Bill Overview
Title: Duty Drawback Clarification Act
Description: This bill provides for drawback (refund of certain duties, taxes, and fees) on whiskies imported into the United States when the same or similar products are later exported or destroyed. Further, the bill prohibits a proprietor of a distilled spirits plant from voluntarily destroying distilled spirits as a basis for claiming a drawback.
Sponsors: Rep. Yarmuth, John A. [D-KY-3]
Target Audience
Population: Whiskey importers and exporters
Estimated Size: 3000
- The bill concerns the process of claiming duty drawbacks for imported and exported whiskey.
- Importers and exporters of whiskey will be directly impacted by this legislation, especially those dealing with the trade of whiskey between the U.S. and other countries.
- Consumers globally may indirectly feel the impact if there are any price adjustments due to changes in export/import duties.
Reasoning
- The majority of those impacted by this policy will be businesses engaged in the import and export of whiskey, including both small-scale operations and large distributors.
- This policy could benefit international import/export businesses by potentially lowering costs associated with duties, which might reflect in price adjustments for consumers.
- Consumers who do not engage in the import/export industry might experience minimal to no direct impact from this policy.
- Given the complexities of the market, different stakeholders might experience varied levels of impact, based on their scale of operations and reliance on imports/exports.
- The policy involves significant short-term costs, but the total financial outlay for government over 10 years is limited to $50 million.
- Interviews should reflect a broad range of stakeholders from those minimally affected to those potentially experiencing significant positive business implications.
- As the policy is industry-specific, 'none' impact is expected for individuals not directly involved with the whiskey trade business.
Simulated Interviews
Owner of whiskey distillery (Kentucky)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy will allow my business to competitively price its products in international markets.
- Our cost savings on import duties mean we can reinvest in our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Food and beverage importer (New York)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- The policy could help lower the cost of importing whiskey, making my business more profitable.
- I am concerned about the complexity of claiming drawbacks correctly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Owner of a craft whiskey microdistillery (California)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 16/20
Statement of Opinion:
- This policy probably won’t impact my business much since we don't export a lot.
- We're more affected by local regulations and consumer trends.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Sales manager at a multinational beverage company (Texas)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- This policy can give us an edge in price competitiveness against local producers overseas.
- It helps streamline some of the financial aspects of imports/exports.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Whiskey exporting consultant (Illinois)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- The policy simplifies processes for my clients, making my consulting services more vital.
- I see potential for increased work helping businesses adapt to the new policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Whiskey importer (Tennessee)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- This act could help us keep Scotch prices competitive with national brands.
- I’m worried about the paperwork involved in claiming these drawbacks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Retired (Washington)
Age: 65 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- I don't think this policy affects me directly.
- I hope it would lead to some interesting international whiskeys becoming cheaper here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Beverage industry analyst (California)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- This policy might impact certain parts of the industry I've been analyzing.
- I'm curious to see how it evaluates price adjustments and trade metrics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Whiskey bar owner (New York)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 17/20
Statement of Opinion:
- Cheaper international whiskeys could allow me to diversify and offer new options to customers.
- It may not significantly increase overall profits but gives some interesting marketing angles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Freelance writer (Oregon)
Age: 48 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 19/20
Statement of Opinion:
- Policies like this don't affect my work directly, though they create interesting topics to write about.
- Curious if it affects the availability of international whiskies in the US.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5005000 (Low: $3003000, High: $7007000)
Year 3: $5010000 (Low: $3006000, High: $7014000)
Year 5: $5020000 (Low: $3012000, High: $7028000)
Year 10: $5050000 (Low: $3030000, High: $7050000)
Year 100: $5500000 (Low: $3300000, High: $7700000)
Key Considerations
- The extent to which the prohibition on destroying spirits affects current practices could alter cost structures.
- Potential administrative burden which may require additional resources for enforcement and claim processing.