REFUNDS IN LIEU OF REDUCED RATES FOR CERTAIN CRAFT BEVERAGES PRODUCED OUTSIDE THE UNITED STATES.

SEC. 107. REFUNDS IN LIEU OF REDUCED RATES FOR CERTAIN CRAFT BEVERAGES PRODUCED OUTSIDE THE UNITED STATES. (a) Distilled Spirits.— (1) In general.—Section 5001(c), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: “(4) Refunds in lieu of reduced rates for foreign production removed after december 31, 2022.— “(A) In general.—In the case of any proof gallons of distilled spirits which have been produced outside the United States and imported into the United States, if such proof gallons of distilled spirits are removed after December 31, 2022— “(i) paragraph (1) shall not apply, and “(ii) the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section. “(B) Amount of refund.—The amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of— “(i) the excess (if any) of— “(I) the amount of tax imposed under this subpart on proof gallons of distilled spirits referred to in subparagraph (A) which were removed during such period, over “(II) the amount of tax which would have been imposed under this subpart on such proof gallons of distilled spirits if this section were applied without regard to this paragraph, plus “(ii) the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined. “(C) Application of rules related to elections and assignments.—Subparagraph (A)(ii) shall apply only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph. “(D) Rules for refunds within 90 days.—For purposes of refunds allowed under this paragraph, section 6611(e) shall be applied by substituting ‘90 days’ for ‘45 days’ each place it appears.” . (2) Coordination with determination for cover over to puerto rico and virgin islands.— (A) [26 U.S.C. 7652] In general.—Section 7652 is amended by adding at the end the following new subsection: “(i) Determination of Taxes Collected.—For purposes of subsections (a)(3), (b)(3), and (e)(1), refunds under section 5001(c)(4) shall not be taken into account as a refund, and the amount of taxes imposed by and collected under section 5001(a)(1) shall be determined without regard to section 5001(c).” . (B) Conforming amendment.—Section 7652(e) is amended by striking paragraph (5). (3) [26 U.S.C. 5001 note] Effective date.—The amendments made by this subsection shall apply to distilled spirits brought into the United States and removed after December 31, 2022. (b) Beer.— (1) In general.—Section 5051(a) is amended by adding at the end the following new paragraph: “(6) Refunds in lieu of reduced rates for foreign production removed after december 31, 2022.— “(A) In general.—In the case of any barrels of beer which have been produced outside the United States and imported into the United States, if such barrels of beer are removed after December 31, 2022— “(i) paragraph (1)(A)(i) shall not apply, and “(ii) the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section. “(B) Amount of refund.—The amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of— “(i) excess (if any) of— “(I) the amount of tax imposed under this section on barrels of beer referred to in subparagraph (A) which were removed during such period, over “(II) the amount of tax which would have been imposed under this section on such barrels of beer if this section were applied without regard to this paragraph, plus “(ii) the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined. “(C) Application of rules related to elections and assignments.—Subparagraph (A)(ii) shall apply only if the importer is an electing importer under paragraph (4) and the barrels of beer have been assigned to the importer pursuant to such paragraph. “(D) Rules for refunds within 90 days.—For purposes of refunds allowed under this paragraph, section 6611(e) shall be applied by substituting ‘90 days’ for ‘45 days’ each place it appears.” . (2) [26 U.S.C. 5051 note] Effective date.—The amendment made by this subsection shall apply to beer removed after December 31, 2022. (c) Wine.— (1) [26 U.S.C. 5041] In general.—Section 5041(c), as amended by the preceding provisions of this Act, is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph: “(7) Refunds in lieu of tax credits for foreign production removed after december 31, 2022.— “(A) In general.—In the case of any wine gallons of wine which have been produced outside the United States and imported into the United States, if such wine gallons are removed after December 31, 2022— “(i) paragraph (1) shall not apply, and “(ii) the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section. “(B) Amount of refund.—The amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of— “(i) excess (if any) of— “(I) the amount of tax imposed under this section on wine gallons of wine referred to in subparagraph (A) which were removed during such period, over “(II) the amount of tax which would have been imposed under this section (including any allowable credits) on such gallons of wine if this section were applied without regard to this paragraph, plus “(ii) the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined. “(C) Application of rules related to elections and assignments.—Subparagraph (A)(ii) shall apply only if the importer is an electing importer under paragraph (6) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph. “(D) Rules for refunds within 90 days.—For purposes of refunds allowed under this paragraph, section 6611(e) shall be applied by substituting ‘90 days’ for ‘45 days’ each place it appears.” . (2) [26 U.S.C. 5041 note] Effective date.—The amendments made by this subsection shall apply to wine removed after December 31, 2022. (d) Information Reporting in Case of Assignment of Lower Rates or Refunds by Foreign Producers of Beer, Wine, and Distilled Spirits.— (1) In general.—Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6038D the following new section: “SEC. 6038E. [26 U.S.C. 6038E] INFORMATION WITH RESPECT TO ASSIGNMENT OF LOWER RATES OR REFUNDS BY FOREIGN PRODUCERS OF BEER, WINE, AND DISTILLED SPIRITS “Any foreign producer that elects to make an assignment described in section 5001(c), 5041(c), or 5051(a) shall provide such information, at such time and in such manner, as the Secretary may prescribe in order to make such assignment, including information about the controlled group structure of such foreign producer.” . (2) [26 U.S.C. 6031] Clerical amendment.—Table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6038D the following new item: “Sec. 6038E. Information with respect to assignment of lower rates or refunds by foreign producers of beer, wine, and distilled spirits.” . (3) [26 U.S.C. 6038E note] Effective date.—The amendments made by this subsection shall apply to elections to make an assignment under section 5001(c), 5041(c), or 5051(a) of the Internal Revenue Code of 1986 after December 31, 2020. (e) [26 U.S.C. 5001 note] Administration of Refunds.—The Secretary of the Treasury (or the Secretary’s delegate within the Department of the Treasury) shall implement and administer sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of the Internal Revenue Code of 1986, as added by this Act, in coordination with the United States Customs and Border Protection of the Department of Homeland Security. (f) [26 U.S.C. 5001 note] Regulations.—The Secretary of the Treasury (or the Secretary’s delegate within the Department of the Treasury) shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations to require foreign producers to provide information necessary to enforce the volume limitations under sections 5001(c), 5041(c), and 5051(a) of such Code. (g) Report.—Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate within the Department of the Treasury) shall, in coordination with the United States Customs and Border Protection of the Department of Homeland Security, prepare, submit to Congress, and make publicly available a report detailing the plans for implementing and administering sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of such Code, as added by this Act.