ShipCompliant Blog

Untangling the complex world of wine direct shipping and compliance

Archive for May, 2008

Arizona Confirms a Minor Change to its Direct-To-Consumer Law

May 6th, 2008
By Annie Bones, State Relations - Wine Institute

The Arizona Department of Liquor Licenses & Control has confirmed a minor change to its direct-to-consumer wine shipping regulations, effective immediately. Under the original interpretation of the direct shipping law Arizona residents could not receive direct-to-consumer wine shipments unless they purchased the wine on-site, and shipments did not exceed 2 cases per consumer per year.

The new interpretation of the law allows wineries to ship to Arizona consumers, as long as the consumer has physically visited the winery at anytime during the calendar year prior to placing the order. Now Arizona consumers who have visited the winery may place off-site orders and have multiple shipments of wine sent to them so long as the combined shipment (throughout the calendar year) does not exceed the 2 case limit. If Arizona consumers wish to have additional wine shipped to themselves in subsequent years, they will need to physically visit the winery each and every year. There continues to be no reporting, tax or permit requirements under the “on-site shipping law”.

Please visit the Wine Institute website for additional information about shipping to Arizona s or contact Annie Bones, State Relations Coordinator, Wine Institute, at 415-356-7530 or abones@wineinstitute.org.

*The rules and requirements for wineries producing up to 20,000 gallons of wine in a calendar year with an approved direct-to-consumer permit/ self-distribution license are not affected by this change.

Annie Bones, State Relations – Wine Institute

Florida escapes capacity cap at the wire

May 4th, 2008
By Jeff Carroll - VP of Compliance, ShipCompliant

It came down to the wire, but the always heated battle in Florida ended with the legislative session closing on Friday with no bills making it out of the state congress. Multiple bills were considered for wine direct shipping, most of which included a “capacity cap” on annual production for wine shippers. The major winery associations opposed all bills that included a capacity cap, and were therefore mostly pleased when the final bell rang without the passage of a restrictive bill. This was a truly classic battle between winery associations and the powerful wine wholesaler lobby.

Lacking legislation that would have created a permit system, the Florida Department of Business and Professional Regulation (DBPR) will likely maintain the status quo, meaning that wineries can ship to Florida without a permit as long as they remit excise taxes and do not ship to dry counties.

The scene at the Direct to Consumer Symposium in Napa on Friday was very interesting. Many attendees were listening to the “state of the states” update on direct shipping legislation, while we simultaneously received updates on the status of the session in Florida. Much of the two day event covered the subject of capacity caps, which have become an extremely hot topic of late. The Family Winemakers of California are currently making their case against the State of Massachusetts that production caps are unconstitutional. The action heats up again at the end of July.