Tax & Customs
Distilled Spirits Plant Bond
A distilled spirits plant bond is the federal excise tax bond a distillery, bonded warehouse, or spirits processor files with the TTB before it can operate.
- Required by
- Alcohol and Tobacco Tax and Trade Bureau (TTB), 27 CFR Part 19
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond (TTB F 5110.56) promises the Alcohol and Tobacco Tax and Trade Bureau that the proprietor will pay federal excise taxes on spirits, including taxes on unexplained shortages, and any penalties or fines. It also promises compliance with federal law for covered operations. If the proprietor fails to pay, TTB can collect from the proprietor, the surety, or both.
Who needs it
- Craft and large distilleries
- Bonded spirits warehouses
- Spirits processors and bottlers
What the underwriter looks at
- Expected excise tax liability
- Type of operations (distilling, warehousing, processing)
- Owners' credit and financial statements
- Whether the plant pays tax on a deferred basis
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How is the bond amount figured?
It is tied to the tax on spirits the plant produces or stores, with a minimum and maximum set by regulation for each type of operation. For example, a distiller's operations bond runs from $5,000 to $100,000.
Do small distilleries still need a bond?
Possibly not. A proprietor who expects to owe a small enough amount of tax to qualify for annual or quarterly returns may be exempt from the bond for nonindustrial operations. Industrial-use operations still need coverage.
Can I start operating before the bond is approved?
No. TTB will not approve the plant's registration until the bond is provided.