7526 Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 5 and 7 

[Docket No. TTB–2018–0007; T.D. TTB–176; 

Ref: T.D. TTB–158 and Notice Nos. 176 and 

176A] 

RIN 1513–AB54 

Modernization of the Labeling and 

Advertising Regulations for Distilled 

Spirits and Malt Beverages 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) is amending 

certain of its regulations governing the 

labeling and advertising of distilled 

spirits and malt beverages to address 

comments it received in response to a 

notice of proposed rulemaking, Notice 

No. 176, published on November 26, 

2018. On April 2, 2020, TTB finalized 

certain labeling amendments arising out 

of that proposed rule. This document 

finalizes the reorganization of, and 

addresses the remaining issues related 

to, the labeling of distilled spirits and 

malt beverages. Reorganizing the wine 

labeling regulations, and addressing the 

remaining labeling issues related to 

wine, as well as reorganizing and 

finalizing the regulations related to the 

advertising of wine, distilled spirits, and 

malt beverages, will be accomplished in 

future rulemaking. The regulatory 

amendments in this document will not 

require industry members to make 

changes to alcohol beverage labels or 

advertisements but instead provide 

additional flexibility to make certain 

changes going forward. 

DATES: This final rule is effective March 

11, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Christopher M. Thiemann or Kara T. 

Fontaine, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street NW, Box 

12, Washington, DC 20005; telephone 

202–453–2265. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. TTB’s Statutory Authority 

B. Notice No. 176 

C. T.D. TTB–158 

D. Scope of this Final Rule 

E. Issues That Are Outside of the Scope of 

This Final Rule 

F. Proposals Not Being Adopted 

II. Discussion of Specific Comments Received 

and TTB Responses 

A. Issues Affecting Multiple Commodities 

B. Amendments Specific to 27 CFR part 5 

(Distilled Spirits) 

C. Amendments Specific to 27 CFR part 7 

(Malt Beverages) 

D. Amendments of the Advertising 

Regulations 

E. Impact on Public Guidance Documents 

III. Derivation Tables for Finalized Parts 5 

and 7 

IV. Regulatory Analyses and Notices 

A. Regulatory Flexibility Act 

B. Executive Order 12866 

C. Paperwork Reduction Act 

V. Drafting Information 

List of Subjects 

Authority and Issuance 

I. Background 

A. TTB’s Statutory Authority 

Sections 105(e) and 105(f) of the 

Federal Alcohol Administration Act 

(FAA Act), 27 U.S.C. 205(e) and 205(f), 

set forth standards for the regulation of 

the labeling and advertising of wine, 

distilled spirits, and malt beverages 

(referred to elsewhere in this document 

as ‘‘alcohol beverages’’). 

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 of the Treasury (the Secretary) 

has delegated to the TTB Administrator 

various functions and duties in the 

administration and enforcement of this 

law through Treasury Department Order 

120–01. For a more in-depth discussion 

of TTB’s authority under the FAA Act 

regarding labeling, see Notice No. 176. 

B. Notice No. 176 

The TTB regulations concerning the 

labeling and advertising of alcohol 

beverages are contained in 27 CFR part 

4, Labeling and Advertising of Wine; 27 

CFR part 5, Labeling and Advertising of 

Distilled Spirits; and 27 CFR part 7, 

Labeling and Advertising of Malt 

Beverages. These 27 CFR parts are 

hereafter referred to as parts 4, 5, and 7, 

respectively. 

On November 26, 2018, TTB 

published in the Federal Register 

Notice No. 176 (83 FR 60562), 

‘‘Modernization of the Labeling and 

Advertising Regulations for Wine, 

Distilled Spirits, and Malt Beverages.’’ 

The principal goals of that proposed 

rule were to: 

• Make the regulations governing the 

labeling of alcohol beverages easier to 

understand and easier to navigate. This 

included clarifying requirements, as 

well as reorganizing the regulations in 

27 CFR parts 4, 5, and 7 and 

consolidating TTB’s alcohol beverage 

advertising regulations in a new part, 27 

CFR part 14. 

• Incorporate into the regulations 

TTB guidance documents and current 

TTB policy, as well as changes in 

labeling standards that have come about 

through statutory changes and 

international agreements. 

• Provide notice and the opportunity 

to comment on potential new labeling 

policies and standards, and on certain 

internal policies that had developed 

through the day-to-day practical 

application of the regulations to the 

approximately 200,000 label 

applications that TTB receives each 

year. 

TTB requested comments from the 

public and all interested parties on the 

regulatory proposals contained in 

Notice No. 176. TTB stated that it was 

particularly interested in comments that 

address whether the proposed revisions 

to the labeling and advertising 

regulations will continue to protect the 

consumer by prohibiting false or 

misleading statements and requiring 

that labels provide the consumer with 

adequate information about the identity 

and quality of the product. Where TTB 

proposed substantive changes, TTB 

sought comments on the proposals for 

further appropriate improvements. With 

respect to the few proposed changes in 

Notice No. 176 that might require 

changes in current labeling or 

advertising practices, TTB sought 

comments on the impact that the 

proposed changes would have on 

industry members and any suggestions 

as to how to minimize any negative 

impact. 

TTB also solicited comments from 

consumers, industry members, and the 

public on whether such changes would 

adequately protect consumers. Any 

regulatory proposals put forward by 

TTB on this issue would, of course, 

have to be consistent with the statutory 

requirements of the FAA Act. 

The comment period for Notice No. 

176 originally closed on March 26, 

2019, but was reopened and extended at 

the request of commenters (see Notice 

No. 176A, 84 FR 9990). The extended 

comment period ended on June 26, 

2019. TTB received and posted 1,143 

comments in response to Notice No. 

176. Commenters included trade 

associations, consumer and public 

interest groups, foreign entities, a 

Federally-recognized American Indian 

tribe, State legislators and members of 

Congress, industry members and related 

companies, and members of the public. 

The vast majority of comments 

addressed proposals relating to distilled 

spirits, with nearly 700 comments 

addressing the proposed amendment on 

the size and shape of oak barrels used 

to age distilled spirits. 


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TTB is also taking into consideration 

for purposes of this rulemaking earlier 

comments that were submitted to the 

Department of the Treasury in response 

to a Request for Information (RFI) 

published in the Federal Register on 

June 14, 2017 (82 FR 27212). The RFI 

invited members of the public to submit 

views and recommendations for 

Treasury Department regulations that 

could be eliminated, modified, or 

streamlined to reduce burdens. The 

comment period for the RFI closed on 

October 31, 2017. 

Eight comments on the FAA Act 

labeling regulations, which included 28 

specific recommendations, were 

submitted in response to the RFI. For 

ease of reference, TTB has posted these 

comments in the docket for this 

rulemaking. TTB is considering all of 

the relevant recommendations 

submitted in response to the RFI either 

as comments to Notice No. 176 or as 

suggestions for separate agency action, 

as appropriate. 

C. T.D. TTB–158 

On April 2, 2020, TTB published T.D. 

TTB–158 in the Federal Register (85 FR 

18704), which finalized certain 

proposals from Notice No. 176, and 

announced its decision not to move 

forward with certain other proposals. 

Generally, the amendments that TTB 

adopted in T.D. TTB–158 were wellsupported by commenters, could be 

implemented relatively quickly, and 

would either give more flexibility to 

industry members or help industry 

members understand existing 

requirements, while not requiring any 

current labels or advertisements to be 

changed. TTB did not incorporate the 

proposed reorganization of the 

regulations in T.D. TTB–158. Instead, 

amendments to the TTB regulations 

were made within the framework of the 

existing regulations. 

D. Scope of This Final Rule 

In this rulemaking, TTB is finalizing 

the reorganization proposed in Notice 

No. 176 for parts 5 and 7. This includes 

breaking up large existing sections into 

smaller sections to improve clarity and 

readability, resulting in a larger number 

of overall sections but not a larger 

number of regulatory requirements. TTB 

is also adopting many proposals that 

incorporate current policy into the 

regulations, providing improved 

transparency for industry and 

facilitating overall compliance. This 

final rule also addresses comments that 

TTB received on the proposed 

regulatory provisions for all of parts 5 

and 7 by incorporating changes in the 

regulations; announcing that TTB will 

not move forward with some proposed 

changes; and identifying proposals or 

issues raised that will be considered for 

future rulemaking. 

The document also includes 

liberalizing changes for distilled spirits 

or malt beverages that are either unique 

to a single commodity (such as the keg 

collar amendments, which are specific 

to malt beverages), or which largely 

bring the distilled spirits and malt 

beverage regulations into conformity 

with current policy already adopted for 

wine labeling (such as the liberalizing 

changes that allow information 

previously required to appear on a 

‘‘brand label’’ to appear anywhere on 

the container, as long as certain 

elements of mandatory information 

appear in the same field of vision). 

As previously indicated, this 

document does not contain any 

amendments that will require changes 

to distilled spirits or malt beverage 

labels or advertisements. 

TTB is also adopting clarifying and 

liberalizing changes that will remove 

certain outdated regulatory restrictions 

on labeling and otherwise allow 

additional flexibility in labeling 

requirements that were proposed in 

Notice No. 176. Examples include 

providing additional flexibility in 

allowing the labeling of kegs with ‘‘keg 

collars’’ and ‘‘tap covers’’ that are not 

firmly affixed to the keg under certain 

circumstances to facilitate the reuse of 

kegs by different brewers; and removing 

some outdated restrictions on the use of 

‘‘disparaging’’ statements on labels if 

such statements are truthful and nonmisleading. 

In this final rule, TTB is not amending 

the labeling or advertising regulations in 

part 4, which relate to wine. The 

comments on the proposed amendments 

to part 4 raised several issues that are 

unique to wine and require further 

analysis. Accordingly, TTB plans to 

address these issues in a future 

rulemaking, which will reorganize part 

4 in a manner similar to the way in 

which parts 5 and 7 are being 

reorganized. The future rulemaking on 

part 4 will also address the substantive 

issues raised by the commenters on the 

labeling and advertising of wine. At that 

time, TTB will also pursue the 

reorganization of the advertising 

regulations pertaining to wine, distilled 

spirits, and malt beverages in a new part 

14, as proposed in Notice No. 176. In 

the interim, existing policies will 

continue for wines. 

E. Issues That Are Outside of the Scope 

of This Final Rule 

TTB received some comments that 

either asked TTB to take action with 

regard to separate rulemaking projects 

or petitioned for rulemaking on specific 

issues. These comments are considered 

to be outside of the scope of this 

rulemaking but will be evaluated as 

suggestions for future rulemaking by 

TTB. 

1. Separate Rulemaking Initiatives 

In Notice 176, TTB identified several 

ongoing rulemaking initiatives related to 

the labeling and advertising of alcohol 

beverages that would be handled 

separately from the proposed rule, 

stating as follows: 

There are a number of ongoing rulemaking 

initiatives related to labeling and advertising 

of alcohol beverages that will be handled 

separately from this proposed rule due to 

their complexity. For example, this 

document does not deal with ‘‘Serving Facts’’ 

statements, an issue that was the subject of 

a 2007 notice of proposed rulemaking (see 

Notice No. 73, 72 FR 41860, July 31, 2007) 

and TTB Ruling 2013–2. Nor does TTB 

address its current policy requiring 

statements of average analysis on labels that 

include nutrient content claims. Industry 

members should continue to rely on TTB’s 

published rulings and other guidance 

documents on these issues. TTB’s policy on 

gluten content statements is still an interim 

one; therefore, that issue is not addressed in 

the proposed rule (see TTB Ruling 2014–2). 

Substantive changes to allergen labeling 

requirements are not addressed in this 

document. Standards of fill requirements are 

not addressed in this document but TTB 

plans to address them in a separate 

rulemaking document. 

Subsequent to the publication of 

Notice No. 176, TTB published Ruling 

2020–2, which put into place updated 

policy on gluten content statements. 

Accordingly, comments that TTB 

received on these issues will either be 

treated as suggestions for future 

rulemaking or as comments on other 

current rulemaking initiatives. 

a. Serving Facts and Allergen Labeling 

The Center for Science in the Public 

Interest (CSPI), the Consumer 

Federation of America, and the National 

Consumers League submitted a joint 

comment to the Secretary of the 

Treasury, which referenced prior 

rulemaking initiatives relating to 

‘‘Serving Facts’’ and allergen labeling. 

The comment asked the Secretary to 

instruct TTB: 

to withdraw the proposed rule and to issue 

a new proposal providing a mandatory, 

standardized declaration covering alcohol 

content by percentage and amount, serving 

size, calories, ingredients, allergen 

information, and other information relevant 

to consumers. This rule could be based on 

the prior regulatory dockets already 

underway and would provide much-needed 

closure to those considerable efforts. 


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TTB received many other comments 

urging the adoption of mandatory 

allergen labeling, mandatory ingredient 

labeling, and mandatory nutrient 

labeling. 

As noted above, TTB specifically 

identified these issues as being outside 

the scope of Notice No. 176. 

Accordingly, TTB will consider these 

comments as a suggestion for future 

rulemaking. 

b. Standards of Fill 

In Notice No. 176, TTB identified 

standard of fill requirements as being 

outside of the scope of this rulemaking, 

and explained that TTB planned to 

address standards of fill in a separate 

rulemaking document. However, Notice 

No. 176 included a proposal to address 

‘‘aggregate’’ standards of fill in a manner 

that is based on current policy. In 1988, 

TTB’s predecessor agency started 

permitting bottlers and importers of 

wine and distilled spirits products to 

use containers that did not meet a 

standard of fill provided that the nonstandard of fill containers were banded 

or wrapped together and sold as a single 

wine or distilled spirits product that, in 

total, met an approved standard of fill. 

For example, a wine or distilled spirits 

product sold in a package of thirty 25 

mL containers to meet an authorized 

standard of fill of 750 mL would be an 

aggregate package under this policy. 

While this type of aggregate packaging 

has been permitted for some time, TTB’s 

policy (which includes several 

conditions that must be met to qualify 

for treatment as an aggregate standard of 

fill) has not yet been codified in the 

regulations. In Notice No. 176, TTB 

proposed to codify the policy in the 

regulations, with certain revisions. 

In response to Notice No. 176, TTB 

received 79 comments regarding 

standards of fill. Only a few of these 

comments addressed aggregate 

standards of fill. Instead, the comments 

generally focused on whether standards 

of fill should be eliminated entirely, and 

if not, what new standards of fill should 

be added to the wine and distilled 

spirits regulations. Accordingly, TTB 

included these comments in the 

rulemaking docket for its separate 

rulemaking project that focused on 

standards of fill. 

On July 1, 2019, TTB published two 

notices of proposed rulemaking on 

standards of fill in the Federal Register. 

See Notice No. 182 (84 FR 31257) and 

Notice No. 183 (84 FR 31264). On 

December 29, 2020, after reviewing the 

comments received in response to these 

notices, as well as the 79 comments 

concerning standards of fill that were 

submitted in response to Notice No. 

176, TTB published in the Federal 

Register T.D. TTB–165 (85 FR 85514), 

which amended the regulations in parts 

4 and 5 to add seven new standards of 

fill for wine and distilled spirits. TTB 

also stated that it will conduct 

rulemaking to propose the addition of 

several new standards of fill for wine, 

including the 180, 300, 360, 550, 720 

milliliters, and 1.8 L sizes. 

TTB believes it would be premature to 

adopt final regulations on aggregate 

standards of fill before TTB, the 

industry, and the public have the 

opportunity to evaluate whether the 

expansion of the number of standards of 

fill available to industry members 

affects the merits of codifying in the 

regulations its aggregate standard of fill 

policy. Accordingly, while TTB will 

continue to enforce its current policy on 

aggregate standards of fill, it is not 

adopting regulations on this issue at this 

time, but will instead evaluate the need 

for further rulemaking on this question. 

c. Petition on Agency Guidance 

In response to Notice No. 176, TTB 

also received a petition from the New 

Civil Liberties Alliance requesting that 

the Treasury Department initiate a 

rulemaking process to promulgate 

regulations prohibiting any 

departmental component from issuing, 

relying on, or defending improper 

agency guidance. This petition is 

outside of the scope of Notice No. 176. 

d. Comments and Petitions on 

Standards of Identity for New Classes of 

Distilled Spirits Products 

TTB received several comments 

requesting the creation of new standards 

of identity for various distilled spirits 

products that TTB did not propose in 

Notice No. 176. For example, Privateer 

International asked that the regulations 

be amended to create a standard of 

identity for ‘‘Straight rum.’’ The 

comment stated that if TTB determined 

that the proposal was not within the 

scope of Notice No. 176, it should be 

considered as a petition under 27 CFR 

70.701(c). Other commenters requesting 

new standards of identity for various 

distilled spirits products included E&J 

Gallo Winery (for Superior Grape 

Brandy), Desert Door (for Sotol), the 

Irish Spirits Association (for Irish Cream 

Liqueur), and Domeloz Spirits (for 

Somel). 

After carefully reviewing these 

requests, TTB has determined that it 

would not be appropriate to move 

forward on any of these issues without 

first soliciting public comment on the 

proposed standards of identity. 

Accordingly, TTB will treat these 

comments as a request for further 

rulemaking and will evaluate them 

separately from this rulemaking. 

TTB also received comments in 

support of petitions that had previously 

been filed with TTB but were not 

incorporated into the proposed 

amendments in the notice. For example, 

the American Single Malt Whiskey 

Commission submitted a comment in 

which it renewed its petition to include 

‘‘Single malt whiskey’’ as a standard of 

identity in 27 CFR part 5. TTB received 

over 250 comments in support of this 

petition. Similarly, Singani63 submitted 

comments in support of a petition to 

establish a standard of identity for 

‘‘Singani,’’ and SpiritsNL submitted 

comments in support of a petition to 

establish standards of identity for 

‘‘Genever.’’ Because these issues were 

not specifically put forward for 

comment in Notice No. 176, the public 

and the industry were not given an 

opportunity to comment on the 

standards of identity suggested by the 

petitioners. TTB has determined that 

actions on these petitions would be 

premature without seeking public 

comment on the petitioned-for 

standards of identity. Accordingly, TTB 

will consider these comments for future 

rulemaking. 

2. Other Issues Outside of the Scope 

TTB also received comments on other 

topics that relate to regulatory 

provisions that are not in parts 4, 5, or 

7 (such as Internal Revenue Code 

reporting requirements) or issues that 

were not aired for comment (such as 

regulations on private labels). TTB will 

treat these comments as suggestions for 

future rulemaking. 

3. Label Approval Requirements 

TTB also sought comments on 

whether more significant changes to the 

label approval process, such as 

expanding the categories of optional 

information that may be revised without 

TTB approval or limiting the scope of 

TTB’s prior review of labels to certain 

mandatory information, should be 

considered. As noted earlier in this 

document, the FAA Act generally 

requires the submission of applications 

for label approval before bottlers or 

importers introduce their products into 

interstate commerce. As part of its label 

review process, TTB reviews both 

optional and mandatory information on 

labels. With regard to optional 

information, TTB’s main goal is to 

ensure that such information does not 

mislead consumers. 

While TTB received some comments 

with regard to the larger issue of ways 

to streamline the label approval process, 

TTB has determined that adoption of 


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any regulatory amendments in response 

to these comments is premature, 

without providing industry members 

and the general public with the 

opportunity to directly comment on 

such proposals. 

F. Proposals Not Being Adopted 

Some changes proposed in Notice No. 

176 were opposed by commenters who 

provided substantive comments 

suggesting that the proposed policies 

required changes to existing labels, 

required industry members to incur 

costs, or did not have the intended 

result within the purpose of the FAA 

Act. As a result, TTB is not finalizing 

the following proposals: 

• An amendment that proposed to 

clarify and somewhat expand existing 

requirements with regard to placing 

certain label information on closed 

‘‘packaging’’ of wine, distilled spirits, 

and malt beverage containers. 

• An amendment that proposed to 

clarify and expand current requirements 

that certain whisky products distilled in 

the United States must include the State 

of distillation on the label, by providing 

that a bottling address within the State 

does not suffice unless it includes a 

representation as to distillation. 

While the proposed amendments 

would have provided additional 

information to consumers, some 

comments suggested that each of these 

proposals might also impose regulatory 

burdens or costs on industry members. 

TTB has concluded that the rulemaking 

record before it does not provide an 

adequate basis for evaluating the costs 

and benefits of the proposed revisions. 

Accordingly, TTB is not moving forward 

with these proposals in this rulemaking 

but will instead clarify current 

requirements with regard to labeling 

requirements for products in sealed, 

opaque cartons and the labeling of 

certain whiskies with information 

regarding the State of distillation. TTB 

will consider amendments to current 

policies for future rulemaking. 

There were also some proposed 

clarifying changes that industry 

members interpreted as imposing new 

requirements, even where that was not 

the intent of the amendment. In several 

cases, TTB decided it was not necessary 

to adopt regulations on these issues. The 

failure to codify these policies does not 

represent a change in policy, but does 

reflect a determination by TTB that 

codification of these policies in the 

manner proposed by Notice No. 176 

could be confusing to the industry and 

the public. 

II. Discussion of Specific Comments 

Received and TTB Responses 

For ease of navigation, TTB is setting 

forth the issues and comments it is 

addressing in this document in the 

following order: Issues affecting 

multiple commodities; amendments 

specific to 27 CFR part 5 (distilled 

spirits); amendments specific to 27 CFR 

part 7 (malt beverages); and 

amendments to the advertising 

regulations. Within each discussion, the 

order reflects generally the order the 

sections appear in the finalized 

regulations, which will aid readers in 

comparing the explanations in the 

preamble with the subsequent section 

setting forth the regulatory text. 

The proposed changes from Notice 

No. 176 that were not addressed in T.D. 

TTB–158, and that are not addressed 

specifically in this preamble, are 

adopted without change in this final 

rule, and will not be discussed in this 

section. See Notice No. 176 for further 

information on those proposals. 

A. Issues Affecting Multiple 

Commodities 

1. Comments on the Need for 

Modernization and Reorganization 

TTB received numerous comments 

from industry members and trade 

associations supporting its overall goal 

to reorganize and recodify the labeling 

regulations to simplify and clarify 

regulatory standards; incorporate 

industry circulars, rulings, and current 

policy into the regulations; and reduce 

the regulatory burden on industry 

members where possible. A few 

industry members expressed support for 

the overall modernization of the current 

regulations. For example, a comment 

from Big Cypress Distillery called the 

proposed regulations ‘‘a most welcome 

and modernized improvement over the 

current regulations.’’ A comment from 

Altitude Spirits stated, ‘‘I think your 

updates and effort to modernize the 

regulations surrounding wine, beer, and 

spirits are a great idea and current 

regulations are in many cases in need of 

an update.’’ Roulasion Distilling 

Company commented that the proposed 

changes were generally ‘‘a great stride 

towards transparency and an 

improvement for many of my fellow 

producers.’’ 

Several trade associations also praised 

the overall modernization of the 

regulations. The comment from the 

Texas Whiskey Association, which 117 

other comments supported, stated that: 

In general, we are very supportive of the 

proposed changes. We think it clears up 

perceived ambiguities. We support a code for 

producers that results in more transparency 

and truthfulness for consumers. 

The Brewers Association (BA) noted 

that the incorporation of existing 

industry circulars, rulings, and policy 

‘‘is important to achieve greater 

understanding and compliance among 

members of the BA and the broader 

alcohol beverage industry.’’ The 

National Association of Beverage 

Importers (NABI) expressed its 

appreciation for the ‘‘structure and 

parallelism of the three parts.’’ Finally, 

Senator Charles Schumer expressed 

support for the ‘‘streamlining’’ of the 

regulations and urged TTB to finalize 

them. 

Heaven Hill Brands commended TTB 

for taking on this project, but also asked 

that TTB avoid taking a ‘‘piecemeal 

approach to modernization’’ by 

finalizing the proposed rule ‘‘in 

numerous’’ documents. BA urged TTB 

‘‘to sustain the momentum and 

complete the process initiated in Notice 

176.’’ Finally, some commenters, 

including the Distilled Spirits Council 

of the United States (DISCUS) and 

Senator John Kennedy, were more 

critical of the overall impact of the 

proposed rule as well as the wording of 

certain clarifying language, but 

supported certain regulatory 

amendments. 

TTB Response 

TTB agrees with the commenters who 

suggested that incorporating industry 

circulars and rulings into the 

regulations promotes transparency and 

consistency, and believes that 

transparency benefits both industry 

members and consumers. TTB also 

plans to move forward with the 

proposed reorganization and parallelism 

of the parts. TTB continues to believe 

that proposed reorganization of the 

regulations will make it easier for the 

public and industry members to find 

relevant regulations and to compare 

regulations in the three parts. 

TTB understands the concern that 

commenters expressed with regard to an 

approach that would result in numerous 

final rules. Nonetheless, for the reasons 

described earlier in this document, this 

final rule will reorganize only the 

labeling provisions in parts 5 (distilled 

spirits) and 7 (malt beverages). TTB 

believes it is important to resolve all of 

the outstanding labeling issues relating 

to distilled spirits and malt beverages in 

this document, while continuing to 

work on the some of the complex issues 

that pertain specifically to wine. The 

reorganization of the wine labeling 

regulations (in part 4) and the 

advertising regulations for wine, 

distilled spirits, and malt beverages (in 


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a new part 14) will not be addressed in 

this document, but will be addressed in 

the future. 

Accordingly, TTB plans to address the 

reorganization of the wine labeling 

regulations in a future rulemaking, 

which will reorganize part 4 in a 

manner similar to the way in which 

TTB is reorganizing parts 5 and 7, and 

which also will address the substantive 

issues raised by the commenters on the 

labeling and advertising of wine. At that 

time, TTB will also pursue the 

reorganization of the advertising 

regulations pertaining to wine, distilled 

spirits, and malt beverages in a new part 

14, as proposed in Notice No. 176. 

2. Subpart A—General Provisions 

a. Definitions 

In Notice No. 176, TTB proposed 

definitions for ‘‘certificate holder,’’ 

‘‘container,’’ ‘‘distinctive or fanciful 

name,’’ and ‘‘person’’ for consistency 

across the regulations for wine, distilled 

spirits, and malt beverages. 

Certificate holder: TTB proposed to 

add the definition of ‘‘certificate holder’’ 

to parts 4, 5, and 7 to read as follows: 

‘‘The permittee or brewer whose name, 

address, and basic permit number, plant 

registry number, or brewer’s notice 

number appears on an approved TTB 

Form 5100.31.’’ TTB received one 

comment on this proposal, from 

DISCUS, which expressed support for 

the addition of this definition to the part 

5 regulations, but suggested the 

elimination of the use of the term 

‘‘brewer’’ because ‘‘such references 

should be to a specific alcohol beverage 

category in its corresponding part.’’ 

TTB Response 

TTB believes that maintaining a single 

definition in the labeling regulations for 

all of the alcohol beverage commodities 

aids in understanding, particularly for 

the many industry members who engage 

in business in several alcohol beverage 

commodities. TTB also notes that the 

definitions of the term ‘‘certificate of 

label approval’’ in parts 4, 5 and 7, as 

amended by T.D. TTB–158, as well as 

the definition in part 13, which was not 

amended by T.D. TTB–158, currently 

refer to wine, distilled spirits, and malt 

beverages. Accordingly, TTB is 

finalizing the term ‘‘certificate holder’’ 

as proposed in parts 5 and 7. 

Container: TTB proposed to amend 

the definition of the term ‘‘container’’ in 

parts 4 and 7 and to add the definition 

to part 5 to replace the definition of the 

term ‘‘bottle.’’ The proposed rule 

defined ‘‘container’’ in parts 4 and 7 as 

any can, bottle, box with an internal 

bladder, cask, keg, barrel, or other 

closed receptacle, in any size or 

material, that is for use in the sale of 

wine or malt beverages, respectively, at 

retail. Aside from editorial changes, this 

differs from the current definitions in 

that it specifically incorporates a box 

with an internal bladder, sometimes 

referred to as a ‘‘bag in a box.’’ 

Because of the restrictions on the size 

of distilled spirits containers, the 

proposed definition in part 5 did not 

include references to barrels. 

Furthermore, because there are 

prescribed standards of fill for both 

wine and distilled spirits, the proposed 

definitions in parts 4 and 5 included a 

cross reference to those standard of fill 

regulations, to clarify that containers 

must be in certain sizes. 

TTB received one comment on these 

proposed amendments. DISCUS stated 

that while it recognized ‘‘that a 

definition including a broader range of 

packages is necessary and generally 

agree[d] with the proposed definition of 

‘‘container[,]’’ it urged that the 

definition include a cross-reference to 

proposed § 5.62 in order to clarify that 

a ‘‘closed receptacle’’ should ‘‘not be 

construed as including secondary and 

tertiary packaging.’’ 

TTB Response 

TTB is finalizing the definition of 

‘‘container’’ as proposed in parts 5 and 

7. Because of changes that are being 

made to the proposed amendment 

regarding closed packaging, which will 

be discussed in further detail in this 

document, TTB does not find it 

necessary to include the cross reference 

suggested by DISCUS. TTB is also 

making a minor change to the 

definition, by deleting the reference to 

internal bladders, so that the definition 

covers all boxes, regardless of whether 

they include a bladder. TTB notes that 

some boxes in use today do not include 

bladders. 

Distinctive or fanciful name: Under 

current regulations, the term 

‘‘distinctive or fanciful name’’ refers to 

a name that must be used on a distilled 

spirits label, when a statement of 

composition is required. A distinctive or 

fanciful name is optional on other 

distilled spirits or malt beverage 

products. A distinctive or fanciful name 

is also optional for wine, whether or not 

it bears a statement of composition. 

Current regulations use but do not 

define the term. 

Consistent with current policy and 

use of the term elsewhere in the 

regulations, TTB proposed to add a 

definition of ‘‘distinctive or fanciful 

name’’ to the definitions section of parts 

4, 5, and 7 for the first time to mean a 

descriptive name or phrase chosen to 

identify a product on the label. The 

proposed definition clarifies that the 

term does not include a brand name, 

class or type designation, statement of 

composition, or, in part 7 only, a 

designation known to the trade or 

consumers. 

Beverly Brewery Consultants 

supported the inclusion of the 

definition of ‘‘distinctive or fanciful’’ 

name in the regulations. However, the 

Brewers Association opposed the 

proposed definition of ‘‘distinctive or 

fanciful name,’’ stating that the 

definition, like other proposed changes 

to the class and type regulations, was 

‘‘based on longstanding concepts used 

in distilled spirits labeling and 

advertising regulations. These concepts 

are not generally understood by brewers 

and would necessitate many changes in 

existing labels and advertisements.’’ 

Instead, the Brewers Association 

requested that ‘‘TTB utilize the language 

currently found in § 7.24 to address 

class and type. If TTB sees the need to 

modify the current class and type 

regulations for beer, those issues should 

be address[ed] in a separate 

rulemaking.’’ 

TTB Response 

The Brewers Association commented 

that the proposed definition of the term 

‘‘distinctive or fanciful name’’ would 

require changes to labels. However, the 

proposed definition simply codifies 

current policy with regard to the 

meaning of this term, and thus would 

not require changes to approved labels. 

Furthermore, as previously noted, the 

requirement for a distinctive or fanciful 

name for certain malt beverages and 

distilled spirits is in current regulations, 

and the Brewers Association comment 

does not appear to object to the 

requirement that such a name appear on 

labels for certain malt beverages. See 

current §§ 7.24(a), 7.29(a)(7)(iii), and 

7.54(a)(8)(iii). 

With regard to the suggestion from the 

Brewers Association that TTB should 

not modify the current class and type 

regulations for beer, this comment will 

be discussed in further detail below in 

Section II.C.6.a. 

Person: TTB proposed to amend the 

definition of the term ‘‘person’’ in parts 

4, 5, and 7 by adding ‘‘limited liability 

company’’ to specifically reflect TTB’s 

current position that limited liability 

companies fall under the definition of a 

‘‘person.’’ TTB also removed the 

language pertaining to ‘‘trade buyer’’ 

that read ‘‘and the term ‘trade buyer’ 

means any person who is a wholesaler 

or retailer’’ from the definition of 

‘‘person’’ that was in part 5. The current 

definition of a ‘‘person’’ in part 7 did 


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not include the definition of a ‘‘trade 

buyer.’’ 

DISCUS commented that it supported 

the proposed definition of a ‘‘person’’ 

but urged that the definition of ‘‘trade 

buyer’’ (as any person who is a 

wholesaler or retailer) from the existing 

definition be retained in some manner 

in the labeling and advertising 

regulations, and that some definition of 

the term ‘‘retailer’’ be added. The 

DISCUS comment included a suggested 

mark-up of the proposed regulations in 

part 5, but it did not include regulatory 

language for this comment. 

TTB Response 

TTB removed the language pertaining 

to ‘‘trade buyer’’ from the definition of 

‘‘person’’ in part 5 because the term 

‘‘trade buyer’’ does not appear anywhere 

else in the part 5 regulations. The 

purpose of the ‘‘Definitions’’ section in 

each part is to define terms used 

elsewhere in that part. Accordingly, 

TTB is not adopting this suggestion 

from DISCUS. 

3. Subpart B—Certificates of Label 

Approval (for Distilled Spirits and Malt 

Beverages) and Certificates of 

Exemption From Label Approval (for 

Distilled Spirits) 

Notice No. 176 proposed a subpart B 

in parts 4, 5, and 7, which contained 

TTB’s regulations implementing the 

statutory requirement for COLAs (for 

wine, distilled spirits and malt 

beverages) and certificates of exemption 

(for wine and distilled spirits). Proposed 

subpart B also contained three sections 

grouped under the heading of 

‘‘Administrative Rules,’’ which set forth 

requirements for: (1) Presenting COLAs 

to Government officials; (2) submitting 

formulas, samples, and other 

documentation related to obtaining or 

using COLAs; and (3) applying for and 

obtaining permission to use 

personalized labels. TTB described 

these proposals in more detail in Notice 

No. 176, Section II.B.2. 

a. Explanation of What a Certificate of 

Label Approval (COLA) Authorizes 

In Notice No. 176, TTB proposed to 

reorganize for clarity the regulations 

implementing the statutory requirement 

for certificates of label approval 

(COLAs). TTB proposed to establish 

new §§ 4.22, 4.25, 5.22, 5.25, 7.22, and 

7.25 to set out these requirements. In 

these sections, TTB also proposed to set 

forth what a COLA does and does not 

authorize. This information does not 

appear in the current regulations. 

Specifically, the proposed regulations 

stated that a COLA, on an approved TTB 

Form 5100.31, authorizes the bottling of 

wine, distilled spirits, or malt beverages, 

or the importation of bottled wine, 

distilled spirits, or malt beverages, with 

labels identical to labels on the COLA 

or with changes authorized on the 

COLA or otherwise authorized by TTB. 

See proposed §§ 4.22(a), 4.25(a), 5.22(a), 

5.25(a), 7.22(a), and 7.25(a). The 

proposed regulations in paragraph (b) of 

each of the aforementioned sections 

provided that, among other things, a 

COLA does not: (1) Confer trademark 

protection; (2) relieve the certificate 

holder from its responsibility to ensure 

that all ingredients used in the 

production of wine, distilled spirits, or 

malt beverages comply with applicable 

requirements of the U.S. Food and Drug 

Administration (FDA) with regard to 

ingredient safety; or (3) relieve the 

certificate holder from liability for 

violations of the Federal Alcohol 

Administration Act (FAA Act), the 

Alcoholic Beverage Labeling Act 

(ABLA), the Internal Revenue Code 

(IRC), or related regulations and rulings. 

Proposed paragraphs (c) and (d) of the 

aforementioned sections discuss when a 

COLA must be obtained and how to 

apply for a COLA. 

The proposed revisions reflected the 

longstanding policy of TTB and its 

predecessor agencies. Furthermore, the 

COLA form (TTB Form 5100.31, 

Application for and Certification/ 

Exemption of Label/Bottle Approval), 

currently specifically provides that the 

issuance of a COLA does not confer 

trademark protection and does not 

relieve the applicant from liability for 

violations of the FAA Act, the ABLA, 

the IRC, or related regulations and 

rulings. TTB believed that adding this 

information to the regulations would 

clarify this position for the public and 

industry members. 

TTB received several comments in 

response to the proposed revisions. 

Some commenters, including 

WineAmerica and the United States 

Association of Cider Makers (USACM), 

supported the proposed language 

clarifying that the issuance of a COLA 

does not confer trademark protection or 

relieve the certificate holder from its 

responsibility to ensure that all of the 

ingredients used in the production of 

the alcohol beverage comply with 

applicable requirements of the FDA 

with regard to ingredient safety. Two 

commenters suggested revisions that 

would require more information on the 

COLA application regarding compliance 

with State law for appellations of origin. 

As previously indicated, however, some 

comments raised concerns about 

whether TTB was interpreting FDA 

regulations. TTB addressed these issues 

in T.D.TTB–158. 

However, TTB also received many 

comments in opposition to the language 

relating to liability under the FAA Act, 

ABLA, and the IRC. The Wine Institute 

made the following comment: 

Wine Institute is concerned about the 

language found in § 4.22(b)(3) and 

§ 4.25(b)(3), both of which indicate that a 

Certificate of Label Approval (COLA) does 

not relieve the certificate holder from 

liability for violations of the FAA Act, the 

Alcohol Beverage Labeling Act, the Internal 

Revenue Code, or related regulations and 

rulings. Wine Institute members rely on the 

COLA review process to confirm that they 

have placed information onto wine labels in 

compliance with the FAA Act, the Alcohol 

Beverage Labeling Act, the Internal Revenue 

Code, and related federal regulations and 

rulings. Wine Institute members understand 

it is their responsibility to ensure they have 

adequate substantiation to support the 

accuracy of information and claims made on 

labels. However, Wine Institute is concerned 

that § 4.22(b)(3), for wine bottled in the 

United States, and § 4.25(b)(3), for wine 

imported in containers, could be used as the 

basis for a permit enforcement action against 

a winery even when a label may have been 

approved in error by TTB. Wine Institute 

would like to better understand the 

implications for Wine Institute members with 

regard to this provision. 

DISCUS also urged TTB not to finalize 

proposed §§ 5.22(b) and 5.25(b), arguing 

that it is unnecessary to repeat the 

statement on the COLA form that the 

COLA did not convey trademark 

protection and making the following 

statement: 

We urge the Bureau to expressly state that 

the issuance of a COLA is confirmation of 

compliance with TTB’s labeling 

requirements. If TTB approves a label, 

misleading statements or representations 

should not be present on that label. TTB 

labeling specialists have reviewed the 

material and assessed it against the labeling 

regulations and decided whether or not to 

approve, as well as if any information needed 

to be changed. Suppliers need to be able to 

rely on TTB approval in this regard. 

The Vermont Hard Cider Company 

(VCC) urged TTB ‘‘not to render the 

Congressionally-mandated COLA 

process purely advisory and oppos[ed] 

any changes that undermine the legal 

certainty of an approved COLA.’’ 

Several commenters, including the 

American Distilled Spirits Association 

(ADSA) and an attorney representing 

the USACM, suggested that the 

revisions propose ‘‘to utterly destroy the 

certainty provided by [the] COLA, 

upending a system that has served both 

the public and the industry well and 

rendering the entire process advisory.’’ 

These comments suggested that it would 

violate due process to punish industry 

members for activity that was approved 

through the COLA process, and that the 


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appropriate remedy in such a situation 

would be to follow the label revocation 

procedures contained in part 13 of the 

TTB regulations. The comments 

acknowledged, however, that a COLA 

would not protect an industry member 

who put a product in a container that 

did not conform to the product 

described on the label. 

TTB Response 

TTB is finalizing §§ 5.22(a) and 

7.22(a) as proposed, with the clarifying 

changes that TTB has already adopted 

in T.D. TTB–158. These changes 

provide that an approved TTB Form 

5100.31 authorizes the bottling of 

distilled spirits covered by the COLA, as 

long as the container bears labels 

identical to the labels appearing on the 

face of the COLA, or labels with changes 

authorized by TTB on the COLA or 

otherwise (such as through the issuance 

of public guidance available on the TTB 

website at https://www.ttb.gov). 

The proposed regulatory amendments 

in §§ 5.22(b) and 7.22(b) were intended 

to clarify current policy, not change the 

effect of obtaining TTB approval of a 

COLA. TTB agrees that, subject to the 

conditions set forth on the COLA form 

itself, TTB’s approval of a COLA 

represents a decision by the Bureau that 

the approved label complies, on its face, 

with the requirements of the FAA Act, 

and industry members are entitled to 

rely upon that approval unless and until 

TTB takes appropriate action, under the 

provisions of 27 CFR part 13, to revoke 

the approval. TTB also agrees that such 

reliance would not be a willful violation 

of the FAA Act. 

As previously noted, the language in 

the proposed sections simply repeats 

language from the COLA form that 

explicitly sets forth the conditions of a 

COLA. Some commenters agreed that a 

COLA does not convey trademark 

protection, relieve the industry member 

from FDA requirements regarding 

ingredient safety, or relieve the industry 

member from liability for violations 

under the FAA Act arising from a 

situation in which the approved COLA’s 

language does not accurately describe 

the product in the container. 

Sections I and II of the COLA form 

expressly set out these limitations, 

advising that the form does not 

constitute trademark protection, and 

that the applicant must ensure that all 

of the information on the application is 

‘‘true and correct.’’ With regard to 

mandatory type size requirements under 

the regulations implementing both the 

FAA Act and ABLA, Section II of the 

COLA form also advises that TTB: 

does not routinely review submitted labels 

for compliance with applicable requirements 

for mandatory label information regarding 

type size, characters per inch or contrasting 

background. You must ensure that the 

mandatory information on the actual labels is 

legible and displayed in the correct type size, 

number of characters per inch, and on a 

contrasting background in accordance with 

the TTB labeling regulations, 27 CFR parts 4, 

5, 7, and 16, as applicable. TTB does reserve 

the right to review applications for 

compliance with these requirements and to 

return non-compliant applications. 

Thus, the COLA form itself expressly 

advises applicants that it is their 

responsibility to ensure that the type 

size of mandatory information complies 

with the regulatory requirements. 

Furthermore, Section V of the COLA 

form sets out certain ‘‘allowable 

revisions’’ that may be made to 

approved labels without obtaining a 

new COLA, subject to the condition that 

the new label ‘‘must be in compliance 

with the applicable regulations in 27 

CFR parts 4, 5, 7, and 16, and any other 

applicable provision of law or 

regulation, including, but not limited to, 

the conditions set forth in the 

‘Comments’ below.’’ TTB does not 

approve those revisions on an 

individual basis, and the industry 

member is responsible for ensuring 

compliance with the regulations and the 

conditions set forth in Section V. 

Finally, as explained in T.D. TTB– 

158, it is TTB’s position that if FDA 

advises TTB that it has determined that 

distilled spirits, wines, or malt 

beverages are adulterated under the 

Federal Food, Drug and Cosmetic Act 

(FD&C Act), then those beverages are 

also mislabeled within the meaning of 

the FAA Act, even if the bottler or 

importer of the product in question has 

obtained a COLA or an approved 

formula for the product in question. See 

Industry Circular 2010–8, dated 

November 23, 2010, entitled ‘‘Alcohol 

Beverages Containing Added Caffeine.’’ 

In such a situation, it is the 

responsibility of industry members to 

take appropriate action after TTB has 

notified them that their products are 

mislabeled as a result of a determination 

by FDA that the products are 

adulterated under the FD&C Act. 

Nonetheless, after carefully evaluating 

the comments, TTB has concluded that 

it will not move forward with the 

proposed §§ 5.22(b), 5.25(b), 7.22(b), 

and 7.25(b). In the final regulatory text 

below, these paragraphs are removed 

and paragraphs (c) and (d) of each 

section as proposed are finalized as 

paragraphs (b) and (c). While TTB 

intended the proposed revisions to be 

clarifying, the revisions instead caused 

confusion among the commenters. Thus, 

TTB will evaluate all of the comments 

on this issue as suggestions for further 

action to more clearly address these 

issues on the COLA form itself or in the 

regulations in 27 CFR part 13. 

TTB’s decision not to move forward 

with the proposed amendments does 

not represent any change in TTB’s 

current policy on this issue, and the 

limitations and conditions referenced 

above will continue to appear on the 

COLA form. 

b. COLA Requirements for Alcohol 

Beverages Imported in Containers 

In Notice No. 176, TTB proposed, 

consistent with current regulations, that 

wine, distilled spirits, and malt 

beverages, imported in containers, are 

not eligible for release from customs 

custody for consumption unless the 

person removing the products has 

obtained and is in possession of a 

COLA. The regulations allow importers, 

when filing TTB data electronically, to 

file with U.S. Customs and Border 

Protection (CBP) the COLA 

identification number(s) applicable to 

each such product in lieu of filing a 

copy of each COLA with CBP. See 

§§ 4.24(c), 5.24(c), and 7.24(c). Proposed 

§§ 4.25, 5.25, and 7.25, in addition to 

the provisions described above, state 

that importers must obtain a COLA 

before removing alcohol beverages in 

containers from customs custody for 

consumption. 

Beverly Brewery Consultants 

commented that proposed § 7.24, 

relating to COLA requirements for malt 

beverages imported in containers, was 

poorly organized and should be 

separated into two sections. 

TTB Response 

After reviewing the editorial 

suggestions from Beverly Brewery 

Consultants, TTB has decided that the 

proposed §§ 5.24 and 7.24 clearly 

communicate requirements relating to 

distilled spirits and malt beverages 

imported in containers, and there is no 

need to separate each section into two 

sections. Accordingly, these sections are 

finalized, but with minor changes to 

certain paragraphs discussed below. 

c. Transfer of COLAs 

Consistent with the FAA Act and 

current regulations, proposed §§ 4.24, 

5.24, and 7.24 provide that wine, 

distilled spirits, and malt beverages, 

imported in containers, are not eligible 

for release from customs custody for 

consumption unless the person 

removing the wine, distilled spirits, or 

malt beverages has obtained a COLA. 

The current regulations, as amended by 

the final rule facilitating the use of the 

International Trade Data System (ITDS) 


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(T.D. TTB–145, 81 FR 94186, December 

22, 2016), provide importers with two 

options for showing compliance with 

this requirement—they may file with 

CBP the identification number assigned 

to the approved COLA, or they may 

provide a copy of the COLA to CBP at 

the time of entry, as was the case prior 

to the ITDS amendments. 

As a general rule, only the importer to 

whom TTB issued a COLA may use that 

COLA to withdraw bottled alcohol 

beverages from customs custody for 

consumption. Other importers who 

intend to import the same distilled 

spirits, wine, or malt beverages are 

responsible for obtaining their own 

COLAs for such products, as approved 

labels bear the name and address of the 

importer who obtained the COLA for the 

product and who is responsible for 

compliance with the Federal labeling 

regulations as part of the mandatory 

information. An exception to this 

general rule is set forth in ATF Ruling 

84–3 (which modified ATF Ruling 83– 

6), which describes circumstances in 

which an importer may use a COLA 

issued to another importer. In general, 

an importer may use a COLA issued to 

another importer if: (1) The importer to 

which the COLA was issued has 

authorized such use, (2) each bottle or 

individual container bears the name (or 

trade name) and address of the importer 

to which the COLA was issued, and (3) 

the importer to which the COLA was 

issued maintains records of the 

companies it has authorized to use its 

certificate. 

When TTB amended §§ 4.40, 5.51, 

and 7.31 in T.D. TTB–145, it 

incorporated text to reflect the 

provisions of ATF Ruling 84–3 and 

provide that bottled wine, distilled 

spirits, or malt beverages may be 

released to an importer who is 

authorized by a COLA holder to import 

products covered by the COLA. 

Importers must provide proof of such 

authorization if specifically requested. 

TTB noted in T.D. TTB–145 that it did 

not supersede ATF Ruling 84–3 or its 

holding that the COLA holder, who is 

the importer identified on the COLA, 

remains responsible for the imported 

product and its distribution in the 

United States. 

Readers should note that these 

requirements apply only in situations in 

which a second importer wishes to use 

a COLA that was issued to the first 

importer, to obtain the release of 

products bearing labels that include the 

name of that first importer from customs 

custody. TTB regulations do not 

prohibit several different importers from 

obtaining a COLA for the same foreign 

wine, distilled spirits product, or malt 

beverage, as long as the name of the 

responsible importer appears on each 

label. 

Comments from Wine Institute and 

DISCUS questioned why the proposed 

regulations did not incorporate the 

language in our current regulations and 

the ATF Rulings about COLA holders 

authorizing other importers to remove 

from customs custody products covered 

by a COLA. Wine Institute noted that 

this principle seemed to be partially 

addressed, and suggested that the 

regulations be amended to refer to 

importations with the COLA holder’s 

authorization. DISCUS urged TTB to 

incorporate all of the provisions of ATF 

Ruling 84–3 into the regulations, stating 

that these provisions are critical to the 

proposed regulation. 

TTB Response 

As indicated by the comments from 

Wine Institute and DISCUS, TTB failed 

to fully incorporate the regulations 

finalized by T.D. TTB–145 into Notice 

No. 176. Accordingly, TTB is adopting 

the comments from Wine Institute and 

DISCUS to the extent that they reflect 

current provisions that TTB added to 

the regulations in 2016 by T.D. TTB–145 

regarding the use by one importer of 

another importer’s COLA under certain 

circumstances. It was not TTB’s intent 

to modify this policy. Accordingly, in 

this final rule, TTB is reinstating the 

language that allows an importer to use 

another importer’s COLA under certain 

circumstances. This final rule does not 

supersede ATF Ruling 84–3 or its 

holding that the COLA holder remains 

responsible for the imported product 

and its distribution in the United States. 

TTB is not adopting DISCUS’s 

suggestion that TTB amend the 

regulations to incorporate all of the 

requirements set forth in ATF Ruling 

84–3. TTB did not air that specific issue 

for comment in Notice No. 176, and 

TTB believes it would be beneficial to 

solicit public comments on the 

recordkeeping and other requirements 

associated with adopting such 

regulatory amendments. TTB will 

evaluate whether it should update the 

ruling in the future, and will treat the 

DISCUS comment as a suggestion for 

future rulemaking. 

d. COLA Requirements for Imported 

Alcohol Beverages Released ‘‘for 

Consumption’’ 

Subject to certain exceptions, the FAA 

Act makes it unlawful for anyone to 

remove ‘‘from customs custody, in 

bottles, for sale or any other commercial 

purpose, distilled spirits, wine, or malt 

beverages, respectively’’ unless the 

person has obtained and possesses ‘‘a 

certificate of label approval covering the 

distilled spirits, wine, or malt beverages, 

issued by the Secretary in such manner 

and form as he shall by regulations 

prescribe.’’ [Emphasis added.] See 27 

U.S.C. 205(e). That same law also 

provides that the substantive labeling 

requirements of the FAA Act apply to 

importers who ‘‘remove from customs 

custody for consumption, any distilled 

spirits, wine, or malt beverages in 

bottles . . .’’ [Emphasis added.] The 

FAA Act defines the term ‘‘bottle’’ to 

mean ‘‘any container, irrespective of the 

material from which made, for use for 

the sale of distilled spirits, wine, or malt 

beverages at retail.’’ See 27 U.S.C. 

211(a)(8). TTB and its predecessors have 

consistently interpreted these statutory 

provisions to mean that (1) a COLA is 

required for imported alcohol beverages 

in bottles only if they are released from 

customs custody for consumption in the 

United States, and (2) that for such 

consumption entries, a COLA is not 

required if the beverage is being 

imported for a purpose other than for 

sale or any other commercial purpose. 

NABI commented that the regulations 

in proposed §§ 4.24 and 4.25, 5.24 and 

5.25, and 7.24 and 7.25, should be 

revised to eliminate references to 

requiring COLAs before wine, distilled 

spirits, or malt beverages, respectively, 

are removed in containers from customs 

custody ‘‘for consumption,’’ and to 

instead include only a reference to 

removals for ‘‘sale or any other 

commercial purpose.’’ NABI stated that 

this revision would be consistent with 

the statutory language in 27 U.S.C. 

205(e), and that the language about 

removals for consumption was overly 

broad. 

TTB Response 

The final rule adopts the language of 

the proposed regulations on this issue. 

As explained above, TTB views the 

statutory requirements of the FAA Act, 

as implemented in the regulations since 

1936, as imposing two levels of inquiry. 

Initially, the substantive labeling 

requirements of the FAA Act, as well as 

the COLA requirements for alcohol 

beverages released from customs 

custody in containers, apply only to 

products released ‘‘for consumption’’ 

from customs custody. Within the 

category of products released for 

consumption, there is a subcategory of 

products that are exempt from the 

COLA requirement because they are 

being imported for a purpose other than 

sale or any other commercial purpose. 

Current TTB regulations at 27 CFR 

4.40(a), 5.51(a), and 7.31(a), as amended 

by T.D. TTB–145 (the final rule 

facilitating the use of ITDS) include this 


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structure, and the final rule also 

includes this regulatory text in 

§§ 4.24(d), 5.24(d), and 7.24(d). Thus, 

the exemption from the COLA 

requirement for products imported for a 

purpose other than sale or any other 

commercial purpose is in addition to, 

not instead of, the provision that applies 

the COLA requirements only to alcohol 

beverages removed ‘‘for consumption’’ 

in containers from customs custody. 

e. Electronic Filing of the COLA 

Identification Numbers 

The proposed and current regulations 

allow importers, when filing TTB data 

electronically with CBP along with the 

customs entry, to file the identification 

number of the valid COLA applicable to 

each such product in lieu of filing a 

copy of each COLA with CBP. See 

§§ 4.24(c), 5.24(c), and 7.24(c). 

NABI requested that TTB require only 

that approved COLAs be on file for CBP 

or TTB inspection, citing the time 

burden of entering each identification 

number for shipments that contain 

products covered by numerous COLAs. 

NABI stated that its recommendation is 

consistent with proposed regulations at 

27 CFR 4.27, 5.27, and 7.27, which 

require the importer to present a copy 

of the approved COLA upon request. 

TTB Response 

With regard to the electronic filing of 

the COLA identification numbers, in 

2016, TTB amended its regulations to 

provide for electronic filing of an entry 

with CBP, so that an importer files an 

identification number of the approved 

COLA when filing electronically, rather 

than submitting the COLA to customs. 

See T.D. TTB–145, 81 FR 94186, 

December 22, 2016. The importer must 

provide a copy of the COLA (either 

electronically or on paper) upon 

request. As stated in T.D. TTB–145, 

these requirements ensure compliance 

with the FAA Act at 27 U.S.C. 205(e), 

which requires, with respect to imports, 

that no person shall remove from 

customs custody, in bottles, for sale or 

any other commercial purpose, distilled 

spirits, wine, or malt beverages, without 

having obtained and being in possession 

of a COLA covering the products. This 

rule finalizes this aspect of §§ 5.24 and 

7.24 in a manner consistent with current 

regulations. 

TTB believes that submitting the 

identification numbers corresponding to 

COLAs that cover the products intended 

for removal from customs custody, 

represents the minimum requirement 

necessary to support compliance with 

label requirements and a level playing 

field for industry members. This 

approach also minimizes the number of 

importers TTB and/or CBP potentially 

would need to contact directly to 

identify the appropriate COLA intended 

to be used by the importer, which 

supports compliance without 

unnecessarily impeding the importation 

process. 

f. Formula Requirements—Cross-cutting 

27 CFR 5.28 and 7.28 

Specific formula requirements for 

certain types of beer and wine are found 

in TTB’s regulations under the IRC. See 

27 CFR part 24 for wine and part 25 for 

beer. For distilled spirits, the specific 

formula regulations are found in both 

the IRC regulations (part 19) and the 

FAA Act regulations (part 5). However, 

when reviewing applications for label 

approval, TTB often finds it necessary to 

obtain formulation information about 

certain products (including imported 

alcohol beverages) that are not 

otherwise subject to the specific formula 

requirements in the regulations. TTB 

requires industry members to obtain 

formula approval for certain unusual 

products to enable appropriate 

classification of the product and ensure 

that producers do not use prohibited 

ingredients in the product. 

Accordingly, current regulations in 

§§ 4.38(h), 5.33(g), and 7.31(d) authorize 

TTB to request more information about 

the contents of a wine, distilled spirits 

product, or malt beverage, but the 

language in part 7 is different from the 

language in parts 4 and 5. Sections 

4.38(h) and 5.33(g) provide that, upon 

request of the appropriate TTB officer, 

a complete and accurate statement of 

the contents of any container to which 

labels are to be or have been affixed 

shall be submitted. The regulations in 

§ 7.31(d) state that the appropriate TTB 

officer may require an importer to 

submit a formula for a malt beverage, or 

a sample of any malt beverage or 

ingredients used in producing a malt 

beverage, prior to or in conjunction with 

the filing of an application for a COLA. 

The type of product evaluation 

required for a particular product prior to 

issuance of a COLA depends on that 

product’s formulation and origin. TTB 

periodically updates its public guidance 

to include a list of the domestic and 

imported products for which TTB 

currently requires formulas or 

laboratory analysis prior to issuing a 

COLA. 

In Notice No. 176, TTB proposed to 

standardize the regulatory language in 

parts 4, 5, and 7 on this issue. 

Accordingly, proposed §§ 4.28(a), 

5.28(a), and 7.28(a) provided that the 

appropriate TTB officer may require a 

bottler or importer to submit a formula, 

the results of laboratory testing, and 

samples of the product or ingredients 

used in the final product, prior to or in 

conjunction with the review of an 

application for label approval. The 

proposed regulations also provided that 

TTB may request such information after 

the issuance of a COLA, or in 

connection with any product that is 

required to be covered by a COLA. 

Proposed §§ 4.28(b), 5.28(b), and 7.28(b) 

provided that, upon request of the 

appropriate TTB officer, a bottler or 

importer must submit a full and 

accurate statement of the contents of 

any container to which labels are to be 

or have been affixed, as well as any 

other documentation on any issue 

pertaining to whether the wine, distilled 

spirits, or malt beverage is labeled in 

accordance with the TTB regulations. 

Current TTB regulations and industry 

practice involve the submission of 

alcohol beverage formulas in varying 

forms and formats depending on the 

type of alcohol beverage and whether 

the product is domestically produced or 

imported. TTB believes that this 

multiplicity of procedures is 

unnecessarily complicated and 

burdensome for both the regulated 

industries and TTB. Accordingly, TTB 

proposed in Notice No. 176 to amend 

the TTB regulations in parts 4, 5 and 7 

to provide that industry members may 

file a formula electronically by using 

Formulas Online or submitted on paper 

on TTB Form 5100.51, ‘‘Formula and 

Process for Domestic and Imported 

Alcohol Beverages.’’ TTB notes that the 

vast majority of industry members now 

use Formulas Online to submit 

formulas, and encourages all industry 

members to consider the advantages of 

online filing. 

WineAmerica and the New York Farm 

Bureau commented in support of 

‘‘formula standardization for ease of 

submission and approval.’’ A law 

student commented in favor of requiring 

more formulas to safeguard the health of 

consumers. However, some commenters 

raised concerns that the proposed 

regulations were too broad. For 

example, Wine Institute commented 

that proposed § 4.28(b), as drafted, 

attempted to expand TTB’s authority to 

demand information from wineries 

outside of a formal investigation, and 

also noted that bottlers of wine may not 

always have complete information about 

the ingredients in formula wine 

produced by other wineries. 

Some commenters focused on 

differences in laboratory analysis 

requirements for imported alcohol 

beverages. The Mexican Chamber of the 

Tequila Industry and DISCUS both 

noted that under current TTB policy 

(which is not addressed in the current 


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or proposed regulations), formulas for 

domestic products have no expiration 

date, while formulas for imported 

products expire after 10 years. They 

both urged TTB to eliminate the 

expiration date for imported products 

and to relieve formula requirements 

regarding samples. They also disagreed 

with granting authority to request 

formulas, laboratory testing, or samples 

for products that are not specifically 

required to submit formulas, noting that 

the formulation of alcohol beverages is 

often a closely guarded trade secret. 

Similarly, Federation des Exportateurs 

de Vins & Spiritueux de France (FEVS) 

commented in support of all the efforts 

made by TTB to simplify and streamline 

the pre-COLA evaluation process, 

especially for imported products, and 

stated that it understood the need for 

TTB officers sometimes to get more 

information on a specific product on a 

case-by-case basis. However, FEVS 

encouraged TTB to consider the 

economic costs and administrative 

burdens involved with formula and 

other pre-COLA analysis, and asked 

TTB to not define stricter ‘‘Pre-COLA 

Evaluation modalities for imported 

products than those required for 

domestic products of the same 

category.’’ As an example, FEVS 

questioned why a laboratory analysis is 

still required for imported flavored 

distilled spirits while domestic 

producers only have to obtain the 

approval of their formulas. FEVS stated 

that this situation creates extra costs and 

complexity for European Union (EU) 

exporters, and that these burdens were 

not justified because these products are 

also well regulated under the EU 

framework. 

TTB Response 

TTB is moving forward with its 

proposal to standardize in parts 5 and 

7 the regulatory language regarding 

TTB’s authority to require the 

submission of formulas, laboratory 

testing results, or samples as part of the 

label approval process. This is 

consistent with current policy and 

reflects the need to sometimes request, 

on a case-by-case basis, more 

information about a particular product 

prior to approval of a label. The final 

rule also standardizes the language 

found in the current distilled spirits 

regulations, which authorize TTB to 

require a full and accurate statement of 

the contents of the container. TTB is 

finalizing the clarifying language from 

the proposed rule, which provides that 

this authority applies after the issuance 

of a COLA, or with regard to any 

distilled spirits or malt beverages 

required to be covered by a COLA. 

After reviewing the comments on the 

issue of whether the additional language 

in proposed §§ 5.28(b) and 7.28(b) 

reflected an intention by TTB to expand 

its authority to require information 

about products, TTB has revised the 

language to mirror more closely the 

language found in the current 

regulations. Thus, to avoid any 

confusion on this issue, the final rule 

does not include language about 

submission of other documentation at 

the time of formula submission relating 

to whether the alcohol beverage 

products comply with labeling 

regulations, although this change does 

not reflect a shift in current TTB policy 

regarding its authority require such 

information. 

Finally, with regard to the 

commenters who requested that 

imported and domestic products be 

subject to the same requirements 

relating to formulas and laboratory 

analysis, TTB notes that it did not 

specially address the issues raised in the 

current or proposed regulations. As 

explained in Industry Circular 2020–1, 

dated February 12, 2020, TTB currently 

maintains guidance documents on its 

website, https://www.ttb.gov, which set 

forth current formula and laboratory 

analysis requirements. TTB periodically 

updates that list to reflect changes in 

TTB policy. 

TTB will consider the comments on 

this issue as suggestions for future 

changes to its policy. However, it has 

been the position of TTB and its 

predecessor agencies that because TTB 

does not have access to the production 

records of foreign producers, it must 

rely upon the importer, whose basic 

permit is conditioned upon compliance 

with the FAA Act, to provide the 

necessary information at the time of 

importation. For this reason, the 

formula and laboratory analysis 

requirements for imported products may 

sometimes differ from those imposed on 

domestic products of the same class and 

type. TTB is continually reviewing its 

formula and laboratory analysis 

requirements to determine if it can 

reduce burdens on the regulated 

industry while fulfilling its statutory 

mission to protect consumers. The final 

rule allows TTB the flexibility to 

liberalize such requirements without 

engaging in rulemaking each time it 

removes a formula requirement under 

the FAA Act. 

4. Subpart C—Alteration of Labels, 

Relabeling, and Adding Information to 

Containers 

Proposed subpart C of parts 4, 5, and 

7 regulates the alteration of labels, 

relabeling, and the addition of 

information to wine, distilled spirit, and 

malt beverage labels for which TTB has 

already issued a COLA. As stated in 

Notice No. 176, these regulations are 

intended to implement the prohibition 

in section 105(e) of the FAA Act (27 

U.S.C. 205(e)) that prohibits any person 

from altering, obliterating, or removing 

any mark, brand, or label except as 

authorized by Federal law or regulations 

implemented by the Secretary. 

As previously noted, the COLA 

requirements of the FAA Act are 

intended to prevent the sale or shipment 

or other introduction in interstate or 

foreign commerce of distilled spirits, 

wine, or malt beverages that are not 

bottled, packaged, or labeled in 

compliance with the regulations. To 

ensure that products with proper labels 

are not altered once such products have 

been removed from bond, section 105(e) 

of the FAA Act (27 U.S.C. 205(e)) makes 

it unlawful for ‘‘any person to alter, 

mutilate, destroy, obliterate, or remove 

any mark, brand, or label upon distilled 

spirits, wine, or malt beverages’’ that are 

held for sale in interstate or foreign 

commerce, or are held for sale after 

shipment in interstate or foreign 

commerce, unless authorized by Federal 

law or pursuant to regulations allowing 

relabeling for purposes of compliance 

with either the FAA Act or State law. 

Regulations that implement these 

provisions of the FAA Act, as they relate 

to wine, distilled spirits, and malt 

beverages, are set forth in parts 4, 5, and 

7, respectively. Current §§ 4.30 and 7.20 

provide that someone wanting to relabel 

must receive prior written permission 

from the appropriate TTB officer. 

Current § 5.31 does not require prior 

written approval for the relabeling of 

distilled spirits, as long as such 

relabeling is done in accordance with an 

approved COLA. 

As described in more detail below, 

proposed subpart C of parts 4, 5, and 7, 

proposed conforming changes to the 

regulations that: (1) Implement the 

statutory prohibition discussed above; 

(2) set out the provisions allowing for 

relabeling without TTB authorization; 

(3) set out the provisions allowing for 

relabeling only with TTB authorization; 

and (4) provide for the use of stickers to 

identify the wholesaler and retailer. 

a. Alteration of Labels 

Proposed §§ 4.41(a), 5.41(a), and 

7.41(a) set forth the statutory 

prohibition under 27 U.S.C. 205(e) on 

the alteration of labels. The proposed 

language provided that the prohibition 

applies to any persons, including 

retailers, holding wine, distilled spirits, 

or malt beverages for sale in (or after 


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shipment in) interstate or foreign 

commerce. 

Proposed §§ 4.41(b), 5.41(b), and 

7.41(b) provided that for purposes of the 

relabeling activities authorized by this 

subpart, the term ‘‘relabel’’ includes the 

alteration, mutilation, destruction, 

obliteration, or removal of any existing 

mark, brand, or label on the container, 

as well as the addition of a new label 

(such as a sticker that adds information 

about the product or information 

engraved on the container) to the 

container, and the replacement of a 

label with a new label bearing identical 

information. 

Proposed §§ 4.41(c), 5.41(c), and 

7.41(c) contained new language that 

provides that authorization to relabel in 

no way authorizes the placement of 

labels on containers that do not 

accurately reflect the brand, bottler, 

identity, or other characteristics of the 

product; nor does it relieve the person 

conducting the relabeling operations 

from any obligation to comply with the 

regulations in this part and with State 

or local law, or to obtain permission 

from the owner of the brand where 

otherwise required. 

TTB received four comments of 

general support for proposed §§ 4.41, 

5.41, and 7.41 from Beer Institute, 

Heaven Hill Brands, Wine Institute, and 

DISCUS. However, DISCUS stated that 

alteration of labels should only be done 

with the COLA holder’s approval. 

TTB Response 

TTB is finalizing proposed §§ 5.41 

and 7.41 without change. These 

regulatory provisions implement the 

statutory language in a clearer manner 

than the current regulations. With 

regard to the DISCUS comment, TTB 

notes that §§ 5.41(c) and 7.41(c) 

explicitly provide that authorization to 

relabel under this subpart does not 

authorize the placement of labels on 

containers that do not accurately reflect 

the brand, bottler, or other 

characteristics or the product, nor does 

it relieve the responsible person from 

any obligation to comply with the TTB 

regulations and with State or local law, 

or to obtain permission from the owner 

of the brand where required under other 

laws. TTB believes this provision 

adequately addresses the concerns 

raised by the DISCUS comment. 

b. Authorized Relabeling Activities 

Without Prior Authorization From TTB 

The current regulations in parts 4 and 

7 require persons wishing to relabel to 

obtain written permission from TTB, 

with certain exceptions, while the 

regulations in part 5 require persons 

wishing to relabel to obtain a COLA 

from TTB. TTB proposed to update the 

regulations in parts 4, 5 and 7 for 

consistency, and to cover all of the 

situations in which people need to 

relabel. The current regulations in part 

5 allow persons who are eligible to 

obtain COLAs, such as bottlers and 

importers, to relabel the covered 

products even after their removal from 

bottling premises or customs custody, 

respectively, without first obtaining 

written approval from TTB. The 

proposed rule extended this provision 

to parts 4 and 7. 

Accordingly, the proposed regulations 

provided that proprietors of bonded 

wine premises, distilled spirits plant 

premises, and breweries, may relabel 

domestically bottled products prior to 

their removal from, and after their 

return to bond at, the bottling premises, 

with labels covered by a COLA, without 

obtaining separate permission from TTB 

for the relabeling activity. See proposed 

§§ 4.42(a), 5.42(a), and 7.42(a). 

The proposed regulations also 

provided that proprietors of bonded 

wine premises, distilled spirits plant 

premises, and breweries, may relabel 

domestically bottled products after 

removal from the bottling premises with 

labels covered by a COLA, without 

obtaining separate permission from TTB 

for the relabeling activity. This would 

allow, for example, a brewer to replace 

damaged labels on containers held at a 

wholesaler’s premises, as long as a 

COLA covers the labels, without 

obtaining separate permission from TTB 

to remove the existing labels and 

replace them with either identical or 

different approved labels. See §§ 4.42(b), 

5.42(b), and 7.42(b). 

The proposed regulations also 

provided that, under the supervision of 

U.S. customs officers, imported wine, 

distilled spirits, and malt beverages, in 

containers in customs custody may be 

relabeled without obtaining separate 

permission from TTB for the relabeling 

activity. Such containers must bear 

labels covered by a COLA when the 

products are removed from customs 

custody for consumption. See §§ 4.42(c) 

and (d), 5.42(c) and (d), and 7.42(c) and 

(d). 

TTB received several comments of 

strong support in response to TTB’s 

efforts to bring consistency to the 

relabeling rules between wine, distilled 

spirits, and malt beverages from NABI, 

Heaven Hill Brands, the Beer Institute, 

ADSA, WineAmerica, and the New York 

Farm Bureau. 

In their comments, WineAmerica and 

the New York Farm Bureau noted that 

these proposals would reduce the 

regulatory burden with regard to wine. 

Heaven Hill Brands and ADSA 

expressed support for equal treatment 

with regard to relabeling activities 

between wine, distilled spirits, and malt 

beverages. NABI stated its appreciation 

for provisions that allow importers to 

relabel products without separate 

permission. The Beer Institute 

recommended ‘‘that TTB allow 

additional flexibility in the proposed 

rule so that ‘authorized agents’ (such as 

distributors or co-packers) of breweries 

and importers are also authorized to 

make such changes without having to 

obtain approval from TTB.’’ 

TTB Response 

TTB is finalizing §§ 5.42, and 7.42 as 

proposed, with the modification that a 

domestic proprietor who enjoys these 

privileges must also be the certificate 

holder for the COLA (which, in the case 

of domestically bottled products, would 

be the bottler). 

In response to the comment from Beer 

Institute, which suggested allowing 

relabeling by ‘‘authorized agents’’ of the 

COLA holder, TTB notes that nothing in 

the regulation precludes COLA holders 

from using either employees or 

‘‘authorized agents’’ to physically 

conduct relabeling activities, as long as 

the relabeling is being done at the 

direction of the COLA holder. To clarify 

this point, the regulatory text in sections 

7.42(b) and 5.42(b) is revised to provide 

that proprietors may relabel (or direct 

the relabeling of) domestically bottled 

products after removal with labels 

covered by a COLA, without obtaining 

separate permission from TTB for the 

relabeling activity, provided that the 

proprietor is the certificate holder (and 

bottler). 

c. Relabeling Activities That Require 

Separate Written Authorization 

In Notice No. 176, TTB stated that the 

language in current parts 4 and 7 allow 

persons who are not eligible to obtain 

COLAs, such as retailers, to obtain 

written permission from TTB to relabel 

products that are in the marketplace 

when unusual circumstances exist. The 

proposed rule extended this provision 

to part 5. It is rare that someone other 

than the original bottler or importer will 

need to relabel the product, but these 

situations sometimes occur. For 

example, sometimes bottles packed in a 

shipping carton break, causing damage 

to labels of unbroken bottles. 

Thus, the proposed regulations 

allowed persons who are not eligible to 

obtain a COLA (such as retailers or 

permittees other than the bottler) to 

obtain written authorization for 

relabeling if the request demonstrates 

that the relabeling was for the purpose 

of compliance with the requirements of 


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this part or of State law. The proposed 

regulations provided that the written 

application must include copies of the 

original and proposed new labels; the 

circumstances of the request, including 

the reason for relabeling; the number of 

containers to be relabeled; the location 

where the relabeling will take place; and 

the name and address of the person who 

will be conducting the relabeling 

operations. 

TTB intended that the proposed 

regulations enable permittees, brewers, 

and retailers to relabel alcohol beverage 

containers in the marketplace when 

there is a permissible reason to do so. 

TTB sought comments from industry on 

whether the proposed regulations would 

protect the integrity of labels in the 

marketplace without imposing undue 

burdens on the industry. 

WineAmerica, NABI, Heaven Hill 

Brands, Williams Compliance and 

Consulting Group (the Williams Group), 

Wine Institute, and DISCUS expressed 

general support for these provisions. 

In its comment, Heaven Hill Brands 

expressed support for equal treatment 

between wine, distilled spirits, and malt 

beverage regulations. In addition to 

providing their support for the proposed 

regulations, Wine Institute and DISCUS 

suggested that any persons engaged in 

relabeling who are not eligible to obtain 

a COLA (retailers, wholesalers, or 

proprietors other than the bottler) 

should be required to obtain 

authorization from the COLA holder in 

addition to written authorization from 

TTB. DISCUS commented that its 

suggested ‘‘revision will provide greater 

certainty to industry members regarding 

their brand equity and the power to 

control what happens to their brand 

labels once in the marketplace.’’ 

TTB Response 

TTB is finalizing proposed §§ 5.43 

and 7.43 with the clarification that those 

who must obtain written authorization 

to relabel distilled spirits and malt 

beverages are wholesalers and 

permittees other than the original 

bottler, not retailers. In response to 

DISCUS’s concerns about the power of 

producers to control what happens to 

their brand labels once in the 

marketplace, and the comments from 

Wine Institute and DISCUS requesting 

that TTB require that persons 

performing relabeling activities obtain 

COLA holder approval, TTB is only 

authorizing permittees (wholesalers and 

proprietors other than the original 

bottler) to apply for authorization to 

relabel; however, TTB is not requiring 

that the applicant first obtain approval 

from the COLA holder. Adopting the 

comments from Wine Institute and 

DISCUS that TTB should require the 

person performing the relabeling 

activities to obtain authorization from 

the original COLA holder would be 

more restrictive than current 

regulations, and was not specifically 

aired for comment. TTB notes that 

distillers are also subject to the 

relabeling regulations under the IRC in 

27 CFR part 19, which require 

proprietors to retain a statement of 

authorization to relabel products that 

they did not originally bottle; there is no 

such requirement for wine under the 

IRC regulations in 27 CFR part 24. 

d. Adding a Label or Other Information 

to a Container That Identifies the 

Wholesaler, Retailer, or Consumer 

Consistent with current regulations 

for wine and distilled spirits, and an 

intention to liberalize regulatory 

requirements for malt beverages, TTB 

proposed to allow the addition of a label 

identifying the wholesaler, retailer, or 

consumer as long as the label does not 

reference the characteristics of the 

product, does not violate the labeling 

regulations, and does not obscure any 

existing labels. The proprietor may add 

information identifying the wholesaler, 

retailer, or consumer before the wine, 

distilled spirit, or malt beverage leaves 

the premises. The wholesaler, retailers, 

or an agent may make such additions of 

information prior to the release of a 

product from customs custody. See 

proposed §§ 4.44, 5.44, and 7.44. 

NABI, Heaven Hill Brands, Wine 

Institute, and DISCUS expressed 

support for proposed §§ 4.44, 5.44, and 

7.44. In addition to expressing support, 

Wine Institute requested that any 

alteration of the label be conducted only 

with the authorization of the COLA 

holder and indicates that consumers 

could be confused about such stickers. 

TTB Response 

TTB will finalize §§ 5.44 and 7.44 

without change. In response to Wine 

Institute’s request that authorization 

from the COLA holder should be 

required prior to any alteration of a 

label, TTB notes that the proposal is 

consistent with current regulation, and 

that under this section, only information 

regarding the wholesaler, retailer, or 

consumer is being applied to the 

container (rather than the replacement 

of an entire label). The adoption of Wine 

Institute’s request would be a significant 

restriction and would require 

rulemaking. Also, TTB has not received 

comments from consumers or consumer 

groups that stickers identifying the 

names of wholesalers, retailers, or 

consumers are confusing. 

5. Subpart D—Label Standards 

In Notice No. 176, TTB proposed a 

new subpart D in each of parts 4, 5, and 

7, governing legibility of labels, type 

size, and language requirements for 

mandatory information on labels. The 

provisions were predominantly derived 

from and consistent with current 

regulations. 

a. Affixing Labels 

Proposed §§ 4.51, 5.51, and 7.51 

provided, consistent with current 

requirements, that labels must be affixed 

such that they cannot be removed 

without the thorough application of 

water or other solvents. DISCUS 

expressed support for these provisions, 

but they suggested amending the 

regulations so that only mandatory 

information would be subject to the 

‘‘firmly affixed’’ requirement, and to 

allow ‘‘any part of the label without 

mandatory information to be peeled 

off.’’ NABI recommended that the 

regulations allow a label to be affixed to 

a container over another label ‘‘provided 

both labels are firmly affixed to the 

container and the overlapping label 

does not obscure any mandatory 

information.’’ NABI suggested that this 

amendment would reflect current TTB 

policy. 

TTB Response 

With the exception of the keg collar 

exemption discussed in the part 7- 

specific discussion below, TTB is 

finalizing §§ 5.51 and 7.51 as proposed. 

Adoption of the DISCUS comment, 

which would allow optional 

information to be included on a peel-off 

label, would require broader changes to 

the definition of a label, which currently 

includes both optional and mandatory 

information. TTB will consider this 

comment as a suggestion for future 

rulemaking. In response to the NABI 

comment, TTB notes that, currently, it 

does not allow a bottler to place one 

label over another label on a container. 

Instead, TTB sometimes allows this as a 

temporary solution in a ‘‘use-up’’ 

situation, where circumstances do not 

allow another feasible solution. TTB 

does not believe that it should extend 

that option beyond temporary ‘‘use-up’’ 

situations, because the practice could be 

subject to abuse. Accordingly, TTB will 

not adopt the NABI suggestion at this 

time, but will consider the comment as 

a suggestion for further rulemaking on 

this issue. 

b. Legibility and Other Requirements for 

Mandatory Information on Labels 

The regulations in proposed §§ 4.52, 

5.52, and 7.52 governing legibility of 

labels, type size, and language 


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requirements were largely based on the 

requirements currently found in §§ 4.38, 

5.33, and 7.28. The proposed 

regulations clarified existing regulations 

and policy. 

TTB set out in proposed §§ 4.52(b), 

5.52(b), and 7.52(b) current regulations 

and existing policy that require 

mandatory information to be separate 

and apart from additional information. 

The proposed rule provided a few 

exceptions to this general rule. First, 

brand names are exempt from this 

requirement. Second, this provision 

would not preclude the addition of brief 

optional phrases as part of the class and 

type designation (such as ‘‘premium 

malt beverage’’), the name and address 

statement (such as ‘‘Proudly distilled 

and bottled by ABC Distilling Company, 

Atlanta, GA, for over 30 years’’), or other 

information required by the regulations, 

as long as the additional information 

does not detract from the prominence of 

the mandatory information. 

Beverly Brewery Consultants, Wine 

Institute, WineAmerica, the New York 

Farm Bureau, and ADSA supported this 

proposal. Beverly Brewery Consultants 

also suggested that TTB should consider 

adding a requirement that mandatory 

information be conspicuous in addition 

to being separate and apart from other 

information on the label. This comment 

referred to current requirements in 27 

CFR 7.28, which provide that if 

‘‘contained among other descriptive or 

explanatory information, the script, 

type, or printing of all mandatory 

information shall be of a size 

substantially more conspicuous than 

that of the descriptive or explanatory 

information.’’ Wine Institute stated that 

it ‘‘supports the ability to include brief 

optional phrases of additional 

information in conjunction with 

mandatory information.’’ DISCUS 

opposed the requirement that 

mandatory information be separate and 

apart from additional information, but 

did not provide its rationale for this 

position. The Mexican Chamber of the 

Tequila Industry proposed that TTB 

establish specific parameters for the 

meaning of ‘‘separate and apart.’’ 

NABI stated that TTB’s proposal to 

allow additional information to appear 

with mandatory information provided 

the ‘‘additional information does not 

detract from the prominence of the 

mandatory information’’ represented a 

vague standard. NABI requested that 

TTB replace this standard with one that 

prohibits additional information from 

creating a ‘‘misleading impression 

inconsistent with the mandatory 

information.’’ NABI stated that, under 

the ‘‘commercial speech’’ doctrine 

developed by the U.S. Supreme Court, 

the government may prevent misleading 

speech, but not ‘‘detracting speech.’’ 

TTB Response 

TTB is finalizing in §§ 5.52(b) and 

7.52(b) the proposed provisions 

requiring mandatory information to be 

separate and apart from additional 

information with the exceptions set 

forth in the proposed regulations and as 

discussed above. However, in response 

to the comments, we are clarifying that 

this new standard does not represent a 

change in TTB’s current labeling policy. 

Accordingly, we are incorporating 

language in the regulation for greater 

consistency with existing regulatory 

standards in §§ 4.38, 5.33, and 7.28. 

Instead of requiring that the additional 

information does not ‘‘detract from the 

prominence of the mandatory 

information,’’ the final rule provides 

that if contained among other 

descriptive or explanatory information, 

the script, type, or printing of all 

mandatory information shall be 

substantially more conspicuous than 

that of the descriptive or explanatory 

information. While these determinations 

are made on a case-by-case basis, 

current TTB policy considers mandatory 

information (other than aspartame) to be 

substantially more conspicuous if the 

type size is at least twice the type size 

of the surrounding information, or if the 

mandatory information is otherwise 

substantially more conspicuous because 

of, for example, the boldness or color of 

the font. The final rule provides for 

distilled spirits labels, and continues to 

provide for malt beverage labels, that 

aspartame declarations must be separate 

and apart from all other information. 

In response to the Mexican Chamber 

of the Tequila Industry, TTB notes that 

establishing specific parameters for 

‘‘separate and apart’’ would result in 

more strict rules than what is currently 

in place, potentially requiring industry 

members to change current labels. This 

would also place a significant 

administrative burden on TTB without 

a clear benefit. 

In response to NABI, TTB notes that 

requirements with regard to mandatory 

statements are issued pursuant to TTB’s 

authority to ensure that labels provide 

consumers with adequate information 

about the identity and quality of the 

product. Requiring that such 

information be sufficiently conspicuous 

on the label is well within TTB’s 

statutory authority. 

c. Contrasting Background 

Consistent with current regulations, 

proposed §§ 4.52(c), 5.52(c), and 7.52(c) 

set forth the existing regulation that 

states the requirement that mandatory 

information must appear on a 

‘‘contrasting background.’’ The 

requirement for a contrasting 

background ensures that mandatory 

information is readily legible to 

consumers; for example, white letters on 

a white background will typically be 

difficult for consumers to read. The 

proposed regulations provided new 

examples that indicate how this 

requirement may be satisfied. The 

proposed regulations specifically state 

that TTB considers black lettering 

appearing on a white or cream 

background, or white or cream lettering 

appearing on a black background, to be 

contrasting. The proposed regulations 

do not restrict industry members to the 

use of black, cream, or white for use on 

labels. 

Beverly Brewery Consultants and the 

New York Farm Bureau supported this 

proposal. DISCUS opposed this 

requirement, commenting in favor of 

retaining the current language from 

which TTB derived this provision. 

DISCUS suggested that by providing 

examples of what constitutes a 

contrasting background, TTB is 

requiring, for example, black text to 

appear on a white or cream background. 

DISCUS also suggested that TTB had 

determined in 2002 that regulations 

regarding contrasting background were 

not necessary. DISCUS pointed to an 

advance notice of proposed rulemaking 

to support this claim (Notice No. 917, 

May 22, 2001, 66 FR 28135). 

TTB Response 

TTB is finalizing proposed §§ 5.52(c), 

and 7.52(c) without change. The 

advance notice of proposed rulemaking 

that DISCUS refers to pertains to the 

placement, noticeability, and legibility 

of the Health Warning Statement under 

the Alcoholic Beverage Labeling Act, 

and TTB did not propose further 

amendments in response to that 

advance notice. TTB believes that the 

examples in the final rule are useful 

points of reference that act as guide rails 

for industry members. However, the 

regulations do not require mandatory 

information to appear in specific colors, 

nor do they require a contrasting 

background to be of a specific color. 

Industry members will remain free to 

select type colors and backgrounds for 

their labels other than black, white, or 

cream as long as the background is 

contrasting in the judgment of the 

appropriate TTB officer. 

d. Type Size Requirements for 

Mandatory Information 

Proposed §§ 4.53, 5.53, and 7.53 set 

out the type size requirements for 

mandatory information under the 


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regulations and incorporated existing 

policy, which provides that the 

minimum type size requirements apply 

to both capital and lowercase letters. For 

malt beverages, these requirements were 

consistent with current § 7.28(b)(3), 

including the requirement that alcohol 

content statements not exceed four 

millimeters on containers larger than 

forty fluid ounces. 

WineAmerica and FEVS expressed 

support for the incorporation of TTB’s 

current policy that minimum type size 

requirements apply to capital and 

lowercase letters. The European Union 

indicated that it understood the 

proposed minimum type size 

requirements for mandatory information 

to be ‘‘fixed,’’ that is, that type size 

cannot exceed the minimum type sizes 

set forth in the current and proposed 

regulations. The European Union stated 

that such ‘‘requirements may possibly 

create unnecessary obstacles to 

international trade’’ for wine and 

distilled spirits. 

Beverly Brewery Consultants stated 

that proposed § 7.53 should clearly state 

whether it applies to mandatory or 

optional alcohol content statements, or 

both. In response to the Treasury 

Department’s Request for Information 

(RFI), published in the Federal Register 

on June 14, 2017 (82 FR 27212), the 

Brewers Association requested that TTB 

remove the maximum type size 

restriction for alcohol content 

statements, stating that such statements 

have been permitted for more than 20 

years and that there is no compelling 

reason to restrict the type size. 

TTB Response 

TTB is finalizing proposed §§ 5.53, 

and 7.53 as set forth in Notice No. 176, 

with a clarifying change to § 7.53, as 

discussed below. 

In response to the European Union’s 

concern, TTB emphasizes that, like the 

current requirements for type size of 

mandatory information, the proposed 

requirements—with the exception of 

alcohol content statements—are 

minimum type size requirements. That 

is, mandatory information may appear 

in type size that is larger than the 

minimum type size requirements. Given 

that these provisions are not new, TTB 

does not believe that the requirement 

poses any potential barriers to 

international trade. 

Regarding § 7.53, TTB permits, but 

does not require, alcohol content 

statements on malt beverage labels, 

unless the malt beverage ‘‘contain[s] any 

alcohol derived from added flavors or 

other added nonbeverage ingredients 

(other than hops extract) containing 

alcohol,’’ in which case an alcohol 

content statement is required. See 

§§ 7.63(a)(3) and 7.65(a), as finalized 

below, and T.D. TTB–21, 70 FR 194, 

January 3, 2005. Section 7.53(a) 

provides for minimum type size 

requirements for mandatory information 

on malt beverage labels. In response to 

the comment from Beverly Brewery 

Consultants, TTB is adding to this 

section a reference to § 7.63(a)(3) to 

clarify that these requirements extend to 

mandatory statements of alcohol 

content. Consistent with current policy, 

TTB is also clarifying that the maximum 

type size limitations in § 7.53(b) apply 

to all statements of alcohol content. 

Regarding the Brewers Association 

comment requesting that TTB remove 

the maximum type size restriction for 

alcohol content statements on malt 

beverages, which TTB has applied to 

both mandatory and optional alcohol 

content labeling statements, TTB 

believes such a regulatory change 

should not be adopted without 

providing more specific notice (and an 

opportunity to comment) to interested 

parties. TTB did not propose to remove 

the maximum type size requirements for 

alcohol content statements on all 

alcohol beverages containers in Notice 

No. 176. TTB therefore declines in this 

rule to change the maximum type size 

requirements. TTB may consider 

changes to this standard in a future 

rulemaking. This final rule clarifies 

current policy with regard to maximum 

type size requirements applying to 

alcohol content statements. 

e. Visibility of Mandatory Information 

Proposed §§ 4.54, 5.54, and 7.54 

explicitly required that mandatory 

information on labels must be readily 

visible and may not be covered or 

obscured in whole or in part. DISCUS 

expressed support for this proposal. 

Beverly Brewery Consultants 

commented that ‘‘[i]n view of TTB’s 

proposal not to require certain 

mandatory information to appear on a 

‘brand label,’ I strongly recommend that 

a ‘conspicuous’ requirement be added to 

sec. 7.54 to ensure consumers will be 

able to distinguish mandatory label 

information from other information on 

the label.’’ 

TTB Response 

TTB is finalizing §§ 5.54 and 7.54 as 

proposed. In response to the comment 

from Beverly Brewery Consultants 

suggesting that mandatory information 

must be ‘‘conspicuous,’’ current 

regulations do not impose such a 

requirement. Instead, both the current 

regulations and the proposed 

regulations provide that mandatory 

information must be ‘‘readily visible’’ 

on distilled spirits and malt beverage 

labels. TTB does not believe that the 

commenter supplied an adequate basis 

for revising this requirement, and any 

such change might require revisions to 

existing labels. Accordingly, TTB is not 

adopting this comment. See Section 

II.C.4.a below for discussion of the 

removal of the requirement that 

mandatory labeling information appear 

on the ‘‘brand label’’ of malt beverages. 

f. Language Requirements 

Consistent with current regulations, 

proposed §§ 4.55, 5.55, and 7.55 

generally require mandatory 

information, other than the brand name, 

to appear in the English language. Also 

consistent with current malt beverage 

and distilled spirits requirements, but as 

a liberalization for wine, the proposed 

regulations provided that all mandatory 

information may appear solely in 

Spanish when products are bottled for 

sale in the Commonwealth of Puerto 

Rico. The proposed regulations allowed 

for additional statements in foreign 

languages, including translations of 

mandatory information, and the country 

of origin, when allowed by CBP 

regulations. DISCUS expressed support 

for this proposal. 

TTB Response 

TTB is finalizing proposed §§ 5.55 

and 7.55 as set forth in Notice No. 176. 

g. Additional Information (NonMandatory Information) on Labels 

Proposed §§ 4.56, 5.56, and 7.56, set 

out current TTB policy on the 

appearance of additional information on 

labels (that is, information that is not 

mandatory information). Specifically, 

the proposed provisions provided that 

additional information that is truthful, 

accurate, and specific, and that does not 

violate the restricted, prohibited, and 

prohibited if misleading provisions in 

subparts F, G, or H of part 4, 5, or 7, for 

wine, distilled spirits, or malt beverages, 

respectively, may appear on labels. 

Such additional information may not 

conflict with, modify, qualify, or restrict 

mandatory information in any manner. 

NABI noted that proposed §§ 4.56, 

5.56, and 7.56 did not specify type size 

requirements for additional information, 

but suggested that, in the experience of 

its members, TTB specialists often 

require the additional information to 

appear in uniform type size. NABI 

stated that the regulations should 

‘‘codify clearly the fact that uniformity 

is not required absent a TTB showing 

that the lack of uniformity itself results 

in a statement or representation that 

misleads the consumer.’’ 


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Beverly Brewery Consultants 

expressed concern about the provisions 

in proposed § 7.56, suggesting that the 

proposed regulation would impose a 

new requirement that additional 

information be specific, and providing 

examples of additional information that 

is not specific, such as ‘‘full of flavor’’ 

and ‘‘we have started a revolution with 

this beer.’’ 

DISCUS opined that proposed § 5.56 

should be struck on the grounds that it 

is duplicative of proposed § 5.122. 

TTB Response 

TTB is finalizing proposed §§ 5.56 

and 7.56 without change. 

In response to the comment from 

NABI, TTB notes that neither the 

current regulations nor the regulations 

adopted in this final rule require that 

additional information be in a uniform 

type size. TTB does not have a policy 

of requiring uniform type size on a 

general basis but does sometimes 

evaluate the type size of additional 

information in determining whether it 

qualifies mandatory information in a 

misleading fashion. The prominence 

and type size of the optional 

information is one factor in evaluating 

whether the information creates a 

misleading impression as to the identity 

of the product. TTB will continue this 

policy. 

In response to the comment from 

Beverly Brewery Consultants, which 

suggested that the proposed regulation 

would impose a new requirement that 

additional information be specific, TTB 

emphasizes that the regulations as 

finalized do not prohibit the inclusion 

of puffery (such as ‘‘full of flavor’’) that 

is not specific. The proposed provisions 

in §§ 4.56, 5.56, and 7.56 authorize the 

use of additional information that is 

truthful, accurate, and specific provided 

that it is used in accordance with 

subparts F, G, and H. This does not 

prohibit the use of non-specific 

‘‘puffery’’ on labels. 

In response to DISCUS, TTB does not 

agree that proposed §§ 5.55 and 5.122 

are duplicative. Proposed § 5.55 is 

explicit in authorizing the use of 

additional information, whereas 

proposed § 5.122 sets out some of the 

parameters for all information on a 

container, including additional 

information. 

6. Subpart E—Mandatory Label 

Information 

Proposed subpart E in parts 4, 5 and 

7 sets forth the information that is 

required to appear on alcohol beverage 

labels (otherwise known as ‘‘mandatory 

information’’). This subpart also 

prescribes where and how mandatory 

information must appear on such labels. 

a. What Constitutes a Label 

In §§ 4.61, 5.61, and 7.61 TTB set out 

its current policy specifying what is 

considered to be the ‘‘label’’ for 

purposes of mandatory information 

placement. 

DISCUS, WineAmerica, and the New 

York Farm Bureau expressed support for 

the proposed provisions. NABI 

requested that TTB clarify in the 

regulations whether or not TTB 

considers QR codes to be labeling or 

advertising. They also suggested that 

TTB remove ‘‘plastic film’’ from the 

proposed regulations that read ‘‘[w]hen 

used in this part for purposes of 

determining where mandatory 

information must appear, the term 

‘‘label’’ includes: (1) Material affixed to 

the container, whether made of paper, 

plastic film, or other matter’’ [emphasis 

added], and replace it with ‘‘plastic, 

metal * * *.’’ 

TTB Response 

TTB is finalizing §§ 5.61, and 7.61 as 

proposed with the exception that the 

finalized regulations will make clear 

that labels can be made from plastic 

and/or metal, in addition to paper and 

‘‘other matter.’’ While a QR code itself 

is part of a label, TTB evaluates the 

material it points to under its 

advertising regulations, as explained in 

TTB Industry Circular 2013–1, ‘‘Use of 

Social Media in the Advertising of 

Alcohol Beverages,’’ which provides as 

follows: 

Industry members may also enable 

consumers to access content by including a 

quick response code (or QR Code) on a label 

or advertisement. Consumers can scan the 

QR Code with their mobile device to access 

the additional content. Depending on the 

type of media that is linked to by the QR 

Code (such as the industry member’s web 

page, mobile application, or blog), the 

relevant regulations and TTB public 

guidance documents will apply. If, for 

example, the QR code links to a document, 

such as a drink recipe using an industry 

member’s product, the recipe will be 

considered an advertisement because it is a 

written or verbal statement, illustration, or 

depiction that is in, or calculated to induce 

sales in interstate or foreign commerce. 

TTB believes that TTB Industry 

Circular 2013–1 covers this matter 

adequately and there is no need to 

incorporate this policy into the 

regulations. 

b. Closed Packaging 

Current regulations in §§ 4.38a and 

5.41 set out rules for the placement of 

information on bottle cartons, booklets, 

and leaflets. Briefly, these regulations 

provide that individual coverings, 

cartons, or other containers of the bottle 

used for sale at retail (that is, other than 

a shipping container), as well as any 

written, printed, graphic, or other matter 

accompanying the bottle to the 

consumer shall not contain any 

statement, design, device or graphic, 

pictorial, or emblematic representation 

prohibited by the labeling regulations. 

The current regulations also require 

the placement of mandatory label 

information on sealed opaque coverings, 

cartons, or other containers used for sale 

at retail (but not shipping containers). 

Coverings, cartons, or other containers 

of the bottle used for sale at retail that 

are designed so that the bottle is easily 

removable may display any information 

that is not in conflict with the label on 

the bottle contained therein. However, 

labels must display any brand names or 

designations in their entirety, with any 

required modifications and/or 

statements of composition. 

Thus, the prohibited practices for 

labeling set forth in existing §§ 4.39(a) 

and 5.42(a) apply to bottles, labels on 

bottles, any individual covering, carton, 

or other container of such bottles used 

for sale at retail, and any written, 

printed, graphic, or other matter 

accompanying such bottles to the 

consumer. The current labeling 

regulations in part 7 do not include 

regulations similar to current §§ 4.38a 

and 5.41. However, as set forth at 

current § 7.29(a) and (h), the prohibited 

practices in the labeling regulations for 

malt beverages apply to containers, any 

labels on such containers, or any 

cartons, cases, or individual coverings 

of such containers used for sale at retail, 

as well as to any written, printed, 

graphic, or other material accompanying 

malt beverage containers to the 

consumer. 

In Notice No. 176, TTB stated that the 

existing regulations create some 

confusion as to when a case constitutes 

labeling and when it constitutes 

advertising. Accordingly, TTB proposed 

identical regulations in proposed 

§§ 4.62, 5.62, and 7.62 to address 

packaging. The proposed regulations 

provided, consistent with existing 

regulations in parts 4, 5 and 7, that 

packaging may not include any 

statements or representations prohibited 

by the labeling regulations from 

appearing on containers or labels. The 

proposed regulations also provided, 

consistent with existing regulations in 

parts 4 and 5 but as a new requirement 

for part 7, that closed packaging, 

including sealed opaque coverings, 

cartons, cases, carriers, or other 

packaging used for sale at retail, must 

include all mandatory information 


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required to appear on the label. The 

rationale for requiring mandatory 

information on sealed opaque coverings 

is that the consumer is not able to see 

the label on the container under normal 

conditions of retail sale. This rationale 

would not extend to shipping containers 

that do not accompany the container to 

the retail shelf. 

Furthermore, the proposed 

regulations provided greater clarity than 

the current provisions about when 

packaging is considered closed. 

Proposed §§ 4.62, 5.62, and 7.62 provide 

that packaging is considered closed if 

the consumer must open, rip, untie, 

unzip, or otherwise manipulate the 

package to remove the container in 

order to view any of the mandatory 

information. Packaging is not 

considered closed if a consumer could 

view all of the mandatory information 

on the container by merely lifting the 

container up, or if the packaging is 

transparent or designed in a way that all 

of the mandatory information can easily 

be read by the consumer without having 

to open, rip, untie, unzip, or otherwise 

manipulate the package. TTB sought 

comment on whether TTB should 

require mandatory or dispelling 

information to appear on open 

packaging when part of the label is 

obscured. 

TTB solicited comments on whether 

the proposed rules would require 

significant change to labels, containers, 

or packaging materials. TTB also 

solicited comments on whether the 

proposed revisions would provide better 

information to the consumer and make 

it easier to find mandatory information 

on labels, containers, and packages. 

The comments on this issue were split 

between those that supported the 

proposed change and those that stated 

that the proposed amendments would 

change TTB policies and impose new 

costs on industry members. Some 

commenters, including the Oregon 

Winegrowers Association and the 

Willamette Valley Wineries Association, 

supported the proposed amendments 

and urged TTB to go even further, by 

providing that ‘‘any consumer facing 

information on a label or packaging 

cannot: (1) Be misleading; and (2) 

convey any information that is 

unsupportable by the label claims.’’ 

The Williams Group supported the 

proposed provisions as providing more 

information to consumers; however, 

they also indicated that the amendments 

might require changes to some 

packaging. 

The Brewers Association specifically 

expressed support for proposed 

§ 7.62(c), which sets out provisions for 

closed packaging because ‘‘[c]onsumers 

should be able to view the mandatory 

information at the point of purchase.’’ 

The Brewers Association further noted 

that many brewers already place 

mandatory information on packaging. 

The Beer Institute appeared to 

support proposed § 7.62, provided that 

‘‘TTB clarify the term ‘opaque 

packaging’ as packaging through which 

individual malt beverage bottles/cans 

(and mandatory information contained 

thereon) cannot be seen by the 

consumer.’’ 

However, other commenters, 

including Heavy Seas Beer, DISCUS, 

and the Wine Institute, opposed 

proposed §§ 4.62, 5.62, and 7.62, on the 

basis that the new requirements would 

require changes to current packaging 

and would thus impose financial 

burdens. Heavy Seas Beer commented 

as follows: 

[C]hanging all secondary packaging to meet 

label requirements, meaning can wraps and 

mother cartons, this would be a significant 

financial burden for smaller suppliers, as the 

origin plates would need to be remade. The 

cost per plate can run from $1,500–$4,000 

per package. We estimate that the financial 

burden for this change would cost our 

brewery about $75,000, which we simply 

don’t have. If this new section were to be put 

into place, we would need 2–4 years to 

implement 100%. 

Wine Institute and DISCUS argued, 

without providing specific data, that the 

proposal would impose a financial 

burden. DISCUS argued that the 

proposed amendments would 

‘‘adversely affect packaging such as gift 

boxes, gift bags, tubes, etc.’’ because this 

type of packaging would be required to 

bear mandatory information. DISCUS 

further requested that—if the proposed 

rule is adopted—TTB use the language 

‘‘sealed’’ and ‘‘otherwise manipulate’’ 

rather than ‘‘closed.’’ Wine Institute 

suggested that the proposed 

clarifications to TTB policy on what 

type of packaging was ‘‘closed’’ 

represented a change in policy, and 

stated that ‘‘TTB should not change its 

policy on containers that can be opened 

and restored to its original condition; in 

other words, without breaking any type 

of seal, glue or similar type of 

permanent closure.’’ 

The New York Farm Bureau, 

WineAmerica, Heavy Seas Beer, and a 

member of the public raised concerns 

about the cost of having to place 

mandatory information on ‘‘shipping 

containers’’ and ‘‘mother cartons,’’ and 

also discussed the use of this type of 

packaging for direct-to-consumer sales 

(such as sales by wine clubs). Beverly 

Brewery Consultants made the 

observation that proposed § 7.62 would 

result in modification or redesign of 

packaging. Finally, Senator Kennedy 

commented in opposition to this 

proposal as one of many that could be 

confusing for consumers and lead to 

label resubmission. 

TTB Response 

After carefully considering the 

comments, it is TTB’s conclusion that 

the proposed amendment caused 

confusion on the part of industry 

members with regard to whether the 

proposed amendment would apply to 

shipping cartons; this was not the intent 

of the proposed revision. However, 

based on the comments, TTB cannot 

determine with any certainty the extent 

to which the proposed new 

requirements would require industry 

members (in particular, brewers) to 

change their packaging materials and 

incur new costs. TTB does not believe 

that this can be resolved without 

undergoing additional notice and 

comment rulemaking on a more specific 

proposal regarding this issue. 

Accordingly, TTB will consider the 

new requirements for malt beverages as 

suggestions for future rulemaking but 

will not adopt these requirements at this 

time. Instead, TTB will retain the 

current regulations with regard to parts 

5 and 7, with minor modifications to 

section 7.62 to clarify that the 

prohibition against statements or 

representations that would be 

prohibited on a label would include 

misleading brand names and class/type 

designations. This is consistent with 

current TTB policy. TTB recognizes that 

this means the regulations will not 

require malt beverages to display 

mandatory information on closed 

cartons. However, malt beverage 

cartons, cases, or other coverings of the 

container used for sale at retail will 

continue to be subject to the prohibited 

practices provisions. With regard to 

clarification of current policy as to what 

constitutes sealed packaging for 

industry members, TTB is not changing 

its current interpretation of the existing 

regulations. 

c. Brand Names and Trademarks 

Proposed §§ 4.64, 5.64, and 7.64 set 

forth requirements for brand names of 

wine, distilled spirits, and malt 

beverages, respectively. The proposed 

regulations simply clarify the current 

regulations by providing that a brand 

name is misleading if it creates (by itself 

or in association with other printed or 

graphic matter) any erroneous 

impression or inference as to the age, 

origin, identity, or other characteristics 

of the distilled spirits. A brand name 

that would otherwise be misleading may 

be qualified with the word ‘‘brand’’ or 


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with some other qualification, if the 

appropriate TTB officer determines that 

the qualification dispels any misleading 

impression that the label might 

otherwise create. 

The Mexican Chamber of the Tequila 

Industry commented that proposed 

§ 5.64 should be revised to include more 

specific criteria for determining whether 

a brand name is misleading, and that 

legal or administrative instruments 

should be established to resolve any 

disagreement in this regard between the 

TTB official and the brand owner. 

TTB Response 

TTB is finalizing §§ 5.64 and 7.64 as 

proposed. TTB is not making the change 

suggested by the Mexican Chamber of 

the Tequila Industry regarding the 

inclusion of more specific criteria, and 

the notice did not solicit comments on 

more specific language. TTB will 

consider this comment as a suggestion 

for future action. With regard to the 

process for resolving disagreements 

between TTB and brand owners, TTB 

notes that the procedures in part 13 

regarding administrative appeals of the 

denial or revocation of label approval 

would apply to brand name issues as 

well as any other labeling issue that an 

applicant or certificate holder wishes to 

contest through the administrative 

process. 

d. Name and Address 

In the regulations on the name and 

address of bottlers and producers of 

domestically bottled wine, distilled 

spirits, and malt beverages, Notice No. 

176 proposed clarifying changes to 

existing requirements. 

The FAA Act provides that wine, 

distilled spirits, and malt beverage 

labels must contain certain mandatory 

information, including the name of the 

manufacturer, bottler, or importer of the 

product. See 27 U.S.C. 205(e)(2). Under 

current regulations, bottlers of distilled 

spirits and malt beverages may list 

either the place of bottling, every 

location at which the same industry 

member bottles the product, or, under 

certain circumstances, the principal 

place of business of the industry 

member that is bottling the product. 

Bottlers of distilled spirits or malt 

beverages that utilize one of the latter 

two options must mark the labels using 

a coding system that enables the bottler 

and TTB to trace the actual place of 

bottling of each container. This both 

protects the revenue and allows for the 

tracing of containers in the event of a 

product recall. 

In Notice No. 176, TTB noted that, 

with the growing number of craft 

brewers and craft distillers in the 

marketplace, there may be more interest 

among consumers as to where malt 

beverages are brewed and where 

distilled spirits are distilled. On the 

other hand, TTB also wished to provide 

industry members with flexibility in 

their labeling statements, to 

accommodate the growing number of 

arrangements where products are 

produced or bottled pursuant to 

contractual arrangements. One of the 

major reasons for allowing the use of 

principal places of business and 

multiple addresses on labels is to allow 

industry members to use the same 

approved label for their products that 

are bottled or imported at different 

locations rather than having to seek 

approval of multiple labels. In Notice 

No. 176, TTB noted that, under both the 

existing and proposed regulations, 

industry members are always free to 

include optional statements that provide 

consumers with more information about 

their production and bottling processes 

if they wish. Accordingly, TTB sought 

comments from all interested parties, 

including industry members and 

consumers, on whether the proposed 

labeling requirements provided 

adequate information to the consumer 

while avoiding undue burdens on 

industry members. 

With regard to alcohol beverages 

imported in containers, the name and 

address inform the consumer of the 

identity of the importer of the alcohol 

beverage product and the location of the 

importer’s principal place of business. 

The current regulations at §§ 4.35(b), 

5.36(b), and 7.25(b) provide that, on 

labels of imported wines, distilled 

spirits, and malt beverages, respectively, 

the words ‘‘imported by,’’ or a similar 

appropriate phrase, must be stated, 

followed immediately by the name of 

the permittee who is the importer, or 

exclusive agent, or sole distributor, or 

other person responsible for the 

importation, together with the principal 

place of business in the United States of 

such person. 

Like the current regulations, the 

proposed regulations in §§ 4.68, 5.68, 

and 7.68 required the name and address 

of the importer when the product is 

imported in containers. The proposed 

regulations clarified that for purposes of 

these sections, the importer is the 

holder of an importer’s basic permit 

making the original customs entry into 

the United States, or is the person for 

whom such entry is made, or the holder 

of an importer’s basic permit who is the 

agent, distributor, or franchise holder 

for the particular brand of imported 

alcohol beverages and who places the 

order abroad. These provisions mirror 

the policy set forth in Revenue Ruling 

71–535 with regard to the name and 

address requirements applicable to 

importers. 

Proposed §§ 4.67, 5.67, and 7.67 

addressed the labeling of products 

bottled after importation, in a manner 

largely consistent with current 

regulations. If the product is bottled 

after importation in bulk, by or for the 

importer thereof, the proposed rules 

required an ‘‘imported and bottled by’’ 

or ‘‘imported by and bottled for’’ 

statement, as appropriate. 

The proposed regulations in §§ 4.67, 

5.67, and 7.67 specifically addressed, 

for the first time, the name and address 

requirements applicable to wine, 

distilled spirits, and malt beverages that 

are imported in bulk and then subject to 

further production or blending activities 

in the United States. 

In section 1421 of the Taxpayer Relief 

Act of 1997, Public Law 105–34, 

Congress enacted a new IRC provision 

that permits the transfer of beer in bulk 

containers from customs custody to 

internal revenue bond at a brewery. 

After transfer to internal revenue bond 

at a brewery, imported beer may be 

bottled or packed without change or 

with only the addition of water and 

carbon dioxide, or may be blended with 

domestic or other imported beer and 

bottled or packed. 

In ATF Procedure 98–1, TTB’s 

predecessor agency provided guidance 

to brewers and bottlers for the labeling 

of imported malt beverages bottled in 

the United States. This guidance was 

necessary because the existing 

regulations in part 7 do not address the 

labeling of imported malt beverages that 

are bottled in the United States, or the 

labeling of imported malt beverages that 

are blended with other imported malt 

beverages or with domestic malt 

beverages, and then bottled or packed in 

the United States. 

Similarly, the current regulations in 

part 5 provide for the labeling of 

distilled spirits bottled after 

importation, but do not provide rules 

concerning the labeling of spirits that 

were subject to production activities in 

the United States after importation. 

Thus, proposed §§ 4.67, 5.67, and 7.67 

provide rules for the labeling of wine, 

distilled spirits, and malt beverages, 

respectively, that are imported in bulk 

and are then blended with wine, 

distilled spirits, or malt beverages of a 

different country of origin, or subjected 

to production activities in the United 

States that would alter the class or type 

of the product. The proposed rules 

provide that such products must be 

labeled with a ‘‘bottled by’’ statement, 

rather than an ‘‘imported by’’ statement. 


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The proposed regulations also 

included new provisions on the use of 

trade names, and the name and address 

requirements for ‘‘contract bottling’’ 

situations, in which products are 

produced and/or bottled by a third party 

pursuant to a contact with the brand 

owner. While these provisions were 

new to the regulations, they reflect 

current TTB policy. Finally, to reflect 

current TTB policy, TTB proposed new 

language in the regulations regarding 

the use of misleading trade names. 

In response to the proposed 

regulations, TTB received comments 

from various interested parties, 

including alcohol beverage producers, 

trade associations, and individual 

commenters. Some of the commenters 

addressed wine-specific issues, which 

TTB is not addressing in this document. 

e. Organization and General Comments 

Regarding the reorganization of 

existing 27 CFR 5.36 into three distinct 

sections, DISCUS stated that it opposed 

the proposed §§ 5.66, 5.67, and 5.68 

because ‘‘[t]here is no reason to divide 

the existing rule into three separate 

proposals’’ and that the proposed 

regulations ‘‘are convoluted and 

inconsistent with the direction of 

providing essential, understandable 

information for consumers.’’ DISCUS 

also stated that current § 5.36(a)(6) and 

current § 5.36(b)(2)(iii) sufficed for 

purposes of identifying the proprietor 

and importer, respectively, and their 

principal place of business. 

With regard to proposed 27 CFR 5.66, 

specifically, DISCUS opposed the 

proposal on the ground that it ‘‘not only 

fails to modernize the labeling and 

advertising rules but also is out of sync 

with historic industry practices and 

today’s economy. There is no evidence 

to suggest that consumers are confused 

with the existing name and address 

rules and this new proposal only would 

serve to further confuse consumers.’’ 

The Beer Institute commented that it 

was ‘‘generally concerned about the 

changes proposed,’’ as TTB did not 

explain why current regulations are 

inadequate and that ‘‘speculation that 

more activity in the malt beverage sector 

‘may’ lead consumers to want more 

information about where malt beverages 

are brewed simply isn’t enough to 

justify regulatory change.’’ The Beer 

Institute noted that industry members 

may choose to provide consumers with 

more information about their 

production and bottling process and 

urged TTB to allow market and 

consumer demands ‘‘to dictate the level 

of specificity.’’ 

TTB Response 

In response to the DISCUS comment 

regarding TTB’s proposed division of 

§ 5.36 into three distinct sections, TTB 

notes that the proposed regulations are 

intended to more clearly distinguish 

between the regulatory requirements for 

domestically produced distilled spirits, 

distilled spirits imported in containers, 

and distilled spirits bottled after 

importation by separating the current 

name and address section into three 

separate sections. TTB believes that 

setting out these requirements in 

separate sections promotes ease of 

compliance for industry members. 

Furthermore, the new regulations 

offer greater clarity and promote 

compliance by incorporating previously 

issued guidance documents. For 

instance, the proposed regulations 

clarify what is meant by ‘‘importer’’ for 

purposes of these sections by 

incorporating Revenue Ruling 71–535 

into the regulations. The new 

regulations offer further clarity by 

setting out new regulatory requirements 

for distilled spirits that were bottled 

after importation and that were subject 

to further production or blending 

activities in the United States. 

f. Distinguishing Between Imported and 

Domestic Products 

NABI expressed its support for 

proposed 27 CFR 4.68. 5.68, and 7.68 

and stated that the proposed sections 

are ‘‘helpful’’ because they provide 

‘‘greater specificity of the parties that 

may appear on the label [and] names of 

the importer in the ‘imported by’ 

statement than does the current sections 

4.25(b)(1), 5.36(b)(1), and 7.25(b).’’ 

Concerning proposed 27 CFR 7.67, 

Beverly Brewery Consultants expressed 

its support for the incorporation of TTB 

Procedure 98–1 in the regulations, as it 

‘‘has existed far too long without being 

incorporated into the CFR.’’ 

However, DISCUS raised objections to 

the introduction of the term ‘‘wholly 

made’’ when referring to products made 

in the United States without imported 

distilled spirits, commenting as follows: 

The existing name and address rule has 

worked well for industry members and the 

introduction of the term ‘‘wholly made’’ only 

serves to confuse matters. TTB requests 

comments regarding whether these proposals 

provide adequate information to consumers 

and avoid undue burdens on industry 

members—we respectfully submit that the 

existing language better balances these 

concerns. 

With regard to proposed 27 CFR 5.67, 

alcohol beverage attorney Steven Masket 

commented as follows: 

Both Section 5.67(a) and Section 5.69 

reflect the intention of the TTB to defer to 

[CBP] with respect to country of origin 

marking, but the bald enumeration of 

processes in 5.67(c), results in the possibility 

that a product of foreign origin will be 

marked as domestic. I ask that the TTB 

further clarify that a product that is foreign 

should be treated and marked as imported 

and not considered domestic by the sheer 

action of simply blending or production 

activities conducted after importation in 

bulk, unless those activities meet the [CBP] 

rules related to country of origin marking. 

Mr. Masket suggested that TTB revise 

the regulations to either distinguish 

between imported products that TTB 

considers to have undergone a 

substantial transformation in the United 

States under CBP rules and those that 

have not. Or, alternatively, Mr. Masket 

suggests that, if TTB ‘‘does not believe 

that the identity of the importer is 

relevant after any of those certain 

processing activities enumerated in 

§ 5.67(c) are conducted in the United 

States, whether substantial 

transformation [has occurred] or not 

under CBP regulations,’’ that TTB 

should amend section 5.67(c) to add a 

reference to the CBP marking 

requirements. 

TTB Response 

In response to the DISCUS comment, 

TTB believes that the proposed 

regulatory text regarding products that 

are ‘‘wholly made’’ in the United States 

without imported distilled spirits 

clearly distinguishes those products 

from domestic distilled spirits that are 

blended with imported distilled spirits. 

TTB addresses the latter category of 

products in the section pertaining to 

imported spirits that are blended with 

domestic spirits after importation. 

In response to Mr. Masket’s comments 

on § 5.67(c), TTB does not believe it is 

necessary to revise the proposed 

§ 5.67(c) to distinguish between 

products that have undergone a 

substantial transformation under CBP 

rules and those that have not. The TTB 

regulation does not require the use of 

the term ‘‘imported by’’ to describe 

beverages that have undergone 

production activities in the United 

States. This in no way implies that such 

products may not be considered to have 

a foreign country of origin under CBP 

rules, and in fact consistent with current 

regulations, the regulations at § 5.69 

include a cross-reference to CBP 

regulations regarding country of origin 

marking requirements at 19 CFR parts 

102 and 134. This section reflects TTB’s 

intention to defer to CBP on the 

determination of whether a country of 

origin statement is required to appear on 

distilled spirits bottled after importation 

that are subject to further production or 

blending activities in the United States 


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and, if a statement is required, on 

determinations of the appropriate 

country of origin. Accordingly, when 

CBP requires a country of origin 

statement to appear on a distilled spirits 

container, such labeling statements 

must be consistent with CBP 

regulations. 

As to Mr. Masket’s comment on 

§ 5.67(c)’s prohibition on placing an 

‘‘imported by’’ statement on a label of 

distilled spirits bottled after importation 

and subject to certain processes in the 

United States, it is TTB’s position that 

a ‘‘bottled by’’ statement is more 

appropriate for the labeling of such 

products in order to adequately 

distinguish such products from alcohol 

beverages that are imported in 

containers. 

g. Comments in Favor of Imposing New 

Requirements With Regard to Names 

and Addresses on Labels 

In addition to comments on the 

proposed regulations, several comments 

provided suggestions for further 

amendments to the regulations. The 

Brewers Association requested that TTB 

require labels to disclose whether 

brewers are part of a controlled group, 

as defined in 26 U.S.C. 5051(a) if the 

name of the controlled group is different 

from the brewery or its trade name as it 

appears on the label. As a basis for this 

proposal, the Brewers Association stated 

that disclosing brewery ownership is 

fundamental to TTB’s responsibilities in 

implementing the FAA Act and that 

current regulations allow large 

companies to hide their ownership and 

control over multiple brands. NBWA 

commented in favor of strengthening 

transparency with regard to the identity 

of alcohol beverage producers. 

TTB Response 

In response to comments that 

advocate for new regulatory 

requirements within the name and 

address sections, TTB considers such 

comments as outside the scope of this 

rulemaking as Notice No. 176 did not 

solicit comments from industry or the 

general public on these specific 

proposals. For example, the Brewers 

Association comment in favor of 

requiring brewers to identify whether 

they are members of ‘‘controlled 

groups’’ under tax laws would represent 

a new requirement. Such a requirement 

would go beyond the longstanding 

policy of TTB and its predecessor 

agencies to allow the use of trade 

names, rather than the actual corporate 

names of bottlers or importers (much 

less the status of such companies as 

members of controlled groups) in the 

labeling of alcohol beverages. TTB’s 

statutory mandate is to ensure that the 

labels identify the bottler or importer of 

the product. Accordingly, TTB is not 

adopting regulations that would go 

beyond the identification of the bottler 

or importer by requiring additional 

information about producers, bottlers, or 

importers in the name and address 

regulations. 

h. Misleading Trade Names 

The Beer Institute expressed its 

concern about TTB’s proposal to 

prohibit the use of trade names that 

would create a misleading impression as 

to the age, origin, or identify of the 

product. The Beer Institute stated that 

TTB did not provide a specific 

explanation of the need for this proposal 

and that it ‘‘would be a dramatic change 

to the long-standing practice for contract 

production brewers to adopt and use the 

customer’s name/trade name on the 

labels.’’ DISCUS also raised concerns 

about the provisions regarding the use 

of trade names, commenting as follows: 

The requirement in subsection (g)(2) 

regarding trade names is unnecessary. Some 

trade names have been used for years and 

could be impacted solely because TTB deems 

them to be misleading (irrespective of 

whether consumers are misled). TTB has 

limited resources and is not equipped to 

make determinations as to what is and is not 

misleading in this context and TTB should 

not make arbitrary changes to longstanding 

trade names. Separately, requiring changes to 

brand names could cause immense harm and 

have untold financial and marketplace 

impacts for industry members. 

TTB Response 

TTB intended the provision on 

misleading trade names to reflect 

current policy with regard to the 

misleading use of trade names. 

However, TTB did not intend to 

prohibit, for example, the adoption of 

one industry member’s trade name on 

the basic permit or brewer’s notice of 

another industry member in the context 

of a contract bottling or production 

arrangement. 

TTB is finalizing the provision that 

allows for the use of trade names. This 

is consistent with current regulations in 

part 5 for distilled spirits and current 

policy for malt beverages. However, 

TTB is not adopting the proposed 

language specifying that trade names 

may not be used in a misleading 

manner. However, TTB is maintaining 

its current policy on this issue, and will 

view the comments as suggestions for 

further public guidance on this issue to 

clarify TTB’s policy. TTB notes that the 

general prohibition on the use of 

misleading statements on labels suffices 

to provide TTB with authority to 

regulate the misleading use of trade 

names; however, we also stress that TTB 

does not consider the use of identical 

trade names by different permittees in a 

contract bottling or production context 

misleading, in and of itself. 

7. Subparts F, G, and H—Statements 

That Are Restricted, Prohibited, or 

Prohibited if Misleading 

The current regulations include a 

single section titled ‘‘Prohibited 

Practices’’ that sets forth a number of 

prohibited practices, and it also 

describes certain labeling practices that 

TTB regulates in various ways. To make 

regulatory provisions easier to find, and 

to improve readability, TTB proposed to 

divide the regulations addressing 

prohibited practices into three subparts: 

(1) Subpart F, practices that may be 

used under certain conditions, (2) 

subpart G, practices that are always 

prohibited, and (3) subpart H, practices 

that are prohibited only if they are used 

in a misleading manner on labels. 

Proposed subparts F, G, and H each 

contain language to clarify that the 

prohibitions in these subparts apply to 

any label, container, or packaging, and 

define those terms as used in these 

subparts. Specifically, for purposes of 

proposed subparts F, G, and H, the term 

‘‘label’’ includes all labels on alcohol 

beverage containers on which 

mandatory information may appear, as 

set forth in proposed §§ 4.61, 5.61, and 

7.61, as well as any other label on the 

container. These proposed sections also 

set out the parts of the container on 

which mandatory information may 

appear. 

The proposed text defines 

‘‘packaging’’ for purposes of proposed 

subparts F, G, and H as any carton, case, 

carrier, individual covering, or other 

packaging of such containers used for 

sale at retail. It does not include 

shipping cartons or cases that are not 

intended to accompany the container to 

the consumer. The proposed rule also 

provides that the term ‘‘statement or 

representation’’ as used in those 

subparts includes any statement, design, 

device, or representation, and includes 

pictorial or graphic designs or 

representations as well as written ones. 

It also includes both explicit and 

implicit statements and representations. 

This provision avoids the need to repeat 

the reference to each type of statement 

or representation in every section in 

these subparts. 

a. Subpart F—Restricted Labeling 

Statements in General 

Proposed §§ 4.81, 5.81, and 7.81 set 

out that the labeling practices covered 

under subpart F (such as organic claims 

or food allergen labeling) may be used 


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on labeling only when used in 

compliance with the provisions set out 

in subpart F. 

DISCUS expressed support for this 

section. Beverly Brewery Consultants 

stated that § 7.81(a)(1) was unnecessary 

and commented that there was no 

explanation as to why the definition of 

‘‘container’’ in paragraph (a)(2) differs 

from the provision in the definitions 

section. 

TTB Response 

TTB is finalizing proposed §§ 5.81 

and 7.81 as proposed. TTB disagrees 

with the comment from Beverly 

Brewery Consultants with regard to each 

section’s paragraph (a)(1), which sets 

forth the general requirements 

applicable to restricted labeling 

statements, and makes the regulations 

easier to understand. With regard to 

each section’s paragraph (a)(2), its 

purpose is not to define what a 

container is, but to clarify that the 

provisions regarding restricted labeling 

statements apply to all parts of the 

container, including those parts of the 

container on which information would 

not satisfy mandatory labeling 

requirements. For example, the 

regulations in §§ 5.61 and 7.61 provide 

that information appearing on the 

bottom surface of a container would not 

satisfy mandatory labeling 

requirements. However, pursuant to the 

language in §§ 5.81(a)(2) and 7.81(a)(2), 

information appearing on the bottom 

surface of the container would 

nonetheless be subject to the provisions 

on restricted labeling practices. Thus, 

for example, the regulations would 

prohibit use of an optional ‘‘organic’’ 

claim on the bottom surface of a 

container unless the use of the claim 

met the requirements set forth in the 

regulations. The final regulations do not 

include any changes to the language of 

the proposed regulations. 

b. Voluntary Disclosure of Major Food 

Allergens 

TTB received two comments that are 

specific to the proposed regulations 

pertaining to voluntary allergen labeling 

in §§ 4.82, 5.82, and 7.82, which set out 

the current regulatory provisions 

without change. DISCUS commented in 

support of the provisions as proposed. 

The Brewers Association commented in 

favor of mandatory allergen labeling, 

and stated that ‘‘[i]n the event that TTB 

decides to maintain the existing 

voluntary allergen disclosure policy, the 

BA believes that this issue warrants a 

separate rulemaking in the future.’’ In 

addition, as noted in section I.E.1.a of 

this document, TTB received several 

comments from consumers and 

consumer groups in support of 

mandatory allergen labeling. 

TTB Response 

TTB is finalizing §§ 5.82 and 7.82 as 

proposed. As explained in section 

I.E.1.a. of this document, comments 

about mandatory allergen labeling are 

beyond the scope of this rulemaking. In 

the preamble to Notice No. 176, TTB 

specifically stated that there were a 

number of ongoing rulemaking 

initiatives related to labeling and 

advertising of alcohol beverages, 

including any substantive changes to 

the allergen labeling requirements, 

which TTB stated it would handle 

separately from the proposed rule due to 

their complexity. TTB will treat 

comments in favor of mandatory 

allergen labeling as suggestions for 

future rulemaking. 

c. Environmental, Sustainability, and 

Similar Statements 

In Notice No. 176, TTB proposed a 

new section in parts 4, 5, and 7 (see 

proposed §§ 4.85, 5.85, and 7.85) on the 

use of statements relating to 

environmental and sustainability 

practices. The proposed rule allowed 

statements related to environmental or 

sustainable agricultural practices, social 

justice principles, and other similar 

statements (such as, ‘‘Produced using 

100% solar energy’’ or ‘‘Carbon 

Neutral’’) to appear on labels as long as 

the statements are truthful, specific, and 

not misleading. Similarly, the proposed 

regulations provided that statements or 

logos indicating environmental, 

sustainable agricultural, or social justice 

certification (such as, ‘‘Biodyvin,’’ 

‘‘Salmon-Safe,’’ or ‘‘Fair Trade 

Certified’’) may appear on labels of 

products that are actually certified by 

the appropriate organization. 

WineAmerica, the New York Farm 

Bureau, and Sazerac expressed support 

for the proposed regulations. However, 

some commenters, including the 

Brewers Association, DISCUS, and 

Comite ́ European des Enterprises Vins 

opposed the proposed provisions as 

unnecessary and unduly restrictive, and 

commented that they would delay the 

label review process. 

TTB Response 

TTB has determined that some 

commenters misunderstood the effect of 

the proposed regulations, and 

misconstrued the proposed regulation to 

require additional steps to the label 

review process, whereas the proposal 

simply clarified that the identified 

claims must be truthful, specific, and 

non-misleading, and that certification 

claims must be truthful. Nonetheless, 

TTB is not finalizing proposed §§ 5.85 

and 7.85 because TTB agrees that the 

general regulations on false or 

misleading claims adequately cover this 

issue. 

d. Use of the Term ‘‘Organic’’ 

Current TTB labeling regulations do 

not define the term ‘‘organic,’’ but 

instead provide that the optional use of 

the term ‘‘organic’’ in labeling and 

advertising must comply with 

regulations issued by the United States 

Department of Agriculture’s (USDA’s) 

National Organic Program (7 CFR part 

205), as the USDA interprets those 

regulations. Proposed §§ 4.84, 5.84, and 

7.84 would clarify current TTB 

regulations by editing existing language 

specifically stating that organic claims 

must conform with USDA regulations 

concerning the National Organic 

Program. DISCUS expressed support for 

the proposed regulation. TTB also 

received comments with regard to 

certification requirements that are 

specific to imported wine, which TTB 

will address when it finalizes the 

proposed wine regulations. 

TTB Response 

TTB is Finalizing §§ 5.84, and 7.84 as 

Proposed. 

e. Prohibited Labeling Practices in 

General 

Subpart G sets forth the prohibited 

labeling practices. Proposed §§ 4.101, 

5.101, and 7.101 provide that the 

prohibitions set forth in this subpart 

apply to any label, container, or 

packaging, and then sets out the 

definitions of those terms for purposes 

of this subpart. The prohibited practices 

include false statements and obscene or 

indecent depictions. The proposed rule 

restated and reorganized prohibitions 

currently found in the TTB regulations. 

DISCUS commented that this 

provision was unnecessary on the basis 

that it is ‘‘repetitive and addressed 

elsewhere.’’ 

TTB Response 

TTB is finalizing §§ 5.101, and 7.101 

as proposed. As previously noted, TTB 

proposed to divide the regulations 

addressing prohibited practices into 

three subparts: (1) Subpart F, practices 

that may be used under certain 

conditions, (2) subpart G, practices that 

are always prohibited, and (3) subpart 

H, practices that are prohibited only if 

they are used in a misleading manner on 

labels. This final rule adopts this 

organization; accordingly, it is necessary 

to provide for the substantive 

prohibitions in each subpart so that the 

reader does not need to refer to a 


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different subpart to understand the 

scope of the regulation. TTB believes 

this organization makes it easier for 

industry members to locate and 

understand necessary information. 

f. False or Untrue Statements 

Current regulations prohibit labeling 

statements that are false or untrue in 

any particular, or that, irrespective of 

falsity, directly, or by ambiguity, 

omission, or inference, or by the 

addition of irrelevant, scientific, or 

technical matter, tends to create a 

misleading impression. The FAA Act, 

27 U.S.C. 205(e), authorizes the issuance 

of regulations to prohibit statements that 

are either false or misleading. As 

previously noted, TTB’s proposed 

reorganization of the regulations places 

the prohibitions against false statements 

and misleading statements in separate 

subparts. Thus, the regulations on false 

statements were proposed in §§ 4.102, 

5.102, and 7.102 within Subpart G, 

Prohibited Labeling Practices, while the 

prohibitions on misleading statements 

were proposed in Subpart H, Labeling 

Practices That Are Prohibited If They 

Are Misleading. The American Craft 

Spirits Association (ACSA) expressed 

support for proposed § 5.102. However, 

DISCUS expressed opposition to the 

proposed restatement of existing 

regulations. 

TTB Response 

TTB is finalizing §§ 5.102 and 7.102 

as proposed. TTB believes that the 

reorganization of the existing 

prohibition will make the regulations 

easier to read and understand. The 

restatement of this statutory prohibition 

does not change current requirements or 

policy, but it does conform more closely 

to how commercial speech is analyzed 

under the First Amendment, which 

distinguishes between false commercial 

speech (which is not protected) and 

misleading commercial speech (which, 

if it is only potentially misleading, may 

be qualified in a manner that dispels the 

otherwise misleading impression 

created by the claim). See Pearson v. 

Shalala, 164 F.3d 650 (D.C. Cir. 1999). 

g. Obscene or Indecent 

Consistent with current regulations, 

proposed §§ 4.103, 5.103, and 7.103 

provide that wine, distilled spirits, and 

malt beverage labels, containers, or 

packaging may not contain any 

statement or representation that is 

obscene or indecent. 

The ACSA commented that they are 

‘‘neutral’’ on this provision. Sazerac 

commented that TTB was approving 

labels that, in its view, were ‘‘fairly 

obviously’’ obscene. 

Several commenters asserted that 

there were First Amendment concerns 

with the regulatory prohibition on 

‘‘obscene and indecent’’ materials on 

labels. DISCUS and the Brewers 

Association urged TTB to amend the 

regulations to remove the prohibition 

altogether. DISCUS suggested that the 

terms are ‘‘subjective concepts’’ and 

questioned ‘‘who will be the judge of 

what is indecent or obscene in the 

context of TTB labeling or advertising 

regulations.’’ The Brewers Association 

included this prohibition along with 

other regulations that it suggested were 

‘‘subject to First Amendment challenges 

as an agency of the federal government 

is forced to make subjective decisions 

approving or disapproving messages 

that brewers are communicating to 

consumers.’’ The Brewers Association 

suggested that this type of regulation 

would be better left to self-enforcement 

through trade associations. The New 

Civil Liberties Alliance commented that 

the proposed regulation provided 

discretion to TTB that was ‘‘inherently 

boundless because a licensing official 

must make his or her own ad hoc 

subjective determination as to whether 

the content of the COLA application 

meets his or her standards for decency.’’ 

The Wine Institute suggested 

amending the regulations to prohibit 

only obscene material, noting that 

indecent speech receives protection 

under the First Amendment, and 

suggesting that the relevant case law 

indicates ‘‘that such regulations are 

vulnerable to a First Amendment 

challenge.’’ In particular, the Wine 

Institute pointed to the decisions in two 

cases involving First Amendment 

challenges to efforts by States to ban 

alcohol beverage labels with vulgar or 

offensive images. See Bad Frog Brewery, 

Inc. v. N.Y. State Liquor Auth., 134 F.3d 

87 (2d Cir. 1998), and Flying Dog 

Brewery, LLLP v. Michigan Liquor 

Control Com’n, 597 Fed. Appx. 342 (6th 

Cir. 2015). 

TTB Response 

TTB is not adopting the suggestion to 

eliminate the prohibition on ‘‘obscene’’ 

material on labels or advertisements 

because the current regulatory 

prohibition simply incorporates the 

statutory prohibitions in 27 U.S.C. 

205(e)(4). Furthermore, it is well 

recognized that the First Amendment 

does not protect ‘‘obscene’’ speech or 

child pornography. See Sable 

Communications v. FCC, 492 U.S. 115, 

124 (1989). Thus, the statutory and 

regulatory prohibitions on ‘‘obscene’’ 

labels and advertisements do not violate 

the First Amendment. 

In evaluating whether labels are 

‘‘obscene,’’ TTB is mindful of the threepronged test established by the U.S. 

Supreme Court in Miller v. California, 

413 U.S. 15, 24–25 (1973). TTB 

recognizes that applying this test in a 

prior approval context is a difficult 

challenge. 

TTB agrees that the Wine Institute has 

raised a valid point about whether there 

is a distinction between ‘‘obscene’’ and 

‘‘indecent’’ speech under the FAA Act. 

TTB is aware that offensive speech that 

is not obscene receives protection under 

the First Amendment, and TTB is 

mindful of these First Amendment 

limitations when reviewing labels and 

advertisements. In Iancu v. Brunetti, 139 

S. Ct. 2294, 2299 (2019), the Supreme 

Court struck down a provision of the 

Lanham Act that barred the registration 

of ‘‘immoral’’ or ‘‘scandalous’’ 

trademarks, finding it to be a viewpointbased ban. The Court also noted that the 

Justices, in Matal v. Tam, 137 S. Ct. 

1744 (2017), had ‘‘found common 

ground in a core postulate of free speech 

law—the government may not 

discriminate against speech based on 

the ideas or opinions it conveys.’’ 

However, the FAA Act’s restriction on 

obscene and indecent speech is not a 

viewpoint-based restriction. TTB does 

not reject labels on the sole grounds that 

they might be offensive. Instead, as the 

Sazerac acknowledges, TTB has 

approved labels including content that 

some people may find offensive, 

including labels that include expletives 

or nudity in certain contexts, based on 

the First Amendment protections 

afforded to such speech under current 

case law. 

Because TTB did not seek specifically 

comments on this issue in Notice No. 

176, TTB believes that it cannot make 

any substantive changes to the existing 

standard without engaging in notice and 

comment rulemaking on the issue. TTB 

will treat the comments on this issue as 

suggestions for future rulemaking 

action, and will retain the statutory 

prohibition in existing regulations. 

Nonetheless, in applying that standard, 

TTB will continue to apply current case 

law under the First Amendment, and 

will not reject labels on the sole grounds 

that they may be offensive. As always, 

TTB urges industry members to 

consider that, while their products are 

intended only for adult consumption, 

labels on containers may be visible to 

children on store shelves. 

h. Subpart H––Labeling Practices 

Prohibited as Misleading 

Proposed §§ 4.122(a), 5.122(a), and 

7.122(a) set out the general prohibition 

against any statement or representation, 


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irrespective of falsity, that is misleading 

to consumers as to the age, origin, 

identity, or other characteristics of the 

wine, distilled spirits, or malt beverages, 

or with regard to any other material 

factor. Proposed §§ 4.122(b), 5.122(b), 

and 7.122(b) also provided as follows: 

‘‘For example, an otherwise truthful 

statement may be misleading because of 

the omission of material information, 

the disclosure of which is necessary to 

prevent the statement from being 

misleading.’’ This is not a new policy, 

but the proposed rule sets it out more 

clearly. 

The Wine Institute urged TTB to 

eliminate the examples in proposed 

§ 4.122 and elsewhere in the Code of 

Federal Regulations, suggesting that 

examples are better conveyed to 

industry via written guidance 

documents made available on the 

agency’s website. The Wine Institute 

stated that ‘‘[b]y providing examples of 

permissible or impermissible label 

statements in written guidance, TTB 

will be able to create or change 

examples and communicate this 

information to industry members in an 

expeditious manner as opposed to 

making further points of clarification or 

adjustments to the Code of Federal 

Regulations.’’ 

TTB Response 

This final rule adopts proposed 

§§ 5.122 and 7.122 as proposed. In this 

case, the example simply illustrates an 

important principle to facilitate industry 

understanding of the regulations, rather 

than a factual situation that might 

change with other circumstances. 

Accordingly, the final rule retains this 

example. 

i. General First Amendment Concerns 

Subject to certain limited exceptions, 

the FAA Act specifically requires 

industry members to obtain a certificate 

of label approval in order to prevent the 

introduction into interstate commerce of 

alcohol beverage containers that are not 

labeled in accordance with the 

implementing regulations. See 27 U.S.C. 

205(e). Nonetheless, TTB received some 

comments that raised general First 

Amendment concerns about the preapproval of labels to enforce the 

statutory prohibition on misleading 

statements on alcohol beverage labels 

subject to the FAA Act. 

NABI commented that while current 

case law does not protect misleading 

commercial speech, ‘‘it sets a high bar 

for the Federal Government in backing 

up and proving its claim that any one 

specific representation on a label or in 

an advertisement is misleading.’’ NABI 

further suggested that ‘‘waiting for 

consumer complaints about specific 

labels or advertisements may be the 

better approach than purely speculating 

in advance of approving a certificate of 

label approval (COLA) or pre-clearing a 

proposed advertisement.’’ 

The New Civil Liberties Alliance 

(NCLA), which describes itself as ‘‘a 

nonprofit civil rights organization 

founded to defend constitutional 

rights,’’ commented on several First 

Amendment issues. The NCLA stated 

that the proposed rule reformed ‘‘an 

overly burdensome regulatory system.’’ 

However, its comment also argues that 

‘‘COLAs are unconstitutional prior 

restraints on liberties guaranteed to all 

Americans by the First Amendment. To 

ameliorate the unconstitutional impact 

of restraints on speech, the Rule should 

apply the process and post-publication 

enforcement of the proposed labeling 

requirements for COLAs related to 

personalized labels * * * to all 

COLAs.’’ [Emphasis in original.] 

The NCLA comment questioned the 

distinction between the treatment of 

labels (which TTB reviews prior to the 

introduction of the product in interstate 

commerce) and advertisements (for 

which TTB does not require prior 

review). NCLA suggested that TTB 

instead amend the regulations to allow 

the approval of COLAs that include a 

‘‘template’’ of mandatory information, 

and stated that this approach would be 

a logical extension of TTB’s current and 

proposed policies regarding allowable 

revisions to approved labels and 

approval of personalized labels. 

The Washington Legal Foundation 

(WLF), a nonprofit, public-interest law 

firm and policy center, stated that while 

TTB’s proposed rule is in many ways 

clarifying, it ‘‘inadequately protects 

commercial-speech rights. TTB is 

interested in promoting marketplace 

civility and ensuring that consumers are 

not misled, but rules promoting these 

laudable aims must still avoid unduly 

chilling free speech rights under the 

First Amendment.’’ 

The Brewers Association (BA) 

submitted a comprehensive comment on 

this issue, stating as follows: 

As a basic policy, the BA respectfully 

suggests that TTB treat all types of label 

claims and trade dress in a similar manner. 

If claims, graphics, or other content on a label 

are misleading on the label as submitted, or 

if claims obscure or improperly modify 

mandatory information, TTB should address 

whatever elements of the label are 

misleading. Otherwise, the BA believes that 

TTB should maintain its focus on mandatory 

information concerning malt beverages. TTB 

could expressly reserve the right to initiate 

label revocation proceedings or enforcement 

action to seek corrections if claims on labels 

are determined to be false or misleading via 

competitor complaints or other credible 

sources, such as the Federal Trade 

Commission or recognized third party 

accreditation organizations. 

Various proposals in Notice 176 impose 

content restrictions based on existing TTB 

regulations that are difficult or impossible for 

TTB to enforce in an evenhanded manner 

and may violate commercial speech 

protections guaranteed by the First 

Amendment. See, e.g., Cabo Distributing Co., 

Inc. v. Brady, 821 F. Supp. 601 (N.D. Cal. 

1992); Bad Frog Brewery v. New York State 

Liquor Authority, 134 F.3d 87 (1998). The 

recent U.S. Supreme Court opinion in Iancu 

v. Brunetti, decided on June 24, 2019 is also 

instructive on the topic of regulation of 

potentially offensive speech. 

Specific restrictions proposed § 7.126 (use 

of flags); § 7.127 (use of certain seals), § 7.124 

(disparaging competitors), and § 7.103 

(obscene or indecent statements or 

representations) are all subject to First 

Amendment challenges as an agency of the 

federal government is forced to make 

subjective decisions approving or 

disapproving messages that brewers are 

communicating to consumers. The BA 

recommends that TTB delete these sections 

from the final regulations. 

Hundreds of examples exist of labels 

approved by TTB that arguably violate 

existing regulations as well as the proposed 

regulations. This reality places TTB in an 

untenable situation. To the extent that any of 

the restrictions referenced above pose 

legitimate government concerns, they can be 

addressed under proposed § 7.122, which 

lays out a solid approach to making 

determinations on false and misleading 

labels. If TTB attempts to enforce §§ 7.126, 

7.127, 7.124, and 7.103, a First Amendment 

challenge is possible, and the archaic 

restrictions seem unlikely to survive. In the 

past when confronted by an analogous 

situation, TTB properly identified health 

claims as a legitimate policy concern, 

engaged in rulemaking, and promulgated a 

comprehensive and defensible regulation that 

is included in Notice 176 at § 7.129. 

TTB Response 

After carefully reviewing the 

comments, TTB has concluded that its 

proposed regulations comply with First 

Amendment case law regarding 

regulation of commercial speech and the 

statutory requirement to pre-approve 

labels to prevent misleading claims. 

In Central Hudson Gas & Electric 

Corp. v. Public Services Commission, 

447 U.S. 557, 563–566 (1980), the 

Supreme Court held that in order to 

regulate commercial speech, the 

Government must satisfy a four-prong 

test. First, the First Amendment protects 

expression only if it concerns lawful 

activity and is not misleading. Second, 

the Government must establish a 

substantial interest. Third, the 

regulation must directly advance the 

governmental interest asserted. Finally, 

the regulation must be no more 


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extensive than necessary to serve the 

interest asserted. 

In two cases involving alcohol 

beverages, the Supreme Court struck 

down bans on truthful and nonmisleading commercial speech. In 

Rubin v. Coors Brewing Co., 514 U.S. 

476, 491 (1995), the Supreme Court 

applied the Central Hudson analysis in 

striking down the FAA Act’s prohibition 

of statements of alcohol content on malt 

beverage labels unless required by State 

law. In 44 Liquormart, Inc. v. Rhode 

Island, 517 U.S. 484 (1996), the 

Supreme Court struck down Rhode 

Island’s ban on advertising the price of 

alcohol beverages on First Amendment 

grounds. However, these decisions did 

not address the Government’s authority 

to regulate actually or potentially 

misleading commercial speech 

regarding alcohol consumption. TTB 

also notes that courts have expressed a 

general First Amendment preference for 

additional disclosure over bans on 

potentially misleading commercial 

speech. See, e.g., Pearson v. Shalala, 

164 F.3d 650, 656 (D.C. Cir. 1999), citing 

Bates v. State Bar of Arizona, 433 U.S. 

350, 376 (1977) (where attorney 

advertising was not inherently 

misleading, ‘‘the preferred remedy is 

more disclosure, rather than less.’’). 

To the extent that some comments are 

suggesting that the FAA Act’s COLA 

requirements are unconstitutional, TTB 

disagrees. A law acts as a prior restraint 

when it mandates that a speaker seek 

government permission before engaging 

in protected expression; however, the 

Supreme Court has indicated that the 

prior-restraint doctrine may not apply to 

commercial speech. See Central Hudson 

Gas & Elec. Corp v. Public Serv. 

Comm’n, 447 U.S. 557, 571 n. 13 (1990) 

(stating that ‘‘commercial speech is such 

a sturdy brand of expression that 

traditional prior restraint doctrine may 

not apply to it’’). 

In a recent case involving a First 

Amendment challenge to TTB’s denial 

of a petition to allow specific health 

claims in the labeling and advertising of 

distilled spirits regarding the alleged 

DNA-protective properties of an 

ingredient added to alcohol beverages, 

the D.C. Circuit declined again to rule 

on the issue of whether traditional prior 

restraint doctrine applies to commercial 

speech. See Bellion Spirits, LLC v. 

United States, 7 F.4th 1201, 1213 (D.C. 

Cir. Aug. 6, 2021) (‘‘We have previously 

left open whether the prior-restraint 

doctrine applies in the context of 

commercial speech * * * and we do so 

again here. Even assuming the 

applicability of prior-restraint 

principles, Bellion fails to demonstrate 

an unconstitutional prior restraint.’’). 

With respect to a facial challenge to 

TTB’s COLA system, the court held as 

follows: 

By imposing sufficiently ‘‘narrow, 

objective, and definite standards,’’ 

Shuttlesworth v. City of Birmingham, 394 

U.S. 147, 151, 89 S.Ct. 935, 22 L.Ed.2d 162 

(1969), the COLA scheme adequately 

channels TTB’s discretion. The COLA 

regulation provides that TTB ‘‘will approve’’ 

specific health claims ‘‘only if the claim is 

truthful and adequately substantiated by 

scientific or medical evidence; sufficiently 

detailed and qualified with respect to the 

categories of individuals to whom the claim 

applies; adequately discloses the health risks 

associated with both moderate and heavier 

levels of alcohol consumption; and outlines 

the categories of individuals for whom any 

levels of alcohol consumption may cause 

health risks.’’ See 27 CFR 5.42(b)(8)(ii)(B)(2). 

Those conditions of approval are 

‘‘sufficiently definite to constrain [TTB] 

within reasonable bounds.’’ See Nutritional 

Health Alliance v. Shalala, 144 F.3d 220, 228 

(2d Cir. 1998). 

In addition, the COLA process * * * 

channels TTB’s decisionmaking through 

adequately strict deadlines. See Freedman v. 

Maryland, 380 U.S. 51, 58, 85 S.Ct. 734, 13 

L.Ed.2d 649 (1965). The regulation states that 

TTB must respond to an application within 

90 days, unless it elects to use one 90-day 

extension. See 27 CFR 13.21(b). Indeed, 

applicants who do not receive a decision 

from TTB within the specified time period 

may file an administrative appeal. Id. We 

find no ‘‘unbridled’’ discretion in that 

scheme. See City of Lakewood, 486 U.S. at 

757, 108 S.Ct. 2138. 

See Bellion Spirits at 1213. 

Accordingly, it is TTB’s position that 

the COLA regulations do not represent 

an unconstitutional prior restraint on 

commercial speech. 

j. Guarantees 

The FAA Act specifically authorizes 

the issuance of regulations to prohibit, 

irrespective of falsity, such statements 

relating to ‘‘guarantees’’ as the Secretary 

of the Treasury ‘‘finds to be likely to 

mislead the consumer.’’ See 27 U.S.C. 

205(e). Proposed §§ 4.123, 5.123 and 

7.123 prohibit the use of guarantees that 

are likely to mislead the consumer. 

However, TTB does not prohibit moneyback guarantees. This is a restatement of 

existing policy currently found in 

§§ 4.39(a)(5), 5.42(a)(5), and 7.39(a)(5), 

with minor modifications for clarity. 

In addition to the First Amendment 

general concerns that commenters 

raised about this provision and other 

provisions relating to misleading 

speech, TTB received two comments in 

opposition to the proposed provisions 

on guarantees on the ground that they 

were unnecessary. ADSA commented 

that the provisions are from a bygone 

era, and DISCUS suggested that the 

proposals were vague and unnecessary. 

TTB Response 

TTB is finalizing proposed §§ 5.123 

and 7.123 without change. TTB agrees 

that the general provisions on 

misleading statements might cover this 

issue; however, the intent of the 

regulation is to implement the specific 

statutory language on this issue. 

Accordingly, TTB believes that these 

specific regulations still serve a useful 

purpose. 

k. Statements That Are Disparaging of a 

Competitor’s Products 

Current regulations mirror the 

language in the FAA Act, 27 U.S.C. 

205(e), which simply prohibits labeling 

and advertising statements that ‘‘are 

disparaging of a competitor’s products.’’ 

See 27 U.S.C. 205(e) and (f). In proposed 

§§ 4.124, 5.124, and 7.124, TTB sought 

to clarify longstanding ATF and TTB 

policy (as expressed in T.D. ATF–180, 

49 FR 31667, August 8, 1984) that a 

competitor’s product is disparaged 

within the meaning of the statutory 

prohibition only when statements or 

claims about the product, or relating to 

the product, are false or would tend to 

mislead the consumer. This policy does 

not preclude additional information 

such as ‘‘puffery’’ statements made 

about one’s own product, nor does it 

prohibit truthful and nonmisleading 

comparative statements or claims that 

place the competitor’s product in an 

unfavorable light. TTB’s intention was 

to clarify the prohibition in a manner 

that conformed to current case law 

about protections afforded to truthful 

and non-misleading commercial speech. 

In the proposed regulatory text, TTB 

also included examples of statements 

that would, or would not, be prohibited 

under this provision. For example, TTB 

would not prohibit a statement of 

opinion such as ‘‘We think our 

[product] tastes better than any other 

[product] on the market.’’ However, TTB 

would consider a truthful statement 

such as ‘‘We do not add arsenic to our 

[product]’’ to be disparaging because it 

falsely implies that other producers do 

add arsenic to their products. 

Furthermore, the proposed regulations 

provide that labels may not include 

statements that disparage their 

competitor’s products by making 

specific allegations, such as ‘‘Brand X is 

not aged in oak barrels,’’ when such 

statements are untrue. 

In its comment, the Washington Legal 

Foundation (WLF) suggested that the 

prohibition on false or misleading 

‘‘disparaging’’ statements about a 

competitor’s products would ‘‘violate 

commercial-speech rights under the 

First Amendment.’’ WLF pointed out 


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that a recent Supreme Court case, Matal 

v. Tam, 137 S. Ct. 1744 (2017), struck 

down the ‘‘disparagement clause’’ of the 

Lanham Act, which prohibited Federal 

trademark registration for marks that 

might disparage any persons living or 

dead. WLF noted that the Court held 

that the ban ‘‘offends a bedrock First 

Amendment principle: Speech may not 

be banned on the ground that it 

expresses ideas that offend.’’ 137 S. Ct. 

at 1751. WLF noted that the Court 

emphasized that heightened scrutiny 

applies when a law or regulation 

engages in viewpoint discrimination. 

The comment from NABI noted that 

as a general matter, the Supreme Court 

has rejected ‘‘paternalism’’ on the part 

of the Federal Government in 

prohibiting commercial speech, and 

suggested that review by TTB of 

consumer deception after receipt of 

consumer complaints might be a better 

approach than ‘‘purely speculating’’ in 

advance of approving a label. The NABI 

comment specifically referenced the 

proposed rule on ‘‘disparaging’’ 

statements. DISCUS commented in favor 

of removing both the proposed and 

existing language on disparaging 

statements, and suggested that proposed 

‘‘Section 5.122 should serve as the only 

regulation governing truthful and 

misleading labeling claims. In that 

regard, the instant rulemaking has 

several proposed rules governing 

truthful, non-misleading statements 

regarding distilled spirits labels, 

containers, and packaging when only 

one rule is necessary.’’ 

The Brewers Association suggested 

that the rule on disparaging statements 

was one of several issues that were 

better left to self-regulation by the 

alcohol beverage industries, noting that 

the Brewers Association and other 

industry trade associations maintain 

advertising codes that address obscene, 

indecent, and disparaging materials. 

The Association also noted that the 

‘‘Federal Trade Commission has 

repeatedly expressed support for 

voluntary industry initiatives to regulate 

offensive alcohol beverage advertising 

and for advertising of many other 

consumer products and services. See, 

e.g., Federal Trade Commission, SelfRegulation in the Alcohol Industry: 

March 2014, p. 34.’’ 

TTB received a comment in support 

of the proposed language on disparaging 

statements from ACSA. Other trade 

associations suggested amendments to 

the proposed revision on disparaging 

statements. Wine Institute commented 

in support of the proposed amendments, 

but stated that the codified regulations 

should not include examples of 

permissible or impermissible label 

statements, believing that written 

guidance on TTB’s website better 

conveys such examples to industry. 

Accordingly, Wine Institute 

recommended removing the examples 

from the proposed regulation. 

ADSA questioned the continued need 

for any specific regulation that prohibits 

false or misleading statements that are 

disparaging about competitors, and 

suggested that such statements would be 

covered by the general prohibition on 

false or misleading statements. ADSA 

was particularly concerned that the 

second example in the proposed rule, 

about not adding arsenic to a distilled 

spirits product, was capable of 

misinterpretation and ‘‘could be 

construed as suggesting that any claim 

about the absence of an ingredient or 

feature (e.g., ‘gluten-free’) constitutes a 

prohibited disparaging claim.’’ 

Accordingly, ADSA stated that ‘‘[a]t a 

minimum, TTB should delete and not 

replace the examples in the current 

proposal.’’ 

TTB Response 

TTB notes that it designed the 

proposed amendment to the prohibition 

on statements that are ‘‘disparaging’’ of 

a competitor’s products to address First 

Amendment issues and clarify 

longstanding policy that the prohibition 

applies only to false or misleading 

statements. 

Unlike the ‘‘disparagement clause’’ of 

the Lanham Act, which applied to 

marks that might disparage any 

individuals, living or dead, regardless of 

whether the information conveyed was 

truthful and non-misleading, TTB 

narrowly focused the proposed rule on 

statements that are false or misleading, 

and the disparage the products of a 

competitor. Under the first prong of the 

Central Hudson test, the First 

Amendment does not protect false or 

misleading commercial speech. The 

language of the FAA Act does not 

specify this important qualification, but, 

as explained above, this has been the 

position of TTB and its predecessor 

agency since the 1980s. Unlike the 

provision of the Lanham Act that was 

struck down in Matal v. Tam, the 

disparagement prohibition in the 

proposed rule was thus specifically 

aimed at commercial speech (relating to 

the products of a competitor) that is 

false or misleading, and thus serves the 

dual purpose under the FAA Act of 

protecting fair competition and 

preventing consumer deception. 

Based on the comments regarding the 

examples, TTB agrees that in this 

particular situation, the proposed 

examples seemed to confuse people 

rather than shed light on its position. 

Accordingly, TTB is removing the 

examples from the language of the final 

rule. Instead, the final rule prohibits 

only false or misleading statements that 

explicitly or implicitly disparage a 

competitor’s product, and does not 

prohibit statements of opinion or 

truthful and non-misleading 

comparisons between products. This 

language is entirely consistent with 

current case law under the First 

Amendment. 

l. Tests or Analyses 

Proposed §§ 4.125, 5.125 and 7.125 

prohibit statements or representations 

of, or relating to, analyses, standards, or 

tests, whether or not truthful, that are 

likely to mislead the consumer. These 

proposed provisions incorporate current 

policy, but also provide new examples 

of misleading statements or 

representations under these sections, 

which TTB intends to illustrate the 

principle that a truthful statement about 

a test or standard may nonetheless be 

misleading as presented. 

The ACSA expressed its support for 

the proposed regulation. Wine Institute 

suggested the removal of the example of 

a misleading statement regarding a test 

or analysis. The Mexican Chamber of 

the Tequila Industry and the Tequila 

Regulatory Council supported the 

inclusion of examples, and requested 

inclusion of a new example relating 

specifically to the testing of tequila by 

anyone other than an authorized 

conformity assessment body. 

Furthermore, the Tequila Regulatory 

Council proposed that ‘‘in the case of 

tequila, no statements or declaration of 

test, other than the one provided by the 

conformity assessment body in the form 

of a NOM [Norma Oficial Mexicana] 

mark, be allowed’’ and that TTB should 

require a NOM mark on any label of 

Tequila bottled in the United States. 

The comment states that this mark, 

which includes the four-digit code 

assigned to the distiller, is a sign of 

quality and product assurance. Finally, 

DISCUS and ADSA opposed the 

inclusion of § 5.125, on the same 

grounds that they opposed the 

provisions on guarantees. Among other 

things, they commented that the general 

provisions on misleading statements 

would cover misleading statements 

relating to analyses, standards, or tests. 

TTB Response 

TTB is finalizing proposed §§ 5.125 

and 7.125 without change. TTB agrees 

with DISCUS and ADSA that the general 

provisions on misleading statements 

might cover this issue; however, the 

intent of the regulation is to provide 

guidance that is more specific to 


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industry members and consumers as to 

how they may depict statements about 

standards, analyses, and tests on a label 

without running afoul of the statute and 

regulations. Accordingly, TTB believes 

that these specific regulations, including 

the example provided, serve a useful 

purpose. 

TTB is not adopting the suggestions 

made in the comments from the 

Mexican Chamber of the Tequila 

Industry and the Tequila Regulatory 

Council for the inclusion of a new 

example in the regulation regarding 

testing by anyone other than an 

authorized conformity assessment body. 

Similarly, TTB is not adopting the 

Tequila Regulatory Council’s suggestion 

that a NOM mark be required on labels 

of Tequila bottled in the United States, 

as this would require more mandatory 

information to appear on Tequila labels. 

TTB believes that these comments relate 

specifically to Tequila rather than to the 

general prohibition on misleading 

testing claims, and that they fall outside 

of the scope of the proposals on which 

TTB solicited comments in Notice No. 

176. 

m. Depictions of Government Symbols 

Under current regulations, TTB 

prohibits representations relating to the 

American flag or the U.S. armed forces 

from appearing on alcohol beverage 

labels in order to prevent 

misconceptions that the U.S. 

government or its armed forces endorse, 

or otherwise supervised the production 

of, the alcohol beverage. However, the 

regulations prohibit the use of flags from 

other countries only where it would be 

misleading. The regulations on U.S. and 

foreign flags are based on the same 

statutory provision of the FAA Act at 27 

U.S.C. 205(e)(5), which prohibits 

deception of the consumer by use of a 

name or representation of individuals or 

organizations when such use creates a 

misleading impression of endorsement. 

Consistent with the statutory 

prohibition on which TTB bases these 

regulations, it is TTB’s current policy to 

enforce this regulatory prohibition only 

where such representations might tend 

to mislead consumers. Thus, TTB 

proposed to amend the regulations to 

remove the blanket prohibition against 

the use of representations of, or relating 

to, the American flag, the armed forces 

of the United States, or other symbols 

associated with the American flag or 

armed forces. Therefore, proposed 

§§ 4.126, 5.126, and 7.126, retain the 

prohibition against the use of such 

symbols or images where they create the 

false or misleading impression that the 

government entity represented has 

endorsed or was otherwise affiliated 

with the labeled product. Furthermore, 

each of these proposed sections 

specifically provides that the section 

does not prohibit the use of a flag as part 

of a claim of American origin or a claim 

of another country of origin. 

TTB received several comments in 

support of removing the blanket ban on 

the use of flags on alcohol beverage 

labels, including comments from 

WineAmerica, the New York Farm 

Bureau, DISCUS, ACSA, and an attorney 

in the alcohol beverage field. ADSA 

suggested that as amended, the 

provision was meaningless. Wine 

Institute commented that a specific 

provision on flags was unnecessary and 

should be covered by a general 

misleading provision. Comments from 

the Brewers Association and the New 

Civil Liberties Alliance raised First 

Amendment concerns about several 

regulatory provisions, including this 

one. 

On the other hand, TTB received two 

comments that favored a blanket ban on 

the use of the American flag on labels 

or in advertisements. One of these 

comments, from the Missouri Craft 

Distillers, raised concerns about using 

national symbols for marketing 

purposes. The other comment, from 

Sazerac, suggested that TTB’s proposal 

is contrary to the Federal Flag Code. 

TTB Response 

TTB is finalizing §§ 5.126 and 7.126 

as proposed. The regulations on 

depictions of government symbols are 

based on the statutory provisions of the 

FAA Act (27 U.S.C. 205(e)(5)) that 

prohibit deception of the consumer by 

use of name or representation of 

individuals or organizations when such 

use creates a misleading impression of 

endorsement or affiliation. As stated in 

Notice No. 176 and above, the proposed 

regulations remove the blanket ban on 

use of flags and other symbols of the 

United States and Armed Forces. 

Rather, the proposed regulations set out 

TTB’s current policy prohibiting the use 

of these symbols only when they create 

a misleading impression that there was 

some sort of endorsement by, or 

affiliation with, the governmental entity 

represented. 

With regard to Sazerac’s comment, 

TTB notes that the Federal Courts have 

not ruled on the validity of the Flag 

Code or other criminal provisions with 

regard to the use of the image of the 

American flag for marketing purposes. 

TTB believes that the use of an image of 

a flag as part of a general message of 

patriotism may be protected under the 

First Amendment, even if that message 

appears on a product label. For more 

information, see the general discussion 

in the Congressional Research Service’s 

‘‘Frequently Asked Questions About 

Flag Law,’’ dated October 7, 2019, 

which can be found on the website at 

https://crsreports.congress.gov/product/ 

pdf/R/R45945. 

In any case, TTB’s regulations 

implementing the FAA Act’s ban on the 

use of images that create a misleading 

impression that an alcohol beverage is 

endorsed or otherwise affiliated with 

any private or public organization does 

not intersect with or otherwise affect the 

enforcement of the Flag Code, which 

governs the handling and display of the 

United States flag. Thus, TTB does not 

address the Flag Code in its analysis of 

this regulation. 

n. Depictions Simulating Government 

Stamps Relating to Supervision 

Proposed §§ 4.127, 5.127, and 7.127 

retain prohibitions against depictions 

simulating government stamps or 

relating to government supervision but 

provide that these representations are 

only prohibited if they create the 

misleading impression that the alcohol 

beverage is manufactured under 

government authority. In Notice No. 

176, TTB specifically solicited 

comments on whether there is still a 

need for regulations on this issue. 

DISCUS and the ACSA commented in 

favor of the proposal. However, several 

commenters, including Wine Institute, 

ADSA, and the Williams Group 

expressed the view that specific 

provisions on this issue were no longer 

necessary, as they reflected a ‘‘bygone 

era’’ and it is questionable as to whether 

such stamps or other symbols retain any 

meaning for consumers today. The 

Brewers Association included this 

provision in its general comment raising 

First Amendment concerns. 

TTB Response 

Based on the comments, TTB agrees 

that there is no longer a need to include 

specific prohibitions on this issue. TTB 

will continue to cover misleading 

representations on this issue via the 

general prohibition on misleading 

labeling statements. Accordingly, this 

final rule does not include proposed 

§§ 5.127 and 7.127. 

o. Health-Related Claims 

In proposed §§ 4.129, 5.129, and 

7.129, TTB set out current regulations 

pertaining to health-related statements 

without change. ACSA expressed 

support for these provisions as 

proposed. The Wine Institute and St. 

George Spirits sought clarification on 

the use of specific terms used in these 

provisions, and the Wine Institute 

suggested that TTB publish guidance 


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with regard to specific issues that the 

regulations present. 

TTB Response 

TTB is finalizing §§ 5.129 and 7.129 

as proposed. However, TTB will 

consider the comments it received 

regarding the issuance of public 

guidance on issues pertaining to the 

regulations on health-related statements. 

p. Appearance of Endorsement 

Consistent with current regulations, 

proposed §§ 4.130, 5.130, and 7.130 

maintains TTB’s prohibition on the use 

of the name of a living person or 

existing private or public organization if 

the use of that name or a representation 

misleads the consumer to believe that 

the product has been endorsed, made, or 

used by, or produced for, or under the 

supervision of, or in accordance with 

the specifications of, such individual or 

organization. The difference between 

the current and proposed regulations is 

that proposed §§ 4.130, 5.130, and 7.130 

made it more clear that actual 

endorsements are permitted and that 

TTB may request documentation 

supporting a claim of endorsement. 

DISCUS commented in favor of 

retaining the existing regulations, 

without explaining the basis for this 

comment. 

TTB Response 

TTB believes the proposed regulations 

reflect the same policy as the current 

regulations but are easier to understand. 

Accordingly, TTB is finalizing §§ 5.130 

and 7.130 as proposed, but without the 

language that TTB may request 

documentation supporting a claim of 

endorsement. TTB is removing this 

language because it is true of any claim. 

The final rule also includes language 

in §§ 5.130 and 7.130 that was 

inadvertently omitted from the 

proposed rule, for consistency with the 

statutory provisions at 27 U.S.C. 

205(e)(5). As amended, the regulatory 

language, like the statutory language, 

specifically provides that the provisions 

on implied endorsements do not apply 

to the use of the name of any person 

engaged in business as a distiller, 

brewer, rectifier, blender, or other 

producer, or as an importer, wholesaler, 

retailer, bottler, or warehouseman of 

distilled spirits, wine, or malt beverages. 

The legislative history of the FAA Act, 

as reflected in the Report of the House 

Committee on Ways and Means (H.R. 

Rep. No. 1542, 74th Cong., 1st Sess., at 

13), explains that this ‘‘provision does 

not extend to cases of conflict within 

the industry as to proprietary rights in 

trade or brand names.’’ This is 

consistent with TTB’s longstanding 

position, as stated on the COLA form, 

that its issuance of a COLA in no way 

confers trademark protection. 

The final rule also includes a 

‘‘grandfathering’’ provision that is found 

in the statutory language, regarding 

names that were in use by the industry 

member or its predecessors in interest 

prior to August 29, 1935, the date that 

the FAA Act was enacted. While TTB 

believes it is unlikely that such 

‘‘grandfathered’ names are still being 

used, we are retaining the statutory 

language in the final rule out of an 

abundance of caution. 

8. Subpart I—Standards of Identity 

a. Geographic Names 

In Notice No. 176, TTB proposed to 

reorganize and amend existing 

regulations setting out the conditions 

under which geographic names for 

distilled spirits and malt beverages may 

be used on a label as, or as part of, the 

designation of the product. 

For distilled spirits, the proposed 

regulations at § 5.154 sought to clarify 

and update the rules currently found in 

27 CFR 5.22(k) and (l). These 

regulations allow ‘‘generic’’ names (i.e., 

names that have lost their geographical 

significance by usage and common 

knowledge) to be used to designate 

products from places other than the 

geographic areas otherwise indicated by 

the name. Current regulations provide 

that ‘‘London dry gin’’ and ‘‘Geneva 

(Hollands) gin’’ are examples of generic 

names. This means, for example, that 

‘‘London dry gin’’ may be used on the 

label of a product that is produced 

somewhere other than London, and no 

modifier such as ‘‘type’’ would be 

required for such a product. 

The proposed regulations provided 

that geographic names that have not 

been found to be ‘‘generic’’ may not be 

used on products made outside of the 

place indicated by the name, unless 

TTB determines that the name 

represents a type of distilled spirit, in 

which case the designation must 

include a qualifier such as ‘‘type’’ or 

‘‘style’’ or a statement indicating the 

true place of production. TTB proposed 

to list names of specific products that 

fall within the categories of products 

without geographical designations that 

are associated with a particular 

geographical region. Similarly, for malt 

beverages, TTB proposed to clarify the 

requirements for the use of geographical 

names, which are currently set out in 27 

CFR 7.24(f) though (h), and to add to the 

regulations several established generic 

names as well as names of types of malt 

beverages that require a qualification 

that indicates the true place of 

production. 

In response to these proposals, TTB 

received a significant number of 

comments from various interested 

parties, including distilled spirits and 

malt beverage producers, domestic and 

foreign trade associations, and foreign 

governments. The European Union (EU) 

expressed concern that certain names of 

distilled spirits and malt beverages 

listed in TTB’s regulations ‘‘correspond 

to EU [geographical indications].’’ 

Likewise, Spirits Europe commented 

that ‘‘a number of names quoted are 

registered as geographical indications in 

the EU (for example Ouzo, Aquavit).’’ 

Furthermore, many commenters, 

including the EU, opposed certain 

aspects of TTB’s proposal that allowed 

for the use of the terms ‘‘type’’ and 

‘‘style’’ on the grounds that it would 

violate provisions of the Agreement on 

Trade-Related Aspects of Intellectual 

Property Rights (TRIPS). For instance, 

DISCUS commented that the proposed 

regulations appear inconsistent with 

Article 23 of the Agreement and 

‘‘quer[ied] whether TTB has considered 

its applicability.’’ Likewise, the NABI 

encouraged TTB to ‘‘review the U.S. 

obligations [under TRIPS] to ensure that 

the U.S. is in compliance.’’ 

Furthermore, several commenters 

suggested that the use of the terms 

‘‘type’’ and ‘‘style’’ in conjunction with 

a geographical designation creates 

potential for consumer confusion. For 

example, FEVS commented that 

allowing for the use of ‘‘type’’ or ‘‘style’’ 

would be ‘‘extremely confusing and 

misleading to consumers as to the 

nature and essential qualities of the 

product’’ being purchased. Similarly, 

DISCUS commented that ‘‘the use of the 

terms ‘style’ and ‘type’ would be 

extremely misleading to consumers in 

particular as it relates to the distinctive 

products of other nations.’’ The Mexican 

Chamber of the Tequila Industry stated 

its belief that the use of the terms ‘‘type’’ 

or ‘‘style’’ on distinctive products 

‘‘undermines the traditional culture and 

social context associated with it’’ and 

that ‘‘labels using the name of the 

distinctive product should only be 

allowed when certified according to its 

standard of identity.’’ The Republic of 

Ireland stated that ‘‘use of the words 

‘Irish type’ or ‘Irish style’ on whiskeyrelated goods will convey an improper 

association with Irish Whiskey and is an 

evocation of Ireland when such 

products will not have been produced 

in Ireland.’’ 

Several commenters proposed further 

amendments to the regulations. For 

instance, an individual commenter 

requested that ‘‘Berliner weiss [be] 


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added to the list of recognized nongeographical beer styles’’ and Sazerac 

requested that TTB ‘‘move ‘Ojen’ and 

‘Swedish Punch’ to the list of products 

that are associated with a particular 

place that have become generic, and 

therefore may be manufactured in any 

place.’’ The BNIC requested that TTB 

add language to its regulations to 

‘‘[make] absolutely clear that when a 

geographical designation is also a 

standard of identity (e.g., a type 

designation), that designation cannot be 

used on a label or in advertising except 

in conformity with that standard of 

identity.’’ ACSA supported the intent of 

TTB’s proposal but stated that 

‘‘clarification and additional protections 

are necessary in order to avoid 

misleading consumers and to protect 

regional and national American spirit 

designations.’’ Specifically, ACSA 

recommended that ‘‘TTB recognize and 

protect any spirits designations that are 

a product of a specific geographic region 

and whose production standard have 

been formally agreed by an organized 

cohort of producers in that region such 

that their products are genuinely 

differentiated from the category.’’ 

Furthermore, ACSA suggested that the 

terms ‘‘type’’ and ‘‘style’’ be required to 

appear ‘‘on the same line and in the 

same font as the geographical 

designation stated.’’ 

With regard to the proposed 

regulations for malt beverages, Beverly 

Brewery Consultants questioned 

whether ‘‘Munich,’’ ‘‘Munchner,’’ and 

‘‘Kulmbacher’’ should still be 

recognized as being distinctive types 

that may be qualified with the word 

‘‘type’’ or ‘‘American’’ or some other 

statement indicating the true place of 

production. On the other hand, the 

Brewers Association suggested that the 

proposed rule would require labeling 

changes and suggested that ‘‘[a]ny 

attempt at this point in time to 

disentangle American and European 

geographic designations for beer styles 

is almost certain to result in arbitrary 

decisions.’’ Finally, an owner of 

Schilling Beer Co. asked why TTB had 

not yet recognized ‘‘IPA’’ (which is an 

abbreviation of the designation ‘‘India 

Pale Ale’’) as a recognized style of beer. 

TTB Response 

After reviewing and considering the 

comments received, TTB will not move 

forward, at this time, with the proposed 

reorganization and clarifying 

amendments to the existing regulations 

on geographical names for distilled 

spirits and malt beverages. Instead, the 

final regulations for distilled spirits 

(§ 5.154) and malt beverages (§ 7.146) 

retain the provisions of the current 

regulations as they appear in sections 27 

CFR 5.22(k)–(l) and 27 CFR 7.24(f)–(h), 

respectively. As several commenters 

raised issues relating to compliance 

with international agreements to which 

the United States is a Party, TTB 

believes that it must engage in further 

consultation with other government 

agencies on these matters prior to taking 

further action on the proposed 

amendments. For this reason, TTB will 

also evaluate the comments that address 

existing regulations as suggestions for 

further rulemaking. 

TTB notes that its decision to retain 

the current regulations without 

incorporating the proposed amendments 

does not represent any change in TTB’s 

current policy on the matter of 

geographical names, as set forth in TTB 

guidance or otherwise. Thus, for 

example, while the final rule does not 

specifically include Scotch ale (Scottish 

ale), and Russian Imperial Stout 

(Imperial Russian Stout) as examples of 

generic designations for malt beverages, 

TTB has already issued public guidance 

recognizing these names as generic. 

Accordingly, brewers may continue to 

use ‘‘Imperial Russian Stout’’ or 

‘‘Russian Imperial Stout’’ and ‘‘Scotch 

Ale’’ or ‘‘Scottish Ale’’ on labels to 

describe this type of malt beverage 

without the addition of any qualifying 

statements, such as ‘‘type,’’ ‘‘American,’’ 

etc. Similarly, this final rule will not 

affect the continued validity of any 

certificates of label approval that TTB 

has issued for malt beverage or distilled 

spirits labels that include geographical 

names (such as approvals issued for 

‘‘Ojen’’ products made in the United 

States). 

TTB is finalizing the proposed change 

regarding the recognition of ‘‘Andong 

Soju’’ in the regulations in § 5.154. 

Pursuant to Article 2.13.2 of the United 

States–Korea Free Trade Agreement, the 

United States agreed to recognize 

Andong Soju as a distinctive product of 

the Republic of Korea. See TTB Ruling 

2012–3. 

Accordingly, the final rule includes 

Andong Soju in the examples of 

geographical names that may not be 

used on labels for distilled spirits 

produced in any other place than the 

particular place of region indicated in 

the name. With regard to the comment 

about recognition of ‘‘IPA’’ as a type of 

malt beverage, TTB notes that the 

designation ‘‘India Pale Ale’’ has been 

recognized as a generic designation 

since the issuance of the first malt 

beverage labeling rules under the FAA 

Act in 1936. However, the abbreviation 

‘‘IPA’’ is not recognized as a designation 

for a malt beverage. It is TTB’s policy is 

to allow ‘‘IPA’’ to appear as additional 

information on malt beverage labels; 

however, TTB has not allowed this 

abbreviation to suffice as the class/type 

designation without an additional 

designation (such as ‘‘ale,’’ ‘‘beer,’’ or 

‘‘India Pale Ale’’). Because TTB did not 

solicit comments on whether the 

industry and consumers recognize the 

term ‘‘IPA’’ (standing alone on a label) 

to mean the same thing as ‘‘India Pale 

Ale,’’ TTB will not adopt the comment 

on this issue, but will instead consider 

it as a suggestion for future action. 

9. Subpart L—Recordkeeping and 

Substantiation Requirements 

Proposed Subpart L of parts 4, 5, and 

7 provided rules for recordkeeping and 

substantiation requirements for alcohol 

beverages. 

a. Recordkeeping Requirements and 

Retention Period 

Current regulations require bottlers 

holding an original or duplicate original 

of a certificate of label approval (COLA) 

or a certificate of exemption to exhibit 

such certificates, upon demand, to a 

duly authorized representative of the 

United States Government (see 27 CFR 

4.51, 5.55, and 7.42). Current 

regulations also require importers to 

provide a copy of the applicable COLA 

upon the request of the appropriate TTB 

officer or a customs officer (see 27 CFR 

4.40, 5.51, and 7.31). However, these 

regulations do not state how long 

industry members should retain their 

COLA. Furthermore, since the current 

regulations were originally drafted, TTB 

has implemented the electronic filing of 

applications for label approval. Now, 

applicants electronically submit over 98 

percent of new applications for label 

approval, and TTB electronically 

processes the remainder. Industry 

members have asked for clarification as 

to whether they have to retain paper 

copies of certificates that TTB 

electronically processed. Finally, 

because industry members may make 

certain specified revisions to approved 

labels without obtaining a new COLA, it 

is important that industry members 

keep track of which label approval they 

are using when they make such 

revisions. 

Accordingly, proposed §§ 4.211, 

5.211, and 7.211 provided that, upon 

request by the appropriate TTB officer, 

bottlers and importers must provide 

evidence of label approval for a label 

that is used on an alcohol beverage 

container and that is subject to the 

COLA requirements of the applicable 

part. The proposed regulations stated 

that bottlers and importers could satisfy 

the requirement by providing original 

certificates, photocopies, or electronic 


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copies of COLAs, or records showing 

the TTB identification number assigned 

to the approved COLA. Where labels on 

containers reflect revisions to the 

approved label that have been made in 

compliance with allowable revisions 

authorized to be made on the COLA 

form or otherwise authorized by TTB, 

the bottler or importer must be able to 

identify the COLA covering the product, 

upon request by the appropriate TTB 

officer. Bottlers and importers must be 

able to provide this information for a 

period of 5 years from the date the 

products covered by the COLAs were 

removed from the bottler’s premises or 

from customs custody, as applicable. 

TTB proposed 5 years as a reasonable 

period for regulated industry members 

to retain records because this period 

covers both the civil and criminal 

statute of limitations for violations of 

the FAA Act. TTB noted that the 

proposed rule would not require 

industry members to retain paper copies 

of each certificate. They should simply 

be able to track a particular removal to 

a particular certificate, and they may 

rely on electronic copies of certificates, 

including copies contained in the TTB 

Public COLA Registry. 

DISCUS expressed support for the 

recordkeeping requirement provisions, 

but raised a separate issue regarding 

how long TTB kept records of approved 

COLAs and formulas, suggesting that 

TTB should retain them in perpetuity. 

WineAmerica expressed support for the 

inclusion of a recordkeeping 

requirement in the regulations but asked 

that if such a form is not physically 

locatable, TTB should not penalize the 

producer, ‘‘as virtually all TTB related 

documents can be accessed via online 

sources.’’ NABI recommended that there 

be no mandatory retention period for 

COLAs available on COLAs Online, or 

in the alternative, stated that the 

retention period should be 3 years with 

a2-year optional extension. NABI stated 

that retention of certificates for every 

shipment imposed an undue burden on 

importers that a shorter retention period 

would be lessen, while the Williams 

Group believed 5 years was a reasonable 

record retention period for 

substantiating documentation. Wine 

Institute stated that maintaining the 

records required under §§ 4.212 and 

5.212 for 5 years would create a 

significant recordkeeping and, therefore, 

financial burden on smaller wineries. 

Wine Institute recommended a3-year 

retention period, which was in line with 

other TTB record retention requirements 

and the period reviewed by TTB during 

audits. 

Beverly Brewery Consultants 

suggested removing as redundant from 

§ 7.211(b) the words ‘‘if the product is 

required to be covered by a COLA,’’ 

because the other text in the paragraph 

already establishes that the products 

and label revisions would be covered by 

a COLA. Beverly Brewery Consultants 

also recommend removing from 

§ 7.211(c) a reference to § 7.26, which 

does not appear in the proposed 

regulations. 

The New York Farm Bureau 

commented as follows: 

Beverage producers must provide proof of 

COLA approval at TTB’s request. NYFB 

supports the idea that each producer keeps 

their own records of TTB approved forms, 

but if such form is not physically able to be 

located, the TTB does not penalize the 

producer, as virtually all TTB related 

documents can be accessed via online 

sources. 

TTB Response 

After reviewing the comments, TTB 

believes that the proposed 

recordkeeping provisions caused some 

confusion; therefore, the final rule does 

not adopt §§ 5.211 and 7.211 as 

proposed. Instead, TTB is finalizing the 

provision in current regulations that 

imposes a 5-year record retention period 

for certificates of age and origin for 

imported distilled spirits. These 

requirements are finalized in new 

§ 5.30. 

TTB is also finalizing the provision in 

the current regulations that requires 

certificate holders to produce COLAs 

upon demand from an appropriate TTB 

official. 

TTB notes the proposed rule did not 

require industry members to retain 

paper copies of each certificate. Rather 

they may rely on electronic copies of 

certificates, including copies contained 

in the TTB Public COLA Registry. TTB 

is adopting final regulations that reflect 

the use of modern, online systems as it 

will no longer require certificate holders 

to provide original certificates in 

response to such requests. Instead of 

consolidating these requirements into a 

recordkeeping subpart, TTB will simply 

retain the requirements in the 

appropriate sections of the regulations 

in new §§ 5.21(c), 5.23, 5.24(d), 7.21, 

and 7.24. 

The DISCUS comment about TTB’s 

own schedule for retaining records in its 

online systems is beyond the scope of 

this rulemaking, and TTB will consider 

it as a request for further action. Because 

TTB is not adopting the proposed 

regulations in this final rule, TTB is not 

addressing editorial comments from 

Beverly Brewery Consultants. 

b. Substantiation Requirements 

Proposed §§ 4.212, 5.212, and 7.212 

set forth specific substantiation 

requirements, which are new to the 

regulations, but which reflect TTB’s 

current policies as to the level of 

evidence that industry members are 

expected to have to support labeling 

claims. The proposed regulations 

provided that all claims, whether 

implicit or explicit, must have a 

reasonable basis in fact. Claims that 

contain express or implied statements 

regarding the amount of support for the 

claim (e.g., ‘‘tests provide’’ or ‘‘studies 

show’’) must have the claimed level of 

substantiation. 

Furthermore, the proposed 

regulations provided for the first time 

that any labeling claim that does not 

have a reasonable basis in fact, or 

cannot be adequately substantiated 

upon the request of the appropriate TTB 

officer, would be considered 

misleading. The proposed regulations in 

subpart H similarly included the same 

requirement. TTB proposed these 

revisions to the regulations to clarify 

that industry members are responsible 

for ensuring that all labeling and 

advertising claims have adequate 

substantiation. 

NABI raised due process concerns 

and stated that proposed §§ 4.212, 

5.212, and 7.212 must be clarified and 

narrowed to inform industry members 

of their obligations. Specifically, NABI 

commented that the provisions allowing 

TTB to request substantiation for any 

claim, implicit or explicit, did not 

adequately inform industry members of 

their obligations, and would require 

importers to maintain an indeterminate 

amount of information for every product 

they import. 

Wine Origins Alliance (WOA) 

expressed support for the proposed 

section and noted that the term ‘‘claim’’ 

was not defined in existing or proposed 

regulations, and expected that it would 

have the same broad meaning used by 

the Federal Trade Commission and 

Lanham Act jurisprudence, i.e., text 

‘‘that states or implies a particular fact.’’ 

WOA stated that under current TTB 

regulations, there is no specific 

obligation for an industry member to 

substantiate a claim on labeling, and 

therefore ‘‘a claim could be based on 

mere supposition or speculation.’’ 

According to WOA, it is currently TTB’s 

burden to prove that an unsubstantiated 

claim is false or misleading, whereas 

under the proposal, TTB could request 

substantiation for any claim and take 

enforcement action if it found the 

support inadequate. With this 

understanding, WOA supported the 

proposed requirements to the extent 

they would cause industry members to 

be more conservative in deciding which 

claims to put on labels, and thus 


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‘‘reduce the chances of claims that 

falsely or misleadingly suggest a 

connection to one of our member 

regions.’’ 

Oregon Winegrowers Association and 

Willamette Valley Wineries Association 

supported proposed § 4.212 for similar 

reasons, believing it would help avoid 

consumer confusion by leading to fewer 

false or misleading labeling claims. The 

Williams Group supported requiring 

substantiation and a reasonable basis in 

fact for all labeling claims. 

Wine Institute recommended 

removing § 4.122(b)(2) as duplicative of 

§ 4.212(b). Proposed 4.122 states TTB’s 

general prohibition of misleading 

statements or representations on wine 

labels, containers, or packaging, and 

references the substantiation 

requirement in § 4.212(b). 

DISCUS opposed § 5.212 because 

substantiation requests by TTB may 

delay label approvals. According to 

DISCUS, TTB faces a significant and 

increasing label review burden and 

lacks the capacity and expertise to 

determine the sufficiency of scientific or 

other substantiation of claims on 

distilled spirits labels. DISCUS also 

expressed concern that subjective 

rejections of labels by label specialists 

could impede product launches or lead 

to other commercial impacts. The 

DISCUS comment also stated that the 

proposal may ‘‘affect or delay historical 

labels to the detriment of industry 

members without commensurate benefit 

to TTB.’’ 

ADSA similarly believed that TTB 

lacked expertise to police labeling 

substantiation. ADSA expressed 

concern that TTB personnel would 

allege substantiation failures that would 

result in either expensive legal 

proceedings or offers in compromise to 

resolve the allegations. ADSA stated 

that its member companies already must 

substantiate labeling claims to avoid 

potential civil and governmental 

liability, including actions by 

competitors, consumers, State attorneys 

general, and the Federal Trade 

Commission, so additional requirements 

from TTB were unnecessary. 

Beer Institute believed the phrase 

‘‘adequately substantiated,’’ the 

standard by which TTB official would 

determine if a claim was misleading 

under proposed § 7.212, was too vague 

and required clarification. Beverly 

Brewing Consultants opposed the 

proposed regulation at § 7.212 because it 

did not distinguish between potentially 

false and misleading claims and 

generally accepted advertising puffery, 

such as ‘‘Vermont’s Favorite Beer’’ or 

‘‘Great Tasting Beer.’’ Beverly Brewing 

Consultants stated that the proposed 

regulation did not have a basis in the 

current regulations or past practice or 

usage. 

TTB Response 

After careful review of the comments, 

TTB has concluded that the proposed 

language caused confusion among 

industry members. TTB did not intend 

the proposed regulations to slow down 

the label review process by requiring 

COLA applicants to substantiate all 

claims prior to label approval, but some 

commenters incorrectly interpreted 

them as such. Accordingly, TTB is not 

adopting the proposed regulations on 

substantiation of claims. TTB stresses 

that it continues to expect certificate 

holders to be able to provide 

substantiation of both implicit and 

explicit labeling claims upon request. 

It is worth noting that while TTB has 

not issued regulations on ‘‘puffery,’’ 

TTB generally follows the FTC’s policy 

under which the agency does not expect 

‘‘puffery,’’ in the form of statements of 

opinion or hyperbolic claims regarding 

the quality of the product, to be 

substantiated. See ‘‘FTC Policy 

Statement on Deception,’’ dated October 

14, 1983 (appended to Cliffdale Assoc., 

Inc., 103 F.T.C. 110, 185 (1984), which 

states, ‘‘The Commission generally will 

not pursue cases involving obviously 

exaggerated or puffing representations, 

i.e., those that the ordinary consumers 

do not take seriously’’). See also Pfizer, 

Inc, 81 F.T.C. 23, 64 (1972) (‘‘[t]he term 

‘‘puffing’’ refers generally to an 

expression of opinion not made as a 

representation of fact’’). 

10. Subpart M—Penalties and 

Compromise 

a. Criminal Penalties 

Consistent with statutory provisions 

of 27 U.S.C. 205(e), proposed §§ 4.221, 

5.221 and 7.221 state that a violation of 

the labeling provisions is punishable as 

a misdemeanor and refer readers to 27 

U.S.C. 207 for the statutory provisions 

relating to criminal penalties, consent 

decrees, and injunctions. 

DISCUS, Willamette Valley Wineries 

Association (WVWA), Oregon 

Winegrower’s Association (OWA) and 

the New York Farm Bureau expressed 

support for this proposal. WVWA and 

OWA also requested an amendment to 

the proposed penalty regulations, 

providing that TTB would refer 

permittees who have repeated or 

egregious labeling violations for further 

investigation. 

TTB Response 

The proposed regulatory language 

simply refers readers to the statutory 

provisions about criminal penalties, as 

it is not appropriate to codify the 

suggested enforcement policies in the 

regulations. Accordingly, TTB is 

finalizing §§ 5.221 and 7.221 as 

proposed. 

b. Conditions of Basic Permits 

Proposed §§ 4.222, 5.222, and 7.222 

provide that basic permits are 

conditioned on compliance with the 

provisions of 27 U.S.C. 205, including 

the labeling provisions of parts 4, 5 and 

7. The proposed regulations state that a 

willful violation of the conditions of a 

basic permit provides grounds for the 

revocation or suspension of the permit, 

as applicable, as set forth in 27 CFR part 

1. 

DISCUS, Willamette Valley Wineries 

Association, and the Oregon 

Winegrower’s Association expressed 

support for the regulations as proposed. 

Beverly Brewery Consultants, however, 

requested that TTB delete § 7.222 

because part 7 ‘‘does not describe or 

regulate FAA Basic Permits.’’ Similarly, 

the National Beer Wholesalers 

Association questioned whether TTB 

was proposing to create such a permit 

requirement for brewers. 

TTB Response 

Brewers are not required to obtain a 

basic permit under the FAA Act. 

Instead, the Internal Revenue Code at 26 

U.S.C. 5401 requires brewers to file a 

notice of intent to operate a brewery. 

Under this authority, TTB requires 

brewery applicants to submit TTB Form 

5130.10, the Brewer’s Notice, which 

collects information similar to that 

collected on a permit application and, 

when approved by TTB, is a brewer’s 

authorization to operate. The 

requirements for filing and a 

maintaining a brewer’s notice are 

located at 27 CFR part 25, subpart G. 

While brewers are not required to 

obtain a permit, importers and 

wholesalers of malt beverages are 

subject to this requirement of the FAA 

Act. See 27 U.S.C. 203–204; 27 CFR 1.21 

and 1.23. Because the FAA Act provides 

the authority for part 7 and sets forth the 

basic permit requirements for importers 

and wholesalers of malt beverages, TTB 

proposed, similar to the parallel 

provisions for wine and distilled spirits, 

to provide a reference to the basic 

permit requirement in part 7. Section 

7.222 does not imply that brewers must 

obtain a basic permit, but simply states 

that possession of a basic permit is 

conditioned upon compliance with 27 

U.S.C. 205. TTB is therefore finalizing 

§§ 5.222 and 7.222 as proposed. 


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c. Compromise 

Proposed §§ 4.223, 5.223, and 7.223 

set forth TTB’s authority to compromise 

liability for a violation of 27 U.S.C. 205 

upon payment of a sum not in excess of 

$500 for each offense. The appropriate 

TTB officer will collect this payment 

and deposit it into the Treasury as 

miscellaneous receipts. 

DISCUS, Willamette Valley Wineries 

Association, and the Oregon 

Winegrower’s Association expressed 

support for the regulations as proposed. 

TTB Response 

TTB is finalizing §§ 5.223 and 7.223 

as proposed. 

B. Amendments Specific to 27 CFR Part 

5 (Distilled Spirits) 

In addition to the changes discussed 

in section II.A. of this document that 

apply to more than one commodity, 

TTB proposed editorial and substantive 

changes specific to the distilled spirits 

labeling regulations in part 5. This 

section will not repeat the changes 

already discussed in section II.A. of this 

document, which relate to more than 

one commodity. Furthermore, the 

proposed changes regarding part 5 on 

which TTB received no comments, and 

that TTB has adopted without change in 

this final rule, will not be discussed in 

this section. The substantive changes 

that are unique to part 5, on which TTB 

received comments, are described 

below. They are organized by subpart. 

1. Subpart A—General Provisions 

In Notice No. 176, TTB proposed in 

§ 5.1 a list of definitions. These were 

largely consistent with current 

regulations but included some proposed 

revisions. TTB addressed some of the 

proposed amendments in T.D. TTB–158. 

As explained in that final rule, TTB 

adopted the proposed definition of 

‘‘distilled spirits’’ to codify its 

longstanding position that products 

containing less than 0.5 percent alcohol 

by volume are not regulated as 

‘‘distilled spirits’’ under the FAA Act. 

TTB also stated in that final rule that it 

had decided not to move forward with 

the proposed new definition of the term 

‘‘oak barrel.’’ TTB noted that in the 

absence of a regulatory definition for 

‘‘oak barrel’’ or ‘‘oak container,’’ it will 

be TTB’s policy that these terms include 

oak containers of varying shapes and 

sizes. However, T.D. TTB–158 did not 

address many of the other proposed 

amendments to the definitions. We 

address the comments on those 

proposed amendments here. 

Additionally TTB made minor clarifying 

edits in subpart A for consistency with 

statutory language and current 

requirements. 

Comments on Definitions in § 5.1 

TTB proposed to modify the 

definition of ‘‘age’’ to include the 

concept that the distilled spirits must 

have been stored in oak barrels ‘‘in such 

a manner that chemical changes take 

place as a result of direct contact with 

the wood.’’ TTB received several 

comments that objected to this standard 

on the grounds that it was subjective, 

vague, arbitrary, and/or unnecessary. 

In Notice No. 176, TTB proposed to 

add a definition of ‘‘American proof,’’ 

which cross references the definition of 

‘‘proof,’’ which is unchanged from the 

current regulations. TTB uses the term 

‘‘American proof’’ in some 

circumstances to clarify that the proof 

listed on a certificate should be 

calculated using the standards in the 

part 5 regulations, not under another 

country’s standards. TTB received two 

comments with regard to this proposed 

definition. One commenter stated that 

the term ‘‘proof’’ does not need a 

regulatory definition because it is well 

understood. The Distilled Spirits 

Council of the United States (DISCUS) 

commented in support of defining 

‘‘proof’’ but urged TTB to change the 

temperature at which alcohol content is 

measured from 60 degrees Fahrenheit to 

68 degrees Fahrenheit (20 degrees 

Celsius), stating that ‘‘[m]oving the U.S. 

to a 68 °F (20 °C) standard would allow 

U.S. manufacturers to calculate proof in 

a manner similar to the rest of world 

and reduce production burdens.’’ 

DISCUS also commented that it opposed 

the proposed definition of ‘‘American 

proof’’ because it is unnecessary and 

confusing. TTB also proposed to add a 

definition of ‘‘grain,’’ which would 

define the term to include cereal grains 

as well as the seeds of three 

pseudocereal grains: Amaranth, 

buckwheat, and quinoa. (A 

‘‘pseudocereal’’ is not a grass, but its 

seeds may be ground into flour and 

otherwise used as cereals). TTB has 

received a number of applications for 

label approval for products using these 

pseudocereals, and TTB also notes that 

the FDA has proposed draft guidance 

regarding ‘‘whole grain’’ claims that 

include amaranth, buckwheat, and 

quinoa as ‘‘cereal grains.’’ See 71 FR 

8597 (February 17, 2006). 

TTB received seven comments in 

support of allowing the use of 

pseudocereals as grains for the purposes 

of distilled spirits labeling. One distiller 

suggested that pseudocereals are 

different from traditional cereal grains, 

and if they are permitted to be used in 

the distillation of whisky, they should 

be specifically identified on the label. 

DISCUS suggested that TTB include the 

grains listed in the definition of grain 

set forth in the U.S. Department of 

Agriculture (USDA) regulations at 7 CFR 

810.101 (which includes barley, canola, 

corn, flaxseed, mixed grain, oats, rye, 

sorghum, soybeans, sunflower seed, 

triticale, and wheat) and that the TTB 

definition should also include other 

grains not listed in the USDA 

regulations, such as rice, millet, and 

heirloom grains. DISCUS supported the 

language regarding pseudocereals. 

The Kentucky Distillers Association 

(KDA) supported the inclusion of 

pseudocereals as grains but requested 

the inclusion of, and clarification of, the 

status of sorghum, proposing a 

distinction between sorghum grains vs. 

cane sorghum and sorghum stalks 

(which the commenter argued should 

not be allowed to be considered as 

grains for purposes of distilling 

whiskey). 

The American Craft Spirits 

Association (ACSA) supported the 

inclusion of the three pseudo cereals, 

but also requested the specific addition 

of millet and sorghum, and requested 

that TTB revise the definition to clearly 

provide that it did not exclude cereals 

or pseudocereals that were not 

specifically listed. ACSA also requested 

that TTB revise the definition of a 

‘‘distiller,’’ which is found in 27 CFR 

part 19. 

TTB Response 

After reviewing the comments on the 

proposed changes to the definition of 

‘‘age,’’ TTB is retaining the current 

definition in the regulations. The 

comments suggested that the reference 

to chemical changes was vague, and 

TTB did not mean to introduce a 

subjective element to the definition. 

TTB notes that it retains its current 

policy that storage in paraffin-lined oak 

barrels does not meet regulatory 

requirements for ‘‘aging’’ distilled 

spirits in oak barrels. Finally, as 

proposed in Notice No. 176, the 

definition of ‘‘age’’ in the final rule 

refers to ‘‘oak barrels’’ rather than ‘‘oak 

containers,’’ to avoid confusion with the 

new definition of ‘‘container’’ in the 

final rule, which includes cans, bottles, 

and other closed receptacles that are for 

use in the sale of distilled spirits at 

retail. As previously noted, in T.D. 

TTB–158, TTB explained that in the 

absence of a regulatory definition for 

‘‘oak barrel’’ or ‘‘oak container,’’ it will 

be TTB’s policy that these terms include 

oak containers of varying shapes and 

sizes. 

TTB is finalizing the proposed 

definition of ‘‘American proof,’’ because 


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in certain contexts, the use of this term 

makes it clear that the proof should be 

measured under American standards, 

which (as the DISCUS comment noted) 

differ from those of several other 

countries. TTB also notes that the 

measurement of proof at 60 degrees 

Fahrenheit in the current and proposed 

definitions of ‘‘proof’’ and ‘‘proof 

gallon’’ in part 5 is consistent with the 

statutory definition of ‘‘proof spirits’’ in 

the IRC (see 26 U.S.C. 5002(a)(10)), and 

adopting a different standard in the 

FAA Act regulations would cause 

confusion. Accordingly, TTB is 

finalizing the proposed definitions of 

‘‘proof,’’ ‘‘proof gallon,’’ and ‘‘American 

proof.’’ 

TTB is also adopting the proposed 

definition of ‘‘grain.’’ TTB believes this 

definition will expand options for 

distillers by clarifying that they may use 

the seeds of amaranth, buckwheat, and 

quinoa to distill spirits (such as ‘‘grain 

spirits’’ or ‘‘whisky’’) that are required 

to be distilled from grain. TTB is not 

adopting the DISCUS suggestion to 

specifically list each type of cereal grain 

in the definition because such 

specificity is unnecessary. The 

definition includes all cereal grains; as 

such, TTB does not need to specifically 

list those grains. Furthermore, TTB sees 

no reason to implement specific labeling 

disclosure requirements for the seeds of 

the pseudocereals amaranth, buckwheat, 

and quinoa, beyond the labeling 

requirements that currently apply to 

grains. For example, if a commodity 

statement is required for a spirit 

distilled from buckwheat, the statement 

could be worded as either ‘‘Distilled 

from Grain’’ or ‘‘Distilled from 

Buckwheat.’’ This maintains labeling 

flexibility for the bottler or importer. 

With regard to ACSA’s suggestion that 

the regulation be revised to provide that 

all pseudocereals are included within 

the definition of grain, TTB currently 

has only addressed the status of the 

three pseudocereals that were listed in 

the proposed regulation (amaranth, 

buckwheat, and quinoa). The 

commenters did not identify any 

specific pseudocereals that they wished 

to use in distilled spirits, other than the 

three identified in the proposed rule, 

and thus TTB sees no reason to address 

this issue in the current rulemaking. 

Similarly, the proposed definition of 

‘‘grain’’ did not address the issue of 

whether stalks and cane from certain 

agricultural products (such as sorghum) 

qualify as grains. Thus, the KDA 

comment proposing that the regulations 

exclude cane sorghum and sorghum 

stalks is outside the scope of this 

proposal. TTB will treat this comment 

as a suggestion for future rulemaking. 

TTB also notes that the definition 

adopted in this final rule in no way 

changes its current policy, which is that 

sorghum and corn syrups are not grains. 

The ACSA comment on amending the 

definition of ‘‘distiller’’ in 27 CFR part 

19 is outside the scope of this 

rulemaking document, which is not 

amending the part 19 regulations. 

Finally, TTB is making a technical 

amendment to the definition of 

‘‘distilled spirits.’’ As amended by T.D. 

TTB–158, the definition listed the 

maximum alcohol content of a distilled 

spirit containing wine as ‘‘48 degrees of 

proof’’ and the minimum alcohol 

content for any distilled spirits as ‘‘0.5 

percent alcohol by volume.’’ For clarity 

and consistency, this final rule amends 

the definition to express both of these 

values in degrees of proof, with a 

parenthetical reference to the equivalent 

percentage of alcohol by volume. As 

amended, the two sentences in question 

state that ‘‘[t]he term ‘distilled spirits’ 

does not include mixtures containing 

wine, bottled at 48 degrees of proof (24 

percent alcohol by volume) or less, if 

the mixture contains more than 50 

percent wine on a proof gallon basis. 

The term ‘distilled spirits’ also does not 

include products containing less than 

one degree of proof (0.5 percent alcohol 

by volume).’’ 

Subpart E—Mandatory Label 

Information 

a. Single Field of Vision Labeling 

In Notice No. 176, TTB proposed to 

clarify where mandatory information 

must appear on a container by replacing 

the ‘‘brand label’’ concept with a 

requirement that three elements of 

mandatory information (the brand 

name; the class, type, or other 

designation; and the alcohol content) 

must appear within the same field of 

vision. TTB intended the proposed 

amendments to increase flexibility for 

placing such information on a distilled 

spirits container. 

Previously, the term ‘‘brand label’’ 

was defined in current § 5.11 as the 

principal display panel that is most 

likely to be displayed, presented, 

shown, or examined under normal retail 

display conditions. Further, the 

definition stated that ‘‘[t]he principal 

display panel appearing on a cylindrical 

surface is that 40 percent of the 

circumference which is most likely to be 

displayed, presented, shown, or 

examined under normal and customary 

conditions of display for retail sale.’’ 

TTB proposed, in proposed § 5.63(a), 

to allow this mandatory information to 

appear anywhere on the labels, as long 

as it is within the same field of vision, 

which means a single side of a container 

(which for a cylindrical container is 40 

percent of the circumference), where all 

pieces of information can be viewed 

simultaneously without the need to turn 

the container. TTB explained that 

requiring that this information appear in 

the same field of vision, rather than on 

the display panel ‘‘most likely to be 

displayed, presented, shown, or 

examined’’ at retail, is a more objective 

and understandable standard, 

particularly as applied to cylindrical 

bottles. 

TTB received five comments related 

to this proposal. A distiller and the 

American Craft Spirits Association each 

supported the change to a ‘‘single field 

of vision’’ concept. Another distiller 

commented in favor of allowing the 

alcohol content statement to appear on 

either the front label or the back label. 

Diageo commented in favor of allowing 

all information required by TTB 

regulations to appear on a single label, 

stating that ‘‘if TTB were to permit all 

mandatory information to appear on a 

single label, U.S. consumers almost 

certainly would quickly become 

accustomed to the new label and shop 

accordingly.’’ DISCUS supported the 

increased flexibility that the proposal 

would allow, bringing distilled spirits 

more in line with current requirements 

for wine. However, DISCUS also 

recommended that TTB liberalize 

placement rules further, allowing 

mandatory information to appear 

anywhere on distilled spirits labels. 

TTB Response 

In T.D. TTB–158, TTB liberalized the 

placement rules as proposed by 

allowing the brand name, class and type 

designation, and alcohol content to 

appear anywhere on the container as 

long as those three pieces of information 

are in the same field of vision. TTB did 

not adopt the DISCUS comment to 

eliminate all placement standards for 

mandatory information, based upon 

TTB’s position that it is important to 

keep these three closely-related 

elements of information together on the 

label since they express vital, related 

information that, taken together, 

conveys important facts to consumers 

about the identity of the product. With 

regard to the comment from Diageo, 

TTB notes that under the final rule, 

industry members may, if they wish, 

include additional optional or 

mandatory statements on the same label 

as the three pieces of information that 

are required to appear in the same field 

of vision. 

In this final rule, TTB is finalizing its 

regulation for mandatory information as 

proposed in Notice No. 176, which 


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maintains the substance of the rule as 

finalized in T.D. TTB–158, but also 

eliminates the ‘‘brand label’’ concept 

from the regulations in part 5. As 

finalized, § 5.63 does not include the 

term ‘‘brand label,’’ and thus the 

definition of the term is also removed 

from the regulations. This amendment is 

a liberalizing change that will not 

require any changes to labels, but will 

allow further flexibility in the 

placement of labeling information on 

distilled spirits containers. TTB notes 

that it may take some time to make 

conforming changes to the COLAs 

Online system to remove references to a 

‘‘brand label,’’ but, in the interim, COLA 

applicants may simply designate in 

COLAs Online the label(s) bearing the 

brand name, class and type designation, 

and alcohol content within a single field 

of vision as the ‘‘brand label.’’ 

b. Alcohol Content Statement—Proof 

In Notice No. 176, TTB proposed to 

clarify the existing requirement that, if 

the alcohol content is stated as degrees 

of proof, that statement must appear in 

direct conjunction with the mandatory 

alcohol content statement. Proposed 

§ 5.65 provided that the statement of 

proof must appear immediately adjacent 

to the mandatory alcohol content 

statement. 

The proposed rule kept the current 

requirement that the mandatory alcohol 

content statement must be stated on the 

label as a percentage of alcohol by 

volume, and provided that a proof 

statement may, but need not, appear on 

the label. In ATF Ruling 88–1, TTB’s 

predecessor agency clarified that an 

optional proof statement must appear in 

direct conjunction with the mandatory 

statement only once on the label or in 

an advertisement, specifically, in the 

place where the alcohol by volume 

statement is serving as the mandatory 

alcohol content statement. Accordingly, 

the proposed rule clarified that 

additional statements of proof need not 

be accompanied by the alcohol by 

volume statement. 

TTB received one comment on this 

issue, from a distiller (SanTan) arguing 

that there was no need for an optional 

statement of proof to be in direct 

conjunction with the required statement 

of alcohol content as a percentage of 

alcohol by volume. 

TTB Response 

It is TTB’s view that, if an optional 

proof statement appears on the label, it 

should be in the same field of vision as 

the required alcohol content statement 

to avoid confusing consumers. The 

proof of a distilled spirit is defined as 

being twice the ethyl alcohol content as 

a percentage of alcohol by volume, at 60 

degrees Fahrenheit. Consumers who are 

used to seeing the alcohol content 

labeled as a percentage of alcohol by 

volume, however, may be confused if 

the only alcohol content statement on 

the label is, for example, ‘‘80 proof.’’ In 

contrast, if the ‘‘80 proof’’ statement 

appears in the same field of vision as 

the mandatory alcohol content 

statement (‘‘40 percent alcohol by 

volume’’), consumers will understand 

the relationship between proof and 

alcohol content as a percentage of 

alcohol by volume. 

Accordingly, as finalized by this 

document, § 5.65 provides that, if a 

single optional proof statement appears 

on the label, it must be in the same field 

of vision as the required alcohol content 

statement, expressed as a percentage of 

alcohol by volume. This change 

liberalizes the placement requirements 

in the current regulations, which 

provide that there may be no 

intervening material between the 

mandatory alcohol content statement 

and the optional proof statement. The 

final rule also provides that additional 

statements of proof may appear on the 

label in different locations, without an 

accompanying alcohol by volume 

statement. The final rule adopts the 

proposal to allow other truthful, 

accurate, and specific factual 

representations of alcohol content, such 

as alcohol by weight, as long as they 

appear together with, and as part of, the 

statement of alcohol content as a 

percentage of alcohol by volume; 

however, it removes, as unnecessary, 

language clarifying that the mandatory 

statement may not be expressed as a 

range or by maximums or minimums. 

As discussed later in this document, 

similar language has also been removed 

from the malt beverage regulations at 

§ 7.65. 

c. Terms Used in Name and Address 

Statement 

In Notice No. 176, TTB explained that 

the current regulations in 27 CFR 5.36 

allow for various statements as part of 

the name and address statement, and 

limit the use of certain phrases, 

depending upon the party seeking to use 

those phrases. In general, a ‘‘bottled by’’ 

statement must appear on the label of 

domestically bottled distilled spirits, 

followed by the name and address of the 

bottler. In lieu of this statement, as 

explained elsewhere in this document, 

the phrase ‘‘distilled by’’ may appear on 

the label to describe the original distiller 

of the distilled spirits, where the spirits 

are bottled by or for that distiller. 

Current § 5.36(a)(4) provides that certain 

other terms may be used to describe the 

‘‘rectifier’’ of the distilled spirits—these 

terms are ‘‘blended by,’’ ‘‘made by,’’ 

‘‘prepared by,’’ ‘‘manufactured by,’’ and 

‘‘produced by.’’ The current regulations 

do not define these terms. Because there 

is no longer a rectification tax on 

distilled spirits, and thus these terms 

have lost their significance under the 

IRC, some industry members and 

consumers are confused as to when the 

use of those terms is appropriate. 

Accordingly, proposed § 5.66(b)(2) 

used the term ‘‘processor’’ of distilled 

spirits, rather than ‘‘rectifier’’ to be 

consistent with current IRC use. The 

proposed regulation also clarified that 

the term ‘‘produced by,’’ when applied 

to distilled spirits, does not refer to the 

original distillation of the spirits, but 

instead indicates a processing operation 

(formerly known as rectification) that 

involves a change in the class or type of 

the product through the addition of 

flavors or some other processing 

activity. TTB solicited comments on 

whether the proposed definitions of 

these terms are consistent with trade 

and consumer understanding. 

TTB received several comments on 

this issue that raised questions as to 

whether the terms used in the 

regulations reflected current consumer 

understanding. 

TTB Response 

TTB is finalizing the proposed 

regulation, which accurately reflects 

current TTB policy as to the meaning of 

the term ‘‘production,’’ but does not 

define the other terms that describe 

processing operations (formerly known 

as rectification operations). TTB 

believes that several commenters raised 

valid points as to consumer 

understanding of these terms. The 

proposed rule, however, did not solicit 

specific comments on precise 

definitions for terms other than 

‘‘produced by,’’ so incorporating new 

definitions for these terms would be 

outside the scope of the rulemaking. 

Accordingly, TTB will treat these 

comments as suggestions for future 

rulemaking. 

d. State of Distillation 

TTB noted in Notice No. 176 that it 

has received several inquiries about its 

existing regulations on labeling certain 

whisky products with the name of the 

State where distillation occurred. 

Current § 5.36(d) requires the State of 

distillation to be listed on the label if it 

is not included in the mandatory name 

and address statement. However, 

because the name and address statement 

may be satisfied with a bottling 

statement, there is no way to know, 

simply by reviewing a proposed label, if 


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distillation actually occurred in the 

same State as the bottling location. For 

example, a whisky label may indicate 

that the product was bottled in 

Kentucky, even if it was distilled in 

another State and transferred in bond to 

Kentucky for bottling. 

Accordingly, TTB proposed, in 

§ 5.66(f), an updated regulation that 

would provide that, where required, the 

State of original distillation for certain 

whisky products must be shown on the 

label in at least one of the following 

ways: 

• By including a ‘‘distilled by’’ (or 

‘‘distilled and bottled by’’ or any other 

phrase including the word ‘‘distilled’’) 

statement as part of the mandatory name 

and address statement, followed by a 

single location. This means that a 

principal place of business or a list with 

multiple locations would not suffice; 

• By including the name of the State 

in which original distillation occurred 

immediately adjacent to the class or 

type designation (such as ‘‘Kentucky 

Bourbon whisky’’), as long as 

distillation and any required aging 

occurred in that State; or 

• By including a separate statement, 

such as ‘‘Distilled in [name of State].’’ 

TTB received 47 comments on the 

proposal to clarify the State of 

distillation. Of those, 45 comments 

supported the proposal to require the 

State of distillation to be indicated on 

the label in one of the three ways 

proposed. For example, the Texas 

Whiskey Association stated that ‘‘[w]e 

applaud the clarity in new proposals on 

listing the State of Distillation on a label 

where it is not the same as bottling or 

business address. We strongly support 

that distillation and aging must take 

place in the actual state where the 

whiskey is distilled for a whiskey to 

carry a state designation.’’ The 

American Single Malt Whiskey 

Commission stated that ‘‘[w]e are in 

favor of the current propos[ed] § 5.66(f) 

requiring that the state of distillation for 

certain whisky products be shown on 

the label in at least one of the three ways 

outlined.’’ Heaven Hill Brands 

commented that: ‘‘[w]e strongly support 

distillation and aging being labeled per 

the actual state where this occurs so that 

consumers know exactly what product 

they are buying, especially as it relates 

to Kentucky Bourbon Whisky.’’ 

Some commenters suggested that TTB 

impose tighter restrictions on State of 

distillation labeling. For example, the 

Texas Whiskey Association commented 

as follows: 

We strongly support that distillation and 

aging must take place in the actual State 

where the whiskey is distilled for a whiskey 

to carry a state designation. We would go 

further and request that it be mashed, 

fermented, distilled and aged in that State 

before it carries a State designation. We 

would further support that if a whiskey is 

distilled more than once, with distillation 

occurring in more than one state, that no 

State designation be permitted. 

TTB received two comments opposed 

to the proposal. The Confederated 

Tribes of the Chehalis Reservation 

explained that: 

Because tribes literally were barred from 

opening and operating distilleries until just 

recently, the Chehalis Tribe has had no 

ability to create and stockpile our own aging 

supply of products. We should be allowed to 

negotiate with older participants in the 

industry in creating and blending products 

without having to disclose confidential 

information about our sources, partners or 

partnerships * * *. At a minimum, the 

Chehalis Tribe and other tribes should be 

exempt from such requirements. 

DISCUS, in its comment, urged TTB 

to eliminate the requirement to include 

a State of distillation on labels. DISCUS 

commented that State of distillation 

statements should be optional and 

subject to the relevant business 

circumstances of each supplier. 

TTB Response 

After carefully considering the 

comments, TTB has decided not to 

finalize the proposed changes to the 

State of distillation labeling 

requirement. While most of the 

comments from distillers supported the 

position that consumers should be 

provided with this information, DISCUS 

commented that TTB should eliminate 

the requirement altogether, allowing 

such statements as optional information 

on labels. This represents a new option 

that TTB did not air for comment in 

Notice No. 176. Because adoption of the 

amendment proposed in Notice No. 176 

could reasonably be expected to require 

some labeling changes by bottlers of 

certain types of whisky, TTB has 

determined that, before adopting any 

substantive changes to this longstanding 

requirement, it might be appropriate to 

air, for public comment, the relative 

merits of making the State of distillation 

labeling statement optional rather than 

mandatory. This would also allow TTB 

to solicit comments on the costs and 

burdens of the different options. 

Accordingly, TTB will treat the 

comments on this issue as suggestions 

for future rulemaking. 

Instead of mandating changes to 

labels, the final rule maintains the 

current requirements for labeling of the 

State of distillation on certain whisky 

products by continuing to allow the 

bottling statement to suffice where the 

whisky was in fact distilled in the State 

shown on the label, even though the 

label does not make any representation 

as to the place of distillation. However, 

the final rule further clarifies current 

requirements by revising the current 

language to provide that if the address 

shown in the ‘‘bottled by’’ statement 

includes the State in which distillation 

occurred, the requirement may be 

satisfied by including a ‘‘bottled by’’ 

statement as part of the mandatory name 

and address statement, followed by a 

single location. TTB believes this 

clarification will assist industry 

members in complying with the 

requirements, but it will not change the 

substance of the current labeling 

requirement. 

With regard to the Texas Whiskey 

Association comment about when a 

whiskey may use a State designation, 

this document finalizes the proposed 

language clarifying that the use of, for 

example, ‘‘Texas Rye Whisky’’ means 

that the product was both distilled and 

aged in Texas. With regard to any 

additional redistillations in a second 

State, it has been the longstanding 

position of TTB and its predecessors 

that the State where the original 

distillation occurred is the State of 

distillation for purposes of the labeling 

regulations. See Rev. Rul. 54–416, 1954– 

2 C.B. 470. TTB is adopting this position 

in the final rule. 

e. Coloring Materials 

In Notice No. 176, TTB proposed to 

maintain the substantive requirements 

for disclosure, on labels, of the use of 

certain coloring materials used in the 

production of distilled spirits, including 

the provision (found in current 

§ 5.39(b)(3)) that the use of caramel need 

not be indicated on labels of brandy, 

rum, Tequila, or whisky other than 

straight whisky. Pursuant to current 

§ 5.23, caramel may be used in distilled 

spirits products if this use is 

customarily employed in them in 

accordance with established trade 

usage, and if the caramel is used at not 

more than 2.5 percent by volume of the 

finished product. 

TTB received four comments related 

to coloring materials. Two distillers 

asked for more stringent labeling rules 

for the use of caramel in the categories 

of distilled spirits products that are 

currently exempted from the caramel 

disclosure requirements. Of these, 

Sazerac commented that ‘‘[i]n order to 

respond to reasonable consumer 

expectations for consistency across 

products, Sazerac asks that TTB require 

consistent disclosure of caramel color.’’ 

Privateer Rum commented in favor of 

the proposal and suggested that the 


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regulation should require disclosure of 

the use of caramel in rum. 

ACSA commented that it was ‘‘in 

favor and supportive of the language on 

coloring materials and feels strongly the 

provision should be applied equally to 

imported spirits.’’ The European Union 

(EU) asked for an explanation as to the 

general rule on disclosure of caramel on 

distilled spirits, and the basis for the 

exceptions. 

TTB Response 

After careful consideration, TTB is 

finalizing the coloring materials labeling 

regulation as proposed in § 5.72, which 

clarifies current regulations but does not 

impose additional labeling 

requirements. TTB did not propose any 

changes to the current requirements, 

and believes that the addition of new 

labeling disclosure requirements for 

coloring materials such as caramel is 

beyond the scope of this rulemaking. 

The exception to the caramel disclosure 

requirement for brandy, rum, Tequila, 

and whisky other than straight whisky 

is a longstanding policy of TTB and its 

predecessors. 

3. Subparts F, G, and H 

a. Barrel Proof and Similar Terms 

In Notice No. 176, TTB proposed in 

§ 5.87 to set forth definitions for the 

terms ‘‘barrel proof’’, ‘‘cask strength’’, 

‘‘original proof’’, ‘‘original barrel proof’’, 

‘‘original cask strength’’, and ‘‘entry 

proof’’ on distilled spirits labels. The 

proposed rule also added ‘‘cask 

strength’’ as a term that means the same 

as ‘‘barrel proof’’ and ‘‘original cask 

strength’’ as a term that means the same 

as ‘‘original barrel proof.’’ 

The proposed rule incorporated the 

holding, set forth in ATF Ruling 79–9, 

that the terms ‘‘original proof,’’ ‘‘original 

barrel proof,’’ and ‘‘entry proof,’’ when 

appearing on a distilled spirits product 

label, indicate that the proof of the 

spirits entered into the barrel and the 

proof of the bottled spirits are the same. 

The ruling further held that the term 

‘‘barrel proof’’ appearing on a distilled 

spirits label indicates that the bottling 

proof is not more than two degrees 

lower than the proof established at the 

time the spirits were gauged for tax 

determination. 

The proposed regulations updated the 

description of the term ‘‘barrel proof’’ to 

take into account changes in the 

operation of distilled spirits plants as a 

result of the Distilled Spirits Tax 

Revision Act of 1979. The reference to 

the time of tax determination is no 

longer the applicable standard under the 

current tax determination system. Since 

the term ‘‘barrel proof’’ is intended to 

indicate that the spirit is approximately 

the same proof as when it is dumped 

from the barrel, the proposed 

regulations state that the term may be 

used on a label when the alcohol 

content (proof) of distilled spirits when 

bottled is not more than two degrees of 

proof lower than the proof of the spirit 

when the spirit was dumped from the 

barrel. Proposed § 5.87 accordingly 

provided that the term ‘‘barrel proof’’ or 

‘‘cask strength’’ may be used to refer to 

distilled spirits that had been stored in 

wood barrels, and the proof when 

bottled is not more than two degrees 

lower than the proof of the spirits when 

the spirits are dumped from the barrels. 

TTB noted that it rarely sees such terms 

on distilled spirits labels and 

specifically sought comments on 

whether they still have relevance and 

provide meaningful information to the 

consumer and whether TTB should 

regulate their use on labels. 

TTB received several comments on 

this proposal. Some of the comments 

reflected disagreement on the two 

different concepts that TTB addressed 

in proposed § 5.87. Proposed § 5.87(a) 

defined terms that may be used on a 

label when the proof at which the 

product is bottled is within 2 degrees of 

the proof of the product when the spirits 

were dumped from the barrel into the 

bottling tank. Proposed § 5.87(b) defined 

terms that refer to the proof of the spirits 

when entered into the barrels for aging. 

DISCUS and the ACSA commented 

that all of the terms refer to proof at 

bottling, with the exception of ‘‘entry 

proof,’’ which it states is ‘‘clearly 

understood as the proof at which the 

spirit was entered into the barrel and 

would therefore be confusing to define 

in relation to final proof postmaturation, which can be very different 

than the entry proof into the barrel.’’ 

Therefore, ACSA recommended that 

‘‘entry proof’’ not be included in this list 

of definitions, and instead be allowed as 

an applicable descriptor of the proof of 

entry into the barrels regardless of 

bottling proof. 

On the other hand, DISCUS 

commented that ‘‘Original proof’’ and 

‘‘barrel proof’’ are two distinct and 

separate concepts, as proof can go up or 

down during aging. DISCUS suggested 

that the two degree variance for ‘‘cask 

strength’’ and ‘‘barrel proof’’ is too 

narrow, suggesting that at a minimum, 

‘‘the standard should be set at a 7 

percent differential and should be 

measured when the product is dumped 

from the barrel. Water is used as part of 

production, for example, to flush the 

production lines and other technical 

needs. This amount of water may differ 

based upon the length of the production 

line and other factors specific to each 

producer’s facility. Based upon these 

realties, TTB should amend this 

proposal to establish that ‘‘barrel proof’’ 

may be within 7 percent of proof at 

dump.’’ 

The Scotch Whisky Association 

commented that ‘‘original proof’’ is not 

a useful term for labeling. Spirits 

Canada commented in opposition to 

defining what they referred to as 

marketing terms. Two individual 

commenters also wrote in support of the 

proposed definitions. 

TTB Response 

After careful consideration of the 

comments, TTB is finalizing § 5.87 as 

proposed. TTB believes that it is useful 

to consumers to have uniform standards 

for these terms appearing on labels, and 

most of these terms have been subject to 

the definitions in ATF Ruling 79–9 for 

over 40 years. Many industry members 

rely on these labeling terms for their 

products. 

b. Terms Related to Scotland 

In Notice No. 176, TTB proposed 

rules that maintain and clarify standards 

for the use of terms related to Scotland 

on distilled spirits labels. Such rules 

currently appear only in the regulatory 

sections related to product standards of 

identity and class and type, at current 

§§ 5.22(k)(4) and 5.35, respectively. The 

proposed provision retained the current 

rule set forth at current § 5.22(k)(4), that 

the words ‘‘Scotch,’’ ‘‘Scots,’’ 

‘‘Highland,’’ or ‘‘Highlands’’ and similar 

words connoting, indicating, or 

commonly associated with Scotland 

may be used only on a product wholly 

produced in Scotland. It moves this rule 

to the provisions on restricted labeling 

practices in the new subpart F. 

However, regardless of where the 

finished products are produced, the 

regulations would not prohibit the term 

‘‘Scotch Whisky’’ from appearing on the 

label in the statement of composition for 

distilled spirits specialty products that 

use Scotch Whisky or in the statement 

of composition on the label of Flavored 

Scotch Whisky. (While the finished 

product may be produced anywhere, the 

Scotch Whisky component must 

continue to be made in Scotland under 

the rules of the United Kingdom.) In 

addition, proposed § 5.90(b) clarified (in 

accordance with current regulations as 

well as proposed § 5.127) that phrases 

related to government supervision may 

be allowed only if required or 

specifically authorized by the 

regulations of the United Kingdom. This 

supersedes Revenue Ruling 61–15, 

which applied that rule to specific 


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language on labels of Scotch whisky 

bottled in the United States. 

The Scotch Whisky Association 

commented in support of the existing 

prohibition. Several commenters 

commented that the terms ‘‘highlands’’ 

and ‘‘lowlands’’ should not be restricted 

to Scotch Whisky products, as other 

areas of the world have highlands and 

lowlands areas. The Irish Whiskey 

Association and the Ireland Department 

of Agriculture commented that TTB 

should impose new restrictions on 

terms related to Ireland. 

TTB Response 

After careful consideration, TTB is 

finalizing § 5.90, on terms related to 

Scotland, as proposed, with a minor 

editorial change. TTB believes that these 

longstanding restrictions ensure that 

consumers are fully informed about the 

meanings of the regulated terms. TTB 

will consider comments about allowing 

the use of the terms ‘‘highlands’’ and 

‘‘lowlands’’ in other contexts for 

potential future rulemaking. 

c. Pure 

In Notice No. 176, TTB proposed to 

maintain its longstanding restrictions on 

the use of the term ‘‘pure’’ on distilled 

spirits labels. The rule provides that the 

term ‘‘pure’’ may not be used unless it 

is a truthful representation about a 

particular ingredient, is part of the name 

of a permittee or retailer for whom the 

spirits are bottled, or is part of the name 

of the permittee who bottled the spirits. 

While TTB did not specifically 

request comments on this issue, TTB 

received six comments regarding 

‘‘pure.’’ Three commenters, Diageo, 

DISCUS, and the American Distilled 

Spirits Association (ADSA), urged TTB 

to eliminate the prohibition on the term 

‘‘pure.’’ Diageo stated that allowing the 

use of the term on wine and malt 

beverages but not distilled spirits is 

inconsistent. SanTan Spirits suggested 

that TTB’s definition of ‘‘pure’’ should 

include products that consist of 

distillate and water, such as, for 

example, ‘‘pure whisky.’’ St. George 

Spirits commented in support of the 

proposed regulation. ACSA commented 

that the term ‘‘pure’’ is vague and 

sought further clarification. 

TTB Response 

After careful consideration, TTB is 

finalizing the current regulations on the 

term ‘‘pure’’ as proposed in § 5.91. 

Thus, the final rule retains the 

longstanding restrictions on the use of 

the term ‘‘pure’’ on distilled spirits 

labels. The rule provides that the term 

‘‘pure’’ may not be used unless it is a 

truthful representation about a 

particular ingredient, is part of the name 

of a permittee or retailer for whom the 

spirits are bottled, or is part of the name 

of the permittee who bottled the spirits. 

This issue has been the subject of 

separate rulemaking, and TTB 

published an advance notice of 

proposed rulemaking (Notice No. 53, 

December 7, 2005, 70 FR 72731), 

soliciting comments on whether it or 

not it should revise the standard. TTB 

did not specifically solicit comments on 

this issue as part of the recodification, 

and it will consider the comments that 

it did receive as suggestions for future 

rulemaking. 

4. Subpart I 

In Notice No. 176, TTB set forth, in 

subpart I, the standards of identity for 

distilled spirits. The standards of 

identity are divided into classes and 

more specific types. TTB proposed 

certain revisions to the standards of 

identity, described in more detail below. 

In addition to comments on TTB’s 

proposed revisions, TTB received a 

number of suggestions for new 

standards of identity, both classes and 

types, that had not been proposed in 

Notice No. 176. Examples of standards 

of identity that commenters advocated 

for include standards for Straight 

Applejack, Juniper Processed Spirits 

(including Genever), Straight Rum, Rum 

Agricole, Queen’s Share Rum, Irish 

Cream Liqueur, and others. 

Additionally, TTB received comments 

supporting the creation of a type of 

whisky, American Single Malt Whisky. 

Because other commenters could not 

anticipate creation of new standards 

that were not initially proposed, TTB is 

not finalizing any of these suggested 

standards in this rulemaking. It will 

keep the comments for consideration for 

future rulemaking focused on the 

standards of identity for distilled spirits. 

a. The Standards of Identity in General 

In Notice No. 176, TTB stated that 

some distilled spirits products may 

conform to the standards of identity of 

more than one class. Consistent with 

longstanding policy, TTB proposed to 

clarify, in § 5.141(b)(3), that such a 

product may be designated with any 

class designation to which the product 

conforms. For example, a vodka with 

added natural orange flavor and sugar 

bottled at 45 percent alcohol by volume 

may meet the standard of identity for a 

flavored spirit or for a liqueur. 

Accordingly, the product may be 

designated as either ‘‘orange flavored 

vodka’’ or ‘‘orange liqueur’’ at the 

option of the bottler or importer. Under 

current policy, TTB would not allow a 

product to be designated on a single 

label as both ‘‘orange flavored vodka’’ 

and ‘‘orange liqueur,’’ because TTB 

views it as misleading for a label to bear 

two different class designations. TTB 

specifically sought comments on 

whether the TTB regulations should 

permit a distilled spirits label to bear 

more than one class designation if the 

product conforms to the standards of 

identity for more than one class. 

TTB received three comments related 

to this issue. All three commenters 

wrote that TTB should allow labels to 

bear only one designation. 

TTB Response 

TTB will finalize this regulation as 

proposed, in § 5.141(b)(3), to allow 

industry members the flexibility of 

designating their products with any 

single class designation to which the 

product conforms, but not to use 

multiple designations. It was not TTB’s 

intention to allow multiple designations 

on labels. A product that may meet the 

definition for two or more classes or 

types must still be designated with a 

single class or type. 

b. Neutral Spirits 

In Notice No. 176, TTB proposed to 

provide that the source material of the 

neutral spirits may be specifically 

included in the designation on the label 

of the product. Thus, the bottler would 

have the option of labeling a product as 

‘‘Apple Neutral Spirits’’ (in addition to 

‘‘neutral spirits distilled from apples’’ as 

the required commodity statement) or 

‘‘Grape Vodka,’’ (in addition to ‘‘vodka 

distilled from fruit’’ as the required 

commodity statement) as long as such 

statements accurately describe the 

source materials. 

TTB received four comments on this 

issue. Three commenters supported 

allowing the source material to provide 

better clarity to consumers and would 

allow for labeling flexibility. DISCUS 

commented that it opposes allowing the 

source material as part of the 

designation as it would affect current 

products that use terms such as ‘‘Grape 

Vodka’’ as the distinctive or fanciful 

name for a distilled spirits specialty 

product. 

TTB Response 

TTB agrees that allowing the source 

material as part of the designation for 

neutral spirits may cause confusion 

with distilled spirits specialty products 

that use similar statements as distinctive 

or fanciful names. As DISCUS pointed 

out, TTB has allowed terms such as 

‘‘grape vodka’’ as the distinctive or 

fanciful name for specialty products— 

such a product is different from a vodka 

distilled from grapes. Accordingly, TTB 


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will not move forward with finalizing 

the proposed rule. TTB notes, however, 

that industry members are not 

precluded from placing information 

about the source materials on the label. 

For example, a phrase such as ‘‘Distilled 

from grapes’’ or ‘‘Distilled from 

Washington apples’’ would be allowed 

on vodka labels. 

c. Whisky 

In Notice No. 167, TTB proposed to 

set forth an updated standard of identity 

for whisky. Among other things, TTB 

proposed clarifying that Bourbon 

Whisky may not contain coloring, 

flavoring, or blending materials. TTB 

also proposed to specifically note that 

‘‘whisky’’ may be spelled either 

‘‘whisky’’ or ‘‘whiskey,’’ which is 

longstanding policy. 

TTB received four comments 

supporting the clarification that 

bourbon whisky may not contain 

coloring, flavoring, or blending 

materials. Six commenters supported 

the clarification that whisky may be 

spelled ‘‘whisky’’ or ‘‘whiskey’’, while 

SanTan Spirits commented that whisky 

should only be spelled as ‘‘whiskey’’. 

In Notice No. 176, TTB also proposed 

to provide for a new type designation of 

‘‘white whisky or unaged whisky.’’ TTB 

has seen a marked increase in the 

number of products on the market that 

are distilled from grain but are unaged 

or that are aged for very short periods 

of time. Under current regulations, 

unaged products would not be eligible 

for a whisky designation (other than 

corn whisky) and would have to be 

labeled with a distinctive or fanciful 

name, along with a statement of 

composition. 

Accordingly, TTB proposed new 

standards of identity for products that 

are either unaged (so they are colorless) 

or aged and then filtered to remove 

color; these products would be 

designated as ‘‘unaged whisky’’ or 

‘‘white whisky,’’ respectively. This 

proposal represented a change in policy 

because, currently, all whiskies (except 

corn whisky) must be aged, although 

there is no minimum time requirement 

for such aging. TTB believes that, 

currently, some distillers may be using 

a barrel for a very short aging process 

solely for the purpose of meeting the 

requirement to age for a minimal time. 

Consequently, TTB proposed the new 

type designation of ‘‘white whisky or 

unaged whisky’’ and specifically 

requested comments on this new type 

and its standards. 

TTB received 22 comments on the 

proposal to add the new ‘‘white whisky 

or unaged whisky’’ type. Twelve 

commenters wrote in support of the 

proposal. For example, Stoutridge 

Distillery commented in support of the 

change, suggesting that ‘‘there are many 

craft distillers creating these products 

and ‘passing them through’ an oak 

container to meet the ‘letter of the law’. 

This change would acknowledge that 

this is a legitimate whisky type and 

encourage further development of the 

commercial category.’’ 

TTB also received 10 comments 

opposed to the creation of this new 

type. For example, Diageo objected to: 

the creation of a ‘‘white whiskey’’ or ‘‘unaged 

whiskey’’ categor[y] . . . Consumers expect 

whiskey to be aged. This is backed by 

hundreds of years of whiskey production 

domestically and internationally. Such 

products could be misleading by labeling as 

‘‘whiskey’’ spirits that are otherwise neutral 

or bear no whiskey characteristics unless 

artificially imparted. 

ADSA also opposed the new type, 

stating that its member companies have 

spent years building whisky brands 

based on aged liquids that are 

synonymous with quality. ADSA stated 

that the proposed category might cause 

consumer confusion. 

TTB Response 

After careful consideration, TTB is 

not finalizing the proposal to create a 

new type of ‘‘white whisky or unaged 

whisky’’. Both the current and amended 

standards for types of whisky 

adequately inform consumers of 

products that are aged for short periods 

of time and any whisky aged less than 

4 years must include an age statement. 

TTB agrees that adding unaged whiskies 

to the ‘‘whisky’’ class may cause 

consumer confusion. Such products 

may continue to be labeled as distilled 

spirits specialty products with a 

statement of composition. 

TTB is finalizing the proposals that 

whisky may be spelled as ‘‘whisky’’ or 

‘‘whiskey’’ and that bourbon whisky 

must not contain any coloring, 

flavoring, or blending materials. These 

amendments reflect current policy and 

were supported by commenters. While 

there was one comment that advocated 

the use of a single spelling of 

‘‘whiskey,’’ it has been longstanding 

policy to recognize either spelling, and 

TTB sees no basis for revising that 

policy and requiring changes to labels to 

enforce a single spelling for this term. 

d. Cordials and Liqueurs 

In Notice No. 167, TTB proposed to 

set out minor changes to the standards 

for cordials and liqueurs. Among other 

changes, TTB proposed to prohibit the 

terms ‘‘distilled,’’ ‘‘compound,’’ or 

‘‘straight’’ from appearing on labels for 

cordials and liqueurs, on the grounds 

that the terms were misleading on labels 

for cordials and liqueurs, which are by 

definition blended (rectified) 

compounds. The proposed rule thus 

incorporated into this section the 

following holding in Revenue Ruling 

61–71: 

In view of the fact that the term ‘straight,’ 

in relation to American types of whisky, can 

be employed on labels only if the product is 

a single distillate or a homogeneous mixture 

not subject to rectification tax, and as the 

term ‘straight,’ in every-day trade parlance, is 

regarded in much the same sense as 

‘unblended’ in relation to distilled spirits, in 

general, the use of the term ‘straight’ on 

labels on rectified compounds, known as 

‘cordials’ or ‘liqueurs,’ would be deceptive or 

misleading to the consumer with respect to 

the actual identity of the product thus 

labeled or advertised. 

Current regulations also provide that 

certain cordials or liqueurs may be 

designated with a name known to 

consumers as referring to a cordial or 

liqueur and therefore need not use the 

word ‘‘cordial’’ or ‘‘liqueur’’ as part of 

their designation. Thus, pursuant to 

TTB’s Beverage Alcohol Manual (TTB P 

5110.7), several cordials and liqueurs— 

specifically, Kummel, Ouzo, Anise, 

Anisette, Sambuca, Peppermint 

Schnapps, Triple Sec, Curac ̧ao, 

Goldwasser, and Cre`me de 

[predominant flavor]—currently may be 

designated by those names on the labels 

of those products. TTB proposed to 

codify this policy by adding these 

names as type designations under 

proposed § 5.150. 

TTB received several comments 

related to this proposal. The American 

Distilling Institute commented that if a 

producer ferments and distills the base 

spirit used in the creation of the liqueur, 

they should be able to state that fact on 

their label along with other relevant 

production functions. Sazerac pointed 

out that ‘‘Revenue Ruling 61–71, which 

TTB cites as the basis for this proposed 

change, only addresses the claim 

‘straight’ and does not address ‘distilled’ 

or ‘compound’ ’’ and suggested that TTB 

had not provided an adequate basis for 

providing that terms like ‘‘distilled’’ 

imply original distillation and are 

misleading when used on cordials or 

liqueurs. 

ACSA commented that it supports the 

proposed § 5.150 without further detail. 

TTB Response 

After considering the comments, TTB 

is finalizing § 5.150 with modifications. 

The final rule incorporates the holding 

of Rev. Rul. 61–71 with regard to the 

prohibition on the use of misleading 

claims that a cordial or liqueur is 

‘‘straight.’’ For the reasons set forth in 


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that ruling, a cordial or liqueur cannot 

be ‘‘straight.’’ TTB agrees with the 

comment that stated that the proposed 

regulation went further than Rev. Rul. 

61–71 but notes that the current 

regulations at 27 CFR 5.22(h)(6) provide 

that cordials and liqueurs ‘‘shall not be 

designated as ‘distilled’ or 

‘compound.’ ’’ However, TTB is not 

adopting the proposed amendment to 

prohibit the use of the term ‘‘distilled’’ 

or ‘‘compound’’ on cordial or liqueur 

labels. Additionally, TTB will consider 

for future rulemaking whether to 

expand the allowable sugars to other 

types of sweeteners. 

e. Flavored Spirits 

The TTB regulations currently list 

flavored brandy, flavored gin, flavored 

rum, flavored vodka, and flavored 

whisky as the class designations under 

Class 9. Currently, other types or classes 

of distilled spirits that are flavored must 

generally be labeled with a statement of 

composition in accordance with 27 CFR 

5.35(a). 

In Notice No. 176, TTB proposed to 

expand the current Class 9 by 

establishing a standard of identity for 

‘‘flavored spirits.’’ The current Class 9 

covers only five classes of distilled 

spirits (brandy, gin, rum, vodka and 

whisky) as ‘‘base spirits’’ to which 

flavoring materials may be added. As 

proposed, the base spirits for the new 

‘‘flavored spirits’’ class would include 

types within these classes (such as corn 

whisky), as well as other classes of base 

spirits covered by a standard of identity 

(and types within those classes), such as 

agave spirits (or Tequila). 

The proposed rule also included a 

clarification of current TTB policy, 

which is that a person may not add 

additional spirits to a base spirit in a 

flavored spirits product, even if the 

additional spirits are mixed into an 

intermediate product. As TTB explained 

in more detail in T.D. TTB–158, TTB’s 

longstanding policy is that Class 9 

flavored spirits must derive all of their 

spirits content from the base spirit of the 

product, in contrast with those products 

that are labeled with statements of 

composition in lieu of a class or type. 

While TTB allows for any spirit to 

appear as part of a truthful statement of 

composition, TTB stated in Notice No. 

176 that it did not believe that 

consumers perceive a distinction 

between, for example ‘‘Orange Flavored 

Tequila’’—which is how a flavored 

spirit would be designated under the 

proposed rule—and ‘‘Tequila with 

Orange Flavor’’—which is how the 

statement of composition would appear 

for a distilled spirits specialty product. 

TTB therefore proposed to allow any 

type of base spirit to be flavored in 

accordance with the flavored spirits 

standard instead of just brandy, gin, 

rum, vodka, and whisky, as permitted 

by the current regulations. Accordingly, 

proposed § 5.151 provided a class of 

flavored spirits that could be made by 

adding flavors to any base spirit made 

in accordance with the standards of 

identity set forth in the regulation. TTB 

proposed to maintain a minimum 

alcohol content at bottling of 30 percent 

(60° proof) for this revised and 

expanded class. Flavored spirits may 

contain added wine. TTB proposes to 

maintain the requirement that wine 

content above 2.5 percent (or 15 percent 

for brandy) must be disclosed on a label. 

TTB received six comments related to 

this issue. ACSA, the Tequila 

Regulatory Council, and the Mexican 

Chamber of the Tequila Industry 

supported the proposed regulation. The 

Tequila Regulatory Council noted that it 

would lessen the administrative burden 

for Tequila bottlers in the United States 

if TTB allows any base spirits to be 

flavored. The Irish Whiskey Association 

and the Ireland Department of 

Agriculture commented in opposition to 

the proposal, stating that flavored Irish 

Whiskey would be misleading. Heritage 

Distilling commented in favor of 

amendments to clarify that flavored 

Bourbon whisky is a recognized type of 

flavored whisky. The Scotch Whisky 

Association opposed allowing ‘‘flavored 

Scotch Whisky’’ on labels because the 

United Kingdom does not allow for such 

a product under its laws and 

regulations. 

TTB Response 

After careful consideration of the 

comments, TTB is finalizing the 

flavored spirits regulations as proposed 

except that TTB is modifying the 

standards of identity to provide that the 

base spirit must be a distilled spirit 

conforming to one of the standards of 

identity set forth in §§ 5.142 through 

5.148. This does not include liqueurs or 

distilled spirits specialty products, 

because these products may already 

contain natural flavors, so there is no 

need to have ‘‘flavored’’ versions of 

them. As a clarifying change, TTB is 

also adding the word ‘‘natural’’ to 

‘‘nonbeverage flavors’’ to clarify that 

there is no change to the requirement in 

TTB’s current regulations at § 5.22(i) 

that only natural (and not artificial) 

flavoring materials may be used in Class 

9 flavored spirits. 

The final rule will not require label 

changes, and simply clarifies current 

TTB policy. Industry members who 

choose to maintain their product as a 

distilled spirits specialty product will 

not need to change their labels, but may 

choose to label their products as, for 

example, ‘‘Bourbon whisky with cherry 

flavor’’ rather than ‘‘Cherry flavored 

bourbon whisky.’’ In response to the 

comment regarding the use of terms 

related to Scotland, under the final rule, 

TTB would approve the use of ‘‘Scotch 

Whisky’’ in a designation such as 

‘‘Cherry Flavored Scotch Whisky’’ if the 

base spirit meets the standards of 

identity for Scotch Whisky, regardless of 

whether the United Kingdom would 

allow this type of designation. In such 

a case, TTB notes that the product may 

be flavored in the United States or 

another country after exportation from 

the United Kingdom. TTB notes that it 

is also finalizing without change the 

standard of identity for distilled spirits 

specialty products in § 5.156. 

f. Diluted Spirits 

In Notice No. 176, TTB proposed to 

codify standards for the use of the term 

‘‘diluted.’’ As set forth in ATF Ruling 

75–32, TTB currently requires that 

distilled spirits bottled at below the 

specified alcohol content for that 

particular class be designated on the 

label as ‘‘diluted’’ in direct conjunction 

with the statement of class and type to 

which it refers. For example, under the 

standard of identity for vodka set forth 

at current § 5.22(a), vodka must be 

bottled at ‘‘not less than 80° proof.’’ As 

a result, a vodka bottled at 60° proof 

must bear the statement ‘‘diluted 

vodka’’ on the label. TTB proposed, in 

§ 5.153, to incorporate this policy into 

the regulations by establishing a class of 

spirits known as ‘‘diluted spirits.’’ This 

applies to products that would 

otherwise meet one of the class or type 

designations specified in subpart I 

except that it does not meet the 

minimum alcohol content, usually 

because of reduction of proof through 

the addition of water. Although the 

ruling states that the word ‘‘diluted’’ 

must be readily legible and as 

conspicuous as the statement of class to 

which it refers and in no case smaller 

than 8-point Gothic caps (except on 

small bottles), TTB proposed to require 

that the word ‘‘diluted’’ appear in 

readily legible type at least half the size 

of the class and type designation to 

which it refers. For example, but for the 

fact that a product is 70° proof, it would 

be eligible to be designated as ‘‘Vodka.’’ 

However, because of its lower proof, it 

must instead be designated as ‘‘Diluted 

Vodka’’. 

TTB received ten comments opposed 

to the creation of the ‘‘diluted spirits’’ 

class. For example, Spirits Europe 

questioned whether the class would 

undermine certain traditional products 


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and confuse consumers. DISCUS and 

ACSA opposed the proposed language 

and believe that consumers would 

prefer a ‘‘lite’’, ‘‘low alcohol’’ or ‘‘underproof’’ label rather than a ‘‘diluted’’ 

designation. 

TTB Response 

TTB has decided not to move forward 

with the creation of the ‘‘diluted spirits’’ 

class. TTB will maintain the comments 

related to other ways to label diluted 

products as suggestions for future 

rulemaking. The holding of ATF Ruling 

75–32, including those relating to type 

size, will remain in effect. 

5. Subpart J—Formulas for Distilled 

Spirits 

With regard to the formula 

requirements in part 5, in Notice No. 

176, TTB stated: 

The current regulations in subpart C of part 

5 set forth requirements for formulas for 

distilled spirits. In the present rulemaking, 

TTB proposes to maintain the formula 

requirements with minor changes to reflect 

current policy as set forth in TTB Industry 

Circular 2007–4. However, TTB believes 

there may be formula requirements that no 

longer serve a labeling purpose. TTB seeks 

specific comments on whether certain 

formula requirements should be eliminated 

and the rationale for such a change. TTB may 

address these issues in the final rule or in a 

separate rulemaking document. 

TTB received two comments on the 

distilled spirits formula regulations in 

proposed subpart J. ADSA commented 

in opposition to formula requirements 

for spirits that are first aged in an oak 

barrel and then aged in a different type 

of barrel, such as a barrel previously 

used to age wines or other types of 

spirits. ADSA stated that interest in this 

type of innovative production has 

grown in the past decade. Accordingly, 

ADSA urged TTB to delete from its final 

regulations the prohibition on claiming 

age for time spent in a second (or third, 

or fourth, etc.) barrel and the 

presumption that aging in a second 

barrel of different wood alters a 

product’s class or type. For the same 

reasons, ADSA urged TTB to eliminate 

the proposed formula requirement for 

the mixing of spirits subject to different 

aging methods (charred and non-charred 

barrels, etc.). At a minimum, ADSA 

stated that proposed § 5.193 requires 

substantial revisions to better clarify 

exactly when a formula is required. 

The National Association of Beverage 

Importers (NABI) noted that proposed 

§ 5.193 requires a formula where, among 

other things, distilled spirits are 

‘‘mingled,’’ and that the regulations do 

not define the term ‘‘mingling.’’ NABI 

suggested that if TTB is using the term 

‘‘mingling’’ to cover mixing or blending 

activities, then it would be clearer to use 

those terms. NABI noted that the term 

‘‘mingling’’ dates back to the pre-1980 

regulatory framework, when the IRC 

imposed a rectification tax, and that the 

term lost its significance after the repeal 

of the rectification tax. NABI stated that 

clarification of the term is important to 

importers as they need to decide 

whether they must apply for formula 

approval for specific imported distilled 

spirits products. 

TTB Response 

With regard to the ADSA comment 

regarding formula requirements for 

aging in different types of barrels, and 

the NABI comment requesting 

clarification of when a formula is 

require for ‘‘mingling,’’ TTB believes 

that the commenters have raised valid 

concerns about whether the formula 

requirements are current and easy to 

understand. 

As noted in the NABI comment, many 

of the formula requirements in part 5 

date back to pre-1980 requirements. In 

recent years, it has been TTB’s goal to 

update formula requirements on a 

regular basis through the issuance of 

public guidance. See, e.g., Industry 

Circular 2020–1, dated February 12, 

2020, Industry Circular 2018–6, dated 

September 18, 2018, and TTB Ruling 

2016–3, dated September 29, 2016. 

Accordingly, rather than revising the 

regulations in subpart J to address the 

specific issues that the commenters 

addressed, TTB is keeping the current 

regulations in place, with a change that 

will allow TTB to clarify or eliminate 

formula requirements for distilled 

spirits through public guidance, without 

amending the regulations. In this final 

rule, § 5.193 provides general rules for 

distilled spirits formulas, but also 

provides that TTB may exempt 

categories of distilled spirits products 

from specific regulatory formula 

requirements upon a finding that the 

filing of a formula is no longer necessary 

in order to properly classify the finished 

product. TTB will review the comments 

on this issue as suggestions for 

exemptions from the formula 

requirements when it issues new 

guidance on this issue, and as 

suggestions for future rulemaking to 

update the formula regulations. 

TTB has also revised the language in 

§ 5.193(a) to provide that while the 

compounding of distilled spirits 

through the mixing of a distilled spirits 

product with any coloring or flavoring 

material, wine, or other material 

containing distilled spirits generally 

requires a formula, there is an exception 

if TTB has issued public guidance 

recognizing that such ingredients are 

harmless coloring, flavoring or blending 

materials that do not alter the class or 

type pursuant to the standards set forth 

in § 5.155. This language is added for 

consistency with the provisions of TTB 

Ruling 2016–3, dated September 29, 

2016, in which TTB approved general 

formulas for vodka and rum, and certain 

types of whisky and brandy, made with 

certain specified harmless coloring, 

flavoring, or blending materials, in 

accordance with the ruling. TTB 

referred to these formulas as ‘‘generaluse formulas’’ and industry members 

who produce distilled spirits in 

conformance with a general-use formula 

do not need to submit a formula to TTB 

for approval. 

C. Amendments Specific to 27 CFR Part 

7 (Malt Beverages) 

In addition to the changes discussed 

in Section II.A. of this document that 

apply to more than one commodity, this 

section discusses proposed editorial and 

substantive changes specific to the malt 

beverage labeling regulations in part 7. 

It will not repeat the changes already 

discussed in Section II.A. of this 

document, which relate to more than 

one commodity. The substantive 

changes that are unique to part 7, on 

which TTB received comments, are 

described below, and are organized by 

subpart. Unless otherwise stated, TTB is 

finalizing the proposals in Notice No. 

176 specific to the malt beverage 

regulations in part 7. 

1. Subpart A—General Provisions 

In Notice No. 176, TTB proposed to 

set forth, in subpart A, several 

provisions with general applicability to 

part 7, including a list of defined terms, 

territorial limits of the regulations, a 

section setting forth to whom and to 

which products the regulations apply, 

and sections addressing administrative 

items such as forms used and 

delegations of the Administrator. For 

more information on the specific 

proposals for subpart A of part 7, please 

refer to Notice No. 176, section II.E.1. As 

explained below, TTB is finalizing the 

specific proposals for subpart A of part 

7, with certain changes. Among other 

things, certain minor clarifying edits 

have been made for consistency with 

statutory language and current 

requirements. 

a. Comments on Definitions in § 7.1 

In Notice No 176, TTB proposed in 

§ 7.1 a list of definitions largely 

consistent with the current regulations. 

TTB proposed to add definitions for the 

terms ‘‘keg collar’’ and ‘‘tap cover,’’ 

consistent with a proposed amendment, 


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discussed later in this document in 

Section II.C.3., to allow mandatory label 

information to appear on non-firmly 

affixed keg collars and tap covers, 

subject to certain conditions. See § 7.51, 

as finalized below. TTB is also 

finalizing its proposals to amend the 

definition of the term ‘‘bottler’’ to 

include any brewer or wholesaler who 

places malt beverages in containers 

(regardless of size), and to remove the 

definition of ‘‘packer,’’ consistent with 

amendments that remove from TTB’s 

current name and address regulations a 

distinction between ‘‘bottling’’ malt 

beverages in containers of a capacity of 

one gallon or less and ‘‘packing’’ them 

in containers in excess of one gallon. 

See Section II.A.6.d. 

TTB received several comments 

related to definitions in proposed § 7.1. 

Beverly Brewery Consultants approved 

of the proposal to remove the definition 

of ‘‘packer.’’ In a comment submitted 

previously in response to the Treasury 

Department’s RFI, the Brewers 

Association had recommended 

elimination of the distinction between 

‘‘bottler’’ and ‘‘packer,’’ although the 

Brewers Association did not address 

this issue in its comments on Notice No. 

176. 

Beverly Brewery Consultants also 

requested that TTB delete the definition 

of ‘‘Certificate of exemption from label 

approval’’ because the term is not used 

in part 7, and also suggested that TTB 

add a definition of ‘‘packaging,’’ noting 

that the term was defined nearly 

identically in proposed §§ 7.62(a), 

7.81(a)(3), 7.101(a)(3), and 7.121(a)(3). 

In addition, Beverly Brewery 

Consultants suggested adding a 

definition for ‘‘industry member.’’ 

TTB Response 

TTB is finalizing its proposal to 

eliminate the definition of ‘‘packer’’ 

from its part 7 regulations. TTB received 

two comments in support of this change 

and none opposed. In § 7.1, TTB is 

finalizing its proposed definition of 

‘‘bottler’’ as ‘‘Any brewer or wholesaler 

who places malt beverages in 

containers.’’ Also in § 7.1, TTB is 

finalizing the proposed definition of 

‘‘Certificate of exemption from label 

approval’’ to clarify that such 

certificates are available for wine and 

distilled spirits products only. See TTB 

Ruling 2013–1 (noting that, ‘‘unlike the 

regulations for wine and distilled spirits 

(set forth in 27 CFR parts 4 and 5, 

respectively) the part 7 regulations do 

not require certificates of exemption for 

malt beverages sold exclusively in 

intrastate commerce. TTB and its 

predecessor agencies have never issued 

certificates of exemption for malt 

beverages.’’). As discussed in Section 

II.C.2 below, the holdings of this ruling 

are being incorporated into the 

regulations, and thus this ruling is 

superseded by this final rule. 

In response to the comment regarding 

the definition for ‘‘packaging,’’ TTB 

included the definition of packaging 

separately in subparts E, F, G, and H for 

ease of reference and along with other 

definitions relevant to those subparts. 

TTB is finalizing those definitions as 

proposed. In response to Beverly 

Brewery Consultants’ request that TTB 

add a definition of ‘‘industry member,’’ 

TTB does not believe the definition is 

necessary because this term does not 

appear in the part 7 regulations. Where 

the term is used in relation to part 7 in 

the preamble of this final rule, it refers 

generally to the brewers, wholesalers, 

and importers of malt beverages to 

whom part 7 applies. 

b. Minimum Quantities of Barley and 

Hops 

In § 7.1, TTB proposed to retain the 

current definition of ‘‘malt beverage,’’ 

but requested comments on whether it 

should set forth any minimum 

standards for the quantity of malted 

barley or hops used in the production of 

malt beverages. The current definition 

states that malt beverages must be made 

with malted barley and hops but does 

not set forth minimum quantities. 

Two commenters opposed 

establishing minimum standards for the 

quantity of malted barley or hops 

needed for an alcohol beverage to be 

considered a malt beverage. The 

Brewers Association supported TTB’s 

decision not to include a minimum 

standard for use of barley and hops in 

its definition of ‘‘malt beverage,’’ noting 

that ‘‘[a]t this point in the evolution of 

the brewing industry, new standards for 

use of barley and hops would 

necessitate reformulation of thousands 

of malt beverages.’’ The Beer Institute 

also submitted a comment opposing 

minimum standards. TTB received no 

comments in support of establishing 

minimum standards. 

TTB Response 

TTB is not moving forward with 

minimum standards in this final rule. 

TTB will continue to enforce its current 

policy on this issue, as stated in TTB 

Ruling 2008–3. Under this policy, TTB 

does not mandate minimum quantities 

of malted barley and hops to meet the 

definition of a malt beverage. 

c. Comments on Requirement To Obtain 

a COLA 

In proposed § 7.3, TTB described the 

general requirements and prohibitions 

under the FAA Act, including the 

requirement for brewers, wholesalers, 

and importers to obtain from TTB a 

COLA covering the labeling on each 

container of a malt beverage. An owner 

of Schilling Beer Co. requested that TTB 

allow malt beverages to be shipped in 

interstate commerce after submitting 

labels to TTB, but before a COLA is 

issued, or alternatively, that TTB cease 

issuing COLAs but instead conduct 

periodic compliance checks of labels 

that are submitted. The commenter 

stated that a shutdown in government 

operations severely impacted the brewer 

and caused a delay in obtaining TTB 

label approvals. 

TTB Response 

TTB recognizes that label approvals 

are critical to brewers and that any 

disruption to normal TTB operations 

may increase label processing times. 

However, this comment is beyond the 

scope of the current rulemaking. 

Accordingly, TTB is not incorporating 

any special rules to address compliance 

with labeling requirements during 

government shutdowns in this final 

rule. 

Separately, TTB finalized technical 

changes in § 7.3(d), which generally 

describes the regulatory requirements 

under each subpart of part 7. First, 

§ 7.3(d)(3) and (5) contain editorial 

changes for consistency within § 5.3(d). 

Second, three references to regulatory 

definitions in § 7.3(d)(3)–(4) are updated 

to correspond to the correct definitions 

and subparts. 

d. Comments on ‘‘Similar’’ State Law 

In Notice No. 176, TTB proposed at 

§ 7.4 a regulation setting forth the 

jurisdictional limits of the FAA Act 

found in 27 U.S.C. 205. Generally, the 

labeling and advertising provisions of 

the FAA Act apply only to malt 

beverages shipped in interstate 

commerce. However, the penultimate 

paragraph of 27 U.S.C. 205 includes an 

additional limitation, stating the 

labeling provisions apply ‘‘to malt 

beverages sold or shipped or delivered 

for shipment or otherwise introduced 

into or received in any State’’ from any 

place outside of that State only ‘‘only to 

the extent that the law of such State 

imposes similar requirements with 

respect to the labeling . . . of malt 

beverages not sold or shipped or 

delivered for shipment or otherwise 

introduced into or received in such 

State’’ from any place outside that State. 

Section 7.4(a)(1) sets forth this 

requirement in the regulations, while 

§ 7.4(a)(2) defines ‘‘similar’’ State law as 

applying to those requirements ‘‘found 

in State laws or regulations that apply 


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specifically to malt beverages or in State 

laws or regulations that provide general 

labeling requirements that are not 

specific to malt beverages.’’ 

Separately, TTB proposed, at 

§§ 7.21(a) and 7.24(a), to require that 

bottlers and importers obtain a COLA 

for domestically bottled and imported 

malt beverages, respectively, subject to 

certain exceptions, which are addressed 

in §§ 7.21(b) and 7.24(f). These 

proposed regulations clarified, 

consistent with current regulations, that 

COLAs are required only if the laws or 

regulations of the State into which the 

malt beverages are being shipped 

‘‘require that all malt beverages sold or 

otherwise disposed of in such State be 

labeled in conformity with the 

requirements of subparts D through I of 

this part.’’ These provisions specify that 

this condition is met ‘‘when the State 

has either adopted subparts D through I 

of this part in their entireties or has 

adopted requirements identical to those 

set forth in subparts D through I of this 

part.’’ Consistent with §§ 7.4, 7.21(b), 

and 7.24(f), TTB also notes that malt 

beverages not subject to the COLA 

requirements may still be subject to the 

substantive labeling provisions of the 

part 7 labeling regulations. 

For example, under both current 

regulations and the final rule, a brewer 

may not need a COLA to ship malt 

beverages, in interstate commerce, into 

a State that has adopted some, but not 

all, of the labeling requirements of part. 

However, if the regulations of that State 

require the name and address of the 

bottler to appear on the label, in a 

manner that is similar to TTB 

requirements, and the container bears 

no information as to the name and 

address of the bottler, then the brewer 

shipping that malt beverage has violated 

both State regulations and the FAA Act, 

even though it was not required to 

obtain a COLA for the malt beverage. 

Beverly Brewery Consultants stated 

that proposed §§ 7.4(a)(2), 7.21(b), and 

7.24(f) were inconsistent in their 

discussion of State law. The commenter 

stated that while § 7.4 refers to ‘‘similar’’ 

State laws, §§ 7.21(b) and 7.24(f) refer to 

‘‘identical’’ State laws. Beverly Brewery 

Consultants stated that each section 

relates to the extent that malt beverages 

are subject to the provisions of the FAA 

Act, and therefore should use consistent 

language. NABI requested that TTB 

clarify in § 7.4 that similar State law 

refers only to State law that applies to 

alcohol beverages. For example, the 

NABI comment distinguished between a 

State consumer protection law relating 

to the labeling of foods in general that 

is broad enough to include alcohol 

beverages and a State labeling law that 

only applies to carbonated soft drinks, 

and thus would not be a similar State 

law. 

TTB Response 

TTB is finalizing §§ 7.4, 7.21(b), and 

7.24(f) as proposed, with minor editorial 

revisions that are discussed below. 

Other comments received on § 7.21 are 

discussed in Section II.C.2 below. Other 

comments received on § 7.24 are 

discussed in Section II.A.3.b. and c. 

above. 

As previously noted, Beverly Brewery 

Consultants commented that TTB was 

inconsistent in using the term ‘‘similar’’ 

State laws in § 7.4, while using the term 

‘‘identical’’ State regulations in 

§§ 7.21(b) and 7.24(f). However, TTB 

intended to use different standards in 

these regulations. TTB reiterates that 

§ 7.4 describes the jurisdictional limits 

of the labeling and advertising 

provisions of the FAA Act, whereas 

§§ 7.21 and 7.24 relate to the regulatory 

requirement to obtain a COLA. The 

statutory limits with regard to 

compliance with the substantive 

labeling requirements of the FAA Act 

for malt beverages shipped in interstate 

commerce provide there is no violation 

of the FAA Act unless the State into 

which the malt beverage is shipped has 

‘‘similar’’ State law. However, the 

regulations have always provided that 

no COLA is required for malt beverages 

shipped, in interstate commerce, into a 

State that has not adopted the labeling 

regulations in part 7. TTB and its 

predecessor agencies have interpreted 

this to mean that a COLA is required 

only if the State into which the malt 

beverages are being introduced has 

either adopted the Federal malt 

beverage labeling regulations 

(specifically or by reference) or has 

adopted labeling requirements that are 

identical in effect (not just similar) to 

those in part 7. As described above, the 

relationship to State law is different for 

each of these situations. 

This provision is consistent with 

current regulations at 27 CFR 7.40, and 

with the malt beverage COLA 

regulations since they were first adopted 

in 1936, both of which provided that the 

COLA requirement applied only where 

the State into which the malt beverages 

are being shipped had adopted the 

Federal malt beverage labeling 

regulations. In the proposed rule, TTB 

clarified the language further by 

specifically providing that this included 

the adoption of regulations identical to 

the labeling regulations in part 7. 

Because the comments indicate that this 

language may have been confusing, TTB 

is incorporating a minor technical 

change in the language of sections 

7.21(b) and 7.24(f), which now state that 

the COLA requirement applies when 

malt beverages are being shipped from 

one State into another State, and the 

destination State has either adopted 

subparts D through I of this part in their 

entireties or has adopted requirements 

identical in effect to those set forth in 

subparts D through I of this part. This 

editorial change clarifies that the 

regulations of the destination State need 

not replicate the exact text of the 

Federal regulations, word for word, but 

simply must be identical in effect to the 

labeling regulations in part 7. 

In response to NABI, TTB also finds 

that § 7.4, as proposed, accurately 

describes the relationship between 

‘‘similar’’ State law and the labeling and 

advertising provisions of the FAA Act 

applicable to malt beverages. Section 

7.4(a)(2) sets out the longstanding 

Bureau interpretation of ‘‘similar’’ State 

law by stating that if a malt beverage 

label does not violate the laws or 

regulations of the State or States into 

which the malt beverages are being 

shipped, it does not violate part 7. The 

similar State law referred to in 

§ 7.4(a)(2) therefore includes State laws 

and regulations that apply specifically 

to malt beverages and those general 

labeling requirements that are not 

specific to malt beverages, but which 

apply to malt beverages. 

TTB agrees with NABI’s comment to 

the effect that a State law that 

specifically applied only to, for 

example, carbonated soft drinks, and 

did not apply to malt beverages, would 

not be a ‘‘similar’’ State law for this 

purpose. Accordingly, the regulatory 

text in § 7.4(a)(2) has been revised to 

include the clarification that in order to 

be ‘‘similar,’’ the State requirements 

need to apply to malt beverages, even if 

their application extends more broadly 

to non-alcoholic beverages as well. As 

revised, the regulations provide that a 

‘‘similar’’ State law may be found in 

State laws or regulations that apply 

specifically to malt beverages or in State 

laws or regulations that provide general 

labeling requirements that are not 

specific to malt beverages but that do 

apply to malt beverages. 

e. Other Editorial Changes 

Beverly Brewery Consultants 

suggested other editorial and clarifying 

changes in §§ 7.7 and 7.10. For example, 

Beverly Brewery Consultants suggested 

that TTB remove a reference to 

‘‘alcoholic beverages’’ from § 7.7(a)’s 

description of the health warning 

statement required under the Alcoholic 

Beverage Labeling Act of 1988 (ABLA). 


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TTB Response 

TTB considered these 

recommendations of technical and 

clarifying changes and concluded that 

the text of the regulations as originally 

proposed clearly communicates TTB’s 

requirements. In § 7.7(a), TTB accurately 

describes the requirements of the ABLA 

as applicable to alcoholic beverages, 

including malt beverages, that contain at 

least 0.5 percent alcohol by volume. See 

27 U.S.C. 214. Separately, TTB 

corrected a minor spelling error 

corrected in § 7.10, as finalized below. 

2. Subpart B—Certificates of Label 

Approval 

In Notice No. 176, TTB proposed to 

consolidate the regulations related to 

TTB label approval in a new subpart B 

for each commodity in parts 4, 5, and 

7. TTB further proposed in § 7.21 to 

clarify that certificates of label approval 

(COLAs) are not required for malt 

beverages sold exclusively in the State 

in which the malt beverages were 

bottled. 

Proposed § 7.21(a) set forth the 

general requirement for bottlers of malt 

beverages to obtain a COLA. Section 

7.21(b) clarified that a COLA is required 

for malt beverages shipped into a State 

from outside of the State only where the 

laws or regulations of the receiving State 

require that all malt beverages sold or 

otherwise disposed of in such State be 

labeled in conformity with the 

requirements of part 7, subparts D 

through I. Proposed § 7.21(b) also noted 

that malt beverages that are not subject 

to the COLA requirements of current 

§ 7.21 may still be subject to the 

substantive labeling provisions of part 7, 

subparts D through I, to the extent that 

the State into which the malt beverages 

are being shipped has similar State laws 

or regulations. As previously noted, 

these requirements are consistent with 

the longstanding policy of TTB and its 

predecessor agencies. 

Proposed § 7.21(c) clarified that 

persons bottling malt beverages that will 

not be shipped, or delivered for sale or 

shipment, in interstate or foreign 

commerce, are not required to obtain a 

COLA or a certificate of exemption from 

label approval, along with a note 

explaining what constitutes a certificate 

of exemption from label approval. As 

noted in the NPRM, TTB has never 

issued certificates of exemption for malt 

beverages. TTB issues certificates of 

exemption from label approval to cover 

a wine or distilled spirits product that 

will not be introduced in interstate or 

foreign commerce. TTB solicited 

comments on whether the issuance of a 

certificates of exemption for malt 

beverages in such circumstances (for 

products that will not be sold outside of 

the State of the bottling brewery) would 

be useful to industry members, and 

whether the regulations should allow a 

certificate of exemption for such 

products. 

TTB received four comments on the 

proposed regulations at § 7.21. The 

Brewers Association interpreted the 

proposed regulation as requiring 

brewers to obtain COLAs if they are 

located in States that incorporate TTB 

regulations by reference or have 

identical regulations, even if the 

product was bottled for intrastate sale. 

The Brewers Association stated that the 

proposal would have the effect of 

requiring brewers and brewpubs who 

only sell malt beverages in their home 

States to now obtain a COLA. 

The Williams Group suggested that 

TTB allow industry members who are 

exempt from COLA requirements to 

request and obtain a COLA or a 

certificate of exemption ‘‘in the rare 

instance that it might be required or 

otherwise helpful.’’ NABI stated it 

would be valuable for brewers to obtain 

certificates of exemption so that the 

labels would appear on the COLA 

Public Registry, which would confirm 

that products were legally produced in 

the United States. Beverly Brewery 

Consultants suggested removing the 

note in § 7.21(c) explaining what a 

certificate of exemption from label 

approval is and replacing it with a 

statement that TTB does not issue 

certificates of exemption for malt 

beverages. 

TTB Response 

TTB is finalizing § 7.21 as proposed, 

except for the addition, at paragraph (d), 

of a provision originally proposed at 

§ 7.211, regarding the presentation of 

evidence of label approval upon request 

by an appropriate TTB official. See 

Section II.A.9.a. Section 7.21 does not 

create any new COLA requirements for 

brewers. Consistent with TTB’s current 

regulations, § 7.21 requires brewers or 

wholesalers bottling malt beverages to 

obtain a COLA prior to bottling the malt 

beverages or removing them from the 

bottling premises if the product is 

intended for sale in interstate commerce 

and if the State in which the product is 

to be sold incorporates TTB labeling 

regulations by reference or has identical 

regulations. Malt beverages intended 

only for sale intrastate are not required 

to obtain a COLA, as stated in § 7.21(c). 

In response to the comment from the 

Williams Group, requesting that COLAs 

or certificates of exemption be available 

for malt beverages that will not be 

shipped or delivered for sale or 

shipment, in interstate or foreign 

commerce, TTB notes that bottlers may 

currently apply for COLAs on a 

voluntary basis. Brewers may therefore 

apply for COLAs covering malt 

beverages currently sold in intrastate 

commerce if, for example, they believe 

the State may require such 

documentation, or to cover the 

possibility that such products may be 

sold in interstate commerce in the 

future. 

Because COLAs are granted based on 

the label’s compliance with TTB’s 

regulations in part 7, some malt 

beverages that are only distributed 

intrastate and are labeled in 

conformance with State law may not be 

eligible to obtain a COLA, such as where 

State law creates a conflicting 

requirement. This is why TTB sought 

comments on whether certificates of 

exemption should be available for malt 

beverages that are only distributed 

intrastate. While the Williams Group 

recommended making them available in 

the ‘‘rare case that it might be required 

or otherwise helpful,’’ it also stated that 

it was not aware of State requirements 

for COLAs or certificates of exemption 

for malt beverages only distributed 

intrastate. Because TTB did not receive 

comments referring to State 

requirements for TTB documentation for 

these types of malt beverages, this final 

rule does not include any provisions for 

allowing certificates of exemption for 

malt beverages on an optional basis. 

NABI suggested that requiring 

certificates of exemption for malt 

beverages sold in intrastate commerce 

would be useful, so that industry 

members could confirm, via the COLA 

Public Registry, that products were 

legally produced in the United States. 

However, the NABI comment did not 

provide any evidence to establish that 

the theoretical benefit from such a 

requirement would justify the 

additional regulatory burden. TTB notes 

that such a requirement would 

constitute a new burden on bottlers of 

malt beverages distributed only in 

intrastate commerce and would 

represent a change to longstanding TTB 

policy to not require certificates of 

exemption for malt beverages sold 

exclusively in intrastate commerce. 

Accordingly, this final rule does not 

adopt the NABI comment. 

Finally, TTB disagrees with the 

comment from Beverly Brewery 

Consultants, requesting that TTB 

remove from § 7.21(c) the parenthetical 

statement explaining what constitutes a 

certification of exemption from label 

approval. TTB believes this note in 

paragraph (c) provides useful 

information because it provides context 


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for the earlier statement in § 7.21 that 

bottlers of malt beverages that will not 

be shipped or delivered for sale or 

shipment in interstate or foreign 

commerce are not required to obtain a 

COLA or a certificate of exemption from 

label approval. 

3. Subpart D—Label Standards 

In Notice No. 176, TTB proposed a 

subpart D in each of parts 4, 5, and 7, 

containing regulations governing the 

placement of, and other requirements 

applicable to, mandatory and additional 

information on labels and containers. 

Most of the proposals applied similarly 

to the labels of the wine, distilled 

spirits, and malt beverage products. 

Specific to part 7, TTB proposed, and is 

now finalizing, an exception, for certain 

kegs, to the requirement that labels be 

firmly affixed to malt beverage 

containers. 

Generally, TTB requires that labels be 

‘‘firmly affixed’’ to malt beverage 

containers, that is, that they must be 

affixed in such manner that they cannot 

be removed without the thorough 

application of water or other solvents. 

Under § 7.51(b), TTB proposed an 

exception to this requirement for kegs 

that have a capacity of 10 gallons or 

more. The exception provided that a 

label in the form of a keg collar or a tap 

cover was not required to be firmly 

affixed, provided that the name of the 

brewer or bottler of the malt beverage 

was permanently or semi-permanently 

stated on the keg in the form of 

embossing, engraving, or stamping, or 

through the use of a sticker or ink jet 

method. (TTB notes that it inadvertently 

described the proposal as contingent on 

the name of the brewer appearing on the 

keg, but proposed regulatory text that 

provided that the name of the bottler 

appear on the keg.) 

TTB proposed this exception in 

response to requests from brewers, who 

have asserted that the requirement for 

firmly affixed labels is unduly 

burdensome as applied to kegs. Brewers 

have noted that kegs are intended to be 

reused, but that it takes considerable 

time and effort to scrape off the label 

each time a keg is to be reused. For this 

reason, brewers requested that TTB 

authorize the use of keg collars that are 

not firmly affixed to the keg, or a tap 

cover, to bear mandatory labeling 

information. 

Seven commenters addressed 

proposed § 7.51, including the proposed 

exception and the general requirement 

that labels must otherwise be firmly 

affixed to malt beverage containers. The 

commenters provided important 

information, including current practices 

of affixing labels to kegs, the burden of 

compliance with current and proposed 

regulations, and the prevalence of keg 

sharing programs. In light of those 

comments, TTB is finalizing the 

requirement that labels be firmly affixed 

to containers, as proposed at § 7.51(a), 

and is expanding the exception to this 

requirement from what was proposed at 

§ 7.51(b). 

Only the Williams Group appeared to 

support, without reservation, the 

proposed exception, for certain keg 

collars and tap covers, to the 

requirement that labels be firmly affixed 

to containers. The six other commenters 

raised one or more specific objections. 

The Brewers Association, the Beer 

Institute, and MicroStar Logistics 

opposed making the exception to the 

firmly affixed label requirement for keg 

collars and tap covers contingent upon 

permanently or semi-permanently 

marking the keg with the name of the 

bottler. The Brewers Association and 

MicroStar Logistics stated that many 

brewers rely on third-party keg-sharing 

programs and that the exception, as 

proposed, would not provide any 

additional flexibility in such 

circumstances. The Brewers 

Association, MicroStar Logistics, 

NBWA, and the Confederated Tribes of 

the Chehalis Reservation described the 

exception, with its reliance on 

identifying the brewer through marking 

on the keg, as a new requirement that 

would add costs to industry members. 

The Confederated Tribes of the Chehalis 

Reservation stated that ‘‘the current use 

of keg collars with the brewery 

information is a system that is working’’ 

and does not need to be changed. They 

stated that the proposed rule would 

impose costs on brewers and force them 

to purchase additional kegs. The Beer 

Institute requested that TTB clarify that 

brewers may use trade names in lieu of 

actual corporate names and provide 

guidance on the proposal as applied to 

contract brewing. NBWA requested that 

TTB clarify that brewers are responsible 

for affixing keg collars before kegs leave 

the brewery. 

The Brewers Association and 

MicroStar Logistics also objected to the 

existing requirement that labels must be 

‘‘firmly affixed’’ to malt beverages 

containers such that they ‘‘cannot be 

removed without thorough application 

of water or other solvents.’’ They 

described this requirement, proposed at 

§ 7.51(a) and derived from TTB’s prior 

regulations, as ‘‘out of date and 

unnecessary in light of the significant 

adoption of keg sharing programs by the 

beer industry.’’ The Brewers Association 

additionally opposed the ‘‘unnecessary 

use of additional water or solvents’’ out 

of concern for workplace safety and 

environmental protection. 

The Brewers Association, the Beer 

Institute, and MicroStar Logistics 

suggested that TTB allow firmly affixed, 

non-adhesive keg collars that ‘‘are 

specifically designed to affix to the neck 

of the keg and cannot be removed 

without deliberate effort.’’ They stated 

that the use of such collars would save 

brewers from the burden and expense of 

scraping off old labels and would still 

maintain appropriate consumer 

protections. The Brewers Association 

stressed that TTB should allow the use 

of such non-adhesive keg collars 

because other aspects of malt beverage 

distribution and sale ensure that the 

proper products are delivered from 

brewers to wholesalers, retailers, and 

consumers. The Brewers Association 

stated that kegs are transported by 

licensed carriers and wholesalers, who 

have an economic motivation to deliver 

the proper product to retailers and 

consumers. It stated that kegs are 

typically shipped from packaging 

breweries shrink wrapped and on 

pallets, which deters tampering with 

keg collars. Once in commerce, the 

Brewers Association stated that State 

laws require retailers, bars, and 

restaurants to supply the correct 

product and that permanent keg 

marking would not serve to ameliorate 

any attempts to deceive consumers 

because kegs typically are not visible to 

consumers. 

The Beer Institute, along with Beverly 

Brewery Consultants, also proposed 

extending the exception for keg collars 

to kegs with a capacity of less than 10 

gallons. The Beer Institute favored a 

minimum capacity of 5.2 gallons, while 

Beverly Brewery Consultants 

recommended allowing keg collars on 

kegs with a capacity greater than 1 

gallon. Both commenters stated that, 

because brewers frequently use a variety 

of keg sizes, these suggestions would 

allow brewers greater flexibility in 

labeling their kegs. 

Finally, the Confederated Tribes of 

the Chehalis Reservation questioned the 

impact that the requirement, in 

proposed § 7.51(a), to firmly affix labels 

would have on growlers. The 

commenter asked that the regulations 

clarify that refillable beer containers, 

such as growlers, which are refilled at 

the request of consumers at the point of 

sale, do not need to be firmly affixed 

with product information. 

TTB Response 

After reviewing the comments, TTB 

has decided to finalize, as proposed in 

§ 7.51(a), the requirement that labels be 

firmly affixed to containers, and expand 


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the exception for keg labels proposed in 

§ 7.51(b). Recognizing the points made 

in the comments by the Beer Institute, 

the Brewers Association, and MicroStar 

Logistics, TTB is providing an exception 

to the ‘‘firmly affixed’’ requirement for 

kegs to incorporate certain types of nonadhesive keg collars or tap covers. 

This final rule provides that a keg 

collar or tap cover is considered to be 

firmly affixed if removal would break or 

destroy the keg collar or tap cover in 

such a way that it cannot be reused. 

Because any attempt at removal will 

break the keg collar or tap cover, or 

render it unfit for reuse, this provision 

allows non-adhesive keg collars and tap 

covers but mitigates the risk that labels 

simply could be switched between kegs. 

TTB believes this additional option will 

reduce the burden on breweries of 

removing and replacing keg labels and 

recognizes the use of third party keg 

providers. Although the Brewers 

Association described various controls 

and requirements that deter intentional 

mislabeling of kegs in commerce, TTB 

believes that allowing keg labels that 

could be switched from one keg to 

another with minimal effort presents an 

undue risk of fraud or deliberate 

tampering that would result in 

consumer deception. 

Any keg collar or tap cover that is 

either broken or destroyed and rendered 

unfit for reuse upon removal would be 

eligible for the exception under 

§ 7.51(b)(1), including those that utilize 

tamper-resistant or tamper-evident 

seals, leave evidence of tampering 

behind, or are intended to be selfadhering as opposed to adhering 

directly to a keg. While some 

commenters suggested that TTB allow 

keg collars and tap covers that cannot be 

removed without ‘‘deliberate effort,’’ 

TTB finds that such a standard would 

be difficult to define and communicate, 

and would risk being unenforceable in 

practice. 

TTB is also finalizing the exception 

proposed in Notice No. 176 that allows 

for placement of mandatory information 

on keg collars and tap covers that are 

not firmly affixed. The exception is now 

set forth below at § 7.51(b)(2). It 

provides that a keg collar or tap cover 

is not required to be firmly affixed if the 

name of the bottler or importer is 

permanently or semi-permanently stated 

on the keg in the form of embossing, 

engraving, or stamping, or through the 

use of a sticker or ink jet method. TTB 

has added the words ‘‘or importer’’ to 

clarify that the exception applies both to 

domestically brewed and imported malt 

beverages. 

In both § 7.51(b)(1) and (b)(2), TTB is 

clarifying that these provisions apply 

only to keg collars and tap covers that 

meet the definitions of these terms in 

§ 7.1, as finalized by this rule. TTB did 

not receive comments in response to the 

proposed definitions of ‘‘keg collar’’ or 

‘‘tap cover’’ in § 7.1, which were 

proposed to provide clarity on the 

meaning of these terms in the context of 

the exception proposed at § 7.51(b). 

In response to comments by the Beer 

Institute and Beverly Brewery 

Consultants, TTB is providing 

additional flexibility by reducing the 

minimum capacity of kegs to which 

§ 7.51(b)(1) and (b)(2) apply, from the 

proposed 10 gallons to 5.16 gallons. 

Both of these commenters described 

common keg sizes used by brewers with 

a capacity of less than ten gallons, 

including ‘‘sixth barrel’’ kegs, which 

have a capacity of one-sixth of a 31- 

gallon barrel (or approximately 5.16 

gallons). In Notice No. 176, TTB 

proposed the exception to the 

requirement that labels be firmly affixed 

to containers because kegs are intended 

to be reused and brewers had expressed 

that it takes considerable effort to 

remove and replace adhesive labels on 

kegs. TTB stressed that the proposed 

exception would afford additional 

flexibility without sacrificing consumer 

protection. This remains the case for 

kegs with a minimum capacity of 5.16 

gallons. Such kegs are generally reused 

by brewers and delivered to bars or 

restaurants that dispense malt beverages 

to consumers, whereas smaller 

containers, such as one gallon kegs, 

typically are not reused and are often 

sold directly to consumers. For these 

reasons, TTB believes reducing the 

minimum keg capacity from the 

proposed 10 gallons to 5.16 gallons will 

ease the burden on industry members, 

particularly small brewers, of labeling 

and relabeling kegs while maintaining 

adequate consumer protections. 

In response to the Brewers 

Association and MicroStar Logistics 

comments requesting changes to the 

requirement that labels be firmly affixed 

to containers, which appears in 

§ 7.51(a), TTB notes that it did not 

propose changes to this standard. The 

standard, that generally labels must be 

affixed such that they ‘‘cannot be 

removed without thorough application 

of water or other solvents,’’ represents 

TTB’s general requirement for labels in 

the malt beverage industry. This 

standard also exists in the wine and 

distilled spirits regulations. Because 

TTB did not propose changes to this 

standard, it finds that this option was 

not adequately aired for comment in the 

notice, and thus will consider it for 

further rulemaking. 

The Confederated Tribes of the 

Chehalis Reservation asked TTB to 

clarify what impact the requirement to 

firmly affixed labels to containers under 

proposed § 7.51 would have on 

growlers. Section 7.51 does not create 

new requirements for growlers, which 

TTB considers to be bottles or glasses, 

depending on how they are used. See 

TTB Beer FAQs B9, What is TTB’s 

policy with respect to ‘‘growlers’’?,’’ 

available at https://www.ttb.gov/beer/ 

beer-faqs. 

Proposed § 7.51(a), requiring that 

labels be firmly affixed to containers of 

malt beverage, was derived from current 

TTB regulatory requirements. The 

exception described above only applies 

to malt beverages in kegs of 5.16 gallons 

or more. 

In response to the Beer Institute’s 

request that TTB clarify that brewers 

may use trade names in lieu of actual 

corporate names and provide guidance 

on the proposal as applied to contract 

brewing, TTB notes that § 7.51 only 

addresses how labels must be affixed to 

containers. The name and address 

statements required to appear on labels 

are described in part 7, subpart E, in 

§§ 7.66–7.68. TTB is therefore 

addressing this comment in the 

discussion of those sections below. In 

response to the NBWA request that TTB 

clarify that brewers are responsible for 

affixing keg collars before kegs leave the 

brewery, TTB refers the commenter to 

the discussion above under part 7 

subpart A. Section 7.3(c) of that subpart 

states in relevant part that brewers and 

wholesalers may only introduce in 

interstate or foreign commerce malt 

beverages in containers that are marked, 

labeled, and branded in accordance 

with the labeling requirements of part 7. 

TTB notes that subject to the 

jurisdictional limits of the FAA Act, the 

law clearly prohibits the sale or 

shipment in interstate or foreign 

commerce of wine, distilled spirits, or 

malt beverages that are not bottled, 

packaged, and labeled in accordance 

with regulations issued by the Secretary. 

See 27 U.S.C. 205(e). 

TTB is making two additional 

technical changes to proposed § 7.51. 

First, for clarity, TTB is changing the 

title of § 7.51 from ‘‘Firmly affixed 

requirements.’’ to ‘‘Requirements for 

firmly affixed labels.’’ Second, TTB is 

moving the second sentence from 

proposed § 7.51(b) to a separate 

paragraph (c). This provision states, 

‘‘This section in no way affects the 

requirements of part 16 of this chapter 

regarding the mandatory health warning 

statement.’’ Part 16 contains TTB’s 

requirements implementing the 

Alcoholic Beverage Labeling Act of 1988 


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(ABLA), which requires that a specific 

health warning statement appear on the 

labels of all containers of alcohol 

beverages for sale or distribution in the 

United States. See 27 U.S.C. 215. Part 16 

contains a separate requirement that the 

health warning statement be firmly 

affixed to alcohol beverage containers. 

See § 16.22(c). TTB is therefore making 

this change to further clarify that none 

of the provisions in § 7.51 affect the 

regulatory requirements under part 16. 

4. Subpart E—Mandatory Label 

Information 

Subpart E in part 7 sets forth the 

information that is required to appear 

on malt beverage labels (otherwise 

known as ‘‘mandatory information’’). 

Proposed changes specific to malt 

beverages included removing 

restrictions on where mandatory 

information may appear on malt 

beverage labels, allowing alternative 

statements of alcohol content (such as 

alcohol by weight), expanding the 

tolerance for statements of alcohol 

content, clarifying the permissible name 

and address statements for brewers and 

bottlers, and codifying TTB’s policy that 

statements of net contents may be 

expressed in metric units in addition to 

U.S. standard measures. For more 

information on the specific part 7 

subpart E proposals, please refer to 

Notice No. 176, Section II.E.4. In the 

case of allowing alternative statements 

of alcohol content (such as alcohol by 

weight), TTB finalized this change in 

T.D. TTB–158. Regarding name and 

address statements for brewers and 

bottlers of malt beverages, TTB 

discussed these requirements along with 

similar requirements for wine and 

distilled spirits regulations above in 

Section II.A.6.d. 

a. Placement of Mandatory Information 

In Notice No. 176, TTB proposed in 

§ 7.63 a provision to allow mandatory 

information to appear on any label on a 

malt beverage container. TTB is 

finalizing this proposal. TTB’s current 

regulations require certain mandatory 

information to appear on a ‘‘brand 

label,’’ while other mandatory 

information or additional information 

could appear on any label. Our current 

regulations define brand label as ‘‘[t]he 

label carrying, in the usual distinctive 

design, the brand name of the malt 

beverage.’’ TTB proposed to remove this 

requirement because in practice, many 

malt beverage labels wrap around the 

container. As a result, mandatory 

information often appears anywhere on 

certain cans or bottles. 

TTB did not receive any comments for 

or against this change specifically as 

applied to malt beverages. Therefore 

§ 7.63 is finalized as proposed. 

TTB notes that it may take some time 

to make conforming changes to the 

COLAs Online system to remove 

references to a ‘‘brand label.’’ COLA 

applicants may, in the interim, simply 

designate in COLAs Online any label 

bearing the brand name as the ‘‘brand 

label.’’ 

b. Alcohol Content Statements for Malt 

Beverage Labels 

In Notice No. 176, TTB proposed to 

increase the alcohol content tolerance 

for malt beverages from 0.3 percent 

above or below the labeled alcohol 

content to 1 percent above or below. 

However, TTB is not finalizing this 

proposal. TTB made this proposal with 

the understanding that some brewers, 

especially small brewers, avoid putting 

optional alcohol content statements on 

malt beverage labels because of 

difficulty maintaining precise alcohol 

content from batch to batch. Currently, 

alcohol content statements must only be 

included on malt beverage labels if the 

product contains alcohol derived from 

added flavors or other added 

nonbeverage ingredients (other than 

hops extract) containing alcohol. TTB 

stated that it believed increasing the 

tolerance for malt beverage alcohol 

content statements would encourage 

more brewers to include such 

statements when they are otherwise 

optional. TTB stated that it did not 

believe that a one percentage point 

variation from the labeled alcohol 

content would significantly impact 

consumers. TTB noted that under both 

its current regulations, and those 

finalized by this rule at § 7.65(c)–(e) 

below, the alcohol content tolerance is 

restricted in the case of malt beverages 

labeled with the statements ‘‘low 

alcohol,’’ ‘‘reduced alcohol,’’ ‘‘nonalcoholic,’’ and ‘‘alcohol free.’’ For 

example, alcohol content for malt 

beverages labeled as ‘‘low alcohol’’ or 

‘‘reduced alcohol’’ must be less than 2.5 

percent alcohol by volume. Likewise, 

malt beverages labeled ‘‘non-alcoholic’’ 

must contain less than 0.5 percent 

alcohol, and ‘‘alcohol free’’ malt 

beverages must contain no alcohol. 

Four commenters, the Brewers 

Association, the Beer Institute, Beverly 

Brewery Consultants, and a team of 

professors from Abertay University and 

Heriot Watt University in Scotland, 

commented on TTB’s proposed alcohol 

content tolerance for malt beverages in 

§ 7.65. Beverly Brewery Consultants 

supported the proposed increase, noting 

that fermentation may result in batches 

of the same product that vary by alcohol 

content. The Brewers Association also 

supported the proposed increase in the 

alcohol content tolerance. The Brewers 

Association proposed that TTB require 

disclosure of alcohol content on malt 

beverage labels, provided it increased 

the tolerance as proposed. Prior to the 

publication of Notice No. 176, in its 

response to the Treasury Department’s 

RFI, the Brewers Association also 

suggested maintaining the existing 

tolerance of plus or minus 0.3 percent 

for malt beverages below 5 percent 

alcohol-by-volume (ABV) and 

increasing the tolerance to plus or 

minus 0.5 percent for malt beverages 

with an alcohol content at or above 5 

percent ABV. 

The Beer Institute opposed the 

proposed increase of the alcohol 

tolerance for malt beverages. It stated 

that the proposed increase was too great 

and would undermine provisions of the 

FAA Act that direct the Secretary to 

promulgate regulations that prevent 

consumer deception, provide adequate 

information to consumers, and prohibit 

false or misleading statements. Further, 

the Beer Institute stated that the 

increase could confuse, mislead, and 

possibly endanger consumers due to 

higher than labeled alcohol content. The 

Beer Institute also expressed concern 

about the relationship of an increased 

tolerance to other TTB requirements, 

such as the labeling of low or reduced 

alcohol malt beverages and the use of 

optional Serving Facts statements. It 

raised concerns that brewers might use 

the increased tolerance to either save 

costs by brewing near the low end of the 

tolerance, or provide more alcohol than 

is labeled by brewing at the high end. 

The Beer Institute recommended 

keeping the current tolerance, which it 

stated balances the technical challenges 

of brewing with the consumer interest 

in predictable alcohol content. 

The team of professors supported the 

proposed increase and submitted the 

results of a study of beers brewed in the 

United Kingdom showing that a 

significant fraction fell outside a 

tolerance of plus or minus 0.3 percent. 

TTB Response 

TTB is not finalizing the proposal to 

increase the alcohol content tolerance 

for malt beverages from 0.3 percent to 1 

percent. Commenters have raised 

important issues in support of, and in 

opposition to, the proposal. The 

comments from the Brewers 

Association, Beverly Brewery 

Consultants, and the team of professors 

supported an expanded tolerance and 

observed that some brewers have 

difficulty maintaining precise alcohol 

content in malt beverages from batch to 

batch. However, TTB notes that the 


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Brewers Association’s comment to the 

RFI sought a smaller increase (to plus or 

minus 0.5 percent) for those malt 

beverages with an alcohol content at or 

above 5 percent alcohol by volume, and 

no increase at all for other malt 

beverages. 

TTB notes that it does not agree with 

a comment from the Beer Institute, 

which stated that an increased alcohol 

content tolerance would allow malt 

beverages labeled as ‘‘low alcohol’’ to 

contain one percentage point more 

alcohol than is labeled. This is not the 

case. As noted above, § 7.65 maintains 

the alcohol tolerance limitations from 

TTB’s current regulations, including for 

malt beverages labeled as low or 

reduced alcohol. Under § 7.65(d), as 

finalized, alcohol content for such malt 

beverages must be less than 2.5 percent 

alcohol by volume regardless of the 

otherwise permitted tolerance. 

Regarding the issue of increasing the 

tolerance for alcohol content, the 

Brewers Association appeared to request 

that disclosure of alcohol content be 

made mandatory for all malt beverages, 

and that TTB should increase the 

tolerance as part of such a change. In 

Notice No. 176, TTB stated that it was 

not proposing to expand the types of 

malt beverages for which an alcohol 

content statement would be mandatory. 

Accordingly, TTB finds that aspect of 

the Brewers Association comment to be 

outside the scope of this rulemaking. 

Based on the comments received in 

response to the proposal on alcohol 

content tolerances, TTB has concluded 

that whether the alcohol content 

tolerance for malt beverages should be 

increased requires further consideration. 

As a result, TTB is finalizing § 7.65 

without changing the alcohol content 

tolerance for malt beverages. The 

tolerance remains 0.3 percent above or 

below the stated alcohol content, subject 

to the limitations described in § 7.65. 

TTB will treat the Brewers Association 

comment as a request for further 

rulemaking on this issue. 

TTB is also finalizing proposed 

§ 7.65(b) with minor modifications. In 

T.D. TTB-–158, TTB amended existing 

regulations on alcohol content 

statements to provide that, while a 

statement of alcohol content must be 

expressed as a percentage of alcohol by 

volume, other truthful, accurate, and 

specific factual representations of 

alcohol content, such as alcohol by 

weight, may be made, as long as they 

appear together with, and as part of, the 

statement of alcohol content as a 

percentage of alcohol by volume. This 

document incorporates this amendment, 

with minor clarifying changes. 

Consistent with current regulations, the 

final rule clarifies that § 7.65 applies 

only where State law does not either 

prohibit alcohol content statements or 

provide its own requirements for the 

manner of such statements. The final 

rule also removes, as unnecessary, 

language clarifying that a mandatory 

alcohol content statement may not be 

expressed as a range or by maximums or 

minimums. 

c. Net Content Labeling for Malt 

Beverages 

In Notice No. 176, TTB proposed at 

§ 7.70 to amend the net content labeling 

regulations for malt beverages to reflect 

current policy by specifically stating in 

the regulations that malt beverages may 

be labeled with the equivalent metric 

measure in addition to the mandatory 

U.S. measure. (As explained further 

below, the notice referred to ‘‘U.S. 

standard measures’’ to mean U.S. 

customary units of measurement, e.g., 

U.S. gallons, quarts, pints, and fluid 

ounces). TTB noted that current 

regulations allow for the use of U.S. 

standard measures, but do not address 

whether metric contents also may be 

displayed. Because current TTB policy 

is to allow net contents to be expressed 

in both formats, TTB proposed that 

§ 7.70 allow for the statement of net 

contents of metric measurements in 

addition to, but not in lieu of, the U.S. 

standard measures. TTB did not receive 

comments for or against this proposal. 

In the interim, this change was 

adopted in the current malt beverage net 

content labeling regulations by T.D. 

TTB–165. The summary of that final 

rule explained that: ‘‘TTB is also 

amending the labeling regulations for 

distilled spirits and malt beverages to 

reflect current policy by specifically 

stating in the regulations that distilled 

spirits may be labeled with the 

equivalent standard United States (U.S.) 

measure in addition to the mandatory 

metric measure, and that malt beverages 

may be labeled with the equivalent 

metric measure in addition to the 

mandatory U.S. measure.’’ 

Separately, in response to the 

Treasury Department’s RFI, the Brewers 

Association suggested that, for malt 

beverage containers with volumes of 

between one pint and one quart, TTB 

should allow the expression of net 

contents as fluid ounces only. Currently, 

net contents for containers of this size 

must be expressed as fractions of a 

quart, or in pints and fluid ounces. 

TTB Response 

Because TTB did not receive 

comments on its proposal to allow the 

statement of net contents in metric 

measurements in addition to, but not in 

lieu of, the U.S. standard measures, and 

because this change has already been 

made in the regulations as amended by 

T.D. TTB–165, TTB is finalizing § 7.70 

as proposed. TTB is making a minor 

editorial revision to refer to the U.S. 

standard measures as ‘‘U.S. customary 

units of measurement.’’ While both 

terms have the same meaning, TTB 

finds that the term ‘‘customary’’ 

describes this system of measurement 

more accurately than the term 

‘‘standard.’’ 

In response to the RFI comment from 

the Brewers Association, TTB notes that 

it did not propose changes to the 

permissible format of U.S. standard 

units. It is not clear whether industry 

members and consumers were given 

adequate notice that such formatting 

requirements were subject to change. 

TTB is therefore not adopting this 

suggestion from the Brewers 

Association. TTB may consider changes 

to the permissible formats for net 

contents statements in a future 

rulemaking. 

5. Subpart H—Labeling Practices That 

Are Prohibited if They Are Misleading 

In Notice No. 176, TTB proposed, in 

subpart H of parts 4, 5, and 7, 

regulations on labeling practices that are 

prohibited if they are misleading. See 

section II.B.6. TTB responds above to 

comments on proposals that apply 

similarly to wine, distilled spirits, and 

malt beverages. See section II.A.7.h. 

Regarding malt beverages specifically, 

TTB is incorporating in § 7.128 text 

from TTB’s current regulations, which 

prohibits malt beverage labels from 

containing statements or representations 

that tend to create a false or misleading 

impression that a malt beverage 

contains distilled spirits or is a distilled 

spirits product. TTB is also adding in 

§ 7.128(b)(4), based on current guidance, 

a provision that truthful and accurate 

statements about production of a malt 

beverage, such as ‘‘aged in whisky 

barrels,’’ do not violate this standard. 

See TTB Ruling 2015–1. 

Finally, based on comments received, 

TTB is not finalizing proposed § 7.131, 

which contained a prohibition from 

TTB’s current regulations on the use of 

the term ‘‘bonded’’ or similar terms that 

may imply governmental supervision 

over the production, bottling, or packing 

of a malt beverages product. TTB does 

not believe a separate regulation is 

necessary in this area and is opting to 

rely on its general prohibition against 

statements or representations, 

irrespective of falsity, that tend to 

mislead consumers. 


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a. Claims Related to Distilled Spirits 

In Notice No. 176, TTB proposed 

regulations at §§ 4.128, 5.128, and 7.128 

prohibiting labeling statements that 

tended to create a false or misleading 

impression that products of one 

commodity contain or are themselves a 

different commodity. In the case of malt 

beverages, the proposed regulation at 

§ 7.128 prohibited labeling statements 

that would create a misleading 

impression that a malt beverage product 

contained or was itself a distilled spirit 

or wine product. The proposed 

regulations also would have prohibited 

homophones or coined words that 

simulate or imitate a class or type 

designation of a different commodity. 

TTB proposed this requirement based 

on its receipt of increasing numbers of 

applications for approval of labels that 

contained such terms. 

In T.D. TTB–158, TTB decided not to 

finalize proposed §§ 4.128, 5.128, and 

7.128, stating in response to comments 

that ‘‘a blanket approach to crosscommodity terms * * * could 

unnecessarily restrict creativity in the 

use of truthful and non-misleading 

representations on labels.’’ However, as 

discussed in Notice No. 176, current 

TTB regulations continue to prohibit 

misleading representations that a malt 

beverage product contains or is itself a 

distilled spirit product. See 27 CFR 

7.29(a)(7). TTB received two comments 

in relation to this current regulation. 

The Beer Institute, although it opposed 

the language in proposed § 7.128, which 

took a more expansive approach to 

cross-commodity terms in general, 

supported TTB’s current regulation. The 

Williams Group, however, commented 

that both TTB’s current and proposed 

regulations limit producers’ freedom to 

be creative. The Williams Group also 

stated that consumers are able to read 

labels and determine the type of 

commodity. 

Both proposed § 7.128 and TTB’s 

current regulation at § 7.29(a)(7) listed 

three types of labeling statements that 

TTB does not consider to create a false 

or misleading impression that a malt 

beverage contains distilled spirits or is 

a distilled spirits product. They are 

truthful and accurate statements of 

alcohol content, the use of a brand name 

of a distilled spirits product as a malt 

beverage brand name, or the use of a 

cocktail name as a brand name or 

distinctive or fanciful name. In Notice 

No. 176, TTB proposed to add items to 

this list. First, TTB proposed to allow 

truthful and accurate statements about 

the production of a malt beverage, such 

as ‘‘aged in whisky barrels’’ or ‘‘Beer 

brewed with chardonnay grapes.’’ This 

provision was based on labeling 

guidance in TTB Ruling 2014–4. TTB 

notes that Ruling 2014–4 was 

superseded by TTB Ruling 2015–1, 

which includes the content of Ruling 

2014–4 in its entirety. Second, based on 

provisions in the Beverage Alcohol 

Manual for malt beverages, TTB 

proposed to allow the use of the 

designations ‘‘barley (or wheat or rye) 

wine ale’’ or ‘‘barley (or wheat or rye) 

style wine ale.’’ Third, TTB proposed to 

add a new provision, permitting ‘‘[t]he 

use of terms that simply compare malt 

beverage products to wine or distilled 

spirits products without creating a 

misleading impression as to the identity 

of the product.’’ 

The Beer Institute opposed adding 

these three items, on the grounds that 

TTB personnel in the future may 

interpret the exceptions as defining the 

limits of what labeling claims or 

statements related to non-malt beverage 

products may be used. In contrast, 

Beverly Brewery Consultants supported 

listing specific terms in the regulations 

to clarify to brewers that use of these 

terms on labels is permissible. TTB 

notes that while the Beer Institute 

opposed proposed § 7.128, it did not 

oppose the existing restrictions from the 

prior regulation at § 7.29(a)(7) and 

recommended that such restrictions be 

extended to wine product labels. 

Finally, Beverly Brewery Consultants 

expressed concern that the proposed 

regulation could impact currently 

permissible statements on malt beverage 

labels, such as those comparing malt 

beverage products to ‘‘champagne.’’ 

TTB Response 

TTB is finalizing at § 7.128 its current 

regulation from § 7.29(a)(7), which 

prohibits malt beverage labels from 

containing statements or representations 

that tend to create a false or misleading 

impression that a malt beverage 

contains distilled spirits or is distilled 

spirits product.’’ In response to the 

Williams Group, TTB believes its 

current regulation does not limit 

product innovation, because statements 

or representations related to distilled 

spirits are still permitted, provided they 

do not create a false or misleading 

impression about the identity of the 

product. For the same reason, TTB 

believes this provision is necessary for 

consumer protection. 

TTB is also finalizing the provision 

proposed at § 7.128(b)(4), which 

incorporates current guidance to state 

that truthful and accurate statements 

about the production of a malt beverage, 

such as ‘‘aged in whisky barrels’’ are not 

prohibited. However, TTB is not 

including the proposed examples 

relating to the use of grapes in the 

production of beer (‘‘fermented with 

grapes’’ and ‘‘Beer brewed with 

chardonnay grapes’’), because they 

relate to the proposed regulatory 

language about misleading crosscommodity comparisons with wine, 

which was not finalized. Similarly, this 

final rule makes conforming changes to 

§ 7.143(h)(3), which describes 

designations related to barrel aging that 

TTB would consider misleading, to 

remove examples of designations that 

mention wine or grapes. These types of 

claims remain subject to the general 

prohibition against misleading labeling 

statements. 

TTB is also not finalizing in § 7.128 

the proposed provision permitting terms 

‘‘barley (or wheat or rye) wine ale’’ or 

‘‘barley (or wheat or rye) style wine 

ale,’’ because they also relate 

specifically to claims related to wine. 

TTB’s policy permitting these terms 

remains in effect, as reflected in the 

class and type regulations that are 

finalized at § 7.143(g). 

TTB is also not finalizing the 

provision permitting labeling statements 

that simply compare malt beverage 

products to wine or distilled spirits 

products, without creating a misleading 

impression as to the identity of the 

product. Upon further review, this 

provision does not provide additional 

clarity over and above the general 

prohibition in § 7.128(a), that labels may 

not create a false or misleading 

impression that a malt beverage 

contains distilled spirits or is a distilled 

spirits product. 

b. Use of the Term ‘‘Bonded’’ 

In proposed § 7.131, TTB maintained 

a provision from its current regulations 

that prohibited the use on malt beverage 

labels of the term ‘‘bonded’’ or similar 

terms that may imply governmental 

supervision over the production, 

bottling, or packing of the product. TTB 

sought comments, however, on whether 

it should continue to prohibit the use of 

such terms on malt beverage labels. 

Two commenters responded to TTB’s 

proposal. The Williams Group and 

Beverly Brewery Consultants both stated 

that the prohibition is unnecessary and 

outdated. The Williams Group stated 

that the term had little meaning and 

would not mislead consumers or cause 

them to believe that distilled spirits had 

been added to a malt beverage. Beverly 

Brewery Consultants stated that there 

did not appear to be a need to retain the 

prohibition. TTB also notes that the 

Brewers Association submitted a 

comment in response to the Treasury 

Department’s RFI stating that there is no 

reason to prohibit the use of the word 


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‘‘bonded’’ on malt beverage labels 

because the word ‘‘has no meaning 

related to malt beverages.’’ 

TTB Response 

Based on the comments received, TTB 

is eliminating the prohibition on the use 

of the word ‘‘bonded’’ or similar terms 

on malt beverage labels. Commenters 

generally stated that use of the term 

‘‘bonded’’ or similar terms on malt 

beverages labels would not tend to 

mislead consumers. TTB notes that the 

general prohibition in § 7.122 against 

statements or representations, 

irrespective of falsity, that mislead 

consumers is finalized as proposed. 

This provision extends to labeling 

statements that use the term ‘‘bonded’’ 

or similar terms in a misleading fashion, 

for example, implying government 

supervision or certification that actually 

was not provided. Such uses would be 

prohibited under TTB’s general 

prohibition on misleading labeling. See 

27 CFR 7.102. 

6. Subpart I—Class and Type 

In Notice No. 176, TTB proposed to 

reorganize and amend its class and type 

designations for malt beverages. These 

regulations appear in current § 7.24 and 

were proposed to be reorganized into 

part 7 subpart I, §§ 7.141–7.147. 

Part 7 does not prescribe standards of 

identity for malt beverages. Instead, 

current § 7.24(a) provides that 

statements of class and type for malt 

beverages shall conform to the 

designation of the product as known to 

the trade. If the product is not known to 

the trade under a particular designation, 

a distinctive or fanciful name, together 

with an adequate and truthful statement 

of composition of the product, shall be 

stated, and such statement is treated as 

a statement of class and type for 

purposes of part 7. 

TTB did not propose now to include 

specific standards of identity. Proposed 

§ 7.141 is derived from 27 CFR 7.24(a) 

and sets out standards for class and type 

designations on malt beverages. This 

section explains that the class of the 

malt beverage must be stated on the 

label. The type may optionally be stated. 

Statements of class and type must 

conform to the designation of the 

product as known to the trade. If the 

product is not known to the trade, the 

product must contain a distinctive or 

fanciful name as well as a statement of 

composition. 

Proposed § 7.141 differs from the 

current regulations in that it proposes to 

define a ‘‘malt beverage specialty’’ as a 

malt beverage that does not fall under 

any of the class designations set forth in 

part 7 and is not known to the trade 

under a particular designation, usually 

because of the addition of ingredients 

such as colorings, flavorings, or food 

materials, or the use of certain types of 

production processes. Such beverages 

will not be designated as ‘‘malt beverage 

specialties’’ on the label, but the term 

reflects current usage and is a 

convenient way to refer to such 

products in the regulations. 

Proposed § 7.142 sets out class 

designations. Any malt beverage may be 

designated simply as a ‘‘malt beverage.’’ 

The designations ‘‘beer’’, ‘‘ale’’, 

‘‘porter’’, ‘‘stout’’, ‘‘lager’’, and ‘‘malt 

liquor’’ may be used to designate malt 

beverages that contain at least 0.5 

percent alcohol by volume and that 

conform to the trade’s understanding of 

those designations. TTB proposes to 

allow these designations to be preceded 

or followed by descriptions of the color 

of the product (such as brown, red, or 

golden). 

Proposed § 7.143 is largely consistent 

with existing regulations on class and 

type designations. There are new 

proposed provisions for ‘‘ice beer,’’ 

‘‘wheat beer,’’ ‘‘rye beer,’’ and ‘‘barley 

wine ale,’’ consistent with existing TTB 

policy. 

The proposed regulations in proposed 

§§ 7.143(h) and 7.144 reflect changes 

adopted in TTB Ruling 2014–4 (which 

was then superseded by TTB Ruling 

2015–1) with respect to the labeling of 

malt beverage products fermented or 

flavored with honey, certain fruits, and 

certain spices. In response to a petition 

from the Brewers Association, TTB 

exempted certain malt beverages from 

the formula requirements under part 25, 

and liberalized the labeling rules 

applicable to these products. We 

proposed to codify these labeling 

standards in the regulations. 

Malt beverages that are not ‘‘known to 

the trade’’ are required to be labeled 

with a statement of composition. 

Proposed § 7.147 sets forth provisions 

for statements of composition on malt 

beverages. These provisions reflect 

current policy. Specifically, a statement 

of composition is required to appear on 

the label for malt beverage specialty 

products, as defined in proposed 

§ 7.141(b), which are not known to the 

trade under a particular designation. For 

example, the addition of flavoring 

materials, colors, or artificial sweeteners 

may change the class and type of the 

malt beverage. The statement of 

composition along with a distinctive or 

fanciful name serves as the class and 

type designation for these products. 

TTB notes that this final rule does not 

adopt the proposed regulations 

regarding the use of geographical names 

on malt beverage labels in §§ 7.142(c) 

and 7.146. 

Instead, due to issues raised by 

commenters relating to compliance with 

international agreements to which the 

United States is a party, TTB is retaining 

its geographical names regulations 

under current § 7.24(f)–(h), codifying 

them at § 7.146 with organizational 

changes only. This determination is 

discussed in Section II.A.8.a. Otherwise, 

TTB is finalizing §§ 7.141–7.147 as 

proposed, with only minor changes as 

discussed below. 

a. General Support and Opposition 

TTB received one comment generally 

in favor of the reorganized class and 

type regulations changes, and one 

opposed. Beverly Brewery Consultants 

supported the reorganization of TTB’s 

class and type regulations, stating that it 

was more logical and would enable 

users to find information more easily. 

Beverly Brewery Consultants also 

supported the proposed definition of 

‘‘malt beverage specialty products’’ at 

§ 7.141. The Brewers Association, 

however, opposed the proposed 

regulations at §§ 7.141–7.144 and 7.147, 

stating that they ‘‘are based on 

longstanding concepts used in distilled 

spirits labeling and advertising 

regulations’’ which ‘‘are not generally 

understood by brewers and would 

necessitate many changes in existing 

labels and advertisements.’’ The 

association requested that TTB retain 

the language addressing class and type 

found in the current regulations in 

§ 7.24. Finally, Beverly Brewery 

Consultants suggested editorial changes 

at § 7.141(b) for clarity by breaking up 

the text into multiple sentences. 

TTB Response 

In response to the Brewer’s 

Association’s comment questioning the 

use of certain concepts, TTB believes 

the comment potentially refers to the 

terms ‘‘malt beverage specialty 

products’’ and ‘‘distinctive or fanciful 

name.’’ The inclusion of these terms 

does not reflect substantive changes to 

the class and type regulations for malt 

beverages. Under both TTB’s current 

and proposed regulations, statements of 

class and type must conform to the 

designation of the product as known to 

the malt beverage trade, and if the 

product is not known to the trade, it 

must be labeled with a distinctive or 

fanciful name as well as a statement of 

composition. 

Proposed § 7.141 designated such 

products not known to the trade under 

a particular designation as ‘‘malt 

beverage specialty products.’’ Thus, 

while the term ‘‘malt beverage specialty 


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products’’ is new to the regulations, the 

concept is not new to the malt beverage 

industry. It currently appears in 

Formulas Online and COLAs Online 

and is merely a way to refer to those 

products ‘‘not known to the trade.’’ TTB 

also notes that the term ‘‘distinctive or 

fanciful name’’ appears in TTB’s current 

malt beverage class and type 

regulations. See 27 CFR 7.24(a). The 

inclusion of these terms will not result 

in changes to existing malt beverage 

labels or advertising because the 

substantive provisions are the same in 

both the current and proposed 

regulations and the terms themselves 

are not required to appear on labels. 

In response to Beverly Brewery 

Consultant’s editorial comments, TTB 

reviewed the text for clarity and found 

that it sufficiently communicates TTB’s 

requirements. 

b. Oak Barrels 

TTB proposed in § 7.143(h) to 

expressly permit non-misleading 

labeling statements that describe malt 

beverages aged in barrels or with 

woodchips, spirals, or staves derived 

from barrels. TTB is finalizing § 7.143(h) 

as proposed. Paragraph (h)(2) of this 

section provided examples of acceptable 

designations such as ‘‘beer aged in an 

oak barrel,’’ ‘‘bourbon barrel aged honey 

ale,’’ and ‘‘wine barrel aged beer.’’ NABI 

noted that in Notice No. 176, TTB 

proposed a definition of ‘‘oak barrel’’ in 

its part 5 regulations regarding the 

labeling of distilled spirits and asked 

that TTB clarify what is meant by the 

term ‘‘oak barrel’’ as it appears in 

§ 7.143(h). 

TTB Response 

TTB does not believe it is necessary 

to add a separate definition of ‘‘oak 

barrel’’ in part 7. Section 7.143(h) 

describes statements relating to barrel 

aging of malt beverages, and is not 

limited to oak barrels. TTB also notes 

that it previously declined to finalize 

the proposed definition of ‘‘oak barrel’’ 

for purposes of distilled spirits labeling. 

See T.D. TTB–158. 

c. Comments on Existing and Additional 

Designations 

As noted above, TTB proposed in 

§ 7.142(b)(1) to expressly allow 

descriptions of color (e.g., ‘‘amber,’’ 

‘‘brown,’’ or ‘‘red’’) and descriptive 

terms (e.g., ‘‘dry,’’ ‘‘cream,’’ or ‘‘pale’’). 

TTB also proposed to recodify at 

§ 7.142(b)(2) a provision from TTB’s 

current regulations at § 7.24(e) stating 

the requirement that: ‘‘No product other 

than a malt beverage fermented at a 

comparatively high temperature, 

possessing the characteristics generally 

attributed to ‘ale,’ ‘porter,’ or ‘stout’ and 

produced without the use of coloring or 

flavoring materials (other than those 

recognized in standard brewing 

practices) may bear any of these class 

designations.’’ Among other type 

designations, proposed § 7.143 included 

a new proposed definition for ‘‘black 

and tan,’’ describing it as a product 

containing two classes of malt beverage 

with the names of the two classes 

displayed together along with the term 

‘‘black and tan,’’ for example, ‘‘Black 

and Tan, Stout and Ale.’’ 

Beverly Brewery Consultants 

suggested adding the terms ‘‘session’’ 

and ‘‘imperial’’ to the descriptive terms 

allowed with class designations 

included in proposed § 7.142. The 

Brewers Association submitted 

comments relating to class-and-type 

issues in its response to the Treasury 

Department’s RFI. In those comments, 

the association recommended removing 

the requirement that products labeled as 

‘‘ale,’’ ‘‘porter,’’ and ‘‘stout’’ must be 

fermented at a comparatively high 

temperature. The Brewers Association 

states that ale may be brewed at lower 

temperatures than in the past because 

‘‘modern brewing practice utilizes many 

yeast strands.’’ TTB notes that the 

association did not specifically address 

this issue in its comments on Notice No. 

176. 

Finally, Beverly Brewery Consultants 

suggested that TTB amend its definition 

of ‘‘black and tan’’ in proposed § 7.143. 

The comment recommended that 

because this designation does not imply 

equal parts of the two classes, a 

minimum quantity of at least 25 percent 

of one of the classes should be a 

requirement for this designation. 

TTB Response 

TTB did not propose to incorporate 

into the regulations the additional 

descriptive terms that Beverly Brewery 

Consultants requested (‘‘session’’ and 

‘‘imperial’’), but will consider this as a 

suggestion for future rulemaking. TTB 

will continue its policy of allowing such 

terms on labels. 

TTB also declines to remove the 

requirement that ales, porters, and 

stouts be fermented at a comparatively 

high temperature, which was simply a 

reissuing of TTB’s current regulation, 

set forth with only a minor 

typographical change. Because TTB did 

not air for public comment any 

revisions to these longstanding 

regulatory provisions, it would not be 

appropriate to adopt changes in this 

final rule. TTB will consider these 

comments as suggestions for future 

rulemaking. 

Regarding the proposed type 

designation for ‘‘black and tan,’’ TTB’s 

Beverage Alcohol Manual for Malt 

Beverages (TTB P 5130.3) currently 

provides that this type designation 

covers products where two classes of 

malt beverage are present in the 

product, and both classes are stated on 

the label in conjunction with the words 

‘‘black and tan.’’ 

The comment from Beverly Brewery 

Consultants suggested that a minimum 

quantity of at least 25 percent of one of 

the classes should be a requirement for 

this designation. However, by 

definition, if the product is composed of 

only two different classes, at least one 

of the classes would always make up at 

least 25 percent of the product. If the 

commenter meant to instead suggest 

that each one of the classes should make 

up at least 25 percent of the finished 

product, TTB notes that Beverly 

Brewery Consultants did not articulate, 

and TTB is not aware of, any reason to 

believe that such a requirement is 

necessary in order to avoid consumer 

deception. Furthermore, such a 

requirement would also restrict industry 

flexibility. TTB sees no reason to further 

restrict the use of the term. Accordingly, 

TTB is finalizing the proposed type 

designation in § 7.143. 

D. Amendments of the Advertising 

Regulations 

In Notice No. 176, TTB proposed to 

consolidate its alcohol beverage 

advertising regulations in a new part, 27 

CFR part 14, Advertising of Wine, 

Distilled Spirits, and Malt Beverages. 

The proposed part 14 contained only 

those updates needed to conform certain 

regulated practices to the updates being 

proposed for the labeling provisions. 

Additional updates to the regulations on 

advertising to address contemporary 

issues, such as social media, in more 

detail were not proposed, but TTB 

stated that such amendments might be 

proposed in future rulemaking 

initiatives. 

In this final rule, TTB is not moving 

forward with the reorganization of the 

advertising regulations into a part 14. 

Instead, this final rule simply retains the 

existing regulations on advertising in 

parts 5 and 7 with minor modifications. 

As explained earlier, this final rule does 

not amend the labeling or advertising 

regulations in part 4, which relate to 

wine. Instead, TTB plans to address 

these issues in a future rulemaking, 

which will reorganize part 4 in a 

manner similar to the way in which 

parts 5 and 7 are being reorganized, and 

which will also address the substantive 

issues raised by the commenters on the 

labeling and advertising of wine. At that 


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time, TTB will also pursue the 

reorganization of the advertising 

regulations pertaining to wine, distilled 

spirits, and malt beverages in a new part 

14, as proposed in Notice No. 176. 

Pending the reorganization of the 

advertising regulations into a proposed 

part 14, this final rule simply retains the 

existing regulations on advertising in 

parts 5 and 7, with minor modifications 

for consistency with changes that were 

made to the labeling regulations in this 

final rule. For example, this final rule 

adopts changes to the advertising 

regulations to conform to amendments 

made to the labeling regulations on the 

use of flags, the use of disparaging 

statements about competitors, and 

statements relating to guarantees. These 

changes are liberalizing in nature. The 

final rule also includes minor 

clarifications in § 7.235, consistent with 

the proposed rule, to clarify that the 

advertising regulations do not require 

use of an approved label where a malt 

beverage container is not subject to the 

COLA requirements under part 7. 

TTB is adding a paragraph to § 5.235 

and § 7.235 stating that the use of the 

term ‘‘organic’’ in advertising must 

comply with the United States 

Department of Agriculture’s National 

Organic Program rules. This is 

consistent with the current advertising 

regulations and is consistent with the 

finalized labeling regulations. 

In §§ 5.234 and 7.234, the provision 

on the legibility of mandatory 

information is revised to include 

clarifying changes from the proposed 

rule. 

The advertising regulations have also 

been amended to modify the definition 

of ‘‘Advertisement or Advertising’’ to 

include internet and social media 

advertisements, as proposed in Notice 

No. 176. The inclusion of internet and 

social media advertisements in the 

definition of ‘‘advertisement’’ reflects 

current TTB policy, and is simply a 

clarifying change in the part 5 and part 

7 regulations. See TTB Industry Circular 

2013–1, ‘‘Use of Social Media in the 

Advertising of Alcohol Beverages,’’ 

dated May 13, 2013, in which TTB 

noted that the ‘‘regulations list specific 

types of advertising, including ‘any 

other media.’ TTB interprets ‘any other 

media’ in the regulations to apply to 

advertising in all types of media, 

including types of media that did not 

exist when the regulations were 

originally adopted.’’ The Industry 

Circular clarifies that internet 

advertising and social media 

advertising, among other types of 

advertising, are subject to the 

requirements of the FAA Act and its 

implementing regulations. That policy 

will continue to apply to advertisements 

of wine, distilled spirits, and malt 

beverages. At this time, TTB is not 

addressing the more substantive 

comments that were received with 

regard to ways in which the TTB 

regulations should address those issues. 

Finally, the numbering of the sections 

in the subparts on the advertising 

regulations has changed, due to the 

reorganization of the labeling 

regulations in parts 5 and 7. 

E. Impact on Public Guidance 

Documents 

The chart below describes the impact 

of this final rule on rulings, industry 

circulars, and other public guidance 

documents issued over the years by TTB 

and its various predecessor agencies. 

The following public guidance 

documents will be superseded by the 

publication of a final rule: 

Document No. Subject Incorporated into proposed sections at: 

Cross Cutting 

Industry Circular 1963–23 ............................................ Use of Disparaging Themes or References in Alcoholic Beverage Advertising is Prohibited.Not incorporated. 

Distilled Spirits 

Revenue Ruling 54–592 .............................................. Relabeling Tax Paid Distilled Spirits ........................... § 5.42. 

Revenue Ruling 55–399 .............................................. Straight Whiskey ......................................................... Not Incorporated. 

Revenue Ruling 61–15 ................................................ Labeling of Scotch Whisky .......................................... § 5.90(b). 

Revenue Ruling 61–25 ................................................ Distilled Spirits Labeling .............................................. §§ 5.141 and 5.143. 

Revenue Ruling 61–71 ................................................ Use of the Word Straight in Labeling and Advertising 

of Liqueurs or Cordials.

§ 5.150(a). 

Revenue Ruling 62–224 .............................................. Relabeling by Wholesale Liquor Dealer ..................... § 5.42. 

Revenue Ruling 68–502 .............................................. Light Whisky from Kentucky ....................................... § 5.66(f)(3). 

Revenue Ruling 71–535 .............................................. Labels on Imported Alcohol Beverages ...................... § 5.68. 

ATF Ruling 79–9 .......................................................... Distilled Spirits Labels ................................................. § 5.87. 

ATF Ruling 88–1 .......................................................... Alcohol Content on Labels and in Advertisements of 

Distilled Spirits.

§ 5.65. 

ATF Ruling 93–3 .......................................................... Age Statements on Grappa Brandy ............................ § 5.74(c). 

ATF Ruling 94–5 .......................................................... Geographical Names .................................................. § 5.143 and § 5.145(c)(2)–(5). 

ATF Ruling 2001–2 ...................................................... Country of Origin Statements on Distilled Spirits Labels.§ 5.69. 

Industry Circular 1971–7 .............................................. Protection of Names of Bourbon Whiskey and Certain French Brandies.§§ 5.143 and 5.145. 

Industry Circular 76–28 ................................................ Production of New Charred Barrels using Used 

Heads.

Not Incorporated. 

Malt Beverages 

Revenue Ruling 71–535 .............................................. Labels on Imported Alcohol Beverages ...................... § 7.68. 

ATF Ruling 76–13 ........................................................ Malt Beverages of Less Than 1⁄2 of 1% Alcohol by 

Volume Subject to FAA Act.

§ 7.145. 

ATF Ruling 94–3 (superseded only with respect to 

the provisions related to part 7. The part 25 provisions remain in effect.).

Ice Beer ....................................................................... § 7.143. 


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Document No. Subject Incorporated into proposed sections at: 

ATF Procedure 98–1 ................................................... Labeling of Imported Malt Beverages Bottled or 

Packed in the United States, and Labeling of 

Blends of Imported and Domestic Malt Beverages 

Bottled or Packed in the United States.

§§ 7.67 and 7.69. 

TTB Ruling 2013–1 ...................................................... Malt Beverages Sold Exclusively in Intrastate Commerce.§§ 7.4 and 7.21. 

III. Derivation Tables for Finalized 

Parts 5 and 7 

27 CFR PART 5 

Requirements of 

new section: 

Are derived from current 

section: 

5.0 ...................... 5.1. 

Subpart A—General Provisions 

5.1 ...................... 5.11. 

5.2 ...................... 5.1. 

5.3 ...................... New. 

5.4 ...................... [reserved]. 

5.5 ...................... [reserved]. 

5.6 ...................... [reserved]. 

5.7 ...................... New. 

5.8 ...................... 5.1. 

5.9 ...................... [reserved]. 

5.10 .................... 5.2. 

5.11 .................... 5.3. 

5.12 .................... 5.4. 

Subpart B—Certificates of Label Approval 

and Certificates of Exemption from 

Label Approval 

5.21 .................... 5.31(a). 

5.22 .................... 5.55. 

5.23 .................... 5.55(b). 

5.24 .................... 5.51(a) and 5.55(c). 

5.25 .................... 5.51. 

5.27 .................... 5.51 and 5.55. 

5.28 .................... 5.33(g). 

5.29 .................... 5.57. 

5.30 .................... 5.52. 

Subpart C—Alteration of Labels, Relabeling and Adding Information to Containers 

5.41 .................... 5.31(b). 

5.42 .................... 5.31(b). 

5.43 .................... New. 

5.44 .................... 5.31(b). 

Subpart D—Label Standards 

5.51 .................... 5.33(e). 

5.52 .................... 5.33(a). 

5.53 .................... 5.33(b)(5) and (6). 

5.54 .................... New. 

5.55 .................... 5.33(c). 

5.56 .................... 5.33(f). 

Subpart E—Mandatory Label Information 

5.61 .................... New. 

5.62 .................... 5.41. 

5.63 .................... 5.32. 

5.64 .................... 5.34. 

5.65 .................... 5.37. 

5.66 .................... 5.36. 

27 CFR PART 5—Continued 

Requirements of 

new section: 

Are derived from current 

section: 

5.67 .................... 5.36. 

5.68 .................... 5.36. 

5.69 .................... 5.36(e). 

5.70 .................... 5.38. 

5.71 .................... 5.39(a). 

5.72 .................... 5.39(b). 

5.73 .................... 5.39(c). 

5.74 .................... 5.40. 

Subpart F—Restricted Labeling Statements 

5.81 .................... New. 

5.82 .................... 5.32a. 

5.83 .................... 5.32b. 

5.84 .................... 5.71. 

5.85 .................... [reserved]. 

5.86 .................... [reserved]. 

5.87 .................... New. 

5.88 .................... 5.42(b)(4). 

5.89 .................... 5.42(b)(6). 

5.90 .................... 5.22(k)(4). 

5.91 .................... 5.42(b)(5). 

Subpart G—Prohibited Labeling Practices 

5.101 .................. New. 

5.102 .................. 5.42(a)(1). 

5.103 .................. 5.42(a)(3). 

Subpart H—Labeling Practices That are 

Prohibited if They are Misleading 

5.121 .................. New. 

5.122 .................. 5.42(a)(1). 

5.123 .................. 5.42(a)(5). 

5.124 .................. 5.42(a)(2). 

5.125 .................. 5.42(a)(4). 

5.126 .................. 5.42(b)(7). 

5.127 .................. [reserved]. 

5.128 .................. [reserved]. 

5.129 .................. 5.42(b)(8). 

5.130 .................. 5.42(a)(6). 

Subpart I—The Standards of Identity for 

Distilled Spirits 

5.141 .................. 5.22. 

5.142 .................. 5.22(a). 

5.143 .................. 5.22(b) and 5.35(c). 

5.144 .................. 5.22(c). 

5.145 .................. 5.22(d). 

5.146 .................. 5.22(e). 

5.147 .................. 5.22(f). 

5.148 .................. 5.22(g). 

5.149 .................. [reserved]. 

5.150 .................. 5.22(h). 

5.151 .................. 5.22(i). 

5.152 .................. 5.22(j). 

5.153 .................. New. 

27 CFR PART 5—Continued 

Requirements of 

new section: 

Are derived from current 

section: 

5.154 .................. 5.22(k) and (l). 

5.155 .................. 5.23. 

5.156 .................. 5.35(a) and (b). 

5.157–5.165 ....... [reserved]. 

5.166 .................. New. 

Subpart J—Formulas 

5.191 .................. 5.25. 

5.192 .................. 5.26. 

5.193 .................. 5.27. 

5.194 .................. 5.28. 

Subpart K—Distilled spirits containers and 

Authorized Container Sizes 

5.201 .................. 5.45. 

5.202 .................. 5.46. 

5.203 .................. 5.47a. 

5.204 .................. [reserved]. 

5.205 .................. New. 

Subpart L—[Reserved] 

Subpart M—Penalties and Compromise of 

Liability 

5.221 .................. New. 

5.222 .................. New. 

5.223 .................. New. 

Subpart N—Advertising of Distilled Spirits 

5.231 .................. 5.61. 

5.232 .................. 5.62. 

5.233 .................. 5.63. 

5.234 .................. 5.64. 

5.235 .................. 5.65. 

5.236 .................. 5.66. 

Subpart O—Paperwork Reduction Act 

5.241 .................. New. 

27 CFR PART 7 

Requirements of 

new section: 

Are derived from current 

section: 

7.0 ...................... 7.1. 

Subpart A—General Provisions 

7.1 ...................... 7.10. 

7.2 ...................... 7.2. 

7.3 ...................... 7.20(b) and (c). 

7.4 ...................... 7.20(a) and New. 

7.5 ...................... 7.11. 

7.6 ...................... 7.6. 


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27 CFR PART 7—Continued 

Requirements of 

new section: 

Are derived from current 

section: 

7.7 ...................... New. 

7.8 ...................... 7.60. 

7.9 ...................... [reserved]. 

7.10 .................... 7.4. 

7.11 .................... 7.3. 

7.12 .................... 7.5. 

Subpart B—Certificates of Label Approval 

7.21 .................... 7.20(b), and 7.40–7.42. 

7.22 .................... 7.40 and 7.41. 

7.23 .................... [reserved]. 

7.24 .................... 7.30 and 7.31(b). 

7.25 .................... 7.30 and 7.31. 

7.27 .................... 7.42. 

7.28 .................... 7.31(d). 

7.29 .................... 7.43. 

Subpart C—Alteration of Labels, Relabeling, and Adding Information to 

Containers 

7.41 .................... 7.20(c)(1). 

7.42 .................... 7.20(c)(2). 

7.43 .................... New. 

7.44 .................... New. 

Subpart D—Label Standards 

7.51 .................... 7.28(d). 

7.52 .................... 7.28(a). 

7.53 .................... 7.28(b). 

7.54 .................... New. 

7.55 .................... 7.28(c). 

7.56 .................... 7.28(e). 

Subpart E—Mandatory Label Information 

7.61 .................... New. 

7.62 .................... 7.21(b) and 7.29(h). 

7.63 .................... 7.22. 

7.64 .................... 7.23. 

7.65 .................... 7.71. 

7.66 .................... 7.25(a) and (d). 

7.67 .................... 7.25(b). 

7.68 .................... 7.25(b). 

7.69 .................... 7.25(c). 

7.70 .................... 7.27. 

Subpart F—Restricted Labeling Statements 

7.81 .................... New. 

7.82 .................... 7.22a. 

7.83 .................... 7.22b. 

7.84 .................... 7.81. 

7.85 .................... [reserved]. 

7.86 .................... [reserved]. 

7.87 .................... [reserved]. 

Subpart G—Prohibited Labeling Practices 

7.101 .................. New. 

7.102 .................. 7.29(a)(1). 

7.103 .................. 7.29(a)(3). 

Subpart H—Labeling Practices That are 

Prohibited if They are Misleading 

7.121 .................. New. 

7.122 .................. 7.29(a)(1) and New. 

7.123 .................. 7.29(a)(5). 

27 CFR PART 7—Continued 

Requirements of 

new section: 

Are derived from current 

section: 

7.124 .................. 7.29(a)(2). 

7.125 .................. 7.29(a)(4). 

7.126 .................. 7.29(d). 

7.127 .................. [reserved]. 

7.128 .................. 7.29(a)(7) and New. 

7.129 .................. 7.29(e). 

7.130 .................. 7.29(a)(6). 

7.131 .................. [reserved]. 

7.132 .................. [reserved]. 

Subpart I—Classes and Types of Malt 

Beverages 

7.141 .................. 7.24(a). 

7.142 .................. 7.24(e). 

7.143 .................. 7.24(b) and (c) and New. 

7.144 .................. New. 

7.145 .................. 7.24(d). 

7.146 .................. 7.24(g), (f), and (h). 

7.147 .................. New. 

Subparts J–L—[Reserved] 

Subpart M—Penalties and Compromise of 

Liability 

7.221 .................. New. 

7.222 .................. New. 

7.223 .................. New. 

Subpart N—Advertising of Malt Beverages 

7.231 .................. 7.50. 

7.232 .................. 7.51. 

7.233 .................. 7.52. 

7.234 .................. 7.53. 

7.235 .................. 7.54. 

7.236 .................. 7.55. 

Subpart O—Paperwork Reduction Act 

7.241 .................. New. 

IV. Regulatory Analyses and Notices 

A. Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et. seq.), 

TTB certifies that this final rule will not 

have a significant economic impact on 

a substantial number of small entities. 

While TTB has determined that the 

majority of businesses subject to this 

rule are small businesses, the regulatory 

amendments in this final rule will not 

have a significant impact on those small 

entities as it will not impose, or 

otherwise cause, an increase in 

reporting, recordkeeping, or other 

compliance burdens on regulated 

industry members. As finalized, this 

rule will not require industry members 

to make changes to labels or 

advertisements. The following analysis 

provides the factual basis for TTB’s 

certification under 5 U.S.C. 605. 

1. Background 

In Notice No. 176, published on 

November 26, 2018, TTB proposed a 

recodification of the labeling and 

advertising regulations pertaining to 

wine, distilled spirits, and malt 

beverages. The purpose was to clarify 

and update these regulations to make 

them easier to understand and to 

incorporate agency policies. TTB 

determined that the majority of 

businesses subject to the proposed rule 

were small businesses (see Notice No. 

176 for more information on this 

determination). Accordingly, TTB 

sought comments on the impact of the 

proposals, and on ways in which the 

regulations could be improved. TTB 

also proposed a delayed compliance 

date to provide all regulated entities 3 

years to come into compliance with the 

proposed regulations, to minimize the 

costs associated with any label changes. 

On April 2, 2020, TTB published T.D. 

TTB–158, (85 FR 18704), which 

finalized certain proposals from Notice 

No. 176, and announced its decision not 

to move forward with certain other 

proposals. Generally, the amendments 

that TTB adopted in T.D. TTB–158 were 

well supported by commenters, could 

be implemented relatively quickly, and 

would either give more flexibility to 

industry members or help industry 

members understand existing 

requirements, while not requiring any 

current labels or advertisements to be 

changed. TTB did not incorporate the 

proposed reorganization of the 

regulations in T.D. TTB–158 because 

that final rule only addressed a subset 

of the issues raised in Notice No. 176. 

Instead, amendments to the TTB 

regulations were made within the 

framework of the existing regulations. 

In this rulemaking, TTB is finalizing 

the reorganization proposed in Notice 

No. 176 for 27 CFR parts 5 and 7. This 

includes clarifying regulatory language 

and breaking up large sections into 

smaller sections—resulting in a larger 

number of overall sections, but not a 

larger number of regulatory 

requirements. TTB is also adopting 

many proposals that include 

incorporation of current policy. This 

final rule addresses comments that TTB 

received on the proposed regulatory 

provisions for all of parts 5 and 7 by 

incorporating changes in the 

regulations, announcing that TTB will 

not move forward with some proposed 

changes, and identifying proposals or 

issues commenters raised that TTB will 

consider for future rulemaking. 


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2. Comment From SBA Chief Counsel 

for Advocacy 

As required by section 7805(f) of the 

Internal Revenue Code (26 U.S.C. 

7805(f)), TTB submitted Notice No. 176 

to the Chief Counsel for Advocacy of the 

Small Business Administration (SBA) 

for comment on the impact of these 

regulations. 

By letter dated August 6, 2019, the 

Office of Advocacy for the U.S. Small 

Business Administration (‘‘SBA Office 

of Advocacy’’) provided a comment on 

Notice No. 176. The comment stated 

that ‘‘Advocacy commends the TTB on 

its logical reorganization of the labeling 

and advertising rules and streamlining 

some of its processes.’’ However, the 

comment also indicated that in its 

discussions with small businesses in the 

alcohol beverage industry, two issues 

with the proposed rule were brought to 

its attention—the definition of an ‘‘oak 

barrel,’’ and creating a separate class 

and type for mead, a type of wine made 

from honey. The comment suggested 

that TTB revise the rule to reduce the 

impacts of the proposed definition of 

‘‘oak barrel’’ and concluded that: 

Advocacy is concerned that the agency’s 

certification that the rule will not have a 

significant economic impact on a substantial 

number of small entities lacks a factual basis. 

Advocacy suggests the agency revise the rule 

to reduce the impacts of the definition of ‘oak 

barrel’ and to establish a new class and type 

for mead or publish a supplemental initial 

regulatory flexibility analysis (IFRA) to 

propose alternatives to the rule 

In T.D. TTB–158, TTB announced it 

was not moving forward with a number 

of proposals that received comments 

raising concerns about regulatory costs 

and burdens, including the proposed 

definition of an ‘‘oak barrel.’’ The other 

issue addressed by the comment from 

the SBA Office of Advocacy dealt with 

the proposed regulations on mead. This 

final rule does not address wine labeling 

issues; thus, TTB will review SBA’s 

comment on mead, along with the other 

comments received on this issue, when 

it finalizes the rulemaking on wine 

labeling. 

Because this final rule does not 

address either of the issues raised by the 

comment from the SBA Office of 

Advocacy, there is no need to conduct 

a supplemental initial regulatory 

flexibility analysis to propose 

alternatives to the rule. 

3. Other Proposals That Will Not Be 

Adopted 

In addition to not adopting its 

proposed definition of an ‘‘oak barrel,’’ 

TTB has decided not to adopt certain 

other proposals, including the 

following: 

• A proposal to codify TTB’s current 

policy, as stated on the label application 

form, that the issuance of a COLA does 

not confer trademark protection or 

relieve the certificate holder from 

liability for violations of the FAA Act, 

the IRC, ABLA, or related regulations, 

and that products covered by a COLA 

may still be mislabeled if the label 

contains statements that are false or 

misleading when applied to the 

beverage in the container. 

• A proposed amendment that would 

clarify and somewhat expand existing 

requirements with regard to placing 

certain label information on closed 

‘‘packaging’’ of wine, distilled spirits, 

and malt beverage containers. 

• A proposal to codify TTB’s current 

policy with respect to the allowed use 

of certain non-misleading labeling 

claims about environmental and 

sustainability practices. 

• A proposal to establish a 5-year 

retention period for required records 

and to codify TTB’s current 

substantiation requirements. 

• A proposed amendment that would 

clarify and expand current requirements 

that certain whisky products distilled in 

the United States must include the State 

of distillation on the label, by providing 

that a bottling address within the State 

does not suffice unless it includes a 

representation as to distillation. TTB is 

not moving forward with this proposal 

because it might require labeling 

changes, but will instead clarify current 

requirements. 

• A proposed amendment that would 

modify the standard of identity for 

whisky to provide for ‘‘white whisky’’ 

and ‘‘unaged whisky.’’ 

• A proposal that would address 

‘‘aggregate’’ standards of fill in a manner 

that is based on current policy. 

• A proposed amendment that would 

increase the alcohol content tolerance 

for malt beverages from 0.3 percent 

above or below the labeled alcohol 

content to 1 percent above or below. 

This final rule includes only 

amendments that TTB believes clarify 

and liberalize requirements for industry 

members and that do not conflict with 

current labels or business practices, 

while still providing adequate 

protection for consumers. An example 

of a liberalizing change is the 

amendment to the malt beverage 

regulations that allows mandatory 

information to appear on keg collars that 

are not firmly affixed to the keg. 

Because the final rule will not require 

changes to labels, advertisements, or 

business practices, no delayed 

compliance date is necessary, and the 

final rule will take effect 30 days from 

publication in the Federal Register. 

The preamble of Notice No. 176 

explains in detail the reasons why the 

proposals that have been adopted in this 

final rule are either clarifying or 

liberalizing. Examples of clarifying 

changes include: 

• Adding examples in the regulations 

of how certain requirements may be 

satisfied; 

• Adding to the regulations guidance 

that had previously been provided in 

rulings, Industry Circulars, or other 

documents separate from the 

regulations; 

• Addressing questions the public 

frequently asks TTB; 

• Making definitions, organization, 

numbering of sections, and phrasing of 

requirements within the regulations 

consistent across 27 CFR parts 5 and 7 

to the extent possible; 

• Breaking large subparts and large 

sections into smaller subparts and 

smaller sections to increase readability; 

• Providing more cross references in 

the regulations to relevant regulations 

and statutes; 

• Making it explicit that mandatory 

information may not be covered or 

obscured in whole or in part; 

• Codifying in the regulations the 

current requirement that distilled spirits 

covered by a certificate of exemption 

must bear a labeling statement that the 

product is ‘‘For sale in [name of State] 

only’’; 

• Codifying current TTB guidance 

with respect to the use of a COLA by an 

importer other than the permittee to 

whom the COLA was issued; 

• Codifying current policy with 

respect to the required name and 

address statement on labels for distilled 

spirits and malt beverages that have 

been subject to certain production 

activities after importation in bulk; 

• Codifying current policy that allows 

truthful and non-misleading 

comparisons on labels and in 

advertisements without violating the 

prohibition against ‘‘disparaging’’ 

statements; 

• Providing that the prohibition 

against the use of flags and other 

symbols of a government applies 

whenever the label may create a 

misleading impression that the product 

is endorsed by, or otherwise affiliated 

with, that government; and 

• Specifying how the FAA Act 

applies to the labeling of malt beverages 

under the penultimate paragraph of 27 

U.S.C. 205(f). 

Some examples of liberalizing 

measures that TTB is finalizing in this 

document include: 

• Allowing greater flexibility in the 

placement of mandatory information on 

labels by eliminating the requirement 


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that mandatory information appear on 

the ‘‘brand label;’’ 

• Allowing wholesalers to relabel 

distilled spirits when necessary and 

when approved by TTB; 

• Allowing the use of designations in 

accordance with trade understanding, 

rather than statements of composition, 

in the labeling of malt beverages that are 

flavored or fermented with ingredients 

that TTB has determined are generally 

recognized as traditional ingredients in 

the production of a fermented beverage 

designated as ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ 

‘‘stout,’’ ‘‘lager,’’ or ‘‘malt liquor’’; and 

• Allowing certain mandatory 

information to appear on the keg collar 

or tap cover of malt beverage kegs with 

a capacity of 5.16 gallons or more, 

subject to certain requirements. 

In summary, while the entities 

affected by the amendments in this final 

rule include a substantial number of 

small entities, the final rule does not 

require labeling or advertising changes 

by these small businesses, but instead 

offers industry members additional 

flexibility in complying with the 

regulations. Thus, TTB certifies that this 

final rule will not have a significant 

economic impact on a substantial 

number of small entities. 

B. Executive Order 12866 

It has been determined that this final 

rule is not a significant regulatory action 

as defined in Executive Order 12866 of 

September 30, 1993. Therefore, a 

regulatory assessment is not necessary. 

C. Paperwork Reduction Act 

The Office of Management and Budget 

(OMB) has previously reviewed and 

approved the eight collections of 

information in the regulations contained 

in this final rule in accordance with the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3507) and assigned control 

numbers 1513–0020, 1513–0064, 1513– 

0084, 1513–0085, 1513–0087, 1513– 

0111, 1513–0121, and 1513–0122. An 

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information unless it 

displays a valid control number 

assigned by OMB. 

This final rule includes only 

amendments that TTB believes offer 

clarifications and liberalizations of the 

TTB regulations, including their 

information collection requirements. 

The amendments adopted in this final 

rule are well supported by commenters, 

can be implemented relatively quickly, 

and will give more flexibility to 

industry members or help industry 

members understand existing regulatory 

and information collection 

requirements, but will not require 

industry members to change any current 

alcohol beverage label or advertisement. 

The preamble discussion contained in 

this final rule document explains in 

detail the reasons why the proposals 

adopted in this final rule are either 

clarifying or liberalizing. 

The specific regulatory sections in 

this final rule that contain approved 

collections of information are found in 

part 5 at §§ 5.11, 5.21, 5.22, 5.23, 5.24, 

5.25, 5.27, 5.28, 5.29, 5.30, 5.62, 5.63, 

5.82, 5.83, 5.84, 5.87, 5.88, 5.89, 5.90, 

5.91, 5.192, 5.193, 5.194, 5.203, 5.205, 

and 5.233, and in part 7 at §§ 7.11, 7.21, 

7.22, 7.24, 7.25, 7.27, 7.28, 7.29, 7.62, 

7.63, 7.66, 7.67, 7.81, 7.82, 7.83, 7.84, 

and 7.233. 

Regarding OMB control number 

1513–0020, the regulations in §§ 5.21, 

5.22, 5.23, 5.24, 5.25, 5.29, 5.205, 7.21, 

7.22, 7.24, 7.25, 7.27, and 7.29 set forth 

information collection requirements 

related to submission of applications for 

certification of, or exemption from, label 

or bottle approval. These regulations do 

not add any new requirements or 

respondent burden to this previouslyapproved collection as they merely 

recodify and clarify existing TTB 

regulations regarding the submission of 

such certificate of label approval 

(COLA) applications, including those 

for personalized labels. 

Regarding OMB control number 

1513–0064, which is related to importer 

records and reports, the regulations in 

§§ 5.24 and 7.24 state, respectively, that 

distilled spirits and malt beverages 

imported in containers are not eligible 

for release from customs custody for 

consumption unless the importer 

removing the products has obtained a 

COLA for the products in question, and 

is able to provide it (either 

electronically or on paper) upon 

request, which is consistent with TTB’s 

current regulations regarding such 

imports. In addition, § 5.30 merely 

makes clarifications to the existing 

regulations concerning certificates of 

age and origin for distilled spirits and 

do not affect the information 

collection’s requirements or estimated 

burden. 

OMB control number 1513–0084 

concerns the labeling of sulfites in 

alcohol beverages. The current TTB 

requirements that alcohol beverage 

labels disclose the presence of sulfites 

(defined as 10 or more parts per million 

of sulfur dioxide or other sulfating agent 

measured as total sulfur dioxide) are 

recodified in § 5.63(c)(7) for distilled 

spirits and in § 7.63(b)(3) for malt 

beverages. 

OMB control number 1513–0085 

concerns the use of the principal place 

of business of a brewer and place of 

production coding in lieu of the actual 

place of bottling on malt beverage 

labels. The existing requirements for 

such labeling are recodified for 

domestic beverages at § 7.66 and for 

imported beverages at § 7.68. As such, 

there are no changes to this information 

collection’s estimated burden. 

Information collection requirements 

approved under OMB control number 

1513–0087, which concerns Federal 

Alcohol Administration (FAA) Actbased labeling and advertising 

information requirements, are contained 

in §§ 5.62, 5.63, 5.84, 5.87, 5.88, 5.89, 

5.90, 5.91, 5.233, 7.62, 7.63, 7.81, 7.84, 

and 7.233. None of these regulatory 

amendments require changes to any 

alcohol beverage label or advertisement, 

or increase the requirements or 

estimated burden associated with OMB 

No. 1513–0087. Rather, these 

regulations recodify existing TTB label 

and advertising information 

requirements or allow for additional 

options in displaying or providing the 

required information. For example, 

§ 5.63, which concerns mandatory label 

information, contains liberalizing 

changes that will not require any 

changes to labels, but will allow further 

flexibility in the placement of labeling 

information on distilled spirits 

containers; while §§ 5.233 and 7.233 

will allow alcohol beverage advertisers 

optional ways to provide contact 

information in their advertisements, 

such as by displaying a telephone 

number, website, or email address in 

lieu of the advertiser’s city and State. 

Applications to request access TTB’s 

COLA Online system are covered by 

OMB control number 1513–0111, and 

TTB’s existing requirements to file such 

applications are recodified in §§ 5.11 

and 7.11. 

Regarding OMB control number 

1513–0121, which covers the label 

disclosures of major food allergens and 

petitions from exemption from such 

labeling, §§ 5.82, 5.83, 7.82, and 7.83 

merely recodify TTB’s existing 

regulations regarding those matters, and 

there are no changes to this collection’s 

requirements or burden estimate. 

OMB No. 1513–0122, which covers 

submission of formulas and processes 

for domestic and imported alcohol 

beverages, is found in §§ 5.28 and 7.28. 

There are no changes to this information 

collection’s existing requirements or 

estimated burden. 

V. Drafting Information 

Christopher M. Thiemann, Kara T. 

Fontaine, and Curtis Eilers of the 

Regulations and Rulings Division 

drafted this document with the 

assistance of other employees of the 


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Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 7579 

Alcohol and Tobacco Tax and Trade 

Bureau. 

List of Subjects 

27 CFR Part 5 

Advertising, Alcohol and alcoholic 

beverages, Customs duties and 

inspection, Food additives, Grains, 

Imports, International agreements, 

Labeling, Liquors, Packaging and 

containers, Reporting and recordkeeping 

requirements, Trade practices. 

27 CFR Part 7 

Advertising, Alcohol and alcoholic 

beverages, Beer, Customs duties and 

inspection, Food additives, Imports, 

Labeling, Packaging and containers, 

Reporting and recordkeeping 

requirements, Trade practices. 

Regulatory Amendments 

For the reasons discussed in the 

preamble, TTB amends 27 CFR, chapter 

I, as follows: 

■ 1. Revise part 5 to read as follows: 

PART 5—LABELING AND 

ADVERTISING OF DISTILLED SPIRITS 

Sec. 

5.0 Scope. 

Subpart A—General Provisions 

5.1 Definitions. 

5.2 Territorial extent. 

5.3 General requirements and prohibitions 

under the FAA Act. 

5.4–5.6 [Reserved] 

5.7 Other TTB labeling regulations that 

apply to distilled spirits. 

5.8 Distilled spirits for export. 

5.9 [Reserved] 

5.10 Other related regulations. 

5.11 Forms. 

5.12 Delegations of the Administrator. 

Subpart B—Certificates of Label Approval 

and Certificates of Exemption From Label 

Approval 

Requirements for Distilled Spirits Bottled in 

the United States 

5.21 Requirement for certificates of label 

approval (COLAs) for distilled spirits 

bottled in the United States. 

5.22 Rules regarding certificates of label 

approval (COLAs) for distilled spirits 

bottled in the United States. 

5.23 Application for exemption from label 

approval for distilled spirits bottled in 

the United States. 

Requirements for Distilled Spirits Imported 

in Containers 

5.24 Certificates of label approval (COLAs) 

for distilled spirits imported in 

containers. 

5.25 Rules regarding certificates of label 

approval (COLAs) for distilled spirits 

imported in containers. 

Administrative Rules 

5.27 Presenting certificates of label 

approval (COLAs) to Government 

officials. 

5.28 Formulas, samples, and 

documentation. 

5.29 Personalized labels. 

5.30 Certificates of age and origin for 

imported spirits. 

Subpart C—Alteration of Labels, Relabeling, 

and Adding Information to Containers 

5.41 Alteration of labels. 

5.42 Authorized relabeling activities by 

distillers and importers. 

5.43 Relabeling activities that require 

separate written authorization from TTB. 

5.44 Adding a label or other information to 

a container that identifies the 

wholesaler, retailer, or consumer. 

Subpart D—Label Standards 

5.51 Requirement for firmly affixed labels. 

5.52 Legibility and other requirements for 

mandatory information on labels. 

5.53 Minimum type size of mandatory 

information. 

5.54 Visibility of mandatory information. 

5.55 Language requirements. 

5.56 Additional information. 

Subpart E—Mandatory Label Information 

5.61 What constitutes a label for purposes 

of mandatory information. 

5.62 Packaging (cartons, coverings, and 

cases). 

5.63 Mandatory label information. 

5.64 Brand name. 

5.65 Alcohol content. 

5.66 Name and address for domestically 

bottled distilled spirits that were wholly 

made in the United States. 

5.67 Name and address for domestically 

bottled distilled spirits that were bottled 

after importation. 

5.68 Name and address for distilled spirits 

that were imported in a container. 

5.69 Country of origin. 

5.70 Net contents. 

5.71 Neutral spirits and name of 

commodity. 

5.72 Coloring materials. 

5.73 Treatment of whisky or brandy with 

wood. 

5.74 Statements of age, storage, and 

percentage. 

Subpart F—Restricted Labeling Statements 

5.81 General. 

Food Allergen Labeling 

5.82 Voluntary disclosure of major food 

allergens. 

5.83 Petitions for exemption from major 

food allergen labeling. 

Production Claims 

5.84 Use of the term ‘‘organic.’’ 

5.85 [Reserved] 

5.86 [Reserved] 

Other Label Terms 

5.87 ‘‘Barrel Proof’’ and similar terms. 

5.88 Bottled in bond. 

5.89 Multiple distillation claims. 

5.90 Terms related to Scotland. 

5.91 Use of the term ‘‘pure.’’ 

Subpart G—Prohibited Labeling Practices 

5.101 General. 

5.102 False or untrue statements. 

5.103 Obscene or indecent depictions. 

Subpart H—Labeling Practices That Are 

Prohibited If They Are Misleading 

5.121 General. 

5.122 Misleading statements or 

representations. 

5.123 Guarantees. 

5.124 Disparaging statements. 

5.125 Tests or analyses. 

5.126 Depictions of government symbols. 

5.127 [Reserved] 

5.128 [Reserved] 

5.129 Health-related statements. 

5.130 Appearance of endorsement. 

Subpart I—Standards of Identity for 

Distilled Spirits 

5.141 The standards of identity in general. 

5.142 Neutral spirits or alcohol. 

5.143 Whisky. 

5.144 Gin. 

5.145 Brandy. 

5.146 Blended applejack. 

5.147 Rum. 

5.148 Agave spirits. 

5.149 [Reserved]. 

5.150 Cordials and liqueurs. 

5.151 Flavored spirits. 

5.152 Imitations. 

5.153 Diluted spirits. 

5.154 Rules for geographical designations. 

5.155 Alteration of class and type. 

5.156 Distilled spirits specialty products. 

5.157–5.165 [Reserved] 

5.166 Statement of composition. 

Subpart J—Formulas 

5.191 Application. 

5.192 Formula requirements. 

5.193 Operations requiring formulas. 

5.194 Adoption of predecessor’s formulas. 

Subpart K—Standards of Fill and 

Authorized Container Sizes 

5.201 General. 

5.202 Standard liquor containers. 

5.203 Standards of fill (container sizes). 

5.204 [Reserved] 

5.205 Distinctive liquor bottle approval. 

Subpart L—[Reserved] 

5.211 [Reserved] 

5.212 [Reserved] 

Subpart M—Penalties and Compromise of 

Liability 

5.221 Criminal penalties. 

5.222 Conditions of basic permit. 

5.223 Compromise. 

Subpart N—Advertising of Distilled Spirits 

5.231 Application. 

5.232 Definitions. 

5.233 Mandatory statements. 

5.234 Legibility of mandatory information. 

5.235 Prohibited practices. 

5.236 Comparative advertising. 

Subpart O—Paperwork Reduction Act 

5.241 OMB control numbers assigned under 

the Paperwork Reduction Act. 

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

205 and 207. 


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§ 5.0 Scope. 

This part sets forth requirements that 

apply to the labeling and packaging of 

distilled spirits in containers, including 

requirements for label approval and 

rules regarding mandatory, regulated, 

and prohibited labeling statements. This 

part also sets forth requirements that 

apply to the advertising of distilled 

spirits. 

Subpart A—General Provisions 

§ 5.1 Definitions. 

When used in this part and on forms 

prescribed under this part, the following 

terms have the meaning assigned to 

them in this section, unless the terms 

appear in a context that requires a 

different meaning. Any other term 

defined in the Federal Alcohol 

Administration Act (FAA Act) and used 

in this part has the same meaning 

assigned to it by the FAA Act. 

Administrator. The Administrator, 

Alcohol and Tobacco Tax and Trade 

Bureau, Department of the Treasury. 

Advertisement or Advertising. See 

§ 5.232 for meaning of these terms as 

used in subpart N of this part. 

Age. The length of time during which, 

after distillation and before bottling, the 

distilled spirits have been stored in oak 

barrels. ‘‘Age’’ for bourbon whisky, rye 

whisky, wheat whisky, malt whisky, or 

rye malt whisky, and straight whiskies 

other than straight corn whisky, means 

the period the whisky has been stored 

in charred new oak barrels. 

American proof. See Proof. 

Appropriate TTB officer. An officer or 

employee of the Alcohol and Tobacco 

Tax and Trade Bureau (TTB) authorized 

to perform any function relating to the 

administration or enforcement of this 

part by the current version of TTB Order 

1135.5, Delegation of the 

Administrator’s Authorities in 27 CFR 

part 5, Labeling and Advertising of 

Distilled Spirits. 

Bottler. Any distiller or processor of 

distilled spirits who places distilled 

spirits in containers. 

Brand name. The name under which 

a distilled spirit or a line of distilled 

spirits is sold. 

Certificate holder. The permittee or 

brewer whose name, address, and basic 

permit number, plant registry number, 

or brewer’s notice number appears on 

an approved TTB Form 5100.31. 

Certificate of exemption from label 

approval. A certificate issued on TTB 

Form 5100.31, which authorizes the 

bottling of wine or distilled spirits, 

under the condition that the product 

will under no circumstances be sold, 

offered for sale, shipped, delivered for 

shipment, or otherwise introduced by 

the applicant, directly or indirectly, into 

interstate or foreign commerce. 

Certificate of label approval (COLA). 

A certificate issued on TTB Form 

5100.31 that authorizes the bottling of 

wine, distilled spirits, or malt beverages, 

or the removal of bottled wine, distilled 

spirits, or malt beverages from customs 

custody for introduction into commerce, 

as long as the product bears labels 

identical to the labels appearing on the 

face of the certificate, or labels with 

changes authorized by TTB on the 

certificate or otherwise (such as through 

the issuance of public guidance 

available on the TTB website at https:// 

www.ttb.gov). 

Container. Any can, bottle, box, cask, 

keg, or other closed receptacle, in any 

size or material, which is for use in the 

sale of distilled spirits at retail. See 

subpart K of this part for rules regarding 

authorized standards of fill for 

containers. 

Customs officer. An officer of U.S. 

Customs and Border Protection (CBP) or 

any agent or other person authorized by 

law to perform the duties of such an 

officer. 

Distilled spirits. Ethyl alcohol, 

hydrated oxide of ethyl, spirits of wine, 

whisky, rum, brandy, gin, and other 

distilled spirits, including all dilutions 

and mixtures thereof, for nonindustrial 

use. The term ‘‘distilled spirits’’ does 

not include mixtures containing wine, 

bottled at 48 degrees of proof (24 

percent alcohol by volume) or less, if 

the mixture contains more than 50 

percent wine on a proof gallon basis. 

The term ‘‘distilled spirits’’ also does 

not include products containing less 

than one degree of proof (0.5 percent 

alcohol by volume). 

Distilling season. The period from 

January 1 through June 30, which is the 

spring distilling season, or the period 

from July 1 through December 31, which 

is the fall distilling season. 

Distinctive or fanciful name. A 

descriptive name or phrase chosen to 

identify a distilled spirits product on 

the label. It does not include a brand 

name, class or type designation, or 

statement of composition. 

FAA Act. The Federal Alcohol 

Administration Act. 

Gallon. A U.S. gallon of 231 cubic 

inches at 60 degrees Fahrenheit. 

Grain. Includes cereal grains and the 

seeds of the pseudocereals amaranth, 

buckwheat, and quinoa. 

In bulk. In barrels or other receptacles 

having a capacity in excess of 1 wine 

gallon (3.785 liters). 

Interstate or foreign commerce. 

Commerce between any State and any 

place outside of that State or commerce 

within the District of Columbia or 

commerce between points within the 

same State but through any place 

outside of that State. 

Liter or litre. A metric unit of capacity 

equal to 1,000 cubic centimeters or 

1,000 milliliters (mL) of distilled spirits 

at 15.56 degrees Celsius (60 degrees 

Fahrenheit), and equivalent to 33.814 

U.S. fluid ounces. 

Net contents. The amount, by volume, 

of distilled spirits held in a container. 

Permittee. Any person holding a basic 

permit under the FAA Act. 

Person. Any individual, corporation, 

partnership, association, joint-stock 

company, business trust, limited 

liability company, or other form of 

business enterprise, including a 

receiver, trustee, or liquidating agent 

and including an officer or employee of 

any agency of a State or political 

subdivision of a State. 

Produced at or distilled at. When 

used with reference to specific degrees 

of proof of a distilled spirits product, 

the phrases ‘‘produced at’’ and 

‘‘distilled at’’ mean the composite proof 

of the distilled spirits after completion 

of distillation and before reduction in 

proof, if any. 

Proof. The ethyl alcohol content of a 

liquid at 60 degrees Fahrenheit, stated 

as twice the percentage of ethyl alcohol 

by volume. 

Proof gallon. A gallon of liquid at 60 

degrees Fahrenheit that contains 50 

percent by volume of ethyl alcohol 

having a specific gravity of 0.7939 at 60 

degrees Fahrenheit, referred to water at 

60 degrees Fahrenheit as unity, or the 

alcoholic equivalent thereof. 

Responsible advertiser. The permittee 

responsible for the publication or 

broadcast of an advertisement. 

Spirits. See Distilled spirits. 

State. One of the 50 States of the 

United States, the District of Columbia, 

or the Commonwealth of Puerto Rico. 

TTB. The Alcohol and Tobacco Tax 

and Trade Bureau of the Department of 

the Treasury. 

United States (U.S.). The 50 States, 

the District of Columbia, and the 

Commonwealth of Puerto Rico. 

§ 5.2 Territorial extent. 

The provisions of this part apply to 

the 50 States, the District of Columbia, 

and the Commonwealth of Puerto Rico. 

§ 5.3 General requirements and 

prohibitions under the FAA Act. 

(a) Certificates of label approval 

(COLAs). Subject to the requirements 

and exceptions set forth in the 

regulations in subpart B of this part, any 

bottler of distilled spirits, and any 

person who removes distilled spirits in 

containers from customs custody for 


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Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 7581 

sale or any other commercial purpose, is 

required to first obtain from TTB a 

COLA covering the label(s) on each 

container. 

(b) Alteration, mutilation, destruction, 

obliteration, or removal of labels. 

Subject to the requirements and 

exceptions set forth in the regulations in 

subpart C of this part, it is unlawful to 

alter, mutilate, destroy, obliterate, or 

remove labels on distilled spirits 

containers. This prohibition applies to 

any person, including retailers, holding 

distilled spirits for sale in interstate or 

foreign commerce or any person holding 

distilled spirits for sale after shipment 

in interstate or foreign commerce. 

(c) Labeling requirements for distilled 

spirits. It is unlawful for any person 

engaged in business as a distiller, 

rectifier (processor), importer, 

wholesaler, bottler, or warehouseman 

and bottler, directly or indirectly, or 

through an affiliate, to sell or ship, or 

deliver for sale or shipment, or 

otherwise introduce or receive in 

interstate or foreign commerce, or 

remove from customs custody, any 

distilled spirits in containers unless 

such containers are marked, branded, 

labeled, and packaged in conformity 

with the regulations in this part. 

(d) Labeled in accordance with this 

part. In order to be labeled in 

accordance with the regulations in this 

part, a container of distilled spirits must 

be in compliance with the following 

requirements: 

(1) It must bear one or more label(s) 

meeting the standards for ‘‘labels’’ set 

forth in subpart D of this part; 

(2) One or more of the labels on the 

container must include the mandatory 

information set forth in subpart E of this 

part; 

(3) Claims on any label, container, or 

packaging (as defined in § 5.81) must 

comply with the rules for restricted 

label statements, as applicable, set forth 

in subpart F of this part; 

(4) Statements or any other 

representations on any label, container, 

or packaging (as defined in §§ 5.101 and 

5.121) may not violate the regulations in 

subparts G and H of this part regarding 

certain practices on labeling of distilled 

spirits; and 

(5) The class and type designation on 

any label, as well as any designation 

appearing on containers or packaging, 

must comply with the standards of 

identity set forth in subpart I of this 

part. 

(e) Packaged in accordance with this 

part. In order to be packaged in 

accordance with the regulations in this 

part, the distilled spirits must be bottled 

in authorized standards of fill in 

containers that meet the requirements of 

subpart K of this part. 

§§ 5.4–5.6 [Reserved] 

§ 5.7 Other TTB labeling regulations that 

apply to distilled spirits. 

In addition to the regulations in this 

part, distilled spirits must also comply 

with the following TTB labeling 

regulations: 

(a) Health warning statement. 

Alcoholic beverages, including distilled 

spirits, that contain at least 0.5 percent 

alcohol by volume, must be labeled with 

a health warning statement, in 

accordance with the Alcoholic Beverage 

Labeling Act of 1988 (ABLA). The 

regulations implementing the ABLA are 

contained in 27 CFR part 16. 

(b) Internal Revenue Code 

requirements. The labeling and marking 

requirements for distilled spirits under 

the Internal Revenue Code are found in 

27 CFR part 19, subpart T (for domestic 

products) and 27 CFR part 27, subpart 

E (for imported products). 

§ 5.8 Distilled spirits for export. 

The regulations in this part shall not 

apply to distilled spirits exported in 

bond. 

§ 5.9 [Reserved] 

§ 5.10 Other related regulations. 

(a) TTB regulations. Other TTB 

regulations that relate to distilled spirits 

are listed in paragraphs (a)(1) through 

(8) of this section: 

(1) 27 CFR part 1—Basic Permit 

Requirements under the Federal 

Alcohol Administration Act, 

Nonindustrial Use of Distilled Spirits 

and Wine, Bulk Sales and Bottling of 

Distilled Spirits; 

(2) 27 CFR part 13—Labeling 

Proceedings; 

(3) 27 CFR part 16—Alcoholic 

Beverage Health Warning Statement; 

(4) 27 CFR part 19—Distilled Spirits 

Plants; 

(5) 27 CFR Part 26—Liquors and 

Articles from Puerto Rico and the Virgin 

Islands; 

(6) 27 CFR Part 27—Importation of 

Distilled Spirits, Wines, and Beer; 

(7) 27 CFR Part 28—Exportation of 

Alcohol; and 

(8) 27 CFR Part 71—Rules of Practice 

in Permit Proceedings. 

(b) Other Federal Regulations. The 

regulations listed in paragraphs (b)(1) 

through (8) of this section issued by 

other Federal agencies also may apply: 

(1) 7 CFR Part 205—National Organic 

Program; 

(2) 19 CFR Part 11—Packing and 

Stamping; Marking; 

(3) 19 CFR Part 102—Rules of Origin; 

(4) 19 CFR Part 134—Country of 

Origin Marking; 

(5) 21 CFR Part 1—General 

Enforcement Regulations, Subpart H, 

Registration of Food Facilities, and 

Subpart I, Prior Notice of Imported 

Food; 

(6) 21 CFR Parts 70–82, which pertain 

to food and color additives; 

(7) 21 CFR Part 110—Current Good 

Manufacturing Practice in 

Manufacturing, Packing, or Holding 

Human Food; and 

(8) 21 CFR Parts 170–189, which 

pertain to food additives and secondary 

direct food additives. 

§ 5.11 Forms. 

(a) General. TTB prescribes and 

makes available all forms required by 

this part. Any person completing a form 

must provide all of the information 

required by each form as indicated by 

the headings on the form and the 

instructions for the form. Each form 

must be filed in accordance with this 

part and the instructions for the form. 

(b) Electronically filing forms. The 

forms required by this part can be filed 

electronically by using TTB’s online 

filing systems: COLAs Online and 

Formulas Online. Anyone who intends 

to use one of these online filing systems 

must first register to use the system by 

accessing the TTB website at https://

www.ttb.gov. 

(c) Obtaining paper forms. Forms 

required by this part are available for 

printing through the TTB website 

(https://www.ttb.gov) or by mailing a 

request to the Alcohol and Tobacco Tax 

and Trade Bureau, National Revenue 

Center, 550 Main Street, Room 8002, 

Cincinnati, OH 45202. 

§ 5.12 Delegations of the Administrator. 

Most of the regulatory authorities of 

the Administrator contained in this part 

are delegated to ‘‘appropriate TTB 

officers.’’ To find out which officers 

have been delegated specific authorities, 

see the current version of TTB Order 

1135.5, Delegation of the 

Administrator’s Authorities in 27 CFR 

part 5, Labeling and Advertising of 

Distilled Spirits. Copies of this order 

can be obtained by accessing the TTB 

website (https://www.ttb.gov) or by 

mailing a request to the Alcohol and 

Tobacco Tax and Trade Bureau, 

National Revenue Center, 550 Main 

Street, Room 8002, Cincinnati, OH 

45202. 


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7582 Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 

Subpart B—Certificates of Label 

Approval and Certificates of 

Exemption from Label Approval 

Requirements for Distilled Spirits 

Bottled in the United States 

§ 5.21 Requirement for certificates of label 

approval (COLAs) for distilled spirits 

bottled in the United States. 

(a) Applicability. The certificate of 

label approval (COLA) requirements 

described in this section apply to 

distilled spirits bottled in the United 

States, outside of customs custody. 

(b) Distilled spirits shipped or sold in 

interstate commerce. No person may 

bottle distilled spirits without first 

applying for and obtaining a COLA 

issued by the appropriate TTB officer. 

This requirement applies to distilled 

spirits produced and bottled in the 

United States and to distilled spirits 

imported in bulk, regardless of where 

produced, and bottled in the United 

States. Bottlers may obtain an 

exemption from this requirement only if 

they satisfy the conditions set forth in 

§ 5.23. 

(c) Evidence of COLA. Upon request 

by the appropriate TTB officer, a bottler 

or importer must provide evidence that 

a container of distilled spirits is covered 

by a COLA. This requirement may be 

satisfied by providing original COLAs, 

photocopies or electronic copies of 

COLAs, or records showing the TTB 

identification number assigned to the 

approved certificate. 

§ 5.22 Rules regarding certificates of label 

approval (COLAs) for distilled spirits 

bottled in the United States. 

(a) What a COLA authorizes. An 

approved TTB Form 5100.31 authorizes 

the bottling of distilled spirits covered 

by the certificate of label approval 

(COLA), as long as the container bears 

labels identical to the labels appearing 

on the face of the COLA, or labels with 

changes authorized by TTB on the 

COLA or otherwise (such as through the 

issuance of public guidance available on 

the TTB website at https://www.ttb.gov). 

(b) When to obtain a COLA. The 

COLA must be obtained prior to 

bottling. No bottler may bottle distilled 

spirits, or remove distilled spirits from 

the premises where bottled, unless a 

COLA has been obtained. 

(c) Application for a COLA. The 

bottler may apply for a COLA by 

submitting an application to TTB on 

Form 5100.31, in accordance with the 

instructions on the form. The bottler 

may apply for a COLA either 

electronically by accessing TTB’s online 

system, COLAs Online, at https://

www.ttb.gov, or by submitting the paper 

form. For procedures regarding the 

issuance of COLAs, see part 13 of this 

chapter. 

§ 5.23 Application for exemption from 

label approval for distilled spirits bottled in 

the United States. 

(a) Exemption. Any bottler of distilled 

spirits may apply to be exempt from the 

requirements of §§ 5.21, 5.22, and 

5.30(h), by showing to the satisfaction of 

the appropriate TTB officer that the 

distilled spirits to be bottled are not to 

be sold, offered for sale, or shipped or 

delivered for shipment, or otherwise 

introduced, in interstate or foreign 

commerce. 

(b) Application required. The bottler 

must file an application on TTB Form 

5100.31 for exemption from label 

approval before bottling the distilled 

spirits. The bottler may apply for a 

certificate of exemption from label 

approval either electronically, by 

accessing TTB’s online system, COLAs 

Online, at https://www.ttb.gov, or by 

using the paper form. For procedures 

regarding the issuance of certificates of 

exemption from label approval, see part 

13 of this chapter. 

(c) Labeling of distilled spirits covered 

by certificate of exemption. The 

application for a certificate of 

exemption from label approval requires 

that the applicant identify the State in 

which the product will be sold. As a 

condition of receiving exemption from 

label approval, the label covered by an 

approved certificate of exemption must 

include the statement ‘‘For sale in 

[name of State] only.’’ See §§ 19.517 and 

19.518 of this chapter for additional 

labeling rules that apply to distilled 

spirits covered by a certificate of 

exemption. 

Requirements for Distilled Spirits 

Imported in Containers 

§ 5.24 Certificates of label approval 

(COLAs) for distilled spirits imported in 

containers. 

(a) Application requirement. Any 

person removing distilled spirits in 

containers from customs custody for 

consumption must first apply for and 

obtain a certificate of label approval 

(COLA) covering the distilled spirits 

from the appropriate TTB officer, or 

obtain authorization to use the COLA 

from the person to whom the COLA is 

issued. 

(b) Release of distilled spirits from 

customs custody. Distilled spirits, 

imported in containers, are not eligible 

for release from customs custody for 

consumption, and no person may 

remove such distilled spirits from 

customs custody for consumption, 

unless the person removing the distilled 

spirits has obtained a COLA covering 

the distilled spirits and is able to 

provide it (either electronically or on 

paper) upon request. Products imported 

under another person’s COLA are 

eligible for release only if each bottle or 

individual container to be imported 

bears the name (or trade name) and 

address of the person to whom the 

COLA was issued by TTB, and only if 

the importer using the COLA to obtain 

release of a shipment can substantiate 

that the person to whom the COLA was 

issued has authorized its use by the 

importer. 

(c) Filing requirements. If filing 

electronically, the importer must file 

with U.S. Customs and Border 

Protection (CBP), at the time of filing the 

customs entry, the TTB-assigned 

identification number of the valid COLA 

that corresponds to the label on the 

product or lot of distilled spirits to be 

imported. If the importer is not filing 

electronically, the importer must 

provide a copy of the COLA to CBP at 

the time of entry. In addition, the 

importer must provide a copy of the 

applicable COLA, and proof of the 

COLA holder’s authorization if 

applicable, upon request by the 

appropriate TTB officer or a customs 

officer. 

(d) Evidence of COLA. Upon request 

by the appropriate TTB officer, an 

importer must provide evidence that a 

container of distilled spirits is covered 

by a COLA. This requirement may be 

satisfied by providing original COLAs, 

photocopies or electronic copies of 

COLAs, or records showing the TTB 

identification number assigned to the 

approved certificate. 

(e) Scope of this section. The COLA 

requirement imposed by this section 

applies only to distilled spirits that are 

removed for sale or any other 

commercial purpose. Distilled spirits 

that are imported in containers are not 

eligible for a certificate of exemption 

from label approval. See 27 CFR 27.49, 

27.74, and 27.75 for labeling exemptions 

applicable to certain imported samples 

of distilled spirits. 

(f) Relabeling in customs custody. 

Containers of distilled spirits in customs 

custody that are required to be covered 

by a COLA but are not labeled in 

conformity with a COLA must be 

relabeled, under the supervision and 

direction of customs officers, prior to 

their removal from customs custody for 

consumption. 

§ 5.25 Rules regarding certificates of label 

approval (COLAs) for distilled spirits 

imported in containers. 

(a) What COLA authorizes. An 

approved TTB Form 5100.31 authorizes 

the use of the labels covered by the 


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certificate of label approval (COLA) on 

containers of distilled spirits, as long as 

the container bears labels identical to 

the labels appearing on the face of the 

COLA, or labels with changes 

authorized by the form or otherwise 

authorized by TTB (such as through the 

issuance of public guidance available on 

the TTB website at https://www.ttb.gov). 

(b) When to obtain a COLA. The 

COLA must be obtained prior to the 

removal of distilled spirits in containers 

from customs custody for consumption. 

(c) Application for a COLA. The 

person responsible for the importation 

of distilled spirits must obtain approval 

of the labels by submitting an 

application to TTB on TTB Form 

5100.31. A person may apply for a 

COLA either electronically, by accessing 

TTB’s online system, COLAs Online, at 

https://www.ttb.gov, or by submitting 

the paper form. For procedures 

regarding the issuance of COLAs, see 

part 13 of this chapter. 

Administrative Rules 

§ 5.27 Presenting certificates of label 

approval (COLAs) to Government officials. 

A certificate holder must present the 

original or a paper or electronic copy of 

the appropriate certificate of label 

approval (COLA) upon the request of 

any duly authorized representative of 

the United States Government. 

§ 5.28 Formulas, samples, and 

documentation. 

(a) In addition to any formula 

specifically required under subpart J of 

this part, TTB may require formulas 

under certain circumstances in 

connection with the label approval 

process. Prior to or in conjunction with 

the review of an application for a 

certificate of label approval (COLA) on 

TTB Form 5100.31, the appropriate TTB 

officer may require a bottler or importer 

to submit a formula, the results of 

laboratory testing of the distilled spirits, 

or a sample of any distilled spirits or 

ingredients used in producing a 

distilled spirit. After the issuance of a 

COLA, or with regard to any distilled 

spirits required to be covered by a 

COLA, the appropriate TTB officer may 

require a full and accurate statement of 

the contents of the container. 

(b) A formula may be filed 

electronically by using Formulas 

Online, or it may be submitted on paper 

on TTB Form 5100.51. See § 5.11 for 

more information on forms and 

Formulas Online. 

§ 5.29 Personalized labels. 

(a) General. Applicants for label 

approval may obtain permission from 

TTB to make certain changes in order to 

personalize labels without having to 

resubmit labels for TTB approval. A 

personalized label is an alcohol 

beverage label that meets the minimum 

mandatory label requirements and is 

customized for customers. Personalized 

labels may contain a personal message, 

picture, or other artwork that is specific 

to the consumer who is purchasing the 

product. For example, a distiller may 

offer individual or corporate customers 

labels that commemorate an event such 

as a wedding or grand opening. 

(b) Application. Any person who 

intends to offer personalized labels must 

submit a template for the personalized 

label as part of the application for label 

approval required under §§ 5.21 or 5.24, 

and must note on the application a 

description of the specific personalized 

information that may change. 

(c) Approval of personalized label. If 

the application complies with the 

regulations, TTB will issue a certificate 

of label approval (COLA) with a 

qualification allowing the 

personalization of labels. The 

qualification will allow the certificate 

holder to add or change items on the 

personalized label such as salutations, 

names, graphics, artwork, 

congratulatory dates and names, or 

event dates without applying for a new 

COLA. All of these items on 

personalized labels must comply with 

the regulations of this part. 

(d) Changes not allowed to 

personalized labels. Approval of an 

application to personalize labels does 

not authorize the addition of any 

information that discusses either the 

alcohol beverage or characteristics of the 

alcohol beverage or that is inconsistent 

with or in violation of the provisions of 

this part or any other applicable 

provision of law or regulations. 

§ 5.30 Certificates of age and origin for 

imported spirits. 

(a) Scotch, Irish, and Canadian 

whiskies. (1) Scotch, Irish, and Canadian 

whiskies, imported in containers, are 

not eligible for release from customs 

custody for consumption, and no person 

may remove such whiskies from 

customs custody for consumption, 

unless that person has obtained and is 

in possession of an invoice 

accompanied by a certificate of origin 

issued by an official duly authorized by 

the appropriate foreign government, 

certifying: 

(i) That the particular distilled spirits 

are Scotch, Irish, or Canadian whisky, as 

the case may be; and 

(ii) That the distilled spirits have been 

manufactured in compliance with the 

laws of the respective foreign 

governments regulating the manufacture 

of whisky for home consumption. 

(2) In addition, an official duly 

authorized by the appropriate foreign 

government must certify to the age of 

the youngest distilled spirits in the 

container. The age certified shall be the 

period during which, after distillation 

and before bottling, the distilled spirits 

have been stored in oak containers. 

(b) Brandy and Cognac. Brandy (other 

than fruit brandies of a type not 

customarily stored in oak containers) or 

Cognac, imported in containers, is not 

eligible for release from customs 

custody for consumption, and no person 

may remove such brandy or Cognac 

from customs custody for consumption, 

unless the person so removing the 

brandy or Cognac possesses a certificate 

issued by an official duly authorized by 

the appropriate foreign country 

certifying that the age of the youngest 

brandy or Cognac in the container is not 

less than 2 years, or if age is stated on 

the label that none of the distilled 

spirits are of an age less than that stated. 

The age certified shall be the period 

during which, after distillation and 

before bottling, the distilled spirits have 

been stored in oak containers. If the 

label of any fruit brandy, not stored in 

oak containers, bears any statement of 

storage in another type of container, the 

brandy is not eligible for release from 

customs custody for consumption, and 

no person may remove such brandy 

from customs custody for consumption, 

unless the person so removing the 

brandy possesses a certificate issued by 

an official duly authorized by the 

appropriate foreign government 

certifying to such storage. Cognac, 

imported in bottles, is not eligible for 

release from customs custody for 

consumption, and no person may 

remove such Cognac from customs 

custody for consumption, unless the 

person so removing the Cognac 

possesses a certificate issued by an 

official duly authorized by the French 

Government, certifying that the product 

is grape brandy distilled in the Cognac 

region of France and entitled to be 

designated as ‘‘Cognac’’ by the laws and 

regulations of the French Government. 

(c) Rum. Rum imported in containers 

that contain any statement of age is not 

eligible to be released from customs 

custody for consumption, and no person 

may remove such rum from customs 

custody for consumption, unless the 

person so removing the rum possesses a 

certificate issued by an official duly 

authorized by the appropriate foreign 

country, certifying to the age of the 

youngest rum in the container. The age 

certified shall be the period during 

which, after distillation and before 


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bottling, the distilled spirits have been 

stored in oak containers. 

(d) Tequila. (1) Tequila imported in 

containers is not eligible for release 

from customs custody for consumption, 

and no person may remove such Tequila 

from customs custody for consumption, 

unless the person removing such 

Tequila possesses a Certificate of 

Tequila Export issued by an official 

duly authorized by the Mexican 

Government or a conformity assessment 

body stating that the product is entitled 

to be designated as Tequila under the 

applicable laws and regulations of the 

Mexican Government. 

(2) If the label of any Tequila 

imported in containers contains any 

statement of age, the Tequila is not 

eligible for release from customs 

custody for consumption, and no person 

may remove such Tequila from customs 

custody for consumption, unless the 

person removing the Tequila possesses 

a Certificate of Tequila Export issued by 

an official duly authorized by the 

Mexican Government or a conformity 

assessment body as to the age of the 

youngest Tequila in the container. The 

age certified shall be the period during 

which the Tequila has been stored in 

oak containers after distillation and 

before bottling. 

(e) Other whiskies. Whisky, as defined 

in § 5.143(c)(2) through (7) and (10) 

through (14), imported in bottles, is not 

eligible for release from customs 

custody for consumption, and no person 

shall remove such whiskies from 

customs custody for consumption, 

unless that person has obtained and is 

in possession of a certificate issued by 

an official duly authorized by the 

appropriate foreign government 

certifying: 

(1) In the case of whisky (regardless 

of whether it is mixed or blended) that 

contains no neutral spirits: 

(i) The type of the whisky as defined 

in § 5.143; 

(ii) The American proof at which the 

whisky was distilled; 

(iii) That no neutral spirits (or other 

whisky in the case of straight whisky) 

have been added or otherwise included 

in the whisky; 

(iv) The age of the whisky; and 

(v) The type of oak barrel in which the 

whisky was aged and whether the barrel 

was new or reused, charred or 

uncharred; and 

(2) In the case of whisky containing 

neutral spirits: 

(i) The type of the whisky as defined 

in § 5.143; 

(ii) The percentage of straight whisky 

used in the blend, if any; 

(iii) The American proof at which any 

straight whisky in the blend was 

distilled; 

(iv) The percentage of whisky other 

than straight whisky in the blend, if any; 

(v) The percentage of neutral spirits in 

the blend and the name of the 

commodity from which the neutral 

spirits were distilled; 

(vi) The age of any straight whisky 

and the age of any other whisky in the 

blend; and 

(vii) The type of oak barrel in which 

the age of each whisky in the blend was 

attained and whether the barrel was 

new or reused and charred or 

uncharred. 

(f) Miscellaneous. Distilled spirits 

(other than Scotch, Irish, and Canadian 

whiskies, and Cognac) imported in 

containers are not eligible for release 

from customs custody for consumption, 

and no person shall remove such spirits 

from customs custody for consumption, 

unless that person has obtained and is 

in possession of an invoice 

accompanied by a certificate of origin 

issued by an official duly authorized by 

the appropriate foreign government, if 

the issuance of such certificates with 

respect to such distilled spirits is 

required by the foreign government 

concerned, certifying as to the identity 

of the distilled spirits and that the 

distilled spirits have been manufactured 

in compliance with the laws of the 

respective foreign government 

regulating the manufacture of such 

distilled spirits for home consumption. 

(g) Retention of certificates—distilled 

spirits imported in containers. The 

importer of distilled spirits imported in 

containers must retain for 5 years 

following the removal of the bottled 

distilled spirits from customs custody 

copies of the certificates (and 

accompanying invoices, if applicable) 

required by paragraphs (a) through (f) of 

this section, and must provide them 

upon request of the appropriate TTB 

officer or a customs officer. 

(h) Distilled spirits imported in bulk 

for bottling in the United States. 

Distilled spirits that would be required 

under paragraphs (a) through (f) of this 

section to be covered by a certificate of 

age and/or a certificate of origin and that 

are imported in bulk for bottling in the 

United States may be removed from the 

premises where bottled only if the 

bottler possesses a certificate of age and/ 

or a certificate of origin, issued by the 

appropriate entity as set forth in 

paragraphs (a) through (f) of this section, 

applicable to the spirits that provides 

the same information as a certificate 

required under paragraphs (a) through 

(f) of this section, would provide for like 

spirits imported in bottles. 

(i) Retention of distilled spirits 

certificates—distilled spirits in bulk. 

The bottler of distilled spirits imported 

in bulk must retain, for 5 years 

following the removal of such distilled 

spirits from the premises where bottled, 

copies of the certificates required by 

paragraphs (a) through (f) of this section, 

and must provide them upon request of 

the appropriate TTB officer. 

Subpart C—Alteration of Labels, 

Relabeling, and Adding Information to 

Containers 

§ 5.41 Alteration of labels. 

(a) Prohibition. It is unlawful for any 

person to alter, mutilate, destroy, 

obliterate or remove any mark, brand, or 

label on distilled spirits in containers 

held for sale in interstate or foreign 

commerce, or held for sale after 

shipment in interstate or foreign 

commerce, except as authorized by 

§§ 5.42, 5.43, or 5.44, or as otherwise 

authorized by Federal law. 

(b) Authorized relabeling. For 

purposes of the relabeling activities 

authorized by this subpart, the term 

‘‘relabel’’ includes the alteration, 

mutilation, destruction, obliteration, or 

removal of any existing mark, brand, or 

label on the container, as well as the 

addition of a new label (such as a sticker 

that adds information about the product 

or information engraved on the 

container) to the container, and the 

replacement of a label with a new label 

bearing identical information. 

(c) Obligation to comply with other 

requirements. Authorization to relabel 

under this subpart: 

(1) In no way authorizes the 

placement of labels on containers that 

do not accurately reflect the brand, 

bottler, identity, or other characteristics 

of the product; 

(2) Does not relieve the person 

conducting the relabeling operations 

from any obligation to comply with the 

regulations in this part and with State 

or local law; and, 

(3) Does not relieve the person 

conducting the relabeling operations 

from any obligation to obtain 

permission from the owner of the brand 

where otherwise required. 

§ 5.42 Authorized relabeling activities by 

distillers and importers. 

(a) Relabeling at distilled spirits plant 

premises. A proprietor of distilled 

spirits plant premises may relabel 

domestically bottled distilled spirits 

prior to removal from, and after return 

to bond at, the distilled spirits plant 

premises, with labels covered by a 

certificate of label approval (COLA), 

without obtaining separate permission 


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from TTB for the relabeling activity, 

provided that the proprietor is the 

certificate holder (and bottler). 

(b) Relabeling after removal from 

distilled spirits plant premises. A 

proprietor of distilled spirits plant 

premises may relabel domestically 

bottled distilled spirits (or direct the 

relabeling of such spirits by an 

authorized agent) after removal from 

distilled spirits plant premises with 

labels covered by a COLA, without 

obtaining separate permission from TTB 

for the relabeling activity, provided that 

the proprietor is the certificate holder 

(and bottler). 

(c) Relabeling in customs custody. 

Under the supervision of U.S. customs 

officers, imported distilled spirits in 

containers in customs custody may be 

relabeled without obtaining separate 

permission from TTB for the relabeling 

activity. Such containers must bear 

labels covered by a COLA upon their 

removal from customs custody for 

consumption. See § 5.24(b). 

(d) Relabeling after removal from 

customs custody. The importer of 

distilled spirits in containers may 

relabel imported distilled spirits (or 

direct the relabeling of such spirits by 

an authorized agent) after removal from 

customs custody without obtaining 

separate permission from TTB for the 

relabeling activity, as long as the labels 

are covered by a COLA. 

§ 5.43 Relabeling activities that require 

separate written authorization from TTB. 

(a) General. Any permittee holding 

distilled spirits for sale who needs to 

relabel the containers but is not the 

original bottler may apply for written 

permission for the relabeling of distilled 

spirits containers. The appropriate TTB 

officer may permit relabeling of distilled 

spirits in containers if the facts show 

that the relabeling is for the purpose of 

compliance with the requirements of 

this part or State law, or for the purpose 

of replacing damaged labels. 

(b) Application. The written 

application must include: 

(1) Copies of the original and 

proposed new labels; 

(2) The circumstances of the request, 

including the reason for relabeling; 

(3) The number of containers to be 

relabeled; 

(4) The location where the relabeling 

will take place; and 

(5) The name and address of the 

person who will be conducting the 

relabeling operations. 

§ 5.44 Adding a label or other information 

to a container that identifies the wholesaler, 

retailer, or consumer. 

Any label or other information that 

identifies the wholesaler, retailer, or 

consumer of the distilled spirits may be 

added to containers (by the addition of 

stickers, engraving, stenciling, etc.) 

without prior approval from TTB and 

without being covered by a certificate of 

label approval or certificate of 

exemption from label approval. Such 

information may be added before or 

after the containers have been removed 

from distilled spirits plant premises or 

released from customs custody. The 

information added: 

(a) May not violate the provisions of 

subpart F, G, or H of this part; 

(b) May not contain any reference to 

the characteristics of the product; and 

(c) May not be added to the container 

in such a way that it obscures any other 

labels on the container. 

Subpart D—Label Standards 

§ 5.51 Requirement for firmly affixed 

labels. 

Any label that is not an integral part 

of the container must be affixed to the 

container in such a way that it cannot 

be removed without thorough 

application of water or other solvents. 

§ 5.52 Legibility and other requirements 

for mandatory information on labels. 

(a) Readily legible. Mandatory 

information on labels must be readily 

legible to potential consumers under 

ordinary conditions. 

(b) Separate and apart. Subject to the 

exceptions below, mandatory 

information on labels, except brand 

names, must be separate and apart from 

any additional information. 

(1) This does not preclude the 

addition of brief optional phrases of 

additional information as part of the 

class or type designation (such as, 

‘‘premium vodka’’ or ‘‘delicious 

Tequila’’), the name and address 

statement (such as, ‘‘Proudly distilled 

and bottled by ABC Distilling Company, 

Atlanta, GA, for over 30 years’’) or other 

information required by § 5.63(a) and 

(b). The statements required by § 5.63(c) 

may not include additional information. 

(2) Mandatory information (other than 

an aspartame declaration required by 

§ 5.63(c)(8)) may be contained among 

other descriptive or explanatory 

information if the script, type, or 

printing of the mandatory information is 

substantially more conspicuous than 

that of the descriptive or explanatory 

information. 

(c) Contrasting background. 

Mandatory information must appear in 

a color that contrasts with the 

background on which it appears, except 

that if the net contents are blown into 

a glass container, they need not be 

contrasting. The color of the container 

and of the distilled spirits must be taken 

into account if the label is transparent 

or if mandatory label information is 

etched, engraved, sandblasted, or 

otherwise carved into the surface of the 

container or is branded, stenciled, 

painted, printed, or otherwise directly 

applied on to the surface of the 

container. Examples of acceptable 

contrasts are: 

(1) Black lettering appearing on a 

white or cream background; or 

(2) White or cream lettering appearing 

on a black background. 

(d) Capitalization. Except for the 

aspartame statement when required by 

§ 5.63(c)(8), which must appear in all 

capital letters, mandatory information 

prescribed by this part may appear in all 

capital letters, in all lower case letters, 

or in mixed-case using both capital and 

lower-case letters. 

§ 5.53 Minimum type size of mandatory 

information. 

All capital and lowercase letters in 

statements of mandatory information on 

labels must meet the following type size 

requirements. 

(a) Containers of more than 200 

milliliters. All mandatory information 

must be in script, type, or printing that 

is at least two millimeters in height. 

(b) Containers of 200 milliliters or 

less. All mandatory information must be 

in script, type, or printing that is at least 

one millimeter in height. 

§ 5.54 Visibility of mandatory information. 

Mandatory information on a label 

must be readily visible and may not be 

covered or obscured in whole or in part. 

See § 5.62 for rules regarding packaging 

of containers (including cartons, 

coverings, and cases). See subpart N of 

this part for regulations pertaining to 

advertising materials. 

§ 5.55 Language requirements. 

(a) General. Mandatory information 

must appear in the English language, 

with the exception of the brand name 

and except as provided in paragraph (c) 

of this section. 

(b) Foreign languages. Additional 

statements in a foreign language, 

including translations of mandatory 

information that appears elsewhere in 

English on the label, are allowed on 

labels and containers as long as they do 

not in any way conflict with, or 

contradict, the requirements of this part. 

(c) Distilled spirits for consumption in 

the Commonwealth of Puerto Rico. 

Mandatory information may be stated 

solely in the Spanish language on labels 

of distilled spirits bottled for 

consumption within the Commonwealth 

of Puerto Rico. 


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§ 5.56 Additional information. 

Information (other than mandatory 

information) that is truthful, accurate, 

and specific, and that does not violate 

subparts F, G, or H of this part, may 

appear on labels. Such additional 

information may not conflict with, 

modify, qualify or restrict mandatory 

information in any manner. 

Subpart E—Mandatory Label 

Information 

§ 5.61 What constitutes a label for 

purposes of mandatory information. 

(a) Label. Certain information, as 

outlined in § 5.63, must appear on a 

label. When used in this part for 

purposes of determining where 

mandatory information must appear, the 

term ‘‘label’’ includes: 

(1) Material affixed to the container, 

whether made of paper, plastic, metal, 

or other matter; 

(2) For purposes of the net content 

statement only, information blown, 

embossed, or molded into the container 

as part of the process of manufacturing 

the container; 

(3) Information etched, engraved, 

sandblasted, or otherwise carved into 

the surface of the container; and 

(4) Information branded, stenciled, 

painted, printed, or otherwise directly 

applied on to the surface of the 

container. 

(b) Information appearing elsewhere 

on the container. Information appearing 

on the following parts of the container 

is subject to all of the restrictions and 

prohibitions set forth in subparts F, G 

and H of this part, but will not satisfy 

any requirements in this part for 

mandatory information that must appear 

on labels: 

(1) Material affixed to, or information 

appearing on, the bottom surface of the 

container; 

(2) Caps, corks or other closures 

unless authorized to bear mandatory 

information by the appropriate TTB 

officer; and 

(3) Foil or heat shrink bottle capsules. 

(c) Materials not firmly affixed to the 

container. Any materials that 

accompany the container to the 

consumer but are not firmly affixed to 

the container, including booklets, 

leaflets, and hang tags, are not ‘‘labels’’ 

for purposes of this part. Such materials 

are instead subject to the advertising 

regulations in subpart N of this part. 

§ 5.62 Packaging (cartons, coverings, and 

cases). 

(a) General. An individual covering, 

carton, or other container of the bottle 

used for sale at retail (other than a 

shipping container), may not contain 

any statement, design, device, or 

graphic, pictorial, or emblematic 

representation that is prohibited on 

labels by regulations in subpart F, G, or 

H of this part. 

(b) Sealed opaque cartons. If 

containers are enclosed in sealed 

opaque coverings, cartons, or other 

containers used for sale at retail (other 

than shipping containers), such 

coverings, cartons, or other containers 

must bear all mandatory label 

information. 

(c) Other cartons. (1) If an individual 

covering, carton, or other container of 

the bottle used for sale at retail (other 

than a shipping container) is so 

designed that the bottle is readily 

removable, it may display any 

information which is not in conflict 

with the label on the bottle contained 

therein. 

(2) Cartons displaying brand names 

and/or designations must display such 

names and designations in their 

entirety—brand names required to be 

modified, e.g., by ‘‘Brand’’ or ‘‘Product 

of U.S.A.’’, must also display such 

modification. 

(3) Specialty products for which a 

truthful and adequate statement of 

composition is required must display 

such statement. 

(d) Labeling of containers within the 

packaging. The container within the 

packaging is subject to all labeling 

requirements of this part, including 

mandatory labeling information 

requirements, regardless of whether the 

packaging bears such information. 

§ 5.63 Mandatory label information. 

(a) Mandatory information required to 

appear within the same field of vision. 

Distilled spirits containers must bear a 

label or labels (as defined in § 5.61) 

containing the following information 

within the same field of vision (which 

means a single side of a container (for 

a cylindrical container, a side is 40 

percent of the circumference) where all 

of the pieces of information can be 

viewed simultaneously without the 

need to turn the container): 

(1) Brand name, in accordance with 

§ 5.64; 

(2) Class, type, or other designation, 

in accordance with subpart I of this part; 

and 

(3) Alcohol content, in accordance 

with § 5.65. 

(b) Other mandatory information. 

Distilled spirits containers must bear a 

label or labels (as defined in § 5.61) 

anywhere on the container bearing the 

following information: 

(1) Name and address of the bottler or 

distiller, in accordance with § 5.66, or 

the importer, in accordance with § 5.67 

or § 5.68, as applicable; and 

(2) Net contents (which may be 

blown, embossed, or molded into the 

container as part of the process of 

manufacturing the container), in 

accordance with § 5.70. 

(c) Disclosure of certain ingredients, 

processes and other information. The 

following ingredients, processes, and 

other information must be disclosed on 

a label, without the inclusion of any 

additional information as part of the 

statement, as follows: 

(1) Neutral spirits. The percentage of 

neutral spirits and the name of the 

commodity from which the neutral 

spirits were distilled, or in the case of 

continuously distilled neutral spirits or 

gin, the name of the commodity only, in 

accordance with § 5.7; 

(2) Coloring or treatment with wood. 

Coloring or treatment with wood, in 

accordance with §§ 5.72 and 5.73; 

(3) Age. A statement of age or age and 

percentage of type, when required or 

used, in accordance with § 5.74; 

(4) State of distillation. State of 

distillation of any type of whisky 

defined in § 5.143(c)(2) through (c)(7), 

which is distilled in the United States, 

in accordance with § 5.66(f); 

(5) FD&C Yellow No. 5. If a distilled 

spirit contains the coloring material 

FD&C Yellow No. 5, the label must 

include a statement to that effect, such 

as ‘‘FD&C Yellow No. 5’’ or ‘‘Contains 

FD&C Yellow No. 5’’; 

(6) Cochineal extract or carmine. If a 

distilled spirit contains the color 

additive cochineal extract or the color 

additive carmine, the label must include 

a statement to that effect, using the 

respective common or usual name (such 

as ‘‘contains cochineal extract’’ or 

‘‘contains carmine’’). This requirement 

applies to labels when either of the 

coloring materials was used in a 

distilled spirit that is removed from 

bottling premises or from customs 

custody on or after April 16, 2013; 

(7) Sulfites. If a distilled spirit 

contains 10 or more parts per million of 

sulfur dioxide or other sulfiting agent 

measured as total sulfur dioxide, the 

label must include a statement to that 

effect. Examples of acceptable 

statements are ‘‘Contains sulfites’’ or 

‘‘Contains (a) sulfiting agent(s)’’ or a 

statement identifying the specific 

sulfiting agent. The alternative terms 

‘‘sulphites’’ or ‘‘sulphiting’’ may be 

used; and 

(8) Aspartame. If the distilled spirit 

contains aspartame, the label must 

include the following statement, in 

capital letters, separate and apart from 

all other information: 


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‘‘PHENYLKETONURICS: CONTAINS 

PHENYLALANINE.’’ 

(d) Distinctive liquor bottles. See 

§ 5.205(b)(2) for exemption from 

placement requirements for certain 

mandatory information for distinctive 

liquor bottles. 

§ 5.64 Brand name. 

(a) Requirement. The distilled spirits 

label must include a brand name. If the 

distilled spirits are not sold under a 

brand name, then the name of the 

bottler, distiller or importer, as 

applicable, appearing in the name and 

address statement is treated as the brand 

name. 

(b) Misleading brand names. Labels 

may not include any misleading brand 

names. A brand name is misleading if it 

creates (by itself or in association with 

other printed or graphic matter) any 

erroneous impression or inference as to 

the age, origin, identity, or other 

characteristics of the distilled spirits. A 

brand name that would otherwise be 

misleading may be qualified with the 

word ‘‘brand’’ or with some other 

qualification, if the appropriate TTB 

officer determines that the qualification 

dispels any misleading impression that 

might otherwise be created. 

§ 5.65 Alcohol content. 

(a) General. The alcohol content for 

distilled spirits must be stated on the 

label as a percentage of alcohol by 

volume. Products that contain a 

significant amount of material, such as 

solid fruit, that may absorb spirits after 

bottling must state the alcohol content 

at the time of bottling as follows: 

‘‘Bottled at ll percent alcohol by 

volume.’’ 

(b) How the alcohol content must be 

expressed. The following rules apply to 

statements of alcohol content. 

(1) A statement of alcohol content 

must be expressed as a percentage of 

alcohol by volume. 

(i) In addition, the alcohol content in 

degrees of proof may be stated on a label 

as long as it appears in the same field 

of vision as the mandatory statement of 

alcohol content as a percentage of 

alcohol by volume. Additional 

statements of proof may appear on the 

label without being in the same field of 

vision as the mandatory alcohol by 

volume statement. 

(ii) Other truthful, accurate, and 

specific factual representations of 

alcohol content, such as alcohol by 

weight, may be made, as long as they 

appear together with, and as part of, the 

statement of alcohol content as a 

percentage of alcohol by volume. 

(2)(i) The alcohol content statement 

must be expressed in one of the 

following formats: 

(A) ‘‘Alcohol ll percent by 

volume’’; 

(B) ‘‘ll percent alcohol by volume’’; 

or 

(C) ‘‘Alcohol by volume ll 

percent.’’ 

(ii) Any of the words or symbols may 

be enclosed in parentheses and 

authorized abbreviations may be used 

with or without a period. The alcohol 

content statement does not have to 

appear with quotation marks. 

(3) The statements listed in paragraph 

(b)(2)(i) of this section must appear as 

shown, except that the following 

abbreviations may be used: Alcohol may 

be abbreviated as ‘‘alc’’; percent may be 

represented by the percent symbol ‘‘%’’; 

alcohol and volume may be separated 

by a slash ‘‘/’’ in lieu of the word ‘‘by’’; 

and volume may be abbreviated as 

‘‘vol’’. 

(4) The following are examples of 

alcohol content statements that comply 

with the requirements of this part: 

(i) ‘‘40% alc/vol’’; 

(ii) ‘‘Alc. 40 percent by vol.’’; 

(iii) ‘‘Alc 40% by vol’’; and 

(iv) ‘‘40% Alcohol by Volume.’’ 

(c) Tolerances. A tolerance of plus or 

minus 0.3 percentage points is allowed 

for actual alcohol content that is above 

or below the labeled alcohol content. 

§ 5.66 Name and address for domestically 

bottled distilled spirits that were wholly 

made in the United States. 

(a) General. Domestically bottled 

distilled spirits that were wholly made 

in the United States and contain no 

imported distilled spirits must be 

labeled in accordance with this section. 

(See §§ 5.67 and 5.68 for name and 

address requirements applicable to 

distilled spirits that are not wholly 

made in the United States.) For 

purposes of this section, a ‘‘processor’’ 

who solely bottles the labeled distilled 

spirits will be considered the ‘‘bottler.’’ 

(b) Form of statement. The bottler, 

distiller, or processor of the distilled 

spirits must be identified by a phrase 

describing the function performed by 

that person. If that person performs 

more than one function, the label may 

(but is not required to) so indicate. 

(1) If the name of the bottler appears 

on the label, it must be preceded by a 

phrase such as ‘‘bottled by,’’ ‘‘canned 

by,’’ ‘‘packed by,’’ or ‘‘filled by,’’ 

followed by the name and address of the 

bottler. 

(2) If the name of the processor 

appears on the label, it must be 

preceded by a phrase such as ‘‘blended 

by,’’ ‘‘made by,’’ ‘‘prepared by,’’ 

‘‘produced by,’’ or ‘‘manufactured by,’’ 

as appropriate, followed by the name 

and address of the processor. When 

applied to distilled spirits, the term 

‘‘produced by’’ indicates a processing 

operation (formerly known as 

rectification) that involves a change in 

the class or type of the product through 

the addition of flavors or some other 

processing activity. 

(3) If the name of the distiller appears 

on the label, it must be preceded by a 

phrase such as ‘‘distilled by,’’ followed 

by the name and address of the distiller. 

If the distilled spirits were bottled for 

the distiller thereof, the name and 

address of the distiller may be preceded 

by a phrase such as ‘‘distilled by and 

bottled for,’’ or ‘‘bottled for.’’ 

(c) Listing of more than one function. 

If different functions are performed by 

more than one person, statements on the 

label may not create the misleading 

impression that the different functions 

were performed by the same person. 

(d) Form of address—(1) General. The 

address consists of the city and State 

where the operation occurred, or the 

city and State of the principal place of 

business of the person performing the 

operation. This information must be 

consistent with the information on the 

basic permit. Addresses may, but are not 

required to, include additional 

information such as street names, 

counties, zip codes, phone numbers, 

and website addresses. The postal 

abbreviation of the State name may be 

used; for example, California may be 

abbreviated as CA. 

(2) More than one address. If the 

bottler, distiller, or processor listed on 

the name and address statement is the 

actual operator of more than one 

distilled spirits plant engaged in 

bottling, distilling, or processing 

operations, as applicable, the label may 

state, immediately following the name 

of the permittee, the addresses of those 

other plants, in addition to the address 

of the plant at which the distilled spirits 

were bottled. In this situation, the 

address where the operation occurred 

must be indicated on the label or on the 

container by printing, coding, or other 

markings. 

(3) Principal place of business. The 

label may provide the address of the 

bottler’s, distiller’s, or processor’s 

principal place of business, in lieu of 

the place where the bottling, distilling, 

or other operation occurred, provided 

that the address where the operation 

occurred is indicated on the label or on 

the container by printing, coding, or 

other markings. 

(4) Distilled spirits bottled for another 

person. (i) If distilled spirits are bottled 

for another person, other than the actual 


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distiller thereof, the label may state, in 

addition to (but not in place of) the 

name and address of the bottler, the 

name and address of such other person, 

immediately preceded by the words 

‘‘bottled for’’ or another similar 

appropriate phrase. Such statements 

must clearly indicate the relationship 

between the two persons (for example, 

contract bottling). 

(ii) If the same brand of distilled 

spirits is bottled by two distillers that 

are not under the same ownership, the 

label for each distiller may set forth both 

locations where bottling takes place, as 

long as the label uses the actual location 

(and not the principal place of business) 

and as long as the nature of the 

arrangement is clearly set forth. 

(5) Additional addresses. No 

additional places or addresses may be 

stated for the same person unless: 

(i) That person is actively engaged in 

the conduct of an additional bona fide 

and actual alcohol beverage business at 

such additional place or address, and 

(ii) The label also contains in direct 

conjunction therewith, appropriate 

descriptive material indicating the 

function occurring at such additional 

place or address in connection with the 

particular product (such as ‘‘distilled 

by.’’) 

(e) Special rule for straight whiskies. 

If ‘‘straight whiskies’’ (see § 5.143) of the 

same type are distilled in the same State 

by two or more different distillers and 

are combined (either at the time of 

bottling or at a warehouseman’s bonded 

premises for further storage) and 

subsequently bottled and labeled as 

‘‘straight whisky,’’ that ‘‘straight 

whisky’’ must bear a label that contains 

name and address information of the 

bottler. If that combined ‘‘straight 

whisky’’ is bottled by or for the 

distillers, in lieu of the name and 

address of the bottler, the label may 

contain the words ‘‘distilled by,’’ 

followed immediately by the names (or 

trade names) and addresses of the 

different distillers who distilled a 

portion of the ‘‘straight whisky’’ and the 

percentage of ‘‘straight whisky’’ distilled 

by each distiller, with a tolerance of 

plus or minus 2 percent. If ‘‘straight 

whisky’’ consists of a mixture of 

‘‘straight whiskies’’ of the same type 

from two or more different distilleries of 

the same proprietor located within the 

same State, and if that ‘‘straight whisky’’ 

is bottled by or for that proprietor, in 

lieu of the name and address of the 

bottler, the ‘‘straight whisky’’ may bear 

a label containing the words ‘‘distilled 

by’’ followed by the name (or trade 

name) of the proprietor and the 

addresses of the different distilleries 

that distilled a portion of the ‘‘straight 

whisky.’’ 

(f) State of distillation for whisky. (1) 

The State of distillation, which is the 

State in which original distillation takes 

place, must appear on the label of any 

type of whisky defined in § 5.143(c)(2) 

through (7), which is distilled in the 

United States. The State of distillation 

may appear on any label and must be 

shown in at least one of the following 

ways: 

(i) By including a ‘‘distilled by’’ (or 

‘‘distilled and bottled by’’ or any other 

phrase including the word ‘‘distilled’’) 

statement as part of the mandatory name 

and address statement, followed by a 

single location. 

(ii) If the address shown in the 

‘‘bottled by’’ statement includes the 

State in which distillation occurred, by 

including a ‘‘bottled by’’ statement as 

part of the mandatory name and address 

statement, followed by a single location; 

(iii) By including the name of the 

State in which original distillation 

occurred immediately adjacent to the 

class or type designation (such as 

‘‘Kentucky bourbon whisky’’), as long as 

the product was both distilled and aged 

in that State in conformance with the 

requirements of § 5.143(b); or 

(iv) By including a separate statement, 

such as ‘‘Distilled in [name of State].’’ 

(2) The appropriate TTB officer may 

require that the State of distillation or 

other information appear on a label of 

any whisky subject to the requirements 

of paragraph (f)(1) of this section (and 

may prescribe placement requirements 

for such information), even if that State 

appears in the name and address 

statement, if such additional 

information is necessary to negate any 

misleading or deceptive impression that 

might otherwise be created as regards 

the actual State of distillation. 

(3) In the case of ‘‘light whisky,’’ the 

State name ‘‘Kentucky’’ or ‘‘Tennessee’’ 

may not appear on any label, except as 

a part of a name and address as 

specified in paragraph (a)(1), (2), or (4) 

of this section. 

(g) Trade or operating names. The 

name of the person appearing on the 

label may be the trade name or the 

operating name, as long as it is identical 

to a trade or operating name appearing 

on the basic permit. In the case of a 

distillation statement for spirits bottled 

in bond, the name or trade name under 

which the spirits were distilled must be 

shown. 

§ 5.67 Name and address for domestically 

bottled distilled spirits that were bottled 

after importation. 

(a) General. This section applies to 

distilled spirits that were bottled after 

importation. See § 5.68 for name and 

address requirements applicable to 

imported distilled spirits that were 

imported in a container. See 19 CFR 

parts 102 and 134 for U.S. Customs and 

Border Protection country of origin 

marking requirements. 

(b) Distilled spirits bottled after 

importation in the United States. 

Distilled spirits bottled, without further 

blending, making, preparing, producing, 

manufacturing, or distilling activities 

after importation, must bear one of the 

following name and address statements: 

(1) The name and address of the 

bottler, preceded by the words ‘‘bottled 

by,’’ ‘‘canned by,’’ ‘‘packed by,’’ or 

‘‘filled by’’; 

(2) If the distilled spirits were bottled 

for the person responsible for the 

importation, the words ‘‘imported by 

and bottled (canned, packed, or filled) 

in the United States for’’ (or a similar 

appropriate phrase) followed by the 

name and address of the principal place 

of business in the United States of the 

person responsible for the importation; 

(3) If the distilled spirits were bottled 

by the person responsible for the 

importation, the words ‘‘imported by 

and bottled (canned, packed, or filled) 

in the United States by’’ (or a similar 

appropriate phrase) followed by the 

name and address of the principal place 

of business in the United States of the 

person responsible for the importation. 

(c) Distilled spirits that were subject to 

blending or other production activities 

after importation. Distilled spirits that, 

after importation in bulk, were blended, 

made, prepared, produced, 

manufactured or further distilled, may 

not bear an ‘‘imported by’’ statement on 

the label, but must instead be labeled in 

accordance with the rules set forth in 

§ 5.66 for mandatory and optional 

labeling statements. 

(d) Optional statements. In addition to 

the statements required by paragraph 

(a)(1) of this section, the label may also 

state the name and address of the 

principal place of business of the 

foreign producer. 

(e) Form of address. (1) The address 

consists of the city and State where the 

operation occurred, or the city and State 

of the principal place of business of the 

person performing the operation. This 

information must be consistent with the 

information on the basic permit. 

Addresses may, but are not required to, 

include additional information such as 

street names, counties, zip codes, phone 

numbers, and website addresses. 

(2) If the bottler or processor listed on 

the name and address statement is the 

actual operator of more than one 

distilled spirits plant engaged in 

bottling, distilling, or processing 


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operations, as applicable, the label may 

state, immediately following the name 

of the bottler, the addresses of those 

other plants, in addition to the address 

of the plant at which the distilled spirits 

were bottled. In this situation, the 

address where the operation occurred 

must be indicated on the label or on the 

container by printing, coding, or other 

markings. 

(3) The label may provide the address 

of the bottler’s or processor’s principal 

place of business, in lieu of the place 

where the bottling, distilling, or other 

operation occurred, provided that the 

address where the operation occurred is 

indicated on the label or on the 

container by printing, coding, or other 

markings. 

(f) Trade or operating names. A trade 

name may be used if the trade name is 

listed on the basic permit or other 

qualifying documentation. 

§ 5.68 Name and address for distilled 

spirits that were imported in a container. 

(a) General. This section applies to 

distilled spirits that were imported in a 

container, as defined in § 5.1. See § 5.67 

for name and address requirements 

applicable to distilled spirits that were 

domestically bottled after importation. 

See 19 CFR parts 102 and 134 for U.S. 

Customs and Border Protection country 

of origin marking requirements. 

(b) Mandatory labeling statement. 

Distilled spirits imported in containers, 

as defined in § 5.1, must bear a label 

stating the words ‘‘imported by’’ or a 

similar appropriate phrase, followed by 

the name and address of the importer. 

(1) For purposes of this section, the 

importer is the holder of the importer’s 

basic permit who either makes the 

original customs entry or is the person 

for whom such entry is made, or the 

holder of the importer’s basic permit 

who is the agent, distributor, or 

franchise holder for the particular brand 

of imported alcohol beverages and who 

places the order abroad. 

(2) The address of the importer must 

be stated as the city and State of the 

principal place of business and must be 

consistent with the address reflected on 

the importer’s basic permit. Addresses 

may, but are not required to, include 

additional information such as street 

names, counties, zip codes, phone 

numbers, and website addresses. The 

postal abbreviation of the State name 

may be used; for example, California 

may be abbreviated as CA. 

(c) Optional statements. In addition to 

the statements required by paragraph 

(b)(1) of this section, the label may also 

state the name and address of the 

principal place of business of the 

foreign producer. 

(d) Form of address. The ‘‘place’’ 

stated must be the city and State, shown 

on the basic permit or other qualifying 

document, of the premises at which the 

operations took place; and the place for 

each operation that is designated on the 

label must be shown. 

(e) Trade or operating names. A trade 

name may be used if the trade name is 

listed on the basic permit or other 

qualifying documentation. 

§ 5.69 Country of origin. 

For U.S. Customs and Border 

Protection (CBP) rules regarding country 

of origin marking requirements, see the 

CBP regulations at 19 CFR parts 102 and 

134. 

§ 5.70 Net contents. 

The requirements of this section 

apply to the net contents statement 

required by § 5.63. 

(a) General. The volume of spirits in 

the container must appear on a label as 

a net contents statement. The word 

‘‘liter’’ may be alternatively spelled 

‘‘litre’’ or may be abbreviated as ‘‘L’’. 

The word ‘‘milliliters’’ may be 

abbreviated as ‘‘ml.,’’ ‘‘mL.,’’ or ‘‘ML.’’ 

Net contents in equivalent U.S. 

customary units of measurement and in 

metric equivalents such as centiliters 

may appear on a label and, if used, must 

appear in the same field of vision as the 

metric net contents statement. 

(b) Tolerances. (1) The following 

tolerances are permissible for purposes 

of applying paragraph (a) of this section: 

(i) Errors in measuring. Discrepancies 

due to errors in measuring that occur in 

filling conducted in compliance with 

good commercial practice; 

(ii) Differences in capacity. 

Discrepancies due exclusively to 

differences in the capacity of containers, 

resulting solely from unavoidable 

difficulties in manufacturing the 

containers so as to be of uniform 

capacity, provided that the discrepancy 

does not result from a container design 

that prevents the manufacture of 

containers of an approximately uniform 

capacity; and 

(iii) Differences in atmospheric 

conditions. Discrepancies in measure 

due to differences in atmospheric 

conditions in various places, including 

discrepancies resulting from the 

ordinary and customary exposure of 

alcohol beverage products in containers 

to evaporation, provided that the 

discrepancy is determined to be 

reasonable on a case by case basis. 

(2) Shortages and overages. A 

contents shortage in certain of the 

containers in a shipment may not be 

counted against a contents overage in 

other containers in the same shipment 

for purposes of determining compliance 

with the requirements of this section. 

§ 5.71 Neutral spirits and name of 

commodity. 

(a) In the case of distilled spirits 

(other than cordials, liqueurs, flavored 

neutral spirits, including flavored 

vodka, and distilled spirits specialty 

products) manufactured by blending or 

other processing, if neutral spirits were 

used in the production of the spirits, the 

percentage of neutral spirits so used and 

the name of the commodity from which 

the neutral spirits were distilled must 

appear on a label. The statement of 

percentage and the name of the 

commodity must be in substantially the 

following form: ‘‘ll% neutral spirits 

distilled fromll (insert grain, cane 

products, fruit, or other commodity as 

appropriate)’’; or ‘‘ll % neutral spirits 

(vodka) distilled from ll (insert grain, 

cane products, fruit, or other commodity 

as appropriate)’’; or ‘‘ll % (grain) 

(cane products), (fruit) neutral spirits’’, 

or ‘‘ll % grain spirits.’’ 

(b) In the case of gin manufactured by 

a process of continuous distillation or in 

the case of neutral spirits, a label on the 

container must state the name of the 

commodity from which the gin or 

neutral spirits were distilled. The 

statement of the name of the commodity 

must appear in substantially the 

following form: ‘‘Distilled from grain’’ 

or ‘‘Distilled from cane products’’. 

§ 5.72 Coloring materials. 

The words ‘‘artificially colored’’ must 

appear on a label of any distilled spirits 

product containing synthetic or natural 

materials that primarily contribute 

color, or when information on a label 

conveys the impression that a color was 

derived from a source other than the 

actual source of the color, except that: 

(a) If no coloring material other than 

a color exempt from certification under 

FDA regulations has been added, a 

truthful statement of the source of the 

color may appear in lieu of the words 

‘‘artificially colored,’’ for example, 

‘‘Contains Beta Carotene’’ or ‘‘Colored 

with beet extract.’’ See 21 CFR parts 73 

and 74 for the list of such colors under 

Food and Drug Administration (FDA) 

regulations; 

(b) If no coloring material has been 

added other than one certified as 

suitable for use in foods by the FDA, the 

words ‘‘(to be filled in with name of) 

certified color added’’ or ‘‘Contains 

Certified Color’’ may appear in lieu of 

the words ‘‘artificially colored’’; and 

(c) If no coloring material other than 

caramel has been added, the words 

‘‘colored with caramel,’’ ‘‘contains 

caramel color,’’ or another statement 


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specifying the use of caramel color, may 

appear in lieu of the words ‘‘artificially 

colored.’’ However, no statement of any 

type is required for the use of caramel 

color in brandy, rum, or Tequila, or in 

any type of whisky other than straight 

whisky if used at not more than 2.5 

percent by volume of the finished 

product. 

(d) As provided in § 5.61, the use of 

FD&C Yellow No. 5, carmine, or 

cochineal extract must be specifically 

stated on the label even if the label also 

contains a phrase such as ‘‘contains 

certified color’’ or ‘‘artificially colored.’’ 

§ 5.73 Treatment of whisky or brandy with 

wood. 

The words ‘‘colored and flavored with 

woodll ’’ (inserting ‘‘chips,’’ ‘‘slabs,’’ 

etc., as appropriate) must appear 

immediately adjacent to, and in the 

same size of type as, the class and type 

designation under subpart I of this part 

for whisky and brandy treated, in whole 

or in part, with wood through 

percolation or otherwise during 

distillation or storage, other than 

through contact with an oak barrel. 

However, the statement specified in this 

section is not required in the case of 

brandy treated with an infusion of oak 

chips in accordance with 

§ 5.155(b)(3)(B). 

§ 5.74 Statements of age, storage, and 

percentage. 

(a) General. (1) As defined in § 5.1, 

age is the length of time during which, 

after distillation and before bottling, the 

distilled spirits have been stored in oak 

barrels. For bourbon whisky, rye 

whisky, wheat whisky, malt whisky, or 

rye malt whisky, and straight whiskies 

other than straight corn whisky, aging 

must occur in charred new oak barrels. 

(2) If an age statement is used, it is 

permissible to understate the age of a 

product, but overstatements of age are 

prohibited. However, the age statement 

may not conflict with the standard of 

identity, if aging is required as part of 

the standard of identity. For example, 

the standard of identity for straight rye 

whisky requires that the whisky be aged 

for a minimum of 2 years, so the age 

statement ‘‘Aged 1 year,’’ would be 

prohibited for a product designated as 

‘‘straight’’ rye whisky, even if the spirits 

were actually aged for more than 2 

years, because it is inconsistent with the 

standard of identity. 

(3)The age may be stated in years, 

months, or days. 

(b) Age statements and percentage of 

type statements for whisky. For all 

domestic or foreign whiskies that are 

aged less than 4 years, including blends 

containing a whisky that is aged less 

than 4 years, an age statement and 

percentage of types of whisky statement 

is required to appear on a label, unless 

the whisky is labeled as ‘‘bottled in 

bond’’ in conformity with § 5.88. For all 

other whiskies, the statements are 

optional, but if used, they must conform 

to the formatting requirements listed 

below. Moreover, if the bottler chooses 

to include a statement of age or 

percentage on the label of a product that 

is 4 years old or more and that contains 

neutral spirits, the statement must 

appear immediately adjacent to the 

neutral spirits statement required by 

§ 5.70. The following are the allowable 

formats for the age and percentage 

statements for whisky: 

(1)(i) In the case of whisky, whether 

or not mixed or blended but containing 

no neutral spirits, the age of the 

youngest whisky in the product. The age 

statement must appear substantially as 

follows: ‘‘ll years old’’; and 

(ii) If a whisky is aged in more than 

one container, the label may optionally 

indicate the types of oak containers 

used. 

(2) In the case of whisky containing 

neutral spirits, whether or not mixed or 

blended, if any straight whisky or other 

whisky in the product is less than 4 

years old, the percentage by volume of 

each such whisky and the age of each 

such whisky (the age of the youngest of 

the straight whiskies or other whiskies 

if the product contains two or more of 

either). The age and percentage 

statement for a straight whisky and 

other whisky must appear immediately 

adjacent to the neutral spirits statement 

required by § 5.70 and must read 

substantially as follows: 

(i) If the product contains only one 

straight whisky and no other whisky: 

‘‘ll percent straight whisky ll years 

old;’’ 

(ii) If the product contains more than 

one straight whisky but no other 

whisky: ‘‘ll percent straight whiskies 

ll years or more old.’’ In this case the 

age blank must state the age of the 

youngest straight whisky in the product. 

However, in lieu of the foregoing 

statement, the following statement may 

appear on the label: ‘‘ll percent 

straight whisky ll years old, ll 

percent straight whisky ll years old, 

and ll percent straight whisky ll 

years old’’; 

(iii) If the product contains only one 

straight whisky and one other whisky: 

‘‘ll percent straight whisky ll years 

old, ll percent whisky ll years 

old’’; or 

(iv) If the product contains more than 

one straight whisky and more than one 

other whisky: ‘‘ll percent straight 

whiskies ll years or more old, ll 

percent whiskies ll years or more 

old.’’ In this case, the age blanks must 

state the age of the youngest straight 

whisky and the age of the youngest 

other whisky. However, in lieu of the 

foregoing statement, the following 

statement may appear on the label: 

‘‘ll percent straight whisky ll years 

old, percent straight whisky ll years 

old, ll percent whisky ll years old, 

and ll percent whisky ll years 

old’’; 

(3) In the case of an imported rye 

whisky, wheat whisky, malt whisky, or 

rye malt whisky, a label on the product 

must state each age and percentage in 

the manner and form that would be 

required if the whisky had been made 

in the United States; 

(4) In the case of whisky made in the 

United States and stored in reused oak 

barrels, other than corn whisky and 

light whisky, in lieu of the words ‘‘ll 

years old’’ specified in paragraphs (b)(1) 

and (b)(2) of this section, the period of 

storage in the reused oak barrels must 

appear on the label as follows: ‘‘stored 

ll years in reused cooperage.’’ 

(c) Statements of age for rum, brandy, 

and agave spirits. A statement of age on 

labels of rums, brandies, and agave 

spirits is optional, except that, in the 

case of brandy (other than immature 

brandies, fruit brandies, marc brandy, 

pomace brandy, Pisco brandy, and 

grappa brandy, which are not 

customarily stored in oak barrels) not 

stored in oak barrels for a period of at 

least 2 years, a statement of age must 

appear on the label. Any statement of 

age authorized or required under this 

paragraph must appear substantially as 

follows: ‘‘ll years old,’’ with the 

blank to be filled in with the age of the 

youngest distilled spirits in the product. 

(d) Statement of storage for grain 

spirits. In the case of grain spirits, the 

period of storage in oak barrels may 

appear on a label immediately adjacent 

to the percentage statement required 

under § 5.73, for example: ‘‘ll % grain 

spirits stored ll years in oak barrels.’’ 

(e) Other distilled spirits. (1) 

Statements regarding age or maturity or 

similar statements or representations on 

labels for all other spirits, except neutral 

spirits, are permitted only when the 

distilled spirits are stored in an oak 

barrel and, once dumped from the 

barrel, subjected to no treatment besides 

mixing with water, filtering, and 

bottling. If batches are made from 

barrels of spirits of different ages, the 

label may only state the age of the 

youngest spirits. 

(2) Statements regarding age or 

maturity or similar statements of neutral 

spirits (except for grain spirits as stated 


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in paragraph (c) of this section) are 

prohibited from appearing on any label. 

(f) Other age representations. (1) If a 

representation that is similar to an age 

or maturity statement permitted under 

this section appears on a label, a 

statement of age, in a manner that is 

conspicuous and in characters at least 

half the type size of the representation 

must also appear on each label that 

carries the representation, except in the 

following cases: 

(i) The use of the word ‘‘old’’ or 

another word denoting age as part of the 

brand name of the product is not 

deemed to be an age representation that 

requires a statement of age; and 

(ii) Labels of whiskies and brandies 

(other than immature brandies, pomace 

brandy, marc brandy, Pisco brandy, and 

grappa brandy) not required to bear a 

statement of age, and rum and agave 

spirits aged for not less than 4 years, 

may contain general inconspicuous age, 

maturity or similar representations 

without the label having to bear an age 

statement. 

(2) Distillation dates (which may be 

an exact date or a year) may appear on 

a label of spirits where the spirits are 

manufactured solely through 

distillation. A distillation date may only 

appear if an optional or mandatory age 

statement is used on the label and must 

appear in the same field of vision as the 

age statement. 

Subpart F—Restricted Labeling 

Statements. 

§ 5.81 General. 

(a) Application. The labeling 

practices, statements, and 

representations in this subpart may be 

used on distilled spirits labels only 

when used in compliance with this 

subpart. In addition, if any of the 

practices, statements, or representations 

in this subpart are used elsewhere on 

containers or in packaging, they must 

comply with the requirements of this 

subpart. For purposes of this subpart: 

(1) The term ‘‘label’’ includes all 

labels on distilled spirits containers on 

which mandatory information may 

appear, as set forth in § 5.61(a), as well 

as any other label on the container. 

(2) The term ‘‘container’’ includes all 

parts of the distilled spirits container, 

including any part of a distilled spirits 

container on which mandatory 

information may appear, as well as 

those parts of the container on which 

information does not satisfy mandatory 

labeling requirements, as set forth in 

§ 5.61(b). 

(3) The term ‘‘packaging’’ includes 

any carton, case, carrier, individual 

covering or other packaging of such 

containers used for sale at retail, but 

does not include shipping cartons or 

cases that are not intended to 

accompany the container to the 

consumer. 

(b) Statement or representation. For 

purposes of the practices in this subpart, 

the term ‘‘statement or representation’’ 

includes any statement, design, device, 

or representation, and includes pictorial 

or graphic designs or representations as 

well as written ones. The term 

‘‘statement or representation’’ includes 

explicit and implicit statements and 

representations. 

Food Allergen Labeling 

§ 5.82 Voluntary disclosure of major food 

allergens. 

(a) Definitions. For purposes of this 

section, the following terms or phrases 

have the meanings indicated. 

(1) Major food allergen means any of 

the following: 

(i) Milk, egg, fish (for example, bass, 

flounder, or cod), Crustacean shellfish 

(for example, crab, lobster, or shrimp), 

tree nuts (for example, almonds, pecans, 

or walnuts), wheat, peanuts, and 

soybeans; or 

(ii) A food ingredient that contains 

protein derived from a food specified in 

paragraph (a)(1)(i) of this section, 

except: 

(A) Any highly refined oil derived 

from a food specified in paragraph 

(a)(1)(i) of this section and any 

ingredient derived from such highly 

refined oil; or 

(B) A food ingredient that is exempt 

from major food allergen labeling 

requirements pursuant to a petition for 

exemption approved by the Food and 

Drug Administration (FDA) under 21 

U.S.C. 343(w)(6) or pursuant to a notice 

submitted to FDA under 21 U.S.C. 

343(w)(7), provided that the food 

ingredient meets the terms or 

conditions, if any, specified for that 

exemption. 

(2) Name of the food source from 

which each major food allergen is 

derived means the name of the food as 

listed in paragraph (a)(1)(i) of this 

section, except that: 

(i) In the case of a tree nut, it means 

the name of the specific type of nut (for 

example, almonds, pecans, or walnuts); 

and 

(ii) In the case of Crustacean shellfish, 

it means the name of the species of 

Crustacean shellfish (for example, crab, 

lobster, or shrimp); and 

(iii) The names ‘‘egg’’ and ‘‘peanuts,’’ 

as well as the names of the different 

types of tree nuts, may be expressed in 

either the singular or plural form, and 

the name ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’ 

may be used instead of ‘‘soybeans.’’ 

(b) Voluntary labeling standards. 

Major food allergens used in the 

production of a distilled spirits product 

may, on a voluntary basis, be declared 

on any label affixed to the container. 

However, if any one major food allergen 

is voluntarily declared, all major food 

allergens used in production of the 

distilled spirits product, including 

major food allergens used as fining or 

processing agents, must be declared, 

except when covered by a petition for 

exemption approved by the appropriate 

TTB officer under § 5.83. The major 

food allergens declaration must consist 

of the word ‘‘Contains’’ followed by a 

colon and the name of the food source 

from which each major food allergen is 

derived (for example, ‘‘Contains: egg’’). 

§ 5.83 Petitions for exemption from major 

food allergen labeling. 

(a) Submission of petition. Any 

person may petition the appropriate 

TTB officer to exempt a particular 

product or class of products from the 

labeling requirements of § 5.82. The 

burden is on the petitioner to provide 

scientific evidence (as well as the 

analytical method used to produce the 

evidence) that demonstrates that the 

finished product or class of products, as 

derived by the method specified in the 

petition, either: 

(1) Does not cause an allergic 

response that poses a risk to human 

health; or 

(2) Does not contain allergenic protein 

derived from one of the foods identified 

in § 5.82(a)(1)(i), even though a major 

food allergen was used in production. 

(b) Decision on petition. TTB will 

approve or deny a petition for 

exemption submitted under paragraph 

(a) of this section in writing within 180 

days of receipt of the petition. If TTB 

does not provide a written response to 

the petitioner within that 180-day 

period, the petition will be deemed 

denied, unless an extension of time for 

decision is mutually agreed upon by the 

appropriate TTB officer and the 

petitioner. TTB may confer with the 

Food and Drug Administration (FDA) on 

petitions for exemption, as appropriate 

and as FDA resources permit. TTB may 

require the submission of product 

samples and other additional 

information in support of a petition; 

however, unless required by TTB, the 

submission of samples or additional 

information by the petitioner after 

submission of the petition will be 

treated as the withdrawal of the initial 

petition and the submission of a new 

petition. An approval or denial under 

this section will constitute final agency 

action. 


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(c) Resubmission of a petition. After a 

petition for exemption is denied under 

this section, the petitioner may resubmit 

the petition along with supporting 

materials for reconsideration at any 

time. TTB will treat this submission as 

a new petition. 

(d) Availability of information—(1) 

General. TTB will promptly post to its 

website (https://www.ttb.gov) all 

petitions received under this section, as 

well as TTB’s responses to those 

petitions. Any information submitted in 

support of the petition that is not posted 

to the TTB website will be available to 

the public pursuant to the Freedom of 

Information Act, at 5 U.S.C. 552, except 

where a request for confidential 

treatment is granted under paragraph 

(d)(2) of this section. 

(2) Requests for confidential treatment 

of business information. A person who 

provides trade secrets or other 

commercial or financial information in 

connection with a petition for 

exemption under this section may 

request that TTB give confidential 

treatment to that information. A failure 

to request confidential treatment at the 

time the information in question is 

submitted to TTB will constitute a 

waiver of confidential treatment. A 

request for confidential treatment of 

information under this section must 

conform to the following standards: 

(i) The request must be in writing; 

(ii) The request must clearly identify 

the information to be kept confidential; 

(iii) The request must relate to 

information that constitutes trade 

secrets or other confidential commercial 

or financial information regarding the 

business transactions of an interested 

person, the disclosure of which would 

cause substantial harm to the 

competitive position of that person; 

(iv) The request must set forth the 

reasons why the information should not 

be disclosed, including the reasons why 

the disclosure of the information would 

prejudice the competitive position of 

the interested person; and 

(v) The request must be supported by 

a signed statement by the interested 

person, or by an authorized officer or 

employee of that person, certifying that 

the information in question is a trade 

secret or other confidential commercial 

or financial information and that the 

information is not already in the public 

domain. 

Production Claims 

§ 5.84 Use of the term ‘‘organic.’’ 

Use of the term ‘‘organic’’ is permitted 

if any such use complies with United 

States Department of Agriculture 

(USDA) National Organic Program rules 

(7 CFR part 205), as interpreted by the 

USDA. 

§ 5.85 [Reserved] 

§ 5.86 [Reserved] 

Other Label Terms 

§ 5.87 ‘‘Barrel Proof’’ and similar terms. 

(a) The term ‘‘barrel proof’’ or ‘‘cask 

strength’’ may be used to refer to 

distilled spirits stored in wood barrels 

only when the bottling proof is not more 

than two degrees lower than the proof 

of the spirits when the spirits are 

dumped from the barrels. 

(b) The term ‘‘original proof,’’ 

‘‘original barrel proof,’’ ‘‘original cask 

strength,’’ or ‘‘entry proof’’ may be used 

only if the distilled spirits were stored 

in wooden barrels and the proof of the 

spirits entered into the barrel and the 

proof of the bottled spirits are the same. 

§ 5.88 Bottled in bond. 

(a) The term ‘‘bond,’’ ‘‘bonded,’’ 

‘‘bottled in bond,’’ or ‘‘aged in bond,’’ or 

phrases containing these or synonymous 

terms, may be used (including as part of 

the brand name) only if the distilled 

spirits are: 

(1) Composed of the same kind (type, 

if one is applicable to the spirits, 

otherwise class) of spirits distilled from 

the same class of materials; 

(2) Distilled in the same distilling 

season (as defined in § 5.1) by the same 

distiller at the same distillery. 

(3) Stored for at least 4 years in 

wooden containers wherein the spirits 

have been in contact with the wood 

surface, except for vodka, which must 

be stored for at least 4 years in wooden 

containers coated or lined with paraffin 

or other substance which will preclude 

contact of the spirits with the wood 

surface, and except for gin, which must 

be stored in paraffin-lined or unlined 

wooden containers for at least 4 years; 

(4) Unaltered from their original 

condition or character by the addition or 

subtraction of any substance other than 

by filtration, chill proofing, or other 

physical treatments (which do not 

involve the addition of any substance 

which will remain in the finished 

product or result in a change in class or 

type); 

(5) Reduced in proof by the addition 

of only pure water to 50 percent alcohol 

by volume (100 degrees of proof); and 

(6) Bottled at 50 percent alcohol by 

volume (100 degrees of proof). 

(b) Imported spirits labeled as 

‘‘bottled in bond’’ or other synonymous 

term described above must be 

manufactured in accordance with 

paragraphs (a)(1) through (6) of this 

section and may only be so labeled if 

the laws and regulations of the country 

in which the spirits are manufactured 

authorize the bottling of spirits in bond 

and require or specifically authorize 

such spirits to be so labeled. The 

‘‘bottled in bond’’ or synonymous 

statement must be immediately 

followed, in the same font and type size, 

by the name of the country under whose 

laws and regulations such distilled 

spirits were so bottled. 

(c) Domestically manufactured spirits 

labeled as ‘‘bottled in bond’’ or with 

some other synonymous statement must 

bear the real name of the distillery or 

the trade name under which the distiller 

distilled and warehoused the spirits, 

and the number of the distilled spirits 

plant in which distilled, and the 

number of the distilled spirits plant in 

which bottled. The label may also bear 

the name or trade name of the bottler. 

§ 5.89 Multiple distillation claims. 

(a) Truthful statements about the 

number of distillations, such as ‘‘double 

distilled,’’ ‘‘distilled three times,’’ or 

similar terms to convey multiple 

distillations, may be used if they are 

truthful statements of fact. For the 

purposes of this section only, the term 

‘‘distillation’’ means a single run 

through a pot still or a single run 

through a column of a column (reflux) 

still. For example, if a column still has 

three separate columns, one complete 

additional run through the system 

would constitute three additional 

distillations. 

(b) The number of distillations may be 

understated but may not be overstated. 

§ 5.90 Terms related to Scotland. 

(a) The words ‘‘Scotch,’’ ‘‘Scots,’’ 

‘‘Highland,’’ or ‘‘Highlands,’’ and 

similar words connoting, indicating, or 

commonly associated with Scotland, 

may be used to designate only distilled 

spirits wholly manufactured in 

Scotland, except that the term ‘‘Scotch 

whisky’’ may appear in the designation 

for a flavored spirit (‘‘Flavored Scotch 

Whisky’’) or in a truthful statement of 

composition (‘‘Scotch whisky with 

natural flavors’’) where the base 

distilled spirit meets the requirements 

for a Scotch whisky designation, 

regardless of where the finished product 

is manufactured. 

(b) In accordance with § 5.127, 

statements relating to government 

supervision may appear on Scotch 

whisky containers only if such labeling 

statements are required or specifically 

authorized by the applicable regulations 

of the United Kingdom. 


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§ 5.91 Use of the term ‘‘pure.’’ 

Distilled spirits labels, containers, or 

packaging may not bear the word 

‘‘pure’’ unless it: 

(a) Refers to a particular ingredient 

used in the production of the distilled 

spirits, and is a truthful representation 

about that ingredient; 

(b) Is part of the bona fide name of a 

permittee or retailer for which the 

distilled spirits are bottled; or 

(c) Is part of the bona fide name of the 

permittee that bottled the distilled 

spirits. 

Subpart G—Prohibited Labeling 

Practices 

§ 5.101 General. 

(a) Application. The prohibitions set 

forth in this subpart apply to any 

distilled spirits label, container, or 

packaging. For purposes of this subpart: 

(1) The term ‘‘label’’ includes all 

labels on distilled spirits containers on 

which mandatory information may 

appear, as set forth in § 5.61(a), as well 

as any other label on the container; 

(2) The term ‘‘container’’ includes all 

parts of the distilled spirits container, 

including any part of a distilled spirits 

container on which mandatory 

information may appear, as well as 

those parts of the container on which 

information does not satisfy mandatory 

labeling requirements, as set forth in 

§ 5.61(b); and 

(3) The term ‘‘packaging’’ includes 

any carton, case, carrier, individual 

covering or other packaging of such 

containers used for sale at retail, but 

does not include shipping cartons or 

cases that are not intended to 

accompany the container to the 

consumer. 

(b) Statement or representation. For 

purposes of the practices in this subpart, 

the term ‘‘statement or representation’’ 

includes any statement, design, device, 

or representation, and includes pictorial 

or graphic designs or representations as 

well as written ones. The term 

‘‘statement or representation’’ includes 

explicit and implicit statements and 

representations. 

§ 5.102 False or untrue statements. 

Distilled spirits labels, containers, or 

packaging may not contain any 

statement or representation that is false 

or untrue in any particular. 

§ 5.103 Obscene or indecent depictions. 

Distilled spirits labels, containers, or 

packaging may not contain any 

statement, design, device, picture, or 

representation that is obscene or 

indecent. 

Subpart H—Labeling Practices That 

Are Prohibited If They Are Misleading 

§ 5.121 General. 

(a) Application. The labeling practices 

that are prohibited if misleading set 

forth in this subpart apply to any 

distilled spirits label, container, or 

packaging. For purposes of this subpart: 

(1) The term ‘‘label’’ includes all 

labels on distilled spirits containers on 

which mandatory information may 

appear, as set forth in § 5.61(a), as well 

as any other label on the container; 

(2) The term ‘‘container’’ includes all 

parts of the distilled spirits container, 

including any part of a distilled spirits 

container on which mandatory 

information may appear, as well as 

those parts of the container on which 

information does not satisfy mandatory 

labeling requirements, as set forth in 

§ 5.61(b); and 

(3) The term ‘‘packaging’’ includes 

any carton, case, carrier, individual 

covering or other packaging of such 

containers used for sale at retail, but 

does not include shipping cartons or 

cases that are not intended to 

accompany the container to the 

consumer. 

(b) Statement or representation. For 

purposes of this subpart, the term 

‘‘statement or representation’’ includes 

any statement, design, device, or 

representation, and includes pictorial or 

graphic designs or representations as 

well as written ones. The term 

‘‘statement or representation’’ includes 

explicit and implicit statements and 

representations. 

§ 5.122 Misleading statements or 

representations. 

(a) General prohibition. Distilled 

spirits labels, containers, or packaging 

may not contain any statement or 

representation, irrespective of falsity, 

that is misleading to consumers as to the 

age, origin, identity, or other 

characteristics of the distilled spirits, or 

with regard to any other material factor. 

(b) Ways in which statements or 

representations may be found to be 

misleading. (1) A statement or 

representation is prohibited, 

irrespective of falsity, if it directly 

creates a misleading impression, or if it 

does so indirectly through ambiguity, 

omission, inference, or by the addition 

of irrelevant, scientific, or technical 

matter. For example, an otherwise 

truthful statement may be misleading 

because of the omission of material 

information, the disclosure of which is 

necessary to prevent the statement from 

being misleading. 

(2) All claims, whether implicit or 

explicit, must have a reasonable basis in 

fact. Any claim on distilled spirits 

labels, containers, or packaging that 

does not have a reasonable basis in fact, 

or cannot be adequately substantiated 

upon the request of the appropriate TTB 

officer, is considered misleading. 

§ 5.123 Guarantees. 

Distilled spirits labels, containers, or 

packaging may not contain any 

statement relating to guarantees if the 

appropriate TTB officer finds it is likely 

to mislead the consumer. However, 

money-back guarantees are not 

prohibited. 

§ 5.124 Disparaging statements. 

(a) General. Distilled spirits labels, 

containers, or packaging may not 

contain any false or misleading 

statement that explicitly or implicitly 

disparages a competitor’s product. 

(b) Truthful and accurate 

comparisons. This section does not 

prevent truthful and accurate 

comparisons between products (such as, 

‘‘Our liqueur contains more strawberries 

than Brand X’’) or statements of opinion 

(such as, ‘‘We think our rum tastes 

better than any other distilled spirits on 

the market’’). 

§ 5.125 Tests or analyses. 

Distilled spirits labels, containers, or 

packaging may not contain any 

statement or representation of or 

relating to analyses, standards, or tests, 

whether or not it is true, that is likely 

to mislead the consumer. An example of 

such a misleading statement is ‘‘tested 

and approved by our research 

laboratories’’ if the testing and approval 

does not in fact have any significance. 

§ 5.126 Depictions of government 

symbols. 

Representations of the armed forces 

and flags. Distilled spirits labels, 

containers, or packaging may not show 

an image of any government’s flag or 

any representation related to the armed 

forces of the United States if the 

representation, standing alone or 

considered together with any additional 

language or symbols on the label, 

creates a false or misleading impression 

that the product was endorsed by, made 

by, used by, or made under the 

supervision of, the government 

represented by that flag or by the armed 

forces of the United States. This section 

does not prohibit the use of a flag as part 

of a claim of American origin or another 

country of origin. 


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§ 5.127 [Reserved] 

§ 5.128 [Reserved] 

§ 5.129 Health-related statements. 

(a) Definitions. When used in this 

section, the following terms have the 

meaning indicated: 

(1) Health-related statement means 

any statement related to health (other 

than the warning statement required 

under part 16 of this chapter) and 

includes statements of a curative or 

therapeutic nature that, expressly or by 

implication, suggest a relationship 

between the consumption of alcohol, 

distilled spirits, or any substance found 

within the distilled spirits product, and 

health benefits or effects on health. The 

term includes both specific health 

claims and general references to alleged 

health benefits or effects on health 

associated with the consumption of 

alcohol, distilled spirits, or any 

substance found within the distilled 

spirits, as well as health-related 

directional statements. The term also 

includes statements and claims that 

imply that a physical or psychological 

sensation results from consuming the 

distilled spirits, as well as statements 

and claims of nutritional value (for 

example, statements of vitamin content). 

(2) Specific health claim means a type 

of health-related statement that, 

expressly or by implication, 

characterizes the relationship of 

distilled spirits, alcohol, or any 

substance found within the distilled 

spirits, to a disease or health-related 

condition. Implied specific health 

claims include statements, symbols, 

vignettes, or other forms of 

communication that suggest, within the 

context in which they are presented, 

that a relationship exists between 

alcohol, distilled spirits, or any 

substance found within the distilled 

spirits, and a disease or health-related 

condition. 

(3) Health-related directional 

statement means a type of health-related 

statement that directs or refers 

consumers to a third party or other 

source for information regarding the 

effects on health of distilled spirits or 

alcohol consumption. 

(b) Rules for labeling—(1) Healthrelated statements. In general, distilled 

spirits may not contain any healthrelated statement that is untrue in any 

particular or tends to create a 

misleading impression as to the effects 

on health of alcohol consumption. TTB 

will evaluate such statements on a caseby-case basis and may require as part of 

the health-related statement a 

disclaimer or some other qualifying 

statement to dispel any misleading 

impression conveyed by the healthrelated statement. 

(2) Specific health claims. (i) TTB will 

consult with the Food and Drug 

Administration (FDA), as needed, on the 

use of a specific health claim on the 

distilled spirits. If FDA determines that 

the use of such a labeling claim is a drug 

claim that is not in compliance with the 

requirements of the Federal Food, Drug, 

and Cosmetic Act, TTB will not approve 

the use of that specific health claim on 

the distilled spirits. 

(ii) TTB will approve the use of a 

specific health claim on a distilled 

spirits label only if the claim is truthful 

and adequately substantiated by 

scientific or medical evidence; is 

sufficiently detailed and qualified with 

respect to the categories of individuals 

to whom the claim applies; adequately 

discloses the health risks associated 

with both moderate and heavier levels 

of alcohol consumption; and outlines 

the categories of individuals for whom 

any levels of alcohol consumption may 

cause health risks. This information 

must appear as part of the specific 

health claim. 

(3) Health-related directional 

statements. A health-related directional 

statement is presumed misleading 

unless it: 

(i) Directs consumers in a neutral or 

other non-misleading manner to a third 

party or other source for balanced 

information regarding the effects on 

health of distilled spirits or alcohol 

consumption; and 

(ii)(A) Includes as part of the healthrelated directional statement the 

following disclaimer: ‘‘This statement 

should not encourage you to drink or to 

increase your alcohol consumption for 

health reasons;’’ or 

(B) Includes as part of the healthrelated directional statement some other 

qualifying statement that the 

appropriate TTB officer finds is 

sufficient to dispel any misleading 

impression conveyed by the healthrelated directional statement. 

§ 5.130 Appearance of endorsement. 

(a) General. Distilled spirits labels, 

containers, or packaging may not 

include the name, or the simulation or 

abbreviation of the name, of any living 

individual of public prominence, or an 

existing private or public organization, 

or any graphic, pictorial, or emblematic 

representation of the individual or 

organization, if its use is likely to lead 

a consumer to falsely believe that the 

product has been endorsed, made, or 

used by, or produced for, or under the 

supervision of, or in accordance with 

the specifications of, such individual or 

organization. This section does not 

prohibit the use of such names where 

the individual or organization has 

provided authorization for their use. 

(b) Disclaimers. Statements or other 

representations do not violate this 

section if, taken as a whole, they create 

no misleading impression as to an 

implied endorsement either because of 

the context in which they are presented 

or because of the use of an adequate 

disclaimer. 

(c) Exception. This section does not 

apply to the use of the name of any 

person engaged in business as a 

distiller, rectifier (processor), blender, or 

other producer, or as an importer, 

wholesaler, retailer, bottler, or 

warehouseman of distilled spirits. This 

section also does not apply to the use by 

any person of a trade or brand name that 

is the name of any living individual of 

public prominence or existing private or 

public organization, provided such 

trade or brand name was used by the 

industry member or its predecessors in 

interest prior to August 29, 1935. 

Subpart I—Standards of Identity for 

Distilled Spirits 

§ 5.141 The standards of identity in 

general. 

(a) General. Distilled spirits are 

divided, for labeling purposes, into 

classes, which are further divided into 

specific types. As set forth in § 5.63, a 

distilled spirits product label must bear 

the appropriate class, type or other 

designation. The standards that define 

the classes and types are known as the 

‘‘standards of identity.’’ The classes and 

types of distilled spirits set forth in this 

subpart apply only to distilled spirits for 

beverage or other nonindustrial 

purposes. 

(b) Rules. (1) Unless otherwise 

specified, when a standard of identity 

states that a mash is of a particular 

ingredient (such as ‘‘fermented mash of 

grain’’), the mash must be made entirely 

of that ingredient without the addition 

of other fermentable ingredients. 

(2) Some distilled spirits products 

may conform to the standards of 

identity of more than one class. Such 

products may be designated with any 

single class designation defined in this 

subpart to which the products conform. 

(c) Designating with both class and 

type. If a product is designated with 

both the class and the type, the type 

designation must be as conspicuous as 

the class designation, and must appear 

in the same field of vision. 

(d) Words in a designation. All words 

in a designation must be similarly 

conspicuous and must appear together. 


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Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 7595 

§ 5.142 Neutral spirits or alcohol. 

(a) The class neutral spirits. ‘‘Neutral 

spirits’’ or ‘‘alcohol’’ are distilled spirits 

distilled from any suitable material at or 

above 95 percent alcohol by volume 

(190° proof), and, if bottled, bottled at 

not less than 40 percent alcohol by 

volume (80° proof). Neutral spirits other 

than the type ‘‘grain spirits’’ may be 

designated as ‘‘neutral spirits’’ or 

‘‘alcohol’’ on a label. Neutral spirits 

(other than the type ‘‘grain spirits’’) may 

not be aged in wood barrels at any time. 

(b) Types. The following chart lists 

the types of neutral spirits and the rules 

that apply to the type designation. 

Type designation Standards 

(1) Vodka ................................................. Neutral spirits which may be treated with up to two grams per liter of sugar and up to one gram per 

liter of citric acid. Products to be labeled as vodka may not be aged or stored in wood barrels at 

any time except when stored in paraffin-lined wood barrels and labeled as bottled in bond pursuant 

to § 5.88. Vodka treated and filtered with not less than one ounce of activated carbon or activated 

charcoal per 100 wine gallons of spirits may be labeled as ‘‘charcoal filtered.’’ Addition of any other 

flavoring or blending materials changes the classification to flavored vodka or to a distilled spirits 

specialty product, as appropriate. Vodka must be designated on the label as ‘‘neutral spirits,’’ ‘‘alcohol,’’ or ‘‘vodka’’. 

(2) Grain spirits ........................................ Neutral spirits distilled from a fermented mash of grain and stored in oak barrels. ‘‘Grain spirits’’ must 

be designated as such on the label. Grain spirits may not be designated as ‘‘neutral spirits’’ or ‘‘alcohol’’ on the label. 

§ 5.143 Whisky. 

(a) The class whisky. ‘‘Whisky’’ or 

‘‘whiskey’’ is distilled spirits that is an 

alcoholic distillate from a fermented 

mash of any grain distilled at less than 

95 percent alcohol by volume (190° 

proof) having the taste, aroma, and 

characteristics generally attributed to 

whisky, stored in oak barrels (except 

that corn whisky need not be so stored), 

and bottled at not less than 40 percent 

alcohol by volume (80° proof), and also 

includes mixtures of such distillates for 

which no specific standards of identity 

are prescribed. 

(b) Label designations. The word 

whisky may be spelled as either 

‘‘whisky’’ or ‘‘whiskey’’. The place, 

State, or region where the whisky was 

distilled may appear as part of the 

designation on the label if the 

distillation and any required aging took 

place in that location (e.g., ‘‘New York 

Bourbon Whisky’’ must be distilled and 

aged in the State of New York); 

however, blending and bottling need not 

have taken place in the same place, 

State, or region. However, if any whisky 

is made partially from whisky distilled 

in a country other than that indicated by 

the type designation, the label must 

indicate the percentage of such whisky 

and the country where that whisky was 

distilled. Additionally, the label of 

whisky that does not meet one of the 

standards for specific types of whisky 

and that is comprised of components 

distilled in more than one country must 

contain a statement of composition 

indicating the country of origin of each 

component (such as ‘‘Whisky—50% 

from Japan, 50% from the United 

States’’). The word ‘‘bourbon’’ may not 

be used to describe any whisky or 

whisky-based distilled spirits not 

distilled and aged in the United States. 

The whiskies defined in paragraphs 

(c)(2) through (6) and (10) through (14) 

of this section are distinctive products 

of the United States and must have the 

country of origin stated immediately 

adjacent to the type designation if it is 

distilled outside of the United States, or 

the whisky designation must be 

proceeded by the term ‘‘American type’’ 

if the country of origin appears 

elsewhere on the label. For example, 

‘‘Brazilian Corn Whisky,’’ ‘‘Rye Whisky 

distilled in Sweden,’’ and ‘‘Blended 

Whisky—Product of Japan’’ are 

statements that meet this country of 

origin requirement. ‘‘Light whisky’’, 

‘‘Blended light whisky’’, and ‘‘Whisky 

distilled from bourbon (rye, wheat, malt, 

rye malt, or other named grain) mash’’ 

may only be produced in the United 

States. 

(c) Types of whisky. The following 

tables set out the designations for 

whisky. Table 1 sets forth the standards 

for whisky that are defined based on 

production, storage, and processing 

standards, while Table 2 sets forth rules 

for the types of whisky that are defined 

as distinctive products of certain foreign 

countries. For the whiskies listed in 

Table 1, a domestic whisky may be 

labeled with the designation listed, 

when it complies with the production 

standards in the subsequent columns. 

The ‘‘source’’ column indicates the 

source of the grain mash used to make 

the whisky. The ‘‘distillation proof’’ 

indicates the allowable distillation proof 

for that type. The ‘‘storage’’ column 

indicates the type of packages (barrels) 

in which the spirits must be stored and 

limits for the proof of the spirits when 

entering the packages. The ‘‘neutral 

spirits permitted’’ column indicates 

whether neutral spirits may be used in 

the product in their original state (and 

not as vehicles for flavoring materials), 

and if so, how much may be used. The 

‘‘harmless coloring, flavoring, blending 

materials permitted’’ column indicates 

whether harmless coloring, flavoring, or 

blending materials, other than neutral 

spirits in their original form, described 

in § 5.142, may be used in the product. 

The use of the word ‘‘straight’’ is a 

further designation of a type, and is 

optional. 

TABLE 1 TO PARAGRAPH (c)—TYPES OF WHISKY AND PRODUCTION, STORAGE, AND PROCESSING STANDARDS

Type Source Distillation proof Storage Neutral spirits 

permitted 

Allowable coloring, 

flavoring, blending 

materials permitted 

(1) Whisky, which may be used as 

the designation for any of the 

type designations under the 

class ‘‘whisky,’’ or may be used 

as the designation if the whisky 

does not meet one of the type 

designations but satisfies the 

class designation.

Fermented grain mash ................ Less than 190° .......... Oak barrels with 

no minimum 

time requirement.

No .............................. Yes. 


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7596 Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 

TABLE 1 TO PARAGRAPH (c)—TYPES OF WHISKY AND PRODUCTION, STORAGE, AND PROCESSING STANDARDS— 

Continued 

Type Source Distillation proof Storage Neutral spirits 

permitted 

Allowable coloring, 

flavoring, blending 

materials permitted 

(2) Bourbon Whisky, Rye Whisky, 

Wheat Whisky, Malt Whisky, Rye 

Malt Whisky, or [name of other 

grain] Whisky.

Fermented mash of not less than 

51%, respectively: Corn, Rye, 

Wheat, Malted Barley, Malted 

Rye Grain, [Other grain].

160° or less ............... Charred new oak 

barrels at 125° 

or less.

No .............................. Yes, except for bourbon whisky. 

(3) Corn Whisky. (Whisky conforming to this standard must be 

designated as ‘‘corn whisky.’’).

Fermented mash of not less than 

80% corn.

160° or less ............... Required only if 

age is claimed 

on the label. If 

stored, must be 

stored at 125° 

or less in used 

or uncharred 

new oak barrels.

No .............................. Yes. 

(4) Straight Whisky ......................... Fermented mash of less than 

51% corn, rye, wheat, malted 

barley, malted rye [or other] 

grain. (Includes mixtures of 

straight whiskies made in the 

same state.).

160° or less ............... Charred new oak 

barrels at 125° 

or less for a 

minimum of 2 

years.

No .............................. No. 

(5) Straight Bourbon Whisky, 

Straight Rye Whisky, Straight 

Wheat Whisky, Straight Malt 

Whisky, or Straight Rye Malt 

Whisky.

Fermented mash of not less than 

51%, respectively: Corn, Rye, 

Wheat, Malted Barley, Malted 

Rye Grain.

160° or less ............... Charred new oak 

barrels at 125° 

or less for a 

minimum of 2 

years.

No .............................. No. 

(6) Straight Corn Whisky ................ Fermented mash of not less than 

80% corn.

160° or less ............... 125° or less in 

used or 

uncharred new 

oak barrels for 

a minimum of 2 

years.

No .............................. No. 

(7) Whisky distilled from Bourbon/ 

Rye/Wheat/Malt/Rye Malt/[Name 

of other grain] mash.

Fermented mash of not less than 

51%, respectively: Corn, Rye, 

Wheat, Malted Barley, Malted 

Rye Grain, [Other grain].

160° or less ............... Used oak barrels No .............................. Yes. 

(8) Light Whisky .............................. Fermented grain mash ................ More than 160° ......... Used or 

uncharred new 

oak barrels.

No .............................. Yes. 

(9) Blended Light Whisky (Light 

Whisky—a blend).

Light whisky blended with less 

than 20% Straight Whisky on a 

proof gallon basis.

Blend ......................... Will contain a 

blend.

No .............................. Yes. 

(10) Blended Whisky (Whisky—a 

blend).

At least 20% Straight Whisky on 

a proof gallon basis plus Whisky or Neutral Spirits alone or in 

combination.

160° or less ............... Will contain a 

blend of spirits, 

some stored 

and some not 

stored.

Maximum of 80% on 

a proof gallon basis.

Yes. 

(11) Blended Bourbon Whisky, 

Blended Rye Whisky, Blended 

Wheat Whisky, Blended Malt 

Whisky, Blended Rye Malt Whisky, Blended Corn Whisky (or 

Whisky—a blend).

At least 51% on a proof gallon 

basis of: Straight Bourbon, 

Rye, Wheat, Malt, Rye Malt, or 

Corn Whisky; the rest comprised of Whisky or Neutral 

Spirits alone or in combination.

Blend ......................... Will contain a 

blend of spirits, 

some stored 

and some not 

stored.

Maximum of 49% on 

a proof gallon basis.

Yes. 

(12) Blend of Straight Whiskies 

(Blended Straight Whiskies).

Mixture of Straight Whiskies that 

does not conform to ‘‘Straight 

Whisky’’.

160° or less ............... Will contain a 

blend of spirits 

which were 

aged at least 2 

years.

No, except as part of 

a flavor.

Yes. 

(13) Blended Straight Bourbon 

Whiskies, Blended Straight Rye 

Whiskies, Blended Straight 

Wheat Whiskies, Blended 

Straight Malt Whiskies, Blended 

Straight Rye Malt Whiskies, 

Blended Straight Corn Whiskies, 

(or a blend of straight whiskies).

Mixture of Straight Whiskies of 

the same named type produced in different states or 

produced in the same state but 

contains coloring, flavoring or 

blending material.

160° or less ............... Will contain a 

blend of spirits 

which were 

aged at least 2 

years.

No, except as part of 

a flavor.

Yes. 

(14) Spirit Whisky ........................... Mixture of Neutral Spirits and 5% 

or more on a proof gallon 

basis of: Whisky or Straight 

Whisky or a combination of 

both. The Straight Whisky 

component must be less than 

20% on a proof gallon basis.

Blend ......................... Will contain a 

blend of spirits, 

some stored 

and some not 

stored.

Maximum of 95% on 

a proof gallon basis.

Yes. 


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TABLE 2 TO PARAGRAPH (c)—TYPES OF WHISKY THAT ARE DISTINCTIVE PRODUCTS

(16) Scotch whisky .................................. Whisky which is a distinctive product of Scotland, manufactured in Scotland in compliance with the 

laws of the United Kingdom regulating the manufacture of Scotch whisky for consumption in the 

United Kingdom: Provided, That if such product is a mixture of whiskies, such mixture is ‘‘blended 

Scotch whisky’’ or ‘‘Scotch whisky—a blend’’. 

(17) Irish whisky ...................................... Whisky which is a distinctive product of Ireland, manufactured either in the Republic of Ireland or in 

Northern Ireland, in compliance with their laws regulating the manufacture of Irish whisky for home 

consumption: Provided, That if such product is a mixture of whiskies, such mixture is ‘‘blended Irish 

whisky’’ or ‘‘Irish whisky—a blend’’. 

(18) Canadian whisky .............................. Whisky which is a distinctive product of Canada, manufactured in Canada in compliance with the 

laws of Canada regulating the manufacture of Canadian whisky for consumption in Canada: Provided, That if such product is a mixture of whiskies, such mixture is ‘‘blended Canadian whisky’’ or 

‘‘Canadian whisky—a blend’’. 

§ 5.144 Gin. 

(a) The class gin. ‘‘Gin’’ is distilled 

spirits made by original distillation from 

mash, or by redistillation of distilled 

spirits, or by mixing neutral spirits, with 

or over juniper berries and, optionally, 

with or over other aromatics, or with or 

over extracts derived from infusions, 

percolations, or maceration of such 

materials, and includes mixtures of gin 

and neutral spirits. It must derive its 

main characteristic flavor from juniper 

berries and be bottled at not less than 40 

percent alcohol by volume (80° proof). 

Gin may be aged in oak containers. 

(b) Distilled gin. Gin made exclusively 

by original distillation or by 

redistillation may be further designated 

as ‘‘distilled,’’ ‘‘Dry,’’ ‘‘London,’’ ‘‘Old 

Tom’’ or some combination of these four 

terms. 

§ 5.145 Brandy. 

(a) The class brandy. ‘‘Brandy’’ is 

spirits that are distilled from the 

fermented juice, mash, or wine of fruit, 

or from the residue thereof, distilled at 

less than 95 percent alcohol by volume 

(190° proof) having the taste, aroma, and 

characteristics generally attributed to 

the product, and bottled at not less than 

40 percent alcohol by volume (80° 

proof). 

(b) Label designations. Brandy 

conforming to one of the type 

designations must be designated with 

the type name or specific designation 

specified in the requirements for that 

type. The term ‘‘brandy’’ without further 

qualification (such as ‘‘peach’’ or 

‘‘marc’’) may only be used as a 

designation on labels of grape brandy as 

defined in paragraph (c)(1) of this 

section. Brandy conforming to one of 

the type designations defined in 

paragraphs (c)(1) through (12) of this 

section must be designated on the label 

with the type name unless a specific 

designation is included in the 

requirements for that type. Brandy, or 

mixtures thereof, not conforming to any 

of the types defined in this section must 

be designated on the label as ‘‘brandy’’ 

followed immediately by a truthful and 

adequate statement of composition. 

(c) Types. Paragraphs (c)(1) through 

(12) of this section set out the types of 

brandy and the standards for each type. 

Type Standards 

(1) Fruit brandy ........................................ Brandy distilled solely from the fermented juice or mash of whole, sound, ripe fruit, or from standard 

grape or other fruit wine, with or without the addition of not more than 20 percent by weight of the 

pomace of such juice or wine, or 30 percent by volume of the lees of such wine, or both (calculated prior to the addition of water to facilitate fermentation or distillation). Fruit brandy includes 

mixtures of such brandy with not more than 30 percent (calculated on a proof gallon basis) of lees 

brandy. Fruit brandy derived solely from grapes and stored for at least 2 years in oak containers 

must be designated ‘‘grape brandy’’ or ‘‘brandy.’’ Grape brandy that has been stored in oak barrels 

for fewer than 2 years must be designated ‘‘immature grape brandy’’ or ‘‘immature brandy.’’ Fruit 

brandy, other than grape brandy, derived from one variety of fruit, must be designated by the word 

‘‘brandy’’ qualified by the name of such fruit (for example, ‘‘peach brandy’’), except that ‘‘apple 

brandy’’ may be designated ‘‘applejack,’’ ‘‘plum brandy’’ may be designated ‘‘Slivovitz,’’ and ‘‘cherry 

brandy’’ may be designated ‘‘Kirschwasser.’’ Fruit brandy derived from more than one variety of 

fruit must be designated as ‘‘fruit brandy’’ qualified by a truthful and adequate statement of composition, for example ‘‘Fruit brandy distilled from strawberries and blueberries.’’ 

(2) Cognac or ‘‘Cognac (grape) brandy’’ Grape brandy distilled exclusively in the Cognac region of France, which is entitled to be so designated by the laws and regulations of the French government. 

(3) Armagnac ........................................... Grape brandy distilled exclusively in France in accordance with the laws and regulations of France 

regulating the manufacture of Armagnac for consumption in France. 

(4) Brandy de Jerez ................................. Grape brandy distilled exclusively in Spain in accordance with the laws and regulations of Spain regulating the manufacture of Brandy de Jerez for consumption in Spain. 

(5) Calvados ............................................ Apple brandy distilled exclusively in France in accordance with the laws and regulations of France 

regulating the manufacture of Calvados for consumption in France. 

(6) Pisco .................................................. Grape brandy distilled in Peru or Chile in accordance with the laws and regulations of the country of 

manufacture of Pisco for consumption in the country of manufacture, including: 

(i) ‘‘Pisco Peru ́’’ (or ‘‘Pisco Peru’’), which is Pisco manufactured in Peru in accordance with the laws 

and regulations of Peru governing the manufacture of Pisco for consumption in that country; and 

(ii) ‘‘Pisco Chileno’’ (or ‘‘Chilean Pisco’’), which is Pisco manufactured in Chile in accordance with the 

laws and regulations of Chile governing the manufacture of Pisco for consumption in that country. 

(7) Dried fruit brandy ............................... Brandy that conforms to the standard for fruit brandy except that it has been derived from sound, 

dried fruit, or from the standard wine of such fruit. Brandy derived from raisins, or from raisin wine, 

must be designated ‘‘raisin brandy.’’ Dried fruit brandy, other than raisin brandy, must be designated by the word ‘‘brandy’’ qualified by the name of the dried fruit(s) from which made preceded 

by the word ‘‘dried’’, for example, ‘‘dried apricot brandy.’’ 


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7598 Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 

Type Standards 

(8) Lees brandy ....................................... Brandy distilled from the lees of standard grape or other fruit wine, and such brandy derived solely 

from grapes must be designated ‘‘grape lees brandy’’ or ‘‘lees brandy.’’ Lees brandy derived from 

fruit other than grapes must be designated as ‘‘lees brandy,’’ qualified by the name of the fruit from 

which such lees are derived, for example, ‘‘cherry lees brandy.’’ 

(9) Pomace brandy or Marc brandy ........ Brandy distilled from the skin and pulp of sound, ripe grapes or other fruit, after the withdrawal of the 

juice or wine therefrom. Such brandy derived solely from grape components must be designated 

‘‘grape pomace brandy,’’ ‘‘grape marc brandy’’, ‘‘pomace brandy,’’ or ‘‘mark brandy.’’ Grape pomace brandy may alternatively be designated as ‘‘grappa’’ or ‘‘grappa brandy.’’ Pomace or marc 

brandy derived from fruit other than grapes must be designated as ‘‘pomace brandy’’ or ‘‘marc 

brandy’’ qualified by the name of the fruit from which derived, for example, ‘‘apple pomace brandy’’ 

or ‘‘pear marc brandy.’’ 

(10) Residue brandy ................................ Brandy distilled wholly or in part from the fermented residue of fruit or wine. Such brandy derived 

solely from grapes must be designated ‘‘grape residue brandy,’’ or ‘‘residue brandy.’’ Residue brandy, derived from fruit other than grapes, must be designated as ‘‘residue brandy’’ qualified by the 

name of the fruit from which derived, for example, ‘‘orange residue brandy.’’ Brandy distilled wholly 

or in part from residue materials which conforms to any of the standards set forth in paragraphs 

(b)(1) and (7) through (9) of this section may, regardless of such fact, be designated ‘‘residue brandy’’, but the use of such designation shall be conclusive, precluding any later change of designation. 

(11) Neutral brandy ................................. Any type of brandy distilled at more than 85% alcohol by volume (170° proof) but less than 95% alcohol by volume. Such brandy derived solely from grapes must be designated ‘‘grape neutral brandy,’’ or ‘‘neutral brandy.’’ Other neutral brandies, must be designated in accordance with the rules 

for those types of brandy, and be qualified by the word ‘‘neutral’’; for example, ‘‘neutral citrus residue brandy’’. 

(12) Substandard brandy ......................... Any brandy: 

(i) Distilled from fermented juice, mash, or wine having a volatile acidity, calculated as acetic acid and 

exclusive of sulfur dioxide, in excess of 0.20 gram per 100 cubic centimeters (20 degrees Celsius); 

measurements of volatile acidity must be calculated exclusive of water added to facilitate distillation. 

(ii) Distilled from unsound, moldy, diseased, or decomposed juice, mash, wine, lees, pomace, or residue, or which shows in the finished product any taste, aroma, or characteristic associated with 

products distilled from such material. 

(iii) Such brandy derived solely from grapes must be designated ‘‘substandard grape brandy,’’ or 

‘‘substandard brandy.’’ Other substandard brandies must be designated in accordance with the 

rules for those types of brandy, and be qualified by the word ‘‘substandard’’; for example, ‘‘substandard fig brandy’’. 

§ 5.146 Blended applejack. 

(a) The class blended applejack. 

‘‘Blended applejack’’ is a mixture 

containing at least 20 percent on a proof 

gallon basis of apple brandy (applejack) 

that has been stored in oak barrels for 

not less than 2 years, and not more than 

80 percent of neutral spirits on a proof 

gallon basis. Blended applejack must be 

bottled at not less than 40 percent 

alcohol by volume (80° proof). 

(b) Label designation. The label 

designation for blended applejack may 

be ‘‘blended applejack’’ or ‘‘applejack– 

a blend.’’ 

§ 5.147 Rum. 

(a) The class rum. ‘‘Rum’’ is distilled 

spirits that is distilled from the 

fermented juice of sugar cane, sugar 

cane syrup, sugar cane molasses, or 

other sugar cane by-products at less 

than 95 percent alcohol by volume (190° 

proof) having the taste, aroma, and 

characteristics generally attributed to 

rum, and bottled at not less than 40 

percent alcohol by volume (80° proof); 

and also includes mixtures solely of 

such spirits. All rum may be designated 

as ‘‘rum’’ on the label, even if it also 

meets the standards for a specific type 

of rum. 

(b) Types. Paragraph (b)(1) of this 

section describes a specific type of rum 

and the standards for that type. 

Type Standards 

(1) Cachac ̧a ............................................. Rum that is a distinctive product of Brazil, manufactured in Brazil in compliance with the laws of 

Brazil regulating the manufacture of Cachac ̧a for consumption in that country. The word ‘‘Cachac ̧a’’ 

may be spelled with or without the diacritic mark (i.e., ‘‘Cachac ̧a’’ or ‘‘Cachaca’’). Cachac ̧a may be 

designated as ‘‘Cachac ̧a’’ or ‘‘rum’’ on labels. 

(2) [Reserved] ..........................................

§ 5.148 Agave spirits. 

(a) The class agave spirits. ‘‘Agave 

spirits’’ are distilled from a fermented 

mash, of which at least 51 percent is 

derived from plant species in the genus 

Agave and up to 49 percent is derived 

from other sugars. Agave spirits must be 

distilled at less than 95 percent alcohol 

by volume (190° proof) and bottled at or 

above 40 percent alcohol by volume (80° 

proof). Agave spirits may be stored in 

wood barrels. Agave spirits may contain 

added flavoring or coloring materials as 

authorized by § 5.155. This class also 

includes mixtures of agave spirits. 

Agave spirits that meet the standard of 

identity for ‘‘Tequila’’ or ‘‘Mezcal’’ may 

be designated as ‘‘agave spirits,’’ or as 

‘‘Tequila’’ or ‘‘Mezcal’’, as applicable. 

(b) Types. Paragraphs (b)(1) and (2) of 

this section describe the types of agave 

spirits and the rules for each type. 


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Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Rules and Regulations 7599 

Type Standards 

(1) Tequila ............................................... An agave spirit that is a distinctive product of Mexico. Tequila must be made in Mexico, in compliance with the laws and regulations of Mexico governing the manufacture of Tequila for consumption in that country. 

(2) Mezcal ................................................ An agave spirit that is a distinctive product of Mexico. Mezcal must be made in Mexico, in compliance 

with the laws and regulations of Mexico governing the manufacture of Mezcal for consumption in 

that country. 

§ 5.149 [Reserved] 

§ 5.150 Cordials and liqueurs. 

(a) The class cordials and liqueurs. 

Cordials and liqueurs are flavored 

distilled spirits that are made by mixing 

or redistilling distilled spirits with or 

over fruits, flowers, plants, or pure 

juices therefrom, or other natural 

flavoring materials, or with extracts 

derived from infusions, percolation, or 

maceration of such materials, and 

containing sugar (such as sucrose, 

fructose, dextrose, or levulose) in an 

amount of not less than 2.5 percent by 

weight of the finished product. 

Designations on labels may be ‘‘Cordial’’ 

or ‘‘Liqueur,’’ or, in the alternative, may 

be one of the type designations below. 

Cordials and liqueurs may not be 

designated as ‘‘straight’’. The 

designation of a cordial or liqueur may 

include the word ‘‘dry’’ if sugar is less 

than 10 percent by weight of the 

finished product. 

(b) Types. Paragraph (b)(1) through 

(12) of this section list definitions and 

standards for optional type 

designations. 

Type Rule 

(1) Sloe gin .............................................. A cordial or liqueur with the main characteristic flavor derived from sloe berries. 

(2) Rye liqueur, bourbon liqueur (or rye 

cordial or bourbon cordial).

Liqueurs, bottled at not less than 30 percent alcohol by volume, in which not less than 51 percent, on 

a proof gallon basis, of the distilled spirits used are, respectively, rye or bourbon whisky, straight 

rye or straight bourbon whisky, or whisky distilled from a rye or bourbon mash, and which possess 

a predominant characteristic rye or bourbon flavor derived from such whisky. Wine, if used, must 

be within the 2.5 percent limitation provided in § 5.155 for coloring, flavoring, and blending materials. 

(3) Rock and rye; Rock and bourbon; 

Rock and brandy; Rock and rum.

Liqueurs, bottled at not less than 24 percent alcohol by volume, in which, in the case of rock and rye 

and rock and bourbon, not less than 51 percent, on a proof gallon basis, of the distilled spirits used 

are, respectively, rye or bourbon whisky, straight rye or straight bourbon whisky, or whisky distilled 

from a rye or bourbon mash, and, in the case of rock and brandy and rock and rum, the distilled 

spirits used are all grape brandy or rum, respectively; containing rock candy or sugar syrup, with or 

without the addition of fruit, fruit juices, or other natural flavoring materials, and possessing, respectively, a predominant characteristic rye, bourbon, brandy, or rum flavor derived from the distilled 

spirits used. Wine, if used, must be within the 2.5 percent limitation provided in § 5.155 for harmless coloring, flavoring, and blending materials. 

(4) Rum liqueur, gin liqueur, brandy liqueur.Liqueurs, bottled at not less than 30 percent alcohol by volume, in which the distilled spirits used are 

entirely rum, gin, or brandy, respectively, and which possess, respectively, a predominant characteristic rum, gin, or brandy flavor derived from the distilled spirits used. In the case of brandy liqueur, the type of brandy must be stated in accordance with paragraph (d) of this section, except 

that liqueurs made entirely with grape brandy may be designated simply as ‘‘brandy liqueur.’’ Wine, 

if used, must be within the 2.5 percent limitation provided for in § 5.155 for harmless coloring, flavoring, and blending materials. 

(5) Amaretto ............................................. Almond flavored liqueur/cordial 

(6) Kummel .............................................. Caraway flavored liqueur/cordial 

(7) Ouzo, Anise, Anisette ........................ Anise flavored liqueurs/cordials 

(8) Sambuca ............................................ Anise flavored liqueur. See § 5.154(b)(2) for designation rules for Sambuca not produced in Italy. 

(9) Peppermint Schnapps ........................ Peppermint flavored liqueur/cordial 

(10) Triple Sec and Curacao ................... Orange flavored liqueurs/cordials. Curacao may be preceded by the color of the liqueur/cordial (for 

example, Blue Curacao). 

(11) Cre`me de ......................................... A liqueur/cordial where the blank is filled in with the predominant flavor (for example, Cre`me de 

menthe is mint flavored liqueur/cordial.) 

(12) Goldwasser ...................................... Herb flavored liqueur/cordial and containing gold flakes. See § 5.154(b)(2) for designation rules for 

Goldwasser not made in Germany. 

§ 5.151 Flavored spirits. 

(a) The class flavored spirits. 

‘‘Flavored spirits’’ are distilled spirits 

that are spirits conforming to one of the 

standards of identity set forth in 

§§ 5.142 through 5.148 to which have 

been added nonbeverage natural flavors, 

wine, or nonalcoholic natural flavoring 

materials, with or without the addition 

of sugar, and bottled at not less than 30 

percent alcohol by volume (60° proof). 

The flavored spirits must be specifically 

designated by the single base spirit and 

one or more of the most predominant 

flavors (for example, ‘‘Pineapple 

Flavored Tequila’’ or ‘‘Cherry Vanilla 

Flavored Bourbon Whisky’’). The base 

spirit must conform to the standard of 

identity for that spirit before the 

flavoring is added. Base spirits that are 

a distinctive product of a particular 

place must be manufactured in 

accordance with the laws and 

regulations of the country as designated 

in the base spirit’s standard of identity. 

If the finished product contains more 

than 2.5 percent by volume of wine, the 

kinds and percentages by volume of 

wine must be stated as a part of the 

designation (whether the wine is added 

directly to the product or whether it is 

first mixed into an intermediate 

product), except that a flavored brandy 

may contain an additional 12.5 percent 

by volume of wine, without label 

disclosure, if the additional wine is 

derived from the particular fruit 

corresponding to the labeled flavor of 

the product. 


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(b) [Reserved] 

§ 5.152 Imitations. 

(a) Imitations must bear, as a part of 

the designation thereof, the word 

‘‘imitation’’ and include the following: 

(1) Any class or type of distilled 

spirits to which has been added coloring 

or flavoring material of such nature as 

to cause the resultant product to 

simulate any other class or type of 

distilled spirits; 

(2) Any class or type of distilled 

spirits (other than distilled spirits 

specialty products as defined in § 5.156) 

to which has been added flavors 

considered to be artificial or imitation. 

(3) Any class or type of distilled 

spirits (except cordials, liqueurs and 

specialties marketed under labels which 

do not indicate or imply that a 

particular class or type of distilled 

spirits was used in the manufacture 

thereof) to which has been added any 

whisky essence, brandy essence, rum 

essence, or similar essence or extract 

which simulates or enhances, or is used 

by the trade or in the particular product 

to simulate or enhance, the 

characteristics of any class or type of 

distilled spirits; 

(4) Any type of whisky to which 

beading oil has been added; 

(5) Any rum to which neutral spirits 

or distilled spirits other than rum have 

been added; 

(6) Any brandy made from distilling 

material to which has been added any 

amount of sugar other than the kind and 

amount of sugar expressly authorized in 

the production of standard wine; and 

(7) Any brandy to which neutral 

spirits or distilled spirits other than 

brandy have been added, except that 

this provision shall not apply to any 

product conforming to the standard of 

identity for blended applejack. 

(b) If any of the standards set forth in 

paragraphs (a)(1) through (7) of this 

section apply, the ‘‘Imitation’’ class 

designation must be used in front of the 

appropriate class as part of the 

designation (for example, Imitation 

Whisky). 

§ 5.153 [Reserved] 

§ 5.154 Rules for geographical 

designations. 

(a) Geographical designations. (1) 

Geographical names for distinctive 

types of distilled spirits (other than 

names found by the appropriate TTB 

officer under paragraph (a)(2) of this 

section to have become generic) may not 

be applied to distilled spirits produced 

in any other place than the particular 

region indicated by the name, unless: 

(i) There appears the word ‘‘type’’ or 

the word ‘‘American’’ or some other 

adjective indicating the true place of 

production, in lettering substantially as 

conspicuous as such name; and 

(ii) The distilled spirits to which the 

name is applied conform to the distilled 

spirits of that particular region. The 

following are examples of distinctive 

types of distilled spirits with 

geographical names that have not 

become generic: Eau de Vie de Dantzig 

(Danziger Goldwasser), Ojen, Swedish 

punch. Geographical names for 

distinctive types of distilled spirits may 

be used to designate only distilled 

spirits conforming to the standard of 

identity, if any, for such type specified 

in this section, or if no such standard is 

so specified, then in accordance with 

the trade understanding of that 

distinctive type. 

(2) Only such geographical names for 

distilled spirits as the appropriate TTB 

officer finds have by usage and common 

knowledge lost their geographical 

significance to such extent that they 

have become generic shall be deemed to 

have become generic. Examples are 

London dry gin, Geneva (Hollands) gin. 

(3) Geographical names that are not 

names for distinctive types of distilled 

spirits, and that have not become 

generic, shall not be applied to distilled 

spirits produced in any other place than 

the particular place or region indicated 

in the name. Examples are Armagnac, 

Greek brandy, Jamaica rum, Puerto Rico 

rum, Demerara rum and Andong Soju. 

(b) Products without geographical 

designations but distinctive of a 

particular place. (1) The whiskies of the 

types specified in paragraphs (c)(2) 

through (6) and (10) through (14) of 

§ 5.143 are distinctive products of the 

United States and if produced in a 

foreign country shall be designated by 

the applicable designation prescribed in 

such paragraphs, together with the 

words ‘‘American type’’ or the words 

‘‘produced (distilled, blended) in ll’’, 

the blank to be filled in with the name 

of the foreign country: Provided, That 

the word ‘‘bourbon’’ shall not be used 

to describe any whisky or whisky-based 

distilled spirits not produced in the 

United States. If whisky of any of these 

types is composed in part of whisky or 

whiskies produced in a foreign country 

there shall be stated, on the brand label, 

the percentage of such whisky and the 

country of origin thereof. 

(2) The name for other distilled spirits 

which are distinctive products of a 

particular place or country (such as 

Habanero), may not be given to the 

product of any other place or country 

unless the designation for such product 

includes the word ‘‘type’’ or an 

adjective such as ‘‘American’’, or the 

like, clearly indicating the true place of 

production. The provision for place of 

production shall not apply to 

designations which by usage and 

common knowledge have lost their 

geographical significance to such an 

extent that the appropriate TTB officer 

finds they have become generic. 

Examples of generic designations are 

Slivovitz, Zubrovka, Aquavit, Arrack, 

and Kirschwasser. 

§ 5.155 Alteration of class and type. 

(a) Definitions—(1) Coloring, 

flavoring, or blending material. For the 

purposes of this section, the term 

‘‘coloring, flavoring, or blending 

material’’ means a harmless substance 

that is an essential component of the 

class or type of distilled spirits to which 

it is added; or a harmless substance, 

such as caramel, straight malt or straight 

rye malt whiskies, fruit juices, sugar, 

infusion of oak chips when approved by 

the Administrator, or wine, that is not 

an essential component part of the 

distilled spirits product to which it is 

added but which is customarily 

employed in the product in accordance 

with established trade usage. 

(2) Certified color. For purposes of 

this section, the term ‘‘certified color’’ 

means a color additive that is required 

to undergo batch certification in 

accordance with part 74 or part 82 of the 

Food and Drug Administration 

regulations (21 CFR parts 74 and 82). An 

example of a certified color is FD&C 

Blue No. 2. 

(b) Allowable additions. Except as 

provided in paragraph (c) of this 

section, the following may be added to 

distilled spirits without changing the 

class or type designation: 

(1) Coloring, flavoring, and blending 

materials that are essential components 

of the class or type of distilled spirits to 

which added; 

(2) Coloring, flavoring, and blending 

materials that are not essential 

component parts of the distilled spirits 

to which added, provided that such 

coloring, flavoring, or blending 

materials do not total more than 2.5 

percent by volume of the finished 

product; and 

(3) Wine, when added to Canadian 

whisky in Canada in accordance with 

the laws and regulations of Canada 

governing the manufacture of Canadian 

whisky. 

(c) Special rules. The addition of the 

following will require a redesignation of 

the class or type of the distilled spirits 

product to which added: 

(1) Coloring, flavoring, or blending 

materials that are not essential 

component parts of the class or type of 

distilled spirits to which they are added, 

if such coloring, flavoring, and blending 


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materials total more than 2.5 percent by 

volume of the finished product; 

(2) Any material, other than caramel, 

infusion of oak chips, and sugar, added 

to Cognac brandy; 

(3) Any material whatsoever added to 

neutral spirits or straight whisky, except 

that vodka may be treated with sugar, in 

an amount not to exceed two grams per 

liter, and with citric acid, in an amount 

not to exceed one gram per liter; 

(4) Certified colors, carmine, or 

cochineal extract; 

(5) Any material that would render 

the product to which it is added an 

imitation, as defined in § 5.152; or 

(6) For products that are required to 

be stored in oak barrels in accordance 

with a standard of identity, the storing 

of the product in an additional barrel 

made of another type of wood. 

(d) Extractions from distilled spirits. 

The removal of any constituents from a 

distilled spirits product to such an 

extent that the product no longer 

possesses the taste, aroma, and 

characteristics generally attributed to 

that class or type of distilled spirits will 

alter the class or type of the product, 

and the resulting product must be 

redesignated appropriately. In addition, 

in the case of straight whisky, the 

removal of more than 15 percent of the 

fixed acids, volatile acids, esters, 

soluble solids, or higher alcohols, or the 

removal of more than 25 percent of the 

soluble color, constitutes an alteration 

of the class or type of the product and 

requires a redesignation of the product. 

(e) Exceptions. Nothing in this section 

has the effect of modifying the standards 

of identity specified in § 5.150 for 

cordials and liqueurs, and in § 5.151 for 

flavored spirits, or of authorizing any 

product defined in § 5.152 to be 

designated as other than an imitation. 

§ 5.156 Distilled spirits specialty products. 

(a) General. Distilled spirits that do 

not meet one of the other standards of 

identity specified in this subpart are 

distilled spirits specialty products and 

must be designated in accordance with 

trade and consumer understanding, or, 

if no such understanding exists, with a 

distinctive or fanciful name (which may 

be the name of a cocktail) appearing in 

the same field of vision as a statement 

of composition. The statement of 

composition and the distinctive or 

fanciful name serve as the class and 

type designation for these products. The 

statement of composition must follow 

the rules found in § 5.166. A product 

may not bear a designation which 

indicates it contains a class or type of 

distilled spirits unless the distilled 

spirits therein conform to such class and 

type. 

(b) Products designated in accordance 

with trade and consumer 

understanding. Products may be 

designated in accordance with trade and 

consumer understanding without a 

statement of composition if the 

appropriate TTB officer has determined 

that there is such understanding. 

§§ 5.157–5.165 [Reserved] 

§ 5.166 Statements of composition. 

(a) Rules for the statement of 

composition. When a statement of 

composition is required as part of a 

designation for a distilled spirits 

specialty product, the statement must be 

truthful and adequate. 

(b) Cocktails. A statement of the 

classes and types of distilled spirits 

used in the manufacture thereof will be 

deemed a sufficient statement of 

composition in the case of highballs, 

cocktails, and similar prepared 

specialties when the designation 

adequately indicates to the consumer 

the general character of the product. 

Subpart J—Formulas 

§ 5.191 Application. 

The requirements of this subpart 

apply to the following persons: 

(a) Proprietors of distilled spirits 

plants qualified as processors under part 

19 of this chapter; 

(b) Persons in the Commonwealth of 

Puerto Rico who manufacture distilled 

spirits products for shipment to the 

United States. However, the filing of a 

formula for approval by TTB is only 

required for those products that will be 

shipped to the United States; and 

(c) Persons who ship Virgin Islands 

distilled spirits products into the United 

States. 

§ 5.192 Formula requirements. 

(a) General. An approved formula is 

required to blend, mix, purify, refine, 

compound, or treat distilled spirits in a 

manner that results in a change of class 

or type of the spirits. 

(b) Preparation and submission. In 

order to obtain formula approval, a 

person listed in § 5.191 must file a 

formula in accordance with the 

instructions on TTB Form 5100.51, 

Formula and Process for Domestic and 

Imported Alcohol Beverages (if filing by 

paper) or on Formulas Online, if filing 

electronically. When a product will be 

made or processed under the same 

formula at more than one location 

operated by the distiller or processor, 

the distiller or processor must identify 

on the form each place of production or 

processing by name and address, and by 

permit number, if applicable, and must 

ensure that a copy of the approved 

formula is maintained at each location. 

(c) Existing approvals. Any approval 

of a formula will remain in effect until 

revoked, superseded, or voluntarily 

surrendered, and if the formula is 

revoked, superseded, or voluntarily 

surrendered, any existing qualifying 

statements on such approval as to the 

rate of tax or the limited use of alcoholic 

flavors will be made obsolete. 

(d) Change in formula. Any change in 

an approved formula requires the filing 

of a new TTB Form 5100.51 for approval 

of the changed formula. After a changed 

formula is approved, the filer must 

surrender the original formula approval 

to the appropriate TTB officer. 

§ 5.193 Operations requiring formulas. 

The following operations change the 

class or type of distilled spirits and 

therefore require formula approval 

under § 5.192: Provided, That, TTB may 

exempt categories of distilled spirits 

products from specific regulatory 

formula requirements upon a finding 

that the filing of a formula is no longer 

necessary in order to properly classify 

the finished product: 

(a) The compounding of distilled 

spirits through the mixing of a distilled 

spirits product with any coloring or 

flavoring material, wine, or other 

material containing distilled spirits, 

unless TTB has issued public guidance 

recognizing that such ingredients are 

harmless coloring, flavoring or blending 

materials that do not alter the class or 

type pursuant to the standards set forth 

in § 5.155; 

(b) The manufacture of an 

intermediate product to be used 

exclusively in other distilled spirits 

products on bonded premises; 

(c) Any filtering or stabilizing process 

that results in a distilled spirits 

product’s no longer possessing the taste, 

aroma, and characteristics generally 

attributed to the class or type of distilled 

spirits before the filtering or stabilizing, 

or, in the case of straight whisky, that 

results in the removal of more than 15 

percent of the fixed acids, volatile acids, 

esters, soluble solids, or higher alcohols, 

or more than 25 percent of the soluble 

color; 

(d) The mingling of spirits that differ 

in class or in type of materials from 

which made; 

(e) The mingling of distilled spirits 

that were stored in charred cooperage 

with distilled spirits that were stored in 

plain or reused cooperage, or the mixing 

of distilled spirits that have been treated 

with wood chips with distilled spirits 

not so treated, or the mixing of distilled 

spirits that have been subjected to any 

treatment which changes their character 


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with distilled spirits not subjected to 

such treatment, unless it is determined 

by the appropriate TTB officer in each 

of these cases that the composition of 

the distilled spirits is the same 

notwithstanding the storage in different 

kinds of cooperage or the treatment of 

a portion of the spirits; 

(f) Except when authorized for 

production or storage operations by part 

19 of this chapter, the use of any 

physical or chemical process or any 

apparatus that accelerates the maturing 

of the distilled spirits; 

(g) The steeping or soaking of plant 

materials, such as fruits, berries, 

aromatic herbs, roots, or seeds, in 

distilled spirits or wines at a distilled 

spirits plant; 

(h) The artificial carbonating of 

distilled spirits; 

(i) In Puerto Rico, the blending of 

distilled spirits with any liquors 

manufactured outside Puerto Rico; 

(j) The production of gin by: 

(1) Redistillation, over juniper berries 

and other natural aromatics or over the 

extracted oils of such materials, of 

spirits distilled at or above 190 degrees 

of proof that are free from impurities, 

including such spirits recovered by 

redistillation of imperfect gin spirits; or 

(2) Mixing gin with other distilled 

spirits; 

(k) The treatment of gin by: 

(1) The addition or abstraction of any 

substance or material other than pure 

water after redistillation in a manner 

that would change its class and type 

designation; or 

(2) The addition of any substance or 

material other than juniper berries or 

other natural aromatics or the extracted 

oils of such materials, or the addition of 

pure water, before or during 

redistillation, in a manner that would 

change its class and type designation; 

and 

(l) The recovery of spirits by 

redistillation from distilled spirits 

products containing other alcoholic 

ingredients and from spirits that have 

previously been entered for deposit. 

However, no formula approval is 

required for spirits redistilled into any 

type of neutral spirits other than vodka 

or for spirits redistilled at less than 190 

degrees of proof that lack the taste, 

aroma and other characteristics 

generally attributed to whisky, brandy, 

rum, or gin and that are designated as 

‘‘Spirits’’ preceded or followed by a 

word or phrase descriptive of the 

material from which distilled. Such 

spirits may not be designated ‘‘Spirits 

Grain’’ or ‘‘Grain Spirits’’ on any label. 

§ 5.194 Adoption of predecessor’s 

formulas. 

A successor to a person listed in 

§ 5.191 may adopt a predecessor’s 

approved formulas by filing an 

application with the appropriate TTB 

officer. The application must include a 

list of the formulas for adoption and 

must identify each formula by formula 

number, name of product, and date of 

approval. The application must clearly 

show that the predecessor has 

authorized the use of the previously 

approved formulas by the successor. 

Subpart K—Standards of Fill and 

Authorized Container Sizes. 

§ 5.201 General. 

No person engaged in business as a 

distiller, rectifier (processor), importer, 

wholesaler, bottler, or warehouseman 

and bottler, directly or indirectly, or 

through an affiliate, may sell or ship or 

deliver for sale or shipment in interstate 

or foreign commerce, or otherwise 

introduce in interstate or foreign 

commerce, or receive therein, or remove 

from customs custody for consumption, 

any distilled spirits in containers, 

unless the distilled spirits are bottled in 

conformity with §§ 5.202 and 5.203. 

§ 5.202 Standard liquor containers. 

(a) General. Except as provided in 

paragraph (d) of this section and in 

§ 5.205, distilled spirits must be bottled 

in standard liquor containers, as defined 

in this paragraph. A standard liquor 

container is a container that is made, 

formed, and filled in such a way that it 

does not mislead purchasers as regards 

its contents. An individual carton or 

other container of a bottle may not be 

so designed as to mislead purchasers as 

to the size of the bottle it contains. 

(b) Headspace. A filled liquor 

container of a capacity of 200 milliliters 

(6.8 fl. oz.) or more is deemed to 

mislead the purchaser if it has a 

headspace in excess of 8 percent of the 

total capacity of the container after 

closure. 

(c) Design. Regardless of the 

correctness of the stated net contents, a 

liquor container is deemed to mislead 

the purchaser if it is made and formed 

in such a way that its actual capacity is 

substantially less than the capacity it 

appears to have upon visual 

examination under ordinary conditions 

of purchase or use. 

(d) Exception for distinctive liquor 

bottles. The provisions of paragraphs (b) 

and (c) of this section do not apply to 

liquor bottles for which a distinctive 

liquor bottle approval has been issued 

pursuant to § 5.205. 

§ 5.203 Standards of fill (container sizes). 

(a) Authorized standards of fill. The 

following metric standards of fill are 

authorized for distilled spirits, whether 

domestically bottled or imported: 

(1) Containers other than cans. For 

containers other than cans described in 

paragraph (a)(2) of this section— 

(i) 1.8 Liters. 

(ii) 1.75 Liters. 

(iii) 1.00 Liter. 

(iv) 900 mL. 

(v) 750 mL. 

(v) 720 mL. 

(vi) 700 mL. 

(vii) 375 mL. 

(viii) 200 mL. 

(ix) 100 mL. 

(x) 50 mL. 

(2) Metal cans. For metal containers 

that have the general shape and design 

of a can, that have a closure that is an 

integral part of the container, and that 

cannot be readily reclosed after 

opening— 

(i) 355 mL. 

(ii) 200 mL. 

(iii) 100 mL. 

(iv) 50 mL. 

(b) Spirits bottled using outdated 

standards. Paragraph (a) of this section 

does not apply to: 

(1) Imported distilled spirits in the 

original containers in which entered 

into customs custody prior to January 1, 

1980 (or prior to July 1, 1989 in the case 

of distilled spirits imported in 500 mL 

containers); or 

(2) Imported distilled spirits bottled 

or packed prior to January 1, 1980 (or 

prior to July 1, 1989 in the case of 

distilled spirits in 500 mL containers) 

and certified as to such in a statement 

signed by an official duly authorized by 

the appropriate foreign government. 

§ 5.204 [Reserved] 

§ 5.205 Distinctive liquor bottle approval. 

(a) General. A bottler or importer of 

distilled spirits in distinctive liquor 

bottles may apply for a distinctive 

liquor bottle approval from the 

appropriate TTB officer. The distinctive 

liquor bottle approval will provide an 

exemption only from those 

requirements that are specified in 

paragraph (b) of this section. A 

distinctive liquor bottle is a container 

that is not the customary shape and that 

may obscure the net contents of the 

distilled spirits. 

(b) Exemptions provided by the 

distinctive liquor bottle approval. The 

distinctive liquor bottle approval issued 

pursuant to this section will provide 

that: 

(1) The provisions of § 5.202(b) and 

(c) do not apply to the liquor containers 


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for which the distinctive liquor bottle 

approval has been issued; and 

(2) The information required to 

appear in the same field of vision 

pursuant to § 5.63(a) may appear 

elsewhere on a distinctive liquor bottle 

for which the distinctive liquor bottle 

approval has been issued, if the design 

of the container precludes the 

presentation of all mandatory 

information in the same field of vision. 

(c) How to apply. A bottler or 

importer of distilled spirits in 

distinctive liquor bottles may apply for 

a distinctive liquor bottle approval as 

part of the application for a certificate 

of label approval (COLA). 

Subpart L [Reserved] 

§ 5.211 [Reserved] 

§ 5.212 [Reserved] 

Subpart M—Penalties and 

Compromise of Liability 

§ 5.221 Criminal penalties. 

A violation of the labeling provisions 

of 27 U.S.C. 205(e) is punishable as a 

misdemeanor. See 27 U.S.C. 207 for the 

statutory provisions relating to criminal 

penalties, consent decrees, and 

injunctions. 

§ 5.222 Conditions of basic permit. 

A basic permit is conditioned upon 

compliance with the requirements of 27 

U.S.C. 205, including the labeling and 

advertising provisions of this part. A 

willful violation of the conditions of a 

basic permit provides grounds for the 

revocation or suspension of the permit, 

as applicable, as set forth in part 1 of 

this chapter. 

§ 5.223 Compromise. 

Pursuant to 27 U.S.C. 207, the 

appropriate TTB officer is authorized, 

with respect to any violation of 27 

U.S.C. 205, to compromise the liability 

arising with respect to such violation 

upon payment of a sum not in excess of 

$500 for each offense, to be collected by 

the appropriate TTB officer and to be 

paid into the Treasury as miscellaneous 

receipts. 

Subpart N—Advertising of Distilled 

Spirits 

§ 5.231 Application. 

No person engaged in business as a 

distiller, rectifier (processor), importer, 

wholesaler, bottler, or warehouseman 

and bottler of distilled spirits, directly 

or indirectly or through an affiliate, 

shall publish or disseminate or cause to 

be published or disseminated by radio 

or television broadcast, or in any 

newspaper, periodical, or any 

publication, by any sign or outdoor 

advertisement, or by electronic or 

internet media, or any other printed or 

graphic matter, any advertisement of 

distilled spirits, if such advertising is in, 

or is calculated to induce sales in, 

interstate or foreign commerce, or is 

disseminated by mail, unless such 

advertisement is in conformity with this 

subpart: Provided, That such sections 

shall not apply to outdoor advertising in 

place on September 7, 1984, but shall 

apply upon replacement, restoration, or 

renovation of any such advertising; and 

provided further, that such sections 

shall not apply to a retailer or the 

publisher of any newspaper, periodical, 

or other publication, or radio or 

television or internet broadcast, unless 

such retailer or publisher or broadcaster 

is engaged in business as a distiller, 

rectifier (processor), importer, 

wholesaler, or warehouseman and 

bottler of distilled spirits, directly or 

indirectly, or through an affiliate. 

§ 5.232 Definition. 

As used in this subpart, the term 

‘‘advertisement’’ ‘‘or advertising’’ 

includes any written or verbal 

statement, illustration, or depiction 

which is in, or calculated to induce 

sales in, interstate or foreign commerce, 

or is disseminated by mail, whether it 

appears in a newspaper, magazine, trade 

booklet, menu, wine card, leaflet, 

circular, mailer, book insert, catalog, 

promotional material, sales pamphlet, 

internet or other electronic site or social 

network, or in any written, printed, 

graphic, or other matter (such as hang 

tags) accompanying, but not firmly 

affixed to, the bottle, representations 

made on shipping cases or in any 

billboard, sign, other outdoor display, 

public transit card, other periodical 

literature, publication, or in a radio or 

television broadcast, or in any other 

media; except that such term shall not 

include: 

(a) Any label affixed to any bottle of 

distilled spirits; or any individual 

covering, carton, or other container of 

the bottle which constitute a part of the 

labeling under this part. 

(b) Any editorial or other reading 

material (such as a news release) in any 

periodical or publication or newspaper 

for the publication of which no money 

or valuable consideration or thing of 

value is paid or promised, directly or 

indirectly, by any permittee, and which 

is not written by or at the direction of 

the permittee. 

§ 5.233 Mandatory statements. 

(a) Responsible advertiser. The 

advertisement must display the 

responsible advertiser’s name, city, and 

State or the name and other contact 

information (such as, telephone number, 

website, or email address) where the 

responsible advertiser may be contacted. 

(b) Class and type. The advertisement 

shall contain a conspicuous statement of 

the class to which the product belongs 

and the type thereof corresponding with 

the statement of class and type which is 

required to appear on the label of the 

product. 

(c) Alcohol content—(1) Mandatory 

statement. The alcohol content for 

distilled spirits must be stated as a 

percentage of alcohol by volume, in the 

manner set forth in § 5.65 of this chapter 

for labels. Products that contain a 

significant amount of material, such as 

solid fruit, that may absorb spirits after 

bottling must state the alcohol content 

at the time of bottling as follows: 

‘‘Bottled at ll percent-alcohol-byvolume.’’ 

(2) Optional statement. In addition, 

the advertisement may also state the 

alcohol content in degrees of proof if 

this information appears in the same 

field of vision as the statement 

expressed in percent-alcohol-byvolume. 

(d) Percentage of neutral spirits and 

name of commodity. 

(1) In the case of distilled spirits 

(other than cordials, liqueurs, flavored 

neutral spirits, including flavored 

vodka, and distilled spirits specialty 

products) produced by blending or 

rectification, if neutral spirits have been 

used in the production thereof, there 

shall be stated the percentage of neutral 

spirits so used and the name of the 

commodity from which such neutral 

spirits have been distilled. The 

statement of percentage and the name of 

the commodity shall be made in 

substantially the following form: 

‘‘ll% neutral spirits distilled from 

ll (insert grain, cane products, or 

fruit, or other products as appropriate)’’; 

or ll% neutral spirits (vodka) 

distilled from ll (insert grain, cane 

product, fruit, or other commodity, as 

appropriate)’’; or ‘‘ll% grain (cane 

products), (fruit) neutral spirits’’; or 

‘‘ll% grain spirits’’. The statement 

used under this paragraph must be 

identical to that on the label of distilled 

spirits to which the advertisement 

refers. 

(2) In the case of gin manufactured by 

a process of continuous distillation or in 

the case of neutral spirits, there shall be 

stated the name of the commodity from 

which such gin or neutral spirits were 

distilled. The statement of the name of 

the commodity shall be made in 

substantially the following form: 

‘‘Distilled from grain’’, or ‘‘Distilled 

from cane products’’, or ‘‘Distilled from 


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fruit.’’ The statement used under this 

paragraph must be identical to that on 

the label of distilled spirits to which the 

advertisement refers. 

(e) Exception. (1) If an advertisement 

refers to a general distilled spirits line 

or all of the distilled spirits products of 

one company, whether by the company 

name or by the brand name common to 

all the distilled spirits in the line, the 

only mandatory information necessary 

is the responsible advertiser’s name, 

city, and State or the name and other 

contact information (such as telephone 

number, website, or email address) 

where the responsible advertiser may be 

contacted. This exception does not 

apply where only one type of distilled 

spirits is marketed under the specific 

brand name advertised. 

(2) On consumer specialty items (such 

as T-shirts, hats, bumper stickers, or 

refrigerator magnets), the only 

information necessary is the company 

name of the responsible advertiser or 

brand name of the product. 

§ 5.234 Legibility of mandatory 

information. 

(a) Statements required under this 

subpart to appear in any written, 

printed, or graphic advertisement shall 

be in lettering or type size sufficient to 

be conspicuous and readily legible. 

(b) In the case of signs, billboards, and 

displays the name and address or name 

and other contact information (such as, 

telephone number, website, or email) of 

the permittee responsible for the 

advertisement may appear in type size 

of lettering smaller than the other 

mandatory information, provided such 

information can be ascertained upon 

closer examination of the sign or 

billboard. 

(c) Mandatory information shall be so 

stated as to be clearly a part of the 

advertisement and shall not be 

separated in any manner from the 

remainder of the advertisement. 

(d) Mandatory information for two or 

more products shall not be stated unless 

clearly separated. 

(e) Mandatory information shall be so 

stated in both the print and audio-visual 

media that it will be readily apparent to 

the persons viewing the advertisement. 

§ 5.235 Prohibited practices. 

(a) Restrictions. An advertisement of 

distilled spirits shall not contain: 

(1) Any statement that is false or 

untrue in any material particular, or 

that, irrespective of falsity, directly, or 

by ambiguity, omission, or inference, or 

by the addition of irrelevant, scientific 

or technical matter tends to create a 

misleading impression. 

(2) Any false or misleading statement 

that explicitly or implicitly disparages a 

competitor’s product. This does not 

prevent truthful and accurate 

comparisons between products (such as, 

‘‘Our liqueur contains more strawberries 

than Brand X’’) or statements of opinion 

(such as, ‘‘We think our rum tastes 

better than any other distilled spirits on 

the market’’). 

(3) Any statement, design, device, or 

representation which is obscene or 

indecent. 

(4) Any statement, design, device, or 

representation of or relating to analyses, 

standards or tests, irrespective of falsity, 

which the appropriate TTB officer finds 

to be likely to mislead the consumer. 

(5) Any statement, design, device, or 

representation of or relating to any 

guarantee, irrespective of falsity, which 

the appropriate TTB officer finds to be 

likely to mislead the consumer. Moneyback guarantees are not prohibited. 

(6) The words ‘‘bond’’, ‘‘bonded’’, 

‘‘bottled in bond’’, ‘‘aged in bond’’, or 

phrases containing these or synonymous 

terms, unless such words or phrases 

appear, pursuant to § 5.88, on labels of 

the distilled spirits advertised, and are 

stated in the advertisement in the 

manner and form in which they are 

permitted to appear on the label. 

(7) The word ‘‘pure’’ unless: 

(i) It refers to a particular ingredient 

used in the production of the distilled 

spirits, and is a truthful representation 

about the ingredient; or 

(ii) It is part of the bona fide name of 

a permittee or retailer from whom the 

distilled spirits are bottled; or 

(iii) It is part of the bona fide name 

of the permittee who bottled the 

distilled spirits. 

(8) The words ‘‘double distilled’’ or 

‘‘triple distilled’’ or any similar terms 

unless it is a truthful statement of fact. 

For purposes of this paragraph only, a 

distillation means a single run through 

a pot still or a single run through a 

column of a column (reflux) still. The 

number of distillations may be 

understated but may not be overstated. 

(b) Statements inconsistent with 

labeling. (1) Advertisements shall not 

contain any statement concerning a 

brand or lot of distilled spirits that is 

inconsistent with any statement on the 

labeling thereof. 

(2) Any label depicted on a container 

in an advertisement shall be a 

reproduction of an approved label. 

(c) Statement of age. The 

advertisement shall not contain any 

statement, design, or device directly or 

by implication concerning age or 

maturity of any brand or lot of distilled 

spirits unless a statement of age appears 

on the label of the advertised product. 

When any such statement, design, or 

device concerning age or maturity is 

contained in any advertisement, it shall 

include (in direct conjunction therewith 

and with substantially equal 

conspicuousness) all parts of the 

statement, if any, concerning age and 

percentages required to be made on the 

label under the provisions of § 5.74. An 

advertisement for any whisky or brandy 

(except immature brandies, pomace 

brandy, marc brandy, Pisco brandy, and 

grappa brandy) which is not required to 

bear a statement of age on the label or 

an advertisement for any rum or agave 

spirits, which has been aged for not less 

than 4 years may, however, contain 

inconspicuous, general representations 

as to age, maturity or other similar 

representations even though a specific 

age statement does not appear on the 

label of the advertised product and in 

the advertisement itself. 

(d) Health-related statements—(1) 

Definitions. When used in this 

paragraph (d), terms are defined as 

follows: 

(i) Health-related statement means 

any statement related to health and 

includes statements of a curative or 

therapeutic nature that, expressly or by 

implication, suggest a relationship 

between the consumption of alcohol, 

distilled spirits, or any substance found 

within the distilled spirits, and health 

benefits or effects on health. The term 

includes both specific health claims and 

general references to alleged health 

benefits or effects on health associated 

with the consumption of alcohol, 

distilled spirits, or any substance found 

within the distilled spirits, as well as 

health-related directional statements. 

The term also includes statements and 

claims that imply that a physical or 

psychological sensation results from 

consuming the distilled spirits, as well 

as statements and claims of nutritional 

value (e.g., statements of vitamin 

content). Statements concerning caloric, 

carbohydrate, protein, and fat content 

do not constitute nutritional claims 

about the product. 

(ii) Specific health claim is a type of 

health-related statement that, expressly 

or by implication, characterizes the 

relationship of the distilled spirits, 

alcohol, or any substance found within 

the distilled spirits, to a disease or 

health-related condition. Implied 

specific health claims include 

statements, symbols, vignettes, or other 

forms of communication that suggest, 

within the context in which they are 

presented, that a relationship exists 

between distilled spirits, alcohol, or any 

substance found within the distilled 

spirits, and a disease or health-related 

condition. 

(iii) Health-related directional 

statement is a type of health-related 


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statement that directs or refers 

consumers to a third party or other 

source for information regarding the 

effects on health of distilled spirits or 

alcohol consumption. 

(2) Rules for advertising—(i) Healthrelated statements. In general, 

advertisements may not contain any 

health-related statement that is untrue 

in any particular or tends to create a 

misleading impression as to the effects 

on health of alcohol consumption. TTB 

will evaluate such statements on a caseby-case basis and may require as part of 

the health-related statement a 

disclaimer or some other qualifying 

statement to dispel any misleading 

impression conveyed by the healthrelated statement. Such disclaimer or 

other qualifying statement must appear 

as prominent as the health-related 

statement. 

(ii) Specific health claims. A specific 

health claim will not be considered 

misleading if it is truthful and 

adequately substantiated by scientific or 

medical evidence; sufficiently detailed 

and qualified with respect to the 

categories of individuals to whom the 

claim applies; adequately discloses the 

health risks associated with both 

moderate and heavier levels of alcohol 

consumption; and outlines the 

categories of individuals for whom any 

levels of alcohol consumption may 

cause health risks. This information 

must appear as part of the specific 

health claim and in a manner as 

prominent as the specific health claim. 

(iii) Health-related directional 

statements. A statement that directs 

consumers to a third party or other 

source for information regarding the 

effects on health of distilled spirits or 

alcohol consumption is presumed 

misleading unless it— 

(A) Directs consumers in a neutral or 

other non-misleading manner to a third 

party or other source for balanced 

information regarding the effects on 

health of distilled spirits or alcohol 

consumption; and 

(B)(1) Includes as part of the healthrelated directional statement, and in a 

manner as prominent as the healthrelated directional statement, the 

following disclaimer: ‘‘This statement 

should not encourage you to drink or 

increase your alcohol consumption for 

health reasons;’’ or 

(2) Includes as part of the healthrelated directional statement, and in a 

manner as prominent as the healthrelated directional statement, some 

other qualifying statement that the 

appropriate TTB officer finds is 

sufficient to dispel any misleading 

impression conveyed by the healthrelated directional statement. 

(e) Place of origin. The advertisement 

shall not represent that the distilled 

spirits were manufactured in or 

imported from a place or country other 

than that of their actual origin, or were 

produced or processed by one who was 

not in fact the actual producer or 

processor. 

(f) Confusion of brands. Two or more 

different brands or lots of distilled 

spirits shall not be advertised in one 

advertisement (or in two or more 

advertisements in one issue of a 

periodical or newspaper, or in one piece 

of other written, printed, or graphic 

matter) if the advertisement tends to 

create the impression that 

representations made as to one brand or 

lot apply to the other or others, and if 

as to such latter the representations 

contravene any provisions of this 

subpart or are in any respect untrue. 

(g) Representations of the armed 

forces or flags. Advertisements may not 

show an image of any government’s flag 

or any representation related to the 

armed forces of the United States if the 

representation, standing alone or 

considered together with any additional 

language or symbols, creates a false or 

misleading impression that the product 

was endorsed by, made by, used by, or 

made under the supervision of, the 

government represented by that flag or 

by the armed forces of the United States. 

This section does not prohibit the use of 

a flag as part of a claim of American 

origin or another country of origin. 

(h) Deceptive advertising techniques. 

Subliminal or similar techniques are 

prohibited. ‘‘Subliminal or similar 

techniques,’’ as used in this subpart, 

refers to any device or technique that is 

used to convey, or attempts to convey, 

a message to a person by means of 

images or sounds of a very brief nature 

that cannot be perceived at a normal 

level of awareness. 

(i) Any use of the term ‘‘organic’’ in 

the advertising of distilled spirits must 

comply with the United States 

Department of Agriculture’s (USDA) 

National Organic Program rules, 7 CFR 

part 205, as interpreted by the USDA. 

§ 5.236 Comparative advertising. 

(a) General. Comparative advertising 

shall not be disparaging of a 

competitor’s product in a manner that is 

false or misleading. 

(b) Taste tests. (1) Taste test results 

may be used in advertisements 

comparing competitors’ products unless 

they are disparaging in a false or 

misleading manner; deceptive; or likely 

to mislead the consumer. 

(2) The taste test procedure used shall 

meet scientifically accepted procedures. 

An example of a scientifically accepted 

procedure is outlined in the Manual on 

Sensory Testing Methods, ASTM 

Special Technical Publication 434, 

published by the American Society for 

Testing and Materials, 1916 Race Street, 

Philadelphia, Pennsylvania 19103, 

ASTM, 1968, Library of Congress 

Catalog Card Number 68–15545. 

(3) A statement shall appear in the 

advertisement providing the name and 

address of the testing administrator. 

Subpart O—Paperwork Reduction Act 

§ 5.241 OMB control numbers assigned 

under the Paperwork Reduction Act. 

(a) Purpose. This subpart displays the 

control numbers assigned to information 

collection requirements in this part by 

the Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act of 1995, Public Law 104–13. 

(b) Table. The following table 

identifies each section in this part that 

contains an information collection 

requirement and the OMB control 

number that is assigned to that 

information collection requirement. 

TABLE 1 TO PARAGRAPH (b) 

Section where contained Current OMB 

control No. 

5.11 ....................................... 1513–0111 

5.21 ....................................... 1513–0020 

5.22 ....................................... 1513–0020 

5.23 ....................................... 1513–0020 

5.24 ....................................... 1513–0020 

1513–0064 

5.25 ....................................... 1513–0020 

5.27 ....................................... 1513–0020 

5.28 ....................................... 1513–0122 

5.29 ....................................... 1513–0020 

5.30 ....................................... 1513–0064 

5.62 ....................................... 1513–0087 

5.63 ....................................... 1513–0084 

1513–0087 

5.82 ....................................... 1513–0121 

5.83 ....................................... 1513–0121 

5.84 ....................................... 1513–0087 

5.87 ....................................... 1513–0087 

5.88 ....................................... 1513–0087 

5.89 ....................................... 1513–0087 

5.90 ....................................... 1513–0087 

5.91 ....................................... 1513–0087 

5.192 ..................................... 1513–0122 

5.193 ..................................... 1513–0122 

5.194 ..................................... 1513–0122 

5.203 ..................................... 1513–0064 

5.205 ..................................... 1513–0020 

5.233 ..................................... 1513–0087 

■ 2. Revise part 7 to read as follows: 

PART 7—LABELING AND 

ADVERTISING OF MALT BEVERAGES 

Sec. 

7.0 Scope. 

Subpart A—General Provisions 

7.1 Definitions. 


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7.2 Territorial extent. 

7.3 General requirements and prohibitions 

under the FAA Act. 

7.4 Jurisdictional limits of the FAA Act. 

7.5 Ingredients and processes. 

7.6 Brewery products not covered by this 

part. 

7.7 Other TTB labeling regulations that 

apply to malt beverages. 

7.8 Malt beverages for export. 

7.9 [Reserved] 

7.10 Other related regulations. 

7.11 Forms. 

7.12 Delegations of the Administrator. 

Subpart B—Certificates of Label Approval 

Requirements for Malt Beverages Bottled in 

the United States 

7.21 Requirement for certificates of label 

approval (COLAs) for malt beverages 

bottled in the United States. 

7.22 Rules regarding certificates of label 

approval (COLAs) for malt beverages 

bottled in the United States. 

7.23 [Reserved] 

Requirements for Malt Beverages Imported 

in Containers 

7.24 Certificates of label approval (COLAs) 

for malt beverages imported in 

containers. 

7.25 Rules regarding certificates of label 

approval (COLAs) for malt beverages 

imported in containers. 

Administrative Rules 

7.27 Presenting certificates of label 

approval (COLAs) to Government 

officials. 

7.28 Formulas, samples, and 

documentation. 

7.29 Personalized labels. 

Subpart C—Alteration of Labels, Relabeling, 

and Adding Information to Containers 

7.41 Alteration of labels. 

7.42 Authorized relabeling activities by 

brewers and importers. 

7.43 Relabeling activities that require 

separate written authorization from TTB. 

7.44 Adding a label or other information to 

a container that identifies the 

wholesaler, retailer, or consumer. 

Subpart D—Label Standards 

7.51 Requirement for firmly affixed labels. 

7.52 Legibility and other requirements for 

mandatory information on labels. 

7.53 Type size of mandatory information 

and alcohol content statements. 

7.54 Visibility of mandatory information. 

7.55 Language requirements. 

7.56 Additional information. 

Subpart E—Mandatory Label Information 

7.61 What constitutes a label for purposes 

of mandatory information. 

7.62 Packaging (cartons, coverings, and 

cases). 

7.63 Mandatory label information. 

7.64 Brand name. 

7.65 Alcohol content. 

7.66 Name and address for domestically 

bottled malt beverages that were wholly 

fermented in the United States. 

7.67 Name and address for domestically 

bottled malt beverages that were bottled 

after importation. 

7.68 Name and address for malt beverages 

that are imported in a container. 

7.69 Country of origin. 

7.70 Net contents. 

Subpart F—Restricted Labeling Statements 

7.81 General. 

Food Allergen Labeling 

7.82 Voluntary disclosure of major food 

allergens. 

7.83 Petitions for exemption from major 

food allergen labeling. 

Production and Other Claims 

7.84 Use of the term ‘‘organic.’’ 

7.85 [Reserved] 

7.86 [Reserved] 

7.87 [Reserved] 

Subpart G—Prohibited Labeling Practices 

7.101 General. 

7.102 False or untrue statements. 

7.103 Obscene or indecent depictions. 

Subpart H—Labeling Practices That Are 

Prohibited if They Are Misleading 

7.121 General. 

7.122 Misleading statements or 

representations. 

7.123 Guarantees. 

7.124 Disparaging statements. 

7.125 Tests or analyses. 

7.126 Depictions of government symbols. 

7.127 [Reserved] 

7.128 Claims related to distilled spirits. 

7.129 Health-related statements. 

7.130 Appearance of endorsement. 

7.131 [Reserved] 

7.132 [Reserved] 

Subpart I—Classes and Types of Malt 

Beverages 

7.141 Class and type. 

7.142 Class designations. 

7.143 Class and type—special rules. 

7.144 Malt beverages fermented or flavored 

with certain traditional ingredients. 

7.145 Malt beverages containing less than 

0.5 percent alcohol by volume. 

7.146 Geographical names. 

7.147 Statement of composition. 

Subparts J–L—[Reserved] 

Subpart M—Penalties and Compromise of 

Liability 

7.221 Criminal penalties. 

7.222 Conditions of basic permit. 

7.223 Compromise. 

Subpart N—Advertising of Malt Beverages 

7.231 Application. 

7.232 Definitions. 

7.233 Mandatory statements. 

7.234 Legibility of mandatory information. 

7.235 Prohibited practices. 

7.236 Comparative advertising. 

Subpart O—Paperwork Reduction Act 

7.241 OMB control numbers assigned under 

the Paperwork Reduction Act. 

Authority: 27 U.S.C. 205 and 207. 

§ 7.0 Scope. 

This part sets forth requirements that 

apply to the labeling and packaging of 

malt beverages in containers, including 

requirements for label approval and 

rules regarding mandatory, regulated, 

and prohibited labeling statements. This 

part also sets forth requirements that 

apply to the advertising of malt 

beverages. 

Subpart A—General Provisions 

§ 7.1 Definitions. 

When used in this part and on forms 

prescribed under this part, the following 

terms have the meaning assigned to 

them in this section, unless the terms 

appear in a context that requires a 

different meaning. Any other term 

defined in the Federal Alcohol 

Administration Act (FAA Act) and used 

in this part has the same meaning 

assigned to it by the FAA Act. 

Administrator. The Administrator, 

Alcohol and Tobacco Tax and Trade 

Bureau, Department of the Treasury. 

Advertisement or Advertising. See 

§ 7.232 for meaning of these terms as 

used in subpart N of this part. 

Appropriate TTB officer. An officer or 

employee of the Alcohol and Tobacco 

Tax and Trade Bureau (TTB) authorized 

to perform any function relating to the 

administration or enforcement of this 

part by the current version of TTB Order 

1135.7, Delegation of the 

Administrator’s Authorities in 27 CFR 

part 7, Labeling and Advertising of Malt 

Beverages. 

Bottler. Any brewer or wholesaler 

who places malt beverages in 

containers. 

Brand name. The name under which 

a malt beverage or a line of malt 

beverages is sold. 

Certificate holder. The permittee or 

brewer whose name, address, and basic 

permit number, plant registry number, 

or brewer’s notice number appears on 

an approved TTB Form 5100.31. 

Certificate of exemption from label 

approval. A certificate issued on TTB 

Form 5100.31, which authorizes the 

bottling of wine or distilled spirits, 

under the condition that the product 

will under no circumstances be sold, 

offered for sale, shipped, delivered for 

shipment, or otherwise introduced by 

the applicant, directly or indirectly, into 

interstate or foreign commerce. 

Certificate of label approval (COLA). 

A certificate issued on form TTB Form 

5100.31 that authorizes the bottling of 

wine, distilled spirits, or malt beverages, 

or the removal of bottled wine, distilled 

spirits, or malt beverages from customs 

custody for introduction into commerce, 

as long as the product bears labels 


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identical to the labels appearing on the 

face of the certificate, or labels with 

changes authorized by TTB on the 

certificate or otherwise (such as through 

the issuance of public guidance 

available on the TTB website at https:// 

www.ttb.gov). 

Container. Any can, bottle, box, cask, 

keg, barrel or other closed receptacle, in 

any size or material, which is for use in 

the sale of malt beverages at retail. 

Customs officer. An officer of U.S. 

Customs and Border Protection (CBP) or 

any agent or other person authorized by 

law to perform the duties of such an 

officer. 

Distinctive or fanciful name. A 

descriptive name or phrase chosen to 

identify a malt beverage product on the 

label. It does not include a brand name, 

class or type designation, statement of 

composition, or designation known to 

the trade or consumers. 

FAA Act. The Federal Alcohol 

Administration Act. 

Gallon. A U.S. gallon of 231 cubic 

inches of malt beverages at 39.1 degrees 

Fahrenheit (4 degrees Celsius). All other 

liquid measures used are subdivisions 

of the gallon as defined. 

Interstate or foreign commerce. 

Commerce between any State and any 

place outside of that State or commerce 

within the District of Columbia or 

commerce between points within the 

same State but through any place 

outside of that State. 

Keg collar. A disk that is pushed 

down over the keg’s bung or tap cover. 

Malt beverage. A beverage made by 

the alcoholic fermentation of an 

infusion or decoction, or combination of 

both, in potable brewing water, of 

malted barley with hops, or their parts, 

or their products, and with or without 

other malted cereals, and with or 

without the addition of unmalted or 

prepared cereals, other carbohydrates or 

products prepared therefrom, and with 

or without the addition of carbon 

dioxide, and with or without other 

wholesome products suitable for human 

food consumption. See § 7.5 for 

standards applying to the use of 

processing methods and flavors in malt 

beverage production. 

Net contents. The amount, by volume, 

of a malt beverage held in a container. 

Permittee. Any person holding a basic 

permit under the FAA Act. 

Person. Any individual, corporation, 

partnership, association, joint-stock 

company, business trust, limited 

liability company, or other form of 

business enterprise, including a 

receiver, trustee, or liquidating agent 

and including an officer or employee of 

any agency of a State or political 

subdivision of a State. 

Responsible advertiser. The permittee 

or brewer responsible for the 

publication or broadcast of an 

advertisement. 

State. One of the 50 States of the 

United States, the District of Columbia, 

or the Commonwealth of Puerto Rico. 

Tap cover. A cap, usually made of 

plastic, that fits over the top of the tap 

(or bung) of a keg. 

TTB. The Alcohol and Tobacco Tax 

and Trade Bureau of the Department of 

the Treasury. 

United States (U.S.). The 50 States, 

the District of Columbia, and the 

Commonwealth of Puerto Rico. 

§ 7.2 Territorial extent. 

The provisions of this part apply to 

the 50 States, the District of Columbia, 

and the Commonwealth of Puerto Rico. 

§ 7.3 General requirements and 

prohibitions under the FAA Act. 

(a) Certificates of label approval 

(COLAs). Subject to the requirements 

and exceptions set forth in the 

regulations in subpart B of this part, any 

brewer or wholesaler who bottles malt 

beverages, and any person who removes 

malt beverages in containers from 

customs custody for sale or any other 

commercial purpose, is required to first 

obtain from TTB a certificate of label 

approval (COLA) covering the label(s) 

on each container. 

(b) Alteration, mutilation, destruction, 

obliteration, or removal of labels. 

Subject to the requirements and 

exceptions set forth in the regulations in 

subpart C of this part, it is unlawful to 

alter, mutilate, destroy, obliterate, or 

remove labels on malt beverage 

containers. This prohibition applies to 

any person, including retailers, holding 

malt beverages for sale in interstate or 

foreign commerce or any person holding 

malt beverages for sale after shipment in 

interstate or foreign commerce. 

(c) Labeling requirements for malt 

beverages. Subject to the jurisdictional 

limits of the FAA Act, as set forth in 

§ 7.4, it is unlawful for any person 

engaged in business as a brewer, 

wholesaler, or importer of malt 

beverages, directly or indirectly, or 

through an affiliate, to sell or ship, or 

deliver for sale or shipment, or 

otherwise introduce or receive in 

interstate or foreign commerce, or 

remove from customs custody, any malt 

beverages in containers unless such 

containers are marked, branded, labeled, 

and packaged in conformity with the 

regulations in this part. 

(d) Labeled in accordance with this 

part. In order to be labeled in 

accordance with the regulations in this 

part, a container of malt beverages must 

be in compliance with the following 

requirements: 

(1) It must bear one or more labels 

meeting the standards for ‘‘labels’’ set 

forth in subpart D of this part; 

(2) One or more of the labels on the 

container must include the mandatory 

information set forth in subpart E of this 

part; 

(3) Claims on any label, container, or 

packaging (as defined in § 7.81) must 

comply with the rules for restricted 

label statements, as applicable, set forth 

in subpart F of this part; 

(4) Statements or any other 

representations on any malt beverage 

label, container, or packaging (as 

defined in §§ 7.101 and 7.121) may not 

violate the regulations in subparts G and 

H of this part regarding certain practices 

on labeling of malt beverages; and 

(5) The class and type designation on 

any label, as well as any designation 

appearing on containers or packaging, 

must comply with the standards for 

classes and types set forth in subpart I 

of this part. 

§ 7.4 Jurisdictional limits of the FAA Act. 

(a) Malt beverages sold in interstate or 

foreign commerce—(1) General. The 

labeling provisions of this part apply to 

malt beverages sold or shipped or 

delivered for shipment, or otherwise 

introduced into or received in any State 

from any place outside thereof, only to 

the extent that the laws or regulations of 

such State impose requirements similar 

to the requirements of the regulations in 

this part, with respect to the labels and 

labeling of malt beverages not sold or 

shipped or delivered for shipment or 

otherwise introduced into or received in 

such State from any place outside 

thereof. 

(2) Similar State law. For purposes of 

this section, a ‘‘similar’’ State law may 

be found in State laws or regulations 

that apply specifically to malt beverages 

or in State laws or regulations that 

provide general labeling requirements 

that are not specific to malt beverages 

but that do apply to malt beverages. In 

order to be ‘‘similar’’ to the Federal 

requirements, the State requirements 

need not be identical to the Federal 

requirements. Nonetheless, if the label 

in question does not violate the laws or 

regulations of the State or States into 

which the brewer, wholesaler, or 

importer is shipping the malt beverages, 

it does not violate this part. 

(b) Malt beverages not sold in 

interstate or foreign commerce. The 

labeling regulations in this part do not 

apply to domestically bottled malt 

beverages that are not and will not be 

sold, or offered for sale, or shipped or 

delivered for shipment, or otherwise 


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introduced in interstate or foreign 

commerce. 

§ 7.5 Ingredients and processes. 

(a) Use of nonbeverage flavors and 

other nonbeverage ingredients 

containing alcohol. (1) Nonbeverage 

flavors and other nonbeverage 

ingredients containing alcohol may be 

used in producing a malt beverage 

(sometimes referred to as a ‘‘flavored 

malt beverage’’). Except as provided in 

paragraph (a)(2) of this section, no more 

than 49 percent of the overall alcohol 

content (determined without regard to 

any tolerance otherwise allowed by this 

part) of the finished product may be 

derived from the addition of 

nonbeverage flavors and other 

nonbeverage ingredients containing 

alcohol. For example, a finished malt 

beverage that contains 5.0 percent 

alcohol by volume must derive a 

minimum of 2.55 percent alcohol by 

volume from the fermentation of barley 

malt and other materials and may derive 

not more than 2.45 percent alcohol by 

volume from the addition of 

nonbeverage flavors and other 

nonbeverage ingredients containing 

alcohol. 

(2) In the case of malt beverages with 

an alcohol content of more than 6 

percent by volume (determined without 

regard to any tolerance otherwise 

allowed by this part), no more than 1.5 

percent of the volume of the malt 

beverage may consist of alcohol derived 

from added nonbeverage flavors and 

other nonbeverage ingredients 

containing alcohol. 

(b) Processing. Malt beverages may be 

filtered or otherwise processed in order 

to remove color, taste, aroma, bitterness, 

or other characteristics derived from 

fermentation. 

§ 7.6 Brewery products not covered by 

this part. 

Certain fermented products that are 

regulated as ‘‘beer’’ under the Internal 

Revenue Code (IRC) do not fall within 

the definition of a ‘‘malt beverage’’ 

under the FAA Act and thus are not 

subject to this part. See § 7.7 for related 

TTB regulations that may apply to these 

products. See §§ 25.11 and 27.11 of this 

chapter for the definition of ‘‘beer’’ 

under the IRC. 

(a) Sake ́ and similar products. Sake ́

and similar products (including 

products that fall within the definition 

of ‘‘beer’’ under parts 25 and 27 of this 

chapter) that fall within the definition of 

a ‘‘wine’’ under the FAA Act are 

covered by the labeling regulations for 

wine in 27 CFR part 4. 

(b) Other beers not made with both 

malted barley and hops. The regulations 

in this part do not cover beer products 

that are not made with both malted 

barley and hops, or their parts or their 

products, or that do not fall within the 

definition of a ‘‘malt beverage’’ under 

§ 7.1 for any other reason. Bottlers and 

importers of alcohol beverages that do 

not fall within the definition of malt 

beverages, wine, or distilled spirits 

under the FAA Act should refer to the 

applicable labeling regulations for foods 

issued by the U.S. Food and Drug 

Administration. See 21 CFR part 101. 

§ 7.7 Other TTB labeling regulations that 

apply to malt beverages. 

In addition to the regulations in this 

part, malt beverages must also comply 

with the following TTB labeling 

regulations: 

(a) Health warning statement. 

Alcoholic beverages, including malt 

beverages, that contain at least 0.5 

percent alcohol by volume, must be 

labeled with a health warning statement 

in accordance with the Alcoholic 

Beverage Labeling Act of 1988 (ABLA). 

The regulations implementing the 

ABLA are contained in 27 CFR part 16. 

(b) Internal Revenue Code 

requirements. The labeling and marking 

requirements for beer under the Internal 

Revenue Code are found in 27 CFR part 

25, subpart J (for domestic breweries) 

and 27 CFR part 27, subpart E (for 

importers). 

§ 7.8 Malt beverages for export. 

The regulations in this part shall not 

apply to malt beverages exported in 

bond. 

§ 7.9 [Reserved] 

§ 7.10 Other related regulations. 

(a) TTB regulations. Other TTB 

regulations that relate to malt beverages 

are listed in paragraphs (a)(1) through 

(8) of this section: 

(1) 27 CFR part 1—Basic Permit 

Requirements Under the Federal 

Alcohol Administration Act, 

Nonindustrial Use of Distilled Spirits 

and Wine, Bulk Sales and Bottling of 

Distilled Spirits; 

(2) 27 CFR part 13—Labeling 

Proceedings; 

(3) 27 CFR part 16—Alcoholic 

Beverage Health Warning Statement; 

(4) 27 CFR part 25—Beer; 

(5) 27 CFR part 26—Liquors and 

Articles from Puerto Rico and the Virgin 

Islands; 

(6) 27 CFR part 27—Importation of 

Distilled Spirits, Wines, and Beer; 

(7) 27 CFR part 28—Exportation of 

Alcohol; and 

(8) 27 CFR part 71—Rules of Practice 

in Permit Proceedings. 

(b) Other Federal regulations. The 

regulations listed in paragraphs (b)(1) 

through (8) of this section issued by 

other Federal agencies also may apply: 

(1) 7 CFR part 205—National Organic 

Program; 

(2) 19 CFR part 11—Packing and 

Stamping; Marking; 

(3) 19 CFR part 102—Rules of Origin; 

(4) 19 CFR part 134—Country of 

Origin Marking; 

(5) 21 CFR part 1—General 

Enforcement Provisions, Subpart H, 

Registration of Food Facilities, and 

Subpart I, Prior Notice of Imported 

Food; 

(6) 21 CFR parts 70–82, which pertain 

to food and color additives; 

(7) 21 CFR part 110—Current Good 

Manufacturing Practice in 

Manufacturing, Packing, or Holding 

Human Food; and 

(8) 21 CFR parts 170–189, which 

pertain to food additives and secondary 

direct food additives for human 

consumption. 

§ 7.11 Forms. 

(a) General. TTB prescribes and 

makes available all forms required by 

this part. Any person completing a form 

must provide all of the information 

required by each form as indicated by 

the headings on the form and the 

instructions for the form. Each form 

must be filed in accordance with this 

part and the instructions for the form. 

(b) Electronically filing forms. The 

forms required by this part can be filed 

electronically by using TTB’s online 

filing systems: COLAs Online and 

Formulas Online. Anyone who intends 

to use one of these online filing systems 

must first register to use the system by 

accessing the TTB website at https://

www.ttb.gov. 

(c) Obtaining paper forms. Forms 

required by this part are available for 

printing through the TTB website 

(https://www.ttb.gov) or by mailing a 

request to the Alcohol and Tobacco Tax 

and Trade Bureau, National Revenue 

Center, 550 Main Street, Room 8002, 

Cincinnati, OH 45202. 

§ 7.12 Delegations of the Administrator. 

Most of the regulatory authorities of 

the Administrator contained in this part 

are delegated to ‘‘appropriate TTB 

officers.’’ To find out which officers 

have been delegated specific authorities, 

see the current version of TTB Order 

1135.7, Delegation of the 

Administrator’s Authorities in 27 CFR 

part 7, Labeling and Advertising of Malt 

Beverages. Copies of this order can be 

obtained by accessing the TTB website 

(https://www.ttb.gov) or by mailing a 

request to the Alcohol and Tobacco Tax 


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and Trade Bureau, National Revenue 

Center, 550 Main Street, Room 8002, 

Cincinnati, OH 45202. 

Subpart B—Certificates of Label 

Approval 

Requirements for Malt Beverages 

Bottled in the United States 

§ 7.21 Requirement for certificates of label 

approval (COLAs) for malt beverages 

bottled in the United States. 

(a) COLA requirement. Subject to the 

requirements and exceptions set forth in 

paragraphs (b) and (c) of this section, a 

brewer or wholesaler bottling malt 

beverages must obtain a certificate of 

label approval (COLA) covering the malt 

beverages from TTB prior to bottling the 

malt beverages or removing the malt 

beverages from the premises where they 

were bottled. 

(b) Malt beverages shipped or sold in 

interstate commerce. Persons bottling 

malt beverages (other than malt 

beverages in customs custody) for 

shipment, or delivery for sale or 

shipment, into a State (from outside of 

that State) are required to obtain a 

COLA covering those malt beverages 

only if the laws or regulations of the 

State require that all malt beverages sold 

or otherwise disposed of in such State 

be labeled in conformity with the 

requirements of subparts D through I of 

this part. This requirement applies 

when the State has either adopted 

subparts D through I of this part in their 

entireties or has adopted requirements 

that are identical in effect to those set 

forth in subparts D through I of this part. 

In accordance with §§ 7.3 and 7.4, malt 

beverages that are not subject to the 

COLA requirements of this section may 

still be subject to the substantive 

labeling provisions of subparts D 

through I of this part to the extent that 

the State into which the malt beverages 

are being shipped has similar State laws 

or regulations. 

(c) Products not shipped or sold in 

interstate commerce. Persons bottling 

malt beverages that will not be shipped 

or delivered for sale or shipment in 

interstate or foreign commerce are not 

required to obtain a COLA or a 

certificate of exemption from label 

approval. (Note: A certificate of 

exemption from label approval is a 

certificate issued by TTB to cover a 

wine or distilled spirits product that 

will not be sold, offered for sale, 

shipped, delivered for shipment, or 

otherwise introduced, in interstate or 

foreign commerce.) 

(d) Evidence of COLA. Upon request 

by the appropriate TTB officer, a bottler 

or importer must provide evidence of 

label approval for a label used on a 

container of malt beverages that is 

subject to the COLA requirements of 

this part. This requirement may be 

satisfied by providing original COLAs, 

photocopies, or electronic copies of 

COLAs, or records showing the TTB 

identification number assigned to the 

approved COLA. 

§ 7.22 Rules regarding certificates of label 

approval (COLAs) for malt beverages 

bottled in the United States. 

(a) What a COLA authorizes. An 

approved TTB Form 5100.31 authorizes 

the bottling of malt beverages covered 

by the certificate of label approval 

(COLA), as long as the container bears 

labels identical to the labels appearing 

on the face of the COLA, or labels with 

changes authorized by TTB on the 

COLA or otherwise, (such as through 

the issuance of public guidance 

available on the TTB website at https:// 

www.ttb.gov). 

(b) When to obtain a COLA. The 

COLA must be obtained prior to 

bottling. No brewer or wholesaler may 

bottle malt beverages or remove malt 

beverages from the premises where 

bottled unless a COLA has been 

obtained. 

(c) Application for a COLA. The 

bottler may apply for a COLA by 

submitting an application to TTB on 

Form 5100.31, in accordance with the 

instructions on the form. The bottler 

may apply for a COLA either 

electronically by accessing TTB’s online 

system, COLAs Online, at https://

www.ttb.gov, or by submitting the paper 

form. For procedures regarding the 

issuance of COLAs, see part 13 of this 

chapter. 

§ 7.23 [Reserved] 

Requirements for Malt Beverages 

Imported in Containers 

§ 7.24 Certificates of label approval 

(COLAs) for malt beverages imported in 

containers. 

(a) Application requirement. Any 

person removing malt beverages in 

containers from customs custody for 

consumption must first apply for and 

obtain a certificate of label approval 

(COLA) covering the malt beverages 

from the appropriate TTB officer, or 

obtain authorization to use the COLA 

from the person to whom the COLA is 

issued. 

(b) Release of malt beverages from 

customs custody. Malt beverages, 

imported in containers, are not eligible 

for release from customs custody for 

consumption, and no person may 

remove such malt beverages from 

customs custody for consumption, 

unless the person removing the malt 

beverages has obtained a COLA covering 

the malt beverages and is able to 

provide it (either electronically or on 

paper) upon request. Products imported 

under another person’s COLA are 

eligible for release only if each bottle or 

individual container to be imported 

bears the name (or trade name) and 

address of the person to whom the 

COLA was issued by TTB, and only if 

the importer using the COLA to obtain 

release of a shipment can substantiate 

that the person to whom the COLA was 

issued has authorized its use by the 

importer. 

(c) Filing requirements. If filing 

electronically, the importer must file 

with U.S Customs and Border Protection 

(CBP), at the time of filing the customs 

entry, the TTB-assigned identification 

number of the valid COLA that 

corresponds to the label on the product 

or lot of malt beverages being imported. 

If the importer is not filing 

electronically, the importer must 

provide a copy of the COLA to CBP at 

the time of entry. In addition, the 

importer must provide a copy of the 

applicable COLA, and proof of the 

COLA holder’s authorization if 

applicable, upon request by the 

appropriate TTB officer or a customs 

officer. 

(d) Evidence of COLA. Upon request 

by the appropriate TTB officer, an 

importer must provide evidence of label 

approval for a label used on a container 

of malt beverages that is subject to the 

COLA requirements of this part. This 

requirement may be satisfied by 

providing original COLAs, photocopies, 

or electronic copies of COLAs, or 

records showing the TTB identification 

number assigned to the approved COLA. 

(e) Scope of this section. The COLA 

requirement imposed by this section 

applies only to malt beverages that are 

removed for sale or any other 

commercial purpose. See 27 CFR 27.49, 

27.74, and 27.75 for labeling exemptions 

applicable to certain imported samples 

of malt beverages. 

(f) Relabeling in customs custody. 

Containers of malt beverages in customs 

custody that are required to be covered 

by a COLA but are not labeled in 

conformity with a COLA must be 

relabeled, under the supervision and 

direction of customs officers, prior to 

their removal from customs custody for 

consumption. 

(g) State law. Paragraphs (a) through 

(c) of this section apply only if the laws 

or regulations of the State in which the 

malt beverages are withdrawn require 

that all malt beverages sold or otherwise 

disposed of in such State be labeled in 

conformity with the requirements of 

subparts D through I of this part. A State 


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requires that malt beverages be labeled 

in conformity with the requirements of 

subparts D through I of this part when 

the State has either adopted subparts D 

through I of this part in their entireties 

or has adopted requirements identical in 

effect to those set forth in subparts D 

through I in this part. In accordance 

with §§ 7.3 and 7.4, malt beverages that 

are not subject to the COLA 

requirements of this section may still be 

subject to the substantive labeling 

provisions of subparts D through I of 

this part to the extent that the State into 

which the malt beverages are being 

shipped has similar State law or 

regulation. 

§ 7.25 Rules regarding certificates of label 

approval (COLAs) for malt beverages 

imported in containers. 

(a) What a COLA authorizes. An 

approved TTB Form 5100.31 authorizes 

the use of the labels covered by the 

certificate of label approval (COLA) on 

containers of malt beverages, as long as 

the container bears labels identical to 

the labels appearing on the face of the 

COLA, or labels with changes 

authorized by the form or otherwise 

authorized by TTB (such as through the 

issuance of public guidance available on 

the TTB website at https://www.ttb.gov). 

(b) When to obtain a COLA. The 

COLA must be obtained prior to the 

removal of malt beverages in containers 

from customs custody for consumption. 

(c) Application for a COLA. The 

person responsible for the importation 

of malt beverages must obtain approval 

of the labels by submitting an 

application to TTB on Form 5100.31. A 

person may apply for a COLA either 

electronically by accessing TTB’s online 

system, COLAs Online, at https://

www.ttb.gov or by submitting the paper 

form. For procedures regarding the 

issuance of COLAs, see part 13 of this 

chapter. 

Administrative Rules 

§ 7.27 Presenting certificates of label 

approval (COLAs) to Government officials. 

A certificate holder must present the 

original or a paper or electronic copy of 

the appropriate certificate of label 

approval (COLA) upon the request of 

any duly authorized representative of 

the United States Government. 

§ 7.28 Formulas, samples, and 

documentation. 

(a) Prior to or in conjunction with the 

review of an application for a certificate 

of label approval (COLA) on TTB Form 

5100.31, the appropriate TTB officer 

may require a bottler or importer to 

submit a formula, the results of 

laboratory testing of the malt beverage, 

or a sample of any malt beverage or 

ingredients used in producing a malt 

beverage. After the issuance of a COLA, 

or with regard to any malt beverage 

required to be covered by a COLA, the 

appropriate TTB officer may require a 

full and accurate statement of the 

contents of the container. 

(b) A formula may be filed 

electronically by using Formulas 

Online, or it may be submitted on paper 

on TTB Form 5100.51. See § 7.11 for 

more information on forms and 

Formulas Online. 

§ 7.29 Personalized labels. 

(a) General. Applicants for label 

approval may obtain permission from 

TTB to make certain changes in order to 

personalize labels without having to 

resubmit labels for TTB approval. A 

personalized label is an alcohol 

beverage label that meets the minimum 

mandatory label requirements and is 

customized for customers. Personalized 

labels may contain a personal message, 

picture, or other artwork that is specific 

to the consumer who is purchasing the 

product. For example, a brewer may 

offer individual or corporate customers 

labels that commemorate an event such 

as a wedding or grand opening. 

(b) Application. Any person who 

intends to offer personalized labels must 

submit a template for the personalized 

label as part of the application for label 

approval required under §§ 7.21 or 7.24, 

and must note on the application a 

description of the specific personalized 

information that may change. 

(c) Approval of personalized label. If 

the application complies with the 

regulations, TTB will issue a certificate 

of label approval (COLA) with a 

qualification allowing the 

personalization of labels. The 

qualification will allow the certificate 

holder to add or change items on the 

personalized label such as salutations, 

names, graphics, artwork, 

congratulatory dates and names, or 

event dates without applying for a new 

COLA. All of these items on 

personalized labels must comply with 

the regulations of this part. 

(d) Changes not allowed to 

personalized labels. Approval of an 

application to personalize labels does 

not authorize the addition of any 

information that discusses either the 

alcohol beverage or characteristics of the 

alcohol beverage or that is inconsistent 

with or in violation of the provisions of 

this part or any other applicable 

provision of law or regulations. 

Subpart C—Alteration of Labels, 

Relabeling, and Adding Information to 

Containers 

§ 7.41 Alteration of labels. 

(a) Prohibition. It is unlawful for any 

person to alter, mutilate, destroy, 

obliterate or remove any mark, brand, or 

label on malt beverages in containers 

held for sale in interstate or foreign 

commerce, or held for sale after 

shipment in interstate or foreign 

commerce, except as authorized by 

§§ 7.42, 7.43, or 7.44, or as otherwise 

authorized by Federal law. 

(b) Authorized relabeling. For 

purposes of the relabeling activities 

authorized by this subpart, the term 

‘‘relabel’’ includes the alteration, 

mutilation, destruction, obliteration, or 

removal of any existing mark, brand, or 

label on the container, as well as the 

addition of a new label (such as a sticker 

that adds information about the product 

or information engraved on the 

container) to the container, and the 

replacement of a label with a new label 

bearing identical information. 

(c) Obligation to comply with other 

requirements. Authorization to relabel 

under this subpart: 

(1) In no way authorizes the 

placement of labels on containers that 

do not accurately reflect the brand, 

bottler, identity, or other characteristics 

of the product; 

(2) Does not relieve the person 

conducting the relabeling operations 

from any obligation to comply with the 

regulations in this part and with State 

or local law: and, 

(3) Does not relieve the person 

conducting the relabeling operations 

from any obligation to obtain 

permission from the owner of the brand 

where otherwise required. 

§ 7.42 Authorized relabeling activities by 

brewers and importers. 

(a) Relabeling at brewery premises. A 

brewer may relabel domestically bottled 

malt beverages prior to removal from, 

and after return to bond at, the brewery 

premises, with labels covered by a 

certificate of label approval (COLA) 

without obtaining separate permission 

from TTB for the relabeling activity, 

provided that the brewer is the 

certificate holder (and bottler). 

(b) Relabeling after removal from 

brewery premises. A brewer may relabel 

domestically bottled malt beverages (or 

direct the relabeling of such malt 

beverages by an authorized agent) after 

removal from brewery premises with 

labels covered by a COLA, without 

obtaining separate permission from TTB 

for the relabeling activity, provided that 


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the brewer is the certificate holder (and 

bottler). 

(c) Relabeling in customs custody. 

Under the supervision of U.S. customs 

officers, imported malt beverages in 

containers in customs custody may be 

relabeled without obtaining separate 

permission from TTB for the relabeling 

activity. Such containers must bear 

labels covered by a certificate of label 

approval (COLA) upon their removal 

from customs custody for consumption. 

See § 7.24(b). 

(d) Relabeling after removal from 

customs custody. The importer of malt 

beverages in containers may relabel 

such malt beverages (or direct the 

relabeling of such malt beverages by an 

authorized agent) after removal from 

customs custody without obtaining 

separate permission from TTB for the 

relabeling activity, as long as the labels 

are covered by a COLA. 

§ 7.43 Relabeling activities that require 

separate written authorization from TTB. 

(a) General. Any permittee or brewer 

holding malt beverages for sale who 

needs to relabel the containers but is not 

the original bottler may apply for 

written permission for the relabeling of 

malt beverage containers. The 

appropriate TTB officer may permit 

relabeling of malt beverages in 

containers if the facts show that the 

relabeling is for the purpose of 

compliance with the requirements of 

this part or State law, or for the purpose 

of replacing damaged labels. 

(b) Application. The written 

application must include: 

(1) Copies of the original and 

proposed new labels; 

(2) The circumstances of the request, 

including the reason for relabeling; 

(3) The number of containers to be 

relabeled; 

(4) The location where the relabeling 

will take place; and, 

(5) The name and address of the 

person who will be conducting the 

relabeling operations. 

§ 7.44 Adding a label or other information 

to a container that identifies the wholesaler, 

retailer, or consumer. 

Any label or other information that 

identifies the wholesaler, retailer, or 

consumer of the malt beverage may be 

added to containers (by the addition of 

stickers, engraving, stenciling, etc.) 

without prior approval from TTB and 

without being covered by a certificate of 

label approval. Such information may 

be added before or after the containers 

are removed from brewery premises or 

released from customs custody. The 

information added: 

(a) May not violate the provisions of 

subparts F, G, and H of this part; 

(b) May not contain any reference to 

the characteristics of the product; and 

(c) May not be added to the container 

in such a way that it obscures any other 

label on the container. 

Subpart D—Label Standards 

§ 7.51 Requirement for firmly affixed 

labels. 

(a) General rule. Except as otherwise 

provided in paragraph (b) of this 

section, any label that is not an integral 

part of the container must be affixed to 

the container in such a way that it 

cannot be removed without thorough 

application of water or other solvents. 

(b) Exception for keg labels. The 

following provisions apply to labels on 

kegs with a capacity of 5.16 gallons or 

more that bear mandatory information, 

as defined by § 7.61(a)(5), and are in the 

form of a keg collar or tap cover, as 

defined in § 7.1. 

(1) Such keg collars or tap covers are 

considered to be firmly affixed if 

removal would break or destroy the keg 

collar or tap cover in such a way that 

it cannot be reused. 

(2) Such keg collars or tap covers are 

not required to be firmly affixed, 

provided that the name of the bottler or 

importer of the malt beverage, as 

applicable under §§ 7.66–7.68, is 

permanently or semi-permanently stated 

on the keg in the form of embossing, 

engraving, stamping, or through the use 

of a sticker or ink jet method. 

(c) This section in no way affects the 

requirements of part 16 of this chapter 

regarding the mandatory health warning 

statement. 

§ 7.52 Legibility and other requirements 

for mandatory information on labels. 

(a) Readily legible. Mandatory 

information on labels must be readily 

legible to potential consumers under 

ordinary conditions. 

(b) Separate and apart. Subject to the 

exceptions below, mandatory 

information on labels, except brand 

names, must be separate and apart from 

any additional information. 

(1) This does not preclude the 

addition of brief optional phrases of 

additional information as part of the 

class or type designation (such as 

‘‘premium malt beverage’’), the name 

and address statement (such as 

‘‘Proudly brewed and bottled by ABC 

Brewing Co. in Pittsburgh, PA, for over 

30 years’’), or other information 

required by § 7.63(a). The statements 

required by § 7.63(b) may not include 

additional information. 

(2) Mandatory information (other than 

an aspartame declaration required by 

§ 7.63(b)(4)) may be contained among 

other descriptive or explanatory 

information if the script, type, or 

printing of the mandatory information is 

substantially more conspicuous than 

that of the descriptive or explanatory 

information. 

(c) Contrasting background. 

Mandatory information must appear in 

a color that contrasts with the 

background on which it appears, except 

that if the net contents or the name and 

address are blown into a glass container, 

they need not be contrasting. The color 

of the container and of the malt 

beverages must be taken into account if 

the label is transparent or if mandatory 

label information is etched, engraved, 

sandblasted, or otherwise carved into 

the surface of the container or is 

branded, stenciled, painted, printed, or 

otherwise directly applied on to the 

surface of the container. Examples of 

acceptable contrasts are: 

(1) Black lettering appearing on a 

white or cream background; or 

(2) White or cream lettering appearing 

on a black background. 

(d) Capitalization. Except for the 

aspartame statement when required by 

§ 7.63(b)(4), which must appear in all 

capital letters, mandatory information 

may appear in all capital letters, in all 

lower case letters, or in mixed-case 

using both capital and lower-case 

letters. 

§ 7.53 Type size of mandatory information 

and alcohol content statements. 

(a) All capital and lowercase letters in 

statements of mandatory information on 

labels must meet the following type size 

requirements. 

(1) Minimum type size—Containers of 

more than one-half pint. All mandatory 

information (including an alcohol 

content statement required by 

§ 7.63(a)(3)) must be in script, type, or 

printing that is at least two millimeters 

in height. 

(2) Minimum type size—Containers of 

one-half pint or less. All mandatory 

information (including an alcohol 

content statement required by 

§ 7.63(a)(3)) must be in script, type, or 

printing that is at least one millimeter 

in height. 

(b) Maximum type size for mandatory 

and optional alcohol content 

statements—(1) Containers of more than 

40 fluid ounces. An alcohol content 

statement, whether required or optional 

under this part, may not appear in 

script, type, or printing that is more 

than four millimeters in height on 

containers of malt beverages of more 

than 40 fluid ounces. 

(2) Containers of 40 fluid ounces or 

less. An alcohol content statement, 

whether required or optional under this 


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part, may not appear in script, type, or 

printing that is more than three 

millimeters in height on containers of 

malt beverages of 40 fluid ounces or 

less. 

§ 7.54 Visibility of mandatory information. 

Mandatory information on a label 

must be readily visible and may not be 

covered or obscured in whole or in part. 

See § 7.62 for rules regarding packaging 

of containers (including cartons, 

coverings, and cases). See subpart N of 

this part for regulations pertaining to 

advertising materials. 

§ 7.55 Language requirements. 

(a) General. Mandatory information 

must appear in the English language, 

with the exception of the brand name 

and except as provided in paragraph (c) 

of this section. 

(b) Foreign languages. Additional 

statements in a foreign language, 

including translations of mandatory 

information that appears elsewhere in 

English on the label, are allowed on 

labels and containers as long as they do 

not in any way conflict with, or 

contradict, the requirements of this part. 

(c) Malt beverages for consumption in 

the Commonwealth of Puerto Rico. 

Mandatory information may be stated 

solely in the Spanish language on labels 

of malt beverages bottled for 

consumption within the Commonwealth 

of Puerto Rico. 

§ 7.56 Additional information. 

Information (other than mandatory 

information) that is truthful, accurate, 

and specific, and that does not violate 

subpart F, G, or H of this part, may 

appear on labels. Such additional 

information may not conflict with, 

modify, qualify or restrict mandatory 

information in any manner. 

Subpart E—Mandatory Label 

Information 

§ 7.61 What constitutes a label for 

purposes of mandatory information. 

(a) Label. Certain information, as 

outlined in § 7.63, must appear on a 

label. When used in this part for 

purposes of determining where 

mandatory information must appear, the 

term ‘‘label’’ includes: 

(1) Material affixed to the container, 

whether made of paper, plastic, metal, 

or other matter; 

(2) For purposes of the net contents 

statement and the name and address 

statement only, information blown, 

embossed, or molded into the container 

as part of the process of manufacturing 

the container; 

(3) Information etched, engraved, 

sandblasted, or otherwise carved into 

the surface of the container; 

(4) Information branded, stenciled, 

painted, printed, or otherwise directly 

applied on to the surface of the 

container; and 

(5) Information on a keg collar or a tap 

cover of a keg, only if it includes 

mandatory information that is not 

repeated elsewhere on a label firmly 

affixed to the container and only if it 

meets the requirements of § 7.51. 

(b) Information appearing elsewhere 

on the container. Information appearing 

on the following parts of the container 

is subject to all of the restrictions and 

prohibitions set forth in subparts F, G, 

and H of this part, but will not satisfy 

any requirements in this part for 

mandatory information that must appear 

on labels: 

(1) Material affixed to, or information 

appearing on, the bottom surface of the 

container; 

(2) Caps, corks, or other closures 

unless authorized to bear mandatory 

information by the appropriate TTB 

officer; and 

(3) Foil or heat shrink bottle capsules. 

(c) Materials not firmly affixed to the 

container. Any materials that 

accompany the container to the 

consumer but are not firmly affixed to 

the container, including booklets, 

leaflets, and hang tags, are not ‘‘labels’’ 

for purposes of this part. Such materials 

are instead subject to the advertising 

regulations in subpart N of this part. 

§ 7.62 Packaging (cartons, coverings, and 

cases). 

(a) General. The term ‘‘packaging’’ 

includes any covering, carton, case, 

carrier, or other packaging of malt 

beverage containers used for sale at 

retail, but does not include shipping 

cartons or cases that are not intended to 

accompany the container to the 

consumer. 

(b) Prohibition. Any packaging of malt 

beverage containers may not contain 

any statement, design, device, or 

graphic, pictorial, or emblematic 

representation that is prohibited on 

labels by regulations in subpart F, G, or 

H of this part. 

(c) Other information on packaging. 

The following requirements apply to 

optional information on packaging. 

(1) The packaging may display any 

information that is not in conflict with 

the labeling on the container or 

containers within the packaging. 

(2) If the packaging displays a brand 

name, it must display the brand name 

in its entirety. For example, if a brand 

name is required to be modified with 

additional information on the container 

or containers within the packaging, the 

packaging must also display the same 

modifying language. 

(3) If the packaging displays a class or 

type designation it must be identical to 

the class or type designation appearing 

on the container or containers within 

the packaging. For example, if the 

packaging displays a class or type 

designation for a specialty product for 

which a statement of composition is 

required on the container, the packaging 

must include the statement of 

composition as well. 

(d) Labeling of containers within the 

packaging. The container or containers 

within the packaging are subject to all 

labeling requirements of this part, 

including mandatory labeling 

information requirements, regardless of 

whether the packaging bears such 

information. 

§ 7.63 Mandatory label information. 

(a) Mandatory information. Malt 

beverage containers must bear a label or 

labels (as defined in § 7.61(a)) 

containing the following information: 

(1) Brand name, in accordance with 

§ 7.64; 

(2) Class, type, or other designation, 

in accordance with subpart I of this part; 

(3) Alcohol content, in accordance 

with § 7.65, for malt beverages that 

contain any alcohol derived from added 

nonbeverage flavors or other added 

nonbeverage ingredients (other than 

hops extract) containing alcohol; 

(4) Name and address of the bottler or 

importer (which may be blown, 

embossed, or molded into the container 

as part of the process of manufacturing 

the container), in accordance with 

§ 7.66, 7.67, or 7.68, as applicable; and 

(5) Net contents (which may be 

blown, embossed, or molded into the 

container as part of the process of 

manufacturing the container), in 

accordance with § 7.70. 

(b) Disclosure of certain ingredients. 

Certain ingredients must be declared on 

a label without the inclusion of any 

additional information as part of the 

statement as follows: 

(1) FD&C Yellow No. 5. If a malt 

beverage contains the coloring material 

FD&C Yellow No. 5, the label must 

include a statement to that effect, such 

as ‘‘FD&C Yellow No. 5’’ or ‘‘Contains 

FD&C Yellow No. 5.’’ 

(2) Cochineal extract or carmine. If a 

malt beverage contains the color 

additive cochineal extract or the color 

additive carmine, the label must include 

a statement to that effect, using the 

respective common or usual name (such 

as, ‘‘contains cochineal extract’’ or 

‘‘contains carmine’’). This requirement 

applies to labels when either of the 


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coloring materials is used in a malt 

beverage that is removed from bottling 

premises or from customs custody on or 

after April 16, 2013. 

(3) Sulfites. If a malt beverage 

contains 10 or more parts per million of 

sulfur dioxide or other sulfiting agent(s) 

measured as total sulfur dioxide, the 

label must include a statement to that 

effect. Examples of acceptable 

statements are ‘‘Contains sulfites’’ or 

‘‘Contains (a) sulfiting agent(s)’’ or a 

statement identifying the specific 

sulfiting agent. The alternative terms 

‘‘sulphites’’ or ‘‘sulphiting’’ may be 

used. 

(4) Aspartame. If the malt beverage 

contains aspartame, the label must 

include the following statement, in 

capital letters, separate and apart from 

all other information: 

‘‘PHENYLKETONURICS: CONTAINS 

PHENYLALANINE.’’ 

§ 7.64 Brand name. 

(a) Requirement. The malt beverage 

label must include a brand name. If the 

malt beverage is not sold under a brand 

name, then the name of the bottler or 

importer, as applicable, appearing in the 

name and address statement is treated 

as the brand name. 

(b) Misleading brand names. Labels 

may not include any misleading brand 

names. A brand name is misleading if it 

creates (by itself or in association with 

other printed or graphic matter) any 

erroneous impression or inference as to 

the age, origin, identity, or other 

characteristics of the malt beverage. A 

brand name that would otherwise be 

misleading may be qualified with the 

word ‘‘brand’’ or with some other 

qualification if the appropriate TTB 

officer determines that the qualification 

dispels any misleading impression that 

might otherwise be created. 

§ 7.65 Alcohol content. 

(a) General. Alcohol content and the 

percentage and quantity of the original 

gravity or extract may be stated on any 

malt beverage label, unless prohibited 

by State law. When alcohol content is 

stated, and the manner of statement is 

not required under State law, it must be 

stated as prescribed in paragraph (b) of 

this section. 

(b) How the alcohol content must be 

expressed. The following rules apply to 

both mandatory and optional statements 

of alcohol content. 

(1) A statement of alcohol content 

must be expressed as a percentage of 

alcohol by volume. Other truthful, 

accurate, and specific factual 

representations of alcohol content, such 

as alcohol by weight, may be made, as 

long as they appear together with, and 

as part of, the statement of alcohol 

content as a percentage of alcohol by 

volume. 

(2) For malt beverages containing one 

half of one percent (0.5 percent) or more 

alcohol by volume, statements of 

alcohol content must be expressed to 

the nearest one-tenth of a percentage 

point, subject to the tolerance permitted 

by paragraph (c) of this section. For malt 

beverages containing less than 0.5 

percent alcohol by volume, alcohol 

content may be expressed either to the 

nearest one-tenth or the nearest onehundredth of a percentage point, and 

such statements are not subject to any 

tolerance. See paragraph (e) of this 

section for the rules applicable to such 

statements. 

(3)(i) The alcohol content statement 

must be expressed in one of the 

following formats: 

(A) ‘‘Alcohol percent by volume’’; 

(B) ‘‘percent alcohol by volume’’; or 

(C) ‘‘Alcohol by volume: percent.’’ 

(ii) Any of the words or symbols may 

be enclosed in parentheses and 

authorized abbreviations may be used 

with or without a period. The alcohol 

content statement does not have to 

appear with quotation marks. 

(4) The statements listed in paragraph 

(b)(3) of this section must appear as 

shown, except that the following 

abbreviations may be used: Alcohol may 

be abbreviated as ‘‘alc’’; percent may be 

represented by the percent symbol ‘‘%’’; 

alcohol and volume may be separated 

by a slash ‘‘/’’ in lieu of the word ‘‘by’’; 

and volume may be abbreviated as 

‘‘vol’’. 

(5) Examples. The following are 

examples of alcohol content statements 

that comply with the requirements of 

this part: 

(i) ‘‘4.2% alc/vol’’; 

(ii) ‘‘Alc. 4.0 percent by vol.’’; 

(iii) ‘‘Alc 4% by vol’’; and 

(iv) ‘‘5.9% Alcohol by Volume.’’ 

(c) Tolerances. Except as provided by 

paragraph (d) of this section, a tolerance 

of 0.3 percentage points will be 

permitted, either above or below the 

stated alcohol content, for malt 

beverages containing 0.5 percent or 

more alcohol by volume. However, any 

malt beverage that is labeled as 

containing 0.5 percent or more alcohol 

by volume may not contain less than 0.5 

percent alcohol by volume, regardless of 

any tolerance. The tolerance provided 

by this paragraph does not apply in 

determining compliance with the 

provisions of § 7.5 regarding the 

percentage of alcohol derived from 

added nonbeverage flavors and other 

nonbeverage ingredients containing 

alcohol. 

(d) Low alcohol and reduced alcohol. 

The terms ‘‘low alcohol’’ or ‘‘reduced 

alcohol’’ may be used only on labels of 

malt beverages containing less than 2.5 

percent alcohol by volume. The actual 

alcohol content may not equal or exceed 

2.5 percent alcohol by volume, 

regardless of any tolerance permitted by 

paragraph (c) of this section. 

(e) Non-alcoholic. The term ‘‘nonalcoholic’’ may be used on labels of malt 

beverages only if the statement 

‘‘contains less than 0.5 percent (or .5%) 

alcohol by volume’’ appears 

immediately adjacent to it, in readily 

legible printing, and on a completely 

contrasting background. No tolerances 

are permitted for malt beverages labeled 

as ‘‘non-alcoholic’’ and containing less 

than 0.5 percent alcohol by volume. A 

malt beverage may not be labeled with 

an alcohol content of 0.0 percent 

alcohol by volume, unless it is also 

labeled as ‘‘alcohol free’’ in accordance 

with paragraph (f) of this section, and 

contains no alcohol. 

(f) Alcohol free. The term ‘‘alcohol 

free’’ may be used only on malt 

beverages containing no alcohol. No 

tolerances are permitted for ‘‘alcohol 

free’’ malt beverages. 

§ 7.66 Name and address for domestically 

bottled malt beverages that were wholly 

fermented in the United States. 

(a) General. Domestically bottled malt 

beverages that were wholly fermented in 

the United States and contain no 

imported malt beverages must be 

labeled in accordance with this section. 

(See §§ 7.67 and 7.68 for name and 

address requirements applicable to malt 

beverages that are not wholly fermented 

in the United States.) 

(b) Mandatory statement. A label on 

the container must state the name and 

address of the bottler, in accordance 

with the rules set forth in this section. 

(c) Form of address. The address 

consists of the city and State and must 

be consistent with the information 

reflected on the brewer’s notice required 

under part 25 of this chapter. Addresses 

may, but are not required to, include 

additional information such as street 

names, counties, zip codes, phone 

numbers, and website addresses. The 

postal abbreviation of the State name 

may be used; for example, California 

may be abbreviated as CA. 

(d) Optional statements. The bottler 

may, but is not required to, be identified 

by a phrase describing the function 

performed by that person, such as 

‘‘bottled by,’’ ‘‘canned by,’’ ‘‘packed 

by,’’ or ‘‘filled by,’’ followed by the 

name and address of the bottler. If one 

person performs more than one 

function, the label may so indicate (for 


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example, ‘‘brewed and bottled by XYZ 

Brewery.’’) If different functions are 

performed by more than one person, 

statements on the label may not create 

the misleading impression that the 

different functions were performed by 

the same person. The appropriate TTB 

officer may require specific information 

about the functions performed if 

necessary to prevent a misleading 

impression on the label. 

(e) Principal place of business. The 

bottler’s principal place of business may 

be shown in lieu of the actual place 

where the malt beverage was bottled if 

the address shown is a location where 

a bottling operation takes place. The 

appropriate TTB officer may disapprove 

the listing of a principal place of 

business if its use would create a false 

or misleading impression as to the 

geographic origin of the malt beverage. 

See 27 CFR 25.141 and 25.142 for 

coding requirements applicable in these 

circumstances. 

(f) Multiple breweries under the same 

ownership. If two or more breweries are 

owned or operated by the same person, 

the place where the malt beverage is 

bottled within the meaning of paragraph 

(a) of this section may be shown in one 

of the following two ways: 

(1) Listing of where bottled. The place 

where the malt beverage is bottled may 

be shown as the only location on the 

label; or 

(2) Listing of all brewer’s locations. 

The place where the malt beverage is 

bottled may appear in a listing of the 

locations of breweries owned by that 

person if the place of bottling is not 

given less emphasis than any of the 

other locations. See 27 CFR 25.141 and 

25.142 for coding requirements 

applicable in these circumstances. 

(g) Malt beverages bottled for another 

person. (1) If malt beverages are bottled 

for another person, the label may state, 

in addition to (but not in lieu of) the 

name and address of the bottler, the 

name and address of such other person, 

immediately preceded by the words 

‘‘brewed and bottled for’’ or ‘‘bottled 

for’’ or another similar appropriate 

phrase. Such statements must clearly 

indicate the relationship between the 

two persons (for example, contract 

brewing). 

(2) If the same brand of malt beverage 

is brewed and bottled by two or more 

breweries that are not under the same 

ownership, the label for each brewery 

may set forth all the locations where 

bottling takes place, as long as the label 

uses the actual location (and not the 

principal place of business) and as long 

as the nature of the arrangement is 

clearly set forth. 

(h) Use of trade names. The name of 

the person appearing on the label may 

be the trade name or the operating 

name, as long as it is identical to a trade 

or operating name appearing on the 

brewer’s notice. 

§ 7.67 Name and address for domestically 

bottled malt beverages that were bottled 

after importation. 

(a) General. This section applies to 

domestically bottled malt beverages that 

were bottled after importation. See 

§ 7.68 for name and address 

requirements applicable to imported 

malt beverages that are imported in a 

container. See 19 CFR parts 102 and 134 

for U.S. Customs and Border Protection 

country of origin marking requirements. 

(b) Malt beverages that were subject to 

blending or other production activities 

after importation. Malt beverages that 

were subject, after importation, to 

blending or other production may not 

bear an ‘‘imported by’’ statement on the 

label, but must instead be labeled in 

accordance with the rules set forth in 

§ 7.66 with regard to mandatory and 

optional labeling statements. 

(c) Malt beverages bottled after 

importation without blending or other 

production activities. The label on malt 

beverages that are bottled without being 

subject to blending or other production 

activities in the United States after the 

malt beverages were imported must 

state the words ‘‘imported by’’ or a 

similar appropriate phrase, followed by 

the name and address of the importer. 

The label must also state the words 

‘‘bottled by’’ or ‘‘packed by,’’ followed 

by the name and address of the bottler, 

except that the following phrases are 

acceptable in lieu of the name and 

address of the bottler under the 

circumstances set forth below: 

(1) If the malt beverages were bottled 

for the person responsible for the 

importation, the words ‘‘imported and 

bottled (canned, packed or filled) in the 

United States for’’ (or a similar 

appropriate phrase) followed by the 

name and address of the principal place 

of business in the United States of the 

person responsible for the importation; 

(2) If the malt beverages were bottled 

by the person responsible for the 

importation, the words ‘‘imported and 

bottled (canned, packed or filled) in the 

United States by’’ (or a similar 

appropriate phrase) followed by the 

name and address of the principal place 

of business in the United States of the 

person responsible for the importation; 

(3) In the situations set forth in 

paragraphs (c)(1) and (2) of this section, 

the address shown on the label may be 

that of the principal place of business of 

the importer who is also the bottler, 

provided that the address shown is a 

location where bottling takes place. 

(d) Use of trade names. A trade name 

may be used if the trade name is listed 

on the importer’s basic permit. 

§ 7.68 Name and address for malt 

beverages that are imported in a container. 

(a) General. This section applies to 

malt beverages that are imported in a 

container, as defined in § 7.1. See § 7.67 

for rules regarding name and address 

requirements applicable to malt 

beverages that are domestically bottled 

after importation. See 19 CFR parts 102 

and 134 for U.S. Customs and Border 

Protection country of origin marking 

requirements. 

(b) Mandatory labeling statement. The 

label on malt beverages imported in 

containers, as defined in § 7.1, must 

state the words ‘‘imported by’’ or a 

similar appropriate phrase, followed by 

the name and address of the importer. 

(1) For purposes of this section, the 

importer is the holder of the importer’s 

basic permit that either makes the 

original customs entry or is the person 

for whom such entry is made, or the 

holder of the importer’s basic permit 

that is the agent, distributor, or 

franchise holder for the particular brand 

of imported alcohol beverages and that 

places the order abroad. 

(2) The address of the importer must 

be stated as the city and State of the 

principal place of business and must be 

consistent with the address reflected on 

the importer’s basic permit. Addresses 

may, but are not required to, include 

additional information such as street 

names, counties, zip codes, phone 

numbers, and website addresses. The 

postal abbreviation of the State name 

may be used; for example, California 

may be abbreviated as CA. 

§ 7.69 Country of origin. 

For U.S. Customs and Border 

Protection (CBP) rules regarding country 

of origin marking requirements, see the 

CBP regulations at 19 CFR parts 102 and 

134. 

§ 7.70 Net contents. 

The following rules apply to the net 

contents statement required by § 7.63. 

(a) The volume of malt beverage in the 

container must appear on a label as a 

net contents statement using the 

following measures: 

(1) If less than one pint, the net 

contents must be stated in fluid ounces 

or fractions of a pint. 

(2) If one pint, one quart, or one 

gallon, the net contents must be so 

stated. 

(3) If more than one pint, but less than 

one quart, the net contents must be 


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stated in fractions of a quart, or in pints 

and fluid ounces. 

(4) If more than one quart, but less 

than one gallon, the net contents must 

be stated in fractions of a gallon, or in 

quarts, pints, and fluid ounces. 

(5) If more than one gallon, the net 

contents must be stated in gallons and 

fractions thereof. 

(b) All fractions must be expressed in 

their lowest denominations. 

(c) Metric measures may be used in 

addition to, but not in lieu of, the U.S. 

customary units of measurement and 

must appear in the same field of vision. 

Subpart F—Restricted Labeling 

Statements 

§ 7.81 General. 

(a) Application. The labeling 

practices, statements, and 

representations in this subpart may be 

used on malt beverage labels only when 

used in compliance with this subpart. In 

addition, if any of the practices, 

statements, or representations in this 

subpart are used elsewhere on 

containers or in packaging, they must 

comply with the requirements of this 

subpart. For purposes of this subpart: 

(1) The term ‘‘label’’ includes all 

labels on malt beverage containers on 

which mandatory information may 

appear, as set forth in § 7.61(a), as well 

as any other label on the container. 

(2) The term ‘‘container’’ includes all 

parts of the malt beverage container, 

including any part of a malt beverage 

container on which mandatory 

information may appear, as well as 

those parts of the container on which 

information does not satisfy mandatory 

labeling requirements, as set forth in 

§ 7.61(b). 

(3) The term ‘‘packaging’’ includes 

any carton, case, carrier, individual 

covering, or other packaging of such 

containers used for sale at retail, but 

does not include shipping cartons or 

cases that are not intended to 

accompany the container to the 

consumer. 

(b) Statement or representation. For 

purposes of this subpart, the term 

‘‘statement or representation’’ includes 

any statement, design, device, or 

representation, and includes pictorial or 

graphic designs or representations as 

well as written ones. The term 

‘‘statement or representation’’ includes 

explicit and implicit statements and 

representations. 

Food Allergen Labeling 

§ 7.82 Voluntary disclosure of major food 

allergens. 

(a) Definitions. For purposes of this 

section, the following terms have the 

meanings indicated. 

(1) Major food allergen means any of 

the following: 

(i) Milk, egg, fish (for example, bass, 

flounder, or cod), Crustacean shellfish 

(for example, crab, lobster, or shrimp), 

tree nuts (for example, almonds, pecans, 

or walnuts), wheat, peanuts, and 

soybeans; or 

(ii) A food ingredient that contains 

protein derived from a food specified in 

paragraph (a)(1)(i) of this section, 

except: 

(A) Any highly refined oil derived 

from a food specified in paragraph 

(a)(1)(i) of this section and any 

ingredient derived from such highly 

refined oil; or 

(B) A food ingredient that is exempt 

from major food allergen labeling 

requirements pursuant to a petition for 

exemption approved by the Food and 

Drug Administration (FDA) under 21 

U.S.C. 343(w)(6) or pursuant to a notice 

submitted to the FDA under 21 U.S.C. 

343(w)(7), provided that the food 

ingredient meets the terms or 

conditions, if any, specified for that 

exemption. 

(2) Name of the food source from 

which each major food allergen is 

derived means the name of the food as 

listed in paragraph (a)(1)(i) of this 

section, except that: 

(i) In the case of a tree nut, it means 

the name of the specific type of nut (for 

example, almonds, pecans, or walnuts); 

(ii) In the case of Crustacean shellfish, 

it means the name of the species of 

Crustacean shellfish (for example, crab, 

lobster, or shrimp); and 

(iii) The names ‘‘egg’’ and ‘‘peanuts,’’ 

as well as the names of the different 

types of tree nuts, may be expressed in 

either the singular or plural form, and 

the names ‘‘soy,’’ ‘‘soybean,’’ or ‘‘soya’’ 

may be used instead of ‘‘soybeans.’’ 

(b) Voluntary labeling standards. 

Major food allergens used in the 

production of a malt beverage product 

may, on a voluntary basis, be declared 

on a label. However, if any one major 

food allergen is voluntarily declared, all 

major food allergens used in production 

of the malt beverage product, including 

major food allergens used as fining or 

processing agents, must be declared, 

except when covered by a petition for 

exemption approved by the appropriate 

TTB officer under § 7.83. The major 

food allergens declaration must consist 

of the word ‘‘Contains’’ followed by a 

colon and the name of the food source 

from which each major food allergen is 

derived (for example, ‘‘Contains: egg’’). 

(c) Cross reference. For mandatory 

labeling requirements applicable to malt 

beverage products containing FD&C 

Yellow No. 5, sulfites, aspartame, and 

cochineal extract or carmine, see 

§ 7.63(b). 

§ 7.83 Petitions for exemption from major 

food allergen labeling. 

(a) Submission of petition. Any 

person may petition the appropriate 

TTB officer to exempt a particular 

product or class of products from the 

labeling requirements of § 7.82. The 

burden is on the petitioner to provide 

scientific evidence (as well as the 

analytical method used to produce the 

evidence) that demonstrates that the 

finished product or class of products, as 

derived by the method specified in the 

petition, either: 

(1) Does not cause an allergic 

response that poses a risk to human 

health; or 

(2) Does not contain allergenic protein 

derived from one of the foods identified 

in § 7.82(a)(1)(i), even though a major 

food allergen was used in production. 

(b) Decision on petition. TTB will 

approve or deny a petition for 

exemption submitted under paragraph 

(a) of this section in writing within 180 

days of receipt of the petition. If TTB 

does not provide a written response to 

the petitioner within that 180-day 

period, the petition will be deemed 

denied unless an extension of time for 

decision is mutually agreed upon by the 

appropriate TTB officer and the 

petitioner. TTB may confer with the 

Food and Drug Administration (FDA) on 

petitions for exemption, as appropriate 

and as FDA resources permit. TTB may 

require the submission of product 

samples and other additional 

information in support of a petition; 

however, unless required by TTB, the 

submission of samples or additional 

information by the petitioner after 

submission of the petition will be 

treated as the withdrawal of the initial 

petition and the submission of a new 

petition. An approval or denial under 

this section will constitute final agency 

action. 

(c) Resubmission of a petition. After a 

petition for exemption is denied under 

this section, the petitioner may resubmit 

the petition along with supporting 

materials for reconsideration at any 

time. TTB will treat this submission as 

a new petition. 

(d) Availability of information—(1) 

General. TTB will promptly post to its 

website (https://www.ttb.gov) all 

petitions received under this section as 

well as TTB’s responses to those 


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petitions. Any information submitted in 

support of the petition that is not posted 

to the TTB website will be available to 

the public pursuant to the Freedom of 

Information Act (5 U.S.C. 552), except 

where a request for confidential 

treatment is granted under paragraph 

(d)(2) of this section. 

(2) Requests for confidential treatment 

of business information. A person who 

provides trade secrets or other 

commercial or financial information in 

connection with a petition for 

exemption under this section may 

request that TTB give confidential 

treatment to that information. A failure 

to request confidential treatment at the 

time the information in question is 

submitted to TTB will constitute a 

waiver of confidential treatment. A 

request for confidential treatment of 

information under this section must 

conform to the following standards: 

(i) The request must be in writing; 

(ii) The request must clearly identify 

the information to be kept confidential; 

(iii) The request must relate to 

information that constitutes trade 

secrets or other confidential, 

commercial, or financial information 

regarding the business transactions of an 

interested person, the disclosure of 

which would cause substantial harm to 

the competitive position of that person; 

(iv) The request must set forth the 

reasons why the information should not 

be disclosed, including the reasons the 

disclosure of the information would 

prejudice the competitive position of 

the interested person; and 

(v) The request must be supported by 

a signed statement by the interested 

person, or by an authorized officer or 

employee of that person, certifying that 

the information in question is a trade 

secret or other confidential, commercial, 

or financial information and that the 

information is not already in the public 

domain. 

Production and Other Claims 

§ 7.84 Use of the term ‘‘organic.’’ 

Use of the term ‘‘organic’’ is permitted 

if any such use complies with the 

United States Department of Agriculture 

(USDA) National Organic Program rules 

(7 CFR part 205), as interpreted by the 

USDA. 

§ 7.85 [Reserved] 

§ 7.86 [Reserved] 

§ 7.87 [Reserved] 

Subpart G—Prohibited Labeling 

Practices 

§ 7.101 General. 

(a) Application. The prohibitions set 

forth in this subpart apply to any malt 

beverage label, container, or packaging. 

For purposes of this subpart: 

(1) The term ‘‘label’’ includes all 

labels on malt beverage containers on 

which mandatory information may 

appear, as set forth in § 7.61(a), as well 

as any other label on the container; 

(2) The term ‘‘container’’ includes all 

parts of the malt beverage container, 

including any part of a malt beverage 

container on which mandatory 

information may appear, as well as 

those parts of the container on which 

information does not satisfy mandatory 

labeling requirements, as set forth in 

§ 7.61(b); and 

(3) The term ‘‘packaging’’ includes 

any carton, case, carrier, individual 

covering, or other packaging of such 

containers used for sale at retail but 

does not include shipping cartons or 

cases that are not intended to 

accompany the container to the 

consumer. 

(b) Statement or representation. For 

purposes of the practices in this subpart, 

the term ‘‘statement or representation’’ 

includes any statement, design, device, 

or representation, and includes pictorial 

or graphic designs or representations as 

well as written ones. The term 

‘‘statement or representation’’ includes 

explicit and implicit statements and 

representations. 

§ 7.102 False or untrue statements. 

Malt beverage labels, containers, or 

packaging may not contain any 

statement or representation that is false 

or untrue in any particular. 

§ 7.103 Obscene or indecent depictions. 

Malt beverage labels, containers, or 

packaging may not contain any 

statement or representation that is 

obscene or indecent. 

Subpart H—Labeling Practices That 

Are Prohibited if They Are Misleading 

§ 7.121 General. 

(a) Application. The labeling practices 

that are prohibited if misleading set 

forth in this subpart apply to any malt 

beverage label, container, or packaging. 

For purposes of this subpart: 

(1) The term ‘‘label’’ includes all 

labels on malt beverage containers on 

which mandatory information may 

appear, as set forth in § 7.61(a), as well 

as any other label on the container; 

(2) The term ‘‘container’’ includes all 

parts of the malt beverage container, 

including any part of a malt beverage 

container on which mandatory 

information may appear, as well as 

those parts of the container on which 

information does not satisfy mandatory 

labeling requirements, as set forth in 

§ 7.61(b); and 

(3) The term ‘‘packaging’’ includes 

any carton, case, carrier, individual 

covering, or other packaging of such 

containers used for sale at retail but 

does not include shipping cartons or 

cases that are not intended to 

accompany the container to the 

consumer. 

(b) Statement or representation. For 

purposes of this subpart, the term 

‘‘statement or representation’’ includes 

any statement, design, device, or 

representation, and includes pictorial or 

graphic designs or representations as 

well as written ones. The term 

‘‘statement or representation’’ includes 

explicit and implicit statements and 

representations. 

§ 7.122 Misleading statements or 

representations. 

(a) General prohibition. Malt beverage 

labels, containers, or packaging may not 

contain any statement or representation, 

irrespective of falsity, that is misleading 

to consumers as to the age, origin, 

identity, or other characteristics of the 

malt beverage, or with regard to any 

other material factor. 

(b) Ways in which statements or 

representations may be found to be 

misleading. (1) A statement or 

representation is prohibited, 

irrespective of falsity, if it directly 

creates a misleading impression or if it 

does so indirectly through ambiguity, 

omission, inference, or by the addition 

of irrelevant, scientific, or technical 

matter. For example, an otherwise 

truthful statement may be misleading 

because of the omission of material 

information, the disclosure of which is 

necessary to prevent the statement from 

being misleading. 

(2) All claims, whether implicit or 

explicit, must have a reasonable basis in 

fact. Any claim on malt beverage labels, 

containers, or packaging that does not 

have a reasonable basis in fact or cannot 

be adequately substantiated upon the 

request of the appropriate TTB officer is 

considered misleading. 

§ 7.123 Guarantees. 

Malt beverage labels, containers, or 

packaging may not contain any 

statement relating to guarantees if the 

appropriate TTB officer finds it is likely 


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to mislead the consumer. However, 

money-back guarantees are not 

prohibited. 

§ 7.124 Disparaging statements. 

(a) General. Malt beverage labels, 

containers, or packaging may not 

contain any false or misleading 

statement that explicitly or implicitly 

disparages a competitor’s product. 

(b) Truthful and accurate 

comparisons. This section does not 

prevent truthful and accurate 

comparisons between products (such as 

‘‘Our ale contains more hops than Brand 

X’’) or statements of opinion (such as 

‘‘We think our beer tastes better than 

any other beer on the market’’). 

§ 7.125 Tests or analyses. 

Malt beverage labels, containers, or 

packaging may not contain any 

statement or representation of or 

relating to analyses, standards, or tests, 

whether or not it is true, that is likely 

to mislead the consumer. An example of 

a misleading statement is ‘‘tested and 

approved by our research laboratories’’ 

if the testing and approval does not in 

fact have any significance. 

§ 7.126 Depictions of government 

symbols. 

Representations of the armed forces 

or flags. Malt beverage labels, 

containers, or packaging may not show 

an image of any government’s flag or 

any representation related to the armed 

forces of the United States if the 

representation, standing alone or 

considered together with any additional 

language or symbols on the label, 

creates a false or misleading impression 

that the product was endorsed by, made 

by, used by, or made under the 

supervision of the government 

represented by that flag or by the armed 

forces of the United States. This section 

does not prohibit the use of a flag as part 

of a claim of American origin or another 

country of origin. 

§ 7.127 [Reserved] 

§ 7.128 Claims related to distilled spirits. 

(a) General. Except as provided in 

paragraph (b) of this section, containers 

of malt beverages, or any labels on such 

containers, or any carton, case, or 

individual covering of such containers, 

used for sale at retail, or any written, 

printed, graphic, or other material 

accompanying such containers to the 

consumer, must not contain any 

statement, design, device, or 

representation that tends to create a 

false or misleading impression that the 

malt beverage contains distilled spirits 

or is a distilled spirits product. 

(b) Exceptions. This section does not 

prohibit: 

(1) A truthful and accurate statement 

of alcohol content, in conformity with 

§ 7.65; 

(2) The use of a brand name of a 

distilled spirits product as a malt 

beverage brand name, provided that the 

overall label does not create a 

misleading impression as to the identity 

of the product; 

(3) The use of a cocktail name as a 

brand name or a distinctive or fanciful 

name of a malt beverage, provided that 

the overall labeling does not present a 

misleading impression about the 

identity of the product; or 

(4) The use of truthful and accurate 

statements about the production of the 

malt beverage as part of a statement of 

composition or otherwise, such as ‘‘aged 

in whisky barrels,’’ as long as such 

statements do not create a misleading 

impression as to the identity of the 

product. 

§ 7.129 Health-related statements. 

(a) Definitions. When used in this 

section, the following terms have the 

meaning indicated: 

(1) Health-related statement means 

any statement related to health (other 

than the warning statement required 

under part 16 of this chapter) and 

includes statements of a curative or 

therapeutic nature that, expressly or by 

implication, suggest a relationship 

between the consumption of alcohol, 

malt beverages, or any substance found 

within the malt beverage, and health 

benefits or effects on health. The term 

includes both specific health claims and 

general references to alleged health 

benefits or effects on health associated 

with the consumption of alcohol, a malt 

beverage, or any substance found within 

the malt beverage product, as well as 

health-related directional statements. 

The term also includes statements and 

claims that imply that a physical or 

psychological sensation results from 

consuming the alcohol beverage 

product, as well as statements and 

claims of nutritional value (for example, 

statements of vitamin content). 

Numerical statements of the calorie, 

carbohydrate, protein, and fat content of 

the product do not constitute claims of 

nutritional value. 

(2) Specific health claim means a type 

of health-related statement that, 

expressly or by implication, 

characterizes the relationship of malt 

beverages, alcohol, or any substance 

found within the malt beverage, to a 

disease or health-related condition. 

Implied specific health claims include 

statements, symbols, vignettes, or other 

forms of communication that suggest, 

within the context in which they are 

presented, that a relationship exists 

between alcohol, malt beverages, or any 

substance found within the malt 

beverage, and a disease or health-related 

condition. 

(3) Health-related directional 

statement means a type of health-related 

statement that directs or refers 

consumers to a third party or other 

source for information regarding the 

effects on health of malt beverage or 

alcohol consumption. 

(b) Rules for malt beverage labels, 

containers, and packaging—(1) Healthrelated statements. In general, malt 

beverage labels, containers, or packaging 

may not contain any health-related 

statement that is untrue in any 

particular or tends to create a 

misleading impression as to the effects 

on health of alcohol consumption. TTB 

will evaluate such statements on a caseby-case basis and may require as part of 

the health-related statement a 

disclaimer or some other qualifying 

statement to dispel any misleading 

impression conveyed by the healthrelated statement. 

(2) Specific health claims. (i) TTB will 

consult with the Food and Drug 

Administration (FDA) as needed on the 

use of specific health claims on labels, 

containers, or packaging. If FDA 

determines that the use of such a claim 

is a drug claim that is not in compliance 

with the requirements of the Federal 

Food, Drug, and Cosmetic Act, TTB will 

not approve the use of that specific 

health claim on the malt beverage label. 

(ii) TTB will approve the use of a 

specific health claim on a malt beverage 

label only if the claim is truthful and 

adequately substantiated by scientific or 

medical evidence; is sufficiently 

detailed and qualified with respect to 

the categories of individuals to whom 

the claim applies; adequately discloses 

the health risks associated with both 

moderate and heavier levels of alcohol 

consumption; and outlines the 

categories of individuals for whom any 

levels of alcohol consumption may 

cause health risks. This information 

must appear as part of the specific 

health claim. 

(3) Health-related directional 

statements. A health-related directional 

statement is presumed misleading 

unless it: 

(i) Directs consumers in a neutral or 

other non-misleading manner to a third 

party or other source for balanced 

information regarding the effects on 

health of malt beverage or alcohol 

consumption; and 

(ii)(A) Includes as part of the healthrelated directional statement the 

following disclaimer: ‘‘This statement 


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should not encourage you to drink or to 

increase your alcohol consumption for 

health reasons’’; or 

(B) Includes as part of the healthrelated directional statement some other 

qualifying statement that the 

appropriate TTB officer finds is 

sufficient to dispel any misleading 

impression conveyed by the healthrelated directional statement. 

§ 7.130 Appearance of endorsement. 

(a) General. Malt beverage labels, 

containers, or packaging may not 

include the name, or the simulation or 

abbreviation of the name, of any living 

individual of public prominence or an 

existing private or public organization, 

or any graphic, pictorial, or emblematic 

representation of the individual or 

organization if its use is likely to lead 

a consumer to falsely believe that the 

product has been endorsed, made, or 

used by, or produced for, or under the 

supervision of, or in accordance with 

the specifications of, such individual or 

organization. This section does not 

prohibit the use of such names where 

the individual or organization has 

provided authorization for their use. 

(b) Disclaimers. Statements or other 

representations do not violate this 

section if, taken as a whole, they create 

no misleading impression as to an 

implied endorsement either because of 

the context in which they are presented 

or because of the use of an adequate 

disclaimer. 

(c) Exception. This section does not 

apply to the use of the name of any 

person engaged in business as a 

producer, importer, bottler, packer, 

wholesaler, retailer, or warehouseman, 

of malt beverages. This section also does 

not apply to the use by any industry 

member of a trade or brand name that 

is the name of any living individual of 

public prominence, or existing private 

or public organization, provided such 

trade or brand name was used by the 

industry member or its predecessors in 

interest prior to August 29, 1935. 

§ 7.131 [Reserved] 

§ 7.132 [Reserved] 

Subpart I—Classes and Types of Malt 

Beverages 

§ 7.141 Class and type. 

(a) Products known to the trade. The 

class of the malt beverage must be stated 

on the label (see § 7.63). The type of the 

malt beverage may be stated, but is not 

required to appear on the label. 

Statements of class and type must 

conform to the designation of the 

product as known to the trade. All parts 

of the designation must appear together. 

(b) Malt beverage specialty products— 

(1) General. A malt beverage specialty 

product is a malt beverage that does not 

fall under any of the class designations 

set forth in §§ 7.142 through 7.144 and 

is not known to the trade under a 

particular designation, usually because 

of the addition of ingredients such as 

colorings, flavorings, or food materials 

or the use of certain types of production 

processes where the appropriate TTB 

officer has not determined that such 

ingredients or processes are generally 

recognized as traditional in the 

production of a fermented beverage 

designated as ‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ 

‘‘stout,’’ ‘‘lager,’’ or ‘‘malt liquor.’’ 

(2) Designation. A malt beverage 

specialty product must be designated 

with a distinctive or fanciful name, 

together with a statement of the 

composition of the product, in 

accordance with § 7.147. This statement 

will be considered the class designation 

for the purposes of this part. All parts 

of the designation must appear together. 

§ 7.142 Class designations. 

The following class designations may 

be used in accordance with this section: 

(a) Any malt beverage, as defined in 

§ 7.1, may be designated simply as a 

‘‘malt beverage.’’ 

(b)(1) The class designations ‘‘beer,’’ 

‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ and 

‘‘malt liquor’’ may be used to designate 

malt beverages that contain at least 0.5 

percent alcohol by volume and that 

conform to the trade understanding of 

those designations. These designations 

may be preceded or followed by 

descriptions of the color of the product 

(such as ‘‘amber,’’ ‘‘brown,’’ ‘‘red,’’ or 

‘‘golden’’) as well as descriptive terms 

such as ‘‘dry,’’ ‘‘export,’’ ‘‘cream,’’ and 

‘‘pale.’’ 

(2) No product other than a malt 

beverage fermented at a comparatively 

high temperature, possessing the 

characteristics generally attributed to 

‘‘ale,’’ ‘‘porter,’’ or ‘‘stout’’ and 

produced without the use of coloring or 

flavoring materials (other than those 

recognized in standard brewing 

practices) may bear any of these class 

designations. 

§ 7.143 Class and type—special rules. 

The following special rules apply to 

specified class and type designations: 

(a) Reconstituted malt beverages. Malt 

beverages that have been concentrated 

by the removal of water therefrom and 

reconstituted by the addition of water 

and carbon dioxide must for the 

purpose of this part be labeled in the 

same manner as malt beverages which 

have not been concentrated and 

reconstituted, except that there must 

appear immediately adjacent to, and as 

a part of, the class designation the 

statement ‘‘PRODUCED FROMll 

lCONCENTRATE’’ (the blank to be 

filled in with the appropriate class 

designation). All parts of the class 

designation must appear in lettering of 

substantially the same size and kind. 

However, ice beers, described in 

paragraph (c) of this section, which are 

produced by the removal of less than 0.5 

percent of the volume of the beer in the 

form of ice crystals and that retain beer 

character are not considered 

concentrated. 

(b) Half and half. No product may be 

designated with the type designation 

‘‘half and half’’ unless it is in fact 

composed of equal parts of two classes 

of malt beverages, the names of which 

are conspicuously stated immediately 

adjacent to the designation ‘‘half and 

half’’ (for example, ‘‘Half and Half, 

Porter and Stout’’). This does not 

preclude the use of terms such as ‘‘half 

and half’’ as part of a distinctive or 

fanciful name that refers to flavors 

added to a malt beverage designated in 

accordance with trade understanding or 

with a statement of composition. 

(c) Ice beer. Malt beverages 

supercooled during the brewing process 

to form ice crystals may be labeled with 

the type designation ‘‘ice’’ preceding the 

class designation (beer, ale, etc.). 

(d) Black and tan. A product 

composed of two classes of malt 

beverages may be designated with the 

type designation ‘‘black and tan,’’ and 

the class and type designation is the 

names of the two classes of malt 

beverages in conjunction with ‘‘black 

and tan’’ (for example, ‘‘Black and Tan, 

Stout and Ale’’). 

(e) Wheat beer. Any ‘‘beer,’’ ‘‘ale,’’ 

‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘malt 

liquor,’’ or other malt beverage made 

from a fermentable base that consists of 

at least 25 percent by weight malted 

wheat may be designated with the type 

designation ‘‘wheat’’ preceding the 

applicable class designation. 

(f) Rye beer. Any ‘‘beer,’’ ‘‘ale,’’ 

‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ ‘‘malt 

liquor,’’ or other malt beverage made 

from a fermentable base that consists of 

at least 25 percent by weight malted rye 

may be designated with the type 

designation ‘‘rye’’ preceding the 

applicable class designation. 

(g) Barley wine ale. The term ‘‘barley 

(or wheat or rye) wine ale’’ or ‘‘barley 

(or wheat or rye) wine style ale’’ may be 

used in accordance with trade 

understanding. 

(h) Malt beverages aged in barrels—(1) 

General. Label designations for malt 

beverages aged in barrels or with 

woodchips, spirals, or staves derived 


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from barrels may, but are not required 

to, include a description of how the 

product was aged. Thus, for example, 

acceptable designations for a standard 

beer aged in an oak barrel would 

include ‘‘beer,’’ ‘‘oak aged beer,’’ and 

‘‘beer aged in an oak barrel.’’ 

(2) Barrels previously used in the 

production or storage of wine or 

distilled spirits. Malt beverages aged in 

barrels previously used in the 

production or storage of wine or 

distilled spirits, or with woodchips, 

spirals, or staves derived from barrels 

previously used in the production or 

storage of wine or distilled spirits, or 

from woodchips previously used in the 

aging of distilled spirits or wine may, 

but are not required to, include a 

description of how the product was 

aged. 

(i) Examples of acceptable 

designations for a standard beer aged in 

a wine barrel include ‘‘beer,’’ ‘‘beer aged 

in a wine barrel,’’ and ‘‘wine barrel aged 

beer.’’ 

(ii) Examples of acceptable 

designations for an ale brewed with 

honey and aged in a bourbon barrel 

include ‘‘honey ale’’ and ‘‘bourbon 

barrel aged honey ale’’ but not simply 

‘‘ale’’ or ‘‘bourbon barrel aged ale.’’ 

(3) Misleading designations. 

Designations that create a misleading 

impression as to the identity of the 

product by emphasizing certain words 

or terms are prohibited. As set forth in 

§ 7.122, designations may not mislead 

consumers as to the age, origin, identity, 

or other characteristics of the malt 

beverage. Examples of designations that 

would be prohibited under this 

provision are ‘‘bourbon ale,’’ ‘‘bourbonflavored lager,’’ ‘‘Chardonnay lager,’’ or 

‘‘lager with whisky flavors.’’ 

(i) Other designations. Other type 

designations (such as ‘‘milk’’ preceding 

the class designation ‘‘stout’’) may be 

applied in conformance with trade 

understanding. 

§ 7.144 Malt beverages fermented or 

flavored with certain traditional ingredients. 

(a) General. Any malt beverage that 

has been fermented or flavored only 

with one or more ingredients (such as 

honey or certain fruits) that the 

appropriate TTB officer has determined 

are generally recognized as traditional 

ingredients in the production of a 

fermented beverage designated as 

‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ 

or ‘‘malt liquor’’ may be labeled in 

accordance with trade understanding 

following the rules set forth in this 

section. 

(1) A list of such traditional 

ingredients may be found on the TTB 

website (https://www.ttb.gov). 

(2) If the malt beverage has also been 

fermented or flavored with ingredients 

that the appropriate TTB officer has not 

determined are generally recognized as 

traditional ingredients in the production 

of a fermented beverage designated as 

‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ 

or ‘‘malt liquor,’’ it is a malt beverage 

specialty and must be labeled in 

accordance with the statement of 

composition rules in § 7.147. 

(b) Rules for designation. (1) A 

designation in accordance with trade 

understanding must identify the base 

product, such as ‘‘malt beverage,’’ 

‘‘beer,’’ ‘‘ale,’’ ‘‘porter,’’ ‘‘stout,’’ ‘‘lager,’’ 

or ‘‘malt liquor’’ along with a modifier 

or explanation that provides the 

consumer with adequate information 

about the fruit, honey, or other food 

ingredient used in production of the 

malt beverage. The label may include 

additional information about the 

production process (such as ‘‘beer 

fermented with cherry juice’’). 

(2) Where more than one exempted 

ingredient is included, a designation in 

accordance with trade understanding 

may identify each ingredient (such as 

‘‘Ale with cherry juice, cinnamon, and 

nutmeg’’), refer to the ingredients by 

category (such as ‘‘Fruit ale,’’ ‘‘Spiced 

ale,’’ or ‘‘Ale with natural flavors’’), or 

simply include the ingredient or 

ingredients that the bottler or importer 

believes best identify the product (such 

as ‘‘Cherry ale,’’ ‘‘Cinnamon ale,’’ or 

‘‘Nutmeg ale’’). The designation must 

distinguish the product from a malt 

beverage, beer, ale, porter, stout, lager, 

or malt liquor that is not brewed or 

flavored with any of these ingredients; 

thus, unmodified designations such as 

‘‘beer,’’ ‘‘stout,’’ or ‘‘ale’’ would not be 

acceptable. 

(c) Other requirements. All parts of 

the designation must appear together 

and must be readily legible on a 

contrasting background. Designations 

that create a misleading impression as to 

the identity of the product by 

emphasizing certain words or terms are 

prohibited. 

§ 7.145 Malt beverages containing less 

than 0.5 percent alcohol by volume. 

(a) Products containing less than 0.5 

percent of alcohol by volume must bear 

the class designation ‘‘malt beverage,’’ 

‘‘cereal beverage,’’ or ‘‘near beer.’’ 

(b) If the designation ‘‘near beer’’ is 

used, both words must appear in the 

same size and style of type, in the same 

color of ink, and on the same 

background. 

(c) No product containing less than 

0.5 percent of alcohol by volume may 

bear the class designations ‘‘beer,’’ 

‘‘lager beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ 

‘‘stout,’’ or any other class or type 

designation commonly applied to malt 

beverages containing 0.5 percent or 

more of alcohol by volume. 

§ 7.146 Geographical names. 

(a) Geographical names for distinctive 

types of malt beverages (other than 

names found under paragraph (b) of this 

section to have become generic) shall 

not be applied to malt beverages 

produced in any place other than the 

particular region indicated by the name 

unless: 

(1) In direct conjunction with the 

name there appears the word ‘‘type’’ or 

the word ‘‘American’’, or some other 

statement indicating the true place of 

production in lettering substantially as 

conspicuous as such name; and 

(2) The malt beverages to which the 

name is applied conform to the type so 

designated. The following are examples 

of distinctive types of beer with 

geographical names that have not 

become generic; Dortmund, 

Dortmunder, Vienna, Wien, Wiener, 

Bavarian, Munich, Munchner, Salvator, 

Kulmbacher, Wurtzburger, Pilsen 

(Pilsener and Pilsner): Provided, That 

notwithstanding the foregoing 

provisions of this section, beer which is 

produced in the United States may be 

designated as ‘‘Pilsen,’’ ‘‘Pilsener,’’ or 

‘‘Pilsner’’ without further modification, 

if it conforms to such type. 

(b) Only such geographical names for 

distinctive types of malt beverages as 

the appropriate TTB officer finds have 

by usage and common knowledge lost 

their geographical significance to such 

an extent that they have become generic 

shall be deemed to have become 

generic, e.g., India Pale Ale. 

(c) Except as provided in § 7.64(b), 

geographical names that are not names 

for distinctive types of malt beverages 

shall not be applied to malt beverages 

produced in any place other than the 

particular place or region indicated in 

the name. 

§ 7.147 Statement of composition. 

(a) A statement of composition is 

required to appear on the label for malt 

beverage specialty products, as defined 

in § 7.141(b), which are not known to 

the trade under a particular designation. 

For example, the addition of flavoring 

materials, colors, or artificial sweeteners 

may change the class and type of the 

malt beverage. The statement of 

composition along with a distinctive or 

fanciful name serves as the class and 

type designation for these products. 

(b) When required by this part, a 

statement of composition must contain 

all of the following information, as 

applicable: 


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(1) Identify the base class and/or type 

designation. The statement of 

composition must clearly identify the 

base class and/or type designation of the 

malt beverage product (e.g., ‘‘beer,’’ 

‘‘lager beer,’’ ‘‘lager,’’ ‘‘ale,’’ ‘‘porter,’’ 

‘‘stout,’’ or ‘‘malt beverage’’). 

(2) Identify added flavoring 

material(s) used before, during, and 

after fermentation. The statement of 

composition must disclose fermentable 

or non-fermentable flavoring materials 

added to the malt beverage base class. 

(i) If the flavoring material is used 

before or during the fermentation 

process, the statement of composition 

must indicate that the malt beverage 

was fermented or brewed with the 

flavoring material (such as ‘‘Beer 

Fermented with grapefruit juice’’ or 

‘‘Grapefruit Ale’’). If the flavoring 

material is added after fermentation, the 

statement of composition must describe 

that process, using terms such as 

‘‘added,’’ ‘‘with,’’ ‘‘infused,’’ or 

‘‘flavored’’ (such as ‘‘Grapefruit-flavored 

ale.’’). 

(ii) If a single flavoring material is 

used in the production of the malt 

beverage product, the flavoring material 

may be specifically identified (such as 

‘‘Ale Fermented with grapefruit juice’’) 

or generally referenced (such as ‘‘Ale 

with natural flavor’’). If two or more 

flavoring materials are used in the 

production of the malt beverage, each 

flavoring material may be specifically 

identified (such as ‘‘lemon juice, kiwi 

juice’’ or ‘‘lemon and kiwi juice’’) or the 

characterizing flavoring material may be 

specifically identified and the 

remaining flavoring materials may be 

generally referenced (such as ‘‘kiwi and 

other natural and artificial flavor(s)’’), or 

all flavors may be generally referenced 

(such as ‘‘with artificial flavors’’). 

(3) Identify added coloring 

material(s). The statement of 

composition must disclose the addition 

of coloring material(s), whether added 

directly or through flavoring material(s). 

The coloring materials may be identified 

specifically (such as ‘‘caramel color,’’ 

‘‘FD&C Red #40,’’ ‘‘annatto,’’ etc.) or as 

a general statement, such as ‘‘Contains 

certified color’’ for colors approved 

under 21 CFR subpart 74 or ‘‘artificially 

colored’’ to indicate the presence of any 

one or a combination of coloring 

material(s). However, FD&C Yellow No. 

5, carmine, and cochineal extract 

require specific disclosure in 

accordance with § 7.63(b)(1) and (2) and 

that specific disclosure may appear 

either in the statement of composition 

or elsewhere in accordance with those 

sections. 

(4) Identify added artificial 

sweeteners. The statement of 

composition must disclose any artificial 

sweetener that is added to a malt 

beverage product, whether the artificial 

sweetener is added directly or through 

flavoring material(s). The artificial 

sweetener may be identified specifically 

by either generic name or trademarked 

brand name, or as a general statement 

(such as ‘‘artificially sweetened’’) to 

indicate the presence of any one or 

combination of artificial sweeteners. 

However, if aspartame is used, an 

additional warning statement is 

required in accordance with § 7.63(b)(4). 

Subparts J–L—[Reserved] 

Subpart M—Penalties and 

Compromise of Liability 

§ 7.221 Criminal penalties. 

A violation of the labeling provisions 

of 27 U.S.C. 205(e) is punishable as a 

misdemeanor. See 27 U.S.C. 207 for the 

statutory provisions relating to criminal 

penalties, consent decrees, and 

injunctions. 

§ 7.222 Conditions of basic permit. 

A basic permit is conditioned upon 

compliance with the requirements of 27 

U.S.C. 205, including the labeling and 

advertising provisions of this part. A 

willful violation of the conditions of a 

basic permit provides grounds for the 

revocation or suspension of the permit, 

as applicable, as set forth in part 1 of 

this chapter. 

§ 7.223 Compromise. 

Pursuant to 27 U.S.C. 207, the 

appropriate TTB officer is authorized, 

with respect to any violation of 27 

U.S.C. 205, to compromise the liability 

arising with respect to such violation 

upon payment of a sum not in excess of 

$500 for each offense, to be collected by 

the appropriate TTB officer and to be 

paid into the Treasury as miscellaneous 

receipts. 

Subpart N—Advertising of Malt 

Beverages 

§ 7.231 Application. 

No person engaged in business as a 

brewer, wholesaler, or importer, of malt 

beverages directly or indirectly or 

through an affiliate, shall publish or 

disseminate or cause to be published or 

disseminated by radio or television 

broadcast, or in any newspaper, 

periodical, or any publication, by any 

sign or outdoor advertisement, or by 

electronic or internet media, or in any 

other printed or graphic matter, any 

advertisement of malt beverages, if such 

advertising is in, or is calculated to 

induce sales in, interstate or foreign 

commerce, or is disseminated by mail, 

unless such advertisement is in 

conformity with this subpart: Provided, 

That such sections shall not apply to 

outdoor advertising in place on 

September 7, 1984, but shall apply upon 

replacement, restoration, or renovation 

of any such advertising; and provided 

further, that this subpart shall apply to 

advertisements of malt beverages 

intended to be sold or shipped or 

delivered for shipment, or otherwise 

introduced into or received in any State 

from any place outside thereof, only to 

the extent that the laws of such State 

impose similar requirements with 

respect to advertisements of malt 

beverages manufactured and sold or 

otherwise disposed of in such State. 

And provided further that such sections 

shall not apply to a retailer or the 

publisher of any newspaper, periodical, 

or other publication, or radio or 

television or internet broadcast, unless 

such retailer or publisher or broadcaster 

is engaged in business as a brewer, 

wholesaler, bottler, or importer of malt 

beverages, directly or indirectly, or 

through an affiliate. 

§ 7.232 Definitions. 

As used in this subpart, the term 

‘‘advertisement’’ or ‘‘advertising’’ 

includes any written or verbal 

statement, illustration, or depiction 

which is in, or calculated to induce 

sales in, interstate or foreign commerce, 

or is disseminated by mail, whether it 

appears in a newspaper, magazine, trade 

booklet, menu, wine card, leaflet, 

circular, mailer, book insert, catalog, 

promotional material, sales pamphlet, 

internet or other electronic site or social 

network, or in any written, printed, 

graphic, or other matter (such as hang 

tags) accompanying, but not firmly 

affixed to, the container, representations 

made on shipping cases, or in any 

billboard, sign, or other outdoor display, 

public transit card, other periodical 

literature, publication, or in a radio or 

television broadcast, or in any other 

media; except that such term shall not 

include: 

(a) Any label affixed to any container 

of malt beverages; or any coverings, 

cartons, or cases of containers of malt 

beverages used for sale at retail which 

constitute a part of the labeling under 

this part. 

(b) Any editorial or other reading 

material (such as a news release) in any 

periodical or publication or newspaper, 

for the publication of which no money 

or valuable consideration or thing of 

value is paid or promised, directly or 

indirectly, by any permittee or brewer, 

and which is not written by or at the 

direction of the permittee or brewer. 


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§ 7.233 Mandatory statements. 

(a) Responsible advertiser. The 

advertisement must display the 

responsible advertiser’s name, city, and 

State or the name and other contact 

information (such as, telephone number, 

website, or email address) where the 

responsible advertiser may be contacted. 

(b) Class. The advertisement shall 

contain a conspicuous statement of the 

class to which the product belongs, 

corresponding to the statement of class 

which is required to appear on the label 

of the product. 

(c) Exception. (1) If an advertisement 

refers to a general malt beverage line or 

all of the malt beverage products of one 

company, whether by the company 

name or by the brand name common to 

all the malt beverages in the line, the 

only mandatory information necessary 

is the responsible advertiser’s name, 

city, and State or the name and other 

contact information (such as telephone 

number, website, or email address) 

where the responsible advertiser may be 

contacted. This exception does not 

apply where only one type of malt 

beverage is marketed under the specific 

brand name advertised. 

(2) On consumer specialty items, the 

only information necessary is the 

company name or brand name of the 

product. 

§ 7.234 Legibility of mandatory 

information. 

(a) Statements required under this 

subpart that appear in any written, 

printed, or graphic advertisement must 

be in lettering or type size sufficient to 

be conspicuous and readily legible. 

(b) In the case of signs, billboards, and 

displays the name and address or name 

and other contact information (such as, 

telephone number, website, or email) of 

the permittee responsible for the 

advertisement may appear in type size 

of lettering smaller than the other 

mandatory information, provided such 

information can be ascertained upon 

closer examination of the sign or 

billboard. 

(c) Mandatory information must be so 

stated as to be clearly a part of the 

advertisement and may not be separated 

in any manner from the remainder of 

the advertisement. 

(d) Mandatory information for two or 

more products shall not be stated unless 

clearly separated. 

(e) Mandatory information must be so 

stated in both the print and audiovisual 

media that it will be readily apparent to 

the persons viewing the advertisement. 

§ 7.235 Prohibited practices. 

(a) General prohibition. An 

advertisement of malt beverages must 

not contain: 

(1) Any statement that is false or 

untrue in any material particular, or 

that, irrespective of falsity, directly, or 

by ambiguity, omission, or inference, or 

by the addition of irrelevant, scientific 

or technical matter, tends to create a 

misleading impression. 

(2) Any false or misleading statement 

that explicitly or implicitly disparages a 

competitor’s product. This does not 

prevent truthful and accurate 

comparisons between products (such as 

‘‘Our ale contains more hops than Brand 

X’’) or statements of opinion (such as 

‘‘We think our beer tastes better than 

any other beer on the market’’). 

(3) Any statement, design, device, or 

representation which is obscene or 

indecent. 

(4) Any statement, design, device, or 

representation of or relating to analyses, 

standards, or tests, irrespective of 

falsity, which the appropriate TTB 

officer finds to be likely to mislead the 

consumer. 

(5) Any statement, design, device, or 

representation of or relating to any 

guarantee, irrespective of falsity, which 

the appropriate TTB officer finds to be 

likely to mislead the consumer. Moneyback guarantees are not prohibited. 

(6) [Reserved]. 

(7) [Reserved]. 

(8) Any statement, design, device, or 

representation that tends to create a 

false or misleading impression that the 

malt beverage contains distilled spirits 

or is a distilled spirits product. 

Advertisements may include the types 

of statements that are listed as being not 

prohibited on labels in § 7.128(b). 

(b) Statements inconsistent with 

labeling. (1) Advertisements shall not 

contain any statement concerning a 

brand or lot of malt beverages that is 

inconsistent with any statement on the 

labeling thereof. 

(2) Any label depicted on a container 

in an advertisement shall be a 

reproduction of an approved label, 

except that malt beverage labels not 

required to be covered by a COLA in 

accordance with the rules in § 7.21 of 

this chapter may also appear on 

advertisements. 

(c) [Reserved] 

(d) Class. (1) No product containing 

less than 0.5 percent of alcohol by 

volume shall be designated in any 

advertisement as ‘‘beer’’, ‘‘lager beer’’, 

‘‘lager’’, ‘‘ale’’, ‘‘porter’’, or ‘‘stout’’, or 

by any other class or type designation 

commonly applied to fermented malt 

beverages containing 0.5 percent or 

more of alcohol by volume. 

(2) No product other than a malt 

beverage fermented at comparatively 

high temperature, possessing the 

characteristics generally attributed to 

‘‘ale,’’ ‘‘porter,’’ or ‘‘stout’’ and 

produced without the use of coloring or 

flavoring materials (other than those 

recognized in standard brewing 

practices) shall be designated in any 

advertisement by any of these class 

designations. 

(e) Health-related statements—(1) 

Definitions. When used in this 

paragraph (e), terms are defined as 

follows: 

(i) Health-related statement means 

any statement related to health and 

includes statements of a curative or 

therapeutic nature that, expressly or by 

implication, suggest a relationship 

between the consumption of alcohol, 

malt beverages, or any substance found 

within the malt beverage, and health 

benefits or effects on health. The term 

includes both specific health claims and 

general references to alleged health 

benefits or effects on health associated 

with the consumption of alcohol, malt 

beverages, or any substance found 

within the malt beverage, as well as 

health-related directional statements. 

The term also includes statements and 

claims that imply that a physical or 

psychological sensation results from 

consuming the malt beverage, as well as 

statements and claims of nutritional 

value (e.g., statements of vitamin 

content). Statements concerning caloric, 

carbohydrate, protein, and fat content 

do not constitute nutritional claims 

about the product. 

(ii) Specific health claim is a type of 

health-related statement that, expressly 

or by implication, characterizes the 

relationship of the malt beverage, 

alcohol, or any substance found within 

the malt beverage, to a disease or healthrelated condition. Implied specific 

health claims include statements, 

symbols, vignettes, or other forms of 

communication that suggest, within the 

context in which they are presented, 

that a relationship exists between malt 

beverages, alcohol, or any substance 

found within the malt beverage, and a 

disease or health-related condition. 

(iii) Health-related directional 

statement is a type of health-related 

statement that directs or refers 

consumers to a third party or other 

source for information regarding the 

effects on health of malt beverage or 

alcohol consumption. 

(2) Rules for advertising—(i) Healthrelated statements. In general, 

advertisements may not contain any 

health-related statement that is untrue 

in any particular or tends to create a 

misleading impression as to the effects 


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on health of alcohol consumption. TTB 

will evaluate such statements on a caseby-case basis and may require as part of 

the health-related statement a 

disclaimer or some other qualifying 

statement to dispel any misleading 

impression conveyed by the healthrelated statement. Such disclaimer or 

other qualifying statement must appear 

as prominent as the health-related 

statement. 

(ii) Specific health claims. A specific 

health claim will not be considered 

misleading if it is truthful and 

adequately substantiated by scientific or 

medical evidence; sufficiently detailed 

and qualified with respect to the 

categories of individuals to whom the 

claim applies; adequately discloses the 

health risks associated with both 

moderate and heavier levels of alcohol 

consumption; and outlines the 

categories of individuals for whom any 

levels of alcohol consumption may 

cause health risks. This information 

must appear as part of the specific 

health claim and in a manner as 

prominent as the specific health claim. 

(iii) Health-related directional 

statements. A statement that directs 

consumers to a third party or other 

source for information regarding the 

effects on health of malt beverage or 

alcohol consumption is presumed 

misleading unless it— 

(A) Directs consumers in a neutral or 

other non-misleading manner to a third 

party or other source for balanced 

information regarding the effects on 

health of malt beverage or alcohol 

consumption; and 

(B)(1) Includes as part of the healthrelated directional statement, and in a 

manner as prominent as the healthrelated directional statement, the 

following disclaimer: ‘‘This statement 

should not encourage you to drink or 

increase your alcohol consumption for 

health reasons;’’ or 

(2) Includes as part of the healthrelated directional statement, and in a 

manner as prominent as the healthrelated directional statement, some 

other qualifying statement that the 

appropriate TTB officer finds is 

sufficient to dispel any misleading 

impression conveyed by the healthrelated directional statement. 

(f) Confusion of brands. Two or more 

different brands or lots of malt 

beverages shall not be advertised in one 

advertisement (or in two or more 

advertisements in one issue of a 

periodical or a newspaper or in one 

piece of other written, printed, or 

graphic matter) if the advertisement 

tends to create the impression that 

representations made as to one brand or 

lot apply to the other or others, and if 

as to such latter the representations 

contravene any provision of this subpart 

or are in any respect untrue. 

(g) Representations of the armed 

forces or flags. Advertisements may not 

show an image of any government’s flag 

or any representation related to the 

armed forces of the United States if the 

representation, standing alone or 

considered together with any additional 

language or symbols, creates a false or 

misleading impression that the product 

was endorsed by, made by, used by, or 

made under the supervision of, the 

government represented by that flag or 

by the armed forces of the United States. 

This section does not prohibit the use of 

a flag as part of a claim of American 

origin or another country of origin. 

(h) Deceptive advertising techniques. 

Subliminal or similar techniques are 

prohibited. ‘‘Subliminal or similar 

techniques,’’ as used in this part, refers 

to any device or technique that is used 

to convey, or attempts to convey, a 

message to a person by means of images 

or sounds of a very brief nature that 

cannot be perceived at a normal level of 

awareness. 

(i) Organic. Any use of the term 

‘‘organic’’ in the advertising of malt 

beverages must comply with the United 

States Department of Agriculture’s 

(USDA) National Organic Program rules, 

7 CFR part 205, as interpreted by the 

USDA. 

§ 7.236 Comparative advertising. 

(a) General. Comparative advertising 

shall not be disparaging of a 

competitor’s product in a manner that is 

false or misleading. 

(b) Taste tests. (1) Taste test results 

may be used in advertisements 

comparing competitors’ products unless 

they are disparaging in a false or 

misleading manner, deceptive, or likely 

to mislead the consumer. 

(2) The taste test procedure used shall 

meet scientifically accepted procedures. 

An example of a scientifically accepted 

procedure is outlined in the Manual on 

Sensory Testing Methods, ASTM 

Special Technical Publication 434, 

published by the American Society for 

Testing and Materials, 1916 Race Street, 

Philadelphia, Pennsylvania 19103, 

ASTM, 1968, Library of Congress 

Catalog Card Number 68–15545. 

(3) A statement shall appear in the 

advertisement providing the name and 

address of the testing administrator. 

Subpart O—Paperwork Reduction Act 

§ 7.241 OMB control numbers assigned 

under the Paperwork Reduction Act. 

(a) Purpose. This subpart displays the 

control numbers assigned to information 

collection requirements in this part by 

the Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act of 1995, Public Law 104–13. 

(b) Table. The following table 

identifies each section in this part that 

contains an information collection 

requirement and the OMB control 

number that is assigned to that 

information collection requirement. 

TABLE 1 TO PARAGRAPH (b) 

Section where contained Current OMB 

Control No. 

7.11 ....................................... 1513–0111 

7.21 ....................................... 1513–0020 

7.22 ....................................... 1513–0020 

7.24 ....................................... 1513–0020 

1513–0064 

7.25 ....................................... 1513–0020 

7.27 ....................................... 1513–0020 

7.28 ....................................... 1513–0122 

7.29 ....................................... 1513–0020 

7.62 ....................................... 1513–0087 

7.63 ....................................... 1513–0084 

1513–0087 

7.66 ....................................... 1513–0085 

7.67 ....................................... 1513–0085 

7.81 ....................................... 1513–0087 

7.82 ....................................... 1513–0121 

7.83 ....................................... 1513–0121 

7.84 ....................................... 1513–0087 

7.233 ..................................... 1513–0087 

Signed: January 7, 2022. 

Mary G. Ryan, 

Administrator. 

Approved: January 7, 2022. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2022–00841 Filed 2–8–22; 8:45 am] 

BILLING CODE 4810–31–P 


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