Export spirits to Ontario, Canada

[brokenarrow1560]

I made a general post yesterday and think I should have posted here. I have an opportunity to export my spirits to Ontario. Its been in the works for a while. Meeting with the LCBO (Liquor Control Board Ontario) in January. I have questions regarding filing monthly reports, ie: production, processing, storage. I will make the spirits as usual, case and label, and ready for shipment. Am I to assume there will be no changes to my monthly reporting until I file for quarterly payment of excise taxes. These shipments to neighboring Canada are exempt from taxes, however I am having difficulty digesting the information in TTB Industry Circulars from 2000 and 2004. I have tried calling the Natl Revenue Center and the Regulations and Procedures Division with no answer. Any assistance would be appreciated.

 

[FIVE x 5 Consulting]

Hi!  Great question!

Your exports to Canada would indeed be withdrawn without payment of tax. The PGs that you remove for export would be reported on Line 36 of the Processing report (instead of Line 33 for domestic removals).  So, there would actually be a change in your monthly operational reporting.

After the end of the quarter, you would simply exclude Line 36 PGs from your excise tax computation/return.

Additionally, you must file TTB F5100.11 as a notice and retain evidence of exportation for 6 years in order to substantiate your relief from excise tax liability.

Once your products have been exported, you must also send in export documentation to TTB (acceptable forms are listed in the Industry Circular 2000-4 you referenced previously).

All of these items are non-optional.

Here is some guidance from TTB: https://www.ttb.gov/itd/exporting-distilled-spirits-untaxpaid

TTB "International Affairs Division" has good people who can answer your questions.  Contact them and confirm what I've told you - its always best to get it from the horse's mouth, so to speak: https://www.ttb.gov/contact-iad

As for Industry Circular 2004-3 -- I wouldn't worry about it right now.  If you find yourself regularly exporting to Canada then it would make sense to apply for the variance offered in that circular, but for your first shipment, I wouldn't bother. (the variance allows you to retain your "proof of export" documentation at your DSP instead of mailing it in).