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Title 26 — Internal Revenue CodeRelease 119-73

§5711 Bond

Title 26 › Subtitle Subtitle E— Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter 52— TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES › Subchapter B— Qualification Requirements for Manufacturers and Importers of Tobacco Products and Cigarette Papers and Tubes, and Export Warehouse Proprietors › § 5711

Last updated Apr 6, 2026|Official source

Summary

Before starting business, every manufacturer of tobacco products or cigarette papers and tubes, and every export warehouse proprietor, must file a bond, a financial guarantee of compliance with the tax rules, in the form and amount the government prescribes. You cannot operate until your bond is approved, and the government can require a new or bigger bond, reject a bond, or cancel one (with notice) whenever it decides the bond is not enough to protect tax revenue.

Full Legal Text

Title 26, §5711

Internal Revenue Code — Source: USLM XML via OLRC

(a)Every person, before commencing business as a manufacturer of tobacco products or cigarette papers and tubes, or as an export warehouse proprietor, shall file such bond, conditioned upon compliance with this chapter and regulations issued thereunder, in such form, amount, and manner as the Secretary shall by regulation prescribe. A new or additional bond may be required whenever the Secretary considers such action necessary for the protection of the revenue.
(b)No person shall engage in such business until he receives notice of approval of such bond. A bond may be disapproved, upon notice to the principal on the bond, if the Secretary determines that the bond is not adequate to protect the revenue.
(c)Any bond filed hereunder may be canceled, upon notice to the principal on the bond, whenever the Secretary determines that the bond no longer adequately protects the revenue.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1965—Subsec. (a). Pub. L. 89–44 struck out reference to dealers in tobacco materials. 1958—Subsec. (a). Pub. L. 85–859 included export warehouse proprietors, and substituted “manufacturer of tobacco products or cigarette papers and tubes” for “manufacturer of articles”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1965 AmendmentAmendment by Pub. L. 89–44 applicable on and after January 1, 1966, see section 701(d) of Pub. L. 89–44, set out as a note under section 5701 of this title.

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–859 effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as an

Effective Date

note under section 5001 of this title. Transitional Rule Pub. L. 111–3, title VII, § 702(g), Feb. 4, 2009, 123 Stat. 111, provided that: “Any person who— “(1) on April 1, 2009[,] is engaged in business as a manufacturer of processed tobacco or as an importer of processed tobacco, and “(2) before the end of the 90-day period beginning on such date, submits an application under subchapter B of chapter 52 of such Code [this subchapter] to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 [this chapter] shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 5711

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73