How safe is that drink? Ensuring product integrity from manufacture through consumption William H. Foster Assistant Administrator, Headquarters Operations March 11, 2008

…a global issue …Progress will require that we work collaboratively, partner with the importing community and state and local government, and reach out to foreign producers, exporters and governments. By doing so, all involved will…benefit from an abundant and safe marketplace. -- Michael O. Leavitt, Secretary, Health and Human Services “Action Plan for Import Safety” November 2007

…requires a global solution “snap shot” vs. “video” 6 building blocks – Common vision Increased accountability, enforcement and deterrence Focus on risks over product life cycle Interoperable systems Culture of collaboration Technological innovation and new science

Strategic framework Prevention Intervention Response

Prevention Prevent harm in the first place

TTB Mission -- Prevention  Collect alcohol and tobacco excise taxes.  Ensure that these products are labeled, advertised, and marketed in accordance with the law.  Administer the laws and regulations in a manner that protects the consumer and the revenue, and promotes voluntary compliance.

Role of Food and Drug Administration (FDA) Approval of ingredients for food products Bioterrorism Act of 2002 Key Provisions:  Food facility registration  Prior notice of importation  Establishment and Maintenance of Records  Administrative Detention of Food For more information go to:

TTB Statutory Authority  Internal Revenue Code (26 U.S.C.):  Chapter 51 (Distilled Spirits, Wine and Beer) and 27 CFR parts 19, 24, and 25  Federal Alcohol Administration Act (27 U.S.C. Chapter 8)  27 CFR parts 1, 4, 5, 7, and 16

Prevention in accordance with IRC …  Classification of alcohol products for excise tax purposes.  Methods of operation for distilleries, wineries, breweries, industrial alcohol producers and users, and importers and exporters.  Regulation of the operations of distilleries, wineries, brewers.  Regulation of the production, packaging, bottling, labeling, and storage requirements related to alcohol beverages.  Issuance of permits and regulation of the operations for importers.

Federal Alcohol Administration Act (FAA Act)…an ounce of prevention Provisions that ensure the integrity of the industry:  Require a permit for those who engage in the business as a producer, importer, or wholesaler;  Issue, suspend, and revoke permits;  Screen permit applicants to prevent persons not likely to comply with the law from entering the trade, including organized crime and terrorists.

FAA Act…prevention, another ounce Provisions that ensure the integrity of the product: Require that importers and bottlers of most alcohol beverages obtain a certificate of label approval (COLA) before selling product in interstate commerce. Prevent misleading labeling and advertising that may result consumer deception regarding the product.

Intervention Intervene when risks are identified

Intervention– TTB Consumer Protection Programs  Product Safety  Alcohol Beverage Formulas  Alcohol Beverage Sampling Program  Consumer Complaints

Response Respond rapidly after harm has occurred In the event that an unsafe product makes its way into domestic commerce, swift action must be taken to limit potential exposure and harm to the American public.

Consumer Protection Programs, continued  Verification of Label Claims  Label Fraud Investigations  Lab Viticultural and Varietal Authentication Program

Producers and importers …bear responsibility for food safety— use wholesome ingredients, produce with best practices, distribute responsibly

Summary Government program keystones Prevention Intervention Response Producer responsibilities Responsible and accountable practices

Questions?