[Federal Register Volume 63, Number 94 (Friday, May 15, 1998)]
[Proposed Rules]
[Pages 27017-27019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13017]


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

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 4

[Notice No. 861]
RIN 1512-AB70


Net Contents Statement on Wine Labels (95R-054P)

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

ACTION: Notice of proposed rulemaking.

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

SUMMARY: Based on a petition it has received, the Bureau of Alcohol, 
Tobacco and Firearms (ATF) is proposing to amend the regulations to 
provide that the net contents statement for wine in containers of less 
than 1 liter may be expressed on the label in centiliters (cl) as an 
alternative to milliliters (ml). ATF believes that the proposed 
regulations provide industry members with greater flexibility in 
labeling their wines, while ensuring the consumer is adequately 
informed as to the net contents of the product.
    The proposed amendments are part of the Administration's efforts to 
reinvent government by reducing regulatory burdens and streamlining 
requirements.

DATES: Written comments must be received on or before August 13, 1998.

ADDRESSES: Send written comments to: Chief, Regulations Division; 
Bureau of Alcohol, Tobacco and Firearms; P.O. Box 50221; Washington, DC 
20091-0221; ATTN: Notice No. .

FOR FURTHER INFORMATION CONTACT: James P. Ficaretta, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts 
Avenue, NW., Washington, D.C. 20226 (202-927-8230).

SUPPLEMENTARY INFORMATION:

Background

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), vests broad authority in the Director of ATF, as the 
delegate of the Secretary of the Treasury, to prescribe regulations 
intended to prevent deception of the consumer and to provide the 
consumer with adequate information as to, among other things, the net 
contents of the product. Regulations which implement the provisions of 
section 105(e), as they relate to wine, are set forth in title 27, Code 
of Federal Regulations (CFR), part 4.
    Section 4.32(b) provides, in part, that a statement of net contents 
must appear on the label of all containers of wine in accordance with 
Sec. 4.37. Section 4.37 provides that the net contents of wine for 
which a metric standard of fill is prescribed must be stated on the 
label in the same manner and form as set forth in the standard of fill. 
The authorized metric standards of fill for American and imported wine, 
for sale in interstate commerce within the United States, are set forth 
in Sec. 4.73 as follows:

3 liters
1.5 liters
1 liter
750 milliliters
500 milliliters
375 milliliters
187 milliliters
100 milliliters
50 milliliters

As provided in Sec. 4.37(a), the net contents of wine for which no 
standard of fill is prescribed, e.g., sake, must be stated in liters 
and in decimal portions of a liter for quantities larger than one 
liter, and in milliliters for quantities of less than one liter.
    Pursuant to Sec. 4.32(b)(2), if the net contents of the wine is an 
authorized standard of fill, e.g., 750 milliliters, the net contents 
statement may appear on any label affixed to the container. If the net 
contents is a standard of fill other than an authorized standard of 
fill, e.g., 720 milliliters, the net contents statement must appear on 
a label affixed to the front of the container.
    Since the regulations show ``ml'' as an abbreviation for milliliter 
(Sec. 4.37(a)(2)), that abbreviation may be used in lieu of milliliter, 
where required. ATF's policy is that the word liter may be abbreviated 
as ``L'' or ``l'' (under certain circumstances), or it may appear in a 
shortened form such as ``Lt,'' provided such shortened form is not 
likely to mislead or confuse the consumer.
    Finally, Sec. 4.37 provides that the net contents need not be 
stated on the label if it is legibly blown, etched, sandblasted, marked 
by underglaze coloring, or otherwise permanently marked by any method 
approved by the Director on the side, front, or back of the container 
in an unobscured location.

Discussion

    Metric standards of fill for wine were first prescribed in Treasury 
Decision (T.D.) ATF-12 (39 FR 45216, December 31, 1974; corrected at 40 
FR 1240, January 7, 1975), and became mandatory on January 1, 1979. In 
order to avoid confusion among consumers, the final rule required 
metric net contents to be expressed in liters and decimal portions 
thereof for quantities larger than one liter (e.g., 1.5 liters) and in 
milliliters for quantities of less than one liter (e.g., 750 
milliliters). ATF noted in the preamble of the final rule that 
statements of net contents in liters or milliliters would standardize 
the manner by which metric net contents are to be stated while also 
reflecting the degree of accuracy necessary to measure the content of 
wine bottles. ATF's decision to express the net contents in milliliters 
for wine in containers of less than one liter was based, in part, on 
testimony presented at the hearing which preceded T.D. ATF-12. A 
representative testifying on behalf of the American National Metric 
Council made the following comments:

For everyday use the Metric Practice Committee of the American 
National Metric Council recommends milliliter--ml--as the only 
submultiple of liter. . . . The important thing is to avoid the 
confusion of an excessive variety of submultiples, which may cause 
errors in communication. These other submultiples, which have been 
used in various parts of the world, would be a deciliter--dl, a 
centiliter--cl. For American usage, however, we are recommending 
only milliliter--ml.

    Containers for wine may bear statements of net contents in addition 
to the required metric net contents statement provided such optional 
statements represent an equivalent volume and are not in any way 
misleading to the consumer. For example, if the label on a wine 
container shows the net contents in accordance with Sec. 4.73 as ``750 
ml,'' an additional statement such as ``75 cl,'' ``.75 L,'' ``25.4 fl. 
oz.,'' etc., may appear elsewhere on the container provided its 
appearance is not in a manner which is misleading to the consumer.

Petition

    ATF recently received a petition, filed by Banfi Vintners (Banfi) 
of Old Brookville, New York, requesting an amendment of the regulations 
concerning the net contents statement on labels of wine. Specifically, 
the petitioner has asked that the regulations be amended to provide 
that the net contents for wine bottled in a 750 milliliter (750 ml) 
standard of fill be expressed in centiliters, as ``75 cl,'' as an 
alternative to ``750 ml.'' Banfi states that

[[Page 27018]]

75 centiliters is a universally recognized measurement equivalent to 
750 milliliters in the metric system. Furthermore, authorizing this 
alternative net contents statement on wine labels ``would simplify 
current regulations and allow for an easier flow of wines among Europe, 
the world markets and the United States.'' In that regard, the European 
Union (EU) requires a statement of nominal volume (net contents) on 
labels of wine sold in EU countries. Pursuant to European Council 
Directive, the nominal volume must be stated in liters, centiliters or 
milliliters. See Council Regulation (EEC) No. 2392/89 of July 24, 1989 
(Title I, Chapter I, Section AI, Article 2(1)(b); Title I, Chapter II, 
Section A, Article 25(1)(b)); Council Directive 75/106/EEC of December 
19, 1974.

Proposed Regulatory Amendments

    For many years ATF has permitted additional statements of net 
contents to appear on wine labels along with the required net contents 
statement, provided such optional statements represent an equivalent 
volume. In reviewing numerous certificates of label approval the Bureau 
finds that an optional statement of net contents frequently appears on 
labels of imported wine. This is most likely due to the fact that, as 
mentioned, under EU regulations the net contents of wine may be stated 
in milliliters, centiliters, or liters. An optional statement usually 
appears on labels of wine bottled in a 750 milliliter size container (a 
popular size among consumers) and was often expressed in centiliters, 
as ``75 cl.'' To a much lesser extent, the optional statement was 
expressed in decimal portions of a liter, e.g., ``0.75 L'' (``0,75 
L'').
    Optional statements of net contents expressed in centiliters also 
appeared on labels of imported wine bottled in other authorized 
standards of fill. For example, on containers of wine bottled in a 500 
milliliter standard of fill the required and optional net contents 
statements appeared as ``500 ml'' and ``50 cl,'' respectively. In the 
case of wine bottled in a 375 milliliter container (375 ml), the 
additional net contents statement was expressed as ``37.5 cl.'' Thus, 
ATF believes that consumers are accustomed to seeing the net contents 
of wine expressed in centiliters.
    The Bureau also observed that in many instances the required and 
optional net contents statements appeared on the same side of the 
container and, in some cases, in direct conjunction with each other, 
e.g., ``750 ml/75 cl,'' ``375 ml/37,5 cl,'' etc. As such, ATF believes 
that consumers recognize that the required net contents statement, 
expressed in milliliters, and the optional net contents statement, 
expressed in centiliters, represent an equivalent amount in the metric 
system.
    Accordingly, ATF is proposing to amend the regulations to provide 
that the net contents statement for wine in containers of less than 1 
liter shall be expressed in either milliliters (ml) or centiliters 
(cl), or both. The proposed amendment applies to the net contents of 
wine for which a standard of fill is prescribed in Sec. 4.73, i.e., 750 
ml, 500 ml, 375 ml, etc., as well as to the net contents of wine for 
which no standard of fill is prescribed, e.g., 730 ml (73 cl).
    ATF is soliciting comments on this proposed amendment to the 
regulations. ATF is also soliciting comments on the following:
    1. Whether the regulations should be amended in accordance with the 
petitioner's specific request to allow the net contents statement to be 
expressed in centiliters only on wine bottled in a 750 milliliter 
standard of fill;
    2. Whether the regulations should be amended to authorize the net 
contents statement for wine in containers of less than 1 liter to be 
expressed in milliliters, centiliters, or decimal portions of liter. 
For example, in the case of wine bottled in a 750 milliliter standard 
of fill the net contents may be stated on the label as ``750 ml,'' ``75 
cl,'' or ``.75 L.'' ; or
    3. Whether the regulations should be amended to be consistent with 
EU regulations, i.e., regardless of the container size, the net 
contents of wine shall be expressed in liters, milliliters, or 
centiliters.

Executive Order 12866

    It has been determined that this proposed rule is not a significant 
regulatory action by Executive Order 12866. Therefore, a regulatory 
assessment is not required.

Regulatory Flexibility Act

    It is hereby certified that this proposed regulation will not have 
a significant economic impact on a substantial number of small 
entities. The proposed rule is liberalizing in nature in that wine 
producers will have greater choices in labeling their products. 
Accordingly, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507) and its implementing regulations, 5 CFR Part 1320, do not apply 
to this notice of proposed rulemaking because no new requirement to 
collect information is proposed. Section 4.37 (previously approved 
under OMB control number 1512-0482) is being amended to allow producers 
to state the net contents of their products in centiliters as an 
alternative to milliliters for wine in containers of less than 1 liter. 
The proposed amendments are liberalizing in nature, are not 
substantive, and do not impose any additional burden on the industry.

Public Participation

    ATF requests comments on the proposed regulations from all 
interested persons. Comments received on or before the closing date 
will be carefully considered. Comments received after that date will be 
given the same 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 a comment is not exempt from disclosure.
    Any interested person who desires an opportunity to comment orally 
at a public hearing should submit his or her request, in writing, to 
the Director within the 90-day comment period. The Director, however, 
reserves the right to determine, in light of all circumstances, whether 
a public hearing is necessary.

Disclosure

    Copies of the petition, 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.

Drafting Information

    The author of this document is James P. Ficaretta, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 4

    Advertising, Consumer protection, Customs duties and inspection, 
Imports, Labeling, Packaging and containers, and Wine.

Authority and Issuance

    Accordingly, ATF is proposing to amend Part 4 in Title 27 of the 
Code of Federal Regulations as follows:

[[Page 27019]]

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.

    Paragraph 2.  Section 4.37 is amended by revising paragraphs 
(a)(2), (b)(1), and (b)(2) to read as follows:


Sec. 4.37  Net contents.

    (a) * * *
    (2) If less than one liter, net contents shall be stated in 
milliliters (ml) or centiliters (cl), or both.
    (b) * * *
    (1) For the metric standards of fill: 3 liters (101 fl. oz.); 1.5 
liters (50.7 fl. oz.); 1 liter (33.8 fl. oz.); 750 ml or 75 cl (25.4 
fl. oz.); 500 ml or 50 cl (16.9 fl. oz.); 375 ml or 37.5 cl (12.7 fl. 
oz.); 187 ml or 18.7 cl (6.3 fl. oz.); 100 ml or 10 cl (3.4 fl. oz.); 
and 50 ml or 5 cl (1.7 fl. oz.).
    (2) Equivalent volumes of less than 100 fluid ounces shall be 
stated in fluid ounces only, accurate to the nearest one-tenth of a 
fluid ounce; for example, 700 ml or 70 cl (23.7 fl. oz.).
* * * * *
    Paragraph 3.  Section 4.38 is amended by revising the first 
sentence in paragraphs (b)(1) and (b)(2) to read as follows:


Sec. 4.38  General requirements.

    (a) * * *
    (b) Size of type. (1) Containers of more than 187 milliliters (18.7 
centiliters). * * *
    (2) Containers of 187 milliliters (18.7 centiliters) or less. * * *
* * * * *


Sec. 4.71  [Amended]

    Paragraph 4.  Section 4.71(a)(3) is amended by adding ``(18.7 
centiliters)'' after ``187 milliliters''.
    Paragraph 5. Section 4.73(a) is revised to read as follows:


Sec. 4.73  Metric standards of fill.

    (a) Authorized standards of fill. The standards of fill for wine 
are the following:

3 liters
1.5 liters
1 liter
750 milliliters (or
75 centiliters)
500 milliliters (or
50 centiliters)
375 milliliters (or 37.5 centiliters)
187 milliliters (or
18.7 centiliters)
100 milliliters (or 10
centiliters)
50 milliliters (or 5
centiliters)
* * * * *
    Signed: March 17, 1998.
John W. Magaw,
Director.
    Approved: April 20, 1998.
John P. Simpso,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 98-13017 Filed 5-14-98; 8:45 am]
BILLING CODE 4810-31-P