TTB Bond for Drawback Guide
SuretyBonds.com offers the best service and fastest delivery for federal alcohol tax bonds in the industry. Learn how to navigate the TTB drawback bonding process with this quick guide.
Bond Overview
- Who Needs It: Non-beverage product manufacturers that claim distilled spirits drawback tax allowances
- Purpose: To provide financial security for tax drawback claimed on distilled spirits
- Regulating Body: The U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB)
- Required Amount: Varies based on quarterly drawback value, $1,000 minimum
- Premium Rates: Typically 1–10%, of the total coverage amount
What Are TTB Drawback Bonds?
A TTB bond for drawback is a type of continuous surety bond used to cover the value of drawback claimed on distilled spirits in a quarter. This protects the Alcohol and Tobacco Tax and Trade Bureau (TTB) from financial harm if a manufacturer or exporter defaults on their payments.
How Much Do TTB Drawback Bonds Cost?
TTB bond amounts for drawback on distilled spirits are determined based on quarterly drawback value with a $1,000 minimum and a $200,000 maximum. Confirm your exact bond coverage requirement with the TTB before purchasing.
Your premium rate will be a small percentage, typically 1–10%, of the total coverage amount. For example, you could pay as low as $100 for a $10,000 TTB bond for drawback with excellent credit. Request a free quote now!
Who Needs a TTB Bond for Drawback?
Under the provisions of 26 U.S.C. 5131, entities that intend to file a claim for allowance of tax payment drawback on distilled spirits used for the production of nonbeverage products must file a surety bond. This bond is a federal permit requirement through the TTB.
How Do TTB Drawback Bonds Work?
A TTB bond for drawback creates a legal contract between three parties:
- Principal: The producer/exporter of nonbeverage products
- Obligee: The TTB
- Surety: The bond underwriting company
As the principal, you will file the bond with the TTB pledging to meet payment obligations. If you fail to do so, the TTB can file a claim on the bond for reimbursement. However, you are ultimately responsible for repaying the surety for any claims paid out.
How to Get a TTB Drawback Bond
SuretyBonds.com offers the fastest and easiest way to get TTB bonds for drawback online. Just follow these three steps:
- Start your online application
- Select if you need an original, strengthening or superseding bond
- Enter personal and company information
We’ll review your application to provide your free, personalized quote within one business day. Once you pay your online bond invoice and e-sign your indemnity agreement, we’ll mail the original bond documentation to you. Remember to sign and file the bond with the TTB upon receipt.
