[Federal Register Volume 60, Number 9 (Friday, January 13, 1995)]
[Proposed Rules]
[Pages 3171-3177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-997]
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DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Parts 4, 5, and 7
[Notice No. 804; Re Notice No. 803]
RIN: AB32
Alteration of Labels on Containers of Distilled Spirits, Wine,
and Beer (CRD-94-8)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Corrected Notice of Proposed Rulemaking.
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SUMMARY: On January 4, 1995, the Bureau of Alcohol, Tobacco and
Firearms (ATF) published a notice of proposed rulemaking (Notice No.
803, 60 FR 411) in the Federal Register. Because the notice contained
errors which could cause confusion to the public, ATF is reprinting the
entire corrected text here, in this correction notice, as it should
have appeared in Notice No. 803. The original text of Notice No. 803
should be disregarded; instead, all interested parties should refer to
the reprinted text in this document. ATF is extending the comment
period accordingly to allow 60 days from the date of this correction
notice.
ATF is proposing to amend the regulations in 27 CFR Parts 4, 5, and
7 which implement section 105(e) of the Federal Alcohol Administration
Act of 1935, which makes it unlawful for any person to alter, mutilate,
destroy, obliterate, or remove any mark, brand or label on wine,
distilled spirits, or malt beverages held for sale in interstate or
foreign commerce or after shipment therein. The proposed amendments
will eliminate a requirement that persons obtain ATF approval before
relabeling wine and malt beverage products. Instead, persons who intend
to relabel wine, malt beverage, or distilled spirits products would be
required to notify ATF, in writing, of their intent to relabel. The
proposed amendments will make it unlawful to relabel a distilled
spirits, wine, or malt beverage container if the effect of such action
is to remove from the container or label any information required by
ATF regulations, or a product identification code placed on the product
by the producer for tracing purposes.
DATES: Written comments must be received on or before March 14, 1995.
ADDRESSES: Send written comments to: Chief, Wine, Beer, and Spirits
Regulations Branch, Bureau of Alcohol, Tobacco and Firearms, P.O. Box
50221, Washington, DC 20091-0221. [Attn: Notice No. 804.]
FOR FURTHER INFORMATION CONTACT: Daniel J. Hiland, Wine, Beer, and
Spirits Regulations Branch, Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue, NW., Washington, DC 20226 (202-927-8210)
SUPPLEMENTARY INFORMATION:
Background
Several producers and importers of alcoholic beverages have
complained to the Bureau of Alcohol, Tobacco and Firearms (ATF) that
product identification code markings placed on containers and labels of
wines and distilled spirits by producers for tracing purposes are being
removed or mutilated after the product has left the producer's
premises. Such alterations of labels or packages have been permitted in
foreign trade zones and Customs bonded warehouses, because ATF
regulations do not specifically address such activities, and because
product identification codes are not mandatory information under ATF
regulations. However, the effect of such action is to make it
impossible for the producers to rely on production codes to trace
mislabeled, adulterated, or unsafe products.
Federal Alcohol Administration Act
Section 105(e) of the Federal Alcohol Administration Act (FAA Act),
27 U.S.C. Sec. 205(e), authorizes ATF to prescribe regulations relating
to the packaging, marking, branding, labeling, and size and fill of
containers as will prohibit deception of the consumer with respect to
such products or the quantity thereof.
In order to prevent the sale or shipment or other introduction of
[[Page 3172]] distilled spirits, wine, or malt beverages in interstate
or foreign commerce which are not bottled, packaged, or labeled in
compliance with the regulations, the FAA Act requires that prior to
bottling distilled spirits, wines, or malt beverages, the producer or
bottler must obtain a certificate of label approval covering the
product. Similarly, the law provides that no person shall remove
bottled distilled spirits, wines, or malt beverages from Customs
custody for consumption in bottles, for sale or any other commercial
purpose, without having first obtained a certificate of label approval
covering the product.
Thus, the certificate of label approval requirement ensures that
mislabeled distilled spirits, wines, or malt beverages cannot be
introduced in interstate or foreign commerce. To ensure that products
with proper labels were not altered once such products had been removed
from bond, section 205(e) further provides as follows:
It shall be unlawful for any person to alter, mutilate, destroy,
obliterate, or remove any mark, brand, or label upon distilled
spirits, wine, or malt beverages held for sale in interstate or
foreign commerce or after shipment therein, except as authorized by
Federal law or except pursuant to regulations of the Secretary of
the Treasury authorizing relabeling for purposes of compliance with
the requirements of this subsection or of State law.
Regulations which implement these provisions of the FAA Act, as they
relate to wine, distilled spirits, and malt beverages, are set forth in
title 27, Code of Federal Regulations (CFR), parts 4, 5, and 7,
respectively. These regulations provide for relabeling in certain
circumstances.
Sections 4.30 and 7.20 provide that someone wanting to relabel must
receive prior permission from the Regional Director (Compliance).
Section 5.31 does not currently require prior approval for the
relabeling of distilled spirits, as long as such relabeling is done in
accordance with an approved certificate of label approval.
The regulations provide that distilled spirits, wines and malt
beverages may be relabeled as authorized by Federal law. Such products
may also be relabeled for purposes of compliance with the requirements
of the regulations, or of State law. Finally, there may be added to
wine and distilled spirits bottles, after removal from Customs custody,
or prior to or after removal from bonded premises, without application
for permission to relabel, a label identifying the wholesale or retail
distributor thereof, and containing no reference whatever to the
characteristics of the product.
Customs Bonded Warehouses and Foreign Trade Zones
The statutory prohibition against the alteration or mutilation of
distilled spirits, wine, or malt beverage labels applies to all
products held for sale in interstate or foreign commerce. The terms of
the statute thus apply to nontaxpaid domestic and imported products
held for storage or manipulation in a Customs bonded warehouse or
foreign trade zone.
However, since domestic nontaxpaid alcoholic beverages bottled for
exportation are exempt from the certificate of label approval
requirement, and certificates of label approval are not required for
imported alcoholic beverages until they are withdrawn from Customs
custody for consumption in the United States, ATF has previously taken
the position that relabeling activities could occur in a Customs bonded
warehouse or foreign trade zone without prior ATF approval. ATF
regulations authorize the relabeling of alcoholic beverages in Customs
custody in order to bring such products in compliance with a
certificate of label approval prior to withdrawal for consumption.
However, current regulations do not specifically set forth the
limitations on other types of relabeling activities in Customs bonded
warehouses or foreign trade zones. In general, ATF saw no need to
scrutinize labeling activities involving such products unless and until
they were withdrawn from Customs custody for consumption in the United
States.
While ATF has not required that persons relabeling alcoholic
beverages in Customs bonded warehouses or foreign trade zones obtain
prior approval, such activities are subject to regulation by the United
States Customs Service (``Customs''). Because the current regulations
do not clarify the scope of the prohibition against alteration of
labels, there has been considerable confusion as to what types of
labeling activities are authorized in a Customs bonded warehouse or
foreign trade zone.
ATF has taken the position that there are restrictions as to the
removal of mandatory information from domestic nontaxpaid distilled
spirits, wines, and malt beverages. Pursuant to parts 19, 24, and 25,
such products must be marked with certain mandatory information, which
is necessary to protect the revenue, and to ensure the tracing of the
product in the event of diversion. Thus, it has been ATF's policy that
such mandatory information may not be removed from products, regardless
of the fact that they are in a Customs bonded warehouse or foreign
trade zone awaiting exportation. However, this policy is not set forth
in the current regulations.
ATF is thus proposing to amend the regulations in parts 4, 5, and 7
to clarify that the prohibition against alteration or mutilation of
labels applies to products held in a foreign trade zone or customs
bonded warehouse. The proposed amendments will specify the type of
relabeling activities permissible for both domestic nontaxpaid
alcoholic beverages and imported alcoholic beverages stored in a
Customs bonded warehouse or foreign trade zone. Since current
regulations do not authorize removal of domestic nontaxpaid malt
beverages to Customs bonded warehouses pending exportation, the
relabeling of malt beverages in Customs bonded warehouses is not
discussed.
The proposed regulations will provide that relabeling of distilled
spirits, wines, and malt beverages in Customs bonded warehouses or
foreign trade zones can be accomplished without giving notice to ATF,
as long as such relabeling is done under the supervision of Customs
officials, in compliance with Customs requirements, and does not
involve the removal from the label or package of information made
mandatory by ATF regulations. The proposed language concerning the
supervision of Customs officials and compliance with Customs
requirements is not intended to impose any new requirements; instead,
this language merely recognizes current requirements under Customs
regulations. See 19 C.F.R. 19.11 and 146.51.
Product Identification Codes
The complaints about the mutilation of product identification codes
in Customs bonded warehouses and foreign trade zones brought to the
surface an issue which ATF had previously been considering--whether lot
identification numbers or product identification codes should be made
mandatory information on consumer packages of alcoholic beverages. Such
codes are not currently required under the regulations. Instead, labels
on domestic distilled spirits, wines, and malt beverages are merely
required to list the name and address of the bottler. For imported
products, the name and address of the importer is required information
on the label.
Obviously, these requirements provide enough information so that if
a product is mislabeled, adulterated, or poses a health hazard, it is
possible to determine the source of the product. However, this does not
allow either ATF or the producer to trace a particular
[[Page 3173]] consumer package back to a bottling line or production
shift.
Current regulations in parts 19, 24 and 25 promulgated pursuant to
the Internal Revenue Code require certain markings on cases of
distilled spirits, wines, and malt beverages. Cases of distilled
spirits and wines must be marked with serial numbers. These markings
are required in order to protect the revenue, and to facilitate tracing
in the event of the diversion of nontaxpaid goods. However, case
markings have limited value in tracing consumer packages such as
bottles and cans. Once the product is removed from the case, those
markings are obviously of no value in tracing the product.
The purpose of product identification codes (i.e., lot
identification numbers, bottling dates, freshness dates, etc.) on
labels or packages of products is to facilitate the tracing of a
product for safety, compliance or quality control issues. For example,
if an alcoholic beverage product is found to have been tampered with,
or contaminated, any type of code which would enable the tracing of the
product back to the bottling line or production batch would be
extremely valuable in determining how the tampering or contamination
occurred, and in allowing the producer to make an informed decision as
to the extent of the problem, and the need for product recalls.
For this reason, ATF believes that product identification codes are
useful as a consumer protection measure. Safety, labeling and quality
control problems often come to light by virtue of consumer complaints
or market place testing of products by ATF. In such instances, case
markings will generally be of no avail. However, the use of product
identification codes can help to readily identify the hazardous or
defective product, and, in the event that a health hazard exists,
assist in a speedier and more orderly recall of these products from the
marketplace.
The use of lot identification numbers has already been mandated by
the Council of the European Communities, in Council Directive 89/396/
EEC, dated June 14, 1989. In view of the fact that many European
countries now require such markings, and many large producers in the
United States voluntarily place such codes on product labels or
containers, ATF raised the issue of mandatory product identification
codes at an industry meeting held in Washington, D.C. on July 26, 1994.
The purpose of raising this issue with industry members was to
gather information on current industry practices regarding product
identification codes. ATF has learned that many domestic and foreign
producers of alcoholic beverages voluntarily place product
identification codes or lot identification numbers on the labels or
containers of wines, distilled spirits, and malt beverages. Typically,
the label or container of the product will be marked with a code
indicating the batch from which the product was made, a bottling date,
a production shift code, or some other type of mark which will enable
the producer to trace the consumer package to a specific production
batch or bottling line.
While large producers are more likely to have their own system of
product codes, small producers often find that such a system is
unnecessary, because their own records will enable them to do any
necessary tracing. At the industry meeting, questions were raised as to
whether it was necessary to impose a product identification code
requirement on small producers.
Rather than impose a mandatory product identification code
requirement on all producers, ATF is proposing to leave the decision as
to whether to place product identification codes on consumer packages
to the producer. At this time, we believe that the consumer is
adequately protected by the information required under the current
regulations.
However, in order to allow producers to efficiently develop a
system in which they can ensure the tracing of their own products, we
believe that the voluntary placement of product identification codes on
consumer packages by producers should be protected by regulation. This
will address the specific problem currently faced by producers--the
removal of product identification codes by distributors or other third
parties.
If a producer believes that the only way it can efficiently trace
products is to put product identification codes on the consumer
packages, ATF does not believe it should allow the intent of the
producer to be frustrated by third parties. It is the producer who will
have to bear the costs of recalls if product identification codes have
been obliterated by distributors. It is the consumer who will suffer if
the obliteration of such marks makes it impossible to trace problems
with contaminated products. Finally, such actions make it more
difficult for ATF to trace problems with products already in the market
place.
Thus, ATF is proposing an amendment to the regulations which will
specifically prohibit the labeling or relabeling of products if the
effect of such action is to remove from labels or containers ``product
identification codes'' placed on the label or container by the producer
for tracing purposes. The term ``product identification code'' is
defined to include any numbers, letters, symbols, dates, or other codes
placed on the label or container by which the producer may be able to
trace a product back to a particular production lot or batch, bottling
line, or date of removal.
Under the proposed regulations, if it is necessary for anyone but
the producer to remove the original label from the product, the product
identification code must be put back on the new label. ATF believes
that this proposal will adequately address the problem before us,
without imposing an undue burden on any part of the industry. Most
importantly, it will ensure that an important consumer protection
mechanism voluntarily placed on consumer packages by manufacturers will
not be thwarted.
Although ATF is not proposing to require product identification
codes on labels or packages, it is the opinion of the Bureau that such
codes are useful, and should be encouraged. If at any time we find that
the lack of such codes is hampering the exercise of our consumer
protection function, we may wish to reconsider this option.
Products Bottled for Exportation
Although products which are bottled for exportation are not
required to be covered by certificates of label approval, ATF believes
that the prohibition on alteration of labels applies to such products.
The alteration or mutilation of required information on labels, as well
as product identification codes, would hamper ATF's efforts in tracing
the illegal diversion of nontaxpaid alcoholic beverages which were
intended for exportation. One of the purposes of the FAA Act was to aid
in the collection of taxes on distilled spirits, wines, and malt
beverages. Thus, we have authority under the FAA Act to extend these
provisions to products which are intended to be exported.
Elimination of Prior Approval Requirement
The proposed amendments to parts 4, 5, and 7 relating to the
relabeling of wine, distilled spirits, and malt beverages would also
resolve an inconsistency in the present regulations. Currently, persons
who wish to relabel wine and malt beverages are required to make
written application and receive approval from ATF prior to relabeling
these products. However, persons who wish to relabel distilled spirits
are not [[Page 3174]] required to receive prior approval from ATF, as
long as the distilled spirits products are relabeled in accordance with
an approved label.
The proposed amendments would eliminate the requirement to receive
approval from the regional director prior to relabeling wine and malt
beverages. Instead, any persons who wished to relabel wine, malt
beverages, or distilled spirits would be required to notify the
Director, in writing, of their intent to relabel. This letterhead
notice must be accompanied by duplicate copies of the old and new
labels, together with a written statement of the reasons for
relabeling, the quantity and location of the product to be relabeled,
and the name and address of the person conducting the relabeling
activities.
ATF believes that the proposed amendment will eliminate the
inconsistencies in the current regulations, while still enabling the
tracing of products in the event of a safety hazard or a compliance
issue. Since the requirement for prior approval is being eliminated,
the proposed amendments will provide that the notice should be sent to
the Director, rather than the regional director. This proposal will
increase efficiency in the Bureau's tracing of labels, since copies of
certificates of label approval are maintained at Bureau headquarters.
As previously noted, the proposed regulations will provide that ATF
does not need to be notified of the relabeling of alcoholic beverage
products in Customs bonded warehouses or foreign trade zones, as long
as all other requirements are met.
Miscellaneous
ATF is also proposing to add to section 7.20 a provision which is
already found in slightly different forms in sections 4.30 and 5.31.
This provision authorizes, without any notice requirement, the addition
of a label identifying the wholesale or retail distributor, or
identifying the purchaser or consumer, as long as the label contains no
reference whatever to the characteristics of the product. The proposed
regulations will standardize this provision for wines, distilled
spirits, and malt beverages. Furthermore, the notice procedure in all
three sections is also standardized for the sake of consistency.
Although the current regulations in sections 4.30 and 7.20 do not
specifically condition approval for relabeling on the existence of a
certificate of label approval for the new labels, such a policy has
always been enforced by ATF. The proposed regulations will require
submission of evidence of label approval for label changes.
Executive Order 12866
It has been determined that this proposed regulation is not a
significant regulatory action as defined by Executive Order 12866.
Accordingly, this proposal is not subject to the analysis required by
this Executive Order.
Regulatory Flexibility Act
It is hereby certified that this regulation will not have a
significant impact on a substantial number of small entities. This
notice requests comments on a proposal to make it unlawful for any
person to alter, mutilate, destroy, obliterate, or remove any mark,
brand or label on wine, distilled spirits, or malt beverages held for
sale in interstate or foreign commerce or after shipment therein,
including products held in a foreign trade zone or Customs bonded
warehouse, if the effect of such action is to remove mandatory
information required by ATF regulations, or to remove a product
identification code placed on the label or container by the producer
for tracing purposes. The proposal would also impose a notice
requirement on the relabeling of distilled spirits, wine, and malt
beverages, while eliminating the prior approval requirement previously
imposed by the wine and malt beverage regulations. This proposal does
not mandate new labeling requirements, but merely protects and
preserves mandatory information already required under the regulations,
and product identification codes which a producer voluntarily chooses
to put on the product. Thus, the proposal should not have a significant
economic impact on a substantial number of small entities.
Accordingly, a regulatory flexibility analysis is not required
because the proposal, if promulgated as a final rule, is not expected:
(1) To have significant secondary or incidental effects on a
substantial number of small entities, or (2) to impose, or otherwise
cause, a significant increase in the reporting, recordkeeping, or other
compliance burdens on a substantial number of small entities.
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1980, 44
U.S.C. 3504(h).
Comments on the collection of information should be directed to the
Office of Management and Budget, Attention: Desk Officer for the
Department of the Treasury, Bureau of Alcohol, Tobacco and Firearms,
Office of Information and Regulatory Affairs, Washington, DC 20503,
with copies to: Reports Management Officer, Information Programs
Branch, Room 3450, Bureau of Alcohol, Tobacco and Firearms, 650
Massachusetts Avenue, NW., Washington, DC 20226.
The collections of information in this regulation are in 27 CFR
4.30, 5.31, and 7.20. These sections require that persons who wish to
alter approved labels must notify ATF. This information is required by
the Bureau of Alcohol, Tobacco and Firearms to ensure that alterations
of labels are done in compliance with the regulations. The likely
respondents are businesses or other for-profit institutions, including
small businesses or organizations. This information collection
requirement is included in OMB Control Number 1512-0092, which covers
the relabeling of distilled spirits, wines, and beer. The estimated
total number of label approvals issued annually under Control Number
1512-0092 is 54,601. Based on an estimated average time of 30 minutes
to complete the application for label approval, the total annual burden
associated with Control Number 1512-0092 is 27,300 hours. We estimate
that ATF will receive about 180 notices of intent to relabel distilled
spirits, wines, and malt beverages every year.
The amendments proposed in this document will not change the
estimated number of 54,601 responses, because any person wanting to
relabel an alcoholic beverage product is already required to obtain a
certificate of label approval. The requirement for filing a notice with
the Director will not change the estimated average time of 30 minutes
to complete the application for a certificate of label approval,
because only about 180 of the 54,601 responses will involve relabeling.
The additional time required for those 180 responses is not significant
enough to affect the estimated average time of 30 minutes to complete
the application for label approval. Thus, the total burden estimate
associated with Control Number 1512-0092 is not affected by the
amendments proposed in this document.
Public Participation
ATF requests comments from all interested persons concerning the
amendments proposed by this notice. Comments received on or before the
closing date will be carefully considered. Comments received after that
date will be given the same [[Page 3175]] consideration if it is
practical to do so, but assurance of consideration cannot be given
except as to comments received on or before the closing date. ATF will
not recognize any material in comments as confidential. Comments may be
disclosed to the public. Any material which the commenter considers to
be confidential or inappropriate for disclosure to the public should
not be included in the comment. The name of the person submitting the
comment is not exempt from disclosure.
Any interested person who desires an opportunity to comment orally
at a public hearing on the proposed amendments to the regulations
should submit his or her request, in writing, to the Director within
the 60-day comment period. The Director, however, reserves the right to
determine, in light of all circumstances, if a public hearing is
necessary.
Disclosure
Copies of this notice and the written comments will be available
for public inspection during normal business hours at: ATF Public
Reading Room, Room 6480, 650 Massachusetts Avenue, NW., Washington, DC
20226
Drafting Information
The principal author of this document is Daniel J. Hiland, Alcohol
and Tobacco Programs Division, Bureau of Alcohol, Tobacco and Firearms.
List of Subjects
27 CFR Part 4
Advertising, Consumer protection, Customs duties and inspection,
Imports, Labeling, Liquors, Packaging and containers, Wine.
27 CFR Part 5
Advertising, Consumer protection, Customs duties and inspection,
Imports, Liquors, Packaging and containers.
27 CFR Part 7
Advertising, Consumer Protection, Customs duties and inspection,
Imports, Labeling.
Issuance
Title 27, Chapter I, is proposed to be amended as follows:
PART 4--LABELING AND ADVERTISING OF WINE
Paragraph 1. The authority citation for 27 CFR Part 4 continues to
read as follows:
Authority: 27 U.S.C. 205.
Par. 2. Section 4.30(b) is revised, and new paragraphs (c) and (d)
are added to read as follows:
Sec. 4.30 General.
* * * * *
(b) Alteration of labels. (1) It shall be unlawful for any person
to alter, mutilate, destroy, obliterate, or remove any mark, brand, or
label upon wine held for sale in interstate or foreign commerce or
after shipment therein, including wine held in Customs bonded
warehouses or foreign trade zones, except as authorized by Federal law,
or as provided for in this section.
(2) Relabeling. (i) Persons may engage in additional labeling or
relabeling of wine in containers for purposes of compliance with the
requirements of this subpart or of State law only if the new labels are
covered by certificates of label approval, and the relabeling will not
result in the removal from the container or label of a product
identification code placed on the container or label by the producer
for tracing purposes. For purposes of this section, the term ``product
identification code'' includes any numbers, letters, symbols, dates, or
other codes placed on the label or container by which the producer may
be able to trace a product back to a particular production lot or
batch, bottling line, or date of removal.
(ii) Persons who wish to relabel in accordance with paragraph
(b)(2)(i) of this section must give prior written notice to the
Director of their intent to relabel. A notice of intent to relabel wine
shall be accompanied by two complete sets of the old labels and two
complete sets of any proposed new labels, together with a statement of
the reasons for relabeling, the quantity and the location of the wine,
and the name and address of the person conducting the relabeling
activity. In addition, persons desiring to relabel wine must provide
evidence that they have applied for and received a certificate of label
approval, ATF F 5100.31, covering such products.
(3) Labels identifying wholesale or retail distributor. There may
be added to the container, after removal from customs custody, or prior
to or after removal from the premises where bottled or packed, without
notice to ATF, a label identifying the wholesale or retail distributor
thereof or identifying the purchaser or consumer, and containing no
references whatever to the characteristics of the products.
(c) Customs bonded warehouses. (1) Domestic wines which have been
removed without payment of tax for transfer to a Customs bonded
warehouse pending exportation may be relabeled without notice to ATF,
as long as such relabeling is done under the supervision of Customs
officers, in compliance with all applicable Customs requirements, and
the effect of the relabeling is not to remove from the container or
label any markings which are required under part 24 of this chapter, or
any product identification code placed on the container or label by the
producer for tracing purposes.
(2) Imported wines held in a Customs bonded warehouse may be
relabeled without notice to ATF, as long as such relabeling is done
under the supervision of Customs officers, in compliance with all
applicable Customs requirements, and the effect of the relabeling is
not to remove from the container or label any product identification
code placed on the container or label by the producer for tracing
purposes. As provided in Sec. 4.40, imported beverage wine in
containers shall not be released from Customs custody for consumption
without a certificate of label approval.
(d) Foreign trade zones. (1) Domestic wines which have been
withdrawn without payment of tax for deposit in a foreign trade zone
pending exportation may be relabeled without notice to ATF as long as
such relabeling is done under the supervision of Customs officers, in
compliance with all applicable Customs requirements, and the effect of
the relabeling is not to remove from the container or label any
markings required by Part 24 of this chapter, or any product
identification code placed on the container or label by the producer
for tracing purposes.
(2) Imported wines which have been entered into a foreign trade
zone may be relabeled without notice to ATF, as long as such relabeling
is done under Customs supervision and in compliance with Customs
requirements, and the effect of such relabeling is not to remove from
the label or container any product identification code placed on the
label or container by the producer for tracing purposes. As provided in
Sec. 4.40, imported beverage wine in containers shall not be released
from Customs custody for consumption without a certificate of label
approval.
Par. 3. Section 4.80 is revised to read as follows:
Sec. 4.80 Exports.
With the exception of the regulations at Sec. 4.30(b), (c), and
(d), the regulations in this part shall not apply to wine exported in
bond.
PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS
Par. 4. The authority citation for 27 CFR part 5 continues to read
as follows:
Authority: 26 U.S.C. 5301, 7805; 27 U.S.C. 205.
[[Page 3176]] Par. 5. Section 5.1 is revised to read as follows:
Sec. 5.1 General.
The regulations in this part relate to the labeling and advertising
of distilled spirits. This part applies to the several States of the
United States, the District of Columbia, and the Commonwealth of Puerto
Rico. With the exception of the regulations at Sec. 5.31(b), (c), and
(d), the regulations in this part do not apply to distilled spirits for
export.
Par. 6. Section 5.31 (b) is revised, and new paragraphs (c) and (d)
are added to read as follows:
Sec. 5.31 General.
* * * * *
(b) Alteration of labels. (1) It shall be unlawful for any person
to alter, mutilate, destroy, obliterate, or remove any mark, brand, or
label upon distilled spirits held for sale in interstate or foreign
commerce or after shipment therein, including distilled spirits held in
Customs bonded warehouses or foreign trade zones, except as authorized
by Federal law, or as provided in this section.
(2) Relabeling. (i) Persons may engage in additional labeling or
relabeling of distilled spirits in containers for purposes of
compliance with the requirements of this subpart or of State law only
if the new labels are covered by certificates of label approval, and
the relabeling will not result in the removal from the container or
label of a product identification code placed on the container or label
by the producer for tracing purposes. For purposes of this section, the
term ``product identification code'' includes any numbers, letters,
symbols, dates, or other codes placed on the label or container by
which the producer may be able to trace a product back to a particular
production lot or batch, bottling line, or date of removal.
(ii) Persons who wish to relabel in accordance with paragraph
(b)(2)(i) of this section must give prior written notice to the
Director of their intent to relabel. A notice of intent to relabel
distilled spirits shall be accompanied by two complete sets of the old
labels and two complete sets of any proposed new labels, together with
a statement of the reasons for relabeling, the quantity and the
location of the distilled spirits, and the name and address of the
person conducting the relabeling activity. In addition, persons
desiring to relabel distilled spirits must provide evidence that they
have applied for and received a certificate of label approval, ATF F
5100.31, covering such products.
(3) Labels identifying wholesale or retail distributor. There may
be added to the bottle, after removal from customs custody, or prior to
or after removal from bonded premises, without notice to ATF, a label
identifying the wholesale or retail distributor thereof or identifying
the purchaser or consumer, and containing no references whatever to the
characteristics of the product.
(c) Customs bonded warehouses. (1) Domestic distilled spirits which
have been removed without payment of tax for transfer to a Customs
bonded warehouse pending exportation may be relabeled without notice to
ATF, as long as such relabeling is done under the supervision of
Customs officers, in compliance with all applicable Customs
requirements, and the effect of the relabeling is not to remove from
the container or label any markings which are required under part 19 of
this chapter, or any product identification code placed on the
container or label by the producer for tracing purposes.
(2) Imported distilled spirits held in a Customs bonded warehouse
may be relabeled without notice to ATF, as long as such relabeling is
done under the supervision of Customs officers, in compliance with all
applicable Customs requirements, and the effect of the relabeling is
not to remove from the container or label any product identification
code placed on the container or label by the producer for tracing
purposes. As provided in Sec. 5.51, bottled distilled spirits shall not
be released from Customs custody for consumption without a certificate
of label approval.
(d) Foreign trade zones. (1) Domestic distilled spirits which have
been withdrawn without payment of tax for deposit in a foreign trade
zone pending exportation may be relabeled without notice to ATF as long
as such relabeling is done under the supervision of Customs officers,
in compliance with all applicable Customs requirements, and the effect
of the relabeling is not to remove from the container or label any
markings required by part 19 of this chapter, or any product
identification code placed on the container or label by the producer
for tracing purposes.
(2) Imported distilled spirits which have been entered into a
foreign trade zone may be relabeled without notice to ATF, as long as
such relabeling is done under Customs supervision and in compliance
with Customs requirements, and the effect of such relabeling is not to
remove from the label or container any product identification code
placed on the label or container by the producer for tracing purposes.
As provided in Sec. 5.51, bottled distilled spirits shall not be
released from Customs custody for consumption without a certificate of
label approval.
PART 7--LABELING AND ADVERTISING OF MALT BEVERAGES
Par. 7. The authority citation for 27 CFR Part 7 continues to read
as follows:
Authority: 27 U.S.C. 205.
Par. 8. Section 7.20 is amended by revising paragraph (c), and
adding new paragraphs (d) and (e) to read as follows:
Sec. 7.20 General.
* * * * *
(c) Alteration of labels. (1) It shall be unlawful for any person
to alter, mutilate, destroy, obliterate, or remove any mark, brand, or
label upon malt beverages held for sale in interstate or foreign
commerce or after shipment therein, including malt beverages held in
Customs bonded warehouses or foreign trade zones, except as authorized
by Federal law, or as provided in this section.
(2) Relabeling. (i) Malt beverages in containers may be relabeled
for purposes of compliance with the requirements of this subpart or of
State law only if the new labels are covered by certificates of label
approval, and the relabeling will not result in the removal from the
container or label of a product identification code placed on the
container or label by the producer for tracing purposes. For purposes
of this section, the term ``product identification code'' includes any
numbers, letters, symbols, dates, or other codes placed on the label or
container by which the producer may be able to trace a product back to
a particular production lot or batch, bottling line, or date of
removal.
(ii) Persons who wish to relabel in accordance with paragraph
(c)(2)(i) of this section must give prior written notice to the
Director of their intent to relabel. A notice of intent to relabel malt
beverages shall be accompanied by two complete sets of the old labels
and two complete sets of any proposed new labels, together with a
statement of the reasons for relabeling, the quantity and the location
of the malt beverages, and the name and address of the person
conducting the relabeling activity. In addition, persons desiring to
relabel malt beverages must provide evidence that they have applied for
and received a certificate of label approval, ATF F 5100.31, covering
such products.
(3) Labels identifying wholesale or retail distributor. There may
be added to the bottle, after removal from customs custody, or prior to
or after removal from bonded premises, without notice to ATF, a label
identifying the wholesale or retail distributor thereof or
[[Page 3177]] identifying the purchaser or consumer, and containing no
references whatever to the characteristics of the product.
(d) Customs bonded warehouses. Imported malt beverages held in a
Customs bonded warehouse may be relabeled without notice to ATF, as
long as such relabeling is done under the supervision of Customs
officers, in compliance with all applicable Customs requirements, and
the effect of the relabeling is not to remove from the container or
label any product identification code placed on the container or label
by the producer for tracing purposes. As provided in Sec. 7.31, no
imported malt beverages in containers shall be released from Customs
custody for consumption without a certificate of label approval.
(e) Foreign trade zones. (1) Domestic malt beverages which have
been withdrawn without payment of tax for deposit in a foreign trade
zone pending exportation may be relabeled without notice to ATF as long
as such relabeling is done under the supervision of Customs officers,
in compliance with all applicable Customs requirements, and the effect
of the relabeling is not to remove from the container or label any
markings required by Part 25 of this chapter or any product
identification code placed on the container or label by the producer
for tracing purposes.
(2) Imported malt beverages which have been entered into a foreign
trade zone may be relabeled without notice to ATF, as long as such
relabeling is done under Customs supervision and in compliance with
Customs requirements, and the effect of such relabeling is not to
remove from the label or container any product identification code
placed on the label or container by the producer for tracing purposes.
As provided in Sec. 7.31, no imported malt beverages in containers
shall be released from Customs custody for consumption without a
certificate of label approval.
Par. 9. Section 7.60 is revised to read as follows:
Sec. 7.60 Exports.
With the exception of the regulations at Sec. 7.20(c), (d) and (e),
the regulations in this part shall not apply to malt beverages exported
in bond.
Signed: January 10, 1995.
Daniel R. Black,
Acting Director.
[FR Doc. 95-997 Filed 1-11-95; 1:43 pm]
BILLING CODE 4810-31-U