A Non-Resident Seller’s Permit is one of the most important permits for the alcoholic beverage business in Tennessee. It is required for any producer to sell its products to Tennessee wholesalers, who can then sell them onto retailers such as restaurants and retail package stores. Unless you are a Tennessee-licensed distillery or winery, the NRS permit is the critical permit to enter the three-tier system at the producer tier.
An NRS Permit from the Tennessee Alcoholic Beverage Commission is required of:
- Any manufacturer, distillery, winery, importer, broker, or person which sells or distributes alcoholic beverages to any Tennessee wholesaler or manufacturer;
- Businesses warehousing alcoholic beverages in the state for the purpose of sale to entities licensed in other states; and
- Businesses selling wines to Tennessee wholesalers which are not or cannot be registered with the Department of Revenue.
Under, NRS permittees may transact business in two ways. By:
- Soliciting and taking orders for alcoholic beverages from wholesalers; and
- Shipping alcoholic beverages for sales made to wholesalers.
For example, a new whiskey or wine brand must obtain a Non-Resident Seller Permit to sell its products to Tennessee wholesalers via the three-tier system.
Depending on your business model, you may also consider an additional permit in Tennessee: a Non-Manufacturer Non-Resident Seller Permit. It is required for any entity which holds the rights to marketing, licensing of trademarks or trade names, or contracting for the manufacture of any wine, liquor, or other alcoholic beverage. This permit allows you to contract with a licensed distillery or winery, to produce your product. If your goal is, for example, to start a ready-to-drink (RTD) brand by engaging a co-packing manufacturer to make and label your product, this is the permit for you. Depending on your business model, you may need a Federal Basic Permit from the TTB.
Our firm has extensive experience building and counseling alcoholic beverage brands for entry into Tennessee and the Southeast. We stand ready to assist with your next venture.
