TTB Addresses Alcohol Returns for COVID-19-related Event Cancellations

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The Tax and Trade Bureau has announced that it will not consider returns of alcohol beverage products purchased to sell during events cancelled due to COVID-19 to violate federal consignment sales rules (prohibiting the sale or purchase of alcohol beverage products with the privilege of return not attributable to ordinary and usual commercial reasons) provided the products were not initially purchased or sold with the privilege of return. However, even though such returns are lawful, a producer or wholesaler is not required to accept returns of such products.

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