Texas & Nebraska Audit DTC Permit Holders

The Texas Alcoholic Beverage Commission (TABC) announced that it will begin conducting audits of Out-of-State Winery Direct Shipper’s permit holders on Sept. 1, 2019 to ensure permittees are in compliance with Texas’ direct-to-consumer law and regulations. While audits are generally conducted at random, permit holders with a history of receiving violations or complaints are more likely to be selected. For more details and a list of steps wineries can take to prepare for a compliance audit, see the recent TABC Industry Notice addressed to Out-of-State Winery Direct Shipper’s Permit holders.

Additionally, Wine Institute has learned that the Nebraska Liquor Control Commission is actively enforcing its direct shipment program. Wineries should review their procedures to ensure they are in compliance. Specifically, wineries should ensure they have a valid (S1) license to ship alcohol direct to consumers in the State of Nebraska, timely and correct sales and excise tax payments and do not ship more than 108 liters (12 cases) to an adult person in any one calendar year.

With the continued growth of the DTC channel, more states are looking to increase resources for the enforcement of interstate direct-to-consumer wine shipments. Members should be mindful that failure to comply with current state shipping laws can have serious consequences and, potentially, put their Federal basic permits at risk. The current direct-to-consumer licensing requirements and compliance rules for wineries by state are available on the Wine Compliance Rules website. For additional information contact Annie Bones in the State Relations Department.