Massachusetts DTC Applications – How to Get Started

As ShipCompliant reported earlier this week, the new Direct Wine Shipper License application and advisory were released over this past weekend. The new permit law replaces the existing unworkable direct shipping law in its entirety. See the previous post to read more about how the new laws, in effect starting January 1, 2015, apply to wineries.

It is expected to take approximately four weeks for applications to be approved. Wineries may NOT engage in any “sales activities” prior to January 1, 2015. (or their license is approved.) Both the Direct Wine Shipper License application and Direct Wine Shipper License Advisory are available on the Wine Institute, ShipCompliant, and Massachusetts Alcoholic Beverages Control Commission (ABCC) websites. Below please find instructions on how to complete the application process. Questions about the application requirements can be directed to Ralph Sacramone of the ABCC at 617-727-3040 ext. 731 or to Annie Bones at abones@wineinstitute.org.

MASSACHUSETTS NEW DIRECT WINE SHIPPER LICENSE APPLICATION INSTRUCTIONS
Step 1: Register with the Department of Revenue to Pay Sales and Excise Taxes

• Go to MassTax Connect to Register and Pay Excise Taxes (note the date of registration as you will need to enter this on the DTC application.)

Step 2: Application for a Direct Shipper Wine License (effective 1/1/2015)
Part 1 – Applicant Information and Legal Structure

• Attach vote by the Board of Directors or LLC Managers appointing a manager or principal representative
• Articles of Organization as filed with the Secretary of State’s Office

Part 2 – Licenses to Manufacture and Export Wine

• List and attach a copy of your California 02 Winegrower license

Part 3 – Federal Compliance

• List and attach a copy of your TTB Basic Permit Number
• List and attach a copy of your FDA Registration

Part 4 – Tax Registration

• Enter the date that you registered with the MA Department of Revenue to pay sales and excise taxes

Part 5 – Interests in this License

• All of the limited partners must be listed

Parts 6-8

• Follow the application’s instructions and provide affidavit(s) if necessary

Part 9 – Previously Held Interests in Other Licenses

• All of previously held interests must be listed

Part 10 – Transportation and Delivery

• FedEx Ground should be listed. FedEx Express and UPS are not licensed to deliver DTC wine shipments to MA consumers at this time. The application can be updated by letter if FedEx Express, UPS or any other common carrier enters the market and intend to use their services.

Part 11 – Proof of Age for Sale to Consumers

• The Code for Direct Shipping Guidelines (http://freethegrapes.org/code-for-direct-shipping) recommends that direct shippers verify the purchaser’s age at the point of online purchase using an approved age verification vendor, such as LexisNexis or IDology.

Part 12 – Proof of Age for Delivery to Consumers
FedEx Ground Control Processes for Alcohol Shipments: FedEx Ground requires Alcohol Shippers to sign a special contract addendum outlining labeling and information requirements

Shippers must use FedEx® ShipManager electronic shipping solutions or an approved third-party system

Shippers must enter a unique identifier – $AW, in the “Your Reference” field for all wine shipments

Shippers must select Adult Signature Service as a condition of delivery of the shipment

All wine packages must be labeled with a FedEx approved alcohol label

An Adult Signature Service “code” is embedded in the unique bar code tracking ID

Delivery scanners alert drivers of the adults signature requirement at point of delivery scan

If no eligible recipient is at the address, the scanner prompts driver to apply the proper status code and reattempt delivery at a later time/date

FedEx will obtain a signature from any person at least 21 years old (government-issued photo identification required) at the delivery address

Part 13

• Follow the application’s instructions

Step 3: Direct Wine Shipper License Application Checklist

• Check payable to ABCC or Commonwealth of MA for $300
• Transmittal Form
• Completed Application
• Articles of Organization as filed with the Secretary of State’s Office
• Vote by the Board of Directors or LLC Managers appointing a manager or principal representative
• A copy of your California 02 Winegrower license
• A copy of your Federal Basic Permit
• A copy of your FDA Registration

Send to:
Alcoholic Beverages Control Commission
P.O. Box 3396
Boston, MA 02241-3396

Annie Bones, State Relations – Wine Institute