DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Industry Circular

Number: 2010-5

Date: May 3, 2010

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Pinot Noir from the Languedoc-Roussillon Region of France

To: Bonded Wineries, Bonded Wine Cellars, Taxpaid Wine Bottling Houses,
Importers, Wholesalers, and Others Concerned

1. Purpose. 

   This circular serves as notice that beginning on May 3, 2010, for all bottled or bulk wine from the Languedoc-Roussillon region of France covered by a Certificate of Label Approval (COLA) naming pinot noir as the single grape varietal and an appellation of origin in the Languedoc-Roussillon region of France, all proprietors importing such wine in bottles or bottling and labeling such wine which was imported in bulk must obtain a declaration from the Government of France stating that:

1. The wine was produced from at least the minimum percentage of wine derived from pinot noir grapes as required by French law for the labeled appellation of origin;
   
   
2. The wine was produced from at least the minimum percentage of wine derived from pinot noir grapes grown in the labeled appellation of origin as required by French law for the labeled appellation of origin; and
   
   
3. The wine otherwise conforms to the requirements of the French laws and regulations governing its composition, method of production, and designation.
2. Authority.

   Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe regulations for the labeling of wine, distilled spirits, and malt beverages.  The FAA Act requires that these regulations, among other things, prohibit consumer deception and the use of misleading statements on labels, and ensure that labels provide the consumer with adequate information as to the identity and quality of the product.  The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the regulations promulgated under the FAA Act.

   Part 4 of the TTB regulations (27 CFR part 4) allows for the labeling of wine with grape varietals and with appellations of origin.  Under 27 CFR 4.23, the name of one or more grape varietals may be used as the type designation if the wine is also labeled with an appellation of origin.  Under 27 CFR 4.25(b)(2)(ii) and 4.25(e)(3)(iii), foreign wine imported into the United States must also conform to the requirements of the foreign laws and regulations governing the composition, method of production, and designation of wines available for consumption within the country of origin. 

3. Background.

   Under TTB’s regulations, wine must meet certain standards in order to be labeled with certain information like grape varietal, appellation of origin, or vintage date.  In the case of imported wine labeled with foreign appellations of origin, TTB’s regulations require that the wine conforms to the laws and regulations of the country of origin.  These regulations are in place to ensure that labels provide consumers with adequate information as to the identity and quality of the product. 

   As stated in part 2 of this circular, wine labeled with one or more grape varietals must also be labeled with an appellation of origin.  Wine labeled with a foreign appellation of origin must comply with the requirements of the foreign country’s laws and regulations governing its composition, method of production, and designation, which includes standards relating to grape varietals and wine derived from grapes grown in the labeled appellation of origin area.

   Vin de pays d’Oc, Vin de pays de l’Aude, Vin de pays du Gard, Vin de pays de l’Hérault, and Vin de pays des Pyrenées-Orientales are appellations for wine from the Languedoc-Roussillon region of southern France.  Vin de pays d’Oc is a regional appellation which encompasses four départmental appellations:  Vin de pays de l’Aude, Vin de pays du Gard, Vin de pays d’Hérault, and Vin de pays des Pyrenées-Orientales.  The name of the Vin de pays d’Oc, Vin de pays de l’Aude, and Vin de pays d’Hérault appellations can be expressed in several variations which are listed in Annex 1.

   TTB obtained information from French authorities about investigations of wine producers and merchants in the Languedoc-Roussillon region of France who were suspected of selling wine as pinot noir when the wine was produced from merlot and syrah grapes.  The investigation resulted in criminal charges of fraud, and at the conclusion of the subsequent court case, the judge sentenced the guilty parties to jail sentences and ordered the guilty parties to pay fines up to 180,000 Euros. 

   TTB will also be undertaking domestic investigations into the marketing of mislabeled pinot noir in the U.S. marketplace.

4. Discussion.

   To help ensure the integrity of imported wines in the U.S. marketplace, beginning on May 3, 2010, for all bottled or bulk wine from the Languedoc-Roussillon region of France covered by a Certificate of Label Approval (COLA) naming pinot noir as the single grape varietal and an appellation of origin in the Languedoc-Roussillon region of France, all proprietors importing such wine in bottles or bottling and labeling such wine which was imported in bulk must obtain a declaration from the Government of France which:

   1. States that the wine was produced from at least the minimum percentage of wine derived from pinot noir grapes as required by French law for the labeled appellation of origin;
      
      
   2. States that the wine was produced from at least the minimum percentage of wine derived from pinot noir grapes grown in the labeled appellation of origin as required by French law for the labeled appellation of origin;
      
      
   3. States that the wine conforms to the requirements of the French laws and regulations governing its composition, method of production, and designation;
      
      
   4. Provides the basis on which the certifying French Government agency is certifying the wine;
      
      
   5. Includes the name and address of the producer;
      
      
   6. Includes the brand name, appellation of origin name, and vintage date, if any;
      
      
   7. Appears on French Government Agency letterhead;
      
      
   8. Is signed and dated by a French Government official; and
      
      
   9. Is in English, or, if in French, is accompanied by an English translation.

   In the case of wine imported in bottles, proprietors must have the declaration in their possession at the time of release of any of these wines from United States Customs and Border Protection (CBP) custody.  However, importers should note that they do not need to present the declaration as part of the CBP entry process.  Importers in receipt of shipments on or after May 3, 2010 which were shipped to the United States prior to that date and for which documentary evidence of a shipping date before May 3, 2010 exists must obtain a declaration for the wine within 30 days from the date of release from customs custody.  

   In the case of wine imported in bulk, proprietors must have the declaration in their possession at the time of bottling and labeling the wine with a French appellation of origin.  This includes wine that has already been imported into the United States, but has not yet been bottled.  Proprietors are reminded that if imported bulk wine is to be blended after arrival in the United States, after blending, the wine must continue to meet French requirements including those for minimum percentage of pinot noir and wine derived from grapes grown in the labeled appellation of origin area if it is labeled with a French appellation of origin.

   For existing bottled inventory held by the importer or bottler of such wine labeled as pinot noir and naming a French appellation of origin, the importer or bottler must obtain the declaration within 30 days of May 3, 2010.

   Proprietors must maintain the original or a copy of the required declaration at the business’s premises.  Note that proprietors will need only one declaration to cover multiple shipments for each brand name, appellation of origin, vintage date, if any, and producer, as long as these conditions are the same. 

   TTB cautions importers, wholesalers, bonded wineries, and bonded wine cellars that the marketing of a mislabeled wine is unlawful under the FAA Act.  Where TTB finds a willful violation of the FAA Act, TTB may take appropriate action which could include suspension or revocation of a permit.   

5. Questions.
   
   If you have any questions concerning this circular, please contact the International Trade Division (ITD) at (202) 453-2260 or itd@ttb.gov.

John J. Manfreda
Administrator
Alcohol and Tobacco Tax and Trade Bureau

Attachment:

Government of France Pinot Noir Declaration (Template)

Annex 1

The complete list of appellation of origin names covered by this industry circular is as follows:

Furthermore, the letters “IGP” (Indication Géographique Protégée) can be replaced in any of the above options with the IGP logo.