Federal Register / Vol. 77, No. 56 / Thursday, March 22, 2012 / Rules and Regulations 16671 litigation, establish clear legal DEPARTMENT OF THE TREASURY • The United States; standards, and reduce burden. • A State; Alcohol and Tobacco Tax and Trade • Two or no more than three States Executive Order 13563 Bureau which are all contiguous; The Department of State has • A county; considered this rule in light of 27 CFR Part 4 • Two or no more than three counties Executive Order 13563, dated January in the same State; or [Docket No. TTB–2010–0007; T.D. TTB–101; • A viticultural area as defined in 18, 2011, and affirms that this regulation Re: Notice No. 110] is consistent with the guidance therein. § 4.25(e). RIN 1513–AB58 Section 4.25(b)(1) states that an Executive Order 13175 American wine is entitled to an Labeling Imported Wines With The Department has determined that appellation of origin other than a Multistate Appellations this rulemaking will not have tribal multicounty or multistate appellation, implications, will not impose AGENCY: Alcohol and Tobacco Tax and or a viticultural area, if, among other substantial direct compliance costs on Trade Bureau, Treasury. requirements, at least 75 percent of the Indian tribal governments, and will not ACTION: Final rule; Treasury decision. wine is derived from fruit or agricultural preempt tribal law. Accordingly, products grown in the appellation area Executive Order 13175 does not apply SUMMARY: The Alcohol and Tobacco Tax indicated. Use of an appellation of to this rulemaking. and Trade Bureau is amending the wine origin comprising two or no more than labeling regulations to allow the three States which are all contiguous is Paperwork Reduction Act labeling of imported wines with allowed under § 4.25(d) if: This rule does not impose any new multistate appellations of origin. This • All of the fruit or other agricultural reporting or recordkeeping requirements amendment provides treatment for products were grown in the States subject to the Paperwork Reduction Act, imported wines similar to that currently indicated, and the percentage of the 44 U.S.C. Chapter 35. available to domestic wines bearing wine derived from fruit or other multistate appellations. It also provides agricultural products grown in each List of Subjects in 22 CFR Part 126 consumers with additional information State is shown on the label with a Arms and munitions, Exports. regarding the origin of these wines. tolerance of plus or minus 2 percent; • Accordingly, for the reasons set forth DATES: Effective Date: This final rule is The wine has been fully finished above, Title 22, Chapter I, Subchapter effective April 23, 2012. (except for cellar treatment pursuant to M, part 126 is amended as follows: FOR FURTHER INFORMATION CONTACT: 27 CFR 4.22(c) and blending that does Jennifer Berry, Alcohol and Tobacco not result in an alteration of class or PART 126—GENERAL POLICIES AND Tax and Trade Bureau, Regulations and type under 27 CFR 4.22(b)) in one of the PROVISIONS Rulings Division; telephone (202) 453– labeled appellation States; and • 1039 ext. 275, or email The wine conforms to the laws and ■ 1. The authority citation for part 126 [email protected]. regulations governing the composition, is revised to read as follows: method of manufacture, and designation SUPPLEMENTARY INFORMATION: Authority: Secs. 2, 38, 40, 42, and 71, Pub. of wines in all the States listed in the L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, Background on Wine Labeling appellation. 2780, 2791, and 2797); E.O. 11958, 42 FR An appellation of origin for imported 4311; 3 CFR, 1977 Comp., p. 79; 22 U.S.C. TTB Authority wine is defined in § 4.25(a)(2) as: 2651a; 22 U.S.C. 287c; E.O. 12918, 59 FR Section 105(e) of the Federal Alcohol • A country; 28205; 3 CFR, 1994 Comp., p. 899; Sec. 1225, Administration Act (FAA Act), 27 • A state, province, territory, or Pub. L. 108–375; Sec. 7089, Pub. L. 111–117; U.S.C. 205(e), authorizes the Secretary similar political subdivision of a Sections 7045 and 7046, Pub. L. 112–74. of the Treasury to prescribe regulations country equivalent to a state or county; ■ for the labeling of wine, distilled spirits, or 2. Section 126.1 is amended by • revising paragraph (n) to read as and malt beverages. The FAA Act A viticultural area (which is follows: requires that these regulations, among defined in § 4.25(e)(1)(ii) in the case of other things, prohibit consumer imported wine). § 126.1 Prohibited exports, imports, and deception and the use of misleading Section 4.25(b)(2) states that an sales to or from certain countries. statements on labels, and ensure that imported wine is entitled to an * * * * * labels provide the consumer with appellation of origin other than a (n) Sri Lanka. It is the policy of the adequate information as to the identity viticultural area if: ‘‘(1) At least 75 United States to deny licenses or other and quality of the product. The Alcohol percent of the wine is derived from fruit approvals for exports or imports of and Tobacco Tax and Trade Bureau or agricultural products grown in the defense articles and defense services (TTB) administers the regulations area indicated by the appellation of destined for or originating in Sri Lanka, promulgated under the FAA Act. origin; and (2) the wine conforms to the except that a license or other approval requirements of the foreign laws and Use of Appellations of Origin on Wine may be issued, on a case-by-case basis, regulations governing the composition, Labels for humanitarian demining and aerial or method of production, and designation maritime surveillance. Part 4 of the TTB regulations (27 CFR of wines available for consumption * * * * * part 4) sets forth standards promulgated within the country of origin.’’ There is under the FAA Act for the labeling and no provision in the current TTB Dated: March 13, 2012. advertising of wine. Section 4.25 of the regulations for the use of multistate Rose E. Gottemoeller, TTB regulations (27 CFR 4.25) sets forth appellations on imported wines. Acting Under Secretary, Arms Control and rules regarding the use of appellations The existing regulations regarding International Security, Department of State. of origin. An appellation of origin for an appellations of origin, including the [FR Doc. 2012–6822 Filed 3–21–12; 8:45 am] American wine is defined in § 4.25(a)(1) provisions permitting multistate BILLING CODE 4710–25–P as: appellations for American wines, were VerDate Mar<15>2010 16:48 Mar 21, 2012 Jkt 226001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM 22MRR1 mstockstill on DSK4VPTVN1PROD with RULES 16672 Federal Register / Vol. 77, No. 56 / Thursday, March 22, 2012 / Rules and Regulations promulgated by TTB’s predecessor and that 100 percent of the wine be fair and equitable treatment of imported agency, the Bureau of Alcohol, Tobacco derived from fruit or other agricultural and domestic wines, including the and Firearms (ATF), in T.D. ATF–53 (43 products grown in those regions. These requirement questioned by some FR 37672), published August 23, 1978. requirements mirror the current commenters that multistate appellations The preamble of T.D. ATF–53 stated requirements, discussed above, for be contiguous for foreign wines. that the regulations provided ‘‘a multistate appellations on American Contiguity is already required for comprehensive scheme for appellation wines. domestic wines; therefore TTB is of origin labeling’’ resulting in ‘‘more TTB received four comments in requiring it for foreign wines in this rule accurate information being provided to response to Notice No. 110. The as well. consumers about wine origin.’’ commenters were: (1) An Australian The Bureau and its predecessor have According to T.D. ATF–53, multistate winery; (2) the Australian Department of long interpreted the term ‘‘contiguous,’’ appellations were suggested by Foreign Affairs and Trade; (3) New as it appears in 27 CFR 4.25(a)(1)(iii), to domestic wine industry members. ATF Zealand Winegrowers, a trade include two States which actually touch decided to allow multistate appellations organization; and (4) the Government of at a point along a common boundary, or ‘‘in order to permit greater flexibility in New Zealand. All four commenters three States which are connected appellation of origin labeling,’’ provided generally support the proposal to allow throughout in an unbroken sequence. that all the grapes come from the named multistate appellation labeling on See ATF Ruling 91–1 (1991), http:// States, that the percentage of grapes imported wines. However, three of the www.ttb.gov/rulings/2001-2.htm. For from each State be shown on the label, commenters express concerns about example, North Dakota and South and that the wine conform to the laws certain aspects of the proposal. Dakota are contiguous, as are South and regulations governing the The Australian Department of Foreign Dakota and Nebraska. North Dakota, composition, method of manufacture, Affairs and Trade expresses concern South Dakota and Nebraska are also and designation of wines in all of the about the requirement that all the contiguous for the purpose of using States listed in the appellation. There named areas be contiguous, a three States in a multistate appellation was no discussion in T.D. ATF–53 requirement that duplicates that for on a wine label, even though North American wine contained in 27 CFR regarding multistate appellations for Dakota and Nebraska, without South 4.25(d). The commenter states that this foreign wines, including why multistate Dakota, are not contiguous with one requirement would preclude Tasmania, appellations were limited to American another and could not be used together an island, from being included in a wines.