FDA charges fee to US food importers

According to Benjamin England at FDAImports.com, starting 1 October 2011, FDA will charge food importers $224 per hour to ‘re-examine’ imported food shipments suspected of a food safety violation - potentially costing importers thousands of dollars per entry.

As per its Federal Register notice, this new fee will create a tax-like burden on food importers, most of whom are small businesses, according to the FDA.

American consumers may feel the effect of these new fees.

Food importing and distribution has a small price margin, especially compared to other commodities, such as cosmetics or dietary supplements. Thus, the importers are likely to pass these new expenses onto their purchaser, who will pass it on to consumers.

According to Benjamin L England, Founder and CEO of FDAImports.com, “These fees amount to a hidden food tax on American consumers. This is no small thing as roughly 20% of the US food supply is imported, including 70% of seafood and 35% of fresh produce.”

According to the Food Safety Modernization Act, the FDA can adjust the imported food re-examination fees, but it must issue regulations to do so. The FDA, in its 1 August Federal Register notice, requested comments on the issue whether to grant waivers or fee reductions to small businesses. The company opened the comment period until 31 October - 30 days after the new examination fees go into effect.

In the meantime, according to FDA, small businesses can expect to receive invoices from them starting on 1 October for the full fee amount. An importer can attempt to appeal the fee and plead for a waiver or reduction - however, no mechanism exists for that appeal.

According to England, “The appeal will likely fall on deaf ears considering FDA will have done the work already, created the invoice and mailed it to the importer or foreign manufacturer, and will be expecting (even salivating over) collection of the fee.”

England is currently organising a coalition of food manufacturers and importers to oppose these fees and to speak as a unified voice against the new fee tax. England reminds small businesses, “Making yourself heard on the impact of these fees is critical and time sensitive.”