[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR25.93]

[Page 651]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 25_BEER--Table of Contents
 
                 Subpart H_Bonds and Consents of Surety
 
Sec. 25.93  Penal sum of bond.

    (a) Calculation. The penal sum of the brewer's bond will be equal to 
10 percent of the maximum amount of tax, calculated at the rates 
prescribed by law, which the brewer will become liable to pay during a 
calendar year during the period of the bond on beer:
    (1) Removed for transfer to the brewery from other breweries owned 
by the same brewer;
    (2) Removed without payment of tax for export or for use as supplies 
on vessels and aircraft;
    (3) Removed without payment of tax for use in research, development, 
or testing; and
    (4) Removed for consumption or sale.
    (b) Concentrate. A brewer who concentrates beer under subpart R of 
this part shall calculate the penal sum of the bond by computing 10 
percent of the amount of tax at the rates prescribed by law, on the 
maximum quantity of beer used in the production of concentrate during a 
calendar year. The brewer shall add this amount to the penal sum 
calculated under paragraph (a) of this section to determine the total 
penal sum of the brewer's bond.
    (c) Maximum and minimum penal sums. The maximum penal sum of the 
bond (or total penal sum if original and strengthening bonds are filed) 
is not to exceed $150,000 when the tax on beer is to be prepaid, or 
$500,000 when the tax is to be deferred as provided in Sec. 25.164. The 
minimum penal sum of a bond is $1,000.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))