Tax & Customs
Wine Bond (TTB)
A wine bond is the federal TTB bond (form TTB F 5120.36) a winery or bonded wine cellar files to cover federal excise tax on wine it produces or stores.
- Required by
- Alcohol and Tobacco Tax and Trade Bureau (TTB)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises TTB that the proprietor will pay federal excise taxes on wine produced, received, held, or in transit, and on tax determined but not yet paid. If the winery does not pay, TTB claims the tax from the surety, and the winery repays the surety.
Who needs it
- Wineries
- Bonded wine cellars
- Wine importers operating bonded premises
- Wineries above the small producer exemption
What the underwriter looks at
- Expected excise tax liability
- Volume of wine held and in transit
- Owner credit
- Financial statements
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 wine bond amount figured?
Under 27 CFR 24.148, the operations coverage must cover the tax on wine and spirits on hand, in transit, or unaccounted for at one time, with a set minimum and maximum. A separate tax deferral coverage applies if you pay tax after removal.
Do small wineries need a bond?
Wineries that owe no more than $50,000 a year in federal excise taxes and pay quarterly or annually can apply to TTB for an exemption. It is not automatic.