Many Washington, D.C. alcohol beverage wholesalers are using Importation Permits from the Alcoholic Beverage Regulation Administration (ABRA) to both bring their products into the District, and pay their alcohol excise taxes. This process is unnecessary for wholesalers.
For the most part, there is a better way and it avoids extra fees, taxes, and hours of waiting in line and filling out forms. The alternative approach can allow alcohol beverage wholesalers in D.C. to avoid many of these inefficiencies by using a relatively unknown filing at the D.C. Office of Tax and Revenue (OTR), the FR-425.
In fact, by switching to paying excise taxes with an FR-425, instead of using Importation Permits, a D.C. Wholesaler can:
- Avoid having to file an Importation Permit for every shipment brought into the District;
- Avoid paying Importation Permit fees;
- Not have the shipper carry the completed Importation Permit for every shipment;
- Qualify for excise tax breaks; and
- Skip hours of time spent waiting at ABRA every month.
If you have never completed this filing, OTR may require back filings for the months when filings were not made. If you need any assistance obtaining these forms (they aren’t available online), completing them, or would like to speak with an attorney about Washington, D.C. alcohol beverage law issues, please contact us.