AFP9

AFP

DSP

Authorized activities

• Receive and produce distilled spirits for the purposes of rendering them unfit for beverage use for fuel use.

• Receive and produce distilled spirits.
• Produce and warehouse beverage distilled spirits.
• Produce specially and completely denatured distilled spirits for industrial use.
• Produce tax-free distilled spirits.
• Manufacture articles.
• Receive wine on bonded premises.
• Receive beer/malt beverages on bonded premises.

Bond requirements

An AFP that produces and/or receives not more than 10,000 proof gallons of distilled spirits per year is not required to obtain a bond. However, an AFP without production operations that receives less than 10,000 proof gallons of distilled spirits per year must furnish a bond in accordance with 27 CFR 19.699. AFPs that produce and/or receive more than 10,000 proof gallons of distilled spirits per year are required to obtain a bond.

For more information see the FAQs pertaining to bonds.

Except as provided in 27 CFR 19.151(d), every person intending to establish a distilled spirits plant shall file a bond prescribed in 27 CFR part 19, subpart F.

Taxes

As long as fuel alcohol is produced in accordance with 27 CFR, part 19, subpart X, and used for fuel purposes, no taxes are due.

Unless the DSP withdraws the spirits on a non-taxpaid basis, a DSP owes taxes on distilled spirits withdrawn from bonded premises. Generally, the tax rate is $13.50 per proof gallon.