TTB Issues Final Rule Designating Cachaça as Type of Rum

The Alcohol and Tobacco Tax and Trade Bureau (TTB) has issued a final rule designating “Cachaça” as a type of rum and a distinctive product of Brazil. Effective April 11, 2013, the final rule recognizes Cachaça as a distinctive distilled spirit made from sugar cane “in compliance with the laws of Brazil regulating the manufacture of Cachaça for consumption in that country.” In return, the Brazilian officials who petitioned TTB and the U.S. Office of the Trade Representative for the designation have reportedly agreed to recognize bourbon whiskey and Tennessee whiskey as distinctive products of the United States.

Under the final rule, products that meet the identity standards for Cachaça may be labeled as such and no longer need to include the term “rum” on the packaging. In addition, TTB has noted that distilled spirits containing corn or corn syrup will not be recognized as either rum or Cachaça and must continue to use “distinctive or fanciful names, as well as statements of composition,” that do not reference this class or type of product. Additional details about the Cachaça designation appear in Issue 438 of this Update. See Federal Register, February 25, 2013.