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Prepare to meet your alcohol importers’ requests for 2023 tax benefit assignments.

Foreign producers of distilled spirits, wine, hard cider, and beer are required to register with the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) to assign U.S. federal excise tax benefits to their importers. Importers will no longer receive these benefits upon entry and must request refunds directly through the TTB’s new online system. All shipments are subject to updated requirements for 2023.

Start your registration and assignment process now to assure a smooth transition for your importers.

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Tax Benefits Provision for Non-U.S. Producers

The Craft Beverage Modernization Act (CBMA) reduces U.S. Federal Excise Tax Rates and Tax Credits for importers on certain shipments of TTB-regulated beverages. These tax benefits are no longer applied by U.S. Customs and Border Protection (CBP) at the time of entry. Instead, importers will need to request refunds from the TTB based on their foreign producers’ assignments.

If your TTB-regulated distillery, winery, or brewery is located outside of the U.S., your importers may request the tax benefits available under this new registration system.

Starting January 1, 2023, all foreign producers planning to assign tax benefits to importers must register with the TTB. You will need to submit company, ownership, and tax information along with your FDA Food Facility Registration (“FFR”) number to set up your Foreign Producer Profile. Once registered, you’ll receive a Foreign Producer TTB ID and can begin making tax benefit assignments. All shipments arriving on or after January 1, 2023, will only be allocated tax benefits through this system.

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How Registrar Corp Can Help

Meeting U.S. TTB registration requirements can take up valuable business hours—but it doesn’t have to. A leading provider of FDA compliance assistance, Registrar Corp has supported foreign producers for over 20 years. Our team of compliance experts can help you register with TTB quickly and seamlessly so that you are prepared to meet Importer requests for tax benefit assignments throughout the year.

Start the TTB registration process.

Terms and Conditions

The parties agree that Registrar Corp shall serve as Registrant’s authorized agent and representative pursuant to relevant provisions of 27 CFR Part 27, Subpart P, the Craft Beverage Modernization Act (“CBMA”) in regards to the procedures for taking advantage of the reduced tax rates and tax credits established thereunder, subject to the following terms and conditions:
  1. Registrant authorizes Agent and its employees to register its alcohol production facility (identified above or on any accompanying Registrar Corp registration form) with the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) pursuant to provisions outlined in the CBMA, and to update or renew such registration or information, during the term hereof. Additionally, Registrant authorizes Agent and its employees to provide the required registration information, edit the registration information, designate additional persons who are also authorized to act on the Registrant’s behalf, cancel designation of authorized persons, make assignments of CBMA tax benefits, receive and respond to communications from TTB (including notice of contemplated revocation), and to perform any other act permitted to be performed by authorized representatives pursuant to the CBMA. Registrant will provide Agent with all information and materials necessary or reasonably requested by Agent to fulfill Agent’s responsibilities hereunder. In the event that Registrant provides e-mail or other written communication modifying or supplementing the Legal Company Name and/or the Company Address identified above, such information may be relied upon by Agent and shall be incorporated herein by reference. Registrant warrants that the information and materials provided by Registrant will be accurate, truthful, genuine and current. Agent will forward all communications from the TTB to Registrant at the address, telephone number or email address stated above.
  2. The services performed by Agent under this agreement are limited to those permitted to be performed by an authorized agent and representative pursuant to the CBMA. Agent’s fee shall be paid in accordance with Agent’s standard fee schedule and any modifications or revisions thereto. Agent may perform additional services in its discretion at Registrant’s request for additional fees. Agent does not and will not practice law or render legal, accounting, or tax advice.
  3. Registrant shall reimburse, indemnify and hold harmless Agent from and against any and all expenses, costs and claims, including claims by third parties and nonparties, including but not limited to any governmental agencies, and related costs and attorneys’ fees, whether such claims are alleged in tort, contract or under other law, arising out of or in connection with this agreement, the transactions contemplated hereby, any claim connected to the business or operations of Registrant, any breach of any representation, warranty, authorization, or certification herein, or any breach of law or government regulation by Registrant. Registrant waives any and all claims against Agent arising out of or in connection with this agreement except for willful misconduct or gross negligence and for those waives its claims to the extent the law permits. As used in this agreement, “Agent” shall include Registrar Corp, its successors, assigns, affiliates, parents, subsidiaries, officers, directors, shareholders, agents and employees.
  4. Neither party to this agreement shall be held responsible for breach of contract caused by an act of God, insurrection, civil war, war, military operation, terrorism or local emergency, or by any act or failure to act by TTB. Time shall not be of the essence for services to be rendered by Agent. This agreement, together with the documents attached hereto and incorporated herein by reference, contains the entire agreement between the parties, and may not be modified except by written agreement executed by both parties. As used herein, the connectives “and” and “or” shall be interpreted conjunctively or disjunctively as necessary to bring within the scope of this agreement all representations, warranties and indemnifications that might otherwise be excluded.
  5. This agreement shall be construed, and the legal relations between the parties determined, in accordance with the laws of the State of New York, without giving effect to its choice of law provisions. Any action or proceeding arising out of or in connection with this agreement or the transactions contemplated hereby shall be brought in the courts of New York or the U.S. District Courts for the Southern or Eastern Districts of New York. The parties hereto consent to exercise of in personam and subject matter jurisdiction by the courts of the State of New York, and the U.S. District Courts for the Southern or Eastern Districts of New York.
  6. Agent may terminate this Agreement at any time upon giving written notice to Registrant by U.S. Mail to the address stated above or provided by Registrant for its alcohol production facility registration, or by fax to the fax number provided by Registrant for its alcohol production facility registration, or by e-mail to the e-mail address provided by Registrant for its alcohol production facility registration. Registrant may terminate this Agreement at any time by FedEx, DHL, or UPS overnight delivery service, or by fax to the address and fax number stated above, and, to be effective, must include such information as will confirm to Agent that Registrant’s alcohol production facility registration has been maintained or canceled consistent with the requirements of the CBMA. In the event of termination by either party, no part of the fees paid to Agent hereunder shall be refunded.
  7. This agreement shall expire on December 31, 2023, unless terminated earlier. Commencing January 1, 2024, this agreement will renew automatically for successive terms of one year unless terminated pursuant to the terms hereof.
  8. Registrant acknowledges that Registrar Corp is a private registration agent not affiliated with the Alcohol and Tobacco Tax and Trade Bureau. The person signing below represents and warrants that he/she is an owner, officer, or employee of the Registrant with authority to make binding commitments on behalf of the Registrant.

Frequently Asked Questions

Brewers get a reduced rate of $16 (from $18) per barrel on the first 6,000,000 barrels they send, a discount of over 11%. Wineries get a tax credit of $1 per gallon on the first 30,000 gallons, 90 cents on the next 100,000 gallons, and 53.5 cents on the third 620,000 gallons. The normal rate varies depending on the type of wine.

Hard cider producers get a tax credit of 6.2 cents on the first 30,000 gallons, 5.6 cents on the next 100,000 gallons, and 3.3 cents on the third 620,000 gallons. The normal rate is 22.6 cents per gallon. Distilleries have a reduced rate of $2.70 per gallon for the first 100,000 gallons and $13.34 per gallon for the next 22.13 million gallons. The normal rate is $13.50 per gallon.

As of January 1, 2023, U.S. Customs will no longer apply reduced U.S. federal excise taxes and tax credits when a customs entry is filed. All qualified non-U.S. producers of alcoholic beverages must register with the TTB in order to assign the tax benefits for that calendar year to their U.S. importers. U.S. importers will then need to apply for refunds based on their assigned benefits.

The TTB has launched a new online portal to manage the registration process. This new registration system allows any agent designated by the foreign producer to submit the registration, edit the registration, assign tax benefits, and add or remove users.

Registrar Corp serves as an agent to assist companies with the registration process and manage their tax benefit assignments. Foreign producers must grant Registrar Corp authorization to conduct these activities via written proof of authorization and supply it to the TTB if requested.

Registration information includes your business name, address, FDA Food Facility Registration Number (FFR), and a point of contact at the company (owner or employee). If the foreign producer has additional owners as part of a “controlled group,” any owner with 10% or more ownership must be added.

Foreign producers must register using the myTTB system. Registrar Corp will complete this process for your company and include a contact that you have designated. Registrar Corp and the company contact will be designated as “authorized users” who have the authority to receive and respond to TTB communications, including notice of contemplated revocation.

Once registered, your company contact will receive an email with your Foreign Producer TTB ID. The ID must be referenced in the customs entries which your importers intend to apply for tax benefits for. You will also receive instructions in a separate email for accessing your account at the myTTB portal.

After creating a Login.Gov account, your company contact can enter the myTTB portal with their new credentials, set up a profile, and access your foreign producer registration.

Additional authorized persons may be added as either “manager” or “user.” Managers may add or remove additional authorized persons, but users may not.

Once your registration is complete, your firm will be issued a Foreign Producer ID by the TTB. This number must be shared with your importers so they can reference it when claiming their tax refunds and credits.

Changes to registration information must be updated within 60 days. Unlike the FDA FFR, a change in ownership does not require you to cancel your registration, but any new FFR information should be submitted within the 60-day window.

Select the “Add assignments” link in the TTB portal. You will need to know your importers’ TTB basic permit numbers to start the assignment.

Select the exact tax rate or credit being assigned, the applicable calendar year, and the exact quantity to be assigned to each importer. For example, a brewer may want to assign 4 million barrels to one importer and 2 million barrels to another importer.

ONCE ASSIGNED, THE TAX BENEFIT CANNOT BE CHANGED UNLESS THE IMPORTER REJECTS IT IN THE IMPORTER PORTAL. YOU MUST BE SURE THAT THE ASSIGNMENT IS CORRECT TO AVOID DELAYS OR OTHER ISSUES.

Tax benefits are based on the calendar year. Assignments can be made starting October 1 of the year prior (e.g., assignments for 2023 could be made beginning October 1, 2022). Assignments can be made at any time during the calendar year, up until December 31st. To claim the benefit, the importer’s shipment has to have arrived in port in that calendar year.

Moving forward, your importers must also use the myTTB system to claim refunds based on the tax benefits that your company has assigned them. They’ll need your company’s Foreign Producer ID number in order to complete the claims process. This portal is still in progress and is scheduled to launch later in 2023.

With the new system, importers will be able to claim refunds on a quarterly basis. They’ll receive the difference between the full rate (paid on entry) and the amount that would have been paid if the tax liability had been calculated using the tax benefits you assigned.

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