Title 26Internal Revenue CodeRelease 119-73

§5388 Designation of wines

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter F— - Bonded and Taxpaid Wine Premises › Part PART III— - CELLAR TREATMENT AND CLASSIFICATION OF WINE › § 5388

Last updated Apr 6, 2026|Official source

Summary

Wines must be labeled, moved, and sold using names that honestly show what they are and where they come from. Regular "standard" wines can be sold under their correct kind and origin. If no common name exists, they must use a truthful statement of what’s in them. Wines that are not standard can only use names that truly describe their makeup and clearly set them apart from standard wines, following the Secretary’s rules. Some place-based names (called semi-generic names) like Angelica, Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock, Retsina, Sauterne, Haut Sauterne, Sherry, and Tokay can be used for wines from other places only if the label also shows the real place of origin right next to the name and the wine meets the standard for that style or what the trade expects. Extra rules limit use for wines from the European Community and for wines sold under brand names; brands may use these names only if the label rules were met and the producer held an approved label or exemption showing that name before March 10, 2006. These semi-generic rules do not apply to wines under 7% or over 24% alcohol, wines sold only outside the United States, or wines that have no brand name.

Full Legal Text

Title 26, §5388

Internal Revenue Code — Source: USLM XML via OLRC

(a)Standard wines may be removed from premises subject to the provisions of this subchapter and be marked, transported, and sold under their proper designation as to kind and origin, or, if there is no such designation known to the trade or consumers, then under a truthful and adequate statement of composition.
(b)Wines other than standard wines may be removed for consumption or sale and be marked, transported, or sold only under such designation as to kind and origin as adequately describes the true composition of such products and as adequately distinguish them from standard wines, as regulations prescribed by the Secretary shall provide.
(c)(1)Semi-generic designations may be used to designate wines of an origin other than that indicated by such name only if—
(A)there appears in direct conjunction therewith an appropriate appellation of origin disclosing the true place of origin of the wine, and
(B)the wine so designated conforms to the standard of identity, if any, for such wine contained in the regulations under this section or, if there is no such standard, to the trade understanding of such class or type.
(2)(A)Except as provided in subparagraph (B), a name of geographic significance, which is also the designation of a class or type of wine, shall be deemed to have become semi-generic only if so found by the Secretary.
(B)The following names shall be treated as semi-generic: Angelica, Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, Tokay.
(3)(A)In the case of any wine to which this paragraph applies—
(i)paragraph (1) shall not apply,
(ii)in the case of wine of the European Community, designations referred to in subparagraph (C)(i) may be used for such wine only if the requirement of subparagraph (B)(ii) is met, and
(iii)in the case any other wine bearing a brand name, or brand name and fanciful name, semi-generic designations may be used for such wine only if the requirements of clauses (i), (ii), and (iii) of subparagraph (B) are met.
(B)(i)The requirement of this clause is met if there appears in direct conjunction with the semi-generic designation an appropriate appellation of origin disclosing the origin of the wine.
(ii)The requirement of this clause is met if the wine conforms to the standard of identity, if any, for such wine contained in the regulations under this section or, if there is no such standard, to the trade understanding of such class or type.
(iii)The requirement of this clause is met if the person, or its successor in interest, using the semi-generic designation held a Certificate of Label Approval or Certificate of Exemption from Label Approval issued by the Secretary for a wine label bearing such brand name, or brand name and fanciful name, before March 10, 2006, on which such semi-generic designation appeared.
(C)(i)Except as provided in clause (ii), this paragraph shall apply to any grape wine which is designated as Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Retsina, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, or Tokay.
(ii)This paragraph shall not apply to wine which—
(I)contains less than 7 percent or more than 24 percent alcohol by volume,
(II)is intended for sale outside the United States, or
(III)does not bear a brand name.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5388, act Aug. 16, 1954, ch. 736, 68A Stat. 672, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2006—Subsec. (c)(3). Pub. L. 109–432 added par. (3). 1997—Subsec. (c). Pub. L. 105–34 added subsec. (c). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2006 Amendment Pub. L. 109–432, div. A, title IV, § 422(b), Dec. 20, 2006, 120 Stat. 2973, provided that: “The

Amendments

made by this section [amending this section] shall apply to wine imported or bottled in the United States on or after the date of enactment of this Act [Dec. 20, 2006].”

Effective Date

of 1997 Amendment Pub. L. 105–34, title IX, § 910(b), Aug. 5, 1997, 111 Stat. 877, provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Aug. 5, 1997].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 5388

Title 26Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73