Compliance News
Please note the state of Louisiana's Department of Revenue has changed a reporting requirement for all Wine Direct Shippers. Effective January 1st, 2012 all Direct Shippers are required to report quarterly for the Direct to Consumer Excise Tax Return For Wines Shipped Directly to Consumers.
The first quarter return is due April 20th, 2012 for January-March 2012 reporting period.
Beginning 3/1/12 Washington state will require all suppliers of Spirits to obtain a Certificate of Approval to continue importing and selling products in the state of Washington.
These changes come from the passage of Initiative 1183, privatizing the sale of spirits in Washington state.
Previously, the Washington State Liquor Control Board (WSLCB) controlled all spirit sales in the state. Suppliers were not required to hold a liquor license to sell to the Board. Because of the initiative, the WSLCB must close all state liquor stores by June 1, 2012. Beginning March 1, 2012, Certificates of Approval are required for any suppliers located outside the state of Washington.
The state of Washington strongly recommends that all new applications be submitted no later than February 1, 2012 for authorization to sell to licensed distributors or licensed retailers. The application process may take approximately 30 days to complete.
For further information you may visit the Washington state website: www.liq.wa.gov.
January 9, 2012
REVISIONS TO TTB LABEL APPROVAL FORM
The TTB Form 5100.31, Application for and Certification/Exemption of Label/Bottle Approval, (Certificate of Label Approval, or COLA) is being revised.
The TTB is revising the COLA form in part to streamline the COLA application and review process and remove impediments without compromising our mandates under the Federal Alcohol Administration Act (FAA Act).
What Has Changed?
In the Notice the TTB proposes minor changes to the form, which include—
• In the application portion, eliminate the requirement to show wording appearing on caps and seals and other materials firmly affixed to the container.
• In the second and third pages of the form, update the instructions for completing the form and the conditions of approval.
The TTB is also proposing additional circumstances that would allow the holder of an approved COLA to modify approved labels without submission of a new COLA.
How Do I Comment?
The TTB invites public comment on the above proposed changes to TTB Form 5100.31. Please note that the TTB must receive your written comments on or before February 27, 2012.
For more details on how to comment and to take a closer look at the current form and proposed changes, please visit the TTB website at:
http://www.ttb.gov/pdf/announcement_revisions_to_labeling_approval_form.pdf
Effective January 1, 2012, the California ABC has created a new Limted Off Sale Wine License (Type 85), which allows a licensee to make direct to consumer sales in California without the requirement to also hold a wholesaler permit.
The advisory can be viewed in its entirety at http://abc.ca.gov/trade/IA%20Type%2085.pdf.
For more information on the new permit or for assistance in obtaining this permit, please contact Compli at 805-239-4502.
Effective January 1, 2012 the fee to obtain a new Unimerc code will increase to $40.00 per COLA. Connecticut and Kansas continue to be the two states that require Unimerc codes for product registration.
The Nebraska Department of Revenue has changed their due date for the Sales and Use Return. All returns will be due on the 20th of the month. Previously the due date was the 25th of the month.
There are three filing periods in September for the TTB Federal Excise Tax returns if you are a Semi-monthly filer, as follows:
Note: EFT dates are for anyone that is REQUIRED to file electronically. Non-EFT dates are for anyone filing via paper OR filing electronically voluntarily.
NON-EFT DATES
09/01 thru 09/15 Due 09/29
09/16 thru 09/25 Due 09/28
09/26 thru 09/30 Due 10/14
EFT DATES
09/01 thru 09/15 Due 09/29
09/16 thru 09/26 Due 09/29
09/27 thru 09/30 Due 10/14
Effective September 1, the fee for a Texas direct ship permit will be $526.00, up from $470.00. The direct ship permit is good for two years.
The TTB has recently updated the COLA form to include the grape varietals used displayed on wine labels. The current form will be accepted until December 31, 2011; but after that date, both paper and COLA's online applications will be required to list the grape varietals. For more information regarding this change, view the TTB industry circular at http://ttb.gov/announcements/cola-form-change-announcement.pdf. The new form can be found at http://www.ttb.gov/forms/f510031.pdf.
Effective July 2011, all Washington Quarterly filers for the Combined Excise Return (Sales) are required to electronically file their returns. A letter from the Washington Department of Revenue explaining this change was mailed out in May 2011. The letter also includes instructions and your Tax Registration Number and PAC Code, which you will need to set up an account online.
If you haven’t received a letter or you need help with setting up an online account please contact the Washington Department of Revenue at 1-877-345-3353 or by logging on to their website at dor.wa.gov/mandatorye-file.
Please note that if you are a monthly filer you should already be filing online as it has been mandatory since August 2009.
In an effort to streamline the COLA application process and use their resources more efficiently, the TTB has announced that they will no longer evaluate labels for legibility and type size requirements. Alcoholic beverage industry members will be required to continue to comply with the current regulations; however the TTB will not review labels for type size, characters per inch or contrasting background. More information can be found in the TTB industry circular Number 2011-04 at http://ttb.gov/industry_circulars/archives/2011/11-04.html.
The state of Maryland has passed into law a bill that would allow direct shipment of wine to Maryland consumers. Effective July 1st, wineries will be requird to obtain a Direct Wine Shippers Permit for an annual fee of $200, and pay quarterly state and excise taxes. The permit will be renewable annually on July 1 of each year. Permit holders may not ship more than 12 nine liter cases into the state per year to any one household.
The Direct Wine Shippers Permit application has not yet been created. Once the Comptroller's office releases and application, Compli will release the application on directshiplicense.com, or you can contact us for a quote.
Arizona is requiring all businesses who registered with the state prior to July 2009 to renew their Transaction Privilege Tax permit. The cost is $40, although you may want to check with the state first since some customers may have a credit due which will reduce the fee amount.
If you have any questions you may contact the Arizona Department of Revenue at 800-843-7196 or you may register online at www.aztaxes.gov.
The TTB has announced that due to budget cuts and increases in the number of applications; their processing time for approving label approvals has greatly increased. They suggest that producers and bottlers allow up to 90 days for both COLA and formula application approval. In addition, the TTB will no longer accept "expedite requests" or "informal reviews" of labels. They still recommend that COLA's are filed electronically though, using the COLA's online system at https://www.ttbonline.gov/colasonline.
Effective January 1, 2011; the state of New Hampshire will require a fee to obtain a direct ship permit in that state. The fee for wine manufacturers to obtain a permit will be $100, and the fee for importers, wholesalers and retailers will be $500.
There will also be a change in the number of bottles able to be shipped to NH consumers; effective Jan. 1, holders of a direct shipper permit can ship up to 12 nine liter cases or equivalent to any consumer in any calendar year.
More information can be found on the state website at http://www.nh.gov/liquor/direct_ship_permit.shtml.