Additional TTB Tax Act Guidance

On Thursday evening, February 1, the Alcohol and Tobacco Tax and Trade Bureau (TTB) released additional FAQ guidance on the alcohol excise tax provisions of the 2018 tax reform (the Tax Act).

1. Imports: Echoing a January 31 pronouncement by Customs and Border Protection, TTB has instructed importers to continue paying the full rate of excise tax until it can establish the procedures by which foreign producers can assign their tax credits to US importers. TTB promises to give importers the opportunity to seek excise tax relief (refunds) on entries made after the law went into effect, once procedures and guidance have been issued.
2. Wine: TTB interprets the Tax Act's tiered tax structure as requiring a precise determination of which removals were "first" when deciding how to divide the excise tax credits between the credits (as high as $1/gallon) available for most wines and the credits (only as high as ¢6.2/gallon) available for wine taxed at the "hard cider" rate.