On 20 December 2021, the U.S. Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) published guidance clarifying certain provisions of the Craft Beverage Modernization Act (CBMA) applicable to distilled spirits.

Written in the form of frequently asked questions, the guidance addresses the circumstances in which bottled distilled spirits may be transferred in bond, the addition of water to distilled spirits transferred in bond for ensuring appropriate proof during bottling, and changes effective 01 January 2022 to the type of processing activities that qualify for reduced tax rates for distilled spirits.

 

 

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