Fuel Tax (Exporter) Bond - Statewide in Alabama

Brief Summary

The Alabama exporter bond is sized to your own tax exposure, not a flat state figure. The Department of Revenue fixes it at the greater of $2,000 or roughly twice your average monthly motor fuel excise tax liability, which means many exporters who buy Alabama tax paid fuel and ship it out of state post only the $2,000 floor. Once the Department tells you the amount, the bond is quoted quickly and the premium is a fraction of the penal sum.

Alabama requires a surety bond from every exporter's license applicant under Code of Ala. 40-17-335. The amount is the greater of $2,000 or approximately twice the average monthly motor fuel excise tax liability, with no stated ceiling for exporters. The bond runs to the State of Alabama on Department of Revenue form B&L: BOND, and the exporter's license itself carries a $100 fee under 40-17-332.

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How to Apply for a Fuel Tax (Exporter) Bond:

• Get the bond amount from the Department of Revenue first. It is the greater of $2,000 or about twice your average monthly motor fuel excise tax liability.
• Confirm you need an exporter's license. A licensed Alabama supplier exports under the supplier's license and posts no separate exporter bond.
• Legal entity name, FEIN and business address exactly as shown on the motor fuel license application.
• Owner or officer name, home address and Social Security number for the surety's credit review.
• Complete the bond application, review the premium and pay it.
• Have the surety execute Department of Revenue form B&L: BOND with the exporter box marked and the State of Alabama as obligee, then file it with the Business and License Tax Division, Motor Fuels Section, at P.O. Box 327540, Montgomery, AL 36132-7540, along with the $100 exporter's license fee.
• Keep the bond continuous. A cancellation notice from the surety starts a 60 day clock to replace it or lose the license.

Detailed Information About the Alabama Fuel Tax (Exporter) Bond:

Start with the amount, because it is a formula

Code of Ala. 40-17-335 sets the bond for an exporter, blender, importer or distributor at a minimum of $2,000 or the approximate amount of twice the average monthly tax liability, whichever is greater. An exporter whose average monthly Alabama excise tax liability is small posts $2,000. One whose average monthly liability runs $40,000 should expect a bond near $80,000. The $2,000,000 ceiling in the same section applies only to suppliers, permissive suppliers and terminal operators, so there is no stated cap for an exporter.

The Department of Revenue fixes the figure from the information on your license application, including the modes of transportation you use and the destination states and license numbers you report. Wait for the Department's number before ordering the bond.

Who needs an exporter's license

Code of Ala. 40-17-322 defines an exporter simply as a person who exports motor fuel. Under 40-17-332(d), any exporter other than a licensed supplier who exports products to another state must first obtain an exporter's license before any exports. The fee for the exporter's license is $100. A licensed Alabama supplier does not need a separate exporter's license or a separate exporter bond.

One bond can cover several licenses

If you also hold or are applying for an importer's, blender's or distributor's license, only one bond is required, sized to the highest average monthly tax liability among the separate licenses. A motor fuel transporter's license, which many exporters also need to haul their own product, carries no bond at all.

Form, obligee and alternatives

The prescribed form is Department of Revenue form B&L: BOND, titled Motor Fuels Surety Bond, with the State of Alabama as obligee. The same form serves terminal operators, suppliers, permissive suppliers, distributors, importers, exporters and blenders, so make sure the exporter box is marked. The bond is conditioned on filing accurate reports and paying all tax, penalty and interest due under Title 40, Chapter 17, Articles 12 and 12A. Ala. Admin. Code 810-8-1-.29 lets a licensee deposit certified funds with the Department in the bond amount instead of posting a surety bond.

After you are licensed

The Department can demand an additional bond if the surety becomes unsatisfactory, the surety gives notice of cancellation, or the Department decides the existing bond no longer covers the tax exposure. Any additional bond cannot exceed two months of average excise tax owed. If a surety cancels, 40-17-335 as amended by 2026 Senate Bill 86 gives the licensee 60 days from the date the Department mails notice to file a replacement bond or appeal to the Alabama Tax Tribunal before the license is cancelled.

Eligibility and Requirements for a Alabama Fuel Tax (Exporter) Bond:

• A surety company authorized to write bonds in Alabama.
• Penal sum fixed by the Department of Revenue under Code of Ala. 40-17-335: the greater of $2,000 or approximately twice the average monthly tax liability.
• State of Alabama named as obligee on form B&L: BOND, Motor Fuels Surety Bond.
• Bond conditioned on filing accurate reports and paying all tax, penalty and interest due under Title 40, Chapter 17, Articles 12 and 12A.
• Principal name on the bond matching the exporter's license application exactly.
• Owner credit review. At the $2,000 floor most applicants are approved on credit alone. Larger penal sums may bring a request for financial statements.

Alabama Fuel Tax (Exporter) Bond FAQs:

Official and Additional Resources for the Alabama Fuel Tax (Exporter) Bond: