The Tax and Trade Bureau (TTB) has issued Industry Circular 2019-1, Hemp Ingredients in Alcohol Beverage Formulas, addressing the ability of industry members to produce alcohol beverages containing ingredients derived from hemp, such as cannabidiol (CBD). The circular explains current TTB policy on the use of hemp and discusses the critical role of the U.S. Food and Drug Administration (FDA) regarding these issues.

• TTB will require a formula for any product containing a hemp-derived ingredient
• TTB will not approve a formula for any product containing a Schedule I controlled substance under the Controlled Substances Act
• TTB will not approve a formula for any product containing CBD until FDA changes its current position towards CBD as a food ingredient. FDA currently views interstate commerce in any food containing CBD as a violation of the federal Food, Drug & Cosmetic Act
• TTB will continue to approve formulas for alcohol beverages containing ingredients derived from hemp seeds and hemp oil
• TTB will not approve a formula for any product containing a hemp ingredient other than those derived from hemp seeds or oil unless it also receives adequate evidence that FDA deems the ingredient generally recognized as safe (GRAS) for food