[Federal Register Volume 64, Number 120 (Wednesday, June 23, 1999)]
[Proposed Rules]
[Pages 33448-33450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15944]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 4

[Notice No. 876; Ref: Notice Nos. 861 and 867]
RIN 1512-AB70


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

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

ACTION: Proposed rule; withdrawal.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is issuing 
this notice of withdrawal to inform interested persons that we are not 
pursuing rulemaking regarding the net contents statement on wine labels 
as proposed in Notice No. 861. The majority of commenters believe that 
allowing the net contents to be expressed in centiliters as an 
alternative to milliliters is misleading and would result in consumer 
confusion.

FOR FURTHER INFORMATION CONTACT: James P. Ficaretta, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts 
Avenue, NW., Washington, DC 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 section 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 section 
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 section 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 section 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 (section 4.37(a)(2)), 
that abbreviation may be used in lieu of milliliter, where required.
    Finally, section 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.

Notice No. 861

    On May 15, 1998, we published a notice in the Federal Register 
soliciting

[[Page 33449]]

comments from the public and industry on a proposal 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) (Notice No. 861, 
63 FR 27017). The proposal was based on a petition we received from 
Banfi Vintners (Banfi) of Old Brookville, New York. Banfi had 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.'' The 
petitioner stated that 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.''
    The comment period for Notice No. 861, initially scheduled to close 
on August 13, 1998, was subsequently extended until October 19, 1998 
(Notice No. 867, September 18, 1998; 63 FR 49883).

Analysis of Comments

    We received 95 comments in response to Notice No. 861. Comments 
were submitted by consumers, industry members (representing domestic 
and foreign interests), various organizations and trade associations 
(e.g., the National Conference on Weights and Measures, the U.S. Metric 
Association, Inc., the Wine Institute, the National Association of 
Beverage Importers, and the Scotch Whisky Association), and one Federal 
agency (U.S. Department of Commerce--National Institute of Standards 
and Technology).
    Of the 93 comments that addressed the proposed regulations, 82 
objected to allowing the net contents for wine to be expressed in 
centiliters as an alternative to milliliters. The commenters contend 
that the American consumer is not yet fully oriented to the metric 
system and that the proposed regulations, if adopted, would result in 
consumer confusion. Furthermore, the current regulations provide 
consumers with one standard of common measurement for wine bottled in 
containers of less than 1 liter, i.e., milliliters. The commenters 
believe that having the net contents expressed in milliliters and 
centiliters on bottles of the same size may lead consumers to assume 
the containers do not hold the same amount of wine.
    Other commenters expressed similar concerns with the proposed 
regulations. One commenter, the National Conference on Weights and 
Measures (NCWM), is a standards-development organization whose members 
include representatives from Federal, State, and local weights and 
measures and other government agencies; businesses, trade and 
professional organizations; consumer and other interested groups. The 
NCWM stated the following:

    The proposed changes are in direct conflict with the metric 
provisions of the 'Uniform Packaging and Labeling Regulation' 
adopted by the NCWM in 1993, the metric regulations adopted by the 
Federal Trade Commission (1994), and metric labeling regulations 
proposed by the Food and Drug Administration for foods, drugs and 
cosmetics (1993). * * * The labeling requirements for packaged goods 
adopted by the NCWM, other Federal Agencies, and OIML limit quantity 
declarations on consumer products to either milliliters or liters to 
reduce the possibility of consumer confusion. The Committee urges 
ATF to withdraw its proposal to permit centiliters because its 
adoption would result in a proliferation of net quantity 
declarations that may mislead consumers * * *

The NCWM explained that the OIML (Organization for Legal Metrology) is 
a worldwide, intergovernmental organization whose primary aim is to 
harmonize the regulations and metrological controls applied by its 
Member States, including the United States, Canada, and the European 
Union.
    Other commenters shared the views of the NCWM, including the 
National Institute of Standards and Technology, a Federal agency within 
the Department of Commerce, and the U.S. Metric Association, Inc. The 
U.S. Metric Association was established in 1916 for the purpose of 
assisting the U.S. in adopting the metric system and providing guidance 
for metric system usage to industry, business, education, and 
consumers.
    Eleven commenters supported the proposed regulations. One 
commenter, a national trade association representing importers of 
alcohol beverages, stated that ``differences between labeling rules of 
U.S. and Europe can cause unnecessary expense to an importer without 
providing the consumer any added protection or information.'' This 
commenter also argued that the proposed regulations would provide 
producers with flexibility in labeling their products. In addition, the 
commenter believed that the proposed regulations should apply to 
distilled spirits. Other commenters in favor of the proposal expressed 
similar concerns.

Decision

    After careful consideration of the comments received, we have 
determined that an amendment of the regulations is not justified or 
warranted. In Notice No. 861 we stated that the metric standards of 
fill were first prescribed on December 31, 1974, pursuant to T.D. ATF-
12, and became mandatory on January 1, 1979. In order to standardize 
the manner by which metric net contents were to be stated on the label 
and 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 and in milliliters for quantities less 
than one liter. Thus, as one commenter pointed out in the comments 
received in response to Notice No. 861, for more than 20 years the 
regulations have provided consumers ``with the advantage of one simple 
standard of common measurement (milliliters) for wines in quantities 
less than one liter. The proposed regulation would remove that 
advantage. Seeing different units of measurement (ml and cl) on wine 
bottles of the same size may lead the consumer to assume that there is 
some difference in the contents of these bottles, * * *.''
    In addition, as discussed in Notice No. 861, our 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. In particular, the American 
National Metric Council recommended milliliter (ml) as the only 
submultiple of liter and emphasized that ``[t]he important thing is to 
avoid the confusion of an excessive variety of submultiples, which may 
cause errors in communication. These other submultiples, * * * would be 
a deciliter--dl, a centiliter--cl.'' This concern is still valid more 
than 20 years later. As the NCWM stated in their comment:

    When the NCWM developed its metric labeling regulations it was 
the consensus of the organization and FTC and FDA that metric 
prefixes such as centi, deka, deci, hecto and others were 
inappropriate for use on consumer packages.

    It is clear from the comments received in response to Notice No. 
861 that American consumers are not yet completely familiar with all 
units in the metric system. Based on the information contained in the 
comments, we believe that the proposed regulations, if adopted, would 
not be of any value to consumers and would result in confusion. 
Furthermore, we did not receive any comments from consumers in support 
of the regulations. We did, however, receive comments from

[[Page 33450]]

consumers expressing their objections to the proposed regulations.
    Accordingly, for the reasons stated above, we are withdrawing 
Notice No. 861.

Drafting Information

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

Authority and Issuance

    This document is issued under the authority in 27 U.S.C. 205.

    Signed: April 29, 1999.
John W. Magaw,
Director.
    Approved: June 4, 1999.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary (Regulatory, Tariff and Trade 
Enforcement).
[FR Doc. 99-15944 Filed 6-22-99; 8:45 am]
BILLING CODE 4810-31-P