On June 27, 2018, the Office of Trade issued initial guidance on the
implementation of the CBMA via CSMS message #18-000403. This message provides additional guidance on CBMA implementation
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 (as described in the CBMA). Further, the allocations of the tax credits or reduced tax rates by the assigning entity 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.
Pursuant to the interim final rule on Refund of Alcohol Excise Tax, 83 Fed. Reg. 40,675 (August 16, 2018), CBP and Treasury amended 19 CFR 24.36, authorizing CBP to issue refunds owed on entries where the importer received a foreign producer allocation or assignment pursuant to the CBMA when appropriate.
On September 1, 2018, CBP plans to deploy in the Automated Commercial Environment (ACE) an entry summary line level flag to identify imported alcohol for which the importer has received a CBMA allocation from the foreign producer/assigning entity.
Information on this entry summary flag was published in the Entry Summary Create/Update chapter of the Customs and Trade Automated Interface Requirements (CATAIR) on August 30, 2018.
- The CBMA flag will utilize the existing ‘Product Claim Code’ field in the Line Item Header Grouping (40-record) of the Entry Summary submission, and can be submitted using the value ‘C’ (see the Entry Summary Create/Update CATAIR chapter for additional information).
- This CBMA flag may be transmitted at time of entry summary filing, or subsequently as a Post Summary Correction. At this time, the entry summary line level flag will indicate merchandise for which a claim will be filed subject to the CBMA.
CBP will issue additional guidance on information to be filed substantiating CBMA claims. Upon issuance of this additional guidance, importers will be encouraged to file the claim information simultaneously with the transmission of the entry summary flag.
CBP strongly encourages the use of the CBMA entry summary line flag over the use of protests for identifying merchandise for which a CBMA allocation has been received from the foreign producer/assigning entity. Protests should only be used for CBMA claims if entries for which a CBMA allocation has been received have liquidated.
If you have any questions or require additional information, please contact CBMA@cbp.dhs.gov.