1. “Cottage cosmetics operation” means a natural person:
(a) Who manufactures or prepares cosmetics in his or her private home or in a kitchen that is not otherwise required by law to be inspected for the purposes of preparing a cosmetic, for sale to a natural person; and
(b) Whose gross sales of such cosmetics are not more than $100,000 per year.
2. The term does not include an operation that engages in the manufacturing or processing of any of the products described in 21 U.S.C. § 364h(b).