[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR26.66]

[Page 737-738]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 26_LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS--Table of 
 
       Subpart E_Taxpayment of Liquors and Articles in Puerto Rico
 
Sec.  26.66  Bond, TTB Form 5110.50--Distilled spirits.

    (a) General. If any person intends to ship to the United States, 
distilled spirits products of Puerto Rican manufacture from bonded 
storage in Puerto Rico on computation, but before payment, of the tax 
imposed by 26 U.S.C. 7652(a), equal to the tax imposed in the United 
States by 26 U.S.C. 5001(a)(1), he shall, before making any such 
shipment, furnish a bond TTB Form 5110.50, for each premises from which 
shipment will be made, to secure payment of such tax, at the time and in 
the manner prescribed in this subpart, on all distilled spirits products 
shipped. The bond shall be executed in a penal sum not less than the 
amount of unpaid tax which, at any one time, is chargeable against the 
bond. The penal sum of such bond shall not exceed $1,000,000, but in no 
case shall the penal sum be less than $1,000.

[[Page 738]]

    (b) Blanket bond. Any person who is the proprietor of more than one 
premises in Puerto Rico from which shipment of spirits to the United 
States will be made, may, in lieu of furnishing two or more separate 
bonds on TTB Form 5110.50 as required by paragraph (a) of this section, 
furnish a blanket bond on TTB Form 5110.50. The penal sum of such 
blanket bond shall be equal to the sum of the penal sums of all the 
bonds in lieu of which it is given. Such blanket bond on TTB Form 
5110.50 shall show each bonded warehouse and/or bonded processing room 
and/or rectifying plant to be covered by the bond, and the part of the 
total penal sum (computed in accordance with paragraph (a) of this 
section) to be allocated to each of the designated premises. If the 
penal sum of the bond allocated to a designated premises is in an amount 
less than the maximum prescribed in paragraph (a) of this section, 
transactions at such premises shall not exceed the quantity permissible, 
as reflected by the penal sum allocated in the bond to such premises. 
Such blanket bond shall contain the terms and conditions of the bonds in 
lieu of which it is given and shall be conditioned that the total amount 
of the bond shall be available for satisfaction of any liability 
incurred under the terms and conditions of such bond.

(Act of August 16, 1954, 68A Stat. 847, as amended, 907, as amended (26 
U.S.C 7101, 7102, 7652))

[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979]