Date of Adoption: April 14, 1999.

Purpose: Chapter 314-68 WAC outlines the guidelines for persons to bring alcoholic beverages into the state for personal or household use, either from another state or from outside the United States.

Citation of Existing Rules Affected by this Order: Amending WAC 314-68-010, 314-68-020, 314-68-030, 314-68-040, and 314-68-050.

Statutory Authority for Adoption: RCW 66.08.030, 66.12.120.

Adopted under notice filed as WSR 99-05-014 on February 5, 1999.

Changes Other than Editing from Proposed to Adopted Version: In WAC 314-68-020(2), the definition of "personal or household use" was changed from "The alcoholic beverages are to be consumed by the private individual or the person's family or guests, in the individual's private residence" to "The alcoholic beverages are to be consumed by the private individual or the person's family or guests, or gifted to another private individual or a nonprofit organization that is not licensed by the board."

In WAC 314-68-030, the matrix contains a column on how much alcohol may be brought into the state beyond the amount exempted from payment of tax and markup. The proposed rules were published stating "A reasonable amount" above the exempted limit may be brought into the state upon payment of tax and markup. The adopted language states "An amount..."

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 2, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 4, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 4, Repealed 0. Effective Date of Rule: Thirty-one days after filing.

April 29, 1999

Eugene Prince

Chairman

OTS-2816.2

AMENDATORY SECTION(Amending Order 60, filed 11/1/77)

WAC 314-68-010
Purpose.

The purpose of this chapter is to ((comply with and implement provisions of RCW 66.12.110 and 66.12.120 and to regulate the importation of)) outline the regulations for a person to bring alcoholic beverages into the state ((from outside the United States, or from another state within the United States,)) for personal or household use, either from another state or from outside the United States, per RCW 66.12.110 and 66.12.120.

[Order 60, § 314-68-010, filed 11/1/77; Order 40, § 314-68-010, Rule 134, filed 8/21/75.]

((In this title, unless the context provides otherwise, the following definitions shall apply:))

(1) "Alcoholic beverages" means liquor as defined in RCW 66.04.010(16).

(2) (("Unlicensed individual" means a person, 21 years of age or older, bringing alcoholic beverages into the state from outside the United States, or from another state within the United States, for personal or household use.

(3) "Personal or household use" means that the alcoholic beverages are to consumed by the unlicensed individual, in his residence, or by his family and/or guests, in his residence, at no charge to the family and/or guests.  Personal or household use also means that such alcoholic beverages may not be sold or resold.)) "Private individual" means a person bringing alcoholic beverages into the state from another state or from outside the United States for personal or household use.

(3) "Personal or household use" means:

(a) The alcoholic beverages are to be consumed by the private individual or the person's family or guests, or gifted to another private individual or a nonprofit organization that is not licensed by the board; and

(b) The alcoholic beverages may not be sold or resold.

(4) "Equivalent markup and tax" means the average state markup and tax that would ((be applicable)) apply to the purchase of the same or similar alcoholic beverages at retail from a state liquor store.

(5) "Bringing alcoholic beverages into the state" means personally carrying alcoholic beverages purchased outside the state into the state of Washington.

Persons who purchase alcohol for personal or household use from auction sellers may have their purchases shipped to them in the state of Washington, provided they obtain advance authorization from the board and arrange to pay the equivalent markup and tax (see WAC 314-68-040 or 314-68-050 for procedures).

[Order 60, § 314-68-020, filed 11/1/77; Order 40, § 314-68-020, Rule 135, filed 8/21/75.]

((The amount of alcoholic beverages which an unlicensed individual may bring into the state shall be governed by the following:

(1) Such quantities as have been declared and permitted to enter the United States duty free under federal law may be allowed to enter the state from without the United States, free of tax and markup, for personal or household use.

(2) Such quantity in excess of that permitted in WAC 314-68-030(1) may be allowed to enter the state from without the United States, for personal or household use, upon payment of the equivalent markup and tax.

(3) The board may authorize a reasonable amount of alcoholic beverages to be brought into the state from another state for personal and household use, upon payment of the equivalent markup and tax.))

	Do Not Have to Pay Tax and Markup	Must Pay Tax and Markup
Bringing from inside the U.S.	2 liters of spirits or wine or 288 ounces of beer, no more than once per calendar month.	An amount above 2 liters of spirits or wine or 288 ounces of beer during one calendar month.
Bringing from outside the U.S.	The amount that has been declared and permitted to enter the United States duty free under federal law.	An amount in excess of that permitted by federal law.

Individuals moving into the state or receiving alcoholic beverages through inheritance or estate settlements will be allowed a one-time exemption from payment of tax and markup.

[Order 40, § 314-68-030, Rule 136, filed 8/21/75.]

((Procedures for an unlicensed individual to bring alcoholic beverages in excess of the quantity permitted in WAC 314-68-030(1) into the state from outside the United States for personal or household use are as follows:

(1) The United States Customs Service shall be requested to require each such individual to complete a declaration form prescribed by the board, and to present such form to the United States customs inspector who will review the form for completeness; compute state taxes and markup from a chart supplied by the board; sign the form; provide duplicate copies of the completed form to the unlicensed individual; mail a copy of the form to the board, and retain a copy for the United States Customs Service.

(2) The unlicensed individual who has signed the declaration form shall mail a copy of the form with payment of the total state taxes and markup to the Washington State Liquor Control Board, Purchasing Division, Olympia, Washington, within ten calendar days from the date of signing the declaration form, and said individual shall act as custodian for the alcoholic beverages until a release is received from the board.

(3) Upon receipt of total state taxes and markup due, the board shall mail a receipt/release to the unlicensed individual signing such declaration, authorizing use of the alcoholic beverages, for which the total state taxes and markup due has been paid, for personal or household use, but not for sale or resale.)) Fill out a board declaration form, which is available from the United States Custom Service.

(1) Compute the state taxes and markup using the chart on the form.

(2) Sign the form.

(3) Keep a copy for your records and give a copy to the United States Customs Service.

(4) Send a copy of the form with payment within ten days to the Washington State Liquor Control Board, Purchasing Division, Olympia, Washington.

(5) The board will mail a receipt to the individual who signed the form, authorizing use of the alcoholic beverages for personal or household use.

[Order 60, § 314-68-040, filed 11/1/77; Order 40, § 314-68-040, Rule 137, filed 8/21/75.]

((Procedures for an unlicensed individual to bring alcoholic beverages into the state from another state for personal or household use are as follows:

(1) Prior authorization must be obtained from the board before alcoholic beverages may be brought into the state from another state for personal or household use.  Any unlicensed individual who fails to obtain prior authorization will be subject to provisions of RCW 66.44.160.

(2) An unlicensed individual may apply for such authorization to the Washington State Liquor Control Board, Attention Liquor Purchasing Agent, 1025 East Union Avenue, Olympia, Washington 98504.  The application must include a list of the items to be brought into the state.

(3) The liquor purchasing agent will compute the equivalent markup and tax, and issue said authorization upon payment by the unlicensed individual of the applicable equivalent markup and tax.

(4) The authorization will list the alcoholic beverage items to which it applies, and the markup and taxes the unlicensed individual paid thereon.

(5) The authorization must be in possession of the unlicensed individual when such alcoholic beverages are brought into the state.)) (1) You must obtain prior authorization from the board before bringing alcoholic beverages into the state from another state for personal or household use. Any private individual who fails to obtain prior authorization will be subject to the provisions of RCW 66.44.160, "Illegal possession, transportation of alcoholic beverages."

(2) To obtain approval if you know the quantity of alcoholic beverages you will bring into the state:

(a) Mail a list of the items to be brought into the state to the Washington State Liquor Control Board, Purchasing Division, Olympia, Washington.

(b) The liquor purchasing agent will compute the tax and markup.

(c) The board will mail an authorization once the payment of the applicable equivalent markup and tax is paid.

(3) To obtain approval if you do not know the quantity of alcoholic beverages you will bring into the state:

(a) Mail a certification that markup and tax will be paid to the Washington State Liquor Control Board, Purchasing Division, Olympia, Washington.

(b) The liquor purchasing agent will review the certification to pay equivalent markup and tax and mail an authorization to bring the alcoholic beverages into the state along with a declaration form.

(c) Once you have brought the alcoholic beverages into the state:

(i) Fill out the declaration form.

(ii) Compute the state taxes and markup using the chart on the form.

(iii) Sign the form.

(iv) Keep a copy for your records.

(v) Mail a copy of the form with payment within ten days to the Washington State Liquor Control Board, Purchasing Division, Olympia, Washington.

[Order 40, § 314-68-050, Rule 138, filed 8/21/75.]

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