[Federal Register Volume 73, Number 28 (Monday, February 11, 2008)]
[Notices]
[Pages 7804-7805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2392]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

[TTB Ruling 2008-1]


Standards of Identity and the Use of Semi-generic Designations 
and Retsina on Certain European Wines Imported into the United States

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

ACTION: General notice.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau issues this 
ruling to clarify the standard of identity that applies to certain 
European wines when they are imported into the United States.

DATES: This ruling is effective on January 24, 2008.

FOR FURTHER INFORMATION CONTACT: Lynn Gittes, Program Manager, 
International Trade Division, Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street, NW., Washington, DC 20220; telephone 202-927-8104.

SUPPLEMENTARY INFORMATION: 

TTB Ruling 2008-1

Standards of Identity and the Use of Semi-generic Designations and 
Retsina on Certain European Wines Imported into the United States

27 CFR 4.21 Standards of Identity

    Wines using one of the 17 specified designations listed in Annex II 
of the Agreement Between the United States of America and the European 
Community on Trade in Wine, which originate in the applicable European 
Union member State and which comply with the European Union standard 
for such wines, will meet the United States standard of identity or the 
trade understanding for such wine.

TTB RUL. 2008-1

    The Alcohol and Tobacco Tax and Trade Bureau has been asked if the 
adoption of the Agreement Between the United States of America and the 
European Community on Trade in Wine (``the Agreement'') and the related 
statutory change regarding semi-generic designations and Retsina affect 
the standard of identity that applies to certain European wines when 
they are imported into the United States.

Background

    On March 10, 2006, the United States and the European Community 
(EC) signed the Agreement in which the United States agreed to seek to 
change the legal status of 17 designations listed in Annex II of the 
Agreement in order to restrict their use solely to wine originating in 
the applicable European Union (EU) member State, except as provided for 
under a ``grandfather'' provision. These 17 designations are: Burgundy, 
Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, 
Port, Retsina, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, and 
Tokay. The Agreement's ``grandfather'' provision allows persons or 
their successors in interest to continue to label non-EU wines with one 
of the 17 listed designations if that term is used only on labels for 
wine bearing the brand name, or the brand name and the fanciful name, 
if any, for which the applicable Certificate of Label Approval (COLA) 
or Certificate of Exemption from Label Approval was issued by the 
Secretary of the Treasury before March 10, 2006.
    Legislation changing the legal status of the 17 designations in the 
Agreement was enacted by Congress and signed by the President on 
December 20, 2006, as section 422 of the Tax Relief and Health Care Act 
of 2006 (``the Act''), Public

[[Page 7805]]

Law 109-432, 120 Stat. 2922, 2972. As amended by the Act, section 
5388(c) of the Internal Revenue Code of 1986 (26 U.S.C. 5388(c)) 
contains a provision regarding the use of the 17 designations listed in 
the Agreement. The provision states that, in the case of wine of the 
EC, the listed designations may be used only if the wine conforms to 
the standard of identity, if any, for such wine contained in the 
regulations issued under section 5388 (27 CFR 24.257 and, by reference, 
27 CFR 4.21) or, if there is no such standard, to the trade 
understanding of such class and type. All other wines bearing the 
listed designations are subject to two additional requirements: (1) 
That the wine be marked with an appropriate appellation of origin 
disclosing the origin of the wine, and (2) that the person, or the 
person's successor in interest, using a listed designation hold a COLA 
or Certificate of Exemption from Label Approval issued by the Secretary 
of the Treasury before March 10, 2006, for a wine label bearing that 
designation and that brand name or brand name and fanciful name.
    Held, that an EU wine product that bears one of the 17 designations 
listed in section 5388(c)(3)(C)(i) of the Internal Revenue Code of 1986 
and that conforms to the EU standard for such wine complies with the 
United States standard of identity or the trade understanding for such 
wine. The recent amendment to 26 U.S.C. 5388(c) concerning semi-generic 
designations does not require such EU wine products imported into the 
United States to meet a new standard of identity.

    Signed: January 24, 2008.
John J. Manfreda,
Administrator.
[FR Doc. E8-2392 Filed 2-8-08; 8:45 am]
BILLING CODE 4810-31-P