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Online liquor store---Tennessee shipping laws

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samp615

Junior Member
What is the name of your state (only U.S. law)? TN

Here is my situation-

I am a whiskey fan. Recently, here in TN there were some bills passed that allowed small distilleries to create and sell whiskey in stores legally. I noticed that this type of whiskey was selling for a lot of money on Ebay because it was collectable. I sold about 5 bottles on eBay but because they caught on and changed their policy on alcohol I could no longer sell on their website. Afterwards I create a quick, fairly poor designed website, thinking I may get an order or two a week and make some cash. Oddly enough, I have been getting tons of orders. I have selling about 5 bottles a day. I purchase the bottles at retail price from liquor stores, and then sell them and double my money. Not a huge money maker, but still a fun little gig. I've used FedEX, not USPS.

Until recently I didn't even consider how this could be against the law and after some research I saw that I am not alone. It appears that there are numerous online liquor stores, yet after days of research there seems like a lot of grey area. I saw a lot of New York Times article discussing the sale of alcohol and how many people are confused.


Can somebody please explain to me how I can legally create a small online store in TN that sells high end whiskey? Because I am selling a rare product, I usually just buy from liquor stores at retail prices, not wholesale. Is this legal?
 


TheGeekess

Keeper of the Kraken
What is the name of your state (only U.S. law)? TN

Here is my situation-

I am a whiskey fan. Recently, here in TN there were some bills passed that allowed small distilleries to create and sell whiskey in stores legally. I noticed that this type of whiskey was selling for a lot of money on Ebay because it was collectable. I sold about 5 bottles on eBay but because they caught on and changed their policy on alcohol I could no longer sell on their website. Afterwards I create a quick, fairly poor designed website, thinking I may get an order or two a week and make some cash. Oddly enough, I have been getting tons of orders. I have selling about 5 bottles a day. I purchase the bottles at retail price from liquor stores, and then sell them and double my money. Not a huge money maker, but still a fun little gig. I've used FedEX, not USPS.

Until recently I didn't even consider how this could be against the law and after some research I saw that I am not alone. It appears that there are numerous online liquor stores, yet after days of research there seems like a lot of grey area. I saw a lot of New York Times article discussing the sale of alcohol and how many people are confused.


Can somebody please explain to me how I can legally create a small online store in TN that sells high end whiskey? Because I am selling a rare product, I usually just buy from liquor stores at retail prices, not wholesale. Is this legal?
http://www.state.tn.us/revenue/taxguides/alcbevguide.pdf

If you've shipped any of that whiskey into Alabama, you've broken the law. :cool:
Section 28-1-4
Delivery of alcoholic beverages to persons, corporations, etc., within state by out-of-state manufacturers, suppliers, etc.

(a) The words and phrases used in this section shall have the meanings ascribed to them in Section 28-3-1 and any acts amendatory thereof, supplementary thereto or substituted therefor.

(b) It shall be unlawful for common or permit carriers, operators of trucks, buses or other conveyances or out-of-state manufacturers or suppliers to make delivery of any alcoholic beverage from without the State of Alabama to any person, association or corporation within the state, except to the Alabama Alcoholic Beverage Control Board and to manufacturers, importers, wholesalers and warehouses licensed by the Alabama Alcoholic Beverage Control Board to receive the alcoholic beverages so delivered.

(c) Any violation of subsection (a) of this section shall be a misdemeanor, punishable as provided in paragraph (1) of subsection (b) of Section 28-3A-25.

(d) All laws or parts of law which conflict or are inconsistent with this section are hereby repealed, provided, however, the provisions of Section 28-1-3 are excluded.
(Acts 1981, No. 81-768, p. 1320.)
Section 28-1-4

And since the other 49 states are different, you may be breaking those laws, also.

What are the laws in your state: Not every state permits shipments of alcohol to residents so if you live in PA, TX, MA, UT, MD, DE, AR, OK, MT, ME, SD, KY, AK, HI, WV or MS then you can’t have alcohol of any kind delivered to you. There are companies out there that do not adhere to or are not aware of laws from state to state and may be shipping to residents of these states which could land them and possibly even the resident in legal trouble. Even states that do permit shipments of alcohol to residents have certain legal restrictions and requirements that must be met. Some states don’t allow anything with an alcohol content greater than a set percentage and many others put a monthly or annual limit on the amount of alcohol a person or household can receive from out of state retailers.
Who can ship: There are only two legal ways to ship alcohol in the United States. A retailer must be licensed to sell alcohol by a state that permits shipments in and out of that state and must have an alcohol shippers contract with either UPS or FedEx. The US Postal Service does not permit shipments of alcohol. It is illegal for a non-licensed individual to ship alcohol.
Signing for the order: When you buy alcohol online the package should ship with a sticker on each box identifying it as containing alcohol and when either UPS or FedEx show up with the packages there will have to be someone over 21 years of age to sign for receipt of the order. If you think about it, this makes sense otherwise minors might end up in possession of product they shouldn’t have. UPS and FedEx charge each retailer several dollars per box to collect this signature and if by the third attempt no one has been available to sign for the package it is sent back to the retailer.
The Ins and Outs of Shipping Beer
 

TheGeekess

Keeper of the Kraken
Alaska Trade Practices - Alcoholic Beverage Control Board
Alaska does not limit or tax alcoholic beverages brought into this state for personal use and not for resale. Out-of-state suppliers may ship alcoholic beverages to Alaska residents but may not make an offer for sale of alcoholic beverages with-in the state of Alaska. This statutory prohibition extends to print and electronic media intended to be viewed by Alaska residents as well as direct solicitation. This prohibition does not extend to information on web-sites located on ISP servers outside of Alaska. Over 75 Alaska communities have by local option banned the importation or possession of alcoholic beverages. It may be a felony crime to ship alcoholic beverages to those communities. A list of those communities can be found on the Damp/Dry Communities pages of this web site.

Arkansas DFA - Title 2, Subtitle C | Conduct of Business of Manufacturing or Wholesaling Controlled Beverages
...closest I could find: Any person holding a permit to sell controlled beverages at wholesale under any alcoholic beverage control law of the State of Arkansas shall sell such beverages only to a person holding a permit to sell such beverages at retail.

Delaware Title 4 Alcoholic Beverage Control A licensed Delaware importer shall not import alcoholic liquor into the State of Delaware unless said alcoholic liquor is delivered directly from a Delaware licensed supplier by either the supplier, the importer, or common carrier to a licensed Delaware warehouse or warehouses.

Hawaii http://www.co.hawaii.hi.us/liquor/rules.pdf
Any unlicensed adult person desiring a permit to allow the importation of liquor from outside the State pursuant to Chapter 281-33.1, Hawai'i Revised Statutes, shall file an application which shall include an inventory of the liquor to be imported.A fee shall be submitted to the department by the applicant with the application as prescribed in Rule 3-3. This section shall not apply to residents of the state who participate in direct shipments of wine pursuant to state law.residents of the state who participate in direct shipments of wine pursuant to state law.

Kansas http://www.ksrevenue.org/pdf/abckararticle5.pdf
Alcoholic liquor (except beer) transported into state or federal area only by bonded carriers. (a) All alcoholic liquor, except beer, shipped into the state of Kansas shall be transported only by common, contract or private carriers that hold liquor carrier permits issued by the director.

Kentucky http://www.lrc.state.ky.us/KRS/244-00/165.PDF
(1) Except as provided in subsection (2) of this section, it shall be unlawful for any person in the business of selling alcoholic beverages in another state or country to ship or cause to be shipped any alcoholic beverage directly to any Kentucky resident who does not hold a valid wholesaler or distributor license issued by the Commonwealth of Kentucky. (2) A small farm winery located in another state may ship wine to a customer in Kentucky if: (a) The wine is purchased by the customer in person at the winery; (b) The wine is shipped by licensed common carrier; and (c) The amount of wine shipped is limited to two (2) cases per customer per visit.

Maine Bureau of Alcoholic Beverages & Lottery Operations: Alcoholic Beverages
Maine is one of 19 states that regulates beverage alcohol within its borders. By controlling this product, the State is the only entity that may bring liquor into the state.

Maryland Motor Fuel, Alcohol and Tobacco Tax - Alcohol & Tobacco Tax Bureau
While I'm traveling on vacation, how much alcohol can I have shipped back to me? None, except nationally sold wine whereby you must make arrangements to ship the wine to you through a Maryland wholesaler, using a Direct Wine Sellers Permit. Internationally, no alcohol may be shipped back to you, including wine. See Article 2B, Section 16-506 and Section 7.5-104.

Massachusetts Massachusetts Alcoholic Beverages Control Commission (ABCC)
Can an out-of-state supplier/manufacturer (a Certificate of Compliance holder) sell directly to a retailer? No. An out-of-state supplier/manufacturer (a Certificate of Compliance holder) can only sell his or her alcoholic beverages to a wholesaler.

<cite to follow>
 

TheGeekess

Keeper of the Kraken
Michigan http://www.michigan.gov/documents/dleg/FAQs_Illegal_Importation_224505_7.pdf
What is the legal allowance for alcohol products being brought into Michigan? State liquor laws require persons who wish to bring any type of alcoholic beverage into Michigan for personal consumption to obtain prior written approval of the Commission with the following exceptions: - A person of legal age who has been outside the U.S. territorial limits for at least 48 hours and has not brought alcoholic liquor into Michigan during the past 30 days, may bring up to one liter into Michigan without prior approval. - A person of legal age may bring up to 312 ounces of alcoholic liquor that contains less than 21% alcohol by volume (about 24 –12 ounce containers of beer or 12 – 750ml containers of wine) from another state without prior approval.

Mississippi Tobacco, Beer and Alcohol
Can I order wine over the internet to be delivered to my home? No. It is illegal to bring wine into Mississippi and such products will be considered contraband. Note: I'm presuming beer falls into the same category, but wasn't called out specifically in the FAQ.

Montana 16-3-213. Brewers or beer importers not to retail beer -- small brewery exceptions.
16-3-213. Brewers or beer importers not to retail beer -- small brewery exceptions. (1) Except as provided for small breweries in subsection (2), it is unlawful for any brewer or breweries or beer importer to have or own any permit to sell or retail beer at any place or premises. It is the intention of this section to prohibit brewers and beer importers from engaging in the retail sale of beer. This section does not prohibit breweries from selling and delivering beer manufactured by them, in original packages, at either wholesale or retail. (2) (a) For the purposes of this section, a "small brewery" is a brewery that has an annual nationwide production of not less than 100 barrels or more than 10,000 barrels. (b) A small brewery may, at one location for each brewery license, provide samples of beer that were brewed and fermented on the premises in a sample room located on the licensed premises. The samples may be provided with or without charge between the hours of 10 a.m. and 8 p.m. No more than 48 ounces of malt beverage may be sold or given to each individual customer during a business day.

New Hampshire direct_ship T
he New Hampshire State Liquor Commission permits spirits, wine and beer to be shipped into New Hampshire so long as the direct shipper has obtained a permit from the Commission. The permit allows out of state companies to ship alcoholic beverages to citizens as well as Liquor Commission licensees.

Oklahoma http://www.ok.gov/able/documents/T37.pdf
37-505.C.1. Except as otherwise authorized by law, it is unlawful for any manufacturer, wholesaler or retailer of alcoholic beverages, located and doing business from outside this state, to make retail sales of alcoholic beverages to purchasers located in this state or to ship alcoholic beverages sold at retail to persons located in this state.

Pennsylvania hide Direct Shipping
Under the law, only wines that are not available in Pennsylvania may be purchased from a licensed Direct Wine Shipper via the Internet. The PLCB offers approximately 25,000 different wines through its Regular, Specialty, and Special Liquor Order (SLO) merchandise. Before going to a Direct Wine Shipper to order, please check our catalog using the Product Search first. Note: There is no mention of beer in this FAQ; I'm presuming lack of mention in direct shipping means it's not permitted at all.<

Rhode Island http://www.dbr.state.ri.us/documents/divisions/commlicensing/liquor/Commercial_Licensing_Regulation_8.pdf
Rule 19(b)(1): All alcoholic beverages brought into the State of Rhode Island for resale shall be consigned and delivered to a licensed Rhode Island wholesaler.

South Dakota Special Taxes - Miscellaneous Items
State law prohibits on/off-sale licensees from making any delivery of alcoholic beverages outside of the premises described in the alcohol license.

Tennessee Internet Redesign Template
Non-resident sellers license is for wineries or distillers/manufactures inside or outside of Tennessee borders, shipping alcoholic products to Tennessee wholesalers. Note: As another three-tier state, TN requires that manufacturers sell only to wholesalers, who in turn sell through distributors.

Texas TABC Shipping Directly to your Home Address
It is not legal for a person in Texas to order/purchase malt beverages or distilled spirits from an individual or entity outside of Texas and have it shipped into Texas.

Utah Utah Dept of Alcoholic Beverage Control
May I bring alcoholic beverages into Utah? No. Under Utah law "alcoholic beverages" include all hard liquor, spirits, wine and beer. Beer and other malt beverage products that exceed 3.2% alcohol by weight or 4.0% by volume are considered "liquor", and beer with an alcohol content of 3.2% or less is defined as "beer".

Washington State Direct Shipping Laws | Washington State Liquor Control Board
There is no limit on the amount of wine that can be shipped to a Washington consumer. Beer cannot be shipped to consumers.

West Virginia WV Code Chapter 60
§60-6-13. Restrictions on importing into, and transporting liquors in state.
Except as permitted by section six of this article and article eight of this chapter, a person shall not import into, or transport in this state, any alcoholic liquors, unless it is: (1) Consigned to the commission; (2) Transported upon the direction of the commission directly to persons licensed to receive alcoholic liquors at wholesale; or (3) Transported into the state or through the state to persons outside the state upon transportation permits issued by the commissioner.

Why can't I get beer shipped to my state? - Quora
 

TheGeekess

Keeper of the Kraken
Here's just a peek at a few of the items UPS does not ship. That includes any item prohibited by federal, state, provincial or local government in the origin or destination country, biological materials and certain types of hazardous waste, mercury and mercury-containing waste from shippers who do not have an authorized contract with UPS, common fireworks or even human parts.

UPS will ship packages containing alcoholic beverages and some tobacco products to shippers who are licensed and authorized to do so. However, UPS prohibits shipments of cigarettes and alcohol to consumers.
Ask the Expert: Can I ship that? | UPS Compass Shipping Advice Articles

Item 780

Rule
Prohibited or Restricted Articles


Alcoholic Beverages
Only licensed entities may ship alcohol of any type with FedEx. For more information, go to fedex.com/us/wine. Consumers may not ship alcohol.
Licensee to Licensee. FedEx will accept alcohol shipments (beer, wine and spirits) when both the shipper and recipient are either licensed wholesalers, licensed dealers, licensed distributors, licensed manufacturers or licensed importers, subject to additional requirements and all applicable laws and regulations. Contact your FedEx account executive for complete details.
Licensee to Consumer. FedEx will accept wine shipments from licensed entities directly to consumers, subject to additional requirements and all applicable laws and regulations. Contact your FedEx account executive for complete details. Shipments of beer or spirits to consumers are prohibited.
Alcoholic Beverages will not be accepted for shipment to Canada from the U.S.
Prohibited & Restricted Articles | FXF Rules Tariff - FedEx
 

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