2023 New York Laws › ABC - Alcoholic Beverage Control › Article 6 - Special Provisions Relating to Wine › 79-C - Direct Interstate Wine Shipments.

§   79-c.   Direct   interstate   wine  shipments.  1.  Authorization.
Notwithstanding  any  provision  of  law,  rule  or  regulation  to  the
contrary, any holder of a license to manufacture wine in any other state
who  obtains  an  out-of-state  direct shipper's license, as provided in
this section, may ship no more than thirty-six cases (no more than  nine
liters  each  case)  of  wine  produced  by such license holder per year
directly to a resident of New York who is at least twenty-one  years  of
age,  for  such resident's personal use and not for resale, provided the
state in which such person is  so  licensed  affords  lawful  means  for
shipments  of  wine to be received by a resident thereof who is at least
twenty-one years of age, for such resident's personal use  and  not  for
resale,  from  a  person  licensed  in this state as a manufacturer and,
provided further, that the state in which such  out-of-state  winery  is
located  affords  to  New  York  state  winery and farm winery licensees
reciprocal shipping privileges, meaning  shipping  privileges  that  are
substantially  similar  to  the  requirements in this section. No person
shall place an order for shipment of wine  unless  they  are  twenty-one
years  of age or older. Any common carrier with a permit issued pursuant
to this chapter to whom such out-of-state shipper's license is presented
is authorized to make delivery of shipments provided  for  hereunder  in
this state in compliance with this section.
2.  License.  Before  sending  any shipment hereunder to a resident in
this state, the out-of-state shipper shall first obtain a  license  from
the  authority  under  procedures prescribed by rules and regulations of
the authority and after providing the authority with a true copy of  its
current license to manufacture wine in the applicant's state of domicile
along  with a copy of the applicant's federal basic permit after payment
of an annual fee of one hundred twenty-five dollars. Notwithstanding the
provisions of section one hundred ten of this chapter, the authority  in
its discretion, may excuse an out-of-state winery from the submission of
such information.
3.  Licensee's  responsibilities. The holder of an out-of-state direct
shipper's license shall:
(a) ship no more than thirty-six cases (no more than nine liters  each
case) per year of wine produced by such license holder directly to a New
York  state  resident  who is at least twenty-one years of age, for such
resident's personal use and not for resale;
(b) ensure that the outside of each shipping container  used  to  ship
wine  directly  to a New York resident is conspicuously labeled with the
words:  "CONTAINS WINE - SIGNATURE OF PERSON AGE 21  OR  OLDER  REQUIRED
FOR  DELIVERY  -  NOT  FOR  RESALE," or with other language specifically
approved by the New York state liquor authority;
(c) maintain records in such manner and  form  as  the  authority  may
direct,  showing  the  total  amount of wine shipped into the state each
calendar year; the names and addresses of the  purchasers  to  whom  the
wine  was  shipped,  the  date purchased, the name of the common carrier
used to deliver the wine, and the quantity and value of each shipment;
(d) in connection with the acceptance of an order for  a  delivery  of
wine  to  a  New  York  resident,  require  the  prospective customer to
represent that he or she has attained the age  of  twenty-one  years  or
more  and that the wine being purchased will not be resold or introduced
into commerce;
(e) require common carriers to:
(i) require a recipient, at the delivery address,  upon  delivery,  to
demonstrate  that  the  recipient is at least twenty-one years of age by
providing a valid form  of  photographic  identification  authorized  by
section sixty-five-b of this chapter;
(ii)  require a recipient to sign an electronic or paper form or other
acknowledgement of receipt as approved by the authority; and
(iii)  refuse delivery when the proposed recipient appears to be under
twenty-one years of age and refuses to present valid  identification  as
required by subparagraph (i) of this paragraph;
(f)  file  returns  with  and  pay to the New York state department of
taxation and finance all state and local sales taxes  and  excise  taxes
due  on  sales  into  this  state  in  accordance  with  the  applicable
provisions of the tax law relating to such taxes,  the  amount  of  such
taxes  to be determined on the basis that each sale in this state was at
the location where delivery is made;
(g) keep all records required by this  section  for  three  years  and
provide  copies  of such records, upon written request, to the authority
or the department of taxation and finance;
(h) permit the authority or the department of taxation and finance  to
perform an audit of such out-of-state shipper upon request;
(i)  execute  a written consent to the jurisdiction of this state, its
agencies and instrumentalities and the courts of this  state  concerning
enforcement of this section and any related laws, rules, or regulations,
including tax laws, rules or regulations; and
(j)  prior  to  obtaining  an  out-of-state  direct shipper's license,
obtain a certificate of authority pursuant  to  section  eleven  hundred
thirty-four  of the tax law and a registration as a distributor pursuant
to sections four hundred twenty-one and four hundred twenty-two  of  the
tax law.
4.  Situs.  Delivery  of  a shipment in this state by the holder of an
out-of-state direct shipper's license shall be deemed  to  constitute  a
sale  in this state at the place of delivery and shall be subject to all
excise taxes levied pursuant to section four hundred twenty-four of  the
tax law and all sales taxes levied pursuant to articles twenty-eight and
twenty-nine of such law.
5.  Renewal.  The  out-of-state shipper may annually renew its license
with the authority by paying a one hundred  twenty-five  dollar  renewal
fee,  providing the authority with a true copy of its current license in
such other state as an alcoholic beverage manufacturer and by  complying
with such other procedures as are prescribed by rule of the authority.
6. Rules and regulations. The authority and the department of taxation
and  finance  may  promulgate  rules  and  regulations to effectuate the
purposes of this section.
7. Enforcement. The authority may enforce  the  requirements  of  this
section  including  the  requirements  imposed on the common carrier, by
administrative  proceedings  to  suspend  or  revoke   an   out-of-state
shipper's   license   and   the  authority  may  accept  payment  of  an
administrative  fine  in  lieu  of  suspension,  such  payments  to   be
determined  by  rules  or  regulations  promulgated by the authority. In
addition, the authority or the attorney general of the state of New York
shall report violations of  this  section,  where  appropriate,  to  the
United  States  department  of  treasury,  tax  and  trade  bureau,  for
administrative action to suspend or revoke the federal basic permit.
8. Violations. In any action brought under this  section,  the  common
carrier and the licensee shall only be held liable for their independent
acts.