How Importers Can Ship DtC

Delaney McDonald
July 13, 2020

This blog was last updated on December 11, 2024

The beverage alcohol industry has many complicated rules and regulations that vary by state. Even though importers are similar to other members of the “supplier” tier (like wineries and breweries), they are often treated differently in federal and state regulations. This is particularly true when it comes to direct-to-consumer (DtC) wine shipping.

Currently, 46 states permit DtC wine shipping, but most restrict the necessary licenses to only businesses that hold both TTB-issued Basic Permits and a wine production license issued by their home state. About 15 allow retailer licensees to ship wine DtC, 10 allow beer shipping, and four allow shipping by spirit producers and retailers. However, importers, who on their own do not qualify as either a “producer” or a “retailer,” are almost entirely excluded from states’ DtC laws, preventing them from getting the necessary licenses.

How can importers start shipping wine DtC?

  1. Importers can become licensed wine producers. To get access to the option of DtC wine shipping, importers can become licensed wine producers. Under this method, the importer can receive a DtC license and ship wine DtC that they produce themselves. With this option, importers will still have to contend with various states’ wine production and DtC shipping laws. Not all states have these laws, but many do and enforce them heavily.
  2. Importers can get a retail license in addition to their importer license in the states they operate in, then ship DtC to other states that permit DtC shipping by retailers. In some states there are trade restrictions which make this unavailable to importers. And, in some states if you have a retailer license, you must also open a physical store and offer inventory to your walk-in customers.
These options are not available for all importers in all states. There are many trade practice restrictions that limit when a licensee can own multiple licenses in a state, particularly when it comes to cross-tier licensing (i.e. being both a “supplier” and a “retailer”.) While there are cases where someone licensed as an importer can also receive and hold a wine-manufacturing or wine-retailing license in a state, it is far from universal and so importers should proceed with extreme caution when looking into these options.

Importers’ DtC shipping options remain limited

Although there has been significant effort to allow importers to have the same permissions that wine producers have been enjoying—until the laws are amended, importers will continue to have a limited DtC shipping map.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Delaney McDonald

Share this post

alcohol deliveries
North America ShipCompliant
December 20, 2024
What if No One is Home to Sign for an Alcohol Delivery?

This blog was last updated on December 20, 2024 When no one is home to sign for an alcohol delivery, it becomes more than just a minor hiccup for direct-to-consumer (DtC) alcohol shippers. It’s a domino effect that transforms a perfectly curated product into a customer’s disappointment before it’s ever opened. This becomes an even […]

taxation of motor insurance policies france
North America VAT & Fiscal Reporting
December 18, 2024
Taxation of Motor Insurance Policies: France

This blog was last updated on December 18, 2024 France is one of the most challenging countries in Europe when it comes to the premium tax treatment of motor insurance policies. This is mainly due to the variety of taxes and charges that can apply and the differing treatment of different vehicle types. This blog […]

california bottle bill compliance
North America ShipCompliant
December 13, 2024
California Bottle Bill: Compliance Updates for Wine and Spirits

This blog was last updated on December 16, 2024 California’s bottle bill got a major upgrade earlier this year, and it’s changed the rules for wineries, distilleries and beverage distributors in a big way. For the first time, wine and spirits manufacturers will need to register with CalRecycle, report sales and pay California Redemption Value […]

unclaimed property compliance for wineries
North America ShipCompliant
December 12, 2024
Unclaimed Property Compliance: What Wineries and Wine Clubs Need to Know

This blog was last updated on December 12, 2024 Although hard to believe, unclaimed property obligations impact ALL industries, including wineries and other wine clubs. While most companies typically only associate unclaimed property with outstanding checks, including accounts payable and payroll, there are other exposures for wineries and wine clubs to consider. Understanding these risks […]

retail delivery fees for alcohol shipping
North America ShipCompliant
December 5, 2024
Navigating Retail Delivery Fees: A Guide for DtC Alcohol Sellers

This blog was last updated on December 5, 2024 Direct-to-consumer (DtC) alcohol shippers are no strangers to navigating a complex regulatory landscape. However, recently, a new challenge has emerged—the rise of retail delivery fees. From excise taxes to shipping restrictions, the industry has long dealt with a maze of state-specific rules that require careful attention […]