SUBMISSION OF FORM 698-SUPPLEMENTAL,
FORMULA AND PROCESS FOR WINE
Proprietors of bonded wine cellars
and others concerned:
The purpose of this Industry Circular is to remind proprietors
of bonded wine cellars and others concerned of the provisions of
26 CFR Part 240, relating to the filing of Form 698-Supplemental,
Formula and Process for Wine. From time to time we receive
formulas which do not contain the information required by
regulations and instructions on the form. This often necessitates
correspondence and delay in approval. The following items are
those most often found incomplete or omitted and which should
therefore be given careful attention when formulas are prepared
for submission:
1. Special natural wine is a flavored wine made from a base
of natural wine. Therefore, the formula should indicate
that natural wine is the base ingredient. (26 CFR 240.440.)
2. Acids may be used in the production of special natural wines
and sparkling wines. However, the formula should specify
quantities of each acid used and at what point in the process
it will be used. (Fermentation, stabilization, dosage, etc.)
(26 CFR 240.512 and 240.526.) The use of acids may be stated
optionally with a statement that the acids will not exceed
a maximum quantity. Such quantity of each acid to be used
should be stated in grams per hundred milliliters.
3. Treatment of special natural wine with materials which do not
remain incorporated in the wine may be covered by a general
statement in the formula assuring that such treatment will
not exceed regulatory limitations and that the wine will
remain in the standard wine category.
4. Forms 698-Supplemental should be serially numbered in
sequence to the last formula filed whether it was approved or disapproved or is pending. (Instructions on Form 698-Supplemental.)
5. Where Form 698-Supplemental specifies, as an ingredient, an
essence manufactured under a separate formula pursuant to a
Form 698-Supplemental, the essence is required to be identified by its formula number. (26 CFR 240.446.) Where such
essence is manufactured elsewhere it should be identified by
the name and address of the manufacturer, the manufacturer's
nonbeverage drawback formula number, if any, and the date of
approval by the Director, Alcohol and Tobacco Tax Division.
(26 CFR 240.447.)
6. Formulas for sparkling wine must specify whether the
sparkling wine will be bottle-fermented or produced by
the bulk process. (26 CFR 240.513.)
7. Formulas for sparkling wine must state the approximate
period of time required to complete production. (26
CFR 240.513.)
At the time of filing a formula for special natural wine, two 4/5
quart samples of the base wine and two 4/5 quart samples of the finished
special natural wine should be submitted under separate cover. Samples
are not required in connection with formulas for sparkling wines, Flor
Sherry, still wines made from agricultural products and dried fruits
and berries, or high fermentation wines.
Inquiries in connection with this Industry Circular should be
addressed to the Director, Alcohol and Tobacco Tax Division, Internal
Revenue Service, Washington, D. C. 20224, Attention: CP:AT:P.
Harold A. Serr
Director, Alcohol and Tobacco Tax Division |