[Federal Register Volume 89, Number 45 (Wednesday, March 6, 2024)]
[Rules and Regulations]
[Pages 15958-15959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04711]



[[Page 15958]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 24

[CBP Dec. 24-05; Docket No. USCBP-2018-0033]
RIN 1515-AE39


Refund of Alcohol Excise Tax

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document adopts as a final rule, with no changes, interim 
amendments to the U.S. Customs and Border Protection (CBP) regulations 
that were published in the Federal Register on December 30, 2022, as 
CBP Decision 22-26. Pursuant to these changes, the responsibility for 
administering refunds, reduced tax rates, and tax credits on imported 
alcohol moved from CBP to the U.S. Department of the Treasury, on 
January 1, 2023.

DATES: This rule is effective as of March 6, 2024.

FOR FURTHER INFORMATION CONTACT: Kellee Gross, Branch Chief, Trade 
Processes Branch, Office of Trade, 202-815-1699, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Conclusion
III. Statutory and Regulatory Requirements
    A. Executive Orders 13563, 12866, and 14094
    B. Regulatory Flexibility Act
    C. Paperwork Reduction Act
IV. Signing Authority
Amendments to CBP Regulations

I. Background

    Sections 13801-13808 of the Tax Cuts and Jobs Act of 2017 (Pub. L. 
115-97), signed December 22, 2017, commonly referred to as the Craft 
Beverage Modernization Act (CBMA), amended the Internal Revenue Code 
for two calendar years with respect to the tax treatment of imported 
alcohol, including beer, wine, and distilled spirits. The CBMA 
authorized reduced tax rates and tax credits for imported alcohol and 
permitted the refund of taxes paid prior to assigning a reduced tax 
rate or tax credit. On August 16, 2018, U.S. Customs and Border 
Protection (CBP) published an interim final rule, CBP Decision (CBP 
Dec.) 18-09, in the Federal Register (83 FR 40675), updating the 
language of title 19 of the Code of Federal Regulations (CFR) to 
implement the CBMA and make other technical changes to 19 CFR part 24.
    On December 19, 2019, the Further Consolidated Appropriations Act 
was signed, which extended the relevant provisions of the CBMA through 
calendar year 2020. See Public Law 116-94. On December 27, 2020, the 
Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Tax Relief Act) 
was enacted. See Public Law 116-260, Division EE, sections 106-110. The 
Tax Relief Act amended and made permanent the CBMA, and directed the 
Secretary of the Treasury to implement and administer amended 
provisions concerning imported alcohol, in coordination with CBP. This 
authority was subsequently delegated to the Alcohol and Tobacco Tax and 
Trade Bureau (TTB). The relevant provisions of the Tax Relief Act 
became effective on January 1, 2023.
    On December 30, 2022, CBP published an interim final rule, CBP Dec. 
22-26, in the Federal Register (87 FR 80442) to update the regulations 
issued in CBP Dec. 18-09, to reflect the transfer of authority for 
administration of the CBMA import refund program to TTB, and to direct 
the public to the relevant TTB regulations regarding refunds 
administered by TTB, in 27 CFR parts 27 and 70. Specifically, the 
interim final rule amended section 24.36 of title 19 of the Code of 
Federal Regulations (19 CFR 24.36). CBP Dec. 22-26 provided for the 
submission of comments from December 30, 2022, to March 2, 2023. No 
comments were received.

II. Conclusion

    CBP is adopting as final the interim rule, CBP Dec. 22-26, 
published in the Federal Register (87 FR 80442) on December 30, 2022, 
without changes.

III. Statutory and Regulatory Requirements

A. Executive Orders 13563, 12866, and 14094

    Executive Orders 13563 and 12866 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule is not a ``significant regulatory 
action,'' under section 3(f) of Executive Order 12866, as amended by 
Executive Order 14094. Accordingly, the Office of Management and Budget 
(OMB) has not reviewed this regulation.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996, 
requires an agency to prepare and make available to the public a 
regulatory flexibility analysis that describes the effect of a proposed 
rule on small entities (i.e., small businesses, small organizations, 
and small governmental jurisdictions) when the agency is required to 
publish a general notice of proposed rulemaking for a rule. Since a 
general notice of proposed rulemaking is not necessary for this final 
rule, CBP is not required to prepare a regulatory flexibility analysis 
for this final rule.

C. Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. 
Chapter 35, and its implementing regulations, 5 CFR part 1320, do not 
apply to this final rule, because this final rule does not trigger any 
new or revised recordkeeping or reporting.

IV. Signing Authority

    This final rule is being issued by CBP in accordance with section 
0.1(a)(1) of the CBP regulations (19 CFR 0.1(a)(1)) pertaining to the 
authority of the Secretary of the Treasury (or the Secretary's 
delegate) to approve regulations related to certain customs revenue 
functions. The Senior Official Performing the Duties of the 
Commissioner Troy A. Miller, having reviewed and approved this 
document, has delegated the authority to electronically sign the 
document to the Director (or Acting Director, if applicable) of the 
Regulations and Disclosure Law Division of CBP, for purposes of 
publication in the Federal Register.

Amendments to the Regulations

List of Subjects in 19 CFR Part 24

    Accounting, Claims, Harbors, Reporting and recordkeeping 
requirements, Taxes.

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
Accordingly, the interim final rule amending part 24 of title 19 of the 
Code of Federal Regulations (19 CFR part 24), which was published in 
the Federal Register at 87 FR 80442 on December

[[Page 15959]]

30, 2022 (CBP Dec. 22-26), is adopted as final, without change.

Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings, 
Office of Trade, U.S. Customs and Border Protection.
Aviva R. Aron-Dine,
Acting Assistant Secretary of the Treasury for Tax Policy.
[FR Doc. 2024-04711 Filed 3-5-24; 8:45 am]
BILLING CODE 9111-14-P