Yesterday, Customs & Border Protection (CBP) issued Guidance on the alcohol excise tax provisions contained in the Tax Cuts & Jobs Act (Tax Act). Key points

  1. Importers must continue to pay the full excise tax rate (not the rates reduced by the Tax Act’s lower rates or credits) upon importation.
  2. CBP and TTB are working on regulations to allow CBP to issue refunds retroactively.
  3. In anticipation of the new regulations, CBP advises importers to file protests on liquidated entries where a reduced rate or credit may apply.
  4. CBP will not process refund requests any earlier than January 15, 2019.
  5. The Guidance includes a detailed list of information an importer will need to provide in order to substantiate its eligibility to receive reduced rates and/or credits.

Please let us know if you have any questions about this development.