[Federal Register Volume 85, Number 191 (Thursday, October 1, 2020)]
[Proposed Rules]
[Pages 61895-61899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17628]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2020-0010; Notice No. 195]
RIN 1513-AC71


Proposed Establishment of the Virginia Peninsula Viticultural 
Area

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to 
establish the 673,059-acre ``Virginia Peninsula'' viticultural area in 
southeastern Virginia. The proposed viticultural area is not located 
within, nor does it contain, any other established viticultural area. 
TTB designates viticultural areas to allow vintners to better describe 
the origin of their wines and to allow consumers to better identify 
wines they may purchase. TTB invites comments on this proposed addition 
to its regulations.

DATES: Comments must be received by November 30, 2020.

ADDRESSES: You may electronically submit comments to TTB on this 
proposal, and view copies of this document, its supporting materials, 
and any comments TTB receives on it within Docket No. TTB-2020-0010 as 
posted on Regulations.gov (https://www.regulations.gov), the Federal e-
rulemaking portal. Please see the ``Public Participation'' section of 
this document below for full details on how to comment on this proposal 
via Regulations.gov or U.S. mail, and for full details on how to obtain 
copies of this document, its supporting materials, and any comments 
related to this proposal.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW, Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels, and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated the functions 
and duties in the administration and enforcement of these provisions to 
the TTB Administrator through Treasury Order 120-01, dated December 10, 
2013, (superseding Treasury Order 120-01, dated January 24, 2003).
    Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to 
establish definitive viticultural areas and regulate the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) sets 
forth standards for the preparation and submission of petitions for the 
establishment or modification of American viticultural areas (AVAs) and 
lists the approved AVAs.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region having distinguishing features, as described in part 9 
of the regulations, and a name and a delineated boundary, as 
established in part 9 of the regulations. These designations allow 
vintners and consumers to attribute a given quality, reputation, or 
other characteristic of a wine made from grapes grown in an area to the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA is neither an approval nor an endorsement by TTB of the wine 
produced in that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and provides that any 
interested party may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
standards for petitions for the establishment or modification of AVAs. 
Petitions to establish an AVA must include the following:
     Evidence that the area within the proposed AVA boundary is 
nationally or locally known by the AVA name specified in the petition;
     An explanation of the basis for defining the boundary of 
the proposed AVA;
     A narrative description of the features of the proposed 
AVA affecting viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed AVA distinctive and 
distinguish it from adjacent areas outside the proposed AVA boundary;
     The appropriate United States Geological Survey (USGS) 
map(s) showing the location of the proposed AVA, with the boundary of 
the proposed AVA clearly drawn thereon; and
     A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

Virginia Peninsula Petition

    TTB received a petition from the Williamsburg Winery proposing to 
establish the 673,059-acre ``Virginia Peninsula'' AVA. The proposed AVA 
is

[[Page 61896]]

located in southeastern Virginia and encompasses the counties of James 
City, York, New Kent, and Charles City, as well as the independent 
cities of Poquoson, Hampton, Newport News, and Williamsburg. At the 
time the petition was submitted, the proposed AVA had 5 commercial 
vineyards, covering a total of approximately 112 acres. According to 
the petition, an additional 61 acres of vineyards are planned for 
planting in the near future. In addition, there are 5 wineries located 
within the proposed AVA.
    According to the petition, the distinguishing features of the 
proposed Virginia Peninsula AVA are its geology and climate. Unless 
otherwise noted, all information and data pertaining to the proposed 
AVA contained in this proposed rule come from the petition for the 
proposed Virginia Peninsula AVA and its supporting exhibits.

Name Evidence

    The proposed Virginia Peninsula AVA is located on Virginia's 
southernmost peninsula on the western shore of the Chesapeake Bay. The 
petition included multiple examples of local, State, and Federal 
websites that refer to the region of the proposed AVA as ``Virginia 
Peninsula.'' For example, the government website for New Kent County, 
which is located within the proposed AVA, notes that the county 
airport's location ``on the Virginia Peninsula'' allows visitors easy 
access to various historic and natural recreational sites.\1\ The 
Virginia travel and tourism site's web page for the city of Hampton, 
which is within the proposed AVA, notes that the city is ``located on 
the Virginia Peninsula.'' \2\ Finally, the National Weather Service's 
website includes a web page titled ``The Hurricane History of Central 
and Eastern Virginia'' which notes that Hurricane Ernesto caused 
significant damage ``across portions of the Virginia Peninsula'' \3\ in 
2006.
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    \1\ www.co.new-kent.va.us/index.aspx?nid=177.
    \2\ virginia.org/cities/Hampton/.
    \3\ www.weather.gov/media/akq/miscNEWS/hurricanehistory.pdf.
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    The petition also included examples of various businesses and 
organizations within the proposed AVA that use the term ``Virginia 
Peninsula'' in their names. For example, the Virginia Peninsula 
Foodbank, the Virginia Peninsula Rotary Club, and the Virginia 
Peninsula Regional Jail all serve the region of the proposed AVA. Other 
examples include the Virginia Peninsula Association of Realtors, the 
Virginia Peninsula Chamber of Commerce, and the Virginia Peninsula 
Public Service Authority.

Boundary Evidence

    The proposed Virginia Peninsula AVA is located on the natural 
feature known as the Virginia Peninsula in southeastern Virginia. The 
northern, eastern, and southern boundaries of the proposed AVA follow 
the natural features that delineate the peninsula. The York River forms 
the northern boundary of both the peninsula and the proposed AVA, while 
the James River forms the southern boundary. The eastern boundary of 
the proposed AVA is formed by the Chesapeake Bay. According to the 
petition, the western boundary of the peninsula is less precisely 
defined and is marked by a change in elevation and soil type. In order 
to approximate this change in elevation and soil, the petition places 
the western boundary of the proposed AVA east of the city of Richmond, 
along the western boundary of New Kent County and Charles City County.

Distinguishing Features

    The distinguishing features of the proposed Virginia Peninsula AVA 
are its geology and climate.
Geology
    According to the petition, the geology of the proposed AVA serves 
to distinguish it from the region to the west. The proposed Virginia 
Peninsula AVA, along with the regions to the north and south, is 
located on the Atlantic Coastal Plain, a region of low topographic 
relief with elevations ranging from sea level to approximately 250 
feet. The Atlantic Coastal Plain is underlain by Cenozoic-era sand, 
mud, and gravel which were deposited during periods of higher sea 
levels. These sediments are geologically young, ranging from 4 to 5 
million years in age to less than 100,000 years. As a result, very few 
fault lines are found within the Atlantic Coastal Plain. According to 
the petition, the geological formations of the proposed AVA are ideal 
for viticulture, as the bedrock tends to be fractured, allowing for 
greater root depth and greater rainfall permeability.
    To the west of the proposed Virginia Peninsula AVA are the Hopewell 
fault and the Atlantic Seaboard Fall Line, which mark the beginning of 
the Piedmont and Blue Ridge regions of Virginia. The geology of these 
regions consists of igneous and metamorphic rock, including granite and 
gneiss. The bedrock is older than that of the proposed AVA, dating back 
approximately 700 million years to the Precambrian age. The bedrock is 
less porous and less fractured than the bedrock of the proposed AVA. As 
a result, neither grapevine roots nor rain can penetrate as deeply as 
within the more fractured bedrock of the proposed AVA.
Climate
    The proposed Virginia Peninsula AVA is characterized by a humid 
subtropical climate, with long, humid summers and moderate to mild 
winters. The petition included on the average growing season high and 
low temperatures, growing season maximum high and minimum low 
temperatures, and the annual number of days during the growing season 
with temperatures over 90 and 100 degrees Fahrenheit (F) for locations 
within the proposed AVA, to the north, and to the south. Additionally, 
the petition included data on the average annual and harvest period 
rainfall amounts for the same locations. Data was not provided for the 
region to the west. The data was collected from 2013 to 2017 and is 
reproduced in the following tables.
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    \4\ ``Growing season'' is defined in the petition as the period 
from the last spring frost to the first fall frost. The length of 
the growing season varies from year to year but typically lasts from 
April 10 to November 8.

                                                   Table 1--2013-2017 Growing Season \4\ Temperatures
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                                                                                                                           Average days    Average days
         Location  (direction from proposed AVA)           Average high     Average low       Average         Average        over  90        over  100
                                                                                           maximum  high   Minimum  Low      Degrees F       Degrees F
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Williamsburg (within)...................................              84              65             100              35              57             2.6
West Point (North)......................................              81              61              96              32              32               0
Surry (South)...........................................              80              62              95              35              17               0
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[[Page 61897]]


                                                               Table 2--2013-2017 Rainfall
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                                                                               Average harvest                                          Average  number
                                                             Average annual       period \5\      Average  number    Average  number    of harvest days
         Location  (direction from proposed AVA)            rainfall amounts   rainfall  totals   of  harvest days   of  harvest days   with  over \1/2\
                                                              (in inches)        (in inches)         with rain         without rain      inch  of rain
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Williamsburg (within)....................................               40.4                  7                 21                 59                4.8
West Point (North).......................................               36.5                4.8               19.2               58.2                  2
Surry (South)............................................                 43               10.4               24.8               51.4                6.2
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    The climate data suggests that the proposed Virginia Peninsula AVA 
has temperatures that are warmer than the regions to the north and 
south. Rainfall amounts in the proposed AVA are generally greater than 
in the region to the north and lower than in the region to the south.
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    \5\ The petition defines the harvest period as the period from 
August 21 to November 8.
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    According to the petition, temperatures above 90 degrees F reduce 
photosynthesis in grapevines. Because photosynthesis is the process 
which produces sugar, reduced photosynthesis rates would require fruit 
to hang longer to achieve optimal sugar levels. The longer hang time 
increases the risk of disease or animals destroying a crop before it 
can be harvested. The petition states that, on average, almost 30 
percent of the growing season days within the proposed AVA have 
temperatures above 90 degrees. Additionally, frequent rains during the 
harvest period, particularly rainfall amounts over \1/2\ inch, can 
cause ripening fruit to swell or split and can dilute flavors. The high 
growing season temperatures combined with frequent rainfall during the 
typical harvest season mean that vineyard managers frequently face the 
decision whether to pick grapes before they've reached peak ripeness, 
or to let the fruit continue to ripen but potentially spoil.

Summary of Distinguishing Features

    The evidence provided in the petition indicates that the geology 
and climate of the proposed Virginia Peninsula AVA distinguish it from 
the surrounding regions in each direction. The proposed AVA is located 
on the Atlantic Coastal Plain, which is comprised of geologically young 
sand, mud, and gravel over fractured bedrock. The geology of the 
proposed AVA is distinct from that of the region to the west, which is 
made up of the Piedmont and Blue Ridge regions, which are comprised of 
geologically older igneous and metamorphic rock over less-fractured 
bedrock. Climate distinguishes the proposed AVA from the regions to the 
north and south, with average maximum and minimum temperatures being 
warmer in the proposed AVA than in both of the other regions. 
Additionally, when compared to the region to the south, the proposed 
AVA has lower average annual rainfall amounts and more harvest days 
without rainfall. Average annual and harvest period rainfall amounts in 
the proposed AVA are higher than those within the region to the north.

TTB Determination

    TTB concludes that the petition to establish the approximately 
673,059-acre ``Virginia Peninsula'' AVA merits consideration and public 
comment, as invited in this document.

Boundary Description

    See the narrative boundary descriptions of the petitioned-for AVA 
in the proposed regulatory text published at the end of this document.

Maps

    The petitioner provided the required maps, and they are listed 
below in the proposed regulatory text. You may also view the proposed 
Virginia Peninsula AVA boundary on the AVA Map Explorer on the TTB 
website, at https://www.ttb.gov/wine/ava-map-explorer.

Impact on Current Wine Labels

    Part 4 of the TTB regulations prohibits any label reference on a 
wine that indicates or implies an origin other than the wine's true 
place of origin. For a wine to be labeled with an AVA name, at least 85 
percent of the wine must be derived from grapes grown within the area 
represented by that name, and the wine must meet the other conditions 
listed in Sec.  4.25(e)(3) of the TTB regulations (27 CFR 4.25(e)(3)). 
If the wine is not eligible for labeling with an AVA name and that name 
appears in the brand name, then the label is not in compliance and the 
bottler must change the brand name and obtain approval of a new label. 
Similarly, if the AVA name appears in another reference on the label in 
a misleading manner, the bottler would have to obtain approval of a new 
label. Different rules apply if a wine has a brand name containing an 
AVA name that was used as a brand name on a label approved before July 
7, 1986. See Sec.  4.39(i)(2) of the TTB regulations (27 CFR 
4.39(i)(2)) for details.
    If TTB establishes this proposed AVA, its name, ``Virginia 
Peninsula,'' will be recognized as a name of viticultural significance 
under Sec.  4.39(i)(3) of the TTB regulations (27 CFR 4.39(i)(3)). The 
text of the proposed regulation clarifies this point. Consequently, 
wine bottlers using ``Virginia Peninsula'' in a brand name, including a 
trademark, or in another label reference as to the origin of the wine, 
would have to ensure that the product is eligible to use the AVA name 
as an appellation of origin if this proposed rule is adopted as a final 
rule.

Public Participation

Comments Invited

    TTB invites comments from interested members of the public on 
whether it should establish the proposed Virginia Peninsula AVA. TTB is 
interested in receiving comments on the sufficiency and accuracy of the 
name, boundary, geology, climate, and other required information 
submitted in support of the AVA petition. Please provide any available 
specific information in support of your comments.
    Because of the potential impact of the establishment of the 
proposed Virginia Peninsula AVA on wine labels that include the term 
``Virginia Peninsula,'' as discussed above under Impact on Current Wine 
Labels, TTB is particularly interested in comments regarding whether 
there will be a conflict between the proposed area name and currently 
used brand names. If a commenter believes that a conflict will arise, 
the comment should describe the nature of that conflict, including any 
anticipated negative economic impact that approval of the proposed AVA 
will have on an existing viticultural enterprise. TTB is also 
interested in receiving suggestions for ways to avoid conflicts, for 
example, by adopting a modified or different name for the proposed AVA.

[[Page 61898]]

Submitting Comments

    You may submit comments on this proposal by using one of the 
following two methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this document within Docket No. TTB-
2020-0010 on ``Regulations.gov,'' the Federal e-rulemaking portal, at 
https://www.regulations.gov. A direct link to that docket is available 
under Notice No. 195 on the TTB website at https://www.ttb.gov/wine/wine-rulemaking.shtml. Supplemental files may be attached to comments 
submitted via Regulations.gov. For complete instructions on how to use 
Regulations.gov, visit the site and click on the ``Help'' tab at the 
top of the page.
     U.S. Mail: You may send comments via postal mail to the 
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005.
    Please submit your comments by the closing date shown above in this 
document. Your comments must reference Notice No. 195 and include your 
name and mailing address. Your comments also must be made in English, 
be legible, and be written in language acceptable for public 
disclosure. TTB does not acknowledge receipt of comments, and TTB 
considers all comments as originals.
    Your comment must clearly state if you are commenting on your own 
behalf or on behalf of an organization, business, or other entity. If 
you are commenting on behalf of an organization, business, or other 
entity, your comment must include the entity's name, as well as your 
name and position title. If you comment via Regulations.gov, please 
enter the entity's name in the ``Organization'' blank of the online 
comment form. If you comment via postal mail, please submit your 
entity's comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    TTB will post, and you may view, copies of this document, selected 
supporting materials, and any online or mailed comments received about 
this proposal within Docket No. TTB-2020-0010 on the Federal e-
rulemaking portal, Regulations.gov, at https://www.regulations.gov. A 
direct link to that docket is available on the TTB website at https://www.ttb.gov/wine/wine-rulemaking.shtml under Notice No. 195. You may 
also reach the relevant docket through the Regulations.gov search page 
at https://www.regulations.gov. For instructions on how to use 
Regulations.gov, click on the site's ``Help'' tab at the top of the 
page.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including email addresses. TTB may omit voluminous 
attachments or material that it considers unsuitable for posting.
    You may also obtain copies of this proposed rule, all related 
petitions, maps and other supporting materials, and any electronic or 
mailed comments that TTB receives about this proposal at 20 cents per 
8.5 x 11-inch page. Please note that TTB is unable to provide copies of 
USGS maps or any similarly-sized documents that may be included as part 
of the AVA petition. Contact TTB's Regulations and Rulings Division by 
email using the web form at https://www.ttb.gov/contact-rrd, or by 
telephone at 202-453-1039, ext. 175, to request copies of comments or 
other materials.

Regulatory Flexibility Act

    TTB certifies that this proposed regulation, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. The proposed regulation imposes no new reporting, 
recordkeeping, or other administrative requirement. Any benefit derived 
from the use of an AVA name would be the result of a proprietor's 
efforts and consumer acceptance of wines from that area. Therefore, no 
regulatory flexibility analysis is required.

Executive Order 12866

    It has been determined that this proposed rule is not a significant 
regulatory action as defined by Executive Order 12866. Therefore, no 
regulatory assessment is required.

Drafting Information

    Karen A. Thornton of the Regulations and Rulings Division drafted 
this document.

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, we propose to amend 
title 27, chapter I, part 9, Code of Federal Regulations, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

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

    Authority:  27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Subpart C is amended by adding Sec.  9.___ to read as follows:


Sec.  9.___  Virginia Peninsula.

    (a) Name. The name of the viticultural area described in this 
section is ``Virginia Peninsula''. For purposes of part 4 of this 
chapter, ``Virginia Peninsula'' is a term of viticultural significance.
    (b) Approved maps. The 5 United States Geological Survey (USGS) 
1:100,000 scale topographic maps used to determine the boundary of the 
Virginia Peninsula viticultural area are titled:
    (1) Norfolk, Virginia-North Carolina; 1985;
    (2) Petersburg, Virginia, 1984;
    (3) Richmond, Virginia, 1984;
    (4) Tappahannock, Virginia-Maryland; 1984; and
    (5) Williamsburg, Virginia, 1984.
    (c) Boundary. The Virginia Peninsula viticultural area is located 
in James City, York, New Kent, and Charles City Counties, Virginia, as 
well as the independent Virginia cities of Poquoson, Hampton, Newport 
News, and Williamsburg. The boundary of the Virginia Peninsula 
viticultural area is as described below:
    (1) The beginning point is on the Norfolk, Virginia-North Carolina 
map at the intersection of the Newport News City boundary and the James 
River Bridge. From the beginning point, proceed northwesterly along the 
Newport News City boundary to the point in the James River where the 
city boundary becomes concurrent with the James City County boundary; 
then
    (2) Proceed northwesterly along the James City County boundary to 
the point where it becomes concurrent with the Charles City County 
boundary; then

[[Page 61899]]

    (3) Proceed along the Charles City County boundary, crossing onto 
the Petersburg, Virginia, map and continuing along the Charles City 
County boundary to the point where it intersects the Henrico County 
boundary at Turkey Island Creek; then
    (4) Proceed north-northeasterly along the concurrent Henrico 
County-Charles City County boundary to its intersection with the 
Chickahominy River, which is concurrent with the New Kent County 
boundary; then
    (5) Proceed northwesterly along the Chickahominy River-New Kent 
County boundary, crossing onto the Richmond, Virginia, map to its 
intersection with the Hanover County boundary; then
    (6) Proceed northeasterly along the Hanover County-New Kent County 
boundary to its intersection with the King William County boundary at 
the Pamunkey River; then
    (7) Proceed southeasterly along the King William County-New Kent 
County boundary, crossing onto the Tappahannock, Virginia-Maryland map, 
to the intersection of the concurrent county boundary with the York 
River; then
    (8) Proceed southeasterly along the York River, crossing onto the 
Williamsburg, Virginia map, to the intersection of the river with the 
Chesapeake Bay north of Tue Point; then
    (9) Proceed southeast in a straight line to the shoreline of Marsh 
Point; then
    (10) Proceed southeasterly, then southwesterly along the shoreline 
to the Hampton Roads Bridge-Tunnel; then
    (11) Proceed southwest in a straight line, crossing onto the 
Norfolk, Virginia-North Carolina map, to the northeastern terminus of 
the Hampton City boundary; then
    (12) Proceed southwesterly along the Hampton City boundary to the 
point where it intersects with the Newport News City boundary; then
    (13) Proceed southwesterly, then northwesterly along the Newport 
News City boundary, returning to the beginning point.

     Signed: July 22, 2020.
Mary G. Ryan,
Acting Administrator.
     Approved: August 3, 2020.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 2020-17628 Filed 9-30-20; 8:45 am]
BILLING CODE 4810-31-P