SECTION 5386.-SPECIAL NATURAL WINES 26 CFR 240.440: Materials. (Also 201.437.) (Also Section 5(e); 27 CFR 4.21.) Rev. Rul. 63-311 "May Wine," which is not expressly defined by Federal regulations, is a product made with light natural white grape wine as a base, flavored with woodruff herbs, leaves, or essence and having an alcoholic content not in excess of 14 percent by volume. Such wine is not considered an aperitif wine under Section 4.21 (g) of the Labeling and Advertising of Wine Regulations, issued under the Federal Alcohol Administration Act and, therefore, should be designated and labeled as "May Wine." There should appear in direct conjunction therewith the words "Light White Wine-Flavored with Woodruff Herbs," "Light White Wine-Flavored with Woodruff Leaves," or "Light White Wine-Flavored with Woodruff Essence," as the case may be. Revenue Rulings 54-126, C.B. 1954-1, 304, and 56-691, C.B. 1956-2, 1044, are hereby superseded. Rev. Rul. 63-71 Only caramel may be used as a coloring material by winemakers in the production of vermouths, aperitif wines, or other special natural wines. Where formulas specify the use of other coloring materials, a new Form 698-Supplemental, Formulas and Process for Wine, must be filed with the Director, Alcohol and Tobacco Tax Division, deleting such coloring materials, or riders may be filed amending the formulas to delete the use of these ingredients. Advice has been requested whether winemakers may use coloring materials other than caramel in the production of vermouths, aperitif wines, or other special natural wines. Alkanet root and root extract, annatto extract and seed, carmine, cochineal, cudbear and cudbear extract, logwood chips extract, and American saffron (carthamus tinctorius L.) have been reclassified as color additives by the Food and Drug Administration of the Department of Health, Education, and Welfare. Section 5386(a) of the Code authorizes the production of special natural wines on bonded wine cellar premises from a base of natural wine with the addition, before, during or after fermentation, of natural herbs, spices, fruit juices, aromatics, essences, and other natural flavorings; and with or without the addition, separately or in combination, of pure dry sugar or a solution of pure dry sugar and water, or caramel. Section 240.440 of the Wine regulations provides in part that in addition to flavoring materials, caramel may be added for coloring. Since section 5386(a) of the Code and the regulations thereunder do not authorize the addition of coloring materials, except caramel, in the production of special natural wines, it is held that winemakers may not use the coloring materials specified above or any coloring material other than caramel in producing vermouths, aperitif wines, or other special natural wines. 1 Prepared pursuant to Revenue Procedure 62-17, C.B. 1962-2, 407. Further, where formulas specify the use of any of the specified coloring materials or any coloring material except caramel, a new Form 698-Supplemental, Formulas and Process for Wine, must be filed deleting such coloring materials. Alternatively, riders may be filed amending the formulas to delete the use of these ingredients. The riders should be filed in triplicate with the Director, Alcohol and Tobacco Tax Division, showing (1) the name and registry number of the bonded wine cellar premises, (2) the original formula number, (3) the date of approval of the original formula, (4) the name of the product involved, and (5) the substance which is being eliminated. 26 CFR 201.437: Treatment of spirits and wines. Definition and labeling of "May Wine." See Rev. Rul. 63–31, page 400. SUBCHAPTER G.-BREWERIES PART L-ESTABLISHMENT SECTION 5401.-QUALIFYING DOCUMENTS 26 CFR 245.44: Supplemental and superseding notices. Rev. Rul. 63-72 Section 245.44 of the Beer Regulations provides, in part, that brewers shall file a new and complete notice once every four years, superseding those previously filed, to be effective on the effective date of renewal of the brewer's bond as provided in section 245.45 of the regulations. Held, when executing and filing a new bond, an incorporated brewer need not file a certified copy of its corporate charter in support of the notice on Form 27-C, Brewer's Notice, provided the notice is accompanied by a statement of the brewer to the effect that there has been no change in the corporate charter which is on file in the office of the Assistant Regional Commissioner, Alcohol and Tobacco Tax, of the region in which the brewery is located. Federal Alcohol Administration Act SECTION 3.-UNLAWFUL BUSINESS WITHOUT PERMIT 27 CFR 3.20: Distilled spirits in bulk. Purchase and transfer of warehouse receipts by retail liquor dealer. See Rev. Rul. 63-12, page 382. SUBCHAPTER E.—RECORDS OF MANUFACTURERS OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, EXPORT WAREHOUSE PROPRIETORS, AND DEALERS IN TOBACCO MATERIALS SECTION 5741.-RECORDS TO BE MAINTAINED 26 CFR 270.183: Record of tobacco products. Procedure for recording and reporting tobacco products removed subject to tax and treatment of tax determined (including taxpaid) products received into the factory. See Rev. Proc. 63–13, page 501. 26 CFR 270.184: Record in support of removals subject to tax. Procedure for recording and reporting tobacco products removed subject to tax and treatment of tax determined (including taxpaid) products received into the factory. See Rev. Proc. 63-13, page 501. 26 CFR 270.202: Reports. Procedure for recording and reporting tobacco products removed subject to tax and treatment of tax determined (including taxpaid) products received into the factory. See Rev. Proc. 63–13, page 501. PART IV LEGISLATION AND TREATIES TABLE OF CONTENTS SUBPART A-TAX CONVENTIONS United States-Belgium Income Convention (Rev. Rul. 63–51). Page 407 United States-Canada Income Tax Convention (Rev. Rul. 63–113)__ 410 SUBCHAPTER E.-RECORDS OF MANUFACTURERS OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, EXPORT WAREHOUSE PROPRIETORS, AND DEALERS IN TOBACCO MATERIALS SECTION 5741.-RECORDS TO BE MAINTAINED 26 CFR 270.183: Record of tobacco products. Procedure for recording and reporting tobacco products removed subject to tax and treatment of tax determined (including taxpaid) products received into the factory. See Rev. Proc. 63-13, page 501. 26 CFR 270.184: Record in support of removals subject to tax. Procedure for recording and reporting tobacco products removed subject to tax and treatment of tax determined (including taxpaid) products received into the factory. See Rev. Proc. 63-13, page 501. 26 CFR 270.202: Reports. Procedure for recording and reporting tobacco products removed subject to tax and treatment of tax determined (including taxpaid) products received into the factory. See Rev. Proc. 63-13, page 501. |