Cargo Systems Messaging Service
CSMS #46807598 - PROCEDURES: CBMA Claim submission in ACE through ABI
The purpose of this message is to provide guidance to the trade community 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 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 ACE new functionality for the submission of claims related to CBMA. This deployment will take place at 7:00am ET on April 6, 2021.
With this deployment, CBP will require the submission through ABI, of seven data elements when the CBMA claim indicator “C” is selected, either at time of entry or when submitting a Post Summary Correction (PSC). These data elements are required 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.
The data elements will need to be input on the entry line in the Importers Additional Declaration field(s) (54 Record). 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.
CBP published an updated Entry Summary Create/Update chapter of the 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 included on the CBMA Spreadsheet that the Importer of Record must maintain and submit to CBP upon request.
The Foreign Producer Identifier is constructed through information contained on the CBMA Spreadsheet and constructed through a formula described in the CATAIR and repeated here
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.
The Flavor Content Credit Indicator, a Yes or No field, indicates if the importer is or is not claiming a credit for the flavor content of a distilled spirit. If an importer is filing a reduced tax rate based on a flavor content credit but is NOT making a CBMA claim, the Flavor Content Credit Indicator should NOT be selected in the Additional Importers Declaration field (54 Record). The Flavor Content Credit Indicator field is only used for CBMA claims at this time.
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 based on the alcohol type and the CBMA tranche and corresponding reduced tax rate or credit. The (CBMA Rate Designation Code and TTB Tax Rate pair will need to match to be accepted in ACE.
ADDITONAL CBMA ENHANCEMENT INFORMATION
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 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 before the PSC can be accepted, regardless of the issue being corrected by the PSC.
The new functionality will require separate entry summary lines for multiple CBMA rates and for non-CBMA rates. An importer can only claim a single CBMA tranche per entry summary line. For example, if the 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 summary lines to submit the CBMA claim on the first 100,000 gallons.
PROTESTS
When submitting a protest to claim CBMA, the three supporting CBMA documents should be submitted at time of protest filing as per established guidance. The filer should also ensure the seven data elements are provided and clearly cited for their applicability to the claim or claims.
If you have any questions or require additional information, please contact CBMA@cbp.dhs.gov. CBP encourages trade members to continue to visit the CBMA page on CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017.
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