TTB Newsletter Week of March 28, 2008

In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce.

Please send any questions and/or comments to Susan Stewart Evans, Executive Liaison for Industry Matters (susan.stewart-evans@ttb.gov) and/or Frosty Chapman, State Liaison (forrest.chapman@ttb.gov).

TTB Newsletter Archives

TTB TOBACCO NEWS

TTB Tobacco News speaks to State tobacco regulators and members of the tobacco industry, bringing the latest from TTB regarding tobacco as well as related State and national news. Look for a new edition online once every three weeks, or subscribe to receive the newsletter through TTB Updates, our subscription e-mail service. Consult TTB Tobacco News for fast and easy information on current issues within the tobacco industry. Remember to share your questions and content suggestions with our editors - you're probably not the only one wondering!

You can read TTB Tobacco News online, or you can choose to receive the latest edition each week via e-mail by subscribing to e-mail updates.

Please send any questions or comments about TTB Tobacco News to Frosty Chapman, State Liaison or Susan Stewart Evans, Executive Liaison for Industry Matters.

PLAN TO ATTEND TTB EXPO 2008

Plan to join us June 17 and 18 in Covington, Kentucky for our first Expo. Registration is free. For more information or to register, please go to http://www.ttb.gov/conference/register.html

ALCOHOL REDUCTION OF WINE

When a bonded winery proprietor wishes to reduce the ethyl alcohol content of wine, certain processes are authorized by wine regulation 27 CFR 24.248, Processes Authorized for the Treatment of Wine, Juice, and Distilling Materials. The approved processes include Reverse Osmosis and the Spinning Cone Column.

Although these processes are used to facilitate the creation of a wine product, they must be conducted on distilled spirits plant (DSP) premises. The wine may be transferred in bond to a DSP for processing and returned to the winery, or the winery proprietor may wish to have the process conducted at the winery facility.

If the alcohol reduction is to take place at the winery facility, the proprietor of the bonded winery must first qualify to alternate the use of bonded wine premises as a DSP. Once qualified to alternate the premises as both a winery and DSP, the alcohol reduction may be conducted on DSP bonded premises. When the process is completed, the space and equipment can revert to winery use.

For further information and the necessary applications, please contact either the Wine Unit or the Distilled Spirits Plant Unit of the National Revenue Center at (513) 684-3334, or their toll free number, 877-TTB-FAQS (1-877-882-3277).

PERSONAL IMPORTATION OF BEVERAGE ALCOHOL PRODUCTS

TTB regulates the importation of beverage alcohol products into the United States for commercial use. Under the Federal Alcohol Administration Act, any person engaged in the business of importing beverage alcohol products into the U.S. for commercial use must have an importer's basic permit and obtain a Certificate of Label Approval (COLA). Under the Internal Revenue Code of 1986, the importer must also pay internal revenue taxes and any applicable duties to U.S. Customs and Border Protection (CBP).

When a person imports beverage alcohol products into the U.S. on a one-time basis for personal use, the above requirements do not apply. In exceptional cases, individuals who import beverage alcohol products for personal use on a repetitive or continuous basis may be required to obtain an importer's basic permit and possess a COLA for these imported shipments. As a practical matter, it is usually at the discretion of the CBP District Director at the port of entry to make the decision of whether or not a particular importation is, in fact, for personal use only. In certain unusual circumstances, TTB may exercise joint jurisdiction with CBP in making this determination.

If CBP and/or TTB decide that imported alcohol is for personal use, an importer's basic permit is not required, nor is it necessary to obtain a COLA; however, all Federal, State, and local taxes must be paid. In addition, other State, local, or CBP requirements may apply. It should be noted that some States prohibit the direct shipment of beverage alcohol products to individuals. Anyone interested in importing alcohol for personal use should contact their State liquor control agency. A list of State Liquor Control Boards is available on our Web site.

If the beverage alcohol products are to be given away as personal gifts to friends, neighbors, or relatives, etc., or are to be similarly distributed, the Federal Government health warning label requirement is applicable. A gift of beverage alcohol products connected with the solicitation of orders for, or the sale of, such products constitutes commercial use and can only be conducted by a federally licensed Importer.

Finally, the determination whether or not a shipment is for personal or commercial use cannot be decided solely on the size of the shipment but must be determined on a case-by-case basis considering the circumstances surrounding the importation. However, the size of the shipment may give rise to a question resulting in the need for an investigation by CBP or TTB.

For information on CBP requirements, visit http://www.cbp.gov. Click on "Publications," then "Travel Publications," and open/save the file titled "Moving Household Goods to U.S." The document should contain various subsections with information on importing liquor and alcohol.

If you intend to bring back a substantial quantity of alcohol for your personal use, you should contact the port through which you will be entering the country, and make prior arrangements for entering the alcohol into the U.S. It may also be useful to contact the carrier you plan on using, as many have strict guidelines regarding the shipment of alcohol beverages.

You should also be aware that State laws might limit the amount of alcohol that may be brought into the State without a license. If you arrive in a State that has limitations on the amount of alcohol you may bring in without a license, that State law will be enforced by CBP, even though this may be more restrictive than Federal regulations. We recommend that you check with the State government before you go abroad about their limitations on quantities allowed for personal importation and additional State taxes that might apply.