This presentation was completed for the National Business Institute seminar on wine and vineyard law held in Long Island, New York on November 10, 2015. My part of the 1 day seminar focused on federal and state licenses and permits. The recording is available for purchase from NBI. This presentation also discusses the governmental players, the types of wineries, where wine can be sold, excise tax, wine labeling (including organic labeling and varietal labeling), wine trade, record keeping and advertising.
a Presentation by Department of Trade and Industry (DTI) at the BSP Regional Financial Literacy Campaign for OFWs in Davao City, Philippines on July 27, 2006
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Answers to Wineries' Top Questions about Sales Tax and DtC ShippingSovos
Slides from a joint webinar with Steve Gross, VP of State Relations, Wine Institute. He is joined by Charles Maniace and Lauren Whitney of Sovos to address sales tax issues facing wineries engaging in direct-to-consumer shipping.
Iowa Alcoholic Beverages Division's presentation at the 2018 ICCE Fall Conference addresses issues and questions revolved around serving and selling alcoholic beverages in the state of Iowa.
a Presentation by Department of Trade and Industry (DTI) at the BSP Regional Financial Literacy Campaign for OFWs in Davao City, Philippines on July 27, 2006
How to Make Awesome SlideShares: Tips & TricksSlideShare
Turbocharge your online presence with SlideShare. We provide the best tips and tricks for succeeding on SlideShare. Get ideas for what to upload, tips for designing your deck and more.
Answers to Wineries' Top Questions about Sales Tax and DtC ShippingSovos
Slides from a joint webinar with Steve Gross, VP of State Relations, Wine Institute. He is joined by Charles Maniace and Lauren Whitney of Sovos to address sales tax issues facing wineries engaging in direct-to-consumer shipping.
Iowa Alcoholic Beverages Division's presentation at the 2018 ICCE Fall Conference addresses issues and questions revolved around serving and selling alcoholic beverages in the state of Iowa.
BeverageTradeNetwork.com helps Wine Distributors Source Boutique Wineries around the world. Wine Distributors around the world can use BTN to post their buying requirement.
The variables involved in attaining an independent restaurant liquor license in Clark County, seem rather daunting.
From the process in reaching the licensing committee to the decision freedoms the committee has by legal right. Each step in the process is a barrier to entry and that does not include the fees involved.
So, why is it difficult to attain a liquor license and
who does the process benefit?
The Licensing Act 2003 states that one needs a permit to sell alcohol in India. Even if you want to give away alcohol for free, you’re required to have this permit. This is because the mere act of giving alcohol away for free is seen as an incentive offered to your customers to purchase from you- one that is a part of your pricing structure.
Restaurant liquor in a pub, a bar, a hotel and so on is legal only and only if the seller holds a valid liquor permit, also called a liquor permit. The agency in charge of approving this license is different in each state across India but it is heavily regulated by the government. Furthermore, cities can also have certain restrictions that are particular only to them. Each state has its own set of rules for restaurant liquor, alcohol consumption and age restrictions. Also, the government forbids home delivery of alcohol. It can solely be bought physically from a licensed shop.
A liquor permit for a restaurant is completely different from the liquor permit acquired by wholesale shops. It accounts for different aspects of sale and distribution, types of alcohol being sold, pricing and so on.
An L1 license, for instance, is granted to companies that run a licensed manufacturing unit. On the other hand, an L6 license would be granted to bottling plants or working distilleries. A P-13 license would be granted to licensed hotels and restaurants to serve alcohol on and off their premises on one specific day for a particular function.
Registration is process by which a company files the required documents with the Securities and Exchange Commission (SEC), detailing the particulars of a proposed public offering.
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This presentation was given to the Illinois Beef Association. It discusses the differences between estate planning, succession planning and business planning. Then it delves into the Who, What, When, Where, How and How Much. It too discusses how to have those difficult conversations and using mediation in this process.
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This presentation gives an overview of labor and employment law issues as it applies to farms and small to mid-sized agribusinesses. It discuss employee vs. independent contractor classifications, unpaid labor, hiring practices, minimum wage and overtime, child labor, Family Medical Leave Act, employment handbooks and firing practices.
This powerpoint presentation was used to speak to Indiana Master Cattlemen Class. It discusses estate planning, business planning and succession planning.
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This presentation was created for the Lawline.com presentation titled "Lawyer's Guide to the Veterinary Feed Directive." The Lawline presentation will be on November 3, 2016 at 3:30pm ET. The recording of the lecture will subsequently be available via Lawline.com at https://www.lawline.com/faculty/cari-rincker. This presentation is broken up in two parts: (1) General Background discussing definitions, regulatory players and the legal framework, and (2) the Second VFD Rule promulgated in June 2015.
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This presentation was given as the keynote at the Tennessee College of Law's Agriculture Law & Policy Symposium. It covers a myriad of food and agriculture law topics including Veterinary Feed Directive, Waters of the United States, Syngenta Litigation, GMO Labeling, Country of Origin Labeling, Raw Milk, Food Safety Modernization Act, Idaho's Ag Gag Litigation, Cannabis Law, and Farm Bill.
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The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
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INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
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WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
Wine & Vineyard Law: Federal and New York State Licenses, Permits & Regulations
1. Wine & Vineyard Law:
Federal and New York State
Licenses, Permits & Regulations
National Business Institute (“NBI”)
November 10, 2015
By Cari B. Rincker, Esq.
2. My Background
• Grew up on a beef cattle
farm in Central Illinois
• Education
– A.S. in Agriculture from
Lake Land College
– B.S. in Animal Science from
Texas A & M
– M.S. in Ruminant (Beef
Cattle) Nutrition from
University of Illinois
– J.D. from Pace Law School
(2007)
3. My Background
• Chair of the American Bar
Association, General
Practice, Solo & Small Firm
Division’s Agriculture Law
Committee
• My food and agriculture
client base
– Farmers to ranchers
– Small to mid-size agri-
business
– Food entrepreneurs
5. Overview
The Players
Types of Wineries
Licenses, Permits & Other Paperwork
Where Wine Can Be Sold
Excise Tax
Wine Labeling
Wine Trade
Record Keeping
Misc. Issues
7. The Players
• Permit
• Labeling and
advertising
• Fair trade practices
Federal
Alcohol
Administration
Act (“FAAA”)
• Qualification of
premises
• Production
• Payment of taxes
Internal
Revenue Code
(“IRC”)
8. The Players: Federal Level
Alcohol and Tobacco Tax
and Trade Bureau (“TTB”)
• Administers laws imposed by laws
set by FAAA and IRC concerning:
• Alcohol production and
distribution
• Wholesale businesses
• Alcohol advertising and labeling
• Not responsible for retail sale of
alcohol or alcohol abuse programs
9. The Players: New York State Level
• Alcoholic Beverage Act
(“ABC”)
– Governs licenses and
regulations within New York
State
• New York State Liquor
Authority
• New York Licensing Bureaus
– Located in New York City,
Albany, & Buffalo
– Receives, examines, &
investigates license and permit
applications
11. Types of Wineries
• Typical commercial
winery that produces and
stores its own wine
• Responsible for keeping
own records, reports,
wine labeling, and paying
taxes
• Requires establishing a
premises, obtaining a
bond, and receiving
permission from TTB
“Stand
Alone”
Bonded
Winery
12. Types of Wineries
• Two or more
wineries share use
of a bonded
winery’s facility
• Bonded winery is
host & only one
required to obtain a
bond
• Other wineries must
qualify on their own
as a winery
Alternating
Proprietor
13. Types of Wineries
• Makes wine that is
ordered by
customers, who then
resell it
• Producer must qualify
as a fully bonded
winery
• Crushes grapes,
ferments, & bottles
• Client is a wholesaler
who provides grapes
for crushing
Custom
Crush
14. Types of Wineries
• Solely
responsible for
storing, blending,
and bottling of
wine
• No fermentation
takes place
• Requires bond
similar to bonded
winery
Bonded
Wine
Cellar
16. Licenses, Permits & Other Paperwork
Being in the wine
business is considered
a privilege by the
government and this
privilege can be
revoked.
• For this reason, it is highly
regulated at the both the
state and federal level.
17. Licenses, Permits & Other Paperwork
TTB must approve
all applications for
wineries before
business operations
can begin.
• Keep in mind the type of
operation (e.g., bonded
winery, alternating
proprietorship)
New York has a
Tied House Law
where a licensed
wine retailer
cannot also be a
manufacturer or
wholesaler of
alcohol (or vice
versa)
18. Licenses, Permits & Other Paperwork
• There is no fee at the federal level to
apply for or maintain approval to operate
TTB-regulated alcohol and tobacco
businesses.
• Applications are reviewed by the TTB
Wine Applications Unit Specialist
• In some cases, it is referred to the TTB
Trade Investigations Division (“TID”)
Field Office for on-site inspection
Required TBB
Documentation
19. Licenses, Permits & Other Paperwork
• For operation of bonded
winery, wine cellar, or
wine bottling house
• Form must be sent in
duplicate to Director of
TBB, National Revenue
Center, Alcohol and
Tobacco Tax and Trade
Bureau
• No cost associated with
application
Application
to Establish
& Operate
Wine
Premises
20. Licenses, Permits & Other Paperwork
• Necessary to engage
in business of
producing or
processing wine, or
importing or
wholesale of alcohol
• Application must be
sent in duplicate to
TBB and Alcohol and
Tobacco Tax and
Trade Bureau
Basic
Permit
In New York, an Alcohol Permit
must be obtained ($38)
21. Licenses, Permits & Other Paperwork
Personnel Questionnaire
for TBB
• The business name and contact
information
• Personal and contact information
for all business owners, officers,
directors, members, partners, etc.
• Questions regarding each
individual’s arrest, criminal and
business background history
• Bank references’ and personal
references’ contact information
22. Licenses, Permits & Other Paperwork
Wine Bond
• Worksheet from TTB used to
determine appropriate amount
of bond required for specific
establishments
• Required for every operation that
produces or stores untaxed wine
• Also need to include
• Personal contact information
for the obligor or all partners if
it is a partnership
• Bond coverage and category
23. Licenses, Permits & Other Paperwork
• This form is filled out with
the TBB to determine the
winery’s impact on the
environment in terms of
waste and pollution
• Application requires
descriptions of:
• Heat and power to be
used and its purpose
• Air pollution control
equipment proposed
• Types of wastes, amount
of those wastes, &
methods of disposal
Environmental
Information
24. Licenses, Permits & Other Paperwork
Supplemental Information
on Water Quality
Consideration
• This form is to determine if a
certificate or waiver by the State
Water Quality Agency is required
• Sent to the TBB and the National
Revenue Center
25. Licenses, Permits & Other Paperwork
Power of Attorney
• This is a signing
authority for Corporate
and LLC officials
• Allows winery to have
their appointed
attorney represent the
principal with the TTB
26. Licenses, Permits & Other Paperwork
• Required before any
business activity can
take place
• Requires information
regarding:
• Type of dealer
• Subclass
• Business
information
Special Tax
Registration
27. Licenses, Permits & Other Paperwork
Required in some
cases
• Alternating Proprietor
Agreement or Contract
• Lease agreement
• Organizational
documents for LLC,
Corp, or LP
28. Corporate Formality Paperwork For TBB
Type of Entity Documents Requested
Corporations or
limited liability
companies
(a) Charter or certificate of existence, incorporation, or organization.
(b) Names and addresses of officers, directors, members and
managers.
(c) Certified extracts of minutes authorizing certain individuals to
sign.
(d) Statement showing the number of shares/ownership of each class
of stock/interest authorized and outstanding, and the voting rights
of the respective owners or holders.
(e) Statement of interest: Names and addresses of the 10 persons
having the largest ownership or other interest and nature and
amount of the stockholding or other interest of each, whether the
interest appears in the name of the interested party or in the name
of another party. The Director, National Revenue Center may
request the names of interested persons if the applicant
corporation or LLC is wholly owned or controlled by another
corporation or LLC.
29. Corporate Formality Paperwork For TBB
Type of Entity Documents Requested
Partnerships (a) True copies of articles or partnership agreement, if any, and of the
certificate of partnership where required to be filed by local
authority.
(b) Description of the wine premises.
(c) Whether, if the application is not for a bonded wine premises
where production of wine will take place, the applicant agrees to
having his or her name listed in a TTB publication to be distributed
to the public.
(d) Any trade names.
(e) Any basic permits and bonds (include the present one).
(f) If the applicant is a volatile fruit-flavored concentrate operation,
he or she must follow additional instructions found at the end of
the form.
(g) If there are any other operations occurring on the wine premises,
these must be disclosed.
30. Licenses, Permits & Other Paperwork
Suggested documents for TBB
• Trade name registrations
• Diagram of bonded wine premises
31. New York Paperwork
Requirements
•Requirements for individuals
•Over 21 and
•US Citizen, permanent resident, or citizen of
country who is able to obtain visa to enter US to
engage in trade
•Requirements for LLC or Corp
•Officer must be over 21 and
•US Citizen, permanent resident, or citizen of
country who is able to obtain visa to enter US to
engage in trade
Person who is convicted felon, a police
officer, or whose license to sell alcoholic
beverages was suspended within last 2
years cannot obtain license
32. New York Paperwork
• Two categories of
licenses under ABC:
– Retail
• On premises – Customer
drinks wine at retailer’s
location
• Off premises – Store
where wine is sold
• Both types are required
to have $1,000.00 bond at
all times
– Wholesaler/
manufacturer
33. New York Paperwork
• Farm License
Winery
– Farm grows fruit on
premises where
wine is produced
– Can be sold to
dealers, distributors,
and individuals who
visit the farm
34. New York Paperwork
Wine Tasting Licenses
• Anyone licensed to sell wine is permitted to
conduct wine tastings on their premises
• Winery can conduct tastings of NY labeled
wine at establishments that have licenses
to sell wine at retail for on-site
consumption
• Tasting must occur under supervision of
winery owner, wholesaler, importer, or
agent
• Farm wineries can also conduct tastings at
the New York State Fair, county fairs, and
farmers markets
36. Where Wine Can Be Sold
License Class Description
Wine Product A "wine product" is defined as a beverage containing wine with added
juice, flavoring, water, citric acid, sugar and carbon dioxide, not
containing more than six percent alcohol by volume (typically referred
to as "wine coolers").
Restaurant Wine License for on-premises consumption of wine and beer in a place
where food is prepared in such quantities that the sale of wine and
beer is not the prime source of revenue.
Hotel Wine Allows on-premises sale of wine and beer in both a restaurant in the
hotel as well as room service.
Club Wine Does NOT mean "nightclub" or "private bar" designed to restrict
admission to a specific group of persons, or class of people. See "Club
Beer" for definition of "Club." Allows for on-premises sale of wine or
beer for club members and guests. The club must appoint an ABC
officer.
37. Where Wine Can Be Sold
License Class Description
Tavern Wine Allows sale for on-premises consumption of wine and beer.
Liquor Store For the sale of liquor and wine (no beer) for consumption off the
premises. The only additional items allowed to be sold, such as ice
and corkscrews, are listed in the ABC Law. Only one license is
allowed per person (corporation, partnership, etc.).
Wine Store Not to be confused with the Retail Wine Outlet for a Farm Winery.
License to sell WINE ONLY (not liquor or beer) for off-premises
consumption, under the same basic conditions as a Liquor Store.
39. Excise Tax
• Tax paid on purchases made on a specific
good, such as wine
• Tax increases as alcohol level increases
Amount of Alcohol Excise Tax
If ½ of 1% to less than 14% alcohol $1.07
If more than 14% but less than 21% alcohol $1.57
If more than 21% but less than 24% alcohol $3.15
Artificially carbonated $3.30
Sparkling $3.40
40. Excise Tax
• Up to $0.90 per gallon on
part of the small domestic
producer’s annual taxable
removals, other than
sparkling wine
• Theory is to make tax rates
for small wineries to what
they were before 1991
when tax on wine was
increased to $0.90 per
gallon
Credit for
small
domestic
producers
43. Wine Labeling
• TBB Preapproval
– Wine labels must be pre-approved by TTB if
entering into interstate commerce.
• To comply with the TTB, the party responsible for
bottling the wine must obtain a Certificate of Label
Approval (“COLA”) from the TTB after the approval.
• However, if the label is made strictly for sample usage,
it does not need a COLA.
– The turn-around time for currently processing a
label application is 23 days for wines.
45. Wine Labeling:
Components of a Wine Label
• Vintage Date
– When the grapes
were harvested
– #1 shows the
Vintage Date
– If shown 95% of
grapes must have
been harvested
by that year
46. Wine Labeling:
Components of a Wine Label
• Estate Bottled
– This means that 100%
of the grapes used in
the wine came from
land by that winery
(“estate”).
47. Wine Labeling:
Components of a Wine Label
• Appellation of Origin or
Wine Region
– This is included on a label if
75% of the grapes used to
make the wine were grown
in whatever location is
named.
– Appellation of Origin
provides the geographic
origin of where the grapes
were grown.
48. Wine Labeling:
Components of a Wine Label
• Varietal
Designation
– This is the grape
variety that is used
to make the wine
– This isn’t required
– could just say
“red wine” “white
wine” “rose wine”
49. Wine Labeling:
Components of a Wine Label
• County-of-Origin (“COOL”
or “mCOOL”)
– Although this might change
due to WTO issues, COOL is
still the law in the U.S. (as of
October 25, 2015)
– This is required by the U.S.
Customs and Border
Protection for containers of
imported wine.
50. Wine Labeling:
Components of a Wine Label
• Name of Winery or
Brand Name
– #2 on this Label
– Must not mislead the
consumer about the
age, identity, origin or
other character of the
wine
51. Wine Labeling:
Components of a Wine Label
• Alcohol content
– Must include
percent by volume
of alcohol
– Can be labeled
“table wine” or
“red wine” if
content between
7% and 14%
– Dessert wine if
over 14%
52. Wine labeling:
Components of a Wine Label
• Declaration of
Sulfites
– If there is 10 or more
parts per million of
sulfur dioxide, this
must be indicated if
the wine is intended
for interstate
commerce
– #7 on this label
53. Wine Labeling:
Components of a Wine Label
• Name and address
of Bottler or
Importer
– Must appear on
bottle/container
– Can be operating
name of winery or
trade name
– #4 on this label
55. Wine Labeling:
Components of a Wine Label
• Health Statement
– 2 required statements:
• “According to the
surgeon general,
women should not
drink alcoholic
beverages during
pregnancy because of
the risk of birth
defects”
• “Consumption of
alcoholic beverages
impairs your ability to
drive a car or operate
machinery, and may
cause health
problems.”
– #7 on this label
57. Wine Labeling:
Standards of Identity of Wines
Divided into 9 classes
to describe taste,
production, method &
composition of waste
58. Wine Labeling:
Standards of Identity of Wines
• Grape wine
– This includes table and
dessert wine as well and
refers to wine produced
by the normal alcoholic
fermentation of grapes.
59. Wine Labeling:
Standards of Identity of Wines
• Sparkling Wine
– Includes sparkling wine
and champagne
– Sparkling wine is grape
wine made “sparkling”
with carbon dioxide that
results directly from the
fermentation of the wine
within a closed container.
60. Wine Labeling:
Standards of Identity of Wines
• Carbonated Grape Wine
– This is made effervescent
by carbon dioxide other
than that resulting from the
second fermentation of the
wine in a closed container.
61. Wine Labeling:
Standards of Identity of Wines
• Citrus Wine
– This is similar to grape
wine, but uses different
fruits.
• Fruit Wine
– This is similar to grape and
citrus wines, but using
other fruits, such as berries.
62. Wine Labeling:
Standards of Identity of Wines
• Wine from other
agricultural products
– Uses other agricultural
products besides fruit
– Ex: raisin wine and sake
(rice wine)
63. Wine Labeling:
Standards of Identity of Wines
• Aperitif Wine
– An example of this is
Vermouth; it is a wine
with an alcohol content
more than 15% and is
grape wine with added
brandy or other alcohol,
and flavoring.
64. Wine Labeling:
Standards of Identity of Wines
• Imitation
– Wine containing any
synthetic materials
(such as wine made
from mixing water with
residue that remains
after pressing grapes)
and must state
“imitation” wine on the
bottle.
65. Wine Labeling:
Standards of Identity of Wines
• Substandard
– “Substandard” wine
must be listed as well if
it is substandard wine
(which is too acidic to
meet the standard of
other wine).
66. Wine Labeling:
Standards of Identity of Wines
• Retsina Wine
– This is grape wine with
(tree) resin added,
usually pine resin.
– This wine is popular in
Greece
68. Wine Labeling:
Varietal Labeling
Display of single type of grape
used in that wine
Can be used rather than stating
a class
Variety grape name must be
approved by TTB
Origin of grape must appear on
label if using varietal labeling
69. Wine Labeling:
Type Designations of Varietal Significance
Type Designation Description
Muscadine This is an American wine that derives at least 75% of its volume from
Muscadinia rotundifolia grapes.
Muscatel This is an American wine that derives its predominant taste, aroma,
characteristics and at least 75 percent of its volume from any Muscat
grape source.
Muscat or Moscato This is American wine that derives at least 75% of its volume from any
Muscat grape source. Moscato is the Italian name for Muscat.
Scuppernong This is an American wine which derives at least 75% of its volume from
bronze Muscadinia rotundifolia grapes. Large variety of Muscadine.
Gamay Beaujolais An American wine which derives at least 75% of its volume from Pinot
noir grapes, Valdiguié grapes, or a combination of both.
27 CFR § 4.25
71. Wine Labeling:
Geography & Winemaking
Generic
e.g., Sake,
Vermouth
Semi-
generic
e.g., New
York Chablis,
Napa Valley
Burgundy
Non-
generic
Non-generic wines
which are not
distinctive
designations of
specific grape wines
include American,
California, Lake Erie,
Napa Valley, New
York State, French,
and Spanish
Wines can be known by region from
which they come from and fit into
3 categories
73. Wine Labeling:
Organic Labeling
• Organic wine is overseen
by USDA’s Agriculture
Marketing Service’s
(“AMS”) National
Organic Program
(“NOP”) & TBB
• NOP regulations are
found in 7 CFR §205
– These regulations
address the production,
processing, handling,
labeling, and marketing
of organic products.
74. Wine Labeling:
Organic Labeling
• Prior approval from USDA
required to make organic
claim on “principal display
panel” and use USDA organic
seal
• Informational panel can have
certified organic ingredients
listed
– Organic certificate of ingredient
must be submitted to TTB
75. Wine Labeling: Organic Labeling
Prior to selling organic alcohol, a manufacturer’s label must be
approved through the following steps:
• Certifying agent reviews the alcohol label(s) to assess compliance
with USDA organic regulations.
• Certifying agent stamps/signs label(s), verifying compliance with
USDA organic regulations.
• TTB permitee (organic operation) completes the Certificate of Label
Approval (“COLA”) application.
• TTB permitee submits COLA application and label(s) approved by
the certifying agent to TTB. No longer requires a copy of the
organic certificate.
76. Wine Labeling: Organic Labeling
• However, on the
informational panel,
certified organic
ingredients can be listed
as such.
• If one does this, he or she
must also “obtain a copy
of that ingredient’s
organic certificate and
submit it to TTB.
If the wine is not
certified organic,
there cannot be any
claims that the wine
is organic on the
“principal display
panel” and the
bottle cannot use
the USDA organic
seal on the label.
77. Wine Labeling:
Organic Labeling
“Made with
Organic Grapes”
• Means that 100% of the
grapes used were
organic and this was
certified verifying wine
meets all organic
regulations by USDA
• Other ingredients need
not be organic
78. Wine Labeling: Organic Labeling
“Organic” “Made with Organic Grapes”
Overseen by a certifier? Yes Yes
USDA organic seal allowed? Yes No
Organic claims allowed in addition to
ingredient statement?
Yes Yes
Non-organic grapes allowed? No No
Added sulfites allowed? No Yes but only up to 100 parts per
million (and disclosed on label)
80. Wine Trade: Importation
Permits
• Importer’s Basic
Permit
• Alcohol Dealer
Registration Form
from TTB
• A Certificate of Label
Approval (COLA) for
each product
81. Wine Trade: Importation
• Wine imported from
countries subject to
international agreements or
treaties must have proper
cellar treatment
• i.e. conform with US
practices & procedures
• Wine from other countries
require a certification
regarding procedures and
practices
Certification
82. Wine Trade: Importation
Duties, Taxes, and Fees
• Wine importers are responsible for federal excise taxes and duties
• Rates are set by TTB
83. Wine Trade: Exportation
Permit required for non-
bonded wine cellars
Taxpaid wine may be exported
to foreign country, i.e. this is
wine on which tax is already
paid
All exported wine must have
“export” on each container or
case of wine
84. Wine Trade:
New York Transporting/Shipping
Direct shipping
•Wine manufacturers
can take orders from
state residents and
ship direct to
consumer
•Out-of-state
wineries can ship to
New Yorkers if they
obtain permit and
allow New York
wineries to ship to
their residents
Shipping must be
through a
company with a
trucking permit
85. New York Reciprocity States
Arizona California Colorado Connecticut Georgia Hawaii Idaho
Illinois Maryland Massachusetts Michigan Missouri Montana New Jersey
New Mexico North Carolina Ohio Oregon South Carolina Tennessee Texas
Vermont Virginia Washington Wisconsin
86. Wine Trade:
New York Transporting/Shipping
Interstate shipment
• Anyone licensed to sell
wine in any other state
and obtains an out-of-
state “direct shipper’s
license” may ship up to
36 cases of wine
produced by that
person’s winery per
year directly to a New
York State resident
87. Wine Trade:
New York Transporting/Shipping
Intrastate shipment
• Once a license is obtained, a winery or
farm winery can ship up to 36 cases of
wine per year directly to a New York
State resident who is (1) over the age of
21 and (2) as long as it is not for resale.
• Label must clearly state: “contains wine-
signature of person age 21 or older
required for deliver-not for resale”
• Shippers must acquire signature of
person accepting delivery of above
stated requirements
89. Record Keeping
• Any producer of wine must have records
showing the receipt and use of winemaking
materials received on the wine premises
• The date of receipt,
• The quantity received or quantity used or
produced (for juice),
• The name and address from whom it was
received,
• That date of use or other disposition of the
materials
Receipt of Materials and Production
90. Record Keeping
• Additional
requirements:
• A summary record
maintained by tax
class,
• Documentation of
wine production,
receipts, removals,
blending operations,
and losses, and
• May contain
information about
sugar, acid,
chemicals, etc.
Bulk
Still
Wine
Records
91. Record Keeping
Bottling and Bottled Wine
• If wine packaged on site
where it was
manufactured, must have
records of:
• The volume of wine
received, bottled, and
removed,
• The COLA serial
numbers, and
• Results of fill and alcohol
tests
92. Record Keeping
Removals and Receipts
Records must be kept when wine is removed from bond for
consumption or sale, which should be summarized daily to
nearest tenth of a gallon
Inventory must be kept if wine premise stores
taxpaid wine
Records must be kept for any unmerchantable
taxpaid wine returned to bond
Very specific information is required for a
transfer in bond
93. Record Keeping
Inventories
• Annual reports
•Necessary if less than 20,000
gallons of wine are on hand
and annual federal excise tax
will be filed
• Quarterly reports
•Necessary if less than 60,000
gallons of wine are on hand
and quarterly federal excise
tax return will be filed
• Monthly reports
•Necessary if more than
60,000 gallons of wine on
hand or more than $50,000
in federal excise tax paid each
year
95. Other New York Laws
Wholesaler
• Must have an office in
New York State with an
employee present
during regular business
hours
• Wine must be sold in
sealed containers of less
than 15 gallons each
Franchise
• Must submit application
to NY Department of
Law before offers or
sales of franchises are
made
• Approval of application
allows franchise to be
effective for one year
96. Other TTB Regulations
• Regulated by TTB, but does
not require prior approval
• Prohibited practices are:
• False or untrue
statements
• Statements not
consistent with label
• False or misleading
statements disparaging
competitor
• Misleading guarantees
Advertising
97. Other TTB Regulations
Advertising
• Items that must be contained in
advertisement:
• Name and address of the permittee
responsible for the advertisement’s
publication or broadcast
• Class, type, and distinctive designation
• Exception: Only name & address required for
advertisement of general wine line or all of
the wine products of one company
98. Oh, P.S. – I Wrote a Book!
Cari B. Rincker & Patrick B.
Dillon, “Field Manual: Legal
Guide for New York Farmers
& Food Entrepreneurs”
(2013)
Available at
http://www.amazon.com/Fi
eld-Manual-Legal-Farmers-
Entrepreneurs/dp/1484965
191
www.newyorkagriculturelaw.com
99. Please Stay in Touch
• Send Me Snail Mail: 535 Fifth Avenue, 4th Floor,
New York, NY 10017
• Call Me: (212) 427-2049 (office)
• Email Me: cari@rinckerlaw.com
• Visit My Website: www.rinckerlaw.com
• Read My Food, Farm & Family Law Blog:
www.rinckerlaw.com/blog
• Tweet Me: @CariRincker @RinckerLaw
• Facebook Me: www.facebook.com/rinckerlaw
• Link to Me:
http://www.linkedin.com/in/caririncker
Editor's Notes
In this type of winery, the documents that must be filed with the TTB include:
1) Application for Basic Permit;
2) Application to Establish and Operate a Wine Premises;
3) Wine Bond (generally in the amount of $1,000 for smaller wineries);
4) Environmental/Water Quality information;
5) Signing Authority or Power of Attorney;
6) Personnel Questionnaires for Owners/Officers/Directors; and
7) Other supporting documentation. All applications and form are discussed in II.C infra.
For this type of winery, the documents that must be filed with the TTB include:
1) Application for Basic Permit;
2) Application to Establish and Operate a Wine Premises;
3) Wine Bond (minimum amount of $1,000);
4) Diagram of premises depicting the alteration agreement;
5) Environmental/Water Quality information;
6) Signing Authority or Power of Attorney;
7) Personnel Questionnaires for Owners/Officers/Directors; and
8) Other supporting documentation.
In this type of winery, the documents that must be filed with the TTB include:
1) Application for Basic Permit;
2) Signing Authority or Power of Attorney;
3) Personnel Questionnaires for Owners/Officers/Directors; and
4) Other supporting documentation.
In this type of winery, the following documents must be filed with the TTB:
1) Application for Basic Permit;
2) Application to Establish and Operate a Wine Premises;
3) Wine Bond (minimum amount of $1,000);
4) Environmental/Water Quality information;
5) Signing Authority or Power of Attorney;
6) Personnel Questionnaires for Owners/Officers/Directors; and
7) Other supporting documentation.
All documents may be sent in the U.S. mail, and some can be filled out online
The TTB recommends using their online system, when available, for faster results. In any case, the TTB should usually respond to the applicant within about 7-10 business days.
An applicant should be prepared to provide the following information:
A serial number (which means that if this is the first application, it should be numbered “1.”
The date
The registry number (blank if this is the first application)
Name and address
An applicant should be prepared to provide the following information:
The federal employer identification number (“FEIN”) of the business
Any D/B/A name
Labeling trade names (if applicable)
Type of business to be conducted at the premises
Ownership information for sole owners, all general parties, LLC members/managers, corporate officers and directors, and shareholders with more than 10% voting stock and the personal information following below
Name, social security number, date of birth and place, citizenship status
Alias
Residences for the past 5 years
Gender
Whether the applicant or any other persons listed for the business on this form has ever been denied a permit, license, or other authorization to engage in business to manufacture, distribute, import, sell, or use alcohol products by any government agency or had such permit, license, etc. suspended or terminated
Whether the applicant or any other persons listed for the business on this form has ever been arrested for, charged with, or convicted of any crime under federal, state or foreign laws other than traffic violations or non-felonious offenses
Any label approvals should be provided as well (TTB form 5100.31). This form is discussed under wine importation permits, infra.
This is TTB Form 5120.36. This worksheet figures out the appropriate amount of the bond. This is required for every operation that produces or stores untaxpaid wine. One must file duplicate original bonds with the Director, National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau. There is no cost for this form and it should be submitted with the other documentation in this section as the entire application to the TTB.
An applicant should be prepared to provide the following information:
Personal contact information for the obligor or all partners if it is a partnership
Bond coverage and category.
Available at http://www.ttb.gov/forms/f512036.pdf (last visited September 11, 2015).
Personal contact information
Number of employees
Location (specific address and description of premises and surrounding area)
Type of heat and power to be used and its purpose
Description of any air pollution control equipment proposed for use in connection with fuel burning equipment, boilers, or smokestacks
Description of any solid waste and the amount
Proposed methods of disposal of solid waste
Description of any air pollution control equipment proposed for use in connection with any incinerators
Description of any liquid waste and the amount
Proposed methods of disposal of liquid waste
Description of any pollution control equipment that could monitor quality and/or control liquid waste
Any expected noise.
This is TTB Form 5000.30. This form is to determine if a certification or waiver by the applicable State Water Quality Agency is required under Section 21 of the Federal Water Pollution Control Act. See 33 U.S.C. §1341(a). An original and one copy of this form should be sent to the Director, National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau. There is no cost for this form and it should be submitted with the other documentation in this section as the entire application to the TTB.
An applicant should be prepared to provide the following information:
Application information from TTB Form 5000.29
Description of any direct or indirect discharge into navigable waters which may result from the winery activities, and the location of where such discharge may enter navigable waters
Dates on which the winery activities will begin and end and, if known, when the discharge date will be
Description of the methods and means used to monitor the quality and characteristics of the discharge and the equipment or facilities employment in the treatment or control of waste.
Available at http://www.ttb.gov/forms/f500030.pdf (last visited September 11, 2015).
This is TTB Form 5000.8 or Signing Authority for Corporate and LLC Officials 5100.1. Obviously, this form will depend on what type of entity the applicant’s winery is, but shows the TTB the appointed attorney to represent the principal. This form must be filed in duplicate and sent to Director, National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau. There is no cost for this form and it should be submitted with the other documentation in this section as the entire application to the TTB. This form is self-explanatory.
This is TTB Form 5630.5d. This form is required before any business activities begin. The special (occupational) tax on producers and marketers of alcoholic beverages was repealed by Section 11125 of Public Law 109-59 as of July 1, 2008. This form gets sent to the Alcohol and Tobacco Tax and Trade Bureau at the address listed on the form. There is no cost for this form and it should be submitted with the other documentation in this section as the entire application to the TTB.
Applicants should be prepared to provide the following information:
Personal contact information
Whether this is a new business, existing business, change in any business information such as name or ownership information, etc.
Type of dealer (retail or wholesale) and the subclass (liquor, beer, wine, spirits, or a combination thereof)
Business address
Ownership personal contact information.
Available at http://www.ttb.gov/forms/f56305d.pdf (last visited September 11, 2015).
Organizational Documents
For a limited liability company, the TTB requires a copy of the Articles of Organization, copy of the Operating Agreement, list of members (their addresses and their percentage of interest), and a copy of the Certificate of Organization, where appropriate. For New York, this would be the Operating Agreement.
For a corporation, the TTB requires a copy of the Articles of Incorporation, a copy of the Bylaws, a list of officers, directors and anyone else holding more than 10% stock (their addresses and the number of shares held), and a copy of the Certificate of Incorporation, where appropriate. For New York, this includes a Certificate of Incorporation and Articles of Organization.
For general and limited partnerships (“LP”), the TTB requires a copy of the Partnership Agreement, a list of the partners, a copy of the Certificate of Partnership where applicable. If there is no written partnership agreement, then the partners will need to submit a written statement that states this and is signed by all of the partners.
Trade Name Registration
This is necessary to show the winery’s Trade Name. This is when a name other than the official corporate or business name is used on a label. This trade name must be consistent with the trade name displayed on all of the TTB application documents. This trade name is requested in line item #5 on the Application for Basic Permit Under the Federal Alcohol Administration Act.
Diagram of the Bonded Wine Premises
This is a diagram of bonded wine premises from all alternating proprietor hosts and tenants. This is only needed if there is an alternating host relationship. The TTB does not require it, but suggests it, as it is helpful during TTB’s processing of the application.
In New York, wine does not require state approval if the label has been approved by TTB
If there is a vintage date, an origin smaller than a country must be included as well. If a state of country is used, then 85% of the grapes must be from that year. If a viticultural area is used, then 95% of the grapes must be from that year
The winery must be located in a viticultural area. In addition, that winery must have crushed and fermented the grades, finished, aged, and bottled the wine.
Appellations are defined either by state or country, or by federally-recognized growing regions called American Viticultural Areas (“AVAs”).
Chart in materials on this
For American wines, the following type designations may be used if the wine is labeled with an appellation of origin as defined in 27 CFR §4.25.
Generic
A generic designation is extremely broad. It includes wines such as Sake and Vermouth.
Semi-Generic
A semi-generic wine is a wine made in the U.S., but named after a place that the TTB required to be modified by a U.S. name of geographic origin. This includes wines such as a New York Chablis or a Napa Valley Burgundy.
Non-Generic
Non-generic wines refer to a name of geographic significance that is not generic or semi-generic and can only be used to designate wines of the origin indicated by such name. Non-generic wines which are not distinctive designations of specific grape wines include American, California, Lake Erie, Napa Valley, New York State, French, and Spanish. Examples of nongeneric names which are also distinctive designations of specific grape wines are: Bordeaux Blanc, Bordeaux Rouge, Graves, Medoc, Saint-Julien, Chateau Yquem, Chateau Margaux, Chateau Lafite, Pommard, Chambertin, Montrachet, Rhone, Liebfraumilch, Rudesheimer, Forster, Deidesheimer, Schloss Johannisberger, Lagrima, and Lacryma Christi.
See 27 CFR §4.24(a)(2).
See 27 CFR §4.24(c).
1. Certifying agent reviews the alcohol label(s) to assess compliance with USDA organic regulations.
2. Certifying agent stamps/signs label(s), verifying compliance with USDA organic regulations.
3. TTB permitee (organic operation) completes the Certificate of Label Approval (“COLA”) application.
4. TTB permitee submits COLA application and label(s) approved by the certifying agent to TTB. No longer requires a copy of the organic certificate.
Side note about GMO free
The first thing that must be done if one wants to import alcohol is to apply for an Importer’s Basic Permit. The applicant must also complete the Alcohol Dealer Registration Form (TTB Form 4530.5[d]) and obtain a COLA for each product/label. One must also apply for a Wholesaler’s Basic Permit if one plans to sell alcohol beverages other than what is directly imported with the Importer’s Basic Permit. To obtain a COLA, the importer must file an "Application for and Certification/Exemption of Label/Bottle Approval," on TTB 5100.31 (PDF) with TTB’s Advertising, Labeling and Formulation Division (ALFD).
This can be found at the TTB’s website, available at: http://www.ttb.gov/ponl/permits-online.shtml.
See TTB’s website on importing available at http://www.ttb.gov/itd/importing_alcohol.shtml (last visited September 7, 2015).
Wines that are imported subject to international agreements or treaties must have proper cellar treatment of the wine (which means it must conform with practices and procedures acceptable to the U.S.). Wines imported from countries without an agreement or treaty need to have a certification regarding practices and procedures used to produce such wine. See 26 U.S.C. 5382. This certification may be either: (1) “a statement from the producing country’s government or government-approved entity having oversight or control of enological practices. This form of certification includes the results of a laboratory analysis of the wine performed by either a government laboratory or a laboratory certified by the government of the producing country” or (2) “a statement from the importer, that is, a ‘self-certification.’”
One may self-certify “if an importer or its affiliate owns or controls a winery operating under a basic permit issued under the FAAA, that importer may certify that the practices and procedures used to produce the wine constitute proper cellar treatment (self-certification). An importer who self-certifies does not need to obtain a producing country certification and laboratory analysis.”
See TTB’s website available at http://www.ttb.gov/itd/importing_alcohol.shtml (last visited September 7, 2015).
See TTB’s website available at http://www.ttb.gov/wine/qa.shtml#Q12 (last visited September 7, 2015).
If a winery is not a proprietor of a bonded wine cellar and the winery wants to export taxpaid wine, then the winery must first obtain a permit. Taxpaid wine may be exported to a foreign country, for use as supplies on U.S. vessels and aircrafts, transfer to and deposit into a foreign-trade zone for exportation or storage pending exportation, or shipment to the U.S. armed forces for uses overseas. Any exported wine must have the word “export” on each container or case of wine.
If the winery is a wholesaler and the winery is removed taxpaid or tax determined wine, then the winery can make a claim for drawback of taxes. On the Form TTB 5120.24, there must be acceptable proof of exportation.
Taxpaid wine is wine on which a tax has already been paid. The federal excise tax is required to be paid when wine is shipped out for sale.
See 27 CFR §28.40 through 42.
The states currently who participate in this reciprocity include: