The Michigan Liquor Control Commission (MLCC) exercises complete control of the alcoholic beverage traffic in Michigan. The MLCC Licensing Division is responsible for processing retail, wholesale and manufacturing license applications and issuing those licenses approved by the MLCC Commissioners. The MLCC Licensing Division is also responsible for processing the subsequent renewals of the retail, wholesale, and manufacturing licenses.

The MLCC Commissioners are appointed by the Governor, with the advice and consent of the Michigan Senate. Of the five members, no more than three can be of the same political party. The Commissioners' terms of office are for four years with rotating expiration dates. Two of the Commissioners (one Democrat and one Republican) serve as Hearing Commissioners and conduct hearings on violations of the Michigan Liquor Control Code of 1998 (Code) and Administrative Rules of the MLCC (Rules). The remaining three Commissioners are designated as the Administrative Commissioners and are responsible for administering the provisions of the Code and Rules in the areas of licensing, enforcement, purchasing, merchandising, and distribution.

New!  Renewals for these tasks are accessible through the Michigan Business One Stop portal.

A. NAME OF LICENSE OR APPROVAL:

Direct Shipper License

B. STATUTORY AUTHORITY:

Constitution of Michigan of 1963 (Excerpt)

Michigan Liquor Control Code of 1998, Public Act 58 of 1998, as amended

C. APPLICABLE REGULATION:

Michigan Administrative Code Implemented by the Michigan Liquor Control Commission

General Rules (R 436.1001 - 436.1063)

Wines (R 436.1702 - 436.1749)

D. SUMMARY OF LICENSE/APPROVAL PROCESS:

 1.  Applicability (activities that require the license)

A Direct Shipper is a person, located in this state or outside of this state but in the United States, who manufactures wine and ships that wine directly to a consumer. A Direct Shipper License does not allow for the direct shipment of imported wines directly to a consumer.

 2.  Pre-Application Requirements

An applicant for a Michigan Direct Shipper License must have an existing Federal Basic Permit issued by the Alcohol and Tobacco Tax and Trade Bureau (TTB). The application forms for the Federal Basic Permit may be obtained from the TTB web site.

An applicant for a Direct Shipper License must also have a license to manufacture wine in this state or outside of this state but in the United States.

 3.  Application Submission Requirements

Completed and executed Application for New Licenses or Application of Buyers for Transfer of Ownership or Interest in License (LC-MW-102) in the name of the applicant individual, applicant corporation, applicant limited liability company, applicant general partner, and/or applicant general partner of a limited partnership.

Copy of the license in the name of the applicant for the manufacture of wine issued by the state in which the wine manufacturing facility is located.

Copy of the Federal Basic Permit in the name of the applicant issued by the Alcohol and Tobacco Tax and Trade Bureau.

License fees in the amount of $100.00 for the Direct Shipper License requested. Please make your check or money order payable to the STATE OF MICHIGAN.

 4.  Procedures and Time-Frame for Obtaining Permit or Approval

The application is submitted to the Michigan Liquor Control Commission, 7150 Harris Drive, PO Box 30005, Lansing, Michigan 48909. Upon receipt of the application, the MLCC Licensing Division reviews the forms, filings, and licenses for the applicant's specific type of business ownership and a $100.00 license fee. The application is generally reviewed within 5 business days from when it was received. Based upon the review, the MLCC Licensing Division forwards a Notice of Deficiency to the applicant indicating additional forms, documents, and/or fees, if any, required to proceed with the application. No further action is taken on the application until all the required forms, documents, and fees are received in the MLCC Lansing office.

Upon receipt of all required forms, documents, and fees the MLCC Licensing Division prepares the completed application file for review and consideration by the MLCC Administrative Commissioners at a regularly scheduled Licensing Meeting. The MLCC Administrative Commissioners review the information provided in the application files to determine whether the application should be approved, denied, or held for further information. The MLCC Administrative Commissioners advise the Licensing Division of their decision at the regularly scheduled Licensing Meeting.

The MLCC Licensing Division then prepares an Order based upon the decision of the MLCC Administrative Commissioners. The applicant is advised of the decisions of the MLCC Administrative Commissioners as follows:

o        If approved a Fee Statement letter or Checklist is prepared requesting the forms, documents and fees required to complete the application.

o        If denied a Notice of Denial together with the MLCC Order advising of the basis of the denial and the right to an appeal hearing is sent to the applicant.

The applicant, if approved, then completes and returns all requested forms, documents and fees to the MLCC Lansing office.

The applicant, if denied, determines whether to request an appeal of the denial of the licensing application. The request for a hearing must be received in the MLCC Lansing office within 20 days from the date of the mailing of the decision of the denial. Appeal hearings of licensing decisions are generally held in the MLCC Lansing office on Tuesdays and in the MLCC Farmington office on Thursdays.

 5.  Operational Requirements

The license must be renewed each year by May 1. The license is effective May 1 through April 30. The license is generally renewed upon application and payment of the renewal fee, unless there is a hold on the renewal of the license for violations, objection to renewal by the Michigan Department of Treasury, dissolution of the licensed corporation, and other such things which would prevent the timely renewal of the license. If the reason for the hold on the renewal of the license is not resolved by May 1, the sale (which includes furnishing and giving away) and manufacture of alcoholic beverages must cease until the reason for the hold is resolved and the license is renewed. The license renewal fee is the same as the license fee. License or renewal fees are not prorated.

A Michigan licensed Direct Shipper must register all labels of wine prior to shipping into Michigan. This may be done through the online label registration program. A password is required to access the online registration site which will be mailed along with your license or go to www.michigan.gov/lcc. In the Online Services box select Beer/Wine/Mixed Spirit Drink Product Registration link. Detailed instructions are available on the Login page.

A Michigan licensed Direct Shipper must verify that the person placing the order is at least 21 years of age through obtaining a copy of photo identification issued by the State of Michigan, another state or the federal government or by utilizing an identification verification service. The name, address, date of birth and telephone number of the person placing the order must be recorded on the order form.

A Michigan licensed Direct Shipper must stamp, print or label on the outside of the shipping container language that the package "Contains alcohol. Must be delivered to a person 21 years of age or older". The recipient at the time of delivery is required to provide photo identification verifying his or her age along with a signature.

A Michigan licensed Direct Shipper must place a label on the top of the panel of the shipping container containing the Direct Shipper license number, the order number, the name and address of the individual placing the order and the name of the designated recipient, if different, from the name of the individual placing the order.

A Michigan licensed Direct Shipper must not direct ship more than 1,500 9-liter cases or 13,500 liters in total of wine in a calendar year to Michigan consumers.

A Michigan licensed Direct Shipper must pay any applicable taxes to the MLCC on a quarterly basis and report on a quarterly basis the total amount of wine by type, brand and price shipped to consumers in Michigan during the preceding calendar quarter. Excise taxes are to be reported on the Michigan Wine Tax Report (LC-890) which will be mailed along with your license and is available on the MLCC website at www.michigan.gov/lcc. The Direct Shipper must also pay any applicable taxes to the Michigan Department of Treasury. Contact the Michigan Department of Treasury at (517) 373-3200 or go to http://www.michigan.gov/treasury for further information.

A Michigan licensed Direct Shipper must consent and submit to the jurisdiction of the MLCC, the Michigan Department of Treasury and the courts of this state concerning enforcement of this section and any related laws, rules and regulations.

Michigan law does not allow beer or spirits to be direct shipped to consumers from out-of-state brewers, distillers or retailers.

 6.  Fees

$100 initial license fee.

$100 renewal fee each year by May 1

 7.  Appeal Process

If a license application is denied, the aggrieved license applicant may request an appeal hearing. This request must be made in writing to the Lansing office of the MLCC at 7150 Harris Drive, PO Box 30005, Lansing, MI 48909 within 20 days from the date of the mailing of the decision of denial.

The Hearings and Appeals Section of the Executive Services Division will notify the applicant of the day, date, and time of the scheduled appeal hearing. Appeal hearings of licensing decisions are generally held in the MLCC Lansing office on Tuesdays and in the MLCC Farmington office on Thursdays.

 8.  Public Input Opportunities

There is no opportunity for public input on this application for a Direct Shipper License

E. Contact Information:

Contact Us

 

Creation/Revision Date:

October 8, 2010