Legal ramifications of "water distiller"

[bcubed]

Dunno if this belongs in "law+order" or "alcohol," but here goes. Also note that SWIM's smarter than to engage in a legally questionable activity w/o qualified legal advice, though he does value informed input.

SWIM is interested in some quick cash, and notices that a still can be built easily and sell for much more than the cost of materials.

SWIM further researched and found that "water distillers" ARE legal in his country of origin (1 gallon max) and even sold on a large internet auction site. SWIM intends to manufacture these devices and sell them as "legal to distill water" (true) "legal to make a renewable fuel source for your automobile from plants such as corn, with appropriate license" (also true).

These devices will be the legal 1 gallon, but easily convertible for those with appropriate license into 15.5 gallon stills. SWIM is hoping for the same loophole that allows SOME "tobacco-smoking devices" sold in his hometown.

Can SWIM get away with this? How come my local shop can sell smoking stuff but Mr Chong can't? Did he make the mistake of openly admitting to their "dark side?"

EDIT: SWIM's new bright idea is to ask said shop for legal reference: he figures they MUST have somone behind the scenes telling them just where the line is and how not to cross it.