Every winery and distillery must have a valid bond to cover the liability for excise taxes that may be due for activities conducted.
Your operating bond covers the tax value of the “in-bond” wine either on hand in your winery or on route to your winery. In calculating the size of the bond, you should exclude any wine in a tax-paid area such as your tasting room, any wine in off-bond areas such as a wine library or other storage outside of your bonded premises, and any wine stored for you at commercial warehouses or other bonded wineries.
The bond is calculated by multiplying your winery’s tax rate times your maximum storage capacity (or the maximum quantity of wine you expect to store at any one time).
If the winery qualifies for the full small producer credit of $0.90/gallon, you may be able to use the reduced tax rates on still wine for your bond calculations. However, be careful! The small producer credit applies only to the first 100,000 gallons (approximately 42,000 cases) removed from bond each year.
The bond types available are Cash, Surety or Treasury Notes.
CASH BONDS may be submitted to the US Treasury in the form of cash, postal money orders, certified checks, cashiers’ checks or treasurers’ checks as collateral security.
SURETY BONDS may be obtained for the appropriate amount from a corporate surety/insurance company approved by the US Treasury.
TREASURY NOTES/BONDS from a bank or brokerage firm that has the ability to transfer the security/collateral to the Philadelphia Federal Reserve Bank.
For more information on regulations and resources regarding bond requirements visit the following links:
Vino Services NW can provide surety bond quotes for wineries and distilleries. To obtain a quote, complete the surety bond application below and email or fax it to our office for processing. *A financial statement may be required for surety bond approval.