TTB Application - Tasting Room and Retail Store Clarification.

[Cody-BGD]

I am in the process of filling out my TTB application and I wanted some clarification on two questions I came across. I plan on having a retail store where I will sell merchandise and bottles of our liquor as well as have a cocktail lounge. I plan on having My DSP, bar, and retail store all separated by floor-to-ceiling walls and all able to be accesible from the outside with their own entrances. However, they will all be located in one bigger building that I will be separating out into the three smaller areas. The way those questions read in the TTB app is that I would not be allowed to have a retail store or bar. But that makes no sense as every single distillery I have visited has either one or both under the same roof as their distillery. Can someone please provide some clarification? Thanks in advance. 

-Cody Scott

 

Will you have a tasting room?: *   YesNo

If you charge for samples, parking, or tours then you are prohibited from establishing a tasting room on the premises. The tasting room must be separate from the distillery with floor to ceiling walls and must have its own entrance. It cannot be part of the distilled spirits plant and must be shown on the diagram. Do you understand this requirement?: *   YesNo

If you do not plan to charge for samples, parking, or tours then the tasting room can be located on the general premises, but must be separate from the bonded premises with floor to ceiling walls, have its own entrance and be shown on the diagram. Do you understand this requirement?: *   YesNo

Will you have a retail store?: *   YesNo

If you are only selling merchandise (e.g., shirts, souvenirs) then the retail store can be located on the general premises and should also be shown on the diagram. Do you understand this requirement?: *   YesNo

Do you plan to sell any alcohol in the retail store?: *   YesNo

If any alcohol is sold in the retail store then you are prohibited from establishing it on the premises. The retail store must be separated from the premises by floor to ceiling wall separation and have its own entrance from the outside. Do you understand this requirement?: *

[glisade]

They way it reads you are doing exactly what is required. Your building isn't a distillery, the distillery is located within your building. You just need to make sure you clearly mark what is your distillery in your building drawing and then mark what is the bonded premises and general premises within the distillery. If you are selling alcohol in the bar and retail spaces, just make sure they are NOT part of your distillery. They should be marked on the drawing but they will NOT be a part of your distillery (general or bonded).

They are just saying if you plan to sell alcohol it can't be in any part of the distillery but if you are just selling merchandise it can be in the general (non-alcohol producing) premises of the distillery. But it's probably best to keep all the bar and retail totally separate from the distillery...otherwise any part that is in your distillery would be under their jurisdiction during an audit.

[Cody-BGD]

I appreciate that clarification. Could you explain a little more the difference between general and bonded premises? I assumed the entire Distillery section would be bonded. The bar and retail store obviously not being bonded because it will technically be separate from the distillery.

[glisade]

I don't think I would make the bar/retail any part of your legal distillery (DSP) at all. The bar/retail may be a part of your distillery business but they are not a part of your legal distillery from the point of view of the TTB. 

So you should make three areas within your building: legal distillery, bar, retail. Your distillery is your DSP and what the TTB regulates. The bar and retail are regulated by your state laws.

Within your distillery, you would have potentially two main areas: bonded and unbonded (general) premises. Bonded premises are where all your alcohol is made, stored, bottled, etc..you have to have the alcohol in this space insured and you pay your federal excise tax once your alcohol LEAVES the bonded area; no matter where it goes.

General premises is maybe offices, storage, etc..where no unpaid excise tax alcohol will be stored. If you decide you ran out of room in your bonded premises and want to store bottled and boxed alcohol in your general premises you would have to pay the excise tax on it even if it's not sold. Most smaller distilleries are probably in 100% bonded premises.

[Cody-BGD]

Thank you for your help and quick response. That all makes sense. I greatly appreciate it. It can be a little complicated for a newbie like myself.