Governor Asa Hutchinson’s Letter of Support

I am writing to express my concern regarding the proposed regulations submitted by the Treasury Department that include language barring U.S. producers of beer, wine, and distilled spirits from participating in the substitution duty drawback program.

The Trade Facilitation & Trade Enforcement Act of 2015’s expansion of the duty drawback program has already increased beverage alcohol manufacturing in Arkansas. The ability to drawback duties on imports has incentivized companies to domestically produce products for export that they would have otherwise produced outside of the country, directly creating quality manufacturing jobs for hardworking Arkansans.

I am confident this trend will continue, as has happened in many other industries thanks to similar programs. Possible limitations proposed by the Treasury Department will reverse this growth and hinder job creation.

I ask that you review the proposed regulations and ensure that they are modified to align with the Congressional intent of the Trade Facilitation & Trade Enforcement Act of 2015 and that you do not allow the promulgation of any rule that will limit the beverage alcohol industry eligibility for excise tax drawback on beer, wine, and spirits.

Please consider the possible economic impact these proposed regulations will have on the constituents of Arkansas, and I look forward to working with you on this important matter.

Sincerely,

Asa Hutchinson, Governor of Arkansas