On June 27, 2018, U.S. Customs and Border Protection (CBP) issued guidance on the Craft Beverage Modernization and Tax Reform Act of 2017 (CBMA) in Cargo Systems Messaging Service (CSMS) #18-000403.
According to the CSMS, “importers will continue to pay the full excise tax rate at the time of entry summary filing” and CBP is working with the Department of Treasury (Treasury) to amend regulations to allow CBP to issue refunds owed on entries that are subject to the CBMA. In anticipation of these regulation changes, CBP suggests that importers “file protests on liquidated entries for which a CBMA reduced tax rate or credit rate may be due.” Additionally, CBP states that Post Summary Corrections may not be used to request the refunds until the regulations have been updated and any programming has been completed.
The CSMS also contains information on how an importer may substantiate its eligibility for a reduced tax rate or credits by including the following information in their internal records:
-
“Foreign producer’s name;”
-
“Foreign producer’s manufacturing facility address and FSMA registration number;”
-
“Number of barrels of beer, number of gallons of wine, and number of proof gallons of distilled spirits eligible for each reduced rate/tax credit assigned to the importer for the calendar year by the representative of the foreign producer authorized to assign its allotment, and documentation showing that quantity as assigned to that specific importer;”
-
“Contact information for such authorized representative;”
-
“Statement from the authorized representative of the qualifying foreign producer that the number of barrels or wine/proof gallons assigned by the foreign producer (including any members of a controlled group) to all importers for the calendar year does not exceed the quantities allowed by law and does not exceed the foreign producers capacity.”
CBP will not process refund requests before January 15, 2019. CBP will publish further instructions via CSMS once CBP is capable of accepting refund requests.
The CSMS may be found here:
