FDA DELAYS START OF FSMA ,FOOD FACILITY RE-REGISTRATION
Domestic and foreign food facilities are advised to take this extra time to select an appropriate US Agent. Brokers are advised to seek out partners for and alternatives to taking on this increased liability.
The Food & Drug Administration (FDA) announced last week that the mandatory re-registration period for registered food facilities was temporarily delayed. Sources at the FDA indicate that the re-registration process will likely be available in mid-October.
Under Food Safety Modernization Act (FSMA) §102, domestic and foreign food facilities registered with the FDA are required to renew their registration every two years, beginning in 2012. The initial renewal period was scheduled to begin on Monday October 1, and run through December 31, 2012. However, late on Friday, September 28, the FDA announced that the renewal period was delayed. Although the FDA gave no specific reason for the temporary deferment, it is believed to be the result of technical issues with the updated database.
Foreign food facilities affected by the new registration renewal requirements are reminded that the FSMA also imposes new burdens and potential liabilities on U.S. Agents. One of these liabilities stems from the re-inspection fees permissible under FSMA §107, which allows the FDA to hold the U.S. Agent financially liable for the payment of fees incurred in the re-inspection of a food facility, as well as associated travel costs. The FDA expects to charge $289/hour for time spent in foreign facility re-inspections — resulting in the potential for invoices to U.S. Agents to range anywhere from $3,000 to more than $75,000 per re-inspection. As a result of this increase in potential exposure, many who have served as U.S. Agent in the past are no longer offering this service, leaving foreign food facilities to seek out new U.S. Agents.
This brief renewal registration delay provides an opportunity for all foreign facilities to consider who to designate as U.S. Agent. U.S. Agents should also use these two weeks to evaluate the liabilities imposed under the new regulatory regime imposed by FSMA.
We will send information regarding the new opening date for re-registration as it becomes available from the FDA.
Information for New Registrants:
Even though re- registration is delayed, the FDA is currently accepting initial registrations for foreign and domestic facilities that manufacture, store or pack food, and who have not previously registered with the FDA.
SHIPPING INDUSTRY TAKES A GLASS-HALF-FULL APPROACH
THE SHIPPING INDUSTRY KEEPS TANKING
Prominent companies are avoiding investors conferences. And with a glut of vessels and scant demand, carriers talk more about scrapping ships than sailing then.
The industry’s saving grace may lie partly in its ability to diversify. Companies specialized in a vast array of sectors,some of which respond less to a Eurozone crisis or Middle East sanctions. Crude oil and dry bulk shipments make up the market powerhouses, but smaller sectors remain viable because they serve niche functions.
Ships that carry container goods, for example, have had more luck in recent years than oil tankers. Altered driving habits coupled with the rise of more fuel-efficient cars have reduced the need for oil shipments to the United States.Container shipping companies have taken a hit from decreased consumption, but shoppers still purchase, only now they’re buying from Target rather than Nordstrom.