Tequila in Mexico", except that it may be diluted with water for bottling in Canada. Similar to the law of Canada, the U.S. law (27 CFR 5.22 (g)) says that tequila must be "manufactured in Mexico in compliance with the laws of Mexico regulating the manufacture of Tequila for consumption in that country". Tequila Tequila () is a regional distilled beverage and type of alcoholic drink made from the blue agave plant, primarily in the area surrounding the city of Tequila, northwest of Guadalajara, and in the Jaliscan Highlands ("Los Altos de Jalisco") of the central western Mexican state of Jalisco.
Tequila ("Reposado") or aged ("Añejo") tequila must be matured in 200-liter (or larger) white oak barrels for at least 2 months for the former, and 12 months for the latter. There are, however, more than 50 different companies producing tequila in the Mexican province of Jalisco, with different maturation times according to the variety of tequila and desired quality of the final product. All companies producing tequila have their aging processes regulated and fiscalized by the Mexican government. The maturation process causes four main chemical transformations to the tequila compounds: (1) decreasing of fusel oils by the char in barrels, which