This document summarizes possible \”terms of sale\” clauses that might be used in the sale and shipment of alcohol for personal use by a licensed manufacturer or retailer to an individual consumer who is located in a Canadian province (the “destination province”) that is different from the location of the licensee (i.e. an interprovincial direct to consumer or “DTC” sale).
Canadian Alcohol Compliance Series
Title: DTC InterProvincial Shipping of Alcohol – Sample Terms of Sale
Date: October 9, 2019
Author: Mark Hicken, BA JD
This document contains a general discussion of the issues noted which was prepared on the date noted above. It does not constitute legal advice and was not prepared for you specifically. If you or your business needs legal advice, you should contact a lawyer for individual and updated advice.
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Accompanying Articles: InterProvincial Shipping Discussion and InterProvincial Shipping Current Provincial Laws Summary
The following are sample terms of sale that have been typically used by manufacturers in various situations. These examples are intended to provide perspective and are not recommendations to use any particular approach. Please see the accompanying articles for more discussion of the relevant issues and considerations.
For example, if it was decided to only ship to provinces where the liquor boards allow shipping, it might be desired to use the following terms and conditions statement:
The following terms and conditions apply to this sale. (Vendor name) only ships alcohol to those provinces where the relevant liquor authority permits such shipments. At the present time, such provinces include (list provinces). (Vendor name) will not accept orders from nor ship alcohol to any other provinces. Please note that this list may change often. Sales taxes will be charged on this transaction based on the taxes and rates that are applicable in the destination province. Title to all alcohol sold by (vendor name) passes to the buyer at the vendor in (province of sale), at the time of sale. This transaction is governed exclusively by the law of (province of sale).
For example, if it was decided to only ship “on behalf of the customer”, it might be desired to use the following terms and conditions statement:
The following terms and conditions apply to this sale. Title to all alcohol sold by (vendor name) passes to the buyer at the vendor in (province of sale), at the time of sale. The customer is solely responsible for any subsequent shipment of the alcohol which shipments will only be made on behalf of the customer as his/her agent. The vendor makes no representations as to the legality of shipping alcohol to other Provinces. This transaction is governed exclusively by the law of (province of sale).
For example, if it was decided to only ship if the customer arranges the shipping, it might be desired to use the following terms and conditions statement:
The following terms and conditions apply to this sale. Title to all alcohol sold by (vendor name) passes to the buyer at the vendor in (the province of sale), at the time of sale. The customer is solely responsible for and must make arrangements for any subsequent shipment of the alcohol. The vendor makes no representations as to the legality of shipping alcohol to other Provinces. This transaction is governed exclusively by the law of (province of sale).
Vendors may wish to obtain specific legal advice on these options and the potential consequences/risks of using any particular option.