Industry Circular

Number: 67-7
Date: July 12, 1967

Office of the Commissioner of Internal Revenue Alcohol and Tobacco Tax Division

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NOTICE OF PROPOSED RULE MAKING 27 CFR Part 5 Proprietors of Distilled Spirits Plants, Importers and Wholesalers of Distilled Spirits, Cooperage Industry, and others concerned: Industry Circular No. 67-3, dated April 21, 1967, advised you that hearings would be held on industry proposals to amend the regulations covering the labeling of domestic whiskies, particularly as affected by cooperage. These hearings will begin on September 18, 1967. This circular is issued to pro- vide you with a reprint of the proposed rule making which was published in the Federal Register for July 11, 1967. - - - - - (27 CFR Part 5)

LABELING AND ADVERTISING OF DISTILLED SPIRITS

NOTICE OF HEARING ON PETITIONS PROPOSING CHANGES IN REGULATIONS

Notice is hereby given, pursuant to the provisions of section 5 of the Federal Alcohol Administration Act (49 Stat. 981 as amended; 27 U.S.C. 205), of a public hearing to begin at 9:30 A.M. (EDT)

On Monday, September 18, 1967, in the Auditorium of the Museum of Natural History, 10th Street and Constitution Avenue, N.W., Washington, D. C. at which time and place all interested parties will be afforded opportunity to be heard, in person or by authorized representative, concerning the petitions for regulatory changes in 27 CFR Part 5 as stated below.

PETITIONS 1. Petitioner: The American Distilling Company 150 East Forty-Second Street New York, New York 10017 Petition: a. To add a new standard of identity for a whisky which has been distilled at more than 160° proof but at less than 190° proof, aged in oak barrels seasoned by prior use, and to permit such whisky to bear a conventional age statement. 2. Petitioner: The Associated Cooperage Industries of

America, Inc.
408 Olive Street
St. Louis, Missouri 63102

Petition: a. To provide a maximum limit of 53 wine gallons on the size of new white oak barrels used for the aging of domestic whiskies.

Remarks: Persons desiring to testify on this proposal should be prepared to discuss the effect of barrel size on the aging of whisky, and, if the testimony is directed at barrels of a particular size, the relative effect of that size on age should be covered. Persons who support large size containers provided pieces of charred oak wood can be inserted into the containers to correct or minimize deficien- cies resulting from the large size of the container, should submit evidence:

(1) as to the effect of aging whisky in this manner;

(2) as to any differences from aging whisky in barrels to which wood chips have been added; and

(3) as to whether the insertion of pieces of charred oak wood into the containers should be required to be disclosed on the label. 3. Petitioner: Grosscurth Distillers, Inc.
Echo Trail Road
Anchorage, Kentucky 40001

Petition:

a. To redefine "bourbon whisky," "rye whisky," "wheat whisky," "malt whisky," or "rye malt whisky," as whisky which has been distilled from a fermented mash of not less than 51 percent corn grain, rye grain, wheat grain, malted barley grain, or malted rye grain, respectively, and stored in any type of charred white oak container, new or used.

b. To eliminate the requirement that domestically produced whiskies (other than corn) aged in reused cooperage bear a statement to the effect that they have been stored in reused cooperage.

c. To permit the normal age claim for domestic whiskies aged in reused cooperage.

d. To eliminate the maximum distillation proofs prescribed for whisky and American type whiskies respectively, which presently are as follows: (1) Less than 190° proof for the class whisky, and (2) 160° proof or less for American type whiskies.

4. Petitioner: Publicker Industries, Inc. 1429 Walnut Street Philadelphia, Pennsylvania 19102 Petition: a. To redefine "bourbon whisky," "rye whisky," "wheat whisky," "malt whisky," or "rye malt whisky" as whisky which has been distilled at less than 190° proof from a fer- mented mash of not less than 51 percent corn grain, rye grain, wheat grain, malted barley grain, or malted rye grain, respectively, and stored in any type of charred white oak container, new or used. b. To eliminate the requirement that domestically produced whiskies (other than corn) aged in reused cooperage bear a statement to the effect that they have been stored in reused cooperage, and to permit the normal age statement for domestic whiskies aged in reused cooperage. c. To provide that any mixture of one type of straight whisky be designated as "straight (appropriate type) whisky" instead of "a blend of straight (appropriate type) whiskies." d. To provide that any mixture of different types of straight whiskies be designated as "straight whisky" instead of "a blend of straight whiskies."

e. To provide that all domestically produced whiskies must be aged a minimum of four years before bottling.

f. To eliminate the present maximum proof (125°) at which whiskies may be stored.

5. Petitioner: Schenley Industries, Inc.

1290 Avenue of the Americas

New York, New York 10019

Petition:

a. To eliminate the requirement that domestically produced whiskies (other than corn) aged in reused cooperage bear a statement to the effect that they have been stored in reused cooperage and to permit the normal age statement for domestic whiskies aged in reused cooperage.

b. To redefine "bourbon whisky," "rye whisky," "wheat whisky," "malt whisky," or "rye malt whisky" as whisky which, without limitation as to distillation or entry proof, has been distilled from a fermented mash of not less than 51 percent corn grain, rye grain, wheat grain, malted barley grain, or malted rye grain, respectively, and stored in any type of charred white oak container, new or used.

c. To provide that all domestically produced whiskies must be aged a minimum of two years before bottling.

d. To provide that regulatory changes in respect to the labeling of any whisky or other distilled spirits shall not apply to products produced before the date of the publica- tion of the new regulations in final form; nor to products produced after said date if bottled in less than six years from the date of publication.

6. Petitioner: Joseph E. Seagram & Sons, Inc.
375 Park Avenue
New York, New York 10022

Petition:

a. To amend the standards of identity with respect to distilled spirits distilled at or above 190° proof from a fermented mash of grain to provide that such distilled spirits, when stored in reused cooperage for not less than 2 years, be designated "grain spirits" in lieu of "neutral spirits" with the required statement as to the commodity from which distilled.

b. To provide that spirits distilled at or above 190° proof from a fermented mash of grain and placed in reused cooperage for a minimum of 2 years be permitted to claim age for the period of storage in reused cooperage.

TESTIMONY

In the interest of orderly procedure the subjects raised by the petitions will be heard separately and in the order set forth below:

REQUESTS TO PRESENT ORAL TESTIMONY

All persons who desire to present oral testimony should so advise the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington, D. C., 20224, not later than Friday, September 8, 1967. Requests shall be submitted in an original and three copies and must include

(1) the name and address of the party submitting the request,

(2) the name and address of the person or persons who will present oral testimony,

(3) identification of the subject or subjects to which the testimony will be directed, and

(4) the approximate length of time desired for the presentation of testimony on each subject.

SUBMISSION OF WRITTEN MATERIAL Any interested party may submit to the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington, D. C., 20224, in an original and nine copies, relevant and material written data, views or arguments for incorporation into the record of hearing. The subject to which the comments are directed must be specifically identified. Written material must be received not later than Wednesday, September 13, 1967, At the conclusion of the hearing a reasonable time will be afforded interested parties for examination of the record and submission of written arguments and briefs. Inquiries concerning this circular should refer to its number and be addressed to the Director, Alcohol and Tobacco Tax Division (Attention: CP:AT:JHL), Washington, D.C. 20224.

Harold A. Serr

Director, Alcohol and Tobacco Tax Division