

Alcohol
Federal & State Alcohol Permitting
Operating in the alcohol industry requires a federal permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB) to manufacture, import, or distribute alcohol beverages and requires State and local licenses to distribute alcohol. The permitting process, governed by 27 CFR Parts 19, 24, and 25, is intricate, requiring detailed applications and compliance with facility and operational standards. Our attorneys guide clients in selecting the appropriate permit type—such as a Distilled Spirits Plant (DSP), winery, or brewery permit—and prepare TTB Forms (e.g., Form 5100.31 for DSPs) to meet stringent requirements. We also guide our clients through the State and local alcohol licensing process.
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We provide comprehensive support for initial applications, renewals, amendments for facility expansions, or ownership changes, ensuring alignment with TTB’s enforcement priorities. Our expertise minimizes delays and reduces risks of permit denials or violations, enabling seamless business operations.
Alcohol Regulatory Compliance
The alcohol industry is heavily regulated under the Federal Alcohol Administration Act (FAA Act) and TTB regulations, with requirements spanning production, labeling, advertising, and distribution. Our firm designs tailored compliance programs to address these obligations, including obtaining requisite formula approvals, Certificate of Label Approval (COLA) submissions approvals, and trade practice rules. We develop internal policies, train staff, and ensure accurate recordkeeping for production, inventory, and tax purposes. Our proactive approach identifies compliance gaps before TTB inspections, protecting your permit and reputation. As ongoing counsel, we review operational changes, such as new product launches or distribution agreements, to maintain compliance with federal and state laws.
TTB Audits & Inspections
TTB conducts regular inspections to verify compliance with production, recordkeeping, and tax requirements. Our team, leveraging insights from former investigators, conducts mock audits to prepare clients for scrutiny. We review production reports, inventory logs, and tax records to address vulnerabilities before inspections.
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If violations are cited, we craft corrective action plans, negotiate with TTB, and defend against permit revocation or penalties. From administrative hearings to federal court, we prioritize keeping your business operational with minimal disruption.
Alcohol Product Classification & Approvals
Introducing new alcohol beverages or modifying existing ones requires TTB approvals, such as formula submissions for distilled spirits or wine and Certificates of Label Approval (COLAs) under 27 CFR Part 4, 5, or 7. We assist clients in preparing submissions, analyzing formulations, and ensuring compliance with labeling and advertising standards, including health warnings and ingredient disclosures.
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Our services also cover navigating TTB’s sensory evaluation requirements and resolving classification disputes. By addressing regulatory hurdles early, we help manufacturers and importers bring products to market efficiently and compliantly.
Federal Alcohol
Excise Tax Compliance
Alcohol beverages are subject to federal excise taxes enforced by TTB, with rates varying by product type (e.g., $13.50 per proof gallon for distilled spirits, $1.07–$3.40 per wine gallon for wine, and $7–$18 per barrel for beer). Miscalculations or failure to file TTB Form 5000.24 can lead to significant penalties. We advise on tax determination, exemptions (e.g., small producer credits), and structuring transactions to minimize liability.
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In disputes, we represent clients in TTB and IRS audits, challenging assessments and negotiating resolutions. Our expertise in tax law and alcohol regulations ensures accurate compliance and robust defense against enforcement actions.
Trade Practices & Tied-House Compliance
The FAA Act (27 U.S.C. § 205) prohibits unfair trade practices, such as exclusive outlet arrangements, tied-house violations, and commercial bribery. We guide clients in structuring distribution agreements, promotional activities, and sponsorships to comply with TTB’s trade practice rules. Our services include reviewing contracts and marketing plans to prevent violations that could trigger fines or permit suspension.
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For alleged violations, we represent clients in TTB investigations, negotiate settlements, and provide defense in administrative or federal proceedings, protecting your business from costly penalties.
Import/Export Compliance
The import and export of alcohol beverages are governed by TTB regulations and U.S. Customs Service rules, requiring permits (e.g., TTB Form 5100.18 for importers) and compliance with international trade laws. We assist clients in securing import permits, navigating COLA requirements for foreign products, and ensuring compliance with customs duties and labeling standards.
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For exports, we guide clients through TTB’s export certificate process and tax drawback claims. Our services include recordkeeping guidance and voluntary disclosures for potential violations, enabling compliant global operations.