26 U.S.C. § 5388 (INTERNAL REVENUE CODE)
§ 5388. Designation of wines
(a) Standard wines
Standard wines may be removed from premises subject to the provisions of this subchapter and be marked, transported, and sold under their proper designation as to kind and origin, or, if there is no such designation known to the trade or consumers, then under a truthful and adequate statement of composition.
(b) Other wines
Wines other than standard wines may be removed for consumption or sale and be marked, transported, or sold only under such designation as to kind and origin as adequately describes the true composition of such products and as adequately distinguish them from standard wines, as regulations prescribed by the Secretary shall provide.
(c) Use of semi-generic designations
(1) In general
Semi-generic designations may be used to designate wines of an origin other than that indicated by such name only if—
(A) there appears in direct conjunction therewith an appropriate appellation of origin disclosing the true place of origin of the wine, and
(B) the wine so designated conforms to the standard of identity, if any, for such wine contained in the regulations under this section or, if there is no such standard, to the trade understanding of such class or type.
(2) Determination of whether name is semi-­generic
(A) In general
Except as provided in subparagraph (B), a name of geographic significance, which is also the designation of a class or type of wine, shall be deemed to have become semi-generic only if so found by the Secretary.
(B) Certain names treated as semi-generic
The following names shall be treated as semi-generic: Angelica, Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, Tokay.
(3) Special rule for use of certain semi-generic designations
(A) In general
In the case of any wine to which this paragraph applies—
(i) paragraph (1) shall not apply,
(ii) in the case of wine of the European Community, designations referred to in subparagraph (C)(i) may be used for such wine only if the requirement of subparagraph (B)(ii) is met, and
(iii) in the case any other wine bearing a brand name, or brand name and fanciful name, semi-generic designations may be used for such wine only if the requirements of clauses (i), (ii), and (iii) of subparagraph (B) are met.
(B) Requirements
(i) The requirement of this clause is met if there appears in direct conjunction with the semi-generic designation an appropriate appellation of origin disclosing the origin of the wine.
(ii) The requirement of this clause is met if the wine conforms to the standard of identity, if any, for such wine contained in the regulations under this section or, if there is no such standard, to the trade understanding of such class or type.
(iii) The requirement of this clause is met if the person, or its successor in interest, using the semi-generic designation held a Certificate of Label Approval or Certificate of Exemption from Label Approval issued by the Secretary for a wine label bearing such brand name, or brand name and fanciful name, before March 10, 2006, on which such semi-generic designation appeared.
(C) Wines to which paragraph applies
(i) In general
Except as provided in clause (ii), this paragraph shall apply to any grape wine which is designated as Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Retsina, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, or Tokay.
(ii) Exception
This paragraph shall not apply to wine which—
(I) contains less than 7 percent or more than 24 percent alcohol by volume,
(II) is intended for sale outside the United States, or
(III) does not bear a brand name.
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1387; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title IX, § 910(a), Aug. 5, 1997, 111 Stat. 877; Pub. L. 109–432, div. A, title IV, § 422(a), Dec. 20, 2006, 120 Stat. 2972.)
heading: Prior Provisions
text: A prior section 5388, act Aug. 16, 1954, ch. 736, 68A Stat. 672, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.
heading: Amendments
text: 2006—Subsec. (c)(3). Pub. L. 109–432 added par. (3).
1997—Subsec. (c). Pub. L. 105–34 added subsec. (c).
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
heading: Effective Date of 2006 Amendment
text: Pub. L. 109–432, div. A, title IV, § 422(b), Dec. 20, 2006, 120 Stat. 2973, provided that: “The amendments made by this section [amending this section] shall apply to wine imported or bottled in the United States on or after the date of enactment of this Act [Dec. 20, 2006].”
heading: Effective Date of 1997 Amendment
text: Pub. L. 105–34, title IX, § 910(b), Aug. 5, 1997, 111 Stat. 877, provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Aug. 5, 1997].”