[Federal Register Volume 70, Number 163 (Wednesday, August 24, 2005)]
[Proposed Rules]
[Pages 49516-49518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-16771]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 4, 24 and 27

[Notice No. 51]
RIN 1513-AB00


Certification Requirements for Imported Natural Wine (2005R-002P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking; cross-reference to temporary 
rule.

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SUMMARY: Elsewhere in this issue of the Federal Register, the Alcohol 
and Tobacco Tax and Trade Bureau is issuing a temporary rule 
implementing the new certification requirements regarding production 
practices and procedures for imported natural wine contained in section 
2002 of the Miscellaneous Trade and Technical Corrections Act of 2004, 
which amended section 5382 of the Internal Revenue Code of 1986. In 
this notice of proposed rulemaking, we are soliciting comments from all 
interested parties on the implementation of these new certification 
requirements. The text of the regulations in the temporary rule 
published in the Rules and Regulations section of this issue of the 
Federal Register serves as the text of the proposed regulations.

DATES: Comments must be received on or before October 24, 2005.

ADDRESSES: You may send comments to any of the following addresses--
    <bullet> Chief, Regulations and Procedures Division, Alcohol and 
Tobacco Tax and Trade Bureau, Attn: Notice No. 51, P.O. Box 14412, 
Washington, DC 20044-4412.
    <bullet> 202-927-8525 (facsimile).
    <bullet> <a href="/cdn-cgi/l/email-protection#deb0aeacb39eaaaabcf0b9b1a8"><span class="__cf_email__" data-cfemail="a4cad4d6c9e4d0d0c68ac3cbd2">[email protected]</span></a> (e-mail).
    <bullet> http://www.ttb.gov/alcohol/rules/index.htm. An online 
comment form is posted with this notice on our Web site.
    <bullet> http://www.regulations.gov. Federal e-rulemaking portal; 
follow instructions for submitting comments.
    You may view copies of any comments we receive about this notice by 
appointment at the TTB Library, 1310 G Street, NW., Washington, DC 
20220. To make an appointment, call 202-927-2400. You may also access 
copies of this notice and any comments online at http://www.ttb.gov/alcohol/rules/index.htm.
    See the Public Participation section of this document for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.

FOR FURTHER INFORMATION CONTACT: Gail Davis, International Trade 
Division, Alcohol and Tobacco Tax and Trade Bureau (202-927-8110).

SUPPLEMENTARY INFORMATION:

Background

    In the Rules and Regulations section of this issue of the Federal 
Register, we publish a temporary rule setting forth regulations to 
implement section 2002 of the Miscellaneous Trade and Technical 
Corrections Act of 2004, Pub. L. 108-429, 118 Stat. 2434 (``the Act''), 
signed by President Bush on December 3, 2004. Section 2002 of the Act 
revised section 5382(a) of the Internal Revenue Code of 1986 (IRC), 26 
U.S.C. 5382(a), which sets forth standards regarding what constitutes 
proper cellar treatment of natural wine. The revision of section 
5382(a) took effect on January 1, 2005, and includes new certification 
requirements for imported natural wine produced after December 31, 
2004. The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible 
for the administration of the IRC provisions relating to wine.
    The temporary regulations published elsewhere in this issue of the 
Federal Register involve amendments to parts 4, 24, and 27 of the TTB 
regulations (27 CFR parts 4, 24, and 27). The text of the temporary 
regulations serves as the text of these proposed regulations. The 
preamble to the temporary regulations explains the proposed 
regulations.

Public Participation

Comments Sought

    We request comments from everyone interested. We are particularly 
interested in comments on the effect these regulatory requirements 
might have on U.S. importers who do not obtain their wine directly from 
foreign producers, and we would welcome any suggestions for alternative 
approaches that would be consistent with the restrictions on disclosing 
taxpayer and return information in 26 U.S.C. 6103. We are particularly 
interested in comments on the effect these regulatory requirements 
might have on U.S. importers who do not obtain their wine directly from 
foreign producers. All comments must reference Notice No. 51 and must 
include your name and mailing address. They must be legible and written 
in language acceptable for public disclosure. Although we do not 
acknowledge receipt, we will consider your comments if we receive them 
on or before the closing date. We regard all comments as originals.

Confidentiality

    All comments are part of the public record and subject to 
disclosure. Do not enclose any material in your comments that you 
consider confidential or inappropriate for public disclosure.

Submitting Comments

    You may submit comments in any of five ways:
    <bullet> Mail: You may send written comments to TTB at the address 
listed in the ADDRESSES section of this document.
    <bullet> Facsimile: You may submit comments by facsimile 
transmission to 202-927-8525. Faxed comments must--
    (1) Be on 8.5- by 11-inch paper;
    (2) Contain a legible, written signature; and
    (3) Be no more than five pages long. This limitation ensures 
electronic access to our equipment. We will not accept faxed comments 
that exceed five pages.
    <bullet> E-mail: You may e-mail comments to <a href="/cdn-cgi/l/email-protection#1a746a68775a6e6e78347d756c"><span class="__cf_email__" data-cfemail="0967797b64497d7d6b276e667f">[email protected]</span></a>. Comments 
transmitted by electronic mail must--
    (1) Contain your e-mail address;
    (2) Reference Notice No. 51 on the subject line; and
    (3) Be legible when printed on 8.5- by 11-inch paper.
    <bullet> Online form: We provide a comment form with the online 
copy of this document on our Web site at http://www.ttb.gov/alcohol/rules/index.htm. Select the ``Send comments via email'' link under 
Notice No. 51.
    <bullet> Federal e-Rulemaking Portal: To submit comments to us via 
the Federal e-rulemaking portal, visit http://www.regulations.gov and 
follow the instructions for submitting comments.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine, in light of all circumstances, whether to hold a public 
hearing.

[[Page 49517]]

Public Disclosure

    You may view copies of the temporary rule, this document, and any 
comments we receive by appointment at the TTB Library at 1310 G Street, 
NW., Washington, DC 20220. You may also obtain copies at 20 cents per 
8.5- x 11-inch page. Contact our librarian at the above address or 
telephone 202-927-2400 to schedule an appointment or to request copies 
of comments.
    For your convenience, we will post the temporary rule, this 
document, and any comments we receive on the TTB Web site. We may omit 
voluminous attachments or material that we consider unsuitable for 
posting. In all cases, the full comment will be available in the TTB 
Library. To access the online copy of this document and the submitted 
comments, visit http://www.ttb.gov/alcohol/rules/index.htm. Select the 
``View Comments'' link under this document's number and title to view 
the posted comments.

Paperwork Reduction Act

    The collections of information contained in the temporary rule were 
submitted to the Office of Management and Budget (OMB) for review in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507). 
Pending the review of public comments, OMB has approved the information 
collections under control number 1513-0119. An agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information unless the collection of information displays a valid 
control number.
    The collections of information in this regulation are in Sec.  4.45 
and Sec.  27.140. The first information collection involves consumer 
information under the Federal Alcohol Administration Act. The second 
information collection is required by the Internal Revenue Code of 1986 
in connection with the importation of wine from foreign countries. 
Failure to provide the required information may result in 
administrative sanctions against the importer. The likely respondents 
are individuals and business or other for-profit institutions, 
including partnership, associations, and corporations.
    <bullet> Estimated total annual reporting and/or recordkeeping 
burden: 6,600 hours.
    <bullet> Estimated average annual burden per respondent/
recordkeeper: 1.65 hours.
    <bullet> Estimated number of respondents and/or recordkeeping: 
4,000.
    <bullet> Estimated annual number of responses: 20,000.
    Comments on the collection of information may be sent by e-mail to 
OMB at <a href="/cdn-cgi/l/email-protection#76371a130e1718121304292258293e03180236191b145813190658111900"><span class="__cf_email__" data-cfemail="2d6c4148554c4349485f72790372655843596d42404f0348425d034a425b">[email protected]</span></a>, or by paper mail to Office of 
Management and Budget, Attention: Desk Officer for the Department of 
the Treasury, Office of Information and Regulatory Affairs, Washington, 
DC 20503. A copy should also be sent to TTB by any of the methods 
previously described. Comments should be submitted within the time 
frame that comments are due regarding the substance of the regulation.
    Comments are invited on: (a) Whether the collections of information 
are necessary for the proper performance of the functions of the 
agency, including whether the information shall have practical utility; 
(b) the accuracy of the agency's estimate of the information collection 
burden; (c) ways to enhance the quality, utility, and clarity of the 
information to be collected; (d) ways to minimize the information 
collection burden on respondents, including through the use of 
automated collection techniques or other forms of information 
technology; and (e) estimate of capital or start up costs and costs of 
operations, maintenance, and purchase of services to provide 
information.

Regulatory Flexibility Act

    Pursuant to the requirements of the Regulatory Flexibility Act (5 
U.S.C. chapter 6), we certify that this notice of proposed rulemaking 
will not have a significant economic impact on a substantial number of 
small entities. The only new regulatory requirements involve reporting 
and recordkeeping and, as described above, the burdens associated with 
theses requirements are expected to be minimal. Accordingly, a 
regulatory flexibility analysis is not required. Pursuant to section 
7805(f) of the Internal Revenue Code, we will submit this notice of 
proposed rulemaking to the Chief Counsel for Advocacy of the Small 
Business Administration for comment on its impact on small businesses.

Executive Order 12866

    We have determined that this notice of proposed rulemaking is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required.

Drafting Information

    The principal author of this document was Jennifer K. Berry, 
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade 
Bureau. However, other personnel participated in its development.

List of Subjects

27 CFR Part 4

    Advertising, Customs duties and inspection, Imports, Labeling, 
Packaging and containers, Reporting and recordkeeping requirements, 
Trade practices, Wine.

27 CFR Part 24

    Administrative practice and procedure, Claims, Electronic fund 
transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavoring, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 27

    Alcohol and alcoholic beverages, Beer, Customs duties and 
inspection, Electronic funds transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Wine.

Proposed Amendments to the Regulations

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR parts 4, 24, and 27 as follows:

PART 4--LABELING AND ADVERTISING OF WINE

    1. The authority citation for part 4 continues to reads as follows:

    Authority: 27 U.S.C. 205, unless otherwise noted.

    2. Section 4.45 is amended by revising the section heading, 
designating the existing text as paragraph (a), adding a heading to 
newly designated paragraph (a), and adding a new paragraph (b) to read 
as follows:


Sec.  4.45  Certificates of origin, identity and proper cellar 
treatment.

* * * * *
    [The text of proposed Sec.  4.45 is the same as the text of Sec.  
4.45 as set forth in the temporary rule published elsewhere in this 
issue of the Federal Register.]

PART 24--WINE

    3. The authority citation for part 24 continues to read as follows:

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5173, 
5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-
5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 
6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7011, 7302, 7342, 
7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306.


[[Page 49518]]


    4. Section 24.301 is amended by removing the word ``and'' at the 
end of paragraph (i), removing the period at the end of paragraph (j) 
and adding, in its place, a semicolon followed by the word ``and'', and 
adding a new paragraph (k) to read as follows:


Sec.  24.301  Bulk still wine record.

* * * * *
    [The text of proposed Sec.  24.301 is the same as the text of Sec.  
24.301 as set forth in the temporary rule published elsewhere in this 
issue of the Federal Register.]
    5. Section 24.302 is amended by removing the word ``and'' at the 
end of paragraph (h), removing the period at the end of paragraph (i) 
and adding, in its place, a semicolon followed by the word ``and'', and 
adding a new paragraph (j) to read as follows:


Sec.  24.302  Effervescent wine record.

* * * * *
    [The text of proposed Sec.  24.302 is the same as the text of Sec.  
24.302 as set forth in the temporary rule published elsewhere in this 
issue of the Federal Register.]

PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER

    6. The authority citation for part 27 is revised to read as 
follows:

    Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 
5007, 5008, 5010, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 
5122, 5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5382, 5555, 
6302, 7805.

    7. Subpart I, Importer's Records and Reports, is amended by adding 
a new Sec.  27.140 to read as follows:


Sec.  27.140  Certification requirements for wine.

* * * * *
    [The text of proposed Sec.  27.140 is the same as the text of Sec.  
27.104 as set forth in the temporary rule published elsewhere in this 
issue of the Federal Register.]

    Signed: August 4, 2005.
John J. Manfreda,
Administrator.
    Approved: August 4, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 05-16771 Filed 8-23-05; 8:45 am]
BILLING CODE 4810-31-P


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