FAQ on Beer Tax: What Activities Count as 'Produced' When Determining Eligibility for Reduced Beer Tax Rates?
For purposes of taking the Craft Beverage Modernization Act (CBMA) reduced rate of tax, beer is considered to have been “produced” if it is lawfully brewed or produced at a qualified brewery premises, including beer brewed by fermentation or produced by the addition of water or other liquids during any stage of production. The entire volume of beer to which water or other liquids had been added will be considered “produced” for purposes of applying the reduced tax rates. Blending or combining two beers does not count as production for purposes of the reduced tax rate.
Beer received in bond in containers and subsequently removed subject to tax, without any production activity occurring, is not eligible for a reduced tax rate. Beer received in bond and merely bottled is also not eligible for a reduced tax rate. The eligibility for the reduced rate is also subject to controlled group and single taxpayer rules in 26 U.S.C. 5051(a)(5), which may further limit the brewer’s application of the reduced rate.
See FAQ TR-B1.
U.S. Customs and Border Protection Notices
 TTB-regulated industries may find these notices of interest.
Agency Information Collection Activities; Extension; Bonded Warehouse Proprietor's Submission (Form 300)
SOURCE: Federal Register / Vol. 90, No. 167 / Tuesday, September 2, 2025
AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security
ACTION: 60-day notice and request for comments
SUMMARY: The Department of Homeland Security, U.S. Customs and Border
Protection will be submitting an information collection request on the Bonded Warehouse Proprietor’s Submission (Form 300) to the Office of Management and Budget for review and approval in accordance with the Paperwork Reduction Act of 1995. The information collection is published in the Federal Register to obtain comments from the public and affected agencies.
DATES: Comments are encouraged and must be submitted no later than November 3, 2025, to be assured of consideration.
Notice of Implementation of the President’s Executive Order 14324, Suspending Duty-Free De Minimis Treatment for All Countries
SOURCE: Federal Register / Vol. 90, No. 167 / Tuesday, September 2, 2025
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security
ACTION: Notice
SUMMARY: In order to effectuate the President’s Executive Order 14324 of July 30, 2025 (Suspending Duty-Free De Minimis Treatment for All Countries), the Secretary of Homeland Security has determined that appropriate action is needed to ensure collection of applicable duties as well as to modify the Harmonized Tariff Schedule of the United States as set out in the Annex to this notice. Executive Order 14324 suspends the duty-free de minimis exemption otherwise authorized under section 321(a)(2)(C) of the Tariff Act of 1930, as amended, for all covered products, regardless of country of origin, valued at $800 or less, and requires such articles, except articles that are sent to the United States through the international postal network, to be entered using an appropriate entry type in the Automated Commercial Environment (ACE) by a party qualified to make entry. Executive Order 14324 also establishes a new duty rate for covered products that are sent to the United States through the international postal network.
DATES: Except for articles sent to the United States through the international postal network, as set out in the Annex to this document, the amendments outlined herein are effective for articles that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025. For articles sent to the United States through the international postal network, the duties set out in the Annex to this document are effective for such covered articles that are entered for consumption on or after 12:01 a.m. eastern daylight time on August 29, 2025.
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