TTB Archives - Page 3 of 21 - ALCOHOL LAW ADVISOR

Federal Alcohol Excise Taxes 101

by McDermott Will & Emery | Jan 2, 2020 | Alcohol Excise Taxes, Legislation

There are many laws at both the federal and state level that govern the production and distribution of distilled spirits. For example, craft distillers must comply with licensing and permitting requirements, trade practice laws, advertising restrictions, and, depending on the jurisdiction, alcohol franchise law. One of the most fundamental—and most complex—areas of law governing distilled spirits is excise taxes.

An article authored by McDermott’s Bethany K. Hatef in the Winter 2020 issue of Artisan Spirit Magazine provides a high-level overview of the federal alcohol excise tax system and some specific features that apply to distilled spirits, and also explains the current status of the Craft Beverage Modernization Act, the legislation temporarily providing for reduced tax rates for certain amounts of distilled spirits.

Access the full article.

Originally published in Artisan Spirit Magazine: Winter 2020.

Court Dismisses Challenge to TTB’s Rejection of Health Claims on Vodka

by McDermott Will & Emery | Sep 5, 2019 | Advertising and Marketing, Food Safety and FDA, TTB COLAs and Formulas

In August, the US District Court for the District of Columbia issued its final decision in Bellion Spirits, LLC v. United States, Civ. No. 17-2538 (JEB). The Bellion case was brought by spirits company Bellion Spirits after the Alcohol and Tobacco Tax and Trade Bureau (TTB) refused to approve a series of health claims advanced by Bellion in connection with its vodka products. According to Bellion, the infusion of its vodka with a compound called NTX will mitigate the damage alcohol inflicts on human DNA. (more…)

TTB Label Approval System Survives First Amendment Challenge from DC Brewery

by Daniel P. McGuire | Aug 20, 2019 | TTB COLAs and Formulas

I. Factual Background

During the 34-day government shutdown occurring between December 2018 and January 2019, producers and importers of beer, wine and distilled spirits needing label approval to bring new products to market were forced to wait until the shutdown was resolved, when TTB could begin again to process COLA applications. The difficulties presented by this situation included the prospect of needing to destroy valuable, perishable inventory.

Unable to obtain a COLA due to the shutdown, Atlas Brew Works (Atlas) filed suit in January in the US District Court for the District of Columbia, challenging the constitutionality of the COLA system. Atlas alleged that the requirement to obtain label approval violates the First Amendment, since, in the event of a government shutdown, the COLA requirement amounted to a prior restraint on protected speech. As the court explained in its opinion, Atlas’s argument boiled down to the claim that “a law that prohibits speech without regulatory approval becomes an outright ban on speech when the approval process is shuttered.” Shortly after the case was filed, the shutdown ended and Atlas received its COLA. The government asked the court to dismiss the case, arguing that it was now moot. After giving the parties several months in which to brief the issue, the court ruled in favor of the government’s motion, finding Atlas’s case moot. (more…)

TTB Publishes New Nonbeverage Product Formula Form

by T. Marshall Fawley III and McDermott Will & Emery | Aug 19, 2019 | Alcohol Excise Taxes, Non-Beverage Alcohol, TTB COLAs and Formulas

On August 12, 2019, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published its updated Formula and Process for Nonbeverage Product, TTB Form 5154.1. The Nonbeverage Product approval process is critical to obtain “drawback” (a refund) on most of the alcohol excise tax on distilled spirits used to make such products deemed “unfit for beverage purposes.” The Nonbeverage Formula Form accordingly is important to producers of flavorings and extracts, soft drink concentrates and other non-beverage products made using potable alcohol. (more…)

Cannabis and Hemp Update

by Noah Feldman Greene and McDermott Will & Emery | Jul 29, 2019 | Cannabis, Distribution, Food Safety and FDA, TTB COLAs and Formulas

Cannabis legalization receives widespread popular support. According to opinion polls, more than two-thirds of Americans support full legalization—a steep rise in support considering that as recently as 2005, almost two-thirds of Americans opposed legalization. The country appears on the path to full cannabis legalization, but until that time, citizens and companies should be aware of the legal risks involved in entering the cannabis space.

Access the full article.

Originally published in The New Brewer, July/August 2019.

TTB Publishes NPRMs to Repeal Standards of Fill for Wine and Distilled Spirits

by McDermott Will & Emery | Jul 3, 2019 | Alcohol Excise Taxes, TTB COLAs and Formulas

On Monday, July 1, 2019, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published two eagerly anticipated notices of proposed rulemaking (NPRMs) to largely repeal the standards of fill for wine and distilled spirits containers. The highlights: (more…)

24th Annual Wine, Beer & Spirits Law Conference

by McDermott Will & Emery | Jun 6, 2019 | Uncategorized

On September 16–17, CLE International will host the 24rd Annual Wine, Beer & Spirits Law Conference in Charlotte, North Carolina. Those attending will include the alcohol beverage industry’s leading practitioners, including in-house counsel for producers, distributors and retailers, as well as industry lawyers and state administrators. Conference topics include:

Updates on TTB developments and trends
An overview of recent developments in alcohol trade practice and trademark law
The significance of regulatory compliance, and the state of data security and ownership
Updates on the cannabis industry, including the latest legalization efforts and how it could affect the alcohol beverage industry

McDermott partner Marc Sorini serves as co-chair for the event and will also present. Other McDermott presenters will be Michael Kimberly and Anthony DeMaio.

Click here for the full agenda and registration information.

Winds of Change Blowing for Craft Brewers

by Arthur J. DeCelle and McDermott Will & Emery | May 29, 2019 | Advertising and Marketing, Alcohol Excise Taxes, Distribution, Food Safety and FDA, Import/Export, Legislation, Trade Practices, TTB COLAs and Formulas

For those who follow developments in the law and craft brewing with equal passion, every year has its share of substantial issues. This year has been no exception, with a pending Supreme Court case; a substantial upswing in federal trade practice enforcement activity; a massive rewrite of US Tax and Trade Bureau (TTB) labeling and advertising regulations; and prospects for extending the biggest cuts in the excise tax on beer since the repeal of Prohibition.

As these developments play out over the next year, we may see changes translate into the marketplace. Find out what you can expect.

Access the full article.

Originally published in The New Brewer, May/June 2019.

TTB Spring 2019 Updates to Semi-Annual Regulatory Agenda

by McDermott Will & Emery | May 28, 2019 | Advertising and Marketing, Alcohol Excise Taxes, Legislation, Trade Practices, TTB COLAs and Formulas

The spring edition of the federal government’s semi-annual Unified Agenda of Federal Regulatory and Deregulatory Actions (Regulatory Agenda) has been published. Like other federal agencies, the Alcohol and Tobacco Tax and Trade Bureau (TTB) uses the Regulatory Agenda to report on its current rulemaking projects.

The Regulatory Agenda provides glimpses into TTB’s policy focus and aspirations. But, readers should recognize that TTB rulemaking moves very slowly, and the Agency often does not meet the aspirational dates published in the Regulatory Agenda. (more…)

TTB’s Take on Alcohol Beverages Infused with Cannabidiol

by McDermott Will & Emery | Apr 29, 2019 | Cannabis, Food Safety and FDA

On April 25, 2019, TTB published Industry Circular 2019-1. It addresses the hot topic of alcohol beverages (especially beer) infused with hemp-derived ingredients–with cannabidiol (CBD) as the clear focus of industry interest. While hardly surprising, the Industry Circular takes or reiterates the following positions:

TTB will require a formula for any product containing a hemp-derived ingredient
TTB will not approve a formula for any product containing a Schedule I controlled substance under the Controlled Substances Act
TTB will not approve a formula for any product containing CBD until FDA changes its current position towards CBD as a food ingredient. FDA currently views interstate commerce in any food containing CBD as a violation of the federal Food, Drug & Cosmetic Act
TTB will continue to approve formulas for alcohol beverages containing ingredients derived from hemp seeds and hemp oil
TTB will not approve a formula for any product containing a hemp ingredient other than those derived from hemp seeds or oil unless it also receives adequate evidence that FDA deems the ingredient generally recognized as safe (GRAS) for food

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