[Federal Register Volume 60, Number 250 (Friday, December 29, 1995)]
[Rules and Regulations]
[Pages 67326-67327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31505]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco, and Firearms

27 CFR Part 5

[T.D. ATF-369; Re: T.D. ATF-360, Notice Nos. 782, 780; 91F009P]
RIN 1512-AB22


Alteration of Class and Type: Vodka

AGENCY: Bureau of Alcohol, Tobacco, and Firearms (ATF), Department of 
the Treasury.

ACTION: Final rule, Treasury decision.

-----------------------------------------------------------------------

SUMMARY: This final rule amends the distilled spirits regulations to 
remove the requirement that on and after December 29, 1995, citric acid 
may be added to vodka in an amount not to exceed 300 milligrams per 
liter (300 ppm) without changing the product's designation as vodka. 
This amendment is being made in accordance with a Federal statutory 
requirement which, in pertinent part, prohibits the implementation of 
T.D. ATF-360 [59 FR 67216, Dec. 29, 1994].

EFFECTIVE DATE: This document is effective on December 29, 1995.

FOR FURTHER INFORMATION CONTACT:
David W. Brokaw, Wine, Beer and Spirits Regulations Branch, (202) 927-
8230.

SUPPLEMENTARY INFORMATION: 

Background

    Treasury decision ATF-360, amended the distilled spirits 
regulations, 27 CFR 5.23(a)(3) to authorize the use of a trace amount 
(defined as up to 300 milligrams per liter or 300 ppm) of critic acid 
in the production of vodka, without changing its designation as vodka. 
This level was intended to ensure that distiller may continue to use 
citric acid as a smoothing agent to correct objectionable tastes which 
might result from such things as the water used in reducing the proof, 
the charcoal used in distillation, or the glass in which packaged. This 
level was also intended to protect the integrity of the standard of 
identify for vodka, a product, which by definition, may not have any 
distinctive character, aroma, taste, or color. The requirements in T.D. 
ATF-360 were to be effective on or after December 29, 1995.

Public Law 104-52, 109 Stat. 468, Nov. 19, 1995

    Section 528 of Public Law 104-52 states that, ``(n)o part of any 
appropriation made available in this Act shall be used to implement 
Bureau of Alcohol, Tobacco and Firearms Ruling T.D. ATF-360; Re: Notice 
Nos. 782, 780, 91F009P.'' The Conference Report accompanying Public Law 
104-52, H.R. Rep. 104-291, Oct. 20, 1995, provides as follows: 
``Although conferees agree with the Senate proposal that no part of any 
appropriation made available in this Act shall be used to implement the 
ATF and Treasury decision ATF-360 (59 FR 67216, 12/29/94), which 
limited the amount of citric acid that could be added to vodka to 300 
parts per million (PPM), the conferees recognize the complex nature of 
the various issues surrounding any standard of identify 

[[Page 67327]]
determination with respect to the labeling of vodka. Therefore, the ATF 
is directed to conduct a study, in consultation with industry members, 
to determine whether a more reasonable industry standard can be 
established that better balances the interests of the consumer, the 
industry, and the government.''
    Accordingly, as a result of Public Law 104-52, ATF is amending 27 
CFR Sec. 5.23(a)(3) to remove the 300 ppm citric acid limitation 
requirement set by T.D. ATF-360 pending further study. During the 
pendency of such study, ATF will continue to allow the use of up to 
1,000 ppm of citric acid in distilling vodka without changing its 
designation as ``vodka,'' subject to the applicable formula 
requirements.

Notice and Public Procedure

    Because this final rule implements a specific Federal statutory 
requirement prescribed by section 528 of Public Law 104-52, and in view 
of the immediate need for guidance to the industry with respect to 
compliance with applicable regulations, it is found to be impractical 
and contrary to the public interest to issue this rule with notice and 
public procedure under 5 U.S.C. 553(b) or subject to the effective date 
limitation of 5 U.S.C. 553(d).

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
final regulatory flexibility analysis (5 U.S.C. 604) are not applicable 
to this final rule because the agency was not required to publish a 
general notice of proposed rulemaking under 5 U.S.C. 553 or any other 
law.

Executive Order 12866

    It has been determined that this regulation is not a significant 
regulatory action as defined in E.O. 12866 because (1) it will not have 
an annual effect on the economy of $100 million or more or adversely 
affect in a material way the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local, or tribal 
communities; (2) create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) materially alter 
the budgetary impact of entitlement, grants, user fees, or loan 
programs, or the rights and obligations of recipients thereof; or (4) 
raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in Executive Order 
12866.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1980, Public Law 
96-511, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
Part 1320, do not apply to this final rule because no requirement to 
collect information is imposed.

Disclosure

    Copies of the notices, the Treasury decision, and all comments are 
available for public inspection during normal business hours at: ATF 
Reading Room, Room 6300, 650 Massachusetts Avenue NW., Washington, DC.

    Drafting Information: The principal author of this document is 
David W. Brokaw, Wine, Beer, and Spirits Regulations Branch, Bureau 
of Alcohol, Tobacco, and Firearms.

List of Subjects in 27 CFR Part 5

    Advertising, Consumer protection, Customs duties and inspection, 
Imports, Labeling, Liquors, Packaging and Containers.

Authority and Issuance

    27 CFR Part 5--Labeling and Advertising of Distilled Spirits, is 
amended as follows:

PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS

    Paragraph 1. 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.

    Par. 2 Section 5.23(a)(3)(iii) is revised to read as follows:


Sec. 5.23  Alterations of class and type

    (a) Additions. * * *
* * * * *
    (3) * * * (iii) any material whatsoever in the case of neutral 
spirits or straight whiskey, except that vodka may be treated with 
sugar in an amount not to exceed 2 grams per liter and a trace amount 
of citric acid.
* * * * *
    Par. 3 Section 5.23(c)(2) is removed.

    Signed: December 11, 1995.
Daniel R. Black,
Acting Director.
    Approved: December 13, 1995.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary (Regulatory, Tariff, & Trade 
Enforcement)
[FR Doc. 95-31505 Filed 12-28-95; 8:45 am]
BILLING CODE 4810-31-M