CBP Awaits Guidance From TTB on Implementation of Excise Tax Cuts for Alcoholic Beverages
CBP is currently awaiting guidance from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before it can implement recent excise tax cuts for beer, wine and distilled spirits that took effect Jan. 1, CBP officials said on their biweekly ACE call Jan. 18. CBP still hasn’t made any updates to tax rates in the Automated Broker Interface to reflect the changes, enacted as part of broader tax legislation at the end of 2017 (see 1712220024).
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Customs brokers on the call voiced concern that they have been receiving inquiries from their importer clients as to why they haven’t been using the new, lower rate. TTB has posted on its website that the tax changes took effect with the start of the new year, but that it is “currently assessing the impact of these changes on TTB forms, regulations, and systems.” Brokers are especially in need of guidance so that they have something to show their clients in response to questions, some on the call said.
Filers are still in the dark as to whether they should use the new rate or continue using the higher rate in effect prior to Jan. 1, 2018. Though CBP did not direct filers either way on the call, an official did say that brokers that update their systems to reflect the new rate could receive rejects because CBP has not changed its own systems. Filers also need direction on how to obtain refunds for post-Jan. 1 entries filed at the old high rate, including whether they should go to CBP or TTB for refunds and whether they should request suspension of liquidation of their entries, one broker said.
CBP will continue to work with TTB to obtain direction from the tax agency, a CBP official said. In the meantime, questions, including on the issue of refunds, should be directed to TTB, he said.