Wine shipping records confusion prompts crackdown

(c) Sovos Compliance 2017

Many states are cracking down on what they perceive as illegal alcohol shipping, with New York, Michigan, and Illinois at the top of the aggressive stance, according to a report on Forbes.com.

Part of the states' shipping crackdown comes from confusion over shipping reports. Alex Koral, industry outreach advisor at the direct-to-consumer (DTC) tracking organization ShipCompliant, “Many wineries will use third-party fulfillment centers to facilitate their orders. When the common carrier files a report with the state, they’ll list the fulfillment center as the source of the shipment … . The states won’t have a record of that location being connected to a licensee … . It looks like it’s an illegal order, even though it was properly coming from a legal, licensed winery.” He says only North Dakota and Virginia license fulfillment centers.

Go here for the full story from Forbes.

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