Shipping Information
STATES ALLOWING OUT-OF-STATE SUPPLIER SHIPMENTS OF DISTILLED SPIRITS TO CONSUMERS (July 20, 2020)
NOTES REGARDING OTHER STATES:
PENNSYLVANIA: In-state distillers are allowed to direct ship to consumers in the state.
WASHINGTON STATE: Distillery and craft distillery licensees may accept orders by person at their licensed location or by mail, telephone, Internet, or similar methods, and also may deliver to consumers in the state, per RCW § 66.20.410 & WAC § 314-28-100.
SPECIAL COVID-19 RELIEF: CA, CT, MD, MI, MT, NY, OR, and VA are allowing in-state distillers to deliver product to in-state consumers during the Covid-19 emergency.
ALASKA
Out-of-state suppliers may ship product to state residents; no state regulation of out-of-state shippers or product imported into the state for personal consumption and not for resale. But over 75 localities have banned the importation or possession of product and it may be a felony to ship product to those communities. Alaska Alcohol & Marijuana Control Office Website, “Trade Practices” (and the linked statement of James C. Hoelscher, Investigator IV, Enforcement Unit Supervisor).
ARIZONA
A distiller in the U.S. or in a U.S. territory or possession that holds an Arizona craft distiller license (limit of 20,000 total proof gallons of finished distilled spirits/calendar year production for the licensee and all commonly controlled craft distiller licensees) may sell and deliver spirits that it produces to consumers off the licensed premises if the sale or delivery is ordered by telephone, mail, fax, catalogue, the internet, or other means if: the purchaser provided the licensed craft distiller with verification of the purchaser’s legal age and the craft distiller maintains a copy of same in its records; the shipping container is marked to require signature on delivery of an adult of legal purchase age and delivery confirmation; the spirits are for personal use only and not for resale; the spirits are shipped to a residential or business address other than a premises licensed under Arizona alcohol beverages law; the purchaser could have carried the spirits lawfully into or within Arizona; the delivery person is at least 21 years old; and the craft distiller collects payment no later than time of delivery. Ariz. Rev. Stat. §§ 4-101(11) & 4-205.10.
DISTRICT OF COLUMBIA
No public or common carrier shall transport or bring into the District wine, spirits, or beer in a quantity in excess of one case per location in any one calendar month for delivery to any person in the District (other than under a manufacturer, wholesaler, or retailer license). D.C. Code § 25-772(b). Seller without physical presence in the District with gross receipts in previous or current calendar year from all retail sales delivered into the District exceeding $100,000 or 200 or more retail sales delivered into the District required to collect and remit District sales taxes and obtain a certificate of registration. D.C. Code §§ 47-2001(w) & 47-2026 & D.C. Alcoholic Beverage Regulatory Administration at Quick Guide: Out-of-State Suppliers, Manufacturers, Importers
HAWAII
Unlicensed person may obtain permit (1 per household per calendar year limit) for nominal fee to receive 1 shipment of liquor (all alcohol beverages) from outside the state. Limits of 5 gallons (19 liters) or, if unsolicited gift, 3.2 gallons (12 liters); which may be exceeded for liquor capable of aging and originating from grapes or other fruit, if applicant for permit shows that shipment was its personal property prior to date of its permit application, was used and stored outside of state, was part of applicant’s household goods, and originally acquired outside of state, if Commission finds it is reasonable to do so consistent with intent of this statute to allow persons taking up residency in the state free movement of their household goods into this state. Except for unsolicited gift or shipment that falls within above exception to quantity limits, the permit applicant must demonstrate that each brand is otherwise unavailable in the state. Common carrier to whom the permit is presented is authorized to deliver the described shipment to the person named in the permit. Delivery of shipment pursuant to the permit shall not be deemed to constitute a sale in this state. Haw. Rev. Stat. § 281-33.1, Hon. Liq. Reg. § 3-82-33.11 ($18 permit fee) & Maui Liq. Reg. §§ 08-101-44 & 08-101-50(c)(6) ($5 permit fee).
KENTUCKY
H.B. 415 (2020) (effective 7/15/20; but direct shipping licenses will not be issued until the ABC issues implementing regulations and direct ship license application forms, which probably will be no earlier than late 2020) provides that in-state or out-of-state licensed manufacturer, or out-of-state supplier licensed in under KRS § 243.212 (includes manufacturers as well as importers of non-U.S. product that are the primary source of supply) and in its own state, may obtain direct shipping license ($100 annual license fee; certain localities may impose regulatory license fee up to 5% annual gross sales). Limit of 10 liters per consumer per month. Sales may be in person, electronically, online, by mail, or by telephone. Manufacturer may ship product, which is under brand name it owns or has exclusive license, that it produced, was produced for or by the manufacturer under existing written contract with another manufacturer, or was produced and bottled for the manufacturer. Out-of-state manufacturer applicant must prove it completed same registration required for KY manufacturer regarding payment of applicable KY taxes in connection with direct shipment to KY consumers. Direct shipper required to charge applicable KY taxes to consumer as part of selling price (taxes separately identified on invoice); includes sales, use, excise, and wholesale taxes (latter at rate in KRS § 243.884; if wholesale price not readily available, calculated at 70% of retail price), regulatory license fees, and other assessments. Direct shipper licensee shall notify consumer placing order that recipient must provide valid ID verifying over 21 years old to receive shipment; all containers must be conspicuously labeled “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”; at delivery and prior to transferring possession to recipient, recipient shall present valid ID and delivery person shall visually inspect ID and verify recipient’s identity, verify by visual examination or via age verification technology that recipient is at least 21, and obtain recipient’s signature (not required to be person that placed order). Direct shipper licensee shall only ship through common carrier and from licensed premises described in direct shipper license application, and may not sell or ship from its licensed premises to consumer’s address in area in which alcoholic beverages may not be sold or received or if location is licensed premises (and consumer may not be KY ABC licensee or permittee). Consumer subject to fine for intentionally causing shipment to unlawful address; direct shipper and common carrier held harmless. Common carrier must return product to consignor if unable to complete delivery. Common carrier generally not liable if properly licensed and acting on behalf of consignor in course and scope of delivery. Direct shipper required to file quarterly reports; maintain records and allow DOR to access and audit records and inspect licensed premises; appoint and maintain agent for service of process; submit to State jurisdiction; and be subject to causes for license denial, suspension or revocation under KRS §§ 243.100 and 243.500. KRS §§ 243.027 – 243.029.
H.B. 415 (2020) also allows (a) quota retail package licensees to deliver from their licensed premises daily to each consumer, if retailer purchased product from licensed wholesaler or licensees authorized to sell by package at retail (in latter case must be through 3-tier system) and (b) licensed in-state distiller with gift shop or other retail outlet on its premise to sell to visitors on the premise. In both cases, limit of 4.5 liters (9 liters beginning 1/1/21) per consumer daily. KRS §§ 243.240 & 243.0305.
H.B. 415 replaced H.B. 400 (2018), which allowed in- and out-of-state distillers to direct ship to in-state consumers. This law, inter alia, required the customer’s initial purchase to be made in person at the distillery; required direct shipments from in-state distillers to be invoiced from the distiller to the wholesaler and from the wholesaler to the distiller, and all products directly shipped included in the wholesaler’s inventory and depletions for purposes of tax collections; and allowed quota retail package licensees (not out-of-state retailers) to directly deliver or ship to customers. Permit info not available yet.
NEBRASKA
Manufacturer selling and shipping from another state or retailer (which does not also manufacture) licensed out of state may obtain direct shipping license; $500 annual fee. (Note that this license also may be issued to retailer licensed in state.) Applicant must notify Commission of any violation in licensee’s domiciliary state and direct shipping law violations in any state; applicant who is a manufacturer must notify in-state wholesalers offering the same brands that manufacturer has applied for direct shipping license. Direct shipper must collect and remit excise and sales taxes, file reports, maintain records, and allow Commission inspection/examination of premises/records (including paying their employees’ reasonable expenses (not salaries) for same activities if in U.S.); may only ship brands identified in application, which it owns and are registered with TTB; not ship brands that in-state manufacturers or wholesalers have voluntarily agreed not to bring into state at commission’s request; not ship more than 9 liters per month per consumer and sell/ship (only for personal consumption and not resale); utilize only Commission-approved common carriers; and affix conspicuous notice (16-point type or larger) to outside of each package, in conspicuous location, stating: CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY. Recipient must demonstrate upon delivery that he/she is at least 21 and sign electronic or paper form or other Commission-approved acknowledgement of receipt, common carrier must refuse delivery if recipient appears under 21 and refuses to present valid identification, and submit certain information to Commission. Common carrier in violation if delivery to minor; common carrier and direct shipper liable only for their independent acts. Neb. Rev. Stat. §§ 53-123.15 and 53.124.01(11). Separately, a person may import from the holder of retail direct sales shipping license or its equivalent, for personal use or use of person’s family or guests, not exceeding total of 108 liters per calendar year. Neb. Rev. Stat. § 53-194.03.
NEW HAMPSHIRE
Importer, wholesaler and retailer licensed in their state of domicile may obtain direct shipper permit; $500 annual fee (and may request full refund if no direct shipment in 12 months or partial refund if 1-4 direct shipments in 12 months); each shipment must be marked “Alcoholic Beverages adult signature (over 21 years of age) required.” Direct shipper files monthly sales report and pays 8% fee on retail price of shipments by 15th of following month; maintains records for 3 years and permits Commission audit upon reasonable request; limit of 60 containers up to 1 liter each/per consumer in calendar year and, with written approval, additional shipments if product not otherwise available in state; matching amount must be offered to Commission (i) at lower of wholesale price or lowest price delivered into state if direct shipper wishes to ship over 600 liter total per particular product (to any combination of consumers and/or licensees; direct shipper may sell to licensees within certain conditions) or (ii) at wholesale if brand registered with Commission within 2 prior months. Shipment by Commission-licensed carriers, who are required to receive adult signature and not deliver if refusal to accept product and sign, or if person appears under 21. If no adult signature, carrier may hold product for 7 days without Commission approval; refused or undeliverable product may be returned to direct shipper or held for Commission pick up and disposal. Carriers must file delivery report with Commission by 10th of following month and retain adult signatures for 6 months, and provide Commission auditors and investigators with access to licensed areas (without notice) and shipment/delivery/signature records (with reasonable notice). No shipping to dry areas. Direct shipper may retain alcohol consultant ($25 annual fee) to perform educational events and solicit orders; must register consultant with N.H. Secretary of State and notify Commission immediately when consultant ceases to be shipper’s agent. Class B felony and permanent revocation of permit if permittee ships to minor. N.H. Rev. Stat. §§ 178:27 and 178.29; N.H. Liq. Rules Chapter 1100.
NORTH DAKOTA
Person licensed as manufacturer or retailer in its state of domicile may obtain direct shipper license; $50 annual fee; product must be registered with TTB and owned by direct shipper, who also must pay wholesaler excise tax and retailer sales tax; annual excise tax reports due following January 15th; sales and use tax reports due as provided by N.D. Cent. Code § 57-39.6; 9 liters of spirits per month per person limit for personal use and not resale; direct shipper shall use a Commission-licensed carrier and may cause product to be shipped by Commission-licensed logistics company; $100 annual fee for each carrier and logistics company. Direct shipper must label and carrier and logistics company must ensure each package labeled “SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.” Carrier must obtain valid proof of identity and age before delivery and adult signature as a condition of delivery, logistics shipper may not ship from unlicensed direct shipper or through unlicensed carrier, carrier and logistics must maintain records (carrier’s records including, in part, the adult signatures), and both must file monthly reports due last day of month following the shipment. N.D. Cent. Code § 5-01-16.
RHODE ISLAND
Purchaser personally orders at manufacturer’s premise for shipment to a R.I. address for nonbusiness purpose; shipment must include statement that it “Contains Alcohol, Adult Signature (over 21) Required for Delivery.” R.I. Gen. Laws § 3-4-8.
NOTES REGARDING STATES IN THE CHART
CONNECTICUT and HAWAII laws and rules, which apply to all alcohol beverages, impose direct ship permit requirements only upon the in-state consumer (not upon the out-of-state shipper); each state has a separate direct shipping law for wine only, which imposes permitting and other requirements upon out-of-state shippers of wine. Connecticut also requires the consumer order first to be shipped to an in-state distributor, who can provide the product to a consumer. Nevertheless, these states are included in this chart because they provide an avenue for in-state consumers to directly order distilled spirits from out-of-state producers.
NEBRASKA and NORTH DAKOTA also expressly allow out-of-state retailers, and NEW HAMPSHIRE allows out-of-state wholesalers, as well as out-of-state retailers, to direct ship spirit to in-state consumers.
RHODE ISLAND imposes a face-to-face purchase requirement.
ALASKA and WASHINGTON, D.C. do not specify or limit the type of out-of-state entity that that may direct ship alcohol beverages from outside of the state to in-state consumers.