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Electronic Code of Federal Regulations

e-CFR data is current as of April 1, 2020

Title 27Chapter ISubchapter APart 19Subpart F → §19.166


Title 27: Alcohol, Tobacco Products and Firearms
PART 19—DISTILLED SPIRITS PLANTS
Subpart F—Bonds and Consents of Surety


§19.166   Required penal sums.

A person must determine the penal sums for the various bonds required by this subpart according to the following table:

(a) Operations bond for a single plant operating as a:Required penal sum represents:The penal sum must be:
Not less than—and need not be more than—
(1) DistillerThe amount of tax on spirits produced during a 15-day period$5,000$100,000
(2) Warehouseman, in generalThe amount of tax on spirits and wines deposited in, stored on, and in transit to, the bonded premises5,000200,000
(3) Warehouseman limited to storage of spirits in packages to a total of not over 50,000 proof gallonsThe amount of tax on spirits and wines deposited in, stored on, and in transit to, the bonded premises5,00050,000
(4) Distiller and warehousemanThe amount of tax on spirits produced during a period of 15 days, plus the tax on spirits and wines deposited in, stored on, and in transit to the bonded premises10,000200,000
(5) Distiller and processorThe amount of tax on spirits produced during a 15-day period, plus the amount of tax on spirits, denatured spirits, articles and wines deposited in, or stored on, and in transit to the bonded premises10,000200,000
(6) Warehouseman and processor in generalThe amount of tax on spirits, denatured spirits, articles, and wines deposited in, stored on, and in transit to, the bonded premises10,000250,000
(7) Warehouseman and processor, limited to storage of spirits or denatured spirits in packages to a total of not over 50,000 proof gallons, and processing of spirits or denatured spirits so storedThe amount of tax on spirits, denatured spirits, articles, and wines deposited in, stored on, and in transit to, the bonded premises10,00050,000
(8) Distiller, warehouseman and processorThe amount of tax on spirits produced during a 15-day period, plus the amount of tax on spirits, denatured spirits, articles and wines deposited in, stored on, and in transit to, the bonded premises15,000250,000
(9) Distiller with adjacent bonded wine cellarThe amount required for a distiller (see paragraph (a)(1). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar6,000150,000
(10) Distiller and warehouseman with adjacent bonded wine cellarThe amount required for a distiller & warehouseman (see paragraph (a)(4). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar11,000250,000
(11) Distiller and processor with adjacent bonded wine cellarThe amount required for a distiller & processor (see paragraph (a)(5). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar11,000250,000
(12) Distiller, warehouseman and processor with adjacent bonded wine cellarThe amount required for a distiller-warehouseman-processor (see paragraph (a)(8). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar16,000300,000
(b) Area operations bond for two or more plants whose combined required penal sums under paragraph (a) of this section:Required penal sum is:But need not be more than:
(1) Do not exceed $300,000100%$300,000
(2) Exceed $300,000 but do not exceed $600,000$300,000 plus 70% of the amount over $300,000510,000
(3) Exceed $600,000 but do not exceed $1,000,000$510,000 plus 50% of the amount over $600,000710,000
(4) Exceed $1,000,000 but do not exceed $2,000,000$710,000 plus 35% of the amount over $1,000,0001,060,000
(5) Exceeds $2,000,000$1,060,000 plus 25% of the amount over $2,000,000
(c) Withdrawal bond for:Required penal sum represents:The penal sum must be:
Not less than—and need not be more than—
(1) One distilled spirits plantThe amount of tax which, at any one time, is chargeable against such bond, but has not yet been paid$1,000$1,000,000.
(2) Two or more distilled spirits plantsSum of the penal sums for each plant calculated in paragraph (c)(1) of this section($1,000) × (number of plants)(Number of plants) × $1,000,000.
(d) Unit bond for:Required penal sum represents:The penal sum must be:
Not less than—and need not be more than—
(1) Operations at one distilled spirits plant (including any adjacent bonded wine cellar), and withdrawals from the bonded premises of the same plantAn amount equal to the sum of the required penal sums of an operations bond and a withdrawal bond for the plant, if such bonds were obtained separately. (See paragraphs (a) and (c)(1) in this section.)$6,000$1,300,000.
(2) Operations at two or more distilled spirits plants (including any adjacent bonded wine cellars), and withdrawals from the bonded premises of the same plantsAn amount equal to the sum of the penal sums of an area operations bond and withdrawal bonds needed for all of the covered plants, if such bonds were obtained separately. (Total penal sums of paragraphs (b) and (c)(2) in this section.)Sum of the minimum penal sums for operations and withdrawal bonds required for each plant covered by the bondSum of the maximum penal sums for area operations bonds and withdrawal bonds required for the plants covered by the unit bond.

(26 U.S.C. 5173)

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