The California Wine Institute has issued an urgent warning to wineries and exporters: the ongoing U.S. federal government shutdown, which began on October 1, has forced the suspension of essential services provided by the Alcohol and Tobacco Tax and Trade Bureau (TTB).
For the wine industry, the shutdown represents more than political gridlock—it halts the administrative functions that keep the sector moving both domestically and internationally.
What the Shutdown Means for Wineries
The TTB plays a central role in regulating and approving processes critical to the wine business. With the agency effectively closed, the following services have been suspended:
- Label certifications (COLAs): No new wine labels can be reviewed or approved.
- Formulas and permits: Applications for new products or business operations are on hold.
- Import/export authorizations: Delays in cross-border transactions could disrupt international trade.
- Permit updates or business changes: Any adjustments to existing licenses remain frozen.
While businesses may continue to submit applications electronically, nothing will move forward until the agency resumes operations.
The Growing Backlog Problem
The California Wine Institute warned that the shutdown will create significant backlogs once the government reopens. Producers and exporters have been advised to avoid duplicate or unnecessary filings to help streamline the clearance process when services are restored.
Tax Obligations Still Apply
Despite the disruption, one area remains unaffected: federal excise taxes. Wineries must continue to pay and file within normal deadlines. The Institute emphasized that compliance with these obligations is critical to avoid penalties during the shutdown.
Uncertainty Ahead
There is no clear timeline for when Congress and the White House will reach a budget agreement, leaving businesses in a state of limbo. The Wine Institute’s Washington, D.C., office is working to support wineries, providing guidance and resources to manage the impact.
The wine industry is far from the only sector hit by the shutdown, but the reliance on TTB services makes the consequences especially acute. Label approvals, permits, and export documentation are not just bureaucratic steps—they are the lifelines of trade and compliance. Without them, wineries face stalled product launches, delayed shipments, and mounting uncertainty in both domestic and global markets.
Source: Vinetur