Current through September 24, 2024
(1) Wholesaler
Accountable for Inventory; Methods of Disposition of Alcoholic Beverage
Limited. A wholesaler is strictly accountable for his inventory which he may
deplete in the following manners only:
(a)
Sales to a licensed retailer and to no other person and each sale and delivery
must be covered by an invoice.
(b)
Wholesalers may deplete inventories for personal or training use, for purposes
of contributing to a charitable organization, for marketing, or for use at
educational seminars held pursuant to Rule
0100-03-.11
or held for the benefit of retailer customers of the wholesaler. The wholesaler
shall retain records of all such withdrawals showing the amount of inventory
withdrawn, the purpose of the withdrawal and the employee responsible for such
withdrawal. These records shall be retained in accordance with Rule
0100-03-.13(1).
(c) Broken and deteriorated merchandise
(method of handling set forth in Rule 0100-03-.14(3)).
(d) Courtesy sales from one wholesaler to
another within the state.
(e)
Returned merchandise to the manufacturer or importer.
(2) Consignment and Returns.
(a) No wholesaler shall sell and no retailer
shall accept any alcoholic beverage on consignment, or upon condition, or with
the privilege of return, or on any condition other than a bona fide sale,
except as may be permitted pursuant to Chapter 0100-06.
(b) Novelty containers, commonly known as
Christmas decanters, must be accepted back upon request in exchange for similar
quantity of alcoholic beverages of the same brand and proof in conventional
containers by the wholesaler from the retailer and by the manufacturer from the
wholesaler. Such requests shall not be submitted before January 15 next after
the Christmas season for which such decanters were delivered.
(3) Breakage and Deteriorated
Merchandise.
The following procedure shall be followed in handling and
accounting for broken or deteriorated merchandise:
(a) Wholesalers shall return broken bottles
or deteriorated merchandise from the retailer involved to his warehouse before
replacing same with the retailer.
(b) Replacement shall be listed on the
wholesaler's standard invoice and designated whether breakage or deteriorated
merchandise.
(c) The wholesaler
shall prepare a standard invoice covering the breakage or deteriorated
merchandise within his own stock on the date it is broken or the deteriorated
merchandise is removed from his inventory.
(d) No later than the fifth (5th) day of the
month each wholesaler shall prepare from invoices of the previous month a
complete list of breakage and deteriorated merchandise. The list shall be
prepared in triplicate and shall include the invoice number, retail license
number (or wholesaler's license number), brand, and size.
(e) An agent of the Tennessee Alcoholic
Beverage Commission shall use this list in checking and destroying broken
bottles, and checking the deteriorated merchandise which he shall mark as
unsaleable. The agent will certify all three (3) copies of the list and forward
one (1) copy to the Commission. The wholesaler shall mail another copy to the
Miscellaneous Tax Division of the Department of Revenue and retain the third
(3rd) as a part of its records.
(f)
After checking and marking, the wholesaler may dispose of the deteriorated
merchandise without regard to the limitation established in Rule
0100-03-.16(1)(b)
provided, however, the wholesaler will incur tax liability at the same time all
such unsaleable alcoholic beverages are removed from inventory and not
destroyed.
(4) Wholesaler
Assistance at Special Occasion Events. A wholesaler or employee thereof may
participate in, assist, and serve alcoholic beverages on behalf of a holder of
special occasion permits issued pursuant to T.C.A. §
57-4-101(g).
Authority: T.C.A. §§
57-1-209,
57-3-104,
57-3-104(c)(4),
57-3-203,
57-3-303,
57-3-307,
57-3-404,
67-1-102,
and Chapter 707, Public Acts of 1974, § 1.
