CBMA 2023 - Updates & Reminders

Last year we reported that the CBMA process effective January 1, 2023 would no longer be administered by Customs and Border Protection (CBP) and will be administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). With the change of administration comes changes to the CBMA process. WSSA has been working with TTB on the overall process, providing feedback when possible, as well as helping get the word out to importers regarding the new process. TTB has asked we send a reminder  to our members noting the changes and some key timelines on the process. Below are the summarized points and following are the detailed points provided by TTB.

Summary of key changes:

• Importers will have to pay the full federal excise tax rate at time of entry
•  Importers will have to submit quarterly refunds claims via the importer portal, importer can choose to file less frequently
• Two new modules are being created for the registration and claims process:
  
  •  Foreign Producer Module
    
    • Foreign producers must register with TTB and assign CBMA benefits to importers via the module
    • The module is expected to go live October 2022
  • Importer Claims Module
    
    • Importers must register with TTB and submit refund requests via the module
    • The module is expected to go live early 2023
• Importers must keep the CBMA required documents on file for inspection or submission to TTB as requested
• The seven CBMA data elements will still be required at time of entry
• Additional regulations will be published this summer finalizing the process

While there are still some pending details, we are working with TTB to confirm the details and hopefully everything will be covered when the regulations are published this summer. Should you have any questions or comments please reach out. As mentioned above, below is the summary provided by TTB on the new changes and status updates:

• In December 2020, Congress made the CBMA tax benefits permanent and made other changes to the law.  As a result of these changes, importers will no longer be eligible for the lower CBMA tax rates at the time of entry.  Rather, importers will be required to pay the full tax rate at entry and submit refund claims to receive the lower rates.
• These statutory changes also transferred responsibility for administering certain CBMA provisions for imported alcohol from U.S. Customs and Border Protection (CBP) to the Treasury Department after December 31, 2022.  In a June 2021 Report to Congress, Treasury stated that the Alcohol and Tobacco Tax and Trade Bureau (TTB) will be responsible for implementing these provisions on behalf of Treasury.  The statutory changes direct Treasury to determine the amount of refunds not less frequently than quarterly, and Treasury stated in its report that TTB plans to set a quarterly refund period.
• TTB is currently preparing regulations as well as two online systems to implement these provisions.  As described in the report, one system will allow foreign producers to register with TTB and assign CBMA benefits to importers; the other system will allow importers to submit refund claims to TTB. TTB plans to publish the implementing regulations in the near future, along with guidance and other informational materials.  TTB currently plans to deploy the first system module, which will allow foreign producers to register with TTB and assign CBMA benefits to importers, in October 2022, and then deploy the importer claims module in early 2023.
• After the regulations are published, TTB intends to provide guidance, webinars, and other forms of training sessions to help ensure that you are all informed about the relevant requirements and able to understand and use the new systems.

Again, please reach out with any questions or comments.