Background

Effective January 1, 2021, CBMA (as contained in the Consolidated Appropriations Act, 2021) was extended permanently.  U.S. Customs and Border Protection (CBP) will continue to maintain administration over imports subject to CBMA through calendar year 2022. Pursuant to the Consolidated Appropriations Act, 2021, CBMA administration will transfer to the Department of the Treasury after December 31, 2022.  More information concerning the transfer of administration will be provided prior to January 1, 2023.

Under the CBMA, reduced tax rates and/or tax credits are applicable to importations of certain limited quantities of distilled spirits, beer, or wine imported from each assigning entity. Further, the allocations of the tax credits or reduced tax rates by a given controlled group to all importers may not exceed the quantities allowed by law.  As a result, 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 assigning entity has assigned an allotment of its reduced tax rate or tax credits to the distilled spirits, beer, or wine imported by that importer.

Procedures and Requirements – 2022

This communication serves to provide the procedures and requirements, with regard to importations made during the 2022 calendar year and claimed to be subject to CBMA. While the 2022 CBMA procedures and requirements for imports largely follow previous CBMA procedures and requirements, there are some changes for 2022 identified below.  For example, as with the 2021 CBMA procedures and requirements, CBMA claims filed at time of entry summary or via Post Summary Correction (PSC), importers/filers will only be required to submit the three CBMA supporting documents (described in detail below) upon CBP’s request.

However, for all CBMA claims filed via protest, importers/brokers must continue to submit the three CBMA supporting documents with the filing of the protests. 

Additionally, on April 6, 2021, CBP deployed the Automated Commercial Environment (ACE) functionality that required submission through the Automated Broker Interface (ABI), seven CBMA claim data elements when the CBMA “C” indicator is selected, either at time of entry summary or when submitting a 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.

Completing CBMA Claims:

CBP strongly encourages claims to be made at the time of entry summary by importers/filers claiming a reduced tax rate or tax rate incorporating applicable tax credits as permitted by the CBMA (hereinafter “CBMA rate”) for importations made during the 2022 calendar year. Importers/filers also have the option of filing a PSC, within the applicable PSC filing period, to make and substantiate a CBMA claim. For liquidated entries, an importer/filer is not precluded from filing a protest to submit a CBMA claim.

Indicators and Certification:

Importers/filers must use the following indicators to identify entry summary lines for which the importer has received a CBMA assignment from a foreign producer/assigning entity and for which the CBMA rate is claimed.

·  For CBMA claims at time of entry summary or PSC, importers/filers must use the CBMA flag (Product Claim Code “C”) on the entry summary line and transmit the seven CBMA claim data elements as described below in the section “CBMA Claim Submission in ACE Through ABI.”

·  For CBMA claims submitted via protest, importers/filers must select the “CBMA” protest issue.

Anyone filing a CBMA claim is submitting therewith the following certification and will be held accountable for complying with it:

The information submitted is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this submission.  I certify that I have determined and ascertained that the control group of which I am a member (including both domestic and foreign members of the control group) has not exceeded the quantitative limit applicable to the tax rate or tax credit I am claiming.

Please see the Entry Summary Create/Update CATAIR | U.S. Customs and Border Protection (cbp.gov) for details on the CBMA flag, seven CBMA claim data elements, and certification on the entry summary.

CBMA Claim Submission in ACE Through Automated Broker Interface (ABI):

On April 6, 2021, CBP deployed new ACE functionality for the submission of claims related to CBMA. This deployment requires the submission through ABI, of seven data elements when the CBMA claim indicator “C” is selected, either at time of entry summary or when submitting a 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 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.

Additional information concerning this deployment/functionality can be found in Cargo Systems Messaging Service (CSMS) message CSMS #46807598 - PROCEDURES: CBMA Claim submission in ACE through ABI (govdelivery.com).

Proper Excise Tax Rate:

While ACE may allow for the payment of a lower excise tax rate, it is the responsibility of the importer/filer to ensure the proper excise tax rate is claimed and paid for imported merchandise, and that CBMA reduced rates or credits are only claimed in conjunction with a proper and complete CBMA claim.  Entry summaries must be filed with the correct excise tax as part of the importers’ obligation to exercise reasonable care and brokers’ responsibility to demonstrate responsible supervision and control over their Customs business.  CBP has posted the CBMA Tax Rate Table for imported distilled spirits, beer, and wine on CBP.gov at CBMA IRT Tax Rate Table (Imports) | U.S. Customs and Border Protection (cbp.gov), and the ACE CBMA Tax Rate Table for the transmission of the seven CBMA claim data elements at ACE CBMA Tax Rates Table | U.S. Customs and Border Protection (cbp.gov).

CBMA Supporting Documentation

Missing, incomplete or inaccurate information on required CBMA documents may result in the liquidation or reliquidation of entry summaries at the higher non-CBMA rate and/or enforcement action.

Supporting Documentation for CBMA Claims Filed at Time of ABI Entry Summary or PSC:

In order to make a complete CBMA claim at time of entry summary or PSC, the importer/filer must, in addition to flagging each entry summary line for which a CBMA claim is asserted and input the seven CBMA claim data elements, maintain and have on file a complete and accurate CBMA Spreadsheet, Controlled Group Spreadsheet, and Assignment Certification. Importers must have these three documents, in a current and complete state, in their possession before making a CBMA claim at entry summary or PSC and must provide the required CBMA documents to CBP upon request. 

For CBMA claims filed at time of entry summary or PSC, in situations in which a “DOCS Required” message is received from ACE, the importer/filer must upload the supporting CBMA documentation along with a complete Entry Summary Package in the Document Image System (DIS).  If the request for supporting documentation is received from CBP via a CBP Form 28 Request for Information, the information requested will also be submitted via DIS.  In both situations, the CBMA documents must be linked in DIS to the entry summary number as opposed to the Importer of Record. 

For those CBMA documents requested by CBP, importers/filers have the option to submit via DIS XML or DIS email. If submitting CBMA documents via DIS email, the category in the subject line must be CBMA. Instructions for providing the CBMA supporting documentation via DIS are included in the ACE DIS Implementation Guide at ACE DIS Implementation Guide | U.S. Customs and Border Protection (cbp.gov).

Supporting Documentation for CBMA Claims Filed Via ACE Protests:

For CBMA claims filed via protest, the importer/filer must identify CBMA as the protest issue and submit the protest with the three CBMA supporting documents, i.e., the complete and accurate CBMA Spreadsheet, Controlled Group Spreadsheet, and Assignment Certification, and ensure the protest identifies and lists the seven CBMA claim data elements for each claim at protest.  

For CBMA claims filed via protest, these documents must be uploaded in the ACE protest module, and NOT via DIS. Each CBMA protest must include all three required CBMA supporting documents.

CBMA Supporting Documentation for Paper Entry Summaries and Protests

Supporting documentation for non-ABI (paper) entry summaries and paper protests not submitted via ACE should be submitted to the Entry Unit at the Port of Entry.  Once paper protests are submitted using the CBP Form 19 and a protest number is received, the importer/filer must provide the Center with the CBMA supporting documents in proper format and the associated protest number.

Templates and further procedures and requirements for the three supporting CBMA documents are posted on CBP.gov at https://www.cbp.gov/trade/program-administration/entry-summary/cbma-2017.

As stated above, CBMA supporting documents, including the CBMA Spreadsheet, Controlled Group Spreadsheet and Assignment Certification, are required to be maintained by the importer and (a) provided to CBP upon request for claims made at time of entry summary or PSC, and (b) provided to CBP for all CBMA claims filed as protests. 

CBMA Supporting Document 1: CBMA Spreadsheet

The CBMA Spreadsheet requires information from the importer and each data field is described in the template posted on CBP.gov at https://www.cbp.gov/document/template/cbma-spreadsheet.

CBMA Spreadsheets must be submitted as Excel spreadsheets.  Importers/filers must use the .xlsx extension when submitting the CBMA Spreadsheet; other formats, such as zipped files, .pdf and .msg are unacceptable.

All CBMA Spreadsheets submitted to CBP must be current and include all entry summaries for which a CBMA claim has been made for that Importer of Record number for that calendar year.   

For CBMA claims submitted at time of entry summary or PSC, upon request by CBP, importers/filers will submit the CBMA Spreadsheet via DIS, linked to the entry summary number. For CBMA claims submitted via protest, the importer/filer will upload the CBMA Spreadsheet in the Protest Module.

For CBMA documents requested by CBP on claims made at time of entry summary or PSC, importers/filers must use the following file naming convention in DIS for CBMA Spreadsheets:

CBP155-[Entry Number the CBMA Spreadsheet is Linked to]_CBMA_Spreadsheet.xlsx.

Importers/filers must replace the text in the brackets with the actual entry summary number. (Ex: CBP155-99912345678_CBMA_Spreadsheet.xlsx)

Further, importers/filers must use the “CBMA_IMPORTER_SPREADSHEET” Document Label when submitting the CBMA Spreadsheets to DIS.

As reminders:

·  Additional instructions are included on the top of the CBMA spreadsheet template on CBP.gov at https://www.cbp.gov/document/template/cbma-spreadsheet.

·  Importers/filers are to complete a separate row for each entry summary line number for which they are asserting a CBMA claim.

·  Importers/filers are NOT to remove the validations in the template posted on CBP.gov. These validations are included to help ensure that the correct information is provided. With respect to the field titled “CBMA Tax Rate or Credit Assigned and Requested by Line,” use the dropdown values to select the tax rate (for beer or distilled spirits) or credit (for wine or cider) assigned by the foreign producer/assigning entity and requested by the importer. This field is entered only after completing the “Alcohol Type” field. The rates in this column reflect only CBMA benefits, and do not include any tax reductions accrued from non-CBMA programs or other agencies.

·  For the “Quantity Claimed for CBMA Tax Rate or Credit by Line” field, enter only a numeric value in barrels (for beer), gallons (for wine or cider), or proof gallons (for spirits) for the quantity on the entry summary line number that has a CBMA assignment.

·  For the “Excise Tax Claimed to be Owed by Line for Quantity Claimed,” calculate the excise tax claimed to be owed for the quantity that has a CBMA assignment, using the assigned CBMA tax rate or credit, by line. Note, for wine, this is calculated using the following formula: ([Estimated Excise Tax Paid by Line for Quantity Claimed]) – ([Quantity Claimed for CBMA Tax Credit] x [CBMA Tax Credit Assigned]). If the result is negative, then enter “”0” for this field. When calculating Excise Tax Owed on a given importation, filers should only include tax rates or credits associated with CBMA.

·  For the “Refund” field, calculate the refund as a dollar amount, if any, by subtracting Column I from Column H.   Note: For entry summaries claiming the CBMA tax rate or credit at time of entry summary filing, the refund will be $0.00. Do not include any interest assessment in the calculated refund. The refund shall not exceed the “Estimated Excise Tax Paid by Line for Quantity Claimed.” Filers should only include tax rates or credits associated with CBMA.

All information on the CBMA Spreadsheet should be complete and accurate or risk the invalidation of the spreadsheet and associated CBMA benefits and/or enforcement action.

CBMA Supporting Document 2: Controlled Group Spreadsheet

The Controlled Group Spreadsheet requires Controlled Group information and each data field is further described in the template posted on CBP.gov at https://www.cbp.gov/document/template/cbma-controlled-group-spreadsheet. A new Controlled Group Spreadsheet is required for calendar year 2022, even if there was no change in the Controlled Group from the previous year(s) filing(s). Each importer must maintain and submit to CBP, as required, a separate Controlled Group Spreadsheet for each Controlled Group to which the importer belongs. Controlled Group Spreadsheets must identify all domestic and foreign producers who are members of the Controlled Group and the alcohol type they produce.  

Controlled Group Spreadsheets must be submitted as Excel spreadsheets.  Importers/filers must use the .xlsx extension when submitting the CBMA Spreadsheet; other formats, such as zipped files, .pdf and .msg are unacceptable.

For CBMA claims submitted at time of entry summary or PSC, upon request by CBP, importers/filers will submit the Controlled Group Spreadsheet via DIS, linked to the entry summary number. For CBMA claims submitted via protest, the importer/filer will upload the Controlled Group Spreadsheet in the Protest Module.

For CBMA documents requested by CBP on claims made at time of entry summary or PSC, importers/filers must use the following file naming convention in DIS for Controlled Group Spreadsheets:

CBP154-[Controlled_Group_Name]_[Calendar Year]_Controlled_Group_Spreadsheet.xlsx

Importers/filers must replace the text in brackets with the actual Controlled Group name (Ex: CBP154-BeerWorx_2022_Controlled_Group_Spreadsheet.xlsx)

Further, importers/filers should use the “CBMA_CONTROLLED_GROUP” DIS Document Label when submitting the Controlled Group Spreadsheets to DIS.

Importers/filers making CBMA claims must possess a Controlled Group Spreadsheet for calendar year 2022 pertaining to every entry summary line for which the importer asserts a CBMA claim, even though CBP does not require the filing of the Controlled Group Spreadsheet with every entry summary on which a CBMA claim is made. In the event that there is a change in the reported Controlled Group, or the importer receives an assignment from a new foreign producer/assigning entity, the importer will immediately update the Controlled Group Spreadsheet. NOTE: The importer must have on file a Calendar Year 2022 Controlled Group Spreadsheet for every 2022 CBMA claim.

All information on the Controlled Group Spreadsheet should be complete and accurate or risk the invalidation of the spreadsheet and associated CBMA benefits and/or enforcement action.

CBMA Supporting Document 3: CBMA Assignment Certification

The Assignment Certification provides proof that a CBMA assignment from a foreign producer/assigning entity has been made and must be issued on the letterhead of the foreign producer/assigning entity. The Assignment Certification is required to be signed by a duly authorized officer or employee of the foreign producer/assigning entity. For CBMA claims submitted at time of entry summary or PSC, upon request by CBP, importers/filers will submit the Assignment Certification via DIS, linked to the entry summary number. For CBMA claims submitted via protest, the importer/filer will upload the Assignment Certification in the Protest Module.

For CBMA documents requested by CBP on claims made at time of entry summary or PSC, importers/filers must use the following file naming convention in DIS for Assignment Certifications:

CBP156-[Assigning_Entity_Name]_[Calendar Year]_Assignment_Certification.pdf

Importers/filers must replace the text in brackets with the actual assigning entity name and calendar year. (Ex: CBP156-BeerWorx_2022_Assignment_Certification.pdf)

Further, importers/filers must use the “CBMA_PRODUCER_CERTIFICATE” DIS Document Label when submitting Assignment Certifications in DIS.

An Assignment Certification validating the assignment for every entry summary line for which the importer asserts a CBMA claim is required to be maintained by the importer and provided to CBP upon request. For each calendar year, importers must secure should submit a new Assignment Certification reflecting the year of the allocation, even if the amount of the allocation is the same from year to year.

Importers/filers should clearly denote the foreign producer/assigning entity granting the allocation, the specific rate or credit this allocation authorizes the importer to claim, the amount of importations allocated, the type of alcohol allocated, and the calendar year to which the allocation applies. The template for the Assignment Certification is posted to CBP.gov at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017/certification.

All fields in brackets on the Assignment Certification should be complete and accurate or risk the invalidation of the certification and associated CBMA benefits and/or enforcement action.

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