TTB Publishes Temporary Regulations for CBMA Tax Benefits Effective January 1, 2023TTB Publishes Temporary Regulations for CBMA Tax Benefits Effective January 1, 2023
- October 12, 2022
The Craft Beverage Modernization Act (CBMA) provisions of the Internal Revenue Code (IRC) provide for reduced rates or tax credits for certain quantities of beer, wine, and distilled spirits produced in or imported into the US. A recent change in the law transferred responsibility for administering the CBMA tax benefits for imported alcohol from Customs and Border Protection (CBP) to TTB, beginning with products entered for consumption in the US on or after January 1, 2023.
Under the new CBMA import refund provisions of the IRC, importers must pay the full rate of tax to CBP on beer, wine, and distilled spirits entered for consumption in the US on or after January 1, 2023. To take advantage of the CBMA tax benefits, the importer must subsequently file a refund claim with TTB using the myTTB online system. “Importers may file refund claims after the close of each calendar quarter covering their entries in that quarter,” TTB said.
Here’s what this means, in a nutshell: Shapiro will still be able to make any and all CBMA claims, either at the time of entry or through post entry, for shipments arriving on or before December 31, 2022. Beginning January 1, 2023, the full tax amount must be paid at the time of entry, and the importer must file for a refund directly through TTB as outlined on TTB’s website.
The Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) has published a temporary rule implementing the CBMA provisions and providing procedures for foreign producers and importers. The agency is also publishing a notice of proposed rulemaking to obtain comments on the provisions in the temporary rule and on an additional regulatory provision. Comments on that notice are due by November 22, 2022. Within the notice, you will find the link to add comments.
For more information, please refer to TTB’s CBMA Imports Page. In the coming weeks, TTB will provide additional guidance and training materials related to implementation of the new CBMA import provisions, including the temporary rule requirements and how to use the myTTB online system.
As always, please reach out to [email protected] if you have any questions about the upcoming changes.