§ 5173 Bonds

OLRC 119-134 · eCFR 2026-10-19 · 4 amending Acts · cited by 4 sections

Enacted 1958 · Pub. L. 85-859 Amended · 4 Acts

19581971197619792015(a) Operations at, and withdrawals from, distilled spirits plant must be covered by bond(b) Operations bonds(c) Withdrawal bonds(d) Unit bonds(e) Terms and conditions(f) Amount(g) Total amount available(h) Special rules
Prior provisions 3
  • A prior section 5173, act Aug. 16, 1954, ch. 736, 68A Stat. 628, related to “distillery fixtures and equipment”, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5178(a)(1)(A), (2)(B)(C), (c)(1) and 5202(b) of this title.
  • Provisions similar to those comprising subsecs. (a), (b), (b)(1), (b)(1)(A) to (C), (b)(3), (c), (c)(1), (d) and (e)(1) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85–859, as follows: Present subsecs.:Prior sections (a)5172, 5176(a), 5231, 5232(a), 5272(a), 5301–5303, 5304(a)(5), 5305, 5311(a)(3). (b)5176 (a), (d). (b)(1)5176(a), 5177(c). (b)(1)(A)–(C)5177(b)(1)–(3). (b)(3)5177(b)(4). (c)5232(a), 5302, 5303, 5306, 5331(a)(3). (c)(1)5232(a). (d)5272(a). (e)(1)5304(a)(5).
  • The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 627, 629 to 631, 643, 650, 654, 655, 657, 662.
Connections Cited by 4 · Cites 3
§ 5173 Bonds
Amended 1976, 1979
  • 1979 Pub. L. 96-39 Pub. L. 96–39, among other changes, struck out provisions relating to liens on distillery property and the furnishing of indemnity bonds as methods of securing tax payments and inserted provisions relating to the one plant operations bond, which will cover the operations at a bonded wine cellar which is adjacent to the distilled spirits plant and operated by the same person.
  • 1976 Pub. L. 94-455 Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Cases: United States v. Fidelity & Deposit Co., 10 F.3d 1150 (5th Cir. 1994); United States v. Johnson, 434 F.2d 816 (6th Cir. 1970)

(a) Operations at, and withdrawals from, distilled spirits plant must be covered by bond

Cited by 5

    (1) Operations Except as provided under section 5551(d), no person intending to establish a distilled spirits plant may commence operations at such plant unless such person has furnished bond covering operations at such plant.

    Amended 2015
    • 2015 Pub. L. 114-113 Pub. L. 114–113, § 332(b)(2)(A)(i), substituted “Except as provided under section 5551(d), no person” for “No person”.
    Cited by 4

      (2) Withdrawals Except as provided under section 5551(d), no distilled spirits (other than distilled spirits withdrawn under section 5214 or 7510) may be withdrawn from bonded premises except on payment of tax unless the proprietor of the bonded premises has furnished bond covering such withdrawal.

      Amended 2015
      • 2015 Pub. L. 114-113 Pub. L. 114–113, § 332(b)(2)(A)(ii), substituted “Except as provided under section 5551(d), no distilled spirits” for “No distilled spirits”.
      Cited by 2

        (b) Operations bonds The bond required by paragraph (1) of subsection (a) shall meet the requirements of paragraph (1), (2), or (3) of this subsection:

        Amended 1971
        Cited by 2

          (1) One plant bond The bond covers operations at a single distilled spirits plant.

          Amended 1971
          • 1971 Pub. L. 91-659 Pub. L. 91–659, § 4(b), extended exception clause in parenthetical by making reference to cl. (4) of this subsection.
          Cited by 1

            (2) Adjacent wine cellar bond The bond covers operations at a distilled spirits plant and at an adjacent bonded wine cellar.

            Amended 1971
            • 1971 Pub. L. 91-659 Pub. L. 91–659, § 4(c), inserted reference to par. (4).
            Cited by 1

              (3) Area bond The bond covers operations at 2 or more distilled spirits plants (and adjacent bonded wine cellars) which—

              Cited by 1

                (A) are located in the same geographical area (as designated in regulations prescribed by the Secretary), and

                (B) are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries).

                (c) Withdrawal bonds The bond required by paragraph (2) of subsection (a) shall cover withdrawals from 1 or more bonded premises the operations at which could be covered by the same operations bond under subsection (b).

                (d) Unit bonds Under regulations prescribed by the Secretary, the requirements of paragraphs (1) and (2) of subsection (a) shall be treated as met by a unit bond which covers both operations at, and withdrawals from, 1 or more bonded premises which could be covered by the same operations bond under subsection (b).

                (e) Terms and conditions

                (1) In general Any bond furnished under this section shall be conditioned that the person furnishing the bond—

                (A) will faithfully comply with all provisions of law and regulations relating to the activities covered by such bond, and

                (B) will pay—

                (i) all taxes imposed by this chapter, and

                (ii) all penalties incurred by, or fines imposed on, such person for violation of any such provision.

                (2) Other terms and conditions Any bond furnished under this section shall contain such other terms and conditions as may be required by regulations prescribed by the Secretary.

                (f) Amount

                (1) In general The penal sum of any bond shall be the amount determined under regulations prescribed by the Secretary.

                (2) Maximum and minimum amount The Secretary shall by regulations prescribe a minimum amount and a maximum amount for each type of bond which may be furnished under this section.

                (g) Total amount available The total amount of any bond furnished under this section shall be available for the satisfaction of any liability incurred under the terms and conditions of such bond.

                (h) Special rules For purposes of this section—

                (1) Withdrawal bonds In the case of any bond furnished under this section which covers withdrawals but not operations—

                (A) such bond shall be in addition to the operations bond, and

                (B) if distilled spirits are withdrawn under such bond, the operations bond shall no longer cover liability for payment of the tax on the spirits withdrawn.

                (2) Adjacent wine cellars

                (A) Requirements No wine cellar shall be treated as being adjacent to a distilled spirits plant unless—

                (i) such distilled spirits plant is qualified under this subchapter for the production of distilled spirits, and

                (ii) such wine cellar and the distilled spirits plant are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries).

                (B) Bond in lieu of wine cellar bond In the case of any adjacent wine cellar, a bond furnished under this section which covers operations at such wine cellar shall be in lieu of any bond which would otherwise be required under section 5354 with respect to such wine cellar (other than supplemental bonds required under the second sentence of section 5354).