The Craft Beverage Modernization and Tax Reform Act of 2017 (CBMA) became effective January 1, 2018. CBMA provides for reduced tax rates, tax credits and adjustments of certain limited quantities of beer, wine and distilled spirits from certain foreign producers / assigning entities enumerated in the CBMA
On August 16, 2018, U.S. Customs and Border Protection (CBP) and the Department of the Treasury issued an Interim Rule to eliminate restrictions to CBP’s authority to refund the excessive duties, taxes, fees or interest.
CBP issued procedures and requirements to implement the CBMA in CSMS #18-000609 on October 16, 2018. CBP advised importers claiming a reduced tax rate or tax credit under the CBMA to do so at the time of entry via procedures outlined in that message. For entries filed since January 1, 2018, CSMS #18-000609 also provided filing instructions for tax credits due by either the protest method for liquidated entries, or a post summary correction (PSC) for unliquidated entries. To substantiate a claim for either a protest or a PSC the following completed documents are required:
- A CBMA spreadsheet in Excel.
- A CBMA Controlled Group spreadsheet in Excel.
- A CBMA Assignment Certification (must be issued on the letterhead of the foreign producer/assigning entity).
CBP will not consider a claim complete until the CBMA Spreadsheet, the Controlled Group Spreadsheet and the Assignment Certification are provided. Full details on claim filing are available here. Documentation requirements are identified here.
For importers who wish for FedEx Trade Networks to file a PSC or protest on their behalf for entries filed since January 1, 2018, please supply the request along with the substantiating documentation to your FedEx Trade Networks Transport & Brokerage account representative. Any 2018 CBMA claims that are not substantiated with the required documentation by January 31, 2019 are at risk of being liquidated without the benefit of the CBMA rate.
For more information, please contact your local FedEx Trade Networks Transport & Brokerage office, or for a complete list of office locations, visit ftn.fedex.com/us/locations.
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