CBP Issues Final Rule to Allow Refunds Related to Recent Alcohol Excise Tax Cuts

A CBP final rule that takes effect Aug. 16 will pave the way for the agency to issue refunds of excise taxes on beer, wine and distilled spirits related to a tax cut enacted alongside broader tax legislation in late 2017 (see 1712180033). The regulatory changes give CBP the authority to refund taxes “paid prior to assigning a reduced tax rate or tax credit for alcoholic beverages, including beer, wine, and distilled spirits,” as allowed by part of the Tax Cuts and Jobs Act of 2017. “For an importer to be eligible to receive a reduced tax rate or a tax credit, the importer must be able to substantiate that the foreign producer has assigned an allotment of its reduced tax rate or tax credits to the beer, wine, or distilled spirits imported by that importer,” CBP said. Importers that paid the full excise tax at the time of entry summary filing “must request and substantiate [their] entitlement to the reduced tax rate or tax credit appropriately,” it said. CBP had initially said refunds were on hold until it could work through issues related to the tax cuts (see 1801190020), later announcing it was looking at regulatory changes that would allow it to issue refunds (see 1806270028). Comments on the interim rule are due Oct. 15.