[Federal Register Volume 75, Number 212 (Wednesday, November 3, 2010)]
[Proposed Rules]
[Pages 67663-67666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27736]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 4
[Docket No. TTB-2010-0007; Notice No. 110]
RIN 1513-AB58
Labeling Imported Wines With Multistate Appellations (2008R-265P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to amend
the wine labeling regulations to allow the labeling of imported wines
with multistate appellations of origin. This amendment would provide
treatment for imported wines similar to that currently available to
domestic wines bearing multistate appellations. It would also provide
consumers with additional information regarding the origin of these
wines.
DATES: We must receive written comments on or before January 3, 2011.
ADDRESSES: You may send comments on this notice to one of the following
addresses:
http://www.regulations.gov (via the online comment form
for this notice as posted within Docket No. TTB-2010-0007 at
``Regulations.gov,'' the Federal e-rulemaking portal);
Director, Regulations and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412; or
Hand delivery/courier in lieu of mail: Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, Washington, DC
20005.
See the Public Participation section of this notice for specific
instructions and requirements for submitting comments, and for
information on how to request a public hearing.
You may view copies of this notice, selected supporting materials,
and any comments we receive about this proposal within Docket No. TTB-
2010-0007 at http://www.regulations.gov. A direct link to this docket
is posted on the TTB Web site at http://www.ttb.gov/wine/wine-rulemaking.shtml under Notice No. 110. You also may view copies of this
notice, all supporting materials, and any comments we receive about
this proposal by appointment at the TTB Information Resource Center,
1310 G Street, NW., Washington, DC 20220. Please call 202-453-2270 to
make an appointment.
FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco
Tax and Trade Bureau, Regulations and Rulings Division, P.O. Box 18152,
Roanoke, VA, 24014; telephone 540-344-9333.
SUPPLEMENTARY INFORMATION:
Background on Wine Labeling
TTB Authority
Section 105(e) of the Federal Alcohol Administration Act (FAA Act),
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe
regulations for the labeling of wine, distilled spirits, and malt
beverages. The FAA Act requires that these regulations, among other
things, prohibit consumer deception and the use of misleading
statements on labels, and ensure that labels provide the consumer with
adequate information as to the identity and quality of the product. The
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the
regulations promulgated under the FAA Act.
[[Page 67664]]
Use of Appellations of Origin on Wine Labels
Part 4 of the TTB regulations (27 CFR part 4) sets forth standards
promulgated under the FAA Act for the labeling and advertising of wine.
Section 4.25 of the TTB regulations (27 CFR 4.25) sets forth rules
regarding the use of appellations of origin. An appellation of origin
for an American wine is defined in Sec. 4.25(a)(1) as:
The United States;
A State;
Two or no more than three States which are all contiguous;
A county;
Two or no more than three counties in the same States; or
A viticultural area as defined in Sec. 4.25(e)(1)(i).
Section 4.25(b)(1) provides that an American wine is entitled to an
appellation of origin other than a multicounty or multistate
appellation, or a viticultural area, if, among other requirements, at
least 75 percent of the wine is derived from fruit or agricultural
products grown in the appellation area indicated. Use of an appellation
of origin comprising two or no more than three contiguous States is
allowed under Sec. 4.25(d) if:
All of the fruit or other agricultural products were grown
in the States indicated, and the percentage of the wine derived from
fruit or other agricultural products grown in each State is shown on
the label with a tolerance of plus or minus 2 percent;
The wine has been fully finished (except for cellar
treatment pursuant to 27 CFR 4.22(c) and blending that does not result
in an alteration of class or type under 27 CFR 4.22(b)) in one of the
labeled appellation States; and
The wine conforms to the laws and regulations governing
the composition, method of manufacture, and designation of wines in all
the States listed in the appellation.
An appellation of origin for imported wine is defined in Sec.
4.25(a)(2) as:
A country;
A state, province, territory, or similar political
subdivision of a country equivalent to a state or county; or
A viticultural area (which is defined in Sec.
4.25(e)(1)(ii) in the case of imported wine).
Section 4.25(b)(2) provides that an imported wine is entitled to an
appellation of origin other than a viticultural area if: ``(1) At least
75 percent of the wine is derived from fruit or agricultural products
grown in the area indicated by the appellation of origin; and (2) the
wine conforms to the requirements of the foreign laws and regulations
governing the composition, method of production, and designation of
wines available for consumption within the country of origin.'' There
is no provision in the current TTB regulations for the use of
multistate appellations on imported wines.
The existing regulations regarding appellations of origin,
including the provisions permitting multistate appellations for
American wines, were promulgated by our predecessor agency, the Bureau
of Alcohol, Tobacco and Firearms (ATF), in T.D. ATF-53 (43 FR 37675),
published August 23, 1978. The preamble of T.D. ATF-53 noted that the
regulations provided ``a comprehensive scheme for appellation of origin
labeling'' resulting in ``more accurate information being provided to
consumers about wine origin.'' According to T.D. ATF-53, multistate
appellations were suggested by domestic wine industry members. ATF
decided to allow multistate appellations ``in order to permit greater
flexibility in appellation of origin labeling,'' provided that all the
grapes come from the named States, that the percentage of grapes from
each State be shown on the label, and that the wine conform to the laws
and regulations governing the composition, method of manufacture, and
designation of wines in all of the States listed in the appellation.
There was no discussion in T.D. ATF-53 regarding multistate
appellations for foreign wines, including why multistate appellations
were limited to American wines.
Australian Petition
The Australian Wine and Brandy Corporation (AWBC), a quasi-
governmental authority responsible for, among other activities,
regulating the exportation of Australian wine, submitted a petition to
TTB to amend Sec. 4.25(a)(2) to permit the labeling of Australian
wines with multistate appellations. This proposal would allow an
Australian wine imported into the United States to bear an appellation
comprised of two or three Australian States, such as ``Victoria-New
South Wales-South Australia.'' According to the AWBC petition,
Australian regulations allow wines to be labeled with up to three
Geographical Indications (officially defined wine regions) provided
that 95 percent of the product is from the listed regions, the regions
are listed in descending order of their proportions in the blend, and a
minimum of 5 percent of the wine is from each listed region. Australian
Geographical Indications include the Australian States, which are
roughly equivalent to American States.
TTB Analysis
TTB believes that the considerations that led to the adoption of
multistate appellations for American wines expressed in T.D ATF-53,
namely greater information for the consumer and greater flexibility to
the winemaker, also apply to the use of multistate appellations for
imported wines. Further, as noted above, Sec. 4.25(a)(2) already
recognizes political subdivisions of a country equivalent to a State as
qualifying as appellations of origin.
TTB therefore proposes to amend Sec. 4.25 to permit the use of
multistate appellations for imported wines. The proposed amendments
reflect the following considerations:
TTB notes that other wine-producing countries do not
necessarily have political subdivisions that are called ``states'' and
Sec. 4.25(a)(2) already recognizes that there are ``similar''
political subdivisions equivalent to a State that qualify as
appellations of origin for imported wine. Consistent with the current
regulatory approach, TTB believes it is appropriate to refer to similar
political subdivisions of a country that are equivalent to a State in
the new texts covering multistate appellations. As a practical matter,
before approving any certificate of label approval (COLA) for imported
wine that contains a multistate appellation, TTB must be able to
conclude that: (1) The entities named in the appellation are states,
provinces, territories, or political subdivisions of the country
equivalent to a State; and (2) the entities named in the appellation
are contiguous. To assist TTB in reaching these conclusions, TTB may
request, under the authority of 27 CFR 4.38(h), that COLA applicants
provide documentation that supports these necessary conclusions. Such
documentation may take the form of maps which delineate the entities
named and are highlighted to show the entities' contiguity, or
statements from officials within the country of origin which provide
factual information in support of these conclusions.
TTB is proposing to require that all (100 percent) of the
wine be derived from fruit or other agricultural products grown in the
political subdivisions shown on the label and that the percentage of
the wine derived from fruit or other agricultural products grown in
each political subdivision be shown on the label. This amendment would
mirror the current requirement for multistate appellations on American
wines, which we believe provides the
[[Page 67665]]
consumer with useful information regarding the identity and quality of
the wine.
TTB is also proposing to specify that imported wine
labeled with a multistate appellation must conform to the requirements
of the foreign laws and regulations governing the composition, method
of production, and designation of wines available for consumption
within the country of origin. This amendment would parallel the
requirement applicable to imported wine with a single state (or similar
political subdivision) appellation under Sec. 4.25(b)(2)(ii).
The amendments to Sec. 4.25 proposed in this document entail
revisions of paragraph (a)(2), the introductory text of paragraph
(b)(2), and paragraph (d), as well as a conforming change in paragraph
(e)(1)(ii). The revision of paragraph (a)(2) involves the addition of a
subparagraph covering multistate appellations; the entire paragraph
(a)(2) appears in the proposed regulatory text for clarity. The change
to paragraph (b)(2) involves the addition of the words ``other than a
multistate appellation'' similar to the wording of the introductory
text of paragraph (b)(1) in regard to American wine. The revisions of
paragraph (d) involve redesignation of the existing text as
subparagraph (1) and adding a new subparagraph (2) to cover multistate
appellations for imported wine. Finally, a number of nonsubstantive
editorial-type organizational and wording changes have been made to the
revised texts for clarity and readability purposes.
Public Participation
Comments Sought
We request comments from interested members of the public. We are
particularly interested in whether the proposed changes will result in
treatment for imported wines comparable to that currently available to
domestic wines bearing a multistate appellation of origin. We are
interested in comments regarding subdivisions of foreign political
systems, including the various political subdivisions that might be
considered equivalents of U.S. States. In addition, we are interested
in comments concerning the requirements for the use of multistate
appellations for imported wine. We also are interested in receiving
comments on whether this additional information is helpful to the
consumer. Please provide specific information in support of your
comments.
Submitting Comments
You may submit comments on this notice by using one of the
following three methods:
Federal e-Rulemaking Portal: You may send comments via the
online comment form linked to this notice in Docket No. TTB-2010-0007
on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A link to the docket is available under Notice No.
110 on the TTB Web site at http://www.ttb.gov/wine/wine-rulemaking.shtml. Supplemental files may be attached to comments
submitted via Regulations.gov. For information on how to use
Regulations.gov, click on the site's Help or FAQ tabs.
U.S. Mail: You may send comments via postal mail to the
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and
Trade Bureau, P.O. Box 14412, Washington, DC 20044-4412.
Hand Delivery/Courier: You may hand-carry your comments or
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau,
1310 G Street, NW., Suite 200-E, Washington, DC 20005.
Please submit your comments by the closing date shown above in this
notice. Your comments must reference Notice No. 110 and include your
name and mailing address. Your comments also must be made in English,
be legible, and be written in language acceptable for public
disclosure. We do not acknowledge receipt of comments, and we consider
all comments as originals.
If you are commenting on behalf of an association, business, or
other entity, your comment must include the entity's name as well as
your name and position title. If you comment via Regulations.gov,
please include the entity's name in the ``Organization'' blank of the
comment form. If you comment via postal mail, please submit your
entity's comment on letterhead.
You may also write to the Administrator before the comment closing
date to ask for a public hearing. The Administrator reserves the right
to determine whether to hold a public hearing.
Confidentiality
All submitted comments and attachments are part of the public
record and subject to disclosure. Do not enclose any material in your
comments that you consider to be confidential or that is inappropriate
for public disclosure.
Public Disclosure
On the Federal e-rulemaking portal, Regulations.gov, we will post,
and the public may view, copies of this notice, selected supporting
materials, and any electronic or mailed comments we receive about this
proposal. A direct link to the Regulations.gov docket containing this
notice and the posted comments received on it is available on the TTB
Web site at http://www.ttb.gov/wine/wine-rulemaking.shtml under Notice
No. 110. You may also reach the docket containing this notice and the
posted comments received on it through the Regulations.gov search page
at http://www.regulations.gov. All posted comments will display the
commenter's name, organization (if any), city, and State, and, in the
case of mailed comments, all address information, including e-mail
addresses. We may omit voluminous attachments or material that we
consider unsuitable for posting.
You and other members of the public may view copies of this notice,
all related petitions, maps and other supporting materials, and any
electronic or mailed comments we receive about this proposal by
appointment at the TTB Information Resource Center, 1310 G Street, NW.,
Washington, DC 20220. You may also obtain copies at 20 cents per 8.5- x
11-inch page. Contact our information specialist at the above address
or by telephone at 202-453-2270 to schedule an appointment or to
request copies of comments or other materials.
Regulatory Flexibility Act
We certify under the provisions of the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.) that this proposed rule will not have a
significant economic impact on a substantial number of small entities.
The proposed amendments merely provide optional, additional flexibility
in wine labeling decisions. Accordingly, a regulatory flexibility
analysis is not required.
Executive Order 12866
This proposed rule is not a significant regulatory action as
defined by Executive Order 12866. Therefore, it requires no regulatory
assessment.
Drafting Information
Jennifer Berry of the Regulations and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, drafted this document.
List of Subjects in 27 CFR Part 4
Administrative practice and procedure, Advertising, Customs duties
and inspection, Imports, Labeling,
[[Page 67666]]
Packaging and containers, Reporting and recordkeeping requirements,
Trade practices, Wine.
Proposed Amendments to the Regulations
For the reasons discussed in the preamble, TTB proposes to amend 27
CFR part 4, Labeling and Advertising of Wine, as set forth below:
PART 4--LABELING AND ADVERTISING OF WINE
1. The authority citation for 27 CFR part 4 continues to read as
follows:
Authority: 27 U.S.C. 205, unless otherwise noted.
2. Section 4.25 is amended:
a. By revising paragraph (a)(2), the introductory text of paragraph
(b)(2), and paragraph (d); and
b. In paragraph (e)(1)(ii), by removing the words ``(other than an
appellation defined in paragraph (a)(2)(i) or (a)(2)(ii))'' and adding,
in their place, the words ``(other than an appellation defined in
paragraph (a)(2)(i), (a)(2)(ii), or (a)(2)(iii))''.
The revisions read as follows:
Sec. 4.25 Appellations of origin.
(a) * * *
(2) Imported wine. An appellation of origin for imported wine is:
(i) A country;
(ii) A state, province, territory, or similar political subdivision
of a country equivalent to a State or county;
(iii) Two or no more than three states, provinces, territories, or
similar political subdivisions of a country equivalent to a State which
are all contiguous; or
(iv) A viticultural area (as defined in paragraph (e) of this
section).
(b) * * *
(2) Imported wine. An imported wine is entitled to an appellation
of origin other than a multistate appellation, or a viticultural area,
if:
* * * * *
(d) Multistate appellations. (1) American wine. An appellation of
origin comprising two or no more than three States which are all
contiguous may be used, if:
(i) All of the fruit or other agricultural products were grown in
the States indicated, and the percentage of the wine derived from fruit
or other agricultural products grown in each State is shown on the
label with a tolerance of plus or minus 2 percent;
(ii) The wine has been fully finished (except for cellar treatment
pursuant to Sec. 4.22(c), and blending that does not result in an
alteration of class or type under Sec. 4.22(b)) in one of the labeled
appellation States; and
(iii) The wine conforms to the laws and regulations governing the
composition, method of manufacture, and designation of wines in all of
the States listed in the appellation.
(2) Imported wine. An appellation of origin comprising two or no
more than three states, provinces, territories, or similar political
subdivisions of a country equivalent to a State which are all
contiguous may be used if:
(i) All of the fruit or other agricultural products were grown in
the states, provinces, territories, or similar political subdivisions
of a country equivalent to a State indicated, and the percentage of the
wine derived from fruit or other agricultural products grown in each
state, province, territory, or political subdivision equivalent to a
State is shown on the label with a tolerance of plus or minus 2
percent; and
(ii) The wine conforms to the requirements of the foreign laws and
regulations governing the composition, method of production, and
designation of wines available for consumption within the country of
origin.
* * * * *
Signed: June 2, 2010.
John J. Manfreda,
Administrator.
Approved: June 30, 2010.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2010-27736 Filed 11-2-10; 8:45 am]
BILLING CODE 4810-31-P