26 U.S.C. § 5173: Bonds

Except as provided under section 5551(d), no person intending to establish a distilled spirits plant may commence operations at such plant unless such person has furnished bond covering operations at such plant. Except as provided under section 5551(d), no distilled spirits (other than distilled spirits withdrawn under section 5214 or 7510) may be withdrawn from bonded premises except on payment of tax unless the proprietor of the bonded premises has furnished bond covering such withdrawal. The bond covers operations at a single distilled spirits plant. The bond covers operations at a distilled spirits plant and at an adjacent bonded wine cellar. are located in the same geographical area (as designated in regulations prescribed by the Secretary), and are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries). The bond required by paragraph (2) of subsection (a) shall cover withdrawals from 1 or more bonded premises the operations at which could be covered by the same operations bond under subsection (b). Under regulations prescribed by the Secretary, the requirements of paragraphs (1) and (2) of subsection (a) shall be treated as met by a unit bond which covers both operations at, and withdrawals from, 1 or more bonded premises which could be covered by the same operations bond under subsection (b). will faithfully comply with all provisions of law and regulations relating to the activities covered by such bond, and all taxes imposed by this chapter, and all penalties incurred by, or fines imposed on, such person for violation of any such provision. Any bond furnished under this section shall contain such other terms and conditions as may be required by regulations prescribed by the Secretary. The penal sum of any bond shall be the amount determined under regulations prescribed by the Secretary. The Secretary shall by regulations prescribe a minimum amount and a maximum amount for each type of bond which may be furnished under this section. The total amount of any bond furnished under this section shall be available for the satisfaction of any liability incurred under the terms and conditions of such bond. such bond shall be in addition to the operations bond, and if distilled spirits are withdrawn under such bond, the operations bond shall no longer cover liability for payment of the tax on the spirits withdrawn. such distilled spirits plant is qualified under this subchapter for the production of distilled spirits, and such wine cellar and the distilled spirits plant are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries). In the case of any adjacent wine cellar, a bond furnished under this section which covers operations at such wine cellar shall be in lieu of any bond which would otherwise be required under section 5354 with respect to such wine cellar (other than supplemental bonds required under the second sentence of section 5354).