Letter to the Hon. Steven Mnuchin, Secretary of the Dept. of the Treasury - Schumer reveals: Just as Upstate NY economies begin to reopen & plot COVID recovery, Feds install bureaucratic & unfair rules, leaving NY's beer, wine, & distilled spirits importers shaken; Schumer demands Feds level playing field, extend relief to our domestic suppliers & importers before they tab out of NY

Letter

Dear Secretary Mnuchin:

I write to respectfully request that payments for excise taxes on imported beer, wine, and distilled spirits be delayed for 90-days in the same manner as has been extended for domestically-produced beverage alcohol, providing essential relief for U.S. businesses facing adverse economic consequences of the COVID-19 crisis.

New York beverage alcohol importers -- as well as smaller distributors, restaurants, and "mom and pop" shops across the state that rely on these imports -- have suffered significantly as a result of this pandemic. While I appreciate the action from Customs and Border Protection (CBP) to temporarily suspend the payment of excise taxes for importers, the scope and limitations of this payment deferral does not provide relief that is sufficient or equal to that provided for domestic suppliers through the Alcohol and Tobacco Tax and Trade Bureau (TTB).

On April 19, the Department of the Treasury (Treasury) and CBP announced a 90-day suspension of taxes, duties, and fees for certain beverage alcohol importers. While TTB similarly issued a 90-day deferral of all unpaid taxes due for domestic suppliers between March 1 and July 1, CBP only granted a deferral for merchandise imported in March and April.

CBP also requires importers to demonstrate "significant financial hardship" in order to qualify for the tax deferral, which the agency narrowly defines as a decrease in gross receipts of at least 40 percent compared to the same period in 2019. However, TTB does not require companies to show financial hardship to benefit from the deferral, instead extending this relief to all domestic suppliers. To remedy the discrepancy in treatment, I urge Treasury to work with CBP to amend the scope of the agency's payment deferral to align more closely with that of TTB and provide parity between U.S. importers and domestic suppliers.

U.S.-based importers of beer, wine, and spirits -- just like domestic producers -- support a robust U.S. workforce, stimulate economic growth, and invest in their local communities in New York and across the country. I therefore hope that the Department of the Treasury and CBP will expeditiously provide beverage alcohol importers the same relief available to domestic producers and ensure these U.S companies are not unfairly left behind during this crisis.

Thank you for your attention to this important matter, and I look forward to your reply.

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