The Arizona Department of Liquor Licenses and Control (DLLC) has significantly expanded its enforcement efforts to stop illegal direct to consumer shipments coming into the state. In order to legally ship to adult consumers in Arizona a winery must obtain proper Arizona liquor licensing. The two licenses that are available are a Direct-To-Consumer Wine Shipment (series 17W) license or Out-of-State Farm Winery (series 02W – producing up to 20,000 gallons of wine). Note that if an out-of-state farm winery license holder exceeds the 20,000-gallon production limit during the same calendar year it must immediately apply for a series 17W direct-to-consumer wine shipment license in order to continue shipping to consumers in Arizona.
Wineries holding Direct-to-Consumer Wine Shipment (series 17W) are advised to review their procedures to ensure compliance with Arizona’s direct-to-consumer (DTC) law. Specifically, series 17w licensed direct shippers must:
- Verify that online purchasers are at least 21 years of age by either using an age verification service or obtaining a copy of the online purchaser’s government issued photo identification.
- Only sell and ship wines produced by the holder of the direct shipment license.
- Not sell or ship more than 12, nine-liter cases of wine per purchaser per calendar year.
- File an annual report with the DLLC by Jan. 31st of the following year.
It is important to note that that state requires that DTC deliveries must be made only after inspection of a valid photo identification so that the person accepting the delivery demonstrates that he or she is at least 21 years of age. Therefore, such shipments are prohibited from being left at the door of the delivery address. Wine Institute strongly recommends that DTC licensees pay the additional service fee for obtaining an adult signature upon delivery, if it is not already included in the cost of the shipping, to not only help ensure that the common carrier obtains a signature of a person that is 21 years of age and older and provide the licensee with a record showing adherence with this requirement, which is similarly required in most state DTC programs.
In addition, all wineries that hold licenses in Arizona should ensure that the Agent contact information as well as the Compliance contact information associated with their Arizona-issued license are complete and up-to-date. Wineries needing to update or change the Agent or Compliance contact information should contact the DLLC through the e-licensing portal or Maria Garcia at Maria.Garcia@azliquor.gov.
