News:

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