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TTB NEWSLETTER | Weekly News

May 25, 2018


IN THIS ISSUE

Greetings! This week's top news includes publication of additional information and clarification of our hemp policy, availability of new CBMTRA wine-related FAQs, and information about how to apply to work at TTB as an excise tax auditor.

TTB ISSUES NEW FAQ THAT CLARIFIES OUR HEMP POLICY

We recently published new information that clarifies our position on the use of controlled substances, including marijuana, in alcohol beverages.  The information was published as frequently asked question (FAQ) A29:

Will TTB approve any formulas or labels for alcohol beverage products that contain a controlled substance under Federal law, including marijuana?

TTB will not approve any formulas or labels for alcohol beverage products that contain a controlled substance under Federal law, including marijuana. The Controlled Substances Act (CSA), 21 U.S.C. § 802(16), defines marijuana as all parts of the Cannabis sativa L. plant (and its derivatives) with certain specific exclusions. Substances (such as tetrahydrocannabinols (THC), cannabidiols (CBD), or terpenes) that are derived from any part of the cannabis plant that is not excluded from the CSA definition of marijuana are controlled substances, regardless of whether such substances are lawful under State law. See Drug Enforcement Administration (DEA), Clarification of the New Drug Code (7350) for Marijuana Extract for more information about DEA's position on cannabis derivatives. The parts of the cannabis plant that are excluded from the definition of marijuana in the CSA (referred to here as "hemp" ingredients) include hemp seed oil, sterilized hemp seeds, and non-resinous, mature hemp stalks.

Formula approval from TTB is required before a hemp ingredient may be used in the production of an alcohol beverage product. In determining whether a hemp ingredient is allowable for use in an alcohol beverage, TTB will consult with the DEA where appropriate and defers to the DEA in its interpretation of the CSA.

TTB also consults with the U.S. Food and Drug Administration (FDA) on ingredient safety issues where appropriate. In some cases, TTB may require formula applicants to obtain documentation from FDA indicating that the proposed use of an ingredient in an alcohol beverage would not violate the Federal Food, Drug and Cosmetic Act.

For alcohol beverage products containing a hemp ingredient, the product label must accurately and specifically identify the ingredient in a manner that makes it clear that the ingredient is not a controlled substance (e.g., "hemp seed oil" rather than "hemp oil"). Additionally, labeling statements for alcohol beverage products may not create the misleading impression that the product contains a controlled substance or has effects similar to those of a controlled substance.

For more information, including requirements for lab analysis of hemp components, please refer to the "Hemp Policy" published by our predecessor agency in 2000.

TTB notes that section 7606 of the Agricultural Act of 2014, commonly referred to as the Farm Bill, defines "industrial hemp." See 7 U.S.C. 5940.  Subject to certain restrictions, this law allows an institution of higher education or a State department of agriculture to grow or cultivate industrial hemp for purposes of research where allowed under State law. As explained by the Statement of Principles on Industrial Hemp which was issued by USDA, in consultation with DEA and FDA, and published in the Federal Register on August 12, 2016, Section 7606 does not authorize the sale of industrial hemp "for the purpose of general commercial activity." Accordingly, it is TTB's understanding that the Farm Bill does not authorize the use of industrial hemp in the production of alcohol beverage products for sale beyond limited State-sanctioned pilot projects by authorized entities.

NEW AND UPDATED FAQs RELATING TO CRAFT BEVERAGE MODERNIZATION AND TAX REFORM WINE-RELATED ISSUES

Earlier this week, we made some changes to the existing FAQs appearing on our Craft Beverage Modernization and Tax Reform Act (CBMTRA) Web page, and we also published five additional FAQs related to wine.

The changes include:

  • The numbering for all existing FAQs was changed for clarity to include the prefix "TR" to indicate they are questions related to "Tax Reform"
  • TR-W8 (on what constitutes "production"), was updated to refer to the new information available in TR-W11 (related to sparkling wine production)
  • TR-W10 (on storing wine at a Bonded Winery or Bonded Wine Cellar) was updated to link to Industry Circular 2018-1A

All five new FAQs, TR-W11 to TR-W15, concern wine-related CBMTRA issues.

Visit the Craft Beverage Modernization and Tax Reform Act (CBMTRA) Web page for details.

TTB IS LOOKING FOR CANDIDATES TO FILL AUDITOR POSITIONS IN CINCINNATI, OHIO

TTB is recognized as one of the federal government's best places to work. We ranked #4 of 339 in the Partnership for Public Service's 2017 Best Places to Work in the Federal Government ratings (Agency Subcomponents category).  If you're interested in working for TTB, consider applying on or before May 30, 2018, for an auditor position at the TTB National Revenue Center located in Cincinnati.

TTB auditors at the National Revenue Center:

  • Analyze the operational reports and tax returns of permittees on non-voluntary pre-payment of taxes, or whose payment history indicates lack of prudent business practices.
  • Analyze transaction reports, operating reports, variance requests, tax returns and claims, etc.
  • Audit tax returns and tax accounts to determine if there are any outstanding liabilities.
  • Determine regulated products are completely accounted for by comparing and analyzing various documents and data, including tax returns, periodic reports and data stored in Bureau databases. 
For more details view the vacancy announcement: 18-TTB-49-P.

 

 

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