September 18, 2002

Dear Industry Member:

On July 29, 2002, the Alcohol Labeling and Formulation Division (ALFD) made available information regarding the upcoming implementation of the National Organic Program (NOP) regulations at 7 CFR Part 205. These regulations are being implemented by the United States Department of Agriculture (USDA) and provide for standardization of organic references and give the federal government authority over the production, handling, labeling and marketing of organic products. While ATF has had no direct involvement in the implementation of these regulations, the Bureau has been working closely with USDA to identify issues specific to the labeling of alcohol beverages. One of these issues was recently the topic of a USDA decision.

Until recently, the NOP regulations were interpreted in such a way that required all products labeled with an organic claim to be labeled according to the new requirements after October 21, 2002. In accordance with this interpretation, ATF has been approving all Certificates of Label Approval (COLAs) with an organic claim with an expiration date of October 21, 2002. On September 12, 2002, however, USDA released a decision that offers a new interpretation. A copy of this decision accompanies this letter. In short, USDA now interprets the regulations to allow products that were either made with ingredients grown before receiving NOP certification, or that were produced before NOP certification, to continue to use non-NOP compliant labeling after October 21, 2002.

If you wish to continue to use labels for organic products that expire on October 21, 2002, please do the following:

• Submit a copy of the original COLA to ALFD.
  
• Submit a new COLA application (in duplicate) with labels identical to the original COLA.
  
• Submit a statement declaring the labels will be used on organic products that were produced or made with ingredients that were grown prior to receiving NOP certification.
  
• Submit a copy of the organic certification that was in effect for the referenced product.

New COLAs will be given an expiration date of October 21, 2003 unless you specifically request additional time. If you need more than a year to deplete the supply of this product, please submit a letter along with the above information requesting a specific expiration date. Please note that all labels for products made after receiving NOP certification must comply with NOP labeling requirements.

Should you have any questions related specifically to the NOP or to this decision, you are invited to contact the USDA at (202) 720-3252 or to visit their website at www.ams.usda.gov/nop. ATF will continue to work with USDA to ensure that the alcohol beverage industry is provided with the most up-to-date and complete information about these evolving issues. Should you have any questions about ATF's role as it relates to the labeling of organic alcohol beverages, you are welcome to contact Rick Evanchec at (202) 927-8128. All written material concerning this issue should also be sent to his attention. Please sent this information to: Bureau of Alcohol, Tobacco & Firearms, Alcohol Labeling and Formulation Division, Room 5200, 650 Massachusetts Avenue, NW, Washington, DC 20226.

Sincerely yours,

Susan Stewart
Chief, Alcohol Labeling and Formulation Division

Enclosure:

• http://www.ams.usda.gov/nop/NOP/PolicyStatements/StreamofCommerce.html