CSMS 54427266·Operational·December 20, 2022·View on csms.cbp.gov ↗

2023 Craft Beverage Modernization Act (CBMA) Procedures and Requirements

Plain-English explanation

CSMS 54427266 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin (operational), published on December 20, 2022. It carries the official CBP guidance brokers and importers must follow for the topic — "2023 Craft Beverage Modernization Act (CBMA) Procedures and Requirements". CSMS messages are the operational layer between Commerce determinations and at-the-border collections: when Commerce publishes a new rate, scope ruling, or instruction, CBP turns it into a CSMS that ACE/ACS systems and brokers act on.

Message body

Full text as published by U.S. Customs and Border Protection

CSMS # 54427266 - 2023 Craft Beverage Modernization Act (CBMA) Procedures and Requirements U.S. Customs and Border Protection sent this bulletin at 12/20/2022 01:25 PM EST Cargo Systems Messaging Service CSMS # 54427266 - 2023 Craft Beverage Modernization Act (CBMA) Procedures and Requirements This message provides guidance on the procedures and requirements of CBMA for calendar year 2023 and thereafter. Effective January 1, 2023, administration of CBMA benefits for imported merchandise entered, or withdrawn from warehouse, for consumption on and after January 1, 2023, transfers to the Department of the Treasury, specifically the Alcohol and Tobacco Tax and Trade Bureau (TTB). In practice, this means that CBMA benefits for entries with an Entry Date of January 1, 2023, and after will be reviewed and processed by TTB. U.S. Customs and Border Protection (CBP) will continue to maintain administration over CBMA claims on imports entered, or withdrawn from warehouse, for consumption on or before December 31, 2022. Filing instructions for CBMA claims covering imports entered, or withdrawn from warehouse, for consumption on or before December 31, 2022, where CBP will remain the administrator, have not changed from the 2022 procedures and requirements as described in Cargo Systems Messaging Service (CSMS) message: CSMS #50484790 . Merchandise imported into a Foreign Trade Zone (FTZ) or a Customs Bonded Warehouse between 2018 and 2022 must have a CBMA allocation from the year of importation even if the merchandise is entered, or withdrawn from warehouse, for consumption in 2023 or after. Merchandise imported in 2018 require a 2018 allocation regardless of if it is entered, or withdrawn from warehouse, for consumption in a subsequent year. Changes to CBMA Procedures effective for entries entered, or withdrawn from warehouse, for consumption on or after January 1, 2023: TTB has issued guidance, as well as a Temporary Rule and a Notice of Proposed Rule Making (NPRM) ( 87 FR 58021 and 87 FR 58043 , respectively) on CBMA importer refund claim requirements for consumption entries made on or after January 1, 2023. As explained in the Temporary Rule, beginning on January 1, 2023, importers must pay the full Internal Revenue Tax (IRT) rate at entry and must subsequently submit refund claims to TTB in order to receive CBMA tax benefits. Importers must file electronically the TTB Message Set as well as CBMA-specific data elements in ACE before filing an electronic refund claim with TTB. The Automated Commercial Environment (ACE) CBMA data elements are similar to those required by CBP in prior years, with some definitional changes. Changes to the prior definitions of the CBMA data elements are published in the Customs and Trade Automated Interface Requirements, Entry Summary Create/Update document ( CATAIR ). Filers may input the “C” indictor and the CBMA data elements at time of filing or through a Post Summary Correction (PSC). CBP and TTB have deployed updates to ACE to assist importers in complying with CBMA refund claim requirements. Foreign Producer IDs, which will now be assigned to foreign producers by TTB, will receive an ACE warning if the Foreign Producer ID entered does not match a TTB-issued ID. See announcement in CSMS #53843382 . Similarly, importers will receive an ACE warning if the TTB importer permit required in the TTB PGA Message Set is not valid at the time of entry. See announcement in CSMS # 53781960 . Concerning IRT payments, while ACE may allow for the payment of a lower IRT rate, it is the responsibility of the importer/filer to ensure the proper IRT rate is declared and paid for imported merchandise. Full IRT rates are at 26 U.S.C. 5001(a)(1) for distilled spirits (including any credit for eligible wine or flavor content under 26 U.S.C. 5010), 26 U.S.C. 5041(b) for wine, or 26 U.S.C. 5051(a)(1)(A)(ii) for beer. Entries must be filed with the correct IRT as part of the importer’s obligation to exercise reasonable care and the broker’s responsibility to demonstrate responsible supervision and control over their Customs business. The “C” indicator and seven CBMA data elements input at the entry summary line level will still be allowed in ACE but will have no effect on the declared IRT rate. For questions or additional information please contact CBP at CBMA@cbp.dhs.gov . CBP encourages trade members to continue to visit the CBMA webpages on CBP.gov and TTB.gov at: https://www.cbp.gov/trade/basic-import-export/craft-beverage-modernization-tax-reform-act-2017 https://www.ttb.gov/alcohol/cbma-import s Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page . You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com . This service is provided to you at no charge by U.S. Customs and Border Protection . Privacy Policy | GovDelivery is providing this information on behalf of U.S. Department of Homeland Security, and may not use the information for any other purposes. Powered by Privacy Policy | Cookie Statement | Help

Frequently asked questions

What is CSMS 54427266?

CSMS 54427266 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin titled "2023 Craft Beverage Modernization Act (CBMA) Procedures and Requirements". CSMS bulletins are the operational instructions CBP issues to brokers, importers, and ACE filers covering rate changes, system updates, scope guidance, and other day-to-day customs-operations changes.

When was CSMS 54427266 published?

CBP published CSMS 54427266 on December 20, 2022. The bulletin's instructions are typically operative as of the publication date unless the body specifies a different effective date.

Is the CBP CSMS the legally binding instruction?

Yes — for at-the-border filing and entry collection. CSMS messages translate Commerce's Federal Register determinations into operational CBP instructions that ACE/ACS systems and brokers execute. The Federal Register notice is the underlying legal authority; the CSMS is the operational implementation. Both should be read together when reconciling a rate or scope change.

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