Alcohol and Tobacco Tax and Trade Bureau – Federal Register Recent Federal Regulation Documents

As part of our continuing effort to reduce paperwork and respondent burden, and as required by the Paperwork Reduction Act of 1995, we invite comments on the continuing or proposed information collections listed below in this document.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to establish the 1,421.8-acre ``Comptche'' American viticultural area (AVA) in Mendocino County, California. The proposed AVA is located entirely within the boundaries of the existing North Coast AVA, but the petitioner requests excluding the proposed AVA from the North Coast AVA due to significant differences in distinguishing features. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on these proposals.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to establish the approximately 4,000-acre ``Crystal Springs of Napa Valley'' American viticultural area (AVA) in Napa County, California. The proposed AVA is located entirely within the existing North Coast AVA and also entirely within the Napa Valley AVA. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on these proposals.

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.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to expand the ``Red Hills Lake County'' viticultural area by approximately 679 acres. The Red Hills Lake County viticultural area and the proposed expansion area are both located in Lake County, California, and are located within the established Clear Lake and North Coast viticultural areas. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on this proposed amendment to its regulations.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to establish the 7,296-acre ``Winters Highlands'' viticultural area in portions of Solano and Yolo Counties, in California. The proposed viticultural area is not within any other established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on this proposed addition to its regulations.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is seeking public comment on TTB's trade practice regulations related to the Federal Alcohol Administration Act's exclusive outlet, tied house, commercial bribery, and consignment sales prohibitions. President Biden's Executive Order 14036 (``Promoting Competition in the American Economy''), the Department of the Treasury's related February 2022 report (``Competition in the Markets for Beer, Wine, and Spirits''), and public comments related to that report have raised questions about whether these regulations could be improved. To assist the agency in formulating potential proposals to amend the regulations, TTB invites comments on the issues described in this document.

This temporary rule amends the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations to implement certain changes made to the Internal Revenue Code by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Tax Relief Act), which amended the Craft Beverage Modernization Act (CBMA) provisions of the Tax Cuts and Jobs Act of 2017. The Tax Relief Act transfers responsibility for administering CBMA provisions regarding reduced tax rates and tax credits on imported alcohol from U.S. Customs and Border Protection (CBP) to the U.S. Department of the Treasury, effective January 1, 2023. Beginning on that date, importers will pay the full tax rate at entry and subsequently submit refund claims to TTB to receive the lower rates. This rule establishes procedures for industry members to take advantage of reduced tax rates and tax credits that may be applied to specified limits of imported alcohol products that are entered for consumption in the United States beginning on January 1, 2023. These regulations establish the procedures by which foreign producers may assign the reduced tax rates and tax credits to importers and the procedures by which such importers may receive the assignments and submit refund claims to TTB. TTB is soliciting comments from all interested parties on these amendments through a notice of proposed rulemaking published elsewhere in this issue of the Federal Register.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is amending its regulations pertaining to the production of wine to add to the list of materials and processes authorized for the treatment of wine and of the juice from which wine is made, and to expand the authorized uses of certain materials already authorized under the regulations. TTB is finalizing amendments to the regulations proposed in a notice of proposed rulemaking, Notice No. 164, with some changes in response to comments received. Adding these wine treating materials and processes to the TTB regulations will increase the acceptability in export markets of wine produced using these materials and processes.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is expanding the approximately 64,640-acre ``Clarksburg'' viticultural area by approximately 27,945 acres. The Clarksburg viticultural area is located in Sacramento, Solano, and Yolo Counties, in California, and the expansion area is located in Sacramento and Solano Counties. The established Clarksburg viticultural area and the expansion area are not located within any other established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to establish the approximately 7,605-acre ``Long Valley-Lake County'' viticultural area in Lake County, California. Additionally, TTB proposes to expand the boundary of the established 14,000-acre High Valley viticultural area by approximately 1,542 acres in order to create a contiguous border with the proposed Long Valley-Lake County viticultural area. Only the western third of the proposed Long Valley-Lake County viticultural area, and approximately three quarters of the High Valley viticultural area, would lie within the established, multi-county North Coast viticultural area. To avoid this partial overlap with the High Valley and proposed Long Valley-Lake County viticultural areas, TTB is proposing to expand the boundary of the North Coast viticultural area by approximately 23,690 acres. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on these proposals.

As part of our continuing effort to reduce paperwork and respondent burden, and as required by the Paperwork Reduction Act of 1995, we invite comments on the proposed or continuing information collections listed below in this document.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is amending certain of its regulations governing the labeling and advertising of distilled spirits and malt beverages to address comments it received in response to a notice of proposed rulemaking, Notice No. 176, published on November 26, 2018. On April 2, 2020, TTB finalized certain labeling amendments arising out of that proposed rule. This document finalizes the reorganization of, and addresses the remaining issues related to, the labeling of distilled spirits and malt beverages. Reorganizing the wine labeling regulations, and addressing the remaining labeling issues related to wine, as well as reorganizing and finalizing the regulations related to the advertising of wine, distilled spirits, and malt beverages, will be accomplished in future rulemaking. The regulatory amendments in this document will not require industry members to make changes to alcohol beverage labels or advertisements but instead provide additional flexibility to make certain changes going forward.

As part of our continuing effort to reduce paperwork and respondent burden, and as required by the Paperwork Reduction Act of 1995, we invite comments on the proposed or continuing information collections listed below in this notice.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 200-square mile ``Verde Valley'' viticultural area (AVA) in Yavapai County, Arizona. The Verde Valley viticultural area is not located within any other established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) published a final rule modifying the boundaries of the Santa Lucia Highlands viticultural area and the adjacent Arroyo Seco viticultural area in the Federal Register of August 25, 2021. That final rule contained an error in an amendatory instruction. This document corrects that error.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the 673,059-acre ``Virginia Peninsula'' viticultural area (AVA) in southeastern Virginia. The Virginia Peninsula viticultural area is not located within, nor does it contain, any other established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to amend the regulations that set forth the standards of identity for distilled spirits to include Singani as a type of brandy that is a distinctive product of Bolivia. This proposal follows a joint petition submitted by the Plurinational State of Bolivia and Singani 63, Inc., and subsequent discussions with the Office of the United States Trade Representative. TTB invites comments on this proposed amendment to its regulations, including comments on its proposal to authorize a minimum bottling proof of 35 percent alcohol by volume (or 70[deg] proof) for Singani.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to establish the 34,155-acre ``Paulsell Valley'' viticultural area in Stanislaus County, California. The proposed AVA is not located within, nor does it contain, any other viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on these proposals.

In this final rule, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is removing obsolete regulatory provisions related to whistleblower rewards. Under the Internal Revenue Code, individuals who provide information to the Treasury Department regarding underpayment of taxes or violations of internal revenue laws may file claims for monetary ``whistleblower'' awards. Recent changes to the Code have made the TTB regulation regarding whistleblower rewards obsolete, and, therefore, TTB is removing that provision from its regulations. TTB has signed a memorandum of understanding with the Internal Revenue Service, under which the Internal Revenue Service will process whistleblower award claims for information regarding underpayment of taxes collected by TTB or violations of the internal revenue laws administered by TTB.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 16,870-acre ``The Burn of Columbia Valley'' viticultural area in Klickitat County, Washington. The newly- established The Burn of Columbia Valley viticultural area is located entirely within the existing Columbia Valley viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the 93,738-acre ``White Bluffs'' viticultural area in Franklin County, Washington. The White Bluffs viticultural area is located entirely within the existing Columbia Valley viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

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 $21,039, with each day constituting a separate offense. This document announces that this maximum penalty is being increased to $21,663.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 58,000-acre ``Tehachapi Mountains'' viticultural area in Kern County, California. The Tehachapi Mountains viticultural area is not located within, nor does it contain, any established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to expand the approximately 64,640-acre ``Clarksburg'' viticultural area by approximately 27,945 acres. The Clarksburg viticultural area is located in Sacramento, Solano, and Yolo Counties, in California, and the proposed expansion area is located in Sacramento and Solano Counties. The established Clarksburg viticultural area and the proposed expansion area are not located within any established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on this proposed amendment to its regulations.