[Federal Register Volume 71, Number 220 (Wednesday, November 15, 2006)]
[Rules and Regulations]
[Pages 66454-66455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-19231]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-55]
RIN 1513-AB32


Los Carneros Viticultural Area; Technical Amendment (2006R-224P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

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SUMMARY: In this Treasury decision, the Alcohol and Tobacco Tax and 
Trade Bureau makes a technical amendment to its regulations to clarify 
the viticultural significance of the terms ``Los Carneros'' and 
``Carneros'' in relation to the existing Los Carneros viticultural 
area.

DATES: Effective Date: November 15, 2006.

FOR FURTHER INFORMATION CONTACT: N. A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., 
No. 158, Petaluma, CA 94952; phone 415-271-1254.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (the FAA 
Act, 27 U.S.C. 201 et seq.) requires that alcohol beverage labels 
provide consumers with adequate information regarding product identity 
and prohibits the use of misleading information on those labels. The 
FAA Act also authorizes the Secretary of the Treasury to issue 
regulations to carry out its provisions. The Alcohol and Tobacco Tax 
and Trade Bureau (TTB) administers these regulations.
    Part 4 of the TTB regulations (27 CFR part 4) allows the 
establishment of definitive viticultural areas and the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains 
the list of approved viticultural areas.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographic features, the boundaries 
of which have been recognized and defined in part 9 of the regulations. 
These designations allow vintners and consumers to attribute a given 
quality, reputation, or other characteristic of a wine made from grapes 
grown in an area to its geographic origin. The establishment of 
viticultural areas allows vintners to describe more accurately the 
origin of their wines to consumers and helps consumers to identify 
wines they may purchase. Establishment of a viticultural area is 
neither an approval nor an endorsement by TTB of the wine produced in 
that area.

Los Carneros Viticultural Area

Background

    The Bureau of Alcohol, Tobacco and Firearms (ATF), the predecessor 
agency of TTB, established the Los Carneros viticultural area effective 
on September 19, 1983, in T.D. ATF-142, published in the Federal 
Register on August 18, 1983 (48 FR 37365). The establishment of the Los 
Carneros viticultural area is codified, and its boundary is described, 
in the TTB regulations at 27 CFR 9.32.
    The ``Evidence of Name'' discussion in the preamble of T.D. ATF-142 
states that the names ``Los Carneros'' and ``Carneros'' are generally 
used interchangeably. The 1983 final rule document explains that ATF 
approved many labels over a period of more than ten years that simply 
used the name ``Carneros.'' Also, ATF noted that the Spanish word 
``los'' translates to ``the'' in English. ATF therefore, in this 
specific case, determined that ``Carneros'' and ``Los Carneros'' are 
not different names, but rather are equivalent forms of the same name. 
Consequently, ATF concluded that either ``Los Carneros'' or 
``Carneros'' should be allowed for use on labels and in advertising to 
refer to the Los Carneros viticultural area.
    Currently, paragraph (a) of Sec.  9.32, states, ``The name of the 
viticultural area described in this section is `Los Carneros.' '' To 
clarify that the ``Los Carneros'' and ``Carneros'' names both have the 
same and equal viticultural significance in the context of this

[[Page 66455]]

viticultural area, TTB is amending paragraph (a) of 27 CFR 9.32. This 
technical amendment clarifies the fact that either ``Los Carneros'' or 
``Carneros'' standing alone may be used as the name of the viticultural 
area, and that both terms are viticulturally significant for the 
purposes of part 4 of the TTB regulations.

Impact on Current Wine Labels

    This technical amendment to the Los Carneros viticultural area does 
not affect currently approved wine labels that use the ``Los Carneros'' 
or ``Carneros'' names. Part 4 of the TTB regulations prohibits any 
label reference on a wine that indicates or implies an origin other 
than the wine's true place of origin. For a wine to be eligible to use 
as an appellation of origin a viticultural area name or other term 
specified as being viticulturally significant in part 9 of the TTB 
regulations, at least 85 percent of the wine must be derived from 
grapes grown within the area represented by that name or other term, 
and the wine must meet the other conditions listed in 27 CFR 
4.25(e)(3). Different rules apply if a wine has a brand name containing 
a viticultural area name or other viticulturally significant term that 
was used as a brand name on a label approved before July 7, 1986. See 
27 CFR 4.39(i)(2) for details.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do 
not apply.

Inapplicability of Prior Notice and Comment and Delayed Effective Date 
Procedures

    Because this regulatory action merely codifies an existing policy 
adopted in 1983 as part of a prior rulemaking action that included a 
public notice and comment period, TTB has determined that no notice of 
proposed rulemaking and public comment period are required under 5 
U.S.C. 553(b). For the same reason, this final rule is not subject to 
the delayed effective date requirement of 5 U.S.C. 553(d).

Executive Order 12866

    This final rule is not a significant regulatory action as defined 
by Executive Order 12866, 58 FR 51735. Therefore, it requires no 
regulatory assessment.

Drafting Information

    N. A. Sutton of the Regulations and Rulings Division drafted this 
notice.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

    For the reasons discussed in the preamble, we amend 27 CFR, chapter 
1, part 9, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Section Sec.  9.32 is amended by revising paragraph (a) to read as 
follows:


Sec.  9.32  Los Carneros.

    (a) Name. The name of the viticultural area described in this 
section is ``Los Carneros''. ``Carneros'' may also be used as the name 
of the viticultural area described in this section. For purposes of 
part 4 of this chapter, ``Los Carneros'' and ``Carneros'' are terms of 
viticultural significance.
* * * * *

    Signed: October 2, 2006.
John J. Manfreda,
Administrator.
    Approved: October 13, 2006.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
 [FR Doc. E6-19231 Filed 11-14-06; 8:45 am]
BILLING CODE 4810-31-P