TTB Wine Bond
What is a wine bond?
A wine bond is a type of federal alcohol bond that wine producers and importers must obtain to comply with the regulations of the Alcohol and Tobacco Tax and Trade Bureau (TTB). The TTB is a federal agency that regulates the production, labeling, and taxation of alcoholic beverages in the United States.
A wine bond ensures that the TTB collects taxes owed by wine producers and importers. The bond acts as a form of insurance, protecting the government and consumers from financial loss in case a producer or importer fails to pay taxes or comply with TTB regulations. Specifically, it covers the following:
- Tax liability of wine on hand and on the way to its destination
- Tax not paid on wine removed from the bonded premises for sale or consumption
- Wine operations plus tax deferral coverage
See the TTB’s Wind Bond Instructions worksheet for more details. You can also preview the bond form from the TTB website.
Get Your TTB Wine Bond:
Quick Takeaways
- A wine bond is a type of federal alcohol bond that wine producers and importers must obtain to comply with the regulations of the Alcohol and Tobacco Tax and Trade Bureau (TTB).
- A wine bond ensures that the TTB collects taxes owed by wine producers and importers.
- The cost of a TTB wine bond varies depending on several factors, including the amount of the bond required based on your tax liability, your credit score, and the type of wine produced or imported.
Who needs a TTB wine bond and why?
If you’re a commercial wine producer or importer in the United States, you need a wine bond to comply with TTB regulations. The bond is mandatory for all businesses that produce, bottle, blend, or store wine. Additionally, wine importers must obtain a wine bond to ensure payment of customs duties and excise taxes.
Without a wine bond, you cannot obtain a permit to operate legally in the United States. The bond is required to guarantee payment of taxes on wine production or imports.
How much do TTB wine bonds cost?
The cost of a TTB wine bond varies depending on several factors, including the amount of the bond required based on your tax liability, your credit score, and the type of wine produced or imported. The TTB requires a minimum bond amount of $1,000 for small wine producers and importers, but the bond amount may be much higher for larger businesses.
Typically, the cost of a wine bond ranges from 1% to 10% of the bond amount, depending on the creditworthiness of the applicant. For example, if you need a $50,000 wine bond and have good credit, you may pay a premium of $500 to $5,000.
Get a TTB Wine Bond in Your State
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.