[Federal Register Volume 68, Number 127 (Wednesday, July 2, 2003)]
[Rules and Regulations]
[Pages 39454-39455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16563]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 4

[TTB T.D.-2; Ref. Notice No. ATF-953]
RIN 1512--AC63


Amelioration of Fruit and Agricultural Wines; Technical 
Amendments (2001R-197P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.

ACTION: Treasury decision, final rule.

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SUMMARY: The Treasury Department and its Alcohol and Tobacco Tax and 
Trade Bureau are correcting an error in the wine labeling regulations 
regarding the amelioration of fruit (non-grape) and agricultural wines. 
The Bureau is also making a number of technical corrections to the wine 
labeling regulations.

EFFECTIVE DATE: Effective September 2, 2003.

FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco 
Tax and Trade Bureau, Regulations and Procedures Division, PO Box 
18152, Roanoke, Virginia 24014; telephone (540) 344-9333.

SUPPLEMENTARY INFORMATION:

Impact of the Homeland Security Act on Rulemaking

    Effective January 24, 2003, the Homeland Security Act of 2002 
divided the Bureau of Alcohol, Tobacco and Firearms (ATF) into two new 
agencies, the Alcohol and Tobacco Tax and Trade Bureau (TTB) in the 
Department of the Treasury and the Bureau of Alcohol, Tobacco, Firearms 
and Explosives in the Department of Justice. Regulation of wine 
labeling is the responsibility of the new TTB. References to ATF in 
this document relate to events that occurred prior to January 24, 2003, 
or to functions that the Bureau of Alcohol, Tobacco, Firearms and 
Explosives continues to perform.

Background

    The Alcohol and Tobacco Tax and Trade Bureau administers 
regulations published in chapter I of title 27 CFR. In a recent review 
of part 4 of this chapter, Labeling and Advertising of Wine, we noted 
an error at Sec.  4.22(b)(5) regarding the amelioration of fruit (non-
grape) and agricultural wines. We are correcting this error and making 
several other technical amendments to the wine labeling regulations in 
part 4.

Amelioration Error

    The regulations at Sec.  4.22(b)(5) state that fruit (non-grape) 
and agricultural wines may be treated with sugar or water in excess of 
the quantities prescribed for their standards of identity without TTB 
viewing such treatment as an alteration of class and type, if, among 
other conditions, ``the content of natural acid is not less than 7.5 
parts per thousand.'' [Italics added.] This limitation of 7.5 parts per 
thousand is incorrect. Pursuant to 26 U.S.C. 5383 and 5384, the correct 
minimum acid level should be 7.69 parts per thousand.

[[Page 39455]]

This level is correctly stated in Sec.  24.178(b)(3) as 7.69 grams per 
liter. ``Grams per liter'' is equivalent to ``parts per thousand.'' In 
order to make these regulations accurate and consistent, we are 
amending the minimum acid limitation in Sec.  4.22(b)(5) to 7.69 grams 
per liter.

Technical Amendments

    We have identified a typographical error at Sec.  4.21(h)(2), the 
standard of identity for imitation and substandard or other than 
standard wine. The phrase ``other than standard wine'' has been omitted 
from this section. The corrected regulation will read as follows:
    (2) ``Substandard wine'' or ``other than standard wine'' shall bear 
as a part of its designation the words ``substandard'' or ``other than 
standard,'' * * *. [Addition in italics.]
    We have also identified two technical errors at Sec.  4.30(a). Both 
the first and second sentences of this section use the word ``article'' 
to refer to regulatory subparts. ``Article'' was the term used for 
subparts when the wine labeling regulations were written in 1935. Later 
revisions replaced ``article'' with ``subpart,'' but these two 
instances were overlooked. We are correcting this oversight.
    We are also removing three obsolete sections from part 4. All three 
have been replaced with newer sections, and their requirements have 
been obsolete for years.
    [sbull] Sec.  4.25, Appellation of origin, obsolete since January 
1, 1983, has been replaced with Sec.  4.25a.
    [sbull] Sec.  4.35, Name and address, obsolete since July 28, 1994, 
has been replaced with Sec.  4.35a.
    [sbull] Sec.  4.72, Standards of fill, obsolete since January 1, 
1979, has been replaced with Sec.  4.73.
    We are assigning the old numbers to the newer sections to improve 
the organization of part 4. We believe that removing these obsolete 
sections will make it much easier for readers to find current 
requirements.

Notice No. 953

    ATF published Notice No. 953 on October 3, 2002, proposing to make 
the corrections and technical amendments described above. No comments 
were received. Accordingly, we are now finalizing the proposed 
amendments.

Regulatory Analyses and Notices

Does the Paperwork Reduction Act Apply to This Final Rule?

    We propose no requirement to collect information. Therefore, the 
provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 
35, and its implementing regulations, 5 CFR part 1320, do not apply.

How Does the Regulatory Flexibility Act Apply to This Final Rule?

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. We expect no 
negative impact on small entities. We are not imposing any new 
requirements. Accordingly, the Regulatory Flexibility Act does not 
require a regulatory flexibility analysis.

Is This a Significant Regulatory Action as Defined by Executive Order 
12866?

    This is not a significant regulatory action as defined by Executive 
Order 12866. Therefore, the order does not require a regulatory 
assessment.

Drafting Information

    The principal author of this document is Jennifer Berry, 
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade 
Bureau.

List of Subjects in 27 CFR Part 4

    Advertising, Customs duties and inspection, Imports, Labeling, 
Packaging and containers, Reporting and recordkeeping requirements, 
Trade practices, Wine.

Authority and Issuance

0
For the reasons discussed in the preamble, we are amending 27 CFR part 
4 as follows:

PART 4--LABELING AND ADVERTISING OF WINE

0
1. The authority citation for 27 CFR part 4 continues to read as 
follows:

    Authority: 27 U.S.C. 205, unless otherwise noted.


0
2. Amend Sec.  4.21 by revising paragraph (h)(2) introductory text to 
read as follows:


Sec.  4.21  The standards of identity.

* * * * *
    (h) * * *
    (2) ``Substandard wine'' or ``other than standard wine'' shall bear 
as a part of its designation the words ``substandard'' or ``other than 
standard,'' and shall include:
* * * * *

0
3. Revise Sec.  4.22(b)(5) to read as follows:


Sec.  4.22  Blends, cellar treatment, alteration of class or type.

* * * * *
    (b) * * *
    (5) Treatment of any class or type of wine for which a standard of 
identity is prescribed in this subpart with sugar or water in excess of 
the quantities specifically authorized by such standards:
    Provided, That the class or type thereof shall not be deemed to be 
altered:
    (i) Where such wine (other than grape wine) is derived from fruit 
or other agricultural products having a high normal acidity, if the 
total solids content is not more than 22 grams per 100 cubic 
centimeters and the content of natural acid is not less than 7.69 grams 
per liter, and
    (ii) Where such wine is derived exclusively from fruit or other 
agricultural products the normal acidity of which is 20 parts or more 
per thousand, if the volume of the resulting product has been increased 
not more than 60 percent by the addition of sugar and water solution 
for the sole purpose of correcting natural deficiencies due to such 
acidity and (except in the case of such wine when produced from fruit 
or berries other than grapes) there is stated as part of the class and 
type designation the phrase ``Made with over 35 percent sugar 
solution.''
* * * * *
0
4. Remove Sec.  4.25.

0
5. Redesignate Sec.  4.25a as Sec.  4.25.

0
6. Amend Sec.  4.30(a) by removing the word ``article'' where it 
appears and replacing it with the word ``subpart''.
0
7. Remove Sec.  4.35.

0
8. Redesignate Sec.  4.35a as Sec.  4.35.

0
9. Remove Sec.  4.72.
0
10. Redesignate Sec.  4.73 as Sec.  4.72.

    Signed: March 26, 2003.
John J. Manfreda,
Acting Administrator.
    Approved: June 4, 2003.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 03-16563 Filed 7-1-03; 8:45 am]
BILLING CODE 4810-31-P