H.R. 3028: Duty Drawback Clarification Act

This bill, known as the Duty Drawback Clarification Act, aims to modify the United States Harmonized Tariff Schedule concerning the categorization of whiskies. The key provisions of the bill are as follows:

Uniform Duty Treatment of Whiskies

The bill proposes the following changes to the tariff schedule:

• The current subheading for whiskies, identified as 2208.30, will be replaced. This new subheading will be 2208.30.00 and will provide a uniform classification for all types of whiskies.

Specific Classifications

The United States International Trade Commission (USITC) will be instructed to assign specific statistical suffixes to the new whisky subheading (2208.30.00). These suffixes will distinguish various types of whiskies based on container sizes. The classifications will include:

• 2208.30.0010: Irish or Scotch whiskies in containers holding not over 4 liters
• 2208.30.0015: Irish or Scotch whiskies in containers holding over 4 liters
• 2208.30.0020: Bourbon in containers holding not over 4 liters
• 2208.30.0025: Bourbon in containers holding over 4 liters
• 2208.30.0030: Rye whiskies in containers holding not over 4 liters
• 2208.30.0035: Rye whiskies in containers holding over 4 liters
• 2208.30.0040: Other whiskies in containers holding not over 4 liters
• 2208.30.0045: Other whiskies in containers holding over 4 liters

Effective Date

The amendments proposed in this bill will take effect 15 days after the bill has been enacted. This means that the new classification system will apply to whiskies entered or withdrawn from warehouse for consumption from that date onward.

Relevant Companies

• DEO - Diageo plc: A major producer of spirits, including Scotch and Irish whiskies, which could be directly impacted by changes in tariff classifications.
• MRK - Mark Anthony Group: A beverage company that could be affected by how tariffs are applied to their products under the new classifications.
• MA - MGP Ingredients, Inc.: As a supplier of whiskey and other distilled spirits, they may experience changes in trade implications based on this bill.