Importers May Now Claim Lower Excise Tax Rate on 14-16% ABV Wines, CBP Says
Importers may now claim a lower $1.07 excise tax rate for wines with more than 14 percent, but not more than 16 percent, alcohol by volume, CBP said in a CSMS message. The agency has updated ACE to reflect the new rate, which also applies to some effervescent low alcohol by volume wines and effervescent meads, as set by the Craft Beverage Modernization and Tax Reform Act of 2017 (CBMA). The rate had previously been $1.57 per gallon. Importers claiming the lower rate should not use the CBMA entry summary line level flag available in ACE. That flag only applies to situations wherein the importer is claiming tax credits pursuant to foreign producer assignments (see 1810200001). On the other hand, the flag should be used if the importer is claiming both the $1.07 tax rate and a tax credit.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Importers that are eligible for the low $1.07 rate but already paid the higher rate previously in effect should seek refunds from the Alcohol and Tobacco Tax and Trade Bureau, CBP said. “CBP only processes and refunds CBMA claims pursuant to the assignment to an importer by a foreign producer/assigning entity of a reduced tax rate or tax rate incorporating applicable tax credits as permitted by the CBMA,” the agency said.