Wholesale alcohol and beer and wine manufacturers

They are Rules 4.4.3 to 4.4.8 of Chapter 4.4 of Joint Regulation No. 9473: the wholesale wine, beer and alcoholic beverage trafficker licences; the licence to trade wholesale from a vehicle; the beer manufacturer and wine manufacturer licences; and the oversight rule that closes them. The retail licences — categories A, B and C, and the limited-time ones — are in our companion guide.

The wholesale wine, beer or alcoholic beverage licence is needed by anyone selling that product to a trafficker, whether or not they keep stock at the sites where they trade or in connection with such a sale. The from-a-vehicle licence is needed by wholesale traffickers of alcoholic beverages, wines or beers operating from motor vehicles, and one is needed for each vehicle used. And the manufacturer licence is needed by anyone who, without being a distiller or rectifier, makes wines or beers, as applicable.

• Completing the corresponding application and meeting the requirements set in Rule 4.1.4, both to obtain and to renew each licence.Verified against the official source
• For the wholesale wine, beer and alcoholic beverage licences: obtaining the Federal Basic Permit from the "Alcohol and Tabacco Tax and Trade Bureau".Verified against the official source
• Displaying the licence in a visible place of the establishment; and, for the from-a-vehicle licence, in a visible place of the vehicle.Verified against the official source
• To trade from a vehicle: obtaining a licence for each vehicle used, stating the vehicle’s make and model and the name of the person to whom the vehicle’s licence was issued, and holding a Wholesale Alcoholic Beverage, Wine or Beer Trafficker Licence.Verified against the official source
• For manufacturers: meeting the additional requirements after the Permiso Único, but before beginning operations.Verified against the official source

• Federal Basic Permit from the "Alcohol and Tabacco Tax and Trade Bureau".
• For manufacturers: evidence of registration in the Registry of Distillers, Manufacturers or Rectifiers.
• For manufacturers: a sketch of the piping — the tank connections — if applicable.
• For manufacturers: evidence of having filed with the Treasury Department the bond required in favour of the Government of Puerto Rico.
• For manufacturers, before starting production and with Treasury: the formula of the product to be made and approval of the federal or state label or marbete.
• For the from-a-vehicle licence: the vehicle’s make and model and the name of the person to whom the vehicle’s licence was issued.

1. 1

   Step 1: Who is a wholesale trafficker

   The definition repeats identically for the three products: anyone selling wines — or beers, or alcoholic beverages — to a trafficker, whether or not they keep stock at the sites where they trade or in connection with such a sale, must obtain the corresponding wholesale trafficker licence. Note the phrase "whether or not they keep stock": you do not need your own warehouse to be a wholesale trafficker for these purposes. And in all three cases the licence is displayed in a visible place of the establishment.

2. 2

   Step 2: The licence that covers the other two

   It is a saving worth knowing before taking out three licences: the holder of a Wholesale Alcoholic Beverage Trafficker Licence may also trade wines and beers. That is, whoever holds the alcoholic beverage one does not additionally need the wine or beer licences to trade them.

3. 3

   Step 3: The Federal Basic Permit

   The three wholesale licences share an identical additional requirement: they must obtain the Federal Basic Permit from the "Alcohol and Tabacco Tax and Trade Bureau" — we reproduce the regulation’s spelling. It is not a paper OGPe issues: it is federal, and the regulation demands it as a condition of the local licence. Beer and wine manufacturers need it too.

4. 4

   Step 4: One licence per vehicle

   Wholesale traffickers of alcoholic beverages, wines or beers operating from motor vehicles must obtain a Wholesale Alcoholic Beverage, Wine or Beer Trafficker From a Vehicle Licence for each vehicle used. And each one’s licence is displayed in a visible place of the vehicle, not of the office. There are two additional requirements: stating the vehicle’s make and model and the name of the person to whom the vehicle’s licence was issued; and holding a Wholesale Alcoholic Beverage, Wine or Beer Trafficker Licence. That is, the vehicle licence rides on top of the wholesale licence; it does not replace it.

5. 5

   Step 5: Making beer or wine

   The rule defines the manufacturer by exclusion: anyone who, without being a distiller or rectifier, makes wines or beers must obtain a Beer Manufacturer Licence or a Wine Manufacturer Licence, as applicable, and display it in a visible place of the establishment. The chapter creates no distiller or rectifier licence, and we are not going to invent where those are regulated.

6. 6

   Step 6: The manufacturer’s four papers, and when

   The regulation fixes a concrete moment here worth marking on the calendar: the additional requirements are met after the Permiso Único, but before beginning operations. There are four. Obtaining the Federal Basic Permit from the "Alcohol and Tabacco Tax and Trade Bureau". Evidence of registration in the Registry of Distillers, Manufacturers or Rectifiers. A sketch of the piping — the tank connections — if applicable. And evidence of having filed with Treasury the bond required in favour of the Government of Puerto Rico. We publish no amount for that bond because this chapter fixes none.

7. 7

   Step 7: Formula and label before producing

   And there is a second moment, later still. Before starting production of the beers or wines, the manufacturer must file two things with Treasury: the formula of the product to be made and approval of the label or marbete, federal or state. They are two distinct milestones: the four earlier papers come before beginning operations; the formula and the label, before starting production.

8. 8

   Step 8: Treasury reserves the right to revoke

   Holding one of these licences within a Permiso Único does not exempt anyone from the Joint Regulation itself, the Puerto Rico Internal Revenue Code of 2011 as amended, the regulations adopted under it, or any other applicable Treasury rule. Treasury has the power to audit at any time, carry out periodic inspections, fine and order the stoppage or closure of the operation under the Internal Revenue Code for a New Puerto Rico as amended and its regulations; and the regulation adds a sentence worth reading slowly: consistent with the result of the above, Treasury reserves the right to revoke licences under its oversight duty. Treasury is also responsible for compliance inspections relating to excise, taxes and any other tax aspect, and its Secretary may examine at any time the books, files, reports and other documents relating to the commercial activity or article subject to these licences, and proceed at law according to what is found there.

Within the Permiso Único, through the SUI, before OGPe, a hierarchy I-III autonomous municipality or an Authorised Professional, because the regulation lists these licences among those filed and evaluated exclusively that way. The Federal Basic Permit is obtained from the Alcohol and Tobacco Tax and Trade Bureau, which is federal. Registration in the Registry of Distillers, Manufacturers or Rectifiers, the bond in favour of the Government, the product formula and the label or marbete approval are filed with the Treasury Department, which is also the body that polices these licences and reserves the right to revoke them.

• Taking out three wholesale licences when the alcoholic beverage one already permits trading wines and beers.
• Operating from several trucks on a single vehicle licence.
• Displaying the vehicle licence in the office rather than in a visible place of the vehicle.
• Applying for the vehicle licence without first holding the wholesale trafficker licence.
• Starting to operate as a manufacturer without the Federal Basic Permit or the Registry entry.
• Beginning production without having filed with Treasury the product formula and the label or marbete approval.
• Confusing the two moments: the four requirements come before operating; the formula and label, before producing.
• Assuming the licence protects you from Treasury, which reserves the right to revoke it.

These are the government pages this guide is based on.

• Oficina de Gerencia de Permisos (OGPe)

  OGPe

  docs.pr.gov

• Permit Management Office

  ogpe

  ogpe.pr.gov