[Federal Register Volume 87, Number 101 (Wednesday, May 25, 2022)]
[Proposed Rules]
[Pages 31787-31793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10589]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 4, 5, 19, 24, 26, and 27

[Docket No. TTB-2022-0004; Notice No. 210]
RIN 1513-AC86


Standards of Fill for Wine and Distilled Spirits

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Alcohol and Tobacco Tax and Trade Bureau 
(TTB) proposes to amend the regulations governing wine and distilled 
spirits containers. TTB is proposing to add 10 additional authorized 
standards of fill for wine, along with related technical and other 
harmonizing changes. TTB also is considering, as an alternative, 
eliminating all but a minimum standard of fill for wine containers and 
all but a minimum and maximum for distilled spirits containers, thus 
potentially eliminating unnecessary regulatory requirements, reducing 
barriers to competition, and providing consumers broader purchasing 
options.

DATES: Comments must be received on or before July 25, 2022.

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-2022-0004 as 
posted at https://www.regulations.gov. A direct link to that docket is 
available on the TTB website at https://www.ttb.gov/laws-and-regulations/all-rulemaking under Notice No. 210. Alternatively, you may 
submit comments via postal mail to the Director, Regulations and Ruling 
Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, 
Box 12, Washington, DC 20005. Please see the Public Participation 
section of this document for further information on the comments 
requested regarding this proposal and on the submission, 
confidentiality, and public disclosure of comments.

FOR FURTHER INFORMATION CONTACT: Caroline Hermann, Alcohol and Tobacco 
Tax and Trade Bureau, Regulations and Rulings Division; telephone 202-
453-1039, ext. 256.

SUPPLEMENTARY INFORMATION:

Background

TTB Authority

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers 
regulations setting forth standards of fill for containers of beverage 
distilled spirits and wine products distributed within the United 
States.
    The authority to establish these standards is based on two 
provisions of law: (1) Section 5301(a) of the Internal Revenue Code of 
1986 (IRC), codified at 26 U.S.C. 5301(a) in the case of distilled 
spirits, and (2) section 105(e) of the Federal Alcohol Administration 
Act (FAA Act), codified at 27 U.S.C. 205(e), for both distilled spirits 
and wine. Section 5301(a) of the IRC authorizes the Secretary of the 
Treasury to prescribe regulations ``to regulate the kind, size, 
branding, marking, sale, resale, possession, use, and reuse of 
containers (of a capacity of not more than 5 wine gallons) designed or 
intended for use for the sale of distilled spirits . . .'' when the 
Secretary determines that such action is necessary to protect the 
revenue. Section 105(e) of the FAA Act authorizes the Secretary of the 
Treasury to prescribe regulations relating to the ``packaging, marking, 
branding, and labeling and size and fill'' of alcohol beverage 
containers ``as will prohibit deception of the consumer with respect to 
such products or the quantity thereof . . . .''
    TTB administers regulations setting forth the tax tolerance for 
containers of wine products based on sections 5041(e) and 5368 of the 
IRC. TTB administers the IRC and FAA Act pursuant to section 1111(d) of 
the Homeland Security Act of 2002, as codified at 6 U.S.C. 531(d). In 
addition, the Secretary of the Treasury has delegated certain 
administrative and enforcement authorities to TTB through Treasury 
Department Order 120-01.

Current Standards of Fill for Wine

    The standards of fill for wine are contained in subpart H of part 4 
of the TTB regulations (27 CFR part 4). The term ``standard of fill'' 
is used in the TTB regulations and in this document to refer to the 
authorized amount of liquid in the container, rather than the size or 
capacity of the container itself. For better readability, however, this 
document sometimes uses the terms ``size'' or ``container size'' and 
``standards of fill'' interchangeably. Within subpart H, paragraph (a) 
of Sec.  4.72 (27 CFR 4.72(a)) authorizes the use of the following 
metric standards of fill for containers, in addition to those described 
in paragraph (b) which are discussed further below:
     3 liters;
     1.5 liters;
     1 liter;
     750 milliliters;
     500 milliliters;
     375 milliliters;
     355 milliliters;
     250 milliliters;
     200 milliliters;
     187 milliliters;
     100 milliliters; and
     50 milliliters.
    Paragraph (b) of Sec.  4.72 states that wine may be bottled or 
packed in containers of 4 liters or larger if the containers are filled 
and labeled in quantities of even liters (4 liters, 5 liters, 6 liters, 
etc.).

Current Standards of Fill for Distilled Spirits

    The standards of fill for distilled spirits are contained in 
subpart K of part 5 of the TTB regulations (27 CFR part 5). Note that 
these standards of fill were contained in subpart E of part 5 until 
March 11, 2022, when the reorganization of part 5 went into effect 
pursuant to TTB's recent final rule, Modernization of the Labeling and 
Advertising Regulations for Distilled Spirits and Malt Beverages (T.D. 
TTB-176, February 9, 2022, 87 FR 7526).
    Within subpart K, paragraph (a)(1) of Sec.  5.203 (27 CFR 
5.203(a)(1)) specifies the following metric standards of fill for 
containers other than those described in paragraph (a)(2) of that 
section:
     1.8 Liters.
     1.75 Liters.
     1 Liter.
     900 mL.
     750 mL.
     720 mL.
     700 mL.
     375 mL.
     200 mL.
     100 mL.
     50 mL.
    In the case of distilled spirits in metal containers that have the 
general shape

[[Page 31788]]

and design of a can, that have a closure which is an integral part of 
the container, and that cannot be readily reclosed after opening, 
paragraph (a)(2) of Sec.  5.203 authorizes the use of the following 
metric standards of fill:
     355 mL.
     200 mL.
     100 mL.
     50 mL.
    In addition to the metric standards specified above, Sec.  5.203 
contains provisions regarding tolerances (discrepancies between actual 
and stated fill), unreasonable shortages in fill, and distilled spirits 
bottled or imported before January 1, 1980, and marketed or released 
from customs custody on or after that date (the date on which the U.S. 
volumetric standards were replaced by the Sec.  5.203 metric 
standards).

Notice Nos. 182 and 183

    On July 1, 2019, TTB published in the Federal Register Notice No. 
182, Elimination of Certain Standards of Fill for Wine, and Notice No. 
183, Elimination of Certain Standards of Fill for Distilled Spirits; 
Amendment of Malt Beverage Net Content Labeling Regulation (84 FR 31257 
and 84 FR 31264). The two documents proposed to eliminate most 
standards of fill for wine and distilled spirits. Both documents 
proposed to maintain a minimum standard of fill of 50 milliliters to 
ensure sufficient space on the container for required labeling. Notice 
No. 183 also proposed a maximum standard of fill of 3.785 liters (one 
gallon) for distilled spirits, which corresponds to the FAA Act 
definition of a bulk container for distilled spirits, codified at 27 
U.S.C. 206(c). In addition, the documents also sought comments on the 
relative merits of alternatives, such as adding new authorized 
standards of fill.
    Notice No. 182 described a number of petitions and inquiries that 
TTB had received over the course of several years requesting the 
approval of new standards of fill for wine. TTB requested comments on 
adding the requested sizes. TTB addressed the comments it had received 
and added certain of the proposed standards of fill to the TTB 
regulations through publication of a final rule, T.D. TTB-165, on 
December 29, 2020 (85 FR 85514).
    In the final rule, TTB also described an agreement between the 
United States and Japan that included a commitment for the United 
States to engage in rulemaking on certain standards of fill, described 
more fully below. TTB stated in the final rule that TTB would conduct 
additional rulemaking to propose the addition of new standards of fill 
for wine, including the 180, 300, 360, 550, and 720 milliliters and 1.8 
liters sizes. Japanese government entities and Japanese industry 
associations requested the addition of those sizes during the comment 
period for Notice No. 182, and they were included in a Side Letter 
signed as part of the U.S.-Japan Trade Agreement.
    Given that TTB is requesting comment on additional wine sizes 
pursuant to a Side Letter to the U.S.-Japan Trade Agreement, this 
document provides a new opportunity for commenters to provide 
information on three wine standards of fill that TTB proposed in Notice 
No. 182, but did not incorporate into the regulations in the final 
rule. TTB received only two, one, and zero comments on the 620 
milliliters, 700 milliliters, and 2.25 liters sizes, respectively. TTB 
found that these comments did not provide sufficient information to 
make a determination on these sizes, and therefore TTB did not 
incorporate these sizes into the regulations at that time. TTB 
summarizes the petition and inquiries for those sizes below.

620 Milliliters

    TTB has received several inquiries over the years regarding the 
importation of the French product known as ``vin jaune'' (``yellow 
wine'' in English). Vin jaune is made in the Jura region of France, 
using a technique similar to that used for making sherry. In accordance 
with French and European Union regulations, it must be sold in a 620-
milliliter bottle. Since 620 milliliters is not an authorized size in 
Sec.  4.72, vin jaune cannot be imported into the United States in a 
container with a 620 milliliter standard of fill. The two commenters to 
Notice No. 182 who specifically addressed this size stated generally 
that the 620 milliliters size is available internationally and its 
approval would facilitate trade. After the completion of Notice No. 
182, a number of U.S. importers submitted petitions for the 620 
milliliters size to TTB. The petitions state that vin jaune is 
historically and currently bottled in the 620 milliliters size and 
request the change so that U.S. importers can legally import the wine 
in the traditional 620 milliliter size.

700 Milliliters

    TTB has received inquiries from foreign governments regarding the 
700 milliliter size for wine. Among them was a 2007 request from the 
Government of Moldova asking that TTB waive the standards of fill 
requirements for importations of Moldovan wine. At the time, Moldova 
reported that it had over a million bottles of aged wine in its 
National Treasury of Wine that could not be sold in the United States 
due to the U.S. bottle size limitations. Also in 2007, the Government 
of Georgia requested that TTB add the 700-milliliter bottle to the 
authorized standards of fill. It stated that the 700-milliliter bottle 
was a standard size in the former Soviet Union, and the addition of the 
700-milliliter standard of fill in the TTB regulations would eliminate 
a restriction on the sale of Georgian wines in the United States. A 
commenter to Notice No. 182 recommended approval of the 700 milliliters 
size because it is consistent with containers available 
internationally.

2.25 Liters

    TTB received a petition from an importer of boxed wine requesting 
that the agency authorize a standard of fill of 2.25 liters for wine 
containers. The importer stated that such a container would 
significantly reduce the environmental impact of wine packaging because 
it holds as much as three 750-milliliter wine bottles at half the 
weight of such bottles. TTB received no comments on Notice No. 182 
specifically addressing the 2.25 liters size.

New Petition for 330 Milliliters

    After the publication of T.D. TTB-165, TTB received a petition from 
a South African wine exporter requesting the approval of 330 
milliliters as a standard of fill for wine. The petitioner stated that 
330 milliliters is the standard can size for beer and soda products in 
South Africa and in most European countries, unlike in the U.S. where 
the standard size is 355 milliliters. The petitioner states they would 
like to export to the United States but cannot procure cans in the 355 
milliliters size in South Africa.

U.S.-Japan Trade Agreement

    On October 7, 2019, the United States and Japan reached an 
agreement (the Agreement) on market access for certain agriculture and 
industrial goods. On December 30, 2019, the U.S. published a document 
in the Federal Register (84 FR 72187) to implement the Agreement, 
effective January 1, 2020. As part of the Agreement, the United States 
Government reached a Side Letter agreement with Japan dated October 7, 
2019, which addresses issues related to alcohol beverages, including 
standards of fill (``Side Letter''). See https://ustr.gov/sites/default/files/files/agreements/japan/Letter_Exchange_on_Alcoholic_Beverages.pdf. The Side

[[Page 31789]]

Letter states that the U.S. Department of the Treasury will take final 
action on Notice Nos. 182 and 183. If the final action does not address 
certain sizes--180, 300, 360, 550, and 720 milliliters and 1.8 liters 
for wine, and 700, 720, and 900 milliliters and 1.8 liters for 
distilled spirits--then the U.S. Department of the Treasury shall 
undertake new rulemaking proposing those sizes, and take final action 
in respect to that rulemaking. The Side Letter took effect with the 
U.S.-Japan Trade Agreement, which entered into force on January 1, 
2020.
    The distilled spirits sizes listed in the Side Letter were all 
referenced in Notice No. 183, and TTB described in that document the 
petitions from three Japanese trade associations and a Japanese 
government agency for those sizes. The same entities submitted comments 
that supported the elimination of standards of fill generally, but 
further stated that if the standards are not eliminated they support 
the approval of their petitioned-for sizes. The wine sizes listed in 
the Side Letter were not referenced in Notice No. 182, as TTB had not 
previously received petitions for those sizes. TTB did receive comments 
from a Japanese trade association and a Japanese government agency 
proposing the approval of those sizes. The two comments supported the 
elimination of the standards of fill, but requested the approval of the 
180, 300, 360, 550, and 720 milliliters and 1.8 liters sizes for wine 
if the standards of fill for wine were not eliminated. The two 
commenters did not provide any reasons that TTB should approve these 
specific sizes, though the Japanese government agency generally 
referenced its ``proactive efforts for the sound development'' of 
Japan's liquor industry.
    Because the requested wine sizes--180, 300, 360, 550, and 720 
milliliters, and 1.8 liters--were not referenced in Notice No. 182, TTB 
is proposing the addition of those sizes to Sec.  4.72 in this 
notification to ensure that the public is given ample opportunity to 
provide comment on the sizes.

Competition Report

    On February 9, 2022, the Department of the Treasury released a 
report, ``Competition in the Markets for Beer, Wine, and Spirits,'' 
that recommended rulemaking to ``again consider eliminating the 
standards of fill requirements.'' See Treasury Report on Competition in 
the Markets for Beer, Wine, and Spirits (February 9, 2022), available 
at https://home.treasury.gov/system/files/136/Competition-Report.pdf. 
That report, produced in response to Executive Order 14036, ``Promoting 
Competition in the American Economy'' (published July 9, 2022, at 86 FR 
36987), noted that ``[c]ontainer size requirements can be a barrier to 
innovation and competition, insofar as producers must conform their 
packaging to the Treasury-mandated sizes.'' TTB has received questions 
regarding standards of fill from industry members struggling to source 
compliant containers in the current market.

TTB Proposals

Proposed Standards of Fill (Alternative 1)

    For the reasons described above, TTB is proposing to add the six 
standards of fill for wine listed in the Side Letter discussed above--
180, 300, 360, 550, and 720 milliliters, and 1.8 liters--to Sec.  4.72 
as authorized standards of fill for wine. TTB is also proposing to add 
the 330, 620, and 700 milliliters and 2.25 liters sizes to Sec.  4.72 
as authorized standards of fill for wine. TTB is specifically 
interested in comments that address whether the proposed sizes would 
result in consumer confusion regarding the quantity of wine in the 
container.

Eliminating the Standards of Fill (Alternative 2)

    TTB also seeks comment on an alternative of eliminating the 
existing standards of fill for wine and distilled spirits, except to 
maintain in the regulations a minimum standard of 50 milliliters for 
both wine and distilled spirits and a maximum standard of fill of 3.785 
liters for distilled spirits. Conforming edits would also be required 
in 27 CFR parts 19, 26, and 27.
    TTB believes a minimum container size is needed to ensure 
sufficient space on the container for required labeling. TTB believes a 
maximum container size also is needed to maintain the distinction 
between bottled and bulk distilled spirits products. See also 27 U.S.C. 
206(c). However, TTB is considering eliminating the standards of fill 
within those limits for many of the same reasons it described in 
previous notices of proposed rulemaking, ``Elimination of Certain 
Standards of Fill for Wine'' (Notice No. 182, July 1, 2019, 84 FR 
31257) and ``Elimination of Certain Standards of Fill for Distilled 
Spirits; Amendment of Malt Beverage Net Contents Labeling Regulation'' 
(Notice No. 183, July 1, 2019, 84 FR 31264):
    1. Elimination of the existing standards of fill would address the 
recent petitions on this issue, would eliminate the need for industry 
members to petition for additional authorizations if marketplace 
conditions favor different standards in the future, and would eliminate 
requirements that restrict competition and the movement of goods in 
domestic and international commerce.
    2. It would address concerns that the current standards of fill 
unnecessarily limit manufacturing options and consumer purchasing 
options, particularly where consumers may seek smaller containers to 
target a specific amount of consumption.
    3. TTB believes that current labeling requirements regarding net 
contents (see 27 CFR 4.32(b)(2),4.37, 5.63(b)(3), and 5.70) and those 
regarding the design and fill of containers (see 27 CFR 4.71 and 5.202) 
may provide consumers with adequate information about container 
contents.
    4. Limiting standards of fill is no longer necessary to ensure 
accurate calculation of tax liabilities or to protect the revenue. TTB 
verifies tax liability on the basis of a producer's production and 
removal records, and TTB believes that allowing additional standards of 
fill would not undermine its efforts in this regard. TTB's predecessor 
agency, the Bureau of Alcohol, Tobacco and Firearms (ATF), and TTB 
previously took the position that limiting the number of bottle sizes 
protected the revenue by facilitating accurate tax computations. In 
Goldstein v. Miller, 488 F.Supp. 156, 171 (D. Md. 1980), aff'd 649 F.2d 
863 (4th Cir. 1981), the court reviewed that position and concluded 
that limiting standards of fill was reasonably related to the 
collection of the revenue, though it also noted that ATF had the 
discretionary power to withdraw or amend the requirements. The 
litigation arose shortly after the enactment of the all-in-bond system 
of tax payment for distilled spirits under the Distilled Spirits Tax 
Revision Act of 1979, Title VIII of Public Law 96-39, 96th Cong., 1st 
Sess. Under this system, the tax was calculated at the time of the 
removal of the bottled distilled spirits from the distilled spirits 
plant rather than at the early bulk stages before bottling. Due to the 
implementation of the system, ATF was especially concerned about 
maintaining standards of fill at that time, as a back-up to the then 
new all-in-bond system, whose efficacy was untested. The all-in-bond 
system has now been in place for over 40 years. Audit experience since 
implementation of the all-in-bond system and since the Goldstein 
litigation leads TTB to believe that the limitations on standards of 
fill are no

[[Page 31790]]

longer necessary for revenue protection purposes.
    In the subsequent final rule, T.D. TTB-165 (December 29, 2020, 85 
FR 85514), TTB authorized seven new standards of fill for wine, four 
new standards of fill for distilled spirits, and did not eliminate the 
standards of fill. Some commenters contended that eliminating the 
standards of fill would cause consumer confusion and potentially lead 
to a proliferation of differing State container size requirements that 
could cause further consumer confusion. Commenters also expressed 
concern about significant market disruption. Based on these comments, 
TTB declined at that time to eliminate all standards of fill but 
instead authorized additional specific sizes.
    However, in light of the several additional requests for yet more 
sizes in the short time since additional sizes were last adopted, as 
well as heightened concern that standards of fill can impose barriers 
to competition, TTB is again considering eliminating the standards of 
fill. Although TTB acknowledges that some commenters suggested there 
would be consumer confusion, TTB is not aware of consumer confusion 
related to container sizes of malt beverages, for which there is no 
standard of fill requirement. Moreover, with the addition of the eleven 
new standards of fill authorized with the final rules published in 
December 2020, and the potential of ten more new standards to address 
international agreements and petitions described in this document, the 
value of the defined standards may be of increasingly fleeting utility 
to consumers. Any potential for confusion may also be mitigated or 
eliminated by the net contents labeling that is mandatory. Moreover, 
concerns regarding confusion should be weighed against other concerns, 
including the possibility that container size requirements can be a 
barrier to innovation and competition. TTB again seeks comments on this 
matter generally, and also specifically with regard to whether the 
potential impact on competition of continuing to restrict standards of 
fill outweighs potential consumer confusion.

Statement of U.S. Equivalent Net Contents

    Under the TTB regulations, wine labels must bear a statement of net 
contents. The regulations at 27 CFR 4.37(b) provide that the mandatory 
net contents statement may include, in addition to the required metric 
measure, the equivalent volume in United States measure. If the U.S. 
measure is shown on the label, it must appear as stated in Sec.  
4.37(b) for each standard of fill authorized in Sec.  4.72.
    When TTB published T.D. TTB-165, it did not amend Sec.  4.37(b) to 
add the equivalent U.S. measures for the newly approved standards of 
fill of 355 milliliters, 250 milliliters, and 200 milliliters. TTB 
therefore plans to correct this oversight in this document by including 
in the proposed regulations the U.S. measures for each of the three new 
standards of fill. The U.S. measures will be shown as follows, in the 
format currently required by Sec.  4.37(b): 355 ml (12.0 fl. oz.); 250 
ml (8.5 fl. oz.); and 200 ml (6.8 fl. oz.).
    The proposed regulations also include the addition to Sec.  4.37(b) 
of U.S. equivalents for each standard of fill that is proposed in this 
document. For readability, the proposed regulatory text will list the 
sizes in a table format. The proposed sizes and their U.S. equivalents 
are as follows:
     2.25 liters (76.1 fl. oz.);
     1.8 liters (60.9 fl. oz.);
     720 milliliters (24.3 fl. oz.);
     700 milliliters (23.7 fl. oz.);
     620 milliliters (21.0 fl. oz.);
     550 milliliters (18.6 fl. oz.);
     360 milliliters (12.2 fl. oz.);
     330 milliliters (11.2 fl. oz.);
     300 milliliters (10.1 fl. oz.); and
     180 milliliters (6.1 fl. oz.).

Wine Container Fill Tolerances

    Section 5041(e) of the IRC authorizes the Secretary of the Treasury 
to prescribe by regulation tolerances for wine containers. TTB 
regulations at 27 CFR 24.255(b) require that wine proprietors fill 
bottles or other containers as nearly as possible to the amount shown 
on the container. TTB regulations at 27 CFR 24.255(c) require that 
``[t]he net contents of bottles or other containers of untaxpaid wine 
in the same tax class filled during six consecutive tax return periods 
. . . shall not vary by more than 0.5 percent from the net contents as 
stated on the bottles or other containers.'' TTB regulations at Sec.  
24.255(b) clarify that in no event may the amount of wine in any one 
specific container exceed the fill tolerances listed in the regulation 
based on the container's size. Note that 27 CFR part 4 contains further 
clarification on fill tolerance.
    When TTB published T.D. TTB-165, it did not amend Sec.  24.255(b) 
to add fill tolerances for the newly approved standards of fill of 355 
milliliters, 250 milliliters, and 200 milliliters. Additionally, when 
ATF published T.D. ATF-303 on October 23, 1990 (55 FR 42710), it did 
not amend Sec.  24.255(b) to add a fill tolerance for the newly 
approved standard of fill of 500 milliliters. TTB therefore plans to 
correct these oversights in this document by adding fill tolerances for 
these sizes to Sec.  24.255(b). Based on the existing tolerances, TTB 
is proposing the following tolerances for these sizes:
     2.5 percent for 500 milliliters;
     3 percent for 355 milliliters;
     4 percent for 250 milliliters; and
     4 percent for 200 milliliters.
    TTB is also proposing the addition of tolerances to Sec.  24.255(b) 
for most of the standards of fill that are proposed in this document. 
TTB does not need to add additional tolerances for the proposed sizes 
of 2.25 liters and 1.8 liters, as the current tolerance of 1.5 percent 
for containers that are 1.0 liter to 14.9 liters covers those sizes. 
For the remaining sizes proposed in this document, TTB is proposing the 
following tolerances:
     2 percent for 720 milliliters;
     2 percent for 700 milliliters;
     2 percent for 620 milliliters;
     2 percent for 550 milliliters;
     3 percent for 360 milliliters;
     3 percent for 330 milliliters;
     3 percent for 300 milliliters; and
     4.5 percent for 180 milliliters.
    For readability, the proposed regulatory text will include ranges 
of sizes, rather than listing most of the sizes individually, as the 
regulation currently does. The proposed regulatory text also includes 
some additional minor edits for readability.

Conforming Edits

    TTB is also proposing a number of conforming edits to parts 19, 26, 
and 27 of the TTB regulations (27 CFR parts 19, 26, and 27) to reflect 
the changes proposed in this rulemaking and the reorganization of parts 
5 and 7 (27 CFR parts 5 and 7) that went into effect pursuant to TTB's 
recent final rule, Modernization of the Labeling and Advertising 
Regulations for Distilled Spirits and Malt Beverages (T.D. TTB-176, 
February 9, 2022, 87 FR 7526). TTB also is making additional, 
nonsubstantive amendments to conform the regulations described in this 
document to the current regulatory authority citation requirements of 
the Office of the Federal Register.

Public Participation

Comments Sought

    TTB requests comments on the proposal to add some or all of the 
additional standards of fill for wine described in this document, and 
the alternative of eliminating all but a minimum standard of fill for 
wine. TTB also requests comments on the proposal

[[Page 31791]]

to eliminate all but a minimum and maximum standard of fill for 
distilled spirits. In particular, TTB requests comments on whether it 
should authorize the proposed sizes (or eliminate the standards of fill 
altogether) based on the considerations relevant to the FAA Act, such 
as whether the proposed sizes would result in consumer confusion. TTB 
also welcomes comments on the proposed container fill tolerances for 
wine. TTB further welcomes comments on the appropriate number of 
bottles per case to list in the table at 27 CFR 24.300(a)(1) for the 
proposed new container sizes, and the existing container sizes not 
currently listed there. Any person submitting comments may present such 
data, views, or arguments as he or she desires. Comments that provide 
the factual basis supporting the views or suggestions presented will be 
particularly helpful in developing a reasoned regulatory decision on 
this matter.

Submitting Comments

    You may submit comments on this proposal as an individual or on 
behalf of a business or other organization via the Regulations.gov 
website or via postal mail, as described in the ADDRESSES section of 
this document. Your comment must reference Notice No. 210 and must be 
submitted or postmarked by the closing date shown in the DATES section 
of this document. You may upload or include attachments with your 
comment. You also may submit a comment requesting a public hearing on 
this proposal. The TTB Administrator reserves the right to determine 
whether to hold a public hearing.

Confidentiality and Disclosure of Comments

    All submitted comments and attachments are part of the rulemaking 
record and are subject to public disclosure. Do not enclose any 
material in your comments that you consider confidential or that is 
inappropriate for disclosure.
    TTB will post, and you may view, copies of this document, selected 
supporting materials, and any comments TTB receives about this proposal 
within the related Regulations.gov docket. In general, TTB will post 
comments as submitted, and it will not redact any identifying or 
contact information from the body of a comment or attachment.
    Please contact TTB's Regulations and Rulings division by email 
using the web form available at https://www.ttb.gov/contact-rrd, or by 
telephone at 202-453-2265, if you have any questions regarding how to 
comment on this proposal or to request copies of this document, its 
supporting materials, or the comments received in response.

Regulatory Analysis and Notices

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. If adopted, the amendments would provide bottlers and 
importers of wine and distilled spirits with additional flexibility to 
use new bottle sizes if they so choose. The proposed regulation would 
impose no new reporting, recordkeeping, or other administrative 
requirement. Therefore, no regulatory flexibility analysis is required.

Paperwork Reduction Act

    The collection of information in this rule has been previously 
approved by the Office of Management and Budget (OMB) under the title 
``Labeling and Advertising Requirements Under the Federal Alcohol 
Administration Act,'' and assigned control number 1513-0087. This 
proposed regulation would not result in a substantive or material 
change in the previously approved collection action, since the nature 
of the mandatory information that must appear on labels affixed to the 
container remains unchanged.

Executive Order 12866

    It has been determined that this proposed rule is not a significant 
regulatory action as defined by Executive Order 12866 of September 30, 
1993. Therefore, no regulatory assessment is required.

Drafting Information

    Jennifer Berry of the Regulations and Rulings Division drafted this 
document.

List of Subjects

27 CFR Part 4

    Advertising, Consumer protection, Customs duties and inspection, 
Imports, Labeling, Packaging and containers.

27 CFR Part 5

    Advertising, Consumer protection, Customs duties and inspection, 
Imports, Labeling, Packaging and containers.

27 CFR Part 19

    Alcohol and alcoholic beverages, Alcohol fuel plants, Alternation, 
Application procedures, Distilled spirits plants, Permit requirements, 
Registration requirements, Reporting and recordkeeping requirements, 
Security requirements, Trade names, Vinegar plants.

27 CFR Part 24

    Administrative practice and procedure, Claims, Electronic funds 
transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavorings, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 26

    Alcohol and alcoholic beverages, Caribbean basin initiative, 
Claims, Customs duties and inspection, Electronic funds transfers, 
Excise taxes, Packaging and containers, Puerto Rico, Reporting and 
recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses.

27 CFR Part 27

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

Proposed Amendments to the Regulations

[Alternative 1]

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR parts 4 and 24 as follows:

PART 4--LABELING AND ADVERTISING OF WINE

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

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

0
2. In Sec.  4.37, revise paragraph (b)(1) to read as follows:


Sec.  4.37   Net contents.

* * * * *
    (b) * * *
    (1) For the metric standards of fill shown in the following table, 
the equivalent U.S. measures are:

                       Table 1 to Paragraph (b)(1)
------------------------------------------------------------------------
            Metric measure                  Equivalent U.S. measure
------------------------------------------------------------------------
3 liters (L).........................  101 fluid ounces (fl. oz.).
2.25 L...............................  76.1 fl. oz.
1.8 L................................  60.9 fl. oz.
1.5 L................................  50.7 fl. oz.
1 L..................................  33.8 fl. oz.
750 milliliters (mL).................  25.4 fl. oz.
720 mL...............................  24.3 fl. oz.

[[Page 31792]]

 
700 mL...............................  23.7 fl. oz.
620 mL...............................  21.0 fl. oz.
550 mL...............................  18.6 fl. oz.
500 mL...............................  16.9 fl. oz.
375 mL...............................  12.7 fl. oz.
360 mL...............................  12.2 fl. oz.
355 mL...............................  12.0 fl. oz.
330 mL...............................  11.2 fl. oz.
300 mL...............................  10.1 fl. oz.
250 mL...............................  8.5 fl. oz.
200 mL...............................  6.8 fl. oz.
187 mL...............................  6.3 fl. oz.
180 mL...............................  6.1 fl. oz.
100 mL...............................  3.4 fl. oz.
50 mL................................  1.7 fl. oz.
------------------------------------------------------------------------

* * * * *
0
3. In Sec.  4.72, revise paragraph (a) to read as follows:


Sec.  4.72   Metric standards of fill.

    (a) Authorized standards of fill. The standards of fill for wine 
are the following:

                        Table 1 to Paragraph (a)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
3 liters.............................  375 milliliters.
2.25 liters..........................  360 milliliters.
1.8 liters...........................  355 milliliters.
1.5 liters...........................  330 milliliters.
1 liter..............................  300 milliliters.
750 milliliters......................  250 milliliters.
720 milliliters......................  200 milliliters.
700 milliliters......................  187 milliliters.
620 milliliters......................  180 milliliters.
550 milliliters......................  100 milliliters.
500 milliliters......................  50 milliliters.
------------------------------------------------------------------------

* * * * *

PART 24--WINE

0
4. The authority citation for part 24 continues to read as follows:

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 
5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 
5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 
6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 
U.S.C. 9301, 9303, 9304, 9306.

0
5. In Sec.  24.255:
0
a. Revise paragraph (b); and
0
b. Remove the parenthetical authority citation at the end of the 
section.
    The revision reads as follows:


Sec.  24.255   Bottling or packing wine.

* * * * *
    (b) Bottle or other container fill. (1) Proprietors of bonded wine 
premises and taxpaid wine bottling house premises must fill bottles or 
other containers as nearly as possible to conform to the amount shown 
on the label or blown in the bottle or marked on any container other 
than a bottle. However, in no event may the amount of wine contained in 
any individual bottle, due to lack of bottle uniformity, vary from the 
amount stated more than plus or minus:
    (i) 1.0 percent for 15.0 liters and above;
    (ii) 1.5 percent for 14.9 liters to 1.0 liter;
    (iii) 2.0 percent for 750 mL to 550 mL;
    (iv) 2.5 percent for 500 mL;
    (v) 3.0 percent for 375 mL to 300 mL;
    (vi) 4 percent for 250 mL and 200 mL;
    (vii) 4.5 percent for 187 mL to 100 mL; and
    (viii) 9.0 percent for 50 mL.
    (2) In such case, there will be substantially as many bottles 
overfilled as there are bottles underfilled for each lot of wine 
bottled. Short-filled bottles or other containers of wine which are 
sold or otherwise disposed of by the proprietor to employees for 
personal consumption need not be labeled, but, if labeled, need not 
show an accurate statement of net contents.
* * * * *

[Alternative 2]

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR parts 5, 19, 26, and 27 as follows:

PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS

0
1. The authority citation for part 5 continues to read as follows:

    Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205 and 207.

0
2. In Sec.  5.203, revise paragraph (a) to read as follows:


Sec.  5.203   Standards of fill (container sizes).

    (a) Authorized standards of fill. Subject to the tolerances allowed 
under paragraph (b) of this section and the headspace prescribed in 
Sec.  5.202(b), distilled spirits containers, other than bulk, may not 
contain more than 3.785 liters or less than 50 milliliters.
* * * * *

PART 19--DISTILLED SPIRITS PLANTS

0
3. 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.


Sec.  19.116   [Amended]

0
4. In Sec.  19.116:
0
a. Amend paragraph (a)(2)(iii) by removing the text ``Sec. Sec.  5.28'' 
and adding, in its place, the text ``Sec. Sec.  5.194''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.132   [Amended]

0
5. In Sec.  19.132:
0
a. Amend paragraph (a)(2)(iii) by removing the text ``Sec. Sec.  5.28'' 
and adding, in its place, the text ``Sec. Sec.  5.194''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.314   [Amended]

0
6. In Sec.  19.314,
0
a. Amend the last sentence by removing the text ``Sec. Sec.  5.26 and 
5.27'' and adding, in its place, the text ``Sec. Sec.  5.192 and 
5.193''.; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.348   [Amended]

0
7. In Sec.  19.348:
0
a. Amend the introductory text by removing the text ``Sec. Sec.  5.26 
and 5.27'' and adding, in its place, the text ``Sec. Sec.  5.192 and 
5.193''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.511   [Amended]

0
8. In Sec.  19.511,
0
a. Amend the first sentence by removing the text ``subpart E'' and 
adding, in its place, the text ``subpart K''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.512   [Amended]

0
9. In Sec.  19.512,
0
a. Amend the first sentence by removing the text ``Sec.  5.46'' and 
adding, in its place, the text ``Sec.  5.202''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.517   [Amended]

0
10. In Sec.  19.517,
0
a. Amend paragraph (a) by removing the text ``Sec.  5.34'' and adding, 
in its place, the text ``Sec.  5.64'';
0
b. Amend paragraph (b) by removing the text ``Sec.  5.35'' and adding, 
in its place, the text ``Sec. Sec.  5.143 and 5.156'';
0
c. Amend paragraph (c) by removing the text ``Sec.  5.37(a)'' and 
adding, in its place, the text ``Sec.  5.65'';
0
d. Amend paragraph (d) by removing the text ``Sec.  5.36(d)'' and 
adding, in its place, the text ``Sec.  5.66(f)'';
0
e. Amend paragraphs (g) and (h) by removing the text ``Sec.  5.40'' 
wherever it

[[Page 31793]]

appears and adding, in its place, the text ``Sec.  5.74'';
0
f. Amend paragraph (j) by removing the text ``Sec.  5.39'' and adding, 
in its place, the text ``Sec.  5.72''; and
0
g. Remove the parenthetical authority citation at the end of the 
section.


Sec.  19.519   [Amended]

0
11. In Sec.  19.519,
0
a. Amend the second sentence of paragraph (d) by removing the text 
``Sec.  5.22'' and adding, in its place, the text ``subparts F and I of 
part 5''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.

PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN 
ISLANDS

0
12. The authority citation for part 26 continues to read as follows:

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 
5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232, 
5271, 5275, 5301, 5314, 5555, 6001, 6109, 6301, 6302, 6804, 7101, 
7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 
9304, 9306.


Sec.  26.40   [Amended]

0
13. In Sec.  26.40, amend paragraph (c) by removing the text ``Sec.  
5.47a,'' and adding, in its place, the text ``Sec.  5.203''.


Sec.  26.200   [Amended]

0
14. In Sec.  26.200:
0
a. Amend paragraph (d)(2) by:
0
i. Removing the text ``27 CFR 5.51'' and adding, in its text, the 
phrase ``27 CFR 5.24 and 5.25''; and
0
ii. Removing the text ``27 CFR 7.31'' and text, in its place, the 
phrase ``27 CFR 7.24 and 7.25''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  26.202   [Amended]

0
15. In Sec.  26.202:
0
a. Amend paragraph (c) by:
0
i. In the first sentence, removing the text ``27 CFR 5.51 in the case 
of distilled spirits, or 27 CFR 7.31'' and adding, in its place, the 
text ``27 CFR 5.24 and 5.25 in the case of distilled spirits, or 27 CFR 
7.24 and 7.25''; and
0
ii. In the second sentence, removing the text ``27 CFR 4.40, 5.51, and 
7.31'' and adding, in its place, the text ``27 CFR 4.40, 5.24, 5.25, 
7.24, and 7.25,'';
0
b. Amend paragraph (d) by removing the text ``27 CFR 5.52'' and adding, 
in its place, the text ``27 CFR 5.30''; and
0
c. Remove the parenthetical authority citation at the end of the 
section.


Sec.  26.206   [Amended]

0
16. In Sec.  26.206, amend paragraph (c) by removing the text ``Sec.  
5.47a,'' and adding, in its place, the text ``Sec.  5.203''.


Sec.  26.312   [Amended]

0
17. In Sec.  26.312,
0
a. Amend the first sentence by removing the text ``Sec.  5.47 or Sec.  
5.47a'' and adding, in its place, the text ``Sec.  5.203''; and
0
b. Amend the second sentence by removing the text ``subpart E'' and 
adding, in its place, the text ``subpart K''.

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

0
18. The authority citation for part 27 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, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 5201, 
5205, 5207, 5232, 5273, 5301, 5313, 5382, 5555, 6109, 6302, 7805.


Sec.  27.48   [Amended]

0
19. In Sec.  27.48,
0
a. Paragraph (a)(2)(ii) is amended by:
0
i. Removing the text ``27 CFR 5.51'' and adding, in its place, the text 
``27 CFR 5.24 and 5.25''; and
0
ii. Removing the text ``27 CFR 7.31'' and adding, in its place, the 
text ``27 CFR 7.24 and 7.25''; and
0
b. Remove the parenthetical authority citation at the end of the 
section.


Sec.  27.55   [Amended]

0
20. In Sec.  27.55,
0
a. Paragraph (c) is amended by:
0
i. In the first sentence, removing the text ``27 CFR 5.51 in the case 
of distilled spirits, or 27 CFR 7.31'' and adding, in its place, the 
text ``27 CFR 5.24 and 5.25 in the case of distilled spirits, or 27 CFR 
7.24 and 7.25''; and
0
ii. In the second sentence, removing the text ``27 CFR 4.40, 5.51, and 
7.31'' and adding, in its place, the text ``27 CFR 4.40, 5.24, 5.25, 
7.24, and 7.25'';
0
b. Amend paragraph (d) by removing the text ``27 CFR 5.52'' and adding, 
in its place, the text ``27 CFR 5.30''; and
0
c. Remove the parenthetical authority citation at the end of the 
section.


Sec.  27.202   [Amended]

0
21. In Sec.  27.202,
0
a. Amend the first sentence by removing the text ``Sec.  5.47a'' and 
adding, in its place, the text ``Sec.  5.203''; and
0
b. Amend the second sentence by removing the text ``subpart E'' and 
adding, in its place, the text ``subpart k''.

    Signed: April 28, 2022.
Mary G. Ryan,
Administrator.
    Approved: April 28, 2022.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and Tariff Policy.
[FR Doc. 2022-10589 Filed 5-24-22; 8:45 am]
BILLING CODE 4810-31-P