We use taxpaid 190 proof ethyl alcohol, do not claim drawback, and are not registered with TTB. Is this legal?
Registration is only required if you want to file claims for nonbeverage drawback. Furthermore, if drawback is not claimed, you are not required to comply with recordkeeping requirements of the nonbeverage drawback regulations. There are however disadvantages for your company if you do not claim nonbeverage drawback.