Brewers and other bev-alc manufacturers stand to face serious inconveniences if the federal government shuts down at the end of today (September 30), industry trade groups have cautioned.
A bill to fund the government through the next seven weeks has passed the House of Representatives and is awaiting a Senate vote. The House approved the Continuing Appropriations and Extensions Act by a vote of 217-212, largely along party lines.
Senate Democrats have said they will not vote for the bill unless their Republican colleagues walk back cuts to Medicaid and other health care benefits for some constituents, which will soon expire under the Trump administration’s signature policy bill passed this summer.
If the government shuts down, the Alcohol and Tobacco Tax and Trade Bureau (TTB) will cease operating, which would delay the approval of labels, formulas and permits, trade groups have warned.
“Keeping the Alcohol and Tobacco Tax and Trade Bureau (TTB) open for the beer industry is vital for several services performed by the alcohol industry’s chief regulator, including label and formula approvals,” the Beer Institute (BI) wrote in a member update last week.
The Brewers Association (BA), which represents the nation’s small and independent craft brewers, cautioned members to prepare for a shutdown.
“A government shutdown could create serious challenges for small producers across the brewing industry,” BA special projects coordinator Marc Preo wrote in a post. “The [TTB] would lose ‘non-essential’ personnel, disrupting services such as label and formula approvals, brewer’s notices and other types of permits and approvals.
“While the collection of federal excise taxes would continue, other essential administrative functions would likely be delayed or suspended,” he continued.
In addition to the TTB, the Small Business Administration (SBA) – another government agency that often serves craft brewers – would significantly curtail operations during a shutdown, likely delaying the disbursement of loans.
In a newsletter Monday, the Maine Brewers’ Guild warned members to “if there is a shut down there may be a significant backlog when the government comes back, as TTB staff will be working through a backlog.”
The guild also urged members to continue “timely filing of taxes and reports” even if a shutdown does occur.
During a 2013 government shutdown, the TTB’s system rejected all formula and label applications that had been labeled “needs correction.” After that 16-day shutdown ended, the bureau reinstated all previously rejected applications and extended the length of time such applications could be saved as drafts from 30 to 60 days, according to a post on its website.