delete PART 18—PRODUCTION OF VOLATILE FRUIT-FLAVOR CONCENTRATE
Regulates qualification and operation of volatile fruit-flavor concentrate (essence) plants, requiring registration, bonding, recordkeeping, reporting, facility security, and transfer controls to protect federal tax revenue on alcohol content under 26 U.S.C. Chapter 51.
The regulation imposes heavy compliance burdens—registration, bonding, extensive recordkeeping, reporting, and inspections—on a small, specialized industry primarily to protect federal alcohol tax revenue. These costs far outweigh any revenue protection benefit, create barriers to entry protecting incumbents, and represent federal overreach into a niche market that should be regulated, if at all, at the state level. Americans bear these hidden compliance costs through higher prices and reduced economic freedom, while the tax collection objective could be achieved far more efficiently through simpler mechanisms.