Alaska’s new Manufacturer Direct Shipment license goes into effect January 1, 2024. The AMCO plans to start accepting online applications later this month.

Even though the new license may be possible to obtain soon, new regulations governing the license impose a number of requirements that make the fulfillment of orders very difficult. The regulations as currently written require direct shipment licensees to do the following:

• Obtain and retain a copy of ID documents that show the photograph and signature of the purchaser and any other individual authorized to receive the shipment and deliver it to the purchaser;
• Determine whether the purchaser’s name is on the list of prohibited persons provided by AMCO to all package store and DTC licensees, and if so, reject the order;
• Ensure that the written or electronic order is signed and dated by the purchaser and refers by number to the purchaser’s ID document;
• If your company meets the sales threshold for sales tax nexus in Alaska (over 200 transactions or $100,000 in AK retail sales) and the delivery location imposes local sales tax, collect the tax prior to shipment;
• Determine if the purchaser lives in an area that has restricted the sale of alcoholic beverages by local option. A list of restricted zip codes is available on the AMCO website. Manufacturer Direct Shipment licensees may not legally ship to those locations.

In addition, Alaska law requires all holders of an AK Manufacturer Direct Shipment License to pay AK excise tax on all shipments. Before beginning to ship to AK customers, licensees will need to obtain an Excise Tax License, which requires a $25,000 tax bond for at least the first three years.

The Wine Institute has been in discussion with Alaska regulators, urging them to reduce the requirements, but the timing and exact nature of the revisions is still unknown. 

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