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CBP Guidance on Tax Rate for Imported Wine

Tuesday, December 04, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a communication providing procedures and requirements regarding the Craft Beverage Modernization and Tax Reform Act’s temporary changes to the tax rate on (a) still wines having over 14 percent but not more than 16 percent alcohol by volume that are imported after Dec. 31, 2017, and before Jan. 1, 2020, and (b) certain low alcohol by volume wine and mead that are temporarily eligible for the same tax rate.

CBP states that affected importers may now claim this $1.07 rate at the time of entry summary. However, because this rate does not depend on a foreign producer assignment, importers should not use the CBMA entry summary line level flag in the Automated Commercial Environment to identify entry lines to which the $1.07 rate applies.

Similarly, CBP only processes and refunds CBMA claims pursuant to the assignment to an importer by a foreign producer/assigning entity of a reduced tax rate or tax rate incorporating applicable tax credits as permitted by the CBMA. Importers should therefore seek refunds from the Alcohol and Tobacco Tax and Trade Bureau if the importer paid a higher tax rate, rather than the $1.07 rate, on (a) still wines having over 14 percent but not over 16 percent alcohol by volume, (b) certain effervescent low alcohol by volume wine, or (b) certain effervescent mead.

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