(a) Except as provided in paragraph (b) of this section, a person must obtain an operating permit under the IRC in order to:
(1) Distill for industrial use;
(2) Warehouse spirits for industrial use;
(3) Denature spirits;
(4) Warehouse spirits (without bottling) for nonindustrial use;
(5) Bottle or package spirits for industrial use;
(6) Manufacture articles; or
(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.