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Beer Distribution 101: Licensing and States That Require Permits to Transport Alcohol
Published Date: 08 June 2022
After going through the hoops of registering your own craft brewing company, you’re finally able to sell your home brew to people—and it’s doing well! At least, locally.
Out-of-state distribution is a big step for many brewers, especially when considering legalities such as licensing and determining the states that require permits to transport alcohol. In this blog, we break down alcohol transportation permits and regulations that you need to know.
Let’s get started.
Foreign Qualification and State Licensing
If you’re licensed to sell beer in your home state, it would be a different ballgame for out-of-state distribution. That’s because each state sets up its own rules and has its own governing body that would enforce those rules.
In California, for example, it’s the California Department of Alcoholic Beverage Control that would enforce rules on alcohol. In Illinois, it would be Illinois Liquor Control Commission, and so on.
In some states, you might be required to register as a foreign qualified entity in the state where you’re planning to distribute your beer. That means there might be additional licensing obligations and business tax you need to comply with before you can transact business in that state.
If not as a foreign entity, other states require that you file for a state-specific license or register with your target state’s alcohol regulatory agency.
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States That Require Permits to Transport Alcohol
Let’s say you’ve complied with all the licenses and requirements to sell beer in other states. Another thing you need to be aware of is the permits needed to transport your beer.
Alcohol transportation is largely regulated at the state level. That means alcohol-specific transportation licenses and permits are on a state-by-state basis.
Around 50% of the lower 48 states require a license or permit to transport alcohol into, through, or out of state. The scope of the permit or license varies as well.
For example, some states only require a transport permit for certain types of alcohol but not for others. Other states may require a permit only if you stop and deliver within the state, and not when you’re just passing through.
There’s no one-size-fits-all approach when it comes to seeking and obtaining an alcohol transport permit. To avoid roadside surprises, particular attention must be paid to each state’s rules and regulations.
You can use the table below as a general reference on the permit and agency you should contact for alcohol transport permits and licenses for each state. However, it should not be construed as legal advice. It would be best to contact the listed agencies for the most updated information.
It is worth noting that there are states (such as certain counties in Texas) that are “dry” and therefore do not allow alcohol transport.
Brew Movers: Helping You Expand
Expanding to new markets can be an exciting time. But understanding licensing requirements, the states that require permits to transport alcohol, and all the nuances of distribution must come first.
If you’re ready to expand your operations and need a hand in transporting your beer, Brew Movers can help.
With our industry connections, knowledge, and over two decades of experience in cold chain shipping, brewery, festival, and brewery equipment and tanks logistics, you can be sure we have what it takes to get your beer to its destination smoothly and on time.
Contact us today to know more.
