[Federal Register Volume 64, Number 179 (Thursday, September 16, 1999)]
[Rules and Regulations]
[Pages 50252-50253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24158]
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DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Parts 4 and 24
[T.D. ATF-403]
RIN 1512-AB78
Implementation of Public Law 105-34, Section 1417, Related to the
Use of Additional Ameliorating Material in Certain Wines
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Temporary rule (Treasury decision).
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SUMMARY: This temporary rule implements one of the provisions of the
Taxpayer Relief Act of l997. In accordance with the new law, the wine
regulations are amended to extend the amelioration and sweetening
limitations so that wines made exclusively from any fruit (excluding
grapes) or berry with a fixed acid content of 20 or more parts per
thousand are entitled to a volume of up to 60 percent ameliorating
material. In the Proposed Rules section of this Federal Register, ATF
is also issuing a notice of proposed rulemaking inviting comments on
this temporary rule for a 90-day period following the publication of
this temporary rule.
DATES: The temporary regulations are retroactive to April 1, 1998.
ADDRESSES: Send written comments to: Chief, Regulations Division,
Bureau of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC
20091-0221.
FOR FURTHER INFORMATION CONTACT: Thomas B. Busey, Regulations Division,
650 Massachusetts Avenue, NW., Washington, DC 20226 (202) 927-8204.
SUPPLEMENTARY INFORMATION:
Background
This temporary rule implements one of the provisions of the
Taxpayer Relief Act of 1997, Public Law 105-34 (``the Act''). Section
1417 of the Act amended Section 5384(b)(2)(D) of the Internal Revenue
Code of 1986 by striking ``loganberries, currants, or gooseberries,''
and inserting ``any fruit or berry with a natural fixed acid of 20
parts per thousand or more (before any correction to such fruit or
berry).''
Current Regulation for Amelioration of Fruit and Berries
Before enactment of the Act, the amelioration and sweetening
limitations of 26 U.S.C. 5384(b)(2)(D) could only be used for wines
produced exclusively from loganberries, currants, or gooseberries. For
wine produced exclusively from loganberries, currants, or gooseberries,
the volume of ameliorating material added to juice or wine may not have
exceeded 60 percent of the total volume of ameliorated juice or wine
(calculated exclusive of pulp). If the starting fixed acid level was or
exceeded 12.5 grams per liter, a maximum of 1,500 gallons of
ameliorating material may have been added to each 1,000 gallons of wine
or juice.
Section 1417 of Public Law 105-34 now extends the amelioration and
sweetening limitations so that wines made from any fruit or berry with
a natural fixed acid of 20 parts per thousand or more (before any
correction of such fruit or berry) is entitled to a volume of up to 60
percent ameliorating material. These provisions do not apply to grape
wine, only to fruit or berry wine.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for this
temporary rule, the provisions of the Regulatory Flexibility Act (5 USC
601) do not apply. Pursuant to 26 U.S.C. 7805(f), this temporary
regulation will be submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on its impact on small
business.
Executive Order 12866
It has been determined that this temporary rule is not a
significant regulatory action as defined by Executive Order 12866.
Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3507) and its implementing regulations, 5 CFR part 1320, do not apply
to this temporary rule because no new collection of information is
contained in this regulation.
Administrative Procedure Act
It has been determined that 5 USC 553 (b)(A) applies to this
temporary rule. Moreover, because this document merely implements a
section of the law which was effective April 1, 1998, and because
immediate guidance is necessary to implement the provisions of the law,
it is found to be impracticable to issue this Treasury decision with
notice and public procedure under 5 U.S.C. 553(b), or subject to the
effective date limitation in section 553(d).
Drafting Information
The principal author of this document is Thomas B. Busey,
Regulations Division, Bureau of Alcohol, Tobacco and Firearms.
List of Subjects
27 CFR Part 4
Advertising, Consumer protection, Customs duties and inspection,
Imports, Labeling, Packaging and containers, Wine.
27 CFR Part 24
Administrative practice and procedure, Authority delegations,
Claims, Electronic fund transfers, Excise taxes, Exports, Food
additives, Fruit juices, Labeling, Liquors, Packaging and containers,
Reporting and recordkeeping requirements, Research, Scientific
equipment, Spices and flavoring, Surety bonds, Taxpaid wine bottling
house, Transportation, Vinegar, Warehouses, Wine.
Authority and Issuance:
Accordingly, Chapter I of title 27, Code of Federal Regulations is
amended as follows:
PART 4--LABELING AND ADVERTISING OF WINE
Par. 1. The authority citation for 27 CFR part 4 continues to read
as follows:
Authority: 27 U.S.C. 205, unless otherwise noted.
Par. 2. Section 4.21 is amended by revising the proviso in
paragraph (e)(1)(i) to read as follows:
Sec. 4.21 The standards of identity.
* * * * *
(e) * * *
(1)(i) * * * Provided, That a domestic product may be ameliorated
or sweetened in accordance with the provisions of 26 U.S.C. 5384 and
any product other than domestic may be ameliorated before, during, or
after fermentation by adding, separately or in combination, dry sugar,
or such an amount of dry sugar and water solution as will increase the
volume of resulting product, in the case of wines produced from any
fruit or berry other than grapes, having a normal acidity of 20 parts
or more per thousand, not more than 60 percent, but in no event shall
[[Page 50253]]
any product so ameliorated have an alcoholic content, derived by
fermentation, of more than 13 percent by volume, or a natural acid
content, if water has been added, of less than 5 parts per thousand, or
a total solids content of more than 22 grams per 100 cubic centimeters.
* * * * *
Par. 3. Section 4.22 is amended by revising the proviso in
paragraph (b)(5) to read as follows:
Sec. 4.22 Blends, cellar treatment, alteration of class or type.
* * * * *
(b) * * *
(5) * * * Provided, That the class or type thereof shall not be
deemed to be altered:
(i) Where such wine (other than grape wine) is derived from fruit,
or other agricultural products, having a high normal acidity, if the
total solids content is not more than 22 grams per 100 cubic
centimeters, and the content of natural acid is not less than 7.5 parts
per thousand and
(ii) Where such wine is derived exclusively from fruit, or other
agricultural products, the normal acidity of which is 20 parts or more
per thousand, if the volume of the resulting product has been increased
not more than 60 percent by the addition of sugar and water solution,
for the sole purpose of correcting natural deficiencies due to such
acidity, and (except in the case of such wine when produced from fruit
or berries other than grapes) there is stated as part of the class and
type designation the phrase ``Made with over 35 percent sugar
solution''.
* * * * *
PART 24--WINE
Par. 1. The authority citation for 27 CFR 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, 5081, 5111-5113, 5121, 5122, 5142, 5143, 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, 7011, 7302, 7342,
7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306.
Par. 2. Section 24.178 is amended by revising paragraph (b) (3) and
(b) (4) to read as follows:
Sec. 24.178 Amelioration.
* * * * *
(b) * * *
(3) For all wine, except for wine described in (b) (4), the volume
of ameliorating material added to juice or wine may not exceed 35
percent of the total volume of ameliorated juice or wine (calculated
exclusive of pulp). Where the starting fixed acid level is or exceeds
7.69 grams per liter, a maximum of 538.4 gallons of ameliorating
material may be added to each 1,000 gallons of wine or juice.
(4) For wine produced from any fruit (excluding grapes) or berry
with a natural fixed acid of 20 parts per thousand or more (before any
correction of such fruit or berry), the volume of ameliorating material
added to juice or wine may not exceed 60 percent of the total volume of
ameliorated juice (calculated exclusive of pulp). If the starting fixed
acid level is or exceeds 12.5 grams per liter, a maximum of 1,500
gallons of ameliorating material may be added to each 1,000 gallons of
wine or juice. (26 U.S.C. 5383, 5384).
* * * * *
Signed: July 22, 1999.
John W. Magaw,
Director.
Approved: August 13, 1999.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 99-24158 Filed 9-15-99; 8:45 am]
BILLING CODE 4810-31-P
