This morning the beverage alcohol industry sent a joint industry letter to the House and Senate requesting a funding increase for the Alcohol and Tobacco Tax and Trade Bureau (TTB) for FY2016. The letter was signed by twelve leading associations representing wine, beer, and spirits producers and wholesalers.

Last month, the President’s administration has requested $101 million for all TTB operations. Full funding is vital to the TTB and the industries the agency regulates. The letter asks that the Administration’s request be viewed as a minimum starting point for TTB funding and that TTB’s direct appropriation be increased above the Administration’s request by $5 million in a direct appropriation line item for enforcement of the Federal Alcohol Administration (FAA) Act.

The letters were signed by:

WineAmerica
American Beverage Licensees
American Distilling Institute
Brewers Association
Beer Institute
Distilled Spirits Council of the United States
National Association of Beverage Importers
National Beer Wholesalers Association
The Presidents’ Forum of the Distilled Spirits Industry
Wine Institute
Wine & Spirits Wholesalers of America
Washington Wine Institute

Washington, D.C.—An unusual proposal from the Tax & Trade Bureau (TTB) would allow wines to be labeled with the grapes’ AVA of origin, if “fully finished” in an adjacent state. TTB notice 147 was, the bureau stated, “in response to comments TTB received during the comment period for notice No. 142, Proposed Establishment of The Rocks District of Milton-Freewater District Viticultural Area, which is located near the Oregon-Washington state line in northeastern Oregon.” The proposal has engendered some confusion among wine industry organizations nationwide, although none has yet contributed to the dialogue on the bureau’s website. Michael Kaiser, director of public affairs at WineAmerica, sent his summary of the proposal to Wines & Vines.

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The TTB has issued new guidance on excise tax and operations report filing for wineries.

The TTB will now allow certain wineries to file their excise tax returns annually, rather than semi-monthly or quarterly. The requirements are: The proprietor has not given a bond for deferred payment of wine excise tax, and the proprietor:

• Paid wine excise taxes in an amount less than $1,000 during the previous calendar year.

• Is the proprietor of a newly established bonded wine premises and expects to pay less than $1,000 in wine excise taxes before the end of the calendar year.

“Not given bond for deferred payment” means you do not have an amount listed in the “deferral” space on the bond. The wine bond conditions allow up to $1,000 of the operations coverage on a wine bond of $2,000 or more to be used for deferral, so for an annual filer no additional deferral coverage would be needed. A bond of at least $1,000 and up to $1,999.99 provides $500 in automatic deferral coverage. If you show a deferral amount on the bond or would owe over $1,000 for the year, you do not qualify for annual filing.

Wineries that meet this requirement may file within 30 days of the end of the calendar year.

Proprietors of bonded wine premises operations must file the Report of Wine Premises Operations either monthly, quarterly, or annually. To qualify to file annually, a proprietor must:

• File an Excise Tax Return annually.

• Not expect the total of all bulk and bottled wine to exceed 20,000 gallons for any one month during the calendar year.

If you are not eligible to file an annual Excise Tax Return it means you are not eligible to file an annual Report of Wine Premises Operations. You also need to make sure you do not have more than 20,000 gallons of wine in any month. If you are eligible to file an annual Report of Wine Premises Operations, it is due January 15th of the year following the report year.

Questions? Contact Michael Kaiser at mkaiser@nullwineamerica.org or 202-223-5172.

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WineAmerica membership offers you direct access to policy makers here in Washington D.C. and a shared grassroots platform with wine industry peers across the country. No matter how many acres of grapes you grow or cases of wine you make, all American wineries share common concerns. As the only national grassroots voice in Washington, D.C. WineAmerica is constantly working to protect and promote the prosperity of America’s diverse wine industry.

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The TTB has issued a new Notice of Proposed Rulemaking that would change how American Viticultural Areas (AVA) can be used on a wine label.

The TTB is proposing that wineries in adjacent states be allowed to use the single-state AVA from the bordering state. To use the “Finger Lakes” as an example, a Pennsylvania winery would be able to purchase grapes from the Finger Lakes AVA and use the Finger Lakes AVA on the label, if the wine is fully finished in Pennsylvania. The regulations currently state that a Pennsylvania winery can purchase Finger Lakes grapes and use a “New York” state appellation of origin.

The current rules for AVA use on domestic wine label are:

1. The labeled area is an American viticultural area approved under U.S. regulations
2. Not less than 85% of the volume of the wine is derived from grapes grown in the labeled viticultural area
3. The wine is fully finished (except for cellar treatment and/or blending which does not alter the class and type of the wine) in the state or one of the states where the viticultural area is located

To use the example “Finger Lakes” AVA again, it is currently allowed on a wine label if 85% of the grapes are grown in the Finger Lakes and if it is a New York winery, however the winery does not need to be located within the AVA, it simply needs to be within the state the AVA is located in.

Currently, in the case of a multi-state appellation, like the Columbia Valley, the winery producing the wine must be located within one of the states located in the AVA. So an Oregon winery located in the Columbia Valley can use grapes from a Washington vineyard in the Columbia Valley and use the Columbia Valley AVA on the label. The new proposed rulemaking does not change this.

The TTB would like to hear from the public on this proposal and is accepting public comments until April 10. To submit comments and to read the full Notice of Proposed Rulemaking, please go here: Use of American Viticultural Area Names as Appellations of Origin on Wine Labels

Questions? Contact Michael Kaiser at mkaiser@nullwineamerica.org or 202-223-5172.

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The TTB does not mandate the use of GMOs on alcoholic beverages. There is no federal GMO labeling requirement currently. Until such time, disclosure is voluntary. The TTB is currently doing an internal review on the existing standards for disclosing any GMOs used in the winemaking process. As of now, with the lack of a federal labeling requirement, it remains to be seen what TTB will do, if anything.

How do I know what is required to ship wine into a particular state?

Currently, 43 states allow some form of direct shipment to varying degrees. Each state has a different requirement. It is easy to become confused by all of the different laws and regulations in each state, but virtually all states that allow shipping have a permitting requirement. No shipping should be down without the proper permitting. Visit ShipCompliant’s state-by-state listing here for a better understanding of what is required.

Are you a WineAmerica member? Email us your questions! mkaiser@nullwineamerica.org

Join Today!

WineAmerica membership offers you direct access to policy makers here in Washington D.C. and a shared grassroots platform with wine industry peers across the country. No matter how many acres of grapes you grow or cases of wine you make, all American wineries share common concerns. As the only national grassroots voice in Washington, D.C. WineAmerica is constantly working to protect and promote the prosperity of America’s diverse wine industry.

Of particular significance to wineries is the new revisions allowed for the disclosure of sulfites.  According to the Industry Circular issued today wineries may now, ” change an approved sulfite statement to any of these options: “Change an approved sulfite statement to any of these options: “Contains Sulfites,” “Contains (a) Sulfiting Agent(s),” “Contains [name of specific sulfating agent],”“Contains Naturally Occurring and Added Sulfites,” or “Contains Naturally Occurring Sulfites.” Additionally, “sulphites” may be used in lieu of “sulfites”.

A sulfite statement is required when sulfur dioxide or a sulfiting agent is detected at a level of 10 or more parts per million, measured as total sulfur dioxide. The statement used must accurately reflect all of the sulfur dioxide or sulfiting agent(s) present in the alcohol beverage. For wine:  Any other variation of the statement or removal of the statement requires a lab analysis. For sulfite waivers, the proprietor must have proof of sample analysis from a TTB-certified laboratory or from the TTB Compliance Laboratory.

For more information please refer to the Industry Circular: http://www.ttb.gov/industry_circulars/archives/2014/14-02.html

Are you a WineAmerica member? Email us your questions! mkaiser@nullwineamerica.org

Join Today!

WineAmerica membership offers you direct access to policy makers here in Washington D.C. and a shared grassroots platform with wine industry peers across the country. No matter how many acres of grapes you grow or cases of wine you make, all American wineries share common concerns. As the only national grassroots voice in Washington, D.C. WineAmerica is constantly working to protect and promote the prosperity of America’s diverse wine industry.

(WASHINGTON, D.C.) – A diverse coalition of organizations representing all three tiers of the U.S. beverage alcohol industry is urging Congress to fully fund the Obama Administration’s $101 million request for the Alcohol and Tobacco Tax and Trade Bureau (TTB).

In a letter sent to appropriations committee chairmen in the House of Representatives and U.S. Senate, the coalition praised the successful working relationship between the beverage alcohol industry and its primary federal regulator.

In addition, the industry groups also pointed out that TTB is the federal government’s third-biggest revenue generating agency behind the Internal Revenue Service and Customs and Border Protection. It also noted that TTB officials review well over 100,000 labels and thousands of product formulas each year, as well as completing all license review and background checks.

“[TTB’s] ability to respond swiftly and properly to changes in the alcohol industry has a direct impact on jobs, consumer protection, the innovation of new products, and the collection of federal excise taxes,” the letter said. It noted that TTB’s workforce had been cut by more than 50 full-time staff members at a time when the number of companies and products in the sector has increased by more than 53 percent.

“We need a well-funded TTB to be able to process label requests quickly in order to get new products to market in this highly competitive global marketplace. We also need a well-funded TTB to prevent and guard against unscrupulous actors from entering our marketplace who otherwise could harm the public with dangerous products, which has occurred outside of the United States with counterfeit alcohol,” the letter stated.

“The signatories of this letter to Members of Congress represent all three tiers of the beverage alcohol industry in the United States: suppliers (spirits, wine and beer), distributors and retailers. This is a testament to how critically important it is that our federal regulator, the Alcohol and Tobacco Tax and Trade Bureau, be appropriately funded in order to conduct timely, regulatory functions for our industry,” said Vicky McDowell, President/CEO of The Presidents’ Forum of the Distilled Spirits Industry.

“The TTB is vital to the success of the dynamic beer industry,” said Jim McGreevy, President and CEO of the Beer Institute. “The agency has a proven history of maintaining balanced regulations that support the needs of both consumers and brewers. This is not the time to question the budget of an agency that is integral to job creation and expansion for brewers and beer importers.”

“The TTB is the most efficient tax-collection agency in the federal government, and it also provides a useful role in keeping consumers safe. So it’s simply a smart investment for Congress to fully fund the TTB,” said Craig Purser National Beer Wholesalers Association President & CEO.

“The TTB has built a long record of protecting consumer safety, providing appropriate oversight and industry support. It is essential to the beverage industry and our employees that this agency expands to meet the growing and changing needs of today’s modern beverage alcohol industry,” said Wine & Spirits Wholesalers of America (WSWA) President and CEO Craig Wolf.

The letter was sent to House Appropriations Committee Chairman Hal Rogers (R-Ky.) and Ranking Member Nita Lowey (D-N.Y.) as well as Senate Appropriations Committee Chairwoman Barbara Mikulski (R-Md.) and Ranking Member Richard Shelby (R-Ala.). A copy of the letter is available here.

Organizations that signed the letter include: American Beverage Licensees, The Beer Institute, Brewers Association, Distilled Spirits Council of the United States, National Association of Beverage Importers, Inc., National Beer Wholesalers Association, The Presidents’ Forum of the Distilled Spirits Industry, WineAmerica, Wine Institute, and the Wine & Spirits Wholesalers of America.

Are you a WineAmerica member? Email us your questions! mkaiser@nullwineamerica.org

Join Today!

WineAmerica membership offers you direct access to policy makers here in Washington D.C. and a shared grassroots platform with wine industry peers across the country. No matter how many acres of grapes you grow or cases of wine you make, all American wineries share common concerns. As the only national grassroots voice in Washington, D.C. WineAmerica is constantly working to protect and promote the prosperity of America’s diverse wine industry.