At this moment, CBP cannot make any changes or upload the new tax rates to ACE that reflects the excise tax cuts for beer, wine, and distilled spirits that took effect January 1st; they are waiting for implementation guidance from Alcohol and Tobacco Tax and Trade Bureau (TTB). As such, importers, as well as brokers are unable to process the new and more favorable tax rates listed on TTB’s website: https://ttb.gov/tax_audit/atftaxes.shtml

Since CBP cannot update the new tax rate in ACE, some users have experienced rejections when filing entries for alcoholic beverages at the reduced rates published for 2018.

Shapiro will continue to monitor the situation and provide updates on when the reduced tax rate will be accepted by CBP, as well as the refund process for any imports that were cleared under the old, higher tax rate.

For more information related to what the new federal tax cut means for the alcohol industry, check out our recent Shap Talk article.