Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations 41891 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Paragraph 1. The authority citation 

for part 301 is amended by adding an 

entry in numerical order to read in part 

as follows: 

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

Section 301.6039E–1 also issued under 26 

U.S.C. 6039E. 

■ Par. 2. Section 301.6039E–1 is added 

to read as follows: 

§ 301.6039E–1 Information reporting by 

passport applicants. 

(a) In general. Every individual who 

applies for a U.S. passport or the 

renewal of a passport (passport 

applicant), other than a passport for use 

in diplomatic, military, or other official 

U.S. government business, shall include 

with his or her passport application the 

information described in paragraph 

(b)(1) of this section in the time and 

manner described in paragraph (b)(2) of 

this section. 

(b) Required information—(1) In 

general. The information required under 

paragraph (a) of this section shall 

include the following information: 

(i) The passport applicant’s full name 

and, if applicable, previous name; 

(ii) The passport applicant’s 

permanent address and, if different, 

mailing address; 

(iii) The passport applicant’s taxpayer 

identifying number (TIN), if such a 

number has been issued to the passport 

applicant. A TIN means the individual’s 

social security number (SSN) issued by 

the Social Security Administration. A 

passport applicant who does not have 

an SSN must enter zeros in the 

appropriate space on the passport 

application; and 

(iv) The passport applicant’s date of 

birth. 

(2) Time and manner for furnishing 

information. A passport applicant must 

provide the information required by this 

section with his or her passport 

application, whether by personal 

appearance or mail, to the Department 

of State (including United States 

Embassies and Consular posts abroad). 

(c) Penalties—(1) In general. If the 

information required by paragraph (b)(1) 

of this section is incomplete or 

incorrect, or the information is not filed 

in the time and manner described in 

paragraph (b)(2) of this section, then the 

passport applicant may be subject to a 

penalty equal to $500 per application. 

Before assessing a penalty under this 

section, the IRS will provide to the 

passport applicant written notice of the 

potential assessment of the $500 

penalty, requesting the information 

being sought, and offering the applicant 

an opportunity to explain why the 

information was not provided with the 

passport application. A passport 

applicant has 60 days from the date of 

the notice of the potential assessment of 

the penalty (90 days from such date if 

the notice is addressed to an applicant 

outside the United States) to respond to 

the notice. If the passport applicant 

demonstrates to the satisfaction of the 

Commissioner (or the Commissioner’s 

delegate) that the failure is due to 

reasonable cause and not due to willful 

neglect, after considering all the 

surrounding circumstances, then the 

IRS will not assess the penalty. 

(2) Example. The following example 

illustrates the provisions of paragraph 

(c) of this section. 

Example. C, a citizen of the United States, 

makes an error in supplying information on 

his passport application. Based on the nature 

of the error and C’s timely response to correct 

the error after being contacted by the IRS, the 

Commissioner concludes that the mistake is 

due to reasonable cause and not due to 

willful neglect. Accordingly, no penalty is 

assessed. 

(d) Effective/applicability date. This 

section applies to passport applications 

submitted after July 18, 2014. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: June 26, 2014. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2014–16944 Filed 7–17–14; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2013–0008; T.D. TTB–120; 

Ref: Notice No. 139] 

RIN 1513–AC02 

Establishment of the Upper Hiwassee 

Highlands Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

approximately 690-square mile ‘‘Upper 

Hiwassee Highlands’’ viticultural area 

in Cherokee and Clay Counties, North 

Carolina, and Towns, Union, and 

Fannin Counties, Georgia. The 

viticultural area does not lie within or 

contain any other established 

viticultural area. TTB designates 

viticultural areas to allow vintners to 

better describe the origin of their wines 

and to allow consumers to better 

identify wines they may purchase. 

DATES: This final rule is effective August 

18, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Karen A. Thornton, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW., Box 12, Washington, DC 20005; 

phone 202–453–1039, ext. 175. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

provides that these regulations should, 

among other things, prohibit consumer 

deception and the use of misleading 

statements on labels and ensure that 

labels 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 December 10, 2013, to the TTB 

Administrator to perform the functions 

and duties in the administration and 

enforcement of this law. 

Part 4 of the TTB regulations (27 CFR 

part 4) authorizes 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) sets forth 

standards for the preparation and 

submission to TTB of petitions for the 

establishment or modification of 

American viticultural areas (AVAs) and 

lists the approved AVAs. 

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 having 

distinguishing features as described in 

part 9 of the regulations and a name and 

a delineated boundary as established 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 

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41892 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations 

to the wine’s geographic origin. The 

establishment of AVAs allows vintners 

to describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

purchase. Establishment of an AVA 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 AVA and provides that 

any interested party may petition TTB 

to establish a grape-growing region as an 

AVA. Section 9.12 of the TTB 

regulations (27 CFR 9.12) prescribes the 

standards for petitions for the 

establishment of AVAs. Petitions to 

establish an AVA must include the 

following: 

• Evidence that the area within the 

proposed AVA boundary is nationally 

or locally known by the AVA name 

specified in the petition; 

• An explanation of the basis for 

defining the boundary of the proposed 

AVA; 

• A narrative description of the 

features of the proposed AVA that affect 

viticulture, such as climate, geology, 

soils, physical features, and elevation, 

that make the proposed AVA distinctive 

and distinguish it from adjacent areas 

outside the proposed AVA boundary; 

• The appropriate United States 

Geological Survey (USGS) map(s) 

showing the location of the proposed 

AVA, with the boundary of the 

proposed AVA clearly drawn thereon; 

and 

• A detailed narrative description of 

the proposed AVA boundary based on 

USGS map markings. 

Upper Hiwassee Highlands Petition 

TTB received a petition from Eric 

Carlson, owner of Calaboose Cellars, on 

behalf of himself and members of the 

Vineyard and Winery Operators of the 

Upper Hiwassee River Basin group, 

proposing the establishment of the 

approximately 690-square mile ‘‘Upper 

Hiwassee Highlands’’ AVA. The 

proposed AVA is located in the 

southern Appalachian Mountains 

within the upper Hiwassee River basin 

in all or portions of Cherokee and Clay 

Counties in southwestern North 

Carolina and Towns, Union, and Fannin 

Counties in northwestern Georgia. The 

proposed AVA contains 26 

commercially producing vineyards, 

growing approximately 54 acres of 

French–American hybrids, American 

grape varieties, and Vitis vinifera. 

According to the petition, present 

vineyard operators estimate they will 

expand their plantings by an additional 

75.5 acres within the next 5 years. Five 

wineries were operating within the 

proposed AVA at the time the petition 

was submitted. According to the 

petition, the distinguishing features of 

the proposed Upper Hiwassee 

Highlands AVA include topography, 

temperature, and soils. 

Notice of Proposed Rulemaking and 

Comments Received 

TTB published Notice No. 139 in the 

Federal Register on July 12, 2013 (78 FR 

41891), proposing to establish the Upper 

Hiwassee Highlands AVA. In the 

document, TTB summarized the 

evidence from the petition regarding the 

name, boundary, and distinguishing 

features for the proposed AVA. The 

distinguishing features of the proposed 

AVA include topography, temperature, 

and soils. The document also compared 

the distinguishing features of the 

proposed AVA to the surrounding areas. 

For a description of the evidence 

relating to the name, boundary, and 

distinguishing features of the proposed 

AVA, and for a comparison of the 

distinguishing features of the proposed 

AVA to the surrounding areas, see 

Notice No. 139. 

In Notice No. 139, TTB solicited 

comments on the accuracy of the name, 

boundary, climatic, and other required 

information submitted in support of the 

petition. The comment period closed on 

September 10, 2013. 

In response to Notice No. 139, TTB 

received a total of 37 comments, all of 

which supported the establishment of 

the Upper Hiwassee Highlands AVA. 

Among the commenters were the Clay 

County (NC) Chamber of Commerce; the 

Clay County Travel and Tourism Board 

of Directors; the Clay County Economic 

Development Commission; the Cherokee 

County (NC) Director of Economic 

Development; the Cherokee County 

Board of Commissioners; the Cherokee 

County Tourism Development 

Authority; the Cherokee County 

Chamber of Commerce; the Agricultural 

Extension Agent for Cherokee County; 

the Director of Economic Development 

for Tri-County Community College in 

Murphy, North Carolina; Southern 

Appalachian Family Farms, which 

promotes local and alternative 

sustainable markets for agricultural 

products; the Director of Fermentation 

Sciences at Appalachian State 

University; the Georgia Department of 

Agriculture; the Tourism Division of the 

Georgia Department of Economic 

Development; the Towns County (GA) 

Chamber of Commerce; a Commissioner 

for Union County (GA); and the 

Blairsville–Union County Chamber of 

Commerce. After the comment period 

closed, TTB received a comment by 

mail from Senator Johnny Isakson of 

Georgia, expressing support for the 

proposed AVA. The Senator’s comment 

was added to the rulemaking docket. 

TTB received no comments opposing 

the Upper Hiwassee Highlands AVA, as 

proposed. 

TTB Determination 

After careful review of the petition 

and the comments received in response 

to Notice No. 139, TTB finds that the 

evidence provided by the petitioner 

supports the establishment of the 

approximately 690-square mile Upper 

Hiwassee Highlands AVA. Accordingly, 

under the authority of the FAA Act, 

section 1111(d) of the Homeland 

Security Act of 2002, and part 4 of the 

TTB regulations, TTB establishes the 

‘‘Upper Hiwassee Highlands’’ AVA in 

Cherokee and Clay Counties, North 

Carolina, and Towns, Union, and 

Fannin Counties, Georgia, effective 30 

days from the publication date of this 

document. 

Boundary Description 

See the narrative description of the 

boundary of the AVA in the regulatory 

text published at the end of this final 

rule. 

Maps 

The petitioner provided the required 

maps, and they are listed below in the 

regulatory text. 

Impact on Current Wine Labels 

Part 4 of the TTB regulations prohibits 

any label reference on a wine that 

indicates or implies an origin other than 

the wine’s true place of origin. With the 

establishment of this AVA, its name, 

‘‘Upper Hiwassee Highlands,’’ will be 

recognized as a name of viticultural 

significance under § 4.39(i)(3) of the 

TTB regulations (27 CFR 4.39(i)(3)). The 

text of the regulation clarifies this point. 

Once this final rule becomes effective, 

wine bottlers using the name ‘‘Upper 

Hiwassee Highlands’’ in a brand name, 

including a trademark, or in another 

label reference as to the origin of the 

wine, will have to ensure that the 

product is eligible to use the AVA name 

as an appellation of origin. 

The establishment of the Upper 

Hiwassee Highlands AVA will not affect 

any existing AVA. The establishment of 

the Upper Hiwassee Highlands AVA 

will allow vintners to use ‘‘Upper 

Hiwassee Highlands’’ as an appellation 

of origin for wines made from grapes 

grown within the Upper Hiwassee 

Highlands AVA, if the wines meet the 

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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations 41893 

eligibility requirements for the 

appellation. 

For a wine to be labeled with an AVA 

name or with a brand name that 

includes an AVA name, at least 85 

percent of the wine must be derived 

from grapes grown within the area 

represented by that name, and the wine 

must meet the other conditions listed in 

§ 4.25(e)(3) of the TTB regulations (27 

CFR 4.25(e)(3)). If the wine is not 

eligible for labeling with an AVA name 

and that name appears in the brand 

name, then the label is not in 

compliance, and the bottler must change 

the brand name and obtain approval of 

a new label. Similarly, if the AVA name 

appears in another reference on the 

label in a misleading manner, the bottler 

would have to obtain approval of a new 

label. 

Different rules apply if a wine has a 

brand name containing an AVA name 

that was used as a brand name on a 

label approved before July 7, 1986. See 

§ 4.39(i)(2) of the TTB regulations (27 

CFR 4.39(i)(2)) for details. 

Regulatory Flexibility Act 

TTB certifies that this regulation will 

not have a significant economic impact 

on a substantial number of small 

entities. The regulation imposes no new 

reporting, recordkeeping, or other 

administrative requirement. Any benefit 

derived from the use of an AVA name 

would be the result of a proprietor’s 

efforts and consumer acceptance of 

wines from that area. Therefore, no 

regulatory flexibility analysis is 

required. 

Executive Order 12866 

It has been determined that this rule 

is not a significant regulatory action as 

defined by Executive Order 12866 of 

September 30, 1993. Therefore, no 

regulatory assessment is required. 

Drafting Information 

Karen A. Thornton of the Regulations 

and Rulings Division drafted this final 

rule. 

List of Subjects in 27 CFR Part 9 

Wine. 

The Regulatory Amendment 

For the reasons discussed in the 

preamble, TTB amends title 27, chapter 

I, part 9, Code of Federal Regulations, as 

follows: 

PART 9—AMERICAN VITICULTURAL 

AREAS 

■ 1. The authority citation for part 9 

continues to read as follows: 

Authority: 27 U.S.C. 205. 

Subpart C—Approved American 

Viticultural Areas 

■ 2. Subpart C is amended by adding 

§ 9.234 to read as follows: 

§ 9.234 Upper Hiwassee Highlands. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘Upper 

Hiwassee Highlands’’. For purposes of 

part 4 of this chapter, ‘‘Upper Hiwassee 

Highlands’’ is a term of viticultural 

significance. 

(b) Approved maps. The 24 United 

States Geological Survey (USGS) 

1:24,000 scale topographic maps used to 

determine the boundary of the Upper 

Hiwassee Highlands viticultural area are 

titled: 

(1) Unaka, NC/TN, 1957; photorevised 

1978; 

(2) McDaniel Bald, NC/TN, 1957; 

photoinspected 1976; 

(3) Marble, NC, 1938; photorevised 

1990; 

(4) Andrews, NC, 1938; photorevised 

1990; 

(5) Topton, NC, 1957; photoinspected 

1976; 

(6) Peachtree, NC, 1937; photorevised 

1973; 

(7) Hayesville, NC, 1966; photorevised 

1978; photoinspected 1987; 

(8) Shooting Creek, NC, 1957; 

photorevised 1990; 

(9) Rainbow Springs, NC, 1957; 

photorevised 1978; 

(10) Macedonia, GA/NC, 1988; 

(11) Hightower Bald, GA/NC, 1988; 

(12) Tray Mountain, GA, 1957; 

photorevised 1985; 

(13) Jacks Gap, GA, 1988; 

(14) Hiawassee, GA/NC, 1988; 

(15) Blairsville, GA/NC, 1988; 

(16) Cowrock, GA, 1988; 

(17) Coosa Bald, GA, 1988; 

(18) Neels Gap, GA, 1988; 

(19) Mulky Gap, GA, 1965; 

(20) Wilscot, GA, 1947; 

(21) Nottely Dam, GA/NC, 1988; 

(22) Culberson, NC/GA, 1988; 

(23) Persimmon Creek, NC, 1957; 

photorevised 1978; and 

(24) Isabella, TN/NC, 1957; 

photorevised 1978. 

(c) Boundary. The Upper Hiwassee 

Highlands viticultural area is located in 

Cherokee and Clay Counties, North 

Carolina, and Towns, Union, and 

Fannin Counties, Georgia. The boundary 

of the Upper Hiwassee Highlands 

viticultural area is as described below: 

(1) The beginning point is in Cherokee 

County, North Carolina, on the Unaka 

map at the intersection of the 

northwestern end of the Hiwassee Dam 

and an unnamed light-duty road known 

locally as Hiwassee Dam Access Road. 

(2) From the beginning point, proceed 

northwesterly on Hiwassee Dam Access 

Road approximately 4.2 miles to the 

road’s intersection with an unnamed 

light-duty road known locally as Joe 

Brown Highway; then 

(3) Proceed northeasterly on Joe 

Brown Highway approximately 1.4 

miles to the highway’s intersection with 

an unnamed light-duty road known 

locally as Burrell Mountain Road; then 

(4) Proceed east-northeasterly along a 

straight line (drawn from the 

intersection of Joe Brown Highway and 

Burrell Mountain Road to the peak of 

Bird Knob) to the point where the line 

intersects the 2,400-foot elevation line 

west of Bird Knob; then 

(5) Proceed initially southerly and 

then easterly along the meandering 

2,400-foot elevation line and continue to 

follow the elevation line in an overall 

clockwise direction through Cherokee 

and Clay Counties, North Carolina, and 

then Towns and Union Counties, 

Georgia, crossing over as necessary the 

McDaniel Bald, Marble, Andrews, 

Topton, Peachtree, Hayesville, Shooting 

Creek, Rainbow Springs, Macedonia, 

Hightower Bald, Tray Mountain, Jacks 

Gap, Hiwassee, Blairsville, Cowrock, 

Coosa Bald, Neels Gap, and Mulky Gap 

maps and ending on the Wilscot map, 

at the intersection of the 2,400-foot 

elevation line with the Union–Fannin 

County boundary line at Skeenah Gap; 

then 

(6) Proceed northerly along the 

meandering Union–Fannin County 

boundary line, crossing over the Mulky 

Gap and Nottely Dam maps and onto the 

Culberson map, to the summit of High 

Top Mountain; then 

(7) Proceed northwesterly in a straight 

line approximately one mile to the 

intersection of two unnamed light-duty 

roads known locally as Cutcane Road 

and Mt. Herman Road, near Mt. Herman 

Church; then 

(8) Proceed northwesterly on Mt. 

Herman Road approximately one mile to 

the road’s intersection with State Spur 

60 (Murphy Highway); then 

(9) Proceed southwesterly on State 

Spur 60 (Murphy Highway) 

approximately 2 miles to the road’s 

intersection with an unnamed light-duty 

road known locally as Knollwood Road; 

then 

(10) Proceed northwesterly in a 

straight line approximately 1.75 miles to 

the summit of Watson Mountain; then 

(11) Proceed northeasterly in a 

straight line approximately 2.15 miles, 

crossing onto the Persimmon Creek 

map, to the line’s intersection with the 

wagon and jeep track at the 

southernmost summit of Vance 

Mountain in Cherokee County, North 

Carolina; then 

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41894 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations 

(12) Proceed north-northwesterly 

along the wagon and jeep track 

approximately 0.8 mile to the track’s 

intersection with a marked foot trail 

near the 2,200-foot elevation line on the 

northern spur of Vance Mountain; then 

(13) Proceed north-northwesterly 

along the foot trail approximately 0.5 

mile to the trail’s intersection with an 

unnamed road known locally as Wallace 

Road, and then continue northnorthwesterly along Wallace Road 

approximately 0.4 mile to the road’s 

intersection with U.S. Highway 64 near 

Hothouse; then 

(14) Proceed westerly along U.S. 

Highway 64 approximately one mile to 

the highway’s intersection with a 

marked northerly foot trail at Nealy Gap; 

then 

(15) Proceed northerly along the 

marked foot trail, briefly crossing to and 

from the Isabella map, to the foot trail’s 

intersection with an unnamed 

unimproved road, and then continue 

northerly on the unimproved road to its 

intersection with a second unnamed 

unimproved road known locally as 

Charles Laney Road, a total approximate 

distance of 0.75 mile; then 

(16) Proceed northwesterly on the 

unnamed unimproved road known 

locally as Charles Laney Road, crossing 

onto the Isabella map, to the road’s end, 

and then continue north-northwesterly 

on a marked foot trail to the trail’s 

intersection with a wagon and jeep track 

at Wolfpen Gap, a total approximate 

distance of one mile; then 

(17) Proceed easterly and then 

northeasterly along the wagon and jeep 

trail, crossing onto the Persimmon Creek 

map, to the 3,284-foot benchmark (MLB 

1514) on Payne Mountain, then 

continue northeasterly on the wagon 

and jeep trail (which is partially marked 

as a foot trail) along the ridge line of 

Payne Mountain to the peak of Harris 

Top, then continue north-northeasterly 

on the wagon and jeep trail to the peak 

of Beaver Top, a total approximate 

distance of 2.75 miles; then 

(18) Proceed northeasterly 

approximately 0.25 mile on the wagon 

and jeep trail to the point where the trail 

turns sharply to the southeast at a 

summit within the 2,480-foot elevation 

line on the western shoulder of Indian 

Grave Gap; then 

(19) Proceed north in a straight line 

approximately 0.95 mile to the summit 

of Candy Mountain, and then continue 

north-northwest in a straight line 

approximately 0.45 mile to the line’s 

intersection with an unnamed light-duty 

road known locally as Candy Mountain 

Road; then 

(20) Proceed east-northeasterly on 

Candy Mountain Road approximately 

0.8 mile to the 1,740-foot benchmark 

(BM HR 116); then 

(21) Proceed northerly in a straight 

line approximately 1.2 miles to the 

southernmost peak of Ghormley 

Mountain (within the 2,440-foot 

elevation line); then 

(22) Proceed north-northeast in a 

straight line approximately 1.3 miles to 

the intersection of an unnamed lightduty road known locally as Lower Bear 

Paw Road and an unnamed unimproved 

road just south of Reids Chapel (the 

chapel is shown along the southern edge 

of the Unaka map); then 

(23) Proceed northerly on Lower Bear 

Paw Road approximately 0.35 mile, 

crossing onto the Unaka map, to the 

road’s intersection with an unnamed 

light-duty road known locally as 

Hiwassee Dam Access Road; then 

(24) Proceed easterly and then 

northerly along Hiwassee Dam Access 

Road approximately 2.9 miles, returning 

to the beginning point at the 

northwestern end of Hiwassee Dam. 

Signed: April 15, 2014. 

John J. Manfreda, 

Administrator. 

Approved: May 7, 2014. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2014–16919 Filed 7–17–14; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2013–0007; T.D. TTB–121; 

Ref: Notice No. 138] 

RIN 1513–AC01 

Establishment of the Malibu Coast 

Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

‘‘Malibu Coast’’ viticultural area, which 

covers approximately 44,590 acres in 

portions of Los Angeles County and 

Ventura County, California. The 

viticultural area includes the 

established Saddle Rock–Malibu and 

Malibu–Newton Canyon viticultural 

areas. TTB designates viticultural areas 

to allow vintners to better describe the 

origin of their wines and to allow 

consumers to better identify wines they 

may purchase. 

DATES: This final rule is effective August 

18, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Karen A. Thornton, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW., Box 12, Washington, DC 20005; 

phone 202–453–1039, ext. 175. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

provides that these regulations should, 

among other things, prohibit consumer 

deception and the use of misleading 

statements on labels, and ensure that 

labels 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 December 10, 2013, to the TTB 

Administrator to perform the functions 

and duties in the administration and 

enforcement of this law. 

Part 4 of the TTB regulations (27 CFR 

part 4) authorizes 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) sets forth 

standards for the preparation and 

submission to TTB of petitions for the 

establishment or modification of 

American viticultural areas (AVAs) and 

lists the approved AVAs. 

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 having 

distinguishing features as described in 

part 9 of the regulations and a name and 

a delineated boundary as established 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 AVAs allows vintners 

to describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

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