Even though about 75 percent of grapes or concentrated grape juice used to make Japanese wine are imported, such wine is considered to be domestically produced. Wineries that use only domestically harvested grapes welcome the new standard as they believe it will promote Japanese wines.

According to the tax agency, the trading volume of domestic and imported wine in Japan was 365,000 kiloliters in fiscal 2013, up for the seventh consecutive year. The 2013 figure is the second largest on record following the 369,000 kiloliters traded in fiscal 1998, when a red wine boom occurred, a sign that wines are penetrating general households.

In Europe, where wine culture has a long history, laws require labels to show the varieties and production areas of grapes. In contrast, Japan's liquor tax law has no such stipulation.

Although the Japan Wineries Association and other groups have set up a guideline that suggests specifying on labels whether materials from overseas are used, it is not binding.

A National Tax Agency official said, "It [the new standard] will make it easier for consumers to distinguish these wines and also help winemakers promote their products overseas."