Alcohol and Tobacco Tax and Trade Bureau (TTB), a bureau of the US Department of the Treasury, has amended the rules related to the standardization of identity for distilled spirits to recognize ‘Cachaca’ as a type of rum that is distinctively produced in Brazil.
The final rule that has been published in the Federal Register will be effective from 11 April 2013.
The rule also allows producers to continue using previously approved labels for Cachaca until 26 August 2013, before applying the new standard of identity.
According to Brazilian law, 'Cachaça' is a Brazilian distilled spirits product with 38-48% ABV content and obtained from the distillation of the fermented must of sugar cane.
However, TTB earlier classified Cachaça products as rums under its distilled spirits standards of identity regulations.
This forced government of Brazil to take up the issue with TTB and asked the US to recognize Cachaca as a distinctive product of Brazil.
After discussions among the Brazilian, the Office of the United States Trade Representative and TTB officials, Brazil and the US representative came to an agreement on 9 April 2012 stating the US would recognize Cachaca as product of Brazil and Brazil would recognize Bourbon Whiskey and Tennessee Whiskey as products of the US.
