WineLaw.ca
BC Reverses Bill C-311 Wine Shipping Law
- Thursday, 07 June 2012 13:55
- Written by Mark Hicken
The BC Government has just issued a new wine importation policy that reverses the progress of Bill C-311 since it prevents the inter-provincial shipment of wine direct to consumer (e.g. via e-commerce). Instead, the government has indicated that BC will follow Ontario's lead by introducing small personal exemptions that only apply to "in-person" importations of alcohol. The BC wine industry was looking for leadership from its government in implementing a policy that would allow wineries to ship directly to customers in other provinces. However, the BC government has dashed these hopes by implementing a policy which does not permit this, less than 24 hours after Bill C-311 was passed by unanimous vote at the federal level. Nevertheless, it is unclear whether the government means what it says in the press release. The responsible Minister was quoted by CKNW this afternoon as stating that wineries should be able to ship wine to customers in other provinces: "I think it's just another option for folks who are, let's say, in the Okanagan this summer, they go to a winery and, say, rather than having to drive the case of wine back to my jurisdiction, can you just send it to me? I have no problem with that." However, the press release issued by his Ministry this afternoon clearly states that "All provinces and territories that allow personal importation from other provinces restrict that importation to liquor that accompanies the person bringing it into the province". For wineries, the distinction is crucial. The point of Bill C-311 is to enable wineries to ship direct to consumers in other provinces and to expand their markets, not just to allow importation "on the person". Hopefully, this policy will be reversed quickly and the government will resume its full support of Bill C-311. In addition, the press release contains a number of factual errors:
- The press release appears to confuse "liquor board markups" and "provincial taxes". Liquor board markups are not taxes as they are not passed and approved by the Legislature. Any requirement to pay liquor board markups is not the same as a legal requirement to pay sales taxes.
- Many provinces have no laws dealing with inter-provincial importation of alcohol for personal use. Alberta's provincial laws specifically permit any amount for "personal consumption". The press release incorrectly states that all provinces restrict importation to "in-person" importation and that no jurisdiction allows for tax-free importations.
Update: Total confusion reigns as the press release says one thing and the Minister says that BC will permit shipment as opposed to "in-person" transport. See Latest Post on this Issue for More Information.
Wine Shipping Law Reform Passes Unanimously in House
- Thursday, 07 June 2012 09:42
- Written by Mark Hicken
Bill C-311 passed its third reading vote in the House of Commons last night with a resounding unanimous vote of 287 - 0. The Bill now heads to the Senate. Hopefully, it will be dealt with quickly in the Senate and become law before the summer. Fingers crossed on that one. However, as I have previously stated, it is important to remember that the amendment permits each province to impose limits on the personal use exemption that is created. The most obvious limit would be to define the amount of wine that is a reasonable amount for personal consumption. As a result, if real progress is to be achieved, it is essential that the provinces set realistic limits. As one of two leading wine producing provinces (and as the only one that is actively supporting this Bill), British Columbia is in a unique position to take leadership on this issue and to establish a precedent for the other provinces in advance. It is hoped that British Columbia will act soon on this matter.
Prohibition Legacy Ends in Washington State
- Saturday, 02 June 2012 13:12
- Written by Mark Hicken
On Friday June 1st, the legacy of prohibition ended in Washington state as that jurisdiction completely privatized its wholesale and liquor businesses, ending decades of "control" over the alcohol business. Washington's government, like most places in the world, will now become a regulator of the business rather than an active participant. The transformation takes place as a result of the successful Initiative I-1183, which was primarily sponsored by Costco in last November's election. Washington consumers can now purchase spirits in private stores (previously only beer and wine were available in the private sector). All state government liquor stores have now been closed permanently along with the state's wholesale distribution warehouse. The initiative also placed some new taxes on spirits in Washington which were designed to ensure that the state did not lose revenue after exiting the business (in fact, the transition was not designed to be revenue-neutral and taxes are predicted to increase state liquor revenue by about 50%). The new system is explained well in this post from Seattle's Wine World and Spirits: Washington Prohibition is Over. From early news reports, it appears that spirits pricing will vary greatly depending upon place of purchase (see Seattle Times Database for comparisons). Due to the new taxes, non-discounted prices will likely be higher than in state liquor stores (see: Buyer's Remorse Over End of State Stores as Liquor Prices Rise). However, as with all products sold in the private sector, consumers will likely be able to get better prices (some lower than in state liquor stores) if they buy products on sale or at a discount outlet such as Costco. Here are a couple of examples from the Seattle Times (The Day Liquor Went Private and Prices Stumped the Public): 1.75 L of vodka at Costco: $29 plus taxes = $41; 750 ml of Jack Daniels at Safeway: $18.99 plus taxes = $25.70. If it proves true that state liquor revenue will jump considerably then that would be good news for the state government. As a comparison, in British Columbia the minimum price for vodka for 1.75 L including taxes would be $55.41 and 750 ml of Jack Daniels sells for $31.99.
Canadian Wine Law Reform Back on Track
- Thursday, 31 May 2012 06:18
- Written by Mark Hicken
On Tuesday, there was a historic opportunity for the House of Commons to vote on and pass Bill C-311 which would amend the 80 year old law that prohibits the inter-provincial shipment of alcohol so as to allow the shipment of wine in certain circumstances (a personal use exemption). The passage of this Bill would provide great benefits to Canada's thriving wine industry and to Canadian wine consumers who have long suffered under a prohibition era rule which makes it illegal for them to order wine from another place within their own country. The Bill was thought to have all party support and the wine industry was excited that finally it would be rid of an archaic law which has no place in modern society. Unfortunately, the historic opportunity to fix this was delayed when a number of federal NDP MPs created a fillibuster and used up all of the time allotted for the Bill, thus preventing the vote (see story: BC wineries shackled by NDP MPs). Since the House will break for summer recess shortly, any further progress in the Bill could have been delayed until at least the Fall. Fortunately, Nova Scotia Liberal MP, Scott Brison, stepped in to save the day by providing more time for Bill C-311 next week on June 6th. The NDP has subsequently apologized for the fillibuster, claiming that it arose from a "communications error". Happily, it now appears that all-party support has been restored and that the Bill will pass next week and head to the Senate. The Globe provides coverage of the story here: Proposed Changes to Wine Law Back on Table in Ottawa and CBC also has this story: Canadian Wine May Flow More Freely if MPs Get Their Way.
Liberal Steps in to Help Free Our Grapes
- Wednesday, 30 May 2012 12:08
- Written by Mark Hicken
Good news despite yesterday's set backs (see: NDP Delays Wine Shipping Law Reform). Liberal MP, Scott Brison, has saved the day by stepping in and providing more time for Bill C-311 next week. Hopefully, the Bill will now pass before summer recess. Thank you, Scott Brison.