Customs and Border Protection finalizes regulations for drawback claims on taxes paid on exported wine and spirits

U.S. Customs and Border Protection has adopted final regulations on the new drawback process they were directed to implement under the Trade Facilitation and Trade Enforcement Act of 2015 (the TFTEA).

A little background:

Section 313 of the Tariff Act of 1930 authorizes Customs to refund or remit internal revenue tax paid on domestic alcohol (19 U.S.C. 1313(d)):

Upon the exportation of bottled distilled spirits and wines manufactured or produced in the United States on which an internal-revenue tax has been paid or determined, there shall be allowed, under regulations to be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, a drawback equal in amount to the tax found to have been paid or determined on such bottled distilled spirits and wines. In the case of distilled spirits, the preceding sentence shall not apply unless the claim for drawback is filed by the bottler or packager of the spirits and unless such spirits have been stamped or restamped, and marked, especially for export, under regulations prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury.

The TFTEA changed the drawback laws – and this new rule implements the changes establishing processes for drawback under the TFTEA by:

  • liberalizing standards for substituting merchandise
  • easing documentation and record keeping requirements
  • extending and standardizing timelines for filing drawback claims;
  • mandating electronic filing of drawback claims; and
  • clarifying the prohibition on filing a substitution drawback claim for internal revenue excise tax in situations where no excise tax was paid on the substituted merchandise or where the substituted merchandise is the subject of a different claims or refund or drawback of tax.You can read and download the new rule here. We’ve also embedded it here:

Ashley Brandt

Hi there! I’m happy you’re here. My name is Ashley Brandt and I’m an attorney in Chicago representing clients in the Food and Beverage, Advertising, Media, and Real Estate industries. A while back I kept getting calls and questions from industry professionals and attorneys looking for advice and information on a fun and unique area of law that I’m lucky enough to practice in. These calls represented a serious lack of, and need for, some answers, news, and information on the legal aspects of marketing and media. I've got this deep seeded belief that information should be readily available and that the greatest benefit from the information age is open access to knowledge... so ... this blog seemed like the best way to accomplish that. I enjoy being an attorney and it’s given me some amazing opportunities, wonderful experiences, and an appreciation and love for this work. I live in Chicago and work at an exceptional law firm, Goldstein & McClintock, with some truly brilliant people. Feel free to contact me at any time with any issues, comments, concerns… frankly, after reading this far, I hope you take the time to at least let me know what you think about the blog and how I can make it a better resource.

You may also like...

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: