DSP operations bonds.
From $100. Enter your amount.

The operations bond the TTB can require from a single distilled spirits plant (DSP) under 27 CFR part 19, subpart F, on TTB F 5110.56. It covers the excise tax on spirits held in bond at your plant. 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 — operations coverage for one distilled spirits plant

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Covers spirits in bond at the plant before the federal excise tax is paid

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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

Apply to filed in one sitting.

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

TODAY · ONLINE

Apply online

Your plant details, the operations 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. Larger penal sums may get a quick soft-pull review, which never affects your credit score.

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 operations bond actually covers

A distilled spirits plant holds spirits in bond — before the federal excise tax is paid. The operations bond on TTB F 5110.56 secures the tax on spirits at the plant while they are in storage and processing, under 27 CFR part 19, subpart F. This version covers a single plant.

The operations bond is distinct from the withdrawal bond (which covers tax on spirits removed before payment) and the unit bond (which covers both together). You file the coverage your operation needs; TTB sets the penal sum based on the maximum tax that could be outstanding at one time.

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. Many small DSPs no longer need one. If TTB has asked you for a bond, or you fall outside that exemption, we issue it from $100.

27 CFR Part 19, Subpart F / TTB F 5110.56TTB regulations at 27 CFR part 19, subpart F govern bonds for distilled spirits plants, filed on TTB F 5110.56, securing the federal excise tax under 26 U.S.C. Chapter 51. The operations bond covers spirits in bond at the plant. Since January 1, 2017, 26 U.S.C. 5551(d) exempts proprietors expecting not more than $50,000 in excise tax for the year (and liable for not more than that the prior year). Confirm whether a bond is required, and the penal sum, with TTB.

You need this bond if you are

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Qualifying a distilled spirits plant that TTB requires to be bonded under 27 CFR part 19

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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 one plant rather than an area or a unit (single-plant operations coverage)

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

One application, issued on the spot.

Enter the operations 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.

How much is the DSP operations bond?Premiums are 1% of the bond amount, with a $100 minimum. TTB sets the penal sum based on the maximum spirits tax that could be outstanding at your plant at one time. Enter that figure and the quote updates.

Do I even need a DSP 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). Many small DSPs are exempt. If TTB has asked you for a bond, or you fall outside that exemption, we issue it.

How is this different from a withdrawal or unit bond?The operations bond covers spirits in bond at the plant; the withdrawal bond covers tax on spirits removed before payment; the unit bond covers both together. File the coverage your operation needs.

Is there a credit check?The application collects no credit information. Most operations bonds approve instantly; if a check does run, it’s a soft pull that never affects your credit score.

Where do I file it?With the TTB, as part of your distilled spirits plant application or to keep current coverage on file. We issue the executed bond on TTB F 5110.56, ready to submit.

Related bonds

Other Federal bonds.

DSP operations bond, issued today.

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

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