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Elimination of Excise Tax Drawback for Imports


Patio29Dadio

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The Trump administration appears to be implementing a change to the allowed practice of the mostly large alcoholic beverage distributors for filing drawback claims to lower their excise tax on imports offset against their exports.

https://s3.amazonaws.com/public-inspection.federalregister.gov/2018-26793.pdf?mod=article_inline

In Treasury’s view, that is a “double drawback” because the companies effectively get to avoid excise taxes on the exports anyway and then get refunds for taxes attributable to those same exports.

This will result in about $60 million in additional federal tax revenue per year... paid by companies like Diageo.  

Quote

“Treasury needs to follow congressional intent and stop impeding a program that levels the playing field for U.S. manufacturers in the global market,” Chris Swonger, president of the Distilled Spirits Council of the U.S., said in a written statement.

Now this quote in opposition to the proposed changes seems disingenuous to me.  How does preventing large importers from offsetting the excise tax paid against their exports harm U.S. manufacturers in the global market?   I don't get this point being made by DSC.   It seems to me that this change would help level the playing field for American craft distillers as these large companies no longer get a $60 million per year tax break to import foreign beer, wine and spirits.
 

What am I missing?

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