Shipping to out-of-state Customers
Monday, September 29, 2014
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Posted by: Becky Miller
Dear NYSLSA Members: Due to the recent publicity surrounding Empire Wine and shipping to
out-of-state customers, we thought it would be helpful for you to see what
States are legal to ship to and also what the laws state regarding
shipping. Below
are pieces of an article that was published in the Beverage Media. It states
clearly that we cannot ship into a State in violation of that State's laws.
Before we ship we should contact the respective State to find out what, if any,
restrictions they have. The
article also states that there are no specific laws in New York regarding
shipping to another state but if that State is not on the list that allow it,
the retailer broke the law of that specific State in which case, as stated
below, The State Liquor Authority has the right to bring charges for improper
conduct. New
York DOES NOT qualify for States which require reciprocal shipping
agreements because New York does not allow any State to ship in with the only
exception of out-of-state wineries who can ship only the wine of the specific
winery that is doing the shipping. Section
105 (9) of New York’s Alcoholic Beverage Control Law, which governs, licenses
for the sale at retail for off premise consumption provides, "No retail
licensee for off-premises consumption shall deliver any liquors or wines except
in vehicles owned and operated by such licensee, or hired and operated by such
licensee from a trucking or transportation company registered with the liquor
authority, and shall only make such deliveries at the premises of the
purchaser.” The section requires that beverage alcohol be sold and delivered
from the licensed premise in vehicles owned or leased and operated by the
licensee or operated by a trucking company with a trucking permit issued by the
New York State Liquor Authority.
There is no one specific provision in the Alcoholic Beverage Control Law that
prohibits a package store from shipping alcoholic beverages to a consumer
outside of the state. However, Section 53.1 of the New York Alcoholic
Beverage Control Law Regulations provides:
Any license or permit issued pursuant to the Alcoholic
Beverage Control Law may be revoked, canceled or suspended for the following
causes:
…
(n) For improper conduct by the licensee or permittee, and
if a corporation, by an officer, director or person directly or indirectly
owning or controlling 10 percent or more of its stock, or an officer, director
or person directly or indirectly owning or controlling 10 percent or more of
the stock of any parent, affiliate or subsidiary of such licensed corporation,
whether such conduct was on or off the licensed premises, and which conduct is
of such nature that if known to the authority, the authority, in its
discretion, could properly deny the issuance of a permit or license or any
renewal thereof because of the unsatisfactory character and/or fitness of such
person.
In other words, the New York State Liquor Authority may revoke, cancel or
suspend a license if it finds the licensee has engaged in conduct which, in the
Authority’s discretion demonstrates that the licensee lacks the necessary
character and fitness to hold a license.
Under federal law (The Webb Kenyon Act 27 U.S. Code §122) it is illegal to ship
or transport beverage alcohol from one state into another in violation of the
laws of the destination state. Most
states forbid out of state retailers from shipping to consumers in their
state. Moreover, each jurisdiction that permits such sales has its own
rules related to the sale. For instance:
California and New Mexico only allow shipments of two cases of wine per month
to any adult resident in this state provided it comes from states which afford
California licensees and equal reciprocal privilege. New York does not. On the
other hand, in Granholm v Heald (125 S. Ct. 1885) the Supreme Court of the
United States said that such reciprocal privilege provisions are
unconstitutional.
The District of Columbia requires the out of state retailer to obtain an import
permit before it delivers more than one case of beer, wine or spirits to one
person.
North Dakota’s law provides "… an individual twenty-one years of age or
older who imports or transports into this state 7.13 gallons [27 liters] or
less of wine, two hundred eighty-eight fluid ounces [8517.18 milliliters] or
less of beer, or 2.38 gallons [9 liters] or less of any other alcoholic
beverage per month for personal use and not for resale from a person holding a
valid manufacturer’s or retailer’s license issued by the state of its
domicile.”
States that allow shipment of wine to their consumers given the appropriate
conditions and in some cases with an appropriate permit include: Louisiana, New
Hampshire, Virginia, Michigan, Oregon, West Virginia, Missouri, Nebraska, North
Dakota, Idaho, Nevada, California, Alaska, New Mexico and Wyoming.
Before shipping to a consumer in another state, a package store should call the
liquor authority in the destination state and ask. The onus is on the retailer
to make certain it is in compliance with the laws of the state into which it
ships.
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