If you operate as a U.S. alcoholic beverage importer that remits federal excise tax, or a foreign supplier of alcohol with products that are offered for sale in the U.S. there are essential, recently implemented changes that must be understood and adhered to as it pertains to remitting the tax and requesting tax credits under the Craft Beverage Modernization Act (CBMA). The CBMA provisions of the U.S. Internal Revenue Code provide for reduced rates or tax credits for beer, wine, and distilled spirits produced in or imported into the United States.
Foreign suppliers/producers can utilize the same tax credits as domestic producers by assigning the tax credits to the U.S. importer working with the foreign supplier. For the last four years, and until January 1, 2023, U.S. Customs and Border Protection (CBP) has administered the CBMA tax provisions related to imported products. As of January 1, 2023, importers who want to take advantage of assigned tax benefits must pay the full tax rate to CBP and then subsequently submit a claim to TTB for a refund. Also, the TTB and not the CBP will be responsible for administering the tax benefits for products entered for consumption in the United States on or after January 1, 2023.
TTB will provide additional information about the CBMA importer refund claims system in the coming weeks. Additional information about CBMA import refund claims is available here.
Last modified: February 13, 2023