PART III ALCOHOL TAX RULINGS AND DECISIONS SUBPART A.-RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1954 Rulings and decisions published in Part III, Subpart A, of the Internal Revenue Bulletin are based on the application of provisions of the Internal Revenue Code of 1954 and, unless otherwise noted therein, are published without consideration as to any application of the provisions of the Internal Revenue Code of 1939, the Federal Alcohol Administration Act, or other public laws. SECTION 5382.-CELLAR TREATMENT OF NATURAL WINE 26 CFR 240.529: Materials authorized for Rev. Rul. 59-217 treatment of wine. (Also Section 240.530.) The use of glycine (amino acid) as a yeast food in the fermentation of wines in the proportion of not more than two pounds per 1,000 gallons of wine will be considered as being consistent with good commercial practice within the limitations of section 240.529 of the Federal Wine Regulations. Winemakers desiring to use glycine (amino acid) within the limitations set forth above in the fermentation of wines may receive the approval of the Assistant Regional Commissioner, Alcohol and Tobacco Tax, by filing of appropriate notice pursuant to section 240.530 of the regulations. Revenue Ruling 58-461, I.R.B. 1958-37, 51, containing a list of materials approved for the treatment or finishing of wine, as amplified by Revenue Ruling 58-595, I.R.B. 1958-49, 20, Revenue Ruling 58596, I.R.B. 1958-49, 20, Revenue Ruling 59-105, I.R.B. 1959-13, 31, Revenue Ruling 59-150, I.R.B. 1959-17, 58, Revenue Ruling 59189, I.R.B. 1959-21, 20, and Revenue Ruling 59-207, I.R.B. 1959-23, 47, is hereby further amplified. 26 CFR 240.530: Notice. Use of glycine (amino acid) as a yeast food in fermentation of wine. See Rev. Rul. 59-217, above. SUBPART C.-RULINGS AND DECISIONS UNDER OTHER PUBLIC LAWS Rulings and decisions published in Part II, Subpart C, of the Internal Revenue Bulletin are based on the application of provisions of other public laws on internal revenue matters, except those relating to the various alcohol taxes, which appear in Part III. SECTION 5(e).-UNFAIR COMPETITION AND UNLAWFUL PRACTICES: LABELING. 27 CFR 4.21: The standards of identity. Rev. Rul. 59-218 Wine made from the Olallie variety of blackberry may be labeled as "Blackberry Wine" or "Blackberry Wine of the Olallie Variety." Revenue Ruling 55-553, C.B. 1955-2, 733, amplied. Advice has been requested whether wine made from the Olallie variety of blackberry may be labeled as "Blackberry Wine." Section 4.21 (e), Class 5, of the Federal Labeling and Advertising of Wine Regulations, issued pursuant to the Federal Alcohol Administration Act, establishes the standard of identity for fruit wine and provides, in part, that "berry wine" is fruit wine produced from berries. Revenue Ruling 55-553, C.B. 1955-2, 733, provides that wine made from a variety of blackberry known as the Olallie berry may be labeled as "Blackberry Wine of the Olallie variety." The Federal-State Market News Service of the United States Department of Agriculture and the California Department of Agriculture, and the Agricultural Marketing Service of the United States Department of Agriculture recognize the Olallie as a variety of blackberry, whereas they do not so recognize the Boysenberry, Loganberry, or Youngberry. Moreover price lists of California canners and packers of berries list the Olallie under the general category of blackberries, in the same manner as the "Cascade," "Evergreen," and "Himalaya" are listed; whereas Boysenberries, Loganberries, and Youngberries are listed separately. As early as 1956, consignor's invoices and consignee's purchase orders described the berries as the Olallie variety of California Blackberries or simply as Blackberries. Also, Olallies have been packaged under labels designating them as "Blackberries" or "California Blackberries" for the past several years. Accordingly, in view of this history of the Olallie variety being known to the trade and consumers as a "Blackberry" or "California Blackberry," wine made from the Olallie variety may be designated as "Blackberry Wine" or "Blackberry Wine of the Olallie Variety." Revenue Ruling 55-553, supra, is amplified. Where "reconstituted tobacco" is to be used as a wrapper for rolls of tobacco, the manufacturer should submit to the Director, Alcohol and Tobacco Tax Division, prior to the marketing of the product, samples of the wrapper material and the finished product, and the proposed design of the package. Revenue Procedure 59-10, I.R.B. 1959-17, 60, amplified. SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to furnish instructions to manufacturers of cigars and cigarettes with respect to the submission of the package design and samples of the product where “reconstituted tobacco," etc., is to be used as a wrapper for rolls of tobacco. SEC. 2. BACKGROUND. Revenue Procedure 59-10, I.R.B. 1959-17, 60, advised that where "reconstituted tobacco," etc., is to be used as a wrapper for rolls of tobacco, the manufacturer should, prior to marketing of the product, submit a sample of the wrapper material, and of the finished product if available, and other information which may be pertinent to the official determination of the rate of tax applicable. Experience has demonstrated that in order to determine the tax status of such product it is necessary that a sample of the finished product and the proposed package design should be so submitted. SEC. 3. SUBMISSION OF SAMPLES. Where reconstituted tobacco is to be used as a wrapper for rolls of tobacco, in addition to a sample of the wrapper material and other information called for in Revenue Procedure 59-10, supra, the manufacturer should submit, prior to marketing of the product, a sample of the finished product, and the proposed design of the package. Samples and information should be submitted to the Director, Alcohol and Tobacco Tax Division, Washington 25, D.C., Attention: Tobacco Tax Branch, for official determination as to the rate of tax applicable to the product. SEC. 4. EFFECT ON OTHER DOCUMENTS. This Revenue Procedure amplifies Revenue Procedure 59-10, I.R.B. 1959-17, 60. SEC. 5. INQUIRIES. Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the Director, Alcohol and Tobacco Tax Division, Washington 25, D.C., Attention: Tobacco Tax Branch. 1 A cumulative finding list of previously published rulings mentioned in Internal Revenue Bulletins, FINDING LIST OF PREVIOUSLY PUBLISHED RULINGS CURRENTLY MENTIONED1-Continued Previous ruling Action Current revenue ruling *Rev. Rul. 58-461, C.B. 1958-2, Amplified. 59-189, I.R.B. 1959–21, 20. 999 as amplified by Rev. Rul. 58-595, C.B. 1958-2, 1003; Rev. Rul. 58-596, C.B. 1958-2, 1003; Rev. Rul. 59-105, I.R.B. 1959-13, 31; and Rev. Rul. 59-150, I.R.B. 1959-17, 58. *Rev. Rul. 58-461, I.R.B. 195837, 51. *Rev. Rul. 59-79, I.R.B. 1959- S.M. 4945, C.B. V-1, 68 (1926). and Rev. Rul. 58-477, I.R.B. Amplified. 59-207, I.R.B. 1959–23, 47. A cumulative finding list of previously published rulings mentioned in Internal Revenue Bulletins, 1958-27 through 1958-52 will be found in Internal Revenue Bulletin 1959-1, dated January 5, 1959. |