Oregon non-participating tobacco manufacturer bonds.
Quote on review.
A cigarette maker that has not signed the tobacco Master Settlement Agreement posts this bond under ORS 180.416 to keep its brands on the Attorney General’s directory. The penal sum is the greater of a $25,000 minimum bond or your largest quarterly payment in the last 12 quarters. A specialist quotes it, usually within one business day.
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How much does an Oregon non-participating tobacco manufacturer bond cost?
It is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
Posted before the quarter, filed with the DOJ.
The bond has to be in place at least 10 days before each calendar quarter, or the brands drop off the directory for that quarter. Here is the whole process, from sizing to filing:
Size it and send us the file
Find the largest escrow or equity-assessment payment due from the manufacturer, or its predecessor, in any of the last 12 calendar quarters, and enter the greater of that figure or $25,000. Add the manufacturer’s legal and DBA names, entity type, address, and owner and contact details.
A surety specialist quotes it
A specialist reviews the manufacturer and the amount requested and returns a premium quote. A large quarterly obligation, or a maker without U.S. financial statements, can bring a request for financials or collateral; if so, it arrives as one checklist.
Bind, sign & file
Once you bind, the executed bond arrives on the Oregon DOJ Nonparticipating Manufacturer Surety Bond form with the surety’s power of attorney attached. The DOJ takes filings electronically; submit it to the Tobacco Enforcement Unit and attach a copy to your directory certification.
What it is and who needs it.
What the Oregon NPM bond actually guarantees
Every tobacco product manufacturer selling cigarettes in Oregon either joins the 1998 Master Settlement Agreement or does not. ORS 180.405(7) defines a nonparticipating manufacturer (NPM) as any tobacco product manufacturer that is not a participating manufacturer. An NPM does not share in the settlement payments; instead it makes its own per-cigarette payments on its Oregon sales under ORS 323.804 or 323.806, and the Attorney General may require those payments in quarterly installments (ORS 180.445).
ORS 180.416 backs those payments with a bond. The NPM must post a bond for the benefit of the state, conditioned on fully complying with ORS 323.804 or 323.806, at least 10 days in advance of each calendar quarter, as a condition of the manufacturer and its brand families being included in the state directory for that quarter. Its annual certification to the Attorney General must state that the bond has been posted (ORS 180.415(4)). Without a directory listing, ORS 180.440(1)(a) bars anyone from affixing a stamp to its packs, which in practice closes the Oregon market to the brand.
How big the bond has to be. The penal sum is the greater of $25,000 or the largest escrow or equity-assessment payment due from the manufacturer, or its predecessor, in any of the 12 preceding calendar quarters. The DOJ’s 2026 compliance certificate works out to roughly 4.7 cents per cigarette, so one quarter’s payment passes $25,000 at about 527,000 cigarettes — some 26,000 packs of 20 — sold in Oregon that quarter. Above that volume the bond grows with your biggest quarter, and a rising sales curve can call for an increase before the next quarter begins.
What the surety stands behind. If a quarter’s deposits or payments are not made in full within 15 days after the due date, the Attorney General may execute on the bond for the amount still owed, including penalties and other charges; anything above the bond remains due from the manufacturer and any liable importer. The bond must come from a surety company licensed and authorized to do business in Oregon. The DOJ form runs continuously from its effective date until the surety withdraws, and a withdrawal takes effect only 30 days after the Tobacco Enforcement Unit receives written notice — a short window to replace it before the next quarter’s deadline.
You need this bond if you’re
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
Term and renewal are set in the underwriter's quote.
Keep the bond in force for as long as the obligation behind it runs.
How to file it
Bind, sign & file. Once you bind, the executed bond arrives on the Oregon DOJ Nonparticipating Manufacturer Surety Bond form with the surety’s power of attorney attached. The DOJ takes filings electronically; submit it to the Tobacco Enforcement Unit and attach a copy to your directory certification.
What sets the price
This bond is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
One application, one underwriting review.
These are the actual fields — the bond amount you need, the effective date, the manufacturer’s legal and DBA names, entity type, address, and owner and contact details. Submit once and a surety specialist returns your quote, typically within one business day. Free until issued.
Start the application →Common questions.
Other Oregon bonds.
Requirements checked on the carrier’s application, . Page updated .
Keep your brands on the Oregon directory.
Tell us the amount, get a specialist quote in about a business day, and file a bond on the DOJ’s own form before the quarter deadline. Free until issued.
