Trade Groups Largely Supportive of TTB's ITDS Proposal for Alcohol Imports

Several trade groups offered support and small tweaks in comments on a proposed rulemaking from the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) meant to support the International Trade Data System (ITDS) (see 1606200029). Commenters on the proposed changes, which would revise electronic Certificates of Label Approval (COLA) filing and other regulations, didn't lodge any major concerns within the submissions (here). "With a few 'builds,' we believe that the components set forth in this proposal will streamline the import process and facilitate electronic filings," the Distilled Spirits Council (DSC) said in its comments (here).

There's a risk of disrupting "current supply chain dynamics and efficiencies" through the TTB proposal to require the person removing distilled spirits from customs custody to actually have the COLA, the DSC said. TTB should instead use a drop-down box within ITDS "where the wholesaler could submit or indicate that he/she is in the possession of a letter from the importer authorizing the wholesaler's 'use' of the importer's COLA apropos of releasing the product from customs custody," the trade group said. That feature would be easily added and "will serve the added purpose of guarding against imported product with label differences of which the holder of the COLA is unaware," it said.

The DSC said it opposes the possibility of CBP eliminating hybrid filings that use both paper and electronic data submission. "The result of CBP's proposal would mean that, if an importer files one paper document not covered by the limited exceptions, the entire filing must be on paper," the group said. "At present, there are insufficient EDI (electronic data interchange) components to facilitate all aspects of clearing goods through customs. If CBP were to eliminate this option, TTB would be required to develop more data elements and a significant amount of time would be needed by importers to develop the functionality to file TTB data electronically." While CBP continues to see the end of hybrid filing as an eventual goal, the agency won't eliminate such filing in the near future, a CBP official said recently (see 1607270040).

Another consideration is participation within the Customs-Trade Partnership Against Terrorism program, the National Association of Beverage Importers said in its comments (here). "A component of this secure supply chain is frequent use of direct importations by beverage wholesalers as agents of authorized importers," the NABI said. "In the case of a direct import by the importer’s business partner a letter of authorization is issued to facilitate the release of cargo from CBP. These letters of authorization will also need to be incorporated into the ACE single window system to assure that there is no interruption in CBP release and transit away from the port."

There's also room to improve processing of trade samples, the NABI told TTB. "Currently TTB provides a COLA waiver after receiving an application from the importer," it said. "We believe that this process can be further streamlined and automated to perhaps accommodate an electronic stamp or authorization of the importer waiver application. This digital document can then be passed along for inclusion in the manifest and documentation needed for CBP release." The National Association of Foreign-Trade Zones suggested in its comments (here) that the "importer of record (IOR) continue to be considered the consignee for purposes of reporting U.S. Customs & Border Protection (CBP) and TTB information in ACE at the time of Type 06 FTZ entry."