Greetings! We hope you are having a prosperous and celebratory week! This edition includes information about three rulemaking documents recently published in the Federal Register, COLAs Online enhancements, and information pertaining to a change in proprietorship/control of a distilled spirit plant.
In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce. Please send any questions and/or comments to Executive Liaison for Industry Matters (IndustryLiaison@ttb.gov) and/or (StateLiaison@ttb.gov). |
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Three Rulemaking Documents published in the federal register
Revision of American Viticultural Area Regulations
In this Treasury decision, TTB amends the regulations concerning the establishment of American viticultural areas (AVAs). The changes provide clearer regulatory standards for the establishment of AVAs and clarify the rules for preparing, submitting, and processing viticultural area petitions.
This final rule is effective on February 22, 2011. Read the Final Rule.
Proposed Addition of New Grape Variety Names for American Wines
TTB proposes to amend part 4 of its regulations by adding more than 50 new names to the list of grape variety names approved for use in designating American wines. In addition, TTB proposes to include separate entries for synonyms of existing entries so that readers can more readily find them, and to correct one existing entry (Agawam).
TTB must receive written comments on or before March 21, 2011. Read the Proposed Regulations.
Time for Payment of Certain Excise Taxes, and Quarterly Excise Tax Payments for Small Alcohol Excise Taxpayers
This temporary rule updates and reissues TTB regulations pertaining to the semimonthly payments of excise tax on distilled spirits, wine, beer, tobacco products, and cigarette papers and tubes, and also reissues temporary regulations regarding quarterly payment of excise tax for small alcohol excise taxpayers. The temporary regulations adopted in this document replace temporary regulations issued under T.D. ATF-365 and T.D. TTB-41, which were originally published in 1995 and 2006, respectively. In addition, TTB is soliciting comments from all interested parties on these regulatory provisions through a notice of proposed rulemaking.
This temporary rule is effective on February 22, 2011, through February 24, 2014.
TTB must receive written comments on the Notice of Proposed Rulemaking on or before March 21, 2011.
Read the Temporary Rule. | Read the Proposed Regulations.
COLAs ONLINE ENHANCEMENTS
Did you know that as of December 31st, 85 percent of the Certificates of Label Approval (COLAs) issued by TTB are submitted and processed via our web based system, COLAs Online? If you are required to obtain COLAs and you aren't already registered to use COLAs Online what are you waiting for?
We recently upgraded COLAs Online to improve functionality and your online experience. The following enhancements are included in Version 3.4 of COLAs Online, which was released on January 10, 2011:
TTB Online Portal Access - Authenticated users may now log on to COLAs Online or Formulas Online from the same main page: TTB Online Portal. (Remember, you have to register if you want access to Formulas Online).
Update My Profile - COLAs Online users may now set authentication questions and answers, as well as modify your user registration, on the My Profile page. These authentication questions allow COLAs Online users to set your own password, even if you have forgotten it, without contacting the TTB Help Desk for assistance.
Create a New User Registration - People interested in registering to use COLAs Online may now submit the registration request form electronically. Existing COLAs Online users may also now Modify User Registration to make changes to your account, for example to add or delete permits or to modify a user's role.
Activate a User ID - Once TTB processes your registration and notifies you of your user ID, new COLAs Online users may now activate your own user ID.
Set New or Forgotten Password - COLAs Online users may now set new or forgotten passwords yourselves. Existing COLAs Online users must Update Your Profile to set authentication questions and answers in order to use this feature.
Formulas Online - There is a new Formulas Online menu option that allows COLAs Online users who also have registered to use Formulas Online to jump to that system.
If you have questions about COLAs Online contact alfd@ttb.gov
IS IT A CHANGE IN PROPRIETORSHIP OR A CHANGE IN CONTROL? - DISTILLED SPIRITS PLANTS (DSP)
Changes with respect to the information shown on the previously submitted registration, permit application, or applicable bond, must be filed with the Alcohol and Tobacco Tax and Trade Bureau's (TTB) National Revenue Center in Cincinnati, Ohio.
CHANGE IN PROPRIETORSHIP
A change in proprietorship occurs when there is a change in the entity which owns and operates the business. It is synonymous with change in ownership, or it may be due to a change of entity type (for example a change from sole proprietor to LLC; from a partnership to a corporation, etc.). Either way, the entity which owned the business no longer operates or owns the operations at that location.
The Internal Revenue Code (IRC) provides that no individual, firm, partnership, corporation, or association, shall commence or continue the business of a distiller, warehouseman, or processor until all bonds required have been approved.
In addition, the IRC and corresponding regulations require the successor DSP to qualify in the same manner as the proprietor of a new distilled spirits plant, before commencing or continuing business. To ensure continuity of operations, all conditions and/or requirements of Federal laws and regulations must be met; therefore, it is imperative that the plant registration, bond, and other qualifying documents be filed well in advance of the proposed effective date of the change.
With respect to permit provisions, a successor owner may continue to operate, if within 30 days of the change, an application is filed for a new permit. In that case, the outstanding basic permit and/or operating permit will remain in effect until such time as TTB takes final action on the new application(s).
If a change in proprietorship occurs prior to the filing and approval of the new registration and bond, or if the permit application is not filed within the required 30-day period, all regulated operations must cease until approval is granted in writing by the TTB. Failure to do so will result in automatic termination of the predecessor's permit and possible adverse action or significant tax consequences.
CHANGE IN CONTROL
A change in actual or legal control occurs when there are changes in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the subject business. In other words, the same legal entity remains in existence which continues to operate the business in question.
Federal regulations require an amended registration, TTB Form 5110.41, to be submitted within 30 days of the change. The registration should show the next sequential serial number and describe the change of stock or interest ownership, or any major changes in the officers or directors which could result in a change in the actual control of the corporation.
An Operating Permit issued under the IRC, or a Basic Permit issued under the FAA Act, is not transferable by reason of a change in actual or legal control of the company. The proprietor's permit(s) will automatic terminate unless within 30 days of the change an application for new permit is filed with TTB. If an application is filed within the required 30-day period, the outstanding permit(s) will remain in effect until TTB takes final action on the new application.
In addition, if a new LLC member or stockholder holds more than 10 percent stock or interest, and is not already on record, a Personnel Questionnaire, TTB Form 5000.9, must be filed.