Table 3.--Ale, porter, stout, and beer: U.S. imports for cont sumption, by principal sources, 1964-68 : : : : Source: Compiled from official statistics of the U.S. Department of Commerce. February 1970 Note.--For the statutory description, see the Tariff Schedules of the United States Annotated (TSUSA-1970). U.S. trade position Over four-fifths of champagne and other sparkling wines consumed in the United States are supplied by domestic production. French champagne and other foreign sparkling wines supply the remainder. ports are small. Ex Description and uses The sparkling wines include effervescent wines made from grapes or other products whether the carbon dioxide gas contained in the wine is produced by (a) secondary fermentation in the bottle, (b) secondary fermentation in other closed containers or bulk tanks before bottling, or (c) injection of carbon dioxide gas as in the production of carbonated wines. For labeling and advertising purposes, regulations of the U.S. Internal Revenue Service (27 CFR 4.21) identify "champagne" as a type of sparkling light, grape wine fermented in glass containers of not greater than 1 gallon capacity, possessing the taste, aroma, and other characteristics attributed to champagne as made in the Champagne district of France. The regulations state that a sparkling light wine having the taste, aroma, and characteristics generally attributed to champagne but not otherwise conforming to the standard for "champagne" may, in addition to but not in lieu of the class designation "sparkling wine," be further designated as "champagne style," "champagne type," or "American (or New York State, California, etc.) champagne-bulk process. "Crackling" wine, "petillant" wine, and "frizzante" wine are also recognized as "sparkling" wine although they contain less carbon dioxide gas than champagne or similar sparkling wine. They include some rose wines from Portugal, some white wines from the Saar and Moselle areas of Germany and from Luxembourg, as well as some red, rose, and white wines from Italy. February 1970 U.S. tariff treatment The column 1 rates of duty applicable to imports (see general headnote 3 in the TSUSA-1970) are as follows: The tabulation above shows the column 1 rate of duty in effect under the TSUS prior to January 1, 1968, and modifications therein as a result of concessions granted by the United States in the sixth round of trade negotiations under the General Agreement on Tariffs and Trade. Only the third and final stages of the annual rate modifications are shown above (see the TSUSA-1970 for the other stages). The average ad valorem equivalent of the specific rate of duty in effect on December 31, 1968, based on dutiable imports during 1968, was 18 percent. On imports valued $6.00 or less per gallon the duty was equivalent to 37.2 percent, and on imports valued over $6.00 per gallon, it was equivalent to 10.9 percent. U.S. internal revenue taxes applicable to domestic wines also apply to wines imported into the United States. On carbonated wines the tax is $2.40 per wine gallon; on champagne and the other sparkling wines the internal revenue tax is $3.40 per wine gallon. U.S. consumption and production The long-term upward trend in U.S. demand for sparkling wine accelerated in the period 1964-68. Annual consumption nearly doubled, from 6.5 million gallons at the beginning of the period to 12.5 million gallons at the end (table 1). The average annual increase was 18 percent, compared with an average of 7.6 percent in the preceding 5 years. Since 1948, annual consumption increased nearly nine-fold. Annual U.S. production increased about 20 percent per year on the average between 1964 and 1968. In 1959-63 the annual average increase was 8 percent. Value of production increased from $28 million in 1964 to $59 million in 1968 (table 1). February 1970 In the production of French champagne, customarily a variety of blends composed of the still wines from particular pressings and various vineyards form the base for individual brands and grades. Four species of low-yielding wine grapes, the Pinot, the Chardonnay, the Arbanne, and the Petit Meslier are eligible for use. The prescribed growing area comprises some 44,000 acres around Rheims, Ay, and Epernay in the Falaises de Champagne, northeast of Paris. In the spring following the vintage, the blended still wine is mixed with a certain amount of sugar dissolved in the same wine, together with a small amount of selected yeast. The product is then bottled and capped to undergo a secondary fermentation. The carbon dioxide resulting from this fermentation suffuses the wine which is then aged on the lees for 2 to 5 years. At the end of the aging period, the accumulated sediment (lees) from the secondary fermentation is carefully worked into the neck of the bottle by the process of "riddling" or "remuage," and then extracted. The loss of volume is made up by a small addition of the same wine ("dosage"), to which sugar has been added in amounts designed to produce the degree of sweetness desired for the particular type of champagne being prepared for the market. The degrees of sweetness are designated as: "brut" (very dry); "extra sec" (dry); "sec" (slightly sweet); "demi-sec" (sweet); "demi-doux" (very sweet); and "doux" (exceptionally sweet). After "dosage," the bottle is corked and the cork secured with a metal capsule and wire muzzle. Production of champagne-type wine elsewhere than in the Champagne district of France varies to some extent from the above procedure. Basic differences are in the types of grapes used and differences in quality and flavor of the grapes depending upon where they are grown; the circumstances under which the secondary fermentation takes place (it may be in bulk tanks rather than in the bottle); the length of time the wine is aged; and the method by which the lees of the secondary fermentation are removed (it may be by transfer of the wine to a tank, followed by filtration and rebottling). February 1970 |