Permits Online Tutorials Part 1 DSP P3

TTB Form 5110.56, Distilled Spirits Plant Bond.  A bond is an insurance agreement pledging security for payment of taxes, including penalties and interest, for which you may become liable.

A beverage DSP must provide a bond if:

• Your tax liability for distilled spirits under one employer identification number (EIN) will exceed $50,000.00 this calendar year.
• Your tax liability for distilled spirits under one EIN exceeded $50,000.00 last calendar year.
• You will not pay excise taxes on a deferral basis (i.e., semi-monthly, quarterly or annually).
• You will be removing spirits for industrial use

TTB Form 5000.18 is needed if you are conducting additional operations that are not covered under your bond, such as alternation of premises or adding a non-contiguous location. 

NOTE: If you are not required to obtain a bond, a Change in Bond (Consent of Surety) form is not required either.

A variance request is letterhead notice (a statement written on company letterhead) requesting permission to use an alternate method or procedure in lieu of one outlined in the regulations.

You will need to describe, in detail, the proposed alternate method or procedure and the existing regulation to which it relates. 

You must also provide “good cause” for your request, such as when changing circumstances create a need for a different approach. 

If two or more proprietors with different EINs will be operating at the same premises and sharing space and/or equipment, you must provide the following documents:

The host and tenant of an alternating proprietorship is required to submit:

• An alternating proprietorship agreement (a contract between the host and tenant).
• A variance request for an alternate method or procedure from 27 CFR 19.141(b), so that the proprietor does not need to file a letterhead notice prior to each alternation.

When the same proprietor desires to alternate part of the premises to conduct another TTB- regulated business, such as a winery or distilled spirits plant, you must provide the following documents:

• A Change in Bond (Consent of Surety) form.

Note:  If you are not required to obtain a bond, a Change in Bond (Consent of Surety) form is not required either.

Suggested language is as follows:  This consent extends the terms of the bond identified above to cover the operations as an alternating premise between the DSP and (Winery or Brewery) operated by _________ at ___________, periodically suspending and resuming operations in accordance with procedures described in the registration.  This consent also covers the conveyance of spirits on which the tax has not been paid across (Winery or Brewery) Premises.”