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Will ban be lifted on US Postal Service delivering alcohol?

The newly proposed USPS Equity Act could enable the post service to deliver alcohol directly from producers and retailers to consumers in the United States.

Currently, only private shipping companies such as FedEx and UPS are permitted to ship alcoholic drinks to homes in the US, with the national postal service forbidden from doing so since Title 18 of the US Code was enacted during Prohibition.

On 18 September 2024 Senator Jeff Merkley of Ohio proposed the USPS Equity Act bill, which if passed would lift the ban. Five previous attempts to axe the ban – most recently made by California Congresswoman Jackie Speier in 2013 and again in 2015 – have been unsuccessful, so hopes are not exactly running high.

If it does get passed, the bill would put the US post service on equal parity with private shipping companies, helping to create a fairer landscape by drumming up competition for shipping rates. It would also enable alcohol producers to reach consumers living in rural or remote areas not covered by the private courier firms.

Furthermore, Senator Merkley estimates that the bill would generate US$190 million per year for the postal service, which reported a net loss of billions of dollars last year.

Opposition

Those who oppose the bill are concerned that it would represent federal government endorsement of interstate wine shipping. There are also worries that alcohol may become more accessible to underage drinkers if the post service is able to deliver booze.

According to a statement published on Senator Merkley’s website, “The bill would give the USPS two years to develop regulations and implement the law to ensure the agency can safely make the deliveries to adult consumers with identification checks in place.”

Other critics of the bill fear a loss of government tax collection on the items being shipped.

“All American businesses deserve the same access to the US Postal Service when it comes to delivering their products to their consumers—and we all have a vested interest in making sure the USPS thrives,” Senator Merkley said.

“Eliminating a Prohibition-era ban on shipping wine, beer, and spirits through the mail will ensure that wineries, breweries, and distillers in Oregon and throughout America have another option to consider when it comes to selling their world-class products, while also helping to boost the competitiveness of the USPS.”

The post service itself has so far declined to comment on the proposed bill, though the legislation has received endorsements from the Brewers Association for Small and Independent Craft Brewers, and the American Craft Spirits Association.

Trade bodies Wine America and the Kentucky Distillers’ Association came out in support of the bill in 2015 when it was proposed by Jackie Speier, who said at the time: “Prohibition is history, and this ban should be too.”

 

 

 

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