**BUREAU OF ALCOHOL, TOBACCO AND FIREARMS**

**Alcohol & Tobacco**

**Office of Alcohol and Tobacco**

![](media/image1.wmf)

**FDA Publishes Food Security Guidance Documents**

*By Karen Freelove (202) 927-8100*

On January 8, 2002, FDA posted to their web page under the Federal
Register documents section, an advanced notification of availability --
Docket No. 01D-0583, CFSAN 200175, two guidance documents related to
food security, entitled, "Food Producers, Processors, Transporters, and
Retailers: Food Security Preventive Measure Guidance" and "Importers and
Filers: Food Security Preventive Measures Guidance". These documents
identify the kinds of preventative measures that can be taken to
minimize the risk of food being subjected to tampering or criminal or
terrorist actions. The direct link for these documents can be found on
[http://www.cfsan.fda.gov](http://www.cfsan.fda.gov/) under Recent
News - What's New -- FDA Food & Cosmetic Announcements. 

# Flavored Malt Beverage Study ![](media/image3.wmf){width="0.3in" height="0.38333333333333336in"}

*By Charlie Tull (210) 805-2777*

The Bureau of Alcohol, Tobacco and Firearms is conducting a study of the
flavored malt beverage product category. Our study of the evolution and
classification of the flavored alcohol beverage category is something we
are considering seriously. The statutory framework governing the
labeling and taxation of alcohol beverages has changed little since the
repeal of Prohibition and presents challenges in application to products
that have emerged over the last decade or so. Products currently
marketed as "flavored malt beverages" that lack the traditional
characteristics (taste and appearance) of malt beverages, and which
derive a significant portion of their volume and alcohol from other than
the malt beverage base, do not fit neatly within the definitions crafted
by Congress over 60 years ago.

In early 1996, we published ATF Ruling 96-1, which discussed concerns
related to flavored malt beverages and set some interim rules pending
rulemaking. For a variety of reasons the rulemaking has been postponed.
While this ruling addresses primarily the labeling of certain malt
beverage products, any final determination on the issues may also
reflect our assessment of the tax consequences of the classification of
these products.

ATF is aware that our decisions in this could have significant impact on
individual brands and producers. For that reason, ATF is studying
carefully the issues and options before taking any position. ATF's
intention is to make a decision on how to proceed within the next
several months. If ATF pursues rulemaking, it will be a public and
participatory process that will afford all interested parties the
opportunity to comment. 

ATF's Policy for Beverage Alcohol Products Made with Hemp

*By Roberta Sanders (202) 927-8450*

On April 6, 2000, ATF issued a policy on the use of hemp or hemp
components in alcohol beverages and on the use of the term "hemp" or
depictions of the hemp plant on labels for alcohol beverages. The policy
does not ban the use of hemp in alcohol beverages, but was created to
assure that beverage alcohol products do not contain a controlled
substance (tetrahydrocannabinol (THC)). ATF also determined that the
appearance of the word "hemp" or depictions of hemp plants on labels was
likely to create a misleading impression as to the true identity or
quality of the product. As of this writing, there are no approved
certificates of label approval for products containing hemp.

On October 9, 2001, the Drug Enforcement Administration (DEA) published
in the Federal Register an interpretive rule stating that under the
Controlled Substance Act and DEA regulations, any amount of THC,
including microscopic traces, is a schedule I controlled substance. The
intent of this rule is to ban from importation or sale foods made from
or containing hemp because they contain traces of THC, the primary
active constituent of marijuana. Products on the market that might be
affected by this action include some alcohol beverages, cheeses,
coffees, corn chips, energy drinks, flours, ice creams, snack bars,
salad oils, sodas and veggie burgers. The comment period for the
proposed rule (DEA-205) ended December 10, 2001.

ATF will not change our April 6, 2000, hemp policy pending finalization
of DEA's rulemaking process on this issue. When DEA's final rule is
published, ATF will apply it to alcohol beverages containing hemp. If
you have any questions about, or would like a copy of the April 6, 2000
hemp policy, please contact the Alcohol Labeling & Formulation Division
Customer Service Team toll free at 1-866-927-ALFD (2533) or by e-mail at
<alfd@atfhq.atf.treas.gov>. 

# Excise Tax Return Packets Mailed ![](media/image4.wmf){width="0.6555555555555556in" height="0.2791666666666667in"}

*By Yolanda Whitehead (513) 684-3334*

The National Revenue Center (NRC) mailed pre-printed excise tax return
packets during the last week of December 2001, to all wineries,
breweries, distilled spirits plants and tobacco manufacturers who filed
an excise tax return during calendar year 2001. Excise taxpayers that do
not receive a pre-printed excise tax return packet should contact their
ATF Specialist in the NRC at 1-800-398-2282 or (513) 684-3334. In
addition to requesting the excise tax return packet, taxpayers should
verify the mailing address on file at the NRC. Taxpayers may also visit
ATF's website at <http://www.atf.treas.gov/alcohol/info/index.htm> and
<http://www.atf.treas.gov/tobacco/index.htm> for additional information.
The local ATF office in Puerto Rico will mail similar packets to
permittees and MNBP claimants located in Puerto Rico.

**Reminder to taxpayers:**

Calculate the total excise tax liability (Line 17 on ATF Form 5000.24)
made during calendar year 2001 to determine if tax payments for calendar
year 2002 must be made using Electronic Funds Transfer (EFT). A taxpayer
must use EFT to pay taxes during calendar year 2002 if:

-   The total excise taxes liability for a single commodity (Beer, Wine,
    Distilled Spirits or Tobacco Products) during calendar year 2001
    exceeded \$5 million, or

-   The taxpayer is part of a control group, whose total excise taxes
    liability for a single commodity during calendar year 2001 exceeded
    \$5 million.

Taxpayers should contact their ATF Specialist at the NRC for further
assistance. 

![](media/image5.wmf){width="0.3159722222222222in"
height="0.4027777777777778in"}