Managing tax-paid stock

When you receive your 02 bond from the TTB, you have a concurrent “DUP02” bond which covers your tasting room, if it is part of the winery bonded area.

If your basic permit shows your Tasting Room as part of your bonded area, wine will transfer to the Tasting Room in bond for two reasons: to be sold or for tastings. If transferred in bond to the Tasting Room, when the wines sell to consumers, those wines will be dispatched as tax-paid.

disp from TR to TR customer

If you do move sale stock and tasting samples into your Tasting Room in bond, you will want to set up a storage area for your Tasting Room (bonded location) (Winery Setup – Infrastructure – Storage Area).

TR as bonded location

Once moved into the Tasting Room in bond, your wines used for tasting can be adjusted using the reason “Used for Tasting” (you add this to your Winery Setup > Manufacturing > Adjustment Reason).

used to tasting reason setup

These adjustments show up in your 702 under “Used for Tasting” (section B).

move 4 to TR; adj as usedmove to TR in bondadj - used for tasting - TR bond

It is not uncommon for Tasting Rooms to run a weekly or monthly sales and consumption report or maintain a hand-written inventory list or an Excel spreadsheet. You may choose to use these reports after-the-fact to reconcile your Tasting Room sales/tasting pours. You will want to ensure that you are able to “cut-off” these entries by the end of each of your TTB reporting periods.

If your Tasting Room is a tax-paid area, set it up as shown below; you dispatch wines for sale and tasting as tax-paid from this location.

TR as tax paid

Tfr to TR taxpaid

If you want to do further research on your own, here is the url for the TTB site’s FAQs:

Look for this question: What are the rules covering on premises sales and tasting of wine?

If you have questions, please contact your Compliance Officer, your legal adviser or the TTB.