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DEPARTMENT OF THE TREASURY C. The Certificate of Label Approval order, the President created the Federal (COLA) Process Alcohol Control Administration to Alcohol and Tobacco Tax and Trade D. Modernization of the Alcohol Beverage administer the codes of fair competition Bureau Labeling and Advertising Regulations E. Plain Language Principles for the alcohol beverage industry. In F. Scope of this Rulemaking 1935, the Supreme Court struck down 27 CFR Parts 4, 5, 7, 14, and 19 II. Proposed Revisions the provisions of the National Industrial [Docket No. TTB–2018–0007; Notice No. A. General Reorganization of the Parts Recovery Act as unconstitutional. See 176] B. Proposed Changes That Apply to Parts Schechter Poultry Corp. v. United 4, 5 and 7 States, 295 U.S. 495 (1935). After that RIN 1513–AB54 C. Proposed Changes Specific to 27 CFR decision, in order to provide for the Part 4 (Wine) orderly regulation of the alcohol Modernization of the Labeling and D. Proposed Changes Specific to 27 CFR Advertising Regulations for Wine, Part 5 (Distilled Spirits) beverage industry, Congress enacted the Distilled Spirits, and Malt Beverages E. Proposed Changes Specific to 27 CFR FAA Act in August of 1935. Part 7 (Malt Beverages) The legislative history of the FAA Act AGENCY: Alcohol and Tobacco Tax and F. Proposed 27 CFR Part 14 (Advertising) provides some insight concerning the Trade Bureau, Treasury. G. Impact on Public Guidance Documents general purpose of the FAA Act’s ACTION: Notice of proposed rulemaking. H. Impact on Current Labels labeling provisions, which authorize III. Derivation Tables for Proposed Parts 4, 5, TTB to regulate the labeling of alcohol SUMMARY: The Alcohol and Tobacco Tax 7, and 14 beverage products: and Trade Bureau (TTB) is proposing to IV. Public Participation amend its regulations governing the A. Comments Sought * * * the provisions of this bill show that the purpose was to carry that regulation into labeling and advertising of wine, B. Submitting Comments C. Confidentiality certain particular fields in which control of distilled spirits, and malt beverages. D. Public Disclosure interstate commerce in liquors was TTB proposes to reorganize and recodify V. Regulatory Analyses and Notices paramount and necessary. The purpose was these regulations in order to simplify A. Regulatory Flexibility Act to provide such regulations, not laid down in and clarify regulatory standards, B. Executive Order 12866 statute, so as to be inflexible, but laid down incorporate guidance documents and C. Paperwork Reduction Act under the guidance of Congress, under current policy into the regulations, and VI. Drafting Information general principles, by a body which could reduce the regulatory burden on List of Subjects change them as changes were found industry members where possible. Authority and Issuance necessary. Those regulations were intended to insure that the purchaser should get what DATES: TTB must receive comments on I. Background he thought he was getting, that this proposal on or before March 26, A. TTB’s Statutory Authority representations both in labels and in 2019. advertising should be honest and straight- Sections 105(e) and 105(f) of the ADDRESSES: Please send your comments forward and truthful. They should not be Federal Alcohol Administration Act confined, as the pure-food regulations have on this document to one of the been confined, to prohibitions of falsity, but following addresses: (FAA Act), 27 U.S.C. 205(e) and 205(f), • set forth standards for the regulation of they should also provide for the information Internet: https:// of the consumer, that he should be told what www.regulations.gov (via the online the labeling and advertising of wine, distilled spirits, and malt beverages. The was in the bottle, and all the important comment form for this document as factors which were of interest to him about posted within Docket No. TTB–2018– FAA Act was enacted in 1935 and also what was in the bottle. (See Hearings on H.R. 0007 at ‘‘Regulations.gov,’’ the Federal contains provisions regarding the 8539 before the Committee on Ways and e-rulemaking portal); requirements for basic permits that Means, House of Representatives, 74th Cong., • U.S. Mail: Director, Regulations and allow people to engage in business as 1st Sess. 10 (1935).) Rulings Division, Alcohol and Tobacco producers, importers, and wholesalers, and the regulation of unfair trade 2. Labeling and Advertising Provisions Tax and Trade Bureau, 1310 G Street of the FAA Act NW, Box 12, Washington, DC 20005; or practices. • Hand delivery/courier in lieu of The Alcohol and Tobacco Tax and Section 105(e) of the FAA Act, mail: Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the codified in the United States Code at 27 Trade Bureau, 1310 G Street NW, Suite FAA Act pursuant to section 1111(d) of U.S.C. 205(e), sets forth requirements for 400, Washington, DC 20005. the Homeland Security Act of 2002, labeling of wine (which is defined in the See the Public Participation section of codified at 6 U.S.C. 531(d). The FAA Act to cover only wines that this document for specific instructions Secretary of the Treasury (the Secretary) contain at least 7 percent alcohol by and requirements for submitting has delegated various authorities to volume), distilled spirits, and malt comments, and for information on how administer and enforce this law to the beverages (collectively referred to as to request a public hearing. TTB Administrator through Treasury ‘‘alcohol beverages’’ throughout this FOR FURTHER INFORMATION CONTACT: Department Order 120–01 (dated document). This section of the FAA Act Christopher M. Thiemann or Kara T. December 10, 2013, superseding authorizes the Secretary to issue Fontaine, Regulations and Rulings Treasury Order 120–01 (Revised), regulations to prevent deception of the Division, Alcohol and Tobacco Tax and ‘‘Alcohol and Tobacco Tax and Trade consumer, to provide the consumer with Trade Bureau, 1310 G Street NW, Box Bureau,’’ dated January 24, 2003). ‘‘adequate information’’ as to the identity and quality of the product, to 12, Washington, DC 20005; telephone 1. History of the FAA Act 202–453–2265. prohibit false or misleading statements, After the repeal of Prohibition by the SUPPLEMENTARY INFORMATION: and to provide information as to the enactment of the Twenty-First alcohol content of the product. Table of Contents Amendment in 1933, the alcohol beverage industry was subject to Federal 3. FAA Act Prohibition of Sale or I. Background Shipment of Mislabeled Products A. TTB’s Statutory Authority regulation under the codes of fair B. Current TTB Alcohol Beverage Labeling competition authorized by the National Section 105(e) of the FAA Act (27 and Advertising Regulations Industrial Recovery Act. By Executive U.S.C. 205(e)) also prohibits the sale or

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shipment in interstate or foreign content thereof, the net contents of the abbreviation thereof, and will prevent commerce of wine, distilled spirits, or package, and the manufacturer or bottler the use of a graphic, pictorial, or malt beverages that are not bottled, or importer of the product. This section emblematic representation of any such packaged, and labeled in accordance provides the basis for most of the individual or organization, if the use of with regulations issued by the Secretary. mandatory information requirements in such name or representation is likely to Violations of section 105(e) are the TTB labeling regulations. falsely lead the consumer to believe that misdemeanors that are punishable by a With regard to alcohol content, the product has been endorsed, made or fine. See 27 U.S.C. 207. section 105(e)(2) sets out different used by, or produced for, or under the The prohibition in section 105(e) requirements for wine, distilled spirits, supervision of, or in accordance with applies to any person engaged in and malt beverages. This section the specifications of, such individual or business as a distiller, brewer, rectifier, provides the Secretary with the organization. Certain ‘‘grandfathering’’ blender, or other producer, or as an authority to issue regulations that provisions are included in this section. importer or wholesaler of wine, distilled require alcohol content statements on These provisions are incorporated into spirits or malt beverages, or as a bottler, labels of distilled spirits products and the current regulations on prohibited or warehouseman and bottler, of for wines with an alcohol content of practices. distilled spirits. The law makes it over 14 percent alcohol by volume, unlawful for such persons, directly or leaving such statements optional for 5. Prohibition of Alteration, Mutilation, indirectly or through an affiliate, to sell wines with an alcohol content at or Destruction, Obliteration, or Removal of or ship, or deliver for sale or shipment, below 14 percent. Furthermore, the FAA Labels or otherwise introduce, in interstate or Act contains language that specifically Section 105(e) makes it unlawful for foreign commerce, or to receive therein, prohibits placement of alcohol content any person to alter, mutilate, destroy, or to remove from customs custody for statements on malt beverage labels, obliterate, or remove any mark, brand, consumption, any wine, distilled spirits, unless required by State law. In 1995, or label upon wine, distilled spirits, or or malt beverages in bottles, unless the that statutory ban was struck down on malt beverages held for sale in interstate products are bottled, packaged, and First Amendment grounds by the U.S. or foreign commerce or after shipment labeled in conformity with the Supreme Court in Rubin v. Coors therein. An exception is made where the regulations. Brewing Co., 514 U.S. 476 (1995) activity is authorized by Federal law. (hereinafter referred to as the ‘‘Coors’’ The FAA Act also authorizes the 4. Authorization of Labeling Regulations decision). Secretary to issue regulations in the FAA Act c. Statement of neutral spirits. Section authorizing relabeling for the purposes The FAA Act provides specific 105(e)(3) of the FAA Act (27 U.S.C. of compliance with the requirements of guidance as to what the labeling 205(e)(3)) authorizes the issuance of section 105(e) or of State law. These regulations should cover, but builds in regulations that require an accurate regulations are found in parts 4, 5 and a ‘‘zone of discretion’’ for TTB to statement in the case of distilled spirits 7 of 27 CFR. exercise in implementing these (other than cordials, liqueurs, and 6. Certificate of Label Approval regulations. See Center for Science in specialties) produced by blending or Requirements the Public Interest v. Department of the rectification, if neutral spirits have been Treasury, 797 F.2d 995 (D.C. Cir. 1986). used in the production thereof, Section 105(e) of the FAA Act sets out The following provides a summary of informing the consumer of the very specific requirements for the the statutory provisions with regard to percentage of neutral spirits so used and issuance of certificates of label approval the labeling of wine, distilled spirits, of the name of the commodity from (COLAs) by the Secretary. The law and malt beverages under section 105(e) which such neutral spirits have been provides that ‘‘[i]n order to prevent the of the FAA Act (27 U.S.C. 205(e)). distilled, or in the case of neutral spirits sale or shipment or other introduction a. Prohibition of consumer deception. or of gin produced by a process of of distilled spirits, wine, or malt Section 105(e)(1) of the FAA Act (27 continuous distillation, the name of the beverages in interstate or foreign U.S.C. 205(e)(1)) authorizes the issuance commodity from which distilled. These commerce, if bottled, packaged, or of regulations that prohibit deception of very specific statutory provisions are labeled in violation of the requirements the consumer with respect to such incorporated into the TTB distilled of this subsection,’’ certain persons are products or the quantity thereof, and spirits labeling regulations. required to obtain a COLA prior to prohibit, irrespective of falsity, such d. Prohibition of statements that are bottling distilled spirits, wine, or malt statements relating to age, disparaging, false, misleading, obscene, beverages. manufacturing processes, analyses, or indecent. Section 105(e)(4) (27 U.S.C. The persons covered by this guarantees, and scientific or irrelevant 205(e)(4)) authorizes the issuance of requirement under the law are bottlers matters that the Secretary finds to be regulations to prohibit labeling of distilled spirits; producers, blenders, likely to be misleading to the consumer. statements that are disparaging of a and wholesalers of wine, and This section provides the basis for many competitor’s products or are false, proprietors of a bonded wine storeroom; of TTB’s regulations on prohibited misleading, obscene or indecent. This and brewers and wholesalers of malt practices with respect to labeling provision is reflected in TTB’s current beverages. With regard to imported statements. regulations on prohibited practices. products, the law provides that no b. Adequate information as to the e. Prohibition of implied person shall remove from customs identity, quality, and alcohol content of endorsements that are false or custody, in bottles, for sale or any other products, as well as the net contents misleading. Section 105(e)(5) (27 U.S.C. commercial purpose, distilled spirits, and the manufacturer/bottler/importer. 205(e)(5)) authorizes the issuance of wine, or malt beverages, without first Section 105(e)(2) of the FAA Act (27 regulations that prevent deception of the obtaining a COLA. The law provides U.S.C. 205(e)(2)) authorizes the issuance consumer by use of a trade or brand that such COLAs are to be issued in of regulations to ensure that labels name that is the name of any living such manner and form as the Secretary provide the consumer with adequate individual of public prominence, or shall prescribe by regulations. information as to the identity and existing private or public organization, The law goes on to allow for the quality of the product, the alcohol or is a name that is in simulation or an issuance of certificates of exemption,

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pursuant to regulations issued by the 8. Special Rules for Malt Beverages than the required health warning Secretary, when an applicant has shown Under the FAA Act statement, on any alcoholic beverage to the satisfaction of the Secretary that The statutory requirements for malt container, box, carton, or other package the wine, distilled spirits, or malt beverages under the FAA Act differ that contains such a container. See 27 beverages to be bottled by the applicant from the requirements for distilled U.S.C. 216. are not to be sold, or offered for sale, or spirits and wine. Most notably for This proposed rule does not affect shipped or delivered for shipment, or purposes of this document, the labeling ABLA labeling requirements. otherwise introduced, in interstate or provisions of the FAA Act apply to the 10. Internal Revenue Code Marking foreign commerce. The law provides for labeling of malt beverages sold or Requirements the issuance of these certificates to shipped or delivered for shipment or In addition to the FAA Act and bottlers of distilled spirits; producers, otherwise introduced into or received in ABLA, Chapter 51 of the Internal blenders, or wholesalers of wine, or any State from any place outside of that Revenue Code of 1986 (IRC), (26 U.S.C. proprietors of a bonded wine storeroom; State ‘‘only to the extent that the law of 5001 et seq.), sets forth certain marking and brewers and wholesalers of malt such State imposes similar requirements requirements for alcohol beverage beverages. However, the law does not with respect to the labeling’’ of malt products. Chapter 51 of the IRC imposes authorize the issuance of certificates of beverages sold within that State. See 27 Federal excise taxes on beer, wine, and U.S.C. 205(f). exemption to persons removing alcohol distilled spirits, and provides for the The penultimate paragraph of section regulation of alcohol beverages to beverages in containers from customs 105(f) also provides that the advertising protect the revenue associated with custody, presumably because those provisions of the FAA Act apply to the those taxes. The tax rates differ products will by definition be advertising of malt beverages intended depending on the product, and the introduced in interstate or foreign to be sold or shipped or delivered for marking requirements provide for the commerce. shipment or otherwise introduced into proper determination of tax liability or received in any State from any place 7. Advertising Provisions of the FAA based on the identity of the product. Act outside of that State, only to the extent This proposed rule does not amend that the law of that State imposes IRC labeling requirements. However, Section 105(f) of the FAA Act (27 ‘‘similar requirements’’ with respect to some IRC labeling regulations require U.S.C 205(f)) provides similar authority the advertising of malt beverages to be compliance with certain FAA Act to the Secretary to prescribe regulations sold within that State. labeling regulations by cross-referencing with respect to the advertising of wine, 9. Alcoholic Beverage Labeling Act labeling provisions in 27 CFR parts 4, 5 distilled spirits, and malt beverages. (ABLA) or 7, as applicable. The Secretary is authorized to The Alcoholic Beverage Labeling Act B. Current TTB Alcohol Beverage prescribe regulations that will prevent of 1988 (ABLA) requires that a specific Labeling and Advertising Regulations deception of the consumer and to health warning statement appear on the 1. History prohibit, irrespective of falsity, such labels of all containers of alcohol statements relating to age, beverages for sale or distribution in the The first regulations implementing manufacturing processes, analyses, United States. See 27 U.S.C. 215. This the labeling and advertising provisions guarantees, and scientific or irrelevant requirement applies to both interstate of the FAA Act were promulgated in matters that the Secretary finds to be and intrastate sale and distribution of 1936 by the Federal Alcohol likely to mislead the consumer. See 27 alcoholic beverages. In addition, the Administration (FAA). Over the next U.S.C. 205(f)(1). The Secretary is also health warning statement must appear several decades, various amendments to these regulations were published by authorized to prescribe regulations to on containers of alcoholic beverages that TTB’s other predecessor agencies, the ensure that advertisements provide the are sold, distributed, or shipped to members or units of the U.S. Armed Internal Revenue Service (IRS), and the consumer with adequate information as Bureau of Alcohol, Tobacco and to the identity and quality of the Forces, including those located outside the United States. Firearms (ATF). TTB assumed products advertised, the alcohol content The health warning statement responsibility for the enforcement and thereof, and the person responsible for required by ABLA advises consumers of implementation of these regulations in the advertisement. See 27 U.S.C. the risks of birth defects to pregnant January of 2003, pursuant to the 205(f)(2). The statute bans alcohol women, impairment of the ability to Homeland Security Act of 2002. content statements on advertisements of operate a car or other machinery, and 2. FAA Act-Based Regulations both wine and malt beverages; this other potential health problems provision was not the subject of the resulting from the consumption of The TTB regulations that implement Supreme Court’s decision in Coors. alcoholic beverages. As stated in 27 the labeling and advertising provisions U.S.C. 213: of the FAA Act, as they relate to wine, The FAA Act contains advertising distilled spirits, and malt beverages, are provisions that are very similar to the The Congress finds that the American set forth in chapter I of title 27 of the labeling provisions with regard to public should be informed about the health Code of Federal Regulations (27 CFR hazards that may result from the disclosure of neutral spirits (27 U.S.C. chapter I). Specifically, these 205(f)(3)) and the prohibition of consumption or abuse of alcoholic beverages, and has determined that it would be regulations are codified in 27 CFR part statements that are disparaging, false, beneficial to provide a clear, nonconfusing 4, Labeling and Advertising of Wine (27 misleading, obscene, or indecent (27 reminder of such hazards, and that there is CFR part 4); 27 CFR part 5, Labeling and U.S.C. 205(f)(4)). The FAA Act also a need for national uniformity in such Advertising of Distilled Spirits (27 CFR authorizes the issuance of regulations to reminders in order to avoid the promulgation part 5); and 27 CFR part 7, Labeling and prevent advertising statements that are of incorrect or misleading information * * *. Advertising of Malt Beverages (27 CFR inconsistent with any statement on the ABLA provides that no State may part 7). labeling of the products advertised. (27 require any statement concerning a. Mandatory and prohibited labeling U.S.C. 205(f)(5)). alcoholic beverages and health, other information. The TTB regulations

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contained in 27 CFR parts 4, 5, and 7 class and type. While the term product is not sold in interstate require that all wine, distilled spirits, ‘‘statement of composition’’ is not commerce. The regulations promulgated and malt beverages sold or shipped in, currently defined in the regulations, under the authority of the ABLA are set or otherwise introduced into, interstate TTB’s general policy has been to require forth in 27 CFR part 16, Alcoholic commerce bear labels that contain that such a statement identify the base Beverage Health Warning Statement (27 certain mandatory information. The product and any added flavoring or CFR part 16). As noted above, this regulations also set conditions on the coloring materials. For example, a proposal does not affect ABLA labeling use of certain non-mandatory statement of composition may be ‘‘grape requirements. information and specifically prohibit wine with raspberry flavor added,’’ ‘‘a 4. TTB’s IRC Marking Regulations labeling statements that are false or tend blend of vodka and coconut liqueur,’’ or to create a misleading impression. ‘‘ale brewed with watermelon juice.’’ Finally, regulations implementing the Provisions in parts 4, 5, and 7 As noted above, the ‘‘net contents’’ IRC marking requirements appear in 27 currently require similar mandatory must appear on containers. This is CFR parts 19, 24, and 25 (relating to, information to appear on labels of wine, required for all three commodities. TTB respectively, domestic producers and distilled spirits, and malt beverages, regulations provide standards of fill for bottlers of distilled spirits, wines, and with some exceptions and with some wine and distilled spirits products but beer), as well as 27 CFR parts 26, 27, notable differences among the not for malt beverages. This means that and 28 (relating to distilled spirits, commodities. The regulations in some the net contents of wine and distilled wine, and beer that are, respectively, circumstances also contain provisions spirits containers must be consistent brought into the United States from regarding the placement of the with specified quantities prescribed by Puerto Rico and the Virgin Islands, mandatory information. Commodity- the standards of fill requirements (such imported into the United States, and specific rules are discussed more fully as 750 milliliters). exported from the United States). As in later sections of this document, but Certain types of information or noted above, this proposal does not a general description of the current representations are prohibited from affect these IRC-based regulations. appearing on alcohol beverage labels, labeling requirements is provided here. C. The Certificate of Label Approval The mandatory information that must and these are set forth in regulations (COLA) Process appear on alcohol beverage labels entitled ‘‘prohibited practices.’’ See includes such things as the brand name current 27 CFR 4.39, 5.42, and 7.29, for As noted above, a person who intends of the product; a statement of the class, wine, distilled spirits, and malt to bottle wine, distilled spirits, or malt type, or other designation of the beverages, respectively. Some labeling beverages, or remove those products product; the name and address of the practices are prohibited outright on from customs custody in bottles, for bottler or importer; a statement of the alcohol beverage labels for any of the introduction into interstate or foreign net contents; and declarations relating commodities. For example, no false or commerce must, before doing so, obtain to sulfites or added colors in the obscene statement may appear on any approval of the labels for the bottles product. Alcohol content statements, alcohol beverage label or container. through a COLA issued by TTB. expressed as a percentage of alcohol by Other practices are prohibited if Currently, each application for a COLA volume, are required for distilled spirits, presented in a manner that is is reviewed by a TTB specialist for wine over 14 percent alcohol by misleading. compliance with the FAA Act and TTB volume, and certain flavored malt Some practices may be prohibited for regulations. In fiscal year 2015, TTB beverages. These requirements, as well just one of the commodities. For received over 153,000 applications for as certain exceptions to these example, existing regulations prohibit label approval. The time between the requirements, are set forth later in this certain uses of the term ‘‘pure’’ on date of application and final TTB preamble. distilled spirits labels. Other labeling determination on the application With regard to the class, type, or other practices may be used on labels if they averaged approximately 24 days. designation, the regulations specify and comply with certain rules. These In part, the increase in the number of describe 9 ‘‘classes’’ of wine, including include the use of a living person’s COLA applications is due to the ‘‘grape wine’’ and ‘‘fruit wine,’’ and 12 name or likeness and statements making growing number of industry members ‘‘classes’’ of distilled spirits, including claims about whether the product is submitting applications and to product ‘‘whisky’’ and ‘‘brandy.’’ Some classes organic. innovations and expansions in product are further subdivided into ‘‘types.’’ For b. Alcohol advertising regulations. lines by industry members. In addition, example, types of ‘‘grape wine’’ include TTB also promulgates regulations because industry members seek to bring ‘‘table wine’’ and ‘‘dessert wine,’’ while covering the advertising of wine, products to market quickly, they may types of whisky include ‘‘bourbon distilled spirits, and malt beverages. submit label approval applications early whisky’’ and ‘‘blended whisky.’’ For These regulations prescribe mandatory in their product development process, malt beverages, the TTB regulations information that must be included in an before the product and its marketing refer to certain classes but do not advertisement (such as identification of have been finalized. These industry provide specific standards of identity the responsible party) and also prohibit members may submit several for those classes. Instead, the certain practices similar to the applications for different potential regulations provide that statements of prohibited practices for labels. The labels to cover the different possible class and type must ‘‘conform to the advertising regulations are currently ways that product may eventually be designation of the product as known to found in subpart G of part 4, subpart H formulated and marketed once ready for the trade.’’ of part 5, and subpart F of part 7. market. If a wine or distilled spirit does not To implement the FAA Act provision fall within any class, and if a malt 3. TTB’s ABLA-Based Regulations requiring the issuance of COLAs, TTB beverage is not known to the trade As previously noted, all alcohol regulations provide a process through under a particular designation, the beverages bottled or imported for sale or which a person can submit an regulations require that a truthful and distribution in the United States must application for approval of a label, along adequate statement of composition bear the health warning statement with a copy of the label, and obtain TTB appear on the label as the statement of required by the ABLA, even if the approval of the label through the

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issuance by TTB of a COLA. The COLA incorporated into the form (see TTB updating these regulations, TTB sought is evidence that a label has been Industry Circular 2014–02 and TTB F to make the rules applicable to all three reviewed for compliance with the TTB 5100.31). commodities as consistent as possible, regulations and approved for use. The TTB has also been working on recognizing that some differences in requirement to obtain a COLA for additional initiatives to streamline label treatment are required by statute and domestic and imported products is set review. These include making others by the nature of the commodity forth in subparts E and F of part 4 (for processing improvements designed to or industry practice. wine), subparts E and F of part 5 (for speed up review turnaround times; distilled spirits), and subparts D and E updating labeling guidance on the TTB E. Plain Language Principles of part 7 (for malt beverages). The website (https://www.ttb.gov) to help On June 1, 1998, the President issued procedures governing the issuance and industry members comply with its a memorandum that requires Federal revocation of COLAs are set forth in 27 labeling requirements; and researching agencies to write regulations in ‘‘plain CFR part 13, Labeling Proceedings (27 industry needs and studying other language.’’ These proposed regulations CFR part 13). Federal agencies’ best practices so that have been written in the plain language The regulations also authorize the TTB can continue to improve its label style. The proposed regulations: issuance of certificates of exemption for review process in the future. • Use the active voice in the wine and distilled spirits when the D. Modernization of the Alcohol regulations, whenever possible; applicant establishes that the wine or • Beverage Labeling and Advertising Use shorter sentences, paragraphs, distilled spirits product is not to be Regulations and sections; sold, offered for sale, or shipped or • Minimize the use of jargon and As part of the Department of the delivered for shipment, or otherwise unnecessary technical terms; introduced in interstate or foreign Treasury’s ‘‘Plan for Retrospective • Analysis of Existing Rules,’’ TTB has Clarify and simplify the regulatory commerce. It should be noted that TTB requirements; and its predecessor agencies have never been reviewing its existing labeling and • advertising of wine, distilled spirits, and Create consistency in the treatment issued regulations requiring certificates of the three commodities, as of exemption for malt beverages that malt beverages regulations. TTB appropriate; will not be sold or otherwise introduced proposes to amend these regulations to • Break large sections into smaller, in interstate or foreign commerce. improve their clarity and readability, to more focused sections for better Furthermore, the regulations do not improve compliance, and to ease burdens on the regulated industry. The readability; and require malt beverages that will not be • sold or otherwise introduced in amended regulations will take into Make it easier for readers to find interstate or foreign commerce to be account modern business practices and information through the tables of covered by a certificate of label contemporary consumer understanding contents. approval. See TTB Ruling 2013–1. This in order to modernize the regulations. F. Scope of This Rulemaking issue will be discussed later in this In this proposed rule, TTB intends to preamble. clarify, update, and consolidate labeling As mentioned above, TTB is requirements and, where possible, to set undertaking this modernization effort to 1. COLA Streamlining Initiatives forth objective standards for meeting improve understanding of the regulatory TTB has undertaken several those requirements. This effort also will requirements and to make compliance initiatives to streamline the label help TTB use its limited resources more easier and less burdensome. In addition, approval process. In 2003, TTB efficiently, facilitate the development the proposed rule will incorporate implemented COLAs Online, a system and use of more efficient systems for changes in labeling standards that have that allows industry members to submit processing applications, and reduce the come about through statutory changes electronic applications for label processing time for label applications. (such as the change to the labeling of approval. Currently, over 90 percent of In preparation for this rulemaking, wines with semi-generic designations) COLA applications are submitted and TTB reviewed its regulations, public and international agreements (through processed electronically. More recently, guidance, and labeling review practices the incorporation of various in 2013, TTB began electronically to identify policies and interpretations designations of geographic significance). processing applications that are that are relevant but have not yet been In the case of wine, we are proposing received on paper. codified in the regulations, as well as greater flexibility in the use of certain On July 5, 2012, TTB published a those that are no longer relevant and can appellations of origin and multiple revised version of TTB Form 5100.31, be eliminated. In all, TTB reviewed 90 varietal designations, both to comply ‘‘Application for and Certification/ rulings and industry circulars, and with international commitments and to Exemption of Label/Bottle Approval.’’ incorporated all or parts of provide more information to consumers The most significant change was to approximately 38 of them into the through greater flexibility in the use of expand the list of items that may be proposed regulations. When these this optional information on labels. For changed on an approved alcohol proposed regulations become final, all products, TTB is proposing greater beverage label without resubmission of those rulings and industry circulars, or flexibility with regard to the placement the label for TTB approval. This new parts thereof, will be superseded by the of mandatory information on labels. policy, which is reflected on the form, regulations. TTB also determined that TTB is also reflecting contemporary reduces the number of label eight rulings and industry circulars case law with regard to the protection of applications that industry members were no longer relevant and thus could commercial speech under the First would otherwise send to TTB. As a be superseded without being Amendment. In some cases, this means result, label applications were reduced incorporated. codifying longstanding interpretations, by 8 percent. In 2014 TTB expanded the As a result, the proposed regulations, such as our policy that the prohibition list of changes that may be made to when finalized, will provide industry on disparaging statements on labels and approved labels without requiring those with a more comprehensive source for in advertisements does not prohibit labels to be resubmitted to TTB for the general rules applicable to alcohol truthful and accurate comparisons with review—this expanded list has been beverage labeling. In addition, in a competitor’s product.

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With regard to malt beverages and malt beverage labels that include wine ease of reference, TTB will post the wine, TTB is updating the alcohol terms. TTB is proposing a specific labeling comments in the docket for this content regulations for the first time regulatory provision to prohibit the use rulemaking. We will consider all of the since the Supreme Court’s decision in of such terms when they might mislead labeling recommendations submitted in Rubin v. Coors Brewing Company, 514 consumers as to the identity of the response to the RFI either as comments U.S. 476 (1995), which struck down on product, while allowing the non- to this proposed rule or as suggestions First Amendment grounds the FAA misleading use of certain terms (such as for separate agency action, as Act’s ban on alcohol content statements references to aging malt beverages in appropriate. We note that our on malt beverage labels. In 1993, after barrels previously used for the storage of preliminary review of the comments the district court decision in the Coors distilled spirits or wine). submitted in response to the RFI case but prior to the Supreme Court TTB solicits comments on whether indicates that many of the topics that decision, TTB’s predecessor agency, the these proposals will protect consumers were included in those Bureau of Alcohol, Tobacco and and whether they will require recommendations are addressed in this Firearms (ATF), issued interim significant labeling changes by industry proposed rule, although our proposals regulations allowing optional statements members. TTB proposes to give all may in some cases differ from those set of alcohol content on malt beverage affected parties three years to come into forth in the comments. labels. See T.D ATF–339 (58 FR 21228, compliance with the proposed Finally, in this notice TTB proposes April 19, 1993). TTB is now proposing regulations, should they be finalized. to consolidate its alcohol beverage to finalize updated alcohol content This will allow industry members to advertising regulations in a new part, 27 regulations, including, in this coordinate new labeling requirements CFR part 14, Advertising of Wine, document, amendments that would with scheduled labeling changes, and to Distilled Spirits, and Malt Beverages. modernize the regulations on strength use up existing stocks of labeling and The proposed part 14 contains only claims to remove outdated language, packaging. those updates needed to conform certain such as the ban on use of the term ‘‘pre- There are a number of ongoing regulated practices to the updates being war strength,’’ which refers to the rulemaking initiatives related to labeling proposed for the labeling provisions. period before World War I. and advertising of alcohol beverages Additional updates to the regulations on This proposed rule would also that will be handled separately from this advertising to address contemporary incorporate certain proposals previously proposed rule due to their complexity. issues, such as social media, are not aired for comment by TTB in notices or For example, this document does not proposed in this rulemaking but may be advance notices of proposed deal with ‘‘Serving Facts’’ statements, proposed in future rulemaking rulemaking, including proposals on the an issue that was the subject of a 2007 initiatives. Because this proposed rule use of ‘‘estate grown’’ on wine labels, notice of proposed rulemaking (see deals with such a broad scope of and the use of aggregate packaging to Notice No. 73, 72 FR 41860, July 31, modernization changes, TTB will deal satisfy standards of fill for distilled 2007) and TTB Ruling 2013–2. Nor does with these more specific issues in spirits and wine containers. TTB address its current policy requiring separate rulemaking documents. TTB is also proposing several statements of average analysis on labels amendments that would protect that include nutrient content claims. II. Proposed Revisions consumers by providing certain more Industry members should continue to A. General Reorganization of the Parts specific labeling and packaging rules. rely on TTB’s published rulings and For example, existing regulations other guidance documents on these TTB is proposing to reorganize the require mandatory information to issues. TTB’s policy on gluten content contents of 27 CFR parts 4, 5, and 7, and appear on opaque packaging of distilled statements is still an interim one; to add a new 27 CFR part 14. As spirits and wine, because consumers are therefore, that issue is not addressed in proposed, 27 CFR parts 4, 5, and 7 unable to see the label on the container the proposed rule (see TTB Ruling continue to contain the labeling without removing the container from 2014–2). Substantive changes to allergen regulations for wine, distilled spirits, the packaging. TTB is proposing to labeling requirements are not addressed and malt beverages, respectively, while extend this requirement to malt in this document. Standards of fill the current subparts of parts 4, 5, and 7 beverages. requirements are not addressed in this that relate to advertising are removed TTB is also proposing to require document but TTB plans to address from those parts and consolidated into mandatory information to appear on any them in a separate rulemaking a new part 14. As part of TTB’s review ‘‘closed packaging’’ of wine, distilled document. of the labeling regulations, TTB spirits, or malt beverages. The proposed In addition, this document is not reviewed the various sections and amendments define closed packaging to intended to specifically address subparts and determined that much of include packaging where the mandatory proposals that were submitted to the their basic structure needs to be information on the label of the container Department of the Treasury in response amended. Under the current structure, is not visible to the consumer because to a Request for Information (RFI) information is not always located where the container cannot be readily removed published in the Federal Register (82 a reader would expect to find it. As a from the packaging. Packaging is FR 27212) on June 14, 2017. The RFI result of amendments to the regulations considered closed if the consumer must invited members of the public to submit over the years, certain provisions that open, rip, untie, unzip, or otherwise views and recommendations for would logically be grouped together are manipulate the package to remove the Treasury Department regulations that instead spread throughout a given part. container in order to view any of the can be eliminated, modified, or Accordingly, TTB is proposing to group mandatory information. streamlined, in order to reduce burdens. topics together in a more logical order, TTB has noted that today’s industry The comment period for the RFI closed with related provisions, where increasingly uses terms that apply to on October 31, 2017. appropriate, appearing in a single one commodity on labels of a different Eight comments on the FAA Act subpart. commodity. For example, TTB sees labeling regulations, including 28 The new subparts are restructured in many wine and malt beverage labels specific recommendations, were a progressive order starting with general that include distilled spirits terms or submitted in response to the RFI. For provisions, such as defining the terms

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used in that part and specifying who is Proposed parts 4, 5, and 7 of 27 CFR proposed §§ 4.63, 5.63, and 7.63. TTB subject to the regulations in that part. are each structured similarly. believes that this revised numbering of The ‘‘general provisions’’ subpart is Furthermore, within each part, the regulations will make it easier for followed by subparts setting forth the regulatory provisions that appear in the public to find relevant regulations circumstances under which a certificate more than one part will have the same and to compare regulations in the three of label approval (COLA) is required, number within the part. For example, parts. the regulations that set out the how to obtain a COLA, and what The table below shows the mandatory information for wine, information is required on the labels organization of the proposed subparts in and where it must appear. distilled spirits, and malt beverage labels, respectively, are found 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 Approval and Subpart B—Certificates of Label Approval and Subpart B—Certificates of Label Approval Certificates of Exemption from Label Ap- Certificates of Exemption from Label Ap- proval proval Subpart C—Alteration of Labels, Relabeling, Subpart C—Alteration of Labels, Relabeling, Subpart C—Alteration of Labels, Relabeling, and Adding Information to Containers and Adding Information to Containers and Adding Information to Containers Subpart D—Label Standards Subpart D—Label Standards Subpart D—Label Standards Subpart E—Mandatory Label Information Subpart E—Mandatory Label Information Subpart E—Mandatory Label Information Subpart F—Restricted Labeling Statements Subpart F—Restricted Labeling Statements Subpart F—Restricted Labeling Statements Subpart G—Prohibited Labeling Practices Subpart G—Prohibited Labeling Practices Subpart G—Prohibited Labeling Practices Subpart H—Labeling Practices That are Pro- Subpart H— Labeling Practices That are Pro- Subpart H— Labeling Practices That are Pro- hibited if They are Misleading hibited if They are Misleading hibited if They are Misleading Subpart I—Standards of Identity for Wine Subpart I—Standards of Identity for Distilled Subpart I—Classes and Types of Malt Bev- Spirits erages Subpart J—American Grape Variety Names Subpart J—Formulas Subpart J—Reserved Subpart K—Standards of Fill and Authorized Subpart K—Standards for Fill and Authorized Subpart K—Reserved Container Sizes Container Sizes Subpart L—Recordkeeping and Substantiation Subpart L—Recordkeeping and Substantiation Subpart L—Recordkeeping and Substantiation Requirements Requirements Requirements Subpart M—Penalties and Compromise of Li- Subpart M—Penalties and Compromise of Li- Subpart M—Penalties and Compromise of Li- ability ability ability Subpart N—Paperwork Reduction Act Subpart N—Paperwork Reduction Act Subpart N—Paperwork Reduction Act

B. Proposed Changes That Apply to 4, 5, and 7 that define the terms used (27 CFR part 13), which governs the Parts 4, 5 and 7 in those parts (proposed §§ 4.1, 5.1, and issuance, denial, and revocation of 7.1), to add definitions of the following COLAs. The definition of the term As discussed above, in proposing to terms: ‘‘brand name,’’ ‘‘certificate ‘‘certificate of exemption from label update its labeling regulations, one of holder,’’ ‘‘certificate of exemption from approval’’ is consistent with the TTB’s purposes has been to apply the label approval,’’ ‘‘certificate of label definition already in part 13 of the TTB same rules to wine, distilled spirits, and approval (COLA),’’ ‘‘distinctive or malt beverages, to the extent possible, as regulations. fanciful name,’’ and ‘‘net contents.’’ The definition of the term ‘‘Certificate long as different treatment is not The proposed rule defines the term of label approval (COLA)’’ is derived required by statute or by the nature of ‘‘brand name’’ as the name under which the commodity. Therefore, a number of a product or product line is sold. This from the definition set forth in part 13 the proposed changes to the regulations definition is consistent with the current of the TTB regulations, but includes apply to parts 4, 5 and 7. These understanding of the term and with some proposed revisions. The proposed proposed changes are described below, guidance provided in the Beverage definition is ‘‘A certificate issued on in the general order in which they Alcohol Manuals (BAMs), TTB P TTB Form 5100.31 that authorizes the appear in the proposed regulations. See 5120.3, 5110.7, and 5130.3, for wine, bottling of wine, distilled spirits, and the discussion in sections II C, II D, and distilled spirits, and malt beverages, malt beverages, or the removal of bottled II E of this document for provisions respectively, which are guidance wine, distilled spirits, and malt specific to wine, distilled spirits, and documents that provide the public with beverages from customs custody for malt beverages, respectively. interpretations of some of TTB’s introduction into commerce, as long as the product bears labels identical to the 1. Subpart A—General Provisions labeling regulations. The term ‘‘certificate holder’’ is used labels appearing on the face of the a. Definitions. Proposed subpart A in the proposed text of parts 4, 5, and certificate, or labels with changes includes several sections of general 7 to refer to industry members that have authorized by TTB on the certificate or applicability. These sections include obtained a COLA, certificate of otherwise.’’ The current definition in definitions of terms used throughout exemption from label approval, or part 13 recognizes that the COLA form these regulations, as well as sections distinctive liquor bottle approval from itself authorizes certain allowable cross-referencing other regulations that TTB. The proposed rule sets forth a revisions to a label that may be made by relate to the production and labeling of definition of ‘‘certificate holder’’ for the certificate holder without having to the alcohol beverage products at issue. parts 4, 5, and 7 that is largely obtain TTB approval. The revisions With regard to definitions, TTB is consistent with that definition of that made in the proposed definition proposing to amend the sections in parts term in part 13 of the TTB regulations specifically recognize that TTB may

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authorize revisions in other ways, such restricted to traditional glass bottles. b. General requirements and as by issuing guidance on the TTB Because of the restrictions on the size of prohibitions under the FAA Act. website. distilled spirits containers, the proposed Proposed §§ 4.3, 5.3, and 7.3 set out the The term ‘‘distinctive or fanciful definition does not include references to general requirements and prohibitions name’’ currently refers to a term that barrels. Furthermore, because there are under the FAA Act. Proposed §§ 4.3(a), must be used on a distilled spirits label, prescribed standards of fill for both 5.3(a), and 7.3(a) summarize the general together with a truthful and adequate wine and distilled spirits, the requirements regarding COLAs, as set statement of composition, when a definitions in parts 4 and 5 include a forth in greater detail in subpart B. distilled spirits product does not fall cross reference to those standard of fill Proposed §§ 4.3(b), 5.3(b), and 7.3(b) within a class and type that is specified regulations, to clarify that containers similarly summarize the prohibition in the regulations or on a malt beverage must be in certain sizes. against alteration, mutilation, label when a malt beverage is not The proposed rule amends the destruction, obliteration, or removal of known to the trade under a particular definition of the term ‘‘interstate or labels, as set forth in greater detail in designation. A distinctive or fanciful foreign commerce’’ in parts 4, 5 and 7 subpart C. Proposed §§ 4.3(c) and (d), name is optional on other distilled to remove the provision that included 5.3(c) and (d), and 7.3(c) and (d) set out spirits or malt beverage products. A commerce within any Territory as being the general labeling requirements of this distinctive or fanciful name is also interstate or foreign commerce. The part, as set forth in greater detail in optional for a wine, whether or not it FAA Act extends to the 50 States, the subparts D, E, F, G, H, and I. Finally, bears a statement of composition. District of Columbia, and Puerto Rico. proposed §§ 4.3(e) and 5.3(e) summarize The proposed rule defines the term As set forth in the definitions in the the general bottling and standards of fill ‘‘distinctive or fanciful name,’’ which is FAA Act, the term ‘‘State’’ included a requirements, which are set out in used in proposed parts 4, 5, and 7. The Territory and the District of Columbia, subpart K for wine and distilled spirits. term ‘‘distinctive or fanciful name’’ is and the term ‘‘Territory’’ meant Alaska, (Malt beverages are not subject to defined as a descriptive name or phrase Hawaii, and Puerto Rico. See 27 U.S.C. standard of fill requirements.) chosen to identify a product on the 211(a)(1). Since the enactment of the Proposed §§ 4.3(d), 5.3(d), and 7.3(d) label. It does not include a brand name, FAA Act in 1935, Alaska and Hawaii also set out for the first time in the class or type designation, statement of have become states. Furthermore, Puerto regulations TTB’s position that in order composition, or, in part 7 only, a Rico is now a Commonwealth, which to be labeled in accordance with the designation known to the trade or has affected the status of transactions regulations in these parts, a container consumers. that occur solely within Puerto Rico may not contain an adulterated alcohol The proposed rule adds a definition of under the FAA Act. See ATF Ruling 85– beverage within the meaning of the ‘‘net contents’’ in parts 4, 5, and 7. The 5, which addressed this issue in the Federal Food, Drug, and Cosmetic Act. ‘‘net contents’’ is the amount, by context of the trade practice regulations It is TTB’s longstanding position that volume, of wine, distilled spirits, or and relied, in part, on Cordova & adulterated distilled spirits, wines, and malt beverages, respectively, held in a Simonpietri Insurance Agency, Inc. v. malt beverages are mislabeled within container. The net contents statement is Chase Manhattan Bank, 649 F. 2d 36 the meaning of the FAA Act, even if the mandatory labeling information. (1st Cir. 1981). Therefore, the proposed bottler or importer of the product in The proposed regulations also include rule amends the definition of ‘‘interstate question has obtained a COLA or an amendments to several definitions that or foreign commerce’’ to remove the approved formula. See Industry Circular appear in the current regulations. These language indicating that commerce 2010–8, dated November 23, 2010. No changes reflect current TTB policy and within Puerto Rico is interstate adulterated distilled spirits, wines, or are clarifying in nature. commerce. malt beverages can satisfy the labeling The definition of the term ‘‘container’’ The proposed rule amends the requirements of the FAA Act. Subject to is amended in parts 4 and 7 and is definition of the term ‘‘person’’ in all the jurisdictional requirements of the added to part 5 to replace the definition three parts by adding ‘‘limited liability FAA Act, mislabeled distilled spirits, of the term ‘‘bottle.’’ The proposed rule company’’ to specifically reflect TTB’s wines, and malt beverages, including defines ‘‘container’’ in parts 4 and 7 as current position that limited liability adulterated products, may not be sold or any can, bottle, box with an internal companies fall under the definition of a shipped, delivered for sale or shipment, bladder, cask, keg, barrel, or other ‘‘person.’’ or otherwise introduced or received in closed receptacle, in any size or The proposed rule removes the term interstate or foreign commerce, or material, that is for use in the sale of ‘‘advertisement’’ from the definition removed from customs custody for wine or malt beverages, respectively, at sections in parts 4, 5, and 7, because consumption, by a producer, importer, retail. Aside from editorial changes, this these parts will no longer provide or wholesaler, or other industry member differs from the current definitions in substantive rules regarding subject to 27 U.S.C. 205(e). that it specifically incorporates a box advertisements. Instead, the proposed c. Exports in bond. The current with an internal bladder, sometimes rule moves the regulations regarding regulations exempting products for referred to as a ‘‘bag in a box.’’ advertisements to a new proposed part export from the labeling regulations The term ‘‘container’’ will replace the 14. under the FAA Act are somewhat term ‘‘bottle’’ in the part 5 regulations Finally, in this subsection and inconsistent. In existing §§ 4.80 and for distilled spirits and is defined as any throughout parts 4 and 5, the proposed 7.60, wine and malt beverages can, bottle, box used to protect an rule updates references to the IRC. The ‘‘exported in bond’’ are exempted from internal bladder, cask, keg, or other existing regulations include certain the requirements of those respective closed receptacle, in any size or references to terms (such as ‘‘rectifier’’ parts. However, current § 5.1, which is material, that is for use in the sale of or ‘‘bonded wine storeroom’’) from entitled ‘‘General,’’ provides that part 5 distilled spirits at retail. TTB believes previous versions of the IRC. These ‘‘does not apply to distilled spirits for that the revised definition will make it terms are no longer used in the current export.’’ clearer that containers of distilled spirits tax laws. The proposed rule updates TTB believes that the exemptions in may be made in a variety of materials these references to include terms that all three parts should be consistent and and sizes, and that the term is not are currently used in the IRC. should be restricted to exportations in

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bond. In general, the bottler is required * * * each producer and importer of alcohol revisions will clarify this position for to obtain a COLA prior to removal of the beverages is responsible for ensuring that the the public and industry members. product from the premises. Products ingredients in its products comply with the b. Certificates of exemption. Proposed that are removed subject to tax may laws and regulations that FDA administers. §§ 4.23 and 5.23 incorporate current subsequently be exported or may end up TTB’s approval of a COLA or formula does regulatory requirements with regard to not imply or otherwise constitute a the issuance of certificates of exemption in the domestic market, and therefore determination that the product complies with are not exempted from the labeling the [Federal Food, Drug, and Cosmetic Act], to bottlers of wine and distilled spirits. requirements of the FAA Act. including a determination as to whether the Consistent with the current regulations, Accordingly, proposed §§ 4.8, 5.8, and product is adulterated because it contains an the proposed rule provides that the 7.8 provide that products exported in unapproved food additive. bottler may obtain a certificate of bond directly from a bonded wine exemption upon establishing, to the See also Industry Circular 62–33. The premises, distilled spirits plant, or satisfaction of the appropriate TTB instructions on the forms for formula brewery, respectively, or from customs officer, that the wine or spirits to be approval repeat this message. Now, TTB custody, are not subject to the bottled will be offered for sale only is proposing to codify this position in regulations under these parts. The within the State in which bottled, and the regulations. amendment clarifies that exportation in that they will not be sold, offered for e. Cross references to other bond does not include exportation after sale, shipped or delivered for shipment, regulations. Proposed §§ 4.10, 5.10, and wine, distilled spirits, or malt beverages or otherwise introduced, in interstate or 7.10 are derived from current §§ 4.5, 5.2, have been removed for consumption or foreign commerce. sale in the United States, with and 7.4 and include an expanded list of Consistent with the instructions for appropriate tax determination or regulations implemented by other Item 18 that currently appear on the payment. This is only a clarifying Federal agencies of which industry TTB Form 5100.31, the proposed change in parts 4 and 7. With regard to members should be aware. While the regulations provide that, as a condition part 5, TTB seeks comments on whether list does not purport to be for receiving exemption from label this proposed change will impact comprehensive, TTB believes it will be approval, the label covered by a existing practices, and if so, what the helpful to industry members. certificate of exemption must include impact will be. 2. Subpart B—Certificates of Label the statement, ‘‘For sale in [name of d. Compliance with Federal and State Approval (for Wine, Distilled Spirits State] only.’’ It should be noted that it requirements. For the first time, parts 4, and Malt Beverages) and Certificates of is TTB’s current practice to issue 5, and 7, will make clear that Exemption From Label Approval (for certificates of exemption conditioned on compliance with the requirements of the Wine and Distilled Spirits) the applicant’s agreement to add this respective parts relating to the labeling statement to the container. Under the and bottling of wine, distilled spirits a. Certificates of label approval proposed regulations, TTB will require and malt beverages does not relieve (COLAs) and certificates of exemption applicants to include this statement on industry members from responsibility from label approval. The regulations a label submitted with the application for complying with other applicable implementing the statutory requirement for a certificate of exemption. Federal and State requirements (see for (COLAs) (for wine, distilled spirits c. COLAs for Imported Wine, Distilled proposed §§ 4.9, 5.9, and 7.9). and malt beverages) and certificates of Spirits, and Malt Beverages. Consistent These sections also provide that it exemption (for wine and distilled with current regulations, proposed remains the responsibility of the spirits) are reorganized for clarity. The §§ 4.24, 5.24, and 7.24 provide that industry member to ensure that any proposed regulations also set forth, for wine, distilled spirits, and malt ingredient used in the production of the first time, some of the things that a beverages, imported in containers, are alcohol beverages complies fully with COLA does not do. Specifically, the not eligible for release from customs all applicable Food and Drug proposed regulations provide that, custody for consumption unless the Administration (FDA) regulations among other things, a COLA does not person removing the wine, distilled pertaining to the safety of food confer trademark protection; relieve the spirits, or malt beverages has obtained ingredients and additives and that TTB certificate holder from its responsibility and is in possession of a COLA. The may at any time request documentation to ensure that all ingredients used in the regulations, as amended by the final to establish such compliance. In production of wine, distilled spirits, or rule facilitating the use of the addition, these three sections provide malt beverages comply with applicable International Trade Data System (ITDS) that it remains the responsibility of the requirements of the FDA with regard to (T.D. TTB–145, 81 FR 94186, December industry member to ensure that ingredient safety; or relieve the 22, 2016), require importers who file containers are made of suitable certificate holder from liability for electronically to file with CBP the materials that comply with all violations of the FAA Act, the ABLA, identification number assigned to the applicable FDA health and safety the IRC, or related regulations and approved COLA. If the importer is not regulations for the packaging of alcohol rulings. filing electronically, the importer must beverages for consumption and that TTB The proposed revisions reflect the provide a copy of the COLA to CBP at may at any time request documentation longstanding policy of TTB and its the time of entry. to establish such compliance. predecessor agencies. Furthermore, the d. Administrative rules. In proposed It is TTB’s longstanding position that COLA form (TTB Form 5100.31, subpart B of parts 4, 5, and 7, several its review of labels and formulas does Application for and Certification/ sections are grouped under the heading not relieve the industry member from its Exemption of Label/Bottle Approval), of ‘‘Administrative Rules.’’ These responsibility to ensure compliance currently specifically provides that the sections set forth requirements for with applicable FDA regulations. See, issuance of a COLA does not confer presenting COLAs to government e.g., Industry Circular 2010–8, dated trademark protection and does not officials; submitting formulas, samples, November 23, 2010, entitled ‘‘Alcohol relieve the applicant from liability for and other documentation related to Beverages Containing Added Caffeine,’’ violations of the FAA Act, the ABLA, obtaining or using COLAs; and applying in which TTB reminded industry the IRC, or related regulations and for and obtaining permission to use members as follows: rulings. TTB believes that these personalized labels.

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The requirement that a certificate that will make use of this form unnecessarily complicated and holder must present a COLA upon mandatory, entirely replacing the burdensome for both the regulated request by any duly authorized various industry-specific forms and industries and TTB. Accordingly, we representative of the United States formats currently set forth in the TTB propose in this document to amend the Government (at proposed §§ 4.27, 5.27, regulations. Until such a change occurs, TTB regulations in parts 4, 5, and 7 to and 7.27) reflects current provisions (at this form may be used voluntarily as an provide that a formula may be filed current §§ 4.51, 5.55(c), and 7.42) but alternate procedure. A producer or electronically by using Formulas adds the provision that the COLA may importer who wishes to use TTB F Online, or it may be submitted on paper be the original or a copy (including an 5100.51 may submit that form in lieu of on TTB Form 5100.51. TTB anticipates electronic copy). the forms prescribed in the regulations proposing similar revisions to the IRC i. Formula requirements. TTB without first requesting approval from regulations in the near future. TTB notes currently has specific formula TTB to do so. that many industry members now use requirements for certain domestic Current regulations in §§ 4.38(h), Formulas Online to submit formulas, products. These are found in parts 5 and 5.33(g), and 7.31(d) authorize TTB to and encourages all industry members to 19 for distilled spirits, in part 24 for request more information about the consider the advantages of online filing. wine, and in part 25 for beer. However, contents of a wine, distilled spirits ii. Personalized labels. The proposed TTB often finds it necessary to obtain product or malt beverage, but the regulations also set forth, for the first more specific information about a language in part 7 is different from the time, the process for applicants seeking product that is not otherwise subject to language in parts 4 and 5. Sections label approval to receive permission the formula requirements in connection 4.38(h) and 5.33(g) provide that, upon from TTB to make certain changes in with the COLA review process. request of the appropriate TTB officer, order to personalize labels without For many imported alcohol beverage a bottler or importer must submit a full having to resubmit the labels for TTB products, TTB requires a product and accurate statement of the contents approval (see §§ 4.29, 5.29, and 7.29). evaluation to determine whether a of any container to which labels are to Personalized labels may contain a proposed label identifies the product in be or have been affixed. The regulations personal message, picture, or other an adequate and non-misleading way. in § 7.31(d) state that the appropriate artwork that is specific to the consumer Pre-COLA product evaluation entails a TTB officer may require an importer to who is purchasing the product. For review of a product’s ingredients and submit a formula for a malt beverage, or example, a producer may offer custom formulation and also may include a a sample of any malt beverage or labels to individuals or businesses that laboratory analysis of the product. ingredients used in producing a malt commemorate an event such as a Laboratory analysis involves a chemical beverage, prior to or in conjunction with wedding or grand opening. analysis of a product. Such pre-COLA the filing of an application for a COLA. Consistent with current policy, as set product evaluations ensure that: TTB is proposing to standardize the forth in TTB G 2011–5 and TTB G 2010– • No alcohol beverage contains a regulatory language in parts 4, 5 and 7 1, the proposed regulations provide that prohibited ingredient. on this issue. Accordingly, proposed label applicants who intend to offer • Ingredients are used within §§ 4.28, 5.28, and 7.28 provide that the personalized labels must submit a limitations or restrictions prescribed by appropriate TTB officer may require a template for the personalized label with TTB or another Federal agency, as bottler or importer to submit a formula, their application for label approval, and applicable. the results of laboratory testing, and note on the application a description of • Appropriate tax and product samples of the product or ingredients the specific personalized information classifications are made. used in the final product, prior to or in that may change. If the application • Alcohol beverages labeled without a conjunction with the review of an complies with the regulations, TTB will sulfite declaration contain less than 10 application for label approval. The issue a COLA with a qualification that parts per million (ppm) of sulfur proposed regulations also provide that allows the personalization of labels. The dioxide. TTB may request such information after qualification will allow the certificate The type of pre-COLA product the issuance of a COLA, or in holder to add or change items on the evaluation required for a particular connection with any product that is personalized label such as salutations, product depends on that product’s required to be covered by a COLA. The names, graphics, artwork, formulation and origin. Industry proposed regulations also provide that, congratulatory dates and names, or Circular 2007–4, ‘‘Pre-COLA Product upon request of the appropriate TTB event dates, without applying for a new Evaluation,’’ dated September 11, 2007, officer, a bottler or importer must COLA. All of these items on includes a list of the imported products submit a full and accurate statement of personalized labels must comply with for which TTB currently requires the contents of any container to which the regulations. formulas and other pre-COLA analyses. labels are to be or have been affixed, as The proposed rule provides that The Industry Circular also announced well as any other documentation on any certain changes are not permitted on that TTB had developed a new form that issue pertaining to whether the wine, personalized labels. These include the may be submitted in lieu of the various distilled spirits, or malt beverage is addition of any information that forms and formats otherwise prescribed labeled in accordance with the TTB discusses either the alcohol beverage or in the regulations for specific products. regulations. These amendments reflect the characteristics of the alcohol TTB developed the form, TTB F current TTB policy. beverage, as well as information that is 5100.51, ‘‘Formula and Process for As noted above, current TTB inconsistent with or in violation of the Domestic and Imported Alcohol regulations and industry practice provisions of the TTB regulations or any Beverages,’’ to simplify the formula involve the submission of alcohol other applicable law or regulation. submission process and to provide a beverage formulas in varying forms and more consistent means of information formats depending on the type of 3. Subpart C—Alteration of Labels, collection across all commodity areas alcohol beverage and whether the Relabeling, and Adding Information to for both imported and domestic product is domestically produced or Containers products. The Circular stated that TTB imported. TTB believes that this As previously noted, the COLA intended to pursue a regulatory change multiplicity of procedures is requirements of the FAA Act are

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intended to prevent the sale or shipment no way authorizes the placement of provide that, under the supervision of or other introduction in interstate or labels on containers that do not U.S. customs officers, imported wine, foreign commerce of distilled spirits, accurately reflect the brand, bottler, distilled spirits, and malt beverages, wine, or malt beverages that are not identity, or other characteristics of the respectively, in containers in customs bottled, packaged, or labeled in product; nor does it relieve the person custody may be relabeled without compliance with the regulations. To conducting the relabeling operations obtaining separate permission from TTB ensure that products with proper labels from any obligation to comply with the for the relabeling activity. Such are not altered once such products have regulations in this part and with State containers must bear labels covered by been removed from bond, section 105(e) or local law, or to obtain permission a COLA if and when they are removed of the FAA Act (27 U.S.C. 205(e)) from the owner of the brand where from customs custody for consumption. further provides: otherwise required. Proposed §§ 4.43, 5.43, and 7.43 cover The existing regulations in parts 4 and relabeling activities that require separate It shall be unlawful for any person to alter, mutilate, destroy, obliterate, or remove any 7 require persons wishing to relabel to written authorization from TTB. It is mark, brand, or label upon distilled spirits, obtain written permission from TTB, rare that someone other than the wine, or malt beverages held for sale in with certain exceptions, while the original bottler or importer will need to interstate or foreign commerce or after regulations in part 5 require persons relabel the product, but these situations shipment therein, except as authorized by wishing to relabel to obtain a COLA sometimes occur. For example, Federal law or except pursuant to regulations from TTB. TTB believes that the sometimes unlabeled wine containers of the Secretary of the Treasury authorizing regulations in parts 4, 5 and 7 should be are transferred between bonded wine relabeling for purposes of compliance with updated to cover all of the situations in premises. While the bottler is required the requirements of this subsection or of which people need to relabel. The to obtain a COLA to cover these State law. existing regulations in part 5 allow containers prior to bottling, the Regulations that implement these persons who are eligible to obtain transferee, who is labeling the provisions of the FAA Act, as they relate COLAs covering the products, such as containers, will sometimes want to put to wine, distilled spirits, and malt bottlers and importers, to relabel the additional labels on the containers. In beverages, are set forth in parts 4, 5, and products even after they have been this case, the transferee must obtain 7, respectively. Current §§ 4.30 and 7.20 removed from bottling premises or TTB approval to place the new labels on provide that someone wanting to relabel customs custody, respectively. The the products and must be in possession must receive prior written permission proposed rule extends this provision to of the necessary documentation to from the appropriate TTB officer. parts 4 and 7. However, the language in substantiate any new claims that will Current § 5.31 does not require prior existing parts 4 and 7 allows persons appear on the labels. written approval for the relabeling of who are not eligible to obtain COLAs, Thus, the proposed regulations distilled spirits, as long as such such as retailers, to obtain written provide that persons who are not relabeling is done in accordance with an permission from TTB to relabel eligible to obtain a COLA (such as approved COLA. products that are in the marketplace retailers or permittees other than the In proposed subpart C of parts 4, 5, when unusual circumstances exist. The bottler) may obtain written and 7, TTB proposes conforming proposed rule extends this provision to authorization for relabeling if the facts changes to the regulations that part 5. show that the relabeling is for the implement this statutory prohibition. Accordingly, proposed §§ 4.42(a), purpose of compliance with the This subpart also sets forth the 5.42(a), and 7.42(a) provide that requirements of this part or of State law. situations in which a person must apply proprietors of bonded wine premises, The written application must include for and obtain written approval prior to distilled spirits plant premises, and copies of the original and proposed new relabeling. breweries, respectively, may relabel labels; the circumstances of the request, Proposed §§ 4.41(a), 5.41(a), and domestically bottled products prior to including the reason for relabeling; the 7.41(a) set forth the statutory their removal from, and after their number of containers to be relabeled; prohibition under 27 U.S.C. 205(e) on return to bond at, the bottling premises, the location where the relabeling will the alteration of labels. The proposed with labels covered by a COLA, without take place; and the name and address of language provides that the prohibition obtaining separate permission from TTB the person who will be conducting the applies to any persons, including for the relabeling activity. Proposed relabeling operations. retailers, holding wine for sale in (or §§ 4.42(b), 5.42(b), and 7.42(b) provide TTB is proposing to add to the malt after shipment in) interstate or foreign that proprietors of bonded wine beverage regulations a provision that is commerce. premises, distilled spirits plant already found in slightly different forms Proposed §§ 4.41(b), 5.41(b), and premises, and breweries, respectively, in parts 4 and 5. This provision 7.41(b) provide that for purposes of the may relabel domestically bottled authorizes, without any requirement for relabeling activities authorized by this products after removal from the bottling separate written permission from TTB, subpart, the term ‘‘relabel’’ includes the premises with labels covered by a the addition of a label identifying the alteration, mutilation, destruction, COLA, without obtaining separate wholesaler, retailer, or consumer as long obliteration, or removal of any existing permission from TTB for the relabeling as the label contains no reference to the mark, brand, or label on the container, activity. This would, for example, allow characteristics of the product, does not as well as the addition of a new label a brewer to replace damaged labels on violate the labeling regulations, and (such as a sticker that adds information containers that are being held at a does not obscure any existing labels. about the product or information wholesaler’s premises, as long as the The proposed regulations will engraved on the container) to the labels are covered by a COLA, without standardize this provision for wine, container, and the replacement of a obtaining separate permission from TTB distilled spirits, and malt beverages (see label with a new label bearing identical to remove the existing labels and proposed §§ 4.44, 5.44, and 7.44). information. replace them with either identical or TTB believes that the proposed Proposed §§ 4.41(c), 5.41(c), and different approved labels. regulations will enable permittees, 7.41(c) contain new language that Similarly, proposed §§ 4.42(c) and (d), brewers, and retailers to relabel alcohol provides that authorization to relabel in 5.42(c) and (d), and 7.42(c) and (d) beverage containers when there is a

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good reason to do so, while still the label is transparent. The text also provide additional flexibility to industry restricting the alteration of labels for clarifies that, with one exception (for members, adequately protect the containers that are in the marketplace. the required aspartame statement), consumer by ensuring that mandatory We seek comments from the industry on mandatory information may appear in information on containers is readily whether the proposed regulations will lower case letters, capital letters, or both apparent to consumers. protect the integrity of labels in the capital and lower-case letters. In proposed §§ 4.55, 5.55, and 7.55, marketplace without imposing undue The proposed rule makes changes to TTB is proposing to amend the language burdens on the industry. current provisions pertaining to requirements that are currently found in minimum type size requirements. The §§ 4.38(c), 5.33(c), and 7.28(c), to allow 4. Subpart D—Label Standards current regulations setting forth all mandatory information to appear in The current provisions governing minimum type size requirements Spanish when products are bottled for legibility of labels, type size, and (current §§ 4.38(b), 5.33(b)(5), 5.33(b)(6), sale in the Commonwealth of Puerto language requirements are found within and 7.28(b)) prescribe specific heights in Rico. Consistent with the current one section of parts 4, 5, and 7 for wine, millimeters for mandatory information. regulations, the proposed regulations distilled spirits, and malt beverages, The height specification is dependent generally require mandatory respectively. See current §§ 4.38, 5.33, on the size of the container. Among information, other than the brand name, and 7.28. Proposed subpart D includes other things, the proposed regulations to appear in the English language. The those and other general provisions. provide that the minimum type size proposed regulations also allow for These provisions are predominantly applies to all capital and lowercase additional statements in a foreign derived from and consistent with letters. language, including translations of requirements set forth in the current The proposed rule also makes changes mandatory information that appears regulations. to current provisions pertaining to elsewhere in English on the label, to TTB is proposing to amend the maximum type size requirements for the appear on labels and containers, as long sections that set forth legibility alcohol content statement for wine and as those statements do not conflict with, requirements for the mandatory malt beverages. Current § 4.38(b)(3) or contradict, the requirements of parts information that is required to be placed provides that the alcohol content 4, 5, and 7. Finally, these sections on labels (proposed §§ 4.52, 5.52, and statement on containers of 5 liters or provide that the country of origin may 7.52). These sections are derived from less may not appear in script, type, or be in a language other than English current §§ 4.38(a), 5.33(a) and (b), and printing that is more than 3 millimeters when allowed by CBP regulations. 7.28(a). in height. This section further provides The proposed regulations set forth the that the alcohol content statement on 5. Subpart E—Mandatory Label requirement that mandatory information containers of wine may not be set off Information must be ‘‘separate and apart’’ from with a border or otherwise accentuated. Proposed subpart E in parts 4, 5 and descriptive or explanatory information, TTB is retaining the type size 7 sets forth the information that is referred to in the proposed rule as requirement, but removing the required to appear on alcohol beverage ‘‘additional information,’’ with a few prohibition against accentuating the labels (otherwise known as ‘‘mandatory exceptions. First, brand names are alcohol content statement. This is in information’’). This subpart also exempt from this requirement. Second, keeping with TTB’s current policy, prescribes where and how mandatory this provision does not preclude the which allows alcohol content information must appear on such labels. addition of brief optional phrases as part statements to be bolded. a. What constitutes a label. TTB is of the class and type designation (such In general, current § 7.28(b)(3)(ii) proposing to add regulatory text to all as, ‘‘premium malt beverage’’), the name provides that all portions of the alcohol three parts to specify what TTB will and address statement (such as, content statement for malt beverages consider to be the ‘‘label’’ for purposes ‘‘Proudly produced and bottled by ABC must be of the same size and kind of of mandatory information. Proposed Winemaking Co. in Napa, CA, for over lettering and of equally conspicuous §§ 4.61(a), 5.61(a), and 7.61(a) address 30 years’’), or other information color, and not larger than 3 millimeters different forms that labels take (for required by the regulations, as long as for containers of 40 fluid ounces or less, example, paper, plastic or film labels the additional information does not and not larger than 4 millimeters for affixed to the container; information detract from the prominence of the containers larger than 40 fluid ounces. etched, engraved, sandblasted, or mandatory information. Finally, the TTB is retaining the maximum alcohol otherwise carved into the surface of the mandatory statements related to content type size requirements for wine container; and information branded, disclosure of certain specified and malt beverages in §§ 4.53 and 7.53, stenciled, painted, printed, or otherwise ingredients (FD&C Yellow No. 5, respectively. directly applied to the surface of the cochineal extract or carmine, sulfites, TTB is proposing to add sections to container). For purposes of the net and aspartame) may not include all three parts (proposed §§ 4.54, 5.54, contents statement and the name and additional information. It should be and 7.54) to make it explicit that address statement only, the term ‘‘label’’ noted that the aspartame statement, like mandatory information may not be includes information blown, embossed, the health warning statement required obscured in whole or in part. This or molded into the container as part of by part 16, must be separate and apart requirement reflects current policy. the process of manufacturing the from all other information. Although it certainly is a long-standing container. The proposed regulations expand on component of ‘‘legibility,’’ TTB believes Proposed §§ 4.61(b), 5.61(b), and the requirement that mandatory that industry members would benefit 7.61(b) clarify that placement of information must appear on a from the explicit statement of this information on certain parts of alcohol ‘‘contrasting background’’ by adding policy in the regulatory text of parts 4, beverage containers (such as the bottom examples of contrasting backgrounds 5, and 7. of the container, caps, corks, or other that would satisfy regulatory TTB seeks comments on whether the closures [unless authorized to bear requirements. The color of the container proposed changes to the placement and mandatory information by the and of the alcohol beverage in the legibility requirements for mandatory appropriate TTB officer], and foil or container must be taken into account if information, which are intended to heat shrink capsules) will not meet the

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requirements for mandatory information and 5.42(a) apply to bottles, labels on statements or representations prohibited that must appear on labels. This bottles, any individual covering, carton, by the labeling regulations from provision is intended to take into or other container of such bottles used appearing on containers or labels. The account unique types of containers, for sale at retail, and any written, proposed regulations also provide, such as pudding or gelatin-type cups, printed, graphic, or other matter consistent with existing regulations in where the mandatory information is accompanying such bottles to the parts 4 and 5 but as a new requirement sometimes authorized to appear on the consumer. Yet, the advertising for part 7, that closed packaging, top of the container. Information on regulations in existing §§ 4.61 and 5.62 including sealed opaque coverings, these parts of the container are still define the term ‘‘advertisement,’’ in cartons, cases, carriers, or other subject to the restrictions and pertinent part, as including any written packaging used for sale at retail, must prohibitions set forth in proposed or verbal statement, illustration, or include all mandatory information subparts F, G and H of parts 4, 5, depiction, whether it appears in ‘‘a required to appear on the label. and 7. newspaper, magazine, trade booklet, Furthermore, the proposed Proposed §§ 4.61(c), 5.61(c), and menu, wine card, leaflet, circular, regulations provide greater clarity than 7.61(c) further clarify longstanding mailer, book insert, catalog, promotional the current provisions about when policy that any materials that material, sales pamphlet, or in any packaging is considered closed. accompany the container to the written, printed, graphic, or other matter Proposed §§ 4.62, 5.62, and 7.62 provide consumer but are not firmly affixed to accompanying the [container] bottle,’’ that packaging is considered closed if the container, including booklets, but excluding ‘‘[a]ny label affixed to any the consumer must open, rip, untie, leaflets, and hang tags, are not ‘‘labels’’ [container] bottle * * * or any unzip, or otherwise manipulate the for purposes of proposed parts 4, 5, and individual covering, carton, or other package to remove the container in 7. Such materials are instead subject to [wrapper of such container] [container order to view any of the mandatory the advertising regulations in proposed of the bottle] which constitutes a part of information. Packaging is not new part 14 of the TTB regulations. This the labeling’’ under the labeling considered closed if a consumer could is a clarifying change for parts 4 and 5, regulations. view all of the mandatory information consistent with the intent of T.D. ATF– The current labeling regulations in on the container by merely lifting the 180 (49 FR 31667, August 8, 1984), part 7 do not include regulations similar container up, or if the packaging is which explained in its preamble that to current §§ 4.38a and 5.41. However, transparent or designed in a way that all ‘‘[l]abels must be firmly affixed to the as set forth at current § 7.29(a) and (h), of the mandatory information can easily container, hang tags are usually tied or the prohibited practices in the labeling be read by the consumer without having slipped over the neck of the bottle. regulations for malt beverages apply to to open, rip, untie, unzip, or otherwise Therefore, when other matter containers, any labels on such manipulate the package. TTB seeks accompanies the container and is not containers, or any cartons, cases, or comment on whether TTB should firmly affixed as a label, such matter is individual coverings of such containers require mandatory or dispelling advertising material and must bear the used for sale at retail, as well as to any information to appear on open mandatory statements.’’ written, printed, graphic, or other packaging when part of the label is b. Packaging (including cartons, material accompanying malt beverage obscured. coverings, and cases). Current containers to the consumer. The current TTB solicits comments on whether regulations in §§ 4.38a and 5.41 set out advertising regulations in part 7, like the the proposed rules will require rules for the placement of information advertising regulations in parts 4 and 5, significant change to labels, containers, on bottle cartons, booklets, and leaflets. define the term ‘‘advertisement’’ (in or packaging materials. We also solicit Briefly, these regulations provide that current § 7.51) to include, in pertinent comments on whether the proposed individual coverings, cartons, or other part, any written or verbal statement, revisions will provide better containers of the bottle used for sale at illustration, or depiction, whether it information to the consumer and make retail (that is, other than a shipping appears in ‘‘a newspaper, magazine, it easier to find mandatory information container), as well as any written, trade booklet, menu, wine card, leaflet, on labels, containers, and packages. printed, graphic, or other matter circular, mailer, book insert, catalog, c. Placement rules. Mandatory accompanying the bottle to the promotional material, sales pamphlet, or information includes the brand name, consumer shall not contain any in any written, printed, graphic or other the class and type designation, alcohol statement, design, device or graphic, matter accompanying the container, content, net contents, name and address pictorial, or emblematic representation representations made on cases * * * or of the responsible party (such as the prohibited by the labeling regulations. in any other media;’’ but excluding any producer, bottler, or importer), and The current regulations also require ‘‘label affixed to any container of malt disclosure of certain ingredients and the placement of mandatory label beverages; or any coverings, cartons, or processes. The current regulations have information on sealed opaque coverings, cases of containers of malt beverages placement requirements for mandatory cartons, or other containers used for sale used for sale at retail which constitute information––some mandatory at retail (but not shipping containers). a part of the labeling’’ under the labeling information must appear on the ‘‘brand Coverings, cartons, or other containers regulations. label,’’ and other mandatory information of the bottle used for sale at retail that TTB believes that the existing may appear on any label. The are designed so that the bottle is easily regulations create some confusion as to regulations in parts 4 and 7 define the removable may display any information when a case or hang tag constitutes brand label as the label carrying, in the that is not in conflict with the label on labeling and when it constitutes usual distinctive design, the brand the bottle contained therein. However, advertising. Accordingly, TTB is name. The regulations in part 5 define any brand names or designations must proposing identical regulations in the brand label, in part, as the principal be displayed in their entirety, with any proposed §§ 4.62, 5.62, and 7.62 to display panel that is most likely to be required modifications and/or address packaging. The proposed displayed, presented, shown, or statements of composition. regulations provide, consistent with examined under normal and customary Thus, the prohibited practices for existing regulations in parts 4, 5 and 7, conditions of display for retail sale, and labeling set forth in existing §§ 4.39(a) that packaging may not include any any other label appearing on the same

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side of the bottle as the principal member that is bottling the product. and 7.68 require the name and address display panel. Bottlers of distilled spirits or malt of the importer when the product is TTB proposes to provide more beverages that utilize one of the latter imported in containers. The proposed flexibility in the placement of the two options must mark the labels using regulations clarify that for purposes of mandatory information for wine, a coding system that enables the bottler these sections, the importer is the distilled spirits, and malt beverages by and TTB to trace the actual place of holder of an importer’s basic permit eliminating the concept of a defined bottling of each container. This both making the original Customs entry into ‘‘brand label.’’ The specific proposals protects the revenue and allows for the the United States, or is the person for for locating mandatory information on tracing of containers in the event of an whom such entry is made, or the holder labels for each commodity will be adulteration issue. of an importer’s basic permit who is the included in the commodity-specific TTB is aware that, with the growing agent, distributor, or franchise holder discussions later in the preamble. number of craft brewers and craft for the particular brand of imported Where placement requirements exist, distillers in the marketplace, there may alcohol beverages and who places the the proposed rule provides more be more interest among consumers as to order abroad. These provisions mirror specific terminology. Instead of where malt beverages are brewed and the policy set forth in Revenue Ruling requiring mandatory information to be where distilled spirits are distilled. On 71–535 with regard to the name and in ‘‘direct conjunction’’ with other the other hand, TTB also wishes to address requirements applicable to mandatory information, the proposed provide industry members with importers, and the ruling will be regulations clarify when such flexibility in their labeling statements, superseded by the proposed rule. information must be immediately to accommodate the growing number of Proposed §§ 4.67, 5.67, and 7.67 adjacent to other information, and when arrangements where products are address the labeling of products bottled it may be in the same field of vision as produced or bottled pursuant to after importation. If the product is other information. contractual arrangements. One of the bottled after importation in bulk, by or d. Brand name. Proposed §§ 4.64, major reasons for allowing the use of for the importer thereof, the proposed 5.64, and 7.64 set forth requirements for principal places of business and rules require an ‘‘imported and bottled brand names of wine, distilled spirits, multiple addresses on labels is to allow by’’ or ‘‘imported by and bottled for’’ and malt beverages, respectively. Most industry members to use a single label statement, as appropriate. of the provisions in these sections are for their products rather than having to The proposed regulations in §§ 4.67, commodity specific and are therefore seek approval of multiple labels. TTB 5.67, and 7.67 specifically address the discussed individually later in this notes that, under both the existing and name and address requirements document. proposed regulations, industry members applicable to wine, distilled spirits, and However, one proposed change is are always free to include optional malt beverages that are imported in bulk made in all three parts: TTB is statements that provide consumers with and then subject to further production proposing to remove a provision for the more information about their or blending activities in the United continued use of certain trade names of production and bottling processes if States. foreign origin that had been used for at they wish. In section 1421 of the Taxpayer Relief least five years immediately preceding TTB seeks comments from all Act of 1997, Public Law 105–34, August 29, 1935 (the date the FAA Act interested parties, including industry Congress enacted a new provision in the was enacted). Although the law still members and consumers, on whether IRC which permits the transfer of beer authorizes the use of these names, TTB the proposed labeling requirements in bulk containers from customs believes that there is no need to retain provide adequate information to the custody to internal revenue bond at a this provision in the regulations, given consumer while avoiding undue brewery. After transfer to internal that it refers to names that have been burdens on industry members. TTB also revenue bond at a brewery, imported used for more than 85 years. seeks comments on whether the beer may be bottled or packed without e. Name and address for domestically standards for wine labels should change or with only the addition of bottled products. In the regulations on continue to require specific information water and carbon dioxide, or may be the name and address of bottlers and about the place where production and/ blended with domestic or other producers of wine, distilled spirits, and or bottling operations occurred. imported beer and bottled or packed. malt beverages, TTB is making editorial f. Name and address for imported In ATF Procedure 98–1, TTB’s changes to existing requirements. alcohol beverages. The name and predecessor agency provided guidance As previously mentioned, the FAA address inform the consumer of the to brewers and bottlers for the labeling Act provides that wine, distilled spirits, identity of the importer of the alcohol of imported malt beverages bottled in and malt beverage labels must contain beverage product and the location of the the United States. This guidance was certain mandatory information, importer’s principal place of business. necessary because the existing including the name of the manufacturer, The current regulations at § 4.35(b), regulations in part 7 do not address the bottler, or importer of the product. See 5.36(b), and 7.25(b) provide that, on labeling of imported malt beverages that 27 U.S.C. 205(e)(2). The regulations for labels of imported wines, distilled are bottled in the United States, or the distilled spirits and malt beverage labels spirits and malt beverages, respectively, labeling of imported malt beverages that currently provide more flexibility than the words ‘‘imported by,’’ or a similar are blended with other imported malt the regulations for wine labels. Most appropriate phrase, must be stated, beverages or with domestic malt importantly, wine labels must show the followed immediately by the name of beverages, and then bottled or packed in name of the bottler and the place where the permittee who is the importer, or the United States. bottled, while bottlers of distilled spirits exclusive agent, or sole distributor, or Section 1422 of The Taxpayer Relief and malt beverages have the flexibility other person responsible for the Act of 1997 amended 26 U.S.C 5364 to to list either the place of bottling, every importation, together with the principal allow the importation of wine in bulk to location at which the same industry place of business in the United States of bonded wine premises; the law was member bottles the product, or, under such person. amended the following year by Public certain circumstances, the principal Like the current regulations, the Law 105–206 to restrict this privilege to place of business of the industry proposed regulations in §§ 4.68, 5.68, natural wine. However, even prior to

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this amendment, imported taxpaid wine The existing distilled spirits §§ 4.69, 5.69 and 7.69 simply contain a could be brought onto taxpaid wine regulations in § 5.36(e) provide as cross-reference to the CBP regulations at premises and bottled in the United follows: ‘‘On labels of imported distilled 19 CFR parts 102 and 134 regarding States. Thus, the regulations in part 4 spirits there shall be stated the country country of origin statements, rather than already provide for the labeling of wine of origin in substantially the following independently requiring a country of bottled after importation. However, the form ‘‘Product of ll’’, the blank to be origin statement under TTB regulations. current regulations do not reflect the filled in with the name of the country The proposed regulations also provide fact that wine may be subjected to of origin.’’ TTB’s predecessor agency, that ‘‘[l]abeling statements with regard production activities in the United ATF, was asked to clarify this to the country of origin must be States after importation in bulk. ATF requirement as applied to products that consistent with CBP regulations.’’ Procedure 98–3 provided some consist of blends of spirits produced in Finally, proposed §§ 4.69 and 7.69, as guidance on this issue. more than one country, including well as proposed § 5.69, provide that the Similarly, the current regulations in mixtures of foreign and domestic spirits. determination of the country (or part 5 provide for the labeling of ATF determined that when the country countries) of origin, for imported wines, distilled spirits bottled after of origin regulation in Part 5 was malt beverages, and distilled spirits, importation, but do not provide rules originally written, the agency did not respectively, as well as for blends of concerning the labeling of spirits that contemplate that bottlers would blend imported products with domestically were subject to production activities in imported and domestic spirits. When produced beverages, must comply with the United States after importation. written, the regulations assumed that CBP regulations. Thus, proposed §§ 4.67, 5.67, and 7.67 imported spirits would be bottled using 100 percent imported spirits. While this is a new provision in the provide rules for the labeling of wine, wine and malt beverage regulations, it distilled spirits, and malt beverages that Accordingly, ATF issued ATF Ruling 2001–2 to provide that country of origin will not impose any labeling changes, as are imported in bulk and are then it simply references an existing blended with wine, distilled spirits, or statements under the regulations in part 5 must comply with applicable CBP requirement found in CBP regulations. malt beverages, respectively, of a However, TTB believes that the different country of origin, or subjected requirements. proposed regulation will remind to production activities in the United In ATF Ruling 2001–2, ATF industry members who import alcohol States that would alter the class or type concluded that its country of origin requirements under § 5.36(e) will be beverages in bulk for processing or of the product. The proposed rules interpreted in a manner consistent with bottling in the United States that they provide that such products must be CBP’s rules of origin, noting that must place a country of origin statement labeled with a ‘‘bottled by’’ statement, issuance of separate ATF regulations on the labels where required to do so by rather than an ‘‘imported by’’ statement. might lead to inconsistencies between CBP regulations. ATF Procedure 98–1 would be CBP and ATF rules and result in superseded by the proposed rule, As discussed earlier in this preamble, confusion for the industries affected by because its provisions on the labeling of industry members should note that those rules. Accordingly, the ruling held malt beverages imported in bulk will be pursuant to CBP regulations at 19 CFR that for an imported distilled spirit that incorporated, with modifications, into parts 102 and 134, imported alcohol is wholly the product of a single the name and address regulations found beverages that are further processed in country, the country of origin will be the United States, or that are blended in proposed § 7.67. stated in substantially the following with domestic alcohol beverages in the As further discussed in the next form, ‘‘Product of ll.’’ It further held United States, may nonetheless be section of this preamble, industry that ‘‘substantially the following form’’ subject to a country of origin marking members should note that pursuant to meant that the distilled spirit may, in requirement, even if the class or type of CBP regulations at 19 CFR parts 102 and the alternative, be labeled in conformity the product has been altered in the 134, imported alcohol beverages that are with CBP country of origin marking further processed in the United States, requirements. For a product composed United States. See ATF Ruling 2001–2. or that are blended with domestic of spirits produced in more than one When TTB issues COLAs for distilled alcohol beverages in the United States, country, including mixtures of foreign spirits, wine, or malt beverage may be subject to a country of origin and domestic spirits, ATF held that the containers that do (or do not) include a marking requirement, even when the regulation would be satisfied if the country of origin statement, it is not class or type of the product has been country of origin was determined and making a factual or legal determination altered in the United States. See ATF marked in accordance with CBP of whether such a statement is Ruling 2001–2. regulations. The ruling also noted that necessary, or whether a labeled country g. Country of origin. Current an industry member could seek a ruling of origin would comply with either TTB regulations require a country of origin from Customs for a determination of the or CBP rules. In fact, the application for statement on labels of imported distilled country of origin for its product. label approval typically does not spirits, but include no such requirement TTB is proposing to amend § 5.69, include the information that would be for imported wine or malt beverages. and to add new §§ 4.69 and 7.69, to necessary to make such a determination. Nonetheless, U.S. Customs and Border clarify the relationship between TTB It is the responsibility of the industry Protection (CBP) regulations require a and CBP regulations on this issue. As member to ensure compliance with the country of origin statement to appear on noted, ATF stated in ATF Ruling 2001– country of origin marking requirement, containers of all imported alcohol 2 that issuance of separate ATF both when alcohol beverages are beverages, including alcohol beverages regulations on the country of origin imported in containers and when that are imported in bulk and then issue might lead to inconsistencies imported alcohol beverages are subject subjected to certain production between CBP and ATF rules and result to bottling, blending, or production activities or bottling in the United States in confusion for the industries affected activities in the United States. Industry if, pursuant to CBP regulations, the by those rules. TTB shares the concerns members may seek a ruling from CBP beverage is the product of a country expressed by its predecessor agency on for a determination of the country of other than the United States. this issue. Accordingly, the proposed origin for their product.

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6. Subparts F, G, and H—Statements justice principles, and other similar specific regulations implementing the That Are Restricted, Prohibited, or statements (such as, ‘‘Produced using restriction, but believes it is covered by Prohibited if Misleading 100% solar energy’’ or ‘‘Carbon the general prohibition on misleading The current regulations include a Neutral’’) to appear on labels as long as statements. a. Guarantees. Proposed §§ 4.123, single section titled ‘‘Prohibited the statements are truthful, specific and 5.123 and 7.123 prohibit the use of Practices’’ that sets forth a number of not misleading. Statements or logos guarantees that are likely to mislead the prohibited practices and also describes indicating environmental, sustainable consumer. Money-back guarantees are certain labeling practices that are agricultural, or social justice certification (such as, ‘‘Biodyvin,’’ not prohibited. This is a restatement of regulated in various ways. In order to ‘‘Salmon-Safe,’’ or ‘‘Fair Trade existing policy currently found in make regulatory provisions easier to Certified’’) may appear on labels of §§ 4.39(a)(5), 5.42(a)(5), and 7.39(a)(5), find, and to improve readability, TTB products that are actually certified by with minor modifications for clarity. proposes to divide the regulations the appropriate organization. b. Disparaging statements. Proposed addressing prohibited practices into §§ 4.124, 5.124 and 7.124 specifically three subparts: (1) Subpart F, practices 8. Subpart G—Prohibited Labeling prohibit the use of false or misleading that may be used under certain Practices statements that explicitly or implicitly conditions, (2) subpart G, practices that Subpart G sets forth the prohibited disparage a competitor’s product. This are always prohibited, and (3) subpart labeling practices. The proposed rule proposed revision reflects the H, practices that are prohibited only if provides that the prohibitions set forth longstanding ATF and TTB policy (as they are used in a misleading manner on in this subpart apply to any label, expressed in T.D. ATF–180, 49 FR labels. container, or packaging, and then sets 31667, August 8, 1984) that a Proposed subparts F, G and H each out the definitions of those terms for competitor’s product is disparaged contain language to clarify that the purposes of this subpart. The prohibited when statements or claims about the prohibitions in these subparts apply to practices include false statements and product, or relating to the product, are any label, container, or packaging, and obscene or indecent depictions. The false or would tend to mislead the define those terms as used in these proposed rule restates and reorganizes consumer. This policy does not subparts. Specifically, for purposes of prohibitions currently found in the TTB preclude additional information such as proposed subparts F, G, and H, the term regulations. ‘‘puffery’’ statements made about one’s ‘‘label’’ includes all labels on alcohol own product, nor does it prohibit 9. Subpart H—Labeling Practices That beverage containers on which truthful, nonmisleading comparative Are Prohibited if They Are Misleading mandatory information may appear, as statements or claims that place the set forth in proposed §§ 4.61, 5.61, and Proposed subpart H sets out the competitor’s product in an unfavorable 7.61, as well as any other label on the general prohibition against any light. container. These proposed sections also statement or representation, irrespective In the proposed regulatory text, TTB set out the parts of the container on of falsity, that is misleading to also introduces examples of statements which mandatory information may consumers as to the age, origin, identity, that would be prohibited under this appear. or other characteristics of the wine, provision. A statement of opinion such The proposed text defines distilled spirits, or malt beverages, or as ‘‘We think our [product] tastes better ‘‘packaging’’ for purposes of proposed with regard to any other material factor. than any other [product] on the market’’ subparts F, G, and H, as any carton, It also sets out different ways in which is not prohibited. However, a statement case, carrier, individual covering or statements may be misleading. For such as ‘‘We do not add arsenic to our other packaging of such containers used example, an otherwise truthful [product]’’, although truthful, would be for sale at retail, but does not include statement may be misleading because of considered to be disparaging because it shipping cartons or cases that are not the omission of material information, falsely implies that other producers do intended to accompany the container to the disclosure of which is necessary to add arsenic to their products. the consumer. The proposed rule also prevent the statement from being Furthermore, labels may not include provides that the term ‘‘statement or misleading. This is not a new policy, statements that disparage their representation’’ as used in those but the proposed rule sets it out more competitor’s products by making subparts, includes any statement, clearly (see proposed §§ 4.122, 5.122, specific allegations, such as ‘‘Brand X is design, device, or representation, and and 7.122). not aged in oak barrels,’’ when such includes pictorial or graphic designs or TTB proposes to cancel Rev. Ruling statements are untrue. representations as well as written ones. 55–618, which deals with the use of the c. Tests or analyses. Proposed It also includes both explicit and terms ‘‘kosher’’ and ‘‘altar’’ on wines. §§ 4.125, 5.125 and 7.125 prohibit implicit statements and representations. TTB believes that it should not restrict statements or representations of, or This provision avoids the need to repeat the approval of products labeled as relating to, analyses, standards, or tests, the reference to each type of statement ‘‘altar wine’’ to products to be sold only whether or not truthful, that are likely or representation in every section in to religious organizations, as the ruling to mislead the consumer. These these subparts. required, and proposes to eliminate that proposed provisions incorporate current provision of the ruling. Additionally, policy, but also provide new examples 7. Subpart F—Restricted Labeling the use of the terms ‘‘altar-type’’ or of such a misleading statement, Statements ‘‘altar-style’’ wine are not prohibited designed to illustrate the principle that TTB is proposing a new section (see from appearing on alcohol beverage a truthful statement about a test or proposed §§ 4.85, 5.85, and 7.85) on the products because there is no reasonable standard may nonetheless be use of statements relating to basis for protecting the terms. However, misleading. environmental and sustainability the terms ‘‘kosher style’’ and ‘‘kosher d. Depictions of government symbols. practices, which reflects current TTB type’’ will remain restricted to only Currently, representations relating to the policy. The proposed rule allows kosher wines because the use of such American flag or the U.S. armed forces statements related to environmental or terms on non-kosher wines would be are prohibited from appearing on sustainable agricultural practices, social misleading. TTB does not propose alcohol beverage labels in order to

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prevent misconceptions that the alcohol or is a distilled spirits product. (See also overall label or advertisement does not beverage is endorsed or otherwise 27 CFR 4.39(a)(7), which prohibits create a misleading impression about supervised by the U.S. government or misleading statements on wine that the identity of the product. The the armed forces. However, the create the impression that the wine proposed rule continues to allow the regulations prohibit the use of flags from contains distilled spirits. This use of cocktail names as brand names or other countries only where it would be prohibition does not apply to truthful distinctive or fanciful names, provided misleading. The regulations on U.S. and statements of composition.) While the that the overall label or advertisement foreign flags are based on the same current regulations do not prohibit the does not create a misleading impression statutory provision of the FAA Act at 27 use of wine terms on malt beverage about the identity of the product. U.S.C. 205(e)(5) that prohibits deception labels or the use of wine or malt of the consumer by use of a name or beverage terms on distilled spirits The proposed rule does not prohibit representation of individuals or labels, TTB believes that the use of the use of truthful and accurate organizations when such use creates a terms normally associated with one statements about the production of the misleading impression of endorsement. commodity may be misleading if used product, as part of a statement of Consistent with the statutory on a product of a different commodity. composition or otherwise, such as ‘‘aged prohibition on which these regulations For example, if a term that is a class in whisky barrels’’ for a malt beverage are based, it is TTB’s current policy to or type designation for wine is used on or wine, so long as such statements do enforce this regulatory prohibition only a malt beverage label as the brand name not create a misleading impression as to where such representations might tend or as a distinctive or fanciful name, or the identity of the product. Consistent to mislead consumers. Thus, TTB is is placed on the label in an otherwise with TTB Ruling 2014–4, while proposing to amend the regulations to prominent position, the label may create statements about aging malt beverages remove the blanket prohibition against the misleading impression that the malt in barrels previously used in the the use of representations of, or relating beverage is produced with the addition production or storage of distilled spirits to, the American flag, the armed forces of wine. As a result, TTB has denied or wine are not prohibited, statements of the United States, or other symbols approval of labels bearing such terms that imply that the product contains associated with the American flag or when it has determined that the labels distilled spirits (such as ‘‘bourbon armed forces. Instead, proposed were misleading. This denial is flavored beer’’) are prohibited as §§ 4.126, 5.126, and 7.126 retain the authorized under TTB’s general misleading. prohibition against the use of such authority to prohibit misleading Finally, TTB proposes to continue to symbols or images where they create the information on labels, which is codified allow the use of terms that compare a impression that there was some sort of at current §§ 4.39(a), 5.42(a), and product or products of one commodity endorsement by, or affiliation with, the 7.29(a). However, in other cases, TTB governmental entity represented. has determined that references to other to a product or products of a different Furthermore, each of these proposed commodities on labels do not mislead commodity (such as, ‘‘This wine doesn’t sections specifically provides that the consumers as to the identity of the have the hoppy taste of beer’’) without section does not prohibit the use of a product. The determination of whether creating a misleading impression as to flag as part of a claim of American the reference is misleading depends on the identity of the product. origin or another country of origin. the overall label, and how the TTB solicits comments on whether e. Depictions simulating government information is presented. the proposed prohibition and the stamps or relating to supervision. TTB believes that, in order to deal proposed exceptions to the prohibition Proposed §§ 4.127, 5.127, and 7.127 with this issue consistently, the will adequately protect the consumer retain prohibitions against depictions regulations should set forth specific and whether the proposed regulations simulating government stamps or rules about the use of defined terms for will require changes to existing labels. relating to government supervision but one commodity on labels of another TTB particularly solicits comments on provide that these representations are commodity. Accordingly, TTB is whether the use of coined terms and only prohibited if misleading. TTB proposing to amend the regulations to homophones in brand names and solicits comments on whether there is specifically provide that no label, elsewhere on the labels is misleading to still a need for regulations on this issue. container, or packaging may contain a consumers when those terms imply f. Cross-category terms on labels of statement, design, or device that tends similarity to class and type designations wine, distilled spirits, and malt to create the false or misleading to which a product is not entitled. beverages. In proposed §§ 4.128, 5.128, impression that the product is, or and 7.128, TTB proposes to adopt a new contains, a different commodity. g. Appearance of endorsement. The prohibition on the misleading use of Furthermore, the proposed regulations current regulations prohibit the use of cross-commodity terms. Terms used to prohibit class or type designations (or the name of a living person or existing designate the class and type of wine, any homophones or coined words that private or public organization if the use distilled spirits, and malt beverages are simulate or imitate a class or type of that name or a representation unique to each commodity. More and designation) that are set forth in the TTB misleads the consumer to believe that more frequently, TTB receives regulations for one commodity from the product has been endorsed, made, or applications for approval of a label for appearing on a label for a product of a used by, or produced for, or under the one commodity where the label bears a different commodity, if such supervision of, or in accordance with term normally associated with a representation creates a misleading the specifications of, such individual or different commodity. impression about the identity of the organization. TTB proposes, in §§ 4.130, For malt beverage products, the product. 5.130, and 7.130, to maintain that rule, current TTB regulations at § 7.29(a)(7) Consistent with past practice, the but to make more clear that actual prohibit a label from containing any proposed regulation does not prohibit a endorsements are permitted and that statement, design, device, or truthful and accurate statement of TTB may request documentation representation that tends to create a alcohol content. Similarly, it does not supporting the claim of endorsement at false or misleading impression that the prohibit the use of a brand name of a the time the application for label malt beverage contains distilled spirits different commodity, provided that the approval is submitted or at a later time.

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10. Subpart I—Classifications policy has not yet been codified in the packaging that appeared similar to regulations. packaging for non-alcohol products. The Subpart I in parts 4, 5, and 7 sets forth In Notice No. 872, published in the comments in favor of the proposed rules for the classification of wine, Federal Register (64 FR 6485) on regulations came from consumers, distilled spirits, and malt beverages, February 9, 1999, ATF proposed to parents, substance abuse agencies and respectively. As noted earlier in this codify standards on this issue. consumer advocacy organizations, and document, wine, distilled spirits, and According to the preamble of this were mostly general statements of malt beverages are organized into NPRM, the issue of whether standard of support for the proposed regulations general classes and, within the classes, fill requirements may be satisfied by that did not specify which aspect of the more specific types. These classes and aggregate packaging was first raised in NPRM (aggregate packaging or types, in the case of wine and distilled 1988, when an importer sought packaging types) they supported. spirits, have specific standards listed in permission to import bags containing 25 The regulations proposed in Notice the regulations; these are known as individual 15-mL packages of alcohol No. 872 to prohibit aggregate packaging ‘‘standards of identity.’’ For malt beverage for a total of 375 mL, an to meet the authorized standards of fill beverages, the class and type authorized standard of fill. The request were not finalized, and the practice of designations are based on designations was approved, as were subsequent aggregate packaging continues today. of products as known to the trade. The requests for other types of containers, ATF encouraged the industry to adopt a specific classification rules and the such as distilled spirits products number of safeguards to protect against changes TTB proposes to make to these packaged in packs of thirty 25-mL test consumer deception in the event that rules will be discussed below in the tubes to meet an authorized standard of aggregate packages were broken apart part-specific sections of this document. fill of 750 mL. and the single-serving packages sold In the NPRM, ATF stated that it was 11. Subpart K for Parts 4 and 5, individually. These safeguards included concerned that the wide array of Standards of Fill labeling the individual containers as container types and packaging coming ‘‘not for individual sale’’ and ‘‘not for In subpart K of parts 4 and 5, TTB onto the market—including, but not children,’’ sealing the outer container maintains the current requirements for limited to, aggregate packaging—would with shrink wrap or other secure specified standards of fill (see §§ 4.202 have a number of adverse impacts methods, and encouraging bottlers to and 5.202). (TTB plans to propose including: (1) Confusing consumers as bottle the individual units of the changes to the standards of fill in a to the quantity and nature of the alcohol package in authorized standards of fill separate rulemaking document.) beverage; (2) contributing to (for example, in 50-mL units). TTB Additionally, TTB proposes to codify its administrative difficulty in determining continues to allow aggregate packaging existing policies regarding aggregate appropriate excise tax for the products; under the following conditions: packaging. (3) making aggregate fill products more • The applicant submits to TTB, easily obtainable by underage a. TTB’s Current Regulations on along with the application for label individuals; and (4) creating problems Standards of Fill. TTB administers approval, a sample of the actual external with State and local alcohol beverage regulations setting forth container size container and a sample of one of the controls, either by conflicting with State and related standards of fill for smaller internal containers. standard of fill provisions or with • The external container, as well as containers of distilled spirits and wine prohibitions against open containers of each of the smaller internal containers, distributed within the United States. alcohol beverages. Accordingly, the is labeled with all of the mandatory (There are no standard of fill NPRM proposed regulations prohibiting information required by parts 4 and 24 requirements for malt beverages.) The the use of aggregate packaging to meet for wine and parts 5 and 19 for distilled standards of fill appear in the current standard of fill requirements. spirits, as well as the health warning regulations in § 4.72 for wine, and ATF received approximately 100 statement required by part 16. §§ 5.47 and 5.47a for distilled spirits. comments on the NPRM, with 40 • The external container is shrink- Containers conforming to a standard of percent of the comments against the wrapped, boxed, or sealed in such a fill of, for example, 750 mL—which is proposed regulations and 60 percent manner that the smaller internal a standard of fill prescribed by current favoring them. Comments against the containers cannot be easily removed. regulations for both wine and distilled proposed regulations came from the • Each of the smaller internal spirits—must have a net contents of 750 alcohol beverage industry and related containers is labeled ‘‘NOT FOR mL of that product. industries, such as packaging INDIVIDUAL SALE.’’ b. Aggregate Packaging to Meet a manufacturers; although one alcohol • The external container bears a Standard of Fill. In 1988, TTB’s beverage producer supported the statement of total net contents that predecessor agency started permitting proposed regulations. Comments from clearly shows how the contents of the bottlers and importers of wine and industry regarding aggregate packaging individual packages added together are distilled spirits products to use mainly contended that the issue could equivalent to one of the authorized containers that did not meet a standard be addressed with labeling requirements standards of fill. (For example, 750 mL of fill provided that the non-standard of and that limiting package sizes was an = 30 containers of 25 mL each.) fill containers were banded or wrapped unnecessary overreach by ATF. In recent years, TTB’s policy together and sold as a single wine or Comments on the aggregate packaging regarding aggregate packaging has distilled spirits product that, in total, aspect of the proposed regulations came shifted to allow for non-standard of fill met an approved standard of fill. For mostly from companies that were containers to be packaged together even example, a wine or distilled spirits already using aggregate packaging to when those containers do not hold the product sold in a package of thirty 25 meet standard of fill requirements. same product. For example, products of mL containers to meet an authorized However, most of the comments against differing standards of identity and standard of fill of 750 mL would be an the proposed regulations were not differing alcohol contents have been aggregate package under this policy. addressed to aggregate packaging, but to permitted to be packaged together as While this type of aggregate packaging another aspect of the NPRM, which one product. TTB has reevaluated this has been permitted for some time, TTB’s proposed regulations relating to shift in policy and has determined that

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it is inconsistent with the original intent has implemented the electronic filing of National Confectioners Ass’n v. of the aggregate packaging policy, which applications for label approval. Now, Califano, 569 F.2d 690, 693–94 (D.C. was to allow one product to be bottled over 90 percent of new applications for Cir. 1978), which upheld the FDA’s in non-standard of fill containers that label approval are submitted authority to require records in the would be banded together so that the electronically, and the rest are absence of a specific statutory sum of the identical parts would equal processed electronically by TTB. requirement where records were a standard of fill for that product. Industry members have asked for necessary to help in the efficient c. Proposed Regulatory Amendment. clarification as to whether they have to enforcement of the Federal Food, Drug The regulations proposed in this retain paper copies of certificates that and Cosmetic Act. rulemaking document provide for were processed electronically. Finally, Similarly, the FAA Act provides TTB aggregate packaging subject to the because industry members may make with comprehensive authority over the conditions set forth above and with the certain specified revisions to approved labeling of wine, distilled spirits, and additional requirements that the wine or labels without obtaining a new COLA, it malt beverages, and the COLA distilled spirits packaged in the is important that the industry members provisions of the FAA Act are individual non-standard of fill keep track of which label approval they specifically designed to ‘‘prevent the containers within an aggregate package are using when they make such sale or shipment or other introduction must all be of the same class and type, revisions. of distilled spirits, wine, or malt alcohol content, and tax class. This is a Accordingly, proposed §§ 4.211, beverages in interstate or foreign narrowing of the current policy that 5.211, and 7.211 are new to the commerce, if bottled, packaged, or allows for wines and distilled spirits of regulations and provide that, upon labeled in violation of [27 U.S.C. differing classes, types, and alcohol request by the appropriate TTB officer, 205(e)].’’ See 27 U.S.C. 205(e). The law contents to be packaged together. TTB bottlers and importers must provide specifically requires a certificate holder believes that this narrowing of the evidence of label approval for a label to have the COLA in its possession at policy is necessary to maintain the that is used on an alcohol beverage the time of bottling or removal of original intent of standards of fill container and that is subject to the containers from customs custody. requirements, reduce consumer COLA requirements of the applicable Requiring the holder to be able to show confusion when comparing products, part. evidence of label approval after removal and reduce administrative burden when This requirement may be satisfied by is simply a clarification of TTB’s current calculating the tax liability of an providing original certificates, requirements. We note that in addition aggregately packaged wine or distilled photocopies or electronic copies of to the rulemaking authority provided by spirits product. The proposed COLAs, or records showing the TTB 27 U.S.C. 205, TTB has authority under provisions related to aggregate identification number assigned to the section 2(d) of the FAA Act, Public Law packaging appear in §§ 4.204 and 5.204. approved COLA. Where labels on 74–401 (1935) ‘‘to prescribe such rules If each internal container already containers reflect revisions to the and regulations as may be necessary to complies with an authorized standard of approved label that have been made in carry out [its] powers and duties’’ under fill, then the aggregate standard of fill compliance with allowable revisions the FAA Act. conditions would not apply, and the authorized to be made on the COLA Proposed §§ 4.212, 5.212, and 7.212 internal containers would each be form or otherwise authorized by TTB, set forth specific substantiation subject to label approval. The outer the bottler or importer must be able to requirements, which are new to the packaging would then be subject to the identify the COLA covering the product, regulations, but which reflect TTB’s packaging regulations proposed at upon request by the appropriate TTB current expectations as to the level of §§ 4.62 and 5.62. TTB believes it is officer. Bottlers and importers must be evidence that industry members should appropriate to codify the rules related to able to provide this information for a have to support labeling claims. The aggregate packaging, which apply to period of five years from the date the proposed regulations provide that all labeling and standards of fill, as part of products covered by the COLAs were claims, whether implicit or explicit, this modernization project. removed from the bottler’s premises or must have a reasonable basis in fact. from customs custody, as applicable. Claims that contain express or implied 12. Subpart L—Recordkeeping and TTB believes that five years is a statements regarding the amount of Substantiation Requirements reasonable period of time for record support for the claim (e.g., ‘‘tests Subpart L of parts 4, 5, and 7 sets retention because there is a five-year provide,’’ or ‘‘studies show’’) must have forth rules for recordkeeping and statute of limitations for criminal the level of substantiation that is substantiation requirements for alcohol violations of the FAA Act. TTB notes claimed. beverages. Existing regulations (27 CFR that the proposed rule does not require Furthermore, the proposed 4.51, 5.55, and 7.42) require bottlers industry members to retain paper copies regulations provide for the first time holding an original or duplicate original of each certificate; they should simply that any labeling claim that does not of a certificate of label approval (COLA) be able to track a particular removal to have a reasonable basis in fact, or or a certificate of exemption to exhibit a particular certificate, and they may cannot be adequately substantiated such certificates, upon demand, to a rely on electronic copies of certificates, upon the request of the appropriate TTB duly authorized representative of the including copies contained in the TTB officer, will be considered misleading. United States Government. Current Public COLA Registry. The regulations in subpart H are regulations (27 CFR 4.40, 5.51, and 7.31) While the FAA Act does not contain similarly amended to include the same also require importers to provide a copy any specific recordkeeping requirements requirement. TTB believes that this of the applicable COLA upon the in this regard, the labeling regulations provision, which is very similar to the request of the appropriate TTB officer or have for decades required industry Federal Trade Commission’s policy on a customs officer. However, these members to produce COLAs upon substantiation of advertising claims, regulations do not state how long demand. Furthermore, such records are will clarify that industry members are industry members should retain their necessary to enforce the requirements of responsible for ensuring that all labeling COLA. Furthermore, since these the FAA Act with regard to COLAs and and advertising claims have adequate regulations were originally drafted, TTB certificates of exemption. See, e.g., substantiation. See ‘‘FTC Policy

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Statement Regarding Advertising C. Proposed Changes Specific to 27 CFR completed, the United States deposited Substantiation’’ (Appended to Part 4 (Wine) its instrument of acceptance on October Thompson Medical Co., 104 F.T.C. 648, In addition to the changes discussed 1, 2013, and became a Party to the 839 (1984), aff’d, 791 F.2d 189 (D.C. Cir. in section II B of this document that Agreement on November 1, 2013. Under the Agreement, the Parties 1986), cert. denied, 479 U.S. 1086 apply to more than one commodity, agreed to continue to discuss labeling (1987)). TTB is proposing additional editorial requirements concerning tolerances in and substantive changes specific to the 13. Subpart M––Penalties and alcohol content statements, vintage wine labeling regulations in part 4. This Compromise of Liability wine, grape variety designations, and section will not repeat the changes In proposed subpart M for parts 4, 5, wine regions, with a view to concluding already discussed in section II B of this an additional agreement on labeling. and 7, TTB proposes simply to include document. Accordingly, if a proposed references to various provisions of the This additional agreement––the change is not discussed in this section, Labeling Protocol––was signed on FAA Act. Proposed §§ 4.221, 5.221 and please consult section II B. The 7.221 state that a violation of the March 22, 2013, by several Governments substantive changes that are unique to other than the United States, and labeling provisions of 27 U.S.C. 205(e) part 4 are described below. is punishable as a misdemeanor and entered into force on November 1, 2013. refer readers to 27 U.S.C. 207 for the 1. WWTG Labeling Protocol A full copy of the Labeling Protocol can be found at http://ita.doc.gov/td/ocg/ statutory provisions relating to criminal As described below, TTB is proposing protocol.pdf. Because some of the penalties, consent decrees, and to make several liberalizing changes to existing labeling regulations in parts 4, injunctions. Proposed §§ 4.222, 5.222, the wine labeling regulations in part 4 5 and 7 are inconsistent with the terms and 7.222 provide that basic permits are to conform to international of the Labeling Protocol, TTB must conditioned upon compliance with the commitments. TTB believes that these engage in rulemaking on some of the provisions of 27 U.S.C. 205, including changes will increase flexibility in issues addressed in the Protocol. We the labeling provisions of parts 4, 5 and labeling for bottlers and importers of intend to address those issues in this 7, and that a willful violation of the wine, while providing consumers with proposed rule. conditions of a basic permit provides more information about the wine that The Labeling Protocol reflects labeling grounds for the revocation or they are purchasing. requirements concerning tolerances in suspension of the permit, as applicable, The World Wine Trade Group alcohol content statements, vintage as set forth in 27 CFR part 1. (WWTG), which was founded in 1998, wine, grape variety designations, and Proposed §§ 4.223, 5.223, and 7.223 is an informal grouping of government wine regions that are consistent with set forth TTB’s authority to compromise and industry representatives from U.S. efforts to remove trade barriers. The liability for a violation of 27 U.S.C. 205 Argentina, Australia, Canada, Chile, the Labeling Protocol will allow U.S. wine upon payment of a sum not in excess of Republic of Georgia, New Zealand, producers to export more easily to $500 for each offense. This payment is South Africa, and the United States. The parties to the Agreement that have more to be collected by the appropriate TTB group shares information and restrictive labeling standards than the officer and deposited into the Treasury collaborates on a variety of international as miscellaneous receipts. United States. issues to create new opportunities for The proposed changes relating to the By placing these provisions in the wine trade. Labeling Protocol, as well as the other regulations, TTB will make it easier for The WWTG Agreement on substantive changes that are unique to a person to locate the penalties for Requirements for Wine Labeling part 4 are described below, by subpart. violating the FAA Act and the (‘‘Agreement’’) was initialed on regulations implementing the FAA Act. September 20, 2006, and was signed in 2. Subpart A—General Provisions These proposed regulations will not Canberra, Australia, on January 23, Proposed subpart A includes several change the criminal penalty and 2007, by the United States and other sections that have general applicability compromise provisions, which are set governments. This is an executive to part 4, including a revised definitions forth in the statute. agreement and not a treaty. A full copy section, a section that defines the of the agreement can be viewed at 14. Subpart N—Paperwork Reduction territorial extent of the regulations, http://ita.doc.gov/td/ocg/ Act sections that set forth to whom and to WWTGlabel.pdf. Negotiations of the which products the regulations in part The Office of Management and Budget Agreement proceeded from the view 4 apply, a section that identifies other (OMB) assigns control numbers to TTB’s that common labeling requirements regulations that relate to part 4, and information collection requirements. In would facilitate trade by providing sections that address administrative current parts 4, 5, and 7, the OMB industry members with the opportunity items such as forms and delegations of control numbers, in some instances, are to use the same label when shipping the Administrator. listed at the end of the sections that wine to each of the WWTG member a. Definitions. Proposed § 4.1, which impose the respective information countries. covers definitions of terms used in part collection requirements. TTB believes To conform to Article 6 of the 4, is consistent with the current that industry members will have an Agreement, which requires the parties regulatory text that appears in § 4.10, easier time locating OMB control to the Agreement to allow information with some amendments in addition to numbers for information collection regarding alcohol content and certain those discussed in section II B of this requirements if they are listed in one other common mandatory information preamble. location. Therefore, proposed subpart N to be placed anywhere on a label in a TTB is proposing to add definitions of for parts 4, 5, and 7 contains a listing ‘‘single field of vision,’’ TTB engaged in the following terms: ‘‘brix,’’ ‘‘county,’’ of those sections of proposed part 4, 5, rulemaking to eliminate the requirement ‘‘fully finished,’’ and ‘‘grape wine.’’ or 7, as the case may be, that impose an in the TTB regulations that alcohol These terms are used throughout part 4. information collection requirement content be stated on the brand label. See The proposed rule defines the term along with the assigned OMB control T.D. TTB 114 (78 FR 34565, June 10, ‘‘brix’’ as ‘‘[t]he quantity of dissolved number. 2013). After the rulemaking was solids expressed as grams of sucrose in

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100 grams of solution at 68 degrees allow industry members to use the term more than 24 percent alcohol by Fahrenheit. (20 degrees Celsius) ‘‘bottled’’ rather than ‘‘packed’’ on volume. Proposed § 4.6(a) clarifies that (Percent by weight of sugar).’’ This labels of wine in containers larger than part 4 does not cover products that definition is derived from and is 4 liters. For example, the industry would otherwise meet the definition of consistent with 27 CFR 24.10, with the member may use ‘‘bottled by ABC wine except that they contain less than exception of changing a typographical winery, Sutton, Massachusetts’’ rather 7 percent alcohol by volume. The error currently found in section 24.10 of than ‘‘packed by ABC winery, Sutton, proposed rule states that bottlers and ‘‘60 degrees’’ to the correct temperature Massachusetts’’ as the mandatory importers of alcohol beverages that do of ‘‘68 degrees.’’ TTB intends to correct address statement for a five-liter not fall within the definition of malt the definition in § 24.10 in a separate container. TTB is also proposing to beverages, wine, or distilled spirits rulemaking document. replace the word ‘‘person’’ with the under the FAA Act should refer to the The current and proposed regulatory phrase ‘‘[a]ny producer or blender or applicable labeling regulations for foods texts use the term ‘‘county’’ when wine, proprietor of bonded wine issued by the FDA. Proposed § 4.6(b) providing for authorized appellations of premises, or proprietor of a taxpaid clarifies that products that would origin. TTB has been asked by many wine bottling house’’ to better define otherwise meet the definition of wine industry members if the term ‘‘county’’ those who are eligible to bottle wine. except that they contain more than 24 includes other political subdivisions The proposed rule amends the term percent alcohol by volume are classified that are equivalent to a county, such as ‘‘bottler’’ to read as ‘‘[a]ny producer or as distilled spirits and must be labeled a ‘‘parish’’ in Louisiana. The proposed blender of wine, proprietor of bonded in accordance with 27 CFR part 5. rule defines the term ‘‘county’’ to wine premises or proprietor of a taxpaid Proposed § 4.6 also includes a cross include a county or a political wine bottling house, who places wine in reference to § 4.7, which refers to subdivision recognized by the State as a containers.’’ labeling requirements under the ABLA county equivalent. This proposed The proposed rule amends the and the IRC. definition will allow the use of names definition of the term ‘‘pure condensed 3. Subpart E—Mandatory Label of county equivalents as appellations of must’’ by removing the word ‘‘balling’’ Information origin. and replacing it with the word ‘‘brix’’ The current and proposed regulatory because the word ‘‘brix’’ is more a. Brand labels. Currently, the TTB texts use the term ‘‘fully finished’’ when commonly used by the industry. The regulations at § 4.32 require that certain setting forth requirements for labeling terms ‘‘balling’’ and ‘‘brix’’ are information appear on the brand label of wine with an appellation of origin. For synonymous. a wine container, while other example, one of the conditions in The proposed rule amends the mandatory information, and any current § 4.25(b)(1)(ii) is that ‘‘the wine definition of the term ‘‘total solids’’ by additional information, may appear on has been fully finished (except for cellar adding the words ‘‘with water’’ at the any label. The brand label is defined in treatment pursuant to § 4.22(c), and end of this definition to clarify that § 4.10 as ‘‘[t]he label carrying, in the blending that does not result in an restoring wine to its original volume usual distinctive design, the brand name alteration of class or type under must be done with water. of the wine’’ and, under current § 4.32, § 4.22(b)) in one of the labeled The proposed rule amends the the brand name, class or type appellation States.’’ The parenthetical definition of ‘‘wine’’ under the FAA Act designation, and statement of the statement after ‘‘fully finished’’ appears by making clarifying changes, consistent percentage of foreign wine in a blend of all three times that term is used in part with the definition of ‘‘wine’’ in 27 CFR American and foreign wines (where a 4. Accordingly, TTB is defining the term part 1. This is a technical change and reference is made to the presence of ‘‘fully finished’’ as ‘‘Ready to be bottled, does not alter the current meaning of foreign wine on the label), must appear except that it may be further subject to ‘‘wine’’ in part 4. on the brand label. Other mandatory the practices authorized in § 4.154(c) b. Prohibitions and jurisdictional information may appear on any label. and to blending that does not result in limits. Proposed § 4.3 sets forth the In practice, however, a brand label an alteration of class or type under general requirements and prohibitions may wrap nearly or entirely around a § 4.154(b).’’ under 27 U.S.C. 205(e). This repeats the bottle or other wine container. As a The proposed regulatory text uses the essential elements of the prohibitions result, mandatory information may term ‘‘grape wine’’ to include still grape found in current § 4.30, and clarifies appear anywhere on certain bottles and wine, sparkling grape wine, and that the regulations that prohibit the containers. Furthermore, if the label carbonated grape wine. The proposed alteration of labels apply to persons bearing the brand name is on the back definition reflects the name change of holding wine for sale. of the container, then it is the brand current class one grape wine to still c. Products that are not ‘‘wine’’ under label. grape wine, but allows for use of an the FAA Act. Proposed §§ 4.5 and 4.6 TTB believes that the current umbrella term when referring to still are new provisions that indicate which regulations requiring that certain grape wine, sparkling grape wine, and wines are covered by part 4 and which mandatory information be placed on the carbonated grape wine. wine products are not covered by part brand label of wine containers are The proposed rule also amends the 4. TTB receives many inquiries on this unduly restrictive. TTB believes that current definitions of the following issue, and TTB believes that including consumers are used to looking at the terms: ‘‘bottler,’’ ‘‘pure condensed this information in the regulatory text back and neck labels to find mandatory must,’’ ‘‘total solids,’’ and ‘‘wine.’’ will be helpful to its readers. information on containers. The current definition of the term Certain winery products that may be Accordingly, TTB is proposing to ‘‘bottler’’ reads as ‘‘[a]ny person who taxed as wine under the IRC do not fall amend the regulations in proposed places wine in containers of four liters within the definition of ‘‘wine’’ under § 4.63 to allow mandatory information or less.’’ TTB is proposing to remove the the FAA Act, as found in 27 U.S.C. to appear on any label on a wine size restriction associated with the 211(a)(6), because of the differences container. current definition to denote that a between the two statutes. Thus, b. Brand names. Proposed § 4.64 person filling containers of any size is proposed § 4.5 clarifies that wine under consolidates certain existing regulations considered a ‘‘bottler.’’ This change will part 4 contains at least 7 percent and not with regard to brand names and puts

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them in one section of the regulations. class or type designation reflects a it is subject to the rules in §§ 4.39(i) and Current § 4.32 requires that a brand minimum or maximum alcohol content 4.39(b), which pertain to names having name be placed on labels of wine. What requirement consistent with geographical significance. may be used as a brand name is requirements set forth in a tax class. Consistent with current policy, TTB is specified in § 4.33. The current § 4.39(i) An example of a class or type proposing to liberalize the current pertains to geographical brand names. designation that reflects an alcohol regulations on the use of vineyard, The proposed rule moves these content requirement consistent with a orchard, farm, or ranch names to allow provisions to proposed § 4.64(c) without requirement set forth in a tax the use of those names as part of trade substantive changes. classification is ‘‘table wine.’’ The class names that are found on labels. It has TTB believes that placing the and type designation ‘‘table wine’’ for a been TTB’s policy to allow the use of provisions pertaining to geographical still grape wine is a designation that trade names in name and address brand names with the other provisions reflects a maximum alcohol content of statements, such as ‘‘Bottled by John pertaining to brand names will enable 14 percent alcohol by volume, which is Doe Vineyards, Seattle, Washington,’’ industry members to find and consistent with the maximum alcohol where the wine has not been made from understand the regulations pertaining to content for a tax classification for still grapes grown in the referenced vineyard brand names more easily. wine under 26 U.S.C. 5041. Under (or even where there is no vineyard with c. Alcohol content and the WWTG current and proposed regulations, grape that name). Furthermore, when such a Labeling Protocol. Under TTB’s current wine that is labeled as ‘‘table wine’’ trade name appears on the label as part regulations in § 4.36, the required need not bear a numerical alcohol of the bottling address, it may also be alcohol content statement for wine may content statement. Thus, the designation used as a brand name on the label, be expressed as a percentage of alcohol ‘‘table wine’’ on a label serves two without meeting the 95 percent by volume, or as a range, subject to purposes—it reflects the class and type requirement. TTB believes that certain requirements. However, the designation of the wine, and it reflects consumers do not see the use of a percentage of alcohol by volume is not the alcohol content for tax classification vineyard, orchard, farm or ranch name required to be specifically listed on the purposes. Accordingly, under the as part of a trade name as making a label if the type designation ‘‘table’’ or proposed rule, a still grape wine that claim as to the source of the grapes, ‘‘light’’ wine appears on the label. contains 14.2 percent alcohol by volume fruit, or other agricultural products used Subject to certain restrictions, a would not receive the benefit of the to make the wine. tolerance of one percentage point is tolerance to the extent that the wine Accordingly, the revision to these allowed for alcohol content statements may not be labeled either as a ‘‘table provisions in proposed § 4.87 clarifies of wines containing more than 14 wine’’ or with an alcohol content of 14 that the 95 percent rule does not apply percent alcohol by volume, and a percent or less, regardless of the to trade names or brand names when the tolerance of 1.5 percentage points is tolerance prescribed in this section. vineyard, orchard, farm, or ranch name allowed for wines containing 14 percent is shown in the mandatory name and or less alcohol by volume. One of the 4. Subpart F—Restricted Labeling address statement on the label. TTB is current exceptions to the tolerance Statements retaining the provision that, when used provision states that the alcohol content Proposed Subpart F––Restricted in a brand name, a vineyard, orchard, statement on a wine label must correctly Labeling Statements, includes specific farm, or ranch name having indicate both the taxable grade of the rules for the use of certain statements on geographical or viticultural significance wine and the class and type of the wine labels, including statements regarding is subject to the requirements of if alcohol content is part of the allergens, the term ‘‘organic,’’ and other proposed § 4.64(b) and (c). definition of the class and type. specific statements. The following c. Appellations of origin. Proposed Pursuant to Article 4.1(b) of the discussion sets out some of the more §§ 4.88 through 4.91 set out the rules for WWTG Labeling Protocol, the United important provisions in proposed appellations of origin for grape wines. States has agreed to accept alcohol subpart F that relate specifically to Proposed §§ 4.96 through 4.98 set out content tolerances of up to one wine. the rules for appellations of origin for percentage point, provided that the a. Permit numbers. Current fruit wines, agricultural wine, and rice alcohol content statement must § 4.39(e)(2) sets forth specific format wine. As discussed in more detail correctly indicate the tax category, rules for stating optional bonded wine below, TTB is proposing to separate out regardless of tolerance levels. This is cellar and bonded winery numbers (for these rules to make it easier to locate all consistent with current regulations, example, ‘‘Bonded Wine Cellar of the rules applicable to grape wine except that it allows the use of a No. ll’’ or ‘‘B.W. No. ll’’). TTB and fruit wine, respectively. tolerance in cases that cross over believes these format rules are Current § 4.25 sets forth rules minimum and maximum alcohol unnecessarily restrictive and proposes governing the minimum percentage of content levels for labeling designations, to delete them. However, proposed fruit or other agricultural products that as long as this would not affect the tax § 4.86 retains the requirement that the must be grown within a specific category. permit number appear adjacent to the geographic area in order to qualify for Accordingly, proposed § 4.65 name and address of the person the use of an appellation of origin on a maintains the current tolerance levels operating the wine cellar or winery. wine label. It also imposes other for alcohol content statements in wine, b. Use of vineyard, orchard, farm or standards for use of an appellation of and maintains the current exception to ranch names. Current § 4.39(m) origin; for example, the wine must the tolerance levels for alcohol content provides that the use of vineyard, generally conform to the standards of statements related to maximum and orchard, farm, or ranch names can only the named appellation governing the minimum alcohol contents for tax be used if 95 percent of the wine is composition, method of manufacture, classifications under 26 U.S.C. 5041. produced from primary winemaking and designation of wines made in such The proposed rule allows the tolerance material grown on the named vineyard, place. levels to apply to alcohol content orchard, farm, or ranch. This section TTB is proposing to include the statements that might affect the correct further provides that if the name has appellation of origin requirements in class and type designation, w unless the geographical or viticultural significance, several sections and incorporate other

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changes as discussed below. In addition agricultural products were grown in the similar political subdivision), or 85 to stating what constitutes the use of an states, provinces, territories, or similar percent (in the case of an appellation appellation of origin, proposed § 4.88(d) political subdivisions of a country that is a viticultural area), without any clarifies that an appellation of origin is equivalent to a state indicated, and the requirements for identifying the required when a grape wine is percentage of the wine derived from percentage of grapes coming from designated with a varietal (grape type) fruit or other agricultural products outside of the named appellation. designation, a type designation of grown in each state, province, territory, TTB also notes that the proposed varietal significance, or a semi-generic or similar political subdivision of a requirements with regard to listing type designation, or when the wine is country equivalent to a state is shown States and counties in descending order labeled with a vintage date. These on the label with a tolerance of plus or of predominance are largely consistent requirements are currently found in the minus 2 percent. Furthermore, the wine with the policy set forth in ATF Ruling class and type regulations in § 4.34. must conform to the requirements of the 91–1, and supersedes that ruling. Current § 4.25(d) provides that an foreign laws and regulations governing Finally, the proposed requirement will appellation of origin comprising two or the composition, method of production, not require the listing of each State or no more than three States which are all and designation of wines available for county (or foreign equivalent) on the contiguous may be used if: (1) All of the consumption within the country of label; however, labels may not, for fruit or other agricultural products were origin. example, selectively include States that grown in the States indicated, and the In accordance with the WWTG contributed only a small percentage of percentage of the wine derived from Labeling Protocol, discussed earlier in grapes while leaving out States that fruit or other agricultural products this preamble, the proposed rules contributed a larger percentage of grown in each State is shown on the pertaining to multicounty and grapes. For example, in a case where label, with a tolerance of plus or minus multistate appellations of origin for both grapes used to make a wine were grown 2 percent; (2) the wine has been fully domestic and imported wine in in 4 States, with the first 2 States finished (except for cellar treatment proposed § 4.90 would: (1) Remove the contributing 45 and 40 percent, pursuant to § 4.22(c), and blending requirement that States (or political respectively, the third State contributing which does not result in an alteration of subdivisions for imported wine) be 12 percent and the fourth State class or type under § 4.22(b)) in one of contiguous in order to claim that the contributing 3 percent, the proposed the labeled appellation States; and (3) wine is produced from grapes grown in rule requires the listing of the first 2 the wine conforms to the laws and more than one State; (2) reduce the States, in order of predominance, regulations governing the composition, minimum percentage of grapes from 100 leaving it up to the industry member method of manufacture, and designation percent to 85 percent for wine to be whether it wanted to include a third of wines in all the States listed in the labeled with such an appellation; (3) State. However, the third State listed on appellation. remove the requirement that the the label would have to be the State In ATF Ruling 91–1, TTB’s percentage of the wine derived from contributing 12 percent, and not the predecessor agency held that a grapes grown in each State (or political State contributing 3 percent, even multistate appellation of origin cannot subdivisions for imported wine) must be though in either case, the States listed be used if conflicting State requirements shown on the label; (4) add the would contribute more than 85 percent preclude conformance with the laws requirement that the amount of wine of the grapes used to make the wine. and regulations of all the States listed in derived from grapes grown in each State The industry member could, of course, the appellation of origin. ATF also held (or political subdivision for imported choose to list all 4 States on the label. that, where a multistate appellation of wine) named in the appellation must be Under the proposed rule, a multistate origin appears on the brand label and greater than the amount of wine derived appellation of origin for American wine the percentage of the wine derived from from grapes grown in any State not would continue to be unavailable unless grapes grown in each State is listed on named in the appellation; and (5) add the wine is fully finished in one of the a label other than the brand label, the the requirement that States (or political labeled appellation States, and the wine States in the multistate appellation of subdivisions for imported wine) be conforms to the laws and regulations origin must be listed in a descending listed in descending order according to governing the composition, method of order of predominance, according to the the percentage of wine derived from manufacture, and designation of wines percentage of the wine derived from grapes grown in those States (or in all of the States listed in the grapes grown in each State. Where both political subdivisions for imported appellation, which is consistent with the multistate appellation of origin and wine). the current regulations. the listing of the percentage of the wine These amendments are liberalizing in In general, the current regulations derived from grapes grown in each State several regards. First, they would permit provide that wine derived from fruit or appear on the brand label, ATF stated the use of such an appellation where at agricultural products grown in the that it would carefully scrutinize the least 85 (rather than 100) percent of the county or State indicated on the label placement and size and type of the label wine is derived from grapes grown may be designated with an appellation statements, on a case-by-case basis, to within the areas named in the of origin. This means that appellations ensure that the label does not tend to appellation. Second, they would of origin are available to grape wine as create a misleading impression as to the eliminate the requirement to list the well as citrus wine, fruit wine, and origin of the wine. percentage of grapes from each State or agricultural wine. Current § 4.25(d) also provides for other region, thus allowing greater TTB is proposing to separate the imported wines to be labeled with an flexibility in blending for producers. appellation of origin requirements for appellation of origin that is comprised TTB notes that this approach is more grape wine from those requirements for of the names of two or no more than consistent with regard to the rules for fruit and agricultural wine because an three states, provinces, territories, or single appellations of origin, which may appellation of origin becomes similar political subdivisions of a be comprised of not less than 75 percent mandatory when grape wine is labeled country equivalent to a state, which are wine made from grapes grown in the with certain type designations or a all contiguous. The appellation may be labeled region (in the case of an vintage date. Furthermore, an used if all of the fruit or other appellation that is a State, county, or appellation of origin for grape wine

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includes viticultural areas, which have of the comments were in support of TTB statement indicating the wine was made no relevance for fruit or agricultural codifying its existing policy, and one from grapes that were frozen post- wine. Otherwise, TTB is proposing the commenter stated its belief that all harvest. It provides that wines labeled same liberalizing amendments for wines aspects of the ‘‘Estate bottled’’ with the term ‘‘ice wine,’’ ‘‘late labeled with appellations of origin, requirements should apply to the term harvest,’’ or ‘‘late picked’’ may not be regardless of whether the wines are ‘‘Estate grown,’’ except for the ameliorated, concentrated, fortified, or made from grapes, other fruit, or other requirement of the viticultural area. produced from concentrate. Finally, agricultural products. Most of the comments suggested that proposed § 4.94 provides that wine d. Estate bottled and estate grown. ‘‘Estate bottled’’ and ‘‘Estate grown’’ are made from grapes that have been Proposed §§ 4.92 and 4.93 set out the not synonymous. infected with the botrytis cinerea mold rules for use of the claims ‘‘estate In this rulemaking document, TTB is may be labeled with a term such as bottled’’ and ‘‘estate grown.’’ While the proposing to add a section to the ‘‘Botrytis Infected,’’ ‘‘Pourriture Noble,’’ ‘‘estate bottled’’ rules are unchanged, regulations that will provide for the use or another name for infection by the except for clarifying changes, the of the term ‘‘Estate grown’’ (see § 4.93) botrytis cinerea mold. proposed ‘‘estate grown’’ regulation is on a label only if all of the following f. Vintage dates for grape wine. new, and represents a change in policy. conditions are met: Proposed § 4.95 sets out the rules for the On November 3, 2010, TTB published (1) The wine is labeled with an use of vintage dates on wine labels. The Notice No. 109, an advance notice of appellation of origin; current regulations prescribing proposed rulemaking (ANPRM), that set (2) The producing winery is located requirements for labeling grape wine forth TTB policy regarding the use of within the appellation of origin; with vintage dates are found in § 4.27. the term ‘‘estate grown’’ on wine labels (3) The producing winery grew all of These regulations characterize the and requested comments (see 75 FR the grapes used to make the wine on vintage date as the year of ‘‘harvest.’’ 67666). Specifically, TTB stated that, for land owned or controlled by the Thus, wine produced from grapes that over twenty years, TTB and its producing winery within the boundaries were grown in 2012 but harvested early predecessor agency have allowed the of the appellation of origin, and in 2013 must bear the year 2013 as the term ‘‘Estate grown’’ to be used as a fermented 100 percent of the wine from vintage date. synonym for the term ‘‘Estate bottled.’’ those grapes; and However, the WWTG Labeling The regulations providing for the use of (4) If the bottling winery is not the Protocol provides that ‘‘vintage’’ is the the term ‘‘Estate bottled’’ are found in producing winery, the label must state year of growth or harvest of the grapes current § 4.26 and, in general, allow the that the wine was ‘‘estate grown’’ by the used to make the wine, as defined in use of that term only if the wine is producing winery, and the name and each Party’s laws, regulations, or labeled with a viticultural area address of both wineries must appear on requirements. The current definition in appellation of origin and the bottling the label. An acceptable labeling TTB’s regulations is thus more winery: (1) Is located in the labeled statement would be ‘‘Estate grown and restrictive than the definitions found in viticultural area; (2) grew all of the produced by ABC Winery, Seattle, the Labeling Protocol. grapes to make the wine on land owned Washington. Bottled by XYZ Winery, TTB recognizes that other countries or controlled by the winery within the Tacoma, Washington.’’ have different rules for vintage dates, boundaries of the labeled viticultural This is a liberalizing change that will based on different growing conditions in area; (3) crushed the grapes, fermented allow the use of the term, ‘‘Estate different parts of the world. For the resulting must, and finished, aged, grown,’’ in a way that distinguishes example, in the Southern Hemisphere, and bottled the wine in a continuous grape growing from bottling operations. the growing season may start in process (the wine at no time having left e. Claims on grape wine labels for September and end in April, and thus the premises of the bottling winery). viticultural practices that result in sweet includes parts of two calendar years. In Notice No. 109 explained that some wine. Proposed § 4.94 codifies in the Australia, the labeling rules provide that industry members had requested that regulations for the first time the position grapes harvested between September 1 TTB permit the use of the words ‘‘Estate that TTB’s predecessor agency set out in and December 31 of a particular grown’’ on labels of wines that do not rulings pertaining to viticultural calendar year are treated as if they were meet the ‘‘Estate bottled’’ standards in practices that result in sweet wine. TTB harvested in the following calendar year § 4.26. TTB invited comments from proposes to supersede ATF Rulings 78– for purposes of a vintage declaration. industry members, consumers, and 4, 82–4, and 2002–7, by incorporating This effectively treats the entire growing other interested parties on whether TTB the rulings’ holdings in proposed § 4.94. season as a single year. In the Northern should propose to amend the Initially, proposed § 4.94(a) sets out Hemisphere, the issue is less likely to regulations to reflect its current policy the rules for using certain terms on arise, but does come up with regard to that ‘‘Estate grown’’ may be used on a grape wine that denote the use of grapes that may be harvested in January label if the wine meets the requirements viticultural practices resulting in sweet for an ice wine type of product. for products labeled ‘‘Estate bottled’’ wine. In all such cases, the wine must TTB believes that allowing the year of under § 4.26. TTB also asked if it should also be labeled with the amount of sugar harvest to be determined based on the propose a standard for ‘‘Estate grown’’ contained in the grapes at the time of rules of the country of origin will not be in the regulations that differs from that harvest and with the amount of residual misleading to consumers. Accordingly, specified for ‘‘Estate bottled’’ and, if so, sugar in the finished wine. we are proposing to amend the what that standard should be. Proposed § 4.94 provides that the term regulations to provide that the year of TTB received 16 comments in ‘‘ice wine’’ may be used only to describe harvest for imported wines will be response to its questions pertaining to wines produced exclusively from grapes determined in accordance with the the use of ‘‘Estate grown’’ on labels. that have been harvested after they have country of origin’s laws and regulations. Only four of the comments were in naturally frozen on the vine. The TTB proposes to remove the support of TTB’s policy that ‘‘Estate proposed rule provides that wine requirement that a person who wishes grown’’ may be used on the label only produced from grapes that were frozen to label wine with a vintage date must if the wine meets the requirements for post-harvest may not be labeled as ‘‘ice possess appropriate records from the products labeled ‘‘Estate bottled.’’ A few wine,’’ but may be labeled with a producer substantiating the year of

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vintage and the appellation of origin, agricultural products’’ to bear an presented in descending order based on because the substantiation requirements appellation of origin. Proposed §§ 4.96 the percentage of wine derived from apply to all label claims, not just vintage through 4.98 for labeling fruit wine, grapes or fruit, as applicable, grown in dates. agricultural wine, or rice wine contain each year. Examples of allowable TTB proposes to liberalize the the same appellation of origin labeling statements would be as follows: ‘‘60% requirements for imported wines that requirements as are proposed elsewhere of the grapes used to make this wine are bottled in the United States, by for labeling grape wine. See §§ 4.88 were harvested in 2014; the remaining removing the requirement that such through 4.99. 40% were harvested in 2013,’’ or ‘‘This wines must have been bottled in wine is a blend of 50% wine made from 5. Subpart H––Labeling Practices That containers of 5 liters or less prior to apples harvested in 2012 and 50% wine Are Prohibited if They Are Misleading importation, or that they be bottled in made from apples harvested in 2011.’’ the United States from the original Proposed subpart H sets forth certain Proposed § 4.135 is derived from container of the product showing a labeling practices that are prohibited if current § 4.39(k) and in general, vintage date. This will allow the use of they are used in a misleading way. Most continues to prohibit misleading vintage dates on wine imported in bulk of these subpart H provisions restate references to the origin of the wine. The containers and bottled in the United and reorganize rules currently found in proposed section liberalizes TTB’s States, as long as the bottlers have the the TTB regulations. Some of the current policy by specifically appropriate documentation proposed revisions are set forth below. authorizing the use of truthful, accurate, substantiating that the wine is entitled Proposed § 4.133(a) broadens existing and specific information about the to be labeled with a vintage date. language in current § 4.39(a)(8) to origin of the grapes, fruit, or other The current regulations also provide prohibit the use of terms defined in part agricultural materials that were used to that wine bearing a vintage date must 4 in a manner that is not consistent with produce the wine when such wine is also bear an appellation of origin that is the part 4 definitions. This would not labeled with an appellation of shown in direct conjunction with the include optional designations as well as origin. The name of the place may not type designation as required by mandatory designations. For example, appear on the label in a way that creates § 4.32(a)(2). As discussed in the grape under the proposed rule, a wine that the misleading impression that the wine wine appellation of origin section of this was produced from grapes that were not is entitled to an appellation of origin. preamble, this rule would remove the frozen on the vine may not be labeled Under both current and proposed requirement that the appellation of with the optional claim ‘‘ice wine.’’ regulations, a wine is entitled to the origin be shown in direct conjunction Proposed § 4.133(b) prohibits the use of name of a State as an appellation of with the type designation. Instead, the coined words that simulate or imitate origin if, among other things, at least 75 appellation of origin would have to be any class or type designation set forth in percent of the wine is derived from fruit shown in the same field of vision as the parts 4, 5 and 7 unless the wine or agricultural products grown in that type designation. conforms to the requirements prescribed State, and it has been fully finished The regulations in current § 4.27 also with respect to such designation and is (except for certain cellar treatment and provide that for a wine to be labeled in fact so designated on its labels. blending) within the labeled State or an with a ‘‘vintage date,’’ it must have been Finally, proposed § 4.133(c) and (d) adjacent State. Thus, if a grape wine is derived from grapes harvested in the prohibit certain misleading references to made in New York, and 50 percent of labeled calendar year. It has been TTB’s grape varieties and statements of harvest the grapes are grown in New York and longstanding policy that only one date, respectively, subject to the the other 50 percent are grown in vintage date may appear on a label, even provisions of proposed §§ 4.136 and Virginia, the wine would not be entitled if the wine is made from grapes 4.134, respectively, as discussed below. to either a New York or a Virginia harvested in different years. We note In general, proposed § 4.134 restates appellation of origin. Furthermore, the that in 1980, in response to a petition, the existing rules prohibiting certain wine would not be entitled to a ATF aired a proposal to allow multiple statements of age unless they are made multistate appellation of origin, because vintage dates in an advance notice of on a label that bears a vintage date. It New York and Virginia are not proposed rulemaking (see Notice No. allows certain miscellaneous date contiguous. 357, November 13, 1980, 45 FR 74942). statements, such as statements about the Under the proposed regulations, the Comments on that proposal were evenly date on which a business was founded. label for such a wine may include divided, and subsequently ATF issued a It also specifically states that, subject to additional information about where the notice of proposed rulemaking setting certain exceptions discussed below, the grapes were grown, even though the forth specific proposals (Notice No. 378, use of harvest or growth dates is not wine is not entitled to either a New August 5, 1981, 46 FR 39850). Because generally authorized for wines other York or a Virginia appellation of origin. only a few comments (mainly opposed than those labeled with a vintage date However, neither state name can stand to allowing multiple vintage dates on in accordance with proposed § 4.95. alone as though the wine is entitled to labels) were received in response to that Proposed § 4.134 liberalizes current a single state appellation of origin, nor document, on May 18, 1984, ATF TTB policy prohibiting statements can the wine be designated as ‘‘New published Notice No. 529, which relating to the years of harvest of grapes York/Virginia wine.’’ The additional withdrew the proposal (49 FR 21083). or fruit as additional information for information must set forth the origin of We do not intend to reopen this issue wines designated as grape wine or fruit 100 percent of the grapes, fruit or other at the present time. Accordingly, TTB wine. Accordingly, the proposed agricultural products used to make the proposes to codify this policy in regulations allow the use of additional wine, in descending order of proposed § 4.95. truthful, accurate, and specific predominance, together with the place g. Appellations of origin for fruit wine, information about the year of harvest of where the wine was fermented. This agricultural wine, and rice wine. As the grapes or fruit, provided that the will ensure that the consumer is not discussed earlier in this preamble, label indicates the percentage of wine misled into believing that a statement of current § 4.25 prescribes the rules for derived from grapes or fruit, as the origin of the grapes used to make a use of appellations of origin and allows applicable, harvested in each year. If grape wine is the same as an appellation wine produced from ‘‘fruit or applicable, the years of harvest must be of origin for that wine. For example, if

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the wine in question is designated ‘‘red continue to allow this practice. TTB Current § 4.24 sets out the rules for wine,’’ the proposed regulation would seeks comments on this proposal. ‘‘generic,’’ ‘‘semi-generic,’’ and ‘‘non- allow the label to include a statement TTB is proposing to eliminate the generic’’ designations of geographic such as ‘‘This wine was fermented and provision in current § 4.39(j) that significance. TTB is proposing to bottled in New York from 50 percent inappropriately treats ‘‘product names’’ reorganize the standards of identity so grapes grown in New York and 50 as if they were ‘‘brand names,’’ and thus that proposed § 4.142 includes all of the percent grapes grown in Virginia.’’ causes confusion. The current text type designations within the class Proposed § 4.136(a) and 4.136(b) allows for certain ‘‘product names with designation ‘‘still grape wine.’’ restate the prohibition in current specific geographical significance’’ In addition to the various § 4.39(n) on the use of varietal names, when qualified with the word ‘‘brand,’’ designations discussed above, a type designations of varietal even where the geographical name does statement of composition may be significance, semi-generic geographic not accurately represent the origin of the required to accompany certain class and type designations, or geographically wine. [Emphasis added.] TTB solicits type designations. For example, current distinctive designations, on wines that comments on the proposed revisions § 4.21(d), (e), and (f) prescribe the are not made in accordance with the with regard to representations as to standards of identity for citrus wine, standards set forth in the standards of origin. In particular, TTB requests fruit wine, and wine from other identity for still grape wine, sparkling information on whether this proposed agricultural products, respectively. grape wine, and carbonated grape wine. change may affect current labels. These standards require that an The proposed language also makes it TTB is also proposing to eliminate the adequate statement of composition be clear that the use of such names on a provision in current § 4.39(l), which placed on the label, along with the grape wine that does not meet the prohibits the use of foreign terms which appropriate class designation, when the requirements for use of the designation (1) describe a particular condition of the wine is produced from more than one named is prohibited if it tends to create grapes at the time of harvest; or (2) type of fruit, citrus fruit, or agricultural a false or misleading impression as to denote quality under foreign law on product, respectively. TTB is proposing labels of domestically produced wine. the designation, origin, or identity of the to amend the regulations to allow a TTB believes that the misleading use of wine. designation (such as ‘‘apple-pear wine’’) such foreign terms is covered by the rather than a statement of composition. Proposed § 4.136(c) codifies and general prohibition of misleading TTB is amending the standards of supersedes ATF Ruling 85–14, which statements or representations as to the identity to incorporate all of the ways in allowed the use of certain information age, origin, identity, or other which an industry member may about grape varieties as additional characteristics of the wine (see proposed designate wine in accordance with information on the labels of certain § 4.122). TTB’s regulations. By indicating all of wines. The proposed regulation allows the ways an industry member must or 6. Subpart I—Standards of Identity for the use of truthful, accurate, and may designate wine within the Wine specific additional information on the standards of identity, the proposed label about the grape varieties used to a. General overview of the classes and regulations provide better guidance on make a still grape wine, sparkling grape types of wine. The regulations governing what constitutes a class designation or wine, or carbonated grape wine, how wine must be identified on labels a type designation, and when a type provided that the information includes and the provisions for optional labeling designation may be used in place of a every grape variety used to make the statements are found in current subpart class designation. wine, listed in descending order of C, and are referred to as the ‘‘standards b. Production standards. Current predominance. The percentage of each of identity.’’ Current § 4.21 sets forth the § 4.21 refers to numerous production grape variety may be, but is not required standards of identity for wine and standards that impact the way in which to be, shown on the label, with a prescribes the several classes and types a wine may be designated. These tolerance of two percentage points. of wine that an industry member may include amelioration limits, volatile When shown, percentages must be use to designate wine. The consistent acidity levels, and the addition of shown for all grape varieties listed, and and accurate designation of wine leads brandy and alcohol. However, in many the total must equal 100 percent. to consumer and trade understanding of cases, these standards refer to outdated As discussed later in this document, the quality and identity of the wine. rules under chapter 51 of the Internal TTB is proposing to liberalize the rules Current § 4.32 requires a class, type or Revenue Code. for use of a designation that includes other designation to appear on the brand Wine that is domestically produced more than one grape variety. Under this label. The general rules for class and must be made in compliance with the proposal, a varietal designation that type designations are set forth in current production standards set forth in 26 includes the names of two or more § 4.34. In general, the regulations U.S.C. 5381–5387, and designated in varieties may be used without require the class designation to appear accordance with 26 U.S.C. 5388. These disclosing the percentage of the wine on the label; however, certain type rules are also found in TTB’s IRC-based derived from each variety, as is designations are authorized for use in wine regulations in 27 CFR part 24. currently required under § 4.23(d). If place of a class designation. These other In accordance with part 24, wine that this option is available, it is not clear type designations are not specified in is the product of the juice or must of whether industry members will still the current standards of identity but are sound, ripe grapes or other sound ripe want to include information about grape found elsewhere in the regulations in fruit (including berries), made with any varieties as additional information, part 4. For example, under current cellar treatment authorized by subparts rather than labeling their wines with a § 4.23, the names of one or more grape F and L of part 24 and containing not varietal designation that includes two or varieties may be used as a type more than 21 percent by weight of total more grape varieties. However, TTB designation of a grape wine, subject to solids, is deemed to be ‘‘natural wine.’’ recognizes that many wine labels certain conditions. In addition to these Classes 1, 2, and 3 of the existing currently include information about varietal type designations, current § 4.28 regulations in current § 4.21 are grape grape varieties as additional sets forth the conditions for use of ‘‘type wine, sparkling grape wine, and information; thus, we are proposing to designations of varietal significance.’’ carbonated grape wine, respectively,

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and are produced by the normal accompanied by an affirmed laboratory TTB is proposing to update these alcoholic fermentation of the juice of analysis, that the practices and standards to clarify that these classes of sound, ripe grapes (including restored procedures used to produce the wine wine must comply with the standards or unrestored pure condensed grape constitute proper cellar treatment under for ‘‘natural wine’’ set forth in section must), with or without the addition, regulations prescribed by the Secretary; 5382 of the IRC. For imported wines, after fermentation, of pure condensed (2) The Secretary has on file or is this means that a wine designated as a grape must, and with or without added provided with a certification required still grape wine, sparkling grape wine, grape brandy or alcohol, but without by an international agreement or treaty or carbonated grape wine must be made other addition or abstraction except as covering proper cellar treatment, or the in accordance with the standards set may occur in cellar treatment. As wine is covered by an international forth in 26 U.S.C. 5382 and 5383 for discussed further below, TTB is agreement or treaty covering proper natural wine, and a wine designated as proposing to revise the standards of cellar treatment that does not require a a fruit wine must be made in accordance identity for grape wines and for fruit certification; or with the standards set forth in 26 U.S.C. wines to clarify that these wines must (3) In the case of an importer that 5382 and 5384 for natural wine. It be ‘‘natural wines’’ in accordance with owns or controls or that has an affiliate should be noted that imported wines 26 U.S.C. 5381–5383. that owns or controls a winery operating can comply with the standards set forth c. Natural wine certification. Prior to under a basic permit issued by the in 26 U.S.C. 5382 if the practices used amendment in 2004, section 5382 of the Secretary, the importer certifies that the to make the wine have been accepted by IRC, 26 U.S.C. 5382(a), set forth certain practices and procedures used to the United States in an international standards for the proper cellar treatment produce the wine constitute proper agreement or treaty. Under the proposed of ‘‘natural wine.’’ That section cellar treatment under regulations rule, imported wines that are not provided that ‘‘proper cellar treatment prescribed by the Secretary. entitled to a grape wine or fruit wine of natural wine constitutes those The certification provision went into designation because they are not practices and procedures in the United effect on January 1, 2005. Effective May ‘‘natural wine’’ would have to meet the States and elsewhere, whether historical 28, 2008, TTB adopted a final rule standards of identity for another or newly developed, of using various implementing the certification designation set forth in part 4 or be methods and materials to correct or requirements regarding production designated with a statement of stabilize the wine, or the fruit juice from practices and procedures for imported composition. which it is made, so as to produce a natural wine. The regulations Proposed § 4.151 restates the finished product acceptable in good implementing this statutory requirement requirements currently found in commercial practice.’’ Section 5382(b) are found in 27 CFR 27.140, which § 4.34(a) with regard to the designation then went on to provide certain states that, except as otherwise of wines with a truthful and adequate practices that were specifically provided, an importer of natural wine statement of composition where the recognized, including standards for the must have an original or copy of a wine does not conform to any of the amelioration and sweetening of natural certification from the producing country standards of identity found in part 4. As wine and standards for the addition of stating that the practices and procedures announced in the Department of the wine spirits to natural wine. used to produce the imported wine Treasury’s semiannual regulatory Section 2002 of the Miscellaneous constitute proper cellar treatment in agenda (available online at https:// Trade and Technical Corrections Act of part 24. As provided for in the law, one www.reginfo.gov), TTB plans to publish 2004, Public Law 108–429, 118 Stat. exception to this requirement is for a notice of proposed rulemaking titled 2434 (‘‘the Act’’), was signed by the natural wines that are imported from ‘‘Proposals Concerning Labeling of President on December 3, 2004. Section countries that have an international Flavored Wine,’’ in which TTB will 2002 of the Act revised section 5382(a) agreement or treaty (enological practices propose more specific rules regarding of the IRC. The revision of section agreement) with the United States the labeling of flavored wine products. 5382(a) took effect on January 1, 2005, specifying that the practices and Accordingly, proposed § 4.151(c) simply and involved the following principal procedures used to produce the wine states that ‘‘the appropriate TTB officer substantive changes: (1) The addition of are acceptable to the United States. may require a statement of composition a new paragraph (1)(B) to provide that, Currently, 35 countries have enological to identify the base wine(s), including in the case of wine produced and practices agreements with the United blends of wine or fermentable materials, imported subject to an international States. These agreements exempt certain as well as other materials added to the agreement or treaty, proper cellar natural grape wines from the natural wine before, during, and after treatment of natural wine includes those wine certification requirement. fermentation, as appropriate, in order to practices and procedures acceptable to d. Proposed changes and questions ensure that the label provides adequate the United States under the agreement pertaining to the standards of identity information about the identity of the or treaty; and (2) the addition of a for wine. It is clear that the existing product.’’ paragraph (3) setting forth a new standards of identity for grape wine This proposed language would not certification requirement regarding (including sparkling grape wine and change current policy with regard to production practices and procedures for carbonated grape wine), citrus wine, statements of composition on wine imported natural wine produced after and fruit wine are intended to labels. Proposed § 4.151(c) also sets December 31, 2004. incorporate the standards set forth in forth current policy regarding The new certification provision the IRC for the sweetening and statements of composition for a blend of directs the Secretary of the Treasury to amelioration of natural wine, as well as two different types of fruit or accept the practices and procedures the standards for the addition of wine agricultural wine. In those cases, the used to produce the wine if, at the time spirits. However, as set forth in further statement of composition must include of importation, one of the following detail below, because of amendments of the names of the types of wine (such conditions is met: over time to the IRC standards, the as, ‘‘blueberry wine and apple wine’’ or (1) The Secretary has on file or is existing regulations contain a patchwork ‘‘mead/rhubarb wine’’). provided with a certification from the of inconsistent references to current and TTB is proposing substantive changes government of the producing country, prior standards. that affect multiple classes of wine, as

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well as several substantive changes that for industry members, as well as the fruit wine, and wine from other affect individual classes of wine. These public at large. agricultural products as ‘‘dessert wine.’’ changes are described below: Accordingly, this proposed rule Dessert wine is defined as wine having i. Amelioration. Pursuant to 26 U.S.C. removes two of the three amelioration an alcoholic content in excess of 14 5383 and 27 CFR 24.10, amelioration is methods listed in the part 4 regulations. percent but not in excess of 24 percent the addition to wine or juice, of water, This change is made in proposed by volume. TTB is not proposing to sugar, or a combination of both to §§ 4.142, 4.145, and 4.146. The change this standard, but seeks reduce or balance high acid content in proposed rule will clarify that grape comments on it, as explained below. some juice and wines. Amelioration wines, and fruit wines must all conform TTB has rejected applications for may take place before, during, or after to the standards for natural wine set COLAs for labels that carry the term fermentation. Current § 4.21(a) provides forth in the IRC. ‘‘dessert wine’’ where the wine did not three amelioration standards for grape ii. Cellar treatment. The current contain more than 14 percent alcohol by wine, and current § 4.21(d), (e), (f), and regulations for classes 1, 4, and 5 (grape volume. It has been suggested that the (g) provide two amelioration standards wine, citrus wine, and fruit wine) trade and consumer understanding of each for citrus wine, fruit wine, and prohibit the addition or abstraction the term ‘‘dessert wine’’ may no longer wine from other agricultural products. (removal) of substances other than those be consistent with the meaning that the Current § 4.21(a) allows grape wine to specified in the standard of identity and regulations assign to it. TTB has be ameliorated before, during, or after those provided for as cellar treatment. approved labels for wines containing no fermentation either: (1) By adding, As indicated above, this proposed rule more than 14 percent alcohol by volume separately or in combination, dry sugar, will clarify that grape wine and fruit that include the phrase ‘‘may be served or such an amount of sugar and water wine must be made according to the as dessert wine.’’ TTB believes that solution as will not increase the volume standards set forth in 26 U.S.C. 5382 consumers may believe that the term of the resulting product more than 35 and 5384 for natural wine under the ‘‘dessert wine’’ indicates the level of IRC. Thus, the proposed standards of percent, as long as the product so sweetness that the wine possesses, or identity for grape wine and fruit wine ameliorated does not have an alcohol may attribute some other meaning to the cross reference the statutory cellar content derived by fermentation of more word. Accordingly, TTB is interested in treatment provisions for natural wine in than 13 percent by volume, or a natural receiving comments pertaining to the sections 5382 and 5384. This change is acid content, if water has been added, use of ‘‘dessert wine’’ as a designation made in proposed §§ 4.142 and 4.145. that denotes alcohol content. TTB is of less than five parts per thousand, or iii. Added brandy or alcohol. The a total solids content of more than 22 also interested in receiving comments current regulations concerning classes 1, on whether there is a more appropriate grams per 100 cubic centimeters; (2) by 4, and 5, allow for the addition of grape term for designating wines that contain adding, separately or in combination, brandy, citrus brandy, or fruit brandy, more than 14 percent alcohol by volume not more than 20 percent by weight of respectively, or alcohol. Domestically but less than 24 percent alcohol by dry sugar, or not more than 10 percent produced natural wines may only be volume. by weight of water; or (3) in the case of produced with the addition of brandy or v. Light wine. The current regulations domestic wine, in accordance with 26 wine spirits that are derived from the for grape wine allow the term ‘‘light’’ to U.S.C. 5383. same kind of fruit. For example, grape be used in two instances. The first is as In general, the first two amelioration wine can be produced with the addition an alternative designation for ‘‘table methods date back to the late 1930s and of grape brandy or grape wine spirits, wine,’’ which is defined as ‘‘grape wine could be used for both domestic and and strawberry wine can be produced having an alcoholic content not in imported wines. The methods with the addition of strawberry brandy excess of 14 percent by volume.’’ The conformed to the provisions of the 1939 or strawberry wine spirits. With regard second instance in which ‘‘light’’ may IRC at 26 U.S.C. 3036. When the IRC of to imported wines, however, in some be used for grape wine is as a 1954 was enacted, new amelioration cases, the United States has recognized designation that denotes that a ‘‘dessert provisions were added. A specific fortification practices of the country of wine’’ that has no more than 17 percent reference to section 5383 of the 1954 origin that allow for the use of spirits alcohol by volume (for sherry) or 18 IRC was added to § 4.21 through the that are derived from a different source. percent alcohol by volume (for angelica, publication of T.D. 6319 (23 FR 7698) TTB believes that the existing madeira, muscatel, or port). The current on October 4, 1958. regulation’s authorization of the classes for citrus wine, fruit wine, and The amelioration rule in part 24 (27 addition of ‘‘grape brandy or alcohol’’ to wine from other agricultural products CFR 24.178) states that ‘‘the fixed acid grape wine, and the addition of ‘‘fruit also allow the designation ‘‘light wine’’ level of the juice or wine may not be brandy or alcohol’’ to fruit wine may in lieu of the designation ‘‘table wine.’’ less than 5.0 grams per liter after the cause confusion and is therefore TTB is not proposing to change the addition of ameliorating material.’’ proposing to instead authorize the standard for ‘‘light’’ wine but is However, this requirement only applies addition of ‘‘added spirits of the type interested in receiving comments as to in part 4 if water was used as the authorized for natural wine under 26 whether the proposed use of the ameliorating material. TTB has found U.S.C. 5382’’ in proposed §§ 4.142 and designation ‘‘light’’ on wine labels, to that the difference in methods is 4.145. This change will incorporate the indicate alcohol content, is consistent confusing for industry members, as well standards which specify that wine with industry and consumer as the public at large. spirits must be derived from the same understanding of that term. Furthermore, different terminology type of fruit, which are found in 26 vi. Natural wine. Current classes 1, 4, relating to amelioration is used in U.S.C. 5382, but it will also provide for and 5 provide for wine that does not current parts 4 and 24. Current part 4 the recognition of different standards for contain ‘‘added brandy’’ to be refers to a ‘‘natural acid content’’ in certain imported wines pursuant to designated as ‘‘natural.’’ TTB has parts per thousand, while current part international agreements. received numerous applications for 24 refers to a ‘‘fixed acidity level’’ in iv. Dessert wine. Current § 4.21(a), (d), COLAs which use the designation grams per liter. The difference in (e), (f), and (g) prescribe the standard for ‘‘natural.’’ On these proposed labels, the terminology and units also is confusing designating grape wine, citrus wine, term ‘‘natural’’ was intended to indicate

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to the consumer that the wine was Thus, a sparkling wine that undergoes and regulations of the Republic of Korea produced following a certain set of secondary fermentation in a tank may be governing the manufacture of this production guidelines. designated, for example, as ‘‘Sparkling product. Proposed § 4.148(c)(2) TTB believes that the designation wine,’’ with the further designation of recognizes Gyeongju Beopju as a type ‘‘natural’’ may no longer have the ‘‘New York champagne—not fermented designation, which means that the meaning ascribed to it by the in the bottle—Charmat process,’’ or words ‘‘rice wine’’ would not have to regulations. Additionally, the definition ‘‘California champagne style—bulk appear as part of the designation. TTB in the current part 4 is inconsistent with process’’ as long as the use of the term seeks comments on whether this is the IRC definition. Accordingly, the ‘‘champagne’’ complies with the appropriate, or whether the product standards of identity no longer provide grandfathering and other rules set forth should be designated as ‘‘Gyeongju that grape wine or fruit wine containing in proposed § 4.174. Beopju rice wine.’’ TTB Ruling 2012–3 no added brandy or alcohol may be • Fruit wine and citrus wine: The also recognizes Andong Soju, which is designated as ‘‘natural.’’ TTB is standards of identity currently provide a distilled spirit, as a distinctive product interested in receiving comments for a class, fruit wine, in § 4.21(d) and of the Republic of Korea. As discussed regarding whether trade and consumer a class, citrus wine, in § 4.21(e). The in section II D of the preamble, TTB is understanding of the term ‘‘natural,’’ production requirements, such as proposing to amend the distilled spirits when used on a wine label, is that no amelioration and acidity limits, are the regulations to incorporate this holding brandy has been added to the wine. TTB same for fruit wine and citrus wine. of the ruling, and to supersede TTB is also interested in receiving comments Furthermore, the ways in which fruit Ruling 2012–3 in its entirety. that indicate how the industry and wine and citrus wine may be designated • Varietal (grape type) labeling: consumers interpret the term ‘‘natural’’ are consistent. Finally, TTB does not Proposed § 4.156 sets out the rules for in relation to wine. Finally, commenters receive many applications for COLAs varietal (grape type) labeling as a type should let TTB know if the proposed for wines designated as ‘‘citrus wine’’ designation for grape wine. The change would impact existing labels. (as opposed to applications for COLAs proposed rule is largely consistent with vii. Changes pertaining to individual for citrus wines derived wholly from the current regulation, but sets out some classes or types. In addition to the one kind of citrus fruit, such as ‘‘orange liberalizing changes consistent with the changes affecting multiple classes of wine’’ or ‘‘grapefruit wine’’). WWTG Labeling Protocol, discussed wine discussed above, TTB is making Eliminating the class ‘‘citrus wine’’ earlier in this preamble. the following changes affecting certain would not require a change to labels of The regulation providing for the use individual classes of wine: citrus wines that are made from a single of one or more grape varieties as the • Champagne ‘‘style’’ and ‘‘type:’’ type of citrus fruit. For these reasons type designation for grape wine is in Current § 4.21(b)(2) recognizes and because citrus is a type of fruit, TTB current § 4.23. In addition to other ‘‘champagne’’ as a type of sparkling proposes to eliminate the class of requirements, current § 4.23 requires grape wine the effervescence of which ‘‘citrus wine’’ and to include any wines that a wine labeled with a varietal results solely from the secondary made from citrus fruits in the fruit wine designation also be labeled with an fermentation of the wine in glass class. TTB solicits comments on appellation of origin. containers of not greater than one gallon whether this change (in proposed Subject to certain exceptions, current capacity. Sparkling wines having the § 4.145) will require changes to existing § 4.23(b) provides that the name of a taste, aroma, and characteristics labels. single grape variety may be used as the generally attributed to champagne but • Agricultural wine: Current § 4.21(f) type designation of a grape wine if not not otherwise conforming to the provides that ‘‘wines from other less than 75 percent of the wine is standard for champagne may, in agricultural products’’ constitute class 6. derived from grapes of that variety, and addition to but not instead of the class This class includes wines produced if all of that 75 percent is grown in the designation ‘‘sparkling wine,’’ be further from honey, raisins, dandelions, rice, area indicated by the labeled designated as ‘‘champagne style’’ or maple syrup, and agave. This class does appellation of origin. ‘‘champagne type’’ or as ‘‘champagne’’ not include wines produced from fruit Current § 4.23(d) sets forth the current (along with an appellation of origin), that is used in the production of grape rules for the use of two or more grape and a qualifying term such as ‘‘bulk wine, fruit wine, or citrus wine. varieties as the type designation for a process,’’ ‘‘fermented outside the Currently, wine produced from rice in grape wine. All of the grapes used to bottle,’’ ‘‘secondary fermentation accordance with the commonly make the wine must be of the varieties outside the bottle,’’ ‘‘secondary accepted method of manufacture of such shown on the label. The percentage of fermentation before bottling,’’ ‘‘not a wine is designated as Sake´, which is the wine derived from each variety must fermented in the bottle,’’ or ‘‘not bottle a type of ‘‘wine from other agricultural be shown on the label (with a tolerance fermented.’’ The term ‘‘charmat products.’’ of plus or minus 2 percentage points). method’’ or ‘‘charmat process’’ may be TTB proposes to move Sake´ from Finally, if the wine is labeled with a used as additional information. current class 6, and create a new class, multicounty appellation of origin, the The proposed regulations in ‘‘rice wine,’’ in order to more clearly percentage of the wine derived from § 4.173(d) continue to allow the use of describe the standards for rice wines, each variety from each county must be ‘‘champagne’’ with one of the qualifying including Sake´ and Gyeongju Beopju. shown on the label; and if the wine is terms specified above on products Pursuant to Article 2.13.2 of the United labeled with a multistate appellation of designated as ‘‘sparkling wine,’’ where States-Korea Free Trade Agreement, the origin, the percentage of the wine their effervescence results from United States agreed to recognize derived from each variety from each secondary fermentation in containers Gyeongju Beopju as a distinctive State must be shown on the label. with a capacity of more than one gallon. product of the Republic of Korea. TTB is proposing to make changes The proposed regulations clarify that Gyeongju Beopju was recognized in TTB consistent with the WWTG Labeling such wines must comply with the rules Ruling 2012–3 as a non-generic Protocol. For wines labeled with more applicable to the use of ‘‘champagne’’ as designation of geographic significance, than one grape variety as the type a semi-generic designation, in and as a product made in the Republic designation, these changes would accordance with proposed § 4.174. of Korea in accordance with the laws require that not less than eighty-five

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percent (instead of 100 percent) of the the rules for the use of the designation of these nongeneric names are also the wine be derived from grapes of the ‘‘Gamay Beaujolais’’ for wines bottled ‘‘distinctive’’ designations of specific labeled varieties. They would also prior to April 9, 2007. However, as set wines. A name of geographic remove the requirement that the forth in current § 4.28(e)(3), the significance is deemed to be a percentage of the wine derived from designation ‘‘Gamay Beaujolais’’ may distinctive designation if it is known to each variety must be shown on the not be used on labels of American wine the U.S. consumer and trade as the label. The proposed regulations remove bottled on or after April 9, 2007. While designation of a specific wine of a the requirement that, if the wine is wines bottled prior to that date may still particular place or region, labeled with a multicounty or multistate bear the designation in accordance with distinguishable from all other wines. appellation of origin, the percentage of the transitional rule, TTB does not Current section 4.24(c)(3) states that the wine derived from each county or believe that it is necessary or useful to names such as ‘‘Chambertin,’’ State must be shown on the label. The keep the transitional rule in the ‘‘Liebfraumilch,’’ and ‘‘Lacryma Christi’’ proposed rule adds a requirement that regulations. However, TTB seeks are examples of distinctive designations. each grape variety listed must be in comments on whether that provision A list of foreign distinctive designations greater proportion in the wine than any should be kept in the regulations. appears in subpart D of part 12. variety that is not listed, and requires e. Generic, semi-generic, and Additional examples of foreign that the varieties be listed in descending nongeneric designations of geographic nongeneric names that are not order of predominance, based on the significance. The regulations prescribing distinctive designations of wine are percentage of wine that is derived from requirements for labeling wine with listed in subpart C of part 12. each grape variety. Thus, if a wine is terms that have been found to be This proposed rule would codify made from four different varieties of generic, semi-generic, and nongeneric these provisions in three separate grapes, with the first representing 50 designations of geographic significance sections, proposed sections §§ 4.173 percent of the wine, the second are currently found in § 4.24. As through 4.175. representing 40 percent of the wine, the described in more detail below, these Proposed § 4.173 defines generic third representing seven percent of the regulations have not been updated to designations of geographical wine, and the fourth representing three reflect amendments to the IRC in 2006 significance as ‘‘the name of a class or percent of the wine, the bottler would regarding the use of certain ‘‘semi- type of wine that once had geographic have three options under the proposed generic’’ names; thus, we are proposing significance but has been deemed by the rule if it wishes to use a varietal to amend the regulations to reflect those Administrator to have lost any designation. It could list all four of the amendments to the IRC. geographic significance.’’ Also, varieties, in descending order of The general rule, as stated in current paragraph (b) of proposed § 4.173 makes predominance, or it could list the first § 4.24(c)(1), is that a name of geographic clear that ‘‘vermouth’’ and ‘‘Sake´’’ three varieties, in descending order of significance, which is also the comprise the list of generic predominance, or it could list simply designation of a class or type of wine, designations, and are not merely the first two varieties, in descending may be used in the designation of only examples of such designations. order of predominance. However, the those wines of the origin indicated by As mentioned above, current § 4.24(b) proposed rule would not allow the such name. Examples of these provides that semi-generic designations bottler to include the fourth variety ‘‘nongeneric’’ names (such as may be used to designate wines of an (representing three percent of the wine) ‘‘Spanish,’’ or ‘‘Napa Valley’’), are listed origin other than that indicated by the without also including the third variety in § 4.24(c)(2). The exception to this name only if there appears in direct (representing seven percent of the general rule is where the Administrator conjunction therewith an appropriate wine). has found a name of geographic appellation of origin disclosing the As previously noted, proposed significance to be either ‘‘generic’’ or name of the true place of origin of the § 4.23(b) requires that 75 percent of the ‘‘semi-generic.’’ wine, and if the wine so designated wine must be derived from grapes of the ‘‘Generic’’ names are those specified conforms to the standards of identity, if variety listed on the label. This allows in current § 4.24(a)(2) (such as any, for such wine contained in the for some blending with wines made ‘‘Vermouth’’ and ‘‘Sake´’’), which are no regulations in part 4, or, if there is no from other grapes, which are not longer considered as having geographic such standard, to the wine trade’s required to be listed on the label. TTB significance but are indicative of a class understanding of such class or type. believes that the proposed rule would or type of wine. A wine may be labeled Examples of semi-generic names that are provide consumers with adequate with a generic designation regardless of also type designations for grape wines information about the identity of the the place of origin. ‘‘Semi-generic’’ are: Angelica, Burgundy, Claret, Chablis, product, and encourage the use of designations (such as ‘‘Madeira’’ and Champagne, Chianti, Malaga, Marsala, multiple varietal designations by ‘‘Sherry’’) are those names which retain Madeira, Moselle, Port, Rhine Wine (or producers. The proposed regulations some geographic significance but which Hock), Sauterne, Haut Sauterne, Sherry, would afford greater flexibility in the are also known as the designation of a and Tokay. blending of wines. class or type of wine. Current section In proposed § 4.174, TTB is proposing Proposed § 4.157 sets forth rules on 4.24(b)(1) provides that semi-generic substantive changes to the regulations grape type designations of varietal names may be used to designate wines governing the use of semi-generic significance. These are largely of an origin other than that indicated by designations on wine labels. These consistent with current § 4.28, with the the particular geographic name, changes are consistent with changes in exception of a proposed change relating provided that the designation is the law, which in turn stem from the to the designation ‘‘Gamay Beaujolais.’’ accompanied by an appellation of origin 2006 Agreement between the United In 1997, ATF published a final rule indicating the true origin of the wine. States and the European Union (EU) on (T.D. ATF–388, 62 FR 16749) that In addition to the general rule set Trade in Wine (‘‘the EU Agreement’’). phased out the use of the designation forth above which restricts the use of The EU Agreement addresses a wide ‘‘Gamay Beaujolais’’ on American wine nongeneric names used to designate range of issues regarding the labels over a period of 10 years. The wines, current § 4.24(c)(1) provides that production, labeling, and import current regulations at § 4.28(e)(3) set out the Administrator may find that certain requirements for wine that help to

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establish predictable conditions for Accordingly, proposed § 4.174 defines a type designation for an American wine bilateral wine trade. a semi-generic designation as a only if that name has been approved by Under section 5388(c) of the Internal geographic term which is also the the Administrator. A list of approved Revenue Code of 1986 (IRC), 26 U.S.C. designation of a class or type of wine grape variety names appears in 5388(c), a name of geographic and which has been deemed to have proposed subpart J. significance, which is also the become semi-generic by the Proposed § 4.191 states how to designation of a class or type of wine, Administrator. It lists the semi-generic petition the Administrator for approval is determined to be semi-generic only if names and the restrictions on their use, of a grape variety name. This is largely so found by the Secretary of the in accordance with the provisions of 26 consistent with existing § 4.93. Treasury. In the EU Agreement, the U.S.C. 5388. It should be noted that However, TTB is proposing a change in United States made a commitment to while the law provides the same proposed § 4.191(e) to codify TTB’s seek to change the legal status of those protection to ‘‘Retsina’’ as it does to the current policy with regard to the names to restrict their use solely to names that are listed as being ‘‘semi- administrative approval of grape variety wines originating in the applicable EU generic,’’ it does not specifically provide names pending future rulemaking. Member State, with certain exceptions that ‘‘Retsina’’ is a semi-generic name. Current § 4.93 provides that the TTB for ‘‘grandfathered’’ names. The TTB believes that this leads to Administrator will publish the list of grandfathered names are: Burgundy, confusion. Accordingly, TTB is approved grape variety names in the Chablis, Champagne, Chianti, Claret, proposing to amend the regulations to Federal Register annually. TTB is Haut Sauterne, Hock, Madeira, Malaga, recognize ‘‘Retsina’’ as a semi-generic proposing to revise this provision in Marsala, Port, Retsina, Rhine, Sauterne, name. It should be further noted that, proposed § 4.191 to eliminate the Sherry, and Tokay. while ‘‘Angelica’’ is included as a semi- provision for publishing the names in Shortly thereafter, section 422 of the generic name, it is not subject to the the Federal Register. Instead, a Tax Relief and Health Care Act of 2006 grandfather provisions under 26 U.S.C. complete list of grape variety names (including those listed in regulations (Pub. L. 109–432) amended section 5388 5388. and those temporarily approved by the of the IRC (26 U.S.C. 5388) to ATF Ruling 73–5 held that Spanish Administrator) may be found on the implement Article 6 of the EU wines bearing labels with semi-generic TTB website, at https://www.ttb.gov. Agreement. The effect of this change in designations such as ‘‘Burgundy,’’ ‘‘Chablis,’’ ‘‘Sauterne,’’ or ‘‘Rhine’’ do While neither the proposed nor the law is to restrict use of the semi-generic existing regulations require TTB to terms pursuant to the EU Agreement. not meet the requirements of § 4.25(a)(3). Because proposed § 4.174(c) engage in rulemaking before approving Article 6.2 of the EU Agreement and requires that imported wine labeled the use of a grape variety name to 26 U.S.C. 5388 allow a person or his or with a semi-generic designation designate an American wine, it is TTB’s her successor in interest using one of conform to the requirements of the preference to go through rulemaking in the grandfathered names in the United producing country, and EU regulations order to solicit comments on the use of States before March 10, 2006, to would not allow a wine from Spain to proposed varietal names. However, continue using the name, provided that be called a ‘‘Burgundy,’’ ‘‘Chablis,’’ rulemaking takes time, and TTB does the name is only used on labels for wine ‘‘Sauterne’’ or ‘‘Rhine,’’ the proposed not wish to delay the use of newly bearing the brand name, or the brand rule would supersede ATF Ruling 73–5. approved grape varietal names on name and distinctive or fanciful name, Proposed § 4.175 defines a nongeneric American wine labels. Accordingly, it is if any, for which the applicable COLA designation as a name of geographic TTB’s practice to issue an was issued prior to the date of signature significance that has not been found by ‘‘administrative approval’’ for new grape of the EU Agreement. the Administrator to be generic or semi- variety names that meet the criteria set In accordance with the EU Agreement generic. The proposed regulation also forth in the regulations. An and the relevant changes in U.S. law, states that, ‘‘A nongeneric name of administrative approval is temporary in TTB has imposed restrictions on the use geographic significance may be deemed nature, and means that TTB will allow of the semi-generic names and the name to be the distinctive designation of a the use of the grape variety name as a Retsina. Although Retsina is a class of wine if the Administrator finds that it is type designation on a wine label wine that was not previously recognized known to the consumer and to the trade pending rulemaking. An administrative in the TTB regulations or in 26 U.S.C. as the designation of a specific wine of approval may be revoked as a result of 5388 as a semi-generic name, under the a particular place or region, subsequent rulemaking concerning the terms of the EU Agreement and 26 distinguishable from all other wines.’’ grape variety name. U.S.C. 5388, it is treated the same as the Other than these clarifying provisions, Current § 4.92 provides a list of semi-generic names. the changes in proposed § 4.175 are alternative grape variety names that may Under the provisions of the editorial in nature. be used on a temporary basis, in lieu of ‘‘grandfather’’ exception, any person or the prime name of the grape variety that his or her successor in interest may 7. Subpart J—American Grape Variety is shown in the list. These alternative continue to use a semi-generic name or Names grape variety names may be used for Retsina on a wine label, provided the Proposed subpart J of part 4 includes wine bottled before a specified date, semi-generic name or Retsina is used the list of approved names of American which varies from 1997 to 2012. The only on labels for wine bearing the same grape varietals, the list of alternate alternative grape variety names in the brand name, or the same brand name names of American grape varietals, and list for wine bottled prior to 1997 and and a distinctive or fanciful name, if the approval processes for grape varietal the names in the list for wine bottled any, that appear on a COLA issued prior names. prior to 1999 are not included in to March 10, 2006. The grandfather As previously mentioned, proposed proposed § 4.192. Though absent from clause is not available to wines § 4.157 provides the rules for using the the list in the regulations, the alternative originating in the EU. The proposed name of one or more grape varieties as names authorized for wines bottled amendments will implement these a type designation for a grape wine. prior to 1997 and 1999 will still be provisions in the part 4 labeling Proposed § 4.157(e) provides that the authorized. However, TTB no longer regulations for the first time. name of a grape variety may be used in believes it is necessary to include this

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transitional rule in the codified pseudocereals, and TTB also notes that label’’ is defined in current § 5.11 regulations. the FDA has proposed draft guidance generally as the principal display panel allowing the seeds of pseudocereals to that is most likely to be displayed, D. Proposed Changes Specific to 27 CFR be identified as ‘‘whole grains’’ on presented, shown, or examined under Part 5 (Distilled Spirits) labels (see 71 FR 8597, February 17, normal retail display conditions. In addition to the changes discussed 2006). Further, the definition states that ‘‘[t]he in section II B of this document that Finally, TTB proposes to define the principal display panel appearing on a apply to more than one commodity, term ‘‘oak barrel,’’ which is used with cylindrical surface is that 40 percent of TTB is proposing editorial and regard to the storage of certain bulk the circumference which is most likely substantive changes specific to the spirits. TTB and its predecessor to be displayed, presented, shown, or distilled spirits labeling regulations in agencies have traditionally considered a examined under normal and customary part 5. This section will not repeat the ‘‘new oak container,’’ as used in the conditions of display for retail sale.’’ changes already discussed in section II current regulations, to refer to a TTB believes that the information that B of this document. Accordingly, if a standard whiskey barrel of currently must appear together on the proposed change is not discussed in this approximately 50 gallons capacity. brand label (or ‘‘principal display section, please consult section II B. The Accordingly, TTB proposes to define an panel’’) is closely related information substantive changes that are unique to oak barrel as a ‘‘cylindrical oak drum of that, taken together, conveys important part 5 are described below, by subpart. approximately 50 gallons capacity used facts to consumers about the identity of to age bulk spirits.’’ However, TTB seeks the product. TTB is proposing, in 1. Subpart A—General Provisions comment on whether smaller barrels or proposed § 5.63(a), to allow this Proposed subpart A includes several non-cylindrical shaped barrels should mandatory information to appear sections that have general applicability be acceptable for storing distilled spirits anywhere on the labels, as long as it is to part 5, including a revised definitions where the standard of identity requires within the same field of vision, which section, a section that defines the storage in oak barrels. means a single side of a container territorial extent of the regulations, (which for a cylindrical container is 40 2. Subpart B—Certificates of Label sections that set forth to whom and to percent of the circumference) where all Approval and Certificates of Exemption which products the regulations in part pieces of information can be viewed of Label Approval, Subpart C— 5 apply, a section that identifies other simultaneously without the need to turn Alteration of Labels, Adding regulations that relate to part 5, and the container. TTB believes that Information to Containers, and sections addressing administrative items requiring that this information appear in Relabeling, and Subpart D—Label such as forms and delegations of the the same field of vision, rather than on Standards Administrator. the display panel ‘‘most likely to be Proposed § 5.1, which provides Proposed subparts B, C, and D are displayed, presented, shown, or definitions of terms used in part 5, has updated for clarity and contain examined’’ at retail, is a more objective some changes from the regulatory text substantive changes as described in and understandable standard, that appears in current § 5.10. In section II B of this preamble. The rules particularly as applied to cylindrical addition to the proposed amendments found in proposed §§ 5.42—5.44 bottles. This amendment also eliminates discussed above in section II B of this regarding relabeling incorporate the requirement that mandatory document, TTB proposes to modify the portions of, and would supersede, ATF information appear parallel to the base definition of ‘‘age’’ to simplify it and to Ruling 54–592, which deals with of the container. make clear that spirits are only aged relabeling of distilled spirits with labels Paragraph (b) of current § 5.32 when stored in or with oak. The wood with different trade names, and ATF specifies that mandatory information contact creates chemical changes in the Ruling 62–224, which deals with other than that listed in paragraph (a) spirits, which is the aging process. labeling by wholesalers. must appear either on the brand label or Thus, for example, spirits stored in oak on a back label, in effect allowing this 3. Subpart E—Mandatory Label barrels lined with paraffin are not information to appear anywhere on the Information ‘‘aged.’’ container. Paragraph (b) of the proposed Additionally, TTB proposes to add a Proposed subpart E of part 5 sets forth § 5.63 in effect makes no change in this definition of ‘‘American proof,’’ which the information that is required to requirement by providing that the cross references the definition of appear on a label and prescribes how mandatory information set forth in that ‘‘proof.’’ The term ‘‘American proof’’ is that information must appear on the paragraph must appear ‘‘on a label or used in some circumstances to clarify label. The current regulations governing labels anywhere on the container’’ of that the proof listed on a certificate mandatory label requirements are found each distilled spirits container. should be calculated using the in subpart D of part 5. Proposed subpart Also with respect to the mandatory standards in the part 5 regulations, not E is generally structured similarly to the information, TTB proposes to clarify the under another country’s standards. corresponding sections in the current existing requirement that, if the alcohol TTB proposes to amend the definition regulations. content is listed in terms of using of ‘‘distilled spirits’’ to codify its TTB is proposing to clarify where degrees of proof, it must appear in direct longstanding position that products mandatory information must appear on conjunction with the mandatory alcohol containing less than 0.5 percent alcohol a container. The proposed amendments content statement. The proposed rule by volume are not regulated as will have the effect of increasing provides that the statement of proof ‘‘distilled spirits’’ under the FAA Act. flexibility for placing such information must appear immediately adjacent to TTB also proposes to add a definition on a distilled spirits container. Current the mandatory alcohol content of ‘‘grain,’’ which would define the term § 5.32(a) requires that the following statement. to include cereal grains as well as the appear on the ‘‘brand label’’: The brand The proposed rule still provides that seeds of the pseudocereal grains: name, the class and type of the distilled the mandatory alcohol content amaranth, buckwheat, and quinoa. TTB spirits, the alcohol content, and, on statement must be stated on the label as has received a number of applications containers that do not meet a standard a percentage of alcohol by volume. The for labels for products using of fill, net contents. The term ‘‘brand proof statement may, but need not,

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appear on the label. In ATF Ruling 88– tolerance is larger than the previously Accordingly, proposed § 5.66(f) would 1, TTB’s predecessor agency clarified allowed 0.25 percent for high solids provide that the State of original that the proof must appear in direct content or for small bottles, we also distillation for certain whisky products conjunction only once on the label or in propose to eliminate the stepped must be shown on the label in at least an advertisement, specifically, in the tolerance scheme and provide for the one of the following ways: place where the alcohol by volume same tolerance for all distilled spirits. • By including a ‘‘distilled by’’ (or statement is serving as the mandatory TTB believes that this proposal would ‘‘distilled and bottled by’’ or any other alcohol content statement. Accordingly, allow greater flexibility and business phrase including the word ‘‘distilled’’) the proposed rule clarifies that efficiencies for bottlers. We note that statement as part of the mandatory name additional statements of proof need not while taxes on distilled spirits are be accompanied by the alcohol by generally determined on the basis of the and address statement, followed by a volume statement. labeled alcohol content of the product, single location. This means that a TTB also proposes in § 5.65(c) to we believe that the proposal does not principal place of business or a list with provide for an expanded tolerance for present risks to the revenue because multiple locations would not suffice; labeling of alcohol content. The current there likely will be both overproof and • By including the name of the State regulations in 27 CFR 5.37(b) provide a underproof bottles and there is no in which original distillation occurred tolerance for a drop in alcohol content economic incentive for intentionally immediately adjacent to the class or only, of 0.15 percent alcohol by volume overproofing bottles. We invite type designation (such as ‘‘Kentucky for most distilled spirits and of 0.25 comments on this issue. Bourbon whisky’’), as long as percent for spirits with a high solids The current regulations in 27 CFR 27 distillation and any required aging content or for spirits bottled in small CFR 5.36 allow for various statements as occurred in that State; or bottle sizes. The tolerance was part of the name and address. The • By including a separate statement, established to allow for variations in phrase ‘‘bottled by’’ is simple to alcohol content that occur due to losses understand—it may be used by the such as ‘‘Distilled in [name of State].’’ in alcohol content during the bottling bottler of the spirits. Similarly, the The TTB regulations set forth certain process. phrase ‘‘distilled by’’ may be used only rules for how age statements may appear Industry members have expressed by the original distiller of the distilled on labels. TTB proposes to update the concern that while improvements in spirits. rule, currently found in § 5.40(d), which analytical equipment have made measuring alcohol content more precise, Currently, section 5.36(a)(4) allows a states that age, maturity, or similar the volatility of ethyl alcohol makes it variety of terms, as appropriate, to be statements may not appear on neutral challenging during bottling to control used by a rectifier of distilled spirits, spirits (except for grain spirits), gin, alcohol content within the narrow including ‘‘blended by,’’ ‘‘made by,’’ liqueurs, cordials, cocktails, highballs, parameters that are currently ‘‘prepared by,’’ ‘‘manufactured by,’’ or bitters, flavored brandy, flavored gin, authorized. For example, many distilled ‘‘produced by.’’ Because there is no flavored rum, flavored vodka, flavored spirits products have a minimum longer a rectification tax on distilled whisky, and specialties, because such bottling alcohol content of 40 percent spirits, and thus these terms have lost statements are misleading. TTB has seen alcohol by volume. In some cases, their significance under the IRC, some recent growth in the number of distilled distillers may target their alcohol industry members and consumers are spirits products, such as gin, being content slightly higher than 40 percent, confused as to when the use of those stored in oak containers. However, the terms is appropriate. TTB proposes to expecting evaporation of alcohol during prohibition in the current regulations clarify in proposed § 5.66(b)(2) the the bottling process. However, in some means that a producer cannot use age meaning of those terms. For example, instances, the alcohol content does not statements to inform the public how drop to the desired 40 percent during the term ‘‘produced by,’’ when applied to distilled spirits, does not refer to the long its product has been stored in oak the bottling process. Current TTB containers, and TTB has approved regulations would not allow a product original distillation of the spirits, but instead indicates a processing operation labels using terms such as ‘‘finished’’ or with, for example, an actual alcohol ‘‘rested’’ for these types of products. content of 40.15 percent alcohol by (formerly known as rectification) that TTB believes that consumers should be volume to be labeled with an alcohol involves a change in the class or type of content of 40 percent alcohol by the product through the addition of able to make their own determinations volume. flavors or some other processing on how the aging would affect the The proposed rule amends the alcohol activity. TTB solicits comments on product, and that age statements would content regulations in part 5 to allow for whether the proposed definitions of provide truthful information to an expanded alcohol content tolerance. these terms are consistent with trade consumers. Accordingly, TTB proposes TTB proposes to expand the alcohol and consumer understanding. to allow age statements on all spirits content tolerance to 0.3 percent alcohol TTB has received several inquiries except for neutral spirits (other than by volume above or below the labeled about its existing regulations on labeling grain spirits, which may contain an age alcohol content. certain whisky products with a State statement). The revision appears at TTB also proposes to make a similar where distillation occurs. Current proposed § 5.74(e). Proposed § 5.74 amendment to the alcohol content § 5.36(d) require the State of distillation incorporates and supersedes ATF regulations found in 27 CFR 19.356. The to be listed on the label if it is not Ruling 93–3, which exempts grappa regulations in part 19 apply to the included in the mandatory name and from the mandatory age statement for operations of distilled spirits plants. address statement. However, because brandies aged less than four years. Section 19.356 sets forth tolerances for the name and address statement may be Finally, TTB proposes to supersede alcohol content and fill for bottling satisfied with a bottling statement, there Revenue Ruling 69–58, which deals operations, and TTB proposes to expand is no way to know, simply by reviewing with rules for age statements that have the alcohol content tolerances in this a proposed label, whether distillation been incorporated in the regulations. section to mirror those in the proposed actually occurred in the same State as § 5.65(c). Because this alcohol content the bottling location.

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4. Subparts F, G and H––Restricted and ‘‘bond,’’ ‘‘bonded,’’ or ‘‘aged in bond,’’ to meet a product’s standard of identity Prohibited Labeling Practices, and or other phrases containing these or would be considered the first Labeling Practices That Are Prohibited synonymous terms. The use of these distillation, TTB has not set forth a if They Are Misleading terms was originally restricted to certain policy on how additional distillations As described in section II B of this products under the Bottled in Bond Act may be claimed or counted where an document, the current regulations set of 1897 (29 Stat. 626). The Bottled in industry member intends to use a forth the prohibited labeling practices in Bond Act was intended to provide multiple distillation claim. TTB is a single section, § 5.42. In order to make standards for certain spirits that would proposing in this rulemaking, at it easier to find the relevant regulation inform consumers that the spirits were proposed § 5.89, to define a distillation and to improve readability, TTB not adulterated. Treasury Department as a single run through a pot still or one officers monitored bonded distilled run through a single distillation column proposes to separate these practices into spirits plants. The Bottled in Bond Act of a column (reflux) still. TTB believes three subparts––one for practices for was repealed by the Distilled Spirits Tax that this definition is consistent with which there are certain rules, one for Revision Act of 1979 (see title VIII, what consumers understand the terms practices that are prohibited in all subtitle A, Public Law 96–39, 93 Stat. to mean and also believes that this instances, and one for practices that are 273). TTB’s predecessor agency, ATF, meaning most fully informs consumers prohibited only if misleading. decided to maintain the rules as to the identity and quality of the In addition to changes in provisions concerning ‘‘bottled in bond’’ and distilled spirits product. TTB that apply to all three of the similar terms, because consumers specifically seeks comment on this commodities, which are discussed in continued to place value on these terms proposed meaning of distillation and section II B of this preamble, proposed on labels. Proposed § 5.88 maintains the proposed method for counting multiple § 5.87 prescribes rules for the use of the requirements for the use of ‘‘bottled in distillations. terms ‘‘barrel proof,’’ ‘‘cask strength,’’ bond’’ and similar terms and Proposed § 5.90 sets forth rules for the ‘‘original proof,’’ ‘‘original barrel proof,’’ reorganizes them for clarity. Imported use on distilled spirits labels of terms ‘‘original cask strength,’’ and ‘‘entry spirits may use ‘‘bottled in bond’’ and related to Scotland. Such rules currently proof’’ on distilled spirits labels. The similar terms on labels when the appear only in the regulatory sections proposed text incorporates the holding, imported spirits are produced under the related to product standards of identity set forth in ATF Ruling 79–9 that the same rules that would apply to domestic and class and type, at current terms ‘‘original proof,’’ ‘‘original barrel spirits. §§ 5.22(k)(4) and 5.35, respectively. The proof,’’ and ‘‘entry proof,’’ when In order to maintain parity between proposed provision retains the current appearing on a distilled spirits product whisky that is aged and vodka and gin, rule set forth at current § 5.22(k)(4), that label, indicate that the proof of the which do not undergo traditional aging, the words ‘‘Scotch,’’ ‘‘Scots,’’ spirits entered into the barrel and the vodka and gin are required to be stored ‘‘Highland,’’ or ‘‘Highlands’’ and similar proof of the bottled spirits are the same. in wooden containers in order to use words connoting, indicating, or The ruling further held that the term ‘‘bond’’ or similar terms, but the wood commonly associated with, Scotland ‘‘barrel proof’’ appearing on a distilled containers must be coated or lined with may be used only on a product wholly spirits label indicates that the bottling paraffin or another substance to prevent produced in Scotland, but moves this proof is not more than two degrees the vodka or gin from coming into rule to the provisions on restricted lower than the proof established at the contact with the wood. TTB seeks labeling practices in the new subpart F. time the spirits were gauged for tax comment on whether it should However, regardless of where the determination. The proposed eliminate the requirement that bonded finished products are produced, the regulations update the description of the vodka or gin be stored in wooden term ‘‘Scotch Whisky’’ would not be term ‘‘barrel proof’’ to take into account containers. TTB rarely sees ‘‘bonded’’ prohibited from appearing on the label changes in the operation of distilled vodka or gin; ‘‘bond’’ and similar terms in the statement of composition for spirits plants because of the Distilled are most frequently used on labels of distilled spirits specialty products that Spirits Tax Revision Act of 1979. The whisky. Commenters may also wish to use Scotch Whisky or in the statement reference to the time of tax opine on whether TTB should maintain of composition on the label of Flavored determination is no longer the any special standards for the use of Scotch Whisky. (However, even though applicable standard under the current ‘‘bonded’’ or similar terms, since all the finished product may be produced tax determination system. Since the domestic distilled spirits products are anywhere, the Scotch Whisky term ‘‘barrel proof’’ is intended to now bottled on bonded premises. component must continue to be made in indicate that the spirit is approximately In addition, proposed § 5.89 would set Scotland under the rules of the United the same proof as when it is dumped forth new rules for the use of multiple Kingdom.) In addition, proposed from the barrel, the proposed distillation claims, such as ‘‘double § 5.90(b) clarifies (in accordance with regulations state that the term may be distilled’’ or ‘‘triple distilled.’’ Current current regulations as well as proposed used on a label when the bottling regulations, at § 5.42(b)(6), provide that § 5.127) that phrases related to alcohol content (proof) of distilled such claims are allowable if they are government supervision may be allowed spirits is not more than two degrees of truthful statements of fact and further only if required or specifically proof lower than the proof of the spirit provide that the terms ‘‘double authorized by the regulations of the when the spirit was dumped from the distilled’’ or ‘‘triple distilled’’ shall not United Kingdom, and supersedes barrel. TTB notes that it rarely sees such be permitted on labels of distilled spirits Revenue Ruling 61–15, which applied terms on distilled spirits labels and if the second or third distillation is ‘‘a that rule to specific language on labels specifically seeks comments on whether necessary process for production of the of Scotch whisky bottled in the United they still have relevance and provide product.’’ TTB is regularly asked for States. If this proposed provision is meaningful information to the consumer guidance on the meaning of this included in the final rule, the 1961 and whether TTB should regulate their regulation and responds on a case-by- ruling would be superseded in its use on labels. case basis depending on the relevant entirety. Proposed § 5.88 sets forth rules for the specific facts. Although TTB policy is Proposed § 5.91 sets forth rules for the use of the terms ‘‘bottled in bond,’’ clear that the distillation steps necessary use of the term ‘‘pure’’ on distilled

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spirits labels, containers, and packaging. longstanding policy, TTB proposes to grain spirits, were stored in wood This rule currently appears in clarify, in § 5.141(b)(3), that such a barrels and then labeled as neutral § 5.42(b)(5) and provides that the term product may be designated with any spirits or vodka. Finally, the proposed ‘‘pure’’ may not be used unless it is a class designation to which the product regulations include allowable truthful representation about a conforms. For example, a vodka with designations for neutral spirits labels. particular ingredient, it is part of the added natural orange flavor and sugar TTB also is proposing to amend the name of a permittee or retailer for whom bottled at 45 percent alcohol by volume standard of identity for vodka, a type of the spirits are bottled, or it is part of the may meet the standard of identity for a neutral spirit, to codify the holdings in name of the permittee who bottled the flavored spirit or for a liqueur. several past rulings: Ruling 55–552, spirits. Accordingly, the product may be which holds that vodka may not be designated as ‘‘orange flavored vodka’’ stored in wood; Ruling 76–3, which 5. Subpart I—Standards of Identity for or ‘‘orange liqueur’’ at the option of the explains that vodka treated with Distilled Spirits bottler or importer. Under current charcoal may be labeled as ‘‘charcoal TTB is proposing amendments to the policy, TTB would not allow a product filtered’’; and Ruling 56–98 and Ruling standards of identity for distilled spirits to be designated on a single label as 97–1, which allow treatment with 2 that are intended to clarify the classes both ‘‘orange flavored vodka’’ and grams per liter of sugar and trace and types of distilled spirits. TTB also ‘‘orange liqueur,’’ because TTB views it amounts (1 gram per million) of citric is proposing to insert charts into the as misleading for a label to bear two acid and sugar. In addition, TTB is regulatory text to make the relationship different class designations. TTB seeks specifically seeking comment on between classes and types, and the comments on whether the TTB whether the requirement that vodka be standards for each, easier to understand regulations should permit a distilled without distinctive character, aroma, and apply. Throughout the standards of spirits label to bear more than one class taste, or color should be retained and, if identity, TTB proposes to identify designation if the product conforms to this requirement is no longer alcohol content in terms of alcohol by the standards of identity for more than appropriate, what the appropriate volume as opposed to degrees of proof. one class. standards should be for distinguishing TTB proposes to clarify, in § 5.141, The following proposed provisions vodka from other neutral spirits. that the standards of identity apply to a relate to the standards of identity for Proposed § 5.143 sets forth the finished product without regard to distilled spirits products: standards for whiskies. TTB proposes to whether an intermediate product is used Proposed § 5.142 sets forth the clarify that the word whisky may be in the manufacturing process. This standards for neutral spirits. Current spelled ‘‘whisky’’ or ‘‘whiskey.’’ TTB means that the intermediate product is § 5.22(a) states that neutral spirits are also proposes to require that, where a treated as a mixture for the convenience distilled spirits produced from any whisky meets the standard for one of the of the manufacturer, but determinations material at or above 190° proof and, if types of whiskies, it must be designated as to the classification and labeling of bottled, bottled at not less than 80ß with that type name, except that the product will be made without regard proof. Further, ‘‘vodka’’ is a neutral Tennessee Whisky may be labeled as to the fact that the elements of the spirit so distilled, or so treated after Tennessee Whisky even if it meets the intermediate product were first mixed distillation with charcoal or other standards for one of the type together in the intermediate product. In materials, as to be without distinctive designations. Currently, TTB allows the the case of distilled spirits specialty character, aroma, taste, or color. term ‘‘Tennessee Whisky’’ to appear on products, TTB currently treats Proposed § 5.142 would clarify several labels, even if the product meets a more intermediate products as ‘‘natural factors related to designating a neutral specific standard of identity, such as for flavoring materials’’ when they are spirits product, factors that typically bourbon whisky. blended into a product, for the purpose have been taken into account on a case- In the current regulations, when a of disclosure as part of a truthful and by-case basis. First, TTB is proposing to whisky meets the standard for a type of adequate statement of composition. TTB provide that the source material of the whisky, it is unclear whether the label has seen changes in the alcohol neutral spirits may be specifically must use that type designation or may beverage industry and in various included in the designation on the label use the general class ‘‘whisky’’ on the formulas and believes that treating of the product. Thus, the bottler would label. TTB believes that consumers intermediate products as natural have the option of labeling a product as expect that the type designation will flavoring materials does not provide ‘‘Apple Neutral Spirits’’ (in addition to appear on the container when it applies. adequate information to consumers, as ‘‘neutral spirits distilled from apples’’ as Additionally, historical documents required by the FAA Act. Accordingly, the required commodity statement) or indicate that TTB’s predecessor agencies TTB proposes to clarify that blending ‘‘Grape Vodka,’’ (in addition to ‘‘vodka classified whiskies with the type components such as distilled spirits and distilled from fruit’’ as the required designation that applied, and required wines together first in an ‘‘intermediate commodity statement) as long as such that type to be the label designation. For product’’ is the same as adding the statements accurately describe the example, in January of 1937, the Federal ingredients separately for purposes of source materials. Alcohol Administration stated that determining the standard of identity of TTB also is proposing to codify the ‘‘Where a product conforms to the the finished product. Additionally, TTB holding set forth in Revenue Ruling 55– standard of identity for ‘Straight proposes to change its policy with 740, that neutral spirits, other than grain Bourbon Whiskey’ it must be so regard to statements of composition for spirits, that are stored in wood barrels designated and it may not be designated specialties to require the disclosure of become specialty products and must be simply as ‘Whiskey.’’’ See FA–91, ‘‘A elements of the intermediate product labeled in accordance with the Digest of Interpretations of Regulations (including spirits, wines, flavoring appropriate rules for such products set No. 5 Relating to Labeling and materials, or other components) as part forth in proposed § 5.156. Because Advertising of Distilled Spirits,’’ p. 5. of the statement of composition. storage in wood barrels renders the In order to make the types of whiskies Some distilled spirits products may spirits not neutral, TTB’s predecessor easier to understand, TTB proposes conform to the standards of identity for agency determined that consumers inserting a chart in the regulations that more than one class. Consistent with would be misled if spirits, other than would set forth the types of whisky that

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are not distinctive products of other improve understanding of the TTB 2007–5, certain absinthe-type products countries, the source material from labeling regulations. are now allowed in the U.S. market, but which the whisky may be produced, Proposed § 5.144 generally restates are generally classified as distilled whether storage is required, the proof at the current standards for gin, but, in spirits specialty products or liqueurs (if which the whisky may be stored, and order to make the use of other aromatics they meet the standard of identity for a whether neutral spirits and harmless, optional, would change the requirement liqueur). Under current TTB policy, the coloring, flavoring, or blending that gin be made with juniper berries word ‘‘Absinthe’’ may not stand alone materials may be used. Among other and other aromatics. Also, TTB on the label; therefore, labels use multi- things, the proposed rule will codify in proposes to remove the designation word names that include the word the regulations for the first time TTB’s ‘‘Geneva gin (Hollands gin)’’ from the ‘‘Absinthe’’ (such as ‘‘Absinthe Vert’’ or current policy, as set forth in the list of ‘‘distilled gin’’ designations ‘‘Absinthe Superieure’’). TTB believes Distilled Spirits Beverage Alcohol because that designation usually refers that consumers understand what Manual (TTB P 5110.7), that coloring, to gin that has been stored in wooden absinthe is and that it is appropriate to flavoring, or blending materials may not containers, which is not necessarily set out a standard of identity for be added to products designated as synonymous with the description absinthe. The proposed standard ‘‘bourbon whisky.’’ ‘‘distilled gin.’’ reminds the reader that the products TTB also proposes to provide for a Proposed § 5.145 sets out the must be thujone-free under FDA new type designation of ‘‘white whisky standards for brandy, with minor regulations. Based on current limits of or unaged whisky.’’ TTB has seen a clarifying changes. One of the proposed detection, a product is considered marked increase in the number of amendments would allow the use of the ‘‘thujone-free’’ if it contains less than 10 products on the market that are distilled terms ‘‘Slivovitz’’ and ‘‘Kirschwasser’’ parts per million of thujone. Finally, as optional designations for plum from grain but are unaged or that are TTB proposes to supersede Industry brandy and cherry brandy, respectively. aged for very short periods of time. Circular 2007–5 in its entirety, without Additionally, TTB proposes to Under current regulations, unaged incorporating the requirement that all incorporate Armagnac, Brandy de Jerez, products would not be eligible for a wormwood-containing products and Calvados into the regulations as whisky designation (other than corn undergo analysis by TTB’s laboratory types of brandy. These products are whisky) and would have to be labeled before approval. TTB will verify distinctive products of France, Spain, with a distinctive or fanciful name, compliance with FDA limitations on and France, respectively, and they are along with a statement of composition. thujone through marketplace review and recognized by TTB under current In order to provide guidance for these distilled spirits plant investigations, policy. products, TTB proposes that products where necessary. Proposed § 5.148 is a new section that Proposed § 5.150 sets out the that are either unaged (so they are provides for a class called ‘‘agave standards for cordials and liqueurs. colorless) or aged and then filtered to spirits.’’ Currently, spirits that are Among other changes, TTB proposes to remove color should be designated as distilled from agave are considered incorporate into this section the holding ‘‘white whisky’’ or ‘‘unaged whisky,’’ distilled spirits specialties, and the in Revenue Ruling 61–71, which respectively. This proposal represents a labels of the products must contain a prohibits the terms ‘‘distilled,’’ change in policy, because currently all statement of composition, such as ‘‘compound,’’ or ‘‘straight’’ from whiskies (except corn whisky) must be ‘‘Spirits Distilled from Agave.’’ Because appearing on labels for cordials and aged, although there is no minimum TTB’s standards of identity are generally liqueurs. These terms imply original time requirement for such aging. TTB distinguished by agricultural distillation; thus, they are deemed to be believes that currently some distillers commodity, TTB believes it would be misleading on labels for cordials and may be using a barrel for a very short useful for consumers and for industry liqueurs. aging process solely for the purpose of members if TTB created a class of spirits Certain cordials or liqueurs may be meeting the requirement to age for a for spirits that are distilled from agave. designated with a name known to minimal time. Consequently, TTB is TTB proposes that the mash for agave consumers as referring to a cordial or proposing the new type designation of spirits be comprised of at least 51 liqueur and therefore need not use the ‘‘white whisky or unaged whisky’’ and percent agave and that it may contain word ‘‘cordial’’ or ‘‘liqueur’’ as part of specifically requests comments on this up to 49 percent sugar (weight before their designation. Thus, pursuant to new type and its standards. the addition of water). As proposed, TTB’s Beverage Alcohol Manual (TTB P In addition, TTB proposes to maintain Tequila, which currently appears as a 5110.7), several cordials and liqueurs— the definitions for Scotch Whisky, class of distilled spirits in the TTB specifically, Kummel, Ouzo, Anise, Canadian Whisky, and Irish Whisky regulations and Mezcal, which does not Anisette, Sambuca, Peppermint without change, but seeks comment on currently appear in the TTB regulations Schnapps, Triple Sec, Curac¸ao, whether these standards should be but which is protected under the North Goldwasser, and Cre`me de clarified to indicate that certain American Free Trade Agreement, would [predominant flavor]—currently may be standards for these types may differ be types of agave spirits produced in designated by those names on the labels from U.S. standards for whisky. For Mexico in accordance with the laws and of those products. TTB proposes to example, Scotch Whisky is whisky regulations of Mexico. This would not codify this policy by adding these produced in Scotland in accordance require a change of labels of Tequila or names as type designations under with United Kingdom laws and Mezcal because these type designations proposed § 5.150. regulations, which do not require that may appear alone on the label without Proposed § 5.151 would establish whisky be aged in new charred oak the class name ‘‘agave spirits.’’ ‘‘flavored spirits’’ as a revised and barrels. TTB policy is to allow whisky Proposed § 5.149 sets forth a new expanded class of distilled spirits labeled as Scotch whisky to be standard of identity for Absinthe (or consisting of spirits conforming to one produced under United Kingdom Absinth). Absinthe products are of the standards of identity (the ‘‘base standards, and TTB seeks comment on distilled spirits products produced with spirits’’) to which have been added whether, and what, additional herbs, including wormwood, fennel, nonbeverage flavors, wine, or clarifications in the regulations would and anise. Under Industry Circular nonalcoholic natural flavoring

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materials, with or without the addition spirits known as ‘‘diluted spirits.’’ This Pursuant to Article 2.13.2 of the of sugar, and bottled at not less than 30 applies to products that would United States-Korea Free Trade percent alcohol by volume (60 proof). otherwise meet one of the class or type Agreement, the United States agreed to This is a clarification of current TTB designations specified in subpart I recognize Andong Soju as a distinctive policy, which is that you may not add except that it does not meet the product of the Republic of Korea. See additional spirits to a base spirit in a minimum alcohol content, usually TTB Ruling 2012–3. Accordingly, TTB flavored spirits product, even if the because of reduction of proof through is proposing to add Andong Soju to the additional spirits are mixed into an the addition of water. Although the list of geographic names that have not intermediate product. ruling states that the word ‘‘diluted’’ become generic and that may not be The TTB regulations currently list must be readily legible and as used on distilled spirits made in any flavored brandy, flavored gin, flavored conspicuous as the statement of class to place outside the particular place or rum, flavored vodka, and flavored which it refers and in no case smaller region indicated in the name. TTB is whisky as the class designations under than 8-point Gothic caps (except on proposing to supersede TTB Ruling Class 9. Other types or classes of small bottles), TTB proposes to require 2012–3. distilled spirits that are flavored that the word ‘‘diluted’’ appear in In addition, TTB proposes to list currently are treated as distilled spirits readily legible type at least half the size Habanero, Sambuca, and Goldwasser as specialty products and the labels for of the class and type designation to a category of designations that have not such products must contain a statement which it refers. For example, but for the become generic, and could only be used of composition. While TTB allows for fact that a product is 70 proof, it would on products produced outside of the any spirit to appear as part of a truthful be eligible to be designated as ‘‘Vodka.’’ places indicated by the names if the statement of composition, TTB does not Instead it must be designated as label contains a phrase clearly believe that consumers perceive a ‘‘Diluted Vodka’’. indicating the place of production. distinction between, for example Certain geographical designations Examples of this usage include ‘‘Orange Flavored Tequila’’—which is may be used on distilled spirits as, or as ‘‘American Sambuca’’ and ‘‘Sambuca— how a flavored spirit would be part of, the designation on the label. In Product of the United States.’’ This designated under the proposed rule— proposed § 5.154, TTB proposes to proposal is not intended to change and ‘‘Tequila with Orange Flavor’’— change the rules for geographical policy; current regulations in § 5.22(l)(2) which is how the statement of designations currently found in § 5.22(k) provide Habanero as an example of a composition would appear for a and (l). Specifically, TTB proposes to name for distilled spirits that are a distilled spirits specialty product. TTB provide that geographical names that are distinctive product of a particular place, therefore believes it should allow any not generic may be used on products and the Distilled Spirits Beverage Alcohol Manual (TTB P 5110.7) type of base spirit to be flavored in made outside of the place indicated by accordance with the flavored spirits recognizes Sambuca and Goldwasser as the name, if TTB determines that the standard instead of just brandy, gin, distinctive designations. TTB solicits name represents a type of distilled rum, vodka, and whisky, as permitted comments addressing whether or not spirits and if the designation includes a by the current regulations. Accordingly, these terms should still be recognized as qualifier such as ‘‘type’’ or ‘‘style’’ or a proposed § 5.151 provides a class of being distinctive of a particular statement indicating the true place of flavored spirits that would allow any geographical origin. production. base spirit to be flavored when made in Under the current § 5.35(a), products ´ accordance with the standards of For example, Ojen is a town in Spain, that do not meet the definition of one identity set forth in the regulation. TTB and ‘‘Aguardiente de Oje´n’’ is a distilled of the specified classes or types of proposes to maintain a minimum spirits product associated with Spain. distilled spirits must be designated in alcohol content at bottling of 30 percent Thus, the current and proposed accordance with trade and consumer (60° proof) for this revised and regulations provide that ‘‘Ojen’’ is an understanding or, if no such expanded class. Flavored spirits may example of a distinctive type of distilled understanding exists, by a distinctive or contain added wine. TTB proposes to spirits with a geographical name that fanciful name followed by a truthful and maintain the requirement that wine has not become generic. If Ojen were adequate statement of composition. 1 1 made in the United States, it could be content above 2 ⁄2 percent (or 12 ⁄2 Proposed § 5.156 sets forth a new percent for brandy) must be disclosed designated as ‘‘Ojen type’’ or ‘‘American specific designation for a class of spirits on a label. Ojen’’ or with another similar phrase. called ‘‘distilled spirits specialty One new provision that TTB TTB also proposes to list specific products.’’ By setting forth this new addresses in the proposed text regarding products that are associated with a class, TTB intends to clarify the standards of identity is the use of the particular place that have become treatment of distilled spirits specialty term ‘‘diluted.’’ As set forth in ATF generic. These products could be products and the labeling requirements Ruling 75–32, TTB currently requires manufactured in any place, and the that apply to such products. Products that distilled spirits bottled at below the label would not be required to bear a within this class are not required to be specified alcohol content for that qualifier such as ‘‘type’’ or ‘‘style’’ or labeled with the designation ‘‘distilled particular class be designated on the any other dispelling statement. An spirits specialty product.’’ Instead, the label as ‘‘diluted’’ in direct conjunction example of a name that continues to be distinctive or fanciful name together with the statement of class and type to considered generic is ‘‘Aquavit.’’ with the statement of composition acts which it refers. For example, under the Although this name was traditionally as the product designation on the label. standard of identity for vodka set forth associated with the Scandinavian This classification would not make at current § 5.22(a), vodka must be countries, TTB believes that by usage any substantive change except for bottled at ‘‘not less than 80 proof.’’ As and common knowledge, this name has labeling requirements for cocktails, a result, a vodka bottled at 60 proof lost its geographical significance to the highballs, and similar specialty must bear the statement ‘‘diluted extent that it has become generic. Thus, products. The proposal would eliminate vodka’’ on the label. TTB proposes, in TTB proposes to list Aquavit, along with the rule allowing for a limited statement § 5.153, to incorporate this policy into Zubrovka, Arrack, Kummel, Amaretto, of composition consisting of only the the regulations by establishing a class of and Ouzo, as examples in this category. spirits used in the manufacture of such

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products. Over the years, TTB has seen 7. Subpart K—Standards of Fill and regulations that relate to part 7, and an increase of cocktails recognized in Authorized Container Sizes sections addressing administrative items bartenders’ recipe books as the industry Distilled spirits containers must be such as forms and delegations of the continued to innovate. Consumers are filled with certain specified amounts of Administrator. a. Definitions. Proposed § 7.1, which not fully informed when a label has the product. Additionally, the current covers definitions of terms used in part only a cocktail name and the component regulations prescribe a maximum 7, is largely consistent with the current spirit(s) because of the vast array of headspace for bottles so that consumers regulatory text that appears in § 7.10, cocktails. Accordingly, TTB proposes to are not misled with regard to the require a full statement of composition with some amendments in addition to quantity of spirits in the bottle. Over the those discussed in section II B of this on such specialty products, and years, alcohol beverage producers have proposes to clarify that a cocktail name preamble (relating to parts 4, 5 and 7). greatly increased the number of brands The proposed text adds definitions for may be used as the distinctive or and packages in the marketplace. TTB the terms ‘‘keg collar’’ and ‘‘tap cover’’ fanciful name on a distilled spirits believes that if a product is bottled in a consistent with a proposed amendment, specialty product. container that conforms to a standard of discussed later in this document, to Certain ingredients or processes can fill and is clearly marked with the net allow mandatory label information to change the class and type of a distilled contents, the consumer is provided with appear on keg collars and tap covers, spirit. Proposed § 5.155 sets forth the sufficient information as to the amount subject to certain conditions. The rule for alteration of class and type as of spirits in the bottle. proposed text amends the definition of well as exceptions to the general rule Currently, § 5.46(b) imposes a the term ‘‘bottler’’ and removes the regarding alteration. Much of this headspace requirement that applies to definition of ‘‘packer,’’ consistent with section is found in the current 27 CFR standard liquor bottles, and § 5.46(c) proposed amendments that would 5.23, but TTB proposes to add wine, provides design requirements for remove any distinction in name and when used in Canadian whisky in standard liquor bottles. Pursuant to address statements between ‘‘bottling’’ accordance with Canadian law, as an § 5.46(d), distinctive liquor bottles may in containers of a capacity of one gallon be exempted from these requirements. A exception to the general rule to make it or less and ‘‘packing’’ in containers in bottler or importer who intends to use clear that Canadian producers may add excess of one gallon. a distinctive liquor bottle is currently more than 2 and one half of one percent The proposed text retains the current required to apply for and obtain wine without altering the class from definition of ‘‘malt beverage,’’ which is authorization for such use. Proposed whisky. TTB has also had a number of based on the statutory definition set § 5.202 incorporates these provision forth in the FAA Act at 27 U.S.C. requests from industry members for without substantive change. 211(a)(7), and updates the cross guidance on labeling products that are TTB seeks comments on whether it reference to standards applying to the stored in two different types of barrels. should eliminate the current headspace use of processing methods and flavors. For example, whisky must be stored in and certain design requirements. TTB Prior to the issuance of TTB Ruling oak containers, in accordance with the believes that eliminating the application 2008–3, TTB and its predecessor agency standard of identity. When a producer requirement for distinctive liquor had provided guidance on the minimum stores the whisky in oak containers and bottles would create efficiencies for both quantities of malted barley and hops then stores it in a different type of TTB and industry members by reducing required to be used in the production of container, such as a maple barrel, the application and review requirements. malt beverages. In 1994, the Bureau of spirit becomes a distilled spirits However, TTB is specifically interested Alcohol, Tobacco and Firearms (ATF) specialty product and must be labeled in comments regarding any deleterious issued ATF Compliance Matters 94–1, with a statement of composition, such effect that eliminating the requirement which provided that beers fermented as ‘‘Bourbon Whisky finished in maple might have on consumers. from at least 25 percent malted barley barrels.’’ TTB proposes, in § 5.155(c), to (calculated as the percentage of malt, by add this requirement to the regulations. E. Proposed Changes Specific to 27 CFR weight, compared to the total dry weight Part 7 (Malt Beverages) Proposed § 5.166 sets forth the rules of all ingredients contributing for the statement of composition as In addition to the changes discussed fermentable extract to the base product) discussed in section II B of this above that apply to all commodities, and made with at least 71⁄2 pounds of document. TTB is proposing additional editorial hops (or the equivalent thereof in hop and substantive changes specific to the extracts or hop oils) per 100 barrels 6. Subpart J—Formulas malt beverage labeling regulations in 27 were ‘‘malt beverages’’ under the FAA CFR part 7. This section will not repeat Act. The current regulations in subpart C the changes already discussed in section In TTB Ruling 2008–3, TTB of part 5 set forth requirements for II B of this preamble. Accordingly, if a announced that it was reconsidering formulas for distilled spirits. In the proposed change is not discussed in this this prior guidance, based on the fact present rulemaking, TTB proposes to section, please consult section II B. The that neither the FAA Act nor the maintain the formula requirements with substantive changes that are unique to implementing regulations in 27 CFR minor changes to reflect current policy part 7 are described below, by subpart. part 7 prescribed minimum standards as set forth in TTB Industry Circular for the amount of malted barley used in 2007–4. However, TTB believes there 1. Subpart A—General Provisions production of a malt beverage. The may be formula requirements that no Proposed subpart A includes several ruling also noted that TTB had longer serve a labeling purpose. TTB sections that have general applicability determined that a beer containing a seeks specific comments on whether to part 7, including a revised definitions much lower amount of malted barley certain formula requirements should be section, a section that defines the (one percent of the total dry weight of eliminated and the rationale for such a territorial extent of the regulations, all ingredients contributing fermentable change. TTB may address these issues sections that set forth to whom and extract to the product) conformed to the in the final rule or in a separate which products the regulations in part definition of a ‘‘malt beverage.’’ The rulemaking document. 7 apply, a section that identifies other ruling stated that brewers and importers

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should contact TTB’s Advertising, out the longstanding Bureau IRC provides that the product must contain Labeling, and Formulation Division interpretation of what is ‘‘similar’’ State one-half of one percent or more of alcohol by with questions as to whether a law, by stating that if the label in volume, whereas there is no minimum particular product falls within the question does not violate the laws of the alcohol content for a ‘‘malt beverage’’ under the FAA Act. definition of a ‘‘malt beverage’’ and State or States into which the malt Accordingly, a fermented beverage that is therefore is subject to the COLA and beverages are being shipped, it does not brewed from a substitute for malt (such as other requirements of the FAA Act. violate part 7. Finally, paragraph (a)(3) rice or corn) but without any malted barley In this rulemaking document, TTB is clarifies that the regulations in part 7 do may constitute a ‘‘beer’’ under the IRC but not proposing to set forth any minimum not apply to domestically bottled malt does not fall within the definition of a ’’ malt standards for the quantity of malted beverages that are not and will not be beverage’’ under the FAA Act. Similarly, a barley or hops used in the production of sold or shipped, or delivered for sale or fermented beverage that is not brewed with malt beverages. TTB solicits comments shipment, or otherwise introduced in hops may fall within the IRC definition of from all interested parties on whether interstate or foreign commerce. ‘‘beer’’ but also falls outside of the definition the regulations in part 7 should address of a ‘‘malt beverage’’ under the FAA Act. c. Ingredients and processes. It should be noted that sake´ and similar this issue. Proposed § 7.5 is derived from current b. Prohibitions and jurisdictional products are included within the definition § 7.11, and no substantive changes have of ‘‘beer’’ under the IRC. See 26 U.S.C. limits of the FAA Act. Proposed § 7.3, been made. It should be noted that the 5052(a). However, sake´ is also included which sets forth the general current regulation authorizes the use of within the definition of a wine under the requirements and prohibitions under 27 ‘‘flavors and other nonbeverage FAA Act, which, among other things, covers U.S.C. 205(e), repeats the essential ingredients containing alcohol’’ in the only wines with an alcohol content of at least elements of the prohibitions found in production of malt beverages, subject to seven percent alcohol by volume. See 27 current § 7.20 and the misbranding certain limitations. In the proposed U.S.C. 211(a)(6). Thus, sake´ and similar provisions found in current § 7.21. products with an alcohol content of at least regulation, the word ‘‘nonbeverage’’ has seven percent alcohol by volume are subject Because the term ‘‘misbranding’’ is not been inserted in front of the term used consistently in current part 7, to the labeling and other requirements of the ‘‘flavors,’’ simply to clarify that the FAA Act. proposed § 7.3 would replace that term regulation is intended to authorize only The ruling thus held that in cases where with the requirement that malt beverage the use of nonbeverage flavors a brewery product (other than sake´ and containers be labeled in accordance containing alcohol. with the regulations in part 7. d. Brewery products that are not malt similar products) failed to meet the Proposed § 7.4 sets forth the beverages. For the first time, TTB is definition of a ‘‘malt beverage’’ under jurisdictional limits found in 27 U.S.C. proposing to include regulations in part the FAA Act, the product will be subject 205. As referenced earlier, the first 7 that explicitly refer readers to the to ingredient and other labeling prohibition in 27 U.S.C. 205(e) applies regulations in part 4 for sake´ and similar requirements administered by the FDA. to any persons engaged in business as a products that meet the definition of 2. Subpart B—Certificates of Label brewer, an importer, or a wholesaler of ‘‘wine’’ under the FAA Act, and to the Approval malt beverages, and it prohibits the sale FDA food labeling regulations for As mentioned previously, TTB is or shipment or delivery for sale or alcohol beverage products that do not shipment, or other introduction in proposing to consolidate the regulations fall under the definition of malt related to applying for label approval in interstate or foreign commerce, or beverages, wine, or distilled spirits receipt therein, or removal from a revised subpart B. In addition to the under the FAA Act. TTB receives many customs custody for consumption, of changes already discussed, TTB is inquiries about such products, and TTB any malt beverages in bottles, unless proposing to clarify the COLA believes that including this information such products are bottled, packaged, requirements as they apply to brewers in the regulatory text will be helpful. that are selling their domestically and labeled in conformity with Consistent with the guidance found in bottled malt beverages exclusively in regulations issued by the Secretary of TTB Ruling 2008–3, proposed § 7.6 is a the Treasury with respect to the the State in which the malt beverages new provision that clarifies that certain packaging, marking, branding, labeling, were bottled. In TTB Ruling 2013–1, brewery products are not subject to the and size and fill of container. The TTB issued guidance on this issue. TTB labeling requirements of part 7 because penultimate paragraph of 27 U.S.C. 205 now proposes to make the regulations they do not fall under the definition of further limits this application, by more clear and specific. a ‘‘malt beverage’’ under the FAA Act. providing that the provisions of section In proposed § 7.21(a), the regulations As set forth in greater detail in the 205(e) ‘‘shall apply to the labeling of set forth the general requirement for a ruling, certain brewed products that are malt beverages sold or shipped or COLA. In proposed § 7.21(b), the classified as ‘‘beer’’ under the IRC delivered for shipment or otherwise regulations clarify that a COLA is definition in 26 U.S.C. 5052(a) do not introduced into or received in any State required for malt beverages shipped into fall within the definition of a ‘‘malt from any place outside thereof * * * a State from outside of the State only beverage’’ in the FAA Act, as found in only to the extent that the law of such where the laws or regulations of the 27 U.S.C. 211(a)(7). The major State imposes similar requirements with State require that all malt beverages sold differences between the terms are set respect to the labeling * * * of malt or otherwise disposed of in such State forth as follows in the ruling: beverages not sold or shipped or be labeled in conformity with the delivered for shipment or otherwise As indicated above, the definition of a requirements of subparts D through I of introduced into or received in such ‘‘beer’’ under the IRC differs from the part 7. This is consistent with the State from any place outside thereof.’’ definition of a ‘‘malt beverage’’ under the language in current § 7.40, with Consistent with the language of FAA Act in several significant respects. First, conforming changes to reflect the the IRC does not require beer to be fermented current § 7.20(a) and (b), proposed § 7.4 from malted barley; instead, a beer may be reorganization of part 7. Proposed sets out these jurisdictional limits. brewed or produced from malt or ‘‘from any § 7.21(b) goes on to explain that this Paragraph (a)(1) essentially restates the substitute therefor.’’ Second, the IRC does not requirement applies where the State has provisions of the penultimate paragraph require the use of hops in the production of either adopted subparts D through I in of 27 U.S.C. 205(f). Paragraph (a)(2) sets beer. Third, the definition of ‘‘beer’’ in the their entirety or has adopted

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requirements identical to those set forth recognizes that sometimes intrastate warning statement, which would not be in subparts D through I. This is brewers need some type of certificate permitted to appear on a tap cover or on consistent with the longstanding policy from TTB in order to satisfy State a keg collar that was not firmly affixed of TTB and its predecessor agencies. requirements. We solicit comments on to the keg. TTB seeks comments from Consistent with longstanding policy, whether the issuance of a certificate of the public on whether the proposed rule proposed § 7.21(b) also notes that malt exemption in such circumstances (for would reduce burdens on brewers, and beverages that are not subject to the products that will not be sold outside of whether it could create any consumer COLA requirements of current § 7.21 the State of the bottling brewery) would protection issues. may still be subject to the substantive be useful, and whether the regulations 4. Subpart E—Mandatory Label labeling provisions of subparts D should allow a certificate of exemption Information through I, to the extent that the State for such products. into which the malt beverages are being a. Brand labels. Current § 7.22 shipped has similar State law or 3. Subpart D—Label Standards requires that certain mandatory regulations. This is because a State may Proposed subpart D contains information appear on the brand label of have certain State laws or regulations regulations that govern the placement a malt beverage, while other mandatory that are similar to the labeling and other requirements applicable to information, and any additional regulations in part 7, but are not mandatory information and additional information, may appear on a label identical. In such a case, while the information on labels and containers. As anywhere on the container. The brand COLA requirement would not apply to previously mentioned, TTB is proposing label is defined in current § 7.10 as malt beverages in containers that are a new regulation for keg labels. ‘‘[t]he label carrying, in the usual shipped into that State, the substantive Proposed § 7.51(a) provides, consistent distinctive design, the brand name of labeling provisions may apply to the with current regulations, that any label the malt beverage’’ and, under current extent that the state in question has that is not an integral part of the § 7.22, the brand name, class, name and similar state law. container must be affixed to the address, net contents (except when As noted earlier, the FAA Act requires container in such a way that it cannot blown, branded, or burned, on the any brewer or wholesaler who bottles be removed without thorough container), and alcohol content (when malt beverages to obtain a COLA prior application of water or other solvents. required for certain malt beverages to bottling. The FAA Act then goes on However, proposed § 7.51(b) provides produced with flavors or other to state that malt beverages, like wines that a label on a keg with a capacity of nonbeverage ingredients containing and distilled spirits, are exempt from 10 gallons or more that is in the form alcohol) are required to appear on the the COLA requirements if, upon of a keg collar or a tap cover is not brand label. application to the Secretary, the bottler required to be firmly affixed, provided In practice, however, a brand label shows that the malt beverages to be that the name of the brewer of the malt may be a label that wraps entirely bottled by the applicant are not to be beverage is permanently or semi- around a can or bottle. As a result, sold, or offered for sale, or shipped or permanently stated on the keg in the mandatory information may appear delivered for shipment, or otherwise form of embossing, engraving, or anywhere on certain cans or bottles. introduced, in interstate or foreign stamping, or through the use of a sticker Such cans and bottles are common commerce. TTB’s predecessor agencies or ink jet method. containers of malt beverages. implemented this exemption for Brewers have asked for such an Furthermore, if the label bearing the distilled spirits and wines by allowing exception, asserting that the current brand name is on the back of the for the issuance of a certificate of requirement for firmly affixed labels is container, then it is the brand label. exemption for these products. However, unduly burdensome when it comes to TTB believes that the current with respect to malt beverages, the kegs. Because kegs are intended to be regulations requiring that certain regulations did not require a COLA for reused, brewers have argued that it takes mandatory information be placed on the products that were not to be entered in considerable time and effort to scrape brand label of malt beverage containers interstate commerce. off the label each time a keg is to be are unduly restrictive. Furthermore, the Prior to the issuance of TTB Ruling reused. For this reason, brewers have prevalence of wraparound labels 2013–1, TTB received several inquiries requested permission to use a keg collar significantly reduces the consumer from brewers who were not sure how that is not firmly affixed to the keg, or protection otherwise provided by this the COLA requirements applied to their a tap cover, to bear mandatory labeling rule. Finally, TTB believes that products. Accordingly, proposed information. consumers are used to looking at the § 7.21(c) specifically clarifies that TTB believes that additional back and neck labels to find mandatory persons bottling malt beverages that will flexibility can be afforded with regard to information on containers. not be shipped, or delivered for sale or the labeling of kegs without sacrificing Accordingly, TTB is proposing, in shipment, in interstate or foreign consumer protection. For this reason, proposed § 7.63, to amend the commerce, are not required to obtain a the proposed rule requires the name of regulations to allow mandatory COLA or a certificate of exemption from the brewer to be permanently or semi- information to appear on any label on label approval, along with a note permanently stated on the keg in the the malt beverage container. explaining what a certificate of form of embossing, engraving, or b. Alcohol content. As previously exemption from label approval is. stamping, or through the use of a sticker noted, the FAA Act, which was enacted The proposed regulations are thus or ink jet method. TTB notes that its in 1935, prohibited alcohol content consistent with current regulations in IRC-based regulations in current 27 CFR statements on malt beverage labels that they do not require a certificate of 25.141 already require the name of the unless required by State law. See 27 exemption for malt beverages that will brewer to be permanently marked on U.S.C. 205(e)(2). That prohibition was not be shipped or otherwise introduced each barrel or keg. TTB also notes that overturned in 1995 by the U.S. Supreme in interstate or foreign commerce. TTB the proposed regulatory text specifically Court in Rubin v. Coors Brewing believes that this is consistent with its states that this exemption in no way Company, 514 U.S. 476 (1995). overall goal of minimizing burdens on affects the requirements in 27 CFR part Prior to the Supreme Court’s decision industry members. However, TTB 16 regarding the mandatory health in Coors, the malt beverage regulations

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in § 7.26 reflected the statutory With regard to statements of alcohol of any tolerance that would otherwise prohibition against alcohol content content by weight, some States require be allowed. statements. After a ruling by the United alcohol content statements to be Finally, this document does not States District Court for the District of expressed in this form. The regulations propose to make alcohol content Colorado in the Coors litigation, TTB’s have always allowed alcohol content statements on malt beverage labels predecessor agency, ATF, issued an statements to be made in accordance mandatory. In Notice No. 73 (72 FR interim rule indefinitely suspending with State requirements, and will 41860, July 31, 2007) TTB proposed those regulations as of April 19, 1993. continue to do so. However, some requiring alcohol content statements for See T.D. ATF–339 (58 FR 21232, April brewers would like to put alcohol all malt beverage labels, but no final 19, 1993). That interim rule also content as both a percentage of alcohol rule on that issue has been published. implemented new alcohol content by volume and as a percentage of TTB is not proposing to address regulations by adding current § 7.71, alcohol by weight on labels of products mandatory alcohol content statements which allows alcohol content sold in all States, so that they can use for malt beverage containers in this statements unless prohibited by State the same label in the States that require rulemaking; TTB will address that issue law. When the alcohol content is stated, alcohol content as a percentage of in a separate rulemaking procedure. and the manner of the statement is not alcohol by weight and in other States c. Name and place where bottled on required under State law, the provisions that neither require nor prohibit alcohol labels of domestically bottled malt of current § 7.71 prescribe how the content statements as a percentage of beverages. The name and place where alcohol content may be stated. The 1993 alcohol by weight. bottled informs the consumer as to who regulations were issued as an interim TTB is proposing to allow this, but it bottled the malt beverage, and where the rule and they have not been finalized. solicits comments on whether allowing bottling took place or where the bottler’s principal place of business is. Proposed In 2005, in T.D. TTB–21 (70 FR 194, this information on labels would be § 7.66 is derived from current § 7.25(a) January 3, 2005), TTB issued a final rule confusing to consumers, or whether it and (c) and prescribes how the name requiring alcohol content statements for would provide consumers with useful and place where malt beverages are those malt beverages that contain additional information. In particular, bottled must appear on containers of alcohol derived from added flavors or TTB seeks comments on whether domestically bottled malt beverages. other added nonbeverage ingredients permitting both formats on labels might The proposed regulations differ from the (other than hops extract) containing confuse consumers as to the meaning of the different ways of expressing alcohol current regulations in a few key ways. alcohol. TTB is retaining this provision content. If so, does requiring the First, the proposed regulations reflect in the proposed regulations, and TTB is statements to appear together, as part of agency policy stated in the Beverage proposing to finalize the interim alcohol the same alcohol content statement, Alcohol Manual for Malt Beverages content regulations in this rulemaking. negate any potential confusion? (TTB P 5130.3), that a listing of all the In this proposed rule, current § 7.26 is In addition, in proposed § 7.65(c), brewer’s locations may be provided on removed, and the provisions of current TTB proposes to expand the tolerance a label under certain conditions. This § 7.71 are incorporated in proposed for alcohol content on malt beverage language is also consistent with labeling § 7.65 with some editorial changes for labels. Currently, for most malt requirements for beer under TTB’s IRC- clarity, including a list of the acceptable beverages, the regulations allow a based regulations in 27 CFR 25.142. ways to present an alcohol content tolerance of 0.3 percentage points above Second, the proposed regulations statement on a label. Also, several or below the labeled alcohol content. provide more guidance with regard to substantive changes are proposed, as set TTB proposes to expand this tolerance what is required when malt beverages forth below. to one percentage point above or below are brewed and bottled for another Proposed § 7.65(b)(1) specifically the labeled alcohol content. Some person. For example, the proposed provides that statements other than a brewers, especially small brewers, have regulations provide that, if the same percentage of alcohol by volume, such avoided putting an optional alcohol brand of malt beverages is brewed and as statements of alcohol by weight, may content statement on malt beverage bottled by two breweries that are not of appear on the label if they are truthful, labels because they have difficulty the same ownership, the label for each accurate, and specific factual maintaining a precise alcohol content brewery may set forth both locations representations of alcohol content, and from batch to batch. TTB believes that where bottling takes place, as long as if they appear together with, and as part increasing the tolerance level will the label uses the actual locations (and of, the statement of alcohol content as encourage more brewers to include this not the principal place of business) and a percentage of alcohol by volume. important information on labels. as long as the nature of the agreement Among other things, this proposal is Furthermore, TTB does not believe that is clearly set forth. Examples are consistent with the policy adopted in a one percentage point variation from provided in the regulatory text. TTB Ruling 2013–2, in which TTB the labeled alcohol content will Third, the proposed regulations allowed the use of voluntary Serving significantly impact consumers. We provide that the place of bottling and Facts statements on labels and in note that the wine regulations allow, the address of the principal place of advertisements. A Serving Facts with certain exceptions, tolerances of business of a brewer must be consistent statement includes nutrient information one percentage point for wines above 14 with the city and State of the address and may, on an optional basis, also percent alcohol by volume and 1.5 reflected on the brewers notice. This include alcohol content information. In percentage points for wines with an change reflects TTB’s current policy as the ruling, TTB held that if alcohol alcohol content of no more than 14 stated in the Beverage Alcohol Manual. content is expressed as a percentage of percent alcohol by volume. d. Net contents. The current alcohol by volume, the Serving Facts Exceptions to the tolerance are regulations allow for the use of U.S. statement may also include a statement maintained without change. For standard measures but do not address of the fluid ounces of pure ethyl alcohol example, if a malt beverage label states whether metric contents may also be per serving (rounded to the nearest that the beverage has an alcohol content displayed. However, it is current TTB tenth) as part of the alcohol by volume above 0.5 percent, the actual content policy to allow net contents to be statement. may not be below 0.5 percent, regardless expressed in both formats. Proposed

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§ 7.70 allows for the statement of net terms are likely to mislead consumers particular malt liquors, in an advance contents of metric measurements in into believing a product was made notice of proposed rulemaking. See addition to, but not in lieu of, the U.S. under governmental supervision or into Notice No. 771 (58 FR. 21126, April 19, standard measures. believing a malt beverage is a distilled 1993). However, the regulations were spirit, and, as a result, whether TTB not amended to include such standards. 5. Subpart F—Restricted Labeling should continue to prohibit their use on In Notice No. 771, ATF stated that its Statements; Use of the Term ‘‘Draft’’ malt beverage labels. predecessor agency, the Federal Alcohol The proposed regulations also address b. Strength claims. As previously Administration (FAA), issued proposed the use of the term ‘‘draft’’ on malt mentioned, the FAA Act prohibits both regulations regarding standards of beverage labels. Longstanding Bureau statements of alcohol content and identity for malt beverages in 1935, but policy is set forth in Industry Circular statements likely to be considered as noted that there were differences of 65–1, which sets out standards for the statements of alcohol content from opinion in the brewing industry use of the word ‘‘draft’’ on malt appearing on malt beverage labels, regarding the standards and definitions beverage labels. Proposed § 7.87 reflects unless required by State law. See 27 for certain designations. The FAA this policy and provides that any malt U.S.C. 205(e)(2). Current §§ 7.29(f) and issued regulations in 1936 providing beverage in a container of one gallon or 7.29(g) both implement the statutory that products containing less than 5 more that dispenses through a tap, ban on statements that are likely to be percent alcohol by volume could not be spigot, faucet, or similar device may be considered statements of alcohol designated as ale, porter, or stout. See described as ‘‘draft.’’ Malt beverages content on malt beverage labels. Current Regulations No. 7, section 24 (1 FR packaged in customary bottles and cans § 7.29(f) prohibits the use of the words 2013, November 21, 1936). The may also be described as ‘‘draft’’ if they ‘‘strong,’’ ‘‘full strength,’’ ‘‘extra regulations were premised, in part, on are unpasteurized and require strength,’’ ‘‘high test,’’ ‘‘high proof,’’ the public perception that ale, porter, refrigeration for preservation, or if the ‘‘pre-war strength,’’ ‘‘full oldtime and stout were higher in alcohol content unpasteurized beverage has been sterile alcoholic strength,’’ and similar words than beer. After more hearings, the FAA filtered and aseptically filled. Finally, or statements that are likely to be amended the regulations in 1938 to the ruling provides that malt beverages considered as statements of alcohol eliminate the list of classes and the packaged in customary bottles or cans content on labels of malt beverages. The minimum alcohol content requirements that have been pasteurized may be proposed rule modernizes the language for ale, porter, and stout. described as ‘‘draft brewed’’, ‘‘draft beer of these provisions by removing some TTB does not propose now to include flavor’’, ‘‘old time on tap taste’’ or with terms (such as ‘‘pre-war strength’’ and specific standards of identity. Proposed another similar phrase, only if the word ‘‘full oldtime alcoholic strength’’) that § 7.141 is derived from 27 CFR 7.24(a) ‘‘pasteurized’’ appears on the label. are not likely to be used by today’s and sets out standards for class and type As a matter of internal policy, TTB brewers. designations on malt beverages. This started to approve certain labels of section explains that the class of the 7. Subpart I—Classes and Types of Malt pasteurized malt beverages using the malt beverage must be stated on the Beverages term ‘‘draft’’ standing alone, if the word label. The type may optionally be stated. ‘‘pasteurized’’ also appears on the label. Part 7 does not prescribe standards of Statements of class and type must TTB is soliciting comments on whether identity for malt beverages. Instead, conform to the designation of the this practice is misleading and should current § 7.24(a) provides that product as known to the trade. If the be changed. TTB is interested in statements of class and type for malt product is not known to the trade, the comments specifically on whether it beverages shall conform to the product must contain a distinctive or should continue to allow the use of any designation of the product as known to fanciful name as well as a statement of such terms on labels of pasteurized malt the trade. If the product is not known to composition. beverages. Please let TTB know if a the trade under a particular designation, Proposed § 7.141 differs from the change in these policies would impact a distinctive or fanciful name, together current regulations in that it proposes to existing labels. with an adequate and truthful statement define a ‘‘malt beverage specialty’’ as a of composition of the product, shall be malt beverage that does not fall under 6. Subpart H—Labeling Practices That stated, and such statement is treated as any of the class designations set forth in Are Prohibited if They Are Misleading a statement of class and type for part 7 and is not known to the trade a. Use of the term ‘‘bonded.’’ One purposes of part 7. under a particular designation, usually currently prohibited practice is the use Current Section 7.24(d) states that no because of the addition of ingredients on malt beverage labels of the term product containing less than one-half of such as colorings, flavorings, or food ‘‘bonded’’ or similar terms that may one percent alcohol by volume shall materials, or the use of certain types of imply governmental supervision over bear the class designation ‘‘beer,’’ ‘‘lager production processes. Such beverages the production, bottling, or packing of beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ or will not be designated as ‘‘malt beverage the product. TTB believes that this ‘‘stout.’’ Further, current § 7.24(e) specialties’’ on the label, but the term implication (that such terms imply provides that no product other than a reflects current usage and is a governmental supervision) is related to malt beverage fermented at convenient way to refer to such the use of those terms with regard to comparatively high temperature, products in the regulations. distilled spirits, and that such terms possessing the characteristics generally Proposed § 7.142 sets out class were historically prohibited because attributed to ‘‘ale,’’ ‘‘porter,’’ or ‘‘stout’’ designations. Any malt beverage may be their use on malt beverage labels would and produced without the use of designated simply as a ‘‘malt beverage.’’ mislead consumers by causing them to coloring or flavoring materials (other The designations ‘‘beer’’, ‘‘ale’’, believe that the malt beverage was than those recognized in standard ‘‘porter’’, ‘‘stout’’, ‘‘lager’’, and ‘‘malt actually a distilled spirit. The text, at practices) shall bear any of those class liquor’’ may be used to designate malt proposed § 7.131, does not differ from designations. beverages that contain at least 0.5 the text currently prohibiting such terms In 1993, ATF, TTB’s predecessor percent alcohol by volume and that (in § 7.29(c)). However, TTB is agency, sought comments on standards conform to the trade’s understanding of requesting comments on whether such of identity for malt beverages, in those designations. TTB proposes to

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allow these designations to be preceded TTB also proposes to incorporate and and to add definitions for ‘‘consumer or followed by descriptions of the color supersede Ruling 76–13, which sets specialty item,’’ and ‘‘responsible of the product (such as brown, red, or forth standards for cereal beverages, advertiser.’’ TTB also proposes to golden). which are malt beverages that contain amend the definition of Proposed § 7.143 is largely consistent less than 0.5 percent alcohol by volume, ‘‘advertisement’’ that is currently found with existing regulations on class and and confirms that such beverages fall in §§ 4.61, 5.62, and 7.51. Certain type designations. There are new under the authority of the FAA Act. statements on container coverings, proposed provisions for ‘‘ice beer,’’ Proposed § 7.146 sets forth the cartons, cases, carriers, or other ‘‘wheat beer,’’ ‘‘rye beer,’’ and ‘‘barley requirements for geographical names packaging have traditionally been wine ale,’’ consistent with existing TTB currently found in section 27 CFR treated as advertising materials. As policy. 7.24(f) through (h) with clarifying discussed in section II B of this The proposed regulations in proposed changes. TTB proposes to clarify that preamble, TTB proposes to amend the §§ 7.143(h) and 7.144 reflect changes distinctive names may be used in labeling regulations, in proposed adopted in TTB Ruling 2014–4 with addition to, but not in lieu of a class §§ 4.62, 5.62, and 7.62, to clarify that respect to the labeling of malt beverage designation. For example, Vienna Beer certain information must appear on products fermented or flavored with or Bavarian Stout may appear as packaging materials. These items would honey, certain fruits, and certain spices. designations. not be considered advertisements. Prior to the issuance of this ruling, the Malt beverages that are not ‘‘known to However, items such as hang tags that Brewers Association, a trade association the trade’’ are required to be labeled accompany the bottle would continue to representing small brewers, petitioned with a statement of composition. be considered advertisements and TTB to exempt certain malt beverages Proposed § 7.147 sets forth provisions would be subject to the rules in part 14. from the formula requirements under for statements of composition on malt In proposed § 14.4, TTB sets forth the part 25, and to liberalize the labeling beverages. These provisions are new to general requirement that advertisements rules applicable to these products. The the regulations and reflect current must be in conformity with the TTB Brewers Association stated that ‘‘[W]ell- policy. Specifically, a statement of regulations found in part 14. TTB known and widely-distributed products composition is required to appear on the proposes to add a substantiation such as fruit beers and spiced beers’’ label for malt beverage specialty requirement to the regulation that were ‘‘well known to the trade and products, as defined in proposed mirrors the substantiation requirement consumers by their flavor designations: § 7.141(b), which are not known to the for claims made on labels. Accordingly, e.g., fruit beers, spiced ales, honey trade under a particular designation. For industry members will be required to porters, and so forth. Required example, the addition of flavoring substantiate any claim made on an statements of composition such as ‘ale materials, colors, or artificial sweeteners advertisement and a claim that cannot brewed with raspberry juice’ or ‘porter may change the class and type of the be adequately substantiated will be brewed with honey’ simply are malt beverage. The statement of considered misleading. TTB also unnecessary, clutter labels, and provide composition along with a distinctive or proposes to require that the responsible no more information to the consumer fanciful name serves as the class and advertiser provide substantiation upon than the readily-understood type designation for these products. request for a period of five years from designations of ‘raspberry ale’ or ’honey F. Proposed 27 CFR Part 14 the time the advertisement was porter.’ ’’ (Advertising) disseminated or published. The petition also suggested that TTB Certain information is required to abandon the distinction between fruit Currently the regulatory provisions appear on alcohol beverage beers made with added fruits or juices that address the advertising of wine, advertisements. Specifically, the and those fermented with such distilled spirits, and malt beverages are responsible advertiser’s name and substances, but, instead, should allow set forth in parts 4, 5, and 7, contact information must appear on the brewers to make this distinction on their respectively. As noted above, TTB advertisement. Currently, the labels if they wish. proposes to add a new 27 CFR part 14, regulations require the name and In TTB Ruling 2014–4, TTB adopted Advertising of Wine, Distilled Spirits, address to appear on the advertisement. these changes for certain malt beverages and Malt Beverages, to consolidate these TTB proposes to liberalize that designated in accordance with trade provisions into one part. In general, the requirement so that any type of contact understanding. We are now proposing advertising regulations require that information may be used, such as a to codify these standards in the advertisements, like labels, are truthful, telephone number, website, or email regulations. TTB seeks comments on accurate, and not misleading. Where address. Additionally, the class, class whether additional ingredients should possible, TTB seeks to treat and type, or other designation for the be recognized as traditional ingredients advertisements for wine, distilled product advertised must appear on the in the production of a fermented spirits, and malt beverages consistently. advertisement. The mandatory beverage designated as ‘‘beer,’’ ‘‘ale,’’ TTB proposes to delete the statements are prescribed in the ‘‘porter’’, ‘‘stout,’’ ‘‘lager,’’ or ‘‘malt advertisement regulations for wine, proposed § 14.6. liquor.’’ distilled and malt beverages from parts In the current and proposed The TTB regulations also provide for 4, 5, and 7, respectively, and regulations, if an advertisement refers to special rules for certain classes and consolidate them into the new part 14. a general alcohol beverage product line, types; these are currently found in Additionally, the proposed regulations the only information required is the § 7.24(b) through (e). TTB proposes, in are updated for clarity and to reflect name and address (or contact §§ 7.143 and 7.144, to incorporate and changes in prohibited practices that information, in the proposed rule) of the partially supersede Ruling 94–3, which mirror those proposed in the labeling responsible advertiser. In some cases, held that ice beer is not considered regulations, where appropriate. TTB finds that a ‘‘product line’’ contains concentrated when it is produced by In the definitions section for part 14, only two types of products, and it also removing less than 0.5 percent of the TTB proposes to include several finds administrative difficulty when volume of the beer in the form of ice definitions that apply to advertising that enforcing the mandatory statements crystals and retains beer characteristics. currently appear in parts 4, 5, and 7, requirements on internet sites. TTB

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seeks comments on whether TTB should spirits, and malt beverages, respectively. as set forth in 27 CFR part 1. Proposed modify this requirement and, if it does, In § 14.16, TTB proposes to incorporate § 14.23 sets forth TTB’s authority to how the public might be better informed the modified rules for the use of compromise liability for a violation of when an internet site or other ‘‘double distilled,’’ ‘‘triple distilled,’’ 27 U.S.C. 205 upon payment of a sum advertisement refers to more than one and similar terms, to conform to the not in excess of $500 for each offense. type of product. updated rules for using the terms on This sum is to be collected by the The prohibited practices for labels of distilled spirits, as described appropriate TTB officer and deposited advertisements contain a number of above. TTB also proposes, in § 14.17, to into the Treasury as miscellaneous rules and prohibitions that conform to update the rules on strength claims on receipts. the rules for labels found in parts 4, 5, malt beverages, so that strength claims By proposing to place these and 7. Generally, a statement or are only prohibited if the claims imply provisions in the regulations, TTB is representation that is prohibited from that products should be purchased on making it easier for a person to locate appearing on a label is also prohibited the basis of alcohol strength. Consistent the penalties for violating the FAA Act from appearing on an advertisement. with current policy, TTB proposes to and the regulations implementing the TTB proposes to set forth the rules that remove the existing restrictions on FAA Act. These proposed regulations apply to alcohol beverage alcohol content statements in will not change the criminal penalty advertisements in subpart A. Sections advertisements for wine and malt and compromise provisions, which are 14.11 through 14.14 set forth the rules beverages, in light of the Supreme set forth in the statute. that apply to all alcohol beverage Court’s decision in Coors, which was products. These are organized into discussed earlier in this document. The Office of Management and Budget sections that include related topics, in a Although the Coors decision related to (OMB) assigns control numbers to TTB’s similar organization to rules in parts 4, labels, not advertisements, TTB does not information collection requirements. In 5, and 7: Restricted practices, prohibited believe that the advertising regulations subpart D, TTB proposes to list those practices, and misleading statements or should prohibit truthful, specific and sections that impose an information representations. numerical claims about the alcohol collection requirement along with the TTB proposes, in § 14.14(f) to prohibit content of those products. assigned OMB control number. TTB statements or representations that create In subpart C, TTB proposes to include believes that industry members will an impression that a product is a references to various provisions of the have an easier time locating OMB different commodity. For example, a FAA Act. Proposed § 14.21 states that a control numbers for information malt beverage advertisement could not violation of the advertising provisions of collection requirements if they are listed have a representation that leads the 27 U.S.C. 205(e) is punishable as a in one location. viewer to believe that the product is misdemeanor and refers readers to 27 G. Impact on Public Guidance wine. This prohibition is similar to that U.S.C. 207 for the statutory provisions Documents proposed in the labeling regulations in relating to criminal penalties, consent parts 4, 5, and 7. As noted above, TTB decrees, and injunctions. Proposed The chart below describes the impact is not proposing substantive changes to § 14.22 provides that basic permits are of this proposed rule on rulings, the rules on health-related statements conditioned upon compliance with the industry circulars, and other public on labels, and TTB similarly does not provisions of 27 U.S.C. 205, including guidance documents issued over the propose changes for such statements on the advertising provisions of part 14, years by TTB and its various advertisements at this time. and that a willful violation of the predecessor agencies. The following Sections 14.15, 14.16, and 14.17 set conditions of a basic permit provides public guidance documents will be forth the rules specific to grounds for the revocation or superseded by the publication of a final advertisements for wine, distilled suspension of the permit, as applicable, rule:

Incorporated into proposed Document No. Subject sections at:

Cross Cutting

Industry Circular 1963–23 ...... Use of Disparaging Themes or References in Alcoholic Beverage Advertising is Not incorporated. Prohibited. TTB Guidance 2011–5 ...... Personalized Labels ...... §§ 4.29, 5.29, and 7.29. TTB Ruling 2012–3 ...... Recognition of Andong Soju and Gyeongju Beopju as Distinctive Products of §§ 4.148 and 5.154. Korea.

Wine

Revenue Ruling 54–250 ...... Vintage Date ...... § 4.95. Revenue Ruling 54–418 ...... Aperitif Wine ...... § 4.147. Revenue Ruling 55–618 ...... Wine Labels ...... Not incorporated. Revenue Ruling 71–535 ...... Labels on Imported Alcohol Beverages ...... § 4.68. ATF Ruling 73–5 ...... Spanish Wines Labeled with Semi-generic Designations ...... § 4.174. ATF Ruling 73–6 ...... Spanish Wines Labeled with Grape Type Designations ...... Not incorporated. ATF Ruling 78–4 ...... Use of Descriptive Terms on Wine Labels ...... § 4.94. ATF Ruling 82–4 ...... Use of Descriptive Terms on Wine Labels ...... § 4.94. ATF Ruling 85–14 ...... Labeling of Wine Bearing Generic or Semi-generic Designation ...... Not incorporated. ATF Ruling 91–1 ...... Multistate Appellations of Origin for Contiguous States ...... § 4.90. ATF Ruling 2002–7 ...... Wine made from grapes frozen after harvest may not be labeled with the term § 4.94. ‘‘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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Incorporated into proposed Document No. Subject sections at:

TTB Ruling 2008–1 ...... Standards of Identity and the Use of Semi-generic Designations and Retsina on § 4.174. Certain European Wines Imported into the United States.

Distilled Spirits

Revenue Ruling 54–592 ...... Relabeling Tax Paid Distilled Spirits ...... § 5.42. Revenue Ruling 55–399 ...... Straight Whiskey ...... Not Incorporated. Revenue Ruling 55–552 ...... Grain Neutral Spirits Stored in Wood may not be Labeled as Vodka ...... § 5.142. Revenue Ruling 55–740 ...... Neutral Spirits Subjected to Vodka Process but Stored in Reused Whiskey Barrels § 5.142. may not be Designated or Labeled as Vodka. Revenue Ruling 56–98 ...... Flavored Vodka ...... § 5.142. Revenue Ruling 59–408 ...... Addition of Caramel ...... § 5.156. Revenue Ruling 61–15 ...... Labeling of Scotch Whisky ...... § 5.90(b). Revenue Ruling 61–25 ...... Distilled Spirits Labeling ...... §§ 5.141 and 5.143. Revenue Ruling 61–71 ...... Use of the Word Straight in Labeling and Advertising of Liqueurs or Cordials ...... § 5.150(a). Revenue Ruling 62–224 ...... Relabeling by Wholesale Liquor Dealer ...... § 5.42. Revenue Ruling 68–502 ...... Light Whisky from Kentucky ...... § 5.66(f)(3). Revenue Ruling 69–58 ...... Age statements ...... Not Incorporated. Revenue Ruling 71–188 ...... Whisky Classification as White ...... § 5.113. Revenue Ruling 71–535 ...... Labels on Imported Alcohol Beverages ...... § 5.68. ATF Ruling 75–32 ...... Labeling of Diluted Spirits ...... § 5.153. ATF Ruling 76–3 ...... Labeling of Vodka Treated with Activated Carbon as ‘‘Charcoal Filtered’’ ...... § 5.142. ATF Ruling 79–9 ...... Distilled Spirits Labels ...... § 5.67. ATF Ruling 88–1 ...... Alcohol Content on Labels and in Advertisements of Distilled Spirits ...... § 5.44(b)(5). ATF Ruling 93–3 ...... Age Statements on Grappa Brandy ...... § 5.74(c). ATF Ruling 94–5 ...... Geographical Names ...... § 5.143 and § 5.145(c)(2)– (5). ATF Ruling 97–1 ...... Use of a ‘‘Trace Amount’’ of Citric Acid in the Production of Vodka without Chang- § 5.142. ing its Designation as Vodka. ATF Ruling 2001–2 ...... Country of Origin Statements on Distilled Spirits Labels ...... § 5.69. Industry Circular 1971–7 ...... Protection of Names of Bourbon Whiskey and Certain French Brandies ...... §§ 5.143 and 5.145. Industry Circular 76–28 ...... Production of New Charred Barrels using Used Heads ...... Not Incorporated. Industry Circular 2007–5 ...... Use of the Term Absinthe for Distilled Spirits ...... § 5.149.

Malt Beverages

Revenue Ruling 54–513 ...... Labeling and Advertising of Malt Beverages ...... Not incorporated. Revenue Ruling 71–535 ...... Labels on Imported Alcohol Beverages ...... § 7.68. ATF Ruling 76–13 ...... Malt Beverages of Less Than 1⁄2 of 1% Alcohol by Volume Subject to FAA Act ..... § 7.145. ATF Ruling 94–3 (superseded Ice Beer ...... § 7.143. only with respect to the pro- visions related to part 7. The part 25 provisions remain in effect.). ATF Procedure 98–1 ...... Labeling of Imported Malt Beverages Bottled or Packed in the United States, and §§ 7.67 and 7.69. Labeling of Blends of Imported and Domestic Malt Beverages Bottled or Packed in the United States. TTB Ruling 2008–3 ...... Classification of Brewed Products ...... § 7.6. TTB Ruling 2013–1 ...... Malt Beverages Sold Exclusively in Intrastate Commerce ...... §§ 7.4 and 7.21. TTB Ruling 2015–1 ...... Ingredients and Processes Used in the Production of Beer Not Subject to Formula §§ 7.143 and 7.144. Requirements. Industry Circular 1965–1 ...... Use of the Term ‘‘Draft Beer’’ on Labels and in Advertising of Beer ...... § 7.87.

III. Derivation Tables for Proposed 27 CFR Part 4 27 CFR Part 4 Parts 4, 5, 7, and 14 Requirements in new Are derived from cur- Requirements in new Are derived from cur- 27 CFR Part 4 section: rent section: section: rent section: Requirements in new Are derived from cur- 4.7 ...... New. 4.23 ...... 4.50(b). section: rent section: 4.8 ...... 4.80. 4.24 ...... 4.40. 4.9 ...... New. 4.25 ...... New. 4.0 ...... 4.1. 4.10 ...... 4.5. 4.27 ...... 4.51. 4.11 ...... 4.3. 4.28 ...... 4.38(h) and New. Subpart A—General Provisions 4.12 ...... 4.4. 4.29 ...... New. 4.30 ...... 4.45. 4.1 ...... 4.10. Subpart B—Certificates of Label Approval 4.2 ...... 4.2. and Certificates of Exemption of Label Subpart C—Alteration of Labels, Re- 4.3 ...... 4.30(a) and New. Approval labeling, and Adding Information to 4.4 ...... Reserved. Containers 4.5 ...... New. 4.21 ...... 4.50(a) and (b). 4.6 ...... New. 4.22 ...... New. 4.41 ...... 4.30(b).

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27 CFR Part 4 27 CFR Part 4 27 CFR Part 5 Requirements in new Are derived from cur- Requirements in new Are derived from cur- Requirements of new Are derived from cur- section: rent section: section: rent section: section: rent section:

4.42 ...... 4.30(b). 4.135 ...... 4.39(k). 5.3 ...... New. 4.43 ...... 4.30(b). 4.136 ...... 4.39(n). 5.4 ...... [reserved]. 4.44 ...... 4.30(b) and New. 5.5 ...... [reserved]. Subpart I—The Standards of Identity for 5.6 ...... [reserved]. Subpart D—Label Standards Wine 5.7 ...... New. 5.8 ...... New. 4.51 ...... 4.38(e). 4.141 ...... 4.20 and 4.34. 5.9 ...... New. 4.52 ...... 4.38(a). 4.142 ...... 4.21(a). 5.10 ...... 5.2. 4.53 ...... 4.38(b). 4.143 ...... 4.21(b). 5.11 ...... 5.3. 4.54 ...... New. 4.144 ...... 4.21(c). 5.12 ...... 5.4. 4.55 ...... 4.38(c). 4.145 ...... 4.21(d) and (e). 4.56 ...... 4.38(f). 4.146 ...... 4.21(f). Subpart B—Certificates of Label Approval 4.147 ...... 4.21(g). and Certificates of Exemption From Subpart E—Mandatory Label Information 4.148 ...... (New). Label Approval 4.149 ...... 4.21(i). 4.61 ...... New. 4.150 ...... 4.21(h). 5.21 ...... 5.31(a). 4.62 ...... 4.38a and New. 4.151 ...... New. 5.22 ...... 5.55. 4.63 ...... 4.32. 4.152 & 4.153 Re- N/A. 5.23 ...... 5.55(b). 4.64 ...... 4.33; 4.39(i) and (j). served. 5.24 ...... 5.51(a). 4.65 ...... 4.36. 4.154 ...... 4.22. 5.25 ...... 5.51. 4.66 ...... 4.35(a) and (c); New. 4.155 Reserved ...... N/A. 5.27 ...... 5.51 and 5.55. 4.67 ...... 4.35(b) and (c). 4.156 ...... 4.23. 5.28 ...... 5.33(g). 4.68 ...... 4.35. 4.157 ...... 4.28. 5.29 ...... New. 4.69 ...... New. 4.158–4.172 Re- N/A. 5.30 ...... 5.52. 4.70 ...... 4.37. served. 4.173 ...... 4.24(a). Subpart C—Alteration of Labels, Re- Subpart F—Restricted Labeling Statements 4.174 ...... 4.24(b). labeling and Adding Information to Con- 4.175 ...... 4.24(c)(1)–(c)(2). tainers 4.81 ...... New. 4.82 ...... 4.32a. Subpart J—American Grape Variety Names 5.41 ...... 5.31(b). 4.83 ...... 4.32b. 5.42 ...... 5.31(b). 4.84 ...... 4.101. 4.191 ...... 4.93. 5.43 ...... 4.85 ...... New. 4.192 ...... 4.91. 4.86 ...... 4.39(e)(2). 4.193 ...... 4.92. Subpart D—Label Standards 4.87 ...... 4.39(m). 4.88 ...... 4.25(a). Subpart K—Standards for Wine Con- 5.51 ...... 5.33(e). 4.89 ...... 4.25(b). tainers and Authorized Container Sizes 5.52 ...... 5.33(a). 4.90 ...... 4.25(c) and (d). 5.53 ...... 5.33(b)(5) and (6). 4.91 ...... 4.25(e). 4.201 ...... 4.70. 5.54 ...... New. 4.92 ...... 4.26. 4.202 ...... 4.71. 5.55 ...... 5.33(c). 4.93 ...... New. 4.203 ...... 4.72. 5.56 ...... 5.33(f). 4.94 ...... New. 4.204 ...... New. 4.95 ...... 4.27. Subpart E—Mandatory Label Information 4.96 ...... 4.25(a). Subpart L—Recordkeeping and 4.97 ...... 4.25(b). Substantiation Requirements 5.61 ...... New. 4.98 ...... 4.25(c) and (d). 5.62 ...... 5.41 and New. 4.211 ...... New. 5.63 ...... 5.32. Subpart G—Prohibited Labeling Practices 4.212 ...... New. 5.64 ...... 5.34. 5.65 ...... 5.37. 4.101 ...... New. Subpart M—Penalties and Compromise of 5.66 ...... 5.36. 4.102 ...... 4.39(a)(1). Liability 5.67 ...... 5.36. 4.103 ...... 4.39(a)(3). 5.68 ...... 5.36. 4.104 ...... 4.39(a)(7). 4.221 ...... New. 5.69 ...... 5.36(e). 4.222 ...... New. 5.70 ...... 5.38. Subpart H—Labeling Practices That Are 4.224 ...... New. 5.71 ...... 5.39(a). Prohibited if They Are Misleading 5.72 ...... 5.39(b). Subpart N—Paperwork Reduction Act 5.73 ...... 5.39(c). 4.121 ...... New. 5.74 ...... 5.40. 4.122 ...... 4.39(a)(1). 4.231 ...... New. 4.123 ...... 4.39(a)(5). Subpart F—Restricted Labeling Statements 4.124 ...... 4.39(a)(2). 27 CFR Part 5 4.125 ...... 4.39(a)(4). 5.81 ...... New. 4.126 ...... 4.39(g). Requirements of new Are derived from cur- 5.82 ...... 5.32a. 4.127 ...... 4.39(e). section: rent section: 5.83 ...... 5.32b. 4.128 ...... 4.39(a)(7). 5.84 ...... 5.71. 4.129 ...... 4.39(h). 5.0 ...... 5.1. 5.85 ...... New. 4.130 ...... 4.39(a)(6). 5.86 ...... Reserved. 4.131 ...... 4.39(f). Subpart A—General Provisions 5.87 ...... New. 4.132 Reserved ...... N/A. 5.88 ...... 5.42(b)(4). 4.133 ...... 4.39(a)(8). 5.1 ...... 5.11. 5.89 ...... 5.42(b)(6). 4.134 ...... 4.39(b)–(d). 5.2 ...... 5.1. 5.90 ...... 5.22(k)(4).

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27 CFR Part 5 27 CFR Part 5 27 CFR Part 7 Requirements of new Are derived from cur- Requirements of new Are derived from cur- Requirements of new Are derived from cur- section: rent section: section: rent section: section: rent section:

5.91 ...... 5.42(b)(5). Subpart N—Paperwork Reduction Act Subpart F—Restricted Labeling Statements

Subpart G—Prohibited Labeling Practices 5.231 ...... New. 7.81 ...... New. 7.82 ...... 7.22a. 5.101 ...... New. 7.83 ...... 7.22b. 5.102 ...... 5.42(a)(1). 27 CFR Part 7 7.84 ...... 7.81. 5.103 ...... 5.42(a)(3). 7.85 ...... New. Requirements of new Are derived from cur- 7.86 ...... Reserved. Subpart H—Labeling Practices That Are section: rent section: 7.87 ...... New. Prohibited if They Are Misleading 7.0 ...... 7.1. Subpart G—Prohibited Labeling Practices 5.121 ...... New. 5.122 ...... 5.42(a)(1). Subpart A—General Provisions 7.101 ...... New. 5.123 ...... 5.42(a)(5). 7.102 ...... 7.29(a)(1). 5.124 ...... 5.42(a)(2). 7.1 ...... 7.10. 7.103 ...... 7.29(a)(3). 5.125 ...... 5.42(a)(4). 7.2 ...... 7.2. 5.126 ...... 5.42(b)(7). 7.3 ...... 7.20(b) and (c). Subpart H—Labeling Practices That Are 5.127 ...... 5.42. 7.4 ...... 7.20(a) and New. Prohibited if They Are Misleading 5.128 ...... New. 7.5 ...... New. 5.129 ...... 5.42(b)(8). 7.6 ...... New. 7.121 ...... New. 5.130 ...... 5.42(a)(6). 7.7 ...... New. 7.122 ...... 7.29(a)(1) and New. 7.8 ...... 7.60. 7.123 ...... 7.29(a)(5). Subpart I—The Standards of Identity for 7.9 ...... New. 7.124 ...... 7.29(a)(2). 7.125 ...... 7.29(a)(4). Distilled Spirits 7.10 ...... 7.4. 7.126 ...... 7.29(d). 7.11 ...... 7.3. 5.141 ...... 5.22. 7.127 ...... 7.29(b). 5.142 ...... 5.22(a). 7.12 ...... 7.5. 7.129 ...... 7.29(e). 5.143 ...... 5.22(b) and 5.35(c). 7.130 ...... 7.29(a)(6). Subpart B—Certificates of Label Approval 5.144 ...... 5.22(c). 7.131 ...... 7.29(c). 5.145 ...... 5.22(d). 7.132 ...... 7.29(f). 7.21 ...... 7.20(b), 7.40 and 5.146 ...... 5.22(e). 7.41. 5.147 ...... 5.22(f). Subpart I—Classes and Types of Malt 7.22 ...... 7.40 and 7.41. 5.148 ...... New. beverages 5.149 ...... New. 7.23 ...... [reserved]. 5.150 ...... 5.22(h). 7.24 ...... 7.30 and 7.31(b). 7.141 ...... 7.24(a). 5.151 ...... 5.22(i). 7.25 ...... 7.30 and 7.31. 7.142 ...... 7.24(e). 5.152 ...... 5.22(j). 7.27 ...... 7.42. 7.143 ...... 7.24(b) and New. 5.153 ...... New. 7.28 ...... 7.31(d). 7.144 ...... New. 5.154 ...... 5.22(k) and (l). 7.29 ...... New. 7.145 ...... 7.24(d). 5.156 ...... 5.23. 7.146 ...... 7.24(g), (f), and (h). 5.166 ...... New. Subpart C—Alteration of Labels, Re- 7.147 ...... New. labeling, and Adding Information to Subpart J—Formulas Containers Subpart L—Recordkeeping and Substantiation Requirements 5.191 ...... 5.25. 7.41 ...... 7.20(c)(1). 5.192 ...... 5.26. 7.42 ...... 7.20(c)(2). 7.211 ...... New. 5.193 ...... 5.27. 7.43 ...... New. 7.212 ...... New. 5.194 ...... 5.28. 7.44 ...... New. Subpart M—Penalties and Compromise of Subpart K—Distilled Spirits Containers and Subpart D—Label Standards Liability Authorized Container Sizes 7.221 ...... New. 7.51 ...... 7.28(d). 7.222 ...... New. 5.201 ...... 5.45. 7.52 ...... 7.28(a). 7.223 ...... New. 5.202 ...... 5.46. 7.53 ...... 7.28(b). 5.203 ...... 5.47a. 7.54 ...... New. Subpart N—Paperwork Reduction Act 5.204 ...... New. 7.55 ...... 7.28(c). 5.205 ...... New. 7.56 ...... 7.28(e). 7.231 ...... New.

Subpart L—Recordkeeping and Subpart E—Mandatory Label Information Substantiation Requirements 27 CFR Part 14 7.61 ...... New. 5.211 ...... New. 7.62 ...... New. Requirements of new Are derived from cur- 5.212 ...... New. section: rent section: 7.63 ...... 7.22. 5.213 ...... 5.33(g). 7.64 ...... 7.23. 14.0 ...... New and 7.50. Subpart M—Penalties and Compromise of 7.65 ...... 7.71. Liability 7.66 ...... 7.25(a) and (c). Subpart A—General Provisions 7.67 ...... 7.25(b). 5.221 ...... New. 7.68 ...... 7.25. 14.1 ...... 4.11, 4.61, 5.11, 5.61, 5.222 ...... New. 7.69 ...... 7.New. 7.11, 7.51. 5.223 ...... New. 7.70 ...... 7.27. 14.2 ...... 4.2, 5.1, 7.2.

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27 CFR Part 14 products into interstate commerce. As ‘‘Organization’’ blank of the online part of its label review process, TTB comment form. If you comment via Requirements of new Are derived from cur- reviews both optional and mandatory postal mail or hand delivery/courier, section: rent section: information on labels. With regard to please submit your entity’s comment on 14.3 ...... 4.4, 5.4, 7.5. optional information, TTB’s main goal is letterhead. 14.4 ...... 4.60, 5.61, 7.50. to ensure that such information does not You may also write to the 14.5 ...... 4.62, 5.63, 7.52. mislead consumers. Administrator before the comment 14.6 ...... 4.63, 5.64, 7.53. TTB also solicits comments from closing date to ask for a public hearing. consumers, industry members, and the The Administrator reserves the right to Subpart B—Rules Related to Specific public on whether such changes would determine whether to hold a public Practices in Advertisements adequately protect consumers. Any hearing. regulatory proposals put forward by 14.11 ...... New. TTB on this issue would, of course, C. Confidentiality 14.12 ...... 4.64(b), 4.65, 5.65(b), 5.66, 7.54(b), 7.55. have to be consistent with the statutory All submitted comments and 14.13 ...... 4.64, 5.65, 7.54. requirements of the FAA Act. attachments are part of the public record 14.14 ...... 4.64, 5.65, 7.54, and B. Submitting Comments and are subject to disclosure. Do not New. enclose any material in your comments 14.15 ...... 4.64. You may submit comments on the that you consider to be confidential or 14.16 ...... 5.65. proposals contained in this document inappropriate for public disclosure. 14.17 ...... 7.54. by using one of the following three methods: D. Public Disclosure Subpart C—Penalties and Compromise of • Federal e-Rulemaking Portal: You Liability TTB will post, and you may view, may send comments via the online copies of this document, selected 14.21 ...... New. comment form posted with this supporting materials, and any online, 14.22 ...... New. document within Docket No. TTB– mailed, or hand-delivered comments 14.23 ...... New. 2018–0007 on ‘‘Regulations.gov,’’ the received about this proposal within Federal e-rulemaking portal, at https:// Docket No. TTB–2018–0007 on the Subpart D—Paperwork Reduction Act www.regulations.gov. A direct link to Federal e-rulemaking portal, that docket is available under Notice 14.31 ...... New. Regulations.gov, at https:// No. 176 on the TTB website at https:// www.regulations.gov. A direct link to _ _ www.ttb.gov/regulations laws/all that docket is available on the TTB IV. Public Participation rulemaking.shtml. Supplemental files website at https://www.ttb.gov/ A. Comments Sought may be attached to comments submitted regulations_laws/all_rulemaking.shtml via Regulations.gov. For complete TTB requests comments from the under Notice No. 176. You may also instructions on how to use reach the relevant docket through the public and all interested parties on the Regulations.gov, visit the site and click regulatory proposals contained in this Regulations.gov search page at https:// on the ‘‘Help’’ tab. www.regulations.gov. For information document. TTB is particularly • U.S. Mail: You may send comments interested in comments that address on how to use Regulations.gov, click on via postal mail to the Director, the site’s ‘‘Help’’ tab. whether the proposed revisions to the Regulations and Rulings Division, labeling and advertising regulations will All posted comments will display the Alcohol and Tobacco Tax and Trade commenter’s name, organization (if continue to protect the consumer by Bureau, 1310 G Street NW, Box 12, prohibiting false or misleading any), city, and State, and, in the case of Washington, DC 20005. mailed comments, all address statements and requiring that labels • Hand Delivery/Courier: You may provide the consumer with adequate information, including email addresses. hand-carry your comments or have them TTB may omit voluminous attachments information about the identity and hand-carried to the Alcohol and quality of the product. Where TTB or material that the Bureau considers Tobacco Tax and Trade Bureau, 1310 G unsuitable for posting. proposes substantive changes, TTB Street NW, Suite 400, Washington, DC seeks comments on the proposals for You may also view copies of this 20005. document, all supporting materials, and further appropriate improvements. With Please submit your comments by the any online, mailed, or hand-delivered respect to the few proposed changes that closing date shown above in this comments that TTB receives about this may require changes in current labeling document. Your comments must proposal by appointment at the TTB or advertising practices, TTB seeks reference Notice No. 176 and include Information Resource Center, 1310 G comments on the impact that the your name and mailing address. Your Street NW, Washington, DC 20005. You proposed changes will have on industry comments also must be made in may also obtain copies at 20 cents per members and any suggestions as to how English, be legible, and be written in 8.5 x 11-inch page. Contact TTB’s to minimize any negative impact. language acceptable for public Federal Register liaision officer at the TTB also seeks comments on whether disclosure. TTB does not acknowledge above address or by telephone at 202– more significant changes to the label receipt of comments, and TTB considers 453–2135 to schedule an appointment approval process, such as expanding the all comments as originals. categories of optional information that In your comment, please clearly state or to request copies of comments or may be revised without TTB approval or if you are commenting for yourself or on other materials. limiting the scope of TTB’s prior review behalf of an association, business, or V. Regulatory Analysis and Notices of labels to certain mandatory other entity. If you are commenting on information, should be considered. As behalf of an entity, your comment must A. Regulatory Flexibility Act noted earlier in this document, the FAA include the entity’s name as well as In accordance with the Regulatory Act generally requires the submission of your name and position title. If you Flexibility Act (5 U.S.C. 601 et seq.), applications for label approval before comment via Regulations.gov, please TTB has analyzed the potential bottlers or importers introduce their enter the entity’s name in the economic effects of this action on small

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entities. In lieu of the initial regulatory 1. Small Businesses in the Alcohol 500 employees; distillers are considered flexibility analysis required to Beverage Industry small if they have fewer than 750 accompany proposed rules under 5 TTB recognizes that the vast majority employees. U.S.C. 603, section 605 allows the head of producers, bottlers, and importers of The U.S. Census Bureau’s Statistics of of an agency to certify that a rule will alcohol beverages are small entities. The U.S. Businesses data include data on not, if promulgated, have a significant Small Business Administration (SBA) employment among establishments economic impact on a substantial sets out size standards based on the within NAICS codes. The most recent number of small entities. The following North American Industry Classification data are from 2011. TTB used these data analysis provides the factual basis for System (NAICS) under which an entity to calculate what proportion of entities TTB’s certification under section 605. can be considered small for the classified within each relevant NAICS purposes of Regulatory Flexibility Act code could be considered small. TTB analysis.1 Breweries and wineries are also looked at the data from 2005 to try considered small if they have fewer than 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 ...... 92.3 percent (352 small entities of 95.6 percent (696 small entities of 381 total establishments). 728 total establishments). Wineries (NAICS 312130) ...... Fewer than 500 employees ...... 95.2 percent (1559 of 1637) ...... 97.0 percent (2613 of 2694). Distilleries (NAICS 312140) ...... Fewer than 750 employees ...... 77.0 percent (57 of 74) 1 ...... 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-em- ployee 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 a. Clarifying changes: Many of the some requirements to the regulations changes in this proposal are clarifying that reflect TTB policy by: The vast majority of businesses • subject to the proposed rule are small in nature. They are designed to make Making it explicit that mandatory businesses, but the changes proposed in TTB’s requirements for alcohol beverage information may not be obscured in this document will not have a labeling easier to read and use. These whole or in part; • Codifying various TTB policies significant impact on those small proposed changes would not have any impact on small businesses, other than regarding statements of composition; entities. The production, bottling, • making it easier for them to understand Codifying TTB policy on using importation, and distribution of alcohol aggregate packaging to satisfy standards beverages is an industry subject to the existing requirements of the regulation. Examples of clarifying of fill for wine and distilled spirits; extensive Federal, State, and local • Changing the definition of a regulation. As mentioned earlier in this changes include the following: • Adding examples in the regulations certificate of label approval (COLA) to document, the labeling and advertising incorporate TTB’s current policy of regulations under the FAA Act have of how certain requirements may be satisfied; expanding the allowable revisions that been in place since 1936. The proposed may be made to already approved labels • Adding to the regulations guidance rule thus largely restates existing through the issuance of guidance that had previously been provided in requirements, but clarifies and updates documents; these regulations to make them easier to rulings, Industry Circulars, or other • Codifying TTB’s current policy that understand and to incorporate agency documents separate from the any wines, distilled spirits, or malt policies. The proposed regulations take regulations; • beverages that are adulterated under the into account modern business practices Addressing questions the public Federal Food, Drug, and Cosmetic Act and contemporary consumer frequently asks TTB; are mislabeled under the FAA Act; • understanding in order to modernize the Making definitions, organization, • Codifying TTB’s current policy that regulations, and TTB is seeking numbering of sections, and phrasing of compliance with the labeling comments from all interested parties on requirements within the regulations regulations issued under the FAA Act ways in which the regulations may be consistent across 27 CFR parts 4, 5, and does not relieve industry members of improved. 7 to the extent possible; their responsibility to comply with FDA The changes in the proposed rule can • Breaking large subparts and large regulations regarding the safety of be divided into three classes with sections into small subparts and small additives and ingredients, as well as respect to their impact on small entities: sections to increase readability; and FDA regulations regarding the safe use (1) Clarifying changes that do not allow • Providing more cross references in of materials in containers; or prohibit any new conduct but the regulations to relevant regulations • Codifying TTB’s current policy, as improve the clarity and organization of and statutes. stated on the label application form, that TTB’s FAA Act requirements; (2) These changes benefit all regulated the issuance of a COLA does not confer liberalizing changes that will potentially entities, especially small entities, which trademark protection or relieve the give regulated entities new options to typically do not have as many resources certificate holder from liability for fulfill requirements; and (3) changes for complying with the regulations as violations of the FAA Act, the IRC, that impose new requirements or larger entities. In addition to these ABLA, or related regulations, and that require changes to current labels. proposed changes, TTB would also add products covered by a COLA may still

1 See http://www.sba.gov/content/small-business- size-standards.

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be mislabeled if the label contains These provisions reflect current TTB • Expanding the allowable alcohol statements that are false or misleading policy, and thus no existing labels content tolerance for distilled spirits; when applied to the beverage in the should need to be changed to come into • Allowing wholesalers and retailers container; compliance with these requirements. to relabel distilled spirits when • Codifying in the regulations the b. Liberalizing changes: Liberalizing necessary and when approved by TTB; current requirement that containers changes will not require entities that are • Incorporating Ruling 2015–1 by covered by a certificate of exemption currently in compliance with the allowing the use of designations in must bear a labeling statement that the regulations to make any changes, but accordance with trade understanding, product is ‘‘For sale in [name of State] may provide regulated entities with rather than statements of composition, only’’; additional options they can choose to in the labeling of malt beverage • Codifying current TTB guidance use. Any effect on small entities from specialty products that are flavored or with respect to the use of a COLA by an these changes is likely to be positive. fermented with ingredients that TTB has importer other than the permittee to Key examples include: determined are generally recognized as whom the COLA was issued; • Allowing greater flexibility in the traditional ingredients in the production • Codifying TTB’s current policy with placement of mandatory information on of a fermented beverage designated as respect to the approval of the use of labels by eliminating the requirement ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘personalized labels’’ by bottlers or ‘‘malt liquor’’; that mandatory information appear on • without having to resubmit applications the ‘‘brand label’’; Allowing certain mandatory information to appear on the keg collar for label approval; • Liberalizing the requirements for • or tap cover of malt beverage kegs with Amending the regulations on the the use of a type designation consisting a capacity of 10 gallons or more, subject use of semi-generic designations for of multiple grape varieties, thus to certain requirements; and consistency with amendments made to allowing greater flexibility in the • Allowing the use of alternate the IRC in 2006; blending of wines; • contact information (such as the Codifying current policy with • Allowing the use of truthful, respect to the required name and telephone number, website, or email accurate, specific, and non-misleading. address) together with the name of the address statement on labels for wines, additional information on the label distilled spirits, and malt beverages that responsible advertiser in about the grape varieties used to make advertisements. have been subject to certain production a still grape wine, sparkling grape wine, activities after importation in bulk; c. Potentially restrictive changes: • or carbonated grape wine, provided that Potentially restrictive proposed changes Codifying current policy with the information includes every grape respect to the allowed use of certain may require some industry members to variety used to make the wine, listed in either change the labeling of their non-misleading labeling claims about descending order of predominance; environmental and sustainability products or to change the formulation of • Liberalizing the requirements for practices; the product to avoid labeling changes. the use of multicounty or multistate • Codifying current policy that allows TTB believes that most of these appellations on wine labels, thus truthful and non-misleading proposed changes will not impact many allowing more producers and importers comparisons on labels and in products, but solicits comments on the to claim an appellation of origin for advertisements without violating the impact that the proposed changes will these wines; prohibition against ‘‘disparaging’’ have. These changes include: • Allowing the use of vintage dates statements; • Adopting consistent language with • Providing that the prohibition on wines bottled in the United States regard to what type of products against the use of flags and other that had been imported in bulk intended for exportation are exempt containers under certain conditions; from the labeling requirements of parts symbols of a government applies • whenever the label may create a Allowing the use of ‘‘estate grown’’ 4, 5, and 7. • misleading impression that the product on labels of grape wines that do not Cross-referencing CBP regulations is endorsed by, or otherwise affiliated meet all of the requirements for an that require a country of origin with, that government; ‘‘estate bottled’’ claim, but where the statement on labels of imported wines • Removing outdated provisions in producing winery grew all of the grapes and malt beverages. Such a statement is the tax laws from the labeling used to make the wine on land owned required for distilled spirits under regulations; or controlled by the producing winery, current TTB regulations. TTB does not • Providing that certain alcohol and met certain other conditions; believe this will impact many labels, as • beverage products do not meet the Allowing certain statements of such a statement is already required for definition of a wine, distilled spirit, or alcohol content, other than alcohol as a imported wines and malt beverages malt beverage under the FAA Act, and percentage of alcohol by volume, as under CBP regulations, and TTB’s must accordingly be labeled in additional information on labels already proposed regulation is simply a cross- accordance with FDA labeling containing a mandatory alcohol content reference to existing CBP requirements. regulations for food; statement; • Specifying that statements of • Codifying longstanding policy that • Superseding the Industry Circular composition and standards of identity products containing less than 0.5 that required pre-approval laboratory for distilled spirits products must be percent alcohol by volume are not testing for products containing determined based on the finished distilled spirits under the FAA Act; wormwood; product itself, without regard to • Specifying how the FAA Act • Modifying the standard of identity whether components are added to the applies to the labeling of malt beverages for whisky to provide for ‘‘white product directly or through under the penultimate paragraph of 27 whisky’’ and ‘‘unaged whisky,’’ in intermediates. This may require the U.S.C. 205(f); and response to market demand for these relabeling of certain specialty products • For purposes of aging distilled types of products; to disclose the use of wine and spirits spirits, defining an oak barrel as a • Adding ‘‘agave spirits’’ as a class of that were used in the formulation of cylindrical oak drum of approximately distilled spirits and recognizing intermediate products, but will ensure 50 gallons used to age bulk spirits. ‘‘Mezcal’’ as a type within that class; that consumers have truthful and

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adequate information about the identity into compliance with the proposed compliance with the changes in of the product. regulations, should they be finalized. conjunction with regularly scheduled • Prohibiting the use of labeling and The label redesign, printing, and label changes. administrative costs associated with advertising statements and 4. Other Changes representations that create a misleading making a labeling change are on a impression that the product is a ‘‘stock-keeping unit’’ (or ‘‘SKU’’) basis TTB is also proposing to clarify and different commodity. This may require rather than a formulation basis. To somewhat expand existing requirements the relabeling of certain products that examine costs associated with label with regard to ‘‘packaging’’ of wine, are marketed using terms associated redesign, TTB referred to the FDA’s distilled spirits, and malt beverage with different commodities, if such Labeling Cost Model,2 which containers. This includes coverings, terms create a misleading impression as incorporates assumptions about the cartons, cases, carriers, and other to the identity of the product. TTB proportion of SKUs that would be packaging used for sale at retail, but believes that this will protect consumers changed together with a scheduled label does not include shipping cartons or from misleading representations as to change. cases not intended to accompany the the identity of the product. Under the FDA’s Labeling Cost container to the consumer. Existing regulations already prohibit • Eliminating the ‘‘citrus wine’’ Model, the longer the implementation certain false or misleading designation, which TTB believes is period, the more likely it is that affected representations on packaging, and the rarely used on wine labels. industry members can coordinate new • labeling requirements with scheduled existing wine and distilled spirits Codifying in the regulations that regulations already require certain grape wine and fruit wine must meet the labeling changes. This leads to cost estimates that fall significantly as the mandatory information on closed standards for ‘‘natural wine’’ under the ‘‘opaque’’ individual coverings or IRC. time allowed for the new labeling requirements increases. In other words, containers. For the reasons set forth in • Defining a distillation as a single the longer the period of time industry is the preamble, the proposed rule run through a pot still or one run given to comply with the new labeling expands this requirement to include through a single distillation column of requirements, the lower the costs. malt beverages and to require that a column (reflux) still. Although this As previously mentioned, TTB does ‘‘closed packaging’’ of wine, distilled change is clarifying in nature, it may not believe that the changes proposed spirits, and malt beverages bear all the impact labels that currently claim that by this notice would have a significant mandatory information required on the the spirits have been distilled for a impact on many industry members. To label. The term ‘‘closed packaging’’ certain number of times, but use a the extent that some labels may have to would include sealed opaque coverings different definition of ‘‘distillation.’’ and cases. Packaging is not considered • be revised to comply with the proposed Revising the current requirement changes, TTB believes that the vast closed if the consumer could view all that certain whisky products distilled in majority of industry members that the mandatory information on the label the United States must include the State would be affected by these changes by merely lifting the container up, or if of distillation on the label by providing would be able to coordinate labeling the packaging is transparent or designed that a bottling address within the State changes as a result of the proposed in a way that the mandatory information does not suffice unless it includes a regulatory requirements with their on the label can be easily read by the representation as to distillation; consumer without having to open, rip, • scheduled labeling changes. Requiring that statements of The FDA model assumes that for a untie, unzip or otherwise manipulate composition for distilled spirits list the three-year delayed compliance date, the package. This requirement would spirits or wine used in the manufacture required modifications to 100 percent of also be subject to the three-year delayed of the distilled spirits in order of brand name product labels and 67 compliance date. predominance. This may require percent of private product labels can be TTB believes that alcohol beverage changes to some labels, but will provide coordinated with regularly scheduled producers who use outer packaging consumers with more clear information label changes. Thus, according to this update their packaging more than once about the composition of distilled model, there would be no additional every three years, similar to labels. The spirits specialty products. costs for branded products; however three-year delayed compliance date will • Requiring distilled spirits cocktails there may be incremental relabeling, give producers the opportunity to use to bear a full statement of composition printing, and administrative costs for 33 up existing stocks of packaging. In instead of an abbreviated one that just percent of the private label SKUs addition, outer packaging is typically lists the types of spirits used in the because their producers may not be able large enough to accommodate the manufacture of the cocktail. This may to coordinate the required changes with mandatory information. TTB solicits require changes to some labels, but will their regularly scheduled labeling comments on the impact that this provide consumers with better changes. proposed change would have on information about the identity of the TTB does not know how many existing packaging materials. product. entities, large or small, would be 5. Recordkeeping • Requiring whisky (other than affected by the proposed changes to Tennessee Whisky) that meets the labeling requirements. However, the TTB is proposing to provide further standard for a type of whisky to be Bureau estimates that these changes will details in the proposed labeling and designated with that type name, rather affect only a small percentage of current advertising regulations regarding than as ‘‘whisky.’’ TTB does not believe labels. Thus, TTB expects that the recordkeeping and substantiation that this will impact many products, but proposed changes would not affect requirements under the FAA Act for some labels may have to be changed. many labels, and also that the three-year bottlers and importers. Current regulations (27 CFR 4.51, 5.55, and 7.42) 3. Delayed Compliance Date delayed compliance date would allow most affected entities to come into require bottlers holding an original or As mentioned earlier in this duplicate original of a COLA or a document, TTB is proposing to give all 2 http://www.fda.gov/ohrms/dockets/dockets/ certificate of exemption to exhibit such regulated entities three years to come 04n0382/04n-0382-bkg0001-Tab-05-01-vol1.pdf. certificates, upon demand, to a duly

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authorized representative of the United in this manner in the ordinary course of advertisements in response to changes States Government. Current regulations their business, but seeks comments on to the regulations. TTB will carefully (27 CFR 4.40, 5.51, and 7.31) also the impact of this proposal. consider all comments on these issues require importers to provide a copy of The proposed regulations also set before proceeding with any changes. the applicable COLA upon the request forth specific substantiation In conclusion, while the industries of the appropriate TTB officer or a requirements, which are new to the affected by the proposed rule include a customs officer. However, these regulations, but which reflect TTB’s substantial number of small entities, the regulations do not state how long current expectations as to the level of effects of the changes in this proposed industry members should retain their evidence industry members should have rule are likely to be small and positive. COLAs. Furthermore, since these to support labeling claims. The Making the regulations easier to regulations were originally drafted, TTB proposed regulations provide that all understand and comply with will has implemented the electronic filing of claims, whether implicit or explicit, promote compliance, and liberalizing applications for label approval. Now, must have a reasonable basis in fact. changes will give all regulated parties over 90 percent of new applications for Claims that contain express or implied additional options for complying with label approval are submitted statements regarding the amount of the regulations or undertaking new lines electronically, and the rest are support for the claim (e.g., ‘‘tests of business. Most of the restrictive processed electronically by TTB. provide,’’ or ‘‘studies show’’) must have changes TTB is proposing apply to Industry members have asked for the level of substantiation that is labels, and TTB expects that small clarification as to whether they have to claimed. entities will be able to comply with retain paper copies of certificates that Furthermore, the proposed them in the course of their normal were processed electronically. Finally, regulations provide for the first time business cycle. Producers of alcohol because industry members may make that any labeling claim that does not beverages must already keep records in certain specified revisions to approved have a reasonable basis in fact, or the ordinary course of business; the labels without obtaining a new COLA, it cannot be adequately substantiated proposed rule would clarify what is important that the industry members upon the request of the appropriate TTB recordkeeping TTB expects from keep track of which label approval they officer, will be considered misleading. regulated entities, and the proposed are using when they make such The regulations in subpart H are recordkeeping requirements do not go revisions. similarly amended to include the same beyond what could reasonably be Accordingly, the proposed regulations requirement. TTB believes that this expected based on the statute of provide that, upon request by the provision, which is very similar to the limitations for criminal enforcement of appropriate TTB officer, bottlers and Federal Trade Commission’s policy on the FAA Act. importers must provide evidence of substantiation of advertising claims, label approval for a label used on an will clarify that industry members are 6. Certification alcohol beverage container that is responsible for ensuring that all labeling In accordance with the Regulatory subject to the COLA requirements of the and advertising claims have adequate Flexibility Act (5 U.S.C. 601 et seq.), applicable part. This requirement may substantiation. See ‘‘FTC Policy TTB certifies that this proposed rule, if be satisfied by providing original Statement Regarding Advertising promulgated, will not have a significant COLAs, photocopies or electronic Substantiation’’ (Appended to economic impact on a substantial copies of COLAs, or records identifying Thompson Medical Co., 104 F.T.C. 648, number of small entities. The proposed the TTB identification number assigned 839 (1984), aff’d, 791 F.2d 189 (D.C. Cir. rule will not impose, or otherwise to the COLA. Where labels on 1986), cert. denied, 479 U.S. 1086 cause, a significant increase in containers reflect revisions to the (1987)). TTB also believes that the reporting, recordkeeping, or other approved label that have been made in records necessary to substantiate label compliance burdens on a substantial compliance with allowable revisions and advertising claims are already number of small entities. The proposed authorized on the COLA form or retained by industry members in the rule is not expected to have significant otherwise authorized by TTB, the bottler ordinary course of business. secondary or incidental effects on a or importer must be able to identify the TTB also proposes to require the use substantial number of small entities. COLA covering the product, upon of TTB Form 5100.51 for the submission Accordingly, a regulatory flexibility request by the appropriate TTB officer. of formulas under parts 4, 5, and 7, analysis is not required. Pursuant to 26 Bottlers and importers must be able to rather than allowing other forms or U.S.C. 7805(f), TTB will submit the provide this information for a period of letterhead statements. Because of the proposed regulations to the Chief five years from the date the products growing use of online formula Counsel for Advocacy of the Small covered by the COLAs were removed submissions and because industry Business Administration for comment from the bottler’s premises or from members may find that use of this form on the impact of the proposed customs custody, as applicable. is easier than submitting letterhead regulations on small businesses. TTB believes that five years is a applications, TTB believes that this will reasonable period of time for record assist in the standardization of formula B. Executive Order 12866 retention because there is a five-year information. It has been determined that this notice statute of limitations for criminal Finally, TTB is also asking for is not a significant regulatory action as violations of the FAA Act. TTB notes comments on several issues that are defined in Executive Order 12866 of that the proposed rule does not require discussed in the proposal but that are September 30, 1993. Therefore a industry members to retain paper copies not the subject of any specific proposed regulatory assessment is not necessary. of each COLA; they should simply be regulatory changes. TTB especially able to track a particular removal to a welcomes comments from small entities C. Paperwork Reduction Act particular COLA, and they may rely on on these issues. Small entities may have This proposed rule contains ten electronic copies of COLAs, including found market niches making products information collections, old and new. copies contained in the TTB Public that could be affected by these changes. Nine of the collections of information COLA Registry. TTB believes that They may also have fewer resources to contained in the regulatory sections industry members already retain records change existing products, labels, or affected by this proposed rule have been

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previously reviewed and approved by §§ 4.211, 4.212, 5.211, 5.212, 7.211, • Labels applied to alcohol beverage the Office of Management and Budget 7.212, and 14.4. containers are covered by a COLA; and (OMB) in accordance with the The new recordkeeping requirement • Claims made on the labels of Paperwork Reduction Act of 1995 (PRA, in proposed §§ 4.211, 5.211, and 7.211 alcohol beverage containers and claims 44 U.S.C. 3507) and assigned control provides that, upon request by the made in advertisements for alcohol numbers 1513–0020, 1513–0046, 1513— appropriate TTB officer, bottlers and beverages are truthful, accurate, and not 0064, 1513–0084, 1513–0085, 1513– importers must provide evidence of misleading and do not contain any 0087, 1513–0111, 1513–0121 and 1513– label approval for a label used on an prohibited practices. 0122. The specific regulatory sections in alcohol beverage container that is The retention requirement for records this proposed rule that contain subject to the COLA requirements of the the certificate holder must maintain of approved collections of information are applicable part. This requirement may other importers authorized to use its §§ 4.21–4.28, 4.30, 4.62, 4.63, 4.81–4.98, be satisfied by providing original COLA is five years from the date of the 4.121–4.136, 5.21–5.27, 5.28, 5.30, 5.62, COLAs, photocopies or electronic authorization. The retention 5.63, 5.81–5.90, 5.121–5.130, 5.192– copies of COLAs, or records identifying requirement for records identifying each 5.194, 7.21, 7.22, 7.24–7.27, 7.28, 7.63, the TTB identification number assigned COLA is five years after the COLA is last 7.66, 7.67, 7.81–7.85, 7.87, 7.121–7.132, to the COLA. Where labels on used to remove a product from the 14.6, 14.12, 14.14, 14.15, 14.16, and containers reflect revisions to the bottler’s premises or from customs 14.17. In this proposed rule, TTB is not approved label that have been made in custody, as applicable. The retention proposing any changes to eight of the compliance with allowable revisions requirement for records substantiating nine current information collection or authorized on the COLA form or claims made in advertisements is five recordkeeping requirements of, or otherwise authorized by TTB, the bottler years from the time the advertisement burdens associated with, these existing or importer must be able to identify the was last disseminated or published. information collections. COLA covering the product. Bottlers TTB believes that all these records are TTB is amending OMB control and importers are required to keep currently maintained during the usual number 1513–0087 to include proposed records identifying each COLA for a and customary course of business. regulations in §§ 4.62, 5.62, and 7.62, period of five years from the date the Estimated number of respondents: which provide that closed packaging, products covered by the COLA were 10,982. including sealed opaque coverings, removed from the bottler’s premises or Estimated average total annual cartons, cases, carriers, or other from customs custody, as applicable. burden hours: 1 (one). packaging used for sale at retail, must The new recordkeeping requirement The new and revised recordkeeping include all mandatory information in proposed §§ 4.212, 5.212, 7.212, and requirements have been submitted to required to appear on the label. This 14.4 sets forth specific substantiation the OMB for review. Comments on these proposed requirement is consistent with requirements that apply to any claim new and revised recordkeeping existing regulations in §§ 4.38a and 5.41 made on any label or container subject requirements should be sent to OMB at for wine and distilled spirits, to the requirements of part 4, 5, or 7, or Office of Management and Budget, respectively, but is new in part 7 for any claim made in an advertisement Attention: Desk Officer for the malt beverages. TTB believes this subject to part 14. These substantiation Department of the Treasury, Office of requirement is necessary to protect the requirements are new to the regulations, Information and Regulatory Affairs, consumer. TTB does not believe that but they reflect TTB’s current Washington, DC 20503 or by email to this proposal will increase the estimated expectations as to the level of evidence [email protected]. A burden of this information collection that industry members should have to copy should also be sent to TTB by any because the required information is support labeling claims. Proposed of the methods previously described. already collected and disclosed for the §§ 4.212, 5.212, and 7.212 provide that Comments on the information purposes of labeling under OMB control the appropriate TTB officer may request collections should be submitted no later number 1513–0087. TTB also believes that bottlers and importers provide than January 25, 2019. that most malt beverage industry evidence that labeling claims are TTB specifically requests comments members currently place all mandatory adequately substantiated at any time concerning: information that is required to appear within five years from the time the • Whether the proposed on the label on closed packages. Thus, alcohol beverage was removed from the recordkeeping collections are necessary TTB believes that the current burden bottling premises or from customs for the proper performance of the hours for OMB control number 1513– custody, as applicable. Proposed functions of TTB, including whether the 0087, which are set forth below, will not § 14.4(c) provides that the appropriate information will have practical utility; change. TTB officer may request that the • How to enhance the quality, utility, Estimated number of respondents: responsible advertiser provide evidence and clarity of the information to be 9,552. that advertising claims are adequately collected; Estimated average total annual substantiated at any time within a • How to minimize the burden of burden hours: 9,552. period of five years from the time the complying with the collections of In this proposed rule, TTB also is advertisement was last disseminated or information; and proposing new recordkeeping published. Estimates of capital and start-up costs requirements, and TTB is seeking OMB TTB believes that these COLA use and and costs of operation, maintenance, approval of these requirements under label and advertising claim and purchase of services to maintain one OMB control number. An agency substantiation records are necessary to records. may not conduct or sponsor, and a ensure that: person is not required to respond to, a • Importers using a COLA that was VI. Drafting Information collection of information unless it not issued to them have received Christopher M. Thiemann and Kara T. displays a valid OMB control number. authorization to use the COLA from the Fontaine of the Regulations and Rulings The proposed new recordkeeping person to whom the COLA was issued Division drafted this document, along requirements are contained in proposed (certificate holder); with several other employees of the

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Alcohol and Tobacco Tax and Trade 4.6 Products produced as wine that are not 4.67 Name and address for domestically Bureau. covered by this part. bottled wine that was bottled after 4.7 Other TTB labeling regulations that importation. List of Subjects apply to wine. 4.68 Name and address for wine that was 4.8 Wine for export. imported in a container. 27 CFR Part 4 4.9 Compliance with Federal and State 4.69 Country of origin. Advertising, Alcohol and alcoholic requirements. 4.70 Net contents. beverages, Customs duties and 4.10 Other related regulations. Subpart F—Restricted Labeling Statements 4.11 Forms. inspection, Food additives, Imports, 4.81 General. International agreements, Labeling, 4.12 Delegations of the Administrator. Packaging and containers, Reporting Subpart B—Certificates of Label Approval Food Allergen Labeling and recordkeeping requirements, Trade and Certificates of Exemption From Label 4.82 Voluntary disclosure of major food practices, Wine. Approval allergens. 4.83 Petitions for exemption from major 27 CFR Part 5 Requirements for Wine Bottled in the United food allergen labeling. States Production Claims Advertising, Alcohol and alcoholic 4.21 Requirement for certificate of label beverages, Customs duties and approval (COLAs) for wine bottled in the 4.84 Use of the term ‘‘organic.’’ 4.85 Environmental, sustainability, and inspection, Food additives, Grains, United States. similar statements. Imports, International agreements, 4.22 Rules regarding certificates of label 4.86 Use of TTB permit numbers on labels. approval (COLAs) for wine bottled in the Labeling, Liquors, Packaging and 4.87 Use of vineyard, orchard, farm, or United States. containers, Reporting and recordkeeping ranch name as additional information. requirements, Trade practices. 4.23 Application for exemption from label approval for wines bottled in the United Appellations of Origin for Grape Wine 27 CFR Part 7 States. 4.88 Appellations of origin for grape wine in general. Advertising, Alcohol and alcoholic Requirements for Wine Imported in 4.89 Eligibility for the use of an appellation beverages, Beer, Customs duties and Containers of origin for grape wine. inspection, Food additives, Imports, 4.24 Certificates of label approval (COLAs) 4.90 Multicounty and multistate Labeling, Packaging and containers, for wine imported in containers. appellations of origin for grape wine. Reporting and recordkeeping 4.25 Rules regarding certificates of label 4.91 Viticultural areas. requirements, Trade practices. approval (COLAs) for wine imported in Claims About Grape Wine containers. 27 CFR Part 14 4.92 Estate bottled. Administrative Rules 4.93 Estate grown. Advertising, Alcohol and alcoholic 4.94 Claims on grape wine labels for beverages, Beer, Consumer protection, 4.27 Presenting Certificates of Label Approval (COLAs) to Government viticultural practices that result in sweet Liquors, Packaging and containers, officials. wine. Trade practices, Wine. 4.28 Formulas, samples, and 4.95 Vintage date. 27 CFR Part 19 documentation. Appellations of Origin for Fruit Wine, 4.29 Personalized labels. Agricultural Wine, and Rice Wine Administrative practice and 4.30 Certificates of origin, identity, and 4.96 Appellations of origin for fruit wine, procedure, Alcohol and alcoholic proper cellar treatment of wine. agricultural wine, and rice wine in beverages, Authority delegations Subpart C—Alteration of Labels, Relabeling, general. (Government agencies), Caribbean Basin and Adding Information to Containers 4.97 Eligibility requirements for use of an initiative, Chemicals, Claims, Customs appellation of origin for fruit wine, 4.41 Alteration of labels. duties and inspection, Electronic funds agricultural wine, and rice wine. 4.42 Authorized relabeling activities by 4.98 Multicounty and multistate transfers, Excise taxes, Exports, Gasohol, proprietors of bonded wine premises and Imports, Labeling, Liquors, Packaging appellations of origin for fruit wine, importers. agricultural wine, and rice wine. and containers, Puerto Rico, Reporting 4.43 Relabeling activities that require and recordkeeping requirements, separate written authorization from TTB. Subpart G—Prohibited Labeling Practices Research, Security measures, Spices and 4.44 Adding a label or other information to 4.101 General. flavorings, Stills, Surety bonds, a container that identifies the 4.102 False or untrue statements. Transportation, Vinegar, Virgin Islands, wholesaler, retailer, or consumer. 4.103 Obscene or indecent depictions. Warehouses, Wine. Subpart D—Label Standards Subpart H—Labeling Practices That Are Authority and Issuance 4.51 Firmly affixed requirements. Prohibited If They Are Misleading 4.52 Legibility and other requirements for 4.121 General. For the reasons discussed in the mandatory information on labels. 4.122 Misleading statements or preamble, TTB proposes to amend 27 4.53 Type size of mandatory information. representations. CFR, chapter I as follows: 4.54 Visibility of mandatory information. 4.123 Guarantees. ■ 1. Revise part 4 to read as follows: 4.55 Language requirements. 4.124 Disparaging statements. 4.56 Additional information. 4.125 Tests or analyses. 4.126 Depictions of government symbols. PART 4—LABELING OF WINE Subpart E—Mandatory Label Information 4.127 Depictions simulating government Sec. 4.61 What constitutes a label for purposes stamps or relating to supervision. 4.0 Scope. of mandatory information. 4.128 Claims related to distilled spirits or 4.62 Packaging (cartons, coverings, and malt beverages. Subpart A—General Provisions cases). 4.129 Health-related statements. 4.1 Definitions. 4.63 Mandatory label information. 4.130 Appearance of endorsement. 4.2 Territorial extent. 4.64 Brand name. 4.131 Use of the word ‘‘importer’’ or similar 4.3 General requirements and prohibitions 4.65 Alcohol content. words. under the FAA Act. 4.66 Name and address for domestically 4.132 [Reserved] 4.4 [Reserved] bottled wine that was wholly fermented 4.133 Claims regarding terms defined or 4.5 Wines covered by this part. in the United States. authorized by this part.

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4.134 Statements related to dates or ages. Subpart M—Penalties and Compromise of under the condition that the product 4.135 Indications of origin. Liability will under no circumstances be sold, 4.136 Use of a varietal name, type 4.221 Criminal penalties. offered for sale, shipped, delivered for designation of varietal significance, 4.222 Conditions of basic permit. shipment, or otherwise introduced by semi-generic name, or geographic 4.223 Compromise. the applicant, directly or indirectly, into distinctive designation. Subpart N—Paperwork Reduction Act interstate or foreign commerce. 4.137 Terms relating to intoxicating Certificate of label approval (COLA). qualities. 4.231 OMB control numbers assigned under the Paperwork Reduction Act. A certificate issued on TTB Form Subpart I—The Standards of Identity for 5100.31 that authorizes the bottling of Wine Authority: 27 U.S.C. 205, unless otherwise wine, distilled spirits, and malt noted. 4.141 The standards of identity in general. beverages, or the removal of bottled 4.142 Still grape wine—class and type § 4.04.0 Scope. wine, distilled spirits, and malt designation. This part sets forth requirements that beverages from customs custody for 4.143 Sparkling grape wine—class and type apply to the labeling and packaging of introduction into commerce, as long as designation. wines in containers, including the product bears labels identical to the 4.144 Carbonated grape wine—class and requirements for label approval and labels appearing on the face of the type designation. certificate, or labels with changes 4.145 Fruit wine—class and type rules regarding mandatory, regulated, and prohibited labeling statements. authorized by TTB on the certificate or designation. otherwise. 4.146 Agricultural wine—class and type Subpart A—General Provisions Container. Any can, bottle, box with designation. an internal bladder, cask, keg, barrel, or 4.147 Aperitif—class and type designation. § 4.14.1 Definitions. other closed receptacle, in any size or 4.148 Rice wine—class and type When used in this part and on forms designation. material, that is for use in the sale of 4.149 Retsina wine—designation. prescribed under this part, the following wine at retail. See subpart K of this part 4.150 Imitation and substandard or other terms have the meaning assigned to for rules regarding authorized standards than standard wine—designation. them in this section, unless the terms of fill for containers. 4.151 Statements of composition. appear in a context that requires a County. Includes a county or a 4.152–4.153 [Reserved] different meaning. Any other term political subdivision recognized by the Cellar Treatment and Alteration of Class and defined in the Federal Alcohol State as a county equivalent. Type Administration Act (FAA Act) and used Customs officer. An officer of U.S. in this part has the same meaning Customs and Border Protection (CBP) or 4.154 Cellar treatment and alteration of any agent or other person authorized by class or type. assigned to it by the FAA Act. 4.155 [Reserved] Administrator. The Administrator, law to perform the duties of such an Alcohol and Tobacco Tax and Trade officer. Grape Type Labeling Bureau, Department of the Treasury. Distinctive or fanciful name. A 4.156 Varietal (grape type) labeling as type American. A descriptive term descriptive name or phrase chosen to designations. referring to the 50 States of the United identify a wine product on the label. It 4.157 Type designations of varietal States, the District of Columbia, and the does not include a brand name, class or significance for American wines. Commonwealth of Puerto Rico. type designation, or statement of 4.158 [Reserved] Appropriate TTB officer. An officer or composition. Generic, Semi-Generic, and Non-Generic employee of the Alcohol and Tobacco FAA Act. The Federal Alcohol Designations of Geographic Significance Tax and Trade Bureau (TTB) authorized Administration Act. 4.173 Generic designations of geographic to perform any function relating to the Fully finished. Ready to be bottled, significance. administration or enforcement of this except that it may be further subject to 4.174 Semi-generic designations of part by the current version of TTB Order the practices authorized in § 4.154(c) geographic significance. 1135.4, Delegation of the and blending that does not result in an 4.175 Nongeneric designation of geographic Administrator’s Authorities, in 27 CFR alteration of class or type under significance and nongeneric designations part 4, Labeling of Wine. § 4.154(b). that are distinctive designations of Bottler. Any producer or blender of Gallon. A U.S. gallon of 231 cubic specific grape wines. wine, proprietor of bonded wine inches at 60 degrees Fahrenheit. 4.176–4.177 [Reserved] premises, or proprietor of a taxpaid Grape wine. When used without Subpart J—American Grape Variety Names wine bottling house, who places wine in further modification, the term ‘‘grape 4.191 Approval of grape variety names. containers. wine’’ includes still grape wine, 4.192 List of approved names. Brand name. The name under which sparkling grape wine, and carbonated 4.193 Alternative names permitted for a wine or line of wine is sold. grape wine. As set forth in § 4.142, temporary use. Brix. The quantity of dissolved solids however, the term ‘‘grape wine’’ by expressed as grams of sucrose in 100 itself may be used to designate only still Subpart K—Standards of Fill and grams of solution (percent by weight of grape wine. Authorized Container Sizes sugar) at 68 degrees Fahrenheit (20 Interstate or foreign commerce. 4.201 General. degrees Celsius). Commerce between any State and any 4.202 Standard wine containers. Certificate holder. The permittee or place outside of that State or commerce 4.203 Standards of fill (container sizes). brewer whose name, address, and basic within the District of Columbia or 4.204 Aggregate packaging to meet standard permit number, plant registry number, commerce between points within the of fill requirements. or brewer’s notice number appears on same State but through any place Subpart L—Recordkeeping and an approved TTB Form 5100.31. outside of that State. Substantiation Requirements Certificate of exemption from label Liter or litre. A metric unit of capacity 4.211 Recordkeeping requirements— approval. A certificate issued on TTB equal to 1,000 cubic centimeters or certificates. Form 5100.31, which authorizes the 1,000 milliliters (mL) of wine at 20 4.212 Substantiation requirements. bottling of wine or distilled spirits, degrees Celsius (68 degrees Fahrenheit),

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and equivalent to 33.814 U.S. fluid regulations in subpart B of this part, any (e) Bottled in accordance with this ounces. bottler of wine, and any person who part. In order to be bottled in Net contents. The amount, by volume, removes wine in containers from accordance with the regulations in this of wine held in a container. customs custody for sale or any other part, the wine must be bottled in Permittee. Any person holding a basic commercial purpose, is required to first authorized standards of fill in permit under the FAA Act. obtain from TTB a COLA covering the containers that meet the requirements of Person. Any individual, corporation, label(s) on each container. subpart K. partnership, association, joint-stock (b) Alteration, mutilation, destruction, company, business trust, limited obliteration, or removal of labels. § 4.44.4 [Reserved] liability company, or other form of Subject to the requirements and § 4.54.5 Wines covered by this part. business enterprise, including a exceptions set forth in the regulations in The regulations in this part apply to receiver, trustee, or liquidating agent subpart C of this part, it is unlawful to wine containing not less than 7 percent and including an officer or employee of alter, mutilate, destroy, obliterate, or and not more than 24 percent alcohol by any agency of a State or political remove labels on wine containers. This volume. subdivision of a State. prohibition applies to any person, Pure condensed must. The including retailers, holding wine for § 4.64.6 Products produced as wine that dehydrated juice or must of sound, ripe sale in interstate or foreign commerce or are not covered by this part. grapes, or other fruit or agricultural any person holding wine for sale after Certain wine products do not fall products, concentrated to not more than shipment in interstate or foreign within the definition of a ‘‘wine’’ under ° 80 brix, the composition thereof commerce. the FAA Act and are thus not subject to (c) Labeling requirements for wine. It remaining unaltered except for removal this part. See § 4.7 for related TTB is unlawful for any person engaged in of water. regulations that may apply to these business as a producer, blender, Restored pure condensed must. Pure products. See §§ 24.10 and 27.11 of this importer, or wholesaler of wine, directly condensed must to which has been chapter for the definition of ‘‘wine’’ or indirectly, or through an affiliate, to added an amount of water not exceeding under the Internal Revenue Code. sell or ship, or deliver for sale or the amount removed in the dehydration (a) Products containing less than 7 shipment, or otherwise introduce or process. percent alcohol by volume. The receive, in interstate or foreign State. One of the 50 States of the regulations in this part do not cover commerce, or remove from customs United States, the District of Columbia, products that would otherwise meet the custody, any wine in containers, unless or the Commonwealth of Puerto Rico. definition of wine except that they the wine is bottled in containers, and Total solids. The degrees Brix of the contain less than 7 percent alcohol by the containers are marked, branded, and dealcoholized wine restored to its volume. Bottlers and importers of labeled, in conformity with the original volume with water. alcohol beverages that do not fall within TTB. The Alcohol and Tobacco Tax regulations in this part. the definition of malt beverages, wine, and Trade Bureau of the Department of (d) Labeled in accordance with this or distilled spirits under the FAA Act the Treasury. part. In order to be labeled in should refer to the applicable labeling United States (U.S.). The 50 States, accordance with the regulations in this regulations for foods issued by the U.S. the District of Columbia, and the part, a container of wine must be in Food and Drug Administration. See 21 Commonwealth of Puerto Rico. compliance with the following CFR part 101. Wine. Section 117(a) of the Federal requirements: Alcohol Administration Act (27 U.S.C. (1) It must bear one or more labels (b) Products containing more than 24 211(a)) defines ‘‘wine’’ as any of the meeting the standards for ‘‘labels’’ set percent alcohol by volume. Products following products for nonindustrial use forth in subpart D of this part; that would otherwise meet the that contain not less than 7 percent and (2) One or more of the labels on a definition of wine except that they not more than 24 percent alcohol by container must include the mandatory contain more than 24 percent alcohol by volume: information set forth in subpart E of this volume are classified as distilled spirits (1) Wine as defined in section 610 and part; and must be labeled in accordance with section 617 of the Revenue Act of 1918 (3) Claims on any label(s), container, part 5 of this chapter. or packaging (as defined in § 4.81) must (26 U.S.C. 5381–5392); and § 4.74.7 Other TTB labeling regulations (2) Other alcoholic beverages not so comply with the rules for regulated that apply to wine. label statements, as applicable, set forth defined, but made in the manner of In addition to the regulations in this wine, including sparkling and in subpart F of this part; (4) Statements or any other part, wine must also comply with the carbonated wine, wine made from TTB labeling regulations in paragraphs condensed grape must, wine made from representations on any wine label, container, or packaging (as defined in (a) and (b) of this section: other agricultural products than the (a) Health warning statement. juice of sound, ripe grapes, imitation §§ 4.101 and 4.121) may not violate the regulations in subparts G and H of this Alcoholic beverages, including wine, wine, compounds sold as wine, that contain at least one-half of one vermouth, cider, perry, and sake´. part regarding certain practices on labeling of wine; percent alcohol by volume, must be § 4.24.2 Territorial extent. (5) The class and type designation on labeled with a health warning statement The provisions of this part apply to the label(s), as well as any designation in accordance with the Alcoholic the 50 States, the District of Columbia, appearing on containers or packaging, Beverage Labeling Act of 1988 (ABLA). and the Commonwealth of Puerto Rico. must comply with the standards of The regulations implementing the identity set forth in subpart I of this ABLA are contained in 27 CFR part 16. § 4.34.3 General requirements and part; and (b) Internal Revenue Code prohibitions under the FAA Act. (6) The wine in the container must requirements. The labeling and marking (a) Certificates of label approval not be adulterated within the meaning requirements for wine under the (COLAs). Subject to the requirements of the Federal Food, Drug, and Cosmetic Internal Revenue Code are found in 27 and exceptions set forth in the Act. CFR part 24, subpart L (for domestic

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wine premises) and 27 CFR part 27, (4) 27 CFR Part 13—Labeling § 4.12 Delegations of the Administrator. subpart E (for imports). Proceedings; Most of the regulatory authorities of (5) 27 CFR Part 14—Advertising of the Administrator contained in this part § 4.84.8 Wine for export. Alcohol Beverage Products; are delegated to ‘‘appropriate TTB Wine that is exported in bond without (6) 27 CFR Part 16—Alcoholic officers.’’ To find out which officers payment of tax directly from a bonded Beverage Health Warning Statement; have been delegated specific authorities, wine premises or from customs custody (7) 27 CFR Part 24—Wine; see the current version of TTB Order is not subject to this part. For purposes (8) 27 CFR Part 26—Liquors and 1135.4, Delegation of the of this section, direct exportation in Articles From Puerto Rico and the Administrator’s Authorities in 27 CFR bond does not include exportation after Virgin Islands; part 4, Labeling of Wine. Copies of this wine has been removed for (9) 27 CFR Part 27—Importation of order can be obtained by accessing the consumption or sale in the United Distilled Spirits, Wines, and Beer; TTB website (https://www.ttb.gov) or by (10) 27 CFR Part 28—Exportation of States, with appropriate tax mailing a request to the Alcohol and determination or payment. Alcohol; and (11) 27 CFR Part 71—Rules of Practice Tobacco Tax and Trade Bureau, § 4.94.9 Compliance with Federal and in Permit Proceedings. National Revenue Center, 550 Main State requirements. (b) Other Federal regulations. The Street, Room 8002, Cincinnati, OH (a) General. Compliance with the regulations listed in paragraphs (b)(1) 45202. requirements of this part relating to the through (9) of this section issued by Subpart B—Certificates of Label labeling and bottling of wine does not other Federal agencies also may apply: Approval and Certificates of (1) 7 CFR Part 205—National Organic relieve industry members from Exemption From Label Approval responsibility for complying with other Program; applicable Federal and State (2) 19 CFR Part 11—Packing and Requirements for Wine Bottled in the requirements, including but not limited Stamping; Marking; United States to those highlighted in paragraphs (b) (3) 19 CFR Part 102—Rules of Origin; and (c) of this section. (4) 19 CFR Part 134—Country of § 4.21 Requirement for certificates of label approval (COLAs) for wine bottled in the (b) Ingredient safety. While it remains Origin Marking; (5) 21 CFR Part 1—General United States. the responsibility of the industry Enforcement Provisions, Subpart H, (a) This section applies to wine member to ensure that any ingredient Registration of Food Facilities, and bottled in the United States, outside of used in production of wine complies Subpart I, Prior Notice of Imported customs custody. fully with all applicable U.S. Food and Food; (b) No person may bottle wine Drug Administration (FDA) regulations (6) 21 CFR Parts 70–82, which pertain without first applying for and obtaining pertaining to the safety of food to food and color additives; a certificate of label approval issued by ingredients and additives, the (7) 21 CFR Part 101—Food Labeling; the appropriate TTB officer. This appropriate TTB officer may at any time (8) 21 CFR Part 110—Current Good requirement applies to wine produced request documentation to establish such Manufacturing Practice in and bottled in the United States and to compliance. As set forth in § 4.3(d), Manufacturing Packing, or Holding wine imported in bulk and bottled in wines that are adulterated under the Human Food; and the United States. Bottlers may obtain Federal Food, Drug, and Cosmetic Act (9) 21 CFR Parts 170–189, which an exemption from this requirement are not labeled in accordance with this pertain to food additives and secondary only if they satisfy the conditions set part. direct food additives. forth in § 4.23. (c) Containers. While it remains the responsibility of the industry member to § 4.11 Forms. § 4.22 Rules regarding certificates of label ensure that containers are made of (a) General. TTB prescribes and approval (COLAs) for wine bottled in the suitable materials that comply with all makes available all forms required by United States. applicable FDA health and safety this part. Any person completing a form (a) What a COLA authorizes. An regulations for the packaging of must provide all of the information approved TTB Form 5100.31 authorizes beverages for consumption, the required by each form as indicated by the bottling of a wine covered by the appropriate TTB officer may at any time the headings on the form and the COLA as long as the container bears request documentation to establish such instructions for the form. Each form labels identical to the labels appearing compliance. must be filed in accordance with this on the face of the COLA, or labels with part and the instructions for the form. changes authorized by TTB on the § 4.10 Other related regulations. (b) Electronically filing forms. The COLA or otherwise. The list of (a) TTB regulations. Other TTB forms required by this part can be filed allowable changes can be found at regulations that relate to wine are listed electronically by using TTB’s online https://www.ttb.gov. in paragraphs (a)(1) through (11) of this filing systems: COLAs Online and (b) What a COLA does not do. Among section: Formulas Online. Anyone who intends other things, the issuance of a COLA (1) 27 CFR Part 1—Basic Permit to use one of these online filing systems does not: Requirements Under the Federal must first register to use the system by (1) Confer trademark protection; Alcohol Administration Act, accessing the TTB website at https:// (2) Relieve the certificate holder from Nonindustrial Use of Distilled Spirits www.ttb.gov. its responsibility to ensure that all and Wine, Bulk Sales and Bottling of (c) Obtaining paper forms. Forms ingredients used in the production of Distilled Spirits; required by this part are available for the wine comply with applicable (2) 27 CFR Part 9—American printing through the TTB website requirements of the U.S. Food and Drug Viticultural Areas; (https://www.ttb.gov) or by mailing a Administration with regard to (3) 27 CFR Part 12—Foreign request to the Alcohol and Tobacco Tax ingredient safety; or Nongeneric Names of Geographic and Trade Bureau, National Revenue (3) Relieve the certificate holder from Significance Used in the Designation of Center, 550 Main Street, Room 8002, liability for violations of the FAA Act, Wines; Cincinnati, OH 45202. the Alcoholic Beverage Labeling Act,

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the Internal Revenue Code, or related https://www.ttb.gov, or by using the that are required to be covered by a regulations and rulings. paper form. For procedures regarding COLA but are not labeled in conformity (i) The issuance of a COLA does not the issuance of certificates of exemption with a COLA must be relabeled, under mean that TTB has verified the accuracy from label approval, see part 13 of this the supervision and direction of of any representations or claims made chapter. customs officers, prior to their removal on the label with respect to the product (c) Labeling of wines covered by from customs custody for consumption. in the container. It is the responsibility certificate of exemption. The of the applicant to ensure that all application for a certificate of § 4.25 Rules regarding certificates of label information on the application is true approval (COLAs) for wine imported in exemption from label approval requires containers. and correct, and that all labeling that the applicant identify the State in representations and claims are truthful, which the product will be sold. As a (a) What a COLA authorizes. An accurate, and not misleading with condition of receiving exemption from approved TTB Form 5100.31 authorizes respect to the product in the container. label approval, the label covered by an the use of the labels covered by the (ii) A wine may be mislabeled even approved certificate of exemption must COLA on containers of wine, as long as when the label is covered by a COLA. include the statement ‘‘For sale in the container bears labels identical to For example, if the label on the [name of State] only.’’ See § 24.257 of the labels appearing on the face of the container contains representations that this chapter for additional labeling rules COLA, or labels with changes are false or misleading when applied to that apply to wines covered by a authorized by the form or otherwise the product in the container, the wine certificate of exemption. authorized by TTB. is not labeled in accordance with the (b) What a COLA does not do. Among regulations in this part, even if it is Requirements for Wine Imported in other things, the issuance of a COLA covered by a COLA. Containers does not: (1) Confer trademark protection; (c) When to obtain a COLA. The § 4.24 Certificates of label approval COLA must be obtained prior to (2) Relieve the certificate holder from (COLAs) for wine imported in containers. its responsibility to ensure that all bottling. No producer or blender of (a) Application requirement. Any wine, proprietor of bonded wine ingredients used in the production of person removing wine in containers the wine comply with applicable premises or proprietor of a taxpaid wine from customs custody for consumption bottling house may bottle wine, or requirements of the U.S. Food and Drug must first apply for and obtain a COLA Administration with regard to remove wine from the premises where covering the wine from the appropriate bottled, unless a COLA has been ingredient safety; or TTB officer. (3) Relieve the certificate holder from obtained. (b) Release of wine from customs (d) Application for a COLA. The liability for violations of the FAA Act, custody. Wine imported in containers is bottler may apply for a COLA by the Alcoholic Beverage Labeling Act, not eligible for release from customs submitting an application to TTB on the Internal Revenue Code, or related custody for consumption, and no person Form 5100.31, in accordance with the regulations and rulings. may remove such wine from customs instructions on the form. The bottler (i) The issuance of a COLA does not custody for consumption, unless the may apply for a COLA either mean that TTB has verified the accuracy person removing the wine has obtained electronically by accessing TTB’s online of any representations or claims made and is in possession of a COLA covering system, COLAs Online, at TTB’s website on the label with respect to the product the wine. (https://www.ttb.gov) or by submitting in the container. It is the responsibility (c) Filling requirements. If filing the paper form. For procedures of the applicant to ensure that all electronically, the importer must file regarding the issuance of COLAs, see information on the application is true with U.S. Customs and Border part 13 of this chapter. and correct and that all labeling Protection (CBP), at the time of filing the representations and claims are truthful, § 4.23 Application for exemption from customs entry, the TTB-assigned accurate, and not misleading with label approval for wines bottled in the identification number of the valid COLA respect to the product in the container. United States. that corresponds to the label on the (ii) A wine may be mislabeled even (a) Exemption. A producer or blender brand or lot of wine to be imported. If when the label is covered by a COLA. of wine, proprietor of bonded wine the importer is not filing electronically, For example, if the label on the premises, or proprietor of a taxpaid the importer must provide a copy of the container contains representations that wine bottling house may apply for COLA to CBP at the time of entry. In are false or misleading when applied to exemption from the labeling addition, the importer must provide a the product in the container, the wine requirements of this part, if the bottler copy of the applicable COLA, and proof is not labeled in accordance with the shows, to the satisfaction of the of the certificate holder’s authorization regulations in this part, even if it is appropriate TTB officer, that the wine to if applicable, upon request by the covered by a COLA. be bottled will be offered for sale only appropriate TTB officer or a customs (c) When to obtain a COLA. The within the State in which it is bottled officer. COLA must be obtained prior to the and will not be sold, offered for sale, or (d) Scope of this section. The COLA removal of wine in containers from shipped or delivered for shipment, or requirement imposed by this section customs custody for consumption. otherwise introduced, in interstate or applies only to wine that is removed for (d) Application for a COLA. The foreign commerce. sale or any other commercial purpose. person responsible for the importation (b) Application required. The bottler Wine that is imported in containers is of wine must obtain approval of the must file an application on TTB Form not eligible for a certificate of exemption labels by submitting an application to 5100.31 for exemption from label from label approval. See 27 CFR 27.49, TTB on Form 5100.31. A person may approval before bottling the wine. The 27.74, and 27.75 for labeling exemptions apply for a COLA either electronically bottler may apply for a certificate of applicable to certain imported samples by accessing TTB’s online system, exemption from label approval either of wine. COLAs Online, at TTB’s website electronically, by accessing TTB’s (e) Relabeling in customs custody. (https://www.ttb.gov) or by submitting online system, COLAs Online, at Containers of wine in customs custody the paper form. For procedures

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regarding the issuance of COLAs, see qualification will allow the certificate (b)(1) of this section is valid for multiple part 13 of this chapter. holder to add or change items on the shipments of imported wine as long as personalized label such as salutations, Administrative Rules the wine is of the same brand and class names, graphics, artwork, or type; was made by the same § 4.27 Presenting Certificates of Label congratulatory dates and names, or producer; was subjected to the same Approval (COLAs) to Government officials. event dates without applying for a new cellar treatment; and conforms to the A certificate holder must present the COLA. All of these items on statements made on the certification. original or a paper or electronic copy of personalized labels must comply with Accordingly, if the cellar treatment the appropriate COLA upon the request the regulations of this part. applied to the wine changes and a new of any duly authorized representative of (d) Changes not allowed to certification under § 27.140 of this personalized labels. Approval of an the United States Government. chapter is required, the importer must application to personalize labels does submit a new certification to TTB even § 4.28 Formulas, samples, and not authorize the addition of any documentation. information that discusses either the if a new COLA is not required. (a) Prior to or in conjunction with the alcohol beverage or characteristics of the (3) Use of certification. TTB may use review of an application for a COLA on alcohol beverage or that is inconsistent the information from a certification for TTB Form 5100.31, the appropriate TTB with or in violation of the provisions of purposes of verifying the appropriate officer may require a bottler or importer this part or any other applicable class and type designation of the wine to submit a formula, the results of provision of law or regulations. under the labeling provisions of this laboratory testing of the wine, or a part. TTB will make certifications § 4.30 Certificates of origin, identity, and sample of any wine or ingredients used submitted under paragraph (b)(1) of this in producing a wine. The appropriate proper cellar treatment of wine. (a) Certificate of origin and identity. section available to the public on the TTB officer also may request such TTB website at https://www.ttb.gov. information or samples after the Wine imported in containers is not issuance of such COLA, or in eligible for release from customs (c) Retention of certificates—wine connection with any wine that is custody for consumption, and no person imported in containers. The importer of required to be covered by a COLA. A may remove such wine from customs wine imported in containers must retain formula may be filed electronically by custody for consumption, unless that for five years following the date of the using Formulas Online, or it may be person has obtained and is in removal of the bottled wine from submitted on paper on Form 5100.51. possession of an invoice accompanied customs custody copies of the See § 4.11 for more information on by a certificate of origin issued by an certificates (and accompanying invoices, forms and Formulas Online. official duly authorized by the if required) required by paragraphs (a) (b) Upon request of the appropriate appropriate foreign government, if that and (b) of this section, and must provide TTB officer, a bottler or importer must country requires the issuance of such a them upon request of the appropriate submit a full and accurate statement of certificate for wine exported from that TTB officer or a customs officer. the contents of any container to which country. The certificate must certify as (d) Wine imported in bulk for bottling labels are to be or have been affixed, as to the identity of the wine and that the well as any other documentation on any wine has been produced in compliance in the United States. Wine that would issue pertaining to whether the wine is with the laws of the foreign country be required under paragraphs (a) and (b) labeled in accordance with this part. regulating the production of the wine of this section to be covered by a for home consumption. certificate of origin and identity and/or § 4.29 Personalized labels. (b) Certification of proper cellar a certification of proper cellar treatment (a) General. Applicants for label treatment of natural wine—(1) General. and that is imported in bulk for bottling approval may obtain permission from An importer of wine may be required to in the United States may be removed TTB to make certain changes in order to have in its possession at the time of from the premises where bottled only if personalize labels without having to release of the wine from customs the bottler possesses a certificate of resubmit labels for TTB approval. custody a certification, or may have to origin and identity and/or a certification Personalized labels may contain a comply with other conditions of proper cellar treatment of natural personal message, picture, or other prescribed in § 27.140 of this chapter, wine applicable to the wine, issued by artwork that is specific to the consumer regarding proper cellar treatment. If the appropriate entity as set forth in who is purchasing the product. For certification is required for imported paragraphs (a) and (b) of this section example, a winery may offer individual wine under § 27.140 of this chapter, the and § 27.140 of this chapter or corporate customers labels that importer must provide a copy of that respectively, applicable to the wine that commemorate an event such as a certification to TTB as follows: provides the same information as a wedding or grand opening. (i) The importer must include a copy certificate required under paragraphs (a) (b) Application. Any person who of the certification with the application intends to offer personalized labels must for a certificate of label approval (COLA) and (b) of this section and § 27.140 of submit a template for the personalized for the wine that is submitted under this chapter, would provide for like label with the application for label § 13.21 of this chapter; or wine imported in bottles. approval, and must note on the (ii) If a certification for the wine in (e) Retention of wine certificates— application a description of the specific question was not available when the wine in bulk. The bottler of wine personalized information that may importer submitted the application for imported in bulk must retain, for five change. label approval, the importer must years following the removal of such (c) Approval of personalized label. If submit a copy of the certification to the wine from the premises where bottled, the application complies with the appropriate TTB officer before the first copies of the certificates required by regulations, TTB will issue a certificate shipment of the wine is released from paragraphs (a) and (b) of this section, of label approval (COLA) with a customs custody. and must provide them upon request of qualification allowing the (2) Validity of certification. A the appropriate TTB officer. personalization of labels. The certification submitted under paragraph

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Subpart C—Alteration of Labels, from customs custody for consumption. § 4.52 Legibility and other requirements Relabeling, and Adding Information to See § 4.24(b). for mandatory information on labels. Containers (d) Relabeling after removal from (a) Readily legible. Mandatory information on labels must be readily § 4.41 Alteration of labels. customs custody. Imported wine in containers may be relabeled by the legible to potential consumers under (a) Prohibition. It is unlawful for any importer thereof after removal from ordinary conditions. person to alter, mutilate, destroy, customs custody without obtaining (b) Separate and apart. Mandatory obliterate or remove any mark, brand, or separate permission from TTB for the information on labels, except brand label on wine in containers held for sale relabeling activity, as long as the labels names, must be separate and apart from in interstate or foreign commerce, or are covered by a COLA. any additional information. This does held for sale after shipment in interstate not preclude the addition of brief or foreign commerce, except as § 4.43 Relabeling activities that require optional phrases of additional authorized by § 4.42, § 4.43, or § 4.44, or separate written authorization from TTB. information as part of the class or type as otherwise authorized by Federal law. Any persons holding wine for sale designation (such as, ‘‘premium wine’’), (b) Authorized relabeling. For the name and address statement (such purposes of the relabeling activities who need to relabel the containers but are not eligible to obtain a certificate of as, ‘‘Proudly produced and bottled by authorized by this subpart, the term ABC Winemaking Co. in Napa, CA, for ‘‘relabel’’ includes the alteration, label approval to cover the labels that they wish to affix to the containers may over 30 years’’) or other information mutilation, destruction, obliteration, or required by § 4.63(a) and (b), as long as removal of any existing mark, brand, or apply for written permission for the relabeling of wine containers. The the additional information does not label on the container, as well as the detract from the prominence of the addition of a new label (such as a sticker appropriate TTB officer may permit relabeling of wine in containers if the mandatory information. The statements that adds information about the product required by § 4.63(c) may not include or information engraved on the facts show that the relabeling is for the purpose of compliance with the additional information. container) to the container, and the (c) Contrasting background. replacement of a label with a new label requirements of this part or State law. The written application must include Mandatory information must appear in bearing identical information. a color that contrasts with the (c) Obligation to comply with other copies of the original and proposed new labels; the circumstances of the request, background on which it appears, except requirements. Authorization to relabel that if the net contents are blown into under this subpart in no way authorizes including the reason for relabeling; the number of containers to be relabeled; a glass container, they need not be the placement of labels on containers contrasting. The color of the container that do not accurately reflect the brand, the location where the relabeling will take place; and the name and address of and of the wine must be taken into bottler, identity, or other characteristics account if the label is transparent or if of the product; nor does it relieve the the person who will be conducting the relabeling operations. mandatory label information is etched, person conducting the relabeling engraved, sandblasted, or otherwise operations from any obligation to § 4.44 Adding a label or other information carved into the surface of the container comply the regulations in this part and to a container that identifies the wholesaler, or is branded, stenciled, painted, with State or local law, or to obtain retailer, or consumer. printed, or otherwise directly applied permission from the owner of the brand on to the surface of the container. where otherwise required. Any label or other information that identifies the wholesaler, retailer, or Examples of acceptable contrasts are: § 4.42 Authorized relabeling activities by consumer of the wine may be added to (1) Black lettering appearing on a proprietors of bonded wine premises and containers (by the addition of stickers, white or cream background; or importers. engraving, stenciling, etc.) without prior (2) White or cream lettering appearing (a) Relabeling at bonded wine approval from TTB and without being on a black background. premises. Proprietors of bonded wine covered by a certificate of label approval (d) Capitalization. Except for the premises may relabel domestically or certificate of exemption from label aspartame statement when required by bottled wine prior to removal from, and approval. Such information may be § 4.63(b)(4), which must appear in all after return to bond at, the bonded wine added before or after the containers capital letters, mandatory information premises, with labels covered by a have been removed from bonded wine prescribed by this part may appear in all certificate of label approval (COLA) premises or released from customs capital letters, in all lower-case letters, without obtaining separate permission custody. The information added: or in mixed-case using both capital and from TTB for the relabeling activity. (a) May not violate the provisions of lower-case letters. (b) Relabeling after removal from subpart F, G, or H of this part; bonded wine premises. Proprietors of § 4.53 Type size of mandatory information. bonded wine premises may relabel (b) May not contain any reference to All capital and lowercase letters in domestically bottled wine after removal the characteristics of the product; and statements of mandatory information on from bonded wine premises with labels (c) May not be added to the container labels must meet the following type size covered by a COLA, without obtaining in such a way that it obscures any other requirements: separate permission from TTB for the labels on the container. (a) Minimum type size—(1) relabeling activity. Containers of more than 187 milliliters. (c) Relabeling in customs custody. Subpart D—Label Standards All mandatory information (including Under the supervision of customs the alcohol content statement) must be § 4.51 Firmly affixed requirements. officers, imported wine in containers in in script, type, or printing that is at least customs custody may be relabeled Any label that is not an integral part two millimeters in height. without obtaining separate permission of the container must be affixed to the (2) Containers of 187 milliliters or from TTB for the relabeling activity. container in such a way that it cannot less. All mandatory information Such containers must bear labels be removed without thorough (including the alcohol content covered by a COLA upon their removal application of water or other solvents. statement) must be in script, type, or

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printing that is at least one millimeter (2) For purposes of the net contents order to view any of the mandatory in height. statement and the name and address information. (b) Maximum type size for alcohol statement only, information blown, (2) Packaging is not considered closed content statement. The alcohol content embossed, or molded into the container if a consumer could view all of the statement on containers of five liters or as part of the process of manufacturing mandatory information on the container less may not appear in script, type, or the container; by merely lifting the container up, or if printing that is more than three (3) Information etched, engraved, the packaging is transparent or designed millimeters in height. sandblasted, or otherwise carved into in a way that all of the mandatory the surface of the container; and information can be easily read by the § 4.54 Visibility of mandatory information. (4) Information branded, stenciled, consumer without having to open, rip, Mandatory information on a label painted, printed, or otherwise directly untie, unzip, or otherwise manipulate must be readily visible and may not be applied onto the surface of the the package. covered or obscured in whole or in part. container. (d) Packaging that is not closed. The See § 4.62 for rules regarding packaging (b) Information appearing elsewhere following requirements apply to of containers (including cartons, on the container. Information appearing packaging that is not closed. coverings, and cases). See part 14 of this on the following parts of the container (1) The packaging may display any chapter for regulations pertaining to is subject to all of the restrictions and information that is not in conflict with advertising materials. prohibitions set forth in subparts F, G, the label on the container that is inside the packaging. § 4.55 Language requirements. and H of this part, but will not satisfy any requirements for mandatory (2) If the packaging displays a brand (a) General. Mandatory information information that must appear on labels name, it must display the brand name must appear in the English language, in this part: in its entirety. For example, if a brand with the exception of the brand name (1) Material affixed to, or information name is required to be modified with and except as provided in paragraphs (c) appearing on, the bottom surface of the additional information on the container, and (d) of this section. container; the packaging must also display the (b) Foreign languages. Additional (2) Caps, corks, or other closures same modifying language. statements in a foreign language, (3) If the packaging displays a class or unless authorized to bear mandatory including translations of mandatory type designation, it must be identical to information by the appropriate TTB information that appears elsewhere in the class or type designation appearing officer; and English on the label, are allowed on on the container. For example, if the (3) Foil or heat shrink bottle capsules. labels and containers as long as they do packaging displays a class or type not in any way conflict with, or (c) Materials not firmly affixed to the designation for a specialty product for contradict, the requirements of this part. container. Any materials that which a statement of composition is (c) Wine for consumption in the accompany the container to the required on the container, the packaging Commonwealth of Puerto Rico. consumer but are not firmly affixed to must include the statement of Mandatory information may be stated the container, including booklets, composition as well. solely in the Spanish language on labels leaflets, and hang tags, are not ‘‘labels’’ (e) Labeling of containers within the of wine bottled for consumption within for purposes of this part. Such materials packaging. The container within the the Commonwealth of Puerto Rico. are instead subject to the advertising packaging is subject to all labeling regulations in part 14 of this chapter. (d) Exception for country of origin. requirements of this part, including The country or countries of origin may § 4.62 Packaging (cartons, coverings, and mandatory labeling information appear in a language other than English cases). requirements, regardless of whether the when allowed by U.S. Customs and (a) General. The term ‘‘packaging’’ packaging bears such information. Border Protection regulations. includes any covering, carton, case, § 4.63 Mandatory label information. § 4.56 Additional information. carrier, or other packaging of wine (a) Mandatory information. Wine containers used for sale at retail, but Information (other than mandatory containers must bear a label or labels (as does not include shipping cartons or defined in § 4.61(a)) containing the information) that is truthful, accurate, cases that are not intended to and specific, and that does not violate following information: accompany the container to the (1) Brand name in accordance with subpart F, G, or H of this part, may consumer. appear on labels. Such additional § 4.64; (b) Prohibition. Any packaging of information may not conflict with, (2) Class, type, or other designation, wine containers may not contain any modify, qualify or restrict mandatory in accordance with subpart I of this part; statement, design, device, or graphic, information in any manner. (3) Alcohol content, in accordance pictorial, or emblematic representation with § 4.65; Subpart E—Mandatory Label that violates the provisions of subpart F, (4) A statement of the origin and Information G, or H of this part. percentage by volume of imported wine (c) Requirements for closed on blends of American and imported § 4.61 What constitutes a label for packaging. If containers are enclosed in wine, if any reference is made to the purposes of mandatory information. closed packaging, including sealed presence of imported wine on the (a) Label. Certain information as opaque coverings, cartons, cases, container; outlined in § 4.63, must appear on a carriers, or other packaging used for sale (5) Name and address of the bottler or label. When used in this part for at retail, such packaging must bear all importer, in accordance with § 4.66, purposes of determining where mandatory label information required § 4.67, or § 4.68 as applicable; and mandatory information must appear, the on the label under § 4.63. (6) Net contents (which may be term ‘‘label’’ includes: (1) Packaging is considered closed if blown, embossed, or molded into the (1) Material affixed to the container, the consumer must open, rip, untie, container as part of the process of whether made of paper, plastic film, or unzip, or otherwise manipulate the manufacturing the container) in other matter; package to remove the container in accordance with § 4.70.

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(b) Appellations of origin. An names. A brand name is misleading if it § 4.65 Alcohol content. appellation of origin in accordance with creates (by itself or in association with (a) General. In the case of wine §§ 4.88 through 4.91 of this part must be other printed or graphic matter) any containing 14 percent or less of alcohol stated on the label of each container in erroneous impression or inference as to by volume, the percentage of alcohol by the same field of vision as the class, the age, origin, identity, or other volume must be stated unless the type type, or other designation prescribed by characteristics of the wine. A brand designation ‘‘table’’ wine (or ‘‘light’’ paragraph (a)(2) of this section if: name may be found to be misleading by wine) appears on the label. In the case (1) A grape wine is labeled with a itself or in association with other of wines containing more than 14 class, type or other designation pursuant printed or graphic matter. With the percent of alcohol by volume, the to § 4.62(a)(2) that is: exception of geographic brand names percentage of alcohol by volume must (i) A varietal (grape type), as provided discussed in paragraph (c) of this be stated. Mandatory and optional for in § 4.156; section, a brand name that would statements of alcohol content as a (ii) A type designation of varietal otherwise be misleading may be percentage of alcohol by volume must significance, as provided in § 4.157; qualified with the word ‘‘brand’’ or with be made as prescribed in paragraph (b) (iii) A semi-generic type designation, some other qualification that adequately or (c) of this section. Other truthful, as provided in § 4.184; or dispels any misleading impression that accurate, and specific factual (2) The wine is labeled with a vintage might otherwise be created. representations of alcohol content, such date, pursuant to § 4.95. (c) Geographic brand names. (1) as alcohol by weight, may be made, as (c) Disclosure of certain ingredients. Except as otherwise provided in long as they appear together with, and Certain ingredients must be declared on paragraph (c)(2) of this section, a wine as part of, the statement of alcohol a label, without the inclusion of any container may not bear a brand name of content as a percentage of alcohol by additional information as part of the viticultural significance unless the wine volume. statement, as follows: meets the appellation of origin (b) Format of the alcohol content (1) FD&C Yellow No. 5. If a wine requirements for the geographic area statement—(1) General. Except as contains the coloring material FD&C named. (See §§ 4.88–4.91 and §§ 4.96– provided in paragraph (c) of this Yellow No. 5, the label must include a 4.98 for the appellation of origin section, the alcohol by volume statement to that effect, such as ‘‘’’FD&C requirements.) statement must be expressed in one of Yellow No. 5’’ or ‘‘Contains FD&C (2) For brand names of viticultural the following formats: Yellow No. 5.’’ significance used in COLAs issued prior (i) ‘‘Alcohol ll percent by volume’’; (2) Cochineal extract or carmine. If a to July 7, 1986, such a brand name may (ii) ‘‘ll percent alcohol by volume’’; wine contains the color additive appear on a wine container if: or cochineal extract or the color additive (i) The wine meets the appellation of (iii) ‘‘Alcohol by volume: ll carmine, the label must include a origin requirements for the geographic percent’’. statement to that effect, using the area named; (2) Formatting rules. Any of the words respective common or usual name (such (ii) The wine is labeled with an or symbols may be enclosed in as, ‘‘contains cochineal extract’’ or appellation of origin, in accordance parentheses and authorized ‘‘contains carmine’’). This requirement with §§ 4.88–4.91 and §§ 4.96–4.98, that abbreviations may be used with or applies to labels when either of the is: without a period. The alcohol content (A) A county or a viticultural area, if coloring materials is used in wine that statement does not have to appear with the brand name bears the name of a is removed from bottling premises or quotation marks. from customs custody on or after April geographic area smaller than a State; or (B) A State, county, or a viticultural (3) Optional abbreviations. The 16, 2013. statements listed in paragraph (b) of this (3) Sulfites. If a wine contains 10 or area, if the brand name bears a State name; or section must appear as shown, except more parts per million of sulfur dioxide that the following abbreviations may be or other sulfiting agent measured as (iii) The wine is labeled with some other statement that the appropriate used: Alcohol may be abbreviated as total sulfur dioxide, the label must ‘‘alc’’; percent may be represented by include a statement to that effect. TTB officer finds to be sufficient to dispel the impression that the the percent symbol ‘‘%’’; alcohol and Examples of acceptable statements are volume may be separated by a slash ‘‘/ ‘‘Contains sulfites’’ or ‘‘Contains (a) geographic area suggested by the brand name is indicative of the origin of the ’’ in lieu of the word ‘‘by’’; and volume sulfiting agent(s)’’ or a statement may be abbreviated as ‘‘vol.’’ identifying the specific sulfiting agent. wine. (3) A name has viticultural (4) Examples. The following are The alternative terms ‘‘sulphites’’ or examples of alcohol content statements ‘‘sulphiting’’ may be used. significance when it is the name of a State or county (or of the foreign that comply with the requirements of (4) Aspartame. If the wine contains this part: aspartame, the label must include the equivalent of a State or county), when following statement, in capital letters, it is approved as the name of a (i) ‘‘13.2% alc/vol’’; separate and apart from all other viticultural area under part 9 of this (ii) ‘‘Alc. 13.0 percent by vol.’’; (iii) ‘‘Alc 13% by vol’’; and information: ‘‘PHENYLKETONURICS: chapter, when it is approved by a (iv) ‘‘15.0% Alcohol by Volume.’’ CONTAINS PHENYLALANINE.’’ foreign government, or when it is found to have viticultural significance by the (c) Use of a range as the alcohol § 4.64 Brand name. appropriate TTB officer. Unless content statement—(1) General. The (a) Requirement. The wine label must determined otherwise by the alcohol content statement may be include a brand name. If the wine is not appropriate TTB officer, a name that is expressed as a range in accordance with sold under a brand name, the name of a county name will be considered to the provisions of paragraph (c)(2) of this the bottler or importer, as applicable, have viticultural significance only when section. For wine containing 14 percent appearing in the name and address the word ‘‘county’’ follows the name. alcohol by volume or less, the alcohol statement is treated as the brand name. For example, while ‘‘Clark County’’ has content may be stated as a range of three (b) Misleading brand names. Labels viticultural significance, the word percentage points. For wine containing may not include any misleading brand ‘‘Clark’’ does not. more than 14 percent alcohol by volume

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the alcohol content may be stated as a tolerances normally permitted in direct conjunction ‘‘and’’ and the use of any of range of two percentage points. statements, and ranges normally these words with the words ‘‘bottled (2) Format of the alcohol content permitted in maximum and minimum by’’ ‘‘canned by,’’ ‘‘packed by,’’ or statement using a range. If the alcohol statements, alcohol content statements ‘‘filled by’’ is permissible only if the content statement is expressed as a must correctly indicate the tax class of same person performed the defined range, it must be made in one of the the wine so labeled. Nothing in this operation at the same address. More following formats: section shall be construed as than one name statement must appear if (i) Alcohol ll percent to ll authorizing the appearance upon the the defined operation was performed by percent by volume, labels of any wine of an alcohol content a person other than the bottler, and (ii) ll to ll percent alcohol by statement in terms of maximum and more than one address statement must volume, or minimum percentages that overlaps a appear if the defined operation was (iii) Alcohol by volume: ll to ll prescribed limitation on the alcohol performed at a different address. percent. content of any tax class. (d) Produced or Made. The terms (3) Optional marks. Any of the words (2) Tax classes and certain class and ‘‘Produced’’ or ‘‘Made’’ mean that the or symbols may be enclosed in type designations. The tolerances set named winery: parentheses, and authorized forth in this section shall not apply (1) Fermented not less than 75 percent abbreviations may be used with or where a minimum or maximum alcohol of the wine at the stated address, or without a period. content requirement is set forth in either (2) Changed the class or type of the (4) Optional abbreviations. Alcohol a tax classification of the product (found wine by addition of wine spirits, may be abbreviated as ‘‘alc’’; percent in 26 U.S.C. 5041) or a class or type brandy, flavors, colors, or artificial may be represented by the percent designation in this part that reflects a carbonation at the stated address, or symbol ‘‘%’’; alcohol and volume may minimum or maximum alcohol content (3) Produced sparkling wine by be separated by a slash ‘‘/’’ in lieu of the requirement consistent with limits set secondary fermentation at the stated word ‘‘by’’; the two alcohol content forth in a tax class. For example, the address, numbers may be separated by a dash class designation for ‘‘table wine’’ in (e) Blended. The term ‘‘Blended’’ ‘‘–’’ instead of the word ‘‘to’’; and this part includes a maximum alcohol means that the named winery mixed the volume may be abbreviated by ‘‘vol’’. content of 14 percent alcohol by wine with other wines of the same class (5) Examples. The following are volume, which is consistent with the and type at the stated address, examples of alcohol content statements (f) Cellared, Vinted, and Prepared. maximum alcohol content for a class of that comply with the requirements of The terms ‘‘Cellared,’’ ‘‘Vinted’’ and still wines under 26 U.S.C. 5041(b)(1). this part: ‘‘10 to 12 percent alcohol by ‘‘Prepared’’ mean that the named Thus, a still grape wine that contains volume,’’ ‘‘10–12% (alc) by volume,’’ winery, at the stated address, subjected 14.2 percent alcohol by volume may not and ‘‘10 to 12 percent alc./vol.’’ the wine to cellar treatment in be labeled as either a ‘‘table wine’’ or (d) Tolerances for wine containing no accordance with § 4.154(c) of this part. more than 14 percent alcohol by with an alcohol content of 14 percent or (g) Use of trade name. (1) A trade volume. For specific statements of less, regardless of the tolerance name that appears on the basic permit alcohol content for wines containing no prescribed in this section. or other qualifying documentation may more than 14 percent alcohol by § 4.66 Name and address for domestically be used only if the use of that name volume, except as provided for in bottled wine that was wholly fermented in would not create a misleading paragraph (f) of this section, the alcohol the United States. impression as to the age, origin, or by volume statement on the label must (a) General. Domestically bottled wine identity of the product. For example, be within 1.5 percentage points above or that was wholly fermented in the United when a bottler authorizes the use of its below the actual alcohol content. For States and contains no imported wine trade name by another bottler that is not example, an alcohol beverage with an must be labeled in accordance with this under the same ownership, that trade actual alcohol content of 10 percent section. (See §§ 4.67 and 4.68 for name name may not be used on a label in a alcohol by volume would comply with and address requirements applicable to way that tends to mislead consumers as this tolerance if it were labeled with an wine that is not wholly fermented in the to the identity or location of the bottler. alcohol content statement between 8.5 United States.) (2) If the same brand of wine is and 11.5 percent alcohol by volume. (b) Mandatory statement. The label on bottled by two bottlers that are not (e) Alcohol content statement containers must state the name of the under the same ownership, and each tolerances for wine containing more bottler and the city and State where has adopted the same trade name on its than 14 percent alcohol by volume. For bottled, preceded by the phrases basic permit pursuant to a contractual specific numeric statements of alcohol ‘‘bottled by,’’ ‘‘canned by,’’ ‘‘packed arrangement, the name and address content for wines containing more than by,’’ or ‘‘filled by,’’ followed by the statement must be worded in such a 14 percent alcohol by volume, except as name of the bottler and the place where way that the label does not create a provided for in paragraph (f) of this bottled. misleading impression as to the identity section, the alcohol by volume (c) Optional statements. In addition to or location of the bottling winery or statement on the label must be within the statement required by paragraph (b) taxpaid wine bottling house. one percentage point above or below the of this section, the label may also: (h) Form of address. (1) The address actual alcohol content. For example, an (1) State the name and address of any consists of the city and State where the alcohol beverage with an actual alcohol other person for whom the wine was referenced activity occurred, and must content of 16 percent alcohol by volume bottled, immediately preceded by the be consistent with the address reflected would comply with this tolerance if it words ‘‘bottled for’’ ‘‘canned for,’’ on the basic permit or other qualifying were labeled with an alcohol content ‘‘packed for,’’ or ‘‘filled for’’ or documentation of the premises where statement between 15 and 17 percent ‘‘distributed by’’; the activity occurred. Addresses may, alcohol by volume. (2) Contain additional words, as but are not required to, include (f) Tolerances must not cut across tax specified and defined in paragraphs (d) additional information such as street classes—(1) General. Regardless of the through (f) of this section. The use of names, counties, zip codes, phone type of statement used and regardless of two or more of these words with the numbers, and website addresses.

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(2) The address for each activity that (canned, packed, or filled) in the United Customs and Border Protection country is designated on the label must also be States for’’ (or a similar appropriate of origin marking requirements. shown. An example for a wine phrase) followed by the name and (b) Mandatory labeling statement. The produced in the United States would be address of the principal place of labels on wines imported in containers, ‘‘Produced at Gilroy, California, and business in the United States of the as defined in § 4.1, must state the words bottled at San Mateo, California, by XYZ person responsible for the importation; ‘‘imported by’’ or a similar appropriate Winery.’’ or phrase and, immediately thereafter, the (3) No additional places or addresses (2) If the wine was bottled by the name and address of the importer. may be stated for the same person person responsible for the importation, (1) For purposes of this section, the unless: the words ‘‘imported and bottled by’’ importer is the holder of the importer’s (i) That person is actively engaged in followed by the name and address of the basic permit that either makes the the conduct of an additional bona fide principal place of business in the original Customs entry or is the person and actual alcohol beverage business at United States of the person responsible for which such entry is made, or the such additional place or address, and for the importation. holder of the importer’s basic permit (ii) The label also contains (3) In the situations set forth in that is the agent, distributor, or immediately adjacent to the address paragraphs (c)(1) and (2) of this section, franchise holder for the particular brand appropriate descriptive material the address shown on the label may be of imported alcohol beverages and that indicating the function occurring at that of the principal place of business of places the order abroad. each additional place or address in the importer who is also the bottler, (2) The address of the importer must connection with the particular product. provided that the address shown is a be stated as the city and State of the (4) The postal abbreviation of the location where bottling takes place. principal place of business and must be State name may be used; for example, (d) Use of trade name. (1) A trade consistent with the address reflected on California may be abbreviated as CA. name that appears on the basic permit the importer’s basic permit. Addresses or other qualifying documentation may may, but are not required to, include § 4.67 Name and address for domestically be used only if the use of that name bottled wine that was bottled after additional information such as street importation. would not create a misleading names, counties, zip codes, phone impression as to the age, origin, or numbers, and website addresses. The (a) General. This section applies to identity of the product. For example, domestically bottled wine that was postal abbreviation of the State name when a bottler authorizes the use of its may be used; for example, California bottled after importation. See § 4.68 for trade name by another bottler that is not name and address requirements may be abbreviated as CA. under the same ownership, that trade (c) Wine bottled in a foreign country applicable to imported wine that is name may not be used on a label in a imported in a container. See 19 CFR other than the country of origin. If the way that tends to mislead consumers as wine was blended, bottled or packed in parts 102 and 134 for U.S. Customs and to the identity or location of the bottler. Border Protection country of origin a foreign country other than the country (2) If the same brand of wine is of origin, and the label identifies the marking requirements. bottled by two bottlers that are not (b) Domestically bottled wine that was country of origin, the label must state under the same ownership, and each ‘‘blended by,’’ ‘‘bottled by,’’ or other produced, made, or blended in the has adopted the same trade name on its United States. Domestically bottled appropriate statement, followed by the basic permit pursuant to a contractual name of the blender or bottler and the wine that was produced, made, or arrangement, the name and address blended (in accordance with the place where the wine was blended, statement must be worded in such a bottled or packed. definitions set forth in § 4.66) in the way that the label does not create a United States after the wine (or a wine (d) Optional statements. In addition to misleading impression as to the identity the statements required by paragraph in a blend of wines) was imported must or location of the bottling winery or be labeled in accordance with the rules (a)(1) of this section, the label may also taxpaid wine bottling house. state the name and address of the set forth in § 4.66 regarding mandatory (e) Form of address. (1) The address principal place of business of the and optional labeling statements. consists of the city and State where the foreign producer. Other words, or their (c) Wine bottled after importation referenced activity occurred, and must English-language equivalents, denoting without blending or production be consistent with the address reflected winemaking operations may be used in activities. The label on wine that is on the basic permit or other qualifying accordance with the requirements of the bottled in the United States after documentation of the premises where country of origin, for wines sold within importation without being produced, the activity occurred. Addresses may, the country of origin for home made or blended (in accordance with but are not required to, include consumption. the definitions set forth in § 4.66) in the additional information such as street (e) Form of address. The ‘‘place’’ United States after the wine was names, counties, zip codes, phone stated must be the city and State, shown imported must state must state the numbers, and website addresses. words ‘‘imported by’’ or a similar (2) The postal abbreviation of the on the basic permit or other qualifying appropriate phrase, followed by the State name may be used; for example, document, of the premises at which the name and address of the importer. The California may be abbreviated as CA. operations took place; and the place for label must also state the words ‘‘bottled each operation that is designated on the by’’ or ‘‘packed by,’’ followed by the § 4.68 Name and address for wine that was label must be shown. name and address of the bottler, except imported in a container. (2) The postal abbreviation of the that the following phrases are (a) General. This section applies to State name may be used; for example, acceptable in lieu of the name and wine that is imported in a container, as California may be abbreviated as CA. address of the bottler under the defined in § 4.1 of this part. See § 4.67 (f) Trade or operating names. A trade circumstances set forth below: for rules regarding name and address name may be used if the trade name is (1) If the wine was bottled for the requirements applicable to wine that is listed on the basic permit or other person responsible for the importation, domestically bottled after importation. qualifying documentation and if its use the words ‘‘imported by and bottled See 19 CFR parts 102 and 134 for U.S. on the label would not create any

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misleading impression as to the age, equivalent volume must be shown as mandatory information may appear, as origin, or identity of the product. follows: set forth in § 4.61(a), as well as any other label on the container. § 4.69 Country of origin. (1) For the metric standards of fill: (i) 3 liters (101 fl. oz.); (2) The term ‘‘container’’ includes all (a) Pursuant to U.S. Customs and (ii) 1.5 liters (50.7 fl. oz.); parts of the wine container, including Border Protection (CBP) regulations at (iii) 1 liter (33.8 fl. oz.); any part of a wine container on which 19 CFR parts 102 and 134, a country of (iv) 750 mL (25.4 fl. oz.); mandatory information may appear, as origin statement must appear on the (v) 500 mL (16.9 fl. oz.); well as those parts of the container on container of wine imported in (vi) 375 mL (12.7 fl. oz.); which information does not satisfy containers or bottled in the United (vii) 187 mL (6.3 fl. oz.); mandatory labeling requirements, as set States after importation. Labeling (viii) 100 mL (3.4 fl. oz.); and forth in § 4.61(b). statements with regard to the country of (ix) 50 mL (1.7 fl. oz.). (3) The term ‘‘packaging’’ includes origin must be consistent with CBP (2) If the container is exempt from a any carton, case, carrier, individual regulations. The determination of the standard of fill as described in covering or other packaging of such country (or countries) of origin, for paragraph (c) of this section: containers used for sale at retail, but imported wines, as well as for blends of (i) Equivalent volumes of less than does not include shipping cartons or imported wine with domestically 100 fluid ounces must be stated in fluid cases that are not intended to fermented wine, must comply with CBP ounces, accurate to the nearest one- accompany the container to the regulations. tenth of a fluid ounce, for example: 600 consumer. (b) It is the responsibility of the mL (20.3 fl. oz.); and (b) Statement or representation. For importer or bottler, as appropriate, to (ii) Equivalent volumes of 100 fluid purposes of this subpart, the term ensure compliance with the country of ounces or more must be stated in fluid ‘‘statement or representation’’ includes origin marking requirement, both when ounces only, accurate to the nearest any statement, design, device, or wine is imported in containers and whole fluid ounce, for example: 6 liters representation, and includes pictorial or when imported wines are subject to (203 fl. oz.). graphic designs or representations as bottling, blending, or production (e) Tolerances. A statement of net well as written ones. The term activities in the United States. Industry contents must indicate the exact volume ‘‘statement or representation’’ includes members may seek a ruling from CBP of wine in the container, except that the explicit and implicit statements and for a determination of the country of following tolerances shall be allowed: representations. origin for their product. (1) Discrepancies due exclusively to errors in measuring that occur in filling Food Allergen Labeling § 4.70 Net contents. conducted in compliance with good § 4.82 Voluntary disclosure of major food The requirements of this section commercial practice; allergens. (2) Discrepancies due exclusively to apply to the net contents statement (a) Definitions. For purposes of this differences in the capacity of containers, required by § 4.63. section, the following terms or phrases resulting solely from unavoidable (a) Standard containers. The net have the meanings indicated. difficulties in manufacturing the contents for wine for which a standard (1) Major food allergen means any of containers so as to be of uniform of fill is prescribed in § 4.203 must be the following: capacity, provided that the discrepancy stated in the same manner and form as (i) Milk, egg, fish (for example, bass, does not result from a bottle design that specified in the standard of fill. flounder, or cod), Crustacean shellfish prevents the manufacture of bottles of (b) Aggregately packaged containers— (for example, crab, lobster, or shrimp), an approximately uniform capacity; and (1) External containers. The net contents tree nuts (for example, almonds, pecans, (3) Discrepancies in measure due to of the external container for wine or walnuts), wheat, peanuts, and differences in atmospheric conditions in packaged in an aggregate package under soybeans; or various places, including discrepancies the provisions of § 4.214 must be stated (ii) A food ingredient that contains resulting from the ordinary and in accordance with that section. protein derived from a food specified in customary exposure of alcohol (2) Internal containers. The net paragraph (a)(1)(i) of this section, beverages in containers to evaporation, contents for the internal containers of an except: provided that the discrepancy is aggregate package must be stated in (A) Any highly refined oil derived determined to be reasonable on a case- milliliters. from a food specified in paragraph by-case basis. (c) Wine not subject to standards of (a)(1)(i) of this section and any fill. The net contents of wine that is not Subpart F—Restricted Labeling ingredient derived from such highly subject to standards of fill prescribed in Statements refined oil; or § 4.203, under the rules set forth in (B) A food ingredient that is exempt § 4.201(b), must be stated as follows: § 4.81 General. from major food allergen labeling (1) If the container has a capacity of (a) Application. The labeling requirements pursuant to a petition for more than one liter, the net contents practices, statements, and exemption approved by the Food and must be stated in liters and in decimal representations in this subpart may be Drug Administration (FDA) under 21 portions of a liter accurate to the nearest used on wine labels only when used in U.S.C. 343(w)(6) or pursuant to a notice one-hundredth of a liter; and compliance with this subpart. In submitted to the FDA under 21 U.S.C. (2) If the container has a capacity of addition, if any of the practices, 343(w)(7), provided that the food less than one liter, the net contents shall statements, or representations in this ingredient meets the terms or be stated in milliliters. subpart are used elsewhere on conditions, if any, specified for that (d) Optional statement of U.S. containers or in packaging, they must exemption. equivalent net contents. Net contents in comply with the requirements of this (2) Name of the food source from U.S. equivalents may appear on a label subpart. For purposes of this subpart: which each major food allergen is along with the required metric net (1) The term ‘‘label’’ includes all derived. ‘‘Name of the food source from contents statement. If used, the U.S. labels on wine containers on which which each major food allergen is

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derived’’ means the name of the food as denied, unless an extension of time for prejudice the competitive position of listed in paragraph (a)(1)(i) of this decision is mutually agreed upon by the the interested person; and section, except that: appropriate TTB officer and the (v) The request must be supported by (i) In the case of a tree nut, it means petitioner. TTB may confer with the a signed statement by the interested the name of the specific type of nut (for Food and Drug Administration (FDA) on person, or by an authorized officer or example, almonds, pecans, or walnuts); petitions for exemption, as appropriate employee of that person, certifying that (ii) In the case of Crustacean shellfish, and as FDA resources permit. TTB may the information in question is a trade it means the name of the species of require the submission of product secret or other confidential commercial Crustacean shellfish (for example, crab, samples and other additional or financial information and that the lobster, or shrimp); and information in support of a petition; information is not already in the public (iii) The names ‘‘egg’’ and ‘‘peanuts,’’ however, unless required by TTB, the domain. as well as the names of the different submission of samples or additional types of tree nuts, may be expressed in information by the petitioner after Production Claims either the singular or plural form, and submission of the petition will be § 4.84 Use of the term ‘‘organic.’’ the names ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’ treated as the withdrawal of the initial Use of the term ‘‘organic’’ is permitted may be used instead of ‘‘soybeans.’’ petition and the submission of a new if any such use complies with United (b) Voluntary labeling standards. petition. An approval or denial under States Department of Agriculture Major food allergens used in the this section will constitute final agency (USDA) National Organic Program rules production of a wine product may, on action. (7 CFR part 205), as interpreted by the a voluntary basis, be declared on a label (c) Resubmission of a petition. After a USDA. or container. However, if any one major petition for exemption is denied under food allergen is voluntarily declared, all this section, the petitioner may resubmit § 4.85 Environmental, sustainability, and major food allergens used in production the petition along with supporting similar statements. of the wine product, including major materials for reconsideration at any Statements related to environmental food allergens used as fining or time. TTB will treat this submission as or sustainable agricultural practices, processing agents, must be declared, a new petition. social justice principles, and other except when covered by a petition for (d) Availability of information—(1) similar statements (such as, ‘‘Produced exemption approved by the appropriate General. TTB will promptly post to its using 100% solar energy’’ or ‘‘Carbon TTB officer under § 4.83. The major website, https://www.ttb.gov, all Neutral’’) may appear as long as the food allergens declaration must consist petitions received under this section, as statements are truthful, specific, and not of the word ‘‘Contains’’ followed by a well as TTB’s responses to those misleading. Statements or logos colon and the name of the food source petitions. Any information submitted in indicating environmental, sustainable from which each major food allergen is support of the petition that is not posted agricultural, or social justice derived (for example, ‘‘Contains: egg’’). to the TTB website will be available to certification (such as, ‘‘Biodyvin,’’ (c) Cross reference. For mandatory the public pursuant to the Freedom of ‘‘Salmon-Safe,’’ or ‘‘Fair Trade labeling requirements applicable to Information Act (5 U.S.C. 552), except Certified’’) may appear on wines that are wine products containing FD&C Yellow where a request for confidential actually certified by the appropriate No. 5, sulfites, aspartame, and cochineal treatment is granted under paragraph organization. extract or carmine, see § 4.63(b). (d)(2) of this section. (2) Requests for confidential treatment § 4.86 Use of TTB permit numbers on § 4.83 Petitions for exemption from major of business information. A person who labels. food allergen labeling. provides trade secrets or other Wine labels, containers, and (a) Submission of petition. Any commercial or financial information in packaging may bear TTB issued permit person may petition the appropriate connection with a petition for numbers as long as those permit TTB officer to exempt a particular exemption under this section may numbers are located immediately product or class of products from the request that TTB give confidential adjacent to the name and address of the labeling requirements of § 4.82. The treatment to that information. A failure person operating the bonded wine cellar burden is on the petitioner to provide to request confidential treatment at the or winery. No additional reference may scientific evidence (as well as the time the information in question is be made that may convey the analytical method used to produce the submitted to TTB will constitute a impression that the wine was made or evidence) that demonstrates that the waiver of confidential treatment. A matured under government supervision finished product or class of products, as request for confidential treatment of or in accordance with government derived by the method specified in the information under this section must standards. petition, either: conform to the following standards: (1) Does not cause an allergic (i) The request must be in writing; § 4.87 Use of vineyard, orchard, farm, or response that poses a risk to human (ii) The request must clearly identify ranch name as a claim or as additional health; or the information to be kept confidential; information. (2) Does not contain allergenic protein (iii) The request must relate to (a) General. Except as provided in derived from one of the foods identified information that constitutes trade paragraph (b) of this section, the name in § 4.82(a)(1)(i), even though a major secrets or other confidential commercial of a vineyard, orchard, farm, or ranch food allergen was used in production. or financial information regarding the may not appear on a wine label, (b) Decision on petition. TTB will business transactions of an interested container, or packaging unless 95 approve or deny a petition for person, the disclosure of which would percent of the wine in the container is exemption submitted under paragraph cause substantial harm to the produced from primary winemaking (a) of this section in writing within 180 competitive position of that person; material grown on the named vineyard, days of receipt of the petition. If TTB (iv) The request must set forth the orchard, farm, or ranch. does not provide a written response to reasons why the information should not (b) Exception. (1) A vineyard, orchard, the petitioner within that 180-day be disclosed, including the reasons the farm, or ranch name may be used period, the petition will be deemed disclosure of the information would without complying with the

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requirements of paragraph (a) of this (d) When an appellation of origin grown in the counties included in the section if the vineyard, orchard, farm, or must be used. An appellation of origin appellation; ranch name is part of an operating name in accordance with §§ 4.88 through 4.91, (2) The wine derived from grapes or trade name that appears in the disclosing the true place of origin of the grown in each county included in the mandatory name and address statement. wine, must appear if: appellation is in greater proportion than In such a case, the vineyard, orchard, (1) A varietal (grape type) designation wine derived from grapes grown in any farm, or ranch name that appears in the is used as provided in § 4.156; county that is not listed; and name and address statement may also (2) A type designation of varietal (3) The counties must be listed in appear in the brand name, as long as use significance is used as provided in descending order of predominance, of the name does not make a claim as § 4.157; based on the percentage of wine derived to the origin of the winemaking (3) A semi-generic type designation is from grapes grown in each county. materials. used as the class and type designation (b) Multicounty appellations of origin (2) Vineyard, orchard, farm, or ranch of the wine, as provided in § 4.174; for imported wine. An appellation of name having geographic significance. (6) The wine is labeled with a vintage origin comprising the names of two or When used in a brand name, a vineyard, date, and otherwise conforms with the three states, provinces, territories, or orchard, farm, or ranch name having provisions of § 4.95. similar political subdivisions of a country equivalent to a county, all of geographical or viticultural significance § 4.89 Eligibility for the use of an is subject to the requirements of appellation of origin for grape wine. which are in the same country, may be used if: § 4.64(b) and (c). (a) Appellations of origin for (1) At least 85 percent of the volume American wine. An American wine is Appellations of Origin for Grape Wine of the wine is derived from grapes entitled to use the name of a single grown in the counties included in the § 4.88 Appellations of origin for grape county, State, or country (the United wine in general. appellation; States or America[n]) as an appellation (2) The wine derived from grapes (a) General. An appellation of origin of origin if: grown in each county included in the for grape wine is the name of a place (1) At least 75 percent of the volume appellation is in greater proportion than where grapes used to produce a of wine is derived from grapes grown in wine derived from grapes grown in any specified minimum percentage of wine the named county, State or country; (2) The wine has been fully finished county that is not listed; for still grape wine, sparkling grape (3) The counties must be listed in wine, and carbonated grape wine were (as defined in § 4.1): (i) In the United States, if labeled descending order of predominance, grown. The requirements in this section based on the percentage of wine derived and §§ 4.89 through 4.91 apply to the ‘‘[the] United States’’ or ‘‘America[n]’’; (ii) Within the labeled State or an from grapes grown in each county; and use of appellations of origin. All parts (4) The wine conforms to the of the appellation must be in the same adjacent State if labeled with a State appellation; or requirements of the foreign laws and type size and immediately adjacent to regulations that govern the composition, each other. (iii) Within the State in which the labeled county is located, if labeled with method of production, and designation (b) Definition of ‘‘appellation of of wines available for consumption origin’’ for American wine. An a county appellation; and (3) The wine conforms to the laws and within the country of origin. American appellation of origin is the (c) Multistate appellations of origin name (or names) of: regulations of the named appellation area that govern the composition, for American wine. An appellation of (1) (The) United States or America origin comprising the names of two or (American); method of production, and designation of wines made in such area. three States may be used if: (2) A State; (1) At least 85 percent of the volume (3) Two or three States; (b) Appellations of origin for imported wine. An imported wine is entitled to of the wine is derived from grapes (4) A county (which must be grown in the States included in the identified with the word ‘‘county’’ or use the name of a single country or a single State, province, territory, or appellation; other appropriate term for a county (2) The wine derived from grapes equivalent, where applicable, printed in similar political subdivision of a country equivalent to a state or county grown in each State included in the the same font and type size as the name appellation is in greater proportion than of the county); as an appellation of origin if: (1) At least 75 percent of the volume wine derived from grapes grown in any (5) Two or three counties in the same of the wine is derived from grapes State that is not listed; State; or grown in the area indicated by the (3) The States are listed in a (6) A viticultural area (as defined in appellation of origin; and descending order of predominance, § 4.91). (2) The wine conforms to the based on the percentage of wine derived (c) Definition of appellation of origin requirements of the foreign laws and from grapes grown in each State; for imported wine. An appellation of regulations that govern the composition, (4) The wine has been fully finished origin for imported wine is the name (or method of production, and designation (as defined in § 4.1) in one of the labeled names) of: of wines available for consumption States; and (1) A country; within the country of origin. (5) The wine conforms to the laws and (2) A state, province, territory, or regulations that govern the composition, similar political subdivision of a § 4.90 Multicounty and multistate method of manufacture, and designation country equivalent to a state or county; appellations of origin for grape wine. of wines in all of the States listed in the (3) Two or three states, provinces, (a) Multicounty appellations of origin appellation. territories, or similar political for American wine. An appellation of (d) Multistate appellations of origin subdivisions of a country equivalent to origin comprising the names of two or for imported wine. An appellation of a state; three counties in the same State may be origin comprising the names of two or (4) Two or three counties; or used if: three states, provinces, territories, or (5) A viticultural area (as defined in (1) At least 85 percent of the volume similar political subdivisions of a § 4.91). of the wine is derived from grapes country equivalent to a state, all of

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which are in the same country, may be (3) In the case of foreign wine, it land owned or controlled by the used if: conforms to the requirements of the producing winery within the boundaries (1) At least 85 percent of the volume foreign laws and regulations that govern of the appellation of origin, and of the wine is derived from grapes the composition, method of production, fermented 100 percent of the wine from grown in the states, provinces, and designation of wines available for those grapes; and territories, or similar political consumption within the country of (4) If the bottling winery is not the subdivisions of a country equivalent to origin; and producing winery, the label must clarify a state that are included in the (4) In the case of American wine, it that the wine was ‘‘estate grown’’ by the appellation; has been fully finished (as defined in producing winery, and the name and (2) The wine derived from grapes § 4.1) within the State, or one of the address of both wineries must appear on grown in each state, province, territory, States, within which the labeled the label. An acceptable labeling or similar political subdivision included viticultural area is located. statement would be ‘‘Estate grown and in the appellation is in greater (e) More than one viticultural area. A produced by ABC Winery, Seattle, proportion than wine derived from wine may be labeled with more than Washington. Bottled by XYZ Winery, grapes grown in any such area not listed one viticultural area if: Tacoma, Washington.’’ on the label; (1) The indicated viticultural areas (b) Special rule for cooperatives. (3) The states, provinces, territories, overlap; and Grapes grown by the members of a or similar political subdivisions are (2) Not less than 85 percent of the single cooperative bottling winery are listed in a descending order of volume of the wine is derived from considered to be grown by the bottling predominance, based on the percentage grapes grown in the overlapping area. winery. of wine derived from grapes grown in Claims About Grape Wine (c) Definition. For purposes of this each; and section, land controlled by the winery (4) The wine conforms to the § 4.92 Estate bottled. refers to property on which the requirements of the foreign laws and (a) Conditions for use. The term producing winery has the legal right to regulations that govern the composition, ‘‘Estate bottled’’ may appear on a wine perform, and does perform, all of the method of production, and designation label only if the wine is labeled with a acts common to viticulture under the of wines available for consumption viticultural area appellation of origin terms of a lease or similar agreement of within the country of origin. and the bottling winery: at least 3 years duration. § 4.91 Viticultural areas. (1) Is located within the labeled viticultural area; § 4.94 Claims on grape wine labels for (a) Definition of viticultural area for (2) Grew all of the grapes used to viticultural practices that result in sweet American wine. An American make the wine on land owned or wine. viticultural area is a delimited grape- controlled by the winery within the (a) General. The claims set forth in growing region having a name, boundaries of the labeled viticultural paragraphs (b) through (d) of this distinguishing features, and a delineated area; and section about viticultural practices that boundary as established in part 9 of this (3) Crushed the grapes, fermented the result in sweet wine may be used on chapter. resulting must, and fully finished, aged, labels of grape wine subject to the rules (b) Definition of viticultural area for and bottled the wine in a continuous imported wine. A viticultural area for set forth in this section. In all such process (the wine at no time having left cases, the wine must also be labeled imported wine is a delimited place or the premises of the bottling winery). region (other than a place or region with the amount of sugar contained in (b) Special rule for cooperatives. the grapes at the time of harvest and the (such as a county or state) defined in Grapes grown by the members of a § 4.88(c)(1), (2), or (3)) the boundaries of amount of residual sugar in the finished single cooperative bottling winery are wine. The amount of sugar may be which have been recognized and considered to be grown by the bottling defined by the country of origin for use stated in degrees Brix, percent by winery. weight, grams per 100 mL or grams per on labels of wine available for (c) Use of other terms. No term other consumption within the country of liter. Harvest or picking dates may not than ‘‘Estate bottled’’ may appear on a be stated on the label unless the wine origin. label to indicate combined growing and (c) Establishment of American is labeled with a vintage date in bottling conditions. accordance with § 4.95. viticultural areas. A petition for the (d) Definitions. For purposes of this (b) Ice wine. The term ‘‘ice wine’’ (or establishment of an American section, land controlled by the winery ‘‘icewine,’’ or ‘‘ice-wine’’) may be used viticultural area may be submitted by refers to property on which the only to describe wines produced any interested party, pursuant to part 9 producing winery has the legal right to exclusively from grapes that have been and § 70.701(c) of this chapter. The perform, and does perform, all of the harvested after they have naturally petition must be made in written form acts common to viticulture under the frozen on the vine. Wine that is and must contain the information terms of a lease or similar agreement of ameliorated, concentrated, fortified, or specified in § 9.12 of this chapter. at least three years duration. (d) Requirements for use. A wine may produced from concentrate may not be be labeled with the name of a § 4.93 Estate grown. labeled as ‘‘ice wine.’’ Wine produced viticultural area if: (a) Conditions for use. The term from grapes that were frozen post- (1) The appellation has been approved ‘‘Estate(s) grown’’ may appear on a wine harvest may not be labeled as ‘‘ice under part 9 of this chapter in the case label only if all of the following wine’’ but may be labeled with a of domestic wine or by the appropriate conditions are met: statement such as ‘‘made from grapes foreign government in the case of (1) The wine is labeled with an frozen post-harvest.’’ imported wine; appellation of origin; (c) Late harvest or late picked. The (2) Not less than 85 percent of the (2) The producing winery is located term ‘‘late harvest’’ or ‘‘late picked’’ may wine is derived from grapes grown within the appellation of origin; not be used on the label of a wine that within the boundaries of the viticultural (3) The producing winery grew all of is ameliorated, concentrated, fortified, area; the grapes used to make the wine on or produced from concentrate.

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(d) Botrytis Infected or Pourriture Appellations of Origin for Fruit Wine, (2) The wine has been fully finished Noble. Grape wine produced from Agricultural Wine, and Rice Wine (as defined in § 4.1): grapes that have been infected with the (i) In the United States, if labeled § 4.96 Appellations of origin for fruit wine, ‘‘[the] United States’’ or ‘‘America[n]’’; botrytis cinerea mold may be labeled agricultural wine, and rice wine in general. with a term such as ‘‘Botrytis Infected,’’ (ii) Within the labeled State or an (a) General. An appellation of origin ‘‘Pourriture Noble,’’ or another name for adjacent State if labeled with a State for fruit wine, agricultural wine, or rice infection by the botrytis cinerea mold. appellation; or wine is the name of a place where the (iii) Within the State in which the § 4.95 Vintage date. fruit (other than grapes), agricultural labeled county is located, if labeled with products, or rice, respectively, used to a county appellation; and (a) General. Grape wine may be produce a specified minimum (3) The wine conforms to the laws and labeled with the vintage date (which is percentage of the fruit wine, agricultural regulations of the named appellation the calendar year in which the grapes wine, or rice wine, as prescribed in area that govern the composition, used to make the wine were harvested) subpart I of this part, are grown. In the method of production, and designation only if the wine is also labeled with an case of honey wine, eligibility for use of of wines made in such place. appellation of origin as defined in an appellation of origin is based on the (b) Appellations of origin for imported § 4.88. The requirements in paragraphs place where the source plants for the wine. An imported wine is entitled to (a)(1) through (3) of this section apply honey were grown. The requirements in use the name of a single country or a to the use of vintage dates on American this section and §§ 4.97 and 4.98, apply single State, province, territory, or and imported wines: to the use of appellations of origin. All similar political subdivision of a (1) If wine is labeled with a parts of the appellation must be in the country equivalent to a state or county same type size and immediately viticultural area as defined in § 4.91, at as an appellation of origin if: adjacent to each other. least 95 percent of the wine must have (1) At least 75 percent of the volume (b) Definition of ‘‘appellation of been derived from grapes harvested in of the wine is derived from fruit or other origin’’ for American wine. An agricultural products grown in the area the labeled calendar year. American appellation of origin is the indicated by the appellation of origin; (2) If a wine is labeled with an name (or names) of: and appellation of origin other than a (1) (The) United States or America (2) The wine conforms to the viticultural area, at least 85 percent of (American); requirements of the foreign laws and the wine must have been derived from (2) A State (including the District of regulations that govern the composition, grapes harvested in the labeled calendar Columbia and the Commonwealth of method of production, and designation year. Puerto Rico); of wines available for consumption (3) Two or no more than three States; (3) A wine may be labeled with only within the country of origin. (4) A county (which must be one vintage date. identified with the word ‘‘county’’ or § 4.98 Multicounty and multistate (b) Imported wine. Imported wine other appropriate term for a county appellations of origin for fruit wine, agricultural wine, and rice wine. may bear a vintage date if all of the equivalent, where applicable, printed in following conditions are met: the same font and type size as the name (a) Multicounty appellations of origin. An appellation of origin comprising the (1) The wine is made in compliance of the county); or (5) Two or no more than three names of two or three counties in the with the production standards same State may be used if: referenced in paragraph (a) of this counties in the same State. (c) Definition of appellation of origin (1) At least 85 percent of the volume section, except that the year of harvest of the wine is derived from fruit or other for an imported wine will be for imported wine. An appellation of origin for imported wine is the name (or agricultural products grown in the determined in accordance with the laws names) of: counties included in the appellation; and regulations governing vintage date (1) A country; (2) The wine derived from fruit or labeling of wines available for (2) A state, province, territory, or other agricultural products grown in consumption within the country of similar political subdivision of a each county included in the appellation origin. country equivalent to a state or county; is in greater proportion than wine (2) The wine is of the vintage shown, or derived from fruit or other agricultural the laws of the country of origin regulate (3) Two or three states, provinces, products grown in any county that is the appearance of vintage dates upon territories, or similar political not listed; and the labels of wine produced for subdivisions of a country equivalent to (3) The counties are listed in descending order of predominance, consumption within the country of a state. based on the percentage of wine derived origin, the wine has been produced in § 4.97 Eligibility for use of an appellation from fruit or other agricultural products conformity with those laws, and the of origin for fruit wine, agricultural wine, grown or harvested in each county. wine would be entitled to bear the and rice wine. (b) Multistate appellations for vintage date if it had been sold within (a) Appellations of origin for American wine. An appellation of origin the country of origin. The importer of American wine. An American fruit, comprising the names of two or three the wine imported in bottles or the agricultural, or rice wine is entitled to States may be used, if: domestic bottler of wine imported in use the name of a single county, State, (1) At least 85 percent of the volume bulk and bottled in the United States or country (the United States or of the wine is derived from fruit or other must be able to demonstrate, upon America[n]) as an appellation of origin agricultural products grown in the request by the appropriate TTB officer if: States indicated; or a customs officer, that the wine is (1) At least 75 percent of the volume (2) The wine derived from fruit or entitled to be labeled with the vintage of wine is derived from fruit or other agricultural products grown or date. agricultural products grown in the harvested in each State listed on the stated appellation of origin; label is in greater proportion than wine

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derived from fruit or other agricultural (2) The term ‘‘container’’ includes all (b) Statement or representation. For products grown in any State that is not parts of the wine container, including purposes of this subpart, the term listed; any part of a wine container on which ‘‘statement or representation’’ includes (3) The States must be listed in a mandatory information may appear, as any statement, design, device, or descending order of predominance, well as those parts of the container on representation, and includes pictorial or based on the percentage of wine derived which information does not satisfy graphic designs or representations as from fruit or other agricultural products mandatory labeling requirements, as set well as written ones. The term grown or harvested in each State; forth in § 4.61(b); and ‘‘statement or representation’’ includes (4) The wine has been fully finished (3) The term ‘‘packaging’’ includes explicit and implicit statements and (as defined in § 4.1) in one of the labeled any carton, case, carrier, individual representations. States; and covering or other packaging of such (5) The wine conforms to the laws and containers used for sale at retail, but § 4.122 Misleading statements or representations. regulations that govern the composition, does not include shipping cartons or method of manufacture, and designation cases that are not intended to (a) General prohibition. Wine labels, of wines in all of the States listed in the accompany the container to the containers, or packaging may not appellation. consumer. contain any statement or representation, (c) Multistate appellations of origin (b) Statement or representation. For irrespective of falsity, that is misleading for imported wine. An appellation of purposes of the prohibited practices in to consumers as to the age, origin, origin comprising the names of two or this subpart, the term ‘‘statement or identity, or other characteristics of the three states, provinces, territories, or representation’’ includes any statement, wine, or with regard to any other similar political subdivisions of a design, device, or representation, and material factor. country equivalent to a state, all of includes pictorial or graphic designs or (b) Ways in which statements or which are in the same country, may be representations as well as written ones. representations may be misleading. (1) used if: The term ‘‘statement or representation’’ A statement or representation is (1) At least 85 percent of the volume includes explicit and implicit prohibited, irrespective of falsity, if it of the wine is derived from fruit or other statements and representations. directly creates a misleading agricultural products grown or impression, or if it does so indirectly harvested in the states, provinces, § 4.102 False or untrue statements. through ambiguity, omission, inference, territories, or similar political Wine labels, containers, or packaging or by the addition of irrelevant, subdivisions of a country equivalent to may not contain any statement or scientific, or technical matter. For a state that are included in the representation that is false or untrue in example, an otherwise truthful appellation; any particular. statement may be misleading because of (2) The wine derived from fruit or the omission of material information, agricultural products grown or § 4.103 Obscene or indecent depictions. the disclosure of which is necessary to harvested in each named state, Wine labels, containers, or packaging prevent the statement from being province, territory, or similar political may not contain any statement or misleading. subdivisions must be listed in a representation that is obscene or (2) As set forth in § 4.212(b), all descending order of predominance, indecent. claims, whether implicit or explicit, based on the percentage of wine derived must have a reasonable basis in fact. from fruit or other agricultural products Subpart H—Labeling Practices That Any claim on wine labels, containers, or grown or harvested in each; Are Prohibited If They Are Misleading packaging that does not have a (3) The wine derived from fruit or § 4.121 General. reasonable basis in fact, or cannot be other agricultural products grown or adequately substantiated upon the (a) Application. The labeling practices harvested in each state, province, request of the appropriate TTB officer, that are prohibited if misleading set territory, or similar political subdivision is considered misleading. forth in this subpart apply to any wine must be in greater proportion than wine label, container, or packaging. For § 4.123 Guarantees. derived from fruit or other agricultural purposes of this subpart: products grown or harvested in any Wine labels, containers, or packaging (1) The term ‘‘label’’ includes all such area not listed on the label; and may not contain any statement relating labels on wine containers on which (4) The wine conforms to the to guarantees if the appropriate TTB mandatory information may appear, as requirements of the foreign laws and officer finds it is likely to mislead the set forth in § 4.61(a), as well as any regulations that govern the composition, consumer. However, money-back other label on the container; method of production, and designation guarantees are not prohibited. (2) The term ‘‘container’’ includes all of wines available for consumption parts of the wine container, including § 4.124 Disparaging statements. within the country of origin. any part of a wine container on which (a) General. Wine labels, containers, Subpart G—Prohibited Labeling mandatory information may appear, as or packaging may not contain any false Practices well as those parts of the container on or misleading statement that explicitly which information does not satisfy or implicitly disparages a competitor’s § 4.101 General. mandatory labeling requirements, as set product. (a) Application. The prohibitions set forth in § 4.61(b); and (b) Examples. (1) An example of an forth in this subpart apply to any wine (3) The term ‘‘packaging’’ includes explicit statement that falsely disparages label, container, or packaging. For any carton, case, carrier, individual a competitor’s product is, ‘‘Brand X is purposes of this subpart: covering or other packaging of such not aged in oak barrels,’’ when such (1) The term ‘‘label’’ includes all containers used for sale at retail, but statement is not true. labels on wine containers on which does not include shipping cartons or (2) An example of an implicit mandatory information may appear, as cases that are not intended to statement that disparages competitors’ set forth in § 4.61(a), as well as any accompany the container to the products in a misleading fashion is, other label on the container; consumer. ‘‘We do not add arsenic to our wine,’’

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where such a claim is true but it may contain images or designs resembling a simulate or imitate a class or type lead consumers to falsely believe that stamp of the U.S. Government or any designation are also prohibited. other winemakers do add arsenic to State or foreign government, and may (b) Exceptions. This section does not their wine. not contain statements or indications prohibit: (c) Truthful and accurate that the wine is produced, blended, (1) A truthful and accurate statement comparisons. This section does not bottled, packed or sold under, or in of alcohol content; prevent truthful and accurate accordance with, any municipal, State, (2) The use of a brand name of a comparisons between products (such as, Federal, or foreign authorization, law, or distilled spirits or malt beverage ‘‘Our wine contains more grapes than regulations, unless such statement is product as a wine brand name, provided Brand X’’) or statements of opinion required or specifically authorized by that the overall label does not create a (such as, ‘‘We think our wine tastes applicable law or regulations. If a misleading impression as to the identity better than any other wine on the municipal, State, or Federal of the product; market’’). Government permit number is stated on (3) The use of a distilled spirits or a label, containers, or packaging, it may malt beverage cocktail name as a brand § 4.125 Tests or analyses. not be accompanied by any additional name or a distinctive or fanciful name Wine labels, containers, or packaging statement relating to that permit number of a wine product, provided that a may not contain any statement or with the exception of the name and statement of composition, in accordance representation of or relating to analyses, address of the person associated with with § 4.151, appears in the same field standards, or tests, whether or not it is that permit number. of vision as the brand name or a true, that is likely to mislead the (b) If imported wines are covered by distinctive or fanciful name and the consumer. An example of such a a certificate of origin and/or a certificate overall label does not create a misleading statement is ‘‘tested and of vintage date issued by an official duly misleading impression about the approved by our research laboratories’’ authorized by the appropriate foreign identity of the product; if the testing and approval does not in government, the container, except (4) The use of a statement of fact have any significance. where prohibited by the foreign composition that includes a reference to the type of distilled spirits contained § 4.126 Depictions of government government, may refer to that certificate or to the fact of that certification, but the therein; symbols. (5) The use of truthful and accurate container must not contain any (a) Representations of the armed statements about the production of the additional statements relating to the forces and flags. Wine labels, wine, as part of a statement of certificate or certification. Any reference containers, or packaging may not show composition or otherwise, such as ‘‘aged to such a certificate or certification must an image of any government’s flag or in whisky barrels,’’ so long as such be in substantially the following form: any representation related to the armed statements do not create a misleading forces of the United States if the This product was accompanied at the impression as to the identity of the representation, standing alone or time of the importation by a certificate product; or considered together with any additional issued by the (6) The use of terms that simply language or symbols on the label, lllllllllllllllllll compare wine to distilled spirits or malt creates a false or misleading impression (Name of government) beverage products without creating a that the product was endorsed by, made government indicating that the product misleading impression as to the identity by, used by, or made under the is of the product. supervision of, the government lllllllllllllllllll represented by that flag or the armed § 4.129 Health-related statements. (Class and type as stated on the (a) Definitions. When used in this forces of the United States. This section container) does not prohibit the use of a flag as part section, the following terms have the of a claim of American origin or another and (if container bears a statement of meaning indicated: country of origin. vintage date) that the wine is of the (1) Health-related statement means (b) Government seals. Wine labels, vintage of any statement related to health (other containers, or packaging may not lllllllllllllllllll than the warning statement required contain any government seal or other (Year of vintage stated on the container). under part 16 of this chapter) and insignia that is likely create a false or includes statements of a curative or § 4.128 Claims related to distilled spirits or therapeutic nature that, expressly or by misleading impression that the product malt beverages. has been endorsed by, made by, used implication, suggest a relationship by, or produced for, or under the (a) General. Except as provided in between the consumption of alcohol, supervision of, or in accordance with paragraph (b) of this section, no label, wine, or any substance found within the the specification of, that government. carton, case, or any other packaging wine, and health benefits or effects on Seals required or specifically authorized material may contain a statement, health. The term includes both specific by applicable law or regulations and design, or representation that tends to health claims and general references to used in accordance with such law or create a false or misleading impression alleged health benefits or effects on regulations are not prohibited. that the wine is a distilled spirits or health associated with the consumption malt beverage product, or that it of alcohol, wine, or any substance found § 4.127 Depictions simulating government contains distilled spirits or malt within the wine, as well as health- stamps or relating to supervision. beverages. For example, the use of the related directional statements. The term (a) Wine labels, containers, or name of a class or type designation of also includes statements and claims that packaging may not contain any a distilled spirits or malt beverage imply that a physical or psychological statements or representations that product, as set forth in part 5 or 7 of this sensation results from consuming the mislead consumers to believe that the chapter, is prohibited, if the use of that wine, as well as statements and claims wine is manufactured or processed name creates a misleading impression as of nutritional value (for example, under government authority. Wine to the identity of the product. statements of vitamin content). labels, containers, or packaging may not Homophones or coined words that Numerical statements of the calorie,

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carbohydrate, protein, and fat content of statement is presumed misleading bottled, or a retailer for whom the wine the product do not constitute claims of unless it: was bottled or distributed, it may appear nutritional value. (i) Directs consumers in a neutral or as part of the name and address (2) Specific health claim means a type other non-misleading manner to a third statement, as long as the words of health-related statement that, party or other source for balanced ‘‘Product of the United States’’ or expressly or by implication, information regarding the effects on similar dispelling language appears characterizes the relationship of alcohol, health of alcohol or alcohol beverage immediately adjacent to the name and wine, or any substance found within the product consumption; and address statement, in the same size and wine, to a disease or health-related (ii)(A) Includes as part of the health- type of the name and address statement. condition. Implied specific health related directional statement the § 4.132 [Reserved] claims include statements, symbols, following disclaimer: ‘‘This statement vignettes, or other forms of should not encourage you to drink or to § 4.133 Claims regarding terms defined or communication that suggest, within the increase your alcohol consumption for authorized by this part. context in which they are presented, health reasons’’; or (a) Wine labels, containers, or that a relationship exists between wine, (B) Includes as part of the health- packaging may not include any use of a alcohol, or any substance found within related directional statement some other term defined in this part in a manner the wine, and a disease or health-related qualifying statement that the that is not consistent with the condition. appropriate TTB officer finds is definitions set forth in this part. (3) Health-related directional sufficient to dispel any misleading (b) Wine labels, containers, or statement means a type of health-related impression conveyed by the health- packaging materials may not contain statement that directs or refers related directional statement. any coined word or name that consumers to a third party or other § 4.130 Appearance of endorsement. simulates, imitates, or which tends to source for information regarding the create the impression that the wine so effects on health of wine or alcohol (a) General. Wine labels, containers, labeled is entitled to bear, any class, consumption. or packaging may not include the name, type, or authorized designation or the simulation or abbreviation of the (b) Rules for labeling—(1) Health- recognized by the regulations in this name, of any living individual of public related statements. In general, labels part or in part 5 or part 7 of this chapter prominence, or an existing private or may not contain any health-related unless the wine conforms to the public organization, or any graphic, statement that is untrue in any requirements prescribed with respect to pictorial, or emblematic representation particular or tends to create a such designation and is in fact so of the individual or organization, if its misleading impression as to the effects designated on its labels. use is likely to lead a consumer to on health of alcohol consumption. TTB (c) Except as provided by § 4.136, falsely believe that the product has been will evaluate such statements on a case- statements or representations on wine endorsed, made, or used by, or by-case basis and may require as part of labels, containers, or packaging may not produced for, or under the supervision the health-related statement a make claims about the grape varieties of, or in accordance with the disclaimer or some other qualifying used in production of a wine that does specifications of, such individual or statement to dispel any misleading not bear a varietal designation under organization. This section does not impression conveyed by the health- § 4.156 or § 4.157. prohibit the use of such names where related statement. (d) Except as provided by § 4.134, the individual or organization has (2) Specific health claims. (i) TTB will statements or representations on wine provided authorization for their use. consult with the Food and Drug labels, containers, or packaging may not (b) Documentation. The appropriate Administration (FDA), as needed, on the make claims about the year that grapes TTB officer may request documentation use of a specific health claim on the were grown or harvested unless the from the bottler or importer to establish wine. If FDA determines that the use of wine label bears a vintage date in that the person or organization has such a labeling claim is a drug claim accordance with § 4.95, and the claims provided authorization to use the name that is not in compliance with the are consistent with that date. of that person or organization. requirements of the Federal Food, Drug, (c) Disclaimers. Statements or other § 4.134 Statements related to dates or and Cosmetic Act, TTB will not approve representations do not violate this ages. the use of that specific health claim on section if, taken as a whole, they create (a) Statement of age. Except as the wine. no misleading impression as to an provided in paragraphs (b) and (c) of (ii) TTB will approve the use of a implied endorsement either because of this section, a wine label, container, or specific health claim on a wine label the context in which they are presented packaging may not bear any statement only if the claim: Is truthful and or because of the use of an adequate or other representation of age, including adequately substantiated by scientific or disclaimer. representations in the brand name, medical evidence; is sufficiently except for: detailed and qualified with respect to § 4.131 Use of the word ‘‘importer’’ or (1) Vintage wine, in accordance with the categories of individuals to whom similar words. § 4.95; the claim applies; adequately discloses (a) Except as provided in paragraph (2) References relating to methods of the health risks associated with both (b) of this section, labels, containers, or wine production involving storage or moderate and heavier levels of alcohol packaging for wine that is not required aging, in accordance with § 4.56. Any consumption; and outlines the to bear an ‘‘imported by’’ statement such age statement must indicate how categories of individuals for whom any under § 4.67 or § 4.68 may not include long the wine has been aged and the levels of alcohol consumption may the word ‘‘importer’’ or any other word type of aging that occurred, for example, cause health risks. This information that creates the misleading impression ‘‘Barrel aged for ll months;’’ or must appear as part of the specific that the product was imported. (3) Use of the word ‘‘old’’ as part of health claim. (b) If the word ‘‘importer’’ or a similar the brand name; or (3) Health-related directional word is part of the bona fide name of a (4) Additional truthful, accurate, and statements. A health-related directional permittee by or for whom the wine was specific information about the year of

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harvest of the grapes or fruit used to (b) Wine that is labeled with an carbonated grape wine of §§ 4.142, make still, sparkling, or carbonated appellation of origin. Except as 4.143, and 4.144. grape wine, or still, sparkling, or otherwise provided in §§ 4.64 and (b) The use of such a term on the label carbonated fruit wine, respectively. The 4.174, which address brand names of of a wine, container, or packaging of any information must indicate the geographic significance and semi- wine that is made in accordance with percentage of wine derived from grapes generic designations, respectively, any the standards prescribed for still grape or fruit, respectively, grown in each of statement or representation regarding wine, sparkling grape wine, or the labeled harvest years, such as ‘‘60% the origin of the grapes, fruit, or carbonated grape wine but does not of the grapes used to make this wine agricultural materials used to make meet the requirements for use of the were harvested in 2014; the remaining wine that is labeled with an appellation designation named, including its use in 40% were harvested in 2013,’’ or ‘‘this of origin must be consistent with the a brand name, product name, or a wine is a blend of 50% wine made from appellation of origin that appears on the distinctive or fanciful name, is apples harvested in 2012 and 50% wine label. prohibited where the use of such name made from apples harvested in 2011.’’ (c) Wine that is not labeled with an may tend to create a false or misleading When applicable, the years of harvest appellation of origin. Wine that is not impression as to the designation, origin, must be presented in descending order labeled with an appellation of origin or identity of the wine. based on the percentage of wine derived may be labeled with additional (c) This paragraph does not prohibit from grapes or fruit grown in each year. information that provides truthful the use of truthful, accurate, and (b) Statement of bottling date. For information about the origin of the specific additional information on the purposes of paragraph (a) of this section, grapes, fruit, or other agricultural label about the grape varieties used to a statement of the bottling date of a wine materials that were used to produce the make a still grape wine, sparkling grape will not be deemed to be a wine provided that: wine, or carbonated grape wine, representation relative to age, provided (1) The name of the place of origin of provided that the information includes that the statement appears in the every grape variety used to make the following form: ‘‘Bottled in ll’’ the grapes, fruit, or other agricultural products does not appear on the label in wine, listed in descending order of (inserting the year in which the wine predominance. The percentage of each was bottled). a way that creates the misleading impression that the wine is entitled to grape variety may be, but is not required (c) Miscellaneous date statements. to be, shown on the label, along with a Except in the case of vintage dates and an appellation of origin under §§ 4.88– 4.90 or §§ 4.96–4.97; and tolerance of two percentage points. bottling, storage, or aging dates as When shown, percentages must be provided in paragraphs (a) and (b) of (2) Any additional information about the origin of the grapes, fruit, or other shown for all grape varieties listed, and this section, a wine label must not bear the total must equal 100 percent. any date unless, in addition to the date agricultural products of the wine sets and immediately adjacent to the date forth the origin of 100 percent of the § 4.137 Terms relating to intoxicating and in the same size and kind of grapes, fruit, or other agricultural qualities. printing, a statement of the significance products used to make the wine, in Wine labels, containers, or packaging or relevance of the date is provided, descending order of predominance, may not contain any statement or such as ‘‘established’’ or ‘‘founded in’’. together with the place where the wine representation that tends to create the If the date refers to the date of was produced. impression that the wine should be establishment of any business or brand (d) Examples of permissible purchased or consumed based on name, the date and its accompanying statements of origin as additional intoxicating qualities. statement must appear immediately information. A wine that is produced in adjacent to the name of the person, New York and designated as ‘‘red Subpart I—The Standards of Identity company, or brand name to which it wine,’’ may be labeled with a statement for Wine relates if the appropriate TTB officer that indicates the origin and percentage finds that this is necessary in order to § 4.141 The standards of identity in of the gapes that were used to produce general. prevent confusion as to the person, the wine. If 50 percent of the grapes company, or brand name to which the used to make the wine were grown in (a) Standards of identity (class and establishment date applies. This New York, and 50 percent of the grapes type designations) and other paragraph does not authorize the use of used to make the wine were grown in designations (statements of dates referring to the date of growth or Virginia, the wine may bear a statement composition). Sections 4.142 through harvest of the grapes on wines that are on the label to the effect of ‘‘this wine 4.150 provide for the standards of not labeled with vintage dates in was produced and bottled in New York identity for wine. These standards are accordance with § 4.95. from 50 percent New York grapes and broken into nine classes and several 50 percent Virginia grapes.’’ types within each class. In general, the § 4.135 Indications of origin. class and/or type designation is used to (a) General rule. Except as otherwise § 4.136 Use of a varietal name, type meet the mandatory requirement found provided in §§ 4.64 and 4.174, which designation of varietal significance, semi- in § 4.63(a)(2). In certain circumstances, address brand names of geographic generic name, or geographic distinctive a statement of composition as significance and semi-generic designation. prescribed in § 4.151 may be required. designations, respectively, any (a) The use of a varietal name, type In those circumstances, the statement of statement, design, device or designation of varietal significance, composition meets the mandatory label representation on a wine label, semi-generic name, or geographic information requirement in § 4.63(a)(2). container, or packaging that indicates or distinctive designation is presumed to All parts of the designation of wine, implies an origin other than the true be misleading and is thus prohibited on whether mandatory or optional, must place of origin of the wine is prohibited. the label, container, or packaging of any appear together and in lettering This section does not prohibit name and wine that is not made in accordance substantially of the same size and kind. address statements in accordance with with the standards prescribed for still Whenever any term for which a this part. grape wine, sparkling grape wine, or standard of identity has been

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established in this subpart is used in derives its characteristic color from the (10) Muscatel. Muscatel is grape wine this part, the term has the meaning presence or absence of the red coloring having the taste, aroma, and assigned to it by that standard of matter of the skins, juice, or pulp of characteristics generally attributed to identity. grapes may be designated as ‘‘red wine,’’ Muscatel. Muscatel has an alcohol (b) Cellar treatment of wine. See ‘‘white wine,’’ ‘‘blush wine,’’ ‘‘pink content in excess of 14 percent but not § 4.154 for cellar treatments that change wine,’’ ‘‘rose´ wine,’’ or ‘‘amber wine,’’ in excess of 24 percent by volume. The the class and type designation of wine as the case may be. alcohol content is derived in part from and for those cellar treatments that are (2) Grape variety. The names of one or added grape brandy or alcohol. authorized for use without changing the more grape varieties (for example, Muscatel is a grape type designation. class and type of wine. ‘‘chardonnay’’ or ‘‘cabernet franc and (11) ‘‘Specially sweetened grape merlot’’) may be used as the type wine.’’ Grape wine sweetened in § 4.142 Still grape wine—class and type accordance with the standards set forth designation. designation in accordance with § 4.156. (3) Grape type designation of varietal in 26 U.S.C. 5385 must include the (a) Still grape wine. (1) Still grape significance. A grape type designation of words ‘‘extra sweet,’’ ‘‘specially wine is wine produced by the normal varietal significance (for example, sweetened,’’ ‘‘specially sweet,’’ or alcoholic fermentation of the juice of ‘‘moscato’’ or ‘‘scuppernong’’) may be ‘‘sweetened with excess sugar’’ as part sound, ripe grapes (including restored used as the type designation in of the class and type designation. or unrestored pure condensed grape accordance with § 4.157. must), with or without the addition, § 4.143 Sparkling grape wine—class and (4) Semi generic designation of after fermentation, of pure condensed type designation. geographic significance. A semi-generic grape must and with or without added (a) Sparkling grape wine. Sparkling designation of geographic significance spirits of the type authorized for natural grape wine is still grape wine made (for example, ‘‘Angelica’’) may be used wine under 26 U.S.C. 5382, but without effervescent with carbon dioxide as the type designation in accordance other addition or abstraction except as resulting solely from the secondary with § 4.174. may occur in cellar treatment of the type fermentation of the wine within a closed (5) Non-generic designation that is a authorized for natural wine under 26 container, tank or bottle. Sparkling distinctive designations of specific grape U.S.C. 5382. grape wine must contain at least 0.392 wines. A non-generic designation that is (2) Still grape wine may be grams of carbon dioxide per 100 a distinctive designation of specific ameliorated, or sweetened, before, milliliters of wine. during, or after fermentation, in a way grape wine (for example, ‘‘Bordeaux (b) Class designation of sparkling that is consistent with the limits set Blanc’’) may be used as the type wine. Sparkling grape wine must be forth in 26 U.S.C. 5383 for natural grape designation in accordance with § 4.175. designated as ‘‘sparkling wine’’ or wine, provided that grape wine (6) Table wine and light wine. Still ‘‘sparkling grape wine.’’ designated as ‘‘specially sweetened grape wine having an alcoholic content (c) Type designations of sparkling grape wine’’ under paragraph (c)(11) of greater than 7 percent by volume and wine. In addition to the class this section may be sweetened in not in excess of 14 percent by volume designation, sparkling grape wine may accordance with the standards set forth may be designated as ‘‘table wine’’ or be designated with one or more of the in 26 U.S.C. 5385. ‘‘light wine.’’ following type designation(s) that apply. (3) Still grape wine must contain less (7) Dessert wine. Still grape wine (1) Red, white, amber, pink, rose´, and than 0.392 grams of carbon dioxide per having an alcoholic content greater than blush. Sparkling wine that derives its 100 milliliters. The maximum volatile 14 percent by volume and not in excess characteristic color from the presence or acidity, calculated as acetic acid and of 24 percent by volume may be absence of the red coloring matter of the exclusive of sulfur dioxide is 0.14 gram designated as ‘‘dessert wine.’’ skins, juice, or pulp of grapes may be per 100 mL (20 degrees Celsius) for red (8) Angelica. Angelica is grape wine designated as ‘‘sparkling red (or white, wine and 0.12 gram per 100 mL (20 having the taste, aroma, and blush, pink, rose´, or amber, as the case degrees Celsius) for other grape wine, characteristics generally attributed to may be) wine.’’ provided that the maximum volatile angelica. Angelica has an alcohol (2) Grape variety. The names of one or acidity for wine produced from content in excess of 14 percent but not more grape varieties following the word unameliorated juice of 28 or more in excess of 24 percent by volume. The ‘‘sparkling’’ (for example, ‘‘sparkling degrees Brix is 0.17 gram per 100 mL for alcohol content is derived in part from chardonnay’’ or ‘‘sparkling cabernet red wine and 0.15 gram per 100 mL for added grape brandy or alcohol. Angelica franc and merlot’’) may be used as a white wine. has been recognized as a semi-generic type designation for sparkling grape (b) Class designation of grape wine. designation of geographic significance wine in accordance with § 4.156. Still grape wine must be designated as and is subject to the requirements of (3) Grape type designation of varietal ‘‘still grape wine’’ or ‘‘grape wine’’ § 4.174. significance. A grape type designation unless paragraph (c) of this section (9) Madeira, port, and sherry. (for example, ‘‘sparkling moscato’’ or applies. Still grape wine that is Madeira, port, and sherry are grape ‘‘sparkling scuppernong’’) may be used designated with an authorized type wines having the taste, aroma, and as a type designation for sparkling wine designation may use the class characteristics generally attributed to in accordance with § 4.157. designation ‘‘grape wine’’ in addition to such wines. Madeira, port, and sherry (4) Semi-generic designation of the type designation. have an alcohol content in excess of 14 geographic significance. A semi-generic (c) Type designation of still grape percent but not in excess of 24 percent designation of geographic significance wine. Still grape wine may be by volume. The alcohol content is (for example, ‘‘champagne’’) may be designated with one or more of the derived in part from added grape brandy used as the type designation for following type designation(s) that apply or alcohol. These grape wine types have sparkling grape wine in accordance with in place of or in addition to the class been recognized as semi-generic § 4.174. designation. designation of geographic significance (5) Nongeneric designation that is a (1) Red, white, blush, pink, rose´, and and are subject to the requirements of distinctive designation. A nongeneric amber wine. Still grape wine that § 4.174. designation that is a distinctive

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designation of a specific grape wine (for bottling,’’ ‘‘not fermented in the bottle,’’ fruit must and, with or without added example, ‘‘sparkling asti spumante’’) or ‘‘not bottle fermented.’’ The spirits of the type authorized for natural may be used as the type designation in statement ‘‘charmat method’’ or wine under 26 U.S.C. 5382, but without accordance with § 4.176. ‘‘charmat process’’ may be used as other addition or abstraction except as (6) Champagne. Champagne is a type additional information in addition to may occur in cellar treatment of the type of sparkling grape wine with an alcohol but not in lieu of one of the required authorized for natural wine under 26 content of less than 14 percent alcohol statements. This information must be U.S.C. 5382. by volume. Champagne derives its stated on the same label as the product (2) Fruit wine may be ameliorated, or effervescence solely from the secondary designation and must appear in at least sweetened, before, during, or after fermentation of the wine within glass half the type size as the product fermentation, in a way that is consistent containers of not greater than one gallon designation. with the limits set forth in 26 U.S.C. capacity, and possesses the taste, aroma, 5384 for natural fruit wine, provided and other characteristics attributed to § 4.144 Carbonated grape wine—class and that fruit wine designated as ‘‘specially champagne as made in the Champagne type designation. sweetened fruit wine’’ (or with a similar district of France. Champagne has been (a) Carbonated grape wine. term) under paragraph (c)(8) of this recognized as a semi-generic Carbonated grape wine is still grape section may be sweetened in accordance designation of geographic significance wine made effervescent by the injection with the standards set forth in 26 U.S.C. and must be labeled in accordance with of carbon dioxide. Carbonated grape 5385. § 4.174. wine must contain at least 0.392 grams (3) The maximum volatile acidity, (7) Champagne style and champagne of carbon dioxide per 100 milliliters of calculated as acetic acid and exclusive type. A sparkling wine having less than wine. of sulfur dioxide, shall not be, for fruit 14 percent alcohol by volume, and (b) Class designation of carbonated wine that does not contain brandy or having the taste, aroma, and wine. Carbonated grape wine must be wine spirits, more than 0.14 gram, and characteristics generally attributed to designated as ‘‘carbonated wine’’ or for other fruit wine, more than 0.12 champagne but not otherwise ‘‘carbonated grape wine.’’ gram, per 100 milliliters (20 degrees conforming to the standard for (c) Type designation. In addition to Celsius). ‘‘champagne’’ as prescribed by the class designation, carbonated grape (b) Class designation for fruit wine— paragraph (c)(6) of this section may, in wine may be designated with one or (1) Fruit wine derived wholly from one addition to but not in lieu of the class more of the following type kind of fruit. Fruit wine derived wholly designation ‘‘sparkling wine,’’ be further designation(s) that apply. from one kind of fruit must be designated as ‘‘champagne style’’ or (1) Red, white, amber, pink, rose´, and designated with the name of that fruit ‘‘champagne type,’’ along with one of blush. Carbonated wine that derives its followed by the word ‘‘wine.’’ For the required terms denoting use of bulk characteristic color from the presence or example, wine that is derived wholly process set forth in paragraph (d) of this absence of the red coloring matter of the from strawberries, oranges, or peaches section. The designation ‘‘champagne’’ skins, juice, or pulp of grapes may be must be designated as ‘‘strawberry has been recognized as a semi-generic designated as ‘‘carbonated red (or white, wine,’’ ‘‘orange wine,’’ ‘‘peach wine,’’ designation of geographic significance blush, pink, rose´, or amber, as the case respectively. and thus wines labeled with a may be) wine.’’ (2) Fruit wine derived from more than designation of ‘‘champagne style’’ or (2) Grape variety. The names of one or one kind of fruit. Fruit wine derived ‘‘champagne type’’ must be labeled in more grape varieties may be used as a from the fermentation of more than one accordance with § 4.174. type designation for carbonated grape kind of fruit must be designated with (8) Crackling wine, petillant wine, wine (for example, ‘‘carbonated the name of each fruit, followed by the frizzante wine, cremant, perlant, chardonnay’’ or ‘‘carbonated merlot and word ‘‘wine’’ (for example, ‘‘blueberry/ reciotto, and other similar wine. cabernet franc’’) in accordance with banana wine,’’ or ‘‘orange-lime wine’’). Crackling, petillant, frizzante, cremant, § 4.156. (For the rules regarding statements of perlant, and reciotto wines are types of (3) Grape type designation of varietal composition when two types of fruit sparkling grape wines that are normally significance. A grape type designation wine are blended together, see less effervescent than champagne or may be used as a type designation for § 4.151(c)). other similar sparkling wine, but carbonated grape wine (for example, (c) Type designation of fruit wine. containing sufficient carbon dioxide in ‘‘carbonated moscato’’ or ‘‘carbonated Fruit wine may be designated with one solution to produce, upon pouring scuppernong’’) in accordance with or more of the following applicable type under normal conditions, after the § 4.157. designation(s) in place of the class disappearance of air bubbles, a slow and (4) Semi-generic designation of designation. steady effervescence evidenced by the geographic significance. A semi-generic (1) Cider. Fruit wine that is derived formation of gas bubbles flowing designation of geographic significance wholly from apples may be designated through the wine. Such wines may be may be used as a type designation of as ‘‘cider.’’ designated as: ‘‘crackling,’’ ‘‘petillant,’’ carbonated grape wine (for example, (2) Perry. Fruit wine that is derived ‘‘frizzante,’’ ‘‘cremant,’’ ‘‘perlant,’’ and ‘‘carbonated Burgundy’’) in accordance wholly from pears may be designated as ‘‘reciotto’’ wines. with § 4.174. ‘‘perry.’’ (d) Bulk process. In addition to the (3) Sparkling fruit wine. Fruit wine product designation, any sparkling § 4.145 Fruit wine—class and type that is rendered effervescent (at least grape wine that derives its effervescence designation. 0.392 grams of carbon dioxide per 100 from secondary fermentation in (a) Fruit wine. (1) Fruit wine is wine milliliters of wine) by carbon dioxide containers greater than 1-gallon capacity produced by the normal alcoholic resulting solely from the secondary must be labeled with one or more of the fermentation of the juice of sound, ripe fermentation of the wine within a closed following statements: ‘‘Bulk process,’’ fruit (including restored or unrestored container, tank, or bottle may be ‘‘fermented outside the bottle,’’ pure condensed fruit must) other than designated as such provided that the ‘‘secondary fermentation outside the grapes, with or without the addition, name of the fruit follows the word bottle,’’ ‘‘secondary fermentation before after fermentation, of pure condensed ‘‘sparkling.’’ For example, a fruit wine

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that is derived wholly from peaches and (3) Agricultural wine may be percent by volume may be designated as rendered effervescent as indicated in ameliorated in accordance with the ‘‘(name of agricultural product(s)) table this paragraph, must be designated as standards set forth in part 24 of this wine’’ or ‘‘(name of agricultural ‘‘sparkling peach wine.’’ If a fruit wine chapter. The maximum volatile acidity, product(s)) light wine.’’ is authorized to carry the designation of calculated as acetic acid and exclusive (4) Agricultural dessert wine. ‘‘sparkling’’ and is derived from more of sulfur dioxide, shall not be, for wine Agricultural wine having an alcoholic than one type of fruit, it must be of this class, more than 0.14 grams per content greater than 14 percent by designated as ‘‘sparkling fruit wine’’ and 100 milliliters (20 degrees Celsius). volume and not in excess of 24 percent carry a statement that indicates the (b) Class designation of agricultural by volume may be designated as ‘‘(name types of fruit that the wine is made wine—(1) Agricultural wine derived of agricultural product(s)) dessert from, or as ‘‘sparkling (name all fruits) wholly from one kind of agricultural wine.’’ wine.’’ product. Agricultural wine derived wholly from one kind of agricultural § 4.147 Aperitif—class and type (4) Carbonated fruit wine. Fruit wine designation. that is rendered effervescent (at least product must be designated by the word (a) Aperitif wine. Aperitif wine is 0.392 grams of carbon dioxide per 100 ‘‘wine’’ qualified by the name of the compounded from grape wine milliliters of wine) by carbon dioxide agricultural product. For example, containing added brandy or alcohol may may be designated as such provided that agricultural wine that is derived wholly be flavored with herbs and other natural the name of the fruit follows the word from dandelions, raisins, or agave must aromatic flavoring materials, with or ‘‘carbonated.’’ For example, a fruit wine be designated as ‘‘dandelion wine,’’ without the addition of caramel for that is wholly derived from peaches and ‘‘raisin wine,’’ or ‘‘agave wine,’’ respectively. Agricultural wine derived coloring purposes; and possess the taste, rendered effervescent as indicated in aroma, and characteristics generally this paragraph must be designated as wholly from honey may be designated as either ‘‘honey wine’’ or ‘‘mead.’’ attributed to aperitif wine; and must ‘‘carbonated peach wine.’’ If a fruit wine have an alcoholic content of not less is authorized to carry the designation of (2) Agricultural wine derived from more than one kind of agricultural than 15 percent by volume. ‘‘carbonated’’ and is derived from more (b) Class designation of aperitif wine. than one type of fruit, it must be product. Agricultural wine derived from the fermentation of more than one kind Aperitif wine must be designated as designated as ‘‘carbonated fruit wine’’ aperitif wine unless paragraph (c) of this and carry a statement indicating the of agricultural product must be designated with the name of each section applies. types of fruit the wine is made from, or (c) Type designation of aperitif wine. as ‘‘carbonated (name all fruits) wine.’’ agricultural material, followed by the word ‘‘wine’’ (for example, ‘‘dandelion The following type designation may be (5) Fruit table wine and fruit light used for aperitif wine in place of the wine. Fruit wine that has an alcohol honey wine). (For the rules regarding statements of composition when two class designation as applicable. content greater than 7 percent by (1) Vermouth. Vermouth is a type of types of agricultural wine are blended volume and not in excess of 14 percent aperitif wine made from grape wine, together, see § 4.151(c)). by volume may be designated as ‘‘(name having the taste, aroma, and of fruit(s)) table wine’’ or ‘‘(name of (c) Type designations. One or more of the following type designations may be characteristics generally attributed to fruit(s)) light wine.’’ vermouth. Vermouth has been (6) Fruit dessert wine. Fruit wine that used in place of the class designation for agricultural wine: recognized as a generic designation of has an alcohol content greater than 14 geographical significance and may be percent by volume and not in excess of (1) Sparkling agricultural wine. Agricultural wine that is rendered designated as ‘‘vermouth.’’ 24 percent by volume may be (2) [Reserved]. designated as ‘‘(name of fruit(s)) dessert effervescent (at least 0.392 grams of wine.’’ carbon dioxide per 100 milliliters of § 4.148 Rice wine—class and type (7) Specially sweetened fruit wine. wine) by carbon dioxide resulting solely designation. Fruit wine sweetened in accordance from the secondary fermentation of the (a) Rice wine. Rice wine is produced with the standards set forth in 26 U.S.C. wine within a closed container, tank, or from the alcoholic fermentation of rice, 5385 must include the words ‘‘extra bottle may be designated as ‘‘sparkling with or without the addition of distilled sweet,’’ ‘‘specially sweetened,’’ (name of agricultural product) wine.’’ spirits. ‘‘specially sweet,’’ or ‘‘sweetened with For example, agricultural wine that is (b) Class designation of rice wine. excess sugar’’ as part of the class and derived wholly from dandelions and Wine of this class must be designated as type designation. rendered effervescent as stated in this rice wine unless it meets one of the type paragraph must be designated as designations in paragraph (c) of this § 4.146 Agricultural wine—class and type ‘‘sparkling dandelion wine.’’ section. designation. (2) Carbonated agricultural wine. (c) Type designation of rice wine. One (a) Agricultural wine. (1) Agricultural Agricultural wine that is rendered or more of the following type wine is made from suitable agricultural effervescent (at least 0.392 grams of designations may be used for rice wine products other than the juice of grapes, carbon dioxide per 100 milliliters of as applicable. berries, or other fruits and is produced wine) by carbon dioxide may be (1) Sake´. Sake´ is produced from rice by the normal alcoholic fermentation of designated as ‘‘carbonated (name of in accordance with the commonly sound fermentable agricultural agricultural product) wine.’’ For accepted method of manufacture of such products, either fresh or dried, or of the example, agricultural wine that is product. Sake´ has been designated as a restored or unrestored pure condensed derived wholly from dandelions and generic designation of geographic must thereof, and without added rendered effervescent as stated in this significance under § 4.183. distilled spirits. paragraph must be designated as (2) Gyeongju Beopju. Gyeongju Beopju (2) Agricultural wine may not be ‘‘carbonated dandelion wine.’’ is a rice wine produced in the Republic flavored or colored; however, hops may (3) Agricultural table wine and light of Korea in accordance with the laws be used in the production of honey wine wine. Agricultural wine that has an and regulations of the Republic of Korea in accordance with the standards set alcohol content greater than 7 percent governing the manufacture of such forth in part 24 of this chapter. by volume and not in excess of 14 product.

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(3) Rice table wine and light wine. solution has been added in excess of the or after fermentation, will result in an Rice wine that has an alcohol content production standards for such wine as alteration of class or type of wine: greater than 7 percent by volume and prescribed in part 24 of this chapter and (1) Treatment of any class or type of not in excess of 14 percent by volume in an amount which is in excess of the wine with a substance that is not a may be designated as ‘‘rice table wine’’ limitations prescribed in the standards natural component of the wine and that or ‘‘rice light wine.’’ of identity for these products, unless, in remains in the wine, provided, that the (4) Rice dessert wine. Rice wine the case of ‘‘fruit wine’’ and ‘‘wine from presence in finished wine of not more having an alcoholic content greater than other agricultural products’’ the normal than 350 parts per million of total sulfur 14 percent by volume and not in excess acidity of the material from which such dioxide, or sulfites expressed as sulfur of 24 percent by volume may be wine is produced is 20 parts or more per dioxide, is not prohibited under this designated as ‘‘rice dessert wine.’’ thousand and the volume of the paragraph; resulting product has not been increased (2) Treatment of any class or type of § 4.149 Retsina wine—designation. more than 60 percent by such addition. wine with a substance that is not foreign ‘‘Retsina wine’’ is still grape table to the wine but that remains in the wine § 4.151 Statements of composition. wine fermented or flavored with resin. in larger quantities than is naturally and Retsina has been recognized as a semi- (a) General. If the class of the wine is normally present in other wines of the generic designation of geographic not defined in one of the standards of same class or type that are not so significance and is subject to the rules identity specified in subpart I of this treated; found in § 4.174 with regard to semi- part, or the wine has been altered, (3) Treatment of any class or type of generic designations. treated, or blended beyond the wine with a method or material of any § 4.150 Imitation and substandard or other standards permitted by § 4.154, a kind to such an extent or in such a than standard wine—designation. truthful and adequate statement of manner as to affect the basic composition must appear on the label as (a) ‘‘Imitation wine’’ shall bear as a composition of the wine by altering any the class designation. A distinctive or part of its designation the word of its characteristic elements; fanciful name, or a designation in ‘‘imitation,’’ and shall include: (4) Blending wine of one class with accordance with trade understanding (1) Any wine containing synthetic wine of another class or blending of may appear in addition to the statement materials. wines of different types within the same (2) Any wine made from a mixture of of composition. class; and water with residue remaining after (b) The statement of composition may (5) Treatment of any class or type of thorough pressing of grapes, fruit, or not include any reference to a varietal wine for which a standard of identity is other agricultural products. (grape type) designation, type prescribed in this part with sugar, water, (3) Any class or type of wine the taste, designation of varietal significance, or a sugar-water solution in excess of aroma, color, or other characteristics of semi-generic geographic type the quantities specifically authorized in which have been acquired, in whole or designation, or geographic distinctive that standard of identity, except that the in part, by treatment with methods or designation. class or type of such wine is not deemed materials of any kind (except as (c) The appropriate TTB officer may to be altered: permitted in § 4.154(c)(5)), if the taste, require a statement of composition to (i) If fruit wine, agricultural wine, aroma, color, or other characteristics of identify the base wine(s), including aperitif wine, rice wine, and imitation normal wines of such class or type are blends of wine or fermentable materials, wine have a high normal acidity, if the acquired without such treatment. as well as other materials added to the total solids content is not more than 22 (4) Any wine made from must wine before, during, and after grams per 100 cubic centimeters and the concentrated at any time to more than fermentation, as appropriate, in order to content of natural acid is not less than 80° brix. ensure that the label provides adequate 7.69 grams per liter; or (b) ‘‘Substandard wine’’ or ‘‘other information about the identity of the (ii) If grape wine, fruit wine, than standard wine’’ shall bear as a part product. Where a product consists agricultural wine, aperitif wine, rice of its designation the words entirely of a blend of two different types wine, retsina, and imitation wine have ‘‘substandard’’ or ‘‘other than standard,’’ of fruit or agricultural wine, the the normal acidity of 20 grams per liter, and shall include: statement of composition must include the volume of the resulting product has (1) Any wine having a volatile acidity of the names of the types of wine (such been increased not more than 60 percent in excess of the maximum prescribed as, ‘‘blueberry wine and apple wine’’ or by the addition of sugar, water, or a therefor in subpart I of this part. ‘‘mead/rhubarb wine’’). sugar-water solution for the sole (2) Any wine for which no maximum purpose of correcting natural § § 4.152–4.153 [Reserved] volatile acidity is prescribed in subpart deficiencies due to such acidity, and I of this part, inclusive, having a volatile Cellar Treatment and Alteration of (except in the case of such wine when acidity, calculated as acetic acid and Class and Type produced from fruit or berries other exclusive of sulfur dioxide, in excess of than grapes) the phrase ‘‘Made with 0.14 gram per 100 milliliters (20 degrees § 4.154 Cellar treatment and alteration of over 35 percent sugar-water solution’’ is class or type. Celsius). included as part of the class and type (3) Any wine for which a standard of (a) Statement of composition. If the statement. identity is prescribed in this subpart I of class or type of any wine is altered, and (c) Authorized cellar treatments: The this part, inclusive, which, through the product as altered does not fall following treatments are authorized for disease, decomposition, or otherwise, within any other class or type use provided that they do not result in fails to have the composition, color, and designations specified in §§ 4.142 the alteration of the class or type of the clean vinous taste and aroma of normal through 4.150, then such wine must be wine under the provisions of paragraph wines conforming to such standard. labeled with a statement of composition (b) of this section: (4) Any ‘‘grape wine,’’ ‘‘fruit wine,’’ or in accordance with § 4.151. (1) Treatment with filtering ‘‘wine from other agricultural products’’ (b) Alteration of class or type. Any of equipment, or with fining or sterilizing to which sugar, water, or a sugar-water the following, occurring before, during, agents;

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(2) Treatment with pasteurization or (ii) The following statement is shown are used for American wines. A name refrigeration as necessary to bring the on any label: ‘‘contains not less than 51 specified in this section may appear on wine to commercial standards in percent (name of variety).’’ This a label as a type designation for accordance with acceptable cellar statement does not have to appear if 75 American wine only if the wine is also practice but only in such a manner and percent or more of the wine is derived labeled with an appellation of origin as to such an extent as not to change the from grapes of the named variety; and defined in § 4.157. basic composition of the wine or (iii) The entire qualifying percentage (a) Muscadine. Muscadine is the name eliminate any of its characteristic of the named variety was grown in the of an American wine that derives at elements; labeled appellation of origin area. least 75 percent of its volume from (3) Treatment with methods and (2) Wine made from any variety of any Muscadinia rotundifolia grapes. materials authorized for use under part species found by the appropriate TTB (b) Muscatel. Muscatel is the name of 24 of this chapter (such as correcting officer upon appropriate application to a American wine that derives its cloudiness, precipitation, or abnormal be too strongly flavored at 75 percent predominant taste, aroma, and color) to the minimum extent necessary minimum varietal content may be characteristics, and at least 75 percent of to correct the wine; labeled with the varietal name if: its volume from any Muscat grape (4) Treatment with constituents (i) Not less than 51 percent of the source, and that conforms to the naturally present in the kind of fruit or wine is derived from grapes of that standards specified in § 4.142(c)(11). other agricultural product from which variety; (c) Muscat or moscato. Muscat or the wine is produced for the purpose of (ii) The statement ‘‘contains not less moscato is the name of an American correcting deficiencies of these than 51 percent (name of variety)’’ is wine that derives at least 75 percent of constituents, but only to the extent that shown on the label (except that this its volume from any Muscat grape such constituents would be present in statement need not appear if 75 percent source. normal wines of the same class or type or more of the wine is derived from (d) Scuppernong. Scuppernong is the not so treated; grapes of the named variety); and name of an American wine that derives (iii) The entire qualifying percentage (5) Treatment of any class or type of at least 75 percent of its volume from of the named variety was grown in the wine involving the use of volatile fruit- bronze Muscadinia rotundifolia grapes. flavor concentrates in the manner labeled appellation of origin. (d) Two or more varieties. The names provided in section 5382 of the Internal § 4.158 [Reserved] of two or more grape varieties may be Revenue Code; and used as the type designation if: Generic, Semi–Generic, and Non– (6) In accordance with the provisions (1) Not less than 85 percent of the Generic Designations of Geographic of §§ 4.143 through 4.157, carbon wine is derived from grapes of the Significance dioxide may be used to maintain labeled varieties; counterpressure during the transfer of § 4.173 Generic designations of (2) The wine derived each grape geographic significance. finished sparkling wines from bulk variety listed on the label is in greater processing tanks to bottles, or from proportion than wine derived from (a) Definition. A generic designation is bottle to bottle, provided that the carbon grapes of any variety that is not listed; the name of a class or type of wine that dioxide content of the wine shall not be and once had geographic significance but increased by more than 0.009 gram. per (3) The varieties must be listed in has been deemed by the Administrator 100 mL during the transfer operation. descending order of predominance, to have lost any geographic significance. (b) List of generic designations. § 4.155 [Reserved] based on the percentage of wine derived from each variety of grape. Vermouth and Sake´ are generic Grape Type Labeling (e) List of approved variety names for designations that may be used as a class American wine. The name of a grape or type designation, in accordance with § 4.156 Varietal (grape type) labeling as variety may be used in a type subpart I of this part. type designations. designation for an American wine only (a) General. The names of one or more § 4.174 Semi-generic designations of if that name has been approved by the geographic significance. grape varieties may be used as the type Administrator. A list of approved grape (a) Definition. A semi-generic designation of a grape wine only if the variety names appears in subpart J of designation of geographic significance is wine is also labeled with an appellation this part. of origin, as defined in § 4.88. (f) List of administratively approved a geographic term which is also the (b) Use of one variety name. Except as grape variety names. TTB designation of a class or type of wine otherwise provided in paragraph (c)(1) administratively approves grape variety and which has been deemed to have or (2) of this section, the name of a names pending future rulemaking. An become semi-generic by the single grape variety may appear as a administrative approval is temporary in Administrator. A semi-generic type designation on a wine label only if: nature, and it means that TTB will allow designation may be used to designate (1) Not less than 75 percent of the the use of the grape variety name as a wine of an origin other than that wine is derived from grapes of that type designation on a wine label indicated by such name only when used variety, and pending rulemaking. An administrative in accordance with the rules set forth in (2) The entire qualifying percentage of approval may be revoked as a result of paragraph (c) of this section. the named variety was grown in the area subsequent rulemaking on the grape (b) List of semi-generic designations of described by the labeled appellation of variety name. See the TTB website, at geographic significance. Each of the origin. https://www.ttb.gov for a list of following names has been found to be (c) Exceptions. (1) Wine made from administratively approved grape variety semi-generic: any Vitis labrusca variety (exclusive of names. (1) Angelica (associated with wine hybrids with Vitis labrusca parentage) from the United States); may be labeled with the variety name if: § 4.157 Type designations of varietal (2) Burgundy (associated with wine (i) Not less than 51 percent of the significance for American wines. from France); wine is derived from grapes of the This section specifies type (3) Chablis (associated with wine from named variety; designations of varietal significance that France);

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(4) Champagne (associated with wine (2) The wine conforms to the § 4.176–4.177 [Reserved] from France); requirements of the foreign laws and (5) Chianti (associated with wine from regulations that govern the composition, Subpart J—American Grape Variety Names Italy); method of production, and designation (6) Claret (associated with wine from of wines available for consumption § 4.191 Approval of grape variety names. France); within the country of origin. (7) Haut Sauterne (associated with (a) Any interested person may wine from France); § 4.175 Nongeneric designation of petition the Administrator for the (8) Madeira (associated with wine geographic significance and nongeneric approval of a grape variety name. The from Portugal); designations that are distinctive petition may be in the form of a letter (9) Hock (associated with wine from designations of specific grape wines. and should provide evidence of the Germany); following: (a) Definition. A nongeneric (10) Malaga (associated with wine (1) Acceptance of the new grape designation of geographic significance is from Spain), variety; (11) Marsala (associated with wine a name of geographic significance that (2) The validity of the name for from Italy); has not been found by the Administrator identifying the grape variety; (12) Moselle (associated with wine to be generic or semi-generic. A from France); nongeneric name of geographic (3) That the variety is used or will be used in winemaking; and (13) Port (associated with wine from significance may be deemed to be the Portugal); distinctive designation of a wine if the (4) That the variety is grown and used (14) Retsina (associated with wine Administrator finds that it is known to in the United States. from Greece); the consumer and to the trade as the (b) For the approval of names of new (15) Rhine wine (associated with wine grape varieties, documentation from Germany); designation of a specific wine of a particular place or region, submitted with the petition to provide (16) Sauterne (associated with wine evidence that the requirements in distinguishable from all other wines. from France); paragraph (a) of this section have been (17) Sherry (associated with wine (b) Use of nongeneric designations of met may include: from Spain); and geographic significance. Nongeneric (18) Tokay (associated with wine from (1) Reference to the publication of the designations of geographic significance name of the variety in a scientific or Hungary). are appellation of origin names that may (c) Use of authorized semi-generic professional journal of horticulture or a be used only to designate wines of the designations of geographic significance. published report by a professional, A semi-generic designation of origin indicated by such name in scientific or winegrowers’ organization; geographic significance may be used to accordance with §§ 4.88 through 4.91, as (2) Reference to a plant patent, if so designate wines of an origin other than applicable. Examples of nongeneric patented; and that indicated by such name only if: names that are not distinctive (3) Information pertaining to the (1) There appears an appropriate designations of specific grape wines are commercial potential of the variety, appellation of origin disclosing the true American, California, Lake Erie, Napa such as the acreage planted and its place of origin of the wine in the same Valley, New York State, French, and location or market studies. field of vision as the semi-generic Spanish. Additional examples of foreign (c) The Administrator will not designation; nongeneric names are listed in subpart approve a grape variety name if: (2) The person, or the successor in C of part 12 of this chapter. (1) The name has previously been interest of a person, using a semi- (c) Use of nongeneric names that are used for a different grape variety; generic designation name listed in distinctive designations of specific grape (2) The name contains a term or name paragraphs (b)(2) through (18) of this wines. Nongeneric designations of found to be misleading under § 4.122; or section, held a COLA or a certificate of (3) The name of a new grape variety exemption from label approval (see geographic significance are appellation contains the term ‘‘Riesling.’’ § 4.22) issued before March 10, 2006, for of origin names that may be used only a wine label bearing the same brand to designate wines of the origin (d) For new grape varieties developed name or brand name and a distinctive indicated by such name in accordance in the United States, the Administrator or fanciful name and on which the semi- with §§ 4.88 through 4.91, as applicable, may determine if the use of names generic designation appeared; and and that may also be used as the class which contain words of geographical (3) The wine so designated conforms and type designation of the wine. significance, place names, or foreign to the standard of identity, if any, for Examples of nongeneric names that are words are misleading under § 4.122. The such wine contained in the regulations distinctive designations of specific Administrator will not approve the use in this part or, if there is no such grape wines are: Bordeaux Blanc, of a grape variety name found to be standard, to the trade understanding of Bordeaux Rouge, Graves, Medoc, Saint- misleading. such class or type. Julien, Chateau Yquem, Chateau (e) TTB administratively approves (d) Imported wine originating from the Margaux, Chateau Lafite, Pommard, grape variety names pending future place indicated by the name. In the case Chambertin, Montrachet, Rhone, rulemaking. An administrative approval of wine originating from the place Liebfraumilch, Rudesheimer, Forster, is temporary in nature, and it means indicated by the name, the semi-generic Deidesheimer, Schloss Johannisberger, that TTB will allow the use of the grape variety name as a type designation on a designation may be used to designate Lagrima, and Lacryma Christi. A list of wine label pending rulemaking. An the wine only if: foreign distinctive designations, as (1) The wine conforms either to the administrative approval may be revoked standard of identity specified for the determined by the Administrator, as a result of subsequent rulemaking on wine in subpart I of this part or, if no appears in subpart D of part 12 of this the grape variety name. The list of such standard exists, to the trade chapter. administratively approved grape variety understanding of the class or type of the names can be found on TTB’s website wine; and at https://www.ttb.gov.

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§ 4.192 List of approved names. Carmine Fry The following grape variety names Carnelian Fume´ blanc (Sauvignon blanc) have been approved by the Cascade Furmint Administrator for use as type Castel 19–637 Gamay noir designations for American wines. When Catawba Garnacha (Grenache, Grenache noir) more than one name may be used to Cayuga White Garnacha blanca (Grenache blanc) identify a single variety of grape, the Centurion Garronet synonym is shown in parentheses Chambourcin Geneva Red 7 following the grape variety name. Grape Chancellor Gewu¨ rztraminer variety names may be spelled with or Charbono Gladwin 113 without the hyphens or diacritic marks Chardonel Glennel indicated in the list. The list of grape Chardonnay Gold variety names administratively Chasselas dore´ Golden Isles approved under § 4.191(e) is available Chelois Golden Muscat on the TTB website at https:// Chenin blanc Graciano www.ttb.gov. Chief Grand Noir Chowan Green Hungarian Aglianico Cinsaut (Black Malvoisie) Grenache (Garnacha, Grenache noir) Agawam Clairette blanche Grenache blanc (Garnacha blanca) ˜ Albarino (Alvarinho) Clinton Grenache noir (Garnacha, Grenache) Albemarle Colombard (French Colombard) Grignolino Aleatico Colobel Grillo Alicante Bouschet Corot noir Gros Verdot ´ Aligote Cortese Gru¨ ner Veltliner ˜ Alvarelhao Corvina Helena ˜ Alvarinho (Albarino) Concord Herbemont Arneis Conquistador Higgins Aurore Couderc noir Horizon Auxerrois Counoise Hunt Bacchus Cowart Iona Baco blanc Creek Interlaken Baco noir Crimson Cabernet Isabella Barbera Cynthiana (Norton) Island Belle (Campbell Early) Beacon Dearing Ives Beclan De Chaunac James Bellandais Delaware Jewell Beta Diamond Joannes Seyve 12–428 Biancolella Dixie Joannes Seyve 23–416 Black Corinth Dolcetto Kerner Black Malvoisie (Cinsaut) Doreen Kay Gray Black Monukka Dornfelder Kleinberger Black Muscat (Muscat Hamburg) Dulcet La Crescent Black Pearl Durif (Petite Sirah) LaCrosse Blanc Du Bois Dutchess Lagrein Blaufra¨nkish (Lemberger, Limberger) Early Burgundy Lake Emerald Blue Eye Early Muscat Lambrusco Bonarda Edelweiss Landal Bountiful Eden Landot noir Brianna Ehrenfelser Lenoir Burdin 4672 Ellen Scott Le´on Millot Burdin 5201 Elvira Lemberger (Blaufra¨nkish, Limberger) Burdin 11042 Emerald Riesling Limberger (Blaufra¨nkisch, Lemberger) Burgaw Erbaluce Louise Swenson Burger Favorite Lucie Kuhlmann Cabernet Diane Feher Szagos Madeline Angevine Cabernet Dore´ Ferna˜o Pires Magnolia Cabernet franc Fern Munson Magoon Cabernet Pfeffer Fiano Malbec Cabernet Sauvignon Flame Tokay Malvasia bianca (Moscato greco) Calzin Flora Mammolo Campbell Early (Island Belle) Florental Mare´chal Foch Canada Muscat Folle blanche Marquette Canaiolo (Canaiolo Nero) Forastera Marsanne Canaiolo Nero (Canaiolo) Fredonia Mataro (Monastrell, Mourve`dre) Captivator Freedom Melody Carignan (Carignane) Freisa Melon (Melon de Bourgogne) Carignane (Carignan) French Colombard (Colombard) Melon de Bourgogne (Melon) Carlos Frontenac Merlot Carmene`re Frontenac gris Meunier (Pinot Meunier)

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Mish Rosette Vergennes Mission Roucaneuf Vermentino Missouri Riesling Rougeon Vidal blanc Monastrell (Mataro, Mourve`dre) Roussanne Vignoles (Ravat 51) Mondeuse (Refosco) Royalty Villard blanc Montefiore Rubired Villard noir Montepulciano Ruby Cabernet Vincent Moore Early St. Croix Viognier Morio-Muskat St. Laurent Vivant Moscato greco (Malvasia bianca) St. Pepin Welsch Rizling Mourve`dre (Mataro, Monastrell) St. Vincent Watergate Mu¨ ller-Thurgau Sabrevois Welder Mu¨ nch Sagrantino White Riesling (Riesling) Muscadelle Saint Macaire Wine King Muscat blanc (Muscat Canelli) Salem Yuga Muscat Canelli (Muscat blanc) Salvador Zinfandel Muscat du Moulin Sangiovese Zinthiana Muscat Hamburg (Black Muscat) Sauvignon blanc (Fume´ blanc) Zweigelt Muscat of Alexandria Sauvignon gris Muscat Ottonel Scarlet § 4.193 Alternative names permitted for Naples Scheurebe temporary use. Nebbiolo Se´millon (a) Johannisberg Riesling. The name Ne´grette Sereksiya ‘‘Johannisberg Riesling’’ may be used as Negrara Seyval (Seyval blanc) the type designation in lieu of Negro Amaro Seyval blanc (Seyval) ‘‘Riesling’’ for wines bottled prior to Nero d’Avola Shiraz (Syrah) January 1, 2006. New York Muscat Siegerrebe (b) Agwam. The name ‘‘Agwam’’ may Niagara Siegfried be used as the type designation in lieu Noah Southland of ‘‘Agawam’’ for wines bottled prior to Noble Souza˜o October 29, 2012. Noiret Steuben Norton (Cynthiana) Stover Subpart K—Standards of Fill and Ontario Sugargate Authorized Container Sizes Orange Muscat Sultanina (Thompson Seedless) § 4.201 General. Palomino Summit Pamlico Suwannee (a) Except as provided in paragraph Pedro Ximenes Sylvaner (b) of this section, no person engaged in Peloursin Symphony business as a producer, blender, Petit Bouschet Syrah (Shiraz) importer, or wholesaler of wine, directly Petit Manseng Swenson Red or indirectly, or through an affiliate, Petit Verdot Tannat may sell or ship or deliver for sale or Petite Sirah (Durif) Tarheel shipment, or otherwise introduce in Peverella Taylor interstate or foreign commerce, or Picpoul (Piquepoul blanc) Tempranillo (Valdepen˜ as) receive therein, or remove from customs Pinotage Teroldego custody for consumption, any wine in Pinot blanc Thomas containers, unless the wine is bottled in Pinot Grigio (Pinot gris) Thompson Seedless (Sultanina) conformity with §§ 4.202 and 4.203. Pinot gris (Pinot Grigio) Tinta Madeira (b) Sections 4.202 and 4.203 do not Pinot Meunier (Meunier) Tinto ca˜o apply to: Pinot noir Tocai Friulano (1) Rice wine; Piquepoul blanc (Picpoul) Topsail (2) Wine packed in containers of 18 Prairie Star Touriga liters or more; Precoce de Malingre Traminer (3) Imported wine in the original Pride Traminette containers in which such wine entered Primitivo Trebbiano (Ugni blanc) customs custody, if the wine was Princess Trousseau bottled or packed before January 1, Rayon d’Or Trousseau gris 1979; or Ravat 34 Ugni blanc (Trebbiano) (4) Imported wine bottled or packed Ravat 51 (Vignoles) Valdepen˜ as (Tempranillo) before January 1, 1979, and certified as Ravat noir Valdiguie´ to such in a statement, available to the Redgate Valerien appropriate TTB officer upon request, Refosco (Mondeuse) Valiant signed by an official duly authorized by Regale Valvin Muscat the appropriate foreign government. Reliance Van Buren (c) Section 4.203 does not apply to Riesling (White Riesling) Veeblanc wine domestically bottled or packed, Rkatsiteli (Rkatziteli) Veltliner either in or out of customs custody, Rkatziteli (Rkatsiteli) Ventura before January 1, 1979, if the wine was Roanoke Verdelet bottled or packed according to the Rondinella Verdelho standards of fill (listed in ounces,

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quarts, and gallons) prescribed by § 4.204 Aggregate packaging to meet bottler’s premises or from customs regulation before that date. standard of fill requirements. custody, as applicable. (a) Under the conditions set forth in (b) Labels with revisions. Where labels § 4.202 Standard wine containers. paragraphs (b) through (f) of this on containers reflect revisions to the (a) General. Wine must be bottled in section, industry members may use approved label that have been made in standard wine containers, as defined in aggregate packaging to satisfy a standard compliance with allowable revisions this paragraph. A standard wine of fill required under § 4.203. In other authorized by TTB Form 5100.31 or container is a container that is made, words, industry members may bottle otherwise authorized by TTB, the bottler formed, and filled in such a way that it wine in containers that do not meet a or importer must, upon request by the does not mislead purchasers as regards standard of fill, as long as those appropriate TTB officer, identify the it contents. An individual carton or containers are then packaged together in COLA covering the product if the other container of a bottle may not be a larger container and the entire net product is required to be covered by a so designed as to mislead purchasers as contents of the aggregate package meets COLA. TTB may request such to the size of the bottle it contains. a standard of fill. For example, thirty 25- information for a period of five years (b) Headspace. Wine containers must milliliter (mL) bottles may be packaged from the date that the products covered be designed and filled so that the together to meet the 750 mL standard of by the COLA were removed from the headspace, or empty space between the fill. The industry member must submit bottler’s premises or from customs top of the wine and the top of the the actual external container and a custody, as applicable. container, meets the following sample of one of the internal containers (c) Other recordkeeping requirements specifications: to TTB together with the industry under this part. See § 4.30 for other (1) If the net contents stated on the member’s application for label approval. recordkeeping requirements under this label are 187 milliliters or more, the (b) The class and type, tax class, and part. headspace must not exceed 6 percent of alcohol content of the wine in each of the container’s total capacity after the individual internal containers of the § 4.212 Substantiation requirements. closure. aggregate package must be the same. (a) Application. The substantiation (2) In the case of all other containers, (c) The external container, as well as requirements of this section apply to the headspace must not exceed 10 each of the individual internal any claim made on any label or percent of the container’s total capacity containers, must be labeled with all of container subject to the requirements of after closure. the mandatory label information this part. (c) Design. Regardless of the required by this part and parts 16 and (b) Reasonable basis in fact. All correctness of the stated net contents, a 24 of this chapter; however, an claims, whether implicit or explicit, wine container is deemed to mislead the appropriate standard of fill is not must have a reasonable basis in fact. purchaser if it is made and formed in required for internal containers. Claims that contain express or implied such a way that its actual capacity is (d) The external container must statements regarding the amount of substantially less than the capacity it include a net contents statement that support for the claim (such as ‘‘tests appears to have upon visual indicates how the aggregate package prove,’’ or ‘‘studies show’’) must have examination under ordinary conditions equals an authorized standard of fill (for the level of substantiation that is of purchase or use. example, ‘‘750 mL = 30 containers of 25 claimed. Any labeling claim that does (d) Fill. Containers must be filled with mL each’’). The internal container must not have a reasonable basis in fact, or a quantity of wine that corresponds to include a net contents statement in cannot be adequately substantiated one of the authorized container sizes accordance with § 4.68. upon the request of the appropriate TTB prescribed in § 4.203. (e) The external container must be officer, will be considered misleading shrink-wrapped, boxed, or sealed in § 4.203 Standards of fill (container sizes). within the meaning of § 4.122(b)(2). such a manner that the smaller (c) Evidence that claims are (a) Authorized standards of fill. containers cannot be easily removed. adequately substantiated. The Subject to the container requirements (f) Each of the smaller containers must appropriate TTB officer may request set forth in § 4.202, wine subject to this be labeled ‘‘NOT FOR INDIVIDUAL that bottlers and importers provide part must be placed in one of the SALE.’’ evidence that labeling claims are following authorized container sizes: adequately substantiated at any time (1) 3 liters. Subpart L—Recordkeeping and within a period of five years from the (2) 1.5 liters. Substantiation Requirements time the wine was removed from the (3) 1 liter. bottling premises or from customs (4) 750 milliliters. § 4.211 Recordkeeping requirements— custody, as applicable. (5) 500 milliliters. certificates. (6) 375 milliliters. (a) Certificates of label approval Subpart M—Penalties and (7) 187 milliliters. (COLAs). Upon request by the Compromise of Liability (8) 100 milliliters. appropriate TTB officer, a bottler or (9) 50 milliliters. importer must provide evidence that a § 4.221 Criminal penalties. (b) Sizes larger than 3 liters. Wine container of wine is covered by a COLA A violation of the labeling provisions may be bottled in containers of 4 liters or a certificate of exemption. This of 27 U.S.C. 205(e) is punishable as a or larger if the containers are filled and requirement may be satisfied by misdemeanor. See 27 U.S.C. 207 for the labeled in quantities of whole liters (4 providing original certificates, statutory provisions relating to criminal liters, 5 liters, 6 liters, etc.). This applies photocopies or electronic copies of penalties, consent decrees, and to containers that have a capacity of up COLAs, or records showing the TTB injunctions. to 17 liters. Identification number assigned to the (c) Tolerances. The tolerances in fill COLA. TTB may request such § 4.222 Conditions of basic permit. are the same as are allowed by § 4.62 in information for a period of five years A basic permit is conditioned upon respect to statement of net contents on from the date that the products covered compliance with the requirements of 27 labels. by the COLA were removed from the U.S.C. 205, including the labeling

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provisions of this part. A willful Section where Subpart C—Alteration of Labels, Relabeling, violation of the conditions of a basic contained Current OMB Control No. and Adding Information to Containers permit provides grounds for the 5.41 Alteration of labels. revocation or suspension of the permit, 4.126 ...... 1513–0087. 5.42 Authorized relabeling activities by as applicable, as set forth in part 1 of 4.127 ...... 1513–0087. distillers and importers. this chapter. 4.128 ...... 1513–0087. 5.43 Relabeling activities that require 4.129 ...... 1513–0087. separate written authorization from TTB. § 4.223 Compromise. 4.130 ...... 1513–0087. 5.44 Adding a label or other information to Pursuant to 27 U.S.C. 207, the 4.131 ...... 1513–0087. a container that identifies the wholesaler, retailer, or consumer. appropriate TTB officer is authorized, 4.133 ...... 1513–0087. with respect to any violation of 27 4.134 ...... 1513–0087. Subpart D—Label Standards 4.135 ...... 1513–0087. U.S.C. 205, to compromise the liability 4.136 ...... 1513–0087. 5.51 Firmly affixed requirements. arising with respect to such violation 4.201 ...... 1513–0064. 5.52 Legibility and other requirements for mandatory information on labels. upon payment of a sum not in excess of 4.211 ...... New control number. 5.53 Minimum type size of mandatory $500 for each offense, to be collected by 4.212 ...... New control number. the appropriate TTB officer and to be information. paid into the Treasury as miscellaneous 5.54 Visibility of mandatory information. ■ 2. Revise part 5 to read as follows: 5.55 Language requirements. receipts. 5.56 Additional information. Subpart N—Paperwork Reduction Act PART 5—LABELING OF DISTILLED Subpart E—Mandatory Label Information SPIRITS 5.61 What constitutes a label for purposes § 4.231 OMB control numbers assigned of mandatory information. under the Paperwork Reduction Act. Sec. 5.0 Scope. 5.62 Packaging (cartons, coverings, and (a) Purpose. This subpart displays the cases). control numbers assigned to information Subpart A—General Provisions 5.63 Mandatory label information. collection requirements in this part by 5.1 Definitions. 5.64 Brand name. the Office of Management and Budget 5.2 Territorial extent. 5.65 Alcohol content. 5.66 Name and address for domestically (OMB) under the Paperwork Reduction 5.3 General requirements and prohibitions bottled distilled spirits that were wholly Act of 1995, Public Law 104–13. under the FAA Act. made in the United States. (b) Chart. The following chart 5.4–5.6 [Reserved] 5.67 Name and address for domestically identifies each section in this part that 5.7 Other TTB labeling regulations that bottled distilled spirits that were bottled contains an information collection apply to distilled spirits. after importation. requirement and the OMB control 5.8 Distilled spirits for export. 5.68 Name and address for distilled spirits number that is assigned to that 5.9 Compliance with Federal and State that were imported in a container. information collection requirement. requirements. 5.69 Country of origin. 5.10 Other related regulations. 5.70 Net contents. Section where 5.11 Forms. 5.71 Neutral spirits and name of contained Current OMB Control No. 5.12 Delegations of the Administrator. commodity. 5.72 Coloring materials. Subpart B—Certificates of Label Approval 4.21 ...... 1513–0020. 5.73 Treatment of whisky or brandy with and Certificates of Exemption From Label 4.22 ...... 1513–0020, 1513–0111. wood. Approval 4.23 ...... 1513–0020, 1513–0111. 5.74 Statements of age, storage, and 4.24 ...... 1513–0020, 1513–0064. Requirements for Distilled Spirits Bottled in percentage. 4.25 ...... 1513–0020, 1513–0111. the United States Subpart F—Restricted Labeling Statements 4.27 ...... 1513–0020. 5.21 Requirement for certificates of label 4.28 ...... 1513–0122. 5.81 General. approval (COLAs) for distilled spirits 4.30 ...... 1513–0064, 1513–0119, bottled in the United States. Food Allergen Labeling New control number. 4.62 ...... 1513–0087. 5.22 Rules regarding certificates of label 5.82 Voluntary disclosure of major food 4.63 ...... 1513–0084, 1513–0087. approval (COLAs) for distilled spirits allergens. 4.81 ...... 1513–0087, 1513–0121. bottled in the United States. 5.83 Petitions for exemption from major 4.82 ...... 1513–0087, 1513–0121. 5.23 Application for exemption from label food allergen labeling. approval for distilled spirits bottled in 4.83 ...... 1513–0087. Production Claims 4.84 ...... 1513–0087. the United States. 5.84 Use of the term ‘‘organic.’’ 4.85 ...... 1513–0087. Requirements for Distilled Spirits Imported 5.85 Environmental, sustainability, and 4.86 ...... 1513–0087. in Containers similar statements. 4.87 ...... 1513–0087. 5.86 [Reserved] 4.88 ...... 1513–0087. 5.24 Certificates of label approval (COLAs) 4.89 ...... 1513–0087. for distilled spirits imported in Other Label Terms containers. 4.90 ...... 1513–0087. 5.87 ‘‘Barrel Proof’’ and similar terms. 5.25 Rules regarding certificates of label 4.91 ...... 1513–0087. 5.88 Bottled in bond. approval (COLAs) for distilled spirits 4.92 ...... 1513–0087. 5.89 Multiple distillation claims. 4.93 ...... 1513–0087. imported in containers. 5.90 Terms related to Scotland. 4.94 ...... 1513–0087. Administrative Rules 5.91 Use of the term ‘‘pure.’’ 4.95 ...... 1513–0087. 4.96 ...... 1513–0087. 5.27 Presenting certificates of label Subpart G—Prohibited Labeling Practices 4.97 ...... 1513–0087. approval (COLAs) to Government 5.101 General. 4.98 ...... 1513–0087. officials. 5.102 False or untrue statements. 4.121 ...... 1513–0087. 5.28 Formulas, samples, and 5.103 Obscene or indecent depictions. 4.122 ...... 1513–0087. documentation. 4.123 ...... 1513–0087. 5.29 Personalized labels. Subpart H—Labeling Practices That Are 4.124 ...... 1513–0087. 5.30 Certificates of age and origin for Prohibited If They Are Misleading 4.125 ...... 1513–0087. imported spirits. 5.121 General.

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5.122 Misleading statements or Subpart A—General Provisions authorized by TTB on the certificate or representations. otherwise. 5.123 Guarantees. § 5.15.1 Definitions. Container. Any can, bottle, box with 5.124 Disparaging statements. When used in this part and on forms an internal bladder, cask, keg, or other 5.125 Tests or analyses. prescribed under this part, the following closed receptacle, in any size or 5.126 Depictions of government symbols. terms have the meaning assigned to material, that is for use in the sale of 5.127 Depictions simulating government them in this section, unless the terms stamps or relating to supervision. distilled spirits at retail. See subpart K appear in a context that requires a 5.128 Claims related to wine or malt of this part for rules regarding beverages. different meaning. Any other term authorized standards of fill for 5.129 Health-related statements. defined in the Federal Alcohol containers. 5.130 Appearance of endorsement. Administration Act (FAA Act) and used Customs officer. An officer of U.S. in this part has the same meaning Customs and Border Protection (CBP) or Subpart I—Standards of Identity for assigned to it by the FAA Act. any agent or other person authorized by Distilled Spirits Administrator. The Administrator, law to perform the duties of such an 5.141 The standards of identity in general. Alcohol and Tobacco Tax and Trade officer. 5.142 Neutral spirits or alcohol. Bureau, Department of the Treasury. Distilled spirits. Ethyl alcohol, 5.143 Whisky. Age. The length of time during which, hydrated oxide of ethyl, spirits of wine, 5.144 Gin. after distillation and before bottling, the whisky, rum, brandy, gin, and other 5.145 Brandy. distilled spirits have been stored in oak 5.146 Blended applejack. distilled spirits, including all dilutions 5.147 Rum. barrels in such a manner that chemical and mixtures thereof, for nonindustrial 5.148 Agave spirits. changes take place as a result of direct use. The term ‘‘distilled spirits’’ does 5.149 Absinthe or absinth. contact with the wood. For bourbon not include mixtures containing wine, 5.150 Cordials and liqueurs. whisky, rye whisky, wheat whisky, malt bottled at 48 degrees of proof or less, if 5.151 Flavored spirits. whisky, or rye malt whisky, and straight the mixture contains more than 50 5.152 Imitations. whiskies other than straight corn percent wine on a proof gallon basis. 5.153 Diluted spirits. whisky, aging must occur in charred The term ‘‘distilled spirits’’ also does 5.154 Rules for geographical designations. new oak barrels. not include products containing less 5.155 Alteration of class and type. American proof. See Proof. than 0.5 percent alcohol by volume. 5.156 Distilled spirits specialty products. Appropriate TTB officer. An officer or Distilling season. The period from 5.157–5.165 [Reserved] employee of the Alcohol and Tobacco January 1 through June 30, which is the 5.166 Statement of composition. Tax and Trade Bureau (TTB) authorized spring distilling season, or the period Subpart J—Formulas to perform any function relating to the from July 1 through December 31, which 5.191 Application. administration or enforcement of this is the fall distilling season. 5.192 Formula requirements. part by the current version of TTB Order Distinctive or fanciful name. A 5.193 Operations requiring formulas. 1135.5, Delegation of the descriptive name or phrase chosen to 5.194 Adoption of predecessor’s formulas. Administrator’s Authorities, in 27 CFR identify a distilled spirits product on Subpart K—Standards of Fill and part 5, Labeling of Distilled Spirits. the label. It does not include a brand Authorized Container Sizes Bottler. Any distiller or processor of name, class or type designation, or distilled spirits who places distilled 5.201 General. statement of composition. spirits in containers. FAA Act. The Federal Alcohol 5.202 Standard liquor containers. Brand name. The name under which 5.203 Standards of fill (container sizes). Administration Act. 5.204 Aggregate packaging to meet standard a distilled spirit or line of distilled Gallon. A U.S. gallon of 231 cubic of fill requirements. spirits is sold. inches at 60 degrees Fahrenheit. 5.205 Distinctive liquor bottle approval. Certificate holder. The permittee or Grain. Includes cereal grains and the brewer whose name, address, and basic seeds of the pseudocereals amaranth, Subpart L—Recordkeeping and permit number, plant registry number, Substantiation Requirements buckwheat, and quinoa. or brewer’s notice number appears on In bulk. In barrels or other receptacles 5.211 Recordkeeping requirements— an approved TTB Form 5100.31. having a capacity in excess of 1 wine certificates. Certificate of exemption from label gallon (3.785 liters). 5.212 Substantiation requirements. approval. A certificate issued on TTB Interstate or foreign commerce. Subpart M—Penalties and Compromise of Form 5100.31, which authorizes the Commerce between any State and any Liability bottling of wine or distilled spirits, place outside of that State or commerce 5.221 Criminal penalties. under the condition that the product within the District of Columbia or 5.222 Conditions of basic permit. will under no circumstances be sold, commerce between points within the 5.223 Compromise. offered for sale, shipped, delivered for same State but through any place Subpart N—Paperwork Reduction Act shipment, or otherwise introduced by outside of that State. the applicant, directly or indirectly, into Liter or litre. A metric unit of capacity 5.231 OMB control numbers assigned under interstate or foreign commerce. equal to 1,000 cubic centimeters or the Paperwork Reduction Act. Certificate of label approval (COLA). 1,000 milliliters (mL) of distilled spirits Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. A certificate issued on TTB Form at 15.56 degrees Celsius (60 degrees 205 and 207. 5100.31 that authorizes the bottling of Fahrenheit), and equivalent to 33.814 wine, distilled spirits, and malt § 5.05.0 Scope. U.S. fluid ounces. beverages, or the removal of bottled Net contents. The amount, by volume, This part sets forth requirements that wine, distilled spirits, and malt of distilled spirits held in a container. apply to the labeling and packaging of beverages from customs custody for Oak barrel. A cylindrical oak drum of distilled spirits in containers, including introduction into commerce, as long as approximately 50 gallons used to age requirements for label approval and the product bears labels identical to the bulk spirits. rules regarding mandatory, regulated, labels appearing on the face of the Permittee. Any person holding a basic and prohibited labeling statements. certificate, or labels with changes permit under the FAA Act.

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Person. Any individual, corporation, (c) Labeling requirements for distilled percent alcohol by volume, must be partnership, association, joint-stock spirits. It is unlawful for any person labeled with a health warning company, business trust, limited engaged in business as a bottler, statement, in accordance with the liability company, or other form of wholesaler, or importer of distilled Alcoholic Beverage Labeling Act of 1988 business enterprise, including a spirits, directly or indirectly, or through (ABLA). The regulations implementing receiver, trustee, or liquidating agent an affiliate, to sell or ship, or deliver for the ABLA are contained in 27 CFR part and including an officer or employee of sale or shipment, or otherwise introduce 16. any agency of a State or political or receive in interstate or foreign (b) Internal Revenue Code subdivision of a State. commerce, or remove from customs requirements. The labeling and marking Produced at or distilled at. When custody, any distilled spirits in requirements for distilled spirits under used with reference to specific degrees containers unless the distilled spirits are the Internal Revenue Code are found in of proof of a distilled spirits product, bottled in containers, and the containers 27 CFR part 19, subpart T (for domestic the phrases ‘‘produced at’’ and are marked, branded and labeled, in products) and 27 CFR part 27, subpart ‘‘distilled at’’ mean the composite proof conformity with the regulations in this E (for imported products). of the distilled spirits after completion part. of distillation and before reduction in (d) Labeled in accordance with this § 5.85.8 Distilled spirits for export. proof, if any. part. In order to be labeled in Distilled spirits that are exported in Proof. The ethyl alcohol content of a accordance with the regulations in this bond without payment of tax directly liquid at 60 degrees Fahrenheit, stated part, a container of distilled spirits must from a distilled spirits plant or from as twice the percentage of ethyl alcohol be in compliance with the following customs custody are not subject to this by volume. requirements: part. For purposes of this section, direct Proof gallon. A gallon of liquid at 60 (1) It must bear one or more label(s) exportation in bond does not include degrees Fahrenheit that contains 50 meeting the standards for ‘‘labels’’ set exportation after distilled spirits have percent by volume of ethyl alcohol forth in subpart D of this part; been removed for consumption or sale having a specific gravity of 0.7939 at 60 (2) One or more of the labels on the in the United States, with appropriate degrees Fahrenheit, referred to water at container must include the mandatory tax determination or payment. 60 degrees Fahrenheit as unity, or the information set forth in subpart E of this § 5.95.9 Compliance with Federal and alcoholic equivalent thereof. part; Spirits. See Distilled spirits. State requirements. (3) Claims on any label, container, or State. One of the 50 States of the (a) General. Compliance with the packaging (as defined in § 5.82) must United States, the District of Columbia, requirements of this part relating to the comply with the rules for regulated or the Commonwealth of Puerto Rico. labeling and bottling of distilled spirits label statements, as applicable, set forth TTB. The Alcohol and Tobacco Tax does not relieve industry members from in subpart F of this part; and Trade Bureau of the Department of responsibility for complying with other (4) Statements or any other the Treasury. applicable Federal and State representations on any label, container, United States (U.S.). The 50 States, requirements, including but not limited or packaging (as defined in §§ 5.81(b) the District of Columbia, and the to those highlighted in paragraphs (b) and 5.121(b)) may not violate the Commonwealth of Puerto Rico. and (c) of this section. regulations in subparts G and H of this (b) Ingredient safety. While it remains § 5.25.2 Territorial extent. part regarding certain practices on the responsibility of the industry The provisions of this part apply to labeling of distilled spirits; member to ensure that any ingredient the 50 States, the District of Columbia, (5) The class and type designation on used in production of distilled spirits and the Commonwealth of Puerto Rico. the label(s), as well as any designation complies fully with all applicable U.S. appearing on containers or packaging § 5.35.3 General requirements and Food and Drug Administration (FDA) must comply with the standards of prohibitions under the FAA Act. regulations pertaining to the safety of identity set forth in subpart I of this (a) Certificates of label approval food ingredients and additives, the part; and (COLAs). Subject to the requirements appropriate TTB officer may at any time (6) The distilled spirits in the and exceptions set forth in the request documentation to establish such container may not be adulterated within regulations in subpart B of this part, any compliance. As set forth in § 5.3(d), the meaning of the Federal Food, Drug, bottler of distilled spirits, and any distilled spirits that are adulterated and Cosmetic Act. person who removes distilled spirits in under the Federal Food, Drug, and (e) Bottled in accordance with this containers from customs custody for Cosmetic Act are not labeled in part. In order to be bottled in sale or any other commercial purpose, is accordance with this part. accordance with the regulations in this required to first obtain from TTB a (c) Containers. While it remains the part, the distilled spirits must be bottled COLA covering the label(s) on each responsibility of the industry member to in authorized standards of fill in container. ensure that containers are made of containers that meet the requirements of (b) Alteration, mutilation, destruction, suitable materials that comply with all subpart K of this part. obliteration, or removal of labels. applicable FDA health and safety Subject to the requirements and § § 5.4§ 5.4–5.6 [Reserved] regulations for the packaging of exceptions set forth in the regulations in beverages for consumption, the subpart C of this part, it is unlawful to § 5.75.7 Other TTB labeling regulations appropriate TTB officer may at any time alter, mutilate, destroy, obliterate, or that apply to distilled spirits. request documentation to establish such remove labels on distilled spirits In addition to the regulations in this compliance. containers. This prohibition applies to part, distilled spirits must also comply any person, including retailers, holding with the following TTB labeling § 5.10 Other related regulations. distilled spirits for sale in interstate or regulations: (a) TTB regulations. Other TTB foreign commerce or any person holding (a) Health warning statement. regulations that relate to distilled spirits distilled spirits for sale after shipment Alcoholic beverages, including distilled are listed in paragraphs (a)(1) through in interstate or foreign commerce. spirits, that contain at least half of one (9) of this section:

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(1) 27 CFR part 1—Basic Permit (c) Obtaining paper forms. Forms (2) Relieve the certificate holder from Requirements Under the Federal required by this part are available for its responsibility to ensure that all Alcohol Administration Act, printing through the TTB website ingredients used in the production of Nonindustrial Use of Distilled Spirits (https://www.ttb.gov) or by mailing a the distilled spirit comply with and Wine, Bulk Sales and Bottling of request to the Alcohol and Tobacco Tax applicable requirements of the Food and Distilled Spirits; and Trade Bureau, National Revenue Drug Administration with regard to (2) 27 CFR part 13—Labeling Center, 550 Main Street, Room 8002, ingredient safety; or Proceedings; Cincinnati, OH 45202. (3) Relieve the certificate holder from (3) 27 CFR part 14—Advertising of liability for violations of the FAA Act, Alcohol Beverage Products; § 5.12 Delegations of the Administrator. the Alcohol Beverage Labeling Act of (4) 27 CFR part 16—Alcoholic Most of the regulatory authorities of 1988, the Internal Revenue Code, or Beverage Health Warning Statement; the Administrator contained in this part related regulations and rulings. (5) 27 CFR part 19—Distilled Spirits are delegated to ‘‘appropriate TTB (i) The issuance of a COLA does not Plants; officers.’’ To determine which officers mean that TTB has verified the accuracy (6) 27 CFR part 26—Liquors and have been delegated specific authorities, of any representations or claims made Articles From Puerto Rico and the see the current version of TTB Order on the label with respect to the product Virgin Islands; 1135.5, Delegation of the in the container. It is the responsibility (7) 27 CFR part 27—Importation of Administrator’s Authorities in 27 CFR of the applicant to ensure that all Distilled Spirits, Wines, and Beer; part 5, Labeling of Distilled Spirits. information on the application is true (8) 27 CFR part 28—Exportation of Copies of this order can be obtained by and correct, and that all labeling Alcohol; and accessing the TTB website (https:// representations and claims are truthful, (9) 27 CFR part 71—Rules of Practice www.ttb.gov) or by mailing a request to accurate, and not misleading with in Permit Proceedings. the Alcohol and Tobacco Tax and Trade respect to the product in the container. (b) Other Federal Regulations. The Bureau, National Revenue Center, 550 (ii) A distilled spirit may be regulations listed in paragraphs (b)(1) Main Street, Room 8002, Cincinnati, OH mislabeled even when the label is through (9) of this section issued by 45202. covered by a COLA. For example, if the other Federal agencies also may apply: label on the container contains (1) 7 CFR part 205—National Organic Subpart B—Certificates of Label representations that are false or Program; Approval and Certificates of misleading when applied to the product (2) 19 CFR part 11—Packing and Exemption from Label Approval. in the container, the distilled spirit is Stamping; Marking; Requirements for Distilled Spirits not labeled in accordance with the (3) 19 CFR part 102—Rules of Origin; Bottled in the United States regulations in this part, even if it is (4) 19 CFR part 134—Country of covered by a COLA. Origin Marking; § 5.21 Requirement for certificates of label (c) When to obtain a COLA. The (5) 21 CFR part 1—General approval (COLAs) for distilled spirits COLA must be obtained prior to Enforcement Regulations, Subpart H, bottled in the United States. bottling. No bottler may bottle distilled Registration of Food Facilities, and (a) This section applies to distilled spirits, or remove distilled spirits from Subpart I, Prior Notice of Imported spirits bottled in the United States, the premises where bottled, unless a Food; outside of customs custody. COLA has been obtained. (6) 21 CFR parts 70–82, which pertain (b) No person may bottle distilled (d) Application for a COLA. The to food and color additives; spirits without first applying for and bottler may apply for a COLA by (7) 21 CFR part 101—Food Labeling; obtaining a COLA issued by the submitting an application to TTB on (8) 21 CFR part 110—Current Good appropriate TTB officer. This Form 5100.31, in accordance with the Manufacturing Practice in requirement applies to distilled spirits instructions on the form. The bottler Manufacturing, Packing, or Holding produced and bottled in the United may apply for a COLA either Human Food; and States and to distilled spirits imported electronically by accessing TTB’s online (9) 21 CFR parts 170–189, which in bulk, regardless of where produced, system, COLAs Online, at https:// pertain to food additives and secondary and bottled in the United States. www.ttb.gov, or by submitting the paper direct food additives. Bottlers may obtain an exemption from form. For procedures regarding the § 5.11 Forms. this requirement only if they satisfy the issuance of COLAs, see part 13 of this conditions set forth in § 5.23. chapter. (a) General. TTB prescribes and makes available all forms required by § 5.22 Rules regarding certificates of label § 5.23 Application for exemption from this part. Any person completing a form approval (COLAs) for distilled spirits label approval for distilled spirits bottled in must provide all of the information bottled in the United States. the United States. required by each form as indicated by (a) What a COLA authorizes. An (a) Exemption. Any bottler of distilled the headings on the form and the approved TTB Form 5100.31 authorizes spirits may apply to be exempt from the instructions for the form. Each form the bottling of distilled spirits covered requirements of this part, by showing to must be filed in accordance with this by the COLA, as long as the container the satisfaction of the appropriate TTB part and the instructions for the form. bears labels identical to the labels officer that the distilled spirits to be (b) Electronically filing forms. The appearing on the face of the COLA, or bottled are not to be sold, offered for forms required by this part can be filed labels with changes authorized by TTB sale, or shipped or delivered for electronically by using TTB’s online on the COLA or otherwise. The list of shipment, or otherwise introduced, in filing systems: COLAs Online and allowable changes can be found on the interstate or foreign commerce. Formulas Online. Anyone who intends TTB website at https://www.ttb.gov. (b) Application required. The bottler to use one of these online filing systems (b) What a COLA does not do. Among must file an application on TTB Form must first register to use the system by other things, the issuance of a COLA 5100.31 for exemption from label accessing the TTB website at https:// does not: approval before bottling the distilled www.ttb.gov. (1) Confer trademark protection; spirits. The bottler may apply for a

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certificate of exemption from label eligible for a certificate of exemption of distilled spirits must obtain approval approval either electronically, by from label approval. See 27 CFR 27.49, of the labels by submitting an accessing TTB’s online system, COLAs 27.74, and 27.75 for labeling exemptions application to TTB on TTB Form Online, at https://www.ttb.gov, or by applicable to certain imported samples 5100.31. A person may apply for a using the paper form. For procedures of distilled spirits. COLA either electronically, by accessing regarding the issuance of certificates of (e) Relabeling in customs custody. TTB’s online system, COLAs Online, at exemption from label approval, see part Containers of distilled spirits in customs https://www.ttb.gov, or by submitting 13 of this chapter. custody that are required to be covered the paper form. For procedures (c) Labeling of distilled spirits covered by a COLA but are not labeled in regarding the issuance of COLAs, see by certificate of exemption. The conformity with a COLA must be part 13 of this chapter. application for a certificate of relabeled, under the supervision and Administrative Rules exemption from label approval requires direction of customs officers, prior to that the applicant identify the State in their removal from customs custody for § 5.27 Presenting certificates of label which the product will be sold. As a consumption. approval (COLAs) to Government officials. condition of receiving exemption from label approval, the label covered by an § 5.25 Rules regarding certificates of label A certificate holder must present the approved certificate of exemption must approval (COLAs) for distilled spirits original or a paper or electronic copy of include the statement ‘‘For sale in imported in containers. the appropriate COLA upon the request [name of State] only.’’ See §§ 19.517 and (a) What COLA authorizes. An of any duly authorized representative of 19.518 of this chapter for additional approved TTB Form 5100.31 authorizes the United States Government. labeling rules that apply to distilled the use of the labels covered by the § 5.28 Formulas, samples, and spirits covered by a certificate of COLA on containers of distilled spirits, documentation. exemption. as long as the container bears labels identical to the labels appearing on the (a) In addition to any formula Requirements for Distilled Spirits face of the COLA, or labels with changes specifically required under subpart J, Imported in Containers authorized by the form or otherwise TTB may require formulas under certain authorized by TTB. circumstances in connection with the § 5.24 Certificates of label approval label approval process. Prior to or in (COLAs) for distilled spirits imported in (b) What a COLA does not do. Among containers. other things, the issuance of a COLA conjunction with the review of an application for a certificate of label (a) Application requirement. Any does not: approval (COLA) on TTB Form 5100.31, person removing distilled spirits in (1) Confer trademark protection; the appropriate TTB officer may require containers from customs custody for (2) Relieve the certificate holder from a bottler or importer to submit a consumption must first apply for and its responsibility to ensure that all formula, the results of laboratory testing obtain a COLA covering the distilled ingredients used in the production of of the distilled spirits, or a sample of spirits from the appropriate TTB officer. the distilled spirit comply with (b) Release of distilled spirits from applicable requirements of the Food and any distilled spirits or ingredients used customs custody. Distilled spirits, Drug Administration with regard to in producing a distilled spirit. The imported in containers, are not eligible ingredient safety; or appropriate TTB officer also may for release from customs custody for (3) Relieve the certificate holder from request such information or samples consumption, and no person may liability for violations of the FAA Act, after the issuance of such a COLA, or in remove such distilled spirits from the Alcoholic Beverage Labeling Act, connection with any distilled spirit that customs custody for consumption, the Internal Revenue Code, or related is required to be covered by a COLA. A unless the person removing the distilled regulations and rulings. formula may be filed electronically by spirits has obtained and is in possession (i) The issuance of a COLA does not using Formulas Online, or it may be of a COLA covering the distilled spirits. mean that TTB has verified the accuracy submitted on paper on Form 5100.51. (c) Filing requirements. If filing of any representations or claims made See § 5.11 for more information on electronically, the importer must file on the label with respect to the product forms and Formulas Online. with U.S. Customs and Border in the container. It is the responsibility (b) Upon request of the appropriate Protection (CBP), at the time of filing the of the applicant to ensure that all TTB officer, a bottler or importer must customs entry, the TTB-assigned information on the application is true submit a full and accurate statement of identification number of the valid COLA and correct and that all labeling the contents of any container to which that corresponds to the label on the representations and claims are truthful, labels are to be or have been affixed, as brand or lot of distilled spirits to be accurate, and not misleading with well as any other documentation on any imported. If the importer is not filing respect to the product in the container. issue pertaining to whether the distilled electronically, the importer must (ii) Distilled spirits may be mislabeled spirits are labeled in accordance with provide a copy of the COLA to CBP at even when the label is covered by a this part. the time of entry. In addition, the COLA. For example, if the label on the importer must provide a copy of the container contains representations that § 5.29 Personalized labels. applicable COLA, and proof of the are false or misleading when applied to (a) General. Applicants for label certificate holder’s authorization if the product in the container the approval may obtain permission from applicable, upon request by the distilled spirits are not labeled in TTB to make certain changes in order to appropriate TTB officer or a customs accordance with the regulations in this personalize labels without having to officer. part, even if it is covered by a COLA. resubmit labels for TTB approval. (d) Scope of this section. The COLA (c) When to obtain a COLA. The Personalized labels may contain a requirement imposed by this section COLA must be obtained prior to the personal message, picture, or other applies only to distilled spirits that are removal of distilled spirits in containers artwork that is specific to the consumer removed for sale or any other from customs custody for consumption. who is purchasing the product. For commercial purpose. Distilled spirits (d) Application for a COLA. The example, a distiller may offer individual that are imported in containers are not person responsible for the importation or corporate customers labels that

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commemorate an event such as a and before bottling, the distilled spirits Tequila possesses a certificate issued by wedding or grand opening. have been stored in oak containers. an official duly authorized by the (b) Application. Any person who (b) Brandy, including Cognac. Brandy Mexican Government stating that the intends to offer personalized labels must (other than fruit brandies of a type not product is entitled to be designated as submit a template for the personalized customarily stored in oak containers) or Tequila under the applicable laws and label with the application for label Cognac, imported in containers, is not regulations of the Mexican Government. approval, and must note on the eligible for release from customs (2) If the label of any Tequila application a description of the specific custody for consumption, and no person imported in containers contains any personalized information that may may remove such brandy or Cognac statement of age, the Tequila is not change. from customs custody for consumption, eligible for release from customs (c) Approval of personalized label. If unless the person so removing the custody for consumption, and no person the application complies with the brandy or Cognac possesses a certificate may remove such Tequila from customs regulations, TTB will issue a certificate issued by an official duly authorized by custody for consumption, unless the of label approval (COLA) with a the appropriate foreign country person removing the Tequila possesses qualification allowing the certifying that the age of the youngest a certificate issued by an official duly personalization of labels. The brandy or Cognac in the container is not authorized by the Mexican Government qualification will allow the certificate less than two years, or if age is stated as to the age of the youngest Tequila in holder to add or change items on the on the label that none of the distilled the container. The age certified shall be personalized label such as salutations, spirits are of an age less than that stated. the period during which the Tequila has names, graphics, artwork, The age certified shall be the period been stored in oak containers after congratulatory dates and names, or during which, after distillation and distillation and before bottling. event dates without applying for a new before bottling, the distilled spirits have (e) Other whiskies. Whisky, as defined COLA. All of these items on been stored in oak containers. If the in § 5.143(c)(2) through (7) and (10) personalized labels must comply with label of any fruit brandy, not stored in through (14), that is imported in the regulations of this part. oak containers, bears any statement of containers may be released from (d) Changes not allowed to storage in another type of container, the customs custody for econsumption only personalized labels. Approval of an brandy is not eligible for release from if the invoice is accompanied by a application to personalize labels does customs custody for consumption, and certificate issued by a duly authorized not authorize the addition of any no person may remove such brandy official of the appropriate foreign information that discusses either the from customs custody for consumption, government certifying: alcohol beverage or characteristics of the unless the person so removing the (1) In the case of whisky (regardless alcohol beverage or that is inconsistent brandy possesses a certificate issued by of whether it is mixed or blended) that with or in violation of the provisions of an official duly authorized by the contains no neutral spirits: this part or any other applicable appropriate foreign government (i) The type of the whisky as defined provision of law or regulations. certifying to such storage. Cognac, in § 5.143; imported in containers, is not eligible (ii) The American proof at which the § 5.30 Certificates of age and origin for for release from customs custody for whisky was distilled; imported spirits. consumption, and no person may (iii) That no neutral spirits (or other (a) Scotch, Irish, and Canadian remove such Cognac from customs whisky in the case of straight whisky) whiskies. (1) Scotch, Irish, and Canadian custody for consumption, unless the have been added or otherwise included whiskies, imported in containers, are person so removing the Cognac in the whisky not eligible for release from customs possesses a certificate issued by an (iv) The age of the whisky; and custody for consumption, and no person official duly authorized by the French (v) The type of oak barrel in which the may remove such whiskies from Government, certifying that the product whisky was aged and whether the barrel customs custody for consumption, is grape brandy distilled in the Cognac was new or reused, charred or unless that person has obtained and is region of France and entitled to be uncharred; and in possession of an invoice designated as ‘‘Cognac’’ by the laws and (2) In the case of whisky containing accompanied by a certificate of origin regulations of the French Government. neutral spirits: issued by an official duly authorized by (c) Rum. Rum imported in containers (i) The type of the whisky as defined the appropriate foreign government, that contain any statement of age is not in § 5.143; certifying: eligible to be released from customs (ii) The percentage of straight whisky (i) That the particular distilled spirits custody for consumption, and no person used in the blend, if any; are Scotch, Irish, or Canadian whisky, as may remove such rum from customs (iii) The American proof at which any the case may be; custody for consumption, unless the straight whisky in the blend was (ii) That the distilled spirits have been person so removing the rum possesses a distilled; manufactured in compliance with the certificate issued by an official duly (iv) The percentage of whisky other laws of the respective foreign authorized by the appropriate foreign than straight whisky in the blend, if any; governments regulating the manufacture country, certifying to the age of the (v) The percentage of neutral spirits in of whisky for home consumption; and youngest rum in the container. The age the blend and the name of the (iii) That the product conforms to the certified shall be the period during commodity from which the neutral requirements of the Immature Spirits which, after distillation and before spirits were distilled; Act of such foreign governments for bottling, the distilled spirits have been (vi) The age of any straight whisky spirits intended for home consumption. stored in oak containers. and the age of any other whisky in the (2) In addition, an official duly (d) Tequila. (1) Tequila imported in blend; and authorized by the appropriate foreign containers is not eligible for release (vii) The type of oak barrel in which government must certify to the age of from customs custody for consumption, the age of each whisky in the blend was the youngest distilled spirits in the and no person may remove such Tequila attained and whether the barrel was container. The age certified shall be the from customs custody for consumption, new or reused and charred or period during which, after distillation unless the person removing such uncharred.

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(f) Miscellaneous. Distilled spirits and must provide them upon request of containers in customs custody may be (other than Scotch, Irish, and Canadian the appropriate TTB officer. relabeled without obtaining separate whiskies, and Cognac) imported in permission from TTB for the relabeling containers are not eligible for release Subpart C—Alteration of Labels, activity. Such containers must bear from customs custody for consumption, Relabeling, and Adding Information to labels covered by a COLA upon their and no person shall remove such spirits Containers removal from customs custody for from customs custody for consumption, § 5.41 Alteration of labels. consumption. See § 5.24(b). unless that person has obtained and is in possession of an invoice (a) Prohibition. It is unlawful for any (d) Relabeling after removal from accompanied by a certificate of origin person to alter, mutilate, destroy, customs custody. Imported distilled issued by an official duly authorized by obliterate or remove any mark, brand, or spirits in containers may be relabeled by the appropriate foreign government, if label on distilled spirits in containers the importer thereof after removal from the issuance of such certificates with held for sale in interstate or foreign customs custody without obtaining respect to such distilled spirits is commerce, or held for sale after separate permission from TTB for the required by the foreign government shipment in interstate or foreign relabeling activity, as long as the labels concerned, certifying as to the identity commerce, except as authorized by are covered by a COLA. of the distilled spirits and that the § 5.42, § 5.43, or § 5.44, or as otherwise § 5.43 Relabeling activities that require distilled spirits have been manufactured authorized by Federal law. separate written authorization from TTB. in compliance with the laws of the (b) Authorized relabeling. For respective foreign government purposes of the relabeling activities Any persons holding distilled spirits authorized by this subpart, the term regulating the manufacture of such for sale who need to relabel the ‘‘relabel’’ includes the alteration, distilled spirits for home consumption. containers but are not eligible to obtain mutilation, destruction, obliteration, or (g) Retention of certificates—distilled a COLA to cover the labels that they removal of any existing mark, brand, or spirits imported in containers. The label on the container, as well as the wish to affix to the containers may importer of distilled spirits imported in addition of a new label (such as a sticker apply for written permission for the containers must retain for five years that adds information about the product relabeling of distilled spirits containers. following the removal of the bottled or information engraved on the The appropriate TTB officer may permit distilled spirits from customs custody container) to the container, and the relabeling of distilled spirits in copies of the certificates (and replacement of a label with a new label containers if the facts show that the accompanying invoices, if applicable) bearing identical information. relabeling is for the purpose of required by paragraphs (a) through (f) of (c) Obligation to comply with other compliance with the requirements of this section, and must provide them requirements. Authorization to relabel this part or State law. The written upon request of the appropriate TTB under this subpart in no way authorizes application must include copies of the officer or a customs officer. the placement of labels on containers original and proposed new labels; the (h) Distilled spirits imported in bulk that do not accurately reflect the brand, circumstances of the request, including for bottling in the United States. bottler, identity, or other characteristics the reason for relabeling; the number of Distilled spirits that would be required of the product; nor does it relieve the containers to be relabeled; the location under paragraphs (a) through (f) of this person conducting the relabeling where the relabeling will take place; and section to be covered by a certificate of operations from any obligation to the name and address of the person who age and/or a certificate of origin and that comply the regulations in this part and will be conducting the relabeling are imported in bulk for bottling in the with State or local law, or to obtain operations. United States may be removed from the permission from the owner of the brand premises where bottled only if the where otherwise required. § 5.44 Adding a label or other information bottler possesses a certificate of age and/ to a container that identifies the wholesaler, or a certificate of origin, issued by the § 5.42 Authorized relabeling activities by retailer, or consumer. appropriate entity as set forth in distillers and importers. Any label or other information that paragraphs (a) through (f) of this section, (a) Relabeling at distilled spirits plant identifies the wholesaler, retailer, or applicable to the spirits that provides premises. Proprietors of distilled spirits the same information as a certificate plant premises may relabel domestically consumer of the distilled spirits may be required under paragraphs (a) through bottled distilled spirits prior to removal added to containers (by the addition of (f) of this section, would provide for like from, and after return to bond at, the stickers, engraving, stenciling, etc.) spirits imported in bottles. The bottler distilled spirits plant premises, with without prior approval from TTB and of distilled spirits imported in bulk labels covered by a certificate of label without being covered by a certificate of must retain for five years following the approval (COLA), without obtaining label approval or certificate of removal of such spirits from the separate permission from TTB for the exemption from label approval. Such domestic plant where bottled copies of relabeling activity. information may be added before or the certificates required by paragraphs (b) Relabeling after removal from after the containers have been removed (a) through (f), and must provide them distilled spirits plant premises. from distilled spirits plant premises or upon request of the appropriate TTB Proprietors of distilled spirits plant released from customs custody. The officer. premises may relabel domestically information added: (i) Retention of distilled spirits bottled distilled spirits after removal (a) May not violate the provisions of certificates—distilled spirits in bulk. from distilled spirits plant premises subpart F, G, or H of this part; The bottler of distilled spirits imported with labels covered by a COLA, without in bulk must retain, for five years obtaining separate permission from TTB (b) May not contain any reference to following the removal of such distilled for the relabeling activity. the characteristics of the product; and spirits from the premises where bottled, (c) Relabeling in customs custody. (c) May not be added to the container copies of the certificates required by Under the supervision of customs in such a way that it obscures any other paragraphs (a) through (f) of this section, officers, imported distilled spirits in labels on the container.

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Subpart D—Label Standards (a) Containers of more than 200 (1) Material affixed to the container, milliliters. All mandatory information whether made of paper, plastic film, or § 5.51 Firmly affixed requirements. must be in script, type, or printing that other matter; Any label that is not an integral part is at least two millimeters in height. (2) For purposes of the net content of the container must be affixed to the (b) Containers of 200 milliliters or statement only, information blown, container in such a way that it cannot less. All mandatory information must be embossed, or molded into the container be removed without thorough in script, type, or printing that is at least as part of the process of manufacturing application of water or other solvents. one millimeter in height. the container; (3) Information etched, engraved, § 5.52 Legibility and other requirements § 5.54 Visibility of mandatory information. sandblasted, or otherwise carved into for mandatory information on labels. the surface of the container; and (a) Readily legible. Mandatory Mandatory information on a label must be readily visible and may not be (4) Information branded, stenciled, information on labels must be readily painted, printed, or otherwise directly legible to potential consumers under covered or obscured in whole or in part. See § 5.62 for rules regarding packaging applied on to the surface of the ordinary conditions. container. (b) Separate and apart. Mandatory of containers (including cartons, coverings, and cases). See part 14 of this (b) Information appearing elsewhere information on labels, except brand on the container. Information appearing names, must be separate and apart from chapter for regulations pertaining to advertising materials. on the following parts of the container any additional information. This does is subject to all of the restrictions and not preclude the addition of brief § 5.55 Language requirements. prohibitions set forth in subparts F, G optional phrases of additional (a) General. Mandatory information and H of this part, but will not satisfy information as part of the class or type any requirements for mandatory designation (such as, ‘‘premium vodka’’ must appear in the English language, with the exception of the brand name information that must appear on labels or ‘‘delicious Tequila’’), the name and in this part: address statement (such as, ‘‘Proudly and except as provided in paragraphs (c) and (d) of this section. (1) Material affixed to, or information distilled and bottled by ABC Distilling appearing on, the bottom surface of the (b) Foreign languages. Additional Company, Atlanta, GA, for over 30 container; statements in a foreign language, years’’) or other information required by (2) Caps, corks or other closures including translations of mandatory § 5.63(a) and (b), as long as the unless authorized to bear mandatory information that appears elsewhere in additional information does not detract information by the appropriate TTB English on the label, are allowed on from the prominence of the mandatory officer; and information. The statements required by labels and containers as long as they do (3) Foil or heat shrink bottle capsules. § 5.63(c) may not include additional not in any way conflict with, or (c) Materials not firmly affixed to the information. contradict, the requirements of this part. container. Any materials that (c) Contrasting background. (c) Distilled spirits for consumption in accompany the container to the Mandatory information must appear in the Commonwealth of Puerto Rico. consumer but are not firmly affixed to a color that contrasts with the Mandatory information may be stated the container, including booklets, background on which it appears, except solely in the Spanish language on labels leaflets, and hang tags, are not ‘‘labels’’ that if the net contents are blown into of distilled spirits bottled for for purposes of this part. Such materials a glass container, they need not be consumption within the Commonwealth are instead subject to the advertising contrasting. The color of the container of Puerto Rico. regulations in part 14 of this chapter. and of the spirits must be taken into (d) Exception for country of origin account if the label is transparent or if statements. The country of origin § 5.62 Packaging (cartons, coverings, and mandatory label information is etched, statement for distilled spirits may cases). engraved, sandblasted, or otherwise appear in a language other than English (a) General. The term ‘‘packaging’’ carved into the surface of the container when allowed by U.S. Customs and includes any covering, carton, case, or is branded, stenciled, painted, Border Protection regulations. carrier, or other packaging of distilled printed, or otherwise directly applied spirits containers used for sale at retail, on to the surface of the container. § 5.56 Additional information. but does not include shipping cartons or Examples of acceptable contrasts are: Information (other than mandatory cases that are not intended to (1) Black lettering appearing on a information) that is truthful, accurate, accompany the container to the white or cream background; or and specific, and that does not violate consumer. (2) White or cream lettering appearing subpart F, G, or H of this part, may (b) Prohibition. Any packaging of on a black background. appear on labels. Such additional distilled spirits containers may not (d) Capitalization. Except for the information may not conflict with, contain any statement, design, device, aspartame statement when required by modify, qualify or restrict mandatory or graphic, pictorial, or emblematic § 5.63(c)(4), which must appear in all information in any manner. representation that violates the capital letters, mandatory information provisions of subpart F, G, or H of this prescribed by this part may appear in all Subpart E—Mandatory Label part. capital letters, in all lower case letters, Information (c) Requirements for closed packaging. If containers are enclosed in or in mixed-case using both capital and § 5.61 What constitutes a label for lower-case letters. closed packaging, including sealed purposes of mandatory information. opaque coverings, cartons, cases, § 5.53 Minimum type size of mandatory (a) Label. Certain information, as carriers, or other packaging used for sale information. outlined in § 5 63, must appear on a at retail, such packaging must bear all All capital and lowercase letters in label. When used in this part for mandatory label information required statements of mandatory information on purposes of determining where on the label under § 5.63. labels must meet the following type size mandatory information must appear, the (1) Packaging is considered closed if requirements. term ‘‘label’’ includes: the consumer must open, rip, untie,

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unzip, or otherwise manipulate the label or labels (as defined in § 5.61) (8) Aspartame. If the distilled spirit package to remove the container in anywhere on the container bearing the contains aspartame, the label must order to view any of the mandatory following information: include the following statement, in information. (1) Name and address of the bottler or capital letters, separate and apart from (2) Packaging is not considered closed distiller, in accordance with § 5.66, or all other information: if a consumer could view all of the the importer, in accordance with § 5.67 ‘‘PHENYLKETONURICS: CONTAINS mandatory information on the container or § 5.68, as applicable; and PHENYLALANINE.’’ by merely lifting the container up, or if (2) Net contents (which may be (d) Distinctive liquor bottles. See the packaging is transparent or designed blown, embossed, or molded into the § 5.205(b)(2) for exemption from in a way that all of the mandatory container as part of the process of placement requirements for certain information can be easily read by the manufacturing the container), in mandatory information for distinctive consumer without having to open, rip, accordance with § 5.68. liquor bottles. untie, unzip, or otherwise manipulate (c) Disclosure of certain ingredients, § 5.64 Brand name. the package. processes and other information. The (d) Packaging that is not closed. The following ingredients, processes, and (a) Requirement. The distilled spirits following requirements apply to other information must be disclosed on label must include a brand name. If the packaging that is not closed. a label, without the inclusion of any distilled spirits are not sold under a (1) The packaging may display any additional information as part of the brand name, then the name of the information that is not in conflict with statement, as follows: bottler, distiller or importer, as the label on the container that is inside (1) Neutral spirits. The percentage of applicable, appearing in the name and the packaging. neutral spirits and the name of the address statement is treated as the brand (2) If the packaging displays a brand commodity from which the neutral name. name, it must display the brand name spirits were distilled, or in the case of (b) Misleading brand names. Labels in its entirety. For example, if a brand continuously distilled neutral spirits or may not include any misleading brand name is required to be modified with gin, the name of the commodity only, in names. A brand name is misleading if it additional information on the container, accordance with § 5.70; creates (by itself or in association with the packaging must also display the (2) Coloring or treatment with wood. other printed or graphic matter) any same modifying language. Coloring or treatment with wood, in erroneous impression or inference as to (3) If the packaging displays a class or accordance with §§ 5.71 and 5.72; the age, origin, identity, or other characteristics of the distilled spirits. A type designation, it must be identical to (3) Age. A statement of age or age and brand name that would otherwise be the class or type designation appearing percentage of type, when required or misleading may be qualified with the on the container. For example, if the used, in accordance with § 5.73; word ‘‘brand’’ or with some other packaging displays a class or type (4) State of distillation. State of qualification, if the appropriate TTB designation for a brandy for which a distillation of any type of whisky officer determines that the qualification truthful and adequate statement of defined in § 5.143(c)(2) through (c)(7), dispels any misleading impression that composition is required on the which is distilled in the United States, might otherwise be created. container, the packaging must also in accordance with § 5.66(f); include the statement of composition as (5) FD&C Yellow No. 5. If a distilled § 5.65 Alcohol content. well. spirit contains the coloring material (e) Labeling of containers within the (a) General. The alcohol content for FD&C Yellow No. 5, the label must packaging. The container within the distilled spirits must be stated on the include a statement to that effect, such packaging is subject to all labeling label as a percentage of alcohol by as ‘‘FD&C Yellow No. 5’’ or ‘‘Contains requirements of this part, including volume. Products that contain a FD&C Yellow No. 5’’; mandatory labeling information significant amount of material, such as (6) Cochineal extract or carmine. If a requirements, regardless of whether the solid fruit, that may absorb spirits after distilled spirit contains the color packaging bears such information. bottling must state the alcohol content additive cochineal extract or the color at the time of bottling as follows: § 5.63 Mandatory label information. additive carmine, the label must include ‘‘Bottled at ll percent alcohol by (a) Mandatory information required to a statement to that effect, using the volume.’’ appear within the same field of vision. respective common or usual name (such (b) How the alcohol content must be Distilled spirits containers must bear a as ‘‘contains cochineal extract’’ or expressed. The following rules apply to label or labels (as defined in § 5.61) ‘‘contains carmine’’). This requirement statements of alcohol content. containing the following information applies to labels when either of the (1) A statement of alcohol content within the same field of vision (which coloring materials was used in a must be expressed as a percentage of means a single side of a container (for distilled spirit that is removed from alcohol by volume and not by a range, a cylindrical container, a side is 40 bottling premises or from customs or by maximums or minimums. percent of the circumference) where all custody on or after April 16, 2013; (i) In addition, the alcohol content in of the pieces of information can be (7) Sulfites. If a distilled spirit degrees of proof may be stated on a label viewed simultaneously without the contains 10 or more parts per million of as long as it appears immediately need to turn the container): sulfur dioxide or other sulfiting agent adjacent to the mandatory statement of (1) Brand name, in accordance with measured as total sulfur dioxide, the alcohol content as a percentage of § 5.64; label must include a statement to that alcohol by volume. Additional (2) Class, type, or other designation, effect. Examples of acceptable statements of proof may appear on the in accordance with subpart I of this part; statements are ‘‘Contains sulfites’’ or label without being immediately and ‘‘Contains (a) sulfiting agent(s)’’ or a adjacent to the mandatory alcohol by (3) Alcohol content, in accordance statement identifying the specific volume statement. with § 5.65. sulfiting agent. The alternative terms (ii) Other truthful, accurate, and (b) Other mandatory information. ‘‘sulphites’’ or ‘‘sulphiting’’ may be specific factual representations of Distilled spirits containers must bear a used; and alcohol content, such as alcohol by

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weight, may be made, as long as they (2) If the name of the processor the container by printing, coding, or appear together with, and as part of, the appears on the label, it must be other markings. statement of alcohol content as a preceded by a phrase such as ‘‘blended (4) Distilled spirits bottled for another percentage of alcohol by volume. by,’’ ‘‘made by,’’ ‘‘prepared by,’’ person. (i) If distilled spirits are bottled (2)(i) The alcohol content statement ‘‘produced by,’’ or ‘‘manufactured by,’’ for another person, other than the actual must be expressed in one of the as appropriate, followed by the name distiller thereof, the label may state, in following formats: and address of the processor. When addition to (but not in place of) the (A) ‘‘Alcohol ll percent by applied to distilled spirits, the term name and address of the bottler, the volume’’; ‘‘produced by’’ indicates a processing name and address of such other person, (B) ‘‘ll percent alcohol by volume’’; operation (formerly known as immediately preceded by the words or rectification) that involves a change in ‘‘bottled for’’ or another similar ll (C) ‘‘Alcohol by volume the class or type of the product through appropriate phrase. Such statements percent.’’ the addition of flavors or some other must clearly indicate the relationship (ii) Any of the words or symbols may processing activity. between the two persons (for example, be enclosed in parentheses and (3) If the name of the distiller appears contract bottling). authorized abbreviations may be used on the label, it must be preceded by a (ii) If the same brand of distilled with or without a period. The alcohol phrase such as ‘‘distilled by,’’ followed spirits is bottled by two distillers that content statement does not have to are not under the same ownership, the appear with quotation marks. by the name and address of the distiller. If the distilled spirits were bottled for label for each distiller may set forth both (3) The statements listed in paragraph locations where bottling takes place, as (b)(2)(i) of this section must appear as the distiller thereof, the name and address of the distiller may be preceded long as the label uses the actual location shown, except that the following (and not the principal place of business) abbreviations may be used: Alcohol may by a phrase such as ‘‘distilled by and bottled for,’’ or ‘‘bottled for.’’ and as long as the nature of the be abbreviated as ‘‘alc’’; percent may be arrangement is clearly set forth. (c) Listing of more than one function. represented by the percent symbol ‘‘%’’; (5) No additional places or addresses If different functions are performed by alcohol and volume may be separated may be stated for the same person by a slash ‘‘/’’ in lieu of the word ‘‘by’’; more than one person, statements on the unless: and volume may be abbreviated as label may not create the misleading (i) That person is actively engaged in ‘‘vol’’. impression that the different functions the conduct of an additional bona fide (4) Examples. The following are were performed by the same person. and actual alcohol beverage business at examples of alcohol content statements (d) Form of address—(1) General. The such additional place or address, and that comply with the requirements of address consists of the city and State (ii) The label also contains in direct this part: where the operation occurred, or the conjunction therewith, appropriate (i) ‘‘40% alc/vol’’; city and State of the principal place of descriptive material indicating the (ii) ‘‘Alc. 40 percent by vol.’’; business of the person performing the function occurring at such additional (iii) ‘‘Alc 40% by vol’’; and operation. This information must be place or address in connection with the (iv) ‘‘40% Alcohol by Volume.’’ consistent with the information on the particular product (such as ‘‘distilled (c) Tolerances. A tolerance of plus or basic permit. Addresses may, but are not by.’’) minus 0.3 percentage points is allowed required to, include additional (e) Special rule for straight whiskies. for actual alcohol content that is above information such as street names, If ‘‘straight whiskies’’ (see § 5.143) of the or below the labeled alcohol content. counties, zip codes, phone numbers, same type are distilled in the same State § 5.66 Name and address for domestically and website addresses. The postal by two or more different distillers and bottled distilled spirits that were wholly abbreviation of the State name may be are combined (either at the time of made in the United States. used; for example, California may be bottling or at a warehouseman’s bonded (a) General. Domestically bottled abbreviated as CA. premises for further storage) and distilled spirits that were wholly made (2) More than one address. If the subsequently bottled and labeled as in the United States and contain no bottler, distiller, or processor listed on ‘‘straight whisky,’’ that ‘‘straight imported distilled spirits must be the name and address statement is the whisky’’ must bear a label that contains labeled in accordance with this section. actual operator of more than one name and address information of the (See §§ 5.67 and 5.68 for name and distilled spirits plant engaged in bottler. If that combined ‘‘straight address requirements applicable to bottling, distilling, or processing whisky’’ is bottled by or for the distilled spirits that are not wholly operations, as applicable, the label may distillers, in lieu of the name and made in the United States.) For state, immediately following the name address of the bottler, the label may purposes of this section, a ‘‘processor’’ of the permittee, the addresses of those contain the words ‘‘distilled by,’’ who solely bottles the labeled distilled other plants, in addition to the address followed immediately by the names (or spirits will be considered the ‘‘bottler.’’ of the plant at which the distilled spirits trade names) and addresses of the (b) Form of statement. The bottler, were bottled. In this situation, the different distillers who distilled a distiller, or processor of the distilled address where the operation occurred portion of the ‘‘straight whisky’’ and the spirits must be identified by a phrase must be indicated on the label or on the percentage of ‘‘straight whisky’’ distilled describing the function performed by container by printing, coding, or other by each distiller, with a tolerance of that person. If that person performs markings. plus or minus 2 percent. If ‘‘straight more than one function, the label may (3) Principal place of business. The whisky’’ consists of a mixture of (but is not required to) so indicate. label may provide the address of the ‘‘straight whiskies’’ of the same type (1) If the name of the bottler appears bottler’s, distiller’s, or processor’s from two or more different distilleries of on the label, it must be preceded by a principal place of business, in lieu of the same proprietor located within the phrase such as ‘‘bottled by,’’ ‘‘canned the place where the bottling, distilling, same State, and if that ‘‘straight whisky’’ by,’’ ‘‘packed by,’’ or ‘‘filled by,’’ or other operation occurred, provided is bottled by or for that proprietor, in followed by the name and address of the that the address where the operation lieu of the name and address of the bottler. occurred is indicated on the label or on bottler, the ‘‘straight whisky’’ may bear

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a label containing the words ‘‘distilled is not under the same ownership, that information must be consistent with the by’’ followed by the name (or trade trade name may not be used on a label information on the basic permit. name) of the proprietor and the in a way that tends to mislead Addresses may, but are not required to, addresses of the different distilleries consumers as to the identity or location include additional information such as that distilled a portion of the ‘‘straight of the distiller or bottler. street names, counties, zip codes, phone whisky.’’ numbers, and website addresses. (f) State of distillation for whisky. (1) § 5.67 Name and address for domestically (2) If the bottler or processor listed on The State of distillation, which is the bottled distilled spirits that were bottled the name and address statement is the after importation. State in which original distillation takes actual operator of more than one place, must appear on the label of any (a) General. This section applies to distilled spirits plant engaged in type of whisky defined in § 5.143(c)(2) distilled spirits that were bottled after bottling, distilling, or processing through (7), which is distilled in the importation. See § 5.68 for name and operations, as applicable the label may United States. The State of distillation address requirements applicable to state, immediately following the name may appear on any label and must be imported distilled spirits that were of the bottler, the addresses of those shown in at least one of the following bottled after importation. See 19 CFR other plants, in addition to the address ways: parts 102 and 134 for U.S. Customs and of the plant at which the distilled spirits (i) By including a ‘‘distilled by’’ (or Border Protection country of origin were bottled. In this situation, the ‘‘distilled and bottled by’’ or any other marking requirements. address where the operation occurred phrase including the word ‘‘distilled’’) (b) Distilled spirits bottled after must be indicated on the label or on the statement as part of the mandatory name importation in the United States. container by printing, coding, or other and address statement, followed by a Distilled spirits bottled, without further markings. single location. blending, making, preparing, producing, (3) Principal place of business. The (ii) By including the name of the State manufacturing, or distilling activities label may provide the address of the in which original distillation occurred after importation, must bear one of the bottler’s or processor’s principal place immediately adjacent to the class or following name and address statements: of business, in lieu of the place where type designation (such as ‘‘Kentucky (1) The name and address of the the bottling, distilling, or other bourbon whisky’’), as long as the bottler, preceded by the words ‘‘bottled operation occurred, provided that the product was both distilled and aged in by,’’ ‘‘canned by,’’ ‘‘packed by,’’ or address where the operation occurred is that State in conformance with the ‘‘filled by’’; indicated on the label or on the requirements of § 5.143(b). (2) If the distilled spirits were bottled container by printing, coding, or other (iii) By including a separate for the person responsible for the markings. statement, such as ‘‘Distilled in [name of importation, the words ‘‘imported by (f) Trade or operating names. A trade State].’’ and bottled (canned, packed, or filled) name may be used if the trade name is (2) The appropriate TTB officer may in the United States for’’ (or a similar listed on the basic permit or other require that the State of distillation or appropriate phrase) followed by the qualifying documentation and if its use other information appear on a label of name and address of the principal place on the label would not create any any whisky subject to the requirements of business in the United States of the misleading impression as to the age, of paragraph (f)(1) of this section (and person responsible for the importation; origin, or identity of the product. may prescribe placement requirements (3) If the distilled spirits were bottled for such information), even if that State by the person responsible for the § 5.68 Name and address for distilled appears in the name and address importation, the words ‘‘imported by spirits that were imported in a container. statement, if such additional and bottled (canned, packed, or filled) (a) General. This section applies to information is necessary to negate any in the United States by’’ (or a similar distilled spirits that were imported in a misleading or deceptive impression that appropriate phrase) followed by the container, as defined in § 5.1. See § 5.67 might otherwise be created as regards name and address of the principal place for name and address requirements the actual State of distillation. of business in the United States of the applicable to distilled spirits that were (3) In the case of ‘‘light whisky,’’ the person responsible for the importation. domestically bottled after importation. State name ‘‘Kentucky’’ or ‘‘Tennessee’’ (c) Distilled spirits that were subject to See 19 CFR parts 102 and 134 for U.S. may not appear on any label, except as blending or other production activities Customs and Border Protection country a part of a name and address as after importation. Distilled spirits that, of origin marking requirements. specified in paragraph (a)(1), (2), or (4) after importation in bulk, were blended, (b) Mandatory labeling statement. of this section. made, prepared, produced, Distilled spirits imported in containers, (g) Trade or operating names. (1) The manufactured or further distilled, may as defined in § 5.1, must bear a label name of the person appearing on the not bear an ‘‘imported by’’ statement on stating the words ‘‘imported by’’ or a label may be the trade name or the the label, but must instead be labeled in similar appropriate phrase, followed by operating name, as long as it is identical accordance with the rules set forth in the name and address of the importer. to a trade or operating name appearing § 5.66 for mandatory and optional (1) For purposes of this section, the on the basic permit. In the case of a labeling statements. importer is the holder of the importer’s distillation statement for spirits bottled (d) Optional statements. In addition to basic permit who either makes the in bond, the name or trade name under the statements required by paragraph original Customs entry or is the person which the spirits were distilled must be (a)(1) of this section, the label may also for whom such entry is made, or the shown. state the name and address of the holder of the importer’s basic permit (2) A trade name may be used only if principal place of business of the who is the agent, distributor, or the use of that name would not create foreign producer. franchise holder for the particular brand a misleading impression as to the age, (e) Form of address. (1) The address of imported alcohol beverages and who origin, or identity of the product. For consists of the city and State where the places the order abroad. example, if a distiller or bottler of the operation occurred, or the city and State (2) The address of the importer must spirits authorizes the use of its trade of the principal place of business of the be stated as the city and State of the name by another distiller or bottler that person performing the operation. This principal place of business and must be

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consistent with the address reflected on may be abbreviated as ‘‘L’’. The word (b) In the case of gin manufactured by the importer’s basic permit. Addresses ‘‘milliliters’’ may be abbreviated as a process of continuous distillation or in may, but are not required to, include ‘‘ml.,’’ ‘‘mL.,’’ or ‘‘ML.’’ Net contents in the case of neutral spirits, a label on the additional information such as street U.S. equivalents and in metric container must state the name of the names, counties, zip codes, phone equivalents such as centiliters may commodity from which the gin or numbers, and website addresses. The appear on a label and, if used, must neutral spirits were distilled. The postal abbreviation of the State name appear in the same field of vision as the statement of the name of the commodity may be used; for example, California metric net contents statement. must appear in substantially the may be abbreviated as CA. (b) Tolerances. (1) The following following form: ‘‘Distilled from grain’’ (c) Optional statements. In addition to tolerances are permissible for purposes or ‘‘Distilled from cane products’’. the statements required by paragraph of applying paragraph (a) of this section: (b)(1) of this section, the label may also (i) Errors in measuring. Discrepancies § 5.72 Coloring materials. state the name and address of the due to errors in measuring that occur in The words ‘‘artificially colored’’ must principal place of business of the filling conducted in compliance with appear on a label of any distilled spirits foreign producer. good commercial practice; product containing synthetic or natural (d) Form of address. The ‘‘place’’ (ii) Differences in capacity. materials that primarily contribute stated must be the city and State, shown Discrepancies due exclusively to color, or when information on a label on the basic permit or other qualifying differences in the capacity of containers, conveys the impression that a color was document, of the premises at which the resulting solely from unavoidable derived from a source other than the operations took place; and the place for difficulties in manufacturing the actual source of the color, except that: each operation that is designated on the containers so as to be of uniform (a) If no coloring material other than label must be shown. capacity, provided that the discrepancy a color exempt from certification under (e) Trade or operating names. A trade does not result from a container design FDA regulations has been added, a name may be used if the trade name is that prevents the manufacture of truthful statement of the source of the listed on the basic permit or other containers of an approximately uniform color may appear in lieu of the words qualifying documentation and if its use capacity; and ‘‘artificially colored,’’ for example, on the label would not create any (iii) Differences in atmospheric ‘‘Contains Beta Carotene’’ or ‘‘Colored misleading impression as to the age, conditions. Discrepancies in measure with beet extract.’’ See 21 CFR parts 73 origin, or identity of the product. due to differences in atmospheric and 74 for the list of such colors under conditions in various places, including Food and Drug Administration (FDA) § 5.69 Country of origin. discrepancies resulting from the regulations; (a) Pursuant to U.S. Customs and ordinary and customary exposure of (b) If no coloring material has been Border Protection (CBP) regulations at alcohol beverage products in containers added other than one certified as 19 CFR parts 102 and 134, a country of to evaporation, provided that the suitable for use in foods by the FDA, the origin statement must appear on the discrepancy is determined to be words ‘‘(to be filled in with name of) container of distilled spirits imported in reasonable on a case by case basis. certified color added’’ or ‘‘Contains containers or bottled in the United (2) Shortages and overages. A Certified Color’’ may appear in lieu of States after importation. Labeling contents shortage in certain of the the words ‘‘artificially colored’’; and statements with regard to the country of containers in a shipment may not be (c) If no coloring material other than origin must be consistent with CBP counted against a contents overage in caramel has been added, the words regulations. The determination of the other containers in the same shipment ‘‘colored with caramel,’’ ‘‘contains country (or countries) of origin, for for purposes of determining compliance caramel color,’’ or another statement imported wines, as well as for blends of with the requirements of this section. specifying the use of caramel color, may imported distilled spirits with appear in lieu of the words ‘‘artificially domestically produced distilled spirits, § 5.71 Neutral spirits and name of colored.’’ However, no statement of any commodity. must comply with CBP regulations. type is required for the use of caramel (b) It is the responsibility of the (a) In the case of distilled spirits color in brandy, rum, or Tequila, or in importer or bottler, as appropriate, to (other than cordials, liqueurs, flavored any type of whisky other than straight neutral spirits, including flavored ensure compliance with the country of whisky if used at not more than 21⁄2 origin marking requirement, both when vodka, and distilled spirits specialty percent by volume of the finished distilled spirits are imported in products) manufactured by blending or product. containers and when imported distilled other processing, if neutral spirits were (d) As provided in § 5.61, the use of spirits are subject to bottling, blending, used in the production of the spirits, the FD&C Yellow No. 5, carmine, or or production activities in the United percentage of neutral spirits so used and cochineal extract must be specifically States. Industry members may seek a the name of the commodity from which stated on the label even if the label also ruling from CBP for a determination of the neutral spirits were distilled must contains a phrase such as ‘‘contains the country of origin for their product. appear on a label. The statement of certified color’’ or ‘‘artificially colored.’’ percentage and the name of the § 5.70 Net contents. commodity must be in substantially the § 5.73 Treatment of whisky or brandy with The requirements of this section following form: ‘‘ll% neutral spirits wood. apply to the net contents statement distilled from llll (insert grain, The words ‘‘colored and flavored with required by § 5.63. cane products, fruit, or other commodity wood lll’’ (inserting ‘‘chips,’’ (a) General. The volume of spirits in as appropriate)’’; or ‘‘ll% neutral ‘‘slabs,’’ etc., as appropriate) must the container must appear on a label as spirits (vodka) distilled from llll appear immediately adjacent to, and in a net contents statement. The net (insert grain, cane products, fruit, or the same size of type as, the class and contents for the external container of an other commodity as appropriate)’’; or type designation under subpart I of this aggregate package must be stated as ‘‘ll% (grain) (cane products), (fruit) part for whisky and brandy treated, in specified in § 5.204. The word ‘‘liter’’ neutral spirits’’, or ‘‘ll% grain whole or in part, with wood through may be alternatively spelled ‘‘litre’’ or spirits.’’ percolation or otherwise during

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distillation or storage, other than the age and percentage statements for (4) In the case of whisky made in the through contact with an oak barrel. whisky: United States and stored in reused oak However, the statement specified in this (1) In the case of whisky, whether or barrels, other than corn whisky, white section is not required in the case of not mixed or blended but containing no whisky, unaged whisky, and light brandy treated with an infusion of oak neutral spirits, the age of the youngest whisky, in lieu of the words ‘‘ll years chips in accordance with whisky in the product. The age old’’ specified in paragraphs (b)(1) and § 5.155(b)(3)(B). statement must appear substantially as (b)(2) of this section, the period of follows: ‘‘ll years old’’; storage in the reused oak barrels must § 5.74 Statements of age, storage, and appear on the label as follows: ‘‘stored percentage. (2) In the case of whisky containing neutral spirits, whether or not mixed or ll years in reused cooperage;’’ (a) General. (1) As defined in § 5.1, blended, if any straight whisky or other (5) In the case of white whisky that is age is the length of time during which, whisky in the product is less than 4 not aged, the statement must appear as after distillation and before bottling, the years old, the percentage by volume of follows: ‘‘unaged,’’ ‘‘not aged,’’ or a distilled spirits have been stored in oak each such whisky and the age of each similar statement. The designation barrels in such a manner that chemical such whisky (the age of the youngest of ‘‘unaged whisky’’ satisfies this changes take place as a result of direct the straight whiskies or other whiskies requirement. contact with the wood. For bourbon if the product contains two or more of (c) Statements of age for rum, brandy, whisky, rye whisky, wheat whisky, malt either). The age and percentage and agave spirits. A statement of age on whisky, or rye malt whisky, and straight statement for a straight whisky and labels of rums, brandies, and agave whiskies other than straight corn other whisky must appear immediately spirits is optional, except that, in the whisky, aging must occur in charred adjacent to the neutral spirits statement case of brandy (other than immature new oak barrels. required by § 5.70 and must read brandies, fruit brandies, marc brandy, (2) If an age statement is used, it is substantially as follows: pomace brandy, Pisco brandy, and grappa brandy, which are not permissible to understate the age of a (i) If the product contains only one customarily stored in oak barrels) not product, but overstatements of age are straight whisky and no other whisky: stored in oak barrels for a period of at prohibited. However, the age statement ‘‘ll percent straight whisky ll years least two years, a statement of age must may not conflict with the standard of old;’’ appear on the label. Any statement of identity, if aging is required as part of (ii) If the product contains more than the standard of identity. For example, age authorized or required under this one straight whisky but no other paragraph must appear substantially as the standard of identity for straight rye ll whisky: ‘‘ percent straight whiskies follows: ‘‘ll years old,’’ with the whisky requires that the whisky be aged ll years or more old.’’ In this case the blank to be filled in with the age of the for a minimum of 2 years, so the age age blank must state the age of the statement ‘‘Aged 1 year,’’ would be youngest distilled spirits in the product. youngest straight whisky in the product. (d) Statement of storage for grain prohibited, even if the spirits were However, in lieu of the foregoing spirits. In the case of grain spirits, the actually aged for more than 2 years, statement, the following statement may period of storage in oak barrels may because it is inconsistent with the appear on the label: ‘‘ll percent appear on a label immediately adjacent standard of identity. straight whisky ll years old, ll to the percentage statement required (3) If spirits are aged in more than one percent straight whisky ll years old, under § 5.73 of this part, for example: oak barrel (for example, if a whisky is and ll percent straight whisky ll ‘‘ll% grain spirits stored ll years in aged 2 years in a new charred oak barrel years old’’; oak barrels.’’ and then placed into a second new (iii) If the product contains only one (e) Other distilled spirits. (1) charred oak barrel for an additional 6 straight whisky and one other whisky: Statements regarding age or maturity or months,) only the time spent in the first ‘‘ll percent straight whisky ll years similar statements or representations on barrel is counted towards the ‘‘age.’’ old, ll percent whisky ll years labels for all other spirits, except neutral (4) The age may be stated in years, old’’; or spirits, are permitted only when the months, or days. (iv) If the product contains more than distilled spirits are stored in an oak (b) Age statements and percentage of one straight whisky and more than one barrel and, once dumped from the type statements for whisky. For all other whisky: ‘‘ll percent straight barrel, subjected to no treatment besides domestic or foreign whiskies that are whiskies ll years or more old, ll mixing with water, filtering, and aged less than four years, including percent whiskies ll years or more bottling. If batches are made from blends containing a whisky that is aged old.’’ In this case, the age blanks must barrels of spirits of different ages, the less than four years, an age statement state the age of the youngest straight label may only state the age of the and percentage of types of whisky whisky and the age of the youngest youngest spirits. statement is required to appear on a other whisky. However, in lieu of the (2) Statements regarding age or label, unless the whisky is labeled as foregoing statement, the following maturity or similar statements of neutral ‘‘bottled in bond’’ in conformity with statement may appear on the label: spirits (except for grain spirits as stated § 5.88. For all other whiskies, the ‘‘ll percent straight whisky ll years in paragraph (c) of this section) are statements are optional, but if used, they old, ll percent straight whisky ll prohibited from appearing on any label. must conform to the formatting years old, ll percent whisky ll (f) Other age representations. (1) If a requirements listed below. Moreover, if years old, and ll percent whisky ll representation that is similar to an age the bottler chooses to include a years old’’; or maturity statement permitted under statement of age or percentage on the (3) In the case of an imported rye this section appears on a label, a label of a product that is four years old whisky, wheat whisky, malt whisky, or statement of age, in a manner that is or more and that contains neutral rye malt whisky, a label on the product conspicuous and in characters at least spirits, the statement must appear must state each age and percentage in half the type size of the representation, immediately adjacent to the neutral the manner and form that would be must also appear on each label that spirits statement required by § 5.70. The required if the whisky had been made carries the representation, except in the following are the allowable formats for in the United States; following cases:

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(i) The use of the word ‘‘old’’ or ‘‘statement or representation’’ includes major food allergens used as fining or another word denoting age as part of the explicit and implicit statements and processing agents, must be declared, brand name of the product is not representations. except when covered by a petition for deemed to be an age representation that exemption approved by the appropriate Food Allergen Labeling requires a statement of age; and TTB officer under § 5.83. The major (ii) Labels of whiskies and brandies § 5.82 Voluntary disclosure of major food food allergens declaration must consist (other than immature brandies, pomace allergens. of the word ‘‘Contains’’ followed by a brandy, marc brandy, Pisco brandy, and (a) Definitions. For purposes of this colon and the name of the food source grappa brandy) not required to bear a section, the following terms or phrases from which each major food allergen is statement of age, and rum and agave have the meanings indicated. derived (for example, ‘‘Contains: egg’’). spirits aged for not less than four years, (1) Major food allergen means any of may contain general inconspicuous age, § 5.83 Petitions for exemption from major the following: food allergen labeling. maturity or similar representations (i) Milk, egg, fish (for example, bass, without the label having to bear an age (a) Submission of petition. Any flounder, or cod), Crustacean shellfish person may petition the appropriate statement. (for example, crab, lobster, or shrimp), (2) Distillation dates (which may be TTB officer to exempt a particular tree nuts (for example, almonds, pecans, product or class of products from the an exact date or a year) may appear on or walnuts), wheat, peanuts, and a label of spirits where the spirits are labeling requirements of § 5.82. The soybeans; or burden is on the petitioner to provide manufactured solely through (ii) A food ingredient that contains distillation. A distillation date may only scientific evidence (as well as the protein derived from a food specified in analytical method used to produce the appear if an optional or mandatory age paragraph (a)(1)(i) of this section, statement is used on the label and must evidence) that demonstrates that the except: finished product or class of products, as appear in the same field of vision as the (A) Any highly refined oil derived age statement. derived by the method specified in the from a food specified in paragraph petition, either: Subpart F—Restricted Labeling (a)(1)(i) of this section and any (1) Does not cause an allergic Statements. ingredient derived from such highly response that poses a risk to human refined oil; or health; or § 5.81 General. (B) A food ingredient that is exempt (2) Does not contain allergenic protein (a) Application. The labeling from major food allergen labeling derived from one of the foods identified practices, statements, and requirements pursuant to a petition for in § 5.82(a)(1)(i), even though a major representations in this subpart may be exemption approved by the Food and food allergen was used in production. used on distilled spirits labels only Drug Administration (FDA) under 21 (b) Decision on petition. TTB will when used in compliance with this U.S.C. 343(w)(6) or pursuant to a notice approve or deny a petition for subpart. In addition, if any of the submitted to FDA under 21 U.S.C. exemption submitted under paragraph practices, statements, or representations 343(w)(7), provided that the food (a) of this section in writing within 180 in this subpart are used elsewhere on ingredient meets the terms or days of receipt of the petition. If TTB containers or in packaging, they must conditions, if any, specified for that does not provide a written response to comply with the requirements of this exemption. the petitioner within that 180-day subpart. For purposes of this subpart: (2) Name of the food source from period, the petition will be deemed (1) The term ‘‘label’’ includes all which each major food allergen is denied, unless an extension of time for labels on distilled spirits containers on derived. ‘‘Name of the food source from decision is mutually agreed upon by the which mandatory information may which each major food allergen is appropriate TTB officer and the appear, as set forth in § 5.61(a), as well derived’’ means the name of the food as petitioner. TTB may confer with the as any other label on the container. listed in paragraph (a)(1)(i) of this Food and Drug Administration (FDA) on (2) The term ‘‘container’’ includes all section, except that: petitions for exemption, as appropriate parts of the distilled spirits container, (i) In the case of a tree nut, it means and as FDA resources permit. TTB may including any part of a distilled spirits the name of the specific type of nut (for require the submission of product container on which mandatory example, almonds, pecans, or walnuts); samples and other additional information may appear, as well as and information in support of a petition; those parts of the container on which (ii) In the case of Crustacean shellfish, however, unless required by TTB, the information does not satisfy mandatory it means the name of the species of submission of samples or additional labeling requirements, as set forth in Crustacean shellfish (for example, crab, information by the petitioner after § 5.61(b). lobster, or shrimp); and submission of the petition will be (3) The term ‘‘packaging’’ includes (iii) The names ‘‘egg’’ and ‘‘peanuts,’’ treated as the withdrawal of the initial any carton, case, carrier, individual as well as the names of the different petition and the submission of a new covering or other packaging of such types of tree nuts, may be expressed in petition. An approval or denial under containers used for sale at retail, but either the singular or plural form, and this section will constitute final agency does not include shipping cartons or the name ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’ action. cases that are not intended to may be used instead of ‘‘soybeans.’’ (c) Resubmission of a petition. After a accompany the container to the (b) Voluntary labeling standards. petition for exemption is denied under consumer. Major food allergens used in the this section, the petitioner may resubmit (b) Statement or representation. For production of a distilled spirits product the petition along with supporting purposes of the practices in this subpart, may, on a voluntary basis, be declared materials for reconsideration at any the term ‘‘statement or representation’’ on any label affixed to the container. time. TTB will treat this submission as includes any statement, design, device, However, if any one major food allergen a new petition. or representation, and includes pictorial is voluntarily declared, all major food (d) Availability of information—(1) or graphic designs or representations as allergens used in production of the General. TTB will promptly post to its well as written ones. The term distilled spirits product, including website (https://www.ttb.gov) all

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petitions received under this section, as statements are truthful, specific and not manufactured in accordance with well as TTB’s responses to those misleading. Statements or logos paragraphs (a)(1) through (6) of this petitions. Any information submitted in indicating environmental, sustainable section and may only be so labeled if support of the petition that is not posted agricultural, or social justice the laws and regulations of the country to the TTB website will be available to certification (such as, ‘‘Biodyvin,’’ in which the spirits are manufactured the public pursuant to the Freedom of ‘‘Salmon-Safe,’’ or ‘‘Fair Trade authorize the bottling of spirits in bond Information Act, at 5 U.S.C. 552, except Certified’’) may appear on distilled and require or specifically authorize where a request for confidential spirits that are actually certified by the such spirits to be so labeled. The treatment is granted under paragraph appropriate organization. ‘‘bottled in bond’’ or synonymous (d)(2) of this section. statement must be immediately (2) Requests for confidential treatment § 5.86 [Reserved] followed, in the same font and type size, of business information. A person who Other Label Terms by the name of the country under whose provides trade secrets or other laws and regulations such distilled commercial or financial information in § 5.87 ‘‘Barrel Proof’’ and similar terms. spirits were so bottled. connection with a petition for (a) The term ‘‘barrel proof’’ or ‘‘cask (c) Domestically manufactured spirits exemption under this section may strength’’ may be used to refer to labeled as ‘‘bottled in bond’’ or with request that TTB give confidential distilled spirits stored in wood barrels some other synonymous statement must treatment to that information. A failure only when the bottling proof is not more bear the real name of the distillery or to request confidential treatment at the than two degrees lower than the proof the trade name under which the distiller time the information in question is of the spirits when the spirits are distilled and warehoused the spirits, submitted to TTB will constitute a dumped from the barrels. and the number of the distilled spirits waiver of confidential treatment. A (b) The term ‘‘original proof,’’ plant in which distilled, and the request for confidential treatment of ‘‘original barrel proof,’’ ‘‘original cask number of the distilled spirits plant in information under this section must strength,’’ or ‘‘entry proof’’ may be used which bottled. The label may also bear conform to the following standards: only if the distilled spirits were stored the name or trade name of the bottler. (i) The request must be in writing; in wooden barrels and the proof of the (ii) The request must clearly identify spirits entered into the barrel and the § 5.89 Multiple distillation claims. the information to be kept confidential; proof of the bottled spirits are the same. (a) Truthful statements about the (iii) The request must relate to number of distillations, such as ‘‘double information that constitutes trade § 5.88 Bottled in bond. distilled,’’ ‘‘distilled three times,’’ or secrets or other confidential commercial (a) The term ‘‘bond,’’ ‘‘bonded,’’ similar terms to convey multiple or financial information regarding the ‘‘bottled in bond,’’ or ‘‘aged in bond,’’ or distillations, may be used; except that business transactions of an interested phrases containing these or synonymous only additional distillations beyond person, the disclosure of which would terms, may be used (including as part of those required to meet the product’s cause substantial harm to the the brand name) only if the distilled production standards may be counted as competitive position of that person; spirits are: additional distillations. For example, if (iv) The request must set forth the (1) Composed of the same kind (type, in order to meet the production reasons why the information should not if one is applicable to the spirits, standards for vodka (which requires the be disclosed, including the reasons why otherwise class) of spirits distilled from spirits reach an alcohol content level of the disclosure of the information would the same class of materials; at least 95 percent), a particular product prejudice the competitive position of (2) Distilled in the same distilling must be distilled three times, and then the interested person; and season (as defined in § 5.1) by the same the vodka is distilled two more times, (v) The request must be supported by distiller at the same distillery. that vodka could be labeled as ‘‘triple a signed statement by the interested (3) Stored for at least four years in distilled.’’ For the purposes of this person, or by an authorized officer or wooden barrels wherein the spirits have section only, the term ‘‘distillation’’ employee of that person, certifying that been in contact with the wood surface, means a single run through a pot still or the information in question is a trade except for gin and vodka, which must be a single run through a column of a secret or other confidential commercial stored for at least four years in wooden column (reflux) still. For example, if a or financial information and that the barrels coated or lined with paraffin or column still has three separate columns, information is not already in the public other substance which will preclude one complete additional run through the domain. contact of the spirits with the wood system would constitute three surface; Production Claims additional distillations. (4) Unaltered from their original (b) The number of distillations may be § 5.84 Use of the term ‘‘organic.’’ condition or character by the addition or understated but may not be overstated. Use of the term ‘‘organic’’ is permitted subtraction of any substance other than § 5.90 Terms related to Scotland. if any such use complies with United by filtration, chill proofing, or other States Department of Agriculture physical treatments (which do not (a) The words ‘‘Scotch,’’ ‘‘Scots,’’ (USDA) National Organic Program rules involve the addition of any substance ‘‘Highland,’’ or ‘‘Highlands,’’ and (7 CFR part 205), as interpreted by the which will remain in the finished similar words connoting, indicating, or USDA. product or result in a change in class or commonly associated with Scotland, type); may only be used to designate distilled § 5.85 Environmental, sustainability, and (5) Reduced in proof by the addition spirits wholly manufactured in similar statements. of only pure water to 50 percent alcohol Scotland, except that the term ‘‘Scotch Statements related to environmental by volume (100 degrees of proof); and whisky’’ may appear in the designation or sustainable agricultural practices, (6) Bottled at 50 percent alcohol by for a flavored spirit (‘‘Flavored Scotch social justice principles, and other volume (100 degrees of proof). Whisky’’) or in a truthful statement of similar statements (such as, ‘‘Produced (b) Imported spirits labeled as composition (‘‘Scotch whisky with using 100% solar energy’’ or ‘‘Carbon ‘‘bottled in bond’’ or other synonymous natural flavors’’) where the base Neutral’’) may appear as long as the term described above must be distilled spirit meets the requirements

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for a Scotch whisky designation, statement or representation that is false scientific, or technical matter. For regardless of where the finished product or untrue in any particular. example, an otherwise truthful is manufactured. statement may be misleading because of § 5.103 Obscene or indecent depictions. (b) In accordance with § 5.127, the omission of material information, statements relating to government Distilled spirits labels, containers, or the disclosure of which is necessary to supervision may appear on Scotch packaging may not contain any prevent the statement from being whisky containers only if such labeling statement, design, device, picture, or misleading. statements are required or specifically representation that is obscene or (2) As set forth in § 5.212(b), all authorized by the applicable regulations indecent. claims, whether implicit or explicit, of the United Kingdom. Subpart H—Labeling Practices That must have a reasonable basis in fact. § 5.91 Use of the term ‘‘pure.’’ Are Prohibited If They Are Misleading Any claim on distilled spirits labels, containers, or packaging that does not Distilled spirits labels, containers, or § 5.121 General. packaging may not bear the word have a reasonable basis in fact, or (a) Application. The labeling practices ‘‘pure’’ unless it: cannot be adequately substantiated (a) Refers to a particular ingredient that are prohibited if misleading set upon the request of the appropriate TTB used in the production of the distilled forth in this subpart apply to any officer, is considered misleading. spirits, and is a truthful representation distilled spirits label, container, or about that ingredient; packaging. For purposes of this subpart: § 5.123 Guarantees. (b) Is part of the bona fide name of a (1) The term ‘‘label’’ includes all labels on distilled spirits containers on Distilled spirits labels, containers, or permittee or retailer for which the packaging may not contain any distilled spirits are bottled; or which mandatory information may appear, as set forth in § 5.61(a), as well statement relating to guarantees if the (c) Is part of the bona fide name of the appropriate TTB officer finds it is likely permittee that bottled the distilled as any other label on the container; (2) The term ‘‘container’’ includes all to mislead the consumer. However, spirits. parts of the distilled spirits container, money-back guarantees are not Subpart G—Prohibited Labeling including any part of a distilled spirits prohibited. container on which mandatory Practices § 5.124 Disparaging statements. information may appear, as well as § 5.101 General. those parts of the container on which (a) General. Distilled spirits labels, (a) Application. The prohibitions set information does not satisfy mandatory containers, or packaging may not forth in this subpart apply to any labeling requirements, as set forth in contain any false or misleading distilled spirits label, container, or § 5.61(b); and statement that explicitly or implicitly packaging. For purposes of this subpart: (3) The term ‘‘packaging’’ includes disparages a competitor’s product. (1) The term ‘‘label’’ includes all any carton, case, carrier, individual (b) Examples. (1) An example of an labels on distilled spirits containers on covering or other packaging of such explicit statement that falsely disparages which mandatory information may containers used for sale at retail, but a competitor’s product is ‘‘Brand X is appear, as set forth in § 5.61(a), as well does not include shipping cartons or as any other label on the container; cases that are not intended to not aged in oak barrels,’’ when such (2) The term ‘‘container’’ includes all accompany the container to the statement is not true. parts of the distilled spirits container, consumer. (2) An example of an implicit including any part of a distilled spirits (b) Statement or representation. For statement that disparages competitors’ container on which mandatory purposes of this subpart, the term products in a misleading fashion is ‘‘We information may appear, as well as ‘‘statement or representation’’ includes do not add arsenic to our distilled those parts of the container on which any statement, design, device, or spirits,’’ when such a claim may lead information does not satisfy mandatory representation, and includes pictorial or consumers to falsely believe that other labeling requirements, as set forth in graphic designs or representations as distillers do add arsenic to their § 5.61(b); and well as written ones. The term distilled spirits. (3) The term ‘‘packaging’’ includes ‘‘statement or representation’’ includes (c) Truthful and accurate any carton, case, carrier, individual explicit and implicit statements and comparisons. This section does not covering or other packaging of such representations. prevent truthful and accurate containers used for sale at retail, but comparisons between products (such as, does not include shipping cartons or § 5.122 Misleading statements or representations. ‘‘Our liqueur contains more strawberries cases that are not intended to than Brand X’’) or statements of opinion accompany the container to the (a) General prohibition. Distilled spirits labels, containers, or packaging (such as, ‘‘We think our rum tastes consumer. better than any other distilled spirits on (b) Statement or representation. For may not contain any statement or the market’’). purposes of the prohibited practices in representation, irrespective of falsity, this subpart, the term ‘‘statement or that is misleading to consumers as to the § 5.125 Tests or analyses. representation’’ includes any statement, age, origin, identity, or other design, device, or representation, and characteristics of the distilled spirits, or Distilled spirits labels, containers, or includes pictorial or graphic designs or with regard to any other material factor. packaging may not contain any representations as well as written ones. (b) Ways in which statements or statement or representation of or The term ‘‘statement or representation’’ representations may be misleading. (1) relating to analyses, standards, or tests, includes explicit and implicit A statement or representation is whether or not it is true, that is likely statements and representations. prohibited, irrespective of falsity, if it to mislead the consumer. An example of directly creates a misleading such a misleading statement is ‘‘tested § 5.102 False or untrue statements. impression, or if it does so indirectly and approved by our research Distilled spirits labels, containers, or through ambiguity, omission, inference, laboratories’’ if the testing and approval packaging may not contain any or by the addition of irrelevant, does not in fact have any significance.

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§ 5.126 Depictions of government material may contain a statement, alcohol, distilled spirits, or any symbols. design, or representation that tends to substance found within the distilled (a) Representations of the armed create a false or misleading impression spirits, as well as health-related forces and flags. Distilled spirits labels, that the distilled spirits product is a directional statements. The term also containers, or packaging may not show wine or malt beverage product, or that includes statements and claims that an image of any government’s flag or it contains wine or malt beverages. For imply that a physical or psychological any representation related to the armed example, the use of the name of a class sensation results from consuming the forces of the United States if the or type designation of a wine or malt distilled spirits, as well as statements representation, standing alone or beverage product, as set forth in parts 4 and claims of nutritional value (for considered together with any additional or 7 of this chapter, is prohibited, if the example, statements of vitamin content). language or symbols on the label, use of that name creates a misleading (2) Specific health claim means a type creates a false or misleading impression impression as to the identity of the of health-related statement that, that the product was endorsed by, made product. Homophones or coined words expressly or by implication, by, used by, or made under the that simulate or imitate a class or type characterizes the relationship of supervision of, the government designation are also prohibited. distilled spirits, alcohol, or any represented by that flag or the armed (b) Exceptions. This section does not substance found within the distilled forces of the United States. This section prohibit: spirits, to a disease or health-related does not prohibit the use of a flag as part (1) A truthful and accurate statement condition. Implied specific health of a claim of American origin or another of alcohol content; claims include statements, symbols, country of origin. (2) The use of a brand name of a wine vignettes, or other forms of (b) Government seals. Distilled spirits or malt beverage product as a distilled communication that suggest, within the labels, containers, or packaging may not spirits product brand name, provided context in which they are presented, contain any government seal or other that the overall label does not create a that a relationship exists between insignia that is likely to create a false or misleading impression as to the identity alcohol, distilled spirits, or any misleading impression that the product of the product; substance found within the distilled has been endorsed by, made by, used (3) The use of a wine or malt beverage spirits, and a disease or health-related by, or made for, or under the cocktail name as a brand name or a condition. supervision of, or in accordance with distinctive or fanciful name of a (3) Health-related directional the specification of, that government. distilled spirits product, provided that a statement means a type of health-related Seals required or specifically authorized statement of composition, in accordance statement that directs or refers by applicable law or regulations and with § 5.166, appears in the same field consumers to a third party or other used in accordance with such law or of vision as the brand name or the source for information regarding the regulations are not prohibited. distinctive or fanciful name and the effects on health of distilled spirits or overall label does not create a alcohol consumption. § 5.127 Depictions simulating government misleading impression about the (b) Rules for labeling—(1) Health- stamps or relating to supervision. identity of the product; related statements. In general, distilled Distilled spirits labels, containers, or (4) The use of truthful and accurate spirits may not contain any health- packaging may not contain any statements about the production of the related statement that is untrue in any statements, images, and designs that distilled spirits product, as part of a particular or tends to create a mislead consumers to believe that the statement of composition or otherwise, misleading impression as to the effects distilled spirits are manufactured or such as ‘‘flavored with chardonnay on health of alcohol consumption. TTB processed under government authority. grapes,’’ so long as such statements do will evaluate such statements on a case- Distilled spirits labels, containers, or not create a misleading impression as to by-case basis and may require as part of packaging may not contain images or the identity of the product; or the health-related statement a designs resembling a stamp of the U.S. (5) The use of terms that simply disclaimer or some other qualifying Government or any State or foreign compare distilled spirits products to statement to dispel any misleading government, other than stamps wine or malt beverages without creating impression conveyed by the health- authorized or required by this or any a misleading impression as to the related statement. other government, and may not contain identity of the product. (2) Specific health claims. (i) TTB will statements or indications that the consult with the Food and Drug distilled spirits are distilled, blended, § 5.129 Health-related statements. Administration (FDA), as needed, on the bottled, packed or sold under, or in (a) Definitions. When used in this use of a specific health claim on the accordance with, any municipal, State, section, the following terms have the distilled spirits. If FDA determines that Federal, or foreign authorization, law, or meaning indicated: the use of such a labeling claim is a drug regulations, unless such statement is (1) Health-related statement means claim that is not in compliance with the required or specifically authorized by any statement related to health (other requirements of the Federal Food, Drug, applicable law or regulation. If a than the warning statement required and Cosmetic Act, TTB will not approve municipal, State, or Federal under part 16 of this chapter) and the use of that specific health claim on Government permit number is stated on includes statements of a curative or the distilled spirits. distilled spirits labels, containers, or therapeutic nature that, expressly or by (ii) TTB will approve the use of a packaging, it may not be accompanied implication, suggest a relationship specific health claim on a distilled by any additional statement relating to between the consumption of alcohol, spirits label only if the claim is truthful that permit number. distilled spirits, or any substance found and adequately substantiated by within the distilled spirits product, and scientific or medical evidence; is § 5.128 Claims related to wine or malt health benefits or effects on health. The sufficiently detailed and qualified with beverages. term includes both specific health respect to the categories of individuals (a) General. Except as provided in claims and general references to alleged to whom the claim applies; adequately paragraph (b) of this section, no label, health benefits or effects on health discloses the health risks associated carton, case, or any other packaging associated with the consumption of with both moderate and heavier levels

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of alcohol consumption; and outlines organization. This section does not product, the components of that the categories of individuals for whom prohibit the use of such names where intermediate product are considered as any levels of alcohol consumption may the individual or organization has being directly added to the finished cause health risks. This information provided authorization for their use. product for purposes of determining the must appear as part of the specific (b) Documentation. The appropriate class or type of the finished product and health claim. TTB officer may request documentation for any applicable limitations or (3) Health-related directional from the bottler or importer to establish statements of composition. that the person or organization has statements. A health-related directional (3) Some distilled spirits products provided authorization to use the name statement is presumed misleading may conform to the standards of unless it: of that person or organization. (c) Disclaimers. Statements or other identity of more than one class. Such (i) Directs consumers in a neutral or products may be designated with any other non-misleading manner to a third representations do not violate this section if, taken as a whole, they create class designation defined in this subpart party or other source for balanced to which the products conform. information regarding the effects on no misleading impression as to an health of distilled spirits or alcohol implied endorsement either because of (c) Designating with both class and consumption; and the context in which they are presented type. If a product is designated with (ii)(A) Includes as part of the health- or because of the use of an adequate both the class and the type, the class related directional statement the disclaimer. and type must be in the same type size following disclaimer: ‘‘This statement and in the same field of vision. Subpart I—Standards of Identity for should not encourage you to drink or to Distilled Spirits (d) Words in a designation. All words increase your alcohol consumption for in a designation must be in the same health reasons;’’ or § 5.141 The standards of identity in type size and must appear together. (B) Includes as part of the health- general. related directional statement some other (a) General. Distilled spirits are § 5.142 Neutral spirits or alcohol. qualifying statement that the divided, for labeling purposes, into (a) The class neutral spirits. ‘‘Neutral appropriate TTB officer finds is classes, which are further divided into spirits’’ or ‘‘alcohol’’ are distilled spirits sufficient to dispel any misleading specific types. As set forth in § 5.63, a distilled from any suitable material at or impression conveyed by the health- distilled spirits product label must bear above 95 percent alcohol by volume related directional statement. the appropriate class, type or other (190° proof), and, if bottled, bottled at designation. The standards that define § 5.130 Appearance of endorsement. not less than 40 percent alcohol by the classes and types are known as the volume (80° proof). The source material (a) General. Distilled spirits labels, ‘‘standards of identity.’’ The classes and containers, or packaging may not may, but need not, appear in the class types of distilled spirits set forth in this designation (for example, ‘‘Apple include the name, or the simulation or subpart apply only to distilled spirits for Neutral Spirits’’ or ‘‘Grain Neutral abbreviation of the name, of any living beverage or other nonindustrial Spirits’’). Neutral spirits other than the individual of public prominence, or an purposes. existing private or public organization, (b) Rules. (1) Unless otherwise type ‘‘grain spirits’’ may be designated or any graphic, pictorial, or emblematic specified, when a standard of identity as ‘‘neutral spirits’’ or ‘‘alcohol’’ on a representation of the individual or states that a mash is of a particular label. Neutral spirits other than the type organization, if its use is likely to lead ingredient (such as ‘‘fermented mash of ‘‘grain spirits’’ that are stored in wood a consumer to falsely believe that the grain’’), the mash must be made entirely barrels may not be aged in wood barrels product has been endorsed, made, or of that ingredient without the addition at any time. used by, or produced for, or under the of other fermentable ingredients. (b) Types. The following chart lists supervision of, or in accordance with (2) Where an intermediate product is the types of neutral spirits and the rules the specifications of, such individual or used to manufacture a distilled spirits 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 distinc- tive 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 spe- cialty 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 des- ignated as such on the label. Grain spirits may not be designated as ‘‘neutral spirits’’ or ‘‘alcohol’’ on the label.

§ 5.143 Whisky. that corn whisky, white whisky, and ‘‘whisky’’ or ‘‘whiskey’’. Whisky (a) The class whisky. ‘‘Whisky’’ or unaged whisky need not be so stored), conforming to one of the types of and bottled at not less than 40 percent whisky defined in paragraph (c) of this ‘‘whiskey’’ is distilled spirits that is an ° alcoholic distillate from a fermented alcohol by volume (80 proof), and also section must be designated as that type mash of any grain distilled at less than includes mixtures of such distillates for on the label, except that whisky 95 percent alcohol by volume (190° which no specific standards of identity distilled in Tennessee may be called proof) having the taste, aroma, and are prescribed. ‘‘Tennessee Whisky’’ even if it conforms characteristics generally attributed to (b) Label designations. The word to one of the specific type designations. whisky, stored in oak barrels (except whisky may be spelled as either The place, state, or region where the

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whisky was distilled may appear as part (c)(2) through (6) and (10) through (14) with the production standards in the of the designation on the label if the of this section are distinctive products subsequent columns. The ‘‘source’’ distillation and any required aging took of the United States and must have the column indicates the source of the grain place in that location; blending and country of origin stated immediately mash used to make the whisky. The bottling need not have taken place in adjacent to the type designation if it is ‘‘distillation proof’’ indicates the the same place, state, or region (e.g., distilled outside of the United States, or allowable distillation proof for that type. ‘‘New York Bourbon Whisky’’ must be the whisky designation must be The ‘‘storage’’ column indicates the type distilled and aged in the State of New proceeded by the term ‘‘American type’’ of packages (barrels) in which the spirits York). However, if any whisky is made if the country of origin appears must be stored and limits for the proof partially from whisky distilled in a elsewhere on the label. For example, of the spirits when entering the country other than that indicated by the ‘‘Brazilian Corn Whisky,’’ ‘‘Rye Whisky packages. The ‘‘neutral spirits type designation, the label must indicate distilled in Sweden,’’ and ‘‘Blended permitted’’ column indicates whether the percentage of such whisky and the Whisky—Product of Japan’’ are neutral spirits may be used in the country where that whisky was statements that meet this country of product in their original state (and not distilled. Additionally, the label of origin requirement. ‘‘Light whisky’’ and as vehicles for flavoring materials), and whisky that does not meet one of the ‘‘Blended light whisky’’ may only be if so, how much may be used. The standards for specific types of whisky produced in the United States. ‘‘harmless coloring, flavoring, blending and that is comprised of components (c) Types of whisky. The following materials permitted’’ column indicates distilled in more than one country must tables set out the designations for whether harmless coloring, flavoring, or contain a statement of composition whisky. Table 1 sets forth the standards blending materials, other than neutral indicating the country of origin of each for whisky that are defined based on spirits in their original form, described component (such as ‘‘Whisky—50% production, storage, and processing in § 5.142, may be used in the product. from Japan, 50% from the United standards, while Table 2 sets forth rules The use of the word ‘‘straight’’ is a States’’). The word ‘‘bourbon’’ may not for the types of whisky that are defined further designation of a type, and is be used to describe any whisky or as distinctive products of certain optional. The designation ‘‘white whisky-based distilled spirits not countries. For the whiskies listed in whisky’’ may only appear on whiskies distilled and aged in the United States. Table 1, a whisky may use the that are clear in color and that meet the The whiskies defined in paragraphs designation listed, when it complies 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 Fermented grain mash Less than 190° ... Oak barrels with no No ...... Yes. be used as the des- minimum time re- ignation if the whisky quirement. does not meet one of the type designations. (2) Bourbon Whisky, Fermented mash of 160° or less ...... Charred new oak bar- No ...... Yes, except for bour- Rye Whisky, Wheat not less than 51%, rels at 125° or less. bon whisky. 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 160° or less ...... Required only if age is No ...... Yes. (Whisky conforming not less than 80% claimed on the to this standard must corn. label. If stored, must be designated as be stored at 125° or ‘‘corn whisky.’’). less in used or uncharred new oak barrels. (4) Straight Whisky ...... Fermented mash of 1600 or less ...... Charred new oak bar- No ...... No. less than 51% corn, rels at 1250 or less rye, wheat, malted for a minimum of barley, or malted rye two years. grain. (Includes mix- tures of straight whiskies made in the same state.). (5) Straight Bourbon Fermented mash of 160° or less ...... Charred new oak bar- No ...... No. Whisky, Straight Rye not less than 51%, rels at 125° or less Whisky, Straight respectively: Corn, for a minimum of Wheat Whisky, Rye, Wheat, Malted two years. Straight Malt Whisky, Barley, Malted Rye or Straight Rye Malt Grain. Whisky. (6) Straight Corn Whis- Fermented mash of 160° or less ...... 125° or less in used or No ...... No. ky. not less than 80% uncharred new oak corn. barrels for a min- imum of 2 years.

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TABLE 1 TO PARAGRAPH (c): TYPES OF WHISKY AND PRODUCTION, STORAGE, AND PROCESSING STANDARDS—Continued

Allowable coloring, Type Source Distillation proof Storage Neutral spirits flavoring, blending permitted materials permitted

(7) Whisky distilled Fermented mash of 160° or less ...... Used oak barrels ...... No ...... Yes. from Bourbon/Rye/ not less than 51%, Wheat/Malt/Rye Malt/ respectively: Corn, [Name of other grain] Rye, Wheat, Malted mash. Barley, Malted Rye Grain [Other grain]. (8) Light Whisky ...... Fermented grain mash More than 160° .. Used or uncharred No ...... Yes. new oak barrels. (9) Blended Light Whis- Fermented grain mash Blend ...... Used or uncharred No ...... Yes. ky (Light Whisky—a but mixed with less new oak barrels. blend). than 20% Straight Whisky on a proof gallon basis. (10) Blended Whisky At least 20% Straight 160° or less ...... Will contain a blend of Maximum of 80% on a Yes. (Whisky—a blend). Whisky on a proof spirits, some stored proof gallon basis. gallon basis plus and some not stored. Whisky or Neutral Spirits alone or in combination. (11) Blended Bourbon At least 51% on a Blend ...... Will contain a blend of Maximum of 49% on a Yes. Whisky, Blended Rye proof gallon basis spirits, some stored proof gallon basis. Whisky, Blended of: Straight Bourbon, and some not stored. Wheat Whisky, Rye, Wheat, Malt, Blended Malt Whis- Rye Malt, or Corn ky, Blended Rye Malt Whisky; the rest Whisky, Blended comprised of Whis- Corn Whisky (or ll ky or Neutral Spirits Whisky—a blend). alone or in combina- tion. (12) Blend of Straight Mixture of Straight 160° or less ...... Will contain a blend of No, except as part of Yes. Whiskies (Blended Whiskies that does spirits which were a flavor. Straight Whiskies). not conform to aged at least two ‘‘Straight Whisky’’. years. (13) Blended Straight Mixture of Straight 160° or less ...... Will contain a blend of No, except as part of Yes. Bourbon Whisky, Whiskies of the spirits which were a flavor. Blended Straight Rye same named type aged at least two Whisky, Blended produced in different years. Straight Malt Whisky, states or produced Blended Straight Rye in the same state Malt Whisky, Blend- but contains fla- ed Straight Corn voring material. Whisky. (14) Spirit Whisky ...... Mixture of Neutral Blend ...... Will contain a blend of Maximum of 95% on a Yes. Spirits and 5% or spirits, some stored proof gallon basis. more on a proof gal- and some not stored. lon basis of: Whisky or Straight Whisky or a combination of both. The Straight Whisky component must be less than 20% on a proof gal- lon basis. (15) White Whisky or Fermented grain Less than 190° ... Storage is not required No ...... Yes. Unaged Whisky mash. When the for ‘‘white whisky’’ (Unaged whisky may mash is made up of and is prohibited for only be used as a at least 51% of a ‘‘unaged whisky.’’ If designation if the single type of grain, white whisky is whisky is not aged.). the product may be stored, oak barrels, further designated with no minimum as White [Name of time requirement, grain] Whisky or and filtered after Unaged [Name of storage to remove grain] Whisky. color.

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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 compli- ance with their laws regulating the manufacture of Irish whisky for home consumption: Provided, That if such product is a mix- ture 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 mix- ture is ‘‘blended Canadian whisky’’ or ‘‘Canadian whisky—a blend’’.

§ 5.144 Gin. Tom’’ or some combination of these four qualification (such as ‘‘peach’’ or (a) The class gin. ‘‘Gin’’ is distilled terms. ‘‘marc’’) may only be used as a designation on labels of grape brandy as spirits made by original distillation from § 5.145 Brandy. mash, or by redistillation of distilled defined in paragraph (c)(1) of this (a) The class brandy. ‘‘Brandy’’ is section. Brandy conforming to one of spirits, or by mixing neutral spirits, with spirits that are distilled from the or over juniper berries and, optionally, the type designations defined in fermented juice, mash, or wine of fruit, paragraphs (c)(1) through (12) of this with or over other aromatics, or with or or from the residue thereof, distilled at section must be designated on the label over extracts derived from infusions, less than 95 percent alcohol by volume with the type name unless a specific percolations, or maceration of such (190° proof) having the taste, aroma, and designation is included in the materials, and includes mixtures of gin characteristics generally attributed to requirements for that type. Brandy, or and neutral spirits. It must derive its the product, and bottled at not less than mixtures thereof, not conforming to any main characteristic flavor from juniper 40 percent alcohol by volume (80° of the types defined in this section must berries and be bottled at not less than 40 proof). ° percent alcohol by volume (80 proof). (b) Label designations. Brandy be designated on the label as ‘‘brandy’’ Gin may be aged in oak containers. conforming to one of the type followed immediately by a truthful and (b) Distilled gin. Gin made exclusively designations must be designated with adequate statement of composition. by original distillation or by the type name or specific designation (c) Types. Paragraphs (c)(1) through redistillation may be further designated specified in the requirements for that (12) of this section set out the types of as ‘‘distilled,’’ ‘‘Dry,’’ ‘‘London,’’ ‘‘Old type. The term ‘‘brandy’’ without further 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 per- cent (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 Cognac region of France, which is entitled to be so designated by the (grape) brandy’’. 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 Peru´’’ (or ‘‘Pisco Peru’’), which is Pisco manufactured in Peru in accordance with the laws and regu- lations 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 ‘‘rai- sin 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.’’

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Type Standards

(9) Pomace brandy or Marc Brandy distilled from the skin and pulp of sound, ripe grapes or other fruit, after the withdrawal of the juice or brandy. wine therefrom. Such brandy derived solely from grape components must be designated ‘‘grape pomace bran- dy,’’ ‘‘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 de- rived, 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, regard- less of such fact, be designated ‘‘residue brandy’’, but the use of such designation shall be conclusive, pre- cluding any later change of designation. (11) Neutral brandy ...... Any type of brandy distilled at more than 85% alcohol by volume (170° proof) but less than 95% alcohol by vol- ume. 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 exclu- sive 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 ‘‘sub- standard 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’’.

§ 5.146 Blended applejack. (b) Label designation. The label proof) having the taste, aroma, and (a) The class blended applejack. designation for blended applejack may characteristics generally attributed to be ‘‘blended applejack’’ or ‘‘applejack– rum, and bottled at not less than 40 ‘‘Blended applejack’’ is a mixture a blend.’’ percent alcohol by volume (80° proof); containing at least 20 percent on a proof and also includes mixtures solely of gallon basis of apple brandy (applejack) § 5.147 Rum. such spirits. All rum may be designated that has been stored in oak barrels for (a) The class rum. ‘‘Rum’’ is distilled as ‘‘rum’’ on the label, even if it also not less than two years, and not more spirits that is distilled from the meets the standards for a specific type than 80 percent of neutral spirits on a fermented juice of sugar cane, sugar of rum. proof gallon basis. Blended applejack cane syrup, sugar cane molasses, or (b) Types. Paragraph (b)(1) of this must be bottled at not less than 40 other sugar cane by-products at less section describes a specific type of rum percent alcohol by volume (80° proof). than 95 percent alcohol by volume (190° 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 with- out 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. by volume (190° proof) and bottled at or standard of identity for ‘‘Tequila’’ or (a) The class agave spirits. ‘‘Agave above 40 percent alcohol by volume (80° ‘‘Mezcal’’ may be designated as ‘‘agave spirits’’ are distilled from a fermented proof). Agave spirits may be stored in spirits,’’ or as ‘‘Tequila’’ or ‘‘Mezcal’’, as mash, of which at least 51 percent is wood barrels. Agave spirits may not applicable. derived from plant species in the genus contain added flavoring or coloring (b) Types. Paragraphs (b)(1) and (2) of Agave and up to 49 percent is derived materials, except as specified in § 5.155. this section describe the types of agave from sugar. Agave spirits must be This class also includes mixtures of spirits and the rules for each type. distilled at less than 95 percent alcohol agave spirits. Agave spirits that meet the

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.

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§ 5.149 Absinthe or absinth. accordance with U.S. Food and Drug amount of not less than 21⁄2 percent by (a) The class absinthe. Absinthe is Administration (FDA) regulations and weight of the finished product. distilled spirits distilled at less than 95 standards. Designations on labels may be ‘‘Cordial’’ percent alcohol by volume (190° proof) or ‘‘Liqueur,’’ or, in the alternative, may § 5.150 Cordials and liqueurs. made with wormwood (Artemisia be one of the type designations below. absinthium), anise, and fennel (with or (a) The class cordials and liqueurs. Cordials and liqueurs may not be without other flavoring materials) and Cordials and liqueurs are flavored designated as ‘‘distilled,’’ ‘‘compound,’’ possessing the taste, aroma, and distilled spirits that are made by mixing or ‘‘straight’’. The designation of a characteristics generally attributed to or redistilling distilled spirits with or cordial or liqueur may include the word over fruits, flowers, plants, or pure absinthe. Absinthe may contain added ‘‘dry’’ if sugar is less than 10 percent by juices therefrom, or other natural sugar. When bottled, absinthe must be at weight of the finished product. least 30 percent alcohol by volume (60° flavoring materials, or with extracts of proof). The designations ‘‘absinthe’’ derived from infusions, percolation, or (b) Types. Paragraph (b)(1) through and ‘‘absinth’’ are interchangeable. maceration of such materials, and (12) of this section list definitions and (b) Thujone-free requirement. containing sugar (such as sucrose, standards for optional type Absinthe must be thujone-free in fructose, dextrose, or levulose) in an 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 li- Liqueurs, bottled at not less than 30 percent alcohol by volume, in which not less than 51 percent, on a proof gal- queur (or rye cordial or lon basis, of the distilled spirits used are, respectively, rye or bourbon whisky, straight rye or straight bourbon bourbon cordial). 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. (3) Rock and rye; Rock and Liqueurs, bottled at not less than 24 percent alcohol by volume, in which, in the case of rock and rye and rock bourbon; Rock and bran- and bourbon, not less than 51 percent, on a proof gallon basis, of the distilled spirits used are, respectively, rye dy; Rock and rum. 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, respec- tively; containing rock candy or sugar syrup, with or without the addition of fruit, fruit juices, or other natural fla- voring 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. (4) Rum liqueur, gin liqueur, Liqueurs, bottled at not less than 30 percent alcohol by volume, in which the distilled spirits used are entirely rum, brandy liqueur. 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. (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 § 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) Cre`me de lll ...... A liqueur/cordial where the blank is filled in with the predominant flavor (for example, Cre`me de menthe is mint flavored liqueur/cordial.) (12) Goldwasser ...... Herb flavored liqueur/cordial and containing gold flakes. See § 5.154(b)(3) for designation rules for goldwasser not made in Germany.

§ 5.151 Flavored spirits. Flavored Bourbon Whisky’’). The base may contain an additional 121⁄2 percent (a) The class flavored spirits. spirit must conform to the standard of by volume of wine, without label ‘‘Flavored spirits’’ are distilled spirits identity for that spirit before the disclosure, if the additional wine is that are spirits conforming to one of the flavoring is added. Base spirits that are derived from the particular fruit standards of identity set forth in a distinctive product of a particular corresponding to the labeled flavor of §§ 5.142 through 5.150 (the ‘‘base place must be manufactured in the product. accordance with the laws and spirits’’) to which have been added § 5.152 Imitations. nonbeverage flavors, wine, or regulations of the country as designated nonalcoholic natural flavoring in the base spirit’s standard of identity. (a) Imitations must bear, as a part of materials, with or without the addition If the finished product contains more the designation thereof, the word of sugar, and bottled at not less than 30 than 21⁄2 percent by volume of wine, the ‘‘imitation’’ and include the following: percent alcohol by volume (60° proof). kinds and percentages by volume of (1) Any class or type of distilled The flavored spirits must be specifically wine must be stated as a part of the spirits to which has been added coloring designated by the single base spirit and designation (whether the wine is added or flavoring material of such nature as one or more of the most predominant directly to the product or whether it is to cause the resultant product to flavors (for example, ‘‘Pineapple first mixed into an intermediate simulate any other class or type of Flavored Tequila’’ or ‘‘Cherry Vanilla product), except that a flavored brandy distilled spirits;

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(2) Any class or type of distilled § 5.154 Rules for geographical become associated with distilled spirits spirits (other than distilled spirits designations. produced in geographic areas other than specialty products as defined in § 5.156) (a) Geographical designations. (1) the region with which the name was to which has been added flavors Geographical names for distilled spirits originally associated may be used to considered to be artificial or imitation. found by the appropriate TTB officer to designate products of any origin, as long (Note: TTB Procedure XXXX–XX, have lost their geographical significance as the designation for such product available on the TTB website (https:// by usage and common knowledge to includes the word ‘‘type’’ or an www.ttb.gov) provides guidance on the such extent that they have become adjective such as ‘‘American’’ that use of the terms ‘‘natural’’ and generic may be used without regard to clearly indicates the true place of ‘‘artificial’’ when referencing flavoring where the product is actually production. TTB has determined that materials); manufactured or bottled. The following the names ‘‘Habanero,’’ ‘‘Sambuca,’’ and (3) Any class or type of distilled names have been found to be generic: ‘‘Goldwasser’’ fall into this category. London dry gin, Geneva (Hollands) gin. spirits (except cordials, liqueurs and § 5.155 Alteration of class and type. specialties marketed under labels which (2) Except as provided in paragraph (a) Definitions—(1) Coloring, do not indicate or imply that a (a)(3) of this section, geographical flavoring, or blending material. For the particular class or type of distilled names that have not become generic purposes of this section, the term spirits was used in the manufacture shall not be applied to distilled spirits ‘‘coloring, flavoring, or blending thereof) to which has been added any made in any place other than the material’’ means a harmless substance whisky essence, brandy essence, rum particular place or region indicated in that is an essential component of the essence, or similar essence or extract the name. Examples are Greek brandy, class or type of distilled spirits to which which simulates or enhances, or is used Jamaica rum, Puerto Rico rum, it is added; or a harmless substance, by the trade or in the particular product Demerara rum, and Andong Soju. such as caramel, straight malt or straight to simulate or enhance, the (3) Geographical names that are not rye malt whiskies, fruit juices, sugar, characteristics of any class or type of generic may be used as the designation infusion of oak chips when approved by distilled spirits; for types of distilled spirits made in a place other than the particular region the Administrator, or wine, that is not (4) Any type of whisky to which indicated by the name if: an essential component part of the beading oil has been added; (i) The appropriate TTB officer has distilled spirits product to which it is (5) Any rum to which neutral spirits determined that the name represents a added but which is customarily or distilled spirits other than rum have type of distilled spirits; employed in the product in accordance been added; (ii) The word ‘‘type,’’ ‘‘style,’’ or some with established trade usage. (6) Any brandy made from distilling other statement indicating the true place (2) Certified color. For purposes of material to which has been added any of production appears as part of the this section, the term ‘‘certified color’’ amount of sugar other than the kind and designation; and means a color additive that is required amount of sugar expressly authorized in (iii) The distilled spirits to which the to undergo batch certification in the production of standard wine; and name is applied conforms to the accordance with part 74 or part 82 of the (7) Any brandy to which neutral standard of identity identified in this Food and Drug Administration spirits or distilled spirits other than subpart. regulations (21 CFR parts 74 and 82). An (iv) The following geographical names brandy have been added, except that example of a certified color is FD&C are recognized as types of distilled this provision shall not apply to any Blue No. 2. spirits in accordance with paragraph product conforming to the standard of (b) Allowable additions. Except as (a)(3)(i) of this section: Eau de Vie de identity for blended applejack. provided in paragraph (c) of this Dantzig (Danziger Goldwasser), Ojen, section, the following may be added to (b) If any of the standards set forth in and Swedish punch. distilled spirits without changing the paragraphs (a)(1) through (7) of this (b) Products without geographical class or type designation: section apply, the ‘‘Imitation’’ class designations that are associated with a (1) Coloring, flavoring, and blending designation must be used in front of the particular geographical region. (1) A materials that are essential components appropriate class designation (for name that is not a geographical name of the class or type of distilled spirits to example, Imitation Whisky). but that is generally perceived as a name which added; § 5.153 Diluted spirits. associated with a particular geographic (2) Coloring, flavoring, and blending place, region, or country may not be materials that are not essential (a) The class diluted spirits. When a used on the label of a product of any component parts of the distilled spirits minimum bottling alcohol content other place, region or country, except as to which added, provided that such (proof) is required for a class or type and otherwise provided in this paragraph. coloring, flavoring, or blending a product would meet one of the classes (2) Designations for distilled spirits materials do not total more than 2 1⁄2 or types prescribed in this subpart listed in this paragraph and that by percent by volume of the finished except that that product does not meet usage and common knowledge have lost product; and the minimum bottling alcohol content, any geographical significance to such an (3) Wine, when added to Canadian the product must be designated with the extent that the appropriate TTB officer whisky in Canada in accordance with applicable class or type designation finds they have become generic may be the laws and regulations of Canada (and statement of composition, if used to designate spirits of any origin. governing the manufacture of Canadian required) immediately preceded by the Examples of names that TTB has found whisky. word ‘‘Diluted’’ in readily legible type at to be generic include: Zubrovka, (c) Exceptions. The addition of the least half as large as the class or type Aquavit, Arrack, Kummel, Amaretto, following will require a redesignation of designation to which it refers. Examples and Ouzo. the class or type of the distilled spirits of such designations are ‘‘Diluted (3) Designations for distilled spirits product to which added: Vodka,’’ ‘‘Diluted Cherry Lees Brandy,’’ listed in this paragraph that the (1) Coloring, flavoring, or blending and ‘‘Diluted flavored whisky.’’ appropriate TTB officer has determined materials that are not essential (b) [Reserved] have, by usage and common knowledge, component parts of the class or type of

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distilled spirits to which they are added, spirits therein conform to such class and used before or during the distillation if such coloring, flavoring, and blending type. process, the statement of composition materials total more than 21⁄2 percent by (b) Products designated in accordance must indicate that the distilled spirits volume of the finished product; with trade and consumer were distilled with the flavoring (2) Any material, other than caramel, understanding. Products may be material (e.g., Vodka Distilled with infusion of oak chips, and sugar, added designated in accordance with trade and Cinnamon). If a single flavoring material to Cognac brandy; consumer understanding without a is used in the production of the distilled (3) Any material whatsoever added to statement of composition if the spirits product, the flavoring material neutral spirits or straight whisky, except appropriate TTB officer has determined may be specifically identified (such as, that vodka may be treated with sugar, in that there is such understanding. ‘‘strawberry flavor,’’ ‘‘strawberry juice,’’ an amount not to exceed two grams per or ‘‘whole strawberries’’) or generally liter, and with citric acid, in an amount § § 5.157–5.165 [Reserved] referenced (such as, ‘‘natural flavor’’). If not to exceed one gram per liter; § 5.166 Statements of composition. two or more flavoring materials are used (4) Certified colors, carmine, or (a) Rules for the statement of in the production of the distilled spirits cochineal extract; composition. When a statement of product, each flavoring material may be (5) Any material that would render specifically identified (such as, ‘‘peach composition is required as part of a the product to which it is added an flavor, kiwi flavor,’’ or ‘‘peach and kiwi designation for a distilled spirits imitation, as defined in § 5.152; or flavors’’) or the characterizing flavor specialty product, the statement must (6) For products that are required to may be specifically identified and the contain all of the information specified be stored in oak barrels in accordance remaining flavoring material(s) may be in this section, as applicable. The with a standard of identity, the storing generally referenced (such as, ‘‘peach statement must specify all harmless of the product in an additional barrel and other natural and artificial coloring, flavoring, and blending made of another type of wood. flavor(s)’’), or all flavors may be materials, except to the extent the (d) Extractions from distilled spirits. generally referenced (such as, ‘‘with materials in the product are part of a The removal of any constituents from a artificial flavors’’). (Note: TTB distilled spirits product to such an distilled spirit that is identified in the Procedure XXXX–XX, available on the extent that the product no longer statement of composition and the TTB website (https://www.ttb.gov), possesses the taste, aroma, and distilled spirit contains the materials provides guidance on the use of the characteristics generally attributed to within the limitations specified in the terms ‘‘natural’’ and ‘‘artificial’’ when that class or type of distilled spirits will standards of identity for the distilled referencing flavoring materials.) alter the class or type of the product, spirit, or the standards set out in (3) Identify added coloring and the resulting product must be § 5.155. If an intermediate product is material(s). The statement of redesignated appropriately. In addition, used to make a distilled spirits specialty composition must disclose the addition in the case of straight whisky, the product, the materials used to make the of coloring material(s), whether added removal of more than 15 percent of the intermediate product should be directly or through flavoring material(s), fixed acids, volatile acids, esters, identified in the statement of if the addition of such material(s) to the soluble solids, or higher alcohols, or the composition as if they were mixed base distilled spirits is not in removal of more than 25 percent of the directly into the distilled spirits without accordance with the standards of soluble color, constitutes an alteration regard to the fact that they were first identity. The coloring material(s) may of the class or type of the product and mixed into an intermediate product. be identified specifically (such as, requires a redesignation of the product. (1) Identify the distilled spirits and ‘‘caramel color,’’ ‘‘FD&C Red #40,’’ (e) Exceptions. Nothing in this section wines. The statement of composition ‘‘annatto,’’ etc.) or as a general has the effect of modifying the standards must clearly identify the distilled spirits statement, such as, ‘‘Contains certified of identity specified in § 5.150 for and wines used in the finished product. color’’, for colors approved under 21 cordials and liqueurs, and in § 5.151 for The statement of composition must CFR part 74, or ‘‘artificially colored,’’ to flavored spirits, or of authorizing any show the required class and/or type indicate the presence of any one or a product defined in § 5.152 to be designation for each distilled spirit (e.g., combination of coloring material(s). designated as other than an imitation. ‘‘vodka,’’ ‘‘whisky,’’ ‘‘rum,’’ ‘‘gin’’). The However, FD&C Yellow No. 5, cochineal statement of composition must identify extract, and carmine require specific § 5.156 Distilled spirits specialty products. any wines used in the product, but the disclosure in accordance with § 5.71 (a) General. Distilled spirits that do statement is not required to specifically and may be disclosed either in the not meet one of the other standards of identify the classes and/or types of the statement of composition or elsewhere, identity specified in this subpart are wines. The statement of composition in accordance with that section, if the distilled spirits specialty products and must list each distilled spirit and wine statement of composition contains only must be designated in accordance with in order of predominance on a proof a general disclosure of added colors. trade and consumer understanding, or, gallon basis. If a product contains Where the standard of identity for that if no such understanding exists, with a multiple classes and/or types of wine base spirit does not require disclosure, distinctive or fanciful name (which may and the statement of composition does caramel used in the production of the be the name of a cocktail) appearing in not specifically identify each one, the base spirit is not required to be the same field of vision as a statement predominance of the wine must be disclosed as part of the statement of of composition. The statement of determined based on its total quantity in composition. However, caramel added composition and the distinctive or the product on a proof gallon basis. in the production of the specialty fanciful name serve as the class and (2) Identify flavoring and blending product must be disclosed. type designation for these products. The material(s) (not including distilled (4) Identify added artificial or other statement of composition must follow spirits and wines) used before, during, non-nutritive sweeteners. The statement the rules found in § 5.166. A product and after distillation. The statement of of composition must disclose any may not bear a designation which composition must disclose flavoring and artificial sweetener that is added to a indicates it contains a class or type of blending materials used in the finished distilled spirits product, whether the distilled spirits unless the distilled product. If the flavoring materials were artificial sweetener is added directly or

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through flavoring material(s). The revoked, superseded, or voluntarily apparatus that accelerates the maturing artificial sweetener may be identified surrendered, and if the formula is of the distilled spirits; specifically by either generic name or revoked, superseded, or voluntarily (g) The steeping or soaking of plant trademarked brand name, or as a general surrendered, any existing qualifying materials, such as fruits, berries, statement (such as ‘‘artificially statements on such approval as to the aromatic herbs, roots, or seeds, in sweetened’’), to indicate the presence of rate of tax or the limited use of alcoholic distilled spirits or wines at a distilled any one or combination of artificial flavors will be made obsolete. spirits plant; sweeteners. However, if aspartame is (d) Change in formula. Any change in (h) The artificial carbonating of used, an additional warning statement is an approved formula requires the filing distilled spirits; required in accordance with § 5.63. of a new Form 5100.51 for approval of (i) In Puerto Rico, the blending of (5) Identify certain ingredients. The the changed formula. After a changed distilled spirits with any liquors statement of composition must disclose formula is approved, the filer must manufactured outside Puerto Rico; any ingredient that is permitted by a surrender the original formula approval (j) The production of gin by: standard of identity, but used in a to the appropriate TTB officer. (1) Redistillation, over juniper berries method or quantity that makes the and other natural aromatics or over the finished product no longer meet the § 5.193 Operations requiring formulas. extracted oils of such materials, of standard of identity. For example, vodka The following operations change the spirits distilled at or above 190 degrees to which more than two grams of sugar class or type of distilled spirits and of proof that are free from impurities, per liter is added is no longer therefore require formula approval including such spirits recovered by designated as vodka. The statement of under § 5.192: redistillation of imperfect gin spirits; or composition may read ‘‘Vodka with (a) The compounding of distilled (2) Mixing gin with other distilled added sugar.’’ spirits through the mixing of a distilled spirits; (b) [Reserved] spirits product with any coloring or (k) The treatment of gin by: flavoring material, wine, or other (1) The addition or abstraction of any Subpart J—Formulas material containing distilled spirits substance or material other than pure water after redistillation in a manner § 5.191 Application. (except for harmless coloring, flavoring or blending materials that do not alter that would change its class and type The requirements of this subpart the class or type pursuant to § 5.155); designation; or apply to the following persons: (b) The manufacture of an (2) The addition of any substance or (a) Proprietors of distilled spirits intermediate product to be used material other than juniper berries or plants qualified as processors under part exclusively in other distilled spirits other natural aromatics or the extracted 19 of this chapter; products on bonded premises; oils of such materials, or the addition of (b) Persons in the Commonwealth of pure water, before or during (c) Any filtering or stabilizing process Puerto Rico who manufacture distilled redistillation, in a manner that would that results in a distilled spirits spirits products for shipment to the change its class and type designation; product’s no longer possessing the taste, United States. However, the filing of a and aroma, and characteristics generally formula for approval by TTB is only (l) The recovery of spirits by attributed to the class or type of distilled required for those products that will be redistillation from distilled spirits spirits before the filtering or stabilizing, shipped to the United States; and products containing other alcoholic or, in the case of straight whisky, that (c) Persons who ship Virgin Islands ingredients and from spirits that have results in the removal of more than 15 distilled spirits products into the United previously been entered for deposit. percent of the fixed acids, volatile acids, States. However, no formula approval is esters, soluble solids, or higher alcohols, required for spirits redistilled into any § 5.192 Formula requirements. or more than 25 percent of the soluble type of neutral spirits other than vodka color; (a) General. An approved formula is or for spirits redistilled at less than 190 required to blend, mix, purify, refine, (d) The mingling of spirits that differ degrees of proof that lack the taste, compound, or treat distilled spirits in a in class or in type of materials from aroma and other characteristics manner that results in a change of class which made; generally attributed to whisky, brandy, or type of the spirits. (e) The mingling of distilled spirits rum, or gin and that are designated as (b) Preparation and submission. In that were stored in charred cooperage ‘‘Spirits’’ preceded or followed by a order to obtain formula approval, a with distilled spirits that were stored in word or phrase descriptive of the person listed in § 5.191 must complete plain or reused cooperage, or the mixing material from which distilled. Such and file TTB Form 5100.51, Formula of distilled spirits that have been treated spirits may not be designated ‘‘Spirits and Process for Domestic and Imported with wood chips with distilled spirits Grain’’ or ‘‘Grain Spirits’’ on any label. Alcohol Beverages, electronically or in not so treated, or the mixing of distilled paper format, in accordance with the spirits that have been subjected to any § 5.194 Adoption of predecessor’s instructions for the form. When a treatment which changes their character formulas. product will be made or processed with distilled spirits not subjected to A successor to a person listed in under the same formula at more than such treatment, unless it is determined § 5.191 may adopt a predecessor’s one location operated by the distiller or by the appropriate TTB officer in each approved formulas by filing an processor, the distiller or processor of these cases that the composition of application with the appropriate TTB must identify on the form each place of the distilled spirits is the same officer. The application must include a production or processing by name and notwithstanding the storage in different list of the formulas for adoption and address, and by permit number, if kinds of cooperage or the treatment of must identify each formula by formula applicable, and must ensure that a copy a portion of the spirits; number, name of product, and date of of the approved formula is maintained (f) Except when authorized for approval. The application must clearly at each location. production or storage operations by part show that the predecessor has (c) Existing approvals. Any approval 19 of this chapter, the use of any authorized the use of the previously of a formula will remain in effect until physical or chemical process or any approved formulas by the successor.

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Subpart K—Standards of Fill and (vi) 50 mL. (e) The external container must be Authorized Container Sizes. (2) Metal cans. For metal containers shrink-wrapped, boxed, or sealed in that have the general shape and design such a manner that the smaller § 5.201 General. of a can, that have a closure that is an containers cannot be easily removed. No person engaged in business as a integral part of the container, and that (f) Each of the smaller containers must distiller, blender, or other producer, or cannot be readily reclosed after be labeled ‘‘NOT FOR INDIVIDUAL as an importer or wholesaler, or as a opening— SALE.’’ bottler or warehouseman and bottler, (i) 355 mL. directly or indirectly, or through an (ii) 200 mL. § 5.205 Distinctive liquor bottle approval. affiliate, may sell or ship or deliver for (iii) 100 mL. (a) General. A bottler or importer of sale or shipment in interstate or foreign (iv) 50 mL. distilled spirits in distinctive liquor commerce, or otherwise introduce in (b) Spirits bottled using outdated bottles may apply for a distinctive interstate or foreign commerce, or standards. Paragraph (a) of this section liquor bottle approval from the receive therein, or remove from customs does not apply to: appropriate TTB officer. The distinctive (1) Imported distilled spirits in the custody for consumption, any distilled liquor bottle approval will provide an original containers in which entered spirits in containers, unless the distilled exemption only from those into customs custody prior to January 1, spirits are bottled in conformity with requirements that are specified in 1980 (or prior to July 1, 1989 in the case §§ 5.202 and 5.203. paragraph (b) of this section. A of distilled spirits imported in 500 mL distinctive liquor bottle is a container § 5.202 Standard liquor containers. containers); or that is not the customary shape and that (2) Imported distilled spirits bottled (a) General. Except as provided in may obscure the net contents of the or packed prior to January 1, 1980 (or paragraph (d) of this section and in distilled spirits. prior to July 1, 1989 in the case of § 5.205, distilled spirits must be bottled (b) Exemptions provided by the distilled spirits in 500 mL containers) in standard liquor containers, as defined distinctive liquor bottle approval. The in this paragraph. A standard liquor and certified as to such in a statement signed by an official duly authorized by distinctive liquor bottle approval issued container is a container that is made, the appropriate foreign government. pursuant to this section will provide formed, and filled in such a way that it that: does not mislead purchasers as regards § 5.204 Aggregate packaging to meet (1) The provisions of § 5.202(b) and its contents. An individual carton or standard of fill requirements. (c) do not apply to the liquor containers other container of a bottle may not be (a) Under the conditions set forth in for which the distinctive liquor bottle so designed as to mislead purchasers as paragraphs (b) through (f) of this approval has been issued; and to the size of the bottle it contains. section, industry members may use (2) The information required to (b) Headspace. A filled liquor aggregate packaging to satisfy a standard appear in the same field of vision container of a capacity of 200 milliliters of fill required under § 5.203 of this pursuant to § 5.63(a) may appear (6.8 fl. oz.) or more is deemed to part. That is, industry members may elsewhere on a distinctive liquor bottle mislead the purchaser if it has a bottle distilled spirits in containers that for which the distinctive liquor bottle headspace in excess of 8 percent of the do not meet a standard of fill, as long approval has been issued, if the design total capacity of the container after as those containers are then packaged of the container precludes the closure. together in a larger container and the presentation of all mandatory (c) Design. Regardless of the entire net contents of the aggregate information in the same field of vision. correctness of the stated net contents, a package meets a standard of fill. For (c) How to apply. A bottler or liquor container is deemed to mislead example, thirty 25-mL containers may importer of distilled spirits in the purchaser if it is made and formed be packaged together to meet the 750 distinctive liquor bottles may apply for in such a way that its actual capacity is mL standard of fill. The industry a distinctive liquor bottle approval as substantially less than the capacity it member must submit the actual external part of the application for a COLA. appears to have upon visual container and a sample of one of the examination under ordinary conditions internal containers to TTB upon request Subpart L—Recordkeeping and of purchase or use. by the appropriate TTB officer as part of Substantiation Requirements (d) Exception for distinctive liquor the COLA review process. (b) The distilled spirits in each of the § 5.211 Recordkeeping requirements— bottles. The provisions of paragraphs (b) certificates. and (c) of this section do not apply to individual internal containers of the liquor bottles for which a distinctive aggregate package must have the same (a) Certificates of label approval liquor bottle approval has been issued alcohol content. (COLAs). Upon request by the pursuant to § 5.205. (c) The external container, as well as appropriate TTB officer, a bottler or each of the individual internal importer must provide evidence that a § 5.203 Standards of fill (container sizes). containers, must be labeled with all of container of distilled spirits is covered (a) Authorized standards of fill. The the mandatory label information by a certificate of label approval (COLA) following metric standards of fill are required by this part and parts 16 and or a certificate of exemption. This authorized for distilled spirits, whether 19 of this chapter; however, an requirement may be satisfied by domestically bottled or imported: appropriate standard of fill is not providing original COLAs, photocopies (1) Containers other than cans. For required for internal containers. or electronic copies of COLAs, or containers other than cans described in (d) The external container must records showing the TTB Identification paragraph (a)(2) of this section— include a net contents statement that number assigned to the approved (i) 1.75 liters. indicates how the aggregate package certificate. TTB may request such (ii) 1.00 liter. equals an authorized standard of fill (for information for a period of five years (iii) 750 mL. example, ‘‘750 mL = 30 containers of 25 from the date that the products covered (iii) 375 mL. mL each’’). Internal containers must by the COLAs were removed from the (iv) 200 mL. include a net contents statement in bottler’s premises or from customs (v) 100 mL. accordance with § 5.68 of this part. custody, as applicable.

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(b) Labels with revisions. Where labels permit provides grounds for the Section where on containers reflect revisions to the revocation or suspension of the permit, contained Current OMB Control No. approved label that have been made in as applicable, as set forth in part 1 of compliance with allowable revisions this chapter. 5.127 ...... 1513–0087. authorized by TTB Form 5100.31 or 5.128 ...... 1513–0087. § 5.223 Compromise. 5.129 ...... 1513–0087. otherwise authorized by TTB, the bottler 5.130 ...... 1513–0087. or importer must, upon request by the Pursuant to 27 U.S.C. 207, the appropriate TTB officer is authorized, 5.192 ...... 1513–0122, appropriate TTB officer, identify the 1513–0046. COLA covering the product if the with respect to any violation of 27 5.193 ...... 1513–0122, product is required to be covered by a U.S.C. 205, to compromise the liability 1513–0046. COLA. TTB may request such arising with respect to such violation 5.194 ...... 1513–0122. information for a period of five years upon payment of a sum not in excess of 5.203 ...... 1513–0064. from the date that the products covered $500 for each offense, to be collected by 5.211 ...... New control number. by the COLAs were removed from the the appropriate TTB officer and to be 5.212 ...... New control number. bottler’s premises or from customs paid into the Treasury as miscellaneous custody, as applicable. receipts. ■ 3. Revise part 7 to read as follows: (c) Other recordkeeping requirements Subpart N—Paperwork Reduction Act under this part. See §§ 5.26, 5.30, and PART 7—LABELING OF MALT 5.192(b) for other recordkeeping § 5.231 OMB control numbers assigned BEVERAGES requirements under this part. under the Paperwork Reduction Act. Subpart A—General Provisions § 5.212 Substantiation requirements. (a) Purpose. This subpart displays the control numbers assigned to information Sec. (a) Application. The substantiation collection requirements in this part by 7.0 Scope. requirements of this section apply to the Office of Management and Budget 7.1 Definitions. any claim made on any label or (OMB) under the Paperwork Reduction 7.2 Territorial extent. container subject to the requirements of 7.3 General requirements and prohibitions Act of 1995, Public Law 104–13. under the FAA Act. this part. (b) Chart. The following chart (b) Reasonable basis in fact. All 7.4 Jurisdictional limits of the FAA Act. identifies each section in this part that 7.5 Ingredients and processes. claims, whether implicit or explicit, contains an information collection must have a reasonable basis in fact. 7.6 Brewery products not covered by this requirement and the OMB control part. Claims that contain express or implied number that is assigned to that 7.7 Other TTB labeling regulations that statements regarding the amount of information collection requirement. apply to malt beverages. support for the claim (such as ‘‘tests 7.8 Malt beverages for export. prove,’’ or ‘‘studies show’’) must have Section where 7.9 Compliance with Federal and State the level of substantiation that is contained Current OMB Control No. requirements. claimed. Any labeling claim that does 7.10 Other related regulations. not have a reasonable basis in fact, or 5.21 ...... 1513–0020. 7.11 Forms. cannot be adequately substantiated 5.22 ...... 1513–0020, 7.12 Delegations of the Administrator. upon the request of the appropriate TTB 1513–0111. Subpart B—Certificates of Label Approval officer, will be considered misleading 5.23 ...... 1513–0020, 1513–0111. Requirements for Malt Beverages Bottled in within the meaning of § 5.122(b)(2). 5.24 ...... 1513–0020, the United States (c) Evidence that claims are 1513–0064, adequately substantiated. The 7.21 Requirement for certificates of label 1513–0122. approval (COLAs) for malt beverages appropriate TTB officer may request 5.25 ...... 1513–0020, bottled in the United States. that bottlers and importers provide 1513–0111, 7.22 Rules regarding certificates of label evidence that labeling claims are 1513–0122. approval (COLAs) for malt beverages adequately substantiated at any time 5.27 ...... 1513–0020, bottled in the United States. within a period of five years from the 1513–0122. 7.23 [Reserved] time the distilled spirits were removed 5.28 ...... 1513–0122. 5.30 ...... New control number. Requirements for Malt Beverages Imported from the bottling premises or from 5.62 ...... 1513–0087. in Containers customs custody, as applicable. 5.63 ...... 1513–0084, 7.24 Certificates of label approval (COLAs) 1513–0087. Subpart M—Penalties and for malt beverages imported in 5.81 ...... 1513–0087. containers. Compromise of Liability 5.82 ...... 1513–0087, 7.25 Rules regarding certificates of label 1513–0121. § 5.221 Criminal penalties. approval (COLAs) for malt beverages 5.83 ...... 1513–0087, imported in containers. A violation of the labeling provisions 1513–0121. of 27 U.S.C. 205(e) is punishable as a 5.84 ...... 1513–0087. Administrative Rules misdemeanor. See 27 U.S.C. 207 for the 5.85 ...... 1513–0087. 7.27 Presenting certificates of label statutory provisions relating to criminal 5.86 ...... 1513–0087. approval (COLAs) to Government penalties, consent decrees, and 5.87 ...... 1513–0087. officials. 5.88 ...... 1513–0087. injunctions. 7.28 Formulas, samples, and 5.89 ...... 1513–0087. documentation. § 5.222 Conditions of basic permit. 5.90 ...... 1513–0087. 7.29 Personalized labels. 5.121 ...... 1513–0087. A basic permit is conditioned upon 5.122 ...... 1513–0087. Subpart C—Alteration of Labels, Relabeling, compliance with the requirements of 27 5.123 ...... 1513–0087. and Adding Information to Containers U.S.C. 205, including the labeling 5.124 ...... 1513–0087. 7.41 Alteration of labels. provisions of this part. A willful 5.125 ...... 1513–0087. 7.42 Authorized relabeling activities by violation of the conditions of a basic 5.126 ...... 1513–0087. brewers and importers.

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7.43 Relabeling activities that require 7.142 Class designations. Certificate of exemption from label separate written authorization from TTB. 7.143 Class and type—special rules. approval. A certificate issued on TTB 7.44 Adding a label or other information to 7.144 Malt beverages fermented or flavored Form 5100.31, which authorizes the a container that identifies the with certain traditional ingredients. bottling of wine or distilled spirits, wholesaler, retailer, or consumer. 7.145 Malt beverages containing less than under the condition that the product 0.5 percent alcohol by volume. Subpart D—Label Standards 7.146 Geographical names. will under no circumstances be sold, 7.51 Firmly affixed requirements. 7.147 Statement of composition. offered for sale, shipped, delivered for 7.52 Legibility and other requirements for shipment, or otherwise introduced by mandatory information on labels. Subparts J–K—Reserved the applicant, directly or indirectly, into 7.53 Type size of mandatory information. Subpart L—Recordkeeping and interstate or foreign commerce. 7.54 Visibility of mandatory information. Substantiation Requirements Certificate of label approval (COLA). 7.55 Language requirements. A certificate issued on TTB Form 7.56 Additional information. 7.211 Recordkeeping requirements– certificates. 5100.31 that authorizes the bottling of Subpart E—Mandatory Label Information 7.212 Substantiation requirements. wine, distilled spirits, and malt 7.61 What constitutes a label for purposes Subpart M—Penalties and Compromise of beverages, or the removal of bottled of mandatory information. Liability wine, distilled spirits, and malt 7.62 Packaging (cartons, coverings, and beverages from customs custody for cases). 7.221 Criminal penalties. introduction into commerce, as long as 7.63 Mandatory label information. 7.222 Conditions of basic permit. 7.223 Compromise. the product bears labels identical to the 7.64 Brand name. labels appearing on the face of the 7.65 Alcohol content. Subpart N—Paperwork Reduction Act 7.66 Name and address for domestically certificate, or labels with changes bottled malt beverages that were wholly 7.231 OMB control numbers assigned under authorized by TTB on the certificate or fermented in the United States. the Paperwork Reduction Act. otherwise. 7.67 Name and address for domestically Authority: 27 U.S.C. 205 and 207. Container. Any can, bottle, box with bottled malt beverages that were bottled an internal bladder, cask, keg, barrel or after importation. § 7.07.0 Scope. other closed receptacle, in any size or 7.68 Name and address for malt beverages This part sets forth requirements that material, that is for use in the sale of that are imported in a container. apply to the labeling and packaging of malt beverages at retail. 7.69 Country of origin. Customs officer. An officer of U.S. 7.70 Net contents. malt beverages in containers, including requirements for label approval and Customs and Border Protection (CBP) or Subpart F—Restricted Labeling Statements rules regarding mandatory, regulated, any agent or other person authorized by 7.81 General. and prohibited labeling statements. law to perform the duties of such an officer. Food Allergen Labeling Subpart A—General Provisions Distinctive or fanciful name. A 7.82 Voluntary disclosure of major food descriptive name or phrase chosen to allergens. § 7.17.1 Definitions. identify a malt beverage product on the 7.83 Petitions for exemption from major When used in this part and on forms label. It does not include a brand name, food allergen labeling. prescribed under this part, the following class or type designation, statement of Production and Other Claims terms have the meaning assigned to composition, or designation known to 7.84 Use of the term ‘‘organic.’’ them in this section, unless the terms the trade or consumers. 7.85 Environmental, sustainability, and appear in a context that requires a FAA Act. The Federal Alcohol similar statements. different meaning. Any other term Administration Act. 7.86 [Reserved]. defined in the Federal Alcohol Gallon. A U.S. gallon of 231 cubic 7.87 Use of the term ‘‘draft.’’ Administration Act (FAA Act) and used inches of malt beverages at 39.1 degrees Subpart G—Prohibited Labeling Practices in this part has the same meaning Fahrenheit (4 degrees Celsius). All other assigned to it by the FAA Act. liquid measures used are subdivisions 7.101 General. Administrator. The Administrator, 7.102 False or untrue statements. of the gallon as defined. 7.103 Obscene or indecent depictions. Alcohol and Tobacco Tax and Trade Interstate or foreign commerce. Bureau, Department of the Treasury. Commerce between any State and any Subpart H—Labeling Practices That Are Appropriate TTB officer. An officer or place outside of that State or commerce Prohibited if They Are Misleading employee of the Alcohol and Tobacco within the District of Columbia or 7.121 General. Tax and Trade Bureau (TTB) authorized commerce between points within the 7.122 Misleading statements or to perform any function relating to the same State but through any place representations. administration or enforcement of this outside of that State. 7.123 Guarantees. part by the current version of TTB Order Keg collar. A disk that is pushed 7.124 Disparaging statements. 7.125 Tests or analyses. 1135.7, Delegation of the down over the keg’s bung or tap cover. 7.126 Depictions of government symbols. Administrator’s Authorities in 27 CFR Malt beverage. A beverage made by 7.127 Depictions simulating government part 7, Labeling of Malt Beverages. the alcoholic fermentation of an stamps or relating to supervision. Bottler. Any brewer or wholesaler infusion or decoction, or combination of 7.128 Claims related to distilled spirits or who places malt beverages in both, in potable brewing water, of wines. containers. malted barley with hops, or their parts, 7.129 Health-related statements. Brand name. The name under which or their products, and with or without 7.130 Appearance of endorsement. a malt beverage or a line of malt other malted cereals, and with or 7.131 The word ‘‘bonded’’ and similar beverages is sold. without the addition of unmalted or terms Certificate holder. The permittee or prepared cereals, other carbohydrates or 7.132 Strength claims. brewer whose name, address, and basic products prepared therefrom, and with Subpart I—Classes and Types of Malt permit number, plant registry number, or without the addition of carbon Beverages or brewer’s notice number appears on dioxide, and with or without other 7.141 Class and type. an approved TTB Form 5100.31. wholesome products suitable for human

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food consumption. See § 7.5 for interstate or foreign commerce, or in question does not violate the laws or standards applying to the use of remove from customs custody, any malt regulations of the State or States into processing methods and flavors in malt beverages in containers unless the malt which the brewer, wholesaler, or beverage production. beverages are bottled in containers and importer is shipping the malt beverages, Net contents. The amount, by volume, the containers are marked, branded, and it does not violate this part. of a malt beverage held in a container. labeled in conformity with the (b) Malt beverages not sold in Person. Any individual, corporation, regulations in this part. interstate or foreign commerce. The partnership, association, joint-stock (d) Labeled in accordance with this regulations in this part do not apply to company, business trust, limited part. In order to be labeled in domestically bottled malt beverages that liability company, or other form of accordance with the regulations in this are not and will not be sold, shipped, business enterprise, including a part, a container of malt beverages must delivered for sale or shipment, or receiver, trustee, or liquidating agent be in compliance with the following otherwise introduced in interstate or and including an officer or employee of requirements: foreign commerce. any agency of a State or political (1) It must bear one or more labels subdivision of a State. meeting the standards for ‘‘labels’’ set § 7.57.5 Ingredients and processes. State. One of the 50 States of the forth in subpart D of this part; (a) Use of nonbeverage flavors and United States, the District of Columbia, (2) One or more of the labels on the other nonbeverage ingredients or the Commonwealth of Puerto Rico. container must include the mandatory containing alcohol. (1) Nonbeverage Tap cover. A cap, usually made of information set forth in subpart E of this flavors and other nonbeverage plastic, that fits over the top of the tap part; ingredients containing alcohol may be (or bung) of a keg. (3) Claims on the label(s), containers, used in producing a malt beverage TTB. The Alcohol and Tobacco Tax and packaging (as defined in § 7.62) (sometimes referred to as a ‘‘flavored and Trade Bureau of the Department of must comply with the rules for malt beverage’’). Except as provided in the Treasury. regulated label statements, as paragraph (a)(2) of this section, no more United States (U.S.). The 50 States, applicable, set forth in subpart F of this than 49 percent of the overall alcohol the District of Columbia, and the part; content (determined without regard to Commonwealth of Puerto Rico. (4) Statements or any other any tolerance otherwise allowed by this representations on any malt beverage § 7.27.2 Territorial extent. part) of the finished product may be label, container, or packaging (as derived from the addition of The provisions of this part apply to defined in §§ 7.81(b) and 7.121(b)) may nonbeverage flavors and other the 50 states, the District of Columbia, not violate the regulations in subparts G nonbeverage ingredients containing and the Commonwealth of Puerto Rico. and H of this part regarding certain alcohol. For example, a finished malt practices on labeling of malt beverages; § 7.37.3 General requirements and beverage that contains 5.0 percent (5) The class and type designation on prohibitions under the FAA Act. alcohol by volume must derive a the label(s), as well as any designation minimum of 2.55 percent alcohol by (a) Certificates of label approval appearing on containers or packaging, (COLAs). Subject to the requirements volume from the fermentation of barley must comply with the standards for malt and other materials and may derive and exceptions set forth in the classes and types set forth in subpart I regulations in subpart B of this part, any not more than 2.45 percent alcohol by of this part; and volume from the addition of brewer or wholesaler who bottles malt (6) The malt beverage must not be nonbeverage flavors and other beverages, and any person who removes adulterated within the meaning of the nonbeverage ingredients containing malt beverages in containers from Federal Food, Drug, and Cosmetic Act. customs custody for sale or any other alcohol. commercial purpose, is required to first § 7.47.4 Jurisdictional limits of the FAA (2) In the case of malt beverages with obtain from TTB a COLA covering the Act. an alcohol content of more than 6 label(s) on each container. (a) Malt beverages sold in interstate or percent by volume (determined without (b) Alteration, mutilation, destruction, foreign commerce—(1) General. The regard to any tolerance otherwise obliteration, or removal of labels. labeling provisions of this part apply to allowed by this part), no more than 1.5 Subject to the requirements and malt beverages sold or shipped or percent of the volume of the malt exceptions set forth in the regulations in delivered for shipment, or otherwise beverage may consist of alcohol derived subpart C of this part, it is unlawful to introduced into or received in any State from added nonbeverage flavors and alter, mutilate, destroy, obliterate, or from any place outside thereof, only to other nonbeverage ingredients remove labels on malt beverage the extent that the laws or regulations of containing alcohol. containers. This prohibition applies to such State impose requirements similar (b) Processing. Malt beverages may be any person, including retailers, holding to the requirements of the regulations in filtered or otherwise processed in order malt beverages for sale in interstate or this part, with respect to the labels and to remove color, taste, aroma, bitterness, foreign commerce or any person holding labeling of malt beverages sold within or other characteristics derived from malt beverages for sale after shipment in that State. fermentation. interstate or foreign commerce. (2) Similar State law. For purposes of (c) Labeling requirements for malt this section, a ‘‘similar’’ State law may § 7.67.6 Brewery products not covered by beverages. Subject to the jurisdictional be found in State laws or regulations this part. limits of the FAA Act, as set forth in that apply specifically to malt beverages Certain fermented products that are § 7.4, it is unlawful for any person or in State laws or regulations that regulated as ‘‘beer’’ under the Internal engaged in business as a brewer, provide general labeling requirements Revenue Code (IRC) do not fall within wholesaler, or importer of malt that are not specific to malt beverages. the definition of a ‘‘malt beverage’’ beverages, directly or indirectly, or In order to be ‘‘similar’’ to the Federal under the FAA Act and thus are not through an affiliate, to sell or ship, or requirements, the State requirements subject to this part. See § 7.7 for related deliver for sale or shipment, or need not be identical to the Federal TTB regulations that may apply to these otherwise introduce or receive in requirements. Nonetheless, if the label products. See §§ 25.11 and 27.11 of this

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chapter for the definition of ‘‘beer’’ applicable Federal and State (7) 21 CFR part 101—Food Labeling; under the IRC. requirements, including but not limited (8) 21 CFR part 110—Current Good (a) Sake´ and similar products. Sake´ to those highlighted in paragraphs (b) Manufacturing Practice in and similar products (including and (c) of this section. Manufacturing, Packing, or Holding products that fall within the definition (b) Ingredient safety. While it remains Human Food; and of ‘‘beer’’ under parts 25 and 27 of this the responsibility of the industry (9) 21 CFR parts 170–189, which chapter) that fall within the definition of member to ensure that any ingredient pertain to food additives and secondary a ‘‘wine’’ under the FAA Act are used in production of malt beverages direct food additives for human covered by the labeling regulations for complies fully with all applicable U.S. consumption. wine in 27 CFR part 4. Food and Drug Administration (FDA) § 7.11 Forms. (b) Other beers not made with both regulations pertaining to the safety of malted barley and hops. The regulations food ingredients and additives, the (a) General. TTB prescribes and in this part do not cover beer products appropriate TTB officer may at any time makes available all forms required by that are not made with both malted request documentation to establish such this part. Any person completing a form barley and hops, or their parts or their compliance. must provide all of the information products, or that do not fall within the (c) Containers. While it remains the required by each form as indicated by definition of a ‘‘malt beverage’’ under responsibility of the industry member to the headings on the form and the § 7.1 for any other reason. Bottlers and ensure that containers are made of instructions for the form. Each form importers of alcohol beverages that do suitable materials that comply with all must be filed in accordance with this not fall within the definition of malt applicable FDA health and safety part and the instructions for the form. beverages, wine, or distilled spirits regulations for the packaging of (b) Electronically filing forms. The under the FAA Act should refer to the beverages for consumption, the forms required by this part can be filed applicable labeling regulations for foods appropriate TTB officer may at any time electronically by using TTB’s online issued by the U.S. Food and Drug request documentation to establish such filing systems: COLAs Online and Administration. See 21 CFR part 101. compliance. Formulas Online. Anyone who intends to use one of these online filing systems § 7.77.7 Other TTB labeling regulations § 7.10 Other related regulations. must first register to use the system by that apply to malt beverages. (a) TTB regulations. Other TTB accessing the TTB website at https:// In addition to the regulations in this regulations that relate to malt beverages www.ttb.gov. part, malt beverages must also comply are listed in paragrpahs (a)(1) through (c) Obtaining paper forms. Forms with the following TTB labeling (9) of this section: required by this part are available for regulations: (1) 27 CFR part 1—Basic Permit printing through the TTB website (a) Health warning statement. Requirements Under the Federal (https://www.ttb.gov) or by mailing a Alcoholic beverages, including malt Alcohol Administration Act, request to the Alcohol and Tobacco Tax beverages, that contain at least one-half Nonindustrial Use of Distilled Spirits and Trade Bureau, National Revenue of one percent alcohol by volume, must and Wine, Bulk Sales and Bottling of Center, 550 Main Street, Room 8002, be labeled with a health warning Distilled Spirits; Cincinnati, OH 45202. (2) 27 CFR part 13—Labeling statement in accordance with the § 7.12 Delegations of the Administrator. Alcoholic Beverage Labeling Act of 1988 Proceedings; (ABLA). The regulations implementing (3) 27 CFR part 14—Advertising of Most of the regulatory authorities of the ABLA are contained in 27 CFR part Alcohol Beverage Products; the Administrator contained in this part 16. (4) 27 CFR part 16—Alcoholic are delegated to ‘‘appropriate TTB (b) Internal Revenue Code Beverage Health Warning Statement; officers.’’ To find out which officers requirements. The labeling and marking (5) 27 CFR part 25—Beer; have been delegated specific authorities, requirements for beer under the Internal (6) 27 CFR part 26—Liquors and see the current version of TTB Order Revenue Code are found in 27 CFR part Articles from Puerto Rico and the Virgin 1135.7, Delegation of the 25, subpart J (for domestic breweries) Islands; Administrator’s Authorities in 27 CFR and 27 CFR part 27, subpart E (for (7) 27 CFR part 27—Importation of part 7, Labeling of Malt Beverages. importers). Distilled Spirits, Wines, and Beer; Copies of this order can be obtained by (8) 27 CFR part 28—Exportation of accessing the TTB website (https:// § 7.87.8 Malt beverages for export. Alcohol; and www.ttb.gov) or by mailing a request to Malt beverages that are exported in (9) 27 CFR part 71—Rules of Practice the Alcohol and Tobacco Tax and Trade bond without payment of tax directly in Permit Proceedings. Bureau, National Revenue Center, 550 from a brewery or from customs custody (b) Other Federal regulations. The Main Street, Room 8002, Cincinnati, OH are not subject to this part. For purposes regulations listed in paragraphs (b)(1) 45202. of this section, direct exportation in through (9) of this section issued by Subpart B—Certificates of Label bond does not include exportation after other Federal agencies also may apply: Approval malt beverages have been removed for (1) 7 CFR part 205—National Organic consumption or sale in the United Program; Requirements for Malt Beverages States, with appropriate tax (2) 19 CFR part 11—Packing and Bottled in the United States determination or payment. Stamping; Marking; (3) 19 CFR part 102—Rules of Origin; § 7.21 Requirement for certificates of label § 7.97.9 Compliance with Federal and (4) 19 CFR part 134—Country of approval (COLAs) for malt beverages State requirements. Origin Marking; bottled in the United States. (a) General. Compliance with the (5) 21 CFR part 1—General (a) COLA requirement. Subject to the requirements of this part relating to the Enforcement Provisions, Subpart I, Prior requirements and exceptions set forth in labeling and bottling of malt beverages Notice of Imported Food; paragraphs (b) and (c) of this section, a does not relieve industry members from (6) 21 CFR parts 70–82, which pertain brewer or wholesaler bottling malt responsibility for complying with other to food and color additives; beverages must obtain a COLA covering

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the malt beverages from TTB prior to applicable requirements of the U.S. customs custody for consumption, bottling the malt beverages or removing Food and Drug Administration with unless the person removing the malt the malt beverages from the premises regard to ingredient safety; or beverages has obtained and is in where they were bottled. (3) Relieve the certificate holder from possession of a COLA covering the malt (b) Malt beverages shipped or sold in liability for violations of the FAA Act, beverages. interstate commerce. Persons bottling the Alcoholic Beverage Labeling Act, (c) Filing requirements. If filing malt beverages (other than malt the Internal Revenue Code, or related electronically, the importer must file beverages in customs custody) for regulations and rulings. with U.S Customs and Border Protection shipment, or delivery for sale or (i) The issuance of a COLA does not (CBP), at the time of filing the customs shipment, into a State (from outside of mean that TTB has verified the accuracy entry, the TTB-assigned identification that State) are required to obtain a of any representations or claims made number of the valid COLA that COLA covering those malt beverages on the label with respect to the product corresponds to the label on the brand or only if the laws or regulations of the in the container. It is the responsibility lot of malt beverages being imported. If State require that all malt beverages sold of the applicant to ensure that all the importer is not filing electronically, or otherwise disposed of in such State information on the application is true the importer must provide a copy of the be labeled in conformity with the and correct, and that all labeling COLA to CBP at the time of entry. In requirements of subparts D through I of representations and claims are truthful, addition, the importer must provide a this part. This requirement applies accurate, and not misleading with copy of the applicable COLA, and proof when the State has either adopted respect to the product in the container. of the certificate holder’s authorization subparts D through I of this part in their (ii) A malt beverage may be if applicable, upon request by the entireties or has adopted requirements mislabeled even when the label is appropriate TTB officer or a customs identical to those set forth in subparts covered by a COLA. For example, if the officer. D through I of this part. In accordance label on the container contains (d) Scope of this section. The COLA with §§ 7.3 and 7.4, malt beverages that representations that are false or requirement imposed by this section are not subject to the COLA misleading when applied to the product applies only to malt beverages that are requirements of this section may still be in the container, the malt beverage is removed for sale or any other subject to the substantive labeling not labeled in accordance with the commercial purpose. See 27 CFR 27.49, provisions of subparts D through I of regulations in this part, even if it is 27.74, and 27.75 for labeling exemptions this part to the extent that the State into covered by a COLA. applicable to certain imported samples which the malt beverages are being (c) When to obtain a COLA. The of malt beverages. shipped has similar State laws or COLA must be obtained prior to (e) Relabeling in customs custody. regulations. bottling. No brewer or wholesaler may Containers of malt beverages in customs (c) Products not shipped or sold in bottle malt beverages or remove malt custody that are required to be covered interstate commerce. Persons bottling beverages from the premises where by a COLA but are not labeled in malt beverages that will not be shipped bottled unless a COLA has been conformity with a COLA must be or delivered for sale or shipment in obtained. relabeled, under the supervision and interstate or foreign commerce are not (d) Application for a COLA. The direction of customs officers, prior to required to obtain a COLA or a bottler may apply for a COLA by their removal from customs custody for certificate of exemption from label submitting an application to TTB on consumption. approval. (Note: A certificate of Form 5100.31, in accordance with the (f) State law. Paragraph (a) through (c) exemption from label approval is a instructions on the form. The bottler of this section apply only if the laws or certificate issued by TTB to cover a may apply for a COLA either regulations of the State in which the wine or distilled spirits product that electronically by accessing TTB’s online malt beverages are withdrawn require will not be sold, offered for sale, system, COLAs Online, at https:// that all malt beverages sold or otherwise shipped, delivered for shipment, or www.ttb.gov, or by submitting the paper disposed of in such State be labeled in otherwise introduced, in interstate or form. For procedures regarding the conformity with the requirements of foreign commerce.) issuance of COLAs, see part 13 of this subparts D through I of this part. A State chapter. requires that malt beverages be labeled § 7.22 Rules regarding certificates of label in conformity with the requirements of approval (COLAs) for malt beverages § 7.23 [Reserved] subparts D through I of this part when bottled in the United States. Requirements for Malt Beverages the State has either adopted subparts D (a) What a COLA authorizes. An Imported in Containers through I of this part in their entireties approved TTB Form 5100.31 authorizes or has adopted requirements identical to the bottling of malt beverages covered § 7.24 Certificates of label approval those set forth in subparts D through I by the COLA, as long as the container (COLAs) for malt beverages imported in in this part. In accordance with §§ 7.3 containers. bears labels identical to the labels and 7.4, malt beverages that are not appearing on the face of the COLA, or (a) Application requirement. Any subject to the COLA requirements of labels with changes authorized by TTB person removing malt beverages in this section may still be subject to the on the COLA or otherwise. The list of containers from customs custody for substantive labeling provisions of allowable changes can be found on the consumption must first apply for and subparts D through I of this part to the TTB website at https://www.ttb.gov. obtain a COLA covering the malt extent that the State into which the malt (b) What a COLA does not do. Among beverages from the appropriate TTB beverages are being shipped has similar other things, the issuance of a COLA officer. State law or regulation. does not: (b) Release of malt beverages from (1) Confer trademark protection; customs custody. Malt beverages, § 7.25 Rules regarding certificates of label (2) Relieve the certificate holder from imported in containers, are not eligible approval (COLAs) for malt beverages its responsibility to ensure that all for release from customs custody for imported in containers. ingredients used in the production of consumption, and no person may (a) What a COLA authorizes. An the malt beverage comply with remove such malt beverages from approved TTB Form 5100.31 authorizes

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the use of the labels covered by the § 7.28 Formulas, samples, and COLA. All of these items on COLA on containers of malt beverages, documentation. personalized labels must comply with as long as the container bears labels (a) Prior to or in conjunction with the the regulations of this part. identical to the labels appearing on the review of an application for a certificate (d) Changes not allowed to face of the COLA, or labels with changes of label approval (COLA) on TTB Form personalized labels. Approval of an authorized by the form or otherwise 5100.31, the appropriate TTB officer application to personalize labels does authorized by TTB. may require a bottler or importer to not authorize the addition of any (b) What a COLA does not do. Among submit a formula, the results of information that discusses either the other things, the issuance of a COLA laboratory testing of the malt beverage, alcohol beverage or characteristics of the does not: or a sample of any malt beverage or alcohol beverage or that is inconsistent (1) Confer trademark protection; ingredients used in producing a malt with or in violation of the provisions of (2) Relieve the certificate holder from beverage. The appropriate TTB officer this part or any other applicable its responsibility to ensure that all also may request such information after provision of law or regulations. ingredients used in the production of the issuance of such COLA or in the malt beverage comply with connection with any malt beverage that Subpart C—Alteration of Labels, applicable requirements of the U.S. is required to be covered by a COLA. A Relabeling, and Adding Information to Food and Drug Administration with formula may be filed electronically by Containers using Formulas Online, or it may be regard to ingredient safety; or § 7.41 Alteration of labels. (3) Relieve the certificate holder from submitted on paper on TTB Form liability for violations of the FAA Act, 5100.51. See § 7.11 for more information (a) Prohibition. It is unlawful for any the Alcoholic Beverage Labeling Act, on forms and Formulas Online. person to alter, mutilate, destroy, the Internal Revenue Code, or related (b) Upon request of the appropriate obliterate or remove any mark, brand, or regulations and rulings. TTB officer, a bottler or importer must label on malt beverages in containers (i) The issuance of a COLA does not submit a full and accurate statement of held for sale in interstate or foreign mean that TTB has verified the accuracy the contents of any container to which commerce, or held for sale after of any representations or claims made labels are to be or have been affixed, as shipment in interstate or foreign on the label with respect to the product well as any other documentation on any commerce, except as authorized by in the container. It is the responsibility issue pertaining to whether the malt § 7.42, § 7.43, or § 7.44, or as otherwise of the applicant to ensure that all beverages are labeled in accordance authorized by Federal law. (b) Authorized relabeling. For information on the application is true with this part. TTB may also request purposes of the relabeling activities and correct and that all labeling such information after the issuance of authorized by this subpart, the term representations and claims are truthful, such a COLA, or in connection with any ‘‘relabel’’ includes the alteration, accurate, and not misleading with malt beverage that is required to be mutilation, destruction, obliteration, or respect to the product in the container. covered by a COLA. removal of any existing mark, brand, or (ii) Malt beverages may be mislabeled § 7.29 Personalized labels. label on the container, as well as the even when the label is covered by a (a) General. Applicants for label addition of a new label (such as a sticker COLA. For example, if the label on the approval may obtain permission from that adds information about the product container contains representations that TTB to make certain changes in order to or information engraved on the are false or misleading when applied to personalize labels without having to container) to the container, and the the product in the container the malt resubmit labels for TTB approval. replacement of a label with a new label beverage is not labeled in accordance Personalized labels may contain a bearing identical information. with the regulations in this part, even if personal message, picture, or other (c) Obligation to comply with other it is covered by a COLA. artwork that is specific to the consumer requirements. Authorization to relabel (c) When to obtain a COLA. The who is purchasing the product. For under this subpart in no way authorizes COLA must be obtained prior to the example, a brewer may offer individual the placement of labels on containers removal of malt beverages in containers or corporate customers labels that that do not accurately reflect the brand, from customs custody for consumption. commemorate an event such as a bottler, identity, or other characteristics (d) Application for a COLA. The wedding or grand opening. of the product; nor does it relieve the person responsible for the importation (b) Application. Any person who person conducting the relabeling of malt beverages must obtain approval intends to offer personalized labels must operations from any obligation to of the labels by submitting an submit a template for the personalized comply the regulations in this part and application to TTB on Form 5100.31. A label with the application for label with State or local law, or to obtain person may apply for a COLA either approval, and must note on the permission from the owner of the brand electronically by accessing TTB’s online application a description of the specific where otherwise required. system, COLAs Online, at TTB’s website personalized information that may (https://www.ttb.gov) or by submitting change. § 7.42 Authorized relabeling activities by the paper form. For procedures (c) Approval of personalized label. If brewers and importers. regarding the issuance of COLAs, see the application complies with the (a) Relabeling at brewery premises. part 13 of this chapter. regulations, TTB will issue a certificate Brewers may relabel domestically Administrative Rules of label approval (COLA) with a bottled malt beverages prior to removal qualification allowing the from, and after return to bond at, the § 7.27 Presenting certificates of label personalization of labels. The brewery premises, with labels covered approval (COLAs) to Government officials. qualification will allow the certificate by a certificate of label approval A certificate holder must present the holder to add or change items on the (COLA,) without obtaining separate original or a paper or electronic copy of personalized label such as salutations, permission from TTB for the relabeling the appropriate COLA upon the request names, graphics, artwork, activity. of any duly authorized representative of congratulatory dates and names, or (b) Relabeling after removal from the United States Government. event dates without applying for a new brewery premises. Brewers may relabel

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domestically bottled malt beverages (c) May not be added to the container surface of the container. Examples of after removal from brewery premises in such a way that it obscures any other acceptable contrasts are: with labels covered by a COLA, without label on the container. (1) Black lettering appearing on a obtaining separate permission from TTB white or cream background; or for the relabeling activity. Subpart D—Label Standards (2) White or cream lettering appearing on a black background. (c) Relabeling in customs custody. § 7.51 Firmly affixed requirements. Under the supervision of U.S. customs (d) Capitalization. Except for the officers, imported malt beverages in (a) General rule. Except as otherwise aspartame statement when required by containers in customs custody may be provided in paragraph (b) of this § 7.63(b)(4), which must appear in all relabeled without obtaining separate section, any label that is not an integral capital letters, mandatory information permission from TTB for the relabeling part of the container must be affixed to may appear in all capital letters, in all activity. Such containers must bear the container in such a way that it lower case letters, or in mixed-case labels covered by a COLA upon their cannot be removed without thorough using both capital and lower-case removal from customs custody for application of water or other solvents. letters. consumption. See § 7.24(b). (b) Exception for keg labels. A label § 7.53 Type size of mandatory information. (d) Relabeling after removal from on a keg with a capacity of 10 gallons All capital and lowercase letters in customs custody. Imported malt or more that is in the form of a keg collar statements of mandatory information on beverages in containers may be or tap cover is not required to be firmly labels must meet the following type size relabeled by the importer thereof after affixed, provided that the name of the requirements. removal from customs custody without bottler of the malt beverage is (a) Minimum type size—(1) obtaining separate permission from TTB permanently or semi-permanently stated Containers of more than one-half pint. for the relabeling activity, as long as the on the keg in the form of embossing, All mandatory information (including labels are covered by a COLA. engraving, stamping, or through the use the alcohol content statement) must be of a sticker or ink jet method. This in script, type, or printing that is at least § 7.43 Relabeling activities that require section in no way affects the separate written authorization from TTB. two millimeters in height. requirements of part 16 of this chapter (2) Containers of one-half pint or less. Any persons holding malt beverages regarding the mandatory health warning All mandatory information (including for sale who need to relabel the statement. the alcohol content statement) must be containers but are not eligible to obtain in script, type, or printing that is at least a COLA to cover the labels that they § 7.52 Legibility and other requirements for mandatory information on labels. one millimeter in height. wish to affix to the containers may (b) Maximum type size for alcohol apply for written permission for the (a) Readily legible. Mandatory content statement—(1) Containers of relabeling of malt beverage containers. information on labels must be readily more than 40 fluid ounces. The alcohol The appropriate TTB officer may permit legible to potential consumers under content statement may not appear in relabeling of malt beverages in ordinary conditions. script, type, or printing that is more containers if the facts show that the (b) Separate and apart. Mandatory than four millimeters in height on relabeling is for the purpose of information on labels, except brand containers of malt beverages of more compliance with the requirements of names, must be separate and apart from than 40 fluid ounces. this part or State law. The written any additional information. This does (2) Containers of 40 fluid ounces or application must include copies of the not preclude the addition of brief less. The alcohol content statement may original and proposed new labels; the optional phrases of additional not appear in script, type, or printing circumstances of the request, including information as part of the class or type that is more than three millimeters in the reason for relabeling; the number of designation (such as ‘‘premium malt height on containers of malt beverages containers to be relabeled; the location beverage’’), the name and address of 40 fluid ounces or less. where the relabeling will take place; and statement (such as ‘‘Proudly brewed and § 7.54 Visibility of mandatory information. the name and address of the person who bottled by ABC Brewing Co. in will be conducting the relabeling Pittsburgh, PA, for over 30 years’’), or Mandatory information on a label operations. other information required by § 7.63(a) must be readily visible and may not be as long as the additional information covered or obscured in whole or in part. § 7.44 Adding a label or other information See § 7.62 for rules regarding packaging to a container that identifies the wholesaler, does not detract from the prominence of of containers (including cartons, retailer, or consumer. the mandatory information. The coverings, and cases). See part 14 of this Any label or other information that statements required by § 7.63(b) may not include additional information. chapter for regulations pertaining to identifies the wholesaler, retailer, or advertising materials. consumer of the malt beverage may be (c) Contrasting background. added to containers (by the addition of Mandatory information must appear in § 7.55 Language requirements. stickers, engraving, stenciling, etc.) a color that contrasts with the (a) General. Mandatory information without prior approval from the background on which it appears, except must appear in the English language, appropriate TTB officer and without that if the net contents or the name and with the exception of the brand name being covered by a certificate of label address are blown into a glass container, and except as provided in paragraphs (c) approval. Such information may be they need not be contrasting. The color and (d) of this section. added before or after the containers are of the container and of the malt (b) Foreign languages. Additional removed from brewery premises or beverages must be taken into account if statements in a foreign language, released from customs custody. The the label is transparent or if mandatory including translations of mandatory information added: label information is etched, engraved, information that appears elsewhere in (a) May not violate the provisions of sandblasted, or otherwise carved into English on the label, are allowed on subparts F, G, and H of this part; the surface of the container or is labels and containers as long as they do (b) May not contain any reference to branded, stenciled, painted, printed, or not in any way conflict with, or the characteristics of the product; and otherwise directly applied on to the contradict, the requirements of this part.

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(c) Malt beverages for consumption in (2) Caps, corks, or other closures the packaging must also display the the Commonwealth of Puerto Rico. unless authorized to bear mandatory same modifying language. Mandatory information may be stated information by the appropriate TTB (3) If the packaging displays a class or solely in the Spanish language on labels officer; and type designation it must be identical to of malt beverages bottled for (3) Foil or heat shrink bottle capsules. the class or type designation appearing consumption within the Commonwealth (c) Materials not firmly affixed to the on the container. For example, if the of Puerto Rico. container. Any materials that packaging displays a class or type (d) Exception for country of origin accompany the container to the designation for a specialty product for statements. The country of origin consumer but are not firmly affixed to which a statement of composition is statement for malt beverages may appear the container, including booklets, required on the container, the packaging in a language other than English when leaflets, and hang tags, are not ‘‘labels’’ must include the statement of allowed by U.S. Customs and Border for purposes of this part. Such materials composition as well. Protection regulations. are instead subject to the advertising (e) Labeling of containers within the regulations in part 14 of this chapter. packaging. The container within the § 7.56 Additional information. packaging is subject to all labeling Information (other than mandatory § 7.62 Packaging (cartons, coverings, and requirements of this part, including information) that is truthful, accurate, cases). mandatory labeling information and specific, and that does not violate (a) General. The term ‘‘packaging’’ requirements, regardless of whether the subpart F, G, or H of this part, may includes any covering, carton, case, packaging bears such information. appear on labels. Such additional carrier, or other packaging of malt information may not conflict with, beverage containers used for sale at § 7.63 Mandatory label information. modify, qualify or restrict mandatory retail, but does not include shipping (a) Mandatory information. Malt information in any manner. cartons or cases that are not intended to beverage containers must bear a label or accompany the container to the labels (as defined in § 7.61(a)) Subpart E—Mandatory Label consumer. containing the following information: Information (b) Prohibition. Any packaging of malt (1) Brand name, in accordance with beverage containers may not contain § 7.64; § 7.61 What constitutes a label for (2) Class, type, or other designation, purposes of mandatory information. any statement, design, device, or graphic, pictorial, or emblematic in accordance with subpart I of this part; (a) Label. Certain information, as (3) Alcohol content, in accordance representation that violates the outlined in § 7.63, must appear on a with § 7.65, for malt beverages that provisions of subpart F, G, or H of this label. When used in this part for contain any alcohol derived from added part. purposes of determining where nonbeverage flavors or other added (c) Requirements for closed mandatory information must appear, the nonbeverage ingredients (other than packaging. If containers are enclosed in term ‘‘label’’ includes: hops extract) containing alcohol; (1) Material affixed to the container, closed packaging, including sealed (4) Name and address of the bottler or whether made of paper, plastic, film, or opaque coverings, cartons, cases, importer (which may be blown, other matter; carriers, or other packaging used for sale embossed, or molded into the container (2) For purposes of the net contents at retail, such packaging must bear all as part of the process of manufacturing statement and the name and address mandatory label information required the container), in accordance with statement only, information blown, on the label under § 7.63. § 7.66, § 7.67, or § 7.68 as applicable; embossed, or molded into the container (1) Packaging is considered closed if and as part of the process of manufacturing the consumer must open, rip, untie, (5) Net contents (which may be the container; unzip, or otherwise manipulate the blown, embossed, or molded into the (3) Information etched, engraved, package to remove the container in container as part of the process of sandblasted, or otherwise carved into order to view any of the mandatory manufacturing the container), in the surface of the container; information. accordance with § 7.70. (4) Information branded, stenciled, (2) Packaging is not considered closed (b) Disclosure of certain ingredients. painted, printed, or otherwise directly if a consumer could view all of the Certain ingredients must be declared on applied on to the surface of the mandatory information on the container a label without the inclusion of any container; and by merely lifting the container up, or if additional information as part of the (5) Information on a keg collar or a tap the packaging is transparent or designed statement as follows: cover of a keg, only if it includes in a way that all of the mandatory (1) FD&C Yellow No. 5. If a malt mandatory information that is not information can be easily read by the beverage contains the coloring material repeated elsewhere on a label firmly consumer without having to open, rip, FD&C Yellow No. 5, the label must affixed to the container and only if it untie, unzip, or otherwise manipulate include a statement to that effect, such meets the requirements of § 7.51. the package. as ‘‘FD&C Yellow No. 5’’ or ‘‘Contains (b) Information appearing elsewhere (d) Packaging that is not closed. The FD&C Yellow No. 5.’’ on the container. Information appearing following requirements apply to (2) Cochineal extract or carmine. If a on the following parts of the container packaging that is not closed. malt beverage contains the color is subject to all of the restrictions and (1) The packaging may display any additive cochineal extract or the color prohibitions set forth in subparts F, G information that is not in conflict with additive carmine, the label must include and H of this part, but will not satisfy the label on the container that is inside a statement to that effect, using the any requirements for mandatory the packaging. respective common or usual name (such information that must appear on labels (2) If the packaging displays a brand as, ‘‘contains cochineal extract’’ or in this part: name, it must display the brand name ‘‘contains carmine’’). This requirement (1) Material affixed to, or information in its entirety. For example, if a brand applies to labels when either of the appearing on, the bottom surface of the name is required to be modified with coloring materials is used in a malt container; additional information on the container, beverage that is removed from bottling

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premises or from customs custody on or (2) For malt beverages containing one (d) Low alcohol and reduced alcohol. after April 16, 2013. half of one percent (0.5 percent) or more The terms ‘‘low alcohol’’ or ‘‘reduced (3) Sulfites. If a malt beverage alcohol by volume, statements of alcohol’’ may be used only on labels of contains 10 or more parts per million of alcohol content must be expressed to malt beverages containing less than 2.5 sulfur dioxide or other sulfiting agent(s) the nearest one-tenth of a percentage percent alcohol by volume. The actual measured as total sulfur dioxide, the point, subject to the tolerance permitted alcohol content may not equal or exceed label must include a statement to that by paragraph (c) of this section. For malt 2.5 percent alcohol by volume, effect. Examples of acceptable beverages containing less than one half regardless of any tolerance permitted by statements are ‘‘Contains sulfites’’ or of one percent alcohol by volume, paragraph (c) of this section. ‘‘Contains (a) sulfiting agent(s)’’ or a alcohol content may be expressed either (e) Non-alcoholic. The term ‘‘non- statement identifying the specific to the nearest one-tenth or the nearest alcoholic’’ may be used on labels of malt sulfiting agent. The alternative terms one-hundredth of a percentage point, beverages only if the statement ‘‘sulphites’’ or ‘‘sulphiting’’ may be and such statements are not subject to ‘‘contains less than 0.5 percent (or used. any tolerance. See paragraph (e) of this 0.5%) alcohol by volume’’ appears (4) Aspartame. If the malt beverage section for the rules applicable to such immediately adjacent to it, in readily contains aspartame, the label must statements. legible printing, and on a completely include the following statement, in (3)(i) The alcohol content statement contrasting background. No tolerances capital letters, separate and apart from must be expressed in one of the are permitted for malt beverages labeled all other information: following formats: as ‘‘non-alcoholic’’ and containing less ‘‘PHENYLKETONURICS: CONTAINS (A) ‘‘Alcohol ll percent by than 0.5 percent alcohol by volume. A PHENYLALANINE.’’ volume’’; malt beverage may not be labeled with ll an alcohol content of 0.0 percent § 7.64 Brand name. (B) ‘‘ percent alcohol by volume’’; or alcohol by volume, unless it is also (a) Requirement. The malt beverage (C) ‘‘Alcohol by volume: ll labeled as ‘‘alcohol free’’ in accordance label must include a brand name. If the percent.’’ with paragraph (f) of this section, and malt beverage is not sold under a brand (ii) Any of the words or symbols may contains no alcohol. name, then the name of the bottler or be enclosed in parentheses and (f) Alcohol free. The term ‘‘alcohol importer, as applicable, appearing in the authorized abbreviations may be used free’’ may be used only on malt name and address statement is treated with or without a period. The alcohol beverages containing no alcohol. No as the brand name. content statement does not have to tolerances are permitted for ‘‘alcohol (b) Misleading brand names. Labels appear with quotation marks. free’’ malt beverages. may not include any misleading brand names. A brand name is misleading if it (4) The statements listed in paragraph § 7.66 Name and address for domestically creates (by itself or in association with (b)(3) of this section must appear as bottled malt beverages that were wholly other printed or graphic matter) any shown, except that the following fermented in the United States. erroneous impression or inference as to abbreviations may be used: Alcohol may (a) General. Domestically bottled malt the age, origin, identity, or other be abbreviated as ‘‘alc’’; percent may be beverages that were wholly fermented in characteristics of the malt beverage. A represented by the percent symbol ‘‘%’’; the United Sates and contain no brand name that would otherwise be alcohol and volume may be separated imported malt beverages must be misleading may be qualified with the by a slash ‘‘/’’ in lieu of the word ‘‘by’’; labeled in accordance with this section. word ‘‘brand’’ or with some other and volume may be abbreviated as (See §§ 7.67 and 7.68 for name and qualification if the appropriate TTB ‘‘vol’’. address requirements applicable to malt officer determines that the qualification (5) Examples. The following are beverages that are not wholly fermented dispels any misleading impression that examples of alcohol content statements in the United States.) might otherwise be created. that comply with the requirements of (b) Mandatory statement. A label on this part: the container must state the name and § 7.65 Alcohol content. (i) ‘‘4.2% alc/vol’’; address of the bottler, in accordance (a) General. Alcohol content and the (ii) ‘‘Alc. 4.0 percent by vol.’’; with the rules set forth in this section. percentage and quantity of the original (iii) ‘‘Alc 4% by vol’’; and (c) Form of address. The address gravity or extract may be stated on any (iv) ‘‘5.9% Alcohol by Volume.’’ consists of the city and State and must malt beverage label. When alcohol (c) Tolerances. Except as provided by be consistent with the information content is stated, it must be stated as paragraph (d) of this section, a tolerance reflected on the brewer’s notice required prescribed in paragraph (b) of this of up to one percentage point will be under part 25 of this chapter. Addresses section. permitted, either above or below the may, but are not required to, include (b) How the alcohol content must be stated alcohol content, for malt additional information such as street expressed. The following rules apply to beverages containing 0.5 percent or names, counties, zip codes, phone both mandatory and optional statements more alcohol by volume. However, any numbers, and website addresses. The of alcohol content. malt beverage that is labeled as postal abbreviation of the State name (1) A statement of alcohol content containing 0.5 percent or more alcohol may be used; for example, California must be expressed as a percentage of by volume may not contain less than 0.5 may be abbreviated as CA. alcohol by volume and not by proof, by percent alcohol by volume, regardless of (d) Optional statements. The bottler a range, or by maximums or minimums. any tolerance. The tolerance provided may, but is not required to, be identified Other truthful, accurate, and specific by this paragraph does not apply in by a phrase describing the function factual representations of alcohol determining compliance with the performed by that person, such as content, such as alcohol by weight, may provisions of § 7.5 regarding the ‘‘bottled by,’’ ‘‘canned by,’’ ‘‘packed be made, as long as they appear together percentage of alcohol derived from by,’’ or ‘‘filled by,’’ followed by the with, and as part of, the statement of added nonbeverage flavors and other name and address of the bottler. If one alcohol content as a percentage of nonbeverage ingredients containing person performs more than one alcohol by volume. alcohol. function, the label may so indicate (for

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example, ‘‘brewed and bottled by XYZ (h) Use of trade names. The name of appropriate phrase) followed by the Brewery.’’) If different functions are the person appearing on the label may name and address of the principal place performed by more than one person, be the trade name or the operating of business in the United States of the statements on the label may not create name, as long as it is identical to a trade person responsible for the importation; the misleading impression that the or operating name appearing on the (3) In the situations set forth in different functions were performed by brewer’s notice, and as long as use of paragraphs (c)(1) and (2) of this section, the same person. The appropriate TTB that name would not create a misleading the address shown on the label may be officer may require specific information impression as to the age, origin, or that of the principal place of business of about the functions performed if identity of the product. For example, if the importer who is also the bottler, necessary to prevent a misleading a brewery authorizes the use of its trade provided that the address shown is a impression on the label. name by another brewery that is not location where bottling takes place. (e) Principal place of business. The under the same ownership, that trade (d) Use of trade names. A trade name bottler’s principal place of business may name may not be used on a label in a may be used if the trade name is listed be shown in lieu of the actual place way that tends to mislead consumers as on the importer’s basic permit and if its where the malt beverage was bottled if to the identity or location of the bottler. use on the label would not create any the address shown is a location where misleading impression as to the age, a bottling operation takes place. The § 7.67 Name and address for domestically origin, or identity of the product. In bottled malt beverages that were bottled addition, the label may, but is not appropriate TTB officer may disapprove after importation. the listing of a principal place of required to, state the name and (a) General. This section applies to business if its use would create a false principal place of business of the domestically bottled malt beverages that or misleading impression as to the foreign manufacturer, bottler, or were bottled after importation. See geographic origin of the malt beverage. shipper. § 7.68 for name and address See 27 CFR 25.141 and 25.142 for requirements applicable to imported § 7.68 Name and address for malt coding requirements applicable in these malt beverages that are imported in a beverages that are imported in a container. circumstances. container. See 19 CFR parts 102 and 134 (a) General. This section applies to (f) Multiple breweries under the same for U.S. Customs and Border Protection malt beverages that are imported in a ownership. If two or more breweries are country of origin marking requirements. container, as defined in § 7.1. See § 7.67 owned or operated by the same person, (b) Malt beverages that were subject to for rules regarding name and address the place where the malt beverage is blending or other production activities requirements applicable to malt bottled within the meaning of paragraph after importation. Malt beverages that beverages that are domestically bottled (a) of this section may be shown in one were subject, after importation, to after importation. See 19 CFR parts 102 of the following two ways: blending or other production may not and 134 for U.S. Customs and Border (1) Listing of where bottled. The place bear an ‘‘imported by’’ statement on the Protection country of origin marking where the malt beverage is bottled may label, but must instead be labeled in requirements. be shown as the only location on the accordance with the rules set forth in (b) Mandatory labeling statement. The label; or § 7.66 with regard to mandatory and label on malt beverages imported in (2) Listing of all brewer’s locations. optional labeling statements. containers, as defined in § 7.1, must The place where the malt beverage is (c) Malt beverages bottled after state the words ‘‘imported by’’ or a bottled may appear in a listing of the importation without blending or other similar appropriate phrase, followed by locations of breweries owned by that production activities. The label on malt the name and address of the importer. person if the place of bottling is not beverages that are bottled without being (1) For purposes of this section, the given less emphasis than any of the subject to blending or other production importer is the holder of the importer’s other locations. See 27 CFR 25.141 and activities in the United States after the basic permit that either makes the 25.142 for coding requirements malt beverages were imported state original Customs entry or is the person applicable in these circumstances. must state the words ‘‘imported by’’ or for whom such entry is made, or the (g) Malt beverages bottled for another a similar appropriate phrase, followed holder of the importer’s basic permit person. (1) If malt beverages are brewed by the name and address of the that is the agent, distributor, or and bottled for another person, the label importer. The label must also state the franchise holder for the particular brand may state, in addition to (but not in lieu words ‘‘bottled by’’ or ‘‘packed by,’’ of imported alcohol beverages and that of) the name and address of the bottler, followed by the name and address of the places the order abroad. the name and address of such other bottler, except that the following (2) The address of the importer must person, immediately preceded by the phrases are acceptable in lieu of the be stated as the city and State of the words ‘‘brewed and bottled for’’ or name and address of the bottler under principal place of business and must be ‘‘bottled for’’ or another similar the circumstances set forth below: consistent with the address reflected on appropriate phrase. Such statements (1) If the malt beverages were bottled the importer’s basic permit. Addresses must clearly indicate the relationship for the person responsible for the may, but are not required to, include between the two persons (for example, importation, the words ‘‘imported and additional information such as street contract brewing). bottled (canned, packed or filled) in the names, counties, zip codes, phone (2) If the same brand of malt beverage United States for’’ (or a similar numbers, and website addresses. The is brewed and bottled by two or more appropriate phrase) followed by the postal abbreviation of the State name breweries that are not under the same name and address of the principal place may be used; for example, California ownership, the label for each brewery of business in the United States of the may be abbreviated as CA. may set forth all the locations where person responsible for the importation; bottling takes place, as long as the label (2) If the malt beverages were bottled § 7.69 Country of origin. uses the actual location (and not the by the person responsible for the (a) Pursuant to U.S. Customs and principal place of business) and as long importation, the words ‘‘imported and Border Protection (CBP) regulations at as the nature of the arrangement is bottled (canned, packed or filled) in the 19 CFR parts 102 and 134, a country of clearly set forth. United States by’’ (or a similar origin statement must appear on the

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container of malt beverages imported in (1) The term ‘‘label’’ includes all derived means the name of the food as containers or bottled in the United labels on malt beverage containers on listed in paragraph (a)(1)(i) of this States after importation. Labeling which mandatory information may section, except that: statements with regard to the country of appear, as set forth in § 7.61(a), as well (i) In the case of a tree nut, it means origin must be consistent with CBP as any other label on the container. the name of the specific type of nut (for regulations. The determination of the (2) The term ‘‘container’’ includes all example, almonds, pecans, or walnuts); country (or countries) of origin, for parts of the malt beverage container, (ii) In the case of Crustacean shellfish, imported malt beverages, as well as for including any part of a malt beverage it means the name of the species of blends of imported malt beverages with container on which mandatory Crustacean shellfish (for example, crab, domestically fermented malt beverages, information may appear, as well as lobster, or shrimp); and must comply with CBP regulations. those parts of the container on which (iii) The names ‘‘egg’’ and ‘‘peanuts,’’ (b) It is the responsibility of the information does not satisfy mandatory as well as the names of the different importer or bottler, as appropriate, to labeling requirements, as set forth in types of tree nuts, may be expressed in ensure compliance with the country of § 7.61(b). either the singular or plural form, and origin marking requirement, both when (3) The term ‘‘packaging’’ includes the names ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’ malt beverages are imported in any carton, case, carrier, individual may be used instead of ‘‘soybeans.’’ containers and when imported malt covering, or other packaging of such (b) Voluntary labeling standards. beverages are subject to bottling, containers used for sale at retail, but Major food allergens used in the blending, or production activities in the does not include shipping cartons or production of a malt beverage product United States. Industry members may cases that are not intended to may, on a voluntary basis, be declared seek a ruling from CBP for a accompany the container to the on a label. However, if any one major determination of the country of origin consumer. food allergen is voluntarily declared, all for their product. (b) Statement or representation. For major food allergens used in production purposes of this subpart, the term of the malt beverage product, including § 7.70 Net contents. ‘‘statement or representation’’ includes major food allergens used as fining or The following rules apply to the net any statement, design, device, or processing agents, must be declared, contents statement required by § 7.63. representation, and includes pictorial or except when covered by a petition for (a) The volume of malt beverage in the graphic designs or representations as exemption approved by the appropriate container must appear on a label as a well as written ones. The term TTB officer under § 7.83. The major net contents statement using the ‘‘statement or representation’’ includes food allergens declaration must consist following measures: explicit and implicit statements and of the word ‘‘Contains’’ followed by a (1) If less than one pint, the net representations. contents must be stated in fluid ounces colon and the name of the food source or fractions of a pint. Food Allergen Labeling from which each major food allergen is (2) If one pint, one quart, or one derived (for example, ‘‘Contains: egg’’). § 7.82 Voluntary disclosure of major food (c) Cross reference. For mandatory gallon, the net contents must be so allergens. stated. labeling requirements applicable to malt (3) If more than one pint, but less than (a) Definitions. For purposes of this beverage products containing FD&C one quart, the net contents must be section, the following terms have the Yellow No. 5, sulfites, aspartame, and stated in fractions of a quart, or in pints meanings indicated. cochineal extract or carmine, see and fluid ounces. (1) Major food allergen means any of § 7.63(b). (4) If more than one quart, but less the following: (i) Milk, egg, fish (for example, bass, § 7.83 Petitions for exemption from major than one gallon, the net contents must food allergen labeling. be stated in fractions of a gallon, or in flounder, or cod), Crustacean shellfish (for example, crab, lobster, or shrimp), (a) Submission of petition. Any quarts, pints, and fluid ounces. person may petition the appropriate (5) If more than one gallon, the net tree nuts (for example, almonds, pecans, TTB officer to exempt a particular contents must be stated in gallons and or walnuts), wheat, peanuts, and product or class of products from the fractions thereof. soybeans; or (b) All fractions must be expressed in (ii) A food ingredient that contains labeling requirements of § 7.82. The their lowest denominations. protein derived from a food specified in burden is on the petitioner to provide (c) Metric measures may be used in paragraph (a)(1)(i) of this section, scientific evidence (as well as the addition to, but not in lieu of, the U.S. except: analytical method used to produce the standard measures and must appear in (A) Any highly refined oil derived evidence) that demonstrates that the the same field of vision. from a food specified in paragraph finished product or class of products, as (a)(1)(i) of this section and any derived by the method specified in the Subpart F—Restricted Labeling ingredient derived from such highly petition, either: Statements refined oil; or (1) Does not cause an allergic (B) A food ingredient that is exempt response that poses a risk to human § 7.81 General. from major food allergen labeling health; or (a) Application. The labeling requirements pursuant to a petition for (2) Does not contain allergenic protein practices, statements, and exemption approved by the Food and derived from one of the foods identified representations in this subpart may be Drug Administration (FDA) under 21 in § 7.82(a)(1)(i), even though a major used on malt beverage labels only when U.S.C. 343(w)(6) or pursuant to a notice food allergen was used in production. used in compliance with this subpart. In submitted to the FDA under 21 U.S.C. (b) Decision on petition. TTB will addition, if any of the practices, 343(w)(7), provided that the food approve or deny a petition for statements, or representations in this ingredient meets the terms or exemption submitted under paragraph subpart are used elsewhere on conditions, if any, specified for that (a) of this section in writing within 180 containers or in packaging, they must exemption. days of receipt of the petition. If TTB comply with the requirements of this (2) Name of the food source from does not provide a written response to subpart. For purposes of this subpart: which each major food allergen is the petitioner within that 180-day

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period, the petition will be deemed disclosure of the information would Subpart G—Prohibited Labeling denied unless an extension of time for prejudice the competitive position of Practices decision is mutually agreed upon by the the interested person; and appropriate TTB officer and the (v) The request must be supported by § 7.101 General. petitioner. TTB may confer with the a signed statement by the interested (a) Application. The prohibitions set Food and Drug Administration (FDA) on person, or by an authorized officer or forth in this subpart apply to any malt petitions for exemption, as appropriate employee of that person, certifying that beverage label, container, or packaging. and as FDA resources permit. TTB may the information in question is a trade For purposes of this subpart: require the submission of product secret or other confidential, commercial, (1) The term ‘‘label’’ includes all samples and other additional or financial information and that the labels on malt beverage containers on information in support of a petition; information is not already in the public which mandatory information may however, unless required by TTB, the domain. appear, as set forth in § 7.61(a), as well submission of samples or additional as any other label on the container; information by the petitioner after Production and Other Claims (2) The term ‘‘container’’ includes all submission of the petition will be § 7.84 Use of the term ‘‘organic.’’ parts of the malt beverage container, including any part of a malt beverage treated as the withdrawal of the initial Use of the term ‘‘organic’’ is permitted petition and the submission of a new container on which mandatory if any such use complies with the information may appear, as well as petition. An approval or denial under United States Department of Agriculture this section will constitute final agency those parts of the container on which (USDA) National Organic Program rules information does not satisfy mandatory action. (7 CFR part 205), as interpreted by the (c) Resubmission of a petition. After a labeling requirements as set forth in USDA. petition for exemption is denied under § 7.61(b); and this section, the petitioner may resubmit § 7.85 Environmental, sustainability, and (3) The term ‘‘packaging’’ includes the petition along with supporting similar statements. any carton, case, carrier, individual materials for reconsideration at any Statements related to environmental covering, or other packaging of such time. TTB will treat this submission as or sustainable agricultural practices, containers used for sale at retail but a new petition. social justice principles, and other does not include shipping cartons or (d) Availability of information—(1) similar statements (such as, ‘‘Produced cases that are not intended to General. TTB will promptly post to its using 100% solar energy’’ or ‘‘Carbon accompany the container to the website (https://www.ttb.gov) all Neutral’’) may appear as long as the consumer. petitions received under this section as statements are truthful, specific and not (b) Statement or representation. For well as TTB’s responses to those misleading. Statements or logos purposes of the practices in this subpart, petitions. Any information submitted in indicating environmental, sustainable the term ‘‘statement or representation’’ support of the petition that is not posted agricultural, or social justice includes any statement, design, device, to the TTB website will be available to certification (such as, ‘‘Biodyvin,’’ or representation, and includes pictorial the public pursuant to the Freedom of ‘‘Salmon-Safe,’’ or ‘‘Fair Trade or graphic designs or representations as Information Act (5 U.S.C. 552), except Certified’’) may appear on malt well as written ones. The term where a request for confidential beverages that are actually certified by ‘‘statement or representation’’ includes treatment is granted under paragraph the appropriate organization. explicit and implicit statements and (d)(2) of this section. representations. (2) Requests for confidential treatment § 7.86 [Reserved] § 7.102 False or untrue statements. of business information. A person who provides trade secrets or other § 7.87 Use of the term ‘‘draft.’’ Malt beverage labels, containers, or commercial or financial information in (a) General. A malt beverage may be packaging may not contain any connection with a petition for labeled with the term ‘‘draft’’ only if it statement or representation that is false exemption under this section may complies with the requirements of or untrue in any particular. paragraph (b)(1), (2), or (3) of this request that TTB give confidential § 7.103 Obscene or indecent depictions. treatment to that information. A failure section. The word ‘‘draft’’ may be spelled ‘‘draft’’ or ‘‘draught.’’ Malt beverage labels, containers, or to request confidential treatment at the packaging may not contain any time the information in question is (b) Requirements. (1) Malt beverages in a container of one gallon or more that statement or representation that is submitted to TTB will constitute a obscene or indecent. waiver of confidential treatment. A dispenses the malt beverages through a request for confidential treatment of tap, spigot, faucet, or similar device may Subpart H—Labeling Practices That information under this section must be described as draft. Are Prohibited if They Are Misleading conform to the following standards: (2) Malt beverages packaged in (i) The request must be in writing; customary bottles or cans may be § 7.121 General. (ii) The request must clearly identify described as draft if they are (a) Application. The labeling practices the information to be kept confidential; unpasteurized and require refrigeration that are prohibited if misleading set (iii) The request must relate to for preservation, or if the beer has been forth in this subpart apply to any malt information that constitutes trade sterile filtered and aseptically filled (but beverage label, container, or packaging. secrets or other confidential, not pasteurized). For purposes of this subpart: commercial, or financial information (3) Malt beverages that have been (1) The term ‘‘label’’ includes all regarding the business transactions of an pasteurized that are packaged in labels on malt beverage containers on interested person, the disclosure of customary bottles or cans may be which mandatory information may which would cause substantial harm to described as ‘‘draft brewed,’’ ‘‘draft beer appear, as set forth in § 7.61(a), as well the competitive position of that person; flavor,’’ ‘‘old time on-tap taste,’’ or with as any other label on the container; (iv) The request must set forth the a similar expression only if the word (2) The term ‘‘container’’ includes all reasons why the information should not ‘‘pasteurized’’ appears conspicuously on parts of the malt beverage container, be disclosed, including the reasons the the label or container. including any part of a malt beverage

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container on which mandatory § 7.124 Disparaging statements. Seals required or specifically authorized information may appear, as well as (a) General. Malt beverage labels, by applicable law or regulations and those parts of the container on which containers, or packaging may not used in accordance with such law or information does not satisfy mandatory contain any false or misleading regulations are not prohibited. labeling requirements, as set forth in statement that explicitly or implicitly § 7.61(b); and § 7.127 Depictions simulating government disparages a competitor’s product. stamps or relating to supervision. (b) Examples. (1) An example of an (3) The term ‘‘packaging’’ includes Malt beverage labels, containers, or any carton, case, carrier, individual explicit statement that falsely disparages a competitor’s product is ‘‘Brand X is packaging may not contain any covering, or other packaging of such statements, images, or designs that containers used for sale at retail but not aged in oak barrels’’ when such statement is not true. mislead consumers to believe that the does not include shipping cartons or malt beverage is manufactured or cases that are not intended to (2) An example of an implicit statement that disparages competitors’ processed under government authority. accompany the container to the Malt beverage labels, containers, or consumer. products in a misleading fashion is ‘‘We do not add arsenic to our malt packaging may not contain images or (b) Statement or representation. For beverage,’’ where such a claim is true designs resembling a stamp of the U.S. purposes of this subpart, the term but it may lead consumers to falsely Government or any State or foreign ‘‘statement or representation’’ includes believe that other brewers do add government, other than stamps any statement, design, device, or arsenic to their malt beverages. authorized or required by this or any representation, and includes pictorial or (c) Truthful and accurate other government, and may not contain graphic designs or representations as comparisons. This section does not statements or indications that the malt well as written ones. The term prevent truthful and accurate beverage is produced, blended, bottled, ‘‘statement or representation’’ includes comparisons between products (such as packed, or sold under, or in accordance explicit and implicit statements and ‘‘Our ale contains more hops than Brand with any municipal, State, Federal, or representations. X’’) or statements of opinion (such as foreign authorization, law, or regulations unless such statement is § 7.122 Misleading statements or ‘‘We think our beer tastes better than representations. any other beer on the market’’). required or specifically authorized by applicable law or regulation. If a (a) General prohibition. Malt beverage § 7.125 Tests or analyses. municipal, State, or Federal labels, containers, or packaging may not Malt beverage labels, containers, or Government permit number is stated on contain any statement or representation, packaging may not contain any malt beverage labels, containers, or irrespective of falsity, that is misleading statement or representation of or packaging, it may not be accompanied to consumers as to the age, origin, relating to analyses, standards, or tests, by any additional statement relating to identity, or other characteristics of the whether or not it is true, that is likely that permit number. malt beverage, or with regard to any to mislead the consumer. An example of other material factor. a misleading statement is ‘‘tested and § 7.128 Claims related to distilled spirits or wines. (b) Ways in which statements or approved by our research laboratories’’ (a) General. Except as provided in representations may be misleading. (1) if the testing and approval does not in paragraph (b) of this section, no malt A statement or representation is fact have any significance. beverage labels, containers, or packaging prohibited, irrespective of falsity, if it § 7.126 Depictions of government may contain a statement, design, or directly creates a misleading impression symbols. representation that tends to create a or if it does so indirectly through (a) Representations of the armed false or misleading impression that the ambiguity, omission, inference, or by forces or flags. Malt beverage labels, malt beverage product is a distilled the addition of irrelevant, scientific, or containers, or packaging may not show spirits or wine product, or that it technical matter. For example, an an image of any government’s flag or contains distilled spirits or wine. For otherwise truthful statement may be any representation related to the armed example, the use of the name of a class misleading because of the omission of forces of the United States if the or type designation of a wine or distilled material information, the disclosure of representation, standing alone or spirits product, as set forth in parts 4 which is necessary to prevent the considered together with any additional and 5 of this chapter, is prohibited if the statement from being misleading. language or symbols on the label, use of that name tends to create a false (2) As set forth in § 7.212(b), all creates a false or misleading impression or misleading impression as to the claims, whether implicit or explicit, that the product was endorsed by, made identity of the product. Homophones or must have a reasonable basis in fact. by, used by, or made under the coined words that simulate or imitate a Any claim on malt beverage labels, supervision of the government class or type designation are also containers, or packaging that does not represented by that flag or by the armed prohibited. have a reasonable basis in fact or cannot forces of the United States. This section (b) Exceptions. This section does not be adequately substantiated upon the does not prohibit the use of a flag as part prohibit: request of the appropriate TTB officer is of a claim of American origin or another (1) A truthful and accurate statement considered misleading. country of origin. of alcohol content; (b) Government seals. Malt beverage (2) The use of a brand name of a wine § 7.123 Guarantees. labels, containers, or packaging may not or distilled spirits product as a malt Malt beverage labels, containers, or contain any government seal or other beverage brand name, provided that the packaging may not contain any insignia that is likely to create a false or overall label does not create a statement relating to guarantees if the misleading impression that the product misleading impression as to the identity appropriate TTB officer finds it is likely has been endorsed by, made by, used of the product; to mislead the consumer. However, by, or produced for, under the (3) The use of a cocktail name as a money-back guarantees are not supervision of, or in accordance with brand name or a distinctive or fanciful prohibited. the specification of that government. name of a malt beverage, provided that

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the overall labeling does not present a beverage, and a disease or health-related (B) Includes as part of the health- misleading impression about the condition. related directional statement some other identity of the product; (3) Health-related directional qualifying statement that the (4) The use of truthful and accurate statement means a type of health-related appropriate TTB officer finds is statements about the production of the statement that directs or refers sufficient to dispel any misleading malt beverage as part of a statement of consumers to a third party or other impression conveyed by the health- composition or otherwise, such as ‘‘aged source for information regarding the related directional statement. in whisky barrels,’’ ‘‘fermented with effects on health of malt beverage or grapes,’’ or ‘‘Beer brewed with alcohol consumption. § 7.130 Appearance of endorsement. chardonnay grapes’’ as long as such (b) Rules for malt beverage labels, (a) General. Malt beverage labels, statements do not create a misleading containers, and packaging—(1) Health- containers, or packaging may not impression as to the identity of the related statements. In general, malt include the name, or the simulation or product; beverage labels, containers, or packaging abbreviation of the name, of any living (5) The use of the designation ‘‘barley may not contain any health-related individual of public prominence or an (or wheat or rye) wine ale’’ or ‘‘barley statement that is untrue in any existing private or public organization, (or wheat or rye) style wine ale’’; or particular or tends to create a or any graphic, pictorial, or emblematic (6) The use of terms that simply misleading impression as to the effects representation of the individual or compare malt beverage products to wine on health of alcohol consumption. TTB organization if its use is likely to lead or distilled spirits products without will evaluate such statements on a case- a consumer to falsely believe that the creating a misleading impression as to by-case basis and may require as part of product has been endorsed, made, or the identity of the product. the health-related statement a used by, or produced for, or under the supervision of, or in accordance with § 7.129 Health-related statements. disclaimer or some other qualifying statement to dispel any misleading the specifications of, such individual or (a) Definitions. When used in this organization. This section does not section, the following terms have the impression conveyed by the health- related statement. prohibit the use of such names where meaning indicated: the individual or organization has (1) Health-related statement means (2) Specific health claims. (i) TTB will provided authorization for their use. any statement related to health (other consult with the Food and Drug (b) Documentation. The appropriate than the warning statement required Administration (FDA) as needed on the TTB officer may request documentation under part 16 of this chapter) and use of specific health claims on labels, from the bottler or importer to establish includes statements of a curative or containers, or packaging. If FDA that the person or organization has therapeutic nature that, expressly or by determines that the use of such a claim provided authorization to use the name implication, suggest a relationship is a drug claim that is not in compliance of that person or organization. between the consumption of alcohol, with the requirements of the Federal (c) Disclaimers. Statements or other malt beverages, or any substance found Food, Drug, and Cosmetic Act, TTB will representations do not violate this within the malt beverage, and health not approve the use of that specific section if, taken as a whole, they create benefits or effects on health. The term health claim on the malt beverage label. no misleading impression as to an includes both specific health claims and (ii) TTB will approve the use of a implied endorsement either because of general references to alleged health specific health claim on a malt beverage the context in which they are presented benefits or effects on health associated label only if the claim is truthful and or because of the use of an adequate with the consumption of alcohol, a malt adequately substantiated by scientific or disclaimer. beverage, or any substance found within medical evidence; is sufficiently the malt beverage product, as well as detailed and qualified with respect to § 7.131 The word ‘‘bonded’’ and similar health-related directional statements. the categories of individuals to whom terms. The term also includes statements and the claim applies; adequately discloses Malt beverage labels, containers, or claims that imply that a physical or the health risks associated with both packaging may not contain the words psychological sensation results from moderate and heavier levels of alcohol ‘‘bonded,’’ ‘‘bottled in bond,’’ ‘‘aged in consuming the alcohol beverage consumption; and outlines the bond,’’ ‘‘bonded age,’’ ‘‘bottled under product, as well as statements and categories of individuals for whom any Customs supervision,’’ or other phrases claims of nutritional value (for example, levels of alcohol consumption may containing these or synonymous terms statements of vitamin content). cause health risks. This information that create a misleading impression as to Numerical statements of the calorie, must appear as part of the specific governmental supervision over carbohydrate, protein, and fat content of health claim. production or bottling. the product do not constitute claims of (3) Health-related directional nutritional value. statements. A health-related directional § 7.132 Strength claims. (2) Specific health claim means a type statement is presumed misleading (a) General. For purposes of this of health-related statement that, unless it: section, the term ‘‘strength claim’’ expressly or by implication, (i) Directs consumers in a neutral or means a statement that directly or characterizes the relationship of malt other non-misleading manner to a third indirectly makes a claim about the beverages, alcohol, or any substance party or other source for balanced alcohol content of the product. This found within the malt beverage, to a information regarding the effects on section does not apply to the use of the disease or health-related condition. health of malt beverage or alcohol terms ‘‘low alcohol,’’ ‘‘reduced alcohol,’’ Implied specific health claims include consumption; and ‘‘non-alcoholic,’’ and ‘‘alcohol-free’’ in statements, symbols, vignettes, or other (ii)(A) Includes as part of the health- accordance with § 7.65; to claims about forms of communication that suggest, related directional statement the low alcohol content in general; or to within the context in which they are following disclaimer: ‘‘This statement labeling with an alcohol content presented, that a relationship exists should not encourage you to drink or to statement in accordance with § 7.65. between alcohol, malt beverages, or any increase your alcohol consumption for (b) Prohibition. The use of a strength substance found within the malt health reasons’’; or claim on malt beverage labels,

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containers, or packaging is prohibited if high temperature, possessing the beverages may be designated with the it misleads consumers by implying that characteristics generally attributed to type designation ‘‘black and tan,’’ and products should be purchased or ‘‘ale,’’ ‘‘porter,’’ or ‘‘stout’’ and the class and type designation is the consumed on the basis of higher alcohol produced without the use of coloring or names of the two classes of malt strength. Examples of strength claims flavoring materials (other than those beverages in conjunction with ‘‘black are ‘‘full strength,’’ ‘‘extra strength,’’ recognized in standard brewing and tan’’ (for example, ‘‘Black and Tan, ‘‘high test,’’ and ‘‘high proof.’’ practices) may bear any of these class Stout and Ale’’). designations. (e) Wheat beer. Any ‘‘beer,’’ ‘‘ale,’’ Subpart I—Classes and Types of Malt (c) The name ‘‘Pilsen’’ (or ‘‘Pilsener’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘malt Beverages or ‘‘Pilsner’’) may be used as the class liquor,’’ or other malt beverage made designation for beers produced in the from a fermentable base that consists of § 7.141 Class and type. Czech Republic or the United States at least 25 percent by weight malted (a) Products known to the trade. The without use of the word ‘‘type’’ or a wheat may be designated with the type class of the malt beverage must be stated similar qualifying statement. See designation ‘‘wheat’’ preceding the on the label (see § 7.63). The type of the § 7.106. The name also may be used as applicable class designation. malt beverage may be stated, but is not the class designation for beer produced (f) Rye beer. Any ‘‘beer,’’ ‘‘ale,’’ required to appear on the label. outside of those countries, as long as it ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘malt Statements of class and type must is qualified in accordance with the liquor,’’ or other malt beverage made conform to the designation of the requirements of § 7.146. from a fermentable base that consists of product as known to the trade. All parts at least 25 percent by weight malted rye of the designation must appear together. § 7.143 Class and type—special rules. may be designated with the type (b) Malt beverage specialty products— The following special rules apply to designation ‘‘rye’’ preceding the (1) General. A malt beverage specialty specified class and type designations: applicable class designation. product is a malt beverage that does not (a) Reconstituted malt beverages. Malt (g) Barley wine ale. The term ‘‘barley fall under any of the class designations beverages that have been concentrated (or wheat or rye) wine ale’’ or ‘‘barley set forth in §§ 7.142 through 7.144 and by the removal of water therefrom and (or wheat or rye) wine style ale’’ may be is not known to the trade under a reconstituted by the addition of water used in accordance with trade particular designation, usually because and carbon dioxide must for the understanding. of the addition of ingredients such as purpose of this part be labeled in the (h) Malt beverages aged in barrels—(1) colorings, flavorings, or food materials same manner as malt beverages which General. Label designations for malt or the use of certain types of production have not been concentrated and beverages aged in barrels or with processes where the appropriate TTB reconstituted, except that there must woodchips, spirals, or staves derived officer has not determined that such appear immediately adjacent to, and as from barrels may, but are not required ingredients or processes are generally a part of, the class designation the to, include a description of how the recognized as traditional in the statement ‘‘PRODUCED FROM lll product was aged. Thus, for example, production of a fermented beverage CONCENTRATE’’ (the blank to be filled acceptable designations for a standard designated as ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ in with the appropriate class beer aged in an oak barrel would ‘‘stout,’’ ‘‘lager,’’ or ‘‘malt liquor.’’ designation). All parts of the class include ‘‘beer,’’ ‘‘oak aged beer,’’ and (2) Designation. A malt beverage designation must appear in lettering of ‘‘beer aged in an oak barrel.’’ specialty product must be designated substantially the same size and kind. (2) Barrels previously used in the with a distinctive or fanciful name, However, ice beers, described in production or storage of wine or together with a statement of the paragraph (c) of this section, which are distilled spirits. Malt beverages aged in composition of the product, in produced by the removal of less than 0.5 barrels previously used in the accordance with § 7.147. This statement percent of the volume of the beer in the production or storage of wine or will be considered the class designation form of ice crystals and that retain beer distilled spirits, or with woodchips, for the purposes of this part. All parts character are not considered spirals, or staves derived from barrels of the designation must appear together. concentrated. previously used in the production or (b) Half and half. No product may be storage of wine or distilled spirits, or § 7.142 Class designations. designated with the type designation from woodchips previously used in the The following class designations may ‘‘half and half’’ unless it is in fact aging of distilled spirits or wine may, be used in accordance with this section: composed of equal parts of two classes but are not required to, include a (a) Any malt beverage, as defined in of malt beverages, the names of which description of how the product was § 7.1, may be designated simply as a are conspicuously stated immediately aged. ‘‘malt beverage.’’ adjacent to the designation ‘‘half and (i) Examples of acceptable (b)(1) The class designations ‘‘beer,’’ half.’’ For example, ‘‘Half and Half, designations for a standard beer aged in ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ and Porter and Stout.’’ This does not a wine barrel include ‘‘beer,’’ ‘‘beer aged ‘‘malt liquor’’ may be used to designate preclude the use of terms such as ‘‘half in a wine barrel,’’ and ‘‘wine barrel aged malt beverages that contain at least 0.5 and half’’ as part of a distinctive or beer.’’ percent alcohol by volume and that fanciful name that refers to flavors (ii) Examples of acceptable conform to the trade understanding of added to a malt beverage designated in designations for an ale brewed with those designations. These designations accordance with trade understanding or honey and aged in a bourbon barrel may be preceded or followed by with a statement of composition. include ‘‘honey ale’’ and ‘‘bourbon descriptions of the color of the product (c) Ice beer. Malt beverages barrel aged honey ale’’ but not simply (such as ‘‘amber,’’ ‘‘brown,’’ ‘‘red,’’ or supercooled during the brewing process ‘‘ale’’ or ‘‘bourbon barrel aged ale.’’ ‘‘golden’’) as well as descriptive terms to form ice crystals may be labeled with (3) Misleading designations. such as ‘‘dry,’’ ‘‘export,’’ ‘‘cream,’’ and the type designation ‘‘ice’’ preceding the Designations that create a misleading ‘‘pale.’’ class designation (beer, ale, etc.). impression as to the identity of the (2) No product other than a malt (d) Black and tan. A product product by emphasizing certain words beverage fermented at a comparatively composed of two classes of malt or terms are prohibited. As set forth in

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§ 7.122, malt beverage labels may not as ‘‘Cherry ale,’’ ‘‘Cinnamon ale,’’ or dispel any misleading impression that include misleading representations that ‘‘Nutmeg ale’’). The designation must might otherwise be created in imply that a malt beverage contains distinguish the product from a malt accordance with § 7.64. distilled spirits or wine or is a distilled beverage, beer, ale, porter, stout, lager, (d) References to types and styles. (1) spirits or wine product. Examples of or malt liquor that is not brewed or A geographical name may be used on a designations that would be prohibited flavored with any of these ingredients; label to precede a class designation under this provision are ‘‘bourbon ale,’’ thus, unmodified designations such as where the name refers to a particular ‘‘bourbon-flavored lager,’’ ‘‘Chardonnay ‘‘beer,’’ ‘‘stout,’’ or ‘‘ale’’ would not be type or style of product rather than the lager,’’ or ‘‘lager with whisky flavors.’’ acceptable. geographical origin of the malt beverage, (i) Other designations. Other type (c) Other requirements. All parts of under the following conditions: designations (such as ‘‘milk’’ preceding the designation must appear together (i) The word ‘‘type’’ or ‘‘style’’ the class designation ‘‘stout’’) may be and must be readily legible on a appears immediately adjacent to, and in applied in conformance with trade contrasting background. Designations type size at least half as large as, the understanding. that create a misleading impression as to geographical name (such as ‘‘Irish style the identity of the product by ale’’); or some other statement § 7.144 Malt beverages fermented or indicating the true place of production flavored with certain traditional ingredients. emphasizing certain words or terms are prohibited. appears in the same field of vision as, (a) General. Any malt beverage that and in type size at least half as large as, has been fermented or flavored only § 7.145 Malt beverages containing less the geographical name (such as ‘‘Irish with one or more ingredients (such as than 0.5 percent alcohol by volume. ale—brewed in California’’ or honey or certain fruits) that the (a) Products containing less than one- ‘‘American Vienna lager’’); and appropriate TTB officer has determined half of 1 percent (0.5%) of alcohol by (ii) The malt beverage to which the are generally recognized as traditional volume must bear the class designation name is applied conforms to the type or ingredients in the production of a ‘‘malt beverage,’’ ‘‘cereal beverage,’’ or style so designated. fermented beverage designated as ‘‘near beer.’’ (2) The following are examples of ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ (b) If the designation ‘‘near beer’’ is references to types or styles of malt or ‘‘malt liquor’’ may be labeled in used, both words must appear in the beverages: Dortmund, Dortmunder, accordance with trade understanding same size and style of type, in the same Vienna, Wien, Wiener, Bavarian, following the rules set forth in this color of ink, and on the same Munich, Munchner, Salvator, section. background. Kulmbacher, Wurtzburger, and (1) A list of such traditional (c) No product containing less than California Common. These names of ingredients may be found on the TTB one-half of 1 percent of alcohol by types or styles of malt beverages may be website (https://www.ttb.gov). volume may bear the class designations used in addition to, but not in lieu of, (2) If the malt beverage has also been ‘‘beer,’’ ‘‘lager beer,’’ ‘‘lager,’’ ‘‘ale,’’ a class designation (for example, fermented or flavored with ingredients ‘‘porter,’’ ‘‘stout,’’ or any other class or ‘‘Vienna style Beer,’’ ‘‘Bavarian Stout— that the appropriate TTB officer has not type designation commonly applied to Brewed in the United States,’’ or determined are generally recognized as malt beverages containing one-half of 1 ‘‘California Common Lager—Brewed in traditional ingredients in the production percent or more of alcohol by volume. Michigan’’). of a fermented beverage designated as (3) The words ‘‘type’’ or ‘‘style’’ may § 7.146 Geographical names. ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ also be used to designate malt beverages or ‘‘malt liquor,’’ it is a malt beverage (a) General. Except as provided that are manufactured in the geographic specialty and must be labeled in further in paragraphs (b) through (e) of area indicated by the name (such as accordance with the statement of this section, any geographical name that ‘‘German style Dortmunder beer’’ or composition rules in § 7.147 may be interpreted as designating the ‘‘Vienna beer—an Austrian type of malt (b) Rules for designation. (1) A origin of the malt beverage may not be beverage’’) as long as the label does not designation in accordance with trade used unless it is a truthful create confusion as to the origin of the understanding must identify the base representation as to the origin of the malt beverage. Such products may also product, such as ‘‘malt beverage,’’ malt beverage. be designated without the words ‘‘type’’ ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ (b) Generic names. The appropriate or ‘‘style’’ (for example, ‘‘Dortmunder or ‘‘malt liquor’’ along with a modifier TTB officer may find certain geographic beer’’ or ‘‘Vienna beer’’) for products or explanation that provides the names of types of malt beverages to be that originate in the geographical area consumer with adequate information generic if they have lost their geographic named. about the fruit, honey, or other food significance through use and common (e) Pilsen or Pilsener or Pilsner. The ingredient used in production of the knowledge. Generic names may be used name ‘‘Pilsen’’ (or ‘‘Pilsener’’ or malt beverage. The label may include to designate a malt beverage regardless ‘‘Pilsner’’) has not been recognized as additional information about the of its origin. TTB publishes a list of generic, but it may be used to designate production process (such as ‘‘beer generic names on its website (https:// beers produced in the Czech Republic or fermented with cherry juice’’). www.ttb.gov). The following are the United States without use of the (2) Where more than one exempted examples of names that have been found word ‘‘type’’ or a similar qualifying ingredient is included, a designation in to be generic: India Pale Ale, Scotch ale statement and without an additional accordance with trade understanding (Scottish ale), and Russian Imperial class or type designation. See § 7.102(c). may identify each ingredient (such as Stout (Imperial Russian Stout). ‘‘Ale with cherry juice, cinnamon, and (c) Brand names. A geographical § 7.147 Statement of composition. nutmeg’’), refer to the ingredients by name may be used as part of the brand (a) A statement of composition is category (such as ‘‘Fruit ale,’’ ‘‘Spiced name for a product that does not come required to appear on the label for malt ale,’’ or ‘‘Ale with natural flavors’’), or from the geographical area named in the beverage specialty products, as defined simply include the ingredient or brand as long as the name is qualified in § 7.141(b), which are not known to ingredients that the bottler or importer with the word ‘‘brand’’ or with some the trade under a particular designation. believes best identify the product (such other qualification that is adequate to For example, the addition of flavoring

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materials, colors, or artificial sweeteners a general statement, such as ‘‘Contains bottler’s premises or from customs may change the class and type of the certified color’’ for colors approved custody, as applicable. malt beverage. The statement of under 21 CFR subpart 74 or ‘‘artificially (c) Other recordkeeping requirements composition along with a distinctive or colored’’ to indicate the presence of any under this part. See § 7.26 for other fanciful name serves as the class and one or a combination of coloring recordkeeping requirements under this type designation for these products. material(s). However, FD&C Yellow No. part. (b) When required by this part, a 5, carmine, and cochineal extract statement of composition must contain require specific disclosure in § 7.212 Substantiation requirements. all of the following information, as accordance with § 7.63(b)(1) and (2) and (a) Application. The substantiation applicable: that specific disclosure may appear requirements of this section apply to (1) Identify the base class and/or type either in the statement of composition any claim made on any label or designation. The statement of or elsewhere in accordance with those container subject to the requirements of composition must clearly identify the sections. this part. base class and/or type designation of the (4) Identify added artificial (b) Reasonable basis in fact. All malt beverage product (e.g., ‘‘beer,’’ sweeteners. The statement of claims, whether implicit or explicit, ‘‘lager beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ composition must disclose any artificial must have a reasonable basis in fact. ‘‘stout,’’ or ‘‘malt beverage’’). sweetener that is added to a malt Claims that contain express or implied (2) Identify added flavoring beverage product, whether the artificial statements regarding the amount of material(s) used before, during, and sweetener is added directly or through support for the claim (such as ‘‘tests after fermentation. The statement of flavoring material(s). The artificial prove’’ or ‘‘studies show’’) must have composition must disclose fermentable sweetener may be identified specifically the level of substantiation that is or non-fermentable flavoring materials by either generic name or trademarked claimed. Any labeling claim that does added to the malt beverage base class. brand name, or as a general statement not have a reasonable basis in fact or (i) If the flavoring material is used (such as ‘‘artificially sweetened’’) to cannot be adequately substantiated before or during the fermentation indicate the presence of any one or upon the request of the appropriate TTB process, the statement of composition combination of artificial sweeteners. officer will be considered misleading must indicate that the malt beverage However, if aspartame is used, an within the meaning of § 7.122(b)(2). was fermented or brewed with the additional warning statement is (c) Evidence that claims are flavoring material (such as ‘‘Beer required in accordance with § 7.63(b)(4). adequately substantiated. The Fermented with grapefruit juice’’ or appropriate TTB officer may request ‘‘Grapefruit Ale’’). If the flavoring Subpart J–K—Reserved that bottlers and importers provide material is added after fermentation, the evidence that labeling claims are statement of composition must describe Subpart L—Recordkeeping and adequately substantiated at any time that process, using terms such as Substantiation Requirements within a period of five years from the ‘‘added,’’ ‘‘with,’’ ‘‘infused,’’ or time the malt beverages were removed ‘‘flavored’’ (such as ‘‘Grapefruit-flavored § 7.211 Recordkeeping requirements— ale.’’) certificates. from the bottling premises or from (ii) If a single flavoring material is (a) Certificates of label approval customs custody, as applicable. used in the production of the malt (COLAs). Upon request by the Subpart M—Penalties and beverage product, the flavoring material appropriate TTB officer, a bottler or Compromise of Liability may be specifically identified (such as importer must provide evidence of label ‘‘Ale Fermented with grapefruit juice’’) approval for a label used on a container § 7.221 Criminal penalties. or generally referenced (such as ‘‘Ale of malt beverages that is subject to the A violation of the labeling provisions with natural flavor’’). If two or more COLA requirements of this part. This of 27 U.S.C. 205(e) is punishable as a flavoring materials are used in the requirement may be satisfied by misdemeanor. See 27 U.S.C. 207 for the production of the malt beverage, each providing original COLAs, photocopies, statutory provisions relating to criminal flavoring material may be specifically or electronic copies of COLAs, or penalties, consent decrees, and identified (such as ‘‘lemon juice, kiwi records showing the TTB Identification injunctions. juice’’ or ‘‘lemon and kiwi juice’’) or the number assigned to the approved COLA. characterizing flavoring material may be TTB may request such information for a § 7.222 Conditions of basic permit. specifically identified and the period of five years from the date that A basic permit is conditioned upon remaining flavoring materials may be the products covered by the COLAs compliance with the requirements of 27 generally referenced (such as ‘‘kiwi and were removed from the bottler’s U.S.C. 205, including the labeling other natural and artificial flavor(s)’’), or premises or from customs custody, as provisions of this part. A willful all flavors may be generally referenced applicable. violation of the conditions of a basic (such as ‘‘with artificial flavors’’). (Note: (b) Labels with revisions. Where labels permit provides grounds for the TTB Procedure XXXX–XX, available on on containers reflect revisions to the revocation or suspension of the permit, the TTB website (https://www.ttb.gov), approved label that have been made in as applicable, as set forth in part 1 of provides guidance on the use of the compliance with allowable revisions this chapter. terms ‘‘natural’’ and ‘‘artificial’’ when authorized by TTB Form 5100.31 or referencing flavoring materials.) otherwise authorized by TTB, the bottler § 7.223 Compromise. (3) Identify Added Coloring or importer must, upon request by the Pursuant to 27 U.S.C. 207, the Material(s). The statement of appropriate TTB officer, identify the appropriate TTB officer is authorized, composition must disclose the addition COLA covering the product if the with respect to any violation of 27 of coloring material(s), whether added product is required to be covered by a U.S.C. 205, to compromise the liability directly or through flavoring material(s). COLA. TTB may request such arising with respect to such violation The coloring materials may be identified information for a period of five years upon payment of a sum not in excess of specifically (such as ‘‘caramel color,’’ from the date that the products covered $500 for each offense, to be collected by ‘‘FD&C Red #40,’’ ‘‘annatto,’’ etc.) or as by the COLA were removed from the the appropriate TTB officer and to be

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paid into the Treasury as miscellaneous Subpart B—Rules Related to Specific media. However, the term receipts. Practices in Advertisements ‘‘advertisement’’ does not include: 14.11 Statements and representations in (1) Any label, container, or packaging Subpart N—Paperwork Reduction Act advertisements. that is subject to the provisions of part 14.12 Regulated practices. § 7.231 OMB control numbers assigned 4, 5 or 7 of this chapter; or 14.13 Prohibited practices. (2) Any editorial or other reading under the Paperwork Reduction Act. 14.14 Misleading statements or material (such as a release) in any (a) Purpose. This subpart displays the representations. 14.15 Additional rules for wine. periodical or publication or newspaper, control numbers assigned to information 14.16 Additional rules for distilled spirits. for the publication of which no money collection requirements in this part by 14.17 Additional rules for malt beverages. or valuable consideration or a thing of the Office of Management and Budget value is paid or promised, directly or (OMB) under the Paperwork Reduction Subpart C—Penalties and Compromise of Liability indirectly, by any permittee or brewer, Act of 1995, Public Law 104–13. and which is not written by or at the 14.21 Criminal penalties. direction of a permittee or brewer. (b) Chart. The following chart 14.22 Conditions of basic permit. identifies each section in this part that 14.23 Compromise. Appropriate TTB officer. An officer or contains an information collection employee of the Alcohol and Tobacco requirement and the OMB control Subpart D—Paperwork Reduction Act Tax and Trade Bureau (TTB) authorized number that is assigned to that 14.31 OMB control numbers assigned under to perform any function relating to the information collection requirement. the Paperwork Reduction Act. administration or enforcement of this Authority: 27 U.S.C. 205, unless otherwise part by the current version of TTB Order Section where Current OMB Control No. noted. 1135.14, Delegation of the contained Administrator’s Authorities in 27 CFR § 14.014.0 Applicability. part 14, Advertising of Wine, Distilled 7.21 ...... 1513–0020, 1513–0087. (a) General. Except as otherwise Spirits, and Malt Beverages. 7.22 ...... 1513–0020, 1513–0087, provided in paragraph (b) of this 1513–0111. Consumer Specialty Items. Items that section, the provisions of this part are designed to be carried away by the 7.24 ...... 1513–0020, 1513–0064. prescribe rules under section 105(f) of 7.25 ...... 1513–0020, 1513–0111. consumer, such as nonalcoholic mixers, 7.27 ...... 1513–0020, 1513–0087. the Federal Alcohol Administration Act pouring racks, ash trays, bottle or can 7.28 ...... 1513–0122. for the advertising of wine, distilled openers, cork screws, shopping bags, 7.62 ...... 1513–0087. spirits, and malt beverages. matches, printed recipes, pamphlets, 7.63 ...... 1513–0084, 1513–0087. (b) Malt beverages. The provisions of cards, leaflets, blotters, post cards, 7.66 ...... 1513–0085. this part apply to the advertising of malt pencils, shirts, caps, and visors. 7.67 ...... 1513–0085. beverages intended to be sold or Container. Any can, bottle, box used 7.81 ...... 1513–0087. shipped or delivered for shipment, or to protect an internal bladder, cask, keg, 7.82 ...... 1513–0087, 1513–0121. otherwise introduced into or received in barrel or other closed receptacle, in any 7.83 ...... 1513–0087, 1513–0121. any State from any place outside the size or material, that is for use in the 7.84 ...... 1513–0087. State, only to the extent that the laws or 7.85 ...... 1513–0087. sale of wine, distilled spirits, or malt regulations of such State impose similar beverages at retail. 7.121 ...... 1513–0087. requirements with respect to the 7.122 ...... 1513–0087. Distilled spirits. Ethyl alcohol, advertising of malt beverages sold hydrated oxide of ethyl, spirits of wine, 7.123 ...... 1513–0087. within that State. 7.124 ...... 1513–0087. whisky, rum, brandy, gin, and other 7.125 ...... 1513–0087. Subpart A—General Provisions distilled spirits, including all dilutions 7.126 ...... 1513–0087. and mixtures thereof, for nonindustrial 7.127 ...... 1513–0087. § 14.114.1 Definitions. use. The term ‘‘distilled spirits’’ does 7.128 ...... 1513–0087. Administrator. The Administrator, not include mixtures containing wine, 7.129 ...... 1513–0087. Alcohol and Tobacco Tax and Trade bottled at 48 degrees of proof or less, if 7.130 ...... 1513–0087. the mixture contains more than 50 7.131 ...... 1513–0087. Bureau, Department of the Treasury. 7.132 ...... 1513–0087. Advertisement or Advertising. The percent wine on a proof gallon basis. 7.211 ...... New control number. term ‘‘advertisement’’ or ‘‘advertising’’ The term ‘‘distilled spirits’’ also does 7.212 ...... New control number. includes any written or verbal not include products containing less statement, illustration, or depiction that than 0.5 percent alcohol by volume. is in, or calculated to induce sales in, FAA Act. Federal Alcohol ■ 4. Add part 14 to read as follows: interstate or foreign commerce, or is Administration Act. PART 14—ADVERTISING OF WINE, disseminated by mail, whether it Malt beverage. A beverage made by DISTILLED SPIRITS, AND MALT appears in a newspaper, magazine, trade the alcoholic fermentation of an BEVERAGES booklet, menu, wine card, leaflet, infusion or decoction, or combination of circular, mailer, book insert, catalog, both, in potable brewing water, of Sec. promotional material, sales pamphlet, malted barley with hops, or their parts, 14.0 Applicability. internet or other electronic site or social or their products, and with or without Subpart A—General Provisions network, or any written, printed, other malted cereals, and with or graphic, or other matter (such as hang without the addition of unmalted or 14.1 Definitions. tags) accompanying, but not firmly prepared cereals, other carbohydrates or 14.2 Territorial extent. 14.3 Delegations of the Administrator’s affixed to, the container, representations products prepared therefrom, and with authorities. made on shipping cases, or in any or without the addition of carbon 14.4 General requirements under the billboard, sign, or other outdoor display, dioxide, and with or without other Federal Alcohol Administration Act. public transit card, other periodical wholesome products suitable for human 14.5 Legibility of mandatory information. literature, and publication, or in a radio food consumption. See § 7.5 of this 14.6 Mandatory statements. or television broadcast, or in any other chapter for standards applying to the

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use of processing methods and flavors Street, Room 8002, Cincinnati, OH § 14.514.5 Legibility of mandatory in malt beverage production. 45202. information. Permittee. Any person holding a basic (a) Statements required by this part permit under the FAA Act. § 14.414.4 General requirements under the that appear in any written, printed, FAA Act. Person. Any individual, corporation, electronic, internet, or other graphic partnership, association, joint-stock (a) General. No person engaged in advertisement must be in legible type of company, business trust, limited business as a distiller, brewer, blender, sufficient size and on a contrasting liability company, or other form of or other producer, or as an importer or background so as to be readable under business enterprise, including a wholesaler of distilled spirits, wine or ordinary conditions. receiver, trustee, or liquidating agent, malt beverages, or as a processor, (b) In the case of signs, billboards, and and including an officer or employee of bottler, or warehouseman and bottler of displays that are designed for viewing any agency of a State or political distilled spirits, directly or indirectly or from a distance, the required name and subdivision of a State. through an affiliate, may publish or address, or name and other contact Responsible advertiser. The permittee disseminate or cause to be published or information (such as, telephone number, or brewer responsible for the disseminated by radio or television website, or email), of the responsible publication or broadcast of an broadcast, or in any newspaper, advertiser may appear in lettering or advertisement. periodical, or other publication, or by type size that is smaller than that of the Spirits. See Distilled spirits. any sign or outdoor advertisement, or by other mandatory information, provided State. One of the 50 States of the electronic or internet media, or any that the name and contact information United States, the District of Columbia, other printed or graphic matter, any can be readily ascertained upon closer or the Commonwealth of Puerto Rico. advertisement of wine, distilled spirits, examination of the sign, billboard, or TTB. The Alcohol and Tobacco Tax or malt beverages, if such advertising is display. and Trade Bureau, Department of the in, or is calculated to induce sale in, (c) Information required under this Treasury. interstate or foreign commerce, or is part that appears in an advertisement in United States. The 50 States, the disseminated by mail, unless such any audio-visual medium must be clear District of Columbia, and the advertisement is in conformity with the and conspicuous and understandable to Commonwealth of Puerto Rico. provisions of this part. a consumer viewing or listening to the Wine. Section 117(a) of the Federal advertisement under ordinary (b) Exclusion. The provisions of this Alcohol Administration Act (27 U.S.C. conditions. part do not apply to a retailer or to the 211(a)) defines ‘‘wine’’ as any of the (d) Information required under this publisher of any newspaper, periodical, following products for nonindustrial use part must be presented as being clearly or other publication, or to a radio or that contain not less than 7 percent and part of the advertisement and may not television or internet broadcast, unless not more than 24 percent alcohol by be separated in any manner from other the retailer or publisher or broadcaster volume: parts of the advertisement. is engaged in business as a distiller, (1) Wine as defined in section 610 and (e) If an advertisement covers two or brewer, blender, or other producer, or as section 617 of the Revenue Act of 1918 more products, the information required an importer or wholesaler of wine, (26 U.S.C. 5381–5392); and under this part that differs between the (2) Other alcoholic beverages not so distilled spirits, or malt beverages, or as products must appear in the defined, but made in the manner of a processor, bottler, or warehouseman advertisement separately for each wine, including sparkling and and bottler, of distilled spirits, directly product. carbonated wine, wine made from or indirectly, or through an affiliate. condensed grape must, wine made from (c) Substantiation. The substantiation § 14.614.6 Mandatory statements. other agricultural products than the requirements of this paragraph apply to (a) General. Advertisements of wine, juice of sound, ripe grapes, imitation any claim made on any advertisement distilled spirits, and malt beverages wine, compounds sold as wine, subject to the requirements of this part. must include the following mandatory information. vermouth, cider, perry, and sake´. (1) Reasonable basis in fact. All (1) Responsible advertiser. The claims, whether implicit or explicit, § 14.214.2 Territorial extent. advertisement must display the must have a reasonable basis in fact. responsible advertiser’s name, city, and The provisions of this part apply in Claims that contain express or implied State or the name and other contact the 50 States, the District of Columbia, statements regarding the amount of information (such as, telephone number, and the Commonwealth of Puerto Rico. support for the claim (such as, ‘‘tests website, or email address) where the prove,’’ or ‘‘studies show’’) must have § 14.314.3 Delegations of the responsible advertiser may be contacted. Administrator’s authorities. the level of substantiation that is (2) Class, type, or other designation. Most of the regulatory authorities of claimed. Any advertising claim that An advertisement must contain a the Administrator contained in this part does not have a reasonable basis in fact, statement of the class, type, or other are delegated to ‘‘appropriate TTB or cannot be adequately substantiated designation that applies to the wine, officers.’’ To determine which officers upon the request of the appropriate TTB distilled spirits, or malt beverage, and have been delegated specific authorities, officer, will be considered misleading that is required to appear on the label see the current version of TTB Order within the meaning of § 14.14 (a)(2). of the product under subpart I of part 4, 1135.14, Delegation of the (2) Evidence that claims are 5, or 7 of this chapter. The statement Administrator’s Authorities in 27 CFR adequately substantiated. The must be clear and conspicuous and be part 14, Advertising of Wine, Distilled appropriate TTB officer may request legible in accordance with § 14.5. Spirits, and Malt Beverages. You may that the responsible advertiser provide (3) Exceptions. The following obtain a copy of this order by accessing evidence that advertising claims are exceptions apply to the rules in the TTB website (https://www.ttb.gov) or adequately substantiated at any time paragraphs (a)(1) and (2) of this section: by mailing a request to the Alcohol and within a period of five years from the (i) If an advertisement refers to a Tobacco Tax and Trade Bureau, time the advertisement was last general product line or to all of the National Revenue Center, 550 Main disseminated or published. wine, distilled spirits, or malt beverage

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products of one company, whether by distillation, the advertisement must (1) Taste tests. Taste test results may the brand name common to all the state the name of the commodity from appear in an advertisement comparing products in the line or by the company which the neutral spirits or gin was competitors’ products, provided that: name, the only information required is distilled. The statement of the name of (i) The results are not disparaging, the name, city, and State or the name the commodity must appear in deceptive, or likely to mislead the and other contact information of the substantially the following form: consumer; responsible advertiser in accordance ‘‘Distilled from grain,’’ or ‘‘Distilled (ii) The taste test procedure used must with paragraph (a)(1) of this section. from cane products,’’ or ‘‘Distilled from meet scientifically accepted procedures. However, this exception does not apply fruit.’’ The statement used under this An example of a scientifically accepted when only one type of wine, distilled paragraph must be identical to that on procedure is outlined in the Manual on spirits, or malt beverage product is the label of distilled spirits to which the Sensory Testing Methods, ASTM marketed under the specific brand name advertisement refers. Special Technical Publication 434, advertised; and published by the American Society for (ii) In the case of a consumer specialty Subpart B—Rules Related to Specific Testing and Materials, 1916 Race Street, item (for example, a T-shirt, hat, bumper Practices in Advertisements Philadelphia, Pennsylvania 19103 sticker, or refrigerator magnet), the only § 14.11 Statements and representations in (ASTM, 1968, Library of Congress information required is the company advertisements. Catalog Card Number 68–15545); and name of the responsible advertiser or (a) General. Sections 14.12 through (iii) A statement must appear in the the brand name of the wine, distilled 14.14 specify rules that apply to advertisement providing the name and spirits, or malt beverage product. advertisements for wine, distilled address of the testing administrator. (b) Additional rules for distilled (2) [Reserved] spirits. The rules set forth in this spirits, and malt beverages. Additional paragraph apply to distilled spirits rules that apply only to advertisements § 14.13 Prohibited practices. advertisements and are in addition to for wine, only to advertisements for An advertisement may not contain distilled spirits, or only to the rules specified in paragraph (a) of any of the following: this section. advertisements for malt beverages are (a) Any statement or representation (1) Alcohol content—(i) Mandatory contained in §§ 14.15, 14.16, and 14.17, that is obscene or indecent; statement. The alcohol content for respectively. (b) Any statement or representation (b) Statement or representation distilled spirits must be stated as a that is false or misleading; or defined. For purposes of the rules in this percentage of alcohol by volume in the (c) Any subliminal or other deceptive subpart, the term ‘‘statement or manner set forth in § 5.65 of this technique or device that conveys, or representation’’ includes any statement, chapter. attempts to convey, a message to a design, device, or representation, and (ii) Optional statement. The person by means of images or sounds of includes pictorial or graphic designs or advertisement may also state the alcohol a very brief nature that cannot be representations as well as written ones. content of the distilled spirits product perceived at a normal level of The term ‘‘statement or representation’’ in degrees of proof if that information awareness. appears immediately adjacent to the includes explicit and implicit percent-alcohol-by-volume statement statements and representations. § 14.14 Misleading statements or representations. prescribed in paragraph (b)(1)(i) of this § 14.12 Regulated practices. (a) General prohibition—(1) section. (a) General. The practices, statements, (2) Percentage of neutral spirits and and representations in this section may Misleading statements or name of commodity—(i) Production be used on wine, distilled spirits, and representations. No statement or with neutral spirits. In the case of malt beverage labels only when used in representation, irrespective of falsity, distilled spirits (other than cordials, compliance with this subpart. that is misleading to consumers as to the liqueurs, and specialties) produced by (b) Statements inconsistent with age, origin, identity, or other blending or other processing, if neutral labeling. (1) An advertisement may not characteristics of the wine, distilled spirits were used in the production of contain any statement concerning a spirits, or malt beverage, or with regard the spirits, the advertisement must state brand or lot of the product that is to any other material factor may appear the percentage of neutral spirits so used inconsistent with any statement on an advertisement. and the name of the commodity from appearing on the label. (2) Ways in which statements or which the neutral spirits were distilled. (2) Any label depicted on a container representations may be misleading. (i) A The statement of percentage and the in an advertisement must be covered by statement or representation is name of the commodity must be in a certificate of label approval (COLA) or prohibited, irrespective of falsity, if it substantially the following form: ‘‘ll certificate of exemption from label directly creates a misleading % neutral spirits distilled from ll approval obtained pursuant to part 4, 5, impression, or if it does so indirectly (insert grain, cane products, or fruit as or 7 of this chapter, except that malt through ambiguity, omission, inference, appropriate)’’; or ‘‘ll% neutral spirits beverage labels not required to be or by the addition of irrelevant (vodka) distilled from ll (insert grain, covered by a COLA in accordance with scientific, or technical matter. For cane products, or fruit, as appropriate)’’; the rules in § 7.21 of this chapter may example, an otherwise truthful or ‘‘ll% grain (cane products), (fruit) also appear on advertisements. In all statement may be misleading because of neutral spirits’’, or ‘‘ll% grain cases, the label appearing on an the omission of material information, spirits.’’ The statement used under this advertisement must be identical to that the disclosure of which is necessary to paragraph must be identical to that on appearing on the container. prevent the statement from being the label of distilled spirits to which the (c) Comparative advertising in misleading. advertisement refers. general. Comparative advertising for a (ii) As set forth in § 14.4(c), all claims, (ii) Neutral spirits and gin produced wine, distilled spirits, or malt beverage whether implicit or explicit, must have by continuous distillation. In the case of may not be disparaging of a competitor’s a reasonable basis in fact. Any claim on neutral spirits or in the case of gin product and may not deceive or mislead an advertisement that does not have a produced by a process of continuous the consumer. reasonable basis in fact, or cannot be

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adequately substantiated upon the designation recognized in part 4 or 5 of a flag as part of a claim of American request of the appropriate TTB officer, this chapter is prohibited on a malt origin or another country of origin. is considered misleading. beverage advertisement, if the use of (h) Government seals. Advertisements (b) Disparaging statements. False or that name creates a misleading may not contain any government seal or misleading statements that explicitly or impression as to the identity of the other insignia that is likely to mislead implicitly disparage a competitor’s product. This prohibition includes the the consumer to believe that the product product are prohibited. use of homophones or coined words has been endorsed by, made by, used (1) Examples. (i) An example of an that simulate or imitate a class or type by, or produced for, under the explicit statement that falsely disparages designation. This paragraph does not supervision of, or in accordance with a competitor’s product is ‘‘Brand X is prohibit the following on the specification of that government. not aged in oak barrels,’’ when such advertisements: (i) Health-related statements—(1) statement is not true. (i) A truthful and accurate statement Definitions. When used in this section, (ii) An example of an implicit of alcohol content; the following terms have the meaning statement that disparages competitor’s (ii) The use of a brand name of a wine indicated: products in a misleading fashion is ‘‘We or distilled spirits product as a malt (i) Health-related statement. ‘‘Health- do not add arsenic to our distilled beverage brand name, of a distilled related statement’’ means any statement spirits,’’ when such a claim may lead spirits or malt beverage product as a related to health (other than the health consumers to falsely believe that other wine brand name, or of a wine or malt warning statement required under part distillers do add arsenic to their beverage product as a distilled spirits 16 of this chapter) and includes any distilled spirits. brand name, provided that the overall statement of a curative or therapeutic (2) This paragraph does not prevent advertisement does not create a nature that, expressly or by implication, truthful and accurate comparisons misleading impression about the suggest a relationship between the between products (such as ‘‘Our wine identity of the product; consumption of alcohol, a wine, contains more strawberries than Brand (iii) The use of a wine, distilled distilled spirits, or malt beverage X’’) or statements of opinion (such as spirits, or malt beverage cocktail name product, or any substance found within ‘‘We think our beer tastes better than as a brand name or a distinctive or such a product, and health benefits or any other beer on the market’’). fanciful name of another commodity’s effects on health. The term includes (c) Analyses, standards, or tests. Any product, provided that a statement of both specific health claims and general statement, or representation of or composition, in accordance with part 4, references to alleged health benefits or relating to analyses, standards, or tests, 5, or 7 of this chapter, as appropriate, effects on health associated with the whether or not it is true, that is likely appears in the same field of vision as consumption of alcohol, a wine, to mislead the consumer is prohibited. the brand name or the distinctive or distilled spirits, or malt beverage An example of such a misleading fanciful name and the overall product, or any substance found within statement is ‘‘tested and approved by advertisement does not create a such a product, as well as health-related our research laboratories’’ if the testing misleading impression about the directional statements. The term also and approval does not in fact have any identity of the product; includes statements and claims that significance; (iv) The use of truthful and accurate imply that a physical or psychological (d) Guarantees. Any statement or statements about the production of the sensation results from consuming the representation relating to guarantees is product, as part of a statement of wine, distilled spirits, or malt beverage prohibited if the appropriate TTB officer composition or otherwise, such as product, as well as statements and finds it is likely to mislead the ‘‘finished in whisky barrels,’’ claims of nutritional value (for example, consumer. However, money-back ‘‘fermented with rye,’’ or ‘‘Beer brewed statements of vitamin content). guarantees are not prohibited. with chardonnay grapes,’’ so long as Numerical statements of caloric, (e) Government authority. Any such statements do not create a carbohydrate, protein, and fat content of statement or representation that misleading impression as to the identity the product do not constitute claims of misleads the consumer to believe that of the product; or nutritional value. the wine, distilled spirits, or malt (v) The use of terms that compare a (ii) Specific health claim. ‘‘Specific beverage is produced, blended, bottled, product or products of one commodity health claim’’ means a type of health- packed, or sold under Government to a product or products of a different related statement that, expressly or by authority is prohibited, except that: commodity without creating a implication, characterizes the (1) A municipal, State, or Federal misleading impression as to the identity relationship of alcohol, a wine, distilled permit number may appear in the of the product. spirits, or malt beverage product, or any advertisement, but the permit number (2) When used in this paragraph, substance found within such a product, may not be accompanied by any ‘‘commodity’’ means wine, distilled to a disease or health-related condition. additional statement relating to it; and spirits, or malt beverages. Implied specific health claims include (2) Such a statement may appear in an (g) Representations of the armed statements, symbols, vignettes, or other advertisement for distilled spirits if it forces or flags. Advertisements may not forms of communication that suggest, conforms to the statement permitted in show an image of any government’s flag within the context in which they are subpart E of part 5 of this chapter for or any representation related to the presented, that a relationship exists labels of distilled spirits products. armed forces of the United States if the between alcohol, a wine, distilled spirits (f) Cross-commodity claims. (1) An representation, standing alone or or malt beverage product, or any advertisement may not contain a considered together with any additional substance found within such a product, statement or representation that tends to language or symbols, creates an and a disease or health-related create the false or misleading impression that the product was condition. impression that a product is a different endorsed by, made by, used by, or made (iii) Health-related directional commodity (as defined in paragraph under the supervision of the statement. ‘‘Health-related directional (f)(2) of this section), or that it contains government represented by that flag or statement’’ means a type of health- another commodity. For example, the by the armed forces of the United States. related statement that directs or refers use of the name of a class or type This section does not prohibit the use of consumers to a third party or other

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source for information regarding the addition to the rules that apply to all appear immediately adjacent to the effects on health of alcohol or advertisements as set forth in §§ 14.12 name of the person, company, or brand consumption of wine, distilled spirits, through 14.14. name to which it relates if the or malt beverages. (a) Statements in advertisements. An appropriate TTB officer finds that this is (2) Rules for advertising—(i) Health- advertisement for wine may not contain: necessary in order to prevent confusion related statements. In general, an (1) Any statement of bonded wine as to the person, company, or brand advertisement for a wine, distilled cellar and bonded winery numbers, name to which the establishment date spirits, or malt beverage product may unless stated immediately adjacent to applies. not contain any health-related statement the name and address of the person (e) Statements indicative of origin. An that is untrue in any particular or tends operating the wine cellar or winery. A advertisement for wine may not contain to create a misleading impression as to statement of bonded wine cellar and any statement or representation that the effects on health of alcohol bonded winery numbers may appear in indicates or implies an origin other than consumption. TTB will evaluate such the following form: ‘‘Bonded Wine the true place of origin of the wine, statements on a case-by-case basis and Cellar No. ll,’’ ‘‘Bonded Winery except for brand names of geographical may require as part of the health-related No. ll,’’ ‘‘B.W.C. No. ll,’’ ‘‘B.W. significance, when used in accordance statement a disclaimer or some other No. ll.’’ No additional reference to with § 4.64(c) of this chapter, and semi- qualifying statement to dispel any the statement may be made, and the generic designations, when used in misleading impression conveyed by the statement may not be used in a way that accordance with § 4.174 of this chapter. health-related statement. Such a might give the impression that the wine disclaimer or other qualifying statement has been made or matured under § 14.16 Additional rules for distilled spirits. must appear as prominently as the government supervision or in The rules in this section apply to health-related statement. accordance with government advertisements for distilled spirits (ii) Specific health claims. A specific specifications or standards; or products and are in addition to the rules health claim will not be considered (2) Any statement, design, device, or that apply to all advertisements as set misleading if it is truthful and representation that relates to alcohol forth in §§ 14.12 through 14.14. adequately substantiated by scientific or content or that tends to create the (a) Statements in advertisements. An medical evidence; it is sufficiently impression that a wine is intoxicating or advertisement for a distilled spirits detailed and qualified with respect to has intoxicating qualities, other than a product may not contain: the categories of individuals to whom truthful and accurate statement of (1) The words ‘‘bond,’’ ‘‘bonded,’’ the claim applies; it adequately alcohol content. ‘‘bottled in bond,’’ or ‘‘aged in bond,’’ or discloses the health risks associated (b) Statement of age. Subject to any other phrase containing ‘‘bond’’ or with both moderate and heavier levels paragraph (c) of this section, an ‘‘bonded,’’ unless those words or of alcohol consumption; and it outlines advertisement for wine may not contain phrases appear in the advertisement in the categories of individuals for whom any statement of age or other the same manner and form as prescribed any levels of alcohol consumption may representation relative to age (including in § 5.88 of this chapter for a label for cause health risks. This information words, symbols, or other devices in any the distilled spirits product in question; must appear as part of the specific brand name or mark), except for: (2) A statement regarding multiple health claim and as prominently as the (1) Vintage dates on vintage wine, in distillations, such as ‘‘double distilled’’ specific health claim. accordance with § 4.95 of this chapter; or ’’triple distilled,’’ unless used in (iii) Health-related directional (2) References relating to methods of accordance with the rules in § 5.89 of statements. A health-related directional wine production involving storage or this chapter; or statement is presumed misleading aging which are used for the advertised (3) The word ‘‘pure’’ unless it: unless it— wine; and (i) Refers to a particular ingredient (A) Directs consumers in a neutral or (3) Use of the word ‘‘old’’ as part of used in the production of the distilled other non-misleading manner to a third a brand name. spirits, and is a truthful representation party or other source for balanced (c) Statement of bottling date. For about that ingredient; information regarding the effects on purposes of paragraph (b) of this (ii) Is part of the bona fide name of a health of alcohol or wine, distilled section, a statement of the bottling date permittee or retailer for whom the spirits, or malt beverage consumption; of a wine will not be deemed to be a distilled spirits are bottled; or and representation relative to age, provided (iii) Is part of the bona fide name of (B)(1) Includes as part of the health- that the statement appears in the the permittee who bottled the distilled related directional statement the advertisement without undue emphasis spirits. following disclaimer: ‘‘This statement in the following form: ‘‘Bottled (b) Statements of age. (1) Except at should not encourage you to drink or to in ll’’ (inserting the year in which the provided in paragraph (b)(2) of this increase your alcohol consumption for wine was bottled). section, an advertisement for a distilled health reasons’’; or (d) Miscellaneous date statements. spirits product may not contain any (2) Includes as part of the health- Except in the case of vintage dates and statement, design, or device, directly or related directional statement, and as bottling dates as provided in paragraphs by implication, concerning age or prominently as the health-related (b)(1) and (c) of this section, an maturity of any brand or lot of distilled directional statement, some other advertisement of wine may not bear any spirits, unless a statement of age in qualifying statement that the date unless, in addition to the date and accordance with § 5.73 of this chapter appropriate TTB officer finds is immediately adjacent to the date and in appears on the label of the advertised sufficient to dispel any misleading the same size and kind of printing, a product. When any such statement, impression conveyed by the health- statement of the significance or design, or device concerning age or related directional statement. relevance of the date is provided, such maturity is contained in an as ‘‘established’’ or ‘‘founded in.’’ If the advertisement, it must include § 14.15 Additional rules for wine. date refers to the date of establishment (immediately adjacent to it and with The rules in this section apply to of any business or brand name, the date substantially equal conspicuousness) all advertisements for wine and are in and its accompanying statement must parts of the statement concerning age

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and percentages required to appear on a ale, porter, or stout. Any statement of collection requirements in this part by label of the product under part 5 of this class or designation used in an the Office of Management and Budget chapter. advertisement should be identical to the (OMB) under the Paperwork Reduction (2) An advertisement for any whisky designation on the label. Act of 1995, Public Law 104–13. or brandy (except immature brandies) (c) Strength claims—(1) General. For (b) Chart. The following chart for which a statement of age is not purposes of this section, the term identifies each section in this part that required on a label, or an advertisement ‘‘strength claim’’ means a statement that contains an information collection for any rum or Tequila that has been directly or indirectly makes a claim requirement and the OMB control aged for four years or more, may contain about the alcohol content of the number that is assigned to that an inconspicuous, general product. This section does not apply to information collection requirement. representation as to age or maturity, or the use of the terms ‘‘low alcohol,’’ other similar representations, even ‘‘reduced alcohol,’’ ‘‘non-alcoholic,’’ Section where Current OMB Control No. though a specific age statement does not and ‘‘alcohol-free’’ in accordance with contained appear on the label of the advertised § 7.65 of this chapter; to claims about 14.4 ...... New information collection. product or in the advertisement itself. low alcohol content in general; or to the 14.6 ...... 1513–0087. (c) Place of origin and producer or use of an alcohol content statement in 14.12 ...... 1513–0087. processor. An advertisement for a accordance with § 7.65 of this chapter. 14.14 ...... 1513–0087. distilled spirits product may not contain (2) Prohibition. The use of a strength 14.15 ...... 1513–0087. any statement, design, device, or claim on malt beverage advertisements 14.16 ...... 1513–0087. representation, stating or implying that is prohibited if it misleads consumers 14.17 ...... 1513–0087. the distilled spirits were manufactured by implying that products should be in, or imported from, a country or place purchased or consumed on the basis of PART 19—DISTILLED SPIRITS other than their actual country or place higher alcohol strength. Examples of PLANTS of origin, or that the distilled spirits strength claims are ‘‘full strength,’’ were produced or processed by a person ‘‘extra strength,’’ ‘‘high test,’’ and ‘‘high ■ 5. The authority citation continues to who was not in fact the actual producer proof.’’ read as follows: or processor. Subpart C—Penalties and Compromise Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004–5006, 5008, 5010, 5041, § 14.17 Additional rules for malt of Liability beverages. 5061, 5062, 5066, 5081, 5101, 5111–5114, § 14.21 Criminal penalties. 5121–5124, 5142, 5143, 5146, 5148, 5171– The rules in this section apply to 5173, 5175, 5176, 5178–5181, 5201–5204, advertisements for malt beverages and A violation of the advertising 5206, 5207, 5211–5215, 5221–5223, 5231, are in addition to the prohibited provisions of 27 U.S.C. 205(f) is 5232, 5235, 5236, 5241–5243, 5271, 5273, practice rules that apply to for all wine, punishable as a misdemeanor. See 27 5301, 5311–5313, 5362, 5370, 5373, 5501– distilled spirits, or malt beverage U.S.C. 207 for the statutory provisions 5505, 5551–5555, 5559, 5561, 5562, 5601, advertisements as set forth in §§ 14.12 relating to criminal penalties, consent 5612, 5682, 6001, 6065, 6109, 6302, 6311, through14.14. decrees, and injunctions. 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, (a) ‘‘Bonded’’ and other terms. An 9303, 9304, 9306. § 14.22 Conditions of basic permit. advertisement may not contain the ■ 6. In § 19.356, revise paragraphs (c) words ‘‘bonded,’’ ‘‘bottled in bond,’’ A basic permit is conditioned upon and (d) to read as follows: ‘‘aged in bond,’’ ‘‘bonded age,’’ ‘‘bottled compliance with the requirements of 27 under Customs supervision,’’ or other U.S.C. 205, including the advertising § 19.356 Alcohol content and fill. phrases containing these or synonymous provisions of this part. A willful * * * * * terms that may create a misleading violation of the conditions of a basic (c) Variations in alcohol content. impression as to governmental permit provides grounds for the Variations in alcohol content may not supervision over production or bottling. revocation or suspension of the permit, exceed 0.3 percent alcohol by volume (b) Statement of class. An as applicable, as set forth in part 1 of above or below the alcohol content advertisement may not identify a this chapter. stated on the label. product containing less than one-half of § 14.23 Compromise. (d) Example. Under paragraph (c) of one percent (0.5%) of alcohol by volume this section, a product labeled as Pursuant to 27 U.S.C. 207, the with the designation ‘‘beer,’’ ‘‘lager containing 40 percent alcohol by appropriate TTB officer is authorized, beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ or volume would be acceptable if the test with respect to any violation of 27 ‘‘stout,’’ or with any other class or type for alcohol content found that it U.S.C. 205, to compromise the liability designation commonly applied to contained no less than 39.7 percent arising with respect to such violation fermented malt beverages containing alcohol by volume and no more than upon payment of a sum not in excess of one-half of one percent or more of 40.3 percent alcohol by volume. $500 for each offense, to be collected by alcohol by volume. In addition, an Signed: August 28, 2018. advertisement may identify a product the appropriate TTB officer and to be John J. Manfreda, with the class designation ‘‘ale,’’ paid into the Treasury as miscellaneous ‘‘porter,’’ or ‘‘stout’’ only if the product receipts. Administrator. Approved: November 1, 2018. was fermented at comparatively high Subpart D—Paperwork Reduction Act temperature, was produced without the Timothy E. Skud, use of coloring or flavoring materials § 14.31 OMB control numbers assigned Deputy Assistant Secretary (Tax, Trade and (other than those recognized in standard under the Paperwork Reduction Act. Tariff Policy). brewing practices), and possesses the (a) Purpose. This subpart displays the [FR Doc. 2018–24446 Filed 11–23–18; 8:45 am] characteristics generally attributed to control numbers assigned to information BILLING CODE–P

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