New Requirements for Wine and Other Alcohol Importers and Wholesalers

I was doing some research on a wine region I particularly like called Rias Baixas which derives from both Spanish and Portuguese wine regions.

While red wine had traditionally been my preferred type of wine, the juicy white wines from this region have become my all time favorite. In so doing this research, I came across the following new regulation.

A new requirement for wine and other alcohol importers and wholesalers went into effect last month regarding the inclusion of certain corporate records when submitting an application to the government to operate as one of these entities.

Irrespective of the type of legal entity formed, i.e., corporation, partnership, etc., the submission of the following records is now mandatory:

1. Source of Funds Documentation
2. Trade Name Registration (if required by State or local government)

Also obligatory is the submission of additional organizational records, the requirements for which, vary depending on the entity’s type as follows:

Corporations:

* Articles of Incorporation and Certificate of Incorporation/Formation
* By-Laws
* Certificate to Operate in a Foreign State (if organized in a different state)

Partnerships:

* Partnership Agreement

Limited Liability Corporations (LLCs)

* Operating Agreement
* Articles of Incorporation and Certificate of Incorporation/Formation

While these rules went into effect on February 14, 2011, the federal agency, the Alcohol and Tobacco Tax and Trade Bureau (TTB) who enforces these rules, has granted a grace period through April 15, 2011 in order to allow businesses an opportunity to adapt to the new requirements.

For those who have submitted applications without the above documentation, TTB will grant the submission of such records through April 15, 2011. After this time, applications without these documents will be considered "incomplete."

To give a little background on TTB, it is the federal agency responsible for the labeling, advertising, and marketing of alcoholic beverages. TTB is also mandated to enforce the laws and write the regulations on the collection of alcohol, tobacco, firearms and ammunition excise taxes.

For more information on TTB regulatory compliance specific to wine click here and for those specific to importing or exporting wine click here.

For some nice images and to learn more about visiting this area, click here. (This is not an endorsement, though it is a nice website!) - Have I mentioned the Iberian peninsula is my favorite part of the world to spend time in?

Questions/comments? Post below or email me at clark.deanna@gmail.com

Where Does This Glass of Wine Come From?

TTB proposes to change the rules on multi-state appellations and is seeking your comments!

As a native of northern California, it’s no wonder I am relatively well versed in wines from Napa Valley and Sonoma Valley (my favorite!). In particular, I seriously enjoy visiting the Buena Vista Carneros winery and am always happy to have a “taste of home” by way of a glass of their wine here in NYC.

There is a new discussion around the labeling of imported wine and its regional origin designation or “appellation of origin.”

The recent labeling discussion arises from a quasi-governmental authority from Australia that regulates the exportation of Australian wine. Known as the Australian Wine and Brandy Corporation (AWBC), it petitioned the US agency, the “Alcohol and Tobacco Tax and Trade Bureau” (TTB), which oversees wine regulations (both domestic and foreign imported wine), to permit the labeling of Australian wines with multi-state, i.e., regional, appellations.

As a result of this petition, TTB is proposing to require that all imported wine display on its label the percentage of the wine derived from fruit or other agricultural product(s) grown in each particular political subdivision.

The reason for this amendment would be to provide wine consumers with quality information about the identity and quality of the wine. In addition, TTB is also proposing to mandate that imported wine labeled with a multi-state appellation conforms to the requirements of the foreign laws and regulations governing the composition, method of production, and designation of wines available for consumption within the country of origin.

TTB is seeking comments from interested parties regarding the utility of these amendments to the consumer and to determine whether the amendments will result in comparable treatment between domestic and foreign imported wines. TTB further seeks comments regarding subdivisions of foreign political systems that might be considered equivalents of U.S. states.

Written comments can be submitted until on or before Jan. 3, 2011 and can be sent to:

•[Online] http://www.regulations.gov (via the online comment form for this notice as posted within Docket No. TTB–2010–0007 at ‘‘Regulations.gov,’’ the Federal erulemaking portal);

•[By Regular Mail] Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044–4412; or

• [By hand delivery/courier in lieu of mail] Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street, NW., Suite 200–E, Washington, DC 20005.

TTB regulations regarding labeling and advertising of wine can be found at 27 CFR Part 4.

For more information on the proposed amendments, see the Federal Register notice at 75 FR 67663

Questions/comments? Post below or email me at clark.deanna@gmail.com