Importing hard cider into the United States requires navigating a series of regulatory requirements imposed by various federal agencies, including the Alcohol and Tobacco Tax and Trade Bureau (“TTB”), U.S. Customs and Border Protection (“CBP”), and the Food and Drug Administration (“FDA”). These agencies enforce rules related to labeling, packaging, taxes, and public health to ensure that imported alcoholic beverages meet U.S. standards. Below is a guide on how to import hard cider into the U.S.
Obtain an Importer’s Permit
To legally import hard cider into the U.S., you must first obtain an importer’s permit from the TTB. The TTB oversees the importation of alcohol beverages, ensuring compliance with federal laws. To obtain this permit, you will need to:
- Submit an application for a federal basic permit.
- Provide documentation about your business, including source of funds and ownership structure.
- Obtain a Letter of Intent from a foreign supplier.
This is not an exhaustive list. Our firm has handled many importer applications before the TTB and can generate a checklist of items required for your company to apply for the federal basic permit application.
Ensure Compliance with FDA Regulations
The FDA is responsible for overseeing the safety of food and beverages, including alcoholic products like hard cider. When importing hard cider, it must meet FDA requirements for:
- Ensuring the cider is free from harmful contaminants.
- Proper labeling in accordance with FDA guidelines, such as ingredient lists and nutrition facts panels (for hard ciders under 7% ABV).
- Registering the overseas facility with the FDA under the Food Facility Registration process.
Customs and Border Protection (CBP) Clearance
Once the cider reaches the U.S. border, it must go through U.S. Customs and Border Protection, where several steps are required to clear the goods:
- File an import entry with CBP, including documents such as the commercial invoice, packing list, and bill of lading.
- Pay any duties and taxes based on the cider’s volume and value.
- CBP will inspect the shipment for compliance with federal regulations before releasing the goods.
TTB Label Approval for Hard Cider
Before hard cider can be sold in the U.S., its label generally must be approved by the TTB. Labels must include critical information such as:
- The name of the product.
- Alcohol by volume (“ABV”).
- The name and address of the importer.
- A Government Warning Statement.
- Any other claims (e.g., organic, gluten-free) must be verified.
The TTB provides an online system called COLAs for label approval submissions.
State-Level Compliance
In addition to federal regulations, states have their own rules for the sale and distribution of alcoholic beverages. Each state has unique requirements, which may include:
- State-level permits for the sale of alcohol.
- Specific importation procedures depending on the state.
- Different tax rates based on the state.
It’s crucial to check with state alcohol regulatory bodies to ensure compliance in the states where you intend to sell your hard cider.
Taxes and Duties
Imported alcohol, including hard cider, is subject to both federal and state excise taxes. The TTB imposes taxes based on volume, measured in gallons or liters, while CBP collects additional duties at the port of entry. Cider importers must correctly calculate and pay these taxes to ensure compliance.
For federal tax information, visit the TTB’s excise tax page.
Contracts Needed Between the Importer and Producer
Importers will often need to establish several contracts with the producer (whether the cider maker or their agent) to facilitate the smooth importation of the product into the U.S. Key contracts include:
- Importation Agreement: This outlines the terms for importing the hard cider, including product pricing, delivery schedules, and responsibilities for obtaining permits and licenses.
- Exclusive Distribution Agreement (if applicable): If the importer has exclusive distribution rights in a specific region, this contract will detail the geographic area, minimum purchase commitments, and exclusivity period.
- Shipping and Freight Agreement: This specifies the terms for transporting the cider, including shipping costs, insurance, and risk transfer from the producer to the importer.
Selling Alcohol Through the Three-Tier System
The U.S. alcohol industry operates under a three-tier distribution system, which divides the distribution process into production, distribution, and retail phases. Importers must sell their cider through licensed wholesalers or distributors who, in turn, sell it to retailers. Here’s how the system works:
- Tier 1 – Producers: The cider is made by the cider maker (for imported cider, this would be an overseas cidery). In some cases, the producer may be responsible for obtaining necessary certifications, labels, and permits in their country before sending the cider.
- Tier 2 – Importers and Distributors: The importer brings the cider into the U.S. and sells it to distributors. Importers generally cannot sell directly to consumers. Instead, they must sell their imported sake to a wholesaler or distributor, who then sells the product to retailers (including restaurants, bars, package stores, and other licensed businesses). This tier often involves wholesale agreements that specify pricing, quantities, and delivery schedules between the importer and distributors.
- Tier 3 – Retailers and Consumers: The final tier consists of retailers who sell the cider to consumers. This can include liquor stores, restaurants, and bars that hold the necessary licenses to sell alcohol. Importantly, retailers are responsible for complying with local, state, and federal laws regarding the sale of alcohol, including age verification, hours of sale, and advertising.
This separation ensures fair competition in the alcohol industry and prevents monopolistic control. Importers must follow this system carefully to avoid penalties.
How Can Lindsey Zahn P.C. Help Your CIder Importer Company?
Importing hard cider into the U.S. is a multi-step process that involves compliance with numerous regulatory bodies, including the TTB, FDA, CBP, and state agencies. Importers must adhere to complex federal and state rules regarding permits, taxes, and product labeling. Given the intricate nature of alcohol importation, working with an alcohol beverage attorney can help ensure compliance, simplify the process, and avoid costly legal errors.
Contact Lindsey Zahn P.C. to schedule an introductory meeting to discuss your needs and products and to learn more about how we can help: info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).