Distilled spirits (beverages), wine and malt beverages
- Document symbol
- G/LIC/N/3/USA/21
- Original language
- English
- Published on
- 16/10/2024
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Importers of distilled spirits, wine, and malt beverages for non-industrial (beverage) use are required to have basic permits, issued under the Federal Alcohol Administration Act (“FAA Act”), to engage in their respective businesses. Similar permit requirements exist for producers (except brewers) and wholesalers of distilled spirits, wine, and malt beverages in the United States. The primary purposes of this requirement are to protect the consumer by oversight of labelling and advertising, to prevent unfair trade practices as required by the FAA Act, and to enforce all other Federal laws relating to spirits, wine, and malt beverages, including taxes. Retailers are not required to obtain basic permits under the FAA Act.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Persons seeking to engage in the business of importing distilled spirits, wine, or malt beverages, as defined in the FAA Act, into the United States must apply for a Federal Basic Importer’s Permit (“Importer’s Permit”).
Q3. The system applies to goods originating in and coming from which countries?
This permit system applies to goods imported into the United States.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
No. The purpose of the permit system is to provide an enforcement mechanism to ensure that importers comply with all requirements of Federal law relating to alcohol.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The permit system is a statutory requirement of the FAA Act, 27 U.S.C. 201 et seq. (https://www.govinfo.gov/app/details/USCODE-2023-title27/USCODE-2023-title27-chap8-subchapI-sec201). The regulations concerning basic permit requirements, promulgated under the FAA Act, are located in 27 CFR Part 1, et seq. (http://www.gpo.gov/fdsys/pkg/CFR-2002-title27-vol1/content-detail.html). Yes, licensing is a statutory requirement and may not be abolished without legislative approval. The designation of products requiring a license is not subject to administrative discretion.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Permits are issued usually within six to eight months after an application has been filed. Under certain circumstances, a permit can be obtained within a shorter time frame. Once issued, the permit remains valid until annulled, suspended or revoked.
Q7.b. Can a licence be granted immediately on request?
Under certain circumstances a permit can be obtained within a shorter time frame.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
No.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is the sole agency that issues basic permits for the importation of alcohol beverages.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
27 U.S.C. §204(a) sets forth the circumstances in which an application for a permit may be denied (https://www.govinfo.gov/app/details/USCODE-2023-title27/USCODE-2023-title27-chap8-subchapI-sec204). The reasons for any refusal are given to the applicant in writing. In the event of refusal to issue a permit, administrative appeals may be made to the Administrator of TTB, and then to a Federal court.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Any person, firm, or institution may apply for a license. Individuals must be citizens or legal residents of the United States; firms or institutions must be incorporated in the United States and have the appropriate tax ID with the IRS. There are no registration fees. TTB publishes a list of authorized importers at http://www.ttb.gov/foia/frl.shtml.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Refer to TTB Form 5100.24 (https://www.ttb.gov/system/files/images/pdfs/forms/f510024.pdf), along with such supporting documentation as required.
Q11. What documents are required upon actual importation?
For TTB purposes, a Certificate of Age and Origin (if issued by country of origin), a Certification for Natural Wine (unless an exemption or alternative certification applies pursuant to 27 CFR 27.140), and a Certificate of Label Approval (TTB Form 5100.31 (https://www.ttb.gov/system/files/images/pdfs/forms/f510031.pdf).
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
No.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Continuing, unless annulled where the permit was procured through fraud or misrepresentation, or suspended or revoked or surrendered where the permit holder is found to have violated law or regulations or failed to engage in the operations authorized by the permit for a period of more than two years.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
Proceedings to revoke a permit may be commenced if the permit holder failed to engage in the operations authorized by the permit for a period of more than two years.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Yes. For TTB purposes, a Certificate of Age and Origin (if issued by country of origin), a Certification for Natural Wine (unless an exemption or alternative certification applies pursuant to 27 CFR 27.140), and a Certificate of Label Approval (TTB Form 5100.31 - https://www.ttb.gov/system/files/images/pdfs/forms/f510031.pdf) are required. Additionally, any entity in the United States (including importers) that sells distilled spirits, wine, or beer to a dealer for resale must register as an alcohol dealer with TTB before commencing operations for the first time. (See 26 U.S.C. Chapter 51 (https://www.govinfo.gov/app/details/USCODE-2023-title26/USCODE-2023-title26-subtitleE-chap51).