DSP withdrawal bonds.
From $100.

The withdrawal bond the TTB can require from a distilled spirits plant under 27 CFR part 19, on TTB F 5110.56. It secures the excise tax on spirits withdrawn from bond before the tax is paid — deferred to a later return. Priced at 1% of the bond amount, $100 minimum — enter the penal sum TTB requires and your exact price appears at the application.

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Filed with the TTB on Form 5110.56 — covers spirits removed from bond on deferred tax

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Sized to the maximum deferred tax outstanding at one time for your return period

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1% of the bond amount, $100 minimum — the application collects no credit information — most applicants approve instantly

1% of bond amount$100 minimum, set by your bond amountNo credit reviewnot even a soft pullA-ratedA.M. Best carriers

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How it works

Three steps. One sitting.

No underwriting queue for a standard withdrawal bond — enter your penal sum, pay, and file with the TTB. Here is the whole thing:

TODAY · ONLINE

Apply online

Your plant details, the withdrawal penal sum TTB requires, and the effective date — that is the entire application.

INSTANTLY, USUALLY

Issued on the spot

Standard amounts issue as soon as you pay.

SAME DAY

File with the TTB

Submit the executed bond (TTB F 5110.56) with your DSP application. Wet-ink originals mailed whenever TTB insists.

About this bond

What it is and who needs it.

What the withdrawal bond actually covers

When a distilled spirits plant withdraws spirits from bond before paying the excise tax — deferring the tax to a periodic return — the TTB wants that deferred liability secured. The withdrawal bond on TTB F 5110.56 does that under 27 CFR part 19, subpart F, standing behind the tax that has accrued but not yet been paid.

It is distinct from the operations bond (which covers spirits still in bond at the plant) and the unit bond (which covers both operations and withdrawal in one). The penal sum is generally tied to the maximum deferred tax that could be outstanding at one time given your return period.

An important caveat: since January 1, 2017, 26 U.S.C. 5551(d) exempts proprietors who reasonably expect to owe no more than $50,000 in distilled spirits excise tax for the year (and owed no more than that the prior year) from furnishing a bond. If TTB has asked you for a withdrawal bond, or you fall outside that exemption, we issue it from $100.

27 CFR Part 19, Subpart F / TTB F 5110.56The distilled spirits withdrawal bond is filed on TTB F 5110.56 under 27 CFR part 19, subpart F, securing the deferred federal excise tax on spirits withdrawn from bond before payment, under 26 U.S.C. Chapter 51. The penal sum is generally tied to the maximum deferred tax outstanding at one time. Since January 1, 2017, 26 U.S.C. 5551(d) exempts proprietors expecting not more than $50,000 in excise tax for the year. Confirm your requirement and penal sum with TTB.

You need this bond if you are

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Withdrawing spirits on deferred tax from a distilled spirits plant TTB requires to be bonded

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Outside the small-producer exemption — expecting more than $50,000 a year in spirits excise tax

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Covering withdrawal separately rather than under a combined unit bond

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Replacing a superseding bond or restoring coverage after a surety non-renewed

One application, issued on the spot.

Enter the withdrawal penal sum TTB requires on Form 5110.56 — the executed bond is generated on payment, ready to file with the TTB.

Start the application →

FAQ

Common questions.

What does the withdrawal bond cover?The excise tax on spirits withdrawn from bond before the tax is paid — deferred to a later return. It secures that deferred liability until you settle it. The operations bond, by contrast, covers spirits still in bond at the plant.

How much is it?Premiums are 1% of the bond amount, with a $100 minimum. TTB generally sizes the penal sum to the maximum deferred tax that could be outstanding at one time. Enter that figure and the quote updates.

Do I even need a bond anymore?Maybe not. Since January 1, 2017, 26 U.S.C. 5551(d) exempts proprietors who reasonably expect to owe no more than $50,000 in distilled spirits excise tax for the year (and owed no more than that the prior year). If TTB has asked you for a bond, or you fall outside that exemption, we issue it.

Is there a credit check?The application collects no credit information. Most withdrawal bonds approve instantly.

Should I get a unit bond instead?A unit bond combines operations and withdrawal coverage in one filing, which can be simpler if you need both. If you only need to cover deferred withdrawals, the standalone withdrawal bond is the right form. Send us your situation and we will confirm.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Federal bonds.

DSP withdrawal bond, issued today.

Pricing from $100. Enter the penal sum TTB requires and file the same day.

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Your premiumfrom $100

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