Puerto Rico Alcohol Tax Surety Bonds

Businesses in Puerto Rico's alcohol industry must file an application with the TTB (Alcohol and Tobacco Tax and Trade Bureau) and receive approval before beginning operations. This includes alcohol producers and manufacturers, importers, exporters and wholesalers, plus alcohol users and dealers. A part of the application process involved obtaining an alcohol tax surety bond for the use and consumption of alcoholic beverages.

What is an Alcohol Surety Bond?

A surety bond is a legal contract between three entities. It guarantees that taxes collected on alcohol sales plus any fines, interests and penalties will be paid to the Commonwealth of Puerto Rico. If the business were to fail to comply with the bond terms, the government can make a claim on the bond to recover any unpaid taxes or fines. The three parties involved in a surety bond are:

• The Principal- In the case of alcohol bonds, this is the business or individual who manufactures, sells or wholesales alcohol and is responsible for obtaining the bond.
• The Obligee- The entity that requires a bond. In Puerto Rico, the obligee is the Commonwealth of Puerto Rico, Secretary of Treasury.
• The Surety- The Surety company that writes and guarantees the bond, such as SuretyGroup.com.

Bond to Guarantee the Payment of Taxes, Fines, Interest and Penalties on Articles for Use and Consumption or Alcoholic Beverages.

How Much Will This Bond Cost?

The premium that you pay for a Puerto Rico Alcoholic Tax Surety Bond is dependent on credit and the bond amount required. Rates for bond amounts under $10,000 start at $100 with good credit. Premiums for bond amounts over $10,000 start at 1% with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

The TTB has an online tutorial to help applicants better understand the application process.

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