97-5734. White Chocolate; Proposal to Establish a Standard of Identity  

  • [Federal Register Volume 62, Number 46 (Monday, March 10, 1997)]
    [Proposed Rules]
    [Pages 10781-10786]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-5734]
    
    
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    DEPARTMENT OF HEALTH AND HUMAN SERVICES
    
    Food and Drug Administration
    
    21 CFR Part 163
    
    [Docket Nos. 86P-0297 and 93P-0091]
    
    
    White Chocolate; Proposal to Establish a Standard of Identity
    
    AGENCY: Food and Drug Administration, HHS.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Food and Drug Administration (FDA) is proposing to 
    establish a standard of identity for white chocolate. The proposed 
    standard will provide for the use of the term ``white chocolate'' as 
    the common or usual name of products made from cacao fat, milk solids, 
    nutritive carbohydrate sweeteners, and other safe and suitable 
    ingredients, but containing no nonfat cacao solids. This action 
    responds principally to citizen petitions submitted separately by the 
    Hershey Foods Corp. (Hershey) and by the Chocolate Manufacturers 
    Association of the United States of America (CMA). FDA tentatively 
    concludes that this action will promote honesty and fair dealing in the 
    interest of consumers and, to the extent practicable, will achieve 
    consistency with existing international standards of identity for white 
    chocolate.
    DATES: Written comments by May 27, 1997. The agency proposes that any 
    final rule that may be issued based upon this proposal become effective 
    January 1, 1998.
    
    ADDRESSES: Submit written comments to the Dockets Management Branch 
    (HFA-305), Food and Drug Administration, 12420 Parklawn Dr., rm. 1-23, 
    Rockville, MD 20857.
    
    FOR FURTHER INFORMATION CONTACT: Geraldine A. June, Center for Food 
    Safety and Applied Nutrition (HFS-158), Food and Drug Administration, 
    200 C St. SW., Washington, DC 20204, 202-205-5099.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        In the Federal Register of June 5, 1992 (57 FR 23989), FDA 
    published a
    
    [[Page 10782]]
    
    tentative final rule (hereinafter referred to as the 1992 tentative 
    final rule) to amend the standards of identity for cacao products in 
    part 163 (21 CFR part 163). In section II.B. of the 1992 tentative 
    final rule, FDA noted that it had received a comment that requested 
    that the agency adopt a standard of identity for white chocolate. In 
    support of that request, the comment argued that the absence of a 
    standard of identity for this food had limited the introduction of 
    ``white chocolate'' products into the market. The comment also noted 
    the likelihood that consumer confusion would develop about the content 
    of products informally referred to as ``white chocolate'' that may or 
    may not contain any cacao-derived ingredients.
        The comment observed that, in the absence of a standard of identity 
    for this product, the term ``white chocolate'' would be prohibited 
    under the existing standards of identity in part 163. Further, the 
    comment stated that when such products have been introduced, firms have 
    been forced to use alternative names to avoid the labeling constraints 
    in the standards of identity.
        In response to the comment, FDA recognized the dilemma faced by 
    U.S. manufacturers of those confections that may be labeled ``white 
    chocolate'' in other countries but stated that the adoption of a 
    standard of identity for white chocolate was outside the scope of that 
    rulemaking. The agency suggested that the manufacturer petition the 
    agency to adopt a standard for this food. FDA pointed out that, in 
    fact, in the Federal Register of September 16, 1991 (56 FR 46798), the 
    agency had granted Hershey a temporary marketing permit (TMP) to test 
    market a product called ``white chocolate.'' The permit provided for 
    the temporary market testing of 23,608 kilograms (kg) (52,000 pounds 
    (lb)) of the product for a period of 15 months.
        Since publication of the 1992 tentative final rule, the agency has 
    received several applications from chocolate manufacturers for TMP's 
    for ``white chocolate.'' In the Federal Register of November 5, 1993 
    (58 FR 59050), the agency granted Hershey a new TMP for test products 
    designated as ``white chocolate.'' The purpose of the new permit was to 
    permit Hershey to collect data on consumer acceptance of the product 
    over a wider area of distribution. Hershey said that it intended to use 
    these data to support its citizen petition (filed December 15, 1992, 
    Docket No. 86P-0297/CP2) (hereinafter referred to as the 1992 Hershey 
    petition) for a standard of identity for white chocolate. In the 
    November 5, 1993 notice, the agency announced that it had received a 
    citizen petition from CMA (filed March 2, 1993, Docket No. 93P-0091) 
    (hereinafter referred to as the 1993 CMA petition) that also requested 
    that FDA establish a standard of identity for white chocolate.
        In addition to Hershey, the agency has granted TMP's to Ganong 
    Bros., Ltd., St. Stephen NB, Canada E3L 2X5 (58 FR 59050, November 5, 
    1993), the Pillsbury Co. (59 FR 32443, June 23, 1994), and Kraft 
    General Foods, Inc. (59 FR 33976, July 1, 1994).
        In the Federal Register of December 29, 1994 (59 FR 67302), FDA 
    published a notice extending Hershey's TMP (Docket No. 93P-0310) and 
    inviting interested persons to participate in the extended market test 
    under the same conditions that applied under that TMP. Since January 
    1995, FDA has issued letters to The Proctor and Gamble Co., Brach and 
    Brock (formerly E. J. Brach Corp.), Mauna Loa Macadamia Nut Corp., 
    Nestle Food Co., Kraft General Foods, MacFarms of Hawaii, Van Leer 
    Chocolate Corp., and Wilbur Chocolate Co. acknowledging the firms' 
    acceptance of the agency's invitation to participate in the extended 
    market test of products identified as being or containing white 
    chocolate. The aggregate effect of these TMP's is that up to 75 million 
    kg (166 million lb) per annum of product consisting, in large part, of 
    white chocolate has been, or will be, market tested. The majority of 
    the firms are conducting nationwide market tests. The agency is 
    currently evaluating requests from other firms to participate in the 
    extended market test.
    
    II. Petitions and Grounds
    
    A. The 1992 Hershey Petition
    
        Hershey, in its 1992 petition requesting that FDA establish a 
    standard of identity for white chocolate, described the product named 
    ``white chocolate'' as a food that deviates from the standardized cacao 
    products in part 163 in that: (1) It is prepared without the nonfat 
    components of the ground cacao nibs but contains the fat (cocoa butter) 
    expressed from the ground cacao nibs; and (2) it may contain safe and 
    suitable antioxidants. The petition further described ``white 
    chocolate'' as the solid or semiplastic food prepared by mixing and 
    grinding cocoa butter with one or more nutritive sweeteners and one or 
    more of the optional dairy ingredients provided in part 163. It 
    contains not less than 20 percent cocoa butter, not less than 14 
    percent of total milk solids, not less than 3.5 percent milkfat, and 
    not more than 55 percent nutritive carbohydrate sweeteners. It may 
    contain emulsifying agents, spices, natural and artificial flavorings 
    and other seasonings, and antioxidants approved for food use. It 
    contains no coloring material.
        In support of its request, Hershey contended that, because there is 
    currently no standard of identity for white chocolate, virtually all 
    uses of the term ``white chocolate'' would be prohibited by the 
    existing standards of identity for chocolate because they prescribe the 
    presence of chocolate liquor (ground cacao nibs). Hershey argued that 
    this requirement has acted as a practical deterrent to companies that 
    have considered developing and marketing white chocolate products in 
    the United States. The Hershey petition noted that when such products 
    have been introduced and marketed in the United States, manufacturers 
    have had to resort to labeling such products with descriptive terms 
    other than ``white chocolate'' (e.g., ``white confection'') to avoid 
    standardized food labeling issues. Hershey contended that, in many 
    cases, the use of such alternative terminology has obscured the true 
    nature of the product and could potentially mislead consumers. 
    Therefore, Hershey maintained that the absence of a standard of 
    identity for white chocolate, and the resulting uncertainty over 
    nomenclature on labeling, have proven to be factors limiting the 
    introduction of new products to meet consumer demand.
        In further support of its petition, Hershey maintained that there 
    exists a good likelihood of consumer confusion with regard to the 
    content of products that are referred to informally as ``white 
    chocolate'' but that may or may not contain any cacao-derived 
    ingredients. According to Hershey, consumers expecting to purchase a 
    white chocolate product may, in fact, be purchasing a vegetable fat 
    coating-type product made from fats other than cacao fat, which may 
    contain little or no cacao ingredients.
        The Hershey petition also included a summary of the results of a 
    consumer survey conducted in 1990 to determine the most common name 
    used by adult candy consumers when shown a variety of confection 
    products, including a white confection bar. The survey was conducted by 
    personal interviews with 216 adults who eat candy regularly. After an 
    introductory statement on how people use different names for the same 
    product, respondents were shown a product and asked what they would 
    call it. The procedure was repeated for two or more products--jelly 
    beans, lollipops, and a white confection bar. Over 61 percent of the 
    respondents used the term ``white chocolate'' to describe
    
    [[Page 10783]]
    
    the white confection bar that they were shown. An additional 10 percent 
    of the respondents associated the bar product to chocolate. Hershey 
    contended that, based on these results, it appears that the majority of 
    candy consumers tend to identify the white confection as either ``white 
    chocolate'' specifically or as some variety of chocolate.
        Hershey pointed out that many countries that have adopted standards 
    for cacao products have also recognized and established a standard of 
    identity for white chocolate. Hershey argued that, in countries that 
    have established a standard of identity for white chocolate, in 
    contrast to the United States, consumers are able to evaluate the 
    quality and value of the white chocolate products they purchase without 
    having to resort to an analysis of the product ingredient declaration.
        Hershey maintained that establishing a U.S. standard of identity 
    for white chocolate would promote honesty and fair dealing in the 
    interest of consumers and build consumer confidence in the food supply 
    by establishing minimal criteria for a class of products that is 
    becoming popular with consumers. According to Hershey, adoption of the 
    suggested standard of identity for white chocolate will also enhance 
    the ability of American manufacturers to compete in world markets. 
    Hershey maintained that a U.S. standard will result in greater 
    consistency in the international regulation of cacao products, while 
    ensuring that domestic consumers are buying and consuming ``the real 
    thing.''
    
    B. The 1993 CMA Petition
    
        In all substantive respects, the 1993 CMA petition agrees with the 
    1992 Hershey petition. In support of its request for a white chocolate 
    standard, CMA noted that the standards of identity for cacao products 
    permit only those products that contain a minimum level of chocolate 
    liquor to be identified as chocolate. CMA maintained that, because 
    there exists a product that consumers identify as ``white chocolate,'' 
    it is essential that the industry define this product, and that FDA 
    establish and enforce a standard of identity for white chocolate 
    products to avoid economic deception and promote honesty and fair 
    dealing in the interest of consumers.
        Like Hershey, CMA contended that consumers are being presented with 
    products that often contain low levels of cocoa butter (if any at all) 
    and relatively high levels of noncacao vegetable fats which, except for 
    coatings made with vegetable fats, are not permitted in standardized 
    chocolate products. CMA further stated that products that identify 
    themselves as ``white chocolate,'' but that do not meet CMA's suggested 
    standard, represent a true deception of the consumer. According to CMA, 
    consumer deception distorts individual purchasing decisions and 
    prevents consumers from satisfying their product preferences. CMA 
    asserted that FDA can reduce or prevent the continuation of such 
    deception by establishing a standard of identity for white chocolate.
        CMA further maintained that the absence of a standard of identity 
    for white chocolate denies consumers the benefit of knowing that a 
    white chocolate-type product that they purchase is, indeed, a true 
    cacao product. In the absence of such a standard, the U.S. chocolate 
    industry is unable to provide consumers with an identifiable white 
    chocolate product that meets both their expectations and the industry's 
    definition of quality.
        CMA stated that the adoption of their suggested standard would have 
    a positive effect on the marketability of, and competition among, 
    chocolate products. CMA also acknowledged the submission to FDA of a 
    similar petition by Hershey and noted that CMA's suggested white 
    chocolate standard of identity is generally consistent with that in the 
    Hershey petition. CMA further noted that while its suggested standard 
    is generally based on FDA standards of identity for cacao products, the 
    specific minimum levels of cacao fat, milkfat, and total milk solids 
    are based on those found in the European Union (EU) white chocolate 
    standard published in the Official Journal of European Communities.
        CMA explained that although antioxidants are not permitted in cacao 
    products under the current standards of identity for these foods, they 
    are needed in the proposed white chocolate standard. CMA maintained 
    that in making white chocolate, cocoa butter is typically deodorized to 
    achieve the desired flavor. In the process, the natural antioxidants 
    are removed. Therefore, CMA contended, the addition of antioxidants to 
    white chocolate is necessary to preserve the product flavor.
        CMA suggested that because Canada is proposing a standard for white 
    chocolate that is also based on the EU standard, adoption of its 
    proposed standard would increase harmonization of U.S. requirements 
    with those of Canada. Such harmonization, CMA maintained, is consistent 
    with the goals of the North American Free Trade Agreement.
    
    III. The Proposal
    
        Both petitioners agree that a standard of identity for white 
    chocolate would promote honesty and fair dealing in the interests of 
    consumers, eliminate a deterrent to firms introducing new products, 
    enhance international marketability of the product, and be consistent 
    with the white chocolate standard of the EU and that proposed by 
    Canada.
        The agency finds merit in the petitioners' request and tentatively 
    concludes that creating a standard of identity for white chocolate 
    would promote honesty and fair dealing in the interests of consumers 
    because the standard would eliminate the potential for economic fraud 
    and consumer deception through the substitution of cheaper ingredients 
    for cacao-derived ingredients.
        Establishing a standard of identity for white chocolate will 
    alleviate the need for companies to request TMP's to market products 
    bearing the name ``white chocolate'' that deviate from the standards of 
    identity for other chocolate products or, in lieu of requesting a TMP, 
    crafting identity statements using descriptive names other than 
    ``chocolate.'' A standard also will enhance international marketability 
    of the product and increase harmonization with the EU and Canada.
        While the agency tentatively agrees with the petitioners that a 
    standard for white chocolate should be established, it notes that it is 
    reviewing its existing standards of identity in response to the 
    Administration's Regulatory Reinvention Initiative that seeks to 
    streamline Government to ease the burden on regulated industry and 
    consumers. In the Federal Register of December 29, 1995 (60 FR 67492), 
    FDA published an advance notice of proposed rulemaking (ANPRM) in which 
    it requested comments on whether food standards of identity should be 
    retained, revised, or revoked. In the ANPRM, the agency specifically 
    asked for comments on whether, if it institutes a broad rulemaking on 
    reinventing food standards, it is appropriate in the interim to have a 
    moratorium on food standard actions, i.e., on the issuance of TMP's and 
    on the development of new or revised food standard regulations. Several 
    comments submitted by industry to the ANPRM opposed a moratorium on the 
    creation of new standards of identity while the agency is reviewing 
    existing food standards in response to the Regulatory Reinvention 
    Initiative. The comments asserted that a moratorium would disadvantage 
    firms by delaying the introduction of new products and would not be in 
    the consumer's best interest.
    
    [[Page 10784]]
    
        Although FDA is reviewing existing food standards in response to 
    the Regulatory Reinvention Initiative, the agency tentatively concludes 
    that there are compelling reasons to establish a standard for white 
    chocolate at this time. First, the number of requests for TMP's for 
    white chocolate has demonstrated to the agency that there is a consumer 
    demand for this product. As discussed in section I. of this document, 
    the agency has granted TMP's for the market testing of up to 166 
    million lb of product containing white chocolate. Second, the 
    establishment of a standard for white chocolate seemingly will benefit 
    industry by making it easier to introduce new products containing white 
    chocolate. It will eliminate the need for firms to obtain a TMP to 
    market the products and to send labels to the agency for review 
    whenever they wish to market a new product containing white chocolate 
    or a different size product than those allowed by their TMP. Third, as 
    stated above, the establishment of the standard will benefit U.S. firms 
    by enhancing the international marketability of their product. Finally, 
    the adoption of a standard will ease FDA's burden because it will end 
    the flow of paper from firms seeking, or operating under a TMP. Thus, 
    the agency tentatively concludes that establishing a standard of 
    identity for white chocolate will be beneficial to consumers and to 
    industry and will also result in more efficient use of the agency's 
    limited resources.
        However, FDA advises that if a standard of identity for white 
    chocolate is established, the agency will review it along with all 
    other standards of identity as part of the Regulation Reinvention 
    Initiative. The standard of identity for white chocolate would be 
    retained, revised, or revoked consistent with decisions regarding other 
    standards of identity for cacao products.
        The proposed standard of identity for white chocolate is slightly 
    different from the standards of identity for other chocolate products 
    in part 163. As described in the 1993 CMA petition, safe and suitable 
    antioxidants are needed to help preserve the product's flavor. The 
    agency has no information that shows that the addition of safe and 
    suitable antioxidants to this product should be prohibited. Therefore, 
    FDA is proposing to provide for the use of antioxidants in proposed 
    Sec. 163.124(b)(5).
        FDA tentatively concludes that it is reasonable to establish the 
    term ``white chocolate'' as the common or usual name for the 
    standardized food described below. The public has become familiar with 
    the term ``white chocolate'' through the recent market testing of 
    products that consist, in whole or in part, of this food. The agency 
    further tentatively concludes that use of this term will aid consumer 
    recognition of the food and will promote honesty and fair dealing in 
    the interest of consumers by eliminating the potential for economic 
    fraud and consumer deception through the substitution of cheaper 
    ingredients for cacao-derived ingredients. Finally, the agency 
    tentatively concludes that the consumer confusion engendered by the use 
    of alternative names for white chocolate-type confections will also be 
    eliminated, and that the use of the standardized term ``white 
    chocolate'' in the product name will enhance the international 
    marketability of such products.
        Therefore, the agency is proposing to revise part 163 by 
    establishing a standard of identity for white chocolate in new 
    Sec. 163.124. Specifically, FDA is proposing to provide that ``white 
    chocolate'' have the following description:
        1. White chocolate is the solid or semiplastic food prepared by 
    intimately mixing and grinding cacao fat with one or more of the 
    optional dairy ingredients and one or more optional nutritive 
    carbohydrate sweeteners and may contain one or more of the other 
    optional ingredients specified in the standard. White chocolate shall 
    be free of coloring material.
        2. White chocolate shall contain not less than 20 percent by weight 
    of cacao fat, not less than 3.5 percent by weight of milkfat, not less 
    than 14 percent by weight of total milk solids, and not more than 55 
    percent by weight nutritive carbohydrate sweetener.
        3. White chocolate may contain the following optional ingredients:
        a. Nutritive carbohydrate sweeteners;
        b. Dairy ingredients:
        i. Cream, milkfat, butter;
        ii. Milk, dry whole milk, concentrated milk, evaporated milk, 
    sweetened condensed milk;
        iii. Skim milk, concentrated skim milk, evaporated skim milk, 
    sweetened condensed skim milk, nonfat dry milk;
        iv. Concentrated buttermilk, dried buttermilk; and
        v. Malted milk;
        c. Emulsifying agents, used singly or in combination, the total 
    amount of which does not exceed 1 percent by weight;
        d. Spices, natural and artificial flavorings, ground whole nut 
    meats, ground coffee, dried malted cereal extract, salt, and other 
    seasonings that do not either singly or in combination impart a flavor 
    that imitates the flavor of chocolate, milk, or butter; or
        e. Antioxidants.
    
    IV. Effective Date
    
        To allow companies time to make any mandatory changes, the agency 
    proposes that any final rule that may be issued based on this proposal 
    become effective January 1, 1998. The final rule would apply to 
    affected products initially introduced or initially delivered for 
    introduction into interstate commerce on or after the effective date.
    
    V. Analysis of Impacts
    
        FDA has examined the impacts of the proposed rule under Executive 
    Order 12866 and the Regulatory Flexibility Act (5 U.S.C. 601-612). 
    Executive Order 12866 directs agencies to assess all costs and benefits 
    of available regulatory alternatives and, when regulation is necessary, 
    to select the regulatory approaches that maximize net benefits 
    (including potential economic, environmental, public health and safety, 
    and other advantages; distributive impacts; and equity). Executive 
    Order 12866 classifies a rule as significant if it meets any one of a 
    number of specified conditions, including having an annual effect on 
    the economy of $100 million, adversely affecting in a material way a 
    sector of the economy, competition, or jobs, or raising novel legal or 
    policy issues. If a rule has a significant impact on a substantial 
    number of small entities, the Regulatory Flexibility Act requires 
    agencies to analyze options that would minimize the economic impact of 
    that rule on small entities. FDA finds that this proposed rule is not a 
    significant rule as defined by Executive Order 12866. The agency 
    acknowledges that under some circumstances this proposed rule may have 
    significant impact on a substantial number of small entities. It has 
    been determined that this rule is not a major rule for the purpose of 
    congressional review (Pub. L. 104-121).
    
    A. Alternatives
    
        FDA is proposing to establish a standard of identity for white 
    chocolate so that only products meeting the criteria described in the 
    proposal may be called ``white chocolate.'' One alternative is to not 
    establish a standard and allow manufacturers to market products bearing 
    the name ``white chocolate'' only with TMP's. Another alternative is to 
    establish a standard for white chocolate that is consistent with the 
    standard described in the petitions where the levels of the ingredients 
    are prescribed. A third alternative is to establish a standard of 
    identity for white
    
    [[Page 10785]]
    
    chocolate with different criteria than those proposed in the petitions. 
    While the agency has no explicit information on the exact formulations 
    or attributes that consumers associate with the term ``white 
    chocolate,'' the agency has written the proposed standard of identity 
    to be as consistent as possible with the existing standards of identity 
    for chocolate products while making the necessary allowances to 
    accommodate the formulations described in the petitions. FDA requests 
    comments on these and other alternatives to the proposed standard of 
    identity.
    
    B. Benefits
    
        The largest benefit of this proposed standard of identity for white 
    chocolate is that it will eliminate a manufacturer's need to prepare 
    and submit requests for TMP's in order to market products bearing the 
    name ``white chocolate.'' Another benefit is that it would eliminate 
    the need to divert scarce agency resources to the evaluation of these 
    TMP requests. Currently, manufacturers are required to obtain TMP's to 
    use the term ``chocolate'' to market products that meet the proposed 
    standard because they deviate from the existing standards of identity 
    for chocolate products. The agency has received more than 1 dozen 
    requests for TMP's for white chocolate in the last year. The 
    establishment of the proposed standard of identity would save hours of 
    manufacturer and FDA time required for the preparation and evaluation 
    of each TMP.
        Additionally, the benefits usually attributed to the establishment 
    of standards of identity are reductions in the potential for consumer 
    confusion and deception. Well defined standards of identity, which 
    establish consistent product names, can assist consumers in finding and 
    comparing products by the name of the food. Finally, the proposed 
    standard will establish a new product name that, according to the 
    petitions, is consistent with the name that a majority of consumers are 
    already using to describe this product.
    
    C. Costs
    
        The establishment of a standard of identity requires that all 
    products that meet the standard bear the standardized name. If there 
    are products that are formulated in accordance with the proposed 
    standard but are not currently marketed under a TMP allowing use of the 
    term ``white chocolate,'' then those products will have to be 
    relabeled. Because ``white chocolate'' will need to appear on each 
    product's principal display panel, the cost for label changes will 
    depend on the number of products needing to be relabeled and the amount 
    of time manufacturers are given to complete the label changes. The 
    actual cost of relabeling will be determined largely by the length of 
    time between the date that the proposed rule becomes final and the 
    effective date of the final rule (the compliance period). In general, 
    the large chocolate manufacturers are already marketing their products 
    under TMP's. For small firms the cost of relabeling ranges from $12,750 
    with a 6-month compliance period to $1,550 with a 24-month compliance 
    period. The agency has no information on the number of products that 
    will need to be relabeled. There are approximately 250 firms that 
    produce chocolate products in the United States, however, the number of 
    products that meet the proposed standard of identity is unknown. This 
    proposal will not affect products that do not meet the standard, 
    because they may continue to be produced and marketed as they currently 
    are. FDA is not able to estimate the total cost of this proposal and 
    requests that comments supply information on this issue.
    
    D. Initial Regulatory Flexibility Analysis
    
        If finalized, this proposed rule will establish a standard of 
    identity for white chocolate. Depending upon the length of the 
    compliance period, this proposal may or may not impose significant 
    compliance costs on industry and there may or may not be a significant 
    impact of these provisions on a substantial number of small businesses. 
    However, because there is some uncertainty related to the costs of 
    compliance, FDA is voluntarily doing this Initial Regulatory 
    Flexibility Analysis. The agency requests comment on this judgment.
        FDA believes that the only provision of this proposed rule that may 
    have a significant impact on a substantial number of small businesses 
    is related to the compliance period. There are approximately 250 firms 
    that produce chocolate products (Standard Industry Classification Code 
    206603) in the United States. Almost all of these businesses have fewer 
    than 500 employees. The agency has no data on the number of products 
    that will meet the proposed standard and that, therefore, may need to 
    be relabeled. The relabeling costs are the primary costs of the rule. 
    Relabeling costs vary inversely to the length of the compliance period. 
    FDA has estimated the compliance costs based on three alternatives for 
    the length of the compliance period.
        With a 6-month compliance period the costs to small firms that 
    produce one product that would meet the proposed standard are estimated 
    to be $12,750 ($3,400 for administrative costs, $3,200 for printing 
    costs, and $6,150 for costs of lost label inventory). With a 12-month 
    compliance period the costs to small firms that produce one product 
    that would meet the proposed standard are estimated to be $3,300 
    ($1,700 for administrative costs, $1,100 for printing costs, and $500 
    for costs of lost label inventory). With a 24-month compliance period 
    the costs to small firms that produce one product that would meet the 
    proposed standard are estimated to be $1,550 ($850 for administrative 
    costs, $700 for printing costs, and nothing for costs of lost label 
    inventory). The agency requests comments on the impact of the 
    compliance period on small chocolate producers and suggestions for 
    minimizing the impact of this proposed rule on small businesses.
    
    VI. Environmental Impact
    
        The agency has determined under 21 CFR 25.24(b)(1) that this action 
    is of a type that does not individually or cumulatively have a 
    significant effect on the human environment. Therefore, neither an 
    environmental assessment nor an environmental impact statement is 
    required.
    
    VII. Paperwork Reduction Act
    
        FDA tentatively concludes that this proposed rule contains no 
    reporting, recordkeeping, labeling, or other third party disclosure 
    requirements. Thus, there is no ``information collection'' 
    necessitating clearance by the Office of Management and Budget. 
    However, to ensure the accuracy of this tentative conclusion, FDA is 
    asking for comment on whether this proposed rule imposes any paperwork 
    burden.
    
    VIII. Comments
    
        Interested persons may, on or before May 27, 1997, submit to the 
    Dockets Management Branch (address above) written comments regarding 
    this proposal. Two copies of any comments are to be submitted, except 
    that individuals may submit one copy. Comments are to be identified 
    with the docket number found in brackets in the heading of this 
    document. Received comments may be seen in the office above between 9 
    a.m. and 4 p.m., Monday through Friday.
    
    List of Subjects in 21 CFR Part 163
    
        Cacao products, Food grades and standards.
        Therefore, under the Federal Food, Drug, and Cosmetic Act and under 
    authority delegated to the Commissioner of Food and Drugs and 
    redelegated to
    
    [[Page 10786]]
    
    the Director, Center for Food Safety and Applied Nutrition, it is 
    proposed that 21 CFR part 163 be amended as follows:
    
    PART 163--CACAO PRODUCTS
    
        1. The authority citation for 21 CFR part 163 continues to read as 
    follows:
    
        Authority: Secs. 201, 301, 401, 403, 409, 701, 721 of the 
    Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321, 331, 341, 343, 
    348, 371, 379e).
    
        2. New Sec. 163.124 is added to subpart B to read as follows:
    
    Sec. 163.124  White chocolate.
    
        (a) Description. (1) White chocolate is the solid or semiplastic 
    food prepared by intimately mixing and grinding cacao fat with one or 
    more of the optional dairy ingredients and one or more optional 
    nutritive carbohydrate sweeteners and may contain one or more of the 
    other optional ingredients specified in paragraph (b) of this section. 
    White chocolate shall be free of coloring material.
        (2) White chocolate contains not less than 20 percent by weight of 
    cacao fat as calculated by subtracting from the weight of the total fat 
    the weight of the milkfat, dividing the result by the weight of the 
    finished white chocolate, and multiplying the quotient by 100. The 
    finished white chocolate contains not less than 3.5 percent by weight 
    of milkfat and not less than 14 percent by weight of total milk solids, 
    calculated by using only those dairy ingredients specified in paragraph 
    (b)(2) of this section, and not more than 55 percent by weight 
    nutritive carbohydrate sweetener.
        (b) Optional ingredients. The following safe and suitable 
    ingredients may be used:
        (1) Nutritive carbohydrate sweeteners;
        (2) Dairy ingredients:
        (i) Cream, milkfat, butter;
        (ii) Milk, dry whole milk, concentrated milk, evaporated milk, 
    sweetened condensed milk;
        (iii) Skim milk, concentrated skim milk, evaporated skim milk, 
    sweetened condensed skim milk, nonfat dry milk;
        (iv) Concentrated buttermilk, dried buttermilk; and
        (v) Malted milk;
        (3) Emulsifying agents, used singly or in combination, the total 
    amount of which does not exceed 1 percent by weight;
        (4) Spices, natural and artificial flavorings, ground whole nut 
    meats, ground coffee, dried malted cereal extract, salt, and other 
    seasonings that do not either singly or in combination impart a flavor 
    that imitates the flavor of chocolate, milk, or butter; or
        (5) Antioxidants.
        (c) Nomenclature. The name of the food is ``white chocolate'' or 
    ``white chocolate coating.'' When one or more of the spices, 
    flavorings, or seasonings specified in paragraph (b)(4) of this section 
    are used, the label shall bear an appropriate statement, e.g., ``Spice 
    added'', ``Flavored with __________'', or ``With __________ added'', 
    the blank being filled in with the common or usual name of the spice, 
    flavoring, or seasoning used, in accordance with Sec. 101.22 of this 
    chapter.
        (d) Label declaration. Each of the ingredients used in the food 
    shall be declared on the label as required by the applicable sections 
    of parts 101 and 130 of this chapter.
    
        Dated: January 6, 1997.
    Fred R. Shank,
    Director, Center for Food Safety and Applied Nutrition.
    [FR Doc. 97-5734 Filed 3-7-97; 8:45 am]
    BILLING CODE 4160-01-F
    
    
    

Document Information

Effective Date:
1/1/1998
Published:
03/10/1997
Department:
Food and Drug Administration
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
97-5734
Dates:
Written comments by May 27, 1997. The agency proposes that any final rule that may be issued based upon this proposal become effective January 1, 1998.
Pages:
10781-10786 (6 pages)
Docket Numbers:
Docket Nos. 86P-0297 and 93P-0091
PDF File:
97-5734.pdf
CFR: (2)
21 CFR 163.124(b)(5)
21 CFR 163.124