Procedures & Requirements for the Craft Beverage Modernization Act & Tax Reform of 2017

Customs and Border Protection released instructions for receiving reduced tax rates per the Craft Beverage Modernization Act and Tax Reform of 2017 (CBMA).

For an importer to be eligible to receive a reduced tax rate or a tax credit, importers must substantiate that the foreign producer/assigning entity has designated an allotment of its reduced tax rate or tax credits to the distilled spirits, beer, or wine imported by that importer.

The CBMA claims are to be made at the time of entry filing, along with the CBMA Spreadsheet, Controlled Group Spreadsheet, and an Assignment Certificate. More information for each document can be found here.

Templates for these three documents are posted on CBP.gov and can be accessed by clicking here. Shapiro can also provide these to you upon request.

Please note: A claim will not be considered complete until the CBMA Spreadsheet, the Controlled Group Spreadsheet, and the Assignment Certification are provided to CBP.

A Post Summary Correction (PSC) can be completed for any entries filed since January 1, 2018 that have not liquidated and for which the importer has been allocated a reduced tax rate from the supplier. A protest may also be filed for any entries that have been liquidated.

Shapiro will be happy to submit these documents on your behalf along with the entry and/or file a PSC for you for existing entries. Please contact chris@shapiro.com if you are interested.

At a later date, CBP will also issue separate procedures and requirements addressing the CBMA’s temporary changes to the tax classification of certain wines, including wines containing more than 14% but not more than 16% alcohol by volume.

Shapiro will continue to monitor the situation and provide updates as they become available.