Rev. Proc. 61-8

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth the restrictions of the British Customs and Excise regulations relating to the labeling of Scotch whisky and Irish whisky produced in Northern Ireland.

SEC. 2. BACKGROUND.

.01 The Code of Customs and Excise Warehousing Regulations administered in Great Britain, under certain conditions, authorize statements in labeling to the effect that Scotch whisky and Northern Irish whisky, bottled in the United Kingdom, have been `Distilled in Scotland (or Northern Ireland) and bottled in the United Kingdom under Government Supervision.' There is no authority under British regulations for the use of this statement, or any variation thereof, with respect to Scotch whisky and Irish whisky (produced in Northern Ireland) not bottled in the United Kingdom. Hence, under Section 5.41(b) of the Distilled Spirits Labeling and Advertising Regulations under the Federal Alcohol Administration Act, the statement would be prohibited from appearing on labels of Scotch whisky and Northern Irish whisky bottled in the United States after importation. See Rev. Rul. 61-15, page 849, this Bulletin.

.02 Several months ago, the attention of the Internal Revenue Service was directed to the requirements of the British regulations and to the application of section 5.41(b) of the regulations in this regard. Since that time, as applications for label approval have been submitted covering labels in this category, applicants have been advised that the use of the labels would be permitted until December 31, 1960, but that after such date, the labels must be amended by deleting all references to `Government Supervision.' However, the Service has now been informed that many of the labels in question are printed in England and that deliveries of the amended labels could not be made by the end of 1960.

SEC. 3. CONCLUSION.

.01 In view of these circumstances and in order to permit an orderly transition, all certificates of approval covering labels bearing the objectionable wording, whether or not limited to December 31, 1960, may be considered effective until May 31, 1961.

.02 All bottlers of distilled spirits who utilize labels for Scotch whisky and Irish whiskies, bearing references to distillation or blending under Government supervision, should make all necessary labeling corrections and obtain new certificates of label approval before May 31, 1961. After that date, all certificates of approval heretofore issued by the Internal Revenue Service covering the old labels, whether or not such certificates are limited, should be returned for cancellation.

SEC. 4. INQUIRIES.

Correspondence in regard to this Revenue Procedure should refer to its number and be addressed to the Director, Alcohol and Tobacco Tax (Attention:O:AT:BT), Washington 25, D.C.