U.S. Customs and Border Protection has announced that on April 6 it will deploy enhancements to the Automated Commercial Environment reflecting the Craft Beverage Modernization Act, which allows for reduced duty rates or tax credits on distilled spirits, beer, and wine classified under 92 HTSUS Chapter 22 numbers and imported from qualifying foreign producers.
As part of this deployment, trade users will be required to transmit seven data elements for CBMA claims.
- the name that will be used for CBMA purposes to identify the controlled group (e.g., parent company name)
- identifying code for the foreign producer or assigning entity named as foreign producer
- name of the foreign producer/assigning entity as it appears on the assignment certification or the Food and Drug Administration manufacturer name as specified on the FDA message set
- (1) total annual assignment to the importer by the foreign producer/assigning entity for the alcohol type and rate and (2) value in barrels (beer), gallons (wine or cider), or proof gallons (spirits)
- for spirits, an indication that the importer used an eligible flavor content credit rate when determining the actual effective tax rate and overall tax amount
- ACE code that specifies a Tax and Trade Bureau product/tranche/rate
- TTB tax rate in U.S. dollars
CBP states that at the time the entry summary is filed ACE will validate the estimated CBMA internal revenue tax amount on a line item. Line items will be rejected where the importer’s CBMA internal revenue tax estimate is incorrect.
CBP notes that users are not required to submit CBMA claims on imports of alcohol. If CBMA is not requested, the standard tax rate from the HTSUS will be used and the revenue and applicable accounting class code will be reported.
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