To all wineries
From the Wine Institute
All – Wine Institute just issued the following update about a possible suspension of federal government funding and activities unless Congress enacts a short-term funding bill by midnight on September 30. Feel free to share with your respective members and urge them to file any mandatory applications for labels, permit amendments, export certificates and the like in advance of September 30. TTB in particular will be unable to review and process submissions or communicate with industry in the event of a government shutdown although excise taxes will be due on a timely basis during this time.
Growing Risk of TTB Closure During Potential Government Shutdown
Disagreement Remains over Federal Government Funding as Sept. 30 Deadline Approaches
As Congress returns from its August recess to address a host of outstanding issues, none is more pressing than the need to pass a new federal government funding resolution before the current one expires on Sept. 30, 2023. In previous years this has been a relatively straightforward process, however the contentious environment in Congress and strong disagreement over federal funding priorities have complicated the process significantly. Congressional leaders have no clear path forward at this time, leading to growing concern that a government shutdown is likely to occur this fall, potentially as soon as Oct. 1, 2023.
Wineries are advised that in the event of a government shutdown, the Alcohol and Tobacco Tax and Trade Bureau (TTB) would be closed except for very limited activities related to the protection of life and property. For the duration of any shutdown, TTB would not process or work on any Certificate of Label Approval (COLA) applications, formula approvals, permit applications or laboratory service requests. At this point, it is not possible to predict the duration or exact time of a shutdown if one happens. The last government shutdown took place from December 2018 to January 2019 and TTB was closed for 35 days. Significant backlogs and delays in certain approval processes occurred after TTB reopened.
Wine Institute continues to communicate regularly with Congressional offices to advocate against any government shutdown and highlight the potential negative consequences it could have on our sector. We will continue to share updates with members as warranted.
Contact Wine Institute’s Federal team
- Posted in: Monday memo
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