alcohol beverages generally

TTB yesterday put out a “Message to Industry” about label, permit and other backlogs caused by The 2019 Shutdown. TTB explained what it is doing, to try to alleviate some of the pain, such as allowing more overtime and re-prioritizing. The message goes on to list what industry members can do to help, such as scuttling applications you don’t really need, or improving the quality of those applications.

We think we can add something major to the second list. Thus we are pleased to announce that starting today …

We agree:

1. To provide an ARTAL assessment on up to two labels per permittee, with no charge or obligation. (This means, advise you when it is allowable to use one label approval to cover a non-identical other label. ARTAL stands for allowable revisions to approved labels. A handy video is here.)
2. To do so within three business days of when you send us the new label, together with the most similar COLA you have. This can cut your wait time by 80% or more, with negligible risk. Send the items to colas@bevlaw.com.

This is open to big companies and small. It is open to existing clients and all others. If you need it faster than three days, we may be able to do so...

Atlas Brew Works sued the United States on January 15, 2019 in the DC District Court. Atlas is a brewer based in Washington, DC and argued that the law does not allow the government to, at the same time, require a label approval for beer, when the shutdown makes it impossible to obtain such an approval.

As of this writing, Google has 48,600 articles about the controversy, so I will refrain from summarizing the case, or trying to guess who will win. Instead, I will set out some of the juiciest morsels, from the fascinating arguments presented by both sides. On one side is the famous lawyer Alan Gura, representing the beer company. On the other side is the Acting Attorney General Matthew Whitaker and Assistant U.S. Attorney Jason T. Cohen. The judge is the hugely accomplished Christopher R. Cooper.

Atlas’ complaint, filed January 15th, begins:

The First Amendment never “shuts down.” … The [FAA Act] subjects Atlas to criminal penalties should it ship beer with unapproved labels in interstate commerce. But Congress has not enacted legislation funding the issuance of [COLAs] for beer labels at the present time. There is no telling whether or when such legislation might be forthcoming, or how long it might take the government to approve COLA applications...

The Craft Beverage Modernization Act has been big, good and not so confusing news for U.S.-produced alcohol beverages for about a year already. But when it comes to imported products, there has been lots of confusion, anxiety, and waiting. A lot of this, however, is coming into focus in recent weeks. Last month Customs released this document, to explain how the reduced tax rates will apply to imports. It, and some of the related documents, were not easy to follow. There is lots of talk about various spreadsheets and certifications, but they were not so easy to find, until very recently.

The CBMA spreadsheet is here. The Controlled Group spreadsheet is here. The CBMA Certification is here. FAQs and other, related documents are here.

I am thinking about this topic because American Shipper published a good and clear article about all this on November 2, 2018. The entire article is here, and a few excerpts are below.

In guidance released on Oct. 16, CBP announced the availability of three documents — the Craft Beverage Modernization Act (CBMA) spreadsheet, controlled group spreadsheet and assignment certification — required for importers to claim reduced tax rates for beer, wine and distilled spirits imported during 2018 and 2019, as set forth in the CBMA provisions...