The California Tobacco Manufacturer and Importer Surety Bond is required by the California Department of Justice, Office of the Attorney General.
In order to do business in California, tobacco manufacturers and importers must be issued a surety bond that is greater than $50,000 or the amount of escrow the manufacturer was required to deposit as a result of the largest of the most recent five calendar years’ sales. The California Tobacco Manufacturer and Importer Surety Bond guarantees that you will pay all taxes and fees from the manufacturing and sale of your tobacco products as required by the Attorney General or the Board of Equalization.
This bond ensures to the Board of Equalization and Attorney General that after you have been given a license to operate, that you will pay all sales tax, claims placed on the bond and unsatisfied escrow obligations. The California Tobacco Manufacturer and Importer Surety Bond must be written for and in favor of the people and the State of California to ensure that all parties who engage in business with the tobacco manufacturer/importer are protected. This type of bond is based off of personal credit because it is ensuring payment.