OWS Direct FAQ
OWS Direct Shipping Procedures
Oregon Wine Services can now ship your wine to 29 Permit States under the OWS Direct Program. Additionally, Oregon Wine Services can ship to another 13 states of which: 4 are Open States including the District of Columbia, 5 are On-Site Only States, and 5 are Permit States that require the winery to hold the permit. Simply complete and submit the "OWS Fulfillment Order Form" or an approved alternative form and check the "Shipping under OWS Direct" box. We will take care of the rest: all permitting, compliance, reporting and fulfillment (see attached pricelist).
This service is available to OWS storage clients and is conducted and priced on a per-package basis. If you'd like to take advantage of this service, please follow the steps outlined below and we will get your package to its destination, hassle-free.
Steps to Follow when using OWS Direct:
- At time of sale, collect appropriate sales tax.
- Ensure that the product to be shipped is in our inventory. If not in stock we require 48 hours to process inventory that has been dropped off for shipping.
- Submit shipping instructions using our "OWS Fulfillment Order Form" or a pre-approved alternate format. Indicate on the form that the order is to be shipped utilizing the service by checking the "Shipping under OWS Direct" box.
Note: Orders that do not indicate OWS Direct is to be used will be assumed to be a standard fulfillment order and subject to the normal fulfillment permit verification process prior to shipment. - Billing for OWS Direct service is done twice a month. First, for the period of the 1st through the 15th and the second for the period of the 16th through the end of the month. The billing for the applicable sales/use and value based excise taxes will be billed at the time that OWS files the applicable state return and pays the tax, generally monthly.
We encourage Clients to maintain accurate records of the orders that they ship utilizing this service and clearly differentiate these orders from orders not using this service. As noted in the following FAQs we highly recommend that you use your own permit if you have one and do not alternate between using your permit and utilizing OWS Direct.
1. What do I do with my current permits?
OWS would "highly recommend" that you utilize your existing permits or acquire the necessary state permits when anticipated sales volume supports the permit cost. Further, if it is compliance reporting that is the concern or hesitation, our Compliance Department offers ongoing reporting services.
The original goal of OWS Direct was to provide the capability of direct ship to our OWS Clients that cannot justify the cost of obtaining and maintaining selected state direct ship permits. We recommend that our Clients closely evaluate the cost of acquiring direct ship permits if the existing or potential customer base will support it. Again, our Compliance Department can assist you in the evaluation, the application and the ongoing reporting.
2. Do I have to ship all my packages under your permits?
Absolutely not. As answered in question #1, the answer is just the opposite. We encourage and recommend that you utilize your own permit if available or acquire the permits that are cost justifiable.
If you cannot justify the cost of a state's permit or are in the process of acquiring it then OWS Direct is available to you. We have attempted to make this service simple, easy to use and convenient. There are no minimums and no obligations. It is handled on a package by package basis.
3. What are my reporting responsibilities?
The initial requirement for the first time user of the OWS Direct service is the completion of the OWS Direct Service Agreement. The purpose of this agreement is to specifically answer this question by outlining the responsibilities of both the client and OWS. Ongoing, your responsibility is simply to supply all of the information that is required as specified by the OWS Direct Service Agreement. Additionally, we may need you to provide further information and permissions to support some of the state's direct ship requirements.
If you are an existing OWS Direct client and have not read and completed the OWS Direct Service Agreement please contact the Compliance Department and they will supply you with the agreement and answer any questions you may have.
4. How do I get an order to you?
We have developed a new "OWS Fulfillment Order Form" for use with this service, as well as our standard fulfillment service. We can provide you with copies of this form via email or fax. Just fill out the form completely, fax or email it back to us and we will process your order.
5. How much lead time do you need to ship under this service?
Orders received prior to 3PM will ship the next business day.
If the product is not in stock we require 48 hours to process inventory that has been dropped off for shipping.
6. How much can I ship under the service?
Under this service we still have to follow aggregate limit shipping guidelines. These vary by state. For general information on aggregate shipping limits, please visit the Wine Institute's website at www.wineinstitute.org or contact our Compliance Department.
7. How do you manage aggregate limits?
We track aggregate limits through the use of ShipCompliant.
8. What taxes do I have to pay?
OWS will bill the client for the exact amount that OWS has paid based on the reports filed and paid to all applicable states. This includes the sales/use taxes required by all states included in the OWS Direct program along with and the value based excise taxes paid in New Hampshire and Wyoming where the direct shipping excise taxes are based on product invoice amount.
All other excise taxes for the remaining states will be paid by OWS and are included in the OWS Direct fulfillment fee.
9. What are the applicable sales tax rates?
Sales tax rates vary greatly and can change continually. We highly recommend that you initiate and maintain your sales system sale/use tax rate table by referring directly to the respective state's website. There are also many sales/use tax websites that provide location level tax rates.
10. If I don't have the right state permits, do I have to use the OWS Direct service for Onsite Only State orders?
No, if a package is being shipped to an Onsite Only State, there are no permits required and the shipment will be billed as a regular fulfillment order.
11. If the order was an onsite order to a customer living in a Permit State do I need a permit?
Yes, a permit is required in most permit states because they do not allow onsite shipments without a permit. In our general definition the only "onsite states' are those which otherwise would not allow any shipments, but do not expressly forbid "onsite" purchases which are covered under Federal law. Therefore, you can ship under your own permit or use OWS Direct.
12. Can I maintain some permits and use OWS Direct to ship my orders to those states that I don't have permits for?
Yes, see the answers to questions 1 and 2.
13. Should I let all my permits expire?
The OWS position is that you should maintain and use your permit if it is cost beneficial. The decision is up to you. Again, as mentioned above if the concern of using your own permit is the compliance reporting please contact our Compliance Department to better understand the service they could provide in supporting your own permits. Also see questions 1 and 2 for more information.
14. Are all states addressed on your list and does it explain why I can't ship to them?
Yes, we now have all 50 states and the District of Columbia listed on our "OWS Direct Quick Guide". What may not be clear on this guide is the reasoning behind Prohibited States and why direct to consumer is prohibited even after the Federal onsite rules.
The Federal onsite provision was designed to accommodate travelers who were faced with restrictions on how much liquid they were allowed to carry onto planes. While this has opened up a few states to direct shipping, there are still several states to which no shipments are allowed. Shipping to these states is restricted for a number of reasons, including, but not limited to, the following:
- Neither FedEx nor UPS will/can carry packages into the state.
- The state does not allow importation of alcohol for personal use.
- The state has an overly cumbersome or restrictive system which effectively blocks wine shipments.
- Permits are not available/attainable
We continually monitor the status of the state direct shipping laws and will readily add or adjust the OWS Direct shipping capability as necessary to be compliant and support our clients.
15. Do I have to use the new "OWS Fulfillment Order Form"?
The short answer is no. You may propose for approval an alternative form or format. The requirement is that the alternative form includes all of the required information as identified on the "OWS Direct Service Agreement" and the "OWS Fulfillment Order Form". We created the new order form to ensure we have all of the necessary information required to accurately perform all state reporting.
16. If I request the OWS Direct service in error for an open state, will you let me know?
We will make every effort to review orders to ensure they are shipping under the correct and beneficial method. Due to the large volume of orders we process, we cannot guarantee that we will catch orders that are incorrectly marked.