Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 63-71

1963-1 C.B. 400

IRS Headnote

Only caramel may be used as a coloring material by winemakers in the production of vermouths, aperitif wines, or other special natural wines.

Where formulas specify the use of other coloring materials, a new Form 698-Supplemental, Formulas and Process for Wine, must be filed with the Director, Alcohol and Tobacco Tax Division, deleting such coloring materials, or riders may be filed amending the formulas to delete the use of these ingredients.

Full Text

Rev. Rul. 63-71

Advice has been requested whether winemakers may use coloring materials other than caramel in the production of vermouths, aperitif wines, or other special natural wines.

Alkanet root and root extract, annatto extract and seed Carmine, cochineal, cudbear and cudbear extract, logwood chips extract, and American saffron (carthamus tinctorius L.) have been reclassified as color additives by the Food and Drug Administration of the Department of Health, Education, and Welfare.

Section 5386(a) of the Code authorizes the production of special natural wines on bonded wine cellar premises from a base of natural wine with the addition, before, during or after fermentation, of natural herbs, spices, fruit juices, aromatics, essences, and other natural flavorings; and with or without the addition, separately or in combination, of pure dry sugar or a solution of pure dry sugar and water, or caramel.

Section 240.440 of the Wine regulations provides in part that in addition to flavoring materials, caramel may be added for coloring.

Since section 5386(a) of the Code and the regulations thereunder do not authorize the addition of coloring materials, except caramel, in the production of special natural wines, it is held that winemakers may not use the coloring materials specified above or any coloring material other than caramel in producing vermouths, aperitif wines, or other special natural wines.

Further, where formulas specify the use of any of the specified coloring materials or any coloring material except caramel, a new Form 698-Supplemental, Formulas and Process for Wine, must be filed deleting such coloring materials. Alternatively, riders may be filed amending the formulas to delete the use of these ingredients. The riders should be filed in triplicate with the Director, Alcohol and Tobacco Tax Division, showing (1) the name and registry number of the bonded wine cellar premises, (2) the original formula number, (3) the date of approval of the original formula, (4) the name of the product involved, and (5) the substance which is being eliminated.