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New CBMA Guidance Further Clarifies Excise Tax Rules for Imported Beverages

Last week Customs & Border Protection (CBP) issued additional guidance on the Craft Beverage Modernization Act (CBMA) rules for applying the CBMA lower excise tax rates (for beer and distilled spirits) and credits (for wine) to alcohol beverages imported from other countries.

The new guidance provides further clarity on the procedures required to make claims for drawback (refund) of taxes paid at the non-CBMA rate on product imported since the beginning of calendar 2018. It also indicates that CBP expects to provide additional guidance this month (October) on taking the lower rates and credits contemporaneously with importing additional product going forward. Among other things, CBP apparently will soon publish: (1) a Controlled Group Spreadsheet to track eligibility for the lower rates and credits; and (2) an Assignment Certification that foreign producers must execute and their importers must file in order to claim the CBMA lower rates and credits.

In short, if CBP can keep to its timetable, importers can begin claiming the lower CBMA rates and credits by the end of the month.

 

© 2022 McDermott Will & EmeryNational Law Review, Volume VIII, Number 281
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About this Author

McDermott’s Food, Beverage & Agribusiness team comprises leading regulatory lawyers who advise on the regulation, licensing, distribution, labeling, current Good Manufacturing Practices, e-commerce, advertising, false claims and marketing of food and beverage products, as well as their related inputs.

We regularly represent clients and trade groups in preparing and submitting comments to agencies on emerging regulatory issues. For example, the passage of the Food Safety Modernization Act has ushered in a new wave of regulatory proposals and challenges for those involved in the...

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