1. The direct shipper must verify that the buyer is at least 21 years of age through obtaining a copy of a government issued photo identification or by via an electronic identification verification service.

a. All containers of alcohol shipped directly to a resident in a state are conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.”

b. The recipient at the time of delivery is required to provide photo identification verifying their age along with a signature.

2. The direct shipper will be limited to the same quantity limits applied to the destination state liquor stores.

3. The direct shipper, either via self-reporting or via a marketplace facilitator, must pay sales taxes on a regularly specified time period to the state.

4. The direct shipper, either via self-reporting or via a marketplace facilitator, must pay excise taxes on a regularly specified time period to the state.

5. The direct shipper may ship to the ultimate consumer home address or designated access point, dry zip codes notwithstanding.

6. Any person or business licensed in a state to sell alcohol may sell and ship said alcohol directly to a person, who is at least 21 years of age, for the person’s personal use and not for resale.

7. Any alcohol shipped must have an approved Federal TTB label at 7% or more ABV or FDA approval under 7%.  Direct shipped products should not be subject to a secondary label registration at the State level.

8. The direct shipper, either via self-reporting or via a marketplace facilitator, must report transactions on a quarterly basis. The reports must include order number, liters shipped, and carrier tracking numbers. For privacy purposes individual consumer details should not be on the reports, but should be kept by the seller for 3 years.

9. Any person or business licensed in a state as an alcohol producer, supplier, importer, wholesaler, distributor or retailer, before sending any shipments, must obtain a direct shipper permit.

10. Any person or business currently licensed in any state as an alcohol producer, supplier, importer, wholesaler, distributor or retailer who obtains a direct shipper permit is allowed to self-distribute, without limit, all products they are licensed to sell.

Background

The “Model Direct Shipping Bill” was adopted by National Conference of State Legislatures in 1997. This standardized legislative language provided a foundation for States to base their direct shipping laws on, and many did so. Over a quarter century later, in order to continue to promote the growth of the direct-to-consumer market, there are several matters that should be updated to reflect the modern economy and technology.

The National Direct Shipping Bill of Rights, much like the 1997 Model Direct Shipping Bill, establishes a number of simplified and updated rules. The Bill of Rights will allow for an orderly market, will meet the 21st Amendment rights of a State to maintain the health and safety of the American people, and will provide consumers the greatest choice.

While the 1997 Model Direct Shipping Bill exclusively covered wine, the National Direct Shipping Bill of Rights expands these rights to all alcohol products covered by the TTB or FTC.

Most of the concepts and structures in this Bill exist today in one State or another. The Bill of Rights creates a uniform approach to help producers, and consumers alike, as well as simplify enforcement and tax collection for the States.