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U.S. CBP Advises Procedure to Claim IR Tax Refund Related to CBMA

On January 1, 2018, the Craft Beverage Modernization and Tax reform act of 2017 was put into effect. It reduced the amount of tax or tax credit for imports of certain alcoholic beverages for 2018 and 2019.

U.S. CBP Advises Procedure to Claim IR Tax Refund Related to CBMA

U.S. Customs and Border Protection (CBP) has now advised in a message titled ‘Procedures and Requirements: Implementation of the 14-16% Still Wine Tax Pursuant to CBM’, that they have now updated the Harmonized Tariff Schedule to accommodate the new rates so they can be claimed at the time of entry. Further, Customs has advised that the CBMA flag on the entry line is only to be used to identify a CBMA foreign producer assignment claim and not a line for which the new low tax applies, as that will happen now automatically.

Refunds due to importers for overpayment of tax are advised to be requested from the Alcohol and Tobacco Tax and Trade Bureau directly. Upon request by the claimant, CBP will provide a notice to the importer of record pursuant to Section 24.36(e). 

Further information can be obtained at CBMA@cbp.dhs.gov or on the U.S. CBP’s website.

You may also contact a DSV Customs Brokerage representative for more information. 

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