Wine and Spirit Imports

[boyanowski]

What is the name of your state (only U.S. law)? PA

Hello, I am looking to open an import/export business. I currently live in Pennsylvania near the New York border, So both states are a possibility. My business would mainly involve importing wine and other spirits from Europe. Since alcohol is handled differently in each state; which state or states would be best for me to use as a distribution hub (meaning lax law on distribution and taxation)? Secondly can I incorporate in a state such as Wyoming, but have my storage and operations in another state?
Thank you for your help.

 

[quincy]

What is the name of your state (only U.S. law)? PA

Hello, I am looking to open an import/export business. I currently live in Pennsylvania near the New York border, So both states are a possibility. My business would mainly involve importing wine and other spirits from Europe. Since alcohol is handled differently in each state; which state or states would be best for me to use as a distribution hub (meaning lax law on distribution and taxation)? Secondly can I incorporate in a state such as Wyoming, but have my storage and operations in another state?
Thank you for your help.

My first recommendation to you is that you avoid opening an import/export business in New York. Their ABC laws are among the worst in the country.

My second recommendation to you is that you sit down with a professional in Pennsylvania for a review of your business plans. An online forum is not going to be able to provide you with the advice and direction you will need.

 

[FlyingRon]

Actually, I'm going to take issue with Quincy here. State law is not likely to be the problem as an IMPORTER (other than typical business rules). The state alcohol control laws primarily target the retailers (stores, restaurants) rather than the importer. Your concerns with importing are largely FEDERAL.

You need to do some real research and probably get a consultant or lawyer who is well versed in ATF issues. Understand that EVERY item you import has to be approved. You're going to have to submit the original label and your additional back label that contains your information as importer as well as the usual government health warnings and other information not found on the producer's label to the TTB for approval. Believe me, I've been through the TTB procedure on a few wines I have produced in the US. It can be annoying. Of course, you're going to also have to deal with paying the duties and excise taxes on what you import.

You do understand that you won't be selling to consumer outlets (retail stores, restaurnants), right? In the archaic triple tier system in the US, your customer must be a distributor (in fact, you'll need to have contracts with distributors for each state you wish to have your products sold in...this is where state law really comes in).

This is not an easy business to be in.

 

[boyanowski]

Thank you Ron,
I do realize that there are quite a few issues I will have to deal with. In Pennsylvania I will have to sell directly to the state store and not bars and restaurants. Of course I will have to pay duties no matter where I import to since that is a federal issue. I guess what I am asking is: Is there any advantage or disadvantage from one state to the other?
Thank you

 

[quincy]

Thank you Ron,
I do realize that there are quite a few issues I will have to deal with. In Pennsylvania I will have to sell directly to the state store and not bars and restaurants. Of course I will have to pay duties no matter where I import to since that is a federal issue. I guess what I am asking is: Is there any advantage or disadvantage from one state to the other?
Thank you

While there are federal regulations that must be adhered to by all, every state has their own importation requirements that an importer must meet. New York's requirements are not (I have found) as friendly to an importer as other states can be.

Here are links to both New York's Liquor Authority and Pennsylvania's Liquor Control Board. You can compare and contrast and then, as recommended earlier, you can seek out the help of a professional in your area for a thorough analysis of the pros and cons of each. Good luck.

http://www.sla.ny.gov/

http://www.lcb.state.pa.us/PLCB/index.htm

 

[FlyingRon]

Thank you Ron,
I do realize that there are quite a few issues I will have to deal with. In Pennsylvania I will have to sell directly to the state store and not bars and restaurants. Of course I will have to pay duties no matter where I import to since that is a federal issue. I guess what I am asking is: Is there any advantage or disadvantage from one state to the other?
Thank you

It is more than DUTIES. You must be specifically licensed by the feds to be an importer (it's tantamount to actually producing the spirits yourself in their eyes). In addition to the license, there are specific other approvals over and above paying duty (there's not only duty but taxes to be paid).

First you have to decide if you are an importer (which is all you can be in Pennsylvania and certain other states) or an importer and distributor. If you want to distribute within a state, you must comply with all the laws in taht particular state. It really makes little difference where you are based. If you sell in NY you have as much problem as a Pennsylvania company as you were if you were an NY company and vice versa. You're pretty much subservient to the alcohol regulators in each state.

 

[quincy]

... It really makes little difference where you are based. If you sell in NY you have as much problem as a Pennsylvania company as you were if you were an NY company and vice versa. You're pretty much subservient to the alcohol regulators in each state.

Here is where I take some issue with what you say, FlyingRon.

It is because an importer is constrained by the regulations of their state that it will make a difference where the importer is located. The difference comes not from the federal laws common to all but from the state laws, of which New York's are a mess.

But boyanowski will want to go over all of his plans with a professional in his area, to discuss what exactly it is he wants to do and, from there, determine how best to accomplish it.