**BUREAU OF ALCOHOL, TOBACCO AND FIREARMS**

**Alcohol & Tobacco**

**Office of Alcohol and Tobacco**

# Corrections to Federal Wine Labeling Regulations {#corrections-to-federal-wine-labeling-regulations .unnumbered}

*By Jennifer Berry (716)434-8039*

On October 3, 2002, the Bureau of Alcohol, Tobacco and Firearms (ATF)
published a Notice of Proposed Rulemaking (Notice No. 953) in the
Federal Register. ATF proposed to correct several errors in the wine
labeling regulations.

The most significant correction concerns when a fruit and agricultural
wine may be treated with sugar and water without ATF considering such
treatment an alteration of the wine's class and type. Currently, 27 CFR
§ 4.22(b)(5) limits such amelioration to wines that have a natural acid
content of at least 7.5 parts per thousand. This figure is incorrect.
The correct minimum acid level should be 7.69 grams per liter or parts
per thousand. ATF propose to amend the regulations to reflect the
correct acid level.

ATF also proposes to correct typographical errors and to remove three
obsolete sections from Part 4, Labeling and Advertising of Wine. Newer
sections have superseded §§ 4.25, 4.35, and 4.72.

ATF requests comments on Notice No. 953. The comment period ends
December 2, 2002. See
<http://www.atf.treas.gov/alcohol/rules/notice_953.pdf> for the full
text of this proposal and instructions on how to comment.

######## 

# The Spirit of Mount Vernon {#the-spirit-of-mount-vernon .unnumbered}

# *By Dan Hiland (202)927-8176* {#by-dan-hiland-202927-8176 .unnumbered}

#  {#section-1 .unnumbered}

# Recently, George Washington's home place at Mount Vernon was the site for a celebration of Washington as one of our country's early, successful whiskey makers. The event called "The Spirit of Mount Vernon" and held on October 8, 2002, featured onsite bottling of whiskeys that have been aged at Mount Vernon, lectures by a historian and an archeologist, and tours of the archeological site of Washington's distillery. Later in the evening, a well-attended dinner was held, along with a charity auction of the whiskey bottled at Mt. Vernon. {#recently-george-washingtons-home-place-at-mount-vernon-was-the-site-for-a-celebration-of-washington-as-one-of-our-countrys-early-successful-whiskey-makers.-the-event-called-the-spirit-of-mount-vernon-and-held-on-october-8-2002-featured-onsite-bottling-of-whiskeys-that-have-been-aged-at-mount-vernon-lectures-by-a-historian-and-an-archeologist-and-tours-of-the-archeological-site-of-washingtons-distillery.-later-in-the-evening-a-well-attended-dinner-was-held-along-with-a-charity-auction-of-the-whiskey-bottled-at-mt.-vernon. .unnumbered}

#  {#section-2 .unnumbered}

# The event was sponsored by the Historic Mount Vernon, the Distilled Spirits Council, the Wine & Spirits Wholesalers of America, and the Congressional Host Committee. For the past few months, representatives from the Regulations Division, National Revenue Center, and Alcohol Labeling and Formulation Division worked with the sponsors of the event to iron out technical details related to the bottling and auctioning of spirits.  {#the-event-was-sponsored-by-the-historic-mount-vernon-the-distilled-spirits-council-the-wine-spirits-wholesalers-of-america-and-the-congressional-host-committee.-for-the-past-few-months-representatives-from-the-regulations-division-national-revenue-center-and-alcohol-labeling-and-formulation-division-worked-with-the-sponsors-of-the-event-to-iron-out-technical-details-related-to-the-bottling-and-auctioning-of-spirits. .unnumbered}

#  {#section-3 .unnumbered}

# ATF was pleased to see that the event turned out to be a complete success for the sponsors.  {#atf-was-pleased-to-see-that-the-event-turned-out-to-be-a-complete-success-for-the-sponsors. .unnumbered}

#  {#section-4 .unnumbered}

**The Geographic Significance of Viticultural Area Names**

*By Nancy Sutton (415)271-1254 and Marjorie Ruhf (202)927-8210*

ATF reminds wine industry members that viticultural area names are
geographically significant because they are appellations of origin.
[When we propose a new viticultural area, wine producers and bottlers
who use similar brand names should consider the impact on their
products.]{.underline}

Labeling regulations at 27 CFR 4.39(i) prohibit the use of a
geographically or viticulturally significant brand name on a wine unless
the wine meets the appellation of origin requirements for the named
geographic area. In the case of a viticultural area, 85 percent of the
grapes used in the wine must have been grown in the named area.

For example, if you own a winery that uses the Grape Valley Winery brand
name and ATF establishes a Grape Valley viticultural area, you must
review your approved labels for appellation of origin eligibility. You
may continue to use the Grape Valley Winery brand name if at least 85
percent of the grapes used to make the wine come from the Grape Valley
viticultural area and the wine is fully finished in the State where
Grape Valley is located. If a wine is not eligible for the Grape Valley
appellation, you must not use the Grape Valley Winery brand name. You
must apply for a new certificate of label approval

that shows a different brand name for the wine. The new brand name must
not suggest the viticultural area name.

The prohibition on the use of geographic brand names in 27 CFR 4.39(i)
contains an exception. A geographic brand name may be used on the labels
of wines that are not eligible for the appellation of origin if---

-   The name was approved for use before July 7, 1986, AND

-   The bottler puts information on the label that makes it clear to the
    consumer that the grapes used did not come from the area suggested
    by the name.

It is the bottler\'s responsibility to assure that the wine in the
bottle matches the claims on the label. If ATF discovers that a wine is
ineligible for the appellation suggested by its geographic brand name,
we will take corrective action. For example, we could require
re‑labeling of wines or cite violations of the labeling regulations.

ATF gives formal notice of proposed rules, including proposed
viticultural areas, by publishing them in the Federal Register. We also
give informal notice by sending press releases to wine industry
publications, mentioning the petition in the A&T newsletter, and putting
the Notice on our Web site
\[<http://www.atf.treas.gov/alcohol/rules/index.htm>\] when we publish
in the Federal Register. We generally allow a 60-day comment period on
proposed viticultural areas after Notices of Proposed Rulemaking are
published. Each notice contains instructions for commenting by mail,
fax, e-mail, or Web-based form.

Anyone may petition for a change in ATF regulations under 27 CFR 70.701.
If you want to petition for a change in the viticultural area
designation process or the use of geographic brand names on wine labels,
contact the ATF Regulations Division, Room 5000, 650 Massachusetts
Avenue, NW., Washington, DC 20226.

#  {#section-5 .unnumbered}

#  {#section-6 .unnumbered}

**More on "How To Avoid Common Pitfalls" When Applying for Permits**

*By Sandy Clark, National Revenue Center (513)684-7274*

The National Revenue Center (NRC) processes permit applications for ATF
regulated industries, nationwide. We've again identified some common
mistakes made by companies applying, this time, for permits in our "high
volume" areas - wholesaling and importing alcoholic beverages, and
importing tobacco products. We offer these hints on what our customers
can do to avoid the most common mistakes made during the application
process:

-   Applicants for alcoholic beverage **wholesaler or importer** basic
    permits must show the source of funds invested in the business in
    Item 8 (Owner Information) on ATF Form 5100.24, "Application for
    Basic Permit Under The Federal Alcohol Administration Act". This
    information must include the name and location (city and state) of
    the financial institution (bank, savings and loan, etc.) from which
    the funds were derived (or are currently located if this investment
    came from personal savings, loans or other similar means). If Item 8
    is incomplete, the NRC can't process the application until we
    contact the applicant and obtain additional information. This
    routinely means delays in issuing the permit.

-   Applicants for **tobacco importer** basic permits must include
    source of funds information in Item 13 on ATF Form 5230.4,
    "Application For Permit Under 26 U.S.C. Chapter 52, Importer of
    Tobacco Products". Item 13 is often completely overlooked by
    applicants and again this will routinely cause delays in processing
    applications and issuing permits.

Anyone needing help in obtaining or completing these, or any other
permit application forms, should contact the National Revenue Center at
1-800-398-2282 or e-mail us at: <natlrevctr@cinc.atf.treas.gov>.

# 

# 

# Domestic Ice Wine Labeling

####### By Leslie Nelson (202) 927-8140

ATF will soon be issuing a ruling, which holds that wine made from
grapes frozen after harvest may not be labeled with the term "ice wine",
or any variation thereof, and if the wine is labeled to suggest it was
made from such frozen grapes, the label must be qualified to show that
the grapes were frozen post-harvest. This ruling amplifies ATF Rulings
78-4 and 82-4. ATF Ruling 78-4, 1978 C.B. 61, held that the term "ice
wine" may only appear on labels of wine made from grapes that were
partially frozen on the vine. ATF Ruling 82-4, 1982-2 Q.B. 43 held, in
part, that wine made from concentrate or which has been sweetened or
fortified may not bear labels containing the terms "late harvest," "ice
wine" or similar designations.

ATF is aware that a number of domestic wine producers desiring to make a
wine similar in style to ice wine are practicing cryoextraction in which
the grapes are frozen after harvest but before pressing. This method is
not weather-dependent and is a cost-effective means of producing juice
with properties similar to juice pressed from grapes frozen on the vine.
The production of true ice wine is a very labor intensive process with
the pressing of the grapes frozen on the vine yielding a much smaller
quantity of very sweet, concentrated juice.

27 CFR 4.39(a)(1) prohibits the use of any term or statement on a wine
label which tends to create a misleading impression about the wine.
Because "ice wine" is a recognized term for wine made from grapes frozen
on the vine, the use of this term is misleading to

consumers if used on a label of wine made using methods such as
cryoextraction which simulates the properties of ice wine. 27 CFR
4.39(l) impacts the labeling of ice wine as well. 27 CFR 4.39(l)
prohibits the use of any foreign

term on a domestic wine label which either describes a

condition of the grapes at the time of harvest or which denotes quality
under foreign law. ALFD will

evaluate foreign terms appearing on domestic wine labels

which might lead the consumer to believe the product is ice wine. 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.

**Organic Labeling**

*By Rick Evanchec, (202) 927-8140*

On October 8, 2002, ATF issued a temporary rule to amend its alcohol
labeling and advertising rules. The amended rules cross-reference the
United States Department of Agriculture\'s (USDA) National Organic
Program (NOP) rules. Any alcohol beverage labeled or advertised with an
organic claim must comply with both NOP rules administered by USDA and
the applicable rules administered by ATF. You may view the ATF temporary
rule at
[\<http://www.atf.treas.gov/regulations/td483.pdf\>]{.underline}. Anyone
wishing to submit comment on the rule may do so until December 9, 2002.