North Carolina

The North Carolina Alcoholic Beverage Control Commission is an independent government agency under the state Department of Public Safety (DPS). ABC Commission is responsible for permitting, warehousing and transport of liquor as well as the prosecution of administrative violations of ABC laws. NC ABC Commission is the wholesale distributor of spirits in the state. Beer and wine are distributed by private wholesalers to retail businesses permitted by the Commission.

Wine over 16% may be sold by private wholesalers AND through the state control system.

Laws & Rules:

• NC General Statutes Chapter 18 – B Regulation of Alcoholic Beverages
• ABC Rules – 14B NCAC
• ABC Legislative updates
• NC General Statutes Chapter 105 Article 2C. Alcoholic Beverage License and Excise Taxes.

Required:  Yes

Name:  Nonresident Wine Vendor Permit

Fee:  $100

Expiration: Perpetual

Bond: may be required

A nonresident wine vendor permit allows the holder to sell, deliver, and ship unfortified and fortified wine in North Carolina only to licensed wholesalers, importers, and bottlers licensed, as authorized by the ABC laws.

A nonresident wine vendor permit may be issued to a winery, a wholesaler, an importer, or a bottler outside North Carolina who desires to sell, deliver, and ship unfortified and fortified wine into this State.

Permits do not expire and if there is any change in location or ownership, a winery must apply for a new permit.

Resources:

• How to Apply for an Out-of-State Commercial Permit
• Nonresident Vendor Permit Application
• B-C-785 Alcoholic Beverage Excise Tax Registration Form (6-21)

Required: Yes

Fee: No Fee

Approval: approximately 3 weeks from the date received

Expiration: does not expire

Revision Required:  Size, Tax Class, COLA Change

As of Jan. 1, 2022, all product and label approval requests should be sent to the ABC Commission via email to product@abc.nc.gov.  Email attachments should be in Adobe PDF format.

Complete Label/Product Application (BWL-008). Attach copy of federal label approval, a complete set of original labels (include all labels for each size being shipped), completed product analysis statement. If submitting a new brand attach a Distribution Filing form (ART12-13). If the Federal COLA is not in the supplier’s name, you must submit an authorization letter allowing you to use their federal COLA for registration purposes. The ABCC will notify the applicant of the label/product approval or disapproval.

A number will be assigned to each product being submitted whether approval or disapproval is granted. The suffix of the code number determines how the product is classified by the state. B – malt beverage U – unfortified wine F – fortified

Do not submit a label revision if the only change in the label is a yearly vintage change.

On Oct. 4, 2019 the North Carolina ABC issued a Memorandum informing industry members that after Jan. 31, 2020, it will stop charging the current $10 fee for wine and beer product label registrations.

Resources:

• Product Approval Guidance 
• Wine Label Product Application  – submit via email
• Wine Distribution Agreement Filing Form
• Private Label Guide
• Negociant Form
• Variety Pack Approval Form
• Product Approval Fortified Wine
• Product Approval Unfortified Wine
• Beer & Wine Product Approvals FAQs

Franchise Law:  Yes

Exclusive Territories:  Required

Please review the law in its entirety and consult legal counsel prior to taking any action.

A winery cannot terminate a wholesaler without cause or provocation. Change of winery ownership is not good cause.

Good cause includes bankruptcy, license revocation or failure to substantially comply without reasonable excuse or justification. The burden of proof is on the winery.

A winery must provide the wholesaler with 90 days notice stating the reasons for termination. The wholesaler has 60 days to correct its behavior. If the wholesaler cannot correct its behavior it can demand a hearing before the ABC on the good cause issue.

A winery may not grant the right to sell a specific brand to more than one wholesaler in the same sales territory.

If a wholesaler’s business is transferred to a new owner the winery cannot object or refuse meet its terms of the agreement unless with the new owner does not meet the material and reasonable qualifications and standards required of the winery’s wholesalers. In no event can a winery refuse to fulfill the terms of an existing agreement if the wholesaler transfers ownership of the business to a member of his family. Family is defined a spouse, parents, siblings and lineal descendents (including those by adoption).

Nonresident Wine Vendor Permittees and wineries located in NC are required to submit territorial assignments once their company ships a total of 1,250 cases into the State. This is per calendar year. When registering new brands, prior to reaching this volume, these permittees may submit the form indicating they do not sell more than 1,250 cases. Each Distribution Agreement shall designate a sales territory of the named wholesaler. A supplier may not enter into more than one agreement for each brand of wine or malt beverage that it offers in any territory.

A separate Distribution Agreement Filing Form must be completed for each brand and NC wholesaler designated to carry such brand. A copy of the completed form must be submitted to the ABCC and the wholesaler distributor.

Citations:

• Wine Product Distribution
• N.C.G.S. 18B-1200 et. seq. Wine Distribution Agreements
• Distribution Agreement Filing Form & Instructions

Required:  Yes

Name:  B-C-788 Nonresident Wine Vendor Monthly Report For Transactions to N.C. Wine Wholesalers, Importers, or Bottlers

Due Date:  Monthly, by the 15th

Effective for January 2019 returns to be filed by February 15, 2019 and after, the holder of a nonresident wine vendor permit must file the B-C-788 Nonresident Wine Vendor Monthly Report for Transactions to N.C. Wholesalers on or before the 15th day of every month. No activity reports are required.

For calendar year 2018 and prior, nonresident vendors should file Form B-C-786, Wineries, Wine Shipper Permittees, and Nonresident Wine Vendors Excise Tax Return.

Please note a nonresident wine vendor that also holds a direct wine shipper permit must also file Form B-C-786, Wine Shipper Permittee Annual Excise Tax Return, each year.

Resources:

• B-C-788, Nonresident Wine Vendor Monthly Report (for July 2021 and after)
• Instructions – B-C-788, Nonresident Wine Vendor Monthly Report (for July 2021 and after)
• B-C-788 Nonresident Wine Vendor Monthly Report and instructions (for Jan. 2019 through June 2021)
• NCDOR Notice on Revised Alcoholic Beverage Tax Forms – Dec. 21, 2018

Available:  Yes

Fee:  $50

Expiration:  Perpetual

A Vendor Representative is a person who represents a NC winery, NC brewery, NC importer or, a nonresident vendor. This person is allowed to visit North Carolina calling on wholesale businesses, driving and delivering products to NC wholesalers. This person does not have to be a NC resident.

The vendor representative may sell, deliver, and ship alcoholic beverages in this State only to permittees to whom the commercial permittee he represents may sell, deliver, or ship.

There is a $50 one-time fee for this for this permit, and it does not require renewal.

Resources:

• How to Apply for a Vendor Representative Permit
• Vendor Representative Permit Application
• What is the difference between a vendor representative and a wholesale salesman?

Allowed:  No 

There are no statutory or regulatory provisions allowing an out-of-state winery to self-distribute.

• NC ABC Memo, Oct. 4, 2019 (pricing, brand registration fees, ownership interests)
• ABC Announcements 
• ABC FAQs
• NCDOR Notice to Alcoholic Beverage Permittees – Aug. 21, 2018
• NCDOR Alcoholic Beverage Tax FAQ – updated Jan. 28, 2020
• Alcoholic Beverages Tax Bulletin rev. 2-22