Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 3087 

(ii) * * * Any health and life 

insurance costs during the time an 

employee is not earning creditable 

wages. 

(A) * * * Any health and life 

insurance costs during the time an 

employee is not earning creditable 

wages. 

(B) Any pension benefits that were 

not based on associated creditable 

wages. * * * 

* * * * * 

10. Section 303.17 is amended as 

follows: 

A. Revise the section heading to read 

as set forth below. 

B. Remove ‘‘payroll, production 

records’’ from paragraph (b)(6) and add 

‘‘payroll, including time cards, 

production records’’ in its place. 

C. Remove the last sentence of 

paragraph (c) and add two sentences in 

its place as set forth below. 

§ 303.17 Application for annual dutyrefunds. 

* * * * * 

(c) * * * It is the responsibility of 

each program producer to make the 

appropriate data available to the 

Departments’ officials for the calendar 

year for which the annual verification is 

being performed and no further data, 

from the calendar year for which the 

audit is being completed, will be 

considered for benefits at any time after 

the audit has been completed. In the 

event of discrepancies between the 

application and substantiating data 

before the audit is complete, the 

Secretaries shall determine which data 

will be used in the calculation of the 

duty refund and allocations. 

* * * * * 

§ 303.19 [Amended] 

11. Section 303.19 is amended as 

follows: 

A. Remove ‘‘creditable wages paid 

during’’ from the second sentence in 

paragraph (a)(1) and add ‘‘creditable 

wages, determined from the wages as 

reported on the employer’s first two 

quarterly federal tax returns (941–SS), 

paid during’’ in its place. 

B. Remove ‘‘duty refund will remain 

the same.’’ from the fifth sentence in 

paragraph (a)(1) and add ‘‘duty refund 

will be based on verified creditable 

wages, duty-free shipments into the 

customs territory of the United States, 

creditable health insurance, life 

insurance and pension benefits and the 

duty differential, if watch tariffs have 

been reduced during the calendar year.’’

in its place. 

12. Section 303.20 is amended as 

follows: 

A. Revise the section heading to read 

as set forth below. 

B. Revise paragraph (b) to read as 

follows. 

§ 303.20 Duty refund calculations and 

miscellaneous provisions. 

* * * * * 

(b) Calculation of the value of the 

mid-year production incentive 

certificates. (1) The value of each 

producer’s certificate shall equal the 

producer’s average creditable wage per 

unit shipped during the first six months 

of the calendar year multiplied by the 

sum of: 

(i) The number of units shipped up to 

300,000 units times a factor of 90%; 

plus 

(ii) Incremental units shipped up to 

450,000 units times a factor of 85%; 

plus 

(iii) Incremental units shipped up to 

600,000 units times a factor of 80%; 

plus 

(iv) Incremental units shipped up to 

750,000 units times a factor of 75%. 

(2) Calculation of the value of the 

annual production incentive 

certificates. The value of each 

producer’s certificate shall equal the 

producer’s average creditable benefit per 

unit based on creditable wages, health 

insurance, life insurance and pension 

benefits plus any duty differential, if 

applicable, averaged from the amount of 

duty free units shipped during the 

calendar year multiplied by the sum of 

the following to obtain the total verified 

amount of the annual duty-refund per 

company. This amount would then be 

adjusted by deducting the amount of the 

mid-year duty-refund already issued. 

(i) The number of units shipped up to 

300,000 units times a factor of 90%; 

plus 

(ii) Incremental units shipped up to 

450,000 units times a factor of 85%; 

plus 

(iii) Incremental units shipped up to 

600,000 units times a factor of 80%; 

plus 

(iv) Incremental units shipped up to 

750,000 units times a factor of 75%. 

(3) The Departments may make 

adjustments for these data in the 

manner set forth in § 303.17(c). 

* * * * * 

§ 303.21 [Amended] 

13. Section 303.21 is amended by 

removing ‘‘post office address’’ from the 

first sentence of paragraph (b) and 

adding ‘‘address’’ in its place. 

Dated: January 18, 2007. 

David Spooner, 

Assistant Secretary for Import 

Administration, Department of Commerce. 

Dated: January 9, 2007. 

Nikolao Pula, 

Director for Insular Affairs, Department of 

the Interior. 

[FR Doc. 07–294 Filed 1–23–07; 8:45 am] 

BILLING CODE 3510–DS–P, 4310–93–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–125632–06] 

RIN 1545–BF83 

Corporate Reorganizations; 

Distributions Under Sections 

368(a)(1)(D) and 354(b)(1)(B); 

Correction Notice 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations; correction notice. 

SUMMARY: This document contains 

corrections to notice of proposed 

rulemaking by cross-reference to 

temporary regulations that was 

published in the Federal Register on 

Tuesday, December 19, 2006 (71 FR 

75898) providing guidance regarding the 

qualification of certain transactions as 

reorganizations described in section 

368(a)(1)(D) where no stock and/or 

securities of the acquiring corporation 

are issued and distributed in the 

transaction. 

FOR FURTHER INFORMATION CONTACT: 

Bruce A. Decker at (202) 622–7550 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The notice of proposed rulemaking by 

cross-reference to temporary regulations 

(REG–125632–06) that is the subject of 

these corrections are under sections 368 

and 354 of the Internal Revenue Code. 

Need for Correction 

As published, notice of proposed 

rulemaking by cross-reference to 

temporary regulations (REG–125632–06) 

contains errors that may prove to be 

misleading and are in need of 

clarification. 

Correction of Publication 

Accordingly, the notice of proposed 

rulemaking by cross-reference to 


rmajette on PROD1PC67 with PROPOSALS
3088 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 

temporary regulations (REG–125632–06) 

that was the subject of FR Doc. E6–

21572, is corrected as follows: 

On page 75898, column 3, in the 

preamble, under the caption, line 9, the 

language ‘‘acquiring corporation is 

issued and’’ is corrected to read 

‘‘acquiring corporation are issued and.’’

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Office of Associate 

Chief Counsel (Procedure and 

Administration). 

[FR Doc. E7–860 Filed 1–23–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Notice No. 71] 

RIN 1513–AB27 

Proposed Establishment of the Paso 

Robles Westside Viticultural Area 

(2006R–087P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau proposes to establish 

the 179,622-acre ‘‘Paso Robles 

Westside’’ viticultural area in San Luis 

Obispo County, California. The 

proposed viticultural area is totally 

within the existing Paso Robles and 

Central Coast viticultural areas. We 

designate viticultural areas to allow 

vintners to better describe the origin of 

their wines and to allow consumers to 

better identify wines they may 

purchase. We invite comments on this 

proposed addition to our regulations. 

DATES: We must receive written 

comments on or before March 26, 2007. 

ADDRESSES: You may send comments to 

any of the following addresses: 

• Director, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, Attn: Notice No. 71, P.O. 

Box 14412, Washington, DC 20044–

4412. 

• 202–927–8525 (facsimile). 

• nprm@ttb.gov (e-mail). 

• http://www.ttb.gov/wine/ 

wine_rulemaking.shtml. An online 

comment form is posted with this notice 

on our Web site. 

• http://www.regulations.gov (Federal 

e-rulemaking portal; follow instructions 

for submitting comments). 

You may view copies of this notice, 

the petition, the appropriate maps, and 

any comments we receive about this 

proposal by appointment at the TTB 

Information Resource Center, 1310 G 

Street, NW., Washington, DC 20220. To 

make an appointment, call 202–927–

2400. You may also access copies of the 

notice and comments online at 

http://www.ttb.gov/wine/ 

wine_rulemaking.shtml. 

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. 

FOR FURTHER INFORMATION CONTACT: N. 

A. Sutton, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 925 Lakeville St., No. 

158, Petaluma, CA 94952; telephone 

415–271–1254. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (the FAA Act, 27 

U.S.C. 201 et seq.) requires that alcohol 

beverage labels provide consumers with 

adequate information regarding product 

identity and prohibits the use of 

misleading information on those labels. 

The FAA Act also authorizes the 

Secretary of the Treasury to issue 

regulations to carry out its provisions. 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) administers these 

regulations. 

Part 4 of the TTB regulations (27 CFR 

part 4) allows the establishment of 

definitive viticultural areas and the use 

of their names as appellations of origin 

on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) contains the 

list of approved viticultural areas. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region 

distinguishable by geographical 

features, the boundaries of which have 

been recognized and defined in part 9 

of the regulations. These designations 

allow vintners and consumers to 

attribute a given quality, reputation, or 

other characteristic of a wine made from 

grapes grown in an area to its 

geographic origin. The establishment of 

viticultural areas allows vintners to 

describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

purchase. Establishment of a viticultural 

area is neither an approval nor an 

endorsement by TTB of the wine 

produced in that area. 

Requirements 

Section 4.25(e)(2) of the TTB 

regulations outlines the procedure for 

proposing an American viticultural area 

and provides that any interested party 

may petition TTB to establish a grapegrowing region as a viticultural area. 

Section 9.3(b) of the TTB regulations 

requires the petition to include—

• Evidence that the proposed 

viticultural area is locally and/or 

nationally known by the name specified 

in the petition; 

• Historical or current evidence that 

supports setting the boundary of the 

proposed viticultural area as the 

petition specifies; 

• Evidence relating to the geographic 

features, such as climate, soils, 

elevation, and physical features, that 

distinguish the proposed viticultural 

area from surrounding areas; 

• A description of the specific 

boundary of the proposed viticultural 

area, based on features found on United 

States Geological Survey (USGS) maps; 

and 

• A copy of the appropriate USGS 

map(s) with the proposed viticultural 

area’s boundary prominently marked. 

Paso Robles Westside Petition 

TTB has received a petition from 

Holland & Knight LLP, San Francisco, 

California, proposing the establishment 

of the ‘‘Paso Robles Westside’’ American 

viticultural area in northern San Luis 

Obispo County, California. The petition 

was filed on behalf of 21 vintners and 

grape growers with interests in the 

proposed viticultural area, which is 

located approximately 20 miles east of 

the Pacific Ocean and 180 miles south 

of San Francisco. There are, according 

to the petitioner, approximately 2,425 

acres within the proposed viticultural 

area currently dedicated to commercial 

vineyards. 

Relationship to Existing Viticultural 

Areas 

The proposed 179,622-acre Paso 

Robles Westside viticultural area is 

entirely within the existing 609,564-acre 

Paso Robles viticultural area (27 CFR 

9.84), which in turn is entirely within 

the existing, multi-county Central Coast 

viticultural area (27 CFR 9.75). The 

Bureau of Alcohol, Tobacco and 

Firearms (ATF), TTB’s predecessor 

agency, established the Paso Robles 

viticultural area in 1983 (see T.D. ATF–

148, 48 FR 45239, October 4, 1983). In 

1996, ATF expanded the Paso Robles 

viticultural area along its western 

boundary, increasing the viticultural 

area’s size from approximately 557,000 

acres to 609,564 acres (see T.D. ATF–

377, 61 FR 29952, June 13, 1996). 


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