Direct Shipper Licensing Requirements & General Information
A Direct Shipper license is required for a wine manufacturer located in Michigan or in another state to ship wine directly to consumers in Michigan, pursuant to MCL 436.1203.
Qualifications for Direct Shipper License
Must be licensed as a wine manufacturer
Pursuant to MCL 436.1203(10), a Direct Shipper license may only be issued to the following:
- A Wine Maker. Wine Maker is defined in MCL 436.1113 and is a specific license type issued to wine manufacturers located in Michigan. It also includes Small Wine Maker licensees, which are also wine manufacturers located in Michigan. Wine Maker and Small Wine Maker licenses are not issued to wine manufacturers that are located in other states.
- A wine manufacturer located in another state that holds both a Federal Basic Permit issued by the TTB and a license to manufacture wine in its state of domicile.
Must manufacture and/or bottle wine
Pursuant to MCL 436.1203(25)(i), a wine manufacturer issued a Direct Shipper license must do one of the following actions in relation to the wine it will ship directly to consumers in Michigan:
- Manufacture, bottle, label, and register with the Commission the wine to be shipped directly to consumers in Michigan.
- In compliance with MCL 436.1204a, purchase bulk wine from another wine manufacturer, further manufacture the bulk wine as described in the definition of “manufacturer” in MCL 436.1109(1), and bottle, label, and register with the Commission the wine to be shipped directly to consumers in Michigan.
- Pursuant to MCL 436.1109(1), "Manufacture" means to distill, rectify, ferment, brew, make, produce, filter, mix, concoct, process, or blend an alcoholic liquor or to complete a portion of 1 or more of these activities. Manufacture does not include bottling or the mixing or other preparation of drinks for serving by those persons authorized under this act to serve alcoholic liquor for consumption on the licensed premises. In addition, manufacture does not include attaching a label to a shiner. All containers or packages of alcoholic liquor must state clearly the name, city, and state of the bottler.
- In compliance with MCL 436.1204a, purchase bulk wine from another wine manufacturer, bottle the bulk wine, and label and register with the Commission the wine to be shipped directly to consumers in Michigan.
Shipping wine sold or transferred to the manufacturer as shiners
Pursuant to MCL 436.1203(25)(i) and in compliance with MCL 436.1204a, a wine manufacturer issued a Direct Shipper license may purchase shiners of wine as defined in MCL 436.1111(10) from another wine manufacturer and label and register with the Commission the wine to be shipped directly to consumers in Michigan. A Direct Shipper licensee may only ship wine to consumers under this option if it is also doing at least one of the actions in the requirements for manufacturing in 2(a), 2(b), or 2(c) listed above, pursuant to MCL 436.1204a(2)(a)(ii).
- Pursuant to MCL 436.1111(10) "Shiner" means an unlabeled, sealed container of wine, including a keg, that is sold by a wine maker, small wine maker, or out-of-state entity that is the substantial equivalent of a wine maker or small wine maker to another wine maker, small wine maker, or out-of-state entity that is the substantial equivalent of a wine maker or small wine maker. The purchasing wine maker or small wine maker must attach a label to the container using equipment owned or leased by the purchasing wine maker or small wine maker, register the wine label with the commission, and sell it as provided for in this act.
Limits on shipments
A Direct Shipper licensee must not ship more than 1,500 9-liter cases, or 13,500 liters, in total of wine in a calendar year to Michigan consumers.
Shipping Requirements
- The Direct Shipper licensee must register all labels of wine prior to shipping into Michigan through the Sales Inventory Purchasing System (SIPS+) online label registration program. A password is required to access the on-line registration site, which will be emailed within 24 hours after the issuance of your license.
- The Direct Shipper licensee 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 licensee must record the name, address, date of birth and telephone number of the person placing the order on the order form.
- The Direct Shipper licensee 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.
- The Direct Shipper licensee must place a label on the top of the panel of the shipping container containing 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.
- Pursuant to administrative rule R 436.1719(2), bottled wine shall not be shipped, delivered, or otherwise introduced into this state unless it is accompanied by an invoice, manifest, or other shipping document listing the quantity of bottled wine by brand name that is being shipped, delivered, or introduced into this state.
- The Direct Shipper licensee must pay applicable excise 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-3890). The licensee must also pay any applicable sales or use taxes to the Michigan Department of Treasury. Contact the Department of Treasury at (517) 636-6925 or visit www.michigan.gov/taxes/business-taxes/sales-use-tax for further information.
- The Direct Shipper licensee must consent and submit to the jurisdiction of the MLCC, the Michigan Department of Treasury, and the courts of the State of Michigan concerning enforcement of this section and any related laws, rules and regulations.
