Alcohol & Tobacco Tax & Trade Bureau this morning moved to close a loophole in its labeling regulations.
The proposal, scheduled to be published in the Federal Register this morning would apply to any standard grape wine covered by a certificate of exemption from label approval. Those wines would not be allowed to be labeled with a varietal designation, a type designation of varietal significance, a vintage date or an appellation of origin.
The proposal is in response to concerns raised by some wine industry members about standard wines labeled with AVA names, but which don’t appear to meet the requirements for using an AVA name.
TTB said it had also received letters signed by members of the California, Washington, Oregon and New York Congressional delegations expressing similar concerns.
The Federal Alcohol Administration Act’s labeling requirements apply to any wine with 7% or more alcohol by volume. But bottlers are exempt from the label requirements if they show the wine won’t be sold, offered for sale or shipped or delivered in interstate or foreign commerce.
TTB noted that its rules require a wine labeled “Napa Valley” to have been fully finished in California. “Accordingly, a wine labeled with the appellation “Napa Valley” but also labeled with a statement that indicates the wine is produced outside of California, such as ‘Produced and bottled by ABC Winery, Anytown, Illinois,” wouldn’t be eligible for a certificate of label approval.
“However, if the wine will be sold only within the State of Illinois, and the bottler certifies that it will not introduce the bottled product into interstate commerce, then, in accordance with 27 U.S.C. 205(e), the wine is eligible for a certificate of exemption from label approval, which would exempt it from the provisions,” TTB said in its Federal Register filing.
It added the congressmen who contacted TTB were concerned that the use of AVA names on wines that are covered by certificates of exemptions and don’t comply with the AVA provisions “undermines the best interests of the consumer and the decades-old system of American viticultural areas, is contrary to the purposes of the FAA Act, and should not be permitted under the labeling regulations.”
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