HTSUS 2106.90.12.00 — Containing not over 20 percent of alcohol by weight

Duty Rates

General (Col 1)

4.2¢/kg + 1.9%

Special (FTA)

Free (A*,AU,BH,CL,CO,D,E,IL,JO,KR,MA,OM,P,PA,PE,S,SG)

Column 2 (Non-NTR)

44¢/kg + 25%

Unit of Quantity

[kg]

Frequently asked questions

What is NAICS 2106.90.12.00?

NAICS 2106.90.12.00 is the North American Industry Classification System code for Containing not over 20 percent of alcohol by weight. It classifies this business activity for statistical, regulatory, and government procurement purposes. Federal agencies use NAICS codes to collect and publish data about the US economy, determine SBA size standards, and set aside contracts for small businesses.

What licenses and permits does a Containing not over 20 percent of alcohol by weight need?

A Containing not over 20 percent of alcohol by weight typically needs a local business license, a federal EIN from the IRS, and industry-specific permits depending on the sector. Check with your city or county clerk for a general business license, your state's professional or industry licensing board for any required occupational licenses, and your state's tax authority for a sales tax permit if you sell taxable goods or services.

How do I register a Containing not over 20 percent of alcohol by weight business in the United States?

To register a Containing not over 20 percent of alcohol by weight business, first choose your legal structure: sole proprietorship (simplest, uses SSN), LLC (personal liability protection, files with your Secretary of State), or corporation (Form 1120 or 1120-S). Register your business name (DBA) with your county if operating under a trade name. Obtain an EIN from the IRS at irs.gov/ein. Register with your state revenue department for any applicable taxes.

What tax forms does a Containing not over 20 percent of alcohol by weight file with the IRS?

Tax forms depend on your entity type. A sole proprietor files Schedule C with Form 1040 and Schedule SE for self-employment tax (15.3%). An LLC taxed as a partnership files Form 1065 with Schedule K-1s. A C-Corporation files Form 1120 (21% flat rate). An S-Corporation files Form 1120-S. All businesses paying employees file Form 940 (FUTA) annually and Form 941 quarterly. Estimated tax payments are made via Form 1040-ES four times per year.

Is Containing not over 20 percent of alcohol by weight the right NAICS code for my business?

Your NAICS code should reflect your primary business activity — the one generating the most revenue or value. If Containing not over 20 percent of alcohol by weight describes your main line of business, NAICS 2106.90.12.00 is likely correct. If you have multiple distinct activities, you may need separate codes for statistical reporting. For federal contracting, your SAM.gov registration should use the code that best matches the work you perform. Review the official NAICS 2106.90.12.00 description and exclusions to confirm it fits your operations.

What are direct-to-consumer (DTC) shipping rules for a Containing not over 20 percent of alcohol by weight?

DTC alcohol shipping is heavily regulated and state-specific. Wine: 47 states plus DC allow DTC wine shipping from licensed wineries, with volume limits (1-24 cases per consumer per year) and common carrier reporting requirements. Beer and spirits: DTC shipping is illegal in most states for beer (only ~10 states permit) and spirits (only ~9 states permit). All DTC shipments require age verification (21+) upon delivery via common carrier policy. States may require sales/excise tax collection, annual reporting, and permits. Interstate commerce without proper licensure in both the origin and destination states is illegal.

Does a Containing not over 20 percent of alcohol by weight need a TTB federal permit?

Yes. The Alcohol and Tobacco Tax and Trade Bureau (TTB) requires federal permits for all alcohol producers, importers, and wholesalers. Brewers need a Brewer's Notice. Wineries need a Federal Basic Permit. Distillers need a Distilled Spirits Plant (DSP) permit. Importers need a Federal Basic Importer's Permit. Wholesalers need a Federal Basic Wholesale Permit. Each requires extensive applications, site inspections, background checks, and bonding. Permits are indefinite but can be revoked for non-compliance. Operating without one carries fines and criminal liability for illegal alcohol manufacturing (Title 26 USC).

What ABC (Alcoholic Beverage Control) license does a Containing not over 20 percent of alcohol by weight need?

All 50 states plus DC require state-level alcohol licenses. License types include: Manufacturer (brewery, winery, distillery), Wholesaler/Distributor, and Retailer (on-premise consumption and off-premise package sales). States are either control states (17 states where the state sells spirits directly) or license states (private sector). Each license type has production limits (e.g., microbrewery up to 60,000 barrels), location restrictions, and zoning requirements. License availability may be capped through quota systems. Annual renewal, fee payment, and compliance training are required.

What is three-tier distribution and how does it affect a Containing not over 20 percent of alcohol by weight?

The three-tier system (producer/brewer → distributor/wholesaler → retailer) is the federal and state regulatory framework requiring separation of alcohol production, distribution, and retail tiers. Most states prohibit a single company from operating in all three tiers simultaneously (tied-house laws). Exceptions: brewpubs, craft breweries, and small wineries often can self-distribute within certain volume limits or have on-premise sales privileges. Some states (Washington, Arizona, DC) allow direct-to-consumer wine shipping from out-of-state wineries. Fragmented across states — check your state's ABC for specific tied-house and franchise law restrictions.