82 FR 57351 - Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider; Delayed Compliance Date of the Hard Cider Tax Class Labeling Statement Requirement

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 82, Issue 232 (December 5, 2017)

Page Range		57351-57353
FR Document		2017-26281

This temporary rule delays the compliance date of a wine labeling requirement that was established by T.D. TTB-147, a temporary rule published on January 23, 2017. In that rule, TTB required the statement ``Tax class 5041(b)(6)'' to appear on the container of any wine for which the hard cider tax rate is claimed if it is removed from wine premises or customs custody on or after January 1, 2018. This temporary rule delays the compliance date for that requirement by one year. Specifically, the tax class statement ``Tax Class 5041(b)(6)'' will not be required to appear on containers of wine that are taxed at the hard cider tax rate until January 1, 2019. Through a notice of proposed rulemaking published elsewhere in this issue of the Federal Register, TTB is soliciting comments from all interested parties on this delay of the compliance date for the wine labeling requirement, and, also in that document, TTB is reopening for 60 days the comment period for Notice No 168, the notice of proposed rulemaking that published concurrently with T.D. TTB-147 on January 23, 2017.

Federal Register, Volume 82 Issue 232 (Tuesday, December 5, 2017)

[Federal Register Volume 82, Number 232 (Tuesday, December 5, 2017)]
[Rules and Regulations]
[Pages 57351-57353]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26281]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 24 and 27

[Docket No. TTB-2016-0016; T.D. TTB-147A; Re: T.D. TTB-145, T.D. TTB-
146, T.D. TTB-147, Notice No. 168, and Notice No. 168A]
RIN 1513-AC31


Implementation of Statutory Amendments Requiring the Modification 
of the Definition of Hard Cider; Delayed Compliance Date of the Hard 
Cider Tax Class Labeling Statement Requirement

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Temporary rule; delay of compliance date.

-----------------------------------------------------------------------

SUMMARY: This temporary rule delays the compliance date of a wine 
labeling requirement that was established by T.D. TTB-147, a temporary 
rule published on January 23, 2017. In that rule, TTB required the 
statement ``Tax class 5041(b)(6)'' to appear on the container of any 
wine for which the hard cider tax rate is claimed if it is removed from 
wine premises or customs custody on or after January 1, 2018. This 
temporary rule delays the compliance date for that requirement by one 
year. Specifically, the tax class statement ``Tax Class 5041(b)(6)'' 
will not be required to appear on containers of wine that are taxed at 
the hard cider tax rate until January 1, 2019. Through a notice of 
proposed rulemaking published elsewhere in this issue of the Federal 
Register, TTB is soliciting comments from all interested parties on 
this delay of the compliance date for the wine labeling requirement, 
and, also in that document, TTB is reopening for 60 days the comment 
period for Notice No 168, the notice of proposed rulemaking that 
published concurrently with T.D. TTB-147 on January 23, 2017.

DATES: This temporary rule is effective December 5, 2017 through 
January 23, 2020.

FOR FURTHER INFORMATION CONTACT: Kara Fontaine, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., 
Box 12, Washington, DC 20005; telephone (202) 453-1039 ext. 103.

SUPPLEMENTARY INFORMATION: 

Background

TTB Authority

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the 
Department of the Treasury administers chapter 51 of the Internal 
Revenue Code (IRC), which sets forth the Federal excise taxes on wine 
and related provisions, including provisions addressing the production 
and marking of wine (see 26 U.S.C. chapter 51). Section 5041 of the IRC 
(26 U.S.C. 5041) imposes six excise tax rates, including the hard cider 
tax rate, on wines. These tax rates are associated with six tax classes 
that correspond to section 5041(b), subparagraphs (1) through (6). The 
tax on wine is determined at the time of removal (generally, removal 
from a bonded wine premises or release from customs custody) for 
consumption or sale (26 U.S.C. 5041(a)). Wine so removed must be in 
containers bearing marks and labels evidencing compliance with the IRC 
as the Secretary of the Treasury may by regulations prescribe (26 
U.S.C. 5368(b)).
    TTB administers chapter 51 of the IRC and its implementing 
regulations pursuant to section 1111(d) of the Homeland Security Act of 
2002, codified at 6 U.S.C. 531(d). In addition, the Secretary has 
delegated various authorities through Treasury Department Order 120-01, 
dated December 10, 2013 (superseding Treasury Order 120-01, dated 
January 24, 2003), to the TTB Administrator to perform the functions 
and duties in the administration and enforcement of these laws. The TTB 
regulations that implement the provisions of the IRC, as they relate to 
wine, include regulations in 27 CFR part 24 for domestic wine and 27 
CFR part 27 for imported wine.

PATH Act's Modification of the IRC Definition of Hard Cider

    On December 18, 2015, the President signed into law the 
Consolidated Appropriations Act, 2016 (Pub. L. 114-113). Division Q of 
this Act is titled the Protecting Americans from Tax Hikes Act of 2015 
(PATH Act). Section 335(a) of the PATH Act amended the IRC at 26 U.S.C. 
5041 by modifying the definition of ``hard cider'' for excise tax 
classification purposes. Pursuant to section 335(b) of the PATH Act, 
the amended definition applies to hard cider removed on or after 
January 1, 2017. This allowed a broader range of products to be 
eligible for the hard cider tax rate. Effective January 1, 2017, a wine 
removed from wine premises or customs custody is eligible for the hard 
cider tax rate of 22.6 cents per gallon if it:
     Contains no more than 0.64 gram of carbon dioxide per 100 
milliliters of wine;
     Is derived primarily from apples or pears, or from apple 
juice concentrate or pear juice concentrate and water;
     Contains no fruit product or fruit flavoring other than 
apple or pear; and
     Contains at least one-half of 1 percent and less than 8.5 
percent alcohol by volume.

Publication of Temporary Rule and Notice for Comment

    In response to the PATH Act, TTB published in the Federal Register 
on January 23, 2017, a temporary rule, T.D. TTB-147 (82 FR 7653), to 
amend its regulations in 27 CFR parts 24 and 27 pertaining to the 
modified definition of ``hard cider'' for tax purposes. In addition, 
TTB solicited comments from the public on the temporary regulations 
implementing the PATH Act through a notice of proposed rulemaking 
(NPRM), Notice No. 168 (82 FR 7753), published in the Federal Register 
concurrently with the temporary rule. The temporary rule, the notice of 
proposed rulemaking, and the comments regarding the temporary 
regulations received in response to the NPRM may be viewed in their 
entirety within Docket No. TTB-2016-0014 at the Regulations .gov Web 
site at https://www.regulations.gov/.

Current Requirement for Tax Class Statement To Appear on Containers of 
Wine Taxed at the Hard Cider Tax Rate

    In T.D. TTB-147, TTB amended its regulations in parts 24 and 27 to 
require the statement ``Tax class 5041(b)(6)'' to appear on the 
container of any wine for which the hard cider tax rate is claimed; see 
Sec. Sec.  24.257(a)(4) and 27.59(b). In issuing the temporary rule, 
TTB recognized that industry members who produce and import hard cider 
would need time to comply with this requirement. Therefore, in Sec.  
24.257(a)(4), TTB provided a one-year grace period before the tax class 
labeling requirement would go into effect, and, as set forth in T.D. 
TTB-147, this grace period applies to products removed prior to January 
1, 2018. As such, T.D. TTB-147 requires that for wine removed

[[Page 57352]]

on or after January 1, 2018, the tax class statement ``Tax Class 
5041(b)(6)'' must appear on the container of any wine for which the 
hard cider tax rate is claimed.

Requests for Delay of the Tax Class Statement Compliance Date

    In response to the request for comments on T.D. TTB-147, TTB 
received a comment, posted on February 15, 2017, from Ian Flom of 
Mercier Orchards, indicating that the timeframe to implement the new 
``Tax Class 5041(b)(6)'' labeling statement requirement is insufficient 
because he buys labels in bulk and has a supply of labels that do not 
bear the tax class statement that he will not be able to use up before 
January 1, 2018. Mr. Flom also submitted other comments for TTB 
consideration.
    TTB also was copied on a letter addressed to Steven T. Mnuchin, 
Secretary of the Treasury, dated August 1, 2017, from the United States 
Association of Cider Makers (USACM), which represents approximately 
one-half of the cider makers in the United States. In its letter, USACM 
requested a one year delay of the requirement to place the hard cider 
tax class labeling statement on products claiming the hard cider tax 
rate removed from wine premises or customs custody after January 1, 
2018.
    In light of this comment and request, TTB is delaying the 
compliance date for the labeling statement requirement.

Requests for Extension of and Reopening of the Comment Period

    In a February 23, 2017 comment in response to Notice No. 168, USACM 
formally requested a 60-day extension of the public comment period in 
order to give its members more time to properly address any of their 
concerns with the regulatory changes. USACM referred to the outstanding 
extension request in their August 1, 2017 letter.
    Through a notice of proposed rulemaking published elsewhere in this 
issue of the Federal Register, TTB is reopening for 60 days the comment 
period for Notice No 168. TTB will consider any new comments submitted 
in response to the reopening of the comment period on T.D. TTB-147 
along with any comments received on this Temporary Rule, T.D. TTB-147A, 
and the suggestions that have already been received from Mr. Flom.

Delayed Compliance Date of the Tax Class Labeling Statement Requirement 
for Hard Cider

    Through publication of this new temporary rule, TTB is amending 27 
CFR 24.257(a)(4) to delay until January 1, 2019, the requirement that 
the tax class statement ``Tax class 5041(b)(6)'' appear on any 
container of wine removed from wine premises or customs custody for 
which the hard cider tax rate is claimed. Because the tax class 
labeling requirement for imported wine claiming the hard cider tax rate 
contained in 27 CFR 27.59(b) is a cross-reference to Sec.  
24.257(a)(4), no change to the regulatory text in Sec.  27.59(b) is 
required.

Updating OMB Control Numbers

    In addition, TTB notes that, under the requirements of the 
Paperwork Reduction Act, the Office of Management and Budget (OMB) 
approved the hard cider tax class labeling statement information 
collection requirement under OMB control number 1513-0138. Therefore, 
TTB is amending Sec. Sec.  24.257 and 27.59 in this temporary rule to 
reflect that control number. TTB also is correcting the OMB control 
number statement in Sec.  24.257 to reflect that the IRC-based wine 
labeling requirements are covered under OMB control number 1513-0092, 
Marks on Wine Containers, and not the labeling-related recordkeeping 
requirements covered under 1513-0115, Usual and Customary Business 
Records Relating to Wine.

Correction to Authority Citation for 27 CFR Part 27

    TTB notes that several rule documents published in late 2016 and 
early 2017 affected 27 CFR part 27, including the authority citation 
list set out at the beginning of that part. Specifically, T.D. TTB-145, 
Amendments To Streamline Importation of Distilled Spirits, Wine, Beer, 
Malt Beverages, Tobacco Products, Processed Tobacco, and Cigarette 
Papers and Tubes and Facilitate Use of the International Trade Data 
System, published on December 22, 2016, at 81 FR 94186, revised the 
part 27 authority citation list to add 26 U.S.C. 5382 (Cellar Treatment 
of Natural Wine) and 26 U.S.C. 6109 (Identifying Numbers). However, 
T.D. TTB-146, Changes to Certain Alcohol-Related Regulations Governing 
Bond Requirements and Tax Return Filing Periods, published on January 
4, 2017, at 82 FR 1108, also revised the part 27 authority citation 
list to add 26 U.S.C. 6109 but not 26 U.S.C. 5382, resulting in the 
inadvertent removal of 26 U.S.C. 5382 from the list, and this error was 
not corrected in T.D. TTB-147. Therefore, in this temporary rule, TTB 
is correcting the authority citation for 27 CFR part 27 to return 26 
U.S.C. 5382 to that part's list of authorities.

Regulatory Analysis and Notices

Public Participation

    To submit comments on the delayed compliance date for the hard 
cider tax class labeling statement described in this temporary rule, or 
to submit new comments on any of the hard cider regulations contained 
in T.D. TTB-147, published in the Federal Register on January 23, 2017, 
at 82 FR 7653, please refer to Notice No. 168A, published in the 
``Proposed Rules'' section of this issue of the Federal Register.

Executive Order 12866

    Certain TTB regulations issued under the IRC, including this one, 
are exempt from the requirements of Executive Order 12866, as 
supplemented and reaffirmed by Executive Order 13563. Therefore, a 
regulatory impact assessment is not required.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.), TTB certifies that this temporary rule will not have a 
significant economic impact on a substantial number of small entities. 
The temporary rule will not impose, or otherwise cause, a significant 
increase in reporting, recordkeeping, or other compliance burdens on a 
substantial number of small entities. Rather, this temporary rule 
decreases burden on impacted entities by delaying the compliance date 
for a TTB labeling requirement that implements certain changes to the 
Internal Revenue Code of 1986 made by the Protecting Americans from Tax 
Hikes Act of 2015 (see Pub. L. 114-113, Division Q, section 335).

Paperwork Reduction Act

    The regulatory sections addressed in this temporary rule (27 CFR 
24.257 and 27.59) contain collections of information that have been 
previously reviewed and approved by OMB in accordance with the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507) and assigned control 
numbers 1513-0092 and 1513-0138. No changes are being made to the 
existing approved information collections.

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

    TTB is issuing this temporary rule without prior notice and comment 
pursuant to authority under section 4(a) of the Administrative 
Procedure Act, as amended (APA; 5 U.S.C. 553(b)). This provision 
authorizes an agency to issue a rule without prior notice and comment 
when the agency for good cause finds that those procedures are

[[Page 57353]]

``impracticable, unnecessary, or contrary to the public interest.''
    In this temporary rule, TTB is delaying the compliance date for the 
requirement that the tax class statement ``Tax class 5041(b)(6)'' 
appear on containers of wine for which the hard cider tax class is 
claimed, from January 1, 2018, to January 1, 2019. TTB finds that prior 
notice and comment is unnecessary because a delayed compliance date 
will provide additional time to industry members to comply with that 
labeling requirement.
    TTB is issuing this temporary rule without a delayed effective date 
pursuant to authority under section 4(c) of the APA (5 U.S.C. 553(d)). 
TTB finds good cause under 5 U.S.C. 553(d)(1) to dispense with the 
effective date limitation in 5 U.S.C. 553(d). This temporary rule 
grants a one-year exemption by delaying the compliance date for a 
labeling statement requirement that would otherwise become effective on 
January 1, 2018. Accordingly, the effective date of this temporary rule 
is December 5, 2017.

Drafting Information

    Kara Fontaine of the Regulations and Rulings Division drafted this 
document with the assistance of other Alcohol and Tobacco Tax and Trade 
Bureau personnel.

List of Subjects

27 CFR Part 24

    Administrative practice and procedure, Cider, Claims, Electronic 
funds transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Hard Cider, Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavorings, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 27

    Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties 
and inspections, Electronic funds transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
Recordkeeping requirements, Wine.

Amendments to the Regulations

    For the reasons discussed in the preamble, TTB is amending 27 CFR 
chapter I, parts 24 and 27 as follows:

PART 24--WINE

0
1. The authority citation for part 24 continues to read as follows:

    Authority:  5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 
5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 
5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 
6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 
U.S.C. 9301, 9303, 9304, 9306.


Sec.  24.257   [Amended]

0
2. In Sec.  24.257:
0
a. Paragraph (a)(4) is amended by removing the date ``January 1, 2018'' 
each place it appears and adding in its place the date ``January 1, 
2019''; and
0
b. The Office of Management and Budget control number reference at the 
end of the section is amended by removing the phrase ``1513-0115 and 
1513-XXXX'' and adding in its place the phrase ``1513-0092 and 1513-
0138''.

PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER

0
3. The authority citation for part 27 is revised to read as follows:

    Authority:  5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 
5001, 5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 
5201, 5205, 5207, 5232, 5273, 5301, 5313, 5382, 5555, 6109, 6302, 
7805.


Sec.  27.59   [Amended]

0
4. In Sec.  27.59, the Office of Management and Budget control number 
reference at the end of the section is amended by removing the phrase 
``number 1513-XXXX'' and adding in its place the phrase ``numbers 1513-
0092 and 1513-0138''.

    Signed: October 30, 2017.
John J. Manfreda,
Administrator.
    Approved: November 30, 2017.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade and Tariff Policy).
[FR Doc. 2017-26281 Filed 12-4-17; 8:45 am]
 BILLING CODE 4810-31-P

Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Rules and Regulations 57351

Libya’’ in the column headed ‘‘Cultural DATES: This temporary rule is effective classification purposes. Pursuant to
property’’, and December 5, 2017 through January 23, section 335(b) of the PATH Act, the
■ c. Adding ‘‘CBP Dec. 17–19 ’’ in the 2020. amended definition applies to hard
column headed ‘‘Decision No.’’. FOR FURTHER INFORMATION CONTACT: Kara cider removed on or after January 1,
Dated: December 1, 2017. Fontaine, Regulations and Rulings 2017. This allowed a broader range of
Kevin K. McAleenan, Division, Alcohol and Tobacco Tax and products to be eligible for the hard cider
Acting Commissioner, U.S. Customs and Trade Bureau, 1310 G Street NW., Box tax rate. Effective January 1, 2017, a
Border Protection. 12, Washington, DC 20005; telephone wine removed from wine premises or
(202) 453–1039 ext. 103. customs custody is eligible for the hard
Approved:
cider tax rate of 22.6 cents per gallon if
Timothy E. Skud, SUPPLEMENTARY INFORMATION:
it:
Deputy Assistant Secretary of the Treasury. Background • Contains no more than 0.64 gram of
[FR Doc. 2017–26278 Filed 12–1–17; 4:15 pm] carbon dioxide per 100 milliliters of
TTB Authority
BILLING CODE 9111–14–P wine;
The Alcohol and Tobacco Tax and • Is derived primarily from apples or
Trade Bureau (TTB) of the Department pears, or from apple juice concentrate or
DEPARTMENT OF THE TREASURY of the Treasury administers chapter 51 pear juice concentrate and water;
of the Internal Revenue Code (IRC), • Contains no fruit product or fruit
Alcohol and Tobacco Tax and Trade which sets forth the Federal excise taxes flavoring other than apple or pear; and
Bureau on wine and related provisions, • Contains at least one-half of 1
including provisions addressing the percent and less than 8.5 percent
27 CFR Parts 24 and 27 production and marking of wine (see 26 alcohol by volume.
U.S.C. chapter 51). Section 5041 of the
[Docket No. TTB–2016–0016; T.D. TTB– Publication of Temporary Rule and
IRC (26 U.S.C. 5041) imposes six excise
147A; Re: T.D. TTB–145, T.D. TTB–146, T.D. Notice for Comment
TTB–147, Notice No. 168, and Notice No. tax rates, including the hard cider tax
168A] rate, on wines. These tax rates are In response to the PATH Act, TTB
associated with six tax classes that published in the Federal Register on
RIN 1513–AC31 correspond to section 5041(b), January 23, 2017, a temporary rule, T.D.
subparagraphs (1) through (6). The tax TTB–147 (82 FR 7653), to amend its
Implementation of Statutory regulations in 27 CFR parts 24 and 27
on wine is determined at the time of
Amendments Requiring the pertaining to the modified definition of
removal (generally, removal from a
Modification of the Definition of Hard ‘‘hard cider’’ for tax purposes. In
bonded wine premises or release from
Cider; Delayed Compliance Date of the
customs custody) for consumption or addition, TTB solicited comments from
Hard Cider Tax Class Labeling
sale (26 U.S.C. 5041(a)). Wine so the public on the temporary regulations
Statement Requirement
removed must be in containers bearing implementing the PATH Act through a
AGENCY: Alcohol and Tobacco Tax and marks and labels evidencing compliance notice of proposed rulemaking (NPRM),
Trade Bureau, Treasury. with the IRC as the Secretary of the Notice No. 168 (82 FR 7753), published
ACTION: Temporary rule; delay of Treasury may by regulations prescribe in the Federal Register concurrently
compliance date. (26 U.S.C. 5368(b)). with the temporary rule. The temporary
TTB administers chapter 51 of the IRC rule, the notice of proposed rulemaking,
SUMMARY: This temporary rule delays and its implementing regulations and the comments regarding the
the compliance date of a wine labeling pursuant to section 1111(d) of the temporary regulations received in
requirement that was established by Homeland Security Act of 2002, response to the NPRM may be viewed
T.D. TTB–147, a temporary rule codified at 6 U.S.C. 531(d). In addition, in their entirety within Docket No.
published on January 23, 2017. In that the Secretary has delegated various TTB–2016–0014 at the Regulations
rule, TTB required the statement ‘‘Tax authorities through Treasury .gov Web site at https://
class 5041(b)(6)’’ to appear on the Department Order 120–01, dated www.regulations.gov/.
container of any wine for which the December 10, 2013 (superseding
hard cider tax rate is claimed if it is Current Requirement for Tax Class
Treasury Order 120–01, dated January
removed from wine premises or customs Statement To Appear on Containers of
24, 2003), to the TTB Administrator to
custody on or after January 1, 2018. This Wine Taxed at the Hard Cider Tax Rate
perform the functions and duties in the
temporary rule delays the compliance administration and enforcement of these In T.D. TTB–147, TTB amended its
date for that requirement by one year. laws. The TTB regulations that regulations in parts 24 and 27 to require
Specifically, the tax class statement implement the provisions of the IRC, as the statement ‘‘Tax class 5041(b)(6)’’ to
‘‘Tax Class 5041(b)(6)’’ will not be they relate to wine, include regulations appear on the container of any wine for
required to appear on containers of wine in 27 CFR part 24 for domestic wine and which the hard cider tax rate is claimed;
that are taxed at the hard cider tax rate 27 CFR part 27 for imported wine. see §§ 24.257(a)(4) and 27.59(b). In
until January 1, 2019. Through a notice issuing the temporary rule, TTB
of proposed rulemaking published PATH Act’s Modification of the IRC recognized that industry members who
elsewhere in this issue of the Federal Definition of Hard Cider produce and import hard cider would
Register, TTB is soliciting comments On December 18, 2015, the President need time to comply with this
from all interested parties on this delay signed into law the Consolidated requirement. Therefore, in
sradovich on DSK3GMQ082PROD with RULES

of the compliance date for the wine Appropriations Act, 2016 (Pub. L. 114– § 24.257(a)(4), TTB provided a one-year
labeling requirement, and, also in that 113). Division Q of this Act is titled the grace period before the tax class labeling
document, TTB is reopening for 60 days Protecting Americans from Tax Hikes requirement would go into effect, and,
the comment period for Notice No 168, Act of 2015 (PATH Act). Section 335(a) as set forth in T.D. TTB–147, this grace
the notice of proposed rulemaking that of the PATH Act amended the IRC at 26 period applies to products removed
published concurrently with T.D. TTB– U.S.C. 5041 by modifying the definition prior to January 1, 2018. As such, T.D.
147 on January 23, 2017. of ‘‘hard cider’’ for excise tax TTB–147 requires that for wine removed

VerDate Sep<11>2014 17:53 Dec 04, 2017 Jkt 244001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\05DER1.SGM 05DER1

57352 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Rules and Regulations

on or after January 1, 2018, the tax class 1, 2019, the requirement that the tax Regulatory Analysis and Notices
statement ‘‘Tax Class 5041(b)(6)’’ must class statement ‘‘Tax class 5041(b)(6)’’
Public Participation
appear on the container of any wine for appear on any container of wine
which the hard cider tax rate is claimed. removed from wine premises or customs To submit comments on the delayed
custody for which the hard cider tax compliance date for the hard cider tax
Requests for Delay of the Tax Class class labeling statement described in
rate is claimed. Because the tax class
Statement Compliance Date labeling requirement for imported wine this temporary rule, or to submit new
In response to the request for claiming the hard cider tax rate comments on any of the hard cider
comments on T.D. TTB–147, TTB contained in 27 CFR 27.59(b) is a cross- regulations contained in T.D. TTB–147,
received a comment, posted on February reference to § 24.257(a)(4), no change to published in the Federal Register on
15, 2017, from Ian Flom of Mercier the regulatory text in § 27.59(b) is January 23, 2017, at 82 FR 7653, please
Orchards, indicating that the timeframe required. refer to Notice No. 168A, published in
to implement the new ‘‘Tax Class the ‘‘Proposed Rules’’ section of this
5041(b)(6)’’ labeling statement Updating OMB Control Numbers
issue of the Federal Register.
requirement is insufficient because he In addition, TTB notes that, under the
requirements of the Paperwork Executive Order 12866
buys labels in bulk and has a supply of
labels that do not bear the tax class Reduction Act, the Office of Certain TTB regulations issued under
statement that he will not be able to use Management and Budget (OMB) the IRC, including this one, are exempt
up before January 1, 2018. Mr. Flom also approved the hard cider tax class from the requirements of Executive
submitted other comments for TTB labeling statement information Order 12866, as supplemented and
consideration. collection requirement under OMB reaffirmed by Executive Order 13563.
TTB also was copied on a letter control number 1513–0138. Therefore, Therefore, a regulatory impact
addressed to Steven T. Mnuchin, TTB is amending §§ 24.257 and 27.59 in assessment is not required.
Secretary of the Treasury, dated August this temporary rule to reflect that
control number. TTB also is correcting Regulatory Flexibility Act
1, 2017, from the United States
Association of Cider Makers (USACM), the OMB control number statement in In accordance with the Regulatory
which represents approximately one- § 24.257 to reflect that the IRC-based Flexibility Act (5 U.S.C. 601 et seq.),
half of the cider makers in the United wine labeling requirements are covered TTB certifies that this temporary rule
States. In its letter, USACM requested a under OMB control number 1513–0092, will not have a significant economic
one year delay of the requirement to Marks on Wine Containers, and not the impact on a substantial number of small
place the hard cider tax class labeling labeling-related recordkeeping entities. The temporary rule will not
statement on products claiming the hard requirements covered under 1513–0115, impose, or otherwise cause, a significant
cider tax rate removed from wine Usual and Customary Business Records increase in reporting, recordkeeping, or
premises or customs custody after Relating to Wine. other compliance burdens on a
January 1, 2018. substantial number of small entities.
Correction to Authority Citation for 27
In light of this comment and request, Rather, this temporary rule decreases
CFR Part 27
TTB is delaying the compliance date for burden on impacted entities by delaying
the labeling statement requirement. TTB notes that several rule the compliance date for a TTB labeling
documents published in late 2016 and requirement that implements certain
Requests for Extension of and early 2017 affected 27 CFR part 27, changes to the Internal Revenue Code of
Reopening of the Comment Period including the authority citation list set 1986 made by the Protecting Americans
In a February 23, 2017 comment in out at the beginning of that part. from Tax Hikes Act of 2015 (see Pub. L.
response to Notice No. 168, USACM Specifically, T.D. TTB–145, 114–113, Division Q, section 335).
formally requested a 60-day extension of Amendments To Streamline Importation
the public comment period in order to of Distilled Spirits, Wine, Beer, Malt Paperwork Reduction Act
give its members more time to properly Beverages, Tobacco Products, Processed The regulatory sections addressed in
address any of their concerns with the Tobacco, and Cigarette Papers and this temporary rule (27 CFR 24.257 and
regulatory changes. USACM referred to Tubes and Facilitate Use of the 27.59) contain collections of
the outstanding extension request in International Trade Data System, information that have been previously
their August 1, 2017 letter. published on December 22, 2016, at 81 reviewed and approved by OMB in
Through a notice of proposed FR 94186, revised the part 27 authority accordance with the Paperwork
rulemaking published elsewhere in this citation list to add 26 U.S.C. 5382 Reduction Act of 1995 (44 U.S.C. 3507)
issue of the Federal Register, TTB is (Cellar Treatment of Natural Wine) and and assigned control numbers 1513–
reopening for 60 days the comment 26 U.S.C. 6109 (Identifying Numbers). 0092 and 1513–0138. No changes are
period for Notice No 168. TTB will However, T.D. TTB–146, Changes to being made to the existing approved
consider any new comments submitted Certain Alcohol-Related Regulations information collections.
in response to the reopening of the Governing Bond Requirements and Tax
Return Filing Periods, published on Inapplicability of Prior Notice and
comment period on T.D. TTB–147 along
January 4, 2017, at 82 FR 1108, also Public Comment and Delayed Effective
with any comments received on this
revised the part 27 authority citation list Date Procedures
Temporary Rule, T.D. TTB–147A, and
the suggestions that have already been to add 26 U.S.C. 6109 but not 26 U.S.C. TTB is issuing this temporary rule
received from Mr. Flom. 5382, resulting in the inadvertent without prior notice and comment
sradovich on DSK3GMQ082PROD with RULES

removal of 26 U.S.C. 5382 from the list, pursuant to authority under section 4(a)
Delayed Compliance Date of the Tax and this error was not corrected in T.D. of the Administrative Procedure Act, as
Class Labeling Statement Requirement TTB–147. Therefore, in this temporary amended (APA; 5 U.S.C. 553(b)). This
for Hard Cider rule, TTB is correcting the authority provision authorizes an agency to issue
Through publication of this new citation for 27 CFR part 27 to return 26 a rule without prior notice and
temporary rule, TTB is amending 27 U.S.C. 5382 to that part’s list of comment when the agency for good
CFR 24.257(a)(4) to delay until January authorities. cause finds that those procedures are

VerDate Sep<11>2014 17:53 Dec 04, 2017 Jkt 244001 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\05DER1.SGM 05DER1

Document Created: 2017-12-04 23:45:25
Document Modified: 2017-12-04 23:45:25

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Temporary rule; delay of compliance date.
Dates		This temporary rule is effective December 5, 2017 through January 23, 2020.
Contact		Kara Fontaine, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; telephone (202) 453-1039 ext. 103.
FR Citation		82 FR 57351
RIN Number		1513-AC31
CFR Citation		27 CFR 24 27 CFR 27
CFR Associated		Administrative Practice and Procedure; Cider; Claims; Electronic Funds Transfers; Excise Taxes; Exports; Food Additives; Fruit Juices; Hard Cider; Labeling; Liquors; Packaging and Containers; Reporting and Recordkeeping Requirements; Research; Scientific Equipment; Spices and Flavorings; Surety Bonds; Vinegar; Warehouses; Wine; Alcohol and Alcoholic Beverages; Beer; Cosmetics; Customs Duties and Inspections; Imports and Reporting and Recordkeeping Requirements

82 FR 57351 - Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider; Delayed Compliance Date of the Hard Cider Tax Class Labeling Statement Requirement

DEPARTMENT OF THE TREASURYAlcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 82, Issue 232 (December 5, 2017)

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau