ACE Enhancements for the Craft Beverage Modernization Act

Owned by Jackeline Ashley Lara
Last updated: Sep 06, 2022
2 min read

Last Updated: March 16, 2021

On April 6, 2021, U.S. Customs and Border Protection deployed the Craft Beverage Modernization Act (CBMA) enhancements to ACE. CBMA allows for reduced rates or credits on 92 tariff numbers under Chapter 22 of the Harmonized Tariff Schedule. As part of the deployment, filers must transmits even required data elements in ACE for CBMA claims using the Automated Broker Interface (ABI). In addition, ACE will validate tax amounts, and users will be able to review these data elements in ACE Reports.

What will change for trade users?

  • Trade users will be required to provide seven (7) CBMA related data elements at the Entry Summary line-item level for eligible alcohol articles (i.e. the CBMA Product Detail)

  1. Controlled Group Name

    1. The name that will be used for purposes of CBMA to identify this controlled group (e.g., parent company name).

  2. Foreign Producer Identifier

    1. Identifying code for the foreign producer/assigning entity named as Foreign Producer.

  3. Foreign Producer Name

    1. Name of the foreign producer/assigning entity as it appears on the assignment certification or the Food and Drug Administration (FDA)Manufacturer Name as specified on the FDA Message Set.

  4. Allocation Quantity

    1. The total annual assignment to the Importer by the foreign producer/assigning entity for the alcohol type and rate.

    2. Provide the value in barrels (for beer), gallons (for wine or cider), or proof gallons (for spirits).

  5. Flavor Content Credit Indicator

    1. When the article is spirits, this is an indication that the Importer used an eligible flavor content credit rate when determining the actual effective tax rate and the overall tax amount.

  6. CBMA Rate Designation Code

    1. An ACE code that specifies a Tax and Trade Bureau (TTB) product/tranche/rate.

  7. TTB Tax Rate

    1. The TTB Tax Rate in U.S. Dollar. This data element is used as confirmation of the TTB product/tranche/rate selected.

  • ACE will maintain TTB’s CBMA tax rates

    • At Entry Summary filing time, ACE will validate the estimated CBMA Internal Revenue Tax (IRT) amount on a line item.

    • Line items will be rejected where the Importer’s CBMA IRT estimate is incorrect.

Users are not required to submit a CBMA claim on an article of alcohol. If CBMA is not requested, the standard tax rate (if applicable) from the Harmonized Tariff Schedule(HTS) is to be used and the revenue and applicable Accounting Class Code is to be reported.

If you are looking for instructions on how to fill CBMA on IMEXNet, please visit the following link: IMEXNet CBMA Filing

What additional resources are available?

Whom do I contact if I have issues?