Week of August 29, 2008
Greetings! Hope you have had a satisfying and cheerful week! This week's offerings include notice of an expansion of certain viticultural areas, Industry Circular on Alternating Proprietors at bonded wine premises, a list of updated forms, a refresher on direct shipping, and some frequently asked questions (and answers).
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). |
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NOTICE NO. 90 PROPOSES EXPANSIONS OF THE RUSSIAN RIVER VALLEY AND NORTHERN SONOMA VITICULTURAL AREAS
INDUSTRY CIRCULAR 2008-4, ALTERNATING PROPRIETORS AT BONDED WINE PREMISES
This industry circular reminds alternating proprietors of the regulatory requirements covering qualification and operation of alternating proprietors on winery premises, and we provide guidance regarding the standards TTB applies for the establishment and continuing operation of alternating winery proprietors.
WHAT'S NEW WITH FORMS
TTB continues to make minor revisions to its forms to better serve industry members and taxpayers. TTB has recently updated several bond forms and other frequently used forms. See the updates at the list below.
Last updated 8/27/08
TTB F 5130.9 Brewer's Report of Operations
TTB F 5130.22 Brewer's Bond
TTB F 5130.23 Brewer's Bond Continuation Certificate
TTB F 5110.34 - Notice of Change in Status of Plant
TTB F 5110.50 - Tax Deferral Bond - Distilled Spirit (Puerto Rico)
TTB F 5110.56 - Distilled Spirits Bond
TTB F 5110.74 - Application for An Alcohol Fuel Producer Permit
TTB F 5120.36 - Wine Bond
TTB F 5130.25 - Brewer's Collateral Bond
TTB F 5130.27 - Brewer's Collateral Bond Continuation Certificate
DIRECT SHIPPING
The Liquor Law Repeal and Enforcement Act, also referred to as the Webb-Kenyon Act, which the Alcohol and Tobacco Tax and Trade Bureau (TTB) administers, prohibits shipments of alcohol beverages from one State into another State in violation of any law of the receiving State. 27 U.S.C. § 122.
The Federal Alcohol Administration Act (FAA Act) at 27 U.S.C. § 203, requires a basic permit in order to engage in the business of importing distilled spirits, wine, or malt beverages for non-industrial use into the United States. Likewise, a basic permit is required to engage in the business of distilling, rectifying, blending, bottling, or warehousing and bottling distilled spirits, or producing or blending wine for non-industrial use. Finally, a basic permit is required for persons who engage in the business of purchasing for resale at wholesale distilled spirits, wine, or malt beverages for non-industrial use. Retailers are not required to obtain basic permits under the FAA Act. The FAA Act also provides that basic permits are conditioned upon, among other things, compliance with the 21st Amendment and Federal laws relating to its enforcement as well as all other Federal laws related to distilled spirits, wine, and malt beverages (see 27 U.S.C. § 204(d).) Thus, TTB could, in appropriate circumstances, take administrative action against a basic permit holder for violations of the Webb Kenyon Act.
In 2000, our predecessor agency, the Bureau of Alcohol, Tobacco and Firearms (ATF), issued ATF Ruling 2000-1 to announce its enforcement policy relating to violations of State law that result from shipments of alcohol made directly to consumers in one State from sellers located outside that State. This ruling remains in effect and reflects the policy of TTB today.
Also in 2000, Congress enacted the 21st Amendment Enforcement Act that provided the States with a specific tool to address interstate shipments and transportation of alcohol beverages in violation of State law. Thus, contemporaneous with our enforcement policy pronouncement, Congress indicated its support for States to act in this enforcement area because they likely are in a better position to interpret and defend their own laws.
In Granholm v. Heald, the U.S. Supreme Court (May 16, 2005 decision) declared unconstitutional State laws that prohibited direct shipment of wine to consumers within the State from out-of-state wineries but permitted direct shipment to those consumers from in-state wineries. This decision has led to the reexamination of laws in several States.
Many States are reviewing and amending their alcohol beverage rules in light of the decision, and litigation continues as suits have been brought by retailers and consumers in several States. As a result, the regulatory schemes in place in many States are in some degree of flux.
We want to remind industry members who engage in direct shipping that they are responsible for remaining in compliance with current State rules. Furthermore, industry members should remember that their Federal basic permits could be at risk if they fail to comply with State rules.
For up to date information on the rules in a given state, contact the appropriate State alcohol regulatory authority.
FREQUENTLY ASKED QUESTIONS
Welcome to some of our frequently asked questions.
We make every attempt to update the answers to these questions to reflect the latest changes in our regulations and other Federal requirements. To comment on this page or to suggest a question, please send your e-mail to TTB Webmaster or visit the Contact Us page for more information.
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