Customs Brokers and Importers Acting as U.S. Agents Face New Financial Risks Under FSMA

Oct 15, 2012 | Food, Food Safety Modernization Act, Law & Regulatory

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Customs brokers and importers who act as U.S. Agents on behalf of their foreign food manufacturing suppliers now face a new financial risk under the Food Safety Modernization Act.  Before FSMA there was no such thing as an inspection fee for a foreign facility that might become subject to a reinspection.  Now, FDA reinspections will incur a $289/hour (foreign reinspection fee) charge from FDA. FDA expects to use these charges to generate $25 million per year in “user fees,” according to a 2011 FDA guidance FAQ.

So what exactly is the bad news for customs brokers and importers? Customs brokers, importers and registrar companies who act as the U.S. Agent for a foreign food facility that happens to be subject to an FDA reinspection could become liable for the reinspection fee for that foreign inspection if the foreign facility fails to pay it.

This is a significant financial risk that many customs brokers acting as U.S. Agents before FDA probably do not know and probably have not prepared for contractually.  FSMA grants FDA this authority to charge the U.S. Agent even if otherwise that person does not have any financial interest in the foreign company or the imported goods.

It’s important for all U.S. Agents, whether customs brokers, food importers or registrar services, to properly protect themselves now if they’re going to continue to serve as U.S. Agents for foreign food facilities. And now is the time to act when registered food facilities are also required to renew their registrations for the first time. FDA will treat any facility registration renewal appointing the broker or importer as the U.S. Agent as a confirmation that you are ready for this new, expensive liability under FSMA. The U.S. government will pursue the fee as a federal claim in federal district court — and it could easily exceed $100,000 per foreign inspection. Wow. Watch out.

Source
www.fda.gov/Food/FoodSafety/FSMA/ucm257982.htm

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