On June 4, 2009, Gov. Phil Bredesen signed into law a bill that allows direct shipment of wine to Tennessee customers from out-of-state wineries.
Wineries can send up to three cases (27 liters) of wine to Tennessee consumers per year. The law limits such shipments to one case (9 liters) of wine shipped per month.
The law limits shipping to Tennessee cities or towns where package sales are allowed.
Direct Shipping License
In order to ship wine to Tennessee consumers, a business must obtain a direct shippers license. Direct shippers licenses are available to businesses who have a federal basic permit under the federal Alcohol Administration Act and who are in the business of manufacturing, bottling, or rectifying wine.
Applying for license
To obtain a license an applicant must apply to the Tennessee Alcoholic Beverage Commission (TABC). Applicants must:
- Pay a one-time non-refundable fee of $300 and an annual license fee of $150
- Consent to jurisdiction and venue of all actions brought before the commission, any state agency, or any state court, so that any matters related to the license will be conducted within the State of Tennessee
- Acknowledge that it will contract only with common carriers that will deliver only upon face-to-face verification of age and sign a receipt for delivery of the wine
Application Review
The TABC is in the process of developing application materials and will review all applications for licenses.
Reporting
Wineries licensed as direct shippers will be required to file periodic reports to the Tennessee Department of Revenue and pay applicable state taxes on all wine shipped to Tennessee consumers.
Representation Before the TABC
Gullett Sanford has represented many clients before the TABC. Please do not hesitate to contact us with any questions.
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