Tobacco Bond--Collateral, Tobacco Bond--Surety, and Tobacco Bond

To protect the revenue, the Internal Revenue Code (IRC) at 26 U.S.C. 5711 requires every person, before commencing business as a manufacturer of tobacco products or cigarette papers and tubes, or as an export warehouse proprietor, to file a bond in the amount, form, and manner prescribed by the Secretary by regulation. Also, the IRC at 26 U.S.C. 7101 requires that such bonds be guaranteed by a surety company or by the deposit of collateral in the form of United States Treasury bonds or notes. Under those IRC authorities, TTB has issued tobacco bond regulations in 27 CFR parts 40 and 44 for manufacturers and export warehouse proprietors, respectively. Those regulations require the prescribed persons to file a collateral or surety bond with TTB in an amount equivalent to their potential excise tax liability, within a minimum and a maximum amount. The regulations also require a strengthening bond when the amount of an existing bond is found to be insufficient and require a superseding bond when a current bond is no longer valid for reasons specified in the regulations. The regulations specify that respondents provide a collateral bond using form TTB F 5000.25 or a surety bond using TTB F 5000.26, or they may use TTB F 5200.29 for either type of bond as an approved alternate procedure.

The latest form for Tobacco Bond--Collateral, Tobacco Bond--Surety, and Tobacco Bond expires 2028-06-30 and can be found here.

Tobacco Bond--Collateral

Federal Enterprise Architecture: General Government - Taxation Management

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