U.S. Rep. Steve Womack (R-AR) on Feb. 25 introduced the bipartisan Duty Drawback Clarification Act to give American spirit distillers access to a federal program that provides the refund of duties, taxes and fees paid at the time of import when similar items are exported.
Currently, American whiskey’s tariff classification prevents the sector from being eligible under a recent decision from the U.S. Court of Appeals for the Federal Circuit that allows nearly all beverage alcohol products to utilize the duty drawback program, according to information provided by Rep. Womack’s office.
If enacted, H.R. 6854, which is sponsored by U.S. Rep. John Yarmuth (D-KY), would give these distillers access to the same export-promotion programs that are commonly used by beer and wine producers by clarifying the Harmonized Tariff Schedule, which provides the substitutions allowed to make the aged spirit eligible, the information says. At the same time, H.R. 6854 would help ensure that no bad actors take advantage of the program.
“‘Made in the USA,’ ‘Made in Arkansas.’ Those are the types of labels we want to see on more products across the globe. From Fort Smith to Kentucky and beyond, this legislation will support local manufacturing jobs and unleash new sources of opportunity for distillers,” Rep. Womack said.
“The entrepreneurial character of the Natural State is strong, and our policies should always ensure our businesses can fairly compete,” added the congressman. “I’m proud to work alongside Rep. Yarmuth to advance legislation that prioritizes American jobs and economic growth.”