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  • Shipping Laws on Wine within Canada
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Shipping Laws on Wine within Canada

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Written by Mark Hicken Mark Hicken
Category: Shipping, Border, Import, Export Laws Shipping, Border, Import, Export Laws
Published: 09 August 2004 09 August 2004

This article provides a summary of the shipping laws regarding wine (and other liquor) within Canada. This article is updated frequently. However, the laws in this area are changing rapidly so please contact me (or your own lawyer) in order to ensure that you have the latest information. If you are interested in wine shipping issues related to bringing wine from a foreign country to Canada, please see this article: Bringing Wine to Canada After a Trip.

The shipping of any alcohol from one province into another province was previously prohibited by a federal law (which stems from the prohibition era) called the Importation of Intoxicating Liquors Act (Canada). However, on June 28, 2012 that law was amended by Bill C-311. While the general prohibition remains in place, the Bill created a national personal use exemption for wine subject to applicable provincial laws. In June 2014, the federal government also amended the law to extend the personal use exemption to include the interprovincial shipment of beer and spirits. That amendment was effective June 19, 2014. However, the various provinces have not embraced the spirit of these changes and have created various barriers to interprovincial "direct to consumer" shipments.

The following chart summarizes my views on the ability of consumers to receive "direct to consumer" interprovincial shipments of wine under the laws in the various provinces. See the FreeMyGrapes site for more detailed analysis and other interpretations of the law.

  DTC from Winery?   DTC from Retailer?   Quantity Limits  ... Comments
BRITISH COLUMBIA          
 green light     Yes No Amount for personal consumption if 100% Cdn wine from winery. 

  OK for Canadian wine purchased from a winery. Imported wine has different rules: subject to 9 liter cumulative quantity limit and only for "in-person" importation (no shipment).

ALBERTA          
 yellow light Unclear Unclear Amount for personal consumption.

  Alberta law says that adults may "import" liquor from other provinces (and other countries) in amounts determined by regulation. It is my view that the only reasonable interpretation of the word "import" as used in these laws (see s.86 of the Gaming & Liquor Act and s.89 of the Gaming & Liquor Regulation) includes both in person transport and direct shipment. However, Alberta has recently amended the regulation (s.89), to make importation from other provinces "subject to the policies of the Board" which appear to be set out here and which restrict importation to amounts that are personally transported (i.e. not shipped). It is now likely a complicated legal issue as to whether the Board can, in fact, effectively reverse the language in the Act and Regulation through a "policy statement". 
SASKATCHEWAN          
 yellow light Yes (from BC only) No 9 liters.

  Saskatchewan is open for DTC shipments of wine and spirits from BC only (not other provinces). An authorization (for the customer) is required from the SLGA which is valid for one year. Maximum quantity per shipment is 9 litres (one case) but multiple shipments are allowed. The customer is required to submit markup to the SLGA upon receipt of the shipment. The markup for wine is $5.25 per 750 ml bottle. See details here: Direct Shipment to Saskatchewan.

MANITOBA          
 green light Yes Yes Amount for personal consumption.

  Thanks Manitoba!
ONTARIO          
 yellow light Yes Yes Amount for personal consumption.

  Ontario's laws are silent on the issue of interprovincial importation of alcohol. Generally, in law, "that which is not prohibited is permitted" so it should be ok to import wine for personal consumption as allowed by the federal law. However, the LCBO has issued a "policy statement" that disagrees with this and says that only "in person transport" is allowed. It is my view that this "policy statement" has no basis in law in Ontario. See FreeMyGrapes analysis for details.

QUEBEC          
 red light No No 9 liters

  Provincial law restricts transport of wine not purchased from liquor board within Quebec. Regulations have been issued which allow the importation of alcohol from other provinces but they only permit 9 liters of wine per person and only if it has been personally transported (no direct to consumer shipment).

PEI          
 green light Yes Yes 9 liters.

  It is my view that the only reasonable interpretation of the word "import" in the amended legislation includes both in person transport and direct shipment. The PEI liquor board is stating that it is not open for shipment, only for "in-person transport". In my view, this is not a reasonable interpretation of PEI law.

NEW BRUNSWICK          
 green light Yes Yes  Amount for personal consumption.

  On 2016-04-29, a NB provincial court judge found that NB laws restricting the import of alcohol from other provinces are unconstitutional. This decision was appealed to the NBCA but leave was refused (i.e. the court refused to hear the appeal, meaning that the trial level decision stands). The case is currently in the process of an appeal to the Supreme Court of Canada.

NOVA SCOTIA          
 green light Yes No     OK for Canadian wine purchased from a winery. Nova Scotia announced it is open for DTC wine shipments on June 25, 2015.

NEWFOUNDLAND          
 red light No No 1.14 liters.

  Unreasonably low quantity limit. Use of word "bringing" may exclude shipment. Note that the NL liquor board charged FedEx with shipping BC wine from a winery to a customer in Newfoundland. The case did not proceed after the defence lawyer made an argument that NL laws could not reach a federally regulated courier such as FedEx.

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BC LCLB Warns on Internet Marketing

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Written by Mark Hicken Mark Hicken
Category: Retail and Distribution Laws Retail and Distribution Laws
Published: 05 December 2011 05 December 2011

Wineries and other licensees should be aware that the BC LCLB issued a statement on internet marketing in the October 2011 issue of their “Liquor Line” newsletter which is available on the LCLB website here. The statement warns licensees that the sale or advertising of any liquor product without a license is not legal in BC. It then continues by saying “[t]herefore companies like Groupon or ethicalDeal.com cannot legally include liquor as part of a promotion. Given this, it is not permitted for licensees to enter into and offer these sorts of promotions. (emphasis added)” This wording could be interpreted as prohibiting many third-party marketing companies from including liquor as part of their marketing services or promotions when they are working with a licensee such as a winery or retailer.

The question then arises: is it legal for third party marketing companies to work with licensees at all and, if so, what can they do? It is my view that it is legal for third party marketing companies to work with licensees so long as all parties pay careful attention to structuring their relationships correctly.  The issues are basically the same as those faced by the California ABC which recently issued a detailed advisory on these issues (Third Party Providers - PDF) which was created after extensive industry consultation and legal advice. It’s my opinion that the analysis in the California advisory is well done and should also be applicable to British Columbia.

I have confirmed with the BC LCLB that their statement was based on an analysis of the ‘default’ method of Groupon promotion under which the marketing company processes and is an integral part of the sale. However, there are, in fact, many other methods of structuring internet promotions (some of which may be legal and some of which may not) and the LCLB has also confirmed that “each case must be considered on its own merits”. However, the LCLB has not confirmed that they will follow the same principles as have been established in California and there may well now be confusion within the BC industry as to what is permissible and what is not (as there was in California prior to the ABC issuing its ruling). In the interim, licensees should be cautious about internet marking and should obtain legal advice if they are entering into these types of marketing arrangements.

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Okanagan Water Law for Wineries

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Written by Mark Hicken Mark Hicken
Category: Environmental Laws Environmental Laws
Published: 19 November 2008 19 November 2008

It's already a major issue for wineries in California. I know that faculty at UC Davis are now considering water needs and ability to survive drought as an important factor when selecting rootstocks for new vineyard plantings. Here in water-abundant Canada, this has historically not been a major concern. But an article in Wine Business Monthly Online shines a light on similar Canadian concerns in its review of the Okanagan Sustainable Water Strategy and the implications for wineries in the region. The article points out that winery use of water is a tiny percentage of overall usage and that conversion to drip irrigation is making industry use of the resource even more efficient.

The legal implications of water usage are still generally a backburner issue. However, occasionally, as the article points out, the Province can use its powers under environmental laws to cut off water supplies to users as happened for some Okanagan wineries in 2003 during a drought. In addition, water concerns can block development, whether residential or otherwise (including wineries), if the development threatens to change water usage or conservation patterns.

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CA Winery Settles Host Liability Case for $3 Million

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Written by Mark Hicken Mark Hicken
Category: Liability Issues Liability Issues
Published: 11 December 2009 11 December 2009

I spoke about the issues surrounding "host liability" for wineries at the recent wine law conference that was held in November here in Vancouver. Those of you that were there will have heard my warnings regarding a winery's potential legal liability if an individual who has been served alcohol at the winery is in an accident later that injures either himself or another person.

While I am unaware of any B.C. wineries being in this situation recently, a news story from California illustrates the expensive consequences of a failure to live up to the applicable legal standards. In this case, the Sonoma County winery had hosted a wedding event and served numerous beers to a guest who was, in fact, under age. That guest ended up in a car accident later in the night in which his passenger was seriously injured. The passenger sued the winery, 7-Eleven (who later had sold some additional alcohol to the pair), and the driver. The eventual settlement ended up with the winery shouldering the bulk of the costs.

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Host Liability Issues for the Wine Industry

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Written by Mark Hicken Mark Hicken
Category: Liability Issues Liability Issues
Published: 12 December 2008 12 December 2008

The holiday season is upon us. While most of the season generally revolves around a spirited (pardon the pun) and responsible celebration involving wine and other liquor, the issue of legal liability for alcohol service always crops up at this time of year as businesses of all kinds become aware that good times can turn into a problem if someone ends up injuring themselves or others following a seasonal party at which they have consumed alcohol.

I have received a number of inquiries about this issue in the past few weeks so here is a quick (non-comprehensive) summary of the applicable law as well as a few ideas for limiting your liability.

There is one set of rules that I will call "commercial host liability" for restaurants, bars etc... most situations where a business is making money serving drinks. This would definitely include wineries or agencies in situations where they are either charging for wine, running a tasting room/event, or selling or promoting wine as an adjunct to an event. On the commercial host side, the rules are pretty strict in that the business has a fairly high duty of care toward a patron who has had too much to drink and they can be found liable if they don't do enough to prevent that person from injuring either themselves or someone else. All wineries and agencies should have staff trained to recognize liability and alcohol service issues for these types of events. You can read more on commercial host liability in the Supreme Court of Canada decision of Stewart v. Pettie (2005) which is the leading decision in this area.

On the other side, there are a set of rules for "social host liability" which basically apply to private parties. A more recent (2006) Supreme Court of Canada decision, Childs v. Desmoreaux, has found that, for the most part, social hosts do not have a duty of care to their guests and those guests are responsible for their own behaviour. If you are interested, you can read about this decision in this article or here.

 

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This site provides general information on legal issues related to the wine industry in Canada, particularly in BC.

It covers such topics as shipping laws, marketing laws, labeling laws, environmental laws and licensing.

The information presented here comprises solely the views of the author personally.

Please note that this site is intended to provide general information only. If you require specific or personal legal advice, please contact a lawyer.