Top Tip from a Distillery Investigator: Gauge Every Time It’s RequiredWe require distilled spirits to be gauged at numerous points in the production, storage, and removal processes to ensure accurate tax determination and regulatory compliance. Gauging is the determination of the quantity and the proof of distilled spirits (and, where applicable, wine or alcoholic flavoring materials). Requirements for gauging are set forth in 27 CFR Part 19, Subpart K-- Gauging, including general gauging requirements, when gauges must be performed, and special rules for particular kinds of gauges. When gauging is required: Spirits, wine, and alcoholic flavoring materials must be gauged when required by a TTB officer, or when they are: (a) Produced and entered for deposit; (b) Filled into packages from storage tanks; (c) Transferred or received in bond; (d) Transferred between operational accounts; (e) Mixed in the manufacture of a distilled spirits product; (f) Mingled under § 19.329 (when wines or spirits of less than 190° of proof are mingled in a tank); (g) Reduced in proof before bottling; (h) Voluntarily destroyed; (i) Removed or withdrawn from bond; (j) Tax determined; (k) Returned to bond; or (l) Denatured. See 27 C.F.R. 19.283, When gauges are required. Resources for accurate gauging: The specific procedures for gauging, including the types of instruments that may be used, can be found in 27 CFR Part 30--Gauging Manual. TTB’s Proofing Videos provide instruction on how to proof your spirits correctly. A helpful way to keep track of gauges is to keep a gauging log with the information required in 27 CFR 19.618, Gauge record. Having a running log makes reporting easier and helps to ensure that you won’t miss a required gauge. Top Tip from a Winery Investigator: The Bottler Gets the COLA
There is often confusion around who must obtain a Certificate of Label Approval (COLA)—particularly when wine is bottled under various business models. The answer: the bottler is responsible for obtaining the COLA prior to bottling. This applies across the board, including these common scenarios: Custom crush: A “custom crush” arrangement involves an agreement or formal contract under which a customer pays a wine producer to produce wine to order, after which the customer markets the wine. In these arrangements, where the producer bottles the wine for the customer, the producer is responsible for obtaining the COLA. The customer, even if they own the grapes or design the label, does not apply for the COLA. Alternating proprietors: Alternating proprietors are independently qualified bonded winery operators who take turns using shared space and equipment. When bottling occurs under such an arrangement, each alternating proprietor who bottles wine is responsible for obtaining a COLA for the wine it bottles. This is true even when proprietors share bottling lines. The responsibility follows the entity that actually bottles the wine—not the host winery. Unlabeled bottles (“Shiners”): Some wineries bottle wine without labels for storage or aging, or to be sent elsewhere for labeling. While regulations require the bottler to obtain a COLA prior to bottling, the labels do not need to be affixed until removal from bonded premises for consumption or sale. These bottles are often referred to as “shiners.” The bottler is responsible for obtaining the COLA—regardless of where the labels will ultimately be applied. When unlabeled bottles are transferred in bond to another bonded wine premises for labeling: - The COLA must accompany the wine so the receiving premises can apply the approved label correctly.
- The transferee’s labeling premises acts as an agent of the bottler, not as the responsible party. The bottler remains accountable for the accuracy of label claims and for ensuring the label is covered by a valid COLA.
- If the wine is simply being transferred for aging and will be returned to the bottler for labeling, the COLA does not need to accompany the shipment—but the bottler still retains full responsibility.
See FAQ W8 for more information on responsibilities when transferring unlabeled bottles or bulk wine in bond. See Industry Circular 08-04 for more information on custom crush arrangements and alternating proprietors. No matter the arrangement—custom crush, alternating proprietors, or handling shiners—remember that the obligation to obtain a COLA always rests with the bottler. Visit Us at the American Craft Spirits Convention! |