TTB Issues Guidelines for Elimination of Bond Requirement

By Michael Kaiser, Director of Public Affairs

11.8.2016

The TTB has issued initial guidelines for the elimination of the bond requirement for certain alcohol producers. As part of the Fiscal Year 2016 Omnibus Appropriations Bill, wine producers that are expected to pay $50,000 or less in federal excise taxes in a year will be exempt from the federal bond requirement. The TTB was mandated by law to issue guidance on the new bonding rules by December 31. The guidance that was issued yesterday clarifies the procedures wine producers who qualify for the exemption will need to take in 2017. WineAmerica worked for the passage of the Fiscal Year 2016 Omnibus Appropriations Bill, and you can read our analysis of the provision here. 

The TTB has stated that existing producers who will meet the new bond exemption must inform the TTB they are eligible. Producers can start amending their permits to reflect the bond exemption after January 1, but they cannot do that until they have paid all of their 2016 federal excise taxes.  For NEW producers, if someone sends in a permit application before January 1, 2017 they will NOT be eligible for the bond exemption.
The TTB has updated the COLAs Online system to allow for easy amendment to existing permits. If wineries wish to amend their permits on paper, that is also an option.
WineAmerica expects to see more information about the bond exemption before the end of the year.
 For more information please contact Michael Kaiser, Director of Public Affairs, mkaiser@wineamerica.org

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WineAmerica is the national voice the American wine industry. Based in Washington, D.C., WineAmerica represents wineries in 43 states and leads a coalition of state and regional wine and grape associations. As an industry leader, WineAmerica encourages the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.

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