1513-0013 Laws and Regs.

-7-

1513-0013

26 U.S.C.

Sec. 5173. Bonds

(a) Operations at, and withdrawals from, distilled spirits plant must be covered by bond

(1) Operations

No person intending to establish a distilled spirits plant may

commence operations at such plant unless such person has furnished

bond covering operations at such plant.

(2) Withdrawals

No distilled spirits (other than distilled spirits withdrawn

under section 5214 or 7510) may be withdrawn from bonded premises

except on payment of tax unless the proprietor of the bonded

premises has furnished bond covering such withdrawal.

(b) Operations bonds

The bond required by paragraph (1) of subsection (a) shall meet the

requirements of paragraph (1), (2), or (3) of this subsection:

(1) One plant bond

The bond covers operations at a single distilled spirits plant.

(2) Adjacent wine cellar bond

The bond covers operations at a distilled spirits plant and at

an adjacent bonded wine cellar.

(3) Area bond

The bond covers operations at 2 or more distilled spirits plants (and adjacent bonded wine cellars) which--

(A) are located in the same geographical area (as designated in regulations prescribed by the Secretary), and

(B) are operated by the same person (or, in the case of a

corporation, by such corporation and its controlled

subsidiaries).

(c) Withdrawal bonds

The bond required by paragraph (2) of subsection (a) shall cover

withdrawals from 1 or more bonded premises the operations at which could be covered by the same operations bond under subsection (b).

(d) Unit bonds

Under regulations prescribed by the Secretary, the requirements of

paragraphs (1) and (2) of subsection (a) shall be treated as met by a

unit bond which covers both operations at, and withdrawals from, 1 or

more bonded premises which could be covered by the same operations bond

under subsection (b).

(e) Terms and conditions

(1) In general

Any bond furnished under this section shall be conditioned that

the person furnishing the bond--

(A) will faithfully comply with all provisions of law and

regulations relating to the activities covered by such bond,

and

(B) will pay--

(i) all taxes imposed by this chapter, and

(ii) all penalties incurred by, or fines imposed on,

such person for violation of any such provision.

(2) Other terms and conditions

Any bond furnished under this section shall contain such other

terms and conditions as may be required by regulations prescribed

by the Secretary.

(f) Amount

(1) In general

The penal sum of any bond shall be the amount determined under

regulations prescribed by the Secretary.

(2) Maximum and minimum amount

The Secretary shall by regulations prescribe a minimum amount

and a maximum amount for each type of bond which may be furnished

under this section.

(g) Total amount available

The total amount of any bond furnished under this section shall be

available for the satisfaction of any liability incurred under the terms and conditions of such bond.

(h) Special rules

For purposes of this section--

(1) Withdrawal bonds

In the case of any bond furnished under this section which

covers withdrawals but not operations--

(A) such bond shall be in addition to the operations bond,

and

(B) if distilled spirits are withdrawn under such bond, the

operations bond shall no longer cover liability for payment of

the tax on the spirits withdrawn.

(2) Adjacent wine cellars

(A) Requirements

No wine cellar shall be treated as being adjacent to a

distilled spirits plant unless--

1. such distilled spirits plant is qualified under

this subchapter for the production of distilled spirits,

and

(ii) such wine cellar and the distilled spirits plant

are operated by the same person (or, in the case of a

corporation, by such corporation and its controlled

subsidiaries).

(B) Bond in lieu of wine cellar bond

In the case of any adjacent wine cellar, a bond furnished

under this section which covers operations at such wine cellar

shall be in lieu of any bond which would otherwise be required

under section 5354 with respect to such wine cellar (other than

supplemental bonds required under the second sentence of

section 5354).

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1349; amended Pub. L. 91-659, Sec. 4, Jan. 8, 1971, 84 Stat. 1966; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 805(c), July 26, 1979, 93 Stat. 276.)

Sec. 5272. Bonds

(a) Requirements

Before any permit required by section 5271(a) is granted, the

Secretary may require a bond, in such form and amount as he may

prescribe, to insure compliance with the terms of the permit and the

provisions of this chapter.

(b) Exceptions

No bond shall be required in the case of permits issued to the

United States or any governmental agency thereof, or to the several

States or any political subdivision thereof, or to the District of

Columbia.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1372; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(3), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834.)

Sec. 5354. Bond

The bond for a bonded wine cellar shall be in such form, on such

conditions, and with such adequate surety, as regulations issued by the

Secretary shall prescribe, and shall be in a penal sum not less than the tax on any wine or distilled spirits possessed or in transit at any one time (taking into account the appropriate amount of credit with respect to such wine under section 5041(c)), but not less than $1,000 nor more than $50,000; except that where the tax on such wine and on such distilled spirits exceeds $250,000, the penal sum of the bond shall be not more than $100,000. Where additional liability arises as a result of deferral of payment of tax payable on any return, the Secretary may require the proprietor to file a supplemental bond in such amount as may be necessary to protect the revenue. The liability of any person on any such bond shall apply whether the transaction or operation on which the liability of the proprietor is based occurred on or off the proprietor's premises.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec. 455(c), July 18, 1984, 98 Stat. 823; Pub. L. 104-188, title I, Sec. 1702(b)(7), Aug. 20, 1996, 110 Stat. 1869.)

Sec. 5401. Qualifying documents

(a) Notice

Every brewer shall, before commencing or continuing business, file

with the officer designated for that purpose by the Secretary a notice

in writing, in such form and containing such information as the

Secretary shall by regulations prescribe as necessary to protect and

insure collection of the revenue.

(b) Bonds

Every brewer, on filing notice as provided by subsection (a) of his

intention to commence business, shall execute a bond to the United

States in such reasonable penal sum as the Secretary shall by regulation prescribe as necessary to protect and insure collection of the revenue. The bond shall be conditioned (1) that the brewer shall pay, or cause to be paid, as herein provided, the tax required by law on all beer, including all beer removed for transfer to the brewery from other breweries owned by him as provided in section 5414; (2) that he shall pay or cause to be paid the tax on all beer removed free of tax for export as provided in section 5053(a), which beer is not exported or returned to the brewery; and (3) that he shall in all respects faithfully comply, without fraud or evasion, with all requirements of law relating to the production and sale of any beer aforesaid. Once in every 4 years, or whenever required so to do by the Secretary, the brewer shall execute a new bond or a continuation certificate, in the penal sum prescribed in pursuance of this section, and conditioned as above provided, which bond or continuation certificate shall be in lieu of any former bond or bonds, or former continuation certificate or certificates, of such brewer in respect to all liabilities accruing after its approval. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force between the parties for a succeeding period of not less than 4 years, the brewer may submit, in lieu of a new bond, a certificate executed, under penalties of perjury, by the brewer and the surety attesting to continuation of the bond, which certificate shall constitute a bond subject to all provisions of law applicable to bonds given pursuant to this section.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1388; amended Pub. L. 91-673, Sec. 3(a), Jan. 12, 1971, 84 Stat. 2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

Sec. 5711. Bond

(a) When required

Every person, before commencing business as a manufacturer of

tobacco products or cigarette papers and tubes, or as an export

warehouse proprietor, shall file such bond, conditioned upon compliance

with this chapter and regulations issued thereunder, in such form,

amount, and manner as the Secretary shall by regulation prescribe. A new or additional bond may be required whenever the Secretary considers such action necessary for the protection of the revenue.

(b) Approval or disapproval

No person shall engage in such business until he receives notice of

approval of such bond. A bond may be disapproved, upon notice to the

principal on the bond, if the Secretary determines that the bond is not

adequate to protect the revenue.

(c) Cancellation

Any bond filed hereunder may be canceled, upon notice to the

principal on the bond, whenever the Secretary determines that the bond

no longer adequately protects the revenue.

(Aug. 16, 1954, ch. 736, 68A Stat. 711; Pub. L. 85-859, title II,

Sec. 202, Sept. 2, 1958, 72 Stat. 1421; Pub. L. 89-44, title V,

Sec. 502(b)(6), June 21, 1965, 79 Stat. 151; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

27 CFR

Sec. 19.235 Consents of surety.

Consents of surety to changes in the terms of bonds shall be

executed on Form 1533 by the principal and by the surety with the same

formality and proof of authority as is required for the execution of

bonds.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

Sec. 22.25 Right of entry and examination.

An appropriate TTB officer may enter, during business hours or at

any time operations are being conducted, any premises on which

operations governed by this part are conducted to inspect the records

required by this part to be kept on those premises. An appropriate TTB

officer may also inspect and take samples of tax-free alcohol to which

those records relate.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985. Redesignated by T.D. ATF-443,

66 FR 13015, Mar. 2, 2001]

Sec. 24.152 Consents of surety.

Consents of surety to changes in the terms of bonds will be executed

on Form 1533 by the principal and by the surety with the same formality

and evidence of authority as is required for the execution of bonds.

(Approved by the Office of Management and Budget under control number

1513-0009)

Sec. 25.92 Consent of surety.

A brewer may change the terms of any bond filed under this part by

filing a consent of surety. Consents of surety will be executed on Form

1533 (5000.18) by the brewer and the surety on the bond, with the same

formality and proof of authorization as required for the execution of a

bond.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

Sec. 28.54 Consents of surety.

Consents of surety to changes in the terms of bonds shall be

executed on Form 1533 by the principal and by the surety with the same

formality and proof of authority as is required for the execution of

bonds.

Sec. 40.137 Extension of coverage of bond.

An extension of coverage of bond shall be manifested on Form 2105 by the manufacturer of tobacco products and by the surety on the bond with the same formality and proof of authority as required for the execution of the bond.

(72 Stat. 1421; 26 U.S.C. 5711)

Sec. 41.124 Extension of coverage of bond.

An extension of coverage of the bond of a bonded manufacturer shall

be required (a) as provided in Sec. 41.114a, and (b) in the case of any

change in the location of the factory as set forth in the bond. Such

extension of coverage of the bond shall be manifested on Form 2105 by

the bonded manufacturer and by the surety on the bond with the same

formality and proof of authority as required for the execution of the

bond.

[T.D. ATF-5, 38 FR 19689, July 23, 1973. Redesignated at 40 FR 16835,

Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69

FR 52424, 52425, Aug. 26, 2004]

Sec. 44.126 Extension of coverage of bond.

An extension of the coverage of any bond filed under this part shall be manifested on Form 2105 (5000.7) by the export warehouse proprietor and by the surety on the bond with the same formality and proof of authority as required for the execution of the bond.

(72 Stat. 1421; 26 U.S.C. 5711)

[25 FR 4718, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,

as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002.