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The Value of Being Compliant
April 23, 2016
“I Can’t Afford to Be Compliant”. This is something we hear all the time from small wineries across the country – but what is actually the cost of compliance? As you probably know, the taxes, fees and regulation vary state by state but your compliance agent should be able to provide a projection on costs based on your desired distribution and sales. With 44 states now licensed for direct-to-consumer, it is difficult to keep up-to-date on all the changes in regulations – but if you have a compliance agent who is knowledge, they should be able to guide you.
The question you really should ask yourself is “what does it cost to NOT be compliant and to sell and ship without proper licensing?” It only takes one incident of discovery to be a wake-up call – the fines and legal fees attached to illegal shipping can be astronomical. More and more carriers are working directly with states to crack down on illegal shipping, so it just becomes a matter of time until you are caught. Third-party shippers do not protect you from prosecution (no matter what anyone says), so the safe route is to evaluate your legal shipping options depending on your state and permit regulations and err on the side of the law.
Need an evaluation of your compliance status? Give us a call at 707-968-5003.