Oregon Shipping Permits Needed

Direct shipping and direct distribution changes take effect Jan. 1

by Wines & Vines staff
Oregon Shipping Permits Needed
Milwaukie, Ore. -- Wineries have until Jan. 1, 2008, to get their new permits for direct shipping into Oregon. The state switches from reciprocal status to permit status on that day, after 18 years as a reciprocal state.

Along with the new paperwork and fee system comes some good news. Out-of-state wineries may also conduct direct distribution in Oregon in the New Year. It's the latest result of the Supreme Court's Granholm decision in 2005, requiring states to treat in-state and out-of-state wine shippers equally.

"Overall, when these laws change it's usually a little more paperwork, but it's good for most wineries," said Annie Bones of California's Wine Institute, "because they have more access to the market."

The new law requires in-state and out-of-state wineries and retailers to get a Direct Shipper Permit. Non-Oregon wineries pay an annual license fee of $50 (the form for in-state wineries does not mention a fee) and maintain a bond of at least $1,000. Wineries with approved Direct Shipper Permits may send up to two nine-liter cases per month directly to an Oregon resident who is at least 21 years of age. They must pay excise taxes and file monthly reports with the Privilege Tax Department.

AOregon Shipping Permits Needed
The Oregon authorities will mail wineries monthly report forms within 30 days of issuing permits. The permit application and instructions on how to apply for a bond are currently available on the Oregon Liquor Control Commission website and the Wine Institute website.

Wineries may also apply for an Oregon Self-Distribution permit at this time, in order to ship directly to retailers in Oregon. In order to obtain the permit, applicants must have an Oregon Certificate of Approval, pay a $100 fee and maintain a bond of at least $1,000. There are additional reporting and tax requirements. More information about the Self-Distribution application process can be found on the Oregon Liquor Commission's website.

Wineries applying for both a Direct Shipper Permit and Self-Distribution Permit should keep the application processes separate. For example, an applicant will need to obtain one bond for the Direct Shipper permit and a second bond for the Self-Distribution permit.
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