
Brewers should be happy to hear that on June 8, 2022, The Alcohol Tax and Trade Bureau (TTB) proposed amendments to regulations for Brewers Notices. TTB’s goal with these amendments is to reduce barriers for brewers by eliminating, modifying, and streamlining the qualification and reporting processes. There are ten proposed amendments.
(1) Retail service operations
Brewers who operate as a “tavern” or “brewpub” currently have to designate a separate tavern area where beer may be sold and served for consumption on the premises. TTB proposes that instead, they will include general provisions to account for beer sold and served anywhere on the premises.
(2) Premises description
The current format for brewery premise descriptions is open-ended, leading to confusion, increased communication among TTB agents and the brewer, and delays in the review process. To eliminate these issues, TTB proposes to tailor the questions describing the brewery premises narrowly. For example, instead of describing the tract of land, the brewer would describe the overall dimensions of the building housing, and if the brewery occupies less than the entire building, the brewery boundaries within the building.
(3) Statements of interest
TTB proposes to clarify the collection of information for persons holding ownership interests in the business. The amendment provides that persons required to disclose basic identifying information (i.e., names and addresses) are those with an ownership interest of 10 percent or greater and where a “person” holding such interest is a legal entity, the brewer must submit basic identifying information about a representative for that entity.
(4) 30-day filing requirements to changes in the business
The reporting period for certain changes in a brewery’s business is 30 days, which TTB proposes to extend to 60 days. TTB reviewed public comments that 30 days was too strict of a timeline for the regulated entities to assemble and submit the required information to the TTB, such as any changes to officers or directors of the business.
(5) Changes in the trade name
TTB requires brewers to submit an amended Brewer’s Notice for changes to or additions of trade names. The proposed amendment would allow brewers only to provide a written notice to the TTB to reflect the changes in trade names before using such names for labeling purposes.
(6) Retention of records of premise
Current TTB regulations do not allow brewers to maintain records at a location off the brewery premises unless explicitly authorized by TTB. TTB proposes to allow brewers to keep records at a location other than the brewery upon written notice to the TTB rather than apply for approval.
(7) Inventory requirements
TTB requires that brewers take physical inventories of beer on hand at least once a month, within seven days of the close of the month for which it is made. TTB wants to align the taking of inventories with the filing of tax returns for brewers who file less frequently than monthly. This would allow qualified brewers to complete physical inventories annually or quarterly.
(8) Discontinuance of business
Rather than submitting a Brewer’s Notice form and then obtaining TTB approval, TTB proposes to allow a written notice to the appropriate TTB officer as adequate notice of discontinuance of business. The amendment will also dispose of the brewer’s requirement of submitting a final report.
(9) Blanket bond form for multiple breweries
Currently, any entity operating multiple breweries must secure a separate bond for each brewery, if required to hold a bond. TTB wants to allow such entities to secure one bond covering all brewery operations to reduce the burden on the industry and TTB.
(10) Notice of intent to destroy taxpaid beer of premises
TTB is proposing to permanently eliminate the requirement that breweries notify TTB 12 days prior to destroying taxpaid beer off brewery premises. TTB would instead require brewers to submit proof of destruction in the form of commercial records. This allows brewers flexibility in the timing of beer destructions and avoids requiring brewers to store taxpaid beer longer than necessary.
TTB is asking for comments on this proposal via the regulations.gov form by August 8, 2022.
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