If you are a producer, importer, or wholesaler of extraction products that are alcohol beverages (i.e. 0.5 percent or more ABV and fit for beverage purposes) you may be subject to the permit, labeling, and advertising requirements of the FAA Act, depending on the classification of the alcohol beverage product.* The determination of whether an extraction product, that is an alcohol beverage, falls within the classification of a wine, malt beverage, or distilled spirits product under the FAA Act must be made on a case-by-case basis, depending on the formulation and method of production.
Some alcohol beverages are subject to tax as wine or beer but are not subject to the requirements of the FAA Act. For example, wine containing less than 7 percent alcohol by volume, and beer that is not made with both malted barley and hops, are exempt from the labeling requirements under the FAA Act and must comply with FDA labeling requirements, as well as the marking requirements of the Internal Revenue Code of 1986 (IRC), as amended.
* For more information on the FAA Act, see 27 U.S.C. 201, et seq.