The American Whiskey Fix: Removing an Unfair Barrier to U.S. Whiskey Exports

American Whiskey Association Calls on Congress to Advance Bipartisan Duty Drawback Reform

November 2026 | Washington, D.C.

American whiskey is more than a world-renowned spirit. It is a uniquely American agricultural and manufacturing success story, supporting farmers, cooperages, distillers, manufacturers, and communities across the United States.

Yet American whiskey producers face an unnecessary disadvantage under federal trade law that limits their ability to compete internationally.

The American Whiskey Association (AWA) is leading efforts to correct that disparity through the Duty Drawback Clarification Act (H.R. 3028 and S. 952), bipartisan legislation that would remove a technical barrier preventing American whiskey exporters from accessing an established federal export-support program.

Why American Whiskey Needs This Fix

Duty drawback is a longstanding federal customs program that allows eligible businesses to recover certain duties, taxes, and fees paid on imported merchandise when qualifying products are subsequently exported.

Unfortunately, the current Harmonized Tariff Schedule separates Scotch and Irish whisky from Bourbon, rye, and other American whiskies at the eight-digit classification level.

This technical distinction, together with existing statutory limitations, effectively prevents American whiskey producers from utilizing substitution duty drawback in circumstances where other qualifying products can benefit.

The result is an unnecessary competitive disadvantage for an iconic American industry.

A Simple, Targeted Legislative Solution

The Duty Drawback Clarification Act would:

• Establish a uniform eight-digit tariff classification for whiskies.
• Preserve separate statistical reporting categories for Bourbon, rye, Scotch, Irish, and other whiskies.
• Allow qualifying American whiskey exports to satisfy the tariff-classification requirements for substitution drawback.
• Maintain existing customs documentation, verification, and compliance requirements.

Importantly, this legislation does not create a new subsidy, eliminate foreign tariffs, or guarantee refunds. It simply corrects an outdated classification barrier and allows qualifying American whiskey exporters to access an existing program under established federal law.

American Agriculture and Manufacturing Have a Stake

The importance of this reform extends well beyond distilleries.

American whiskey production depends on a broad domestic supply chain that includes grain farmers, barrel makers, manufacturers, bottlers, transportation providers, and exporters.

These businesses make long-term investments in American jobs, infrastructure, and production capacity.

At a time when the domestic market is under pressure and international competition is intensifying, federal policy should strengthen, not unnecessarily restrict, American exporters.

According to IWSR data cited in AWA’s October 2026 policy paper, the U.S. American whiskey category was valued at approximately $12 billion in 2025, representing a 2.2% decline in value and a 3.2% decline in volume from the previous year.

Expanding international market opportunities is essential to the industry’s long-term competitiveness.

AWA Calls for Congressional Action

The American Whiskey Association is urging Congress to advance H.R. 3028 and S. 952 and include the Duty Drawback Clarification Act in a year-end legislative package.

This narrow, bipartisan reform would help ensure American whiskey producers are not excluded from an established export tool because of a technical distinction in federal tariff classifications.

American whiskey competes in a global marketplace. American trade policy should recognize that reality.

The American Whiskey Fix is about fairness, competitiveness, and supporting American agriculture and manufacturing.

Congress has an opportunity to correct this disparity and strengthen one of America’s most recognizable exports.

AWA will continue working with policymakers, industry partners, and producers to advance this important legislation and promote American whiskey around the world.

Lead. Protect. Promote.

About the American Whiskey Association

The American Whiskey Association (AWA) represents the interests of American whiskey producers and the broader industry, advocating for policies that protect American whiskey, expand global market access, and promote the industry’s contributions to American agriculture, manufacturing, and economic growth.

Our mission: Make American whiskey the world’s whiskey.