(a) Notwithstanding § 501 of this title, upon proper application and subject to the applicable provisions, restrictions and prohibitions of this title, the Commissioner may grant a wine direct shipper license to any person who is a farm winery as defined by § 512A of this title or a manufacturer, as determined by the Commissioner, that would qualify for a license under § 512A of this title if the manufacturer were physically located in this State.
(b) A person who is licensed as a wine direct shipper under this section may ship up to 3 9-liter cases of wine annually to a household located in this State if a member of the household is at least 21 years of age and the wine is for the household’s personal use and not for resale.
(c) An application for a wine direct shipper license must contain all of the following:
(1) The application materials required by the Commissioner.
(2) A true copy of the applicant’s state-issued alcohol license and Federal Basic Permit.
(d) A wine direct shipper licensee may not:
(1) Ship wine to any person who is under the age of 21. In any prosecution for an offense under this subsection, it is an affirmative defense if the individual, who has not reached the age of 21 years, presented to the accused identification, with a photograph of such individual affixed thereon, which identification sets forth information which would lead a reasonable person to believe such individual was 21 years of age or older.
(2) Ship more than 3 9-liter cases of wine annually to any household for the household’s personal use.
(3) Ship any wine for resale.
(4) Ship more than 1,800 9-liter cases into this State per year under this section. A direct shipper licensee that ships into Delaware 1,800 9-liter cases in 1 year will have its direct shipper license cancelled by the Commissioner and must apply for a supplier license pursuant to § 501 of this title.
(5) Ship wine if they are currently represented in this State by a licensed importer/wholesaler. This shall include wineries that are a subsidiary of a larger wine manufacturer or a supplier licensed pursuant to § 501 of this title that is listed in a licensed importer/wholesaler’s current price publication designated by the Commissioner. All licensed importers/wholesalers shall provide in the manner and timing as required by the Commissioner, monthly price lists that include the manufacturers, names of the products, and any identifying SKU numbers. The Commissioner will remove proprietary price information before posting the importer/wholesaler’s monthly lists on the Office of the Alcoholic Beverage Control Commissioner’s publicly-available webpage.
(e) A wine direct shipper licensee must:
(1) Deliver wine for shipment into this State only to a common carrier who has a common carrier license issued by the Commissioner as provided in § 527 of this title.
(2) Ensure that all containers of wine shipped directly to a resident of this State are conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF INDIVIDUAL AGE 21 OR OLDER REQUIRED FOR DELIVERY”. Upon delivery, the carrier delivery person shall be required to scan, and retain as proof of age verification, the required state-issued driver’s license or state-issued identification card.
(3) a. If located outside of this State:
1. Report the following to the Commissioner and the Division of Alcohol and Tobacco Enforcement ( “DATE” ) monthly, or more frequently as required by rules promulgated by the Commissioner that are based upon quantity of product shipped:
A. The total amount of wine shipped into this State in the preceding quarter.
B. The name and address of the individuals to whom the wine was sold and the amount of wine sold in each sale.
C. The tracking number for each shipment.
D. The name and license number of the common carrier to whom the order was sent for delivery.
2. Pay to the Division of Revenue monthly, or as otherwise required by regulations promulgated by the Commissioner, all excise taxes due on sales to residents of this State at the rate set forth in § 581(d) of this title. The amount of such taxes must be calculated as if the sale were in this State at the location where delivery is made.
b. The information reported under paragraph (e)(3)a.1. of this section is exempt from the requirements of Chapter 100 of Title 29.
(4) a. If located within this State, pay to the Division of Revenue monthly, or as otherwise required by regulations promulgated by the Commissioner, all excise taxes due on sales to residents of this State as required by § 581(b) of this title and provide the Division of Revenue, DATE, and the Commissioner any additional information deemed necessary beyond that already required for retail sales from a farm winery to ensure compliance with this section including the following:
1. The total amount of wine shipped under this section in the preceding quarter.
2. The name and address of the individuals to whom the wine was sold and the amount of wine sold in each sale.
3. The tracking number for each shipment.
4. The name and license number of the common carrier to whom the order was sent for delivery.
b. The information reported under paragraph (e)(4)a. of this section is exempt from the requirements of Chapter 100 of Title 29.
(5) Permit DATE, the Commissioner, or the Division of Revenue to perform an audit of the wine direct shipper licensee’s records upon request.
(f) A wine direct shipper licensee is deemed to have consented to the jurisdiction of the Commissioner or any other state agency and the courts of this State concerning enforcement of this section and any related laws, rules, or regulations.
(g) The Commissioner and the Division of Revenue may establish rules and regulations necessary for the implementation of this section.