Technical Corrections to the TTB Regulations

SUPPLEMENTARY INFORMATION:

Due to the number and non-substantive nature of the technical corrections made in this document, not all individual amendments are discussed below in this document's preamble, but all changes are described in the regulatory text section further below.

General Description of Technical Amendments

The Alcohol and Tobacco Tax and Trade Bureau (TTB) periodically makes non-substantive technical corrections to its regulations, which are contained in 27 CFR chapter I. The technical amendments described in this document do not add any new or change any existing TTB regulatory requirement, and the described amendments do not change TTB's interpretation of any regulation. Additionally, the described amendments do not add any new or change any existing recordkeeping, reporting, or labeling requirement to the TTB regulations, nor do they change any burden associated with such requirements.

In general, throughout its regulations, TTB is correcting grammatical, spelling, and typographical errors; correcting or updating statutory authority citations, regulatory cross-references, and TTB form numbers; updating Office of Management and Budget (OMB) control numbers for existing TTB information collections; updating references to publications and agency names and organizational structures; and updating mailing, delivery, and website addresses.

Also, in light of Treasury Department policy, TTB is replacing certain gender exclusive pronouns, such as “he” and “his,” with specific references to official titles or positions, such as “the Secretary,” or with gender inclusive or neutral pronouns or phrases, such as “their,” “he or she,” or “her or his.” In particular, TTB is revising gender exclusive references to the Secretary of the Treasury, the TTB Administrator, and certain other government officials. However, given the large number of gender exclusive pronouns in some parts of its regulations that refer to TTB officers, industry members, or members of the public, TTB will make further similar amendments in future rulemaking documents.

With regard to updating statutory authority citations, TTB is primarily revising the general statutory authority citations for the regulations contained in 27 CFR parts 20, 29, 44, 45, 46, and 70 to add a reference to 26 U.S.C. 6109, which is the section of the Internal Revenue Code (IRC) that authorizes the collection of identifying numbers such as employer identification numbers from persons required to file returns, statements, or other documents. The addition of 26 U.S.C. 6109 to the statutory authority citation lists for those CFR parts merely corrects those lists and does not add or change any requirement to provide TTB with identifying numbers.

Other Technical Amendments

In addition to the general technical corrections noted above, TTB is making other unique technical amendments in specific parts of 27 CFR chapter I, as described below.

Part 4, Labeling and Advertising of Wine

In 27 CFR 4.10, Meaning of terms, TTB is correcting typographical errors in the definitions of “pure condensed must” and “sugar.”

Part 9, American Viticultural Areas

In 27 CFR 9.11(b), TTB is updating the postal mail and hand-delivery addresses for the submission of American viticultural area (AVA) petitions. TTB is also correcting typographical and other unintended errors in the boundary descriptions of several AVAs. These corrections do not change the intended boundary of any existing AVA, nor do they add or remove any acreage from any established AVA. Among those specific boundary corrections are three for the Eagle Foothills AVA as described in 27 CFR 9.252—in paragraph (c)(2), the phrase “the western boundary of sections 31 and 30 to the northwest corner of section 31,” is corrected to read “the western boundary of section 31 to the southwest corner of section 30;” in paragraph (c)(3), “section 31” is corrected to read “section 30;” and, in paragraph (c)(9), “3,400-foor” is corrected to read “3,400-foot.”

Part 19, Distilled Spirits Plants

Among other corrections in part 19, TTB is updating cross-references to 27 CFR part 5, Labeling and Advertising of Distilled Spirits, contained in that part in response to the publication of T.D. TTB-176, Modernization of the Labeling and Advertising Regulations for Distilled Spirits and Malt Beverages, published in the Federal Register of February 9, 2022, at 87 FR 7526. While T.D. TTB-176 revised part 5 in its entirety, that final rule inadvertently did not update the cross-references to that part contained in part 19. As such, this document updates the relevant cross-references contained in part 19 to match the current part 5 subpart designations and section numbers.

Part 21, Formulas for Denatured Alcohol and Rum

In 27 CFR 21.151, TTB is correcting an inadvertent error made in a final rule published in 2016 to amend the regulations concerning denatured alcohol and products made with industrial alcohol. See T.D. TTB-140, published in the Federal Register on August 30, 2016, at 81 FR 59445. In that final rule, TTB removed certain obsolete special denatured alcohol (S.D.A.) formulas from the regulations, including Formula No. 27-B, which, at the time, was described in 27 CFR 21.54. As a result of that formula's removal, TTB removed all references to S.D.A. Formula No. 27-B from the table contained in § 21.151, List of denaturants authorized for denatured spirits, including its listing as the only approved formula for “Green soap, U.S.P.” However, in T.D. TTB-140, TTB inadvertently failed to include an amendatory instruction to remove the entire entry for “Green soap, U.S.P.” from the approved formulas table. Therefore, TTB is removing the remaining portion of that obsolete entry.

Part 24, Wine

TTB recently published a final rule amending certain of its regulations pertaining to the production of wine in 27 CFR part 24 to add to the list of materials and processes authorized for the treatment of wine and of the juice from which wine is made, and to expand the authorized uses of certain materials already authorized under the regulations. See T.D. TTB-185, published in the Federal Register on August 24, 2022, at 87 FR 51880. That final rule contained an inadvertent error in the amended regulatory text of 27 CFR 24.250. As explained in that final rule's related prior notice of proposed rulemaking (Notice No. 164, published in the Federal Register on November 22, 2016, at 81 FR 83752) and in the final rule, TTB intended to make a technical change to amend § 24.250, Application for use of new treating material or process, by revising paragraph (b)(4) to state that an application to use a new treating material or process must include documentary evidence from the FDA that the material is consistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act for its intended purpose in the amounts proposed for the particular treatment contemplated. This differs from the original regulatory text in that it does not require documentary evidence that the FDA has “approved” the use of the material. However, the amendatory instruction for § 24.250 in the final rule contained an inadvertent error that caused all of paragraph (b) to be removed and replaced by the text that was only intended to amend paragraph (b)(4). TTB is correcting § 24.250 by restoring the previous text of paragraph (b) and by amending only the text of paragraph (b)(4) as intended.

TTB also is amending 27 CFR 24.270, which sets forth the Federal excise tax rates on wine to reflect the statutory increase, from 14 percent to 16 percent, in the maximum alcohol by volume for the still wine tax class at 26 U.S.C 5041(b)(1) and in the minimum alcohol by volume for the still wine tax class at 26 U.S.C. 5041(b)(2). TTB is taking this action in response to the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (see Division EE of the Consolidated Appropriations Act of 2021 (Pub. L. 116-260)), which made permanent the temporary provisions of the Craft Beverage Modernization Act contained within the Tax Cuts and Jobs Act of 2017 (Pub. L. 115-97).

TTB is correcting 27 CFR 24.310, Taxpaid removals from bond record, to include a reference to allowing proprietors to record the tax class of wine removed from bond, in lieu of recording the alcohol content of the wine. TTB amended its regulations regarding certain wine records in 1990 (see T.D. ATF-299, published in the Federal Register of June 19, 1990, at 55 FR 24974), including 27 CFR 24.309, Transfer in bond record, and 27 CFR 24.311, Taxpaid wine record, to provide that option, but inadvertently did not include a similar change to § 24.310. This correction addresses that omission.

Part 28, Exportation of Alcohol

In 27 CFR 28.11, Meaning of terms, TTB is revising the definition of “Customs officer” to be consistent with the wording of that term's definition in other parts of 27 CFR chapter I. This revision does not change any part 28 regulatory requirement.

TTB is correcting 27 CFR 28.148, Brewer's report, to include a reference to form TTB F 5130.26, Quarterly Brewer's Report of Operations, in addition to the existing reference to form TTB F 5130.9, Brewer's Report of Operations, as a form certain small brewers may use for reporting, including the reporting of removals of beer or beer concentrate for purposes of exportation, use of supplies on vessels and aircraft, or transfer to a Foreign Trade Zone (FTZ). Section 28.148 requires that brewers keep records and include in their operations reporting the quantity of beer or beer concentrate removed for such purposes, and elsewhere in the TTB regulations certain small brewers are authorized to use either form TTB F 5130.26 or form TTB F 5130.9, as appropriate, for such reporting. See 27 CFR 25.297. In T.D. TTB-123, published in the Federal Register on September 30, 2014, at 79 FR 58674, TTB amended § 25.297 to allow certain small brewers to report their operations reports on a quarterly basis (rather than monthly) using either form TTB F 5130.9 or form TTB F 5130.26. However, in that final rule, TTB inadvertently did not make a corresponding amendment to § 28.148. This amendment to § 28.148 does not change that section's reporting requirement or burden as it merely corrects that section to provide that brewers authorized to submit quarterly operations reports may choose to use either form TTB F 5130.9 or form TTB F 5130.26 to do so.

Part 29, Stills and Miscellaneous Regulations

TTB is restoring “condenser” to the list of terms defined in part 29, subpart C, Stills, at 27 CFR 29.45, as that definition appears to have been inadvertently removed from that list in 2001. The regulations addressing stills appeared in 27 CFR part 170 prior to a reorganization of the regulations in 2001. TTB's predecessor agency, the Bureau of Alcohol, Tobacco, and Firearms (ATF), published T.D. ATF-439 in the Federal Register on February 2, 2001, at 66 FR 8768, amending certain definitions and regulations in part 170, including some definitions in 27 CFR 170.45, which is now 27 CFR 29.45. See 66 FR 8768, 8770. That final rule did not amend or affect the definition of “condenser” but, in the 2001 edition of Title 27 of the Code of Federal Regulations published following the issuance of the final rule, the term “condenser” no longer appeared in the list of definitions at 27 CFR 170.45. ATF then redesignated part 170 as part 29 in T.D. ATF-462, published in the Federal Register on August 15, 2001, at 66 FR 42735, which recodified § 170.45 as 27 CFR 29.45. See 66 FR 42735, 42737. This correction addresses the inadvertent removal of the definition of “condenser” from the regulations.

Part 30, Gauging Manual

TTB is adding a section to part 30, Gauging Manual, at 27 CFR 30.3 to provide the public with information on how to obtain a copy of the delegation order regarding the assignment of the TTB Administrator's regulatory authorities in part 30 to other TTB officers. These delegations of authority are set forth in TTB Order 1135.30, Delegation of the Administrator's Authorities in 27 CFR part 30, Gauging Manual, which is referenced in the definition of “Appropriate TTB officer” in 27 CFR 30.11, but additional information on accessing the delegation order through the TTB website or by mail is not currently included in the regulations. Similar sections regarding TTB delegation orders are present in other parts of 27 CFR chapter I that have related delegation orders and were generally added to that chapter in 2006 through T.D. TTB-44, Administrative Changes to Alcohol, Tobacco and Firearms Regulations Due to the Homeland Security Act of 2002, published by TTB in the Federal Register on April 4, 2006, at 71 FR 16918. A section of this type was inadvertently not included for part 30, and this amendment makes part 30 consistent with those other parts. The added section is merely informational, and it imposes no new regulatory or information collection requirements on regulated industry members.

Part 40, Manufacture of Tobacco Products, Cigarette Papers and Tubes, and Processed Tobacco

In 27 CFR 40.22, TTB is removing the last sentence of paragraph (b)(1), which provides that TTB may publish its constructive price determinations for large cigars if TTB finds that such public disclosure is necessary. TTB has determined that this provision is inconsistent with the taxpayer confidentiality provisions of the Internal Revenue Code at 26 U.S.C. 6103 which prohibit public disclosure of such tax-related information. For that reason, neither TTB nor its predecessor agency, ATF, have published a constructive price determination made under § 40.22(b).

TTB is updating the text of 27 CFR 40.491(b)(2) to be consistent with the amendments made to 27 CFR 40.522 in T.D. TTB-104, which implemented requirements from the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA); see 77 FR 37287, June 21, 2012. The correction to § 40.491(b)(2) makes that section consistent with § 40.522(d)(3) as amended by T.D. TTB-104, which allows a manufacturer of tobacco products who removes processed tobacco for any of the purposes listed in § 40.72(b)(2) to not report such removals on their tobacco operations report, form TTB F 5250.2 (while keeping records of such removals pursuant to § 40.521).

Part 44, Exportation of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, or With Drawback of Tax

In 27 CFR 44.11, TTB is adding a definition of “customs officer” for informational purposes as that term is used throughout part 44. In §§ 44.122 and 44.129, TTB is removing references to Treasury Department Circular 154, which concerned the acceptance of government obligations in lieu of bonds, since the Department no longer publishes that circular. Instead, those sections will refer to the Treasury Department regulations contained in 31 CFR part 225, Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.

Part 71, Rules of Practice in Permit Proceedings

In 27 CFR part 71, which concerns TTB's rules of practice in permit proceedings, TTB is amending the general statutory authority citation by adding a citation to the Administrative Procedure Act (5 U.S.C. 551-559). In addition, TTB is adding 26 U.S.C. 5171 to the part's general statutory authority citation because that section of the IRC concerns the establishment of, and permits for, distilled spirits plants. These additions are merely informational in nature, and do not affect or change TTB's interpretation of any regulatory or information collection requirement contained in part 71.

In 27 CFR 71.96, which concerns the disqualification of administrative law judges, TTB is revising that section to remove gender-specific pronouns but the intent of the regulation is unchanged.

In 27 CFR 71.97, which lists the power of administrative law judges in TTB-related matters, TTB is correcting that section to state that those judges make “initial decisions” in suspension, revocation, or annulment proceedings against TTB-issued permits rather than final decisions. This correction makes § 71.97(h) consistent with 27 CFR 71.78 and 71.79. TTB believes that a 1985 revision of § 71.97(h) inadvertently dropped the words “initial decisions” from that paragraph. See T.D. ATF-199, published in the Federal Register on March 6, 1985, at 50 FR 9152, 9197. In addition, TTB is correcting the paragraph formatting of § 71.97 to conform that section to current CFR format requirements; the text of section is unchanged except for the correction to paragraph (h) noted above.

Finally, in 27 CFR 71.116, which concerns the TTB Administrator's review of application proceedings, TTB is updating references to the “Under Secretary of the Treasury” with references to “Assistant Secretary for Tax Policy.” The current text refers to the Under Secretary for Enforcement, a position that no longer exists within the Department of the Treasury, and the duties of that former position relevant to TTB have been delegated to the Assistant Secretary for Tax Policy. TTB is also updating gender exclusive references in this section and is removing the statutory authority statement at the end of the section as it cites several firearms-related laws that no longer apply to TTB. The Bureau believes that the general statutory authorities cited for part 71, as amended in this document, support the regulatory provisions of § 71.116, and, as such, there is no need for a separate section-level authority citation. As with the other technical amendments in this document, these technical amendments do not affect the requirements of that section.

Regulatory Analysis and Notices

Regulatory Flexibility Act

Because no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply.

Executive Order 12866

It has been determined that this technical correction final rule is not a significant regulatory action as defined in Executive Order 12866 of September 30, 1993. Therefore, a regulatory assessment is not necessary.

Paperwork Reduction Act

The Office of Management and Budget (OMB) has previously reviewed, approved, and assigned control numbers to the collections of information contained in certain regulations amended in this final rule in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507). An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. The technical corrections contained in this document do not add any new or affect the existing requirements or estimated burden of any established TTB information collection, recordkeeping, or labeling requirement.

Inapplicability of Prior Notice and Public Comment Procedures and Delayed Effective Date

TTB is issuing this final rule without prior notice and opportunity for public comment pursuant to authority under section 4(a) of the Administrative Procedure Act, as amended (APA) (5 U.S.C. 553(b)(B)). That provision authorizes an agency to issue a rule without prior notice when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” In this final rule, TTB is merely making technical corrections to the TTB regulations, which do not change the requirements or TTB's interpretation of any regulation and do not change any TTB information collection, recordkeeping, or labeling requirement. Therefore, TTB finds that prior notice and opportunity for comment is unnecessary.

Amendments to the Regulations

For the reasons discussed in the preamble, 27 CFR chapter I is amended as follows:

1. The authority citation for part 1 continues to read as follows:

Authority: 27 U.S.C. 203, 204, 206, 211 unless otherwise noted.

2. In the following table, for each section indicated in the left column, remove the text indicated in the middle column from wherever it appears in the section and add in its place, the text indicated in the right column: