On October 1st, 2011, FDA will implement a new fee/examination structure that will radically affect the cost of food importing, food prices and the overall burden on taxpayers. This new structure (tax) will require every significant food import with a questionable food safety issue to be “examined” by FDA and then undergo an expensive re-examination process in order for that shipment to be released; Even if there was no problem with the shipment whatsoever. The reason is because FDA is cleverly defining the first “free examination” as merely data-retrieval. It’s not an examination at all. The real examination is the second look (or third, or fourth) and that’s where the big bill comes in for the importer. In addition to the immense burden of fees and testing that the manufacturer will have to bear, there are numerous moments in the process where the American taxpayer will be footing the bill for this entire plan.
After flagging (Err, “examining”) a shipment as a potential food safety issue, FDA will then process the importer’s re-examination fee invoice (spend taxpayers’ money), mail the invoice (spend taxpayers’ money), monitor the account (spend taxpayers’ money) send follow-up notices (spend taxpayers’ money) set up a petition process (spend taxpayers’ money) and then leave the small business with the choice of paying the full fee or begging (using an undefined process) for the fee to be reduced or waived. At that point the small business must suffer FDA’s review and final decision (which taxpayers will pay for), receive it in a letter (which taxpayers will pay to send) and be left with no appeal mechanism. Let the good times roll!
Regarding a potential fee reduction, small businesses do not usually receive them based upon the factors FDA cites in the Federal Register. Rather, they are based upon the fact that the firms are small businesses and paying the fee would put them out of business. The best part is that the manufacturer will receive the invoice from FDA weeks later- possibly up to 2 months after the fact! Merry Christmas One and All!
FDA’s new fee and examination structure will generate serious dollars for the government. The manufacturers will pay for it as a result of the increased inspection fees, the importers will pay for it as a result of increased overhead, American taxpayers will pay for it in their tax dollars and the average American consumer will pay for it as they see the cost of their food inch slowly higher and higher.
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