Net Contents Statement on Wine Labels (95R-054P)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 4

[Notice No. 861]

RIN 1512-AB70

Net Contents Statement on Wine Labels (95R-054P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of

the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Based on a petition it has received, the Bureau of Alcohol,

Tobacco and Firearms (ATF) is proposing to amend the regulations to

provide that the net contents statement for wine in containers of less

than 1 liter may be expressed on the label in centiliters (cl) as an

alternative to milliliters (ml). ATF believes that the proposed

regulations provide industry members with greater flexibility in

labeling their wines, while ensuring the consumer is adequately

informed as to the net contents of the product.

The proposed amendments are part of the Administration's efforts to

reinvent government by reducing regulatory burdens and streamlining

requirements.

DATES: Written comments must be received on or before August 13, 1998.

ADDRESSES: Send written comments to: Chief, Regulations Division;

Bureau of Alcohol, Tobacco and Firearms; P.O. Box 50221; Washington, DC

20091-0221; ATTN: Notice No. .

FOR FURTHER INFORMATION CONTACT: James P. Ficaretta, Regulations

Division, Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts

Avenue, NW., Washington, D.C. 20226 (202-927-8230).

SUPPLEMENTARY INFORMATION:

Background

Section 105(e) of the Federal Alcohol Administration Act (FAA Act),

27 U.S.C. 205(e), vests broad authority in the Director of ATF, as the

delegate of the Secretary of the Treasury, to prescribe regulations

intended to prevent deception of the consumer and to provide the

consumer with adequate information as to, among other things, the net

contents of the product. Regulations which implement the provisions of

section 105(e), as they relate to wine, are set forth in title 27, Code

of Federal Regulations (CFR), part 4.

Section 4.32(b) provides, in part, that a statement of net contents

must appear on the label of all containers of wine in accordance with

Sec. 4.37. Section 4.37 provides that the net contents of wine for

which a metric standard of fill is prescribed must be stated on the

label in the same manner and form as set forth in the standard of fill.

The authorized metric standards of fill for American and imported wine,

for sale in interstate commerce within the United States, are set forth

in Sec. 4.73 as follows:

3 liters

1.5 liters

1 liter

750 milliliters

500 milliliters

375 milliliters

187 milliliters

100 milliliters

50 milliliters

As provided in Sec. 4.37(a), the net contents of wine for which no

standard of fill is prescribed, e.g., sake, must be stated in liters

and in decimal portions of a liter for quantities larger than one

liter, and in milliliters for quantities of less than one liter.

Pursuant to Sec. 4.32(b)(2), if the net contents of the wine is an

authorized standard of fill, e.g., 750 milliliters, the net contents

statement may appear on any label affixed to the container. If the net

contents is a standard of fill other than an authorized standard of

fill, e.g., 720 milliliters, the net contents statement must appear on

a label affixed to the front of the container.

Since the regulations show ``ml'' as an abbreviation for milliliter

(Sec. 4.37(a)(2)), that abbreviation may be used in lieu of milliliter,

where required. ATF's policy is that the word liter may be abbreviated

as ``L'' or ``l'' (under certain circumstances), or it may appear in a

shortened form such as ``Lt,'' provided such shortened form is not

likely to mislead or confuse the consumer.

Finally, Sec. 4.37 provides that the net contents need not be

stated on the label if it is legibly blown, etched, sandblasted, marked

by underglaze coloring, or otherwise permanently marked by any method

approved by the Director on the side, front, or back of the container

in an unobscured location.

Discussion

Metric standards of fill for wine were first prescribed in Treasury

Decision (T.D.) ATF-12 (39 FR 45216, December 31, 1974; corrected at 40

FR 1240, January 7, 1975), and became mandatory on January 1, 1979. In

order to avoid confusion among consumers, the final rule required

metric net contents to be expressed in liters and decimal portions

thereof for quantities larger than one liter (e.g., 1.5 liters) and in

milliliters for quantities of less than one liter (e.g., 750

milliliters). ATF noted in the preamble of the final rule that

statements of net contents in liters or milliliters would standardize

the manner by which metric net contents are to be stated while also

reflecting the degree of accuracy necessary to measure the content of

wine bottles. ATF's decision to express the net contents in milliliters

for wine in containers of less than one liter was based, in part, on

testimony presented at the hearing which preceded T.D. ATF-12. A

representative testifying on behalf of the American National Metric

Council made the following comments:

For everyday use the Metric Practice Committee of the American

National Metric Council recommends milliliter--ml--as the only

submultiple of liter. . . . The important thing is to avoid the

confusion of an excessive variety of submultiples, which may cause

errors in communication. These other submultiples, which have been

used in various parts of the world, would be a deciliter--dl, a

centiliter--cl. For American usage, however, we are recommending

only milliliter--ml.

Containers for wine may bear statements of net contents in addition

to the required metric net contents statement provided such optional

statements represent an equivalent volume and are not in any way

misleading to the consumer. For example, if the label on a wine

container shows the net contents in accordance with Sec. 4.73 as ``750

ml,'' an additional statement such as ``75 cl,'' ``.75 L,'' ``25.4 fl.

oz.,'' etc., may appear elsewhere on the container provided its

appearance is not in a manner which is misleading to the consumer.

Petition

ATF recently received a petition, filed by Banfi Vintners (Banfi)

of Old Brookville, New York, requesting an amendment of the regulations

concerning the net contents statement on labels of wine. Specifically,

the petitioner has asked that the regulations be amended to provide

that the net contents for wine bottled in a 750 milliliter (750 ml)

standard of fill be expressed in centiliters, as ``75 cl,'' as an

alternative to ``750 ml.'' Banfi states that

[[Page 27018]]

75 centiliters is a universally recognized measurement equivalent to

750 milliliters in the metric system. Furthermore, authorizing this

alternative net contents statement on wine labels ``would simplify

current regulations and allow for an easier flow of wines among Europe,

the world markets and the United States.'' In that regard, the European

Union (EU) requires a statement of nominal volume (net contents) on

labels of wine sold in EU countries. Pursuant to European Council

Directive, the nominal volume must be stated in liters, centiliters or

milliliters. See Council Regulation (EEC) No. 2392/89 of July 24, 1989

(Title I, Chapter I, Section AI, Article 2(1)(b); Title I, Chapter II,

Section A, Article 25(1)(b)); Council Directive 75/106/EEC of December

19, 1974.

Proposed Regulatory Amendments

For many years ATF has permitted additional statements of net

contents to appear on wine labels along with the required net contents

statement, provided such optional statements represent an equivalent

volume. In reviewing numerous certificates of label approval the Bureau

finds that an optional statement of net contents frequently appears on

labels of imported wine. This is most likely due to the fact that, as

mentioned, under EU regulations the net contents of wine may be stated

in milliliters, centiliters, or liters. An optional statement usually

appears on labels of wine bottled in a 750 milliliter size container (a

popular size among consumers) and was often expressed in centiliters,

as ``75 cl.'' To a much lesser extent, the optional statement was

expressed in decimal portions of a liter, e.g., ``0.75 L'' (``0,75

L'').

Optional statements of net contents expressed in centiliters also

appeared on labels of imported wine bottled in other authorized

standards of fill. For example, on containers of wine bottled in a 500

milliliter standard of fill the required and optional net contents

statements appeared as ``500 ml'' and ``50 cl,'' respectively. In the

case of wine bottled in a 375 milliliter container (375 ml), the

additional net contents statement was expressed as ``37.5 cl.'' Thus,

ATF believes that consumers are accustomed to seeing the net contents

of wine expressed in centiliters.

The Bureau also observed that in many instances the required and

optional net contents statements appeared on the same side of the

container and, in some cases, in direct conjunction with each other,

e.g., ``750 ml/75 cl,'' ``375 ml/37,5 cl,'' etc. As such, ATF believes

that consumers recognize that the required net contents statement,

expressed in milliliters, and the optional net contents statement,

expressed in centiliters, represent an equivalent amount in the metric

system.

Accordingly, ATF is proposing to amend the regulations to provide

that the net contents statement for wine in containers of less than 1

liter shall be expressed in either milliliters (ml) or centiliters

(cl), or both. The proposed amendment applies to the net contents of

wine for which a standard of fill is prescribed in Sec. 4.73, i.e., 750

ml, 500 ml, 375 ml, etc., as well as to the net contents of wine for

which no standard of fill is prescribed, e.g., 730 ml (73 cl).

ATF is soliciting comments on this proposed amendment to the

regulations. ATF is also soliciting comments on the following:

1. Whether the regulations should be amended in accordance with the

petitioner's specific request to allow the net contents statement to be

expressed in centiliters only on wine bottled in a 750 milliliter

standard of fill;

2. Whether the regulations should be amended to authorize the net

contents statement for wine in containers of less than 1 liter to be

expressed in milliliters, centiliters, or decimal portions of liter.

For example, in the case of wine bottled in a 750 milliliter standard

of fill the net contents may be stated on the label as ``750 ml,'' ``75

cl,'' or ``.75 L.'' ; or

3. Whether the regulations should be amended to be consistent with

EU regulations, i.e., regardless of the container size, the net

contents of wine shall be expressed in liters, milliliters, or

centiliters.

Executive Order 12866

It has been determined that this proposed rule is not a significant

regulatory action by Executive Order 12866. Therefore, a regulatory

assessment is not required.

Regulatory Flexibility Act

It is hereby certified that this proposed regulation will not have

a significant economic impact on a substantial number of small

entities. The proposed rule is liberalizing in nature in that wine

producers will have greater choices in labeling their products.

Accordingly, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.

3507) and its implementing regulations, 5 CFR Part 1320, do not apply

to this notice of proposed rulemaking because no new requirement to

collect information is proposed. Section 4.37 (previously approved

under OMB control number 1512-0482) is being amended to allow producers

to state the net contents of their products in centiliters as an

alternative to milliliters for wine in containers of less than 1 liter.

The proposed amendments are liberalizing in nature, are not

substantive, and do not impose any additional burden on the industry.

Public Participation

ATF requests comments on the proposed regulations from all

interested persons. Comments received on or before the closing date

will be carefully considered. Comments received after that date will be

given the same consideration if it is practical to do so, but assurance

of consideration cannot be given except as to comments received on or

before the closing date.

ATF will not recognize any material in comments as confidential.

Comments may be disclosed to the public. Any material which the

commenter considers to be confidential or inappropriate for disclosure

to the public should not be included in the comment. The name of the

person submitting a comment is not exempt from disclosure.

Any interested person who desires an opportunity to comment orally

at a public hearing should submit his or her request, in writing, to

the Director within the 90-day comment period. The Director, however,

reserves the right to determine, in light of all circumstances, whether

a public hearing is necessary.

Disclosure

Copies of the petition, this notice, and the written comments will

be available for public inspection during normal business hours at: ATF

Public Reading Room, Room 6480, 650 Massachusetts Avenue, NW.,

Washington, DC.

Drafting Information

The author of this document is James P. Ficaretta, Regulations

Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 4

Advertising, Consumer protection, Customs duties and inspection,

Imports, Labeling, Packaging and containers, and Wine.

Authority and Issuance

Accordingly, ATF is proposing to amend Part 4 in Title 27 of the

Code of Federal Regulations as follows:

[[Page 27019]]

PART 4--LABELING AND ADVERTISING OF WINE

Paragraph 1. The authority citation for 27 CFR Part 4 continues to

read as follows:

Authority: 27 U.S.C. 205.

Paragraph 2. Section 4.37 is amended by revising paragraphs

(a)(2), (b)(1), and (b)(2) to read as follows:

Sec. 4.37 Net contents.

(a) * * *

(2) If less than one liter, net contents shall be stated in

milliliters (ml) or centiliters (cl), or both.

(b) * * *

(1) For the metric standards of fill: 3 liters (101 fl. oz.); 1.5

liters (50.7 fl. oz.); 1 liter (33.8 fl. oz.); 750 ml or 75 cl (25.4

fl. oz.); 500 ml or 50 cl (16.9 fl. oz.); 375 ml or 37.5 cl (12.7 fl.

oz.); 187 ml or 18.7 cl (6.3 fl. oz.); 100 ml or 10 cl (3.4 fl. oz.);

and 50 ml or 5 cl (1.7 fl. oz.).

(2) Equivalent volumes of less than 100 fluid ounces shall be

stated in fluid ounces only, accurate to the nearest one-tenth of a

fluid ounce; for example, 700 ml or 70 cl (23.7 fl. oz.).

* * * * *

Paragraph 3. Section 4.38 is amended by revising the first

sentence in paragraphs (b)(1) and (b)(2) to read as follows:

Sec. 4.38 General requirements.

(a) * * *

(b) Size of type. (1) Containers of more than 187 milliliters (18.7

centiliters). * * *

(2) Containers of 187 milliliters (18.7 centiliters) or less. * * *

* * * * *

Sec. 4.71 [Amended]

Paragraph 4. Section 4.71(a)(3) is amended by adding ``(18.7

centiliters)'' after ``187 milliliters''.

Paragraph 5. Section 4.73(a) is revised to read as follows:

Sec. 4.73 Metric standards of fill.

(a) Authorized standards of fill. The standards of fill for wine

are the following:

3 liters

1.5 liters

1 liter

750 milliliters (or

75 centiliters)

500 milliliters (or

50 centiliters)

375 milliliters (or 37.5 centiliters)

187 milliliters (or

18.7 centiliters)

100 milliliters (or 10

centiliters)

50 milliliters (or 5

centiliters)

* * * * *

Signed: March 17, 1998.

John W. Magaw,

Director.

Approved: April 20, 1998.

John P. Simpso,

Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).

[FR Doc. 98-13017 Filed 5-14-98; 8:45 am]

BILLING CODE 4810-31-P