SECTION 41.32. Out-Of-State Winery Direct Shipper's Permits

(a) This rule relates to Chapter 54 of the Alcoholic Beverage Code.

(b) Each holder of an out-of-state winery direct shipper's permit shall make reports (Direct Shipper's Report) to the commission on forms prescribed by the executive director or executive director's designee.

(c) The report shall be made and filed by the permittee with the commission at its offices in Austin, Texas, on or before the 15th day of the month following the end of the reporting period for which the report is made and shall show:

(1) the reporting period and year for which the report is made, the permit number and the name and address of the winery; and

(2) the ship date, invoice date, invoice number, customer name, city, total wine gallons per invoice, and carrier name and tracking number for each sale and delivery.

(d) The permittee shall attach to the Direct Shipper's Report either:

(1) complete, un-redacted copies of invoices showing:

(A) the names and addresses of the individuals to whom the alcoholic beverages were shipped;

(B) the brand name shipped, the container size and the quantities of each brand name;

(C) the prices charged for each brand name;

(D) the licensed common carrier used to deliver the alcoholic beverages; and

(E) the licensed common carrier tracking number used to identify each shipment; or

(2) a complete, unredacted list containing the information described in paragraph (1) of this subsection.

(e) Holders of out-of-state winery direct shipper's permits must pay the excise tax on the total gallons of wine shipped into the state, not later than the 15th day of the month following the reporting period the wine was shipped into the state. Remittance of the tax due on wine, less 2.0% of the amount due when submitted within the required time, shall accompany the Direct Shipper's Report and shall be made by check, United States money order, or other acceptable methods of payment payable to the Texas Alcoholic Beverage Commission.

(f) As long as an out-of-state winery direct shipper's permit remains active, the reports required herein must be filed even though no sales or shipments have been made.

(g) Holders of out-of-state winery direct shipper's permits that shipped 5,000 gallons annually or more to consumers in Texas during the previous calendar year, must file a monthly report.

(h) Holders of out-of-state winery direct shipper's permits that shipped less than 5,000 gallons annually to consumers in Texas during the previous calendar year, must file a quarterly report. Quarterly Reporting Periods: January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31.

(i) Holders of out-of-state winery direct shipper's permits must:

(1) require adult signature upon delivery of alcoholic beverages and notify the carrier that the shipment contains alcoholic beverages;

(2) ensure that any third party it uses for order fulfillment identifies and marks the packages to be shipped as containing alcohol and obtains an adult signature upon delivery of the alcoholic beverage product;

(3) maintain tracking status documentation for each shipment to a Texas consumer, which must include delivery confirmation and undeliverable shipments; and

(4) provide records relating to alcohol shipments to Texas consumers made by a third party on behalf of the permit holder.

(j) Failure to comply with the requirements of this section or accurately maintain required records may result in cancellation or suspension of the direct shipper's permit.

(k) Holders of out-of-state winery direct shipper's permits that contract with a third party to provide packaging services and/or recordkeeping services, such as filing state tax reports, shall ensure all service records and tax reports subject to the third-party contract are available upon commission request.

Source Note: The provisions of this §41.32 adopted to be effective December 6, 2021, 46 TexReg 8246