The History and Function of the Federal Brewers Bond in Arizona

The production and sale of most alcoholic beverages is heavily regulated and taxed in the United States, and this is not likely to change anytime soon. While the laws surrounding small-scale production of beer were loosened up in the late 1970s, those who wish to delve into commercial activities must still abide by the same regulations that have prevailed for many decades.

One reason for the continuation of this level of oversight is to ensure that an important source of tax revenue does not run dry for federal and state-level authorities. Another is because improper procedures and precautions can result in dangers for consumers, from the tainting of an occasional batch to potentially lethal problems like the introduction into beer, wine, or spirits of methanol. Acquiring a Federal Brewers Bond in Arizona is an basic requirement of business for anyone who wishes to engage in the commercial production of beer within the state. Fortunately, it does not need to be difficult to do.

Contact Southwest Bond Services and it will become clear, in fact, that the typical process is quite straightforward. As with similar kinds of financial instruments, a federal brewers bond in Arizona is meant to ensure that companies which are required to post it have a definite financial incentive to abide by certain laws and regulations. Failing to live up to these obligations will often leave the bond forfeit, causing real financial harm to the business, as a result.

Acquiring a bond of this kind typically involves working with a bond-writing company that will have plenty of experience in such matters. Normally, a fair bit of information regarding the business to be bonded will need to be provided, so that the bond-issuing service can understand the risks it is taking on. Some sum of money will then need to be handed over in order to back the bond itself, with this typically being a significant fraction of the bond’s face value. Beyond that, it is also to be expected that further expense will be incurred in order to compensate the issuer of the bond, with only money of the former kind being refundable if the bond should ever be withdrawn.

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