HTSUS 2106.90.18.00 — Containing over 50 percent of alcohol by weight

Duty Rates

General (Col 1)

17¢/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)

$1.76/kg + 25%

Unit of Quantity

[kg]

Frequently asked questions

What is NAICS 2106.90.18.00?

NAICS 2106.90.18.00 is the North American Industry Classification System code for Containing over 50 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 over 50 percent of alcohol by weight need?

A Containing over 50 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 over 50 percent of alcohol by weight business in the United States?

To register a Containing over 50 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 over 50 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 over 50 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 over 50 percent of alcohol by weight describes your main line of business, NAICS 2106.90.18.00 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 2106.90.18.00 description and exclusions to confirm it fits your operations.

Does a Containing over 50 percent of alcohol by weight need special insurance for alcohol-related liability?

Yes, liquor liability insurance (also called dram shop insurance) is essential for any business selling or serving alcohol. It covers bodily injury and property damage claims related to serving intoxicated persons or minors (dram shop laws in 43 states impose liability on establishments for injuries caused by intoxicated patrons). Host liquor liability covers special events. Assault and battery coverage is often needed for bars and nightclubs. Typical per-occurrence limits: $1M for a small venue, with higher limits for larger operations. Many states and landlords require this as a condition of licensing.

Does a Containing over 50 percent of alcohol by weight need trade practice and tied-house compliance?

Federal tied-house laws (27 CFR Part 6 for spirits/wine, Part 10 for beer) prohibit producers and wholesalers from providing anything of value to retailers that could influence product selection — 'pay-to-play.' Prohibited activities include: paying for shelf space or displays, providing free equipment (coolers, tap systems — with limited exceptions), giving free products, and paying for advertising on retailer premises. State enforcement is often more restrictive. Violations result in license suspension or revocation. The 'safe harbor' for legitimate merchandise displays is very narrow — always consult TTB industry circulars.

What are direct-to-consumer (DTC) shipping rules for a Containing over 50 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 over 50 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).