Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 27017

§ 101.17 [Corrected]

3. On page 20493, in § 101.17(g)(2), in

the first column, in the third line,

‘‘(g)(7)’’ should read ‘‘(g)(6)’’.

Dated: May 7, 1998.

William K. Hubbard,

Associate Commissioner for Policy

Coordination.

[FR Doc. 98–12899 Filed 5–14–98; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Part 4

[Notice No. 861]

RIN 1512–AB70

Net Contents Statement on Wine

Labels (95R–054P)

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: Based on a petition it has

received, the Bureau of Alcohol,

Tobacco and Firearms (ATF) is

proposing to amend the regulations to

provide that the net contents statement

for wine in containers of less than 1 liter

may be expressed on the label in

centiliters (cl) as an alternative to

milliliters (ml). ATF believes that the

proposed regulations provide industry

members with greater flexibility in

labeling their wines, while ensuring the

consumer is adequately informed as to

the net contents of the product.

The proposed amendments are part of

the Administration’s efforts to reinvent

government by reducing regulatory

burdens and streamlining requirements.

DATES: Written comments must be

received on or before August 13, 1998.

ADDRESSES: Send written comments to:

Chief, Regulations Division; Bureau of

Alcohol, Tobacco and Firearms; P.O.

Box 50221; Washington, DC 20091–

0221; ATTN: Notice No. .

FOR FURTHER INFORMATION CONTACT:

James P. Ficaretta, Regulations Division,

Bureau of Alcohol, Tobacco and

Firearms, 650 Massachusetts Avenue,

NW., Washington, D.C. 20226 (202–

927–8230).

SUPPLEMENTARY INFORMATION:

Background

Section 105(e) of the Federal Alcohol

Administration Act (FAA Act), 27

U.S.C. 205(e), vests broad authority in

the Director of ATF, as the delegate of

the Secretary of the Treasury, to

prescribe regulations intended to

prevent deception of the consumer and

to provide the consumer with adequate

information as to, among other things,

the net contents of the product.

Regulations which implement the

provisions of section 105(e), as they

relate to wine, are set forth in title 27,

Code of Federal Regulations (CFR), part

4.

Section 4.32(b) provides, in part, that

a statement of net contents must appear

on the label of all containers of wine in

accordance with § 4.37. Section 4.37

provides that the net contents of wine

for which a metric standard of fill is

prescribed must be stated on the label

in the same manner and form as set

forth in the standard of fill. The

authorized metric standards of fill for

American and imported wine, for sale in

interstate commerce within the United

States, are set forth in § 4.73 as follows:

3 liters

1.5 liters

1 liter

750 milliliters

500 milliliters

375 milliliters

187 milliliters

100 milliliters

50 milliliters

As provided in § 4.37(a), the net

contents of wine for which no standard

of fill is prescribed, e.g., sake, must be

stated in liters and in decimal portions

of a liter for quantities larger than one

liter, and in milliliters for quantities of

less than one liter.

Pursuant to § 4.32(b)(2), if the net

contents of the wine is an authorized

standard of fill, e.g., 750 milliliters, the

net contents statement may appear on

any label affixed to the container. If the

net contents is a standard of fill other

than an authorized standard of fill, e.g.,

720 milliliters, the net contents

statement must appear on a label affixed

to the front of the container.

Since the regulations show ‘‘ml’’ as an

abbreviation for milliliter (§ 4.37(a)(2)),

that abbreviation may be used in lieu of

milliliter, where required. ATF’s policy

is that the word liter may be abbreviated

as ‘‘L’’ or ‘‘l’’ (under certain

circumstances), or it may appear in a

shortened form such as ‘‘Lt,’’ provided

such shortened form is not likely to

mislead or confuse the consumer.

Finally, § 4.37 provides that the net

contents need not be stated on the label

if it is legibly blown, etched,

sandblasted, marked by underglaze

coloring, or otherwise permanently

marked by any method approved by the

Director on the side, front, or back of the

container in an unobscured location.

Discussion

Metric standards of fill for wine were

first prescribed in Treasury Decision

(T.D.) ATF–12 (39 FR 45216, December

31, 1974; corrected at 40 FR 1240,

January 7, 1975), and became mandatory

on January 1, 1979. In order to avoid

confusion among consumers, the final

rule required metric net contents to be

expressed in liters and decimal portions

thereof for quantities larger than one

liter (e.g., 1.5 liters) and in milliliters for

quantities of less than one liter (e.g., 750

milliliters). ATF noted in the preamble

of the final rule that statements of net

contents in liters or milliliters would

standardize the manner by which metric

net contents are to be stated while also

reflecting the degree of accuracy

necessary to measure the content of

wine bottles. ATF’s decision to express

the net contents in milliliters for wine

in containers of less than one liter was

based, in part, on testimony presented at

the hearing which preceded T.D. ATF–

12. A representative testifying on behalf

of the American National Metric

Council made the following comments:

For everyday use the Metric Practice

Committee of the American National Metric

Council recommends milliliter—ml—as the

only submultiple of liter. . . . The important

thing is to avoid the confusion of an

excessive variety of submultiples, which may

cause errors in communication. These other

submultiples, which have been used in

various parts of the world, would be a

deciliter—dl, a centiliter—cl. For American

usage, however, we are recommending only

milliliter—ml.

Containers for wine may bear

statements of net contents in addition to

the required metric net contents

statement provided such optional

statements represent an equivalent

volume and are not in any way

misleading to the consumer. For

example, if the label on a wine

container shows the net contents in

accordance with § 4.73 as ‘‘750 ml,’’ an

additional statement such as ‘‘75 cl,’’

‘‘.75 L,’’ ‘‘25.4 fl. oz.,’’ etc., may appear

elsewhere on the container provided its

appearance is not in a manner which is

misleading to the consumer.

Petition

ATF recently received a petition, filed

by Banfi Vintners (Banfi) of Old

Brookville, New York, requesting an

amendment of the regulations

concerning the net contents statement

on labels of wine. Specifically, the

petitioner has asked that the regulations

be amended to provide that the net

contents for wine bottled in a 750

milliliter (750 ml) standard of fill be

expressed in centiliters, as ‘‘75 cl,’’ as an

alternative to ‘‘750 ml.’’ Banfi states that
27018 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

75 centiliters is a universally recognized

measurement equivalent to 750

milliliters in the metric system.

Furthermore, authorizing this

alternative net contents statement on

wine labels ‘‘would simplify current

regulations and allow for an easier flow

of wines among Europe, the world

markets and the United States.’’ In that

regard, the European Union (EU)

requires a statement of nominal volume

(net contents) on labels of wine sold in

EU countries. Pursuant to European

Council Directive, the nominal volume

must be stated in liters, centiliters or

milliliters. See Council Regulation (EEC)

No. 2392/89 of July 24, 1989 (Title I,

Chapter I, Section AI, Article 2(1)(b);

Title I, Chapter II, Section A, Article

25(1)(b)); Council Directive 75/106/EEC

of December 19, 1974.

Proposed Regulatory Amendments

For many years ATF has permitted

additional statements of net contents to

appear on wine labels along with the

required net contents statement,

provided such optional statements

represent an equivalent volume. In

reviewing numerous certificates of label

approval the Bureau finds that an

optional statement of net contents

frequently appears on labels of imported

wine. This is most likely due to the fact

that, as mentioned, under EU

regulations the net contents of wine may

be stated in milliliters, centiliters, or

liters. An optional statement usually

appears on labels of wine bottled in a

750 milliliter size container (a popular

size among consumers) and was often

expressed in centiliters, as ‘‘75 cl.’’ To

a much lesser extent, the optional

statement was expressed in decimal

portions of a liter, e.g., ‘‘0.75 L’’ (‘‘0,75

L’’).

Optional statements of net contents

expressed in centiliters also appeared

on labels of imported wine bottled in

other authorized standards of fill. For

example, on containers of wine bottled

in a 500 milliliter standard of fill the

required and optional net contents

statements appeared as ‘‘500 ml’’ and

‘‘50 cl,’’ respectively. In the case of wine

bottled in a 375 milliliter container (375

ml), the additional net contents

statement was expressed as ‘‘37.5 cl.’’

Thus, ATF believes that consumers are

accustomed to seeing the net contents of

wine expressed in centiliters.

The Bureau also observed that in

many instances the required and

optional net contents statements

appeared on the same side of the

container and, in some cases, in direct

conjunction with each other, e.g., ‘‘750

ml/75 cl,’’ ‘‘375 ml/37,5 cl,’’ etc. As

such, ATF believes that consumers

recognize that the required net contents

statement, expressed in milliliters, and

the optional net contents statement,

expressed in centiliters, represent an

equivalent amount in the metric system.

Accordingly, ATF is proposing to

amend the regulations to provide that

the net contents statement for wine in

containers of less than 1 liter shall be

expressed in either milliliters (ml) or

centiliters (cl), or both. The proposed

amendment applies to the net contents

of wine for which a standard of fill is

prescribed in § 4.73, i.e., 750 ml, 500 ml,

375 ml, etc., as well as to the net

contents of wine for which no standard

of fill is prescribed, e.g., 730 ml (73 cl).

ATF is soliciting comments on this

proposed amendment to the regulations.

ATF is also soliciting comments on the

following:

1. Whether the regulations should be

amended in accordance with the

petitioner’s specific request to allow the

net contents statement to be expressed

in centiliters only on wine bottled in a

750 milliliter standard of fill;

2. Whether the regulations should be

amended to authorize the net contents

statement for wine in containers of less

than 1 liter to be expressed in

milliliters, centiliters, or decimal

portions of liter. For example, in the

case of wine bottled in a 750 milliliter

standard of fill the net contents may be

stated on the label as ‘‘750 ml,’’ ‘‘75 cl,’’

or ‘‘.75 L.’’ ; or

3. Whether the regulations should be

amended to be consistent with EU

regulations, i.e., regardless of the

container size, the net contents of wine

shall be expressed in liters, milliliters,

or centiliters.

Executive Order 12866

It has been determined that this

proposed rule is not a significant

regulatory action by Executive Order

12866. Therefore, a regulatory

assessment is not required.

Regulatory Flexibility Act

It is hereby certified that this

proposed regulation will not have a

significant economic impact on a

substantial number of small entities.

The proposed rule is liberalizing in

nature in that wine producers will have

greater choices in labeling their

products. Accordingly, a regulatory

flexibility analysis is not required.

Paperwork Reduction Act

The provisions of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507)

and its implementing regulations, 5 CFR

Part 1320, do not apply to this notice of

proposed rulemaking because no new

requirement to collect information is

proposed. Section 4.37 (previously

approved under OMB control number

1512–0482) is being amended to allow

producers to state the net contents of

their products in centiliters as an

alternative to milliliters for wine in

containers of less than 1 liter. The

proposed amendments are liberalizing

in nature, are not substantive, and do

not impose any additional burden on

the industry.

Public Participation

ATF requests comments on the

proposed regulations from all interested

persons. Comments received on or

before the closing date will be carefully

considered. Comments received after

that date will be given the same

consideration if it is practical to do so,

but assurance of consideration cannot

be given except as to comments received

on or before the closing date.

ATF will not recognize any material

in comments as confidential. Comments

may be disclosed to the public. Any

material which the commenter

considers to be confidential or

inappropriate for disclosure to the

public should not be included in the

comment. The name of the person

submitting a comment is not exempt

from disclosure.

Any interested person who desires an

opportunity to comment orally at a

public hearing should submit his or her

request, in writing, to the Director

within the 90-day comment period. The

Director, however, reserves the right to

determine, in light of all circumstances,

whether a public hearing is necessary.

Disclosure

Copies of the petition, this notice, and

the written comments will be available

for public inspection during normal

business hours at: ATF Public Reading

Room, Room 6480, 650 Massachusetts

Avenue, NW., Washington, DC.

Drafting Information

The author of this document is James

P. Ficaretta, Regulations Division,

Bureau of Alcohol, Tobacco and

Firearms.

List of Subjects in 27 CFR Part 4

Advertising, Consumer protection,

Customs duties and inspection, Imports,

Labeling, Packaging and containers, and

Wine.

Authority and Issuance

Accordingly, ATF is proposing to

amend Part 4 in Title 27 of the Code of

Federal Regulations as follows:
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 27019

PART 4—LABELING AND

ADVERTISING OF WINE

Paragraph 1. The authority citation

for 27 CFR Part 4 continues to read as

follows:

Authority: 27 U.S.C. 205.

Paragraph 2. Section 4.37 is amended

by revising paragraphs (a)(2), (b)(1), and

(b)(2) to read as follows:

§ 4.37 Net contents.

(a) * * *

(2) If less than one liter, net contents

shall be stated in milliliters (ml) or

centiliters (cl), or both.

(b) * * *

(1) For the metric standards of fill: 3

liters (101 fl. oz.); 1.5 liters (50.7 fl. oz.);

1 liter (33.8 fl. oz.); 750 ml or 75 cl (25.4

fl. oz.); 500 ml or 50 cl (16.9 fl. oz.); 375

ml or 37.5 cl (12.7 fl. oz.); 187 ml or 18.7

cl (6.3 fl. oz.); 100 ml or 10 cl (3.4 fl.

oz.); and 50 ml or 5 cl (1.7 fl. oz.).

(2) Equivalent volumes of less than

100 fluid ounces shall be stated in fluid

ounces only, accurate to the nearest onetenth of a fluid ounce; for example, 700

ml or 70 cl (23.7 fl. oz.).

* * * * *

Paragraph 3. Section 4.38 is amended

by revising the first sentence in

paragraphs (b)(1) and (b)(2) to read as

follows:

§ 4.38 General requirements.

(a) * * *

(b) Size of type. (1) Containers of more

than 187 milliliters (18.7 centiliters).

* * *

(2) Containers of 187 milliliters (18.7

centiliters) or less. * * *

* * * * *

§ 4.71 [Amended]

Paragraph 4. Section 4.71(a)(3) is

amended by adding ‘‘(18.7 centiliters)’’

after ‘‘187 milliliters’’.

Paragraph 5. Section 4.73(a) is

revised to read as follows:

§ 4.73 Metric standards of fill.

(a) Authorized standards of fill. The

standards of fill for wine are the

following:

3 liters

1.5 liters

1 liter

750 milliliters (or

75 centiliters)

500 milliliters (or

50 centiliters)

375 milliliters (or 37.5 centiliters)

187 milliliters (or

18.7 centiliters)

100 milliliters (or 10

centiliters)

50 milliliters (or 5

centiliters)

* * * * *

Signed: March 17, 1998.

John W. Magaw,

Director.

Approved: April 20, 1998.

John P. Simpso,

Deputy Assistant Secretary (Regulatory, Tariff

and Trade Enforcement).

[FR Doc. 98–13017 Filed 5–14–98; 8:45 am]

BILLING CODE 4810–31–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 165

[CGD11–98–003]

RIN 2115–AA97

Security Zone; San Diego Bay

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Coast Guard proposes to

modify and expand the geographical

boundaries of the permanent security

zone codified at 33 CFR 165.1105 as

follows: on the waters along the

northern shoreline of Naval Air Station

North Island, the area enclosed by the

following points: Beginning at a point

located at 32°42′53.0′′ N, 117°11′45.0′′

W, thence running northerly to a point

located at 32°42′55.5′′ N, 117°11′45.0′′

W, thence running easterly to a point

located at 32°42′55.0′′ N, 117°11′30.5′′

W, thence running southeasterly to a

point located at 32°42′50.5′′ N,

117°11′26.0′′ W, thence running

northeasterly to a point located at

32°42′52.0′′ N, 117°11′24.5′′ W, thence

running southeasterly to a point located

at 32°42′43.5′′ N, 117°11′13.0′′ W,

thence running southerly to a point

located at 32°42′30.5′′ N, 117°11′18.0′′

W, thence running southeasterly to a

point located at 32°42′21.0′′ N,

117°10′48.0′′ W, thence running

southerly to a point located at

32°42′13.0′′ N, 117°10′51.0′′ W, thence

running generally northwesterly along

the shoreline of Naval Air Station North

Island to the place of beginning. The

perimeter of the security zone will

continue to be marked and patrolled by

United States Navy security patrol

boats.

There were previously only two

aircraft carriers homeported at Naval Air

Station North Island; however, a third

aircraft carrier has recently been

designated to homeport at Naval Air

Station North Island. The modification

and expansion of this security zone is

needed to accommodate the

homeporting of this third aircraft carrier

at Naval Air Station North Island. Entry

into, transit through, or anchoring

within this security zone is prohibited

unless authorized by the Captain of the

Port.

DATES: Comments must be received on

or before July 14, 1998.

ADDRESSES: Comments may be mailed to

LT Michael A. Arguelles, Coast Guard

Marine Safety Office, 2716 North Harbor

Drive, San Diego, CA, 92101–1064, (619)

683–6484. The comments and other

materials referenced in this notice will

be available for inspection and copying

at the above address. Normal office

hours are between 7 a.m. and 4 p.m.,

Monday through Friday, except federal

holidays. Comments may also be handdelivered to this address.

FOR FURTHER INFORMATION CONTACT:

Lieutenant Mike Arguelles, USCG, c/o

U.S. Coast Guard Captain of the Port,

2716 N. Harbor Drive, San Diego, CA

92101–1064, (619) 683–6484.

SUPPLEMENTARY INFORMATION:

Request for Comments

Interested persons are invited to

participate in this proposed rulemaking

by submitting written views, data, or

any other materials to the address listed

under ADDRESSES in this preamble.

Persons submitting comments should

include their names and addresses,

identify the docket number for this

rulemaking (CGD11–98–003), the

specific section of the proposal to which

their comments apply, and give reasons

for each comment. The Coast Guard

requests that all comments and

attachments be submitted in an

unbound format suitable for copying

and electronic filing. If not practical, a

second copy of any bound materials is

requested. Persons wanting

acknowledgment of receipt of comments

should enclose a stamped, selfaddressed postcard or envelope. The

Coast Guard will consider all comments

received during the comment period

and may change this proposal in view

of the comments.

No public hearing is planned, but one

may be held if written requests for a

hearing are received and it is

determined that the opportunity to

make oral presentations will aid in the

rulemaking process. Persons may

request a public hearing by writing to

the address listed above in ADDRESSES.

The request should include reasons why

a hearing would be beneficial. If it

determines that the opportunity for oral

presentations will aid this rulemaking,

the Coast Guard will hold a public

hearing at a time and place announced

by a later notice in the Federal Register.