NEED FOR REVIEW OF APPROVED FORMULAS
COVERING DISTILLED SPIRITS PRODUCTS.
Proprietors of Distilled Spirits Plants
and Bonded Wine Cellars; Nonbeverage
Drawback Establishments, and others
concerned:
Purpose. The purpose of this Circular is to remind proprietors
of distilled spirits plants and bonded wine cellars of their responsibilities for seeing to it that the various extracts, essences,
oils, blending agents and adjuncts, etc., used in their production
of distilled spirits and wine products, are not prohibited for use
in food products by the Food and Drug Administration; and that their
products, when labeled, conform to the labeling requirements of the
Federal Alcohol Administration Act.
Proprietor's Examination of Approved Formulas:
Proprietors of distilled spirits plants engaged in the
rectification and bottling of distilled spirits products, and
proprietors of bonded wine cellars engaged in the production of
special natural wines, are urged to carefully examine all of their
previously approved formulas (on 27-B Supplemental or 698 Supplemental, as the case may be) to assure themselves that none of the
ingredients employed in their processes for coloring or flavoring
purposes, or as blending adjuncts, are prohibited for use in food
products under laws and regulations administered by the Food and
Drug Administration of the Department of Health, Education and
Welfare. In doing so, proprietors may wish to communicate with
their suppliers of extracts, essences, oils, colors, or blending
adjuncts, etc., and obtain assurances that these materials are
properly described as "natural" or "imitation" (as the case may be)
and contain no ingredients proscribed, under regulations issued by
the Food and Drug Administration.
If an existing formula (on 27-B or 698 Supplemental) is found
deficient in adequately identifying the source and the nature of the
flavoring, coloring, or blending adjuncts contained therein, the
proprietor of the distilled spirits plant, or the bonded wine cellar,
should submit a new superseding formula (or a rider to the existing
formula), for approval, for the purpose of clearly identifying each
ingredient by name and, if purchased, by the name of the extract
manufacturer and the number of the manufacturer's approval formula
for drawback of tax (care should be exercised not to identify the
ingredient by the manufacturer's catalogue number). In addition,
the proprietor of the distilled spirits plant, or bonded wine
cellar, should state whether each such ingredient is "natural" or
"imitation".
Approval of Formulas and Labels no waiver of other Federal Laws:
Proprietors are warned (1) that the approval of formulas by
the Internal Revenue Service, under the provisions of the Internal
Revenue Code and regulations, does not authorize the use of materials
or ingredients prohibited by other Federal laws or regulations;
(2) that the issuance of certificates of label approval under the
Federal Alcohol Administration Act, authorizing the use of labels
on products made in accordance with such approved formulas, does not
waive their responsibilities to observe the laws and regulations
administered by the Food and Drug Administration; and (3) that they
should be prepared to submit proof that all ingredients in their
products are acceptable under the Federal Food and Drug regulations
and regulations issued under the Federal Alcohol Administration Act.
Inquiries. Inquiries in connection with this Industry Circular
should be addressed to the Director, Alcohol and Tobacco Tax Division
Internal Revenue Service, Washington 25, D. C., Attention: CP:AT:P,
if in relation to formulas; or Attention: CP:AT:B, if in relation
to certificates of label approval.
In any such inquiries relating to the use of materials on
which drawback of internal revenue tax has been claimed by the manufacturer, reference should be made to the number of the approved
formula of the extract manufacturer and not to the manufacturer's
catalogue number of the product.

Dwight E. Avis
Director, Alcohol and Tobacco Tax Division |