So you’re considering the importation of wine into the United States but the legal world of alcohol beverage importation remains a mystery. Before delving into this exciting endeavor, you should familiarize yourself with the essential requirements associated with wine importation in the U.S. The alcohol beverage industry is regulated at both the federal and state levels, meaning that importing wine necessitates adherence to the mandates of both federal and state authorities.
To make the path smoother for potential wine importers, Lindsey Zahn P.C. has compiled vital insights based on our experience working with importers of wine. It is crucial to note that the information provided below serves as general guidance to give you an overview of compliance considerations when entering the wine import business. We strongly recommend collaborating with an alcohol beverage attorney who can offer tailored insights into your specific business model, location, and imported products. (Please feel free to contact us at info@zahnlawpc.com for more information about the services we provide to support your wine import business.)
Federal Agencies in Play
On the federal side, you will interact with several key agencies:
- The Alcohol and Tobacco Tax and Trade Bureau (“TTB“): This federal agency, under the Department of Treasury, primarily oversees the regulation of alcohol beverage production, importation, and distribution in the U.S. For importers, TTB regulates various aspects such as licensing, excise taxes, labeling, and formulation (among others). To sell imported wines in U.S. commerce, all labels must gain TTB approval before the wine’s importation. This entails a federal label approval process, where the label must be submitted under the importer’s permit, and the government will review and either approve, reject, or request corrections. The same process applies to formulas for many products (though not typically to table wines). However, it may apply to some imported wines depending on their class/type.
- The Food and Drug Administration (“FDA”): The FDA has jurisdiction over alcohol beverages in specific instances. For importers, one key consideration is the FDA food facility registration requirement, established under the 2002 Bioterrorism Act. In the U.S., any facility involved in the manufacture, processing, packing, or storage of food for human or animal consumption must be registered with the FDA. If you are using a warehouse where your wine will be stored before being sold and you’re an importer, that warehouse generally must be registered with the FDA. Moreover, if you’re collaborating with a non-U.S. winery, it’s likely that the winery will also need FDA registration and a U.S.-based Agent. Additionally, prior notice is mandatory for all food and beverage shipments to the U.S.
- U.S. Customs and Border Protection: This is the initial point of entry for wine shipments. Customs collaborates with both TTB and the FDA and will only release goods into U.S. commerce if specific regulatory compliance requirements are met. This includes having a federal label approval (“COLA”) from TTB and an FDA-generated facility number from the corresponding winery, among other obligations.
Key Legal and Compliance Requirements for Wine Importers
Embarking on a wine importing business is multifaceted and compliance aspects involve navigating federal, state, and possibly local agency requirements. Given the complexities associated with this endeavor, we highly recommend working with an alcohol beverage attorney who can help determine potential compliance requirements and guide your new business. For further insights into our services and how we can assist your wine import business, contact us at info@zahnlawpc.com.
Here’s a general list of requirements that typically should be addressed when launching a wine import business:
- Obtaining an Employer Identification Number (“EIN”): This number, issued by the IRS, is required before applying for your federal importer permit with the TTB. It is also essential before opening a bank account for your company, except for sole proprietorships. The EIN should be obtained from the IRS.
- Acquiring a Federal Basic Permit: To import wines to the U.S., you must request a federal basic importer’s permit from the TTB. This permit should be issued to your importing business, at the address serving as your place of business. While the processing time can vary, new businesses should anticipate that the issuance of the federal importer permit will take at least a month. A Letter of Intent from the winery, signifying their commitment to exporting wine to your company, is typically required. Feel free to contact us at info@zahnlawpc.com for more information about how we can assist with your company’s TTB federal basic permit.
- Primary American Source or Appointment Letter Requirements: This is often a state-specific requirement, and the necessity varies depending on your business’s location.
- Label Approval or COLA from the TTB: Generally speaking, wine imported into the U.S. requires a label approval from the TTB. Labels must adhere to U.S. federal wine labeling requirements, including health warning statements, sulfites declarations, net contents in metric units, and more. Since label approvals can be time-consuming and the regulations may be nuanced for folks not familiar with requirements, collaborating with a beverage alcohol attorney well-versed in TTB requirements is advisable.
- State Licensing and Compliance Requirements: Depending on the state in which your business is licensed, state-specific licensing or compliance requirements may apply.
- FDA Food Facility Registration Numbers: Generally, FDA food facility registration will be required for overseas wineries. In addition, importers may need one for locations at which wine is warehoused in the U.S.
- Customs Continuous Bond: A Customs Continuous Bond may be required by U.S. Customs and Border Protection for formal entries.
- Payment of Duties and Excise Taxes: Importing wine involves paying duties and excise taxes on the imported wines. There may also be state taxes or fees applicable.
Please note that this list is not exhaustive, and the legal landscape can be quite intricate.
How Can Lindsey Zahn P.C. Assist Your Importing Company?
Lindsey Zahn P.C. collaborates regularly with agencies governing food and alcohol beverages. We are well-versed in the requirements for importing alcohol into the U.S. and can guide you through the necessary procedures. Our firm can assist with filing your federal basic permit with TTV, reviewing proposed labels and formulas, filing for COLAs and formulations, reviewing potential contracts, and more. For more information about how we can assist your company, reach out to us at info@zahnlawpc.com for an initial consultation.