The Craft Beverage Modernization and Tax Reform Act of 2017 didn’t just help domestic producers, it lowered excise taxes for imported beer and distilled spirits and allowed for a tax credit on imported wines in addition to domestic wines. U.S. Customs and Border Protection was tasked with establishing procedures for an importer to receive a lower effective excise tax rate on qualifying imports of beer, wine, and distilled spirits. And the U.S. Customs and Border Protection just announced that importers looking to obtain refunds should be able to start claiming those within the month.
Recently, the CBP provided more guidance for importers on the procedures they’ll need to adhere to in achieving the credits and lower tax rates available thanks to the Craft Beverage Modernization and Tax Reform Act of 2017. You can read the full guidance on the procedures and requirements for importers here.
The important points from the guidance that will let importers start benefiting from the credits and lower tax rates are the following:
- These procedures let importers start making claims for activities dating back to January 1, 2018, when the Act’s provisions took effect – and for those claims moving forward;
- Every importer will need to provide a Controlled Group Spreadsheet with the required information – a template should soon be available:
The Controlled Group Spreadsheet includes the following information: IOR Number; Controlled Group Name; Controlled Group Member Information; Foreign or Domestic Controlled Group Member; and Annual Production. Each data field is further described in the template posted on CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017. Each importer will submit a separate Controlled Group Spreadsheet for each Controlled Group to which the importer belongs. Importers submitting the Controlled Group Spreadsheet should upload the Excel (not .pdf) spreadsheet to DIS, and link to the Importer of Record number. For paper submissions, importers will email the completed Excel (not .pdf) spreadsheet to CBMA@cbp.dhs.gov. While CBP does not require the filing of the Controlled Group Spreadsheet with every entry on which a CBMA claim is made, the relevant Controlled Group Spreadsheet is required to be on file for every entry for which the importer asserts a CBMA claim. In the event that there is a change in the reported Controlled Group or the importer receives an assignment from a new foreign producer/assigning entity, the importer will immediately submit a new Controlled Group Spreadsheet reflecting the updates.
- A template with information required for claiming the lower tax rates and credits should also be available soon and must also be submitted:
The CBMA Spreadsheet includes the following information: Entry Number; Entry Line Number(s); Importer of Record (IOR) Number; Protest Number (if applicable); Alcohol Type; CBMA Tax Rate or Credit Assigned and Requested by Line; Quantity Claimed for CBMA Tax Rate or Credit by Line; Estimated Excise Tax Paid by Line for Quantity Claimed; Excise Tax Claimed to be Owed by Line for Quantity Claimed; Refund; Total Annual Assignment Received from Assigning Entity to Date; Total Annual Assignment Taken to Date; Total Annual Assignment Remaining to Date; FDA Manufacturer Name; Controlled Group Name; Foreign Producer/Assigning Entity Name and Information; Date of Submission for Controlled Group Spreadsheet ; and Date of Submission for Assignment Certification Submitted. Each data field is further described in the template posted on CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017. Importers will submit the Excel (not .pdf) spreadsheet via the Document Image System (DIS), linked to the entry number. For paper submissions, importers will email the completed Excel (not .pdf) spreadsheet to CBMA@cbp.dhs.gov. A separate CBMA Spreadsheet should be completed for every entry for which the importer asserts a CBMA claim. and
- Foreign producers will need to give Customs and Border Protection or their importer an assignment on a template that should also be available soon:
The Assignment Certification must be issued on the letterhead of the foreign producer/assigning entity. Further, the Assignment Certification is required to be signed by a duly authorized officer or employee of the foreign producer/assigning entity. Importers will submit the Assignment Certification via DIS, linked to the IOR. While CBP does not require the filing of the Assignment Certification with every entry on which a CBMA claim is made, an Assignment Certification must be on file with CBP that validates the assignment for every entry for which the importer asserts a CBMA claim. In the event that there is a change, such that a new Assignment Certification is required, the importer will immediately submit a new Assignment Certification reflecting the updates. The template for the Assignment Certification is posted to CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017.