North Dakota Establishes “Logistics Shippers License”

On April 1, North Dakota Governor Dalrymple signed legislation (SB 2147) into law to permit licensed out-of-state direct shippers’ to use fulfillment warehouses in preparing direct wine shipments into the state. SB 2147 remedies an issue in North Dakota law that resulted in prohibiting the use of fulfillment warehouses by licensed wineries. Wine Institute worked with the North Dakota Tax Commission and key legislators in developing SB 2147 which update state law by establishing a “logistics shipper” license for persons involved in providing fulfillment services on behalf of a licensed direct shipper and requires reporting on those shipments to the North Dakota Tax Commission. It also requires licensed direct shippers to report their use of a licensed logistics shippers’ service. The bill also requires licensure and reporting by “alcohol common carriers” to aid the Tax Commission with ensuring that direct wine shipments are coming from licensed direct and logistics shippers. The cost for the logistic shipper and alcohol common carrier licenses will be $100 annually. These new requirements will become effective on August 1, 2013.