CBMA tax credits; how can suppliers help US importers save money

The US ranks first in global wine consumption according to the OIV state of world vine and wine sector report for 2021. It is also the world’s second largest importer of wine (13.9mhl). 

As such a popular and important market for the wine trade, how can suppliers make their wines more attractive to US importers?

One thing foreign wine suppliers can do, is help their US importer save money. It’s all made possible through USA Craft Beverage Modernization Act (CBMA) program, which offers tax relief on set quantities of wine, spirits and beer imports. The program has seen a few changes since it started in 2018, and the latest change is that the administration of CBMA will transfer from the US Customs & Border Protection (CBP) agency to the US Alcohol and Tobacco Tax and Trade Bureau (TTB) as of January 1st , 2023.

What is my role in the CBMA tax refund process?

If you’re a wine exporter to the US, or an authorized agent, you will need to register on the myTTB Foreign Producer portal. Here, you’ll be asked to provide your company’s information and identifying documents, in order to receive a Foreign Producer ID. Once done, you will be able to assign CBMA tax credits (by commodity, quantity and time period) to your nominated importer, and link your credits to their claims. It’s all managed online via the myTTB tool.

With the myTTB portal, US importers will submit their CBMA rebate claims using the Foreign Producer ID provided by their supplier(s).

What CBMA tax credit savings can be made for the US importer of my wines?

There are three tiers of CBMA tax credits on imported wine gallons 16% alcohol by volume and under. The standard tax on 30,000 wine gallons would cost $32,100 – calculated at a rate of $1.07 per wine gallon. With the Craft Beverage Modernization Act, the CBMA tax credit on 30,000 eligible gallons would cost only $2,100 – a 93% savings. For wine imports, the CBMA rate credits break down as follows:

  • First 30,000 wine gallons at $0.07= 93% savings
  • 30,001 to 130,000 wine gallons at $0.17 = 84% savings
  • 130,001 to 750,000 wine gallons at $0.535 = 50% savings

How does the CBMA claims process work?

Once CBMA assignments have been made and customs entries are flagged, importers, or their designated agents, can file claims through the importer myTTB portal. From 2023, this will be a quarterly process, and claims can be filed after each calendar quarter ends.

How can Hillebrand Gori importers file claims under the Craft Beverage Modernization Act?

Hillebrand Gori understands that the rules to provide eligibility can be complex, but we have the experience and team in place that understands compliance with the Craft Beverage Modernization Act rules.  Hillebrand Gori offers guidance and services to reduce the admin burden with CBMA claims. Contact your local office for advice here.

Helpful link: The Imports - Tax Benefits under the Craft Beverage Modernization Act (CBMA)


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