Rules & Regulations of the State of Tennessee
Title 0100 - Alcoholic Beverage Commission
Chapter 0100-10 - Direct Shipment of Wine to Consumers in Tennessee
Section 0100-10-.01 - APPLICATIONS FOR DIRECT SHIPPER
Current through September 24, 2024
A winery direct shipper license applicant is required to submit a complete application in a manner specified by the Commission, and a separate business owner questionnaire for each owner, partner, and/or officer with at least ten (10) percent ownership interest. Applicants are required to pay a non-refundable application fee of $300.00 and, upon approval of the application, an annual license fee of $150.00. Additionally, Applicants must provide the Commission with the following information:
(1) A copy of a federal basic permit issued pursuant to the Federal Alcohol Administration Act (27 U.S.C. §§ 201 et seq.) authorizing the permittee to engage in the business of wine production. Federal basic permits related to distilled spirits production, the importation of alcoholic beverages in the United States, or wholesale of alcoholic beverages are not acceptable.
(2) A list of all wine brands that Applicant intends to sell under the license. Only wine brands that are included in the application and accepted by the Commission may be sold and shipped to Tennessee consumers by the winery direct shipper and/or its agent, the licensed fulfillment house. Winery direct shippers are prohibited from selling brands associated with another winery direct shipper license. If TABC determines that there is an absence of sufficient proof that a listed brand is produced pursuant to this paragraph, TABC has discretion to remove the brand from the list of accepted brands from the application and the winery direct shipper is prohibited from selling the removed brand under its winery direct shipper license.
(3) Proof that wine brands intended to be sold in Tennessee are owned by or licensed to the winery and are either:
Brand names and authorized trade names that are disclosed on the federal basic permit may be used to establish that the brand is owned by or licensed to the winery. A Certification/Exemption of Label/Bottle Approval (COLA) reflecting the permittee's name or authorized trade name may also establish that the brand is owned by or licensed to the winery. This is a non-exhaustive list the Commission shall consider in making this determination. If TABC determines that there is an absence of sufficient proof that a listed brand is produced pursuant to this paragraph, TABC retains the discretion to remove the brand from the list of brands provided on the application and the winery direct shipper is prohibited from selling the removed brand under its winery direct shipper license.
(4) An unexpired copy of the state license authorizing the winery direct shipper to produce wine or have wine produced as described in paragraph (3). A winery direct shipper license only authorizes the sale of wine produced at a single winery. Applicants seeking to sell and ship wine from multiple wineries must obtain a winery direct shipper license for each winery.
(5) Electronic acknowledgement and consent to jurisdiction and venue for all actions brought before the Tennessee Alcoholic Beverage Commission, any Tennessee state agency, or any courts within Tennessee related to the direct shipper license.
(6) Electronic acknowledgement that Applicant will only contract with common carriers who agree that any wine delivered in Tennessee will be by face-to-face delivery to individuals that demonstrate that they are over the age of twenty-one (21) and require a signature upon receipt of delivery.
(7) A copy of the common carrier contract(s), if applicable.
(8) A copy of the contract(s) between Applicant and the licensed fulfillment house(s), if applicable.
(9) Winery direct shipper Applicants are responsible for providing TABC with updated lists and corresponding contracts for each fulfillment house with whom the winery contracts.
(10) An exhaustive list of website addresses on which Applicant will sell wine for shipment into Tennessee. Applicants are required to notify the Commission of any changes throughout the license year in a manner specified by the Commission.
(11) Electronic acknowledgement that Applicant shall include its Tennessee winery direct shipper license number, in at least one (1) location that a reasonable person can locate, on any website from which Applicant sells wine for direct shipment into Tennessee.
(12) Electronic acknowledgement that Applicant may not sell alcoholic beverages other than wine as defined by T.C.A. § 57-3-101 for shipment into Tennessee.
(13) Electronic acknowledgement that Applicant may not sell wine brands other than those disclosed in its application and accepted by the Commission that meet the requirements of T.C.A. § 57-3-217.
(14) Electronic acknowledgement that Applicant will not sell alcoholic beverages for shipment in Tennessee on any website not disclosed on the application and accepted by the Commission.
(15) Electronic acknowledgement that winery direct shippers producing two hundred seventy thousand (270,000) liters or more of wine per calendar year may not ship more than twentyseven (27) liters of wine to an individual in a calendar year.
(16) Electronic acknowledgement that winery direct shippers producing less than two hundred seventy thousand (270,000) liters of wine per calendar year may not ship more than fifty-four (54) liters of wine to an individual in a calendar year.
(17) Electronic acknowledgement that a winery direct shipper may not ship more than nine (9) liters of wine to an individual in a calendar month.
(18) Sufficient information to establish that Applicant is registered with the Tennessee Department of Revenue to pay applicable Sales & Use Taxes and Gallonage Taxes or is otherwise eligible to submit Sales & Use Taxes and Gallonage Taxes to the Tennessee Department of Revenue.
(19) Electronic acknowledgement that any shipment of wine by licensed direct shippers will be made in containers that are clearly marked on the exterior of the container, visible to a person at least three feet (3') away, that the container "CONTAINS ALCOHOL: SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY."
(20) Electronic acknowledgement that the licensed direct shipper is responsible for remitting all sales tax due to the State of Tennessee from any sales made under the Tennessee direct shipper license.
(21) Electronic acknowledgement that the licensed direct shipper is responsible for remitting gallonage taxes as imposed by T.C.A. § 57-3-302.
(22) Electronic acknowledgement that the licensed direct shipper is required to provide quarterly reports in the manner specified by the Commission that lists the following:
(23) Compliance with the Eligibility Verification for Entitlements Act as codified in T.C.A. §§ 4-58101, et seq.
Authority: T.C.A. §§ 4-58-103 and 57-3-217.
