Licensed importers of alcoholic beverages may store certain alcoholic beverage products (generally spirits and sparkling wines) upon which the federal excise and duty is deferred in facilities where the federal tax revenue is safeguarded (i.e., Customs Bonded Warehouses). The owner-operator of such a facility must qualify and obtain a federal Activity 2 Customs bond to “protect the revenue.”
The application process is similar to obtaining federal and state liquor licensing in that the government requires information on the applicant, its officers, directors, shareholders, members and employees as well as the physical premises and method of operation. In addition, the government has extensive record-keeping requirements for the operation of the facility and sets the penal sum of the bond posted for the storage activity. Additionally, foreign manufacturers must first be registered by the FDA as an approved food facility and provide advanced notice to US Customs of shipment of any food products, including alcoholic beverages, destined for the U.S.
The new lower federal alcoholic beverage excise tax rates, as set forth in the Craft Beverage Modernization Act (“CBMA”), are under the governance of the Alcohol and Tobacco Tax and Trade Bureau (“TTB”). There are procedures for registering foreign suppliers, designation of US representatives for suppliers, assignment of CBMA rates and related requirements. BLF can assist on all these issues and provide explanation of the TTB procedures. The CBMA is of utmost importance to achieve the best tax rate on imported beverage alcohol product.
Buchman Law Firm, LLP assists our clients in establishing Customs bonded warehouse facilities, together with crafting appropriate guidelines for operations and to maintain proper record-keeping. The firm also assists should there be an inquiry by Customs as to storage compliance at the premises, annual bond review, Customs product entry and clearance, standard effective tax rates for flavored spirits products (see also Labeling[n1] ), requests for Harmonized Tariff Schedule classification, non-duty determinations for non-alcoholic merchandise put up for sale as consumer gift packs, and such other matters that may involve the National Import Specialist and/or the Customs team that administers and oversees alcoholic and non-alcoholic beverages.