commercial surety bond

Wine Surety Bond

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Wine Surety Bond

An Exquisite Surety Bond Experience for the Discerning Operators of Wine Cellars, Wineries, or Wine Warehouses.

Just like wines, a surety bond has a specific “terroir” in the sense that it is crafted from legal conditions that are unique to operators of wine cellars, wineries, or wine warehouses.

 

Wine Surety Bond is complex by nature, and that’s why we are here. We are very much willing and able to deal with the complexities of surety bonds so that you can focus on what matters most: YOUR BUSINESS.

 

We have made the bond application process safe and easier for you! But before we get into that, we’ll first give you a quick insight into what a Wine Surety Bond is.

What is a Wine Surety Bond?

It is a legal contract required by the Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB).

 

The bond will serve as an assurance that the excise tax imposed by the Internal Revenue Code of 1986 on wines produced and received by the operators of wine cellars, wineries, or wine warehouses will be paid on time and in full. The bond coverage will extend to special occupational taxes as well.

 

Any operator of wine cellars, wineries, or wine warehouses will not be permitted to conduct nor continue his or her wine business unless a surety bond is furnished.

 

The bond will be an agreement between three parties, namely:

  • Principal – Operators of wine cellars, wineries, or wine warehouses
  • Obligee – The Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB)
  • Surety – The party who will guarantee the principal’s fulfillment of obligations to the obligee. A surety will also be the party who will issue the bond.

Who or what does the wine surety bond apply to?

  • Wine
  • Spirits
  • Volatile fruit-flavor concentrate
  • Other commodities subject to tax under 26 U.S. Code Chapter 51
  • Operations of wine premises

How much does a wine surety bond cost?

The bond amount will vary per operator of a wine cellar, winery, or wine warehouse. There will be specific bases that the bond amount will be determined by.

BOND AMOUNT BASES
$1,000 to $50,000Tax imposed on all wine or spirits in transit or unaccounted for at any one time
$100,000If the liability is above $250,000
$500 to $250,000If the unpaid tax amount is more than $500

What is a surety bond premium?

A bond premium is a fee that the principal will pay the surety for extending the surety’s capital and credit to the principal so that the principal may perform the obligations required by the obligee.
To determine the bond premium, the surety will assess the principal’s credit score, performance history, and financial strength. A bond premium can be as low as 1% of the bond amount.

Know your bond premium! Get your FREE SURETY BOND QUOTE HERE.

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How can I get a Wine Surety Bond?

Get bonded in three simple steps! Here’s how:

  1. Apply for a wine surety bond. If you are ready to do that now, you may FILL OUT THIS FORM.
  2. Once we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
    • Your financial capability
    • Your business or job performance history
    • Your credit score

    An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.

  3. After you have paid the premium and have signed the indemnity agreement, your surety bond will be issued and sent to you!

What are the conditions of a Wine Surety Bond?

The conditions are, but not limited to, the following:

  • The principal must comply with the requirements of the relevant law and regulations
  • The principal must pay all taxes for which the principal may be liable
  • The principal must pay taxes on wines removed from bonded premises

Other Bonds That Are Related to Wine Bonds

Tax Deferral Bond – This bond is required if the proprietor removes wine from bonded wine premises for consumption or sale, before a tax is determined or paid, and if the unpaid tax is more than $500.

Strengthening Bond – The principal must submit a strengthening bond if the penal sum of a valid bond becomes insufficient.