TTB has closed its lab, according to a TTB Newsletter of yesterday. This further fallout from the pandemic could have a strong and negative impact on saké and flavored vodka imports. Saké and flavored vodka are among the small number of alcohol beverage categories that have been stuck with a lab analysis requirement, during the formula and label review and approval process. TTB said:

In response to state and local stay-at-home orders, and for the safety and protection of our employees in the context of the COVID-19 pandemic, all TTB laboratories are temporarily closed, pending further notice. … Due to these closures, we will not be able to process product samples or paper submissions sent to the laboratories via mail until they reopen. … During the laboratory closures, we are temporarily unable to process formula applications for alcohol beverage products, nonbeverage products, or denatured alcohol that require product samples. We will continue to process formulas that do not require laboratory sample analysis and encourage industry members to submit those formulas electronically in Formulas Online.

Many years ago, TTB mandated lab analysis for a much larger swath of the alcohol beverage industry, including imported vodka, absinthe, and even liqueurs. So far TTB is fairly quiet about what a company should do, if it wishes to seek approval...

As an additional response to the burdens that COVID-19 is placing on alcohol beverage industry members, TTB has issued Industry Circular 2020-2. The Circular postpones several filing and due dates where the original date falls on or after March 1, 2020 through July 1, 2020. TTB published the Circular on March 31.

Per the Industry Circular TTB is, among other considerations:

1. Postponing tax payment due dates for wine, beer, and distilled spirits excise taxes.
2. Postponing filing due dates for excise tax returns.
3. Postponing filing due dates for submission of operational reports.
4. Postponing filing due dates for claims for credit or refund by producers.
5. Postponing filing due dates for claims by manufacturers of nonbeverage products.
6. Postponing due dates for submission of export documentation.

See TTB Industry Circular 2020-2.

The due dates and filings are postponed for 90 days from the due date otherwise prescribed. For example, if your DSP operational report is due on May 15, 2020 it is now postponed until August 13, 2020.  Attachment A to Industry Circular 2020-2 provides a list of excise tax payment and filing dates with a corresponding postponement date. Attachment B to Industry Circular 2020-2 provides a list of new due dates for postponed operational reports.

So now it’s not only the (infinite?) amount of cash...

While everyone in our industry struggles with the ramifications of the COVID-19 pandemic, distilled spirits plant (“DSP”) production of hand sanitizer or ethanol (whether denatured or not) for use in hand sanitizer is a particularly important topic. The Food and Drug Administration (“FDA”) and Alcohol and Tobacco Tax and Trade Bureau (“TTB”) are issuing guidance on a seemingly daily basis.

To that end, TTB released Public Guidance 2020-1A on Thursday March 26, 2020, updating its previous March 18th guidance regarding the production of hand sanitizer. This new guidance contains several important points for DSPs moving forward and is valid until June 30, 2020 unless extended by TTB.

First, a DSP may manufacture hand sanitizer without obtaining TTB formula approval if the DSP uses a formula cited by FDA in its March 23, 2020 guidance titled Temporary Policy for Preparation of Certain Alcohol-Based Hand Sanitizer Products During the Public Health Emergency (COVID-19). Although TTB tries to approve non-beverage alcohol product formulas within 10 days or so, by utilizing one of the formulas identified by FDA, DSPs can start producing hand sanitizer as soon as practical. If this saves you even a few days it can go a long way toward helping health professionals and many others who need hand sanitizer.

Second, a DSP does not need to...