RULES FOR RETURN OF ALCOHOLIC LIQUOR
ORDINARY AND USUAL COMMERCIAL REASONS
Effective February 1, 2019
It is the policy of the Iowa Alcoholic Beverages Division (ABD) to ensure compliance with federal law and regulations on all alcoholic liquor products sold by ABD, as well as the conditions and limitations set forth regarding returns for ordinary and usual commercial reasons.
ABD, as a state agency operating as a wholesaler of record for class 'E' licensees, will comply with the Federal Alcohol Administration Act and the regulations issued there under. The federal Alcohol and Tobacco Tax and Trade Bureau (TTB) prohibits the sale of products with the privilege of return for any reason other than those considered to be ''ordinary and usual commercial reasons.'' (27 C.F.R. 11.31(a))
Therefore, ABD will only consider requests for returns based on the following ordinary and usual commercial reasons:
Defective products: Products which are unmarketable for reasons such as product deterioration, leaking containers, damaged labels, or missing or mutilated tamper evident closures. (27 C.F.R. 11.32)
Error in products delivered: A discrepancy between products ordered by a class ''E'' licensee and products delivered by ABD (ex: shortages, overages). (27 C.F.R. 11.33)
Products which may no longer be lawfully sold: Products of a particular size or brand that are no longer permitted to be sold due to a change in regulation or administrative procedure. (27 C.F.R. 11.34)
Important to note: ABD is under no obligation to accept a return for any of the allowable reasons outlined above. (27 C.F.R. 11.31(b)) If ABD chooses to accept a return, a class ''E'' licensee will receive cash or credit for the return.
ABD will not accept a return for the following reasons:
Misorders: The attempt to return a product on the basis of a class ''E'' licensee incorrectly ordering from ABD, often referred to as a ''misorder,'' is not an ordinary and usual commercial reason for a return. Examples of misorders include, but are not limited to, a class ''E'' licensee ordering too much, too little, or the incorrect brand or size of a product.
Overstocked and slow-moving products: The attempt to return a product because it is overstocked or slow-moving does not constitute an ordinary and usual commercial reason for a return. (27 C.F.R. 11.45)
Seasonal products: The attempt to return products for which there is only a limited or seasonal demand, such as holiday decanters and certain distinctive bottles, does not constitute an ordinary and usual commercial reason for a return. (27 C.F.R. 11.46)
All return requests must be submitted electronically using the Return Form. A return request will be submitted within three business days from the date the product to be returned was delivered by ABD. ABD will review return requests on a case-by-case basis, and may require further investigation by ABD personnel before a return is authorized. Product(s) authorized for return by ABD will be picked up by the ABD driver during the next regularly-scheduled delivery. ABD drivers will not accept returns that have not been pre-authorized and communicated to the class ''E'' licensee prior to the next scheduled delivery.
Additional requirements that will ease the processing of returns include:
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