CBMA information for 2019

The Craft Beer Modernization and Tax Reform Act of 2017 (CBMA) was passed as part of the Tax Cuts and Jobs Act. It amends the Internal Revenue Code with respect to the tax assessed on of certain imported and domestically produced alcoholic beverages, including beer, wine and distilled spirits.

The CBMA is unlike any other tax reduction program in that it’s controlled overseas and seemingly backwards. To receive the reduction the importer must go to the manufacturer for a certification that states the importer is entitled to the reduction on a set number of barrels/bottles, etc., for the stated year (2018 or 2019). Importers need to reach out to their manufacturers to be supplied this document in a timely manner helping to avoid any lapses.   A working template is available for the manufacturers that they can renew yearly. We recommend educating your manufactures about what they need to provide for this program. Requirements are detailed here for your use.

This certification can dramatically decrease the tax due on imports. In one case, we’ve seen importers receive $20,000 back on one importation. This Program is now being considered for 2020 calendar year. We encourage all importers to reach out to their suppliers to take advantage of this reduction and to make sure we get a yearly copy of the CBMA Assignment Certification to use when we process your cargo. Please feel free to reach out to us if you need assistance on this. The CBMA is unlike any other tax reduction program in that it’s controlled overseas and seemingly backwards. To receive the reduction the importer must go to the manufacturer for a certification that states the importer is entitled to the reduction on a set number of barrels/bottles, etc., for the stated year (2018 or 2019). Importers need to reach out to their manufacturers to be supplied this document in a timely manner helping to avoid any lapses.   A working template is available for the manufacturers that they can renew yearly. We recommend educating your manufactures about what they need to provide for this program. Requirements are detailed here for your use.