Imports – Tax Benefits under the Craft Beverage Modernization Act (CBMA)

General: For beer, wine, and distilled spirits entered for consumption in the United States on or after January 1, 2023, an importer must pay the full rate of tax to CBP.

To take advantage of the CBMA reduced tax rates or tax credits, the importer must electronically file a refund claim with TTB. Importers may file refund claims after the close of each calendar quarter covering their entries in that quarter.

An importer cannot claim a refund unless the foreign producer of the imported beer, wine, or distilled spirits has assigned their CBMA tax benefits to that importer using the myTTB online system.

Customs Entry Filings: Before claiming a refund, the importer must submit information in their customs entry filing(s) identifying the products that will be subject to their claim, including:

• The commodity (i.e., beer, wine, or distilled spirits) and quantity (i.e., beer barrels, wine gallons, or proof gallons) being imported with an assigned CBMA tax benefit;
• The name and TTB Foreign Producer ID of the foreign producer assigning the CBMA tax benefits; and
• The specific reduced tax rate or tax credit assigned to the imported quantity.

This information is generally consistent with the information importers were required to submit to CBP to take advantage of CBMA tax benefits prior to 2023, except that TTB will use a new TTB-issued Foreign Producer ID number to identify foreign producers. See Craft Beverage Modernization Act (CBMA) – 2022 Procedures and Requirements, CSMS #50484790 (Dec. 23, 2021).

This information must be submitted electronically as part of the importer’s customs entry filing(s) in CBP’s Automated Commercial Environment (ACE). More detailed information on the entry filing requirements is available in the CBP and Trade Automated Interface Requirements (CATAIR) Entry Summary Create/Update on CBP’s website.

Importers intending to file CBMA importer refund claims must also file the TTB Message Set electronically in ACE.  For instructions, see ACE Filing Instructions for TTB-Regulated Commodities | U.S. Customs and Border Protection (cbp.gov).

Quarterly Refund Claims: An importer can file a quarterly refund claim based on CBMA tax benefits assigned to them after imported products have entered the United States for consumption, and after the importer has paid to CBP the tax due on those products at the full tax rate.  Importers may not file refund claims more frequently than quarterly.  That is, the calendar quarter must end before CBMA import refund claims may be filed for any consumption entries made during that quarter.

Use of myTTB Online System: Importers must submit CBMA refund claims electronically using the myTTB online system.  Importers may authorize third party agents to submit filings on their behalf within the myTTB online system.  Importers are responsible for ensuring that they (or their agents) have submitted accurate data in ACE before submitting a CBMA refund claim to TTB. Step-by-step instructions on filing claims are available in the Importer Claims User Guide.

General: Foreign producers may assign the CBMA tax benefits to one or more U.S. importers of their products.  An importer cannot take advantage of tax benefits unless the foreign producer has assigned their tax benefits to the importer. 

Quantity Limitations: By law, each foreign producer may only assign a limited quantity of tax benefits for each category of their products imported into the United States (beer, wine, or distilled spirits). Please see FAQ TB-1 for more detailed information on the quantities eligible to be assigned each calendar year.

Use of myTTB Online system:  In the past, foreign producers assigned CBMA tax benefits to one or more importers using a letterhead template published by CBP.  TTB will not accept letterhead assignments for calendar years 2023 and beyond.  For products imported on or after January 1, 2023, foreign producers must use the myTTB online system to assign CBMA tax benefits to importers.

Foreign Producer Registration: Before assigning CBMA tax benefits, a foreign producer must first register with TTB using the online myTTB system and receive a TTB Foreign Producer ID.  A foreign producer will need to provide the following information to register:

• Basic information about the business (such as business name and address) and contact information for a point of contact for the business (see FAQ FP-1);
• Their unique U.S. Food and Drug Administration (FDA) Food Facility Registration number(s) (see FAQ FP-2); and
• Ownership information, if under common ownership with other foreign or U.S. alcohol producers (see FAQ FP-1).

When a foreign producer’s TTB registration is complete, TTB will issue a TTB Foreign Producer ID and the foreign producer will be able to make assignments through the electronic myTTB system. U.S. importers will use the TTB Foreign Producer ID to identify the foreign producer when submitting information to CBP during the entry process as well as when submitting CBMA import refund claim information to TTB.

Assigning Benefits to Importers: To assign CBMA tax benefits to importers, foreign producers will need to provide the following information:

• The calendar year for which the CBMA tax benefits are being assigned; 
• The importer to whom the assignment is made, identified by TTB permit number (or TTB-assigned reference number when an importer is not required to have a TTB permit);
• The commodity (i.e. beer, wine, or distilled spirits) for which the assignment is made; 
• The specific reduced tax rate or tax credit being assigned; and 
• The quantity of proof gallons, wine gallons, or beer barrels on which tax benefits are being assigned.

The quantities of tax benefits available to be assigned may be impacted by controlled group rules in cases of common ownership among producers.  Please see FAQs TB-1 - 2 for additional information on quantity limitations.

See the ACE CBMA Tax Rates Table. Use these codes for consumption entries on or after January 1, 2023 when the filer has or reasonably expects to have a CBMA tax benefit assignment from the foreign producer and expects to file a refund claim with TTB based on the assigned lower Internal Revenue Tax (IRT) rate or credit.

See Avoiding ACE Data Errors

See the Foreign Producer Registration and Assignment System User Guide

See the Foreign Producer Registration Common Errors

Importer Claims User Guide

Alternate Claims User Guide

The new TTB procedures for obtaining CBMA tax benefits apply to merchandise entered for consumption with an Entry Date of January 1, 2023, and after.

In TTB’s foreign producer registration and assignment system, an authorized agent for the foreign producer is able to submit and/or edit the foreign producer’s registration information; assign CBMA tax benefits that the foreign producer is eligible to make under law; view all information submitted on behalf of the foreign producer in the system, including information submitted by other authorized persons; receive and respond to communications from TTB regarding the foreign producer; and may also be able to designate additional users depending on the scope of the agent’s authorization. When entering registration or assignment information into TTB’s system, an authorized agent is acting solely as the foreign producer’s agent, and is not acting in their own capacity. The foreign producer and their agents (including any agents who are also importers) are responsible for ensuring that information entered in TTB’s system is accurate and consistent with the foreign producer’s intent.

An importer may authorize an agent, including a customs broker, to act on the importer’s behalf for purposes of submitting the CBMA refund claim. Generally, TTB importers will be able to grant authorization electronically to third parties through the myTTB system. More information is available on the Getting Started in myTTB page.

In prior years, CBP required three documents that it referred to as an assignment certification, a CBMA spreadsheet, and a controlled group spreadsheet.  See, for example, CBP’s message CSMS #50484790.  These were supporting documents for CBMA claims processed under CBP procedures.  In general, those requirements applied to goods imported and entered, or withdrawn from a warehouse, for consumption on or before December 31, 2022.  

TTB’s procedures for submitting refund claims, starting in 2023, generally rely on information submitted directly through the myTTB system, and TTB does not require the three CBP documents to be created.  However, an importer, or its agent, may still be required to submit to TTB the assignment certification, CBMA spreadsheet, and controlled group spreadsheet that were required and created under the CBP procedures in prior years in certain circumstances.  For example, TTB may request these documents for claims submitted to TTB with an entry date of January 1, 2023, or later, but an import date prior to January 1, 2023.  Additional information on the requirements for claims that fall into this category is available in TTB Industry Circular 2023-1.

An importer can import the products that will be subject to a refund claim before the foreign producer registers with TTB, obtains a TTB Foreign Producer ID, and assigns tax benefits. However, because the Foreign Producer ID and assignment information will not be available to the importer at the time of entry, the importer will need to update that information in ACE through a post-summary correction prior to filing a refund claim with TTB.

An importer can file a refund claim after the imported products have been entered for consumption in the United States, and after the importer has paid to CBP the tax due on those products. 

Additionally, CBMA importer refund claims have a quarterly period.  That is, the calendar quarter must end before CBMA refund claims may be filed for any consumption entries made during that quarter.  For example, the first day that an importer can file a refund claim for products entered on May 20 is July 1 of that year, because July 1 is the first day after the end of the quarter in which the products were entered for consumption. 

Importers are required to file CBMA refund claims online through myTTB’s CBMA Importer Claims system. See TTB’s Importer Claims User Guide for step-by-step instructions on filing claims.

An importer who does not have, and is not required to obtain, an FAA Act basic permit (for example, importers who import only industrial alcohol) must request and receive a reference number from TTB.  Contact TTB’s National Resource Center here.

Foreign producers use the reference number to assign tax benefits to the importer.  Importers should enter the reference number in place of a TTB permit number when entering import data as part of the importer’s customs entry filing in CBP’s Automated Commercial Environment (ACE).  

TTB envisions that complete and valid claims will be paid shortly after they are filed. However, the myTTB CBMA Importer Claims system relies not only on accurate and complete information being submitted through that system but also on accurate and complete information being submitted electronically as part of the importer’s customs entry filing(s) in CBP’s Automated Commercial Environment (ACE). Inaccurate or incomplete data will significantly delay TTB’s processing of the claim.

Currently, the myTTB systems are not designed to send a notification to an importer when a foreign producer makes an assignment of tax benefits to them. However, importers can view all assignments made to them in the myTTB CBMA Importer Claims system.

Importers can use the following conversion factors:

Distilled spirits conversion factor: 1 proof liter = 0.264172 proof gallon

Wine conversion factor: 1 liter = 0.26417 wine gallon

Beer conversion factor: 1 liter = 0.008522 beer barrel

Users that have an account in Permits Online (PONL) should update the mailing address information in PONL. Users that do not have a PONL account (those with a TTB reference number) will need to contact TTB to correct the mailing address.

Foreign producers seeking to assign CBMA tax benefits must register online through myTTB in order to receive a TTB Foreign Producer ID and assign tax benefits to a U.S. importer.  In order to complete the registration process, the foreign producer (or their agent, see FAQ FP-4) will need to enter the following information, in the English language, through myTTB.

• Name, country of residence, and principal business address of the foreign producer;
• Name, title, country of residence, phone number, and email address of an employee or individual owner of the business who has authority to act for the business;
• If the person registering the foreign producer is different from the employee or individual owner, the name, address, phone number, and email address of the person who is completing the registration on behalf of the foreign producer; and
• U.S. Food and Drug Administration (FDA) Food Facility Registration Number(s).

Foreign producers who are under common ownership with other foreign or U.S. distilled spirits operations, wineries, or breweries also assigning CBMA tax benefits or taking advantage of CBMA tax benefits (in the case of U.S. alcohol producers) must also provide the following information for any individual or entity that owns 10 percent or more of the registering foreign producer:

• The name, address, and phone number of the individual or entity owner; and
• For entity owners, the Employer Identification Number if the entity is a U.S. entity and has an EIN or the Dun & Bradstreet Data Universal Numbering System (DUNS) number if the entity is a foreign entity and has a DUNS number.

The U.S. Food and Drug Administration (FDA) requires foreign beverage alcohol producers to obtain an FDA Food Facility Registration number for their production facilities before their products are imported into the United States. As part of the TTB registration process, foreign producers who seek to assign reduced rates will be required to submit to TTB each FDA Food Facility Registration number that they have already obtained for FDA purposes prior to the importation of their distilled spirits, wine, or beer, into the United States.

In cases where a foreign producer does not have a Food Facility Registration number because all of their products are further manufactured, processed, or bottled by another foreign facility prior to shipment to the United States, the foreign producer must obtain and submit the Food Facility Registration number of the other facility.  Alternatively, a foreign producer of industrial alcohol may confirm that it does not have an FDA Food Facility Registration because FDA does not require one for its operations. 

The foreign producer contact should be an employee or owner of the foreign producer. This individual will serve as the foreign producer point of contact for TTB and should not be the foreign producer’s agent or any other individual or entity acting on behalf of the foreign producer.

Note that this individual will be the recipient of any notices from TTB regarding the foreign producer’s registration or CBMA tax benefit assignments.

A foreign producer may have a third party agent register the foreign producer with TTB and make assignments of CBMA tax benefits to importers on its behalf. Once a registration has been created for a foreign producer, no additional registration can be completed for that foreign producer because each foreign producer may only have one registration. 

When initially registering the foreign producer, a third party agent must provide basic identifying information about themselves, including their name, address, phone number, and email address. TTB may also request additional information, if necessary, to verify this individual’s identity. Note that, as part of the registration, the agent must still provide a foreign producer contact that is an employee or owner of the foreign producer. See FAQ FP-3.

A third party agent registering a foreign producer must have authorization from the foreign producer to provide the required registration information, and perform other actions in the myTTB online system, including editing the foreign producer’s registration information, designating additional persons who are also authorized by the foreign producer to act on the foreign producer’s behalf or canceling the designations of authorized persons, and making assignments of CBMA tax benefits. The agent must maintain proof of their authority to act on behalf of the foreign producer, and be able to provide TTB a copy of the documentation authorizing them to make binding commitments on the foreign producer’s behalf. See FAQ FP-6 for additional information on acceptable proof of authority.

Foreign producers who register with TTB are required to update their registration within 60 days of any change to the information that was required as part of the original registration. In addition, every year, the myTTB system will prompt the foreign producer to either confirm or update the ownership information on file with their registration. If the foreign producer fails to confirm or update its registration information, the foreign producer will not be able to assign CBMA tax benefits until the required action is completed.

A person acting on behalf of a foreign producer in TTB’s online foreign producer registration and assignment system must maintain written proof of authorization from that foreign producer to act on that foreign producer’s behalf, and must provide that proof to TTB upon request. Proof of authorization from the foreign producer must include the following:

The proof of authorization must be signed by an individual with authority to legally bind the foreign producer under the laws of the country where the foreign producer is located. This signing individual must attest that they have authority to grant the authorization and must include their printed name, title, and date of signature on the document.

The proof of authorization must also be signed and dated by the individual receiving the authorization to act on behalf of the foreign producer.

No. Foreign producers can register themselves and make assignments without an authorized agent. If a foreign producer wants to authorize someone else to act on their behalf, the foreign producer can authorize one or more agents. See FAQ GI-2 for what an authorized agent can do on behalf of a foreign producer and FAQ FP-6 for information on proof of authorization.

One. A foreign producer can have only one registration, but can authorize multiple agents to access their registration. (See the Foreign Producer Registration and Assignment System User Guide for a description of user types and their roles and instructions on designating additional persons to act on a foreign producer’s behalf.) If a foreign producer authorizes multiple agents to act on their behalf, each agent must act under the same registration. See FAQ GI-2 for what an authorized agent can do on behalf of a foreign producer.

A foreign producer can authorize multiple importers to act as agents on their behalf. However, each foreign producer can have only one registration and all of the agents authorized to act on behalf of the foreign producer must use the same registration. See FAQ GI-2 regarding what an authorized agent can do.

This error message indicates that your registration information has been received by TTB but your registration is not successful and needs TTB review. This could be due to a number of reasons, including errors with the FDA ID provided in the registration or when there are potential duplicate registrations. TTB will review your submission and will activate it or contact you by email for additional information. If you receive this error message, you will receive a Submission ID, which cannot be used to assign tax benefits. Your Submission ID may also be found next to the foreign producer’s name when you access the registration submission in TTB’s system. You will receive a TTB Foreign Producer ID only when your registration is successful and active in myTTB.

No, there is no TTB deadline for completing foreign producer registration and getting a TTB Foreign Producer ID.  However, a foreign producer must complete its registration and obtain a Foreign Producer ID before it can assign tax benefits to U.S. importers, and – starting in 2023 – there are deadlines for making tax benefit assignments.  Foreign producers must make their assignments of tax benefits on or before December 31 of the calendar year for which the benefits apply (see FAQ TB-5). 

See FAQ TB-3 for information on when a foreign producer may assign tax benefits and FAQ NEW GI-5 for information on imports from foreign producers that have not yet obtained a Foreign Producer ID. 

Any person who registers a foreign producer must have authorization from that foreign producer and must affirm that they are authorized as part of the registration process.  If you cannot provide proof of authorization upon request, TTB will inactivate the registration.  Any tax benefit assignments made from a foreign producer account created without authorization are invalid.  See FAQ FP-6 for information on proof of authorization. 

Foreign producers who receive this type of letter should review the assignments they have made in the Foreign Producer Registration and Assignment System and coordinate with other members of the controlled group to identify the corrections that are needed so that the controlled group as a whole does not exceed the annual CBMA quantity limitations. See FAQ TB-2 for more information about how foreign producers that belong to a controlled group must ensure that their combined CBMA tax benefit assignments do not exceed the quantities allowed by law.

Once the controlled group identifies the assignments that need to be reduced, foreign producers who made those assignments must contact the importers to whom they made the assignments, and instruct those importers to return all or part of the assignment. Importers will return the assigned benefits through myTTB’s CBMA Importer Claims System. For more information on returning assignments, see FAQ TB-4.

If a foreign producer receives this type of letter but disagrees that they are in a controlled group, or disagrees that their controlled group has assigned more tax benefits than is permitted by law, the foreign producer should submit the Controlled Group Inquiry form and a TTB representative will contact the foreign producer.

For distilled spirits, reduced tax rates apply to the first 22,230,000 proof gallons of that foreign producer’s product imported into the United States during a calendar year.  These rates are, for each foreign producer, $2.70 per proof gallon on the first 100,000 proof gallons imported, and $13.34 per proof gallon on the next 22.13 million proof gallons imported into the United States.

For beer, a reduced tax rate of $16 per barrel applies to the first 6,000,000 barrels produced by that foreign producer and imported into the United States during a calendar year.

For wine, tax credits apply to the first 750,000 wine gallons of that producer’s product imported into the United States during a calendar year.  The credits are, for each foreign producer, $1 per wine gallon on the first 30,000 wine gallons of wine imported, 90 cents on the next 100,000 wine gallons imported, and 53.5 cents on the next 620,000 wine gallons imported.  The tax credits are available for all wine, except that CBMA provides for adjusted credits for imported wine eligible for the hard cider tax rate (6.2 cents, 5.6 cents, and 3.3 cents, respectively).

A detailed overview of the tax rates and CBMA tax benefits applicable to imported distilled spirits, beer, and wine is available on TTB's ACE CBMA Tax Rates Table.

A foreign producer that is under common ownership with other foreign and/or domestic producers of beer, wine, or distilled spirits are subject to “controlled group” limitations on the quantities of tax benefits that may be assigned when the common ownership creates a “controlled group” under U.S. law. The Internal Revenue Code provides that the quantity limitations for the CBMA tax benefits are applied to the entire controlled group and shall be apportioned among the members of the controlled group. (See 26 U.S.C. 5051(a)(5)(B), 5001(c)(3)(C), and 5041(c)(3).)

For example, if two foreign wineries whose wine is imported into the United States are in a controlled group with each other (e.g., each is wholly owned by the same corporation), the two wineries are treated as if they are one foreign producer for purposes of applying the quantity limitations on the CBMA tax benefits.  In other words, their combined CBMA tax benefit assignments to U.S. importers cannot exceed the quantities allowed by law. See FAQ FP-1.

The principle applies equally to two or more foreign beer producers in a controlled group and to two or more foreign distilled spirits operations that are in a controlled group.

Similarly, if a foreign beer producer whose beer is imported into the United States is in a controlled group with a U.S. beer producer, the beer produced by the foreign members of the controlled group and imported into the United States and the beer produced and removed by all domestic members of the controlled group are treated as if it were the production and removal of one producer for the purpose of applying the quantity limitations on CBMA tax benefits.  In other words, if a foreign producer and a domestic producer are part of a controlled group, the combined removals of their beer into U.S. commerce would be subject to one quantitative limit.

The principle applies equally to a foreign producer of wine that is in a controlled group with a domestic producer of wine as well as to a foreign distilled spirits operation that is in a controlled group with a domestic distiller or domestic distilled spirits processor.

A foreign producer will be able to electronically assign CBMA tax benefits through myTTB after they have completed their online registration and received a TTB Foreign Producer ID. In most cases, a Foreign Producer ID will be issued within five business days of completing the online registration. However, inaccurate or incomplete registration information may delay issuance of the Foreign Producer ID.

Under the regulations, foreign producers may assign tax benefits for a calendar year starting no earlier than October 1 of the year prior, and all assignments must be made on or before December 31 of the calendar year for which the benefits will apply. Assignments do not all need to be entered at one time. Foreign producers may assign additional CBMA tax benefits as needed until quantity limitations are reached. To illustrate, a foreign producer could assign a portion of the CBMA tax benefits for its products to be imported in calendar year 2024 on October 1, 2023. The foreign producer could continue to assign CBMA tax benefits for 2024, up to the maximum quantity allowed by law, through December 31, 2024.

Once the foreign producer has assigned CBMA tax benefits to an importer, the foreign producer cannot reduce the quantity of the assigned tax benefits or reassign the tax benefits unless the importer to whom the tax benefits were assigned first declines the assigned benefits through myTTB’s Importer Claims system. See the Importer Claims User Guide (page 28) for instructions on how to return an assignment.

The importer can decline the quantities assigned in full or in part. Once the importer has declined the assignment, the foreign producer may reassign the declined benefits through myTTB’s Foreign Producer system. All rules that apply to the timing of assignments apply to reassignments. See FAQ TB-3.

All assignments for a calendar year must be made by the end of that calendar year. For example, all assignments for 2023 must be made on or before December 31, 2023.

Each foreign producer has a limited quantity of CBMA tax benefits that they may assign to one or more importers. See FAQ TB-1 for the quantity limitations. The quantity limitation applies to the foreign producer, and it is the maximum quantity that the foreign producer can assign in total. The foreign producer can assign their total quantity of tax benefits to one importer or divide it among multiple importers. All of the foreign producer’s assignments cannot exceed the total quantity of benefits the foreign producer is allowed. The system does not allow a foreign producer to assign, in total, more than the maximum tax benefit the law allows for a foreign producer.

The quantities that a foreign producer can assign may be further limited by common ownership among producers of distilled spirits, wine, or beer. See FAQ TB-2 for an explanation of how common ownership among producers affects CBMA tax benefits. It is the foreign producer’s responsibility to determine their eligibility for CBMA tax benefits in situations where they share ownership with other producers.

During foreign producer registration, foreign producers must provide an FDA ID or certify, by checking the box shown in the image below, that they do not have an FDA ID because they only produce industrial alcohol. When a foreign producer checks this box, it indicates that they only produce industrial alcohol and the system will only allow them to make assignments for distilled spirits.

If a foreign producer has checked this box in error and limited their account to only distilled spirits assignments, the foreign producer will need to update their registration by unchecking the box shown above, and by providing the appropriate FDA ID(s) as required by TTB’s regulations. See FAQ FP-2.

No, in this situation the other company is the foreign producer, even if your brand name appears on the labels of the finished products. The other company can register with TTB and make assignments for the distilled spirits, wine, or beer that it produced, including quantities produced under contract with you.

Yes, a foreign producer may increase the quantity of an assignment, up to the limits set by law (see FAQ TB-1 for information on those limits). For step-by-step instructions on increasing an assignment quantity, see Step 4 in the Foreign Producer Registration and Assignment System User Guide.

Note: Foreign producers cannot have more than one assignment with the same importer permit number, calendar year, product category, and tax benefit tier. Instead, the foreign producer will be required to increase the existing assignment to the importer for that calendar year, product category, and tax benefit tier.

For information on how tax benefits can be reassigned after an assignment is returned in whole or in part by an importer, see FAQ TB-4.

If a foreign producer does not assign all of their calendar year tax benefits by the end of that calendar year, they will not have an opportunity in future years to assign those unused tax benefits. By law, each foreign producer may assign a limited quantity of tax benefits for each category of their products imported into the United States (beer, wine, or distilled spirits) during a calendar year. These benefits do not carry over from one calendar year to the next. TTB regulations require that assignments be submitted on or before December 31 of the calendar year for which the CBMA tax benefits are assigned.