---
kind: "section"
citation: "27 C.F.R. § 19.170"
title: "27"
number: "19.170"
heading: "Termination of bonds."
url: "https://uscodex.org/cfr/27/19.170"
---

# §19.170. Termination of bonds.


Liability under operations bonds, withdrawal bonds, and unit bonds may be terminated for future withdrawals, future production, or future deposits as set forth below:

- (a) **On application by the surety.** A surety may terminate a bond by filing a notice as provided in [§ 19.171](/cfr/27/19.171.md);
- (b) **By replacement of the bond.** A principal may terminate an existing bond by replacing it with a superseding bond approved by TTB;
- (c) **By discontinuing withdrawals.** A principal may terminate a withdrawal bond by notifying TTB that the principal has stopped making withdrawals covered by the bond, if the bond was filed solely as a withdrawal bond;
- (d) **By discontinuing the business.** A principal may terminate a bond by notifying TTB that the principal has discontinued business; and
- (e) **On application by an existing proprietor who becomes exempt from bond requirements.** If a proprietor has held a bond or bonds covering operations or withdrawals of distilled spirits for nonindustrial use and becomes exempt from those bond requirements as provided under [§ 19.151(d)](/cfr/27/19.151.md?p=d), the proprietor may apply to TTB to terminate the bond or bonds covering such operations or withdrawals. To apply, the proprietor must file an amendment to TTB F 5110.41, Registration of Distilled Spirits Plant, as provided in [§ 19.136](/cfr/27/19.136.md). The proprietor must accurately state in the submission that the proprietor:
  - (1) Will withdraw distilled spirits for deferred payment of tax as provided in [§ 19.235](/cfr/27/19.235.md);
  - (2) Reasonably expects to be liable for not more than $50,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. [5001](/usc/26/5001.md) and [7652](/usc/26/7652.md) for the current calendar year (see definition of “Reasonably expects” in [§ 19.235(e)](/cfr/27/19.235.md?p=e)); and
  - (3) **Was liable for not more than $50,000 in such taxes in the preceding calendar year.**

## Notes

### Amendments

[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]

### Authority

Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114, 5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

### Source

Source: T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, unless otherwise noted.

### Amendments

[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]