§ 68 — Direct interstate liquor shipments

§ 68. Direct interstate liquor shipments. 1. Authorization.\nNotwithstanding any provision of law, rule or regulation to the\ncontrary, any holder of a license to manufacture liquor in any other\nstate that is equivalent in class and/or production capacity per year to\nthose licenses authorized to make direct intrastate liquor shipments\nunder section sixty-nine of this article, who obtains an out-of-state\ndirect shipper's license, as provided in this section, may ship no more\nthan thirty-six cases (no more than nine liters each case) of liquor\nproduced by such license holder per year directly to a resident of New\nYork who is at least twenty-one years of age, for such resident's\npersonal use and not for resale, provided the state in which such person\nis so licensed affords lawful means for shipments of liquor to be\nreceived by a resident thereof who is at least twenty-one years of age,\nfor such resident's personal use and not for resale, from a person\nlicensed in this state as a manufacturer and, provided further, that the\nstate in which such out-of-state distillery is located affords to New\nYork state licensed manufacturers with the privilege of producing liquor\nreciprocal shipping privileges, meaning shipping privileges that are\nsubstantially similar to the requirements in this section. No person\nshall place an order for shipment of liquor unless they are twenty-one\nyears of age or older. Any common carrier with a permit issued pursuant\nto this chapter to whom such out-of-state shipper's license is presented\nis authorized to make delivery of shipments provided for hereunder in\nthis state in compliance with this section.\n 2. License. Before sending any shipment hereunder to a resident in\nthis state, the out-of-state shipper shall first obtain a license from\nthe authority under procedures prescribed by rules and regulations of\nthe authority and after providing the authority with a true copy of its\ncurrent license to manufacture liquor in the applicant's state of\ndomicile along with a copy of the applicant's federal basic permit after\npayment of an annual fee of one hundred twenty-five dollars.\nNotwithstanding the provisions of section one hundred ten of this\nchapter, the authority in its discretion, may excuse an out-of-state\ndistillery from the submission of such information.\n 3. Licensee's responsibilities. The holder of an out-of-state direct\nshipper's license:\n (a) shall ship no more than thirty-six cases (no more than nine liters\neach case) per year of liquor produced by such license holder directly\nto a New York state resident who is at least twenty-one years of age,\nfor such resident's personal use and not for resale;\n (b) may ship within the same packaging any and all alcoholic beverages\nit lawfully produces and which it sells in accordance with its shipping\nprivileges and responsibilities pursuant to the provisions of this\nsection and sections thirty-five, fifty-nine-b, and seventy-nine-c of\nthis chapter, as applicable;\n (c) shall ensure that the outside of each shipping container used to\nship liquor directly to a New York resident is conspicuously labeled\nwith the words: "CONTAINS ALCOHOLIC BEVERAGES - SIGNATURE OF PERSON AGE\n21 OR OLDER REQUIRED FOR DELIVERY - NOT FOR RESALE," or with other\nlanguage specifically approved by the New York state liquor authority;\n (d) shall maintain records in such manner and form as the authority\nmay direct, showing the total amount of liquor shipped into the state\neach calendar year; the names and addresses of the purchasers to whom\nthe liquor was shipped, the date purchased, the name of the common\ncarrier used to deliver the liquor, and the quantity and value of each\nshipment;\n (e) shall in connection with the acceptance of an order for a delivery\nof liquor to a New York resident, require the prospective customer to\nrepresent that he or she has attained the age of twenty-one years or\nmore and that the liquor being purchased will not be resold or\nintroduced into commerce;\n (f) shall require common carriers to:\n (i) require a recipient, at the delivery address, upon delivery, to\ndemonstrate that the recipient is at least twenty-one years of age by\nproviding a valid form of photographic identification authorized by\nsection sixty-five-b of this article;\n (ii) require a recipient to sign an electronic or paper form or other\nacknowledgement of receipt as approved by the authority; and\n (iii) refuse delivery when the proposed recipient appears to be under\ntwenty-one years of age and refuses to present valid identification as\nrequired by subparagraph (i) of this paragraph;\n (g) shall file returns with and pay to the New York state department\nof taxation and finance all state and local sales taxes and excise taxes\ndue on sales into this state in accordance with the applicable\nprovisions of the tax law relating to such taxes, the amount of such\ntaxes to be determined on the basis that each sale in this state was at\nthe location where delivery is made;\n (h) shall keep all records required by this section for three years\nand provide copies of such records, upon written request, to the\nauthority or the department of taxation and finance;\n (i) shall permit the authority or the department of taxation and\nfinance to perform an audit of such out-of-state shipper upon request;\n (j) shall execute a written consent to the jurisdiction of this state,\nits agencies and instrumentalities and the courts of this state\nconcerning enforcement of this section and any related laws, rules, or\nregulations, including tax laws, rules or regulations; and\n (k) shall prior to obtaining an out-of-state direct shipper's license,\nobtain a certificate of authority pursuant to section eleven hundred\nthirty-four of the tax law and a registration as a distributor pursuant\nto sections four hundred twenty-one and four hundred twenty-two of the\ntax law.\n 4. Situs. Delivery of a shipment in this state by the holder of an\nout-of-state direct shipper's license shall be deemed to constitute a\nsale in this state at the place of delivery and shall be subject to all\nexcise taxes levied pursuant to section four hundred twenty-four of the\ntax law and all sales taxes levied pursuant to articles twenty-eight and\ntwenty-nine of such law.\n 5. Renewal. The out-of-state shipper may annually renew its license\nwith the authority by paying a one hundred twenty-five dollar renewal\nfee, providing the authority with a true copy of its current license in\nsuch other state as an alcoholic beverage manufacturer and by complying\nwith such other procedures as are prescribed by rule of the authority.\n 6. Rules and regulations. The authority and the department of taxation\nand finance may promulgate rules and regulations to effectuate the\npurposes of this section.\n 7. Enforcement. The authority may enforce the requirements of this\nsection including the requirements imposed on the common carrier, by\nadministrative proceedings to suspend or revoke an out-of-state\nshipper's license and the authority may accept payment of an\nadministrative fine in lieu of suspension, such payments to be\ndetermined by rules or regulations promulgated by the authority. In\naddition, the authority or the attorney general of the state of New York\nshall report violations of this section, where appropriate, to the\nUnited States department of treasury, tax and trade bureau, for\nadministrative action to suspend or revoke the federal basic permit.\n 8. Violations. In any action brought under this section, the common\ncarrier and the licensee shall only be held liable for their independent\nacts.\n