Federal Register/Vol. 78, No. 95/Thursday, May 16, 2013/Rules
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Federal Register / Vol. 78, No. 95 / Thursday, May 16, 2013 / Rules and Regulations 28739 Dated: May 10, 2013. of alcohol beverages to obtain Brandy and Pisco Thomas M. Harrigan, certificates of label approval prior to Brandy is Class 4 in the standards of Deputy Administrator. bottling or importing alcohol beverages identity, where it is defined in § 5.22(d) [FR Doc. 2013–11593 Filed 5–15–13; 8:45 am] for sale in interstate commerce. as ‘‘an alcoholic distillate from the BILLING CODE 4410–09–P Regulations implementing those fermented juice, mash, or wine of fruit, provisions of section 105(e) as they or from the residue thereof, produced at relate to distilled spirits are set forth in less than 190° proof in such manner that DEPARTMENT OF THE TREASURY part 5 of title 27 of the Code of Federal the distillate possesses the taste, aroma, Regulations (27 CFR part 5). The and characteristics generally attributed Alcohol and Tobacco Tax and Trade Alcohol and Tobacco Tax and Trade to the product, and bottled at not less Bureau Bureau (TTB) administers the FAA Act than 80° proof.’’ ‘‘Pisco’’ is a term pursuant to section 1111(d) of the recognized by both the governments of 27 CFR Part 5 Homeland Security Act of 2002, Peru and Chile as a designation for a codified at 6 U.S.C. 531(d). The distilled spirits product made from [Docket No. TTB–2012–0001; T.D. TTB–113; Secretary has delegated various Re: Notice No. 126] grapes. Generally, Pisco is classified as authorities through Treasury brandy under the terms of TTB’s current RIN 1513–AB91 Department Order 120–01 (Revised), labeling regulations. However, Pisco is dated January 21, 2003, to the TTB not currently listed as a type of brandy Standards of Identity for Pisco and Administrator to perform the functions Cognac in Class 4. Rather, ‘‘Pisco brandy’’ has and duties in the administration and been included in Class 11, at AGENCY: Alcohol and Tobacco Tax and enforcement of this law. § 5.22(k)(3), as an example of a Trade Bureau, Treasury. Certificates of Label Approval geographical name that is not a name for ACTION: Final rule; Treasury decision. a distinctive type of distilled spirits, and TTB’s regulations prohibit the release that has not become generic. SUMMARY: This final rule amends the of bottled distilled spirits from customs Alcohol and Tobacco Tax and Trade custody for consumption unless an International Agreements Bureau regulations setting forth the approved Certificate of Label Approval Pursuant to the United States-Peru standards of identity for distilled spirits (COLA) covering the product has been Trade Promotion Agreement, the United to include Pisco as a type of brandy that deposited with the appropriate Customs States recognized Pisco Peru´ as a must be manufactured in accordance officer at the port of entry. See 27 CFR distinctive product of Peru (Article with the laws and regulations of either 5.51. The TTB regulations also generally 2.12(2) of the Agreement). Accordingly, Peru or Chile, as appropriate, governing prohibit the bottling or removal from a the United States agreed not to permit the manufacture of those products. This plant of distilled spirits unless the the sale of any product as Pisco Peru´ final rule also removes ‘‘Pisco brandy’’ proprietor possesses a COLA covering unless it has been manufactured in Peru from the list of examples of geographical the labels on the bottle. See 27 CFR in accordance with the laws and designations in the distilled spirits 5.55. regulations of Peru governing Pisco. standards of identity, and it includes a Classes and Types of Spirits In addition, pursuant to the United technical correction to remove States-Chile Free Trade Agreement, the ‘‘Cognac’’ from the same list of The TTB labeling regulations require United States recognized Pisco Chileno examples. These changes provide that the class and type of distilled (Chilean Pisco) as a distinctive product greater clarity in distilled spirits spirits appear on the product’s brand of Chile (Article 3.15(2) of the labeling. label. See 27 CFR 5.32(a)(2) and 5.35. Agreement). Accordingly, the United Those regulations provide that the class DATES: Effective Date: This final rule is States agreed not to permit the sale of and type must be stated in conformity effective July 15, 2013. any product as Pisco Chileno (Chilean with § 5.22 of the TTB regulations (27 Pisco) unless it has been manufactured FOR FURTHER INFORMATION CONTACT: CFR 5.22) if defined therein. Otherwise, in Chile in accordance with the laws Karen Welch, Alcohol and Tobacco Tax the product must be designated in and regulations of Chile governing the and Trade Bureau, Regulations and accordance with trade and consumer manufacture of Pisco. Rulings Division; telephone 202–453– understanding thereof, or, if no such In like manner, Peru and Chile agreed, 1039, ext. 046; email [email protected]. understanding exists, by a distinctive or respectively, to recognize Bourbon SUPPLEMENTARY INFORMATION: fanciful name, and in either case (with Whiskey and Tennessee Whiskey Background limited exceptions), followed by a (which is defined in both Agreements as truthful and adequate statement of a straight Bourbon Whiskey authorized TTB Authority composition (see 27 CFR 5.35). to be produced only in the State of Section 105(e) of the Federal Alcohol Section 5.22 establishes standards of Tennessee), as distinctive products of Administration Act (FAA Act), codified identity for distilled spirits products the United States, and not to permit the in the United States Code at 27 U.S.C. and categorizes these products sale of any product as Bourbon Whiskey 205(e), authorizes the Secretary of the according to various classes and types. or Tennessee Whiskey unless it has Treasury (Secretary) to prescribe As used in § 5.22, the term ‘‘class’’ refers been manufactured in the United States regulations relating to the packaging, to a general category of spirits, such as in accordance with the laws and marking, branding, labeling, and size ‘‘whisky’’ or ‘‘brandy.’’ Currently, there regulations of the United States and fill of containers of alcohol are 12 different classes of distilled governing the manufacture of Bourbon beverages that will prohibit consumer spirits recognized in § 5.22, including Whiskey and Tennessee Whiskey. (TTB deception and provide the consumer whisky, rum, and brandy. The term notes that there are alternative spellings with adequate information as to the ‘‘type’’ refers to a subcategory within a for the same term—‘‘whisky’’ in the TTB identity and quality of the product. class of spirits. For example, ‘‘Cognac’’ regulations in 27 CFR part 5 and Section 105(e) of the FAA Act also is a type of brandy, and ‘‘Canadian ‘‘whiskey’’ in the Agreements with Peru generally requires bottlers and importers whisky’’ is a type of whisky. and Chile.) VerDate Mar<15>2010 14:43 May 15, 2013 Jkt 229001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\16MYR1.SGM 16MYR1 erowe on DSK2VPTVN1PROD with RULES 28740 Federal Register / Vol. 78, No. 95 / Thursday, May 16, 2013 / Rules and Regulations Pisco Production In Notice No. 126, TTB specifically which is entitled to be so designated by proposed to amend the standard of the laws and regulations of the French ‘‘The Oxford Companion to Wine’’ identity in § 5.22(d) to add Pisco as a Government.’’ The inclusion of (Jancis Robinson, ed., Oxford University type of brandy that is manufactured in ‘‘Cognac’’ in the list of examples of Press, 2d ed., 2001, p. 536) reports that Peru or Chile in compliance with the geographical names that are not names Spanish colonists began producing laws of the country of production for distinctive types of distilled spirits, aguardiente (grape spirits) in both Peru regulating the manufacture of Pisco. The and that have not become generic, in and Chile in the sixteenth century, and proposed amendment would also § 5.22(k)(3) is duplicative and it describes such spirits as being recognize the phrases ‘‘Pisco Peru´ ’’ confusing. Accordingly, TTB proposed produced near the town of Pisco, Peru. (with or without the diacritic mark, i.e., to remove the reference to Cognac in Further, ‘‘The Oxford Companion to ‘‘Pisco Peru´ ’’ or ‘‘Pisco Peru’’), ‘‘Pisco § 5.22(k)(3) as a technical correction to Wine’’ says ‘‘‘‘Pisco’’ is an aromatic Chileno,’’ and ‘‘Chilean Pisco,’’ as the regulations. brandy made in Peru, Chile, and equivalent class and type names of the Effect on Currently Approved Labels Bolivia, mainly from Moscatel (muscat) product, to reflect the provisions of the grapes.’’ According to ‘‘Alexis Lichine’s trade agreements. TTB clarified that if In Notice No. 126, TTB stated that the Encyclopedia of Wines and Spirits’’ Pisco is recognized as a type of brandy, proposed change to the regulations (Alexis Lichine, ed., 5th ed., Alfred A. persons who distribute it in the United would revoke by operation of regulation Knopf, Inc., 1987), ‘‘Pisco brandy’’ is States will be entitled to label the any COLAs that specify ‘‘Pisco’’ as the brandy distilled from Muscat wine in product according to its type class and type or, brand name, or Peru, Chile, Argentina, and Bolivia. designation ‘‘Pisco’’ without the term fanciful name of distilled spirits Peru and Chile have promulgated ‘‘brandy’’ on the label, in the same way products that are not products of Peru standards for the production of Pisco. that a product labeled with the type or Chile. TTB also noted that it had searched its COLA database, and Notice of Proposed Rulemaking designation ‘‘Cognac’’ is not required to also bear the class designation believes that this rulemaking will affect On March 27, 2012, TTB published ‘‘brandy.’’ only a small number of labels.