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New FDA Regulations and Fees Impacting Customs Brokers, Freight
Forwarders and Imported Food
Presented by Russell K. Statman, Esq.
Executive Director, Registrar Corp October 2011
FSMAEnacted by Congress and signed into law by President Obama on January 4, 2011
FSM
FSM
FSMA Amends the Food, Drug and Cosmetic Act
Intended to Modernize U.S. Food Safety System, including stricter controls on imported food
Implemented in Phases through January 2016
Timeline handout provided by Registrar Corp
FSM
New FSMA “User Fees”
Effective October 1, 2011
May be Charged to:
Importers
Food Manufacturers
“U.S. Agents”
FSMA Reinspection Fees
May be charged to the facility’s designated “U.S. Agent”
That could be YOU ----- if you have been designated as the “U.S. Agent” by a foreign food facility’s FDA registration
United States Agent
* * * *
United States Agent
United States Agent
Foreign food facilities designate their U.S. Agent under the regulation when they first register with FDA
The U.S. Agent is designated in Section 7 of the registration form
Typically, registration and designation is performed electronically through the FDA's FFRM (Food Facility Registration Module)
United States Agent
U.S. Agents have been designated since 2003, and foreign companies have not had to update that information since the initial designation
Since 2003, many customs brokers and importers have allowed foreign companies to designate them as the required “U.S. Agent”
FSM
FSMA Amends the Food, Drug and Cosmetic Act to Impose New Fees
Latest Developments
Latest Developments
FDA Hourly Rate For Reinspections and Reconditioning: $224 per hour, domestic
$325 per hour if foreign travel is required
“Reinspection” Fees
Fee is based on the number of direct hours, including:
time spent conducting the physical surveillance at the facility,
whatever components of such an inspection are deemed necessary
making preparations and arrangements for the reinspection
“Reinspection” Fees
Also includes time incurred: Traveling preparing any reports, analyzing any samples examining any labels if required performing other activities until the facility is in compliance.
FSMA Foreign Facility Inspection Schedule
2011- 600 Foreign inspections
2012- 1,200 Foreign Inspections
2013- 2,400 Foreign Inspections
2014- 4,800 Foreign Inspections
2015- 9,600 Foreign Inspections
2016- 19,200 Foreign Inspections
Reconditioning Fees
Will be charged where reconditioning is required to bring food into compliance
Fees must be paid by owner of food or importer, depending on circumstances
Fees must be paid at the hourly rate ($224/$325)
Reconditioning Fees
Reconditioning fees include: Arranging for, conducting and reviewing tests of the reconditioned product
Examinations of labeling All time incurred by FDA in evaluating the reconditioning proposal and reconditioned product
Fees Related to Import Alerts (DWPE)
Will be charged where food is detained by an Import Alert (DWPE) and proof is offered to show that the shipment is not adulterated.
Fees Related to Import Alerts (DWPE)
Exporters applying for removal from DWPE must pay FDA's hourly charges for evaluating the application, including the cost of inspecting the foreign facility if necessary.
New FDA User Fees
Not Complying with a Recall Order
Not initiating a recall as ordered by FDA
Not conducting the recall in the manner specified by FDA
Not providing FDA with information regarding the recall as ordered by FDA.
Other Recent Changes By FSMA Affecting Customs Brokers, Freight Forwarders and
Importers
FSM
Prior Notice Filers need to indicate whether a food product
has been refused entry to another country
Registration Suspension
FDA may suspend the registration of food facilities (effectively closing them from the U.S. market)
Registration may be held in suspension until FDA determines that no further health consequences exist.
FDA may require “corrective action plans”
Looking Ahead December 22, 2011. Importers will be required to establish programs to verify the safety of all shipments of imported food .
June 20, 2012. FDA may establish a Qualified Importer program.
October-December 2012. Facility Registration and renewal.
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