Sen. Charles E. "Chuck" Schumer
WASHINGTON, DC -- U.S. Senator Charles E. Schumer, D-NY, is urging the Treasury Department and the Department of Homeland Security to withdraw recent proposals that he says would adversely affect New York State's wine industry.
October 15 proposals by the Bureau of Customs and Border Protection (CBP) and the Alcohol and Tobacco Tax and Trade Bureau (TTB) industry would repeal a program that now provides a rebate for wine producers and distributors who export New York wine.
Schumer was one of 10 senators from top wine-producing states who wrote to Treasury Secretary Timothy Geithner and Secretary of Homeland Security Janet Napolitano to encourage them to withdraw the CBP and TTB proposed regulations and retain the current drawback program. New York's junior senator, Kirsten Gillibrand, also co-signed the letter.
According to the U.S. Department of Agriculture, about 55% of wine made in New York is sold through distributors, a significant portion of which is exported to Canada.
Under the current program, any federal tax or duty that an American vineyard or distributer pays on wine imported from another country is refunded when that same entity exports American-made wine of roughly the same value. Current duties and taxes on wine imports total approximately $1.30 per gallon.
As things stand, the American vineyard or distributor gets a refund of these taxes and duties if they export a similarly-valued bottle of New York wine. The refund is a significant incentive for companies to export wine to Canada and overseas, and allows them to price those bottles more competitively, boosting sales and revenue for New York's vineyards. The incentive program is called “substitution drawback.”
“Over the past decade, the wine industry in New York has profited greatly from the substitution drawback program,” Schumer said. “Preserving these measures will ensure the continued economic growth of the industry and level the playing field for U.S. businesses who want to grow their exports. That is why I am urging Treasury and DHS to withdraw these proposals and maintain the current drawback program.”
• Go here to learn about NY's various wine regions
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