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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
The Alabama importer bond is usually the largest of the four low tier motor fuel bonds because importers carry real excise tax exposure on every truckload that crosses the line. The Department of Revenue fixes it at the greater of $2,000 or roughly twice your average monthly motor fuel excise tax liability, so the number tracks your volume. Once the Department sets the amount, the bond is quoted quickly and the premium is a fraction of the penal sum rather than cash parked with the state.
Alabama requires a surety bond from every importer'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 importers. The bond runs to the State of Alabama on Department of Revenue form B&L: BOND, and the importer's license itself carries a $100 fee under 40-17-332.
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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 importer bringing in a few loads a month on which the Alabama excise tax is small posts $2,000. An importer whose average monthly excise tax liability is $100,000 should expect the Department to fix the bond near $200,000. 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 importer.
The Department of Revenue fixes the figure from the estimated volumes on your license application. The Department's own instructions for the motor fuel license application restate the rule for importers: the bond is $2,000 or an amount equal to twice the average monthly tax liability, whichever is greater, and monthly returns are required. Wait for the Department's number before ordering the bond.
Code of Ala. 40-17-322 defines an importer as a person who imports motor fuel into this state. Under 40-17-332(f), each person other than a licensed supplier who causes motor fuel to be delivered into Alabama on his or her behalf, for his or her own account, or for resale to a purchaser in this state from another state in a fuel transport truck or railcar must apply for and obtain an importer's license. The fee is $100. A licensed Alabama supplier does not need a separate importer's license or a separate importer bond, and fuel moving inside the bulk transfer terminal system by pipeline or vessel is handled under the supplier rules rather than the importer's license.
If you also hold or are applying for an exporter'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 an importer hauling its own loads also needs, carries no bond at all.
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 importer 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.
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.
There is no single figure. Code of Ala. 40-17-335 sets it at the greater of $2,000 or approximately twice the average monthly motor fuel excise tax liability. The Department of Revenue fixes the amount from the volumes on your license application. The more fuel you bring in by truck or railcar, the higher the bond.
The statute states no ceiling for importers, exporters, blenders or distributors. The $2,000,000 cap in 40-17-335 applies only to suppliers, permissive suppliers and terminal operators.
The license fee is $100 under Code of Ala. 40-17-332(f). The bond premium is separate and is set by the surety based on the penal sum and your credit.
The importer's license in 40-17-332(f) covers motor fuel delivered into Alabama from another state in a fuel transport truck or railcar by someone other than a licensed supplier. Product moving within the bulk transfer terminal system falls under the supplier and terminal operator licenses, which carry their own bond rules.
No. Only one bond is required of an applicant for multiple licenses, and it is based on the highest average monthly tax liability among the separate licenses. The B&L: BOND form lets you mark each license type the bond covers.
Yes. Ala. Admin. Code 810-8-1-.29 allows a licensee required to post a bond under 40-17-335 to deposit certified funds with the Department equal to the bond amount. Most importers prefer the surety bond because the premium is a small fraction of the amount the deposit would tie up.
The surety may be released from liability accruing after 30 days of written notice. The Department will then notify you, and under 40-17-335 you have 60 days from the date that notice is mailed to file a replacement bond or appeal to the Alabama Tax Tribunal. Miss that window and the importer's license is cancelled.
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