What it is not
On this page12
It is not a safety finding
Unfit for beverage purposes is not a statement that a product is dangerous, and fit for beverage use is not a statement that one is safe. Different question entirely.
It is not a permission to sell
Approval for drawback is approval to recover excise tax. Whether a product may be sold is governed elsewhere and by other bodies.
It is not a packaging rule
There is nothing in the sentence about containers, closures, fill volumes or labels. That absence is the whole reason this property quotes it.
And it is not a cannabis rule
Part 17 concerns distilled spirits used in nonbeverage products. Whether a cannabis or CBD preparation is in its scope is not addressed here and should not be inferred.
Which leaves a narrow but real use
It is the cleanest federal example of a standard applied to a formula with the package entirely out of the picture, and a tincture maker working with alcohol will meet it.
The alcohol is the connection
A tincture is an alcohol extract, which is what puts a maker in the neighborhood of a spirits tax question in the first place.
And one of our five leaves is not an alcohol extract
An MCT blend is an oil. Which changes the question completely and is covered on its own page.
State law is not touched either
Several things about these products differ state by state, and a federal tax provision says nothing about any of it.
So treat this property as two halves
A rule the container cannot affect, stated precisely, and a shelf described precisely. The two do not meet, and that is the finding.
One more thing it is not
A claim about alcohol content. The sentence sets no percentage and names no threshold, so a maker cannot read a strength off it either way.
The container half is where we are useful
Dose, light, closure fit and case size. Four real decisions with measured numbers behind them.