The economic change in TTB's January 23, 2017 temporary cider rule was a broader eligibility boundary, not a cut in the listed hard-cider rate. The rate remained $0.226 per wine gallon. The amended statutory definition applied to products removed from January 1, opening the category to a wider range only when its conditions were met. [2017-00333][01-29361]

Those conditions included carbonation no greater than 0.64 gram of carbon dioxide per 100 milliliters and alcohol of at least 0.5 percent but strictly below 8.5 percent by volume. Primary apple or pear derivation and fruit restrictions also mattered, subject to specified nonflavoring wine-treatment exceptions. The carbonation denominator is a measurement unit, not the unit used to levy the tax. [2017-00333][01-29361]

A broader category also changes what information identifies it. ATF's 2001 final decision allowed the hard cider name on products above 7 percent alcohol. In 2017, TTB explained that apple table wine and sparkling or carbonated descriptions no longer necessarily resolved tax eligibility. A business could not substitute the commercial name for the classification exercise. [2017-00333][01-29361]

Covered removals beginning January 1, 2018 required Tax class 5041(b)(6) labeling after a transition period. Applicable FAA Act permits and labels were unchanged for wines at or above 7 percent alcohol. The potential commercial opportunity therefore sat beside continuing obligations. The paired government records explain that boundary; they do not prove higher margins, lower shelf prices, stronger sales or a particular competitive response. [2017-00333][01-29361]

Source documents

  1. Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Ciderhttps://www.govinfo.gov/content/pkg/FR-2017-01-23/html/2017-00333.htm
  2. Hard Cider, Semi-Generic Wine Designations, and Wholesale Liquor Dealers’ Signs (97-2523)https://www.govinfo.gov/content/pkg/FR-2001-11-26/html/01-29361.htm