[Federal Register Volume 60, Number 2 (Wednesday, January 4, 1995)]
[Proposed Rules]
[Pages 411-416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-138]
[[Page 411]]
DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
7 CFR Parts 4, 5, and 7
[Notice No. 803; CRD-94-8]
RIN AB32
Alteration of Labels on Containers of Distilled Spirits, Wine,
and Beer
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: ATF is proposing to amend the regulations in 27 CFR Parts 4,
5, and 7 which implement section 205(e) of the Federal Alcohol
Administration Act of 1935, which makes it unlawful for any person to
alter, mutilate, destroy, obliterate, or remove any mark, brand or
label on wine, distilled spirits, or malt beverages held for sale in
interstate or foreign commerce or after shipment therein. The proposed
amendments will reinstate a requirement that ATF approval be obtained
before relabeling distilled spirits, and will make it unlawful to
relabel a distilled spirits, wine, or malt beverage container if the
effect of such action is to remove from the container or label any
information required by ATF regulations, or a product identification
code placed on the product by the producer for tracing purposes.
DATES: Written comments must be received on or before March 6, 1995.
ADDRESSES: Send written comments to: Chief, Distilled Spirits and
Tobacco Branch, Bureau of Alcohol, Tobacco Firearms, P.O. Box 50221,
Washington, DC 20091-0221. [Attn: Notice No. 803.]
FOR FURTHER INFORMATION CONTACT:
Daniel J. Hiland, Distilled Spirits and Tobacco Branch, Bureau of
Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW.,
Washington, DC 20226 (202-927-8210).
SUPPLEMENTARY INFORMATION:
Background
Several producers and importers of alcoholic beverages have
complained to the Bureau of Alcohol, Tobacco and Firearms (ATF) that
product identification code markings placed on containers and labels of
wines and distilled spirits by producers for tracing purposes are being
removed or mutilated after the product has left the producer's
premises. Such alterations of labels or packages have been permitted in
foreign trade zones and Customs bonded warehouses, because ATF
regulations do not specifically address such activities, and because
product identification codes are not mandatory information under our
regulations. However, the effect of such action is to make it
impossible for the producers to rely on production codes to trade
mislabeled, adulterated, or unsafe products.
Federal Alcohol Administration Act
Section 105(e) of the Federal Alcohol Administration Act (FAA Act),
27 U.S.C. Sec. 205(e), authorizes ATF to prescribe regulations relating
to the packaging, marking, branding, labeling, and size and fill of
container as will prohibit deception of the consumer with respect to
such products or the quantity thereof.
In order to prevent the sale or shipment or other introduction of
distilled spirits, wine, or malt beverages in interstate or foreign
commerce which are not bottled, packaged, or labeled in compliance with
the regulations, the FAA Act requires that prior to bottling distilled
spirits, wines, or malt beverages, the producer or bottler must obtain
a certificate of label approval covering the product. Similarly, the
law provides that no person shall remove bottled distilled spirits,
wines, or malt beverages from Customs custody for consumption in
bottles, for sale or any other commercial purposes, without having
first obtained a certificate of label approval covering the product.
Thus, the certificate of label approval requirement ensures that
mislabeled distilled spirits, wines, or malt beverages cannot be
introduced in interstate or foreign commerce. To ensure that products
with proper labels were not altered once such products had been removed
from bond, section 205(e) further provides as follows:
It shall be unlawful for any person to alter, mutilate, destroy,
obliterate, or remove any mark, brand, or label upon distilled
spirits, wine, or malt beverages held for sale in interstate or
foreign commerce or after shipment therein, except as authorized by
Federal law or except pursuant to regulations of the Secretary of
the Treasury authorizing relabeling for purposes of compliance with
the requirements of this subsection or of State law.
Regulations which implement these provisions of the FAA Act, as they
relate to wine, distilled spirits, and malt beverages, are set forth in
title 27, Code of Federal Regulations (CFR), Parts 4, 5, and 7,
respectively. These regulations provide for relabeling in certain
circumstances.
Sections 4.30 and 7.20 provide that someone wanting to relabel must
receive prior permission from the Regional Director (Compliance).
Section 5.31 does not currently require prior approval for the
relabeling of distilled spirits, as long as such relabeling is done in
accordance with an approved certificate of label approval.
The regulations provide that distilled spirits, wines and malt
beverages may be relabeled as authorized by Federal law. Such products
may also be relabeled for purposes of compliance with the requirements
of the regulations, or of State law. Finally, there may be added to
wine and distilled spirits bottles, after removal from Customs custody,
or prior to or after removal from bonded premises, without application
for permission to relabel, a label identifying the wholesale or retail
distributor thereof, and containing no reference whatever to the
characteristics of the product.
Customs Bonded Warehouses and Foreign Trade Zones
The statutory prohibition against the alteration or mutilation of
distilled spirits, wine, or malt beverage labels applies to all
products held for sale in interstate or foreign commerce. The terms of
the statute thus apply to nontaxpaid domestic and imported products
held for storage or manipulation in a Customs bonded warehouse or
foreign trade zone.
However, since domestic nontaxpaid alcoholic beverages bottled for
exportation are exempt from the certificate of label approval
requirement, and certificates of label approval are not required for
imported alcoholic beverages until they are withdrawn from Customs
custody for consumption in the United States, ATF has previously taken
the position that relabeling activities could occur in a Customs bonded
warehouse or foreign trade zone without prior ATF approval. ATF
regulations authorize the relabeling of alcoholic beverages in Customs
custody in order to bring such products in compliance with a
certificate of label approval prior to withdrawal for consumption.
However, current regulations do not specifically set forth the
limitations on other types of relabeling activities in Customs bonded
warehouses or foreign trade zones. In general, ATF saw no need to
scrutinize labeling activities involving such products unless and until
they were withdrawn from Customs custody for consumption in the United
States.
While ATF has not required that persons relabeling alcoholic
beverages in Customs bonded warehouses or foreign trade zones obtain
prior approval, such activities are subject to regulation by the United
States Customs Service (``Customs''). Because the [[Page 412]] current
regulations do not clarify the scope of the prohibition against
alteration of labels, there has been considerable confusion as to what
types of labeling activities are authorized in a Customs bonded
warehouse or foreign trade zone.
ATF has taken the position that there are restrictions as to the
removal of mandatory information from domestic nontaxpaid distilled
spirits, wines, and malt beverages. Pursuant to Parts 19, 24, and 25,
such products must be marked with certain mandatory information, which
is necessary to protect the revenue, and to ensure the tracing of the
product in the event of diversion. Thus, it has been ATF's policy that
such mandatory information may not be removed from products, regardless
of the fact that they are in a Customs bonded warehouse or foreign
trade zone awaiting exportation. However, this policy is not set forth
in the current regulations.
ATF is thus proposing to amend the regulations in parts 4, 5, and 7
to clarify that the prohibition against alteration or mutilation of
labels applies to products held in a foreign trade zone or customs
bonded warehouse. The proposed amendments will specify the type of
relabeling activities permissible for both domestic nontaxpaid
alcoholic beverages and imported alcoholic beverages stored in a
Customs bonded warehouse or foreign trade zone. Since current
regulations do not authorize removal of domestic nontaxpaid malt
beverages to Customs bonded warehouses pending exportation, the
relabeling of malt beverages in Customs bonded warehouses is not
discussed.
The proposed regulations will provide that relabeling of distilled
spirits, wines, and malt beverages in Customs bonded warehouses or
foreign trade zones can be accomplished without obtaining permission
from ATF, as long as such relabeling is done under the supervision of
Customs officials, in compliance with Customs requirements, and does
not involve the removal from the label or package of information made
mandatory by ATF regulations. The proposed language concerning the
supervision of Customs officials and compliance with Customs
requirements is not intended to impose any new requirements; instead,
this language merely recognizes current requirements under Customs
regulations. See, generally 19 C.F.R. 19.11 and 146.51.
Product Identification Codes
The complaints about the mutilation of product identification codes
in Customs bonded warehouses and foreign trade zones brought to the
surface an issue which ATF had previously been considering--whether lot
identification numbers or product identification codes should be made
mandatory information on consumer packages of alcoholic beverages. Such
codes are not currently required under the regulations. Instead, labels
on domestic distilled spirits, wines, and malt beverages are merely
required to list the name and address of the bottler. For imported
products, the name and address of the importer is required information
on the label.
Obviously, these requirements provide enough information so that if
a product is mislabeled, adulterated, or poses a health hazard, it is
possible to determine the source of the product. However, this does not
allow either ATF or the producer to trace a particular consumer package
back to a bottling line or production shift.
Current regulations in Parts 19, 24 and 25 promulgated pursuant to
the Internal Revenue Code require certain markings on cases of
distilled spirits, wines, and malt beverages. Cases of distilled
spirits and wines must be marked with serial numbers. These markings
are required in order to protect the revenue, and to facilitate tracing
in the event of the diversion of nontaxpaid goods. However, case
markings have limited value in tracing consumer packages such as
bottles and cans. Once the product is removed from the case, those
markings are obviously of no value in tracing the product.
The purpose of product identification codes (i.e., lot
identification numbers, bottling dates, freshness dates, etc.) on
labels or packages of products is to facilitate the tracing of a
product for safety, compliance or quality control issues. For example,
if an alcoholic beverage product is found to have been tampered with,
or contaminated, any type of code which would enable the tracing of the
product back to the bottling line or production batch would be
extremely valuable in determining how the tampering or contamination
occurred, and in allowing the producer to make an informed decision as
to the extent of the problem, and the need for product recalls.
For this reason, ATF believes that product identification codes are
useful as a consumer protection measure. Safety, labeling and quality
control problems often come to light by virtue of consumer complaints
or market place testing of products by ATF. In such instances, case
markings will generally be of no avail. However, the use of product
identification codes can help to readily identify the hazardous or
defective product, and, in the event that a health hazard exists,
assist in a speedier and more orderly recall of these products from the
marketplace.
The use of lot identification numbers has already been mandated by
the Council of the European Communities, in Council Directive 89/396/
EEC, dated June 14, 1989. In view of the fact that many European
countries now require such markings, and many large producers in the
United States voluntarily place such codes on product labels or
containers, ATF raised the issue of mandatory product identification
codes at an industry meeting held in Washington, D.C. on July 26, 1994.
The purpose of raising this issue with industry members was to
gather information on current industry practices regarding product
identification codes. ATF has learned that many domestic and foreign
producers of alcoholic beverages voluntarily place product
identification codes or lot identification numbers on the labels or
containers of wines, distilled spirits, and malt beverages. Typically,
the label or container of the product will be marked with a code
indicating the batch from which the product was made, a bottling date,
a production shift code, or some other type of mark which will enable
the producer to trace the consumer package to a specific production
batch or bottling line.
While large producers are more likely to have their own system of
product codes, small producers often find that such a system is
unnecessary, because their own records will enable them to do any
necessary tracing. At the industry meeting, questions were raised as to
whether it was necessary to impose a product identification code.
Rather than impose a mandatory product identification code
requirement on all producers, ATF is proposing to leave the decision as
to whether to place product identification codes on consumer packages
to the producer. At this time, we believe that the consumer is
adequately protected by the information required under the current
regulations. However, in order to allow producers to efficiently
develop a system in which they can ensure the tracing of their own
products, we believe that the voluntary placement of product
identification codes on consumer packages by producers should be
protected by regulation. This will address the specific problem
currently faced by producers--the removal of product identification
codes by distributors or other third parties.
If a producer believes that the only way it can efficiently trace
products is [[Page 413]] to put product identification codes on the
consumer packages, ATF does not believe it should allow the intent of
the producer to be frustrated by third parties. It is the producer who
will have to bear the costs of recalls if product identification codes
have been obliterated by distributors. It is the consumer who will
suffer if the obliteration of such marks makes it impossible to trace
problems with contaminated products. Finally, such actions make it more
difficult for ATF to trace problems with products already in the market
place.
Thus, ATF is proposing an amendment to the regulations which will
specifically prohibit the labeling or relabeling of products if the
effect of such action is to remove from labels or containers ``product
identification codes'' placed on the label or container by the producer
for tracing purposes. The term ``product identification code'' is
defined to include any numbers, letters, symbols, dates, or other codes
placed on the label or container by which the producer may be able to
trace a product back to a particular production lot or batch, bottling
line, or date of removal.
Under the proposed regulations, if it is necessary for anyone but
the producer to remove the original label from the product, the product
identification code must be put back on the new label. ATF believes
that this proposal will adequately address the problem before us,
without imposing an undue burden on any part of the industry. Most
importantly, it will ensure that an important consumer protection
mechanism voluntarily placed on consumer packages by manufacturers will
not be thwarted.
Although ATF is not proposing to require product identification
codes on labels or packages, it is the opinion of the Bureau that such
codes are useful, and should be encouraged. If at any time we find that
the lack of such codes is hampering the exercise of our consumer
protection function, we may wish to reconsider this option.
Products Bottled for Exportation
Although products which are bottled for exportation are not
required to be covered by certificates of label approval, ATF believes
that the prohibition on alteration of labels applies to such products.
The alteration or mutilation of required information on labels, as well
as product identification codes, would hamper ATF's efforts in tracing
the illegal diversion of nontaxpaid alcoholic beverages which were
intended for exportation. One of the purposes of the FAA Act was to aid
in the collection of taxes on distilled spirits, wines, and malt
beverages. Thus, we have authority under the FAA Act to extend these
provisions to products which are intended to be exported.
Prior Approval for Relabeling Distilled Spirits
The amendments to Part 5, relating to the labeling of distilled
spirits products, would also resolve a problem which was inadvertently
created by T.D. ATF-198, 50 FR 8456 (1985). In that amendment to the
regulations, the requirement that ATF give prior approval for the
relabeling of distilled spirits was removed, as long as the products
were relabeled in accordance with an approved label. This created an
unintended inconsistency with Parts 4 and 7, which do require prior
approval for the relabeling of wines and malt beverages, respectively.
The proposed amendment would reinstate in section 5.31 the
requirement that approval be obtained from ATF prior to relabeling
distilled spirits. ATF does not believe that this is a burdensome
requirement, in light of the statutory provision prohibiting any
relabeling unless done in accordance with regulations issued by the
Secretary. However, the proposed regulations will specify that such
permission need not be obtained for relabeling products in Customs
bonded warehouses or foreign trade zones, as long as such relabeling is
done under the supervision of Customs officers, in compliance with all
applicable Customs requirements, and the effect of the relabeling is
not to remove from the container or label any information which is
mandatory under ATF regulations, or any product identification code
placed on the container or label by the producer for tracing purposes.
Miscellaneous
ATF is also proposing to add to section 7.20 a provision which is
already found in slightly different forms in sections 4.30 and 5.31.
This provision authorizes, without prior approval from ATF, the
addition of a label identifying the wholesale or retail distributor, or
identifying the purchaser or consumer, as long as the label contains no
reference whatever to the characteristics of the product. The proposed
regulations will standardize this provision for wines, distilled
spirits, and malt beverages. Furthermore, the approval procedure in all
three sections is also standardized for the sake of consistency.
Although the current regulations in sections 4.30 and 7.20 do not
specifically condition approval for relabeling on the existence of a
certificate of label approval for the new labels, such a policy has
always been enforced by ATF. The proposed regulations will spell out
this requirement.
Executive Order 12866
It has been determined that this proposed regulation is not a
significant regulatory action as defined by Executive Order 12866.
Accordingly, this proposal is not subject to the analysis required by
this Executive Order.
Regulatory Flexibility Act
It is hereby certified that this regulation will not have a
significant impact on a substantial number of small entities. This
notice requests comments on a proposal to make it unlawful for any
person to alter, mutilate, destroy, obliterate, or remove any mark,
brand or label on wine, distilled spirits, or malt beverages held for
sale in interstate or foreign commerce or after shipment therein,
including products held in a foreign trade zone or Customs bonded
warehouse. if the effect of such action is to remove mandatory
information required by ATF regulations, or to remove a product
identification code placed on the label or container by the producer
for tracing purposes. The proposal would also reinstate a requirement
for prior approval for relabeling of distilled spirits products. This
proposal does not mandate new labeling requirements, but merely
protects and preserves mandatory information already required under the
regulations, and product identification codes which a producer
voluntarily chooses to put on the product. Thus, the proposal should
not have a significant economic impact on a substantial number of small
entities.
Accordingly, a regulatory flexibility analysis is not required
because the proposal, if promulgated as a final rule, is not expected:
(1) to have significant secondary or incidental effects on a
substantial number of small entities, or (2) to impose, or otherwise
cause, a significant increase in the reporting, recordkeeping, or other
compliance burdens on a substantial number of small entities.
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1980, 44
U.S.C. 3504(h).
Comments on the collection of information should be directed to the
[[Page 414]] Office of Management and Budget, Attention: Desk Officer
for the Department of the Treasury, Bureau of Alcohol, Tobacco and
Firearms, Office of Information and Regulatory Affairs, Washington, DC
20503, with copies to: Reports Management Officer, Information Programs
Branch, Room 3450, Bureau of Alcohol, Tobacco and Firearms, 650
Massachusetts Avenue, NW., Washington, DC 20226.
The collections of information in this regulation are in 27 CFR
4.30, 5.31, and 7.20. These sections require that persons who wish to
alter approved labels must apply for permission to ATF. This
information is required by the Bureau of Alcohol, Tobacco and Firearms
to ensure that alterations of labels are done in compliance with the
regulations. The likely respondents are businesses or other for-profit
institutions, including small businesses or organizations. This
information collected requirement is included in OMB Control Number
1512-0092, which covers the requirement to obtain prior approval from
ATF for all labels on distilled spirits, wines, and beer. This
requirement for prior approval of labels is mandated by statute (27
U.S.C. 205(e)).
The estimated total number of label approvals issued annually under
Control Number 1512-0092 is 54,601. Based on an estimated average time
of 30 minutes to complete the application for label approval, the total
annual burden associated with Control Number 1512-0092 is 27,300 hours.
We estimate that ATF receives about 180 applications for permission to
relabel distilled spirits, wines, and malt beverages every year.
The amendments proposed in this document will not change the
estimated number of 54,601 responses, because any person wanting to
relabel an alcoholic beverage product is already required to obtain a
certificate of label approval. The requirement for obtaining prior
approval from the regional director will not change the estimated
average time of 30 minutes to complete the application for a
certificate of label approval, because only about 180 of the 54,601
responses will involve relabeling. The additional time required for
those 180 responses is not significant enough to affect the estimated
average time of 30 minutes to complete the application for label
approval. Thus, the total burden estimated associated with Control
Number 1512-0092 is not affected by the amendments proposed in this
document.
Public Participation
ATF requests comments from all interested persons concerning the
amendments proposed by this notice. Comments received on or before the
closing date will be carefully considered. Comments received after that
date will be given the same consideration if it is practical to do so,
but assurance of consideration cannot be given except as to comments
received or or before the closing date. ATF will not recognize any
material in comments as confidential. Comments may be disclosed to the
public. Any material which the commenter considers to be confidential
or inappropriate for disclosure to the public should not be included in
the comment. The name of the person submitting the comment is not
exempt from disclosure.
Any interested person who desires an opportunity to comment orally
at a public hearing on the proposed amendments to the regulations
should submit his or her request, in writing, to the Director within
the 60-day comment period. The Director, however, reserves the right to
determine, in light of all circumstances, if a public hearing is
necessary.
Disclosure
Copies of this notice and the written comments will be available
for public inspection during normal business hours at: ATF Public
Reading Room, Room 6480, 650 Massachusetts Avenue, NW., Washington, DC
20226
Drafting Information
The principal author of this document is Daniel J. Hiland, Revenue
Programs Division, Bureau of Alcohol, Tobacco and Firearms.
List of Subjects
27 CFR Part 4
Advertising, Consumer Protection, Customs duties and inspection,
Imports, Labeling, Liquors, Packaging and Containers, Wine.
27 CFR Part 5
Advertising, Consumer Protection, Customs duties and inspection,
Imports, Liquors, Packaging and containers.
27 CFR Part 7
Advertising, Consumer Protection, Customs duties and inspection,
Imports, Labeling.
Issuance
Title 27, Chapter I, is proposed to be amended as follows:
PART 4--LABELING AND ADVERTISING OF WINE
Paragraph 1. The authority citation for 27 CFR Part 4 continues to
read as follows:
Authority: 27 U.S.C. 205.
Par. 2. Section 4.30(b) is revised, and new paragraphs (c) and (d)
are added to read as follows:
Sec. 4.30 General.
* * * * *
(b) Alteration of labels. (1) it shall be unlawful for any person
to alter, mutilate, destroy, obliterate, or remove any mark, brand, or
label upon wine held for sale in interstate or foreign commerce or
after shipment therein, including wine held in Customs bonded
warehouses or foreign trade zones, except as authorized by Federal law,
or as provided for in this section.
(2) Approval procedure. (i) The regional director (compliance) may,
upon written application, permit additional labeling or relabeling of
wine in containers for purposes of compliance with the requirements of
this subpart or of State law. Permission to relabel shall not be given
if the effect of the relabeling is to remove from the container or
label a product identification code placed on the container or label by
the producer for tracing purposes. For purposes of this section, the
term ``product identification code'' includes any numbers, letters,
symbols, dates, or other codes placed on the label or container by
which the producer may be able to trace a product back to a particular
production lot or batch, bottling line, or date of removal.
(ii) Application for permission to relabel shall be accompanied by
two complete sets of the old labels and two complete sets of any
proposed new labels, together with a statement of the reasons for
relabeling, the quantity and the location of the wine, and the name and
address of the person by whom the wine will be relabeled. In addition,
the person desiring to relabel the wine must provide evidence that the
proposed new labels are covered by a certificate of label approval, ATF
F 5100.31.
(3) Labels identifying wholesale or retail distributor. There may
be added to the container, after removal from customs custody, or prior
to or after removal from the premises where bottled or packed, without
application for permission to relabel, a label identifying the
wholesale or retail distributor thereof or identifying the purchaser or
consumer, and containing no references whatever to the characteristics
of the products. [[Page 415]]
(c) Customs bonded warehouses. (1) Domestic wines which have been
removed without payment of tax for transfer to a Customs bonded
warehouse pending exportation may be relabeled without permission from
ATF, as long as such relabeling is done under the supervision of
Customs officers, in compliance with all applicable Customs
requirements, and the effect of the relabeling is not to remove from
the container or label any markings which are required under Part 24 of
this chapter, or any product identification code placed on the
container or label by the producer for tracing purposes.
(2) Imported wines held in a Customs bonded warehouse may be
relabeled without permission from ATF, as long as such relabeling is
done under the supervision of Customs officers, in compliance with all
applicable Customs requirements, and the effect of the relabeling is
not to remove from the container or label any product identification
code placed on the container or label by the producer for tracing
purposes. As provided in Sec. 4.40, imported beverage wine in
containers shall not be released from Customs custody for consumption
without a certificate of label approval.
(d) Foreign trade zones. (1) Domestic wines which have been
withdrawn without payment of tax for deposit in a foreign trade zone
pending exportation may be relabeled without permission from ATF as
long as such relabeling is done under the supervision of Customs
officers, in compliance with all applicable Customs requirements, and
the effect of the relabeling is not to remove from the container or
label any markings required by Part 24 of this chapter, or any product
identification code placed on the container or label by the producer
for tracing purposes.
(2) Imported wines which have been entered into a foreign trade
zone may be relabeled without receiving prior permission from ATF, as
long as such relabeling is done under Customs supervision and in
compliance with Customs requirements, and the effect of such relabeling
is not to remove from the label or container any product identification
code placed on the label or container by the producer for tracing
purposes. As provided in Sec. 4.40, imported beverage wine in
containers shall not be released from Customs custody for consumption
without a certificate of label approval.
Par. 3. Section 4.80 is revised to read as follows:
Sec. 4.80 Exports.
With the exception of the regulations at Sec. 4.30(b), (c), and
(d), the regulations in this part shall not apply to wine exported in
bond.
PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS
Par. 4. The authority citation for 27 CFR Part 5 continues to read
as follows:
Authority. 26 U.S.C. 5301, 7805; 27 U.S.C. 205.
Par. 5. Section 5.1 is revised to read as follows:
Sec. 5.1 General.
The regulations in this part relate to the labeling and advertising
of distilled spirits. This part applies to the several States of the
United States, the District of Columbia, and the Commonwealth of Puerto
Rico. With the exception of the regulations at Sec. 5.31(b), (c), and
(d), the regulations in this part do not apply to distilled spirits for
export.
Par. 6. Section 5.31(b) is revised, and new paragraphs (c) and (d)
are added to read as follows:
Sec. 5.31 General.
* * * * *
(b) Alteration of labels. (1) It shall be unlawful for any person
to alter, mutilate, destroy, obliterate, or remove any mark, brand, or
label upon distilled spirits held for sale in interstate or foreign
commerce or after shipment therein, including distilled spirits held in
Customs bonded warehouses or foreign trade zones, except as authorized
by Federal law, or as provided in this section.
(2) Approval procedure. (i) The regional director (compliance) may,
upon written application, permit additional labeling or relabeling of
distilled spirits in containers for purposes of compliance with the
requirements of this subpart or of State law. Permission to relabel
shall not be given if the effect of the relabeling is to remove from
the container or label a product identification code placed on the
container or label by the producer for tracing purposes. For purposes
of this section, the term ``product identification code'' includes any
numbers, letters, symbols, dates, or other codes placed on the label or
container by which the producer may be able to trace a product back to
a particular production lot or batch, bottling line, or date of
removal.
(ii) Application for permission to reliable shall be accompanied by
two complete sets of the old labels and two complete sets of any
proposed new labels, together with a statement of the reasons for
relabeling, the quantity and the location of the distilled spirits, and
the name and address of the person by whom the distilled spirits will
be relabeled. In addition, the person desiring to relabel the distilled
spirits must provide evidence that the proposed new labels are covered
by a certificate of label approval, ATF F 5100.31.
(3) Labels identifying wholesale or retail distributor. There may
be added to the bottle, after removal from customs custody, or prior to
or after removal from bonded premises, without application for
permission to relabel, a label identifying the wholesale or retail
distributor thereof or identifying the purchaser or consumer, and
containing no references whatever to the characteristics of the
product.
(c) Customs bonded warehouses. (1) Domestic distilled spirits which
have been removed without payment of tax for transfer to a Customs
bonded warehouse pending exportation may be relabeled without
permission from ATF, as long as such relabeling is done under the
supervision of Customs officers, in compliance with all applicable
Customs requirements, and the effect of the relabeling is not to remove
from the container or label any markings which are required under Part
19 of this chapter, or any product identification code placed on the
container or label by the producer for tracing purposes.
(2) Imported distilled spirits held in a Customs bonded warehouse
may be relabeled without permission from ATF, as long as such
relabeling is done under the supervision of Customs officers, in
compliance with all applicable Customs requirements, and the effect of
the relabeling is not to remove from the container or label any product
identification code placed on the container or label by the producer
for tracing purposes. As provided in Sec. 5.51, bottled distilled
spirits shall not be released from Customs custody for consumption
without a certificate of label approval.
(d) Foreign trade zones. (1) Domestic distilled spirits which have
been withdrawn without payment of tax for deposit in a foreign trade
zone pending exportation may be relabeled without permission from ATF
as long as such relabeling is done under the supervision of Customs
officers, in compliance with all applicable Customs requirements, and
the effect of the relabeling is not to remove from the container or
label any markings required by Part 19 of this chapter, or any product
identification code placed on the container or label by the producer
for tracing purposes.
(2) Imported distilled spirits which have been entered into a
foreign trade zone may be relabeled without receiving prior permission
from ATF, as long as [[Page 416]] such relabeling is done under Customs
supervision and in compliance with Customs requirements, and the effect
of such relabeling is not to remove from the label or container any
product identification code placed on the label or container by the
producer for tracing purposes. As provided in Sec. 5.51, bottled
distilled spirits shall not be released from Customs custody for
consumption without a certificate of label approval.
PART 7--LABELING AND ADVERTISING OF MALT BEVERAGES
Par. 7. The authority citation for 27 CFR Part 7 continues to read
as follows:
Authority: 27 U.S.C. 205.
Par. 8. Section 7.20 is amended by revising paragraph (c), and
adding new paragraph (d) and (e) to read as follows:
Sec. 7.20 General.
* * * * *
(c) Alteration of labels. (1) It shall be unlawful for any person
to alter, mutilate, destroy, obliterate, or remove any mark, brand, or
label upon malt beverages held for sale in interstate or foreign
commerce or after shipment therein, including malt beverages held in
Customs bonded warehouses or foreign trade zones, except as authorized
by Federal law, or as provided in this section.
(2) Approval procedure. (i) The regional director (compliance) may,
upon written application, permit additional labeling or relabeling of
malt beverages in containers for purposes of compliance with the
requirements of this subpart or of State law. Permission to relabel
shall not be given if the effect of the relabeling is to remove from
the container or label a product identification code placed on the
container or label by the producer for tracing purposes. For purposes
of this section, the term ``product identification code'' includes any
numbers, letters, symbols, dates, or other codes placed on the label or
container by which the producer may be able to trace a product back to
a particular production lot or batch, bottling line, or date of
removal.
(ii) Application for permission to relabel shall be accompanied by
two complete sets of the old labels and two complete sets of any
proposed new labels, together with a statement of the reasons for
relabeling, the quantity and the location of the malt beverages, and
the name and address of the person by whom they will be relabeled. In
addition, the person desiring to relabel the malt beverages must
provide evidence that the proposed new labels are covered by a
certificate of label approval, ATF F 5100.31.
(3) Labels identifying wholesale or retail distributor. There may
be added to the bottle, after removal from customs custody, or prior to
or after removal from bonded premises, without application for
permission to relabel, a label identifying the wholesale or retail
distributor thereof or identifying the purchaser or consumer, and
containing no references whatever to the characteristics of the
product.
(d) Customs bonded warehouses. Imported malt beverages held in a
Customs bonded warehouse may be relabeled without permission from ATF,
as long as such relabeling is done under the supervision of Customs
officers, in compliance with all applicable Customs requirements, and
the effect of the relabeling is not to remove from the container or
label any product identification code placed on the container or label
by the producer for tracing purposes. As provided in Sec. 7.31, no
imported malt beverages in containers shall be released from Customs
custody for consumption without a certificate of label approval.
(e) Foreign trade zones. (1) Domestic malt beverages which have
been withdrawn without payment of tax for deposit in a foreign trade
zone pending exportation may be relabeled without permission from ATF
as long as such relabeling is done under the supervision of Customs
officers, in compliance with all applicable Customs requirements, and
the effect of the relabeling is not to remove from the container or
label any markings required by Part 25 of this chapter or any product
identification code placed on the container or label by the producer
for tracing purposes.
(2) Imported malt beverages which have been entered into a foreign
trade zone may be relabeled without receiving prior permission from
ATF, as long as such relabeling is done under Customs supervision and
in compliance with Customs requirements, and the effect of such
relabeling is not to remove from the label or container any product
identification code placed on the label or container by the producer
for tracing purposes. As provided in Sec. 7.31, no imported malt
beverages in containers shall be released from Customs custody for
consumption without a certificate of label approval.
Par. 9. Section 7.60 is revised to read as follows:
Sec. 7.60 Exports.
With the exception of the regulations at Sec. 7.20(c), (d) and (e),
the regulations in this part shall not apply to malt beverages exported
in bond.
Dated: September 9, 1994.
John W. Magaw,
Director.
Approved: September 28, 1994.
John P. Simpson,
Deputy Assistant Secretary, (Enforcement).
[FR Doc. 95-138 Filed 1-3-95; 8:45 am]
BILLING CODE 4810-31-M
