[1] TTB was created on January 24, 2003, when the Homeland Security Act of 2002 split the Bureau of Alcohol, Tobacco and Firearms (ATF) into two new organizations with separate functions.

ATF's other functions, dealing with tax collection and regulation of legitimate trade, remained within the Treasury Department and became part of the new TTB.

TTB's Field Operations are organized into five divisions:[3] The Advertising, Labeling, and Formulation Division (ALFD) implements and enforces a broad range of statutory and compliance provisions of the Internal Revenue Code and the Federal Alcohol Administration Act.

ALFD acts on these COLAs to ensure that products are labeled in accordance with federal laws and regulations.

ALFD also examines formulas for wine and distilled spirits, statements of process, and pre-import applications filed by importers and proprietors of domestic distilleries, wineries, and breweries for proper tax classification and to ensure that the products are manufactured in accordance with federal laws and regulations.