TTB Makes CBMA Tax Benefits Permanent

On September 29, 2025, the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Department of the Treasury issued the final rule making permanent — with two changes — the temporary provisions published in the Federal Register on September 23, 2022, concerning reduced excise tax rates and tax credits for imported distilled spirits, wine, and beer established under the Craft Beverage Modernization Act (CBMA), as amended.

• The final rule permanently establishes the procedures allowing foreign producers to assign reduced excise tax rates and tax credits to U.S. importers, and for importers to accept and apply those tax benefits to imported products.
• Foreign producers will now have an additional calendar quarter to submit to the TTB their CBMA tax benefit assignments for a given calendar year (extending the deadline from December 31 to March 31 of the following year). The rule also clarifies that only the foreign producer who actually manufactures the distilled spirit, wine, or beer product may assign the corresponding tax benefits to U.S. importers.

Photo credit: Freepik

Source: Alcohol and Tobacco Tax and Trade Bureau