What is a Virginia Wholesale Wine Distributor Bond?
A quick guide to one of the most important licensure requirements for wholesale wine distributors!
What is a Wholesale Wine Distributor Bond?
The purpose of this surety bond is to ensure the compliance of the wholesale wine distributor to the Alcoholic Beverage Control Act and to the relevant regulations once licensed.
This includes the procedures that he or she has to follow when conducting his or her business.
This includes, but is not limited to, the following:
- The wholesale wine distributor must submit a copy of the purchase order for wine and invoices to the Alcoholic Beverage Control Board.
- The licensee must submit a report to the Alcoholic Beverage Control Board on the 15th day of the following month in lieu of the purchase order or invoices.
- A separate invoice must be used for nontaxed wine sales as well as for wines that are sold outside Virginia.
- Two cases is the maximum number of cases that can be peddled to licensed retailers.
- Remit the proper mark-up to the Alcoholic Beverage Control Board.
Failure to perform the required obligations will be a ground for a bond claim.
What is the Wholesale Wine Distributor Bond amount?
The bond amount will vary per license applicant. It will be based on the applicant’s anticipated tax liability for the year. However, the bond amount will not be more than $10,000.
Your bond premium will depend on your credit score. Those who have an excellent credit score will be able to pay as little as 1% of the bond amount!
How can I get a Wholesale Wine Distributor Bond?
We have made the surety bond procedure easier for you! Just follow these simple steps:
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
Once we have received your application, we will immediately start the bonding process. We will inform you about the important documents that you need to submit for the next step, which is the underwriting process.
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process has been fulfilled, we will issue your surety bond and send it to you immediately!
What are the surety bond conditions?
- The surety bond should be issued by a Surety who is authorized to conduct business in the Commonwealth of Virginia
- The Obligee of the bond should be the Commonwealth of Virginia
- The licensed wholesale wine distributor must comply with the provisions of the Alcoholic Beverage Control Act as well as the rules and regulations of the Alcoholic Beverage Control Board
- If the licensee commits a violation, the aggrieved party will be eligible to file for a claim against the bond