TLR is dedicated to keeping our customers informed and up to date on regulatory changes that may affect the wine and spirits industry.
On December 27, 2020, the Taxpayer Certainty and Disaster Tax Act of 2020 made permanent most of the provisions of the Craft Beverage Modernization Act (CBMA). There were, however, several substantial changes made to the existing provisions.
Most notably, beginning with products entered for consumption in the US on or after January 1, 2023, Customs and Border Protection will no longer be responsible for administering CBMA tax benefits for imported alcoholic beverages. Management of the program will transition to the Alcohol and Tobacco Tax and Trade Bureau.
Additionally, importers will be required to pay the full tax rate to CBP upon entry. Refund claims will be eligible for filing the quarter after the goods are entered (e.g., entries filed between January 1, 2023, and March 31, 2023, will be eligible for refund claim on April 1, 2023; entries filed between April 1, 2023, and June 30, 2023, will be eligible for refund claim on July 1, 2023, etc.)
Furthermore, foreign producers and importers will be required to register with TTB and create a “myTTB” account to assign and/or receive benefits. Foreign producers and importers may utilize a third-party agent to set up and manage their myTTB account and benefit assignments.
Stay informed and up-to-date
TLR recognizes the difficulty this requirement may pose to you and your foreign producers and is prepared to act as a third-party agent to facilitate the continued application of CBMA benefits. As with any change in procedure, there is still much to be defined within the program, and we fully expect significant delays in refund distribution.
TLR will continue to monitor the progress and updated guidance as it is issued and will be a resource for our customers and your suppliers as you work through these changes.
Contact one of our CBMA experts today for more information: CBMA@shiptlr.com.