CBMA Gains Permanence!

The Craft Beverage Modernization Act has been enacted as permanent law and was included in the Omnibus bill passed by Congress in the wee hours of the morning along with various other funding measures, tax extenders and COVID relief/stimulus package. WSSA would like to thank all members of Congress, staff at the House Ways and Means Committee, members of the JCT/Joint Committee on Taxation, along with CBP and TTB for listening to the industry and adjusting language based on input. We also want to thank the other industry associations who worked as a coalition to help make this happen, including DISCUS, NABI, ACSA, The Beer Institute, The Wine Institute, The Brewers Association, The Cider Association, Wine America, and many other individuals and groups who contributed to this effort. 

With that said, there are changes coming in the process for importers that will be implemented in two years. For now, get ready for 2021, and, for all of the importers currently participating in CBMA, get your 2021 assignment letters and controlled group spreadsheets in order. For 2021 and 2022, the process will remain as is:

• Determine your eligibility for benefits
• Obtain the required documentation to support your CBMA claim
• File the CBMA rates at time of entry or via post-entry options (PSC or Protest)

On January 1, 2023, the process will change and importers will pay the pre-CBMA tax rates at time of entry and then file a claim for the refund due with the designated agency within the Treasury Department. This has not yet been determined, and there will be a study over the next 180 days to evaluate and make recommendations as to the future process. The language of the law does include the following provisions starting in 2023:

• The filing period for refunds will be not less than quarterly (and most likely will be quarterly)
• Interest will be paid on the full amount of the claim for the filing period
• The Treasury Department has 90 days to pay the refund claim without accruing additional interest, but must pay additional interest if they take longer than 90 days
• The Treasury Department can request supporting information from the foreign producer to verify claims

WSSA will produce another webinar on CBMA in January where we will cover the basics of CBMA claims and the update on the expected new process for 2023. WSSA will again be working with other associations and the trade to provide input on the future process and will be discussing with our members to try to get to the best possible framework for 2023. In our webinar, we will also cover what has NOT been passed in the year end package, including GSP (Generalized System of Preferences).  For those of you importing wines eligible for duty free treatment under GSP, these benefits will expire at the end of the year, but will most likely be passed in early 2021 for retroactive status.

In terms of the COVID relief package, we are happy to provide a summary of the bill if needed, but this portion of the package has been widely covered by the press. 

This is much needed good news at the end of a very challenging year for everyone. For importers not yet taking advantage of CBMA, please reach out to us and we can help. For those of you already participating, this new law gives you the certainty to plan ahead with confidence that the lower excise tax rates will continue.

Happy Holidays to all!