What rules apply if I use a winemaking kit to produce wine for sale?
TTB regulates the commercial production of wine under the Internal Revenue Code of 1986 (IRC) and the Federal Alcohol Administration (FAA) Act laws and regulations. These laws and regulations require that wine producers qualify their premises as a bonded wine cellar, obtain an FAA Act basic permit as a producer of wine, pay the applicable excise tax on wine between one-half of 1 percent to 24 percent of alcohol by volume, and receive a Certificate of Label Approval (COLA) for all wine that is bottled. The IRC and FAA Act requirements apply to those who are engaged in the business of winemaking who intend to sell the wine or distribute it for commercial purposes, and apply equally to companies using kits and traditional winemaking materials. Information provided on the labels of all wine made for commercial purposes must be truthful and must adequately inform the consumer about the identity and quality of the product.
