May 28, 2010
Greetings! We hope you are having a reputable and satisfying week! This week's edition includes information on our sampling and advertising program, as well as several resources for importers/wholesalers.
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 State Liaison (stateliaison@ttb.gov). |
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ALCOHOL BEVERAGE SAMPLING AND ADVERTISING PROGRAM
In 2008 TTB established two market-based sampling programs, the Alcohol Beverage Sampling Program and the Alcohol Beverage Advertising Program. Through these two programs, TTB determines the rate of compliance by the alcohol industry with Federal alcohol beverage laws and regulations regarding advertising, labeling, and product content on an annual basis. TTB will review each alcohol beverage commodity-distilled spirits, wine, and malt beverages-on a three-year cycle for comparison purposes.
It is each industry member's responsibility to comply with all labeling and advertising laws and regulations concerning its products as found in 27 CFR parts 4, 5, 7, and 16. TTB's sampling programs identify areas of non-compliance, and TTB raises awareness of these issues with regulated industry members so they may make any changes necessary to ensure that they are in compliance.
Sampling Program Methodology
Alcohol Beverage Sampling Program: Label and Content Review
For the Alcohol Beverage Sampling Program (ABSP), TTB obtains a list from an independent source that identifies domestic and imported distilled spirits products currently sold in the United States. We use a stratified random probability sampling process to identify products from this list for marketplace procurement, analysis, and evaluation. We apply standard descriptive statistical techniques to produce accurate estimates of compliance across the sampled commodity industry.
TTB reviews the label of each product purchased for the ABSP to ensure that it contains all legally required information and matches it to an approved certificate of label approval (COLA). TTB also tests each product to ensure that label information is accurate and that what is described on the label is what is actually inside the container. This allows TTB to determine if the product is correctly labeled.
Alcohol Beverage Advertising Program: Advertising Review
The Alcohol Beverage Advertising Program (ABAP) estimates overall advertising compliance by beverage type (i.e., distilled spirits, malt beverage, or wine) and media type (i.e., television, radio, print, internet other than paid ads, and outdoor) using basic statistical analysis of domestic producers' and importers' advertising selected through random stratified sampling procedures. An independent source provides a list of television, radio, print, and outdoor ads that recently appeared in the marketplace. This list serves as the sampling frame from which the ads for statistical analysis are randomly selected. A TTB database of industry members serves as the sampling frame from which industry members' websites are randomly selected for evaluation.
After deriving the samples from those two sources, TTB reviews all ads to determine their compliance with Federal regulations. Examples of the advertising information examined includes, but are not limited to: Name and address of the responsible advertiser; statements of class and type; distinctive designations or other statements that are inconsistent with applicable law and regulation or with approved product labels; statements that are false or misleading; statements, designs, or representations that are obscene or indecent; label depictions used in advertisements that are not approved product labels; depictions of the American flag; statements that make misleading curative, therapeutic, or other health related claims; incorrect statements of alcohol content; and references to carbohydrates, calories, fat, protein, and other macronutrient or "component" claims without a Statement of Average Analysis. We then apply widely-accepted statistical analysis procedures for producing accurate estimates of compliance across the sampled commodity industry.
On-Going Program and Follow-Up
When TTB finds violations of Federal alcohol beverage laws and regulations via these programs, TTB contacts the responsible industry member and take appropriate enforcement action, which may include permit action or action relating to additional tax liability. It is our goal that the sampling program results will improve our capability to more effectively target noncompliant industry members.
Questions
If you have any questions about the ABSP, please contact the TTB Market Compliance Office at one of the following addresses:
Mail: |
Alcohol and Tobacco Tax and Trade Bureau |
Phone: |
(202) 453-2250 or (866) 927-2533 (toll free number) and press "5." |
E-mail: |
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Fax: |
(202) 453-2873 |
IMPORTERS/WHOLESALERS RESOURCES
If you plan to purchase and sell alcohol at wholesale, or if you plan to import alcohol beverages, this section provides links to several TTB resources that can help you run a tax-and-trade compliant business.
Wholesaler Information Resources
- Laws and Regulations - More information about the Code of Federal Regulations and public laws relating to wholesalers and importers.
- Applying for a Permit - If you plan to purchase and sell alcohol at wholesale, or if you plan to import alcohol beverages, you must first obtain a Basic Permit from TTB.
- Direct Shipping - Industry members who engage in direct shipping are responsible for remaining in compliance with current State rules.
Importation Information Resources
- U.S. Requirements for Importing Alcohol Beverages - More information about all requirements that must be met to import alcohol beverages into the United States.
- Importing Alcohol for Personal Use - All you need to know concerning how imported alcohol beverage products are classified for personal use.
Exportation Information Resources
- Exporting Alcohol Beverages - Frequently asked questions concerning Federal requirements for the exportation of wine.
Additional Guidance
- Industry Circulars - Keep up-to-date with information concerning TTB-regulated industry.
- Retention of COLAs by Alcohol Wholesalers - TTB guidance for retention of COLAs by alcohol wholesalers.
- Frequently Requested Listings - TTB is required to make available to the public records that are requested and released on a frequent basis. We have provided links to listings of alcohol industry members who hold permits under the Federal Alcohol Administration Act.