On September 22, 2025, TTB published a final rule making permanent the procedures originally issued as temporary regulations in 2022. These procedures implement reduced federal excise tax rates on certain limited amounts of imported distilled spirits, wine, and beer under the Craft Beverage Modernization Act (CBMA). CBMA tax benefits were first introduced in 2018 through the Tax Cuts and Jobs Act and were extended before their initial 2019 expiration. They were made permanent under the Tax Relief Act of 2020, which also transferred administration of CBMA tax benefits for imported alcohol from CBP to the Department of the Treasury, effective January 1, 2023.
The Tax Relief Act of 2020 also changed the process for claiming CBMA tax benefits. Importers now pay the full tax rate on imported alcohol products to CBP and then submit refund claims to TTB, replacing the prior process where the benefit could be applied directly to CBP tax payments in connection with the customs entry. This process has been in effect since January 1, 2023.
TTB’s temporary regulations outline procedures under which foreign distilled spirits producers, wine producers, and brewers (collectively “foreign producers”) assign CBMA tax benefits to importers, and for importers to claim refunds from TTB. Generally, the temporary regulations have required the foreign producers to register with TTB to assign CBMA tax benefits and provide the required information to complete registration and assignment. Importers must provide relevant information to claim refunds based on the foreign producer's assignment of tax benefits to them, including details submitted through CBP’s Automated Commercial Environment (ACE) as part of the entry summary as well as information submitted directly to TTB with the claim.
The temporary regulations also implement statutory limitations on CBMA tax benefits. Assignments are subject to controlled group limitations under common ownership rules, requiring foreign producers to either certify they are not under common ownership with other alcohol producers or provide ownership details. The regulations also allow TTB to revoke CBMA eligibility if a foreign producer submits material erroneous or fraudulent information.
The final rule introduces several key updates. Foreign producers now have until March 31 of the following year, rather than December 31 of the current year, to assign CBMA benefits for a calendar year. The rule also clarifies that only the foreign producer of the distilled spirits, wine, or beer can assign these tax benefits to U.S. importers. Aside from these updates, the procedures for CBMA tax benefits, which are administered through the myTTB CBMA portal, remain unchanged.
Further information is available at CBMA Import Resources
Effective September 30, 2025, TTB will no longer issue paper checks for disbursements, including tax refunds and drawback, in accordance with Executive Order 14247, which mandates the transition to electronic payments for all federal receipts and disbursements. This includes importers receiving CBMA tax benefits.
TTB has alerted importers that failure to provide banking information will delay refunds, and paper checks are no longer an option for CBMA refund claims. Importers should update their banking information in myTTB, with authorized users adding account information via the Entity Access or Entity Management screens.
Importers currently paying excise taxes via paper check or money order are encouraged to transition to electronic payments through Pay.gov or other ACH methods. Payments through Pay.gov must be submitted by 8:55 PM Eastern Time on the business day prior to the due date.