North Dakota Licensing Changes for DTC Shippers, Winery Self-Distribution, Fulfillment Warehouses & Common Carriers
New license forms for logistics shippers, alcohol carriers and self-distribution are now available on the North Dakota Tax Commission’s website, along with a revised application for winery DTC shippers. Beginning August 1, 2013 direct shippers are allowed to use a fulfillment warehouse holding a logistics shipper permit to prepare shipments to ND consumers. Direct shipper licensees are now responsible for ensuring that any fulfillment warehouse they use holds a logistic shippers permit, and must now identify their logistics shipper on their annual report. Additionally, common carriers must now have an Alcohol Carrier license issued by the North Dakota Tax Commission in order to transport direct-to-consumer shipments. The fulfillment warehouses and common carriers are now required to file monthly reports. Both fedEx and UPS have been deemed “licensed” for 2013 as alcohol shippers by ND.
Read more for information regarding the new self-distribution licenses and winery DTC licensing changes:
Another new law allows wineries producing no more than 50,000 gallons a calendar year to hold an “Out-Of-State Winery License to Sell Direct to ND Retailers”. This new license will allow an out-of-state winery to self-distribute to both ND retailers, bars and restaurants. Licensed wineries may either use their own trucks, a common carrier, or contract with a wholesaler for delivery. If using their own vehicle, no more than 4,500 cases may be self-distributed. Individual shipments via common carrier may not exceed 3 cases per day to a retailer licensee, and may not exceed 4,500 cases annually in the aggregate. Wineries selling direct to ND retail accounts are required to file an Out-of-State Winery Annual Liquor Tax Report for Direct to Retailer Sales (Schedule N) annually.
Also North Dakota’s Alcohol Beverage Direct Shipping license application for DTC consumer shipments has been updated. Wineries applying for a new direct shipping license or renewing an existing license now have to submit copies of their state and federal winery licenses with their application. [Note: In ND, “liquor” is defined as any alcoholic beverage except beer. When completing the direct shipping application wineries should select the box labeled “Liquor.”] Wineries licensed to ship to ND must pay ND sales and excise taxes and submit an Annual Direct Shippers Liquor Report (Schedule H) by January 15 of the year following the year of the sale.
The ND application and reporting forms are available on the Wine Institute and North Dakota Tax Commission’s website. Should you have any questions regarding the new laws please contact Wine Institute’s State Relations Department at 415-356-7530.