Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling Act, 2228-2229 [2023-00594]

Download as PDF 2228 Federal Register / Vol. 88, No. 9 / Friday, January 13, 2023 / Rules and Regulations representations without the label having to bear an age statement. * * * * * Subpart I—Standards of Identity for Distilled Spirits ■ 3. Section 5.145 is amended by: a. In paragraph (b), removing the words ‘‘(c)(1) through (12)’’ and adding, in their place, the words ‘‘(c)(1) through (13); ■ b. Revising paragraph (c) introductory text; ■ c. Redesignating paragraphs (c)(7) through (12) as (c)(8) through (13); and ■ d. Adding new paragraph (c)(7). ■ § 5.145 Brandy. * * * * * (c) Types. Paragraphs (c)(1) through (13) of this section set out the types of brandy and the standards for each type. Type Standards * (7) Singani ........ * * * * * * Brandy derived from grape/s that is manufactured in Bolivia in accordance with the laws and regulations of Bolivia governing the manufacture of Singani for consumption in that country. * * * * ACTION: 4. In § 5.235(c), revise the third sentence to read as follows: SUMMARY: § 5.235 * Notification of civil monetary penalty adjustment. Subpart N—Advertising of Distilled Spirits ■ Prohibited practices. * * * * * (c) * * * An advertisement for any whisky or brandy (except immature brandies, pomace brandy, marc brandy, Pisco brandy, Singani brandy, and grappa brandy) which is not required to bear a statement of age on the label or an advertisement for any rum or agave spirits, which has been aged for not less than 4 years may, however, contain inconspicuous, general representations as to age, maturity or other similar representations even though a specific age statement does not appear on the label of the advertised product and in the advertisement itself. * * * * * Signed: December 20, 2022. Mary G. Ryan, Administrator. This document informs the public that the maximum penalty for violations of the Alcoholic Beverage Labeling Act (ABLA) is being adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. Prior to the publication of this document, any person who violated the provisions of the ABLA was subject to a civil penalty of not more than $22,979, with each day constituting a separate offense. This document announces that this maximum penalty is being increased to $24,759. DATES: The new maximum civil penalty for violations of the ABLA takes effect on January 13, 2023, and applies to penalties that are assessed after that date. FOR FURTHER INFORMATION CONTACT: Vonzella C. Johnson, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005; (202) 508–0413. SUPPLEMENTARY INFORMATION: Approved: December 20, 2022. Thomas C. West, Jr. Deputy Assistant Secretary (Tax Policy). [FR Doc. 2022–28374 Filed 1–12–23; 8:45 am] Background BILLING CODE 4810–31–P Statutory Authority for Federal Civil Monetary Penalty Inflation Adjustments DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 16 lotter on DSK11XQN23PROD with RULES1 The revisions and addition read as follows: [Docket No. TTB–2023–0001; Notice No. 220] Civil Monetary Penalty Inflation Adjustment—Alcoholic Beverage Labeling Act Alcohol and Tobacco Tax and Trade Bureau, Treasury. AGENCY: VerDate Sep<11>2014 16:24 Jan 12, 2023 Jkt 259001 The Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), Public Law 101–410, 104 Stat. 890, 28 U.S.C. 2461 note, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114–74, section 701, 129 Stat. 584, requires the regular adjustment and evaluation of civil monetary penalties to maintain their deterrent effect and helps to ensure that penalty amounts imposed by the Federal Government are properly accounted for and collected. A ‘‘civil PO 00000 Frm 00054 Fmt 4700 Sfmt 4700 * * monetary penalty’’ is defined in the Inflation Adjustment Act as any penalty, fine, or other such sanction that is: (1) For a specific monetary amount as provided by Federal law, or has a maximum amount provided for by Federal law; (2) assessed or enforced by an agency pursuant to Federal law; and (3) assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts. The Inflation Adjustment Act, as amended, requires agencies to adjust civil monetary penalties by the inflation adjustment described in section 5 of the Inflation Adjustment Act. The amended Inflation Adjustment Act also provides that any increase in a civil monetary penalty shall apply only to civil monetary penalties, including those whose associated violation predated such an increase, which are assessed after the date the increase takes effect. The Inflation Adjustment Act, as amended, provides that the inflation adjustment does not apply to civil monetary penalties under the Internal Revenue Code of 1986 or the Tariff Act of 1930. Alcoholic Beverage Labeling Act The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the Federal Alcohol Administration Act (FAA Act) pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). In addition, the Secretary of the Treasury has delegated certain administrative and enforcement authorities to TTB through Treasury Order 120–01. The FAA Act contains the Alcoholic Beverage Labeling Act (ABLA) of 1988, Public Law 100–690, 27 U.S.C. 213– 219a, which was enacted on November 18, 1988. Section 204 of the ABLA, codified in 27 U.S.C. 215, requires that a health warning statement appear on the labels of all containers of alcoholic E:\FR\FM\13JAR1.SGM 13JAR1 Federal Register / Vol. 88, No. 9 / Friday, January 13, 2023 / Rules and Regulations beverages manufactured, imported, or bottled for sale or distribution in the United States, as well as on containers of alcoholic beverages that are manufactured, imported, bottled, or labeled for sale, distribution, or shipment to members or units of the U.S. Armed Forces, including those located outside the United States. The health warning statement requirement applies to containers of alcoholic beverages manufactured, imported, or bottled for sale or distribution in the United States on or after November 18, 1989. The statement reads as follows: GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems. lotter on DSK11XQN23PROD with RULES1 Section 204 of the ABLA also specifies that the Secretary of the Treasury shall have the power to ensure the enforcement of the provisions of the ABLA and issue regulations to carry them out. In addition, section 207 of the ABLA, codified in 27 U.S.C. 218, provides that any person who violates the provisions of the ABLA is subject to a civil penalty of not more than $10,000, with each day constituting a separate offense. Most of the civil monetary penalties administered by TTB are imposed by the Internal Revenue Code of 1986, and thus are not subject to the inflation adjustment mandated by the Inflation Adjustment Act. The only civil monetary penalty enforced by TTB that is subject to the inflation adjustment is the penalty imposed by the ABLA at 27 U.S.C. 218. TTB Regulations The TTB regulations implementing the ABLA are found in 27 CFR part 16, and the regulations implementing the Inflation Adjustment Act with respect to the ABLA penalty are found in 27 CFR 16.33. This section indicates that, in accordance with the ABLA, any person who violates the provisions of this part is subject to a civil penalty of not more than $10,000. Further, pursuant to the provisions of the Inflation Adjustment Act, as amended, this civil penalty is subject to periodic cost-of-living adjustments. Accordingly, any person who violates the provisions of 27 CFR part 16 is subject to a civil penalty of not more than the amount listed at https://www.ttb.gov/regulation_ guidance/ablapenalty.html. Each day constitutes a separate offense. To adjust the penalty, § 16.33(b) indicates that TTB will provide notice VerDate Sep<11>2014 16:24 Jan 12, 2023 Jkt 259001 in the Federal Register and at the website mentioned above of cost-ofliving adjustments to the civil penalty for violations of 27 CFR part 16. Penalty Adjustment In this document, TTB is publishing its yearly adjustment to the maximum ABLA penalty, as required by the amended Inflation Adjustment Act. As mentioned earlier, the ABLA contains a maximum civil monetary penalty. For such penalties, section 5 of the Inflation Adjustment Act indicates that the inflation adjustment is determined by increasing the maximum penalty by the cost-of-living adjustment. The cost-of-living adjustment means the percentage increase (if any) between the Consumer Price Index for all-urban consumers (CPI–U) for the October preceding the date of the adjustment and the prior year’s October CPI–U. The CPI–U in October 2021 was 276.589, and the CPI–U in October 2022 was 298.012. The rate of inflation between October 2021 and October 2022 was therefore 7.745 percent. When applied to the current ABLA penalty of $22,979, this rate of inflation yields a raw (unrounded) inflation adjustment of $1,779.72355. Rounded to the nearest dollar, the inflation adjustment is $1,780, meaning that the new maximum civil penalty for violations of the ABLA will be $24,759. The new maximum civil penalty will apply to all penalties that are assessed after January 13, 2023. TTB has also updated its web page at https:// www.ttb.gov/regulation_guidance/ ablapenalty.html to reflect the adjusted penalty. Dated: January 9, 2023. Amy R. Greenberg, Director, Regulations and Rulings Division. [FR Doc. 2023–00594 Filed 1–12–23; 8:45 am] BILLING CODE 4810–31–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Parts 501, 510, 535, 536, 539, 541, 542, 544, 546, 547, 548, 549, 551, 552, 553, 560, 561, 566, 570, 576, 578, 583, 584, 588, 589, 590, 592, 594, 597, and 598 Inflation Adjustment of Civil Monetary Penalties Office of Foreign Assets Control, Treasury. ACTION: Final rule. AGENCY: The Department of the Treasury’s Office of Foreign Assets SUMMARY: PO 00000 Frm 00055 Fmt 4700 Sfmt 4700 2229 Control (OFAC) is issuing this final rule to adjust certain civil monetary penalties for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. DATES: This rule is effective January 13, 2023. FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, 202–622–2480; Assistant Director for Regulatory Affairs, 202–622–4855; Assistant Director for Sanctions Compliance & Evaluation, 202–622– 2490. SUPPLEMENTARY INFORMATION: Electronic Availability This document and additional information concerning OFAC are available from OFAC’s website (www.treas.gov/ofac). Background Section 4 of the Federal Civil Penalties Inflation Adjustment Act (1990 Pub. L. 101–410, 104 Stat. 890; 28 U.S.C. 2461 note), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114–74, 129 Stat. 599, 28 U.S.C. 2461 note) (the FCPIA Act), requires each federal agency with statutory authority to assess civil monetary penalties (CMPs) to adjust CMPs annually for inflation according to a formula described in section 5 of the FCPIA Act. One purpose of the FCPIA Act is to ensure that CMPs continue to maintain their deterrent effect through periodic cost-of-living based adjustments. OFAC has adjusted its CMPs eight times since the Federal Civil Penalties Inflation Adjustment Act Improvements Act went into effect on November 2, 2015: an initial catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016); an additional initial catch-up adjustment related to CMPs for failure to comply with a requirement to furnish information, the late filing of a required report, and failure to maintain records (‘‘recordkeeping CMPs’’) that were inadvertently omitted from the August 1, 2016 initial catch-up adjustment on October 5, 2020 (85 FR 54911, September 3, 2020); and annual adjustments on February 10, 2017 (82 FR 10434, February 10, 2017); March 19, 2018 (83 FR 11876, March 19, 2018); June 14, 2019 (84 FR 27714, June 14, 2019); April 9, 2020 (85 FR 19884, April 9, 2020); March 17, 2021 (86 FR 14534, March 17, 2021); and February 9, 2022 (87 FR 7369, February 9, 2022). E:\FR\FM\13JAR1.SGM 13JAR1

Agencies

[Federal Register Volume 88, Number 9 (Friday, January 13, 2023)]
[Rules and Regulations]
[Pages 2228-2229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00594]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 16

[Docket No. TTB-2023-0001; Notice No. 220]


Civil Monetary Penalty Inflation Adjustment--Alcoholic Beverage 
Labeling Act

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

ACTION: Notification of civil monetary penalty adjustment.

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

SUMMARY: This document informs the public that the maximum penalty for 
violations of the Alcoholic Beverage Labeling Act (ABLA) is being 
adjusted in accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended. Prior to the publication of this 
document, any person who violated the provisions of the ABLA was 
subject to a civil penalty of not more than $22,979, with each day 
constituting a separate offense. This document announces that this 
maximum penalty is being increased to $24,759.

DATES: The new maximum civil penalty for violations of the ABLA takes 
effect on January 13, 2023, and applies to penalties that are assessed 
after that date.

FOR FURTHER INFORMATION CONTACT: Vonzella C. Johnson, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW, Box 12, Washington, DC 20005; (202) 508-0413.

SUPPLEMENTARY INFORMATION:

Background

Statutory Authority for Federal Civil Monetary Penalty Inflation 
Adjustments

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (the 
Inflation Adjustment Act), Public Law 101-410, 104 Stat. 890, 28 U.S.C. 
2461 note, as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, Public Law 114-74, section 
701, 129 Stat. 584, requires the regular adjustment and evaluation of 
civil monetary penalties to maintain their deterrent effect and helps 
to ensure that penalty amounts imposed by the Federal Government are 
properly accounted for and collected. A ``civil monetary penalty'' is 
defined in the Inflation Adjustment Act as any penalty, fine, or other 
such sanction that is: (1) For a specific monetary amount as provided 
by Federal law, or has a maximum amount provided for by Federal law; 
(2) assessed or enforced by an agency pursuant to Federal law; and (3) 
assessed or enforced pursuant to an administrative proceeding or a 
civil action in the Federal courts.
    The Inflation Adjustment Act, as amended, requires agencies to 
adjust civil monetary penalties by the inflation adjustment described 
in section 5 of the Inflation Adjustment Act. The amended Inflation 
Adjustment Act also provides that any increase in a civil monetary 
penalty shall apply only to civil monetary penalties, including those 
whose associated violation predated such an increase, which are 
assessed after the date the increase takes effect.
    The Inflation Adjustment Act, as amended, provides that the 
inflation adjustment does not apply to civil monetary penalties under 
the Internal Revenue Code of 1986 or the Tariff Act of 1930.

Alcoholic Beverage Labeling Act

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the 
Federal Alcohol Administration Act (FAA Act) pursuant to section 
1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 
531(d). In addition, the Secretary of the Treasury has delegated 
certain administrative and enforcement authorities to TTB through 
Treasury Order 120-01.
    The FAA Act contains the Alcoholic Beverage Labeling Act (ABLA) of 
1988, Public Law 100-690, 27 U.S.C. 213-219a, which was enacted on 
November 18, 1988. Section 204 of the ABLA, codified in 27 U.S.C. 215, 
requires that a health warning statement appear on the labels of all 
containers of alcoholic

[[Page 2229]]

beverages manufactured, imported, or bottled for sale or distribution 
in the United States, as well as on containers of alcoholic beverages 
that are manufactured, imported, bottled, or labeled for sale, 
distribution, or shipment to members or units of the U.S. Armed Forces, 
including those located outside the United States.
    The health warning statement requirement applies to containers of 
alcoholic beverages manufactured, imported, or bottled for sale or 
distribution in the United States on or after November 18, 1989. The 
statement reads as follows:

    GOVERNMENT WARNING: (1) According to the Surgeon General, women 
should not drink alcoholic beverages during pregnancy because of the 
risk of birth defects. (2) Consumption of alcoholic beverages 
impairs your ability to drive a car or operate machinery, and may 
cause health problems.

    Section 204 of the ABLA also specifies that the Secretary of the 
Treasury shall have the power to ensure the enforcement of the 
provisions of the ABLA and issue regulations to carry them out. In 
addition, section 207 of the ABLA, codified in 27 U.S.C. 218, provides 
that any person who violates the provisions of the ABLA is subject to a 
civil penalty of not more than $10,000, with each day constituting a 
separate offense.
    Most of the civil monetary penalties administered by TTB are 
imposed by the Internal Revenue Code of 1986, and thus are not subject 
to the inflation adjustment mandated by the Inflation Adjustment Act. 
The only civil monetary penalty enforced by TTB that is subject to the 
inflation adjustment is the penalty imposed by the ABLA at 27 U.S.C. 
218.

TTB Regulations

    The TTB regulations implementing the ABLA are found in 27 CFR part 
16, and the regulations implementing the Inflation Adjustment Act with 
respect to the ABLA penalty are found in 27 CFR 16.33. This section 
indicates that, in accordance with the ABLA, any person who violates 
the provisions of this part is subject to a civil penalty of not more 
than $10,000. Further, pursuant to the provisions of the Inflation 
Adjustment Act, as amended, this civil penalty is subject to periodic 
cost-of-living adjustments. Accordingly, any person who violates the 
provisions of 27 CFR part 16 is subject to a civil penalty of not more 
than the amount listed at https://www.ttb.gov/regulation_guidance/ablapenalty.html. Each day constitutes a separate offense.
    To adjust the penalty, Sec.  16.33(b) indicates that TTB will 
provide notice in the Federal Register and at the website mentioned 
above of cost-of-living adjustments to the civil penalty for violations 
of 27 CFR part 16.

Penalty Adjustment

    In this document, TTB is publishing its yearly adjustment to the 
maximum ABLA penalty, as required by the amended Inflation Adjustment 
Act.
    As mentioned earlier, the ABLA contains a maximum civil monetary 
penalty. For such penalties, section 5 of the Inflation Adjustment Act 
indicates that the inflation adjustment is determined by increasing the 
maximum penalty by the cost-of-living adjustment. The cost-of-living 
adjustment means the percentage increase (if any) between the Consumer 
Price Index for all-urban consumers (CPI-U) for the October preceding 
the date of the adjustment and the prior year's October CPI-U.
    The CPI-U in October 2021 was 276.589, and the CPI-U in October 
2022 was 298.012. The rate of inflation between October 2021 and 
October 2022 was therefore 7.745 percent. When applied to the current 
ABLA penalty of $22,979, this rate of inflation yields a raw 
(unrounded) inflation adjustment of $1,779.72355. Rounded to the 
nearest dollar, the inflation adjustment is $1,780, meaning that the 
new maximum civil penalty for violations of the ABLA will be $24,759.
    The new maximum civil penalty will apply to all penalties that are 
assessed after January 13, 2023. TTB has also updated its web page at 
https://www.ttb.gov/regulation_guidance/ablapenalty.html to reflect the 
adjusted penalty.

    Dated: January 9, 2023.
Amy R. Greenberg,
Director, Regulations and Rulings Division.
[FR Doc. 2023-00594 Filed 1-12-23; 8:45 am]
BILLING CODE 4810-31-P
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