Tax & Customs
TTB Bond (Alcohol and Tobacco Excise Tax)
A TTB bond is a federal bond the Alcohol and Tobacco Tax and Trade Bureau requires from many wineries, breweries, distilleries, and tobacco manufacturers to secure federal excise taxes.
- Required by
- Alcohol and Tobacco Tax and Trade Bureau (TTB), U.S. Treasury
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises TTB (the obligee) that the business will pay federal excise taxes owed on the alcohol or tobacco it produces, stores, or removes. If the business fails to pay, TTB claims the unpaid tax from the surety, and the business repays the surety.
Who needs it
- Wineries and bonded wine cellars
- Distilled spirits plants
- Breweries above the exemption threshold
- Tobacco product manufacturers and export warehouses
What the underwriter looks at
- Expected annual excise tax liability
- Business financial statements
- Owner credit
- Tax payment history
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
Do small producers still need a TTB bond?
Since 2017, alcohol producers who expect to owe no more than $50,000 in excise tax for the year, owed no more than $50,000 the year before, and pay semi-monthly, quarterly, or annually can be exempt. You must ask TTB for the exemption; it is not automatic.
How is the bond amount figured?
TTB regulations set a formula based on the tax on product held, in transit, or deferred, with minimums and maximums for each bond type.
Does the exemption cover tobacco?
The 2017 exemption applies to distilled spirits, wine, and beer. Tobacco manufacturers still follow the bond rules in 27 CFR Part 40.