The council released a statement, infuriated that distillers would have to pay thousands of dollars after stepping up to produce hand sanitizer, which was in high demand but short supply early in the pandemic.
“This incredibly frustrating news comes as a complete shock to the more than 800 distilleries across the country that came to the aid of their local communities and first responders. This unexpected fee serves to punish already struggling distilleries who jumped in at a time of need to do the right thing,” said Distilled Spirits Council President and CEO Chris Swonger.
“Everyone was totally blindsided by FDA’s announcement and as a result, craft distillers across the country are scrambling to understand and respond. Given all that’s happened in 2020, the timing of this news could not be worse. The $14,000 fee being assessed could certainly put many of these small family owned businesses out of business, Phil McDaniel, CEO of St. Augustine Distillery and Chair
SPOKANE, Wash. When the pandemic hit the U.S. in early 2020, many distilleries around the country rushed to produce hand sanitizer after local stores saw major shortages. However, it turns out that move ended up drawing a hefty fee from the FDA.Â
Over 800 distilleries around the U.S. began temporarily producing hand sanitizer when the pandemic began, and now the Food and Drug Administration says those distilleries have to pay a fee of $14,060 as a part of the newly established OTC monograph drug user fee program .Â
On top of the initial fee, distilleries will also be responsible for a $9,373 Contract Manufacturing Organization Facility Fee. The fees are due by February 11, 2021, giving the distilleries just over one month to hand over the cash.
SPOKANE, Wash. When the pandemic hit the U.S. in early 2020, many distilleries around the country rushed to produce hand sanitizer after local stores saw major shortages. However, it turns out that move ended up drawing a hefty fee from the FDA.Â
Over 800 distilleries around the U.S. began temporarily producing hand sanitizer when the pandemic began, and now the Food and Drug Administration says those distilleries have to pay a fee of $14,060 as a part of the newly established OTC monograph drug user fee program .Â
On top of the initial fee, distilleries will also be responsible for a $9,373 Contract Manufacturing Organization Facility Fee. The fees are due by February 11, 2021, giving the distilleries just over one month to hand over the cash.
FDA Foolishly Smacks Struggling Distillers With $14,000 Fee For Producing Hand Sanitizer
FDA Foolishly Smacks Struggling Distillers With $14,000 Fee For Producing Hand Sanitizer
(UPDATE) The FDA has backed down from this fee collection program after being told to do so by the federal Department of Health & Human Services. Read more on this latest development here.
Editor’s Note: It is our strong opinion here at The Whiskey Wash that this is a startling poor call on the part of the FDA at a time when these distilleries stepped up to do a decidedly public service. We call upon the government agency to rescind this fee described below immediately.