Federal tobacco bonds.
From $100. Enter your amount.
The bond a manufacturer of tobacco products files with the TTB before commencing business under 27 CFR 40.66, on TTB F 5200.29 (a blanket bond on 5200.25/26 covers multiple factories). It secures the federal tobacco excise tax. 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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Apply to filed in one sitting.
No underwriting queue for a standard tobacco bond — enter your penal sum, pay, and file with the TTB. Here is the whole thing:
Apply online
Your factory details, the penal sum TTB requires, and the effective date — that is the entire application.
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.
File with the TTB
Submit the executed bond (TTB F 5200.29) with your permit application — you may not commence business until TTB approves it. Wet-ink originals mailed when needed.
What it is and who needs it.
What the tobacco bond actually covers
A manufacturer of tobacco products must file a bond with the TTB before commencing business, in connection with the permit application, under 27 CFR 40.66. The bond secures the federal excise tax on the tobacco products the manufacturer makes and removes under 26 U.S.C. Chapter 52. The standard form is TTB F 5200.29; a manufacturer operating more than one factory may file a blanket bond on TTB F 5200.25 or 5200.26 instead of separate bonds.
TTB sets the penal sum based on the maximum tax that could be unpaid at one time given your expected production and removals. The bond stands behind that liability, guaranteeing the manufacturer faithfully follows the law and pays the tax, interest, and penalties.
An important caveat: since January 1, 2017, 26 U.S.C. 5551(d) extends a similar bond exemption to tobacco manufacturers who reasonably expect to owe no more than $50,000 in tobacco excise tax for the year (and owed no more than that the prior year). Many small manufacturers may be exempt. If TTB has asked you for a bond, or you fall outside that exemption, we issue it from $100.
You need this bond if you are
One application, issued on the spot.
Enter the penal sum TTB requires on TTB F 5200.29 — the executed bond is generated on payment, ready to file with your permit application.
Start the application →Common questions.
Other Federal bonds.
Tobacco bond, issued today.
Pricing from $100. Enter the penal sum TTB requires and file the same day.