- Last Reviewed: 09/05/2018 | FAQ #AFP11
Frequently Asked Questions (FAQs): Alcohol Fuel Plant (AFP) and Fuel Alcohol
Are there bond requirements for AFPs?
Yes, there are bond requirements for AFPs, except for small AFPs with production operations.
Under 26 U.S.C. 5181, bonds are required for AFPs except AFPs that produce distilled spirits exclusively for fuel use and do not produce more than 10,000 proof gallons per year. TTB's regulations define a small AFP as a plant that produces (including receives) not more than 10,000 proof gallons of spirits per calendar year. Because 26 U.S.C. 5181 exempts certain AFPs from bond requirements only if they actually produce spirits, a bond is required for small AFPs without production operations. The penal sum of the bond is prescribed in 27 CFR 19.700.
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Page last reviewed: September 12, 2018
Page last updated: September 13, 2018
Maintained by: Regulations and Rulings Division