TTB Finalizes Temporary Regs on Excise Taxes for Imported Alcoholic Beverages
The Department of Treasury's Alcohol and Tobacco Tax and Trade Bureau is making permanent, with two changes, temporary regulations issued in 2022 on reduced excise tax rates and tax credits for imported distilled spirits, wines, and beer (see [Ref:2209220065).
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The final rule, effective Sept. 22, "finalizes the procedures for industry members to claim limited reduced tax rates and tax credits for imported alcohol products that are entered for consumption in the United States," the notice says. "Specifically, this rule finalizes provisions in a temporary rule that outlines the process for foreign producers to assign reduced tax rates and tax credits to importers, and for importers to accept and apply the assigned tax benefits to imported products.
"This final rule clarifies that only the foreign producer who produces the product may assign the applicable tax benefits on distilled spirits, wine, or beer to U.S. importers, and extends by one calendar quarter the timeframe for those foreign producers to submit these assignments to TTB," the notice said.
The regulatory amendments implement changes made to the Internal Revenue Code by the Taxpayer Certainty and Disaster Tax Relief Act of 2020, which amended the Craft Beverage Modernization Act provisions of the Tax Cuts and Jobs Act of 2017, TTB said.