- Last Reviewed: 09/05/2018 | FAQ #AFP12
Frequently Asked Questions (FAQs): Alcohol Fuel Plant (AFP) and Fuel Alcohol
Do AFPs of different sizes require bonds of different amounts?
Yes. Medium and large AFPs are required to obtain a bond. The bond amount is dependent on the quantity of spirits that the AFP will produce and/or receive in a calendar year.
In accordance with §§ 19.675 and 19.676, a bond of sufficient sum, as prescribed in § 19.700, is required for medium and large AFPs. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted and approved before a permit is issued. The permit application (including the bond form) may be completed using TTB’s Permits Online system.
The terms and conditions of a bond state that that the person furnishing the bond will faithfully comply with all provisions of law and regulations relating to the activities covered by the bond, and will pay all taxes imposed by the IRC and all penalties incurred or fines imposed for violations of any such provision of the IRC relating to the activity covered by the bond.
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Page last reviewed: September 12, 2018
Page last updated: September 13, 2018
Maintained by: Regulations and Rulings Division