Code of Federal Regulations (alpha)

CFR /  Title 27  /  Part 19  /  Sec. 19.166 Required penal sums.

A person must determine the penal sums for the various bonds required by this subpart according to the following table: ------------------------------------------------------------------------

The penal sum must

be:

---------------------

(a) Operations bond for a Required penal sum and needsingle plant operating as a: represents: Not less not be

than-- more

(1) Distiller............... The amount of tax on $5,000 $100,000

spirits produced

during a 15-day

period.(2) Warehouseman, in general The amount of tax on 5,000 200,000

spirits and wines

deposited in,

stored on, and in

transit to, the

bonded premises.(3) Warehouseman limited to The amount of tax on 5,000 50,000

storage of spirits in spirits and wines

packages to a total of not deposited in,

over 50,000 proof gallons. stored on, and in

transit to, the

bonded premises.(4) Distiller and The amount of tax on 10,000 200,000

warehouseman. spirits produced

during a period of

15 days, plus the

tax on spirits and

wines deposited in,

stored on, and in

transit to the

bonded premises.

(5) Distiller and processor. The amount of tax on 10,000 200,000

spirits produced

during a 15-day

period, plus the

amount of tax on

spirits, denatured

spirits, articles

and wines deposited

in, or stored on,

and in transit to

the bonded premises.(6) Warehouseman and The amount of tax on 10,000 250,000

processor in general. spirits, denatured

spirits, articles,

and wines deposited

in, stored on, and

in transit to, the

bonded premises.(7) Warehouseman and The amount of tax on 10,000 50,000

processor, limited to spirits, denatured

storage of spirits or spirits, articles,

denatured spirits in and wines deposited

packages to a total of not in, stored on, and

over 50,000 proof gallons, in transit to, the

and processing of spirits bonded premises.

or denatured spirits so

stored.(8) Distiller, warehouseman The amount of tax on 15,000 250,000

and processor. spirits produced

during a 15-day

period, plus the

amount of tax on

spirits, denatured

spirits, articles

and wines deposited

in, stored on, and

in transit to, the

bonded premises.(9) Distiller with adjacent The amount required 6,000 150,000

bonded wine cellar. for a distiller

(see paragraph

(a)(1). above) plus

(1). above) plus

the amount of tax

on wines and wine

spirits possessed

on, and in transit

to, the adjacent

wine cellar.(10) Distiller and The amount required 11,000 250,000

warehouseman with adjacent for a distiller &

bonded wine cellar. warehouseman (see

paragraph (a)(4).

above) plus the

amount of tax on

wines and wine

spirits possessed

on, and in transit

to, the adjacent

wine cellar.(11) Distiller and processor The amount required 11,000 250,000

with adjacent bonded wine for a distiller &

cellar. processor (see

paragraph (a)(5).

above) plus the

amount of tax on

wines and wine

spirits possessed

on, and in transit

to, the adjacent

wine cellar.(12) Distiller, warehouseman The amount required 16,000 300,000

and processor with adjacent for a distiller-

bonded wine cellar. warehouseman-

processor (see

paragraph (a)(8).

above) plus the

amount of tax on

wines and wine

spirits possessed

on, and in transit

to, the adjacent

wine cellar.------------------------------------------------------------------------

(b) Area operations bond for

two or more plants whose

combined required penal sums Required penal sum is: But need not

under paragraph (a) of this be more than:

(1) Do not exceed $300,000..... 100%................... $300,000(2) Exceed $300,000 but do not $300,000 plus 70% of 510,000

exceed $600,000. the amount over

$300,000.(3) Exceed $600,000 but do not $510,000 plus 50% of 710,000

exceed $1,000,000. the amount over

$600,000.(4) Exceed $1,000,000 but do $710,000 plus 35% of 1,060,000

not exceed $2,000,000. the amount over

$1,000,000.(5) Exceeds $2,000,000......... $1,060,000 plus 25% of

the amount over

$2,000,000.------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------------

The penal sum must be:

Required penal sum --------------------------------------------------

(c) Withdrawal bond for: represents: and need not be more

(1) One distilled spirits plant..... The amount of tax $1,000................ $1,000,000.

which, at any one

time, is chargeable

against such bond, but

has not yet been paid.(2) Two or more distilled spirits Sum of the penal sums ($1,000) x (number of (Number of plants) x

plants. for each plant plants). $1,000,000.

calculated in

paragraph (c)(1) of

this section.---------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------

The penal sum must be:

Required penal sum -----------------------------------------------

(d) Unit bond for: represents: and need not be more

(1) Operations at one distilled An amount equal to the sum $6,000................ $1,300,000.

spirits plant (including any of the required penal

adjacent bonded wine cellar), and sums of an operations

withdrawals from the bonded bond and a withdrawal

premises of the same plant. bond for the plant, if

such bonds were obtained

separately. (See

paragraphs (a) and (c)(1)

in this section.).

(2) Operations at two or more An amount equal to the sum Sum of the minimum Sum of the maximum

distilled spirits plants (including of the penal sums of an penal sums for penal sums for area

any adjacent bonded wine cellars), area operations bond and operations and operations bonds and

and withdrawals from the bonded withdrawal bonds needed withdrawal bonds withdrawal bonds

premises of the same plants. for all of the covered required for each required for the

plants, if such bonds plant covered by the plants covered by the

were obtained separately. bond. unit bond.

(Total penal sums of

paragraphs (b) and (c)(2)

in this section.).---------------------------------------------------------------------------------------------------------------- (26 U.S.C. 5173)