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Bond - Operations vs. Withdrawal


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In the bond application phase of our journey...

It appears that we should file a for a Unit Bond to include Operations and Withdrawal coverage? Is that correct? Also, if anyone has any advice on calculating operations coverage vs. withdrawal coverage, that would also be helpful.

Thank you!!!

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Operations covers all spirits in production, storage, and processing. You calculate that on your PGs produced, PG's in storage, and PG's in processing. $13.50 * PG gives you that total. The maximum bond you need for operations is $250K

Withdrawal is the amount you actually withdrawal from the bonded premises - spirits shipped to a distributor or to your tasting room. Same formula.

You obviously need wiggle room for both, but there's no need to get a bond that's cost prohibitive if you know you will not come close to those numbers.

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I would love to discuss the finer points of all of this with you if you would like to get in contact with me. I have issued out over 4 dozen bonds over the period of the last several weeks and probably know more than anyone really should about this process. Feel free to PM me or give me a call on my cell phone at 307-752-5961 if you would like some assistance in getting this taken care of.

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