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…

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TTB Publishes Final Rule Addressing Labeling and Advertising Regulations   Yesterday, TTB published a final rule that will implement Phase 2 of its rulemaking on modernization of the labeling and advertising regulations for alcohol beverages. In 2018, TTB proposed labeling and advertising amendments in Notice No. 176, Modernization of the Labeling and Advertising Regulations for Wine, Distilled Spirits, and Malt Beverages.  On April 2, 2020, TTB implemented “Phase 1” of the rulemaking, publishing a final rule, which adopted certain proposals from Notice No. 176.  On February 9, 2022, the TTB published the “Phase 2” final rule, which amends the labeling and advertising regulations for distilled spirits and malt beverages.  The final rule is effective 30 days from date of publication in the Federal Register, March 11, 2022. The changes in this final rule will not require industry members to make changes to labels or advertisements but will instead provide additional flexibility in the labeling and advertising of distilled spirits and malt beverages. TTB is currently working on “Phase 3” of the rulemaking, which will reorganize the wine labeling regulations, address the remaining labeling issues related to wine, and reorganize and finalize the regulations related to the advertising of wine, distilled spirits, and malt beverages. The “Phase 2” final rule finalizes, among other things, the following liberalizing changes to the distilled spirits regulations that were proposed in Notice No. 176: Brand Labels: The TTB has eliminated the requirement that certain mandatory information appear on the “brand label”. Previously, the term “brand label” was defined in current § 5.11…

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