation. See ‘‘FTC Policy
Statement Regarding Advertising
Substantiation’’ (Appended to
Thompson Medical Co., 104 F.T.C. 648,
839 (1984), aff’d, 791 F.2d 189 (D.C. Cir.
1986), cert. denied, 479 U.S. 1086
(1987)). TTB also believes that the
records necessary to substantiate label
and advertising claims are already
retained by industry members in the
ordinary course of business.
TTB also proposes to require the use
of TTB Form 5100.51 for the submission
of formulas under parts 4, 5, and 7,
rather than allowing other forms or
letterhead statements. Because of the
growing use of online formula
submissions and because industry
members may find that use of this form
is easier than submitting letterhead
applications, TTB believes that this will
assist in the standardization of formula
information.
Finally, TTB is also asking for
comments on several issues that are
discussed in the proposal but that are
not the subject of any specific proposed
regulatory changes. TTB especially
welcomes comments from small entities
on these issues. Small entities may have
found market niches making products
that could be affected by these changes.
They may also have fewer resources to
change existing products, labels, or
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60613
advertisements in response to changes
to the regulations. TTB will carefully
consider all comments on these issues
before proceeding with any changes.
In conclusion, while the industries
affected by the proposed rule include a
substantial number of small entities, the
effects of the changes in this proposed
rule are likely to be small and positive.
Making the regulations easier to
understand and comply with will
promote compliance, and liberalizing
changes will give all regulated parties
additional options for complying with
the regulations or undertaking new lines
of business. Most of the restrictive
changes TTB is proposing apply to
labels, and TTB expects that small
entities will be able to comply with
them in the course of their normal
business cycle. Producers of alcohol
beverages must already keep records in
the ordinary course of business; the
proposed rule would clarify what
recordkeeping TTB expects from
regulated entities, and the proposed
recordkeeping requirements do not go
beyond what could reasonably be
expected based on the statute of
limitations for criminal enforcement of
the FAA Act.
6. Certification
In accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.),
TTB certifies that this proposed rule, if
promulgated, will not have a significant
economic impact on a substantial
number of small entities. The proposed
rule will not impose, or otherwise
cause, a significant increase in
reporting, recordkeeping, or other
compliance burdens on a substantial
number of small entities. The proposed
rule is not expected to have significant
secondary or incidental effects on a
substantial number of small entities.
Accordingly, a regulatory flexibility
analysis is not required. Pursuant to 26
U.S.C. 7805(f), TTB will submit the
proposed regulations to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on the impact of the proposed
regulations on small businesses.
B. Executive Order 12866
It has been determined that this notice
is not a significant regulatory action as
defined in Executive Order 12866 of
September 30, 1993. Therefore a
regulatory assessment is not necessary.
C. Paperwork Reduction Act
This proposed rule contains ten
information collections, old and new.
Nine of the collections of information
contained in the regulatory sections
affected by this proposed rule have been
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previously reviewed and approved by
the Office of Management and Budget
(OMB) in accordance with the
Paperwork Reduction Act of 1995 (PRA,
44 U.S.C. 3507) and assigned control
numbers 1513–0020, 1513–0046, 1513—
0064, 1513–0084, 1513–0085, 1513–
0087, 1513–0111, 1513–0121 and 1513–
0122. The specific regulatory sections in
this proposed rule that contain
approved collections of information are
§§ 4.21–4.28, 4.30, 4.62, 4.63, 4.81–4.98,
4.121–4.136, 5.21–5.27, 5.28, 5.30, 5.62,
5.63, 5.81–5.90, 5.121–5.130, 5.192–
5.194, 7.21, 7.22, 7.24–7.27, 7.28, 7.63,
7.66, 7.67, 7.81–7.85, 7.87, 7.121–7.132,
14.6, 14.12, 14.14, 14.15, 14.16, and
14.17. In this proposed rule, TTB is not
proposing any changes to eight of the
nine current information collection or
recordkeeping requirements of, or
burdens associated with, these existing
information collections.
TTB is amending OMB control
number 1513–0087 to include proposed
regulations in §§ 4.62, 5.62, and 7.62,
which provide that closed packaging,
including sealed opaque coverings,
cartons, cases, carriers, or other
packaging used for sale at retail, must
include all mandatory information
required to appear on the label. This
proposed requirement is consistent with
existing regulations in §§ 4.38a and 5.41
for wine and distilled spirits,
respectively, but is new in part 7 for
malt beverages. TTB believes this
requirement is necessary to protect the
consumer. TTB does not believe that
this proposal will increase the estimated
burden of this information collection
because the required information is
already collected and disclosed for the
purposes of labeling under OMB control
number 1513–0087. TTB also believes
that most malt beverage industry
members currently place all mandatory
information that is required to appear
on the label on closed packages. Thus,
TTB believes that the current burden
hours for OMB control number 1513–
0087, which are set forth below, will not
change.
Estimated number of respondents:
9,552.
Estimated average total annual
burden hours: 9,552.
In this proposed rule, TTB also is
proposing new recordkeeping
requirements, and TTB is seeking OMB
approval of these requirements under
one OMB control number. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
displays a valid OMB control number.
The proposed new recordkeeping
requirements are contained in proposed
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§§ 4.211, 4.212, 5.211, 5.212, 7.211,
7.212, and 14.4.
The new recordkeeping requirement
in proposed §§ 4.211, 5.211, and 7.211
provides that, upon request by the
appropriate TTB officer, bottlers and
importers must provide evidence of
label approval for a label used on an
alcohol beverage container that is
subject to the COLA requirements of the
applicable part. This requirement may
be satisfied by providing original
COLAs, photocopies or electronic
copies of COLAs, or records identifying
the TTB identification number assigned
to the COLA. Where labels on
containers reflect revisions to the
approved label that have been made in
compliance with allowable revisions
authorized on the COLA form or
otherwise authorized by TTB, the bottler
or importer must be able to identify the
COLA covering the product. Bottlers
and importers are required to keep
records identifying each COLA for a
period of five years from the date the
products covered by the COLA were
removed from the bottler’s premises or
from customs custody, as applicable.
The new recordkeeping requirement
in proposed §§ 4.212, 5.212, 7.212, and
14.4 sets forth specific substantiation
requirements that apply to any claim
made on any label or container subject
to the requirements of part 4, 5, or 7, or
any claim made in an advertisement
subject to part 14. These substantiation
requirements are new to the regulations,
but they reflect TTB’s current
expectations as to the level of evidence
that industry members should have to
support labeling claims. Proposed
§§ 4.212, 5.212, and 7.212 provide that
the appropriate TTB officer may request
that bottlers and importers provide
evidence that labeling claims are
adequately substantiated at any time
within five years from the time the
alcohol beverage was removed from the
bottling premises or from customs
custody, as applicable. Proposed
§ 14.4(c) provides that the appropriate
TTB officer may request that the
responsible advertiser provide evidence
that advertising claims are adequately
substantiated at any time within a
period of five years from the time the
advertisement was last disseminated or
published.
TTB believes that these COLA use and
label and advertising claim
substantiation records are necessary to
ensure that:
• Importers using a COLA that was
not issued to them have received
authorization to use the COLA from the
person to whom the COLA was issued
(certificate holder);
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• Labels applied to alcohol beverage
containers are covered by a COLA; and
• Claims made on the labels of
alcohol beverage containers and claims
made in advertisements for alcohol
beverages are truthful, accurate, and not
misleading and do not contain any
prohibited practices.
The retention requirement for records
the certificate holder must maintain of
other importers authorized to use its
COLA is five years from the date of the
authorization. The retention
requirement for records identifying each
COLA is five years after the COLA is last
used to remove a product from the
bottler’s premises or from customs
custody, as applicable. The retention
requirement for records substantiating
claims made in advertisements is five
years from the time the advertisement
was last disseminated or published.
TTB believes that all these records are
currently maintained during the usual
and customary course of business.
Estimated number of respondents:
10,982.
Estimated average total annual
burden hours: 1 (one).
The new and revised recordkeeping
requirements have been submitted to
the OMB for review. Comments on these
new and revised recordkeeping
requirements should be sent to OMB at
Office of Management and Budget,
Attention: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503 or by email to
OIRA_submissions@omb.eop.gov. A
copy should also be sent to TTB by any
of the methods previously described.
Comments on the information
collections should be submitted no later
than January 25, 2019.
TTB specifically requests comments
concerning:
• Whether the proposed
recordkeeping collections are necessary
for the proper performance of the
functions of TTB, including whether the
information will have practical utility;
• How to enhance the quality, utility,
and clarity of the information to be
collected;
• How to minimize the burden of
complying with the collections of
information; and
Estimates of capital and start-up costs
and costs of operation, maintenance,
and purchase of services to maintain
records.
VI. Drafting Information
Christopher M. Thiemann and Kara T.
Fontaine of the Regulations and Rulings
Division drafted this document, along
with several other employees of the
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4.6
Alcohol and Tobacco Tax and Trade
Bureau.
List of Subjects
27 CFR Part 4
Advertising, Alcohol and alcoholic
beverages, Customs duties and
inspection, Food additives, Imports,
International agreements, Labeling,
Packaging and containers, Reporting
and recordkeeping requirements, Trade
practices, Wine.
27 CFR Part 5
Advertising, Alcohol and alcoholic
beverages, Customs duties and
inspection, Food additives, Grains,
Imports, International agreements,
Labeling, Liquors, Packaging and
containers, Reporting and recordkeeping
requirements, Trade practices.
27 CFR Part 7
Advertising, Alcohol and alcoholic
beverages, Beer, Customs duties and
inspection, Food additives, Imports,
Labeling, Packaging and containers,
Reporting and recordkeeping
requirements, Trade practices.
Advertising, Alcohol and alcoholic
beverages, Beer, Consumer protection,
Liquors, Packaging and containers,
Trade practices, Wine.
27 CFR Part 19
Administrative practice and
procedure, Alcohol and alcoholic
beverages, Authority delegations
(Government agencies), Caribbean Basin
initiative, Chemicals, Claims, Customs
duties and inspection, Electronic funds
transfers, Excise taxes, Exports, Gasohol,
Imports, Labeling, Liquors, Packaging
and containers, Puerto Rico, Reporting
and recordkeeping requirements,
Research, Security measures, Spices and
flavorings, Stills, Surety bonds,
Transportation, Vinegar, Virgin Islands,
Warehouses, Wine.
Authority and Issuance
For the reasons discussed in the
preamble, TTB proposes to amend 27
CFR, chapter I as follows:
■ 1. Revise part 4 to read as follows:
PART 4—LABELING OF WINE
Sec.
4.0 Scope.
Subpart A—General Provisions
4.1 Definitions.
4.2 Territorial extent.
4.3 General requirements and prohibitions
under the FAA Act.
4.4 [Reserved]
4.5 Wines covered by this part.
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Subpart B—Certificates of Label Approval
and Certificates of Exemption From Label
Approval
Requirements for Wine Bottled in the United
States
4.21 Requirement for certificate of label
approval (COLAs) for wine bottled in the
United States.
4.22 Rules regarding certificates of label
approval (COLAs) for wine bottled in the
United States.
4.23 Application for exemption from label
approval for wines bottled in the United
States.
Requirements for Wine Imported in
Containers
4.24 Certificates of label approval (COLAs)
for wine imported in containers.
4.25 Rules regarding certificates of label
approval (COLAs) for wine imported in
containers.
27 CFR Part 14
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Products produced as wine that are not
covered by this part.
4.7 Other TTB labeling regulations that
apply to wine.
4.8 Wine for export.
4.9 Compliance with Federal and State
requirements.
4.10 Other related regulations.
4.11 Forms.
4.12 Delegations of the Administrator.
Administrative Rules
4.27 Presenting Certificates of Label
Approval (COLAs) to Government
officials.
4.28 Formulas, samples, and
documentation.
4.29 Personalized labels.
4.30 Certificates of origin, identity, and
proper cellar treatment of wine.
Subpart C—Alteration of Labels, Relabeling,
and Adding Information to Containers
4.41 Alteration of labels.
4.42 Authorized relabeling activities by
proprietors of bonded wine premises and
importers.
4.43 Relabeling activities that require
separate written authorization from TTB.
4.44 Adding a label or other information to
a container that identifies the
wholesaler, retailer, or consumer.
Subpart D—Label Standards
4.51 Firmly affixed requirements.
4.52 Legibility and other requirements for
mandatory information on labels.
4.53 Type size of mandatory information.
4.54 Visibility of mandatory information.
4.55 Language requirements.
4.56 Additional information.
Subpart E—Mandatory Label Information
4.61 What constitutes a label for purposes
of mandatory information.
4.62 Packaging (cartons, coverings, and
cases).
4.63 Mandatory label information.
4.64 Brand name.
4.65 Alcohol content.
4.66 Name and address for domestically
bottled wine that was wholly fermented
in the United States.
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60615
4.67
Name and address for domestically
bottled wine that was bottled after
importation.
4.68 Name and address for wine that was
imported in a container.
4.69 Country of origin.
4.70 Net contents.
Subpart F—Restricted Labeling Statements
4.81 General.
Food Allergen Labeling
4.82 Voluntary disclosure of major food
allergens.
4.83 Petitions for exemption from major
food allergen labeling.
Production Claims
4.84 Use of the term ‘‘organic.’’
4.85 Environmental, sustainability, and
similar statements.
4.86 Use of TTB permit numbers on labels.
4.87 Use of vineyard, orchard, farm, or
ranch name as additional information.
Appellations of Origin for Grape Wine
4.88 Appellations of origin for grape wine
in general.
4.89 Eligibility for the use of an appellation
of origin for grape wine.
4.90 Multicounty and multistate
appellations of origin for grape wine.
4.91 Viticultural areas.
Claims About Grape Wine
4.92 Estate bottled.
4.93 Estate grown.
4.94 Claims on grape wine labels for
viticultural practices that result in sweet
wine.
4.95 Vintage date.
Appellations of Origin for Fruit Wine,
Agricultural Wine, and Rice Wine
4.96 Appellations of origin for fruit wine,
agricultural wine, and rice wine in
general.
4.97 Eligibility requirements for use of an
appellation of origin for fruit wine,
agricultural wine, and rice wine.
4.98 Multicounty and multistate
appellations of origin for fruit wine,
agricultural wine, and rice wine.
Subpart G—Prohibited Labeling Practices
4.101 General.
4.102 False or untrue statements.
4.103 Obscene or indecent depictions.
Subpart H—Labeling Practices That Are
Prohibited If They Are Misleading
4.121 General.
4.122 Misleading statements or
representations.
4.123 Guarantees.
4.124 Disparaging statements.
4.125 Tests or analyses.
4.126 Depictions of government symbols.
4.127 Depictions simulating government
stamps or relating to supervision.
4.128 Claims related to distilled spirits or
malt beverages.
4.129 Health-related statements.
4.130 Appearance of endorsement.
4.131 Use of the word ‘‘importer’’ or similar
words.
4.132 [Reserved]
4.133 Claims regarding terms defined or
authorized by this part.
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4.134 Statements related to dates or ages.
4.135 Indications of origin.
4.136 Use of a varietal name, type
designation of varietal significance,
semi-generic name, or geographic
distinctive designation.
4.137 Terms relating to intoxicating
qualities.
Subpart M—Penalties and Compromise of
Liability
4.221 Criminal penalties.
4.222 Conditions of basic permit.
4.223 Compromise.
Subpart N—Paperwork Reduction Act
4.231 OMB control numbers assigned under
the Paperwork Reduction Act.
Subpart I—The Standards of Identity for
Wine
4.141 The standards of identity in general.
4.142 Still grape wine—class and type
designation.
4.143 Sparkling grape wine—class and type
designation.
4.144 Carbonated grape wine—class and
type designation.
4.145 Fruit wine—class and type
designation.
4.146 Agricultural wine—class and type
designation.
4.147 Aperitif—class and type designation.
4.148 Rice wine—class and type
designation.
4.149 Retsina wine—designation.
4.150 Imitation and substandard or other
than standard wine—designation.
4.151 Statements of composition.
4.152–4.153 [Reserved]
Cellar Treatment and Alteration of Class and
Type
4.154 Cellar treatment and alteration of
class or type.
4.155 [Reserved]
Grape Type Labeling
4.156 Varietal (grape type) labeling as type
designations.
4.157 Type designations of varietal
significance for American wines.
4.158 [Reserved]
Generic, Semi-Generic, and Non-Generic
Designations of Geographic Significance
4.173 Generic designations of geographic
significance.
4.174 Semi-generic designations of
geographic significance.
4.175 Nongeneric designation of geographic
significance and nongeneric designations
that are distinctive designations of
specific grape wines.
4.176–4.177 [Reserved]
Subpart J—American Grape Variety Names
4.191 Approval of grape variety names.
4.192 List of approved names.
4.193 Alternative names permitted for
temporary use.
Subpart K—Standards of Fill and
Authorized Container Sizes
4.201 General.
4.202 Standard wine containers.
4.203 Standards of fill (container sizes).
4.204 Aggregate packaging to meet standard
of fill requirements.
Subpart L—Recordkeeping and
Substantiation Requirements
4.211 Recordkeeping requirements—
certificates.
4.212 Substantiation requirements.
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Authority: 27 U.S.C. 205, unless otherwise
noted.
§ 4.04.0
Scope.
This part sets forth requirements that
apply to the labeling and packaging of
wines in containers, including
requirements for label approval and
rules regarding mandatory, regulated,
and prohibited labeling statements.
Subpart A—General Provisions
§ 4.14.1
Definitions.
When used in this part and on forms
prescribed under this part, the following
terms have the meaning assigned to
them in this section, unless the terms
appear in a context that requires a
different meaning. Any other term
defined in the Federal Alcohol
Administration Act (FAA Act) and used
in this part has the same meaning
assigned to it by the FAA Act.
Administrator. The Administrator,
Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
American. A descriptive term
referring to the 50 States of the United
States, the District of Columbia, and the
Commonwealth of Puerto Rico.
Appropriate TTB officer. An officer or
employee of the Alcohol and Tobacco
Tax and Trade Bureau (TTB) authorized
to perform any function relating to the
administration or enforcement of this
part by the current version of TTB Order
1135.4, Delegation of the
Administrator’s Authorities, in 27 CFR
part 4, Labeling of Wine.
Bottler. Any producer or blender of
wine, proprietor of bonded wine
premises, or proprietor of a taxpaid
wine bottling house, who places wine in
containers.
Brand name. The name under which
a wine or line of wine is sold.
Brix. The quantity of dissolved solids
expressed as grams of sucrose in 100
grams of solution (percent by weight of
sugar) at 68 degrees Fahrenheit (20
degrees Celsius).
Certificate holder. The permittee or
brewer whose name, address, and basic
permit number, plant registry number,
or brewer’s notice number appears on
an approved TTB Form 5100.31.
Certificate of exemption from label
approval. A certificate issued on TTB
Form 5100.31, which authorizes the
bottling of wine or distilled spirits,
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under the condition that the product
will under no circumstances be sold,
offered for sale, shipped, delivered for
shipment, or otherwise introduced by
the applicant, directly or indirectly, into
interstate or foreign commerce.
Certificate of label approval (COLA).
A certificate issued on TTB Form
5100.31 that authorizes the bottling of
wine, distilled spirits, and malt
beverages, or the removal of bottled
wine, distilled spirits, and malt
beverages from customs custody for
introduction into commerce, as long as
the product bears labels identical to the
labels appearing on the face of the
certificate, or labels with changes
authorized by TTB on the certificate or
otherwise.
Container. Any can, bottle, box with
an internal bladder, cask, keg, barrel, or
other closed receptacle, in any size or
material, that is for use in the sale of
wine at retail. See subpart K of this part
for rules regarding authorized standards
of fill for containers.
County. Includes a county or a
political subdivision recognized by the
State as a county equivalent.
Customs officer. An officer of U.S.
Customs and Border Protection (CBP) or
any agent or other person authorized by
law to perform the duties of such an
officer.
Distinctive or fanciful name. A
descriptive name or phrase chosen to
identify a wine product on the label. It
does not include a brand name, class or
type designation, or statement of
composition.
FAA Act. The Federal Alcohol
Administration Act.
Fully finished. Ready to be bottled,
except that it may be further subject to
the practices authorized in § 4.154(c)
and blending that does not result in an
alteration of class or type under
§ 4.154(b).
Gallon. A U.S. gallon of 231 cubic
inches at 60 degrees Fahrenheit.
Grape wine. When used without
further modification, the term ‘‘grape
wine’’ includes still grape wine,
sparkling grape wine, and carbonated
grape wine. As set forth in § 4.142,
however, the term ‘‘grape wine’’ by
itself may be used to designate only still
grape wine.
Interstate or foreign commerce.
Commerce between any State and any
place outside of that State or commerce
within the District of Columbia or
commerce between points within the
same State but through any place
outside of that State.
Liter or litre. A metric unit of capacity
equal to 1,000 cubic centimeters or
1,000 milliliters (mL) of wine at 20
degrees Celsius (68 degrees Fahrenheit),
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and equivalent to 33.814 U.S. fluid
ounces.
Net contents. The amount, by volume,
of wine held in a container.
Permittee. Any person holding a basic
permit under the FAA Act.
Person. Any individual, corporation,
partnership, association, joint-stock
company, business trust, limited
liability company, or other form of
business enterprise, including a
receiver, trustee, or liquidating agent
and including an officer or employee of
any agency of a State or political
subdivision of a State.
Pure condensed must. The
dehydrated juice or must of sound, ripe
grapes, or other fruit or agricultural
products, concentrated to not more than
80° brix, the composition thereof
remaining unaltered except for removal
of water.
Restored pure condensed must. Pure
condensed must to which has been
added an amount of water not exceeding
the amount removed in the dehydration
process.
State. One of the 50 States of the
United States, the District of Columbia,
or the Commonwealth of Puerto Rico.
Total solids. The degrees Brix of the
dealcoholized wine restored to its
original volume with water.
TTB. The Alcohol and Tobacco Tax
and Trade Bureau of the Department of
the Treasury.
United States (U.S.). The 50 States,
the District of Columbia, and the
Commonwealth of Puerto Rico.
Wine. Section 117(a) of the Federal
Alcohol Administration Act (27 U.S.C.
211(a)) defines ‘‘wine’’ as any of the
following products for nonindustrial use
that contain not less than 7 percent and
not more than 24 percent alcohol by
volume:
(1) Wine as defined in section 610 and
section 617 of the Revenue Act of 1918
(26 U.S.C. 5381–5392); and
(2) Other alcoholic beverages not so
defined, but made in the manner of
wine, including sparkling and
carbonated wine, wine made from
condensed grape must, wine made from
other agricultural products than the
juice of sound, ripe grapes, imitation
wine, compounds sold as wine,
vermouth, cider, perry, and sake´.
§ 4.24.2
Territorial extent.
The provisions of this part apply to
the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.
§ 4.34.3 General requirements and
prohibitions under the FAA Act.
(a) Certificates of label approval
(COLAs). Subject to the requirements
and exceptions set forth in the
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regulations in subpart B of this part, any
bottler of wine, and any person who
removes wine in containers from
customs custody for sale or any other
commercial purpose, is required to first
obtain from TTB a COLA covering the
label(s) on each container.
(b) Alteration, mutilation, destruction,
obliteration, or removal of labels.
Subject to the requirements and
exceptions set forth in the regulations in
subpart C of this part, it is unlawful to
alter, mutilate, destroy, obliterate, or
remove labels on wine containers. This
prohibition applies to any person,
including retailers, holding wine for
sale in interstate or foreign commerce or
any person holding wine for sale after
shipment in interstate or foreign
commerce.
(c) Labeling requirements for wine. It
is unlawful for any person engaged in
business as a producer, blender,
importer, or wholesaler of wine, directly
or indirectly, or through an affiliate, to
sell or ship, or deliver for sale or
shipment, or otherwise introduce or
receive, in interstate or foreign
commerce, or remove from customs
custody, any wine in containers, unless
the wine is bottled in containers, and
the containers are marked, branded, and
labeled, in conformity with the
regulations in this part.
(d) Labeled in accordance with this
part. In order to be labeled in
accordance with the regulations in this
part, a container of wine must be in
compliance with the following
requirements:
(1) It must bear one or more labels
meeting the standards for ‘‘labels’’ set
forth in subpart D of this part;
(2) One or more of the labels on a
container must include the mandatory
information set forth in subpart E of this
part;
(3) Claims on any label(s), container,
or packaging (as defined in § 4.81) must
comply with the rules for regulated
label statements, as applicable, set forth
in subpart F of this part;
(4) Statements or any other
representations on any wine label,
container, or packaging (as defined in
§§ 4.101 and 4.121) may not violate the
regulations in subparts G and H of this
part regarding certain practices on
labeling of wine;
(5) The class and type designation on
the label(s), as well as any designation
appearing on containers or packaging,
must comply with the standards of
identity set forth in subpart I of this
part; and
(6) The wine in the container must
not be adulterated within the meaning
of the Federal Food, Drug, and Cosmetic
Act.
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(e) Bottled in accordance with this
part. In order to be bottled in
accordance with the regulations in this
part, the wine must be bottled in
authorized standards of fill in
containers that meet the requirements of
subpart K.
§ 4.44.4
[Reserved]
§ 4.54.5
Wines covered by this part.
The regulations in this part apply to
wine containing not less than 7 percent
and not more than 24 percent alcohol by
volume.
§ 4.64.6 Products produced as wine that
are not covered by this part.
Certain wine products do not fall
within the definition of a ‘‘wine’’ under
the FAA Act and are thus not subject to
this part. See § 4.7 for related TTB
regulations that may apply to these
products. See §§ 24.10 and 27.11 of this
chapter for the definition of ‘‘wine’’
under the Internal Revenue Code.
(a) Products containing less than 7
percent alcohol by volume. The
regulations in this part do not cover
products that would otherwise meet the
definition of wine except that they
contain less than 7 percent alcohol by
volume. Bottlers and importers of
alcohol beverages that do not fall within
the definition of malt beverages, wine,
or distilled spirits under the FAA Act
should refer to the applicable labeling
regulations for foods issued by the U.S.
Food and Drug Administration. See 21
CFR part 101.
(b) Products containing more than 24
percent alcohol by volume. Products
that would otherwise meet the
definition of wine except that they
contain more than 24 percent alcohol by
volume are classified as distilled spirits
and must be labeled in accordance with
part 5 of this chapter.
§ 4.74.7 Other TTB labeling regulations
that apply to wine.
In addition to the regulations in this
part, wine must also comply with the
TTB labeling regulations in paragraphs
(a) and (b) of this section:
(a) Health warning statement.
Alcoholic beverages, including wine,
that contain at least one-half of one
percent alcohol by volume, must be
labeled with a health warning statement
in accordance with the Alcoholic
Beverage Labeling Act of 1988 (ABLA).
The regulations implementing the
ABLA are contained in 27 CFR part 16.
(b) Internal Revenue Code
requirements. The labeling and marking
requirements for wine under the
Internal Revenue Code are found in 27
CFR part 24, subpart L (for domestic
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wine premises) and 27 CFR part 27,
subpart E (for imports).
§ 4.84.8
Wine for export.
Wine that is exported in bond without
payment of tax directly from a bonded
wine premises or from customs custody
is not subject to this part. For purposes
of this section, direct exportation in
bond does not include exportation after
wine has been removed for
consumption or sale in the United
States, with appropriate tax
determination or payment.
§ 4.94.9 Compliance with Federal and
State requirements.
(a) General. Compliance with the
requirements of this part relating to the
labeling and bottling of wine does not
relieve industry members from
responsibility for complying with other
applicable Federal and State
requirements, including but not limited
to those highlighted in paragraphs (b)
and (c) of this section.
(b) Ingredient safety. While it remains
the responsibility of the industry
member to ensure that any ingredient
used in production of wine complies
fully with all applicable U.S. Food and
Drug Administration (FDA) regulations
pertaining to the safety of food
ingredients and additives, the
appropriate TTB officer may at any time
request documentation to establish such
compliance. As set forth in § 4.3(d),
wines that are adulterated under the
Federal Food, Drug, and Cosmetic Act
are not labeled in accordance with this
part.
(c) Containers. While it remains the
responsibility of the industry member to
ensure that containers are made of
suitable materials that comply with all
applicable FDA health and safety
regulations for the packaging of
beverages for consumption, the
appropriate TTB officer may at any time
request documentation to establish such
compliance.
§ 4.10
Other related regulations.
(a) TTB regulations. Other TTB
regulations that relate to wine are listed
in paragraphs (a)(1) through (11) of this
section:
(1) 27 CFR Part 1—Basic Permit
Requirements Under the Federal
Alcohol Administration Act,
Nonindustrial Use of Distilled Spirits
and Wine, Bulk Sales and Bottling of
Distilled Spirits;
(2) 27 CFR Part 9—American
Viticultural Areas;
(3) 27 CFR Part 12—Foreign
Nongeneric Names of Geographic
Significance Used in the Designation of
Wines;
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(4) 27 CFR Part 13—Labeling
Proceedings;
(5) 27 CFR Part 14—Advertising of
Alcohol Beverage Products;
(6) 27 CFR Part 16—Alcoholic
Beverage Health Warning Statement;
(7) 27 CFR Part 24—Wine;
(8) 27 CFR Part 26—Liquors and
Articles From Puerto Rico and the
Virgin Islands;
(9) 27 CFR Part 27—Importation of
Distilled Spirits, Wines, and Beer;
(10) 27 CFR Part 28—Exportation of
Alcohol; and
(11) 27 CFR Part 71—Rules of Practice
in Permit Proceedings.
(b) Other Federal regulations. The
regulations listed in paragraphs (b)(1)
through (9) of this section issued by
other Federal agencies also may apply:
(1) 7 CFR Part 205—National Organic
Program;
(2) 19 CFR Part 11—Packing and
Stamping; Marking;
(3) 19 CFR Part 102—Rules of Origin;
(4) 19 CFR Part 134—Country of
Origin Marking;
(5) 21 CFR Part 1—General
Enforcement Provisions, Subpart H,
Registration of Food Facilities, and
Subpart I, Prior Notice of Imported
Food;
(6) 21 CFR Parts 70–82, which pertain
to food and color additives;
(7) 21 CFR Part 101—Food Labeling;
(8) 21 CFR Part 110—Current Good
Manufacturing Practice in
Manufacturing Packing, or Holding
Human Food; and
(9) 21 CFR Parts 170–189, which
pertain to food additives and secondary
direct food additives.
§ 4.12
§ 4.11
§ 4.22 Rules regarding certificates of label
approval (COLAs) for wine bottled in the
United States.
Forms.
(a) General. TTB prescribes and
makes available all forms required by
this part. Any person completing a form
must provide all of the information
required by each form as indicated by
the headings on the form and the
instructions for the form. Each form
must be filed in accordance with this
part and the instructions for the form.
(b) Electronically filing forms. The
forms required by this part can be filed
electronically by using TTB’s online
filing systems: COLAs Online and
Formulas Online. Anyone who intends
to use one of these online filing systems
must first register to use the system by
accessing the TTB website at https://
www.ttb.gov.
(c) Obtaining paper forms. Forms
required by this part are available for
printing through the TTB website
(https://www.ttb.gov) or by mailing a
request to the Alcohol and Tobacco Tax
and Trade Bureau, National Revenue
Center, 550 Main Street, Room 8002,
Cincinnati, OH 45202.
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Delegations of the Administrator.
Most of the regulatory authorities of
the Administrator contained in this part
are delegated to ‘‘appropriate TTB
officers.’’ To find out which officers
have been delegated specific authorities,
see the current version of TTB Order
1135.4, Delegation of the
Administrator’s Authorities in 27 CFR
part 4, Labeling of Wine. Copies of this
order can be obtained by accessing the
TTB website (https://www.ttb.gov) or by
mailing a request to the Alcohol and
Tobacco Tax and Trade Bureau,
National Revenue Center, 550 Main
Street, Room 8002, Cincinnati, OH
45202.
Subpart B—Certificates of Label
Approval and Certificates of
Exemption From Label Approval
Requirements for Wine Bottled in the
United States
§ 4.21 Requirement for certificates of label
approval (COLAs) for wine bottled in the
United States.
(a) This section applies to wine
bottled in the United States, outside of
customs custody.
(b) No person may bottle wine
without first applying for and obtaining
a certificate of label approval issued by
the appropriate TTB officer. This
requirement applies to wine produced
and bottled in the United States and to
wine imported in bulk and bottled in
the United States. Bottlers may obtain
an exemption from this requirement
only if they satisfy the conditions set
forth in § 4.23.
(a) What a COLA authorizes. An
approved TTB Form 5100.31 authorizes
the bottling of a wine covered by the
COLA as long as the container bears
labels identical to the labels appearing
on the face of the COLA, or labels with
changes authorized by TTB on the
COLA or otherwise. The list of
allowable changes can be found at
https://www.ttb.gov.
(b) What a COLA does not do. Among
other things, the issuance of a COLA
does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from
its responsibility to ensure that all
ingredients used in the production of
the wine comply with applicable
requirements of the U.S. Food and Drug
Administration with regard to
ingredient safety; or
(3) Relieve the certificate holder from
liability for violations of the FAA Act,
the Alcoholic Beverage Labeling Act,
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the Internal Revenue Code, or related
regulations and rulings.
(i) The issuance of a COLA does not
mean that TTB has verified the accuracy
of any representations or claims made
on the label with respect to the product
in the container. It is the responsibility
of the applicant to ensure that all
information on the application is true
and correct, and that all labeling
representations and claims are truthful,
accurate, and not misleading with
respect to the product in the container.
(ii) A wine may be mislabeled even
when the label is covered by a COLA.
For example, if the label on the
container contains representations that
are false or misleading when applied to
the product in the container, the wine
is not labeled in accordance with the
regulations in this part, even if it is
covered by a COLA.
(c) When to obtain a COLA. The
COLA must be obtained prior to
bottling. No producer or blender of
wine, proprietor of bonded wine
premises or proprietor of a taxpaid wine
bottling house may bottle wine, or
remove wine from the premises where
bottled, unless a COLA has been
obtained.
(d) Application for a COLA. The
bottler may apply for a COLA by
submitting an application to TTB on
Form 5100.31, in accordance with the
instructions on the form. The bottler
may apply for a COLA either
electronically by accessing TTB’s online
system, COLAs Online, at TTB’s website
(https://www.ttb.gov) or by submitting
the paper form. For procedures
regarding the issuance of COLAs, see
part 13 of this chapter.
§ 4.23 Application for exemption from
label approval for wines bottled in the
United States.
(a) Exemption. A producer or blender
of wine, proprietor of bonded wine
premises, or proprietor of a taxpaid
wine bottling house may apply for
exemption from the labeling
requirements of this part, if the bottler
shows, to the satisfaction of the
appropriate TTB officer, that the wine to
be bottled will be offered for sale only
within the State in which it is bottled
and will not be sold, offered for sale, or
shipped or delivered for shipment, or
otherwise introduced, in interstate or
foreign commerce.
(b) Application required. The bottler
must file an application on TTB Form
5100.31 for exemption from label
approval before bottling the wine. The
bottler may apply for a certificate of
exemption from label approval either
electronically, by accessing TTB’s
online system, COLAs Online, at
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https://www.ttb.gov, or by using the
paper form. For procedures regarding
the issuance of certificates of exemption
from label approval, see part 13 of this
chapter.
(c) Labeling of wines covered by
certificate of exemption. The
application for a certificate of
exemption from label approval requires
that the applicant identify the State in
which the product will be sold. As a
condition of receiving exemption from
label approval, the label covered by an
approved certificate of exemption must
include the statement ‘‘For sale in
[name of State] only.’’ See § 24.257 of
this chapter for additional labeling rules
that apply to wines covered by a
certificate of exemption.
Requirements for Wine Imported in
Containers
§ 4.24 Certificates of label approval
(COLAs) for wine imported in containers.
(a) Application requirement. Any
person removing wine in containers
from customs custody for consumption
must first apply for and obtain a COLA
covering the wine from the appropriate
TTB officer.
(b) Release of wine from customs
custody. Wine imported in containers is
not eligible for release from customs
custody for consumption, and no person
may remove such wine from customs
custody for consumption, unless the
person removing the wine has obtained
and is in possession of a COLA covering
the wine.
(c) Filling requirements. If filing
electronically, the importer must file
with U.S. Customs and Border
Protection (CBP), at the time of filing the
customs entry, the TTB-assigned
identification number of the valid COLA
that corresponds to the label on the
brand or lot of wine to be imported. If
the importer is not filing electronically,
the importer must provide a copy of the
COLA to CBP at the time of entry. In
addition, the importer must provide a
copy of the applicable COLA, and proof
of the certificate holder’s authorization
if applicable, upon request by the
appropriate TTB officer or a customs
officer.
(d) Scope of this section. The COLA
requirement imposed by this section
applies only to wine that is removed for
sale or any other commercial purpose.
Wine that is imported in containers is
not eligible for a certificate of exemption
from label approval. See 27 CFR 27.49,
27.74, and 27.75 for labeling exemptions
applicable to certain imported samples
of wine.
(e) Relabeling in customs custody.
Containers of wine in customs custody
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that are required to be covered by a
COLA but are not labeled in conformity
with a COLA must be relabeled, under
the supervision and direction of
customs officers, prior to their removal
from customs custody for consumption.
§ 4.25 Rules regarding certificates of label
approval (COLAs) for wine imported in
containers.
(a) What a COLA authorizes. An
approved TTB Form 5100.31 authorizes
the use of the labels covered by the
COLA on containers of wine, as long as
the container bears labels identical to
the labels appearing on the face of the
COLA, or labels with changes
authorized by the form or otherwise
authorized by TTB.
(b) What a COLA does not do. Among
other things, the issuance of a COLA
does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from
its responsibility to ensure that all
ingredients used in the production of
the wine comply with applicable
requirements of the U.S. Food and Drug
Administration with regard to
ingredient safety; or
(3) Relieve the certificate holder from
liability for violations of the FAA Act,
the Alcoholic Beverage Labeling Act,
the Internal Revenue Code, or related
regulations and rulings.
(i) The issuance of a COLA does not
mean that TTB has verified the accuracy
of any representations or claims made
on the label with respect to the product
in the container. It is the responsibility
of the applicant to ensure that all
information on the application is true
and correct and that all labeling
representations and claims are truthful,
accurate, and not misleading with
respect to the product in the container.
(ii) A wine may be mislabeled even
when the label is covered by a COLA.
For example, if the label on the
container contains representations that
are false or misleading when applied to
the product in the container, the wine
is not labeled in accordance with the
regulations in this part, even if it is
covered by a COLA.
(c) When to obtain a COLA. The
COLA must be obtained prior to the
removal of wine in containers from
customs custody for consumption.
(d) Application for a COLA. The
person responsible for the importation
of wine must obtain approval of the
labels by submitting an application to
TTB on Form 5100.31. A person may
apply for a COLA either electronically
by accessing TTB’s online system,
COLAs Online, at TTB’s website
(https://www.ttb.gov) or by submitting
the paper form. For procedures
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regarding the issuance of COLAs, see
part 13 of this chapter.
Administrative Rules
§ 4.27 Presenting Certificates of Label
Approval (COLAs) to Government officials.
A certificate holder must present the
original or a paper or electronic copy of
the appropriate COLA upon the request
of any duly authorized representative of
the United States Government.
§ 4.28 Formulas, samples, and
documentation.
(a) Prior to or in conjunction with the
review of an application for a COLA on
TTB Form 5100.31, the appropriate TTB
officer may require a bottler or importer
to submit a formula, the results of
laboratory testing of the wine, or a
sample of any wine or ingredients used
in producing a wine. The appropriate
TTB officer also may request such
information or samples after the
issuance of such COLA, or in
connection with any wine that is
required to be covered by a COLA. A
formula may be filed electronically by
using Formulas Online, or it may be
submitted on paper on Form 5100.51.
See § 4.11 for more information on
forms and Formulas Online.
(b) Upon request of the appropriate
TTB officer, a bottler or importer must
submit a full and accurate statement of
the contents of any container to which
labels are to be or have been affixed, as
well as any other documentation on any
issue pertaining to whether the wine is
labeled in accordance with this part.
§ 4.29
Personalized labels.
(a) General. Applicants for label
approval may obtain permission from
TTB to make certain changes in order to
personalize labels without having to
resubmit labels for TTB approval.
Personalized labels may contain a
personal message, picture, or other
artwork that is specific to the consumer
who is purchasing the product. For
example, a winery may offer individual
or corporate customers labels that
commemorate an event such as a
wedding or grand opening.
(b) Application. Any person who
intends to offer personalized labels must
submit a template for the personalized
label with the application for label
approval, and must note on the
application a description of the specific
personalized information that may
change.
(c) Approval of personalized label. If
the application complies with the
regulations, TTB will issue a certificate
of label approval (COLA) with a
qualification allowing the
personalization of labels. The
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qualification will allow the certificate
holder to add or change items on the
personalized label such as salutations,
names, graphics, artwork,
congratulatory dates and names, or
event dates without applying for a new
COLA. All of these items on
personalized labels must comply with
the regulations of this part.
(d) Changes not allowed to
personalized labels. Approval of an
application to personalize labels does
not authorize the addition of any
information that discusses either the
alcohol beverage or characteristics of the
alcohol beverage or that is inconsistent
with or in violation of the provisions of
this part or any other applicable
provision of law or regulations.
§ 4.30 Certificates of origin, identity, and
proper cellar treatment of wine.
(a) Certificate of origin and identity.
Wine imported in containers is not
eligible for release from customs
custody for consumption, and no person
may remove such wine from customs
custody for consumption, unless that
person has obtained and is in
possession of an invoice accompanied
by a certificate of origin issued by an
official duly authorized by the
appropriate foreign government, if that
country requires the issuance of such a
certificate for wine exported from that
country. The certificate must certify as
to the identity of the wine and that the
wine has been produced in compliance
with the laws of the foreign country
regulating the production of the wine
for home consumption.
(b) Certification of proper cellar
treatment of natural wine—(1) General.
An importer of wine may be required to
have in its possession at the time of
release of the wine from customs
custody a certification, or may have to
comply with other conditions
prescribed in § 27.140 of this chapter,
regarding proper cellar treatment. If
certification is required for imported
wine under § 27.140 of this chapter, the
importer must provide a copy of that
certification to TTB as follows:
(i) The importer must include a copy
of the certification with the application
for a certificate of label approval (COLA)
for the wine that is submitted under
§ 13.21 of this chapter; or
(ii) If a certification for the wine in
question was not available when the
importer submitted the application for
label approval, the importer must
submit a copy of the certification to the
appropriate TTB officer before the first
shipment of the wine is released from
customs custody.
(2) Validity of certification. A
certification submitted under paragraph
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(b)(1) of this section is valid for multiple
shipments of imported wine as long as
the wine is of the same brand and class
or type; was made by the same
producer; was subjected to the same
cellar treatment; and conforms to the
statements made on the certification.
Accordingly, if the cellar treatment
applied to the wine changes and a new
certification under § 27.140 of this
chapter is required, the importer must
submit a new certification to TTB even
if a new COLA is not required.
(3) Use of certification. TTB may use
the information from a certification for
purposes of verifying the appropriate
class and type designation of the wine
under the labeling provisions of this
part. TTB will make certifications
submitted under paragraph (b)(1) of this
section available to the public on the
TTB website at https://www.ttb.gov.
(c) Retention of certificates—wine
imported in containers. The importer of
wine imported in containers must retain
for five years following the date of the
removal of the bottled wine from
customs custody copies of the
certificates (and accompanying invoices,
if required) required by paragraphs (a)
and (b) of this section, and must provide
them upon request of the appropriate
TTB officer or a customs officer.
(d) Wine imported in bulk for bottling
in the United States. Wine that would
be required under paragraphs (a) and (b)
of this section to be covered by a
certificate of origin and identity and/or
a certification of proper cellar treatment
and that is imported in bulk for bottling
in the United States may be removed
from the premises where bottled only if
the bottler possesses a certificate of
origin and identity and/or a certification
of proper cellar treatment of natural
wine applicable to the wine, issued by
the appropriate entity as set forth in
paragraphs (a) and (b) of this section
and § 27.140 of this chapter
respectively, applicable to the wine that
provides the same information as a
certificate required under paragraphs (a)
and (b) of this section and § 27.140 of
this chapter, would provide for like
wine imported in bottles.
(e) Retention of wine certificates—
wine in bulk. The bottler of wine
imported in bulk must retain, for five
years following the removal of such
wine from the premises where bottled,
copies of the certificates required by
paragraphs (a) and (b) of this section,
and must provide them upon request of
the appropriate TTB officer.
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Subpart C—Alteration of Labels,
Relabeling, and Adding Information to
Containers
§ 4.41
Alteration of labels.
(a) Prohibition. It is unlawful for any
person to alter, mutilate, destroy,
obliterate or remove any mark, brand, or
label on wine in containers held for sale
in interstate or foreign commerce, or
held for sale after shipment in interstate
or foreign commerce, except as
authorized by § 4.42, § 4.43, or § 4.44, or
as otherwise authorized by Federal law.
(b) Authorized relabeling. For
purposes of the relabeling activities
authorized by this subpart, the term
‘‘relabel’’ includes the alteration,
mutilation, destruction, obliteration, or
removal of any existing mark, brand, or
label on the container, as well as the
addition of a new label (such as a sticker
that adds information about the product
or information engraved on the
container) to the container, and the
replacement of a label with a new label
bearing identical information.
(c) Obligation to comply with other
requirements. Authorization to relabel
under this subpart in no way authorizes
the placement of labels on containers
that do not accurately reflect the brand,
bottler, identity, or other characteristics
of the product; nor does it relieve the
person conducting the relabeling
operations from any obligation to
comply the regulations in this part and
with State or local law, or to obtain
permission from the owner of the brand
where otherwise required.
§ 4.42 Authorized relabeling activities by
proprietors of bonded wine premises and
importers.
(a) Relabeling at bonded wine
premises. Proprietors of bonded wine
premises may relabel domestically
bottled wine prior to removal from, and
after return to bond at, the bonded wine
premises, with labels covered by a
certificate of label approval (COLA)
without obtaining separate permission
from TTB for the relabeling activity.
(b) Relabeling after removal from
bonded wine premises. Proprietors of
bonded wine premises may relabel
domestically bottled wine after removal
from bonded wine premises with labels
covered by a COLA, without obtaining
separate permission from TTB for the
relabeling activity.
(c) Relabeling in customs custody.
Under the supervision of customs
officers, imported wine in containers in
customs custody may be relabeled
without obtaining separate permission
from TTB for the relabeling activity.
Such containers must bear labels
covered by a COLA upon their removal
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from customs custody for consumption.
See § 4.24(b).
(d) Relabeling after removal from
customs custody. Imported wine in
containers may be relabeled by the
importer thereof after removal from
customs custody without obtaining
separate permission from TTB for the
relabeling activity, as long as the labels
are covered by a COLA.
§ 4.43 Relabeling activities that require
separate written authorization from TTB.
Any persons holding wine for sale
who need to relabel the containers but
are not eligible to obtain a certificate of
label approval to cover the labels that
they wish to affix to the containers may
apply for written permission for the
relabeling of wine containers. The
appropriate TTB officer may permit
relabeling of wine in containers if the
facts show that the relabeling is for the
purpose of compliance with the
requirements of this part or State law.
The written application must include
copies of the original and proposed new
labels; the circumstances of the request,
including the reason for relabeling; the
number of containers to be relabeled;
the location where the relabeling will
take place; and the name and address of
the person who will be conducting the
relabeling operations.
§ 4.44 Adding a label or other information
to a container that identifies the wholesaler,
retailer, or consumer.
Any label or other information that
identifies the wholesaler, retailer, or
consumer of the wine may be added to
containers (by the addition of stickers,
engraving, stenciling, etc.) without prior
approval from TTB and without being
covered by a certificate of label approval
or certificate of exemption from label
approval. Such information may be
added before or after the containers
have been removed from bonded wine
premises or released from customs
custody. The information added:
(a) May not violate the provisions of
subpart F, G, or H of this part;
(b) May not contain any reference to
the characteristics of the product; and
(c) May not be added to the container
in such a way that it obscures any other
labels on the container.
Subpart D—Label Standards
§ 4.51
Firmly affixed requirements.
Any label that is not an integral part
of the container must be affixed to the
container in such a way that it cannot
be removed without thorough
application of water or other solvents.
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60621
§ 4.52 Legibility and other requirements
for mandatory information on labels.
(a) Readily legible. Mandatory
information on labels must be readily
legible to potential consumers under
ordinary conditions.
(b) Separate and apart. Mandatory
information on labels, except brand
names, must be separate and apart from
any additional information. This does
not preclude the addition of brief
optional phrases of additional
information as part of the class or type
designation (such as, ‘‘premium wine’’),
the name and address statement (such
as, ‘‘Proudly produced and bottled by
ABC Winemaking Co. in Napa, CA, for
over 30 years’’) or other information
required by § 4.63(a) and (b), as long as
the additional information does not
detract from the prominence of the
mandatory information. The statements
required by § 4.63(c) may not include
additional information.
(c) Contrasting background.
Mandatory information must appear in
a color that contrasts with the
background on which it appears, except
that if the net contents are blown into
a glass container, they need not be
contrasting. The color of the container
and of the wine must be taken into
account if the label is transparent or if
mandatory label information is etched,
engraved, sandblasted, or otherwise
carved into the surface of the container
or is branded, stenciled, painted,
printed, or otherwise directly applied
on to the surface of the container.
Examples of acceptable contrasts are:
(1) Black lettering appearing on a
white or cream background; or
(2) White or cream lettering appearing
on a black background.
(d) Capitalization. Except for the
aspartame statement when required by
§ 4.63(b)(4), which must appear in all
capital letters, mandatory information
prescribed by this part may appear in all
capital letters, in all lower-case letters,
or in mixed-case using both capital and
lower-case letters.
§ 4.53
Type size of mandatory information.
All capital and lowercase letters in
statements of mandatory information on
labels must meet the following type size
requirements:
(a) Minimum type size—(1)
Containers of more than 187 milliliters.
All mandatory information (including
the alcohol content statement) must be
in script, type, or printing that is at least
two millimeters in height.
(2) Containers of 187 milliliters or
less. All mandatory information
(including the alcohol content
statement) must be in script, type, or
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printing that is at least one millimeter
in height.
(b) Maximum type size for alcohol
content statement. The alcohol content
statement on containers of five liters or
less may not appear in script, type, or
printing that is more than three
millimeters in height.
§ 4.54
Visibility of mandatory information.
Mandatory information on a label
must be readily visible and may not be
covered or obscured in whole or in part.
See § 4.62 for rules regarding packaging
of containers (including cartons,
coverings, and cases). See part 14 of this
chapter for regulations pertaining to
advertising materials.
§ 4.55
Language requirements.
(a) General. Mandatory information
must appear in the English language,
with the exception of the brand name
and except as provided in paragraphs (c)
and (d) of this section.
(b) Foreign languages. Additional
statements in a foreign language,
including translations of mandatory
information that appears elsewhere in
English on the label, are allowed on
labels and containers as long as they do
not in any way conflict with, or
contradict, the requirements of this part.
(c) Wine for consumption in the
Commonwealth of Puerto Rico.
Mandatory information may be stated
solely in the Spanish language on labels
of wine bottled for consumption within
the Commonwealth of Puerto Rico.
(d) Exception for country of origin.
The country or countries of origin may
appear in a language other than English
when allowed by U.S. Customs and
Border Protection regulations.
§ 4.56
Additional information.
Information (other than mandatory
information) that is truthful, accurate,
and specific, and that does not violate
subpart F, G, or H of this part, may
appear on labels. Such additional
information may not conflict with,
modify, qualify or restrict mandatory
information in any manner.
Subpart E—Mandatory Label
Information
§ 4.61 What constitutes a label for
purposes of mandatory information.
(a) Label. Certain information as
outlined in § 4.63, must appear on a
label. When used in this part for
purposes of determining where
mandatory information must appear, the
term ‘‘label’’ includes:
(1) Material affixed to the container,
whether made of paper, plastic film, or
other matter;
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(2) For purposes of the net contents
statement and the name and address
statement only, information blown,
embossed, or molded into the container
as part of the process of manufacturing
the container;
(3) Information etched, engraved,
sandblasted, or otherwise carved into
the surface of the container; and
(4) Information branded, stenciled,
painted, printed, or otherwise directly
applied onto the surface of the
container.
(b) Information appearing elsewhere
on the container. Information appearing
on the following parts of the container
is subject to all of the restrictions and
prohibitions set forth in subparts F, G,
and H of this part, but will not satisfy
any requirements for mandatory
information that must appear on labels
in this part:
(1) Material affixed to, or information
appearing on, the bottom surface of the
container;
(2) Caps, corks, or other closures
unless authorized to bear mandatory
information by the appropriate TTB
officer; and
(3) Foil or heat shrink bottle capsules.
(c) Materials not firmly affixed to the
container. Any materials that
accompany the container to the
consumer but are not firmly affixed to
the container, including booklets,
leaflets, and hang tags, are not ‘‘labels’’
for purposes of this part. Such materials
are instead subject to the advertising
regulations in part 14 of this chapter.
§ 4.62 Packaging (cartons, coverings, and
cases).
(a) General. The term ‘‘packaging’’
includes any covering, carton, case,
carrier, or other packaging of wine
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Prohibition. Any packaging of
wine containers may not contain any
statement, design, device, or graphic,
pictorial, or emblematic representation
that violates the provisions of subpart F,
G, or H of this part.
(c) Requirements for closed
packaging. If containers are enclosed in
closed packaging, including sealed
opaque coverings, cartons, cases,
carriers, or other packaging used for sale
at retail, such packaging must bear all
mandatory label information required
on the label under § 4.63.
(1) Packaging is considered closed if
the consumer must open, rip, untie,
unzip, or otherwise manipulate the
package to remove the container in
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order to view any of the mandatory
information.
(2) Packaging is not considered closed
if a consumer could view all of the
mandatory information on the container
by merely lifting the container up, or if
the packaging is transparent or designed
in a way that all of the mandatory
information can be easily read by the
consumer without having to open, rip,
untie, unzip, or otherwise manipulate
the package.
(d) Packaging that is not closed. The
following requirements apply to
packaging that is not closed.
(1) The packaging may display any
information that is not in conflict with
the label on the container that is inside
the packaging.
(2) If the packaging displays a brand
name, it must display the brand name
in its entirety. For example, if a brand
name is required to be modified with
additional information on the container,
the packaging must also display the
same modifying language.
(3) If the packaging displays a class or
type designation, it must be identical to
the class or type designation appearing
on the container. For example, if the
packaging displays a class or type
designation for a specialty product for
which a statement of composition is
required on the container, the packaging
must include the statement of
composition as well.
(e) Labeling of containers within the
packaging. The container within the
packaging is subject to all labeling
requirements of this part, including
mandatory labeling information
requirements, regardless of whether the
packaging bears such information.
§ 4.63
Mandatory label information.
(a) Mandatory information. Wine
containers must bear a label or labels (as
defined in § 4.61(a)) containing the
following information:
(1) Brand name in accordance with
§ 4.64;
(2) Class, type, or other designation,
in accordance with subpart I of this part;
(3) Alcohol content, in accordance
with § 4.65;
(4) A statement of the origin and
percentage by volume of imported wine
on blends of American and imported
wine, if any reference is made to the
presence of imported wine on the
container;
(5) Name and address of the bottler or
importer, in accordance with § 4.66,
§ 4.67, or § 4.68 as applicable; and
(6) Net contents (which may be
blown, embossed, or molded into the
container as part of the process of
manufacturing the container) in
accordance with § 4.70.
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(b) Appellations of origin. An
appellation of origin in accordance with
§§ 4.88 through 4.91 of this part must be
stated on the label of each container in
the same field of vision as the class,
type, or other designation prescribed by
paragraph (a)(2) of this section if:
(1) A grape wine is labeled with a
class, type or other designation pursuant
to § 4.62(a)(2) that is:
(i) A varietal (grape type), as provided
for in § 4.156;
(ii) A type designation of varietal
significance, as provided in § 4.157;
(iii) A semi-generic type designation,
as provided in § 4.184; or
(2) The wine is labeled with a vintage
date, pursuant to § 4.95.
(c) Disclosure of certain ingredients.
Certain ingredients must be declared on
a label, without the inclusion of any
additional information as part of the
statement, as follows:
(1) FD&C Yellow No. 5. If a wine
contains the coloring material FD&C
Yellow No. 5, the label must include a
statement to that effect, such as ‘‘’’FD&C
Yellow No. 5’’ or ‘‘Contains FD&C
Yellow No. 5.’’
(2) Cochineal extract or carmine. If a
wine contains the color additive
cochineal extract or the color additive
carmine, the label must include a
statement to that effect, using the
respective common or usual name (such
as, ‘‘contains cochineal extract’’ or
‘‘contains carmine’’). This requirement
applies to labels when either of the
coloring materials is used in wine that
is removed from bottling premises or
from customs custody on or after April
16, 2013.
(3) Sulfites. If a wine contains 10 or
more parts per million of sulfur dioxide
or other sulfiting agent measured as
total sulfur dioxide, the label must
include a statement to that effect.
Examples of acceptable statements are
‘‘Contains sulfites’’ or ‘‘Contains (a)
sulfiting agent(s)’’ or a statement
identifying the specific sulfiting agent.
The alternative terms ‘‘sulphites’’ or
‘‘sulphiting’’ may be used.
(4) Aspartame. If the wine contains
aspartame, the label must include the
following statement, in capital letters,
separate and apart from all other
information: ‘‘PHENYLKETONURICS:
CONTAINS PHENYLALANINE.’’
§ 4.64
Brand name.
(a) Requirement. The wine label must
include a brand name. If the wine is not
sold under a brand name, the name of
the bottler or importer, as applicable,
appearing in the name and address
statement is treated as the brand name.
(b) Misleading brand names. Labels
may not include any misleading brand
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names. A brand name is misleading if it
creates (by itself or in association with
other printed or graphic matter) any
erroneous impression or inference as to
the age, origin, identity, or other
characteristics of the wine. A brand
name may be found to be misleading by
itself or in association with other
printed or graphic matter. With the
exception of geographic brand names
discussed in paragraph (c) of this
section, a brand name that would
otherwise be misleading may be
qualified with the word ‘‘brand’’ or with
some other qualification that adequately
dispels any misleading impression that
might otherwise be created.
(c) Geographic brand names. (1)
Except as otherwise provided in
paragraph (c)(2) of this section, a wine
container may not bear a brand name of
viticultural significance unless the wine
meets the appellation of origin
requirements for the geographic area
named. (See §§ 4.88–4.91 and §§ 4.96–
4.98 for the appellation of origin
requirements.)
(2) For brand names of viticultural
significance used in COLAs issued prior
to July 7, 1986, such a brand name may
appear on a wine container if:
(i) The wine meets the appellation of
origin requirements for the geographic
area named;
(ii) The wine is labeled with an
appellation of origin, in accordance
with §§ 4.88–4.91 and §§ 4.96–4.98, that
is:
(A) A county or a viticultural area, if
the brand name bears the name of a
geographic area smaller than a State; or
(B) A State, county, or a viticultural
area, if the brand name bears a State
name; or
(iii) The wine is labeled with some
other statement that the appropriate
TTB officer finds to be sufficient to
dispel the impression that the
geographic area suggested by the brand
name is indicative of the origin of the
wine.
(3) A name has viticultural
significance when it is the name of a
State or county (or of the foreign
equivalent of a State or county), when
it is approved as the name of a
viticultural area under part 9 of this
chapter, when it is approved by a
foreign government, or when it is found
to have viticultural significance by the
appropriate TTB officer. Unless
determined otherwise by the
appropriate TTB officer, a name that is
a county name will be considered to
have viticultural significance only when
the word ‘‘county’’ follows the name.
For example, while ‘‘Clark County’’ has
viticultural significance, the word
‘‘Clark’’ does not.
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§ 4.65
60623
Alcohol content.
(a) General. In the case of wine
containing 14 percent or less of alcohol
by volume, the percentage of alcohol by
volume must be stated unless the type
designation ‘‘table’’ wine (or ‘‘light’’
wine) appears on the label. In the case
of wines containing more than 14
percent of alcohol by volume, the
percentage of alcohol by volume must
be stated. Mandatory and optional
statements of alcohol content as a
percentage of alcohol by volume must
be made as prescribed in paragraph (b)
or (c) of this section. Other truthful,
accurate, and specific factual
representations of alcohol content, such
as alcohol by weight, may be made, as
long as they appear together with, and
as part of, the statement of alcohol
content as a percentage of alcohol by
volume.
(b) Format of the alcohol content
statement—(1) General. Except as
provided in paragraph (c) of this
section, the alcohol by volume
statement must be expressed in one of
the following formats:
(i) ‘‘Alcohol ll percent by volume’’;
(ii) ‘‘ll percent alcohol by volume’’;
or
(iii) ‘‘Alcohol by volume: ll
percent’’.
(2) Formatting rules. Any of the words
or symbols may be enclosed in
parentheses and authorized
abbreviations may be used with or
without a period. The alcohol content
statement does not have to appear with
quotation marks.
(3) Optional abbreviations. The
statements listed in paragraph (b) of this
section must appear as shown, except
that the following abbreviations may be
used: Alcohol may be abbreviated as
‘‘alc’’; percent may be represented by
the percent symbol ‘‘%’’; alcohol and
volume may be separated by a slash ‘‘/
’’ in lieu of the word ‘‘by’’; and volume
may be abbreviated as ‘‘vol.’’
(4) Examples. The following are
examples of alcohol content statements
that comply with the requirements of
this part:
(i) ‘‘13.2% alc/vol’’;
(ii) ‘‘Alc. 13.0 percent by vol.’’;
(iii) ‘‘Alc 13% by vol’’; and
(iv) ‘‘15.0% Alcohol by Volume.’’
(c) Use of a range as the alcohol
content statement—(1) General. The
alcohol content statement may be
expressed as a range in accordance with
the provisions of paragraph (c)(2) of this
section. For wine containing 14 percent
alcohol by volume or less, the alcohol
content may be stated as a range of three
percentage points. For wine containing
more than 14 percent alcohol by volume
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the alcohol content may be stated as a
range of two percentage points.
(2) Format of the alcohol content
statement using a range. If the alcohol
content statement is expressed as a
range, it must be made in one of the
following formats:
(i) Alcohol ll percent to ll
percent by volume,
(ii) ll to ll percent alcohol by
volume, or
(iii) Alcohol by volume: ll to ll
percent.
(3) Optional marks. Any of the words
or symbols may be enclosed in
parentheses, and authorized
abbreviations may be used with or
without a period.
(4) Optional abbreviations. Alcohol
may be abbreviated as ‘‘alc’’; percent
may be represented by the percent
symbol ‘‘%’’; alcohol and volume may
be separated by a slash ‘‘/’’ in lieu of the
word ‘‘by’’; the two alcohol content
numbers may be separated by a dash
‘‘–’’ instead of the word ‘‘to’’; and
volume may be abbreviated by ‘‘vol’’.
(5) Examples. The following are
examples of alcohol content statements
that comply with the requirements of
this part: ‘‘10 to 12 percent alcohol by
volume,’’ ‘‘10–12% (alc) by volume,’’
and ‘‘10 to 12 percent alc./vol.’’
(d) Tolerances for wine containing no
more than 14 percent alcohol by
volume. For specific statements of
alcohol content for wines containing no
more than 14 percent alcohol by
volume, except as provided for in
paragraph (f) of this section, the alcohol
by volume statement on the label must
be within 1.5 percentage points above or
below the actual alcohol content. For
example, an alcohol beverage with an
actual alcohol content of 10 percent
alcohol by volume would comply with
this tolerance if it were labeled with an
alcohol content statement between 8.5
and 11.5 percent alcohol by volume.
(e) Alcohol content statement
tolerances for wine containing more
than 14 percent alcohol by volume. For
specific numeric statements of alcohol
content for wines containing more than
14 percent alcohol by volume, except as
provided for in paragraph (f) of this
section, the alcohol by volume
statement on the label must be within
one percentage point above or below the
actual alcohol content. For example, an
alcohol beverage with an actual alcohol
content of 16 percent alcohol by volume
would comply with this tolerance if it
were labeled with an alcohol content
statement between 15 and 17 percent
alcohol by volume.
(f) Tolerances must not cut across tax
classes—(1) General. Regardless of the
type of statement used and regardless of
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tolerances normally permitted in direct
statements, and ranges normally
permitted in maximum and minimum
statements, alcohol content statements
must correctly indicate the tax class of
the wine so labeled. Nothing in this
section shall be construed as
authorizing the appearance upon the
labels of any wine of an alcohol content
statement in terms of maximum and
minimum percentages that overlaps a
prescribed limitation on the alcohol
content of any tax class.
(2) Tax classes and certain class and
type designations. The tolerances set
forth in this section shall not apply
where a minimum or maximum alcohol
content requirement is set forth in either
a tax classification of the product (found
in 26 U.S.C. 5041) or a class or type
designation in this part that reflects a
minimum or maximum alcohol content
requirement consistent with limits set
forth in a tax class. For example, the
class designation for ‘‘table wine’’ in
this part includes a maximum alcohol
content of 14 percent alcohol by
volume, which is consistent with the
maximum alcohol content for a class of
still wines under 26 U.S.C. 5041(b)(1).
Thus, a still grape wine that contains
14.2 percent alcohol by volume may not
be labeled as either a ‘‘table wine’’ or
with an alcohol content of 14 percent or
less, regardless of the tolerance
prescribed in this section.
§ 4.66 Name and address for domestically
bottled wine that was wholly fermented in
the United States.
(a) General. Domestically bottled wine
that was wholly fermented in the United
States and contains no imported wine
must be labeled in accordance with this
section. (See §§ 4.67 and 4.68 for name
and address requirements applicable to
wine that is not wholly fermented in the
United States.)
(b) Mandatory statement. The label on
containers must state the name of the
bottler and the city and State where
bottled, preceded by the phrases
‘‘bottled by,’’ ‘‘canned by,’’ ‘‘packed
by,’’ or ‘‘filled by,’’ followed by the
name of the bottler and the place where
bottled.
(c) Optional statements. In addition to
the statement required by paragraph (b)
of this section, the label may also:
(1) State the name and address of any
other person for whom the wine was
bottled, immediately preceded by the
words ‘‘bottled for’’ ‘‘canned for,’’
‘‘packed for,’’ or ‘‘filled for’’ or
‘‘distributed by’’;
(2) Contain additional words, as
specified and defined in paragraphs (d)
through (f) of this section. The use of
two or more of these words with the
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conjunction ‘‘and’’ and the use of any of
these words with the words ‘‘bottled
by’’ ‘‘canned by,’’ ‘‘packed by,’’ or
‘‘filled by’’ is permissible only if the
same person performed the defined
operation at the same address. More
than one name statement must appear if
the defined operation was performed by
a person other than the bottler, and
more than one address statement must
appear if the defined operation was
performed at a different address.
(d) Produced or Made. The terms
‘‘Produced’’ or ‘‘Made’’ mean that the
named winery:
(1) Fermented not less than 75 percent
of the wine at the stated address, or
(2) Changed the class or type of the
wine by addition of wine spirits,
brandy, flavors, colors, or artificial
carbonation at the stated address, or
(3) Produced sparkling wine by
secondary fermentation at the stated
address,
(e) Blended. The term ‘‘Blended’’
means that the named winery mixed the
wine with other wines of the same class
and type at the stated address,
(f) Cellared, Vinted, and Prepared.
The terms ‘‘Cellared,’’ ‘‘Vinted’’ and
‘‘Prepared’’ mean that the named
winery, at the stated address, subjected
the wine to cellar treatment in
accordance with § 4.154(c) of this part.
(g) Use of trade name. (1) A trade
name that appears on the basic permit
or other qualifying documentation may
be used only if the use of that name
would not create a misleading
impression as to the age, origin, or
identity of the product. For example,
when a bottler authorizes the use of its
trade name by another bottler that is not
under the same ownership, that trade
name may not be used on a label in a
way that tends to mislead consumers as
to the identity or location of the bottler.
(2) If the same brand of wine is
bottled by two bottlers that are not
under the same ownership, and each
has adopted the same trade name on its
basic permit pursuant to a contractual
arrangement, the name and address
statement must be worded in such a
way that the label does not create a
misleading impression as to the identity
or location of the bottling winery or
taxpaid wine bottling house.
(h) Form of address. (1) The address
consists of the city and State where the
referenced activity occurred, and must
be consistent with the address reflected
on the basic permit or other qualifying
documentation of the premises where
the activity occurred. Addresses may,
but are not required to, include
additional information such as street
names, counties, zip codes, phone
numbers, and website addresses.
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(2) The address for each activity that
is designated on the label must also be
shown. An example for a wine
produced in the United States would be
‘‘Produced at Gilroy, California, and
bottled at San Mateo, California, by XYZ
Winery.’’
(3) No additional places or addresses
may be stated for the same person
unless:
(i) That person is actively engaged in
the conduct of an additional bona fide
and actual alcohol beverage business at
such additional place or address, and
(ii) The label also contains
immediately adjacent to the address
appropriate descriptive material
indicating the function occurring at
each additional place or address in
connection with the particular product.
(4) The postal abbreviation of the
State name may be used; for example,
California may be abbreviated as CA.
§ 4.67 Name and address for domestically
bottled wine that was bottled after
importation.
(a) General. This section applies to
domestically bottled wine that was
bottled after importation. See § 4.68 for
name and address requirements
applicable to imported wine that is
imported in a container. See 19 CFR
parts 102 and 134 for U.S. Customs and
Border Protection country of origin
marking requirements.
(b) Domestically bottled wine that was
produced, made, or blended in the
United States. Domestically bottled
wine that was produced, made, or
blended (in accordance with the
definitions set forth in § 4.66) in the
United States after the wine (or a wine
in a blend of wines) was imported must
be labeled in accordance with the rules
set forth in § 4.66 regarding mandatory
and optional labeling statements.
(c) Wine bottled after importation
without blending or production
activities. The label on wine that is
bottled in the United States after
importation without being produced,
made or blended (in accordance with
the definitions set forth in § 4.66) in the
United States after the wine was
imported must state must state the
words ‘‘imported by’’ or a similar
appropriate phrase, followed by the
name and address of the importer. The
label must also state the words ‘‘bottled
by’’ or ‘‘packed by,’’ followed by the
name and address of the bottler, except
that the following phrases are
acceptable in lieu of the name and
address of the bottler under the
circumstances set forth below:
(1) If the wine was bottled for the
person responsible for the importation,
the words ‘‘imported by and bottled
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(canned, packed, or filled) in the United
States for’’ (or a similar appropriate
phrase) followed by the name and
address of the principal place of
business in the United States of the
person responsible for the importation;
or
(2) If the wine was bottled by the
person responsible for the importation,
the words ‘‘imported and bottled by’’
followed by the name and address of the
principal place of business in the
United States of the person responsible
for the importation.
(3) In the situations set forth in
paragraphs (c)(1) and (2) of this section,
the address shown on the label may be
that of the principal place of business of
the importer who is also the bottler,
provided that the address shown is a
location where bottling takes place.
(d) Use of trade name. (1) A trade
name that appears on the basic permit
or other qualifying documentation may
be used only if the use of that name
would not create a misleading
impression as to the age, origin, or
identity of the product. For example,
when a bottler authorizes the use of its
trade name by another bottler that is not
under the same ownership, that trade
name may not be used on a label in a
way that tends to mislead consumers as
to the identity or location of the bottler.
(2) If the same brand of wine is
bottled by two bottlers that are not
under the same ownership, and each
has adopted the same trade name on its
basic permit pursuant to a contractual
arrangement, the name and address
statement must be worded in such a
way that the label does not create a
misleading impression as to the identity
or location of the bottling winery or
taxpaid wine bottling house.
(e) Form of address. (1) The address
consists of the city and State where the
referenced activity occurred, and must
be consistent with the address reflected
on the basic permit or other qualifying
documentation of the premises where
the activity occurred. Addresses may,
but are not required to, include
additional information such as street
names, counties, zip codes, phone
numbers, and website addresses.
(2) The postal abbreviation of the
State name may be used; for example,
California may be abbreviated as CA.
§ 4.68 Name and address for wine that was
imported in a container.
(a) General. This section applies to
wine that is imported in a container, as
defined in § 4.1 of this part. See § 4.67
for rules regarding name and address
requirements applicable to wine that is
domestically bottled after importation.
See 19 CFR parts 102 and 134 for U.S.
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60625
Customs and Border Protection country
of origin marking requirements.
(b) Mandatory labeling statement. The
labels on wines imported in containers,
as defined in § 4.1, must state the words
‘‘imported by’’ or a similar appropriate
phrase and, immediately thereafter, the
name and address of the importer.
(1) For purposes of this section, the
importer is the holder of the importer’s
basic permit that either makes the
original Customs entry or is the person
for which such entry is made, or the
holder of the importer’s basic permit
that is the agent, distributor, or
franchise holder for the particular brand
of imported alcohol beverages and that
places the order abroad.
(2) The address of the importer must
be stated as the city and State of the
principal place of business and must be
consistent with the address reflected on
the importer’s basic permit. Addresses
may, but are not required to, include
additional information such as street
names, counties, zip codes, phone
numbers, and website addresses. The
postal abbreviation of the State name
may be used; for example, California
may be abbreviated as CA.
(c) Wine bottled in a foreign country
other than the country of origin. If the
wine was blended, bottled or packed in
a foreign country other than the country
of origin, and the label identifies the
country of origin, the label must state
‘‘blended by,’’ ‘‘bottled by,’’ or other
appropriate statement, followed by the
name of the blender or bottler and the
place where the wine was blended,
bottled or packed.
(d) Optional statements. In addition to
the statements required by paragraph
(a)(1) of this section, the label may also
state the name and address of the
principal place of business of the
foreign producer. Other words, or their
English-language equivalents, denoting
winemaking operations may be used in
accordance with the requirements of the
country of origin, for wines sold within
the country of origin for home
consumption.
(e) Form of address. The ‘‘place’’
stated must be the city and State, shown
on the basic permit or other qualifying
document, of the premises at which the
operations took place; and the place for
each operation that is designated on the
label must be shown.
(2) The postal abbreviation of the
State name may be used; for example,
California may be abbreviated as CA.
(f) Trade or operating names. A trade
name may be used if the trade name is
listed on the basic permit or other
qualifying documentation and if its use
on the label would not create any
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misleading impression as to the age,
origin, or identity of the product.
§ 4.69
Country of origin.
(a) Pursuant to U.S. Customs and
Border Protection (CBP) regulations at
19 CFR parts 102 and 134, a country of
origin statement must appear on the
container of wine imported in
containers or bottled in the United
States after importation. Labeling
statements with regard to the country of
origin must be consistent with CBP
regulations. The determination of the
country (or countries) of origin, for
imported wines, as well as for blends of
imported wine with domestically
fermented wine, must comply with CBP
regulations.
(b) It is the responsibility of the
importer or bottler, as appropriate, to
ensure compliance with the country of
origin marking requirement, both when
wine is imported in containers and
when imported wines are subject to
bottling, blending, or production
activities in the United States. Industry
members may seek a ruling from CBP
for a determination of the country of
origin for their product.
§ 4.70
Net contents.
The requirements of this section
apply to the net contents statement
required by § 4.63.
(a) Standard containers. The net
contents for wine for which a standard
of fill is prescribed in § 4.203 must be
stated in the same manner and form as
specified in the standard of fill.
(b) Aggregately packaged containers—
(1) External containers. The net contents
of the external container for wine
packaged in an aggregate package under
the provisions of § 4.214 must be stated
in accordance with that section.
(2) Internal containers. The net
contents for the internal containers of an
aggregate package must be stated in
milliliters.
(c) Wine not subject to standards of
fill. The net contents of wine that is not
subject to standards of fill prescribed in
§ 4.203, under the rules set forth in
§ 4.201(b), must be stated as follows:
(1) If the container has a capacity of
more than one liter, the net contents
must be stated in liters and in decimal
portions of a liter accurate to the nearest
one-hundredth of a liter; and
(2) If the container has a capacity of
less than one liter, the net contents shall
be stated in milliliters.
(d) Optional statement of U.S.
equivalent net contents. Net contents in
U.S. equivalents may appear on a label
along with the required metric net
contents statement. If used, the U.S.
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equivalent volume must be shown as
follows:
(1) For the metric standards of fill:
(i) 3 liters (101 fl. oz.);
(ii) 1.5 liters (50.7 fl. oz.);
(iii) 1 liter (33.8 fl. oz.);
(iv) 750 mL (25.4 fl. oz.);
(v) 500 mL (16.9 fl. oz.);
(vi) 375 mL (12.7 fl. oz.);
(vii) 187 mL (6.3 fl. oz.);
(viii) 100 mL (3.4 fl. oz.); and
(ix) 50 mL (1.7 fl. oz.).
(2) If the container is exempt from a
standard of fill as described in
paragraph (c) of this section:
(i) Equivalent volumes of less than
100 fluid ounces must be stated in fluid
ounces, accurate to the nearest onetenth of a fluid ounce, for example: 600
mL (20.3 fl. oz.); and
(ii) Equivalent volumes of 100 fluid
ounces or more must be stated in fluid
ounces only, accurate to the nearest
whole fluid ounce, for example: 6 liters
(203 fl. oz.).
(e) Tolerances. A statement of net
contents must indicate the exact volume
of wine in the container, except that the
following tolerances shall be allowed:
(1) Discrepancies due exclusively to
errors in measuring that occur in filling
conducted in compliance with good
commercial practice;
(2) Discrepancies due exclusively to
differences in the capacity of containers,
resulting solely from unavoidable
difficulties in manufacturing the
containers so as to be of uniform
capacity, provided that the discrepancy
does not result from a bottle design that
prevents the manufacture of bottles of
an approximately uniform capacity; and
(3) Discrepancies in measure due to
differences in atmospheric conditions in
various places, including discrepancies
resulting from the ordinary and
customary exposure of alcohol
beverages in containers to evaporation,
provided that the discrepancy is
determined to be reasonable on a caseby-case basis.
Subpart F—Restricted Labeling
Statements
§ 4.81
General.
(a) Application. The labeling
practices, statements, and
representations in this subpart may be
used on wine labels only when used in
compliance with this subpart. In
addition, if any of the practices,
statements, or representations in this
subpart are used elsewhere on
containers or in packaging, they must
comply with the requirements of this
subpart. For purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on wine containers on which
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mandatory information may appear, as
set forth in § 4.61(a), as well as any
other label on the container.
(2) The term ‘‘container’’ includes all
parts of the wine container, including
any part of a wine container on which
mandatory information may appear, as
well as those parts of the container on
which information does not satisfy
mandatory labeling requirements, as set
forth in § 4.61(b).
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of this subpart, the term
‘‘statement or representation’’ includes
any statement, design, device, or
representation, and includes pictorial or
graphic designs or representations as
well as written ones. The term
‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
Food Allergen Labeling
§ 4.82 Voluntary disclosure of major food
allergens.
(a) Definitions. For purposes of this
section, the following terms or phrases
have the meanings indicated.
(1) Major food allergen means any of
the following:
(i) Milk, egg, fish (for example, bass,
flounder, or cod), Crustacean shellfish
(for example, crab, lobster, or shrimp),
tree nuts (for example, almonds, pecans,
or walnuts), wheat, peanuts, and
soybeans; or
(ii) A food ingredient that contains
protein derived from a food specified in
paragraph (a)(1)(i) of this section,
except:
(A) Any highly refined oil derived
from a food specified in paragraph
(a)(1)(i) of this section and any
ingredient derived from such highly
refined oil; or
(B) A food ingredient that is exempt
from major food allergen labeling
requirements pursuant to a petition for
exemption approved by the Food and
Drug Administration (FDA) under 21
U.S.C. 343(w)(6) or pursuant to a notice
submitted to the FDA under 21 U.S.C.
343(w)(7), provided that the food
ingredient meets the terms or
conditions, if any, specified for that
exemption.
(2) Name of the food source from
which each major food allergen is
derived. ‘‘Name of the food source from
which each major food allergen is
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derived’’ means the name of the food as
listed in paragraph (a)(1)(i) of this
section, except that:
(i) In the case of a tree nut, it means
the name of the specific type of nut (for
example, almonds, pecans, or walnuts);
(ii) In the case of Crustacean shellfish,
it means the name of the species of
Crustacean shellfish (for example, crab,
lobster, or shrimp); and
(iii) The names ‘‘egg’’ and ‘‘peanuts,’’
as well as the names of the different
types of tree nuts, may be expressed in
either the singular or plural form, and
the names ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’
may be used instead of ‘‘soybeans.’’
(b) Voluntary labeling standards.
Major food allergens used in the
production of a wine product may, on
a voluntary basis, be declared on a label
or container. However, if any one major
food allergen is voluntarily declared, all
major food allergens used in production
of the wine product, including major
food allergens used as fining or
processing agents, must be declared,
except when covered by a petition for
exemption approved by the appropriate
TTB officer under § 4.83. The major
food allergens declaration must consist
of the word ‘‘Contains’’ followed by a
colon and the name of the food source
from which each major food allergen is
derived (for example, ‘‘Contains: egg’’).
(c) Cross reference. For mandatory
labeling requirements applicable to
wine products containing FD&C Yellow
No. 5, sulfites, aspartame, and cochineal
extract or carmine, see § 4.63(b).
§ 4.83 Petitions for exemption from major
food allergen labeling.
(a) Submission of petition. Any
person may petition the appropriate
TTB officer to exempt a particular
product or class of products from the
labeling requirements of § 4.82. The
burden is on the petitioner to provide
scientific evidence (as well as the
analytical method used to produce the
evidence) that demonstrates that the
finished product or class of products, as
derived by the method specified in the
petition, either:
(1) Does not cause an allergic
response that poses a risk to human
health; or
(2) Does not contain allergenic protein
derived from one of the foods identified
in § 4.82(a)(1)(i), even though a major
food allergen was used in production.
(b) Decision on petition. TTB will
approve or deny a petition for
exemption submitted under paragraph
(a) of this section in writing within 180
days of receipt of the petition. If TTB
does not provide a written response to
the petitioner within that 180-day
period, the petition will be deemed
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denied, unless an extension of time for
decision is mutually agreed upon by the
appropriate TTB officer and the
petitioner. TTB may confer with the
Food and Drug Administration (FDA) on
petitions for exemption, as appropriate
and as FDA resources permit. TTB may
require the submission of product
samples and other additional
information in support of a petition;
however, unless required by TTB, the
submission of samples or additional
information by the petitioner after
submission of the petition will be
treated as the withdrawal of the initial
petition and the submission of a new
petition. An approval or denial under
this section will constitute final agency
action.
(c) Resubmission of a petition. After a
petition for exemption is denied under
this section, the petitioner may resubmit
the petition along with supporting
materials for reconsideration at any
time. TTB will treat this submission as
a new petition.
(d) Availability of information—(1)
General. TTB will promptly post to its
website, https://www.ttb.gov, all
petitions received under this section, as
well as TTB’s responses to those
petitions. Any information submitted in
support of the petition that is not posted
to the TTB website will be available to
the public pursuant to the Freedom of
Information Act (5 U.S.C. 552), except
where a request for confidential
treatment is granted under paragraph
(d)(2) of this section.
(2) Requests for confidential treatment
of business information. A person who
provides trade secrets or other
commercial or financial information in
connection with a petition for
exemption under this section may
request that TTB give confidential
treatment to that information. A failure
to request confidential treatment at the
time the information in question is
submitted to TTB will constitute a
waiver of confidential treatment. A
request for confidential treatment of
information under this section must
conform to the following standards:
(i) The request must be in writing;
(ii) The request must clearly identify
the information to be kept confidential;
(iii) The request must relate to
information that constitutes trade
secrets or other confidential commercial
or financial information regarding the
business transactions of an interested
person, the disclosure of which would
cause substantial harm to the
competitive position of that person;
(iv) The request must set forth the
reasons why the information should not
be disclosed, including the reasons the
disclosure of the information would
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prejudice the competitive position of
the interested person; and
(v) The request must be supported by
a signed statement by the interested
person, or by an authorized officer or
employee of that person, certifying that
the information in question is a trade
secret or other confidential commercial
or financial information and that the
information is not already in the public
domain.
Production Claims
§ 4.84
Use of the term ‘‘organic.’’
Use of the term ‘‘organic’’ is permitted
if any such use complies with United
States Department of Agriculture
(USDA) National Organic Program rules
(7 CFR part 205), as interpreted by the
USDA.
§ 4.85 Environmental, sustainability, and
similar statements.
Statements related to environmental
or sustainable agricultural practices,
social justice principles, and other
similar statements (such as, ‘‘Produced
using 100% solar energy’’ or ‘‘Carbon
Neutral’’) may appear as long as the
statements are truthful, specific, and not
misleading. Statements or logos
indicating environmental, sustainable
agricultural, or social justice
certification (such as, ‘‘Biodyvin,’’
‘‘Salmon-Safe,’’ or ‘‘Fair Trade
Certified’’) may appear on wines that are
actually certified by the appropriate
organization.
§ 4.86 Use of TTB permit numbers on
labels.
Wine labels, containers, and
packaging may bear TTB issued permit
numbers as long as those permit
numbers are located immediately
adjacent to the name and address of the
person operating the bonded wine cellar
or winery. No additional reference may
be made that may convey the
impression that the wine was made or
matured under government supervision
or in accordance with government
standards.
§ 4.87 Use of vineyard, orchard, farm, or
ranch name as a claim or as additional
information.
(a) General. Except as provided in
paragraph (b) of this section, the name
of a vineyard, orchard, farm, or ranch
may not appear on a wine label,
container, or packaging unless 95
percent of the wine in the container is
produced from primary winemaking
material grown on the named vineyard,
orchard, farm, or ranch.
(b) Exception. (1) A vineyard, orchard,
farm, or ranch name may be used
without complying with the
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requirements of paragraph (a) of this
section if the vineyard, orchard, farm, or
ranch name is part of an operating name
or trade name that appears in the
mandatory name and address statement.
In such a case, the vineyard, orchard,
farm, or ranch name that appears in the
name and address statement may also
appear in the brand name, as long as use
of the name does not make a claim as
to the origin of the winemaking
materials.
(2) Vineyard, orchard, farm, or ranch
name having geographic significance.
When used in a brand name, a vineyard,
orchard, farm, or ranch name having
geographical or viticultural significance
is subject to the requirements of
§ 4.64(b) and (c).
Appellations of Origin for Grape Wine
§ 4.88 Appellations of origin for grape
wine in general.
(a) General. An appellation of origin
for grape wine is the name of a place
where grapes used to produce a
specified minimum percentage of wine
for still grape wine, sparkling grape
wine, and carbonated grape wine were
grown. The requirements in this section
and §§ 4.89 through 4.91 apply to the
use of appellations of origin. All parts
of the appellation must be in the same
type size and immediately adjacent to
each other.
(b) Definition of ‘‘appellation of
origin’’ for American wine. An
American appellation of origin is the
name (or names) of:
(1) (The) United States or America
(American);
(2) A State;
(3) Two or three States;
(4) A county (which must be
identified with the word ‘‘county’’ or
other appropriate term for a county
equivalent, where applicable, printed in
the same font and type size as the name
of the county);
(5) Two or three counties in the same
State; or
(6) A viticultural area (as defined in
§ 4.91).
(c) Definition of appellation of origin
for imported wine. An appellation of
origin for imported wine is the name (or
names) of:
(1) A country;
(2) A state, province, territory, or
similar political subdivision of a
country equivalent to a state or county;
(3) Two or three states, provinces,
territories, or similar political
subdivisions of a country equivalent to
a state;
(4) Two or three counties; or
(5) A viticultural area (as defined in
§ 4.91).
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(d) When an appellation of origin
must be used. An appellation of origin
in accordance with §§ 4.88 through 4.91,
disclosing the true place of origin of the
wine, must appear if:
(1) A varietal (grape type) designation
is used as provided in § 4.156;
(2) A type designation of varietal
significance is used as provided in
§ 4.157;
(3) A semi-generic type designation is
used as the class and type designation
of the wine, as provided in § 4.174;
(6) The wine is labeled with a vintage
date, and otherwise conforms with the
provisions of § 4.95.
§ 4.89 Eligibility for the use of an
appellation of origin for grape wine.
(a) Appellations of origin for
American wine. An American wine is
entitled to use the name of a single
county, State, or country (the United
States or America[n]) as an appellation
of origin if:
(1) At least 75 percent of the volume
of wine is derived from grapes grown in
the named county, State or country;
(2) The wine has been fully finished
(as defined in § 4.1):
(i) In the United States, if labeled
‘‘[the] United States’’ or ‘‘America[n]’’;
(ii) Within the labeled State or an
adjacent State if labeled with a State
appellation; or
(iii) Within the State in which the
labeled county is located, if labeled with
a county appellation; and
(3) The wine conforms to the laws and
regulations of the named appellation
area that govern the composition,
method of production, and designation
of wines made in such area.
(b) Appellations of origin for imported
wine. An imported wine is entitled to
use the name of a single country or a
single State, province, territory, or
similar political subdivision of a
country equivalent to a state or county
as an appellation of origin if:
(1) At least 75 percent of the volume
of the wine is derived from grapes
grown in the area indicated by the
appellation of origin; and
(2) The wine conforms to the
requirements of the foreign laws and
regulations that govern the composition,
method of production, and designation
of wines available for consumption
within the country of origin.
§ 4.90 Multicounty and multistate
appellations of origin for grape wine.
(a) Multicounty appellations of origin
for American wine. An appellation of
origin comprising the names of two or
three counties in the same State may be
used if:
(1) At least 85 percent of the volume
of the wine is derived from grapes
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grown in the counties included in the
appellation;
(2) The wine derived from grapes
grown in each county included in the
appellation is in greater proportion than
wine derived from grapes grown in any
county that is not listed; and
(3) The counties must be listed in
descending order of predominance,
based on the percentage of wine derived
from grapes grown in each county.
(b) Multicounty appellations of origin
for imported wine. An appellation of
origin comprising the names of two or
three states, provinces, territories, or
similar political subdivisions of a
country equivalent to a county, all of
which are in the same country, may be
used if:
(1) At least 85 percent of the volume
of the wine is derived from grapes
grown in the counties included in the
appellation;
(2) The wine derived from grapes
grown in each county included in the
appellation is in greater proportion than
wine derived from grapes grown in any
county that is not listed;
(3) The counties must be listed in
descending order of predominance,
based on the percentage of wine derived
from grapes grown in each county; and
(4) The wine conforms to the
requirements of the foreign laws and
regulations that govern the composition,
method of production, and designation
of wines available for consumption
within the country of origin.
(c) Multistate appellations of origin
for American wine. An appellation of
origin comprising the names of two or
three States may be used if:
(1) At least 85 percent of the volume
of the wine is derived from grapes
grown in the States included in the
appellation;
(2) The wine derived from grapes
grown in each State included in the
appellation is in greater proportion than
wine derived from grapes grown in any
State that is not listed;
(3) The States are listed in a
descending order of predominance,
based on the percentage of wine derived
from grapes grown in each State;
(4) The wine has been fully finished
(as defined in § 4.1) in one of the labeled
States; and
(5) The wine conforms to the laws and
regulations that govern the composition,
method of manufacture, and designation
of wines in all of the States listed in the
appellation.
(d) Multistate appellations of origin
for imported wine. An appellation of
origin comprising the names of two or
three states, provinces, territories, or
similar political subdivisions of a
country equivalent to a state, all of
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which are in the same country, may be
used if:
(1) At least 85 percent of the volume
of the wine is derived from grapes
grown in the states, provinces,
territories, or similar political
subdivisions of a country equivalent to
a state that are included in the
appellation;
(2) The wine derived from grapes
grown in each state, province, territory,
or similar political subdivision included
in the appellation is in greater
proportion than wine derived from
grapes grown in any such area not listed
on the label;
(3) The states, provinces, territories,
or similar political subdivisions are
listed in a descending order of
predominance, based on the percentage
of wine derived from grapes grown in
each; and
(4) The wine conforms to the
requirements of the foreign laws and
regulations that govern the composition,
method of production, and designation
of wines available for consumption
within the country of origin.
§ 4.91
Viticultural areas.
(a) Definition of viticultural area for
American wine. An American
viticultural area is a delimited grapegrowing region having a name,
distinguishing features, and a delineated
boundary as established in part 9 of this
chapter.
(b) Definition of viticultural area for
imported wine. A viticultural area for
imported wine is a delimited place or
region (other than a place or region
(such as a county or state) defined in
§ 4.88(c)(1), (2), or (3)) the boundaries of
which have been recognized and
defined by the country of origin for use
on labels of wine available for
consumption within the country of
origin.
(c) Establishment of American
viticultural areas. A petition for the
establishment of an American
viticultural area may be submitted by
any interested party, pursuant to part 9
and § 70.701(c) of this chapter. The
petition must be made in written form
and must contain the information
specified in § 9.12 of this chapter.
(d) Requirements for use. A wine may
be labeled with the name of a
viticultural area if:
(1) The appellation has been approved
under part 9 of this chapter in the case
of domestic wine or by the appropriate
foreign government in the case of
imported wine;
(2) Not less than 85 percent of the
wine is derived from grapes grown
within the boundaries of the viticultural
area;
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(3) In the case of foreign wine, it
conforms to the requirements of the
foreign laws and regulations that govern
the composition, method of production,
and designation of wines available for
consumption within the country of
origin; and
(4) In the case of American wine, it
has been fully finished (as defined in
§ 4.1) within the State, or one of the
States, within which the labeled
viticultural area is located.
(e) More than one viticultural area. A
wine may be labeled with more than
one viticultural area if:
(1) The indicated viticultural areas
overlap; and
(2) Not less than 85 percent of the
volume of the wine is derived from
grapes grown in the overlapping area.
Claims About Grape Wine
§ 4.92
Estate bottled.
(a) Conditions for use. The term
‘‘Estate bottled’’ may appear on a wine
label only if the wine is labeled with a
viticultural area appellation of origin
and the bottling winery:
(1) Is located within the labeled
viticultural area;
(2) Grew all of the grapes used to
make the wine on land owned or
controlled by the winery within the
boundaries of the labeled viticultural
area; and
(3) Crushed the grapes, fermented the
resulting must, and fully finished, aged,
and bottled the wine in a continuous
process (the wine at no time having left
the premises of the bottling winery).
(b) Special rule for cooperatives.
Grapes grown by the members of a
single cooperative bottling winery are
considered to be grown by the bottling
winery.
(c) Use of other terms. No term other
than ‘‘Estate bottled’’ may appear on a
label to indicate combined growing and
bottling conditions.
(d) Definitions. For purposes of this
section, land controlled by the winery
refers to property on which the
producing winery has the legal right to
perform, and does perform, all of the
acts common to viticulture under the
terms of a lease or similar agreement of
at least three years duration.
§ 4.93
Estate grown.
(a) Conditions for use. The term
‘‘Estate(s) grown’’ may appear on a wine
label only if all of the following
conditions are met:
(1) The wine is labeled with an
appellation of origin;
(2) The producing winery is located
within the appellation of origin;
(3) The producing winery grew all of
the grapes used to make the wine on
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land owned or controlled by the
producing winery within the boundaries
of the appellation of origin, and
fermented 100 percent of the wine from
those grapes; and
(4) If the bottling winery is not the
producing winery, the label must clarify
that the wine was ‘‘estate grown’’ by the
producing winery, and the name and
address of both wineries must appear on
the label. An acceptable labeling
statement would be ‘‘Estate grown and
produced by ABC Winery, Seattle,
Washington. Bottled by XYZ Winery,
Tacoma, Washington.’’
(b) Special rule for cooperatives.
Grapes grown by the members of a
single cooperative bottling winery are
considered to be grown by the bottling
winery.
(c) Definition. For purposes of this
section, land controlled by the winery
refers to property on which the
producing winery has the legal right to
perform, and does perform, all of the
acts common to viticulture under the
terms of a lease or similar agreement of
at least 3 years duration.
§ 4.94 Claims on grape wine labels for
viticultural practices that result in sweet
wine.
(a) General. The claims set forth in
paragraphs (b) through (d) of this
section about viticultural practices that
result in sweet wine may be used on
labels of grape wine subject to the rules
set forth in this section. In all such
cases, the wine must also be labeled
with the amount of sugar contained in
the grapes at the time of harvest and the
amount of residual sugar in the finished
wine. The amount of sugar may be
stated in degrees Brix, percent by
weight, grams per 100 mL or grams per
liter. Harvest or picking dates may not
be stated on the label unless the wine
is labeled with a vintage date in
accordance with § 4.95.
(b) Ice wine. The term ‘‘ice wine’’ (or
‘‘icewine,’’ or ‘‘ice-wine’’) may be used
only to describe wines produced
exclusively from grapes that have been
harvested after they have naturally
frozen on the vine. Wine that is
ameliorated, concentrated, fortified, or
produced from concentrate may not be
labeled as ‘‘ice wine.’’ Wine produced
from grapes that were frozen postharvest may not be labeled as ‘‘ice
wine’’ but may be labeled with a
statement such as ‘‘made from grapes
frozen post-harvest.’’
(c) Late harvest or late picked. The
term ‘‘late harvest’’ or ‘‘late picked’’ may
not be used on the label of a wine that
is ameliorated, concentrated, fortified,
or produced from concentrate.
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(d) Botrytis Infected or Pourriture
Noble. Grape wine produced from
grapes that have been infected with the
botrytis cinerea mold may be labeled
with a term such as ‘‘Botrytis Infected,’’
‘‘Pourriture Noble,’’ or another name for
infection by the botrytis cinerea mold.
§ 4.95
Vintage date.
(a) General. Grape wine may be
labeled with the vintage date (which is
the calendar year in which the grapes
used to make the wine were harvested)
only if the wine is also labeled with an
appellation of origin as defined in
§ 4.88. The requirements in paragraphs
(a)(1) through (3) of this section apply
to the use of vintage dates on American
and imported wines:
(1) If wine is labeled with a
viticultural area as defined in § 4.91, at
least 95 percent of the wine must have
been derived from grapes harvested in
the labeled calendar year.
(2) If a wine is labeled with an
appellation of origin other than a
viticultural area, at least 85 percent of
the wine must have been derived from
grapes harvested in the labeled calendar
year.
(3) A wine may be labeled with only
one vintage date.
(b) Imported wine. Imported wine
may bear a vintage date if all of the
following conditions are met:
(1) The wine is made in compliance
with the production standards
referenced in paragraph (a) of this
section, except that the year of harvest
for an imported wine will be
determined in accordance with the laws
and regulations governing vintage date
labeling of wines available for
consumption within the country of
origin.
(2) The wine is of the vintage shown,
the laws of the country of origin regulate
the appearance of vintage dates upon
the labels of wine produced for
consumption within the country of
origin, the wine has been produced in
conformity with those laws, and the
wine would be entitled to bear the
vintage date if it had been sold within
the country of origin. The importer of
the wine imported in bottles or the
domestic bottler of wine imported in
bulk and bottled in the United States
must be able to demonstrate, upon
request by the appropriate TTB officer
or a customs officer, that the wine is
entitled to be labeled with the vintage
date.
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Appellations of Origin for Fruit Wine,
Agricultural Wine, and Rice Wine
§ 4.96 Appellations of origin for fruit wine,
agricultural wine, and rice wine in general.
(a) General. An appellation of origin
for fruit wine, agricultural wine, or rice
wine is the name of a place where the
fruit (other than grapes), agricultural
products, or rice, respectively, used to
produce a specified minimum
percentage of the fruit wine, agricultural
wine, or rice wine, as prescribed in
subpart I of this part, are grown. In the
case of honey wine, eligibility for use of
an appellation of origin is based on the
place where the source plants for the
honey were grown. The requirements in
this section and §§ 4.97 and 4.98, apply
to the use of appellations of origin. All
parts of the appellation must be in the
same type size and immediately
adjacent to each other.
(b) Definition of ‘‘appellation of
origin’’ for American wine. An
American appellation of origin is the
name (or names) of:
(1) (The) United States or America
(American);
(2) A State (including the District of
Columbia and the Commonwealth of
Puerto Rico);
(3) Two or no more than three States;
(4) A county (which must be
identified with the word ‘‘county’’ or
other appropriate term for a county
equivalent, where applicable, printed in
the same font and type size as the name
of the county); or
(5) Two or no more than three
counties in the same State.
(c) Definition of appellation of origin
for imported wine. An appellation of
origin for imported wine is the name (or
names) of:
(1) A country;
(2) A state, province, territory, or
similar political subdivision of a
country equivalent to a state or county;
or
(3) Two or three states, provinces,
territories, or similar political
subdivisions of a country equivalent to
a state.
§ 4.97 Eligibility for use of an appellation
of origin for fruit wine, agricultural wine,
and rice wine.
(a) Appellations of origin for
American wine. An American fruit,
agricultural, or rice wine is entitled to
use the name of a single county, State,
or country (the United States or
America[n]) as an appellation of origin
if:
(1) At least 75 percent of the volume
of wine is derived from fruit or
agricultural products grown in the
stated appellation of origin;
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(2) The wine has been fully finished
(as defined in § 4.1):
(i) In the United States, if labeled
‘‘[the] United States’’ or ‘‘America[n]’’;
(ii) Within the labeled State or an
adjacent State if labeled with a State
appellation; or
(iii) Within the State in which the
labeled county is located, if labeled with
a county appellation; and
(3) The wine conforms to the laws and
regulations of the named appellation
area that govern the composition,
method of production, and designation
of wines made in such place.
(b) Appellations of origin for imported
wine. An imported wine is entitled to
use the name of a single country or a
single State, province, territory, or
similar political subdivision of a
country equivalent to a state or county
as an appellation of origin if:
(1) At least 75 percent of the volume
of the wine is derived from fruit or other
agricultural products grown in the area
indicated by the appellation of origin;
and
(2) The wine conforms to the
requirements of the foreign laws and
regulations that govern the composition,
method of production, and designation
of wines available for consumption
within the country of origin.
§ 4.98 Multicounty and multistate
appellations of origin for fruit wine,
agricultural wine, and rice wine.
(a) Multicounty appellations of origin.
An appellation of origin comprising the
names of two or three counties in the
same State may be used if:
(1) At least 85 percent of the volume
of the wine is derived from fruit or other
agricultural products grown in the
counties included in the appellation;
(2) The wine derived from fruit or
other agricultural products grown in
each county included in the appellation
is in greater proportion than wine
derived from fruit or other agricultural
products grown in any county that is
not listed; and
(3) The counties are listed in
descending order of predominance,
based on the percentage of wine derived
from fruit or other agricultural products
grown or harvested in each county.
(b) Multistate appellations for
American wine. An appellation of origin
comprising the names of two or three
States may be used, if:
(1) At least 85 percent of the volume
of the wine is derived from fruit or other
agricultural products grown in the
States indicated;
(2) The wine derived from fruit or
other agricultural products grown or
harvested in each State listed on the
label is in greater proportion than wine
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derived from fruit or other agricultural
products grown in any State that is not
listed;
(3) The States must be listed in a
descending order of predominance,
based on the percentage of wine derived
from fruit or other agricultural products
grown or harvested in each State;
(4) The wine has been fully finished
(as defined in § 4.1) in one of the labeled
States; and
(5) The wine conforms to the laws and
regulations that govern the composition,
method of manufacture, and designation
of wines in all of the States listed in the
appellation.
(c) Multistate appellations of origin
for imported wine. An appellation of
origin comprising the names of two or
three states, provinces, territories, or
similar political subdivisions of a
country equivalent to a state, all of
which are in the same country, may be
used if:
(1) At least 85 percent of the volume
of the wine is derived from fruit or other
agricultural products grown or
harvested in the states, provinces,
territories, or similar political
subdivisions of a country equivalent to
a state that are included in the
appellation;
(2) The wine derived from fruit or
agricultural products grown or
harvested in each named state,
province, territory, or similar political
subdivisions must be listed in a
descending order of predominance,
based on the percentage of wine derived
from fruit or other agricultural products
grown or harvested in each;
(3) The wine derived from fruit or
other agricultural products grown or
harvested in each state, province,
territory, or similar political subdivision
must be in greater proportion than wine
derived from fruit or other agricultural
products grown or harvested in any
such area not listed on the label; and
(4) The wine conforms to the
requirements of the foreign laws and
regulations that govern the composition,
method of production, and designation
of wines available for consumption
within the country of origin.
Subpart G—Prohibited Labeling
Practices
§ 4.101
General.
(a) Application. The prohibitions set
forth in this subpart apply to any wine
label, container, or packaging. For
purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on wine containers on which
mandatory information may appear, as
set forth in § 4.61(a), as well as any
other label on the container;
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(2) The term ‘‘container’’ includes all
parts of the wine container, including
any part of a wine container on which
mandatory information may appear, as
well as those parts of the container on
which information does not satisfy
mandatory labeling requirements, as set
forth in § 4.61(b); and
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of the prohibited practices in
this subpart, the term ‘‘statement or
representation’’ includes any statement,
design, device, or representation, and
includes pictorial or graphic designs or
representations as well as written ones.
The term ‘‘statement or representation’’
includes explicit and implicit
statements and representations.
§ 4.102
False or untrue statements.
Wine labels, containers, or packaging
may not contain any statement or
representation that is false or untrue in
any particular.
§ 4.103
Obscene or indecent depictions.
Wine labels, containers, or packaging
may not contain any statement or
representation that is obscene or
indecent.
Subpart H—Labeling Practices That
Are Prohibited If They Are Misleading
§ 4.121
General.
(a) Application. The labeling practices
that are prohibited if misleading set
forth in this subpart apply to any wine
label, container, or packaging. For
purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on wine containers on which
mandatory information may appear, as
set forth in § 4.61(a), as well as any
other label on the container;
(2) The term ‘‘container’’ includes all
parts of the wine container, including
any part of a wine container on which
mandatory information may appear, as
well as those parts of the container on
which information does not satisfy
mandatory labeling requirements, as set
forth in § 4.61(b); and
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
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(b) Statement or representation. For
purposes of this subpart, the term
‘‘statement or representation’’ includes
any statement, design, device, or
representation, and includes pictorial or
graphic designs or representations as
well as written ones. The term
‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
§ 4.122 Misleading statements or
representations.
(a) General prohibition. Wine labels,
containers, or packaging may not
contain any statement or representation,
irrespective of falsity, that is misleading
to consumers as to the age, origin,
identity, or other characteristics of the
wine, or with regard to any other
material factor.
(b) Ways in which statements or
representations may be misleading. (1)
A statement or representation is
prohibited, irrespective of falsity, if it
directly creates a misleading
impression, or if it does so indirectly
through ambiguity, omission, inference,
or by the addition of irrelevant,
scientific, or technical matter. For
example, an otherwise truthful
statement may be misleading because of
the omission of material information,
the disclosure of which is necessary to
prevent the statement from being
misleading.
(2) As set forth in § 4.212(b), all
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Any claim on wine labels, containers, or
packaging that does not have a
reasonable basis in fact, or cannot be
adequately substantiated upon the
request of the appropriate TTB officer,
is considered misleading.
§ 4.123
Guarantees.
Wine labels, containers, or packaging
may not contain any statement relating
to guarantees if the appropriate TTB
officer finds it is likely to mislead the
consumer. However, money-back
guarantees are not prohibited.
§ 4.124
Disparaging statements.
(a) General. Wine labels, containers,
or packaging may not contain any false
or misleading statement that explicitly
or implicitly disparages a competitor’s
product.
(b) Examples. (1) An example of an
explicit statement that falsely disparages
a competitor’s product is, ‘‘Brand X is
not aged in oak barrels,’’ when such
statement is not true.
(2) An example of an implicit
statement that disparages competitors’
products in a misleading fashion is,
‘‘We do not add arsenic to our wine,’’
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where such a claim is true but it may
lead consumers to falsely believe that
other winemakers do add arsenic to
their wine.
(c) Truthful and accurate
comparisons. This section does not
prevent truthful and accurate
comparisons between products (such as,
‘‘Our wine contains more grapes than
Brand X’’) or statements of opinion
(such as, ‘‘We think our wine tastes
better than any other wine on the
market’’).
§ 4.125
Tests or analyses.
Wine labels, containers, or packaging
may not contain any statement or
representation of or relating to analyses,
standards, or tests, whether or not it is
true, that is likely to mislead the
consumer. An example of such a
misleading statement is ‘‘tested and
approved by our research laboratories’’
if the testing and approval does not in
fact have any significance.
§ 4.126 Depictions of government
symbols.
(a) Representations of the armed
forces and flags. Wine labels,
containers, or packaging may not show
an image of any government’s flag or
any representation related to the armed
forces of the United States if the
representation, standing alone or
considered together with any additional
language or symbols on the label,
creates a false or misleading impression
that the product was endorsed by, made
by, used by, or made under the
supervision of, the government
represented by that flag or the armed
forces of the United States. This section
does not prohibit the use of a flag as part
of a claim of American origin or another
country of origin.
(b) Government seals. Wine labels,
containers, or packaging may not
contain any government seal or other
insignia that is likely create a false or
misleading impression that the product
has been endorsed by, made by, used
by, or produced for, or under the
supervision of, or in accordance with
the specification of, that government.
Seals required or specifically authorized
by applicable law or regulations and
used in accordance with such law or
regulations are not prohibited.
§ 4.127 Depictions simulating government
stamps or relating to supervision.
(a) Wine labels, containers, or
packaging may not contain any
statements or representations that
mislead consumers to believe that the
wine is manufactured or processed
under government authority. Wine
labels, containers, or packaging may not
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contain images or designs resembling a
stamp of the U.S. Government or any
State or foreign government, and may
not contain statements or indications
that the wine is produced, blended,
bottled, packed or sold under, or in
accordance with, any municipal, State,
Federal, or foreign authorization, law, or
regulations, unless such statement is
required or specifically authorized by
applicable law or regulations. If a
municipal, State, or Federal
Government permit number is stated on
a label, containers, or packaging, it may
not be accompanied by any additional
statement relating to that permit number
with the exception of the name and
address of the person associated with
that permit number.
(b) If imported wines are covered by
a certificate of origin and/or a certificate
of vintage date issued by an official duly
authorized by the appropriate foreign
government, the container, except
where prohibited by the foreign
government, may refer to that certificate
or to the fact of that certification, but the
container must not contain any
additional statements relating to the
certificate or certification. Any reference
to such a certificate or certification must
be in substantially the following form:
This product was accompanied at the
time of the importation by a certificate
issued by the
lllllllllllllllllll
(Name of government)
government indicating that the product
is
lllllllllllllllllll
(Class and type as stated on the
container)
and (if container bears a statement of
vintage date) that the wine is of the
vintage of
lllllllllllllllllll
(Year of vintage stated on the container).
§ 4.128 Claims related to distilled spirits or
malt beverages.
(a) General. Except as provided in
paragraph (b) of this section, no label,
carton, case, or any other packaging
material may contain a statement,
design, or representation that tends to
create a false or misleading impression
that the wine is a distilled spirits or
malt beverage product, or that it
contains distilled spirits or malt
beverages. For example, the use of the
name of a class or type designation of
a distilled spirits or malt beverage
product, as set forth in part 5 or 7 of this
chapter, is prohibited, if the use of that
name creates a misleading impression as
to the identity of the product.
Homophones or coined words that
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simulate or imitate a class or type
designation are also prohibited.
(b) Exceptions. This section does not
prohibit:
(1) A truthful and accurate statement
of alcohol content;
(2) The use of a brand name of a
distilled spirits or malt beverage
product as a wine brand name, provided
that the overall label does not create a
misleading impression as to the identity
of the product;
(3) The use of a distilled spirits or
malt beverage cocktail name as a brand
name or a distinctive or fanciful name
of a wine product, provided that a
statement of composition, in accordance
with § 4.151, appears in the same field
of vision as the brand name or a
distinctive or fanciful name and the
overall label does not create a
misleading impression about the
identity of the product;
(4) The use of a statement of
composition that includes a reference to
the type of distilled spirits contained
therein;
(5) The use of truthful and accurate
statements about the production of the
wine, as part of a statement of
composition or otherwise, such as ‘‘aged
in whisky barrels,’’ so long as such
statements do not create a misleading
impression as to the identity of the
product; or
(6) The use of terms that simply
compare wine to distilled spirits or malt
beverage products without creating a
misleading impression as to the identity
of the product.
§ 4.129
Health-related statements.
(a) Definitions. When used in this
section, the following terms have the
meaning indicated:
(1) Health-related statement means
any statement related to health (other
than the warning statement required
under part 16 of this chapter) and
includes statements of a curative or
therapeutic nature that, expressly or by
implication, suggest a relationship
between the consumption of alcohol,
wine, or any substance found within the
wine, and health benefits or effects on
health. The term includes both specific
health claims and general references to
alleged health benefits or effects on
health associated with the consumption
of alcohol, wine, or any substance found
within the wine, as well as healthrelated directional statements. The term
also includes statements and claims that
imply that a physical or psychological
sensation results from consuming the
wine, as well as statements and claims
of nutritional value (for example,
statements of vitamin content).
Numerical statements of the calorie,
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carbohydrate, protein, and fat content of
the product do not constitute claims of
nutritional value.
(2) Specific health claim means a type
of health-related statement that,
expressly or by implication,
characterizes the relationship of alcohol,
wine, or any substance found within the
wine, to a disease or health-related
condition. Implied specific health
claims include statements, symbols,
vignettes, or other forms of
communication that suggest, within the
context in which they are presented,
that a relationship exists between wine,
alcohol, or any substance found within
the wine, and a disease or health-related
condition.
(3) Health-related directional
statement means a type of health-related
statement that directs or refers
consumers to a third party or other
source for information regarding the
effects on health of wine or alcohol
consumption.
(b) Rules for labeling—(1) Healthrelated statements. In general, labels
may not contain any health-related
statement that is untrue in any
particular or tends to create a
misleading impression as to the effects
on health of alcohol consumption. TTB
will evaluate such statements on a caseby-case basis and may require as part of
the health-related statement a
disclaimer or some other qualifying
statement to dispel any misleading
impression conveyed by the healthrelated statement.
(2) Specific health claims. (i) TTB will
consult with the Food and Drug
Administration (FDA), as needed, on the
use of a specific health claim on the
wine. If FDA determines that the use of
such a labeling claim is a drug claim
that is not in compliance with the
requirements of the Federal Food, Drug,
and Cosmetic Act, TTB will not approve
the use of that specific health claim on
the wine.
(ii) TTB will approve the use of a
specific health claim on a wine label
only if the claim: Is truthful and
adequately substantiated by scientific or
medical evidence; is sufficiently
detailed and qualified with respect to
the categories of individuals to whom
the claim applies; adequately discloses
the health risks associated with both
moderate and heavier levels of alcohol
consumption; and outlines the
categories of individuals for whom any
levels of alcohol consumption may
cause health risks. This information
must appear as part of the specific
health claim.
(3) Health-related directional
statements. A health-related directional
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statement is presumed misleading
unless it:
(i) Directs consumers in a neutral or
other non-misleading manner to a third
party or other source for balanced
information regarding the effects on
health of alcohol or alcohol beverage
product consumption; and
(ii)(A) Includes as part of the healthrelated directional statement the
following disclaimer: ‘‘This statement
should not encourage you to drink or to
increase your alcohol consumption for
health reasons’’; or
(B) Includes as part of the healthrelated directional statement some other
qualifying statement that the
appropriate TTB officer finds is
sufficient to dispel any misleading
impression conveyed by the healthrelated directional statement.
§ 4.130
Appearance of endorsement.
(a) General. Wine labels, containers,
or packaging may not include the name,
or the simulation or abbreviation of the
name, of any living individual of public
prominence, or an existing private or
public organization, or any graphic,
pictorial, or emblematic representation
of the individual or organization, if its
use is likely to lead a consumer to
falsely believe that the product has been
endorsed, made, or used by, or
produced for, or under the supervision
of, or in accordance with the
specifications of, such individual or
organization. This section does not
prohibit the use of such names where
the individual or organization has
provided authorization for their use.
(b) Documentation. The appropriate
TTB officer may request documentation
from the bottler or importer to establish
that the person or organization has
provided authorization to use the name
of that person or organization.
(c) Disclaimers. Statements or other
representations do not violate this
section if, taken as a whole, they create
no misleading impression as to an
implied endorsement either because of
the context in which they are presented
or because of the use of an adequate
disclaimer.
§ 4.131 Use of the word ‘‘importer’’ or
similar words.
(a) Except as provided in paragraph
(b) of this section, labels, containers, or
packaging for wine that is not required
to bear an ‘‘imported by’’ statement
under § 4.67 or § 4.68 may not include
the word ‘‘importer’’ or any other word
that creates the misleading impression
that the product was imported.
(b) If the word ‘‘importer’’ or a similar
word is part of the bona fide name of a
permittee by or for whom the wine was
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bottled, or a retailer for whom the wine
was bottled or distributed, it may appear
as part of the name and address
statement, as long as the words
‘‘Product of the United States’’ or
similar dispelling language appears
immediately adjacent to the name and
address statement, in the same size and
type of the name and address statement.
§ 4.132
[Reserved]
§ 4.133 Claims regarding terms defined or
authorized by this part.
(a) Wine labels, containers, or
packaging may not include any use of a
term defined in this part in a manner
that is not consistent with the
definitions set forth in this part.
(b) Wine labels, containers, or
packaging materials may not contain
any coined word or name that
simulates, imitates, or which tends to
create the impression that the wine so
labeled is entitled to bear, any class,
type, or authorized designation
recognized by the regulations in this
part or in part 5 or part 7 of this chapter
unless the wine conforms to the
requirements prescribed with respect to
such designation and is in fact so
designated on its labels.
(c) Except as provided by § 4.136,
statements or representations on wine
labels, containers, or packaging may not
make claims about the grape varieties
used in production of a wine that does
not bear a varietal designation under
§ 4.156 or § 4.157.
(d) Except as provided by § 4.134,
statements or representations on wine
labels, containers, or packaging may not
make claims about the year that grapes
were grown or harvested unless the
wine label bears a vintage date in
accordance with § 4.95, and the claims
are consistent with that date.
§ 4.134
ages.
Statements related to dates or
(a) Statement of age. Except as
provided in paragraphs (b) and (c) of
this section, a wine label, container, or
packaging may not bear any statement
or other representation of age, including
representations in the brand name,
except for:
(1) Vintage wine, in accordance with
§ 4.95;
(2) References relating to methods of
wine production involving storage or
aging, in accordance with § 4.56. Any
such age statement must indicate how
long the wine has been aged and the
type of aging that occurred, for example,
‘‘Barrel aged for ll months;’’ or
(3) Use of the word ‘‘old’’ as part of
the brand name; or
(4) Additional truthful, accurate, and
specific information about the year of
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harvest of the grapes or fruit used to
make still, sparkling, or carbonated
grape wine, or still, sparkling, or
carbonated fruit wine, respectively. The
information must indicate the
percentage of wine derived from grapes
or fruit, respectively, grown in each of
the labeled harvest years, such as ‘‘60%
of the grapes used to make this wine
were harvested in 2014; the remaining
40% were harvested in 2013,’’ or ‘‘this
wine is a blend of 50% wine made from
apples harvested in 2012 and 50% wine
made from apples harvested in 2011.’’
When applicable, the years of harvest
must be presented in descending order
based on the percentage of wine derived
from grapes or fruit grown in each year.
(b) Statement of bottling date. For
purposes of paragraph (a) of this section,
a statement of the bottling date of a wine
will not be deemed to be a
representation relative to age, provided
that the statement appears in the
following form: ‘‘Bottled in ll’’
(inserting the year in which the wine
was bottled).
(c) Miscellaneous date statements.
Except in the case of vintage dates and
bottling, storage, or aging dates as
provided in paragraphs (a) and (b) of
this section, a wine label must not bear
any date unless, in addition to the date
and immediately adjacent to the date
and in the same size and kind of
printing, a statement of the significance
or relevance of the date is provided,
such as ‘‘established’’ or ‘‘founded in’’.
If the date refers to the date of
establishment of any business or brand
name, the date and its accompanying
statement must appear immediately
adjacent to the name of the person,
company, or brand name to which it
relates if the appropriate TTB officer
finds that this is necessary in order to
prevent confusion as to the person,
company, or brand name to which the
establishment date applies. This
paragraph does not authorize the use of
dates referring to the date of growth or
harvest of the grapes on wines that are
not labeled with vintage dates in
accordance with § 4.95.
§ 4.135
Indications of origin.
(a) General rule. Except as otherwise
provided in §§ 4.64 and 4.174, which
address brand names of geographic
significance and semi-generic
designations, respectively, any
statement, design, device or
representation on a wine label,
container, or packaging that indicates or
implies an origin other than the true
place of origin of the wine is prohibited.
This section does not prohibit name and
address statements in accordance with
this part.
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(b) Wine that is labeled with an
appellation of origin. Except as
otherwise provided in §§ 4.64 and
4.174, which address brand names of
geographic significance and semigeneric designations, respectively, any
statement or representation regarding
the origin of the grapes, fruit, or
agricultural materials used to make
wine that is labeled with an appellation
of origin must be consistent with the
appellation of origin that appears on the
label.
(c) Wine that is not labeled with an
appellation of origin. Wine that is not
labeled with an appellation of origin
may be labeled with additional
information that provides truthful
information about the origin of the
grapes, fruit, or other agricultural
materials that were used to produce the
wine provided that:
(1) The name of the place of origin of
the grapes, fruit, or other agricultural
products does not appear on the label in
a way that creates the misleading
impression that the wine is entitled to
an appellation of origin under §§ 4.88–
4.90 or §§ 4.96–4.97; and
(2) Any additional information about
the origin of the grapes, fruit, or other
agricultural products of the wine sets
forth the origin of 100 percent of the
grapes, fruit, or other agricultural
products used to make the wine, in
descending order of predominance,
together with the place where the wine
was produced.
(d) Examples of permissible
statements of origin as additional
information. A wine that is produced in
New York and designated as ‘‘red
wine,’’ may be labeled with a statement
that indicates the origin and percentage
of the gapes that were used to produce
the wine. If 50 percent of the grapes
used to make the wine were grown in
New York, and 50 percent of the grapes
used to make the wine were grown in
Virginia, the wine may bear a statement
on the label to the effect of ‘‘this wine
was produced and bottled in New York
from 50 percent New York grapes and
50 percent Virginia grapes.’’
§ 4.136 Use of a varietal name, type
designation of varietal significance, semigeneric name, or geographic distinctive
designation.
(a) The use of a varietal name, type
designation of varietal significance,
semi-generic name, or geographic
distinctive designation is presumed to
be misleading and is thus prohibited on
the label, container, or packaging of any
wine that is not made in accordance
with the standards prescribed for still
grape wine, sparkling grape wine, or
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carbonated grape wine of §§ 4.142,
4.143, and 4.144.
(b) The use of such a term on the label
of a wine, container, or packaging of any
wine that is made in accordance with
the standards prescribed for still grape
wine, sparkling grape wine, or
carbonated grape wine but does not
meet the requirements for use of the
designation named, including its use in
a brand name, product name, or a
distinctive or fanciful name, is
prohibited where the use of such name
may tend to create a false or misleading
impression as to the designation, origin,
or identity of the wine.
(c) This paragraph does not prohibit
the use of truthful, accurate, and
specific additional information on the
label about the grape varieties used to
make a still grape wine, sparkling grape
wine, or carbonated grape wine,
provided that the information includes
every grape variety used to make the
wine, listed in descending order of
predominance. The percentage of each
grape variety may be, but is not required
to be, shown on the label, along with a
tolerance of two percentage points.
When shown, percentages must be
shown for all grape varieties listed, and
the total must equal 100 percent.
§ 4.137 Terms relating to intoxicating
qualities.
Wine labels, containers, or packaging
may not contain any statement or
representation that tends to create the
impression that the wine should be
purchased or consumed based on
intoxicating qualities.
Subpart I—The Standards of Identity
for Wine
§ 4.141 The standards of identity in
general.
(a) Standards of identity (class and
type designations) and other
designations (statements of
composition). Sections 4.142 through
4.150 provide for the standards of
identity for wine. These standards are
broken into nine classes and several
types within each class. In general, the
class and/or type designation is used to
meet the mandatory requirement found
in § 4.63(a)(2). In certain circumstances,
a statement of composition as
prescribed in § 4.151 may be required.
In those circumstances, the statement of
composition meets the mandatory label
information requirement in § 4.63(a)(2).
All parts of the designation of wine,
whether mandatory or optional, must
appear together and in lettering
substantially of the same size and kind.
Whenever any term for which a
standard of identity has been
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established in this subpart is used in
this part, the term has the meaning
assigned to it by that standard of
identity.
(b) Cellar treatment of wine. See
§ 4.154 for cellar treatments that change
the class and type designation of wine
and for those cellar treatments that are
authorized for use without changing the
class and type of wine.
§ 4.142 Still grape wine—class and type
designation.
(a) Still grape wine. (1) Still grape
wine is wine produced by the normal
alcoholic fermentation of the juice of
sound, ripe grapes (including restored
or unrestored pure condensed grape
must), with or without the addition,
after fermentation, of pure condensed
grape must and with or without added
spirits of the type authorized for natural
wine under 26 U.S.C. 5382, but without
other addition or abstraction except as
may occur in cellar treatment of the type
authorized for natural wine under 26
U.S.C. 5382.
(2) Still grape wine may be
ameliorated, or sweetened, before,
during, or after fermentation, in a way
that is consistent with the limits set
forth in 26 U.S.C. 5383 for natural grape
wine, provided that grape wine
designated as ‘‘specially sweetened
grape wine’’ under paragraph (c)(11) of
this section may be sweetened in
accordance with the standards set forth
in 26 U.S.C. 5385.
(3) Still grape wine must contain less
than 0.392 grams of carbon dioxide per
100 milliliters. The maximum volatile
acidity, calculated as acetic acid and
exclusive of sulfur dioxide is 0.14 gram
per 100 mL (20 degrees Celsius) for red
wine and 0.12 gram per 100 mL (20
degrees Celsius) for other grape wine,
provided that the maximum volatile
acidity for wine produced from
unameliorated juice of 28 or more
degrees Brix is 0.17 gram per 100 mL for
red wine and 0.15 gram per 100 mL for
white wine.
(b) Class designation of grape wine.
Still grape wine must be designated as
‘‘still grape wine’’ or ‘‘grape wine’’
unless paragraph (c) of this section
applies. Still grape wine that is
designated with an authorized type
designation may use the class
designation ‘‘grape wine’’ in addition to
the type designation.
(c) Type designation of still grape
wine. Still grape wine may be
designated with one or more of the
following type designation(s) that apply
in place of or in addition to the class
designation.
(1) Red, white, blush, pink, rose´, and
amber wine. Still grape wine that
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derives its characteristic color from the
presence or absence of the red coloring
matter of the skins, juice, or pulp of
grapes may be designated as ‘‘red wine,’’
‘‘white wine,’’ ‘‘blush wine,’’ ‘‘pink
wine,’’ ‘‘rose´ wine,’’ or ‘‘amber wine,’’
as the case may be.
(2) Grape variety. The names of one or
more grape varieties (for example,
‘‘chardonnay’’ or ‘‘cabernet franc and
merlot’’) may be used as the type
designation in accordance with § 4.156.
(3) Grape type designation of varietal
significance. A grape type designation of
varietal significance (for example,
‘‘moscato’’ or ‘‘scuppernong’’) may be
used as the type designation in
accordance with § 4.157.
(4) Semi generic designation of
geographic significance. A semi-generic
designation of geographic significance
(for example, ‘‘Angelica’’) may be used
as the type designation in accordance
with § 4.174.
(5) Non-generic designation that is a
distinctive designations of specific grape
wines. A non-generic designation that is
a distinctive designation of specific
grape wine (for example, ‘‘Bordeaux
Blanc’’) may be used as the type
designation in accordance with § 4.175.
(6) Table wine and light wine. Still
grape wine having an alcoholic content
greater than 7 percent by volume and
not in excess of 14 percent by volume
may be designated as ‘‘table wine’’ or
‘‘light wine.’’
(7) Dessert wine. Still grape wine
having an alcoholic content greater than
14 percent by volume and not in excess
of 24 percent by volume may be
designated as ‘‘dessert wine.’’
(8) Angelica. Angelica is grape wine
having the taste, aroma, and
characteristics generally attributed to
angelica. Angelica has an alcohol
content in excess of 14 percent but not
in excess of 24 percent by volume. The
alcohol content is derived in part from
added grape brandy or alcohol. Angelica
has been recognized as a semi-generic
designation of geographic significance
and is subject to the requirements of
§ 4.174.
(9) Madeira, port, and sherry.
Madeira, port, and sherry are grape
wines having the taste, aroma, and
characteristics generally attributed to
such wines. Madeira, port, and sherry
have an alcohol content in excess of 14
percent but not in excess of 24 percent
by volume. The alcohol content is
derived in part from added grape brandy
or alcohol. These grape wine types have
been recognized as semi-generic
designation of geographic significance
and are subject to the requirements of
§ 4.174.
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(10) Muscatel. Muscatel is grape wine
having the taste, aroma, and
characteristics generally attributed to
Muscatel. Muscatel has an alcohol
content in excess of 14 percent but not
in excess of 24 percent by volume. The
alcohol content is derived in part from
added grape brandy or alcohol.
Muscatel is a grape type designation.
(11) ‘‘Specially sweetened grape
wine.’’ Grape wine sweetened in
accordance with the standards set forth
in 26 U.S.C. 5385 must include the
words ‘‘extra sweet,’’ ‘‘specially
sweetened,’’ ‘‘specially sweet,’’ or
‘‘sweetened with excess sugar’’ as part
of the class and type designation.
§ 4.143 Sparkling grape wine—class and
type designation.
(a) Sparkling grape wine. Sparkling
grape wine is still grape wine made
effervescent with carbon dioxide
resulting solely from the secondary
fermentation of the wine within a closed
container, tank or bottle. Sparkling
grape wine must contain at least 0.392
grams of carbon dioxide per 100
milliliters of wine.
(b) Class designation of sparkling
wine. Sparkling grape wine must be
designated as ‘‘sparkling wine’’ or
‘‘sparkling grape wine.’’
(c) Type designations of sparkling
wine. In addition to the class
designation, sparkling grape wine may
be designated with one or more of the
following type designation(s) that apply.
(1) Red, white, amber, pink, rose´, and
blush. Sparkling wine that derives its
characteristic color from the presence or
absence of the red coloring matter of the
skins, juice, or pulp of grapes may be
designated as ‘‘sparkling red (or white,
blush, pink, rose´, or amber, as the case
may be) wine.’’
(2) Grape variety. The names of one or
more grape varieties following the word
‘‘sparkling’’ (for example, ‘‘sparkling
chardonnay’’ or ‘‘sparkling cabernet
franc and merlot’’) may be used as a
type designation for sparkling grape
wine in accordance with § 4.156.
(3) Grape type designation of varietal
significance. A grape type designation
(for example, ‘‘sparkling moscato’’ or
‘‘sparkling scuppernong’’) may be used
as a type designation for sparkling wine
in accordance with § 4.157.
(4) Semi-generic designation of
geographic significance. A semi-generic
designation of geographic significance
(for example, ‘‘champagne’’) may be
used as the type designation for
sparkling grape wine in accordance with
§ 4.174.
(5) Nongeneric designation that is a
distinctive designation. A nongeneric
designation that is a distinctive
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designation of a specific grape wine (for
example, ‘‘sparkling asti spumante’’)
may be used as the type designation in
accordance with § 4.176.
(6) Champagne. Champagne is a type
of sparkling grape wine with an alcohol
content of less than 14 percent alcohol
by volume. Champagne derives its
effervescence solely from the secondary
fermentation of the wine within glass
containers of not greater than one gallon
capacity, and possesses the taste, aroma,
and other characteristics attributed to
champagne as made in the Champagne
district of France. Champagne has been
recognized as a semi-generic
designation of geographic significance
and must be labeled in accordance with
§ 4.174.
(7) Champagne style and champagne
type. A sparkling wine having less than
14 percent alcohol by volume, and
having the taste, aroma, and
characteristics generally attributed to
champagne but not otherwise
conforming to the standard for
‘‘champagne’’ as prescribed by
paragraph (c)(6) of this section may, in
addition to but not in lieu of the class
designation ‘‘sparkling wine,’’ be further
designated as ‘‘champagne style’’ or
‘‘champagne type,’’ along with one of
the required terms denoting use of bulk
process set forth in paragraph (d) of this
section. The designation ‘‘champagne’’
has been recognized as a semi-generic
designation of geographic significance
and thus wines labeled with a
designation of ‘‘champagne style’’ or
‘‘champagne type’’ must be labeled in
accordance with § 4.174.
(8) Crackling wine, petillant wine,
frizzante wine, cremant, perlant,
reciotto, and other similar wine.
Crackling, petillant, frizzante, cremant,
perlant, and reciotto wines are types of
sparkling grape wines that are normally
less effervescent than champagne or
other similar sparkling wine, but
containing sufficient carbon dioxide in
solution to produce, upon pouring
under normal conditions, after the
disappearance of air bubbles, a slow and
steady effervescence evidenced by the
formation of gas bubbles flowing
through the wine. Such wines may be
designated as: ‘‘crackling,’’ ‘‘petillant,’’
‘‘frizzante,’’ ‘‘cremant,’’ ‘‘perlant,’’ and
‘‘reciotto’’ wines.
(d) Bulk process. In addition to the
product designation, any sparkling
grape wine that derives its effervescence
from secondary fermentation in
containers greater than 1-gallon capacity
must be labeled with one or more of the
following statements: ‘‘Bulk process,’’
‘‘fermented outside the bottle,’’
‘‘secondary fermentation outside the
bottle,’’ ‘‘secondary fermentation before
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bottling,’’ ‘‘not fermented in the bottle,’’
or ‘‘not bottle fermented.’’ The
statement ‘‘charmat method’’ or
‘‘charmat process’’ may be used as
additional information in addition to
but not in lieu of one of the required
statements. This information must be
stated on the same label as the product
designation and must appear in at least
half the type size as the product
designation.
§ 4.144 Carbonated grape wine—class and
type designation.
(a) Carbonated grape wine.
Carbonated grape wine is still grape
wine made effervescent by the injection
of carbon dioxide. Carbonated grape
wine must contain at least 0.392 grams
of carbon dioxide per 100 milliliters of
wine.
(b) Class designation of carbonated
wine. Carbonated grape wine must be
designated as ‘‘carbonated wine’’ or
‘‘carbonated grape wine.’’
(c) Type designation. In addition to
the class designation, carbonated grape
wine may be designated with one or
more of the following type
designation(s) that apply.
(1) Red, white, amber, pink, rose´, and
blush. Carbonated wine that derives its
characteristic color from the presence or
absence of the red coloring matter of the
skins, juice, or pulp of grapes may be
designated as ‘‘carbonated red (or white,
blush, pink, rose´, or amber, as the case
may be) wine.’’
(2) Grape variety. The names of one or
more grape varieties may be used as a
type designation for carbonated grape
wine (for example, ‘‘carbonated
chardonnay’’ or ‘‘carbonated merlot and
cabernet franc’’) in accordance with
§ 4.156.
(3) Grape type designation of varietal
significance. A grape type designation
may be used as a type designation for
carbonated grape wine (for example,
‘‘carbonated moscato’’ or ‘‘carbonated
scuppernong’’) in accordance with
§ 4.157.
(4) Semi-generic designation of
geographic significance. A semi-generic
designation of geographic significance
may be used as a type designation of
carbonated grape wine (for example,
‘‘carbonated Burgundy’’) in accordance
with § 4.174.
§ 4.145 Fruit wine—class and type
designation.
(a) Fruit wine. (1) Fruit wine is wine
produced by the normal alcoholic
fermentation of the juice of sound, ripe
fruit (including restored or unrestored
pure condensed fruit must) other than
grapes, with or without the addition,
after fermentation, of pure condensed
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fruit must and, with or without added
spirits of the type authorized for natural
wine under 26 U.S.C. 5382, but without
other addition or abstraction except as
may occur in cellar treatment of the type
authorized for natural wine under 26
U.S.C. 5382.
(2) Fruit wine may be ameliorated, or
sweetened, before, during, or after
fermentation, in a way that is consistent
with the limits set forth in 26 U.S.C.
5384 for natural fruit wine, provided
that fruit wine designated as ‘‘specially
sweetened fruit wine’’ (or with a similar
term) under paragraph (c)(8) of this
section may be sweetened in accordance
with the standards set forth in 26 U.S.C.
5385.
(3) The maximum volatile acidity,
calculated as acetic acid and exclusive
of sulfur dioxide, shall not be, for fruit
wine that does not contain brandy or
wine spirits, more than 0.14 gram, and
for other fruit wine, more than 0.12
gram, per 100 milliliters (20 degrees
Celsius).
(b) Class designation for fruit wine—
(1) Fruit wine derived wholly from one
kind of fruit. Fruit wine derived wholly
from one kind of fruit must be
designated with the name of that fruit
followed by the word ‘‘wine.’’ For
example, wine that is derived wholly
from strawberries, oranges, or peaches
must be designated as ‘‘strawberry
wine,’’ ‘‘orange wine,’’ ‘‘peach wine,’’
respectively.
(2) Fruit wine derived from more than
one kind of fruit. Fruit wine derived
from the fermentation of more than one
kind of fruit must be designated with
the name of each fruit, followed by the
word ‘‘wine’’ (for example, ‘‘blueberry/
banana wine,’’ or ‘‘orange-lime wine’’).
(For the rules regarding statements of
composition when two types of fruit
wine are blended together, see
§ 4.151(c)).
(c) Type designation of fruit wine.
Fruit wine may be designated with one
or more of the following applicable type
designation(s) in place of the class
designation.
(1) Cider. Fruit wine that is derived
wholly from apples may be designated
as ‘‘cider.’’
(2) Perry. Fruit wine that is derived
wholly from pears may be designated as
‘‘perry.’’
(3) Sparkling fruit wine. Fruit wine
that is rendered effervescent (at least
0.392 grams of carbon dioxide per 100
milliliters of wine) by carbon dioxide
resulting solely from the secondary
fermentation of the wine within a closed
container, tank, or bottle may be
designated as such provided that the
name of the fruit follows the word
‘‘sparkling.’’ For example, a fruit wine
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that is derived wholly from peaches and
rendered effervescent as indicated in
this paragraph, must be designated as
‘‘sparkling peach wine.’’ If a fruit wine
is authorized to carry the designation of
‘‘sparkling’’ and is derived from more
than one type of fruit, it must be
designated as ‘‘sparkling fruit wine’’ and
carry a statement that indicates the
types of fruit that the wine is made
from, or as ‘‘sparkling (name all fruits)
wine.’’
(4) Carbonated fruit wine. Fruit wine
that is rendered effervescent (at least
0.392 grams of carbon dioxide per 100
milliliters of wine) by carbon dioxide
may be designated as such provided that
the name of the fruit follows the word
‘‘carbonated.’’ For example, a fruit wine
that is wholly derived from peaches and
rendered effervescent as indicated in
this paragraph must be designated as
‘‘carbonated peach wine.’’ If a fruit wine
is authorized to carry the designation of
‘‘carbonated’’ and is derived from more
than one type of fruit, it must be
designated as ‘‘carbonated fruit wine’’
and carry a statement indicating the
types of fruit the wine is made from, or
as ‘‘carbonated (name all fruits) wine.’’
(5) Fruit table wine and fruit light
wine. Fruit wine that has an alcohol
content greater than 7 percent by
volume and not in excess of 14 percent
by volume may be designated as ‘‘(name
of fruit(s)) table wine’’ or ‘‘(name of
fruit(s)) light wine.’’
(6) Fruit dessert wine. Fruit wine that
has an alcohol content greater than 14
percent by volume and not in excess of
24 percent by volume may be
designated as ‘‘(name of fruit(s)) dessert
wine.’’
(7) Specially sweetened fruit wine.
Fruit wine sweetened in accordance
with the standards set forth in 26 U.S.C.
5385 must include the words ‘‘extra
sweet,’’ ‘‘specially sweetened,’’
‘‘specially sweet,’’ or ‘‘sweetened with
excess sugar’’ as part of the class and
type designation.
§ 4.146 Agricultural wine—class and type
designation.
(a) Agricultural wine. (1) Agricultural
wine is made from suitable agricultural
products other than the juice of grapes,
berries, or other fruits and is produced
by the normal alcoholic fermentation of
sound fermentable agricultural
products, either fresh or dried, or of the
restored or unrestored pure condensed
must thereof, and without added
distilled spirits.
(2) Agricultural wine may not be
flavored or colored; however, hops may
be used in the production of honey wine
in accordance with the standards set
forth in part 24 of this chapter.
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(3) Agricultural wine may be
ameliorated in accordance with the
standards set forth in part 24 of this
chapter. The maximum volatile acidity,
calculated as acetic acid and exclusive
of sulfur dioxide, shall not be, for wine
of this class, more than 0.14 grams per
100 milliliters (20 degrees Celsius).
(b) Class designation of agricultural
wine—(1) Agricultural wine derived
wholly from one kind of agricultural
product. Agricultural wine derived
wholly from one kind of agricultural
product must be designated by the word
‘‘wine’’ qualified by the name of the
agricultural product. For example,
agricultural wine that is derived wholly
from dandelions, raisins, or agave must
be designated as ‘‘dandelion wine,’’
‘‘raisin wine,’’ or ‘‘agave wine,’’
respectively. Agricultural wine derived
wholly from honey may be designated
as either ‘‘honey wine’’ or ‘‘mead.’’
(2) Agricultural wine derived from
more than one kind of agricultural
product. Agricultural wine derived from
the fermentation of more than one kind
of agricultural product must be
designated with the name of each
agricultural material, followed by the
word ‘‘wine’’ (for example, ‘‘dandelion
honey wine). (For the rules regarding
statements of composition when two
types of agricultural wine are blended
together, see § 4.151(c)).
(c) Type designations. One or more of
the following type designations may be
used in place of the class designation for
agricultural wine:
(1) Sparkling agricultural wine.
Agricultural wine that is rendered
effervescent (at least 0.392 grams of
carbon dioxide per 100 milliliters of
wine) by carbon dioxide resulting solely
from the secondary fermentation of the
wine within a closed container, tank, or
bottle may be designated as ‘‘sparkling
(name of agricultural product) wine.’’
For example, agricultural wine that is
derived wholly from dandelions and
rendered effervescent as stated in this
paragraph must be designated as
‘‘sparkling dandelion wine.’’
(2) Carbonated agricultural wine.
Agricultural wine that is rendered
effervescent (at least 0.392 grams of
carbon dioxide per 100 milliliters of
wine) by carbon dioxide may be
designated as ‘‘carbonated (name of
agricultural product) wine.’’ For
example, agricultural wine that is
derived wholly from dandelions and
rendered effervescent as stated in this
paragraph must be designated as
‘‘carbonated dandelion wine.’’
(3) Agricultural table wine and light
wine. Agricultural wine that has an
alcohol content greater than 7 percent
by volume and not in excess of 14
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percent by volume may be designated as
‘‘(name of agricultural product(s)) table
wine’’ or ‘‘(name of agricultural
product(s)) light wine.’’
(4) Agricultural dessert wine.
Agricultural wine having an alcoholic
content greater than 14 percent by
volume and not in excess of 24 percent
by volume may be designated as ‘‘(name
of agricultural product(s)) dessert
wine.’’
§ 4.147 Aperitif—class and type
designation.
(a) Aperitif wine. Aperitif wine is
compounded from grape wine
containing added brandy or alcohol may
be flavored with herbs and other natural
aromatic flavoring materials, with or
without the addition of caramel for
coloring purposes; and possess the taste,
aroma, and characteristics generally
attributed to aperitif wine; and must
have an alcoholic content of not less
than 15 percent by volume.
(b) Class designation of aperitif wine.
Aperitif wine must be designated as
aperitif wine unless paragraph (c) of this
section applies.
(c) Type designation of aperitif wine.
The following type designation may be
used for aperitif wine in place of the
class designation as applicable.
(1) Vermouth. Vermouth is a type of
aperitif wine made from grape wine,
having the taste, aroma, and
characteristics generally attributed to
vermouth. Vermouth has been
recognized as a generic designation of
geographical significance and may be
designated as ‘‘vermouth.’’
(2) [Reserved].
§ 4.148 Rice wine—class and type
designation.
(a) Rice wine. Rice wine is produced
from the alcoholic fermentation of rice,
with or without the addition of distilled
spirits.
(b) Class designation of rice wine.
Wine of this class must be designated as
rice wine unless it meets one of the type
designations in paragraph (c) of this
section.
(c) Type designation of rice wine. One
or more of the following type
designations may be used for rice wine
as applicable.
(1) Sake´. Sake´ is produced from rice
in accordance with the commonly
accepted method of manufacture of such
product. Sake´ has been designated as a
generic designation of geographic
significance under § 4.183.
(2) Gyeongju Beopju. Gyeongju Beopju
is a rice wine produced in the Republic
of Korea in accordance with the laws
and regulations of the Republic of Korea
governing the manufacture of such
product.
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(3) Rice table wine and light wine.
Rice wine that has an alcohol content
greater than 7 percent by volume and
not in excess of 14 percent by volume
may be designated as ‘‘rice table wine’’
or ‘‘rice light wine.’’
(4) Rice dessert wine. Rice wine
having an alcoholic content greater than
14 percent by volume and not in excess
of 24 percent by volume may be
designated as ‘‘rice dessert wine.’’
§ 4.149
Retsina wine—designation.
‘‘Retsina wine’’ is still grape table
wine fermented or flavored with resin.
Retsina has been recognized as a semigeneric designation of geographic
significance and is subject to the rules
found in § 4.174 with regard to semigeneric designations.
§ 4.150 Imitation and substandard or other
than standard wine—designation.
(a) ‘‘Imitation wine’’ shall bear as a
part of its designation the word
‘‘imitation,’’ and shall include:
(1) Any wine containing synthetic
materials.
(2) Any wine made from a mixture of
water with residue remaining after
thorough pressing of grapes, fruit, or
other agricultural products.
(3) Any class or type of wine the taste,
aroma, color, or other characteristics of
which have been acquired, in whole or
in part, by treatment with methods or
materials of any kind (except as
permitted in § 4.154(c)(5)), if the taste,
aroma, color, or other characteristics of
normal wines of such class or type are
acquired without such treatment.
(4) Any wine made from must
concentrated at any time to more than
80° brix.
(b) ‘‘Substandard wine’’ or ‘‘other
than standard wine’’ shall bear as a part
of its designation the words
‘‘substandard’’ or ‘‘other than standard,’’
and shall include:
(1) Any wine having a volatile acidity
in excess of the maximum prescribed
therefor in subpart I of this part.
(2) Any wine for which no maximum
volatile acidity is prescribed in subpart
I of this part, inclusive, having a volatile
acidity, calculated as acetic acid and
exclusive of sulfur dioxide, in excess of
0.14 gram per 100 milliliters (20 degrees
Celsius).
(3) Any wine for which a standard of
identity is prescribed in this subpart I of
this part, inclusive, which, through
disease, decomposition, or otherwise,
fails to have the composition, color, and
clean vinous taste and aroma of normal
wines conforming to such standard.
(4) Any ‘‘grape wine,’’ ‘‘fruit wine,’’ or
‘‘wine from other agricultural products’’
to which sugar, water, or a sugar-water
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solution has been added in excess of the
production standards for such wine as
prescribed in part 24 of this chapter and
in an amount which is in excess of the
limitations prescribed in the standards
of identity for these products, unless, in
the case of ‘‘fruit wine’’ and ‘‘wine from
other agricultural products’’ the normal
acidity of the material from which such
wine is produced is 20 parts or more per
thousand and the volume of the
resulting product has not been increased
more than 60 percent by such addition.
§ 4.151
Statements of composition.
(a) General. If the class of the wine is
not defined in one of the standards of
identity specified in subpart I of this
part, or the wine has been altered,
treated, or blended beyond the
standards permitted by § 4.154, a
truthful and adequate statement of
composition must appear on the label as
the class designation. A distinctive or
fanciful name, or a designation in
accordance with trade understanding
may appear in addition to the statement
of composition.
(b) The statement of composition may
not include any reference to a varietal
(grape type) designation, type
designation of varietal significance,
semi-generic geographic type
designation, or geographic distinctive
designation.
(c) The appropriate TTB officer may
require a statement of composition to
identify the base wine(s), including
blends of wine or fermentable materials,
as well as other materials added to the
wine before, during, and after
fermentation, as appropriate, in order to
ensure that the label provides adequate
information about the identity of the
product. Where a product consists
entirely of a blend of two different types
of fruit or agricultural wine, the
statement of composition must include
of the names of the types of wine (such
as, ‘‘blueberry wine and apple wine’’ or
‘‘mead/rhubarb wine’’).
§ § 4.152–4.153
[Reserved]
Cellar Treatment and Alteration of
Class and Type
§ 4.154 Cellar treatment and alteration of
class or type.
(a) Statement of composition. If the
class or type of any wine is altered, and
the product as altered does not fall
within any other class or type
designations specified in §§ 4.142
through 4.150, then such wine must be
labeled with a statement of composition
in accordance with § 4.151.
(b) Alteration of class or type. Any of
the following, occurring before, during,
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or after fermentation, will result in an
alteration of class or type of wine:
(1) Treatment of any class or type of
wine with a substance that is not a
natural component of the wine and that
remains in the wine, provided, that the
presence in finished wine of not more
than 350 parts per million of total sulfur
dioxide, or sulfites expressed as sulfur
dioxide, is not prohibited under this
paragraph;
(2) Treatment of any class or type of
wine with a substance that is not foreign
to the wine but that remains in the wine
in larger quantities than is naturally and
normally present in other wines of the
same class or type that are not so
treated;
(3) Treatment of any class or type of
wine with a method or material of any
kind to such an extent or in such a
manner as to affect the basic
composition of the wine by altering any
of its characteristic elements;
(4) Blending wine of one class with
wine of another class or blending of
wines of different types within the same
class; and
(5) Treatment of any class or type of
wine for which a standard of identity is
prescribed in this part with sugar, water,
or a sugar-water solution in excess of
the quantities specifically authorized in
that standard of identity, except that the
class or type of such wine is not deemed
to be altered:
(i) If fruit wine, agricultural wine,
aperitif wine, rice wine, and imitation
wine have a high normal acidity, if the
total solids content is not more than 22
grams per 100 cubic centimeters and the
content of natural acid is not less than
7.69 grams per liter; or
(ii) If grape wine, fruit wine,
agricultural wine, aperitif wine, rice
wine, retsina, and imitation wine have
the normal acidity of 20 grams per liter,
the volume of the resulting product has
been increased not more than 60 percent
by the addition of sugar, water, or a
sugar-water solution for the sole
purpose of correcting natural
deficiencies due to such acidity, and
(except in the case of such wine when
produced from fruit or berries other
than grapes) the phrase ‘‘Made with
over 35 percent sugar-water solution’’ is
included as part of the class and type
statement.
(c) Authorized cellar treatments: The
following treatments are authorized for
use provided that they do not result in
the alteration of the class or type of the
wine under the provisions of paragraph
(b) of this section:
(1) Treatment with filtering
equipment, or with fining or sterilizing
agents;
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(2) Treatment with pasteurization or
refrigeration as necessary to bring the
wine to commercial standards in
accordance with acceptable cellar
practice but only in such a manner and
to such an extent as not to change the
basic composition of the wine or
eliminate any of its characteristic
elements;
(3) Treatment with methods and
materials authorized for use under part
24 of this chapter (such as correcting
cloudiness, precipitation, or abnormal
color) to the minimum extent necessary
to correct the wine;
(4) Treatment with constituents
naturally present in the kind of fruit or
other agricultural product from which
the wine is produced for the purpose of
correcting deficiencies of these
constituents, but only to the extent that
such constituents would be present in
normal wines of the same class or type
not so treated;
(5) Treatment of any class or type of
wine involving the use of volatile fruitflavor concentrates in the manner
provided in section 5382 of the Internal
Revenue Code; and
(6) In accordance with the provisions
of §§ 4.143 through 4.157, carbon
dioxide may be used to maintain
counterpressure during the transfer of
finished sparkling wines from bulk
processing tanks to bottles, or from
bottle to bottle, provided that the carbon
dioxide content of the wine shall not be
increased by more than 0.009 gram. per
100 mL during the transfer operation.
§ 4.155
[Reserved]
Grape Type Labeling
§ 4.156 Varietal (grape type) labeling as
type designations.
(a) General. The names of one or more
grape varieties may be used as the type
designation of a grape wine only if the
wine is also labeled with an appellation
of origin, as defined in § 4.88.
(b) Use of one variety name. Except as
otherwise provided in paragraph (c)(1)
or (2) of this section, the name of a
single grape variety may appear as a
type designation on a wine label only if:
(1) Not less than 75 percent of the
wine is derived from grapes of that
variety, and
(2) The entire qualifying percentage of
the named variety was grown in the area
described by the labeled appellation of
origin.
(c) Exceptions. (1) Wine made from
any Vitis labrusca variety (exclusive of
hybrids with Vitis labrusca parentage)
may be labeled with the variety name if:
(i) Not less than 51 percent of the
wine is derived from grapes of the
named variety;
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(ii) The following statement is shown
on any label: ‘‘contains not less than 51
percent (name of variety).’’ This
statement does not have to appear if 75
percent or more of the wine is derived
from grapes of the named variety; and
(iii) The entire qualifying percentage
of the named variety was grown in the
labeled appellation of origin area.
(2) Wine made from any variety of any
species found by the appropriate TTB
officer upon appropriate application to
be too strongly flavored at 75 percent
minimum varietal content may be
labeled with the varietal name if:
(i) Not less than 51 percent of the
wine is derived from grapes of that
variety;
(ii) The statement ‘‘contains not less
than 51 percent (name of variety)’’ is
shown on the label (except that this
statement need not appear if 75 percent
or more of the wine is derived from
grapes of the named variety); and
(iii) The entire qualifying percentage
of the named variety was grown in the
labeled appellation of origin.
(d) Two or more varieties. The names
of two or more grape varieties may be
used as the type designation if:
(1) Not less than 85 percent of the
wine is derived from grapes of the
labeled varieties;
(2) The wine derived each grape
variety listed on the label is in greater
proportion than wine derived from
grapes of any variety that is not listed;
and
(3) The varieties must be listed in
descending order of predominance,
based on the percentage of wine derived
from each variety of grape.
(e) List of approved variety names for
American wine. The name of a grape
variety may be used in a type
designation for an American wine only
if that name has been approved by the
Administrator. A list of approved grape
variety names appears in subpart J of
this part.
(f) List of administratively approved
grape variety names. TTB
administratively approves grape variety
names pending future rulemaking. An
administrative approval is temporary in
nature, and it means that TTB will allow
the use of the grape variety name as a
type designation on a wine label
pending rulemaking. An administrative
approval may be revoked as a result of
subsequent rulemaking on the grape
variety name. See the TTB website, at
https://www.ttb.gov for a list of
administratively approved grape variety
names.
§ 4.157 Type designations of varietal
significance for American wines.
This section specifies type
designations of varietal significance that
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are used for American wines. A name
specified in this section may appear on
a label as a type designation for
American wine only if the wine is also
labeled with an appellation of origin as
defined in § 4.157.
(a) Muscadine. Muscadine is the name
of an American wine that derives at
least 75 percent of its volume from
Muscadinia rotundifolia grapes.
(b) Muscatel. Muscatel is the name of
a American wine that derives its
predominant taste, aroma, and
characteristics, and at least 75 percent of
its volume from any Muscat grape
source, and that conforms to the
standards specified in § 4.142(c)(11).
(c) Muscat or moscato. Muscat or
moscato is the name of an American
wine that derives at least 75 percent of
its volume from any Muscat grape
source.
(d) Scuppernong. Scuppernong is the
name of an American wine that derives
at least 75 percent of its volume from
bronze Muscadinia rotundifolia grapes.
§ 4.158
[Reserved]
Generic, Semi–Generic, and Non–
Generic Designations of Geographic
Significance
§ 4.173 Generic designations of
geographic significance.
(a) Definition. A generic designation is
the name of a class or type of wine that
once had geographic significance but
has been deemed by the Administrator
to have lost any geographic significance.
(b) List of generic designations.
Vermouth and Sake´ are generic
designations that may be used as a class
or type designation, in accordance with
subpart I of this part.
§ 4.174 Semi-generic designations of
geographic significance.
(a) Definition. A semi-generic
designation of geographic significance is
a geographic term which is also the
designation of a class or type of wine
and which has been deemed to have
become semi-generic by the
Administrator. A semi-generic
designation may be used to designate
wine of an origin other than that
indicated by such name only when used
in accordance with the rules set forth in
paragraph (c) of this section.
(b) List of semi-generic designations of
geographic significance. Each of the
following names has been found to be
semi-generic:
(1) Angelica (associated with wine
from the United States);
(2) Burgundy (associated with wine
from France);
(3) Chablis (associated with wine from
France);
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(4) Champagne (associated with wine
from France);
(5) Chianti (associated with wine from
Italy);
(6) Claret (associated with wine from
France);
(7) Haut Sauterne (associated with
wine from France);
(8) Madeira (associated with wine
from Portugal);
(9) Hock (associated with wine from
Germany);
(10) Malaga (associated with wine
from Spain),
(11) Marsala (associated with wine
from Italy);
(12) Moselle (associated with wine
from France);
(13) Port (associated with wine from
Portugal);
(14) Retsina (associated with wine
from Greece);
(15) Rhine wine (associated with wine
from Germany);
(16) Sauterne (associated with wine
from France);
(17) Sherry (associated with wine
from Spain); and
(18) Tokay (associated with wine from
Hungary).
(c) Use of authorized semi-generic
designations of geographic significance.
A semi-generic designation of
geographic significance may be used to
designate wines of an origin other than
that indicated by such name only if:
(1) There appears an appropriate
appellation of origin disclosing the true
place of origin of the wine in the same
field of vision as the semi-generic
designation;
(2) The person, or the successor in
interest of a person, using a semigeneric designation name listed in
paragraphs (b)(2) through (18) of this
section, held a COLA or a certificate of
exemption from label approval (see
§ 4.22) issued before March 10, 2006, for
a wine label bearing the same brand
name or brand name and a distinctive
or fanciful name and on which the semigeneric designation appeared; and
(3) The wine so designated conforms
to the standard of identity, if any, for
such wine contained in the regulations
in this part or, if there is no such
standard, to the trade understanding of
such class or type.
(d) Imported wine originating from the
place indicated by the name. In the case
of wine originating from the place
indicated by the name, the semi-generic
designation may be used to designate
the wine only if:
(1) The wine conforms either to the
standard of identity specified for the
wine in subpart I of this part or, if no
such standard exists, to the trade
understanding of the class or type of the
wine; and
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(2) The wine conforms to the
requirements of the foreign laws and
regulations that govern the composition,
method of production, and designation
of wines available for consumption
within the country of origin.
§ 4.175 Nongeneric designation of
geographic significance and nongeneric
designations that are distinctive
designations of specific grape wines.
(a) Definition. A nongeneric
designation of geographic significance is
a name of geographic significance that
has not been found by the Administrator
to be generic or semi-generic. A
nongeneric name of geographic
significance may be deemed to be the
distinctive designation of a wine if the
Administrator finds that it is known to
the consumer and to the trade as the
designation of a specific wine of a
particular place or region,
distinguishable from all other wines.
(b) Use of nongeneric designations of
geographic significance. Nongeneric
designations of geographic significance
are appellation of origin names that may
be used only to designate wines of the
origin indicated by such name in
accordance with §§ 4.88 through 4.91, as
applicable. Examples of nongeneric
names that are not distinctive
designations of specific grape wines are
American, California, Lake Erie, Napa
Valley, New York State, French, and
Spanish. Additional examples of foreign
nongeneric names are listed in subpart
C of part 12 of this chapter.
(c) Use of nongeneric names that are
distinctive designations of specific grape
wines. Nongeneric designations of
geographic significance are appellation
of origin names that may be used only
to designate wines of the origin
indicated by such name in accordance
with §§ 4.88 through 4.91, as applicable,
and that may also be used as the class
and type designation of the wine.
Examples of nongeneric names that are
distinctive designations of specific
grape wines are: Bordeaux Blanc,
Bordeaux Rouge, Graves, Medoc, SaintJulien, Chateau Yquem, Chateau
Margaux, Chateau Lafite, Pommard,
Chambertin, Montrachet, Rhone,
Liebfraumilch, Rudesheimer, Forster,
Deidesheimer, Schloss Johannisberger,
Lagrima, and Lacryma Christi. A list of
foreign distinctive designations, as
determined by the Administrator,
appears in subpart D of part 12 of this
chapter.
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§ 4.176–4.177
[Reserved]
Subpart J—American Grape Variety
Names
§ 4.191
Approval of grape variety names.
(a) Any interested person may
petition the Administrator for the
approval of a grape variety name. The
petition may be in the form of a letter
and should provide evidence of the
following:
(1) Acceptance of the new grape
variety;
(2) The validity of the name for
identifying the grape variety;
(3) That the variety is used or will be
used in winemaking; and
(4) That the variety is grown and used
in the United States.
(b) For the approval of names of new
grape varieties, documentation
submitted with the petition to provide
evidence that the requirements in
paragraph (a) of this section have been
met may include:
(1) Reference to the publication of the
name of the variety in a scientific or
professional journal of horticulture or a
published report by a professional,
scientific or winegrowers’ organization;
(2) Reference to a plant patent, if so
patented; and
(3) Information pertaining to the
commercial potential of the variety,
such as the acreage planted and its
location or market studies.
(c) The Administrator will not
approve a grape variety name if:
(1) The name has previously been
used for a different grape variety;
(2) The name contains a term or name
found to be misleading under § 4.122; or
(3) The name of a new grape variety
contains the term ‘‘Riesling.’’
(d) For new grape varieties developed
in the United States, the Administrator
may determine if the use of names
which contain words of geographical
significance, place names, or foreign
words are misleading under § 4.122. The
Administrator will not approve the use
of a grape variety name found to be
misleading.
(e) TTB administratively approves
grape variety names pending future
rulemaking. An administrative approval
is temporary in nature, and it means
that TTB will allow the use of the grape
variety name as a type designation on a
wine label pending rulemaking. An
administrative approval may be revoked
as a result of subsequent rulemaking on
the grape variety name. The list of
administratively approved grape variety
names can be found on TTB’s website
at https://www.ttb.gov.
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§ 4.192
List of approved names.
The following grape variety names
have been approved by the
Administrator for use as type
designations for American wines. When
more than one name may be used to
identify a single variety of grape, the
synonym is shown in parentheses
following the grape variety name. Grape
variety names may be spelled with or
without the hyphens or diacritic marks
indicated in the list. The list of grape
variety names administratively
approved under § 4.191(e) is available
on the TTB website at https://
www.ttb.gov.
Aglianico
Agawam
Albarin˜o (Alvarinho)
Albemarle
Aleatico
Alicante Bouschet
Aligote´
Alvarelha˜o
Alvarinho (Albarin˜o)
Arneis
Aurore
Auxerrois
Bacchus
Baco blanc
Baco noir
Barbera
Beacon
Beclan
Bellandais
Beta
Biancolella
Black Corinth
Black Malvoisie (Cinsaut)
Black Monukka
Black Muscat (Muscat Hamburg)
Black Pearl
Blanc Du Bois
Blaufra¨nkish (Lemberger, Limberger)
Blue Eye
Bonarda
Bountiful
Brianna
Burdin 4672
Burdin 5201
Burdin 11042
Burgaw
Burger
Cabernet Diane
Cabernet Dore´
Cabernet franc
Cabernet Pfeffer
Cabernet Sauvignon
Calzin
Campbell Early (Island Belle)
Canada Muscat
Canaiolo (Canaiolo Nero)
Canaiolo Nero (Canaiolo)
Captivator
Carignan (Carignane)
Carignane (Carignan)
Carlos
Carmene`re
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Carmine
Carnelian
Cascade
Castel 19–637
Catawba
Cayuga White
Centurion
Chambourcin
Chancellor
Charbono
Chardonel
Chardonnay
Chasselas dore´
Chelois
Chenin blanc
Chief
Chowan
Cinsaut (Black Malvoisie)
Clairette blanche
Clinton
Colombard (French Colombard)
Colobel
Corot noir
Cortese
Corvina
Concord
Conquistador
Couderc noir
Counoise
Cowart
Creek
Crimson Cabernet
Cynthiana (Norton)
Dearing
De Chaunac
Delaware
Diamond
Dixie
Dolcetto
Doreen
Dornfelder
Dulcet
Durif (Petite Sirah)
Dutchess
Early Burgundy
Early Muscat
Edelweiss
Eden
Ehrenfelser
Ellen Scott
Elvira
Emerald Riesling
Erbaluce
Favorite
Feher Szagos
Ferna˜o Pires
Fern Munson
Fiano
Flame Tokay
Flora
Florental
Folle blanche
Forastera
Fredonia
Freedom
Freisa
French Colombard (Colombard)
Frontenac
Frontenac gris
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Fry
Fume´ blanc (Sauvignon blanc)
Furmint
Gamay noir
Garnacha (Grenache, Grenache noir)
Garnacha blanca (Grenache blanc)
Garronet
Geneva Red 7
Gewu¨rztraminer
Gladwin 113
Glennel
Gold
Golden Isles
Golden Muscat
Graciano
Grand Noir
Green Hungarian
Grenache (Garnacha, Grenache noir)
Grenache blanc (Garnacha blanca)
Grenache noir (Garnacha, Grenache)
Grignolino
Grillo
Gros Verdot
Gru¨ner Veltliner
Helena
Herbemont
Higgins
Horizon
Hunt
Iona
Interlaken
Isabella
Island Belle (Campbell Early)
Ives
James
Jewell
Joannes Seyve 12–428
Joannes Seyve 23–416
Kerner
Kay Gray
Kleinberger
La Crescent
LaCrosse
Lagrein
Lake Emerald
Lambrusco
Landal
Landot noir
Lenoir
Le´on Millot
Lemberger (Blaufra¨nkish, Limberger)
Limberger (Blaufra¨nkisch, Lemberger)
Louise Swenson
Lucie Kuhlmann
Madeline Angevine
Magnolia
Magoon
Malbec
Malvasia bianca (Moscato greco)
Mammolo
Mare´chal Foch
Marquette
Marsanne
Mataro (Monastrell, Mourve`dre)
Melody
Melon (Melon de Bourgogne)
Melon de Bourgogne (Melon)
Merlot
Meunier (Pinot Meunier)
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Mish
Mission
Missouri Riesling
Monastrell (Mataro, Mourve`dre)
Mondeuse (Refosco)
Montefiore
Montepulciano
Moore Early
Morio-Muskat
Moscato greco (Malvasia bianca)
Mourve`dre (Mataro, Monastrell)
Mu¨ller-Thurgau
Mu¨nch
Muscadelle
Muscat blanc (Muscat Canelli)
Muscat Canelli (Muscat blanc)
Muscat du Moulin
Muscat Hamburg (Black Muscat)
Muscat of Alexandria
Muscat Ottonel
Naples
Nebbiolo
Ne´grette
Negrara
Negro Amaro
Nero d’Avola
New York Muscat
Niagara
Noah
Noble
Noiret
Norton (Cynthiana)
Ontario
Orange Muscat
Palomino
Pamlico
Pedro Ximenes
Peloursin
Petit Bouschet
Petit Manseng
Petit Verdot
Petite Sirah (Durif)
Peverella
Picpoul (Piquepoul blanc)
Pinotage
Pinot blanc
Pinot Grigio (Pinot gris)
Pinot gris (Pinot Grigio)
Pinot Meunier (Meunier)
Pinot noir
Piquepoul blanc (Picpoul)
Prairie Star
Precoce de Malingre
Pride
Primitivo
Princess
Rayon d’Or
Ravat 34
Ravat 51 (Vignoles)
Ravat noir
Redgate
Refosco (Mondeuse)
Regale
Reliance
Riesling (White Riesling)
Rkatsiteli (Rkatziteli)
Rkatziteli (Rkatsiteli)
Roanoke
Rondinella
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Rosette
Roucaneuf
Rougeon
Roussanne
Royalty
Rubired
Ruby Cabernet
St. Croix
St. Laurent
St. Pepin
St. Vincent
Sabrevois
Sagrantino
Saint Macaire
Salem
Salvador
Sangiovese
Sauvignon blanc (Fume´ blanc)
Sauvignon gris
Scarlet
Scheurebe
Se´millon
Sereksiya
Seyval (Seyval blanc)
Seyval blanc (Seyval)
Shiraz (Syrah)
Siegerrebe
Siegfried
Southland
Souza˜o
Steuben
Stover
Sugargate
Sultanina (Thompson Seedless)
Summit
Suwannee
Sylvaner
Symphony
Syrah (Shiraz)
Swenson Red
Tannat
Tarheel
Taylor
Tempranillo (Valdepen˜as)
Teroldego
Thomas
Thompson Seedless (Sultanina)
Tinta Madeira
Tinto ca˜o
Tocai Friulano
Topsail
Touriga
Traminer
Traminette
Trebbiano (Ugni blanc)
Trousseau
Trousseau gris
Ugni blanc (Trebbiano)
Valdepen˜as (Tempranillo)
Valdiguie´
Valerien
Valiant
Valvin Muscat
Van Buren
Veeblanc
Veltliner
Ventura
Verdelet
Verdelho
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Vergennes
Vermentino
Vidal blanc
Vignoles (Ravat 51)
Villard blanc
Villard noir
Vincent
Viognier
Vivant
Welsch Rizling
Watergate
Welder
White Riesling (Riesling)
Wine King
Yuga
Zinfandel
Zinthiana
Zweigelt
§ 4.193 Alternative names permitted for
temporary use.
(a) Johannisberg Riesling. The name
‘‘Johannisberg Riesling’’ may be used as
the type designation in lieu of
‘‘Riesling’’ for wines bottled prior to
January 1, 2006.
(b) Agwam. The name ‘‘Agwam’’ may
be used as the type designation in lieu
of ‘‘Agawam’’ for wines bottled prior to
October 29, 2012.
Subpart K—Standards of Fill and
Authorized Container Sizes
§ 4.201
General.
(a) Except as provided in paragraph
(b) of this section, no person engaged in
business as a producer, blender,
importer, or wholesaler of wine, directly
or indirectly, or through an affiliate,
may sell or ship or deliver for sale or
shipment, or otherwise introduce in
interstate or foreign commerce, or
receive therein, or remove from customs
custody for consumption, any wine in
containers, unless the wine is bottled in
conformity with §§ 4.202 and 4.203.
(b) Sections 4.202 and 4.203 do not
apply to:
(1) Rice wine;
(2) Wine packed in containers of 18
liters or more;
(3) Imported wine in the original
containers in which such wine entered
customs custody, if the wine was
bottled or packed before January 1,
1979; or
(4) Imported wine bottled or packed
before January 1, 1979, and certified as
to such in a statement, available to the
appropriate TTB officer upon request,
signed by an official duly authorized by
the appropriate foreign government.
(c) Section 4.203 does not apply to
wine domestically bottled or packed,
either in or out of customs custody,
before January 1, 1979, if the wine was
bottled or packed according to the
standards of fill (listed in ounces,
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§ 4.204 Aggregate packaging to meet
standard of fill requirements.
quarts, and gallons) prescribed by
regulation before that date.
§ 4.202
Standard wine containers.
(a) General. Wine must be bottled in
standard wine containers, as defined in
this paragraph. A standard wine
container is a container that is made,
formed, and filled in such a way that it
does not mislead purchasers as regards
it contents. An individual carton or
other container of a bottle may not be
so designed as to mislead purchasers as
to the size of the bottle it contains.
(b) Headspace. Wine containers must
be designed and filled so that the
headspace, or empty space between the
top of the wine and the top of the
container, meets the following
specifications:
(1) If the net contents stated on the
label are 187 milliliters or more, the
headspace must not exceed 6 percent of
the container’s total capacity after
closure.
(2) In the case of all other containers,
the headspace must not exceed 10
percent of the container’s total capacity
after closure.
(c) Design. Regardless of the
correctness of the stated net contents, a
wine container is deemed to mislead the
purchaser if it is made and formed in
such a way that its actual capacity is
substantially less than the capacity it
appears to have upon visual
examination under ordinary conditions
of purchase or use.
(d) Fill. Containers must be filled with
a quantity of wine that corresponds to
one of the authorized container sizes
prescribed in § 4.203.
§ 4.203
Standards of fill (container sizes).
(a) Authorized standards of fill.
Subject to the container requirements
set forth in § 4.202, wine subject to this
part must be placed in one of the
following authorized container sizes:
(1) 3 liters.
(2) 1.5 liters.
(3) 1 liter.
(4) 750 milliliters.
(5) 500 milliliters.
(6) 375 milliliters.
(7) 187 milliliters.
(8) 100 milliliters.
(9) 50 milliliters.
(b) Sizes larger than 3 liters. Wine
may be bottled in containers of 4 liters
or larger if the containers are filled and
labeled in quantities of whole liters (4
liters, 5 liters, 6 liters, etc.). This applies
to containers that have a capacity of up
to 17 liters.
(c) Tolerances. The tolerances in fill
are the same as are allowed by § 4.62 in
respect to statement of net contents on
labels.
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(a) Under the conditions set forth in
paragraphs (b) through (f) of this
section, industry members may use
aggregate packaging to satisfy a standard
of fill required under § 4.203. In other
words, industry members may bottle
wine in containers that do not meet a
standard of fill, as long as those
containers are then packaged together in
a larger container and the entire net
contents of the aggregate package meets
a standard of fill. For example, thirty 25milliliter (mL) bottles may be packaged
together to meet the 750 mL standard of
fill. The industry member must submit
the actual external container and a
sample of one of the internal containers
to TTB together with the industry
member’s application for label approval.
(b) The class and type, tax class, and
alcohol content of the wine in each of
the individual internal containers of the
aggregate package must be the same.
(c) The external container, as well as
each of the individual internal
containers, must be labeled with all of
the mandatory label information
required by this part and parts 16 and
24 of this chapter; however, an
appropriate standard of fill is not
required for internal containers.
(d) The external container must
include a net contents statement that
indicates how the aggregate package
equals an authorized standard of fill (for
example, ‘‘750 mL = 30 containers of 25
mL each’’). The internal container must
include a net contents statement in
accordance with § 4.68.
(e) The external container must be
shrink-wrapped, boxed, or sealed in
such a manner that the smaller
containers cannot be easily removed.
(f) Each of the smaller containers must
be labeled ‘‘NOT FOR INDIVIDUAL
SALE.’’
Subpart L—Recordkeeping and
Substantiation Requirements
§ 4.211 Recordkeeping requirements—
certificates.
(a) Certificates of label approval
(COLAs). Upon request by the
appropriate TTB officer, a bottler or
importer must provide evidence that a
container of wine is covered by a COLA
or a certificate of exemption. This
requirement may be satisfied by
providing original certificates,
photocopies or electronic copies of
COLAs, or records showing the TTB
Identification number assigned to the
COLA. TTB may request such
information for a period of five years
from the date that the products covered
by the COLA were removed from the
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bottler’s premises or from customs
custody, as applicable.
(b) Labels with revisions. Where labels
on containers reflect revisions to the
approved label that have been made in
compliance with allowable revisions
authorized by TTB Form 5100.31 or
otherwise authorized by TTB, the bottler
or importer must, upon request by the
appropriate TTB officer, identify the
COLA covering the product if the
product is required to be covered by a
COLA. TTB may request such
information for a period of five years
from the date that the products covered
by the COLA were removed from the
bottler’s premises or from customs
custody, as applicable.
(c) Other recordkeeping requirements
under this part. See § 4.30 for other
recordkeeping requirements under this
part.
§ 4.212
Substantiation requirements.
(a) Application. The substantiation
requirements of this section apply to
any claim made on any label or
container subject to the requirements of
this part.
(b) Reasonable basis in fact. All
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Claims that contain express or implied
statements regarding the amount of
support for the claim (such as ‘‘tests
prove,’’ or ‘‘studies show’’) must have
the level of substantiation that is
claimed. Any labeling claim that does
not have a reasonable basis in fact, or
cannot be adequately substantiated
upon the request of the appropriate TTB
officer, will be considered misleading
within the meaning of § 4.122(b)(2).
(c) Evidence that claims are
adequately substantiated. The
appropriate TTB officer may request
that bottlers and importers provide
evidence that labeling claims are
adequately substantiated at any time
within a period of five years from the
time the wine was removed from the
bottling premises or from customs
custody, as applicable.
Subpart M—Penalties and
Compromise of Liability
§ 4.221
Criminal penalties.
A violation of the labeling provisions
of 27 U.S.C. 205(e) is punishable as a
misdemeanor. See 27 U.S.C. 207 for the
statutory provisions relating to criminal
penalties, consent decrees, and
injunctions.
§ 4.222
Conditions of basic permit.
A basic permit is conditioned upon
compliance with the requirements of 27
U.S.C. 205, including the labeling
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provisions of this part. A willful
violation of the conditions of a basic
permit provides grounds for the
revocation or suspension of the permit,
as applicable, as set forth in part 1 of
this chapter.
§ 4.223
Compromise.
Pursuant to 27 U.S.C. 207, the
appropriate TTB officer is authorized,
with respect to any violation of 27
U.S.C. 205, to compromise the liability
arising with respect to such violation
upon payment of a sum not in excess of
$500 for each offense, to be collected by
the appropriate TTB officer and to be
paid into the Treasury as miscellaneous
receipts.
Subpart N—Paperwork Reduction Act
§ 4.231 OMB control numbers assigned
under the Paperwork Reduction Act.
(a) Purpose. This subpart displays the
control numbers assigned to information
collection requirements in this part by
the Office of Management and Budget
(OMB) under the Paperwork Reduction
Act of 1995, Public Law 104–13.
(b) Chart. The following chart
identifies each section in this part that
contains an information collection
requirement and the OMB control
number that is assigned to that
information collection requirement.
Section where
contained
4.21
4.22
4.23
4.24
4.25
4.27
4.28
4.30
................
................
................
................
................
................
................
................
4.62 ................
4.63 ................
4.81 ................
4.82 ................
4.83 ................
4.84 ................
4.85 ................
4.86 ................
4.87 ................
4.88 ................
4.89 ................
4.90 ................
4.91 ................
4.92 ................
4.93 ................
4.94 ................
4.95 ................
4.96 ................
4.97 ................
4.98 ................
4.121 ..............
4.122 ..............
4.123 ..............
4.124 ..............
4.125 ..............
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Current OMB Control No.
1513–0020.
1513–0020, 1513–0111.
1513–0020, 1513–0111.
1513–0020, 1513–0064.
1513–0020, 1513–0111.
1513–0020.
1513–0122.
1513–0064, 1513–0119,
New control number.
1513–0087.
1513–0084, 1513–0087.
1513–0087, 1513–0121.
1513–0087, 1513–0121.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
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Section where
contained
4.126
4.127
4.128
4.129
4.130
4.131
4.133
4.134
4.135
4.136
4.201
4.211
4.212
■
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
Current OMB Control No.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0064.
New control number.
New control number.
2. Revise part 5 to read as follows:
PART 5—LABELING OF DISTILLED
SPIRITS
Sec.
5.0 Scope.
Subpart A—General Provisions
5.1
5.2
5.3
Definitions.
Territorial extent.
General requirements and prohibitions
under the FAA Act.
5.4–5.6 [Reserved]
5.7 Other TTB labeling regulations that
apply to distilled spirits.
5.8 Distilled spirits for export.
5.9 Compliance with Federal and State
requirements.
5.10 Other related regulations.
5.11 Forms.
5.12 Delegations of the Administrator.
Subpart B—Certificates of Label Approval
and Certificates of Exemption From Label
Approval
Requirements for Distilled Spirits Bottled in
the United States
5.21
Requirement for certificates of label
approval (COLAs) for distilled spirits
bottled in the United States.
5.22 Rules regarding certificates of label
approval (COLAs) for distilled spirits
bottled in the United States.
5.23 Application for exemption from label
approval for distilled spirits bottled in
the United States.
Subpart C—Alteration of Labels, Relabeling,
and Adding Information to Containers
5.41 Alteration of labels.
5.42 Authorized relabeling activities by
distillers and importers.
5.43 Relabeling activities that require
separate written authorization from TTB.
5.44 Adding a label or other information to
a container that identifies the
wholesaler, retailer, or consumer.
Subpart D—Label Standards
5.51 Firmly affixed requirements.
5.52 Legibility and other requirements for
mandatory information on labels.
5.53 Minimum type size of mandatory
information.
5.54 Visibility of mandatory information.
5.55 Language requirements.
5.56 Additional information.
Subpart E—Mandatory Label Information
5.61 What constitutes a label for purposes
of mandatory information.
5.62 Packaging (cartons, coverings, and
cases).
5.63 Mandatory label information.
5.64 Brand name.
5.65 Alcohol content.
5.66 Name and address for domestically
bottled distilled spirits that were wholly
made in the United States.
5.67 Name and address for domestically
bottled distilled spirits that were bottled
after importation.
5.68 Name and address for distilled spirits
that were imported in a container.
5.69 Country of origin.
5.70 Net contents.
5.71 Neutral spirits and name of
commodity.
5.72 Coloring materials.
5.73 Treatment of whisky or brandy with
wood.
5.74 Statements of age, storage, and
percentage.
Subpart F—Restricted Labeling Statements
5.81 General.
Food Allergen Labeling
5.82 Voluntary disclosure of major food
allergens.
5.83 Petitions for exemption from major
food allergen labeling.
5.24
Production Claims
5.84 Use of the term ‘‘organic.’’
5.85 Environmental, sustainability, and
similar statements.
5.86 [Reserved]
Administrative Rules
Other Label Terms
5.87 ‘‘Barrel Proof’’ and similar terms.
5.88 Bottled in bond.
5.89 Multiple distillation claims.
5.90 Terms related to Scotland.
5.91 Use of the term ‘‘pure.’’
Requirements for Distilled Spirits Imported
in Containers
Certificates of label approval (COLAs)
for distilled spirits imported in
containers.
5.25 Rules regarding certificates of label
approval (COLAs) for distilled spirits
imported in containers.
5.27
Presenting certificates of label
approval (COLAs) to Government
officials.
5.28 Formulas, samples, and
documentation.
5.29 Personalized labels.
5.30 Certificates of age and origin for
imported spirits.
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Subpart G—Prohibited Labeling Practices
5.101 General.
5.102 False or untrue statements.
5.103 Obscene or indecent depictions.
Subpart H—Labeling Practices That Are
Prohibited If They Are Misleading
5.121 General.
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5.122 Misleading statements or
representations.
5.123 Guarantees.
5.124 Disparaging statements.
5.125 Tests or analyses.
5.126 Depictions of government symbols.
5.127 Depictions simulating government
stamps or relating to supervision.
5.128 Claims related to wine or malt
beverages.
5.129 Health-related statements.
5.130 Appearance of endorsement.
Subpart A—General Provisions
§ 5.15.1
Subpart I—Standards of Identity for
Distilled Spirits
5.141 The standards of identity in general.
5.142 Neutral spirits or alcohol.
5.143 Whisky.
5.144 Gin.
5.145 Brandy.
5.146 Blended applejack.
5.147 Rum.
5.148 Agave spirits.
5.149 Absinthe or absinth.
5.150 Cordials and liqueurs.
5.151 Flavored spirits.
5.152 Imitations.
5.153 Diluted spirits.
5.154 Rules for geographical designations.
5.155 Alteration of class and type.
5.156 Distilled spirits specialty products.
5.157–5.165 [Reserved]
5.166 Statement of composition.
Subpart J—Formulas
5.191
5.192
5.193
5.194
Application.
Formula requirements.
Operations requiring formulas.
Adoption of predecessor’s formulas.
Subpart K—Standards of Fill and
Authorized Container Sizes
5.201 General.
5.202 Standard liquor containers.
5.203 Standards of fill (container sizes).
5.204 Aggregate packaging to meet standard
of fill requirements.
5.205 Distinctive liquor bottle approval.
Subpart L—Recordkeeping and
Substantiation Requirements
5.211 Recordkeeping requirements—
certificates.
5.212 Substantiation requirements.
Subpart M—Penalties and Compromise of
Liability
5.221
5.222
5.223
Criminal penalties.
Conditions of basic permit.
Compromise.
Subpart N—Paperwork Reduction Act
5.231 OMB control numbers assigned under
the Paperwork Reduction Act.
Authority: 26 U.S.C. 5301, 7805, 27 U.S.C.
205 and 207.
§ 5.05.0
Scope.
This part sets forth requirements that
apply to the labeling and packaging of
distilled spirits in containers, including
requirements for label approval and
rules regarding mandatory, regulated,
and prohibited labeling statements.
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Definitions.
When used in this part and on forms
prescribed under this part, the following
terms have the meaning assigned to
them in this section, unless the terms
appear in a context that requires a
different meaning. Any other term
defined in the Federal Alcohol
Administration Act (FAA Act) and used
in this part has the same meaning
assigned to it by the FAA Act.
Administrator. The Administrator,
Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
Age. The length of time during which,
after distillation and before bottling, the
distilled spirits have been stored in oak
barrels in such a manner that chemical
changes take place as a result of direct
contact with the wood. For bourbon
whisky, rye whisky, wheat whisky, malt
whisky, or rye malt whisky, and straight
whiskies other than straight corn
whisky, aging must occur in charred
new oak barrels.
American proof. See Proof.
Appropriate TTB officer. An officer or
employee of the Alcohol and Tobacco
Tax and Trade Bureau (TTB) authorized
to perform any function relating to the
administration or enforcement of this
part by the current version of TTB Order
1135.5, Delegation of the
Administrator’s Authorities, in 27 CFR
part 5, Labeling of Distilled Spirits.
Bottler. Any distiller or processor of
distilled spirits who places distilled
spirits in containers.
Brand name. The name under which
a distilled spirit or line of distilled
spirits is sold.
Certificate holder. The permittee or
brewer whose name, address, and basic
permit number, plant registry number,
or brewer’s notice number appears on
an approved TTB Form 5100.31.
Certificate of exemption from label
approval. A certificate issued on TTB
Form 5100.31, which authorizes the
bottling of wine or distilled spirits,
under the condition that the product
will under no circumstances be sold,
offered for sale, shipped, delivered for
shipment, or otherwise introduced by
the applicant, directly or indirectly, into
interstate or foreign commerce.
Certificate of label approval (COLA).
A certificate issued on TTB Form
5100.31 that authorizes the bottling of
wine, distilled spirits, and malt
beverages, or the removal of bottled
wine, distilled spirits, and malt
beverages from customs custody for
introduction into commerce, as long as
the product bears labels identical to the
labels appearing on the face of the
certificate, or labels with changes
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authorized by TTB on the certificate or
otherwise.
Container. Any can, bottle, box with
an internal bladder, cask, keg, or other
closed receptacle, in any size or
material, that is for use in the sale of
distilled spirits at retail. See subpart K
of this part for rules regarding
authorized standards of fill for
containers.
Customs officer. An officer of U.S.
Customs and Border Protection (CBP) or
any agent or other person authorized by
law to perform the duties of such an
officer.
Distilled spirits. Ethyl alcohol,
hydrated oxide of ethyl, spirits of wine,
whisky, rum, brandy, gin, and other
distilled spirits, including all dilutions
and mixtures thereof, for nonindustrial
use. The term ‘‘distilled spirits’’ does
not include mixtures containing wine,
bottled at 48 degrees of proof or less, if
the mixture contains more than 50
percent wine on a proof gallon basis.
The term ‘‘distilled spirits’’ also does
not include products containing less
than 0.5 percent alcohol by volume.
Distilling season. The period from
January 1 through June 30, which is the
spring distilling season, or the period
from July 1 through December 31, which
is the fall distilling season.
Distinctive or fanciful name. A
descriptive name or phrase chosen to
identify a distilled spirits product on
the label. It does not include a brand
name, class or type designation, or
statement of composition.
FAA Act. The Federal Alcohol
Administration Act.
Gallon. A U.S. gallon of 231 cubic
inches at 60 degrees Fahrenheit.
Grain. Includes cereal grains and the
seeds of the pseudocereals amaranth,
buckwheat, and quinoa.
In bulk. In barrels or other receptacles
having a capacity in excess of 1 wine
gallon (3.785 liters).
Interstate or foreign commerce.
Commerce between any State and any
place outside of that State or commerce
within the District of Columbia or
commerce between points within the
same State but through any place
outside of that State.
Liter or litre. A metric unit of capacity
equal to 1,000 cubic centimeters or
1,000 milliliters (mL) of distilled spirits
at 15.56 degrees Celsius (60 degrees
Fahrenheit), and equivalent to 33.814
U.S. fluid ounces.
Net contents. The amount, by volume,
of distilled spirits held in a container.
Oak barrel. A cylindrical oak drum of
approximately 50 gallons used to age
bulk spirits.
Permittee. Any person holding a basic
permit under the FAA Act.
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Person. Any individual, corporation,
partnership, association, joint-stock
company, business trust, limited
liability company, or other form of
business enterprise, including a
receiver, trustee, or liquidating agent
and including an officer or employee of
any agency of a State or political
subdivision of a State.
Produced at or distilled at. When
used with reference to specific degrees
of proof of a distilled spirits product,
the phrases ‘‘produced at’’ and
‘‘distilled at’’ mean the composite proof
of the distilled spirits after completion
of distillation and before reduction in
proof, if any.
Proof. The ethyl alcohol content of a
liquid at 60 degrees Fahrenheit, stated
as twice the percentage of ethyl alcohol
by volume.
Proof gallon. A gallon of liquid at 60
degrees Fahrenheit that contains 50
percent by volume of ethyl alcohol
having a specific gravity of 0.7939 at 60
degrees Fahrenheit, referred to water at
60 degrees Fahrenheit as unity, or the
alcoholic equivalent thereof.
Spirits. See Distilled spirits.
State. One of the 50 States of the
United States, the District of Columbia,
or the Commonwealth of Puerto Rico.
TTB. The Alcohol and Tobacco Tax
and Trade Bureau of the Department of
the Treasury.
United States (U.S.). The 50 States,
the District of Columbia, and the
Commonwealth of Puerto Rico.
§ 5.25.2
Territorial extent.
The provisions of this part apply to
the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.
§ 5.35.3 General requirements and
prohibitions under the FAA Act.
(a) Certificates of label approval
(COLAs). Subject to the requirements
and exceptions set forth in the
regulations in subpart B of this part, any
bottler of distilled spirits, and any
person who removes distilled spirits in
containers from customs custody for
sale or any other commercial purpose, is
required to first obtain from TTB a
COLA covering the label(s) on each
container.
(b) Alteration, mutilation, destruction,
obliteration, or removal of labels.
Subject to the requirements and
exceptions set forth in the regulations in
subpart C of this part, it is unlawful to
alter, mutilate, destroy, obliterate, or
remove labels on distilled spirits
containers. This prohibition applies to
any person, including retailers, holding
distilled spirits for sale in interstate or
foreign commerce or any person holding
distilled spirits for sale after shipment
in interstate or foreign commerce.
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(c) Labeling requirements for distilled
spirits. It is unlawful for any person
engaged in business as a bottler,
wholesaler, or importer of distilled
spirits, directly or indirectly, or through
an affiliate, to sell or ship, or deliver for
sale or shipment, or otherwise introduce
or receive in interstate or foreign
commerce, or remove from customs
custody, any distilled spirits in
containers unless the distilled spirits are
bottled in containers, and the containers
are marked, branded and labeled, in
conformity with the regulations in this
part.
(d) Labeled in accordance with this
part. In order to be labeled in
accordance with the regulations in this
part, a container of distilled spirits must
be in compliance with the following
requirements:
(1) It must bear one or more label(s)
meeting the standards for ‘‘labels’’ set
forth in subpart D of this part;
(2) One or more of the labels on the
container must include the mandatory
information set forth in subpart E of this
part;
(3) Claims on any label, container, or
packaging (as defined in § 5.82) must
comply with the rules for regulated
label statements, as applicable, set forth
in subpart F of this part;
(4) Statements or any other
representations on any label, container,
or packaging (as defined in §§ 5.81(b)
and 5.121(b)) may not violate the
regulations in subparts G and H of this
part regarding certain practices on
labeling of distilled spirits;
(5) The class and type designation on
the label(s), as well as any designation
appearing on containers or packaging
must comply with the standards of
identity set forth in subpart I of this
part; and
(6) The distilled spirits in the
container may not be adulterated within
the meaning of the Federal Food, Drug,
and Cosmetic Act.
(e) Bottled in accordance with this
part. In order to be bottled in
accordance with the regulations in this
part, the distilled spirits must be bottled
in authorized standards of fill in
containers that meet the requirements of
subpart K of this part.
§ § 5.4§ 5.4–5.6
[Reserved]
§ 5.75.7 Other TTB labeling regulations
that apply to distilled spirits.
In addition to the regulations in this
part, distilled spirits must also comply
with the following TTB labeling
regulations:
(a) Health warning statement.
Alcoholic beverages, including distilled
spirits, that contain at least half of one
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percent alcohol by volume, must be
labeled with a health warning
statement, in accordance with the
Alcoholic Beverage Labeling Act of 1988
(ABLA). The regulations implementing
the ABLA are contained in 27 CFR part
16.
(b) Internal Revenue Code
requirements. The labeling and marking
requirements for distilled spirits under
the Internal Revenue Code are found in
27 CFR part 19, subpart T (for domestic
products) and 27 CFR part 27, subpart
E (for imported products).
§ 5.85.8
Distilled spirits for export.
Distilled spirits that are exported in
bond without payment of tax directly
from a distilled spirits plant or from
customs custody are not subject to this
part. For purposes of this section, direct
exportation in bond does not include
exportation after distilled spirits have
been removed for consumption or sale
in the United States, with appropriate
tax determination or payment.
§ 5.95.9 Compliance with Federal and
State requirements.
(a) General. Compliance with the
requirements of this part relating to the
labeling and bottling of distilled spirits
does not relieve industry members from
responsibility for complying with other
applicable Federal and State
requirements, including but not limited
to those highlighted in paragraphs (b)
and (c) of this section.
(b) Ingredient safety. While it remains
the responsibility of the industry
member to ensure that any ingredient
used in production of distilled spirits
complies fully with all applicable U.S.
Food and Drug Administration (FDA)
regulations pertaining to the safety of
food ingredients and additives, the
appropriate TTB officer may at any time
request documentation to establish such
compliance. As set forth in § 5.3(d),
distilled spirits that are adulterated
under the Federal Food, Drug, and
Cosmetic Act are not labeled in
accordance with this part.
(c) Containers. While it remains the
responsibility of the industry member to
ensure that containers are made of
suitable materials that comply with all
applicable FDA health and safety
regulations for the packaging of
beverages for consumption, the
appropriate TTB officer may at any time
request documentation to establish such
compliance.
§ 5.10
Other related regulations.
(a) TTB regulations. Other TTB
regulations that relate to distilled spirits
are listed in paragraphs (a)(1) through
(9) of this section:
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(1) 27 CFR part 1—Basic Permit
Requirements Under the Federal
Alcohol Administration Act,
Nonindustrial Use of Distilled Spirits
and Wine, Bulk Sales and Bottling of
Distilled Spirits;
(2) 27 CFR part 13—Labeling
Proceedings;
(3) 27 CFR part 14—Advertising of
Alcohol Beverage Products;
(4) 27 CFR part 16—Alcoholic
Beverage Health Warning Statement;
(5) 27 CFR part 19—Distilled Spirits
Plants;
(6) 27 CFR part 26—Liquors and
Articles From Puerto Rico and the
Virgin Islands;
(7) 27 CFR part 27—Importation of
Distilled Spirits, Wines, and Beer;
(8) 27 CFR part 28—Exportation of
Alcohol; and
(9) 27 CFR part 71—Rules of Practice
in Permit Proceedings.
(b) Other Federal Regulations. The
regulations listed in paragraphs (b)(1)
through (9) of this section issued by
other Federal agencies also may apply:
(1) 7 CFR part 205—National Organic
Program;
(2) 19 CFR part 11—Packing and
Stamping; Marking;
(3) 19 CFR part 102—Rules of Origin;
(4) 19 CFR part 134—Country of
Origin Marking;
(5) 21 CFR part 1—General
Enforcement Regulations, Subpart H,
Registration of Food Facilities, and
Subpart I, Prior Notice of Imported
Food;
(6) 21 CFR parts 70–82, which pertain
to food and color additives;
(7) 21 CFR part 101—Food Labeling;
(8) 21 CFR part 110—Current Good
Manufacturing Practice in
Manufacturing, Packing, or Holding
Human Food; and
(9) 21 CFR parts 170–189, which
pertain to food additives and secondary
direct food additives.
§ 5.11
Forms.
(a) General. TTB prescribes and
makes available all forms required by
this part. Any person completing a form
must provide all of the information
required by each form as indicated by
the headings on the form and the
instructions for the form. Each form
must be filed in accordance with this
part and the instructions for the form.
(b) Electronically filing forms. The
forms required by this part can be filed
electronically by using TTB’s online
filing systems: COLAs Online and
Formulas Online. Anyone who intends
to use one of these online filing systems
must first register to use the system by
accessing the TTB website at https://
www.ttb.gov.
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(c) Obtaining paper forms. Forms
required by this part are available for
printing through the TTB website
(https://www.ttb.gov) or by mailing a
request to the Alcohol and Tobacco Tax
and Trade Bureau, National Revenue
Center, 550 Main Street, Room 8002,
Cincinnati, OH 45202.
60647
(a) This section applies to distilled
spirits bottled in the United States,
outside of customs custody.
(b) No person may bottle distilled
spirits without first applying for and
obtaining a COLA issued by the
appropriate TTB officer. This
requirement applies to distilled spirits
produced and bottled in the United
States and to distilled spirits imported
in bulk, regardless of where produced,
and bottled in the United States.
Bottlers may obtain an exemption from
this requirement only if they satisfy the
conditions set forth in § 5.23.
(2) Relieve the certificate holder from
its responsibility to ensure that all
ingredients used in the production of
the distilled spirit comply with
applicable requirements of the Food and
Drug Administration with regard to
ingredient safety; or
(3) Relieve the certificate holder from
liability for violations of the FAA Act,
the Alcohol Beverage Labeling Act of
1988, the Internal Revenue Code, or
related regulations and rulings.
(i) The issuance of a COLA does not
mean that TTB has verified the accuracy
of any representations or claims made
on the label with respect to the product
in the container. It is the responsibility
of the applicant to ensure that all
information on the application is true
and correct, and that all labeling
representations and claims are truthful,
accurate, and not misleading with
respect to the product in the container.
(ii) A distilled spirit may be
mislabeled even when the label is
covered by a COLA. For example, if the
label on the container contains
representations that are false or
misleading when applied to the product
in the container, the distilled spirit is
not labeled in accordance with the
regulations in this part, even if it is
covered by a COLA.
(c) When to obtain a COLA. The
COLA must be obtained prior to
bottling. No bottler may bottle distilled
spirits, or remove distilled spirits from
the premises where bottled, unless a
COLA has been obtained.
(d) Application for a COLA. The
bottler may apply for a COLA by
submitting an application to TTB on
Form 5100.31, in accordance with the
instructions on the form. The bottler
may apply for a COLA either
electronically by accessing TTB’s online
system, COLAs Online, at https://
www.ttb.gov, or by submitting the paper
form. For procedures regarding the
issuance of COLAs, see part 13 of this
chapter.
§ 5.22 Rules regarding certificates of label
approval (COLAs) for distilled spirits
bottled in the United States.
§ 5.23 Application for exemption from
label approval for distilled spirits bottled in
the United States.
(a) What a COLA authorizes. An
approved TTB Form 5100.31 authorizes
the bottling of distilled spirits covered
by the COLA, as long as the container
bears labels identical to the labels
appearing on the face of the COLA, or
labels with changes authorized by TTB
on the COLA or otherwise. The list of
allowable changes can be found on the
TTB website at https://www.ttb.gov.
(b) What a COLA does not do. Among
other things, the issuance of a COLA
does not:
(1) Confer trademark protection;
(a) Exemption. Any bottler of distilled
spirits may apply to be exempt from the
requirements of this part, by showing to
the satisfaction of the appropriate TTB
officer that the distilled spirits to be
bottled are not to be sold, offered for
sale, or shipped or delivered for
shipment, or otherwise introduced, in
interstate or foreign commerce.
(b) Application required. The bottler
must file an application on TTB Form
5100.31 for exemption from label
approval before bottling the distilled
spirits. The bottler may apply for a
§ 5.12
Delegations of the Administrator.
Most of the regulatory authorities of
the Administrator contained in this part
are delegated to ‘‘appropriate TTB
officers.’’ To determine which officers
have been delegated specific authorities,
see the current version of TTB Order
1135.5, Delegation of the
Administrator’s Authorities in 27 CFR
part 5, Labeling of Distilled Spirits.
Copies of this order can be obtained by
accessing the TTB website (https://
www.ttb.gov) or by mailing a request to
the Alcohol and Tobacco Tax and Trade
Bureau, National Revenue Center, 550
Main Street, Room 8002, Cincinnati, OH
45202.
Subpart B—Certificates of Label
Approval and Certificates of
Exemption from Label Approval.
Requirements for Distilled Spirits
Bottled in the United States
§ 5.21 Requirement for certificates of label
approval (COLAs) for distilled spirits
bottled in the United States.
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certificate of exemption from label
approval either electronically, by
accessing TTB’s online system, COLAs
Online, at https://www.ttb.gov, or by
using the paper form. For procedures
regarding the issuance of certificates of
exemption from label approval, see part
13 of this chapter.
(c) Labeling of distilled spirits covered
by certificate of exemption. The
application for a certificate of
exemption from label approval requires
that the applicant identify the State in
which the product will be sold. As a
condition of receiving exemption from
label approval, the label covered by an
approved certificate of exemption must
include the statement ‘‘For sale in
[name of State] only.’’ See §§ 19.517 and
19.518 of this chapter for additional
labeling rules that apply to distilled
spirits covered by a certificate of
exemption.
Requirements for Distilled Spirits
Imported in Containers
§ 5.24 Certificates of label approval
(COLAs) for distilled spirits imported in
containers.
(a) Application requirement. Any
person removing distilled spirits in
containers from customs custody for
consumption must first apply for and
obtain a COLA covering the distilled
spirits from the appropriate TTB officer.
(b) Release of distilled spirits from
customs custody. Distilled spirits,
imported in containers, are not eligible
for release from customs custody for
consumption, and no person may
remove such distilled spirits from
customs custody for consumption,
unless the person removing the distilled
spirits has obtained and is in possession
of a COLA covering the distilled spirits.
(c) Filing requirements. If filing
electronically, the importer must file
with U.S. Customs and Border
Protection (CBP), at the time of filing the
customs entry, the TTB-assigned
identification number of the valid COLA
that corresponds to the label on the
brand or lot of distilled spirits to be
imported. If the importer is not filing
electronically, the importer must
provide a copy of the COLA to CBP at
the time of entry. In addition, the
importer must provide a copy of the
applicable COLA, and proof of the
certificate holder’s authorization if
applicable, upon request by the
appropriate TTB officer or a customs
officer.
(d) Scope of this section. The COLA
requirement imposed by this section
applies only to distilled spirits that are
removed for sale or any other
commercial purpose. Distilled spirits
that are imported in containers are not
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eligible for a certificate of exemption
from label approval. See 27 CFR 27.49,
27.74, and 27.75 for labeling exemptions
applicable to certain imported samples
of distilled spirits.
(e) Relabeling in customs custody.
Containers of distilled spirits in customs
custody that are required to be covered
by a COLA but are not labeled in
conformity with a COLA must be
relabeled, under the supervision and
direction of customs officers, prior to
their removal from customs custody for
consumption.
§ 5.25 Rules regarding certificates of label
approval (COLAs) for distilled spirits
imported in containers.
(a) What COLA authorizes. An
approved TTB Form 5100.31 authorizes
the use of the labels covered by the
COLA on containers of distilled spirits,
as long as the container bears labels
identical to the labels appearing on the
face of the COLA, or labels with changes
authorized by the form or otherwise
authorized by TTB.
(b) What a COLA does not do. Among
other things, the issuance of a COLA
does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from
its responsibility to ensure that all
ingredients used in the production of
the distilled spirit comply with
applicable requirements of the Food and
Drug Administration with regard to
ingredient safety; or
(3) Relieve the certificate holder from
liability for violations of the FAA Act,
the Alcoholic Beverage Labeling Act,
the Internal Revenue Code, or related
regulations and rulings.
(i) The issuance of a COLA does not
mean that TTB has verified the accuracy
of any representations or claims made
on the label with respect to the product
in the container. It is the responsibility
of the applicant to ensure that all
information on the application is true
and correct and that all labeling
representations and claims are truthful,
accurate, and not misleading with
respect to the product in the container.
(ii) Distilled spirits may be mislabeled
even when the label is covered by a
COLA. For example, if the label on the
container contains representations that
are false or misleading when applied to
the product in the container the
distilled spirits are not labeled in
accordance with the regulations in this
part, even if it is covered by a COLA.
(c) When to obtain a COLA. The
COLA must be obtained prior to the
removal of distilled spirits in containers
from customs custody for consumption.
(d) Application for a COLA. The
person responsible for the importation
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of distilled spirits must obtain approval
of the labels by submitting an
application to TTB on TTB Form
5100.31. A person may apply for a
COLA either electronically, by accessing
TTB’s online system, COLAs Online, at
https://www.ttb.gov, or by submitting
the paper form. For procedures
regarding the issuance of COLAs, see
part 13 of this chapter.
Administrative Rules
§ 5.27 Presenting certificates of label
approval (COLAs) to Government officials.
A certificate holder must present the
original or a paper or electronic copy of
the appropriate COLA upon the request
of any duly authorized representative of
the United States Government.
§ 5.28 Formulas, samples, and
documentation.
(a) In addition to any formula
specifically required under subpart J,
TTB may require formulas under certain
circumstances in connection with the
label approval process. Prior to or in
conjunction with the review of an
application for a certificate of label
approval (COLA) on TTB Form 5100.31,
the appropriate TTB officer may require
a bottler or importer to submit a
formula, the results of laboratory testing
of the distilled spirits, or a sample of
any distilled spirits or ingredients used
in producing a distilled spirit. The
appropriate TTB officer also may
request such information or samples
after the issuance of such a COLA, or in
connection with any distilled spirit that
is required to be covered by a COLA. A
formula may be filed electronically by
using Formulas Online, or it may be
submitted on paper on Form 5100.51.
See § 5.11 for more information on
forms and Formulas Online.
(b) Upon request of the appropriate
TTB officer, a bottler or importer must
submit a full and accurate statement of
the contents of any container to which
labels are to be or have been affixed, as
well as any other documentation on any
issue pertaining to whether the distilled
spirits are labeled in accordance with
this part.
§ 5.29
Personalized labels.
(a) General. Applicants for label
approval may obtain permission from
TTB to make certain changes in order to
personalize labels without having to
resubmit labels for TTB approval.
Personalized labels may contain a
personal message, picture, or other
artwork that is specific to the consumer
who is purchasing the product. For
example, a distiller may offer individual
or corporate customers labels that
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commemorate an event such as a
wedding or grand opening.
(b) Application. Any person who
intends to offer personalized labels must
submit a template for the personalized
label with the application for label
approval, and must note on the
application a description of the specific
personalized information that may
change.
(c) Approval of personalized label. If
the application complies with the
regulations, TTB will issue a certificate
of label approval (COLA) with a
qualification allowing the
personalization of labels. The
qualification will allow the certificate
holder to add or change items on the
personalized label such as salutations,
names, graphics, artwork,
congratulatory dates and names, or
event dates without applying for a new
COLA. All of these items on
personalized labels must comply with
the regulations of this part.
(d) Changes not allowed to
personalized labels. Approval of an
application to personalize labels does
not authorize the addition of any
information that discusses either the
alcohol beverage or characteristics of the
alcohol beverage or that is inconsistent
with or in violation of the provisions of
this part or any other applicable
provision of law or regulations.
§ 5.30 Certificates of age and origin for
imported spirits.
(a) Scotch, Irish, and Canadian
whiskies. (1) Scotch, Irish, and Canadian
whiskies, imported in containers, are
not eligible for release from customs
custody for consumption, and no person
may remove such whiskies from
customs custody for consumption,
unless that person has obtained and is
in possession of an invoice
accompanied by a certificate of origin
issued by an official duly authorized by
the appropriate foreign government,
certifying:
(i) That the particular distilled spirits
are Scotch, Irish, or Canadian whisky, as
the case may be;
(ii) That the distilled spirits have been
manufactured in compliance with the
laws of the respective foreign
governments regulating the manufacture
of whisky for home consumption; and
(iii) That the product conforms to the
requirements of the Immature Spirits
Act of such foreign governments for
spirits intended for home consumption.
(2) In addition, an official duly
authorized by the appropriate foreign
government must certify to the age of
the youngest distilled spirits in the
container. The age certified shall be the
period during which, after distillation
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and before bottling, the distilled spirits
have been stored in oak containers.
(b) Brandy, including Cognac. Brandy
(other than fruit brandies of a type not
customarily stored in oak containers) or
Cognac, imported in containers, is not
eligible for release from customs
custody for consumption, and no person
may remove such brandy or Cognac
from customs custody for consumption,
unless the person so removing the
brandy or Cognac possesses a certificate
issued by an official duly authorized by
the appropriate foreign country
certifying that the age of the youngest
brandy or Cognac in the container is not
less than two years, or if age is stated
on the label that none of the distilled
spirits are of an age less than that stated.
The age certified shall be the period
during which, after distillation and
before bottling, the distilled spirits have
been stored in oak containers. If the
label of any fruit brandy, not stored in
oak containers, bears any statement of
storage in another type of container, the
brandy is not eligible for release from
customs custody for consumption, and
no person may remove such brandy
from customs custody for consumption,
unless the person so removing the
brandy possesses a certificate issued by
an official duly authorized by the
appropriate foreign government
certifying to such storage. Cognac,
imported in containers, is not eligible
for release from customs custody for
consumption, and no person may
remove such Cognac from customs
custody for consumption, unless the
person so removing the Cognac
possesses a certificate issued by an
official duly authorized by the French
Government, certifying that the product
is grape brandy distilled in the Cognac
region of France and entitled to be
designated as ‘‘Cognac’’ by the laws and
regulations of the French Government.
(c) Rum. Rum imported in containers
that contain any statement of age is not
eligible to be released from customs
custody for consumption, and no person
may remove such rum from customs
custody for consumption, unless the
person so removing the rum possesses a
certificate issued by an official duly
authorized by the appropriate foreign
country, certifying to the age of the
youngest rum in the container. The age
certified shall be the period during
which, after distillation and before
bottling, the distilled spirits have been
stored in oak containers.
(d) Tequila. (1) Tequila imported in
containers is not eligible for release
from customs custody for consumption,
and no person may remove such Tequila
from customs custody for consumption,
unless the person removing such
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Tequila possesses a certificate issued by
an official duly authorized by the
Mexican Government stating that the
product is entitled to be designated as
Tequila under the applicable laws and
regulations of the Mexican Government.
(2) If the label of any Tequila
imported in containers contains any
statement of age, the Tequila is not
eligible for release from customs
custody for consumption, and no person
may remove such Tequila from customs
custody for consumption, unless the
person removing the Tequila possesses
a certificate issued by an official duly
authorized by the Mexican Government
as to the age of the youngest Tequila in
the container. The age certified shall be
the period during which the Tequila has
been stored in oak containers after
distillation and before bottling.
(e) Other whiskies. Whisky, as defined
in § 5.143(c)(2) through (7) and (10)
through (14), that is imported in
containers may be released from
customs custody for econsumption only
if the invoice is accompanied by a
certificate issued by a duly authorized
official of the appropriate foreign
government certifying:
(1) In the case of whisky (regardless
of whether it is mixed or blended) that
contains no neutral spirits:
(i) The type of the whisky as defined
in § 5.143;
(ii) The American proof at which the
whisky was distilled;
(iii) That no neutral spirits (or other
whisky in the case of straight whisky)
have been added or otherwise included
in the whisky
(iv) The age of the whisky; and
(v) The type of oak barrel in which the
whisky was aged and whether the barrel
was new or reused, charred or
uncharred; and
(2) In the case of whisky containing
neutral spirits:
(i) The type of the whisky as defined
in § 5.143;
(ii) The percentage of straight whisky
used in the blend, if any;
(iii) The American proof at which any
straight whisky in the blend was
distilled;
(iv) The percentage of whisky other
than straight whisky in the blend, if any;
(v) The percentage of neutral spirits in
the blend and the name of the
commodity from which the neutral
spirits were distilled;
(vi) The age of any straight whisky
and the age of any other whisky in the
blend; and
(vii) The type of oak barrel in which
the age of each whisky in the blend was
attained and whether the barrel was
new or reused and charred or
uncharred.
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(f) Miscellaneous. Distilled spirits
(other than Scotch, Irish, and Canadian
whiskies, and Cognac) imported in
containers are not eligible for release
from customs custody for consumption,
and no person shall remove such spirits
from customs custody for consumption,
unless that person has obtained and is
in possession of an invoice
accompanied by a certificate of origin
issued by an official duly authorized by
the appropriate foreign government, if
the issuance of such certificates with
respect to such distilled spirits is
required by the foreign government
concerned, certifying as to the identity
of the distilled spirits and that the
distilled spirits have been manufactured
in compliance with the laws of the
respective foreign government
regulating the manufacture of such
distilled spirits for home consumption.
(g) Retention of certificates—distilled
spirits imported in containers. The
importer of distilled spirits imported in
containers must retain for five years
following the removal of the bottled
distilled spirits from customs custody
copies of the certificates (and
accompanying invoices, if applicable)
required by paragraphs (a) through (f) of
this section, and must provide them
upon request of the appropriate TTB
officer or a customs officer.
(h) Distilled spirits imported in bulk
for bottling in the United States.
Distilled spirits that would be required
under paragraphs (a) through (f) of this
section to be covered by a certificate of
age and/or a certificate of origin and that
are imported in bulk for bottling in the
United States may be removed from the
premises where bottled only if the
bottler possesses a certificate of age and/
or a certificate of origin, issued by the
appropriate entity as set forth in
paragraphs (a) through (f) of this section,
applicable to the spirits that provides
the same information as a certificate
required under paragraphs (a) through
(f) of this section, would provide for like
spirits imported in bottles. The bottler
of distilled spirits imported in bulk
must retain for five years following the
removal of such spirits from the
domestic plant where bottled copies of
the certificates required by paragraphs
(a) through (f), and must provide them
upon request of the appropriate TTB
officer.
(i) Retention of distilled spirits
certificates—distilled spirits in bulk.
The bottler of distilled spirits imported
in bulk must retain, for five years
following the removal of such distilled
spirits from the premises where bottled,
copies of the certificates required by
paragraphs (a) through (f) of this section,
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and must provide them upon request of
the appropriate TTB officer.
Subpart C—Alteration of Labels,
Relabeling, and Adding Information to
Containers
§ 5.41
Alteration of labels.
(a) Prohibition. It is unlawful for any
person to alter, mutilate, destroy,
obliterate or remove any mark, brand, or
label on distilled spirits in containers
held for sale in interstate or foreign
commerce, or held for sale after
shipment in interstate or foreign
commerce, except as authorized by
§ 5.42, § 5.43, or § 5.44, or as otherwise
authorized by Federal law.
(b) Authorized relabeling. For
purposes of the relabeling activities
authorized by this subpart, the term
‘‘relabel’’ includes the alteration,
mutilation, destruction, obliteration, or
removal of any existing mark, brand, or
label on the container, as well as the
addition of a new label (such as a sticker
that adds information about the product
or information engraved on the
container) to the container, and the
replacement of a label with a new label
bearing identical information.
(c) Obligation to comply with other
requirements. Authorization to relabel
under this subpart in no way authorizes
the placement of labels on containers
that do not accurately reflect the brand,
bottler, identity, or other characteristics
of the product; nor does it relieve the
person conducting the relabeling
operations from any obligation to
comply the regulations in this part and
with State or local law, or to obtain
permission from the owner of the brand
where otherwise required.
§ 5.42 Authorized relabeling activities by
distillers and importers.
(a) Relabeling at distilled spirits plant
premises. Proprietors of distilled spirits
plant premises may relabel domestically
bottled distilled spirits prior to removal
from, and after return to bond at, the
distilled spirits plant premises, with
labels covered by a certificate of label
approval (COLA), without obtaining
separate permission from TTB for the
relabeling activity.
(b) Relabeling after removal from
distilled spirits plant premises.
Proprietors of distilled spirits plant
premises may relabel domestically
bottled distilled spirits after removal
from distilled spirits plant premises
with labels covered by a COLA, without
obtaining separate permission from TTB
for the relabeling activity.
(c) Relabeling in customs custody.
Under the supervision of customs
officers, imported distilled spirits in
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containers in customs custody may be
relabeled without obtaining separate
permission from TTB for the relabeling
activity. Such containers must bear
labels covered by a COLA upon their
removal from customs custody for
consumption. See § 5.24(b).
(d) Relabeling after removal from
customs custody. Imported distilled
spirits in containers may be relabeled by
the importer thereof after removal from
customs custody without obtaining
separate permission from TTB for the
relabeling activity, as long as the labels
are covered by a COLA.
§ 5.43 Relabeling activities that require
separate written authorization from TTB.
Any persons holding distilled spirits
for sale who need to relabel the
containers but are not eligible to obtain
a COLA to cover the labels that they
wish to affix to the containers may
apply for written permission for the
relabeling of distilled spirits containers.
The appropriate TTB officer may permit
relabeling of distilled spirits in
containers if the facts show that the
relabeling is for the purpose of
compliance with the requirements of
this part or State law. The written
application must include copies of the
original and proposed new labels; the
circumstances of the request, including
the reason for relabeling; the number of
containers to be relabeled; the location
where the relabeling will take place; and
the name and address of the person who
will be conducting the relabeling
operations.
§ 5.44 Adding a label or other information
to a container that identifies the wholesaler,
retailer, or consumer.
Any label or other information that
identifies the wholesaler, retailer, or
consumer of the distilled spirits may be
added to containers (by the addition of
stickers, engraving, stenciling, etc.)
without prior approval from TTB and
without being covered by a certificate of
label approval or certificate of
exemption from label approval. Such
information may be added before or
after the containers have been removed
from distilled spirits plant premises or
released from customs custody. The
information added:
(a) May not violate the provisions of
subpart F, G, or H of this part;
(b) May not contain any reference to
the characteristics of the product; and
(c) May not be added to the container
in such a way that it obscures any other
labels on the container.
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Subpart D—Label Standards
§ 5.51
Firmly affixed requirements.
Any label that is not an integral part
of the container must be affixed to the
container in such a way that it cannot
be removed without thorough
application of water or other solvents.
§ 5.52 Legibility and other requirements
for mandatory information on labels.
§ 5.54
(a) Readily legible. Mandatory
information on labels must be readily
legible to potential consumers under
ordinary conditions.
(b) Separate and apart. Mandatory
information on labels, except brand
names, must be separate and apart from
any additional information. This does
not preclude the addition of brief
optional phrases of additional
information as part of the class or type
designation (such as, ‘‘premium vodka’’
or ‘‘delicious Tequila’’), the name and
address statement (such as, ‘‘Proudly
distilled and bottled by ABC Distilling
Company, Atlanta, GA, for over 30
years’’) or other information required by
§ 5.63(a) and (b), as long as the
additional information does not detract
from the prominence of the mandatory
information. The statements required by
§ 5.63(c) may not include additional
information.
(c) Contrasting background.
Mandatory information must appear in
a color that contrasts with the
background on which it appears, except
that if the net contents are blown into
a glass container, they need not be
contrasting. The color of the container
and of the spirits must be taken into
account if the label is transparent or if
mandatory label information is etched,
engraved, sandblasted, or otherwise
carved into the surface of the container
or is branded, stenciled, painted,
printed, or otherwise directly applied
on to the surface of the container.
Examples of acceptable contrasts are:
(1) Black lettering appearing on a
white or cream background; or
(2) White or cream lettering appearing
on a black background.
(d) Capitalization. Except for the
aspartame statement when required by
§ 5.63(c)(4), which must appear in all
capital letters, mandatory information
prescribed by this part may appear in all
capital letters, in all lower case letters,
or in mixed-case using both capital and
lower-case letters.
§ 5.53 Minimum type size of mandatory
information.
All capital and lowercase letters in
statements of mandatory information on
labels must meet the following type size
requirements.
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(a) Containers of more than 200
milliliters. All mandatory information
must be in script, type, or printing that
is at least two millimeters in height.
(b) Containers of 200 milliliters or
less. All mandatory information must be
in script, type, or printing that is at least
one millimeter in height.
Visibility of mandatory information.
Mandatory information on a label
must be readily visible and may not be
covered or obscured in whole or in part.
See § 5.62 for rules regarding packaging
of containers (including cartons,
coverings, and cases). See part 14 of this
chapter for regulations pertaining to
advertising materials.
§ 5.55
Language requirements.
(a) General. Mandatory information
must appear in the English language,
with the exception of the brand name
and except as provided in paragraphs (c)
and (d) of this section.
(b) Foreign languages. Additional
statements in a foreign language,
including translations of mandatory
information that appears elsewhere in
English on the label, are allowed on
labels and containers as long as they do
not in any way conflict with, or
contradict, the requirements of this part.
(c) Distilled spirits for consumption in
the Commonwealth of Puerto Rico.
Mandatory information may be stated
solely in the Spanish language on labels
of distilled spirits bottled for
consumption within the Commonwealth
of Puerto Rico.
(d) Exception for country of origin
statements. The country of origin
statement for distilled spirits may
appear in a language other than English
when allowed by U.S. Customs and
Border Protection regulations.
§ 5.56
Additional information.
Information (other than mandatory
information) that is truthful, accurate,
and specific, and that does not violate
subpart F, G, or H of this part, may
appear on labels. Such additional
information may not conflict with,
modify, qualify or restrict mandatory
information in any manner.
Subpart E—Mandatory Label
Information
§ 5.61 What constitutes a label for
purposes of mandatory information.
(a) Label. Certain information, as
outlined in § 5 63, must appear on a
label. When used in this part for
purposes of determining where
mandatory information must appear, the
term ‘‘label’’ includes:
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(1) Material affixed to the container,
whether made of paper, plastic film, or
other matter;
(2) For purposes of the net content
statement only, information blown,
embossed, or molded into the container
as part of the process of manufacturing
the container;
(3) Information etched, engraved,
sandblasted, or otherwise carved into
the surface of the container; and
(4) Information branded, stenciled,
painted, printed, or otherwise directly
applied on to the surface of the
container.
(b) Information appearing elsewhere
on the container. Information appearing
on the following parts of the container
is subject to all of the restrictions and
prohibitions set forth in subparts F, G
and H of this part, but will not satisfy
any requirements for mandatory
information that must appear on labels
in this part:
(1) Material affixed to, or information
appearing on, the bottom surface of the
container;
(2) Caps, corks or other closures
unless authorized to bear mandatory
information by the appropriate TTB
officer; and
(3) Foil or heat shrink bottle capsules.
(c) Materials not firmly affixed to the
container. Any materials that
accompany the container to the
consumer but are not firmly affixed to
the container, including booklets,
leaflets, and hang tags, are not ‘‘labels’’
for purposes of this part. Such materials
are instead subject to the advertising
regulations in part 14 of this chapter.
§ 5.62 Packaging (cartons, coverings, and
cases).
(a) General. The term ‘‘packaging’’
includes any covering, carton, case,
carrier, or other packaging of distilled
spirits containers used for sale at retail,
but does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Prohibition. Any packaging of
distilled spirits containers may not
contain any statement, design, device,
or graphic, pictorial, or emblematic
representation that violates the
provisions of subpart F, G, or H of this
part.
(c) Requirements for closed
packaging. If containers are enclosed in
closed packaging, including sealed
opaque coverings, cartons, cases,
carriers, or other packaging used for sale
at retail, such packaging must bear all
mandatory label information required
on the label under § 5.63.
(1) Packaging is considered closed if
the consumer must open, rip, untie,
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unzip, or otherwise manipulate the
package to remove the container in
order to view any of the mandatory
information.
(2) Packaging is not considered closed
if a consumer could view all of the
mandatory information on the container
by merely lifting the container up, or if
the packaging is transparent or designed
in a way that all of the mandatory
information can be easily read by the
consumer without having to open, rip,
untie, unzip, or otherwise manipulate
the package.
(d) Packaging that is not closed. The
following requirements apply to
packaging that is not closed.
(1) The packaging may display any
information that is not in conflict with
the label on the container that is inside
the packaging.
(2) If the packaging displays a brand
name, it must display the brand name
in its entirety. For example, if a brand
name is required to be modified with
additional information on the container,
the packaging must also display the
same modifying language.
(3) If the packaging displays a class or
type designation, it must be identical to
the class or type designation appearing
on the container. For example, if the
packaging displays a class or type
designation for a brandy for which a
truthful and adequate statement of
composition is required on the
container, the packaging must also
include the statement of composition as
well.
(e) Labeling of containers within the
packaging. The container within the
packaging is subject to all labeling
requirements of this part, including
mandatory labeling information
requirements, regardless of whether the
packaging bears such information.
§ 5.63
Mandatory label information.
(a) Mandatory information required to
appear within the same field of vision.
Distilled spirits containers must bear a
label or labels (as defined in § 5.61)
containing the following information
within the same field of vision (which
means a single side of a container (for
a cylindrical container, a side is 40
percent of the circumference) where all
of the pieces of information can be
viewed simultaneously without the
need to turn the container):
(1) Brand name, in accordance with
§ 5.64;
(2) Class, type, or other designation,
in accordance with subpart I of this part;
and
(3) Alcohol content, in accordance
with § 5.65.
(b) Other mandatory information.
Distilled spirits containers must bear a
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label or labels (as defined in § 5.61)
anywhere on the container bearing the
following information:
(1) Name and address of the bottler or
distiller, in accordance with § 5.66, or
the importer, in accordance with § 5.67
or § 5.68, as applicable; and
(2) Net contents (which may be
blown, embossed, or molded into the
container as part of the process of
manufacturing the container), in
accordance with § 5.68.
(c) Disclosure of certain ingredients,
processes and other information. The
following ingredients, processes, and
other information must be disclosed on
a label, without the inclusion of any
additional information as part of the
statement, as follows:
(1) Neutral spirits. The percentage of
neutral spirits and the name of the
commodity from which the neutral
spirits were distilled, or in the case of
continuously distilled neutral spirits or
gin, the name of the commodity only, in
accordance with § 5.70;
(2) Coloring or treatment with wood.
Coloring or treatment with wood, in
accordance with §§ 5.71 and 5.72;
(3) Age. A statement of age or age and
percentage of type, when required or
used, in accordance with § 5.73;
(4) State of distillation. State of
distillation of any type of whisky
defined in § 5.143(c)(2) through (c)(7),
which is distilled in the United States,
in accordance with § 5.66(f);
(5) FD&C Yellow No. 5. If a distilled
spirit contains the coloring material
FD&C Yellow No. 5, the label must
include a statement to that effect, such
as ‘‘FD&C Yellow No. 5’’ or ‘‘Contains
FD&C Yellow No. 5’’;
(6) Cochineal extract or carmine. If a
distilled spirit contains the color
additive cochineal extract or the color
additive carmine, the label must include
a statement to that effect, using the
respective common or usual name (such
as ‘‘contains cochineal extract’’ or
‘‘contains carmine’’). This requirement
applies to labels when either of the
coloring materials was used in a
distilled spirit that is removed from
bottling premises or from customs
custody on or after April 16, 2013;
(7) Sulfites. If a distilled spirit
contains 10 or more parts per million of
sulfur dioxide or other sulfiting agent
measured as total sulfur dioxide, the
label must include a statement to that
effect. Examples of acceptable
statements are ‘‘Contains sulfites’’ or
‘‘Contains (a) sulfiting agent(s)’’ or a
statement identifying the specific
sulfiting agent. The alternative terms
‘‘sulphites’’ or ‘‘sulphiting’’ may be
used; and
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(8) Aspartame. If the distilled spirit
contains aspartame, the label must
include the following statement, in
capital letters, separate and apart from
all other information:
‘‘PHENYLKETONURICS: CONTAINS
PHENYLALANINE.’’
(d) Distinctive liquor bottles. See
§ 5.205(b)(2) for exemption from
placement requirements for certain
mandatory information for distinctive
liquor bottles.
§ 5.64
Brand name.
(a) Requirement. The distilled spirits
label must include a brand name. If the
distilled spirits are not sold under a
brand name, then the name of the
bottler, distiller or importer, as
applicable, appearing in the name and
address statement is treated as the brand
name.
(b) Misleading brand names. Labels
may not include any misleading brand
names. A brand name is misleading if it
creates (by itself or in association with
other printed or graphic matter) any
erroneous impression or inference as to
the age, origin, identity, or other
characteristics of the distilled spirits. A
brand name that would otherwise be
misleading may be qualified with the
word ‘‘brand’’ or with some other
qualification, if the appropriate TTB
officer determines that the qualification
dispels any misleading impression that
might otherwise be created.
§ 5.65
Alcohol content.
(a) General. The alcohol content for
distilled spirits must be stated on the
label as a percentage of alcohol by
volume. Products that contain a
significant amount of material, such as
solid fruit, that may absorb spirits after
bottling must state the alcohol content
at the time of bottling as follows:
‘‘Bottled at ll percent alcohol by
volume.’’
(b) How the alcohol content must be
expressed. The following rules apply to
statements of alcohol content.
(1) A statement of alcohol content
must be expressed as a percentage of
alcohol by volume and not by a range,
or by maximums or minimums.
(i) In addition, the alcohol content in
degrees of proof may be stated on a label
as long as it appears immediately
adjacent to the mandatory statement of
alcohol content as a percentage of
alcohol by volume. Additional
statements of proof may appear on the
label without being immediately
adjacent to the mandatory alcohol by
volume statement.
(ii) Other truthful, accurate, and
specific factual representations of
alcohol content, such as alcohol by
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weight, may be made, as long as they
appear together with, and as part of, the
statement of alcohol content as a
percentage of alcohol by volume.
(2)(i) The alcohol content statement
must be expressed in one of the
following formats:
(A) ‘‘Alcohol ll percent by
volume’’;
(B) ‘‘ll percent alcohol by volume’’;
or
(C) ‘‘Alcohol by volume ll
percent.’’
(ii) Any of the words or symbols may
be enclosed in parentheses and
authorized abbreviations may be used
with or without a period. The alcohol
content statement does not have to
appear with quotation marks.
(3) The statements listed in paragraph
(b)(2)(i) of this section must appear as
shown, except that the following
abbreviations may be used: Alcohol may
be abbreviated as ‘‘alc’’; percent may be
represented by the percent symbol ‘‘%’’;
alcohol and volume may be separated
by a slash ‘‘/’’ in lieu of the word ‘‘by’’;
and volume may be abbreviated as
‘‘vol’’.
(4) Examples. The following are
examples of alcohol content statements
that comply with the requirements of
this part:
(i) ‘‘40% alc/vol’’;
(ii) ‘‘Alc. 40 percent by vol.’’;
(iii) ‘‘Alc 40% by vol’’; and
(iv) ‘‘40% Alcohol by Volume.’’
(c) Tolerances. A tolerance of plus or
minus 0.3 percentage points is allowed
for actual alcohol content that is above
or below the labeled alcohol content.
§ 5.66 Name and address for domestically
bottled distilled spirits that were wholly
made in the United States.
(a) General. Domestically bottled
distilled spirits that were wholly made
in the United States and contain no
imported distilled spirits must be
labeled in accordance with this section.
(See §§ 5.67 and 5.68 for name and
address requirements applicable to
distilled spirits that are not wholly
made in the United States.) For
purposes of this section, a ‘‘processor’’
who solely bottles the labeled distilled
spirits will be considered the ‘‘bottler.’’
(b) Form of statement. The bottler,
distiller, or processor of the distilled
spirits must be identified by a phrase
describing the function performed by
that person. If that person performs
more than one function, the label may
(but is not required to) so indicate.
(1) If the name of the bottler appears
on the label, it must be preceded by a
phrase such as ‘‘bottled by,’’ ‘‘canned
by,’’ ‘‘packed by,’’ or ‘‘filled by,’’
followed by the name and address of the
bottler.
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(2) If the name of the processor
appears on the label, it must be
preceded by a phrase such as ‘‘blended
by,’’ ‘‘made by,’’ ‘‘prepared by,’’
‘‘produced by,’’ or ‘‘manufactured by,’’
as appropriate, followed by the name
and address of the processor. When
applied to distilled spirits, the term
‘‘produced by’’ indicates a processing
operation (formerly known as
rectification) that involves a change in
the class or type of the product through
the addition of flavors or some other
processing activity.
(3) If the name of the distiller appears
on the label, it must be preceded by a
phrase such as ‘‘distilled by,’’ followed
by the name and address of the distiller.
If the distilled spirits were bottled for
the distiller thereof, the name and
address of the distiller may be preceded
by a phrase such as ‘‘distilled by and
bottled for,’’ or ‘‘bottled for.’’
(c) Listing of more than one function.
If different functions are performed by
more than one person, statements on the
label may not create the misleading
impression that the different functions
were performed by the same person.
(d) Form of address—(1) General. The
address consists of the city and State
where the operation occurred, or the
city and State of the principal place of
business of the person performing the
operation. This information must be
consistent with the information on the
basic permit. Addresses may, but are not
required to, include additional
information such as street names,
counties, zip codes, phone numbers,
and website addresses. The postal
abbreviation of the State name may be
used; for example, California may be
abbreviated as CA.
(2) More than one address. If the
bottler, distiller, or processor listed on
the name and address statement is the
actual operator of more than one
distilled spirits plant engaged in
bottling, distilling, or processing
operations, as applicable, the label may
state, immediately following the name
of the permittee, the addresses of those
other plants, in addition to the address
of the plant at which the distilled spirits
were bottled. In this situation, the
address where the operation occurred
must be indicated on the label or on the
container by printing, coding, or other
markings.
(3) Principal place of business. The
label may provide the address of the
bottler’s, distiller’s, or processor’s
principal place of business, in lieu of
the place where the bottling, distilling,
or other operation occurred, provided
that the address where the operation
occurred is indicated on the label or on
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the container by printing, coding, or
other markings.
(4) Distilled spirits bottled for another
person. (i) If distilled spirits are bottled
for another person, other than the actual
distiller thereof, the label may state, in
addition to (but not in place of) the
name and address of the bottler, the
name and address of such other person,
immediately preceded by the words
‘‘bottled for’’ or another similar
appropriate phrase. Such statements
must clearly indicate the relationship
between the two persons (for example,
contract bottling).
(ii) If the same brand of distilled
spirits is bottled by two distillers that
are not under the same ownership, the
label for each distiller may set forth both
locations where bottling takes place, as
long as the label uses the actual location
(and not the principal place of business)
and as long as the nature of the
arrangement is clearly set forth.
(5) No additional places or addresses
may be stated for the same person
unless:
(i) That person is actively engaged in
the conduct of an additional bona fide
and actual alcohol beverage business at
such additional place or address, and
(ii) The label also contains in direct
conjunction therewith, appropriate
descriptive material indicating the
function occurring at such additional
place or address in connection with the
particular product (such as ‘‘distilled
by.’’)
(e) Special rule for straight whiskies.
If ‘‘straight whiskies’’ (see § 5.143) of the
same type are distilled in the same State
by two or more different distillers and
are combined (either at the time of
bottling or at a warehouseman’s bonded
premises for further storage) and
subsequently bottled and labeled as
‘‘straight whisky,’’ that ‘‘straight
whisky’’ must bear a label that contains
name and address information of the
bottler. If that combined ‘‘straight
whisky’’ is bottled by or for the
distillers, in lieu of the name and
address of the bottler, the label may
contain the words ‘‘distilled by,’’
followed immediately by the names (or
trade names) and addresses of the
different distillers who distilled a
portion of the ‘‘straight whisky’’ and the
percentage of ‘‘straight whisky’’ distilled
by each distiller, with a tolerance of
plus or minus 2 percent. If ‘‘straight
whisky’’ consists of a mixture of
‘‘straight whiskies’’ of the same type
from two or more different distilleries of
the same proprietor located within the
same State, and if that ‘‘straight whisky’’
is bottled by or for that proprietor, in
lieu of the name and address of the
bottler, the ‘‘straight whisky’’ may bear
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a label containing the words ‘‘distilled
by’’ followed by the name (or trade
name) of the proprietor and the
addresses of the different distilleries
that distilled a portion of the ‘‘straight
whisky.’’
(f) State of distillation for whisky. (1)
The State of distillation, which is the
State in which original distillation takes
place, must appear on the label of any
type of whisky defined in § 5.143(c)(2)
through (7), which is distilled in the
United States. The State of distillation
may appear on any label and must be
shown in at least one of the following
ways:
(i) By including a ‘‘distilled by’’ (or
‘‘distilled and bottled by’’ or any other
phrase including the word ‘‘distilled’’)
statement as part of the mandatory name
and address statement, followed by a
single location.
(ii) By including the name of the State
in which original distillation occurred
immediately adjacent to the class or
type designation (such as ‘‘Kentucky
bourbon whisky’’), as long as the
product was both distilled and aged in
that State in conformance with the
requirements of § 5.143(b).
(iii) By including a separate
statement, such as ‘‘Distilled in [name of
State].’’
(2) The appropriate TTB officer may
require that the State of distillation or
other information appear on a label of
any whisky subject to the requirements
of paragraph (f)(1) of this section (and
may prescribe placement requirements
for such information), even if that State
appears in the name and address
statement, if such additional
information is necessary to negate any
misleading or deceptive impression that
might otherwise be created as regards
the actual State of distillation.
(3) In the case of ‘‘light whisky,’’ the
State name ‘‘Kentucky’’ or ‘‘Tennessee’’
may not appear on any label, except as
a part of a name and address as
specified in paragraph (a)(1), (2), or (4)
of this section.
(g) Trade or operating names. (1) The
name of the person appearing on the
label may be the trade name or the
operating name, as long as it is identical
to a trade or operating name appearing
on the basic permit. In the case of a
distillation statement for spirits bottled
in bond, the name or trade name under
which the spirits were distilled must be
shown.
(2) A trade name may be used only if
the use of that name would not create
a misleading impression as to the age,
origin, or identity of the product. For
example, if a distiller or bottler of the
spirits authorizes the use of its trade
name by another distiller or bottler that
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is not under the same ownership, that
trade name may not be used on a label
in a way that tends to mislead
consumers as to the identity or location
of the distiller or bottler.
§ 5.67 Name and address for domestically
bottled distilled spirits that were bottled
after importation.
(a) General. This section applies to
distilled spirits that were bottled after
importation. See § 5.68 for name and
address requirements applicable to
imported distilled spirits that were
bottled after importation. See 19 CFR
parts 102 and 134 for U.S. Customs and
Border Protection country of origin
marking requirements.
(b) Distilled spirits bottled after
importation in the United States.
Distilled spirits bottled, without further
blending, making, preparing, producing,
manufacturing, or distilling activities
after importation, must bear one of the
following name and address statements:
(1) The name and address of the
bottler, preceded by the words ‘‘bottled
by,’’ ‘‘canned by,’’ ‘‘packed by,’’ or
‘‘filled by’’;
(2) If the distilled spirits were bottled
for the person responsible for the
importation, the words ‘‘imported by
and bottled (canned, packed, or filled)
in the United States for’’ (or a similar
appropriate phrase) followed by the
name and address of the principal place
of business in the United States of the
person responsible for the importation;
(3) If the distilled spirits were bottled
by the person responsible for the
importation, the words ‘‘imported by
and bottled (canned, packed, or filled)
in the United States by’’ (or a similar
appropriate phrase) followed by the
name and address of the principal place
of business in the United States of the
person responsible for the importation.
(c) Distilled spirits that were subject to
blending or other production activities
after importation. Distilled spirits that,
after importation in bulk, were blended,
made, prepared, produced,
manufactured or further distilled, may
not bear an ‘‘imported by’’ statement on
the label, but must instead be labeled in
accordance with the rules set forth in
§ 5.66 for mandatory and optional
labeling statements.
(d) Optional statements. In addition to
the statements required by paragraph
(a)(1) of this section, the label may also
state the name and address of the
principal place of business of the
foreign producer.
(e) Form of address. (1) The address
consists of the city and State where the
operation occurred, or the city and State
of the principal place of business of the
person performing the operation. This
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information must be consistent with the
information on the basic permit.
Addresses may, but are not required to,
include additional information such as
street names, counties, zip codes, phone
numbers, and website addresses.
(2) If the bottler or processor listed on
the name and address statement is the
actual operator of more than one
distilled spirits plant engaged in
bottling, distilling, or processing
operations, as applicable the label may
state, immediately following the name
of the bottler, the addresses of those
other plants, in addition to the address
of the plant at which the distilled spirits
were bottled. In this situation, the
address where the operation occurred
must be indicated on the label or on the
container by printing, coding, or other
markings.
(3) Principal place of business. The
label may provide the address of the
bottler’s or processor’s principal place
of business, in lieu of the place where
the bottling, distilling, or other
operation occurred, provided that the
address where the operation occurred is
indicated on the label or on the
container by printing, coding, or other
markings.
(f) Trade or operating names. A trade
name may be used if the trade name is
listed on the basic permit or other
qualifying documentation and if its use
on the label would not create any
misleading impression as to the age,
origin, or identity of the product.
§ 5.68 Name and address for distilled
spirits that were imported in a container.
(a) General. This section applies to
distilled spirits that were imported in a
container, as defined in § 5.1. See § 5.67
for name and address requirements
applicable to distilled spirits that were
domestically bottled after importation.
See 19 CFR parts 102 and 134 for U.S.
Customs and Border Protection country
of origin marking requirements.
(b) Mandatory labeling statement.
Distilled spirits imported in containers,
as defined in § 5.1, must bear a label
stating the words ‘‘imported by’’ or a
similar appropriate phrase, followed by
the name and address of the importer.
(1) For purposes of this section, the
importer is the holder of the importer’s
basic permit who either makes the
original Customs entry or is the person
for whom such entry is made, or the
holder of the importer’s basic permit
who is the agent, distributor, or
franchise holder for the particular brand
of imported alcohol beverages and who
places the order abroad.
(2) The address of the importer must
be stated as the city and State of the
principal place of business and must be
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consistent with the address reflected on
the importer’s basic permit. Addresses
may, but are not required to, include
additional information such as street
names, counties, zip codes, phone
numbers, and website addresses. The
postal abbreviation of the State name
may be used; for example, California
may be abbreviated as CA.
(c) Optional statements. In addition to
the statements required by paragraph
(b)(1) of this section, the label may also
state the name and address of the
principal place of business of the
foreign producer.
(d) Form of address. The ‘‘place’’
stated must be the city and State, shown
on the basic permit or other qualifying
document, of the premises at which the
operations took place; and the place for
each operation that is designated on the
label must be shown.
(e) Trade or operating names. A trade
name may be used if the trade name is
listed on the basic permit or other
qualifying documentation and if its use
on the label would not create any
misleading impression as to the age,
origin, or identity of the product.
§ 5.69
Country of origin.
(a) Pursuant to U.S. Customs and
Border Protection (CBP) regulations at
19 CFR parts 102 and 134, a country of
origin statement must appear on the
container of distilled spirits imported in
containers or bottled in the United
States after importation. Labeling
statements with regard to the country of
origin must be consistent with CBP
regulations. The determination of the
country (or countries) of origin, for
imported wines, as well as for blends of
imported distilled spirits with
domestically produced distilled spirits,
must comply with CBP regulations.
(b) It is the responsibility of the
importer or bottler, as appropriate, to
ensure compliance with the country of
origin marking requirement, both when
distilled spirits are imported in
containers and when imported distilled
spirits are subject to bottling, blending,
or production activities in the United
States. Industry members may seek a
ruling from CBP for a determination of
the country of origin for their product.
§ 5.70
Net contents.
The requirements of this section
apply to the net contents statement
required by § 5.63.
(a) General. The volume of spirits in
the container must appear on a label as
a net contents statement. The net
contents for the external container of an
aggregate package must be stated as
specified in § 5.204. The word ‘‘liter’’
may be alternatively spelled ‘‘litre’’ or
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may be abbreviated as ‘‘L’’. The word
‘‘milliliters’’ may be abbreviated as
‘‘ml.,’’ ‘‘mL.,’’ or ‘‘ML.’’ Net contents in
U.S. equivalents and in metric
equivalents such as centiliters may
appear on a label and, if used, must
appear in the same field of vision as the
metric net contents statement.
(b) Tolerances. (1) The following
tolerances are permissible for purposes
of applying paragraph (a) of this section:
(i) Errors in measuring. Discrepancies
due to errors in measuring that occur in
filling conducted in compliance with
good commercial practice;
(ii) Differences in capacity.
Discrepancies due exclusively to
differences in the capacity of containers,
resulting solely from unavoidable
difficulties in manufacturing the
containers so as to be of uniform
capacity, provided that the discrepancy
does not result from a container design
that prevents the manufacture of
containers of an approximately uniform
capacity; and
(iii) Differences in atmospheric
conditions. Discrepancies in measure
due to differences in atmospheric
conditions in various places, including
discrepancies resulting from the
ordinary and customary exposure of
alcohol beverage products in containers
to evaporation, provided that the
discrepancy is determined to be
reasonable on a case by case basis.
(2) Shortages and overages. A
contents shortage in certain of the
containers in a shipment may not be
counted against a contents overage in
other containers in the same shipment
for purposes of determining compliance
with the requirements of this section.
§ 5.71 Neutral spirits and name of
commodity.
(a) In the case of distilled spirits
(other than cordials, liqueurs, flavored
neutral spirits, including flavored
vodka, and distilled spirits specialty
products) manufactured by blending or
other processing, if neutral spirits were
used in the production of the spirits, the
percentage of neutral spirits so used and
the name of the commodity from which
the neutral spirits were distilled must
appear on a label. The statement of
percentage and the name of the
commodity must be in substantially the
following form: ‘‘ll% neutral spirits
distilled from llll (insert grain,
cane products, fruit, or other commodity
as appropriate)’’; or ‘‘ll% neutral
spirits (vodka) distilled from llll
(insert grain, cane products, fruit, or
other commodity as appropriate)’’; or
‘‘ll% (grain) (cane products), (fruit)
neutral spirits’’, or ‘‘ll% grain
spirits.’’
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(b) In the case of gin manufactured by
a process of continuous distillation or in
the case of neutral spirits, a label on the
container must state the name of the
commodity from which the gin or
neutral spirits were distilled. The
statement of the name of the commodity
must appear in substantially the
following form: ‘‘Distilled from grain’’
or ‘‘Distilled from cane products’’.
§ 5.72
Coloring materials.
The words ‘‘artificially colored’’ must
appear on a label of any distilled spirits
product containing synthetic or natural
materials that primarily contribute
color, or when information on a label
conveys the impression that a color was
derived from a source other than the
actual source of the color, except that:
(a) If no coloring material other than
a color exempt from certification under
FDA regulations has been added, a
truthful statement of the source of the
color may appear in lieu of the words
‘‘artificially colored,’’ for example,
‘‘Contains Beta Carotene’’ or ‘‘Colored
with beet extract.’’ See 21 CFR parts 73
and 74 for the list of such colors under
Food and Drug Administration (FDA)
regulations;
(b) If no coloring material has been
added other than one certified as
suitable for use in foods by the FDA, the
words ‘‘(to be filled in with name of)
certified color added’’ or ‘‘Contains
Certified Color’’ may appear in lieu of
the words ‘‘artificially colored’’; and
(c) If no coloring material other than
caramel has been added, the words
‘‘colored with caramel,’’ ‘‘contains
caramel color,’’ or another statement
specifying the use of caramel color, may
appear in lieu of the words ‘‘artificially
colored.’’ However, no statement of any
type is required for the use of caramel
color in brandy, rum, or Tequila, or in
any type of whisky other than straight
whisky if used at not more than 21⁄2
percent by volume of the finished
product.
(d) As provided in § 5.61, the use of
FD&C Yellow No. 5, carmine, or
cochineal extract must be specifically
stated on the label even if the label also
contains a phrase such as ‘‘contains
certified color’’ or ‘‘artificially colored.’’
§ 5.73 Treatment of whisky or brandy with
wood.
The words ‘‘colored and flavored with
wood lll’’ (inserting ‘‘chips,’’
‘‘slabs,’’ etc., as appropriate) must
appear immediately adjacent to, and in
the same size of type as, the class and
type designation under subpart I of this
part for whisky and brandy treated, in
whole or in part, with wood through
percolation or otherwise during
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distillation or storage, other than
through contact with an oak barrel.
However, the statement specified in this
section is not required in the case of
brandy treated with an infusion of oak
chips in accordance with
§ 5.155(b)(3)(B).
§ 5.74 Statements of age, storage, and
percentage.
(a) General. (1) As defined in § 5.1,
age is the length of time during which,
after distillation and before bottling, the
distilled spirits have been stored in oak
barrels in such a manner that chemical
changes take place as a result of direct
contact with the wood. For bourbon
whisky, rye whisky, wheat whisky, malt
whisky, or rye malt whisky, and straight
whiskies other than straight corn
whisky, aging must occur in charred
new oak barrels.
(2) If an age statement is used, it is
permissible to understate the age of a
product, but overstatements of age are
prohibited. However, the age statement
may not conflict with the standard of
identity, if aging is required as part of
the standard of identity. For example,
the standard of identity for straight rye
whisky requires that the whisky be aged
for a minimum of 2 years, so the age
statement ‘‘Aged 1 year,’’ would be
prohibited, even if the spirits were
actually aged for more than 2 years,
because it is inconsistent with the
standard of identity.
(3) If spirits are aged in more than one
oak barrel (for example, if a whisky is
aged 2 years in a new charred oak barrel
and then placed into a second new
charred oak barrel for an additional 6
months,) only the time spent in the first
barrel is counted towards the ‘‘age.’’
(4) The age may be stated in years,
months, or days.
(b) Age statements and percentage of
type statements for whisky. For all
domestic or foreign whiskies that are
aged less than four years, including
blends containing a whisky that is aged
less than four years, an age statement
and percentage of types of whisky
statement is required to appear on a
label, unless the whisky is labeled as
‘‘bottled in bond’’ in conformity with
§ 5.88. For all other whiskies, the
statements are optional, but if used, they
must conform to the formatting
requirements listed below. Moreover, if
the bottler chooses to include a
statement of age or percentage on the
label of a product that is four years old
or more and that contains neutral
spirits, the statement must appear
immediately adjacent to the neutral
spirits statement required by § 5.70. The
following are the allowable formats for
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the age and percentage statements for
whisky:
(1) In the case of whisky, whether or
not mixed or blended but containing no
neutral spirits, the age of the youngest
whisky in the product. The age
statement must appear substantially as
follows: ‘‘ll years old’’;
(2) In the case of whisky containing
neutral spirits, whether or not mixed or
blended, if any straight whisky or other
whisky in the product is less than 4
years old, the percentage by volume of
each such whisky and the age of each
such whisky (the age of the youngest of
the straight whiskies or other whiskies
if the product contains two or more of
either). The age and percentage
statement for a straight whisky and
other whisky must appear immediately
adjacent to the neutral spirits statement
required by § 5.70 and must read
substantially as follows:
(i) If the product contains only one
straight whisky and no other whisky:
‘‘ll percent straight whisky ll years
old;’’
(ii) If the product contains more than
one straight whisky but no other
whisky: ‘‘ll percent straight whiskies
ll years or more old.’’ In this case the
age blank must state the age of the
youngest straight whisky in the product.
However, in lieu of the foregoing
statement, the following statement may
appear on the label: ‘‘ll percent
straight whisky ll years old, ll
percent straight whisky ll years old,
and ll percent straight whisky ll
years old’’;
(iii) If the product contains only one
straight whisky and one other whisky:
‘‘ll percent straight whisky ll years
old, ll percent whisky ll years
old’’; or
(iv) If the product contains more than
one straight whisky and more than one
other whisky: ‘‘ll percent straight
whiskies ll years or more old, ll
percent whiskies ll years or more
old.’’ In this case, the age blanks must
state the age of the youngest straight
whisky and the age of the youngest
other whisky. However, in lieu of the
foregoing statement, the following
statement may appear on the label:
‘‘ll percent straight whisky ll years
old, ll percent straight whisky ll
years old, ll percent whisky ll
years old, and ll percent whisky ll
years old’’;
(3) In the case of an imported rye
whisky, wheat whisky, malt whisky, or
rye malt whisky, a label on the product
must state each age and percentage in
the manner and form that would be
required if the whisky had been made
in the United States;
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(4) In the case of whisky made in the
United States and stored in reused oak
barrels, other than corn whisky, white
whisky, unaged whisky, and light
whisky, in lieu of the words ‘‘ll years
old’’ specified in paragraphs (b)(1) and
(b)(2) of this section, the period of
storage in the reused oak barrels must
appear on the label as follows: ‘‘stored
ll years in reused cooperage;’’
(5) In the case of white whisky that is
not aged, the statement must appear as
follows: ‘‘unaged,’’ ‘‘not aged,’’ or a
similar statement. The designation
‘‘unaged whisky’’ satisfies this
requirement.
(c) Statements of age for rum, brandy,
and agave spirits. A statement of age on
labels of rums, brandies, and agave
spirits is optional, except that, in the
case of brandy (other than immature
brandies, fruit brandies, marc brandy,
pomace brandy, Pisco brandy, and
grappa brandy, which are not
customarily stored in oak barrels) not
stored in oak barrels for a period of at
least two years, a statement of age must
appear on the label. Any statement of
age authorized or required under this
paragraph must appear substantially as
follows: ‘‘ll years old,’’ with the
blank to be filled in with the age of the
youngest distilled spirits in the product.
(d) Statement of storage for grain
spirits. In the case of grain spirits, the
period of storage in oak barrels may
appear on a label immediately adjacent
to the percentage statement required
under § 5.73 of this part, for example:
‘‘ll% grain spirits stored ll years in
oak barrels.’’
(e) Other distilled spirits. (1)
Statements regarding age or maturity or
similar statements or representations on
labels for all other spirits, except neutral
spirits, are permitted only when the
distilled spirits are stored in an oak
barrel and, once dumped from the
barrel, subjected to no treatment besides
mixing with water, filtering, and
bottling. If batches are made from
barrels of spirits of different ages, the
label may only state the age of the
youngest spirits.
(2) Statements regarding age or
maturity or similar statements of neutral
spirits (except for grain spirits as stated
in paragraph (c) of this section) are
prohibited from appearing on any label.
(f) Other age representations. (1) If a
representation that is similar to an age
or maturity statement permitted under
this section appears on a label, a
statement of age, in a manner that is
conspicuous and in characters at least
half the type size of the representation,
must also appear on each label that
carries the representation, except in the
following cases:
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(i) The use of the word ‘‘old’’ or
another word denoting age as part of the
brand name of the product is not
deemed to be an age representation that
requires a statement of age; and
(ii) Labels of whiskies and brandies
(other than immature brandies, pomace
brandy, marc brandy, Pisco brandy, and
grappa brandy) not required to bear a
statement of age, and rum and agave
spirits aged for not less than four years,
may contain general inconspicuous age,
maturity or similar representations
without the label having to bear an age
statement.
(2) Distillation dates (which may be
an exact date or a year) may appear on
a label of spirits where the spirits are
manufactured solely through
distillation. A distillation date may only
appear if an optional or mandatory age
statement is used on the label and must
appear in the same field of vision as the
age statement.
Subpart F—Restricted Labeling
Statements.
§ 5.81
General.
(a) Application. The labeling
practices, statements, and
representations in this subpart may be
used on distilled spirits labels only
when used in compliance with this
subpart. In addition, if any of the
practices, statements, or representations
in this subpart are used elsewhere on
containers or in packaging, they must
comply with the requirements of this
subpart. For purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on distilled spirits containers on
which mandatory information may
appear, as set forth in § 5.61(a), as well
as any other label on the container.
(2) The term ‘‘container’’ includes all
parts of the distilled spirits container,
including any part of a distilled spirits
container on which mandatory
information may appear, as well as
those parts of the container on which
information does not satisfy mandatory
labeling requirements, as set forth in
§ 5.61(b).
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of the practices in this subpart,
the term ‘‘statement or representation’’
includes any statement, design, device,
or representation, and includes pictorial
or graphic designs or representations as
well as written ones. The term
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‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
Food Allergen Labeling
§ 5.82 Voluntary disclosure of major food
allergens.
(a) Definitions. For purposes of this
section, the following terms or phrases
have the meanings indicated.
(1) Major food allergen means any of
the following:
(i) Milk, egg, fish (for example, bass,
flounder, or cod), Crustacean shellfish
(for example, crab, lobster, or shrimp),
tree nuts (for example, almonds, pecans,
or walnuts), wheat, peanuts, and
soybeans; or
(ii) A food ingredient that contains
protein derived from a food specified in
paragraph (a)(1)(i) of this section,
except:
(A) Any highly refined oil derived
from a food specified in paragraph
(a)(1)(i) of this section and any
ingredient derived from such highly
refined oil; or
(B) A food ingredient that is exempt
from major food allergen labeling
requirements pursuant to a petition for
exemption approved by the Food and
Drug Administration (FDA) under 21
U.S.C. 343(w)(6) or pursuant to a notice
submitted to FDA under 21 U.S.C.
343(w)(7), provided that the food
ingredient meets the terms or
conditions, if any, specified for that
exemption.
(2) Name of the food source from
which each major food allergen is
derived. ‘‘Name of the food source from
which each major food allergen is
derived’’ means the name of the food as
listed in paragraph (a)(1)(i) of this
section, except that:
(i) In the case of a tree nut, it means
the name of the specific type of nut (for
example, almonds, pecans, or walnuts);
and
(ii) In the case of Crustacean shellfish,
it means the name of the species of
Crustacean shellfish (for example, crab,
lobster, or shrimp); and
(iii) The names ‘‘egg’’ and ‘‘peanuts,’’
as well as the names of the different
types of tree nuts, may be expressed in
either the singular or plural form, and
the name ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’
may be used instead of ‘‘soybeans.’’
(b) Voluntary labeling standards.
Major food allergens used in the
production of a distilled spirits product
may, on a voluntary basis, be declared
on any label affixed to the container.
However, if any one major food allergen
is voluntarily declared, all major food
allergens used in production of the
distilled spirits product, including
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major food allergens used as fining or
processing agents, must be declared,
except when covered by a petition for
exemption approved by the appropriate
TTB officer under § 5.83. The major
food allergens declaration must consist
of the word ‘‘Contains’’ followed by a
colon and the name of the food source
from which each major food allergen is
derived (for example, ‘‘Contains: egg’’).
§ 5.83 Petitions for exemption from major
food allergen labeling.
(a) Submission of petition. Any
person may petition the appropriate
TTB officer to exempt a particular
product or class of products from the
labeling requirements of § 5.82. The
burden is on the petitioner to provide
scientific evidence (as well as the
analytical method used to produce the
evidence) that demonstrates that the
finished product or class of products, as
derived by the method specified in the
petition, either:
(1) Does not cause an allergic
response that poses a risk to human
health; or
(2) Does not contain allergenic protein
derived from one of the foods identified
in § 5.82(a)(1)(i), even though a major
food allergen was used in production.
(b) Decision on petition. TTB will
approve or deny a petition for
exemption submitted under paragraph
(a) of this section in writing within 180
days of receipt of the petition. If TTB
does not provide a written response to
the petitioner within that 180-day
period, the petition will be deemed
denied, unless an extension of time for
decision is mutually agreed upon by the
appropriate TTB officer and the
petitioner. TTB may confer with the
Food and Drug Administration (FDA) on
petitions for exemption, as appropriate
and as FDA resources permit. TTB may
require the submission of product
samples and other additional
information in support of a petition;
however, unless required by TTB, the
submission of samples or additional
information by the petitioner after
submission of the petition will be
treated as the withdrawal of the initial
petition and the submission of a new
petition. An approval or denial under
this section will constitute final agency
action.
(c) Resubmission of a petition. After a
petition for exemption is denied under
this section, the petitioner may resubmit
the petition along with supporting
materials for reconsideration at any
time. TTB will treat this submission as
a new petition.
(d) Availability of information—(1)
General. TTB will promptly post to its
website (https://www.ttb.gov) all
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petitions received under this section, as
well as TTB’s responses to those
petitions. Any information submitted in
support of the petition that is not posted
to the TTB website will be available to
the public pursuant to the Freedom of
Information Act, at 5 U.S.C. 552, except
where a request for confidential
treatment is granted under paragraph
(d)(2) of this section.
(2) Requests for confidential treatment
of business information. A person who
provides trade secrets or other
commercial or financial information in
connection with a petition for
exemption under this section may
request that TTB give confidential
treatment to that information. A failure
to request confidential treatment at the
time the information in question is
submitted to TTB will constitute a
waiver of confidential treatment. A
request for confidential treatment of
information under this section must
conform to the following standards:
(i) The request must be in writing;
(ii) The request must clearly identify
the information to be kept confidential;
(iii) The request must relate to
information that constitutes trade
secrets or other confidential commercial
or financial information regarding the
business transactions of an interested
person, the disclosure of which would
cause substantial harm to the
competitive position of that person;
(iv) The request must set forth the
reasons why the information should not
be disclosed, including the reasons why
the disclosure of the information would
prejudice the competitive position of
the interested person; and
(v) The request must be supported by
a signed statement by the interested
person, or by an authorized officer or
employee of that person, certifying that
the information in question is a trade
secret or other confidential commercial
or financial information and that the
information is not already in the public
domain.
Production Claims
§ 5.84
Use of the term ‘‘organic.’’
Use of the term ‘‘organic’’ is permitted
if any such use complies with United
States Department of Agriculture
(USDA) National Organic Program rules
(7 CFR part 205), as interpreted by the
USDA.
§ 5.85 Environmental, sustainability, and
similar statements.
Statements related to environmental
or sustainable agricultural practices,
social justice principles, and other
similar statements (such as, ‘‘Produced
using 100% solar energy’’ or ‘‘Carbon
Neutral’’) may appear as long as the
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statements are truthful, specific and not
misleading. Statements or logos
indicating environmental, sustainable
agricultural, or social justice
certification (such as, ‘‘Biodyvin,’’
‘‘Salmon-Safe,’’ or ‘‘Fair Trade
Certified’’) may appear on distilled
spirits that are actually certified by the
appropriate organization.
§ 5.86
[Reserved]
Other Label Terms
§ 5.87
‘‘Barrel Proof’’ and similar terms.
(a) The term ‘‘barrel proof’’ or ‘‘cask
strength’’ may be used to refer to
distilled spirits stored in wood barrels
only when the bottling proof is not more
than two degrees lower than the proof
of the spirits when the spirits are
dumped from the barrels.
(b) The term ‘‘original proof,’’
‘‘original barrel proof,’’ ‘‘original cask
strength,’’ or ‘‘entry proof’’ may be used
only if the distilled spirits were stored
in wooden barrels and the proof of the
spirits entered into the barrel and the
proof of the bottled spirits are the same.
§ 5.88
Bottled in bond.
(a) The term ‘‘bond,’’ ‘‘bonded,’’
‘‘bottled in bond,’’ or ‘‘aged in bond,’’ or
phrases containing these or synonymous
terms, may be used (including as part of
the brand name) only if the distilled
spirits are:
(1) Composed of the same kind (type,
if one is applicable to the spirits,
otherwise class) of spirits distilled from
the same class of materials;
(2) Distilled in the same distilling
season (as defined in § 5.1) by the same
distiller at the same distillery.
(3) Stored for at least four years in
wooden barrels wherein the spirits have
been in contact with the wood surface,
except for gin and vodka, which must be
stored for at least four years in wooden
barrels coated or lined with paraffin or
other substance which will preclude
contact of the spirits with the wood
surface;
(4) Unaltered from their original
condition or character by the addition or
subtraction of any substance other than
by filtration, chill proofing, or other
physical treatments (which do not
involve the addition of any substance
which will remain in the finished
product or result in a change in class or
type);
(5) Reduced in proof by the addition
of only pure water to 50 percent alcohol
by volume (100 degrees of proof); and
(6) Bottled at 50 percent alcohol by
volume (100 degrees of proof).
(b) Imported spirits labeled as
‘‘bottled in bond’’ or other synonymous
term described above must be
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manufactured in accordance with
paragraphs (a)(1) through (6) of this
section and may only be so labeled if
the laws and regulations of the country
in which the spirits are manufactured
authorize the bottling of spirits in bond
and require or specifically authorize
such spirits to be so labeled. The
‘‘bottled in bond’’ or synonymous
statement must be immediately
followed, in the same font and type size,
by the name of the country under whose
laws and regulations such distilled
spirits were so bottled.
(c) Domestically manufactured spirits
labeled as ‘‘bottled in bond’’ or with
some other synonymous statement must
bear the real name of the distillery or
the trade name under which the distiller
distilled and warehoused the spirits,
and the number of the distilled spirits
plant in which distilled, and the
number of the distilled spirits plant in
which bottled. The label may also bear
the name or trade name of the bottler.
§ 5.89
Multiple distillation claims.
(a) Truthful statements about the
number of distillations, such as ‘‘double
distilled,’’ ‘‘distilled three times,’’ or
similar terms to convey multiple
distillations, may be used; except that
only additional distillations beyond
those required to meet the product’s
production standards may be counted as
additional distillations. For example, if
in order to meet the production
standards for vodka (which requires the
spirits reach an alcohol content level of
at least 95 percent), a particular product
must be distilled three times, and then
the vodka is distilled two more times,
that vodka could be labeled as ‘‘triple
distilled.’’ For the purposes of this
section only, the term ‘‘distillation’’
means a single run through a pot still or
a single run through a column of a
column (reflux) still. For example, if a
column still has three separate columns,
one complete additional run through the
system would constitute three
additional distillations.
(b) The number of distillations may be
understated but may not be overstated.
§ 5.90
Terms related to Scotland.
(a) The words ‘‘Scotch,’’ ‘‘Scots,’’
‘‘Highland,’’ or ‘‘Highlands,’’ and
similar words connoting, indicating, or
commonly associated with Scotland,
may only be used to designate distilled
spirits wholly manufactured in
Scotland, except that the term ‘‘Scotch
whisky’’ may appear in the designation
for a flavored spirit (‘‘Flavored Scotch
Whisky’’) or in a truthful statement of
composition (‘‘Scotch whisky with
natural flavors’’) where the base
distilled spirit meets the requirements
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for a Scotch whisky designation,
regardless of where the finished product
is manufactured.
(b) In accordance with § 5.127,
statements relating to government
supervision may appear on Scotch
whisky containers only if such labeling
statements are required or specifically
authorized by the applicable regulations
of the United Kingdom.
§ 5.91
Use of the term ‘‘pure.’’
Distilled spirits labels, containers, or
packaging may not bear the word
‘‘pure’’ unless it:
(a) Refers to a particular ingredient
used in the production of the distilled
spirits, and is a truthful representation
about that ingredient;
(b) Is part of the bona fide name of a
permittee or retailer for which the
distilled spirits are bottled; or
(c) Is part of the bona fide name of the
permittee that bottled the distilled
spirits.
Subpart G—Prohibited Labeling
Practices
§ 5.101
General.
(a) Application. The prohibitions set
forth in this subpart apply to any
distilled spirits label, container, or
packaging. For purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on distilled spirits containers on
which mandatory information may
appear, as set forth in § 5.61(a), as well
as any other label on the container;
(2) The term ‘‘container’’ includes all
parts of the distilled spirits container,
including any part of a distilled spirits
container on which mandatory
information may appear, as well as
those parts of the container on which
information does not satisfy mandatory
labeling requirements, as set forth in
§ 5.61(b); and
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of the prohibited practices in
this subpart, the term ‘‘statement or
representation’’ includes any statement,
design, device, or representation, and
includes pictorial or graphic designs or
representations as well as written ones.
The term ‘‘statement or representation’’
includes explicit and implicit
statements and representations.
§ 5.102
False or untrue statements.
Distilled spirits labels, containers, or
packaging may not contain any
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statement or representation that is false
or untrue in any particular.
§ 5.103
Obscene or indecent depictions.
Distilled spirits labels, containers, or
packaging may not contain any
statement, design, device, picture, or
representation that is obscene or
indecent.
Subpart H—Labeling Practices That
Are Prohibited If They Are Misleading
§ 5.121
General.
(a) Application. The labeling practices
that are prohibited if misleading set
forth in this subpart apply to any
distilled spirits label, container, or
packaging. For purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on distilled spirits containers on
which mandatory information may
appear, as set forth in § 5.61(a), as well
as any other label on the container;
(2) The term ‘‘container’’ includes all
parts of the distilled spirits container,
including any part of a distilled spirits
container on which mandatory
information may appear, as well as
those parts of the container on which
information does not satisfy mandatory
labeling requirements, as set forth in
§ 5.61(b); and
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of this subpart, the term
‘‘statement or representation’’ includes
any statement, design, device, or
representation, and includes pictorial or
graphic designs or representations as
well as written ones. The term
‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
§ 5.122 Misleading statements or
representations.
(a) General prohibition. Distilled
spirits labels, containers, or packaging
may not contain any statement or
representation, irrespective of falsity,
that is misleading to consumers as to the
age, origin, identity, or other
characteristics of the distilled spirits, or
with regard to any other material factor.
(b) Ways in which statements or
representations may be misleading. (1)
A statement or representation is
prohibited, irrespective of falsity, if it
directly creates a misleading
impression, or if it does so indirectly
through ambiguity, omission, inference,
or by the addition of irrelevant,
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scientific, or technical matter. For
example, an otherwise truthful
statement may be misleading because of
the omission of material information,
the disclosure of which is necessary to
prevent the statement from being
misleading.
(2) As set forth in § 5.212(b), all
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Any claim on distilled spirits labels,
containers, or packaging that does not
have a reasonable basis in fact, or
cannot be adequately substantiated
upon the request of the appropriate TTB
officer, is considered misleading.
§ 5.123
Guarantees.
Distilled spirits labels, containers, or
packaging may not contain any
statement relating to guarantees if the
appropriate TTB officer finds it is likely
to mislead the consumer. However,
money-back guarantees are not
prohibited.
§ 5.124
Disparaging statements.
(a) General. Distilled spirits labels,
containers, or packaging may not
contain any false or misleading
statement that explicitly or implicitly
disparages a competitor’s product.
(b) Examples. (1) An example of an
explicit statement that falsely disparages
a competitor’s product is ‘‘Brand X is
not aged in oak barrels,’’ when such
statement is not true.
(2) An example of an implicit
statement that disparages competitors’
products in a misleading fashion is ‘‘We
do not add arsenic to our distilled
spirits,’’ when such a claim may lead
consumers to falsely believe that other
distillers do add arsenic to their
distilled spirits.
(c) Truthful and accurate
comparisons. This section does not
prevent truthful and accurate
comparisons between products (such as,
‘‘Our liqueur contains more strawberries
than Brand X’’) or statements of opinion
(such as, ‘‘We think our rum tastes
better than any other distilled spirits on
the market’’).
§ 5.125
Tests or analyses.
Distilled spirits labels, containers, or
packaging may not contain any
statement or representation of or
relating to analyses, standards, or tests,
whether or not it is true, that is likely
to mislead the consumer. An example of
such a misleading statement is ‘‘tested
and approved by our research
laboratories’’ if the testing and approval
does not in fact have any significance.
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§ 5.126 Depictions of government
symbols.
(a) Representations of the armed
forces and flags. Distilled spirits labels,
containers, or packaging may not show
an image of any government’s flag or
any representation related to the armed
forces of the United States if the
representation, standing alone or
considered together with any additional
language or symbols on the label,
creates a false or misleading impression
that the product was endorsed by, made
by, used by, or made under the
supervision of, the government
represented by that flag or the armed
forces of the United States. This section
does not prohibit the use of a flag as part
of a claim of American origin or another
country of origin.
(b) Government seals. Distilled spirits
labels, containers, or packaging may not
contain any government seal or other
insignia that is likely to create a false or
misleading impression that the product
has been endorsed by, made by, used
by, or made for, or under the
supervision of, or in accordance with
the specification of, that government.
Seals required or specifically authorized
by applicable law or regulations and
used in accordance with such law or
regulations are not prohibited.
§ 5.127 Depictions simulating government
stamps or relating to supervision.
Distilled spirits labels, containers, or
packaging may not contain any
statements, images, and designs that
mislead consumers to believe that the
distilled spirits are manufactured or
processed under government authority.
Distilled spirits labels, containers, or
packaging may not contain images or
designs resembling a stamp of the U.S.
Government or any State or foreign
government, other than stamps
authorized or required by this or any
other government, and may not contain
statements or indications that the
distilled spirits are distilled, blended,
bottled, packed or sold under, or in
accordance with, any municipal, State,
Federal, or foreign authorization, law, or
regulations, unless such statement is
required or specifically authorized by
applicable law or regulation. If a
municipal, State, or Federal
Government permit number is stated on
distilled spirits labels, containers, or
packaging, it may not be accompanied
by any additional statement relating to
that permit number.
§ 5.128 Claims related to wine or malt
beverages.
(a) General. Except as provided in
paragraph (b) of this section, no label,
carton, case, or any other packaging
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material may contain a statement,
design, or representation that tends to
create a false or misleading impression
that the distilled spirits product is a
wine or malt beverage product, or that
it contains wine or malt beverages. For
example, the use of the name of a class
or type designation of a wine or malt
beverage product, as set forth in parts 4
or 7 of this chapter, is prohibited, if the
use of that name creates a misleading
impression as to the identity of the
product. Homophones or coined words
that simulate or imitate a class or type
designation are also prohibited.
(b) Exceptions. This section does not
prohibit:
(1) A truthful and accurate statement
of alcohol content;
(2) The use of a brand name of a wine
or malt beverage product as a distilled
spirits product brand name, provided
that the overall label does not create a
misleading impression as to the identity
of the product;
(3) The use of a wine or malt beverage
cocktail name as a brand name or a
distinctive or fanciful name of a
distilled spirits product, provided that a
statement of composition, in accordance
with § 5.166, appears in the same field
of vision as the brand name or the
distinctive or fanciful name and the
overall label does not create a
misleading impression about the
identity of the product;
(4) The use of truthful and accurate
statements about the production of the
distilled spirits product, as part of a
statement of composition or otherwise,
such as ‘‘flavored with chardonnay
grapes,’’ so long as such statements do
not create a misleading impression as to
the identity of the product; or
(5) The use of terms that simply
compare distilled spirits products to
wine or malt beverages without creating
a misleading impression as to the
identity of the product.
§ 5.129
Health-related statements.
(a) Definitions. When used in this
section, the following terms have the
meaning indicated:
(1) Health-related statement means
any statement related to health (other
than the warning statement required
under part 16 of this chapter) and
includes statements of a curative or
therapeutic nature that, expressly or by
implication, suggest a relationship
between the consumption of alcohol,
distilled spirits, or any substance found
within the distilled spirits product, and
health benefits or effects on health. The
term includes both specific health
claims and general references to alleged
health benefits or effects on health
associated with the consumption of
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alcohol, distilled spirits, or any
substance found within the distilled
spirits, as well as health-related
directional statements. The term also
includes statements and claims that
imply that a physical or psychological
sensation results from consuming the
distilled spirits, as well as statements
and claims of nutritional value (for
example, statements of vitamin content).
(2) Specific health claim means a type
of health-related statement that,
expressly or by implication,
characterizes the relationship of
distilled spirits, alcohol, or any
substance found within the distilled
spirits, to a disease or health-related
condition. Implied specific health
claims include statements, symbols,
vignettes, or other forms of
communication that suggest, within the
context in which they are presented,
that a relationship exists between
alcohol, distilled spirits, or any
substance found within the distilled
spirits, and a disease or health-related
condition.
(3) Health-related directional
statement means a type of health-related
statement that directs or refers
consumers to a third party or other
source for information regarding the
effects on health of distilled spirits or
alcohol consumption.
(b) Rules for labeling—(1) Healthrelated statements. In general, distilled
spirits may not contain any healthrelated statement that is untrue in any
particular or tends to create a
misleading impression as to the effects
on health of alcohol consumption. TTB
will evaluate such statements on a caseby-case basis and may require as part of
the health-related statement a
disclaimer or some other qualifying
statement to dispel any misleading
impression conveyed by the healthrelated statement.
(2) Specific health claims. (i) TTB will
consult with the Food and Drug
Administration (FDA), as needed, on the
use of a specific health claim on the
distilled spirits. If FDA determines that
the use of such a labeling claim is a drug
claim that is not in compliance with the
requirements of the Federal Food, Drug,
and Cosmetic Act, TTB will not approve
the use of that specific health claim on
the distilled spirits.
(ii) TTB will approve the use of a
specific health claim on a distilled
spirits label only if the claim is truthful
and adequately substantiated by
scientific or medical evidence; is
sufficiently detailed and qualified with
respect to the categories of individuals
to whom the claim applies; adequately
discloses the health risks associated
with both moderate and heavier levels
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of alcohol consumption; and outlines
the categories of individuals for whom
any levels of alcohol consumption may
cause health risks. This information
must appear as part of the specific
health claim.
(3) Health-related directional
statements. A health-related directional
statement is presumed misleading
unless it:
(i) Directs consumers in a neutral or
other non-misleading manner to a third
party or other source for balanced
information regarding the effects on
health of distilled spirits or alcohol
consumption; and
(ii)(A) Includes as part of the healthrelated directional statement the
following disclaimer: ‘‘This statement
should not encourage you to drink or to
increase your alcohol consumption for
health reasons;’’ or
(B) Includes as part of the healthrelated directional statement some other
qualifying statement that the
appropriate TTB officer finds is
sufficient to dispel any misleading
impression conveyed by the healthrelated directional statement.
§ 5.130
Appearance of endorsement.
(a) General. Distilled spirits labels,
containers, or packaging may not
include the name, or the simulation or
abbreviation of the name, of any living
individual of public prominence, or an
existing private or public organization,
or any graphic, pictorial, or emblematic
representation of the individual or
organization, if its use is likely to lead
a consumer to falsely believe that the
product has been endorsed, made, or
used by, or produced for, or under the
supervision of, or in accordance with
the specifications of, such individual or
organization. This section does not
prohibit the use of such names where
the individual or organization has
provided authorization for their use.
(b) Documentation. The appropriate
TTB officer may request documentation
from the bottler or importer to establish
that the person or organization has
provided authorization to use the name
of that person or organization.
(c) Disclaimers. Statements or other
representations do not violate this
section if, taken as a whole, they create
no misleading impression as to an
implied endorsement either because of
the context in which they are presented
or because of the use of an adequate
disclaimer.
Subpart I—Standards of Identity for
Distilled Spirits
§ 5.141 The standards of identity in
general.
(a) General. Distilled spirits are
divided, for labeling purposes, into
classes, which are further divided into
specific types. As set forth in § 5.63, a
distilled spirits product label must bear
the appropriate class, type or other
designation. The standards that define
the classes and types are known as the
‘‘standards of identity.’’ The classes and
types of distilled spirits set forth in this
subpart apply only to distilled spirits for
beverage or other nonindustrial
purposes.
(b) Rules. (1) Unless otherwise
specified, when a standard of identity
states that a mash is of a particular
ingredient (such as ‘‘fermented mash of
grain’’), the mash must be made entirely
of that ingredient without the addition
of other fermentable ingredients.
(2) Where an intermediate product is
used to manufacture a distilled spirits
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product, the components of that
intermediate product are considered as
being directly added to the finished
product for purposes of determining the
class or type of the finished product and
for any applicable limitations or
statements of composition.
(3) Some distilled spirits products
may conform to the standards of
identity of more than one class. Such
products may be designated with any
class designation defined in this subpart
to which the products conform.
(c) Designating with both class and
type. If a product is designated with
both the class and the type, the class
and type must be in the same type size
and in the same field of vision.
(d) Words in a designation. All words
in a designation must be in the same
type size and must appear together.
§ 5.142
Neutral spirits or alcohol.
(a) The class neutral spirits. ‘‘Neutral
spirits’’ or ‘‘alcohol’’ are distilled spirits
distilled from any suitable material at or
above 95 percent alcohol by volume
(190° proof), and, if bottled, bottled at
not less than 40 percent alcohol by
volume (80° proof). The source material
may, but need not, appear in the class
designation (for example, ‘‘Apple
Neutral Spirits’’ or ‘‘Grain Neutral
Spirits’’). Neutral spirits other than the
type ‘‘grain spirits’’ may be designated
as ‘‘neutral spirits’’ or ‘‘alcohol’’ on a
label. Neutral spirits other than the type
‘‘grain spirits’’ that are stored in wood
barrels may not be aged in wood barrels
at any time.
(b) Types. The following chart lists
the types of neutral spirits and the rules
that apply to the type designation.
Type designation
Standards
(1) Vodka ..............................
Neutral spirits so distilled, or so treated after distillation with charcoal or other materials, as to be without distinctive character, aroma, taste, or color. Vodka may not be aged or stored in wood barrels at any time except
when labeled as bottled in bond pursuant to § 5.68. Vodka treated and filtered with not less than one ounce of
activated carbon or activated charcoal per 100 wine gallons of spirits may be labeled as ‘‘charcoal filtered.’’
Vodka may contain up to two grams per liter of sugar and up to one gram per liter of citric acid. Addition of any
other flavoring or blending materials changes the classification to flavored vodka or to a distilled spirits specialty product, as appropriate. Vodka must be designated on the label as ‘‘neutral spirits,’’ ‘‘alcohol,’’ or
‘‘vodka’’.
Neutral spirits distilled from a fermented mash of grain and stored in oak barrels. ‘‘Grain spirits’’ must be designated as such on the label. Grain spirits may not be designated as ‘‘neutral spirits’’ or ‘‘alcohol’’ on the label.
(2) Grain spirits ....................
§ 5.143
Whisky.
(a) The class whisky. ‘‘Whisky’’ or
‘‘whiskey’’ is distilled spirits that is an
alcoholic distillate from a fermented
mash of any grain distilled at less than
95 percent alcohol by volume (190°
proof) having the taste, aroma, and
characteristics generally attributed to
whisky, stored in oak barrels (except
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that corn whisky, white whisky, and
unaged whisky need not be so stored),
and bottled at not less than 40 percent
alcohol by volume (80° proof), and also
includes mixtures of such distillates for
which no specific standards of identity
are prescribed.
(b) Label designations. The word
whisky may be spelled as either
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‘‘whisky’’ or ‘‘whiskey’’. Whisky
conforming to one of the types of
whisky defined in paragraph (c) of this
section must be designated as that type
on the label, except that whisky
distilled in Tennessee may be called
‘‘Tennessee Whisky’’ even if it conforms
to one of the specific type designations.
The place, state, or region where the
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whisky was distilled may appear as part
of the designation on the label if the
distillation and any required aging took
place in that location; blending and
bottling need not have taken place in
the same place, state, or region (e.g.,
‘‘New York Bourbon Whisky’’ must be
distilled and aged in the State of New
York). However, if any whisky is made
partially from whisky distilled in a
country other than that indicated by the
type designation, the label must indicate
the percentage of such whisky and the
country where that whisky was
distilled. Additionally, the label of
whisky that does not meet one of the
standards for specific types of whisky
and that is comprised of components
distilled in more than one country must
contain a statement of composition
indicating the country of origin of each
component (such as ‘‘Whisky—50%
from Japan, 50% from the United
States’’). The word ‘‘bourbon’’ may not
be used to describe any whisky or
whisky-based distilled spirits not
distilled and aged in the United States.
The whiskies defined in paragraphs
(c)(2) through (6) and (10) through (14)
of this section are distinctive products
of the United States and must have the
country of origin stated immediately
adjacent to the type designation if it is
distilled outside of the United States, or
the whisky designation must be
proceeded by the term ‘‘American type’’
if the country of origin appears
elsewhere on the label. For example,
‘‘Brazilian Corn Whisky,’’ ‘‘Rye Whisky
distilled in Sweden,’’ and ‘‘Blended
Whisky—Product of Japan’’ are
statements that meet this country of
origin requirement. ‘‘Light whisky’’ and
‘‘Blended light whisky’’ may only be
produced in the United States.
(c) Types of whisky. The following
tables set out the designations for
whisky. Table 1 sets forth the standards
for whisky that are defined based on
production, storage, and processing
standards, while Table 2 sets forth rules
for the types of whisky that are defined
as distinctive products of certain
countries. For the whiskies listed in
Table 1, a whisky may use the
designation listed, when it complies
with the production standards in the
subsequent columns. The ‘‘source’’
column indicates the source of the grain
mash used to make the whisky. The
‘‘distillation proof’’ indicates the
allowable distillation proof for that type.
The ‘‘storage’’ column indicates the type
of packages (barrels) in which the spirits
must be stored and limits for the proof
of the spirits when entering the
packages. The ‘‘neutral spirits
permitted’’ column indicates whether
neutral spirits may be used in the
product in their original state (and not
as vehicles for flavoring materials), and
if so, how much may be used. The
‘‘harmless coloring, flavoring, blending
materials permitted’’ column indicates
whether harmless coloring, flavoring, or
blending materials, other than neutral
spirits in their original form, described
in § 5.142, may be used in the product.
The use of the word ‘‘straight’’ is a
further designation of a type, and is
optional. The designation ‘‘white
whisky’’ may only appear on whiskies
that are clear in color and that meet the
rules in paragraph (b)(15) of this section.
TABLE 1 TO PARAGRAPH (c): TYPES OF WHISKY AND PRODUCTION, STORAGE, AND PROCESSING STANDARDS
Type
Source
Distillation proof
Storage
Neutral spirits
permitted
Allowable coloring,
flavoring, blending
materials permitted
(1) Whisky, which may
Fermented grain mash
be used as the designation if the whisky
does not meet one of
the type designations.
(2) Bourbon Whisky,
Fermented mash of
Rye Whisky, Wheat
not less than 51%,
Whisky, Malt Whisky,
respectively: Corn,
Rye Malt Whisky, or
Rye, Wheat, Malted
[name of other grain]
Barley, Malted Rye
Whisky.
Grain [Other grain].
(3) Corn Whisky.
Fermented mash of
(Whisky conforming
not less than 80%
to this standard must
corn.
be designated as
‘‘corn whisky.’’).
Less than 190° ...
Oak barrels with no
minimum time requirement.
No ...............................
Yes.
160° or less ........
Charred new oak barrels at 125° or less.
No ...............................
Yes, except for bourbon whisky.
160° or less ........
No ...............................
Yes.
(4) Straight Whisky ......
Fermented mash of
less than 51% corn,
rye, wheat, malted
barley, or malted rye
grain. (Includes mixtures of straight
whiskies made in
the same state.).
Fermented mash of
not less than 51%,
respectively: Corn,
Rye, Wheat, Malted
Barley, Malted Rye
Grain.
1600 or less ........
Required only if age is
claimed on the
label. If stored, must
be stored at 125° or
less in used or
uncharred new oak
barrels.
Charred new oak barrels at 1250 or less
for a minimum of
two years.
No ...............................
No.
160° or less ........
Charred new oak barrels at 125° or less
for a minimum of
two years.
No ...............................
No.
Fermented mash of
not less than 80%
corn.
160° or less ........
125° or less in used or
uncharred new oak
barrels for a minimum of 2 years.
No ...............................
No.
(5) Straight Bourbon
Whisky, Straight Rye
Whisky, Straight
Wheat Whisky,
Straight Malt Whisky,
or Straight Rye Malt
Whisky.
(6) Straight Corn Whisky.
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TABLE 1 TO PARAGRAPH (c): TYPES OF WHISKY AND PRODUCTION, STORAGE, AND PROCESSING STANDARDS—Continued
Allowable coloring,
flavoring, blending
materials permitted
Type
Source
Distillation proof
Storage
Neutral spirits
permitted
(7) Whisky distilled
from Bourbon/Rye/
Wheat/Malt/Rye Malt/
[Name of other grain]
mash.
Fermented mash of
not less than 51%,
respectively: Corn,
Rye, Wheat, Malted
Barley, Malted Rye
Grain [Other grain].
Fermented grain mash
160° or less ........
Used oak barrels ........
No ...............................
Yes.
More than 160° ..
No ...............................
Yes.
Fermented grain mash
but mixed with less
than 20% Straight
Whisky on a proof
gallon basis.
At least 20% Straight
Whisky on a proof
gallon basis plus
Whisky or Neutral
Spirits alone or in
combination.
At least 51% on a
proof gallon basis
of: Straight Bourbon,
Rye, Wheat, Malt,
Rye Malt, or Corn
Whisky; the rest
comprised of Whisky or Neutral Spirits
alone or in combination.
Mixture of Straight
Whiskies that does
not conform to
‘‘Straight Whisky’’.
Mixture of Straight
Whiskies of the
same named type
produced in different
states or produced
in the same state
but contains flavoring material.
Blend ..................
Used or uncharred
new oak barrels.
Used or uncharred
new oak barrels.
No ...............................
Yes.
160° or less ........
Will contain a blend of Maximum of 80% on a
spirits, some stored
proof gallon basis.
and some not stored.
Yes.
Blend ..................
Will contain a blend of Maximum of 49% on a
spirits, some stored
proof gallon basis.
and some not stored.
Yes.
160° or less ........
Will contain a blend of
spirits which were
aged at least two
years.
Will contain a blend of
spirits which were
aged at least two
years.
No, except as part of
a flavor.
Yes.
No, except as part of
a flavor.
Yes.
Mixture of Neutral
Spirits and 5% or
more on a proof gallon basis of: Whisky
or Straight Whisky
or a combination of
both. The Straight
Whisky component
must be less than
20% on a proof gallon basis.
Fermented grain
mash. When the
mash is made up of
at least 51% of a
single type of grain,
the product may be
further designated
as White [Name of
grain] Whisky or
Unaged [Name of
grain] Whisky.
Blend ..................
Will contain a blend of Maximum of 95% on a
spirits, some stored
proof gallon basis.
and some not stored.
Yes.
Less than 190° ...
Storage is not required
for ‘‘white whisky’’
and is prohibited for
‘‘unaged whisky.’’ If
white whisky is
stored, oak barrels,
with no minimum
time requirement,
and filtered after
storage to remove
color.
Yes.
(8) Light Whisky ...........
(9) Blended Light Whisky (Light Whisky—a
blend).
(10) Blended Whisky
(Whisky—a blend).
(11) Blended Bourbon
Whisky, Blended Rye
Whisky, Blended
Wheat Whisky,
Blended Malt Whisky, Blended Rye Malt
Whisky, Blended
Corn Whisky (or ll
Whisky—a blend).
(12) Blend of Straight
Whiskies (Blended
Straight Whiskies).
(13) Blended Straight
Bourbon Whisky,
Blended Straight Rye
Whisky, Blended
Straight Malt Whisky,
Blended Straight Rye
Malt Whisky, Blended Straight Corn
Whisky.
(14) Spirit Whisky ........
(15) White Whisky or
Unaged Whisky
(Unaged whisky may
only be used as a
designation if the
whisky is not aged.).
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TABLE 2 TO PARAGRAPH (C): TYPES OF WHISKY THAT ARE DISTINCTIVE PRODUCTS
(16) Scotch whisky ......................
(17) Irish whisky ..........................
(18) Canadian whisky ..................
§ 5.144
Whisky which is a distinctive product of Scotland, manufactured in Scotland in compliance with the laws of the United Kingdom
regulating the manufacture of Scotch whisky for consumption in the United Kingdom: Provided, That if such product is a mixture
of whiskies, such mixture is ‘‘blended Scotch whisky’’ or ‘‘Scotch whisky—a blend’’.
Whisky which is a distinctive product of Ireland, manufactured either in the Republic of Ireland or in Northern Ireland, in compliance with their laws regulating the manufacture of Irish whisky for home consumption: Provided, That if such product is a mixture of whiskies, such mixture is ‘‘blended Irish whisky’’ or ‘‘Irish whisky—a blend’’.
Whisky which is a distinctive product of Canada, manufactured in Canada in compliance with the laws of Canada regulating the
manufacture of Canadian whisky for consumption in Canada: Provided, That if such product is a mixture of whiskies, such mixture is ‘‘blended Canadian whisky’’ or ‘‘Canadian whisky—a blend’’.
Gin.
(a) The class gin. ‘‘Gin’’ is distilled
spirits made by original distillation from
mash, or by redistillation of distilled
spirits, or by mixing neutral spirits, with
or over juniper berries and, optionally,
with or over other aromatics, or with or
over extracts derived from infusions,
percolations, or maceration of such
materials, and includes mixtures of gin
and neutral spirits. It must derive its
main characteristic flavor from juniper
berries and be bottled at not less than 40
percent alcohol by volume (80° proof).
Gin may be aged in oak containers.
(b) Distilled gin. Gin made exclusively
by original distillation or by
redistillation may be further designated
as ‘‘distilled,’’ ‘‘Dry,’’ ‘‘London,’’ ‘‘Old
Tom’’ or some combination of these four
terms.
§ 5.145
Brandy.
(a) The class brandy. ‘‘Brandy’’ is
spirits that are distilled from the
fermented juice, mash, or wine of fruit,
or from the residue thereof, distilled at
less than 95 percent alcohol by volume
(190° proof) having the taste, aroma, and
characteristics generally attributed to
the product, and bottled at not less than
40 percent alcohol by volume (80°
proof).
(b) Label designations. Brandy
conforming to one of the type
designations must be designated with
the type name or specific designation
specified in the requirements for that
type. The term ‘‘brandy’’ without further
qualification (such as ‘‘peach’’ or
‘‘marc’’) may only be used as a
designation on labels of grape brandy as
defined in paragraph (c)(1) of this
section. Brandy conforming to one of
the type designations defined in
paragraphs (c)(1) through (12) of this
section must be designated on the label
with the type name unless a specific
designation is included in the
requirements for that type. Brandy, or
mixtures thereof, not conforming to any
of the types defined in this section must
be designated on the label as ‘‘brandy’’
followed immediately by a truthful and
adequate statement of composition.
(c) Types. Paragraphs (c)(1) through
(12) of this section set out the types of
brandy and the standards for each type.
Type
Standards
(1) Fruit brandy ....................
Brandy distilled solely from the fermented juice or mash of whole, sound, ripe fruit, or from standard grape or
other fruit wine, with or without the addition of not more than 20 percent by weight of the pomace of such juice
or wine, or 30 percent by volume of the lees of such wine, or both (calculated prior to the addition of water to
facilitate fermentation or distillation). Fruit brandy includes mixtures of such brandy with not more than 30 percent (calculated on a proof gallon basis) of lees brandy. Fruit brandy derived solely from grapes and stored for
at least two years in oak containers must be designated ‘‘grape brandy’’ or ‘‘brandy.’’ Grape brandy that has
been stored in oak barrels for fewer than two years must be designated ‘‘immature grape brandy’’ or ‘‘immature
brandy.’’ Fruit brandy, other than grape brandy, derived from one variety of fruit, must be designated by the
word ‘‘brandy’’ qualified by the name of such fruit (for example, ‘‘peach brandy’’), except that ‘‘apple brandy’’
may be designated ‘‘applejack,’’ ‘‘plum brandy’’ may be designated ‘‘Slivovitz,’’ and ‘‘cherry brandy’’ may be
designated ‘‘Kirschwasser.’’ Fruit brandy derived from more than one variety of fruit must be designated as
‘‘fruit brandy’’ qualified by a truthful and adequate statement of composition, for example ‘‘Fruit brandy distilled
from strawberries and blueberries.’’
Grape brandy distilled exclusively in the Cognac region of France, which is entitled to be so designated by the
laws and regulations of the French government.
Grape brandy distilled exclusively in France in accordance with the laws and regulations of France regulating the
manufacture of Armagnac for consumption in France.
Grape brandy distilled exclusively in Spain in accordance with the laws and regulations of Spain regulating the
manufacture of Brandy de Jerez for consumption in Spain.
Apple brandy distilled exclusively in France in accordance with the laws and regulations of France regulating the
manufacture of Calvados for consumption in France.
Grape brandy distilled in Peru or Chile in accordance with the laws and regulations of the country of manufacture
of Pisco for consumption in the country of manufacture, including:
(i) ‘‘Pisco Peru´’’ (or ‘‘Pisco Peru’’), which is Pisco manufactured in Peru in accordance with the laws and regulations of Peru governing the manufacture of Pisco for consumption in that country; and
(ii) ‘‘Pisco Chileno’’ (or ‘‘Chilean Pisco’’), which is Pisco manufactured in Chile in accordance with the laws and
regulations of Chile governing the manufacture of Pisco for consumption in that country.
Brandy that conforms to the standard for fruit brandy except that it has been derived from sound, dried fruit, or
from the standard wine of such fruit. Brandy derived from raisins, or from raisin wine, must be designated ‘‘raisin brandy.’’ Dried fruit brandy, other than raisin brandy, must be designated by the word ‘‘brandy’’ qualified by
the name of the dried fruit from which made preceded by the word ‘‘dried’’, for example, ‘‘dried apricot brandy.’’
Brandy distilled from the lees of standard grape or other fruit wine, and such brandy derived solely from grapes
must be designated ‘‘grape lees brandy’’ or ‘‘lees brandy.’’ Lees brandy derived from fruit other than grapes
must be designated as ‘‘lees brandy,’’ qualified by the name of the fruit from which such lees are derived, for
example, ‘‘cherry lees brandy.’’
(2) Cognac or ‘‘Cognac
(grape) brandy’’.
(3) Armagnac .......................
(4) Brandy de Jerez .............
(5) Calvados .........................
(6) Pisco ...............................
(7) Dried fruit brandy ............
(8) Lees brandy ....................
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Type
(9) Pomace brandy or Marc
brandy.
(10) Residue brandy ............
(11) Neutral brandy ..............
(12) Substandard brandy .....
§ 5.146
60665
Standards
Brandy distilled from the skin and pulp of sound, ripe grapes or other fruit, after the withdrawal of the juice or
wine therefrom. Such brandy derived solely from grape components must be designated ‘‘grape pomace brandy,’’ ‘‘grape marc brandy’’, ‘‘pomace brandy,’’ or ‘‘mark brandy.’’ Grape pomace brandy may alternatively be
designated as ‘‘grappa’’ or ‘‘grappa brandy.’’ Pomace or marc brandy derived from fruit other than grapes must
be designated as ‘‘pomace brandy’’ or ‘‘marc brandy’’ qualified by the name of the fruit from which derived, for
example, ‘‘apple pomace brandy’’ or ‘‘pear marc brandy.’’
Brandy distilled wholly or in part from the fermented residue of fruit or wine. Such brandy derived solely from
grapes must be designated ‘‘grape residue brandy,’’ or ‘‘residue brandy.’’ Residue brandy, derived from fruit
other than grapes, must be designated as ‘‘residue brandy’’ qualified by the name of the fruit from which derived, for example, ‘‘orange residue brandy.’’ Brandy distilled wholly or in part from residue materials which
conforms to any of the standards set forth in paragraphs (b)(1) and (7) through (9) of this section may, regardless of such fact, be designated ‘‘residue brandy’’, but the use of such designation shall be conclusive, precluding any later change of designation.
Any type of brandy distilled at more than 85% alcohol by volume (170° proof) but less than 95% alcohol by volume. Such brandy derived solely from grapes must be designated ‘‘grape neutral brandy,’’ or ‘‘neutral brandy.’’
Other neutral brandies, must be designated in accordance with the rules for those types of brandy, and be
qualified by the word ‘‘neutral’’; for example, ‘‘neutral citrus residue brandy’’.
Any brandy:
(i) Distilled from fermented juice, mash, or wine having a volatile acidity, calculated as acetic acid and exclusive of sulfur dioxide, in excess of 0.20 gram per 100 cubic centimeters (20 degrees Celsius); measurements
of volatile acidity must be calculated exclusive of water added to facilitate distillation.
(ii) distilled from unsound, moldy, diseased, or decomposed juice, mash, wine, lees, pomace, or residue, or
which shows in the finished product any taste, aroma, or characteristic associated with products distilled from
such material.
(iii) Such brandy derived solely from grapes must be designated ‘‘substandard grape brandy,’’ or ‘‘substandard brandy.’’ Other substandard brandies must be designated in accordance with the rules for those types
of brandy, and be qualified by the word ‘‘substandard’’; for example, ‘‘substandard fig brandy’’.
Blended applejack.
(a) The class blended applejack.
‘‘Blended applejack’’ is a mixture
containing at least 20 percent on a proof
gallon basis of apple brandy (applejack)
that has been stored in oak barrels for
not less than two years, and not more
than 80 percent of neutral spirits on a
proof gallon basis. Blended applejack
must be bottled at not less than 40
percent alcohol by volume (80° proof).
(b) Label designation. The label
designation for blended applejack may
be ‘‘blended applejack’’ or ‘‘applejack–
a blend.’’
§ 5.147
Rum.
(a) The class rum. ‘‘Rum’’ is distilled
spirits that is distilled from the
fermented juice of sugar cane, sugar
cane syrup, sugar cane molasses, or
other sugar cane by-products at less
than 95 percent alcohol by volume (190°
proof) having the taste, aroma, and
characteristics generally attributed to
rum, and bottled at not less than 40
percent alcohol by volume (80° proof);
and also includes mixtures solely of
such spirits. All rum may be designated
as ‘‘rum’’ on the label, even if it also
meets the standards for a specific type
of rum.
(b) Types. Paragraph (b)(1) of this
section describes a specific type of rum
and the standards for that type.
Type
Standards
(1) Cachac¸a ..........................
Rum that is a distinctive product of Brazil, manufactured in Brazil in compliance with the laws of Brazil regulating
the manufacture of Cachac¸a for consumption in that country. The word ‘‘Cachac¸a’’ may be spelled with or without the diacritic mark (i.e., ‘‘Cachac¸a’’ or ‘‘Cachaca’’). Cachac¸a may be designated as ‘‘Cachac¸a’’ or ‘‘rum’’ on
labels.
(2) [Reserved]
§ 5.148
Agave spirits.
(a) The class agave spirits. ‘‘Agave
spirits’’ are distilled from a fermented
mash, of which at least 51 percent is
derived from plant species in the genus
Agave and up to 49 percent is derived
from sugar. Agave spirits must be
distilled at less than 95 percent alcohol
by volume (190° proof) and bottled at or
above 40 percent alcohol by volume (80°
proof). Agave spirits may be stored in
wood barrels. Agave spirits may not
contain added flavoring or coloring
materials, except as specified in § 5.155.
This class also includes mixtures of
agave spirits. Agave spirits that meet the
Type
(1) Tequila ............................
(2) Mezcal ............................
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standard of identity for ‘‘Tequila’’ or
‘‘Mezcal’’ may be designated as ‘‘agave
spirits,’’ or as ‘‘Tequila’’ or ‘‘Mezcal’’, as
applicable.
(b) Types. Paragraphs (b)(1) and (2) of
this section describe the types of agave
spirits and the rules for each type.
Standards
An agave spirit that is a distinctive product
laws and regulations of Mexico governing
An agave spirit that is a distinctive product
laws and regulations of Mexico governing
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the manufacture of
of Mexico. Mezcal
the manufacture of
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Tequila for consumption in that country.
must be made in Mexico, in compliance with the
Mezcal for consumption in that country.
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§ 5.149
Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Proposed Rules
Absinthe or absinth.
(a) The class absinthe. Absinthe is
distilled spirits distilled at less than 95
percent alcohol by volume (190° proof)
made with wormwood (Artemisia
absinthium), anise, and fennel (with or
without other flavoring materials) and
possessing the taste, aroma, and
characteristics generally attributed to
absinthe. Absinthe may contain added
sugar. When bottled, absinthe must be at
least 30 percent alcohol by volume (60°
of proof). The designations ‘‘absinthe’’
and ‘‘absinth’’ are interchangeable.
(b) Thujone-free requirement.
Absinthe must be thujone-free in
accordance with U.S. Food and Drug
Administration (FDA) regulations and
standards.
§ 5.150
Cordials and liqueurs.
(a) The class cordials and liqueurs.
Cordials and liqueurs are flavored
distilled spirits that are made by mixing
or redistilling distilled spirits with or
over fruits, flowers, plants, or pure
juices therefrom, or other natural
flavoring materials, or with extracts
derived from infusions, percolation, or
maceration of such materials, and
containing sugar (such as sucrose,
fructose, dextrose, or levulose) in an
amount of not less than 21⁄2 percent by
weight of the finished product.
Designations on labels may be ‘‘Cordial’’
or ‘‘Liqueur,’’ or, in the alternative, may
be one of the type designations below.
Cordials and liqueurs may not be
designated as ‘‘distilled,’’ ‘‘compound,’’
or ‘‘straight’’. The designation of a
cordial or liqueur may include the word
‘‘dry’’ if sugar is less than 10 percent by
weight of the finished product.
(b) Types. Paragraph (b)(1) through
(12) of this section list definitions and
standards for optional type
designations.
The Types of Cordials and Liqueurs
Type
Rule
(1) Sloe gin ...........................
(2) Rye liqueur, bourbon liqueur (or rye cordial or
bourbon cordial).
A cordial or liqueur with the main characteristic flavor derived from sloe berries.
Liqueurs, bottled at not less than 30 percent alcohol by volume, in which not less than 51 percent, on a proof gallon basis, of the distilled spirits used are, respectively, rye or bourbon whisky, straight rye or straight bourbon
whisky, or whisky distilled from a rye or bourbon mash, and which possess a predominant characteristic rye or
bourbon flavor derived from such whisky. Wine, if used, must be within the 21⁄2 percent limitation provided in
§ 5.155 for coloring, flavoring, and blending materials.
Liqueurs, bottled at not less than 24 percent alcohol by volume, in which, in the case of rock and rye and rock
and bourbon, not less than 51 percent, on a proof gallon basis, of the distilled spirits used are, respectively, rye
or bourbon whisky, straight rye or straight bourbon whisky, or whisky distilled from a rye or bourbon mash, and,
in the case of rock and brandy and rock and rum, the distilled spirits used are all grape brandy or rum, respectively; containing rock candy or sugar syrup, with or without the addition of fruit, fruit juices, or other natural flavoring materials, and possessing, respectively, a predominant characteristic rye, bourbon, brandy, or rum flavor
derived from the distilled spirits used. Wine, if used, must be within the 21⁄2 percent limitation provided in
§ 5.155 for harmless coloring, flavoring, and blending materials.
Liqueurs, bottled at not less than 30 percent alcohol by volume, in which the distilled spirits used are entirely rum,
gin, or brandy, respectively, and which possess, respectively, a predominant characteristic rum, gin, or brandy
flavor derived from the distilled spirits used. In the case of brandy liqueur, the type of brandy must be stated in
accordance with paragraph (d) of this section, except that liqueurs made entirely with grape brandy may be
designated simply as ‘‘brandy liqueur.’’ Wine, if used, must be within the 21⁄2 percent limitation provided for in
§ 5.155 for harmless coloring, flavoring, and blending materials.
Almond flavored liqueur/cordial.
Caraway flavored liqueur/cordial.
Anise flavored liqueurs/cordials.
Anise flavored liqueur. See § 5.154(b)(3) for designation rules for Sambuca not produced in Italy.
Peppermint flavored liqueur/cordial.
Orange flavored liqueurs/cordials. Curacao may be preceded by the color of the liqueur/cordial (for example, Blue
Curacao).
A liqueur/cordial where the blank is filled in with the predominant flavor (for example, Cre`me de menthe is mint
flavored liqueur/cordial.)
Herb flavored liqueur/cordial and containing gold flakes. See § 5.154(b)(3) for designation rules for goldwasser
not made in Germany.
(3) Rock and rye; Rock and
bourbon; Rock and brandy; Rock and rum.
(4) Rum liqueur, gin liqueur,
brandy liqueur.
(5) Amaretto .........................
(6) Kummel ...........................
(7) Ouzo, Anise, Anisette .....
(8) Sambuca .........................
(9) Peppermint Schnapps ....
(10) Triple Sec and Curacao
(11) Cre`me de lll ..........
(12) Goldwasser ...................
§ 5.151
Flavored spirits.
(a) The class flavored spirits.
‘‘Flavored spirits’’ are distilled spirits
that are spirits conforming to one of the
standards of identity set forth in
§§ 5.142 through 5.150 (the ‘‘base
spirits’’) to which have been added
nonbeverage flavors, wine, or
nonalcoholic natural flavoring
materials, with or without the addition
of sugar, and bottled at not less than 30
percent alcohol by volume (60° proof).
The flavored spirits must be specifically
designated by the single base spirit and
one or more of the most predominant
flavors (for example, ‘‘Pineapple
Flavored Tequila’’ or ‘‘Cherry Vanilla
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Flavored Bourbon Whisky’’). The base
spirit must conform to the standard of
identity for that spirit before the
flavoring is added. Base spirits that are
a distinctive product of a particular
place must be manufactured in
accordance with the laws and
regulations of the country as designated
in the base spirit’s standard of identity.
If the finished product contains more
than 21⁄2 percent by volume of wine, the
kinds and percentages by volume of
wine must be stated as a part of the
designation (whether the wine is added
directly to the product or whether it is
first mixed into an intermediate
product), except that a flavored brandy
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may contain an additional 121⁄2 percent
by volume of wine, without label
disclosure, if the additional wine is
derived from the particular fruit
corresponding to the labeled flavor of
the product.
§ 5.152
Imitations.
(a) Imitations must bear, as a part of
the designation thereof, the word
‘‘imitation’’ and include the following:
(1) Any class or type of distilled
spirits to which has been added coloring
or flavoring material of such nature as
to cause the resultant product to
simulate any other class or type of
distilled spirits;
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(2) Any class or type of distilled
spirits (other than distilled spirits
specialty products as defined in § 5.156)
to which has been added flavors
considered to be artificial or imitation.
(Note: TTB Procedure XXXX–XX,
available on the TTB website (https://
www.ttb.gov) provides guidance on the
use of the terms ‘‘natural’’ and
‘‘artificial’’ when referencing flavoring
materials);
(3) Any class or type of distilled
spirits (except cordials, liqueurs and
specialties marketed under labels which
do not indicate or imply that a
particular class or type of distilled
spirits was used in the manufacture
thereof) to which has been added any
whisky essence, brandy essence, rum
essence, or similar essence or extract
which simulates or enhances, or is used
by the trade or in the particular product
to simulate or enhance, the
characteristics of any class or type of
distilled spirits;
(4) Any type of whisky to which
beading oil has been added;
(5) Any rum to which neutral spirits
or distilled spirits other than rum have
been added;
(6) Any brandy made from distilling
material to which has been added any
amount of sugar other than the kind and
amount of sugar expressly authorized in
the production of standard wine; and
(7) Any brandy to which neutral
spirits or distilled spirits other than
brandy have been added, except that
this provision shall not apply to any
product conforming to the standard of
identity for blended applejack.
(b) If any of the standards set forth in
paragraphs (a)(1) through (7) of this
section apply, the ‘‘Imitation’’ class
designation must be used in front of the
appropriate class designation (for
example, Imitation Whisky).
§ 5.153
Diluted spirits.
(a) The class diluted spirits. When a
minimum bottling alcohol content
(proof) is required for a class or type and
a product would meet one of the classes
or types prescribed in this subpart
except that that product does not meet
the minimum bottling alcohol content,
the product must be designated with the
applicable class or type designation
(and statement of composition, if
required) immediately preceded by the
word ‘‘Diluted’’ in readily legible type at
least half as large as the class or type
designation to which it refers. Examples
of such designations are ‘‘Diluted
Vodka,’’ ‘‘Diluted Cherry Lees Brandy,’’
and ‘‘Diluted flavored whisky.’’
(b) [Reserved]
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§ 5.154 Rules for geographical
designations.
(a) Geographical designations. (1)
Geographical names for distilled spirits
found by the appropriate TTB officer to
have lost their geographical significance
by usage and common knowledge to
such extent that they have become
generic may be used without regard to
where the product is actually
manufactured or bottled. The following
names have been found to be generic:
London dry gin, Geneva (Hollands) gin.
(2) Except as provided in paragraph
(a)(3) of this section, geographical
names that have not become generic
shall not be applied to distilled spirits
made in any place other than the
particular place or region indicated in
the name. Examples are Greek brandy,
Jamaica rum, Puerto Rico rum,
Demerara rum, and Andong Soju.
(3) Geographical names that are not
generic may be used as the designation
for types of distilled spirits made in a
place other than the particular region
indicated by the name if:
(i) The appropriate TTB officer has
determined that the name represents a
type of distilled spirits;
(ii) The word ‘‘type,’’ ‘‘style,’’ or some
other statement indicating the true place
of production appears as part of the
designation; and
(iii) The distilled spirits to which the
name is applied conforms to the
standard of identity identified in this
subpart.
(iv) The following geographical names
are recognized as types of distilled
spirits in accordance with paragraph
(a)(3)(i) of this section: Eau de Vie de
Dantzig (Danziger Goldwasser), Ojen,
and Swedish punch.
(b) Products without geographical
designations that are associated with a
particular geographical region. (1) A
name that is not a geographical name
but that is generally perceived as a name
associated with a particular geographic
place, region, or country may not be
used on the label of a product of any
other place, region or country, except as
otherwise provided in this paragraph.
(2) Designations for distilled spirits
listed in this paragraph and that by
usage and common knowledge have lost
any geographical significance to such an
extent that the appropriate TTB officer
finds they have become generic may be
used to designate spirits of any origin.
Examples of names that TTB has found
to be generic include: Zubrovka,
Aquavit, Arrack, Kummel, Amaretto,
and Ouzo.
(3) Designations for distilled spirits
listed in this paragraph that the
appropriate TTB officer has determined
have, by usage and common knowledge,
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60667
become associated with distilled spirits
produced in geographic areas other than
the region with which the name was
originally associated may be used to
designate products of any origin, as long
as the designation for such product
includes the word ‘‘type’’ or an
adjective such as ‘‘American’’ that
clearly indicates the true place of
production. TTB has determined that
the names ‘‘Habanero,’’ ‘‘Sambuca,’’ and
‘‘Goldwasser’’ fall into this category.
§ 5.155
Alteration of class and type.
(a) Definitions—(1) Coloring,
flavoring, or blending material. For the
purposes of this section, the term
‘‘coloring, flavoring, or blending
material’’ means a harmless substance
that is an essential component of the
class or type of distilled spirits to which
it is added; or a harmless substance,
such as caramel, straight malt or straight
rye malt whiskies, fruit juices, sugar,
infusion of oak chips when approved by
the Administrator, or wine, that is not
an essential component part of the
distilled spirits product to which it is
added but which is customarily
employed in the product in accordance
with established trade usage.
(2) Certified color. For purposes of
this section, the term ‘‘certified color’’
means a color additive that is required
to undergo batch certification in
accordance with part 74 or part 82 of the
Food and Drug Administration
regulations (21 CFR parts 74 and 82). An
example of a certified color is FD&C
Blue No. 2.
(b) Allowable additions. Except as
provided in paragraph (c) of this
section, the following may be added to
distilled spirits without changing the
class or type designation:
(1) Coloring, flavoring, and blending
materials that are essential components
of the class or type of distilled spirits to
which added;
(2) Coloring, flavoring, and blending
materials that are not essential
component parts of the distilled spirits
to which added, provided that such
coloring, flavoring, or blending
materials do not total more than 2 1⁄2
percent by volume of the finished
product; and
(3) Wine, when added to Canadian
whisky in Canada in accordance with
the laws and regulations of Canada
governing the manufacture of Canadian
whisky.
(c) Exceptions. The addition of the
following will require a redesignation of
the class or type of the distilled spirits
product to which added:
(1) Coloring, flavoring, or blending
materials that are not essential
component parts of the class or type of
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distilled spirits to which they are added,
if such coloring, flavoring, and blending
materials total more than 21⁄2 percent by
volume of the finished product;
(2) Any material, other than caramel,
infusion of oak chips, and sugar, added
to Cognac brandy;
(3) Any material whatsoever added to
neutral spirits or straight whisky, except
that vodka may be treated with sugar, in
an amount not to exceed two grams per
liter, and with citric acid, in an amount
not to exceed one gram per liter;
(4) Certified colors, carmine, or
cochineal extract;
(5) Any material that would render
the product to which it is added an
imitation, as defined in § 5.152; or
(6) For products that are required to
be stored in oak barrels in accordance
with a standard of identity, the storing
of the product in an additional barrel
made of another type of wood.
(d) Extractions from distilled spirits.
The removal of any constituents from a
distilled spirits product to such an
extent that the product no longer
possesses the taste, aroma, and
characteristics generally attributed to
that class or type of distilled spirits will
alter the class or type of the product,
and the resulting product must be
redesignated appropriately. In addition,
in the case of straight whisky, the
removal of more than 15 percent of the
fixed acids, volatile acids, esters,
soluble solids, or higher alcohols, or the
removal of more than 25 percent of the
soluble color, constitutes an alteration
of the class or type of the product and
requires a redesignation of the product.
(e) Exceptions. Nothing in this section
has the effect of modifying the standards
of identity specified in § 5.150 for
cordials and liqueurs, and in § 5.151 for
flavored spirits, or of authorizing any
product defined in § 5.152 to be
designated as other than an imitation.
§ 5.156
Distilled spirits specialty products.
(a) General. Distilled spirits that do
not meet one of the other standards of
identity specified in this subpart are
distilled spirits specialty products and
must be designated in accordance with
trade and consumer understanding, or,
if no such understanding exists, with a
distinctive or fanciful name (which may
be the name of a cocktail) appearing in
the same field of vision as a statement
of composition. The statement of
composition and the distinctive or
fanciful name serve as the class and
type designation for these products. The
statement of composition must follow
the rules found in § 5.166. A product
may not bear a designation which
indicates it contains a class or type of
distilled spirits unless the distilled
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spirits therein conform to such class and
type.
(b) Products designated in accordance
with trade and consumer
understanding. Products may be
designated in accordance with trade and
consumer understanding without a
statement of composition if the
appropriate TTB officer has determined
that there is such understanding.
§ § 5.157–5.165
§ 5.166
[Reserved]
Statements of composition.
(a) Rules for the statement of
composition. When a statement of
composition is required as part of a
designation for a distilled spirits
specialty product, the statement must
contain all of the information specified
in this section, as applicable. The
statement must specify all harmless
coloring, flavoring, and blending
materials, except to the extent the
materials in the product are part of a
distilled spirit that is identified in the
statement of composition and the
distilled spirit contains the materials
within the limitations specified in the
standards of identity for the distilled
spirit, or the standards set out in
§ 5.155. If an intermediate product is
used to make a distilled spirits specialty
product, the materials used to make the
intermediate product should be
identified in the statement of
composition as if they were mixed
directly into the distilled spirits without
regard to the fact that they were first
mixed into an intermediate product.
(1) Identify the distilled spirits and
wines. The statement of composition
must clearly identify the distilled spirits
and wines used in the finished product.
The statement of composition must
show the required class and/or type
designation for each distilled spirit (e.g.,
‘‘vodka,’’ ‘‘whisky,’’ ‘‘rum,’’ ‘‘gin’’). The
statement of composition must identify
any wines used in the product, but the
statement is not required to specifically
identify the classes and/or types of the
wines. The statement of composition
must list each distilled spirit and wine
in order of predominance on a proof
gallon basis. If a product contains
multiple classes and/or types of wine
and the statement of composition does
not specifically identify each one, the
predominance of the wine must be
determined based on its total quantity in
the product on a proof gallon basis.
(2) Identify flavoring and blending
material(s) (not including distilled
spirits and wines) used before, during,
and after distillation. The statement of
composition must disclose flavoring and
blending materials used in the finished
product. If the flavoring materials were
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used before or during the distillation
process, the statement of composition
must indicate that the distilled spirits
were distilled with the flavoring
material (e.g., Vodka Distilled with
Cinnamon). If a single flavoring material
is used in the production of the distilled
spirits product, the flavoring material
may be specifically identified (such as,
‘‘strawberry flavor,’’ ‘‘strawberry juice,’’
or ‘‘whole strawberries’’) or generally
referenced (such as, ‘‘natural flavor’’). If
two or more flavoring materials are used
in the production of the distilled spirits
product, each flavoring material may be
specifically identified (such as, ‘‘peach
flavor, kiwi flavor,’’ or ‘‘peach and kiwi
flavors’’) or the characterizing flavor
may be specifically identified and the
remaining flavoring material(s) may be
generally referenced (such as, ‘‘peach
and other natural and artificial
flavor(s)’’), or all flavors may be
generally referenced (such as, ‘‘with
artificial flavors’’). (Note: TTB
Procedure XXXX–XX, available on the
TTB website (https://www.ttb.gov),
provides guidance on the use of the
terms ‘‘natural’’ and ‘‘artificial’’ when
referencing flavoring materials.)
(3) Identify added coloring
material(s). The statement of
composition must disclose the addition
of coloring material(s), whether added
directly or through flavoring material(s),
if the addition of such material(s) to the
base distilled spirits is not in
accordance with the standards of
identity. The coloring material(s) may
be identified specifically (such as,
‘‘caramel color,’’ ‘‘FD&C Red #40,’’
‘‘annatto,’’ etc.) or as a general
statement, such as, ‘‘Contains certified
color’’, for colors approved under 21
CFR part 74, or ‘‘artificially colored,’’ to
indicate the presence of any one or a
combination of coloring material(s).
However, FD&C Yellow No. 5, cochineal
extract, and carmine require specific
disclosure in accordance with § 5.71
and may be disclosed either in the
statement of composition or elsewhere,
in accordance with that section, if the
statement of composition contains only
a general disclosure of added colors.
Where the standard of identity for that
base spirit does not require disclosure,
caramel used in the production of the
base spirit is not required to be
disclosed as part of the statement of
composition. However, caramel added
in the production of the specialty
product must be disclosed.
(4) Identify added artificial or other
non-nutritive sweeteners. The statement
of composition must disclose any
artificial sweetener that is added to a
distilled spirits product, whether the
artificial sweetener is added directly or
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through flavoring material(s). The
artificial sweetener may be identified
specifically by either generic name or
trademarked brand name, or as a general
statement (such as ‘‘artificially
sweetened’’), to indicate the presence of
any one or combination of artificial
sweeteners. However, if aspartame is
used, an additional warning statement is
required in accordance with § 5.63.
(5) Identify certain ingredients. The
statement of composition must disclose
any ingredient that is permitted by a
standard of identity, but used in a
method or quantity that makes the
finished product no longer meet the
standard of identity. For example, vodka
to which more than two grams of sugar
per liter is added is no longer
designated as vodka. The statement of
composition may read ‘‘Vodka with
added sugar.’’
(b) [Reserved]
Subpart J—Formulas
§ 5.191
Application.
The requirements of this subpart
apply to the following persons:
(a) Proprietors of distilled spirits
plants qualified as processors under part
19 of this chapter;
(b) Persons in the Commonwealth of
Puerto Rico who manufacture distilled
spirits products for shipment to the
United States. However, the filing of a
formula for approval by TTB is only
required for those products that will be
shipped to the United States; and
(c) Persons who ship Virgin Islands
distilled spirits products into the United
States.
§ 5.192
Formula requirements.
(a) General. An approved formula is
required to blend, mix, purify, refine,
compound, or treat distilled spirits in a
manner that results in a change of class
or type of the spirits.
(b) Preparation and submission. In
order to obtain formula approval, a
person listed in § 5.191 must complete
and file TTB Form 5100.51, Formula
and Process for Domestic and Imported
Alcohol Beverages, electronically or in
paper format, in accordance with the
instructions for the form. When a
product will be made or processed
under the same formula at more than
one location operated by the distiller or
processor, the distiller or processor
must identify on the form each place of
production or processing by name and
address, and by permit number, if
applicable, and must ensure that a copy
of the approved formula is maintained
at each location.
(c) Existing approvals. Any approval
of a formula will remain in effect until
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revoked, superseded, or voluntarily
surrendered, and if the formula is
revoked, superseded, or voluntarily
surrendered, any existing qualifying
statements on such approval as to the
rate of tax or the limited use of alcoholic
flavors will be made obsolete.
(d) Change in formula. Any change in
an approved formula requires the filing
of a new Form 5100.51 for approval of
the changed formula. After a changed
formula is approved, the filer must
surrender the original formula approval
to the appropriate TTB officer.
§ 5.193
Operations requiring formulas.
The following operations change the
class or type of distilled spirits and
therefore require formula approval
under § 5.192:
(a) The compounding of distilled
spirits through the mixing of a distilled
spirits product with any coloring or
flavoring material, wine, or other
material containing distilled spirits
(except for harmless coloring, flavoring
or blending materials that do not alter
the class or type pursuant to § 5.155);
(b) The manufacture of an
intermediate product to be used
exclusively in other distilled spirits
products on bonded premises;
(c) Any filtering or stabilizing process
that results in a distilled spirits
product’s no longer possessing the taste,
aroma, and characteristics generally
attributed to the class or type of distilled
spirits before the filtering or stabilizing,
or, in the case of straight whisky, that
results in the removal of more than 15
percent of the fixed acids, volatile acids,
esters, soluble solids, or higher alcohols,
or more than 25 percent of the soluble
color;
(d) The mingling of spirits that differ
in class or in type of materials from
which made;
(e) The mingling of distilled spirits
that were stored in charred cooperage
with distilled spirits that were stored in
plain or reused cooperage, or the mixing
of distilled spirits that have been treated
with wood chips with distilled spirits
not so treated, or the mixing of distilled
spirits that have been subjected to any
treatment which changes their character
with distilled spirits not subjected to
such treatment, unless it is determined
by the appropriate TTB officer in each
of these cases that the composition of
the distilled spirits is the same
notwithstanding the storage in different
kinds of cooperage or the treatment of
a portion of the spirits;
(f) Except when authorized for
production or storage operations by part
19 of this chapter, the use of any
physical or chemical process or any
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apparatus that accelerates the maturing
of the distilled spirits;
(g) The steeping or soaking of plant
materials, such as fruits, berries,
aromatic herbs, roots, or seeds, in
distilled spirits or wines at a distilled
spirits plant;
(h) The artificial carbonating of
distilled spirits;
(i) In Puerto Rico, the blending of
distilled spirits with any liquors
manufactured outside Puerto Rico;
(j) The production of gin by:
(1) Redistillation, over juniper berries
and other natural aromatics or over the
extracted oils of such materials, of
spirits distilled at or above 190 degrees
of proof that are free from impurities,
including such spirits recovered by
redistillation of imperfect gin spirits; or
(2) Mixing gin with other distilled
spirits;
(k) The treatment of gin by:
(1) The addition or abstraction of any
substance or material other than pure
water after redistillation in a manner
that would change its class and type
designation; or
(2) The addition of any substance or
material other than juniper berries or
other natural aromatics or the extracted
oils of such materials, or the addition of
pure water, before or during
redistillation, in a manner that would
change its class and type designation;
and
(l) The recovery of spirits by
redistillation from distilled spirits
products containing other alcoholic
ingredients and from spirits that have
previously been entered for deposit.
However, no formula approval is
required for spirits redistilled into any
type of neutral spirits other than vodka
or for spirits redistilled at less than 190
degrees of proof that lack the taste,
aroma and other characteristics
generally attributed to whisky, brandy,
rum, or gin and that are designated as
‘‘Spirits’’ preceded or followed by a
word or phrase descriptive of the
material from which distilled. Such
spirits may not be designated ‘‘Spirits
Grain’’ or ‘‘Grain Spirits’’ on any label.
§ 5.194 Adoption of predecessor’s
formulas.
A successor to a person listed in
§ 5.191 may adopt a predecessor’s
approved formulas by filing an
application with the appropriate TTB
officer. The application must include a
list of the formulas for adoption and
must identify each formula by formula
number, name of product, and date of
approval. The application must clearly
show that the predecessor has
authorized the use of the previously
approved formulas by the successor.
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Subpart K—Standards of Fill and
Authorized Container Sizes.
§ 5.201
General.
No person engaged in business as a
distiller, blender, or other producer, or
as an importer or wholesaler, or as a
bottler or warehouseman and bottler,
directly or indirectly, or through an
affiliate, may sell or ship or deliver for
sale or shipment in interstate or foreign
commerce, or otherwise introduce in
interstate or foreign commerce, or
receive therein, or remove from customs
custody for consumption, any distilled
spirits in containers, unless the distilled
spirits are bottled in conformity with
§§ 5.202 and 5.203.
§ 5.202
Standard liquor containers.
(a) General. Except as provided in
paragraph (d) of this section and in
§ 5.205, distilled spirits must be bottled
in standard liquor containers, as defined
in this paragraph. A standard liquor
container is a container that is made,
formed, and filled in such a way that it
does not mislead purchasers as regards
its contents. An individual carton or
other container of a bottle may not be
so designed as to mislead purchasers as
to the size of the bottle it contains.
(b) Headspace. A filled liquor
container of a capacity of 200 milliliters
(6.8 fl. oz.) or more is deemed to
mislead the purchaser if it has a
headspace in excess of 8 percent of the
total capacity of the container after
closure.
(c) Design. Regardless of the
correctness of the stated net contents, a
liquor container is deemed to mislead
the purchaser if it is made and formed
in such a way that its actual capacity is
substantially less than the capacity it
appears to have upon visual
examination under ordinary conditions
of purchase or use.
(d) Exception for distinctive liquor
bottles. The provisions of paragraphs (b)
and (c) of this section do not apply to
liquor bottles for which a distinctive
liquor bottle approval has been issued
pursuant to § 5.205.
§ 5.203
Standards of fill (container sizes).
(a) Authorized standards of fill. The
following metric standards of fill are
authorized for distilled spirits, whether
domestically bottled or imported:
(1) Containers other than cans. For
containers other than cans described in
paragraph (a)(2) of this section—
(i) 1.75 liters.
(ii) 1.00 liter.
(iii) 750 mL.
(iii) 375 mL.
(iv) 200 mL.
(v) 100 mL.
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(vi) 50 mL.
(2) Metal cans. For metal containers
that have the general shape and design
of a can, that have a closure that is an
integral part of the container, and that
cannot be readily reclosed after
opening—
(i) 355 mL.
(ii) 200 mL.
(iii) 100 mL.
(iv) 50 mL.
(b) Spirits bottled using outdated
standards. Paragraph (a) of this section
does not apply to:
(1) Imported distilled spirits in the
original containers in which entered
into customs custody prior to January 1,
1980 (or prior to July 1, 1989 in the case
of distilled spirits imported in 500 mL
containers); or
(2) Imported distilled spirits bottled
or packed prior to January 1, 1980 (or
prior to July 1, 1989 in the case of
distilled spirits in 500 mL containers)
and certified as to such in a statement
signed by an official duly authorized by
the appropriate foreign government.
§ 5.204 Aggregate packaging to meet
standard of fill requirements.
(a) Under the conditions set forth in
paragraphs (b) through (f) of this
section, industry members may use
aggregate packaging to satisfy a standard
of fill required under § 5.203 of this
part. That is, industry members may
bottle distilled spirits in containers that
do not meet a standard of fill, as long
as those containers are then packaged
together in a larger container and the
entire net contents of the aggregate
package meets a standard of fill. For
example, thirty 25-mL containers may
be packaged together to meet the 750
mL standard of fill. The industry
member must submit the actual external
container and a sample of one of the
internal containers to TTB upon request
by the appropriate TTB officer as part of
the COLA review process.
(b) The distilled spirits in each of the
individual internal containers of the
aggregate package must have the same
alcohol content.
(c) The external container, as well as
each of the individual internal
containers, must be labeled with all of
the mandatory label information
required by this part and parts 16 and
19 of this chapter; however, an
appropriate standard of fill is not
required for internal containers.
(d) The external container must
include a net contents statement that
indicates how the aggregate package
equals an authorized standard of fill (for
example, ‘‘750 mL = 30 containers of 25
mL each’’). Internal containers must
include a net contents statement in
accordance with § 5.68 of this part.
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(e) The external container must be
shrink-wrapped, boxed, or sealed in
such a manner that the smaller
containers cannot be easily removed.
(f) Each of the smaller containers must
be labeled ‘‘NOT FOR INDIVIDUAL
SALE.’’
§ 5.205
Distinctive liquor bottle approval.
(a) General. A bottler or importer of
distilled spirits in distinctive liquor
bottles may apply for a distinctive
liquor bottle approval from the
appropriate TTB officer. The distinctive
liquor bottle approval will provide an
exemption only from those
requirements that are specified in
paragraph (b) of this section. A
distinctive liquor bottle is a container
that is not the customary shape and that
may obscure the net contents of the
distilled spirits.
(b) Exemptions provided by the
distinctive liquor bottle approval. The
distinctive liquor bottle approval issued
pursuant to this section will provide
that:
(1) The provisions of § 5.202(b) and
(c) do not apply to the liquor containers
for which the distinctive liquor bottle
approval has been issued; and
(2) The information required to
appear in the same field of vision
pursuant to § 5.63(a) may appear
elsewhere on a distinctive liquor bottle
for which the distinctive liquor bottle
approval has been issued, if the design
of the container precludes the
presentation of all mandatory
information in the same field of vision.
(c) How to apply. A bottler or
importer of distilled spirits in
distinctive liquor bottles may apply for
a distinctive liquor bottle approval as
part of the application for a COLA.
Subpart L—Recordkeeping and
Substantiation Requirements
§ 5.211 Recordkeeping requirements—
certificates.
(a) Certificates of label approval
(COLAs). Upon request by the
appropriate TTB officer, a bottler or
importer must provide evidence that a
container of distilled spirits is covered
by a certificate of label approval (COLA)
or a certificate of exemption. This
requirement may be satisfied by
providing original COLAs, photocopies
or electronic copies of COLAs, or
records showing the TTB Identification
number assigned to the approved
certificate. TTB may request such
information for a period of five years
from the date that the products covered
by the COLAs were removed from the
bottler’s premises or from customs
custody, as applicable.
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(b) Labels with revisions. Where labels
on containers reflect revisions to the
approved label that have been made in
compliance with allowable revisions
authorized by TTB Form 5100.31 or
otherwise authorized by TTB, the bottler
or importer must, upon request by the
appropriate TTB officer, identify the
COLA covering the product if the
product is required to be covered by a
COLA. TTB may request such
information for a period of five years
from the date that the products covered
by the COLAs were removed from the
bottler’s premises or from customs
custody, as applicable.
(c) Other recordkeeping requirements
under this part. See §§ 5.26, 5.30, and
5.192(b) for other recordkeeping
requirements under this part.
§ 5.212
Substantiation requirements.
(a) Application. The substantiation
requirements of this section apply to
any claim made on any label or
container subject to the requirements of
this part.
(b) Reasonable basis in fact. All
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Claims that contain express or implied
statements regarding the amount of
support for the claim (such as ‘‘tests
prove,’’ or ‘‘studies show’’) must have
the level of substantiation that is
claimed. Any labeling claim that does
not have a reasonable basis in fact, or
cannot be adequately substantiated
upon the request of the appropriate TTB
officer, will be considered misleading
within the meaning of § 5.122(b)(2).
(c) Evidence that claims are
adequately substantiated. The
appropriate TTB officer may request
that bottlers and importers provide
evidence that labeling claims are
adequately substantiated at any time
within a period of five years from the
time the distilled spirits were removed
from the bottling premises or from
customs custody, as applicable.
permit provides grounds for the
revocation or suspension of the permit,
as applicable, as set forth in part 1 of
this chapter.
§ 5.223
Compromise.
Pursuant to 27 U.S.C. 207, the
appropriate TTB officer is authorized,
with respect to any violation of 27
U.S.C. 205, to compromise the liability
arising with respect to such violation
upon payment of a sum not in excess of
$500 for each offense, to be collected by
the appropriate TTB officer and to be
paid into the Treasury as miscellaneous
receipts.
Subpart N—Paperwork Reduction Act
§ 5.231 OMB control numbers assigned
under the Paperwork Reduction Act.
(a) Purpose. This subpart displays the
control numbers assigned to information
collection requirements in this part by
the Office of Management and Budget
(OMB) under the Paperwork Reduction
Act of 1995, Public Law 104–13.
(b) Chart. The following chart
identifies each section in this part that
contains an information collection
requirement and the OMB control
number that is assigned to that
information collection requirement.
Section where
contained
5.21 ................
5.22 ................
5.23 ................
5.24 ................
5.25 ................
5.27 ................
5.28
5.30
5.62
5.63
................
................
................
................
Subpart M—Penalties and
Compromise of Liability
5.81 ................
5.82 ................
§ 5.221
5.83 ................
Criminal penalties.
A violation of the labeling provisions
of 27 U.S.C. 205(e) is punishable as a
misdemeanor. See 27 U.S.C. 207 for the
statutory provisions relating to criminal
penalties, consent decrees, and
injunctions.
§ 5.222
Conditions of basic permit.
A basic permit is conditioned upon
compliance with the requirements of 27
U.S.C. 205, including the labeling
provisions of this part. A willful
violation of the conditions of a basic
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5.84 ................
5.85 ................
5.86 ................
5.87 ................
5.88 ................
5.89 ................
5.90 ................
5.121 ..............
5.122 ..............
5.123 ..............
5.124 ..............
5.125 ..............
5.126 ..............
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Current OMB Control No.
1513–0020.
1513–0020,
1513–0111.
1513–0020,
1513–0111.
1513–0020,
1513–0064,
1513–0122.
1513–0020,
1513–0111,
1513–0122.
1513–0020,
1513–0122.
1513–0122.
New control number.
1513–0087.
1513–0084,
1513–0087.
1513–0087.
1513–0087,
1513–0121.
1513–0087,
1513–0121.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
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Section where
contained
5.127
5.128
5.129
5.130
5.192
..............
..............
..............
..............
..............
5.193 ..............
5.194
5.203
5.211
5.212
■
..............
..............
..............
..............
60671
Current OMB Control No.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0122,
1513–0046.
1513–0122,
1513–0046.
1513–0122.
1513–0064.
New control number.
New control number.
3. Revise part 7 to read as follows:
PART 7—LABELING OF MALT
BEVERAGES
Subpart A—General Provisions
Sec.
7.0
7.1
7.2
7.3
Scope.
Definitions.
Territorial extent.
General requirements and prohibitions
under the FAA Act.
7.4 Jurisdictional limits of the FAA Act.
7.5 Ingredients and processes.
7.6 Brewery products not covered by this
part.
7.7 Other TTB labeling regulations that
apply to malt beverages.
7.8 Malt beverages for export.
7.9 Compliance with Federal and State
requirements.
7.10 Other related regulations.
7.11 Forms.
7.12 Delegations of the Administrator.
Subpart B—Certificates of Label Approval
Requirements for Malt Beverages Bottled in
the United States
7.21 Requirement for certificates of label
approval (COLAs) for malt beverages
bottled in the United States.
7.22 Rules regarding certificates of label
approval (COLAs) for malt beverages
bottled in the United States.
7.23 [Reserved]
Requirements for Malt Beverages Imported
in Containers
7.24 Certificates of label approval (COLAs)
for malt beverages imported in
containers.
7.25 Rules regarding certificates of label
approval (COLAs) for malt beverages
imported in containers.
Administrative Rules
7.27 Presenting certificates of label
approval (COLAs) to Government
officials.
7.28 Formulas, samples, and
documentation.
7.29 Personalized labels.
Subpart C—Alteration of Labels, Relabeling,
and Adding Information to Containers
7.41 Alteration of labels.
7.42 Authorized relabeling activities by
brewers and importers.
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7.43
Relabeling activities that require
separate written authorization from TTB.
7.44 Adding a label or other information to
a container that identifies the
wholesaler, retailer, or consumer.
Subpart D—Label Standards
7.51 Firmly affixed requirements.
7.52 Legibility and other requirements for
mandatory information on labels.
7.53 Type size of mandatory information.
7.54 Visibility of mandatory information.
7.55 Language requirements.
7.56 Additional information.
Subpart E—Mandatory Label Information
7.61 What constitutes a label for purposes
of mandatory information.
7.62 Packaging (cartons, coverings, and
cases).
7.63 Mandatory label information.
7.64 Brand name.
7.65 Alcohol content.
7.66 Name and address for domestically
bottled malt beverages that were wholly
fermented in the United States.
7.67 Name and address for domestically
bottled malt beverages that were bottled
after importation.
7.68 Name and address for malt beverages
that are imported in a container.
7.69 Country of origin.
7.70 Net contents.
Subpart F—Restricted Labeling Statements
7.81 General.
Food Allergen Labeling
7.82 Voluntary disclosure of major food
allergens.
7.83 Petitions for exemption from major
food allergen labeling.
Subpart H—Labeling Practices That Are
Prohibited if They Are Misleading
7.121 General.
7.122 Misleading statements or
representations.
7.123 Guarantees.
7.124 Disparaging statements.
7.125 Tests or analyses.
7.126 Depictions of government symbols.
7.127 Depictions simulating government
stamps or relating to supervision.
7.128 Claims related to distilled spirits or
wines.
7.129 Health-related statements.
7.130 Appearance of endorsement.
7.131 The word ‘‘bonded’’ and similar
terms
7.132 Strength claims.
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Subpart L—Recordkeeping and
Substantiation Requirements
7.211 Recordkeeping requirements–
certificates.
7.212 Substantiation requirements.
Subpart M—Penalties and Compromise of
Liability
7.221 Criminal penalties.
7.222 Conditions of basic permit.
7.223 Compromise.
Subpart N—Paperwork Reduction Act
7.231 OMB control numbers assigned under
the Paperwork Reduction Act.
Authority: 27 U.S.C. 205 and 207.
§ 7.07.0
Scope.
This part sets forth requirements that
apply to the labeling and packaging of
malt beverages in containers, including
requirements for label approval and
rules regarding mandatory, regulated,
and prohibited labeling statements.
§ 7.17.1
Subpart G—Prohibited Labeling Practices
7.101 General.
7.102 False or untrue statements.
7.103 Obscene or indecent depictions.
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Subparts J–K—Reserved
Subpart A—General Provisions
Production and Other Claims
7.84 Use of the term ‘‘organic.’’
7.85 Environmental, sustainability, and
similar statements.
7.86 [Reserved].
7.87 Use of the term ‘‘draft.’’
Subpart I—Classes and Types of Malt
Beverages
7.141 Class and type.
7.142 Class designations.
7.143 Class and type—special rules.
7.144 Malt beverages fermented or flavored
with certain traditional ingredients.
7.145 Malt beverages containing less than
0.5 percent alcohol by volume.
7.146 Geographical names.
7.147 Statement of composition.
Definitions.
When used in this part and on forms
prescribed under this part, the following
terms have the meaning assigned to
them in this section, unless the terms
appear in a context that requires a
different meaning. Any other term
defined in the Federal Alcohol
Administration Act (FAA Act) and used
in this part has the same meaning
assigned to it by the FAA Act.
Administrator. The Administrator,
Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
Appropriate TTB officer. An officer or
employee of the Alcohol and Tobacco
Tax and Trade Bureau (TTB) authorized
to perform any function relating to the
administration or enforcement of this
part by the current version of TTB Order
1135.7, Delegation of the
Administrator’s Authorities in 27 CFR
part 7, Labeling of Malt Beverages.
Bottler. Any brewer or wholesaler
who places malt beverages in
containers.
Brand name. The name under which
a malt beverage or a line of malt
beverages is sold.
Certificate holder. The permittee or
brewer whose name, address, and basic
permit number, plant registry number,
or brewer’s notice number appears on
an approved TTB Form 5100.31.
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Certificate of exemption from label
approval. A certificate issued on TTB
Form 5100.31, which authorizes the
bottling of wine or distilled spirits,
under the condition that the product
will under no circumstances be sold,
offered for sale, shipped, delivered for
shipment, or otherwise introduced by
the applicant, directly or indirectly, into
interstate or foreign commerce.
Certificate of label approval (COLA).
A certificate issued on TTB Form
5100.31 that authorizes the bottling of
wine, distilled spirits, and malt
beverages, or the removal of bottled
wine, distilled spirits, and malt
beverages from customs custody for
introduction into commerce, as long as
the product bears labels identical to the
labels appearing on the face of the
certificate, or labels with changes
authorized by TTB on the certificate or
otherwise.
Container. Any can, bottle, box with
an internal bladder, cask, keg, barrel or
other closed receptacle, in any size or
material, that is for use in the sale of
malt beverages at retail.
Customs officer. An officer of U.S.
Customs and Border Protection (CBP) or
any agent or other person authorized by
law to perform the duties of such an
officer.
Distinctive or fanciful name. A
descriptive name or phrase chosen to
identify a malt beverage product on the
label. It does not include a brand name,
class or type designation, statement of
composition, or designation known to
the trade or consumers.
FAA Act. The Federal Alcohol
Administration Act.
Gallon. A U.S. gallon of 231 cubic
inches of malt beverages at 39.1 degrees
Fahrenheit (4 degrees Celsius). All other
liquid measures used are subdivisions
of the gallon as defined.
Interstate or foreign commerce.
Commerce between any State and any
place outside of that State or commerce
within the District of Columbia or
commerce between points within the
same State but through any place
outside of that State.
Keg collar. A disk that is pushed
down over the keg’s bung or tap cover.
Malt beverage. A beverage made by
the alcoholic fermentation of an
infusion or decoction, or combination of
both, in potable brewing water, of
malted barley with hops, or their parts,
or their products, and with or without
other malted cereals, and with or
without the addition of unmalted or
prepared cereals, other carbohydrates or
products prepared therefrom, and with
or without the addition of carbon
dioxide, and with or without other
wholesome products suitable for human
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food consumption. See § 7.5 for
standards applying to the use of
processing methods and flavors in malt
beverage production.
Net contents. The amount, by volume,
of a malt beverage held in a container.
Person. Any individual, corporation,
partnership, association, joint-stock
company, business trust, limited
liability company, or other form of
business enterprise, including a
receiver, trustee, or liquidating agent
and including an officer or employee of
any agency of a State or political
subdivision of a State.
State. One of the 50 States of the
United States, the District of Columbia,
or the Commonwealth of Puerto Rico.
Tap cover. A cap, usually made of
plastic, that fits over the top of the tap
(or bung) of a keg.
TTB. The Alcohol and Tobacco Tax
and Trade Bureau of the Department of
the Treasury.
United States (U.S.). The 50 States,
the District of Columbia, and the
Commonwealth of Puerto Rico.
§ 7.27.2
Territorial extent.
The provisions of this part apply to
the 50 states, the District of Columbia,
and the Commonwealth of Puerto Rico.
§ 7.37.3 General requirements and
prohibitions under the FAA Act.
(a) Certificates of label approval
(COLAs). Subject to the requirements
and exceptions set forth in the
regulations in subpart B of this part, any
brewer or wholesaler who bottles malt
beverages, and any person who removes
malt beverages in containers from
customs custody for sale or any other
commercial purpose, is required to first
obtain from TTB a COLA covering the
label(s) on each container.
(b) Alteration, mutilation, destruction,
obliteration, or removal of labels.
Subject to the requirements and
exceptions set forth in the regulations in
subpart C of this part, it is unlawful to
alter, mutilate, destroy, obliterate, or
remove labels on malt beverage
containers. This prohibition applies to
any person, including retailers, holding
malt beverages for sale in interstate or
foreign commerce or any person holding
malt beverages for sale after shipment in
interstate or foreign commerce.
(c) Labeling requirements for malt
beverages. Subject to the jurisdictional
limits of the FAA Act, as set forth in
§ 7.4, it is unlawful for any person
engaged in business as a brewer,
wholesaler, or importer of malt
beverages, directly or indirectly, or
through an affiliate, to sell or ship, or
deliver for sale or shipment, or
otherwise introduce or receive in
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interstate or foreign commerce, or
remove from customs custody, any malt
beverages in containers unless the malt
beverages are bottled in containers and
the containers are marked, branded, and
labeled in conformity with the
regulations in this part.
(d) Labeled in accordance with this
part. In order to be labeled in
accordance with the regulations in this
part, a container of malt beverages must
be in compliance with the following
requirements:
(1) It must bear one or more labels
meeting the standards for ‘‘labels’’ set
forth in subpart D of this part;
(2) One or more of the labels on the
container must include the mandatory
information set forth in subpart E of this
part;
(3) Claims on the label(s), containers,
and packaging (as defined in § 7.62)
must comply with the rules for
regulated label statements, as
applicable, set forth in subpart F of this
part;
(4) Statements or any other
representations on any malt beverage
label, container, or packaging (as
defined in §§ 7.81(b) and 7.121(b)) may
not violate the regulations in subparts G
and H of this part regarding certain
practices on labeling of malt beverages;
(5) The class and type designation on
the label(s), as well as any designation
appearing on containers or packaging,
must comply with the standards for
classes and types set forth in subpart I
of this part; and
(6) The malt beverage must not be
adulterated within the meaning of the
Federal Food, Drug, and Cosmetic Act.
§ 7.47.4
Act.
Jurisdictional limits of the FAA
(a) Malt beverages sold in interstate or
foreign commerce—(1) General. The
labeling provisions of this part apply to
malt beverages sold or shipped or
delivered for shipment, or otherwise
introduced into or received in any State
from any place outside thereof, only to
the extent that the laws or regulations of
such State impose requirements similar
to the requirements of the regulations in
this part, with respect to the labels and
labeling of malt beverages sold within
that State.
(2) Similar State law. For purposes of
this section, a ‘‘similar’’ State law may
be found in State laws or regulations
that apply specifically to malt beverages
or in State laws or regulations that
provide general labeling requirements
that are not specific to malt beverages.
In order to be ‘‘similar’’ to the Federal
requirements, the State requirements
need not be identical to the Federal
requirements. Nonetheless, if the label
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in question does not violate the laws or
regulations of the State or States into
which the brewer, wholesaler, or
importer is shipping the malt beverages,
it does not violate this part.
(b) Malt beverages not sold in
interstate or foreign commerce. The
regulations in this part do not apply to
domestically bottled malt beverages that
are not and will not be sold, shipped,
delivered for sale or shipment, or
otherwise introduced in interstate or
foreign commerce.
§ 7.57.5
Ingredients and processes.
(a) Use of nonbeverage flavors and
other nonbeverage ingredients
containing alcohol. (1) Nonbeverage
flavors and other nonbeverage
ingredients containing alcohol may be
used in producing a malt beverage
(sometimes referred to as a ‘‘flavored
malt beverage’’). Except as provided in
paragraph (a)(2) of this section, no more
than 49 percent of the overall alcohol
content (determined without regard to
any tolerance otherwise allowed by this
part) of the finished product may be
derived from the addition of
nonbeverage flavors and other
nonbeverage ingredients containing
alcohol. For example, a finished malt
beverage that contains 5.0 percent
alcohol by volume must derive a
minimum of 2.55 percent alcohol by
volume from the fermentation of barley
malt and other materials and may derive
not more than 2.45 percent alcohol by
volume from the addition of
nonbeverage flavors and other
nonbeverage ingredients containing
alcohol.
(2) In the case of malt beverages with
an alcohol content of more than 6
percent by volume (determined without
regard to any tolerance otherwise
allowed by this part), no more than 1.5
percent of the volume of the malt
beverage may consist of alcohol derived
from added nonbeverage flavors and
other nonbeverage ingredients
containing alcohol.
(b) Processing. Malt beverages may be
filtered or otherwise processed in order
to remove color, taste, aroma, bitterness,
or other characteristics derived from
fermentation.
§ 7.67.6 Brewery products not covered by
this part.
Certain fermented products that are
regulated as ‘‘beer’’ under the Internal
Revenue Code (IRC) do not fall within
the definition of a ‘‘malt beverage’’
under the FAA Act and thus are not
subject to this part. See § 7.7 for related
TTB regulations that may apply to these
products. See §§ 25.11 and 27.11 of this
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chapter for the definition of ‘‘beer’’
under the IRC.
(a) Sake´ and similar products. Sake´
and similar products (including
products that fall within the definition
of ‘‘beer’’ under parts 25 and 27 of this
chapter) that fall within the definition of
a ‘‘wine’’ under the FAA Act are
covered by the labeling regulations for
wine in 27 CFR part 4.
(b) Other beers not made with both
malted barley and hops. The regulations
in this part do not cover beer products
that are not made with both malted
barley and hops, or their parts or their
products, or that do not fall within the
definition of a ‘‘malt beverage’’ under
§ 7.1 for any other reason. Bottlers and
importers of alcohol beverages that do
not fall within the definition of malt
beverages, wine, or distilled spirits
under the FAA Act should refer to the
applicable labeling regulations for foods
issued by the U.S. Food and Drug
Administration. See 21 CFR part 101.
applicable Federal and State
requirements, including but not limited
to those highlighted in paragraphs (b)
and (c) of this section.
(b) Ingredient safety. While it remains
the responsibility of the industry
member to ensure that any ingredient
used in production of malt beverages
complies fully with all applicable U.S.
Food and Drug Administration (FDA)
regulations pertaining to the safety of
food ingredients and additives, the
appropriate TTB officer may at any time
request documentation to establish such
compliance.
(c) Containers. While it remains the
responsibility of the industry member to
ensure that containers are made of
suitable materials that comply with all
applicable FDA health and safety
regulations for the packaging of
beverages for consumption, the
appropriate TTB officer may at any time
request documentation to establish such
compliance.
§ 7.77.7 Other TTB labeling regulations
that apply to malt beverages.
§ 7.10
In addition to the regulations in this
part, malt beverages must also comply
with the following TTB labeling
regulations:
(a) Health warning statement.
Alcoholic beverages, including malt
beverages, that contain at least one-half
of one percent alcohol by volume, must
be labeled with a health warning
statement in accordance with the
Alcoholic Beverage Labeling Act of 1988
(ABLA). The regulations implementing
the ABLA are contained in 27 CFR part
16.
(b) Internal Revenue Code
requirements. The labeling and marking
requirements for beer under the Internal
Revenue Code are found in 27 CFR part
25, subpart J (for domestic breweries)
and 27 CFR part 27, subpart E (for
importers).
§ 7.87.8
Malt beverages for export.
Malt beverages that are exported in
bond without payment of tax directly
from a brewery or from customs custody
are not subject to this part. For purposes
of this section, direct exportation in
bond does not include exportation after
malt beverages have been removed for
consumption or sale in the United
States, with appropriate tax
determination or payment.
§ 7.97.9 Compliance with Federal and
State requirements.
(a) General. Compliance with the
requirements of this part relating to the
labeling and bottling of malt beverages
does not relieve industry members from
responsibility for complying with other
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Other related regulations.
(a) TTB regulations. Other TTB
regulations that relate to malt beverages
are listed in paragrpahs (a)(1) through
(9) of this section:
(1) 27 CFR part 1—Basic Permit
Requirements Under the Federal
Alcohol Administration Act,
Nonindustrial Use of Distilled Spirits
and Wine, Bulk Sales and Bottling of
Distilled Spirits;
(2) 27 CFR part 13—Labeling
Proceedings;
(3) 27 CFR part 14—Advertising of
Alcohol Beverage Products;
(4) 27 CFR part 16—Alcoholic
Beverage Health Warning Statement;
(5) 27 CFR part 25—Beer;
(6) 27 CFR part 26—Liquors and
Articles from Puerto Rico and the Virgin
Islands;
(7) 27 CFR part 27—Importation of
Distilled Spirits, Wines, and Beer;
(8) 27 CFR part 28—Exportation of
Alcohol; and
(9) 27 CFR part 71—Rules of Practice
in Permit Proceedings.
(b) Other Federal regulations. The
regulations listed in paragraphs (b)(1)
through (9) of this section issued by
other Federal agencies also may apply:
(1) 7 CFR part 205—National Organic
Program;
(2) 19 CFR part 11—Packing and
Stamping; Marking;
(3) 19 CFR part 102—Rules of Origin;
(4) 19 CFR part 134—Country of
Origin Marking;
(5) 21 CFR part 1—General
Enforcement Provisions, Subpart I, Prior
Notice of Imported Food;
(6) 21 CFR parts 70–82, which pertain
to food and color additives;
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(7) 21 CFR part 101—Food Labeling;
(8) 21 CFR part 110—Current Good
Manufacturing Practice in
Manufacturing, Packing, or Holding
Human Food; and
(9) 21 CFR parts 170–189, which
pertain to food additives and secondary
direct food additives for human
consumption.
§ 7.11
Forms.
(a) General. TTB prescribes and
makes available all forms required by
this part. Any person completing a form
must provide all of the information
required by each form as indicated by
the headings on the form and the
instructions for the form. Each form
must be filed in accordance with this
part and the instructions for the form.
(b) Electronically filing forms. The
forms required by this part can be filed
electronically by using TTB’s online
filing systems: COLAs Online and
Formulas Online. Anyone who intends
to use one of these online filing systems
must first register to use the system by
accessing the TTB website at https://
www.ttb.gov.
(c) Obtaining paper forms. Forms
required by this part are available for
printing through the TTB website
(https://www.ttb.gov) or by mailing a
request to the Alcohol and Tobacco Tax
and Trade Bureau, National Revenue
Center, 550 Main Street, Room 8002,
Cincinnati, OH 45202.
§ 7.12
Delegations of the Administrator.
Most of the regulatory authorities of
the Administrator contained in this part
are delegated to ‘‘appropriate TTB
officers.’’ To find out which officers
have been delegated specific authorities,
see the current version of TTB Order
1135.7, Delegation of the
Administrator’s Authorities in 27 CFR
part 7, Labeling of Malt Beverages.
Copies of this order can be obtained by
accessing the TTB website (https://
www.ttb.gov) or by mailing a request to
the Alcohol and Tobacco Tax and Trade
Bureau, National Revenue Center, 550
Main Street, Room 8002, Cincinnati, OH
45202.
Subpart B—Certificates of Label
Approval
Requirements for Malt Beverages
Bottled in the United States
§ 7.21 Requirement for certificates of label
approval (COLAs) for malt beverages
bottled in the United States.
(a) COLA requirement. Subject to the
requirements and exceptions set forth in
paragraphs (b) and (c) of this section, a
brewer or wholesaler bottling malt
beverages must obtain a COLA covering
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the malt beverages from TTB prior to
bottling the malt beverages or removing
the malt beverages from the premises
where they were bottled.
(b) Malt beverages shipped or sold in
interstate commerce. Persons bottling
malt beverages (other than malt
beverages in customs custody) for
shipment, or delivery for sale or
shipment, into a State (from outside of
that State) are required to obtain a
COLA covering those malt beverages
only if the laws or regulations of the
State require that all malt beverages sold
or otherwise disposed of in such State
be labeled in conformity with the
requirements of subparts D through I of
this part. This requirement applies
when the State has either adopted
subparts D through I of this part in their
entireties or has adopted requirements
identical to those set forth in subparts
D through I of this part. In accordance
with §§ 7.3 and 7.4, malt beverages that
are not subject to the COLA
requirements of this section may still be
subject to the substantive labeling
provisions of subparts D through I of
this part to the extent that the State into
which the malt beverages are being
shipped has similar State laws or
regulations.
(c) Products not shipped or sold in
interstate commerce. Persons bottling
malt beverages that will not be shipped
or delivered for sale or shipment in
interstate or foreign commerce are not
required to obtain a COLA or a
certificate of exemption from label
approval. (Note: A certificate of
exemption from label approval is a
certificate issued by TTB to cover a
wine or distilled spirits product that
will not be sold, offered for sale,
shipped, delivered for shipment, or
otherwise introduced, in interstate or
foreign commerce.)
applicable requirements of the U.S.
Food and Drug Administration with
regard to ingredient safety; or
(3) Relieve the certificate holder from
liability for violations of the FAA Act,
the Alcoholic Beverage Labeling Act,
the Internal Revenue Code, or related
regulations and rulings.
(i) The issuance of a COLA does not
mean that TTB has verified the accuracy
of any representations or claims made
on the label with respect to the product
in the container. It is the responsibility
of the applicant to ensure that all
information on the application is true
and correct, and that all labeling
representations and claims are truthful,
accurate, and not misleading with
respect to the product in the container.
(ii) A malt beverage may be
mislabeled even when the label is
covered by a COLA. For example, if the
label on the container contains
representations that are false or
misleading when applied to the product
in the container, the malt beverage is
not labeled in accordance with the
regulations in this part, even if it is
covered by a COLA.
(c) When to obtain a COLA. The
COLA must be obtained prior to
bottling. No brewer or wholesaler may
bottle malt beverages or remove malt
beverages from the premises where
bottled unless a COLA has been
obtained.
(d) Application for a COLA. The
bottler may apply for a COLA by
submitting an application to TTB on
Form 5100.31, in accordance with the
instructions on the form. The bottler
may apply for a COLA either
electronically by accessing TTB’s online
system, COLAs Online, at https://
www.ttb.gov, or by submitting the paper
form. For procedures regarding the
issuance of COLAs, see part 13 of this
chapter.
§ 7.22 Rules regarding certificates of label
approval (COLAs) for malt beverages
bottled in the United States.
§ 7.23
(a) What a COLA authorizes. An
approved TTB Form 5100.31 authorizes
the bottling of malt beverages covered
by the COLA, as long as the container
bears labels identical to the labels
appearing on the face of the COLA, or
labels with changes authorized by TTB
on the COLA or otherwise. The list of
allowable changes can be found on the
TTB website at https://www.ttb.gov.
(b) What a COLA does not do. Among
other things, the issuance of a COLA
does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from
its responsibility to ensure that all
ingredients used in the production of
the malt beverage comply with
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[Reserved]
Requirements for Malt Beverages
Imported in Containers
§ 7.24 Certificates of label approval
(COLAs) for malt beverages imported in
containers.
(a) Application requirement. Any
person removing malt beverages in
containers from customs custody for
consumption must first apply for and
obtain a COLA covering the malt
beverages from the appropriate TTB
officer.
(b) Release of malt beverages from
customs custody. Malt beverages,
imported in containers, are not eligible
for release from customs custody for
consumption, and no person may
remove such malt beverages from
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customs custody for consumption,
unless the person removing the malt
beverages has obtained and is in
possession of a COLA covering the malt
beverages.
(c) Filing requirements. If filing
electronically, the importer must file
with U.S Customs and Border Protection
(CBP), at the time of filing the customs
entry, the TTB-assigned identification
number of the valid COLA that
corresponds to the label on the brand or
lot of malt beverages being imported. If
the importer is not filing electronically,
the importer must provide a copy of the
COLA to CBP at the time of entry. In
addition, the importer must provide a
copy of the applicable COLA, and proof
of the certificate holder’s authorization
if applicable, upon request by the
appropriate TTB officer or a customs
officer.
(d) Scope of this section. The COLA
requirement imposed by this section
applies only to malt beverages that are
removed for sale or any other
commercial purpose. See 27 CFR 27.49,
27.74, and 27.75 for labeling exemptions
applicable to certain imported samples
of malt beverages.
(e) Relabeling in customs custody.
Containers of malt beverages in customs
custody that are required to be covered
by a COLA but are not labeled in
conformity with a COLA must be
relabeled, under the supervision and
direction of customs officers, prior to
their removal from customs custody for
consumption.
(f) State law. Paragraph (a) through (c)
of this section apply only if the laws or
regulations of the State in which the
malt beverages are withdrawn require
that all malt beverages sold or otherwise
disposed of in such State be labeled in
conformity with the requirements of
subparts D through I of this part. A State
requires that malt beverages be labeled
in conformity with the requirements of
subparts D through I of this part when
the State has either adopted subparts D
through I of this part in their entireties
or has adopted requirements identical to
those set forth in subparts D through I
in this part. In accordance with §§ 7.3
and 7.4, malt beverages that are not
subject to the COLA requirements of
this section may still be subject to the
substantive labeling provisions of
subparts D through I of this part to the
extent that the State into which the malt
beverages are being shipped has similar
State law or regulation.
§ 7.25 Rules regarding certificates of label
approval (COLAs) for malt beverages
imported in containers.
(a) What a COLA authorizes. An
approved TTB Form 5100.31 authorizes
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the use of the labels covered by the
COLA on containers of malt beverages,
as long as the container bears labels
identical to the labels appearing on the
face of the COLA, or labels with changes
authorized by the form or otherwise
authorized by TTB.
(b) What a COLA does not do. Among
other things, the issuance of a COLA
does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from
its responsibility to ensure that all
ingredients used in the production of
the malt beverage comply with
applicable requirements of the U.S.
Food and Drug Administration with
regard to ingredient safety; or
(3) Relieve the certificate holder from
liability for violations of the FAA Act,
the Alcoholic Beverage Labeling Act,
the Internal Revenue Code, or related
regulations and rulings.
(i) The issuance of a COLA does not
mean that TTB has verified the accuracy
of any representations or claims made
on the label with respect to the product
in the container. It is the responsibility
of the applicant to ensure that all
information on the application is true
and correct and that all labeling
representations and claims are truthful,
accurate, and not misleading with
respect to the product in the container.
(ii) Malt beverages may be mislabeled
even when the label is covered by a
COLA. For example, if the label on the
container contains representations that
are false or misleading when applied to
the product in the container the malt
beverage is not labeled in accordance
with the regulations in this part, even if
it is covered by a COLA.
(c) When to obtain a COLA. The
COLA must be obtained prior to the
removal of malt beverages in containers
from customs custody for consumption.
(d) Application for a COLA. The
person responsible for the importation
of malt beverages must obtain approval
of the labels by submitting an
application to TTB on Form 5100.31. A
person may apply for a COLA either
electronically by accessing TTB’s online
system, COLAs Online, at TTB’s website
(https://www.ttb.gov) or by submitting
the paper form. For procedures
regarding the issuance of COLAs, see
part 13 of this chapter.
Administrative Rules
§ 7.27 Presenting certificates of label
approval (COLAs) to Government officials.
A certificate holder must present the
original or a paper or electronic copy of
the appropriate COLA upon the request
of any duly authorized representative of
the United States Government.
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§ 7.28 Formulas, samples, and
documentation.
(a) Prior to or in conjunction with the
review of an application for a certificate
of label approval (COLA) on TTB Form
5100.31, the appropriate TTB officer
may require a bottler or importer to
submit a formula, the results of
laboratory testing of the malt beverage,
or a sample of any malt beverage or
ingredients used in producing a malt
beverage. The appropriate TTB officer
also may request such information after
the issuance of such COLA or in
connection with any malt beverage that
is required to be covered by a COLA. A
formula may be filed electronically by
using Formulas Online, or it may be
submitted on paper on TTB Form
5100.51. See § 7.11 for more information
on forms and Formulas Online.
(b) Upon request of the appropriate
TTB officer, a bottler or importer must
submit a full and accurate statement of
the contents of any container to which
labels are to be or have been affixed, as
well as any other documentation on any
issue pertaining to whether the malt
beverages are labeled in accordance
with this part. TTB may also request
such information after the issuance of
such a COLA, or in connection with any
malt beverage that is required to be
covered by a COLA.
§ 7.29
Personalized labels.
(a) General. Applicants for label
approval may obtain permission from
TTB to make certain changes in order to
personalize labels without having to
resubmit labels for TTB approval.
Personalized labels may contain a
personal message, picture, or other
artwork that is specific to the consumer
who is purchasing the product. For
example, a brewer may offer individual
or corporate customers labels that
commemorate an event such as a
wedding or grand opening.
(b) Application. Any person who
intends to offer personalized labels must
submit a template for the personalized
label with the application for label
approval, and must note on the
application a description of the specific
personalized information that may
change.
(c) Approval of personalized label. If
the application complies with the
regulations, TTB will issue a certificate
of label approval (COLA) with a
qualification allowing the
personalization of labels. The
qualification will allow the certificate
holder to add or change items on the
personalized label such as salutations,
names, graphics, artwork,
congratulatory dates and names, or
event dates without applying for a new
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COLA. All of these items on
personalized labels must comply with
the regulations of this part.
(d) Changes not allowed to
personalized labels. Approval of an
application to personalize labels does
not authorize the addition of any
information that discusses either the
alcohol beverage or characteristics of the
alcohol beverage or that is inconsistent
with or in violation of the provisions of
this part or any other applicable
provision of law or regulations.
Subpart C—Alteration of Labels,
Relabeling, and Adding Information to
Containers
§ 7.41
Alteration of labels.
(a) Prohibition. It is unlawful for any
person to alter, mutilate, destroy,
obliterate or remove any mark, brand, or
label on malt beverages in containers
held for sale in interstate or foreign
commerce, or held for sale after
shipment in interstate or foreign
commerce, except as authorized by
§ 7.42, § 7.43, or § 7.44, or as otherwise
authorized by Federal law.
(b) Authorized relabeling. For
purposes of the relabeling activities
authorized by this subpart, the term
‘‘relabel’’ includes the alteration,
mutilation, destruction, obliteration, or
removal of any existing mark, brand, or
label on the container, as well as the
addition of a new label (such as a sticker
that adds information about the product
or information engraved on the
container) to the container, and the
replacement of a label with a new label
bearing identical information.
(c) Obligation to comply with other
requirements. Authorization to relabel
under this subpart in no way authorizes
the placement of labels on containers
that do not accurately reflect the brand,
bottler, identity, or other characteristics
of the product; nor does it relieve the
person conducting the relabeling
operations from any obligation to
comply the regulations in this part and
with State or local law, or to obtain
permission from the owner of the brand
where otherwise required.
§ 7.42 Authorized relabeling activities by
brewers and importers.
(a) Relabeling at brewery premises.
Brewers may relabel domestically
bottled malt beverages prior to removal
from, and after return to bond at, the
brewery premises, with labels covered
by a certificate of label approval
(COLA,) without obtaining separate
permission from TTB for the relabeling
activity.
(b) Relabeling after removal from
brewery premises. Brewers may relabel
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domestically bottled malt beverages
after removal from brewery premises
with labels covered by a COLA, without
obtaining separate permission from TTB
for the relabeling activity.
(c) Relabeling in customs custody.
Under the supervision of U.S. customs
officers, imported malt beverages in
containers in customs custody may be
relabeled without obtaining separate
permission from TTB for the relabeling
activity. Such containers must bear
labels covered by a COLA upon their
removal from customs custody for
consumption. See § 7.24(b).
(d) Relabeling after removal from
customs custody. Imported malt
beverages in containers may be
relabeled by the importer thereof after
removal from customs custody without
obtaining separate permission from TTB
for the relabeling activity, as long as the
labels are covered by a COLA.
§ 7.43 Relabeling activities that require
separate written authorization from TTB.
Any persons holding malt beverages
for sale who need to relabel the
containers but are not eligible to obtain
a COLA to cover the labels that they
wish to affix to the containers may
apply for written permission for the
relabeling of malt beverage containers.
The appropriate TTB officer may permit
relabeling of malt beverages in
containers if the facts show that the
relabeling is for the purpose of
compliance with the requirements of
this part or State law. The written
application must include copies of the
original and proposed new labels; the
circumstances of the request, including
the reason for relabeling; the number of
containers to be relabeled; the location
where the relabeling will take place; and
the name and address of the person who
will be conducting the relabeling
operations.
§ 7.44 Adding a label or other information
to a container that identifies the wholesaler,
retailer, or consumer.
Any label or other information that
identifies the wholesaler, retailer, or
consumer of the malt beverage may be
added to containers (by the addition of
stickers, engraving, stenciling, etc.)
without prior approval from the
appropriate TTB officer and without
being covered by a certificate of label
approval. Such information may be
added before or after the containers are
removed from brewery premises or
released from customs custody. The
information added:
(a) May not violate the provisions of
subparts F, G, and H of this part;
(b) May not contain any reference to
the characteristics of the product; and
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(c) May not be added to the container
in such a way that it obscures any other
label on the container.
Subpart D—Label Standards
§ 7.51
Firmly affixed requirements.
(a) General rule. Except as otherwise
provided in paragraph (b) of this
section, any label that is not an integral
part of the container must be affixed to
the container in such a way that it
cannot be removed without thorough
application of water or other solvents.
(b) Exception for keg labels. A label
on a keg with a capacity of 10 gallons
or more that is in the form of a keg collar
or tap cover is not required to be firmly
affixed, provided that the name of the
bottler of the malt beverage is
permanently or semi-permanently stated
on the keg in the form of embossing,
engraving, stamping, or through the use
of a sticker or ink jet method. This
section in no way affects the
requirements of part 16 of this chapter
regarding the mandatory health warning
statement.
§ 7.52 Legibility and other requirements
for mandatory information on labels.
(a) Readily legible. Mandatory
information on labels must be readily
legible to potential consumers under
ordinary conditions.
(b) Separate and apart. Mandatory
information on labels, except brand
names, must be separate and apart from
any additional information. This does
not preclude the addition of brief
optional phrases of additional
information as part of the class or type
designation (such as ‘‘premium malt
beverage’’), the name and address
statement (such as ‘‘Proudly brewed and
bottled by ABC Brewing Co. in
Pittsburgh, PA, for over 30 years’’), or
other information required by § 7.63(a)
as long as the additional information
does not detract from the prominence of
the mandatory information. The
statements required by § 7.63(b) may not
include additional information.
(c) Contrasting background.
Mandatory information must appear in
a color that contrasts with the
background on which it appears, except
that if the net contents or the name and
address are blown into a glass container,
they need not be contrasting. The color
of the container and of the malt
beverages must be taken into account if
the label is transparent or if mandatory
label information is etched, engraved,
sandblasted, or otherwise carved into
the surface of the container or is
branded, stenciled, painted, printed, or
otherwise directly applied on to the
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surface of the container. Examples of
acceptable contrasts are:
(1) Black lettering appearing on a
white or cream background; or
(2) White or cream lettering appearing
on a black background.
(d) Capitalization. Except for the
aspartame statement when required by
§ 7.63(b)(4), which must appear in all
capital letters, mandatory information
may appear in all capital letters, in all
lower case letters, or in mixed-case
using both capital and lower-case
letters.
§ 7.53
Type size of mandatory information.
All capital and lowercase letters in
statements of mandatory information on
labels must meet the following type size
requirements.
(a) Minimum type size—(1)
Containers of more than one-half pint.
All mandatory information (including
the alcohol content statement) must be
in script, type, or printing that is at least
two millimeters in height.
(2) Containers of one-half pint or less.
All mandatory information (including
the alcohol content statement) must be
in script, type, or printing that is at least
one millimeter in height.
(b) Maximum type size for alcohol
content statement—(1) Containers of
more than 40 fluid ounces. The alcohol
content statement may not appear in
script, type, or printing that is more
than four millimeters in height on
containers of malt beverages of more
than 40 fluid ounces.
(2) Containers of 40 fluid ounces or
less. The alcohol content statement may
not appear in script, type, or printing
that is more than three millimeters in
height on containers of malt beverages
of 40 fluid ounces or less.
§ 7.54
Visibility of mandatory information.
Mandatory information on a label
must be readily visible and may not be
covered or obscured in whole or in part.
See § 7.62 for rules regarding packaging
of containers (including cartons,
coverings, and cases). See part 14 of this
chapter for regulations pertaining to
advertising materials.
§ 7.55
Language requirements.
(a) General. Mandatory information
must appear in the English language,
with the exception of the brand name
and except as provided in paragraphs (c)
and (d) of this section.
(b) Foreign languages. Additional
statements in a foreign language,
including translations of mandatory
information that appears elsewhere in
English on the label, are allowed on
labels and containers as long as they do
not in any way conflict with, or
contradict, the requirements of this part.
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(c) Malt beverages for consumption in
the Commonwealth of Puerto Rico.
Mandatory information may be stated
solely in the Spanish language on labels
of malt beverages bottled for
consumption within the Commonwealth
of Puerto Rico.
(d) Exception for country of origin
statements. The country of origin
statement for malt beverages may appear
in a language other than English when
allowed by U.S. Customs and Border
Protection regulations.
§ 7.56
Additional information.
Information (other than mandatory
information) that is truthful, accurate,
and specific, and that does not violate
subpart F, G, or H of this part, may
appear on labels. Such additional
information may not conflict with,
modify, qualify or restrict mandatory
information in any manner.
§ 7.62 Packaging (cartons, coverings, and
cases).
Subpart E—Mandatory Label
Information
§ 7.61 What constitutes a label for
purposes of mandatory information.
(a) Label. Certain information, as
outlined in § 7.63, must appear on a
label. When used in this part for
purposes of determining where
mandatory information must appear, the
term ‘‘label’’ includes:
(1) Material affixed to the container,
whether made of paper, plastic, film, or
other matter;
(2) For purposes of the net contents
statement and the name and address
statement only, information blown,
embossed, or molded into the container
as part of the process of manufacturing
the container;
(3) Information etched, engraved,
sandblasted, or otherwise carved into
the surface of the container;
(4) Information branded, stenciled,
painted, printed, or otherwise directly
applied on to the surface of the
container; and
(5) Information on a keg collar or a tap
cover of a keg, only if it includes
mandatory information that is not
repeated elsewhere on a label firmly
affixed to the container and only if it
meets the requirements of § 7.51.
(b) Information appearing elsewhere
on the container. Information appearing
on the following parts of the container
is subject to all of the restrictions and
prohibitions set forth in subparts F, G
and H of this part, but will not satisfy
any requirements for mandatory
information that must appear on labels
in this part:
(1) Material affixed to, or information
appearing on, the bottom surface of the
container;
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(2) Caps, corks, or other closures
unless authorized to bear mandatory
information by the appropriate TTB
officer; and
(3) Foil or heat shrink bottle capsules.
(c) Materials not firmly affixed to the
container. Any materials that
accompany the container to the
consumer but are not firmly affixed to
the container, including booklets,
leaflets, and hang tags, are not ‘‘labels’’
for purposes of this part. Such materials
are instead subject to the advertising
regulations in part 14 of this chapter.
(a) General. The term ‘‘packaging’’
includes any covering, carton, case,
carrier, or other packaging of malt
beverage containers used for sale at
retail, but does not include shipping
cartons or cases that are not intended to
accompany the container to the
consumer.
(b) Prohibition. Any packaging of malt
beverage containers may not contain
any statement, design, device, or
graphic, pictorial, or emblematic
representation that violates the
provisions of subpart F, G, or H of this
part.
(c) Requirements for closed
packaging. If containers are enclosed in
closed packaging, including sealed
opaque coverings, cartons, cases,
carriers, or other packaging used for sale
at retail, such packaging must bear all
mandatory label information required
on the label under § 7.63.
(1) Packaging is considered closed if
the consumer must open, rip, untie,
unzip, or otherwise manipulate the
package to remove the container in
order to view any of the mandatory
information.
(2) Packaging is not considered closed
if a consumer could view all of the
mandatory information on the container
by merely lifting the container up, or if
the packaging is transparent or designed
in a way that all of the mandatory
information can be easily read by the
consumer without having to open, rip,
untie, unzip, or otherwise manipulate
the package.
(d) Packaging that is not closed. The
following requirements apply to
packaging that is not closed.
(1) The packaging may display any
information that is not in conflict with
the label on the container that is inside
the packaging.
(2) If the packaging displays a brand
name, it must display the brand name
in its entirety. For example, if a brand
name is required to be modified with
additional information on the container,
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the packaging must also display the
same modifying language.
(3) If the packaging displays a class or
type designation it must be identical to
the class or type designation appearing
on the container. For example, if the
packaging displays a class or type
designation for a specialty product for
which a statement of composition is
required on the container, the packaging
must include the statement of
composition as well.
(e) Labeling of containers within the
packaging. The container within the
packaging is subject to all labeling
requirements of this part, including
mandatory labeling information
requirements, regardless of whether the
packaging bears such information.
§ 7.63
Mandatory label information.
(a) Mandatory information. Malt
beverage containers must bear a label or
labels (as defined in § 7.61(a))
containing the following information:
(1) Brand name, in accordance with
§ 7.64;
(2) Class, type, or other designation,
in accordance with subpart I of this part;
(3) Alcohol content, in accordance
with § 7.65, for malt beverages that
contain any alcohol derived from added
nonbeverage flavors or other added
nonbeverage ingredients (other than
hops extract) containing alcohol;
(4) Name and address of the bottler or
importer (which may be blown,
embossed, or molded into the container
as part of the process of manufacturing
the container), in accordance with
§ 7.66, § 7.67, or § 7.68 as applicable;
and
(5) Net contents (which may be
blown, embossed, or molded into the
container as part of the process of
manufacturing the container), in
accordance with § 7.70.
(b) Disclosure of certain ingredients.
Certain ingredients must be declared on
a label without the inclusion of any
additional information as part of the
statement as follows:
(1) FD&C Yellow No. 5. If a malt
beverage contains the coloring material
FD&C Yellow No. 5, the label must
include a statement to that effect, such
as ‘‘FD&C Yellow No. 5’’ or ‘‘Contains
FD&C Yellow No. 5.’’
(2) Cochineal extract or carmine. If a
malt beverage contains the color
additive cochineal extract or the color
additive carmine, the label must include
a statement to that effect, using the
respective common or usual name (such
as, ‘‘contains cochineal extract’’ or
‘‘contains carmine’’). This requirement
applies to labels when either of the
coloring materials is used in a malt
beverage that is removed from bottling
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premises or from customs custody on or
after April 16, 2013.
(3) Sulfites. If a malt beverage
contains 10 or more parts per million of
sulfur dioxide or other sulfiting agent(s)
measured as total sulfur dioxide, the
label must include a statement to that
effect. Examples of acceptable
statements are ‘‘Contains sulfites’’ or
‘‘Contains (a) sulfiting agent(s)’’ or a
statement identifying the specific
sulfiting agent. The alternative terms
‘‘sulphites’’ or ‘‘sulphiting’’ may be
used.
(4) Aspartame. If the malt beverage
contains aspartame, the label must
include the following statement, in
capital letters, separate and apart from
all other information:
‘‘PHENYLKETONURICS: CONTAINS
PHENYLALANINE.’’
§ 7.64
Brand name.
(a) Requirement. The malt beverage
label must include a brand name. If the
malt beverage is not sold under a brand
name, then the name of the bottler or
importer, as applicable, appearing in the
name and address statement is treated
as the brand name.
(b) Misleading brand names. Labels
may not include any misleading brand
names. A brand name is misleading if it
creates (by itself or in association with
other printed or graphic matter) any
erroneous impression or inference as to
the age, origin, identity, or other
characteristics of the malt beverage. A
brand name that would otherwise be
misleading may be qualified with the
word ‘‘brand’’ or with some other
qualification if the appropriate TTB
officer determines that the qualification
dispels any misleading impression that
might otherwise be created.
§ 7.65
Alcohol content.
(a) General. Alcohol content and the
percentage and quantity of the original
gravity or extract may be stated on any
malt beverage label. When alcohol
content is stated, it must be stated as
prescribed in paragraph (b) of this
section.
(b) How the alcohol content must be
expressed. The following rules apply to
both mandatory and optional statements
of alcohol content.
(1) A statement of alcohol content
must be expressed as a percentage of
alcohol by volume and not by proof, by
a range, or by maximums or minimums.
Other truthful, accurate, and specific
factual representations of alcohol
content, such as alcohol by weight, may
be made, as long as they appear together
with, and as part of, the statement of
alcohol content as a percentage of
alcohol by volume.
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(2) For malt beverages containing one
half of one percent (0.5 percent) or more
alcohol by volume, statements of
alcohol content must be expressed to
the nearest one-tenth of a percentage
point, subject to the tolerance permitted
by paragraph (c) of this section. For malt
beverages containing less than one half
of one percent alcohol by volume,
alcohol content may be expressed either
to the nearest one-tenth or the nearest
one-hundredth of a percentage point,
and such statements are not subject to
any tolerance. See paragraph (e) of this
section for the rules applicable to such
statements.
(3)(i) The alcohol content statement
must be expressed in one of the
following formats:
(A) ‘‘Alcohol ll percent by
volume’’;
(B) ‘‘ll percent alcohol by volume’’;
or
(C) ‘‘Alcohol by volume: ll
percent.’’
(ii) Any of the words or symbols may
be enclosed in parentheses and
authorized abbreviations may be used
with or without a period. The alcohol
content statement does not have to
appear with quotation marks.
(4) The statements listed in paragraph
(b)(3) of this section must appear as
shown, except that the following
abbreviations may be used: Alcohol may
be abbreviated as ‘‘alc’’; percent may be
represented by the percent symbol ‘‘%’’;
alcohol and volume may be separated
by a slash ‘‘/’’ in lieu of the word ‘‘by’’;
and volume may be abbreviated as
‘‘vol’’.
(5) Examples. The following are
examples of alcohol content statements
that comply with the requirements of
this part:
(i) ‘‘4.2% alc/vol’’;
(ii) ‘‘Alc. 4.0 percent by vol.’’;
(iii) ‘‘Alc 4% by vol’’; and
(iv) ‘‘5.9% Alcohol by Volume.’’
(c) Tolerances. Except as provided by
paragraph (d) of this section, a tolerance
of up to one percentage point will be
permitted, either above or below the
stated alcohol content, for malt
beverages containing 0.5 percent or
more alcohol by volume. However, any
malt beverage that is labeled as
containing 0.5 percent or more alcohol
by volume may not contain less than 0.5
percent alcohol by volume, regardless of
any tolerance. The tolerance provided
by this paragraph does not apply in
determining compliance with the
provisions of § 7.5 regarding the
percentage of alcohol derived from
added nonbeverage flavors and other
nonbeverage ingredients containing
alcohol.
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(d) Low alcohol and reduced alcohol.
The terms ‘‘low alcohol’’ or ‘‘reduced
alcohol’’ may be used only on labels of
malt beverages containing less than 2.5
percent alcohol by volume. The actual
alcohol content may not equal or exceed
2.5 percent alcohol by volume,
regardless of any tolerance permitted by
paragraph (c) of this section.
(e) Non-alcoholic. The term ‘‘nonalcoholic’’ may be used on labels of malt
beverages only if the statement
‘‘contains less than 0.5 percent (or
0.5%) alcohol by volume’’ appears
immediately adjacent to it, in readily
legible printing, and on a completely
contrasting background. No tolerances
are permitted for malt beverages labeled
as ‘‘non-alcoholic’’ and containing less
than 0.5 percent alcohol by volume. A
malt beverage may not be labeled with
an alcohol content of 0.0 percent
alcohol by volume, unless it is also
labeled as ‘‘alcohol free’’ in accordance
with paragraph (f) of this section, and
contains no alcohol.
(f) Alcohol free. The term ‘‘alcohol
free’’ may be used only on malt
beverages containing no alcohol. No
tolerances are permitted for ‘‘alcohol
free’’ malt beverages.
§ 7.66 Name and address for domestically
bottled malt beverages that were wholly
fermented in the United States.
(a) General. Domestically bottled malt
beverages that were wholly fermented in
the United Sates and contain no
imported malt beverages must be
labeled in accordance with this section.
(See §§ 7.67 and 7.68 for name and
address requirements applicable to malt
beverages that are not wholly fermented
in the United States.)
(b) Mandatory statement. A label on
the container must state the name and
address of the bottler, in accordance
with the rules set forth in this section.
(c) Form of address. The address
consists of the city and State and must
be consistent with the information
reflected on the brewer’s notice required
under part 25 of this chapter. Addresses
may, but are not required to, include
additional information such as street
names, counties, zip codes, phone
numbers, and website addresses. The
postal abbreviation of the State name
may be used; for example, California
may be abbreviated as CA.
(d) Optional statements. The bottler
may, but is not required to, be identified
by a phrase describing the function
performed by that person, such as
‘‘bottled by,’’ ‘‘canned by,’’ ‘‘packed
by,’’ or ‘‘filled by,’’ followed by the
name and address of the bottler. If one
person performs more than one
function, the label may so indicate (for
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example, ‘‘brewed and bottled by XYZ
Brewery.’’) If different functions are
performed by more than one person,
statements on the label may not create
the misleading impression that the
different functions were performed by
the same person. The appropriate TTB
officer may require specific information
about the functions performed if
necessary to prevent a misleading
impression on the label.
(e) Principal place of business. The
bottler’s principal place of business may
be shown in lieu of the actual place
where the malt beverage was bottled if
the address shown is a location where
a bottling operation takes place. The
appropriate TTB officer may disapprove
the listing of a principal place of
business if its use would create a false
or misleading impression as to the
geographic origin of the malt beverage.
See 27 CFR 25.141 and 25.142 for
coding requirements applicable in these
circumstances.
(f) Multiple breweries under the same
ownership. If two or more breweries are
owned or operated by the same person,
the place where the malt beverage is
bottled within the meaning of paragraph
(a) of this section may be shown in one
of the following two ways:
(1) Listing of where bottled. The place
where the malt beverage is bottled may
be shown as the only location on the
label; or
(2) Listing of all brewer’s locations.
The place where the malt beverage is
bottled may appear in a listing of the
locations of breweries owned by that
person if the place of bottling is not
given less emphasis than any of the
other locations. See 27 CFR 25.141 and
25.142 for coding requirements
applicable in these circumstances.
(g) Malt beverages bottled for another
person. (1) If malt beverages are brewed
and bottled for another person, the label
may state, in addition to (but not in lieu
of) the name and address of the bottler,
the name and address of such other
person, immediately preceded by the
words ‘‘brewed and bottled for’’ or
‘‘bottled for’’ or another similar
appropriate phrase. Such statements
must clearly indicate the relationship
between the two persons (for example,
contract brewing).
(2) If the same brand of malt beverage
is brewed and bottled by two or more
breweries that are not under the same
ownership, the label for each brewery
may set forth all the locations where
bottling takes place, as long as the label
uses the actual location (and not the
principal place of business) and as long
as the nature of the arrangement is
clearly set forth.
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(h) Use of trade names. The name of
the person appearing on the label may
be the trade name or the operating
name, as long as it is identical to a trade
or operating name appearing on the
brewer’s notice, and as long as use of
that name would not create a misleading
impression as to the age, origin, or
identity of the product. For example, if
a brewery authorizes the use of its trade
name by another brewery that is not
under the same ownership, that trade
name may not be used on a label in a
way that tends to mislead consumers as
to the identity or location of the bottler.
§ 7.67 Name and address for domestically
bottled malt beverages that were bottled
after importation.
(a) General. This section applies to
domestically bottled malt beverages that
were bottled after importation. See
§ 7.68 for name and address
requirements applicable to imported
malt beverages that are imported in a
container. See 19 CFR parts 102 and 134
for U.S. Customs and Border Protection
country of origin marking requirements.
(b) Malt beverages that were subject to
blending or other production activities
after importation. Malt beverages that
were subject, after importation, to
blending or other production may not
bear an ‘‘imported by’’ statement on the
label, but must instead be labeled in
accordance with the rules set forth in
§ 7.66 with regard to mandatory and
optional labeling statements.
(c) Malt beverages bottled after
importation without blending or other
production activities. The label on malt
beverages that are bottled without being
subject to blending or other production
activities in the United States after the
malt beverages were imported state
must state the words ‘‘imported by’’ or
a similar appropriate phrase, followed
by the name and address of the
importer. The label must also state the
words ‘‘bottled by’’ or ‘‘packed by,’’
followed by the name and address of the
bottler, except that the following
phrases are acceptable in lieu of the
name and address of the bottler under
the circumstances set forth below:
(1) If the malt beverages were bottled
for the person responsible for the
importation, the words ‘‘imported and
bottled (canned, packed or filled) in the
United States for’’ (or a similar
appropriate phrase) followed by the
name and address of the principal place
of business in the United States of the
person responsible for the importation;
(2) If the malt beverages were bottled
by the person responsible for the
importation, the words ‘‘imported and
bottled (canned, packed or filled) in the
United States by’’ (or a similar
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appropriate phrase) followed by the
name and address of the principal place
of business in the United States of the
person responsible for the importation;
(3) In the situations set forth in
paragraphs (c)(1) and (2) of this section,
the address shown on the label may be
that of the principal place of business of
the importer who is also the bottler,
provided that the address shown is a
location where bottling takes place.
(d) Use of trade names. A trade name
may be used if the trade name is listed
on the importer’s basic permit and if its
use on the label would not create any
misleading impression as to the age,
origin, or identity of the product. In
addition, the label may, but is not
required to, state the name and
principal place of business of the
foreign manufacturer, bottler, or
shipper.
§ 7.68 Name and address for malt
beverages that are imported in a container.
(a) General. This section applies to
malt beverages that are imported in a
container, as defined in § 7.1. See § 7.67
for rules regarding name and address
requirements applicable to malt
beverages that are domestically bottled
after importation. See 19 CFR parts 102
and 134 for U.S. Customs and Border
Protection country of origin marking
requirements.
(b) Mandatory labeling statement. The
label on malt beverages imported in
containers, as defined in § 7.1, must
state the words ‘‘imported by’’ or a
similar appropriate phrase, followed by
the name and address of the importer.
(1) For purposes of this section, the
importer is the holder of the importer’s
basic permit that either makes the
original Customs entry or is the person
for whom such entry is made, or the
holder of the importer’s basic permit
that is the agent, distributor, or
franchise holder for the particular brand
of imported alcohol beverages and that
places the order abroad.
(2) The address of the importer must
be stated as the city and State of the
principal place of business and must be
consistent with the address reflected on
the importer’s basic permit. Addresses
may, but are not required to, include
additional information such as street
names, counties, zip codes, phone
numbers, and website addresses. The
postal abbreviation of the State name
may be used; for example, California
may be abbreviated as CA.
§ 7.69
Country of origin.
(a) Pursuant to U.S. Customs and
Border Protection (CBP) regulations at
19 CFR parts 102 and 134, a country of
origin statement must appear on the
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container of malt beverages imported in
containers or bottled in the United
States after importation. Labeling
statements with regard to the country of
origin must be consistent with CBP
regulations. The determination of the
country (or countries) of origin, for
imported malt beverages, as well as for
blends of imported malt beverages with
domestically fermented malt beverages,
must comply with CBP regulations.
(b) It is the responsibility of the
importer or bottler, as appropriate, to
ensure compliance with the country of
origin marking requirement, both when
malt beverages are imported in
containers and when imported malt
beverages are subject to bottling,
blending, or production activities in the
United States. Industry members may
seek a ruling from CBP for a
determination of the country of origin
for their product.
§ 7.70
Net contents.
The following rules apply to the net
contents statement required by § 7.63.
(a) The volume of malt beverage in the
container must appear on a label as a
net contents statement using the
following measures:
(1) If less than one pint, the net
contents must be stated in fluid ounces
or fractions of a pint.
(2) If one pint, one quart, or one
gallon, the net contents must be so
stated.
(3) If more than one pint, but less than
one quart, the net contents must be
stated in fractions of a quart, or in pints
and fluid ounces.
(4) If more than one quart, but less
than one gallon, the net contents must
be stated in fractions of a gallon, or in
quarts, pints, and fluid ounces.
(5) If more than one gallon, the net
contents must be stated in gallons and
fractions thereof.
(b) All fractions must be expressed in
their lowest denominations.
(c) Metric measures may be used in
addition to, but not in lieu of, the U.S.
standard measures and must appear in
the same field of vision.
Subpart F—Restricted Labeling
Statements
§ 7.81
General.
(a) Application. The labeling
practices, statements, and
representations in this subpart may be
used on malt beverage labels only when
used in compliance with this subpart. In
addition, if any of the practices,
statements, or representations in this
subpart are used elsewhere on
containers or in packaging, they must
comply with the requirements of this
subpart. For purposes of this subpart:
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(1) The term ‘‘label’’ includes all
labels on malt beverage containers on
which mandatory information may
appear, as set forth in § 7.61(a), as well
as any other label on the container.
(2) The term ‘‘container’’ includes all
parts of the malt beverage container,
including any part of a malt beverage
container on which mandatory
information may appear, as well as
those parts of the container on which
information does not satisfy mandatory
labeling requirements, as set forth in
§ 7.61(b).
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering, or other packaging of such
containers used for sale at retail, but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of this subpart, the term
‘‘statement or representation’’ includes
any statement, design, device, or
representation, and includes pictorial or
graphic designs or representations as
well as written ones. The term
‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
Food Allergen Labeling
§ 7.82 Voluntary disclosure of major food
allergens.
(a) Definitions. For purposes of this
section, the following terms have the
meanings indicated.
(1) Major food allergen means any of
the following:
(i) Milk, egg, fish (for example, bass,
flounder, or cod), Crustacean shellfish
(for example, crab, lobster, or shrimp),
tree nuts (for example, almonds, pecans,
or walnuts), wheat, peanuts, and
soybeans; or
(ii) A food ingredient that contains
protein derived from a food specified in
paragraph (a)(1)(i) of this section,
except:
(A) Any highly refined oil derived
from a food specified in paragraph
(a)(1)(i) of this section and any
ingredient derived from such highly
refined oil; or
(B) A food ingredient that is exempt
from major food allergen labeling
requirements pursuant to a petition for
exemption approved by the Food and
Drug Administration (FDA) under 21
U.S.C. 343(w)(6) or pursuant to a notice
submitted to the FDA under 21 U.S.C.
343(w)(7), provided that the food
ingredient meets the terms or
conditions, if any, specified for that
exemption.
(2) Name of the food source from
which each major food allergen is
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derived means the name of the food as
listed in paragraph (a)(1)(i) of this
section, except that:
(i) In the case of a tree nut, it means
the name of the specific type of nut (for
example, almonds, pecans, or walnuts);
(ii) In the case of Crustacean shellfish,
it means the name of the species of
Crustacean shellfish (for example, crab,
lobster, or shrimp); and
(iii) The names ‘‘egg’’ and ‘‘peanuts,’’
as well as the names of the different
types of tree nuts, may be expressed in
either the singular or plural form, and
the names ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’
may be used instead of ‘‘soybeans.’’
(b) Voluntary labeling standards.
Major food allergens used in the
production of a malt beverage product
may, on a voluntary basis, be declared
on a label. However, if any one major
food allergen is voluntarily declared, all
major food allergens used in production
of the malt beverage product, including
major food allergens used as fining or
processing agents, must be declared,
except when covered by a petition for
exemption approved by the appropriate
TTB officer under § 7.83. The major
food allergens declaration must consist
of the word ‘‘Contains’’ followed by a
colon and the name of the food source
from which each major food allergen is
derived (for example, ‘‘Contains: egg’’).
(c) Cross reference. For mandatory
labeling requirements applicable to malt
beverage products containing FD&C
Yellow No. 5, sulfites, aspartame, and
cochineal extract or carmine, see
§ 7.63(b).
§ 7.83 Petitions for exemption from major
food allergen labeling.
(a) Submission of petition. Any
person may petition the appropriate
TTB officer to exempt a particular
product or class of products from the
labeling requirements of § 7.82. The
burden is on the petitioner to provide
scientific evidence (as well as the
analytical method used to produce the
evidence) that demonstrates that the
finished product or class of products, as
derived by the method specified in the
petition, either:
(1) Does not cause an allergic
response that poses a risk to human
health; or
(2) Does not contain allergenic protein
derived from one of the foods identified
in § 7.82(a)(1)(i), even though a major
food allergen was used in production.
(b) Decision on petition. TTB will
approve or deny a petition for
exemption submitted under paragraph
(a) of this section in writing within 180
days of receipt of the petition. If TTB
does not provide a written response to
the petitioner within that 180-day
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period, the petition will be deemed
denied unless an extension of time for
decision is mutually agreed upon by the
appropriate TTB officer and the
petitioner. TTB may confer with the
Food and Drug Administration (FDA) on
petitions for exemption, as appropriate
and as FDA resources permit. TTB may
require the submission of product
samples and other additional
information in support of a petition;
however, unless required by TTB, the
submission of samples or additional
information by the petitioner after
submission of the petition will be
treated as the withdrawal of the initial
petition and the submission of a new
petition. An approval or denial under
this section will constitute final agency
action.
(c) Resubmission of a petition. After a
petition for exemption is denied under
this section, the petitioner may resubmit
the petition along with supporting
materials for reconsideration at any
time. TTB will treat this submission as
a new petition.
(d) Availability of information—(1)
General. TTB will promptly post to its
website (https://www.ttb.gov) all
petitions received under this section as
well as TTB’s responses to those
petitions. Any information submitted in
support of the petition that is not posted
to the TTB website will be available to
the public pursuant to the Freedom of
Information Act (5 U.S.C. 552), except
where a request for confidential
treatment is granted under paragraph
(d)(2) of this section.
(2) Requests for confidential treatment
of business information. A person who
provides trade secrets or other
commercial or financial information in
connection with a petition for
exemption under this section may
request that TTB give confidential
treatment to that information. A failure
to request confidential treatment at the
time the information in question is
submitted to TTB will constitute a
waiver of confidential treatment. A
request for confidential treatment of
information under this section must
conform to the following standards:
(i) The request must be in writing;
(ii) The request must clearly identify
the information to be kept confidential;
(iii) The request must relate to
information that constitutes trade
secrets or other confidential,
commercial, or financial information
regarding the business transactions of an
interested person, the disclosure of
which would cause substantial harm to
the competitive position of that person;
(iv) The request must set forth the
reasons why the information should not
be disclosed, including the reasons the
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disclosure of the information would
prejudice the competitive position of
the interested person; and
(v) The request must be supported by
a signed statement by the interested
person, or by an authorized officer or
employee of that person, certifying that
the information in question is a trade
secret or other confidential, commercial,
or financial information and that the
information is not already in the public
domain.
Production and Other Claims
§ 7.84
Use of the term ‘‘organic.’’
Use of the term ‘‘organic’’ is permitted
if any such use complies with the
United States Department of Agriculture
(USDA) National Organic Program rules
(7 CFR part 205), as interpreted by the
USDA.
§ 7.85 Environmental, sustainability, and
similar statements.
Statements related to environmental
or sustainable agricultural practices,
social justice principles, and other
similar statements (such as, ‘‘Produced
using 100% solar energy’’ or ‘‘Carbon
Neutral’’) may appear as long as the
statements are truthful, specific and not
misleading. Statements or logos
indicating environmental, sustainable
agricultural, or social justice
certification (such as, ‘‘Biodyvin,’’
‘‘Salmon-Safe,’’ or ‘‘Fair Trade
Certified’’) may appear on malt
beverages that are actually certified by
the appropriate organization.
§ 7.86
[Reserved]
§ 7.87
Use of the term ‘‘draft.’’
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§ 7.101
Sfmt 4702
General.
(a) Application. The prohibitions set
forth in this subpart apply to any malt
beverage label, container, or packaging.
For purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on malt beverage containers on
which mandatory information may
appear, as set forth in § 7.61(a), as well
as any other label on the container;
(2) The term ‘‘container’’ includes all
parts of the malt beverage container,
including any part of a malt beverage
container on which mandatory
information may appear, as well as
those parts of the container on which
information does not satisfy mandatory
labeling requirements as set forth in
§ 7.61(b); and
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering, or other packaging of such
containers used for sale at retail but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of the practices in this subpart,
the term ‘‘statement or representation’’
includes any statement, design, device,
or representation, and includes pictorial
or graphic designs or representations as
well as written ones. The term
‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
§ 7.102
(a) General. A malt beverage may be
labeled with the term ‘‘draft’’ only if it
complies with the requirements of
paragraph (b)(1), (2), or (3) of this
section. The word ‘‘draft’’ may be
spelled ‘‘draft’’ or ‘‘draught.’’
(b) Requirements. (1) Malt beverages
in a container of one gallon or more that
dispenses the malt beverages through a
tap, spigot, faucet, or similar device may
be described as draft.
(2) Malt beverages packaged in
customary bottles or cans may be
described as draft if they are
unpasteurized and require refrigeration
for preservation, or if the beer has been
sterile filtered and aseptically filled (but
not pasteurized).
(3) Malt beverages that have been
pasteurized that are packaged in
customary bottles or cans may be
described as ‘‘draft brewed,’’ ‘‘draft beer
flavor,’’ ‘‘old time on-tap taste,’’ or with
a similar expression only if the word
‘‘pasteurized’’ appears conspicuously on
the label or container.
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Subpart G—Prohibited Labeling
Practices
False or untrue statements.
Malt beverage labels, containers, or
packaging may not contain any
statement or representation that is false
or untrue in any particular.
§ 7.103
Obscene or indecent depictions.
Malt beverage labels, containers, or
packaging may not contain any
statement or representation that is
obscene or indecent.
Subpart H—Labeling Practices That
Are Prohibited if They Are Misleading
§ 7.121
General.
(a) Application. The labeling practices
that are prohibited if misleading set
forth in this subpart apply to any malt
beverage label, container, or packaging.
For purposes of this subpart:
(1) The term ‘‘label’’ includes all
labels on malt beverage containers on
which mandatory information may
appear, as set forth in § 7.61(a), as well
as any other label on the container;
(2) The term ‘‘container’’ includes all
parts of the malt beverage container,
including any part of a malt beverage
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container on which mandatory
information may appear, as well as
those parts of the container on which
information does not satisfy mandatory
labeling requirements, as set forth in
§ 7.61(b); and
(3) The term ‘‘packaging’’ includes
any carton, case, carrier, individual
covering, or other packaging of such
containers used for sale at retail but
does not include shipping cartons or
cases that are not intended to
accompany the container to the
consumer.
(b) Statement or representation. For
purposes of this subpart, the term
‘‘statement or representation’’ includes
any statement, design, device, or
representation, and includes pictorial or
graphic designs or representations as
well as written ones. The term
‘‘statement or representation’’ includes
explicit and implicit statements and
representations.
§ 7.122 Misleading statements or
representations.
(a) General prohibition. Malt beverage
labels, containers, or packaging may not
contain any statement or representation,
irrespective of falsity, that is misleading
to consumers as to the age, origin,
identity, or other characteristics of the
malt beverage, or with regard to any
other material factor.
(b) Ways in which statements or
representations may be misleading. (1)
A statement or representation is
prohibited, irrespective of falsity, if it
directly creates a misleading impression
or if it does so indirectly through
ambiguity, omission, inference, or by
the addition of irrelevant, scientific, or
technical matter. For example, an
otherwise truthful statement may be
misleading because of the omission of
material information, the disclosure of
which is necessary to prevent the
statement from being misleading.
(2) As set forth in § 7.212(b), all
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Any claim on malt beverage labels,
containers, or packaging that does not
have a reasonable basis in fact or cannot
be adequately substantiated upon the
request of the appropriate TTB officer is
considered misleading.
§ 7.123
Guarantees.
Malt beverage labels, containers, or
packaging may not contain any
statement relating to guarantees if the
appropriate TTB officer finds it is likely
to mislead the consumer. However,
money-back guarantees are not
prohibited.
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§ 7.124
Disparaging statements.
(a) General. Malt beverage labels,
containers, or packaging may not
contain any false or misleading
statement that explicitly or implicitly
disparages a competitor’s product.
(b) Examples. (1) An example of an
explicit statement that falsely disparages
a competitor’s product is ‘‘Brand X is
not aged in oak barrels’’ when such
statement is not true.
(2) An example of an implicit
statement that disparages competitors’
products in a misleading fashion is ‘‘We
do not add arsenic to our malt
beverage,’’ where such a claim is true
but it may lead consumers to falsely
believe that other brewers do add
arsenic to their malt beverages.
(c) Truthful and accurate
comparisons. This section does not
prevent truthful and accurate
comparisons between products (such as
‘‘Our ale contains more hops than Brand
X’’) or statements of opinion (such as
‘‘We think our beer tastes better than
any other beer on the market’’).
§ 7.125
Tests or analyses.
Malt beverage labels, containers, or
packaging may not contain any
statement or representation of or
relating to analyses, standards, or tests,
whether or not it is true, that is likely
to mislead the consumer. An example of
a misleading statement is ‘‘tested and
approved by our research laboratories’’
if the testing and approval does not in
fact have any significance.
§ 7.126 Depictions of government
symbols.
(a) Representations of the armed
forces or flags. Malt beverage labels,
containers, or packaging may not show
an image of any government’s flag or
any representation related to the armed
forces of the United States if the
representation, standing alone or
considered together with any additional
language or symbols on the label,
creates a false or misleading impression
that the product was endorsed by, made
by, used by, or made under the
supervision of the government
represented by that flag or by the armed
forces of the United States. This section
does not prohibit the use of a flag as part
of a claim of American origin or another
country of origin.
(b) Government seals. Malt beverage
labels, containers, or packaging may not
contain any government seal or other
insignia that is likely to create a false or
misleading impression that the product
has been endorsed by, made by, used
by, or produced for, under the
supervision of, or in accordance with
the specification of that government.
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Seals required or specifically authorized
by applicable law or regulations and
used in accordance with such law or
regulations are not prohibited.
§ 7.127 Depictions simulating government
stamps or relating to supervision.
Malt beverage labels, containers, or
packaging may not contain any
statements, images, or designs that
mislead consumers to believe that the
malt beverage is manufactured or
processed under government authority.
Malt beverage labels, containers, or
packaging may not contain images or
designs resembling a stamp of the U.S.
Government or any State or foreign
government, other than stamps
authorized or required by this or any
other government, and may not contain
statements or indications that the malt
beverage is produced, blended, bottled,
packed, or sold under, or in accordance
with any municipal, State, Federal, or
foreign authorization, law, or
regulations unless such statement is
required or specifically authorized by
applicable law or regulation. If a
municipal, State, or Federal
Government permit number is stated on
malt beverage labels, containers, or
packaging, it may not be accompanied
by any additional statement relating to
that permit number.
§ 7.128
wines.
Claims related to distilled spirits or
(a) General. Except as provided in
paragraph (b) of this section, no malt
beverage labels, containers, or packaging
may contain a statement, design, or
representation that tends to create a
false or misleading impression that the
malt beverage product is a distilled
spirits or wine product, or that it
contains distilled spirits or wine. For
example, the use of the name of a class
or type designation of a wine or distilled
spirits product, as set forth in parts 4
and 5 of this chapter, is prohibited if the
use of that name tends to create a false
or misleading impression as to the
identity of the product. Homophones or
coined words that simulate or imitate a
class or type designation are also
prohibited.
(b) Exceptions. This section does not
prohibit:
(1) A truthful and accurate statement
of alcohol content;
(2) The use of a brand name of a wine
or distilled spirits product as a malt
beverage brand name, provided that the
overall label does not create a
misleading impression as to the identity
of the product;
(3) The use of a cocktail name as a
brand name or a distinctive or fanciful
name of a malt beverage, provided that
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the overall labeling does not present a
misleading impression about the
identity of the product;
(4) The use of truthful and accurate
statements about the production of the
malt beverage as part of a statement of
composition or otherwise, such as ‘‘aged
in whisky barrels,’’ ‘‘fermented with
grapes,’’ or ‘‘Beer brewed with
chardonnay grapes’’ as long as such
statements do not create a misleading
impression as to the identity of the
product;
(5) The use of the designation ‘‘barley
(or wheat or rye) wine ale’’ or ‘‘barley
(or wheat or rye) style wine ale’’; or
(6) The use of terms that simply
compare malt beverage products to wine
or distilled spirits products without
creating a misleading impression as to
the identity of the product.
§ 7.129
Health-related statements.
(a) Definitions. When used in this
section, the following terms have the
meaning indicated:
(1) Health-related statement means
any statement related to health (other
than the warning statement required
under part 16 of this chapter) and
includes statements of a curative or
therapeutic nature that, expressly or by
implication, suggest a relationship
between the consumption of alcohol,
malt beverages, or any substance found
within the malt beverage, and health
benefits or effects on health. The term
includes both specific health claims and
general references to alleged health
benefits or effects on health associated
with the consumption of alcohol, a malt
beverage, or any substance found within
the malt beverage product, as well as
health-related directional statements.
The term also includes statements and
claims that imply that a physical or
psychological sensation results from
consuming the alcohol beverage
product, as well as statements and
claims of nutritional value (for example,
statements of vitamin content).
Numerical statements of the calorie,
carbohydrate, protein, and fat content of
the product do not constitute claims of
nutritional value.
(2) Specific health claim means a type
of health-related statement that,
expressly or by implication,
characterizes the relationship of malt
beverages, alcohol, or any substance
found within the malt beverage, to a
disease or health-related condition.
Implied specific health claims include
statements, symbols, vignettes, or other
forms of communication that suggest,
within the context in which they are
presented, that a relationship exists
between alcohol, malt beverages, or any
substance found within the malt
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beverage, and a disease or health-related
condition.
(3) Health-related directional
statement means a type of health-related
statement that directs or refers
consumers to a third party or other
source for information regarding the
effects on health of malt beverage or
alcohol consumption.
(b) Rules for malt beverage labels,
containers, and packaging—(1) Healthrelated statements. In general, malt
beverage labels, containers, or packaging
may not contain any health-related
statement that is untrue in any
particular or tends to create a
misleading impression as to the effects
on health of alcohol consumption. TTB
will evaluate such statements on a caseby-case basis and may require as part of
the health-related statement a
disclaimer or some other qualifying
statement to dispel any misleading
impression conveyed by the healthrelated statement.
(2) Specific health claims. (i) TTB will
consult with the Food and Drug
Administration (FDA) as needed on the
use of specific health claims on labels,
containers, or packaging. If FDA
determines that the use of such a claim
is a drug claim that is not in compliance
with the requirements of the Federal
Food, Drug, and Cosmetic Act, TTB will
not approve the use of that specific
health claim on the malt beverage label.
(ii) TTB will approve the use of a
specific health claim on a malt beverage
label only if the claim is truthful and
adequately substantiated by scientific or
medical evidence; is sufficiently
detailed and qualified with respect to
the categories of individuals to whom
the claim applies; adequately discloses
the health risks associated with both
moderate and heavier levels of alcohol
consumption; and outlines the
categories of individuals for whom any
levels of alcohol consumption may
cause health risks. This information
must appear as part of the specific
health claim.
(3) Health-related directional
statements. A health-related directional
statement is presumed misleading
unless it:
(i) Directs consumers in a neutral or
other non-misleading manner to a third
party or other source for balanced
information regarding the effects on
health of malt beverage or alcohol
consumption; and
(ii)(A) Includes as part of the healthrelated directional statement the
following disclaimer: ‘‘This statement
should not encourage you to drink or to
increase your alcohol consumption for
health reasons’’; or
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(B) Includes as part of the healthrelated directional statement some other
qualifying statement that the
appropriate TTB officer finds is
sufficient to dispel any misleading
impression conveyed by the healthrelated directional statement.
§ 7.130
Appearance of endorsement.
(a) General. Malt beverage labels,
containers, or packaging may not
include the name, or the simulation or
abbreviation of the name, of any living
individual of public prominence or an
existing private or public organization,
or any graphic, pictorial, or emblematic
representation of the individual or
organization if its use is likely to lead
a consumer to falsely believe that the
product has been endorsed, made, or
used by, or produced for, or under the
supervision of, or in accordance with
the specifications of, such individual or
organization. This section does not
prohibit the use of such names where
the individual or organization has
provided authorization for their use.
(b) Documentation. The appropriate
TTB officer may request documentation
from the bottler or importer to establish
that the person or organization has
provided authorization to use the name
of that person or organization.
(c) Disclaimers. Statements or other
representations do not violate this
section if, taken as a whole, they create
no misleading impression as to an
implied endorsement either because of
the context in which they are presented
or because of the use of an adequate
disclaimer.
§ 7.131
terms.
The word ‘‘bonded’’ and similar
Malt beverage labels, containers, or
packaging may not contain the words
‘‘bonded,’’ ‘‘bottled in bond,’’ ‘‘aged in
bond,’’ ‘‘bonded age,’’ ‘‘bottled under
Customs supervision,’’ or other phrases
containing these or synonymous terms
that create a misleading impression as to
governmental supervision over
production or bottling.
§ 7.132
Strength claims.
(a) General. For purposes of this
section, the term ‘‘strength claim’’
means a statement that directly or
indirectly makes a claim about the
alcohol content of the product. This
section does not apply to the use of the
terms ‘‘low alcohol,’’ ‘‘reduced alcohol,’’
‘‘non-alcoholic,’’ and ‘‘alcohol-free’’ in
accordance with § 7.65; to claims about
low alcohol content in general; or to
labeling with an alcohol content
statement in accordance with § 7.65.
(b) Prohibition. The use of a strength
claim on malt beverage labels,
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containers, or packaging is prohibited if
it misleads consumers by implying that
products should be purchased or
consumed on the basis of higher alcohol
strength. Examples of strength claims
are ‘‘full strength,’’ ‘‘extra strength,’’
‘‘high test,’’ and ‘‘high proof.’’
Subpart I—Classes and Types of Malt
Beverages
§ 7.141
Class and type.
(a) Products known to the trade. The
class of the malt beverage must be stated
on the label (see § 7.63). The type of the
malt beverage may be stated, but is not
required to appear on the label.
Statements of class and type must
conform to the designation of the
product as known to the trade. All parts
of the designation must appear together.
(b) Malt beverage specialty products—
(1) General. A malt beverage specialty
product is a malt beverage that does not
fall under any of the class designations
set forth in §§ 7.142 through 7.144 and
is not known to the trade under a
particular designation, usually because
of the addition of ingredients such as
colorings, flavorings, or food materials
or the use of certain types of production
processes where the appropriate TTB
officer has not determined that such
ingredients or processes are generally
recognized as traditional in the
production of a fermented beverage
designated as ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’
‘‘stout,’’ ‘‘lager,’’ or ‘‘malt liquor.’’
(2) Designation. A malt beverage
specialty product must be designated
with a distinctive or fanciful name,
together with a statement of the
composition of the product, in
accordance with § 7.147. This statement
will be considered the class designation
for the purposes of this part. All parts
of the designation must appear together.
§ 7.142
Class designations.
The following class designations may
be used in accordance with this section:
(a) Any malt beverage, as defined in
§ 7.1, may be designated simply as a
‘‘malt beverage.’’
(b)(1) The class designations ‘‘beer,’’
‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ and
‘‘malt liquor’’ may be used to designate
malt beverages that contain at least 0.5
percent alcohol by volume and that
conform to the trade understanding of
those designations. These designations
may be preceded or followed by
descriptions of the color of the product
(such as ‘‘amber,’’ ‘‘brown,’’ ‘‘red,’’ or
‘‘golden’’) as well as descriptive terms
such as ‘‘dry,’’ ‘‘export,’’ ‘‘cream,’’ and
‘‘pale.’’
(2) No product other than a malt
beverage fermented at a comparatively
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high temperature, possessing the
characteristics generally attributed to
‘‘ale,’’ ‘‘porter,’’ or ‘‘stout’’ and
produced without the use of coloring or
flavoring materials (other than those
recognized in standard brewing
practices) may bear any of these class
designations.
(c) The name ‘‘Pilsen’’ (or ‘‘Pilsener’’
or ‘‘Pilsner’’) may be used as the class
designation for beers produced in the
Czech Republic or the United States
without use of the word ‘‘type’’ or a
similar qualifying statement. See
§ 7.106. The name also may be used as
the class designation for beer produced
outside of those countries, as long as it
is qualified in accordance with the
requirements of § 7.146.
§ 7.143
Class and type—special rules.
The following special rules apply to
specified class and type designations:
(a) Reconstituted malt beverages. Malt
beverages that have been concentrated
by the removal of water therefrom and
reconstituted by the addition of water
and carbon dioxide must for the
purpose of this part be labeled in the
same manner as malt beverages which
have not been concentrated and
reconstituted, except that there must
appear immediately adjacent to, and as
a part of, the class designation the
statement ‘‘PRODUCED FROM lll
CONCENTRATE’’ (the blank to be filled
in with the appropriate class
designation). All parts of the class
designation must appear in lettering of
substantially the same size and kind.
However, ice beers, described in
paragraph (c) of this section, which are
produced by the removal of less than 0.5
percent of the volume of the beer in the
form of ice crystals and that retain beer
character are not considered
concentrated.
(b) Half and half. No product may be
designated with the type designation
‘‘half and half’’ unless it is in fact
composed of equal parts of two classes
of malt beverages, the names of which
are conspicuously stated immediately
adjacent to the designation ‘‘half and
half.’’ For example, ‘‘Half and Half,
Porter and Stout.’’ This does not
preclude the use of terms such as ‘‘half
and half’’ as part of a distinctive or
fanciful name that refers to flavors
added to a malt beverage designated in
accordance with trade understanding or
with a statement of composition.
(c) Ice beer. Malt beverages
supercooled during the brewing process
to form ice crystals may be labeled with
the type designation ‘‘ice’’ preceding the
class designation (beer, ale, etc.).
(d) Black and tan. A product
composed of two classes of malt
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beverages may be designated with the
type designation ‘‘black and tan,’’ and
the class and type designation is the
names of the two classes of malt
beverages in conjunction with ‘‘black
and tan’’ (for example, ‘‘Black and Tan,
Stout and Ale’’).
(e) Wheat beer. Any ‘‘beer,’’ ‘‘ale,’’
‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘malt
liquor,’’ or other malt beverage made
from a fermentable base that consists of
at least 25 percent by weight malted
wheat may be designated with the type
designation ‘‘wheat’’ preceding the
applicable class designation.
(f) Rye beer. Any ‘‘beer,’’ ‘‘ale,’’
‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘malt
liquor,’’ or other malt beverage made
from a fermentable base that consists of
at least 25 percent by weight malted rye
may be designated with the type
designation ‘‘rye’’ preceding the
applicable class designation.
(g) Barley wine ale. The term ‘‘barley
(or wheat or rye) wine ale’’ or ‘‘barley
(or wheat or rye) wine style ale’’ may be
used in accordance with trade
understanding.
(h) Malt beverages aged in barrels—(1)
General. Label designations for malt
beverages aged in barrels or with
woodchips, spirals, or staves derived
from barrels may, but are not required
to, include a description of how the
product was aged. Thus, for example,
acceptable designations for a standard
beer aged in an oak barrel would
include ‘‘beer,’’ ‘‘oak aged beer,’’ and
‘‘beer aged in an oak barrel.’’
(2) Barrels previously used in the
production or storage of wine or
distilled spirits. Malt beverages aged in
barrels previously used in the
production or storage of wine or
distilled spirits, or with woodchips,
spirals, or staves derived from barrels
previously used in the production or
storage of wine or distilled spirits, or
from woodchips previously used in the
aging of distilled spirits or wine may,
but are not required to, include a
description of how the product was
aged.
(i) Examples of acceptable
designations for a standard beer aged in
a wine barrel include ‘‘beer,’’ ‘‘beer aged
in a wine barrel,’’ and ‘‘wine barrel aged
beer.’’
(ii) Examples of acceptable
designations for an ale brewed with
honey and aged in a bourbon barrel
include ‘‘honey ale’’ and ‘‘bourbon
barrel aged honey ale’’ but not simply
‘‘ale’’ or ‘‘bourbon barrel aged ale.’’
(3) Misleading designations.
Designations that create a misleading
impression as to the identity of the
product by emphasizing certain words
or terms are prohibited. As set forth in
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§ 7.122, malt beverage labels may not
include misleading representations that
imply that a malt beverage contains
distilled spirits or wine or is a distilled
spirits or wine product. Examples of
designations that would be prohibited
under this provision are ‘‘bourbon ale,’’
‘‘bourbon-flavored lager,’’ ‘‘Chardonnay
lager,’’ or ‘‘lager with whisky flavors.’’
(i) Other designations. Other type
designations (such as ‘‘milk’’ preceding
the class designation ‘‘stout’’) may be
applied in conformance with trade
understanding.
§ 7.144 Malt beverages fermented or
flavored with certain traditional ingredients.
(a) General. Any malt beverage that
has been fermented or flavored only
with one or more ingredients (such as
honey or certain fruits) that the
appropriate TTB officer has determined
are generally recognized as traditional
ingredients in the production of a
fermented beverage designated as
‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’
or ‘‘malt liquor’’ may be labeled in
accordance with trade understanding
following the rules set forth in this
section.
(1) A list of such traditional
ingredients may be found on the TTB
website (https://www.ttb.gov).
(2) If the malt beverage has also been
fermented or flavored with ingredients
that the appropriate TTB officer has not
determined are generally recognized as
traditional ingredients in the production
of a fermented beverage designated as
‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’
or ‘‘malt liquor,’’ it is a malt beverage
specialty and must be labeled in
accordance with the statement of
composition rules in § 7.147
(b) Rules for designation. (1) A
designation in accordance with trade
understanding must identify the base
product, such as ‘‘malt beverage,’’
‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’
or ‘‘malt liquor’’ along with a modifier
or explanation that provides the
consumer with adequate information
about the fruit, honey, or other food
ingredient used in production of the
malt beverage. The label may include
additional information about the
production process (such as ‘‘beer
fermented with cherry juice’’).
(2) Where more than one exempted
ingredient is included, a designation in
accordance with trade understanding
may identify each ingredient (such as
‘‘Ale with cherry juice, cinnamon, and
nutmeg’’), refer to the ingredients by
category (such as ‘‘Fruit ale,’’ ‘‘Spiced
ale,’’ or ‘‘Ale with natural flavors’’), or
simply include the ingredient or
ingredients that the bottler or importer
believes best identify the product (such
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as ‘‘Cherry ale,’’ ‘‘Cinnamon ale,’’ or
‘‘Nutmeg ale’’). The designation must
distinguish the product from a malt
beverage, beer, ale, porter, stout, lager,
or malt liquor that is not brewed or
flavored with any of these ingredients;
thus, unmodified designations such as
‘‘beer,’’ ‘‘stout,’’ or ‘‘ale’’ would not be
acceptable.
(c) Other requirements. All parts of
the designation must appear together
and must be readily legible on a
contrasting background. Designations
that create a misleading impression as to
the identity of the product by
emphasizing certain words or terms are
prohibited.
§ 7.145 Malt beverages containing less
than 0.5 percent alcohol by volume.
(a) Products containing less than onehalf of 1 percent (0.5%) of alcohol by
volume must bear the class designation
‘‘malt beverage,’’ ‘‘cereal beverage,’’ or
‘‘near beer.’’
(b) If the designation ‘‘near beer’’ is
used, both words must appear in the
same size and style of type, in the same
color of ink, and on the same
background.
(c) No product containing less than
one-half of 1 percent of alcohol by
volume may bear the class designations
‘‘beer,’’ ‘‘lager beer,’’ ‘‘lager,’’ ‘‘ale,’’
‘‘porter,’’ ‘‘stout,’’ or any other class or
type designation commonly applied to
malt beverages containing one-half of 1
percent or more of alcohol by volume.
§ 7.146
Geographical names.
(a) General. Except as provided
further in paragraphs (b) through (e) of
this section, any geographical name that
may be interpreted as designating the
origin of the malt beverage may not be
used unless it is a truthful
representation as to the origin of the
malt beverage.
(b) Generic names. The appropriate
TTB officer may find certain geographic
names of types of malt beverages to be
generic if they have lost their geographic
significance through use and common
knowledge. Generic names may be used
to designate a malt beverage regardless
of its origin. TTB publishes a list of
generic names on its website (https://
www.ttb.gov). The following are
examples of names that have been found
to be generic: India Pale Ale, Scotch ale
(Scottish ale), and Russian Imperial
Stout (Imperial Russian Stout).
(c) Brand names. A geographical
name may be used as part of the brand
name for a product that does not come
from the geographical area named in the
brand as long as the name is qualified
with the word ‘‘brand’’ or with some
other qualification that is adequate to
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dispel any misleading impression that
might otherwise be created in
accordance with § 7.64.
(d) References to types and styles. (1)
A geographical name may be used on a
label to precede a class designation
where the name refers to a particular
type or style of product rather than the
geographical origin of the malt beverage,
under the following conditions:
(i) The word ‘‘type’’ or ‘‘style’’
appears immediately adjacent to, and in
type size at least half as large as, the
geographical name (such as ‘‘Irish style
ale’’); or some other statement
indicating the true place of production
appears in the same field of vision as,
and in type size at least half as large as,
the geographical name (such as ‘‘Irish
ale—brewed in California’’ or
‘‘American Vienna lager’’); and
(ii) The malt beverage to which the
name is applied conforms to the type or
style so designated.
(2) The following are examples of
references to types or styles of malt
beverages: Dortmund, Dortmunder,
Vienna, Wien, Wiener, Bavarian,
Munich, Munchner, Salvator,
Kulmbacher, Wurtzburger, and
California Common. These names of
types or styles of malt beverages may be
used in addition to, but not in lieu of,
a class designation (for example,
‘‘Vienna style Beer,’’ ‘‘Bavarian Stout—
Brewed in the United States,’’ or
‘‘California Common Lager—Brewed in
Michigan’’).
(3) The words ‘‘type’’ or ‘‘style’’ may
also be used to designate malt beverages
that are manufactured in the geographic
area indicated by the name (such as
‘‘German style Dortmunder beer’’ or
‘‘Vienna beer—an Austrian type of malt
beverage’’) as long as the label does not
create confusion as to the origin of the
malt beverage. Such products may also
be designated without the words ‘‘type’’
or ‘‘style’’ (for example, ‘‘Dortmunder
beer’’ or ‘‘Vienna beer’’) for products
that originate in the geographical area
named.
(e) Pilsen or Pilsener or Pilsner. The
name ‘‘Pilsen’’ (or ‘‘Pilsener’’ or
‘‘Pilsner’’) has not been recognized as
generic, but it may be used to designate
beers produced in the Czech Republic or
the United States without use of the
word ‘‘type’’ or a similar qualifying
statement and without an additional
class or type designation. See § 7.102(c).
§ 7.147
Statement of composition.
(a) A statement of composition is
required to appear on the label for malt
beverage specialty products, as defined
in § 7.141(b), which are not known to
the trade under a particular designation.
For example, the addition of flavoring
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materials, colors, or artificial sweeteners
may change the class and type of the
malt beverage. The statement of
composition along with a distinctive or
fanciful name serves as the class and
type designation for these products.
(b) When required by this part, a
statement of composition must contain
all of the following information, as
applicable:
(1) Identify the base class and/or type
designation. The statement of
composition must clearly identify the
base class and/or type designation of the
malt beverage product (e.g., ‘‘beer,’’
‘‘lager beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’
‘‘stout,’’ or ‘‘malt beverage’’).
(2) Identify added flavoring
material(s) used before, during, and
after fermentation. The statement of
composition must disclose fermentable
or non-fermentable flavoring materials
added to the malt beverage base class.
(i) If the flavoring material is used
before or during the fermentation
process, the statement of composition
must indicate that the malt beverage
was fermented or brewed with the
flavoring material (such as ‘‘Beer
Fermented with grapefruit juice’’ or
‘‘Grapefruit Ale’’). If the flavoring
material is added after fermentation, the
statement of composition must describe
that process, using terms such as
‘‘added,’’ ‘‘with,’’ ‘‘infused,’’ or
‘‘flavored’’ (such as ‘‘Grapefruit-flavored
ale.’’)
(ii) If a single flavoring material is
used in the production of the malt
beverage product, the flavoring material
may be specifically identified (such as
‘‘Ale Fermented with grapefruit juice’’)
or generally referenced (such as ‘‘Ale
with natural flavor’’). If two or more
flavoring materials are used in the
production of the malt beverage, each
flavoring material may be specifically
identified (such as ‘‘lemon juice, kiwi
juice’’ or ‘‘lemon and kiwi juice’’) or the
characterizing flavoring material may be
specifically identified and the
remaining flavoring materials may be
generally referenced (such as ‘‘kiwi and
other natural and artificial flavor(s)’’), or
all flavors may be generally referenced
(such as ‘‘with artificial flavors’’). (Note:
TTB Procedure XXXX–XX, available on
the TTB website (https://www.ttb.gov),
provides guidance on the use of the
terms ‘‘natural’’ and ‘‘artificial’’ when
referencing flavoring materials.)
(3) Identify Added Coloring
Material(s). The statement of
composition must disclose the addition
of coloring material(s), whether added
directly or through flavoring material(s).
The coloring materials may be identified
specifically (such as ‘‘caramel color,’’
‘‘FD&C Red #40,’’ ‘‘annatto,’’ etc.) or as
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a general statement, such as ‘‘Contains
certified color’’ for colors approved
under 21 CFR subpart 74 or ‘‘artificially
colored’’ to indicate the presence of any
one or a combination of coloring
material(s). However, FD&C Yellow No.
5, carmine, and cochineal extract
require specific disclosure in
accordance with § 7.63(b)(1) and (2) and
that specific disclosure may appear
either in the statement of composition
or elsewhere in accordance with those
sections.
(4) Identify added artificial
sweeteners. The statement of
composition must disclose any artificial
sweetener that is added to a malt
beverage product, whether the artificial
sweetener is added directly or through
flavoring material(s). The artificial
sweetener may be identified specifically
by either generic name or trademarked
brand name, or as a general statement
(such as ‘‘artificially sweetened’’) to
indicate the presence of any one or
combination of artificial sweeteners.
However, if aspartame is used, an
additional warning statement is
required in accordance with § 7.63(b)(4).
Subpart J–K—Reserved
Subpart L—Recordkeeping and
Substantiation Requirements
§ 7.211 Recordkeeping requirements—
certificates.
(a) Certificates of label approval
(COLAs). Upon request by the
appropriate TTB officer, a bottler or
importer must provide evidence of label
approval for a label used on a container
of malt beverages that is subject to the
COLA requirements of this part. This
requirement may be satisfied by
providing original COLAs, photocopies,
or electronic copies of COLAs, or
records showing the TTB Identification
number assigned to the approved COLA.
TTB may request such information for a
period of five years from the date that
the products covered by the COLAs
were removed from the bottler’s
premises or from customs custody, as
applicable.
(b) Labels with revisions. Where labels
on containers reflect revisions to the
approved label that have been made in
compliance with allowable revisions
authorized by TTB Form 5100.31 or
otherwise authorized by TTB, the bottler
or importer must, upon request by the
appropriate TTB officer, identify the
COLA covering the product if the
product is required to be covered by a
COLA. TTB may request such
information for a period of five years
from the date that the products covered
by the COLA were removed from the
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bottler’s premises or from customs
custody, as applicable.
(c) Other recordkeeping requirements
under this part. See § 7.26 for other
recordkeeping requirements under this
part.
§ 7.212
Substantiation requirements.
(a) Application. The substantiation
requirements of this section apply to
any claim made on any label or
container subject to the requirements of
this part.
(b) Reasonable basis in fact. All
claims, whether implicit or explicit,
must have a reasonable basis in fact.
Claims that contain express or implied
statements regarding the amount of
support for the claim (such as ‘‘tests
prove’’ or ‘‘studies show’’) must have
the level of substantiation that is
claimed. Any labeling claim that does
not have a reasonable basis in fact or
cannot be adequately substantiated
upon the request of the appropriate TTB
officer will be considered misleading
within the meaning of § 7.122(b)(2).
(c) Evidence that claims are
adequately substantiated. The
appropriate TTB officer may request
that bottlers and importers provide
evidence that labeling claims are
adequately substantiated at any time
within a period of five years from the
time the malt beverages were removed
from the bottling premises or from
customs custody, as applicable.
Subpart M—Penalties and
Compromise of Liability
§ 7.221
Criminal penalties.
A violation of the labeling provisions
of 27 U.S.C. 205(e) is punishable as a
misdemeanor. See 27 U.S.C. 207 for the
statutory provisions relating to criminal
penalties, consent decrees, and
injunctions.
§ 7.222
Conditions of basic permit.
A basic permit is conditioned upon
compliance with the requirements of 27
U.S.C. 205, including the labeling
provisions of this part. A willful
violation of the conditions of a basic
permit provides grounds for the
revocation or suspension of the permit,
as applicable, as set forth in part 1 of
this chapter.
§ 7.223
Compromise.
Pursuant to 27 U.S.C. 207, the
appropriate TTB officer is authorized,
with respect to any violation of 27
U.S.C. 205, to compromise the liability
arising with respect to such violation
upon payment of a sum not in excess of
$500 for each offense, to be collected by
the appropriate TTB officer and to be
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paid into the Treasury as miscellaneous
receipts.
Subpart N—Paperwork Reduction Act
§ 7.231 OMB control numbers assigned
under the Paperwork Reduction Act.
(a) Purpose. This subpart displays the
control numbers assigned to information
collection requirements in this part by
the Office of Management and Budget
(OMB) under the Paperwork Reduction
Act of 1995, Public Law 104–13.
(b) Chart. The following chart
identifies each section in this part that
contains an information collection
requirement and the OMB control
number that is assigned to that
information collection requirement.
Section where
contained
Current OMB Control No.
Subpart B—Rules Related to Specific
Practices in Advertisements
14.11 Statements and representations in
advertisements.
14.12 Regulated practices.
14.13 Prohibited practices.
14.14 Misleading statements or
representations.
14.15 Additional rules for wine.
14.16 Additional rules for distilled spirits.
14.17 Additional rules for malt beverages.
Subpart C—Penalties and Compromise of
Liability
14.21 Criminal penalties.
14.22 Conditions of basic permit.
14.23 Compromise.
Subpart D—Paperwork Reduction Act
14.31 OMB control numbers assigned under
the Paperwork Reduction Act.
Authority: 27 U.S.C. 205, unless otherwise
noted.
§ 14.014.0
7.21 ................
7.22 ................
7.24 ................
7.25 ................
7.27 ................
7.28 ................
7.62 ................
7.63 ................
7.66 ................
7.67 ................
7.81 ................
7.82 ................
7.83 ................
7.84 ................
7.85 ................
7.121 ..............
7.122 ..............
7.123 ..............
7.124 ..............
7.125 ..............
7.126 ..............
7.127 ..............
7.128 ..............
7.129 ..............
7.130 ..............
7.131 ..............
7.132 ..............
7.211 ..............
7.212 ..............
■
1513–0020, 1513–0087.
1513–0020, 1513–0087,
1513–0111.
1513–0020, 1513–0064.
1513–0020, 1513–0111.
1513–0020, 1513–0087.
1513–0122.
1513–0087.
1513–0084, 1513–0087.
1513–0085.
1513–0085.
1513–0087.
1513–0087, 1513–0121.
1513–0087, 1513–0121.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
New control number.
New control number.
4. Add part 14 to read as follows:
PART 14—ADVERTISING OF WINE,
DISTILLED SPIRITS, AND MALT
BEVERAGES
Sec.
14.0
Applicability.
Subpart A—General Provisions
14.1
14.2
14.3
Definitions.
Territorial extent.
Delegations of the Administrator’s
authorities.
14.4 General requirements under the
Federal Alcohol Administration Act.
14.5 Legibility of mandatory information.
14.6 Mandatory statements.
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Applicability.
(a) General. Except as otherwise
provided in paragraph (b) of this
section, the provisions of this part
prescribe rules under section 105(f) of
the Federal Alcohol Administration Act
for the advertising of wine, distilled
spirits, and malt beverages.
(b) Malt beverages. The provisions of
this part apply to the advertising of malt
beverages intended to be sold or
shipped or delivered for shipment, or
otherwise introduced into or received in
any State from any place outside the
State, only to the extent that the laws or
regulations of such State impose similar
requirements with respect to the
advertising of malt beverages sold
within that State.
Subpart A—General Provisions
§ 14.114.1
Definitions.
Administrator. The Administrator,
Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
Advertisement or Advertising. The
term ‘‘advertisement’’ or ‘‘advertising’’
includes any written or verbal
statement, illustration, or depiction that
is in, or calculated to induce sales in,
interstate or foreign commerce, or is
disseminated by mail, whether it
appears in a newspaper, magazine, trade
booklet, menu, wine card, leaflet,
circular, mailer, book insert, catalog,
promotional material, sales pamphlet,
internet or other electronic site or social
network, or any written, printed,
graphic, or other matter (such as hang
tags) accompanying, but not firmly
affixed to, the container, representations
made on shipping cases, or in any
billboard, sign, or other outdoor display,
public transit card, other periodical
literature, and publication, or in a radio
or television broadcast, or in any other
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media. However, the term
‘‘advertisement’’ does not include:
(1) Any label, container, or packaging
that is subject to the provisions of part
4, 5 or 7 of this chapter; or
(2) Any editorial or other reading
material (such as a release) in any
periodical or publication or newspaper,
for the publication of which no money
or valuable consideration or a thing of
value is paid or promised, directly or
indirectly, by any permittee or brewer,
and which is not written by or at the
direction of a permittee or brewer.
Appropriate TTB officer. An officer or
employee of the Alcohol and Tobacco
Tax and Trade Bureau (TTB) authorized
to perform any function relating to the
administration or enforcement of this
part by the current version of TTB Order
1135.14, Delegation of the
Administrator’s Authorities in 27 CFR
part 14, Advertising of Wine, Distilled
Spirits, and Malt Beverages.
Consumer Specialty Items. Items that
are designed to be carried away by the
consumer, such as nonalcoholic mixers,
pouring racks, ash trays, bottle or can
openers, cork screws, shopping bags,
matches, printed recipes, pamphlets,
cards, leaflets, blotters, post cards,
pencils, shirts, caps, and visors.
Container. Any can, bottle, box used
to protect an internal bladder, cask, keg,
barrel or other closed receptacle, in any
size or material, that is for use in the
sale of wine, distilled spirits, or malt
beverages at retail.
Distilled spirits. Ethyl alcohol,
hydrated oxide of ethyl, spirits of wine,
whisky, rum, brandy, gin, and other
distilled spirits, including all dilutions
and mixtures thereof, for nonindustrial
use. The term ‘‘distilled spirits’’ does
not include mixtures containing wine,
bottled at 48 degrees of proof or less, if
the mixture contains more than 50
percent wine on a proof gallon basis.
The term ‘‘distilled spirits’’ also does
not include products containing less
than 0.5 percent alcohol by volume.
FAA Act. Federal Alcohol
Administration Act.
Malt beverage. A beverage made by
the alcoholic fermentation of an
infusion or decoction, or combination of
both, in potable brewing water, of
malted barley with hops, or their parts,
or their products, and with or without
other malted cereals, and with or
without the addition of unmalted or
prepared cereals, other carbohydrates or
products prepared therefrom, and with
or without the addition of carbon
dioxide, and with or without other
wholesome products suitable for human
food consumption. See § 7.5 of this
chapter for standards applying to the
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use of processing methods and flavors
in malt beverage production.
Permittee. Any person holding a basic
permit under the FAA Act.
Person. Any individual, corporation,
partnership, association, joint-stock
company, business trust, limited
liability company, or other form of
business enterprise, including a
receiver, trustee, or liquidating agent,
and including an officer or employee of
any agency of a State or political
subdivision of a State.
Responsible advertiser. The permittee
or brewer responsible for the
publication or broadcast of an
advertisement.
Spirits. See Distilled spirits.
State. One of the 50 States of the
United States, the District of Columbia,
or the Commonwealth of Puerto Rico.
TTB. The Alcohol and Tobacco Tax
and Trade Bureau, Department of the
Treasury.
United States. The 50 States, the
District of Columbia, and the
Commonwealth of Puerto Rico.
Wine. Section 117(a) of the Federal
Alcohol Administration Act (27 U.S.C.
211(a)) defines ‘‘wine’’ as any of the
following products for nonindustrial use
that contain not less than 7 percent and
not more than 24 percent alcohol by
volume:
(1) Wine as defined in section 610 and
section 617 of the Revenue Act of 1918
(26 U.S.C. 5381–5392); and
(2) Other alcoholic beverages not so
defined, but made in the manner of
wine, including sparkling and
carbonated wine, wine made from
condensed grape must, wine made from
other agricultural products than the
juice of sound, ripe grapes, imitation
wine, compounds sold as wine,
vermouth, cider, perry, and sake´.
Street, Room 8002, Cincinnati, OH
45202.
§ 14.414.4
FAA Act.
General requirements under the
(a) General. No person engaged in
business as a distiller, brewer, blender,
or other producer, or as an importer or
wholesaler of distilled spirits, wine or
malt beverages, or as a processor,
bottler, or warehouseman and bottler of
distilled spirits, directly or indirectly or
through an affiliate, may publish or
disseminate or cause to be published or
disseminated by radio or television
broadcast, or in any newspaper,
periodical, or other publication, or by
any sign or outdoor advertisement, or by
electronic or internet media, or any
other printed or graphic matter, any
advertisement of wine, distilled spirits,
or malt beverages, if such advertising is
in, or is calculated to induce sale in,
interstate or foreign commerce, or is
disseminated by mail, unless such
advertisement is in conformity with the
provisions of this part.
(b) Exclusion. The provisions of this
part do not apply to a retailer or to the
publisher of any newspaper, periodical,
or other publication, or to a radio or
television or internet broadcast, unless
the retailer or publisher or broadcaster
is engaged in business as a distiller,
brewer, blender, or other producer, or as
an importer or wholesaler of wine,
distilled spirits, or malt beverages, or as
a processor, bottler, or warehouseman
and bottler, of distilled spirits, directly
or indirectly, or through an affiliate.
(c) Substantiation. The substantiation
requirements of this paragraph apply to
any claim made on any advertisement
subject to the requirements of this part.
(1) Reasonable basis in fact. All
claims,
whether implicit or explicit,
§ 14.214.2 Territorial extent.
must have a reasonable basis in fact.
The provisions of this part apply in
Claims that contain express or implied
the 50 States, the District of Columbia,
statements regarding the amount of
and the Commonwealth of Puerto Rico.
support for the claim (such as, ‘‘tests
prove,’’ or ‘‘studies show’’) must have
§ 14.314.3 Delegations of the
the level of substantiation that is
Administrator’s authorities.
claimed. Any advertising claim that
Most of the regulatory authorities of
the Administrator contained in this part does not have a reasonable basis in fact,
or cannot be adequately substantiated
are delegated to ‘‘appropriate TTB
upon the request of the appropriate TTB
officers.’’ To determine which officers
have been delegated specific authorities, officer, will be considered misleading
within the meaning of § 14.14 (a)(2).
see the current version of TTB Order
(2) Evidence that claims are
1135.14, Delegation of the
adequately substantiated. The
Administrator’s Authorities in 27 CFR
appropriate TTB officer may request
part 14, Advertising of Wine, Distilled
that the responsible advertiser provide
Spirits, and Malt Beverages. You may
evidence that advertising claims are
obtain a copy of this order by accessing
the TTB website (https://www.ttb.gov) or adequately substantiated at any time
within a period of five years from the
by mailing a request to the Alcohol and
time the advertisement was last
Tobacco Tax and Trade Bureau,
disseminated or published.
National Revenue Center, 550 Main
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§ 14.514.5 Legibility of mandatory
information.
(a) Statements required by this part
that appear in any written, printed,
electronic, internet, or other graphic
advertisement must be in legible type of
sufficient size and on a contrasting
background so as to be readable under
ordinary conditions.
(b) In the case of signs, billboards, and
displays that are designed for viewing
from a distance, the required name and
address, or name and other contact
information (such as, telephone number,
website, or email), of the responsible
advertiser may appear in lettering or
type size that is smaller than that of the
other mandatory information, provided
that the name and contact information
can be readily ascertained upon closer
examination of the sign, billboard, or
display.
(c) Information required under this
part that appears in an advertisement in
any audio-visual medium must be clear
and conspicuous and understandable to
a consumer viewing or listening to the
advertisement under ordinary
conditions.
(d) Information required under this
part must be presented as being clearly
part of the advertisement and may not
be separated in any manner from other
parts of the advertisement.
(e) If an advertisement covers two or
more products, the information required
under this part that differs between the
products must appear in the
advertisement separately for each
product.
§ 14.614.6
Mandatory statements.
(a) General. Advertisements of wine,
distilled spirits, and malt beverages
must include the following mandatory
information.
(1) Responsible advertiser. The
advertisement must display the
responsible advertiser’s name, city, and
State or the name and other contact
information (such as, telephone number,
website, or email address) where the
responsible advertiser may be contacted.
(2) Class, type, or other designation.
An advertisement must contain a
statement of the class, type, or other
designation that applies to the wine,
distilled spirits, or malt beverage, and
that is required to appear on the label
of the product under subpart I of part 4,
5, or 7 of this chapter. The statement
must be clear and conspicuous and be
legible in accordance with § 14.5.
(3) Exceptions. The following
exceptions apply to the rules in
paragraphs (a)(1) and (2) of this section:
(i) If an advertisement refers to a
general product line or to all of the
wine, distilled spirits, or malt beverage
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products of one company, whether by
the brand name common to all the
products in the line or by the company
name, the only information required is
the name, city, and State or the name
and other contact information of the
responsible advertiser in accordance
with paragraph (a)(1) of this section.
However, this exception does not apply
when only one type of wine, distilled
spirits, or malt beverage product is
marketed under the specific brand name
advertised; and
(ii) In the case of a consumer specialty
item (for example, a T-shirt, hat, bumper
sticker, or refrigerator magnet), the only
information required is the company
name of the responsible advertiser or
the brand name of the wine, distilled
spirits, or malt beverage product.
(b) Additional rules for distilled
spirits. The rules set forth in this
paragraph apply to distilled spirits
advertisements and are in addition to
the rules specified in paragraph (a) of
this section.
(1) Alcohol content—(i) Mandatory
statement. The alcohol content for
distilled spirits must be stated as a
percentage of alcohol by volume in the
manner set forth in § 5.65 of this
chapter.
(ii) Optional statement. The
advertisement may also state the alcohol
content of the distilled spirits product
in degrees of proof if that information
appears immediately adjacent to the
percent-alcohol-by-volume statement
prescribed in paragraph (b)(1)(i) of this
section.
(2) Percentage of neutral spirits and
name of commodity—(i) Production
with neutral spirits. In the case of
distilled spirits (other than cordials,
liqueurs, and specialties) produced by
blending or other processing, if neutral
spirits were used in the production of
the spirits, the advertisement must state
the percentage of neutral spirits so used
and the name of the commodity from
which the neutral spirits were distilled.
The statement of percentage and the
name of the commodity must be in
substantially the following form: ‘‘ll
% neutral spirits distilled from ll
(insert grain, cane products, or fruit as
appropriate)’’; or ‘‘ll% neutral spirits
(vodka) distilled from ll (insert grain,
cane products, or fruit, as appropriate)’’;
or ‘‘ll% grain (cane products), (fruit)
neutral spirits’’, or ‘‘ll% grain
spirits.’’ The statement used under this
paragraph must be identical to that on
the label of distilled spirits to which the
advertisement refers.
(ii) Neutral spirits and gin produced
by continuous distillation. In the case of
neutral spirits or in the case of gin
produced by a process of continuous
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distillation, the advertisement must
state the name of the commodity from
which the neutral spirits or gin was
distilled. The statement of the name of
the commodity must appear in
substantially the following form:
‘‘Distilled from grain,’’ or ‘‘Distilled
from cane products,’’ or ‘‘Distilled from
fruit.’’ The statement used under this
paragraph must be identical to that on
the label of distilled spirits to which the
advertisement refers.
Subpart B—Rules Related to Specific
Practices in Advertisements
§ 14.11 Statements and representations in
advertisements.
(a) General. Sections 14.12 through
14.14 specify rules that apply to
advertisements for wine, distilled
spirits, and malt beverages. Additional
rules that apply only to advertisements
for wine, only to advertisements for
distilled spirits, or only to
advertisements for malt beverages are
contained in §§ 14.15, 14.16, and 14.17,
respectively.
(b) Statement or representation
defined. For purposes of the rules in this
subpart, the term ‘‘statement or
representation’’ includes any statement,
design, device, or representation, and
includes pictorial or graphic designs or
representations as well as written ones.
The term ‘‘statement or representation’’
includes explicit and implicit
statements and representations.
§ 14.12
Regulated practices.
(a) General. The practices, statements,
and representations in this section may
be used on wine, distilled spirits, and
malt beverage labels only when used in
compliance with this subpart.
(b) Statements inconsistent with
labeling. (1) An advertisement may not
contain any statement concerning a
brand or lot of the product that is
inconsistent with any statement
appearing on the label.
(2) Any label depicted on a container
in an advertisement must be covered by
a certificate of label approval (COLA) or
certificate of exemption from label
approval obtained pursuant to part 4, 5,
or 7 of this chapter, except that malt
beverage labels not required to be
covered by a COLA in accordance with
the rules in § 7.21 of this chapter may
also appear on advertisements. In all
cases, the label appearing on an
advertisement must be identical to that
appearing on the container.
(c) Comparative advertising in
general. Comparative advertising for a
wine, distilled spirits, or malt beverage
may not be disparaging of a competitor’s
product and may not deceive or mislead
the consumer.
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(1) Taste tests. Taste test results may
appear in an advertisement comparing
competitors’ products, provided that:
(i) The results are not disparaging,
deceptive, or likely to mislead the
consumer;
(ii) The taste test procedure used must
meet scientifically accepted procedures.
An example of a scientifically accepted
procedure is outlined in the Manual on
Sensory Testing Methods, ASTM
Special Technical Publication 434,
published by the American Society for
Testing and Materials, 1916 Race Street,
Philadelphia, Pennsylvania 19103
(ASTM, 1968, Library of Congress
Catalog Card Number 68–15545); and
(iii) A statement must appear in the
advertisement providing the name and
address of the testing administrator.
(2) [Reserved]
§ 14.13
Prohibited practices.
An advertisement may not contain
any of the following:
(a) Any statement or representation
that is obscene or indecent;
(b) Any statement or representation
that is false or misleading; or
(c) Any subliminal or other deceptive
technique or device that conveys, or
attempts to convey, a message to a
person by means of images or sounds of
a very brief nature that cannot be
perceived at a normal level of
awareness.
§ 14.14 Misleading statements or
representations.
(a) General prohibition—(1)
Misleading statements or
representations. No statement or
representation, irrespective of falsity,
that is misleading to consumers as to the
age, origin, identity, or other
characteristics of the wine, distilled
spirits, or malt beverage, or with regard
to any other material factor may appear
on an advertisement.
(2) Ways in which statements or
representations may be misleading. (i) A
statement or representation is
prohibited, irrespective of falsity, if it
directly creates a misleading
impression, or if it does so indirectly
through ambiguity, omission, inference,
or by the addition of irrelevant
scientific, or technical matter. For
example, an otherwise truthful
statement may be misleading because of
the omission of material information,
the disclosure of which is necessary to
prevent the statement from being
misleading.
(ii) As set forth in § 14.4(c), all claims,
whether implicit or explicit, must have
a reasonable basis in fact. Any claim on
an advertisement that does not have a
reasonable basis in fact, or cannot be
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adequately substantiated upon the
request of the appropriate TTB officer,
is considered misleading.
(b) Disparaging statements. False or
misleading statements that explicitly or
implicitly disparage a competitor’s
product are prohibited.
(1) Examples. (i) An example of an
explicit statement that falsely disparages
a competitor’s product is ‘‘Brand X is
not aged in oak barrels,’’ when such
statement is not true.
(ii) An example of an implicit
statement that disparages competitor’s
products in a misleading fashion is ‘‘We
do not add arsenic to our distilled
spirits,’’ when such a claim may lead
consumers to falsely believe that other
distillers do add arsenic to their
distilled spirits.
(2) This paragraph does not prevent
truthful and accurate comparisons
between products (such as ‘‘Our wine
contains more strawberries than Brand
X’’) or statements of opinion (such as
‘‘We think our beer tastes better than
any other beer on the market’’).
(c) Analyses, standards, or tests. Any
statement, or representation of or
relating to analyses, standards, or tests,
whether or not it is true, that is likely
to mislead the consumer is prohibited.
An example of such a misleading
statement is ‘‘tested and approved by
our research laboratories’’ if the testing
and approval does not in fact have any
significance;
(d) Guarantees. Any statement or
representation relating to guarantees is
prohibited if the appropriate TTB officer
finds it is likely to mislead the
consumer. However, money-back
guarantees are not prohibited.
(e) Government authority. Any
statement or representation that
misleads the consumer to believe that
the wine, distilled spirits, or malt
beverage is produced, blended, bottled,
packed, or sold under Government
authority is prohibited, except that:
(1) A municipal, State, or Federal
permit number may appear in the
advertisement, but the permit number
may not be accompanied by any
additional statement relating to it; and
(2) Such a statement may appear in an
advertisement for distilled spirits if it
conforms to the statement permitted in
subpart E of part 5 of this chapter for
labels of distilled spirits products.
(f) Cross-commodity claims. (1) An
advertisement may not contain a
statement or representation that tends to
create the false or misleading
impression that a product is a different
commodity (as defined in paragraph
(f)(2) of this section), or that it contains
another commodity. For example, the
use of the name of a class or type
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designation recognized in part 4 or 5 of
this chapter is prohibited on a malt
beverage advertisement, if the use of
that name creates a misleading
impression as to the identity of the
product. This prohibition includes the
use of homophones or coined words
that simulate or imitate a class or type
designation. This paragraph does not
prohibit the following on
advertisements:
(i) A truthful and accurate statement
of alcohol content;
(ii) The use of a brand name of a wine
or distilled spirits product as a malt
beverage brand name, of a distilled
spirits or malt beverage product as a
wine brand name, or of a wine or malt
beverage product as a distilled spirits
brand name, provided that the overall
advertisement does not create a
misleading impression about the
identity of the product;
(iii) The use of a wine, distilled
spirits, or malt beverage cocktail name
as a brand name or a distinctive or
fanciful name of another commodity’s
product, provided that a statement of
composition, in accordance with part 4,
5, or 7 of this chapter, as appropriate,
appears in the same field of vision as
the brand name or the distinctive or
fanciful name and the overall
advertisement does not create a
misleading impression about the
identity of the product;
(iv) The use of truthful and accurate
statements about the production of the
product, as part of a statement of
composition or otherwise, such as
‘‘finished in whisky barrels,’’
‘‘fermented with rye,’’ or ‘‘Beer brewed
with chardonnay grapes,’’ so long as
such statements do not create a
misleading impression as to the identity
of the product; or
(v) The use of terms that compare a
product or products of one commodity
to a product or products of a different
commodity without creating a
misleading impression as to the identity
of the product.
(2) When used in this paragraph,
‘‘commodity’’ means wine, distilled
spirits, or malt beverages.
(g) Representations of the armed
forces or flags. Advertisements may not
show an image of any government’s flag
or any representation related to the
armed forces of the United States if the
representation, standing alone or
considered together with any additional
language or symbols, creates an
impression that the product was
endorsed by, made by, used by, or made
under the supervision of the
government represented by that flag or
by the armed forces of the United States.
This section does not prohibit the use of
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a flag as part of a claim of American
origin or another country of origin.
(h) Government seals. Advertisements
may not contain any government seal or
other insignia that is likely to mislead
the consumer to believe that the product
has been endorsed by, made by, used
by, or produced for, under the
supervision of, or in accordance with
the specification of that government.
(i) Health-related statements—(1)
Definitions. When used in this section,
the following terms have the meaning
indicated:
(i) Health-related statement. ‘‘Healthrelated statement’’ means any statement
related to health (other than the health
warning statement required under part
16 of this chapter) and includes any
statement of a curative or therapeutic
nature that, expressly or by implication,
suggest a relationship between the
consumption of alcohol, a wine,
distilled spirits, or malt beverage
product, or any substance found within
such a product, and health benefits or
effects on health. The term includes
both specific health claims and general
references to alleged health benefits or
effects on health associated with the
consumption of alcohol, a wine,
distilled spirits, or malt beverage
product, or any substance found within
such a product, as well as health-related
directional statements. The term also
includes statements and claims that
imply that a physical or psychological
sensation results from consuming the
wine, distilled spirits, or malt beverage
product, as well as statements and
claims of nutritional value (for example,
statements of vitamin content).
Numerical statements of caloric,
carbohydrate, protein, and fat content of
the product do not constitute claims of
nutritional value.
(ii) Specific health claim. ‘‘Specific
health claim’’ means a type of healthrelated statement that, expressly or by
implication, characterizes the
relationship of alcohol, a wine, distilled
spirits, or malt beverage product, or any
substance found within such a product,
to a disease or health-related condition.
Implied specific health claims include
statements, symbols, vignettes, or other
forms of communication that suggest,
within the context in which they are
presented, that a relationship exists
between alcohol, a wine, distilled spirits
or malt beverage product, or any
substance found within such a product,
and a disease or health-related
condition.
(iii) Health-related directional
statement. ‘‘Health-related directional
statement’’ means a type of healthrelated statement that directs or refers
consumers to a third party or other
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source for information regarding the
effects on health of alcohol or
consumption of wine, distilled spirits,
or malt beverages.
(2) Rules for advertising—(i) Healthrelated statements. In general, an
advertisement for a wine, distilled
spirits, or malt beverage product may
not contain any health-related statement
that is untrue in any particular or tends
to create a misleading impression as to
the effects on health of alcohol
consumption. TTB will evaluate such
statements on a case-by-case basis and
may require as part of the health-related
statement a disclaimer or some other
qualifying statement to dispel any
misleading impression conveyed by the
health-related statement. Such a
disclaimer or other qualifying statement
must appear as prominently as the
health-related statement.
(ii) Specific health claims. A specific
health claim will not be considered
misleading if it is truthful and
adequately substantiated by scientific or
medical evidence; it is sufficiently
detailed and qualified with respect to
the categories of individuals to whom
the claim applies; it adequately
discloses the health risks associated
with both moderate and heavier levels
of alcohol consumption; and it outlines
the categories of individuals for whom
any levels of alcohol consumption may
cause health risks. This information
must appear as part of the specific
health claim and as prominently as the
specific health claim.
(iii) Health-related directional
statements. A health-related directional
statement is presumed misleading
unless it—
(A) Directs consumers in a neutral or
other non-misleading manner to a third
party or other source for balanced
information regarding the effects on
health of alcohol or wine, distilled
spirits, or malt beverage consumption;
and
(B)(1) Includes as part of the healthrelated directional statement the
following disclaimer: ‘‘This statement
should not encourage you to drink or to
increase your alcohol consumption for
health reasons’’; or
(2) Includes as part of the healthrelated directional statement, and as
prominently as the health-related
directional statement, some other
qualifying statement that the
appropriate TTB officer finds is
sufficient to dispel any misleading
impression conveyed by the healthrelated directional statement.
§ 14.15
Additional rules for wine.
The rules in this section apply to
advertisements for wine and are in
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addition to the rules that apply to all
advertisements as set forth in §§ 14.12
through 14.14.
(a) Statements in advertisements. An
advertisement for wine may not contain:
(1) Any statement of bonded wine
cellar and bonded winery numbers,
unless stated immediately adjacent to
the name and address of the person
operating the wine cellar or winery. A
statement of bonded wine cellar and
bonded winery numbers may appear in
the following form: ‘‘Bonded Wine
Cellar No. ll,’’ ‘‘Bonded Winery
No. ll,’’ ‘‘B.W.C. No. ll,’’ ‘‘B.W.
No. ll.’’ No additional reference to
the statement may be made, and the
statement may not be used in a way that
might give the impression that the wine
has been made or matured under
government supervision or in
accordance with government
specifications or standards; or
(2) Any statement, design, device, or
representation that relates to alcohol
content or that tends to create the
impression that a wine is intoxicating or
has intoxicating qualities, other than a
truthful and accurate statement of
alcohol content.
(b) Statement of age. Subject to
paragraph (c) of this section, an
advertisement for wine may not contain
any statement of age or other
representation relative to age (including
words, symbols, or other devices in any
brand name or mark), except for:
(1) Vintage dates on vintage wine, in
accordance with § 4.95 of this chapter;
(2) References relating to methods of
wine production involving storage or
aging which are used for the advertised
wine; and
(3) Use of the word ‘‘old’’ as part of
a brand name.
(c) Statement of bottling date. For
purposes of paragraph (b) of this
section, a statement of the bottling date
of a wine will not be deemed to be a
representation relative to age, provided
that the statement appears in the
advertisement without undue emphasis
in the following form: ‘‘Bottled
in ll’’ (inserting the year in which the
wine was bottled).
(d) Miscellaneous date statements.
Except in the case of vintage dates and
bottling dates as provided in paragraphs
(b)(1) and (c) of this section, an
advertisement of wine may not bear any
date unless, in addition to the date and
immediately adjacent to the date and in
the same size and kind of printing, a
statement of the significance or
relevance of the date is provided, such
as ‘‘established’’ or ‘‘founded in.’’ If the
date refers to the date of establishment
of any business or brand name, the date
and its accompanying statement must
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appear immediately adjacent to the
name of the person, company, or brand
name to which it relates if the
appropriate TTB officer finds that this is
necessary in order to prevent confusion
as to the person, company, or brand
name to which the establishment date
applies.
(e) Statements indicative of origin. An
advertisement for wine may not contain
any statement or representation that
indicates or implies an origin other than
the true place of origin of the wine,
except for brand names of geographical
significance, when used in accordance
with § 4.64(c) of this chapter, and semigeneric designations, when used in
accordance with § 4.174 of this chapter.
§ 14.16
Additional rules for distilled spirits.
The rules in this section apply to
advertisements for distilled spirits
products and are in addition to the rules
that apply to all advertisements as set
forth in §§ 14.12 through 14.14.
(a) Statements in advertisements. An
advertisement for a distilled spirits
product may not contain:
(1) The words ‘‘bond,’’ ‘‘bonded,’’
‘‘bottled in bond,’’ or ‘‘aged in bond,’’ or
any other phrase containing ‘‘bond’’ or
‘‘bonded,’’ unless those words or
phrases appear in the advertisement in
the same manner and form as prescribed
in § 5.88 of this chapter for a label for
the distilled spirits product in question;
(2) A statement regarding multiple
distillations, such as ‘‘double distilled’’
or ’’triple distilled,’’ unless used in
accordance with the rules in § 5.89 of
this chapter; or
(3) The word ‘‘pure’’ unless it:
(i) Refers to a particular ingredient
used in the production of the distilled
spirits, and is a truthful representation
about that ingredient;
(ii) Is part of the bona fide name of a
permittee or retailer for whom the
distilled spirits are bottled; or
(iii) Is part of the bona fide name of
the permittee who bottled the distilled
spirits.
(b) Statements of age. (1) Except at
provided in paragraph (b)(2) of this
section, an advertisement for a distilled
spirits product may not contain any
statement, design, or device, directly or
by implication, concerning age or
maturity of any brand or lot of distilled
spirits, unless a statement of age in
accordance with § 5.73 of this chapter
appears on the label of the advertised
product. When any such statement,
design, or device concerning age or
maturity is contained in an
advertisement, it must include
(immediately adjacent to it and with
substantially equal conspicuousness) all
parts of the statement concerning age
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and percentages required to appear on a
label of the product under part 5 of this
chapter.
(2) An advertisement for any whisky
or brandy (except immature brandies)
for which a statement of age is not
required on a label, or an advertisement
for any rum or Tequila that has been
aged for four years or more, may contain
an inconspicuous, general
representation as to age or maturity, or
other similar representations, even
though a specific age statement does not
appear on the label of the advertised
product or in the advertisement itself.
(c) Place of origin and producer or
processor. An advertisement for a
distilled spirits product may not contain
any statement, design, device, or
representation, stating or implying that
the distilled spirits were manufactured
in, or imported from, a country or place
other than their actual country or place
of origin, or that the distilled spirits
were produced or processed by a person
who was not in fact the actual producer
or processor.
§ 14.17 Additional rules for malt
beverages.
The rules in this section apply to
advertisements for malt beverages and
are in addition to the prohibited
practice rules that apply to for all wine,
distilled spirits, or malt beverage
advertisements as set forth in §§ 14.12
through14.14.
(a) ‘‘Bonded’’ and other terms. An
advertisement may not contain the
words ‘‘bonded,’’ ‘‘bottled in bond,’’
‘‘aged in bond,’’ ‘‘bonded age,’’ ‘‘bottled
under Customs supervision,’’ or other
phrases containing these or synonymous
terms that may create a misleading
impression as to governmental
supervision over production or bottling.
(b) Statement of class. An
advertisement may not identify a
product containing less than one-half of
one percent (0.5%) of alcohol by volume
with the designation ‘‘beer,’’ ‘‘lager
beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ or
‘‘stout,’’ or with any other class or type
designation commonly applied to
fermented malt beverages containing
one-half of one percent or more of
alcohol by volume. In addition, an
advertisement may identify a product
with the class designation ‘‘ale,’’
‘‘porter,’’ or ‘‘stout’’ only if the product
was fermented at comparatively high
temperature, was produced without the
use of coloring or flavoring materials
(other than those recognized in standard
brewing practices), and possesses the
characteristics generally attributed to
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ale, porter, or stout. Any statement of
class or designation used in an
advertisement should be identical to the
designation on the label.
(c) Strength claims—(1) General. For
purposes of this section, the term
‘‘strength claim’’ means a statement that
directly or indirectly makes a claim
about the alcohol content of the
product. This section does not apply to
the use of the terms ‘‘low alcohol,’’
‘‘reduced alcohol,’’ ‘‘non-alcoholic,’’
and ‘‘alcohol-free’’ in accordance with
§ 7.65 of this chapter; to claims about
low alcohol content in general; or to the
use of an alcohol content statement in
accordance with § 7.65 of this chapter.
(2) Prohibition. The use of a strength
claim on malt beverage advertisements
is prohibited if it misleads consumers
by implying that products should be
purchased or consumed on the basis of
higher alcohol strength. Examples of
strength claims are ‘‘full strength,’’
‘‘extra strength,’’ ‘‘high test,’’ and ‘‘high
proof.’’
Subpart C—Penalties and Compromise
of Liability
§ 14.21
Criminal penalties.
A violation of the advertising
provisions of 27 U.S.C. 205(f) is
punishable as a misdemeanor. See 27
U.S.C. 207 for the statutory provisions
relating to criminal penalties, consent
decrees, and injunctions.
§ 14.22
Conditions of basic permit.
A basic permit is conditioned upon
compliance with the requirements of 27
U.S.C. 205, including the advertising
provisions of this part. A willful
violation of the conditions of a basic
permit provides grounds for the
revocation or suspension of the permit,
as applicable, as set forth in part 1 of
this chapter.
§ 14.23
Compromise.
Pursuant to 27 U.S.C. 207, the
appropriate TTB officer is authorized,
with respect to any violation of 27
U.S.C. 205, to compromise the liability
arising with respect to such violation
upon payment of a sum not in excess of
$500 for each offense, to be collected by
the appropriate TTB officer and to be
paid into the Treasury as miscellaneous
receipts.
Subpart D—Paperwork Reduction Act
§ 14.31 OMB control numbers assigned
under the Paperwork Reduction Act.
(a) Purpose. This subpart displays the
control numbers assigned to information
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60693
collection requirements in this part by
the Office of Management and Budget
(OMB) under the Paperwork Reduction
Act of 1995, Public Law 104–13.
(b) Chart. The following chart
identifies each section in this part that
contains an information collection
requirement and the OMB control
number that is assigned to that
information collection requirement.
Section where
contained
Current OMB Control No.
14.4 ................
14.6 ................
14.12 ..............
14.14 ..............
14.15 ..............
14.16 ..............
14.17 ..............
New information collection.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
1513–0087.
PART 19—DISTILLED SPIRITS
PLANTS
5. The authority citation continues to
read as follows:
■
Authority: 19 U.S.C. 81c, 1311; 26 U.S.C.
5001, 5002, 5004–5006, 5008, 5010, 5041,
5061, 5062, 5066, 5081, 5101, 5111–5114,
5121–5124, 5142, 5143, 5146, 5148, 5171–
5173, 5175, 5176, 5178–5181, 5201–5204,
5206, 5207, 5211–5215, 5221–5223, 5231,
5232, 5235, 5236, 5241–5243, 5271, 5273,
5301, 5311–5313, 5362, 5370, 5373, 5501–
5505, 5551–5555, 5559, 5561, 5562, 5601,
5612, 5682, 6001, 6065, 6109, 6302, 6311,
6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301,
9303, 9304, 9306.
6. In § 19.356, revise paragraphs (c)
and (d) to read as follows:
■
§ 19.356
Alcohol content and fill.
*
*
*
*
*
(c) Variations in alcohol content.
Variations in alcohol content may not
exceed 0.3 percent alcohol by volume
above or below the alcohol content
stated on the label.
(d) Example. Under paragraph (c) of
this section, a product labeled as
containing 40 percent alcohol by
volume would be acceptable if the test
for alcohol content found that it
contained no less than 39.7 percent
alcohol by volume and no more than
40.3 percent alcohol by volume.
Signed: August 28, 2018.
John J. Manfreda,
Administrator.
Approved: November 1, 2018.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade and
Tariff Policy).
[FR Doc. 2018–24446 Filed 11–23–18; 8:45 am]
BILLING CODE–P
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]]>Agencies
[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)]
[Proposed Rules]
[Pages 60562-60693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24446]
[[Page 60561]]
Vol. 83
Monday,
No. 227
November 26, 2018
Part II
Department of the Treasury
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Alcohol and Tobacco Tax and Trade Bureau
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27 CFR Parts 4, 5, 7, et al.
Modernization of the Labeling and Advertising Regulations for Wine,
Distilled Spirits, and Malt Beverages; Proposed Rule
Federal Register / Vol. 83 , No. 227 / Monday, November 26, 2018 /
Proposed Rules
[[Page 60562]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 4, 5, 7, 14, and 19
[Docket No. TTB-2018-0007; Notice No. 176]
RIN 1513-AB54
Modernization of the Labeling and Advertising Regulations for
Wine, Distilled Spirits, and Malt Beverages
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) is
proposing to amend its regulations governing the labeling and
advertising of wine, distilled spirits, and malt beverages. TTB
proposes to reorganize and recodify these regulations in order to
simplify and clarify regulatory standards, incorporate guidance
documents and current policy into the regulations, and reduce the
regulatory burden on industry members where possible.
DATES: TTB must receive comments on this proposal on or before March
26, 2019.
ADDRESSES: Please send your comments on this document to one of the
following addresses:
Internet: https://www.regulations.gov (via the online
comment form for this document as posted within Docket No. TTB-2018-
0007 at ``Regulations.gov,'' the Federal e-rulemaking portal);
U.S. Mail: Director, Regulations and Rulings Division,
Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12,
Washington, DC 20005; or
Hand delivery/courier in lieu of mail: Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street NW, Suite 400, 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.
FOR FURTHER INFORMATION CONTACT: Christopher M. Thiemann or Kara T.
Fontaine, Regulations and Rulings Division, Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005; telephone
202-453-2265.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. TTB's Statutory Authority
B. Current TTB Alcohol Beverage Labeling and Advertising
Regulations
C. The Certificate of Label Approval (COLA) Process
D. Modernization of the Alcohol Beverage Labeling and
Advertising Regulations
E. Plain Language Principles
F. Scope of this Rulemaking
II. Proposed Revisions
A. General Reorganization of the Parts
B. Proposed Changes That Apply to Parts 4, 5 and 7
C. Proposed Changes Specific to 27 CFR Part 4 (Wine)
D. Proposed Changes Specific to 27 CFR Part 5 (Distilled
Spirits)
E. Proposed Changes Specific to 27 CFR Part 7 (Malt Beverages)
F. Proposed 27 CFR Part 14 (Advertising)
G. Impact on Public Guidance Documents
H. Impact on Current Labels
III. Derivation Tables for Proposed Parts 4, 5, 7, and 14
IV. Public Participation
A. Comments Sought
B. Submitting Comments
C. Confidentiality
D. Public Disclosure
V. Regulatory Analyses and Notices
A. Regulatory Flexibility Act
B. Executive Order 12866
C. Paperwork Reduction Act
VI. Drafting Information
List of Subjects
Authority and Issuance
I. Background
A. TTB's Statutory Authority
Sections 105(e) and 105(f) of the Federal Alcohol Administration
Act (FAA Act), 27 U.S.C. 205(e) and 205(f), set forth standards for the
regulation of the labeling and advertising of wine, distilled spirits,
and malt beverages. The FAA Act was enacted in 1935 and also contains
provisions regarding the requirements for basic permits that allow
people to engage in business as producers, importers, and wholesalers,
and the regulation of unfair trade practices.
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 of the Treasury (the
Secretary) has delegated various authorities to administer and enforce
this law to the TTB Administrator through Treasury Department Order
120-01 (dated December 10, 2013, superseding Treasury Order 120-01
(Revised), ``Alcohol and Tobacco Tax and Trade Bureau,'' dated January
24, 2003).
1. History of the FAA Act
After the repeal of Prohibition by the enactment of the Twenty-
First Amendment in 1933, the alcohol beverage industry was subject to
Federal regulation under the codes of fair competition authorized by
the National Industrial Recovery Act. By Executive order, the President
created the Federal Alcohol Control Administration to administer the
codes of fair competition for the alcohol beverage industry. In 1935,
the Supreme Court struck down the provisions of the National Industrial
Recovery Act as unconstitutional. See Schechter Poultry Corp. v. United
States, 295 U.S. 495 (1935). After that decision, in order to provide
for the orderly regulation of the alcohol beverage industry, Congress
enacted the FAA Act in August of 1935.
The legislative history of the FAA Act provides some insight
concerning the general purpose of the FAA Act's labeling provisions,
which authorize TTB to regulate the labeling of alcohol beverage
products:
* * * the provisions of this bill show that the purpose was to
carry that regulation into certain particular fields in which
control of interstate commerce in liquors was paramount and
necessary. The purpose was to provide such regulations, not laid
down in statute, so as to be inflexible, but laid down under the
guidance of Congress, under general principles, by a body which
could change them as changes were found necessary. Those regulations
were intended to insure that the purchaser should get what he
thought he was getting, that representations both in labels and in
advertising should be honest and straight-forward and truthful. They
should not be confined, as the pure-food regulations have been
confined, to prohibitions of falsity, but they should also provide
for the information of the consumer, that he should be told what was
in the bottle, and all the important factors which were of interest
to him about what was in the bottle. (See Hearings on H.R. 8539
before the Committee on Ways and Means, House of Representatives,
74th Cong., 1st Sess. 10 (1935).)
2. Labeling and Advertising Provisions of the FAA Act
Section 105(e) of the FAA Act, codified in the United States Code
at 27 U.S.C. 205(e), sets forth requirements for labeling of wine
(which is defined in the FAA Act to cover only wines that contain at
least 7 percent alcohol by volume), distilled spirits, and malt
beverages (collectively referred to as ``alcohol beverages'' throughout
this document). This section of the FAA Act authorizes the Secretary to
issue regulations to prevent deception of the consumer, to provide the
consumer with ``adequate information'' as to the identity and quality
of the product, to prohibit false or misleading statements, and to
provide information as to the alcohol content of the product.
3. FAA Act Prohibition of Sale or Shipment of Mislabeled Products
Section 105(e) of the FAA Act (27 U.S.C. 205(e)) also prohibits the
sale or
[[Page 60563]]
shipment in interstate or foreign commerce of wine, distilled spirits,
or malt beverages that are not bottled, packaged, and labeled in
accordance with regulations issued by the Secretary. Violations of
section 105(e) are misdemeanors that are punishable by a fine. See 27
U.S.C. 207.
The prohibition in section 105(e) applies to any person engaged in
business as a distiller, brewer, rectifier, blender, or other producer,
or as an importer or wholesaler of wine, distilled spirits or malt
beverages, or as a bottler, or warehouseman and bottler, of distilled
spirits. The law makes it unlawful for such persons, directly or
indirectly or through an affiliate, to sell or ship, or deliver for
sale or shipment, or otherwise introduce, in interstate or foreign
commerce, or to receive therein, or to remove from customs custody for
consumption, any wine, distilled spirits, or malt beverages in bottles,
unless the products are bottled, packaged, and labeled in conformity
with the regulations.
4. Authorization of Labeling Regulations in the FAA Act
The FAA Act provides specific guidance as to what the labeling
regulations should cover, but builds in a ``zone of discretion'' for
TTB to exercise in implementing these regulations. See Center for
Science in the Public Interest v. Department of the Treasury, 797 F.2d
995 (D.C. Cir. 1986). The following provides a summary of the statutory
provisions with regard to the labeling of wine, distilled spirits, and
malt beverages under section 105(e) of the FAA Act (27 U.S.C. 205(e)).
a. Prohibition of consumer deception. Section 105(e)(1) of the FAA
Act (27 U.S.C. 205(e)(1)) authorizes the issuance of regulations that
prohibit deception of the consumer with respect to such products or the
quantity thereof, and prohibit, irrespective of falsity, such
statements relating to age, manufacturing processes, analyses,
guarantees, and scientific or irrelevant matters that the Secretary
finds to be likely to be misleading to the consumer. This section
provides the basis for many of TTB's regulations on prohibited
practices with respect to labeling statements.
b. Adequate information as to the identity, quality, and alcohol
content of products, as well as the net contents and the manufacturer/
bottler/importer. Section 105(e)(2) of the FAA Act (27 U.S.C.
205(e)(2)) authorizes the issuance of regulations to ensure that labels
provide the consumer with adequate information as to the identity and
quality of the product, the alcohol content thereof, the net contents
of the package, and the manufacturer or bottler or importer of the
product. This section provides the basis for most of the mandatory
information requirements in the TTB labeling regulations.
With regard to alcohol content, section 105(e)(2) sets out
different requirements for wine, distilled spirits, and malt beverages.
This section provides the Secretary with the authority to issue
regulations that require alcohol content statements on labels of
distilled spirits products and for wines with an alcohol content of
over 14 percent alcohol by volume, leaving such statements optional for
wines with an alcohol content at or below 14 percent. Furthermore, the
FAA Act contains language that specifically prohibits placement of
alcohol content statements on malt beverage labels, unless required by
State law. In 1995, that statutory ban was struck down on First
Amendment grounds by the U.S. Supreme Court in Rubin v. Coors Brewing
Co., 514 U.S. 476 (1995) (hereinafter referred to as the ``Coors''
decision).
c. Statement of neutral spirits. Section 105(e)(3) of the FAA Act
(27 U.S.C. 205(e)(3)) authorizes the issuance of regulations that
require an accurate statement in the case of distilled spirits (other
than cordials, liqueurs, and specialties) produced by blending or
rectification, if neutral spirits have been used in the production
thereof, informing the consumer of the percentage of neutral spirits so
used and of the name of the commodity from which such neutral spirits
have been distilled, or in the case of neutral spirits or of gin
produced by a process of continuous distillation, the name of the
commodity from which distilled. These very specific statutory
provisions are incorporated into the TTB distilled spirits labeling
regulations.
d. Prohibition of statements that are disparaging, false,
misleading, obscene, or indecent. Section 105(e)(4) (27 U.S.C.
205(e)(4)) authorizes the issuance of regulations to prohibit labeling
statements that are disparaging of a competitor's products or are
false, misleading, obscene or indecent. This provision is reflected in
TTB's current regulations on prohibited practices.
e. Prohibition of implied endorsements that are false or
misleading. Section 105(e)(5) (27 U.S.C. 205(e)(5)) authorizes the
issuance of regulations that prevent deception of the consumer by use
of a trade or brand name that is the name of any living individual of
public prominence, or existing private or public organization, or is a
name that is in simulation or an abbreviation thereof, and will prevent
the use of a graphic, pictorial, or emblematic representation of any
such individual or organization, if the use of such name or
representation is likely to falsely lead the consumer to believe that
the product has been endorsed, made or used by, or produced for, or
under the supervision of, or in accordance with the specifications of,
such individual or organization. Certain ``grandfathering'' provisions
are included in this section. These provisions are incorporated into
the current regulations on prohibited practices.
5. Prohibition of Alteration, Mutilation, Destruction, Obliteration, or
Removal of Labels
Section 105(e) makes it unlawful for any person to alter, mutilate,
destroy, obliterate, or remove any mark, brand, or label upon wine,
distilled spirits, or malt beverages held for sale in interstate or
foreign commerce or after shipment therein. An exception is made where
the activity is authorized by Federal law. The FAA Act also authorizes
the Secretary to issue regulations authorizing relabeling for the
purposes of compliance with the requirements of section 105(e) or of
State law. These regulations are found in parts 4, 5 and 7 of 27 CFR.
6. Certificate of Label Approval Requirements
Section 105(e) of the FAA Act sets out very specific requirements
for the issuance of certificates of label approval (COLAs) by the
Secretary. The law provides that ``[i]n order to prevent the sale or
shipment or other introduction of distilled spirits, wine, or malt
beverages in interstate or foreign commerce, if bottled, packaged, or
labeled in violation of the requirements of this subsection,'' certain
persons are required to obtain a COLA prior to bottling distilled
spirits, wine, or malt beverages.
The persons covered by this requirement under the law are bottlers
of distilled spirits; producers, blenders, and wholesalers of wine, and
proprietors of a bonded wine storeroom; and brewers and wholesalers of
malt beverages. With regard to imported products, the law provides that
no person shall remove from customs custody, in bottles, for sale or
any other commercial purpose, distilled spirits, wine, or malt
beverages, without first obtaining a COLA. The law provides that such
COLAs are to be issued in such manner and form as the Secretary shall
prescribe by regulations.
The law goes on to allow for the issuance of certificates of
exemption,
[[Page 60564]]
pursuant to regulations issued by the Secretary, when an applicant has
shown to the satisfaction of the Secretary that the wine, distilled
spirits, or malt beverages to be bottled by the applicant are not to be
sold, or offered for sale, or shipped or delivered for shipment, or
otherwise introduced, in interstate or foreign commerce. The law
provides for the issuance of these certificates to bottlers of
distilled spirits; producers, blenders, or wholesalers of wine, or
proprietors of a bonded wine storeroom; and brewers and wholesalers of
malt beverages. However, the law does not authorize the issuance of
certificates of exemption to persons removing alcohol beverages in
containers from customs custody, presumably because those products will
by definition be introduced in interstate or foreign commerce.
7. Advertising Provisions of the FAA Act
Section 105(f) of the FAA Act (27 U.S.C 205(f)) provides similar
authority to the Secretary to prescribe regulations with respect to the
advertising of wine, distilled spirits, and malt beverages.
The Secretary is authorized to prescribe regulations that will
prevent deception of the consumer and to prohibit, irrespective of
falsity, such statements relating to age, manufacturing processes,
analyses, guarantees, and scientific or irrelevant matters that the
Secretary finds to be likely to mislead the consumer. See 27 U.S.C.
205(f)(1). The Secretary is also authorized to prescribe regulations to
ensure that advertisements provide the consumer with adequate
information as to the identity and quality of the products advertised,
the alcohol content thereof, and the person responsible for the
advertisement. See 27 U.S.C. 205(f)(2). The statute bans alcohol
content statements on advertisements of both wine and malt beverages;
this provision was not the subject of the Supreme Court's decision in
Coors.
The FAA Act contains advertising provisions that are very similar
to the labeling provisions with regard to disclosure of neutral spirits
(27 U.S.C. 205(f)(3)) and the prohibition of statements that are
disparaging, false, misleading, obscene, or indecent (27 U.S.C.
205(f)(4)). The FAA Act also authorizes the issuance of regulations to
prevent advertising statements that are inconsistent with any statement
on the labeling of the products advertised. (27 U.S.C. 205(f)(5)).
8. Special Rules for Malt Beverages Under the FAA Act
The statutory requirements for malt beverages under the FAA Act
differ from the requirements for distilled spirits and wine. Most
notably for purposes of this document, the labeling provisions of the
FAA Act apply to the labeling of malt beverages sold or shipped or
delivered for shipment or otherwise introduced into or received in any
State from any place outside of that State ``only to the extent that
the law of such State imposes similar requirements with respect to the
labeling'' of malt beverages sold within that State. See 27 U.S.C.
205(f).
The penultimate paragraph of section 105(f) also provides that the
advertising provisions of the FAA Act apply to the advertising of malt
beverages intended to be sold or shipped or delivered for shipment or
otherwise introduced into or received in any State from any place
outside of that State, only to the extent that the law of that State
imposes ``similar requirements'' with respect to the advertising of
malt beverages to be sold within that State.
9. Alcoholic Beverage Labeling Act (ABLA)
The Alcoholic Beverage Labeling Act of 1988 (ABLA) requires that a
specific health warning statement appear on the labels of all
containers of alcohol beverages for sale or distribution in the United
States. See 27 U.S.C. 215. This requirement applies to both interstate
and intrastate sale and distribution of alcoholic beverages. In
addition, the health warning statement must appear on containers of
alcoholic beverages that are sold, distributed, or shipped to members
or units of the U.S. Armed Forces, including those located outside the
United States.
The health warning statement required by ABLA advises consumers of
the risks of birth defects to pregnant women, impairment of the ability
to operate a car or other machinery, and other potential health
problems resulting from the consumption of alcoholic beverages. As
stated in 27 U.S.C. 213:
The Congress finds that the American public should be informed
about the health hazards that may result from the consumption or
abuse of alcoholic beverages, and has determined that it would be
beneficial to provide a clear, nonconfusing reminder of such
hazards, and that there is a need for national uniformity in such
reminders in order to avoid the promulgation of incorrect or
misleading information * * *.
ABLA provides that no State may require any statement concerning
alcoholic beverages and health, other than the required health warning
statement, on any alcoholic beverage container, box, carton, or other
package that contains such a container. See 27 U.S.C. 216.
This proposed rule does not affect ABLA labeling requirements.
10. Internal Revenue Code Marking Requirements
In addition to the FAA Act and ABLA, Chapter 51 of the Internal
Revenue Code of 1986 (IRC), (26 U.S.C. 5001 et seq.), sets forth
certain marking requirements for alcohol beverage products. Chapter 51
of the IRC imposes Federal excise taxes on beer, wine, and distilled
spirits, and provides for the regulation of alcohol beverages to
protect the revenue associated with those taxes. The tax rates differ
depending on the product, and the marking requirements provide for the
proper determination of tax liability based on the identity of the
product.
This proposed rule does not amend IRC labeling requirements.
However, some IRC labeling regulations require compliance with certain
FAA Act labeling regulations by cross-referencing labeling provisions
in 27 CFR parts 4, 5 or 7, as applicable.
B. Current TTB Alcohol Beverage Labeling and Advertising Regulations
1. History
The first regulations implementing the labeling and advertising
provisions of the FAA Act were promulgated in 1936 by the Federal
Alcohol Administration (FAA). Over the next several decades, various
amendments to these regulations were published by TTB's other
predecessor agencies, the Internal Revenue Service (IRS), and the
Bureau of Alcohol, Tobacco and Firearms (ATF). TTB assumed
responsibility for the enforcement and implementation of these
regulations in January of 2003, pursuant to the Homeland Security Act
of 2002.
2. FAA Act-Based Regulations
The TTB regulations that implement the labeling and advertising
provisions of the FAA Act, as they relate to wine, distilled spirits,
and malt beverages, are set forth in chapter I of title 27 of the Code
of Federal Regulations (27 CFR chapter I). Specifically, these
regulations are codified in 27 CFR part 4, Labeling and Advertising of
Wine (27 CFR part 4); 27 CFR part 5, Labeling and Advertising of
Distilled Spirits (27 CFR part 5); and 27 CFR part 7, Labeling and
Advertising of Malt Beverages (27 CFR part 7).
a. Mandatory and prohibited labeling information. The TTB
regulations
[[Page 60565]]
contained in 27 CFR parts 4, 5, and 7 require that all wine, distilled
spirits, and malt beverages sold or shipped in, or otherwise introduced
into, interstate commerce bear labels that contain certain mandatory
information. The regulations also set conditions on the use of certain
non-mandatory information and specifically prohibit labeling statements
that are false or tend to create a misleading impression.
Provisions in parts 4, 5, and 7 currently require similar mandatory
information to appear on labels of wine, distilled spirits, and malt
beverages, with some exceptions and with some notable differences among
the commodities. The regulations in some circumstances also contain
provisions regarding the placement of the mandatory information.
Commodity-specific rules are discussed more fully in later sections of
this document, but a general description of the current labeling
requirements is provided here.
The mandatory information that must appear on alcohol beverage
labels includes such things as the brand name of the product; a
statement of the class, type, or other designation of the product; the
name and address of the bottler or importer; a statement of the net
contents; and declarations relating to sulfites or added colors in the
product. Alcohol content statements, expressed as a percentage of
alcohol by volume, are required for distilled spirits, wine over 14
percent alcohol by volume, and certain flavored malt beverages. These
requirements, as well as certain exceptions to these requirements, are
set forth later in this preamble.
With regard to the class, type, or other designation, the
regulations specify and describe 9 ``classes'' of wine, including
``grape wine'' and ``fruit wine,'' and 12 ``classes'' of distilled
spirits, including ``whisky'' and ``brandy.'' Some classes are further
subdivided into ``types.'' For example, types of ``grape wine'' include
``table wine'' and ``dessert wine,'' while types of whisky include
``bourbon whisky'' and ``blended whisky.'' For malt beverages, the TTB
regulations refer to certain classes but do not provide specific
standards of identity for those classes. Instead, the regulations
provide that statements of class and type must ``conform to the
designation of the product as known to the trade.''
If a wine or distilled spirit does not fall within any class, and
if a malt beverage is not known to the trade under a particular
designation, the regulations require that a truthful and adequate
statement of composition appear on the label as the statement of class
and type. While the term ``statement of composition'' is not currently
defined in the regulations, TTB's general policy has been to require
that such a statement identify the base product and any added flavoring
or coloring materials. For example, a statement of composition may be
``grape wine with raspberry flavor added,'' ``a blend of vodka and
coconut liqueur,'' or ``ale brewed with watermelon juice.''
As noted above, the ``net contents'' must appear on containers.
This is required for all three commodities. TTB regulations provide
standards of fill for wine and distilled spirits products but not for
malt beverages. This means that the net contents of wine and distilled
spirits containers must be consistent with specified quantities
prescribed by the standards of fill requirements (such as 750
milliliters).
Certain types of information or representations are prohibited from
appearing on alcohol beverage labels, and these are set forth in
regulations entitled ``prohibited practices.'' See current 27 CFR 4.39,
5.42, and 7.29, for wine, distilled spirits, and malt beverages,
respectively. Some labeling practices are prohibited outright on
alcohol beverage labels for any of the commodities. For example, no
false or obscene statement may appear on any alcohol beverage label or
container. Other practices are prohibited if presented in a manner that
is misleading.
Some practices may be prohibited for just one of the commodities.
For example, existing regulations prohibit certain uses of the term
``pure'' on distilled spirits labels. Other labeling practices may be
used on labels if they comply with certain rules. These include the use
of a living person's name or likeness and statements making claims
about whether the product is organic.
b. Alcohol advertising regulations. TTB also promulgates
regulations covering the advertising of wine, distilled spirits, and
malt beverages. These regulations prescribe mandatory information that
must be included in an advertisement (such as identification of the
responsible party) and also prohibit certain practices similar to the
prohibited practices for labels. The advertising regulations are
currently found in subpart G of part 4, subpart H of part 5, and
subpart F of part 7.
3. TTB's ABLA-Based Regulations
As previously noted, all alcohol beverages bottled or imported for
sale or distribution in the United States must bear the health warning
statement required by the ABLA, even if the product is not sold in
interstate commerce. The regulations promulgated under the authority of
the ABLA are set forth in 27 CFR part 16, Alcoholic Beverage Health
Warning Statement (27 CFR part 16). As noted above, this proposal does
not affect ABLA labeling requirements.
4. TTB's IRC Marking Regulations
Finally, regulations implementing the IRC marking requirements
appear in 27 CFR parts 19, 24, and 25 (relating to, respectively,
domestic producers and bottlers of distilled spirits, wines, and beer),
as well as 27 CFR parts 26, 27, and 28 (relating to distilled spirits,
wine, and beer that are, respectively, brought into the United States
from Puerto Rico and the Virgin Islands, imported into the United
States, and exported from the United States). As noted above, this
proposal does not affect these IRC-based regulations.
C. The Certificate of Label Approval (COLA) Process
As noted above, a person who intends to bottle wine, distilled
spirits, or malt beverages, or remove those products from customs
custody in bottles, for introduction into interstate or foreign
commerce must, before doing so, obtain approval of the labels for the
bottles through a COLA issued by TTB. Currently, each application for a
COLA is reviewed by a TTB specialist for compliance with the FAA Act
and TTB regulations. In fiscal year 2015, TTB received over 153,000
applications for label approval. The time between the date of
application and final TTB determination on the application averaged
approximately 24 days.
In part, the increase in the number of COLA applications is due to
the growing number of industry members submitting applications and to
product innovations and expansions in product lines by industry
members. In addition, because industry members seek to bring products
to market quickly, they may submit label approval applications early in
their product development process, before the product and its marketing
have been finalized. These industry members may submit several
applications for different potential labels to cover the different
possible ways that product may eventually be formulated and marketed
once ready for market.
To implement the FAA Act provision requiring the issuance of COLAs,
TTB regulations provide a process through which a person can submit an
application for approval of a label, along with a copy of the label,
and obtain TTB approval of the label through the
[[Page 60566]]
issuance by TTB of a COLA. The COLA is evidence that a label has been
reviewed for compliance with the TTB regulations and approved for use.
The requirement to obtain a COLA for domestic and imported products is
set forth in subparts E and F of part 4 (for wine), subparts E and F of
part 5 (for distilled spirits), and subparts D and E of part 7 (for
malt beverages). The procedures governing the issuance and revocation
of COLAs are set forth in 27 CFR part 13, Labeling Proceedings (27 CFR
part 13).
The regulations also authorize the issuance of certificates of
exemption for wine and distilled spirits when the applicant establishes
that the wine or distilled spirits product is not to be sold, offered
for sale, or shipped or delivered for shipment, or otherwise introduced
in interstate or foreign commerce. It should be noted that TTB and its
predecessor agencies have never issued regulations requiring
certificates of exemption for malt beverages that will not be sold or
otherwise introduced in interstate or foreign commerce. Furthermore,
the regulations do not require malt beverages that will not be sold or
otherwise introduced in interstate or foreign commerce to be covered by
a certificate of label approval. See TTB Ruling 2013-1. This issue will
be discussed later in this preamble.
1. COLA Streamlining Initiatives
TTB has undertaken several initiatives to streamline the label
approval process. In 2003, TTB implemented COLAs Online, a system that
allows industry members to submit electronic applications for label
approval. Currently, over 90 percent of COLA applications are submitted
and processed electronically. More recently, in 2013, TTB began
electronically processing applications that are received on paper.
On July 5, 2012, TTB published a revised version of TTB Form
5100.31, ``Application for and Certification/Exemption of Label/Bottle
Approval.'' The most significant change was to expand the list of items
that may be changed on an approved alcohol beverage label without
resubmission of the label for TTB approval. This new policy, which is
reflected on the form, reduces the number of label applications that
industry members would otherwise send to TTB. As a result, label
applications were reduced by 8 percent. In 2014 TTB expanded the list
of changes that may be made to approved labels without requiring those
labels to be resubmitted to TTB for review--this expanded list has been
incorporated into the form (see TTB Industry Circular 2014-02 and TTB F
5100.31).
TTB has also been working on additional initiatives to streamline
label review. These include making processing improvements designed to
speed up review turnaround times; updating labeling guidance on the TTB
website (https://www.ttb.gov) to help industry members comply with its
labeling requirements; and researching industry needs and studying
other Federal agencies' best practices so that TTB can continue to
improve its label review process in the future.
D. Modernization of the Alcohol Beverage Labeling and Advertising
Regulations
As part of the Department of the Treasury's ``Plan for
Retrospective Analysis of Existing Rules,'' TTB has been reviewing its
existing labeling and advertising of wine, distilled spirits, and malt
beverages regulations. TTB proposes to amend these regulations to
improve their clarity and readability, to improve compliance, and to
ease burdens on the regulated industry. The amended regulations will
take into account modern business practices and contemporary consumer
understanding in order to modernize the regulations.
In this proposed rule, TTB intends to clarify, update, and
consolidate labeling requirements and, where possible, to set forth
objective standards for meeting those requirements. This effort also
will help TTB use its limited resources more efficiently, facilitate
the development and use of more efficient systems for processing
applications, and reduce the processing time for label applications.
In preparation for this rulemaking, TTB reviewed its regulations,
public guidance, and labeling review practices to identify policies and
interpretations that are relevant but have not yet been codified in the
regulations, as well as those that are no longer relevant and can be
eliminated. In all, TTB reviewed 90 rulings and industry circulars, and
incorporated all or parts of approximately 38 of them into the proposed
regulations. When these proposed regulations become final, those
rulings and industry circulars, or parts thereof, will be superseded by
the regulations. TTB also determined that eight rulings and industry
circulars were no longer relevant and thus could be superseded without
being incorporated.
As a result, the proposed regulations, when finalized, will provide
industry with a more comprehensive source for the general rules
applicable to alcohol beverage labeling. In addition, in updating these
regulations, TTB sought to make the rules applicable to all three
commodities as consistent as possible, recognizing that some
differences in treatment are required by statute and others by the
nature of the commodity or industry practice.
E. Plain Language Principles
On June 1, 1998, the President issued a memorandum that requires
Federal agencies to write regulations in ``plain language.'' These
proposed regulations have been written in the plain language style. The
proposed regulations:
Use the active voice in the regulations, whenever
possible;
Use shorter sentences, paragraphs, and sections;
Minimize the use of jargon and unnecessary technical
terms;
Clarify and simplify the regulatory requirements;
Create consistency in the treatment of the three
commodities, as appropriate;
Break large sections into smaller, more focused sections
for better readability; and
Make it easier for readers to find information through the
tables of contents.
F. Scope of This Rulemaking
As mentioned above, TTB is undertaking this modernization effort to
improve understanding of the regulatory requirements and to make
compliance easier and less burdensome. In addition, the proposed rule
will incorporate changes in labeling standards that have come about
through statutory changes (such as the change to the labeling of wines
with semi-generic designations) and international agreements (through
the incorporation of various designations of geographic significance).
In the case of wine, we are proposing greater flexibility in the use of
certain appellations of origin and multiple varietal designations, both
to comply with international commitments and to provide more
information to consumers through greater flexibility in the use of this
optional information on labels. For all products, TTB is proposing
greater flexibility with regard to the placement of mandatory
information on labels.
TTB is also reflecting contemporary case law with regard to the
protection of commercial speech under the First Amendment. In some
cases, this means codifying longstanding interpretations, such as our
policy that the prohibition on disparaging statements on labels and in
advertisements does not prohibit truthful and accurate comparisons with
a competitor's product.
[[Page 60567]]
With regard to malt beverages and wine, TTB is updating the alcohol
content regulations for the first time since the Supreme Court's
decision in Rubin v. Coors Brewing Company, 514 U.S. 476 (1995), which
struck down on First Amendment grounds the FAA Act's ban on alcohol
content statements on malt beverage labels. In 1993, after the district
court decision in the Coors case but prior to the Supreme Court
decision, TTB's predecessor agency, the Bureau of Alcohol, Tobacco and
Firearms (ATF), issued interim regulations allowing optional statements
of alcohol content on malt beverage labels. See T.D ATF-339 (58 FR
21228, April 19, 1993). TTB is now proposing to finalize updated
alcohol content regulations, including, in this document, amendments
that would modernize the regulations on strength claims to remove
outdated language, such as the ban on use of the term ``pre-war
strength,'' which refers to the period before World War I.
This proposed rule would also incorporate certain proposals
previously aired for comment by TTB in notices or advance notices of
proposed rulemaking, including proposals on the use of ``estate grown''
on wine labels, and the use of aggregate packaging to satisfy standards
of fill for distilled spirits and wine containers.
TTB is also proposing several amendments that would protect
consumers by providing certain more specific labeling and packaging
rules. For example, existing regulations require mandatory information
to appear on opaque packaging of distilled spirits and wine, because
consumers are unable to see the label on the container without removing
the container from the packaging. TTB is proposing to extend this
requirement to malt beverages.
TTB is also proposing to require mandatory information to appear on
any ``closed packaging'' of wine, distilled spirits, or malt beverages.
The proposed amendments define closed packaging to include packaging
where the mandatory information on the label of the container is not
visible to the consumer because the container cannot be readily removed
from the packaging. Packaging is considered closed if the consumer must
open, rip, untie, unzip, or otherwise manipulate the package to remove
the container in order to view any of the mandatory information.
TTB has noted that today's industry increasingly uses terms that
apply to one commodity on labels of a different commodity. For example,
TTB sees many wine and malt beverage labels that include distilled
spirits terms or malt beverage labels that include wine terms. TTB is
proposing a specific regulatory provision to prohibit the use of such
terms when they might mislead consumers as to the identity of the
product, while allowing the non-misleading use of certain terms (such
as references to aging malt beverages in barrels previously used for
the storage of distilled spirits or wine).
TTB solicits comments on whether these proposals will protect
consumers and whether they will require significant labeling changes by
industry members. TTB proposes to give all affected parties three years
to come into compliance with the proposed regulations, should they be
finalized. This will allow industry members to coordinate new labeling
requirements with scheduled labeling changes, and to use up existing
stocks of labeling and packaging.
There are a number of ongoing rulemaking initiatives related to
labeling and advertising of alcohol beverages that will be handled
separately from this proposed rule due to their complexity. For
example, this document does not deal with ``Serving Facts'' statements,
an issue that was the subject of a 2007 notice of proposed rulemaking
(see Notice No. 73, 72 FR 41860, July 31, 2007) and TTB Ruling 2013-2.
Nor does TTB address its current policy requiring statements of average
analysis on labels that include nutrient content claims. Industry
members should continue to rely on TTB's published rulings and other
guidance documents on these issues. TTB's policy on gluten content
statements is still an interim one; therefore, that issue is not
addressed in the proposed rule (see TTB Ruling 2014-2). Substantive
changes to allergen labeling requirements are not addressed in this
document. Standards of fill requirements are not addressed in this
document but TTB plans to address them in a separate rulemaking
document.
In addition, this document is not intended to specifically address
proposals that were submitted to the Department of the Treasury in
response to a Request for Information (RFI) published in the Federal
Register (82 FR 27212) on June 14, 2017. The RFI invited members of the
public to submit views and recommendations for Treasury Department
regulations that can be eliminated, modified, or streamlined, in order
to reduce burdens. The comment period for the RFI closed on October 31,
2017.
Eight comments on the FAA Act labeling regulations, including 28
specific recommendations, were submitted in response to the RFI. For
ease of reference, TTB will post the labeling comments in the docket
for this rulemaking. We will consider all of the labeling
recommendations submitted in response to the RFI either as comments to
this proposed rule or as suggestions for separate agency action, as
appropriate. We note that our preliminary review of the comments
submitted in response to the RFI indicates that many of the topics that
were included in those recommendations are addressed in this proposed
rule, although our proposals may in some cases differ from those set
forth in the comments.
Finally, in this notice TTB proposes to consolidate its alcohol
beverage advertising regulations in a new part, 27 CFR part 14,
Advertising of Wine, Distilled Spirits, and Malt Beverages. The
proposed part 14 contains only those updates needed to conform certain
regulated practices to the updates being proposed for the labeling
provisions. Additional updates to the regulations on advertising to
address contemporary issues, such as social media, are not proposed in
this rulemaking but may be proposed in future rulemaking initiatives.
Because this proposed rule deals with such a broad scope of
modernization changes, TTB will deal with these more specific issues in
separate rulemaking documents.
II. Proposed Revisions
A. General Reorganization of the Parts
TTB is proposing to reorganize the contents of 27 CFR parts 4, 5,
and 7, and to add a new 27 CFR part 14. As proposed, 27 CFR parts 4, 5,
and 7 continue to contain the labeling regulations for wine, distilled
spirits, and malt beverages, respectively, while the current subparts
of parts 4, 5, and 7 that relate to advertising are removed from those
parts and consolidated into a new part 14. As part of TTB's review of
the labeling regulations, TTB reviewed the various sections and
subparts and determined that much of their basic structure needs to be
amended. Under the current structure, information is not always located
where a reader would expect to find it. As a result of amendments to
the regulations over the years, certain provisions that would logically
be grouped together are instead spread throughout a given part.
Accordingly, TTB is proposing to group topics together in a more
logical order, with related provisions, where appropriate, appearing in
a single subpart.
The new subparts are restructured in a progressive order starting
with general provisions, such as defining the terms
[[Page 60568]]
used in that part and specifying who is subject to the regulations in
that part. The ``general provisions'' subpart is followed by subparts
setting forth the circumstances under which a certificate of label
approval (COLA) is required, how to obtain a COLA, and what information
is required on the labels and where it must appear.
Proposed parts 4, 5, and 7 of 27 CFR are each structured similarly.
Furthermore, within each part, regulatory provisions that appear in
more than one part will have the same number within the part. For
example, the regulations that set out the mandatory information for
wine, distilled spirits, and malt beverage labels, respectively, are
found in proposed Sec. Sec. 4.63, 5.63, and 7.63. TTB believes that
this revised numbering of the regulations will make it easier for the
public to find relevant regulations and to compare regulations in the
three parts.
The table below shows the organization of the proposed subparts in
parts 4, 5, and 7.
Proposed Subparts: 27 CFR Parts 4, 5, and 7
----------------------------------------------------------------------------------------------------------------
Part 4 (Wine) Part 5 (Distilled spirits) Part 7 (Malt beverages)
----------------------------------------------------------------------------------------------------------------
Subpart A--General Provisions Subpart A--General Provisions Subpart A--General Provisions
Subpart B--Certificates of Label Subpart B--Certificates of Label Subpart B--Certificates of Label
Approval and Certificates of Approval and Certificates of Approval
Exemption from Label Approval Exemption from Label Approval
Subpart C--Alteration of Labels, Subpart C--Alteration of Labels, Subpart C--Alteration of Labels,
Relabeling, and Adding Information Relabeling, and Adding Information Relabeling, and Adding Information
to Containers to Containers to Containers
Subpart D--Label Standards Subpart D--Label Standards Subpart D--Label Standards
Subpart E--Mandatory Label Subpart E--Mandatory Label Subpart E--Mandatory Label
Information Information Information
Subpart F--Restricted Labeling Subpart F--Restricted Labeling Subpart F--Restricted Labeling
Statements Statements Statements
Subpart G--Prohibited Labeling Subpart G--Prohibited Labeling Subpart G--Prohibited Labeling
Practices Practices Practices
Subpart H--Labeling Practices That Subpart H-- Labeling Practices That Subpart H-- Labeling Practices That
are Prohibited if They are are Prohibited if They are are Prohibited if They are
Misleading Misleading Misleading
Subpart I--Standards of Identity for Subpart I--Standards of Identity for Subpart I--Classes and Types of Malt
Wine Distilled Spirits Beverages
Subpart J--American Grape Variety Subpart J--Formulas Subpart J--Reserved
Names
Subpart K--Standards of Fill and Subpart K--Standards for Fill and Subpart K--Reserved
Authorized Container Sizes Authorized Container Sizes
Subpart L--Recordkeeping and Subpart L--Recordkeeping and Subpart L--Recordkeeping and
Substantiation Requirements Substantiation Requirements Substantiation Requirements
Subpart M--Penalties and Compromise Subpart M--Penalties and Compromise Subpart M--Penalties and Compromise
of Liability of Liability of Liability
Subpart N--Paperwork Reduction Act Subpart N--Paperwork Reduction Act Subpart N--Paperwork Reduction Act
----------------------------------------------------------------------------------------------------------------
B. Proposed Changes That Apply to Parts 4, 5 and 7
As discussed above, in proposing to update its labeling
regulations, one of TTB's purposes has been to apply the same rules to
wine, distilled spirits, and malt beverages, to the extent possible, as
long as different treatment is not required by statute or by the nature
of the commodity. Therefore, a number of the proposed changes to the
regulations apply to parts 4, 5 and 7. These proposed changes are
described below, in the general order in which they appear in the
proposed regulations. See the discussion in sections II C, II D, and II
E of this document for provisions specific to wine, distilled spirits,
and malt beverages, respectively.
1. Subpart A--General Provisions
a. Definitions. Proposed subpart A includes several sections of
general applicability. These sections include definitions of terms used
throughout these regulations, as well as sections cross-referencing
other regulations that relate to the production and labeling of the
alcohol beverage products at issue.
With regard to definitions, TTB is proposing to amend the sections
in parts 4, 5, and 7 that define the terms used in those parts
(proposed Sec. Sec. 4.1, 5.1, and 7.1), to add definitions of the
following terms: ``brand name,'' ``certificate holder,'' ``certificate
of exemption from label approval,'' ``certificate of label approval
(COLA),'' ``distinctive or fanciful name,'' and ``net contents.''
The proposed rule defines the term ``brand name'' as the name under
which a product or product line is sold. This definition is consistent
with the current understanding of the term and with guidance provided
in the Beverage Alcohol Manuals (BAMs), TTB P 5120.3, 5110.7, and
5130.3, for wine, distilled spirits, and malt beverages, respectively,
which are guidance documents that provide the public with
interpretations of some of TTB's labeling regulations.
The term ``certificate holder'' is used in the proposed text of
parts 4, 5, and 7 to refer to industry members that have obtained a
COLA, certificate of exemption from label approval, or distinctive
liquor bottle approval from TTB. The proposed rule sets forth a
definition of ``certificate holder'' for parts 4, 5, and 7 that is
largely consistent with that definition of that term in part 13 of the
TTB regulations (27 CFR part 13), which governs the issuance, denial,
and revocation of COLAs. The definition of the term ``certificate of
exemption from label approval'' is consistent with the definition
already in part 13 of the TTB regulations.
The definition of the term ``Certificate of label approval (COLA)''
is derived from the definition set forth in part 13 of the TTB
regulations, but includes some proposed revisions. The proposed
definition is ``A certificate issued on TTB Form 5100.31 that
authorizes the bottling of wine, distilled spirits, and malt beverages,
or the removal of bottled wine, distilled spirits, and malt beverages
from customs custody for introduction into commerce, as long as the
product bears labels identical to the labels appearing on the face of
the certificate, or labels with changes authorized by TTB on the
certificate or otherwise.'' The current definition in part 13
recognizes that the COLA form itself authorizes certain allowable
revisions to a label that may be made by the certificate holder without
having to obtain TTB approval. The revisions made in the proposed
definition specifically recognize that TTB may
[[Page 60569]]
authorize revisions in other ways, such as by issuing guidance on the
TTB website.
The term ``distinctive or fanciful name'' currently refers to a
term that must be used on a distilled spirits label, together with a
truthful and adequate statement of composition, when a distilled
spirits product does not fall within a class and type that is specified
in the regulations or on a malt beverage label when a malt beverage is
not known to the trade under a particular designation. A distinctive or
fanciful name is optional on other distilled spirits or malt beverage
products. A distinctive or fanciful name is also optional for a wine,
whether or not it bears a statement of composition.
The proposed rule defines the term ``distinctive or fanciful
name,'' which is used in proposed parts 4, 5, and 7. The term
``distinctive or fanciful name'' is defined as a descriptive name or
phrase chosen to identify a product on the label. It does not include a
brand name, class or type designation, statement of composition, or, in
part 7 only, a designation known to the trade or consumers.
The proposed rule adds a definition of ``net contents'' in parts 4,
5, and 7. The ``net contents'' is the amount, by volume, of wine,
distilled spirits, or malt beverages, respectively, held in a
container. The net contents statement is mandatory labeling
information.
The proposed regulations also include amendments to several
definitions that appear in the current regulations. These changes
reflect current TTB policy and are clarifying in nature.
The definition of the term ``container'' is amended in parts 4 and
7 and is added to part 5 to replace the definition of the term
``bottle.'' The proposed rule defines ``container'' in parts 4 and 7 as
any can, bottle, box with an internal bladder, cask, keg, barrel, or
other closed receptacle, in any size or material, that is for use in
the sale of wine or malt beverages, respectively, at retail. Aside from
editorial changes, this differs from the current definitions in that it
specifically incorporates a box with an internal bladder, sometimes
referred to as a ``bag in a box.''
The term ``container'' will replace the term ``bottle'' in the part
5 regulations for distilled spirits and is defined as any can, bottle,
box used to protect an internal bladder, cask, keg, or other closed
receptacle, in any size or material, that is for use in the sale of
distilled spirits at retail. TTB believes that the revised definition
will make it clearer that containers of distilled spirits may be made
in a variety of materials and sizes, and that the term is not
restricted to traditional glass bottles. Because of the restrictions on
the size of distilled spirits containers, the proposed definition does
not include references to barrels. Furthermore, because there are
prescribed standards of fill for both wine and distilled spirits, the
definitions in parts 4 and 5 include a cross reference to those
standard of fill regulations, to clarify that containers must be in
certain sizes.
The proposed rule amends the definition of the term ``interstate or
foreign commerce'' in parts 4, 5 and 7 to remove the provision that
included commerce within any Territory as being interstate or foreign
commerce. The FAA Act extends to the 50 States, the District of
Columbia, and Puerto Rico. As set forth in the definitions in the FAA
Act, the term ``State'' included a Territory and the District of
Columbia, and the term ``Territory'' meant Alaska, Hawaii, and Puerto
Rico. See 27 U.S.C. 211(a)(1). Since the enactment of the FAA Act in
1935, Alaska and Hawaii have become states. Furthermore, Puerto Rico is
now a Commonwealth, which has affected the status of transactions that
occur solely within Puerto Rico under the FAA Act. See ATF Ruling 85-5,
which addressed this issue in the context of the trade practice
regulations and relied, in part, on Cordova & Simonpietri Insurance
Agency, Inc. v. Chase Manhattan Bank, 649 F. 2d 36 (1st Cir. 1981).
Therefore, the proposed rule amends the definition of ``interstate or
foreign commerce'' to remove the language indicating that commerce
within Puerto Rico is interstate commerce.
The proposed rule amends the definition of the term ``person'' in
all three parts by adding ``limited liability company'' to specifically
reflect TTB's current position that limited liability companies fall
under the definition of a ``person.''
The proposed rule removes the term ``advertisement'' from the
definition sections in parts 4, 5, and 7, because these parts will no
longer provide substantive rules regarding advertisements. Instead, the
proposed rule moves the regulations regarding advertisements to a new
proposed part 14.
Finally, in this subsection and throughout parts 4 and 5, the
proposed rule updates references to the IRC. The existing regulations
include certain references to terms (such as ``rectifier'' or ``bonded
wine storeroom'') from previous versions of the IRC. These terms are no
longer used in the current tax laws. The proposed rule updates these
references to include terms that are currently used in the IRC.
b. General requirements and prohibitions under the FAA Act.
Proposed Sec. Sec. 4.3, 5.3, and 7.3 set out the general requirements
and prohibitions under the FAA Act. Proposed Sec. Sec. 4.3(a), 5.3(a),
and 7.3(a) summarize the general requirements regarding COLAs, as set
forth in greater detail in subpart B. Proposed Sec. Sec. 4.3(b),
5.3(b), and 7.3(b) similarly summarize the prohibition against
alteration, mutilation, destruction, obliteration, or removal of
labels, as set forth in greater detail in subpart C. Proposed
Sec. Sec. 4.3(c) and (d), 5.3(c) and (d), and 7.3(c) and (d) set out
the general labeling requirements of this part, as set forth in greater
detail in subparts D, E, F, G, H, and I. Finally, proposed Sec. Sec.
4.3(e) and 5.3(e) summarize the general bottling and standards of fill
requirements, which are set out in subpart K for wine and distilled
spirits. (Malt beverages are not subject to standard of fill
requirements.)
Proposed Sec. Sec. 4.3(d), 5.3(d), and 7.3(d) also set out for the
first time in the regulations TTB's position that in order to be
labeled in accordance with the regulations in these parts, a container
may not contain an adulterated alcohol beverage within the meaning of
the Federal Food, Drug, and Cosmetic Act. It is TTB's longstanding
position that adulterated distilled spirits, wines, and malt beverages
are mislabeled within the meaning of the FAA Act, even if the bottler
or importer of the product in question has obtained a COLA or an
approved formula. See Industry Circular 2010-8, dated November 23,
2010. No adulterated distilled spirits, wines, or malt beverages can
satisfy the labeling requirements of the FAA Act. Subject to the
jurisdictional requirements of the FAA Act, mislabeled distilled
spirits, wines, and malt beverages, including adulterated products, may
not be sold or shipped, delivered for sale or shipment, or otherwise
introduced or received in interstate or foreign commerce, or removed
from customs custody for consumption, by a producer, importer, or
wholesaler, or other industry member subject to 27 U.S.C. 205(e).
c. Exports in bond. The current regulations exempting products for
export from the labeling regulations under the FAA Act are somewhat
inconsistent. In existing Sec. Sec. 4.80 and 7.60, wine and malt
beverages ``exported in bond'' are exempted from the requirements of
those respective parts. However, current Sec. 5.1, which is entitled
``General,'' provides that part 5 ``does not apply to distilled spirits
for export.''
TTB believes that the exemptions in all three parts should be
consistent and should be restricted to exportations in
[[Page 60570]]
bond. In general, the bottler is required to obtain a COLA prior to
removal of the product from the premises. Products that are removed
subject to tax may subsequently be exported or may end up in the
domestic market, and therefore are not exempted from the labeling
requirements of the FAA Act.
Accordingly, proposed Sec. Sec. 4.8, 5.8, and 7.8 provide that
products exported in bond directly from a bonded wine premises,
distilled spirits plant, or brewery, respectively, or from customs
custody, are not subject to the regulations under these parts. The
amendment clarifies that exportation in bond does not include
exportation after wine, distilled spirits, or malt beverages have been
removed for consumption or sale in the United States, with appropriate
tax determination or payment. This is only a clarifying change in parts
4 and 7. With regard to part 5, TTB seeks comments on whether this
proposed change will impact existing practices, and if so, what the
impact will be.
d. Compliance with Federal and State requirements. For the first
time, parts 4, 5, and 7, will make clear that compliance with the
requirements of the respective parts relating to the labeling and
bottling of wine, distilled spirits and malt beverages does not relieve
industry members from responsibility for complying with other
applicable Federal and State requirements (see proposed Sec. Sec. 4.9,
5.9, and 7.9).
These sections also provide that it remains the responsibility of
the industry member to ensure that any ingredient used in the
production of alcohol beverages complies fully with all applicable Food
and Drug Administration (FDA) regulations pertaining to the safety of
food ingredients and additives and that TTB may at any time request
documentation to establish such compliance. In addition, these three
sections provide that it remains the responsibility of the industry
member to ensure that containers are made of suitable materials that
comply with all applicable FDA health and safety regulations for the
packaging of alcohol beverages for consumption and that TTB may at any
time request documentation to establish such compliance.
It is TTB's longstanding position that its review of labels and
formulas does not relieve the industry member from its responsibility
to ensure compliance with applicable FDA regulations. See, e.g.,
Industry Circular 2010-8, dated November 23, 2010, entitled ``Alcohol
Beverages Containing Added Caffeine,'' in which TTB reminded industry
members as follows:
* * * each producer and importer of alcohol beverages is responsible
for ensuring that the ingredients in its products comply with the
laws and regulations that FDA administers. TTB's approval of a COLA
or formula does not imply or otherwise constitute a determination
that the product complies with the [Federal Food, Drug, and Cosmetic
Act], including a determination as to whether the product is
adulterated because it contains an unapproved food additive.
See also Industry Circular 62-33. The instructions on the forms for
formula approval repeat this message. Now, TTB is proposing to codify
this position in the regulations.
e. Cross references to other regulations. Proposed Sec. Sec. 4.10,
5.10, and 7.10 are derived from current Sec. Sec. 4.5, 5.2, and 7.4
and include an expanded list of regulations implemented by other
Federal agencies of which industry members should be aware. While the
list does not purport to be comprehensive, TTB believes it will be
helpful to industry members.
2. Subpart B--Certificates of Label Approval (for Wine, Distilled
Spirits and Malt Beverages) and Certificates of Exemption From Label
Approval (for Wine and Distilled Spirits)
a. Certificates of label approval (COLAs) and certificates of
exemption from label approval. The regulations implementing the
statutory requirement for (COLAs) (for wine, distilled spirits and malt
beverages) and certificates of exemption (for wine and distilled
spirits) are reorganized for clarity. The proposed regulations also set
forth, for the first time, some of the things that a COLA does not do.
Specifically, the proposed regulations provide that, among other
things, a COLA does not confer trademark protection; relieve the
certificate holder from its responsibility to ensure that all
ingredients used in the production of wine, distilled spirits, or malt
beverages comply with applicable requirements of the FDA with regard to
ingredient safety; or relieve the certificate holder from liability for
violations of the FAA Act, the ABLA, the IRC, or related regulations
and rulings.
The proposed revisions reflect the longstanding policy of TTB and
its predecessor agencies. Furthermore, the COLA form (TTB Form 5100.31,
Application for and Certification/Exemption of Label/Bottle Approval),
currently specifically provides that the issuance of a COLA does not
confer trademark protection and does not relieve the applicant from
liability for violations of the FAA Act, the ABLA, the IRC, or related
regulations and rulings. TTB believes that these revisions will clarify
this position for the public and industry members.
b. Certificates of exemption. Proposed Sec. Sec. 4.23 and 5.23
incorporate current regulatory requirements with regard to the issuance
of certificates of exemption to bottlers of wine and distilled spirits.
Consistent with the current regulations, the proposed rule provides
that the bottler may obtain a certificate of exemption upon
establishing, to the satisfaction of the appropriate TTB officer, that
the wine or spirits to be bottled will be offered for sale only within
the State in which bottled, and that they will not be sold, offered for
sale, shipped or delivered for shipment, or otherwise introduced, in
interstate or foreign commerce.
Consistent with the instructions for Item 18 that currently appear
on the TTB Form 5100.31, the proposed regulations provide that, as a
condition for receiving exemption from label approval, the label
covered by a certificate of exemption must include the statement, ``For
sale in [name of State] only.'' It should be noted that it is TTB's
current practice to issue certificates of exemption conditioned on the
applicant's agreement to add this statement to the container. Under the
proposed regulations, TTB will require applicants to include this
statement on a label submitted with the application for a certificate
of exemption.
c. COLAs for Imported Wine, Distilled Spirits, and Malt Beverages.
Consistent with current regulations, proposed Sec. Sec. 4.24, 5.24,
and 7.24 provide that wine, distilled spirits, and malt beverages,
imported in containers, are not eligible for release from customs
custody for consumption unless the person removing the wine, distilled
spirits, or malt beverages has obtained and is in possession of a COLA.
The regulations, as amended by the final rule facilitating the use of
the International Trade Data System (ITDS) (T.D. TTB-145, 81 FR 94186,
December 22, 2016), require importers who file electronically to file
with CBP the identification number assigned to the approved COLA. If
the importer is not filing electronically, the importer must provide a
copy of the COLA to CBP at the time of entry.
d. Administrative rules. In proposed subpart B of parts 4, 5, and
7, several sections are grouped under the heading of ``Administrative
Rules.'' These sections set forth requirements for presenting COLAs to
government officials; submitting formulas, samples, and other
documentation related to obtaining or using COLAs; and applying for and
obtaining permission to use personalized labels.
[[Page 60571]]
The requirement that a certificate holder must present a COLA upon
request by any duly authorized representative of the United States
Government (at proposed Sec. Sec. 4.27, 5.27, and 7.27) reflects
current provisions (at current Sec. Sec. 4.51, 5.55(c), and 7.42) but
adds the provision that the COLA may be the original or a copy
(including an electronic copy).
i. Formula requirements. TTB currently has specific formula
requirements for certain domestic products. These are found in parts 5
and 19 for distilled spirits, in part 24 for wine, and in part 25 for
beer. However, TTB often finds it necessary to obtain more specific
information about a product that is not otherwise subject to the
formula requirements in connection with the COLA review process.
For many imported alcohol beverage products, TTB requires a product
evaluation to determine whether a proposed label identifies the product
in an adequate and non-misleading way. Pre-COLA product evaluation
entails a review of a product's ingredients and formulation and also
may include a laboratory analysis of the product. Laboratory analysis
involves a chemical analysis of a product. Such pre-COLA product
evaluations ensure that:
No alcohol beverage contains a prohibited ingredient.
Ingredients are used within limitations or restrictions
prescribed by TTB or another Federal agency, as applicable.
Appropriate tax and product classifications are made.
Alcohol beverages labeled without a sulfite declaration
contain less than 10 parts per million (ppm) of sulfur dioxide.
The type of pre-COLA product evaluation required for a particular
product depends on that product's formulation and origin. Industry
Circular 2007-4, ``Pre-COLA Product Evaluation,'' dated September 11,
2007, includes a list of the imported products for which TTB currently
requires formulas and other pre-COLA analyses.
The Industry Circular also announced that TTB had developed a new
form that may be submitted in lieu of the various forms and formats
otherwise prescribed in the regulations for specific products. TTB
developed the form, TTB F 5100.51, ``Formula and Process for Domestic
and Imported Alcohol Beverages,'' to simplify the formula submission
process and to provide a more consistent means of information
collection across all commodity areas for both imported and domestic
products. The Circular stated that TTB intended to pursue a regulatory
change that will make use of this form mandatory, entirely replacing
the various industry-specific forms and formats currently set forth in
the TTB regulations. Until such a change occurs, this form may be used
voluntarily as an alternate procedure. A producer or importer who
wishes to use TTB F 5100.51 may submit that form in lieu of the forms
prescribed in the regulations without first requesting approval from
TTB to do so.
Current regulations in Sec. Sec. 4.38(h), 5.33(g), and 7.31(d)
authorize TTB to request more information about the contents of a wine,
distilled spirits product or malt beverage, but the language in part 7
is different from the language in parts 4 and 5. Sections 4.38(h) and
5.33(g) provide that, upon request of the appropriate TTB officer, a
bottler or importer must submit a full and accurate statement of the
contents of any container to which labels are to be or have been
affixed. The regulations in Sec. 7.31(d) state that the appropriate
TTB officer may require an importer to submit a formula for a malt
beverage, or a sample of any malt beverage or ingredients used in
producing a malt beverage, prior to or in conjunction with the filing
of an application for a COLA.
TTB is proposing to standardize the regulatory language in parts 4,
5 and 7 on this issue. Accordingly, proposed Sec. Sec. 4.28, 5.28, and
7.28 provide that the appropriate TTB officer may require a bottler or
importer to submit a formula, the results of laboratory testing, and
samples of the product or ingredients used in the final product, prior
to or in conjunction with the review of an application for label
approval. The proposed regulations also provide that TTB may request
such information after the issuance of a COLA, or in connection with
any product that is required to be covered by a COLA. The proposed
regulations also provide that, upon request of the appropriate TTB
officer, a bottler or importer must submit a full and accurate
statement of the contents of any container to which labels are to be or
have been affixed, as well as any other documentation on any issue
pertaining to whether the wine, distilled spirits, or malt beverage is
labeled in accordance with the TTB regulations. These amendments
reflect current TTB policy.
As noted above, current TTB regulations and industry practice
involve the submission of alcohol beverage formulas in varying forms
and formats depending on the type of alcohol beverage and whether the
product is domestically produced or imported. TTB believes that this
multiplicity of procedures is unnecessarily complicated and burdensome
for both the regulated industries and TTB. Accordingly, we propose in
this document to amend the TTB regulations in parts 4, 5, and 7 to
provide that a formula may be filed electronically by using Formulas
Online, or it may be submitted on paper on TTB Form 5100.51. TTB
anticipates proposing similar revisions to the IRC regulations in the
near future. TTB notes that many industry members now use Formulas
Online to submit formulas, and encourages all industry members to
consider the advantages of online filing.
ii. Personalized labels. The proposed regulations also set forth,
for the first time, the process for applicants seeking label approval
to receive permission from TTB to make certain changes in order to
personalize labels without having to resubmit the labels for TTB
approval (see Sec. Sec. 4.29, 5.29, and 7.29). Personalized labels may
contain a personal message, picture, or other artwork that is specific
to the consumer who is purchasing the product. For example, a producer
may offer custom labels to individuals or businesses that commemorate
an event such as a wedding or grand opening.
Consistent with current policy, as set forth in TTB G 2011-5 and
TTB G 2010-1, the proposed regulations provide that label applicants
who intend to offer personalized labels must submit a template for the
personalized label with their application for label approval, and note
on the application a description of the specific personalized
information that may change. If the application complies with the
regulations, TTB will issue a COLA with a qualification that allows the
personalization of labels. The qualification will allow the certificate
holder to add or change items on the personalized label such as
salutations, names, graphics, artwork, congratulatory dates and names,
or event dates, without applying for a new COLA. All of these items on
personalized labels must comply with the regulations.
The proposed rule provides that certain changes are not permitted
on personalized labels. These include the addition of any information
that discusses either the alcohol beverage or the characteristics of
the alcohol beverage, as well as information that is inconsistent with
or in violation of the provisions of the TTB regulations or any other
applicable law or regulation.
3. Subpart C--Alteration of Labels, Relabeling, and Adding Information
to Containers
As previously noted, the COLA requirements of the FAA Act are
[[Page 60572]]
intended to prevent the sale or shipment or other introduction in
interstate or foreign commerce of distilled spirits, wine, or malt
beverages that are not bottled, packaged, or labeled in compliance with
the regulations. To ensure that products with proper labels are not
altered once such products have been removed from bond, section 105(e)
of the FAA Act (27 U.S.C. 205(e)) further provides:
It shall be unlawful for any person to alter, mutilate, destroy,
obliterate, or remove any mark, brand, or label upon distilled
spirits, wine, or malt beverages held for sale in interstate or
foreign commerce or after shipment therein, except as authorized by
Federal law or except pursuant to regulations of the Secretary of
the Treasury authorizing relabeling for purposes of compliance with
the requirements of this subsection or of State law.
Regulations that implement these provisions of the FAA Act, as they
relate to wine, distilled spirits, and malt beverages, are set forth in
parts 4, 5, and 7, respectively. Current Sec. Sec. 4.30 and 7.20
provide that someone wanting to relabel must receive prior written
permission from the appropriate TTB officer. Current Sec. 5.31 does
not require prior written approval for the relabeling of distilled
spirits, as long as such relabeling is done in accordance with an
approved COLA.
In proposed subpart C of parts 4, 5, and 7, TTB proposes conforming
changes to the regulations that implement this statutory prohibition.
This subpart also sets forth the situations in which a person must
apply for and obtain written approval prior to relabeling.
Proposed Sec. Sec. 4.41(a), 5.41(a), and 7.41(a) set forth the
statutory prohibition under 27 U.S.C. 205(e) on the alteration of
labels. The proposed language provides that the prohibition applies to
any persons, including retailers, holding wine for sale in (or after
shipment in) interstate or foreign commerce.
Proposed Sec. Sec. 4.41(b), 5.41(b), and 7.41(b) provide that for
purposes of the relabeling activities authorized by this subpart, the
term ``relabel'' includes the alteration, mutilation, destruction,
obliteration, or removal of any existing mark, brand, or label on the
container, as well as the addition of a new label (such as a sticker
that adds information about the product or information engraved on the
container) to the container, and the replacement of a label with a new
label bearing identical information.
Proposed Sec. Sec. 4.41(c), 5.41(c), and 7.41(c) contain new
language that provides that authorization to relabel in no way
authorizes the placement of labels on containers that do not accurately
reflect the brand, bottler, identity, or other characteristics of the
product; nor does it relieve the person conducting the relabeling
operations from any obligation to comply with the regulations in this
part and with State or local law, or to obtain permission from the
owner of the brand where otherwise required.
The existing regulations in parts 4 and 7 require persons wishing
to relabel to obtain written permission from TTB, with certain
exceptions, while the regulations in part 5 require persons wishing to
relabel to obtain a COLA from TTB. TTB believes that the regulations in
parts 4, 5 and 7 should be updated to cover all of the situations in
which people need to relabel. The existing regulations in part 5 allow
persons who are eligible to obtain COLAs covering the products, such as
bottlers and importers, to relabel the products even after they have
been removed from bottling premises or customs custody, respectively.
The proposed rule extends this provision to parts 4 and 7. However, the
language in existing parts 4 and 7 allows persons who are not eligible
to obtain COLAs, such as retailers, to obtain written permission from
TTB to relabel products that are in the marketplace when unusual
circumstances exist. The proposed rule extends this provision to part
5.
Accordingly, proposed Sec. Sec. 4.42(a), 5.42(a), and 7.42(a)
provide that proprietors of bonded wine premises, distilled spirits
plant premises, and breweries, respectively, may relabel domestically
bottled products prior to their removal from, and after their return to
bond at, the bottling premises, with labels covered by a COLA, without
obtaining separate permission from TTB for the relabeling activity.
Proposed Sec. Sec. 4.42(b), 5.42(b), and 7.42(b) provide that
proprietors of bonded wine premises, distilled spirits plant premises,
and breweries, respectively, may relabel domestically bottled products
after removal from the bottling premises with labels covered by a COLA,
without obtaining separate permission from TTB for the relabeling
activity. This would, for example, allow a brewer to replace damaged
labels on containers that are being held at a wholesaler's premises, as
long as the labels are covered by a COLA, without obtaining separate
permission from TTB to remove the existing labels and replace them with
either identical or different approved labels.
Similarly, proposed Sec. Sec. 4.42(c) and (d), 5.42(c) and (d),
and 7.42(c) and (d) provide that, under the supervision of U.S. customs
officers, imported wine, distilled spirits, and malt beverages,
respectively, in containers in customs custody may be relabeled without
obtaining separate permission from TTB for the relabeling activity.
Such containers must bear labels covered by a COLA if and when they are
removed from customs custody for consumption.
Proposed Sec. Sec. 4.43, 5.43, and 7.43 cover relabeling
activities that require separate written authorization from TTB. It is
rare that someone other than the original bottler or importer will need
to relabel the product, but these situations sometimes occur. For
example, sometimes unlabeled wine containers are transferred between
bonded wine premises. While the bottler is required to obtain a COLA to
cover these containers prior to bottling, the transferee, who is
labeling the containers, will sometimes want to put additional labels
on the containers. In this case, the transferee must obtain TTB
approval to place the new labels on the products and must be in
possession of the necessary documentation to substantiate any new
claims that will appear on the labels.
Thus, the proposed regulations provide that persons who are not
eligible to obtain a COLA (such as retailers or permittees other than
the bottler) may obtain written authorization for relabeling if the
facts show that the relabeling is for the purpose of compliance with
the requirements of this part or of State law. The written application
must include copies of the original and proposed new labels; the
circumstances of the request, including the reason for relabeling; the
number of containers to be relabeled; the location where the relabeling
will take place; and the name and address of the person who will be
conducting the relabeling operations.
TTB is proposing to add to the malt beverage regulations a
provision that is already found in slightly different forms in parts 4
and 5. This provision authorizes, without any requirement for separate
written permission from TTB, the addition of a label identifying the
wholesaler, retailer, or consumer as long as the label contains no
reference to the characteristics of the product, does not violate the
labeling regulations, and does not obscure any existing labels. The
proposed regulations will standardize this provision for wine,
distilled spirits, and malt beverages (see proposed Sec. Sec. 4.44,
5.44, and 7.44).
TTB believes that the proposed regulations will enable permittees,
brewers, and retailers to relabel alcohol beverage containers when
there is a
[[Page 60573]]
good reason to do so, while still restricting the alteration of labels
for containers that are in the marketplace. We seek comments from the
industry on whether the proposed regulations will protect the integrity
of labels in the marketplace without imposing undue burdens on the
industry.
4. Subpart D--Label Standards
The current provisions governing legibility of labels, type size,
and language requirements are found within one section of parts 4, 5,
and 7 for wine, distilled spirits, and malt beverages, respectively.
See current Sec. Sec. 4.38, 5.33, and 7.28. Proposed subpart D
includes those and other general provisions. These provisions are
predominantly derived from and consistent with requirements set forth
in the current regulations.
TTB is proposing to amend the sections that set forth legibility
requirements for the mandatory information that is required to be
placed on labels (proposed Sec. Sec. 4.52, 5.52, and 7.52). These
sections are derived from current Sec. Sec. 4.38(a), 5.33(a) and (b),
and 7.28(a).
The proposed regulations set forth the requirement that mandatory
information must be ``separate and apart'' from descriptive or
explanatory information, referred to in the proposed rule as
``additional information,'' with a few exceptions. First, brand names
are exempt from this requirement. Second, this provision does not
preclude the addition of brief optional phrases as part of the class
and type designation (such as, ``premium malt beverage''), the name and
address statement (such as, ``Proudly produced and bottled by ABC
Winemaking Co. in Napa, CA, for over 30 years''), or other information
required by the regulations, as long as the additional information does
not detract from the prominence of the mandatory information. Finally,
the mandatory statements related to disclosure of certain specified
ingredients (FD&C Yellow No. 5, cochineal extract or carmine, sulfites,
and aspartame) may not include additional information. It should be
noted that the aspartame statement, like the health warning statement
required by part 16, must be separate and apart from all other
information.
The proposed regulations expand on the requirement that mandatory
information must appear on a ``contrasting background'' by adding
examples of contrasting backgrounds that would satisfy regulatory
requirements. The color of the container and of the alcohol beverage in
the container must be taken into account if the label is transparent.
The text also clarifies that, with one exception (for the required
aspartame statement), mandatory information may appear in lower case
letters, capital letters, or both capital and lower-case letters.
The proposed rule makes changes to current provisions pertaining to
minimum type size requirements. The current regulations setting forth
minimum type size requirements (current Sec. Sec. 4.38(b), 5.33(b)(5),
5.33(b)(6), and 7.28(b)) prescribe specific heights in millimeters for
mandatory information. The height specification is dependent on the
size of the container. Among other things, the proposed regulations
provide that the minimum type size applies to all capital and lowercase
letters.
The proposed rule also makes changes to current provisions
pertaining to maximum type size requirements for the alcohol content
statement for wine and malt beverages. Current Sec. 4.38(b)(3)
provides that the alcohol content statement on containers of 5 liters
or less may not appear in script, type, or printing that is more than 3
millimeters in height. This section further provides that the alcohol
content statement on containers of wine may not be set off with a
border or otherwise accentuated. TTB is retaining the type size
requirement, but removing the prohibition against accentuating the
alcohol content statement. This is in keeping with TTB's current
policy, which allows alcohol content statements to be bolded.
In general, current Sec. 7.28(b)(3)(ii) provides that all portions
of the alcohol content statement for malt beverages must be of the same
size and kind of lettering and of equally conspicuous color, and not
larger than 3 millimeters for containers of 40 fluid ounces or less,
and not larger than 4 millimeters for containers larger than 40 fluid
ounces. TTB is retaining the maximum alcohol content type size
requirements for wine and malt beverages in Sec. Sec. 4.53 and 7.53,
respectively.
TTB is proposing to add sections to all three parts (proposed
Sec. Sec. 4.54, 5.54, and 7.54) to make it explicit that mandatory
information may not be obscured in whole or in part. This requirement
reflects current policy. Although it certainly is a long-standing
component of ``legibility,'' TTB believes that industry members would
benefit from the explicit statement of this policy in the regulatory
text of parts 4, 5, and 7.
TTB seeks comments on whether the proposed changes to the placement
and legibility requirements for mandatory information, which are
intended to provide additional flexibility to industry members,
adequately protect the consumer by ensuring that mandatory information
on containers is readily apparent to consumers.
In proposed Sec. Sec. 4.55, 5.55, and 7.55, TTB is proposing to
amend the language requirements that are currently found in Sec. Sec.
4.38(c), 5.33(c), and 7.28(c), to allow all mandatory information to
appear in Spanish when products are bottled for sale in the
Commonwealth of Puerto Rico. Consistent with the current regulations,
the proposed regulations generally require mandatory information, other
than the brand name, to appear in the English language. The proposed
regulations also allow for additional statements in a foreign language,
including translations of mandatory information that appears elsewhere
in English on the label, to appear on labels and containers, as long as
those statements do not conflict with, or contradict, the requirements
of parts 4, 5, and 7. Finally, these sections provide that the country
of origin may be in a language other than English when allowed by CBP
regulations.
5. Subpart E--Mandatory Label Information
Proposed subpart E in parts 4, 5 and 7 sets forth the information
that is required to appear on alcohol beverage labels (otherwise known
as ``mandatory information''). This subpart also prescribes where and
how mandatory information must appear on such labels.
a. What constitutes a label. TTB is proposing to add regulatory
text to all three parts to specify what TTB will consider to be the
``label'' for purposes of mandatory information. Proposed Sec. Sec.
4.61(a), 5.61(a), and 7.61(a) address different forms that labels take
(for example, paper, plastic or film labels affixed to the container;
information etched, engraved, sandblasted, or otherwise carved into the
surface of the container; and information branded, stenciled, painted,
printed, or otherwise directly applied to the surface of the
container). For purposes of the net contents statement and the name and
address statement only, the term ``label'' includes information blown,
embossed, or molded into the container as part of the process of
manufacturing the container.
Proposed Sec. Sec. 4.61(b), 5.61(b), and 7.61(b) clarify that
placement of information on certain parts of alcohol beverage
containers (such as the bottom of the container, caps, corks, or other
closures [unless authorized to bear mandatory information by the
appropriate TTB officer], and foil or heat shrink capsules) will not
meet the
[[Page 60574]]
requirements for mandatory information that must appear on labels. This
provision is intended to take into account unique types of containers,
such as pudding or gelatin-type cups, where the mandatory information
is sometimes authorized to appear on the top of the container.
Information on these parts of the container are still subject to the
restrictions and prohibitions set forth in proposed subparts F, G and H
of parts 4, 5, and 7.
Proposed Sec. Sec. 4.61(c), 5.61(c), and 7.61(c) further clarify
longstanding policy that any materials that accompany the container to
the consumer but are not firmly affixed to the container, including
booklets, leaflets, and hang tags, are not ``labels'' for purposes of
proposed parts 4, 5, and 7. Such materials are instead subject to the
advertising regulations in proposed new part 14 of the TTB regulations.
This is a clarifying change for parts 4 and 5, consistent with the
intent of T.D. ATF-180 (49 FR 31667, August 8, 1984), which explained
in its preamble that ``[l]abels must be firmly affixed to the
container, hang tags are usually tied or slipped over the neck of the
bottle. Therefore, when other matter accompanies the container and is
not firmly affixed as a label, such matter is advertising material and
must bear the mandatory statements.''
b. Packaging (including cartons, coverings, and cases). Current
regulations in Sec. Sec. 4.38a and 5.41 set out rules for the
placement of information on bottle cartons, booklets, and leaflets.
Briefly, these regulations provide that individual coverings, cartons,
or other containers of the bottle used for sale at retail (that is,
other than a shipping container), as well as any written, printed,
graphic, or other matter accompanying the bottle to the consumer shall
not contain any statement, design, device or graphic, pictorial, or
emblematic representation prohibited by the labeling regulations.
The current regulations also require the placement of mandatory
label information on sealed opaque coverings, cartons, or other
containers used for sale at retail (but not shipping containers).
Coverings, cartons, or other containers of the bottle used for sale at
retail that are designed so that the bottle is easily removable may
display any information that is not in conflict with the label on the
bottle contained therein. However, any brand names or designations must
be displayed in their entirety, with any required modifications and/or
statements of composition.
Thus, the prohibited practices for labeling set forth in existing
Sec. Sec. 4.39(a) and 5.42(a) apply to bottles, labels on bottles, any
individual covering, carton, or other container of such bottles used
for sale at retail, and any written, printed, graphic, or other matter
accompanying such bottles to the consumer. Yet, the advertising
regulations in existing Sec. Sec. 4.61 and 5.62 define the term
``advertisement,'' in pertinent part, as including any written or
verbal statement, illustration, or depiction, whether it appears in ``a
newspaper, magazine, trade booklet, menu, wine card, leaflet, circular,
mailer, book insert, catalog, promotional material, sales pamphlet, or
in any written, printed, graphic, or other matter accompanying the
[container] bottle,'' but excluding ``[a]ny label affixed to any
[container] bottle * * * or any individual covering, carton, or other
[wrapper of such container] [container of the bottle] which constitutes
a part of the labeling'' under the labeling regulations.
The current labeling regulations in part 7 do not include
regulations similar to current Sec. Sec. 4.38a and 5.41. However, as
set forth at current Sec. 7.29(a) and (h), the prohibited practices in
the labeling regulations for malt beverages apply to containers, any
labels on such containers, or any cartons, cases, or individual
coverings of such containers used for sale at retail, as well as to any
written, printed, graphic, or other material accompanying malt beverage
containers to the consumer. The current advertising regulations in part
7, like the advertising regulations in parts 4 and 5, define the term
``advertisement'' (in current Sec. 7.51) to include, in pertinent
part, any written or verbal statement, illustration, or depiction,
whether it appears in ``a newspaper, magazine, trade booklet, menu,
wine card, leaflet, circular, mailer, book insert, catalog, promotional
material, sales pamphlet, or in any written, printed, graphic or other
matter accompanying the container, representations made on cases * * *
or in any other media;'' but excluding any ``label affixed to any
container of malt beverages; or any coverings, cartons, or cases of
containers of malt beverages used for sale at retail which constitute a
part of the labeling'' under the labeling regulations.
TTB believes that the existing regulations create some confusion as
to when a case or hang tag constitutes labeling and when it constitutes
advertising. Accordingly, TTB is proposing identical regulations in
proposed Sec. Sec. 4.62, 5.62, and 7.62 to address packaging. The
proposed regulations provide, consistent with existing regulations in
parts 4, 5 and 7, that packaging may not include any statements or
representations prohibited by the labeling regulations from appearing
on containers or labels. The proposed regulations also provide,
consistent with existing regulations in parts 4 and 5 but as a new
requirement for part 7, that closed packaging, including sealed opaque
coverings, cartons, cases, carriers, or other packaging used for sale
at retail, must include all mandatory information required to appear on
the label.
Furthermore, the proposed regulations provide greater clarity than
the current provisions about when packaging is considered closed.
Proposed Sec. Sec. 4.62, 5.62, and 7.62 provide that packaging is
considered closed if the consumer must open, rip, untie, unzip, or
otherwise manipulate the package to remove the container in order to
view any of the mandatory information. Packaging is not considered
closed if a consumer could view all of the mandatory information on the
container by merely lifting the container up, or if the packaging is
transparent or designed in a way that all of the mandatory information
can easily be read by the consumer without having to open, rip, untie,
unzip, or otherwise manipulate the package. TTB seeks comment on
whether TTB should require mandatory or dispelling information to
appear on open packaging when part of the label is obscured.
TTB solicits comments on whether the proposed rules will require
significant change to labels, containers, or packaging materials. We
also solicit comments on whether the proposed revisions will provide
better information to the consumer and make it easier to find mandatory
information on labels, containers, and packages.
c. Placement rules. Mandatory information includes the brand name,
the class and type designation, alcohol content, net contents, name and
address of the responsible party (such as the producer, bottler, or
importer), and disclosure of certain ingredients and processes. The
current regulations have placement requirements for mandatory
information--some mandatory information must appear on the ``brand
label,'' and other mandatory information may appear on any label. The
regulations in parts 4 and 7 define the brand label as the label
carrying, in the usual distinctive design, the brand name. The
regulations in part 5 define the brand label, in part, 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
[[Page 60575]]
side of the bottle as the principal display panel.
TTB proposes to provide more flexibility in the placement of the
mandatory information for wine, distilled spirits, and malt beverages
by eliminating the concept of a defined ``brand label.'' The specific
proposals for locating mandatory information on labels for each
commodity will be included in the commodity-specific discussions later
in the preamble. Where placement requirements exist, the proposed rule
provides more specific terminology. Instead of requiring mandatory
information to be in ``direct conjunction'' with other mandatory
information, the proposed regulations clarify when such information
must be immediately adjacent to other information, and when it may be
in the same field of vision as other information.
d. Brand name. Proposed Sec. Sec. 4.64, 5.64, and 7.64 set forth
requirements for brand names of wine, distilled spirits, and malt
beverages, respectively. Most of the provisions in these sections are
commodity specific and are therefore discussed individually later in
this document.
However, one proposed change is made in all three parts: TTB is
proposing to remove a provision for the continued use of certain trade
names of foreign origin that had been used for at least five years
immediately preceding August 29, 1935 (the date the FAA Act was
enacted). Although the law still authorizes the use of these names, TTB
believes that there is no need to retain this provision in the
regulations, given that it refers to names that have been used for more
than 85 years.
e. Name and address for domestically bottled products. In the
regulations on the name and address of bottlers and producers of wine,
distilled spirits, and malt beverages, TTB is making editorial changes
to existing requirements.
As previously mentioned, the FAA Act provides that wine, distilled
spirits, and malt beverage labels must contain certain mandatory
information, including the name of the manufacturer, bottler, or
importer of the product. See 27 U.S.C. 205(e)(2). The regulations for
distilled spirits and malt beverage labels currently provide more
flexibility than the regulations for wine labels. Most importantly,
wine labels must show the name of the bottler and the place where
bottled, while bottlers of distilled spirits and malt beverages have
the flexibility to list either the place of bottling, every location at
which the same industry member bottles the product, or, under certain
circumstances, the principal place of business of the industry member
that is bottling the product. Bottlers of distilled spirits or malt
beverages that utilize one of the latter two options must mark the
labels using a coding system that enables the bottler and TTB to trace
the actual place of bottling of each container. This both protects the
revenue and allows for the tracing of containers in the event of an
adulteration issue.
TTB is aware that, with the growing number of craft brewers and
craft distillers in the marketplace, there may be more interest among
consumers as to where malt beverages are brewed and where distilled
spirits are distilled. On the other hand, TTB also wishes to provide
industry members with flexibility in their labeling statements, to
accommodate the growing number of arrangements where products are
produced or bottled pursuant to contractual arrangements. One of the
major reasons for allowing the use of principal places of business and
multiple addresses on labels is to allow industry members to use a
single label for their products rather than having to seek approval of
multiple labels. TTB notes that, under both the existing and proposed
regulations, industry members are always free to include optional
statements that provide consumers with more information about their
production and bottling processes if they wish.
TTB seeks comments from all interested parties, including industry
members and consumers, on whether the proposed labeling requirements
provide adequate information to the consumer while avoiding undue
burdens on industry members. TTB also seeks comments on whether the
standards for wine labels should continue to require specific
information about the place where production and/or bottling operations
occurred.
f. Name and address for imported alcohol beverages. The name and
address inform the consumer of the identity of the importer of the
alcohol beverage product and the location of the importer's principal
place of business. The current regulations at Sec. 4.35(b), 5.36(b),
and 7.25(b) provide that, on labels of imported wines, distilled
spirits and malt beverages, respectively, the words ``imported by,'' or
a similar appropriate phrase, must be stated, followed immediately by
the name of the permittee who is the importer, or exclusive agent, or
sole distributor, or other person responsible for the importation,
together with the principal place of business in the United States of
such person.
Like the current regulations, the proposed regulations in
Sec. Sec. 4.68, 5.68, and 7.68 require the name and address of the
importer when the product is imported in containers. The proposed
regulations clarify that for purposes of these sections, the importer
is the holder of an importer's basic permit making the original Customs
entry into the United States, or is the person for whom such entry is
made, or the holder of an importer's basic permit who is the agent,
distributor, or franchise holder for the particular brand of imported
alcohol beverages and who places the order abroad. These provisions
mirror the policy set forth in Revenue Ruling 71-535 with regard to the
name and address requirements applicable to importers, and the ruling
will be superseded by the proposed rule.
Proposed Sec. Sec. 4.67, 5.67, and 7.67 address the labeling of
products bottled after importation. If the product is bottled after
importation in bulk, by or for the importer thereof, the proposed rules
require an ``imported and bottled by'' or ``imported by and bottled
for'' statement, as appropriate.
The proposed regulations in Sec. Sec. 4.67, 5.67, and 7.67
specifically address the name and address requirements applicable to
wine, distilled spirits, and malt beverages that are imported in bulk
and then subject to further production or blending activities in the
United States.
In section 1421 of the Taxpayer Relief Act of 1997, Public Law 105-
34, Congress enacted a new provision in the IRC which permits the
transfer of beer in bulk containers from customs custody to internal
revenue bond at a brewery. After transfer to internal revenue bond at a
brewery, imported beer may be bottled or packed without change or with
only the addition of water and carbon dioxide, or may be blended with
domestic or other imported beer and bottled or packed.
In ATF Procedure 98-1, TTB's predecessor agency provided guidance
to brewers and bottlers for the labeling of imported malt beverages
bottled in the United States. This guidance was necessary because the
existing regulations in part 7 do not address the labeling of imported
malt beverages that are bottled in the United States, or the labeling
of imported malt beverages that are blended with other imported malt
beverages or with domestic malt beverages, and then bottled or packed
in the United States.
Section 1422 of The Taxpayer Relief Act of 1997 amended 26 U.S.C
5364 to allow the importation of wine in bulk to bonded wine premises;
the law was amended the following year by Public Law 105-206 to
restrict this privilege to natural wine. However, even prior to
[[Page 60576]]
this amendment, imported taxpaid wine could be brought onto taxpaid
wine premises and bottled in the United States. Thus, the regulations
in part 4 already provide for the labeling of wine bottled after
importation. However, the current regulations do not reflect the fact
that wine may be subjected to production activities in the United
States after importation in bulk. ATF Procedure 98-3 provided some
guidance on this issue.
Similarly, the current regulations in part 5 provide for the
labeling of distilled spirits bottled after importation, but do not
provide rules concerning the labeling of spirits that were subject to
production activities in the United States after importation.
Thus, proposed Sec. Sec. 4.67, 5.67, and 7.67 provide rules for
the labeling of wine, distilled spirits, and malt beverages that are
imported in bulk and are then blended with wine, distilled spirits, or
malt beverages, respectively, of a different country of origin, or
subjected to production activities in the United States that would
alter the class or type of the product. The proposed rules provide that
such products must be labeled with a ``bottled by'' statement, rather
than an ``imported by'' statement. ATF Procedure 98-1 would be
superseded by the proposed rule, because its provisions on the labeling
of malt beverages imported in bulk will be incorporated, with
modifications, into the name and address regulations found in proposed
Sec. 7.67.
As further discussed in the next section of this preamble, industry
members should note that pursuant to CBP regulations at 19 CFR parts
102 and 134, imported alcohol beverages that are further processed in
the United States, or that are blended with domestic alcohol beverages
in the United States, may be subject to a country of origin marking
requirement, even when the class or type of the product has been
altered in the United States. See ATF Ruling 2001-2.
g. Country of origin. Current regulations require a country of
origin statement on labels of imported distilled spirits, but include
no such requirement for imported wine or malt beverages. Nonetheless,
U.S. Customs and Border Protection (CBP) regulations require a country
of origin statement to appear on containers of all imported alcohol
beverages, including alcohol beverages that are imported in bulk and
then subjected to certain production activities or bottling in the
United States if, pursuant to CBP regulations, the beverage is the
product of a country other than the United States.
The existing distilled spirits regulations in Sec. 5.36(e) provide
as follows: ``On labels of imported distilled spirits there shall be
stated the country of origin in substantially the following form
``Product of __'', the blank to be filled in with the name of the
country of origin.'' TTB's predecessor agency, ATF, was asked to
clarify this requirement as applied to products that consist of blends
of spirits produced in more than one country, including mixtures of
foreign and domestic spirits. ATF determined that when the country of
origin regulation in Part 5 was originally written, the agency did not
contemplate that bottlers would blend imported and domestic spirits.
When written, the regulations assumed that imported spirits would be
bottled using 100 percent imported spirits. Accordingly, ATF issued ATF
Ruling 2001-2 to provide that country of origin statements under the
regulations in part 5 must comply with applicable CBP requirements.
In ATF Ruling 2001-2, ATF concluded that its country of origin
requirements under Sec. 5.36(e) will be interpreted in a manner
consistent with CBP's rules of origin, noting that issuance of separate
ATF regulations might lead to inconsistencies between CBP and ATF rules
and result in confusion for the industries affected by those rules.
Accordingly, the ruling held that for an imported distilled spirit that
is wholly the product of a single country, the country of origin will
be stated in substantially the following form, ``Product of __.'' It
further held that ``substantially the following form'' meant that the
distilled spirit may, in the alternative, be labeled in conformity with
CBP country of origin marking requirements. For a product composed of
spirits produced in more than one country, including mixtures of
foreign and domestic spirits, ATF held that the regulation would be
satisfied if the country of origin was determined and marked in
accordance with CBP regulations. The ruling also noted that an industry
member could seek a ruling from Customs for a determination of the
country of origin for its product.
TTB is proposing to amend Sec. 5.69, and to add new Sec. Sec.
4.69 and 7.69, to clarify the relationship between TTB and CBP
regulations on this issue. As noted, ATF stated in ATF Ruling 2001-2
that issuance of separate ATF regulations on the country of origin
issue might lead to inconsistencies between CBP and ATF rules and
result in confusion for the industries affected by those rules. TTB
shares the concerns expressed by its predecessor agency on this issue.
Accordingly, the proposed Sec. Sec. 4.69, 5.69 and 7.69 simply contain
a cross-reference to the CBP regulations at 19 CFR parts 102 and 134
regarding country of origin statements, rather than independently
requiring a country of origin statement under TTB regulations. The
proposed regulations also provide that ``[l]abeling statements with
regard to the country of origin must be consistent with CBP
regulations.'' Finally, proposed Sec. Sec. 4.69 and 7.69, as well as
proposed Sec. 5.69, provide that the determination of the country (or
countries) of origin, for imported wines, malt beverages, and distilled
spirits, respectively, as well as for blends of imported products with
domestically produced beverages, must comply with CBP regulations.
While this is a new provision in the wine and malt beverage
regulations, it will not impose any labeling changes, as it simply
references an existing requirement found in CBP regulations. However,
TTB believes that the proposed regulation will remind industry members
who import alcohol beverages in bulk for processing or bottling in the
United States that they must place a country of origin statement on the
labels where required to do so by CBP regulations.
As discussed earlier in this preamble, industry members should note
that pursuant to CBP regulations at 19 CFR parts 102 and 134, imported
alcohol beverages that are further processed in the United States, or
that are blended with domestic alcohol beverages in the United States,
may nonetheless be subject to a country of origin marking requirement,
even if the class or type of the product has been altered in the United
States. See ATF Ruling 2001-2. When TTB issues COLAs for distilled
spirits, wine, or malt beverage containers that do (or do not) include
a country of origin statement, it is not making a factual or legal
determination of whether such a statement is necessary, or whether a
labeled country of origin would comply with either TTB or CBP rules. In
fact, the application for label approval typically does not include the
information that would be necessary to make such a determination. It is
the responsibility of the industry member to ensure compliance with the
country of origin marking requirement, both when alcohol beverages are
imported in containers and when imported alcohol beverages are subject
to bottling, blending, or production activities in the United States.
Industry members may seek a ruling from CBP for a determination of the
country of origin for their product.
[[Page 60577]]
6. Subparts F, G, and H--Statements That Are Restricted, Prohibited, or
Prohibited if Misleading
The current regulations include a single section titled
``Prohibited Practices'' that sets forth a number of prohibited
practices and also describes certain labeling practices that are
regulated in various ways. In order to make regulatory provisions
easier to find, and to improve readability, TTB proposes to divide the
regulations addressing prohibited practices into three subparts: (1)
Subpart F, practices that may be used under certain conditions, (2)
subpart G, practices that are always prohibited, and (3) subpart H,
practices that are prohibited only if they are used in a misleading
manner on labels.
Proposed subparts F, G and H each contain language to clarify that
the prohibitions in these subparts apply to any label, container, or
packaging, and define those terms as used in these subparts.
Specifically, for purposes of proposed subparts F, G, and H, the term
``label'' includes all labels on alcohol beverage containers on which
mandatory information may appear, as set forth in proposed Sec. Sec.
4.61, 5.61, and 7.61, as well as any other label on the container.
These proposed sections also set out the parts of the container on
which mandatory information may appear.
The proposed text defines ``packaging'' for purposes of proposed
subparts F, G, and H, as any carton, case, carrier, individual covering
or other packaging of such containers used for sale at retail, but does
not include shipping cartons or cases that are not intended to
accompany the container to the consumer. The proposed rule also
provides that the term ``statement or representation'' as used in those
subparts, includes any statement, design, device, or representation,
and includes pictorial or graphic designs or representations as well as
written ones. It also includes both explicit and implicit statements
and representations. This provision avoids the need to repeat the
reference to each type of statement or representation in every section
in these subparts.
7. Subpart F--Restricted Labeling Statements
TTB is proposing a new section (see proposed Sec. Sec. 4.85, 5.85,
and 7.85) on the use of statements relating to environmental and
sustainability practices, which reflects current TTB policy. The
proposed rule allows statements related to environmental or sustainable
agricultural practices, social justice principles, and other similar
statements (such as, ``Produced using 100% solar energy'' or ``Carbon
Neutral'') to appear on labels as long as the statements are truthful,
specific and not misleading. Statements or logos indicating
environmental, sustainable agricultural, or social justice
certification (such as, ``Biodyvin,'' ``Salmon-Safe,'' or ``Fair Trade
Certified'') may appear on labels of products that are actually
certified by the appropriate organization.
8. Subpart G--Prohibited Labeling Practices
Subpart G sets forth the prohibited labeling practices. The
proposed rule provides that the prohibitions set forth in this subpart
apply to any label, container, or packaging, and then sets out the
definitions of those terms for purposes of this subpart. The prohibited
practices include false statements and obscene or indecent depictions.
The proposed rule restates and reorganizes prohibitions currently found
in the TTB regulations.
9. Subpart H--Labeling Practices That Are Prohibited if They Are
Misleading
Proposed subpart H sets out the general prohibition against any
statement or representation, irrespective of falsity, that is
misleading to consumers as to the age, origin, identity, or other
characteristics of the wine, distilled spirits, or malt beverages, or
with regard to any other material factor. It also sets out different
ways in which statements may be misleading. For example, an otherwise
truthful statement may be misleading because of the omission of
material information, the disclosure of which is necessary to prevent
the statement from being misleading. This is not a new policy, but the
proposed rule sets it out more clearly (see proposed Sec. Sec. 4.122,
5.122, and 7.122).
TTB proposes to cancel Rev. Ruling 55-618, which deals with the use
of the terms ``kosher'' and ``altar'' on wines. TTB believes that it
should not restrict the approval of products labeled as ``altar wine''
to products to be sold only to religious organizations, as the ruling
required, and proposes to eliminate that provision of the ruling.
Additionally, the use of the terms ``altar-type'' or ``altar-style''
wine are not prohibited from appearing on alcohol beverage products
because there is no reasonable basis for protecting the terms. However,
the terms ``kosher style'' and ``kosher type'' will remain restricted
to only kosher wines because the use of such terms on non-kosher wines
would be misleading. TTB does not propose specific regulations
implementing the restriction, but believes it is covered by the general
prohibition on misleading statements.
a. Guarantees. Proposed Sec. Sec. 4.123, 5.123 and 7.123 prohibit
the use of guarantees that are likely to mislead the consumer. Money-
back guarantees are not prohibited. This is a restatement of existing
policy currently found in Sec. Sec. 4.39(a)(5), 5.42(a)(5), and
7.39(a)(5), with minor modifications for clarity.
b. Disparaging statements. Proposed Sec. Sec. 4.124, 5.124 and
7.124 specifically prohibit the use of false or misleading statements
that explicitly or implicitly disparage a competitor's product. This
proposed revision reflects the longstanding ATF and TTB policy (as
expressed in T.D. ATF-180, 49 FR 31667, August 8, 1984) that a
competitor's product is disparaged when statements or claims about the
product, or relating to the product, are false or would tend to mislead
the consumer. This policy does not preclude additional information such
as ``puffery'' statements made about one's own product, nor does it
prohibit truthful, nonmisleading comparative statements or claims that
place the competitor's product in an unfavorable light.
In the proposed regulatory text, TTB also introduces examples of
statements that would be prohibited under this provision. A statement
of opinion such as ``We think our [product] tastes better than any
other [product] on the market'' is not prohibited. However, a statement
such as ``We do not add arsenic to our [product]'', although truthful,
would be considered to be disparaging because it falsely implies that
other producers do add arsenic to their products. Furthermore, labels
may not include statements that disparage their competitor's products
by making specific allegations, such as ``Brand X is not aged in oak
barrels,'' when such statements are untrue.
c. Tests or analyses. Proposed Sec. Sec. 4.125, 5.125 and 7.125
prohibit statements or representations of, or relating to, analyses,
standards, or tests, whether or not truthful, that are likely to
mislead the consumer. These proposed provisions incorporate current
policy, but also provide new examples of such a misleading statement,
designed to illustrate the principle that a truthful statement about a
test or standard may nonetheless be misleading.
d. Depictions of government symbols. Currently, representations
relating to the American flag or the U.S. armed forces are prohibited
from appearing on alcohol beverage labels in order to
[[Page 60578]]
prevent misconceptions that the alcohol beverage is endorsed or
otherwise supervised by the U.S. government or the armed forces.
However, the regulations prohibit the use of flags from other countries
only where it would be misleading. The regulations on U.S. and foreign
flags are based on the same statutory provision of the FAA Act at 27
U.S.C. 205(e)(5) that prohibits deception of the consumer by use of a
name or representation of individuals or organizations when such use
creates a misleading impression of endorsement.
Consistent with the statutory prohibition on which these
regulations are based, it is TTB's current policy to enforce this
regulatory prohibition only where such representations might tend to
mislead consumers. Thus, TTB is proposing to amend the regulations to
remove the blanket prohibition against the use of representations of,
or relating to, the American flag, the armed forces of the United
States, or other symbols associated with the American flag or armed
forces. Instead, proposed Sec. Sec. 4.126, 5.126, and 7.126 retain the
prohibition against the use of such symbols or images where they create
the impression that there was some sort of endorsement by, or
affiliation with, the governmental entity represented. Furthermore,
each of these proposed sections specifically provides that the section
does not prohibit the use of a flag as part of a claim of American
origin or another country of origin.
e. Depictions simulating government stamps or relating to
supervision. Proposed Sec. Sec. 4.127, 5.127, and 7.127 retain
prohibitions against depictions simulating government stamps or
relating to government supervision but provide that these
representations are only prohibited if misleading. TTB solicits
comments on whether there is still a need for regulations on this
issue.
f. Cross-category terms on labels of wine, distilled spirits, and
malt beverages. In proposed Sec. Sec. 4.128, 5.128, and 7.128, TTB
proposes to adopt a new prohibition on the misleading use of cross-
commodity terms. Terms used to designate the class and type of wine,
distilled spirits, and malt beverages are unique to each commodity.
More and more frequently, TTB receives applications for approval of a
label for one commodity where the label bears a term normally
associated with a different commodity.
For malt beverage products, the current TTB regulations at Sec.
7.29(a)(7) prohibit a label from containing any statement, design,
device, or representation that tends to create a false or misleading
impression that the malt beverage contains distilled spirits or is a
distilled spirits product. (See also 27 CFR 4.39(a)(7), which prohibits
misleading statements on wine that create the impression that the wine
contains distilled spirits. This prohibition does not apply to truthful
statements of composition.) While the current regulations do not
prohibit the use of wine terms on malt beverage labels or the use of
wine or malt beverage terms on distilled spirits labels, TTB believes
that the use of terms normally associated with one commodity may be
misleading if used on a product of a different commodity.
For example, if a term that is a class or type designation for wine
is used on a malt beverage label as the brand name or as a distinctive
or fanciful name, or is placed on the label in an otherwise prominent
position, the label may create the misleading impression that the malt
beverage is produced with the addition of wine. As a result, TTB has
denied approval of labels bearing such terms when it has determined
that the labels were misleading. This denial is authorized under TTB's
general authority to prohibit misleading information on labels, which
is codified at current Sec. Sec. 4.39(a), 5.42(a), and 7.29(a).
However, in other cases, TTB has determined that references to other
commodities on labels do not mislead consumers as to the identity of
the product. The determination of whether the reference is misleading
depends on the overall label, and how the information is presented.
TTB believes that, in order to deal with this issue consistently,
the regulations should set forth specific rules about the use of
defined terms for one commodity on labels of another commodity.
Accordingly, TTB is proposing to amend the regulations to specifically
provide that no label, container, or packaging may contain a statement,
design, or device that tends to create the false or misleading
impression that the product is, or contains, a different commodity.
Furthermore, the proposed regulations prohibit class or type
designations (or any homophones or coined words that simulate or
imitate a class or type designation) that are set forth in the TTB
regulations for one commodity from appearing on a label for a product
of a different commodity, if such representation creates a misleading
impression about the identity of the product.
Consistent with past practice, the proposed regulation does not
prohibit a truthful and accurate statement of alcohol content.
Similarly, it does not prohibit the use of a brand name of a different
commodity, provided that the overall label or advertisement does not
create a misleading impression about the identity of the product. The
proposed rule continues to allow the use of cocktail names as brand
names or distinctive or fanciful names, provided that the overall label
or advertisement does not create a misleading impression about the
identity of the product.
The proposed rule does not prohibit the use of truthful and
accurate statements about the production of the product, as part of a
statement of composition or otherwise, such as ``aged in whisky
barrels'' for a malt beverage or wine, so long as such statements do
not create a misleading impression as to the identity of the product.
Consistent with TTB Ruling 2014-4, while statements about aging malt
beverages in barrels previously used in the production or storage of
distilled spirits or wine are not prohibited, statements that imply
that the product contains distilled spirits (such as ``bourbon flavored
beer'') are prohibited as misleading.
Finally, TTB proposes to continue to allow the use of terms that
compare a product or products of one commodity to a product or products
of a different commodity (such as, ``This wine doesn't have the hoppy
taste of beer'') without creating a misleading impression as to the
identity of the product.
TTB solicits comments on whether the proposed prohibition and the
proposed exceptions to the prohibition will adequately protect the
consumer and whether the proposed regulations will require changes to
existing labels. TTB particularly solicits comments on whether the use
of coined terms and homophones in brand names and elsewhere on the
labels is misleading to consumers when those terms imply similarity to
class and type designations to which a product is not entitled.
g. Appearance of endorsement. The current regulations prohibit the
use of the name of a living person or existing private or public
organization if the use of that name or a representation misleads the
consumer to believe that the product has been endorsed, made, or used
by, or produced for, or under the supervision of, or in accordance with
the specifications of, such individual or organization. TTB proposes,
in Sec. Sec. 4.130, 5.130, and 7.130, to maintain that rule, but to
make more clear that actual endorsements are permitted and that TTB may
request documentation supporting the claim of endorsement at the time
the application for label approval is submitted or at a later time.
[[Page 60579]]
10. Subpart I--Classifications
Subpart I in parts 4, 5, and 7 sets forth rules for the
classification of wine, distilled spirits, and malt beverages,
respectively. As noted earlier in this document, wine, distilled
spirits, and malt beverages are organized into general classes and,
within the classes, more specific types. These classes and types, in
the case of wine and distilled spirits, have specific standards listed
in the regulations; these are known as ``standards of identity.'' For
malt beverages, the class and type designations are based on
designations of products as known to the trade. The specific
classification rules and the changes TTB proposes to make to these
rules will be discussed below in the part-specific sections of this
document.
11. Subpart K for Parts 4 and 5, Standards of Fill
In subpart K of parts 4 and 5, TTB maintains the current
requirements for specified standards of fill (see Sec. Sec. 4.202 and
5.202). (TTB plans to propose changes to the standards of fill in a
separate rulemaking document.) Additionally, TTB proposes to codify its
existing policies regarding aggregate packaging.
a. TTB's Current Regulations on Standards of Fill. TTB administers
regulations setting forth container size and related standards of fill
for containers of distilled spirits and wine distributed within the
United States. (There are no standard of fill requirements for malt
beverages.) The standards of fill appear in the current regulations in
Sec. 4.72 for wine, and Sec. Sec. 5.47 and 5.47a for distilled
spirits. Containers conforming to a standard of fill of, for example,
750 mL--which is a standard of fill prescribed by current regulations
for both wine and distilled spirits--must have a net contents of 750 mL
of that product.
b. Aggregate Packaging to Meet a Standard of Fill. In 1988, TTB's
predecessor agency started permitting bottlers and importers of wine
and distilled spirits products to use containers that did not meet a
standard of fill provided that the non-standard of fill containers were
banded or wrapped together and sold as a single wine or distilled
spirits product that, in total, met an approved standard of fill. For
example, a wine or distilled spirits product sold in a package of
thirty 25 mL containers to meet an authorized standard of fill of 750
mL would be an aggregate package under this policy. While this type of
aggregate packaging has been permitted for some time, TTB's policy has
not yet been codified in the regulations.
In Notice No. 872, published in the Federal Register (64 FR 6485)
on February 9, 1999, ATF proposed to codify standards on this issue.
According to the preamble of this NPRM, the issue of whether standard
of fill requirements may be satisfied by aggregate packaging was first
raised in 1988, when an importer sought permission to import bags
containing 25 individual 15-mL packages of alcohol beverage for a total
of 375 mL, an authorized standard of fill. The request was approved, as
were subsequent requests for other types of containers, such as
distilled spirits products packaged in packs of thirty 25-mL test tubes
to meet an authorized standard of fill of 750 mL.
In the NPRM, ATF stated that it was concerned that the wide array
of container types and packaging coming onto the market--including, but
not limited to, aggregate packaging--would have a number of adverse
impacts including: (1) Confusing consumers as to the quantity and
nature of the alcohol beverage; (2) contributing to administrative
difficulty in determining appropriate excise tax for the products; (3)
making aggregate fill products more easily obtainable by underage
individuals; and (4) creating problems with State and local alcohol
beverage controls, either by conflicting with State standard of fill
provisions or with prohibitions against open containers of alcohol
beverages. Accordingly, the NPRM proposed regulations prohibiting the
use of aggregate packaging to meet standard of fill requirements.
ATF received approximately 100 comments on the NPRM, with 40
percent of the comments against the proposed regulations and 60 percent
favoring them. Comments against the proposed regulations came from the
alcohol beverage industry and related industries, such as packaging
manufacturers; although one alcohol beverage producer supported the
proposed regulations. Comments from industry regarding aggregate
packaging mainly contended that the issue could be addressed with
labeling requirements and that limiting package sizes was an
unnecessary overreach by ATF. Comments on the aggregate packaging
aspect of the proposed regulations came mostly from companies that were
already using aggregate packaging to meet standard of fill
requirements. However, most of the comments against the proposed
regulations were not addressed to aggregate packaging, but to another
aspect of the NPRM, which proposed regulations relating to packaging
that appeared similar to packaging for non-alcohol products. The
comments in favor of the proposed regulations came from consumers,
parents, substance abuse agencies and consumer advocacy organizations,
and were mostly general statements of support for the proposed
regulations that did not specify which aspect of the NPRM (aggregate
packaging or packaging types) they supported.
The regulations proposed in Notice No. 872 to prohibit aggregate
packaging to meet the authorized standards of fill were not finalized,
and the practice of aggregate packaging continues today. ATF encouraged
the industry to adopt a number of safeguards to protect against
consumer deception in the event that aggregate packages were broken
apart and the single-serving packages sold individually. These
safeguards included labeling the individual containers as ``not for
individual sale'' and ``not for children,'' sealing the outer container
with shrink wrap or other secure methods, and encouraging bottlers to
bottle the individual units of the package in authorized standards of
fill (for example, in 50-mL units). TTB continues to allow aggregate
packaging under the following conditions:
The applicant submits to TTB, along with the application
for label approval, a sample of the actual external container and a
sample of one of the smaller internal containers.
The external container, as well as each of the smaller
internal containers, is labeled with all of the mandatory information
required by parts 4 and 24 for wine and parts 5 and 19 for distilled
spirits, as well as the health warning statement required by part 16.
The external container is shrink-wrapped, boxed, or sealed
in such a manner that the smaller internal containers cannot be easily
removed.
Each of the smaller internal containers is labeled ``NOT
FOR INDIVIDUAL SALE.''
The external container bears a statement of total net
contents that clearly shows how the contents of the individual packages
added together are equivalent to one of the authorized standards of
fill. (For example, 750 mL = 30 containers of 25 mL each.)
In recent years, TTB's policy regarding aggregate packaging has
shifted to allow for non-standard of fill containers to be packaged
together even when those containers do not hold the same product. For
example, products of differing standards of identity and differing
alcohol contents have been permitted to be packaged together as one
product. TTB has reevaluated this shift in policy and has determined
that
[[Page 60580]]
it is inconsistent with the original intent of the aggregate packaging
policy, which was to allow one product to be bottled in non-standard of
fill containers that would be banded together so that the sum of the
identical parts would equal a standard of fill for that product.
c. Proposed Regulatory Amendment. The regulations proposed in this
rulemaking document provide for aggregate packaging subject to the
conditions set forth above and with the additional requirements that
the wine or distilled spirits packaged in the individual non-standard
of fill containers within an aggregate package must all be of the same
class and type, alcohol content, and tax class. This is a narrowing of
the current policy that allows for wines and distilled spirits of
differing classes, types, and alcohol contents to be packaged together.
TTB believes that this narrowing of the policy is necessary to maintain
the original intent of standards of fill requirements, reduce consumer
confusion when comparing products, and reduce administrative burden
when calculating the tax liability of an aggregately packaged wine or
distilled spirits product. The proposed provisions related to aggregate
packaging appear in Sec. Sec. 4.204 and 5.204.
If each internal container already complies with an authorized
standard of fill, then the aggregate standard of fill conditions would
not apply, and the internal containers would each be subject to label
approval. The outer packaging would then be subject to the packaging
regulations proposed at Sec. Sec. 4.62 and 5.62. TTB believes it is
appropriate to codify the rules related to aggregate packaging, which
apply to labeling and standards of fill, as part of this modernization
project.
12. Subpart L--Recordkeeping and Substantiation Requirements
Subpart L of parts 4, 5, and 7 sets forth rules for recordkeeping
and substantiation requirements for alcohol beverages. Existing
regulations (27 CFR 4.51, 5.55, and 7.42) require bottlers holding an
original or duplicate original of a certificate of label approval
(COLA) or a certificate of exemption to exhibit such certificates, upon
demand, to a duly authorized representative of the United States
Government. Current regulations (27 CFR 4.40, 5.51, and 7.31) also
require importers to provide a copy of the applicable COLA upon the
request of the appropriate TTB officer or a customs officer. However,
these regulations do not state how long industry members should retain
their COLA. Furthermore, since these regulations were originally
drafted, TTB has implemented the electronic filing of applications for
label approval. Now, over 90 percent of new applications for label
approval are submitted electronically, and the rest are processed
electronically by TTB. Industry members have asked for clarification as
to whether they have to retain paper copies of certificates that were
processed electronically. Finally, because industry members may make
certain specified revisions to approved labels without obtaining a new
COLA, it is important that the industry members keep track of which
label approval they are using when they make such revisions.
Accordingly, proposed Sec. Sec. 4.211, 5.211, and 7.211 are new to
the regulations and provide that, upon request by the appropriate TTB
officer, bottlers and importers must provide evidence of label approval
for a label that is used on an alcohol beverage container and that is
subject to the COLA requirements of the applicable part.
This requirement may be satisfied by providing original
certificates, photocopies or electronic copies of COLAs, or records
showing the TTB identification number assigned to the approved COLA.
Where labels on containers reflect revisions to the approved label that
have been made in compliance with allowable revisions authorized to be
made on the COLA form or otherwise authorized by TTB, the bottler or
importer must be able to identify the COLA covering the product, upon
request by the appropriate TTB officer. Bottlers and importers must be
able to provide this information for a period of five years from the
date the products covered by the COLAs were removed from the bottler's
premises or from customs custody, as applicable.
TTB believes that five years is a reasonable period of time for
record retention because there is a five-year statute of limitations
for criminal violations of the FAA Act. TTB notes that the proposed
rule does not require industry members to retain paper copies of each
certificate; they should simply be able to track a particular removal
to a particular certificate, and they may rely on electronic copies of
certificates, including copies contained in the TTB Public COLA
Registry.
While the FAA Act does not contain any specific recordkeeping
requirements in this regard, the labeling regulations have for decades
required industry members to produce COLAs upon demand. Furthermore,
such records are necessary to enforce the requirements of the FAA Act
with regard to COLAs and certificates of exemption. See, e.g., National
Confectioners Ass'n v. Califano, 569 F.2d 690, 693-94 (D.C. Cir. 1978),
which upheld the FDA's authority to require records in the absence of a
specific statutory requirement where records were necessary to help in
the efficient enforcement of the Federal Food, Drug and Cosmetic Act.
Similarly, the FAA Act provides TTB with comprehensive authority
over the labeling of wine, distilled spirits, and malt beverages, and
the COLA provisions of the FAA Act are specifically designed to
``prevent the sale or shipment or other introduction of distilled
spirits, wine, or malt beverages in interstate or foreign commerce, if
bottled, packaged, or labeled in violation of [27 U.S.C. 205(e)].'' See
27 U.S.C. 205(e). The law specifically requires a certificate holder to
have the COLA in its possession at the time of bottling or removal of
containers from customs custody. Requiring the holder to be able to
show evidence of label approval after removal is simply a clarification
of TTB's current requirements. We note that in addition to the
rulemaking authority provided by 27 U.S.C. 205, TTB has authority under
section 2(d) of the FAA Act, Public Law 74-401 (1935) ``to prescribe
such rules and regulations as may be necessary to carry out [its]
powers and duties'' under the FAA Act.
Proposed Sec. Sec. 4.212, 5.212, and 7.212 set forth specific
substantiation requirements, which are new to the regulations, but
which reflect TTB's current expectations as to the level of evidence
that industry members should have to support labeling claims. The
proposed regulations provide that all claims, whether implicit or
explicit, must have a reasonable basis in fact. Claims that contain
express or implied statements regarding the amount of support for the
claim (e.g., ``tests provide,'' or ``studies show'') must have the
level of substantiation that is claimed.
Furthermore, the proposed regulations provide for the first time
that any labeling claim that does not have a reasonable basis in fact,
or cannot be adequately substantiated upon the request of the
appropriate TTB officer, will be considered misleading. The regulations
in subpart H are similarly amended to include the same requirement. TTB
believes that this provision, which is very similar to the Federal
Trade Commission's policy on substantiation of advertising claims, will
clarify that industry members are responsible for ensuring that all
labeling and advertising claims have adequate substantiation. See ``FTC
Policy
[[Page 60581]]
Statement Regarding Advertising Substantiation'' (Appended to Thompson
Medical Co., 104 F.T.C. 648, 839 (1984), aff'd, 791 F.2d 189 (D.C. Cir.
1986), cert. denied, 479 U.S. 1086 (1987)).
13. Subpart M--Penalties and Compromise of Liability
In proposed subpart M for parts 4, 5, and 7, TTB proposes simply to
include references to various provisions of the FAA Act. Proposed
Sec. Sec. 4.221, 5.221 and 7.221 state that a violation of the
labeling provisions of 27 U.S.C. 205(e) is punishable as a misdemeanor
and refer readers to 27 U.S.C. 207 for the statutory provisions
relating to criminal penalties, consent decrees, and injunctions.
Proposed Sec. Sec. 4.222, 5.222, and 7.222 provide that basic permits
are conditioned upon compliance with the provisions of 27 U.S.C. 205,
including the labeling provisions of parts 4, 5 and 7, and that a
willful violation of the conditions of a basic permit provides grounds
for the revocation or suspension of the permit, as applicable, as set
forth in 27 CFR part 1.
Proposed Sec. Sec. 4.223, 5.223, and 7.223 set forth TTB's
authority to compromise liability for a violation of 27 U.S.C. 205 upon
payment of a sum not in excess of $500 for each offense. This payment
is to be collected by the appropriate TTB officer and deposited into
the Treasury as miscellaneous receipts.
By placing these provisions in the regulations, TTB will make it
easier for a person to locate the penalties for violating the FAA Act
and the regulations implementing the FAA Act. These proposed
regulations will not change the criminal penalty and compromise
provisions, which are set forth in the statute.
14. Subpart N--Paperwork Reduction Act
The Office of Management and Budget (OMB) assigns control numbers
to TTB's information collection requirements. In current parts 4, 5,
and 7, the OMB control numbers, in some instances, are listed at the
end of the sections that impose the respective information collection
requirements. TTB believes that industry members will have an easier
time locating OMB control numbers for information collection
requirements if they are listed in one location. Therefore, proposed
subpart N for parts 4, 5, and 7 contains a listing of those sections of
proposed part 4, 5, or 7, as the case may be, that impose an
information collection requirement along with the assigned OMB control
number.
C. Proposed Changes Specific to 27 CFR Part 4 (Wine)
In addition to the changes discussed in section II B of this
document that apply to more than one commodity, TTB is proposing
additional editorial and substantive changes specific to the wine
labeling regulations in part 4. This section will not repeat the
changes already discussed in section II B of this document.
Accordingly, if a proposed change is not discussed in this section,
please consult section II B. The substantive changes that are unique to
part 4 are described below.
1. WWTG Labeling Protocol
As described below, TTB is proposing to make several liberalizing
changes to the wine labeling regulations in part 4 to conform to
international commitments. TTB believes that these changes will
increase flexibility in labeling for bottlers and importers of wine,
while providing consumers with more information about the wine that
they are purchasing.
The World Wine Trade Group (WWTG), which was founded in 1998, is an
informal grouping of government and industry representatives from
Argentina, Australia, Canada, Chile, the Republic of Georgia, New
Zealand, South Africa, and the United States. The group shares
information and collaborates on a variety of international issues to
create new opportunities for wine trade.
The WWTG Agreement on Requirements for Wine Labeling
(``Agreement'') was initialed on September 20, 2006, and was signed in
Canberra, Australia, on January 23, 2007, by the United States and
other governments. This is an executive agreement and not a treaty. A
full copy of the agreement can be viewed at https://ita.doc.gov/td/ocg/WWTGlabel.pdf. Negotiations of the Agreement proceeded from the view
that common labeling requirements would facilitate trade by providing
industry members with the opportunity to use the same label when
shipping wine to each of the WWTG member countries.
To conform to Article 6 of the Agreement, which requires the
parties to the Agreement to allow information regarding alcohol content
and certain other common mandatory information to be placed anywhere on
a label in a ``single field of vision,'' TTB engaged in rulemaking to
eliminate the requirement in the TTB regulations that alcohol content
be stated on the brand label. See T.D. TTB 114 (78 FR 34565, June 10,
2013). After the rulemaking was completed, the United States deposited
its instrument of acceptance on October 1, 2013, and became a Party to
the Agreement on November 1, 2013.
Under the Agreement, the Parties agreed to continue to discuss
labeling requirements concerning tolerances in alcohol content
statements, vintage wine, grape variety designations, and wine regions,
with a view to concluding an additional agreement on labeling. This
additional agreement--the Labeling Protocol--was signed on March 22,
2013, by several Governments other than the United States, and entered
into force on November 1, 2013. A full copy of the Labeling Protocol
can be found at https://ita.doc.gov/td/ocg/protocol.pdf. Because some of
the existing labeling regulations in parts 4, 5 and 7 are inconsistent
with the terms of the Labeling Protocol, TTB must engage in rulemaking
on some of the issues addressed in the Protocol. We intend to address
those issues in this proposed rule.
The Labeling Protocol reflects labeling requirements concerning
tolerances in alcohol content statements, vintage wine, grape variety
designations, and wine regions that are consistent with U.S. efforts to
remove trade barriers. The Labeling Protocol will allow U.S. wine
producers to export more easily to parties to the Agreement that have
more restrictive labeling standards than the United States.
The proposed changes relating to the Labeling Protocol, as well as
the other substantive changes that are unique to part 4 are described
below, by subpart.
2. Subpart A--General Provisions
Proposed subpart A includes several sections that have general
applicability to part 4, including a revised definitions section, a
section that defines the territorial extent of the regulations,
sections that set forth to whom and to which products the regulations
in part 4 apply, a section that identifies other regulations that
relate to part 4, and sections that address administrative items such
as forms and delegations of the Administrator.
a. Definitions. Proposed Sec. 4.1, which covers definitions of
terms used in part 4, is consistent with the current regulatory text
that appears in Sec. 4.10, with some amendments in addition to those
discussed in section II B of this preamble.
TTB is proposing to add definitions of the following terms:
``brix,'' ``county,'' ``fully finished,'' and ``grape wine.'' These
terms are used throughout part 4.
The proposed rule defines the term ``brix'' as ``[t]he quantity of
dissolved solids expressed as grams of sucrose in
[[Page 60582]]
100 grams of solution at 68 degrees Fahrenheit. (20 degrees Celsius)
(Percent by weight of sugar).'' This definition is derived from and is
consistent with 27 CFR 24.10, with the exception of changing a
typographical error currently found in section 24.10 of ``60 degrees''
to the correct temperature of ``68 degrees.'' TTB intends to correct
the definition in Sec. 24.10 in a separate rulemaking document.
The current and proposed regulatory texts use the term ``county''
when providing for authorized appellations of origin. TTB has been
asked by many industry members if the term ``county'' includes other
political subdivisions that are equivalent to a county, such as a
``parish'' in Louisiana. The proposed rule defines the term ``county''
to include a county or a political subdivision recognized by the State
as a county equivalent. This proposed definition will allow the use of
names of county equivalents as appellations of origin.
The current and proposed regulatory texts use the term ``fully
finished'' when setting forth requirements for labeling wine with an
appellation of origin. For example, one of the conditions in current
Sec. 4.25(b)(1)(ii) is that ``the wine has been fully finished (except
for cellar treatment pursuant to Sec. 4.22(c), and blending that does
not result in an alteration of class or type under Sec. 4.22(b)) in
one of the labeled appellation States.'' The parenthetical statement
after ``fully finished'' appears all three times that term is used in
part 4. Accordingly, TTB is defining the term ``fully finished'' as
``Ready to be bottled, except that it may be further subject to the
practices authorized in Sec. 4.154(c) and to blending that does not
result in an alteration of class or type under Sec. 4.154(b).''
The proposed regulatory text uses the term ``grape wine'' to
include still grape wine, sparkling grape wine, and carbonated grape
wine. The proposed definition reflects the name change of current class
one grape wine to still grape wine, but allows for use of an umbrella
term when referring to still grape wine, sparkling grape wine, and
carbonated grape wine.
The proposed rule also amends the current definitions of the
following terms: ``bottler,'' ``pure condensed must,'' ``total
solids,'' and ``wine.''
The current definition of the term ``bottler'' reads as ``[a]ny
person who places wine in containers of four liters or less.'' TTB is
proposing to remove the size restriction associated with the current
definition to denote that a person filling containers of any size is
considered a ``bottler.'' This change will allow industry members to
use the term ``bottled'' rather than ``packed'' on labels of wine in
containers larger than 4 liters. For example, the industry member may
use ``bottled by ABC winery, Sutton, Massachusetts'' rather than
``packed by ABC winery, Sutton, Massachusetts'' as the mandatory
address statement for a five-liter container. TTB is also proposing to
replace the word ``person'' with the phrase ``[a]ny producer or blender
or wine, proprietor of bonded wine premises, or proprietor of a taxpaid
wine bottling house'' to better define those who are eligible to bottle
wine. The proposed rule amends the term ``bottler'' to read as ``[a]ny
producer or blender of wine, proprietor of bonded wine premises or
proprietor of a taxpaid wine bottling house, who places wine in
containers.''
The proposed rule amends the definition of the term ``pure
condensed must'' by removing the word ``balling'' and replacing it with
the word ``brix'' because the word ``brix'' is more commonly used by
the industry. The terms ``balling'' and ``brix'' are synonymous.
The proposed rule amends the definition of the term ``total
solids'' by adding the words ``with water'' at the end of this
definition to clarify that restoring wine to its original volume must
be done with water.
The proposed rule amends the definition of ``wine'' under the FAA
Act by making clarifying changes, consistent with the definition of
``wine'' in 27 CFR part 1. This is a technical change and does not
alter the current meaning of ``wine'' in part 4.
b. Prohibitions and jurisdictional limits. Proposed Sec. 4.3 sets
forth the general requirements and prohibitions under 27 U.S.C. 205(e).
This repeats the essential elements of the prohibitions found in
current Sec. 4.30, and clarifies that the regulations that prohibit
the alteration of labels apply to persons holding wine for sale.
c. Products that are not ``wine'' under the FAA Act. Proposed
Sec. Sec. 4.5 and 4.6 are new provisions that indicate which wines are
covered by part 4 and which wine products are not covered by part 4.
TTB receives many inquiries on this issue, and TTB believes that
including this information in the regulatory text will be helpful to
its readers.
Certain winery products that may be taxed as wine under the IRC do
not fall within the definition of ``wine'' under the FAA Act, as found
in 27 U.S.C. 211(a)(6), because of the differences between the two
statutes. Thus, proposed Sec. 4.5 clarifies that wine under part 4
contains at least 7 percent and not more than 24 percent alcohol by
volume. Proposed Sec. 4.6(a) clarifies that part 4 does not cover
products that would otherwise meet the definition of wine except that
they contain less than 7 percent alcohol by volume. The proposed rule
states that bottlers and importers of alcohol beverages that do not
fall within the definition of malt beverages, wine, or distilled
spirits under the FAA Act should refer to the applicable labeling
regulations for foods issued by the FDA. Proposed Sec. 4.6(b)
clarifies that products that would otherwise meet the definition of
wine except that they contain more than 24 percent alcohol by volume
are classified as distilled spirits and must be labeled in accordance
with 27 CFR part 5.
Proposed Sec. 4.6 also includes a cross reference to Sec. 4.7,
which refers to labeling requirements under the ABLA and the IRC.
3. Subpart E--Mandatory Label Information
a. Brand labels. Currently, the TTB regulations at Sec. 4.32
require that certain information appear on the brand label of a wine
container, while other mandatory information, and any additional
information, may appear on any label. The brand label is defined in
Sec. 4.10 as ``[t]he label carrying, in the usual distinctive design,
the brand name of the wine'' and, under current Sec. 4.32, the brand
name, class or type designation, and statement of the percentage of
foreign wine in a blend of American and foreign wines (where a
reference is made to the presence of foreign wine on the label), must
appear on the brand label. Other mandatory information may appear on
any label.
In practice, however, a brand label may wrap nearly or entirely
around a bottle or other wine container. As a result, mandatory
information may appear anywhere on certain bottles and containers.
Furthermore, if the label bearing the brand name is on the back of the
container, then it is the brand label.
TTB believes that the current regulations requiring that certain
mandatory information be placed on the brand label of wine containers
are unduly restrictive. TTB believes that consumers are used to looking
at the back and neck labels to find mandatory information on
containers.
Accordingly, TTB is proposing to amend the regulations in proposed
Sec. 4.63 to allow mandatory information to appear on any label on a
wine container.
b. Brand names. Proposed Sec. 4.64 consolidates certain existing
regulations with regard to brand names and puts
[[Page 60583]]
them in one section of the regulations. Current Sec. 4.32 requires
that a brand name be placed on labels of wine. What may be used as a
brand name is specified in Sec. 4.33. The current Sec. 4.39(i)
pertains to geographical brand names. The proposed rule moves these
provisions to proposed Sec. 4.64(c) without substantive changes.
TTB believes that placing the provisions pertaining to geographical
brand names with the other provisions pertaining to brand names will
enable industry members to find and understand the regulations
pertaining to brand names more easily.
c. Alcohol content and the WWTG Labeling Protocol. Under TTB's
current regulations in Sec. 4.36, the required alcohol content
statement for wine may be expressed as a percentage of alcohol by
volume, or as a range, subject to certain requirements. However, the
percentage of alcohol by volume is not required to be specifically
listed on the label if the type designation ``table'' or ``light'' wine
appears on the label. Subject to certain restrictions, a tolerance of
one percentage point is allowed for alcohol content statements of wines
containing more than 14 percent alcohol by volume, and a tolerance of
1.5 percentage points is allowed for wines containing 14 percent or
less alcohol by volume. One of the current exceptions to the tolerance
provision states that the alcohol content statement on a wine label
must correctly indicate both the taxable grade of the wine and the
class and type of the wine if alcohol content is part of the definition
of the class and type.
Pursuant to Article 4.1(b) of the WWTG Labeling Protocol, the
United States has agreed to accept alcohol content tolerances of up to
one percentage point, provided that the alcohol content statement must
correctly indicate the tax category, regardless of tolerance levels.
This is consistent with current regulations, except that it allows the
use of a tolerance in cases that cross over minimum and maximum alcohol
content levels for labeling designations, as long as this would not
affect the tax category.
Accordingly, proposed Sec. 4.65 maintains the current tolerance
levels for alcohol content statements in wine, and maintains the
current exception to the tolerance levels for alcohol content
statements related to maximum and minimum alcohol contents for tax
classifications under 26 U.S.C. 5041. The proposed rule allows the
tolerance levels to apply to alcohol content statements that might
affect the correct class and type designation, w unless the class or
type designation reflects a minimum or maximum alcohol content
requirement consistent with requirements set forth in a tax class.
An example of a class or type designation that reflects an alcohol
content requirement consistent with a requirement set forth in a tax
classification is ``table wine.'' The class and type designation
``table wine'' for a still grape wine is a designation that reflects a
maximum alcohol content of 14 percent alcohol by volume, which is
consistent with the maximum alcohol content for a tax classification
for still wine under 26 U.S.C. 5041. Under current and proposed
regulations, grape wine that is labeled as ``table wine'' need not bear
a numerical alcohol content statement. Thus, the designation ``table
wine'' on a label serves two purposes--it reflects the class and type
designation of the wine, and it reflects the alcohol content for tax
classification purposes. Accordingly, under the proposed rule, a still
grape wine that contains 14.2 percent alcohol by volume would not
receive the benefit of the tolerance to the extent that the wine may
not be labeled either as a ``table wine'' or with an alcohol content of
14 percent or less, regardless of the tolerance prescribed in this
section.
4. Subpart F--Restricted Labeling Statements
Proposed Subpart F--Restricted Labeling Statements, includes
specific rules for the use of certain statements on labels, including
statements regarding allergens, the term ``organic,'' and other
specific statements. The following discussion sets out some of the more
important provisions in proposed subpart F that relate specifically to
wine.
a. Permit numbers. Current Sec. 4.39(e)(2) sets forth specific
format rules for stating optional bonded wine cellar and bonded winery
numbers (for example, ``Bonded Wine Cellar No. __'' or ``B.W. No.
__''). TTB believes these format rules are unnecessarily restrictive
and proposes to delete them. However, proposed Sec. 4.86 retains the
requirement that the permit number appear adjacent to the name and
address of the person operating the wine cellar or winery.
b. Use of vineyard, orchard, farm or ranch names. Current Sec.
4.39(m) provides that the use of vineyard, orchard, farm, or ranch
names can only be used if 95 percent of the wine is produced from
primary winemaking material grown on the named vineyard, orchard, farm,
or ranch. This section further provides that if the name has
geographical or viticultural significance, it is subject to the rules
in Sec. Sec. 4.39(i) and 4.39(b), which pertain to names having
geographical significance.
Consistent with current policy, TTB is proposing to liberalize the
current regulations on the use of vineyard, orchard, farm, or ranch
names to allow the use of those names as part of trade names that are
found on labels. It has been TTB's policy to allow the use of trade
names in name and address statements, such as ``Bottled by John Doe
Vineyards, Seattle, Washington,'' where the wine has not been made from
grapes grown in the referenced vineyard (or even where there is no
vineyard with that name). Furthermore, when such a trade name appears
on the label as part of the bottling address, it may also be used as a
brand name on the label, without meeting the 95 percent requirement.
TTB believes that consumers do not see the use of a vineyard, orchard,
farm or ranch name as part of a trade name as making a claim as to the
source of the grapes, fruit, or other agricultural products used to
make the wine.
Accordingly, the revision to these provisions in proposed Sec.
4.87 clarifies that the 95 percent rule does not apply to trade names
or brand names when the vineyard, orchard, farm, or ranch name is shown
in the mandatory name and address statement on the label. TTB is
retaining the provision that, when used in a brand name, a vineyard,
orchard, farm, or ranch name having geographical or viticultural
significance is subject to the requirements of proposed Sec. 4.64(b)
and (c).
c. Appellations of origin. Proposed Sec. Sec. 4.88 through 4.91
set out the rules for appellations of origin for grape wines. Proposed
Sec. Sec. 4.96 through 4.98 set out the rules for appellations of
origin for fruit wines, agricultural wine, and rice wine. As discussed
in more detail below, TTB is proposing to separate out these rules to
make it easier to locate all of the rules applicable to grape wine and
fruit wine, respectively.
Current Sec. 4.25 sets forth rules governing the minimum
percentage of fruit or other agricultural products that must be grown
within a specific geographic area in order to qualify for the use of an
appellation of origin on a wine label. It also imposes other standards
for use of an appellation of origin; for example, the wine must
generally conform to the standards of the named appellation governing
the composition, method of manufacture, and designation of wines made
in such place.
TTB is proposing to include the appellation of origin requirements
in several sections and incorporate other
[[Page 60584]]
changes as discussed below. In addition to stating what constitutes the
use of an appellation of origin, proposed Sec. 4.88(d) clarifies that
an appellation of origin is required when a grape wine is designated
with a varietal (grape type) designation, a type designation of
varietal significance, or a semi-generic type designation, or when the
wine is labeled with a vintage date. These requirements are currently
found in the class and type regulations in Sec. 4.34.
Current Sec. 4.25(d) provides that an appellation of origin
comprising two or no more than three States which are all contiguous
may be used if: (1) All of the fruit or other agricultural products
were grown in the States indicated, and the percentage of the wine
derived from fruit or other agricultural products grown in each State
is shown on the label, with a tolerance of plus or minus 2 percent; (2)
the wine has been fully finished (except for cellar treatment pursuant
to Sec. 4.22(c), and blending which does not result in an alteration
of class or type under Sec. 4.22(b)) in one of the labeled appellation
States; and (3) the wine conforms to the laws and regulations governing
the composition, method of manufacture, and designation of wines in all
the States listed in the appellation.
In ATF Ruling 91-1, TTB's predecessor agency held that a multistate
appellation of origin cannot be used if conflicting State requirements
preclude conformance with the laws and regulations of all the States
listed in the appellation of origin. ATF also held that, where a
multistate appellation of origin appears on the brand label and the
percentage of the wine derived from grapes grown in each State is
listed on a label other than the brand label, the States in the
multistate appellation of origin must be listed in a descending order
of predominance, according to the percentage of the wine derived from
grapes grown in each State. Where both the multistate appellation of
origin and the listing of the percentage of the wine derived from
grapes grown in each State appear on the brand label, ATF stated that
it would carefully scrutinize the placement and size and type of the
label statements, on a case-by-case basis, to ensure that the label
does not tend to create a misleading impression as to the origin of the
wine.
Current Sec. 4.25(d) also provides for imported wines to be
labeled with an appellation of origin that is comprised of the names of
two or no more than three states, provinces, territories, or similar
political subdivisions of a country equivalent to a state, which are
all contiguous. The appellation may be used if all of the fruit or
other agricultural products were grown in the states, provinces,
territories, or similar political subdivisions of a country equivalent
to a state indicated, and the percentage of the wine derived from fruit
or other agricultural products grown in each state, province,
territory, or similar political subdivision of a country equivalent to
a state is shown on the label with a tolerance of plus or minus 2
percent. Furthermore, the wine must conform to the requirements of the
foreign laws and regulations governing the composition, method of
production, and designation of wines available for consumption within
the country of origin.
In accordance with the WWTG Labeling Protocol, discussed earlier in
this preamble, the proposed rules pertaining to multicounty and
multistate appellations of origin for both domestic and imported wine
in proposed Sec. 4.90 would: (1) Remove the requirement that States
(or political subdivisions for imported wine) be contiguous in order to
claim that the wine is produced from grapes grown in more than one
State; (2) reduce the minimum percentage of grapes from 100 percent to
85 percent for wine to be labeled with such an appellation; (3) remove
the requirement that the percentage of the wine derived from grapes
grown in each State (or political subdivisions for imported wine) must
be shown on the label; (4) add the requirement that the amount of wine
derived from grapes grown in each State (or political subdivision for
imported wine) named in the appellation must be greater than the amount
of wine derived from grapes grown in any State not named in the
appellation; and (5) add the requirement that States (or political
subdivisions for imported wine) be listed in descending order according
to the percentage of wine derived from grapes grown in those States (or
political subdivisions for imported wine).
These amendments are liberalizing in several regards. First, they
would permit the use of such an appellation where at least 85 (rather
than 100) percent of the wine is derived from grapes grown within the
areas named in the appellation. Second, they would eliminate the
requirement to list the percentage of grapes from each State or other
region, thus allowing greater flexibility in blending for producers.
TTB notes that this approach is more consistent with regard to the
rules for single appellations of origin, which may be comprised of not
less than 75 percent wine made from grapes grown in the labeled region
(in the case of an appellation that is a State, county, or similar
political subdivision), or 85 percent (in the case of an appellation
that is a viticultural area), without any requirements for identifying
the percentage of grapes coming from outside of the named appellation.
TTB also notes that the proposed requirements with regard to
listing States and counties in descending order of predominance are
largely consistent with the policy set forth in ATF Ruling 91-1, and
supersedes that ruling. Finally, the proposed requirement will not
require the listing of each State or county (or foreign equivalent) on
the label; however, labels may not, for example, selectively include
States that contributed only a small percentage of grapes while leaving
out States that contributed a larger percentage of grapes. For example,
in a case where grapes used to make a wine were grown in 4 States, with
the first 2 States contributing 45 and 40 percent, respectively, the
third State contributing 12 percent and the fourth State contributing 3
percent, the proposed rule requires the listing of the first 2 States,
in order of predominance, leaving it up to the industry member whether
it wanted to include a third State. However, the third State listed on
the label would have to be the State contributing 12 percent, and not
the State contributing 3 percent, even though in either case, the
States listed would contribute more than 85 percent of the grapes used
to make the wine. The industry member could, of course, choose to list
all 4 States on the label.
Under the proposed rule, a multistate appellation of origin for
American wine would continue to be unavailable unless the wine is fully
finished in one of the labeled appellation States, and the wine
conforms to the laws and regulations governing the composition, method
of manufacture, and designation of wines in all of the States listed in
the appellation, which is consistent with the current regulations.
In general, the current regulations provide that wine derived from
fruit or agricultural products grown in the county or State indicated
on the label may be designated with an appellation of origin. This
means that appellations of origin are available to grape wine as well
as citrus wine, fruit wine, and agricultural wine.
TTB is proposing to separate the appellation of origin requirements
for grape wine from those requirements for fruit and agricultural wine
because an appellation of origin becomes mandatory when grape wine is
labeled with certain type designations or a vintage date. Furthermore,
an appellation of origin for grape wine
[[Page 60585]]
includes viticultural areas, which have no relevance for fruit or
agricultural wine. Otherwise, TTB is proposing the same liberalizing
amendments for wines labeled with appellations of origin, regardless of
whether the wines are made from grapes, other fruit, or other
agricultural products.
d. Estate bottled and estate grown. Proposed Sec. Sec. 4.92 and
4.93 set out the rules for use of the claims ``estate bottled'' and
``estate grown.'' While the ``estate bottled'' rules are unchanged,
except for clarifying changes, the proposed ``estate grown'' regulation
is new, and represents a change in policy.
On November 3, 2010, TTB published Notice No. 109, an advance
notice of proposed rulemaking (ANPRM), that set forth TTB policy
regarding the use of the term ``estate grown'' on wine labels and
requested comments (see 75 FR 67666). Specifically, TTB stated that,
for over twenty years, TTB and its predecessor agency have allowed the
term ``Estate grown'' to be used as a synonym for the term ``Estate
bottled.'' The regulations providing for the use of the term ``Estate
bottled'' are found in current Sec. 4.26 and, in general, allow the
use of that term only if the wine is labeled with a viticultural area
appellation of origin and the bottling winery: (1) Is located in the
labeled viticultural area; (2) grew all of the grapes to make the wine
on land owned or controlled by the winery within the boundaries of the
labeled viticultural area; (3) crushed the grapes, fermented the
resulting must, and finished, aged, and bottled the wine in a
continuous process (the wine at no time having left the premises of the
bottling winery).
Notice No. 109 explained that some industry members had requested
that TTB permit the use of the words ``Estate grown'' on labels of
wines that do not meet the ``Estate bottled'' standards in Sec. 4.26.
TTB invited comments from industry members, consumers, and other
interested parties on whether TTB should propose to amend the
regulations to reflect its current policy that ``Estate grown'' may be
used on a label if the wine meets the requirements for products labeled
``Estate bottled'' under Sec. 4.26. TTB also asked if it should
propose a standard for ``Estate grown'' in the regulations that differs
from that specified for ``Estate bottled'' and, if so, what that
standard should be.
TTB received 16 comments in response to its questions pertaining to
the use of ``Estate grown'' on labels. Only four of the comments were
in support of TTB's policy that ``Estate grown'' may be used on the
label only if the wine meets the requirements for products labeled
``Estate bottled.'' A few of the comments were in support of TTB
codifying its existing policy, and one commenter stated its belief that
all aspects of the ``Estate bottled'' requirements should apply to the
term ``Estate grown,'' except for the requirement of the viticultural
area. Most of the comments suggested that ``Estate bottled'' and
``Estate grown'' are not synonymous.
In this rulemaking document, TTB is proposing to add a section to
the regulations that will provide for the use of the term ``Estate
grown'' (see Sec. 4.93) on a label only if all of the following
conditions are met:
(1) The wine is labeled with an appellation of origin;
(2) The producing winery is located within the appellation of
origin;
(3) The producing winery grew all of the grapes used to make the
wine on land owned or controlled by the producing winery within the
boundaries of the appellation of origin, and fermented 100 percent of
the wine from those grapes; and
(4) If the bottling winery is not the producing winery, the label
must state that the wine was ``estate grown'' by the producing winery,
and the name and address of both wineries must appear on the label. An
acceptable labeling statement would be ``Estate grown and produced by
ABC Winery, Seattle, Washington. Bottled by XYZ Winery, Tacoma,
Washington.''
This is a liberalizing change that will allow the use of the term,
``Estate grown,'' in a way that distinguishes grape growing from
bottling operations.
e. Claims on grape wine labels for viticultural practices that
result in sweet wine. Proposed Sec. 4.94 codifies in the regulations
for the first time the position that TTB's predecessor agency set out
in rulings pertaining to viticultural practices that result in sweet
wine. TTB proposes to supersede ATF Rulings 78-4, 82-4, and 2002-7, by
incorporating the rulings' holdings in proposed Sec. 4.94.
Initially, proposed Sec. 4.94(a) sets out the rules for using
certain terms on grape wine that denote the use of viticultural
practices resulting in sweet wine. In all such cases, the wine must
also be labeled with the amount of sugar contained in the grapes at the
time of harvest and with the amount of residual sugar in the finished
wine.
Proposed Sec. 4.94 provides that the term ``ice wine'' may be used
only to describe wines produced exclusively from grapes that have been
harvested after they have naturally frozen on the vine. The proposed
rule provides that wine produced from grapes that were frozen post-
harvest may not be labeled as ``ice wine,'' but may be labeled with a
statement indicating the wine was made from grapes that were frozen
post-harvest. It provides that wines labeled with the term ``ice
wine,'' ``late harvest,'' or ``late picked'' may not be ameliorated,
concentrated, fortified, or produced from concentrate. Finally,
proposed Sec. 4.94 provides that wine made from grapes that have been
infected with the botrytis cinerea mold may be labeled with a term such
as ``Botrytis Infected,'' ``Pourriture Noble,'' or another name for
infection by the botrytis cinerea mold.
f. Vintage dates for grape wine. Proposed Sec. 4.95 sets out the
rules for the use of vintage dates on wine labels. The current
regulations prescribing requirements for labeling grape wine with
vintage dates are found in Sec. 4.27. These regulations characterize
the vintage date as the year of ``harvest.'' Thus, wine produced from
grapes that were grown in 2012 but harvested early in 2013 must bear
the year 2013 as the vintage date.
However, the WWTG Labeling Protocol provides that ``vintage'' is
the year of growth or harvest of the grapes used to make the wine, as
defined in each Party's laws, regulations, or requirements. The current
definition in TTB's regulations is thus more restrictive than the
definitions found in the Labeling Protocol.
TTB recognizes that other countries have different rules for
vintage dates, based on different growing conditions in different parts
of the world. For example, in the Southern Hemisphere, the growing
season may start in September and end in April, and thus includes parts
of two calendar years. In Australia, the labeling rules provide that
grapes harvested between September 1 and December 31 of a particular
calendar year are treated as if they were harvested in the following
calendar year for purposes of a vintage declaration. This effectively
treats the entire growing season as a single year. In the Northern
Hemisphere, the issue is less likely to arise, but does come up with
regard to grapes that may be harvested in January for an ice wine type
of product.
TTB believes that allowing the year of harvest to be determined
based on the rules of the country of origin will not be misleading to
consumers. Accordingly, we are proposing to amend the regulations to
provide that the year of harvest for imported wines will be determined
in accordance with the country of origin's laws and regulations.
TTB proposes to remove the requirement that a person who wishes to
label wine with a vintage date must possess appropriate records from
the producer substantiating the year of
[[Page 60586]]
vintage and the appellation of origin, because the substantiation
requirements apply to all label claims, not just vintage dates.
TTB proposes to liberalize the requirements for imported wines that
are bottled in the United States, by removing the requirement that such
wines must have been bottled in containers of 5 liters or less prior to
importation, or that they be bottled in the United States from the
original container of the product showing a vintage date. This will
allow the use of vintage dates on wine imported in bulk containers and
bottled in the United States, as long as the bottlers have the
appropriate documentation substantiating that the wine is entitled to
be labeled with a vintage date.
The current regulations also provide that wine bearing a vintage
date must also bear an appellation of origin that is shown in direct
conjunction with the type designation as required by Sec. 4.32(a)(2).
As discussed in the grape wine appellation of origin section of this
preamble, this rule would remove the requirement that the appellation
of origin be shown in direct conjunction with the type designation.
Instead, the appellation of origin would have to be shown in the same
field of vision as the type designation.
The regulations in current Sec. 4.27 also provide that for a wine
to be labeled with a ``vintage date,'' it must have been derived from
grapes harvested in the labeled calendar year. It has been TTB's
longstanding policy that only one vintage date may appear on a label,
even if the wine is made from grapes harvested in different years. We
note that in 1980, in response to a petition, ATF aired a proposal to
allow multiple vintage dates in an advance notice of proposed
rulemaking (see Notice No. 357, November 13, 1980, 45 FR 74942).
Comments on that proposal were evenly divided, and subsequently ATF
issued a notice of proposed rulemaking setting forth specific proposals
(Notice No. 378, August 5, 1981, 46 FR 39850). Because only a few
comments (mainly opposed to allowing multiple vintage dates on labels)
were received in response to that document, on May 18, 1984, ATF
published Notice No. 529, which withdrew the proposal (49 FR 21083). We
do not intend to reopen this issue at the present time. Accordingly,
TTB proposes to codify this policy in proposed Sec. 4.95.
g. Appellations of origin for fruit wine, agricultural wine, and
rice wine. As discussed earlier in this preamble, current Sec. 4.25
prescribes the rules for use of appellations of origin and allows wine
produced from ``fruit or agricultural products'' to bear an appellation
of origin. Proposed Sec. Sec. 4.96 through 4.98 for labeling fruit
wine, agricultural wine, or rice wine contain the same appellation of
origin labeling requirements as are proposed elsewhere for labeling
grape wine. See Sec. Sec. 4.88 through 4.99.
5. Subpart H--Labeling Practices That Are Prohibited if They Are
Misleading
Proposed subpart H sets forth certain labeling practices that are
prohibited if they are used in a misleading way. Most of these subpart
H provisions restate and reorganize rules currently found in the TTB
regulations. Some of the proposed revisions are set forth below.
Proposed Sec. 4.133(a) broadens existing language in current Sec.
4.39(a)(8) to prohibit the use of terms defined in part 4 in a manner
that is not consistent with the part 4 definitions. This would include
optional designations as well as mandatory designations. For example,
under the proposed rule, a wine that was produced from grapes that were
not frozen on the vine may not be labeled with the optional claim ``ice
wine.'' Proposed Sec. 4.133(b) prohibits the use of coined words that
simulate or imitate any class or type designation set forth in parts 4,
5 and 7 unless the wine conforms to the requirements prescribed with
respect to such designation and is in fact so designated on its labels.
Finally, proposed Sec. 4.133(c) and (d) prohibit certain
misleading references to grape varieties and statements of harvest
date, respectively, subject to the provisions of proposed Sec. Sec.
4.136 and 4.134, respectively, as discussed below.
In general, proposed Sec. 4.134 restates the existing rules
prohibiting certain statements of age unless they are made on a label
that bears a vintage date. It allows certain miscellaneous date
statements, such as statements about the date on which a business was
founded. It also specifically states that, subject to certain
exceptions discussed below, the use of harvest or growth dates is not
generally authorized for wines other than those labeled with a vintage
date in accordance with proposed Sec. 4.95.
Proposed Sec. 4.134 liberalizes current TTB policy prohibiting
statements relating to the years of harvest of grapes or fruit as
additional information for wines designated as grape wine or fruit
wine. Accordingly, the proposed regulations allow the use of additional
truthful, accurate, and specific information about the year of harvest
of the grapes or fruit, provided that the label indicates the
percentage of wine derived from grapes or fruit, as applicable,
harvested in each year. If applicable, the years of harvest must be
presented in descending order based on the percentage of wine derived
from grapes or fruit, as applicable, grown in each year. Examples of
allowable statements would be as follows: ``60% of the grapes used to
make this wine were harvested in 2014; the remaining 40% were harvested
in 2013,'' or ``This wine is a blend of 50% wine made from apples
harvested in 2012 and 50% wine made from apples harvested in 2011.''
Proposed Sec. 4.135 is derived from current Sec. 4.39(k) and in
general, continues to prohibit misleading references to the origin of
the wine. The proposed section liberalizes TTB's current policy by
specifically authorizing the use of truthful, accurate, and specific
information about the origin of the grapes, fruit, or other
agricultural materials that were used to produce the wine when such
wine is not labeled with an appellation of origin. The name of the
place may not appear on the label in a way that creates the misleading
impression that the wine is entitled to an appellation of origin.
Under both current and proposed regulations, a wine is entitled to
the name of a State as an appellation of origin if, among other things,
at least 75 percent of the wine is derived from fruit or agricultural
products grown in that State, and it has been fully finished (except
for certain cellar treatment and blending) within the labeled State or
an adjacent State. Thus, if a grape wine is made in New York, and 50
percent of the grapes are grown in New York and the other 50 percent
are grown in Virginia, the wine would not be entitled to either a New
York or a Virginia appellation of origin. Furthermore, the wine would
not be entitled to a multistate appellation of origin, because New York
and Virginia are not contiguous.
Under the proposed regulations, the label for such a wine may
include additional information about where the grapes were grown, even
though the wine is not entitled to either a New York or a Virginia
appellation of origin. However, neither state name can stand alone as
though the wine is entitled to a single state appellation of origin,
nor can the wine be designated as ``New York/Virginia wine.'' The
additional information must set forth the origin of 100 percent of the
grapes, fruit or other agricultural products used to make the wine, in
descending order of predominance, together with the place where the
wine was fermented. This will ensure that the consumer is not misled
into believing that a statement of the origin of the grapes used to
make a grape wine is the same as an appellation of origin for that
wine. For example, if
[[Page 60587]]
the wine in question is designated ``red wine,'' the proposed
regulation would allow the label to include a statement such as ``This
wine was fermented and bottled in New York from 50 percent grapes grown
in New York and 50 percent grapes grown in Virginia.''
Proposed Sec. 4.136(a) and 4.136(b) restate the prohibition in
current Sec. 4.39(n) on the use of varietal names, type designations
of varietal significance, semi-generic geographic type designations, or
geographically distinctive designations, on wines that are not made in
accordance with the standards set forth in the standards of identity
for still grape wine, sparkling grape wine, and carbonated grape wine.
The proposed language also makes it clear that the use of such names on
a grape wine that does not meet the requirements for use of the
designation named is prohibited if it tends to create a false or
misleading impression as to the designation, origin, or identity of the
wine.
Proposed Sec. 4.136(c) codifies and supersedes ATF Ruling 85-14,
which allowed the use of certain information about grape varieties as
additional information on the labels of certain wines. The proposed
regulation allows the use of truthful, accurate, and specific
additional information on the label about the grape varieties used to
make a still grape wine, sparkling grape wine, or carbonated grape
wine, provided that the information includes every grape variety used
to make the wine, listed in descending order of predominance. The
percentage of each grape variety may be, but is not required to be,
shown on the label, with a tolerance of two percentage points. When
shown, percentages must be shown for all grape varieties listed, and
the total must equal 100 percent.
As discussed later in this document, TTB is proposing to liberalize
the rules for use of a designation that includes more than one grape
variety. Under this proposal, a varietal designation that includes the
names of two or more varieties may be used without disclosing the
percentage of the wine derived from each variety, as is currently
required under Sec. 4.23(d). If this option is available, it is not
clear whether industry members will still want to include information
about grape varieties as additional information, rather than labeling
their wines with a varietal designation that includes two or more grape
varieties. However, TTB recognizes that many wine labels currently
include information about grape varieties as additional information;
thus, we are proposing to continue to allow this practice. TTB seeks
comments on this proposal.
TTB is proposing to eliminate the provision in current Sec.
4.39(j) that inappropriately treats ``product names'' as if they were
``brand names,'' and thus causes confusion. The current text allows for
certain ``product names with specific geographical significance'' when
qualified with the word ``brand,'' even where the geographical name
does not accurately represent the origin of the wine. [Emphasis added.]
TTB solicits comments on the proposed revisions with regard to
representations as to origin. In particular, TTB requests information
on whether this proposed change may affect current labels.
TTB is also proposing to eliminate the provision in current Sec.
4.39(l), which prohibits the use of foreign terms which (1) describe a
particular condition of the grapes at the time of harvest; or (2)
denote quality under foreign law on labels of domestically produced
wine. TTB believes that the misleading use of such foreign terms is
covered by the general prohibition of misleading statements or
representations as to the age, origin, identity, or other
characteristics of the wine (see proposed Sec. 4.122).
6. Subpart I--Standards of Identity for Wine
a. General overview of the classes and types of wine. The
regulations governing how wine must be identified on labels and the
provisions for optional labeling statements are found in current
subpart C, and are referred to as the ``standards of identity.''
Current Sec. 4.21 sets forth the standards of identity for wine and
prescribes the several classes and types of wine that an industry
member may use to designate wine. The consistent and accurate
designation of wine leads to consumer and trade understanding of the
quality and identity of the wine.
Current Sec. 4.32 requires a class, type or other designation to
appear on the brand label. The general rules for class and type
designations are set forth in current Sec. 4.34. In general, the
regulations require the class designation to appear on the label;
however, certain type designations are authorized for use in place of a
class designation. These other type designations are not specified in
the current standards of identity but are found elsewhere in the
regulations in part 4. For example, under current Sec. 4.23, the names
of one or more grape varieties may be used as a type designation of a
grape wine, subject to certain conditions. In addition to these
varietal type designations, current Sec. 4.28 sets forth the
conditions for use of ``type designations of varietal significance.''
Current Sec. 4.24 sets out the rules for ``generic,'' ``semi-
generic,'' and ``non-generic'' designations of geographic significance.
TTB is proposing to reorganize the standards of identity so that
proposed Sec. 4.142 includes all of the type designations within the
class designation ``still grape wine.''
In addition to the various designations discussed above, a
statement of composition may be required to accompany certain class and
type designations. For example, current Sec. 4.21(d), (e), and (f)
prescribe the standards of identity for citrus wine, fruit wine, and
wine from other agricultural products, respectively. These standards
require that an adequate statement of composition be placed on the
label, along with the appropriate class designation, when the wine is
produced from more than one type of fruit, citrus fruit, or
agricultural product, respectively. TTB is proposing to amend the
regulations to allow a designation (such as ``apple-pear wine'') rather
than a statement of composition.
TTB is amending the standards of identity to incorporate all of the
ways in which an industry member may designate wine in accordance with
TTB's regulations. By indicating all of the ways an industry member
must or may designate wine within the standards of identity, the
proposed regulations provide better guidance on what constitutes a
class designation or a type designation, and when a type designation
may be used in place of a class designation.
b. Production standards. Current Sec. 4.21 refers to numerous
production standards that impact the way in which a wine may be
designated. These include amelioration limits, volatile acidity levels,
and the addition of brandy and alcohol. However, in many cases, these
standards refer to outdated rules under chapter 51 of the Internal
Revenue Code.
Wine that is domestically produced must be made in compliance with
the production standards set forth in 26 U.S.C. 5381-5387, and
designated in accordance with 26 U.S.C. 5388. These rules are also
found in TTB's IRC-based wine regulations in 27 CFR part 24.
In accordance with part 24, wine that is the product of the juice
or must of sound, ripe grapes or other sound ripe fruit (including
berries), made with any cellar treatment authorized by subparts F and L
of part 24 and containing not more than 21 percent by weight of total
solids, is deemed to be ``natural wine.'' Classes 1, 2, and 3 of the
existing regulations in current Sec. 4.21 are grape wine, sparkling
grape wine, and carbonated grape wine, respectively,
[[Page 60588]]
and are produced by the normal alcoholic fermentation of the juice of
sound, ripe grapes (including restored or unrestored pure condensed
grape must), with or without the addition, after fermentation, of pure
condensed grape must, and with or without added grape brandy or
alcohol, but without other addition or abstraction except as may occur
in cellar treatment. As discussed further below, TTB is proposing to
revise the standards of identity for grape wines and for fruit wines to
clarify that these wines must be ``natural wines'' in accordance with
26 U.S.C. 5381-5383.
c. Natural wine certification. Prior to amendment in 2004, section
5382 of the IRC, 26 U.S.C. 5382(a), set forth certain standards for the
proper cellar treatment of ``natural wine.'' That section provided that
``proper cellar treatment of natural wine constitutes those practices
and procedures in the United States and elsewhere, whether historical
or newly developed, of using various methods and materials to correct
or stabilize the wine, or the fruit juice from which it is made, so as
to produce a finished product acceptable in good commercial practice.''
Section 5382(b) then went on to provide certain practices that were
specifically recognized, including standards for the amelioration and
sweetening of natural wine and standards for the addition of wine
spirits to natural wine.
Section 2002 of the Miscellaneous Trade and Technical Corrections
Act of 2004, Public Law 108-429, 118 Stat. 2434 (``the Act''), was
signed by the President on December 3, 2004. Section 2002 of the Act
revised section 5382(a) of the IRC. The revision of section 5382(a)
took effect on January 1, 2005, and involved the following principal
substantive changes: (1) The addition of a new paragraph (1)(B) to
provide that, in the case of wine produced and imported subject to an
international agreement or treaty, proper cellar treatment of natural
wine includes those practices and procedures acceptable to the United
States under the agreement or treaty; and (2) the addition of a
paragraph (3) setting forth a new certification requirement regarding
production practices and procedures for imported natural wine produced
after December 31, 2004.
The new certification provision directs the Secretary of the
Treasury to accept the practices and procedures used to produce the
wine if, at the time of importation, one of the following conditions is
met:
(1) The Secretary has on file or is provided with a certification
from the government of the producing country, accompanied by an
affirmed laboratory analysis, that the practices and procedures used to
produce the wine constitute proper cellar treatment under regulations
prescribed by the Secretary;
(2) The Secretary has on file or is provided with a certification
required by an international agreement or treaty covering proper cellar
treatment, or the wine is covered by an international agreement or
treaty covering proper cellar treatment that does not require a
certification; or
(3) In the case of an importer that owns or controls or that has an
affiliate that owns or controls a winery operating under a basic permit
issued by the Secretary, the importer certifies that the practices and
procedures used to produce the wine constitute proper cellar treatment
under regulations prescribed by the Secretary.
The certification provision went into effect on January 1, 2005.
Effective May 28, 2008, TTB adopted a final rule implementing the
certification requirements regarding production practices and
procedures for imported natural wine. The regulations implementing this
statutory requirement are found in 27 CFR 27.140, which states that,
except as otherwise provided, an importer of natural wine must have an
original or copy of a certification from the producing country stating
that the practices and procedures used to produce the imported wine
constitute proper cellar treatment in part 24. As provided for in the
law, one exception to this requirement is for natural wines that are
imported from countries that have an international agreement or treaty
(enological practices agreement) with the United States specifying that
the practices and procedures used to produce the wine are acceptable to
the United States. Currently, 35 countries have enological practices
agreements with the United States. These agreements exempt certain
natural grape wines from the natural wine certification requirement.
d. Proposed changes and questions pertaining to the standards of
identity for wine. It is clear that the existing standards of identity
for grape wine (including sparkling grape wine and carbonated grape
wine), citrus wine, and fruit wine are intended to incorporate the
standards set forth in the IRC for the sweetening and amelioration of
natural wine, as well as the standards for the addition of wine
spirits. However, as set forth in further detail below, because of
amendments over time to the IRC standards, the existing regulations
contain a patchwork of inconsistent references to current and prior
standards.
TTB is proposing to update these standards to clarify that these
classes of wine must comply with the standards for ``natural wine'' set
forth in section 5382 of the IRC. For imported wines, this means that a
wine designated as a still grape wine, sparkling grape wine, or
carbonated grape wine must be made in accordance with the standards set
forth in 26 U.S.C. 5382 and 5383 for natural wine, and a wine
designated as a fruit wine must be made in accordance with the
standards set forth in 26 U.S.C. 5382 and 5384 for natural wine. It
should be noted that imported wines can comply with the standards set
forth in 26 U.S.C. 5382 if the practices used to make the wine have
been accepted by the United States in an international agreement or
treaty. Under the proposed rule, imported wines that are not entitled
to a grape wine or fruit wine designation because they are not
``natural wine'' would have to meet the standards of identity for
another designation set forth in part 4 or be designated with a
statement of composition.
Proposed Sec. 4.151 restates the requirements currently found in
Sec. 4.34(a) with regard to the designation of wines with a truthful
and adequate statement of composition where the wine does not conform
to any of the standards of identity found in part 4. As announced in
the Department of the Treasury's semiannual regulatory agenda
(available online at https://www.reginfo.gov), TTB plans to publish a
notice of proposed rulemaking titled ``Proposals Concerning Labeling of
Flavored Wine,'' in which TTB will propose more specific rules
regarding the labeling of flavored wine products. Accordingly, proposed
Sec. 4.151(c) simply states that ``the appropriate TTB officer may
require a statement of composition to identify the base wine(s),
including blends of wine or fermentable materials, as well as other
materials added to the wine before, during, and after fermentation, as
appropriate, in order to ensure that the label provides adequate
information about the identity of the product.''
This proposed language would not change current policy with regard
to statements of composition on wine labels. Proposed Sec. 4.151(c)
also sets forth current policy regarding statements of composition for
a blend of two different types of fruit or agricultural wine. In those
cases, the statement of composition must include of the names of the
types of wine (such as, ``blueberry wine and apple wine'' or ``mead/
rhubarb wine'').
TTB is proposing substantive changes that affect multiple classes
of wine, as
[[Page 60589]]
well as several substantive changes that affect individual classes of
wine. These changes are described below:
i. Amelioration. Pursuant to 26 U.S.C. 5383 and 27 CFR 24.10,
amelioration is the addition to wine or juice, of water, sugar, or a
combination of both to reduce or balance high acid content in some
juice and wines. Amelioration may take place before, during, or after
fermentation. Current Sec. 4.21(a) provides three amelioration
standards for grape wine, and current Sec. 4.21(d), (e), (f), and (g)
provide two amelioration standards each for citrus wine, fruit wine,
and wine from other agricultural products.
Current Sec. 4.21(a) allows grape wine to be ameliorated before,
during, or after fermentation either: (1) By adding, separately or in
combination, dry sugar, or such an amount of sugar and water solution
as will not increase the volume of the resulting product more than 35
percent, as long as the product so ameliorated does not have an alcohol
content derived by fermentation of more than 13 percent by volume, or a
natural acid content, if water has been added, of less than five parts
per thousand, or a total solids content of more than 22 grams per 100
cubic centimeters; (2) by adding, separately or in combination, not
more than 20 percent by weight of dry sugar, or not more than 10
percent by weight of water; or (3) in the case of domestic wine, in
accordance with 26 U.S.C. 5383.
In general, the first two amelioration methods date back to the
late 1930s and could be used for both domestic and imported wines. The
methods conformed to the provisions of the 1939 IRC at 26 U.S.C. 3036.
When the IRC of 1954 was enacted, new amelioration provisions were
added. A specific reference to section 5383 of the 1954 IRC was added
to Sec. 4.21 through the publication of T.D. 6319 (23 FR 7698) on
October 4, 1958.
The amelioration rule in part 24 (27 CFR 24.178) states that ``the
fixed acid level of the juice or wine may not be less than 5.0 grams
per liter after the addition of ameliorating material.'' However, this
requirement only applies in part 4 if water was used as the
ameliorating material. TTB has found that the difference in methods is
confusing for industry members, as well as the public at large.
Furthermore, different terminology relating to amelioration is used
in current parts 4 and 24. Current part 4 refers to a ``natural acid
content'' in parts per thousand, while current part 24 refers to a
``fixed acidity level'' in grams per liter. The difference in
terminology and units also is confusing for industry members, as well
as the public at large.
Accordingly, this proposed rule removes two of the three
amelioration methods listed in the part 4 regulations. This change is
made in proposed Sec. Sec. 4.142, 4.145, and 4.146. The proposed rule
will clarify that grape wines, and fruit wines must all conform to the
standards for natural wine set forth in the IRC.
ii. Cellar treatment. The current regulations for classes 1, 4, and
5 (grape wine, citrus wine, and fruit wine) prohibit the addition or
abstraction (removal) of substances other than those specified in the
standard of identity and those provided for as cellar treatment. As
indicated above, this proposed rule will clarify that grape wine and
fruit wine must be made according to the standards set forth in 26
U.S.C. 5382 and 5384 for natural wine under the IRC. Thus, the proposed
standards of identity for grape wine and fruit wine cross reference the
statutory cellar treatment provisions for natural wine in sections 5382
and 5384. This change is made in proposed Sec. Sec. 4.142 and 4.145.
iii. Added brandy or alcohol. The current regulations concerning
classes 1, 4, and 5, allow for the addition of grape brandy, citrus
brandy, or fruit brandy, respectively, or alcohol. Domestically
produced natural wines may only be produced with the addition of brandy
or wine spirits that are derived from the same kind of fruit. For
example, grape wine can be produced with the addition of grape brandy
or grape wine spirits, and strawberry wine can be produced with the
addition of strawberry brandy or strawberry wine spirits. With regard
to imported wines, however, in some cases, the United States has
recognized fortification practices of the country of origin that allow
for the use of spirits that are derived from a different source.
TTB believes that the existing regulation's authorization of the
addition of ``grape brandy or alcohol'' to grape wine, and the addition
of ``fruit brandy or alcohol'' to fruit wine may cause confusion and is
therefore proposing to instead authorize the addition of ``added
spirits of the type authorized for natural wine under 26 U.S.C. 5382''
in proposed Sec. Sec. 4.142 and 4.145. This change will incorporate
the standards which specify that wine spirits must be derived from the
same type of fruit, which are found in 26 U.S.C. 5382, but it will also
provide for the recognition of different standards for certain imported
wines pursuant to international agreements.
iv. Dessert wine. Current Sec. 4.21(a), (d), (e), (f), and (g)
prescribe the standard for designating grape wine, citrus wine, fruit
wine, and wine from other agricultural products as ``dessert wine.''
Dessert wine is defined as wine having an alcoholic content in excess
of 14 percent but not in excess of 24 percent by volume. TTB is not
proposing to change this standard, but seeks comments on it, as
explained below.
TTB has rejected applications for COLAs for labels that carry the
term ``dessert wine'' where the wine did not contain more than 14
percent alcohol by volume. It has been suggested that the trade and
consumer understanding of the term ``dessert wine'' may no longer be
consistent with the meaning that the regulations assign to it. TTB has
approved labels for wines containing no more than 14 percent alcohol by
volume that include the phrase ``may be served as dessert wine.'' TTB
believes that consumers may believe that the term ``dessert wine''
indicates the level of sweetness that the wine possesses, or may
attribute some other meaning to the word. Accordingly, TTB is
interested in receiving comments pertaining to the use of ``dessert
wine'' as a designation that denotes alcohol content. TTB is also
interested in receiving comments on whether there is a more appropriate
term for designating wines that contain more than 14 percent alcohol by
volume but less than 24 percent alcohol by volume.
v. Light wine. The current regulations for grape wine allow the
term ``light'' to be used in two instances. The first is as an
alternative designation for ``table wine,'' which is defined as ``grape
wine having an alcoholic content not in excess of 14 percent by
volume.'' The second instance in which ``light'' may be used for grape
wine is as a designation that denotes that a ``dessert wine'' that has
no more than 17 percent alcohol by volume (for sherry) or 18 percent
alcohol by volume (for angelica, madeira, muscatel, or port). The
current classes for citrus wine, fruit wine, and wine from other
agricultural products also allow the designation ``light wine'' in lieu
of the designation ``table wine.'' TTB is not proposing to change the
standard for ``light'' wine but is interested in receiving comments as
to whether the proposed use of the designation ``light'' on wine
labels, to indicate alcohol content, is consistent with industry and
consumer understanding of that term.
vi. Natural wine. Current classes 1, 4, and 5 provide for wine that
does not contain ``added brandy'' to be designated as ``natural.'' TTB
has received numerous applications for COLAs which use the designation
``natural.'' On these proposed labels, the term ``natural'' was
intended to indicate
[[Page 60590]]
to the consumer that the wine was produced following a certain set of
production guidelines.
TTB believes that the designation ``natural'' may no longer have
the meaning ascribed to it by the regulations. Additionally, the
definition in the current part 4 is inconsistent with the IRC
definition. Accordingly, the standards of identity no longer provide
that grape wine or fruit wine containing no added brandy or alcohol may
be designated as ``natural.'' TTB is interested in receiving comments
regarding whether trade and consumer understanding of the term
``natural,'' when used on a wine label, is that no brandy has been
added to the wine. TTB is also interested in receiving comments that
indicate how the industry and consumers interpret the term ``natural''
in relation to wine. Finally, commenters should let TTB know if the
proposed change would impact existing labels.
vii. Changes pertaining to individual classes or types. In addition
to the changes affecting multiple classes of wine discussed above, TTB
is making the following changes affecting certain individual classes of
wine:
Champagne ``style'' and ``type:'' Current Sec. 4.21(b)(2)
recognizes ``champagne'' as a type of sparkling grape wine the
effervescence of which results solely from the secondary fermentation
of the wine in glass containers of not greater than one gallon
capacity. Sparkling wines having the taste, aroma, and characteristics
generally attributed to champagne but not otherwise conforming to the
standard for champagne may, in addition to but not instead of the class
designation ``sparkling wine,'' be further designated as ``champagne
style'' or ``champagne type'' or as ``champagne'' (along with an
appellation of origin), and a qualifying term such as ``bulk process,''
``fermented outside the bottle,'' ``secondary fermentation outside the
bottle,'' ``secondary fermentation before bottling,'' ``not fermented
in the bottle,'' or ``not bottle fermented.'' The term ``charmat
method'' or ``charmat process'' may be used as additional information.
The proposed regulations in Sec. 4.173(d) continue to allow the
use of ``champagne'' with one of the qualifying terms specified above
on products designated as ``sparkling wine,'' where their effervescence
results from secondary fermentation in containers with a capacity of
more than one gallon. The proposed regulations clarify that such wines
must comply with the rules applicable to the use of ``champagne'' as a
semi-generic designation, in accordance with proposed Sec. 4.174.
Thus, a sparkling wine that undergoes secondary fermentation in a tank
may be designated, for example, as ``Sparkling wine,'' with the further
designation of ``New York champagne--not fermented in the bottle--
Charmat process,'' or ``California champagne style--bulk process'' as
long as the use of the term ``champagne'' complies with the
grandfathering and other rules set forth in proposed Sec. 4.174.
Fruit wine and citrus wine: The standards of identity
currently provide for a class, fruit wine, in Sec. 4.21(d) and a
class, citrus wine, in Sec. 4.21(e). The production requirements, such
as amelioration and acidity limits, are the same for fruit wine and
citrus wine. Furthermore, the ways in which fruit wine and citrus wine
may be designated are consistent. Finally, TTB does not receive many
applications for COLAs for wines designated as ``citrus wine'' (as
opposed to applications for COLAs for citrus wines derived wholly from
one kind of citrus fruit, such as ``orange wine'' or ``grapefruit
wine''). Eliminating the class ``citrus wine'' would not require a
change to labels of citrus wines that are made from a single type of
citrus fruit. For these reasons and because citrus is a type of fruit,
TTB proposes to eliminate the class of ``citrus wine'' and to include
any wines made from citrus fruits in the fruit wine class. TTB solicits
comments on whether this change (in proposed Sec. 4.145) will require
changes to existing labels.
Agricultural wine: Current Sec. 4.21(f) provides that
``wines from other agricultural products'' constitute class 6. This
class includes wines produced from honey, raisins, dandelions, rice,
maple syrup, and agave. This class does not include wines produced from
fruit that is used in the production of grape wine, fruit wine, or
citrus wine. Currently, wine produced from rice in accordance with the
commonly accepted method of manufacture of such a wine is designated as
Sak[eacute], which is a type of ``wine from other agricultural
products.''
TTB proposes to move Sak[eacute] from current class 6, and create a
new class, ``rice wine,'' in order to more clearly describe the
standards for rice wines, including Sak[eacute] and Gyeongju Beopju.
Pursuant to Article 2.13.2 of the United States-Korea Free Trade
Agreement, the United States agreed to recognize Gyeongju Beopju as a
distinctive product of the Republic of Korea. Gyeongju Beopju was
recognized in TTB Ruling 2012-3 as a non-generic designation of
geographic significance, and as a product made in the Republic of Korea
in accordance with the laws and regulations of the Republic of Korea
governing the manufacture of this product. Proposed Sec. 4.148(c)(2)
recognizes Gyeongju Beopju as a type designation, which means that the
words ``rice wine'' would not have to appear as part of the
designation. TTB seeks comments on whether this is appropriate, or
whether the product should be designated as ``Gyeongju Beopju rice
wine.'' TTB Ruling 2012-3 also recognizes Andong Soju, which is a
distilled spirit, as a distinctive product of the Republic of Korea. As
discussed in section II D of the preamble, TTB is proposing to amend
the distilled spirits regulations to incorporate this holding of the
ruling, and to supersede TTB Ruling 2012-3 in its entirety.
Varietal (grape type) labeling: Proposed Sec. 4.156 sets
out the rules for varietal (grape type) labeling as a type designation
for grape wine. The proposed rule is largely consistent with the
current regulation, but sets out some liberalizing changes consistent
with the WWTG Labeling Protocol, discussed earlier in this preamble.
The regulation providing for the use of one or more grape varieties
as the type designation for grape wine is in current Sec. 4.23. In
addition to other requirements, current Sec. 4.23 requires that a wine
labeled with a varietal designation also be labeled with an appellation
of origin.
Subject to certain exceptions, current Sec. 4.23(b) provides that
the name of a single grape variety may be used as the type designation
of a grape wine if not less than 75 percent of the wine is derived from
grapes of that variety, and if all of that 75 percent is grown in the
area indicated by the labeled appellation of origin.
Current Sec. 4.23(d) sets forth the current rules for the use of
two or more grape varieties as the type designation for a grape wine.
All of the grapes used to make the wine must be of the varieties shown
on the label. The percentage of the wine derived from each variety must
be shown on the label (with a tolerance of plus or minus 2 percentage
points). Finally, if the wine is labeled with a multicounty appellation
of origin, the percentage of the wine derived from each variety from
each county must be shown on the label; and if the wine is labeled with
a multistate appellation of origin, the percentage of the wine derived
from each variety from each State must be shown on the label.
TTB is proposing to make changes consistent with the WWTG Labeling
Protocol. For wines labeled with more than one grape variety as the
type designation, these changes would require that not less than
eighty-five
[[Page 60591]]
percent (instead of 100 percent) of the wine be derived from grapes of
the labeled varieties. They would also remove the requirement that the
percentage of the wine derived from each variety must be shown on the
label. The proposed regulations remove the requirement that, if the
wine is labeled with a multicounty or multistate appellation of origin,
the percentage of the wine derived from each county or State must be
shown on the label. The proposed rule adds a requirement that each
grape variety listed must be in greater proportion in the wine than any
variety that is not listed, and requires that the varieties be listed
in descending order of predominance, based on the percentage of wine
that is derived from each grape variety. Thus, if a wine is made from
four different varieties of grapes, with the first representing 50
percent of the wine, the second representing 40 percent of the wine,
the third representing seven percent of the wine, and the fourth
representing three percent of the wine, the bottler would have three
options under the proposed rule if it wishes to use a varietal
designation. It could list all four of the varieties, in descending
order of predominance, or it could list the first three varieties, in
descending order of predominance, or it could list simply the first two
varieties, in descending order of predominance. However, the proposed
rule would not allow the bottler to include the fourth variety
(representing three percent of the wine) without also including the
third variety (representing seven percent of the wine).
As previously noted, proposed Sec. 4.23(b) requires that 75
percent of the wine must be derived from grapes of the variety listed
on the label. This allows for some blending with wines made from other
grapes, which are not required to be listed on the label. TTB believes
that the proposed rule would provide consumers with adequate
information about the identity of the product, and encourage the use of
multiple varietal designations by producers. The proposed regulations
would afford greater flexibility in the blending of wines.
Proposed Sec. 4.157 sets forth rules on grape type designations of
varietal significance. These are largely consistent with current Sec.
4.28, with the exception of a proposed change relating to the
designation ``Gamay Beaujolais.'' In 1997, ATF published a final rule
(T.D. ATF-388, 62 FR 16749) that phased out the use of the designation
``Gamay Beaujolais'' on American wine labels over a period of 10 years.
The current regulations at Sec. 4.28(e)(3) set out the rules for the
use of the designation ``Gamay Beaujolais'' for wines bottled prior to
April 9, 2007. However, as set forth in current Sec. 4.28(e)(3), the
designation ``Gamay Beaujolais'' may not be used on labels of American
wine bottled on or after April 9, 2007. While wines bottled prior to
that date may still bear the designation in accordance with the
transitional rule, TTB does not believe that it is necessary or useful
to keep the transitional rule in the regulations. However, TTB seeks
comments on whether that provision should be kept in the regulations.
e. Generic, semi-generic, and nongeneric designations of geographic
significance. The regulations prescribing requirements for labeling
wine with terms that have been found to be generic, semi-generic, and
nongeneric designations of geographic significance are currently found
in Sec. 4.24. As described in more detail below, these regulations
have not been updated to reflect amendments to the IRC in 2006
regarding the use of certain ``semi-generic'' names; thus, we are
proposing to amend the regulations to reflect those amendments to the
IRC.
The general rule, as stated in current Sec. 4.24(c)(1), is that a
name of geographic significance, which is also the designation of a
class or type of wine, may be used in the designation of only those
wines of the origin indicated by such name. Examples of these
``nongeneric'' names (such as ``Spanish,'' or ``Napa Valley''), are
listed in Sec. 4.24(c)(2). The exception to this general rule is where
the Administrator has found a name of geographic significance to be
either ``generic'' or ``semi-generic.''
``Generic'' names are those specified in current Sec. 4.24(a)(2)
(such as ``Vermouth'' and ``Sak[eacute]''), which are no longer
considered as having geographic significance but are indicative of a
class or type of wine. A wine may be labeled with a generic designation
regardless of the place of origin. ``Semi-generic'' designations (such
as ``Madeira'' and ``Sherry'') are those names which retain some
geographic significance but which are also known as the designation of
a class or type of wine. Current section 4.24(b)(1) provides that semi-
generic names may be used to designate wines of an origin other than
that indicated by the particular geographic name, provided that the
designation is accompanied by an appellation of origin indicating the
true origin of the wine.
In addition to the general rule set forth above which restricts the
use of nongeneric names used to designate wines, current Sec.
4.24(c)(1) provides that the Administrator may find that certain of
these nongeneric names are also the ``distinctive'' designations of
specific wines. A name of geographic significance is deemed to be a
distinctive designation if it is known to the U.S. consumer and trade
as the designation of a specific wine of a particular place or region,
distinguishable from all other wines. Current section 4.24(c)(3) states
that names such as ``Chambertin,'' ``Liebfraumilch,'' and ``Lacryma
Christi'' are examples of distinctive designations. A list of foreign
distinctive designations appears in subpart D of part 12. Additional
examples of foreign nongeneric names that are not distinctive
designations of wine are listed in subpart C of part 12.
This proposed rule would codify these provisions in three separate
sections, proposed sections Sec. Sec. 4.173 through 4.175.
Proposed Sec. 4.173 defines generic designations of geographical
significance as ``the name of a class or type of wine that once had
geographic significance but has been deemed by the Administrator to
have lost any geographic significance.'' Also, paragraph (b) of
proposed Sec. 4.173 makes clear that ``vermouth'' and ``Sak[eacute]''
comprise the list of generic designations, and are not merely examples
of such designations.
As mentioned above, current Sec. 4.24(b) provides that semi-
generic designations may be used to designate wines of an origin other
than that indicated by the name only if there appears in direct
conjunction therewith an appropriate appellation of origin disclosing
the name of the true place of origin of the wine, and if the wine so
designated conforms to the standards of identity, if any, for such wine
contained in the regulations in part 4, or, if there is no such
standard, to the wine trade's understanding of such class or type.
Examples of semi-generic names that are also type designations for
grape wines are: Angelica, Burgundy, Claret, Chablis, Champagne,
Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine (or Hock),
Sauterne, Haut Sauterne, Sherry, and Tokay.
In proposed Sec. 4.174, TTB is proposing substantive changes to
the regulations governing the use of semi-generic designations on wine
labels. These changes are consistent with changes in the law, which in
turn stem from the 2006 Agreement between the United States and the
European Union (EU) on Trade in Wine (``the EU Agreement''). The EU
Agreement addresses a wide range of issues regarding the production,
labeling, and import requirements for wine that help to
[[Page 60592]]
establish predictable conditions for bilateral wine trade.
Under section 5388(c) of the Internal Revenue Code of 1986 (IRC),
26 U.S.C. 5388(c), a name of geographic significance, which is also the
designation of a class or type of wine, is determined to be semi-
generic only if so found by the Secretary of the Treasury. In the EU
Agreement, the United States made a commitment to seek to change the
legal status of those names to restrict their use solely to wines
originating in the applicable EU Member State, with certain exceptions
for ``grandfathered'' names. The grandfathered names are: Burgundy,
Chablis, Champagne, Chianti, Claret, Haut Sauterne, Hock, Madeira,
Malaga, Marsala, Port, Retsina, Rhine, Sauterne, Sherry, and Tokay.
Shortly thereafter, section 422 of the Tax Relief and Health Care
Act of 2006 (Pub. L. 109-432) amended section 5388 of the IRC (26
U.S.C. 5388) to implement Article 6 of the EU Agreement. The effect of
this change in law is to restrict use of the semi-generic terms
pursuant to the EU Agreement.
Article 6.2 of the EU Agreement and 26 U.S.C. 5388 allow a person
or his or her successor in interest using one of the grandfathered
names in the United States before March 10, 2006, to continue using the
name, provided that the name is only used on labels for wine bearing
the brand name, or the brand name and distinctive or fanciful name, if
any, for which the applicable COLA was issued prior to the date of
signature of the EU Agreement.
In accordance with the EU Agreement and the relevant changes in
U.S. law, TTB has imposed restrictions on the use of the semi-generic
names and the name Retsina. Although Retsina is a class of wine that
was not previously recognized in the TTB regulations or in 26 U.S.C.
5388 as a semi-generic name, under the terms of the EU Agreement and 26
U.S.C. 5388, it is treated the same as the semi-generic names.
Under the provisions of the ``grandfather'' exception, any person
or his or her successor in interest may continue to use a semi-generic
name or Retsina on a wine label, provided the semi-generic name or
Retsina is used only on labels for wine bearing the same brand name, or
the same brand name and a distinctive or fanciful name, if any, that
appear on a COLA issued prior to March 10, 2006. The grandfather clause
is not available to wines originating in the EU. The proposed
amendments will implement these provisions in the part 4 labeling
regulations for the first time.
Accordingly, proposed Sec. 4.174 defines a semi-generic
designation as a geographic term which is also the designation of a
class or type of wine and which has been deemed to have become semi-
generic by the Administrator. It lists the semi-generic names and the
restrictions on their use, in accordance with the provisions of 26
U.S.C. 5388. It should be noted that while the law provides the same
protection to ``Retsina'' as it does to the names that are listed as
being ``semi-generic,'' it does not specifically provide that
``Retsina'' is a semi-generic name. TTB believes that this leads to
confusion. Accordingly, TTB is proposing to amend the regulations to
recognize ``Retsina'' as a semi-generic name. It should be further
noted that, while ``Angelica'' is included as a semi-generic name, it
is not subject to the grandfather provisions under 26 U.S.C. 5388.
ATF Ruling 73-5 held that Spanish wines bearing labels with semi-
generic designations such as ``Burgundy,'' ``Chablis,'' ``Sauterne,''
or ``Rhine'' do not meet the requirements of Sec. 4.25(a)(3). Because
proposed Sec. 4.174(c) requires that imported wine labeled with a
semi-generic designation conform to the requirements of the producing
country, and EU regulations would not allow a wine from Spain to be
called a ``Burgundy,'' ``Chablis,'' ``Sauterne'' or ``Rhine,'' the
proposed rule would supersede ATF Ruling 73-5.
Proposed Sec. 4.175 defines a nongeneric designation as a name of
geographic significance that has not been found by the Administrator to
be generic or semi-generic. The proposed regulation also states that,
``A nongeneric name of geographic significance may be deemed to be the
distinctive designation of a wine if the Administrator finds that it is
known to the consumer and to the trade as the designation of a specific
wine of a particular place or region, distinguishable from all other
wines.'' Other than these clarifying provisions, the changes in
proposed Sec. 4.175 are editorial in nature.
7. Subpart J--American Grape Variety Names
Proposed subpart J of part 4 includes the list of approved names of
American grape varietals, the list of alternate names of American grape
varietals, and the approval processes for grape varietal names.
As previously mentioned, proposed Sec. 4.157 provides the rules
for using the name of one or more grape varieties as a type designation
for a grape wine. Proposed Sec. 4.157(e) provides that the name of a
grape variety may be used in a type designation for an American wine
only if that name has been approved by the Administrator. A list of
approved grape variety names appears in proposed subpart J.
Proposed Sec. 4.191 states how to petition the Administrator for
approval of a grape variety name. This is largely consistent with
existing Sec. 4.93. However, TTB is proposing a change in proposed
Sec. 4.191(e) to codify TTB's current policy with regard to the
administrative approval of grape variety names pending future
rulemaking.
Current Sec. 4.93 provides that the TTB Administrator will publish
the list of approved grape variety names in the Federal Register
annually. TTB is proposing to revise this provision in proposed Sec.
4.191 to eliminate the provision for publishing the names in the
Federal Register. Instead, a complete list of grape variety names
(including those listed in regulations and those temporarily approved
by the Administrator) may be found on the TTB website, at https://www.ttb.gov.
While neither the proposed nor the existing regulations require TTB
to engage in rulemaking before approving the use of a grape variety
name to designate an American wine, it is TTB's preference to go
through rulemaking in order to solicit comments on the use of proposed
varietal names. However, rulemaking takes time, and TTB does not wish
to delay the use of newly approved grape varietal names on American
wine labels. Accordingly, it is TTB's practice to issue an
``administrative approval'' for new grape variety names that meet the
criteria set forth in the regulations. An administrative approval is
temporary in nature, and means that TTB will allow the use of the grape
variety name as a type designation on a wine label pending rulemaking.
An administrative approval may be revoked as a result of subsequent
rulemaking concerning the grape variety name.
Current Sec. 4.92 provides a list of alternative grape variety
names that may be used on a temporary basis, in lieu of the prime name
of the grape variety that is shown in the list. These alternative grape
variety names may be used for wine bottled before a specified date,
which varies from 1997 to 2012. The alternative grape variety names in
the list for wine bottled prior to 1997 and the names in the list for
wine bottled prior to 1999 are not included in proposed Sec. 4.192.
Though absent from the list in the regulations, the alternative names
authorized for wines bottled prior to 1997 and 1999 will still be
authorized. However, TTB no longer believes it is necessary to include
this
[[Page 60593]]
transitional rule in the codified regulations.
D. Proposed Changes Specific to 27 CFR Part 5 (Distilled Spirits)
In addition to the changes discussed in section II B of this
document that apply to more than one commodity, TTB is proposing
editorial and substantive changes specific to the distilled spirits
labeling regulations in part 5. This section will not repeat the
changes already discussed in section II B of this document.
Accordingly, if a proposed change is not discussed in this section,
please consult section II B. The substantive changes that are unique to
part 5 are described below, by subpart.
1. Subpart A--General Provisions
Proposed subpart A includes several sections that have general
applicability to part 5, including a revised definitions section, a
section that defines the territorial extent of the regulations,
sections that set forth to whom and to which products the regulations
in part 5 apply, a section that identifies other regulations that
relate to part 5, and sections addressing administrative items such as
forms and delegations of the Administrator.
Proposed Sec. 5.1, which provides definitions of terms used in
part 5, has some changes from the regulatory text that appears in
current Sec. 5.10. In addition to the proposed amendments discussed
above in section II B of this document, TTB proposes to modify the
definition of ``age'' to simplify it and to make clear that spirits are
only aged when stored in or with oak. The wood contact creates chemical
changes in the spirits, which is the aging process. Thus, for example,
spirits stored in oak barrels lined with paraffin are not ``aged.''
Additionally, TTB proposes to add a definition of ``American
proof,'' which cross references the definition of ``proof.'' The term
``American proof'' is used in some circumstances to clarify that the
proof listed on a certificate should be calculated using the standards
in the part 5 regulations, not under another country's standards.
TTB proposes to amend the definition of ``distilled spirits'' to
codify its longstanding position that products containing less than 0.5
percent alcohol by volume are not regulated as ``distilled spirits''
under the FAA Act.
TTB also proposes to add a definition of ``grain,'' which would
define the term to include cereal grains as well as the seeds of the
pseudocereal grains: amaranth, buckwheat, and quinoa. TTB has received
a number of applications for labels for products using pseudocereals,
and TTB also notes that the FDA has proposed draft guidance allowing
the seeds of pseudocereals to be identified as ``whole grains'' on
labels (see 71 FR 8597, February 17, 2006).
Finally, TTB proposes to define the term ``oak barrel,'' which is
used with regard to the storage of certain bulk spirits. TTB and its
predecessor agencies have traditionally considered a ``new oak
container,'' as used in the current regulations, to refer to a standard
whiskey barrel of approximately 50 gallons capacity. Accordingly, TTB
proposes to define an oak barrel as a ``cylindrical oak drum of
approximately 50 gallons capacity used to age bulk spirits.'' However,
TTB seeks comment on whether smaller barrels or non-cylindrical shaped
barrels should be acceptable for storing distilled spirits where the
standard of identity requires storage in oak barrels.
2. Subpart B--Certificates of Label Approval and Certificates of
Exemption of Label Approval, Subpart C--Alteration of Labels, Adding
Information to Containers, and Relabeling, and Subpart D--Label
Standards
Proposed subparts B, C, and D are updated for clarity and contain
substantive changes as described in section II B of this preamble. The
rules found in proposed Sec. Sec. 5.42--5.44 regarding relabeling
incorporate portions of, and would supersede, ATF Ruling 54-592, which
deals with relabeling of distilled spirits with labels with different
trade names, and ATF Ruling 62-224, which deals with labeling by
wholesalers.
3. Subpart E--Mandatory Label Information
Proposed subpart E of part 5 sets forth the information that is
required to appear on a label and prescribes how that information must
appear on the label. The current regulations governing mandatory label
requirements are found in subpart D of part 5. Proposed subpart E is
generally structured similarly to the corresponding sections in the
current regulations.
TTB is proposing to clarify where mandatory information must appear
on a container. The proposed amendments will have the effect of
increasing flexibility for placing such information on a distilled
spirits container. Current Sec. 5.32(a) requires that the following
appear on the ``brand label'': The brand name, the class and type of
the distilled spirits, the alcohol content, and, on containers that do
not meet a standard of fill, net contents. The term ``brand label'' is
defined in current Sec. 5.11 generally as the principal display panel
that is most likely to be displayed, presented, shown, or examined
under normal retail display conditions. Further, the definition states
that ``[t]he 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.''
TTB believes that the information that currently must appear
together on the brand label (or ``principal display panel'') is closely
related information that, taken together, conveys important facts to
consumers about the identity of the product. TTB is proposing, in
proposed Sec. 5.63(a), to allow this mandatory information to appear
anywhere on the labels, as long as it is within the same field of
vision, which means a single side of a container (which for a
cylindrical container is 40 percent of the circumference) where all
pieces of information can be viewed simultaneously without the need to
turn the container. TTB believes that requiring that this information
appear in the same field of vision, rather than on the display panel
``most likely to be displayed, presented, shown, or examined'' at
retail, is a more objective and understandable standard, particularly
as applied to cylindrical bottles. This amendment also eliminates the
requirement that mandatory information appear parallel to the base of
the container.
Paragraph (b) of current Sec. 5.32 specifies that mandatory
information other than that listed in paragraph (a) must appear either
on the brand label or on a back label, in effect allowing this
information to appear anywhere on the container. Paragraph (b) of the
proposed Sec. 5.63 in effect makes no change in this requirement by
providing that the mandatory information set forth in that paragraph
must appear ``on a label or labels anywhere on the container'' of each
distilled spirits container.
Also with respect to the mandatory information, TTB proposes to
clarify the existing requirement that, if the alcohol content is listed
in terms of using degrees of proof, it must appear in direct
conjunction with the mandatory alcohol content statement. The proposed
rule provides that the statement of proof must appear immediately
adjacent to the mandatory alcohol content statement.
The proposed rule still provides that the mandatory alcohol content
statement must be stated on the label as a percentage of alcohol by
volume. The proof statement may, but need not,
[[Page 60594]]
appear on the label. In ATF Ruling 88-1, TTB's predecessor agency
clarified that the proof must appear in direct conjunction only once on
the label or in an advertisement, specifically, in the place where the
alcohol by volume statement is serving as the mandatory alcohol content
statement. Accordingly, the proposed rule clarifies that additional
statements of proof need not be accompanied by the alcohol by volume
statement.
TTB also proposes in Sec. 5.65(c) to provide for an expanded
tolerance for labeling of alcohol content. The current regulations in
27 CFR 5.37(b) provide a tolerance for a drop in alcohol content only,
of 0.15 percent alcohol by volume for most distilled spirits and of
0.25 percent for spirits with a high solids content or for spirits
bottled in small bottle sizes. The tolerance was established to allow
for variations in alcohol content that occur due to losses in alcohol
content during the bottling process.
Industry members have expressed concern that while improvements in
analytical equipment have made measuring alcohol content more precise,
the volatility of ethyl alcohol makes it challenging during bottling to
control alcohol content within the narrow parameters that are currently
authorized. For example, many distilled spirits products have a minimum
bottling alcohol content of 40 percent alcohol by volume. In some
cases, distillers may target their alcohol content slightly higher than
40 percent, expecting evaporation of alcohol during the bottling
process. However, in some instances, the alcohol content does not drop
to the desired 40 percent during the bottling process. Current TTB
regulations would not allow a product with, for example, an actual
alcohol content of 40.15 percent alcohol by volume to be labeled with
an alcohol content of 40 percent alcohol by volume.
The proposed rule amends the alcohol content regulations in part 5
to allow for an expanded alcohol content tolerance. TTB proposes to
expand the alcohol content tolerance to 0.3 percent alcohol by volume
above or below the labeled alcohol content.
TTB also proposes to make a similar amendment to the alcohol
content regulations found in 27 CFR 19.356. The regulations in part 19
apply to the operations of distilled spirits plants. Section 19.356
sets forth tolerances for alcohol content and fill for bottling
operations, and TTB proposes to expand the alcohol content tolerances
in this section to mirror those in the proposed Sec. 5.65(c). Because
this alcohol content tolerance is larger than the previously allowed
0.25 percent for high solids content or for small bottles, we also
propose to eliminate the stepped tolerance scheme and provide for the
same tolerance for all distilled spirits.
TTB believes that this proposal would allow greater flexibility and
business efficiencies for bottlers. We note that while taxes on
distilled spirits are generally determined on the basis of the labeled
alcohol content of the product, we believe that the proposal does not
present risks to the revenue because there likely will be both
overproof and underproof bottles and there is no economic incentive for
intentionally overproofing bottles. We invite comments on this issue.
The current regulations in 27 CFR 27 CFR 5.36 allow for various
statements as part of the name and address. The phrase ``bottled by''
is simple to understand--it may be used by the bottler of the spirits.
Similarly, the phrase ``distilled by'' may be used only by the original
distiller of the distilled spirits.
Currently, section 5.36(a)(4) allows a variety of terms, as
appropriate, to be used by a rectifier of distilled spirits, including
``blended by,'' ``made by,'' ``prepared by,'' ``manufactured by,'' or
``produced by.'' Because there is no longer a rectification tax on
distilled spirits, and thus these terms have lost their significance
under the IRC, some industry members and consumers are confused as to
when the use of those terms is appropriate. TTB proposes to clarify in
proposed Sec. 5.66(b)(2) the meaning of those terms. For example, the
term ``produced by,'' when applied to distilled spirits, does not refer
to the original distillation of the spirits, but instead indicates a
processing operation (formerly known as rectification) that involves a
change in the class or type of the product through the addition of
flavors or some other processing activity. TTB solicits comments on
whether the proposed definitions of these terms are consistent with
trade and consumer understanding.
TTB has received several inquiries about its existing regulations
on labeling certain whisky products with a State where distillation
occurs. Current Sec. 5.36(d) require the State of distillation to be
listed on the label if it is not included in the mandatory name and
address statement. However, because the name and address statement may
be satisfied with a bottling statement, there is no way to know, simply
by reviewing a proposed label, whether distillation actually occurred
in the same State as the bottling location.
Accordingly, proposed Sec. 5.66(f) would provide that the State of
original distillation for certain whisky products must be shown on the
label in at least one of the following ways:
By including a ``distilled by'' (or ``distilled and
bottled by'' or any other phrase including the word ``distilled'')
statement as part of the mandatory name and address statement, followed
by a single location. This means that a principal place of business or
a list with multiple locations would not suffice;
By including the name of the State in which original
distillation occurred immediately adjacent to the class or type
designation (such as ``Kentucky Bourbon whisky''), as long as
distillation and any required aging occurred in that State; or
By including a separate statement, such as ``Distilled in
[name of State].''
The TTB regulations set forth certain rules for how age statements
may appear on labels. TTB proposes to update the rule, currently found
in Sec. 5.40(d), which states that age, maturity, or similar
statements may not appear on neutral spirits (except for grain
spirits), gin, liqueurs, cordials, cocktails, highballs, bitters,
flavored brandy, flavored gin, flavored rum, flavored vodka, flavored
whisky, and specialties, because such statements are misleading. TTB
has seen recent growth in the number of distilled spirits products,
such as gin, being stored in oak containers. However, the prohibition
in the current regulations means that a producer cannot use age
statements to inform the public how long its product has been stored in
oak containers, and TTB has approved labels using terms such as
``finished'' or ``rested'' for these types of products. TTB believes
that consumers should be able to make their own determinations on how
the aging would affect the product, and that age statements would
provide truthful information to consumers. Accordingly, TTB proposes to
allow age statements on all spirits except for neutral spirits (other
than grain spirits, which may contain an age statement). The revision
appears at proposed Sec. 5.74(e). Proposed Sec. 5.74 incorporates and
supersedes ATF Ruling 93-3, which exempts grappa from the mandatory age
statement for brandies aged less than four years. Finally, TTB proposes
to supersede Revenue Ruling 69-58, which deals with rules for age
statements that have been incorporated in the regulations.
[[Page 60595]]
4. Subparts F, G and H--Restricted and Prohibited Labeling Practices,
and Labeling Practices That Are Prohibited if They Are Misleading
As described in section II B of this document, the current
regulations set forth the prohibited labeling practices in a single
section, Sec. 5.42. In order to make it easier to find the relevant
regulation and to improve readability, TTB proposes to separate these
practices into three subparts--one for practices for which there are
certain rules, one for practices that are prohibited in all instances,
and one for practices that are prohibited only if misleading.
In addition to changes in provisions that apply to all three of the
commodities, which are discussed in section II B of this preamble,
proposed Sec. 5.87 prescribes rules for the use of the terms ``barrel
proof,'' ``cask strength,'' ``original proof,'' ``original barrel
proof,'' ``original cask strength,'' and ``entry proof'' on distilled
spirits labels. The proposed text incorporates the holding, set forth
in ATF Ruling 79-9 that the terms ``original proof,'' ``original barrel
proof,'' and ``entry proof,'' when appearing on a distilled spirits
product label, indicate that the proof of the spirits entered into the
barrel and the proof of the bottled spirits are the same.
The ruling further held that the term ``barrel proof'' appearing on
a distilled spirits label indicates that the bottling proof is not more
than two degrees lower than the proof established at the time the
spirits were gauged for tax determination. The proposed regulations
update the description of the term ``barrel proof'' to take into
account changes in the operation of distilled spirits plants because of
the Distilled Spirits Tax Revision Act of 1979. The reference to the
time of tax determination is no longer the applicable standard under
the current tax determination system. Since the term ``barrel proof''
is intended to indicate that the spirit is approximately the same proof
as when it is dumped from the barrel, the proposed regulations state
that the term may be used on a label when the bottling alcohol content
(proof) of distilled spirits is not more than two degrees of proof
lower than the proof of the spirit when the spirit was dumped from the
barrel. TTB notes that it rarely sees such terms on distilled spirits
labels and specifically seeks comments on whether they still have
relevance and provide meaningful information to the consumer and
whether TTB should regulate their use on labels.
Proposed Sec. 5.88 sets forth rules for the use of the terms
``bottled in bond,'' ``bond,'' ``bonded,'' or ``aged in bond,'' or
other phrases containing these or synonymous terms. The use of these
terms was originally restricted to certain products under the Bottled
in Bond Act of 1897 (29 Stat. 626). The Bottled in Bond Act was
intended to provide standards for certain spirits that would inform
consumers that the spirits were not adulterated. Treasury Department
officers monitored bonded distilled spirits plants. The Bottled in Bond
Act was repealed by the Distilled Spirits Tax Revision Act of 1979 (see
title VIII, subtitle A, Public Law 96-39, 93 Stat. 273). TTB's
predecessor agency, ATF, decided to maintain the rules concerning
``bottled in bond'' and similar terms, because consumers continued to
place value on these terms on labels. Proposed Sec. 5.88 maintains the
requirements for the use of ``bottled in bond'' and similar terms and
reorganizes them for clarity. Imported spirits may use ``bottled in
bond'' and similar terms on labels when the imported spirits are
produced under the same rules that would apply to domestic spirits.
In order to maintain parity between whisky that is aged and vodka
and gin, which do not undergo traditional aging, vodka and gin are
required to be stored in wooden containers in order to use ``bond'' or
similar terms, but the wood containers must be coated or lined with
paraffin or another substance to prevent the vodka or gin from coming
into contact with the wood. TTB seeks comment on whether it should
eliminate the requirement that bonded vodka or gin be stored in wooden
containers. TTB rarely sees ``bonded'' vodka or gin; ``bond'' and
similar terms are most frequently used on labels of whisky. Commenters
may also wish to opine on whether TTB should maintain any special
standards for the use of ``bonded'' or similar terms, since all
domestic distilled spirits products are now bottled on bonded premises.
In addition, proposed Sec. 5.89 would set forth new rules for the
use of multiple distillation claims, such as ``double distilled'' or
``triple distilled.'' Current regulations, at Sec. 5.42(b)(6), provide
that such claims are allowable if they are truthful statements of fact
and further provide that the terms ``double distilled'' or ``triple
distilled'' shall not be permitted on labels of distilled spirits if
the second or third distillation is ``a necessary process for
production of the product.'' TTB is regularly asked for guidance on the
meaning of this regulation and responds on a case-by-case basis
depending on the relevant specific facts. Although TTB policy is clear
that the distillation steps necessary to meet a product's standard of
identity would be considered the first distillation, TTB has not set
forth a policy on how additional distillations may be claimed or
counted where an industry member intends to use a multiple distillation
claim. TTB is proposing in this rulemaking, at proposed Sec. 5.89, to
define a distillation as a single run through a pot still or one run
through a single distillation column of a column (reflux) still. TTB
believes that this definition is consistent with what consumers
understand the terms to mean and also believes that this meaning most
fully informs consumers as to the identity and quality of the distilled
spirits product. TTB specifically seeks comment on this proposed
meaning of distillation and proposed method for counting multiple
distillations.
Proposed Sec. 5.90 sets forth rules for the use on distilled
spirits labels of terms related to Scotland. Such rules currently
appear only in the regulatory sections related to product standards of
identity and class and type, at current Sec. Sec. 5.22(k)(4) and 5.35,
respectively. The proposed provision retains the current rule set forth
at current Sec. 5.22(k)(4), that the words ``Scotch,'' ``Scots,''
``Highland,'' or ``Highlands'' and similar words connoting, indicating,
or commonly associated with, Scotland may be used only on a product
wholly produced in Scotland, but moves this rule to the provisions on
restricted labeling practices in the new subpart F. However, regardless
of where the finished products are produced, the term ``Scotch Whisky''
would not be prohibited from appearing on the label in the statement of
composition for distilled spirits specialty products that use Scotch
Whisky or in the statement of composition on the label of Flavored
Scotch Whisky. (However, even though the finished product may be
produced anywhere, the Scotch Whisky component must continue to be made
in Scotland under the rules of the United Kingdom.) In addition,
proposed Sec. 5.90(b) clarifies (in accordance with current
regulations as well as proposed Sec. 5.127) that phrases related to
government supervision may be allowed only if required or specifically
authorized by the regulations of the United Kingdom, and supersedes
Revenue Ruling 61-15, which applied that rule to specific language on
labels of Scotch whisky bottled in the United States. If this proposed
provision is included in the final rule, the 1961 ruling would be
superseded in its entirety.
Proposed Sec. 5.91 sets forth rules for the use of the term
``pure'' on distilled
[[Page 60596]]
spirits labels, containers, and packaging. This rule currently appears
in Sec. 5.42(b)(5) and provides that the term ``pure'' may not be used
unless it is a truthful representation about a particular ingredient,
it is part of the name of a permittee or retailer for whom the spirits
are bottled, or it is part of the name of the permittee who bottled the
spirits.
5. Subpart I--Standards of Identity for Distilled Spirits
TTB is proposing amendments to the standards of identity for
distilled spirits that are intended to clarify the classes and types of
distilled spirits. TTB also is proposing to insert charts into the
regulatory text to make the relationship between classes and types, and
the standards for each, easier to understand and apply. Throughout the
standards of identity, TTB proposes to identify alcohol content in
terms of alcohol by volume as opposed to degrees of proof.
TTB proposes to clarify, in Sec. 5.141, that the standards of
identity apply to a finished product without regard to whether an
intermediate product is used in the manufacturing process. This means
that the intermediate product is treated as a mixture for the
convenience of the manufacturer, but determinations as to the
classification and labeling of the product will be made without regard
to the fact that the elements of the intermediate product were first
mixed together in the intermediate product. In the case of distilled
spirits specialty products, TTB currently treats intermediate products
as ``natural flavoring materials'' when they are blended into a
product, for the purpose of disclosure as part of a truthful and
adequate statement of composition. TTB has seen changes in the alcohol
beverage industry and in various formulas and believes that treating
intermediate products as natural flavoring materials does not provide
adequate information to consumers, as required by the FAA Act.
Accordingly, TTB proposes to clarify that blending components such as
distilled spirits and wines together first in an ``intermediate
product'' is the same as adding the ingredients separately for purposes
of determining the standard of identity of the finished product.
Additionally, TTB proposes to change its policy with regard to
statements of composition for specialties to require the disclosure of
elements of the intermediate product (including spirits, wines,
flavoring materials, or other components) as part of the statement of
composition.
Some distilled spirits products may conform to the standards of
identity for more than one class. Consistent with longstanding policy,
TTB proposes to clarify, in Sec. 5.141(b)(3), that such a product may
be designated with any class designation to which the product conforms.
For example, a vodka with added natural orange flavor and sugar bottled
at 45 percent alcohol by volume may meet the standard of identity for a
flavored spirit or for a liqueur. Accordingly, the product may be
designated as ``orange flavored vodka'' or ``orange liqueur'' at the
option of the bottler or importer. Under current policy, TTB would not
allow a product to be designated on a single label as both ``orange
flavored vodka'' and ``orange liqueur,'' because TTB views it as
misleading for a label to bear two different class designations. TTB
seeks comments on whether the TTB regulations should permit a distilled
spirits label to bear more than one class designation if the product
conforms to the standards of identity for more than one class.
The following proposed provisions relate to the standards of
identity for distilled spirits products:
Proposed Sec. 5.142 sets forth the standards for neutral spirits.
Current Sec. 5.22(a) states that neutral spirits are distilled spirits
produced from any material at or above 190[deg] proof and, if bottled,
bottled at not less than 80[ordm] proof. Further, ``vodka'' is a
neutral spirit so distilled, or so treated after distillation with
charcoal or other materials, as to be without distinctive character,
aroma, taste, or color. Proposed Sec. 5.142 would clarify several
factors related to designating a neutral spirits product, factors that
typically have been taken into account on a case-by-case basis. First,
TTB is proposing to provide that the source material of the neutral
spirits may be specifically included in the designation on the label of
the product. Thus, the bottler would have the option of labeling a
product as ``Apple Neutral Spirits'' (in addition to ``neutral spirits
distilled from apples'' as the required commodity statement) or ``Grape
Vodka,'' (in addition to ``vodka distilled from fruit'' as the required
commodity statement) as long as such statements accurately describe the
source materials.
TTB also is proposing to codify the holding set forth in Revenue
Ruling 55-740, that neutral spirits, other than grain spirits, that are
stored in wood barrels become specialty products and must be labeled in
accordance with the appropriate rules for such products set forth in
proposed Sec. 5.156. Because storage in wood barrels renders the
spirits not neutral, TTB's predecessor agency determined that consumers
would be misled if spirits, other than grain spirits, were stored in
wood barrels and then labeled as neutral spirits or vodka. Finally, the
proposed regulations include allowable designations for neutral spirits
labels.
TTB also is proposing to amend the standard of identity for vodka,
a type of neutral spirit, to codify the holdings in several past
rulings: Ruling 55-552, which holds that vodka may not be stored in
wood; Ruling 76-3, which explains that vodka treated with charcoal may
be labeled as ``charcoal filtered''; and Ruling 56-98 and Ruling 97-1,
which allow treatment with 2 grams per liter of sugar and trace amounts
(1 gram per million) of citric acid and sugar. In addition, TTB is
specifically seeking comment on whether the requirement that vodka be
without distinctive character, aroma, taste, or color should be
retained and, if this requirement is no longer appropriate, what the
appropriate standards should be for distinguishing vodka from other
neutral spirits.
Proposed Sec. 5.143 sets forth the standards for whiskies. TTB
proposes to clarify that the word whisky may be spelled ``whisky'' or
``whiskey.'' TTB also proposes to require that, where a whisky meets
the standard for one of the types of whiskies, it must be designated
with that type name, except that Tennessee Whisky may be labeled as
Tennessee Whisky even if it meets the standards for one of the type
designations. Currently, TTB allows the term ``Tennessee Whisky'' to
appear on labels, even if the product meets a more specific standard of
identity, such as for bourbon whisky.
In the current regulations, when a whisky meets the standard for a
type of whisky, it is unclear whether the label must use that type
designation or may use the general class ``whisky'' on the label. TTB
believes that consumers expect that the type designation will appear on
the container when it applies. Additionally, historical documents
indicate that TTB's predecessor agencies classified whiskies with the
type designation that applied, and required that type to be the label
designation. For example, in January of 1937, the Federal Alcohol
Administration stated that ``Where a product conforms to the standard
of identity for `Straight Bourbon Whiskey' it must be so designated and
it may not be designated simply as `Whiskey.''' See FA-91, ``A Digest
of Interpretations of Regulations No. 5 Relating to Labeling and
Advertising of Distilled Spirits,'' p. 5.
In order to make the types of whiskies easier to understand, TTB
proposes inserting a chart in the regulations that would set forth the
types of whisky that
[[Page 60597]]
are not distinctive products of other countries, the source material
from which the whisky may be produced, whether storage is required, the
proof at which the whisky may be stored, and whether neutral spirits
and harmless, coloring, flavoring, or blending materials may be used.
Among other things, the proposed rule will codify in the regulations
for the first time TTB's current policy, as set forth in the Distilled
Spirits Beverage Alcohol Manual (TTB P 5110.7), that coloring,
flavoring, or blending materials may not be added to products
designated as ``bourbon whisky.''
TTB also proposes to provide for a new type designation of ``white
whisky or unaged whisky.'' TTB has seen a marked increase in the number
of products on the market that are distilled from grain but are unaged
or that are aged for very short periods of time. Under current
regulations, unaged products would not be eligible for a whisky
designation (other than corn whisky) and would have to be labeled with
a distinctive or fanciful name, along with a statement of composition.
In order to provide guidance for these products, TTB proposes that
products that are either unaged (so they are colorless) or aged and
then filtered to remove color should be designated as ``white whisky''
or ``unaged whisky,'' respectively. This proposal represents a change
in policy, because currently all whiskies (except corn whisky) must be
aged, although there is no minimum time requirement for such aging. TTB
believes that currently some distillers may be using a barrel for a
very short aging process solely for the purpose of meeting the
requirement to age for a minimal time. Consequently, TTB is proposing
the new type designation of ``white whisky or unaged whisky'' and
specifically requests comments on this new type and its standards.
In addition, TTB proposes to maintain the definitions for Scotch
Whisky, Canadian Whisky, and Irish Whisky without change, but seeks
comment on whether these standards should be clarified to indicate that
certain standards for these types may differ from U.S. standards for
whisky. For example, Scotch Whisky is whisky produced in Scotland in
accordance with United Kingdom laws and regulations, which do not
require that whisky be aged in new charred oak barrels. TTB policy is
to allow whisky labeled as Scotch whisky to be produced under United
Kingdom standards, and TTB seeks comment on whether, and what,
additional clarifications in the regulations would improve
understanding of the TTB labeling regulations.
Proposed Sec. 5.144 generally restates the current standards for
gin, but, in order to make the use of other aromatics optional, would
change the requirement that gin be made with juniper berries and other
aromatics. Also, TTB proposes to remove the designation ``Geneva gin
(Hollands gin)'' from the list of ``distilled gin'' designations
because that designation usually refers to gin that has been stored in
wooden containers, which is not necessarily synonymous with the
description ``distilled gin.''
Proposed Sec. 5.145 sets out the standards for brandy, with minor
clarifying changes. One of the proposed amendments would allow the use
of the terms ``Slivovitz'' and ``Kirschwasser'' as optional
designations for plum brandy and cherry brandy, respectively.
Additionally, TTB proposes to incorporate Armagnac, Brandy de Jerez,
and Calvados into the regulations as types of brandy. These products
are distinctive products of France, Spain, and France, respectively,
and they are recognized by TTB under current policy.
Proposed Sec. 5.148 is a new section that provides for a class
called ``agave spirits.'' Currently, spirits that are distilled from
agave are considered distilled spirits specialties, and the labels of
the products must contain a statement of composition, such as ``Spirits
Distilled from Agave.'' Because TTB's standards of identity are
generally distinguished by agricultural commodity, TTB believes it
would be useful for consumers and for industry members if TTB created a
class of spirits for spirits that are distilled from agave. TTB
proposes that the mash for agave spirits be comprised of at least 51
percent agave and that it may contain up to 49 percent sugar (weight
before the addition of water). As proposed, Tequila, which currently
appears as a class of distilled spirits in the TTB regulations and
Mezcal, which does not currently appear in the TTB regulations but
which is protected under the North American Free Trade Agreement, would
be types of agave spirits produced in Mexico in accordance with the
laws and regulations of Mexico. This would not require a change of
labels of Tequila or Mezcal because these type designations may appear
alone on the label without the class name ``agave spirits.''
Proposed Sec. 5.149 sets forth a new standard of identity for
Absinthe (or Absinth). Absinthe products are distilled spirits products
produced with herbs, including wormwood, fennel, and anise. Under
Industry Circular 2007-5, certain absinthe-type products are now
allowed in the U.S. market, but are generally classified as distilled
spirits specialty products or liqueurs (if they meet the standard of
identity for a liqueur). Under current TTB policy, the word
``Absinthe'' may not stand alone on the label; therefore, labels use
multi-word names that include the word ``Absinthe'' (such as ``Absinthe
Vert'' or ``Absinthe Superieure''). TTB believes that consumers
understand what absinthe is and that it is appropriate to set out a
standard of identity for absinthe. The proposed standard reminds the
reader that the products must be thujone-free under FDA regulations.
Based on current limits of detection, a product is considered
``thujone-free'' if it contains less than 10 parts per million of
thujone. Finally, TTB proposes to supersede Industry Circular 2007-5 in
its entirety, without incorporating the requirement that all wormwood-
containing products undergo analysis by TTB's laboratory before
approval. TTB will verify compliance with FDA limitations on thujone
through marketplace review and distilled spirits plant investigations,
where necessary.
Proposed Sec. 5.150 sets out the standards for cordials and
liqueurs. Among other changes, TTB proposes to incorporate into this
section the holding in Revenue Ruling 61-71, which prohibits the terms
``distilled,'' ``compound,'' or ``straight'' from appearing on labels
for cordials and liqueurs. These terms imply original distillation;
thus, they are deemed to be misleading on labels for cordials and
liqueurs.
Certain cordials or liqueurs may be designated with a name known to
consumers as referring to a cordial or liqueur and therefore need not
use the word ``cordial'' or ``liqueur'' as part of their designation.
Thus, pursuant to TTB's Beverage Alcohol Manual (TTB P 5110.7), several
cordials and liqueurs--specifically, Kummel, Ouzo, Anise, Anisette,
Sambuca, Peppermint Schnapps, Triple Sec, Cura[ccedil]ao, Goldwasser,
and Cr[egrave]me de [predominant flavor]--currently may be designated
by those names on the labels of those products. TTB proposes to codify
this policy by adding these names as type designations under proposed
Sec. 5.150.
Proposed Sec. 5.151 would establish ``flavored spirits'' as a
revised and expanded class of distilled spirits consisting of spirits
conforming to one of the standards of identity (the ``base spirits'')
to which have been added nonbeverage flavors, wine, or nonalcoholic
natural flavoring
[[Page 60598]]
materials, with or without the addition of sugar, and bottled at not
less than 30 percent alcohol by volume (60 proof). This is a
clarification of current TTB policy, which is that you may not add
additional spirits to a base spirit in a flavored spirits product, even
if the additional spirits are mixed into an intermediate product.
The TTB regulations currently list flavored brandy, flavored gin,
flavored rum, flavored vodka, and flavored whisky as the class
designations under Class 9. Other types or classes of distilled spirits
that are flavored currently are treated as distilled spirits specialty
products and the labels for such products must contain a statement of
composition. While TTB allows for any spirit to appear as part of a
truthful statement of composition, TTB does not believe that consumers
perceive a distinction between, for example ``Orange Flavored
Tequila''--which is how a flavored spirit would be designated under the
proposed rule--and ``Tequila with Orange Flavor''--which is how the
statement of composition would appear for a distilled spirits specialty
product. TTB therefore believes it should allow any type of base spirit
to be flavored in accordance with the flavored spirits standard instead
of just brandy, gin, rum, vodka, and whisky, as permitted by the
current regulations. Accordingly, proposed Sec. 5.151 provides a class
of flavored spirits that would allow any base spirit to be flavored
when made in accordance with the standards of identity set forth in the
regulation. TTB proposes to maintain a minimum alcohol content at
bottling of 30 percent (60[deg] proof) for this revised and expanded
class. Flavored spirits may contain added wine. TTB proposes to
maintain the requirement that wine content above 2\1/2\ percent (or
12\1/2\ percent for brandy) must be disclosed on a label.
One new provision that TTB addresses in the proposed text regarding
standards of identity is the use of the term ``diluted.'' As set forth
in ATF Ruling 75-32, TTB currently requires that distilled spirits
bottled at below the specified alcohol content for that particular
class be designated on the label as ``diluted'' in direct conjunction
with the statement of class and type to which it refers. For example,
under the standard of identity for vodka set forth at current Sec.
5.22(a), vodka must be bottled at ``not less than 80 proof.'' As a
result, a vodka bottled at 60 proof must bear the statement ``diluted
vodka'' on the label. TTB proposes, in Sec. 5.153, to incorporate this
policy into the regulations by establishing a class of spirits known as
``diluted spirits.'' This applies to products that would otherwise meet
one of the class or type designations specified in subpart I except
that it does not meet the minimum alcohol content, usually because of
reduction of proof through the addition of water. Although the ruling
states that the word ``diluted'' must be readily legible and as
conspicuous as the statement of class to which it refers and in no case
smaller than 8-point Gothic caps (except on small bottles), TTB
proposes to require that the word ``diluted'' appear in readily legible
type at least half the size of the class and type designation to which
it refers. For example, but for the fact that a product is 70 proof, it
would be eligible to be designated as ``Vodka.'' Instead it must be
designated as ``Diluted Vodka''.
Certain geographical designations may be used on distilled spirits
as, or as part of, the designation on the label. In proposed Sec.
5.154, TTB proposes to change the rules for geographical designations
currently found in Sec. 5.22(k) and (l). Specifically, TTB proposes to
provide that geographical names that are not generic may be used on
products made outside of the place indicated by the name, if TTB
determines that the name represents a type of distilled spirits and if
the designation includes a qualifier such as ``type'' or ``style'' or a
statement indicating the true place of production.
For example, Oj[eacute]n is a town in Spain, and ``Aguardiente de
Oj[eacute]n'' is a distilled spirits product associated with Spain.
Thus, the current and proposed regulations provide that ``Ojen'' is an
example of a distinctive type of distilled spirits with a geographical
name that has not become generic. If Ojen were made in the United
States, it could be designated as ``Ojen type'' or ``American Ojen'' or
with another similar phrase.
TTB also proposes to list specific products that are associated
with a particular place that have become generic. These products could
be manufactured in any place, and the label would not be required to
bear a qualifier such as ``type'' or ``style'' or any other dispelling
statement. An example of a name that continues to be considered generic
is ``Aquavit.'' Although this name was traditionally associated with
the Scandinavian countries, TTB believes that by usage and common
knowledge, this name has lost its geographical significance to the
extent that it has become generic. Thus, TTB proposes to list Aquavit,
along with Zubrovka, Arrack, Kummel, Amaretto, and Ouzo, as examples in
this category.
Pursuant to Article 2.13.2 of the United States-Korea Free Trade
Agreement, the United States agreed to recognize Andong Soju as a
distinctive product of the Republic of Korea. See TTB Ruling 2012-3.
Accordingly, TTB is proposing to add Andong Soju to the list of
geographic names that have not become generic and that may not be used
on distilled spirits made in any place outside the particular place or
region indicated in the name. TTB is proposing to supersede TTB Ruling
2012-3.
In addition, TTB proposes to list Habanero, Sambuca, and Goldwasser
as a category of designations that have not become generic, and could
only be used on products produced outside of the places indicated by
the names if the label contains a phrase clearly indicating the place
of production. Examples of this usage include ``American Sambuca'' and
``Sambuca--Product of the United States.'' This proposal is not
intended to change policy; current regulations in Sec. 5.22(l)(2)
provide Habanero as an example of a name for distilled spirits that are
a distinctive product of a particular place, and the Distilled Spirits
Beverage Alcohol Manual (TTB P 5110.7) recognizes Sambuca and
Goldwasser as distinctive designations. TTB solicits comments
addressing whether or not these terms should still be recognized as
being distinctive of a particular geographical origin.
Under the current Sec. 5.35(a), products that do not meet the
definition of one of the specified classes or types of distilled
spirits must be designated in accordance with trade and consumer
understanding or, if no such understanding exists, by a distinctive or
fanciful name followed by a truthful and adequate statement of
composition. Proposed Sec. 5.156 sets forth a new specific designation
for a class of spirits called ``distilled spirits specialty products.''
By setting forth this new class, TTB intends to clarify the treatment
of distilled spirits specialty products and the labeling requirements
that apply to such products. Products within this class are not
required to be labeled with the designation ``distilled spirits
specialty product.'' Instead, the distinctive or fanciful name together
with the statement of composition acts as the product designation on
the label.
This classification would not make any substantive change except
for labeling requirements for cocktails, highballs, and similar
specialty products. The proposal would eliminate the rule allowing for
a limited statement of composition consisting of only the spirits used
in the manufacture of such
[[Page 60599]]
products. Over the years, TTB has seen an increase of cocktails
recognized in bartenders' recipe books as the industry continued to
innovate. Consumers are not fully informed when a label has only a
cocktail name and the component spirit(s) because of the vast array of
cocktails. Accordingly, TTB proposes to require a full statement of
composition on such specialty products, and proposes to clarify that a
cocktail name may be used as the distinctive or fanciful name on a
distilled spirits specialty product.
Certain ingredients or processes can change the class and type of a
distilled spirit. Proposed Sec. 5.155 sets forth the rule for
alteration of class and type as well as exceptions to the general rule
regarding alteration. Much of this section is found in the current 27
CFR 5.23, but TTB proposes to add wine, when used in Canadian whisky in
accordance with Canadian law, as an exception to the general rule to
make it clear that Canadian producers may add more than 2 and one half
of one percent wine without altering the class from whisky. TTB has
also had a number of requests from industry members for guidance on
labeling products that are stored in two different types of barrels.
For example, whisky must be stored in oak containers, in accordance
with the standard of identity. When a producer stores the whisky in oak
containers and then stores it in a different type of container, such as
a maple barrel, the spirit becomes a distilled spirits specialty
product and must be labeled with a statement of composition, such as
``Bourbon Whisky finished in maple barrels.'' TTB proposes, in Sec.
5.155(c), to add this requirement to the regulations.
Proposed Sec. 5.166 sets forth the rules for the statement of
composition as discussed in section II B of this document.
6. Subpart J--Formulas
The current regulations in subpart C of part 5 set forth
requirements for formulas for distilled spirits. In the present
rulemaking, TTB proposes to maintain the formula requirements with
minor changes to reflect current policy as set forth in TTB Industry
Circular 2007-4. However, TTB believes there may be formula
requirements that no longer serve a labeling purpose. TTB seeks
specific comments on whether certain formula requirements should be
eliminated and the rationale for such a change. TTB may address these
issues in the final rule or in a separate rulemaking document.
7. Subpart K--Standards of Fill and Authorized Container Sizes
Distilled spirits containers must be filled with certain specified
amounts of the product. Additionally, the current regulations prescribe
a maximum headspace for bottles so that consumers are not misled with
regard to the quantity of spirits in the bottle. Over the years,
alcohol beverage producers have greatly increased the number of brands
and packages in the marketplace. TTB believes that if a product is
bottled in a container that conforms to a standard of fill and is
clearly marked with the net contents, the consumer is provided with
sufficient information as to the amount of spirits in the bottle.
Currently, Sec. 5.46(b) imposes a headspace requirement that
applies to standard liquor bottles, and Sec. 5.46(c) provides design
requirements for standard liquor bottles. Pursuant to Sec. 5.46(d),
distinctive liquor bottles may be exempted from these requirements. A
bottler or importer who intends to use a distinctive liquor bottle is
currently required to apply for and obtain authorization for such use.
Proposed Sec. 5.202 incorporates these provision without substantive
change.
TTB seeks comments on whether it should eliminate the current
headspace and certain design requirements. TTB believes that
eliminating the application requirement for distinctive liquor bottles
would create efficiencies for both TTB and industry members by reducing
application and review requirements. However, TTB is specifically
interested in comments regarding any deleterious effect that
eliminating the requirement might have on consumers.
E. Proposed Changes Specific to 27 CFR Part 7 (Malt Beverages)
In addition to the changes discussed above that apply to all
commodities, TTB is proposing additional editorial and substantive
changes specific to the malt beverage labeling regulations in 27 CFR
part 7. This section will not repeat the changes already discussed in
section II B of this preamble. Accordingly, if a proposed change is not
discussed in this section, please consult section II B. The substantive
changes that are unique to part 7 are described below, by subpart.
1. Subpart A--General Provisions
Proposed subpart A includes several sections that have general
applicability to part 7, including a revised definitions section, a
section that defines the territorial extent of the regulations,
sections that set forth to whom and which products the regulations in
part 7 apply, a section that identifies other regulations that relate
to part 7, and sections addressing administrative items such as forms
and delegations of the Administrator.
a. Definitions. Proposed Sec. 7.1, which covers definitions of
terms used in part 7, is largely consistent with the current regulatory
text that appears in Sec. 7.10, with some amendments in addition to
those discussed in section II B of this preamble (relating to parts 4,
5 and 7).
The proposed text adds definitions for the terms ``keg collar'' and
``tap cover'' consistent with a proposed amendment, discussed later in
this document, to allow mandatory label information to appear on keg
collars and tap covers, subject to certain conditions. The proposed
text amends the definition of the term ``bottler'' and removes the
definition of ``packer,'' consistent with proposed amendments that
would remove any distinction in name and address statements between
``bottling'' in containers of a capacity of one gallon or less and
``packing'' in containers in excess of one gallon.
The proposed text retains the current definition of ``malt
beverage,'' which is based on the statutory definition set forth in the
FAA Act at 27 U.S.C. 211(a)(7), and updates the cross reference to
standards applying to the use of processing methods and flavors.
Prior to the issuance of TTB Ruling 2008-3, TTB and its predecessor
agency had provided guidance on the minimum quantities of malted barley
and hops required to be used in the production of malt beverages. In
1994, the Bureau of Alcohol, Tobacco and Firearms (ATF) issued ATF
Compliance Matters 94-1, which provided that beers fermented from at
least 25 percent malted barley (calculated as the percentage of malt,
by weight, compared to the total dry weight of all ingredients
contributing fermentable extract to the base product) and made with at
least 7\1/2\ pounds of hops (or the equivalent thereof in hop extracts
or hop oils) per 100 barrels were ``malt beverages'' under the FAA Act.
In TTB Ruling 2008-3, TTB announced that it was reconsidering this
prior guidance, based on the fact that neither the FAA Act nor the
implementing regulations in 27 CFR part 7 prescribed minimum standards
for the amount of malted barley used in production of a malt beverage.
The ruling also noted that TTB had determined that a beer containing a
much lower amount of malted barley (one percent of the total dry weight
of all ingredients contributing fermentable extract to the product)
conformed to the definition of a ``malt beverage.'' The ruling stated
that brewers and importers
[[Page 60600]]
should contact TTB's Advertising, Labeling, and Formulation Division
with questions as to whether a particular product falls within the
definition of a ``malt beverage'' and therefore is subject to the COLA
and other requirements of the FAA Act.
In this rulemaking document, TTB is not proposing to set forth any
minimum standards for the quantity of malted barley or hops used in the
production of malt beverages. TTB solicits comments from all interested
parties on whether the regulations in part 7 should address this issue.
b. Prohibitions and jurisdictional limits of the FAA Act. Proposed
Sec. 7.3, which sets forth the general requirements and prohibitions
under 27 U.S.C. 205(e), repeats the essential elements of the
prohibitions found in current Sec. 7.20 and the misbranding provisions
found in current Sec. 7.21. Because the term ``misbranding'' is not
used consistently in current part 7, proposed Sec. 7.3 would replace
that term with the requirement that malt beverage containers be labeled
in accordance with the regulations in part 7.
Proposed Sec. 7.4 sets forth the jurisdictional limits found in 27
U.S.C. 205. As referenced earlier, the first prohibition in 27 U.S.C.
205(e) applies to any persons engaged in business as a brewer, an
importer, or a wholesaler of malt beverages, and it prohibits the sale
or shipment or delivery for sale or shipment, or other introduction in
interstate or foreign commerce, or receipt therein, or removal from
customs custody for consumption, of any malt beverages in bottles,
unless such products are bottled, packaged, and labeled in conformity
with regulations issued by the Secretary of the Treasury with respect
to the packaging, marking, branding, labeling, and size and fill of
container. The penultimate paragraph of 27 U.S.C. 205 further limits
this application, by providing that the provisions of section 205(e)
``shall apply to the labeling of malt beverages sold or shipped or
delivered for shipment or otherwise introduced into or received in any
State from any place outside thereof * * * only to the extent that the
law of such State imposes similar requirements with respect to the
labeling * * * of malt beverages not sold or shipped or delivered for
shipment or otherwise introduced into or received in such State from
any place outside thereof.''
Consistent with the language of current Sec. 7.20(a) and (b),
proposed Sec. 7.4 sets out these jurisdictional limits. Paragraph
(a)(1) essentially restates the provisions of the penultimate paragraph
of 27 U.S.C. 205(f). Paragraph (a)(2) sets out the longstanding Bureau
interpretation of what is ``similar'' State law, by stating that if the
label in question does not violate the laws of the State or States into
which the malt beverages are being shipped, it does not violate part 7.
Finally, paragraph (a)(3) clarifies that the regulations in part 7 do
not apply to domestically bottled malt beverages that are not and will
not be sold or shipped, or delivered for sale or shipment, or otherwise
introduced in interstate or foreign commerce.
c. Ingredients and processes. Proposed Sec. 7.5 is derived from
current Sec. 7.11, and no substantive changes have been made. It
should be noted that the current regulation authorizes the use of
``flavors and other nonbeverage ingredients containing alcohol'' in the
production of malt beverages, subject to certain limitations. In the
proposed regulation, the word ``nonbeverage'' has been inserted in
front of the term ``flavors,'' simply to clarify that the regulation is
intended to authorize only the use of nonbeverage flavors containing
alcohol.
d. Brewery products that are not malt beverages. For the first
time, TTB is proposing to include regulations in part 7 that explicitly
refer readers to the regulations in part 4 for sak[eacute] and similar
products that meet the definition of ``wine'' under the FAA Act, and to
the FDA food labeling regulations for alcohol beverage products that do
not fall under the definition of malt beverages, wine, or distilled
spirits under the FAA Act. TTB receives many inquiries about such
products, and TTB believes that including this information in the
regulatory text will be helpful.
Consistent with the guidance found in TTB Ruling 2008-3, proposed
Sec. 7.6 is a new provision that clarifies that certain brewery
products are not subject to the labeling requirements of part 7 because
they do not fall under the definition of a ``malt beverage'' under the
FAA Act. As set forth in greater detail in the ruling, certain brewed
products that are classified as ``beer'' under the IRC definition in 26
U.S.C. 5052(a) do not fall within the definition of a ``malt beverage''
in the FAA Act, as found in 27 U.S.C. 211(a)(7). The major differences
between the terms are set forth as follows in the ruling:
As indicated above, the definition of a ``beer'' under the IRC
differs from the definition of a ``malt beverage'' under the FAA Act
in several significant respects. First, the IRC does not require
beer to be fermented from malted barley; instead, a beer may be
brewed or produced from malt or ``from any substitute therefor.''
Second, the IRC does not require the use of hops in the production
of beer. Third, the definition of ``beer'' in the IRC provides that
the product must contain one-half of one percent or more of alcohol
by volume, whereas there is no minimum alcohol content for a ``malt
beverage'' under the FAA Act.
Accordingly, a fermented beverage that is brewed from a
substitute for malt (such as rice or corn) but without any malted
barley may constitute a ``beer'' under the IRC but does not fall
within the definition of a '' malt beverage'' under the FAA Act.
Similarly, a fermented beverage that is not brewed with hops may
fall within the IRC definition of ``beer'' but also falls outside of
the definition of a ``malt beverage'' under the FAA Act.
It should be noted that sak[eacute] and similar products are
included within the definition of ``beer'' under the IRC. See 26
U.S.C. 5052(a). However, sak[eacute] is also included within the
definition of a wine under the FAA Act, which, among other things,
covers only wines with an alcohol content of at least seven percent
alcohol by volume. See 27 U.S.C. 211(a)(6). Thus, sak[eacute] and
similar products with an alcohol content of at least seven percent
alcohol by volume are subject to the labeling and other requirements
of the FAA Act.
The ruling thus held that in cases where a brewery product (other than
sak[eacute] and similar products) failed to meet the definition of a
``malt beverage'' under the FAA Act, the product will be subject to
ingredient and other labeling requirements administered by the FDA.
2. Subpart B--Certificates of Label Approval
As mentioned previously, TTB is proposing to consolidate the
regulations related to applying for label approval in a revised subpart
B. In addition to the changes already discussed, TTB is proposing to
clarify the COLA requirements as they apply to brewers that are selling
their domestically bottled malt beverages exclusively in the State in
which the malt beverages were bottled. In TTB Ruling 2013-1, TTB issued
guidance on this issue. TTB now proposes to make the regulations more
clear and specific.
In proposed Sec. 7.21(a), the regulations set forth the general
requirement for a COLA. In proposed Sec. 7.21(b), the regulations
clarify that a COLA is required for malt beverages shipped into a State
from outside of the State only where the laws or regulations of the
State require that all malt beverages sold or otherwise disposed of in
such State be labeled in conformity with the requirements of subparts D
through I of part 7. This is consistent with the language in current
Sec. 7.40, with conforming changes to reflect the reorganization of
part 7. Proposed Sec. 7.21(b) goes on to explain that this requirement
applies where the State has either adopted subparts D through I in
their entirety or has adopted
[[Page 60601]]
requirements identical to those set forth in subparts D through I. This
is consistent with the longstanding policy of TTB and its predecessor
agencies.
Consistent with longstanding policy, proposed Sec. 7.21(b) also
notes that malt beverages that are not subject to the COLA requirements
of current Sec. 7.21 may still be subject to the substantive labeling
provisions of subparts D through I, to the extent that the State into
which the malt beverages are being shipped has similar State law or
regulations. This is because a State may have certain State laws or
regulations that are similar to the labeling regulations in part 7, but
are not identical. In such a case, while the COLA requirement would not
apply to malt beverages in containers that are shipped into that State,
the substantive labeling provisions may apply to the extent that the
state in question has similar state law.
As noted earlier, the FAA Act requires any brewer or wholesaler who
bottles malt beverages to obtain a COLA prior to bottling. The FAA Act
then goes on to state that malt beverages, like wines and distilled
spirits, are exempt from the COLA requirements if, upon application to
the Secretary, the bottler shows that the malt beverages to be bottled
by the applicant are not to be sold, or offered for sale, or shipped or
delivered for shipment, or otherwise introduced, in interstate or
foreign commerce. TTB's predecessor agencies implemented this exemption
for distilled spirits and wines by allowing for the issuance of a
certificate of exemption for these products. However, with respect to
malt beverages, the regulations did not require a COLA for products
that were not to be entered in interstate commerce.
Prior to the issuance of TTB Ruling 2013-1, TTB received several
inquiries from brewers who were not sure how the COLA requirements
applied to their products. Accordingly, proposed Sec. 7.21(c)
specifically clarifies that persons bottling malt beverages that will
not be shipped, or delivered for sale or shipment, in interstate or
foreign commerce, are not required to obtain a COLA or a certificate of
exemption from label approval, along with a note explaining what a
certificate of exemption from label approval is.
The proposed regulations are thus consistent with current
regulations in that they do not require a certificate of exemption for
malt beverages that will not be shipped or otherwise introduced in
interstate or foreign commerce. TTB believes that this is consistent
with its overall goal of minimizing burdens on industry members.
However, TTB recognizes that sometimes intrastate brewers need some
type of certificate from TTB in order to satisfy State requirements. We
solicit comments on whether the issuance of a certificate of exemption
in such circumstances (for products that will not be sold outside of
the State of the bottling brewery) would be useful, and whether the
regulations should allow a certificate of exemption for such products.
3. Subpart D--Label Standards
Proposed subpart D contains regulations that govern the placement
and other requirements applicable to mandatory information and
additional information on labels and containers. As previously
mentioned, TTB is proposing a new regulation for keg labels. Proposed
Sec. 7.51(a) provides, consistent with current regulations, that any
label that is not an integral part of the container must be affixed to
the container in such a way that it cannot be removed without thorough
application of water or other solvents. However, proposed Sec. 7.51(b)
provides that a label on a keg with a capacity of 10 gallons or more
that is in the form of a keg collar or a tap cover is not required to
be firmly affixed, provided that the name of the brewer of the malt
beverage is permanently or semi-permanently stated on the keg in the
form of embossing, engraving, or stamping, or through the use of a
sticker or ink jet method.
Brewers have asked for such an exception, asserting that the
current requirement for firmly affixed labels is unduly burdensome when
it comes to kegs. Because kegs are intended to be reused, brewers have
argued that it takes considerable time and effort to scrape off the
label each time a keg is to be reused. For this reason, brewers have
requested permission to use a keg collar that is not firmly affixed to
the keg, or a tap cover, to bear mandatory labeling information.
TTB believes that additional flexibility can be afforded with
regard to the labeling of kegs without sacrificing consumer protection.
For this reason, the proposed rule requires the name of the brewer to
be permanently or semi-permanently stated on the keg in the form of
embossing, engraving, or stamping, or through the use of a sticker or
ink jet method. TTB notes that its IRC-based regulations in current 27
CFR 25.141 already require the name of the brewer to be permanently
marked on each barrel or keg. TTB also notes that the proposed
regulatory text specifically states that this exemption in no way
affects the requirements in 27 CFR part 16 regarding the mandatory
health warning statement, which would not be permitted to appear on a
tap cover or on a keg collar that was not firmly affixed to the keg.
TTB seeks comments from the public on whether the proposed rule would
reduce burdens on brewers, and whether it could create any consumer
protection issues.
4. Subpart E--Mandatory Label Information
a. Brand labels. Current Sec. 7.22 requires that certain mandatory
information appear on the brand label of a malt beverage, while other
mandatory information, and any additional information, may appear on a
label anywhere on the container. The brand label is defined in current
Sec. 7.10 as ``[t]he label carrying, in the usual distinctive design,
the brand name of the malt beverage'' and, under current Sec. 7.22,
the brand name, class, name and address, net contents (except when
blown, branded, or burned, on the container), and alcohol content (when
required for certain malt beverages produced with flavors or other
nonbeverage ingredients containing alcohol) are required to appear on
the brand label.
In practice, however, a brand label may be a label that wraps
entirely around a can or bottle. As a result, mandatory information may
appear anywhere on certain cans or bottles. Such cans and bottles are
common containers of malt beverages. Furthermore, if the label bearing
the brand name is on the back of the container, then it is the brand
label.
TTB believes that the current regulations requiring that certain
mandatory information be placed on the brand label of malt beverage
containers are unduly restrictive. Furthermore, the prevalence of
wraparound labels significantly reduces the consumer protection
otherwise provided by this rule. Finally, TTB believes that consumers
are used to looking at the back and neck labels to find mandatory
information on containers.
Accordingly, TTB is proposing, in proposed Sec. 7.63, to amend the
regulations to allow mandatory information to appear on any label on
the malt beverage container.
b. Alcohol content. As previously noted, the FAA Act, which was
enacted in 1935, prohibited alcohol content statements on malt beverage
labels unless required by State law. See 27 U.S.C. 205(e)(2). That
prohibition was overturned in 1995 by the U.S. Supreme Court in Rubin
v. Coors Brewing Company, 514 U.S. 476 (1995).
Prior to the Supreme Court's decision in Coors, the malt beverage
regulations
[[Page 60602]]
in Sec. 7.26 reflected the statutory prohibition against alcohol
content statements. After a ruling by the United States District Court
for the District of Colorado in the Coors litigation, TTB's predecessor
agency, ATF, issued an interim rule indefinitely suspending those
regulations as of April 19, 1993. See T.D. ATF-339 (58 FR 21232, April
19, 1993). That interim rule also implemented new alcohol content
regulations by adding current Sec. 7.71, which allows alcohol content
statements unless prohibited by State law. When the alcohol content is
stated, and the manner of the statement is not required under State
law, the provisions of current Sec. 7.71 prescribe how the alcohol
content may be stated. The 1993 regulations were issued as an interim
rule and they have not been finalized.
In 2005, in T.D. TTB-21 (70 FR 194, January 3, 2005), TTB issued a
final rule requiring alcohol content statements for those malt
beverages that contain alcohol derived from added flavors or other
added nonbeverage ingredients (other than hops extract) containing
alcohol. TTB is retaining this provision in the proposed regulations,
and TTB is proposing to finalize the interim alcohol content
regulations in this rulemaking. In this proposed rule, current Sec.
7.26 is removed, and the provisions of current Sec. 7.71 are
incorporated in proposed Sec. 7.65 with some editorial changes for
clarity, including a list of the acceptable ways to present an alcohol
content statement on a label. Also, several substantive changes are
proposed, as set forth below.
Proposed Sec. 7.65(b)(1) specifically provides that statements
other than a percentage of alcohol by volume, such as statements of
alcohol by weight, may appear on the label if they are truthful,
accurate, and specific factual representations of alcohol content, and
if they appear together with, and as part of, the statement of alcohol
content as a percentage of alcohol by volume. Among other things, this
proposal is consistent with the policy adopted in TTB Ruling 2013-2, in
which TTB allowed the use of voluntary Serving Facts statements on
labels and in advertisements. A Serving Facts statement includes
nutrient information and may, on an optional basis, also include
alcohol content information. In the ruling, TTB held that if alcohol
content is expressed as a percentage of alcohol by volume, the Serving
Facts statement may also include a statement of the fluid ounces of
pure ethyl alcohol per serving (rounded to the nearest tenth) as part
of the alcohol by volume statement.
With regard to statements of alcohol content by weight, some States
require alcohol content statements to be expressed in this form. The
regulations have always allowed alcohol content statements to be made
in accordance with State requirements, and will continue to do so.
However, some brewers would like to put alcohol content as both a
percentage of alcohol by volume and as a percentage of alcohol by
weight on labels of products sold in all States, so that they can use
the same label in the States that require alcohol content as a
percentage of alcohol by weight and in other States that neither
require nor prohibit alcohol content statements as a percentage of
alcohol by weight.
TTB is proposing to allow this, but it solicits comments on whether
allowing this information on labels would be confusing to consumers, or
whether it would provide consumers with useful additional information.
In particular, TTB seeks comments on whether permitting both formats on
labels might confuse consumers as to the meaning of the different ways
of expressing alcohol content. If so, does requiring the statements to
appear together, as part of the same alcohol content statement, negate
any potential confusion?
In addition, in proposed Sec. 7.65(c), TTB proposes to expand the
tolerance for alcohol content on malt beverage labels. Currently, for
most malt beverages, the regulations allow a tolerance of 0.3
percentage points above or below the labeled alcohol content. TTB
proposes to expand this tolerance to one percentage point above or
below the labeled alcohol content. Some brewers, especially small
brewers, have avoided putting an optional alcohol content statement on
malt beverage labels because they have difficulty maintaining a precise
alcohol content from batch to batch. TTB believes that increasing the
tolerance level will encourage more brewers to include this important
information on labels. Furthermore, TTB does not believe that a one
percentage point variation from the labeled alcohol content will
significantly impact consumers. We note that the wine regulations
allow, with certain exceptions, tolerances of one percentage point for
wines above 14 percent alcohol by volume and 1.5 percentage points for
wines with an alcohol content of no more than 14 percent alcohol by
volume.
Exceptions to the tolerance are maintained without change. For
example, if a malt beverage label states that the beverage has an
alcohol content above 0.5 percent, the actual content may not be below
0.5 percent, regardless of any tolerance that would otherwise be
allowed.
Finally, this document does not propose to make alcohol content
statements on malt beverage labels mandatory. In Notice No. 73 (72 FR
41860, July 31, 2007) TTB proposed requiring alcohol content statements
for all malt beverage labels, but no final rule on that issue has been
published. TTB is not proposing to address mandatory alcohol content
statements for malt beverage containers in this rulemaking; TTB will
address that issue in a separate rulemaking procedure.
c. Name and place where bottled on labels of domestically bottled
malt beverages. The name and place where bottled informs the consumer
as to who bottled the malt beverage, and where the bottling took place
or where the bottler's principal place of business is. Proposed Sec.
7.66 is derived from current Sec. 7.25(a) and (c) and prescribes how
the name and place where malt beverages are bottled must appear on
containers of domestically bottled malt beverages. The proposed
regulations differ from the current regulations in a few key ways.
First, the proposed regulations reflect agency policy stated in the
Beverage Alcohol Manual for Malt Beverages (TTB P 5130.3), that a
listing of all the brewer's locations may be provided on a label under
certain conditions. This language is also consistent with labeling
requirements for beer under TTB's IRC-based regulations in 27 CFR
25.142.
Second, the proposed regulations provide more guidance with regard
to what is required when malt beverages are brewed and bottled for
another person. For example, the proposed regulations provide that, if
the same brand of malt beverages is brewed and bottled by two breweries
that are not of the same ownership, the label for each brewery may set
forth both locations where bottling takes place, as long as the label
uses the actual locations (and not the principal place of business) and
as long as the nature of the agreement is clearly set forth. Examples
are provided in the regulatory text.
Third, the proposed regulations provide that the place of bottling
and the address of the principal place of business of a brewer must be
consistent with the city and State of the address reflected on the
brewers notice. This change reflects TTB's current policy as stated in
the Beverage Alcohol Manual.
d. Net contents. The current regulations allow for the use of U.S.
standard measures but do not address whether metric contents may also
be displayed. However, it is current TTB policy to allow net contents
to be expressed in both formats. Proposed
[[Page 60603]]
Sec. 7.70 allows for the statement of net contents of metric
measurements in addition to, but not in lieu of, the U.S. standard
measures.
5. Subpart F--Restricted Labeling Statements; Use of the Term ``Draft''
The proposed regulations also address the use of the term ``draft''
on malt beverage labels. Longstanding Bureau policy is set forth in
Industry Circular 65-1, which sets out standards for the use of the
word ``draft'' on malt beverage labels. Proposed Sec. 7.87 reflects
this policy and provides that any malt beverage in a container of one
gallon or more that dispenses through a tap, spigot, faucet, or similar
device may be described as ``draft.'' Malt beverages packaged in
customary bottles and cans may also be described as ``draft'' if they
are unpasteurized and require refrigeration for preservation, or if the
unpasteurized beverage has been sterile filtered and aseptically
filled. Finally, the ruling provides that malt beverages packaged in
customary bottles or cans that have been pasteurized may be described
as ``draft brewed'', ``draft beer flavor'', ``old time on tap taste''
or with another similar phrase, only if the word ``pasteurized''
appears on the label.
As a matter of internal policy, TTB started to approve certain
labels of pasteurized malt beverages using the term ``draft'' standing
alone, if the word ``pasteurized'' also appears on the label. TTB is
soliciting comments on whether this practice is misleading and should
be changed. TTB is interested in comments specifically on whether it
should continue to allow the use of any such terms on labels of
pasteurized malt beverages. Please let TTB know if a change in these
policies would impact existing labels.
6. Subpart H--Labeling Practices That Are Prohibited if They Are
Misleading
a. Use of the term ``bonded.'' One currently prohibited practice is
the use on malt beverage labels of the term ``bonded'' or similar terms
that may imply governmental supervision over the production, bottling,
or packing of the product. TTB believes that this implication (that
such terms imply governmental supervision) is related to the use of
those terms with regard to distilled spirits, and that such terms were
historically prohibited because their use on malt beverage labels would
mislead consumers by causing them to believe that the malt beverage was
actually a distilled spirit. The text, at proposed Sec. 7.131, does
not differ from the text currently prohibiting such terms (in Sec.
7.29(c)). However, TTB is requesting comments on whether such terms are
likely to mislead consumers into believing a product was made under
governmental supervision or into believing a malt beverage is a
distilled spirit, and, as a result, whether TTB should continue to
prohibit their use on malt beverage labels.
b. Strength claims. As previously mentioned, the FAA Act prohibits
both statements of alcohol content and statements likely to be
considered as statements of alcohol content from appearing on malt
beverage labels, unless required by State law. See 27 U.S.C. 205(e)(2).
Current Sec. Sec. 7.29(f) and 7.29(g) both implement the statutory ban
on statements that are likely to be considered statements of alcohol
content on malt beverage labels. Current Sec. 7.29(f) prohibits the
use of the words ``strong,'' ``full strength,'' ``extra strength,''
``high test,'' ``high proof,'' ``pre-war strength,'' ``full oldtime
alcoholic strength,'' and similar words or statements that are likely
to be considered as statements of alcohol content on labels of malt
beverages. The proposed rule modernizes the language of these
provisions by removing some terms (such as ``pre-war strength'' and
``full oldtime alcoholic strength'') that are not likely to be used by
today's brewers.
7. Subpart I--Classes and Types of Malt Beverages
Part 7 does not prescribe standards of identity for malt beverages.
Instead, current Sec. 7.24(a) provides that statements of class and
type for malt beverages shall conform to the designation of the product
as known to the trade. If the product is not known to the trade under a
particular designation, a distinctive or fanciful name, together with
an adequate and truthful statement of composition of the product, shall
be stated, and such statement is treated as a statement of class and
type for purposes of part 7.
Current Section 7.24(d) states that no product containing less than
one-half of one percent alcohol by volume shall bear the class
designation ``beer,'' ``lager beer,'' ``lager,'' ``ale,'' ``porter,''
or ``stout.'' Further, current Sec. 7.24(e) provides that no product
other than a malt beverage fermented at comparatively high temperature,
possessing the characteristics generally attributed to ``ale,''
``porter,'' or ``stout'' and produced without the use of coloring or
flavoring materials (other than those recognized in standard practices)
shall bear any of those class designations.
In 1993, ATF, TTB's predecessor agency, sought comments on
standards of identity for malt beverages, in particular malt liquors,
in an advance notice of proposed rulemaking. See Notice No. 771 (58 FR.
21126, April 19, 1993). However, the regulations were not amended to
include such standards. In Notice No. 771, ATF stated that its
predecessor agency, the Federal Alcohol Administration (FAA), issued
proposed regulations regarding standards of identity for malt beverages
in 1935, but noted that there were differences of opinion in the
brewing industry regarding the standards and definitions for certain
designations. The FAA issued regulations in 1936 providing that
products containing less than 5 percent alcohol by volume could not be
designated as ale, porter, or stout. See Regulations No. 7, section 24
(1 FR 2013, November 21, 1936). The regulations were premised, in part,
on the public perception that ale, porter, and stout were higher in
alcohol content than beer. After more hearings, the FAA amended the
regulations in 1938 to eliminate the list of classes and the minimum
alcohol content requirements for ale, porter, and stout.
TTB does not propose now to include specific standards of identity.
Proposed Sec. 7.141 is derived from 27 CFR 7.24(a) and sets out
standards for class and type designations on malt beverages. This
section explains that the class of the malt beverage must be stated on
the label. The type may optionally be stated. Statements of class and
type must conform to the designation of the product as known to the
trade. If the product is not known to the trade, the product must
contain a distinctive or fanciful name as well as a statement of
composition.
Proposed Sec. 7.141 differs from the current regulations in that
it proposes to define a ``malt beverage specialty'' as a malt beverage
that does not fall under any of the class designations set forth in
part 7 and is not known to the trade under a particular designation,
usually because of the addition of ingredients such as colorings,
flavorings, or food materials, or the use of certain types of
production processes. Such beverages will not be designated as ``malt
beverage specialties'' on the label, but the term reflects current
usage and is a convenient way to refer to such products in the
regulations.
Proposed Sec. 7.142 sets out class designations. Any malt beverage
may be designated simply as a ``malt beverage.'' The designations
``beer'', ``ale'', ``porter'', ``stout'', ``lager'', and ``malt
liquor'' may be used to designate malt beverages that contain at least
0.5 percent alcohol by volume and that conform to the trade's
understanding of those designations. TTB proposes to
[[Page 60604]]
allow these designations to be preceded or followed by descriptions of
the color of the product (such as brown, red, or golden).
Proposed Sec. 7.143 is largely consistent with existing
regulations on class and type designations. There are new proposed
provisions for ``ice beer,'' ``wheat beer,'' ``rye beer,'' and ``barley
wine ale,'' consistent with existing TTB policy.
The proposed regulations in proposed Sec. Sec. 7.143(h) and 7.144
reflect changes adopted in TTB Ruling 2014-4 with respect to the
labeling of malt beverage products fermented or flavored with honey,
certain fruits, and certain spices. Prior to the issuance of this
ruling, the Brewers Association, a trade association representing small
brewers, petitioned TTB to exempt certain malt beverages from the
formula requirements under part 25, and to liberalize the labeling
rules applicable to these products. The Brewers Association stated that
``[W]ell-known and widely-distributed products such as fruit beers and
spiced beers'' were ``well known to the trade and consumers by their
flavor designations: e.g., fruit beers, spiced ales, honey porters, and
so forth. Required statements of composition such as `ale brewed with
raspberry juice' or `porter brewed with honey' simply are unnecessary,
clutter labels, and provide no more information to the consumer than
the readily-understood designations of `raspberry ale' or 'honey
porter.' ''
The petition also suggested that TTB abandon the distinction
between fruit beers made with added fruits or juices and those
fermented with such substances, but, instead, should allow brewers to
make this distinction on their labels if they wish.
In TTB Ruling 2014-4, TTB adopted these changes for certain malt
beverages designated in accordance with trade understanding. We are now
proposing to codify these standards in the regulations. TTB seeks
comments on whether additional ingredients should be recognized as
traditional ingredients in the production of a fermented beverage
designated as ``beer,'' ``ale,'' ``porter'', ``stout,'' ``lager,'' or
``malt liquor.''
The TTB regulations also provide for special rules for certain
classes and types; these are currently found in Sec. 7.24(b) through
(e). TTB proposes, in Sec. Sec. 7.143 and 7.144, to incorporate and
partially supersede Ruling 94-3, which held that ice beer is not
considered concentrated when it is produced by removing less than 0.5
percent of the volume of the beer in the form of ice crystals and
retains beer characteristics. TTB also proposes to incorporate and
supersede Ruling 76-13, which sets forth standards for cereal
beverages, which are malt beverages that contain less than 0.5 percent
alcohol by volume, and confirms that such beverages fall under the
authority of the FAA Act.
Proposed Sec. 7.146 sets forth the requirements for geographical
names currently found in section 27 CFR 7.24(f) through (h) with
clarifying changes. TTB proposes to clarify that distinctive names may
be used in addition to, but not in lieu of a class designation. For
example, Vienna Beer or Bavarian Stout may appear as designations.
Malt beverages that are not ``known to the trade'' are required to
be labeled with a statement of composition. Proposed Sec. 7.147 sets
forth provisions for statements of composition on malt beverages. These
provisions are new to the regulations and reflect current policy.
Specifically, a statement of composition is required to appear on the
label for malt beverage specialty products, as defined in proposed
Sec. 7.141(b), which are not known to the trade under a particular
designation. For example, the addition of flavoring materials, colors,
or artificial sweeteners may change the class and type of the malt
beverage. The statement of composition along with a distinctive or
fanciful name serves as the class and type designation for these
products.
F. Proposed 27 CFR Part 14 (Advertising)
Currently the regulatory provisions that address the advertising of
wine, distilled spirits, and malt beverages are set forth in parts 4,
5, and 7, respectively. As noted above, TTB proposes to add a new 27
CFR part 14, Advertising of Wine, Distilled Spirits, and Malt
Beverages, to consolidate these provisions into one part. In general,
the advertising regulations require that advertisements, like labels,
are truthful, accurate, and not misleading. Where possible, TTB seeks
to treat advertisements for wine, distilled spirits, and malt beverages
consistently. TTB proposes to delete the advertisement regulations for
wine, distilled and malt beverages from parts 4, 5, and 7,
respectively, and consolidate them into the new part 14. Additionally,
the proposed regulations are updated for clarity and to reflect changes
in prohibited practices that mirror those proposed in the labeling
regulations, where appropriate.
In the definitions section for part 14, TTB proposes to include
several definitions that apply to advertising that currently appear in
parts 4, 5, and 7, and to add definitions for ``consumer specialty
item,'' and ``responsible advertiser.'' TTB also proposes to amend the
definition of ``advertisement'' that is currently found in Sec. Sec.
4.61, 5.62, and 7.51. Certain statements on container coverings,
cartons, cases, carriers, or other packaging have traditionally been
treated as advertising materials. As discussed in section II B of this
preamble, TTB proposes to amend the labeling regulations, in proposed
Sec. Sec. 4.62, 5.62, and 7.62, to clarify that certain information
must appear on packaging materials. These items would not be considered
advertisements. However, items such as hang tags that accompany the
bottle would continue to be considered advertisements and would be
subject to the rules in part 14.
In proposed Sec. 14.4, TTB sets forth the general requirement that
advertisements must be in conformity with the TTB regulations found in
part 14. TTB proposes to add a substantiation requirement to the
regulation that mirrors the substantiation requirement for claims made
on labels. Accordingly, industry members will be required to
substantiate any claim made on an advertisement and a claim that cannot
be adequately substantiated will be considered misleading. TTB also
proposes to require that the responsible advertiser provide
substantiation upon request for a period of five years from the time
the advertisement was disseminated or published.
Certain information is required to appear on alcohol beverage
advertisements. Specifically, the responsible advertiser's name and
contact information must appear on the advertisement. Currently, the
regulations require the name and address to appear on the
advertisement. TTB proposes to liberalize that requirement so that any
type of contact information may be used, such as a telephone number,
website, or email address. Additionally, the class, class and type, or
other designation for the product advertised must appear on the
advertisement. The mandatory statements are prescribed in the proposed
Sec. 14.6.
In the current and proposed regulations, if an advertisement refers
to a general alcohol beverage product line, the only information
required is the name and address (or contact information, in the
proposed rule) of the responsible advertiser. In some cases, TTB finds
that a ``product line'' contains only two types of products, and it
also finds administrative difficulty when enforcing the mandatory
statements requirements on internet sites. TTB
[[Page 60605]]
seeks comments on whether TTB should modify this requirement and, if it
does, how the public might be better informed when an internet site or
other advertisement refers to more than one type of product.
The prohibited practices for advertisements contain a number of
rules and prohibitions that conform to the rules for labels found in
parts 4, 5, and 7. Generally, a statement or representation that is
prohibited from appearing on a label is also prohibited from appearing
on an advertisement. TTB proposes to set forth the rules that apply to
alcohol beverage advertisements in subpart A. Sections 14.11 through
14.14 set forth the rules that apply to all alcohol beverage products.
These are organized into sections that include related topics, in a
similar organization to rules in parts 4, 5, and 7: Restricted
practices, prohibited practices, and misleading statements or
representations.
TTB proposes, in Sec. 14.14(f) to prohibit statements or
representations that create an impression that a product is a different
commodity. For example, a malt beverage advertisement could not have a
representation that leads the viewer to believe that the product is
wine. This prohibition is similar to that proposed in the labeling
regulations in parts 4, 5, and 7. As noted above, TTB is not proposing
substantive changes to the rules on health-related statements on
labels, and TTB similarly does not propose changes for such statements
on advertisements at this time.
Sections 14.15, 14.16, and 14.17 set forth the rules specific to
advertisements for wine, distilled spirits, and malt beverages,
respectively. In Sec. 14.16, TTB proposes to incorporate the modified
rules for the use of ``double distilled,'' ``triple distilled,'' and
similar terms, to conform to the updated rules for using the terms on
labels of distilled spirits, as described above. TTB also proposes, in
Sec. 14.17, to update the rules on strength claims on malt beverages,
so that strength claims are only prohibited if the claims imply that
products should be purchased on the basis of alcohol strength.
Consistent with current policy, TTB proposes to remove the existing
restrictions on alcohol content statements in advertisements for wine
and malt beverages, in light of the Supreme Court's decision in Coors,
which was discussed earlier in this document. Although the Coors
decision related to labels, not advertisements, TTB does not believe
that the advertising regulations should prohibit truthful, specific and
numerical claims about the alcohol content of those products.
In subpart C, TTB proposes to include references to various
provisions of the FAA Act. Proposed Sec. 14.21 states that a violation
of the advertising provisions of 27 U.S.C. 205(e) is punishable as a
misdemeanor and refers readers to 27 U.S.C. 207 for the statutory
provisions relating to criminal penalties, consent decrees, and
injunctions. Proposed Sec. 14.22 provides that basic permits are
conditioned upon compliance with the provisions of 27 U.S.C. 205,
including the advertising provisions of part 14, and that a willful
violation of the conditions of a basic permit provides grounds for the
revocation or suspension of the permit, as applicable, as set forth in
27 CFR part 1. Proposed Sec. 14.23 sets forth TTB's authority to
compromise liability for a violation of 27 U.S.C. 205 upon payment of a
sum not in excess of $500 for each offense. This sum is to be collected
by the appropriate TTB officer and deposited into the Treasury as
miscellaneous receipts.
By proposing to place these provisions in the regulations, TTB is
making it easier for a person to locate the penalties for violating the
FAA Act and the regulations implementing the FAA Act. These proposed
regulations will not change the criminal penalty and compromise
provisions, which are set forth in the statute.
The Office of Management and Budget (OMB) assigns control numbers
to TTB's information collection requirements. In subpart D, TTB
proposes to list those sections that impose an information collection
requirement along with the assigned OMB control number. TTB believes
that industry members will have an easier time locating OMB control
numbers for information collection requirements if they are listed in
one location.
G. Impact on Public Guidance Documents
The chart below describes the impact of this proposed rule on
rulings, industry circulars, and other public guidance documents issued
over the years by TTB and its various predecessor agencies. The
following public guidance documents will be superseded by the
publication of a final rule:
----------------------------------------------------------------------------------------------------------------
Document No. Subject Incorporated into proposed sections at:
----------------------------------------------------------------------------------------------------------------
Cross Cutting
----------------------------------------------------------------------------------------------------------------
Industry Circular 1963-23.................... Use of Disparaging Not incorporated.
Themes or References
in Alcoholic Beverage
Advertising is
Prohibited.
TTB Guidance 2011-5.......................... Personalized Labels.... Sec. Sec. 4.29, 5.29, and 7.29.
TTB Ruling 2012-3............................ Recognition of Andong Sec. Sec. 4.148 and 5.154.
Soju and Gyeongju
Beopju as Distinctive
Products of Korea.
----------------------------------------------------------------------------------------------------------------
Wine
----------------------------------------------------------------------------------------------------------------
Revenue Ruling 54-250........................ Vintage Date........... Sec. 4.95.
Revenue Ruling 54-418........................ Aperitif Wine.......... Sec. 4.147.
Revenue Ruling 55-618........................ Wine Labels............ Not incorporated.
Revenue Ruling 71-535........................ Labels on Imported Sec. 4.68.
Alcohol Beverages.
ATF Ruling 73-5.............................. Spanish Wines Labeled Sec. 4.174.
with Semi-generic
Designations.
ATF Ruling 73-6.............................. Spanish Wines Labeled Not incorporated.
with Grape Type
Designations.
ATF Ruling 78-4.............................. Use of Descriptive Sec. 4.94.
Terms on Wine Labels.
ATF Ruling 82-4.............................. Use of Descriptive Sec. 4.94.
Terms on Wine Labels.
ATF Ruling 85-14............................. Labeling of Wine Not incorporated.
Bearing Generic or
Semi-generic
Designation.
ATF Ruling 91-1.............................. Multistate Appellations Sec. 4.90.
of Origin for
Contiguous States.
ATF Ruling 2002-7............................ Wine made from grapes Sec. 4.94.
frozen after harvest
may not be labeled
with the term ``ice
wine'' or any
variation thereof, and
if the wine is labeled
to suggest it was made
from frozen grapes,
the label must be
qualified to show that
the grapes were frozen
post-harvest.
[[Page 60606]]
TTB Ruling 2008-1............................ Standards of Identity Sec. 4.174.
and the Use of Semi-
generic Designations
and Retsina on Certain
European Wines
Imported into the
United States.
----------------------------------------------------------------------------------------------------------------
Distilled Spirits
----------------------------------------------------------------------------------------------------------------
Revenue Ruling 54-592........................ Relabeling Tax Paid Sec. 5.42.
Distilled Spirits.
Revenue Ruling 55-399........................ Straight Whiskey....... Not Incorporated.
Revenue Ruling 55-552........................ Grain Neutral Spirits Sec. 5.142.
Stored in Wood may not
be Labeled as Vodka.
Revenue Ruling 55-740........................ Neutral Spirits Sec. 5.142.
Subjected to Vodka
Process but Stored in
Reused Whiskey Barrels
may not be Designated
or Labeled as Vodka.
Revenue Ruling 56-98......................... Flavored Vodka......... Sec. 5.142.
Revenue Ruling 59-408........................ Addition of Caramel.... Sec. 5.156.
Revenue Ruling 61-15......................... Labeling of Scotch Sec. 5.90(b).
Whisky.
Revenue Ruling 61-25......................... Distilled Spirits Sec. Sec. 5.141 and 5.143.
Labeling.
Revenue Ruling 61-71......................... Use of the Word Sec. 5.150(a).
Straight in Labeling
and Advertising of
Liqueurs or Cordials.
Revenue Ruling 62-224........................ Relabeling by Wholesale Sec. 5.42.
Liquor Dealer.
Revenue Ruling 68-502........................ Light Whisky from Sec. 5.66(f)(3).
Kentucky.
Revenue Ruling 69-58......................... Age statements......... Not Incorporated.
Revenue Ruling 71-188........................ Whisky Classification Sec. 5.113.
as White.
Revenue Ruling 71-535........................ Labels on Imported Sec. 5.68.
Alcohol Beverages.
ATF Ruling 75-32............................. Labeling of Diluted Sec. 5.153.
Spirits.
ATF Ruling 76-3.............................. Labeling of Vodka Sec. 5.142.
Treated with Activated
Carbon as ``Charcoal
Filtered''.
ATF Ruling 79-9.............................. Distilled Spirits Sec. 5.67.
Labels.
ATF Ruling 88-1.............................. Alcohol Content on Sec. 5.44(b)(5).
Labels and in
Advertisements of
Distilled Spirits.
ATF Ruling 93-3.............................. Age Statements on Sec. 5.74(c).
Grappa Brandy.
ATF Ruling 94-5.............................. Geographical Names..... Sec. 5.143 and Sec. 5.145(c)(2)-(5).
ATF Ruling 97-1.............................. Use of a ``Trace Sec. 5.142.
Amount'' of Citric
Acid in the Production
of Vodka without
Changing its
Designation as Vodka.
ATF Ruling 2001-2............................ Country of Origin Sec. 5.69.
Statements on
Distilled Spirits
Labels.
Industry Circular 1971-7..................... Protection of Names of Sec. Sec. 5.143 and 5.145.
Bourbon Whiskey and
Certain French
Brandies.
Industry Circular 76-28...................... Production of New Not Incorporated.
Charred Barrels using
Used Heads.
Industry Circular 2007-5..................... Use of the Term Sec. 5.149.
Absinthe for Distilled
Spirits.
----------------------------------------------------------------------------------------------------------------
Malt Beverages
----------------------------------------------------------------------------------------------------------------
Revenue Ruling 54-513........................ Labeling and Not incorporated.
Advertising of Malt
Beverages.
Revenue Ruling 71-535........................ Labels on Imported Sec. 7.68.
Alcohol Beverages.
ATF Ruling 76-13............................. Malt Beverages of Less Sec. 7.145.
Than \1/2\ of 1%
Alcohol by Volume
Subject to FAA Act.
ATF Ruling 94-3 (superseded only with respect Ice Beer............... Sec. 7.143.
to the provisions related to part 7. The
part 25 provisions remain in effect.).
ATF Procedure 98-1........................... Labeling of Imported Sec. Sec. 7.67 and 7.69.
Malt Beverages Bottled
or Packed in the
United States, and
Labeling of Blends of
Imported and Domestic
Malt Beverages Bottled
or Packed in the
United States.
TTB Ruling 2008-3............................ Classification of Sec. 7.6.
Brewed Products.
TTB Ruling 2013-1............................ Malt Beverages Sold Sec. Sec. 7.4 and 7.21.
Exclusively in
Intrastate Commerce.
TTB Ruling 2015-1............................ Ingredients and Sec. Sec. 7.143 and 7.144.
Processes Used in the
Production of Beer Not
Subject to Formula
Requirements.
Industry Circular 1965-1..................... Use of the Term ``Draft Sec. 7.87.
Beer'' on Labels and
in Advertising of Beer.
----------------------------------------------------------------------------------------------------------------
III. Derivation Tables for Proposed Parts 4, 5, 7, and 14
------------------------------------------------------------------------
27 CFR Part 4
-------------------------------------------------------------------------
Are derived from current
Requirements in new section: section:
------------------------------------------------------------------------
4.0....................................... 4.1.
------------------------------------------------------------------------
Subpart A--General Provisions
------------------------------------------------------------------------
4.1....................................... 4.10.
4.2....................................... 4.2.
4.3....................................... 4.30(a) and New.
4.4....................................... Reserved.
4.5....................................... New.
4.6....................................... New.
4.7....................................... New.
4.8....................................... 4.80.
4.9....................................... New.
4.10...................................... 4.5.
4.11...................................... 4.3.
4.12...................................... 4.4.
------------------------------------------------------------------------
Subpart B--Certificates of Label Approval and Certificates of Exemption
of Label Approval
------------------------------------------------------------------------
4.21...................................... 4.50(a) and (b).
4.22...................................... New.
4.23...................................... 4.50(b).
4.24...................................... 4.40.
4.25...................................... New.
4.27...................................... 4.51.
4.28...................................... 4.38(h) and New.
4.29...................................... New.
4.30...................................... 4.45.
------------------------------------------------------------------------
Subpart C--Alteration of Labels, Relabeling, and Adding Information to
Containers
------------------------------------------------------------------------
4.41...................................... 4.30(b).
[[Page 60607]]
4.42...................................... 4.30(b).
4.43...................................... 4.30(b).
4.44...................................... 4.30(b) and New.
------------------------------------------------------------------------
Subpart D--Label Standards
------------------------------------------------------------------------
4.51...................................... 4.38(e).
4.52...................................... 4.38(a).
4.53...................................... 4.38(b).
4.54...................................... New.
4.55...................................... 4.38(c).
4.56...................................... 4.38(f).
------------------------------------------------------------------------
Subpart E--Mandatory Label Information
------------------------------------------------------------------------
4.61...................................... New.
4.62...................................... 4.38a and New.
4.63...................................... 4.32.
4.64...................................... 4.33; 4.39(i) and (j).
4.65...................................... 4.36.
4.66...................................... 4.35(a) and (c); New.
4.67...................................... 4.35(b) and (c).
4.68...................................... 4.35.
4.69...................................... New.
4.70...................................... 4.37.
------------------------------------------------------------------------
Subpart F--Restricted Labeling Statements
------------------------------------------------------------------------
4.81...................................... New.
4.82...................................... 4.32a.
4.83...................................... 4.32b.
4.84...................................... 4.101.
4.85...................................... New.
4.86...................................... 4.39(e)(2).
4.87...................................... 4.39(m).
4.88...................................... 4.25(a).
4.89...................................... 4.25(b).
4.90...................................... 4.25(c) and (d).
4.91...................................... 4.25(e).
4.92...................................... 4.26.
4.93...................................... New.
4.94...................................... New.
4.95...................................... 4.27.
4.96...................................... 4.25(a).
4.97...................................... 4.25(b).
4.98...................................... 4.25(c) and (d).
------------------------------------------------------------------------
Subpart G--Prohibited Labeling Practices
------------------------------------------------------------------------
4.101..................................... New.
4.102..................................... 4.39(a)(1).
4.103..................................... 4.39(a)(3).
4.104..................................... 4.39(a)(7).
------------------------------------------------------------------------
Subpart H--Labeling Practices That Are Prohibited if They Are Misleading
------------------------------------------------------------------------
4.121..................................... New.
4.122..................................... 4.39(a)(1).
4.123..................................... 4.39(a)(5).
4.124..................................... 4.39(a)(2).
4.125..................................... 4.39(a)(4).
4.126..................................... 4.39(g).
4.127..................................... 4.39(e).
4.128..................................... 4.39(a)(7).
4.129..................................... 4.39(h).
4.130..................................... 4.39(a)(6).
4.131..................................... 4.39(f).
4.132 Reserved............................ N/A.
4.133..................................... 4.39(a)(8).
4.134..................................... 4.39(b)-(d).
4.135..................................... 4.39(k).
4.136..................................... 4.39(n).
------------------------------------------------------------------------
Subpart I--The Standards of Identity for Wine
------------------------------------------------------------------------
4.141..................................... 4.20 and 4.34.
4.142..................................... 4.21(a).
4.143..................................... 4.21(b).
4.144..................................... 4.21(c).
4.145..................................... 4.21(d) and (e).
4.146..................................... 4.21(f).
4.147..................................... 4.21(g).
4.148..................................... (New).
4.149..................................... 4.21(i).
4.150..................................... 4.21(h).
4.151..................................... New.
4.152 & 4.153 Reserved.................... N/A.
4.154..................................... 4.22.
4.155 Reserved............................ N/A.
4.156..................................... 4.23.
4.157..................................... 4.28.
4.158-4.172 Reserved...................... N/A.
4.173..................................... 4.24(a).
4.174..................................... 4.24(b).
4.175..................................... 4.24(c)(1)-(c)(2).
------------------------------------------------------------------------
Subpart J--American Grape Variety Names
------------------------------------------------------------------------
4.191..................................... 4.93.
4.192..................................... 4.91.
4.193..................................... 4.92.
------------------------------------------------------------------------
Subpart K--Standards for Wine Containers and Authorized Container Sizes
------------------------------------------------------------------------
4.201..................................... 4.70.
4.202..................................... 4.71.
4.203..................................... 4.72.
4.204..................................... New.
------------------------------------------------------------------------
Subpart L--Recordkeeping and Substantiation Requirements
------------------------------------------------------------------------
4.211..................................... New.
4.212..................................... New.
------------------------------------------------------------------------
Subpart M--Penalties and Compromise of Liability
------------------------------------------------------------------------
4.221..................................... New.
4.222..................................... New.
4.224..................................... New.
------------------------------------------------------------------------
Subpart N--Paperwork Reduction Act
------------------------------------------------------------------------
4.231..................................... New.
------------------------------------------------------------------------
------------------------------------------------------------------------
27 CFR Part 5
-------------------------------------------------------------------------
Are derived from current
Requirements of new section: section:
------------------------------------------------------------------------
5.0....................................... 5.1.
------------------------------------------------------------------------
Subpart A--General Provisions
------------------------------------------------------------------------
5.1....................................... 5.11.
5.2....................................... 5.1.
5.3....................................... New.
5.4....................................... [reserved].
5.5....................................... [reserved].
5.6....................................... [reserved].
5.7....................................... New.
5.8....................................... New.
5.9....................................... New.
5.10...................................... 5.2.
5.11...................................... 5.3.
5.12...................................... 5.4.
------------------------------------------------------------------------
Subpart B--Certificates of Label Approval and Certificates of Exemption
From Label Approval
------------------------------------------------------------------------
5.21...................................... 5.31(a).
5.22...................................... 5.55.
5.23...................................... 5.55(b).
5.24...................................... 5.51(a).
5.25...................................... 5.51.
5.27...................................... 5.51 and 5.55.
5.28...................................... 5.33(g).
5.29...................................... New.
5.30...................................... 5.52.
------------------------------------------------------------------------
Subpart C--Alteration of Labels, Relabeling and Adding Information to
Containers
------------------------------------------------------------------------
5.41...................................... 5.31(b).
5.42...................................... 5.31(b).
5.43...................................... ............................
------------------------------------------------------------------------
Subpart D--Label Standards
------------------------------------------------------------------------
5.51...................................... 5.33(e).
5.52...................................... 5.33(a).
5.53...................................... 5.33(b)(5) and (6).
5.54...................................... New.
5.55...................................... 5.33(c).
5.56...................................... 5.33(f).
------------------------------------------------------------------------
Subpart E--Mandatory Label Information
------------------------------------------------------------------------
5.61...................................... New.
5.62...................................... 5.41 and New.
5.63...................................... 5.32.
5.64...................................... 5.34.
5.65...................................... 5.37.
5.66...................................... 5.36.
5.67...................................... 5.36.
5.68...................................... 5.36.
5.69...................................... 5.36(e).
5.70...................................... 5.38.
5.71...................................... 5.39(a).
5.72...................................... 5.39(b).
5.73...................................... 5.39(c).
5.74...................................... 5.40.
------------------------------------------------------------------------
Subpart F--Restricted Labeling Statements
------------------------------------------------------------------------
5.81...................................... New.
5.82...................................... 5.32a.
5.83...................................... 5.32b.
5.84...................................... 5.71.
5.85...................................... New.
5.86...................................... Reserved.
5.87...................................... New.
5.88...................................... 5.42(b)(4).
5.89...................................... 5.42(b)(6).
5.90...................................... 5.22(k)(4).
[[Page 60608]]
5.91...................................... 5.42(b)(5).
------------------------------------------------------------------------
Subpart G--Prohibited Labeling Practices
------------------------------------------------------------------------
5.101..................................... New.
5.102..................................... 5.42(a)(1).
5.103..................................... 5.42(a)(3).
------------------------------------------------------------------------
Subpart H--Labeling Practices That Are Prohibited if They Are Misleading
------------------------------------------------------------------------
5.121..................................... New.
5.122..................................... 5.42(a)(1).
5.123..................................... 5.42(a)(5).
5.124..................................... 5.42(a)(2).
5.125..................................... 5.42(a)(4).
5.126..................................... 5.42(b)(7).
5.127..................................... 5.42.
5.128..................................... New.
5.129..................................... 5.42(b)(8).
5.130..................................... 5.42(a)(6).
------------------------------------------------------------------------
Subpart I--The Standards of Identity for Distilled Spirits
------------------------------------------------------------------------
5.141..................................... 5.22.
5.142..................................... 5.22(a).
5.143..................................... 5.22(b) and 5.35(c).
5.144..................................... 5.22(c).
5.145..................................... 5.22(d).
5.146..................................... 5.22(e).
5.147..................................... 5.22(f).
5.148..................................... New.
5.149..................................... New.
5.150..................................... 5.22(h).
5.151..................................... 5.22(i).
5.152..................................... 5.22(j).
5.153..................................... New.
5.154..................................... 5.22(k) and (l).
5.156..................................... 5.23.
5.166..................................... New.
------------------------------------------------------------------------
Subpart J--Formulas
------------------------------------------------------------------------
5.191..................................... 5.25.
5.192..................................... 5.26.
5.193..................................... 5.27.
5.194..................................... 5.28.
------------------------------------------------------------------------
Subpart K--Distilled Spirits Containers and Authorized Container Sizes
------------------------------------------------------------------------
5.201..................................... 5.45.
5.202..................................... 5.46.
5.203..................................... 5.47a.
5.204..................................... New.
5.205..................................... New.
------------------------------------------------------------------------
Subpart L--Recordkeeping and Substantiation Requirements
------------------------------------------------------------------------
5.211..................................... New.
5.212..................................... New.
5.213..................................... 5.33(g).
------------------------------------------------------------------------
Subpart M--Penalties and Compromise of Liability
------------------------------------------------------------------------
5.221..................................... New.
5.222..................................... New.
5.223..................................... New.
------------------------------------------------------------------------
Subpart N--Paperwork Reduction Act
------------------------------------------------------------------------
5.231..................................... New.
------------------------------------------------------------------------
------------------------------------------------------------------------
27 CFR Part 7
-------------------------------------------------------------------------
Are derived from current
Requirements of new section: section:
------------------------------------------------------------------------
7.0....................................... 7.1.
------------------------------------------------------------------------
Subpart A--General Provisions
------------------------------------------------------------------------
7.1....................................... 7.10.
7.2....................................... 7.2.
7.3....................................... 7.20(b) and (c).
7.4....................................... 7.20(a) and New.
7.5....................................... New.
7.6....................................... New.
7.7....................................... New.
7.8....................................... 7.60.
7.9....................................... New.
7.10...................................... 7.4.
7.11...................................... 7.3.
7.12...................................... 7.5.
------------------------------------------------------------------------
Subpart B--Certificates of Label Approval
------------------------------------------------------------------------
7.21...................................... 7.20(b), 7.40 and 7.41.
7.22...................................... 7.40 and 7.41.
7.23...................................... [reserved].
7.24...................................... 7.30 and 7.31(b).
7.25...................................... 7.30 and 7.31.
7.27...................................... 7.42.
7.28...................................... 7.31(d).
7.29...................................... New.
------------------------------------------------------------------------
Subpart C--Alteration of Labels, Relabeling, and Adding Information to
Containers
------------------------------------------------------------------------
7.41...................................... 7.20(c)(1).
7.42...................................... 7.20(c)(2).
7.43...................................... New.
7.44...................................... New.
------------------------------------------------------------------------
Subpart D--Label Standards
------------------------------------------------------------------------
7.51...................................... 7.28(d).
7.52...................................... 7.28(a).
7.53...................................... 7.28(b).
7.54...................................... New.
7.55...................................... 7.28(c).
7.56...................................... 7.28(e).
------------------------------------------------------------------------
Subpart E--Mandatory Label Information
------------------------------------------------------------------------
7.61...................................... New.
7.62...................................... New.
7.63...................................... 7.22.
7.64...................................... 7.23.
7.65...................................... 7.71.
7.66...................................... 7.25(a) and (c).
7.67...................................... 7.25(b).
7.68...................................... 7.25.
7.69...................................... 7.New.
7.70...................................... 7.27.
------------------------------------------------------------------------
Subpart F--Restricted Labeling Statements
------------------------------------------------------------------------
7.81...................................... New.
7.82...................................... 7.22a.
7.83...................................... 7.22b.
7.84...................................... 7.81.
7.85...................................... New.
7.86...................................... Reserved.
7.87...................................... New.
------------------------------------------------------------------------
Subpart G--Prohibited Labeling Practices
------------------------------------------------------------------------
7.101..................................... New.
7.102..................................... 7.29(a)(1).
7.103..................................... 7.29(a)(3).
------------------------------------------------------------------------
Subpart H--Labeling Practices That Are Prohibited if They Are Misleading
------------------------------------------------------------------------
7.121..................................... New.
7.122..................................... 7.29(a)(1) and New.
7.123..................................... 7.29(a)(5).
7.124..................................... 7.29(a)(2).
7.125..................................... 7.29(a)(4).
7.126..................................... 7.29(d).
7.127..................................... 7.29(b).
7.129..................................... 7.29(e).
7.130..................................... 7.29(a)(6).
7.131..................................... 7.29(c).
7.132..................................... 7.29(f).
------------------------------------------------------------------------
Subpart I--Classes and Types of Malt beverages
------------------------------------------------------------------------
7.141..................................... 7.24(a).
7.142..................................... 7.24(e).
7.143..................................... 7.24(b) and New.
7.144..................................... New.
7.145..................................... 7.24(d).
7.146..................................... 7.24(g), (f), and (h).
7.147..................................... New.
------------------------------------------------------------------------
Subpart L--Recordkeeping and Substantiation Requirements
------------------------------------------------------------------------
7.211..................................... New.
7.212..................................... New.
------------------------------------------------------------------------
Subpart M--Penalties and Compromise of Liability
------------------------------------------------------------------------
7.221..................................... New.
7.222..................................... New.
7.223..................................... New.
------------------------------------------------------------------------
Subpart N--Paperwork Reduction Act
------------------------------------------------------------------------
7.231..................................... New.
------------------------------------------------------------------------
------------------------------------------------------------------------
27 CFR Part 14
-------------------------------------------------------------------------
Are derived from current
Requirements of new section: section:
------------------------------------------------------------------------
14.0...................................... New and 7.50.
------------------------------------------------------------------------
Subpart A--General Provisions
------------------------------------------------------------------------
14.1...................................... 4.11, 4.61, 5.11, 5.61,
7.11, 7.51.
14.2...................................... 4.2, 5.1, 7.2.
[[Page 60609]]
14.3...................................... 4.4, 5.4, 7.5.
14.4...................................... 4.60, 5.61, 7.50.
14.5...................................... 4.62, 5.63, 7.52.
14.6...................................... 4.63, 5.64, 7.53.
------------------------------------------------------------------------
Subpart B--Rules Related to Specific Practices in Advertisements
------------------------------------------------------------------------
14.11..................................... New.
14.12..................................... 4.64(b), 4.65, 5.65(b),
5.66, 7.54(b), 7.55.
14.13..................................... 4.64, 5.65, 7.54.
14.14..................................... 4.64, 5.65, 7.54, and New.
14.15..................................... 4.64.
14.16..................................... 5.65.
14.17..................................... 7.54.
------------------------------------------------------------------------
Subpart C--Penalties and Compromise of Liability
------------------------------------------------------------------------
14.21..................................... New.
14.22..................................... New.
14.23..................................... New.
------------------------------------------------------------------------
Subpart D--Paperwork Reduction Act
------------------------------------------------------------------------
14.31..................................... New.
------------------------------------------------------------------------
IV. Public Participation
A. Comments Sought
TTB requests comments from the public and all interested parties on
the regulatory proposals contained in this document. TTB is
particularly interested in comments that address whether the proposed
revisions to the labeling and advertising regulations will continue to
protect the consumer by prohibiting false or misleading statements and
requiring that labels provide the consumer with adequate information
about the identity and quality of the product. Where TTB proposes
substantive changes, TTB seeks comments on the proposals for further
appropriate improvements. With respect to the few proposed changes that
may require changes in current labeling or advertising practices, TTB
seeks comments on the impact that the proposed changes will have on
industry members and any suggestions as to how to minimize any negative
impact.
TTB also seeks comments on whether more significant changes to the
label approval process, such as expanding the categories of optional
information that may be revised without TTB approval or limiting the
scope of TTB's prior review of labels to certain mandatory information,
should be considered. As noted earlier in this document, the FAA Act
generally requires the submission of applications for label approval
before bottlers or importers introduce their products into interstate
commerce. As part of its label review process, TTB reviews both
optional and mandatory information on labels. With regard to optional
information, TTB's main goal is to ensure that such information does
not mislead consumers.
TTB also solicits comments from consumers, industry members, and
the public on whether such changes would adequately protect consumers.
Any regulatory proposals put forward by TTB on this issue would, of
course, have to be consistent with the statutory requirements of the
FAA Act.
B. Submitting Comments
You may submit comments on the proposals contained in this document
by using one of the following three methods:
Federal e-Rulemaking Portal: You may send comments via the
online comment form posted with this document within Docket No. TTB-
2018-0007 on ``Regulations.gov,'' the Federal e-rulemaking portal, at
https://www.regulations.gov. A direct link to that docket is available
under Notice No. 176 on the TTB website at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml. Supplemental files may be
attached to comments submitted via Regulations.gov. For complete
instructions on how to use Regulations.gov, visit the site and click on
the ``Help'' tab.
U.S. Mail: You may send comments via postal mail to the
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005.
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 400, Washington, DC 20005.
Please submit your comments by the closing date shown above in this
document. Your comments must reference Notice No. 176 and include your
name and mailing address. Your comments also must be made in English,
be legible, and be written in language acceptable for public
disclosure. TTB does not acknowledge receipt of comments, and TTB
considers all comments as originals.
In your comment, please clearly state if you are commenting for
yourself or on behalf of an association, business, or other entity. If
you are commenting on behalf of an 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 online comment form. If you comment via
postal mail or hand delivery/courier, 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.
C. Confidentiality
All submitted comments and attachments are part of the public
record and are subject to disclosure. Do not enclose any material in
your comments that you consider to be confidential or inappropriate for
public disclosure.
D. Public Disclosure
TTB will post, and you may view, copies of this document, selected
supporting materials, and any online, mailed, or hand-delivered
comments received about this proposal within Docket No. TTB-2018-0007
on the Federal e-rulemaking portal, Regulations.gov, at https://www.regulations.gov. A direct link to that docket is available on the
TTB website at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 176. You may also reach the
relevant docket through the Regulations.gov search page at https://www.regulations.gov. For information on how to use Regulations.gov,
click on the site's ``Help'' tab.
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 may also view copies of this document, all supporting
materials, and any online, mailed, or hand-delivered comments that TTB
receives 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 TTB's Federal
Register liaision officer at the above address or by telephone at 202-
453-2135 to schedule an appointment or to request copies of comments or
other materials.
V. Regulatory Analysis and Notices
A. Regulatory Flexibility Act
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), TTB has analyzed the potential economic effects of this action
on small
[[Page 60610]]
entities. In lieu of the initial regulatory flexibility analysis
required to accompany proposed rules under 5 U.S.C. 603, section 605
allows the head of an agency to certify that a rule will not, if
promulgated, have a significant economic impact on a substantial number
of small entities. The following analysis provides the factual basis
for TTB's certification under section 605.
1. Small Businesses in the Alcohol Beverage Industry
TTB recognizes that the vast majority of producers, bottlers, and
importers of alcohol beverages are small entities. The Small Business
Administration (SBA) sets out size standards based on the North
American Industry Classification System (NAICS) under which an entity
can be considered small for the purposes of Regulatory Flexibility Act
analysis.\1\ Breweries and wineries are considered small if they have
fewer than 500 employees; distillers are considered small if they have
fewer than 750 employees.
---------------------------------------------------------------------------
\1\ See https://www.sba.gov/content/small-business-size-standards.
---------------------------------------------------------------------------
The U.S. Census Bureau's Statistics of U.S. Businesses data include
data on employment among establishments within NAICS codes. The most
recent data are from 2011. TTB used these data to calculate what
proportion of entities classified within each relevant NAICS code could
be considered small. TTB also looked at the data from 2005 to try to
find changes over time.
Small-Entity Size Standards for Potentially Affected Industries and Proportions of Small Entities Within Those
Industries
----------------------------------------------------------------------------------------------------------------
Small-entity size Proportion of small Proportion of small
Industry (NAICS code) standard entities (2005) entities (2011)
----------------------------------------------------------------------------------------------------------------
Breweries (NAICS 312120)......... Fewer than 500 employees. 92.3 percent (352 small 95.6 percent (696 small
entities of 381 total entities of 728 total
establishments). establishments).
Wineries (NAICS 312130).......... Fewer than 500 employees. 95.2 percent (1559 of 97.0 percent (2613 of
1637). 2694).
Distilleries (NAICS 312140)...... Fewer than 750 employees. 77.0 percent (57 of 74) 91.0 percent (193 of
\1\. 212).\1\
----------------------------------------------------------------------------------------------------------------
\1\ This is the proportion of entities with under 500 employees; the Statistics of U.S. Businesses data do not
include employment at the 750-employee threshold. The true percentage and number of small entities are thus
potentially higher than those listed here.
Source: SBA standards, Statistics of U.S. Businesses (see https://www.census.gov/econ/susb/).
2. Effect of the Proposed Rule
The vast majority of businesses subject to the proposed rule are
small businesses, but the changes proposed in this document will not
have a significant impact on those small entities. The production,
bottling, importation, and distribution of alcohol beverages is an
industry subject to extensive Federal, State, and local regulation. As
mentioned earlier in this document, the labeling and advertising
regulations under the FAA Act have been in place since 1936. The
proposed rule thus largely restates existing requirements, but
clarifies and updates these regulations to make them easier to
understand and to incorporate agency policies. The proposed regulations
take into account modern business practices and contemporary consumer
understanding in order to modernize the regulations, and TTB is seeking
comments from all interested parties on ways in which the regulations
may be improved.
The changes in the proposed rule can be divided into three classes
with respect to their impact on small entities: (1) Clarifying changes
that do not allow or prohibit any new conduct but improve the clarity
and organization of TTB's FAA Act requirements; (2) liberalizing
changes that will potentially give regulated entities new options to
fulfill requirements; and (3) changes that impose new requirements or
require changes to current labels.
a. Clarifying changes: Many of the changes in this proposal are
clarifying in nature. They are designed to make TTB's requirements for
alcohol beverage labeling easier to read and use. These proposed
changes would not have any impact on small businesses, other than
making it easier for them to understand the existing requirements of
the regulation. Examples of clarifying changes include the following:
Adding examples in the regulations of how certain
requirements may be satisfied;
Adding to the regulations guidance that had previously
been provided in rulings, Industry Circulars, or other documents
separate from the regulations;
Addressing questions the public frequently asks TTB;
Making definitions, organization, numbering of sections,
and phrasing of requirements within the regulations consistent across
27 CFR parts 4, 5, and 7 to the extent possible;
Breaking large subparts and large sections into small
subparts and small sections to increase readability; and
Providing more cross references in the regulations to
relevant regulations and statutes.
These changes benefit all regulated entities, especially small
entities, which typically do not have as many resources for complying
with the regulations as larger entities. In addition to these proposed
changes, TTB would also add some requirements to the regulations that
reflect TTB policy by:
Making it explicit that mandatory information may not be
obscured in whole or in part;
Codifying various TTB policies regarding statements of
composition;
Codifying TTB policy on using aggregate packaging to
satisfy standards of fill for wine and distilled spirits;
Changing the definition of a certificate of label approval
(COLA) to incorporate TTB's current policy of expanding the allowable
revisions that may be made to already approved labels through the
issuance of guidance documents;
Codifying TTB's current policy that any wines, distilled
spirits, or malt beverages that are adulterated under the Federal Food,
Drug, and Cosmetic Act are mislabeled under the FAA Act;
Codifying TTB's current policy that compliance with the
labeling regulations issued under the FAA Act does not relieve industry
members of their responsibility to comply with FDA regulations
regarding the safety of additives and ingredients, as well as FDA
regulations regarding the safe use of materials in containers;
Codifying TTB's current policy, as stated on the label
application form, that the issuance of a COLA does not confer trademark
protection or relieve the certificate holder from liability for
violations of the FAA Act, the IRC, ABLA, or related regulations, and
that products covered by a COLA may still
[[Page 60611]]
be mislabeled if the label contains statements that are false or
misleading when applied to the beverage in the container;
Codifying in the regulations the current requirement that
containers covered by a certificate of exemption must bear a labeling
statement that the product is ``For sale in [name of State] only'';
Codifying current TTB guidance with respect to the use of
a COLA by an importer other than the permittee to whom the COLA was
issued;
Codifying TTB's current policy with respect to the
approval of the use of ``personalized labels'' by bottlers without
having to resubmit applications for label approval;
Amending the regulations on the use of semi-generic
designations for consistency with amendments made to the IRC in 2006;
Codifying current policy with respect to the required name
and address statement on labels for wines, distilled spirits, and malt
beverages that have been subject to certain production activities after
importation in bulk;
Codifying current policy with respect to the allowed use
of certain non-misleading labeling claims about environmental and
sustainability practices;
Codifying current policy that allows truthful and non-
misleading comparisons on labels and in advertisements without
violating the prohibition against ``disparaging'' statements;
Providing that the prohibition against the use of flags
and other symbols of a government applies whenever the label may create
a misleading impression that the product is endorsed by, or otherwise
affiliated with, that government;
Removing outdated provisions in the tax laws from the
labeling regulations;
Providing that certain alcohol beverage products do not
meet the definition of a wine, distilled spirit, or malt beverage under
the FAA Act, and must accordingly be labeled in accordance with FDA
labeling regulations for food;
Codifying longstanding policy that products containing
less than 0.5 percent alcohol by volume are not distilled spirits under
the FAA Act;
Specifying how the FAA Act applies to the labeling of malt
beverages under the penultimate paragraph of 27 U.S.C. 205(f); and
For purposes of aging distilled spirits, defining an oak
barrel as a cylindrical oak drum of approximately 50 gallons used to
age bulk spirits.
These provisions reflect current TTB policy, and thus no existing
labels should need to be changed to come into compliance with these
requirements.
b. Liberalizing changes: Liberalizing changes will not require
entities that are currently in compliance with the regulations to make
any changes, but may provide regulated entities with additional options
they can choose to use. Any effect on small entities from these changes
is likely to be positive. Key examples include:
Allowing greater flexibility in the placement of mandatory
information on labels by eliminating the requirement that mandatory
information appear on the ``brand label'';
Liberalizing the requirements for the use of a type
designation consisting of multiple grape varieties, thus allowing
greater flexibility in the blending of wines;
Allowing the use of truthful, accurate, specific, and non-
misleading. additional information on the label about the grape
varieties used to make a still grape wine, sparkling grape wine, or
carbonated grape wine, provided that the information includes every
grape variety used to make the wine, listed in descending order of
predominance;
Liberalizing the requirements for the use of multicounty
or multistate appellations on wine labels, thus allowing more producers
and importers to claim an appellation of origin for these wines;
Allowing the use of vintage dates on wines bottled in the
United States that had been imported in bulk containers under certain
conditions;
Allowing the use of ``estate grown'' on labels of grape
wines that do not meet all of the requirements for an ``estate
bottled'' claim, but where the producing winery grew all of the grapes
used to make the wine on land owned or controlled by the producing
winery, and met certain other conditions;
Allowing certain statements of alcohol content, other than
alcohol as a percentage of alcohol by volume, as additional information
on labels already containing a mandatory alcohol content statement;
Superseding the Industry Circular that required pre-
approval laboratory testing for products containing wormwood;
Modifying the standard of identity for whisky to provide
for ``white whisky'' and ``unaged whisky,'' in response to market
demand for these types of products;
Adding ``agave spirits'' as a class of distilled spirits
and recognizing ``Mezcal'' as a type within that class;
Expanding the allowable alcohol content tolerance for
distilled spirits;
Allowing wholesalers and retailers to relabel distilled
spirits when necessary and when approved by TTB;
Incorporating Ruling 2015-1 by allowing the use of
designations in accordance with trade understanding, rather than
statements of composition, in the labeling of malt beverage specialty
products that are flavored or fermented with ingredients that TTB has
determined are generally recognized as traditional ingredients in the
production of a fermented beverage designated as ``beer,'' ``ale,''
``porter,'' ``stout,'' ``lager,'' or ``malt liquor'';
Allowing certain mandatory information to appear on the
keg collar or tap cover of malt beverage kegs with a capacity of 10
gallons or more, subject to certain requirements; and
Allowing the use of alternate contact information (such as
the telephone number, website, or email address) together with the name
of the responsible advertiser in advertisements.
c. Potentially restrictive changes: Potentially restrictive
proposed changes may require some industry members to either change the
labeling of their products or to change the formulation of the product
to avoid labeling changes. TTB believes that most of these proposed
changes will not impact many products, but solicits comments on the
impact that the proposed changes will have. These changes include:
Adopting consistent language with regard to what type of
products intended for exportation are exempt from the labeling
requirements of parts 4, 5, and 7.
Cross-referencing CBP regulations that require a country
of origin statement on labels of imported wines and malt beverages.
Such a statement is required for distilled spirits under current TTB
regulations. TTB does not believe this will impact many labels, as such
a statement is already required for imported wines and malt beverages
under CBP regulations, and TTB's proposed regulation is simply a cross-
reference to existing CBP requirements.
Specifying that statements of composition and standards of
identity for distilled spirits products must be determined based on the
finished product itself, without regard to whether components are added
to the product directly or through intermediates. This may require the
relabeling of certain specialty products to disclose the use of wine
and spirits that were used in the formulation of intermediate products,
but will ensure that consumers have truthful and
[[Page 60612]]
adequate information about the identity of the product.
Prohibiting the use of labeling and advertising statements
and representations that create a misleading impression that the
product is a different commodity. This may require the relabeling of
certain products that are marketed using terms associated with
different commodities, if such terms create a misleading impression as
to the identity of the product. TTB believes that this will protect
consumers from misleading representations as to the identity of the
product.
Eliminating the ``citrus wine'' designation, which TTB
believes is rarely used on wine labels.
Codifying in the regulations that grape wine and fruit
wine must meet the standards for ``natural wine'' under the IRC.
Defining a distillation as a single run through a pot
still or one run through a single distillation column of a column
(reflux) still. Although this change is clarifying in nature, it may
impact labels that currently claim that the spirits have been distilled
for a certain number of times, but use a different definition of
``distillation.''
Revising the current requirement that certain whisky
products distilled in the United States must include the State of
distillation on the label by providing that a bottling address within
the State does not suffice unless it includes a representation as to
distillation;
Requiring that statements of composition for distilled
spirits list the spirits or wine used in the manufacture of the
distilled spirits in order of predominance. This may require changes to
some labels, but will provide consumers with more clear information
about the composition of distilled spirits specialty products.
Requiring distilled spirits cocktails to bear a full
statement of composition instead of an abbreviated one that just lists
the types of spirits used in the manufacture of the cocktail. This may
require changes to some labels, but will provide consumers with better
information about the identity of the product.
Requiring whisky (other than Tennessee Whisky) that meets
the standard for a type of whisky to be designated with that type name,
rather than as ``whisky.'' TTB does not believe that this will impact
many products, but some labels may have to be changed.
3. Delayed Compliance Date
As mentioned earlier in this document, TTB is proposing to give all
regulated entities three years to come into compliance with the
proposed regulations, should they be finalized.
The label redesign, printing, and administrative costs associated
with making a labeling change are on a ``stock-keeping unit'' (or
``SKU'') basis rather than a formulation basis. To examine costs
associated with label redesign, TTB referred to the FDA's Labeling Cost
Model,\2\ which incorporates assumptions about the proportion of SKUs
that would be changed together with a scheduled label change.
---------------------------------------------------------------------------
\2\ https://www.fda.gov/ohrms/dockets/dockets/04n0382/04n-0382-bkg0001-Tab-05-01-vol1.pdf.
---------------------------------------------------------------------------
Under the FDA's Labeling Cost Model, the longer the implementation
period, the more likely it is that affected industry members can
coordinate new labeling requirements with scheduled labeling changes.
This leads to cost estimates that fall significantly as the time
allowed for the new labeling requirements increases. In other words,
the longer the period of time industry is given to comply with the new
labeling requirements, the lower the costs.
As previously mentioned, TTB does not believe that the changes
proposed by this notice would have a significant impact on many
industry members. To the extent that some labels may have to be revised
to comply with the proposed changes, TTB believes that the vast
majority of industry members that would be affected by these changes
would be able to coordinate labeling changes as a result of the
proposed regulatory requirements with their scheduled labeling changes.
The FDA model assumes that for a three-year delayed compliance
date, required modifications to 100 percent of brand name product
labels and 67 percent of private product labels can be coordinated with
regularly scheduled label changes. Thus, according to this model, there
would be no additional costs for branded products; however there may be
incremental relabeling, printing, and administrative costs for 33
percent of the private label SKUs because their producers may not be
able to coordinate the required changes with their regularly scheduled
labeling changes.
TTB does not know how many entities, large or small, would be
affected by the proposed changes to labeling requirements. However, the
Bureau estimates that these changes will affect only a small percentage
of current labels. Thus, TTB expects that the proposed changes would
not affect many labels, and also that the three-year delayed compliance
date would allow most affected entities to come into compliance with
the changes in conjunction with regularly scheduled label changes.
4. Other Changes
TTB is also proposing to clarify and somewhat expand existing
requirements with regard to ``packaging'' of wine, distilled spirits,
and malt beverage containers. This includes coverings, cartons, cases,
carriers, and other packaging used for sale at retail, but does not
include shipping cartons or cases not intended to accompany the
container to the consumer.
Existing regulations already prohibit certain false or misleading
representations on packaging, and the existing wine and distilled
spirits regulations already require certain mandatory information on
closed ``opaque'' individual coverings or containers. For the reasons
set forth in the preamble, the proposed rule expands this requirement
to include malt beverages and to require that ``closed packaging'' of
wine, distilled spirits, and malt beverages bear all the mandatory
information required on the label. The term ``closed packaging'' would
include sealed opaque coverings and cases. Packaging is not considered
closed if the consumer could view all the mandatory information on the
label by merely lifting the container up, or if the packaging is
transparent or designed in a way that the mandatory information on the
label can be easily read by the consumer without having to open, rip,
untie, unzip or otherwise manipulate the package. This requirement
would also be subject to the three-year delayed compliance date.
TTB believes that alcohol beverage producers who use outer
packaging update their packaging more than once every three years,
similar to labels. The three-year delayed compliance date will give
producers the opportunity to use up existing stocks of packaging. In
addition, outer packaging is typically large enough to accommodate the
mandatory information. TTB solicits comments on the impact that this
proposed change would have on existing packaging materials.
5. Recordkeeping
TTB is proposing to provide further details in the proposed
labeling and advertising regulations regarding recordkeeping and
substantiation requirements under the FAA Act for bottlers and
importers. Current regulations (27 CFR 4.51, 5.55, and 7.42) require
bottlers holding an original or duplicate original of a COLA or a
certificate of exemption to exhibit such certificates, upon demand, to
a duly
[[Page 60613]]
authorized representative of the United States Government. Current
regulations (27 CFR 4.40, 5.51, and 7.31) also require importers to
provide a copy of the applicable COLA upon the request of the
appropriate TTB officer or a customs officer. However, these
regulations do not state how long industry members should retain their
COLAs. Furthermore, since these regulations were originally drafted,
TTB has implemented the electronic filing of applications for label
approval. Now, over 90 percent of new applications for label approval
are submitted electronically, and the rest are processed electronically
by TTB. Industry members have asked for clarification as to whether
they have to retain paper copies of certificates that were processed
electronically. Finally, because industry members may make certain
specified revisions to approved labels without obtaining a new COLA, it
is important that the industry members keep track of which label
approval they are using when they make such revisions.
Accordingly, the proposed regulations provide that, upon request by
the appropriate TTB officer, bottlers and importers must provide
evidence of label approval for a label used on an alcohol beverage
container that is subject to the COLA requirements of the applicable
part. This requirement may be satisfied by providing original COLAs,
photocopies or electronic copies of COLAs, or records identifying the
TTB identification number assigned to the COLA. Where labels on
containers reflect revisions to the approved label that have been made
in compliance with allowable revisions authorized on the COLA form or
otherwise authorized by TTB, the bottler or importer must be able to
identify the COLA covering the product, upon request by the appropriate
TTB officer. Bottlers and importers must be able to provide this
information for a period of five years from the date the products
covered by the COLAs were removed from the bottler's premises or from
customs custody, as applicable.
TTB believes that five years is a reasonable period of time for
record retention because there is a five-year statute of limitations
for criminal violations of the FAA Act. TTB notes that the proposed
rule does not require industry members to retain paper copies of each
COLA; they should simply be able to track a particular removal to a
particular COLA, and they may rely on electronic copies of COLAs,
including copies contained in the TTB Public COLA Registry. TTB
believes that industry members already retain records in this manner in
the ordinary course of their business, but seeks comments on the impact
of this proposal.
The proposed regulations also set forth specific substantiation
requirements, which are new to the regulations, but which reflect TTB's
current expectations as to the level of evidence industry members
should have to support labeling claims. The proposed regulations
provide that all claims, whether implicit or explicit, must have a
reasonable basis in fact. Claims that contain express or implied
statements regarding the amount of support for the claim (e.g., ``tests
provide,'' or ``studies show'') must have the level of substantiation
that is claimed.
Furthermore, the proposed regulations provide for the first time
that any labeling claim that does not have a reasonable basis in fact,
or cannot be adequately substantiated upon the request of the
appropriate TTB officer, will be considered misleading. The regulations
in subpart H are similarly amended to include the same requirement. TTB
believes that this provision, which is very similar to the Federal
Trade Commission's policy on substantiation of advertising claims, will
clarify that industry members are responsible for ensuring that all
labeling and advertising claims have adequate substantiation. See ``FTC
Policy Statement Regarding Advertising Substantiation'' (Appended to
Thompson Medical Co., 104 F.T.C. 648, 839 (1984), aff'd, 791 F.2d 189
(D.C. Cir. 1986), cert. denied, 479 U.S. 1086 (1987)). TTB also
believes that the records necessary to substantiate label and
advertising claims are already retained by industry members in the
ordinary course of business.
TTB also proposes to require the use of TTB Form 5100.51 for the
submission of formulas under parts 4, 5, and 7, rather than allowing
other forms or letterhead statements. Because of the growing use of
online formula submissions and because industry members may find that
use of this form is easier than submitting letterhead applications, TTB
believes that this will assist in the standardization of formula
information.
Finally, TTB is also asking for comments on several issues that are
discussed in the proposal but that are not the subject of any specific
proposed regulatory changes. TTB especially welcomes comments from
small entities on these issues. Small entities may have found market
niches making products that could be affected by these changes. They
may also have fewer resources to change existing products, labels, or
advertisements in response to changes to the regulations. TTB will
carefully consider all comments on these issues before proceeding with
any changes.
In conclusion, while the industries affected by the proposed rule
include a substantial number of small entities, the effects of the
changes in this proposed rule are likely to be small and positive.
Making the regulations easier to understand and comply with will
promote compliance, and liberalizing changes will give all regulated
parties additional options for complying with the regulations or
undertaking new lines of business. Most of the restrictive changes TTB
is proposing apply to labels, and TTB expects that small entities will
be able to comply with them in the course of their normal business
cycle. Producers of alcohol beverages must already keep records in the
ordinary course of business; the proposed rule would clarify what
recordkeeping TTB expects from regulated entities, and the proposed
recordkeeping requirements do not go beyond what could reasonably be
expected based on the statute of limitations for criminal enforcement
of the FAA Act.
6. Certification
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), TTB certifies that this proposed rule, if promulgated, will not
have a significant economic impact on a substantial number of small
entities. The proposed rule will not impose, or otherwise cause, a
significant increase in reporting, recordkeeping, or other compliance
burdens on a substantial number of small entities. The proposed rule is
not expected to have significant secondary or incidental effects on a
substantial number of small entities. Accordingly, a regulatory
flexibility analysis is not required. Pursuant to 26 U.S.C. 7805(f),
TTB will submit the proposed regulations to the Chief Counsel for
Advocacy of the Small Business Administration for comment on the impact
of the proposed regulations on small businesses.
B. Executive Order 12866
It has been determined that this notice is not a significant
regulatory action as defined in Executive Order 12866 of September 30,
1993. Therefore a regulatory assessment is not necessary.
C. Paperwork Reduction Act
This proposed rule contains ten information collections, old and
new. Nine of the collections of information contained in the regulatory
sections affected by this proposed rule have been
[[Page 60614]]
previously reviewed and approved by the Office of Management and Budget
(OMB) in accordance with the Paperwork Reduction Act of 1995 (PRA, 44
U.S.C. 3507) and assigned control numbers 1513-0020, 1513-0046, 1513--
0064, 1513-0084, 1513-0085, 1513-0087, 1513-0111, 1513-0121 and 1513-
0122. The specific regulatory sections in this proposed rule that
contain approved collections of information are Sec. Sec. 4.21-4.28,
4.30, 4.62, 4.63, 4.81-4.98, 4.121-4.136, 5.21-5.27, 5.28, 5.30, 5.62,
5.63, 5.81-5.90, 5.121-5.130, 5.192-5.194, 7.21, 7.22, 7.24-7.27, 7.28,
7.63, 7.66, 7.67, 7.81-7.85, 7.87, 7.121-7.132, 14.6, 14.12, 14.14,
14.15, 14.16, and 14.17. In this proposed rule, TTB is not proposing
any changes to eight of the nine current information collection or
recordkeeping requirements of, or burdens associated with, these
existing information collections.
TTB is amending OMB control number 1513-0087 to include proposed
regulations in Sec. Sec. 4.62, 5.62, and 7.62, which provide that
closed packaging, including sealed opaque coverings, cartons, cases,
carriers, or other packaging used for sale at retail, must include all
mandatory information required to appear on the label. This proposed
requirement is consistent with existing regulations in Sec. Sec. 4.38a
and 5.41 for wine and distilled spirits, respectively, but is new in
part 7 for malt beverages. TTB believes this requirement is necessary
to protect the consumer. TTB does not believe that this proposal will
increase the estimated burden of this information collection because
the required information is already collected and disclosed for the
purposes of labeling under OMB control number 1513-0087. TTB also
believes that most malt beverage industry members currently place all
mandatory information that is required to appear on the label on closed
packages. Thus, TTB believes that the current burden hours for OMB
control number 1513-0087, which are set forth below, will not change.
Estimated number of respondents: 9,552.
Estimated average total annual burden hours: 9,552.
In this proposed rule, TTB also is proposing new recordkeeping
requirements, and TTB is seeking OMB approval of these requirements
under one OMB control number. An agency may not conduct or sponsor, and
a person is not required to respond to, a collection of information
unless it displays a valid OMB control number. The proposed new
recordkeeping requirements are contained in proposed Sec. Sec. 4.211,
4.212, 5.211, 5.212, 7.211, 7.212, and 14.4.
The new recordkeeping requirement in proposed Sec. Sec. 4.211,
5.211, and 7.211 provides that, upon request by the appropriate TTB
officer, bottlers and importers must provide evidence of label approval
for a label used on an alcohol beverage container that is subject to
the COLA requirements of the applicable part. This requirement may be
satisfied by providing original COLAs, photocopies or electronic copies
of COLAs, or records identifying the TTB identification number assigned
to the COLA. Where labels on containers reflect revisions to the
approved label that have been made in compliance with allowable
revisions authorized on the COLA form or otherwise authorized by TTB,
the bottler or importer must be able to identify the COLA covering the
product. Bottlers and importers are required to keep records
identifying each COLA for a period of five years from the date the
products covered by the COLA were removed from the bottler's premises
or from customs custody, as applicable.
The new recordkeeping requirement in proposed Sec. Sec. 4.212,
5.212, 7.212, and 14.4 sets forth specific substantiation requirements
that apply to any claim made on any label or container subject to the
requirements of part 4, 5, or 7, or any claim made in an advertisement
subject to part 14. These substantiation requirements are new to the
regulations, but they reflect TTB's current expectations as to the
level of evidence that industry members should have to support labeling
claims. Proposed Sec. Sec. 4.212, 5.212, and 7.212 provide that the
appropriate TTB officer may request that bottlers and importers provide
evidence that labeling claims are adequately substantiated at any time
within five years from the time the alcohol beverage was removed from
the bottling premises or from customs custody, as applicable. Proposed
Sec. 14.4(c) provides that the appropriate TTB officer may request
that the responsible advertiser provide evidence that advertising
claims are adequately substantiated at any time within a period of five
years from the time the advertisement was last disseminated or
published.
TTB believes that these COLA use and label and advertising claim
substantiation records are necessary to ensure that:
Importers using a COLA that was not issued to them have
received authorization to use the COLA from the person to whom the COLA
was issued (certificate holder);
Labels applied to alcohol beverage containers are covered
by a COLA; and
Claims made on the labels of alcohol beverage containers
and claims made in advertisements for alcohol beverages are truthful,
accurate, and not misleading and do not contain any prohibited
practices.
The retention requirement for records the certificate holder must
maintain of other importers authorized to use its COLA is five years
from the date of the authorization. The retention requirement for
records identifying each COLA is five years after the COLA is last used
to remove a product from the bottler's premises or from customs
custody, as applicable. The retention requirement for records
substantiating claims made in advertisements is five years from the
time the advertisement was last disseminated or published. TTB believes
that all these records are currently maintained during the usual and
customary course of business.
Estimated number of respondents: 10,982.
Estimated average total annual burden hours: 1 (one).
The new and revised recordkeeping requirements have been submitted
to the OMB for review. Comments on these new and revised recordkeeping
requirements should be sent to OMB at Office of Management and Budget,
Attention: Desk Officer for the Department of the Treasury, Office of
Information and Regulatory Affairs, Washington, DC 20503 or by email to
[email protected]. A copy should also be sent to TTB by any
of the methods previously described. Comments on the information
collections should be submitted no later than January 25, 2019.
TTB specifically requests comments concerning:
Whether the proposed recordkeeping collections are
necessary for the proper performance of the functions of TTB, including
whether the information will have practical utility;
How to enhance the quality, utility, and clarity of the
information to be collected;
How to minimize the burden of complying with the
collections of information; and
Estimates of capital and start-up costs and costs of operation,
maintenance, and purchase of services to maintain records.
VI. Drafting Information
Christopher M. Thiemann and Kara T. Fontaine of the Regulations and
Rulings Division drafted this document, along with several other
employees of the
[[Page 60615]]
Alcohol and Tobacco Tax and Trade Bureau.
List of Subjects
27 CFR Part 4
Advertising, Alcohol and alcoholic beverages, Customs duties and
inspection, Food additives, Imports, International agreements,
Labeling, Packaging and containers, Reporting and recordkeeping
requirements, Trade practices, Wine.
27 CFR Part 5
Advertising, Alcohol and alcoholic beverages, Customs duties and
inspection, Food additives, Grains, Imports, International agreements,
Labeling, Liquors, Packaging and containers, Reporting and
recordkeeping requirements, Trade practices.
27 CFR Part 7
Advertising, Alcohol and alcoholic beverages, Beer, Customs duties
and inspection, Food additives, Imports, Labeling, Packaging and
containers, Reporting and recordkeeping requirements, Trade practices.
27 CFR Part 14
Advertising, Alcohol and alcoholic beverages, Beer, Consumer
protection, Liquors, Packaging and containers, Trade practices, Wine.
27 CFR Part 19
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations (Government agencies), Caribbean Basin
initiative, Chemicals, Claims, Customs duties and inspection,
Electronic funds transfers, Excise taxes, Exports, Gasohol, Imports,
Labeling, Liquors, Packaging and containers, Puerto Rico, Reporting and
recordkeeping requirements, Research, Security measures, Spices and
flavorings, Stills, Surety bonds, Transportation, Vinegar, Virgin
Islands, Warehouses, Wine.
Authority and Issuance
For the reasons discussed in the preamble, TTB proposes to amend 27
CFR, chapter I as follows:
0
1. Revise part 4 to read as follows:
PART 4--LABELING OF WINE
Sec.
4.0 Scope.
Subpart A--General Provisions
4.1 Definitions.
4.2 Territorial extent.
4.3 General requirements and prohibitions under the FAA Act.
4.4 [Reserved]
4.5 Wines covered by this part.
4.6 Products produced as wine that are not covered by this part.
4.7 Other TTB labeling regulations that apply to wine.
4.8 Wine for export.
4.9 Compliance with Federal and State requirements.
4.10 Other related regulations.
4.11 Forms.
4.12 Delegations of the Administrator.
Subpart B--Certificates of Label Approval and Certificates of Exemption
From Label Approval
Requirements for Wine Bottled in the United States
4.21 Requirement for certificate of label approval (COLAs) for wine
bottled in the United States.
4.22 Rules regarding certificates of label approval (COLAs) for wine
bottled in the United States.
4.23 Application for exemption from label approval for wines bottled
in the United States.
Requirements for Wine Imported in Containers
4.24 Certificates of label approval (COLAs) for wine imported in
containers.
4.25 Rules regarding certificates of label approval (COLAs) for wine
imported in containers.
Administrative Rules
4.27 Presenting Certificates of Label Approval (COLAs) to Government
officials.
4.28 Formulas, samples, and documentation.
4.29 Personalized labels.
4.30 Certificates of origin, identity, and proper cellar treatment
of wine.
Subpart C--Alteration of Labels, Relabeling, and Adding Information to
Containers
4.41 Alteration of labels.
4.42 Authorized relabeling activities by proprietors of bonded wine
premises and importers.
4.43 Relabeling activities that require separate written
authorization from TTB.
4.44 Adding a label or other information to a container that
identifies the wholesaler, retailer, or consumer.
Subpart D--Label Standards
4.51 Firmly affixed requirements.
4.52 Legibility and other requirements for mandatory information on
labels.
4.53 Type size of mandatory information.
4.54 Visibility of mandatory information.
4.55 Language requirements.
4.56 Additional information.
Subpart E--Mandatory Label Information
4.61 What constitutes a label for purposes of mandatory information.
4.62 Packaging (cartons, coverings, and cases).
4.63 Mandatory label information.
4.64 Brand name.
4.65 Alcohol content.
4.66 Name and address for domestically bottled wine that was wholly
fermented in the United States.
4.67 Name and address for domestically bottled wine that was bottled
after importation.
4.68 Name and address for wine that was imported in a container.
4.69 Country of origin.
4.70 Net contents.
Subpart F--Restricted Labeling Statements
4.81 General.
Food Allergen Labeling
4.82 Voluntary disclosure of major food allergens.
4.83 Petitions for exemption from major food allergen labeling.
Production Claims
4.84 Use of the term ``organic.''
4.85 Environmental, sustainability, and similar statements.
4.86 Use of TTB permit numbers on labels.
4.87 Use of vineyard, orchard, farm, or ranch name as additional
information.
Appellations of Origin for Grape Wine
4.88 Appellations of origin for grape wine in general.
4.89 Eligibility for the use of an appellation of origin for grape
wine.
4.90 Multicounty and multistate appellations of origin for grape
wine.
4.91 Viticultural areas.
Claims About Grape Wine
4.92 Estate bottled.
4.93 Estate grown.
4.94 Claims on grape wine labels for viticultural practices that
result in sweet wine.
4.95 Vintage date.
Appellations of Origin for Fruit Wine, Agricultural Wine, and Rice Wine
4.96 Appellations of origin for fruit wine, agricultural wine, and
rice wine in general.
4.97 Eligibility requirements for use of an appellation of origin
for fruit wine, agricultural wine, and rice wine.
4.98 Multicounty and multistate appellations of origin for fruit
wine, agricultural wine, and rice wine.
Subpart G--Prohibited Labeling Practices
4.101 General.
4.102 False or untrue statements.
4.103 Obscene or indecent depictions.
Subpart H--Labeling Practices That Are Prohibited If They Are
Misleading
4.121 General.
4.122 Misleading statements or representations.
4.123 Guarantees.
4.124 Disparaging statements.
4.125 Tests or analyses.
4.126 Depictions of government symbols.
4.127 Depictions simulating government stamps or relating to
supervision.
4.128 Claims related to distilled spirits or malt beverages.
4.129 Health-related statements.
4.130 Appearance of endorsement.
4.131 Use of the word ``importer'' or similar words.
4.132 [Reserved]
4.133 Claims regarding terms defined or authorized by this part.
[[Page 60616]]
4.134 Statements related to dates or ages.
4.135 Indications of origin.
4.136 Use of a varietal name, type designation of varietal
significance, semi-generic name, or geographic distinctive
designation.
4.137 Terms relating to intoxicating qualities.
Subpart I--The Standards of Identity for Wine
4.141 The standards of identity in general.
4.142 Still grape wine--class and type designation.
4.143 Sparkling grape wine--class and type designation.
4.144 Carbonated grape wine--class and type designation.
4.145 Fruit wine--class and type designation.
4.146 Agricultural wine--class and type designation.
4.147 Aperitif--class and type designation.
4.148 Rice wine--class and type designation.
4.149 Retsina wine--designation.
4.150 Imitation and substandard or other than standard wine--
designation.
4.151 Statements of composition.
4.152-4.153 [Reserved]
Cellar Treatment and Alteration of Class and Type
4.154 Cellar treatment and alteration of class or type.
4.155 [Reserved]
Grape Type Labeling
4.156 Varietal (grape type) labeling as type designations.
4.157 Type designations of varietal significance for American wines.
4.158 [Reserved]
Generic, Semi-Generic, and Non-Generic Designations of Geographic
Significance
4.173 Generic designations of geographic significance.
4.174 Semi-generic designations of geographic significance.
4.175 Nongeneric designation of geographic significance and
nongeneric designations that are distinctive designations of
specific grape wines.
4.176-4.177 [Reserved]
Subpart J--American Grape Variety Names
4.191 Approval of grape variety names.
4.192 List of approved names.
4.193 Alternative names permitted for temporary use.
Subpart K--Standards of Fill and Authorized Container Sizes
4.201 General.
4.202 Standard wine containers.
4.203 Standards of fill (container sizes).
4.204 Aggregate packaging to meet standard of fill requirements.
Subpart L--Recordkeeping and Substantiation Requirements
4.211 Recordkeeping requirements--certificates.
4.212 Substantiation requirements.
Subpart M--Penalties and Compromise of Liability
4.221 Criminal penalties.
4.222 Conditions of basic permit.
4.223 Compromise.
Subpart N--Paperwork Reduction Act
4.231 OMB control numbers assigned under the Paperwork Reduction
Act.
Authority: 27 U.S.C. 205, unless otherwise noted.
Sec. 4.04.0 Scope.
This part sets forth requirements that apply to the labeling and
packaging of wines in containers, including requirements for label
approval and rules regarding mandatory, regulated, and prohibited
labeling statements.
Subpart A--General Provisions
Sec. 4.14.1 Definitions.
When used in this part and on forms prescribed under this part, the
following terms have the meaning assigned to them in this section,
unless the terms appear in a context that requires a different meaning.
Any other term defined in the Federal Alcohol Administration Act (FAA
Act) and used in this part has the same meaning assigned to it by the
FAA Act.
Administrator. The Administrator, Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
American. A descriptive term referring to the 50 States of the
United States, the District of Columbia, and the Commonwealth of Puerto
Rico.
Appropriate TTB officer. An officer or employee of the Alcohol and
Tobacco Tax and Trade Bureau (TTB) authorized to perform any function
relating to the administration or enforcement of this part by the
current version of TTB Order 1135.4, Delegation of the Administrator's
Authorities, in 27 CFR part 4, Labeling of Wine.
Bottler. Any producer or blender of wine, proprietor of bonded wine
premises, or proprietor of a taxpaid wine bottling house, who places
wine in containers.
Brand name. The name under which a wine or line of wine is sold.
Brix. The quantity of dissolved solids expressed as grams of
sucrose in 100 grams of solution (percent by weight of sugar) at 68
degrees Fahrenheit (20 degrees Celsius).
Certificate holder. The permittee or brewer whose name, address,
and basic permit number, plant registry number, or brewer's notice
number appears on an approved TTB Form 5100.31.
Certificate of exemption from label approval. A certificate issued
on TTB Form 5100.31, which authorizes the bottling of wine or distilled
spirits, under the condition that the product will under no
circumstances be sold, offered for sale, shipped, delivered for
shipment, or otherwise introduced by the applicant, directly or
indirectly, into interstate or foreign commerce.
Certificate of label approval (COLA). A certificate issued on TTB
Form 5100.31 that authorizes the bottling of wine, distilled spirits,
and malt beverages, or the removal of bottled wine, distilled spirits,
and malt beverages from customs custody for introduction into commerce,
as long as the product bears labels identical to the labels appearing
on the face of the certificate, or labels with changes authorized by
TTB on the certificate or otherwise.
Container. Any can, bottle, box with an internal bladder, cask,
keg, barrel, or other closed receptacle, in any size or material, that
is for use in the sale of wine at retail. See subpart K of this part
for rules regarding authorized standards of fill for containers.
County. Includes a county or a political subdivision recognized by
the State as a county equivalent.
Customs officer. An officer of U.S. Customs and Border Protection
(CBP) or any agent or other person authorized by law to perform the
duties of such an officer.
Distinctive or fanciful name. A descriptive name or phrase chosen
to identify a wine product on the label. It does not include a brand
name, class or type designation, or statement of composition.
FAA Act. The Federal Alcohol Administration Act.
Fully finished. Ready to be bottled, except that it may be further
subject to the practices authorized in Sec. 4.154(c) and blending that
does not result in an alteration of class or type under Sec. 4.154(b).
Gallon. A U.S. gallon of 231 cubic inches at 60 degrees Fahrenheit.
Grape wine. When used without further modification, the term
``grape wine'' includes still grape wine, sparkling grape wine, and
carbonated grape wine. As set forth in Sec. 4.142, however, the term
``grape wine'' by itself may be used to designate only still grape
wine.
Interstate or foreign commerce. Commerce between any State and any
place outside of that State or commerce within the District of Columbia
or commerce between points within the same State but through any place
outside of that State.
Liter or litre. A metric unit of capacity equal to 1,000 cubic
centimeters or 1,000 milliliters (mL) of wine at 20 degrees Celsius (68
degrees Fahrenheit),
[[Page 60617]]
and equivalent to 33.814 U.S. fluid ounces.
Net contents. The amount, by volume, of wine held in a container.
Permittee. Any person holding a basic permit under the FAA Act.
Person. Any individual, corporation, partnership, association,
joint-stock company, business trust, limited liability company, or
other form of business enterprise, including a receiver, trustee, or
liquidating agent and including an officer or employee of any agency of
a State or political subdivision of a State.
Pure condensed must. The dehydrated juice or must of sound, ripe
grapes, or other fruit or agricultural products, concentrated to not
more than 80[deg] brix, the composition thereof remaining unaltered
except for removal of water.
Restored pure condensed must. Pure condensed must to which has been
added an amount of water not exceeding the amount removed in the
dehydration process.
State. One of the 50 States of the United States, the District of
Columbia, or the Commonwealth of Puerto Rico.
Total solids. The degrees Brix of the dealcoholized wine restored
to its original volume with water.
TTB. The Alcohol and Tobacco Tax and Trade Bureau of the Department
of the Treasury.
United States (U.S.). The 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
Wine. Section 117(a) of the Federal Alcohol Administration Act (27
U.S.C. 211(a)) defines ``wine'' as any of the following products for
nonindustrial use that contain not less than 7 percent and not more
than 24 percent alcohol by volume:
(1) Wine as defined in section 610 and section 617 of the Revenue
Act of 1918 (26 U.S.C. 5381-5392); and
(2) Other alcoholic beverages not so defined, but made in the
manner of wine, including sparkling and carbonated wine, wine made from
condensed grape must, wine made from other agricultural products than
the juice of sound, ripe grapes, imitation wine, compounds sold as
wine, vermouth, cider, perry, and sak[eacute].
Sec. 4.24.2 Territorial extent.
The provisions of this part apply to the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
Sec. 4.34.3 General requirements and prohibitions under the FAA Act.
(a) Certificates of label approval (COLAs). Subject to the
requirements and exceptions set forth in the regulations in subpart B
of this part, any bottler of wine, and any person who removes wine in
containers from customs custody for sale or any other commercial
purpose, is required to first obtain from TTB a COLA covering the
label(s) on each container.
(b) Alteration, mutilation, destruction, obliteration, or removal
of labels. Subject to the requirements and exceptions set forth in the
regulations in subpart C of this part, it is unlawful to alter,
mutilate, destroy, obliterate, or remove labels on wine containers.
This prohibition applies to any person, including retailers, holding
wine for sale in interstate or foreign commerce or any person holding
wine for sale after shipment in interstate or foreign commerce.
(c) Labeling requirements for wine. It is unlawful for any person
engaged in business as a producer, blender, importer, or wholesaler of
wine, directly or indirectly, or through an affiliate, to sell or ship,
or deliver for sale or shipment, or otherwise introduce or receive, in
interstate or foreign commerce, or remove from customs custody, any
wine in containers, unless the wine is bottled in containers, and the
containers are marked, branded, and labeled, in conformity with the
regulations in this part.
(d) Labeled in accordance with this part. In order to be labeled in
accordance with the regulations in this part, a container of wine must
be in compliance with the following requirements:
(1) It must bear one or more labels meeting the standards for
``labels'' set forth in subpart D of this part;
(2) One or more of the labels on a container must include the
mandatory information set forth in subpart E of this part;
(3) Claims on any label(s), container, or packaging (as defined in
Sec. 4.81) must comply with the rules for regulated label statements,
as applicable, set forth in subpart F of this part;
(4) Statements or any other representations on any wine label,
container, or packaging (as defined in Sec. Sec. 4.101 and 4.121) may
not violate the regulations in subparts G and H of this part regarding
certain practices on labeling of wine;
(5) The class and type designation on the label(s), as well as any
designation appearing on containers or packaging, must comply with the
standards of identity set forth in subpart I of this part; and
(6) The wine in the container must not be adulterated within the
meaning of the Federal Food, Drug, and Cosmetic Act.
(e) Bottled in accordance with this part. In order to be bottled in
accordance with the regulations in this part, the wine must be bottled
in authorized standards of fill in containers that meet the
requirements of subpart K.
Sec. 4.44.4 [Reserved]
Sec. 4.54.5 Wines covered by this part.
The regulations in this part apply to wine containing not less than
7 percent and not more than 24 percent alcohol by volume.
Sec. 4.64.6 Products produced as wine that are not covered by this
part.
Certain wine products do not fall within the definition of a
``wine'' under the FAA Act and are thus not subject to this part. See
Sec. 4.7 for related TTB regulations that may apply to these products.
See Sec. Sec. 24.10 and 27.11 of this chapter for the definition of
``wine'' under the Internal Revenue Code.
(a) Products containing less than 7 percent alcohol by volume. The
regulations in this part do not cover products that would otherwise
meet the definition of wine except that they contain less than 7
percent alcohol by volume. Bottlers and importers of alcohol beverages
that do not fall within the definition of malt beverages, wine, or
distilled spirits under the FAA Act should refer to the applicable
labeling regulations for foods issued by the U.S. Food and Drug
Administration. See 21 CFR part 101.
(b) Products containing more than 24 percent alcohol by volume.
Products that would otherwise meet the definition of wine except that
they contain more than 24 percent alcohol by volume are classified as
distilled spirits and must be labeled in accordance with part 5 of this
chapter.
Sec. 4.74.7 Other TTB labeling regulations that apply to wine.
In addition to the regulations in this part, wine must also comply
with the TTB labeling regulations in paragraphs (a) and (b) of this
section:
(a) Health warning statement. Alcoholic beverages, including wine,
that contain at least one-half of one percent alcohol by volume, must
be labeled with a health warning statement in accordance with the
Alcoholic Beverage Labeling Act of 1988 (ABLA). The regulations
implementing the ABLA are contained in 27 CFR part 16.
(b) Internal Revenue Code requirements. The labeling and marking
requirements for wine under the Internal Revenue Code are found in 27
CFR part 24, subpart L (for domestic
[[Page 60618]]
wine premises) and 27 CFR part 27, subpart E (for imports).
Sec. 4.84.8 Wine for export.
Wine that is exported in bond without payment of tax directly from
a bonded wine premises or from customs custody is not subject to this
part. For purposes of this section, direct exportation in bond does not
include exportation after wine has been removed for consumption or sale
in the United States, with appropriate tax determination or payment.
Sec. 4.94.9 Compliance with Federal and State requirements.
(a) General. Compliance with the requirements of this part relating
to the labeling and bottling of wine does not relieve industry members
from responsibility for complying with other applicable Federal and
State requirements, including but not limited to those highlighted in
paragraphs (b) and (c) of this section.
(b) Ingredient safety. While it remains the responsibility of the
industry member to ensure that any ingredient used in production of
wine complies fully with all applicable U.S. Food and Drug
Administration (FDA) regulations pertaining to the safety of food
ingredients and additives, the appropriate TTB officer may at any time
request documentation to establish such compliance. As set forth in
Sec. 4.3(d), wines that are adulterated under the Federal Food, Drug,
and Cosmetic Act are not labeled in accordance with this part.
(c) Containers. While it remains the responsibility of the industry
member to ensure that containers are made of suitable materials that
comply with all applicable FDA health and safety regulations for the
packaging of beverages for consumption, the appropriate TTB officer may
at any time request documentation to establish such compliance.
Sec. 4.10 Other related regulations.
(a) TTB regulations. Other TTB regulations that relate to wine are
listed in paragraphs (a)(1) through (11) of this section:
(1) 27 CFR Part 1--Basic Permit Requirements Under the Federal
Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and
Wine, Bulk Sales and Bottling of Distilled Spirits;
(2) 27 CFR Part 9--American Viticultural Areas;
(3) 27 CFR Part 12--Foreign Nongeneric Names of Geographic
Significance Used in the Designation of Wines;
(4) 27 CFR Part 13--Labeling Proceedings;
(5) 27 CFR Part 14--Advertising of Alcohol Beverage Products;
(6) 27 CFR Part 16--Alcoholic Beverage Health Warning Statement;
(7) 27 CFR Part 24--Wine;
(8) 27 CFR Part 26--Liquors and Articles From Puerto Rico and the
Virgin Islands;
(9) 27 CFR Part 27--Importation of Distilled Spirits, Wines, and
Beer;
(10) 27 CFR Part 28--Exportation of Alcohol; and
(11) 27 CFR Part 71--Rules of Practice in Permit Proceedings.
(b) Other Federal regulations. The regulations listed in paragraphs
(b)(1) through (9) of this section issued by other Federal agencies
also may apply:
(1) 7 CFR Part 205--National Organic Program;
(2) 19 CFR Part 11--Packing and Stamping; Marking;
(3) 19 CFR Part 102--Rules of Origin;
(4) 19 CFR Part 134--Country of Origin Marking;
(5) 21 CFR Part 1--General Enforcement Provisions, Subpart H,
Registration of Food Facilities, and Subpart I, Prior Notice of
Imported Food;
(6) 21 CFR Parts 70-82, which pertain to food and color additives;
(7) 21 CFR Part 101--Food Labeling;
(8) 21 CFR Part 110--Current Good Manufacturing Practice in
Manufacturing Packing, or Holding Human Food; and
(9) 21 CFR Parts 170-189, which pertain to food additives and
secondary direct food additives.
Sec. 4.11 Forms.
(a) General. TTB prescribes and makes available all forms required
by this part. Any person completing a form must provide all of the
information required by each form as indicated by the headings on the
form and the instructions for the form. Each form must be filed in
accordance with this part and the instructions for the form.
(b) Electronically filing forms. The forms required by this part
can be filed electronically by using TTB's online filing systems: COLAs
Online and Formulas Online. Anyone who intends to use one of these
online filing systems must first register to use the system by
accessing the TTB website at https://www.ttb.gov.
(c) Obtaining paper forms. Forms required by this part are
available for printing through the TTB website (https://www.ttb.gov) or
by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau,
National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH
45202.
Sec. 4.12 Delegations of the Administrator.
Most of the regulatory authorities of the Administrator contained
in this part are delegated to ``appropriate TTB officers.'' To find out
which officers have been delegated specific authorities, see the
current version of TTB Order 1135.4, Delegation of the Administrator's
Authorities in 27 CFR part 4, Labeling of Wine. Copies of this order
can be obtained by accessing the TTB website (https://www.ttb.gov) or
by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau,
National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH
45202.
Subpart B--Certificates of Label Approval and Certificates of
Exemption From Label Approval
Requirements for Wine Bottled in the United States
Sec. 4.21 Requirement for certificates of label approval (COLAs) for
wine bottled in the United States.
(a) This section applies to wine bottled in the United States,
outside of customs custody.
(b) No person may bottle wine without first applying for and
obtaining a certificate of label approval issued by the appropriate TTB
officer. This requirement applies to wine produced and bottled in the
United States and to wine imported in bulk and bottled in the United
States. Bottlers may obtain an exemption from this requirement only if
they satisfy the conditions set forth in Sec. 4.23.
Sec. 4.22 Rules regarding certificates of label approval (COLAs) for
wine bottled in the United States.
(a) What a COLA authorizes. An approved TTB Form 5100.31 authorizes
the bottling of a wine covered by the COLA as long as the container
bears labels identical to the labels appearing on the face of the COLA,
or labels with changes authorized by TTB on the COLA or otherwise. The
list of allowable changes can be found at https://www.ttb.gov.
(b) What a COLA does not do. Among other things, the issuance of a
COLA does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from its responsibility to
ensure that all ingredients used in the production of the wine comply
with applicable requirements of the U.S. Food and Drug Administration
with regard to ingredient safety; or
(3) Relieve the certificate holder from liability for violations of
the FAA Act, the Alcoholic Beverage Labeling Act,
[[Page 60619]]
the Internal Revenue Code, or related regulations and rulings.
(i) The issuance of a COLA does not mean that TTB has verified the
accuracy of any representations or claims made on the label with
respect to the product in the container. It is the responsibility of
the applicant to ensure that all information on the application is true
and correct, and that all labeling representations and claims are
truthful, accurate, and not misleading with respect to the product in
the container.
(ii) A wine may be mislabeled even when the label is covered by a
COLA. For example, if the label on the container contains
representations that are false or misleading when applied to the
product in the container, the wine is not labeled in accordance with
the regulations in this part, even if it is covered by a COLA.
(c) When to obtain a COLA. The COLA must be obtained prior to
bottling. No producer or blender of wine, proprietor of bonded wine
premises or proprietor of a taxpaid wine bottling house may bottle
wine, or remove wine from the premises where bottled, unless a COLA has
been obtained.
(d) Application for a COLA. The bottler may apply for a COLA by
submitting an application to TTB on Form 5100.31, in accordance with
the instructions on the form. The bottler may apply for a COLA either
electronically by accessing TTB's online system, COLAs Online, at TTB's
website (https://www.ttb.gov) or by submitting the paper form. For
procedures regarding the issuance of COLAs, see part 13 of this
chapter.
Sec. 4.23 Application for exemption from label approval for wines
bottled in the United States.
(a) Exemption. A producer or blender of wine, proprietor of bonded
wine premises, or proprietor of a taxpaid wine bottling house may apply
for exemption from the labeling requirements of this part, if the
bottler shows, to the satisfaction of the appropriate TTB officer, that
the wine to be bottled will be offered for sale only within the State
in which it is bottled and will not be sold, offered for sale, or
shipped or delivered for shipment, or otherwise introduced, in
interstate or foreign commerce.
(b) Application required. The bottler must file an application on
TTB Form 5100.31 for exemption from label approval before bottling the
wine. The bottler may apply for a certificate of exemption from label
approval either electronically, by accessing TTB's online system, COLAs
Online, at https://www.ttb.gov, or by using the paper form. For
procedures regarding the issuance of certificates of exemption from
label approval, see part 13 of this chapter.
(c) Labeling of wines covered by certificate of exemption. The
application for a certificate of exemption from label approval requires
that the applicant identify the State in which the product will be
sold. As a condition of receiving exemption from label approval, the
label covered by an approved certificate of exemption must include the
statement ``For sale in [name of State] only.'' See Sec. 24.257 of
this chapter for additional labeling rules that apply to wines covered
by a certificate of exemption.
Requirements for Wine Imported in Containers
Sec. 4.24 Certificates of label approval (COLAs) for wine imported
in containers.
(a) Application requirement. Any person removing wine in containers
from customs custody for consumption must first apply for and obtain a
COLA covering the wine from the appropriate TTB officer.
(b) Release of wine from customs custody. Wine imported in
containers is not eligible for release from customs custody for
consumption, and no person may remove such wine from customs custody
for consumption, unless the person removing the wine has obtained and
is in possession of a COLA covering the wine.
(c) Filling requirements. If filing electronically, the importer
must file with U.S. Customs and Border Protection (CBP), at the time of
filing the customs entry, the TTB-assigned identification number of the
valid COLA that corresponds to the label on the brand or lot of wine to
be imported. If the importer is not filing electronically, the importer
must provide a copy of the COLA to CBP at the time of entry. In
addition, the importer must provide a copy of the applicable COLA, and
proof of the certificate holder's authorization if applicable, upon
request by the appropriate TTB officer or a customs officer.
(d) Scope of this section. The COLA requirement imposed by this
section applies only to wine that is removed for sale or any other
commercial purpose. Wine that is imported in containers is not eligible
for a certificate of exemption from label approval. See 27 CFR 27.49,
27.74, and 27.75 for labeling exemptions applicable to certain imported
samples of wine.
(e) Relabeling in customs custody. Containers of wine in customs
custody that are required to be covered by a COLA but are not labeled
in conformity with a COLA must be relabeled, under the supervision and
direction of customs officers, prior to their removal from customs
custody for consumption.
Sec. 4.25 Rules regarding certificates of label approval (COLAs) for
wine imported in containers.
(a) What a COLA authorizes. An approved TTB Form 5100.31 authorizes
the use of the labels covered by the COLA on containers of wine, as
long as the container bears labels identical to the labels appearing on
the face of the COLA, or labels with changes authorized by the form or
otherwise authorized by TTB.
(b) What a COLA does not do. Among other things, the issuance of a
COLA does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from its responsibility to
ensure that all ingredients used in the production of the wine comply
with applicable requirements of the U.S. Food and Drug Administration
with regard to ingredient safety; or
(3) Relieve the certificate holder from liability for violations of
the FAA Act, the Alcoholic Beverage Labeling Act, the Internal Revenue
Code, or related regulations and rulings.
(i) The issuance of a COLA does not mean that TTB has verified the
accuracy of any representations or claims made on the label with
respect to the product in the container. It is the responsibility of
the applicant to ensure that all information on the application is true
and correct and that all labeling representations and claims are
truthful, accurate, and not misleading with respect to the product in
the container.
(ii) A wine may be mislabeled even when the label is covered by a
COLA. For example, if the label on the container contains
representations that are false or misleading when applied to the
product in the container, the wine is not labeled in accordance with
the regulations in this part, even if it is covered by a COLA.
(c) When to obtain a COLA. The COLA must be obtained prior to the
removal of wine in containers from customs custody for consumption.
(d) Application for a COLA. The person responsible for the
importation of wine must obtain approval of the labels by submitting an
application to TTB on Form 5100.31. A person may apply for a COLA
either electronically by accessing TTB's online system, COLAs Online,
at TTB's website (https://www.ttb.gov) or by submitting the paper form.
For procedures
[[Page 60620]]
regarding the issuance of COLAs, see part 13 of this chapter.
Administrative Rules
Sec. 4.27 Presenting Certificates of Label Approval (COLAs) to
Government officials.
A certificate holder must present the original or a paper or
electronic copy of the appropriate COLA upon the request of any duly
authorized representative of the United States Government.
Sec. 4.28 Formulas, samples, and documentation.
(a) Prior to or in conjunction with the review of an application
for a COLA on TTB Form 5100.31, the appropriate TTB officer may require
a bottler or importer to submit a formula, the results of laboratory
testing of the wine, or a sample of any wine or ingredients used in
producing a wine. The appropriate TTB officer also may request such
information or samples after the issuance of such COLA, or in
connection with any wine that is required to be covered by a COLA. A
formula may be filed electronically by using Formulas Online, or it may
be submitted on paper on Form 5100.51. See Sec. 4.11 for more
information on forms and Formulas Online.
(b) Upon request of the appropriate TTB officer, a bottler or
importer must submit a full and accurate statement of the contents of
any container to which labels are to be or have been affixed, as well
as any other documentation on any issue pertaining to whether the wine
is labeled in accordance with this part.
Sec. 4.29 Personalized labels.
(a) General. Applicants for label approval may obtain permission
from TTB to make certain changes in order to personalize labels without
having to resubmit labels for TTB approval. Personalized labels may
contain a personal message, picture, or other artwork that is specific
to the consumer who is purchasing the product. For example, a winery
may offer individual or corporate customers labels that commemorate an
event such as a wedding or grand opening.
(b) Application. Any person who intends to offer personalized
labels must submit a template for the personalized label with the
application for label approval, and must note on the application a
description of the specific personalized information that may change.
(c) Approval of personalized label. If the application complies
with the regulations, TTB will issue a certificate of label approval
(COLA) with a qualification allowing the personalization of labels. The
qualification will allow the certificate holder to add or change items
on the personalized label such as salutations, names, graphics,
artwork, congratulatory dates and names, or event dates without
applying for a new COLA. All of these items on personalized labels must
comply with the regulations of this part.
(d) Changes not allowed to personalized labels. Approval of an
application to personalize labels does not authorize the addition of
any information that discusses either the alcohol beverage or
characteristics of the alcohol beverage or that is inconsistent with or
in violation of the provisions of this part or any other applicable
provision of law or regulations.
Sec. 4.30 Certificates of origin, identity, and proper cellar
treatment of wine.
(a) Certificate of origin and identity. Wine imported in containers
is not eligible for release from customs custody for consumption, and
no person may remove such wine from customs custody for consumption,
unless that person has obtained and is in possession of an invoice
accompanied by a certificate of origin issued by an official duly
authorized by the appropriate foreign government, if that country
requires the issuance of such a certificate for wine exported from that
country. The certificate must certify as to the identity of the wine
and that the wine has been produced in compliance with the laws of the
foreign country regulating the production of the wine for home
consumption.
(b) Certification of proper cellar treatment of natural wine--(1)
General. An importer of wine may be required to have in its possession
at the time of release of the wine from customs custody a
certification, or may have to comply with other conditions prescribed
in Sec. 27.140 of this chapter, regarding proper cellar treatment. If
certification is required for imported wine under Sec. 27.140 of this
chapter, the importer must provide a copy of that certification to TTB
as follows:
(i) The importer must include a copy of the certification with the
application for a certificate of label approval (COLA) for the wine
that is submitted under Sec. 13.21 of this chapter; or
(ii) If a certification for the wine in question was not available
when the importer submitted the application for label approval, the
importer must submit a copy of the certification to the appropriate TTB
officer before the first shipment of the wine is released from customs
custody.
(2) Validity of certification. A certification submitted under
paragraph (b)(1) of this section is valid for multiple shipments of
imported wine as long as the wine is of the same brand and class or
type; was made by the same producer; was subjected to the same cellar
treatment; and conforms to the statements made on the certification.
Accordingly, if the cellar treatment applied to the wine changes and a
new certification under Sec. 27.140 of this chapter is required, the
importer must submit a new certification to TTB even if a new COLA is
not required.
(3) Use of certification. TTB may use the information from a
certification for purposes of verifying the appropriate class and type
designation of the wine under the labeling provisions of this part. TTB
will make certifications submitted under paragraph (b)(1) of this
section available to the public on the TTB website at https://www.ttb.gov.
(c) Retention of certificates--wine imported in containers. The
importer of wine imported in containers must retain for five years
following the date of the removal of the bottled wine from customs
custody copies of the certificates (and accompanying invoices, if
required) required by paragraphs (a) and (b) of this section, and must
provide them upon request of the appropriate TTB officer or a customs
officer.
(d) Wine imported in bulk for bottling in the United States. Wine
that would be required under paragraphs (a) and (b) of this section to
be covered by a certificate of origin and identity and/or a
certification of proper cellar treatment and that is imported in bulk
for bottling in the United States may be removed from the premises
where bottled only if the bottler possesses a certificate of origin and
identity and/or a certification of proper cellar treatment of natural
wine applicable to the wine, issued by the appropriate entity as set
forth in paragraphs (a) and (b) of this section and Sec. 27.140 of
this chapter respectively, applicable to the wine that provides the
same information as a certificate required under paragraphs (a) and (b)
of this section and Sec. 27.140 of this chapter, would provide for
like wine imported in bottles.
(e) Retention of wine certificates--wine in bulk. The bottler of
wine imported in bulk must retain, for five years following the removal
of such wine from the premises where bottled, copies of the
certificates required by paragraphs (a) and (b) of this section, and
must provide them upon request of the appropriate TTB officer.
[[Page 60621]]
Subpart C--Alteration of Labels, Relabeling, and Adding Information
to Containers
Sec. 4.41 Alteration of labels.
(a) Prohibition. It is unlawful for any person to alter, mutilate,
destroy, obliterate or remove any mark, brand, or label on wine in
containers held for sale in interstate or foreign commerce, or held for
sale after shipment in interstate or foreign commerce, except as
authorized by Sec. 4.42, Sec. 4.43, or Sec. 4.44, or as otherwise
authorized by Federal law.
(b) Authorized relabeling. For purposes of the relabeling
activities authorized by this subpart, the term ``relabel'' includes
the alteration, mutilation, destruction, obliteration, or removal of
any existing mark, brand, or label on the container, as well as the
addition of a new label (such as a sticker that adds information about
the product or information engraved on the container) to the container,
and the replacement of a label with a new label bearing identical
information.
(c) Obligation to comply with other requirements. Authorization to
relabel under this subpart in no way authorizes the placement of labels
on containers that do not accurately reflect the brand, bottler,
identity, or other characteristics of the product; nor does it relieve
the person conducting the relabeling operations from any obligation to
comply the regulations in this part and with State or local law, or to
obtain permission from the owner of the brand where otherwise required.
Sec. 4.42 Authorized relabeling activities by proprietors of bonded
wine premises and importers.
(a) Relabeling at bonded wine premises. Proprietors of bonded wine
premises may relabel domestically bottled wine prior to removal from,
and after return to bond at, the bonded wine premises, with labels
covered by a certificate of label approval (COLA) without obtaining
separate permission from TTB for the relabeling activity.
(b) Relabeling after removal from bonded wine premises. Proprietors
of bonded wine premises may relabel domestically bottled wine after
removal from bonded wine premises with labels covered by a COLA,
without obtaining separate permission from TTB for the relabeling
activity.
(c) Relabeling in customs custody. Under the supervision of customs
officers, imported wine in containers in customs custody may be
relabeled without obtaining separate permission from TTB for the
relabeling activity. Such containers must bear labels covered by a COLA
upon their removal from customs custody for consumption. See Sec.
4.24(b).
(d) Relabeling after removal from customs custody. Imported wine in
containers may be relabeled by the importer thereof after removal from
customs custody without obtaining separate permission from TTB for the
relabeling activity, as long as the labels are covered by a COLA.
Sec. 4.43 Relabeling activities that require separate written
authorization from TTB.
Any persons holding wine for sale who need to relabel the
containers but are not eligible to obtain a certificate of label
approval to cover the labels that they wish to affix to the containers
may apply for written permission for the relabeling of wine containers.
The appropriate TTB officer may permit relabeling of wine in containers
if the facts show that the relabeling is for the purpose of compliance
with the requirements of this part or State law. The written
application must include copies of the original and proposed new
labels; the circumstances of the request, including the reason for
relabeling; the number of containers to be relabeled; the location
where the relabeling will take place; and the name and address of the
person who will be conducting the relabeling operations.
Sec. 4.44 Adding a label or other information to a container that
identifies the wholesaler, retailer, or consumer.
Any label or other information that identifies the wholesaler,
retailer, or consumer of the wine may be added to containers (by the
addition of stickers, engraving, stenciling, etc.) without prior
approval from TTB and without being covered by a certificate of label
approval or certificate of exemption from label approval. Such
information may be added before or after the containers have been
removed from bonded wine premises or released from customs custody. The
information added:
(a) May not violate the provisions of subpart F, G, or H of this
part;
(b) May not contain any reference to the characteristics of the
product; and
(c) May not be added to the container in such a way that it
obscures any other labels on the container.
Subpart D--Label Standards
Sec. 4.51 Firmly affixed requirements.
Any label that is not an integral part of the container must be
affixed to the container in such a way that it cannot be removed
without thorough application of water or other solvents.
Sec. 4.52 Legibility and other requirements for mandatory
information on labels.
(a) Readily legible. Mandatory information on labels must be
readily legible to potential consumers under ordinary conditions.
(b) Separate and apart. Mandatory information on labels, except
brand names, must be separate and apart from any additional
information. This does not preclude the addition of brief optional
phrases of additional information as part of the class or type
designation (such as, ``premium wine''), the name and address statement
(such as, ``Proudly produced and bottled by ABC Winemaking Co. in Napa,
CA, for over 30 years'') or other information required by Sec. 4.63(a)
and (b), as long as the additional information does not detract from
the prominence of the mandatory information. The statements required by
Sec. 4.63(c) may not include additional information.
(c) Contrasting background. Mandatory information must appear in a
color that contrasts with the background on which it appears, except
that if the net contents are blown into a glass container, they need
not be contrasting. The color of the container and of the wine must be
taken into account if the label is transparent or if mandatory label
information is etched, engraved, sandblasted, or otherwise carved into
the surface of the container or is branded, stenciled, painted,
printed, or otherwise directly applied on to the surface of the
container. Examples of acceptable contrasts are:
(1) Black lettering appearing on a white or cream background; or
(2) White or cream lettering appearing on a black background.
(d) Capitalization. Except for the aspartame statement when
required by Sec. 4.63(b)(4), which must appear in all capital letters,
mandatory information prescribed by this part may appear in all capital
letters, in all lower-case letters, or in mixed-case using both capital
and lower-case letters.
Sec. 4.53 Type size of mandatory information.
All capital and lowercase letters in statements of mandatory
information on labels must meet the following type size requirements:
(a) Minimum type size--(1) Containers of more than 187 milliliters.
All mandatory information (including the alcohol content statement)
must be in script, type, or printing that is at least two millimeters
in height.
(2) Containers of 187 milliliters or less. All mandatory
information (including the alcohol content statement) must be in
script, type, or
[[Page 60622]]
printing that is at least one millimeter in height.
(b) Maximum type size for alcohol content statement. The alcohol
content statement on containers of five liters or less may not appear
in script, type, or printing that is more than three millimeters in
height.
Sec. 4.54 Visibility of mandatory information.
Mandatory information on a label must be readily visible and may
not be covered or obscured in whole or in part. See Sec. 4.62 for
rules regarding packaging of containers (including cartons, coverings,
and cases). See part 14 of this chapter for regulations pertaining to
advertising materials.
Sec. 4.55 Language requirements.
(a) General. Mandatory information must appear in the English
language, with the exception of the brand name and except as provided
in paragraphs (c) and (d) of this section.
(b) Foreign languages. Additional statements in a foreign language,
including translations of mandatory information that appears elsewhere
in English on the label, are allowed on labels and containers as long
as they do not in any way conflict with, or contradict, the
requirements of this part.
(c) Wine for consumption in the Commonwealth of Puerto Rico.
Mandatory information may be stated solely in the Spanish language on
labels of wine bottled for consumption within the Commonwealth of
Puerto Rico.
(d) Exception for country of origin. The country or countries of
origin may appear in a language other than English when allowed by U.S.
Customs and Border Protection regulations.
Sec. 4.56 Additional information.
Information (other than mandatory information) that is truthful,
accurate, and specific, and that does not violate subpart F, G, or H of
this part, may appear on labels. Such additional information may not
conflict with, modify, qualify or restrict mandatory information in any
manner.
Subpart E--Mandatory Label Information
Sec. 4.61 What constitutes a label for purposes of mandatory
information.
(a) Label. Certain information as outlined in Sec. 4.63, must
appear on a label. When used in this part for purposes of determining
where mandatory information must appear, the term ``label'' includes:
(1) Material affixed to the container, whether made of paper,
plastic film, or other matter;
(2) For purposes of the net contents statement and the name and
address statement only, information blown, embossed, or molded into the
container as part of the process of manufacturing the container;
(3) Information etched, engraved, sandblasted, or otherwise carved
into the surface of the container; and
(4) Information branded, stenciled, painted, printed, or otherwise
directly applied onto the surface of the container.
(b) Information appearing elsewhere on the container. Information
appearing on the following parts of the container is subject to all of
the restrictions and prohibitions set forth in subparts F, G, and H of
this part, but will not satisfy any requirements for mandatory
information that must appear on labels in this part:
(1) Material affixed to, or information appearing on, the bottom
surface of the container;
(2) Caps, corks, or other closures unless authorized to bear
mandatory information by the appropriate TTB officer; and
(3) Foil or heat shrink bottle capsules.
(c) Materials not firmly affixed to the container. Any materials
that accompany the container to the consumer but are not firmly affixed
to the container, including booklets, leaflets, and hang tags, are not
``labels'' for purposes of this part. Such materials are instead
subject to the advertising regulations in part 14 of this chapter.
Sec. 4.62 Packaging (cartons, coverings, and cases).
(a) General. The term ``packaging'' includes any covering, carton,
case, carrier, or other packaging of wine containers used for sale at
retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Prohibition. Any packaging of wine containers may not contain
any statement, design, device, or graphic, pictorial, or emblematic
representation that violates the provisions of subpart F, G, or H of
this part.
(c) Requirements for closed packaging. If containers are enclosed
in closed packaging, including sealed opaque coverings, cartons, cases,
carriers, or other packaging used for sale at retail, such packaging
must bear all mandatory label information required on the label under
Sec. 4.63.
(1) Packaging is considered closed if the consumer must open, rip,
untie, unzip, or otherwise manipulate the package to remove the
container in order to view any of the mandatory information.
(2) Packaging is not considered closed if a consumer could view all
of the mandatory information on the container by merely lifting the
container up, or if the packaging is transparent or designed in a way
that all of the mandatory information can be easily read by the
consumer without having to open, rip, untie, unzip, or otherwise
manipulate the package.
(d) Packaging that is not closed. The following requirements apply
to packaging that is not closed.
(1) The packaging may display any information that is not in
conflict with the label on the container that is inside the packaging.
(2) If the packaging displays a brand name, it must display the
brand name in its entirety. For example, if a brand name is required to
be modified with additional information on the container, the packaging
must also display the same modifying language.
(3) If the packaging displays a class or type designation, it must
be identical to the class or type designation appearing on the
container. For example, if the packaging displays a class or type
designation for a specialty product for which a statement of
composition is required on the container, the packaging must include
the statement of composition as well.
(e) Labeling of containers within the packaging. The container
within the packaging is subject to all labeling requirements of this
part, including mandatory labeling information requirements, regardless
of whether the packaging bears such information.
Sec. 4.63 Mandatory label information.
(a) Mandatory information. Wine containers must bear a label or
labels (as defined in Sec. 4.61(a)) containing the following
information:
(1) Brand name in accordance with Sec. 4.64;
(2) Class, type, or other designation, in accordance with subpart I
of this part;
(3) Alcohol content, in accordance with Sec. 4.65;
(4) A statement of the origin and percentage by volume of imported
wine on blends of American and imported wine, if any reference is made
to the presence of imported wine on the container;
(5) Name and address of the bottler or importer, in accordance with
Sec. 4.66, Sec. 4.67, or Sec. 4.68 as applicable; and
(6) Net contents (which may be blown, embossed, or molded into the
container as part of the process of manufacturing the container) in
accordance with Sec. 4.70.
[[Page 60623]]
(b) Appellations of origin. An appellation of origin in accordance
with Sec. Sec. 4.88 through 4.91 of this part must be stated on the
label of each container in the same field of vision as the class, type,
or other designation prescribed by paragraph (a)(2) of this section if:
(1) A grape wine is labeled with a class, type or other designation
pursuant to Sec. 4.62(a)(2) that is:
(i) A varietal (grape type), as provided for in Sec. 4.156;
(ii) A type designation of varietal significance, as provided in
Sec. 4.157;
(iii) A semi-generic type designation, as provided in Sec. 4.184;
or
(2) The wine is labeled with a vintage date, pursuant to Sec.
4.95.
(c) Disclosure of certain ingredients. Certain ingredients must be
declared on a label, without the inclusion of any additional
information as part of the statement, as follows:
(1) FD&C Yellow No. 5. If a wine contains the coloring material
FD&C Yellow No. 5, the label must include a statement to that effect,
such as ``''FD&C Yellow No. 5'' or ``Contains FD&C Yellow No. 5.''
(2) Cochineal extract or carmine. If a wine contains the color
additive cochineal extract or the color additive carmine, the label
must include a statement to that effect, using the respective common or
usual name (such as, ``contains cochineal extract'' or ``contains
carmine''). This requirement applies to labels when either of the
coloring materials is used in wine that is removed from bottling
premises or from customs custody on or after April 16, 2013.
(3) Sulfites. If a wine contains 10 or more parts per million of
sulfur dioxide or other sulfiting agent measured as total sulfur
dioxide, the label must include a statement to that effect. Examples of
acceptable statements are ``Contains sulfites'' or ``Contains (a)
sulfiting agent(s)'' or a statement identifying the specific sulfiting
agent. The alternative terms ``sulphites'' or ``sulphiting'' may be
used.
(4) Aspartame. If the wine contains aspartame, the label must
include the following statement, in capital letters, separate and apart
from all other information: ``PHENYLKETONURICS: CONTAINS
PHENYLALANINE.''
Sec. 4.64 Brand name.
(a) Requirement. The wine label must include a brand name. If the
wine is not sold under a brand name, the name of the bottler or
importer, as applicable, appearing in the name and address statement is
treated as the brand name.
(b) Misleading brand names. Labels may not include any misleading
brand names. A brand name is misleading if it creates (by itself or in
association with other printed or graphic matter) any erroneous
impression or inference as to the age, origin, identity, or other
characteristics of the wine. A brand name may be found to be misleading
by itself or in association with other printed or graphic matter. With
the exception of geographic brand names discussed in paragraph (c) of
this section, a brand name that would otherwise be misleading may be
qualified with the word ``brand'' or with some other qualification that
adequately dispels any misleading impression that might otherwise be
created.
(c) Geographic brand names. (1) Except as otherwise provided in
paragraph (c)(2) of this section, a wine container may not bear a brand
name of viticultural significance unless the wine meets the appellation
of origin requirements for the geographic area named. (See Sec. Sec.
4.88-4.91 and Sec. Sec. 4.96-4.98 for the appellation of origin
requirements.)
(2) For brand names of viticultural significance used in COLAs
issued prior to July 7, 1986, such a brand name may appear on a wine
container if:
(i) The wine meets the appellation of origin requirements for the
geographic area named;
(ii) The wine is labeled with an appellation of origin, in
accordance with Sec. Sec. 4.88-4.91 and Sec. Sec. 4.96-4.98, that is:
(A) A county or a viticultural area, if the brand name bears the
name of a geographic area smaller than a State; or
(B) A State, county, or a viticultural area, if the brand name
bears a State name; or
(iii) The wine is labeled with some other statement that the
appropriate TTB officer finds to be sufficient to dispel the impression
that the geographic area suggested by the brand name is indicative of
the origin of the wine.
(3) A name has viticultural significance when it is the name of a
State or county (or of the foreign equivalent of a State or county),
when it is approved as the name of a viticultural area under part 9 of
this chapter, when it is approved by a foreign government, or when it
is found to have viticultural significance by the appropriate TTB
officer. Unless determined otherwise by the appropriate TTB officer, a
name that is a county name will be considered to have viticultural
significance only when the word ``county'' follows the name. For
example, while ``Clark County'' has viticultural significance, the word
``Clark'' does not.
Sec. 4.65 Alcohol content.
(a) General. In the case of wine containing 14 percent or less of
alcohol by volume, the percentage of alcohol by volume must be stated
unless the type designation ``table'' wine (or ``light'' wine) appears
on the label. In the case of wines containing more than 14 percent of
alcohol by volume, the percentage of alcohol by volume must be stated.
Mandatory and optional statements of alcohol content as a percentage of
alcohol by volume must be made as prescribed in paragraph (b) or (c) of
this section. Other truthful, accurate, and specific factual
representations of alcohol content, such as alcohol by weight, may be
made, as long as they appear together with, and as part of, the
statement of alcohol content as a percentage of alcohol by volume.
(b) Format of the alcohol content statement--(1) General. Except as
provided in paragraph (c) of this section, the alcohol by volume
statement must be expressed in one of the following formats:
(i) ``Alcohol __ percent by volume'';
(ii) ``__ percent alcohol by volume''; or
(iii) ``Alcohol by volume: __ percent''.
(2) Formatting rules. Any of the words or symbols may be enclosed
in parentheses and authorized abbreviations may be used with or without
a period. The alcohol content statement does not have to appear with
quotation marks.
(3) Optional abbreviations. The statements listed in paragraph (b)
of this section must appear as shown, except that the following
abbreviations may be used: Alcohol may be abbreviated as ``alc'';
percent may be represented by the percent symbol ``%''; alcohol and
volume may be separated by a slash ``/'' in lieu of the word ``by'';
and volume may be abbreviated as ``vol.''
(4) Examples. The following are examples of alcohol content
statements that comply with the requirements of this part:
(i) ``13.2% alc/vol'';
(ii) ``Alc. 13.0 percent by vol.'';
(iii) ``Alc 13% by vol''; and
(iv) ``15.0% Alcohol by Volume.''
(c) Use of a range as the alcohol content statement--(1) General.
The alcohol content statement may be expressed as a range in accordance
with the provisions of paragraph (c)(2) of this section. For wine
containing 14 percent alcohol by volume or less, the alcohol content
may be stated as a range of three percentage points. For wine
containing more than 14 percent alcohol by volume
[[Page 60624]]
the alcohol content may be stated as a range of two percentage points.
(2) Format of the alcohol content statement using a range. If the
alcohol content statement is expressed as a range, it must be made in
one of the following formats:
(i) Alcohol __ percent to __ percent by volume,
(ii) __ to __ percent alcohol by volume, or
(iii) Alcohol by volume: __ to __ percent.
(3) Optional marks. Any of the words or symbols may be enclosed in
parentheses, and authorized abbreviations may be used with or without a
period.
(4) Optional abbreviations. Alcohol may be abbreviated as ``alc'';
percent may be represented by the percent symbol ``%''; alcohol and
volume may be separated by a slash ``/'' in lieu of the word ``by'';
the two alcohol content numbers may be separated by a dash ``-''
instead of the word ``to''; and volume may be abbreviated by ``vol''.
(5) Examples. The following are examples of alcohol content
statements that comply with the requirements of this part: ``10 to 12
percent alcohol by volume,'' ``10-12% (alc) by volume,'' and ``10 to 12
percent alc./vol.''
(d) Tolerances for wine containing no more than 14 percent alcohol
by volume. For specific statements of alcohol content for wines
containing no more than 14 percent alcohol by volume, except as
provided for in paragraph (f) of this section, the alcohol by volume
statement on the label must be within 1.5 percentage points above or
below the actual alcohol content. For example, an alcohol beverage with
an actual alcohol content of 10 percent alcohol by volume would comply
with this tolerance if it were labeled with an alcohol content
statement between 8.5 and 11.5 percent alcohol by volume.
(e) Alcohol content statement tolerances for wine containing more
than 14 percent alcohol by volume. For specific numeric statements of
alcohol content for wines containing more than 14 percent alcohol by
volume, except as provided for in paragraph (f) of this section, the
alcohol by volume statement on the label must be within one percentage
point above or below the actual alcohol content. For example, an
alcohol beverage with an actual alcohol content of 16 percent alcohol
by volume would comply with this tolerance if it were labeled with an
alcohol content statement between 15 and 17 percent alcohol by volume.
(f) Tolerances must not cut across tax classes--(1) General.
Regardless of the type of statement used and regardless of tolerances
normally permitted in direct statements, and ranges normally permitted
in maximum and minimum statements, alcohol content statements must
correctly indicate the tax class of the wine so labeled. Nothing in
this section shall be construed as authorizing the appearance upon the
labels of any wine of an alcohol content statement in terms of maximum
and minimum percentages that overlaps a prescribed limitation on the
alcohol content of any tax class.
(2) Tax classes and certain class and type designations. The
tolerances set forth in this section shall not apply where a minimum or
maximum alcohol content requirement is set forth in either a tax
classification of the product (found in 26 U.S.C. 5041) or a class or
type designation in this part that reflects a minimum or maximum
alcohol content requirement consistent with limits set forth in a tax
class. For example, the class designation for ``table wine'' in this
part includes a maximum alcohol content of 14 percent alcohol by
volume, which is consistent with the maximum alcohol content for a
class of still wines under 26 U.S.C. 5041(b)(1). Thus, a still grape
wine that contains 14.2 percent alcohol by volume may not be labeled as
either a ``table wine'' or with an alcohol content of 14 percent or
less, regardless of the tolerance prescribed in this section.
Sec. 4.66 Name and address for domestically bottled wine that was
wholly fermented in the United States.
(a) General. Domestically bottled wine that was wholly fermented in
the United States and contains no imported wine must be labeled in
accordance with this section. (See Sec. Sec. 4.67 and 4.68 for name
and address requirements applicable to wine that is not wholly
fermented in the United States.)
(b) Mandatory statement. The label on containers must state the
name of the bottler and the city and State where bottled, preceded by
the phrases ``bottled by,'' ``canned by,'' ``packed by,'' or ``filled
by,'' followed by the name of the bottler and the place where bottled.
(c) Optional statements. In addition to the statement required by
paragraph (b) of this section, the label may also:
(1) State the name and address of any other person for whom the
wine was bottled, immediately preceded by the words ``bottled for''
``canned for,'' ``packed for,'' or ``filled for'' or ``distributed
by'';
(2) Contain additional words, as specified and defined in
paragraphs (d) through (f) of this section. The use of two or more of
these words with the conjunction ``and'' and the use of any of these
words with the words ``bottled by'' ``canned by,'' ``packed by,'' or
``filled by'' is permissible only if the same person performed the
defined operation at the same address. More than one name statement
must appear if the defined operation was performed by a person other
than the bottler, and more than one address statement must appear if
the defined operation was performed at a different address.
(d) Produced or Made. The terms ``Produced'' or ``Made'' mean that
the named winery:
(1) Fermented not less than 75 percent of the wine at the stated
address, or
(2) Changed the class or type of the wine by addition of wine
spirits, brandy, flavors, colors, or artificial carbonation at the
stated address, or
(3) Produced sparkling wine by secondary fermentation at the stated
address,
(e) Blended. The term ``Blended'' means that the named winery mixed
the wine with other wines of the same class and type at the stated
address,
(f) Cellared, Vinted, and Prepared. The terms ``Cellared,''
``Vinted'' and ``Prepared'' mean that the named winery, at the stated
address, subjected the wine to cellar treatment in accordance with
Sec. 4.154(c) of this part.
(g) Use of trade name. (1) A trade name that appears on the basic
permit or other qualifying documentation may be used only if the use of
that name would not create a misleading impression as to the age,
origin, or identity of the product. For example, when a bottler
authorizes the use of its trade name by another bottler that is not
under the same ownership, that trade name may not be used on a label in
a way that tends to mislead consumers as to the identity or location of
the bottler.
(2) If the same brand of wine is bottled by two bottlers that are
not under the same ownership, and each has adopted the same trade name
on its basic permit pursuant to a contractual arrangement, the name and
address statement must be worded in such a way that the label does not
create a misleading impression as to the identity or location of the
bottling winery or taxpaid wine bottling house.
(h) Form of address. (1) The address consists of the city and State
where the referenced activity occurred, and must be consistent with the
address reflected on the basic permit or other qualifying documentation
of the premises where the activity occurred. Addresses may, but are not
required to, include additional information such as street names,
counties, zip codes, phone numbers, and website addresses.
[[Page 60625]]
(2) The address for each activity that is designated on the label
must also be shown. An example for a wine produced in the United States
would be ``Produced at Gilroy, California, and bottled at San Mateo,
California, by XYZ Winery.''
(3) No additional places or addresses may be stated for the same
person unless:
(i) That person is actively engaged in the conduct of an additional
bona fide and actual alcohol beverage business at such additional place
or address, and
(ii) The label also contains immediately adjacent to the address
appropriate descriptive material indicating the function occurring at
each additional place or address in connection with the particular
product.
(4) The postal abbreviation of the State name may be used; for
example, California may be abbreviated as CA.
Sec. 4.67 Name and address for domestically bottled wine that was
bottled after importation.
(a) General. This section applies to domestically bottled wine that
was bottled after importation. See Sec. 4.68 for name and address
requirements applicable to imported wine that is imported in a
container. See 19 CFR parts 102 and 134 for U.S. Customs and Border
Protection country of origin marking requirements.
(b) Domestically bottled wine that was produced, made, or blended
in the United States. Domestically bottled wine that was produced,
made, or blended (in accordance with the definitions set forth in Sec.
4.66) in the United States after the wine (or a wine in a blend of
wines) was imported must be labeled in accordance with the rules set
forth in Sec. 4.66 regarding mandatory and optional labeling
statements.
(c) Wine bottled after importation without blending or production
activities. The label on wine that is bottled in the United States
after importation without being produced, made or blended (in
accordance with the definitions set forth in Sec. 4.66) in the United
States after the wine was imported must state must state the words
``imported by'' or a similar appropriate phrase, followed by the name
and address of the importer. The label must also state the words
``bottled by'' or ``packed by,'' followed by the name and address of
the bottler, except that the following phrases are acceptable in lieu
of the name and address of the bottler under the circumstances set
forth below:
(1) If the wine was bottled for the person responsible for the
importation, the words ``imported by and bottled (canned, packed, or
filled) in the United States for'' (or a similar appropriate phrase)
followed by the name and address of the principal place of business in
the United States of the person responsible for the importation; or
(2) If the wine was bottled by the person responsible for the
importation, the words ``imported and bottled by'' followed by the name
and address of the principal place of business in the United States of
the person responsible for the importation.
(3) In the situations set forth in paragraphs (c)(1) and (2) of
this section, the address shown on the label may be that of the
principal place of business of the importer who is also the bottler,
provided that the address shown is a location where bottling takes
place.
(d) Use of trade name. (1) A trade name that appears on the basic
permit or other qualifying documentation may be used only if the use of
that name would not create a misleading impression as to the age,
origin, or identity of the product. For example, when a bottler
authorizes the use of its trade name by another bottler that is not
under the same ownership, that trade name may not be used on a label in
a way that tends to mislead consumers as to the identity or location of
the bottler.
(2) If the same brand of wine is bottled by two bottlers that are
not under the same ownership, and each has adopted the same trade name
on its basic permit pursuant to a contractual arrangement, the name and
address statement must be worded in such a way that the label does not
create a misleading impression as to the identity or location of the
bottling winery or taxpaid wine bottling house.
(e) Form of address. (1) The address consists of the city and State
where the referenced activity occurred, and must be consistent with the
address reflected on the basic permit or other qualifying documentation
of the premises where the activity occurred. Addresses may, but are not
required to, include additional information such as street names,
counties, zip codes, phone numbers, and website addresses.
(2) The postal abbreviation of the State name may be used; for
example, California may be abbreviated as CA.
Sec. 4.68 Name and address for wine that was imported in a
container.
(a) General. This section applies to wine that is imported in a
container, as defined in Sec. 4.1 of this part. See Sec. 4.67 for
rules regarding name and address requirements applicable to wine that
is domestically bottled after importation. See 19 CFR parts 102 and 134
for U.S. Customs and Border Protection country of origin marking
requirements.
(b) Mandatory labeling statement. The labels on wines imported in
containers, as defined in Sec. 4.1, must state the words ``imported
by'' or a similar appropriate phrase and, immediately thereafter, the
name and address of the importer.
(1) For purposes of this section, the importer is the holder of the
importer's basic permit that either makes the original Customs entry or
is the person for which such entry is made, or the holder of the
importer's basic permit that is the agent, distributor, or franchise
holder for the particular brand of imported alcohol beverages and that
places the order abroad.
(2) The address of the importer must be stated as the city and
State of the principal place of business and must be consistent with
the address reflected on the importer's basic permit. Addresses may,
but are not required to, include additional information such as street
names, counties, zip codes, phone numbers, and website addresses. The
postal abbreviation of the State name may be used; for example,
California may be abbreviated as CA.
(c) Wine bottled in a foreign country other than the country of
origin. If the wine was blended, bottled or packed in a foreign country
other than the country of origin, and the label identifies the country
of origin, the label must state ``blended by,'' ``bottled by,'' or
other appropriate statement, followed by the name of the blender or
bottler and the place where the wine was blended, bottled or packed.
(d) Optional statements. In addition to the statements required by
paragraph (a)(1) of this section, the label may also state the name and
address of the principal place of business of the foreign producer.
Other words, or their English-language equivalents, denoting winemaking
operations may be used in accordance with the requirements of the
country of origin, for wines sold within the country of origin for home
consumption.
(e) Form of address. The ``place'' stated must be the city and
State, shown on the basic permit or other qualifying document, of the
premises at which the operations took place; and the place for each
operation that is designated on the label must be shown.
(2) The postal abbreviation of the State name may be used; for
example, California may be abbreviated as CA.
(f) Trade or operating names. A trade name may be used if the trade
name is listed on the basic permit or other qualifying documentation
and if its use on the label would not create any
[[Page 60626]]
misleading impression as to the age, origin, or identity of the
product.
Sec. 4.69 Country of origin.
(a) Pursuant to U.S. Customs and Border Protection (CBP)
regulations at 19 CFR parts 102 and 134, a country of origin statement
must appear on the container of wine imported in containers or bottled
in the United States after importation. Labeling statements with regard
to the country of origin must be consistent with CBP regulations. The
determination of the country (or countries) of origin, for imported
wines, as well as for blends of imported wine with domestically
fermented wine, must comply with CBP regulations.
(b) It is the responsibility of the importer or bottler, as
appropriate, to ensure compliance with the country of origin marking
requirement, both when wine is imported in containers and when imported
wines are subject to bottling, blending, or production activities in
the United States. Industry members may seek a ruling from CBP for a
determination of the country of origin for their product.
Sec. 4.70 Net contents.
The requirements of this section apply to the net contents
statement required by Sec. 4.63.
(a) Standard containers. The net contents for wine for which a
standard of fill is prescribed in Sec. 4.203 must be stated in the
same manner and form as specified in the standard of fill.
(b) Aggregately packaged containers--(1) External containers. The
net contents of the external container for wine packaged in an
aggregate package under the provisions of Sec. 4.214 must be stated in
accordance with that section.
(2) Internal containers. The net contents for the internal
containers of an aggregate package must be stated in milliliters.
(c) Wine not subject to standards of fill. The net contents of wine
that is not subject to standards of fill prescribed in Sec. 4.203,
under the rules set forth in Sec. 4.201(b), must be stated as follows:
(1) If the container has a capacity of more than one liter, the net
contents must be stated in liters and in decimal portions of a liter
accurate to the nearest one-hundredth of a liter; and
(2) If the container has a capacity of less than one liter, the net
contents shall be stated in milliliters.
(d) Optional statement of U.S. equivalent net contents. Net
contents in U.S. equivalents may appear on a label along with the
required metric net contents statement. If used, the U.S. equivalent
volume must be shown as follows:
(1) For the metric standards of fill:
(i) 3 liters (101 fl. oz.);
(ii) 1.5 liters (50.7 fl. oz.);
(iii) 1 liter (33.8 fl. oz.);
(iv) 750 mL (25.4 fl. oz.);
(v) 500 mL (16.9 fl. oz.);
(vi) 375 mL (12.7 fl. oz.);
(vii) 187 mL (6.3 fl. oz.);
(viii) 100 mL (3.4 fl. oz.); and
(ix) 50 mL (1.7 fl. oz.).
(2) If the container is exempt from a standard of fill as described
in paragraph (c) of this section:
(i) Equivalent volumes of less than 100 fluid ounces must be stated
in fluid ounces, accurate to the nearest one-tenth of a fluid ounce,
for example: 600 mL (20.3 fl. oz.); and
(ii) Equivalent volumes of 100 fluid ounces or more must be stated
in fluid ounces only, accurate to the nearest whole fluid ounce, for
example: 6 liters (203 fl. oz.).
(e) Tolerances. A statement of net contents must indicate the exact
volume of wine in the container, except that the following tolerances
shall be allowed:
(1) Discrepancies due exclusively to errors in measuring that occur
in filling conducted in compliance with good commercial practice;
(2) Discrepancies due exclusively to differences in the capacity of
containers, resulting solely from unavoidable difficulties in
manufacturing the containers so as to be of uniform capacity, provided
that the discrepancy does not result from a bottle design that prevents
the manufacture of bottles of an approximately uniform capacity; and
(3) Discrepancies in measure due to differences in atmospheric
conditions in various places, including discrepancies resulting from
the ordinary and customary exposure of alcohol beverages in containers
to evaporation, provided that the discrepancy is determined to be
reasonable on a case-by-case basis.
Subpart F--Restricted Labeling Statements
Sec. 4.81 General.
(a) Application. The labeling practices, statements, and
representations in this subpart may be used on wine labels only when
used in compliance with this subpart. In addition, if any of the
practices, statements, or representations in this subpart are used
elsewhere on containers or in packaging, they must comply with the
requirements of this subpart. For purposes of this subpart:
(1) The term ``label'' includes all labels on wine containers on
which mandatory information may appear, as set forth in Sec. 4.61(a),
as well as any other label on the container.
(2) The term ``container'' includes all parts of the wine
container, including any part of a wine container on which mandatory
information may appear, as well as those parts of the container on
which information does not satisfy mandatory labeling requirements, as
set forth in Sec. 4.61(b).
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering or other packaging of such containers used for sale
at retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of this subpart, the
term ``statement or representation'' includes any statement, design,
device, or representation, and includes pictorial or graphic designs or
representations as well as written ones. The term ``statement or
representation'' includes explicit and implicit statements and
representations.
Food Allergen Labeling
Sec. 4.82 Voluntary disclosure of major food allergens.
(a) Definitions. For purposes of this section, the following terms
or phrases have the meanings indicated.
(1) Major food allergen means any of the following:
(i) Milk, egg, fish (for example, bass, flounder, or cod),
Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts
(for example, almonds, pecans, or walnuts), wheat, peanuts, and
soybeans; or
(ii) A food ingredient that contains protein derived from a food
specified in paragraph (a)(1)(i) of this section, except:
(A) Any highly refined oil derived from a food specified in
paragraph (a)(1)(i) of this section and any ingredient derived from
such highly refined oil; or
(B) A food ingredient that is exempt from major food allergen
labeling requirements pursuant to a petition for exemption approved by
the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or
pursuant to a notice submitted to the FDA under 21 U.S.C. 343(w)(7),
provided that the food ingredient meets the terms or conditions, if
any, specified for that exemption.
(2) Name of the food source from which each major food allergen is
derived. ``Name of the food source from which each major food allergen
is
[[Page 60627]]
derived'' means the name of the food as listed in paragraph (a)(1)(i)
of this section, except that:
(i) In the case of a tree nut, it means the name of the specific
type of nut (for example, almonds, pecans, or walnuts);
(ii) In the case of Crustacean shellfish, it means the name of the
species of Crustacean shellfish (for example, crab, lobster, or
shrimp); and
(iii) The names ``egg'' and ``peanuts,'' as well as the names of
the different types of tree nuts, may be expressed in either the
singular or plural form, and the names ``soy,'' ``soybean,'' or
``soya'' may be used instead of ``soybeans.''
(b) Voluntary labeling standards. Major food allergens used in the
production of a wine product may, on a voluntary basis, be declared on
a label or container. However, if any one major food allergen is
voluntarily declared, all major food allergens used in production of
the wine product, including major food allergens used as fining or
processing agents, must be declared, except when covered by a petition
for exemption approved by the appropriate TTB officer under Sec. 4.83.
The major food allergens declaration must consist of the word
``Contains'' followed by a colon and the name of the food source from
which each major food allergen is derived (for example, ``Contains:
egg'').
(c) Cross reference. For mandatory labeling requirements applicable
to wine products containing FD&C Yellow No. 5, sulfites, aspartame, and
cochineal extract or carmine, see Sec. 4.63(b).
Sec. 4.83 Petitions for exemption from major food allergen labeling.
(a) Submission of petition. Any person may petition the appropriate
TTB officer to exempt a particular product or class of products from
the labeling requirements of Sec. 4.82. The burden is on the
petitioner to provide scientific evidence (as well as the analytical
method used to produce the evidence) that demonstrates that the
finished product or class of products, as derived by the method
specified in the petition, either:
(1) Does not cause an allergic response that poses a risk to human
health; or
(2) Does not contain allergenic protein derived from one of the
foods identified in Sec. 4.82(a)(1)(i), even though a major food
allergen was used in production.
(b) Decision on petition. TTB will approve or deny a petition for
exemption submitted under paragraph (a) of this section in writing
within 180 days of receipt of the petition. If TTB does not provide a
written response to the petitioner within that 180-day period, the
petition will be deemed denied, unless an extension of time for
decision is mutually agreed upon by the appropriate TTB officer and the
petitioner. TTB may confer with the Food and Drug Administration (FDA)
on petitions for exemption, as appropriate and as FDA resources permit.
TTB may require the submission of product samples and other additional
information in support of a petition; however, unless required by TTB,
the submission of samples or additional information by the petitioner
after submission of the petition will be treated as the withdrawal of
the initial petition and the submission of a new petition. An approval
or denial under this section will constitute final agency action.
(c) Resubmission of a petition. After a petition for exemption is
denied under this section, the petitioner may resubmit the petition
along with supporting materials for reconsideration at any time. TTB
will treat this submission as a new petition.
(d) Availability of information--(1) General. TTB will promptly
post to its website, https://www.ttb.gov, all petitions received under
this section, as well as TTB's responses to those petitions. Any
information submitted in support of the petition that is not posted to
the TTB website will be available to the public pursuant to the Freedom
of Information Act (5 U.S.C. 552), except where a request for
confidential treatment is granted under paragraph (d)(2) of this
section.
(2) Requests for confidential treatment of business information. A
person who provides trade secrets or other commercial or financial
information in connection with a petition for exemption under this
section may request that TTB give confidential treatment to that
information. A failure to request confidential treatment at the time
the information in question is submitted to TTB will constitute a
waiver of confidential treatment. A request for confidential treatment
of information under this section must conform to the following
standards:
(i) The request must be in writing;
(ii) The request must clearly identify the information to be kept
confidential;
(iii) The request must relate to information that constitutes trade
secrets or other confidential commercial or financial information
regarding the business transactions of an interested person, the
disclosure of which would cause substantial harm to the competitive
position of that person;
(iv) The request must set forth the reasons why the information
should not be disclosed, including the reasons the disclosure of the
information would prejudice the competitive position of the interested
person; and
(v) The request must be supported by a signed statement by the
interested person, or by an authorized officer or employee of that
person, certifying that the information in question is a trade secret
or other confidential commercial or financial information and that the
information is not already in the public domain.
Production Claims
Sec. 4.84 Use of the term ``organic.''
Use of the term ``organic'' is permitted if any such use complies
with United States Department of Agriculture (USDA) National Organic
Program rules (7 CFR part 205), as interpreted by the USDA.
Sec. 4.85 Environmental, sustainability, and similar statements.
Statements related to environmental or sustainable agricultural
practices, social justice principles, and other similar statements
(such as, ``Produced using 100% solar energy'' or ``Carbon Neutral'')
may appear as long as the statements are truthful, specific, and not
misleading. Statements or logos indicating environmental, sustainable
agricultural, or social justice certification (such as, ``Biodyvin,''
``Salmon-Safe,'' or ``Fair Trade Certified'') may appear on wines that
are actually certified by the appropriate organization.
Sec. 4.86 Use of TTB permit numbers on labels.
Wine labels, containers, and packaging may bear TTB issued permit
numbers as long as those permit numbers are located immediately
adjacent to the name and address of the person operating the bonded
wine cellar or winery. No additional reference may be made that may
convey the impression that the wine was made or matured under
government supervision or in accordance with government standards.
Sec. 4.87 Use of vineyard, orchard, farm, or ranch name as a claim
or as additional information.
(a) General. Except as provided in paragraph (b) of this section,
the name of a vineyard, orchard, farm, or ranch may not appear on a
wine label, container, or packaging unless 95 percent of the wine in
the container is produced from primary winemaking material grown on the
named vineyard, orchard, farm, or ranch.
(b) Exception. (1) A vineyard, orchard, farm, or ranch name may be
used without complying with the
[[Page 60628]]
requirements of paragraph (a) of this section if the vineyard, orchard,
farm, or ranch name is part of an operating name or trade name that
appears in the mandatory name and address statement. In such a case,
the vineyard, orchard, farm, or ranch name that appears in the name and
address statement may also appear in the brand name, as long as use of
the name does not make a claim as to the origin of the winemaking
materials.
(2) Vineyard, orchard, farm, or ranch name having geographic
significance. When used in a brand name, a vineyard, orchard, farm, or
ranch name having geographical or viticultural significance is subject
to the requirements of Sec. 4.64(b) and (c).
Appellations of Origin for Grape Wine
Sec. 4.88 Appellations of origin for grape wine in general.
(a) General. An appellation of origin for grape wine is the name of
a place where grapes used to produce a specified minimum percentage of
wine for still grape wine, sparkling grape wine, and carbonated grape
wine were grown. The requirements in this section and Sec. Sec. 4.89
through 4.91 apply to the use of appellations of origin. All parts of
the appellation must be in the same type size and immediately adjacent
to each other.
(b) Definition of ``appellation of origin'' for American wine. An
American appellation of origin is the name (or names) of:
(1) (The) United States or America (American);
(2) A State;
(3) Two or three States;
(4) A county (which must be identified with the word ``county'' or
other appropriate term for a county equivalent, where applicable,
printed in the same font and type size as the name of the county);
(5) Two or three counties in the same State; or
(6) A viticultural area (as defined in Sec. 4.91).
(c) Definition of appellation of origin for imported wine. An
appellation of origin for imported wine is the name (or names) of:
(1) A country;
(2) A state, province, territory, or similar political subdivision
of a country equivalent to a state or county;
(3) Two or three states, provinces, territories, or similar
political subdivisions of a country equivalent to a state;
(4) Two or three counties; or
(5) A viticultural area (as defined in Sec. 4.91).
(d) When an appellation of origin must be used. An appellation of
origin in accordance with Sec. Sec. 4.88 through 4.91, disclosing the
true place of origin of the wine, must appear if:
(1) A varietal (grape type) designation is used as provided in
Sec. 4.156;
(2) A type designation of varietal significance is used as provided
in Sec. 4.157;
(3) A semi-generic type designation is used as the class and type
designation of the wine, as provided in Sec. 4.174;
(6) The wine is labeled with a vintage date, and otherwise conforms
with the provisions of Sec. 4.95.
Sec. 4.89 Eligibility for the use of an appellation of origin for
grape wine.
(a) Appellations of origin for American wine. An American wine is
entitled to use the name of a single county, State, or country (the
United States or America[n]) as an appellation of origin if:
(1) At least 75 percent of the volume of wine is derived from
grapes grown in the named county, State or country;
(2) The wine has been fully finished (as defined in Sec. 4.1):
(i) In the United States, if labeled ``[the] United States'' or
``America[n]'';
(ii) Within the labeled State or an adjacent State if labeled with
a State appellation; or
(iii) Within the State in which the labeled county is located, if
labeled with a county appellation; and
(3) The wine conforms to the laws and regulations of the named
appellation area that govern the composition, method of production, and
designation of wines made in such area.
(b) Appellations of origin for imported wine. An imported wine is
entitled to use the name of a single country or a single State,
province, territory, or similar political subdivision of a country
equivalent to a state or county as an appellation of origin if:
(1) At least 75 percent of the volume of the wine is derived from
grapes grown in the area indicated by the appellation of origin; and
(2) The wine conforms to the requirements of the foreign laws and
regulations that govern the composition, method of production, and
designation of wines available for consumption within the country of
origin.
Sec. 4.90 Multicounty and multistate appellations of origin for
grape wine.
(a) Multicounty appellations of origin for American wine. An
appellation of origin comprising the names of two or three counties in
the same State may be used if:
(1) At least 85 percent of the volume of the wine is derived from
grapes grown in the counties included in the appellation;
(2) The wine derived from grapes grown in each county included in
the appellation is in greater proportion than wine derived from grapes
grown in any county that is not listed; and
(3) The counties must be listed in descending order of
predominance, based on the percentage of wine derived from grapes grown
in each county.
(b) Multicounty appellations of origin for imported wine. An
appellation of origin comprising the names of two or three states,
provinces, territories, or similar political subdivisions of a country
equivalent to a county, all of which are in the same country, may be
used if:
(1) At least 85 percent of the volume of the wine is derived from
grapes grown in the counties included in the appellation;
(2) The wine derived from grapes grown in each county included in
the appellation is in greater proportion than wine derived from grapes
grown in any county that is not listed;
(3) The counties must be listed in descending order of
predominance, based on the percentage of wine derived from grapes grown
in each county; and
(4) The wine conforms to the requirements of the foreign laws and
regulations that govern the composition, method of production, and
designation of wines available for consumption within the country of
origin.
(c) Multistate appellations of origin for American wine. An
appellation of origin comprising the names of two or three States may
be used if:
(1) At least 85 percent of the volume of the wine is derived from
grapes grown in the States included in the appellation;
(2) The wine derived from grapes grown in each State included in
the appellation is in greater proportion than wine derived from grapes
grown in any State that is not listed;
(3) The States are listed in a descending order of predominance,
based on the percentage of wine derived from grapes grown in each
State;
(4) The wine has been fully finished (as defined in Sec. 4.1) in
one of the labeled States; and
(5) The wine conforms to the laws and regulations that govern the
composition, method of manufacture, and designation of wines in all of
the States listed in the appellation.
(d) Multistate appellations of origin for imported wine. An
appellation of origin comprising the names of two or three states,
provinces, territories, or similar political subdivisions of a country
equivalent to a state, all of
[[Page 60629]]
which are in the same country, may be used if:
(1) At least 85 percent of the volume of the wine is derived from
grapes grown in the states, provinces, territories, or similar
political subdivisions of a country equivalent to a state that are
included in the appellation;
(2) The wine derived from grapes grown in each state, province,
territory, or similar political subdivision included in the appellation
is in greater proportion than wine derived from grapes grown in any
such area not listed on the label;
(3) The states, provinces, territories, or similar political
subdivisions are listed in a descending order of predominance, based on
the percentage of wine derived from grapes grown in each; and
(4) The wine conforms to the requirements of the foreign laws and
regulations that govern the composition, method of production, and
designation of wines available for consumption within the country of
origin.
Sec. 4.91 Viticultural areas.
(a) Definition of viticultural area for American wine. An American
viticultural area is a delimited grape-growing region having a name,
distinguishing features, and a delineated boundary as established in
part 9 of this chapter.
(b) Definition of viticultural area for imported wine. A
viticultural area for imported wine is a delimited place or region
(other than a place or region (such as a county or state) defined in
Sec. 4.88(c)(1), (2), or (3)) the boundaries of which have been
recognized and defined by the country of origin for use on labels of
wine available for consumption within the country of origin.
(c) Establishment of American viticultural areas. A petition for
the establishment of an American viticultural area may be submitted by
any interested party, pursuant to part 9 and Sec. 70.701(c) of this
chapter. The petition must be made in written form and must contain the
information specified in Sec. 9.12 of this chapter.
(d) Requirements for use. A wine may be labeled with the name of a
viticultural area if:
(1) The appellation has been approved under part 9 of this chapter
in the case of domestic wine or by the appropriate foreign government
in the case of imported wine;
(2) Not less than 85 percent of the wine is derived from grapes
grown within the boundaries of the viticultural area;
(3) In the case of foreign wine, it conforms to the requirements of
the foreign laws and regulations that govern the composition, method of
production, and designation of wines available for consumption within
the country of origin; and
(4) In the case of American wine, it has been fully finished (as
defined in Sec. 4.1) within the State, or one of the States, within
which the labeled viticultural area is located.
(e) More than one viticultural area. A wine may be labeled with
more than one viticultural area if:
(1) The indicated viticultural areas overlap; and
(2) Not less than 85 percent of the volume of the wine is derived
from grapes grown in the overlapping area.
Claims About Grape Wine
Sec. 4.92 Estate bottled.
(a) Conditions for use. The term ``Estate bottled'' may appear on a
wine label only if the wine is labeled with a viticultural area
appellation of origin and the bottling winery:
(1) Is located within the labeled viticultural area;
(2) Grew all of the grapes used to make the wine on land owned or
controlled by the winery within the boundaries of the labeled
viticultural area; and
(3) Crushed the grapes, fermented the resulting must, and fully
finished, aged, and bottled the wine in a continuous process (the wine
at no time having left the premises of the bottling winery).
(b) Special rule for cooperatives. Grapes grown by the members of a
single cooperative bottling winery are considered to be grown by the
bottling winery.
(c) Use of other terms. No term other than ``Estate bottled'' may
appear on a label to indicate combined growing and bottling conditions.
(d) Definitions. For purposes of this section, land controlled by
the winery refers to property on which the producing winery has the
legal right to perform, and does perform, all of the acts common to
viticulture under the terms of a lease or similar agreement of at least
three years duration.
Sec. 4.93 Estate grown.
(a) Conditions for use. The term ``Estate(s) grown'' may appear on
a wine label only if all of the following conditions are met:
(1) The wine is labeled with an appellation of origin;
(2) The producing winery is located within the appellation of
origin;
(3) The producing winery grew all of the grapes used to make the
wine on land owned or controlled by the producing winery within the
boundaries of the appellation of origin, and fermented 100 percent of
the wine from those grapes; and
(4) If the bottling winery is not the producing winery, the label
must clarify that the wine was ``estate grown'' by the producing
winery, and the name and address of both wineries must appear on the
label. An acceptable labeling statement would be ``Estate grown and
produced by ABC Winery, Seattle, Washington. Bottled by XYZ Winery,
Tacoma, Washington.''
(b) Special rule for cooperatives. Grapes grown by the members of a
single cooperative bottling winery are considered to be grown by the
bottling winery.
(c) Definition. For purposes of this section, land controlled by
the winery refers to property on which the producing winery has the
legal right to perform, and does perform, all of the acts common to
viticulture under the terms of a lease or similar agreement of at least
3 years duration.
Sec. 4.94 Claims on grape wine labels for viticultural practices
that result in sweet wine.
(a) General. The claims set forth in paragraphs (b) through (d) of
this section about viticultural practices that result in sweet wine may
be used on labels of grape wine subject to the rules set forth in this
section. In all such cases, the wine must also be labeled with the
amount of sugar contained in the grapes at the time of harvest and the
amount of residual sugar in the finished wine. The amount of sugar may
be stated in degrees Brix, percent by weight, grams per 100 mL or grams
per liter. Harvest or picking dates may not be stated on the label
unless the wine is labeled with a vintage date in accordance with Sec.
4.95.
(b) Ice wine. The term ``ice wine'' (or ``icewine,'' or ``ice-
wine'') may be used only to describe wines produced exclusively from
grapes that have been harvested after they have naturally frozen on the
vine. Wine that is ameliorated, concentrated, fortified, or produced
from concentrate may not be labeled as ``ice wine.'' Wine produced from
grapes that were frozen post-harvest may not be labeled as ``ice wine''
but may be labeled with a statement such as ``made from grapes frozen
post-harvest.''
(c) Late harvest or late picked. The term ``late harvest'' or
``late picked'' may not be used on the label of a wine that is
ameliorated, concentrated, fortified, or produced from concentrate.
[[Page 60630]]
(d) Botrytis Infected or Pourriture Noble. Grape wine produced from
grapes that have been infected with the botrytis cinerea mold may be
labeled with a term such as ``Botrytis Infected,'' ``Pourriture
Noble,'' or another name for infection by the botrytis cinerea mold.
Sec. 4.95 Vintage date.
(a) General. Grape wine may be labeled with the vintage date (which
is the calendar year in which the grapes used to make the wine were
harvested) only if the wine is also labeled with an appellation of
origin as defined in Sec. 4.88. The requirements in paragraphs (a)(1)
through (3) of this section apply to the use of vintage dates on
American and imported wines:
(1) If wine is labeled with a viticultural area as defined in Sec.
4.91, at least 95 percent of the wine must have been derived from
grapes harvested in the labeled calendar year.
(2) If a wine is labeled with an appellation of origin other than a
viticultural area, at least 85 percent of the wine must have been
derived from grapes harvested in the labeled calendar year.
(3) A wine may be labeled with only one vintage date.
(b) Imported wine. Imported wine may bear a vintage date if all of
the following conditions are met:
(1) The wine is made in compliance with the production standards
referenced in paragraph (a) of this section, except that the year of
harvest for an imported wine will be determined in accordance with the
laws and regulations governing vintage date labeling of wines available
for consumption within the country of origin.
(2) The wine is of the vintage shown, the laws of the country of
origin regulate the appearance of vintage dates upon the labels of wine
produced for consumption within the country of origin, the wine has
been produced in conformity with those laws, and the wine would be
entitled to bear the vintage date if it had been sold within the
country of origin. The importer of the wine imported in bottles or the
domestic bottler of wine imported in bulk and bottled in the United
States must be able to demonstrate, upon request by the appropriate TTB
officer or a customs officer, that the wine is entitled to be labeled
with the vintage date.
Appellations of Origin for Fruit Wine, Agricultural Wine, and Rice Wine
Sec. 4.96 Appellations of origin for fruit wine, agricultural wine,
and rice wine in general.
(a) General. An appellation of origin for fruit wine, agricultural
wine, or rice wine is the name of a place where the fruit (other than
grapes), agricultural products, or rice, respectively, used to produce
a specified minimum percentage of the fruit wine, agricultural wine, or
rice wine, as prescribed in subpart I of this part, are grown. In the
case of honey wine, eligibility for use of an appellation of origin is
based on the place where the source plants for the honey were grown.
The requirements in this section and Sec. Sec. 4.97 and 4.98, apply to
the use of appellations of origin. All parts of the appellation must be
in the same type size and immediately adjacent to each other.
(b) Definition of ``appellation of origin'' for American wine. An
American appellation of origin is the name (or names) of:
(1) (The) United States or America (American);
(2) A State (including the District of Columbia and the
Commonwealth of Puerto Rico);
(3) Two or no more than three States;
(4) A county (which must be identified with the word ``county'' or
other appropriate term for a county equivalent, where applicable,
printed in the same font and type size as the name of the county); or
(5) Two or no more than three counties in the same State.
(c) Definition of appellation of origin for imported wine. An
appellation of origin for imported wine is the name (or names) of:
(1) A country;
(2) A state, province, territory, or similar political subdivision
of a country equivalent to a state or county; or
(3) Two or three states, provinces, territories, or similar
political subdivisions of a country equivalent to a state.
Sec. 4.97 Eligibility for use of an appellation of origin for fruit
wine, agricultural wine, and rice wine.
(a) Appellations of origin for American wine. An American fruit,
agricultural, or rice wine is entitled to use the name of a single
county, State, or country (the United States or America[n]) as an
appellation of origin if:
(1) At least 75 percent of the volume of wine is derived from fruit
or agricultural products grown in the stated appellation of origin;
(2) The wine has been fully finished (as defined in Sec. 4.1):
(i) In the United States, if labeled ``[the] United States'' or
``America[n]'';
(ii) Within the labeled State or an adjacent State if labeled with
a State appellation; or
(iii) Within the State in which the labeled county is located, if
labeled with a county appellation; and
(3) The wine conforms to the laws and regulations of the named
appellation area that govern the composition, method of production, and
designation of wines made in such place.
(b) Appellations of origin for imported wine. An imported wine is
entitled to use the name of a single country or a single State,
province, territory, or similar political subdivision of a country
equivalent to a state or county as an appellation of origin if:
(1) At least 75 percent of the volume of the wine is derived from
fruit or other agricultural products grown in the area indicated by the
appellation of origin; and
(2) The wine conforms to the requirements of the foreign laws and
regulations that govern the composition, method of production, and
designation of wines available for consumption within the country of
origin.
Sec. 4.98 Multicounty and multistate appellations of origin for
fruit wine, agricultural wine, and rice wine.
(a) Multicounty appellations of origin. An appellation of origin
comprising the names of two or three counties in the same State may be
used if:
(1) At least 85 percent of the volume of the wine is derived from
fruit or other agricultural products grown in the counties included in
the appellation;
(2) The wine derived from fruit or other agricultural products
grown in each county included in the appellation is in greater
proportion than wine derived from fruit or other agricultural products
grown in any county that is not listed; and
(3) The counties are listed in descending order of predominance,
based on the percentage of wine derived from fruit or other
agricultural products grown or harvested in each county.
(b) Multistate appellations for American wine. An appellation of
origin comprising the names of two or three States may be used, if:
(1) At least 85 percent of the volume of the wine is derived from
fruit or other agricultural products grown in the States indicated;
(2) The wine derived from fruit or other agricultural products
grown or harvested in each State listed on the label is in greater
proportion than wine
[[Page 60631]]
derived from fruit or other agricultural products grown in any State
that is not listed;
(3) The States must be listed in a descending order of
predominance, based on the percentage of wine derived from fruit or
other agricultural products grown or harvested in each State;
(4) The wine has been fully finished (as defined in Sec. 4.1) in
one of the labeled States; and
(5) The wine conforms to the laws and regulations that govern the
composition, method of manufacture, and designation of wines in all of
the States listed in the appellation.
(c) Multistate appellations of origin for imported wine. An
appellation of origin comprising the names of two or three states,
provinces, territories, or similar political subdivisions of a country
equivalent to a state, all of which are in the same country, may be
used if:
(1) At least 85 percent of the volume of the wine is derived from
fruit or other agricultural products grown or harvested in the states,
provinces, territories, or similar political subdivisions of a country
equivalent to a state that are included in the appellation;
(2) The wine derived from fruit or agricultural products grown or
harvested in each named state, province, territory, or similar
political subdivisions must be listed in a descending order of
predominance, based on the percentage of wine derived from fruit or
other agricultural products grown or harvested in each;
(3) The wine derived from fruit or other agricultural products
grown or harvested in each state, province, territory, or similar
political subdivision must be in greater proportion than wine derived
from fruit or other agricultural products grown or harvested in any
such area not listed on the label; and
(4) The wine conforms to the requirements of the foreign laws and
regulations that govern the composition, method of production, and
designation of wines available for consumption within the country of
origin.
Subpart G--Prohibited Labeling Practices
Sec. 4.101 General.
(a) Application. The prohibitions set forth in this subpart apply
to any wine label, container, or packaging. For purposes of this
subpart:
(1) The term ``label'' includes all labels on wine containers on
which mandatory information may appear, as set forth in Sec. 4.61(a),
as well as any other label on the container;
(2) The term ``container'' includes all parts of the wine
container, including any part of a wine container on which mandatory
information may appear, as well as those parts of the container on
which information does not satisfy mandatory labeling requirements, as
set forth in Sec. 4.61(b); and
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering or other packaging of such containers used for sale
at retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of the prohibited
practices in this subpart, the term ``statement or representation''
includes any statement, design, device, or representation, and includes
pictorial or graphic designs or representations as well as written
ones. The term ``statement or representation'' includes explicit and
implicit statements and representations.
Sec. 4.102 False or untrue statements.
Wine labels, containers, or packaging may not contain any statement
or representation that is false or untrue in any particular.
Sec. 4.103 Obscene or indecent depictions.
Wine labels, containers, or packaging may not contain any statement
or representation that is obscene or indecent.
Subpart H--Labeling Practices That Are Prohibited If They Are
Misleading
Sec. 4.121 General.
(a) Application. The labeling practices that are prohibited if
misleading set forth in this subpart apply to any wine label,
container, or packaging. For purposes of this subpart:
(1) The term ``label'' includes all labels on wine containers on
which mandatory information may appear, as set forth in Sec. 4.61(a),
as well as any other label on the container;
(2) The term ``container'' includes all parts of the wine
container, including any part of a wine container on which mandatory
information may appear, as well as those parts of the container on
which information does not satisfy mandatory labeling requirements, as
set forth in Sec. 4.61(b); and
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering or other packaging of such containers used for sale
at retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of this subpart, the
term ``statement or representation'' includes any statement, design,
device, or representation, and includes pictorial or graphic designs or
representations as well as written ones. The term ``statement or
representation'' includes explicit and implicit statements and
representations.
Sec. 4.122 Misleading statements or representations.
(a) General prohibition. Wine labels, containers, or packaging may
not contain any statement or representation, irrespective of falsity,
that is misleading to consumers as to the age, origin, identity, or
other characteristics of the wine, or with regard to any other material
factor.
(b) Ways in which statements or representations may be misleading.
(1) A statement or representation is prohibited, irrespective of
falsity, if it directly creates a misleading impression, or if it does
so indirectly through ambiguity, omission, inference, or by the
addition of irrelevant, scientific, or technical matter. For example,
an otherwise truthful statement may be misleading because of the
omission of material information, the disclosure of which is necessary
to prevent the statement from being misleading.
(2) As set forth in Sec. 4.212(b), all claims, whether implicit or
explicit, must have a reasonable basis in fact. Any claim on wine
labels, containers, or packaging that does not have a reasonable basis
in fact, or cannot be adequately substantiated upon the request of the
appropriate TTB officer, is considered misleading.
Sec. 4.123 Guarantees.
Wine labels, containers, or packaging may not contain any statement
relating to guarantees if the appropriate TTB officer finds it is
likely to mislead the consumer. However, money-back guarantees are not
prohibited.
Sec. 4.124 Disparaging statements.
(a) General. Wine labels, containers, or packaging may not contain
any false or misleading statement that explicitly or implicitly
disparages a competitor's product.
(b) Examples. (1) An example of an explicit statement that falsely
disparages a competitor's product is, ``Brand X is not aged in oak
barrels,'' when such statement is not true.
(2) An example of an implicit statement that disparages
competitors' products in a misleading fashion is, ``We do not add
arsenic to our wine,''
[[Page 60632]]
where such a claim is true but it may lead consumers to falsely believe
that other winemakers do add arsenic to their wine.
(c) Truthful and accurate comparisons. This section does not
prevent truthful and accurate comparisons between products (such as,
``Our wine contains more grapes than Brand X'') or statements of
opinion (such as, ``We think our wine tastes better than any other wine
on the market'').
Sec. 4.125 Tests or analyses.
Wine labels, containers, or packaging may not contain any statement
or representation of or relating to analyses, standards, or tests,
whether or not it is true, that is likely to mislead the consumer. An
example of such a misleading statement is ``tested and approved by our
research laboratories'' if the testing and approval does not in fact
have any significance.
Sec. 4.126 Depictions of government symbols.
(a) Representations of the armed forces and flags. Wine labels,
containers, or packaging may not show an image of any government's flag
or any representation related to the armed forces of the United States
if the representation, standing alone or considered together with any
additional language or symbols on the label, creates a false or
misleading impression that the product was endorsed by, made by, used
by, or made under the supervision of, the government represented by
that flag or the armed forces of the United States. This section does
not prohibit the use of a flag as part of a claim of American origin or
another country of origin.
(b) Government seals. Wine labels, containers, or packaging may not
contain any government seal or other insignia that is likely create a
false or misleading impression that the product has been endorsed by,
made by, used by, or produced for, or under the supervision of, or in
accordance with the specification of, that government. Seals required
or specifically authorized by applicable law or regulations and used in
accordance with such law or regulations are not prohibited.
Sec. 4.127 Depictions simulating government stamps or relating to
supervision.
(a) Wine labels, containers, or packaging may not contain any
statements or representations that mislead consumers to believe that
the wine is manufactured or processed under government authority. Wine
labels, containers, or packaging may not contain images or designs
resembling a stamp of the U.S. Government or any State or foreign
government, and may not contain statements or indications that the wine
is produced, blended, bottled, packed or sold under, or in accordance
with, any municipal, State, Federal, or foreign authorization, law, or
regulations, unless such statement is required or specifically
authorized by applicable law or regulations. If a municipal, State, or
Federal Government permit number is stated on a label, containers, or
packaging, it may not be accompanied by any additional statement
relating to that permit number with the exception of the name and
address of the person associated with that permit number.
(b) If imported wines are covered by a certificate of origin and/or
a certificate of vintage date issued by an official duly authorized by
the appropriate foreign government, the container, except where
prohibited by the foreign government, may refer to that certificate or
to the fact of that certification, but the container must not contain
any additional statements relating to the certificate or certification.
Any reference to such a certificate or certification must be in
substantially the following form:
This product was accompanied at the time of the importation by a
certificate issued by the
-----------------------------------------------------------------------
(Name of government)
government indicating that the product is
-----------------------------------------------------------------------
(Class and type as stated on the container)
and (if container bears a statement of vintage date) that the wine is
of the vintage of
-----------------------------------------------------------------------
(Year of vintage stated on the container).
Sec. 4.128 Claims related to distilled spirits or malt beverages.
(a) General. Except as provided in paragraph (b) of this section,
no label, carton, case, or any other packaging material may contain a
statement, design, or representation that tends to create a false or
misleading impression that the wine is a distilled spirits or malt
beverage product, or that it contains distilled spirits or malt
beverages. For example, the use of the name of a class or type
designation of a distilled spirits or malt beverage product, as set
forth in part 5 or 7 of this chapter, is prohibited, if the use of that
name creates a misleading impression as to the identity of the product.
Homophones or coined words that simulate or imitate a class or type
designation are also prohibited.
(b) Exceptions. This section does not prohibit:
(1) A truthful and accurate statement of alcohol content;
(2) The use of a brand name of a distilled spirits or malt beverage
product as a wine brand name, provided that the overall label does not
create a misleading impression as to the identity of the product;
(3) The use of a distilled spirits or malt beverage cocktail name
as a brand name or a distinctive or fanciful name of a wine product,
provided that a statement of composition, in accordance with Sec.
4.151, appears in the same field of vision as the brand name or a
distinctive or fanciful name and the overall label does not create a
misleading impression about the identity of the product;
(4) The use of a statement of composition that includes a reference
to the type of distilled spirits contained therein;
(5) The use of truthful and accurate statements about the
production of the wine, as part of a statement of composition or
otherwise, such as ``aged in whisky barrels,'' so long as such
statements do not create a misleading impression as to the identity of
the product; or
(6) The use of terms that simply compare wine to distilled spirits
or malt beverage products without creating a misleading impression as
to the identity of the product.
Sec. 4.129 Health-related statements.
(a) Definitions. When used in this section, the following terms
have the meaning indicated:
(1) Health-related statement means any statement related to health
(other than the warning statement required under part 16 of this
chapter) and includes statements of a curative or therapeutic nature
that, expressly or by implication, suggest a relationship between the
consumption of alcohol, wine, or any substance found within the wine,
and health benefits or effects on health. The term includes both
specific health claims and general references to alleged health
benefits or effects on health associated with the consumption of
alcohol, wine, or any substance found within the wine, as well as
health-related directional statements. The term also includes
statements and claims that imply that a physical or psychological
sensation results from consuming the wine, as well as statements and
claims of nutritional value (for example, statements of vitamin
content). Numerical statements of the calorie,
[[Page 60633]]
carbohydrate, protein, and fat content of the product do not constitute
claims of nutritional value.
(2) Specific health claim means a type of health-related statement
that, expressly or by implication, characterizes the relationship of
alcohol, wine, or any substance found within the wine, to a disease or
health-related condition. Implied specific health claims include
statements, symbols, vignettes, or other forms of communication that
suggest, within the context in which they are presented, that a
relationship exists between wine, alcohol, or any substance found
within the wine, and a disease or health-related condition.
(3) Health-related directional statement means a type of health-
related statement that directs or refers consumers to a third party or
other source for information regarding the effects on health of wine or
alcohol consumption.
(b) Rules for labeling--(1) Health-related statements. In general,
labels may not contain any health-related statement that is untrue in
any particular or tends to create a misleading impression as to the
effects on health of alcohol consumption. TTB will evaluate such
statements on a case-by-case basis and may require as part of the
health-related statement a disclaimer or some other qualifying
statement to dispel any misleading impression conveyed by the health-
related statement.
(2) Specific health claims. (i) TTB will consult with the Food and
Drug Administration (FDA), as needed, on the use of a specific health
claim on the wine. If FDA determines that the use of such a labeling
claim is a drug claim that is not in compliance with the requirements
of the Federal Food, Drug, and Cosmetic Act, TTB will not approve the
use of that specific health claim on the wine.
(ii) TTB will approve the use of a specific health claim on a wine
label only if the claim: Is truthful and adequately substantiated by
scientific or medical evidence; is sufficiently detailed and qualified
with respect to the categories of individuals to whom the claim
applies; adequately discloses the health risks associated with both
moderate and heavier levels of alcohol consumption; and outlines the
categories of individuals for whom any levels of alcohol consumption
may cause health risks. This information must appear as part of the
specific health claim.
(3) Health-related directional statements. A health-related
directional statement is presumed misleading unless it:
(i) Directs consumers in a neutral or other non-misleading manner
to a third party or other source for balanced information regarding the
effects on health of alcohol or alcohol beverage product consumption;
and
(ii)(A) Includes as part of the health-related directional
statement the following disclaimer: ``This statement should not
encourage you to drink or to increase your alcohol consumption for
health reasons''; or
(B) Includes as part of the health-related directional statement
some other qualifying statement that the appropriate TTB officer finds
is sufficient to dispel any misleading impression conveyed by the
health-related directional statement.
Sec. 4.130 Appearance of endorsement.
(a) General. Wine labels, containers, or packaging may not include
the name, or the simulation or abbreviation of the name, of any living
individual of public prominence, or an existing private or public
organization, or any graphic, pictorial, or emblematic representation
of the individual or organization, if its use is likely to lead a
consumer to falsely believe that the product has been endorsed, made,
or used by, or produced for, or under the supervision of, or in
accordance with the specifications of, such individual or organization.
This section does not prohibit the use of such names where the
individual or organization has provided authorization for their use.
(b) Documentation. The appropriate TTB officer may request
documentation from the bottler or importer to establish that the person
or organization has provided authorization to use the name of that
person or organization.
(c) Disclaimers. Statements or other representations do not violate
this section if, taken as a whole, they create no misleading impression
as to an implied endorsement either because of the context in which
they are presented or because of the use of an adequate disclaimer.
Sec. 4.131 Use of the word ``importer'' or similar words.
(a) Except as provided in paragraph (b) of this section, labels,
containers, or packaging for wine that is not required to bear an
``imported by'' statement under Sec. 4.67 or Sec. 4.68 may not
include the word ``importer'' or any other word that creates the
misleading impression that the product was imported.
(b) If the word ``importer'' or a similar word is part of the bona
fide name of a permittee by or for whom the wine was bottled, or a
retailer for whom the wine was bottled or distributed, it may appear as
part of the name and address statement, as long as the words ``Product
of the United States'' or similar dispelling language appears
immediately adjacent to the name and address statement, in the same
size and type of the name and address statement.
Sec. 4.132 [Reserved]
Sec. 4.133 Claims regarding terms defined or authorized by this
part.
(a) Wine labels, containers, or packaging may not include any use
of a term defined in this part in a manner that is not consistent with
the definitions set forth in this part.
(b) Wine labels, containers, or packaging materials may not contain
any coined word or name that simulates, imitates, or which tends to
create the impression that the wine so labeled is entitled to bear, any
class, type, or authorized designation recognized by the regulations in
this part or in part 5 or part 7 of this chapter unless the wine
conforms to the requirements prescribed with respect to such
designation and is in fact so designated on its labels.
(c) Except as provided by Sec. 4.136, statements or
representations on wine labels, containers, or packaging may not make
claims about the grape varieties used in production of a wine that does
not bear a varietal designation under Sec. 4.156 or Sec. 4.157.
(d) Except as provided by Sec. 4.134, statements or
representations on wine labels, containers, or packaging may not make
claims about the year that grapes were grown or harvested unless the
wine label bears a vintage date in accordance with Sec. 4.95, and the
claims are consistent with that date.
Sec. 4.134 Statements related to dates or ages.
(a) Statement of age. Except as provided in paragraphs (b) and (c)
of this section, a wine label, container, or packaging may not bear any
statement or other representation of age, including representations in
the brand name, except for:
(1) Vintage wine, in accordance with Sec. 4.95;
(2) References relating to methods of wine production involving
storage or aging, in accordance with Sec. 4.56. Any such age statement
must indicate how long the wine has been aged and the type of aging
that occurred, for example, ``Barrel aged for __ months;'' or
(3) Use of the word ``old'' as part of the brand name; or
(4) Additional truthful, accurate, and specific information about
the year of
[[Page 60634]]
harvest of the grapes or fruit used to make still, sparkling, or
carbonated grape wine, or still, sparkling, or carbonated fruit wine,
respectively. The information must indicate the percentage of wine
derived from grapes or fruit, respectively, grown in each of the
labeled harvest years, such as ``60% of the grapes used to make this
wine were harvested in 2014; the remaining 40% were harvested in
2013,'' or ``this wine is a blend of 50% wine made from apples
harvested in 2012 and 50% wine made from apples harvested in 2011.''
When applicable, the years of harvest must be presented in descending
order based on the percentage of wine derived from grapes or fruit
grown in each year.
(b) Statement of bottling date. For purposes of paragraph (a) of
this section, a statement of the bottling date of a wine will not be
deemed to be a representation relative to age, provided that the
statement appears in the following form: ``Bottled in __'' (inserting
the year in which the wine was bottled).
(c) Miscellaneous date statements. Except in the case of vintage
dates and bottling, storage, or aging dates as provided in paragraphs
(a) and (b) of this section, a wine label must not bear any date
unless, in addition to the date and immediately adjacent to the date
and in the same size and kind of printing, a statement of the
significance or relevance of the date is provided, such as
``established'' or ``founded in''. If the date refers to the date of
establishment of any business or brand name, the date and its
accompanying statement must appear immediately adjacent to the name of
the person, company, or brand name to which it relates if the
appropriate TTB officer finds that this is necessary in order to
prevent confusion as to the person, company, or brand name to which the
establishment date applies. This paragraph does not authorize the use
of dates referring to the date of growth or harvest of the grapes on
wines that are not labeled with vintage dates in accordance with Sec.
4.95.
Sec. 4.135 Indications of origin.
(a) General rule. Except as otherwise provided in Sec. Sec. 4.64
and 4.174, which address brand names of geographic significance and
semi-generic designations, respectively, any statement, design, device
or representation on a wine label, container, or packaging that
indicates or implies an origin other than the true place of origin of
the wine is prohibited. This section does not prohibit name and address
statements in accordance with this part.
(b) Wine that is labeled with an appellation of origin. Except as
otherwise provided in Sec. Sec. 4.64 and 4.174, which address brand
names of geographic significance and semi-generic designations,
respectively, any statement or representation regarding the origin of
the grapes, fruit, or agricultural materials used to make wine that is
labeled with an appellation of origin must be consistent with the
appellation of origin that appears on the label.
(c) Wine that is not labeled with an appellation of origin. Wine
that is not labeled with an appellation of origin may be labeled with
additional information that provides truthful information about the
origin of the grapes, fruit, or other agricultural materials that were
used to produce the wine provided that:
(1) The name of the place of origin of the grapes, fruit, or other
agricultural products does not appear on the label in a way that
creates the misleading impression that the wine is entitled to an
appellation of origin under Sec. Sec. 4.88-4.90 or Sec. Sec. 4.96-
4.97; and
(2) Any additional information about the origin of the grapes,
fruit, or other agricultural products of the wine sets forth the origin
of 100 percent of the grapes, fruit, or other agricultural products
used to make the wine, in descending order of predominance, together
with the place where the wine was produced.
(d) Examples of permissible statements of origin as additional
information. A wine that is produced in New York and designated as
``red wine,'' may be labeled with a statement that indicates the origin
and percentage of the gapes that were used to produce the wine. If 50
percent of the grapes used to make the wine were grown in New York, and
50 percent of the grapes used to make the wine were grown in Virginia,
the wine may bear a statement on the label to the effect of ``this wine
was produced and bottled in New York from 50 percent New York grapes
and 50 percent Virginia grapes.''
Sec. 4.136 Use of a varietal name, type designation of varietal
significance, semi-generic name, or geographic distinctive designation.
(a) The use of a varietal name, type designation of varietal
significance, semi-generic name, or geographic distinctive designation
is presumed to be misleading and is thus prohibited on the label,
container, or packaging of any wine that is not made in accordance with
the standards prescribed for still grape wine, sparkling grape wine, or
carbonated grape wine of Sec. Sec. 4.142, 4.143, and 4.144.
(b) The use of such a term on the label of a wine, container, or
packaging of any wine that is made in accordance with the standards
prescribed for still grape wine, sparkling grape wine, or carbonated
grape wine but does not meet the requirements for use of the
designation named, including its use in a brand name, product name, or
a distinctive or fanciful name, is prohibited where the use of such
name may tend to create a false or misleading impression as to the
designation, origin, or identity of the wine.
(c) This paragraph does not prohibit the use of truthful, accurate,
and specific additional information on the label about the grape
varieties used to make a still grape wine, sparkling grape wine, or
carbonated grape wine, provided that the information includes every
grape variety used to make the wine, listed in descending order of
predominance. The percentage of each grape variety may be, but is not
required to be, shown on the label, along with a tolerance of two
percentage points. When shown, percentages must be shown for all grape
varieties listed, and the total must equal 100 percent.
Sec. 4.137 Terms relating to intoxicating qualities.
Wine labels, containers, or packaging may not contain any statement
or representation that tends to create the impression that the wine
should be purchased or consumed based on intoxicating qualities.
Subpart I--The Standards of Identity for Wine
Sec. 4.141 The standards of identity in general.
(a) Standards of identity (class and type designations) and other
designations (statements of composition). Sections 4.142 through 4.150
provide for the standards of identity for wine. These standards are
broken into nine classes and several types within each class. In
general, the class and/or type designation is used to meet the
mandatory requirement found in Sec. 4.63(a)(2). In certain
circumstances, a statement of composition as prescribed in Sec. 4.151
may be required. In those circumstances, the statement of composition
meets the mandatory label information requirement in Sec. 4.63(a)(2).
All parts of the designation of wine, whether mandatory or optional,
must appear together and in lettering substantially of the same size
and kind. Whenever any term for which a standard of identity has been
[[Page 60635]]
established in this subpart is used in this part, the term has the
meaning assigned to it by that standard of identity.
(b) Cellar treatment of wine. See Sec. 4.154 for cellar treatments
that change the class and type designation of wine and for those cellar
treatments that are authorized for use without changing the class and
type of wine.
Sec. 4.142 Still grape wine--class and type designation.
(a) Still grape wine. (1) Still grape wine is wine produced by the
normal alcoholic fermentation of the juice of sound, ripe grapes
(including restored or unrestored pure condensed grape must), with or
without the addition, after fermentation, of pure condensed grape must
and with or without added spirits of the type authorized for natural
wine under 26 U.S.C. 5382, but without other addition or abstraction
except as may occur in cellar treatment of the type authorized for
natural wine under 26 U.S.C. 5382.
(2) Still grape wine may be ameliorated, or sweetened, before,
during, or after fermentation, in a way that is consistent with the
limits set forth in 26 U.S.C. 5383 for natural grape wine, provided
that grape wine designated as ``specially sweetened grape wine'' under
paragraph (c)(11) of this section may be sweetened in accordance with
the standards set forth in 26 U.S.C. 5385.
(3) Still grape wine must contain less than 0.392 grams of carbon
dioxide per 100 milliliters. The maximum volatile acidity, calculated
as acetic acid and exclusive of sulfur dioxide is 0.14 gram per 100 mL
(20 degrees Celsius) for red wine and 0.12 gram per 100 mL (20 degrees
Celsius) for other grape wine, provided that the maximum volatile
acidity for wine produced from unameliorated juice of 28 or more
degrees Brix is 0.17 gram per 100 mL for red wine and 0.15 gram per 100
mL for white wine.
(b) Class designation of grape wine. Still grape wine must be
designated as ``still grape wine'' or ``grape wine'' unless paragraph
(c) of this section applies. Still grape wine that is designated with
an authorized type designation may use the class designation ``grape
wine'' in addition to the type designation.
(c) Type designation of still grape wine. Still grape wine may be
designated with one or more of the following type designation(s) that
apply in place of or in addition to the class designation.
(1) Red, white, blush, pink, ros[eacute], and amber wine. Still
grape wine that derives its characteristic color from the presence or
absence of the red coloring matter of the skins, juice, or pulp of
grapes may be designated as ``red wine,'' ``white wine,'' ``blush
wine,'' ``pink wine,'' ``ros[eacute] wine,'' or ``amber wine,'' as the
case may be.
(2) Grape variety. The names of one or more grape varieties (for
example, ``chardonnay'' or ``cabernet franc and merlot'') may be used
as the type designation in accordance with Sec. 4.156.
(3) Grape type designation of varietal significance. A grape type
designation of varietal significance (for example, ``moscato'' or
``scuppernong'') may be used as the type designation in accordance with
Sec. 4.157.
(4) Semi generic designation of geographic significance. A semi-
generic designation of geographic significance (for example,
``Angelica'') may be used as the type designation in accordance with
Sec. 4.174.
(5) Non-generic designation that is a distinctive designations of
specific grape wines. A non-generic designation that is a distinctive
designation of specific grape wine (for example, ``Bordeaux Blanc'')
may be used as the type designation in accordance with Sec. 4.175.
(6) Table wine and light wine. Still grape wine having an alcoholic
content greater than 7 percent by volume and not in excess of 14
percent by volume may be designated as ``table wine'' or ``light
wine.''
(7) Dessert wine. Still grape wine having an alcoholic content
greater than 14 percent by volume and not in excess of 24 percent by
volume may be designated as ``dessert wine.''
(8) Angelica. Angelica is grape wine having the taste, aroma, and
characteristics generally attributed to angelica. Angelica has an
alcohol content in excess of 14 percent but not in excess of 24 percent
by volume. The alcohol content is derived in part from added grape
brandy or alcohol. Angelica has been recognized as a semi-generic
designation of geographic significance and is subject to the
requirements of Sec. 4.174.
(9) Madeira, port, and sherry. Madeira, port, and sherry are grape
wines having the taste, aroma, and characteristics generally attributed
to such wines. Madeira, port, and sherry have an alcohol content in
excess of 14 percent but not in excess of 24 percent by volume. The
alcohol content is derived in part from added grape brandy or alcohol.
These grape wine types have been recognized as semi-generic designation
of geographic significance and are subject to the requirements of Sec.
4.174.
(10) Muscatel. Muscatel is grape wine having the taste, aroma, and
characteristics generally attributed to Muscatel. Muscatel has an
alcohol content in excess of 14 percent but not in excess of 24 percent
by volume. The alcohol content is derived in part from added grape
brandy or alcohol. Muscatel is a grape type designation.
(11) ``Specially sweetened grape wine.'' Grape wine sweetened in
accordance with the standards set forth in 26 U.S.C. 5385 must include
the words ``extra sweet,'' ``specially sweetened,'' ``specially
sweet,'' or ``sweetened with excess sugar'' as part of the class and
type designation.
Sec. 4.143 Sparkling grape wine--class and type designation.
(a) Sparkling grape wine. Sparkling grape wine is still grape wine
made effervescent with carbon dioxide resulting solely from the
secondary fermentation of the wine within a closed container, tank or
bottle. Sparkling grape wine must contain at least 0.392 grams of
carbon dioxide per 100 milliliters of wine.
(b) Class designation of sparkling wine. Sparkling grape wine must
be designated as ``sparkling wine'' or ``sparkling grape wine.''
(c) Type designations of sparkling wine. In addition to the class
designation, sparkling grape wine may be designated with one or more of
the following type designation(s) that apply.
(1) Red, white, amber, pink, ros[eacute], and blush. Sparkling wine
that derives its characteristic color from the presence or absence of
the red coloring matter of the skins, juice, or pulp of grapes may be
designated as ``sparkling red (or white, blush, pink, ros[eacute], or
amber, as the case may be) wine.''
(2) Grape variety. The names of one or more grape varieties
following the word ``sparkling'' (for example, ``sparkling chardonnay''
or ``sparkling cabernet franc and merlot'') may be used as a type
designation for sparkling grape wine in accordance with Sec. 4.156.
(3) Grape type designation of varietal significance. A grape type
designation (for example, ``sparkling moscato'' or ``sparkling
scuppernong'') may be used as a type designation for sparkling wine in
accordance with Sec. 4.157.
(4) Semi-generic designation of geographic significance. A semi-
generic designation of geographic significance (for example,
``champagne'') may be used as the type designation for sparkling grape
wine in accordance with Sec. 4.174.
(5) Nongeneric designation that is a distinctive designation. A
nongeneric designation that is a distinctive
[[Page 60636]]
designation of a specific grape wine (for example, ``sparkling asti
spumante'') may be used as the type designation in accordance with
Sec. 4.176.
(6) Champagne. Champagne is a type of sparkling grape wine with an
alcohol content of less than 14 percent alcohol by volume. Champagne
derives its effervescence solely from the secondary fermentation of the
wine within glass containers of not greater than one gallon capacity,
and possesses the taste, aroma, and other characteristics attributed to
champagne as made in the Champagne district of France. Champagne has
been recognized as a semi-generic designation of geographic
significance and must be labeled in accordance with Sec. 4.174.
(7) Champagne style and champagne type. A sparkling wine having
less than 14 percent alcohol by volume, and having the taste, aroma,
and characteristics generally attributed to champagne but not otherwise
conforming to the standard for ``champagne'' as prescribed by paragraph
(c)(6) of this section may, in addition to but not in lieu of the class
designation ``sparkling wine,'' be further designated as ``champagne
style'' or ``champagne type,'' along with one of the required terms
denoting use of bulk process set forth in paragraph (d) of this
section. The designation ``champagne'' has been recognized as a semi-
generic designation of geographic significance and thus wines labeled
with a designation of ``champagne style'' or ``champagne type'' must be
labeled in accordance with Sec. 4.174.
(8) Crackling wine, petillant wine, frizzante wine, cremant,
perlant, reciotto, and other similar wine. Crackling, petillant,
frizzante, cremant, perlant, and reciotto wines are types of sparkling
grape wines that are normally less effervescent than champagne or other
similar sparkling wine, but containing sufficient carbon dioxide in
solution to produce, upon pouring under normal conditions, after the
disappearance of air bubbles, a slow and steady effervescence evidenced
by the formation of gas bubbles flowing through the wine. Such wines
may be designated as: ``crackling,'' ``petillant,'' ``frizzante,''
``cremant,'' ``perlant,'' and ``reciotto'' wines.
(d) Bulk process. In addition to the product designation, any
sparkling grape wine that derives its effervescence from secondary
fermentation in containers greater than 1-gallon capacity must be
labeled with one or more of the following statements: ``Bulk process,''
``fermented outside the bottle,'' ``secondary fermentation outside the
bottle,'' ``secondary fermentation before bottling,'' ``not fermented
in the bottle,'' or ``not bottle fermented.'' The statement ``charmat
method'' or ``charmat process'' may be used as additional information
in addition to but not in lieu of one of the required statements. This
information must be stated on the same label as the product designation
and must appear in at least half the type size as the product
designation.
Sec. 4.144 Carbonated grape wine--class and type designation.
(a) Carbonated grape wine. Carbonated grape wine is still grape
wine made effervescent by the injection of carbon dioxide. Carbonated
grape wine must contain at least 0.392 grams of carbon dioxide per 100
milliliters of wine.
(b) Class designation of carbonated wine. Carbonated grape wine
must be designated as ``carbonated wine'' or ``carbonated grape wine.''
(c) Type designation. In addition to the class designation,
carbonated grape wine may be designated with one or more of the
following type designation(s) that apply.
(1) Red, white, amber, pink, ros[eacute], and blush. Carbonated
wine that derives its characteristic color from the presence or absence
of the red coloring matter of the skins, juice, or pulp of grapes may
be designated as ``carbonated red (or white, blush, pink, ros[eacute],
or amber, as the case may be) wine.''
(2) Grape variety. The names of one or more grape varieties may be
used as a type designation for carbonated grape wine (for example,
``carbonated chardonnay'' or ``carbonated merlot and cabernet franc'')
in accordance with Sec. 4.156.
(3) Grape type designation of varietal significance. A grape type
designation may be used as a type designation for carbonated grape wine
(for example, ``carbonated moscato'' or ``carbonated scuppernong'') in
accordance with Sec. 4.157.
(4) Semi-generic designation of geographic significance. A semi-
generic designation of geographic significance may be used as a type
designation of carbonated grape wine (for example, ``carbonated
Burgundy'') in accordance with Sec. 4.174.
Sec. 4.145 Fruit wine--class and type designation.
(a) Fruit wine. (1) Fruit wine is wine produced by the normal
alcoholic fermentation of the juice of sound, ripe fruit (including
restored or unrestored pure condensed fruit must) other than grapes,
with or without the addition, after fermentation, of pure condensed
fruit must and, with or without added spirits of the type authorized
for natural wine under 26 U.S.C. 5382, but without other addition or
abstraction except as may occur in cellar treatment of the type
authorized for natural wine under 26 U.S.C. 5382.
(2) Fruit wine may be ameliorated, or sweetened, before, during, or
after fermentation, in a way that is consistent with the limits set
forth in 26 U.S.C. 5384 for natural fruit wine, provided that fruit
wine designated as ``specially sweetened fruit wine'' (or with a
similar term) under paragraph (c)(8) of this section may be sweetened
in accordance with the standards set forth in 26 U.S.C. 5385.
(3) The maximum volatile acidity, calculated as acetic acid and
exclusive of sulfur dioxide, shall not be, for fruit wine that does not
contain brandy or wine spirits, more than 0.14 gram, and for other
fruit wine, more than 0.12 gram, per 100 milliliters (20 degrees
Celsius).
(b) Class designation for fruit wine--(1) Fruit wine derived wholly
from one kind of fruit. Fruit wine derived wholly from one kind of
fruit must be designated with the name of that fruit followed by the
word ``wine.'' For example, wine that is derived wholly from
strawberries, oranges, or peaches must be designated as ``strawberry
wine,'' ``orange wine,'' ``peach wine,'' respectively.
(2) Fruit wine derived from more than one kind of fruit. Fruit wine
derived from the fermentation of more than one kind of fruit must be
designated with the name of each fruit, followed by the word ``wine''
(for example, ``blueberry/banana wine,'' or ``orange-lime wine''). (For
the rules regarding statements of composition when two types of fruit
wine are blended together, see Sec. 4.151(c)).
(c) Type designation of fruit wine. Fruit wine may be designated
with one or more of the following applicable type designation(s) in
place of the class designation.
(1) Cider. Fruit wine that is derived wholly from apples may be
designated as ``cider.''
(2) Perry. Fruit wine that is derived wholly from pears may be
designated as ``perry.''
(3) Sparkling fruit wine. Fruit wine that is rendered effervescent
(at least 0.392 grams of carbon dioxide per 100 milliliters of wine) by
carbon dioxide resulting solely from the secondary fermentation of the
wine within a closed container, tank, or bottle may be designated as
such provided that the name of the fruit follows the word
``sparkling.'' For example, a fruit wine
[[Page 60637]]
that is derived wholly from peaches and rendered effervescent as
indicated in this paragraph, must be designated as ``sparkling peach
wine.'' If a fruit wine is authorized to carry the designation of
``sparkling'' and is derived from more than one type of fruit, it must
be designated as ``sparkling fruit wine'' and carry a statement that
indicates the types of fruit that the wine is made from, or as
``sparkling (name all fruits) wine.''
(4) Carbonated fruit wine. Fruit wine that is rendered effervescent
(at least 0.392 grams of carbon dioxide per 100 milliliters of wine) by
carbon dioxide may be designated as such provided that the name of the
fruit follows the word ``carbonated.'' For example, a fruit wine that
is wholly derived from peaches and rendered effervescent as indicated
in this paragraph must be designated as ``carbonated peach wine.'' If a
fruit wine is authorized to carry the designation of ``carbonated'' and
is derived from more than one type of fruit, it must be designated as
``carbonated fruit wine'' and carry a statement indicating the types of
fruit the wine is made from, or as ``carbonated (name all fruits)
wine.''
(5) Fruit table wine and fruit light wine. Fruit wine that has an
alcohol content greater than 7 percent by volume and not in excess of
14 percent by volume may be designated as ``(name of fruit(s)) table
wine'' or ``(name of fruit(s)) light wine.''
(6) Fruit dessert wine. Fruit wine that has an alcohol content
greater than 14 percent by volume and not in excess of 24 percent by
volume may be designated as ``(name of fruit(s)) dessert wine.''
(7) Specially sweetened fruit wine. Fruit wine sweetened in
accordance with the standards set forth in 26 U.S.C. 5385 must include
the words ``extra sweet,'' ``specially sweetened,'' ``specially
sweet,'' or ``sweetened with excess sugar'' as part of the class and
type designation.
Sec. 4.146 Agricultural wine--class and type designation.
(a) Agricultural wine. (1) Agricultural wine is made from suitable
agricultural products other than the juice of grapes, berries, or other
fruits and is produced by the normal alcoholic fermentation of sound
fermentable agricultural products, either fresh or dried, or of the
restored or unrestored pure condensed must thereof, and without added
distilled spirits.
(2) Agricultural wine may not be flavored or colored; however, hops
may be used in the production of honey wine in accordance with the
standards set forth in part 24 of this chapter.
(3) Agricultural wine may be ameliorated in accordance with the
standards set forth in part 24 of this chapter. The maximum volatile
acidity, calculated as acetic acid and exclusive of sulfur dioxide,
shall not be, for wine of this class, more than 0.14 grams per 100
milliliters (20 degrees Celsius).
(b) Class designation of agricultural wine--(1) Agricultural wine
derived wholly from one kind of agricultural product. Agricultural wine
derived wholly from one kind of agricultural product must be designated
by the word ``wine'' qualified by the name of the agricultural product.
For example, agricultural wine that is derived wholly from dandelions,
raisins, or agave must be designated as ``dandelion wine,'' ``raisin
wine,'' or ``agave wine,'' respectively. Agricultural wine derived
wholly from honey may be designated as either ``honey wine'' or
``mead.''
(2) Agricultural wine derived from more than one kind of
agricultural product. Agricultural wine derived from the fermentation
of more than one kind of agricultural product must be designated with
the name of each agricultural material, followed by the word ``wine''
(for example, ``dandelion honey wine). (For the rules regarding
statements of composition when two types of agricultural wine are
blended together, see Sec. 4.151(c)).
(c) Type designations. One or more of the following type
designations may be used in place of the class designation for
agricultural wine:
(1) Sparkling agricultural wine. Agricultural wine that is rendered
effervescent (at least 0.392 grams of carbon dioxide per 100
milliliters of wine) by carbon dioxide resulting solely from the
secondary fermentation of the wine within a closed container, tank, or
bottle may be designated as ``sparkling (name of agricultural product)
wine.'' For example, agricultural wine that is derived wholly from
dandelions and rendered effervescent as stated in this paragraph must
be designated as ``sparkling dandelion wine.''
(2) Carbonated agricultural wine. Agricultural wine that is
rendered effervescent (at least 0.392 grams of carbon dioxide per 100
milliliters of wine) by carbon dioxide may be designated as
``carbonated (name of agricultural product) wine.'' For example,
agricultural wine that is derived wholly from dandelions and rendered
effervescent as stated in this paragraph must be designated as
``carbonated dandelion wine.''
(3) Agricultural table wine and light wine. Agricultural wine that
has an alcohol content greater than 7 percent by volume and not in
excess of 14 percent by volume may be designated as ``(name of
agricultural product(s)) table wine'' or ``(name of agricultural
product(s)) light wine.''
(4) Agricultural dessert wine. Agricultural wine having an
alcoholic content greater than 14 percent by volume and not in excess
of 24 percent by volume may be designated as ``(name of agricultural
product(s)) dessert wine.''
Sec. 4.147 Aperitif--class and type designation.
(a) Aperitif wine. Aperitif wine is compounded from grape wine
containing added brandy or alcohol may be flavored with herbs and other
natural aromatic flavoring materials, with or without the addition of
caramel for coloring purposes; and possess the taste, aroma, and
characteristics generally attributed to aperitif wine; and must have an
alcoholic content of not less than 15 percent by volume.
(b) Class designation of aperitif wine. Aperitif wine must be
designated as aperitif wine unless paragraph (c) of this section
applies.
(c) Type designation of aperitif wine. The following type
designation may be used for aperitif wine in place of the class
designation as applicable.
(1) Vermouth. Vermouth is a type of aperitif wine made from grape
wine, having the taste, aroma, and characteristics generally attributed
to vermouth. Vermouth has been recognized as a generic designation of
geographical significance and may be designated as ``vermouth.''
(2) [Reserved].
Sec. 4.148 Rice wine--class and type designation.
(a) Rice wine. Rice wine is produced from the alcoholic
fermentation of rice, with or without the addition of distilled
spirits.
(b) Class designation of rice wine. Wine of this class must be
designated as rice wine unless it meets one of the type designations in
paragraph (c) of this section.
(c) Type designation of rice wine. One or more of the following
type designations may be used for rice wine as applicable.
(1) Sak[eacute]. Sak[eacute] is produced from rice in accordance
with the commonly accepted method of manufacture of such product.
Sak[eacute] has been designated as a generic designation of geographic
significance under Sec. 4.183.
(2) Gyeongju Beopju. Gyeongju Beopju is a rice wine produced in the
Republic of Korea in accordance with the laws and regulations of the
Republic of Korea governing the manufacture of such product.
[[Page 60638]]
(3) Rice table wine and light wine. Rice wine that has an alcohol
content greater than 7 percent by volume and not in excess of 14
percent by volume may be designated as ``rice table wine'' or ``rice
light wine.''
(4) Rice dessert wine. Rice wine having an alcoholic content
greater than 14 percent by volume and not in excess of 24 percent by
volume may be designated as ``rice dessert wine.''
Sec. 4.149 Retsina wine--designation.
``Retsina wine'' is still grape table wine fermented or flavored
with resin. Retsina has been recognized as a semi-generic designation
of geographic significance and is subject to the rules found in Sec.
4.174 with regard to semi-generic designations.
Sec. 4.150 Imitation and substandard or other than standard wine--
designation.
(a) ``Imitation wine'' shall bear as a part of its designation the
word ``imitation,'' and shall include:
(1) Any wine containing synthetic materials.
(2) Any wine made from a mixture of water with residue remaining
after thorough pressing of grapes, fruit, or other agricultural
products.
(3) Any class or type of wine the taste, aroma, color, or other
characteristics of which have been acquired, in whole or in part, by
treatment with methods or materials of any kind (except as permitted in
Sec. 4.154(c)(5)), if the taste, aroma, color, or other
characteristics of normal wines of such class or type are acquired
without such treatment.
(4) Any wine made from must concentrated at any time to more than
80[deg] brix.
(b) ``Substandard wine'' or ``other than standard wine'' shall bear
as a part of its designation the words ``substandard'' or ``other than
standard,'' and shall include:
(1) Any wine having a volatile acidity in excess of the maximum
prescribed therefor in subpart I of this part.
(2) Any wine for which no maximum volatile acidity is prescribed in
subpart I of this part, inclusive, having a volatile acidity,
calculated as acetic acid and exclusive of sulfur dioxide, in excess of
0.14 gram per 100 milliliters (20 degrees Celsius).
(3) Any wine for which a standard of identity is prescribed in this
subpart I of this part, inclusive, which, through disease,
decomposition, or otherwise, fails to have the composition, color, and
clean vinous taste and aroma of normal wines conforming to such
standard.
(4) Any ``grape wine,'' ``fruit wine,'' or ``wine from other
agricultural products'' to which sugar, water, or a sugar-water
solution has been added in excess of the production standards for such
wine as prescribed in part 24 of this chapter and in an amount which is
in excess of the limitations prescribed in the standards of identity
for these products, unless, in the case of ``fruit wine'' and ``wine
from other agricultural products'' the normal acidity of the material
from which such wine is produced is 20 parts or more per thousand and
the volume of the resulting product has not been increased more than 60
percent by such addition.
Sec. 4.151 Statements of composition.
(a) General. If the class of the wine is not defined in one of the
standards of identity specified in subpart I of this part, or the wine
has been altered, treated, or blended beyond the standards permitted by
Sec. 4.154, a truthful and adequate statement of composition must
appear on the label as the class designation. A distinctive or fanciful
name, or a designation in accordance with trade understanding may
appear in addition to the statement of composition.
(b) The statement of composition may not include any reference to a
varietal (grape type) designation, type designation of varietal
significance, semi-generic geographic type designation, or geographic
distinctive designation.
(c) The appropriate TTB officer may require a statement of
composition to identify the base wine(s), including blends of wine or
fermentable materials, as well as other materials added to the wine
before, during, and after fermentation, as appropriate, in order to
ensure that the label provides adequate information about the identity
of the product. Where a product consists entirely of a blend of two
different types of fruit or agricultural wine, the statement of
composition must include of the names of the types of wine (such as,
``blueberry wine and apple wine'' or ``mead/rhubarb wine'').
Sec. Sec. 4.152-4.153 [Reserved]
Cellar Treatment and Alteration of Class and Type
Sec. 4.154 Cellar treatment and alteration of class or type.
(a) Statement of composition. If the class or type of any wine is
altered, and the product as altered does not fall within any other
class or type designations specified in Sec. Sec. 4.142 through 4.150,
then such wine must be labeled with a statement of composition in
accordance with Sec. 4.151.
(b) Alteration of class or type. Any of the following, occurring
before, during, or after fermentation, will result in an alteration of
class or type of wine:
(1) Treatment of any class or type of wine with a substance that is
not a natural component of the wine and that remains in the wine,
provided, that the presence in finished wine of not more than 350 parts
per million of total sulfur dioxide, or sulfites expressed as sulfur
dioxide, is not prohibited under this paragraph;
(2) Treatment of any class or type of wine with a substance that is
not foreign to the wine but that remains in the wine in larger
quantities than is naturally and normally present in other wines of the
same class or type that are not so treated;
(3) Treatment of any class or type of wine with a method or
material of any kind to such an extent or in such a manner as to affect
the basic composition of the wine by altering any of its characteristic
elements;
(4) Blending wine of one class with wine of another class or
blending of wines of different types within the same class; and
(5) Treatment of any class or type of wine for which a standard of
identity is prescribed in this part with sugar, water, or a sugar-water
solution in excess of the quantities specifically authorized in that
standard of identity, except that the class or type of such wine is not
deemed to be altered:
(i) If fruit wine, agricultural wine, aperitif wine, rice wine, and
imitation wine have a high normal acidity, if the total solids content
is not more than 22 grams per 100 cubic centimeters and the content of
natural acid is not less than 7.69 grams per liter; or
(ii) If grape wine, fruit wine, agricultural wine, aperitif wine,
rice wine, retsina, and imitation wine have the normal acidity of 20
grams per liter, the volume of the resulting product has been increased
not more than 60 percent by the addition of sugar, water, or a sugar-
water solution for the sole purpose of correcting natural deficiencies
due to such acidity, and (except in the case of such wine when produced
from fruit or berries other than grapes) the phrase ``Made with over 35
percent sugar-water solution'' is included as part of the class and
type statement.
(c) Authorized cellar treatments: The following treatments are
authorized for use provided that they do not result in the alteration
of the class or type of the wine under the provisions of paragraph (b)
of this section:
(1) Treatment with filtering equipment, or with fining or
sterilizing agents;
[[Page 60639]]
(2) Treatment with pasteurization or refrigeration as necessary to
bring the wine to commercial standards in accordance with acceptable
cellar practice but only in such a manner and to such an extent as not
to change the basic composition of the wine or eliminate any of its
characteristic elements;
(3) Treatment with methods and materials authorized for use under
part 24 of this chapter (such as correcting cloudiness, precipitation,
or abnormal color) to the minimum extent necessary to correct the wine;
(4) Treatment with constituents naturally present in the kind of
fruit or other agricultural product from which the wine is produced for
the purpose of correcting deficiencies of these constituents, but only
to the extent that such constituents would be present in normal wines
of the same class or type not so treated;
(5) Treatment of any class or type of wine involving the use of
volatile fruit-flavor concentrates in the manner provided in section
5382 of the Internal Revenue Code; and
(6) In accordance with the provisions of Sec. Sec. 4.143 through
4.157, carbon dioxide may be used to maintain counterpressure during
the transfer of finished sparkling wines from bulk processing tanks to
bottles, or from bottle to bottle, provided that the carbon dioxide
content of the wine shall not be increased by more than 0.009 gram. per
100 mL during the transfer operation.
Sec. 4.155 [Reserved]
Grape Type Labeling
Sec. 4.156 Varietal (grape type) labeling as type designations.
(a) General. The names of one or more grape varieties may be used
as the type designation of a grape wine only if the wine is also
labeled with an appellation of origin, as defined in Sec. 4.88.
(b) Use of one variety name. Except as otherwise provided in
paragraph (c)(1) or (2) of this section, the name of a single grape
variety may appear as a type designation on a wine label only if:
(1) Not less than 75 percent of the wine is derived from grapes of
that variety, and
(2) The entire qualifying percentage of the named variety was grown
in the area described by the labeled appellation of origin.
(c) Exceptions. (1) Wine made from any Vitis labrusca variety
(exclusive of hybrids with Vitis labrusca parentage) may be labeled
with the variety name if:
(i) Not less than 51 percent of the wine is derived from grapes of
the named variety;
(ii) The following statement is shown on any label: ``contains not
less than 51 percent (name of variety).'' This statement does not have
to appear if 75 percent or more of the wine is derived from grapes of
the named variety; and
(iii) The entire qualifying percentage of the named variety was
grown in the labeled appellation of origin area.
(2) Wine made from any variety of any species found by the
appropriate TTB officer upon appropriate application to be too strongly
flavored at 75 percent minimum varietal content may be labeled with the
varietal name if:
(i) Not less than 51 percent of the wine is derived from grapes of
that variety;
(ii) The statement ``contains not less than 51 percent (name of
variety)'' is shown on the label (except that this statement need not
appear if 75 percent or more of the wine is derived from grapes of the
named variety); and
(iii) The entire qualifying percentage of the named variety was
grown in the labeled appellation of origin.
(d) Two or more varieties. The names of two or more grape varieties
may be used as the type designation if:
(1) Not less than 85 percent of the wine is derived from grapes of
the labeled varieties;
(2) The wine derived each grape variety listed on the label is in
greater proportion than wine derived from grapes of any variety that is
not listed; and
(3) The varieties must be listed in descending order of
predominance, based on the percentage of wine derived from each variety
of grape.
(e) List of approved variety names for American wine. The name of a
grape variety may be used in a type designation for an American wine
only if that name has been approved by the Administrator. A list of
approved grape variety names appears in subpart J of this part.
(f) List of administratively approved grape variety names. TTB
administratively approves grape variety names pending future
rulemaking. An administrative approval is temporary in nature, and it
means that TTB will allow the use of the grape variety name as a type
designation on a wine label pending rulemaking. An administrative
approval may be revoked as a result of subsequent rulemaking on the
grape variety name. See the TTB website, at https://www.ttb.gov for a
list of administratively approved grape variety names.
Sec. 4.157 Type designations of varietal significance for American
wines.
This section specifies type designations of varietal significance
that are used for American wines. A name specified in this section may
appear on a label as a type designation for American wine only if the
wine is also labeled with an appellation of origin as defined in Sec.
4.157.
(a) Muscadine. Muscadine is the name of an American wine that
derives at least 75 percent of its volume from Muscadinia rotundifolia
grapes.
(b) Muscatel. Muscatel is the name of a American wine that derives
its predominant taste, aroma, and characteristics, and at least 75
percent of its volume from any Muscat grape source, and that conforms
to the standards specified in Sec. 4.142(c)(11).
(c) Muscat or moscato. Muscat or moscato is the name of an American
wine that derives at least 75 percent of its volume from any Muscat
grape source.
(d) Scuppernong. Scuppernong is the name of an American wine that
derives at least 75 percent of its volume from bronze Muscadinia
rotundifolia grapes.
Sec. 4.158 [Reserved]
Generic, Semi-Generic, and Non-Generic Designations of Geographic
Significance
Sec. 4.173 Generic designations of geographic significance.
(a) Definition. A generic designation is the name of a class or
type of wine that once had geographic significance but has been deemed
by the Administrator to have lost any geographic significance.
(b) List of generic designations. Vermouth and Sak[eacute] are
generic designations that may be used as a class or type designation,
in accordance with subpart I of this part.
Sec. 4.174 Semi-generic designations of geographic significance.
(a) Definition. A semi-generic designation of geographic
significance is a geographic term which is also the designation of a
class or type of wine and which has been deemed to have become semi-
generic by the Administrator. A semi-generic designation may be used to
designate wine of an origin other than that indicated by such name only
when used in accordance with the rules set forth in paragraph (c) of
this section.
(b) List of semi-generic designations of geographic significance.
Each of the following names has been found to be semi-generic:
(1) Angelica (associated with wine from the United States);
(2) Burgundy (associated with wine from France);
(3) Chablis (associated with wine from France);
[[Page 60640]]
(4) Champagne (associated with wine from France);
(5) Chianti (associated with wine from Italy);
(6) Claret (associated with wine from France);
(7) Haut Sauterne (associated with wine from France);
(8) Madeira (associated with wine from Portugal);
(9) Hock (associated with wine from Germany);
(10) Malaga (associated with wine from Spain),
(11) Marsala (associated with wine from Italy);
(12) Moselle (associated with wine from France);
(13) Port (associated with wine from Portugal);
(14) Retsina (associated with wine from Greece);
(15) Rhine wine (associated with wine from Germany);
(16) Sauterne (associated with wine from France);
(17) Sherry (associated with wine from Spain); and
(18) Tokay (associated with wine from Hungary).
(c) Use of authorized semi-generic designations of geographic
significance. A semi-generic designation of geographic significance may
be used to designate wines of an origin other than that indicated by
such name only if:
(1) There appears an appropriate appellation of origin disclosing
the true place of origin of the wine in the same field of vision as the
semi-generic designation;
(2) The person, or the successor in interest of a person, using a
semi-generic designation name listed in paragraphs (b)(2) through (18)
of this section, held a COLA or a certificate of exemption from label
approval (see Sec. 4.22) issued before March 10, 2006, for a wine
label bearing the same brand name or brand name and a distinctive or
fanciful name and on which the semi-generic designation appeared; and
(3) The wine so designated conforms to the standard of identity, if
any, for such wine contained in the regulations in this part or, if
there is no such standard, to the trade understanding of such class or
type.
(d) Imported wine originating from the place indicated by the name.
In the case of wine originating from the place indicated by the name,
the semi-generic designation may be used to designate the wine only if:
(1) The wine conforms either to the standard of identity specified
for the wine in subpart I of this part or, if no such standard exists,
to the trade understanding of the class or type of the wine; and
(2) The wine conforms to the requirements of the foreign laws and
regulations that govern the composition, method of production, and
designation of wines available for consumption within the country of
origin.
Sec. 4.175 Nongeneric designation of geographic significance and
nongeneric designations that are distinctive designations of specific
grape wines.
(a) Definition. A nongeneric designation of geographic significance
is a name of geographic significance that has not been found by the
Administrator to be generic or semi-generic. A nongeneric name of
geographic significance may be deemed to be the distinctive designation
of a wine if the Administrator finds that it is known to the consumer
and to the trade as the designation of a specific wine of a particular
place or region, distinguishable from all other wines.
(b) Use of nongeneric designations of geographic significance.
Nongeneric designations of geographic significance are appellation of
origin names that may be used only to designate wines of the origin
indicated by such name in accordance with Sec. Sec. 4.88 through 4.91,
as applicable. Examples of nongeneric names that are not distinctive
designations of specific grape wines are American, California, Lake
Erie, Napa Valley, New York State, French, and Spanish. Additional
examples of foreign nongeneric names are listed in subpart C of part 12
of this chapter.
(c) Use of nongeneric names that are distinctive designations of
specific grape wines. Nongeneric designations of geographic
significance are appellation of origin names that may be used only to
designate wines of the origin indicated by such name in accordance with
Sec. Sec. 4.88 through 4.91, as applicable, and that may also be used
as the class and type designation of the wine. Examples of nongeneric
names that are distinctive designations of specific grape wines are:
Bordeaux Blanc, Bordeaux Rouge, Graves, Medoc, Saint-Julien, Chateau
Yquem, Chateau Margaux, Chateau Lafite, Pommard, Chambertin,
Montrachet, Rhone, Liebfraumilch, Rudesheimer, Forster, Deidesheimer,
Schloss Johannisberger, Lagrima, and Lacryma Christi. A list of foreign
distinctive designations, as determined by the Administrator, appears
in subpart D of part 12 of this chapter.
Sec. 4.176-4.177 [Reserved]
Subpart J--American Grape Variety Names
Sec. 4.191 Approval of grape variety names.
(a) Any interested person may petition the Administrator for the
approval of a grape variety name. The petition may be in the form of a
letter and should provide evidence of the following:
(1) Acceptance of the new grape variety;
(2) The validity of the name for identifying the grape variety;
(3) That the variety is used or will be used in winemaking; and
(4) That the variety is grown and used in the United States.
(b) For the approval of names of new grape varieties, documentation
submitted with the petition to provide evidence that the requirements
in paragraph (a) of this section have been met may include:
(1) Reference to the publication of the name of the variety in a
scientific or professional journal of horticulture or a published
report by a professional, scientific or winegrowers' organization;
(2) Reference to a plant patent, if so patented; and
(3) Information pertaining to the commercial potential of the
variety, such as the acreage planted and its location or market
studies.
(c) The Administrator will not approve a grape variety name if:
(1) The name has previously been used for a different grape
variety;
(2) The name contains a term or name found to be misleading under
Sec. 4.122; or
(3) The name of a new grape variety contains the term ``Riesling.''
(d) For new grape varieties developed in the United States, the
Administrator may determine if the use of names which contain words of
geographical significance, place names, or foreign words are misleading
under Sec. 4.122. The Administrator will not approve the use of a
grape variety name found to be misleading.
(e) TTB administratively approves grape variety names pending
future rulemaking. An administrative approval is temporary in nature,
and it means that TTB will allow the use of the grape variety name as a
type designation on a wine label pending rulemaking. An administrative
approval may be revoked as a result of subsequent rulemaking on the
grape variety name. The list of administratively approved grape variety
names can be found on TTB's website at https://www.ttb.gov.
[[Page 60641]]
Sec. 4.192 List of approved names.
The following grape variety names have been approved by the
Administrator for use as type designations for American wines. When
more than one name may be used to identify a single variety of grape,
the synonym is shown in parentheses following the grape variety name.
Grape variety names may be spelled with or without the hyphens or
diacritic marks indicated in the list. The list of grape variety names
administratively approved under Sec. 4.191(e) is available on the TTB
website at https://www.ttb.gov.
Aglianico
Agawam
Albari[ntilde]o (Alvarinho)
Albemarle
Aleatico
Alicante Bouschet
Aligot[eacute]
Alvarelh[atilde]o
Alvarinho (Albari[ntilde]o)
Arneis
Aurore
Auxerrois
Bacchus
Baco blanc
Baco noir
Barbera
Beacon
Beclan
Bellandais
Beta
Biancolella
Black Corinth
Black Malvoisie (Cinsaut)
Black Monukka
Black Muscat (Muscat Hamburg)
Black Pearl
Blanc Du Bois
Blaufr[auml]nkish (Lemberger, Limberger)
Blue Eye
Bonarda
Bountiful
Brianna
Burdin 4672
Burdin 5201
Burdin 11042
Burgaw
Burger
Cabernet Diane
Cabernet Dor[eacute]
Cabernet franc
Cabernet Pfeffer
Cabernet Sauvignon
Calzin
Campbell Early (Island Belle)
Canada Muscat
Canaiolo (Canaiolo Nero)
Canaiolo Nero (Canaiolo)
Captivator
Carignan (Carignane)
Carignane (Carignan)
Carlos
Carmen[egrave]re
Carmine
Carnelian
Cascade
Castel 19-637
Catawba
Cayuga White
Centurion
Chambourcin
Chancellor
Charbono
Chardonel
Chardonnay
Chasselas dor[eacute]
Chelois
Chenin blanc
Chief
Chowan
Cinsaut (Black Malvoisie)
Clairette blanche
Clinton
Colombard (French Colombard)
Colobel
Corot noir
Cortese
Corvina
Concord
Conquistador
Couderc noir
Counoise
Cowart
Creek
Crimson Cabernet
Cynthiana (Norton)
Dearing
De Chaunac
Delaware
Diamond
Dixie
Dolcetto
Doreen
Dornfelder
Dulcet
Durif (Petite Sirah)
Dutchess
Early Burgundy
Early Muscat
Edelweiss
Eden
Ehrenfelser
Ellen Scott
Elvira
Emerald Riesling
Erbaluce
Favorite
Feher Szagos
Fern[atilde]o Pires
Fern Munson
Fiano
Flame Tokay
Flora
Florental
Folle blanche
Forastera
Fredonia
Freedom
Freisa
French Colombard (Colombard)
Frontenac
Frontenac gris
Fry
Fum[eacute] blanc (Sauvignon blanc)
Furmint
Gamay noir
Garnacha (Grenache, Grenache noir)
Garnacha blanca (Grenache blanc)
Garronet
Geneva Red 7
Gew[uuml]rztraminer
Gladwin 113
Glennel
Gold
Golden Isles
Golden Muscat
Graciano
Grand Noir
Green Hungarian
Grenache (Garnacha, Grenache noir)
Grenache blanc (Garnacha blanca)
Grenache noir (Garnacha, Grenache)
Grignolino
Grillo
Gros Verdot
Gr[uuml]ner Veltliner
Helena
Herbemont
Higgins
Horizon
Hunt
Iona
Interlaken
Isabella
Island Belle (Campbell Early)
Ives
James
Jewell
Joannes Seyve 12-428
Joannes Seyve 23-416
Kerner
Kay Gray
Kleinberger
La Crescent
LaCrosse
Lagrein
Lake Emerald
Lambrusco
Landal
Landot noir
Lenoir
L[eacute]on Millot
Lemberger (Blaufr[auml]nkish, Limberger)
Limberger (Blaufr[auml]nkisch, Lemberger)
Louise Swenson
Lucie Kuhlmann
Madeline Angevine
Magnolia
Magoon
Malbec
Malvasia bianca (Moscato greco)
Mammolo
Mar[eacute]chal Foch
Marquette
Marsanne
Mataro (Monastrell, Mourv[egrave]dre)
Melody
Melon (Melon de Bourgogne)
Melon de Bourgogne (Melon)
Merlot
Meunier (Pinot Meunier)
[[Page 60642]]
Mish
Mission
Missouri Riesling
Monastrell (Mataro, Mourv[egrave]dre)
Mondeuse (Refosco)
Montefiore
Montepulciano
Moore Early
Morio-Muskat
Moscato greco (Malvasia bianca)
Mourv[egrave]dre (Mataro, Monastrell)
M[uuml]ller-Thurgau
M[uuml]nch
Muscadelle
Muscat blanc (Muscat Canelli)
Muscat Canelli (Muscat blanc)
Muscat du Moulin
Muscat Hamburg (Black Muscat)
Muscat of Alexandria
Muscat Ottonel
Naples
Nebbiolo
N[eacute]grette
Negrara
Negro Amaro
Nero d'Avola
New York Muscat
Niagara
Noah
Noble
Noiret
Norton (Cynthiana)
Ontario
Orange Muscat
Palomino
Pamlico
Pedro Ximenes
Peloursin
Petit Bouschet
Petit Manseng
Petit Verdot
Petite Sirah (Durif)
Peverella
Picpoul (Piquepoul blanc)
Pinotage
Pinot blanc
Pinot Grigio (Pinot gris)
Pinot gris (Pinot Grigio)
Pinot Meunier (Meunier)
Pinot noir
Piquepoul blanc (Picpoul)
Prairie Star
Precoce de Malingre
Pride
Primitivo
Princess
Rayon d'Or
Ravat 34
Ravat 51 (Vignoles)
Ravat noir
Redgate
Refosco (Mondeuse)
Regale
Reliance
Riesling (White Riesling)
Rkatsiteli (Rkatziteli)
Rkatziteli (Rkatsiteli)
Roanoke
Rondinella
Rosette
Roucaneuf
Rougeon
Roussanne
Royalty
Rubired
Ruby Cabernet
St. Croix
St. Laurent
St. Pepin
St. Vincent
Sabrevois
Sagrantino
Saint Macaire
Salem
Salvador
Sangiovese
Sauvignon blanc (Fum[eacute] blanc)
Sauvignon gris
Scarlet
Scheurebe
S[eacute]millon
Sereksiya
Seyval (Seyval blanc)
Seyval blanc (Seyval)
Shiraz (Syrah)
Siegerrebe
Siegfried
Southland
Souz[atilde]o
Steuben
Stover
Sugargate
Sultanina (Thompson Seedless)
Summit
Suwannee
Sylvaner
Symphony
Syrah (Shiraz)
Swenson Red
Tannat
Tarheel
Taylor
Tempranillo (Valdepe[ntilde]as)
Teroldego
Thomas
Thompson Seedless (Sultanina)
Tinta Madeira
Tinto c[atilde]o
Tocai Friulano
Topsail
Touriga
Traminer
Traminette
Trebbiano (Ugni blanc)
Trousseau
Trousseau gris
Ugni blanc (Trebbiano)
Valdepe[ntilde]as (Tempranillo)
Valdigui[eacute]
Valerien
Valiant
Valvin Muscat
Van Buren
Veeblanc
Veltliner
Ventura
Verdelet
Verdelho
Vergennes
Vermentino
Vidal blanc
Vignoles (Ravat 51)
Villard blanc
Villard noir
Vincent
Viognier
Vivant
Welsch Rizling
Watergate
Welder
White Riesling (Riesling)
Wine King
Yuga
Zinfandel
Zinthiana
Zweigelt
Sec. 4.193 Alternative names permitted for temporary use.
(a) Johannisberg Riesling. The name ``Johannisberg Riesling'' may
be used as the type designation in lieu of ``Riesling'' for wines
bottled prior to January 1, 2006.
(b) Agwam. The name ``Agwam'' may be used as the type designation
in lieu of ``Agawam'' for wines bottled prior to October 29, 2012.
Subpart K--Standards of Fill and Authorized Container Sizes
Sec. 4.201 General.
(a) Except as provided in paragraph (b) of this section, no person
engaged in business as a producer, blender, importer, or wholesaler of
wine, directly or indirectly, or through an affiliate, may sell or ship
or deliver for sale or shipment, or otherwise introduce in interstate
or foreign commerce, or receive therein, or remove from customs custody
for consumption, any wine in containers, unless the wine is bottled in
conformity with Sec. Sec. 4.202 and 4.203.
(b) Sections 4.202 and 4.203 do not apply to:
(1) Rice wine;
(2) Wine packed in containers of 18 liters or more;
(3) Imported wine in the original containers in which such wine
entered customs custody, if the wine was bottled or packed before
January 1, 1979; or
(4) Imported wine bottled or packed before January 1, 1979, and
certified as to such in a statement, available to the appropriate TTB
officer upon request, signed by an official duly authorized by the
appropriate foreign government.
(c) Section 4.203 does not apply to wine domestically bottled or
packed, either in or out of customs custody, before January 1, 1979, if
the wine was bottled or packed according to the standards of fill
(listed in ounces,
[[Page 60643]]
quarts, and gallons) prescribed by regulation before that date.
Sec. 4.202 Standard wine containers.
(a) General. Wine must be bottled in standard wine containers, as
defined in this paragraph. A standard wine container is a container
that is made, formed, and filled in such a way that it does not mislead
purchasers as regards it contents. An individual carton or other
container of a bottle may not be so designed as to mislead purchasers
as to the size of the bottle it contains.
(b) Headspace. Wine containers must be designed and filled so that
the headspace, or empty space between the top of the wine and the top
of the container, meets the following specifications:
(1) If the net contents stated on the label are 187 milliliters or
more, the headspace must not exceed 6 percent of the container's total
capacity after closure.
(2) In the case of all other containers, the headspace must not
exceed 10 percent of the container's total capacity after closure.
(c) Design. Regardless of the correctness of the stated net
contents, a wine container is deemed to mislead the purchaser if it is
made and formed in such a way that its actual capacity is substantially
less than the capacity it appears to have upon visual examination under
ordinary conditions of purchase or use.
(d) Fill. Containers must be filled with a quantity of wine that
corresponds to one of the authorized container sizes prescribed in
Sec. 4.203.
Sec. 4.203 Standards of fill (container sizes).
(a) Authorized standards of fill. Subject to the container
requirements set forth in Sec. 4.202, wine subject to this part must
be placed in one of the following authorized container sizes:
(1) 3 liters.
(2) 1.5 liters.
(3) 1 liter.
(4) 750 milliliters.
(5) 500 milliliters.
(6) 375 milliliters.
(7) 187 milliliters.
(8) 100 milliliters.
(9) 50 milliliters.
(b) Sizes larger than 3 liters. Wine may be bottled in containers
of 4 liters or larger if the containers are filled and labeled in
quantities of whole liters (4 liters, 5 liters, 6 liters, etc.). This
applies to containers that have a capacity of up to 17 liters.
(c) Tolerances. The tolerances in fill are the same as are allowed
by Sec. 4.62 in respect to statement of net contents on labels.
Sec. 4.204 Aggregate packaging to meet standard of fill requirements.
(a) Under the conditions set forth in paragraphs (b) through (f) of
this section, industry members may use aggregate packaging to satisfy a
standard of fill required under Sec. 4.203. In other words, industry
members may bottle wine in containers that do not meet a standard of
fill, as long as those containers are then packaged together in a
larger container and the entire net contents of the aggregate package
meets a standard of fill. For example, thirty 25-milliliter (mL)
bottles may be packaged together to meet the 750 mL standard of fill.
The industry member must submit the actual external container and a
sample of one of the internal containers to TTB together with the
industry member's application for label approval.
(b) The class and type, tax class, and alcohol content of the wine
in each of the individual internal containers of the aggregate package
must be the same.
(c) The external container, as well as each of the individual
internal containers, must be labeled with all of the mandatory label
information required by this part and parts 16 and 24 of this chapter;
however, an appropriate standard of fill is not required for internal
containers.
(d) The external container must include a net contents statement
that indicates how the aggregate package equals an authorized standard
of fill (for example, ``750 mL = 30 containers of 25 mL each''). The
internal container must include a net contents statement in accordance
with Sec. 4.68.
(e) The external container must be shrink-wrapped, boxed, or sealed
in such a manner that the smaller containers cannot be easily removed.
(f) Each of the smaller containers must be labeled ``NOT FOR
INDIVIDUAL SALE.''
Subpart L--Recordkeeping and Substantiation Requirements
Sec. 4.211 Recordkeeping requirements--certificates.
(a) Certificates of label approval (COLAs). Upon request by the
appropriate TTB officer, a bottler or importer must provide evidence
that a container of wine is covered by a COLA or a certificate of
exemption. This requirement may be satisfied by providing original
certificates, photocopies or electronic copies of COLAs, or records
showing the TTB Identification number assigned to the COLA. TTB may
request such information for a period of five years from the date that
the products covered by the COLA were removed from the bottler's
premises or from customs custody, as applicable.
(b) Labels with revisions. Where labels on containers reflect
revisions to the approved label that have been made in compliance with
allowable revisions authorized by TTB Form 5100.31 or otherwise
authorized by TTB, the bottler or importer must, upon request by the
appropriate TTB officer, identify the COLA covering the product if the
product is required to be covered by a COLA. TTB may request such
information for a period of five years from the date that the products
covered by the COLA were removed from the bottler's premises or from
customs custody, as applicable.
(c) Other recordkeeping requirements under this part. See Sec.
4.30 for other recordkeeping requirements under this part.
Sec. 4.212 Substantiation requirements.
(a) Application. The substantiation requirements of this section
apply to any claim made on any label or container subject to the
requirements of this part.
(b) Reasonable basis in fact. All claims, whether implicit or
explicit, must have a reasonable basis in fact. Claims that contain
express or implied statements regarding the amount of support for the
claim (such as ``tests prove,'' or ``studies show'') must have the
level of substantiation that is claimed. Any labeling claim that does
not have a reasonable basis in fact, or cannot be adequately
substantiated upon the request of the appropriate TTB officer, will be
considered misleading within the meaning of Sec. 4.122(b)(2).
(c) Evidence that claims are adequately substantiated. The
appropriate TTB officer may request that bottlers and importers provide
evidence that labeling claims are adequately substantiated at any time
within a period of five years from the time the wine was removed from
the bottling premises or from customs custody, as applicable.
Subpart M--Penalties and Compromise of Liability
Sec. 4.221 Criminal penalties.
A violation of the labeling provisions of 27 U.S.C. 205(e) is
punishable as a misdemeanor. See 27 U.S.C. 207 for the statutory
provisions relating to criminal penalties, consent decrees, and
injunctions.
Sec. 4.222 Conditions of basic permit.
A basic permit is conditioned upon compliance with the requirements
of 27 U.S.C. 205, including the labeling
[[Page 60644]]
provisions of this part. A willful violation of the conditions of a
basic permit provides grounds for the revocation or suspension of the
permit, as applicable, as set forth in part 1 of this chapter.
Sec. 4.223 Compromise.
Pursuant to 27 U.S.C. 207, the appropriate TTB officer is
authorized, with respect to any violation of 27 U.S.C. 205, to
compromise the liability arising with respect to such violation upon
payment of a sum not in excess of $500 for each offense, to be
collected by the appropriate TTB officer and to be paid into the
Treasury as miscellaneous receipts.
Subpart N--Paperwork Reduction Act
Sec. 4.231 OMB control numbers assigned under the Paperwork Reduction
Act.
(a) Purpose. This subpart displays the control numbers assigned to
information collection requirements in this part by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995,
Public Law 104-13.
(b) Chart. The following chart identifies each section in this part
that contains an information collection requirement and the OMB control
number that is assigned to that information collection requirement.
------------------------------------------------------------------------
Section where contained Current OMB Control No.
------------------------------------------------------------------------
4.21...................................... 1513-0020.
4.22...................................... 1513-0020, 1513-0111.
4.23...................................... 1513-0020, 1513-0111.
4.24...................................... 1513-0020, 1513-0064.
4.25...................................... 1513-0020, 1513-0111.
4.27...................................... 1513-0020.
4.28...................................... 1513-0122.
4.30...................................... 1513-0064, 1513-0119, New
control number.
4.62...................................... 1513-0087.
4.63...................................... 1513-0084, 1513-0087.
4.81...................................... 1513-0087, 1513-0121.
4.82...................................... 1513-0087, 1513-0121.
4.83...................................... 1513-0087.
4.84...................................... 1513-0087.
4.85...................................... 1513-0087.
4.86...................................... 1513-0087.
4.87...................................... 1513-0087.
4.88...................................... 1513-0087.
4.89...................................... 1513-0087.
4.90...................................... 1513-0087.
4.91...................................... 1513-0087.
4.92...................................... 1513-0087.
4.93...................................... 1513-0087.
4.94...................................... 1513-0087.
4.95...................................... 1513-0087.
4.96...................................... 1513-0087.
4.97...................................... 1513-0087.
4.98...................................... 1513-0087.
4.121..................................... 1513-0087.
4.122..................................... 1513-0087.
4.123..................................... 1513-0087.
4.124..................................... 1513-0087.
4.125..................................... 1513-0087.
4.126..................................... 1513-0087.
4.127..................................... 1513-0087.
4.128..................................... 1513-0087.
4.129..................................... 1513-0087.
4.130..................................... 1513-0087.
4.131..................................... 1513-0087.
4.133..................................... 1513-0087.
4.134..................................... 1513-0087.
4.135..................................... 1513-0087.
4.136..................................... 1513-0087.
4.201..................................... 1513-0064.
4.211..................................... New control number.
4.212..................................... New control number.
------------------------------------------------------------------------
0
2. Revise part 5 to read as follows:
PART 5--LABELING OF DISTILLED SPIRITS
Sec.
5.0 Scope.
Subpart A--General Provisions
5.1 Definitions.
5.2 Territorial extent.
5.3 General requirements and prohibitions under the FAA Act.
5.4-5.6 [Reserved]
5.7 Other TTB labeling regulations that apply to distilled spirits.
5.8 Distilled spirits for export.
5.9 Compliance with Federal and State requirements.
5.10 Other related regulations.
5.11 Forms.
5.12 Delegations of the Administrator.
Subpart B--Certificates of Label Approval and Certificates of Exemption
From Label Approval
Requirements for Distilled Spirits Bottled in the United States
5.21 Requirement for certificates of label approval (COLAs) for
distilled spirits bottled in the United States.
5.22 Rules regarding certificates of label approval (COLAs) for
distilled spirits bottled in the United States.
5.23 Application for exemption from label approval for distilled
spirits bottled in the United States.
Requirements for Distilled Spirits Imported in Containers
5.24 Certificates of label approval (COLAs) for distilled spirits
imported in containers.
5.25 Rules regarding certificates of label approval (COLAs) for
distilled spirits imported in containers.
Administrative Rules
5.27 Presenting certificates of label approval (COLAs) to Government
officials.
5.28 Formulas, samples, and documentation.
5.29 Personalized labels.
5.30 Certificates of age and origin for imported spirits.
Subpart C--Alteration of Labels, Relabeling, and Adding Information to
Containers
5.41 Alteration of labels.
5.42 Authorized relabeling activities by distillers and importers.
5.43 Relabeling activities that require separate written
authorization from TTB.
5.44 Adding a label or other information to a container that
identifies the wholesaler, retailer, or consumer.
Subpart D--Label Standards
5.51 Firmly affixed requirements.
5.52 Legibility and other requirements for mandatory information on
labels.
5.53 Minimum type size of mandatory information.
5.54 Visibility of mandatory information.
5.55 Language requirements.
5.56 Additional information.
Subpart E--Mandatory Label Information
5.61 What constitutes a label for purposes of mandatory information.
5.62 Packaging (cartons, coverings, and cases).
5.63 Mandatory label information.
5.64 Brand name.
5.65 Alcohol content.
5.66 Name and address for domestically bottled distilled spirits
that were wholly made in the United States.
5.67 Name and address for domestically bottled distilled spirits
that were bottled after importation.
5.68 Name and address for distilled spirits that were imported in a
container.
5.69 Country of origin.
5.70 Net contents.
5.71 Neutral spirits and name of commodity.
5.72 Coloring materials.
5.73 Treatment of whisky or brandy with wood.
5.74 Statements of age, storage, and percentage.
Subpart F--Restricted Labeling Statements
5.81 General.
Food Allergen Labeling
5.82 Voluntary disclosure of major food allergens.
5.83 Petitions for exemption from major food allergen labeling.
Production Claims
5.84 Use of the term ``organic.''
5.85 Environmental, sustainability, and similar statements.
5.86 [Reserved]
Other Label Terms
5.87 ``Barrel Proof'' and similar terms.
5.88 Bottled in bond.
5.89 Multiple distillation claims.
5.90 Terms related to Scotland.
5.91 Use of the term ``pure.''
Subpart G--Prohibited Labeling Practices
5.101 General.
5.102 False or untrue statements.
5.103 Obscene or indecent depictions.
Subpart H--Labeling Practices That Are Prohibited If They Are
Misleading
5.121 General.
[[Page 60645]]
5.122 Misleading statements or representations.
5.123 Guarantees.
5.124 Disparaging statements.
5.125 Tests or analyses.
5.126 Depictions of government symbols.
5.127 Depictions simulating government stamps or relating to
supervision.
5.128 Claims related to wine or malt beverages.
5.129 Health-related statements.
5.130 Appearance of endorsement.
Subpart I--Standards of Identity for Distilled Spirits
5.141 The standards of identity in general.
5.142 Neutral spirits or alcohol.
5.143 Whisky.
5.144 Gin.
5.145 Brandy.
5.146 Blended applejack.
5.147 Rum.
5.148 Agave spirits.
5.149 Absinthe or absinth.
5.150 Cordials and liqueurs.
5.151 Flavored spirits.
5.152 Imitations.
5.153 Diluted spirits.
5.154 Rules for geographical designations.
5.155 Alteration of class and type.
5.156 Distilled spirits specialty products.
5.157-5.165 [Reserved]
5.166 Statement of composition.
Subpart J--Formulas
5.191 Application.
5.192 Formula requirements.
5.193 Operations requiring formulas.
5.194 Adoption of predecessor's formulas.
Subpart K--Standards of Fill and Authorized Container Sizes
5.201 General.
5.202 Standard liquor containers.
5.203 Standards of fill (container sizes).
5.204 Aggregate packaging to meet standard of fill requirements.
5.205 Distinctive liquor bottle approval.
Subpart L--Recordkeeping and Substantiation Requirements
5.211 Recordkeeping requirements--certificates.
5.212 Substantiation requirements.
Subpart M--Penalties and Compromise of Liability
5.221 Criminal penalties.
5.222 Conditions of basic permit.
5.223 Compromise.
Subpart N--Paperwork Reduction Act
5.231 OMB control numbers assigned under the Paperwork Reduction
Act.
Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205 and 207.
Sec. 5.05.0 Scope.
This part sets forth requirements that apply to the labeling and
packaging of distilled spirits in containers, including requirements
for label approval and rules regarding mandatory, regulated, and
prohibited labeling statements.
Subpart A--General Provisions
Sec. 5.15.1 Definitions.
When used in this part and on forms prescribed under this part, the
following terms have the meaning assigned to them in this section,
unless the terms appear in a context that requires a different meaning.
Any other term defined in the Federal Alcohol Administration Act (FAA
Act) and used in this part has the same meaning assigned to it by the
FAA Act.
Administrator. The Administrator, Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
Age. The length of time during which, after distillation and before
bottling, the distilled spirits have been stored in oak barrels in such
a manner that chemical changes take place as a result of direct contact
with the wood. For bourbon whisky, rye whisky, wheat whisky, malt
whisky, or rye malt whisky, and straight whiskies other than straight
corn whisky, aging must occur in charred new oak barrels.
American proof. See Proof.
Appropriate TTB officer. An officer or employee of the Alcohol and
Tobacco Tax and Trade Bureau (TTB) authorized to perform any function
relating to the administration or enforcement of this part by the
current version of TTB Order 1135.5, Delegation of the Administrator's
Authorities, in 27 CFR part 5, Labeling of Distilled Spirits.
Bottler. Any distiller or processor of distilled spirits who places
distilled spirits in containers.
Brand name. The name under which a distilled spirit or line of
distilled spirits is sold.
Certificate holder. The permittee or brewer whose name, address,
and basic permit number, plant registry number, or brewer's notice
number appears on an approved TTB Form 5100.31.
Certificate of exemption from label approval. A certificate issued
on TTB Form 5100.31, which authorizes the bottling of wine or distilled
spirits, under the condition that the product will under no
circumstances be sold, offered for sale, shipped, delivered for
shipment, or otherwise introduced by the applicant, directly or
indirectly, into interstate or foreign commerce.
Certificate of label approval (COLA). A certificate issued on TTB
Form 5100.31 that authorizes the bottling of wine, distilled spirits,
and malt beverages, or the removal of bottled wine, distilled spirits,
and malt beverages from customs custody for introduction into commerce,
as long as the product bears labels identical to the labels appearing
on the face of the certificate, or labels with changes authorized by
TTB on the certificate or otherwise.
Container. Any can, bottle, box with an internal bladder, cask,
keg, or other closed receptacle, in any size or material, that is for
use in the sale of distilled spirits at retail. See subpart K of this
part for rules regarding authorized standards of fill for containers.
Customs officer. An officer of U.S. Customs and Border Protection
(CBP) or any agent or other person authorized by law to perform the
duties of such an officer.
Distilled spirits. Ethyl alcohol, hydrated oxide of ethyl, spirits
of wine, whisky, rum, brandy, gin, and other distilled spirits,
including all dilutions and mixtures thereof, for nonindustrial use.
The term ``distilled spirits'' does not include mixtures containing
wine, bottled at 48 degrees of proof or less, if the mixture contains
more than 50 percent wine on a proof gallon basis. The term ``distilled
spirits'' also does not include products containing less than 0.5
percent alcohol by volume.
Distilling season. The period from January 1 through June 30, which
is the spring distilling season, or the period from July 1 through
December 31, which is the fall distilling season.
Distinctive or fanciful name. A descriptive name or phrase chosen
to identify a distilled spirits product on the label. It does not
include a brand name, class or type designation, or statement of
composition.
FAA Act. The Federal Alcohol Administration Act.
Gallon. A U.S. gallon of 231 cubic inches at 60 degrees Fahrenheit.
Grain. Includes cereal grains and the seeds of the pseudocereals
amaranth, buckwheat, and quinoa.
In bulk. In barrels or other receptacles having a capacity in
excess of 1 wine gallon (3.785 liters).
Interstate or foreign commerce. Commerce between any State and any
place outside of that State or commerce within the District of Columbia
or commerce between points within the same State but through any place
outside of that State.
Liter or litre. A metric unit of capacity equal to 1,000 cubic
centimeters or 1,000 milliliters (mL) of distilled spirits at 15.56
degrees Celsius (60 degrees Fahrenheit), and equivalent to 33.814 U.S.
fluid ounces.
Net contents. The amount, by volume, of distilled spirits held in a
container.
Oak barrel. A cylindrical oak drum of approximately 50 gallons used
to age bulk spirits.
Permittee. Any person holding a basic permit under the FAA Act.
[[Page 60646]]
Person. Any individual, corporation, partnership, association,
joint-stock company, business trust, limited liability company, or
other form of business enterprise, including a receiver, trustee, or
liquidating agent and including an officer or employee of any agency of
a State or political subdivision of a State.
Produced at or distilled at. When used with reference to specific
degrees of proof of a distilled spirits product, the phrases ``produced
at'' and ``distilled at'' mean the composite proof of the distilled
spirits after completion of distillation and before reduction in proof,
if any.
Proof. The ethyl alcohol content of a liquid at 60 degrees
Fahrenheit, stated as twice the percentage of ethyl alcohol by volume.
Proof gallon. A gallon of liquid at 60 degrees Fahrenheit that
contains 50 percent by volume of ethyl alcohol having a specific
gravity of 0.7939 at 60 degrees Fahrenheit, referred to water at 60
degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
Spirits. See Distilled spirits.
State. One of the 50 States of the United States, the District of
Columbia, or the Commonwealth of Puerto Rico.
TTB. The Alcohol and Tobacco Tax and Trade Bureau of the Department
of the Treasury.
United States (U.S.). The 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
Sec. 5.25.2 Territorial extent.
The provisions of this part apply to the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
Sec. 5.35.3 General requirements and prohibitions under the FAA Act.
(a) Certificates of label approval (COLAs). Subject to the
requirements and exceptions set forth in the regulations in subpart B
of this part, any bottler of distilled spirits, and any person who
removes distilled spirits in containers from customs custody for sale
or any other commercial purpose, is required to first obtain from TTB a
COLA covering the label(s) on each container.
(b) Alteration, mutilation, destruction, obliteration, or removal
of labels. Subject to the requirements and exceptions set forth in the
regulations in subpart C of this part, it is unlawful to alter,
mutilate, destroy, obliterate, or remove labels on distilled spirits
containers. This prohibition applies to any person, including
retailers, holding distilled spirits for sale in interstate or foreign
commerce or any person holding distilled spirits for sale after
shipment in interstate or foreign commerce.
(c) Labeling requirements for distilled spirits. It is unlawful for
any person engaged in business as a bottler, wholesaler, or importer of
distilled spirits, directly or indirectly, or through an affiliate, to
sell or ship, or deliver for sale or shipment, or otherwise introduce
or receive in interstate or foreign commerce, or remove from customs
custody, any distilled spirits in containers unless the distilled
spirits are bottled in containers, and the containers are marked,
branded and labeled, in conformity with the regulations in this part.
(d) Labeled in accordance with this part. In order to be labeled in
accordance with the regulations in this part, a container of distilled
spirits must be in compliance with the following requirements:
(1) It must bear one or more label(s) meeting the standards for
``labels'' set forth in subpart D of this part;
(2) One or more of the labels on the container must include the
mandatory information set forth in subpart E of this part;
(3) Claims on any label, container, or packaging (as defined in
Sec. 5.82) must comply with the rules for regulated label statements,
as applicable, set forth in subpart F of this part;
(4) Statements or any other representations on any label,
container, or packaging (as defined in Sec. Sec. 5.81(b) and 5.121(b))
may not violate the regulations in subparts G and H of this part
regarding certain practices on labeling of distilled spirits;
(5) The class and type designation on the label(s), as well as any
designation appearing on containers or packaging must comply with the
standards of identity set forth in subpart I of this part; and
(6) The distilled spirits in the container may not be adulterated
within the meaning of the Federal Food, Drug, and Cosmetic Act.
(e) Bottled in accordance with this part. In order to be bottled in
accordance with the regulations in this part, the distilled spirits
must be bottled in authorized standards of fill in containers that meet
the requirements of subpart K of this part.
Sec. Sec. 5.4Sec. 5.4-5.6 [Reserved]
Sec. 5.75.7 Other TTB labeling regulations that apply to distilled
spirits.
In addition to the regulations in this part, distilled spirits must
also comply with the following TTB labeling regulations:
(a) Health warning statement. Alcoholic beverages, including
distilled spirits, that contain at least half of one percent alcohol by
volume, must be labeled with a health warning statement, in accordance
with the Alcoholic Beverage Labeling Act of 1988 (ABLA). The
regulations implementing the ABLA are contained in 27 CFR part 16.
(b) Internal Revenue Code requirements. The labeling and marking
requirements for distilled spirits under the Internal Revenue Code are
found in 27 CFR part 19, subpart T (for domestic products) and 27 CFR
part 27, subpart E (for imported products).
Sec. 5.85.8 Distilled spirits for export.
Distilled spirits that are exported in bond without payment of tax
directly from a distilled spirits plant or from customs custody are not
subject to this part. For purposes of this section, direct exportation
in bond does not include exportation after distilled spirits have been
removed for consumption or sale in the United States, with appropriate
tax determination or payment.
Sec. 5.95.9 Compliance with Federal and State requirements.
(a) General. Compliance with the requirements of this part relating
to the labeling and bottling of distilled spirits does not relieve
industry members from responsibility for complying with other
applicable Federal and State requirements, including but not limited to
those highlighted in paragraphs (b) and (c) of this section.
(b) Ingredient safety. While it remains the responsibility of the
industry member to ensure that any ingredient used in production of
distilled spirits complies fully with all applicable U.S. Food and Drug
Administration (FDA) regulations pertaining to the safety of food
ingredients and additives, the appropriate TTB officer may at any time
request documentation to establish such compliance. As set forth in
Sec. 5.3(d), distilled spirits that are adulterated under the Federal
Food, Drug, and Cosmetic Act are not labeled in accordance with this
part.
(c) Containers. While it remains the responsibility of the industry
member to ensure that containers are made of suitable materials that
comply with all applicable FDA health and safety regulations for the
packaging of beverages for consumption, the appropriate TTB officer may
at any time request documentation to establish such compliance.
Sec. 5.10 Other related regulations.
(a) TTB regulations. Other TTB regulations that relate to distilled
spirits are listed in paragraphs (a)(1) through (9) of this section:
[[Page 60647]]
(1) 27 CFR part 1--Basic Permit Requirements Under the Federal
Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and
Wine, Bulk Sales and Bottling of Distilled Spirits;
(2) 27 CFR part 13--Labeling Proceedings;
(3) 27 CFR part 14--Advertising of Alcohol Beverage Products;
(4) 27 CFR part 16--Alcoholic Beverage Health Warning Statement;
(5) 27 CFR part 19--Distilled Spirits Plants;
(6) 27 CFR part 26--Liquors and Articles From Puerto Rico and the
Virgin Islands;
(7) 27 CFR part 27--Importation of Distilled Spirits, Wines, and
Beer;
(8) 27 CFR part 28--Exportation of Alcohol; and
(9) 27 CFR part 71--Rules of Practice in Permit Proceedings.
(b) Other Federal Regulations. The regulations listed in paragraphs
(b)(1) through (9) of this section issued by other Federal agencies
also may apply:
(1) 7 CFR part 205--National Organic Program;
(2) 19 CFR part 11--Packing and Stamping; Marking;
(3) 19 CFR part 102--Rules of Origin;
(4) 19 CFR part 134--Country of Origin Marking;
(5) 21 CFR part 1--General Enforcement Regulations, Subpart H,
Registration of Food Facilities, and Subpart I, Prior Notice of
Imported Food;
(6) 21 CFR parts 70-82, which pertain to food and color additives;
(7) 21 CFR part 101--Food Labeling;
(8) 21 CFR part 110--Current Good Manufacturing Practice in
Manufacturing, Packing, or Holding Human Food; and
(9) 21 CFR parts 170-189, which pertain to food additives and
secondary direct food additives.
Sec. 5.11 Forms.
(a) General. TTB prescribes and makes available all forms required
by this part. Any person completing a form must provide all of the
information required by each form as indicated by the headings on the
form and the instructions for the form. Each form must be filed in
accordance with this part and the instructions for the form.
(b) Electronically filing forms. The forms required by this part
can be filed electronically by using TTB's online filing systems: COLAs
Online and Formulas Online. Anyone who intends to use one of these
online filing systems must first register to use the system by
accessing the TTB website at https://www.ttb.gov.
(c) Obtaining paper forms. Forms required by this part are
available for printing through the TTB website (https://www.ttb.gov) or
by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau,
National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH
45202.
Sec. 5.12 Delegations of the Administrator.
Most of the regulatory authorities of the Administrator contained
in this part are delegated to ``appropriate TTB officers.'' To
determine which officers have been delegated specific authorities, see
the current version of TTB Order 1135.5, Delegation of the
Administrator's Authorities in 27 CFR part 5, Labeling of Distilled
Spirits. Copies of this order can be obtained by accessing the TTB
website (https://www.ttb.gov) or by mailing a request to the Alcohol
and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main
Street, Room 8002, Cincinnati, OH 45202.
Subpart B--Certificates of Label Approval and Certificates of
Exemption from Label Approval.
Requirements for Distilled Spirits Bottled in the United States
Sec. 5.21 Requirement for certificates of label approval (COLAs) for
distilled spirits bottled in the United States.
(a) This section applies to distilled spirits bottled in the United
States, outside of customs custody.
(b) No person may bottle distilled spirits without first applying
for and obtaining a COLA issued by the appropriate TTB officer. This
requirement applies to distilled spirits produced and bottled in the
United States and to distilled spirits imported in bulk, regardless of
where produced, and bottled in the United States. Bottlers may obtain
an exemption from this requirement only if they satisfy the conditions
set forth in Sec. 5.23.
Sec. 5.22 Rules regarding certificates of label approval (COLAs) for
distilled spirits bottled in the United States.
(a) What a COLA authorizes. An approved TTB Form 5100.31 authorizes
the bottling of distilled spirits covered by the COLA, as long as the
container bears labels identical to the labels appearing on the face of
the COLA, or labels with changes authorized by TTB on the COLA or
otherwise. The list of allowable changes can be found on the TTB
website at https://www.ttb.gov.
(b) What a COLA does not do. Among other things, the issuance of a
COLA does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from its responsibility to
ensure that all ingredients used in the production of the distilled
spirit comply with applicable requirements of the Food and Drug
Administration with regard to ingredient safety; or
(3) Relieve the certificate holder from liability for violations of
the FAA Act, the Alcohol Beverage Labeling Act of 1988, the Internal
Revenue Code, or related regulations and rulings.
(i) The issuance of a COLA does not mean that TTB has verified the
accuracy of any representations or claims made on the label with
respect to the product in the container. It is the responsibility of
the applicant to ensure that all information on the application is true
and correct, and that all labeling representations and claims are
truthful, accurate, and not misleading with respect to the product in
the container.
(ii) A distilled spirit may be mislabeled even when the label is
covered by a COLA. For example, if the label on the container contains
representations that are false or misleading when applied to the
product in the container, the distilled spirit is not labeled in
accordance with the regulations in this part, even if it is covered by
a COLA.
(c) When to obtain a COLA. The COLA must be obtained prior to
bottling. No bottler may bottle distilled spirits, or remove distilled
spirits from the premises where bottled, unless a COLA has been
obtained.
(d) Application for a COLA. The bottler may apply for a COLA by
submitting an application to TTB on Form 5100.31, in accordance with
the instructions on the form. The bottler may apply for a COLA either
electronically by accessing TTB's online system, COLAs Online, at
https://www.ttb.gov, or by submitting the paper form. For procedures
regarding the issuance of COLAs, see part 13 of this chapter.
Sec. 5.23 Application for exemption from label approval for
distilled spirits bottled in the United States.
(a) Exemption. Any bottler of distilled spirits may apply to be
exempt from the requirements of this part, by showing to the
satisfaction of the appropriate TTB officer that the distilled spirits
to be bottled are not to be sold, offered for sale, or shipped or
delivered for shipment, or otherwise introduced, in interstate or
foreign commerce.
(b) Application required. The bottler must file an application on
TTB Form 5100.31 for exemption from label approval before bottling the
distilled spirits. The bottler may apply for a
[[Page 60648]]
certificate of exemption from label approval either electronically, by
accessing TTB's online system, COLAs Online, at https://www.ttb.gov, or
by using the paper form. For procedures regarding the issuance of
certificates of exemption from label approval, see part 13 of this
chapter.
(c) Labeling of distilled spirits covered by certificate of
exemption. The application for a certificate of exemption from label
approval requires that the applicant identify the State in which the
product will be sold. As a condition of receiving exemption from label
approval, the label covered by an approved certificate of exemption
must include the statement ``For sale in [name of State] only.'' See
Sec. Sec. 19.517 and 19.518 of this chapter for additional labeling
rules that apply to distilled spirits covered by a certificate of
exemption.
Requirements for Distilled Spirits Imported in Containers
Sec. 5.24 Certificates of label approval (COLAs) for distilled
spirits imported in containers.
(a) Application requirement. Any person removing distilled spirits
in containers from customs custody for consumption must first apply for
and obtain a COLA covering the distilled spirits from the appropriate
TTB officer.
(b) Release of distilled spirits from customs custody. Distilled
spirits, imported in containers, are not eligible for release from
customs custody for consumption, and no person may remove such
distilled spirits from customs custody for consumption, unless the
person removing the distilled spirits has obtained and is in possession
of a COLA covering the distilled spirits.
(c) Filing requirements. If filing electronically, the importer
must file with U.S. Customs and Border Protection (CBP), at the time of
filing the customs entry, the TTB-assigned identification number of the
valid COLA that corresponds to the label on the brand or lot of
distilled spirits to be imported. If the importer is not filing
electronically, the importer must provide a copy of the COLA to CBP at
the time of entry. In addition, the importer must provide a copy of the
applicable COLA, and proof of the certificate holder's authorization if
applicable, upon request by the appropriate TTB officer or a customs
officer.
(d) Scope of this section. The COLA requirement imposed by this
section applies only to distilled spirits that are removed for sale or
any other commercial purpose. Distilled spirits that are imported in
containers are not eligible for a certificate of exemption from label
approval. See 27 CFR 27.49, 27.74, and 27.75 for labeling exemptions
applicable to certain imported samples of distilled spirits.
(e) Relabeling in customs custody. Containers of distilled spirits
in customs custody that are required to be covered by a COLA but are
not labeled in conformity with a COLA must be relabeled, under the
supervision and direction of customs officers, prior to their removal
from customs custody for consumption.
Sec. 5.25 Rules regarding certificates of label approval (COLAs) for
distilled spirits imported in containers.
(a) What COLA authorizes. An approved TTB Form 5100.31 authorizes
the use of the labels covered by the COLA on containers of distilled
spirits, as long as the container bears labels identical to the labels
appearing on the face of the COLA, or labels with changes authorized by
the form or otherwise authorized by TTB.
(b) What a COLA does not do. Among other things, the issuance of a
COLA does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from its responsibility to
ensure that all ingredients used in the production of the distilled
spirit comply with applicable requirements of the Food and Drug
Administration with regard to ingredient safety; or
(3) Relieve the certificate holder from liability for violations of
the FAA Act, the Alcoholic Beverage Labeling Act, the Internal Revenue
Code, or related regulations and rulings.
(i) The issuance of a COLA does not mean that TTB has verified the
accuracy of any representations or claims made on the label with
respect to the product in the container. It is the responsibility of
the applicant to ensure that all information on the application is true
and correct and that all labeling representations and claims are
truthful, accurate, and not misleading with respect to the product in
the container.
(ii) Distilled spirits may be mislabeled even when the label is
covered by a COLA. For example, if the label on the container contains
representations that are false or misleading when applied to the
product in the container the distilled spirits are not labeled in
accordance with the regulations in this part, even if it is covered by
a COLA.
(c) When to obtain a COLA. The COLA must be obtained prior to the
removal of distilled spirits in containers from customs custody for
consumption.
(d) Application for a COLA. The person responsible for the
importation of distilled spirits must obtain approval of the labels by
submitting an application to TTB on TTB Form 5100.31. A person may
apply for a COLA either electronically, by accessing TTB's online
system, COLAs Online, at https://www.ttb.gov, or by submitting the
paper form. For procedures regarding the issuance of COLAs, see part 13
of this chapter.
Administrative Rules
Sec. 5.27 Presenting certificates of label approval (COLAs) to
Government officials.
A certificate holder must present the original or a paper or
electronic copy of the appropriate COLA upon the request of any duly
authorized representative of the United States Government.
Sec. 5.28 Formulas, samples, and documentation.
(a) In addition to any formula specifically required under subpart
J, TTB may require formulas under certain circumstances in connection
with the label approval process. Prior to or in conjunction with the
review of an application for a certificate of label approval (COLA) on
TTB Form 5100.31, the appropriate TTB officer may require a bottler or
importer to submit a formula, the results of laboratory testing of the
distilled spirits, or a sample of any distilled spirits or ingredients
used in producing a distilled spirit. The appropriate TTB officer also
may request such information or samples after the issuance of such a
COLA, or in connection with any distilled spirit that is required to be
covered by a COLA. A formula may be filed electronically by using
Formulas Online, or it may be submitted on paper on Form 5100.51. See
Sec. 5.11 for more information on forms and Formulas Online.
(b) Upon request of the appropriate TTB officer, a bottler or
importer must submit a full and accurate statement of the contents of
any container to which labels are to be or have been affixed, as well
as any other documentation on any issue pertaining to whether the
distilled spirits are labeled in accordance with this part.
Sec. 5.29 Personalized labels.
(a) General. Applicants for label approval may obtain permission
from TTB to make certain changes in order to personalize labels without
having to resubmit labels for TTB approval. Personalized labels may
contain a personal message, picture, or other artwork that is specific
to the consumer who is purchasing the product. For example, a distiller
may offer individual or corporate customers labels that
[[Page 60649]]
commemorate an event such as a wedding or grand opening.
(b) Application. Any person who intends to offer personalized
labels must submit a template for the personalized label with the
application for label approval, and must note on the application a
description of the specific personalized information that may change.
(c) Approval of personalized label. If the application complies
with the regulations, TTB will issue a certificate of label approval
(COLA) with a qualification allowing the personalization of labels. The
qualification will allow the certificate holder to add or change items
on the personalized label such as salutations, names, graphics,
artwork, congratulatory dates and names, or event dates without
applying for a new COLA. All of these items on personalized labels must
comply with the regulations of this part.
(d) Changes not allowed to personalized labels. Approval of an
application to personalize labels does not authorize the addition of
any information that discusses either the alcohol beverage or
characteristics of the alcohol beverage or that is inconsistent with or
in violation of the provisions of this part or any other applicable
provision of law or regulations.
Sec. 5.30 Certificates of age and origin for imported spirits.
(a) Scotch, Irish, and Canadian whiskies. (1) Scotch, Irish, and
Canadian whiskies, imported in containers, are not eligible for release
from customs custody for consumption, and no person may remove such
whiskies from customs custody for consumption, unless that person has
obtained and is in possession of an invoice accompanied by a
certificate of origin issued by an official duly authorized by the
appropriate foreign government, certifying:
(i) That the particular distilled spirits are Scotch, Irish, or
Canadian whisky, as the case may be;
(ii) That the distilled spirits have been manufactured in
compliance with the laws of the respective foreign governments
regulating the manufacture of whisky for home consumption; and
(iii) That the product conforms to the requirements of the Immature
Spirits Act of such foreign governments for spirits intended for home
consumption.
(2) In addition, an official duly authorized by the appropriate
foreign government must certify to the age of the youngest distilled
spirits in the container. The age certified shall be the period during
which, after distillation and before bottling, the distilled spirits
have been stored in oak containers.
(b) Brandy, including Cognac. Brandy (other than fruit brandies of
a type not customarily stored in oak containers) or Cognac, imported in
containers, is not eligible for release from customs custody for
consumption, and no person may remove such brandy or Cognac from
customs custody for consumption, unless the person so removing the
brandy or Cognac possesses a certificate issued by an official duly
authorized by the appropriate foreign country certifying that the age
of the youngest brandy or Cognac in the container is not less than two
years, or if age is stated on the label that none of the distilled
spirits are of an age less than that stated. The age certified shall be
the period during which, after distillation and before bottling, the
distilled spirits have been stored in oak containers. If the label of
any fruit brandy, not stored in oak containers, bears any statement of
storage in another type of container, the brandy is not eligible for
release from customs custody for consumption, and no person may remove
such brandy from customs custody for consumption, unless the person so
removing the brandy possesses a certificate issued by an official duly
authorized by the appropriate foreign government certifying to such
storage. Cognac, imported in containers, is not eligible for release
from customs custody for consumption, and no person may remove such
Cognac from customs custody for consumption, unless the person so
removing the Cognac possesses a certificate issued by an official duly
authorized by the French Government, certifying that the product is
grape brandy distilled in the Cognac region of France and entitled to
be designated as ``Cognac'' by the laws and regulations of the French
Government.
(c) Rum. Rum imported in containers that contain any statement of
age is not eligible to be released from customs custody for
consumption, and no person may remove such rum from customs custody for
consumption, unless the person so removing the rum possesses a
certificate issued by an official duly authorized by the appropriate
foreign country, certifying to the age of the youngest rum in the
container. The age certified shall be the period during which, after
distillation and before bottling, the distilled spirits have been
stored in oak containers.
(d) Tequila. (1) Tequila imported in containers is not eligible for
release from customs custody for consumption, and no person may remove
such Tequila from customs custody for consumption, unless the person
removing such Tequila possesses a certificate issued by an official
duly authorized by the Mexican Government stating that the product is
entitled to be designated as Tequila under the applicable laws and
regulations of the Mexican Government.
(2) If the label of any Tequila imported in containers contains any
statement of age, the Tequila is not eligible for release from customs
custody for consumption, and no person may remove such Tequila from
customs custody for consumption, unless the person removing the Tequila
possesses a certificate issued by an official duly authorized by the
Mexican Government as to the age of the youngest Tequila in the
container. The age certified shall be the period during which the
Tequila has been stored in oak containers after distillation and before
bottling.
(e) Other whiskies. Whisky, as defined in Sec. 5.143(c)(2) through
(7) and (10) through (14), that is imported in containers may be
released from customs custody for econsumption only if the invoice is
accompanied by a certificate issued by a duly authorized official of
the appropriate foreign government certifying:
(1) In the case of whisky (regardless of whether it is mixed or
blended) that contains no neutral spirits:
(i) The type of the whisky as defined in Sec. 5.143;
(ii) The American proof at which the whisky was distilled;
(iii) That no neutral spirits (or other whisky in the case of
straight whisky) have been added or otherwise included in the whisky
(iv) The age of the whisky; and
(v) The type of oak barrel in which the whisky was aged and whether
the barrel was new or reused, charred or uncharred; and
(2) In the case of whisky containing neutral spirits:
(i) The type of the whisky as defined in Sec. 5.143;
(ii) The percentage of straight whisky used in the blend, if any;
(iii) The American proof at which any straight whisky in the blend
was distilled;
(iv) The percentage of whisky other than straight whisky in the
blend, if any;
(v) The percentage of neutral spirits in the blend and the name of
the commodity from which the neutral spirits were distilled;
(vi) The age of any straight whisky and the age of any other whisky
in the blend; and
(vii) The type of oak barrel in which the age of each whisky in the
blend was attained and whether the barrel was new or reused and charred
or uncharred.
[[Page 60650]]
(f) Miscellaneous. Distilled spirits (other than Scotch, Irish, and
Canadian whiskies, and Cognac) imported in containers are not eligible
for release from customs custody for consumption, and no person shall
remove such spirits from customs custody for consumption, unless that
person has obtained and is in possession of an invoice accompanied by a
certificate of origin issued by an official duly authorized by the
appropriate foreign government, if the issuance of such certificates
with respect to such distilled spirits is required by the foreign
government concerned, certifying as to the identity of the distilled
spirits and that the distilled spirits have been manufactured in
compliance with the laws of the respective foreign government
regulating the manufacture of such distilled spirits for home
consumption.
(g) Retention of certificates--distilled spirits imported in
containers. The importer of distilled spirits imported in containers
must retain for five years following the removal of the bottled
distilled spirits from customs custody copies of the certificates (and
accompanying invoices, if applicable) required by paragraphs (a)
through (f) of this section, and must provide them upon request of the
appropriate TTB officer or a customs officer.
(h) Distilled spirits imported in bulk for bottling in the United
States. Distilled spirits that would be required under paragraphs (a)
through (f) of this section to be covered by a certificate of age and/
or a certificate of origin and that are imported in bulk for bottling
in the United States may be removed from the premises where bottled
only if the bottler possesses a certificate of age and/or a certificate
of origin, issued by the appropriate entity as set forth in paragraphs
(a) through (f) of this section, applicable to the spirits that
provides the same information as a certificate required under
paragraphs (a) through (f) of this section, would provide for like
spirits imported in bottles. The bottler of distilled spirits imported
in bulk must retain for five years following the removal of such
spirits from the domestic plant where bottled copies of the
certificates required by paragraphs (a) through (f), and must provide
them upon request of the appropriate TTB officer.
(i) Retention of distilled spirits certificates--distilled spirits
in bulk. The bottler of distilled spirits imported in bulk must retain,
for five years following the removal of such distilled spirits from the
premises where bottled, copies of the certificates required by
paragraphs (a) through (f) of this section, and must provide them upon
request of the appropriate TTB officer.
Subpart C--Alteration of Labels, Relabeling, and Adding Information
to Containers
Sec. 5.41 Alteration of labels.
(a) Prohibition. It is unlawful for any person to alter, mutilate,
destroy, obliterate or remove any mark, brand, or label on distilled
spirits in containers held for sale in interstate or foreign commerce,
or held for sale after shipment in interstate or foreign commerce,
except as authorized by Sec. 5.42, Sec. 5.43, or Sec. 5.44, or as
otherwise authorized by Federal law.
(b) Authorized relabeling. For purposes of the relabeling
activities authorized by this subpart, the term ``relabel'' includes
the alteration, mutilation, destruction, obliteration, or removal of
any existing mark, brand, or label on the container, as well as the
addition of a new label (such as a sticker that adds information about
the product or information engraved on the container) to the container,
and the replacement of a label with a new label bearing identical
information.
(c) Obligation to comply with other requirements. Authorization to
relabel under this subpart in no way authorizes the placement of labels
on containers that do not accurately reflect the brand, bottler,
identity, or other characteristics of the product; nor does it relieve
the person conducting the relabeling operations from any obligation to
comply the regulations in this part and with State or local law, or to
obtain permission from the owner of the brand where otherwise required.
Sec. 5.42 Authorized relabeling activities by distillers and
importers.
(a) Relabeling at distilled spirits plant premises. Proprietors of
distilled spirits plant premises may relabel domestically bottled
distilled spirits prior to removal from, and after return to bond at,
the distilled spirits plant premises, with labels covered by a
certificate of label approval (COLA), without obtaining separate
permission from TTB for the relabeling activity.
(b) Relabeling after removal from distilled spirits plant premises.
Proprietors of distilled spirits plant premises may relabel
domestically bottled distilled spirits after removal from distilled
spirits plant premises with labels covered by a COLA, without obtaining
separate permission from TTB for the relabeling activity.
(c) Relabeling in customs custody. Under the supervision of customs
officers, imported distilled spirits in containers in customs custody
may be relabeled without obtaining separate permission from TTB for the
relabeling activity. Such containers must bear labels covered by a COLA
upon their removal from customs custody for consumption. See Sec.
5.24(b).
(d) Relabeling after removal from customs custody. Imported
distilled spirits in containers may be relabeled by the importer
thereof after removal from customs custody without obtaining separate
permission from TTB for the relabeling activity, as long as the labels
are covered by a COLA.
Sec. 5.43 Relabeling activities that require separate written
authorization from TTB.
Any persons holding distilled spirits for sale who need to relabel
the containers but are not eligible to obtain a COLA to cover the
labels that they wish to affix to the containers may apply for written
permission for the relabeling of distilled spirits containers. The
appropriate TTB officer may permit relabeling of distilled spirits in
containers if the facts show that the relabeling is for the purpose of
compliance with the requirements of this part or State law. The written
application must include copies of the original and proposed new
labels; the circumstances of the request, including the reason for
relabeling; the number of containers to be relabeled; the location
where the relabeling will take place; and the name and address of the
person who will be conducting the relabeling operations.
Sec. 5.44 Adding a label or other information to a container that
identifies the wholesaler, retailer, or consumer.
Any label or other information that identifies the wholesaler,
retailer, or consumer of the distilled spirits may be added to
containers (by the addition of stickers, engraving, stenciling, etc.)
without prior approval from TTB and without being covered by a
certificate of label approval or certificate of exemption from label
approval. Such information may be added before or after the containers
have been removed from distilled spirits plant premises or released
from customs custody. The information added:
(a) May not violate the provisions of subpart F, G, or H of this
part;
(b) May not contain any reference to the characteristics of the
product; and
(c) May not be added to the container in such a way that it
obscures any other labels on the container.
[[Page 60651]]
Subpart D--Label Standards
Sec. 5.51 Firmly affixed requirements.
Any label that is not an integral part of the container must be
affixed to the container in such a way that it cannot be removed
without thorough application of water or other solvents.
Sec. 5.52 Legibility and other requirements for mandatory information
on labels.
(a) Readily legible. Mandatory information on labels must be
readily legible to potential consumers under ordinary conditions.
(b) Separate and apart. Mandatory information on labels, except
brand names, must be separate and apart from any additional
information. This does not preclude the addition of brief optional
phrases of additional information as part of the class or type
designation (such as, ``premium vodka'' or ``delicious Tequila''), the
name and address statement (such as, ``Proudly distilled and bottled by
ABC Distilling Company, Atlanta, GA, for over 30 years'') or other
information required by Sec. 5.63(a) and (b), as long as the
additional information does not detract from the prominence of the
mandatory information. The statements required by Sec. 5.63(c) may not
include additional information.
(c) Contrasting background. Mandatory information must appear in a
color that contrasts with the background on which it appears, except
that if the net contents are blown into a glass container, they need
not be contrasting. The color of the container and of the spirits must
be taken into account if the label is transparent or if mandatory label
information is etched, engraved, sandblasted, or otherwise carved into
the surface of the container or is branded, stenciled, painted,
printed, or otherwise directly applied on to the surface of the
container. Examples of acceptable contrasts are:
(1) Black lettering appearing on a white or cream background; or
(2) White or cream lettering appearing on a black background.
(d) Capitalization. Except for the aspartame statement when
required by Sec. 5.63(c)(4), which must appear in all capital letters,
mandatory information prescribed by this part may appear in all capital
letters, in all lower case letters, or in mixed-case using both capital
and lower-case letters.
Sec. 5.53 Minimum type size of mandatory information.
All capital and lowercase letters in statements of mandatory
information on labels must meet the following type size requirements.
(a) Containers of more than 200 milliliters. All mandatory
information must be in script, type, or printing that is at least two
millimeters in height.
(b) Containers of 200 milliliters or less. All mandatory
information must be in script, type, or printing that is at least one
millimeter in height.
Sec. 5.54 Visibility of mandatory information.
Mandatory information on a label must be readily visible and may
not be covered or obscured in whole or in part. See Sec. 5.62 for
rules regarding packaging of containers (including cartons, coverings,
and cases). See part 14 of this chapter for regulations pertaining to
advertising materials.
Sec. 5.55 Language requirements.
(a) General. Mandatory information must appear in the English
language, with the exception of the brand name and except as provided
in paragraphs (c) and (d) of this section.
(b) Foreign languages. Additional statements in a foreign language,
including translations of mandatory information that appears elsewhere
in English on the label, are allowed on labels and containers as long
as they do not in any way conflict with, or contradict, the
requirements of this part.
(c) Distilled spirits for consumption in the Commonwealth of Puerto
Rico. Mandatory information may be stated solely in the Spanish
language on labels of distilled spirits bottled for consumption within
the Commonwealth of Puerto Rico.
(d) Exception for country of origin statements. The country of
origin statement for distilled spirits may appear in a language other
than English when allowed by U.S. Customs and Border Protection
regulations.
Sec. 5.56 Additional information.
Information (other than mandatory information) that is truthful,
accurate, and specific, and that does not violate subpart F, G, or H of
this part, may appear on labels. Such additional information may not
conflict with, modify, qualify or restrict mandatory information in any
manner.
Subpart E--Mandatory Label Information
Sec. 5.61 What constitutes a label for purposes of mandatory
information.
(a) Label. Certain information, as outlined in Sec. 5 63, must
appear on a label. When used in this part for purposes of determining
where mandatory information must appear, the term ``label'' includes:
(1) Material affixed to the container, whether made of paper,
plastic film, or other matter;
(2) For purposes of the net content statement only, information
blown, embossed, or molded into the container as part of the process of
manufacturing the container;
(3) Information etched, engraved, sandblasted, or otherwise carved
into the surface of the container; and
(4) Information branded, stenciled, painted, printed, or otherwise
directly applied on to the surface of the container.
(b) Information appearing elsewhere on the container. Information
appearing on the following parts of the container is subject to all of
the restrictions and prohibitions set forth in subparts F, G and H of
this part, but will not satisfy any requirements for mandatory
information that must appear on labels in this part:
(1) Material affixed to, or information appearing on, the bottom
surface of the container;
(2) Caps, corks or other closures unless authorized to bear
mandatory information by the appropriate TTB officer; and
(3) Foil or heat shrink bottle capsules.
(c) Materials not firmly affixed to the container. Any materials
that accompany the container to the consumer but are not firmly affixed
to the container, including booklets, leaflets, and hang tags, are not
``labels'' for purposes of this part. Such materials are instead
subject to the advertising regulations in part 14 of this chapter.
Sec. 5.62 Packaging (cartons, coverings, and cases).
(a) General. The term ``packaging'' includes any covering, carton,
case, carrier, or other packaging of distilled spirits containers used
for sale at retail, but does not include shipping cartons or cases that
are not intended to accompany the container to the consumer.
(b) Prohibition. Any packaging of distilled spirits containers may
not contain any statement, design, device, or graphic, pictorial, or
emblematic representation that violates the provisions of subpart F, G,
or H of this part.
(c) Requirements for closed packaging. If containers are enclosed
in closed packaging, including sealed opaque coverings, cartons, cases,
carriers, or other packaging used for sale at retail, such packaging
must bear all mandatory label information required on the label under
Sec. 5.63.
(1) Packaging is considered closed if the consumer must open, rip,
untie,
[[Page 60652]]
unzip, or otherwise manipulate the package to remove the container in
order to view any of the mandatory information.
(2) Packaging is not considered closed if a consumer could view all
of the mandatory information on the container by merely lifting the
container up, or if the packaging is transparent or designed in a way
that all of the mandatory information can be easily read by the
consumer without having to open, rip, untie, unzip, or otherwise
manipulate the package.
(d) Packaging that is not closed. The following requirements apply
to packaging that is not closed.
(1) The packaging may display any information that is not in
conflict with the label on the container that is inside the packaging.
(2) If the packaging displays a brand name, it must display the
brand name in its entirety. For example, if a brand name is required to
be modified with additional information on the container, the packaging
must also display the same modifying language.
(3) If the packaging displays a class or type designation, it must
be identical to the class or type designation appearing on the
container. For example, if the packaging displays a class or type
designation for a brandy for which a truthful and adequate statement of
composition is required on the container, the packaging must also
include the statement of composition as well.
(e) Labeling of containers within the packaging. The container
within the packaging is subject to all labeling requirements of this
part, including mandatory labeling information requirements, regardless
of whether the packaging bears such information.
Sec. 5.63 Mandatory label information.
(a) Mandatory information required to appear within the same field
of vision. Distilled spirits containers must bear a label or labels (as
defined in Sec. 5.61) containing the following information within the
same field of vision (which means a single side of a container (for a
cylindrical container, a side is 40 percent of the circumference) where
all of the pieces of information can be viewed simultaneously without
the need to turn the container):
(1) Brand name, in accordance with Sec. 5.64;
(2) Class, type, or other designation, in accordance with subpart I
of this part; and
(3) Alcohol content, in accordance with Sec. 5.65.
(b) Other mandatory information. Distilled spirits containers must
bear a label or labels (as defined in Sec. 5.61) anywhere on the
container bearing the following information:
(1) Name and address of the bottler or distiller, in accordance
with Sec. 5.66, or the importer, in accordance with Sec. 5.67 or
Sec. 5.68, as applicable; and
(2) Net contents (which may be blown, embossed, or molded into the
container as part of the process of manufacturing the container), in
accordance with Sec. 5.68.
(c) Disclosure of certain ingredients, processes and other
information. The following ingredients, processes, and other
information must be disclosed on a label, without the inclusion of any
additional information as part of the statement, as follows:
(1) Neutral spirits. The percentage of neutral spirits and the name
of the commodity from which the neutral spirits were distilled, or in
the case of continuously distilled neutral spirits or gin, the name of
the commodity only, in accordance with Sec. 5.70;
(2) Coloring or treatment with wood. Coloring or treatment with
wood, in accordance with Sec. Sec. 5.71 and 5.72;
(3) Age. A statement of age or age and percentage of type, when
required or used, in accordance with Sec. 5.73;
(4) State of distillation. State of distillation of any type of
whisky defined in Sec. 5.143(c)(2) through (c)(7), which is distilled
in the United States, in accordance with Sec. 5.66(f);
(5) FD&C Yellow No. 5. If a distilled spirit contains the coloring
material FD&C Yellow No. 5, the label must include a statement to that
effect, such as ``FD&C Yellow No. 5'' or ``Contains FD&C Yellow No.
5'';
(6) Cochineal extract or carmine. If a distilled spirit contains
the color additive cochineal extract or the color additive carmine, the
label must include a statement to that effect, using the respective
common or usual name (such as ``contains cochineal extract'' or
``contains carmine''). This requirement applies to labels when either
of the coloring materials was used in a distilled spirit that is
removed from bottling premises or from customs custody on or after
April 16, 2013;
(7) Sulfites. If a distilled spirit contains 10 or more parts per
million of sulfur dioxide or other sulfiting agent measured as total
sulfur dioxide, the label must include a statement to that effect.
Examples of acceptable statements are ``Contains sulfites'' or
``Contains (a) sulfiting agent(s)'' or a statement identifying the
specific sulfiting agent. The alternative terms ``sulphites'' or
``sulphiting'' may be used; and
(8) Aspartame. If the distilled spirit contains aspartame, the
label must include the following statement, in capital letters,
separate and apart from all other information: ``PHENYLKETONURICS:
CONTAINS PHENYLALANINE.''
(d) Distinctive liquor bottles. See Sec. 5.205(b)(2) for exemption
from placement requirements for certain mandatory information for
distinctive liquor bottles.
Sec. 5.64 Brand name.
(a) Requirement. The distilled spirits label must include a brand
name. If the distilled spirits are not sold under a brand name, then
the name of the bottler, distiller or importer, as applicable,
appearing in the name and address statement is treated as the brand
name.
(b) Misleading brand names. Labels may not include any misleading
brand names. A brand name is misleading if it creates (by itself or in
association with other printed or graphic matter) any erroneous
impression or inference as to the age, origin, identity, or other
characteristics of the distilled spirits. A brand name that would
otherwise be misleading may be qualified with the word ``brand'' or
with some other qualification, if the appropriate TTB officer
determines that the qualification dispels any misleading impression
that might otherwise be created.
Sec. 5.65 Alcohol content.
(a) General. The alcohol content for distilled spirits must be
stated on the label as a percentage of alcohol by volume. Products that
contain a significant amount of material, such as solid fruit, that may
absorb spirits after bottling must state the alcohol content at the
time of bottling as follows: ``Bottled at __ percent alcohol by
volume.''
(b) How the alcohol content must be expressed. The following rules
apply to statements of alcohol content.
(1) A statement of alcohol content must be expressed as a
percentage of alcohol by volume and not by a range, or by maximums or
minimums.
(i) In addition, the alcohol content in degrees of proof may be
stated on a label as long as it appears immediately adjacent to the
mandatory statement of alcohol content as a percentage of alcohol by
volume. Additional statements of proof may appear on the label without
being immediately adjacent to the mandatory alcohol by volume
statement.
(ii) Other truthful, accurate, and specific factual representations
of alcohol content, such as alcohol by
[[Page 60653]]
weight, may be made, as long as they appear together with, and as part
of, the statement of alcohol content as a percentage of alcohol by
volume.
(2)(i) The alcohol content statement must be expressed in one of
the following formats:
(A) ``Alcohol __ percent by volume'';
(B) ``__ percent alcohol by volume''; or
(C) ``Alcohol by volume __ percent.''
(ii) Any of the words or symbols may be enclosed in parentheses and
authorized abbreviations may be used with or without a period. The
alcohol content statement does not have to appear with quotation marks.
(3) The statements listed in paragraph (b)(2)(i) of this section
must appear as shown, except that the following abbreviations may be
used: Alcohol may be abbreviated as ``alc''; percent may be represented
by the percent symbol ``%''; alcohol and volume may be separated by a
slash ``/'' in lieu of the word ``by''; and volume may be abbreviated
as ``vol''.
(4) Examples. The following are examples of alcohol content
statements that comply with the requirements of this part:
(i) ``40% alc/vol'';
(ii) ``Alc. 40 percent by vol.'';
(iii) ``Alc 40% by vol''; and
(iv) ``40% Alcohol by Volume.''
(c) Tolerances. A tolerance of plus or minus 0.3 percentage points
is allowed for actual alcohol content that is above or below the
labeled alcohol content.
Sec. 5.66 Name and address for domestically bottled distilled spirits
that were wholly made in the United States.
(a) General. Domestically bottled distilled spirits that were
wholly made in the United States and contain no imported distilled
spirits must be labeled in accordance with this section. (See
Sec. Sec. 5.67 and 5.68 for name and address requirements applicable
to distilled spirits that are not wholly made in the United States.)
For purposes of this section, a ``processor'' who solely bottles the
labeled distilled spirits will be considered the ``bottler.''
(b) Form of statement. The bottler, distiller, or processor of the
distilled spirits must be identified by a phrase describing the
function performed by that person. If that person performs more than
one function, the label may (but is not required to) so indicate.
(1) If the name of the bottler appears on the label, it must be
preceded by a phrase such as ``bottled by,'' ``canned by,'' ``packed
by,'' or ``filled by,'' followed by the name and address of the
bottler.
(2) If the name of the processor appears on the label, it must be
preceded by a phrase such as ``blended by,'' ``made by,'' ``prepared
by,'' ``produced by,'' or ``manufactured by,'' as appropriate, followed
by the name and address of the processor. When applied to distilled
spirits, the term ``produced by'' indicates a processing operation
(formerly known as rectification) that involves a change in the class
or type of the product through the addition of flavors or some other
processing activity.
(3) If the name of the distiller appears on the label, it must be
preceded by a phrase such as ``distilled by,'' followed by the name and
address of the distiller. If the distilled spirits were bottled for the
distiller thereof, the name and address of the distiller may be
preceded by a phrase such as ``distilled by and bottled for,'' or
``bottled for.''
(c) Listing of more than one function. If different functions are
performed by more than one person, statements on the label may not
create the misleading impression that the different functions were
performed by the same person.
(d) Form of address--(1) General. The address consists of the city
and State where the operation occurred, or the city and State of the
principal place of business of the person performing the operation.
This information must be consistent with the information on the basic
permit. Addresses may, but are not required to, include additional
information such as street names, counties, zip codes, phone numbers,
and website addresses. The postal abbreviation of the State name may be
used; for example, California may be abbreviated as CA.
(2) More than one address. If the bottler, distiller, or processor
listed on the name and address statement is the actual operator of more
than one distilled spirits plant engaged in bottling, distilling, or
processing operations, as applicable, the label may state, immediately
following the name of the permittee, the addresses of those other
plants, in addition to the address of the plant at which the distilled
spirits were bottled. In this situation, the address where the
operation occurred must be indicated on the label or on the container
by printing, coding, or other markings.
(3) Principal place of business. The label may provide the address
of the bottler's, distiller's, or processor's principal place of
business, in lieu of the place where the bottling, distilling, or other
operation occurred, provided that the address where the operation
occurred is indicated on the label or on the container by printing,
coding, or other markings.
(4) Distilled spirits bottled for another person. (i) If distilled
spirits are bottled for another person, other than the actual distiller
thereof, the label may state, in addition to (but not in place of) the
name and address of the bottler, the name and address of such other
person, immediately preceded by the words ``bottled for'' or another
similar appropriate phrase. Such statements must clearly indicate the
relationship between the two persons (for example, contract bottling).
(ii) If the same brand of distilled spirits is bottled by two
distillers that are not under the same ownership, the label for each
distiller may set forth both locations where bottling takes place, as
long as the label uses the actual location (and not the principal place
of business) and as long as the nature of the arrangement is clearly
set forth.
(5) No additional places or addresses may be stated for the same
person unless:
(i) That person is actively engaged in the conduct of an additional
bona fide and actual alcohol beverage business at such additional place
or address, and
(ii) The label also contains in direct conjunction therewith,
appropriate descriptive material indicating the function occurring at
such additional place or address in connection with the particular
product (such as ``distilled by.'')
(e) Special rule for straight whiskies. If ``straight whiskies''
(see Sec. 5.143) of the same type are distilled in the same State by
two or more different distillers and are combined (either at the time
of bottling or at a warehouseman's bonded premises for further storage)
and subsequently bottled and labeled as ``straight whisky,'' that
``straight whisky'' must bear a label that contains name and address
information of the bottler. If that combined ``straight whisky'' is
bottled by or for the distillers, in lieu of the name and address of
the bottler, the label may contain the words ``distilled by,'' followed
immediately by the names (or trade names) and addresses of the
different distillers who distilled a portion of the ``straight whisky''
and the percentage of ``straight whisky'' distilled by each distiller,
with a tolerance of plus or minus 2 percent. If ``straight whisky''
consists of a mixture of ``straight whiskies'' of the same type from
two or more different distilleries of the same proprietor located
within the same State, and if that ``straight whisky'' is bottled by or
for that proprietor, in lieu of the name and address of the bottler,
the ``straight whisky'' may bear
[[Page 60654]]
a label containing the words ``distilled by'' followed by the name (or
trade name) of the proprietor and the addresses of the different
distilleries that distilled a portion of the ``straight whisky.''
(f) State of distillation for whisky. (1) The State of
distillation, which is the State in which original distillation takes
place, must appear on the label of any type of whisky defined in Sec.
5.143(c)(2) through (7), which is distilled in the United States. The
State of distillation may appear on any label and must be shown in at
least one of the following ways:
(i) By including a ``distilled by'' (or ``distilled and bottled
by'' or any other phrase including the word ``distilled'') statement as
part of the mandatory name and address statement, followed by a single
location.
(ii) By including the name of the State in which original
distillation occurred immediately adjacent to the class or type
designation (such as ``Kentucky bourbon whisky''), as long as the
product was both distilled and aged in that State in conformance with
the requirements of Sec. 5.143(b).
(iii) By including a separate statement, such as ``Distilled in
[name of State].''
(2) The appropriate TTB officer may require that the State of
distillation or other information appear on a label of any whisky
subject to the requirements of paragraph (f)(1) of this section (and
may prescribe placement requirements for such information), even if
that State appears in the name and address statement, if such
additional information is necessary to negate any misleading or
deceptive impression that might otherwise be created as regards the
actual State of distillation.
(3) In the case of ``light whisky,'' the State name ``Kentucky'' or
``Tennessee'' may not appear on any label, except as a part of a name
and address as specified in paragraph (a)(1), (2), or (4) of this
section.
(g) Trade or operating names. (1) The name of the person appearing
on the label may be the trade name or the operating name, as long as it
is identical to a trade or operating name appearing on the basic
permit. In the case of a distillation statement for spirits bottled in
bond, the name or trade name under which the spirits were distilled
must be shown.
(2) A trade name may be used only if the use of that name would not
create a misleading impression as to the age, origin, or identity of
the product. For example, if a distiller or bottler of the spirits
authorizes the use of its trade name by another distiller or bottler
that is not under the same ownership, that trade name may not be used
on a label in a way that tends to mislead consumers as to the identity
or location of the distiller or bottler.
Sec. 5.67 Name and address for domestically bottled distilled spirits
that were bottled after importation.
(a) General. This section applies to distilled spirits that were
bottled after importation. See Sec. 5.68 for name and address
requirements applicable to imported distilled spirits that were bottled
after importation. See 19 CFR parts 102 and 134 for U.S. Customs and
Border Protection country of origin marking requirements.
(b) Distilled spirits bottled after importation in the United
States. Distilled spirits bottled, without further blending, making,
preparing, producing, manufacturing, or distilling activities after
importation, must bear one of the following name and address
statements:
(1) The name and address of the bottler, preceded by the words
``bottled by,'' ``canned by,'' ``packed by,'' or ``filled by'';
(2) If the distilled spirits were bottled for the person
responsible for the importation, the words ``imported by and bottled
(canned, packed, or filled) in the United States for'' (or a similar
appropriate phrase) followed by the name and address of the principal
place of business in the United States of the person responsible for
the importation;
(3) If the distilled spirits were bottled by the person responsible
for the importation, the words ``imported by and bottled (canned,
packed, or filled) in the United States by'' (or a similar appropriate
phrase) followed by the name and address of the principal place of
business in the United States of the person responsible for the
importation.
(c) Distilled spirits that were subject to blending or other
production activities after importation. Distilled spirits that, after
importation in bulk, were blended, made, prepared, produced,
manufactured or further distilled, may not bear an ``imported by''
statement on the label, but must instead be labeled in accordance with
the rules set forth in Sec. 5.66 for mandatory and optional labeling
statements.
(d) Optional statements. In addition to the statements required by
paragraph (a)(1) of this section, the label may also state the name and
address of the principal place of business of the foreign producer.
(e) Form of address. (1) The address consists of the city and State
where the operation occurred, or the city and State of the principal
place of business of the person performing the operation. This
information must be consistent with the information on the basic
permit. Addresses may, but are not required to, include additional
information such as street names, counties, zip codes, phone numbers,
and website addresses.
(2) If the bottler or processor listed on the name and address
statement is the actual operator of more than one distilled spirits
plant engaged in bottling, distilling, or processing operations, as
applicable the label may state, immediately following the name of the
bottler, the addresses of those other plants, in addition to the
address of the plant at which the distilled spirits were bottled. In
this situation, the address where the operation occurred must be
indicated on the label or on the container by printing, coding, or
other markings.
(3) Principal place of business. The label may provide the address
of the bottler's or processor's principal place of business, in lieu of
the place where the bottling, distilling, or other operation occurred,
provided that the address where the operation occurred is indicated on
the label or on the container by printing, coding, or other markings.
(f) Trade or operating names. A trade name may be used if the trade
name is listed on the basic permit or other qualifying documentation
and if its use on the label would not create any misleading impression
as to the age, origin, or identity of the product.
Sec. 5.68 Name and address for distilled spirits that were imported
in a container.
(a) General. This section applies to distilled spirits that were
imported in a container, as defined in Sec. 5.1. See Sec. 5.67 for
name and address requirements applicable to distilled spirits that were
domestically bottled after importation. See 19 CFR parts 102 and 134
for U.S. Customs and Border Protection country of origin marking
requirements.
(b) Mandatory labeling statement. Distilled spirits imported in
containers, as defined in Sec. 5.1, must bear a label stating the
words ``imported by'' or a similar appropriate phrase, followed by the
name and address of the importer.
(1) For purposes of this section, the importer is the holder of the
importer's basic permit who either makes the original Customs entry or
is the person for whom such entry is made, or the holder of the
importer's basic permit who is the agent, distributor, or franchise
holder for the particular brand of imported alcohol beverages and who
places the order abroad.
(2) The address of the importer must be stated as the city and
State of the principal place of business and must be
[[Page 60655]]
consistent with the address reflected on the importer's basic permit.
Addresses may, but are not required to, include additional information
such as street names, counties, zip codes, phone numbers, and website
addresses. The postal abbreviation of the State name may be used; for
example, California may be abbreviated as CA.
(c) Optional statements. In addition to the statements required by
paragraph (b)(1) of this section, the label may also state the name and
address of the principal place of business of the foreign producer.
(d) Form of address. The ``place'' stated must be the city and
State, shown on the basic permit or other qualifying document, of the
premises at which the operations took place; and the place for each
operation that is designated on the label must be shown.
(e) Trade or operating names. A trade name may be used if the trade
name is listed on the basic permit or other qualifying documentation
and if its use on the label would not create any misleading impression
as to the age, origin, or identity of the product.
Sec. 5.69 Country of origin.
(a) Pursuant to U.S. Customs and Border Protection (CBP)
regulations at 19 CFR parts 102 and 134, a country of origin statement
must appear on the container of distilled spirits imported in
containers or bottled in the United States after importation. Labeling
statements with regard to the country of origin must be consistent with
CBP regulations. The determination of the country (or countries) of
origin, for imported wines, as well as for blends of imported distilled
spirits with domestically produced distilled spirits, must comply with
CBP regulations.
(b) It is the responsibility of the importer or bottler, as
appropriate, to ensure compliance with the country of origin marking
requirement, both when distilled spirits are imported in containers and
when imported distilled spirits are subject to bottling, blending, or
production activities in the United States. Industry members may seek a
ruling from CBP for a determination of the country of origin for their
product.
Sec. 5.70 Net contents.
The requirements of this section apply to the net contents
statement required by Sec. 5.63.
(a) General. The volume of spirits in the container must appear on
a label as a net contents statement. The net contents for the external
container of an aggregate package must be stated as specified in Sec.
5.204. The word ``liter'' may be alternatively spelled ``litre'' or may
be abbreviated as ``L''. The word ``milliliters'' may be abbreviated as
``ml.,'' ``mL.,'' or ``ML.'' Net contents in U.S. equivalents and in
metric equivalents such as centiliters may appear on a label and, if
used, must appear in the same field of vision as the metric net
contents statement.
(b) Tolerances. (1) The following tolerances are permissible for
purposes of applying paragraph (a) of this section:
(i) Errors in measuring. Discrepancies due to errors in measuring
that occur in filling conducted in compliance with good commercial
practice;
(ii) Differences in capacity. Discrepancies due exclusively to
differences in the capacity of containers, resulting solely from
unavoidable difficulties in manufacturing the containers so as to be of
uniform capacity, provided that the discrepancy does not result from a
container design that prevents the manufacture of containers of an
approximately uniform capacity; and
(iii) Differences in atmospheric conditions. Discrepancies in
measure due to differences in atmospheric conditions in various places,
including discrepancies resulting from the ordinary and customary
exposure of alcohol beverage products in containers to evaporation,
provided that the discrepancy is determined to be reasonable on a case
by case basis.
(2) Shortages and overages. A contents shortage in certain of the
containers in a shipment may not be counted against a contents overage
in other containers in the same shipment for purposes of determining
compliance with the requirements of this section.
Sec. 5.71 Neutral spirits and name of commodity.
(a) In the case of distilled spirits (other than cordials,
liqueurs, flavored neutral spirits, including flavored vodka, and
distilled spirits specialty products) manufactured by blending or other
processing, if neutral spirits were used in the production of the
spirits, the percentage of neutral spirits so used and the name of the
commodity from which the neutral spirits were distilled must appear on
a label. The statement of percentage and the name of the commodity must
be in substantially the following form: ``__% neutral spirits distilled
from ____ (insert grain, cane products, fruit, or other commodity as
appropriate)''; or ``__% neutral spirits (vodka) distilled from ____
(insert grain, cane products, fruit, or other commodity as
appropriate)''; or ``__% (grain) (cane products), (fruit) neutral
spirits'', or ``__% grain spirits.''
(b) In the case of gin manufactured by a process of continuous
distillation or in the case of neutral spirits, a label on the
container must state the name of the commodity from which the gin or
neutral spirits were distilled. The statement of the name of the
commodity must appear in substantially the following form: ``Distilled
from grain'' or ``Distilled from cane products''.
Sec. 5.72 Coloring materials.
The words ``artificially colored'' must appear on a label of any
distilled spirits product containing synthetic or natural materials
that primarily contribute color, or when information on a label conveys
the impression that a color was derived from a source other than the
actual source of the color, except that:
(a) If no coloring material other than a color exempt from
certification under FDA regulations has been added, a truthful
statement of the source of the color may appear in lieu of the words
``artificially colored,'' for example, ``Contains Beta Carotene'' or
``Colored with beet extract.'' See 21 CFR parts 73 and 74 for the list
of such colors under Food and Drug Administration (FDA) regulations;
(b) If no coloring material has been added other than one certified
as suitable for use in foods by the FDA, the words ``(to be filled in
with name of) certified color added'' or ``Contains Certified Color''
may appear in lieu of the words ``artificially colored''; and
(c) If no coloring material other than caramel has been added, the
words ``colored with caramel,'' ``contains caramel color,'' or another
statement specifying the use of caramel color, may appear in lieu of
the words ``artificially colored.'' However, no statement of any type
is required for the use of caramel color in brandy, rum, or Tequila, or
in any type of whisky other than straight whisky if used at not more
than 2\1/2\ percent by volume of the finished product.
(d) As provided in Sec. 5.61, the use of FD&C Yellow No. 5,
carmine, or cochineal extract must be specifically stated on the label
even if the label also contains a phrase such as ``contains certified
color'' or ``artificially colored.''
Sec. 5.73 Treatment of whisky or brandy with wood.
The words ``colored and flavored with wood ___'' (inserting
``chips,'' ``slabs,'' etc., as appropriate) must appear immediately
adjacent to, and in the same size of type as, the class and type
designation under subpart I of this part for whisky and brandy treated,
in whole or in part, with wood through percolation or otherwise during
[[Page 60656]]
distillation or storage, other than through contact with an oak barrel.
However, the statement specified in this section is not required in the
case of brandy treated with an infusion of oak chips in accordance with
Sec. 5.155(b)(3)(B).
Sec. 5.74 Statements of age, storage, and percentage.
(a) General. (1) As defined in Sec. 5.1, age is the length of time
during which, after distillation and before bottling, the distilled
spirits have been stored in oak barrels in such a manner that chemical
changes take place as a result of direct contact with the wood. For
bourbon whisky, rye whisky, wheat whisky, malt whisky, or rye malt
whisky, and straight whiskies other than straight corn whisky, aging
must occur in charred new oak barrels.
(2) If an age statement is used, it is permissible to understate
the age of a product, but overstatements of age are prohibited.
However, the age statement may not conflict with the standard of
identity, if aging is required as part of the standard of identity. For
example, the standard of identity for straight rye whisky requires that
the whisky be aged for a minimum of 2 years, so the age statement
``Aged 1 year,'' would be prohibited, even if the spirits were actually
aged for more than 2 years, because it is inconsistent with the
standard of identity.
(3) If spirits are aged in more than one oak barrel (for example,
if a whisky is aged 2 years in a new charred oak barrel and then placed
into a second new charred oak barrel for an additional 6 months,) only
the time spent in the first barrel is counted towards the ``age.''
(4) The age may be stated in years, months, or days.
(b) Age statements and percentage of type statements for whisky.
For all domestic or foreign whiskies that are aged less than four
years, including blends containing a whisky that is aged less than four
years, an age statement and percentage of types of whisky statement is
required to appear on a label, unless the whisky is labeled as
``bottled in bond'' in conformity with Sec. 5.88. For all other
whiskies, the statements are optional, but if used, they must conform
to the formatting requirements listed below. Moreover, if the bottler
chooses to include a statement of age or percentage on the label of a
product that is four years old or more and that contains neutral
spirits, the statement must appear immediately adjacent to the neutral
spirits statement required by Sec. 5.70. The following are the
allowable formats for the age and percentage statements for whisky:
(1) In the case of whisky, whether or not mixed or blended but
containing no neutral spirits, the age of the youngest whisky in the
product. The age statement must appear substantially as follows: ``__
years old'';
(2) In the case of whisky containing neutral spirits, whether or
not mixed or blended, if any straight whisky or other whisky in the
product is less than 4 years old, the percentage by volume of each such
whisky and the age of each such whisky (the age of the youngest of the
straight whiskies or other whiskies if the product contains two or more
of either). The age and percentage statement for a straight whisky and
other whisky must appear immediately adjacent to the neutral spirits
statement required by Sec. 5.70 and must read substantially as
follows:
(i) If the product contains only one straight whisky and no other
whisky: ``__ percent straight whisky __ years old;''
(ii) If the product contains more than one straight whisky but no
other whisky: ``__ percent straight whiskies __ years or more old.'' In
this case the age blank must state the age of the youngest straight
whisky in the product. However, in lieu of the foregoing statement, the
following statement may appear on the label: ``__ percent straight
whisky __ years old, __ percent straight whisky __ years old, and __
percent straight whisky __ years old'';
(iii) If the product contains only one straight whisky and one
other whisky: ``__ percent straight whisky __ years old, __ percent
whisky __ years old''; or
(iv) If the product contains more than one straight whisky and more
than one other whisky: ``__ percent straight whiskies __ years or more
old, __ percent whiskies __ years or more old.'' In this case, the age
blanks must state the age of the youngest straight whisky and the age
of the youngest other whisky. However, in lieu of the foregoing
statement, the following statement may appear on the label: ``__
percent straight whisky __ years old, __ percent straight whisky __
years old, __ percent whisky __ years old, and __ percent whisky __
years old'';
(3) In the case of an imported rye whisky, wheat whisky, malt
whisky, or rye malt whisky, a label on the product must state each age
and percentage in the manner and form that would be required if the
whisky had been made in the United States;
(4) In the case of whisky made in the United States and stored in
reused oak barrels, other than corn whisky, white whisky, unaged
whisky, and light whisky, in lieu of the words ``__ years old''
specified in paragraphs (b)(1) and (b)(2) of this section, the period
of storage in the reused oak barrels must appear on the label as
follows: ``stored __ years in reused cooperage;''
(5) In the case of white whisky that is not aged, the statement
must appear as follows: ``unaged,'' ``not aged,'' or a similar
statement. The designation ``unaged whisky'' satisfies this
requirement.
(c) Statements of age for rum, brandy, and agave spirits. A
statement of age on labels of rums, brandies, and agave spirits is
optional, except that, in the case of brandy (other than immature
brandies, fruit brandies, marc brandy, pomace brandy, Pisco brandy, and
grappa brandy, which are not customarily stored in oak barrels) not
stored in oak barrels for a period of at least two years, a statement
of age must appear on the label. Any statement of age authorized or
required under this paragraph must appear substantially as follows:
``__ years old,'' with the blank to be filled in with the age of the
youngest distilled spirits in the product.
(d) Statement of storage for grain spirits. In the case of grain
spirits, the period of storage in oak barrels may appear on a label
immediately adjacent to the percentage statement required under Sec.
5.73 of this part, for example: ``__% grain spirits stored __ years in
oak barrels.''
(e) Other distilled spirits. (1) Statements regarding age or
maturity or similar statements or representations on labels for all
other spirits, except neutral spirits, are permitted only when the
distilled spirits are stored in an oak barrel and, once dumped from the
barrel, subjected to no treatment besides mixing with water, filtering,
and bottling. If batches are made from barrels of spirits of different
ages, the label may only state the age of the youngest spirits.
(2) Statements regarding age or maturity or similar statements of
neutral spirits (except for grain spirits as stated in paragraph (c) of
this section) are prohibited from appearing on any label.
(f) Other age representations. (1) If a representation that is
similar to an age or maturity statement permitted under this section
appears on a label, a statement of age, in a manner that is conspicuous
and in characters at least half the type size of the representation,
must also appear on each label that carries the representation, except
in the following cases:
[[Page 60657]]
(i) The use of the word ``old'' or another word denoting age as
part of the brand name of the product is not deemed to be an age
representation that requires a statement of age; and
(ii) Labels of whiskies and brandies (other than immature brandies,
pomace brandy, marc brandy, Pisco brandy, and grappa brandy) not
required to bear a statement of age, and rum and agave spirits aged for
not less than four years, may contain general inconspicuous age,
maturity or similar representations without the label having to bear an
age statement.
(2) Distillation dates (which may be an exact date or a year) may
appear on a label of spirits where the spirits are manufactured solely
through distillation. A distillation date may only appear if an
optional or mandatory age statement is used on the label and must
appear in the same field of vision as the age statement.
Subpart F--Restricted Labeling Statements.
Sec. 5.81 General.
(a) Application. The labeling practices, statements, and
representations in this subpart may be used on distilled spirits labels
only when used in compliance with this subpart. In addition, if any of
the practices, statements, or representations in this subpart are used
elsewhere on containers or in packaging, they must comply with the
requirements of this subpart. For purposes of this subpart:
(1) The term ``label'' includes all labels on distilled spirits
containers on which mandatory information may appear, as set forth in
Sec. 5.61(a), as well as any other label on the container.
(2) The term ``container'' includes all parts of the distilled
spirits container, including any part of a distilled spirits container
on which mandatory information may appear, as well as those parts of
the container on which information does not satisfy mandatory labeling
requirements, as set forth in Sec. 5.61(b).
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering or other packaging of such containers used for sale
at retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of the practices in
this subpart, the term ``statement or representation'' includes any
statement, design, device, or representation, and includes pictorial or
graphic designs or representations as well as written ones. The term
``statement or representation'' includes explicit and implicit
statements and representations.
Food Allergen Labeling
Sec. 5.82 Voluntary disclosure of major food allergens.
(a) Definitions. For purposes of this section, the following terms
or phrases have the meanings indicated.
(1) Major food allergen means any of the following:
(i) Milk, egg, fish (for example, bass, flounder, or cod),
Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts
(for example, almonds, pecans, or walnuts), wheat, peanuts, and
soybeans; or
(ii) A food ingredient that contains protein derived from a food
specified in paragraph (a)(1)(i) of this section, except:
(A) Any highly refined oil derived from a food specified in
paragraph (a)(1)(i) of this section and any ingredient derived from
such highly refined oil; or
(B) A food ingredient that is exempt from major food allergen
labeling requirements pursuant to a petition for exemption approved by
the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or
pursuant to a notice submitted to FDA under 21 U.S.C. 343(w)(7),
provided that the food ingredient meets the terms or conditions, if
any, specified for that exemption.
(2) Name of the food source from which each major food allergen is
derived. ``Name of the food source from which each major food allergen
is derived'' means the name of the food as listed in paragraph
(a)(1)(i) of this section, except that:
(i) In the case of a tree nut, it means the name of the specific
type of nut (for example, almonds, pecans, or walnuts); and
(ii) In the case of Crustacean shellfish, it means the name of the
species of Crustacean shellfish (for example, crab, lobster, or
shrimp); and
(iii) The names ``egg'' and ``peanuts,'' as well as the names of
the different types of tree nuts, may be expressed in either the
singular or plural form, and the name ``soy,'' ``soybean,'' or ``soya''
may be used instead of ``soybeans.''
(b) Voluntary labeling standards. Major food allergens used in the
production of a distilled spirits product may, on a voluntary basis, be
declared on any label affixed to the container. However, if any one
major food allergen is voluntarily declared, all major food allergens
used in production of the distilled spirits product, including major
food allergens used as fining or processing agents, must be declared,
except when covered by a petition for exemption approved by the
appropriate TTB officer under Sec. 5.83. The major food allergens
declaration must consist of the word ``Contains'' followed by a colon
and the name of the food source from which each major food allergen is
derived (for example, ``Contains: egg'').
Sec. 5.83 Petitions for exemption from major food allergen labeling.
(a) Submission of petition. Any person may petition the appropriate
TTB officer to exempt a particular product or class of products from
the labeling requirements of Sec. 5.82. The burden is on the
petitioner to provide scientific evidence (as well as the analytical
method used to produce the evidence) that demonstrates that the
finished product or class of products, as derived by the method
specified in the petition, either:
(1) Does not cause an allergic response that poses a risk to human
health; or
(2) Does not contain allergenic protein derived from one of the
foods identified in Sec. 5.82(a)(1)(i), even though a major food
allergen was used in production.
(b) Decision on petition. TTB will approve or deny a petition for
exemption submitted under paragraph (a) of this section in writing
within 180 days of receipt of the petition. If TTB does not provide a
written response to the petitioner within that 180-day period, the
petition will be deemed denied, unless an extension of time for
decision is mutually agreed upon by the appropriate TTB officer and the
petitioner. TTB may confer with the Food and Drug Administration (FDA)
on petitions for exemption, as appropriate and as FDA resources permit.
TTB may require the submission of product samples and other additional
information in support of a petition; however, unless required by TTB,
the submission of samples or additional information by the petitioner
after submission of the petition will be treated as the withdrawal of
the initial petition and the submission of a new petition. An approval
or denial under this section will constitute final agency action.
(c) Resubmission of a petition. After a petition for exemption is
denied under this section, the petitioner may resubmit the petition
along with supporting materials for reconsideration at any time. TTB
will treat this submission as a new petition.
(d) Availability of information--(1) General. TTB will promptly
post to its website (https://www.ttb.gov) all
[[Page 60658]]
petitions received under this section, as well as TTB's responses to
those petitions. Any information submitted in support of the petition
that is not posted to the TTB website will be available to the public
pursuant to the Freedom of Information Act, at 5 U.S.C. 552, except
where a request for confidential treatment is granted under paragraph
(d)(2) of this section.
(2) Requests for confidential treatment of business information. A
person who provides trade secrets or other commercial or financial
information in connection with a petition for exemption under this
section may request that TTB give confidential treatment to that
information. A failure to request confidential treatment at the time
the information in question is submitted to TTB will constitute a
waiver of confidential treatment. A request for confidential treatment
of information under this section must conform to the following
standards:
(i) The request must be in writing;
(ii) The request must clearly identify the information to be kept
confidential;
(iii) The request must relate to information that constitutes trade
secrets or other confidential commercial or financial information
regarding the business transactions of an interested person, the
disclosure of which would cause substantial harm to the competitive
position of that person;
(iv) The request must set forth the reasons why the information
should not be disclosed, including the reasons why the disclosure of
the information would prejudice the competitive position of the
interested person; and
(v) The request must be supported by a signed statement by the
interested person, or by an authorized officer or employee of that
person, certifying that the information in question is a trade secret
or other confidential commercial or financial information and that the
information is not already in the public domain.
Production Claims
Sec. 5.84 Use of the term ``organic.''
Use of the term ``organic'' is permitted if any such use complies
with United States Department of Agriculture (USDA) National Organic
Program rules (7 CFR part 205), as interpreted by the USDA.
Sec. 5.85 Environmental, sustainability, and similar statements.
Statements related to environmental or sustainable agricultural
practices, social justice principles, and other similar statements
(such as, ``Produced using 100% solar energy'' or ``Carbon Neutral'')
may appear as long as the statements are truthful, specific and not
misleading. Statements or logos indicating environmental, sustainable
agricultural, or social justice certification (such as, ``Biodyvin,''
``Salmon-Safe,'' or ``Fair Trade Certified'') may appear on distilled
spirits that are actually certified by the appropriate organization.
Sec. 5.86 [Reserved]
Other Label Terms
Sec. 5.87 ``Barrel Proof'' and similar terms.
(a) The term ``barrel proof'' or ``cask strength'' may be used to
refer to distilled spirits stored in wood barrels only when the
bottling proof is not more than two degrees lower than the proof of the
spirits when the spirits are dumped from the barrels.
(b) The term ``original proof,'' ``original barrel proof,''
``original cask strength,'' or ``entry proof'' may be used only if the
distilled spirits were stored in wooden barrels and the proof of the
spirits entered into the barrel and the proof of the bottled spirits
are the same.
Sec. 5.88 Bottled in bond.
(a) The term ``bond,'' ``bonded,'' ``bottled in bond,'' or ``aged
in bond,'' or phrases containing these or synonymous terms, may be used
(including as part of the brand name) only if the distilled spirits
are:
(1) Composed of the same kind (type, if one is applicable to the
spirits, otherwise class) of spirits distilled from the same class of
materials;
(2) Distilled in the same distilling season (as defined in Sec.
5.1) by the same distiller at the same distillery.
(3) Stored for at least four years in wooden barrels wherein the
spirits have been in contact with the wood surface, except for gin and
vodka, which must be stored for at least four years in wooden barrels
coated or lined with paraffin or other substance which will preclude
contact of the spirits with the wood surface;
(4) Unaltered from their original condition or character by the
addition or subtraction of any substance other than by filtration,
chill proofing, or other physical treatments (which do not involve the
addition of any substance which will remain in the finished product or
result in a change in class or type);
(5) Reduced in proof by the addition of only pure water to 50
percent alcohol by volume (100 degrees of proof); and
(6) Bottled at 50 percent alcohol by volume (100 degrees of proof).
(b) Imported spirits labeled as ``bottled in bond'' or other
synonymous term described above must be manufactured in accordance with
paragraphs (a)(1) through (6) of this section and may only be so
labeled if the laws and regulations of the country in which the spirits
are manufactured authorize the bottling of spirits in bond and require
or specifically authorize such spirits to be so labeled. The ``bottled
in bond'' or synonymous statement must be immediately followed, in the
same font and type size, by the name of the country under whose laws
and regulations such distilled spirits were so bottled.
(c) Domestically manufactured spirits labeled as ``bottled in
bond'' or with some other synonymous statement must bear the real name
of the distillery or the trade name under which the distiller distilled
and warehoused the spirits, and the number of the distilled spirits
plant in which distilled, and the number of the distilled spirits plant
in which bottled. The label may also bear the name or trade name of the
bottler.
Sec. 5.89 Multiple distillation claims.
(a) Truthful statements about the number of distillations, such as
``double distilled,'' ``distilled three times,'' or similar terms to
convey multiple distillations, may be used; except that only additional
distillations beyond those required to meet the product's production
standards may be counted as additional distillations. For example, if
in order to meet the production standards for vodka (which requires the
spirits reach an alcohol content level of at least 95 percent), a
particular product must be distilled three times, and then the vodka is
distilled two more times, that vodka could be labeled as ``triple
distilled.'' For the purposes of this section only, the term
``distillation'' means a single run through a pot still or a single run
through a column of a column (reflux) still. For example, if a column
still has three separate columns, one complete additional run through
the system would constitute three additional distillations.
(b) The number of distillations may be understated but may not be
overstated.
Sec. 5.90 Terms related to Scotland.
(a) The words ``Scotch,'' ``Scots,'' ``Highland,'' or
``Highlands,'' and similar words connoting, indicating, or commonly
associated with Scotland, may only be used to designate distilled
spirits wholly manufactured in Scotland, except that the term ``Scotch
whisky'' may appear in the designation for a flavored spirit
(``Flavored Scotch Whisky'') or in a truthful statement of composition
(``Scotch whisky with natural flavors'') where the base distilled
spirit meets the requirements
[[Page 60659]]
for a Scotch whisky designation, regardless of where the finished
product is manufactured.
(b) In accordance with Sec. 5.127, statements relating to
government supervision may appear on Scotch whisky containers only if
such labeling statements are required or specifically authorized by the
applicable regulations of the United Kingdom.
Sec. 5.91 Use of the term ``pure.''
Distilled spirits labels, containers, or packaging may not bear the
word ``pure'' unless it:
(a) Refers to a particular ingredient used in the production of the
distilled spirits, and is a truthful representation about that
ingredient;
(b) Is part of the bona fide name of a permittee or retailer for
which the distilled spirits are bottled; or
(c) Is part of the bona fide name of the permittee that bottled the
distilled spirits.
Subpart G--Prohibited Labeling Practices
Sec. 5.101 General.
(a) Application. The prohibitions set forth in this subpart apply
to any distilled spirits label, container, or packaging. For purposes
of this subpart:
(1) The term ``label'' includes all labels on distilled spirits
containers on which mandatory information may appear, as set forth in
Sec. 5.61(a), as well as any other label on the container;
(2) The term ``container'' includes all parts of the distilled
spirits container, including any part of a distilled spirits container
on which mandatory information may appear, as well as those parts of
the container on which information does not satisfy mandatory labeling
requirements, as set forth in Sec. 5.61(b); and
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering or other packaging of such containers used for sale
at retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of the prohibited
practices in this subpart, the term ``statement or representation''
includes any statement, design, device, or representation, and includes
pictorial or graphic designs or representations as well as written
ones. The term ``statement or representation'' includes explicit and
implicit statements and representations.
Sec. 5.102 False or untrue statements.
Distilled spirits labels, containers, or packaging may not contain
any statement or representation that is false or untrue in any
particular.
Sec. 5.103 Obscene or indecent depictions.
Distilled spirits labels, containers, or packaging may not contain
any statement, design, device, picture, or representation that is
obscene or indecent.
Subpart H--Labeling Practices That Are Prohibited If They Are
Misleading
Sec. 5.121 General.
(a) Application. The labeling practices that are prohibited if
misleading set forth in this subpart apply to any distilled spirits
label, container, or packaging. For purposes of this subpart:
(1) The term ``label'' includes all labels on distilled spirits
containers on which mandatory information may appear, as set forth in
Sec. 5.61(a), as well as any other label on the container;
(2) The term ``container'' includes all parts of the distilled
spirits container, including any part of a distilled spirits container
on which mandatory information may appear, as well as those parts of
the container on which information does not satisfy mandatory labeling
requirements, as set forth in Sec. 5.61(b); and
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering or other packaging of such containers used for sale
at retail, but does not include shipping cartons or cases that are not
intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of this subpart, the
term ``statement or representation'' includes any statement, design,
device, or representation, and includes pictorial or graphic designs or
representations as well as written ones. The term ``statement or
representation'' includes explicit and implicit statements and
representations.
Sec. 5.122 Misleading statements or representations.
(a) General prohibition. Distilled spirits labels, containers, or
packaging may not contain any statement or representation, irrespective
of falsity, that is misleading to consumers as to the age, origin,
identity, or other characteristics of the distilled spirits, or with
regard to any other material factor.
(b) Ways in which statements or representations may be misleading.
(1) A statement or representation is prohibited, irrespective of
falsity, if it directly creates a misleading impression, or if it does
so indirectly through ambiguity, omission, inference, or by the
addition of irrelevant, scientific, or technical matter. For example,
an otherwise truthful statement may be misleading because of the
omission of material information, the disclosure of which is necessary
to prevent the statement from being misleading.
(2) As set forth in Sec. 5.212(b), all claims, whether implicit or
explicit, must have a reasonable basis in fact. Any claim on distilled
spirits labels, containers, or packaging that does not have a
reasonable basis in fact, or cannot be adequately substantiated upon
the request of the appropriate TTB officer, is considered misleading.
Sec. 5.123 Guarantees.
Distilled spirits labels, containers, or packaging may not contain
any statement relating to guarantees if the appropriate TTB officer
finds it is likely to mislead the consumer. However, money-back
guarantees are not prohibited.
Sec. 5.124 Disparaging statements.
(a) General. Distilled spirits labels, containers, or packaging may
not contain any false or misleading statement that explicitly or
implicitly disparages a competitor's product.
(b) Examples. (1) An example of an explicit statement that falsely
disparages a competitor's product is ``Brand X is not aged in oak
barrels,'' when such statement is not true.
(2) An example of an implicit statement that disparages
competitors' products in a misleading fashion is ``We do not add
arsenic to our distilled spirits,'' when such a claim may lead
consumers to falsely believe that other distillers do add arsenic to
their distilled spirits.
(c) Truthful and accurate comparisons. This section does not
prevent truthful and accurate comparisons between products (such as,
``Our liqueur contains more strawberries than Brand X'') or statements
of opinion (such as, ``We think our rum tastes better than any other
distilled spirits on the market'').
Sec. 5.125 Tests or analyses.
Distilled spirits labels, containers, or packaging may not contain
any statement or representation of or relating to analyses, standards,
or tests, whether or not it is true, that is likely to mislead the
consumer. An example of such a misleading statement is ``tested and
approved by our research laboratories'' if the testing and approval
does not in fact have any significance.
[[Page 60660]]
Sec. 5.126 Depictions of government symbols.
(a) Representations of the armed forces and flags. Distilled
spirits labels, containers, or packaging may not show an image of any
government's flag or any representation related to the armed forces of
the United States if the representation, standing alone or considered
together with any additional language or symbols on the label, creates
a false or misleading impression that the product was endorsed by, made
by, used by, or made under the supervision of, the government
represented by that flag or the armed forces of the United States. This
section does not prohibit the use of a flag as part of a claim of
American origin or another country of origin.
(b) Government seals. Distilled spirits labels, containers, or
packaging may not contain any government seal or other insignia that is
likely to create a false or misleading impression that the product has
been endorsed by, made by, used by, or made for, or under the
supervision of, or in accordance with the specification of, that
government. Seals required or specifically authorized by applicable law
or regulations and used in accordance with such law or regulations are
not prohibited.
Sec. 5.127 Depictions simulating government stamps or relating to
supervision.
Distilled spirits labels, containers, or packaging may not contain
any statements, images, and designs that mislead consumers to believe
that the distilled spirits are manufactured or processed under
government authority. Distilled spirits labels, containers, or
packaging may not contain images or designs resembling a stamp of the
U.S. Government or any State or foreign government, other than stamps
authorized or required by this or any other government, and may not
contain statements or indications that the distilled spirits are
distilled, blended, bottled, packed or sold under, or in accordance
with, any municipal, State, Federal, or foreign authorization, law, or
regulations, unless such statement is required or specifically
authorized by applicable law or regulation. If a municipal, State, or
Federal Government permit number is stated on distilled spirits labels,
containers, or packaging, it may not be accompanied by any additional
statement relating to that permit number.
Sec. 5.128 Claims related to wine or malt beverages.
(a) General. Except as provided in paragraph (b) of this section,
no label, carton, case, or any other packaging material may contain a
statement, design, or representation that tends to create a false or
misleading impression that the distilled spirits product is a wine or
malt beverage product, or that it contains wine or malt beverages. For
example, the use of the name of a class or type designation of a wine
or malt beverage product, as set forth in parts 4 or 7 of this chapter,
is prohibited, if the use of that name creates a misleading impression
as to the identity of the product. Homophones or coined words that
simulate or imitate a class or type designation are also prohibited.
(b) Exceptions. This section does not prohibit:
(1) A truthful and accurate statement of alcohol content;
(2) The use of a brand name of a wine or malt beverage product as a
distilled spirits product brand name, provided that the overall label
does not create a misleading impression as to the identity of the
product;
(3) The use of a wine or malt beverage cocktail name as a brand
name or a distinctive or fanciful name of a distilled spirits product,
provided that a statement of composition, in accordance with Sec.
5.166, appears in the same field of vision as the brand name or the
distinctive or fanciful name and the overall label does not create a
misleading impression about the identity of the product;
(4) The use of truthful and accurate statements about the
production of the distilled spirits product, as part of a statement of
composition or otherwise, such as ``flavored with chardonnay grapes,''
so long as such statements do not create a misleading impression as to
the identity of the product; or
(5) The use of terms that simply compare distilled spirits products
to wine or malt beverages without creating a misleading impression as
to the identity of the product.
Sec. 5.129 Health-related statements.
(a) Definitions. When used in this section, the following terms
have the meaning indicated:
(1) Health-related statement means any statement related to health
(other than the warning statement required under part 16 of this
chapter) and includes statements of a curative or therapeutic nature
that, expressly or by implication, suggest a relationship between the
consumption of alcohol, distilled spirits, or any substance found
within the distilled spirits product, and health benefits or effects on
health. The term includes both specific health claims and general
references to alleged health benefits or effects on health associated
with the consumption of alcohol, distilled spirits, or any substance
found within the distilled spirits, as well as health-related
directional statements. The term also includes statements and claims
that imply that a physical or psychological sensation results from
consuming the distilled spirits, as well as statements and claims of
nutritional value (for example, statements of vitamin content).
(2) Specific health claim means a type of health-related statement
that, expressly or by implication, characterizes the relationship of
distilled spirits, alcohol, or any substance found within the distilled
spirits, to a disease or health-related condition. Implied specific
health claims include statements, symbols, vignettes, or other forms of
communication that suggest, within the context in which they are
presented, that a relationship exists between alcohol, distilled
spirits, or any substance found within the distilled spirits, and a
disease or health-related condition.
(3) Health-related directional statement means a type of health-
related statement that directs or refers consumers to a third party or
other source for information regarding the effects on health of
distilled spirits or alcohol consumption.
(b) Rules for labeling--(1) Health-related statements. In general,
distilled spirits may not contain any health-related statement that is
untrue in any particular or tends to create a misleading impression as
to the effects on health of alcohol consumption. TTB will evaluate such
statements on a case-by-case basis and may require as part of the
health-related statement a disclaimer or some other qualifying
statement to dispel any misleading impression conveyed by the health-
related statement.
(2) Specific health claims. (i) TTB will consult with the Food and
Drug Administration (FDA), as needed, on the use of a specific health
claim on the distilled spirits. If FDA determines that the use of such
a labeling claim is a drug claim that is not in compliance with the
requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not
approve the use of that specific health claim on the distilled spirits.
(ii) TTB will approve the use of a specific health claim on a
distilled spirits label only if the claim is truthful and adequately
substantiated by scientific or medical evidence; is sufficiently
detailed and qualified with respect to the categories of individuals to
whom the claim applies; adequately discloses the health risks
associated with both moderate and heavier levels
[[Page 60661]]
of alcohol consumption; and outlines the categories of individuals for
whom any levels of alcohol consumption may cause health risks. This
information must appear as part of the specific health claim.
(3) Health-related directional statements. A health-related
directional statement is presumed misleading unless it:
(i) Directs consumers in a neutral or other non-misleading manner
to a third party or other source for balanced information regarding the
effects on health of distilled spirits or alcohol consumption; and
(ii)(A) Includes as part of the health-related directional
statement the following disclaimer: ``This statement should not
encourage you to drink or to increase your alcohol consumption for
health reasons;'' or
(B) Includes as part of the health-related directional statement
some other qualifying statement that the appropriate TTB officer finds
is sufficient to dispel any misleading impression conveyed by the
health-related directional statement.
Sec. 5.130 Appearance of endorsement.
(a) General. Distilled spirits labels, containers, or packaging may
not include the name, or the simulation or abbreviation of the name, of
any living individual of public prominence, or an existing private or
public organization, or any graphic, pictorial, or emblematic
representation of the individual or organization, if its use is likely
to lead a consumer to falsely believe that the product has been
endorsed, made, or used by, or produced for, or under the supervision
of, or in accordance with the specifications of, such individual or
organization. This section does not prohibit the use of such names
where the individual or organization has provided authorization for
their use.
(b) Documentation. The appropriate TTB officer may request
documentation from the bottler or importer to establish that the person
or organization has provided authorization to use the name of that
person or organization.
(c) Disclaimers. Statements or other representations do not violate
this section if, taken as a whole, they create no misleading impression
as to an implied endorsement either because of the context in which
they are presented or because of the use of an adequate disclaimer.
Subpart I--Standards of Identity for Distilled Spirits
Sec. 5.141 The standards of identity in general.
(a) General. Distilled spirits are divided, for labeling purposes,
into classes, which are further divided into specific types. As set
forth in Sec. 5.63, a distilled spirits product label must bear the
appropriate class, type or other designation. The standards that define
the classes and types are known as the ``standards of identity.'' The
classes and types of distilled spirits set forth in this subpart apply
only to distilled spirits for beverage or other nonindustrial purposes.
(b) Rules. (1) Unless otherwise specified, when a standard of
identity states that a mash is of a particular ingredient (such as
``fermented mash of grain''), the mash must be made entirely of that
ingredient without the addition of other fermentable ingredients.
(2) Where an intermediate product is used to manufacture a
distilled spirits product, the components of that intermediate product
are considered as being directly added to the finished product for
purposes of determining the class or type of the finished product and
for any applicable limitations or statements of composition.
(3) Some distilled spirits products may conform to the standards of
identity of more than one class. Such products may be designated with
any class designation defined in this subpart to which the products
conform.
(c) Designating with both class and type. If a product is
designated with both the class and the type, the class and type must be
in the same type size and in the same field of vision.
(d) Words in a designation. All words in a designation must be in
the same type size and must appear together.
Sec. 5.142 Neutral spirits or alcohol.
(a) The class neutral spirits. ``Neutral spirits'' or ``alcohol''
are distilled spirits distilled from any suitable material at or above
95 percent alcohol by volume (190[deg] proof), and, if bottled, bottled
at not less than 40 percent alcohol by volume (80[deg] proof). The
source material may, but need not, appear in the class designation (for
example, ``Apple Neutral Spirits'' or ``Grain Neutral Spirits'').
Neutral spirits other than the type ``grain spirits'' may be designated
as ``neutral spirits'' or ``alcohol'' on a label. Neutral spirits other
than the type ``grain spirits'' that are stored in wood barrels may not
be aged in wood barrels at any time.
(b) Types. The following chart lists the types of neutral spirits
and the rules that apply to the type designation.
------------------------------------------------------------------------
Type designation Standards
------------------------------------------------------------------------
(1) Vodka.................... Neutral spirits so distilled, or so
treated after distillation with charcoal
or other materials, as to be without
distinctive character, aroma, taste, or
color. Vodka may not be aged or stored
in wood barrels at any time except when
labeled as bottled in bond pursuant to
Sec. 5.68. Vodka treated and filtered
with not less than one ounce of
activated carbon or activated charcoal
per 100 wine gallons of spirits may be
labeled as ``charcoal filtered.'' Vodka
may contain up to two grams per liter of
sugar and up to one gram per liter of
citric acid. Addition of any other
flavoring or blending materials changes
the classification to flavored vodka or
to a distilled spirits specialty
product, as appropriate. Vodka must be
designated on the label as ``neutral
spirits,'' ``alcohol,'' or ``vodka''.
(2) Grain spirits............ Neutral spirits distilled from a
fermented mash of grain and stored in
oak barrels. ``Grain spirits'' must be
designated as such on the label. Grain
spirits may not be designated as
``neutral spirits'' or ``alcohol'' on
the label.
------------------------------------------------------------------------
Sec. 5.143 Whisky.
(a) The class whisky. ``Whisky'' or ``whiskey'' is distilled
spirits that is an alcoholic distillate from a fermented mash of any
grain distilled at less than 95 percent alcohol by volume (190[deg]
proof) having the taste, aroma, and characteristics generally
attributed to whisky, stored in oak barrels (except that corn whisky,
white whisky, and unaged whisky need not be so stored), and bottled at
not less than 40 percent alcohol by volume (80[deg] proof), and also
includes mixtures of such distillates for which no specific standards
of identity are prescribed.
(b) Label designations. The word whisky may be spelled as either
``whisky'' or ``whiskey''. Whisky conforming to one of the types of
whisky defined in paragraph (c) of this section must be designated as
that type on the label, except that whisky distilled in Tennessee may
be called ``Tennessee Whisky'' even if it conforms to one of the
specific type designations. The place, state, or region where the
[[Page 60662]]
whisky was distilled may appear as part of the designation on the label
if the distillation and any required aging took place in that location;
blending and bottling need not have taken place in the same place,
state, or region (e.g., ``New York Bourbon Whisky'' must be distilled
and aged in the State of New York). However, if any whisky is made
partially from whisky distilled in a country other than that indicated
by the type designation, the label must indicate the percentage of such
whisky and the country where that whisky was distilled. Additionally,
the label of whisky that does not meet one of the standards for
specific types of whisky and that is comprised of components distilled
in more than one country must contain a statement of composition
indicating the country of origin of each component (such as ``Whisky--
50% from Japan, 50% from the United States''). The word ``bourbon'' may
not be used to describe any whisky or whisky-based distilled spirits
not distilled and aged in the United States. The whiskies defined in
paragraphs (c)(2) through (6) and (10) through (14) of this section are
distinctive products of the United States and must have the country of
origin stated immediately adjacent to the type designation if it is
distilled outside of the United States, or the whisky designation must
be proceeded by the term ``American type'' if the country of origin
appears elsewhere on the label. For example, ``Brazilian Corn Whisky,''
``Rye Whisky distilled in Sweden,'' and ``Blended Whisky--Product of
Japan'' are statements that meet this country of origin requirement.
``Light whisky'' and ``Blended light whisky'' may only be produced in
the United States.
(c) Types of whisky. The following tables set out the designations
for whisky. Table 1 sets forth the standards for whisky that are
defined based on production, storage, and processing standards, while
Table 2 sets forth rules for the types of whisky that are defined as
distinctive products of certain countries. For the whiskies listed in
Table 1, a whisky may use the designation listed, when it complies with
the production standards in the subsequent columns. The ``source''
column indicates the source of the grain mash used to make the whisky.
The ``distillation proof'' indicates the allowable distillation proof
for that type. The ``storage'' column indicates the type of packages
(barrels) in which the spirits must be stored and limits for the proof
of the spirits when entering the packages. The ``neutral spirits
permitted'' column indicates whether neutral spirits may be used in the
product in their original state (and not as vehicles for flavoring
materials), and if so, how much may be used. The ``harmless coloring,
flavoring, blending materials permitted'' column indicates whether
harmless coloring, flavoring, or blending materials, other than neutral
spirits in their original form, described in Sec. 5.142, may be used
in the product. The use of the word ``straight'' is a further
designation of a type, and is optional. The designation ``white
whisky'' may only appear on whiskies that are clear in color and that
meet the rules in paragraph (b)(15) of this section.
Table 1 to Paragraph (c): Types of Whisky and Production, Storage, and Processing Standards
--------------------------------------------------------------------------------------------------------------------------------------------------------
Allowable coloring,
Type Source Distillation proof Storage Neutral spirits flavoring, blending
permitted materials permitted
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Whisky, which may be used as Fermented grain mash. Less than 190[deg]......... Oak barrels with no No.................. Yes.
the designation if the whisky minimum time
does not meet one of the type requirement.
designations.
(2) Bourbon Whisky, Rye Whisky, Fermented mash of not 160[deg] or less........... Charred new oak No.................. Yes, except for
Wheat Whisky, Malt Whisky, Rye less than 51%, barrels at 125[deg] bourbon whisky.
Malt Whisky, or [name of other respectively: Corn, or less.
grain] Whisky. Rye, Wheat, Malted
Barley, Malted Rye
Grain [Other grain].
(3) Corn Whisky. (Whisky Fermented mash of not 160[deg] or less........... Required only if age No.................. Yes.
conforming to this standard must less than 80% corn. is claimed on the
be designated as ``corn label. If stored,
whisky.''). must be stored at
125[deg] or less in
used or uncharred
new oak barrels.
(4) Straight Whisky............... Fermented mash of 160\0\ or less............. Charred new oak No.................. No.
less than 51% corn, barrels at 125\0\
rye, wheat, malted or less for a
barley, or malted minimum of two
rye grain. (Includes years.
mixtures of straight
whiskies made in the
same state.).
(5) Straight Bourbon Whisky, Fermented mash of not 160[deg] or less........... Charred new oak No.................. No.
Straight Rye Whisky, Straight less than 51%, barrels at 125[deg]
Wheat Whisky, Straight Malt respectively: Corn, or less for a
Whisky, or Straight Rye Malt Rye, Wheat, Malted minimum of two
Whisky. Barley, Malted Rye years.
Grain.
(6) Straight Corn Whisky.......... Fermented mash of not 160[deg] or less........... 125[deg] or less in No.................. No.
less than 80% corn. used or uncharred
new oak barrels for
a minimum of 2
years.
[[Page 60663]]
(7) Whisky distilled from Bourbon/ Fermented mash of not 160[deg] or less........... Used oak barrels.... No.................. Yes.
Rye/Wheat/Malt/Rye Malt/[Name of less than 51%,
other grain] mash. respectively: Corn,
Rye, Wheat, Malted
Barley, Malted Rye
Grain [Other grain].
(8) Light Whisky.................. Fermented grain mash. More than 160[deg]......... Used or uncharred No.................. Yes.
new oak barrels.
(9) Blended Light Whisky (Light Fermented grain mash Blend...................... Used or uncharred No.................. Yes.
Whisky--a blend). but mixed with less new oak barrels.
than 20% Straight
Whisky on a proof
gallon basis.
(10) Blended Whisky (Whisky--a At least 20% Straight 160[deg] or less........... Will contain a blend Maximum of 80% on a Yes.
blend). Whisky on a proof of spirits, some proof gallon basis.
gallon basis plus stored and some not
Whisky or Neutral stored.
Spirits alone or in
combination.
(11) Blended Bourbon Whisky, At least 51% on a Blend...................... Will contain a blend Maximum of 49% on a Yes.
Blended Rye Whisky, Blended Wheat proof gallon basis of spirits, some proof gallon basis.
Whisky, Blended Malt Whisky, of: Straight stored and some not
Blended Rye Malt Whisky, Blended Bourbon, Rye, Wheat, stored.
Corn Whisky (or __ Whisky--a Malt, Rye Malt, or
blend). Corn Whisky; the
rest comprised of
Whisky or Neutral
Spirits alone or in
combination.
(12) Blend of Straight Whiskies Mixture of Straight 160[deg] or less........... Will contain a blend No, except as part Yes.
(Blended Straight Whiskies). Whiskies that does of spirits which of a flavor.
not conform to were aged at least
``Straight Whisky''. two years.
(13) Blended Straight Bourbon Mixture of Straight 160[deg] or less........... Will contain a blend No, except as part Yes.
Whisky, Blended Straight Rye Whiskies of the same of spirits which of a flavor.
Whisky, Blended Straight Malt named type produced were aged at least
Whisky, Blended Straight Rye Malt in different states two years.
Whisky, Blended Straight Corn or produced in the
Whisky. same state but
contains flavoring
material.
(14) Spirit Whisky................ Mixture of Neutral Blend...................... Will contain a blend Maximum of 95% on a Yes.
Spirits and 5% or of spirits, some proof gallon basis.
more on a proof stored and some not
gallon basis of: stored.
Whisky or Straight
Whisky or a
combination of both.
The Straight Whisky
component must be
less than 20% on a
proof gallon basis.
(15) White Whisky or Unaged Whisky Fermented grain mash. Less than 190[deg]......... Storage is not No.................. Yes.
(Unaged whisky may only be used When the mash is required for
as a designation if the whisky is made up of at least ``white whisky''
not aged.). 51% of a single type and is prohibited
of grain, the for ``unaged
product may be whisky.'' If white
further designated whisky is stored,
as White [Name of oak barrels, with
grain] Whisky or no minimum time
Unaged [Name of requirement, and
grain] Whisky. filtered after
storage to remove
color.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 60664]]
Table 2 to Paragraph (c): Types of Whisky That Are Distinctive Products
------------------------------------------------------------------------
------------------------------------------------------------------------
(16) Scotch whisky........... Whisky which is a distinctive product of
Scotland, manufactured in Scotland in
compliance with the laws of the United
Kingdom regulating the manufacture of
Scotch whisky for consumption in the
United Kingdom: Provided, That if such
product is a mixture of whiskies, such
mixture is ``blended Scotch whisky'' or
``Scotch whisky--a blend''.
(17) Irish whisky............ Whisky which is a distinctive product of
Ireland, manufactured either in the
Republic of Ireland or in Northern
Ireland, in compliance with their laws
regulating the manufacture of Irish
whisky for home consumption: Provided,
That if such product is a mixture of
whiskies, such mixture is ``blended
Irish whisky'' or ``Irish whisky--a
blend''.
(18) Canadian whisky......... Whisky which is a distinctive product of
Canada, manufactured in Canada in
compliance with the laws of Canada
regulating the manufacture of Canadian
whisky for consumption in Canada:
Provided, That if such product is a
mixture of whiskies, such mixture is
``blended Canadian whisky'' or
``Canadian whisky--a blend''.
------------------------------------------------------------------------
Sec. 5.144 Gin.
(a) The class gin. ``Gin'' is distilled spirits made by original
distillation from mash, or by redistillation of distilled spirits, or
by mixing neutral spirits, with or over juniper berries and,
optionally, with or over other aromatics, or with or over extracts
derived from infusions, percolations, or maceration of such materials,
and includes mixtures of gin and neutral spirits. It must derive its
main characteristic flavor from juniper berries and be bottled at not
less than 40 percent alcohol by volume (80[deg] proof). Gin may be aged
in oak containers.
(b) Distilled gin. Gin made exclusively by original distillation or
by redistillation may be further designated as ``distilled,'' ``Dry,''
``London,'' ``Old Tom'' or some combination of these four terms.
Sec. 5.145 Brandy.
(a) The class brandy. ``Brandy'' is spirits that are distilled from
the fermented juice, mash, or wine of fruit, or from the residue
thereof, distilled at less than 95 percent alcohol by volume (190[deg]
proof) having the taste, aroma, and characteristics generally
attributed to the product, and bottled at not less than 40 percent
alcohol by volume (80[deg] proof).
(b) Label designations. Brandy conforming to one of the type
designations must be designated with the type name or specific
designation specified in the requirements for that type. The term
``brandy'' without further qualification (such as ``peach'' or
``marc'') may only be used as a designation on labels of grape brandy
as defined in paragraph (c)(1) of this section. Brandy conforming to
one of the type designations defined in paragraphs (c)(1) through (12)
of this section must be designated on the label with the type name
unless a specific designation is included in the requirements for that
type. Brandy, or mixtures thereof, not conforming to any of the types
defined in this section must be designated on the label as ``brandy''
followed immediately by a truthful and adequate statement of
composition.
(c) Types. Paragraphs (c)(1) through (12) of this section set out
the types of brandy and the standards for each type.
------------------------------------------------------------------------
Type Standards
------------------------------------------------------------------------
(1) Fruit brandy............. Brandy distilled solely from the
fermented juice or mash of whole, sound,
ripe fruit, or from standard grape or
other fruit wine, with or without the
addition of not more than 20 percent by
weight of the pomace of such juice or
wine, or 30 percent by volume of the
lees of such wine, or both (calculated
prior to the addition of water to
facilitate fermentation or
distillation). Fruit brandy includes
mixtures of such brandy with not more
than 30 percent (calculated on a proof
gallon basis) of lees brandy. Fruit
brandy derived solely from grapes and
stored for at least two years in oak
containers must be designated ``grape
brandy'' or ``brandy.'' Grape brandy
that has been stored in oak barrels for
fewer than two years must be designated
``immature grape brandy'' or ``immature
brandy.'' Fruit brandy, other than grape
brandy, derived from one variety of
fruit, must be designated by the word
``brandy'' qualified by the name of such
fruit (for example, ``peach brandy''),
except that ``apple brandy'' may be
designated ``applejack,'' ``plum
brandy'' may be designated
``Slivovitz,'' and ``cherry brandy'' may
be designated ``Kirschwasser.'' Fruit
brandy derived from more than one
variety of fruit must be designated as
``fruit brandy'' qualified by a truthful
and adequate statement of composition,
for example ``Fruit brandy distilled
from strawberries and blueberries.''
(2) Cognac or ``Cognac Grape brandy distilled exclusively in the
(grape) brandy''. Cognac region of France, which is
entitled to be so designated by the laws
and regulations of the French
government.
(3) Armagnac................. Grape brandy distilled exclusively in
France in accordance with the laws and
regulations of France regulating the
manufacture of Armagnac for consumption
in France.
(4) Brandy de Jerez.......... Grape brandy distilled exclusively in
Spain in accordance with the laws and
regulations of Spain regulating the
manufacture of Brandy de Jerez for
consumption in Spain.
(5) Calvados................. Apple brandy distilled exclusively in
France in accordance with the laws and
regulations of France regulating the
manufacture of Calvados for consumption
in France.
(6) Pisco.................... Grape brandy distilled in Peru or Chile
in accordance with the laws and
regulations of the country of
manufacture of Pisco for consumption in
the country of manufacture, including:
(i) ``Pisco Per[uacute]'' (or ``Pisco
Peru''), which is Pisco manufactured in
Peru in accordance with the laws and
regulations of Peru governing the
manufacture of Pisco for consumption in
that country; and
(ii) ``Pisco Chileno'' (or ``Chilean
Pisco''), which is Pisco manufactured in
Chile in accordance with the laws and
regulations of Chile governing the
manufacture of Pisco for consumption in
that country.
(7) Dried fruit brandy....... Brandy that conforms to the standard for
fruit brandy except that it has been
derived from sound, dried fruit, or from
the standard wine of such fruit. Brandy
derived from raisins, or from raisin
wine, must be designated ``raisin
brandy.'' Dried fruit brandy, other than
raisin brandy, must be designated by the
word ``brandy'' qualified by the name of
the dried fruit from which made preceded
by the word ``dried'', for example,
``dried apricot brandy.''
(8) Lees brandy.............. Brandy distilled from the lees of
standard grape or other fruit wine, and
such brandy derived solely from grapes
must be designated ``grape lees brandy''
or ``lees brandy.'' Lees brandy derived
from fruit other than grapes must be
designated as ``lees brandy,'' qualified
by the name of the fruit from which such
lees are derived, for example, ``cherry
lees brandy.''
[[Page 60665]]
(9) Pomace brandy or Marc Brandy distilled from the skin and pulp
brandy. of sound, ripe grapes or other fruit,
after the withdrawal of the juice or
wine therefrom. Such brandy derived
solely from grape components must be
designated ``grape pomace brandy,''
``grape marc brandy'', ``pomace
brandy,'' or ``mark brandy.'' Grape
pomace brandy may alternatively be
designated as ``grappa'' or ``grappa
brandy.'' Pomace or marc brandy derived
from fruit other than grapes must be
designated as ``pomace brandy'' or
``marc brandy'' qualified by the name of
the fruit from which derived, for
example, ``apple pomace brandy'' or
``pear marc brandy.''
(10) Residue brandy.......... Brandy distilled wholly or in part from
the fermented residue of fruit or wine.
Such brandy derived solely from grapes
must be designated ``grape residue
brandy,'' or ``residue brandy.'' Residue
brandy, derived from fruit other than
grapes, must be designated as ``residue
brandy'' qualified by the name of the
fruit from which derived, for example,
``orange residue brandy.'' Brandy
distilled wholly or in part from residue
materials which conforms to any of the
standards set forth in paragraphs (b)(1)
and (7) through (9) of this section may,
regardless of such fact, be designated
``residue brandy'', but the use of such
designation shall be conclusive,
precluding any later change of
designation.
(11) Neutral brandy.......... Any type of brandy distilled at more than
85% alcohol by volume (170[deg] proof)
but less than 95% alcohol by volume.
Such brandy derived solely from grapes
must be designated ``grape neutral
brandy,'' or ``neutral brandy.'' Other
neutral brandies, must be designated in
accordance with the rules for those
types of brandy, and be qualified by the
word ``neutral''; for example, ``neutral
citrus residue brandy''.
(12) Substandard brandy...... Any brandy:
(i) Distilled from fermented juice,
mash, or wine having a volatile acidity,
calculated as acetic acid and exclusive
of sulfur dioxide, in excess of 0.20
gram per 100 cubic centimeters (20
degrees Celsius); measurements of
volatile acidity must be calculated
exclusive of water added to facilitate
distillation.
(ii) distilled from unsound, moldy,
diseased, or decomposed juice, mash,
wine, lees, pomace, or residue, or which
shows in the finished product any taste,
aroma, or characteristic associated with
products distilled from such material.
(iii) Such brandy derived solely from
grapes must be designated ``substandard
grape brandy,'' or ``substandard
brandy.'' Other substandard brandies
must be designated in accordance with
the rules for those types of brandy, and
be qualified by the word
``substandard''; for example,
``substandard fig brandy''.
------------------------------------------------------------------------
Sec. 5.146 Blended applejack.
(a) The class blended applejack. ``Blended applejack'' is a mixture
containing at least 20 percent on a proof gallon basis of apple brandy
(applejack) that has been stored in oak barrels for not less than two
years, and not more than 80 percent of neutral spirits on a proof
gallon basis. Blended applejack must be bottled at not less than 40
percent alcohol by volume (80[deg] proof).
(b) Label designation. The label designation for blended applejack
may be ``blended applejack'' or ``applejack-a blend.''
Sec. 5.147 Rum.
(a) The class rum. ``Rum'' is distilled spirits that is distilled
from the fermented juice of sugar cane, sugar cane syrup, sugar cane
molasses, or other sugar cane by-products at less than 95 percent
alcohol by volume (190[deg] proof) having the taste, aroma, and
characteristics generally attributed to rum, and bottled at not less
than 40 percent alcohol by volume (80[deg] proof); and also includes
mixtures solely of such spirits. All rum may be designated as ``rum''
on the label, even if it also meets the standards for a specific type
of rum.
(b) Types. Paragraph (b)(1) of this section describes a specific
type of rum and the standards for that type.
------------------------------------------------------------------------
Type Standards
------------------------------------------------------------------------
(1) Cacha[ccedil]a........... 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''). Cacha[ccedil]a may be
designated as ``Cacha[ccedil]a'' or
``rum'' on labels.
(2) [Reserved]
------------------------------------------------------------------------
Sec. 5.148 Agave spirits.
(a) The class agave spirits. ``Agave spirits'' are distilled from a
fermented mash, of which at least 51 percent is derived from plant
species in the genus Agave and up to 49 percent is derived from sugar.
Agave spirits must be distilled at less than 95 percent alcohol by
volume (190[deg] proof) and bottled at or above 40 percent alcohol by
volume (80[deg] proof). Agave spirits may be stored in wood barrels.
Agave spirits may not contain added flavoring or coloring materials,
except as specified in Sec. 5.155. This class also includes mixtures
of agave spirits. Agave spirits that meet the standard of identity for
``Tequila'' or ``Mezcal'' may be designated as ``agave spirits,'' or as
``Tequila'' or ``Mezcal'', as applicable.
(b) Types. Paragraphs (b)(1) and (2) of this section describe the
types of agave spirits and the rules for each type.
------------------------------------------------------------------------
Type Standards
------------------------------------------------------------------------
(1) Tequila.................. An agave spirit that is a distinctive
product of Mexico. Tequila must be made
in Mexico, in compliance with the laws
and regulations of Mexico governing the
manufacture of Tequila for consumption
in that country.
(2) Mezcal................... An agave spirit that is a distinctive
product of Mexico. Mezcal must be made
in Mexico, in compliance with the laws
and regulations of Mexico governing the
manufacture of Mezcal for consumption in
that country.
------------------------------------------------------------------------
[[Page 60666]]
Sec. 5.149 Absinthe or absinth.
(a) The class absinthe. Absinthe is distilled spirits distilled at
less than 95 percent alcohol by volume (190[deg] proof) made with
wormwood (Artemisia absinthium), anise, and fennel (with or without
other flavoring materials) and possessing the taste, aroma, and
characteristics generally attributed to absinthe. Absinthe may contain
added sugar. When bottled, absinthe must be at least 30 percent alcohol
by volume (60[deg] of proof). The designations ``absinthe'' and
``absinth'' are interchangeable.
(b) Thujone-free requirement. Absinthe must be thujone-free in
accordance with U.S. Food and Drug Administration (FDA) regulations and
standards.
Sec. 5.150 Cordials and liqueurs.
(a) The class cordials and liqueurs. Cordials and liqueurs are
flavored distilled spirits that are made by mixing or redistilling
distilled spirits with or over fruits, flowers, plants, or pure juices
therefrom, or other natural flavoring materials, or with extracts
derived from infusions, percolation, or maceration of such materials,
and containing sugar (such as sucrose, fructose, dextrose, or levulose)
in an amount of not less than 2\1/2\ percent by weight of the finished
product. Designations on labels may be ``Cordial'' or ``Liqueur,'' or,
in the alternative, may be one of the type designations below. Cordials
and liqueurs may not be designated as ``distilled,'' ``compound,'' or
``straight''. The designation of a cordial or liqueur may include the
word ``dry'' if sugar is less than 10 percent by weight of the finished
product.
(b) Types. Paragraph (b)(1) through (12) of this section list
definitions and standards for optional type designations.
------------------------------------------------------------------------
The Types of Cordials and Liqueurs
-------------------------------------------------------------------------
Type Rule
------------------------------------------------------------------------
(1) Sloe gin................. A cordial or liqueur with the main
characteristic flavor derived from sloe
berries.
(2) Rye liqueur, bourbon Liqueurs, bottled at not less than 30
liqueur (or rye cordial or percent alcohol by volume, in which not
bourbon cordial). less than 51 percent, on a proof gallon
basis, of the distilled spirits used
are, respectively, rye or bourbon
whisky, straight rye or straight bourbon
whisky, or whisky distilled from a rye
or bourbon mash, and which possess a
predominant characteristic rye or
bourbon flavor derived from such whisky.
Wine, if used, must be within the 2\1/2\
percent limitation provided in Sec.
5.155 for coloring, flavoring, and
blending materials.
(3) Rock and rye; Rock and Liqueurs, bottled at not less than 24
bourbon; Rock and brandy; percent alcohol by volume, in which, in
Rock and rum. the case of rock and rye and rock and
bourbon, not less than 51 percent, on a
proof gallon basis, of the distilled
spirits used are, respectively, rye or
bourbon whisky, straight rye or straight
bourbon whisky, or whisky distilled from
a rye or bourbon mash, and, in the case
of rock and brandy and rock and rum, the
distilled spirits used are all grape
brandy or rum, respectively; containing
rock candy or sugar syrup, with or
without the addition of fruit, fruit
juices, or other natural flavoring
materials, and possessing, respectively,
a predominant characteristic rye,
bourbon, brandy, or rum flavor derived
from the distilled spirits used. Wine,
if used, must be within the 2\1/2\
percent limitation provided in Sec.
5.155 for harmless coloring, flavoring,
and blending materials.
(4) Rum liqueur, gin liqueur, Liqueurs, bottled at not less than 30
brandy liqueur. percent alcohol by volume, in which the
distilled spirits used are entirely rum,
gin, or brandy, respectively, and which
possess, respectively, a predominant
characteristic rum, gin, or brandy
flavor derived from the distilled
spirits used. In the case of brandy
liqueur, the type of brandy must be
stated in accordance with paragraph (d)
of this section, except that liqueurs
made entirely with grape brandy may be
designated simply as ``brandy liqueur.''
Wine, if used, must be within the 2\1/2\
percent limitation provided for in Sec.
5.155 for harmless coloring, flavoring,
and blending materials.
(5) Amaretto................. Almond flavored liqueur/cordial.
(6) Kummel................... Caraway flavored liqueur/cordial.
(7) Ouzo, Anise, Anisette.... Anise flavored liqueurs/cordials.
(8) Sambuca.................. Anise flavored liqueur. See Sec.
5.154(b)(3) for designation rules for
Sambuca not produced in Italy.
(9) Peppermint Schnapps...... Peppermint flavored liqueur/cordial.
(10) Triple Sec and Curacao.. Orange flavored liqueurs/cordials.
Curacao may be preceded by the color of
the liqueur/cordial (for example, Blue
Curacao).
(11) Cr[egrave]me de ___..... A liqueur/cordial where the blank is
filled in with the predominant flavor
(for example, Cr[egrave]me de menthe is
mint flavored liqueur/cordial.)
(12) Goldwasser.............. Herb flavored liqueur/cordial and
containing gold flakes. See Sec.
5.154(b)(3) for designation rules for
goldwasser not made in Germany.
------------------------------------------------------------------------
Sec. 5.151 Flavored spirits.
(a) The class flavored spirits. ``Flavored spirits'' are distilled
spirits that are spirits conforming to one of the standards of identity
set forth in Sec. Sec. 5.142 through 5.150 (the ``base spirits'') to
which have been added nonbeverage flavors, wine, or nonalcoholic
natural flavoring materials, with or without the addition of sugar, and
bottled at not less than 30 percent alcohol by volume (60[deg] proof).
The flavored spirits must be specifically designated by the single base
spirit and one or more of the most predominant flavors (for example,
``Pineapple Flavored Tequila'' or ``Cherry Vanilla Flavored Bourbon
Whisky''). The base spirit must conform to the standard of identity for
that spirit before the flavoring is added. Base spirits that are a
distinctive product of a particular place must be manufactured in
accordance with the laws and regulations of the country as designated
in the base spirit's standard of identity. If the finished product
contains more than 2\1/2\ percent by volume of wine, the kinds and
percentages by volume of wine must be stated as a part of the
designation (whether the wine is added directly to the product or
whether it is first mixed into an intermediate product), except that a
flavored brandy may contain an additional 12\1/2\ percent by volume of
wine, without label disclosure, if the additional wine is derived from
the particular fruit corresponding to the labeled flavor of the
product.
Sec. 5.152 Imitations.
(a) Imitations must bear, as a part of the designation thereof, the
word ``imitation'' and include the following:
(1) Any class or type of distilled spirits to which has been added
coloring or flavoring material of such nature as to cause the resultant
product to simulate any other class or type of distilled spirits;
[[Page 60667]]
(2) Any class or type of distilled spirits (other than distilled
spirits specialty products as defined in Sec. 5.156) to which has been
added flavors considered to be artificial or imitation. (Note: TTB
Procedure XXXX-XX, available on the TTB website (https://www.ttb.gov)
provides guidance on the use of the terms ``natural'' and
``artificial'' when referencing flavoring materials);
(3) Any class or type of distilled spirits (except cordials,
liqueurs and specialties marketed under labels which do not indicate or
imply that a particular class or type of distilled spirits was used in
the manufacture thereof) to which has been added any whisky essence,
brandy essence, rum essence, or similar essence or extract which
simulates or enhances, or is used by the trade or in the particular
product to simulate or enhance, the characteristics of any class or
type of distilled spirits;
(4) Any type of whisky to which beading oil has been added;
(5) Any rum to which neutral spirits or distilled spirits other
than rum have been added;
(6) Any brandy made from distilling material to which has been
added any amount of sugar other than the kind and amount of sugar
expressly authorized in the production of standard wine; and
(7) Any brandy to which neutral spirits or distilled spirits other
than brandy have been added, except that this provision shall not apply
to any product conforming to the standard of identity for blended
applejack.
(b) If any of the standards set forth in paragraphs (a)(1) through
(7) of this section apply, the ``Imitation'' class designation must be
used in front of the appropriate class designation (for example,
Imitation Whisky).
Sec. 5.153 Diluted spirits.
(a) The class diluted spirits. When a minimum bottling alcohol
content (proof) is required for a class or type and a product would
meet one of the classes or types prescribed in this subpart except that
that product does not meet the minimum bottling alcohol content, the
product must be designated with the applicable class or type
designation (and statement of composition, if required) immediately
preceded by the word ``Diluted'' in readily legible type at least half
as large as the class or type designation to which it refers. Examples
of such designations are ``Diluted Vodka,'' ``Diluted Cherry Lees
Brandy,'' and ``Diluted flavored whisky.''
(b) [Reserved]
Sec. 5.154 Rules for geographical designations.
(a) Geographical designations. (1) Geographical names for distilled
spirits found by the appropriate TTB officer to have lost their
geographical significance by usage and common knowledge to such extent
that they have become generic may be used without regard to where the
product is actually manufactured or bottled. The following names have
been found to be generic: London dry gin, Geneva (Hollands) gin.
(2) Except as provided in paragraph (a)(3) of this section,
geographical names that have not become generic shall not be applied to
distilled spirits made in any place other than the particular place or
region indicated in the name. Examples are Greek brandy, Jamaica rum,
Puerto Rico rum, Demerara rum, and Andong Soju.
(3) Geographical names that are not generic may be used as the
designation for types of distilled spirits made in a place other than
the particular region indicated by the name if:
(i) The appropriate TTB officer has determined that the name
represents a type of distilled spirits;
(ii) The word ``type,'' ``style,'' or some other statement
indicating the true place of production appears as part of the
designation; and
(iii) The distilled spirits to which the name is applied conforms
to the standard of identity identified in this subpart.
(iv) The following geographical names are recognized as types of
distilled spirits in accordance with paragraph (a)(3)(i) of this
section: Eau de Vie de Dantzig (Danziger Goldwasser), Ojen, and Swedish
punch.
(b) Products without geographical designations that are associated
with a particular geographical region. (1) A name that is not a
geographical name but that is generally perceived as a name associated
with a particular geographic place, region, or country may not be used
on the label of a product of any other place, region or country, except
as otherwise provided in this paragraph.
(2) Designations for distilled spirits listed in this paragraph and
that by usage and common knowledge have lost any geographical
significance to such an extent that the appropriate TTB officer finds
they have become generic may be used to designate spirits of any
origin. Examples of names that TTB has found to be generic include:
Zubrovka, Aquavit, Arrack, Kummel, Amaretto, and Ouzo.
(3) Designations for distilled spirits listed in this paragraph
that the appropriate TTB officer has determined have, by usage and
common knowledge, become associated with distilled spirits produced in
geographic areas other than the region with which the name was
originally associated may be used to designate products of any origin,
as long as the designation for such product includes the word ``type''
or an adjective such as ``American'' that clearly indicates the true
place of production. TTB has determined that the names ``Habanero,''
``Sambuca,'' and ``Goldwasser'' fall into this category.
Sec. 5.155 Alteration of class and type.
(a) Definitions--(1) Coloring, flavoring, or blending material. For
the purposes of this section, the term ``coloring, flavoring, or
blending material'' means a harmless substance that is an essential
component of the class or type of distilled spirits to which it is
added; or a harmless substance, such as caramel, straight malt or
straight rye malt whiskies, fruit juices, sugar, infusion of oak chips
when approved by the Administrator, or wine, that is not an essential
component part of the distilled spirits product to which it is added
but which is customarily employed in the product in accordance with
established trade usage.
(2) Certified color. For purposes of this section, the term
``certified color'' means a color additive that is required to undergo
batch certification in accordance with part 74 or part 82 of the Food
and Drug Administration regulations (21 CFR parts 74 and 82). An
example of a certified color is FD&C Blue No. 2.
(b) Allowable additions. Except as provided in paragraph (c) of
this section, the following may be added to distilled spirits without
changing the class or type designation:
(1) Coloring, flavoring, and blending materials that are essential
components of the class or type of distilled spirits to which added;
(2) Coloring, flavoring, and blending materials that are not
essential component parts of the distilled spirits to which added,
provided that such coloring, flavoring, or blending materials do not
total more than 2 \1/2\ percent by volume of the finished product; and
(3) Wine, when added to Canadian whisky in Canada in accordance
with the laws and regulations of Canada governing the manufacture of
Canadian whisky.
(c) Exceptions. The addition of the following will require a
redesignation of the class or type of the distilled spirits product to
which added:
(1) Coloring, flavoring, or blending materials that are not
essential component parts of the class or type of
[[Page 60668]]
distilled spirits to which they are added, if such coloring, flavoring,
and blending materials total more than 2\1/2\ percent by volume of the
finished product;
(2) Any material, other than caramel, infusion of oak chips, and
sugar, added to Cognac brandy;
(3) Any material whatsoever added to neutral spirits or straight
whisky, except that vodka may be treated with sugar, in an amount not
to exceed two grams per liter, and with citric acid, in an amount not
to exceed one gram per liter;
(4) Certified colors, carmine, or cochineal extract;
(5) Any material that would render the product to which it is added
an imitation, as defined in Sec. 5.152; or
(6) For products that are required to be stored in oak barrels in
accordance with a standard of identity, the storing of the product in
an additional barrel made of another type of wood.
(d) Extractions from distilled spirits. The removal of any
constituents from a distilled spirits product to such an extent that
the product no longer possesses the taste, aroma, and characteristics
generally attributed to that class or type of distilled spirits will
alter the class or type of the product, and the resulting product must
be redesignated appropriately. In addition, in the case of straight
whisky, the removal of more than 15 percent of the fixed acids,
volatile acids, esters, soluble solids, or higher alcohols, or the
removal of more than 25 percent of the soluble color, constitutes an
alteration of the class or type of the product and requires a
redesignation of the product.
(e) Exceptions. Nothing in this section has the effect of modifying
the standards of identity specified in Sec. 5.150 for cordials and
liqueurs, and in Sec. 5.151 for flavored spirits, or of authorizing
any product defined in Sec. 5.152 to be designated as other than an
imitation.
Sec. 5.156 Distilled spirits specialty products.
(a) General. Distilled spirits that do not meet one of the other
standards of identity specified in this subpart are distilled spirits
specialty products and must be designated in accordance with trade and
consumer understanding, or, if no such understanding exists, with a
distinctive or fanciful name (which may be the name of a cocktail)
appearing in the same field of vision as a statement of composition.
The statement of composition and the distinctive or fanciful name serve
as the class and type designation for these products. The statement of
composition must follow the rules found in Sec. 5.166. A product may
not bear a designation which indicates it contains a class or type of
distilled spirits unless the distilled spirits therein conform to such
class and type.
(b) Products designated in accordance with trade and consumer
understanding. Products may be designated in accordance with trade and
consumer understanding without a statement of composition if the
appropriate TTB officer has determined that there is such
understanding.
Sec. Sec. 5.157-5.165 [Reserved]
Sec. 5.166 Statements of composition.
(a) Rules for the statement of composition. When a statement of
composition is required as part of a designation for a distilled
spirits specialty product, the statement must contain all of the
information specified in this section, as applicable. The statement
must specify all harmless coloring, flavoring, and blending materials,
except to the extent the materials in the product are part of a
distilled spirit that is identified in the statement of composition and
the distilled spirit contains the materials within the limitations
specified in the standards of identity for the distilled spirit, or the
standards set out in Sec. 5.155. If an intermediate product is used to
make a distilled spirits specialty product, the materials used to make
the intermediate product should be identified in the statement of
composition as if they were mixed directly into the distilled spirits
without regard to the fact that they were first mixed into an
intermediate product.
(1) Identify the distilled spirits and wines. The statement of
composition must clearly identify the distilled spirits and wines used
in the finished product. The statement of composition must show the
required class and/or type designation for each distilled spirit (e.g.,
``vodka,'' ``whisky,'' ``rum,'' ``gin''). The statement of composition
must identify any wines used in the product, but the statement is not
required to specifically identify the classes and/or types of the
wines. The statement of composition must list each distilled spirit and
wine in order of predominance on a proof gallon basis. If a product
contains multiple classes and/or types of wine and the statement of
composition does not specifically identify each one, the predominance
of the wine must be determined based on its total quantity in the
product on a proof gallon basis.
(2) Identify flavoring and blending material(s) (not including
distilled spirits and wines) used before, during, and after
distillation. The statement of composition must disclose flavoring and
blending materials used in the finished product. If the flavoring
materials were used before or during the distillation process, the
statement of composition must indicate that the distilled spirits were
distilled with the flavoring material (e.g., Vodka Distilled with
Cinnamon). If a single flavoring material is used in the production of
the distilled spirits product, the flavoring material may be
specifically identified (such as, ``strawberry flavor,'' ``strawberry
juice,'' or ``whole strawberries'') or generally referenced (such as,
``natural flavor''). If two or more flavoring materials are used in the
production of the distilled spirits product, each flavoring material
may be specifically identified (such as, ``peach flavor, kiwi flavor,''
or ``peach and kiwi flavors'') or the characterizing flavor may be
specifically identified and the remaining flavoring material(s) may be
generally referenced (such as, ``peach and other natural and artificial
flavor(s)''), or all flavors may be generally referenced (such as,
``with artificial flavors''). (Note: TTB Procedure XXXX-XX, available
on the TTB website (https://www.ttb.gov), provides guidance on the use
of the terms ``natural'' and ``artificial'' when referencing flavoring
materials.)
(3) Identify added coloring material(s). The statement of
composition must disclose the addition of coloring material(s), whether
added directly or through flavoring material(s), if the addition of
such material(s) to the base distilled spirits is not in accordance
with the standards of identity. The coloring material(s) may be
identified specifically (such as, ``caramel color,'' ``FD&C Red #40,''
``annatto,'' etc.) or as a general statement, such as, ``Contains
certified color'', for colors approved under 21 CFR part 74, or
``artificially colored,'' to indicate the presence of any one or a
combination of coloring material(s). However, FD&C Yellow No. 5,
cochineal extract, and carmine require specific disclosure in
accordance with Sec. 5.71 and may be disclosed either in the statement
of composition or elsewhere, in accordance with that section, if the
statement of composition contains only a general disclosure of added
colors. Where the standard of identity for that base spirit does not
require disclosure, caramel used in the production of the base spirit
is not required to be disclosed as part of the statement of
composition. However, caramel added in the production of the specialty
product must be disclosed.
(4) Identify added artificial or other non-nutritive sweeteners.
The statement of composition must disclose any artificial sweetener
that is added to a distilled spirits product, whether the artificial
sweetener is added directly or
[[Page 60669]]
through flavoring material(s). The artificial sweetener may be
identified specifically by either generic name or trademarked brand
name, or as a general statement (such as ``artificially sweetened''),
to indicate the presence of any one or combination of artificial
sweeteners. However, if aspartame is used, an additional warning
statement is required in accordance with Sec. 5.63.
(5) Identify certain ingredients. The statement of composition must
disclose any ingredient that is permitted by a standard of identity,
but used in a method or quantity that makes the finished product no
longer meet the standard of identity. For example, vodka to which more
than two grams of sugar per liter is added is no longer designated as
vodka. The statement of composition may read ``Vodka with added
sugar.''
(b) [Reserved]
Subpart J--Formulas
Sec. 5.191 Application.
The requirements of this subpart apply to the following persons:
(a) Proprietors of distilled spirits plants qualified as processors
under part 19 of this chapter;
(b) Persons in the Commonwealth of Puerto Rico who manufacture
distilled spirits products for shipment to the United States. However,
the filing of a formula for approval by TTB is only required for those
products that will be shipped to the United States; and
(c) Persons who ship Virgin Islands distilled spirits products into
the United States.
Sec. 5.192 Formula requirements.
(a) General. An approved formula is required to blend, mix, purify,
refine, compound, or treat distilled spirits in a manner that results
in a change of class or type of the spirits.
(b) Preparation and submission. In order to obtain formula
approval, a person listed in Sec. 5.191 must complete and file TTB
Form 5100.51, Formula and Process for Domestic and Imported Alcohol
Beverages, electronically or in paper format, in accordance with the
instructions for the form. When a product will be made or processed
under the same formula at more than one location operated by the
distiller or processor, the distiller or processor must identify on the
form each place of production or processing by name and address, and by
permit number, if applicable, and must ensure that a copy of the
approved formula is maintained at each location.
(c) Existing approvals. Any approval of a formula will remain in
effect until revoked, superseded, or voluntarily surrendered, and if
the formula is revoked, superseded, or voluntarily surrendered, any
existing qualifying statements on such approval as to the rate of tax
or the limited use of alcoholic flavors will be made obsolete.
(d) Change in formula. Any change in an approved formula requires
the filing of a new Form 5100.51 for approval of the changed formula.
After a changed formula is approved, the filer must surrender the
original formula approval to the appropriate TTB officer.
Sec. 5.193 Operations requiring formulas.
The following operations change the class or type of distilled
spirits and therefore require formula approval under Sec. 5.192:
(a) The compounding of distilled spirits through the mixing of a
distilled spirits product with any coloring or flavoring material,
wine, or other material containing distilled spirits (except for
harmless coloring, flavoring or blending materials that do not alter
the class or type pursuant to Sec. 5.155);
(b) The manufacture of an intermediate product to be used
exclusively in other distilled spirits products on bonded premises;
(c) Any filtering or stabilizing process that results in a
distilled spirits product's no longer possessing the taste, aroma, and
characteristics generally attributed to the class or type of distilled
spirits before the filtering or stabilizing, or, in the case of
straight whisky, that results in the removal of more than 15 percent of
the fixed acids, volatile acids, esters, soluble solids, or higher
alcohols, or more than 25 percent of the soluble color;
(d) The mingling of spirits that differ in class or in type of
materials from which made;
(e) The mingling of distilled spirits that were stored in charred
cooperage with distilled spirits that were stored in plain or reused
cooperage, or the mixing of distilled spirits that have been treated
with wood chips with distilled spirits not so treated, or the mixing of
distilled spirits that have been subjected to any treatment which
changes their character with distilled spirits not subjected to such
treatment, unless it is determined by the appropriate TTB officer in
each of these cases that the composition of the distilled spirits is
the same notwithstanding the storage in different kinds of cooperage or
the treatment of a portion of the spirits;
(f) Except when authorized for production or storage operations by
part 19 of this chapter, the use of any physical or chemical process or
any apparatus that accelerates the maturing of the distilled spirits;
(g) The steeping or soaking of plant materials, such as fruits,
berries, aromatic herbs, roots, or seeds, in distilled spirits or wines
at a distilled spirits plant;
(h) The artificial carbonating of distilled spirits;
(i) In Puerto Rico, the blending of distilled spirits with any
liquors manufactured outside Puerto Rico;
(j) The production of gin by:
(1) Redistillation, over juniper berries and other natural
aromatics or over the extracted oils of such materials, of spirits
distilled at or above 190 degrees of proof that are free from
impurities, including such spirits recovered by redistillation of
imperfect gin spirits; or
(2) Mixing gin with other distilled spirits;
(k) The treatment of gin by:
(1) The addition or abstraction of any substance or material other
than pure water after redistillation in a manner that would change its
class and type designation; or
(2) The addition of any substance or material other than juniper
berries or other natural aromatics or the extracted oils of such
materials, or the addition of pure water, before or during
redistillation, in a manner that would change its class and type
designation; and
(l) The recovery of spirits by redistillation from distilled
spirits products containing other alcoholic ingredients and from
spirits that have previously been entered for deposit. However, no
formula approval is required for spirits redistilled into any type of
neutral spirits other than vodka or for spirits redistilled at less
than 190 degrees of proof that lack the taste, aroma and other
characteristics generally attributed to whisky, brandy, rum, or gin and
that are designated as ``Spirits'' preceded or followed by a word or
phrase descriptive of the material from which distilled. Such spirits
may not be designated ``Spirits Grain'' or ``Grain Spirits'' on any
label.
Sec. 5.194 Adoption of predecessor's formulas.
A successor to a person listed in Sec. 5.191 may adopt a
predecessor's approved formulas by filing an application with the
appropriate TTB officer. The application must include a list of the
formulas for adoption and must identify each formula by formula number,
name of product, and date of approval. The application must clearly
show that the predecessor has authorized the use of the previously
approved formulas by the successor.
[[Page 60670]]
Subpart K--Standards of Fill and Authorized Container Sizes.
Sec. 5.201 General.
No person engaged in business as a distiller, blender, or other
producer, or as an importer or wholesaler, or as a bottler or
warehouseman and bottler, directly or indirectly, or through an
affiliate, may sell or ship or deliver for sale or shipment in
interstate or foreign commerce, or otherwise introduce in interstate or
foreign commerce, or receive therein, or remove from customs custody
for consumption, any distilled spirits in containers, unless the
distilled spirits are bottled in conformity with Sec. Sec. 5.202 and
5.203.
Sec. 5.202 Standard liquor containers.
(a) General. Except as provided in paragraph (d) of this section
and in Sec. 5.205, distilled spirits must be bottled in standard
liquor containers, as defined in this paragraph. A standard liquor
container is a container that is made, formed, and filled in such a way
that it does not mislead purchasers as regards its contents. An
individual carton or other container of a bottle may not be so designed
as to mislead purchasers as to the size of the bottle it contains.
(b) Headspace. A filled liquor container of a capacity of 200
milliliters (6.8 fl. oz.) or more is deemed to mislead the purchaser if
it has a headspace in excess of 8 percent of the total capacity of the
container after closure.
(c) Design. Regardless of the correctness of the stated net
contents, a liquor container is deemed to mislead the purchaser if it
is made and formed in such a way that its actual capacity is
substantially less than the capacity it appears to have upon visual
examination under ordinary conditions of purchase or use.
(d) Exception for distinctive liquor bottles. The provisions of
paragraphs (b) and (c) of this section do not apply to liquor bottles
for which a distinctive liquor bottle approval has been issued pursuant
to Sec. 5.205.
Sec. 5.203 Standards of fill (container sizes).
(a) Authorized standards of fill. The following metric standards of
fill are authorized for distilled spirits, whether domestically bottled
or imported:
(1) Containers other than cans. For containers other than cans
described in paragraph (a)(2) of this section--
(i) 1.75 liters.
(ii) 1.00 liter.
(iii) 750 mL.
(iii) 375 mL.
(iv) 200 mL.
(v) 100 mL.
(vi) 50 mL.
(2) Metal cans. For metal containers that have the general shape
and design of a can, that have a closure that is an integral part of
the container, and that cannot be readily reclosed after opening--
(i) 355 mL.
(ii) 200 mL.
(iii) 100 mL.
(iv) 50 mL.
(b) Spirits bottled using outdated standards. Paragraph (a) of this
section does not apply to:
(1) Imported distilled spirits in the original containers in which
entered into customs custody prior to January 1, 1980 (or prior to July
1, 1989 in the case of distilled spirits imported in 500 mL
containers); or
(2) Imported distilled spirits bottled or packed prior to January
1, 1980 (or prior to July 1, 1989 in the case of distilled spirits in
500 mL containers) and certified as to such in a statement signed by an
official duly authorized by the appropriate foreign government.
Sec. 5.204 Aggregate packaging to meet standard of fill
requirements.
(a) Under the conditions set forth in paragraphs (b) through (f) of
this section, industry members may use aggregate packaging to satisfy a
standard of fill required under Sec. 5.203 of this part. That is,
industry members may bottle distilled spirits in containers that do not
meet a standard of fill, as long as those containers are then packaged
together in a larger container and the entire net contents of the
aggregate package meets a standard of fill. For example, thirty 25-mL
containers may be packaged together to meet the 750 mL standard of
fill. The industry member must submit the actual external container and
a sample of one of the internal containers to TTB upon request by the
appropriate TTB officer as part of the COLA review process.
(b) The distilled spirits in each of the individual internal
containers of the aggregate package must have the same alcohol content.
(c) The external container, as well as each of the individual
internal containers, must be labeled with all of the mandatory label
information required by this part and parts 16 and 19 of this chapter;
however, an appropriate standard of fill is not required for internal
containers.
(d) The external container must include a net contents statement
that indicates how the aggregate package equals an authorized standard
of fill (for example, ``750 mL = 30 containers of 25 mL each'').
Internal containers must include a net contents statement in accordance
with Sec. 5.68 of this part.
(e) The external container must be shrink-wrapped, boxed, or sealed
in such a manner that the smaller containers cannot be easily removed.
(f) Each of the smaller containers must be labeled ``NOT FOR
INDIVIDUAL SALE.''
Sec. 5.205 Distinctive liquor bottle approval.
(a) General. A bottler or importer of distilled spirits in
distinctive liquor bottles may apply for a distinctive liquor bottle
approval from the appropriate TTB officer. The distinctive liquor
bottle approval will provide an exemption only from those requirements
that are specified in paragraph (b) of this section. A distinctive
liquor bottle is a container that is not the customary shape and that
may obscure the net contents of the distilled spirits.
(b) Exemptions provided by the distinctive liquor bottle approval.
The distinctive liquor bottle approval issued pursuant to this section
will provide that:
(1) The provisions of Sec. 5.202(b) and (c) do not apply to the
liquor containers for which the distinctive liquor bottle approval has
been issued; and
(2) The information required to appear in the same field of vision
pursuant to Sec. 5.63(a) may appear elsewhere on a distinctive liquor
bottle for which the distinctive liquor bottle approval has been
issued, if the design of the container precludes the presentation of
all mandatory information in the same field of vision.
(c) How to apply. A bottler or importer of distilled spirits in
distinctive liquor bottles may apply for a distinctive liquor bottle
approval as part of the application for a COLA.
Subpart L--Recordkeeping and Substantiation Requirements
Sec. 5.211 Recordkeeping requirements--certificates.
(a) Certificates of label approval (COLAs). Upon request by the
appropriate TTB officer, a bottler or importer must provide evidence
that a container of distilled spirits is covered by a certificate of
label approval (COLA) or a certificate of exemption. This requirement
may be satisfied by providing original COLAs, photocopies or electronic
copies of COLAs, or records showing the TTB Identification number
assigned to the approved certificate. TTB may request such information
for a period of five years from the date that the products covered by
the COLAs were removed from the bottler's premises or from customs
custody, as applicable.
[[Page 60671]]
(b) Labels with revisions. Where labels on containers reflect
revisions to the approved label that have been made in compliance with
allowable revisions authorized by TTB Form 5100.31 or otherwise
authorized by TTB, the bottler or importer must, upon request by the
appropriate TTB officer, identify the COLA covering the product if the
product is required to be covered by a COLA. TTB may request such
information for a period of five years from the date that the products
covered by the COLAs were removed from the bottler's premises or from
customs custody, as applicable.
(c) Other recordkeeping requirements under this part. See
Sec. Sec. 5.26, 5.30, and 5.192(b) for other recordkeeping
requirements under this part.
Sec. 5.212 Substantiation requirements.
(a) Application. The substantiation requirements of this section
apply to any claim made on any label or container subject to the
requirements of this part.
(b) Reasonable basis in fact. All claims, whether implicit or
explicit, must have a reasonable basis in fact. Claims that contain
express or implied statements regarding the amount of support for the
claim (such as ``tests prove,'' or ``studies show'') must have the
level of substantiation that is claimed. Any labeling claim that does
not have a reasonable basis in fact, or cannot be adequately
substantiated upon the request of the appropriate TTB officer, will be
considered misleading within the meaning of Sec. 5.122(b)(2).
(c) Evidence that claims are adequately substantiated. The
appropriate TTB officer may request that bottlers and importers provide
evidence that labeling claims are adequately substantiated at any time
within a period of five years from the time the distilled spirits were
removed from the bottling premises or from customs custody, as
applicable.
Subpart M--Penalties and Compromise of Liability
Sec. 5.221 Criminal penalties.
A violation of the labeling provisions of 27 U.S.C. 205(e) is
punishable as a misdemeanor. See 27 U.S.C. 207 for the statutory
provisions relating to criminal penalties, consent decrees, and
injunctions.
Sec. 5.222 Conditions of basic permit.
A basic permit is conditioned upon compliance with the requirements
of 27 U.S.C. 205, including the labeling provisions of this part. A
willful violation of the conditions of a basic permit provides grounds
for the revocation or suspension of the permit, as applicable, as set
forth in part 1 of this chapter.
Sec. 5.223 Compromise.
Pursuant to 27 U.S.C. 207, the appropriate TTB officer is
authorized, with respect to any violation of 27 U.S.C. 205, to
compromise the liability arising with respect to such violation upon
payment of a sum not in excess of $500 for each offense, to be
collected by the appropriate TTB officer and to be paid into the
Treasury as miscellaneous receipts.
Subpart N--Paperwork Reduction Act
Sec. 5.231 OMB control numbers assigned under the Paperwork
Reduction Act.
(a) Purpose. This subpart displays the control numbers assigned to
information collection requirements in this part by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995,
Public Law 104-13.
(b) Chart. The following chart identifies each section in this part
that contains an information collection requirement and the OMB control
number that is assigned to that information collection requirement.
------------------------------------------------------------------------
Section where contained Current OMB Control No.
------------------------------------------------------------------------
5.21...................................... 1513-0020.
5.22...................................... 1513-0020,
1513-0111.
5.23...................................... 1513-0020,
1513-0111.
5.24...................................... 1513-0020,
1513-0064,
1513-0122.
5.25...................................... 1513-0020,
1513-0111,
1513-0122.
5.27...................................... 1513-0020,
1513-0122.
5.28...................................... 1513-0122.
5.30...................................... New control number.
5.62...................................... 1513-0087.
5.63...................................... 1513-0084,
1513-0087.
5.81...................................... 1513-0087.
5.82...................................... 1513-0087,
1513-0121.
5.83...................................... 1513-0087,
1513-0121.
5.84...................................... 1513-0087.
5.85...................................... 1513-0087.
5.86...................................... 1513-0087.
5.87...................................... 1513-0087.
5.88...................................... 1513-0087.
5.89...................................... 1513-0087.
5.90...................................... 1513-0087.
5.121..................................... 1513-0087.
5.122..................................... 1513-0087.
5.123..................................... 1513-0087.
5.124..................................... 1513-0087.
5.125..................................... 1513-0087.
5.126..................................... 1513-0087.
5.127..................................... 1513-0087.
5.128..................................... 1513-0087.
5.129..................................... 1513-0087.
5.130..................................... 1513-0087.
5.192..................................... 1513-0122,
1513-0046.
5.193..................................... 1513-0122,
1513-0046.
5.194..................................... 1513-0122.
5.203..................................... 1513-0064.
5.211..................................... New control number.
5.212..................................... New control number.
------------------------------------------------------------------------
0
3. Revise part 7 to read as follows:
PART 7--LABELING OF MALT BEVERAGES
Subpart A--General Provisions
Sec.
7.0 Scope.
7.1 Definitions.
7.2 Territorial extent.
7.3 General requirements and prohibitions under the FAA Act.
7.4 Jurisdictional limits of the FAA Act.
7.5 Ingredients and processes.
7.6 Brewery products not covered by this part.
7.7 Other TTB labeling regulations that apply to malt beverages.
7.8 Malt beverages for export.
7.9 Compliance with Federal and State requirements.
7.10 Other related regulations.
7.11 Forms.
7.12 Delegations of the Administrator.
Subpart B--Certificates of Label Approval
Requirements for Malt Beverages Bottled in the United States
7.21 Requirement for certificates of label approval (COLAs) for malt
beverages bottled in the United States.
7.22 Rules regarding certificates of label approval (COLAs) for malt
beverages bottled in the United States.
7.23 [Reserved]
Requirements for Malt Beverages Imported in Containers
7.24 Certificates of label approval (COLAs) for malt beverages
imported in containers.
7.25 Rules regarding certificates of label approval (COLAs) for malt
beverages imported in containers.
Administrative Rules
7.27 Presenting certificates of label approval (COLAs) to Government
officials.
7.28 Formulas, samples, and documentation.
7.29 Personalized labels.
Subpart C--Alteration of Labels, Relabeling, and Adding Information to
Containers
7.41 Alteration of labels.
7.42 Authorized relabeling activities by brewers and importers.
[[Page 60672]]
7.43 Relabeling activities that require separate written
authorization from TTB.
7.44 Adding a label or other information to a container that
identifies the wholesaler, retailer, or consumer.
Subpart D--Label Standards
7.51 Firmly affixed requirements.
7.52 Legibility and other requirements for mandatory information on
labels.
7.53 Type size of mandatory information.
7.54 Visibility of mandatory information.
7.55 Language requirements.
7.56 Additional information.
Subpart E--Mandatory Label Information
7.61 What constitutes a label for purposes of mandatory information.
7.62 Packaging (cartons, coverings, and cases).
7.63 Mandatory label information.
7.64 Brand name.
7.65 Alcohol content.
7.66 Name and address for domestically bottled malt beverages that
were wholly fermented in the United States.
7.67 Name and address for domestically bottled malt beverages that
were bottled after importation.
7.68 Name and address for malt beverages that are imported in a
container.
7.69 Country of origin.
7.70 Net contents.
Subpart F--Restricted Labeling Statements
7.81 General.
Food Allergen Labeling
7.82 Voluntary disclosure of major food allergens.
7.83 Petitions for exemption from major food allergen labeling.
Production and Other Claims
7.84 Use of the term ``organic.''
7.85 Environmental, sustainability, and similar statements.
7.86 [Reserved].
7.87 Use of the term ``draft.''
Subpart G--Prohibited Labeling Practices
7.101 General.
7.102 False or untrue statements.
7.103 Obscene or indecent depictions.
Subpart H--Labeling Practices That Are Prohibited if They Are
Misleading
7.121 General.
7.122 Misleading statements or representations.
7.123 Guarantees.
7.124 Disparaging statements.
7.125 Tests or analyses.
7.126 Depictions of government symbols.
7.127 Depictions simulating government stamps or relating to
supervision.
7.128 Claims related to distilled spirits or wines.
7.129 Health-related statements.
7.130 Appearance of endorsement.
7.131 The word ``bonded'' and similar terms
7.132 Strength claims.
Subpart I--Classes and Types of Malt Beverages
7.141 Class and type.
7.142 Class designations.
7.143 Class and type--special rules.
7.144 Malt beverages fermented or flavored with certain traditional
ingredients.
7.145 Malt beverages containing less than 0.5 percent alcohol by
volume.
7.146 Geographical names.
7.147 Statement of composition.
Subparts J-K--Reserved
Subpart L--Recordkeeping and Substantiation Requirements
7.211 Recordkeeping requirements-certificates.
7.212 Substantiation requirements.
Subpart M--Penalties and Compromise of Liability
7.221 Criminal penalties.
7.222 Conditions of basic permit.
7.223 Compromise.
Subpart N--Paperwork Reduction Act
7.231 OMB control numbers assigned under the Paperwork Reduction
Act.
Authority: 27 U.S.C. 205 and 207.
Sec. 7.07.0 Scope.
This part sets forth requirements that apply to the labeling and
packaging of malt beverages in containers, including requirements for
label approval and rules regarding mandatory, regulated, and prohibited
labeling statements.
Subpart A--General Provisions
Sec. 7.17.1 Definitions.
When used in this part and on forms prescribed under this part, the
following terms have the meaning assigned to them in this section,
unless the terms appear in a context that requires a different meaning.
Any other term defined in the Federal Alcohol Administration Act (FAA
Act) and used in this part has the same meaning assigned to it by the
FAA Act.
Administrator. The Administrator, Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
Appropriate TTB officer. An officer or employee of the Alcohol and
Tobacco Tax and Trade Bureau (TTB) authorized to perform any function
relating to the administration or enforcement of this part by the
current version of TTB Order 1135.7, Delegation of the Administrator's
Authorities in 27 CFR part 7, Labeling of Malt Beverages.
Bottler. Any brewer or wholesaler who places malt beverages in
containers.
Brand name. The name under which a malt beverage or a line of malt
beverages is sold.
Certificate holder. The permittee or brewer whose name, address,
and basic permit number, plant registry number, or brewer's notice
number appears on an approved TTB Form 5100.31.
Certificate of exemption from label approval. A certificate issued
on TTB Form 5100.31, which authorizes the bottling of wine or distilled
spirits, under the condition that the product will under no
circumstances be sold, offered for sale, shipped, delivered for
shipment, or otherwise introduced by the applicant, directly or
indirectly, into interstate or foreign commerce.
Certificate of label approval (COLA). A certificate issued on TTB
Form 5100.31 that authorizes the bottling of wine, distilled spirits,
and malt beverages, or the removal of bottled wine, distilled spirits,
and malt beverages from customs custody for introduction into commerce,
as long as the product bears labels identical to the labels appearing
on the face of the certificate, or labels with changes authorized by
TTB on the certificate or otherwise.
Container. Any can, bottle, box with an internal bladder, cask,
keg, barrel or other closed receptacle, in any size or material, that
is for use in the sale of malt beverages at retail.
Customs officer. An officer of U.S. Customs and Border Protection
(CBP) or any agent or other person authorized by law to perform the
duties of such an officer.
Distinctive or fanciful name. A descriptive name or phrase chosen
to identify a malt beverage product on the label. It does not include a
brand name, class or type designation, statement of composition, or
designation known to the trade or consumers.
FAA Act. The Federal Alcohol Administration Act.
Gallon. A U.S. gallon of 231 cubic inches of malt beverages at 39.1
degrees Fahrenheit (4 degrees Celsius). All other liquid measures used
are subdivisions of the gallon as defined.
Interstate or foreign commerce. Commerce between any State and any
place outside of that State or commerce within the District of Columbia
or commerce between points within the same State but through any place
outside of that State.
Keg collar. A disk that is pushed down over the keg's bung or tap
cover.
Malt beverage. A beverage made by the alcoholic fermentation of an
infusion or decoction, or combination of both, in potable brewing
water, of malted barley with hops, or their parts, or their products,
and with or without other malted cereals, and with or without the
addition of unmalted or prepared cereals, other carbohydrates or
products prepared therefrom, and with or without the addition of carbon
dioxide, and with or without other wholesome products suitable for
human
[[Page 60673]]
food consumption. See Sec. 7.5 for standards applying to the use of
processing methods and flavors in malt beverage production.
Net contents. The amount, by volume, of a malt beverage held in a
container.
Person. Any individual, corporation, partnership, association,
joint-stock company, business trust, limited liability company, or
other form of business enterprise, including a receiver, trustee, or
liquidating agent and including an officer or employee of any agency of
a State or political subdivision of a State.
State. One of the 50 States of the United States, the District of
Columbia, or the Commonwealth of Puerto Rico.
Tap cover. A cap, usually made of plastic, that fits over the top
of the tap (or bung) of a keg.
TTB. The Alcohol and Tobacco Tax and Trade Bureau of the Department
of the Treasury.
United States (U.S.). The 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
Sec. 7.27.2 Territorial extent.
The provisions of this part apply to the 50 states, the District of
Columbia, and the Commonwealth of Puerto Rico.
Sec. 7.37.3 General requirements and prohibitions under the FAA Act.
(a) Certificates of label approval (COLAs). Subject to the
requirements and exceptions set forth in the regulations in subpart B
of this part, any brewer or wholesaler who bottles malt beverages, and
any person who removes malt beverages in containers from customs
custody for sale or any other commercial purpose, is required to first
obtain from TTB a COLA covering the label(s) on each container.
(b) Alteration, mutilation, destruction, obliteration, or removal
of labels. Subject to the requirements and exceptions set forth in the
regulations in subpart C of this part, it is unlawful to alter,
mutilate, destroy, obliterate, or remove labels on malt beverage
containers. This prohibition applies to any person, including
retailers, holding malt beverages for sale in interstate or foreign
commerce or any person holding malt beverages for sale after shipment
in interstate or foreign commerce.
(c) Labeling requirements for malt beverages. Subject to the
jurisdictional limits of the FAA Act, as set forth in Sec. 7.4, it is
unlawful for any person engaged in business as a brewer, wholesaler, or
importer of malt beverages, directly or indirectly, or through an
affiliate, to sell or ship, or deliver for sale or shipment, or
otherwise introduce or receive in interstate or foreign commerce, or
remove from customs custody, any malt beverages in containers unless
the malt beverages are bottled in containers and the containers are
marked, branded, and labeled in conformity with the regulations in this
part.
(d) Labeled in accordance with this part. In order to be labeled in
accordance with the regulations in this part, a container of malt
beverages must be in compliance with the following requirements:
(1) It must bear one or more labels meeting the standards for
``labels'' set forth in subpart D of this part;
(2) One or more of the labels on the container must include the
mandatory information set forth in subpart E of this part;
(3) Claims on the label(s), containers, and packaging (as defined
in Sec. 7.62) must comply with the rules for regulated label
statements, as applicable, set forth in subpart F of this part;
(4) Statements or any other representations on any malt beverage
label, container, or packaging (as defined in Sec. Sec. 7.81(b) and
7.121(b)) may not violate the regulations in subparts G and H of this
part regarding certain practices on labeling of malt beverages;
(5) The class and type designation on the label(s), as well as any
designation appearing on containers or packaging, must comply with the
standards for classes and types set forth in subpart I of this part;
and
(6) The malt beverage must not be adulterated within the meaning of
the Federal Food, Drug, and Cosmetic Act.
Sec. 7.47.4 Jurisdictional limits of the FAA Act.
(a) Malt beverages sold in interstate or foreign commerce--(1)
General. The labeling provisions of this part apply to malt beverages
sold or shipped or delivered for shipment, or otherwise introduced into
or received in any State from any place outside thereof, only to the
extent that the laws or regulations of such State impose requirements
similar to the requirements of the regulations in this part, with
respect to the labels and labeling of malt beverages sold within that
State.
(2) Similar State law. For purposes of this section, a ``similar''
State law may be found in State laws or regulations that apply
specifically to malt beverages or in State laws or regulations that
provide general labeling requirements that are not specific to malt
beverages. In order to be ``similar'' to the Federal requirements, the
State requirements need not be identical to the Federal requirements.
Nonetheless, if the label in question does not violate the laws or
regulations of the State or States into which the brewer, wholesaler,
or importer is shipping the malt beverages, it does not violate this
part.
(b) Malt beverages not sold in interstate or foreign commerce. The
regulations in this part do not apply to domestically bottled malt
beverages that are not and will not be sold, shipped, delivered for
sale or shipment, or otherwise introduced in interstate or foreign
commerce.
Sec. 7.57.5 Ingredients and processes.
(a) Use of nonbeverage flavors and other nonbeverage ingredients
containing alcohol. (1) Nonbeverage flavors and other nonbeverage
ingredients containing alcohol may be used in producing a malt beverage
(sometimes referred to as a ``flavored malt beverage''). Except as
provided in paragraph (a)(2) of this section, no more than 49 percent
of the overall alcohol content (determined without regard to any
tolerance otherwise allowed by this part) of the finished product may
be derived from the addition of nonbeverage flavors and other
nonbeverage ingredients containing alcohol. For example, a finished
malt beverage that contains 5.0 percent alcohol by volume must derive a
minimum of 2.55 percent alcohol by volume from the fermentation of
barley malt and other materials and may derive not more than 2.45
percent alcohol by volume from the addition of nonbeverage flavors and
other nonbeverage ingredients containing alcohol.
(2) In the case of malt beverages with an alcohol content of more
than 6 percent by volume (determined without regard to any tolerance
otherwise allowed by this part), no more than 1.5 percent of the volume
of the malt beverage may consist of alcohol derived from added
nonbeverage flavors and other nonbeverage ingredients containing
alcohol.
(b) Processing. Malt beverages may be filtered or otherwise
processed in order to remove color, taste, aroma, bitterness, or other
characteristics derived from fermentation.
Sec. 7.67.6 Brewery products not covered by this part.
Certain fermented products that are regulated as ``beer'' under the
Internal Revenue Code (IRC) do not fall within the definition of a
``malt beverage'' under the FAA Act and thus are not subject to this
part. See Sec. 7.7 for related TTB regulations that may apply to these
products. See Sec. Sec. 25.11 and 27.11 of this
[[Page 60674]]
chapter for the definition of ``beer'' under the IRC.
(a) Sak[eacute] and similar products. Sak[eacute] and similar
products (including products that fall within the definition of
``beer'' under parts 25 and 27 of this chapter) that fall within the
definition of a ``wine'' under the FAA Act are covered by the labeling
regulations for wine in 27 CFR part 4.
(b) Other beers not made with both malted barley and hops. The
regulations in this part do not cover beer products that are not made
with both malted barley and hops, or their parts or their products, or
that do not fall within the definition of a ``malt beverage'' under
Sec. 7.1 for any other reason. Bottlers and importers of alcohol
beverages that do not fall within the definition of malt beverages,
wine, or distilled spirits under the FAA Act should refer to the
applicable labeling regulations for foods issued by the U.S. Food and
Drug Administration. See 21 CFR part 101.
Sec. 7.77.7 Other TTB labeling regulations that apply to malt
beverages.
In addition to the regulations in this part, malt beverages must
also comply with the following TTB labeling regulations:
(a) Health warning statement. Alcoholic beverages, including malt
beverages, that contain at least one-half of one percent alcohol by
volume, must be labeled with a health warning statement in accordance
with the Alcoholic Beverage Labeling Act of 1988 (ABLA). The
regulations implementing the ABLA are contained in 27 CFR part 16.
(b) Internal Revenue Code requirements. The labeling and marking
requirements for beer under the Internal Revenue Code are found in 27
CFR part 25, subpart J (for domestic breweries) and 27 CFR part 27,
subpart E (for importers).
Sec. 7.87.8 Malt beverages for export.
Malt beverages that are exported in bond without payment of tax
directly from a brewery or from customs custody are not subject to this
part. For purposes of this section, direct exportation in bond does not
include exportation after malt beverages have been removed for
consumption or sale in the United States, with appropriate tax
determination or payment.
Sec. 7.97.9 Compliance with Federal and State requirements.
(a) General. Compliance with the requirements of this part relating
to the labeling and bottling of malt beverages does not relieve
industry members from responsibility for complying with other
applicable Federal and State requirements, including but not limited to
those highlighted in paragraphs (b) and (c) of this section.
(b) Ingredient safety. While it remains the responsibility of the
industry member to ensure that any ingredient used in production of
malt beverages complies fully with all applicable U.S. Food and Drug
Administration (FDA) regulations pertaining to the safety of food
ingredients and additives, the appropriate TTB officer may at any time
request documentation to establish such compliance.
(c) Containers. While it remains the responsibility of the industry
member to ensure that containers are made of suitable materials that
comply with all applicable FDA health and safety regulations for the
packaging of beverages for consumption, the appropriate TTB officer may
at any time request documentation to establish such compliance.
Sec. 7.10 Other related regulations.
(a) TTB regulations. Other TTB regulations that relate to malt
beverages are listed in paragrpahs (a)(1) through (9) of this section:
(1) 27 CFR part 1--Basic Permit Requirements Under the Federal
Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and
Wine, Bulk Sales and Bottling of Distilled Spirits;
(2) 27 CFR part 13--Labeling Proceedings;
(3) 27 CFR part 14--Advertising of Alcohol Beverage Products;
(4) 27 CFR part 16--Alcoholic Beverage Health Warning Statement;
(5) 27 CFR part 25--Beer;
(6) 27 CFR part 26--Liquors and Articles from Puerto Rico and the
Virgin Islands;
(7) 27 CFR part 27--Importation of Distilled Spirits, Wines, and
Beer;
(8) 27 CFR part 28--Exportation of Alcohol; and
(9) 27 CFR part 71--Rules of Practice in Permit Proceedings.
(b) Other Federal regulations. The regulations listed in paragraphs
(b)(1) through (9) of this section issued by other Federal agencies
also may apply:
(1) 7 CFR part 205--National Organic Program;
(2) 19 CFR part 11--Packing and Stamping; Marking;
(3) 19 CFR part 102--Rules of Origin;
(4) 19 CFR part 134--Country of Origin Marking;
(5) 21 CFR part 1--General Enforcement Provisions, Subpart I, Prior
Notice of Imported Food;
(6) 21 CFR parts 70-82, which pertain to food and color additives;
(7) 21 CFR part 101--Food Labeling;
(8) 21 CFR part 110--Current Good Manufacturing Practice in
Manufacturing, Packing, or Holding Human Food; and
(9) 21 CFR parts 170-189, which pertain to food additives and
secondary direct food additives for human consumption.
Sec. 7.11 Forms.
(a) General. TTB prescribes and makes available all forms required
by this part. Any person completing a form must provide all of the
information required by each form as indicated by the headings on the
form and the instructions for the form. Each form must be filed in
accordance with this part and the instructions for the form.
(b) Electronically filing forms. The forms required by this part
can be filed electronically by using TTB's online filing systems: COLAs
Online and Formulas Online. Anyone who intends to use one of these
online filing systems must first register to use the system by
accessing the TTB website at https://www.ttb.gov.
(c) Obtaining paper forms. Forms required by this part are
available for printing through the TTB website (https://www.ttb.gov) or
by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau,
National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH
45202.
Sec. 7.12 Delegations of the Administrator.
Most of the regulatory authorities of the Administrator contained
in this part are delegated to ``appropriate TTB officers.'' To find out
which officers have been delegated specific authorities, see the
current version of TTB Order 1135.7, Delegation of the Administrator's
Authorities in 27 CFR part 7, Labeling of Malt Beverages. Copies of
this order can be obtained by accessing the TTB website (https://www.ttb.gov) or by mailing a request to the Alcohol and Tobacco Tax and
Trade Bureau, National Revenue Center, 550 Main Street, Room 8002,
Cincinnati, OH 45202.
Subpart B--Certificates of Label Approval
Requirements for Malt Beverages Bottled in the United States
Sec. 7.21 Requirement for certificates of label approval (COLAs) for
malt beverages bottled in the United States.
(a) COLA requirement. Subject to the requirements and exceptions
set forth in paragraphs (b) and (c) of this section, a brewer or
wholesaler bottling malt beverages must obtain a COLA covering
[[Page 60675]]
the malt beverages from TTB prior to bottling the malt beverages or
removing the malt beverages from the premises where they were bottled.
(b) Malt beverages shipped or sold in interstate commerce. Persons
bottling malt beverages (other than malt beverages in customs custody)
for shipment, or delivery for sale or shipment, into a State (from
outside of that State) are required to obtain a COLA covering those
malt beverages only if the laws or regulations of the State require
that all malt beverages sold or otherwise disposed of in such State be
labeled in conformity with the requirements of subparts D through I of
this part. This requirement applies when the State has either adopted
subparts D through I of this part in their entireties or has adopted
requirements identical to those set forth in subparts D through I of
this part. In accordance with Sec. Sec. 7.3 and 7.4, malt beverages
that are not subject to the COLA requirements of this section may still
be subject to the substantive labeling provisions of subparts D through
I of this part to the extent that the State into which the malt
beverages are being shipped has similar State laws or regulations.
(c) Products not shipped or sold in interstate commerce. Persons
bottling malt beverages that will not be shipped or delivered for sale
or shipment in interstate or foreign commerce are not required to
obtain a COLA or a certificate of exemption from label approval. (Note:
A certificate of exemption from label approval is a certificate issued
by TTB to cover a wine or distilled spirits product that will not be
sold, offered for sale, shipped, delivered for shipment, or otherwise
introduced, in interstate or foreign commerce.)
Sec. 7.22 Rules regarding certificates of label approval (COLAs) for
malt beverages bottled in the United States.
(a) What a COLA authorizes. An approved TTB Form 5100.31 authorizes
the bottling of malt beverages covered by the COLA, as long as the
container bears labels identical to the labels appearing on the face of
the COLA, or labels with changes authorized by TTB on the COLA or
otherwise. The list of allowable changes can be found on the TTB
website at https://www.ttb.gov.
(b) What a COLA does not do. Among other things, the issuance of a
COLA does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from its responsibility to
ensure that all ingredients used in the production of the malt beverage
comply with applicable requirements of the U.S. Food and Drug
Administration with regard to ingredient safety; or
(3) Relieve the certificate holder from liability for violations of
the FAA Act, the Alcoholic Beverage Labeling Act, the Internal Revenue
Code, or related regulations and rulings.
(i) The issuance of a COLA does not mean that TTB has verified the
accuracy of any representations or claims made on the label with
respect to the product in the container. It is the responsibility of
the applicant to ensure that all information on the application is true
and correct, and that all labeling representations and claims are
truthful, accurate, and not misleading with respect to the product in
the container.
(ii) A malt beverage may be mislabeled even when the label is
covered by a COLA. For example, if the label on the container contains
representations that are false or misleading when applied to the
product in the container, the malt beverage is not labeled in
accordance with the regulations in this part, even if it is covered by
a COLA.
(c) When to obtain a COLA. The COLA must be obtained prior to
bottling. No brewer or wholesaler may bottle malt beverages or remove
malt beverages from the premises where bottled unless a COLA has been
obtained.
(d) Application for a COLA. The bottler may apply for a COLA by
submitting an application to TTB on Form 5100.31, in accordance with
the instructions on the form. The bottler may apply for a COLA either
electronically by accessing TTB's online system, COLAs Online, at
https://www.ttb.gov, or by submitting the paper form. For procedures
regarding the issuance of COLAs, see part 13 of this chapter.
Sec. 7.23 [Reserved]
Requirements for Malt Beverages Imported in Containers
Sec. 7.24 Certificates of label approval (COLAs) for malt beverages
imported in containers.
(a) Application requirement. Any person removing malt beverages in
containers from customs custody for consumption must first apply for
and obtain a COLA covering the malt beverages from the appropriate TTB
officer.
(b) Release of malt beverages from customs custody. Malt beverages,
imported in containers, are not eligible for release from customs
custody for consumption, and no person may remove such malt beverages
from customs custody for consumption, unless the person removing the
malt beverages has obtained and is in possession of a COLA covering the
malt beverages.
(c) Filing requirements. If filing electronically, the importer
must file with U.S Customs and Border Protection (CBP), at the time of
filing the customs entry, the TTB-assigned identification number of the
valid COLA that corresponds to the label on the brand or lot of malt
beverages being imported. If the importer is not filing electronically,
the importer must provide a copy of the COLA to CBP at the time of
entry. In addition, the importer must provide a copy of the applicable
COLA, and proof of the certificate holder's authorization if
applicable, upon request by the appropriate TTB officer or a customs
officer.
(d) Scope of this section. The COLA requirement imposed by this
section applies only to malt beverages that are removed for sale or any
other commercial purpose. See 27 CFR 27.49, 27.74, and 27.75 for
labeling exemptions applicable to certain imported samples of malt
beverages.
(e) Relabeling in customs custody. Containers of malt beverages in
customs custody that are required to be covered by a COLA but are not
labeled in conformity with a COLA must be relabeled, under the
supervision and direction of customs officers, prior to their removal
from customs custody for consumption.
(f) State law. Paragraph (a) through (c) of this section apply only
if the laws or regulations of the State in which the malt beverages are
withdrawn require that all malt beverages sold or otherwise disposed of
in such State be labeled in conformity with the requirements of
subparts D through I of this part. A State requires that malt beverages
be labeled in conformity with the requirements of subparts D through I
of this part when the State has either adopted subparts D through I of
this part in their entireties or has adopted requirements identical to
those set forth in subparts D through I in this part. In accordance
with Sec. Sec. 7.3 and 7.4, malt beverages that are not subject to the
COLA requirements of this section may still be subject to the
substantive labeling provisions of subparts D through I of this part to
the extent that the State into which the malt beverages are being
shipped has similar State law or regulation.
Sec. 7.25 Rules regarding certificates of label approval (COLAs) for
malt beverages imported in containers.
(a) What a COLA authorizes. An approved TTB Form 5100.31 authorizes
[[Page 60676]]
the use of the labels covered by the COLA on containers of malt
beverages, as long as the container bears labels identical to the
labels appearing on the face of the COLA, or labels with changes
authorized by the form or otherwise authorized by TTB.
(b) What a COLA does not do. Among other things, the issuance of a
COLA does not:
(1) Confer trademark protection;
(2) Relieve the certificate holder from its responsibility to
ensure that all ingredients used in the production of the malt beverage
comply with applicable requirements of the U.S. Food and Drug
Administration with regard to ingredient safety; or
(3) Relieve the certificate holder from liability for violations of
the FAA Act, the Alcoholic Beverage Labeling Act, the Internal Revenue
Code, or related regulations and rulings.
(i) The issuance of a COLA does not mean that TTB has verified the
accuracy of any representations or claims made on the label with
respect to the product in the container. It is the responsibility of
the applicant to ensure that all information on the application is true
and correct and that all labeling representations and claims are
truthful, accurate, and not misleading with respect to the product in
the container.
(ii) Malt beverages may be mislabeled even when the label is
covered by a COLA. For example, if the label on the container contains
representations that are false or misleading when applied to the
product in the container the malt beverage is not labeled in accordance
with the regulations in this part, even if it is covered by a COLA.
(c) When to obtain a COLA. The COLA must be obtained prior to the
removal of malt beverages in containers from customs custody for
consumption.
(d) Application for a COLA. The person responsible for the
importation of malt beverages must obtain approval of the labels by
submitting an application to TTB on Form 5100.31. A person may apply
for a COLA either electronically by accessing TTB's online system,
COLAs Online, at TTB's website (https://www.ttb.gov) or by submitting
the paper form. For procedures regarding the issuance of COLAs, see
part 13 of this chapter.
Administrative Rules
Sec. 7.27 Presenting certificates of label approval (COLAs) to
Government officials.
A certificate holder must present the original or a paper or
electronic copy of the appropriate COLA upon the request of any duly
authorized representative of the United States Government.
Sec. 7.28 Formulas, samples, and documentation.
(a) Prior to or in conjunction with the review of an application
for a certificate of label approval (COLA) on TTB Form 5100.31, the
appropriate TTB officer may require a bottler or importer to submit a
formula, the results of laboratory testing of the malt beverage, or a
sample of any malt beverage or ingredients used in producing a malt
beverage. The appropriate TTB officer also may request such information
after the issuance of such COLA or in connection with any malt beverage
that is required to be covered by a COLA. A formula may be filed
electronically by using Formulas Online, or it may be submitted on
paper on TTB Form 5100.51. See Sec. 7.11 for more information on forms
and Formulas Online.
(b) Upon request of the appropriate TTB officer, a bottler or
importer must submit a full and accurate statement of the contents of
any container to which labels are to be or have been affixed, as well
as any other documentation on any issue pertaining to whether the malt
beverages are labeled in accordance with this part. TTB may also
request such information after the issuance of such a COLA, or in
connection with any malt beverage that is required to be covered by a
COLA.
Sec. 7.29 Personalized labels.
(a) General. Applicants for label approval may obtain permission
from TTB to make certain changes in order to personalize labels without
having to resubmit labels for TTB approval. Personalized labels may
contain a personal message, picture, or other artwork that is specific
to the consumer who is purchasing the product. For example, a brewer
may offer individual or corporate customers labels that commemorate an
event such as a wedding or grand opening.
(b) Application. Any person who intends to offer personalized
labels must submit a template for the personalized label with the
application for label approval, and must note on the application a
description of the specific personalized information that may change.
(c) Approval of personalized label. If the application complies
with the regulations, TTB will issue a certificate of label approval
(COLA) with a qualification allowing the personalization of labels. The
qualification will allow the certificate holder to add or change items
on the personalized label such as salutations, names, graphics,
artwork, congratulatory dates and names, or event dates without
applying for a new COLA. All of these items on personalized labels must
comply with the regulations of this part.
(d) Changes not allowed to personalized labels. Approval of an
application to personalize labels does not authorize the addition of
any information that discusses either the alcohol beverage or
characteristics of the alcohol beverage or that is inconsistent with or
in violation of the provisions of this part or any other applicable
provision of law or regulations.
Subpart C--Alteration of Labels, Relabeling, and Adding Information
to Containers
Sec. 7.41 Alteration of labels.
(a) Prohibition. It is unlawful for any person to alter, mutilate,
destroy, obliterate or remove any mark, brand, or label on malt
beverages in containers held for sale in interstate or foreign
commerce, or held for sale after shipment in interstate or foreign
commerce, except as authorized by Sec. 7.42, Sec. 7.43, or Sec.
7.44, or as otherwise authorized by Federal law.
(b) Authorized relabeling. For purposes of the relabeling
activities authorized by this subpart, the term ``relabel'' includes
the alteration, mutilation, destruction, obliteration, or removal of
any existing mark, brand, or label on the container, as well as the
addition of a new label (such as a sticker that adds information about
the product or information engraved on the container) to the container,
and the replacement of a label with a new label bearing identical
information.
(c) Obligation to comply with other requirements. Authorization to
relabel under this subpart in no way authorizes the placement of labels
on containers that do not accurately reflect the brand, bottler,
identity, or other characteristics of the product; nor does it relieve
the person conducting the relabeling operations from any obligation to
comply the regulations in this part and with State or local law, or to
obtain permission from the owner of the brand where otherwise required.
Sec. 7.42 Authorized relabeling activities by brewers and importers.
(a) Relabeling at brewery premises. Brewers may relabel
domestically bottled malt beverages prior to removal from, and after
return to bond at, the brewery premises, with labels covered by a
certificate of label approval (COLA,) without obtaining separate
permission from TTB for the relabeling activity.
(b) Relabeling after removal from brewery premises. Brewers may
relabel
[[Page 60677]]
domestically bottled malt beverages after removal from brewery premises
with labels covered by a COLA, without obtaining separate permission
from TTB for the relabeling activity.
(c) Relabeling in customs custody. Under the supervision of U.S.
customs officers, imported malt beverages in containers in customs
custody may be relabeled without obtaining separate permission from TTB
for the relabeling activity. Such containers must bear labels covered
by a COLA upon their removal from customs custody for consumption. See
Sec. 7.24(b).
(d) Relabeling after removal from customs custody. Imported malt
beverages in containers may be relabeled by the importer thereof after
removal from customs custody without obtaining separate permission from
TTB for the relabeling activity, as long as the labels are covered by a
COLA.
Sec. 7.43 Relabeling activities that require separate written
authorization from TTB.
Any persons holding malt beverages for sale who need to relabel the
containers but are not eligible to obtain a COLA to cover the labels
that they wish to affix to the containers may apply for written
permission for the relabeling of malt beverage containers. The
appropriate TTB officer may permit relabeling of malt beverages in
containers if the facts show that the relabeling is for the purpose of
compliance with the requirements of this part or State law. The written
application must include copies of the original and proposed new
labels; the circumstances of the request, including the reason for
relabeling; the number of containers to be relabeled; the location
where the relabeling will take place; and the name and address of the
person who will be conducting the relabeling operations.
Sec. 7.44 Adding a label or other information to a container that
identifies the wholesaler, retailer, or consumer.
Any label or other information that identifies the wholesaler,
retailer, or consumer of the malt beverage may be added to containers
(by the addition of stickers, engraving, stenciling, etc.) without
prior approval from the appropriate TTB officer and without being
covered by a certificate of label approval. Such information may be
added before or after the containers are removed from brewery premises
or released from customs custody. The information added:
(a) May not violate the provisions of subparts F, G, and H of this
part;
(b) May not contain any reference to the characteristics of the
product; and
(c) May not be added to the container in such a way that it
obscures any other label on the container.
Subpart D--Label Standards
Sec. 7.51 Firmly affixed requirements.
(a) General rule. Except as otherwise provided in paragraph (b) of
this section, any label that is not an integral part of the container
must be affixed to the container in such a way that it cannot be
removed without thorough application of water or other solvents.
(b) Exception for keg labels. A label on a keg with a capacity of
10 gallons or more that is in the form of a keg collar or tap cover is
not required to be firmly affixed, provided that the name of the
bottler of the malt beverage is permanently or semi-permanently stated
on the keg in the form of embossing, engraving, stamping, or through
the use of a sticker or ink jet method. This section in no way affects
the requirements of part 16 of this chapter regarding the mandatory
health warning statement.
Sec. 7.52 Legibility and other requirements for mandatory
information on labels.
(a) Readily legible. Mandatory information on labels must be
readily legible to potential consumers under ordinary conditions.
(b) Separate and apart. Mandatory information on labels, except
brand names, must be separate and apart from any additional
information. This does not preclude the addition of brief optional
phrases of additional information as part of the class or type
designation (such as ``premium malt beverage''), the name and address
statement (such as ``Proudly brewed and bottled by ABC Brewing Co. in
Pittsburgh, PA, for over 30 years''), or other information required by
Sec. 7.63(a) as long as the additional information does not detract
from the prominence of the mandatory information. The statements
required by Sec. 7.63(b) may not include additional information.
(c) Contrasting background. Mandatory information must appear in a
color that contrasts with the background on which it appears, except
that if the net contents or the name and address are blown into a glass
container, they need not be contrasting. The color of the container and
of the malt beverages must be taken into account if the label is
transparent or if mandatory label information is etched, engraved,
sandblasted, or otherwise carved into the surface of the container or
is branded, stenciled, painted, printed, or otherwise directly applied
on to the surface of the container. Examples of acceptable contrasts
are:
(1) Black lettering appearing on a white or cream background; or
(2) White or cream lettering appearing on a black background.
(d) Capitalization. Except for the aspartame statement when
required by Sec. 7.63(b)(4), which must appear in all capital letters,
mandatory information may appear in all capital letters, in all lower
case letters, or in mixed-case using both capital and lower-case
letters.
Sec. 7.53 Type size of mandatory information.
All capital and lowercase letters in statements of mandatory
information on labels must meet the following type size requirements.
(a) Minimum type size--(1) Containers of more than one-half pint.
All mandatory information (including the alcohol content statement)
must be in script, type, or printing that is at least two millimeters
in height.
(2) Containers of one-half pint or less. All mandatory information
(including the alcohol content statement) must be in script, type, or
printing that is at least one millimeter in height.
(b) Maximum type size for alcohol content statement--(1) Containers
of more than 40 fluid ounces. The alcohol content statement may not
appear in script, type, or printing that is more than four millimeters
in height on containers of malt beverages of more than 40 fluid ounces.
(2) Containers of 40 fluid ounces or less. The alcohol content
statement may not appear in script, type, or printing that is more than
three millimeters in height on containers of malt beverages of 40 fluid
ounces or less.
Sec. 7.54 Visibility of mandatory information.
Mandatory information on a label must be readily visible and may
not be covered or obscured in whole or in part. See Sec. 7.62 for
rules regarding packaging of containers (including cartons, coverings,
and cases). See part 14 of this chapter for regulations pertaining to
advertising materials.
Sec. 7.55 Language requirements.
(a) General. Mandatory information must appear in the English
language, with the exception of the brand name and except as provided
in paragraphs (c) and (d) of this section.
(b) Foreign languages. Additional statements in a foreign language,
including translations of mandatory information that appears elsewhere
in English on the label, are allowed on labels and containers as long
as they do not in any way conflict with, or contradict, the
requirements of this part.
[[Page 60678]]
(c) Malt beverages for consumption in the Commonwealth of Puerto
Rico. Mandatory information may be stated solely in the Spanish
language on labels of malt beverages bottled for consumption within the
Commonwealth of Puerto Rico.
(d) Exception for country of origin statements. The country of
origin statement for malt beverages may appear in a language other than
English when allowed by U.S. Customs and Border Protection regulations.
Sec. 7.56 Additional information.
Information (other than mandatory information) that is truthful,
accurate, and specific, and that does not violate subpart F, G, or H of
this part, may appear on labels. Such additional information may not
conflict with, modify, qualify or restrict mandatory information in any
manner.
Subpart E--Mandatory Label Information
Sec. 7.61 What constitutes a label for purposes of mandatory
information.
(a) Label. Certain information, as outlined in Sec. 7.63, must
appear on a label. When used in this part for purposes of determining
where mandatory information must appear, the term ``label'' includes:
(1) Material affixed to the container, whether made of paper,
plastic, film, or other matter;
(2) For purposes of the net contents statement and the name and
address statement only, information blown, embossed, or molded into the
container as part of the process of manufacturing the container;
(3) Information etched, engraved, sandblasted, or otherwise carved
into the surface of the container;
(4) Information branded, stenciled, painted, printed, or otherwise
directly applied on to the surface of the container; and
(5) Information on a keg collar or a tap cover of a keg, only if it
includes mandatory information that is not repeated elsewhere on a
label firmly affixed to the container and only if it meets the
requirements of Sec. 7.51.
(b) Information appearing elsewhere on the container. Information
appearing on the following parts of the container is subject to all of
the restrictions and prohibitions set forth in subparts F, G and H of
this part, but will not satisfy any requirements for mandatory
information that must appear on labels in this part:
(1) Material affixed to, or information appearing on, the bottom
surface of the container;
(2) Caps, corks, or other closures unless authorized to bear
mandatory information by the appropriate TTB officer; and
(3) Foil or heat shrink bottle capsules.
(c) Materials not firmly affixed to the container. Any materials
that accompany the container to the consumer but are not firmly affixed
to the container, including booklets, leaflets, and hang tags, are not
``labels'' for purposes of this part. Such materials are instead
subject to the advertising regulations in part 14 of this chapter.
Sec. 7.62 Packaging (cartons, coverings, and cases).
(a) General. The term ``packaging'' includes any covering, carton,
case, carrier, or other packaging of malt beverage containers used for
sale at retail, but does not include shipping cartons or cases that are
not intended to accompany the container to the consumer.
(b) Prohibition. Any packaging of malt beverage containers may not
contain any statement, design, device, or graphic, pictorial, or
emblematic representation that violates the provisions of subpart F, G,
or H of this part.
(c) Requirements for closed packaging. If containers are enclosed
in closed packaging, including sealed opaque coverings, cartons, cases,
carriers, or other packaging used for sale at retail, such packaging
must bear all mandatory label information required on the label under
Sec. 7.63.
(1) Packaging is considered closed if the consumer must open, rip,
untie, unzip, or otherwise manipulate the package to remove the
container in order to view any of the mandatory information.
(2) Packaging is not considered closed if a consumer could view all
of the mandatory information on the container by merely lifting the
container up, or if the packaging is transparent or designed in a way
that all of the mandatory information can be easily read by the
consumer without having to open, rip, untie, unzip, or otherwise
manipulate the package.
(d) Packaging that is not closed. The following requirements apply
to packaging that is not closed.
(1) The packaging may display any information that is not in
conflict with the label on the container that is inside the packaging.
(2) If the packaging displays a brand name, it must display the
brand name in its entirety. For example, if a brand name is required to
be modified with additional information on the container, the packaging
must also display the same modifying language.
(3) If the packaging displays a class or type designation it must
be identical to the class or type designation appearing on the
container. For example, if the packaging displays a class or type
designation for a specialty product for which a statement of
composition is required on the container, the packaging must include
the statement of composition as well.
(e) Labeling of containers within the packaging. The container
within the packaging is subject to all labeling requirements of this
part, including mandatory labeling information requirements, regardless
of whether the packaging bears such information.
Sec. 7.63 Mandatory label information.
(a) Mandatory information. Malt beverage containers must bear a
label or labels (as defined in Sec. 7.61(a)) containing the following
information:
(1) Brand name, in accordance with Sec. 7.64;
(2) Class, type, or other designation, in accordance with subpart I
of this part;
(3) Alcohol content, in accordance with Sec. 7.65, for malt
beverages that contain any alcohol derived from added nonbeverage
flavors or other added nonbeverage ingredients (other than hops
extract) containing alcohol;
(4) Name and address of the bottler or importer (which may be
blown, embossed, or molded into the container as part of the process of
manufacturing the container), in accordance with Sec. 7.66, Sec.
7.67, or Sec. 7.68 as applicable; and
(5) Net contents (which may be blown, embossed, or molded into the
container as part of the process of manufacturing the container), in
accordance with Sec. 7.70.
(b) Disclosure of certain ingredients. Certain ingredients must be
declared on a label without the inclusion of any additional information
as part of the statement as follows:
(1) FD&C Yellow No. 5. If a malt beverage contains the coloring
material FD&C Yellow No. 5, the label must include a statement to that
effect, such as ``FD&C Yellow No. 5'' or ``Contains FD&C Yellow No.
5.''
(2) Cochineal extract or carmine. If a malt beverage contains the
color additive cochineal extract or the color additive carmine, the
label must include a statement to that effect, using the respective
common or usual name (such as, ``contains cochineal extract'' or
``contains carmine''). This requirement applies to labels when either
of the coloring materials is used in a malt beverage that is removed
from bottling
[[Page 60679]]
premises or from customs custody on or after April 16, 2013.
(3) Sulfites. If a malt beverage contains 10 or more parts per
million of sulfur dioxide or other sulfiting agent(s) measured as total
sulfur dioxide, the label must include a statement to that effect.
Examples of acceptable statements are ``Contains sulfites'' or
``Contains (a) sulfiting agent(s)'' or a statement identifying the
specific sulfiting agent. The alternative terms ``sulphites'' or
``sulphiting'' may be used.
(4) Aspartame. If the malt beverage contains aspartame, the label
must include the following statement, in capital letters, separate and
apart from all other information: ``PHENYLKETONURICS: CONTAINS
PHENYLALANINE.''
Sec. 7.64 Brand name.
(a) Requirement. The malt beverage label must include a brand name.
If the malt beverage is not sold under a brand name, then the name of
the bottler or importer, as applicable, appearing in the name and
address statement is treated as the brand name.
(b) Misleading brand names. Labels may not include any misleading
brand names. A brand name is misleading if it creates (by itself or in
association with other printed or graphic matter) any erroneous
impression or inference as to the age, origin, identity, or other
characteristics of the malt beverage. A brand name that would otherwise
be misleading may be qualified with the word ``brand'' or with some
other qualification if the appropriate TTB officer determines that the
qualification dispels any misleading impression that might otherwise be
created.
Sec. 7.65 Alcohol content.
(a) General. Alcohol content and the percentage and quantity of the
original gravity or extract may be stated on any malt beverage label.
When alcohol content is stated, it must be stated as prescribed in
paragraph (b) of this section.
(b) How the alcohol content must be expressed. The following rules
apply to both mandatory and optional statements of alcohol content.
(1) A statement of alcohol content must be expressed as a
percentage of alcohol by volume and not by proof, by a range, or by
maximums or minimums. Other truthful, accurate, and specific factual
representations of alcohol content, such as alcohol by weight, may be
made, as long as they appear together with, and as part of, the
statement of alcohol content as a percentage of alcohol by volume.
(2) For malt beverages containing one half of one percent (0.5
percent) or more alcohol by volume, statements of alcohol content must
be expressed to the nearest one-tenth of a percentage point, subject to
the tolerance permitted by paragraph (c) of this section. For malt
beverages containing less than one half of one percent alcohol by
volume, alcohol content may be expressed either to the nearest one-
tenth or the nearest one-hundredth of a percentage point, and such
statements are not subject to any tolerance. See paragraph (e) of this
section for the rules applicable to such statements.
(3)(i) The alcohol content statement must be expressed in one of
the following formats:
(A) ``Alcohol __ percent by volume'';
(B) ``__ percent alcohol by volume''; or
(C) ``Alcohol by volume: __ percent.''
(ii) Any of the words or symbols may be enclosed in parentheses and
authorized abbreviations may be used with or without a period. The
alcohol content statement does not have to appear with quotation marks.
(4) The statements listed in paragraph (b)(3) of this section must
appear as shown, except that the following abbreviations may be used:
Alcohol may be abbreviated as ``alc''; percent may be represented by
the percent symbol ``%''; alcohol and volume may be separated by a
slash ``/'' in lieu of the word ``by''; and volume may be abbreviated
as ``vol''.
(5) Examples. The following are examples of alcohol content
statements that comply with the requirements of this part:
(i) ``4.2% alc/vol'';
(ii) ``Alc. 4.0 percent by vol.'';
(iii) ``Alc 4% by vol''; and
(iv) ``5.9% Alcohol by Volume.''
(c) Tolerances. Except as provided by paragraph (d) of this
section, a tolerance of up to one percentage point will be permitted,
either above or below the stated alcohol content, for malt beverages
containing 0.5 percent or more alcohol by volume. However, any malt
beverage that is labeled as containing 0.5 percent or more alcohol by
volume may not contain less than 0.5 percent alcohol by volume,
regardless of any tolerance. The tolerance provided by this paragraph
does not apply in determining compliance with the provisions of Sec.
7.5 regarding the percentage of alcohol derived from added nonbeverage
flavors and other nonbeverage ingredients containing alcohol.
(d) Low alcohol and reduced alcohol. The terms ``low alcohol'' or
``reduced alcohol'' may be used only on labels of malt beverages
containing less than 2.5 percent alcohol by volume. The actual alcohol
content may not equal or exceed 2.5 percent alcohol by volume,
regardless of any tolerance permitted by paragraph (c) of this section.
(e) Non-alcoholic. The term ``non-alcoholic'' may be used on labels
of malt beverages only if the statement ``contains less than 0.5
percent (or 0.5%) alcohol by volume'' appears immediately adjacent to
it, in readily legible printing, and on a completely contrasting
background. No tolerances are permitted for malt beverages labeled as
``non-alcoholic'' and containing less than 0.5 percent alcohol by
volume. A malt beverage may not be labeled with an alcohol content of
0.0 percent alcohol by volume, unless it is also labeled as ``alcohol
free'' in accordance with paragraph (f) of this section, and contains
no alcohol.
(f) Alcohol free. The term ``alcohol free'' may be used only on
malt beverages containing no alcohol. No tolerances are permitted for
``alcohol free'' malt beverages.
Sec. 7.66 Name and address for domestically bottled malt beverages
that were wholly fermented in the United States.
(a) General. Domestically bottled malt beverages that were wholly
fermented in the United Sates and contain no imported malt beverages
must be labeled in accordance with this section. (See Sec. Sec. 7.67
and 7.68 for name and address requirements applicable to malt beverages
that are not wholly fermented in the United States.)
(b) Mandatory statement. A label on the container must state the
name and address of the bottler, in accordance with the rules set forth
in this section.
(c) Form of address. The address consists of the city and State and
must be consistent with the information reflected on the brewer's
notice required under part 25 of this chapter. Addresses may, but are
not required to, include additional information such as street names,
counties, zip codes, phone numbers, and website addresses. The postal
abbreviation of the State name may be used; for example, California may
be abbreviated as CA.
(d) Optional statements. The bottler may, but is not required to,
be identified by a phrase describing the function performed by that
person, such as ``bottled by,'' ``canned by,'' ``packed by,'' or
``filled by,'' followed by the name and address of the bottler. If one
person performs more than one function, the label may so indicate (for
[[Page 60680]]
example, ``brewed and bottled by XYZ Brewery.'') If different functions
are performed by more than one person, statements on the label may not
create the misleading impression that the different functions were
performed by the same person. The appropriate TTB officer may require
specific information about the functions performed if necessary to
prevent a misleading impression on the label.
(e) Principal place of business. The bottler's principal place of
business may be shown in lieu of the actual place where the malt
beverage was bottled if the address shown is a location where a
bottling operation takes place. The appropriate TTB officer may
disapprove the listing of a principal place of business if its use
would create a false or misleading impression as to the geographic
origin of the malt beverage. See 27 CFR 25.141 and 25.142 for coding
requirements applicable in these circumstances.
(f) Multiple breweries under the same ownership. If two or more
breweries are owned or operated by the same person, the place where the
malt beverage is bottled within the meaning of paragraph (a) of this
section may be shown in one of the following two ways:
(1) Listing of where bottled. The place where the malt beverage is
bottled may be shown as the only location on the label; or
(2) Listing of all brewer's locations. The place where the malt
beverage is bottled may appear in a listing of the locations of
breweries owned by that person if the place of bottling is not given
less emphasis than any of the other locations. See 27 CFR 25.141 and
25.142 for coding requirements applicable in these circumstances.
(g) Malt beverages bottled for another person. (1) If malt
beverages are brewed and bottled for another person, the label may
state, in addition to (but not in lieu of) the name and address of the
bottler, the name and address of such other person, immediately
preceded by the words ``brewed and bottled for'' or ``bottled for'' or
another similar appropriate phrase. Such statements must clearly
indicate the relationship between the two persons (for example,
contract brewing).
(2) If the same brand of malt beverage is brewed and bottled by two
or more breweries that are not under the same ownership, the label for
each brewery may set forth all the locations where bottling takes
place, as long as the label uses the actual location (and not the
principal place of business) and as long as the nature of the
arrangement is clearly set forth.
(h) Use of trade names. The name of the person appearing on the
label may be the trade name or the operating name, as long as it is
identical to a trade or operating name appearing on the brewer's
notice, and as long as use of that name would not create a misleading
impression as to the age, origin, or identity of the product. For
example, if a brewery authorizes the use of its trade name by another
brewery that is not under the same ownership, that trade name may not
be used on a label in a way that tends to mislead consumers as to the
identity or location of the bottler.
Sec. 7.67 Name and address for domestically bottled malt beverages
that were bottled after importation.
(a) General. This section applies to domestically bottled malt
beverages that were bottled after importation. See Sec. 7.68 for name
and address requirements applicable to imported malt beverages that are
imported in a container. See 19 CFR parts 102 and 134 for U.S. Customs
and Border Protection country of origin marking requirements.
(b) Malt beverages that were subject to blending or other
production activities after importation. Malt beverages that were
subject, after importation, to blending or other production may not
bear an ``imported by'' statement on the label, but must instead be
labeled in accordance with the rules set forth in Sec. 7.66 with
regard to mandatory and optional labeling statements.
(c) Malt beverages bottled after importation without blending or
other production activities. The label on malt beverages that are
bottled without being subject to blending or other production
activities in the United States after the malt beverages were imported
state must state the words ``imported by'' or a similar appropriate
phrase, followed by the name and address of the importer. The label
must also state the words ``bottled by'' or ``packed by,'' followed by
the name and address of the bottler, except that the following phrases
are acceptable in lieu of the name and address of the bottler under the
circumstances set forth below:
(1) If the malt beverages were bottled for the person responsible
for the importation, the words ``imported and bottled (canned, packed
or filled) in the United States for'' (or a similar appropriate phrase)
followed by the name and address of the principal place of business in
the United States of the person responsible for the importation;
(2) If the malt beverages were bottled by the person responsible
for the importation, the words ``imported and bottled (canned, packed
or filled) in the United States by'' (or a similar appropriate phrase)
followed by the name and address of the principal place of business in
the United States of the person responsible for the importation;
(3) In the situations set forth in paragraphs (c)(1) and (2) of
this section, the address shown on the label may be that of the
principal place of business of the importer who is also the bottler,
provided that the address shown is a location where bottling takes
place.
(d) Use of trade names. A trade name may be used if the trade name
is listed on the importer's basic permit and if its use on the label
would not create any misleading impression as to the age, origin, or
identity of the product. In addition, the label may, but is not
required to, state the name and principal place of business of the
foreign manufacturer, bottler, or shipper.
Sec. 7.68 Name and address for malt beverages that are imported in a
container.
(a) General. This section applies to malt beverages that are
imported in a container, as defined in Sec. 7.1. See Sec. 7.67 for
rules regarding name and address requirements applicable to malt
beverages that are domestically bottled after importation. See 19 CFR
parts 102 and 134 for U.S. Customs and Border Protection country of
origin marking requirements.
(b) Mandatory labeling statement. The label on malt beverages
imported in containers, as defined in Sec. 7.1, must state the words
``imported by'' or a similar appropriate phrase, followed by the name
and address of the importer.
(1) For purposes of this section, the importer is the holder of the
importer's basic permit that either makes the original Customs entry or
is the person for whom such entry is made, or the holder of the
importer's basic permit that is the agent, distributor, or franchise
holder for the particular brand of imported alcohol beverages and that
places the order abroad.
(2) The address of the importer must be stated as the city and
State of the principal place of business and must be consistent with
the address reflected on the importer's basic permit. Addresses may,
but are not required to, include additional information such as street
names, counties, zip codes, phone numbers, and website addresses. The
postal abbreviation of the State name may be used; for example,
California may be abbreviated as CA.
Sec. 7.69 Country of origin.
(a) Pursuant to U.S. Customs and Border Protection (CBP)
regulations at 19 CFR parts 102 and 134, a country of origin statement
must appear on the
[[Page 60681]]
container of malt beverages imported in containers or bottled in the
United States after importation. Labeling statements with regard to the
country of origin must be consistent with CBP regulations. The
determination of the country (or countries) of origin, for imported
malt beverages, as well as for blends of imported malt beverages with
domestically fermented malt beverages, must comply with CBP
regulations.
(b) It is the responsibility of the importer or bottler, as
appropriate, to ensure compliance with the country of origin marking
requirement, both when malt beverages are imported in containers and
when imported malt beverages are subject to bottling, blending, or
production activities in the United States. Industry members may seek a
ruling from CBP for a determination of the country of origin for their
product.
Sec. 7.70 Net contents.
The following rules apply to the net contents statement required by
Sec. 7.63.
(a) The volume of malt beverage in the container must appear on a
label as a net contents statement using the following measures:
(1) If less than one pint, the net contents must be stated in fluid
ounces or fractions of a pint.
(2) If one pint, one quart, or one gallon, the net contents must be
so stated.
(3) If more than one pint, but less than one quart, the net
contents must be stated in fractions of a quart, or in pints and fluid
ounces.
(4) If more than one quart, but less than one gallon, the net
contents must be stated in fractions of a gallon, or in quarts, pints,
and fluid ounces.
(5) If more than one gallon, the net contents must be stated in
gallons and fractions thereof.
(b) All fractions must be expressed in their lowest denominations.
(c) Metric measures may be used in addition to, but not in lieu of,
the U.S. standard measures and must appear in the same field of vision.
Subpart F--Restricted Labeling Statements
Sec. 7.81 General.
(a) Application. The labeling practices, statements, and
representations in this subpart may be used on malt beverage labels
only when used in compliance with this subpart. In addition, if any of
the practices, statements, or representations in this subpart are used
elsewhere on containers or in packaging, they must comply with the
requirements of this subpart. For purposes of this subpart:
(1) The term ``label'' includes all labels on malt beverage
containers on which mandatory information may appear, as set forth in
Sec. 7.61(a), as well as any other label on the container.
(2) The term ``container'' includes all parts of the malt beverage
container, including any part of a malt beverage container on which
mandatory information may appear, as well as those parts of the
container on which information does not satisfy mandatory labeling
requirements, as set forth in Sec. 7.61(b).
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering, or other packaging of such containers used for
sale at retail, but does not include shipping cartons or cases that are
not intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of this subpart, the
term ``statement or representation'' includes any statement, design,
device, or representation, and includes pictorial or graphic designs or
representations as well as written ones. The term ``statement or
representation'' includes explicit and implicit statements and
representations.
Food Allergen Labeling
Sec. 7.82 Voluntary disclosure of major food allergens.
(a) Definitions. For purposes of this section, the following terms
have the meanings indicated.
(1) Major food allergen means any of the following:
(i) Milk, egg, fish (for example, bass, flounder, or cod),
Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts
(for example, almonds, pecans, or walnuts), wheat, peanuts, and
soybeans; or
(ii) A food ingredient that contains protein derived from a food
specified in paragraph (a)(1)(i) of this section, except:
(A) Any highly refined oil derived from a food specified in
paragraph (a)(1)(i) of this section and any ingredient derived from
such highly refined oil; or
(B) A food ingredient that is exempt from major food allergen
labeling requirements pursuant to a petition for exemption approved by
the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or
pursuant to a notice submitted to the FDA under 21 U.S.C. 343(w)(7),
provided that the food ingredient meets the terms or conditions, if
any, specified for that exemption.
(2) Name of the food source from which each major food allergen is
derived means the name of the food as listed in paragraph (a)(1)(i) of
this section, except that:
(i) In the case of a tree nut, it means the name of the specific
type of nut (for example, almonds, pecans, or walnuts);
(ii) In the case of Crustacean shellfish, it means the name of the
species of Crustacean shellfish (for example, crab, lobster, or
shrimp); and
(iii) The names ``egg'' and ``peanuts,'' as well as the names of
the different types of tree nuts, may be expressed in either the
singular or plural form, and the names ``soy,'' ``soybean,'' or
``soya'' may be used instead of ``soybeans.''
(b) Voluntary labeling standards. Major food allergens used in the
production of a malt beverage product may, on a voluntary basis, be
declared on a label. However, if any one major food allergen is
voluntarily declared, all major food allergens used in production of
the malt beverage product, including major food allergens used as
fining or processing agents, must be declared, except when covered by a
petition for exemption approved by the appropriate TTB officer under
Sec. 7.83. The major food allergens declaration must consist of the
word ``Contains'' followed by a colon and the name of the food source
from which each major food allergen is derived (for example,
``Contains: egg'').
(c) Cross reference. For mandatory labeling requirements applicable
to malt beverage products containing FD&C Yellow No. 5, sulfites,
aspartame, and cochineal extract or carmine, see Sec. 7.63(b).
Sec. 7.83 Petitions for exemption from major food allergen labeling.
(a) Submission of petition. Any person may petition the appropriate
TTB officer to exempt a particular product or class of products from
the labeling requirements of Sec. 7.82. The burden is on the
petitioner to provide scientific evidence (as well as the analytical
method used to produce the evidence) that demonstrates that the
finished product or class of products, as derived by the method
specified in the petition, either:
(1) Does not cause an allergic response that poses a risk to human
health; or
(2) Does not contain allergenic protein derived from one of the
foods identified in Sec. 7.82(a)(1)(i), even though a major food
allergen was used in production.
(b) Decision on petition. TTB will approve or deny a petition for
exemption submitted under paragraph (a) of this section in writing
within 180 days of receipt of the petition. If TTB does not provide a
written response to the petitioner within that 180-day
[[Page 60682]]
period, the petition will be deemed denied unless an extension of time
for decision is mutually agreed upon by the appropriate TTB officer and
the petitioner. TTB may confer with the Food and Drug Administration
(FDA) on petitions for exemption, as appropriate and as FDA resources
permit. TTB may require the submission of product samples and other
additional information in support of a petition; however, unless
required by TTB, the submission of samples or additional information by
the petitioner after submission of the petition will be treated as the
withdrawal of the initial petition and the submission of a new
petition. An approval or denial under this section will constitute
final agency action.
(c) Resubmission of a petition. After a petition for exemption is
denied under this section, the petitioner may resubmit the petition
along with supporting materials for reconsideration at any time. TTB
will treat this submission as a new petition.
(d) Availability of information--(1) General. TTB will promptly
post to its website (https://www.ttb.gov) all petitions received under
this section as well as TTB's responses to those petitions. Any
information submitted in support of the petition that is not posted to
the TTB website will be available to the public pursuant to the Freedom
of Information Act (5 U.S.C. 552), except where a request for
confidential treatment is granted under paragraph (d)(2) of this
section.
(2) Requests for confidential treatment of business information. A
person who provides trade secrets or other commercial or financial
information in connection with a petition for exemption under this
section may request that TTB give confidential treatment to that
information. A failure to request confidential treatment at the time
the information in question is submitted to TTB will constitute a
waiver of confidential treatment. A request for confidential treatment
of information under this section must conform to the following
standards:
(i) The request must be in writing;
(ii) The request must clearly identify the information to be kept
confidential;
(iii) The request must relate to information that constitutes trade
secrets or other confidential, commercial, or financial information
regarding the business transactions of an interested person, the
disclosure of which would cause substantial harm to the competitive
position of that person;
(iv) The request must set forth the reasons why the information
should not be disclosed, including the reasons the disclosure of the
information would prejudice the competitive position of the interested
person; and
(v) The request must be supported by a signed statement by the
interested person, or by an authorized officer or employee of that
person, certifying that the information in question is a trade secret
or other confidential, commercial, or financial information and that
the information is not already in the public domain.
Production and Other Claims
Sec. 7.84 Use of the term ``organic.''
Use of the term ``organic'' is permitted if any such use complies
with the United States Department of Agriculture (USDA) National
Organic Program rules (7 CFR part 205), as interpreted by the USDA.
Sec. 7.85 Environmental, sustainability, and similar statements.
Statements related to environmental or sustainable agricultural
practices, social justice principles, and other similar statements
(such as, ``Produced using 100% solar energy'' or ``Carbon Neutral'')
may appear as long as the statements are truthful, specific and not
misleading. Statements or logos indicating environmental, sustainable
agricultural, or social justice certification (such as, ``Biodyvin,''
``Salmon-Safe,'' or ``Fair Trade Certified'') may appear on malt
beverages that are actually certified by the appropriate organization.
Sec. 7.86 [Reserved]
Sec. 7.87 Use of the term ``draft.''
(a) General. A malt beverage may be labeled with the term ``draft''
only if it complies with the requirements of paragraph (b)(1), (2), or
(3) of this section. The word ``draft'' may be spelled ``draft'' or
``draught.''
(b) Requirements. (1) Malt beverages in a container of one gallon
or more that dispenses the malt beverages through a tap, spigot,
faucet, or similar device may be described as draft.
(2) Malt beverages packaged in customary bottles or cans may be
described as draft if they are unpasteurized and require refrigeration
for preservation, or if the beer has been sterile filtered and
aseptically filled (but not pasteurized).
(3) Malt beverages that have been pasteurized that are packaged in
customary bottles or cans may be described as ``draft brewed,'' ``draft
beer flavor,'' ``old time on-tap taste,'' or with a similar expression
only if the word ``pasteurized'' appears conspicuously on the label or
container.
Subpart G--Prohibited Labeling Practices
Sec. 7.101 General.
(a) Application. The prohibitions set forth in this subpart apply
to any malt beverage label, container, or packaging. For purposes of
this subpart:
(1) The term ``label'' includes all labels on malt beverage
containers on which mandatory information may appear, as set forth in
Sec. 7.61(a), as well as any other label on the container;
(2) The term ``container'' includes all parts of the malt beverage
container, including any part of a malt beverage container on which
mandatory information may appear, as well as those parts of the
container on which information does not satisfy mandatory labeling
requirements as set forth in Sec. 7.61(b); and
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering, or other packaging of such containers used for
sale at retail but does not include shipping cartons or cases that are
not intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of the practices in
this subpart, the term ``statement or representation'' includes any
statement, design, device, or representation, and includes pictorial or
graphic designs or representations as well as written ones. The term
``statement or representation'' includes explicit and implicit
statements and representations.
Sec. 7.102 False or untrue statements.
Malt beverage labels, containers, or packaging may not contain any
statement or representation that is false or untrue in any particular.
Sec. 7.103 Obscene or indecent depictions.
Malt beverage labels, containers, or packaging may not contain any
statement or representation that is obscene or indecent.
Subpart H--Labeling Practices That Are Prohibited if They Are
Misleading
Sec. 7.121 General.
(a) Application. The labeling practices that are prohibited if
misleading set forth in this subpart apply to any malt beverage label,
container, or packaging. For purposes of this subpart:
(1) The term ``label'' includes all labels on malt beverage
containers on which mandatory information may appear, as set forth in
Sec. 7.61(a), as well as any other label on the container;
(2) The term ``container'' includes all parts of the malt beverage
container, including any part of a malt beverage
[[Page 60683]]
container on which mandatory information may appear, as well as those
parts of the container on which information does not satisfy mandatory
labeling requirements, as set forth in Sec. 7.61(b); and
(3) The term ``packaging'' includes any carton, case, carrier,
individual covering, or other packaging of such containers used for
sale at retail but does not include shipping cartons or cases that are
not intended to accompany the container to the consumer.
(b) Statement or representation. For purposes of this subpart, the
term ``statement or representation'' includes any statement, design,
device, or representation, and includes pictorial or graphic designs or
representations as well as written ones. The term ``statement or
representation'' includes explicit and implicit statements and
representations.
Sec. 7.122 Misleading statements or representations.
(a) General prohibition. Malt beverage labels, containers, or
packaging may not contain any statement or representation, irrespective
of falsity, that is misleading to consumers as to the age, origin,
identity, or other characteristics of the malt beverage, or with regard
to any other material factor.
(b) Ways in which statements or representations may be misleading.
(1) A statement or representation is prohibited, irrespective of
falsity, if it directly creates a misleading impression or if it does
so indirectly through ambiguity, omission, inference, or by the
addition of irrelevant, scientific, or technical matter. For example,
an otherwise truthful statement may be misleading because of the
omission of material information, the disclosure of which is necessary
to prevent the statement from being misleading.
(2) As set forth in Sec. 7.212(b), all claims, whether implicit or
explicit, must have a reasonable basis in fact. Any claim on malt
beverage labels, containers, or packaging that does not have a
reasonable basis in fact or cannot be adequately substantiated upon the
request of the appropriate TTB officer is considered misleading.
Sec. 7.123 Guarantees.
Malt beverage labels, containers, or packaging may not contain any
statement relating to guarantees if the appropriate TTB officer finds
it is likely to mislead the consumer. However, money-back guarantees
are not prohibited.
Sec. 7.124 Disparaging statements.
(a) General. Malt beverage labels, containers, or packaging may not
contain any false or misleading statement that explicitly or implicitly
disparages a competitor's product.
(b) Examples. (1) An example of an explicit statement that falsely
disparages a competitor's product is ``Brand X is not aged in oak
barrels'' when such statement is not true.
(2) An example of an implicit statement that disparages
competitors' products in a misleading fashion is ``We do not add
arsenic to our malt beverage,'' where such a claim is true but it may
lead consumers to falsely believe that other brewers do add arsenic to
their malt beverages.
(c) Truthful and accurate comparisons. This section does not
prevent truthful and accurate comparisons between products (such as
``Our ale contains more hops than Brand X'') or statements of opinion
(such as ``We think our beer tastes better than any other beer on the
market'').
Sec. 7.125 Tests or analyses.
Malt beverage labels, containers, or packaging may not contain any
statement or representation of or relating to analyses, standards, or
tests, whether or not it is true, that is likely to mislead the
consumer. An example of a misleading statement is ``tested and approved
by our research laboratories'' if the testing and approval does not in
fact have any significance.
Sec. 7.126 Depictions of government symbols.
(a) Representations of the armed forces or flags. Malt beverage
labels, containers, or packaging may not show an image of any
government's flag or any representation related to the armed forces of
the United States if the representation, standing alone or considered
together with any additional language or symbols on the label, creates
a false or misleading impression that the product was endorsed by, made
by, used by, or made under the supervision of the government
represented by that flag or by the armed forces of the United States.
This section does not prohibit the use of a flag as part of a claim of
American origin or another country of origin.
(b) Government seals. Malt beverage labels, containers, or
packaging may not contain any government seal or other insignia that is
likely to create a false or misleading impression that the product has
been endorsed by, made by, used by, or produced for, under the
supervision of, or in accordance with the specification of that
government. Seals required or specifically authorized by applicable law
or regulations and used in accordance with such law or regulations are
not prohibited.
Sec. 7.127 Depictions simulating government stamps or relating to
supervision.
Malt beverage labels, containers, or packaging may not contain any
statements, images, or designs that mislead consumers to believe that
the malt beverage is manufactured or processed under government
authority. Malt beverage labels, containers, or packaging may not
contain images or designs resembling a stamp of the U.S. Government or
any State or foreign government, other than stamps authorized or
required by this or any other government, and may not contain
statements or indications that the malt beverage is produced, blended,
bottled, packed, or sold under, or in accordance with any municipal,
State, Federal, or foreign authorization, law, or regulations unless
such statement is required or specifically authorized by applicable law
or regulation. If a municipal, State, or Federal Government permit
number is stated on malt beverage labels, containers, or packaging, it
may not be accompanied by any additional statement relating to that
permit number.
Sec. 7.128 Claims related to distilled spirits or wines.
(a) General. Except as provided in paragraph (b) of this section,
no malt beverage labels, containers, or packaging may contain a
statement, design, or representation that tends to create a false or
misleading impression that the malt beverage product is a distilled
spirits or wine product, or that it contains distilled spirits or wine.
For example, the use of the name of a class or type designation of a
wine or distilled spirits product, as set forth in parts 4 and 5 of
this chapter, is prohibited if the use of that name tends to create a
false or misleading impression as to the identity of the product.
Homophones or coined words that simulate or imitate a class or type
designation are also prohibited.
(b) Exceptions. This section does not prohibit:
(1) A truthful and accurate statement of alcohol content;
(2) The use of a brand name of a wine or distilled spirits product
as a malt beverage brand name, provided that the overall label does not
create a misleading impression as to the identity of the product;
(3) The use of a cocktail name as a brand name or a distinctive or
fanciful name of a malt beverage, provided that
[[Page 60684]]
the overall labeling does not present a misleading impression about the
identity of the product;
(4) The use of truthful and accurate statements about the
production of the malt beverage as part of a statement of composition
or otherwise, such as ``aged in whisky barrels,'' ``fermented with
grapes,'' or ``Beer brewed with chardonnay grapes'' as long as such
statements do not create a misleading impression as to the identity of
the product;
(5) The use of the designation ``barley (or wheat or rye) wine
ale'' or ``barley (or wheat or rye) style wine ale''; or
(6) The use of terms that simply compare malt beverage products to
wine or distilled spirits products without creating a misleading
impression as to the identity of the product.
Sec. 7.129 Health-related statements.
(a) Definitions. When used in this section, the following terms
have the meaning indicated:
(1) Health-related statement means any statement related to health
(other than the warning statement required under part 16 of this
chapter) and includes statements of a curative or therapeutic nature
that, expressly or by implication, suggest a relationship between the
consumption of alcohol, malt beverages, or any substance found within
the malt beverage, and health benefits or effects on health. The term
includes both specific health claims and general references to alleged
health benefits or effects on health associated with the consumption of
alcohol, a malt beverage, or any substance found within the malt
beverage product, as well as health-related directional statements. The
term also includes statements and claims that imply that a physical or
psychological sensation results from consuming the alcohol beverage
product, as well as statements and claims of nutritional value (for
example, statements of vitamin content). Numerical statements of the
calorie, carbohydrate, protein, and fat content of the product do not
constitute claims of nutritional value.
(2) Specific health claim means a type of health-related statement
that, expressly or by implication, characterizes the relationship of
malt beverages, alcohol, or any substance found within the malt
beverage, to a disease or health-related condition. Implied specific
health claims include statements, symbols, vignettes, or other forms of
communication that suggest, within the context in which they are
presented, that a relationship exists between alcohol, malt beverages,
or any substance found within the malt beverage, and a disease or
health-related condition.
(3) Health-related directional statement means a type of health-
related statement that directs or refers consumers to a third party or
other source for information regarding the effects on health of malt
beverage or alcohol consumption.
(b) Rules for malt beverage labels, containers, and packaging--(1)
Health-related statements. In general, malt beverage labels,
containers, or packaging may not contain any health-related statement
that is untrue in any particular or tends to create a misleading
impression as to the effects on health of alcohol consumption. TTB will
evaluate such statements on a case-by-case basis and may require as
part of the health-related statement a disclaimer or some other
qualifying statement to dispel any misleading impression conveyed by
the health-related statement.
(2) Specific health claims. (i) TTB will consult with the Food and
Drug Administration (FDA) as needed on the use of specific health
claims on labels, containers, or packaging. If FDA determines that the
use of such a claim is a drug claim that is not in compliance with the
requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not
approve the use of that specific health claim on the malt beverage
label.
(ii) TTB will approve the use of a specific health claim on a malt
beverage label only if the claim is truthful and adequately
substantiated by scientific or medical evidence; is sufficiently
detailed and qualified with respect to the categories of individuals to
whom the claim applies; adequately discloses the health risks
associated with both moderate and heavier levels of alcohol
consumption; and outlines the categories of individuals for whom any
levels of alcohol consumption may cause health risks. This information
must appear as part of the specific health claim.
(3) Health-related directional statements. A health-related
directional statement is presumed misleading unless it:
(i) Directs consumers in a neutral or other non-misleading manner
to a third party or other source for balanced information regarding the
effects on health of malt beverage or alcohol consumption; and
(ii)(A) Includes as part of the health-related directional
statement the following disclaimer: ``This statement should not
encourage you to drink or to increase your alcohol consumption for
health reasons''; or
(B) Includes as part of the health-related directional statement
some other qualifying statement that the appropriate TTB officer finds
is sufficient to dispel any misleading impression conveyed by the
health-related directional statement.
Sec. 7.130 Appearance of endorsement.
(a) General. Malt beverage labels, containers, or packaging may not
include the name, or the simulation or abbreviation of the name, of any
living individual of public prominence or an existing private or public
organization, or any graphic, pictorial, or emblematic representation
of the individual or organization if its use is likely to lead a
consumer to falsely believe that the product has been endorsed, made,
or used by, or produced for, or under the supervision of, or in
accordance with the specifications of, such individual or organization.
This section does not prohibit the use of such names where the
individual or organization has provided authorization for their use.
(b) Documentation. The appropriate TTB officer may request
documentation from the bottler or importer to establish that the person
or organization has provided authorization to use the name of that
person or organization.
(c) Disclaimers. Statements or other representations do not violate
this section if, taken as a whole, they create no misleading impression
as to an implied endorsement either because of the context in which
they are presented or because of the use of an adequate disclaimer.
Sec. 7.131 The word ``bonded'' and similar terms.
Malt beverage labels, containers, or packaging may not contain the
words ``bonded,'' ``bottled in bond,'' ``aged in bond,'' ``bonded
age,'' ``bottled under Customs supervision,'' or other phrases
containing these or synonymous terms that create a misleading
impression as to governmental supervision over production or bottling.
Sec. 7.132 Strength claims.
(a) General. For purposes of this section, the term ``strength
claim'' means a statement that directly or indirectly makes a claim
about the alcohol content of the product. This section does not apply
to the use of the terms ``low alcohol,'' ``reduced alcohol,'' ``non-
alcoholic,'' and ``alcohol-free'' in accordance with Sec. 7.65; to
claims about low alcohol content in general; or to labeling with an
alcohol content statement in accordance with Sec. 7.65.
(b) Prohibition. The use of a strength claim on malt beverage
labels,
[[Page 60685]]
containers, or packaging is prohibited if it misleads consumers by
implying that products should be purchased or consumed on the basis of
higher alcohol strength. Examples of strength claims are ``full
strength,'' ``extra strength,'' ``high test,'' and ``high proof.''
Subpart I--Classes and Types of Malt Beverages
Sec. 7.141 Class and type.
(a) Products known to the trade. The class of the malt beverage
must be stated on the label (see Sec. 7.63). The type of the malt
beverage may be stated, but is not required to appear on the label.
Statements of class and type must conform to the designation of the
product as known to the trade. All parts of the designation must appear
together.
(b) Malt beverage specialty products--(1) General. A malt beverage
specialty product is a malt beverage that does not fall under any of
the class designations set forth in Sec. Sec. 7.142 through 7.144 and
is not known to the trade under a particular designation, usually
because of the addition of ingredients such as colorings, flavorings,
or food materials or the use of certain types of production processes
where the appropriate TTB officer has not determined that such
ingredients or processes are generally recognized as traditional in the
production of a fermented beverage designated as ``beer,'' ``ale,''
``porter,'' ``stout,'' ``lager,'' or ``malt liquor.''
(2) Designation. A malt beverage specialty product must be
designated with a distinctive or fanciful name, together with a
statement of the composition of the product, in accordance with Sec.
7.147. This statement will be considered the class designation for the
purposes of this part. All parts of the designation must appear
together.
Sec. 7.142 Class designations.
The following class designations may be used in accordance with
this section:
(a) Any malt beverage, as defined in Sec. 7.1, may be designated
simply as a ``malt beverage.''
(b)(1) The class designations ``beer,'' ``ale,'' ``porter,''
``stout,'' ``lager,'' and ``malt liquor'' may be used to designate malt
beverages that contain at least 0.5 percent alcohol by volume and that
conform to the trade understanding of those designations. These
designations may be preceded or followed by descriptions of the color
of the product (such as ``amber,'' ``brown,'' ``red,'' or ``golden'')
as well as descriptive terms such as ``dry,'' ``export,'' ``cream,''
and ``pale.''
(2) No product other than a malt beverage fermented at a
comparatively high temperature, possessing the characteristics
generally attributed to ``ale,'' ``porter,'' or ``stout'' and produced
without the use of coloring or flavoring materials (other than those
recognized in standard brewing practices) may bear any of these class
designations.
(c) The name ``Pilsen'' (or ``Pilsener'' or ``Pilsner'') may be
used as the class designation for beers produced in the Czech Republic
or the United States without use of the word ``type'' or a similar
qualifying statement. See Sec. 7.106. The name also may be used as the
class designation for beer produced outside of those countries, as long
as it is qualified in accordance with the requirements of Sec. 7.146.
Sec. 7.143 Class and type--special rules.
The following special rules apply to specified class and type
designations:
(a) Reconstituted malt beverages. Malt beverages that have been
concentrated by the removal of water therefrom and reconstituted by the
addition of water and carbon dioxide must for the purpose of this part
be labeled in the same manner as malt beverages which have not been
concentrated and reconstituted, except that there must appear
immediately adjacent to, and as a part of, the class designation the
statement ``PRODUCED FROM ___ CONCENTRATE'' (the blank to be filled in
with the appropriate class designation). All parts of the class
designation must appear in lettering of substantially the same size and
kind. However, ice beers, described in paragraph (c) of this section,
which are produced by the removal of less than 0.5 percent of the
volume of the beer in the form of ice crystals and that retain beer
character are not considered concentrated.
(b) Half and half. No product may be designated with the type
designation ``half and half'' unless it is in fact composed of equal
parts of two classes of malt beverages, the names of which are
conspicuously stated immediately adjacent to the designation ``half and
half.'' For example, ``Half and Half, Porter and Stout.'' This does not
preclude the use of terms such as ``half and half'' as part of a
distinctive or fanciful name that refers to flavors added to a malt
beverage designated in accordance with trade understanding or with a
statement of composition.
(c) Ice beer. Malt beverages supercooled during the brewing process
to form ice crystals may be labeled with the type designation ``ice''
preceding the class designation (beer, ale, etc.).
(d) Black and tan. A product composed of two classes of malt
beverages may be designated with the type designation ``black and
tan,'' and the class and type designation is the names of the two
classes of malt beverages in conjunction with ``black and tan'' (for
example, ``Black and Tan, Stout and Ale'').
(e) Wheat beer. Any ``beer,'' ``ale,'' ``porter,'' ``stout,''
``lager,'' ``malt liquor,'' or other malt beverage made from a
fermentable base that consists of at least 25 percent by weight malted
wheat may be designated with the type designation ``wheat'' preceding
the applicable class designation.
(f) Rye beer. Any ``beer,'' ``ale,'' ``porter,'' ``stout,''
``lager,'' ``malt liquor,'' or other malt beverage made from a
fermentable base that consists of at least 25 percent by weight malted
rye may be designated with the type designation ``rye'' preceding the
applicable class designation.
(g) Barley wine ale. The term ``barley (or wheat or rye) wine ale''
or ``barley (or wheat or rye) wine style ale'' may be used in
accordance with trade understanding.
(h) Malt beverages aged in barrels--(1) General. Label designations
for malt beverages aged in barrels or with woodchips, spirals, or
staves derived from barrels may, but are not required to, include a
description of how the product was aged. Thus, for example, acceptable
designations for a standard beer aged in an oak barrel would include
``beer,'' ``oak aged beer,'' and ``beer aged in an oak barrel.''
(2) Barrels previously used in the production or storage of wine or
distilled spirits. Malt beverages aged in barrels previously used in
the production or storage of wine or distilled spirits, or with
woodchips, spirals, or staves derived from barrels previously used in
the production or storage of wine or distilled spirits, or from
woodchips previously used in the aging of distilled spirits or wine
may, but are not required to, include a description of how the product
was aged.
(i) Examples of acceptable designations for a standard beer aged in
a wine barrel include ``beer,'' ``beer aged in a wine barrel,'' and
``wine barrel aged beer.''
(ii) Examples of acceptable designations for an ale brewed with
honey and aged in a bourbon barrel include ``honey ale'' and ``bourbon
barrel aged honey ale'' but not simply ``ale'' or ``bourbon barrel aged
ale.''
(3) Misleading designations. Designations that create a misleading
impression as to the identity of the product by emphasizing certain
words or terms are prohibited. As set forth in
[[Page 60686]]
Sec. 7.122, malt beverage labels may not include misleading
representations that imply that a malt beverage contains distilled
spirits or wine or is a distilled spirits or wine product. Examples of
designations that would be prohibited under this provision are
``bourbon ale,'' ``bourbon-flavored lager,'' ``Chardonnay lager,'' or
``lager with whisky flavors.''
(i) Other designations. Other type designations (such as ``milk''
preceding the class designation ``stout'') may be applied in
conformance with trade understanding.
Sec. 7.144 Malt beverages fermented or flavored with certain
traditional ingredients.
(a) General. Any malt beverage that has been fermented or flavored
only with one or more ingredients (such as honey or certain fruits)
that the appropriate TTB officer has determined are generally
recognized as traditional ingredients in the production of a fermented
beverage designated as ``beer,'' ``ale,'' ``porter,'' ``stout,''
``lager,'' or ``malt liquor'' may be labeled in accordance with trade
understanding following the rules set forth in this section.
(1) A list of such traditional ingredients may be found on the TTB
website (https://www.ttb.gov).
(2) If the malt beverage has also been fermented or flavored with
ingredients that the appropriate TTB officer has not determined are
generally recognized as traditional ingredients in the production of a
fermented beverage designated as ``beer,'' ``ale,'' ``porter,''
``stout,'' ``lager,'' or ``malt liquor,'' it is a malt beverage
specialty and must be labeled in accordance with the statement of
composition rules in Sec. 7.147
(b) Rules for designation. (1) A designation in accordance with
trade understanding must identify the base product, such as ``malt
beverage,'' ``beer,'' ``ale,'' ``porter,'' ``stout,'' ``lager,'' or
``malt liquor'' along with a modifier or explanation that provides the
consumer with adequate information about the fruit, honey, or other
food ingredient used in production of the malt beverage. The label may
include additional information about the production process (such as
``beer fermented with cherry juice'').
(2) Where more than one exempted ingredient is included, a
designation in accordance with trade understanding may identify each
ingredient (such as ``Ale with cherry juice, cinnamon, and nutmeg''),
refer to the ingredients by category (such as ``Fruit ale,'' ``Spiced
ale,'' or ``Ale with natural flavors''), or simply include the
ingredient or ingredients that the bottler or importer believes best
identify the product (such as ``Cherry ale,'' ``Cinnamon ale,'' or
``Nutmeg ale''). The designation must distinguish the product from a
malt beverage, beer, ale, porter, stout, lager, or malt liquor that is
not brewed or flavored with any of these ingredients; thus, unmodified
designations such as ``beer,'' ``stout,'' or ``ale'' would not be
acceptable.
(c) Other requirements. All parts of the designation must appear
together and must be readily legible on a contrasting background.
Designations that create a misleading impression as to the identity of
the product by emphasizing certain words or terms are prohibited.
Sec. 7.145 Malt beverages containing less than 0.5 percent alcohol by
volume.
(a) Products containing less than one-half of 1 percent (0.5%) of
alcohol by volume must bear the class designation ``malt beverage,''
``cereal beverage,'' or ``near beer.''
(b) If the designation ``near beer'' is used, both words must
appear in the same size and style of type, in the same color of ink,
and on the same background.
(c) No product containing less than one-half of 1 percent of
alcohol by volume may bear the class designations ``beer,'' ``lager
beer,'' ``lager,'' ``ale,'' ``porter,'' ``stout,'' or any other class
or type designation commonly applied to malt beverages containing one-
half of 1 percent or more of alcohol by volume.
Sec. 7.146 Geographical names.
(a) General. Except as provided further in paragraphs (b) through
(e) of this section, any geographical name that may be interpreted as
designating the origin of the malt beverage may not be used unless it
is a truthful representation as to the origin of the malt beverage.
(b) Generic names. The appropriate TTB officer may find certain
geographic names of types of malt beverages to be generic if they have
lost their geographic significance through use and common knowledge.
Generic names may be used to designate a malt beverage regardless of
its origin. TTB publishes a list of generic names on its website
(https://www.ttb.gov). The following are examples of names that have
been found to be generic: India Pale Ale, Scotch ale (Scottish ale),
and Russian Imperial Stout (Imperial Russian Stout).
(c) Brand names. A geographical name may be used as part of the
brand name for a product that does not come from the geographical area
named in the brand as long as the name is qualified with the word
``brand'' or with some other qualification that is adequate to dispel
any misleading impression that might otherwise be created in accordance
with Sec. 7.64.
(d) References to types and styles. (1) A geographical name may be
used on a label to precede a class designation where the name refers to
a particular type or style of product rather than the geographical
origin of the malt beverage, under the following conditions:
(i) The word ``type'' or ``style'' appears immediately adjacent to,
and in type size at least half as large as, the geographical name (such
as ``Irish style ale''); or some other statement indicating the true
place of production appears in the same field of vision as, and in type
size at least half as large as, the geographical name (such as ``Irish
ale--brewed in California'' or ``American Vienna lager''); and
(ii) The malt beverage to which the name is applied conforms to the
type or style so designated.
(2) The following are examples of references to types or styles of
malt beverages: Dortmund, Dortmunder, Vienna, Wien, Wiener, Bavarian,
Munich, Munchner, Salvator, Kulmbacher, Wurtzburger, and California
Common. These names of types or styles of malt beverages may be used in
addition to, but not in lieu of, a class designation (for example,
``Vienna style Beer,'' ``Bavarian Stout--Brewed in the United States,''
or ``California Common Lager--Brewed in Michigan'').
(3) The words ``type'' or ``style'' may also be used to designate
malt beverages that are manufactured in the geographic area indicated
by the name (such as ``German style Dortmunder beer'' or ``Vienna
beer--an Austrian type of malt beverage'') as long as the label does
not create confusion as to the origin of the malt beverage. Such
products may also be designated without the words ``type'' or ``style''
(for example, ``Dortmunder beer'' or ``Vienna beer'') for products that
originate in the geographical area named.
(e) Pilsen or Pilsener or Pilsner. The name ``Pilsen'' (or
``Pilsener'' or ``Pilsner'') has not been recognized as generic, but it
may be used to designate beers produced in the Czech Republic or the
United States without use of the word ``type'' or a similar qualifying
statement and without an additional class or type designation. See
Sec. 7.102(c).
Sec. 7.147 Statement of composition.
(a) A statement of composition is required to appear on the label
for malt beverage specialty products, as defined in Sec. 7.141(b),
which are not known to the trade under a particular designation. For
example, the addition of flavoring
[[Page 60687]]
materials, colors, or artificial sweeteners may change the class and
type of the malt beverage. The statement of composition along with a
distinctive or fanciful name serves as the class and type designation
for these products.
(b) When required by this part, a statement of composition must
contain all of the following information, as applicable:
(1) Identify the base class and/or type designation. The statement
of composition must clearly identify the base class and/or type
designation of the malt beverage product (e.g., ``beer,'' ``lager
beer,'' ``lager,'' ``ale,'' ``porter,'' ``stout,'' or ``malt
beverage'').
(2) Identify added flavoring material(s) used before, during, and
after fermentation. The statement of composition must disclose
fermentable or non-fermentable flavoring materials added to the malt
beverage base class.
(i) If the flavoring material is used before or during the
fermentation process, the statement of composition must indicate that
the malt beverage was fermented or brewed with the flavoring material
(such as ``Beer Fermented with grapefruit juice'' or ``Grapefruit
Ale''). If the flavoring material is added after fermentation, the
statement of composition must describe that process, using terms such
as ``added,'' ``with,'' ``infused,'' or ``flavored'' (such as
``Grapefruit-flavored ale.'')
(ii) If a single flavoring material is used in the production of
the malt beverage product, the flavoring material may be specifically
identified (such as ``Ale Fermented with grapefruit juice'') or
generally referenced (such as ``Ale with natural flavor''). If two or
more flavoring materials are used in the production of the malt
beverage, each flavoring material may be specifically identified (such
as ``lemon juice, kiwi juice'' or ``lemon and kiwi juice'') or the
characterizing flavoring material may be specifically identified and
the remaining flavoring materials may be generally referenced (such as
``kiwi and other natural and artificial flavor(s)''), or all flavors
may be generally referenced (such as ``with artificial flavors'').
(Note: TTB Procedure XXXX-XX, available on the TTB website (https://www.ttb.gov), provides guidance on the use of the terms ``natural'' and
``artificial'' when referencing flavoring materials.)
(3) Identify Added Coloring Material(s). The statement of
composition must disclose the addition of coloring material(s), whether
added directly or through flavoring material(s). The coloring materials
may be identified specifically (such as ``caramel color,'' ``FD&C Red
#40,'' ``annatto,'' etc.) or as a general statement, such as ``Contains
certified color'' for colors approved under 21 CFR subpart 74 or
``artificially colored'' to indicate the presence of any one or a
combination of coloring material(s). However, FD&C Yellow No. 5,
carmine, and cochineal extract require specific disclosure in
accordance with Sec. 7.63(b)(1) and (2) and that specific disclosure
may appear either in the statement of composition or elsewhere in
accordance with those sections.
(4) Identify added artificial sweeteners. The statement of
composition must disclose any artificial sweetener that is added to a
malt beverage product, whether the artificial sweetener is added
directly or through flavoring material(s). The artificial sweetener may
be identified specifically by either generic name or trademarked brand
name, or as a general statement (such as ``artificially sweetened'') to
indicate the presence of any one or combination of artificial
sweeteners. However, if aspartame is used, an additional warning
statement is required in accordance with Sec. 7.63(b)(4).
Subpart J-K--Reserved
Subpart L--Recordkeeping and Substantiation Requirements
Sec. 7.211 Recordkeeping requirements--certificates.
(a) Certificates of label approval (COLAs). Upon request by the
appropriate TTB officer, a bottler or importer must provide evidence of
label approval for a label used on a container of malt beverages that
is subject to the COLA requirements of this part. This requirement may
be satisfied by providing original COLAs, photocopies, or electronic
copies of COLAs, or records showing the TTB Identification number
assigned to the approved COLA. TTB may request such information for a
period of five years from the date that the products covered by the
COLAs were removed from the bottler's premises or from customs custody,
as applicable.
(b) Labels with revisions. Where labels on containers reflect
revisions to the approved label that have been made in compliance with
allowable revisions authorized by TTB Form 5100.31 or otherwise
authorized by TTB, the bottler or importer must, upon request by the
appropriate TTB officer, identify the COLA covering the product if the
product is required to be covered by a COLA. TTB may request such
information for a period of five years from the date that the products
covered by the COLA were removed from the bottler's premises or from
customs custody, as applicable.
(c) Other recordkeeping requirements under this part. See Sec.
7.26 for other recordkeeping requirements under this part.
Sec. 7.212 Substantiation requirements.
(a) Application. The substantiation requirements of this section
apply to any claim made on any label or container subject to the
requirements of this part.
(b) Reasonable basis in fact. All claims, whether implicit or
explicit, must have a reasonable basis in fact. Claims that contain
express or implied statements regarding the amount of support for the
claim (such as ``tests prove'' or ``studies show'') must have the level
of substantiation that is claimed. Any labeling claim that does not
have a reasonable basis in fact or cannot be adequately substantiated
upon the request of the appropriate TTB officer will be considered
misleading within the meaning of Sec. 7.122(b)(2).
(c) Evidence that claims are adequately substantiated. The
appropriate TTB officer may request that bottlers and importers provide
evidence that labeling claims are adequately substantiated at any time
within a period of five years from the time the malt beverages were
removed from the bottling premises or from customs custody, as
applicable.
Subpart M--Penalties and Compromise of Liability
Sec. 7.221 Criminal penalties.
A violation of the labeling provisions of 27 U.S.C. 205(e) is
punishable as a misdemeanor. See 27 U.S.C. 207 for the statutory
provisions relating to criminal penalties, consent decrees, and
injunctions.
Sec. 7.222 Conditions of basic permit.
A basic permit is conditioned upon compliance with the requirements
of 27 U.S.C. 205, including the labeling provisions of this part. A
willful violation of the conditions of a basic permit provides grounds
for the revocation or suspension of the permit, as applicable, as set
forth in part 1 of this chapter.
Sec. 7.223 Compromise.
Pursuant to 27 U.S.C. 207, the appropriate TTB officer is
authorized, with respect to any violation of 27 U.S.C. 205, to
compromise the liability arising with respect to such violation upon
payment of a sum not in excess of $500 for each offense, to be
collected by the appropriate TTB officer and to be
[[Page 60688]]
paid into the Treasury as miscellaneous receipts.
Subpart N--Paperwork Reduction Act
Sec. 7.231 OMB control numbers assigned under the Paperwork Reduction
Act.
(a) Purpose. This subpart displays the control numbers assigned to
information collection requirements in this part by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995,
Public Law 104-13.
(b) Chart. The following chart identifies each section in this part
that contains an information collection requirement and the OMB control
number that is assigned to that information collection requirement.
------------------------------------------------------------------------
Section where contained Current OMB Control No.
------------------------------------------------------------------------
7.21...................................... 1513-0020, 1513-0087.
7.22...................................... 1513-0020, 1513-0087, 1513-
0111.
7.24...................................... 1513-0020, 1513-0064.
7.25...................................... 1513-0020, 1513-0111.
7.27...................................... 1513-0020, 1513-0087.
7.28...................................... 1513-0122.
7.62...................................... 1513-0087.
7.63...................................... 1513-0084, 1513-0087.
7.66...................................... 1513-0085.
7.67...................................... 1513-0085.
7.81...................................... 1513-0087.
7.82...................................... 1513-0087, 1513-0121.
7.83...................................... 1513-0087, 1513-0121.
7.84...................................... 1513-0087.
7.85...................................... 1513-0087.
7.121..................................... 1513-0087.
7.122..................................... 1513-0087.
7.123..................................... 1513-0087.
7.124..................................... 1513-0087.
7.125..................................... 1513-0087.
7.126..................................... 1513-0087.
7.127..................................... 1513-0087.
7.128..................................... 1513-0087.
7.129..................................... 1513-0087.
7.130..................................... 1513-0087.
7.131..................................... 1513-0087.
7.132..................................... 1513-0087.
7.211..................................... New control number.
7.212..................................... New control number.
------------------------------------------------------------------------
0
4. Add part 14 to read as follows:
PART 14--ADVERTISING OF WINE, DISTILLED SPIRITS, AND MALT BEVERAGES
Sec.
14.0 Applicability.
Subpart A--General Provisions
14.1 Definitions.
14.2 Territorial extent.
14.3 Delegations of the Administrator's authorities.
14.4 General requirements under the Federal Alcohol Administration
Act.
14.5 Legibility of mandatory information.
14.6 Mandatory statements.
Subpart B--Rules Related to Specific Practices in Advertisements
14.11 Statements and representations in advertisements.
14.12 Regulated practices.
14.13 Prohibited practices.
14.14 Misleading statements or representations.
14.15 Additional rules for wine.
14.16 Additional rules for distilled spirits.
14.17 Additional rules for malt beverages.
Subpart C--Penalties and Compromise of Liability
14.21 Criminal penalties.
14.22 Conditions of basic permit.
14.23 Compromise.
Subpart D--Paperwork Reduction Act
14.31 OMB control numbers assigned under the Paperwork Reduction
Act.
Authority: 27 U.S.C. 205, unless otherwise noted.
Sec. 14.014.0 Applicability.
(a) General. Except as otherwise provided in paragraph (b) of this
section, the provisions of this part prescribe rules under section
105(f) of the Federal Alcohol Administration Act for the advertising of
wine, distilled spirits, and malt beverages.
(b) Malt beverages. The provisions of this part apply to the
advertising of malt beverages intended to be sold or shipped or
delivered for shipment, or otherwise introduced into or received in any
State from any place outside the State, only to the extent that the
laws or regulations of such State impose similar requirements with
respect to the advertising of malt beverages sold within that State.
Subpart A--General Provisions
Sec. 14.114.1 Definitions.
Administrator. The Administrator, Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury.
Advertisement or Advertising. The term ``advertisement'' or
``advertising'' includes any written or verbal statement, illustration,
or depiction that is in, or calculated to induce sales in, interstate
or foreign commerce, or is disseminated by mail, whether it appears in
a newspaper, magazine, trade booklet, menu, wine card, leaflet,
circular, mailer, book insert, catalog, promotional material, sales
pamphlet, internet or other electronic site or social network, or any
written, printed, graphic, or other matter (such as hang tags)
accompanying, but not firmly affixed to, the container, representations
made on shipping cases, or in any billboard, sign, or other outdoor
display, public transit card, other periodical literature, and
publication, or in a radio or television broadcast, or in any other
media. However, the term ``advertisement'' does not include:
(1) Any label, container, or packaging that is subject to the
provisions of part 4, 5 or 7 of this chapter; or
(2) Any editorial or other reading material (such as a release) in
any periodical or publication or newspaper, for the publication of
which no money or valuable consideration or a thing of value is paid or
promised, directly or indirectly, by any permittee or brewer, and which
is not written by or at the direction of a permittee or brewer.
Appropriate TTB officer. An officer or employee of the Alcohol and
Tobacco Tax and Trade Bureau (TTB) authorized to perform any function
relating to the administration or enforcement of this part by the
current version of TTB Order 1135.14, Delegation of the Administrator's
Authorities in 27 CFR part 14, Advertising of Wine, Distilled Spirits,
and Malt Beverages.
Consumer Specialty Items. Items that are designed to be carried
away by the consumer, such as nonalcoholic mixers, pouring racks, ash
trays, bottle or can openers, cork screws, shopping bags, matches,
printed recipes, pamphlets, cards, leaflets, blotters, post cards,
pencils, shirts, caps, and visors.
Container. Any can, bottle, box used to protect an internal
bladder, cask, keg, barrel or other closed receptacle, in any size or
material, that is for use in the sale of wine, distilled spirits, or
malt beverages at retail.
Distilled spirits. Ethyl alcohol, hydrated oxide of ethyl, spirits
of wine, whisky, rum, brandy, gin, and other distilled spirits,
including all dilutions and mixtures thereof, for nonindustrial use.
The term ``distilled spirits'' does not include mixtures containing
wine, bottled at 48 degrees of proof or less, if the mixture contains
more than 50 percent wine on a proof gallon basis. The term ``distilled
spirits'' also does not include products containing less than 0.5
percent alcohol by volume.
FAA Act. Federal Alcohol Administration Act.
Malt beverage. A beverage made by the alcoholic fermentation of an
infusion or decoction, or combination of both, in potable brewing
water, of malted barley with hops, or their parts, or their products,
and with or without other malted cereals, and with or without the
addition of unmalted or prepared cereals, other carbohydrates or
products prepared therefrom, and with or without the addition of carbon
dioxide, and with or without other wholesome products suitable for
human food consumption. See Sec. 7.5 of this chapter for standards
applying to the
[[Page 60689]]
use of processing methods and flavors in malt beverage production.
Permittee. Any person holding a basic permit under the FAA Act.
Person. Any individual, corporation, partnership, association,
joint-stock company, business trust, limited liability company, or
other form of business enterprise, including a receiver, trustee, or
liquidating agent, and including an officer or employee of any agency
of a State or political subdivision of a State.
Responsible advertiser. The permittee or brewer responsible for the
publication or broadcast of an advertisement.
Spirits. See Distilled spirits.
State. One of the 50 States of the United States, the District of
Columbia, or the Commonwealth of Puerto Rico.
TTB. The Alcohol and Tobacco Tax and Trade Bureau, Department of
the Treasury.
United States. The 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
Wine. Section 117(a) of the Federal Alcohol Administration Act (27
U.S.C. 211(a)) defines ``wine'' as any of the following products for
nonindustrial use that contain not less than 7 percent and not more
than 24 percent alcohol by volume:
(1) Wine as defined in section 610 and section 617 of the Revenue
Act of 1918 (26 U.S.C. 5381-5392); and
(2) Other alcoholic beverages not so defined, but made in the
manner of wine, including sparkling and carbonated wine, wine made from
condensed grape must, wine made from other agricultural products than
the juice of sound, ripe grapes, imitation wine, compounds sold as
wine, vermouth, cider, perry, and sak[eacute].
Sec. 14.214.2 Territorial extent.
The provisions of this part apply in the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
Sec. 14.314.3 Delegations of the Administrator's authorities.
Most of the regulatory authorities of the Administrator contained
in this part are delegated to ``appropriate TTB officers.'' To
determine which officers have been delegated specific authorities, see
the current version of TTB Order 1135.14, Delegation of the
Administrator's Authorities in 27 CFR part 14, Advertising of Wine,
Distilled Spirits, and Malt Beverages. You may obtain a copy of this
order by accessing the TTB website (https://www.ttb.gov) or by mailing
a request to the Alcohol and Tobacco Tax and Trade Bureau, National
Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH 45202.
Sec. 14.414.4 General requirements under the FAA Act.
(a) General. No person engaged in business as a distiller, brewer,
blender, or other producer, or as an importer or wholesaler of
distilled spirits, wine or malt beverages, or as a processor, bottler,
or warehouseman and bottler of distilled spirits, directly or
indirectly or through an affiliate, may publish or disseminate or cause
to be published or disseminated by radio or television broadcast, or in
any newspaper, periodical, or other publication, or by any sign or
outdoor advertisement, or by electronic or internet media, or any other
printed or graphic matter, any advertisement of wine, distilled
spirits, or malt beverages, if such advertising is in, or is calculated
to induce sale in, interstate or foreign commerce, or is disseminated
by mail, unless such advertisement is in conformity with the provisions
of this part.
(b) Exclusion. The provisions of this part do not apply to a
retailer or to the publisher of any newspaper, periodical, or other
publication, or to a radio or television or internet broadcast, unless
the retailer or publisher or broadcaster is engaged in business as a
distiller, brewer, blender, or other producer, or as an importer or
wholesaler of wine, distilled spirits, or malt beverages, or as a
processor, bottler, or warehouseman and bottler, of distilled spirits,
directly or indirectly, or through an affiliate.
(c) Substantiation. The substantiation requirements of this
paragraph apply to any claim made on any advertisement subject to the
requirements of this part.
(1) Reasonable basis in fact. All claims, whether implicit or
explicit, must have a reasonable basis in fact. Claims that contain
express or implied statements regarding the amount of support for the
claim (such as, ``tests prove,'' or ``studies show'') must have the
level of substantiation that is claimed. Any advertising claim that
does not have a reasonable basis in fact, or cannot be adequately
substantiated upon the request of the appropriate TTB officer, will be
considered misleading within the meaning of Sec. 14.14 (a)(2).
(2) Evidence that claims are adequately substantiated. The
appropriate TTB officer may request that the responsible advertiser
provide evidence that advertising claims are adequately substantiated
at any time within a period of five years from the time the
advertisement was last disseminated or published.
Sec. 14.514.5 Legibility of mandatory information.
(a) Statements required by this part that appear in any written,
printed, electronic, internet, or other graphic advertisement must be
in legible type of sufficient size and on a contrasting background so
as to be readable under ordinary conditions.
(b) In the case of signs, billboards, and displays that are
designed for viewing from a distance, the required name and address, or
name and other contact information (such as, telephone number, website,
or email), of the responsible advertiser may appear in lettering or
type size that is smaller than that of the other mandatory information,
provided that the name and contact information can be readily
ascertained upon closer examination of the sign, billboard, or display.
(c) Information required under this part that appears in an
advertisement in any audio-visual medium must be clear and conspicuous
and understandable to a consumer viewing or listening to the
advertisement under ordinary conditions.
(d) Information required under this part must be presented as being
clearly part of the advertisement and may not be separated in any
manner from other parts of the advertisement.
(e) If an advertisement covers two or more products, the
information required under this part that differs between the products
must appear in the advertisement separately for each product.
Sec. 14.614.6 Mandatory statements.
(a) General. Advertisements of wine, distilled spirits, and malt
beverages must include the following mandatory information.
(1) Responsible advertiser. The advertisement must display the
responsible advertiser's name, city, and State or the name and other
contact information (such as, telephone number, website, or email
address) where the responsible advertiser may be contacted.
(2) Class, type, or other designation. An advertisement must
contain a statement of the class, type, or other designation that
applies to the wine, distilled spirits, or malt beverage, and that is
required to appear on the label of the product under subpart I of part
4, 5, or 7 of this chapter. The statement must be clear and conspicuous
and be legible in accordance with Sec. 14.5.
(3) Exceptions. The following exceptions apply to the rules in
paragraphs (a)(1) and (2) of this section:
(i) If an advertisement refers to a general product line or to all
of the wine, distilled spirits, or malt beverage
[[Page 60690]]
products of one company, whether by the brand name common to all the
products in the line or by the company name, the only information
required is the name, city, and State or the name and other contact
information of the responsible advertiser in accordance with paragraph
(a)(1) of this section. However, this exception does not apply when
only one type of wine, distilled spirits, or malt beverage product is
marketed under the specific brand name advertised; and
(ii) In the case of a consumer specialty item (for example, a T-
shirt, hat, bumper sticker, or refrigerator magnet), the only
information required is the company name of the responsible advertiser
or the brand name of the wine, distilled spirits, or malt beverage
product.
(b) Additional rules for distilled spirits. The rules set forth in
this paragraph apply to distilled spirits advertisements and are in
addition to the rules specified in paragraph (a) of this section.
(1) Alcohol content--(i) Mandatory statement. The alcohol content
for distilled spirits must be stated as a percentage of alcohol by
volume in the manner set forth in Sec. 5.65 of this chapter.
(ii) Optional statement. The advertisement may also state the
alcohol content of the distilled spirits product in degrees of proof if
that information appears immediately adjacent to the percent-alcohol-
by-volume statement prescribed in paragraph (b)(1)(i) of this section.
(2) Percentage of neutral spirits and name of commodity--(i)
Production with neutral spirits. In the case of distilled spirits
(other than cordials, liqueurs, and specialties) produced by blending
or other processing, if neutral spirits were used in the production of
the spirits, the advertisement must state the percentage of neutral
spirits so used and the name of the commodity from which the neutral
spirits were distilled. The statement of percentage and the name of the
commodity must be in substantially the following form: ``__% neutral
spirits distilled from __ (insert grain, cane products, or fruit as
appropriate)''; or ``__% neutral spirits (vodka) distilled from __
(insert grain, cane products, or fruit, as appropriate)''; or ``__%
grain (cane products), (fruit) neutral spirits'', or ``__% grain
spirits.'' The statement used under this paragraph must be identical to
that on the label of distilled spirits to which the advertisement
refers.
(ii) Neutral spirits and gin produced by continuous distillation.
In the case of neutral spirits or in the case of gin produced by a
process of continuous distillation, the advertisement must state the
name of the commodity from which the neutral spirits or gin was
distilled. The statement of the name of the commodity must appear in
substantially the following form: ``Distilled from grain,'' or
``Distilled from cane products,'' or ``Distilled from fruit.'' The
statement used under this paragraph must be identical to that on the
label of distilled spirits to which the advertisement refers.
Subpart B--Rules Related to Specific Practices in Advertisements
Sec. 14.11 Statements and representations in advertisements.
(a) General. Sections 14.12 through 14.14 specify rules that apply
to advertisements for wine, distilled spirits, and malt beverages.
Additional rules that apply only to advertisements for wine, only to
advertisements for distilled spirits, or only to advertisements for
malt beverages are contained in Sec. Sec. 14.15, 14.16, and 14.17,
respectively.
(b) Statement or representation defined. For purposes of the rules
in this subpart, the term ``statement or representation'' includes any
statement, design, device, or representation, and includes pictorial or
graphic designs or representations as well as written ones. The term
``statement or representation'' includes explicit and implicit
statements and representations.
Sec. 14.12 Regulated practices.
(a) General. The practices, statements, and representations in this
section may be used on wine, distilled spirits, and malt beverage
labels only when used in compliance with this subpart.
(b) Statements inconsistent with labeling. (1) An advertisement may
not contain any statement concerning a brand or lot of the product that
is inconsistent with any statement appearing on the label.
(2) Any label depicted on a container in an advertisement must be
covered by a certificate of label approval (COLA) or certificate of
exemption from label approval obtained pursuant to part 4, 5, or 7 of
this chapter, except that malt beverage labels not required to be
covered by a COLA in accordance with the rules in Sec. 7.21 of this
chapter may also appear on advertisements. In all cases, the label
appearing on an advertisement must be identical to that appearing on
the container.
(c) Comparative advertising in general. Comparative advertising for
a wine, distilled spirits, or malt beverage may not be disparaging of a
competitor's product and may not deceive or mislead the consumer.
(1) Taste tests. Taste test results may appear in an advertisement
comparing competitors' products, provided that:
(i) The results are not disparaging, deceptive, or likely to
mislead the consumer;
(ii) The taste test procedure used must meet scientifically
accepted procedures. An example of a scientifically accepted procedure
is outlined in the Manual on Sensory Testing Methods, ASTM Special
Technical Publication 434, published by the American Society for
Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania
19103 (ASTM, 1968, Library of Congress Catalog Card Number 68-15545);
and
(iii) A statement must appear in the advertisement providing the
name and address of the testing administrator.
(2) [Reserved]
Sec. 14.13 Prohibited practices.
An advertisement may not contain any of the following:
(a) Any statement or representation that is obscene or indecent;
(b) Any statement or representation that is false or misleading; or
(c) Any subliminal or other deceptive technique or device that
conveys, or attempts to convey, a message to a person by means of
images or sounds of a very brief nature that cannot be perceived at a
normal level of awareness.
Sec. 14.14 Misleading statements or representations.
(a) General prohibition--(1) Misleading statements or
representations. No statement or representation, irrespective of
falsity, that is misleading to consumers as to the age, origin,
identity, or other characteristics of the wine, distilled spirits, or
malt beverage, or with regard to any other material factor may appear
on an advertisement.
(2) Ways in which statements or representations may be misleading.
(i) A statement or representation is prohibited, irrespective of
falsity, if it directly creates a misleading impression, or if it does
so indirectly through ambiguity, omission, inference, or by the
addition of irrelevant scientific, or technical matter. For example, an
otherwise truthful statement may be misleading because of the omission
of material information, the disclosure of which is necessary to
prevent the statement from being misleading.
(ii) As set forth in Sec. 14.4(c), all claims, whether implicit or
explicit, must have a reasonable basis in fact. Any claim on an
advertisement that does not have a reasonable basis in fact, or cannot
be
[[Page 60691]]
adequately substantiated upon the request of the appropriate TTB
officer, is considered misleading.
(b) Disparaging statements. False or misleading statements that
explicitly or implicitly disparage a competitor's product are
prohibited.
(1) Examples. (i) An example of an explicit statement that falsely
disparages a competitor's product is ``Brand X is not aged in oak
barrels,'' when such statement is not true.
(ii) An example of an implicit statement that disparages
competitor's products in a misleading fashion is ``We do not add
arsenic to our distilled spirits,'' when such a claim may lead
consumers to falsely believe that other distillers do add arsenic to
their distilled spirits.
(2) This paragraph does not prevent truthful and accurate
comparisons between products (such as ``Our wine contains more
strawberries than Brand X'') or statements of opinion (such as ``We
think our beer tastes better than any other beer on the market'').
(c) Analyses, standards, or tests. Any statement, or representation
of or relating to analyses, standards, or tests, whether or not it is
true, that is likely to mislead the consumer is prohibited. An example
of such a misleading statement is ``tested and approved by our research
laboratories'' if the testing and approval does not in fact have any
significance;
(d) Guarantees. Any statement or representation relating to
guarantees is prohibited if the appropriate TTB officer finds it is
likely to mislead the consumer. However, money-back guarantees are not
prohibited.
(e) Government authority. Any statement or representation that
misleads the consumer to believe that the wine, distilled spirits, or
malt beverage is produced, blended, bottled, packed, or sold under
Government authority is prohibited, except that:
(1) A municipal, State, or Federal permit number may appear in the
advertisement, but the permit number may not be accompanied by any
additional statement relating to it; and
(2) Such a statement may appear in an advertisement for distilled
spirits if it conforms to the statement permitted in subpart E of part
5 of this chapter for labels of distilled spirits products.
(f) Cross-commodity claims. (1) An advertisement may not contain a
statement or representation that tends to create the false or
misleading impression that a product is a different commodity (as
defined in paragraph (f)(2) of this section), or that it contains
another commodity. For example, the use of the name of a class or type
designation recognized in part 4 or 5 of this chapter is prohibited on
a malt beverage advertisement, if the use of that name creates a
misleading impression as to the identity of the product. This
prohibition includes the use of homophones or coined words that
simulate or imitate a class or type designation. This paragraph does
not prohibit the following on advertisements:
(i) A truthful and accurate statement of alcohol content;
(ii) The use of a brand name of a wine or distilled spirits product
as a malt beverage brand name, of a distilled spirits or malt beverage
product as a wine brand name, or of a wine or malt beverage product as
a distilled spirits brand name, provided that the overall advertisement
does not create a misleading impression about the identity of the
product;
(iii) The use of a wine, distilled spirits, or malt beverage
cocktail name as a brand name or a distinctive or fanciful name of
another commodity's product, provided that a statement of composition,
in accordance with part 4, 5, or 7 of this chapter, as appropriate,
appears in the same field of vision as the brand name or the
distinctive or fanciful name and the overall advertisement does not
create a misleading impression about the identity of the product;
(iv) The use of truthful and accurate statements about the
production of the product, as part of a statement of composition or
otherwise, such as ``finished in whisky barrels,'' ``fermented with
rye,'' or ``Beer brewed with chardonnay grapes,'' so long as such
statements do not create a misleading impression as to the identity of
the product; or
(v) The use of terms that compare a product or products of one
commodity to a product or products of a different commodity without
creating a misleading impression as to the identity of the product.
(2) When used in this paragraph, ``commodity'' means wine,
distilled spirits, or malt beverages.
(g) Representations of the armed forces or flags. Advertisements
may not show an image of any government's flag or any representation
related to the armed forces of the United States if the representation,
standing alone or considered together with any additional language or
symbols, creates an impression that the product was endorsed by, made
by, used by, or made under the supervision of the government
represented by that flag or by the armed forces of the United States.
This section does not prohibit the use of a flag as part of a claim of
American origin or another country of origin.
(h) Government seals. Advertisements may not contain any government
seal or other insignia that is likely to mislead the consumer to
believe that the product has been endorsed by, made by, used by, or
produced for, under the supervision of, or in accordance with the
specification of that government.
(i) Health-related statements--(1) Definitions. When used in this
section, the following terms have the meaning indicated:
(i) Health-related statement. ``Health-related statement'' means
any statement related to health (other than the health warning
statement required under part 16 of this chapter) and includes any
statement of a curative or therapeutic nature that, expressly or by
implication, suggest a relationship between the consumption of alcohol,
a wine, distilled spirits, or malt beverage product, or any substance
found within such a product, and health benefits or effects on health.
The term includes both specific health claims and general references to
alleged health benefits or effects on health associated with the
consumption of alcohol, a wine, distilled spirits, or malt beverage
product, or any substance found within such a product, as well as
health-related directional statements. The term also includes
statements and claims that imply that a physical or psychological
sensation results from consuming the wine, distilled spirits, or malt
beverage product, as well as statements and claims of nutritional value
(for example, statements of vitamin content). Numerical statements of
caloric, carbohydrate, protein, and fat content of the product do not
constitute claims of nutritional value.
(ii) Specific health claim. ``Specific health claim'' means a type
of health-related statement that, expressly or by implication,
characterizes the relationship of alcohol, a wine, distilled spirits,
or malt beverage product, or any substance found within such a product,
to a disease or health-related condition. Implied specific health
claims include statements, symbols, vignettes, or other forms of
communication that suggest, within the context in which they are
presented, that a relationship exists between alcohol, a wine,
distilled spirits or malt beverage product, or any substance found
within such a product, and a disease or health-related condition.
(iii) Health-related directional statement. ``Health-related
directional statement'' means a type of health-related statement that
directs or refers consumers to a third party or other
[[Page 60692]]
source for information regarding the effects on health of alcohol or
consumption of wine, distilled spirits, or malt beverages.
(2) Rules for advertising--(i) Health-related statements. In
general, an advertisement for a wine, distilled spirits, or malt
beverage product may not contain any health-related statement that is
untrue in any particular or tends to create a misleading impression as
to the effects on health of alcohol consumption. TTB will evaluate such
statements on a case-by-case basis and may require as part of the
health-related statement a disclaimer or some other qualifying
statement to dispel any misleading impression conveyed by the health-
related statement. Such a disclaimer or other qualifying statement must
appear as prominently as the health-related statement.
(ii) Specific health claims. A specific health claim will not be
considered misleading if it is truthful and adequately substantiated by
scientific or medical evidence; it is sufficiently detailed and
qualified with respect to the categories of individuals to whom the
claim applies; it adequately discloses the health risks associated with
both moderate and heavier levels of alcohol consumption; and it
outlines the categories of individuals for whom any levels of alcohol
consumption may cause health risks. This information must appear as
part of the specific health claim and as prominently as the specific
health claim.
(iii) Health-related directional statements. A health-related
directional statement is presumed misleading unless it--
(A) Directs consumers in a neutral or other non-misleading manner
to a third party or other source for balanced information regarding the
effects on health of alcohol or wine, distilled spirits, or malt
beverage consumption; and
(B)(1) Includes as part of the health-related directional statement
the following disclaimer: ``This statement should not encourage you to
drink or to increase your alcohol consumption for health reasons''; or
(2) Includes as part of the health-related directional statement,
and as prominently as the health-related directional statement, some
other qualifying statement that the appropriate TTB officer finds is
sufficient to dispel any misleading impression conveyed by the health-
related directional statement.
Sec. 14.15 Additional rules for wine.
The rules in this section apply to advertisements for wine and are
in addition to the rules that apply to all advertisements as set forth
in Sec. Sec. 14.12 through 14.14.
(a) Statements in advertisements. An advertisement for wine may not
contain:
(1) Any statement of bonded wine cellar and bonded winery numbers,
unless stated immediately adjacent to the name and address of the
person operating the wine cellar or winery. A statement of bonded wine
cellar and bonded winery numbers may appear in the following form:
``Bonded Wine Cellar No. __,'' ``Bonded Winery No. __,'' ``B.W.C. No.
__,'' ``B.W. No. __.'' No additional reference to the statement may be
made, and the statement may not be used in a way that might give the
impression that the wine has been made or matured under government
supervision or in accordance with government specifications or
standards; or
(2) Any statement, design, device, or representation that relates
to alcohol content or that tends to create the impression that a wine
is intoxicating or has intoxicating qualities, other than a truthful
and accurate statement of alcohol content.
(b) Statement of age. Subject to paragraph (c) of this section, an
advertisement for wine may not contain any statement of age or other
representation relative to age (including words, symbols, or other
devices in any brand name or mark), except for:
(1) Vintage dates on vintage wine, in accordance with Sec. 4.95 of
this chapter;
(2) References relating to methods of wine production involving
storage or aging which are used for the advertised wine; and
(3) Use of the word ``old'' as part of a brand name.
(c) Statement of bottling date. For purposes of paragraph (b) of
this section, a statement of the bottling date of a wine will not be
deemed to be a representation relative to age, provided that the
statement appears in the advertisement without undue emphasis in the
following form: ``Bottled in __'' (inserting the year in which the wine
was bottled).
(d) Miscellaneous date statements. Except in the case of vintage
dates and bottling dates as provided in paragraphs (b)(1) and (c) of
this section, an advertisement of wine may not bear any date unless, in
addition to the date and immediately adjacent to the date and in the
same size and kind of printing, a statement of the significance or
relevance of the date is provided, such as ``established'' or ``founded
in.'' If the date refers to the date of establishment of any business
or brand name, the date and its accompanying statement must appear
immediately adjacent to the name of the person, company, or brand name
to which it relates if the appropriate TTB officer finds that this is
necessary in order to prevent confusion as to the person, company, or
brand name to which the establishment date applies.
(e) Statements indicative of origin. An advertisement for wine may
not contain any statement or representation that indicates or implies
an origin other than the true place of origin of the wine, except for
brand names of geographical significance, when used in accordance with
Sec. 4.64(c) of this chapter, and semi-generic designations, when used
in accordance with Sec. 4.174 of this chapter.
Sec. 14.16 Additional rules for distilled spirits.
The rules in this section apply to advertisements for distilled
spirits products and are in addition to the rules that apply to all
advertisements as set forth in Sec. Sec. 14.12 through 14.14.
(a) Statements in advertisements. An advertisement for a distilled
spirits product may not contain:
(1) The words ``bond,'' ``bonded,'' ``bottled in bond,'' or ``aged
in bond,'' or any other phrase containing ``bond'' or ``bonded,''
unless those words or phrases appear in the advertisement in the same
manner and form as prescribed in Sec. 5.88 of this chapter for a label
for the distilled spirits product in question;
(2) A statement regarding multiple distillations, such as ``double
distilled'' or ''triple distilled,'' unless used in accordance with the
rules in Sec. 5.89 of this chapter; or
(3) The word ``pure'' unless it:
(i) Refers to a particular ingredient used in the production of the
distilled spirits, and is a truthful representation about that
ingredient;
(ii) Is part of the bona fide name of a permittee or retailer for
whom the distilled spirits are bottled; or
(iii) Is part of the bona fide name of the permittee who bottled
the distilled spirits.
(b) Statements of age. (1) Except at provided in paragraph (b)(2)
of this section, an advertisement for a distilled spirits product may
not contain any statement, design, or device, directly or by
implication, concerning age or maturity of any brand or lot of
distilled spirits, unless a statement of age in accordance with Sec.
5.73 of this chapter appears on the label of the advertised product.
When any such statement, design, or device concerning age or maturity
is contained in an advertisement, it must include (immediately adjacent
to it and with substantially equal conspicuousness) all parts of the
statement concerning age
[[Page 60693]]
and percentages required to appear on a label of the product under part
5 of this chapter.
(2) An advertisement for any whisky or brandy (except immature
brandies) for which a statement of age is not required on a label, or
an advertisement for any rum or Tequila that has been aged for four
years or more, may contain an inconspicuous, general representation as
to age or maturity, or other similar representations, even though a
specific age statement does not appear on the label of the advertised
product or in the advertisement itself.
(c) Place of origin and producer or processor. An advertisement for
a distilled spirits product may not contain any statement, design,
device, or representation, stating or implying that the distilled
spirits were manufactured in, or imported from, a country or place
other than their actual country or place of origin, or that the
distilled spirits were produced or processed by a person who was not in
fact the actual producer or processor.
Sec. 14.17 Additional rules for malt beverages.
The rules in this section apply to advertisements for malt
beverages and are in addition to the prohibited practice rules that
apply to for all wine, distilled spirits, or malt beverage
advertisements as set forth in Sec. Sec. 14.12 through14.14.
(a) ``Bonded'' and other terms. An advertisement may not contain
the words ``bonded,'' ``bottled in bond,'' ``aged in bond,'' ``bonded
age,'' ``bottled under Customs supervision,'' or other phrases
containing these or synonymous terms that may create a misleading
impression as to governmental supervision over production or bottling.
(b) Statement of class. An advertisement may not identify a product
containing less than one-half of one percent (0.5%) of alcohol by
volume with the designation ``beer,'' ``lager beer,'' ``lager,''
``ale,'' ``porter,'' or ``stout,'' or with any other class or type
designation commonly applied to fermented malt beverages containing
one-half of one percent or more of alcohol by volume. In addition, an
advertisement may identify a product with the class designation
``ale,'' ``porter,'' or ``stout'' only if the product was fermented at
comparatively high temperature, was produced without the use of
coloring or flavoring materials (other than those recognized in
standard brewing practices), and possesses the characteristics
generally attributed to ale, porter, or stout. Any statement of class
or designation used in an advertisement should be identical to the
designation on the label.
(c) Strength claims--(1) General. For purposes of this section, the
term ``strength claim'' means a statement that directly or indirectly
makes a claim about the alcohol content of the product. This section
does not apply to the use of the terms ``low alcohol,'' ``reduced
alcohol,'' ``non-alcoholic,'' and ``alcohol-free'' in accordance with
Sec. 7.65 of this chapter; to claims about low alcohol content in
general; or to the use of an alcohol content statement in accordance
with Sec. 7.65 of this chapter.
(2) Prohibition. The use of a strength claim on malt beverage
advertisements is prohibited if it misleads consumers by implying that
products should be purchased or consumed on the basis of higher alcohol
strength. Examples of strength claims are ``full strength,'' ``extra
strength,'' ``high test,'' and ``high proof.''
Subpart C--Penalties and Compromise of Liability
Sec. 14.21 Criminal penalties.
A violation of the advertising provisions of 27 U.S.C. 205(f) is
punishable as a misdemeanor. See 27 U.S.C. 207 for the statutory
provisions relating to criminal penalties, consent decrees, and
injunctions.
Sec. 14.22 Conditions of basic permit.
A basic permit is conditioned upon compliance with the requirements
of 27 U.S.C. 205, including the advertising provisions of this part. A
willful violation of the conditions of a basic permit provides grounds
for the revocation or suspension of the permit, as applicable, as set
forth in part 1 of this chapter.
Sec. 14.23 Compromise.
Pursuant to 27 U.S.C. 207, the appropriate TTB officer is
authorized, with respect to any violation of 27 U.S.C. 205, to
compromise the liability arising with respect to such violation upon
payment of a sum not in excess of $500 for each offense, to be
collected by the appropriate TTB officer and to be paid into the
Treasury as miscellaneous receipts.
Subpart D--Paperwork Reduction Act
Sec. 14.31 OMB control numbers assigned under the Paperwork Reduction
Act.
(a) Purpose. This subpart displays the control numbers assigned to
information collection requirements in this part by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995,
Public Law 104-13.
(b) Chart. The following chart identifies each section in this part
that contains an information collection requirement and the OMB control
number that is assigned to that information collection requirement.
------------------------------------------------------------------------
Section where contained Current OMB Control No.
------------------------------------------------------------------------
14.4...................................... New information collection.
14.6...................................... 1513-0087.
14.12..................................... 1513-0087.
14.14..................................... 1513-0087.
14.15..................................... 1513-0087.
14.16..................................... 1513-0087.
14.17..................................... 1513-0087.
------------------------------------------------------------------------
PART 19--DISTILLED SPIRITS PLANTS
0
5. The authority citation continues to read as follows:
Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-
5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114,
5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181,
5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236,
5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505,
5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109,
6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303,
9304, 9306.
0
6. In Sec. 19.356, revise paragraphs (c) and (d) to read as follows:
Sec. 19.356 Alcohol content and fill.
* * * * *
(c) Variations in alcohol content. Variations in alcohol content
may not exceed 0.3 percent alcohol by volume above or below the alcohol
content stated on the label.
(d) Example. Under paragraph (c) of this section, a product labeled
as containing 40 percent alcohol by volume would be acceptable if the
test for alcohol content found that it contained no less than 39.7
percent alcohol by volume and no more than 40.3 percent alcohol by
volume.
Signed: August 28, 2018.
John J. Manfreda,
Administrator.
Approved: November 1, 2018.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade and Tariff Policy).
[FR Doc. 2018-24446 Filed 11-23-18; 8:45 am]
BILLING CODE-P
