The Distilled Spirits Council has criticized the U.S. Treasury Department for rejecting the excise tax drawback on spirits, beer and wine that are produced in America for export.
The U.S. Treasury Department and U.S. Customs and Border Protection (CBP) last week issued a final rule on Modernized Drawback that prohibited the excise tax drawback. DISCUS believes that this contradicts the Congressional intent contained in the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) to simplify drawback claims processing.
TFTEA was supposed to allow companies to recoup taxes, duties and fees on imported products after exporting like products. Instead, DISCUS says that the treasury has thwarted the intent of Congress to promote exports through this new rule by limiting the excise duty drawback.
“Congress wanted to encourage production in the United States with duty drawback, which was designed to incentivize U.S. manufacturers to export,” says DISCUS President and CEO Chris Swonger.
“At a time when retaliatory tariffs are impacting American business, small and large, this program could provide some relief, simplification, and add to our competitiveness,” he adds. “Treasury needs to follow Congressional intent and stop impeding a program that levels the playing field for U.S. manufacturers in the global market.”