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By way of update on the possibility of the United States Postal Service shipping alcohol and the USPS Shipping Equity Act, which would allow the USPS to ship alcoholic beverages directly from licensed producers and licensed retailers to consumers over the age of 21.  Shipments under the Act would still have to comply with all state and local laws regarding licensing and delivery requirements.  According to Rep. Speier, last year direct-to-consumer shipments totaled over $3 billion nationally.  Allowing USPS to participate will increase competition and access for both shippers and consumers. After consultation, additional language is proposed, below: NO PREEMPTION OF STATE, LOCAL, OR TRIBAL LAWS PROHIBITING DELIVERIES, SHIPMENTS, OR SALES. Nothing in this section, the amendments made by this section, or any regulation promulgated under this section or the amendments made by this section, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the delivery, shipment, or sale of distilled spirits, wine, or malt beverages (as those terms are defined in section 117 of the Federal Alcohol Administration Act (27 U.S.C. 211)). LIABILITY OF THE UNITED STATES POSTAL SERVICE. The United States District Courts shall have jurisdiction to render judgment upon any claim brought by a State, local, or tribal government against the United States Postal Service of a violation of State, local, or tribal law regarding the sale, mailing, transportation, or importation of alcoholic beverages into any State, territory, or district of the United States. The…

Posted in alcohol beverage law, Three Tier System, TTB | Tagged DTC, shipping, USPS | Comments Off

With the help of the Kentucky Distillers Association, a Kentucky bill allowing direct-to-consumer distilled spirits and wine shipments was signed into law on April 13th, 2018. HB 400 permits tourists visiting state distilleries and wineries to purchase a souvenir bottle and have it shipped directly to the purchaser’s home. HB 400 amended KRS 243.0305 to allow distilleries to ship product directly to consumers and allows for consumer participation in monthly club memberships or subscriptions. Now, consumers visiting Kentucky distilleries may purchase 4.5 liters of whiskey per person, per day and elect to have the whiskey shipped directly to their homes. Sales made after January 1, 2021 will allow for consumers to purchase and ship 9 liters of whiskey per person, per day. Additionally, whiskey fans may now participate in a subscription service or bottle of the month club and receive up to nine liters of distilled spirits delivered directly to their home annually. KRS 243.155 was also amended to allow small farm wineries to sell up to 4 cases of wine per person per day for shipment directly to the purchaser. Small farm wineries may also participate in monthly club memberships or wine subscription services where members may have up to 1 case of wine per month shipped directly to their residence. All Deliveries must be made by a licensed common carrier authorized to deliver or ship distilled spirits and wine to the destination state (remember to see individual state shipping laws on the permissibility of DTC shipping in that…

The Illinois Liquor Control Commission (ILCC) is meeting today to discuss next steps regarding illegal shipments of alcohol into the state from out-of-state retailers, according to the Chicago Sun-Times. This is follow-up from the December ILCC cease and desist letters sent to almost 1,000 liquor stores around the country.  “The illegal direct shipment of alcohol into the state of Illinois is something that the Illinois Liquor Control Commission takes very seriously,” noted a statement from the ILCC quoted in the Sun-Times. “The cease and desist letters are a continuation of enforcement efforts by the Illinois Liquor Control Commission as we look to halt the shipment of alcoholic liquor from unlicensed sources into Illinois.” The issue is not only direct shipments to consumers, but also Illinois liquor stores receiving alcohol from out-of-state. According to the Sun-Times, one store maintained a “front door register” for normal retail business and a “back door register” for sales to Illinois liquor stores. The result: lost tax revenue for the state.