Primary American Source of Supply (PASS): What It Means for Importing and Distributing Wine & Spirits in Florida

What is a “Primary American Source of Supply”?

A Primary American Source of Supply (often shortened to PASS) is a state‑law concept that designates the closest authorized US‑based source from which wholesalers may lawfully obtain a particular wine or spirits brand. The idea is to ensure tax control, traceability, and product authenticity by requiring wholesalers to buy directly from the brand owner/producer (or their exclusive agent) closest to the manufacturer—rather than from secondary “gray‑market” intermediaries. There is no federal PASS requirement; PASS and related sourcing rules are created and enforced state by state.

In practical terms: if you want your brand sold through licensed wholesalers in a PASS state, you (or your exclusive US agent) typically must register as the PASS for each brand before shipments can go to in‑state distributors.

Why States Use PASS

State alcohol agencies often describe PASS as a tax and public‑safety control—a way to keep a clean chain of custody from producer to consumer and to prevent diversion. Trade groups aligned with wholesalers emphasize that PASS helps fight counterfeits, aids recalls, and preserves transparency. Others argue PASS can restrict competition and limit access to rare or “orphaned” products; some major markets (like California) do not use PASS statewide.

Florida: How PASS Works for Wine & Spirits

Florida has parallel PASS statutes—one for wine and one for spirits—plus implementing rules.

Core statutes & definitions

Wine: Fla. Stat. §564.045 defines “primary American source of supply” as the manufacturer, vintner, winery, or bottler, or their legally authorized exclusive agent who is the closest source to the manufacturer from whom an American distributor can obtain the product.⁶
Spirits: Fla. Stat. §565.095 uses parallel language for spirits, substituting manufacturer, rectifier, or bottler (and their exclusive agent) as the PASS.

Both statutes allow an applicant who purchases directly from the manufacturer when no PASS exists to petition Florida’s Division of Alcoholic Beverages & Tobacco (ABT) for PASS licensure for that brand.

Licensure and brand fees

Licensure is required for the PASS before selling/offerings/shipments into Florida to distributors or importers.
Annual fees are per brand: $15 (wine) and $30 (spirits), tied to brands that require federal label approval and are scheduled for shipment into Florida; renewals are required each year.

“From the PASS only” sourcing rule

Florida closes the loop with a strict sourcing rule: Florida distributors and importers may accept wine or spirits shipped into the state only directly from a licensed PASS. No indirect, parallel, or cross‑state purchases are allowed if they bypass the PASS.

One PASS per brand & brand registration

One PASS per brand: Florida’s administrative rule requires that one primary American source of supply shall be designated for each brand handled in the state, and that the designated PASS file a registration application with ABT.⁹
Brand registration (separate from PASS licensure): each brand/label must be registered with ABT before it’s sold or transported in Florida; misalignment between brand registrations and PASS designations is a common compliance issue.¹

Private labels

Florida permits vendor‑owned private labels, so long as all other Beverage Law requirements (including PASS and brand registration) are met.

What Florida’s PASS Laws Means in Day‑to‑Day Practice

Designation & documents. The brand owner/manufacturer designates its PASS (often an exclusive US agent/importer) and provides documentation establishing exclusive authority or “closest source” status.

File PASS license. The PASS applies to ABT, paying $15 per wine brand; spirits brands use §565.095 at $30 per brand.

Register brands. The owner/PASS completes brand registration for each label/size.

Shipments/invoicing. Florida wholesalers may purchase only from the licensed PASS; invoices into Florida should reflect PASS → Florida distributor.

No PASS? Petition. If a brand has no existing PASS (e.g., “orphan” brands), an applicant may petition ABT to be licensed as PASS based on manufacturer representations.

How Other States Treat PASS (A Quick Tour)

Texas requires that a nonresident seller be the PASS to solicit/fill orders from Texas wholesalers/wineries. PASS is the distiller/producer/owner at marketability/bottler/exclusive agent. Texas generally allows only one PASS, with a notable carve‑out: wine bottled or produced outside the United States may have more than one PASS to Texas.
Arizona makes it unlawful for suppliers/wholesalers/retailers to transact unless the supplier is the PASS; all spirits shipped into the state must be invoiced by the PASS, with strong enforcement tools.
Massachusetts (license model) operates with a primary‑source/authorized‑source limitation for wholesalers; functionally similar to PASS though implemented through agency practice and purchasing restrictions rather than a single “PASS license” construct.
New York has debated PASS; recent bills would have required wine and liquor to be received from a registered PASS, but such measures have not been enacted statewide.
Control jurisdictions (e.g., several states for spirits) rely on state purchasing rather than PASS; the state is the wholesale gatekeeper.

Common Pitfalls

Mismatch between the entity listed as brand owner on the Florida brand registration and the entity designated/licensed as PASS. Align the paperwork.
Shipping before licensure. Distributors cannot receive Florida‑bound product unless the PASS license is active for that brand.
Corporate changes (mergers, assignments) without updating PASS designations and brand registrations before shipments resume.
Private label ambiguity. Even when a retailer “owns” the mark, you still need a designated PASS and brand registration; the contracted producer’s role must be clear.

Florida PASS Checklist

Exclusive designation letter from manufacturer/brand owner naming the PASS (or evidence showing the PASS is the “closest source”).
PASS licensure filed with ABT, listing each brand (wine: $15/brand; spirits: $30/brand), with annual renewal ticklers.
Brand registrations (Rule 61A‑4.005) filed and kept current for all labels/sizes.
Distributor appointment documents aligned with PASS/brand records (not a statutory PASS requirement, but operationally critical).
Invoice trail showing PASS → Florida wholesaler for all Florida‑bound product.

Frequently Asked Questions

Is PASS a federal requirement?

No. PASS is purely state‑law; federal law (TTB) governs permits, import entries, COLAs, and trade practices, not PASS.

Can a brand have multiple PASSes?

In Florida, no—administrative rules contemplate one PASS per brand. Texas is a notable exception for foreign‑bottled wine, which may have more than one PASS.

What about direct‑to‑consumer (DtC) shipments?

PASS governs wholesale sourcing into the three‑tier channel. DtC privileges (where allowed) operate under separate licensing schemes and are outside PASS. (Still, ensure brand registrations and federal labeling are in order.)

Takeaways

Florida is a classic PASS state: designate a single PASS per brand, license the PASS, register brands, and ensure Florida distributors only purchase directly from the licensed PASS.
State differences matter. If your growth plan includes Texas, Arizona, Massachusetts, New York, or control states, expect different mechanics and plan documentation and contracts accordingly.¹

If you’re organizing a new supplier/importer relationship or cleaning up legacy paperwork, we can help assemble the designation package, file PASS licensure, complete brand registrations, and align your distributor agreements to keep product flowing without interruptions.

Because we’re attorneys: Disclaimer. Published 08/24/2025.

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