By 2023, the Craft Beverage Modernization Act (CBMA) will take a new turn, with new restrictions, but also so many other opportunities for wine exporters.
Alison Leavitt, director of the Wine & Spirits Shippers Association, explained at ProWein how foreign operators can benefit from the unexpected financial gain provided by this law.
For exporters wishing to enter the US market, CBMA opens up interesting possibilities, Sectoral National Agricultural Cooperative Of Vineyard Products KEOSEO points out in a relevant post.
Unbeknownst to both exporters and importers, the Craft Beverage Modernization Act aims to put large entities and small entities on an equal footing by offering tax breaks to the latter. “This law, originally requested by breweries, went into effect on January 1, 2018. No one suspected it would have such a significant impact on the industry,” explained Alison Leavitt, director of Wine & Spirits Shippers Association (WSSA), which is responsible for facilitating the transportation of wines and spirits for its approximately 700 members, during the ProWein exhibition.
Until now, the law has been temporary in nature, undermining its effectiveness. American professionals, including the WSSA, pressured public authorities to make it permanent, a request that was now accepted, but with some significant modifications.
Saving thousands of dollars
From 1 January 2023, importers will have to pay the taxes due and then claim a refund. In addition, the order will no longer be under customs supervision, but will be administered by the US Alcohol and Tobacco Tax Bureau (TTB). The latter is in the process of setting up two management addresses, one for foreign suppliers and the other for importers. In particular, in order to benefit from the tax advantage, exporters must draw up a formal letter in the form of a letter of acceptance, granting the rebate to their importers. “The foreign supplier is the one who decides to whom he will allocate the largest amounts, knowing that we generally choose our main importer. Amounts are reduced depending on the volume of imported wines and spirits. For wine, for example, the discount is $ 1 per gallon (3.79 liters) for the first 30,000 gallons (113,700 liters). Savings on alcohol taxes is very important,” explains Alison Leavitt. “In one container they represent $ 36,000.”
An unknown law
The changes made for the beginning of 2023 will not change the foreseen amounts, except for the registration system in TTB. “There is a high probability that the two addresses that are being prepared will not be ready at the beginning of next year, but in any case the statements will be made from the end of the first quarter onwards.” Until then, WSSA will continue to raise awareness of the various actors in the supply chain about the existence of this tax advantage. “At least 25% of importers are not aware of this possibility. Some find it very complicated and even customs brokers do not necessarily want to bother. We have to assign the hard work to them!”
And yet, the consequences are obvious, especially in the context of price spikes. This tax cut could even encourage American entrepreneurs to relocate their branded wines to their advantage. Or the benefits could simply be shared between the two. ” Alison Leavitt sees another non-monetary benefit in this: “For producers who are aware of this, CBMA can help them penetrate the US market. It gives a clear advantage to foreign producers. Everyone should be aware of its existence, we need to convey this message loudly and clearly.”
Latest News
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing
Study Finds 4 in 10 Greeks to Slash Easter Spending
This year, hit by persistent inflation, many Greeks will be dishing out less on food, drink and gifts for Orthodox Easter on May 5
ELSTAT: Overnight Stays in Greece Up in Feb.
The provisional monthly data revealed that arrivals at tourist accommodations amounted to 773,104 and overnight stays were 1,677,685
Electric Energy: Greece’s New Sustainable Export
Moreover, a surplus of generated electricity cannot be fully absorbed by domestic grids and this excess power finds eager buyers in the form of companies entering into Power Purchase Agreements (PPAs), willing to pay a premium for clean energy
IOBE Revises Greek GDP Growth Downward, to 2.1% For 2024
Annual inflation is expected to reach 3%, up from the previous forecast of 2.8%
Last Sections of 136km E65 Highway Inaugurated on Tues.
Athens to Karditsa drive time is expected to drop to two and a half hours (under normal conditions), and some three hours from Athens to Trikala
Reuters: Greece to Repay More Bailout Loans Ahead of Maturity in 2023
The country has relied solely on international markets for its borrowing needs since a third institutional bailout ended in 2018
Ag Min. Avgenakis: Greece-China Cooperation in Research, Education in Agri-Food Sector
Greek minister tours cutting-edge hydroponics and robotics facilities at the Chinese Academy of Agricultural Sciences in Beijing
Mini Holiday Season in Greece for Upcoming Orthodox Easter
Occupancy rates reach up to 90% domestically for accommodations open ahead of peak summer season