Department of the Treasury

Alcohol and Tobacco Tax and Trade Bureau

Strategic Plan

Fiscal Years 2007–2012
Department of the Treasury

Alcohol and Tobacco Tax and Trade Bureau

Strategic Plan

Fiscal Years 2007–2012

Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 iii

Table of Contents

Message from the Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

Vision, Mission, and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

TTB Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

TTB Mission Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

Protect the Public . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

Collect the Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

Management and Organizational Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

TTB Strategic Goals and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

Executing the Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Protect the Public Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Business Integrity Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Product Integrity Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Market Integrity Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Effective and Efficient Systems Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Collect the Revenue Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Outreach/Promote Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Enforcement Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Effective and Efficient Tax Collection Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Management and Organizational Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Human Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

Administrative Support Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2

APPENDIX A:Environmental Scanning & Emerging Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2

APPENDIX B: Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis . . . . . . . . . . . . . .  3

APPENDIX C: Cross-Cutting Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3

APPENDIX D: Program Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4

APPENDIX E: Environmental Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4

APPENDIX F: TTB Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4

APPENDIX G: TTB History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
iv Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 v

Message from the Administrator

Challenging times call for leaders who can, and will, meet 

the challenges of today—and tomorrow. Seeking a vision

beyond the current domain of business as usual is imperative

The learning curve has never been steeper, the resources never 

tighter, and the ingenuity to collect the revenue that is rightfully 

due while protecting the public on a number of fronts has never 

been more important

Since the founding of the Republic, TTB’s mission to collect the 

revenue has helped sustain the economy and provide economic 

stability. Increasing technological advances have helped relieve

the tax burden for many industry members. TTB has also reduced

the tax burden for small businesses by instituting fewer reporting 

requirements. TTB is writing regulations in plain language to

provide a greater probability of compliance. Significant TTB

resources have been allocated to educate our industry members 

as a preferred action to enforcement

This educational culture carries over into TTB’s Protect the Public 

programs where TTB inculcates a spirit of public service integrity 

in its employees and a character of business integrity, product 

integrity, and market integrity in the industry members for the 

commodities it regulates. The workforce engages in leading

edge training that requires interaction with other agencies to 

assure that best practices are the norm and that resources are 

used most effectively and efficiently

These are not just words but a daily creed for TTB’s men and 

women who adhere to a common cause—collect the revenue 

that is rightfully due and protect the public from dangerous or 

misleading alcohol beverage and tobacco products through 

industry education efforts, and where necessary, enforcement 

actions

The way we do business is constantly changing, therefore the 

need for continuous strategizing and long-term comprehensive 

strategic planning is greater than ever. TTB strives to clearly

define, and occasionally redefine, its goals within the mission; 

TTB must implement strategic thinking and planning to facilitate 

those efforts. With each update to the TTB Strategic Plan, our

resolve grows stronger. This Plan and its predecessors provide

clear guidance to help us better protect and serve the public and 

to ensure that the regulated industries comply with the law

TTB Administrator 

John J. Manfreda

Secretary of the Treasury 

John Snow appointed John J

Manfreda as the Administrator 

of the Alcohol and Tobacco 

Tax and Trade Bureau (TTB), 

effective January 4, 2005. M

Manfreda, served as Deputy 

Administrator of TTB since the 

Bureau’s founding in January 

2003

As Administrator, Mr. Manfreda

oversees the collection of nearly 

$15 billion per year in Federal 

alcohol, tobacco, firearms 

and ammunition excise taxes, 

as well as the permit systems 

and regulations established 

for those industries under the 

authority of the Internal Revenue 

Code and the Federal Alcohol 

Administration Act
vi Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

As TTB moves forward, the organization is ever-mindful of integrating our performance measures, budget, 

and strategic planning. TTB must manage for results today with an eye always on the future. TTB continue

to forge a path that ensures we can achieve our mission, make our vision a reality, and administer our 

programs effectively and efficiently.

This Plan sets forth the guidelines that TTB needs to serve the public. I am proud of this Plan and the

employees who work so diligently toward achieving our goals

John J. Manfreda

Administrator 
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 1

Introduction

TTB History. On November 25, 2002, President George W. Bush signed into law the Homeland

Security Act of 2002. One provision of this Act abolished the Bureau of Alcohol, Tobacco and Firearms

(ATF) and created two new bureaus, the Bureau of Alcohol, Tobacco, Firearms and Explosives, which moved 

to the Department of Justice, and the Alcohol and Tobacco Tax and Trade Bureau (TTB), which remained in 

the Department of the Treasury

The TTB mission and its predecessor agencies date back to the creation of the Treasury Department and the 

first Federal taxes levied on distilled spirits in 1791

TTB Responsibilities. TTB administers and enforces the Federal laws and implements regulations related 

to the production and taxation of alcohol and tobacco products, as well as the statutes that impose Federal 

excise tax on firearms and ammunition

The major responsibilities of TTB include: 

•	Administering the laws that govern alcohol, tobacco, firearms, and ammunition excise taxes and 

classifying alcohol and tobacco products for excise tax purposes

•	Investigating applications and issuing permits or notices for the operation of distilleries, bonded wine 

premises, and breweries

•	Investigating applications and issuing permits for manufacturers, importers, and export warehouse 

proprietors of tobacco products

•	Regulating the operations of various industrial users of distilled spirits, including manufacturers of nonbeverage products, and tax-free and denatured alcohols

•	Collecting firearms and ammunition excise taxes

•	Regulating the production, packaging, and storage of alcohol and tobacco products and labeling 

and bottling of alcohol beverages

•	Ensuring that labeling and advertising of alcohol beverages provide adequate information to the 

consumer concerning the identity of the product

•	Preventing misleading labeling or advertising of alcohol beverages

•	Regulating the marketing and promotional practices concerning the sale of alcohol beverages by 

producers, importers, and wholesalers primarily through the investigation of allegations of unfair trade 

practices

•	Enforcing provisions of the Alcoholic Beverage Labeling Act, which mandates that a Government 

warning statement appear on all alcohol beverages for sale and distribution in the United States

•	Briefing members of Congress and Treasury officials on matters relating to alcohol beverages, 

tobacco products, and firearms and ammunition excise taxes
2 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Vision, Mission, and Values

Vision

Our vision is to be an organization of people who value each other and who treat each other and their 

customers with the respect that they deserve. TTB intends to uphold the laws, for which TTB is responsible, in

a fair and practical way, affording all an opportunity to have public opinions heard without prejudice. TTB

intends to carry out its missions without imposing inappropriate or undue burden on those from which TTB 

collects taxes and those TTB regulates

Mission

The mission of TTB is to:

•	 Collect alcohol, tobacco, firearms, and ammunition excise taxes that are rightfully due;

•	 Protect the consumer of alcohol beverages through compliance programs that are based upon

education and enforcement of the industry to ensure an effectively regulated marketplace; and

•	 Assist industry members to understand and comply with Federal tax, product, and marketing

requirements associated with the commodities we regulate

Values

TTB employees value each other and those TTB serves. TTB

•	 Upholds the highest standards of excellence and integrity;

•	 Provides quality service and promotes strong external partnerships;

•	 Develops a diverse, innovative, and well-trained work force in order to collectively achieve our

goals; and 

•	 Embraces learning and change in order to meet the challenges of the future.
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 3

TTB Stakeholders 

TTB’s stakeholders care about TTB’s mission and how the Bureau performs

Business

U.S. And State 

Governments & 

Associations

Citizens, 

Consumers, 

And Foreign 

Governments

ALCOHOL, TOBACCO, FIREARMS 

& AMMUNITION INDUSTRIES

•	Distilled Spirits Plants

•	Bonded Wine Premises

•	Breweries

•	Alcohol Importers & Wholesalers

•	Industrial Alcohol Producers & Users

•	Manufacturers and Users of 

Nonbeverage Alcohol Products

•	Tobacco Products Manufacturers

•	Tobacco Importers & Tobacco Export 

Warehouse Proprietors

•	Firearms and Ammunition 

Manufacturers

TRADE GROUPS

•	Wine

•	Distilled Spirits

•	Beer

•	Tobacco

•	Alcohol Fuel Plants

•	Importers

•	Wholesalers

FEDERAL AGENCIES

•	Office of Management and 

Budget 

•	General Accountability Office

•	Department of Agriculture

•	Department of Energy

•	Department of Homeland 

Security

•	Department of Justice

•	Federal Trade Commission

•	Food and Drug Administration

•	U.S. Fish and Wildlife Servi

•	U.S. Trade Representati

DEPARTMENT OF TREASURY

•	Bureau of the Public Debt

•	Departmental Offices

•	Internal Revenue Service

STATE AND LOCAL 

GOVERNMENTS AND 

RELATED ASSOCIATIONS

•	National Association of State 

Attorneys General

•	Federation of Tax Administrators

•	National Conference of State 

Liquor Administrators

•	National Alcohol Beverage 

Control Association

PUBLIC/

FOREIGN 

GOVERNMENTS

•	U.

•	Europe

•	Canada

•	Mexico

•	South America

•	Australia

•	Asia

•	South Africa

•	New Zealand
4 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

TTB Mission Overview

Protect the Public

TTB enforces the laws and regulations that ensure 

regulated industry products are safe for consumption, 

people running TTB-regulated businesses are lawabiding citizens, and TTB-regulated businesses are 

legitimate. TTB licenses these industries, and our

investigators travel throughout the country and its 

territories and commonwealths visiting distilleries, 

bonded wine premises, breweries, and tobacco 

products manufacturers to ensure that industry 

members are complying with TTB regulations

TTB assures that industry members use the right 

manufacturing practices and formulas, and that labels 

and advertisements are accurate. The investigators

collect samples, and our laboratories analyze the 

products to make sure they are safe and accurately 

represented by the label

TTB investigators conduct approximately 400 product 

integrity, trade practice, contamination, and consumer 

complaint investigations annually. For example, TTB

detained mislabeled products, detected a tobacco 

product being imported as a mouth freshener, as 

well as discovered a company producing herbal fruit 

beverages that contained more than 0.5 percent

alcohol thereby subjecting the product to tax, and a 

distilled spirits plant (DSP) using an herb with sedative 

properties in their product. These actions, among a

great many others, demonstrate that TTB will continue 

to find more effective and efficient ways to protect the 

public

Collect the Revenue

The United States levies and TTB collects excise 

taxes on the manufacture or sale, production of 

wine, distilled spirits, malt beverages, tobacco 

products, firearms and ammunition. In recent years,

TTB has collected nearly $15 billion annually from 

the regulated industries that make these items. TTB

To meet its mission, TTB must maintain a staff 

of highly skilled and specialized employees

Our offices employ auditors; tax, labeling, 

and formulation specialists; investigators; 

and chemists to ensure that we can protect 

the public and collect the tax revenue from 

the regulated industries
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 5

collected approximately 98 percent from the alcohol and tobacco industries. Alcohol and tobacco each

represent about 49 percent of the annual tax receipts, and Firearms and Ammunition Excise Tax (FAET) 

represents approximately 2 percent. About 400 taxpayers account for roughly 98 percent of the annual

excise tax collections

As the third largest tax collection agency in the U.S. Government (after the Internal Revenue Service [IRS

and Customs and Border Protection [CBP]), TTB strives to improve service to the taxpayers and reduce 

their burden in complying with Federal laws. To help reach this goal, TTB moved from random selection of

audit targets to risk-based selection. This move will help the organization achieve greater effectiveness and

efficiencies in its field operations. Other areas where TTB is making strides to become more effective and

efficient include:

•	 Working to increase compliance by using statistical methods to measure and analyze industrywide compliance with tax laws;

•	 Performing personnel and financial background checks of all operating permit applicants as

needed;

•	 Enhancing the amount and presentation of online information for taxpayers and other industry

members to make complying with regulations easier;

•	 Providing regulations, forms, and other information in plain language format; and

•	 Continuing to create alternative excise tax return filing methods through

e-Government solutions

Management and Organizational Excellence 

Organizational Structure. TTB is organized into headquarters operations and field-level operations

TTB maintains headquarters in Washington, D.C., laboratories in Beltsville, Maryland and Walnut Creek

California, National Revenue Center in Cincinnati, Ohio, the field audit offices and seven trade investigation 

offices strategically located in major cities throughout the United States and Puerto Rico. See Appendix I for

a schematic breakout of TTB’s organizational structure

General Management. The Administrator heads TTB, a Bureau of the U.S. Department of th

Treasury. The Administrator serves under the general direction of the Secretary of the Treasury and under the

supervision of the Deputy Assistant Secretary, Tax, Trade, and Tariff Policy, Office of Tax Policy

General management, under the leadership of the TTB Administrator and Deputy Administrator, is responsible 

for establishing policy and assuring that the administration of activities at TTB are in compliance with the 

policies and delegations of authority of the Secretary of the Treasury.

The Deputy Administrator oversees the Congressional Liaison, who serves as the point of contact on all 

congressional matters, and the Public Affairs Specialist, who is the Bureau’s principal advisor on media 

affairs. The Deputy Administrator also supervises the Equal Employment Opportunity Officer at TTB,

who ensures that every person has a right to work in an environment free from harassment and unlawful 

discrimination and has equal opportunities for jobs and advancement
6 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

TTB general management also consists of the following offices: 

1. Assistant Administrator, Field Operations (FO)  FO provides assistance and advic

to other Federal and State agencies, industry members, and the public to ensure effective tax 

and trade compliance with the Federal Alcohol Administration (FAA) Act, the Internal Revenue 

Code (IRC), the Alcoholic Beverage Labeling Act, and the Webb-Kenyon Act. FO also develops

and implements programs and conducts tax audits and investigations of industry members or 

applicants seeking permits to enter into a TTB-regulated business

2. Assistant Administrator, Headquarters Operations (HQ Ops)  HQ Op

determines and publishes policy decisions regarding the regulation of the alcohol, tobacco, 

firearms, and ammunition industries and provides assistance and advice to industry members, 

other Federal and State agencies, foreign governments, and the public

3. Assistant Administrator, Management/Chief Financial Officer (MGT)  MG

provides human resources, facilities, procurement, training, and financial information and 

guidance to its customers

4. Assistant Administrator, Information Resources/Chief Information Office

(CIO). The Office of the CIO provides effective and secure information technology (IT) solutions 

that allow TTB to carry out its mission without imposing undue burdens on industries that the 

Bureau regulates

5. Director, Equal Employment Opportunity / Diversity Advancement (EE

DA). The EEO/DA office provides leadership, direction, and guidance in carrying out TTB’s 

commitment to equal employment opportunity and diversity by: developing, directing, and 

administering EEO policies; supervising the EEO activities; processing and managing all EEO 

discrimination complaints; and recommending actions for complaints filed

6. Chief Counsel (CC)  The CC provides legal advice to the Administrator, Deputy Administrator

and other officials within TTB, and is responsible for performing all the legal services connected to 

the laws under the jurisdiction of TTB

7. Director, Office of Inspection (INS)  The INS provides coordination and management o

Bureau-wide and organizational segment reviews and internal investigations of TTB offices and 

programs

8. Executive Liaison for Industry and State Matters (ELIS)  ELIS develops an

implements programs designed to provide harmonious relationships and effective interchanges 

between TTB, regulated industry members, and State alcohol regulatory and taxation agencies
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 7

TTB Strategic Goals and Objectives

TTB’s strategic goals and objectives help meet the mission and goals of the Department of the Treasury

Treasury and TTB Strategic Plans Relationship

TREASURY STRATEGIC 

GOALS AND OBJECTIVES 

TTB PROTECT THE PUBLIC 

(PTP) MISSION AND 

STRATEGIC GOALS

TTB OBJECTIVES

Treasury Strategic Goal (Economy): 

U.S. and World Economies Perform at Full Economic Potential

TREASURY ECONOMIC 

STRATEGIC OBJECTIVE: 

Improved economic opportunity, 

mobility and security with robust, 

real, sustainable economic 

growth at home and abroad

Outcome:

Strong U.S. economi

competitiveness

TTB PTP STRATEGIC 

GOALS

1. BUSINESS INTEGRITY: 

Assure that only persons 

who carry permits as 

authorized by statute 

operate within the industries 

TTB regulates

2. PRODUCT INTEGRITY: 

Help industry members

comply with all Federal 

labeling and advertising

requirements for their

products

3. MARKET INTEGRITY:

Assure the alcohol 

marketplace is free from 

anti- competitive practices

4. EFFECTIVE AND 

EFFICIENT SYSTEMS 

TO PROMOTE 

ECONOMIC 

OPPORTUNITY:

Facilitate economic 

opportunity and growth 

by maximizing TTB PTP 

systems’ effectiveness and 

efficiencies

TTB PTP OBJECTIVES

TTB PTP 1.1. Issue permits to 

qualified applicants

TTB PTP 1.2. Assure that no 

current industry members 

are linked to criminal or 

terrorist organizations, or 

are otherwise a prohibited 

person

TTB PTP 2.1. Assure that 

industry members provide 

full and accurate product 

information to the consumer

TTB PTP 2.2. Assure that 

industry members avoid 

prohibited language and 

misleading statements on 

their labels and advertising

TTB PTP 3.1. Identify and 

address unfair trade 

practices and barriers in the 

U.S. alcohol marketpla

TTB PTP 3.2. Identify and 

address barriers in the 

international marketplace

TTB PTP 4.1. Increase 

effectiveness and 

efficiencies of TTB Protect 

the Public processes and 

systems
8 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Treasury Strategic Goal (Security): Strengthened International Financial System 

Security and Enhanced U.S. National Security

TREASURY SECURITY 

STRATEGIC 

OBJECTIVE: 

Minimized and neutralized 

threats to U.S. national securit

and international financial 

systems

TTB PTP 

STRATEGIC GOAL

1. BUSINESS INTEGRITY 

(Security):

Assure that only persons 

who carry permits as 

authorized by statute 

operate within the 

industries TTB regulates

TTB PTP OBJECTIVES 

TTB PTP 1.1. Issue permits to 

qualified applicants

TTB PTP 1.2. Assure that no 

current industry member 

is linked to criminal or 

terrorist organizations, or 

is otherwise a prohibited 

person

Treasury Strategic Goal (Finance): 

Effectively Managed U.S. Government Finances 

TREASURY STRATEGIC 

GOALS AND 

OBJECTIVES 

TTB COLLECT THE 

REVENUE (CTR) 

MISSION AND 

STRATEGIC GOALS

TTB OBJECTIVES

TREASURY FINANCIAL 

STRATEGIC OBJECTIVE: 

Available cash resources to 

operate the government as 

needed without excess

Outcome: 

Revenue collected when due 

through a fair and uniform 

application of the law

TTB CTR STRATEGIC 

GOALS

1. VOLUNTARY 

COMPLIANCE:

Provide high quality 

service, while imposing the 

least regulatory burden

2. TAX VERIFICATION 

AND VALIDATION:

Promote voluntary 

compliance and eliminate 

or prevent tax evasion and 

other criminal conduct

3. EFFECTIVE AND 

EFFICIENT TAX 

COLLECTION:

Provide the most effective 

and efficient system for the 

collection of all revenue that 

is rightfully due

TTB CTR OBJECTIVES

TTB CTR 1.1. Improve service 

to the taxpayer and reduce 

the burden of compliance 

with Federal law [Service 

and Outreach]

TTB CTR 2.1. Promote 

voluntary compliance and 

prevent tax evasion and 

identify other criminal 

conduct in the regulated 

industries [Enforcement]

TTB CTR 3.1. Maximize 

electronic solutions [e-Gov]
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 9

Treasury Strategic Goal (Management): 

Management and Organizational Excellence (MOE)

TREASURY STRATEGIC 

GOALS AND 

OBJECTIVES 

TTB MISSION SUPPORT 

STRATEGIC GOAL AND 

OBJECTIVE

TTB OBJECTIVES

TREASURY MOE 

STRATEGIC OBJECTIVE: 

Constructive contribution to 

Americans’ quality of life through 

an enabled and effective 

Treasury Department

Outcome: 

A citizen-centered, resultsoriented and strategically 

aligned organization

Exceptional accountability and 

transparency

TTB MOE STRATEGIC 

GOAL 

1. MANAGEMENTSUPPORTED 

OPTIMUM PROGRAM 

EFFECTIVENESS AND 

EFFICIENCY: 

Ensure that all TTB 

programs operate at 

optimum efficiency and 

effectiveness and with full 

accountability, by providing 

high quality management 

and administrative support

TTB MOE OBJECTIVES

TTB MOE 1.1. Implement 

a performance-based 

management system for 

meeting TTB’s mission

TTB MOE 1.2. Deliver 

streamlined, flexible, and 

robust IT solutions that 

maximize the performance, 

value, and results to enable 

TTB to fulfill its mission and 

goals

TTB MOE 1.3. Use financial 

management systems 

to support TTB strategic 

management and financial 

accountability by providing 

information that is useful, 

timely, and reliable, and 

that assists TTB in optimizing 

decision-making

TTB MOE 1.4. Manage 

human capital to support 

TTB programs and the 

achievement of Bureau 

goals by building 

and sustaining a work 

environment conducive to 

performance excellence and 

personal and organizational 

development
10 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Executing the Strategic Plan

TTB subscribes to the Department of the Treasury’s Integrated Management System. To accomplish its

strategic objectives effectively, the Department of the Treasury and TTB must link outcomes, strategy, budget, 

and the production of value into an integrated management system. This management system, based on a

model of continuous improvement, is shown below

Integrated

Management

System

Compare actual to target 

performance and benchmarks

Determine changes that will 

produce the best value

Broadly defined intended results 

and the methods to achieve them

Track the progress, cost and value 

of achieving outcomes

Specifically defined 

intended results –

performance

How funds will be allocated to

 achieve the intended results 

– budget & spend plan

Achieving enough benefit for 

the investment – value

Establish long–term 

and annual targets:

Assessing & Improving

Strategic Planning

Executing & Performing

Performance Planning

& Budgeting

s3PENDING

s0ERFORMANCE

s6ALUE
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 11

Protect the Public Mission

Business Integrity Strategies

Treasury Strategic Goals

Economy: U.S. and World Economies Perform at Full Economic Potenti

Security: Prevented Terrorism and Promoted the Nation’s Security Through Strengthened International 

Financial Systems

The National Revenue Center (NRC) and the Trade Investigations Division (TID) work together to increase the 

effectiveness and efficiency of the NRC’s telephonic permit process to ensure that only people with permits or 

qualification operate in the industries TTB regulates and to establish better telephonic methodologies based 

on lessons learned as a result of field investigations. Reciprocity with State authorities will also provide better

resource utilization as well as establish mutual lessons learned between State and TTB authorities

Using watchlists created by the Department of Homeland Security (DHS) or the Federal Bureau of 

Investigation (FBI) as well as scanning the International Trade Database System (ITDS) regularly will provide 

tools for increasing potential terrorism awareness for TTB’s Trade Analysis and Enforcement Division (TAED) 

and the TID investigators. TTB will use these tools and others to expand the categories of prohibited person

Product Integrity Strategies

Treasury Strategic Goal 

Economy: U.S. and World Economies Perform at Full Economic Potenti

TTB’s Advertising Labeling and Formulation Division (ALFD) will establish and pursue a market-based labeling 

and advertising compliance verification program. In the past, ALFD performed much of its work through

certifying labels with limited understanding if the label that had been certified was actually the label that was 

on the product in the marketplace

ALFD is currently undertaking a pilot study to pull product in the marketplace to test for regulatory 

compliance. ALFD will also seek to establish a statistically valid sample based on the results of a statistical

study performed in FY 2007.

ALFD will also seek to increase compliance by initiating educational outreach programs through TTB’s Web 

site, seminars, workshops, and Webcasts
12 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Market Integrity Strategies

Treasury Strategic Goal 

Economy: U.S. and World Economies Perform at Full Economic Potenti

Several TTB divisions provide Federal Alcohol Administration Act seminars to educate industry members. The

philosophy behind this approach is that industry members may comply through education or enforcement

Education may provide preventive or corrective action in helping industry members to comply. A seminar

provided on industry member Web sites is one example of a tool that TTB may use to reach the maximum 

number of industry members through cooperative partnerships. Also, TTB needs to ensure that its employees

are well-trained to help provide industry members the information they need to comply. Training employees

in-house through on-the-job training will provide brush-ups and internal techniques that will increase 

knowledge transfer and sharing

Where education falls short or through purposeful intent an industry member fails to comply, TTB will send 

letters to industry members, for example, in cases of prohibited inducements. The first or second letter may

allow industry members to explain their actions. A successive letter may result in an investigatio

To expand the scope of operation, TTB investigators and other TTB divisions will work with State Alcohol 

Beverage Control Boards. Information sharing will likely be beneficial to all organizations concerned. Pollin

wholesalers will lead to further understanding of acceptable behavior in regulatory compliance

Establishing successful trade practice cases will help TTB to enhance industry compliance. By publicizing

successful cases, TTB can reinforce the importance of compliance. The establishment of a market-based

labeling and advertising compliance verification program will further assure that the market is free from anticompetitive practices by increasing field time in the review of labeling and advertising

Working to comply with an importing country’s laws and regulations is important to U.S. industry membe

This will require greater cooperation with foreign governments. As a consultant group, TTB’s International

Trade Division (ITD) must continue to educate the U.S. Trade Representative (USTR) concerning what i

important to TTB’s regulated industry members. It is important for ITD to note, in conjunction with the USTR,

the limitations and barriers to doing business in other countries. This effort will likely result in developing

memoranda of understanding with foreign countries, which will encourage working relationships between 

TTB and its foreign counterparts and provide TTB with a stakeholder’s role
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 13

Effective and Efficient Systems Strategies

Treasury Strategic Goal 

Economy: U.S. and World Economies Perform at Full Economic Potenti

TTB Protect the Public objectives require in-depth analysis to assure that TTB is facilitating economic 

opportunities effectively and efficiently. These objectives and measures are meant to help establish the

“bang for the buck” that the public receives for its tax dollars. The first step is to assure that TTB has a

cost accounting system in place to ensure a reasonable estimate of the unit cost of various programs or 

sub-programs that will provide both managerial cost accounting data while reconciling to external cost 

accounting data (e.g., net cost statemen

The benefit to the public can only be measured by internal comparisons over time since TTB’s programs are 

unique (e.g., no other Federal Government program offers a benchmark or benchmarks for comparison). T

must diligently measure trends in unit costs to help establish the effectiveness and efficiencies of individual 

programs
14 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Collect the Revenue Mission

Outreach/Promote Cooperation

Treasury Strategic Goal 

Finance: Effectively Managed U.S. Government Financ

The Bureau operates under the assumption that most industry members want to comply with the laws and 

regulations that govern the industry. However, statutory and regulatory complexity decreases the chances of

voluntary compliance, as reported by the American Institute for Certified Professional Accountants in a recent 

Congressional hearing

TTB dedicates a significant portion of its Collect the Revenue resources to outreach programs that educate 

industry members and, where possible, simplify the reporting and tax filing process. Through various

workshops, seminars, and conferences, TTB provides plain language instructions and one-on-one attention to 

promote voluntary compliance and enhance cooperation and communication between TTB and its regulated 

industry members

Enforcement Strategies

Treasury Strategic Goal 

Finance: Effectively Managed U.S. Government Financ

While the majority of industry members comply voluntarily, TTB strives to ensure that the industry members 

comply with all TTB laws and regulations. Industry members who violate these laws and regulations take

unfair advantage of those who comply thus creating a tax gap. It is imperative, therefore, that where

outreach and cooperation fail to promote voluntary compliance, TTB take enforcement actions to eliminate or 

prevent tax evasion and other criminal conduct where it occurs
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 15

Effective and Efficient Tax Collection Systems

Treasury Strategic Goal 

Finance: Effectively Managed U.S. Government Financ

The Bureau has developed effective and efficient tax collection systems that: 

1. Simplify the filing and reporting system

2. Increase the probability of voluntary compliance; an

3. Provide one of the best ratios of administrative costs to collect taxes to the revenue collected in th

Federal Government

Furthermore, TTB supported legislation that reduces the number of filings that small businesses must provide 

in a given year. The legislation (Public Law 109-59 effective January 1, 2006) reduced costs to the small

taxpayer as well as decreased the cost of collection for TTB
16 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Management and Organizational Excellence Mission

Treasury Strategic Goal 

Management: Management and Organizational Excellence

Top management at TTB is accountable for general management responsibilities including leadership, 

performance culture, and job satisfaction, and other categories listed under Office of Personnel 

Management’s Federal Human Capital Survey (FHCS). While TTB has scored above average in all

categories on the survey, discussions with the Treasury Strategic Planning group and TTB’s Strategic Planning 

workgroup assessed that, for purposes of this strategic plan, for the next five years TTB should concentrate on 

areas where it was least successful in the FHCS

Human Capital

TTB’s organizational experience is vast. We dedicate a significant portion of the Master Plan to human

resources strategic planning. Of TTB’s 529 employees, 330 (62.4 percent) are employed within th

following position titles. The breakdown of these 330 employees is shown belo

Occupation Title Total Within the 

Occupation

As % 

of Total TTB 

Population

Auditor 80 15.

Attorney 17 3.

Chemist 23 4.

Investigator 75 14.

Alcohol and Tobacco Specialist/Tax Specialist /

Tax and Trade Specialist 135 25.

Total 330 62.4
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 17

Employees Eligible to Retire.

The breakdown of the 133 employees eligible for retirement during the next five years is as follows:

Occupational Title# Eligible to RetireAs % of Total of All Employees within the Identified Occupational TitlesAs % of All Employees in the same Occupational TitleGS-9GS-11GS-12GS-13GS-14GS-15SES

Auditor 27 20.3 33.8 2 8 

Attorney 5 3.8 29.4 4

Chemist 3 2.3 13.0 2

Investigator 31 23.3 41.3 27

AT Spec/Tax Spec/Tax 

and Trade Spec 67 50 49.6 34 11 7 14 

Total 133 2 34 19 34 37 6 1

In light of the proportions of the original group of 330 employees, it is not surprising that the majority of 

those eligible for retirement are either Investigators or Alcohol and Tobacco Specialists, or Tax Specialists, or 

Tax and Trade Specialists. Of those immediately eligible for retirement, 73.7 percent (98 of 133) currentl

occupy positions with these titles. Especially notable is that 58.7 percent (78 of 133) of those currentl

eligible to retire are employed at the GS-13 level or above.

Information Technology

TTB’s IT Strategic Framework aligns IT goals, priorities, and initiatives to the Administrator’s priorities, goals, 

and objectives. This framework seeks to drive IT results by creating an integration strategy with the program

offices. This alignment also ensures the development of IT performance measures, which drive behaviors

required to achieve TTB’s IT mission and vision
18 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

TTB IT Strategic Framework

Department of the Treasury Mission

Serve the American people and strengthen national security by managing the U.S. Government’s finances effectively , promoting economic 

growth and stability, and ensuring the safety, soundness, and security of U.S. and international financial systems .

Department of the Treasury Strategic Goals

Effectively Managed 

U.S. Government 

Finances

U.S. and World 

Economies Perform at 

Full Economic Potential

Prevented Terrorism 

and Promoted the 

Nation’s Security 

through Strengthened 

International Financial 

Systems

Manage the 

Government’s Finances 

Effectively

TTB Mission

To collect alcohol, tobacco, firearms, and ammunition excise taxes that are rightfully due; to protect the consumer of alcohol beverages 

through compliance programs that are based upon education and enforcement to ensure an effectively regulated marketplace; and to assist 

industry members to understand and comply with Federal tax, product, and marketing requirements associated with the commodities we 

regulate. 

TTB Strategies 

Collect the 

Revenue

Management & 

Organizational 

Excellence

TTB IT Mission

To deliver streamlined, flexible, and robust IT solutions that maximize the performance, value and results of the entire Bureau to enable TTB 

to fulfill its mission effectively and meet its strategic business goals efficiently . 

TTB IT Goals

Goal 1 – Enhance the security of data and information systems

Goal 2 – Align TTB data availability to TTB’s business needs and to Federal government lines of business

Goal 3 – Apply innovative solutions to improve service level performance and while increasing cost efficiency

Goal 4 – Ensure compliance with Federal mandates

Protect the 

Public

The IT Strategic Framework shows the clear linkage from business priorities identified by the Department of 

the Treasury to TTB IT goals. It also links TTB’s strategic business needs with its capabilities to achieve the

objectives of IT standardization, interoperability, compatibility, and fiscal discipline. The CIO is capturing

this traceability and linkage by realigning TTB’s IT systems to reflect industry standards and best business 

practices, while ensuring compliance with Federal mandates (e.g., Homeland Security Presidential Directiv

– 12, Record Management Initiative 5015.2, OMB Memoranda 05-22 and 07-16, Transition Planning for

Internet Protocol Version 6 and Safeguarding Against and Responding to the Breach of Personally Identifiable 

Information, respectively) for application within the Federal Government. The CIO’s priority is to maintain a

well-led, high-performing IT organization that delivers responsive IT support to TTB program offices
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 19

Financial Management

Strategic Alignment of Account Code Structure. Traditionally, budgets are not usually constructed 

around the organization’s goals, but rather linked with organizations and programs, which makes it difficult 

to mesh budget and performance. At TTB we have solved this problem by introducing a new account code

structure that we will apply during the FY 2008-2012 accounting periods.

This account code format will allow for the tracking of costs consistently from one year to the next, and 

capture critical strategic links in programs, goals, and major lines of business. The new coding will be used

in both the core accounting system, and its various modules, and serves as an accounting and budget tool 

to help capture the strategic relationships between our inputs, the programs and activities that use those 

inputs, and the costs of the outputs that we create through the programs and activities.

The cost information that will be gathered from this process will help us better explain the value and 

relevant cost of our missions, goals, and programs to those outside of our organization, and improve 

our management over programs, as well as aid in the planning and decision-making process. Also, the

application of the new “reporting category code” will capture valuable cost information that can be used in 

connection with process improvement efforts in our organization and serve as an integral part of our strategic 

planning process. The information known as “reporting category codes” will be captured along with other

traditional budget categories such as cost center, object class, fund, budget fiscal year, and project codes
20 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Administrative Support Operations

Support Systems Integration. Many of TTB’s administrative support systems such as travel, 

timekeeping, payroll, procurement, purchase cards, and human resources are integrated into the Oracle 

Federal Financial system (core accounting), and capture information and business transactions. The diagram

below displays the high degree of complexity and array of systems that impact the core accounting system.

WebT A ePayroll

Orac le

Dis c overer

T I E R /F A C T S

And 224

IPAC C itidirec t

CCR

Gov T rip

ORACLE

FE DE R AL

FINANCIALS 11i

H R Connec t

Pris m

Performanc e 

Impac t

S unflow er

T reas ury 

Learning Mgt 

S ys tem 

Payroll Human

Resources

F inancial Reporting –

TIE R & Interagency 

Credit Payments

Cards Procurement Vendor F ile

Asset Mgmt System

Procurement

E lectronic Travel System

T imekeeping Training 

System

E mployee 

Performance Mgmt 

System

Core Accounting 

System

FMS

C as hlink

TTB FE T 

Tax 

S ys tem

Reporting 

Tool

Revenue 

Accounting

PayGov

TTB also has several automated systems separate from the core accounting system. These systems are

standalone, commercial off-the-shelf products and primarily serve as information repositories for asset 

management (Sunflower), employee performance (Performance Impact), and employee development 

(Treasury Learning Management System). Not all of these systems have automatic exchanges that feed into

the core accounting system, but in many cases data is extracted from one system and entered into other 

systems
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 21

Franchised Administrative Services. Initially, accomplishing the collect the revenue and protect the 

public mission objectives at TTB would have required building an administrative infrastructure comprised of 

financial and management systems, resources, and human capital. The fundamental cornerstone in setting up

the administrative structure in support of these core business services was to ensure that the business strategy 

would support all TTB programs and enable them to operate at optimum efficiency and effectiveness. The

long-term success of the Bureau depends on the administrative support to deliver the highest quality services 

in the areas of management and financial systems, while providing outstanding customer service to the TTB 

program staff

However, TTB realized that to accomplish this objective, the organization needed to embrace a business 

strategy that placed a heavy reliance on outsourcing most of its administrative and information technology 

support services. When the Bureau was established, a skeleton number of staffing positions were authorized

to provide the administrative support structure. By design, TTB was compelled to pursue an alternative

service provider. As a result, in FY 2004, TTB began to separate its administrative support services from

ATF, including its time and attendance, procurement, human resource, travel, property, and accounting and 

financial management services. TTB negotiated a reimbursable services agreement with the Bureau of Public

Debt’s Administrative Resource Center (BPD ARC), the key administrative services provider of Treasury’s 

Franchise Fund.

The agreement included numerous performance standards for the service provider to achieve. Typifying

public-to-public competitive outsourcing, this performance-based agreement between BPD ARC and TTB 

covers financial, payroll, human resources, procurement, asset management, and travel services

After transitioning its human resource function over to BPD ARC, the next and most complex step was to 

transition the financial records, including its tax records from multiple accounting systems that had been used 

during the past decade. Beginning in FY 2005, TTB migrated its financial operations to BPD ARC, including

key legacy tax information. This successful migration was fully completed during FY 2006, and included a

multi-phase project that transferred the legacy tax data into the BPD ARC repository for tax information from 

multiple financial systems maintained at ATF and at U.S. Custo

Strategy for Future Franchised Services. TTB anticipates a long-term partnership with BPD ARC

Highlights derived from this partnership include: 

•	Since 2004, BPD ARC has been providing the Bureau with administrative support in the areas of 

accounting, travel, payroll, human resources, and procurement with a focus on excellence and 

superior service

•	The human resource function is a full service arrangement and includes employee relations; staffing, 

recruitment, and classification; personnel actions and payroll processing; employee benefits and 

retirement; personnel security (now performed through the Department of the Treasury); time and 

attendance (through WebTA); and drug testing.

•	The BPD ARC mission is to aid in improving overall Government effectiveness by delivering responsive 

and cost-effective administrative support to its customers, thereby improving the customers’ ability to 

effectively discharge their mission.

•	While the efficiency goals are somewhat reflective of the private sector, Federal regulations 

are perpetually evolving. This increasingly complex environment presents both challenges and

opportunities in an administrative support services environment.
22 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

•	The BPD ARC enterprise system eliminates the need for TTB to develop a unique set of accounting 

and management support systems. This Government enterprise solution provides the necessary budget

and accounting system platform; provides key management reporting capability through Web-based 

pre-defined reports and an ad hoc reporting tool (e.g., Discoverer); and also provides a number o

integrated systems to support our core business activities. As described previously, implementation

of the WebTA timekeeping system, for instance, now allows TTB to track its direct labor costs and 

indirect costs for its core budget activities, strategic goals, programs, and specific projects

In summary, this partnership allows TTB to focus staff resources and energies on core business applications

In addition to the basic administrative services mentioned above covered under the BPD ARC agreement, 

TTB operates a Training and Professional Development Division (TPD) that is dedicated to enhancing the 

future of the agency by facilitating the professional development of all TTB personnel. The Treasury Learning

Management System is used to facilitate training requests and procurement actions for those services
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 23

APPENDIX A:

Environmental Scanning & 

Emerging Issues

Revenue from 

Excise Tax Collections

TTB will likely maintain its current revenue base for 

the foreseeable future (e.g., through 2010) based o

the trends that have become evident over the past 10 

years and projected into the future. While the past is

not necessarily a predictor of the future, the past data 

has been moderately predictable for both tobacco 

and alcohol beverages. There is a slight bias toward

slightly reduced revenues for alcohol and tobacco 

combined

Tobacco Sales and Excise Tax Collections. 

Tobacco sales in the U.S. are expected to decreas

slightly, based on our research. TTB expects a 4 t

5 percent decline from 2007 through 2012. This

decline will be based mostly on a decline in cigarette 

sales. In 2006, cigarettes accounted for 76 percen

of taxes collected and therefore, will likely determine 

future collections in the tobacco arena. From 200

through 2006, there was a total decrease in cigarette 

collections of 5 percent. Although the Centers for

Disease Control and Prevention reports that the 

smoking rate (number of smokers) has remained 

relatively unchanged over the past six years, TTB 

estimates that the amount these smokers consume 

has diminished. With the economy slowing, an

the passage of cigarette tax increases by States and 

indoor smoking restrictions, this downward collections 

trend will likely continue

Within some of the other areas of the tobacco 

industry, TTB expects large cigar sales to remain 

relatively unchanged or to dip slightly in a weakening 

economy. Large cigar sales accounted for 23 percen

of tobacco collections in 2006. Small cigars, snuff

TTB Establishes Tobacco 

Laboratory

In FY 2008, the Scientific Services Division 

established the Tobacco Laboratory to 

refocus TTB efforts in the area of tobacco 

analyses. The new lab will enable

expedited responses to the industry and 

growth in our technical ability.

The mission of the Tobacco Laboratory 

includes:

•	Supporting tax classification for any 

tobacco product submitted by customers 

•	Supporting investigations of tobacco 

industry by TTB auditors and investigators 

•	Providing technical support to State tax 

authorities on tobacco products 

•	Providing technical support to other 

Federal agencies on tobacco-related 

issues 

The Tobacco Laboratory will work with 

the laboratory staff of domestic and 

international tobacco regulatory agencies 

for the purpose of sharing and enhancing 

technical expertise on tobacco.

This shift in focus will give our staff the time 

needed to expand our expertise and our 

technical capabilities in analyzing tobacco.
24 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

chewing tobacco, pipe tobacco, and roll-your own tobacco combined accounted for approximately 1 

percent of total tobacco collections, consistent with the previous 3 years, and will more than likely stay 

consistent over the next 5 years, with roll-your-own tobacco sales possibly becoming a more attractive 

alternate to traditional cigarettes or other types of tobacco. There could be modest increases in snuff and

chewing tobacco sales as the big tobacco industries are becoming interested in producing and marketing 

these alternatives to cigarettes

Another factor that could significantly affect future tobacco sales is the State Children’s Health Insurance 

Program (SCHIP) or similar legislation that would increase the Federal excise tax on tobacco products. The

bill is scheduled to be revisited in 2009. During a similar tax increase in 2000, tobacco taxes levels jumped

23 percent over the previous year. If the proposed SCHIP increase passes, TTB expects a similar increase in

collections if history is any indicator

Cigarette Consumption

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

per capita pounds of tobacco consumed

Source: USDA, Economic Research Service

- 21%
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 25

Chewing Tobacco Consumption

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

per capita pounds of tobacco consumed

Source: USDA, Economic Research Service

U.S. Cigarette Consumption & Wholesale Price

0

100

200

300

400

500

600

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Billion Pieces

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Wholesale Price ($ per pack)

Source: USDA, Economic Research Service

- 60%
26 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Alcohol Beverages Consumption and Excise Tax Collections.

Alcohol beverage consumption had decreased marginally from 1990 through 1995. The trend, however,

has been up since then although the percentage of increase appears to be decreasing. Substitutions should

occur through 2015 as beer drinkers turn to wine and distilled spirits consumption. Two variables that

influence wine consumption are age and income. With the onset of Baby Boomers, these variables favor

more wine consumption and less beer drinking. Spirits should also increase significantly over tim

ALCOHOL BEVERAGE CONSUMPTION TRENDS

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

DATE COMPARISONS

PERCENT CHANGE

BEER

WINE

DISTILLED SPIRITS

TTL ALCOHOL

BEVERAGES

BEER -3.7% 5.4% 2.0% 1.0% -0.1%

WINE 7.6% 20.3% 22.0% 13.3% 5.7%

DISTILLED

SPIRITS

-10.2% 7.0% 17.2% 10.8% 6.1%

TTL ALCOHOL

BEVERAGES

-3.2% 6.7% 4.7% 2.7% 0.9%

 1990-

1995A

 1995-

2000A

2000-

2005A

2005-

2010E

2010-

2015E

At this point, the best estimate is a flat to slightly upward trend line for alcohol consumption when taking into 

account substitution of wine and distilled spirits drinking for beer drinking

Beer Excise Tax Collections

The amount of beer tax that is collected by TTB is directly related to domestic consumption. The tax on

imported beer is collected by CBP. In recent years, the amount of beer tax collected has ebbed and flowe

but remained within a moderately tight range

Going forward, beer will become more expensive to make and the consumer will likely see a price 

increase. Factors attributing to this include a more than 40 percent decline in the U.S. dollar (vs. Euro

UK Pound) over the past two years (e.g., ending in calendar year 2007), a 40 percent hike in the price o

barley, a 32 percent hike in the price of hops, and a 28 percent increase in the price of glass for bottles
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 27

So what impact will all of this have on consumption and by extension beer tax collection? Likely calendar 

year 2008 will end with beer tax collections falling within the historical range

Forecasts for the beer industry in 2008 include: 

•	The current trend of trading up (from economy brands to premium brands) will slow down. One woul

think this would hurt crafts and imports; however, it could end up being a positive thing in that drinkers 

trade down from the higher priced wine and spirits to craft beer and imports. Economy brands wil

likely prosper
28 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

•	Craft beers have been hit by the high commodity costs and a slowing economy.  Some question

for craft brewers going forward are, “Will the growing consumer trend of indulging in small luxuries 

continue?” and “If it does, is the brand equity and quality of craft beers strong enough to continue to 

grow the segment no matter what the economy dishes out?”

It would be difficult to predict beyond 2008 for beer tax collections. Based on past trends, the trend will

likely be relatively flat and range bound

Import of Malt Beverages

31 Gallon Barrels (1986 – 2006)

Beer

0

5,000

10,000

15,000

20,000

25,000

30,000

198619871988198919901991199219931994199519961997199819992000200120022003200420052006

Year

Volume

Beer
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 29

Domestic Malt Beverage Production

31 Gallon Barrels (1986 – 2006)

Domestic Production

170,000

172,000

174,000

176,000

178,000

180,000

182,000

184,000

186,000

1984198519861987198819891990199119921993199419951996199719981999200020012002200320042005

Year

Volume (000s)

Production

Distilled Spirits Excise Tax Collections

Based on historical trends, excise tax collections for distilled spirits are expected to increase as follows:

•	The projection for vodka is for a 2 to 3 percent annual increase

•	Projections for tequila are for a 3 percent increase,

•	Rum is one-half of one percent, and 

•	Specialty products should increase approximately 2 percent

Wine Excise Tax Collections

About 35 percent of U.S. adults drink wine.  The rest of the adult population either does not drink 

alcohol beverages, or prefer beer or distilled spirits.  The per capita consumption of wine consumers i

2007 was estimated by the Wine Market Counsel to be 3.07 gallons (15 - 750 ml bottles, or 1.25 case

per year).  Excise tax on domestic wine products accounts for less than 10 percent of the domestic alcoho

tax collected by TTB

The ratio of retail sales and consumption of domestic and imported wine in the early 1990s was typically 

85 percent domestic and 15 percent imported wine.  An increase in the importation of good quality

affordable wine from Italy, Australia, and South American countries has caused domestic wine sales to 

steadily lose ground to imported products

The ratio in 2006 was 74 percent domestic wine to 26 percent imported wine, according to the Adams 

Wine Report.  Analysts at the Unified Wine and Grape Symposium in January 2008 predicted that th

imported wine share of the market may have been as high as 31 percent in 2007.  It is expected that thi
30 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

trend will continue, as the volume of wine imported into the U.S. grows each year and the amount of win

produced domestically remains fairly steady

Wine Excise Tax Collections

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Fiscal Years

Million Dollars

Domestic

Imported

Total

Bonded Wine Premises Bonded Wine Premises

0

1,000

2,000

3,000

4,000

5,000

6,000

2001 2002 2003 2004 2005 2006 May-07
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 31

Moody’s Industry.Com – Wine Industr

According to Moody’s Industry.Com – Wine Industry (March 2007)

Fewer regulations are also helping vintners bolster bottom lines. Smaller wineries in particular have cashed in

on the consumer trend of shifting to premium 

priced wine

If the dollar continues to weaken further in coming years against most global currencies, this phenomenon 

will improve cost-competitiveness for domestic wine exports in key emerging markets in Asia, such as China, 

India, and Korea

Long-Term Outlook: Improving name recognition and rising wine consumption globally are the positive 

fundamentals driving the industry’s outlook. Wine is steadily gaining popularity among Americans, and

currently rivals beer as their most preferred alcoholic drink

The number of core wine drinkers—those who consume at least one glass of wine each week—has grown 

sharply since 2000 and now accounts for 17 percent of the total adult population and nearly 90 percent 

of wine consumption. Finally, the share of the core consumers in the population rises with age cohort, an

encouraging sign in an aging country. At the same time, wine consumption is becoming increasingly popular

with the millennial generation, which is nearly as large as their parent generation, the Baby Boomers. These

two cohorts together already form a very large demand base of core wine drinkers and offer significant 

potential for growth

Per capita consumption in the U.S. is still well below rates in Europe, suggesting potential for growth. As t

Baby Boomer generation moves into its fifties and sixties, its disposable income will rise. There is a good

likelihood that their demand for wine will rise as the economy improves, and their penchant for collecting 

luxury wines may increase as well

Longer term, the wine industry will benefit from the new millennial generation of wine drinkers that will 

hopefully pick up the mantle as baby boomers age. The oldest of this new large cohort, almost as big as the

baby-boomer cohort, are now in their early 20s, and 40 percent of this cohort are considered core wine 
32 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

drinkers. The challenge for the wine industry will be to deepen its attraction of marginal drinkers, who have

cut their consumption of wine over the past three years

The strategic threat of lower-cost wine with fruitier flavors from wineries in Australia, Chile, and South Africa 

is very real. Large wineries have reduced their exposure to this competition by acquiring properties in several

of these areas, but local growers and small vintners will continue to be pressured by the cheaper and 

consumer-friendly wines from the 

New World wineries

Upside Risks: The wine 

industry is making forays into 

several new markets, by rebranding. Success in these new

strategies would also boost wine 

consumption. A further departure

into higher priced wines by an 

adoring consumer base is also a 

possibility. Foreign markets also

present some upside potential as 

untapped consumer markets in 

China, Russia, Southeast Asia, 

and the Middle East blossom

Downside Risks: The most serious downside risk is from pestilence, specifically from the glassy-winged 

sharpshooter and its accompanying Pierce’s disease, or from the vine mealy bug. There have been no

significant pestilence problems reported thus far this season [2008], but this is a threat that bears watching

Over the very long run, gradual global climate shifts could pose a serious threat to [various areas of the] 

wine industry. Temperature and precipitation patterns are already ideal and even subtle shifts could disrupt

this delicate balance, with a potentially severe negative impact on the quantity and quality of wine produced 

in California

The weakening of the U.S. dollar in 2006 against most major currencies gave some support to the win

industry. In particular, the dollar has weakened relative to most of the domestic wine industry’s foreign

competitors, except Chile. This allowed U.S. wine exports to rebound sharply in 2006, after falling in t

previous year. The dollar is expected to continue depreciating against most currencies

The domestic wine industry is still enjoying a boom period, thanks to steady growth in consumer demand for 

wine. Robust demand growth has come despite acceleration in prices for wine, which has been a double

benefit to winemakers. With the housing market driving a broader economic slowdown, consumer spending

is expected to moderate in the near future. This will weigh on demand growth during this perio
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 33

Permit Applications

The number of new, or original, permit applications is a good indication of future business. The following

chart shows the growth in permits over recent years. New permit growth is offset somewhat by some industry

members going out of business. This is particularly true as it pertains to the craft beer industr

Permit Applications – Original and Amended

Fiscal Year Original

Permits

Amended 

Permits Total Percent Increase

2003 3,360 13,100 16,460 16%

2004 3,621 15,300 18,921 33%

2005 4,447 24,000 28,447 100%

2006 4,869 20,470 25,339 79%

2007 5,285 22,336 27,621 95%

2008 (P) 4,885 21,228 26,113 84%
34 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

APPENDIX B: Strengths, Weaknesses, 

Opportunities, and Threats (SWOT) Analysis

The Importance of Environmental Scanning

The previous sections provide a roadmap for aligning Treasury and TTB’s missions, performance goals, 

and measures. The environmental scanning section provides an understanding for potential possibilities

for organizational enhancement (Opportunities) and/or roadblocks (Threats) in achieving those goals. The

SWOT Analysis was developed as a result of work in several areas: 1) the Environmental Scanning section; 

2) the results of an Executive Management Meeting where workgroups of specialists/experts provided 

input/feedback for the SWOT Analysis; and 3) research performed by strategic planning personnel and 

interns; and 4) readily available studies and literature

Strengths

•	Continuance of interning, hiring, and training bright students and staff members for succession 

planning

•	Pay banding helps to maintain mission-critical employees

•	Strong IT department integrating new technological advancements as they evolve

•	Good reputation among other bureaus and the public as a prospering new Treasury bureau

—In an independent study in FY 2006, TTB was ranked as the tenth best place to work out of 

222 programs

—In the same study, TTB was ranked second as “family friendly” and sixth in its strategic 

management efforts

•	Accessible knowledge/information within and outside of the organization’s network

•	Highly motivated and focused management and staff

•	Fresh and innovative ideas for a newly founded Bureau

•	Experienced and well-trained personnel

—In-house and on-the-job training for the purpose of

•	 Brush-ups

•	 Internal techniques

•	Small bureau enhances fast response times

•	Regular staff meetings provide sound task distribution
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 35

•	Network provides a free-flow of information to all personnel at their fingertips

•	Managers and supervisors maintain an open-door, friendly environment for all employees

Weaknesses

•	Many experienced and well-trained mission-critical personnel are eligible for retirement

—Thirty percent of the Trade Investigations Division (TID) is currently eligible for retirement, 

including 57 percent of the District Directors and 100 percent of the Program Managers

—Forty-three percent of TID is eligible for retirement within 3 years; 52 percent within 5 years

—Full-time equivalent (FTE) resources in the future will include a need for the following areas 

where TTB is currently vulnerable:

•	 Criminal investigators

•	 Trade investigators

•	 Regulations specialists

•	 Lawyers, scientists, and other partners 

•	There have been significant increases in activities across the board at TTB since its inception; 

however, FTE levels have remained the same, which:

—Puts stress on the system

—Reduces in some instances TTB’s ability to serve its customers with the same outstanding results 

that TTB achieved in the past

•	Many CPA’s and other professional job classifications are difficult to maintain because of extensive 

travel schedules, etc

•	Performing statistically-valid compliance requires a greater need for resources

—More analytical resources

—A significant paradigm shift that, if implemented, may take away resources from referrals of 

non-compliance or possible criminal activities

•	As a small bureau, upward mobility among employees may be limited

•	Non-defense or non-bioterrorism organizations are under budgetary pressures

•	As a new bureau, IT platform requirements, etc. require funding that may not be available in the futur

•	Achieving needed regulatory and legislative requirements are often laborious, or non-existent

•	Need attachés for specific country expertise (e.g., Brussels, China, etc.) and with international tra

expertise
36 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

Opportunities

•	TTB’s reputation for its openness and honesty among Government and non-Government entities allows 

the organization to maintain strong networking that supports TTB’s results-oriented persuasion

•	TTB’s experienced personnel may place it in a position of strength should further business (social 

benefit) opportunities arise

•	Reciprocity with State authorities and interagency agreements allow TTB to leverage its resources

—Law enforcement and regulatory organizations

—State Alcohol Control Boards, etc

•	A strong IT group provides technical solutions to many of TTB’s FTE resource limitations

—Development of communication tools will provide TTB with effective and efficient means to 

collaborate internally and externally (e.g., SharePoint and GovDeliver

•	Pay.gov and other automated services provide opportunities to increase effectiveness and efficiencies

for TTB and its customers 

•	Determination of customer expectations will help TTB to establish standards and periodically reassess 

customer needs and requirements

•	Working toward fund sharing through the following programs will help offset TTB reliance on 

appropriations and will allow TTB to increase its presence in risk-induced areas:

—Treasury Forfeiture Fund

—Recovery cost of managing the FAET Program, which would require a statutory change

•	Establishing and pursuing a market-based labeling and advertising compliance verification program 

will help TTB close the loop in determining if industry members are actually compliant in the 

marketplace

•	TTB has an opportunity to increase voluntary compliance with results developed through education 

provided on TTB’s Web site, seminars, workshops, and Webcasts

•	The Federal Alcohol Administration (FAA) Act seminars help educate industry members

•	Publicizing successful enforcement cases will provide impetus for other non-compliant industry 

members to re-evaluate unacceptable behavior

•	Memoranda of Understanding (MOUs) with foreign countries to establish a point of contact on trade 

and regulatory issues

•	Harmonize standards (e.g., U.S. biggest import

•	Promote U.S. laws among international industries dealing with products regulated by TTB to ensur

that the international industries understand and respect U.S. law

•	TTB needs to work with other countries to ensure cooperation as TTB attempts to work around the 

political realities of other countries
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 37

•	TTB needs to consult with the U.S. Trade Representative in terms of what is important to the industry a

well as publicizing what is required to do business in other countries

•	TTB needs to develop and implement a Criminal Enforcement Program

•	TTB needs to establish a flexible organization that anticipates change and develops strategies to 

prepare for changes (e.g., tobacco, Alcohol Fuel Plants, excise taxes, etc

Threats

•	Terrorism requires that TTB be vigilant in metropolitan, as well as rural (e.g., Alcohol Fuel Plant

settings with limited resources to cover geographically-expansive areas

•	The lack of law enforcement agents reduces TTB’s effectiveness in many areas

•	Legal impediments slow down the process or keep TTB from performing some of its mission

•	Policy decisions require TTB to work without critical analytical tools (e.g., fingerprinting capabilitie

•	The identification of non-compliant advertising, especially as it relates to Internet advertising that is 

rising exponentially, is increasing in difficulty with limited resources

•	The need for laboratory services is increasing while FTEs and funding remains nearly the same

—The lab has $70,000 in funding for allergens in FY 2007 while the prospect for increased 

requirements is increasing significantly

—Varietal identification requires more global definition 

•	As a new and small organization, TTB must ensure its survival by consistently establishing its ability to 

show its unique strengths to perform its mission

•	TTB’s loss of knowledge, with mission-critical personnel potentially retiring over the next several years, 

may weaken its impact within the industries and Government management without clear succession 

planning

•	Continuous changes in business models will require constant vigilance

•	The laws that help TTB regulate the industry are often difficult to prove

•	Industry members are often unaware of regulatory requirements

•	TTB regulations need updating to ensure that industry members understand the 

most recent implementations
38 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

APPENDIX C: Cross-Cutting Activities 

 TTB has established Memoranda of Understanding (MOUs) with other Federal agencies, including: 

•	Bureau of Public Debt (BPD). TTB reached an agreement to franchise out its financial systems 

requirements to the Bureau of Public Debt’s Administrative Resource Center (BPD ARC), which uses an 

established Joint Financial Management Improvement Program (JFMIP) Oracle Financial System. In

addition, TTB franchised most of our personnel, procurement, partial budget, and e-travel functions

This partnership has resulted in cost savings to TTB, while helping ARC meet its revenue goals and 

expected customer satisfaction requirements

•	Food and Drug Administrations (FDA). TTB examines alcohol beverage labels and routinely 

tests product samples for compliance with laws and regulations. When label/product analysis

indicates a potential risk to public health or safety, immediate action is required. Any food product

(including an alcohol beverage) is considered adulterated under the Federal Food, Drug, and 

Cosmetic Act if it contains a poisonous or deleterious substance or an unapproved food additive

Contaminated alcohol beverages will be considered adulterated for purposes of the Food, Drug, 

and Cosmetic Act and subject to enforcement action by the FDA, as determined by TTB. Under the

terms of the MOU between the two agencies, TTB will notify the FDA when an adulterated alcohol 

beverage is encountered, request a health hazard assessment (as needed), seek a voluntary recall (as 

needed) and keep the FDA apprised of the situation.

•	U.S. Department of Agriculture (USDA). On October 21, 2002, the USDA finalized 

rules implementing the National Organic Program. This Program establishes national standards

for the production and handling of organically produced products, including alcohol beverages

Consequently, the USDA and TTB share in the regulatory control of alcohol products that bear an 

organic claim on their label. A recent MOU between the USDA and TTB establishes procedures

that allow for a timely concurrent review of these labels to ensure that they comply with all Federal 

labeling regulations

•	Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). TTB and ATF have 

signed an information-sharing MOU that gives both bureaus access to the information essential for the 

accomplishment of their programs. This includes investigations of diversion of alcohol and tobacco

products to avoid tax payment

Bureau personnel also work with other Federal and State agencies in the regulation of the alcohol 

and tobacco industries. For example:

•	U.S. Immigration and Customs Enforcement (ICE). The Homeland Security Act of 

2002 created this agency and U. S. Customs and Border Protection (CBP) within the Departmen

of Homeland Security to enforce U. S. customs law.  These agencies are now responsible f

enforcement and collection of tobacco excise taxes when tobacco products are in CBP’s custody. TTB

is coordinating its IRC tobacco enforcement activities with ICE and CBP enforcement of the Cigarette 

Smuggling Act of 2000
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 39

•	U. S. Customs and Border Protection (CBP). TTB also interacts with CBP in the area of 

alcohol and tobacco importation. TTB often provides CBP with confirmation that TTB has issued

a Certificate of Label Approval (COLA) for imported beverage alcohol products and that TTB has 

licensed individuals as alcohol or tobacco importers. TTB also verifies the authenticity or classification

of alcohol beverage products to ensure that the proper excise tax and duty rates are applied

TTB often consults with CBP to determine information about the importer of record for various alcohol 

and tobacco products and to verify if certain products have been imported into the United States. TTB

fills an important role, along with several other Federal agencies, in assisting CBP in the development 

of an integrated International Trade Data System (ITDS). This database provides a data tracking

mechanism instrumental to meeting the requirements of the Bioterrorism Act of 2002, which requires 

that we verify the authenticity of commercial goods being shipped into U.S. por

•	Office of the U.S. Trade Representative (USTR). In the area of U.S. trade policy, TT

works very closely with the USTR to create worldwide opportunities for economic development 

and technological progress. As part of a USTR interagency work group, TTB serves as technical

advisor and authority on U.S. alcohol beverage laws, regulations, and policy. In this capacity, T

provides assistance to the USTR in alcohol beverage and tobacco matters within the World Trade 

Organization Council on Trade-Related Aspects of Intellectual Property, its Technical Barriers to 

Trade Committee, and other groups. Through these activities, TTB assists the USTR in the worldwide

expansion of market access for U.S. goods and services, participates in trade-related intellectua

property protection issues, and assists in the negotiation of bilateral and multilateral free trade 

agreement issues related to wine and spirits.

•	Federal Trade Commission (FTC). The FTC and TTB have cross-jurisdictional authority in 

the area of beverage alcohol advertising. TTB has worked with the FTC on several occasions in

response to complaints about alcohol advertisements. TTB plans to expand its Advertising Enforcement

Program, which will provide ample opportunities for working together with the FTC.

•	Federation of Tax Administrators (FTA). The FTA represents State agencies that collect 

taxes. TTB attends FTA meetings that focus on the collection of excise taxes on alcohol and tobacco

products. During these meetings, TTB and representatives of the various State agencies share

information and foster relationships to improve efforts on the Federal and State levels to collect excise 

taxes that are rightfully due

•	National Association of State Attorneys General (NAAG). NAAG is the coordinator 

of the Master Settlement Agreements (MSA) concerning cigarettes and smokeless tobacco among the 

various State governments. Because NAAG is interested in collecting MSA payments from domestic

manufacturers and importers, TTB has provided domestic production and import information to 

NAAG, in accordance with the provisions of the IRC. TTB continues to offer assistance and provide

information to NAAG and the State governments

TTB will seek areas of similar activity, so that measures of performance can be compared across agencies
40 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

APPENDIX D: Program Evaluations

TTB uses internal and external program evaluations to validate performance measures, determine the 

effectiveness of our programs

Internal TTB Program Evaluations

The following TTB Internal program evaluations have been completed or are currently in progress at the time 

of this writing: 

•	Puerto Rico Operations, 

•	Tax Collection Activities, and 

•	American Viticultural Areas

Program Evaluations currently in process are:

•	Exports Verification (report writing stage), and

•	Adverse Actions (conducting field work)

•	Review of contractor recommendations listed below for “TTB Protect the Public Business Process 

Reengineering Study” (2005-2006)

External TTB Program Evaluations

The following external program evaluations and reviews have been completed:

•	TTB commissioned a contractor to perform a “National Revenue Center (NRC) Process Reengineering 

Study” that resulted in NRC’s major reorganization into mission areas for Collect the Revenue and 

Protect the Public (Completed June 2004)

•	TTB underwent a Program Assessment Rating Tool Review (PART) for the Collect the Revenue mission in 

FY 2005 and received an Effective (Highest) rating (Spring/Summer 2005)

•	 Office of Inspector General (OIG) reviewed TTB’s ability to break away from ATF’s ITD infrastructure 

and the risk model used for audit selection (2005)

•	 TTB commissioned an 8-A contractor to perform a “TTB Protect the Public Business Process 

Reengineering Study” (2005-2006)

In addition to various program evaluations, customer surveys gauge program impact and customer 

satisfaction with TTB services provided to industry and Government

TTB expects this level of program oversight and evaluation to continue through FY 2012 and beyond. The

Bureau also conducts periodic program and office reviews, which cover areas such as personnel, training, 

office security, quality, and quantity of investigations and audits, and internal controls
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 41

APPENDIX E: Environmental Assessment

TTB will use the American Customer Satisfaction Index (ACSI) Web survey for several programs to determine 

how well TTB meets the needs of our industry customers. Using the ACSI survey also allows TTB to

benchmark against the best in business and Government. TTB intends to conduct focus groups with industry

partners to assess what is needed to fully implement electronic Government

Triennial office reviews performed by TTB will include analysis of employee and customer satisfaction. TTB

conducts employee satisfaction surveys through the Federal Human Capital Survey. At the time of this writing,

the Treasury Department was constructing a Treasury-wide Human Capital Survey

TTB will evaluate and compile pertinent demographic, social, and other environmental information. TTB will

evaluate and use all of these elements to underpin the development of TTB’s Strategic Plan
42 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

APPENDIX F: TTB Organizational Chart

Administrator

Deputy

Administrator

Offi ce of Equal 

Employment Opportunity 

and Diversity 

Advancement

Offi ce of

Assistant 

Administrator

Field Operations

Offi ce of

Assistant 

Administrator

HQ Operations

Offi ce of

Assistant 

Administrator

Mgmt/CFO

Offi ce of 

Assistant 

Administrator

Information 

Resources / CIO

Offi ce of 

Inspection

Offi ce of 

Executive 

Liaison for 

Industry and 

State Matters

Offi ce of

Chief Counsel
Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012 43

APPENDIX G: TTB History

Department of the Treasury

Alcohol and Tobacco Tax and Trade Bureau (TTB)

History (1791 – Present)

Alcohol, Tobacco and Firearms Division (ATFD)

Internal Revenue Service

Department of the Treasury

1968 to 1972

Alcohol and Tobacco

Tax and Trade Bureau (TTB)

2003

Bureau of Alcohol, Tobacco, and Firearms (ATF)

Department of the Treasury

1972 to 2003

Alcohol & Tobacco Tax Division (ATTD)

Internal Revenue Service

Department of the Treasury

1952 to 1968

Alcohol Tax Unit (ATU)

Bureau of Internal Revenue

Department of the Treasury

1933 to 1952

Bureau of Industrial Alcohol

Department of the Treasury

1930 to 1933

Bureau of Prohibition

Department of the Treasury

1927 to 1930

Prohibition Unit

Bureau of Internal Revenue

Department of the Treasury

1920 to 1927

Miscellaneous Tax Unit

Bureau of Internal Revenue

Department of the Treasury

1862 to 1952

The United States Department of the Treasury and the first Federal taxes on distilled spirits were established in 1791

Bureau of Alcohol, 

Tobacco, Firearms, and 

Explosives Department 

of Justice

2003

Bureau of Prohibition

Department of Justice

1930 to 1934

Federal Alcohol 

Administration

Department of the 

Treasury

1935 to 1940

Federal Alcohol Control

Administration

1933 to 1935
44 Alcohol and Tobacco Tax and Trade Bureau Strategic Plan FY 2007–2012

For additional information regarding the TTB Strategic Plan, please contact:

Alcohol and Tobacco Tax and Trade Bureau

1310 G Street NW., Suite 300 East

Washington, DC 20220

Phone: 202-927-5000

E-mail: ttbquestions@ttb.gov

Visit us on the Web at www.TTB.gov.
TTB P 1995.05 (09/2008)