Issue link: http://read.dmtmag.com/i/52520
COMPLIANCE COMPLIANCE DIRECT SHIPPING TERMS Direct-To-Consumer Wine Shipments: wine for a consumer's own personal use and not for resale sent via common carrier and delivered to the consumer's home or office. On-Site: wine shipments made on behalf of a customer who is placing the order while visiting the winery's tasting room. Off-Site: wine shipments made on behalf of a consumer who places the order via phone, fax, or internet. Federal On-Site: In November of 2002, President George W. Bush signed the Department of Justice Appropriations Authorization Act, which included a provision allowing wine, purchased while visiting a winery, to be shipped to another state. Purchases must be in accordance with state law in that the consumer could have legally carried the same amount of wine back on their person as the winery is now able to ship to the consumer. This does not allow the consumer to join a wine club or to make a purchase to be shipped at a later date Common Carrier: FedEx Express, FedEx Ground and UPS are common carriers. Please visit their websites for more information: http://www.fedex.com/us/wine and http://www.ups.com/wine Open States: Simply means that these states have a statutory provision that allows for some form of direct shipment of wine directly to consumers. Capacity Cap: excludes wineries whose annual production exceeds a set amount Permit States: have passed legislation allowing wineries to ship to consumers provided the winery complies with any licensing and reporting requirements. The common provisions of these laws are: • Obtaining a license or permit prior to shipping • Collection and payment of excise and/or sales taxes to the recipient state • Limits on the quantities of the shipments (2 cases per month is the preferred amount) • Packaging requirements to ensure wine is not delivered to underage individuals • Reporting of shipments to the state authorities Reciprocity: Reciprocity is a legislative concept whereby each state is approached to enter into an agreement of terms for shipping wine to consumers. Reciprocity requires the legislative cooperation of other states to recognize a two-way shipment privilege. In its simplest form, a reciprocal law says "a winery in your state can ship to a consumer in my state, only if a winery in my state can ship to a consumer in your state." The Supreme Court ruled in 2005 that reciprocity is a violation of interstate commerce law - This is why states with reciprocal shipping laws transitioned to limited direct/ permit status. As of July 1, 2011 there are no longer any states in the reciprocal category. C-2 The 2012 Vineyard & Winery Management Winedex® www.vwm-online.com