**BUREAU OF ALCOHOL, TOBACCO AND FIREARMS**

**Alcohol & Tobacco**

**Office of Alcohol and Tobacco**

# Avoid Delays -- Check Your Tobacco Importer Permit Expiration Date Now {#avoid-delays-check-your-tobacco-importer-permit-expiration-date-now .unnumbered}

*By Mimi Mengos (513)684-7232*

The National Revenue Center's (NRC) Wholesaler/Importer Units in
Cincinnati are now processing applications to renew tobacco importer
permits. Please note that some previously issued importer permits will
expire on December 31, 2002, including a number of "conditional"
one-year permits.

In order for the NRC to renew existing permits (and for your business to
continue importing, uninterrupted), you must submit an "Application For
Permit Under 26 U.S.C. Chapter 52 Importer of Tobacco Products" (ATF F
5230.4) prior to the expiration date.

-   Tobacco Importer permits will be renewed for three-years. It's
    important to send in your renewal applications early to avoid
    possible delays in your operations.

-   If you've had changes since filing your last application, such as
    changes in officers, stock, or ownership, please indicate these
    items in your application package.

The NRC advises all tobacco importers to check the expiration date block
on their current Permit (ATF F 5200.24) and make sure that, if your
expiration date is approaching, you've contacted the NRC and/or
submitted the necessary paperwork for renewal.

Anyone needing further assistance should contact the National Revenue
Center Wholesaler/Importer Units at 1-800-398-2282 (513-684-3337) or
e-mail us at: <natlrevctr@cinc.atf.treas.gov>.****

**President Bush Signs the New Homeland Security Bill**

*By John Daffron (202)927-5000*

On November 25^th^ the President signed into law the new Department of
Homeland Security. Included in the legislation were provisions affecting
the transfer of the firearms, arson and explosive functions of ATF to
the Department of Justice, and the establishment of a new Bureau within
the Department of the Treasury for alcohol and tobacco. The new DOJ
Bureau, titled the Bureau of Alcohol, Tobacco, Firearms and Explosives,
is authorized as a separate and distinct entity. The new Treasury bureau
will be titled the Tax and Trade Bureau.

Under the terms of the House measure, the DOJ Bureau, ATFE, will be
responsible for investigation of criminal and regulatory violations of
the Federal firearms, explosives, arson, and tobacco smuggling laws. In
addition, the Attorney General is authorized to delegate other functions
to the bureau as he may deem appropriate which involve violent crime or
domestic terrorism.

The authorities, functions, personnel, and assets of ATF relating to the
administration and enforcement of the Internal Revenue Code and Federal
Alcohol Administration Act will remain in Treasury.

As the details of the transition are worked out we will provide updates
in future newsletters.****

#  {#section .unnumbered}

# ![](media/image1.png) {#section-1 .unnumbered}

#  {#section-2 .unnumbered}

# How to Properly Discontinue a Brewery Operation {#how-to-properly-discontinue-a-brewery-operation .unnumbered}

# *By Loraine Craycraft (513)684-6961* {#by-loraine-craycraft-513684-6961 .unnumbered}

#  {#section-3 .unnumbered}

The National Revenue Center (NRC) receives and processes a "Brewer's
Notice" from every brewer who discontinues their business. Based on our
experience, we have developed an "Out of Business" package which lists
each step an industry member must go through to properly close their
brewery physical premises and the files maintained by the NRC. If you
are a brewer who will be closing your doors, you should call the NRC in
advance, notify us that brewing operations will cease, and get an "Out
of Business" package mailed to you. Here are the items that are included
in this package along with some helpful hints for completing them:

-   Brewer's Notice, ATF F 5130.10: Must be completed and include the
    date the brewery ceased or will cease operations.

-   Excise Tax Return, ATF F 5000.24: Must be completed and clearly
    marked "**FINAL**", even if the liability for the last tax period is
    zero. All Excise Tax returns must be filed and paid prior to ATF
    releasing the Brewer's Bond.

-   Brewer's Report of Operations, ATF F 5130.9 or Brewpub Report of
    Operations, ATF F 5130.26: Must be completed and clearly marked
    "**FINAL**." The ending on hand balance must be zero on ATF F
    5130.9. In the remarks section you need to write, "Operations ceased
    as of: (date)." You must file all Brewer's Report of Operations or
    Brewpub Report of Operations that are outstanding.

-   All Special Occupational Tax returns must be filed and paid prior to
    ATF releasing the Brewer's Bond.

Note that all beer remaining on hand must be lawfully disposed of. We
may ask that ATF field Inspectors

contact you and conduct a closeout inspection at your premises. Once we
receive and verify your final

paperwork, we will mail you a "Termination Letter", an "Approved Amended
Final Brewer's Notice" and a "Bond Termination Letter", as applicable.

Anyone needing help obtaining or completing these, or any other brewery
application forms, should contact the NRC at 1-800-398-2282
(513-684-3337) or e-mail us at: <natlrevctr@cinc.atf.treas.gov>.****

#  {#section-4 .unnumbered}

**Red Hot -- Hill(s)**

*By Tim DeVanney (202)927-8196*

The name \"Red Hill\" is garnering a lot of attention in the wine
industry these days. We have received two petitions for viticultural
areas using the name \"Red Hill,\" and word is that the southern
hemisphere is getting into the act, too. On October 30^th^, the Federal
Register published Notices of Proposed Rulemakings (NPRMs) for Red Hill
(Oregon) and Red Hills (California). Meanwhile, on the other side of the
world, Australia and New Zealand are said to be in the process of
establishing viticultural areas using the same name.

We published Notices No. 960\--Red Hill (Oregon) and No. 961\--Red Hills
(California) simultaneously in order to solicit comments on the proposed
names and to seek suggestions about eliminating possible name confusion.
We are considering using the names "Red Hill---Oregon" and "Red
Hills---California" to distinguish between the viticultural areas. In
both cases, the viticultural area name would include the appropriate
State name.

Notice 960, \"Red Hill\" (Oregon) results from a petition filed by Mr.
Wayne Hitchings, a vineyard owner. The proposed viticultural area is in
the State of Oregon in northeastern Douglas County and is entirely
within the Umpqua Valley viticultural area. The proposed area consists
of approximately 8.6 square miles or 5,500 acres. Mr. Hitchings, the
sole grower within these boundaries, devotes approximately 194 acres to
the cultivation of wine grapes. Currently, no bonded wineries exist in
the proposed area.

Notice 961, \"Red Hills\" (California) results from a petition filed by
Ms. Sara Schorske of Compliance Service of America on behalf of a group
of grape growers in the

Red Hills area. The petition proposes the establishment of the
31,250-acre "Red Hills" viticultural area in Lake County, California.
This proposed viticultural area lies entirely within the Clear Lake
viticultural area in Lake County, which lies, in turn, entirely within
the multicounty North Coast viticultural area. ****

#  {#section-5 .unnumbered}

**Bennett Valley Viticultural Area Proposed**

*By Nancy Sutton (415)271-1254*

On November 22, 2002, the Federal Register published a Notice of
Proposed Rulemaking, Notice No. 963, requesting public comments on the
petition to establish the Bennett Valley viticultural area. This area of
northern California consists of approximately 8,140 acres of valley and
upland area, with 650 acres currently planted to grapes. The proposed
Bennett Valley viticultural area lies entirely in the North Coast
viticultural area. It is predominantly within the Sonoma Valley
viticultural area and also has small portions in the Sonoma Coast and
Sonoma Mountain viticultural areas. The public comment period closes
January 21, 2003.****

# 

New Customer Service Phone Equipment in Alcohol Labeling & Formulation
Division

####### By Marsha Heath (202)927-8140

The Alcohol Labeling and Formulation Division (ALFD) is committed to
providing quality customer service to all our customers. To further our
efforts to improve customer service, we recently installed equipment
that monitors and records all telephone calls made to our Customer
Service Team.

The ALFD Customer Service Team was established on March 27, 2000, to
deal with inquiries, questions and concerns relating to beverage alcohol
labeling and formulation. Since that date ALFD has made changes and
improvements to our services based on the needs of the industry. This
latest step is being taken to ensure the

accuracy of the information being distributed to callers and for
developmental and training purposed for our customer service
specialists.

The ALFD Customer Service Team is dedicated to maintaining a positive
reputation and great rapport with the alcohol industry. We are certain
that this measure will be beneficial to everyone involved.

**[ALFD Customer Service Team:]{.underline}**

Reach us by telephone between 8:30 am and 4:30 pm (ET):

Toll free: 1-866-927-ALFD (2533)

Commercial: (202)927-8140

Contact us by e-mail anytime:

alfd@atfhq.atf.treas.gov

# 

Public Health Security and Bioterrorism Preparedness and Response Act of
2002

# *By Theresa Glasscock (202) 927-8100*

Are you aware of the Public Health Security and Bioterrorism
Preparedness and Response Act of 2002, also referred to as the
"Bioterrorism Act" (Public Law 107-88)? If not, please take the time to
read this article.

President Bush signed the Public Health Security and Bioterrorism
Preparedness and Response Act of 2002, into law, on June 12, 2002. This
legislation authorizes the Department of Health and Human Services to
take specific measures to protect the nation's food and drug supplies
against bioterrorist threats. Under the interpretation of this law,
alcohol beverages are considered a food and as such the alcohol beverage
industry is affected.

The FDA has been tasked with implementing PL 107-88. Some of the
requirements of PL 107-88 include: the registration with FDA of "Food
Facilities", which include alcohol beverages; record keeping
requirements of the "Food Facilities", and inspection of said facilities
and of the product (including imported products), prior notification of
imported products and the detention of those products if they do not
meet the requirements outlined in the regulations currently being
drafted by FDA. This law may very well impact you and your business
operations.

For more information to ascertain how you may be affected by PL 107-88,
please visit the Food and Drug Administration website at
**[www.fda.gov](http://www.fda.gov/).**

Health Warning Statement

####### By Adam Krautheim (202) 927-8140

The Alcohol Labeling and Formulation Division (ALFD) has noticed an
increase in the number of ATF Forms 5100.31, Application for and
Certification/Exemption of Label/Bottle Approval (COLA), that fail to
comply with the mandatory Health Warning Statement requirements. As of
November 1989, a predetermined warning statement was established for all
alcohol beverages containing 0.5% or more alcohol by volume. The
implementing regulations regarding the Health Warning Statement may be
found in 27 Code of Federal Regulations (CFR), Part 16.

In an effort to minimize the rejection of your COLA applications due to
Health Warning Statement problems, ALFD would like to call attention to
a few common mistakes found on COLA submissions. These inaccuracies
include:

-   Illegibility: Not clearly readable; lacks contrasting background.

-   Compressed Statement: The letters and/or words are compressed in
    such a manner that causes the statement to be illegible.

-   Not separate and apart from all other information: Lacks a space or
    graphic line before the beginning and after the end of the Health
    Warning Statement and all other information.

-   Contains misspelled words, missing or added words or letters that
    change or confuse the statement's meaning.

-   Statement is printed in type that is too small.

-   The words "**GOVERNMENT WARNING**" are not bold, capitalized, or are
    misspelled.

We at ALFD hope this information proves helpful in the preparation and
submission of your label applications. If you have any questions
regarding this matter, please

contact ALFD Customer Service at (202) 927-8140, toll free (866)
927-ALFD (2533) or by email at alfd@atfhq.atf.treas.gov.