CRAFT DISTILLERY
T
axes and Compliance. The very mention of these two
words is bound to bring forth an
instant change in the demeanor of an otherwise optimistic and enthusiastic
distillery
owner.
Federal, State and Local Taxes and Compliance measures are the collective dirty underbelly of the spirits industry. Often unintentionally overlooked, the lack of adherence to these rules, regulations, procedures and protocols is the biggest liability that a distillery will face. Adhering to these measures is vitally important and something that no distillery can afford to
ignore.
In
this
second
installment of three articles, we’ll talk about the tall task that all distillery owners face – the job behind the job: Taxes and Compliance. In 2013, Beam Global sold 37
million
9-liter-equivalent
cases (750 mL bottles, 12 units per case). In that same time period, over four hundred craft distillers sold a fraction of that volume. The operations at
S E X A T D N A E C N A I L P M O C PART TWO
WRITTEN BY JASON LIPPA
Jim Beam and a craft distillery differ immensely in nearly every way, however both entities share
agency known as the Alcohol and Tobacco Tax and Trade Bureau
one thing in common: Federal Regulatory Compliance duties. (TTB) and reside within the Code of Federal Regulations (known Currently in the United States, no matter the size of a Distilled as the CFR). As a whole, the CFR consists of 50 “titles” covering Spirits Plant (DSP) operation or the volume of spirit produced
broad subject areas. Each title within the CFR is divided
and sold, every DSP operates beneath the same set of rules, into “chapters,” then “parts,” which cover a more particular subject. Each part is divided into “sections” containing specific regulations and reporting protocols. These regulations are issued and enforced by the Federal
regulations.
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