When applying for a Distilled Spirits Plant (“DSP”) permit, one of the most common questions we hear is whether the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) will conduct an on-site inspection before approving the application. The short answer is: sometimes, but not always.
Years ago, a site inspection was part of the application process with TTB. However, these days, TTB does not automatically conduct a physical site inspection for every new DSP. In many cases, applications are approved based on the information submitted through Permits Online, including detailed diagrams, security descriptions, bond coverage (if applicable), and operational narratives.
However, TTB reserves the right to conduct an on-site inspection or pre-permit visit if it believes additional verification is necessary. This may occur if there are questions about the premises, bonded areas, security controls, source of funds, or the scope of proposed operations. From our experience, a site inspection is generally rare.
TTB inspections are more likely when the application involves complex operations, shared or alternating premises, non-traditional layouts, or inconsistencies in the application materials. An inspection may also be triggered post-approval, particularly as part of TTB’s compliance or audit functions. Importantly, even if no pre-approval inspection occurs, DSPs must be fully compliant and inspection-ready from day one, as TTB agents may visit the premises at any time during normal business hours.
Given the scrutiny applied to DSP applications and the operational risks associated with errors or omissions, it is critical that applicants submit accurate, well-supported materials and understand their ongoing compliance obligations.
How Lindsey Zahn P.C. Can Help with Your DSP Permit Application
Lindsey Zahn P.C. is an alcohol beverage law firm that advises distilleries and DSP applicants on federal permitting and ongoing compliance, including:
- Preparing and submitting DSP applications through TTB Permits Online
- Reviewing and drafting premises diagrams, operational narratives, and security descriptions
- Advising on bonded areas, recordkeeping, and excise tax obligations
- Identifying and mitigating issues that could trigger a TTB site inspection or delay approval
- Assisting with post-approval compliance, audits, and TTB inquiries
- Counseling clients on changes to operations, expansions, or alternating premises
If you are considering applying for a DSP or have questions about TTB inspections or compliance expectations, we encourage you to contact us to discuss your project.
📩 Email us at info@zahnlawpc.com
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