What are some of the main differences between an AFP and a DSP?
Though an AFP is a type of DSP, there are significant differences between the two types of plants. The main difference is the activities that are authorized at each; but there are also differences in qualification, bonding, and recordkeeping. The following table contains examples of some of the differences between an AFP and a typical DSP. This table is only intended to provide a broad overview of said differences. For more details on the differences, please see TTB G 2011-1.
Alcohol fuel plant and distilled spirits plant comparison
| AFP | DSP | |
|---|---|---|
| Authorized activities |
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| Bond requirements | An AFP that produces and/or receives not more than 10,000 proof gallons of distilled spirits per year is not required to obtain a bond. However, an AFP without production operations that receives less than 10,000 proof gallons of distilled spirits per year must furnish a bond in accordance with 27 CFR 19.699. AFPs that produce and/or receive more than 10,000 proof gallons of distilled spirits per year are required to obtain a bond. For more information see the FAQs pertaining to bonds. | Except as provided in 27 CFR 19.151(d), every person intending to establish a distilled spirits plant shall file a bond prescribed in 27 CFR part 19, subpart F. |
| Taxes | As long as fuel alcohol is produced in accordance with 27 CFR, part 19, subpart X, and used for fuel purposes, no taxes are due. | Unless the DSP withdraws the spirits on a non-taxpaid basis, a DSP owes taxes on distilled spirits withdrawn from bonded premises. Generally, the tax rate is $13.50 per proof gallon. |
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