On December 30, 2020, U.S. Customs and Border Protection (CBP) issued Cargo Systems Messaging Service (CSMS) #45315560, titled “Craft Beverage Modernization Act (CBMA) – Procedures and Requirements 2021.” The CBMA allows for reduced tax rates or credits on certain importations of distilled spirits, beer or wine in limited quantities. The CSMS describes the procedures and requirements for importations subject to the CBMA made during the 2021 calendar year. The CSMS is available at https://content.govdelivery.com/bulletins/gd/USDHSCBP-2b375e8?wgt_ref=USDHSCBP_WIDGET_2?utm_source=google&utm_medium=google&utm_term=(not%20provided)&utm_content=undefined&utm_campaign=(not%20set)&gclid=undefined&dclid=undefined&GAID=1035833621.1609253237.
The CBMA Tax Rate Table for imported distilled spirits, beer, and wine is available at https://www.cbp.gov/trade/program-administration/entry-summary/cbma-2017/cbma-irt-tax-rate-table-imports.
CBP states that the 2021 procedures and requirements largely follow those of 2020. However, the 2021 CBMA revisions include some changes, and CBP notes that when the 2021 Updates to the Automated Commercial Environment (ACE) are deployed, CBP expects to further update the 2021 CBMA procedures and requirements.
I. Completing CBMA Claims
a. On Entry
Importers and other filers are encouraged to claim the CBMA reduced tax rate or credits at the time of entry. To do so, use the CBMA flag (Product Claim Code “C”) on the entry summary line.
Filers must maintain and have on file three supporting documents: (1) a complete and accurate CBMA Spreadsheet CBP155, (2) Controlled Group Spreadsheet CBP154, and (3) Assignment Certification CBP156. Missing, incomplete or inaccurate information on required CBMA documents may result in the liquidation or reliquidation of entries at the higher non-CBMA rate and/or enforcement action
Although required to have these three CBMA supporting documents before making a CBMA claim, filers will only be required to submit the three documents upon CBP’s request for CBMA claims that are filed at the time of entry. Where filers receive a “DOCS required” message from ACE, they must upload the supporting documentation and a complete Entry Summary Package in the Document Image System (DIS), linked to the entry number. Where filers receive a request for supporting documentation through a CBP Form 28, the documents in DIS must be linked to the entry number and not to the Importer of Record. Filers may submit these documents via DIS XML or DIS email.
Additionally, all filings of CBMA claims must be submitted with the following certification:
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.
Filers may also make a CBMA claim by filing a Post Summary Correction (PSC) or by filing a protest for liquidated entries. For CBMA claims submitted via protest, importers/filers must select the “CBMA” protest issue in the ACE electronic protest module.
For PSCs, filers must submit the three supporting documents for each CBMA claim upon request by CBP via DIS.
For protests, filers must submit the three supporting documents for each CBMA claim with the claim without request by CBP. These documents must uploaded in the protest module in ACE.
For paper entries and protests, the three supporting documents should be submitted to the Entry Unit at the Port of entry. Filers must provide the Center with the paper documents and protest number after submitting the CBP Form 19 and receiving the protest number.
II. Format of Supporting Documentation
The CBMA Spreadsheets must be submitted as Excel spreadsheets in .xlsx extension format. For document requests on CBMA claims made at time of entry or PSC, filers must use the following file name convention in DIS: CBP155-[Entry Number the CBMA Spreadsheet is Linked to]_CBMA_Spreadsheet.xlsx. Filers must use the “CBMA_IMPORTER_SPREADSHEET” Document Label when submitting the CBMA Spreadsheets to DIS. The information required in the CBMA Spreadsheet is detailed in the CBP template available at https://www.cbp.gov/document/template/cbma-spreadsheet.
CBP requires that the importer have on file a new 2021 Controlled Group Spreadsheet for every 2021 CBMA claim, even where there have been no changes since the 2020 filing. A separate spreadsheet must be maintained for each Controlled Group to which the importer belongs. The Controlled Group Spreadsheet must be submitted as Excel spreadsheets in .xlsx extension format. For document requests on CBMA claims made at time of entry or PSC, filers must use the following file name convention in DIS: CBP154-[Controlled_Group_Name]_[Calendar Year]_Controlled_Group_Spreadsheet.xlsx. Filers must use the “CBMA_CONTROLLED_GROUP” Document Label when submitting the Controlled Group Spreadsheets to DIS. The information required in the Controlled Group Spreadsheet is detailed in the CBP template available at https://www.cbp.gov/document/template/cbma-controlled-group-spreadsheet.
The Assignment Certification must be issued on the letterhead of the foreign producer/assigning entity and signed by a duly authorized employee or officer. The foreign producer/assigning entity, specific rate or credit authorized, amount of importations allocated, type of alcohol allocated, and applicable calendar year should be clearly identified. New Assignment Certifications must be submitted each year of the allocation, even if there has been no change from the previous year. For document requests on CBMA claims made at the time of entry or PSC, filers must use the following file name convention in DIS: CBP156-[Assigning_Entity_Name]_[Calendar Year]_Assignment_Certification.pdf. Filers must use the “CBMA_PRODUCER_CERTIFICATE” DIS Document Label when submitting Assignment Certifications in DIS. The information required in the Assignment Certification is detailed in the CBP template available at https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017/certification.
The templates and procedures regarding these three documents are available at https://www.cbp.gov/trade/program-administration/entry-summary/cbma-2017.
Our office is available to answer any additional questions regarding the CBMA procedures.