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Imported Alcohol Tax Reductions Extended Through 2020

Thursday, February 06, 2020
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued the following procedures and requirements for importations made in 2020 and claimed to be subject to the Craft Beverage Modernization Act. The CBMA provides lower tax rates and/or tax credits for limited quantities of distilled spirits, beer, or wine imported from qualifying foreign producers and was recently extended through Dec. 31, 2020.

CBP strongly encourages importers claiming the CBMA rate for imports in 2020 to do so at the time of entry summary. Importers also have the option of filing a post-summary correction within the applicable period to make and substantiate a CBMA claim. For liquidated entries, an importer may file a protest to submit a CBMA claim.

To make a complete CBMA claim, the importer must, in addition to flagging each line for which a claim is asserted or identifying CBMA as the protest issue, provide CBP with a complete and accurate CBMA spreadsheet, controlled group spreadsheet, and assignment certification. For claims submitted at time of entry or PSC, these documents must be uploaded into the Document Image System. For claims filed via protest, these documents must be uploaded in the Automated Commercial Environment protest module. Supporting documentation for paper entries and paper protests not submitted via ACE should be submitted to the entry unit at the port of entry.

CBP will process and liquidate calendar year 2020 CBMA claims on a monthly basis according to date of entry. CBP will begin its review with the oldest entry on file with a CBMA claim and work forward chronologically. If the importer has a complete, properly submitted, and valid claim and the assignment limit has not been reached at the time of CBP review, CBP will liquidate the entry and apply the CBMA rate. Claimants should file complete claims by the 15th calendar day of the month following the month of entry summary date to ensure proper CBP review and liquidation with applicable CBMA benefits.

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