18146 Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules 

rulemaking (REG–168745–03), which 

was published in the Federal Register 

relating to sections 162, and 263, 

providing guidance on the deduction 

and capitalization of expenditures 

related to tangible property. 

DATES: Effective Date: March 27, 2012 

and is applicable on or after December 

27, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Merrill Feldstein at (202) 622–4950, not 

a toll-free number. 

SUPPLEMENTARY INFORMATION: 

Background 

The notice of proposed rulemaking 

that is the subject of these corrections 

are under sections 162, 167, 168, and 

263 of the Internal Revenue Code. 

Need for Correction 

As published on December 27, 2011 

(76 FR 81128), the notice of proposed 

rulemaking (REG–168745–03), contains 

errors which may prove to be 

misleading and are in need of 

clarification. 

Correction of Publication 

Accordingly, the publication of the 

notice of proposed rulemaking (REG– 

168745–03), which were the subject of 

FR. Doc. 2011–32024, is corrected as 

follows: 

List of Subjects in 26 CFR part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Accordingly, 26 CFR part 1 is 

corrected my making the following 

correcting amendment: 

PART 1—INCOME TAXES 

Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Par. 2. Section 1.162–3 is corrected to 

read as follows: 

§ 1.162–3 [Corrected] 

§ 1.162–3 Materials and supplies. 

[The text of the proposed 

amendments to § 1.163–3 (a) through (j) 

is the same as the text of § 1.163–3T(a) 

through (j) published elsewhere in this 

issue of the Federal Register.] 

Guy R. Traynor, 

Federal Register Liaison, Publications and 

Regulations, Legal Processing Division, 

Associate Chief Counsel, Procedure and 

Administration. 

[FR Doc. 2012–7267 Filed 3–26–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–168745–03] 

RIN 1545–BE18 

Guidance Regarding Deduction and 

Capitalization of Expenditures Related 

to Tangible Property; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking; 

Correction. 

SUMMARY: This document contains 

corrections to a notice of proposed 

rulemaking (REG–168745–03), which 

was published in the Federal Register 

relating to sections 162, and 263 

providing guidance on the deduction 

and capitalization of expenditures 

related to tangible property. 

DATES: Effective Date: March 27, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Merrill D. Feldstein at (202) 622–4950 

(not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The notice of proposed rulemaking 

that is the subject of these corrections is 

under sections 162, 167, 168, and 263 of 

the Internal Revenue Code. 

Need for Correction 

As published on December 27, 2011 

(76 FR 81128), the notice of proposed 

rulemaking (REG–168745–03), contains 

errors which may prove to be 

misleading and are in need of 

clarification. 

Correction of Publication 

Accordingly, the publication of the 

notice of proposed rulemaking (REG– 

168745–03), which were the subject of 

FR. Doc. 2011–32024, is corrected as 

follows: 

1. On page 81128, column one, in the 

preamble under the caption DATES, lines 

one, two and three, the language 

‘‘Written and/or electronic comments 

and requests for a public hearing must 

be received by March 26,’’ is corrected 

to read ‘‘Written and/or electronic 

comments must be received by March 

26,’’. 

2. On page 81128, column one, line 6 

under the caption DATES, the language 

‘‘hearing scheduled for April 4, 2012 at’’ 

is corrected to read ‘‘hearing scheduled 

for May 9, 2012 at’’. 

3. On page 81128, column three, line 

two of the second paragraph under the 

caption ‘‘Comments and Public 

Hearing’’ the language ‘‘for April 4, 

2012, beginning at 10 a.m.’’ is corrected 

to read ‘‘for May 9, 2012, beginning at 

10 a.m.’’. 

4. On page 81128, column three, line 

three in the preamble under the caption 

‘‘Drafting Information’’, the language 

‘‘Katherine Reed, Office of the 

Associate’’ is corrected to read 

‘‘Kathleen Reed, Office of the 

Associate’’. 

5. On page 81130, column one, Par. 

11., item one is redesignated as item 3 

and the language ‘‘Revising paragraphs 

(a) through (l)(1); and’’ is corrected to 

read as ‘‘Revising paragraphs (a) through 

(h) and revising paragraphs (j) through 

(l)(1).’’ 

6. On page 81130, column one, under 

Par. 11. instructions, newly 

redesignated item one reads as 

‘‘Removing paragraphs (l), (l)(1), (l)(2) 

and (l)(3) and redesignating paragraphs 

(k), (k)(1), (k)(2), and (k)(3) as 

paragraphs (l), (l)(1), (l)(2) and (l)(3) 

respectively.’’ 

7. On page 81130, column one, under 

Par. 11. instructions, newly 

redesignated paragraph item 2 is 

corrected to read as ‘‘Redesignating 

paragraph (j) as paragraph (k) and 

redesignating paragraph (i) as paragraph 

(j), and adding a new paragraph (i).’’ 

8. On page 81130, column one, under 

Par. 11. instructions, newly 

redesignated item 4 reads as ‘‘Adding 

paragraph (m).’’ 

Guy R. Traynor, 

Federal Register Liaison, Publications and 

Regulations, Legal Processing Division, 

Associate Chief Counsel, Procedure and 

Administration. 

[FR Doc. 2012–7266 Filed 3–26–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 5 

[Docket No. TTB–2012–0001; Notice No. 

126] 

RIN 1513–AB91 

Standards of Identity for Pisco and 

Cognac 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: In this document, the Alcohol 

and Tobacco Tax and Trade Bureau 

proposes to amend its regulations 

setting forth the standards of identity for 

distilled spirits to include Pisco as a 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules 18147 

type of brandy that must be 

manufactured in accordance with the 

laws and regulations of either Peru or 

Chile, as appropriate, governing the 

manufacture of those products. This 

change will remove ‘‘Pisco brandy’’ 

from the list of examples of geographical 

designations in the distilled spirits 

standards of identity. This document 

also includes a technical correction to 

remove ‘‘Cognac’’ from the same list of 

examples. These changes will provide 

greater clarity in distilled spirits 

labeling. 

DATES: Comments must be received on 

or before May 29, 2012. 

ADDRESSES: You may send comments on 

this document to one of the following 

addresses: 

• http://www.regulations.gov (via the 

online comment form for this document 

as posted within Docket No. TTB–2012– 

0001 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; or 

• 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 document for specific instructions 

and requirements for submitting 

comments, and for information on how 

to request a public hearing. 

You may view copies of this 

document, selected supporting 

materials, and any comments we receive 

about this proposal at http:// 

www.regulations.gov within Docket No. 

TTB–2012–0001. A direct link to this 

docket is posted on the TTB Web site at 

http://www.ttb.gov/spirits/spiritsrulemaking.shtml under Notice No. 126. 

You also may view copies of this 

document, all related supporting 

materials, and any comments we receive 

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: 

Karen E. Welch, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW., Box 12, Washington, DC 20005; 

telephone 202–453–1039, ext. 046; 

email ITD@ttb.gov. 

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 (Secretary) 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. 

Section 105(e) of the FAA Act also 

generally requires bottlers and importers 

of alcohol beverages to obtain 

certificates of label approval prior to 

bottling or importing alcohol beverages 

for sale in interstate commerce. 

Regulations implementing those 

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). The 

Alcohol and Tobacco Tax and Trade 

Bureau (TTB) administers the FAA Act 

pursuant to section 111(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. 

Certificates of Label Approval 

TTB’s regulations prohibit the release 

of bottled distilled spirits from customs 

custody for consumption unless an 

approved Certificate of Label Approval 

(COLA) covering the product has been 

deposited with the appropriate Customs 

officer at the port of entry. See 27 CFR 

5.51. The TTB regulations also generally 

prohibit the bottling or removal from a 

plant of distilled spirits unless the 

proprietor possesses a COLA covering 

the labels on the bottle. See 27 CFR 

5.55. 

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. 

Brandy and Pisco 

Brandy is Class 4 in the standards of 

identity, where it is defined in § 5.22(d) 

as ‘‘an alcoholic distillate from the 

fermented juice, mash, or wine of fruit, 

or from the residue thereof, produced at 

less than 190° proof in such manner that 

the distillate possesses the taste, aroma, 

and characteristics generally attributed 

to the product, and bottled at not less 

than 80° proof.’’ ‘‘Pisco’’ is a term 

recognized by both the governments of 

Peru and Chile as a designation for a 

distilled spirits product made from 

grapes. However, ‘‘Pisco brandy’’ is not 

currently listed as a type of brandy in 

Class 4. Rather, it is provided in Class 

11, at § 5.22(k)(3), as an example of a 

geographical name that is not a name for 

a distinctive type of distilled spirits, and 

that has not become generic. 

International Agreements 

Pursuant to the United States–Peru 

Trade Promotion Agreement, the United 

States recognized Pisco Peru ́ as a 

distinctive product of Peru (Article 

2.12(2) of the Agreement). Accordingly, 

the United States agreed not to permit 

the sale of any product as Pisco Peru ́

unless it has been manufactured in Peru 

in accordance with the laws and 

regulations of Peru governing Pisco. 

In addition, pursuant to the United 

States–Chile Free Trade Agreement, the 

United States recognized Pisco Chileno 

(Chilean Pisco) as a distinctive product 

of Chile (Article 3.15(2) of the 

Agreement). Accordingly, the United 

States agreed not to permit the sale of 

any product as Pisco Chileno (Chilean 

Pisco) unless it has been manufactured 

in Chile in accordance with the laws 

and regulations of Chile governing the 

manufacture of Pisco. 

In like manner, Peru and Chile agreed, 

respectively, to recognize Bourbon 

Whiskey and Tennessee Whiskey 

(which is defined in both Agreements as 

a straight Bourbon Whiskey authorized 

to be produced only in the State of 

Tennessee), as distinctive products of 

the United States, and not to permit the 

sale of any product as Bourbon Whiskey 

or Tennessee Whiskey unless it has 

been manufactured in the United States 

in accordance with the laws and 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

18148 Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules 

regulations of the United States 

governing the manufacture of Bourbon 

Whiskey and Tennessee Whiskey. (TTB 

notes that there are alternative spellings 

for the same term—‘‘whisky’’ in the TTB 

regulations in 27 CFR part 5 and 

‘‘whiskey’’ in the Agreements with Peru 

and Chile.) 

Pisco Production 

‘‘The Oxford Companion to Wine’’ 

(Jancis Robinson, ed., Oxford University 

Press, 2d ed., 2001, p. 536) reports that 

Spanish colonists began producing 

aguardiente (grape spirits) in both Peru 

and Chile since the sixteenth century, in 

addition to describing the spirits 

produced in the area near the town of 

Pisco in Peru. Further, ‘‘The Oxford 

Companion to Wine’’ says ‘‘Pisco’’ is an 

aromatic brandy made in Peru, Chile, 

and Bolivia, mainly from Moscatel 

(muscat) grapes.’’ According to ‘‘Alexis 

Lichine’s Encyclopedia of Wines and 

Spirits’’ (Alexis Lichine, ed., 5th ed., 

Alfred A. Knopf, Inc., 1987), ‘‘Pisco 

brandy’’ is brandy distilled from Muscat 

wine in Peru, Chile, Argentina, and 

Bolivia. Peru and Chile have 

promulgated standards for the 

production of Pisco, which, under both 

countries’ respective regulations, is 

distilled from grapes that were grown in 

delimited geographical areas. 

TTB Regulatory Proposal 

After reviewing the standards of 

identity in 27 CFR part 5, TTB’s COLA 

database, and the laws and regulations 

of Peru and Chile, TTB has determined 

that amending § 5.22 is appropriate to 

clarify the status of Pisco under the 

standards of identity. 

TTB believes that Pisco generally 

meets the U.S. standard for brandy and 

should be classified as a type of brandy. 

TTB also believes that evidence suggests 

that the generally recognized 

geographical limits of the Piscoproducing areas do not extend beyond 

the boundaries of Chile and Peru. The 

wine and spirits authorities cited above 

indicate that Pisco production is not 

associated with any areas outside of 

South America. COLAs naming ‘‘Pisco’’ 

as the brand name or fanciful name of 

a distilled spirits product are almost 

exclusively for products from Chile and 

Peru. TTB could not locate any COLAs 

naming ‘‘Pisco’’ as the brand name or 

fanciful name for any products from 

Argentina, or from any other country in 

South America with the exception of 

Peru, Chile, and Bolivia. COLAs for 

products from Bolivia that name 

‘‘Pisco’’ as the brand name or fanciful 

name also use the term ‘‘Singani.’’ ‘‘The 

Oxford Companion to Wine’’ defines 

‘‘Singani’’ as an ‘‘aromatic grape-based 

spirit rather like pisco in that it is high 

in terpenes and made under a strictly 

controlled regime, principally from 

Muscat of Alexandria grapes’’ and a 

specialty of Bolivia (Robinson, p. 638). 

Bolivia maintains standards for Singani 

production in Bolivia, but does not have 

standards for Pisco production. 

Therefore, TTB proposes to amend the 

standard of identity in § 5.22(d) by 

adding Pisco as a type of brandy that is 

manufactured in Peru or Chile in 

compliance with the laws of the country 

of production regulating the 

manufacture of Pisco. The proposed 

amendment also recognizes the phrases 

‘‘Pisco Peru ́’’ (with or without the 

diacritic mark, i.e., ‘‘Pisco Peru ́’’ or 

‘‘Pisco Peru’’), ‘‘Pisco Chileno,’’ and 

‘‘Chilean Pisco,’’ as equivalent class and 

type names of the product, to reflect the 

provisions of the trade agreements. 

Further, if Pisco is recognized as a type 

of brandy, persons who distribute it in 

the United States will be entitled to 

label the product according to its type 

designation ‘‘Pisco’’ without the term 

‘‘brandy’’ on the label, in the same way 

that a product labeled with the type 

designation ‘‘Cognac’’ is not required to 

also bear the class designation 

‘‘brandy.’’ 

TTB notes that the Peruvian standard 

allows products designated as Pisco to 

have an alcohol content ranging from 38 

to 48 percent alcohol by volume, and 

the Chilean standard allows products 

designated as Pisco to have an alcohol 

content as low as 30 percent alcohol by 

volume. However, since the standard 

proposed in this document would 

identify Pisco as a type of brandy, and 

the U.S. standard requires that brandy 

must be bottled at not less than 40 

percent alcohol by volume, any Pisco 

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 Pisco’’ or as a 

distilled spirits specialty product 

bearing a statement of composition. 

Finally, TTB believes that it is 

appropriate to remove both ‘‘Pisco 

brandy’’ and ‘‘Cognac’’ from § 5.22(k)(3), 

where they are listed as examples of 

geographical names that are not names 

for distinctive types of distilled spirits, 

and that have not become generic. Pisco 

will appear in new § 5.22(d)(9), where it 

will be a type of brandy defined as grape 

brandy manufactured in Peru or Chile in 

accordance with the laws and 

regulations governing the manufacture 

of Pisco of the country of manufacture. 

Cognac currently appears in 

§ 5.22(d)(2), where it is a type of brandy 

defined as ‘‘grape brandy distilled in the 

Cognac region of France, which is 

entitled to be so designated by the laws 

and regulations of the French 

Government.’’ The inclusion of 

‘‘Cognac’’ in the list of examples of 

geographical names that are not names 

for distinctive types of distilled spirits, 

and that have not become generic, in 

§ 5.22(k)(3) is duplicative and 

confusing. Accordingly, TTB proposes 

to remove the reference to Cognac in 

§ 5.22(k)(3) as a technical correction to 

the regulations. 

Effect on Currently Approved Labels 

If finalized, this change to the 

regulations would revoke by operation 

of regulation any COLAs that specify 

‘‘Pisco’’ as the class and type or brand 

name or fanciful name of distilled 

spirits products that are not products of 

Peru or Chile. TTB has searched its 

COLA database, and believes that this 

rulemaking will affect only a small 

number of labels. 

Public Participation 

Comments Invited 

We invite comments from interested 

members of the public on this proposed 

rulemaking. 

Submitting Comments 

Please submit your comments by the 

closing date shown above in this notice. 

You may submit comments in one of the 

following three ways: 

• Federal e-Rulemaking Portal: You 

may send comments via the online 

comment form associated with this 

notice in Docket No. TTB–2012–0001 on 

‘‘Regulations.gov,’’ the Federal erulemaking portal, at http:// 

www.regulations.gov. A direct link to 

that docket is available under Notice 

No. 126 on the TTB Web site at 

http://www.ttb.gov/spirits/spiritsrulemaking.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 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. 

Your comments must reference Notice 

No. 126 and include your name and 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Proposed Rules 18149 

mailing address. Your comments also 

must be made in English, be legible, and 

be written in language acceptable for 

public disclosure. TTB does not accept 

anonymous comments, does not 

acknowledge receipt of comments, and 

considers all comments as originals. 

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 enter the 

entity’s name in the ‘‘Organization’’ 

blank of the comment form. If you 

comment via 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 confidential or 

inappropriate for public disclosure. 

Public Disclosure 

On the Federal e-rulemaking portal, 

Regulations.gov, TTB will post, and the 

public may view, copies of this notice 

and any electronic or mailed comments 

we receive about it. A direct link to the 

Regulations.gov docket containing this 

notice and the posted comments 

received on it is available on the TTB 

Web site at http://www.ttb.gov/spirits/ 

spirits-rulemaking.shtml under Notice 

No. 126. You may also reach the docket 

containing this notice and its related 

comments through the Regulations.gov 

search page at http:// 

www.regulations.gov. 

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. 

TTB may omit voluminous attachments 

or material that the Bureau considers 

unsuitable for posting. 

You and other members of the public 

may view copies of this notice and any 

electronic or mailed comments TTB 

receives on it 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 x 11-inch page. Contact the TTB 

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 Analysis and Notices 

Executive Order 12866 

It has been determined that this 

proposed rule is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. 

Regulatory Flexibility Act 

Pursuant to the requirements of the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6), TTB certifies that this notice 

of proposed rulemaking will not have a 

significant economic impact on a 

substantial number of small entities. 

The propose rule would clarify the 

statue of Pisco under the standards of 

identity for distilled spirits and, if 

promulgated, will not impose, or 

otherwise cause, a significant increase 

in reporting, recordkeeping, or other 

compliance burdens on a substantial 

number of small entities. Accordingly, a 

regulatory flexibility analysis is not 

required. 

Drafting Information 

Karen Welch of the Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, drafted this 

notice. 

List of Subjects in 27 CFR Part 5 

Advertising, Customs duties and 

inspection, Imports, Labeling, Liquors, 

Packaging and containers, Reporting 

and recordkeeping requirements, Trade 

practices. 

Amendment to the Regulations 

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: 

a. In paragraph (d) introductory text, 

removing the words ‘‘paragraph (d)(1) 

through (8)’’ and adding, in their place, 

the words ‘‘paragraphs (d)(1) through 

(9)’’; 

b. In paragraph (k)(3), by removing the 

words ‘‘Cognac,’’ and ‘‘Pisco brandy,’’; 

and 

c. Adding new paragraph (d)(9) to 

read as follows: 

§ 5.22 The standards of identity. 

* * * * * 

(d) * * * 

(9) ‘‘Pisco’’ is grape brandy 

manufactured in Peru or Chile in 

accordance with the laws and 

regulations governing the manufacture 

of Pisco of the country of manufacture. 

(i) ‘‘Pisco Peru ́’’ (or ‘‘Pisco Peru’’) is 

Pisco manufactured in Peru in 

accordance with the laws and 

regulations of Peru governing the 

manufacture of Pisco. 

(ii) ‘‘Pisco Chileno’’ or ‘‘Chilean 

Pisco’’ is Pisco manufactured in Chile in 

accordance with the laws and 

regulations of Chile governing the 

manufacture of Pisco. 

* * * * * 

Signed: February 3, 2012. 

John J. Manfreda, 

Administrator. 

Approved: February 27, 2012. 

Timothy E. Skud, 

Deputy Assistant Secretary, Tax, Trade, and 

Tariff Policy. 

[FR Doc. 2012–7256 Filed 3–26–12; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE INTERIOR 

Office of Surface Mining Reclamation 

and Enforcement 

30 CFR Part 926 

[SATS No. MT–033–FOR; Docket ID OSM– 

2011–0012] 

Montana Regulatory Program 

AGENCY: Office of Surface Mining 

Reclamation and Enforcement, Interior. 

ACTION: Proposed rule; reopening and 

extension of public comment period and 

opportunity for public hearing on 

proposed amendment. 

SUMMARY: We are announcing receipt of 

Montana’s response to the Office of 

Surface Mining Reclamation and 

Enforcement’s (OSM) November 22, 

2011, letter pertaining to a previously 

proposed amendment to the Montana 

regulatory program (hereinafter, the 

‘‘Montana program’’) under the Surface 

Mining Control and Reclamation Act of 

1977 (SMCRA or the Act). Montana 

proposes changes to the Montana Strip 

and Underground Mine Reclamation 

Act (MSUMRA) that pertain to coal 

prospecting. Montana intends to revise 

its program to comply with changes 

made in the 2011 Montana Legislature 

as a result of the passage of Senate Bill 

286. 

This document gives the times and 

locations that the Montana program and 

proposed amendment to that program 

are available for your inspection, the 

comment period during which you may 

submit written comments on the 

amendment, and the procedures that we 

mstockstill on DSK4VPTVN1PROD with PROPOSALS