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Electronic Code of Federal Regulations

e-CFR data is current as of March 26, 2020

Title 27Chapter ISubchapter APart 19Subpart F → §19.170

Title 27: Alcohol, Tobacco Products and Firearms
Subpart F—Bonds and Consents of Surety

§19.170   Termination of bonds.

Liability under operations bonds, withdrawal bonds, and unit bonds may be terminated for future withdrawals, future production, or future deposits as set forth below:

(a) On application by the surety. A surety may terminate a bond by filing a notice as provided in §19.171;

(b) By replacement of the bond. A principal may terminate an existing bond by replacing it with a superseding bond approved by TTB;

(c) By discontinuing withdrawals. A principal may terminate a withdrawal bond by notifying TTB that the principal has stopped making withdrawals covered by the bond, if the bond was filed solely as a withdrawal bond;

(d) By discontinuing the business. A principal may terminate a bond by notifying TTB that the principal has discontinued business; and

(e) On application by an existing proprietor who becomes exempt from bond requirements. If a proprietor has held a bond or bonds covering operations or withdrawals of distilled spirits for nonindustrial use and becomes exempt from those bond requirements as provided under §19.151(d), the proprietor may apply to TTB to terminate the bond or bonds covering such operations or withdrawals. To apply, the proprietor must file an amendment to TTB F 5110.41, Registration of Distilled Spirits Plant, as provided in §19.136. The proprietor must accurately state in the submission that the proprietor:

(1) Will withdraw distilled spirits for deferred payment of tax as provided in §19.235;

(2) Reasonably expects to be liable for not more than $50,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for the current calendar year (see definition of “Reasonably expects” in §19.235(e)); and

(3) Was liable for not more than $50,000 in such taxes in the preceding calendar year.

(26 U.S.C. 5173)

[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]

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