What is a Consignment Sale?
At recent conferences, we’ve been asked “what is a consignment sale?” Under federal regulations, the consignment sales provisions of the FAA Act, 27 U.S.C. 205(d), make it unlawful for an industry member (such as a producer, importer, or wholesaler of malt beverages, wines, or distilled spirits) to sell, offer for sale, or contract to sell to any trade buyer (a wholesaler or retailer), or for a trade buyer to purchase, offer to purchase, or contract to purchase any products:
(a) on consignment; or
(b) under conditional sale; or
(c) with privilege of return; or
(d) on any basis other than a bona fide sale; or
(e) where any part of the sale involves, directly or indirectly, the acquisition by the industry member of other products from the trade buyer or the agreement to accept other products from the trade buyer.
Sales “on consignment,” as that term is used above, are arrangements in which the trade buyer (i.e., a wholesaler or retailer) is under no obligation to pay for distilled spirits, wine, or malt beverages until they are sold by the trade buyer. See 27 CFR 11.22.
If you have questions as to whether a sale is a “consignment sale” see TTB Trade Practice Videos: Consignment Sales and Industry Circular 2022-1, Payment Terms Under Consignment Sales Provisions for further information. We hope that these resources answer your questions!
If you still have questions, you can contact our Market Compliance Office at 202-453-2251, (option 2), or by email at TradePractices@ttb.gov.
Avoiding Common Errors on Label Applications – Providing Translations of Label Text
 One of the most common problems we encounter when reviewing applications for label approval (COLAs) are labels that contain text in languages other than English without a translation provided on the application. On many labels for imported products, the mandatory label information appears in English, as required by TTB regulations. However, often other label text, such as an explanation of the production process, the history of the manufacturer, or a description of how the product tastes, is not in English.
Text other than English on a label is subject to all the same rules that apply to English text. The most efficient way for TTB to ensure text is not misleading or prohibited, and that it doesn’t conflict with mandatory label information, is for the applicant to provide a translation.
Memorial Day Observance
Memorial Day is observed annually on the last Monday in May to honor the men and women who died while serving in the U.S. military. TTB joins the White House in observing Memorial Day.
In recognition of Memorial Day, TTB offices will be closed on Monday, May 27.
|
