1513-0020 Ss

-4-

DEPARTMENT OF THE TREASURY

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

Supporting Statement - Information Collection Request

OMB Control Number 1513-0020

TTB F 5100.31 Application for and Certification/Exemption of Label/Bottle

Approval

A. JUSTIFICATION

1. What are the circumstances that make this collection of information

necessary and what legal or administrative requirements necessitate the collection?

27 U.S.C. 205(e) and implementing regulations at 27 CFR:

4.40 5.51 7.40 19.641 24.255 25.142

4.50 5.55 7.41 19.642 24.257 26.39

4.51 7.30 7.42 19.643 24.258 26.314

4.52 7.31 19.633 19.645 25.141

mandate the labeling of alcohol beverages (wine, distilled spirits, and malt beverages) to provide consumers with adequate information as to the identity and quality of the product and prevent consumer deception.

Under the statute, labels must be approved prior to use. U.S. bottlers and importers cannot bottle or import alcohol beverages without the mandated label approval. TTB F 5100.31 is a dual-purposed form, used to request and obtain the required label approval. This form serves as both an application and certificate or exemption from a certificate.

Label applications are prepared by the entity that will bottle or package the wine, distilled spirits, or malt beverage. For imported items, the U.S. importer prepares the application. Completed applications are submitted to TTB’s Advertising, Labeling and Formulation Division (ALFD) for review, analysis, determination of compliance with all statutory and regulatory requirements and issuance or non-issuance of a certificate or exemption.

Regardless of the proprietor’s physical location, both paper and electronic applications are reviewed by ALFD staff. By doing so; TTB can ensure consistency in the processing of the applications as well as maintain a centralized automated file that streamline the entire application process. TTB’s database allows for identification and tracking of domestic and imported alcohol beverages. Identification and tracking are critical tools TTB utilizes in their Protect the Public strategic goal.

2. How, by whom and for what purpose is this information used?

The information collected is used to verify the labels affixed to the form and prevent deception. Since each product that is bottled or imported must have its own certificate; it is important to ensure that the application clearly identifies the label. In addition, the information on the form also identifies the class and type of the product which assists in TTB’s tax collection requirements. The information collected is used by several federal and state agencies, as well as the public.

3. To what extent does this collection of information involve the use of

automated, electronic, mechanical, or other technological collection techniques or other forms of information technology? What consideration is given to use information technology to reduce burden?

The information collected on the form is entered into TTB’s COLAs Online database for identification and tracking purposes and upon approval is readily viewable through the online TTB Public COLA Registry.

TTB launched COLAs Online e-applications in May 2003. In addition to maintaining a file of the paper applications that are filed by proprietors, COLAs Online is utilized to file applications electronically. Electronic filing is now responsible for 62% of applications received.

4. What efforts are used to identity duplication? Why can’t any similar

information already available be used or modified for use for the purposes described in Item 2 above?

Under the FAA Act labels must be approved prior to use, and industry members create these labels in accordance with TTB regulations for this purpose. The information is not available from any other source.

5. If this collection of information impacts small businesses or other

small entities, what methods are used to minimize burden?

All entities, regardless of size, are required to provide this information in order for TTB to comply with its obligation under 27 U.S.C 205(e). This requirement cannot be waived simply because the respondent’s business is small.

6. What consequences to Federal program or policy activities and what,

if any technical or legal obstacles to reducing burden will occur if this collection is not conducted or is conducted less frequently?

This information collection is required by statute. Respondents file an application

only as needed to comply with the statute.

7. Are there any special circumstances associated with this information collection?

There are no special circumstances associated with this information collection.

8. What effort was made to notify the general public about this collection

of information?

A 60-day Federal Register notice was published for this information collection on Thursday, September 4, 2008, 73 FR 51699. The notice solicited comments from the general public. TTB received no comments.

9. What decision was made to provide any payment or gift to

respondents, other than reenumeration of contractors or grantees?

No payment or gift is associated with this collection.

10. What assurance of confidentiality was provided to respondents and

what was the basis for the assurance in statute, regulations, or agency policy?

No specific assurance of confidentiality is provided on this form, and approved COLAs are public information and available on TTB’s website. Any proprietary information or tax return information submitted with the application is protected from disclosure under the Internal Revenue Code (26 U.S.C. 6103) and/or exemption under the Freedom of Information Act (5 U.S.C. 552).

11. What justification is there for questions of a sensitive nature?

We ask no questions of a sensitive nature.

12. What is the estimated hour burden of this collection of information?

During a 12 month period 10,982 industry members filed an application for label approval. Based on the number of applications received in that period, it is estimated that each applicant submitted 12.25 applications. Also, it is estimated that an industry member should be able to complete the form in approximately 30 minutes. The total burden is 67,265 hours.

13. What is the estimated total annual cost burden to respondents or

record keepers resulting from this collection of information?

No cost is associated with this collection.

14. What is the annualized cost to the Federal Government?

Estimates of annual cost to the Federal Government are as follows:

Salary for processing 405,000

Imagining, data entry 313,000

Clerical Cost 139,000

Printing $ 1,000

Distribution 500

TOTAL 858,500

15. What is the reason for any program changes or adjustments reported

in Items 13 or 14 of the OMB Form 83-I?

There is an adjustment associated with this collection as a result of an increase in the number of applications submitted per person in a 12 month period.

16. Outline plans for tabulation and publication for collections of

information whose results will be published.

The results of this collection will not be published.

17. If seeking approval to not display the expiration date for OMB

approval of this information collection, what are the reasons that the display would be inappropriate?

We will display the expiration date of OMB approval for this collection.

18. What are the exceptions to the certification statement?

There are no exceptions to the certification statement.

B. Collections of Information Employing Statistical Methods.

This collection does not employ statistical methods.