TTB Proposes to Update and Relax Regulations on Denatured Alcohol
The Alcohol Tax and Trade Bureau is asking for comments by Aug. 26 on a proposal to update its regulations on denatured alcohol. The proposed rule would reclassify some spirits from “specially denatured alcohol” (SDA) into the less-restrictive “completely denatured alcohol” (CDA) category. It would remove some SDA formulas, and create new general uses for others. TTB’s proposed rule would also amend some general provisions of TTB’s denatured alcohol regulations, including sections on labeling and export. According to TTB, “the proposed amendments would remove unnecessary regulatory burdens on the industrial alcohol industry as well as TTB, and would align the regulations with current industry practice.”
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Unlike other spirits, denatured alcohol, or spirits with additives that make them unfit for human consumption, isn’t subject to excise taxes. TTB approves denaturants, both on a manufacturer-specific basis and through general formulas set forth in its regulations. It regulates specially denatured alcohol more heavily than completely denatured alcohol, because SDA tastes better and is more easily turned into potable alcohol.
Following a review of its regulations, TTB is proposing to remove from its regulations 16 SDA formulas for products that don’t seem to be in use. It is also proposing to reclassify two SDA formulas as CDE formulas: 12-A (27 CFR 21.40) and 35 (27 CFR 21.61), and create several new general-use formulas for SDA spirits. The proposed rule would also make the following changes:
- Relax regulations on materials used in bay rum, alcoholado, and alcoholado-type toilet waters when those products are intended only for export
- Allow use of reagent alcohol in manufacturing, when received from distilled spirits plants and specially denatured spirit (SDS) user or dealer permittees
- Allow containers to have required labeling information etched or printed directly on the container
- Allow exportation of SDS by dealers, in addition to distilled spirits plants
- Allow export of articles that would not be approved for domestic distribution because they are not sufficiently denatured to preclude recovery of potable alcohol
See TTB’s proposed rule for other potential changes, including various clarifying and technical amendments.