On February 28, 2019, CBP will start reviewing and liquidating CBMA claims, in chronological order. This means that CBP will start reviewing January 2018 entries first. Once reviewed, entries will immediately liquidate, and refunds or bills-in some cases-are issued.
Pursuant to the regulation, requests may be sent to CBP. Please send requests to the Center that controls the entry. Most of the Alcohol industry aligns with the Agriculture CEE. For the Agriculture CEE, please send requests to the Agriculture Center at CEE-Agriculture@cbp.dhs.gov. Please include the entry numbers and Importer of record number with your requests.
The quantitative limits for CBMA adjusted tax rates or credits are determined per controlled group as defined by the CBMA and 26 U.S.C. 1563. For example, a controlled group may allocate to any number of importers the lower $16.00 per barrel tax rate to a maximum of 6,000,000 barrels in a given calendar year. The sum quantity of beer imported that is receiving a reduced CBMA tax rate and produced by a controlled group may not exceed 6,000,000 barrels. All quantitative limits are specified in the Craft Beverage Modernization and Tax Reform Act of 2017.
In CSMS #18-000708, CBP issued separate procedures and requirements addressing the CBMA‘s temporary changes to the tax classification of certain wines containing more than 14% but not more than 16% alcohol by volume.
U.S. Department of Treasury, Alcohol Tax and Tobacco Tax and Trade Bureau (TTB) is responsible for the collection of tax on domestically produced alcohol products. TTB has issued public guidance and FAQs on the implementation of the Tax Cuts and Jobs Act of 2017 Craft Beverage Modernization and Tax Reform which can be found on their website.
No. Per the CBMA, reduced tax rates and tax credits must be assigned by a foreign producer/assigning entity. The sum quantity of alcohol that is receiving a reduced CBMA tax rate and produced by a single assigning entity may not exceed the quantitative limits set forth in the CBMA. All quantitative limits are specified in the Craft Beverage Modernization and Tax Reform Act of 2017.
The benefit of the CBMA applies to imports of a given calendar year and can only be “taken” on the imports during that given calendar year. If the goods are imported in 2018 or 2019, CBMA was not claimed at the time of entry, and the entries have not liquidated, however, you may file a post summary correction (PSC) on unliquidated entries within the relevant timeframe (within 300 days from the date of entry and up to 15 days of the scheduled liquidation date, whichever date is earlier) regardless of whether that date falls outside of the 2018-2019 calendar year. If the entry has liquidated without the benefit of CBMA, the filer/importer may file a protest within 180 days of liquidation regardless if that date falls outside of the 2018-2019 calendar year.
Importers are strongly encouraged to utilize the CBMA flag at time of entry summary. Pursuant to CSMS message # 18-000511, importers will use the CBMA entry summary line level flag (CBMA flag) to identify imported alcohol for which the importer has received a CBMA allocation from a foreign producer/assigning entity. The CBMA flag may be transmitted at time of entry summary filing, or subsequently as a Post Summary Correction (PSC) for unliquidated entry summaries.
CBP has determined that the single taxpayer provision does not apply to foreign transactions as the taxpayer is the importer and the provision applies to producers who are taxpayers.
To be eligible for CBMA, alcoholic beverages must be imported during calendar years 2018 and 2019. In the case of FTZ, importation occurs before the goods are admitted. Only when the goods are withdrawn for consumption can a CBMA claim be made.
One CBMA Spreadsheet can have multiple entry numbers, as long as they pertain to one importer. You will use the entry number with the earliest import date for DIS labeling purposes.
The importer may receive a CBP form 29, Notice of Proposed Action indicating that CBP proposes to liquidate the claim at the higher non-CBMA rate. If CBP receives no response, the action is taken. Additionally, since entries will immediately liquidate, filers/importers may go to CBPs bulletin notice website for liquidation disposition of the CBMA entries.
For non-ABI entries (paper), please submit the Assignment Certification, CBMA Spreadsheet, and CBMA Controlled Group Spreadsheet to the CBMA mailbox at CBMA@cbp.dhs.gov.
It is possible if both controlled groups assigned the importer full CBMA allocations. Each controlled group may allocate up to 6 million barrels at the $16.00 rate. The two producers must not be part of the same controlled group, as they would exceed the 6 million barrel quantitative limit.
In order to make a complete CBMA claim, the importer must, in addition to flagging each line for which a CBMA claim is asserted, or identifying CBMA as the protest issue, provide CBP with a complete and accurate CBMA Spreadsheet, Controlled Group Spreadsheet, and Assignment Certification. Missing, incomplete or inaccurate documents may result in the liquidation of entries at the higher non-CBMA rate and/or enforcement action. Templates for these three documents are posted on CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017.
For CBMA claims submitted at time of entry or PSC, these documents must be uploaded into the Document Image System (DIS).
For CBMA claims filed via protest, these documents must be uploaded in the Automated Commercial Environment (ACE) protest module, and NOT via DIS. Each CBMA protest must include all three required CBMA supporting documents.
Supporting documentation for non-ABI (paper) entries and paper protests not submitted via ACE should be submitted to the Entry Unit at the Port of Entry. This is a CHANGE from the 2018-2019 procedures and requirements
Annual production is the total yearly quantity produced by the brewer/distiller/winery. This includes quantities sold globally, not just to U.S. importers.
The 14-16% does not require an Assignment Certification from a foreign producer in order to take the lower $1.07 rate. You may pay this lower rate at time of entry. If the higher rate was paid at the time of entry and you are seeking a refund, you must go through TTB. Please follow the guidance in CSMS # 18-000708
Spreadsheets should be in XLSX format. Please see note 6 in Appendix B, page 86 which states that XLSX is accepted in DIS for certain programs, such as CBMA.
The Assignment Certification should state the actual credit for wine allowed by CBMA, for example $.1.00, $.90 or $.535.
The wine tax credit is calculated differently from the tax rates. Calculate: IRT paid - (Quantity x credit). Refund not to exceed IRT paid. Column F, the importer should choose the correct tax credit (not rate) for the designated wine tranche. In column G, they should enter the quantity claimed on the line (in gallons). Column (I) will essentially equal (H: IRT) – (J: Refund).
To be eligible for CBMA rates or credits, a foreign producer/assigning entity must issue an Assignment Certification to the importer. An intermediary supplier who is not the producer may not make an assignment. Please refer to the TTB CBMA website for clarification on who qualifies as the producer.
Importers may belong to more than one controlled group. For every controlled group that the importer belong to, a new Controlled Group Spreadsheet is required. On the CBMA spreadsheet, you may have multiple entries on one spreadsheet as long as they pertain to one IOR, which in turn means that you could possibly have goods that were allocated by more than one foreign producer/assigning entity on one CBMA Spreadsheet.
On the Assignment Certification, the foreign producer must identify the alcoholic beverage (beer, wine or distilled spirits), quantity and which tranche or tier being allocated to you. For example, 1000 wine gallons at the $1 rate.
Report quantities out to the second decimal.
CBMA documents are to be submitted via the Document Image System (DIS) via DIS email or DIS XML. Importers will submit the CBMA and Controlled Group spreadsheets (.xlsx) and CBMA Assignment Certification (.pdf) via the Document Image System (DIS). If an entry on which the importer is making a CBMA claim has liquidated, the CBMA claim may be filed via a protest, and documents must be uploaded into the Protest Module.
No, only one Importer of Record should be listed on the assignment certification.
A complete CBMA claim must be identified by product claim number ‘C’, either at entry or Post Summary Correction (PSC), claiming the lower rate, and be accompanied by supporting documentation. Supporting documentation consists of the CBMA Spreadsheet, the Controlled Group Spreadsheet, and the Assignment Certification. A claim will not be considered complete until all three documents are on file with CBP.
To report both the assignment already taken and the assignment on the current claim under Column L, combine the amount from their last entry line claimed (i.e., Column M) with the amount being assigned on the instant line.
The production capacity would be reported in barrels (beer), wine gallons (wine) or proof gallons (spirits).
The dropdown only gives still wine choice, not sparkling wines. For all wines, the filer/importer must enter the credit amount allocated to them by the foreign producer/assigning entity and not the rate. The credit can be $1.00, $.90, or $.535. For example, natural sparkling wine for non-CBMA imports is $3.40 per wine gallon, however, with the CBMA $1.00 credit, the rate is $2.40 per wine gallon.
Follow normal procedures for submission of a paper protest by hand carrying or mailing protest to the port/center. Supporting documentation for CBMA claims (Controlled Group Spreadsheet, CBMA Spreadsheet and Assignment Certification) filed via paper protests should be emailed to CBMA@cbp.dhs.gov. The protest number must be in the subject line of the email.
For a protest including a CBMA claim, the only additional documents required (above the standard protest requirements as established in 19 CFR 174 Subpart B) are the three CBMA documents. Please be mindful that you have one opportunity to protest, so all issues (even those beyond CBMA) must be raised, following Part 174 requirements.
Unlike post summary corrections (PSC), filers/importers may include up to 9,999 entries on one protest.
That depends on the entry date and liquidation of the entries. You have until the 300th day from the date of entry and up to 15 days from the date of scheduled liquidation, whichever is earlier, to file a PSC to claim CBMA. You have 180 days from the date of liquidation to file a protest to claim CBMA.