LABELING AND ADVERTISING OF "LIGHT WHISKY" AND "GRAIN SPIRITS"

Proprietors of Distilled Spirits Plants, and Others Concerned:

Purpose: The purpose of this circular is to alert members of the industry of the provisions of the regulations as they relate to the prospective labeling and advertising of "Light Whisky" and "Grain Spirits". The Service has been requested to announce the procedures which are to be followed in introducing these new products into commercial channels.

Background: Following a Public Hearing held in September 1967, the distilled spirits labeling and advertising regulations (27 CFR, Part 5) were amended by T.D. 6945 to provide standards of identity for "Light Whisky" and "Grain Spirits". In the interest of equity between members of the industry to avoid any unfair advantages resulting from existing stocks of distilled spirits, the status of which would otherwise be affected by the new standards, and to permit the industry an opportunity to adjust its operations to the changed rules, the provisions of the regulations establishing new standards of identity were made effective July 1, 1972.

Conclusion: In recognition of the effective date provisions of T.D. 6945, "Light Whisky" and "Grain Spirits" will not be permitted to be tax-determined, removed from bonded storage, and bottled until July 1, 1972. However, to provide bottlers sufficient time to obtain required documents prior to the date of bottling and because of the price-posting requirements of some of the States, certificates of label approval will be issued pursuant to the submission of proper applications (Form 1649) prior to July 1, 1972, but such certificates will be endorsed so as to make them inoperative until July 1, 1972.

In as much as "Light Whisky" and "Grain Spirits" will be new products to the consumer, it is logical that they should be permitted to be introduced through advertising media prior to their availability in the market. Therefore, in order to permit an orderly introduction of these products to the public, advertising will be permitted 90 days prior to their availability to the consumer. In other words, "Light Whisky" and "Grain Spirits" will be permitted to be advertised on and after April 1, 1972.

Inquiries: Correspondence in regard to this industry circular should refer to its number and be addressed to the Director, Alcohol, Tobacco and Firearms Division (CP:AT:RT) Internal Revenue Service, Washington, D. C. 20224.

Rex D. Davis Director