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Import Tax Reduction for Distilled Spirits is Focus of CBP Regulatory Change

Friday, August 17, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued an interim rule designed to facilitate implementation of the Craft Beverage Modernization Act, which for two years provides lower tax rates and/or tax credits for limited quantities of distilled spirits, beer, or wine imported from qualifying foreign producers. To be eligible for a reduced tax rate or tax credit an importer must be able to substantiate that the foreign producer has assigned an allotment of its reduced tax rate or tax credits to the beer, wine, or distilled spirits imported by that importer. The revised regulations make clear that CBP has authority to refund the difference between the full excise taxes an importer pays at the time of entry summary filing and the CBMA’s lower effective tax rate, thus allowing importers to file refund claims with CBP.

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