CBP ACE Messaging Service

CAMS #46807789 - PROCEDURES: CBMA Claim submission in ACE through ABI

The purpose of this message is to provide guidance to CBP on the submission of Craft Beverage Modernization Act (CBMA) claims in the Automated Commercial Environment (ACE) through Automated Broker Interface (ABI) CBMA enhancements.

BACKGROUND

On January 1, 2018 the Craft Beverage Modernization and Tax Act (CBMA) entered into force allowing for the payment of lower Internal Revenue Tax (IRT), through reduced tax rates or tax credits for certain alcoholic beverages imported into the United States.

ACE ENHANCEMENTS

U.S. Customs and Border Protection (CBP) is deploying to the Automated Commercial Environment (ACE) new functionality for the submission of claims related to the Craft Beverage Modernization and Tax Act (CBMA). This deployment will take place at 7:00am ET on April 6, 2021.

CBP will be collecting, through the Automated Broker Interface (ABI), seven required data elements when the CBMA claim indicator “C” is selected, either at time of entry or when submitting a Post Summary Correction (PSC). The data elements will need to be input on an entry line in the Importers Additional Declaration field(s) (54 Record) by the filer. The seven data elements are:

(1)Controlled Group Name,

(2)Foreign Producer Identifier,

(3)Foreign Producer Name,

(4)Allocation Quantity,

(5)Flavor Content Credit Indicator,

(6)CBMA Rate Designation Code,

(7)TTB Tax Rate.

These data elements are required to be input by the filer when a CBMA “C” indictor is selected to signify that the filer is claiming a lower Internal Revenue Tax (IRT) rate or credit under the CBMA at time of entry or through a PSC.

CBP published an updated CBP and Trade Automated Interface Requirements (CATAIR) document with additional technical information regarding the submission and details of the seven data elements.

The data elements Controlled Group Name, Foreign Producer Name, and Allocation Quantity are data elements currently on the CBMA Spreadsheet that the Importer of Record must maintain and submit to CBP when appropriate. The Foreign Producer Identifier is constructed through information contained on the CBMA Spreadsheet and constructed through a formula described in the CATAIR.

The following is the definition and formula for Foreign Producer Identifier from the CATAIR.

Definition: The identifying code of the foreign producer / assigning entity named as Foreign Producer.

Formula: The code can be up to 14 characters in length and should be comprised of the following:

• The 1st character of the alcohol type (Beer=B, Wine or Cider=W, Spirits=S); followed by:
• Up to the 1st 6 characters of the Foreign Producer Name (eliminating any space value); followed by:
• Up to the 1st 5 characters of the Foreign Producer's international postal code; followed by:
• The 2-digit calendar year of the claim.

When processing a CBMA claim that does not include the Foreign Producer Identifier Center personnel should request the identifier from the IOR rather than attempt to formulate the identifier themselves.

The Flavor Content Credit Indicator, a Yes or No, indicates if the importer is or is not claiming a credit for the flavor content of a distilled spirit. If an importer is claiming a flavor content credit but NOT claiming a lower rate under the CBMA the Flavor Content Credit Indicator should NOT be selected in the Additional Importers Declaration field (54 Record).

The CBMA Rate Designation Code and TTB Tax Rate are found on the ACE CBMA Tax Rate Table on CBP.gov at the following link: https://www.cbp.gov/trade/program-administration/entry-summary/cbma-2017/ace-cbma-tax-rates-table. The CBMA Rate Designation Code and the TTB Tax Rate will need to be determined by the filer based on the type of alcohol claimed and that alcohol type’s tranche level of a reduced rate or credit and input in the in the Importers Additional Declaration field(s) (54 Record). The CBMA Rate Designation Code and TTB Tax Rate pair will need to match to be accepted in ACE.

ADDITONAL CBMA ENHANCEMENT INFORMATION

ACE does not require CBP users to input the seven data elements when the “C” indicator is selected. However, when the trade community selects the “C” indicator ACE will require the trade community to input the seven data elements. The additional seven data elements cannot be updated through Mass Processing.

After April 6, 2021 the filing of a PSC for CBMA benefits will require the additional seven data elements listed above to be transmitted in ACE. Also, if a PSC is submitted for any entry where CBMA was claimed before April 6, 2021, where only a “C” indicator is present, ACE will require the additional seven data elements to be submitted by the filer before the PSC can be accepted, regardless of the issue being corrected by the PSC.

The new functionality will also require line breakouts for mixed entry lines, where a CBMA lower rate and a non-CBMA rate are combined on a single line. An entry line claiming CBMA benefits, a lower IRT rate or credit, can only claim a single tranche level benefit per entry line. If an importer has an allocation for 100,000 gallons of beer but is importing 200,000 gallons, the second 100,000 gallons would be ineligible for the reduced CBMA rate, and the merchandise must be broken out into two entry lines to submit the claim on the first 100,000 gallons. 

PROTESTS

When submitting a protest to claim CBMA benefits the three CBMA documents should be submitted as per established procedure. The filer also should ensure the seven data elements are provided and clearly cited for their applicability to the claim or claims.

After the approval of a claim or claims on a protest, Center personnel are only required to edit the entry line to reflect the approved CBMA claim with the “C” indicator. Centers are encouraged to input the seven data elements to the extent possible.

If you have any questions or require additional information, please contact CBMA@cbp.dhs.gov. Additional information can be found on the CBMA page on CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017.