(a) Except as provided in paragraph (b) of this section, a person must obtain an operating permit under the IRC in order to:

1. (1) Distill for industrial use;
2. (2) Warehouse spirits for industrial use;
3. (3) Denature spirits;
4. (4) Warehouse spirits (without bottling) for nonindustrial use;
5. (5) Bottle or package spirits for industrial use;
6. (6) Manufacture articles; or
7. (7) Engage in any other distilling, warehousing, or processing operation not required to be covered by a basic permit under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203, 204).

(b) Exception. The requirement to obtain an operating permit does not apply to an agency of a State, or political subdivision of a State, or an officer or employee of, and acting for, such an agency.

(26 U.S.C. 5171, 5271)