Hard Cider; Postponement of Labeling Compliance Date (97-2523)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 4 and 24

[T.D. ATF-418 Re: T.D. ATF--398, Notice No. 859 and Notice No. 869]

RIN 1512-AB71

Hard Cider; Postponement of Labeling Compliance Date (97-2523)

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

the Treasury.

ACTION: Temporary rule (Treasury decision).

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SUMMARY: This temporary rule postpones the mandatory date for the

labeling of hard cider. In the Proposed Rules section of this Federal

Register, ATF is also issuing a notice of proposed rulemaking inviting

comments on proposed changes to the label requirements for hard cider

for a 60-day period following the publication of the notice.

DATES: Effective date: This document is effective retroactive to

February 17, 1999.

Compliance date: Compliance with the hard cider labeling

requirements in 27 CFR 4.21 and 24.257 is not mandatory until September

27, 2000.

FOR FURTHER INFORMATION CONTACT: Marjorie D. Ruhf, Regulations

Division, 650 Massachusetts Avenue, NW, Washington, DC 20226; (202)

927-8230; or [email protected].

SUPPLEMENTARY INFORMATION:

Background

On August 21, 1998, the Bureau of Alcohol, Tobacco and Firearms

(ATF) issued a temporary rule to implement various sections of the

Taxpayer Relief Act of 1997, Public Law 105-34 (``the Act''). Section

908 of the Act amended the Internal Revenue Code of 1986 (IRC) to

create a new excise tax category for hard cider. The temporary rule,

T.D. ATF-398 (63 FR 44779) included rules for labeling hard cider. On

the same

[[Page 51897]]

day, ATF issued a notice of proposed rulemaking, Notice No. 859 (63 FR

44819), inviting comments on this temporary rule for a 60 day period.

In response to requests from the industry, ATF reopened the comment

period for an additional 30 days on November 6, 1998, by Notice No. 869

(63 FR 59921).

ATF received 45 comments in response to these notices. Two comments

addressed the issue of semi-generic wine designations (also covered in

the temporary rule and notices), and all the rest concerned the hard

cider rules. All the comments will be discussed in a future final rule,

but ATF has identified one area, labeling of hard cider, where comments

indicate the temporary rule as originally issued imposes an unintended

and unnecessary burden. By this document, we are postponing the

compliance date for the hard cider labeling rules (originally February

17, 1999), so that we can develop alternative labeling rules. The

temporary rule and the specific comments are discussed in detail in the

notice of proposed rulemaking published in this issue of the Federal

Register.

Regulatory Flexibility Act

The provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et

seq.) relating to a final regulatory flexibility analysis do not apply

to this rule because the agency was not required to publish a general

notice of proposed rulemaking under 5 U.S.C. 553 or any other law.

Pursuant to 26 U.S.C. 7805(f), this temporary rule will be submitted to

the Chief Counsel for Advocacy of the Small Business Administration for

comment on its impact on small business.

Executive Order 12866

It has been determined that this rule is not a significant

regulatory action as defined by Executive Order 12866. Therefore, a

regulatory assessment 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 final rule because no new collection of information is

contained in this Treasury decision.

Administrative Procedure Act

This document merely defers a compliance date for labeling rules

for hard cider while ATF considers alternative labeling requirements.

In view of the immediate need to inform the industry of this action, it

is found to be impracticable to issue this Treasury decision with

notice and public procedure under 5 U.S.C. 553(b), or subject to the

effective date limitation in section 553(d).

Drafting Information: The principal author of this document is

Marjorie Ruhf, of the Regulations Division, Bureau of Alcohol, Tobacco

and Firearms.

List of Subjects

27 CFR Part 4

Advertising, Consumer protection, Customs duties and inspection,

Imports, Labeling, Packaging and containers, Wine.

27 CFR Part 24

Administrative practice and procedure, Authority delegations,

Claims, Electronic fund transfers, Excise taxes, Exports, Food

additives, Fruit juices, Labeling, Liquors, Packaging and containers,

Reporting and recordkeeping requirements, Research, Scientific

equipment, Spices and flavoring, Surety bonds, Taxpaid wine bottling

house, Transportation, Vinegar, Warehouses, Wine.

Therefore, pursuant to the authority set forth in 26 U.S.C. 5368

and 27 U.S.C. 205(e), ATF is postponing the compliance date with

respect to the use of the term ``hard cider'' set forth in 27 CFR

4.21(e)(5) and 24.257(a)(3)(iii) and (iv) to September 27, 2000.

Dated: June 16, 1999.

John W. Magaw,

Director.

Dated: August 13, 1999.

John P. Simpson,

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

[FR Doc. 99-24833 Filed 9-24-99; 8:45 am]

BILLING CODE 4810-31-U