CBP Publishes Refund of Alcohol Excise Tax IFR
U.S. Customs and Border Protection has issued an Interim Final Ruling authorizing the refund of beer, wine, and spirits excise taxes under the Craft Beverage Modernization Act of 2017 (CBMA).
In the ruling, it states that the “CBMA amended the Internal Revenue Code for two calendar years with respect to the tax treatment of alcoholic beverages, including beer, wine, and distilled spirits. For an importer to be eligible to receive a reduced tax rate or a tax credit, the importer must be able to substantiate that the foreign producer has assigned an allotment of its reduced tax rate or tax credits to the beer, wine, or distilled spirits imported by that importer. The new §24.36(d)(10) makes it clear that CBP has authority to refund the difference between the full excise taxes an importer pays at the time of entry summary filing and the CBMA’s lower effective tax rate. An importer must request and substantiate its entitlement to the reduced tax rate or tax credit appropriately.”
Additionally, the regulations specify that:
- Claim for refund of any overpayment of internal revenue tax on this entry must be executed and filed with the Director, National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau (TTB), in accordance with TTB regulations (Title 27 of the Code of Federal Regulations).
- The claim must be executed on TTB Form 5620.8.
- The date of allowance of refund or credit in respect of such tax for the purposes of section 6407, Internal Revenue Code of 1986, as amended (26 U.S.C. 6407), will be that date on which a claim is perfected and the refund is authorized for scheduling under the applicable TTB regulations.
CBP will also be accepting comments on this ruling until October 15.
© , NCBFAA, Washington D.C. Monday Morning eBriefing. Originally published [08/20/2018]. www.ncbfaa.org. Reprinted by permission.