Shipping of Japanese whisky to the USA?

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  • Cyath
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    Joined: 20.06.2016Posts: 5Ratings: 0

    Hi all, I'e recently been exploring some business opportunities with a friend of mine and we are thinking of shipping Japanese whisky to the USA since we may have some sources in Japan.

    As far as my information goes, stores in the USA can only buy from official distributors? I'm unsure at the moment how online whisky stores are able to send buyers any product (unless they of course are all official distributors as well)

    Would anyone happen to know more about this topic?

    Tai An Zhou
  • horst_s_2 Administrator horst_s_2 Joined: 01.07.2014Posts: 507Ratings: 661
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    The alcohol market in the US is highly regulated. This is left over from Prohibition. You are not allowed to ship alcoholic beverages in the US. There are a few exceptions regarding wine producers. But from my knowledge only half of the states have joined this shipment pool. The shippers have to register their cross country shipments and the alcohol tax is matched in the pool.

    Shipment from the outside needs an official license. And I think this one is much more expensive due to red tape work that your small profit. You have to be big to get advantages out of the system.

    Kind regards, Horst Luening, Master Taster, Whisky.com
  • NotMyJob Member Joined: 15.06.2016Posts: 6Ratings: 0
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    If your buddy can get the whisky at better price points than you are able to here, might as well have him send over what you can.

    I'm not sure how large scale you were thinking, though.

  • Cyath
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    Joined: 20.06.2016Posts: 5Ratings: 0
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    We are thinking small scale at the moment. The main issue seems to be the red tape that needs to be waded through. I'm not sure whether or not we would be able to send some over just as gifts? Our idea was mainly actually to supply the suppliers - i.e liquor stores, but when I asked a few they all told me that they already purchased from existing distributors.

    Tai An Zhou
  • NotMyJob Member Joined: 15.06.2016Posts: 6Ratings: 0
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    Yeah, most liquor stores will have long-standing relationships with the distributors they work with. Being as regulated as it is, there is probably a bunch of licenses and fees you'd have to acquire and pay before you'd be able to do this legally.

    As for Japanese whisky, the liquor store down the street from works directly with the Suntory rep for most of his Japanese stock. You'd probably have to be able to beat him price-wise pretty substantially to be able to secure any type of long term agreement.

    What Japanese whiskys would you be importing, if you don't mind me asking? A friend of mine just recently came back from a month in Japan with a bunch (Yama12, Hibiki17, MiyagikyoNAS, Hakushu12). They were great whiskys.

  • JollyPeatman Member Joined: 21.06.2016Posts: 4CollectionJollyPeatmans CollectionRatings: 3
    , edited June 21 2016 at 9:04PM
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    As they have said previously, in the US, there are strict import laws partially left over from prohibition but more so to protect the domestic market. Therefore, if you were to import alcohol you would have to apply for (hard to obtain) permits (which include a basic federal permit, COLA permit, TTB import permit and various certificates) as well as take a hefty import tax, which will significantly cut into your profits unless your friend can really supply you cheaply enough for you to make a profit.

    Another avenue to pursue is to import them in very small quantities through customs as personal usage rather than commercial purposes which will bypass those previous disdavantages but this route means that you will have a limitted supply and it will be hard to expand/adjust your stock. However, this allows you to test out your venture with minimal risk

    Hope something was helpful :biggrin:

  • bkdc Member Joined: 31.05.2016Posts: 6Ratings: 0
    , edited June 22 2016 at 5:08AM
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    The liquor laws in the USA are almost insane. But because each state has its own financial interests in making sure they get tax revenue from liquor sold in their state and many states restrict the importation of liquor from another state, it's difficult to set up any sort of inter-state internet shop.

    I'm still waiting for the whisky bubble to pop.... and for the Masaan fever in Japan to die down. Until then, I will be drink sparingly frm my Yamazaki 18, Hakushu 18, Hibiki 21, and Hibiki 17 bottles. Yamazaki 12 and Hakushu 12 are plentiful around here.

  • Cyath
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    Joined: 20.06.2016Posts: 5Ratings: 0
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    Thanks to everyone for your excellent and informative posts! They have definitely shed a lot of light on the issue.

    I have a contact in Japan who would be willing and able to buy any amount of whisky needed for personal consumption, and potentially more if the conditions were right. I do speak Japanese, which gives me a leg up on talking to any potential distributors.

    The idea of bringing in small quantities for personal consumption is probably a good one to start with. No use in taking unnecessary risks!

    Apparently most Internet-based large-scale distributors use some form of logistics company or USA contact to process their orders, thereby bypassing the licensing issue. It doesn't look like a friendly market for small-scale businesses, that's for sure.

    Tai An Zhou
  • Cyath
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    Joined: 20.06.2016Posts: 5Ratings: 0
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    Messages an online delivery company and got this reply :

    "All of our orders are send from our warehouse in Northwest London by a local courier and then handed to FedEx for domestic delivery."

    I'm kind of confused at how they are bypassing the need for a local distributor?

    Tai An Zhou
  • JollyPeatman Member Joined: 21.06.2016Posts: 4CollectionJollyPeatmans CollectionRatings: 3
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    Firstly, import/export laws are fairly different between the UK and US (as you can import alcohol into excise warehouse or to your licensed shops if you are a registered distributor, so I think you won't technically need a local 'distributor' but I'm not sure on the exact laws even when I'm from the UK), and especially EU based distributors have much better freedom of movement (as all you need is a registered consignee and a registered excise warehouse)

    Secondly, many online shops (especially in the UK) often has 1 store located somewhere in the country but with the bulk of trading done online and stock stored in a central warehouse which might be the case here but without knowing the exact store you're referring to, I can't say for sure.

    If you want to have a longer chat, feel free to pm me :biggrin:

  • NotMyJob Member Joined: 15.06.2016Posts: 6Ratings: 0
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    Another thing to note: does your friend in Japan have contacts with which to buy these whiskys? It can be just as difficult to find the higher sought after ones there as it is here.

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