How to differentiate between the primary source and the sole source for Colorado label registration
During a recent community webinar chat with the head of Colorado’s department of revenue and liquor enforcement, Sandra Lowman shed some valuable insight that will better how suppliers and distributors do business and register labels in the state of Colorado.
First, for each specific alcoholic product, there is only one primary source. An example of this primary source can be a U.S. importer. The Colorado distributor that works with this US importer is considered as the sole source and thus needs to pay the one time $100.00 brand fee and $5.00 label registration fee. An appointment letter from the US importer to the sole source is a means to clarify who is the primary source and who is the sole source. Still have questions regarding the differences between the primary and sole source? Check out the diagram below for further clarification.
Second, sometimes the sole source uses a different name than their DBA (Doing Business As) name and therefore, the entity risks being charged the $100.00 fee twice. If the sole source has a different name than their DBA name, Sandra urges you to insert a caption in PRO (Product Registration Online) with your DBA name if it is different than your sole source name. This way, she “can connect the dots” and only bill the sole source a $100.00 once per brand.
*Please note that when the state of Colorado mentions Importer, they are really referring to a Distributor.