25382 Federal Register / Vol. 77, No. 83 / Monday, April 30, 2012 / Proposed Rules 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 5 

[Docket No. TTB–2012–0002; Notice 

No. 127] 

RIN 1513–AB33 

Proposed Amendment to the 

Standards of Identity for Distilled 

Spirits 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) proposes to 

amend the regulations setting forth the 

standards of identity for distilled spirits 

to include ‘‘Cachac ̧a’’ as a type of rum 

and as a distinctive product of Brazil. 

This proposal follows requests received 

from the Government of Brazil and 

subsequent discussions with the Office 

of the United States Trade 

Representative. TTB invites comments 

on this proposed amendment to the TTB 

regulations. 

DATES: Comments must be received on 

or before June 29, 2012. 

ADDRESSES: You may send comments on 

this notice to one of the following 

addresses: 

• http://www.regulations.gov: To 

submit comments via the Internet, use 

the comment form for this notice as 

posted within Docket No. TTB–2012– 

0002 at ‘‘Regulations.gov,’’ the Federal 

e-rulemaking portal; 

• Mail: Director, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, P.O. Box 14412, 

Washington, DC 20044–4412. 

• Hand Delivery/Courier in Lieu of 

Mail: Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street NW., Suite 

200–E, Washington, DC 20005. 

See the Public Participation section of 

this notice for specific instructions and 

requirements for submitting comments, 

and for information on how to request 

a public hearing. 

You may view copies of this notice, 

selected supporting materials, and any 

comments TTB receives about this 

proposal within Docket No. TTB–2012– 

0002 at http://www.regulations.gov. A 

link to this Regulations.gov docket is 

posted on the TTB Web site at http://

www.ttb.gov/regulations_laws/all_

rulemaking.shtml under Notice No. 127. 

You also may view copies of this notice, 

all supporting materials, and any 

comments TTB receives about this 

proposal by appointment at the TTB 

Information Resource Center, 1310 G 

Street NW., Washington, DC 20005. 

Please call 202–453–2270 to make an 

appointment. 

FOR FURTHER INFORMATION CONTACT: 

Christopher M. Thiemann, Regulations 

and Rulings Division, Alcohol and 

Tobacco Tax and Trade Bureau, 1310 G 

Street NW., Suite 200E, Washington, DC 

20005; telephone 202–453–1039, Ext. 

138. 

SUPPLEMENTARY INFORMATION: 

Background 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), codified 

in the United States Code at 27 U.S.C. 

205(e), authorizes the Secretary of the 

Treasury to prescribe regulations 

relating to the packaging, marking, 

branding, labeling, and size and fill of 

containers of alcohol beverages that will 

prohibit consumer deception and 

provide the consumer with adequate 

information as to the identity and 

quality of the product. The Alcohol and 

Tobacco Tax and Trade Bureau (TTB) 

administers the FAA Act pursuant to 

section 1111(d) of the Homeland 

Security Act of 2002, codified at 6 

U.S.C. 531(d). The Secretary has 

delegated various authorities through 

Treasury Department Order 120–01 

(Revised), dated January 21, 2003, to the 

TTB Administrator to perform the 

functions and duties in the 

administration and enforcement of this 

law. Regulations implementing the 

provisions of section 105(e) as they 

relate to distilled spirits are set forth in 

part 5 of title 27 of the Code of Federal 

Regulations (27 CFR part 5). 

Classes and Types of Spirits 

The TTB labeling regulations require 

that the class and type of distilled 

spirits appear on the product’s brand 

label. See 27 CFR 5.32(a)(2) and 5.35. 

Those regulations provide that the class 

and type must be stated in conformity 

with § 5.22 of the TTB regulations (27 

CFR 5.22) if defined therein. Otherwise, 

the product must be designated in 

accordance with trade and consumer 

understanding thereof, or, if no such 

understanding exists, by a distinctive or 

fanciful name, and, in either case (with 

limited exceptions), followed by a 

truthful and adequate statement of 

composition. 

Section 5.22 establishes standards of 

identity for distilled spirits products 

and categorizes these products 

according to various classes and types. 

As used in § 5.22, the term ‘‘class’’ refers 

to a general category of spirits, such as 

‘‘whisky’’ or ‘‘brandy.’’ Currently, there 

are 12 different classes of distilled 

spirits recognized in § 5.22, including 

whisky, rum, and brandy. The term 

‘‘type’’ refers to a subcategory within a 

class of spirits. For example, ‘‘Cognac’’ 

is a type of brandy, and ‘‘Canadian 

whisky’’ is a type of whisky. 

Classification of Cachac ̧a 

‘‘Cachac ̧a’’ is a term recognized by the 

Brazilian Government as a designation 

for a Brazilian distilled spirits product 

made from sugar cane. Cachac ̧a 

products are generally classified as rums 

under the terms of TTB’s current 

labeling regulations. The standard of 

identity for rum is set forth in § 5.22(f) 

as follows: 

Class 6; rum. ‘‘Rum’’ is an alcoholic 

distillate from the fermented juice of sugar 

cane, sugar cane syrup, sugar cane molasses, 

or other sugar cane by-products, produced at 

less than 190° proof in such manner that the 

distillate possesses the taste, aroma and 

characteristics generally attributed to rum, 

and bottled at not less than 80° proof; and 

also includes mixtures solely of such 

distillates. 

The above standard does not currently 

provide for any subcategories or ‘‘types’’ 

of rum. 

In some instances, products identified 

by importers as Cachac ̧a have been 

manufactured using a small quantity of 

corn or corn syrup in the fermentation 

process. Since these products do not 

meet the standard for rum as described 

at § 5.22(f), TTB has required the 

labeling of these products as distilled 

spirit specialty products in accordance 

with § 5.35. In some instances, these 

products have been labeled with the 

fanciful name ‘‘Cachac ̧a,’’ followed by a 

truthful and adequate statement of 

composition. 

2001 Brazilian Petition 

By letter dated April 30, 2001, the 

Embassy of the Government of Brazil 

submitted a petition to the Bureau of 

Alcohol, Tobacco and Firearms (ATF) in 

which it requested that ATF amend its 

regulations to recognize the Brazilian 

distilled spirits product known as 

‘‘Cachac ̧a’’ as a distinctive product of 

Brazil. 

The Brazilian Embassy stated that 

Cachac ̧a is known worldwide as a 

Brazilian product and that Brazil has 

been a supplier of Cachac ̧a to the United 

States for many decades. After 

preliminary discussions with the 

Brazilian Embassy, no further action 

was taken with regard to the request. 

2006 Brazilian Petition 

In a petition dated March 6, 2006, the 

Brazilian Embassy requested that TTB 

amend its regulations to provide 


srobinson on DSK4SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 83 / Monday, April 30, 2012 / Proposed Rules 25383 

recognition of Cachac ̧a as a distinctive 

product of Brazil. 

Among other things, the Embassy 

noted Brazilian Decree No. 4851, of 

October 2, 2003, which defines 

‘‘Cachac ̧a’’ as ‘‘the typical and exclusive 

designation of the sugar cane aguardente 

produced in Brazil, with an alcohol 

content of 38 to 48 percent by volume 

at 20 degrees Celsius, obtained from the 

distillation of the fermented must of 

sugar cane with specific sensory 

characteristics, to which up to six grams 

of sugar per liter may be added, 

expressed in terms of sucrose.’’ 

Brazil requested that TTB initiate 

regulatory action to recognize Cachac ̧a 

as a typically and exclusively Brazilian 

beverage. 

In addition, following discussions 

between officials of Brazil and the 

Office of the United States Trade 

Representative (USTR), and after 

consultations between USTR, and TTB, 

the United States Trade Representative 

and Brazil’s Minister of Development, 

Industry, and Foreign Trade signed an 

agreement on April 9, 2012, setting out 

a procedure that could lead each party 

to recognize certain distinctive distilled 

spirits produced in the other party’s 

territory, including Cachac ̧a. The 

agreement provides in part that if, 

following the publication of a notice of 

proposed rulemaking, the United States 

publishes a final rule that provides, 

among other things, that Cachac ̧a is a 

type of rum that is a distinctive product 

of Brazil, then Brazil, within 30 days 

thereafter, will recognize Bourbon 

Whiskey and Tennessee Whiskey as 

distinctive products of the United 

States. 

In addition to the petition from the 

Brazilian Government and advice from 

USTR, TTB has received a number of 

essentially identical letters from private 

parties supporting the recognition of 

Cachac ̧a as a distinctive type of spirit. 

TTB Regulatory Proposal 

TTB considers that it is appropriate to 

recognize Cachac ̧a as a distinctive 

product of Brazil. Therefore, this notice 

proposes to recognize Cachac ̧a as a type 

within the class designation rum that 

would be recognized as a distinctive 

product of Brazil, manufactured in 

Brazil in compliance with the laws of 

Brazil regulating the manufacture of 

Cachac ̧a for consumption in that 

country. Thus, the product may simply 

be labeled as ‘‘Cachac ̧a’’ without the 

term ‘‘rum’’ on the label, just as a 

product labeled with the type 

designation ‘‘Cognac’’ is not required to 

also bear the class designation 

‘‘brandy.’’ 

The proposed type description will 

not include as ‘‘Cachac ̧a’’ any spirits 

that use corn or corn syrup in the 

fermentation process. TTB has 

confirmed with the Brazilian 

Government that the Brazilian standard 

for Cachac ̧a would not allow for the use 

of corn or corn syrup in the 

fermentation process. As such, under 

the terms of the proposed text set forth 

in this document, distilled spirits that 

use any corn or corn syrup in the 

fermentation process would not meet 

the proposed standard for ‘‘Cachac ̧a’’ 

because they are not manufactured in 

compliance with the laws of Brazil 

regulating the manufacture of Cachac ̧a 

for consumption in that country. Such 

products would not be entitled to be 

labeled as Cachac ̧a. 

The Brazilian standard allows 

products designated as Cachac ̧a to have 

an alcohol content ranging from 38 to 48 

percent alcohol by volume. However, 

since the standard proposed in this 

document would identify Cachac ̧a as a 

type of rum, and the United States 

standard requires that rum must be 

bottled at not less than 40 percent 

alcohol by volume, or 80 degrees proof, 

any ‘‘Cachac ̧a’’ imported into the United 

States would have to conform to this 

minimum bottling proof requirement. A 

product that is bottled at below 40 

percent alcohol by volume would fall 

outside this class and type designation. 

Depending on the way that such a 

product is manufactured, it could be 

labeled as a ‘‘diluted Cachac ̧a’’ or a 

distilled spirits specialty product 

bearing a statement of composition. 

Public Participation 

Comments Invited 

TTB invites comments from interested 

members of the public on this proposed 

rule, including on whether the proposed 

amendment would have an adverse 

impact on owners of U.S. trademarks 

and on the extent to which distilled 

spirits labeled as ‘‘Cachac ̧a’’ are 

produced outside Brazil. Although 

information currently before TTB 

suggests that all distilled spirits 

currently sold in the United States with 

‘‘Cachac ̧a’’ on the label are produced in 

Brazil, comments on the extent of 

production outside of Brazil will assist 

TTB in determining whether Cachac ̧a 

should be recognized as a distinctive 

product of Brazil. 

Submitting Comments 

You may submit comments on this 

notice by using one of the following 

three methods: 

• Federal e-Rulemaking Portal: You 

may send comments via the online 

comment form associated with this 

notice in Docket No. TTB–2012–0002 

on ‘‘Regulations.gov,’’ the Federal 

e-rulemaking portal, at http://www.

regulations.gov. A link to this 

Regulations.gov docket is available 

under Notice No. 127 on the TTB Web 

site at http://www.ttb.gov/regulations_

laws/all_rulemaking.shtml. 

Supplemental files may be attached to 

comments submitted via 

Regulations.gov. For information on 

how to use Regulations.gov, click on the 

site’s Help or FAQ tabs. 

• U.S. Mail: You may send comments 

via postal mail to the Director, 

Regulations and Rulings Division, 

Alcohol and Tobacco Tax and Trade 

Bureau, P.O. Box 14412, Washington, 

DC 20044–4412. 

• Hand Delivery/Courier: You may 

hand-carry your comments or have them 

hand-carried to the Alcohol and 

Tobacco Tax and Trade Bureau, 1310 G 

Street NW., Suite 200–E, Washington, 

DC 20005. 

If you are commenting on behalf of an 

association, business, or other entity, 

your comment must include the entity’s 

name as well as your name and position 

title. If you comment via 

Regulations.gov, please include the 

entity’s name in the ‘‘Organization’’ 

blank of the comment form. If you 

comment via postal mail, please submit 

your entity’s comment on letterhead. 

You may also write to the 

Administrator before the comment 

closing date to ask for a public hearing. 

The Administrator reserves the right to 

determine whether to hold a public 

hearing. 

Confidentiality 

All submitted comments and 

attachments are part of the public record 

and subject to disclosure. Do not 

enclose any material in your comments 

that you consider to be confidential or 

inappropriate for public disclosure. 

Public Disclosure 

On the Federal e-rulemaking portal, 

Regulations.gov, TTB will post, and you 

may view, copies of this notice, selected 

supporting materials, and any electronic 

or mailed comments we receive about 

this proposal. A link to the 

Regulations.gov docket containing this 

notice, any posted supporting materials, 

and the comments received on this 

proposal is available on the TTB Web 

site at http://www.ttb.gov/regulations_

laws/all_rulemaking.shtml under Notice 

No. 127. You may also reach the 

relevant docket through the 

Regulatons.gov search page at http://

www.regulations.gov. For information 


srobinson on DSK4SPTVN1PROD with PROPOSALS
25384 Federal Register / Vol. 77, No. 83 / Monday, April 30, 2012 / Proposed Rules 

on how to use Regulations.gov, click on 

the site’s Help or FAQ tabs. 

All posted comments will display the 

commenter’s name, organization (if 

any), city, and State, and, in the case of 

mailed comments, all address 

information, including email addresses. 

We may omit voluminous attachments 

or material that we consider unsuitable 

for posting. 

You also may view copies of this 

notice, the related petitions, any other 

supporting materials, and any electronic 

or mailed comments we receive about 

this proposal by appointment at the TTB 

Information Resource Center, 1310 G 

Street NW., Washington, DC 20005. You 

may also obtain copies at 20 cents per 

8.5- × 11-inch page. Contact our 

information specialist at the above 

address or by telephone at 202–453– 

2270 to schedule an appointment or to 

request copies of comments or other 

materials. 

Regulatory Flexibility Act 

We certify that this proposed 

amendment, if adopted, would not have 

a significant economic impact on a 

substantial number of small entities. 

The proposed amendment only amends 

the standards of identity for rum at 

27 CFR 5.22(f) and does not impose any 

new reporting, recordkeeping, or other 

administrative requirement. Therefore, 

no regulatory flexibility analysis is 

required. 

Executive Order 12866 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. 

Drafting Information 

Christopher M. Thiemann of the 

Regulations and Rulings Division 

prepared this notice. 

List of Subjects in 27 CFR Part 5 

Advertising, Consumer protection, 

Customs duties and inspection, Imports, 

Labeling, Liquors, and Packaging and 

containers. 

The Proposed Amendment 

For the reasons discussed in the 

preamble, TTB proposes to amend 

27 CFR part 5, as follows: 

PART 5—LABELING AND 

ADVERTISING OF DISTILLED SPIRITS 

1. The authority citation for part 5 

continues to read as follows: 

Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 

205. 

2. Section 5.22 is amended by revising 

paragraph (f) to read as follows: 

§ 5.22 The standards of identity. 

* * * * * 

(f) Class 6; rum. ‘‘Rum’’ is an 

alcoholic distillate from the fermented 

juice of sugar cane, sugar cane syrup, 

sugar cane molasses, or other sugar cane 

by-products, produced at less than 190° 

proof in such manner that the distillate 

possesses the taste, aroma, and 

characteristics generally attributed to 

rum, and bottled at not less than 80° 

proof; and also includes mixtures solely 

of such distillates. 

(1) ‘‘Cachac ̧a’’ is a type of rum that is 

a distinctive product of Brazil, 

manufactured in Brazil in compliance 

with the laws of Brazil regulating the 

manufacture of Cachac ̧a for 

consumption in that country. The word 

‘‘Cachac ̧a’’ may be spelled with or 

without the diacritic mark (i.e., 

‘‘Cachac ̧a’’ or ‘‘Cachaca’’). 

(2) [Reserved] 

* * * * * 

Signed: April 9, 2012. 

John J. Manfreda, 

Administrator. 

Approved: April 11, 2012. 

Timothy E. Skud, 

Deputy Assistant Secretary, (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2012–10332 Filed 4–27–12; 8:45 am] 

BILLING CODE 4810–31–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2012–0267; FRL–9665–6] 

Revisions to the California State 

Implementation Plan, San Joaquin 

Valley Unified Air Pollution Control 

District 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

revisions to the San Joaquin Valley 

Unified Air Pollution Control District 

(SJVUAPCD) portion of the California 

State Implementation Plan (SIP). These 

revisions concern volatile organic 

compound (VOC) emissions from wine 

storage. We are approving a local rule 

that regulates these emission sources 

under the Clean Air Act as amended in 

1990 (CAA or the Act). We are taking 

comments on this proposal and plan to 

follow with a final action. 

DATES: Any comments must arrive by 

May 30, 2012. 

ADDRESSES: Submit comments, 

identified by docket number [DOCKET 

NUMBER], by one of the following 

methods: 

1. Federal eRulemaking Portal: 

www.regulations.gov. Follow the on-line 

instructions. 

2. Email: steckel.andrew@epa.gov. 

3. Mail or deliver: Andrew Steckel 

(Air-4), U.S. Environmental Protection 

Agency Region IX, 75 Hawthorne Street, 

San Francisco, CA 94105–3901. 

Instructions: All comments will be 

included in the public docket without 

change and may be made available 

online at www.regulations.gov, 

including any personal information 

provided, unless the comment includes 

Confidential Business Information (CBI) 

or other information whose disclosure is 

restricted by statute. Information that 

you consider CBI or otherwise protected 

should be clearly identified as such and 

should not be submitted through 

www.regulations.gov or email. 

www.regulations.gov is an ‘‘anonymous 

access’’ system, and EPA will not know 

your identity or contact information 

unless you provide it in the body of 

your comment. If you send email 

directly to EPA, your email address will 

be automatically captured and included 

as part of the public comment. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider your comment. 

Docket: Generally, documents in the 

docket for this action are available 

electronically at www.regulations.gov 

and in hard copy at EPA Region IX, 75 

Hawthorne Street, San Francisco, 

California. While all documents in the 

docket are listed at 

www.regulations.gov, some information 

may be publicly available only at the 

hard copy location (e.g., copyrighted 

material, large maps), and some may not 

be publicly available in either location 

(e.g., CBI). To inspect the hard copy 

materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: Lily 

Wong, EPA Region IX, (415) 947–4114, 

wong.lily@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, ‘‘we,’’ ‘‘us’’ 

and ‘‘our’’ refer to EPA. 

Table of Contents 

I. The State’s Submittal 

A. What rule did the State submit? 

B. Are there other versions of this rule? 

C. What is the purpose of the submitted 

rule revision? 

II. EPA’s Evaluation and Action 

A. How is EPA evaluating the rule? 

B. Does the rule meet the evaluation 

criteria? 


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