The Craft Beverage Modernization Act (CBMA) provisions of the Internal Revenue Code (IRC) provide for reduced rates or tax credits for certain quantities of beer, wine, and distilled spirits produced in or imported into the United States. A recent change in the law transferred responsibility for administering the CBMA tax benefits for imported alcohol from U.S. Customs and Border Protection (CBP) to Alcohol and Tobacco Tax & Trade Bureau (TTB) beginning with products entered for consumption in the United States on or after January 1st, 2023. Accordingly, TTB is publishing a temporary rule implementing these provisions and providing procedures for foreign producers and importers.  The TTB is also publishing a notice of proposed rulemaking to obtain comments on the provisions in the temporary rule, which are due by November 22, 2022. Under the new CBMA import refund provisions of the IRC, importers must pay the full rate of tax to CBP on beer, wine, and distilled spirits entered for consumption in the United States on or after January 1, 2023.  To take advantage of the CBMA tax benefits, the importer must subsequently file a refund claim with TTB using the new “myTTB online system”. Importers may file refund claims after the close of each calendar quarter covering their entries in that quarter. An importer cannot claim a refund unless the foreign producer of the imported beer, wine, or distilled spirits has registered with TTB and assigned their CBMA tax benefits to that importer using the myTTB online system. TTB expects the myTTB online system to be available to foreign producers…

Posted in ACSA, alcohol beverage law, Craft Spirits, TTB | Comments Off

A recent Daily Beast article outlined the current state of direct to consumer shipping of spirits from distilleries. The article notes that several states, including KY, have recently passed laws allowing distilleries to ship spirits directly to your home, and asks, will the rest follow? In response, WSWA issued a press release outlining alleged inaccuracies in the Daily Beast article.   To learn more about state laws governing DTC from distilleries, please find a wealth of information on the American Craft Spirits Association website.    

The Craft Beverage Modernization and Tax Reform Act (CBMTRA) has no doubt benefited those in the alcohol beverage industry. The tax relief under the CBMTRA is set to expire at the 2019. Industry members, including the American Craft Sprits Association (ACSA), are working hard to extend the tax benefits under the CBMTRA indefinitely. If you want to learn about the following: Outlook of the current status of tax legislation and extension efforts; Possible impact to your clients on December 31, 2019; If and how other issues, like the impeachment proceedings, could impact the Congressional agenda. Then please join ACSA’s public policy counsel, James Hyland of the Pennsylvania Avenue Group, on October 16th at 3pm EST for a complimentary webinar.

Posted in ACSA, alcohol beverage law, Craft Spirits, Distribution, TTB | Tagged ACSA, CMBA, Taxes | Comments Off