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California — Tobacco Manufacturer And Importer Bond

California's JUS-TOB14 manufacturer/importer bond has separate directory and sovereign-immunity conditions. Identify which condition the Attorney General requires before arranging the bond; this is not the ordinary distributor tax-security form.

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Recorded state
California
Bond type
Cigarette / Tobacco Tax Bond
Category
Business operations & taxes

What this bond does

Newly qualified nonparticipating manufacturers need a bond to enter California's Tobacco Directory, as do those the Attorney General determines pose an elevated risk. Separately, a manufacturer or importer may post a bond instead of the required sovereign-immunity waiver. Signing a waiver does not remove an independent directory bond requirement.

Who needs it
Cigarette manufacturers and importers responding to the Attorney General's directory or sovereign-immunity requirements. An importer undertaking joint and several responsibility for a nonparticipating manufacturer should identify that relationship and the applicable condition.
Who it protects
California is the obligee. The directory condition covers the nonparticipating manufacturer's or responsible importer's escrow duties and penalties, directory obligations including fees, costs, attorney's fees and removal-related refunds, and covered state cigarette/tobacco taxes for the certification year and next calendar year. The immunity-alternative condition covers all duties under the Licensing Act, the specified escrow law, Part 13 cigarette/tobacco tax law and implementing regulations. It protects the State's covered claims, not the manufacturer's trading losses.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for California manufacturers and importers

The current directory security provision is Revenue and Taxation Code section 30165.1(c)(6). The posted model and older regulation use an earlier paragraph number. Have the Attorney General identify the required box or boxes on JUS-TOB14. Business and Professions Code section 22979(a)(4) separately provides the bond alternative to the sovereign-immunity waiver.

The amount is the greater of $50,000 or the escrow required from the largest of the manufacturer's most recent five calendar years' California sales, including its predecessor form. For the immunity-alternative route, the statute also refers to the manufacturer or importer. Have the Attorney General confirm the applicant-specific calculation and any interaction between required instruments; do not automatically add two minimums or apply an offset yourself.

The current directory statute defines newly qualified by absence from the Directory during the last twelve months and provides for security for the next three years of listing, or longer for elevated risk. That is not an automatic three-year bond cancellation. JUS-TOB14 continues until withdrawal, caps the surety's accumulated aggregate at the penal sum, and requires sixty days' advance registered-mail notice to the Attorney General's Tobacco Litigation and Enforcement Section, counting from the day after receipt. Existing obligations remain protected through the applicable limitation period even if a cause of action has not yet accrued.

Match the legal licensed name and actual business address. The model gives entity-specific principal signatures; a corporation uses its President or Vice President, seal and Secretary or Assistant Secretary attestation. The authorized surety signer supplies its title, seal, acknowledgment and original or certified authority. Follow current Attorney General filing directions; the selected model directs the completed bond to the Tobacco Litigation and Enforcement Section.

Purchase Now opens Propeller's California Tobacco Manufacturer and Importer application in a new tab. Confirm the requested legal basis, sum, applicant and effective date before completing it. Keep issuance separate from Attorney General acceptance, directory listing, licensing, required escrow deposits and any separate distributor tax security.

Sources

Have these ready

  1. Attorney General notice identifying directory security, the immunity alternative or both conditions.
  2. Exact licensed manufacturer/importer name, business address and responsible importer relationship.
  3. Relevant current/predecessor California sales and escrow history for the required calculation.
  4. Current JUS-TOB14 instructions, effective date, entity signatures and surety authority.
  5. Separate directory certifications, licensing and escrow requirements.

Questions about this bond

Must every manufacturer buy this bond instead of signing a waiver?

The licensing law provides a sovereign-immunity waiver or bond alternative. A newly qualified or elevated-risk nonparticipating manufacturer also has a separate directory bond requirement; a waiver does not satisfy that requirement. Match the Attorney General's actual direction.

Is the amount always $50,000?

No. That is the floor in a greater-of calculation using the applicable largest escrow requirement from the most recent five calendar years' California sales. Have the Attorney General confirm the required applicant-specific amount.

Does a three-year directory requirement mean a three-year automatic expiry?

No. The posted bond is continuing, with its own sixty-day registered-notice withdrawal provision and protection for existing obligations. The statutory period for maintaining security and the bond's cancellation procedure are different.

Does this replace my distributor tax security or escrow deposits?

Do not assume it does. JUS-TOB14 covers the selected manufacturer/importer obligations. Keep any separately required distributor security, directory filing and escrow deposit arrangements unless the responsible authority confirms how they are satisfied.

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