Craft Beverage Modernization Act (CBMA) – 2022 Procedures and Requirements

CSMS #50484790 - Craft Beverage Modernization Act (CBMA) – 2022 Procedures and Requirements U.S. Customs and Border Protection sent this bulletin at 12/23/2021 12:12 PM EST CSMS #50484790 - Craft Beverage Modernization Act (CBMA) – 2022 Procedures and Requirements 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 (CSMS) message CSMS #46807598 - PROCEDURES: CBMA Claim submission in ACE through ABI (