Outstate Self-Distributor (OSSD) License

Outstate Self-Distributor (OSSD) Licensing Requirements & General Information

    An Outstate Self-Distributor (OSSD) license, as defined by MCL 436.1109(10), is issued by the Michigan Liquor Control Commission to an alcoholic beverage manufacturer located another state to sell and self-distribute the products it manufacturers (beer, wine, mixed spirit drink, or spirits products)  that have not been manufactured in Michigan to retailer licensees in Michigan.  An OSSD licensee must be the manufacturer of the finished and bottled products self-distributed to retailer licensees in Michigan. 

     The OSSD licensee must not deliver alcoholic beverage products to a retailer located in a sales territory for which the exclusive sales rights for the alcoholic beverage products are already granted to a Wholesaler licensee. 

     All deliveries must be made by the licensee’s own employees. The employees must be individually licensed with a Salesperson license, unless otherwise exempt under the law. Please visit the Salesperson License Information webpage for more details on Salesperson license requirements.

     All deliveries must be made in vehicles owned by the licensee. These vehicles must have been issued a delivery vehicle decal by the MLCC. The licensee may apply for vehicle decals using the Delivery Vehicle Decal Application (LCC-351).

    The OSSD licensee must register its products in Sales Inventory Purchasing System (SIPS+) and must report and pay the applicable taxes on the products sold.

     Alcoholic beverage containers self-distributed by the OSSD licensee must conform to the bottle deposit requirements of 1976 IL 1, MCL 445.571 to 445.576, commonly referred to as the “Bottle Bill”, as applicable.

    An OSSD licensee may self-distribute alcoholic beverage products into Michigan, subject to the following limits:

• Beer - no more than 2,000 barrels of beer of all its brands combined per calendar year.
• Mixed Spirit Drink - no more than 31,000 gallons per calendar year.
• Spirits - no more than 3,000 gallons per calendar year.
• Wine - no quantity limits.

      For more details on self-distribution requirements in Michigan, please visit the Self-Distribution Information webpage.     

Required Forms, Fees, and Documents

All applicants requesting a new Outstate Self-Distributor (OSSD) license must submit the following:

Application Form

Outstate Self-Distributor License Application (LCC-159)

Inspection Fee

A $70.00 nonrefundable inspection fee is required.

License & Permit Fees

The initial and annual renewal fee for an OSSD license is $300.00.  A $50.00 fee is required for each delivery vehicle decal requested.

Manufacturing License from State of Issuance

Applicants must provide a copy of the manufacturing license from the state of issuance for the type of alcoholic beverage products it manufactures and will self-distribute in Michigan.

Federal Brewer's Notice or Basic Permit

Applicants must provide a copy of the federal Brewer's Notice or Basic Permit issued by the federal Alcohol and Tobacco Tax and Trade Bureau (TTB).

In addition to the documents required by all applicants:

Corporations must submit the following information per Administrative Rule R 436.1109:

• Report of Stockholders/Members/Partners (LCC-301)
• Copy of current, filed Articles of Incorporation.
• Current Certificate of Good Standing from the state where incorporated and Certificate of Authority to Do Business in Michigan, if incorporated outside of this state.
• Certified copy of the minutes of a meeting of its board of directors or a statement signed by an officer of the corporation naming the persons authorized by corporate resolution to sign the application and other documents required by the Commission (or Part 3 of Form LCC-301).

Limited Liability Companies (LLC) must submit the following information pursuant to Administrative Rule R 436.1110:

• Report of Stockholders/Members/Partners (LCC-301)
• Copy of Articles of Organization and copies of any amendments to the Articles of Organization.
• Current Certificate of Authority to Do Business in Michigan, if the LLC is a non-Michigan LLC.
• Copy of Operating Agreement entered into by members.
• Copy of most recent annual statement filed with the Corporations Division, if an existing LLC.
• Statement signed by a manager of the limited liability company or by at least 1 member if management is reserved to the members naming the person authorized to sign the application and other documents required by the Commission (or Part 3 of Form LCC-301).

Partnerships must submit the following information per Administrative Rule R 436.1111:

• Report of Stockholders/Members/Partners (LCC-301)
• Partnership Agreement, if a Limited Partnership.

Manufacturing & Labeling

Alcoholic beverage products must be manufactured in accordance with federal regulations published in the Code of Federal Regulations (CFR), pursuant to the Michigan administrative rules.

Alcoholic beverage products sold in Michigan must be labeled in accordance with TTB regulations and must have labels approved by the Commission prior to being sold.  Alcoholic beverage product labels must have a TTB Certificate of Label Approval (COLA), as applicable, and be registered online in the Sales Inventory Purchasing System (SIPS+) program.  Upon licensure, the applicant will be provided with a password and instructions to access the on-line registration site. There is no fee for Michigan label registration.  

Mandatory label information, pursuant to TTB regulations:

• Brand name.
• Class, type or, in lieu of, a truthful & adequate statement of composition shall appear on the brand label of the product.
• Name and address of bottler or packer where bottled or packed.
• Net contents.
• Government Warning Statement.
• Alcohol content by volume.

For federal labeling information contact the TTB at www.ttb.gov.

Beverage Deposit & Container Law

Under Michigan’s Beverage Containers Act (also known as the “Bottle Bill”), a dealer, meaning a person who sells beverage containers to consumers, cannot sell a consumer a beverage in a nonreturnable container.  A “nonreturnable container” means a beverage container upon which no deposit has been paid.  “Beverage” includes beer, ale, malt drink, mixed wine drink, or mixed spirit drink, in addition to nonalcoholic carbonated drinks.  Thus, a licensee who sells products that fall within the definition of “beverage” in a container that does not exceed 1 gallon must collect a deposit of at least 10 cents during the sale.  If a person returns a container to the licensee, the licensee generally must refund the deposit, even to a non-customer, as long as the licensee offers that brand for sale.  For more information on the Bottle Bill, please contact the Michigan Department of Treasury’s Miscellaneous Taxes and Fees Unit at 517-636-0515.

Alcoholic Beverage Excise Tax Reports

   An OSSD license is required to submit the required tax reports and excise tax payments on or before the 15th day of each quarter for the previous quarter’s shipments (April 15, July 15, October 15, and January 15).

• The Michigan beer excise tax is $6.30 per barrel.  A barrel is 31 gallons.
• The Michigan wine excise tax is $0.135 per liter for wine that is 16% alcohol by volume or less and $0.20 per liter for wine over 16% alcohol by volume.
• The Michigan mixed spirit drink excise tax rate is $0.30 cents per liter.
• The Michigan spirits excise tax rate will be calculated by the MLCC once a product has been registered in the SIP+ system based on the product returning a profit of 65% to the Commission.

For further questions relating to beer tax, please contact our Financial Management Division at 517-284-6260. Tax forms and instructions may be located on the Financial Management Division's Tax Forms & Instructions webpage.

Salesperson Licenses

Any person employed by a manufacturer licensee to sell, deliver, promote, or otherwise assist in the sale of alcoholic liquor in this state is required to hold a Salesperson license issued by the Commission. Employees who work exclusively at the manufacturing premises and have no contact with wholesalers, retailers, or consumers off the licensed premises do not need a Salesperson license. Salesperson licensees must be at least 18 years of age and are prohibited from being employed by a retailer-tier licensee on a paid or any other basis. For more details on Salesperson licensee requirements and exceptions to the requirements for certain employees please visit the Commission’s webpage for Salesperson licensing information.

Records Retention and Inspection of Premises and Records

All licensees are required to maintain all sales, purchase, and Salesperson licensee expense records for a minimum of four years. Records may be maintained electronically or otherwise as long as a hard copy of the record can be created upon demand.

A licensee must make the licensed premises available for inspection and search by a Commission Investigator or any law enforcement officer empowered to enforce the Commission’s rules and code during regular business hours or when the premises is occupied. The Commission or its duly authorized agent may examine the books, records, or papers of a licensee.