[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Rules and Regulations]
[Pages 59445-59464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20712]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 19, 20, 21, 27, and 28

[Docket No. TTB-2013-0005; T.D. TTB-140; Re: Notice No. 136]
RIN 1513-AB59


Reclassification of Specially Denatured Spirits and Completely 
Denatured Alcohol Formulas and Related Amendments

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

ACTION: Final rule; Treasury decision.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau is amending its 
regulations concerning denatured alcohol and products made with 
industrial alcohol. The amendments eliminate outdated specially 
denatured spirits formulas from the regulations, reclassify some 
specially denatured spirits formulas as completely denatured alcohol 
formulas, and issue some new general-use formulas for manufacturing 
products with specially denatured spirits. The amendments remove 
unnecessary regulatory burdens on the industrial alcohol industry, as 
well as on TTB, and align the regulations with current industry 
practice. The amendments also make other improvements and 
clarifications, as well as a number of minor technical changes and 
corrections to the regulations.

DATES: This final rule is effective October 31, 2016.

FOR FURTHER INFORMATION CONTACT: Karen Welch, Alcohol and Tobacco Tax 
and Trade Bureau, Regulations and Rulings Division; telephone 202-453-
1039, ext. 046; email [email protected].

SUPPLEMENTARY INFORMATION: 

Authority and Background

Internal Revenue Code

    Chapter 51 of the Internal Revenue Code of 1986 (IRC), 26 U.S.C. 
chapter 51, contains excise tax and related provisions concerning 
distilled spirits used for both beverage and nonbeverage purposes. The 
IRC imposes an excise tax

[[Page 59446]]

rate of $13.50 per proof gallon on distilled spirits (26 U.S.C. 5001). 
Under section 5006(a) of the IRC (26 U.S.C. 5006(a)) the excise tax on 
distilled spirits is generally determined at the time the distilled 
spirits are withdrawn from the bonded premises of a distilled spirits 
plant.
    However, section 5214(a) of the IRC authorizes, subject to 
regulations prescribed by the Secretary of the Treasury, the following 
two types of spirits to be withdrawn free of tax:
     Spirits that have been ``denatured'' by the addition of 
materials that make the spirits unfit for beverage consumption; and
     Undenatured spirits for certain governmental, educational, 
medical, or research purposes.
    Section 5214(a)(1) of the IRC permits the withdrawal of denatured 
spirits free of tax for:
     Exportation;
     Use in the manufacture of a definite chemical substance, 
where such distilled spirits are changed into some other chemical 
substance and do not appear in the finished product; or
     Any other use in the arts or industry, or for fuel, light, 
or power, except that, under 26 U.S.C. 5273(b), denatured spirits may 
not be used in the manufacture of medicines or flavors for internal 
human use where any of the spirits remain in the finished product, and, 
under section 5273(d), denatured spirits may not be withdrawn or sold 
for beverage purposes.
    The IRC authorizes the Secretary of the Treasury to prescribe 
regulations regarding the production, warehousing, denaturing, 
distribution, sale, export, and use of industrial alcohol in order to 
protect the revenue (26 U.S.C. 5201), and to regulate materials that 
are suitable to denature distilled spirits (26 U.S.C. 5241 and 5242). 
Section 5242 states that denaturing materials shall be such as to 
render the spirits with which they are admixed unfit for beverage or 
internal medicinal use and that the character and quantity of 
denaturing materials used shall be as prescribed by the Secretary by 
regulations. Furthermore, section 5273(a) of the IRC requires that any 
person using specially denatured spirits (which is defined in the 
following section of this document) to manufacture products:

    * * * shall file such formulas and statements of process, submit 
such samples, and comply with such other requirements, as the 
Secretary shall by regulations prescribe, and no person shall use 
specially denatured distilled spirits in the manufacture or 
production of any article until approval of the article, formula, 
and process has been obtained from the Secretary.\1\
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    \1\ Other sections of the IRC relating to denatured spirits set 
forth requirements pertaining to the taxation and manufacture of 
distilled spirits, the withdrawal of distilled spirits free of tax 
or without payment of tax, the importation and exportation of 
distilled spirits, the issuance of permits for industrial alcohol 
users and dealers, the sale and use of industrial alcohol, and the 
recovery of potable alcohol from industrial alcohol (see 26 U.S.C. 
5002 through 5008, 5061, 5062, 5101, 5111, 5112, 5131, 5132, 5181, 
5204, 5214, 5232, 5235, 5271, 5273, and 5313).
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Regulation of Denatured Spirits

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers 
chapter 51 of the IRC pursuant to section 1111(d) of the Homeland 
Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has 
delegated various authorities through Treasury Department Order 120-01 
(dated December 10, 2013, superseding Treasury Order 120-01 (Revised), 
``Alcohol and Tobacco Tax and Trade Bureau,'' dated January 24, 2003), 
to the TTB Administrator to perform the functions and duties in the 
administration and enforcement of this law.
    Regulations pertaining specifically to denatured spirits are found 
in 27 CFR part 20 (Distribution and use of denatured alcohol and rum) 
and part 21 (Formulas for denatured alcohol and rum). Certain 
provisions in TTB's regulations in 27 CFR part 19 (Distilled spirits 
plants), part 27 (Importation of distilled spirits, wines, and beer), 
and part 28 (Exportation of alcohol) also concern denatured spirits. 
Denatured spirits are spirits to which denaturants--which are materials 
that make alcoholic mixtures unfit for beverage or internal human 
medicinal use--have been added in accordance with 27 CFR part 21. TTB 
approves denaturants if the denaturants: (1) Make the spirits unfit for 
beverage or internal human medicinal use (26 U.S.C. 5242 and 27 CFR 
21.11), (2) are adequate to protect the Federal excise tax revenue (27 
CFR 21.91), and (3) are suitable for the intended use of the denatured 
spirits (26 U.S.C. 5242).\2\
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    \2\ In most cases, spirits used for industrial purposes are 
``alcohol,'' which in this context means a type of spirits distilled 
at more than 160 degrees of proof and substantially neutral in 
character, lacking the taste, aroma, and other characteristics 
generally attributed to whisky, brandy, rum, or gin. (27 CFR 
19.487(a)(1).)
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    There are two types of denatured spirits: Completely denatured 
alcohol (C.D.A.) and specially denatured spirits (referred to as 
``S.D.S.'' for purposes of this preamble). C.D.A. jeopardizes the 
revenue less than S.D.S. does--first, C.D.A. is more offensive to the 
taste than S.D.S. and thus C.D.A. is less likely to be used for 
beverage purposes, and second, it is more difficult to separate potable 
alcohol from C.D.A. than it is from S.D.S. For these reasons, the 
withdrawal and use of C.D.A. are subject to less stringent regulatory 
oversight than are the withdrawal and use of S.D.S.
    Title 27 CFR 20.41 provides that permits are required to withdraw, 
deal in, or use S.D.S. The regulations also require that dealers and 
users of S.D.S. maintain specified records and retain invoices (see 27 
CFR 20.262 through 20.268). Under Sec.  20.264(b), users of S.D.S. are 
required to submit an annual report to TTB, and, under Sec.  20.262(d), 
a dealer, as defined in 27 CFR 20.11, when requested by TTB, must 
submit a required accounting of each formulation of new and recovered 
S.D.S. In contrast, under 27 CFR 20.141, no permits are required to use 
or distribute C.D.A. (with the exception of recovery for reuse). A 
person that receives, packages, stores, disposes of, or uses C.D.A. is 
required to maintain records only when specifically requested by TTB 
(see 27 CFR 20.261). The regulations do not provide any reporting 
requirements for persons that use or deal in C.D.A.
    The regulations prescribe formulas for C.D.A. and for S.D.S. C.D.A. 
generally may be sold and used for any purpose (Sec.  20.141), with the 
exception that C.D.A. denatured in accordance with Formula No. 20 is 
restricted to fuel use (27 CFR 21.24). In contrast, S.D.S., which is 
generally used as a raw material or ingredient in the manufacture of 
other products (termed ``articles''), may not be used for any purpose 
not specifically authorized in the regulations. The authorized purposes 
are categorized within ``use codes,'' which are published in the 
regulations in 27 CFR part 21.

Manufacture of Articles With Denatured Spirits

    Both C.D.A. and S.D.S. may be used to manufacture articles, which 
are defined in section 5002(a)(14) of the IRC (26 U.S.C. 5002(a)(14)) 
as ``any substance in the manufacture of which denatured distilled 
spirits are used.'' The manufacture of articles with C.D.A. is 
generally unregulated. By contrast, the manufacture of articles with 
S.D.S. is strictly regulated under 27 CFR part 20, in accordance with 
sections 5271 through 5275 of the IRC (26 U.S.C. 5271-5275). A 
significant aspect of this regulation is the requirement for prior TTB 
approval of all articles made with S.D.S. Such approval is mandated by 
law in section 5273(a) of the IRC (26 U.S.C. 5273(a)), which states, 
``* * * no person shall use specially denatured

[[Page 59447]]

distilled spirits in the manufacture or production of any article until 
approval of the article, formula, and process has been obtained from 
the Secretary.''
    TTB approval of articles takes two forms. First, TTB approves 
specific, proprietary formulas and processes for articles, submitted by 
manufacturers on TTB Form 5150.19, Formula and/or Process for Article 
Made with Specially Denatured Spirits. (TTB encourages industry members 
to submit this form electronically using Formulas Online, which is 
available at www.ttb.gov.) Second, ``general-use formulas,'' which TTB 
generally approves by publishing them in the regulations in 27 CFR part 
20, are approved formulas for articles. General-use formulas may be 
used by any manufacturer that has a TTB permit to use S.D.S. in the 
manufacture of articles. Each general-use formula authorizes the 
production of only a specific type of article. Under Sec.  20.111, 
manufacturers of articles produced pursuant to general-use formulas are 
not required to obtain specific formula approval from TTB on TTB Form 
5150.19. Thus, the regulatory burden is lighter on manufacturers 
producing articles pursuant to general-use formulas than on 
manufacturers producing articles pursuant to other formulas that 
prescribe S.D.S. (In fiscal year 2015, TTB received 1,163 formula 
applications on TTB Form 5150.19.)

Terminology

    TTB is providing the following definitions to assist in 
comprehension of this final rule:
     An article is any substance or preparation manufactured 
using denatured spirits.
     Completely Denatured Alcohol (C.D.A.) is alcohol that has 
been denatured under a formula specified in subpart C of 27 CFR part 
21. Only a registered distilled spirits plant may produce C.D.A. TTB 
and industry generally refer to formulations of C.D.A. by the formula 
number. For example, a formulation produced in accordance with C.D.A. 
Formula No. 20 is simply referred to as ``C.D.A. 20.'' To reflect the 
common parlance, this same shorthand is used throughout this document.
     A formula is an instruction for manufacturing a product, 
and is analogous to a recipe that a cook follows. This document refers 
to two broad types of formulas: denatured alcohol formulas and article 
formulas. Denatured alcohol formulas specify the instructions for 
producing either S.D.S (as specified in 27 CFR part 21 subpart D) or 
C.D.A. (as specified in 27 CFR part 21 subpart C). Article formulas 
include both formulas approved individually by TTB on TTB Form 5150.19 
and general-use formulas (as specified in 27 CFR 20.112 through 
20.119).
     A formulation is a physical product manufactured in 
accordance with a formula, and is analogous to a cooked meal that has 
been prepared using a recipe. The word ``formulation'' can refer to 
S.D.S., C.D.A., or an article.
     A general-use formula is a formula for making a certain 
type of article that is prescribed by 27 CFR 20.112 through 20.119, 
approved by TTB as an alternate method, or published as a TTB ruling. 
Specific formula approval by TTB on Form 5150.19 is not required for an 
article made pursuant to a general-use formula.
     Specially Denatured Alcohol (S.D.A) is alcohol that has 
been denatured following a formula specified in subpart D of 27 CFR 
part 21. A formulation of S.D.A. may be used only for the uses 
specified for the corresponding formula in 27 CFR part 21.
     Specially Denatured Rum (S.D.R.) is a rum that has been 
denatured following the formula specified in subpart D of 27 CFR part 
21. S.D.R. may be used only for the uses specified for that formula in 
27 CFR part 21.
     Specially Denatured Spirits (S.D.S.) are specially 
denatured alcohol (S.D.A.) and/or specially denatured rum (S.D.R.). 
Only a registered distilled spirits plant may produce S.D.S. TTB and 
industry generally refer to formulations of S.D.S. by the formula 
number. For example, a formulation produced in accordance with S.D.A. 
Formula No. 40-B is simply referred to as ``S.D.A. 40-B.'' To reflect 
the common parlance, this same shorthand is used throughout this 
document.

Notice of Proposed Rulemaking

    On June 27, 2013, TTB published Notice No. 136 in the Federal 
Register (78 FR 38628) to propose several changes to the regulations to 
ease burdens on industry members and on TTB, as well as other 
improvements and clarifications. While a more detailed description of 
those proposals can be found in Notice No. 136, TTB provides a general 
summary below:

Removal of Certain S.D.A. Formulas

    In Notice No. 136, TTB proposed to remove, from part 21, 16 S.D.A. 
formulas that do not appear to be in use--specifically, S.D.A. Formula 
Nos. 2-C, 3-B, 6-B, 17, 20, 22, 23-F, 27, 27-A, 27-B, 33, 38-C, 39, 39-
A, 42, and 46. In addition to proposing to remove those 16 formulas, 
TTB also proposed to remove references to those formulas from part 21, 
as well as references to, and any specifications for, denaturants that 
are prescribed by those 16 formulas and are not mentioned in other 
formulas.

Reclassification of Certain S.D.A. Formulas as C.D.A. Formulas

    TTB identified two S.D.A. formulas that TTB could reclassify as 
C.D.A. formulas, because it would be very difficult to separate the 
denaturant from the alcohol in the resulting formulation. TTB proposed 
to reclassify S.D.A. Formula Nos. 12-A and 35 as C.D.A. formulas by 
removing 27 CFR 21.40 and 21.61 and by adding new 27 CFR 21.21a and 
21.25 respectively. TTB also proposed to remove other references to 
these two S.D.A. formulas from part 21.

General-Use Formula for Articles Made With Certain S.D.A. Formulations

    TTB also determined that it would be appropriate to issue a new, 
multi-purpose general-use formula for any appropriate articles made 
with one or more of 15 S.D.A. formulations that TTB identified as being 
appropriate for the general-use formula. Such a general-use formula 
would alleviate paperwork burdens for both industry members and TTB, 
because the manufacturer of an article produced in accordance with a 
general-use formula is not required to obtain specific formula approval 
from TTB on Form 5150.19. Furthermore, because it would be difficult to 
separate the alcohol from the articles produced using one or more of 
those 15 S.D.A. formulations, the revenue would not be jeopardized. 
Accordingly, TTB proposed to specify S.D.A. Formula Nos. 1, 3-A, 13-A, 
19, 23-A, 23-H, 30, 32, 35-A, 36, 37, 38-D, 40, 40-A, and 40-B in a 
multi-purpose general-use formula in new 27 CFR 20.120.

General-Use Formulas, With Conditions, for Certain Articles Made With 
S.D.A. Formulas

    TTB also identified three S.D.A. formulations that may be used as 
ingredients, subject to certain conditions, in certain general-use 
formulas. Accordingly, TTB proposed:
     To allow the use of S.D.A. 18 in a vinegar general-use 
formula in new 27 CFR 20.121 (which would have as a condition that the 
ethyl alcohol either loses its identity in the vinegar-making process 
or only residual ethyl alcohol within the limit specified in 27 CFR 
20.104 remains);
     To allow the use of S.D.A. 39-C in a new general-use 
formula in 27 CFR 20.122 (which would have as a condition that each 
gallon of finished product contain not less than 2 fluid ounces of 
perfume material); and

[[Page 59448]]

     To provide for the use of S.D.A. 40-C in a pressurized 
container general-use formula in new 27 CFR 20.123 (which would have as 
a condition that the formula only be used in the manufacture of 
products that will be packaged in pressurized containers in which the 
liquid contents are in intimate contact with the propellant and from 
which the contents are not easily removable in liquid form).
    Only the uses that are currently approved for the corresponding 
S.D.A. formula in part 21 would be allowed under each of these three 
new general-use formulas.
    TTB also proposed to remove 27 CFR 20.103 from the regulations. 
Section 20.103 requires that articles made with S.D.A. 39-C contain at 
least two fluid ounces of perfume material in each gallon of finished 
product. Because this condition will appear in the general-use formula 
specified in the new Sec.  20.122, and because the new general-use 
formula covers all articles made with S.D.A. 39-C, the condition is no 
longer needed in Sec.  20.103.

Additional Changes to Formulas

    In addition to the changes discussed above, TTB proposed to:
     Create a general-use formula for duplicating fluids and 
ink solvents specifying S.D.A. 1, 3-A, and 3-C in new 27 CFR 20.124; 
and
     Amend the proprietary solvents general-use formula (27 CFR 
20.113) to also allow the use of S.D.A. 3-C in making proprietary 
solvents.
    TTB also proposed to remove benzene--which the U.S. Environmental 
Protection Agency (EPA) has designated in its regulations as a 
hazardous air pollutant under the Clean Air Act (40 CFR 61.01(a))--as a 
denaturant prescribed in S.D.A. Formula No. 2-B (27 CFR 21.33), and to 
exclude benzene from the denaturants prescribed by the new C.D.A. 
Formula No. 12-A in proposed Sec.  21.21a. While TTB also proposed to 
remove benzene from the list of authorized denaturants in 27 CFR 
21.151, TTB did not propose to remove the specifications for benzene 
contained in 27 CFR 21.97. TTB will remove Sec.  21.97 in this rule 
because the benzene specifications are no longer needed.

Other Substantive Changes

    In addition to the changes to the S.D.S. and C.D.A formulas, 
denaturant specifications, and general-use formulas, TTB also proposed 
the following changes to the regulations to provide greater flexibility 
to industry members:
     To clarify the regulations relating to the destruction of 
S.D.S. or recovered alcohol, TTB proposed to amend 27 CFR 20.222 to 
state that destruction of recovered material that is not sufficiently 
denatured to meet the formula specifications of an article must be done 
by the original manufacturer, a distilled spirits plant, or a facility 
that possesses an S.D.S. dealer's permit.
     TTB proposed to amend 27 CFR 20.63 to allow any permittee 
to adopt, for use at any of its plants, any formula previously approved 
for use at another of its plants, or any formula previously approved 
for its parent or wholly-owned subsidiary.
     TTB proposed to amend Sec.  20.102 to except bay rum, 
alcoholado, and alcoholado-type toilet waters produced under an 
approved formula and endorsed ``For Export Only'' from the requirement 
that they be produced from the materials specified in that section.
     To make the regulations on reagent alcohol less 
restrictive, TTB proposed to amend 27 CFR 20.117 to allow permittees 
who have a legitimate use for reagent alcohol in manufacturing to 
receive it for that purpose, but only from distilled spirits plants and 
S.D.S. user or dealer permittees. TTB also proposed to amend Sec.  
20.117(a) to provide for treatment of reagent alcohol as S.D.A. when 
distributed for use in manufacturing.
     TTB proposed to amend 27 CFR 20.134 to allow containers of 
articles to either (1) bear a label or (2) have the required 
information etched or printed directly on the containers, since the 
technology now exists to etch or print information directly on 
containers.
     TTB proposed to amend the regulations by adding a new 27 
CFR 20.183 which would allow for the exportation of most S.D.S. 
formulations by dealers provided that the S.D.S. conforms to a formula 
specified in part 21 of the TTB regulations, that the exportation is to 
a country, the laws of which allow the importation of such spirits, and 
that the dealer notifies TTB of the exportation.
     TTB proposed to add new Sec.  20.193 (27 CFR 20.193) to 
allow for the export of articles that would not be approved for 
domestic distribution. Previously, TTB and its predecessor agency, the 
Bureau of Alcohol, Tobacco, and Firearms (ATF), provided for such 
exports on individual bases as alternate methods or procedures.

Clarifying and Technical Changes

    In Notice No. 136, TTB proposed several technical changes, as well 
as changes to clarify the regulations, and TTB is finalizing those 
changes in this rulemaking.

Comments Received and TTB Responses

    TTB received a total of four comment submissions in response to 
Notice No. 136, from Archer Daniels Midland Company (ADM) (Comment 1), 
an individual who works in industry (Comment 2), Videojet Technologies, 
Inc. (``Videojet'') (Comments 3a through 3d), and the Renewable Fuels 
Association (RFA) (Comment 4). All comments appear on 
``Regulations.gov,'' the Federal Rulemaking portal, at http://www.regulations.gov, in Docket No. TTB-2013-0005.

Comment 1

    ADM's comment submission (Comment 1) included nine specific 
comments. One of those comments expressed support for the clarification 
regarding the importation of denatured spirits and fuel alcohol in 
Sec.  27.222. ADM's eight other comments, and TTB's responses, are as 
follows:
     ADM comment: ADM stated that the current general-use 
formulas (Sec. Sec.  20.112 through 20.118) ``are prescriptive in that 
they detail what denaturants and amounts must be added to the 
applicable S.D.A.,'' but the general-use formula proposed in Sec.  
20.120 is ``less prescriptive in that it only states that an additional 
denaturant must be added.'' ADM noted their concern that the proposed 
formula could be misinterpreted, which would result in inadvertent 
noncompliance.
    TTB response: General-use formulas do not specify denaturants that 
must be used in producing an article. Rather, they specify which type 
of S.D.A. must be used to produce the article. It is the S.D.A. that 
contains the denaturants, per the S.D.A. formula provided in 27 CFR 
part 21. Some of the general-use formulas also specify additional 
ingredients that must be used, but not all of the existing general use-
formulas specify exact quantities of additional ingredients. For 
example, the existing tobacco flavor general-use formula (Sec.  20.114) 
only requires the use of S.D.A. Formula No. 4 or S.D.R. Formula No. 4 
and ``sufficient flavors,'' and the existing ink general-use formula in 
Sec.  20.115 only requires the use of one of several specified S.D.A. 
formulations and ``sufficient pigments, dyes, or dyestuffs.'' The 
permissiveness of the general-use formula proposed in the new Sec.  
20.120 is consistent with TTB's longstanding approach. This approach 
provides manufacturers with a degree of flexibility in producing 
articles--which minimizes the paperwork burden

[[Page 59449]]

imposed on both manufacturers and TTB--while still protecting the 
revenue. Therefore, TTB will finalize the general-use formula in Sec.  
20.120 as proposed.
     ADM comment: ADM noted that the names of existing general-
use formulas describe the type of article that is produced in 
accordance with the general-use formula. ADM recommended that TTB 
assign a similar type of name to the general-use formula proposed in 
new Sec.  20.120.
    TTB response: Many kinds of articles may be produced in accordance 
with the general-use formula proposed in new Sec.  20.120, making it 
impractical to assign a name to the general-use formula based on the 
resulting articles. However, TTB has reconsidered calling the general-
use formula the ``General-use formula for articles made with S.D.A. 1, 
3-A, 13-A, 19, 23-A, 23-H, 30, 32, 35-A, 36, 37, 38-D, 40, 40-A, or 40-
B,'' and instead has determined that ``Multi-purpose general-use 
formula'' is less cumbersome. Accordingly, TTB has changed the name of 
that general-use formula to ``Multi-purpose general-use formula'' in 
this document.
     ADM comment: ADM believes that the lists of ``Authorized 
Uses'' for the various S.D.A. formulas 27 CFR part 21--which are listed 
in Sec.  21.141 and in section (b) of each section of part 21 subpart 
D--are overly lengthy, overly specific, and in some cases redundant or 
repetitive. ADM asked that TTB limit the ``Authorized Uses'' lists to 
more general usage categories such as ``ingredient in personal care 
product'' or ``process aid in food production.''
    TTB response: Though TTB sees the value in revising the lists of 
``Authorized Uses,'' such a revision is outside the scope of the 
regulatory changes published in the Notice No. 136. TTB will consider 
such revisions for a future rulemaking.
     ADM comment: ADM echoed one of the comments made in 
response to Notice No. 83, a comment that TTB discussed in Notice No. 
136. Specifically, the comments relate to TTB's specification of exact 
amounts of denaturants in C.D.A. and S.D.A. formulas. ADM noted that 
``it is not practical to expect and impossible to ensure that the exact 
amounts of denaturants have been added,'' and asked TTB to ``provide 
clarification in the regulations regarding acceptable variability in 
denaturant addition'' by using ``action levels'' in enforcement or 
applying standard rounding rules.
    TTB response: TTB applies a plus or minus five percent tolerance 
when analyzing samples of S.D.A., C.D.A., and articles to determine 
compliance with the formula. TTB also employs standard rounding rules 
when reviewing results of analyses, where a number is rounded up if the 
first digit after the last significant digit is ``5'' or more, and a 
number is rounded down if the first digit after the last significant 
digit is ``4'' or less. For example, if TTB were examining an article 
made pursuant to a formula specifying a mixture of 90 percent by volume 
S.D.A. 3-C and 10 percent by volume n-propyl acetate, taking into 
consideration the plus or minus five percent tolerance, the acceptable 
range of S.D.A. 3-C in the article would be 85.5-94.5 percent by 
volume. If laboratory analysis of the article showed that the article 
contains 85.45 percent S.D.A. 3-C, TTB would round that result to 85.5 
percent, which would be in compliance with the formula. If laboratory 
analysis showed that the article contains 85.44 percent S.D.A. 3-C, TTB 
would round that result to 85.4 percent, which would be out of 
compliance with the formula.
    Accordingly, TTB is adding a new paragraph (d) to both 27 CFR 21.21 
and 21.31 to state the analytical tolerance and the use of standard 
rounding rules. TTB also applies the plus or minus five percent 
tolerance and standard rounding rules when analyzing samples of 
articles that were made pursuant to a formula that specified an exact 
amount of an ingredient, including denatured spirits. Accordingly, TTB 
is revising 27 CFR 20.132 to state the analytical tolerance and the use 
of standard rounding rules. TTB believes that the plus or minus five 
percent tolerance and the application of standard rounding rules 
provide for a reasonable degree of variation.
     ADM comment: ADM asked TTB to consider modifying labeling 
requirements as described in 27 CFR 20.134, concerning the labeling of 
articles, and 20.146, concerning labels on bulk containers of C.D.A., 
because ``it is not general practice to label transport containers with 
product name, manufacturer name, etc.,'' and ``in the case of rail and 
truck tankers, containers are placarded per [Department of 
Transportation (DOT)] regulations and product information is listed on 
shipping paperwork. Any identification beyond that stipulated by the 
DOT for first responders could easily decrease the security of the 
product in transit.''
    TTB response: As ADM stated, TTB did not specifically address this 
labeling issue in Notice No. 136. Therefore, TTB cannot make 
substantive changes to those sections in this document, as they are 
outside the scope of this rulemaking. However, as ADM noted, Sec. Sec.  
20.134 and 20.146 do not specifically address large transport 
containers such as truck tankers, railcars, or barges. TTB notes that 
in 27 CFR 19.495, for bulk conveyances of spirits or denatured 
spirits--which would include containers such as truck tankers, 
railcars, and barges--TTB allows a label containing the information 
required by TTB to be securely attached to the route board or another 
equivalent device. TTB would not object to bulk conveyances of articles 
or C.D.A. having a label in a manner consistent with Sec.  19.495.
     ADM comment: ADM opposed the addition to the regulations 
of specifications for five new denaturants (high octane denaturant 
blend, at Sec.  21.112c; naphtha, at Sec.  21.118b; natural gasoline, 
at Sec.  21.118c; raffinate, at Sec.  21.124a; and straight run 
gasoline, at Sec.  21.130a) for use in fuel ethanol. ADM asserted that, 
because of the specific nature of some of the analytical requirements 
listed with those denaturants, it is not clear that they are 
commercially available. ADM stated that denaturants listed in the 
regulations should be available to all industry members. In addition, 
ADM requested that if TTB finds it necessary to list denaturant 
specifications, TTB publish them someplace other than in the 
regulations, asserting that it is easier to change another type of 
publication than it is the regulations.
    TTB response: Industry members may, under 27 CFR 21.91, request 
that TTB authorize substitute denaturants. To approve a material as a 
denaturant for a denatured alcohol formula, TTB must determine that (1) 
the proposed material, when added to spirits (ethanol), makes the 
ethanol ``unfit for beverage or internal human medicinal use;'' (2) the 
use of the proposed material as a substitute denaturant will be 
adequate to protect the Federal excise tax revenue; and (3) the 
proposed material is suitable for the intended use. If the material 
meets these criteria, TTB will authorize the use of the material as a 
denaturant in making specified C.D.A. or S.D.S. formulations so that 
the requestor and any other interested industry members may use the 
material as a denaturant. In order to provide more flexibility to 
industry, TTB believes that it is appropriate to authorize use of 
denaturants that meet the criteria. We do not specify as a criterion 
that the denaturant must be widely available in the commercial market.
    However, if an industry member believes that TTB should deauthorize 
a particular denaturant, we will consider, based on the criteria stated 
above, a petition submitted by any interested person stating the 
reasons it believes authorization is not appropriate.

[[Page 59450]]

Furthermore, the specification of a denaturant in the regulations does 
not foreclose any interested person from applying for an alternate 
method or procedure or any denaturer from requesting authorization to 
use other denaturants.
    Regarding ADM's comment about publishing the requirements someplace 
other than in the TTB regulations, we recognize that rulemaking can 
sometimes be a lengthy process. However, TTB's current practice 
provides the public with a chance for notice and comment on the 
proposed requirements. After such notice and comment is given, the 
appropriate vehicle for codification is publication in the Code of 
Federal Regulations.
     ADM comment: ADM requested that TTB (1) recognize 
consensus specifications and test methods, such as those maintained by 
ASTM International (``ASTM''), whenever possible, for the denaturants 
listed in part 21, and (2) encourage and participate in a stakeholder 
effort to develop such standards if a consensus standard does not exist 
for a commercially available denaturant. During the comment period, two 
commenters, ADM and Videojet, noted that a particular consensus 
standard appearing in the regulations is obsolete. Thus, they 
recommended that, if TTB cites a consensus standard, the specific 
version of the consensus standard not be included in the citation, 
because standards are issued, updated, and withdrawn on a continual 
basis. ADM provided as an example the denaturant specifications for 
unleaded gasoline, as set out in 27 CFR 21.110, which cite ASTM 
Standard D439-79, but which has been withdrawn by ASTM. ADM asserted 
that TTB should update this reference.
    TTB response: TTB uses consensus standards when appropriate and 
practicable for the Bureau's purpose. When incorporating in regulations 
a consensus standard by reference, a Federal agency must specifically 
identify the incorporated materials and is prohibited from 
incorporating material dynamically. As specified in 1 CFR 51.1(f), 
``[i]ncorporation by reference of a publication is limited to the 
edition of the publication that is approved.''
    TTB agrees that Sec.  21.110 should be amended. Moreover, TTB is 
undertaking a comprehensive review of all the standards incorporated by 
reference in part 21 to ensure that TTB regulations cite to the current 
version of the referenced materials. TTB has determined that it is 
appropriate to make revisions to 27 CFR 21.6, Incorporations by 
reference, and other sections in part 21 that include incorporations by 
reference, not only to update the consensus standard references but 
also to ensure compliance with the Office of the Federal Register's 
rules in 1 CFR part 5, which were recently revised. See 79 FR 66267, 
November 7, 2014. Accordingly, TTB will engage in a separate rulemaking 
to update Sec.  21.6 and the standards incorporated by reference into 
part 21, including the ASTM standard for unleaded gasoline set forth in 
27 CFR 21.110.
     ADM comment: Finally, ADM stated its support for TTB's 
consideration of harmonization of the regulations governing C.D.A. 
Formula No. 20 and the regulations governing fuel ethanol.
    TTB response: TTB will continue to consider such harmonization for 
a future rulemaking with some other proposed changes to the regulations 
governing alcohol fuel plants, which are found in 27 CFR part 19, 
subpart X.

Comment 2

    Loren Lowy, an individual who works in industry, expressed support 
for TTB's designation of S.D.A. Formula No. 3-A as an S.D.A. 
formulation that is appropriate for the new general-use formula in new 
Sec.  20.120, because it will ease the regulatory burden on industry by 
removing the requirement for article formula approval on TTB Form 
5150.19 for articles made with formulations of S.D.A. 3-A. He also 
expressed support for TTB's revision to Sec.  20.63 to expand the 
adoption of formulas by parent or subsidiary corporations.
    Lowy also noted a conflict between the proposed new general-use 
formula in new Sec.  20.120 and the treatment of reagent alcohol in the 
proposed revision to Sec.  20.117. Specifically, Lowy explained that 
there is a contradiction because, under the proposed Sec.  20.120, an 
article formula is not required for any article made with formulations 
of S.D.A. 3-A. However, under the proposed Sec.  20.117, reagent 
alcohol--which is made with 95 parts (by volume) of S.D.A. 3-A, and 5 
parts (by volume) of isopropyl alcohol--is to be treated as S.D.A. 
unless distributed and used in accordance with that section.
    Lowy also posed the following questions regarding the treatment as 
S.D.A. of reagent alcohol that is not distributed and used in 
accordance with the proposed revised Sec.  20.117:
     Whether reagent alcohol in manufacturing would be included 
in the annual S.D.A. usage report;
     If so, whether it would be a separate entry from the 
S.D.A.;
     Whether the report form would change to reflect any 
necessary separate entries; and
     Whether the total volume of reagent alcohol should be 
reported or just the S.D.A. 3-A portion of the reagent alcohol.
    TTB response: The new multi-purpose general-use formula specified 
in Sec.  20.120 requires that any article made pursuant to that 
general-use formula contain sufficient additional ingredients to 
definitely change the composition and character of the S.D.A. used to 
make the article in question, and to ensure that the finished article 
is unfit for beverage or other internal human use and cannot be 
reclaimed or diverted to beverage use. Reagent alcohol does not contain 
such sufficient additional ingredients, and so the multi-purpose 
general-use formula is not applicable. Therefore, TTB is adding 
paragraph (d) to Sec.  20.120 to provide that the multi-purpose 
general-use formula may not be used for the production of any articles 
that conform to another general-use formula in part 20, subpart F. This 
clarification will prevent any other article that is subject to 
restrictions in another general-use formula from being manufactured or 
distributed under the multi-purpose general-use formula without being 
subject to the restrictions of the other general-use formula.
    In response to the commenter's additional questions, TTB notes that 
reagent alcohol used in manufacturing should be included in the annual 
S.D.A. usage report. Because reagent alcohol used in manufacturing is 
to be treated as S.D.A., it would not be a separate entry from S.D.A. 
Thus, the report will not be changed. Again, because reagent alcohol 
used in manufacturing is to be treated as S.D.A., the total volume of 
reagent alcohol should be reported in the annual S.D.A. usage report.

Comment 3a

    Videojet disagreed with the new definition of ``Fit for beverage 
use, or fit for beverage purposes'' in Sec.  20.11, in that it states 
that the determination of fitness or unfitness for beverage use would 
be ``based solely on the composition of the product and without regard 
to extraneous factors such as price, labeling, or advertising.'' 
Accordingly, Videojet requested that TTB remove that portion of the 
definition. Videojet asserted that labeling is definitive because it 
communicates the intended use of each formulation, that consumer use is 
prohibited, and, in some cases, it indicates whether a product is 
poisonous or hazardous to health.

[[Page 59451]]

    TTB response: With limited exceptions, spirits that are fit for 
beverage use are subject to Federal excise tax. Reliance on product 
labeling, rather than product composition, in determining unfitness for 
beverage use could create a significant jeopardy to the revenue. It 
would be possible to evade payment of excise taxes due on distilled 
spirits by labeling the spirits as not intended for beverage use, and 
then diverting them to beverage use. Accordingly, to protect the 
revenue, TTB will finalize the definition of ``Fit for beverage use, or 
fit for beverage purposes'' as proposed in Notice No. 136, which states 
that the determination of fitness or unfitness will be ``based solely 
on the composition of the product and without regard to extraneous 
factors such as price, labeling, or advertising.''

Comment 3b

    Videojet's next comment related to TTB's clarification of Sec.  
20.95, concerning developmental samples of articles. Videojet first 
noted an inconsistency in the proposed text, where it limits the number 
of samples to one per customer, but requires that a record of the 
number of samples sent to each customer be kept. Videojet explained 
that a product test may require more than one container of an article 
(like a printer cartridge filled with ink), which would exceed the 
limitation in Sec.  20.95 that only one sample of each formulation may 
be sent to each customer. Videojet also explained that customers often 
prefer a two-stage approval process for testing a product, which would 
exceed the limitation in Sec.  20.95 that samples be sent on a one-time 
basis.
    TTB response: TTB will retain the limitation of one sample per 
customer and authorize that samples may only be sent on a one-time 
basis, to ensure protection of the revenue. Allowing manufacturers to 
send an unlimited number of samples to customers multiple times would 
effectively allow manufacturers to distribute articles for which there 
is no formula approval. Since many articles will be able to be produced 
under a general-use formula and would not require formula approval on 
TTB Form 5150.19, this limitation will not affect many articles. In 
addition, where articles cannot be produced in accordance with a 
general-use formula, manufacturers may send unlimited numbers of 
samples if they first obtain formula approval on TTB Form 5150.19. 
However, TTB is removing from Sec.  20.95 the requirement that a record 
of the number of samples sent to each customer be kept, since that 
number will not exceed one.

Comment 3c

    Videojet had several detailed comments about TTB's proposed 
revisions to Sec.  20.115 and proposed new Sec. Sec.  20.124 and 
20.120, as follows:
     Videojet comment: Videojet noted an apparent typographical 
error in the proposed revision to Sec.  20.115, which in Notice No. 136 
was proposed to say that the ``ink general-use formula authorizes the 
production of any finished article made with alcohol denatured in 
accordance with S.D.A. Formula No. 1, 3-A, 3-C, 13-A, 23-A, 30, or 32, 
or which . . . [c]ontains pigments, dyes, or dyestuffs sufficient to 
ensure that the article is unfit for beverage use . . . .''
    TTB response: The second use of the word ``or'' in the proposed 
regulation was a typographical error, which TTB is correcting in this 
final rule.
     Videojet comment: Videojet asked that the TTB expand the 
list of S.D.A. formulations that are specified in the ink general-use 
formula in section 20.115, to include S.D.A. Formula Nos. 35-A, 40-B, 
and 45. Videojet also asked that TTB add the use code for inks (use 
code 052) to Sec. Sec.  21.62(b)(1), 21.76(b)(1), and 21.80(b)(1), and 
add references to S.D.A. Formula Nos. 35-A, 40-B, and 45 to the table 
in Sec.  21.141.
    TTB response: TTB has determined that formulations of S.D.A. 
Formula Nos. 35-A and 40-B would be appropriate in the ink general-use 
formula in Sec.  20.115, and would not create a threat to the revenue 
as part of the general-use formula. Because industry members are using 
formulations of S.D.A. Formula Nos. 35-A and 40-B to manufacture inks, 
TTB will add references to those formulas to the list of S.D.A. 
formulations specified in the ink general-use formula in Sec.  20.115. 
However, TTB has determined that it will not add S.D.A. Formula No. 45 
to the general-use formula because that formula--which specifies the 
addition of 300 pounds of refined whole or orange shellac to every 100 
gallons of alcohol--is not, to TTB's knowledge, typically used in 
manufacturing inks, and is currently only authorized for use in 
manufacturing candy glazes. S.D.A. users may continue to seek approval 
from TTB to manufacture ink using formulations of S.D.A. Formula No. 45 
by filing TTB Form 5150.19.
     Videojet comment: As proposed in Notice No. 136, inks 
manufactured in accordance with the general-use formula specified in 
Sec.  20.115 would be required to contain ``pigments, dyes, or 
dyestuffs sufficient to ensure that the article is unfit for beverage 
use.'' Videojet noted that although one or more of those ingredients 
are present in ink, there are other ingredients that may be present 
that may serve to further render the ink unfit for beverage use. 
Accordingly, Videojet asked TTB to require that inks manufactured in 
accordance with the general-use formula contain ``pigments, dyes, or 
dyestuffs, solvents, or other ingredients sufficient to ensure that the 
article is unfit for beverage use.''
    TTB response: TTB agrees that other ingredients used in 
manufacturing ink may render the ink unfit for beverage use. However, 
Videojet's proposed modification to Sec.  20.115 would allow for an ink 
to contain no pigments, dyes, or dyestuffs. Accordingly, TTB will 
modify Sec.  20.115 to require that inks manufactured in accordance 
with the general-use formula contain ``pigments, dyes, or dyestuffs, 
which, alone or in combination with solvents or other ingredients, are 
sufficient to ensure that the article is unfit for beverage use.''
     Videojet comment: Videojet supported the addition of the 
duplicating fluid and ink solvent general-use formula in Sec.  20.124, 
but asked TTB to harmonize the ink general-use formula with the 
duplicating fluid and ink solvent general-use formula because in some 
cases ink and ink solvent must be combined in a printer. Specifically, 
Videojet asked TTB to add S.D.A. 13-A, 23-A, 30, 32, 35-A, 40-B, and 45 
to the list of S.D.A. formulations authorized by the duplicating fluid 
and ink solvent general-use formula.
    TTB response: To reduce the compliance burden on S.D.A. users that 
manufacture duplicating fluids and ink solvents, TTB will add S.D.A. 
13-A, 23-A, 30, 32, 35-A, and 40-B to the list of S.D.A. formulations 
authorized by the duplicating fluid and ink solvent general-use 
formula. TTB will also add use code 485 (miscellaneous solutions) to 
Sec. Sec.  21.41, 21.59, 21.62, and 21.76 to authorize formulations of 
S.D.A. Formula Nos. 13-A, 32, 35-A, and 40-B in the manufacture of 
miscellaneous solutions, and will add S.D.A.13-A, 32, 35-A, and 40-B to 
the entry for use code 485 in the chart in Sec.  21.141. S.D.A. Formula 
Nos. 23-A and 30 are already authorized for use in miscellaneous 
solutions (use code 485). However, TTB has determined not to add S.D.A. 
Formula No. 45 to the general-use formula because that formula is not, 
to TTB's knowledge, typically used in manufacturing duplicating fluids 
or ink solvents, and is currently only authorized for use in 
manufacturing candy glazes. S.D.A. users may continue to seek approval 
from TTB to manufacture ink using formulations of S.D.A. Formula No. 45 
by filing TTB Form 5150.19.

[[Page 59452]]

     Videojet comment: Videojet stated that, while the proposed 
duplicating fluid and ink solvent general-use formula stipulates 
specific further denaturants (n-propyl acetate, isopropyl alcohol, or 
methyl alcohol), ``it is generally not feasible to add [those] specific 
solvents to the ink solvent formulation due to the intrinsic connection 
between the ink formula and the ink solvent formula.'' Accordingly, 
Videojet asked that TTB instead allow for the use of ``pigments, dyes, 
dyestuffs, solvents or other ingredients sufficient to ensure that the 
article is unfit for beverage use'' as an alternative to n-propyl 
acetate, isopropyl alcohol, or methyl alcohol.
    TTB response: TTB often receives requests for formula approval that 
specify the use of n-propyl acetate, isopropyl alcohol, or methyl 
alcohol in duplicating fluids or ink solvents. Therefore, it is 
feasible for at least some industry members to use those ingredients in 
duplicating fluids and ink solvents. The duplicating fluid and ink 
solvent general-use formula also allows the resulting article to 
contain additional ingredients not specified in the general-use 
formula, so a manufacturer is not precluded from adding dyes to the 
solvent. TTB believes that it is appropriate to maintain the 
requirement that duplicating fluids and ink solvents produced in 
accordance with the general-use formula contain n-propyl acetate alone 
or in combination with isopropyl alcohol or methyl alcohol. S.D.A. 
users may still submit requests for formula approval on TTB Form 
5150.19 for articles that do not conform to this general-use formula.
     Videojet comment: Videojet also asked TTB to add S.D.A. 
Formula No. 3-C to the general-use formula in Sec.  20.120 because 
doing so would reduce the regulatory burden on industry and on TTB 
without threatening the revenue.
    TTB response: TTB believes that it would be inappropriate to 
include S.D.A. Formula No. 3-C in the general purpose general-use 
formula in Sec.  20.120. The current and proposed general-use formulas 
that specify S.D.A. 3-C (special industrial solvents, duplicating 
fluids and ink solvents, ink, and toilet preparations) also specify 
certain other ingredients to ensure that the resulting article is unfit 
for beverage use. To ensure adequate protection of the revenue, the 
Bureau believes it is appropriate to continue reviewing formulas for 
other articles made with S.D.A. 3-C.
     Videojet comment: Videojet next asked TTB to authorize the 
use of formulations of S.D.A. Formula Nos. 13-A, 19, 32, and 35-A in 
cleaning solutions.
    TTB response: TTB has received no data to support authorizing the 
use of formulations of S.D.A. Formula Nos. 13-A, 19, 32, and 35-A in 
cleaning solutions. Since 1991, when TTB began its practice of 
electronic recordkeeping, no requests have been received for the use of 
formulations of S.D.A. Formula Nos. 13-A, 19, 32, and 35-A in cleaning 
solutions, which suggests that industry members are not interested in 
those formulations for that purpose. However, TTB will consider 
authorizing those S.D.A. formulations for use in cleaning solutions in 
the future if TTB receives sufficient information to support doing so.
     Videojet comment: Videojet also asked that, in Sec.  
20.120, TTB remove the requirement that only additional ingredients 
other than the denaturants prescribed for the applicable S.D.A. 
formulas be added to the article to definitely change the composition 
and character of the S.D.A. used to make the article and to ensure that 
the finished article is unfit for beverage use.
    TTB response: An article that is made by taking an S.D.A. 
formulation and adding more of the denaturant that was used to make the 
S.D.A. has the same character and very similar composition of the 
S.D.A. Additional ingredients used to manufacture an article in 
accordance with the multi-purpose general-use formula in Sec.  20.120 
must substantially change the nature of the S.D.A. Accordingly, TTB 
will maintain the requirement that an article produced in accordance 
with the multi-purpose general-use formula contain additional 
ingredients beyond the denaturant used in the S.D.A.
     Videojet comment: Finally, Videojet noted that if an 
article is manufactured under the general-use formula specified in 
Sec.  20.120 by combining two S.D.A. formulations and an additional 
ingredient, the article must conform to a use code that is authorized 
for both S.D.A. formulations. In contrast, an article that is 
manufactured by combining one S.D.A. formulation with an intermediate 
ingredient that is itself comprised of the second S.D.A. formulation 
and the additional ingredient, the article would only have to conform 
to a use code that is authorized for the S.D.A. formulation that is not 
used in the intermediate ingredient.
    TTB response: By law (26 U.S.C. 5242), denaturing materials must be 
suitable for the intended use. To help ensure this, TTB will continue 
to require that an article made under the multi-purpose general-use 
formula with multiple S.D.A. formulations conforms to a use code that 
is authorized for all of the S.D.A. formulations used. Manufacturers 
using multiple S.D.A. formulations to produce an article may seek 
formula approval from TTB on TTB Form 5150.19 if the intended use of 
the article is not covered by a use code that is authorized for all of 
the S.D.A. formulations being used. In the case of intermediate 
articles being used in the manufacture of another article, the 
intermediate article must be suitable for that intermediate use.

Comment 3d

    Videojet also raised some concerns related to other national and 
international standards, as follows:
     Videojet comment: Videojet noted that other Federal 
agencies, like the Occupational Safety and Health Administration 
(OSHA), also maintain rules concerning the communication of hazards.
    TTB response: TTB is aware that other Federal agencies maintain 
rules concerning the labeling and handling of certain chemicals, or 
products that contain certain chemicals. Section 20.136 currently notes 
that such rules are implemented by the Consumer Product Safety 
Commission (CPSC), Federal Trade Commission (FTC), and Food and Drug 
Administration (FDA). The labeling requirements specified in TTB's 
regulations for articles that would contain methanol if produced in 
accordance with certain general-use formulas (specifically, the special 
industrial solvents general-use formula, proprietary solvents general-
use formula, reagent alcohol general use formula in Sec. Sec.  20.112, 
20.113, and 20.117, and the proposed duplicating fluid and ink solvent 
general-use formula in Sec.  20.124) were derived from CPSC 
requirements found in 16 CFR 1500.14(b)(4). TTB believes that industry 
will be aided in complying with all applicable labeling regulations if 
TTB refers in its regulations to the applicable labeling regulations of 
other Federal agencies. TTB believes that the best approach is to refer 
to those other applicable Federal labeling requirements in part 20. 
Accordingly, TTB is revising Sec.  20.136 to reference the labeling 
regulations of other Federal agencies, and is removing the labeling 
requirements from Sec. Sec.  20.112, 20.113, 20.117, and 20.124.
     Videojet comment: Videojet also noted that the United 
Nations (UN) Globally Harmonized System of Classification and Labelling 
of Chemicals (GHS) uses the acronym ``SDS'' to refer to ``safety data 
sheet.'' Videojet asked TTB to consider whether

[[Page 59453]]

TTB's ``S.D.S.'' acronym for ``specially denatured spirits'' would be 
confusing given the prevalence of the acronym ``SDS'' in the UN GHS.
    TTB response: Many widely used acronyms abbreviate a term despite 
being identical to an acronym that abbreviates a different term. 
Readers can usually determine which term an acronym is abbreviating 
based on the context in which it is being used. Accordingly, TTB will 
continue using the abbreviation ``S.D.S.'' for ``specially denatured 
spirits'' in its regulations.

Comment 4

    RFA made several points in its comment submission. The comments, 
and TTB's responses, are as follows:
     RFA comment: RFA expressed support for TTB's effort toward 
a future rulemaking that would harmonize the denaturant specifications 
for C.D.A. Formula No. 20 and fuel alcohol.
    TTB response: As stated above in response to ADM's similar comment, 
TTB will continue to consider such harmonization for a future 
rulemaking.
     RFA comment: RFA, noting the outdated denaturant 
specifications for unleaded gasoline, recommended that TTB base 
denaturant specifications on consensus standards, like those developed 
by ASTM, instead of providing specifications. As mentioned above, RFA 
also recommended that TTB maintain its list of denaturants and the 
specifications for those denaturants in a place other than the 
regulations and update the list as needed, because updating regulations 
is a lengthy process.
    TTB response: As explained above in response to ADM's similar 
comments, under Federal regulations, a Federal agency must identify the 
specific version of the consensus standard incorporated by reference 
into its particular regulations. TTB will engage in a separate 
rulemaking to update references to outdated consensus standards 
appearing in part 21.
    RFA comment: RFA stated that it is important that denaturant 
specifications in the TTB regulations represent a commercially 
available material, and that the authorized denaturants ``conform to 
very stringent requirements of both state and Federal regulations for 
motor fuels and fuel additives.''
    TTB response: Regarding commercial availability, as noted above in 
response to one of ADM's comments, TTB may authorize denaturants that 
conform to certain specifications upon receipt of a petition. If an 
industry member believes that TTB should change or deauthorize a 
particular denaturant or its specifications, the industry member should 
submit to TTB a petition for the change that provides information about 
why TTB should make the change. Regarding conformity with State and 
Federal regulations for motor fuels and fuel additives, TTB tries to be 
consistent with other Federal regulations. As this document explains, 
TTB's statutory authority in regulating denatured alcohol pertains to 
protecting the Federal excise tax revenue. Accordingly, TTB's 
determinations will primarily be based on revenue protection 
considerations. Ultimately, industry members remain responsible for 
ensuring compliance with State and other Federal regulations.
     RFA comment: RFA recommended that TTB remain open to 
approving denaturants of non-hydrocarbon origin.
    TTB response: TTB will consider authorizing denaturants of non-
hydrocarbon origin. Under the authority of 27 CFR 21.91, the 
appropriate TTB officer may, pursuant to written application filed by 
the denaturer, authorize the use of substitute denaturants if such 
substitution will not jeopardize the revenue. An industry member who 
would like TTB to authorize a substitute denaturant should submit a 
request to TTB for authorization of the denaturant pursuant to Sec.  
21.91.
     RFA comment: RFA supported the clarification of 
jurisdiction over imported denatured spirits and fuel alcohol. RFA 
noted that TTB should provide clarity for the regulatory requirements 
in support of unfettered transportation and use of fuel alcohol.
    TTB response: TTB is adding new Sec.  27.222 to the regulations to 
help clarify the regulations regarding the importation of denatured 
spirits. TTB welcomes petitions for additional regulatory changes that 
industry members feel are needed.

TTB Finding

    After careful review of the comments discussed above, TTB is 
finalizing the proposed amendments, with the adjustments explained 
above. In addition, TTB is altering some of the section numbers 
proposed in Notice No. 136 to conform to Office of Federal Register 
policies. Specifically, proposed Sec. Sec.  21.21a, 21.94a, 21.105a, 
21.105b, 21.106a, 21.108a, 21.112a, 21.112b, 21.112c, 21.115a, 21.115b, 
21.118a, 21.118b, 21.118c, 21.121a, 21.124a, and 21.130a are being 
finalized as 27 CFR 21.26, 21.94-T, 21.105-T1, 21.105-T2, 21.106-T, 
21.108-T, 21.112-T1, 21.112-T2, 21.112-T3, 21.115-T1, 21.115-T2, 
21.118-T1, 21.118-T2, 21.118-T3, 21.122, 21.124-T, and 21.130-T. 
Finally, TTB is making a number of technical corrections to existing 
regulations, beyond those that were proposed in Notice No. 136. These 
technical corrections merely update or clarify the application of those 
provisions and do not change the Bureau's interpretation of any 
regulation or the requirements of any recordkeeping provision.
     One technical correction concerns the use of S.D.S. in 
foreign-trade zones. Section 484F of the Customs and Trade Act of 1990, 
Public Law 101-382, 104 Stat. 706, 710, enacted on August 20, 1990, 
amended 19 U.S.C. 81c(c) by eliminating the requirement that specially 
denatured spirits used in a foreign-trade zone come from domestic 
sources. Accordingly, TTB is amending 27 CFR 19.427 to conform with 
this statutory change.
     TTB is updating additional OMB control numbers in 27 CFR 
20.22, 20.56, 20.57, 20.60, 20.61, 20.62, 20.68, 20.142, 20.149, 
20.163, 20.170, 20.171, 20.172, 20.180, 20.192, 20.202, 20.203, 20.212, 
20.216, 20.231, 20.232, 20.234, 20.235, 20.251, 20.252, 20.261, 20.262, 
20.263, and 20.265 to reflect the change from ATF to TTB.
     TTB is amending 27 CFR 20.11 and 20.20 to clarify that 
references to ``TTB Order 1135.20'' are to the most recent version of 
that order, which is not necessarily the original version.
     Typographical errors are corrected in 27 CFR 20.59, 20.93, 
20.100, 20.118, 20.131, 20.163, 21.11, 21.49, 21.64, 21.65, and 21.125.
     In 27 CFR 20.92, the reference to the TTB Bulletin is 
replaced with a reference to TTB's Web site.
     In 27 CFR 20.112 and 20.113, TTB is replacing the 
erroneous cross-reference to 27 CFR 21.106 with the correct cross-
reference 27 CFR 21.107 for the location of a definition of 85 percent 
ester content.
     In 27 CFR 20.118, the reference to ``Bitrex (THS 839),'' 
which is a registered trade name, has been replaced by the generic term 
``denatonium benzoate.''
     In 27 CFR 20.191, the last sentence is removed, since TTB 
Publication 5150.5 is no longer available.
     TTB is amending 27 CFR 21.7 and 21.11 to clarify that 
references to ``TTB Order 1135.21'' are to the most recent version of 
that order, which is not necessarily the original version.
     Finally, TTB is updating the abbreviation for 
``milliliters'' in 20.11 and throughout part 21 from ``ml'' to ``mL'' 
to reflect current usage.

[[Page 59454]]

Regulatory Analyses and Notices

Executive Order 12866

    Certain TTB regulations issued under the IRC, including this one, 
are exempt from the requirements of Executive Order 12866, as 
supplemented and reaffirmed by Executive Order 13563. Therefore, a 
regulatory impact assessment is not required.

Regulatory Flexibility Act

    Pursuant to the requirements of the Regulatory Flexibility Act (5 
U.S.C. chapter 6) TTB certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities. 
The rule updates the regulations to align them with current industry 
practice, clarifies other regulatory provisions, and reduces the 
regulatory burden on the alcohol industry as well as TTB, resulting in 
an estimated 80 percent reduction in the number of article formulas 
submitted to TTB. Thus, the regulatory changes do not create any 
additional requirements or burdens on small businesses, and are 
expected to decrease the regulatory burden on industry members, 
including small entities. Accordingly, a regulatory flexibility 
analysis is not required.
    Pursuant to section 7805(f) of the Internal Revenue Code, TTB 
submitted the notice of proposed rulemaking (Notice No. 136, 78 FR 
38628, June 27, 2013) to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA) for comment on the impact of these 
regulations. The SBA had no comment on the proposed rule.
    Finally, as previously mentioned, TTB is making a number of 
technical corrections to existing regulations in this rulemaking that 
were not proposed in Notice No. 136. TTB has determined, in accordance 
with 5 U.S.C. 553(b)(3)(B) that it is unnecessary and contrary to 
public interest to follow prior public notice and comment procedures 
with respect to the technical corrections, and 5 U.S.C 553(b) does not 
apply.

Paperwork Reduction Act

    The collections of information in the regulations contained in this 
final rule have been previously reviewed and approved by the Office of 
Management and Budget (OMB) in accordance with the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3504(h)) and assigned control numbers 1513-0011, 
1513-0028, 1513-0037, 1513-0061, and 1513-0062. Specific regulatory 
sections in this final rule that contain collections of information are 
27 CFR 19.607, 20.63, 20.95, 20.111, 20.117, 20.133, 20.134, 20.183, 
20.193, 20.222, 20.262, 20.263, and 20.264. An agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information unless it displays a valid control number assigned by OMB.
    Several amendments made in this document reduce information 
collection burdens. Specifically, certain amendments alter 
circumstances under which article manufacturers must obtain formula 
approval using TTB Form 5150.19, Formula and/or Process for Article 
Made with Specially Denatured Spirits. Information collections 
associated with Form 5150.19 are currently approved under OMB control 
number 1513-0011. These amendments reduce required submissions of Form 
5150.19, and thus reduce the total burden hours currently estimated for 
control number 1513-0011 by an estimated 955 burden hours, and an 80 
percent reduction in the number of these forms submitted to TTB.
    Four categories of amendments will reduce required submissions of 
Form 5150.19:
     Addition to part 20 of new sections 27 CFR 20.120 through 
20.124, setting forth five new general-use formulas covering articles 
made with 19 different S.D.A. formulations;
     Amended regulations in part 21 that reclassify S.D.A. 
Formula Nos. 12-A and 35 as C.D.A. formulas;
     Amended 27 CFR 20.113(a) and 20.115, which permit the use 
of additional S.D.A. formulations in the proprietary solvents general-
use formula and ink general-use formula; and
     Amended 27 CFR 20.63, which allows a permittee to adopt, 
for use at a plant where such use is not specifically approved, one of 
the permittee's own article formulas previously approved for use at 
another of the permittee's plants, or to adopt a formula previously 
approved for a parent or wholly-owned subsidiary.
    TTB estimates that, as a result of the amendments, the new annual 
burden hours will be as follows:
     Estimated total annual reporting and/or record keeping 
burden: 239 hours.
     Estimated average annual burden hours per respondent: 0.84 
hours.
     Estimated number of respondents: 285.
     Estimated annual frequency of responses: 1 (one).
    One amendment involves an alteration to the information collection 
currently approved under, OMB control number 1513-0061. The amendment 
to 27 CFR 20.63 allows a permittee to adopt, for use at a plant where 
such use is not specifically approved, one of the permittee's own 
article formulas previously approved for use at another of the 
permittee's plants, or to adopt a formula previously approved for a 
parent or wholly-owned subsidiary. Previous to this rulemaking, 
permittees could adopt formulas under more limited circumstances by 
submitting a certificate of adoption to TTB, which is an information 
collection currently approved under control number 1513-0061. Although 
TTB estimates that the amendment will increase the number of 
certificates of adoption submitted to TTB under Sec.  20.63, it also 
proportionally decreases the number of submissions of Form 5150.19 that 
would have been required absent the amendment. Since the estimated 
average annual burden per respondent relating to certificates of 
adoption approved under control number 1513-0061 is smaller than the 
average annual burden for Form 5150.19 under control number 1513-0011, 
the amendment reduces the overall burden on permittees. TTB estimates 
that, as a result of this amendment, the new annual burden under 
control number 1513-0061 will be as follows:
     Estimated total annual reporting and/or record keeping 
burden: 1,897 hours.
     Estimated average annual burden hours per respondent: 0.5 
hours.
     Estimated number of respondents: 3,794.
     Estimated annual frequency of responses: 1 (one).
    Other amendments to regulatory sections that involve collections of 
information do not impact the burden hours associated with those 
collections. Proposed amendments to 27 CFR 19.607, 20.95, 20.111, 
20.117, 20.133, 20.134, 20.193, 20.222, 20.262, 20.263, and 20.264 
neither increase nor decrease information collections because the 
amendments clarify preexisting regulatory requirements and do not 
otherwise impose new requirements increasing information collection 
burdens. New 27 CFR 20.183 allows S.D.S. dealers to export S.D.S. and 
requires such dealers to complete TTB Form 5100.11. TTB estimated that 
the amendment would not increase submissions of Form 5100.11 because, 
although the amendment allows an additional category of persons to 
export, the amendment is not expected to increase demand for exported 
S.D.S. Thus, the exporters may be different, but the number of 
exportations is not expected to change. Since TTB is only including an 
additional category of persons entitled to export S.D.S., and is not 
increasing information collection burdens associated with exporting 
S.D.S., the proposed amendment will not impact currently estimated

[[Page 59455]]

information collection burdens. Information collections associated with 
the amendments described in this paragraph are currently approved under 
OMB control numbers 1513-0028, 1513-0037, and 1513-0062. TTB estimates 
the annual burden hours under these control numbers are as follows:
    OMB Control Number 1513-0028:
     Estimated total annual reporting and/or record keeping 
burden: 419 hours.
     Estimated average annual burden hours per respondent: 0.76 
hour.
     Estimated number of respondents: 550.
     Estimated annual frequency of responses: 1 (one).
    OMB Control Number 1513-0037:
     Estimated total annual reporting and/or record keeping 
burden: 6,000 hours.
     Estimated average annual burden hours per respondent: 20 
hours.
     Estimated number of respondents: 300.
     Estimated annual frequency of responses: 20.
    OMB Control Number 1513-0062:
     Estimated total annual reporting and/or record keeping 
burden: 1 hour.
     Estimated number of respondents: 3,430.
     Estimated annual frequency of responses: 1 (one).
    TTB received no comments about the information collections approved 
under OMB control numbers 1513-0011, 1513-0028, 1513-0037, 1513-0061, 
and 1513-0062 in response to Notice No. 136.

Drafting Information

    Karen E. Welch of the Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, drafted this document.

List of Subjects in 27 CFR

Part 19

    Caribbean Basin Initiative, Claims, Electronic funds transfer, 
Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging 
and containers, Puerto Rico, Reporting and recordkeeping requirements, 
Research, Security measures, Surety bonds, Vinegar, Virgin Islands, 
Warehouses.

Part 20

    Alcohol and alcoholic beverages, Claims, Cosmetics, Excise taxes, 
Labeling, Packages and containers, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

Part 21

    Alcohol and alcoholic beverages, Incorporation by reference.

Part 27

    Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties 
and inspection, Electronic fund transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Wine.

Part 28

    Aircraft, Alcohol and alcoholic beverages, Armed forces, Beer, 
Claims, Excise taxes, Exports, Foreign trade zones, Labeling, Liquors, 
Packaging and containers, Reporting and recordkeeping requirements, 
Surety bonds, Vessels, Warehouses, and Wine.

Amendments to the Regulations

    For the reasons discussed in the preamble, TTB amends 27 CFR parts 
19, 20, 21, 27, and 28 as follows:

PART 19--DISTILLED SPIRITS PLANTS

0
1. The authority citation for part 19 continues to read as follows:

    Authority:  19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-
5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114, 
5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 
5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 
5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 
5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 
6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 
9304, 9306.

0
2. Section 19.412 is added under the undesignated center heading 
``Receipt of Spirits from Customs Custody'' to read as follows:


Sec.  19.412  Importation of denatured spirits.

    For provisions relating to the importation of denatured spirits, 
see Sec.  27.222 of this chapter.

0
3. In Sec.  19.427, paragraph (a)(2) is revised to read as follows:


Sec.  19.427  Removal of denatured spirits and articles.

    (a) * * *
    (2) A proprietor may transfer specially denatured spirits to 
qualified users located in a foreign trade zone for use in the 
manufacture of articles under part 20 of this chapter.
* * * * *

0
4. Section 19.607 is revised to read as follows:


Sec.  19.607  Article manufacture records.

    Each processor qualified to manufacture articles must maintain 
daily manufacturing and disposition records, arranged by the name and 
authorized Use Code of the article, in the manner provided in part 20 
of this chapter.

0
5. Section Sec.  19.746 is amended by revising paragraphs (b)(1)(xi) 
and (b)(1)(xii), adding paragraphs (b)(1)(xiii) through (b)(1)(xvi), 
and revising paragraph (c) to read as follows:


Sec.  19.746  Authorized materials.

* * * * *
    (b) * * *
    (1) * * *
    (xi) Naphtha;
    (xii) Straight run gasoline;
    (xiii) Alkylate;
    (xiv) High octane denaturant blend;
    (xv) Methyl tertiary butyl ether; or
    (xvi) Any combination of the materials listed in paragraphs 
(b)(1)(i) through (xv) of this section;
* * * * *
    (c) Specifications. Specifications for the materials listed in 
paragraph (b) are found in part 21, subpart E, of this chapter.
* * * * *

PART 20--DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM

0
6. The authority citation for part 20 continues to read as follows:

    Authority:  26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552, 
5555, 5607, 6065, 7805.


0
7. Section 20.11 is amended by:
0
a. Revising the definition of ``Appropriate TTB officer'';
0
b. Adding in alphabetical order definitions for ``Fit for beverage use, 
or fit for beverage purposes'' and ``Internal human use'';
0
c. Revising the definition of ``Liter or litre'';
0
d. Removing the definition of ``Specially denatured spirits'';
0
e. Adding in alphabetical order a definition for ``Specially Denatured 
Spirits or S.D.S.''
0
f. Adding in alphabetical order definitions for ``TTB'' and ``Unfit for 
beverage use, or unfit for beverage purposes''; and
0
g. Revising the Office of Management and Budget control number 
referenced at the end of the section.
    The revisions and additions read as follows:


Sec.  20.11  Meaning of terms.

* * * * *
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by the 
current version of TTB Order 1135.20, Delegation of the

[[Page 59456]]

Administrator's Authorities in 27 CFR part 20, Distribution and Use of 
Denatured Alcohol and Rum.
* * * * *
    Fit for beverage use, or fit for beverage purposes. Suitable for 
consumption as an alcoholic beverage by a normal person, or susceptible 
of being made suitable for such consumption merely by dilution with 
water to an alcoholic strength of 15 percent by volume. The 
determination is based solely on the composition of the product and 
without regard to extraneous factors such as price, labeling, or 
advertising.
* * * * *
    Internal human use. Use inside the human body, but not including 
use only in the mouth where the substance being used is not intended to 
be swallowed.
* * * * *
    Liter or litre. A metric unit of capacity equal to 1,000 cubic 
centimeters of alcohol, and equivalent to 33.814 fluid ounces. A liter 
is divided into 1,000 milliliters. The symbol for milliliter or 
milliliters is ``mL''.
* * * * *
    Specially Denatured Spirits or S.D.S. Specially denatured alcohol 
and/or specially denatured rum.
* * * * *
    TTB. The Alcohol and Tobacco Tax and Trade Bureau, U.S. Department 
of the Treasury.
* * * * *
    Unfit for beverage use, or unfit for beverage purposes. Not 
conforming to the definition of ``Fit for beverage use, or fit for 
beverage purposes'' in this section.
* * * * *

(Approved by the Office of Management and Budget under control 
number 1513-0061)

Sec.  20.20   [Amended]

0
8. In Sec.  20.20, the second sentence is amended by adding the words 
``the current version of'' immediately before the words ``TTB Order 
1135.20''.


Sec. Sec.  20.22, 20.56, 20.57, 20.60, 20.61, 20.62, 20.68, 20.142, 
20.149, 20.170, 20.171, 20.172, 20.180, 20.192, 20.202, 20.203, 20.212, 
20.216, 20.231, 20.232, 20.234, 20.235, 20.251, 20.252, 20.261, 20.262, 
20.263, and 20.265   [Amended]

0
9. For each section indicated in the left-hand column of the table 
below, the parenthetical phrase at the end of each section is amended 
by removing the Office of Management and Budget control number 
indicated in the middle column, and adding, in its place, the number 
indicated in the right-hand column:

------------------------------------------------------------------------
                 Section                      Remove            Add
------------------------------------------------------------------------
20.22                                          1512-0336       1513-0061
20.56                                          1512-0336       1513-0061
20.57                                          1512-0336       1513-0061
20.60                                          1512-0336       1513-0061
20.61                                          1512-0336       1513-0061
20.62                                          1512-0336       1513-0061
20.68                                          1512-0336       1513-0061
20.142                                         1512-0337       1513-0062
20.149                                         1512-0337       1513-0062
20.170                                         1512-0337       1513-0062
20.171                                         1512-0337       1513-0062
20.172                                         1512-0337       1513-0062
20.180                                         1512-0337       1513-0062
20.192                                         1512-0337       1513-0062
20.202                                         1512-0336       1513-0061
 ``                                            1512-0337       1513-0062
20.203                                         1512-0337       1513-0062
20.212                                         1512-0337       1513-0062
20.216                                         1512-0337       1513-0062
20.231                                         1512-0337       1513-0062
20.232                                         1512-0337       1513-0062
20.234                                         1512-0336       1513-0061
20.235                                         1512-0337       1513-0062
20.251                                         1512-0337       1513-0062
20.252                                         1512-0336       1513-0061
20.261                                         1512-0337       1513-0062
20.262                                         1512-0337       1513-0062
20.263                                         1512-0337       1513-0062
20.265                                         1512-0336       1513-0061
------------------------------------------------------------------------


0
10. In Sec.  20.41, paragraph (d)(1) is revised to read as follows:


Sec.  20.41  Application for industrial alcohol user permit.

* * * * *
    (d) Exceptions. (1) The proprietor of a distilled spirits plant 
qualified under part 19 of this chapter is not required to qualify 
under this part for activities conducted at that plant's bonded 
premises.
* * * * *


Sec.  20.59   [Amended]

0
11. In Sec.  20.59, paragraph (a) is amended by removing the word 
``teminated'' and adding, in its place, the word ``terminated''.

0
12. Section 20.63 is revised to read as follows:


Sec.  20.63  Adoption of formulas and statements of process.

    (a) Adoption of formulas and statements of process is permitted:
    (1) When a successor (proprietorship or fiduciary) adopts a 
predecessor's formulas and statements of process as provided in 
Sec. Sec.  20.57(c) and 20.58; and
    (2) When a permittee adopts for use at one plant, the formulas 
previously approved by TTB for use at another plant, or when a 
permittee adopts a formula previously approved by TTB for a parent or 
subsidiary, provided that in the case of a parent-subsidiary 
relationship the subsidiary is wholly-owned by the parent.
    (b) The adoption will be accomplished by the submission of a 
certificate of adoption. The certificate of adoption shall be submitted 
to the appropriate TTB officer and shall contain:
    (1) A list of all approved formulas or statements of process in 
which S.D.S. is used or recovered;
    (2) The formulas of S.D.S. used or recovered;
    (3) The dates of approval of the relevant Forms 1479-A or TTB Forms 
5150.19:
    (4) The applicable code number(s) for the article or process;
    (5) The name of the permittee adopting the formulas, followed by 
the phrase, for each formula, ``Formula of ___ (Name and permit number 
of permittee who received formula approval) is hereby adopted;'' and
    (6) In the case of a permittee adopting the formulas of another 
entity, evidence of its relationship to that entity.

(Approved by the Office of Management and Budget under control 
number 1513-0061)

Sec.  20.91   [Amended]

0
13. In Sec.  20.91, paragraph (a) is amended by removing the words ``in 
the TTB Bulletin'' and adding, in their place, the words ``on the TTB 
Web site at https://www.ttb.gov''.

0
14. In Sec.  20.93, paragraph (a) is amended by removing the word 
``appoved'' and adding, in its place, the word ``approved''.

0
15. Section 20.95 is revised to read as follows:


Sec.  20.95  Developmental samples of articles.

    (a) Samples for submission to TTB. Prior to receiving formula 
approval on TTB Form 5150.19, a user may use S.D.S. in the manufacture 
of samples of articles for submission in accordance with Sec.  20.92. 
However, the user may only use the limited quantity of S.D.S. that is 
necessary to produce the samples.
    (b) Samples for shipment to prospective customers. Prior to 
submitting a formula and statement of process on TTB Form 5150.19, a 
user may use S.D.S. to prepare developmental samples of articles for 
shipment to prospective customers. Only one sample of each formulation 
of the article under development may be sent to each customer. Each 
sample shall be no larger than necessary for the customer to determine 
whether the product meets its requirements. The user shall maintain 
records showing:
    (1) The types of product samples prepared;

[[Page 59457]]

    (2) The size of the samples sent, on a one-time basis, to each 
prospective customer; and
    (3) The names and addresses of the prospective customers.
    (c) Formula requirement. Before the user begins to make a quantity 
greater than specified in this section, formula approval on TTB Form 
5150.19 is required.

(Approved by the Office of Management and Budget under control 
number 1513-0062)

Sec.  20.100   [Amended]

0
16. In Sec.  20.100, paragraph (a) is amended by removing the word 
``addiition'' and adding, in its place, the word ``addition''.

0
17. Section 20.102 is revised to read as follows:


Sec.  20.102  Bay rum, alcoholado, or alcoholado-type toilet waters.

    Unless manufactured exclusively for export under a formula approved 
by TTB and endorsed ``For Export Only,'' bay rum, alcoholado, or 
alcoholado-type toilet waters made with S.D.S. shall contain in each 
gallon of finished product:
    (a) 71 milligrams of denatonium benzoate (also known as 
benzyldiethyl (2:6-xylylcarbamoyl methyl) ammonium benzoate) in 
addition to any of this material used as a denaturant in the specially 
denatured alcohol;
    (b) 2 grams of tartar emetic; or
    (c) 0.5 avoirdupois ounce of sucrose octaacetate.


Sec.  20.103   [Removed and Reserved]

0
18. Section 20.103 is removed and reserved.

0
19. Section 20.111 is amended by revising paragraph (a), adding a new 
paragraph (c), and revising the Office of Management and Budget control 
number referenced at the end of the section, to read as follows:


Sec.  20.111  General.

    (a) Formula approval obtained on TTB Form 5150.19 is not required 
for an article made in accordance with any approved general-use formula 
that is specified in Sec. Sec.  20.112 through 20.124, that is approved 
by the appropriate TTB officer as an alternate method, or that is 
published as a TTB Ruling on the TTB Web site at https://www.ttb.gov. 
However, a statement of process on TTB Form 5150.19 is still required 
in any of the circumstances described in Sec.  20.94.
* * * * *
    (c) The manufacturer shall ensure that each finished article made 
pursuant to a general-use formula is unfit for beverage use and is 
incapable of being reclaimed or diverted to beverage use or internal 
human use.

(Approved by the Office of Management and Budget under control 
number 1513-0061)

Sec.  20.112   [Amended]

0
20-21. Section 20.112 is amended by:
0
a. In the last sentence of paragraph (a) introductory text, removing 
the word ``alcohol'' and adding, in its place, the letters ``S.D.A.'';
0
b. In paragraph (a)(1) by adding the words ``propylene glycol 
monomethyl ether,'' after the words ``nitropropane (mixed isomers),''; 
and
0
c. In paragraph (a)(2) is amended by removing the cross-reference to 
``Sec.  21.106'' and adding, in its place, the cross-reference ``Sec.  
21.107''.; and
0
d. Removing paragraph (c).

0
22. Section 20.113 is revised to read as follows:


Sec.  20.113  Proprietary solvents general-use formula.

    A proprietary solvent made pursuant to this formula shall be made 
with alcohol denatured in accordance with S.D.A. Formula No. 1, 3-A, or 
3-C and shall contain, for every 100 parts (by volume) of S.D.A.:
    (a) No less than 1 part (by volume) of one or any combination of 
the following: Gasoline, unleaded gasoline, heptane, or rubber 
hydrocarbon solvent, and
    (b) No less than 3 parts (by volume) of one or any combination of 
the following: Ethyl acetate (equivalent to 85 percent ester content, 
as defined in Sec.  21.107 of this chapter), methyl isobutyl ketone, 
methyl n-butyl ketone, tert-butyl alcohol, sec-butyl alcohol, 
nitropropane (mixed isomers), ethylene glycol monoethyl ether, or 
toluene.

0
23. In Sec.  20.114, the introductory text and paragraph (a) are 
revised to read as follows:


Sec.  20.114  Tobacco flavor general-use formula.

    This tobacco flavor general-use formula authorizes the production 
of any finished article made with alcohol denatured in accordance with 
S.D.A. Formula No. 4 or S.D.R. Formula No. 4 which--
    (a) Contains flavors sufficient to ensure that the article is unfit 
for beverage or internal human use,
* * * * *

0
24. In Sec.  20.115, the introductory text and paragraph (a) are 
revised to read as follows:


Sec.  20.115  Ink general-use formula.

    This ink general-use formula authorizes the production of any 
finished article made with alcohol denatured in accordance with S.D.A. 
Formula No. 1, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A, or 40-B, which--
    (a) Contains pigments, dyes, or dyestuffs, which, alone or in 
combination with solvents or other ingredients, are sufficient to 
ensure that the article is unfit for beverage use,
* * * * *

0
25. Section 20.116 is revised to read as follows:


Sec.  20.116  Low alcohol general-use formula.

    This low alcohol general-use formula authorizes the production of 
any finished article containing not more than 5 percent alcohol by 
weight or volume. Articles containing no alcohol, or whose manufacture 
involves the recovery of S.D.S., shall be covered by a statement of 
process on TTB Form 5150.19 submitted under Sec.  20.94.

0
26. Section 20.117 is revised to read as follows:


Sec.  20.117  Reagent alcohol general-use formula.

    (a) General. Reagent alcohol must be made in accordance with 
paragraph (b) of this section and labeled in accordance with paragraph 
(c) of this section. Reagent alcohol is--
    (1) Treated as an article if distributed and used in accordance 
with paragraph (d) of this section; or
    (2) Treated as S.D.A. if distributed and used in accordance with 
paragraph (e) of this section.
    (b) Formula. Reagent alcohol shall be made with 95 parts (by 
volume) of S.D.A. 3-A, and 5 parts (by volume) of isopropyl alcohol. 
Water may be added at the time of manufacture. Reagent alcohol shall 
not contain any ingredient other than those specified in this 
paragraph.
    (c) Labeling. Each container of reagent alcohol, regardless of 
size, shall have affixed to it a label containing the following words 
that are as conspicuous as any other words on the container labels: 
``Reagent Alcohol: Specially Denatured Alcohol Formula 3-A, 95 parts by 
vol.; and Isopropyl Alcohol, 5 parts by vol.'' If water is added at the 
time of manufacture, the label shall specify the composition of the 
product as diluted.
    (d) Distribution and use of reagent alcohol as an article. Reagent 
alcohol is treated as an article if distributed exclusively for the 
purpose of scientific use. Only the following distributions of reagent 
alcohol are permitted under this paragraph:
    (1) For scientific use. (i) In smaller containers. The manufacturer 
or repackager of the reagent alcohol, or an

[[Page 59458]]

S.D.S. dealer, may distribute reagent alcohol in containers not 
exceeding four liters to laboratories or other persons who require 
reagent alcohol for scientific use.
    (ii) In bulk containers. The manufacturer of the reagent alcohol, 
or an S.D.S. dealer, may distribute reagent alcohol in containers 
larger than four liters to a laboratory or other person requiring 
reagent alcohol for scientific use if that laboratory or person is 
qualified to receive bulk shipments of reagent alcohol on October 31, 
2016 or has received, from the appropriate TTB officer, approval of a 
letterhead application containing the following information:
    (A) The applicant's name, address, and permit number, if any;
    (B) An explanation of the applicant's need for bulk quantities of 
reagent alcohol;
    (C) A description of the security measures that will be taken to 
segregate reagent alcohol from denatured spirits or other alcohol that 
may be on the same premises; and
    (D) A statement that the applicant will allow any appropriate TTB 
officer to inspect the applicant's premises.
    (2) For repackaging. The manufacturer of the reagent alcohol, or an 
S.D.S. dealer, may distribute reagent alcohol in containers larger than 
4 liters to the persons specified in this paragraph. Those persons must 
repackage the reagent alcohol in containers not exceeding 4 liters, 
label the smaller packages in accordance with paragraph (c) of this 
section, and redistribute them in accordance with paragraph (d)(1)(i) 
of this section. The persons to whom reagent alcohol may be distributed 
in bulk for repackaging under this paragraph are:
    (i) A proprietor of a bona fide laboratory supply house; and
    (ii) Any other person who was qualified to receive bulk shipments 
of reagent alcohol on October 31, 2016, or who has received, from the 
appropriate TTB officer, approval of a letterhead application 
containing all of the information required by paragraph (d)(1)(ii)(A) 
through (D), in addition to the following:
    (A) A statement that the applicant will comply with the labeling, 
packaging, and distribution requirements of paragraphs (c) and (d)(1) 
of this section; and
    (B) A statement that the applicant will comply with the 
requirements of Sec.  20.133.
    (3) For redistribution. The manufacturer of the reagent alcohol, or 
an S.D.S. dealer, may distribute reagent alcohol in containers of any 
size to an S.D.S. dealer for redistribution in accordance with this 
section. An S.D.S. dealer distributing or redistributing reagent 
alcohol may repackage it in containers of any size permitted under this 
section that is necessary for the conduct of business.
    (e) Distribution and use of reagent alcohol in manufacturing. 
Reagent alcohol is treated as S.D.A. if distributed for the purpose of 
manufacturing. The following requirements apply to reagent alcohol 
treated as S.D.A.:
    (1) The manufacturer of the reagent alcohol, or an S.D.S. dealer, 
may distribute reagent alcohol in containers of any size to the persons 
specified in this paragraph for use in manufacturing.
    (2) A person may receive reagent alcohol for use in manufacturing 
if the person:
    (i) Holds a permit as an S.D.A. user;
    (ii) Has received formula approval on TTB Form 5150.19 to use 
reagent alcohol in manufacturing; and
    (iii) Treats the reagent alcohol as S.D.A., not an article.

(Approved by the Office of Management and Budget under control 
number 1513-0061)

Sec.  20.118   [Amended]

0
27. Section 20.118(b) is amended by:
0
a. In Formula A, removing the word ``ordorous'' and adding, in its 
place, the word ``odorous''; and
0
b. In Formula B, removing the term ``(Bitrex (THS-839))'' and adding, 
in its place, the term ``(denatonium benzoate)''.


Sec.  20.119   [Amended]

0
28. In Sec.  20.119, the introductory text is amended by:
0
a. Removing the words ``shall consist of'' and adding, in their place, 
the word ``describes''; and
0
b. Removing the word ``formula'' the second time it appears and adding, 
in its place, the word ``formulation''.

0
29. In subpart F, add Sec. Sec.  20.120 through 20.124 to read as 
follows:

Subpart F--Formulas and Statements of Process

* * * * *
Sec.
20.120 Multi-purpose general-use formula.
20.121 Vinegar general-use formula.
20.122 S.D.A. 39-C general-use formula.
20.123 Pressurized container general-use formula.
20.124 Duplicating fluid and ink solvent general-use formula.


Sec.  20.120  Multi-purpose general-use formula.

    TTB authorizes this general-use formula for the manufacture of any 
article that:
    (a) Is made with alcohol denatured in accordance with S.D.A. 
Formula No. 1, 3-A, 13-A, 19, 23-A, 23-H, 30, 32, 35-A, 36, 37, 38-D, 
40, 40-A, and/or 40-B, but no other specially denatured spirits 
formula;
    (b) Conforms to one of the Use Codes specified in part 21 of this 
chapter authorized for the S.D.A. formulation(s) being used to make the 
article, other than Use Code 900, as described in part 21 of this 
chapter; and
    (c) Contains sufficient additional ingredients, other than the 
denaturants prescribed for the applicable S.D.A. formula(s) --
    (1) To definitely change the composition and character of the 
S.D.A. used to make the article, and
    (2) To ensure that the finished article is unfit for beverage or 
other internal human use, and, unless approved under Sec.  20.193(b), 
is incapable of being reclaimed or diverted to beverage use or internal 
human use; and
    (d) Does not conform to any other general-use formula provided in 
subpart F of this part.


Sec.  20.121  Vinegar general-use formula.

    The vinegar general-use formula is a formula for making vinegar 
with alcohol denatured in accordance with S.D.A. Formula No. 18 in a 
process whereby all of the ethyl alcohol, except residual alcohol 
within the limit specified in Sec.  20.104, loses its identity by being 
converted to vinegar.


Sec.  20.122  S.D.A. 39-C general-use formula.

    S.D.A. 39-C general-use formula is a formula for articles made with 
alcohol denatured in accordance with S.D.A. Formula No. 39-C. Articles 
made pursuant to this general-use formula shall contain, in each gallon 
of finished product, not less than 2 fl. oz. of perfume material 
(essential oils as defined in Sec.  21.11, isolates, aromatic 
chemicals, etc.). Unless approved with the endorsement ``for export 
only,'' all articles made with alcohol denatured in accordance with 
S.D.A. Formula No. 39-C must be made in accordance with this formula.


Sec.  20.123  Pressurized container general-use formula.

    This general-use formula describes an article, made with alcohol 
denatured in accordance with S.D.A. Formula No. 40-C, that will be 
packaged in pressurized containers in which the liquid contents are in 
intimate contact with the propellant and from which the contents are 
not easily removable in liquid form.

[[Page 59459]]

Sec.  20.124  Duplicating fluid and ink solvent general-use formula.

    (a) Duplicating fluids and ink solvents under this general-use 
formula shall be made with alcohol denatured in accordance with S.D.A. 
Formula No. 1, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A, or 40-B, and
    (1) Shall contain, for every 100 parts (by volume) of denatured 
alcohol:
    (i) No less than 1 part (by volume) of n-propyl acetate, and no 
less than 10 parts (by volume) of one or any combination of isopropyl 
alcohol or methyl alcohol; or
    (ii) No less than 5 parts (by volume) of n-propyl acetate; and
    (2) May contain additional ingredients.
    (b) Duplicating fluids and ink solvents are intended for use in the 
printing industry, shall not be sold for general solvent use, and shall 
not be distributed through retail channels for sale as consumer 
commodities for personal or household use.


Sec.  20.131   [Amended]

0
30. In Sec.  20.131, the second sentence is amended by adding the word 
``in'' after the words ``general terms''.

0
31. Section 20.132 is amended by adding a new paragraph (d) to read as 
follows:


Sec.  20.132  General requirements.

* * * * *
    (d) Analytical tolerance. In the case of an article manufactured in 
accordance with a formula that specifies exact amounts of ingredients, 
including denatured spirits, TTB will apply an analytical tolerance of 
5% and use standard rounding rules in determining whether 
the article complies with the formula.

0
32. In Sec.  20.133, paragraph (b) is revised, paragraph (c) is added, 
and the Office of Management and Budget control number referenced at 
the end of the section is revised to read as follows:


Sec.  20.133  Registration of persons trafficking in articles.

* * * * *
    (b) A person who reprocesses articles shall ensure that each 
article containing 0.5 percent or more alcohol by weight or volume is 
unfit for beverage or internal human use and is incapable of being 
reclaimed or diverted to beverage use or internal human use.
    (c) The appropriate TTB officer will prohibit any of the activities 
described in paragraph (a) of this section if the activity jeopardizes 
the revenue or increases the burden of administering this part.

(Approved by the Office of Management and Budget under control 
number 1513-0061)


0
33. In Sec.  20.134, paragraph (a) and the Office of Management and 
Budget control number referenced at the end of the section are revised 
to read as follows:


Sec.  20.134  Labeling.

    (a) General. Except as otherwise provided in paragraph (b) or (c) 
of this section, the immediate container of each article shall, before 
removal from the manufacturer's premises, bear the following 
information either directly on the container or on a label securely 
attached to it:
    (1) The name, trade name or brand name of the article; and
    (2) The name and address (city and State) of the manufacturer or 
distributor of the article.
* * * * *

(Approved by the Office of Management and Budget under control 
number 1513-0061)


0
34. Section 20.136 is revised to read as follows:


Sec.  20.136  Labeling regulations of other agencies.

    Other Federal agencies have promulgated regulations that may affect 
the labeling of denatured spirits or articles. Manufacturers are 
responsible for properly labeling denatured spirits and articles in 
compliance with all applicable regulations of those other Federal 
agencies, which may include:
    (a) The Consumer Product Safety Commission, which has promulgated 
regulations to administer the Federal Hazardous Substances Act, which 
include regulations in 16 CFR chapter II that require warning labels 
for products containing certain specified substances like methyl 
alcohol, which is a denaturant in formulations of S.D.A. Formula Nos. 
3-A and 30, and is a hazardous substance at levels of 4 percent or more 
by weight;
    (b) The Federal Trade Commission, which has promulgated regulations 
in 16 CFR chapter I to administer the Fair Packaging and Labeling Act, 
which affect the packaging and labeling of ``consumer commodities'' 
(which generally means products intended for retail sale to an 
individual for personal or household use);
    (c) The Food and Drug Administration, which has promulgated 
regulations in 21 CFR chapter I to administer the Fair Packaging and 
Labeling Act (as it applies to drugs, medical devices, or cosmetics) 
and the Federal Food, Drug and Cosmetic Act; and
    (d) The Occupational Safety and Health Administration, which 
administers the Occupational Safety and Health Act of 1970 and has 
promulgated regulations in 29 CFR chapter XVII concerning the 
communication of hazards.


Sec.  20.141   [Amended]

0
35. In Sec.  20.141, paragraph (a) is amended by removing the word 
``formula'' the first time it appears, and adding, in its place, the 
word ``formulation'', and by adding the words ``formulations of'' after 
the words ``For example,''.


Sec.  20.163   [Amended]

0
36. In Sec.  20.163:
0
a. Paragraph (d) is amended by removing the words ``of bill or lading'' 
and adding, in their place, the words ``or bill of lading''; and
0
b. The parenthetical phrase at the end of the section is amended by 
removing the Office of Management and Budget control number ``1512-
0337'' and adding, in its place, the number ``1513-0062''.


Sec.  20.170   [Amended]

0
37. Section 20.170 is amended by removing the word ``formula'' and 
adding, in its place, the word ``formulation''.


Sec.  20.175   [Amended]

0
38. In Sec.  20.175, paragraph (c) is amended by adding to the end of 
the sentence the words, ``except as provided in 26 U.S.C. 5001(a)(4) 
and (5)''.

0
39. Section 20.183 is added under the undesignated center heading 
``Operations by Dealers'' to read as follows:


Sec.  20.183  Exportation of S.D.S.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, a dealer may export S.D.S. that conform to a formula specified 
in part 21 of this chapter to any country that allows the importation 
of such spirits. The exporting dealer shall:
    (1) For each export shipment, prepare TTB Form 5100.11 in 
accordance with its instructions as a notice and submit it to the 
appropriate TTB officer;
    (2) Mark each shipping container and case with the words ``For 
Export'';
    (3) Export the S.D.S. directly; and
    (4) Retain appropriate documentation, such as invoices and bills of 
lading, as evidence that the denatured spirits were, in fact, exported.
    (b) Exception. A dealer may not export under paragraph (a) of this 
section any spirits that conform to Formula No. 3-C, 29, or 38-B.

[[Page 59460]]

0
40. Section 20.189 is amended by revising paragraphs (c) and (d) to 
read as follows:


Sec.  20.189  Use of S.D.S.

* * * * *
    (c) Unless otherwise authorized by the appropriate TTB officer, 
each formulation of S.D.S. may be used only for the purposes authorized 
for that formulation under part 21 of this chapter.
    (d) By the use of essential oils and/or chemicals in the 
manufacture of each article containing 0.5 percent or more alcohol by 
weight or volume, the manufacturer shall ensure that:
    (1) Each finished article is unfit for beverage use; and
    (2) Unless approved ``for export only'' under Sec.  20.193(b), each 
finished article is incapable of being reclaimed or diverted to 
beverage use or internal human use.
* * * * *


Sec.  20.191  [Amended]

0
41. Section 20.191 is amended by removing the last sentence.

0
42. Section 20.193 is added to subpart I to read as follows:


Sec.  20.193  Articles for export.

    (a) Articles approved without qualification, including articles 
made in accordance with one of the general-use formulas in Sec. Sec.  
20.111 through 20.124, may be exported without restriction.
    (b) For each article for which the approved formula is endorsed 
``For Export Only'' the manufacturer shall:
    (1) Label the immediate container to clearly show that the article 
is for export (for example, with the words ``For export only'', ``Not 
for sale in the United States'', or ``Manufactured for sale in ___'');
    (2) Mark the shipping containers and cases with the words ``For 
Export'';
    (3) Export the article directly; and
    (4) Retain appropriate documentation, such as invoices and bills of 
lading, as evidence that the article was, in fact, exported.
    (c) All articles for export shall comply with the applicable 
requirements of the countries to which they are sent.

0
43. In Sec.  20.204, paragraph (c) is revised to read as follows:


Sec.  20.204  Incomplete shipments.

* * * * *
    (c) Subject to the limitations for loss prescribed in Sec.  20.202, 
the shipper (dealer or distilled spirits plant proprietor) shall file a 
claim for allowance of the entire quantity lost, in the manner provided 
in that section. The claim shall include the applicable data required 
by Sec.  20.205.

0
44. Section 20.222 is revised to read as follows:


Sec.  20.222  Destruction.

    (a) Record of destruction. A permittee who destroys specially 
denatured spirits or recovered alcohol, or who transfers such material 
to another entity for destruction, shall prepare a record of 
destruction, which shall be maintained by the permittee with the 
records required by subpart P of this part. The record shall identify--
    (1) The reason for destruction,
    (2) The date, time, location and manner of destruction,
    (3) The quantity involved and, if applicable, identification of 
containers, and
    (4) The name of the individual who accomplished or supervised the 
destruction.
    (b) Destruction by nonpermittees. In general, the destruction of 
specially denatured spirits and recovered alcohol shall be performed by 
a permittee or a distilled spirits plant. However, a nonpermittee may 
destroy recovered alcoholic material if the material has been 
determined by the appropriate TTB officer to be equivalent to an 
article. If the material is not so determined, destruction may only 
occur on the premises of the manufacturer who recovered the material, a 
distilled spirits plant, or a dealer permittee.

(Approved by the Office of Management and Budget under control 
number 1513-0062)

Sec.  20.262   [Amended]

0
45. Section 20.262 is amended by removing the word ``formula'' each 
place it occurs and adding in its place the word ``formulation''.


Sec.  20.263   [Amended]

0
46. Section 20.263 is amended by removing the word ``formula'' each 
place it occurs and adding in its place the word ``formulation''.

0
47. In Sec.  20.264, paragraphs (a)(1) and (2) are revised, paragraph 
(a)(4) is added, and the Office of Management and Budget control number 
referenced at the end of the section is revised to read as follows:


Sec.  20.264  User's records and report of products and processes.

    (a) Records. (1) Each user shall maintain separate accountings of--
    (i) The number of gallons of each formulation of new S.D.S. used 
for each product or process, recorded by the code number prescribed by 
Sec.  21.141 of this chapter; and
    (ii) The number of gallons of each formulation of recovered S.D.S. 
used for each product or process, recorded by the code number 
prescribed by Sec.  21.141 of this chapter.
    (2) Each user who recovers specially denatured spirits shall 
maintain separate accountings of the number of gallons of each 
formulation of specially denatured spirits recovered from each product 
or process, recorded by the code number prescribed by Sec.  21.141 of 
this chapter.
* * * * *
    (4) Each user who manufactures articles for export subject to Sec.  
20.193(b) shall retain the documentation required by Sec.  
20.193(b)(4).
* * * * *

(Approved by the Office of Management and Budget under control 
number 1513-0062)

PART 21--FORMULAS FOR DENATURED ALCOHOL AND RUM

0
48. The authority citation of part 21 continues to read as follows:

    Authority:  5 U.S.C. 552(a), 26 U.S.C. 5242, 7805.


0
49. Part 21 is amended by removing the abbreviation ``ml'' each place 
it occurs within the part and adding, in its place, the abbreviation 
``mL''.


Sec.  21.7   [Amended]

0
50. In Sec.  21.7, the second sentence is amended by adding the words 
``the current version of'' immediately before the words ``TTB Order 
1135.21''.


Sec.  21.11   [Amended]

0
51. In Sec.  21.11:
0
a. The definition of ``Appropriate TTB Officer'' is amended by adding 
the words ``the current version of'' immediately before the words ``TTB 
Order 1135.21''; and
0
b. The definition of ``C.D.A.'' is amended by removing the word 
``Completly'' and adding, in its place, the word ``Completely''.

0
52. In Sec.  21.21 add paragraph (d) to read as follows:


Sec.  21.21  General.

* * * * *
    (d) TTB will apply an analytical tolerance of 5 percent 
and use standard rounding rules in determining whether completely 
denatured alcohol complies with the formula prescribed in this subpart 
(or in accordance with Sec.  21.5).

0
53. In Sec.  21.24, paragraph (a) is revised to read as follows:


Sec.  21.24  Formula No. 20.

    (a) Formula. To every 100 gallons of ethyl alcohol of not less than 
195 proof add:

[[Page 59461]]

    A total of 2.0 gallons of either unleaded gasoline, rubber 
hydrocarbon solvent, kerosene, deodorized kerosene, alkylate, ethyl 
tertiary butyl ether, high octane denaturant blend, methyl tertiary 
butyl ether, naphtha, natural gasoline, raffinate, or any combination 
of these; or
    A total of 5.0 gallons of toluene.
* * * * *

0
54. In subpart C, Sec.  21.25 is added to read as follows:


Sec.  21.25  Formula No. 35.

    Formula. To every 100 gallons of alcohol of not less than 185 proof 
add:
    29.75 gallons of ethyl acetate having an ester content of 100 
percent by weight or the equivalent thereof not to exceed 35 gallons of 
ethyl acetate with an ester content of not less than 85 percent by 
weight.

0
55. In subpart C, Sec.  21.26 is added to read as follows:


Sec.  21.26  Formula No. 12-A.

    Formula. To every 100 gallons of alcohol of not less than 185 proof 
add:
    Five gallons of toluene or 5 gallons of heptane.

0
56. Section 21.31 is amended by adding paragraph (d) to read as 
follows:


Sec.  21.31  General.

* * * * *
    (d) Analytical tolerance. TTB will apply an analytical tolerance of 
5% and use standard rounding rules in determining whether 
specially denatured spirits complies with the formula prescribed in 
this subpart (or in accordance with Sec.  21.5).

0
57. In Sec.  21.33, paragraph (a) is revised to read as follows:


Sec.  21.33  Formula No. 2-B.

    (a) Formula. To every 100 gallons of alcohol add:
    One-half gallon of rubber hydrocarbon solvent, \1/2\ gallon of 
toluene, \1/2\ gallon of heptane, \1/2\ gallon of hexane (mixed 
isomers), or \1/2\ gallon of n-hexane.
* * * * *


Sec.  21.34   [Removed and Reserved]

0
58. Section 21.34 is removed and reserved.


Sec.  21.35   [Amended]

0
59. In Sec.  21.35, paragraph (a) is amended by adding the words 
``cyclohexane or'' before the words ``methyl alcohol.''


Sec.  21.36   [Removed and Reserved]

0
60. Section 21.36 is removed and reserved.


Sec. Sec.  21.39 and 21.40   [Removed and Reserved]

0
61. Sections 21.39 and 21.40 are removed and reserved.


Sec.  21.41   [Amended]

0
62. In Sec.  21.41, paragraph (b) is amended by adding the words ``485. 
Miscellaneous solutions.'' in appropriate numerical order.


Sec.  21.42   [Removed and Reserved]

0
63. Section 21.42 is removed and reserved.


Sec. Sec.  21.45 and 21.46   [Removed and Reserved]

0
64. Sections 21.45 and 21.46 are removed and reserved.


Sec.  21.48   [Removed and Reserved]

0
65. Section 21.48 is removed and reserved.


Sec.  21.49   [Amended]

0
66. In Sec.  21.49, paragraph (b)(1) is amended by removing the word 
``insectides'' from the entry beginning ``410'' and adding, in its 
place, the word ``insecticides''.


Sec. Sec.  21.52 through 21.54   [Removed and Reserved]

0
67. Sections 21.52 through 21.54 are removed and reserved.


Sec.  21.59   [Amended]

0
68. In Sec.  21.59, paragraph (b) is amended by adding the words ``485. 
Miscellaneous solutions.'' in appropriate numerical order.


Sec. Sec.  21.60 and 21.61   [Removed and Reserved]

0
69. Sections 21.60 and 21.61 are removed and reserved.


Sec.  21.62   [Amended]

0
70. In Sec.  21.62, paragraph (b)(1) is amended by adding the words 
``052. Inks.'' and ``485. Miscellaneous solutions.'' in appropriate 
numerical order.


Sec.  21.63   [Amended]

0
71. In Sec.  21.63, paragraph (a) is amended by adding the words ``8.75 
pounds of potassium hydroxide, on an anhydrous basis;'' before the 
words ``or 12.0 pounds of caustic soda,''.


Sec.  21.64   [Amended]

0
72. Section 21.64(a) is amended by removing the word ``onces'' and 
adding, in its place, the word ``ounces''.


Sec.  21.65   [Amended]

0
73. In Sec.  21.65, the list in paragraph (a) is amended by adding 
entries reading ``Cornmint oil.'', ``Distilled lime oil.'', ``L(-)-
Carvone.'', ``Lemon oil.'', and ``Peppermint oil, Terpeneless.'', in 
appropriate alphabetical order, and paragraph (b)(1) is amended by 
removing the word ``Sterlizing'' from the entry beginning ``430'' and 
adding, in its place, the word ``Sterilizing''.


Sec.  21.66   [Removed and Reserved]

0
74. Section 21.66 is removed and reserved.

0
75. In Sec.  21.68, paragraphs (a)(1) and (2) are revised to read as 
follows:


Sec.  21.68  Formula No. 38-F.

    (a) * * *
    (1) Six pounds of either boric acid, N.F., Polysorbate 80, N.F., or 
Poloxamer 407, N.F.; 1\1\/3 pounds of thymol, N.F.; 1\1\/
3 pounds of chlorothymol, N.F. XII; and 1\1\/3 
pounds of menthol, U.S.P.; or
    (2) A total of at least 3 pounds of any two or more denaturing 
materials listed under Formula No. 38-B, plus sufficient boric acid, 
N.F., Polysorbate 80, N.F., or Poloxamer 407, N.F. to total 10 pounds 
of denaturant; or
* * * * *


Sec. Sec.  21.69 and 21.70   [Removed and Reserved]

0
76. Sections 21.69 and 21.70 are removed and reserved.


Sec.  21.76   [Amended]

0
77. In Sec.  21.76, paragraph (b)(1) is amended by adding the words 
``052. Inks.'' and ``485. Miscellaneous solutions.'' in appropriate 
numerical order.


Sec.  21.78   [Removed and Reserved]

0
78. Section 21.78 is removed and reserved.


Sec.  21.81   [Removed and Reserved]

0
79. Section 21.81 is removed and reserved.


Sec.  21.91   [Amended]

0
80. Section 21.91 is amended by adding a sentence at the end of the 
section to read as follows:


Sec.  21.91  General.

    * * * The authorization of a substitute denaturant may be published 
in a TTB Ruling.

0
81. Section 21.94-T is added to read as follows:


Sec.  21.94-T  Alkylate.

    (a) API gravity at 60[emsp14][deg]F. 70.4.
    (b) Reid vapor pressure (PSI). 5.60 maximum.
    (c) Distillation ([deg]F):
    (i) I.B.P. 109.0.
    (ii) 10 percent. 186.6.
    (iii) 50 percent. 221.1.
    (iv) 90 percent. 271.8.
    (v) End point distillation. 375.7.


Sec. Sec.  21.97 and 21.98   [Removed and Reserved]

0
82. Sections 21.97 and 21.98 are removed and reserved.

[[Page 59462]]

Sec. Sec.  21.103 and 21.104   [Removed and Reserved]

0
83. Sections 21.103 and 21.104 are removed and reserved.

0
84. Section 21.105-T1 is added to read as follows:


Sec.  21.105-T1  Cornmint oil (Mentha arvensis and Mentha canadensis).

    (a) Specific gravity at 25 [deg]C. 0.895 to 0.905.
    (b) Refractive index at 20 [deg]C. 1.4580 to 1.4590.
    (c) Optical rotation at 20 [deg]C. -18[deg] to -36[deg].
    (d) Alcohol content (as menthol). 65 percent minimum.
    (e) Ketone content (as menthone). 5 percent minimum.

0
85. Section 21.105-T2 is added to read as follows:


Sec.  21.105-T2  Cyclohexane.

    (a) Specific gravity at 20 [deg]C. 0.75 to 0.80.
    (b) Odor. Characteristic odor.

0
86. Section 21.106-T is added to read as follows:


Sec.  21.106-T  Distilled lime oil (Citrus aurantifolia).

    (a) Specific gravity at 25 [deg]C. 0.850 to 0.870.
    (b) Refractive index at 20 [deg]C. 1.4740 to 1.4780.
    (c) Optical rotation at 20 [deg]C. +30[deg] to +50[deg].
    (d) Aldehyde content (as citral). 0.5 to 3.0 percent.
    (e) Terpene content (as limonene). 45 percent minimum.

0
87. Section 21.108-T is added to read as follows:


Sec.  21.108-T  Ethyl tertiary butyl ether.

    (a) Purity. >=95.0 percent.
    (b) Color. Colorless to light yellow.
    (c) Odor. Terpene-like.
    (d) Specific gravity at 20 [deg]C. 0.70 to 0.80.
    (e) Boiling point ([deg]C). 73.


Sec.  21.111   [Removed and Reserved]

0
88. Section 21.111 is removed and reserved.

0
89. Section 21.112-T1 is added to read as follows:


Sec.  21.112-T1  Hexane (mixed isomers).

    (a) General. Minimum 55 percent n-hexane.
    (b) Distillation range. No distillate should come over below 
150[emsp14][deg]F and none above 160 [deg]F.
    (c) Odor. Characteristic odor.

0
90. Section 21.112-T2 is added to read as follows:


Sec.  21.112-T2  n-Hexane.

    (a) General. Minimum 97 percent purity.
    (b) Distillation range. No distillate should come over below 150 
[deg]F and none above 160 [deg]F.
    (c) Odor. Characteristic odor.

0
91. Section 21.112-T3 is added to read as follows:


Sec.  21.112-T3  High octane denaturant blend.

    (a) API Gravity at 60 [deg]F. 40 to 65.
    (b) Reid Vapor Pressure (PSI). 6 to 15.
    (c) Isopropyl alcohol. 24 to 40 percent volume.
    (d) Methyl alcohol. 1.6 to 9.6 percent volume.
    (e) Diisopropyl ether (DIPE). 4 to 12 percent volume.
    (f) tert-Butyl alcohol. 4 to 12 percent volume.
    (g) Iso-pentane. 4 to 9 percent volume.
    (h) Pentane. 4 to 9 percent volume.
    (i) Pentene. 0 to 2.4 percent volume.
    (j) Hexane. 2 to 6 percent volume.
    (k) Heptane. 1 to 3 percent volume.
    (l) Sulfur (ppm). 0 to 120.
    (m) Benzene (% vol.). 0 to 1.1.
    (n) Distillation ([deg]F):
    (i) 10 percent. 80 to 168.
    (ii) 50 percent. 250.
    (iii) End point distillation. 437.

0
92. Section 21.115-T1 is added to read as follows:


Sec.  21.115-T1  Lemon oil (Citrus limonium).

    (a) Specific gravity at 25 [deg]C. 0.850 to 0.860.
    (b) Refractive index at 20 [deg]C. 1.4570 to 1.4580.
    (c) Optical rotation at 20 [deg]C. +55[deg] to +65[deg].
    (d) Terpene content (as limonene). 65 percent minimum.

0
93. Section 21.115-T2 is added to read as follows:


Sec.  21.115-T2  L(-)-Carvone.

    (a) Specific gravity at 25 [deg]C. 0.955 to 0.965.
    (b) Refractive index at 20 [deg]C. 1.495 to 1.500.
    (c) Angular rotation. -57[deg] to -62[deg].
    (d) Assay. Not less than 97.0 percent.

0
94. Section 21.118-T1 is added to read as follows:


Sec.  21.118-T1  Methyl tertiary butyl ether.

    (a) Purity. >= 97.0 percent.
    (b) Color. Clear, colorless.
    (c) Odor. Turpentine-like.
    (d) Specific Gravity at 20 [deg]C. 0.70 to 0.80.
    (e) Boiling Point ([deg]C). 55.

0
95. Section 21.118-T2 is added to read as follows:


Sec.  21.118-T2  Naphtha.

    (a) API Gravity at 60 [deg]F. 30 to 85.
    (b) Reid Vapor Pressure (PSI). 8 maximum.
    (c) Specific Gravity at 20 [deg]C. 0.70 to 0.80.
    (d) Distillation ([deg]F):
    (i) I.B.P. 85 maximum.
    (ii) 10 percent. 130 maximum.
    (iii) 50 percent. 250 maximum.
    (iv) 90 percent. 340 maximum.
    (e) End point distillation. 380 maximum.
    (f) Copper corrosion. One (1).
    (g) Sabolt color. 28 minimum.

0
96. Section 21.118-T3 is added to read as follows:


Sec.  21.118-T3  Natural gasoline.

    Natural gasoline is a mixture of various alkanes including butane, 
pentane, and hexane hydrocarbons extracted from natural gas. It has a 
distillation range wherein no more than 10 percent by volume of the 
sample may distill below 97[emsp14][deg]F; at least 50 percent by 
volume shall distill at or below 156[emsp14][deg]F; and at least 90 
percent by volume shall distill at or below 209[emsp14][deg]F.

0
97. Section 21.121 is revised to read as follows:


Sec.  21.121  Peppermint oil, Terpeneless.

    (a) Specific gravity at 25 [deg]C. 0.890 to 0.910.
    (b) Refractive index at 20 [deg]C. 1.455 to 1.465.
    (c) Esters as menthyl acetate. 5 percent minimum.
    (d) Menthol (free and esters). 5 percent minimum.

0
98. Section 21.122 is revised to read as follows:


Sec.  21.122  Potassium Hydroxide.

    (a) Color. White or yellow.
    (b) Specific gravity at 20 [deg]C. 1.95 to 2.10.
    (c) Melting point. 360 [deg]C.
    (d) Boiling point. 1320 [deg]C.
    (e) pH (0.1M solution). 13.5.

0
99. Section 21.124-T is added to read as follows:


Sec.  21.124-T  Raffinate.

    (a) API Gravity at 60[emsp14][deg]F. 30 to 85.
    (b) Reid Vapor Pressure (PSI). 5 to 11.
    (c) Octane (R+M/2). 66 to 70.
    (d) Distillation ([deg]F):
    (i) 10 percent. 120 to 150.
    (ii) 50 percent. 144 to 180.
    (iii) 90 percent. 168 to 200.
    (iv) End point distillation. 216 to 285.


Sec.  21.125   [Amended]

0
100. In Sec.  21.125, the first sentence of paragraph (b) is amended by 
removing the word ``themometer'' and adding, in its place, the word 
``thermometer''.


Sec.  21.128   [Removed and Reserved]

0
101. Section 21.128 is removed and reserved.

0
102. Section 21.130-T is added to read as follows:

[[Page 59463]]

Sec.  21.130-T  Straight run gasoline.

    (a) General. Straight run gasoline is a mixture consisting 
predominantly (greater than 60 percent by volume) of C4, 
C5, C6, C7 and/or C8 
hydrocarbons, and is either:
    (1) A petroleum distillate coming straight from an atmospheric 
distillation unit without being cracked or reformed, or
    (2) A condensate coming directly from an oil/gas recovery 
operation.
    (b) API gravity. 72[deg] minimum, 85[deg] maximum.
    (c) Reid vapor pressure (PSI). 15 maximum.
    (d) Sulfur. 120 ppm maximum.
    (e) Benzene. 1.1 percent by volume maximum.
    (f) Distillation ([deg]F):
    (1) 10 percent. 97 minimum, 158 maximum.
    (2) 50 percent. 250 maximum.
    (3) Final boiling point. 437 maximum.

0
103. Section 21.132 is revised to read as follows:


Sec.  21.132  Toluene.

    (a) Specific Gravity at 15.56[deg]/15.56 [deg]C. 0.80 to 0.90.
    (b) Boiling point ([deg]C). 110.6.
    (c) Distillation range ([deg]C). Not more than 1 percent by volume 
should distill below 109, and not less than 99 percent by volume below 
112.
    (d) Odor. Characteristic odor.

0
104. In Sec.  21.141, the table is amended by:
0
a. Removing the entry for ``Antiseptic, bathing solution 
(restricted)'';
0
b. Removing each reference to ``2-C'', ``3-B'', ``6-B'', ``12- A'', 
``17'', ``20'', ``22'', ``23-F'', ``27'', ``27-A'', ``27-B'', ``33'', 
``35'', ``38-C'', ``39'', ``39-A'', ``42'', and ``46'' in the column 
headed ``Formulas authorized''; and
0
c. Revising the entries for ``Inks'' and for ``Solutions, 
miscellaneous''.
    The revisions read as follows:


Sec.  21.141  List of products and processes using specially denatured 
alcohol and rum, and formulas authorized therefor.

* * * * *

------------------------------------------------------------------------
       Product or process           Code No.       Formulas authorized
------------------------------------------------------------------------
 
                              * * * * * * *
Inks...........................             052  1, 3-A, 3-C, 13-A, 23-
                                                  A, 30, 32, 33, 35-A,
                                                  40-B.
 
                              * * * * * * *
Solutions, miscellaneous.......             485  1, 3-A, 3-C, 13-A, 23-
                                                  A, 30, 32, 35-A, 40-B,
                                                  40-C.
 
                              * * * * * * *
------------------------------------------------------------------------

* * * * *


Sec.  21.151   [Amended]

0
105. In Sec.  21.151, the table is amended by:
0
a. Removing the entries for ``Benzene''; ``Bone oil (Dipple's oil)''; 
``Chloroform''; ``Cinchonidine''; ``Cinchonidine sulfate, N.F. IX''; 
``Gentian violet''; ``Gentian violet, U.S.P''; ``Mercuric iodide, red 
N.F. XI''; ``Phenyl mercuric benzoate''; ``Phenyl mercuric chloride, 
N.F. IX''; ``Phenyl mercuric nitrate, N.F''; ``Pine tar, U.S.P''; 
``Pyridine bases''; ``Quassia, fluid extract, N.F. VII''; ``Quinine, 
N.F. X''; ``Quinine dihydrochloride, N.F. XI''; ``Resorcinol 
(Resorcin), U.S.P''; ``Salicylic acid, U.S.P''; ``Sodium, metallic''; 
and ``Thimerosal, U.S.P'';
0
b. Removing each remaining reference to ``2-C'', ``22'', ``23-F'', 
``27'', ``27-A'', ``27-B'', ``38-C'', ``39'', ``39-A'', ``42'', and 
``46''; and
0
c. Revising the entries for ``Ethyl acetate'', and ``Toluene''; and
0
d. Adding entries for ``Alkylate'', ``Cornmint oil'', ``Cyclohexane'', 
``Distilled lime oil'', ``Ethyl tertiary butyl ether'', ``Hexane'', 
``n-Hexane'', ``High octane denaturant blend'', ``L(-)-Carvone'', 
``Lemon oil'', ``Methyl tertiary butyl ether'', ``Naphtha'', ``Natural 
gasoline'', ``Peppermint oil, terpeneless.'', ``Poloxamer 407 N.F.'', 
``Potassium hydroxide'', ``Raffinate'', and ``Straight run gasoline''.
    The revisions and additions read as follows:


Sec.  21.151  List of denaturants authorized for denatured spirits.

* * * * *

Alkylate..................................  C.D.A. 20.
 

* * * * *

Cornmint oil..............................  S.D.A. 38-B.
Cyclohexane...............................  S.D.A. 3-A.
 

* * * * *

Distilled lime oil........................  S.D.A. 38-B.
 

* * * * *

Ethyl acetate.............................  C.D.A. 35; S.D.A. 29, 35-A.
 

* * * * *

Ethyl tertiary butyl ether................  C.D.A. 20.
 

* * * * *

Hexane....................................  S.D.A. 2-B.
n-Hexane..................................  S.D.A. 2-B.
 

* * * * *

High octane denaturant blend..............  C.D.A. 20.
 

* * * * *

L(-)-Carvone..............................  S.D.A. 38-B.
 

* * * * *

Lemon oil.................................  S.D.A. 38-B.
 

* * * * *

Methyl tertiary butyl ether...............  C.D.A. 20.
 

* * * * *

Naphtha...................................  C.D.A. 20.
Natural gasoline..........................  C.D.A. 20.
 

* * * * *

Peppermint oil, terpeneless...............  S.D.A. 38-B.
 

* * * * *

Poloxamer 407, N.F........................  S.D.A. 38-F.
 

* * * * *

Potassium hydroxide.......................  S.D.A. 36.
 

* * * * *

Raffinate.................................  C.D.A. 20.
 

* * * * *

Straight run gasoline.....................  C.D.A. 20.
 

* * * * *

Toluene...................................  C.D.A. 12-A; S.D.A. 2-B.
 

* * * * *


Sec.  21.161   [Amended]

0
106. In Sec.  21.161, the table is revised by removing the entries for 
``2-C'', ``3-B'', ``6-B'', ``12-A'', ``17'', ``20'', ``22'', ``23-F'', 
``27'', ``27-A'', ``27-B'', ``33'', ``35 \3\'', ``35 \4\'', ``38-C'', 
``39'', ``39-A'', ``42'', and ``46''.

PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER

0
107. The authority citation for part 27 is revised to read as follows:

    Authority:  5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 
5001, 5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121-5124, 5201, 
5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805.

[[Page 59464]]


0
108. Section 27.222 is added to read as follows:


Sec.  27.222  Importation of denatured spirits and fuel alcohol.

    Denatured spirits and fuel alcohol are treated as spirits for 
purposes of this part and are subject to tax pursuant to Sec.  
27.40(a). The tax must be paid upon importation, with only two 
exceptions: Spirits may be withdrawn from customs custody free of tax 
for the use of the United States under subpart M of this part; and 
spirits may be withdrawn from customs custody and transferred to a 
distilled spirits plant, including a bonded alcohol fuel plant, without 
payment of tax under subpart L of this part. After transfer pursuant to 
subpart L, denatured spirits or fuel alcohol may be withdrawn free of 
tax in accordance with part 19 of this chapter if they meet the 
standards to conform either to a denatured spirits formula specified in 
part 21 of this chapter (for withdrawal from a regular distilled 
spirits plant) or a formula specified in Sec.  19.746 of this chapter 
(for withdrawal from an alcohol fuel plant). Such withdrawal is 
permitted, even though the denaturation or rendering unfit for beverage 
use may have occurred, in whole or in part, in a foreign country. For 
purposes of this chapter, the denaturation or rendering unfit is deemed 
to have occurred at the distilled spirits plant (including the alcohol 
fuel plant), the proprietor of which is responsible for compliance with 
part 21 or Sec.  19.746, as the case may be. Imported fuel alcohol 
shall also conform to the requirements of 27 CFR 19.742.

PART 28--EXPORTATION OF LIQUORS

0
109. The authority citation for part 28 continues to read as follows:

    Authority:  5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 
5001, 5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205, 
5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 U.S.C. 203, 205, 
44 U.S.C. 3504(h).

0
110. Section 28.157 is added to read as follows:


Sec.  28.157  Exportation by dealer in specially denatured spirits.

    A dealer in specially denatured spirits who holds a permit under 
part 20 of this chapter may export specially denatured spirits in 
accordance with Sec.  20.183 of this chapter.

    Signed: July 6, 2016.
John J. Manfreda,
Administrator.
    Approved: July 7, 2016.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2016-20712 Filed 8-29-16; 8:45 am]
 BILLING CODE 4810-31-P