Cargo Systems Messaging Service
CSMS # 54427266 - 2023 Craft Beverage Modernization Act (CBMA) Procedures and Requirements
This message provides guidance on the procedures and requirements of CBMA for calendar year 2023 and thereafter.
Effective January 1, 2023, administration of CBMA benefits for imported merchandise entered, or withdrawn from warehouse, for consumption on and after January 1, 2023, transfers to the Department of the Treasury, specifically the Alcohol and Tobacco Tax and Trade Bureau (TTB).
In practice, this means that CBMA benefits for entries with an Entry Date of January 1, 2023, and after will be reviewed and processed by TTB. U.S. Customs and Border Protection (CBP) will continue to maintain administration over CBMA claims on imports entered, or withdrawn from warehouse, for consumption on or before December 31, 2022.
Filing instructions for CBMA claims covering imports entered, or withdrawn from warehouse, for consumption on or before December 31, 2022, where CBP will remain the administrator, have not changed from the 2022 procedures and requirements as described in Cargo Systems Messaging Service (CSMS) message: CSMS #50484790.
Merchandise imported into a Foreign Trade Zone (FTZ) or a Customs Bonded Warehouse between 2018 and 2022 must have a CBMA allocation from the year of importation even if the merchandise is entered, or withdrawn from warehouse, for consumption in 2023 or after. Merchandise imported in 2018 require a 2018 allocation regardless of if it is entered, or withdrawn from warehouse, for consumption in a subsequent year.
Changes to CBMA Procedures effective for entries entered, or withdrawn from warehouse, for consumption on or after January 1, 2023:
TTB has issued guidance, as well as a Temporary Rule and a Notice of Proposed Rule Making (NPRM) (87 FR 58021 and 87 FR 58043, respectively) on CBMA importer refund claim requirements for consumption entries made on or after January 1, 2023.
As explained in the Temporary Rule, beginning on January 1, 2023, importers must pay the full Internal Revenue Tax (IRT) rate at entry and must subsequently submit refund claims to TTB in order to receive CBMA tax benefits. Importers must file electronically the TTB Message Set as well as CBMA-specific data elements in ACE before filing an electronic refund claim with TTB. The Automated Commercial Environment (ACE) CBMA data elements are similar to those required by CBP in prior years, with some definitional changes.
Changes to the prior definitions of the CBMA data elements are published in the Customs and Trade Automated Interface Requirements, Entry Summary Create/Update document (CATAIR). Filers may input the “C” indictor and the CBMA data elements at time of filing or through a Post Summary Correction (PSC).
CBP and TTB have deployed updates to ACE to assist importers in complying with CBMA refund claim requirements. Foreign Producer IDs, which will now be assigned to foreign producers by TTB, will receive an ACE warning if the Foreign Producer ID entered does not match a TTB-issued ID. See announcement in CSMS #53843382. Similarly, importers will receive an ACE warning if the TTB importer permit required in the TTB PGA Message Set is not valid at the time of entry. See announcement in CSMS #53781960.
Concerning IRT payments, while ACE may allow for the payment of a lower IRT rate, it is the responsibility of the importer/filer to ensure the proper IRT rate is declared and paid for imported merchandise. Full IRT rates are at 26 U.S.C. 5001(a)(1) for distilled spirits (including any credit for eligible wine or flavor content under 26 U.S.C. 5010), 26 U.S.C. 5041(b) for wine, or 26 U.S.C. 5051(a)(1)(A)(ii) for beer. Entries must be filed with the correct IRT as part of the importer’s obligation to exercise reasonable care and the broker’s responsibility to demonstrate responsible supervision and control over their Customs business.
The “C” indicator and seven CBMA data elements input at the entry summary line level will still be allowed in ACE but will have no effect on the declared IRT rate.
For questions or additional information please contact CBP at CBMA@cbp.dhs.gov. CBP encourages trade members to continue to visit the CBMA webpages on CBP.gov and TTB.gov at:
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