[Federal Register: February 11, 2008 (Volume 73, Number 28)]
[Notices]
[Page 7804-7805]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11fe08-116]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
[TTB Ruling 2008-1]
Standards of Identity and the Use of Semi-generic Designations
and Retsina on Certain European Wines Imported into the United States
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: General notice.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau issues this
ruling to clarify the standard of identity that applies to certain
European wines when they are imported into the United States.
DATES: This ruling is effective on January 24, 2008.
FOR FURTHER INFORMATION CONTACT: Lynn Gittes, Program Manager,
International Trade Division, Alcohol and Tobacco Tax and Trade Bureau,
1310 G Street, NW., Washington, DC 20220; telephone 202-927-8104.
SUPPLEMENTARY INFORMATION:
TTB Ruling 2008-1
Standards of Identity and the Use of Semi-generic Designations and
Retsina on Certain European Wines Imported into the United States
27 CFR 4.21 Standards of Identity
Wines using one of the 17 specified designations listed in Annex II
of the Agreement Between the United States of America and the European
Community on Trade in Wine, which originate in the applicable European
Union member State and which comply with the European Union standard
for such wines, will meet the United States standard of identity or the
trade understanding for such wine.
TTB RUL. 2008-1
The Alcohol and Tobacco Tax and Trade Bureau has been asked if the
adoption of the Agreement Between the United States of America and the
European Community on Trade in Wine (``the Agreement'') and the related
statutory change regarding semi-generic designations and Retsina affect
the standard of identity that applies to certain European wines when
they are imported into the United States.
Background
On March 10, 2006, the United States and the European Community
(EC) signed the Agreement in which the United States agreed to seek to
change the legal status of 17 designations listed in Annex II of the
Agreement in order to restrict their use solely to wine originating in
the applicable European Union (EU) member State, except as provided for
under a ``grandfather'' provision. These 17 designations are: Burgundy,
Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle,
Port, Retsina, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, and
Tokay. The Agreement's ``grandfather'' provision allows persons or
their successors in interest to continue to label non-EU wines with one
of the 17 listed designations if that term is used only on labels for
wine bearing the brand name, or the brand name and the fanciful name,
if any, for which the applicable Certificate of Label Approval (COLA)
or Certificate of Exemption from Label Approval was issued by the
Secretary of the Treasury before March 10, 2006.
Legislation changing the legal status of the 17 designations in the
Agreement was enacted by Congress and signed by the President on
December 20, 2006, as section 422 of the Tax Relief and Health Care Act
of 2006 (``the Act''), Public
[[Page 7805]]
Law 109-432, 120 Stat. 2922, 2972. As amended by the Act, section
5388(c) of the Internal Revenue Code of 1986 (26 U.S.C. 5388(c))
contains a provision regarding the use of the 17 designations listed in
the Agreement. The provision states that, in the case of wine of the
EC, the listed designations may be used only if the wine conforms to
the standard of identity, if any, for such wine contained in the
regulations issued under section 5388 (27 CFR 24.257 and, by reference,
27 CFR 4.21) or, if there is no such standard, to the trade
understanding of such class and type. All other wines bearing the
listed designations are subject to two additional requirements: (1)
That the wine be marked with an appropriate appellation of origin
disclosing the origin of the wine, and (2) that the person, or the
person's successor in interest, using a listed designation hold a COLA
or Certificate of Exemption from Label Approval issued by the Secretary
of the Treasury before March 10, 2006, for a wine label bearing that
designation and that brand name or brand name and fanciful name.
Held, that an EU wine product that bears one of the 17 designations
listed in section 5388(c)(3)(C)(i) of the Internal Revenue Code of 1986
and that conforms to the EU standard for such wine complies with the
United States standard of identity or the trade understanding for such
wine. The recent amendment to 26 U.S.C. 5388(c) concerning semi-generic
designations does not require such EU wine products imported into the
United States to meet a new standard of identity.
Signed: January 24, 2008.
John J. Manfreda,
Administrator.
[FR Doc. E8-2392 Filed 2-8-08; 8:45 am]
BILLING CODE 4810-31-P