Cigarettes Distributing Agent Bond - Statewide in Florida

Brief Summary

A Florida cigarette distributing agent never owns the cigarettes it stores, yet it still posts a tax bond before the CDA permit is issued. The bond is filed on Form DBPR ABT-6032 with the Distributing Agent box checked, starts at $2,000 and rises with your estimated tax liability. A surety bond meets the requirement without tying up the full amount in a certificate of deposit.

Fla. Stat. 210.08 requires every cigarette distributing agent to file a surety bond, certificate of deposit or irrevocable letter of credit with the Division of Alcoholic Beverages and Tobacco equal to 110 percent of the estimated tax liability for 30 days, and never less than $2,000. The bond is part of the application for a Cigarette Distributing Agent (CDA) permit under Fla. Stat. 210.15.

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How to Apply for a Cigarettes Distributing Agent Bond:

• Estimate 30 days of cigarette tax liability for the product you will store. The bond is 110 percent of that figure, minimum $2,000.
• Complete Form DBPR ABT-6024, the wholesale cigarette permit application, for the CDA permit type.
• File fingerprints for the applicant and interested persons.
• Pay the $100 permit fee.
• Sign Form DBPR ABT-6032 with the Distributing Agent box checked and attach the surety agent's certified power of attorney.

Detailed Information About the Florida Cigarettes Distributing Agent Bond:

What a distributing agent is

Fla. Stat. 210.01 defines a distributing agent as a person or company in Florida that acts as agent for another by receiving cigarettes in interstate or intrastate commerce and storing them for distribution or delivery, on the principal's order, to wholesale dealers and other distributing agents. The division's bond schedule describes the CDA permit as public warehousing. Under Fla. Stat. 210.085 a distributing agent may accept cigarettes from a permitted manufacturer or importer for transfer to a permitted dealer, but may not own or sell cigarettes.

Not owning the product does not remove the bond

This is where applicants go wrong. Section 210.08 names the distributing agent alongside dealers and agents: each must file a bond, certificate of deposit or irrevocable letter of credit acceptable to the division. The amount is 110 percent of the estimated tax liability for 30 days, with a $2,000 minimum. The division's bond schedule lists the CDA amount as $2,000 to unlimited, so there is no fixed ceiling.

The permit around the bond

Fla. Stat. 210.15 requires a cigarette permit for each place of business in Florida. The original fee is $100, permits remain in force until the July 1 following issuance, and renewal costs $100 on or before July 1. Applicants must be of good moral character and at least 21, and fingerprints are filed before a distributing agent permit is approved. The division's application package adds that CDA applicants may not hold or have an interest in a Florida wholesale dealer (CWD), exporter, manufacturer or importer permit.

Bond form and cancellation

Use Form DBPR ABT-6032 with the Distributing Agent box checked, naming the State of Florida, Division of Alcoholic Beverages and Tobacco. The surety may cancel by giving the division sixty days written notice and remains liable for the principal's acts through the cancellation date. Confirm the estimated liability figure with your ABT auditing district office before the bond is issued, since that number sets the bond amount.

Eligibility and Requirements for a Florida Cigarettes Distributing Agent Bond:

• Surety bond, certificate of deposit or irrevocable letter of credit acceptable to the division under Fla. Stat. 210.08.
• Amount of 110 percent of estimated 30 day tax liability, never less than $2,000.
• Obligee: State of Florida, Division of Alcoholic Beverages and Tobacco.
• No ownership or sale of cigarettes by the distributing agent, per Fla. Stat. 210.085.
• No interest in a Florida CWD, exporter, manufacturer or importer permit.
• Annual permit renewal of $100 on or before July 1.

Florida Cigarettes Distributing Agent Bond FAQs:

Official and Additional Resources for the Florida Cigarettes Distributing Agent Bond: