W holesalers may make drop shipments invoiced to a licensed retailer at the location of another licensed retailer under the following provisions:

1. (1) The licensed retailers and wholesaler concerned must sign a mutual "drop shipment agreement" approved by the department;
2. (2) The licensed retailer requesting drop shipment privileges must obtain and hold an alcoholic beverage transporter's license during the term of the agreement; and

3. (3) Each wholesaler shall identify each drop shipment invoice by adding to the usual invoice issued to a retailer the name, address, and license number of the licensed retailer receiving the drop shipment.

   This section does not apply to malt beverages and cider.

Source: 4 SDR 35, effective December 22, 1977; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 30 SDR 58, effective November 5, 2003; 45 SDR 83, effective December 18, 2018.

General Authority: SDCL 35-10-1 (2)(6) .

Law Implemented: SDCL 10-1-14 , 35-10-1(6).

Prior versions effective: 2003-11-05.