When there was a shortage of disinfectant in March, hundreds of distilleries jumped in and made it themselves. In order to do so, they had to register as drug manufacturers, who had to pay user fees to the government annually.
Earlier this week, the U.S. Food and Drug Administration, an agency within the Department of Health and Human Services, demanded a fine of $ 15,000 from each of the distilleries, according to a senior HHS official.
But the department revoked the fine on Thursday, claiming it was inadvertently charged with distilling.
“Small businesses that have acted to fight Covid-19 should be applauded by their government, not taxed for it. I’m glad to announce that we have ordered the FDA to uphold this arbitrary, surprising user fee. strike, “said Brian Harrison, HHS’s chief of staff, in a statement.
“Happy New Year, distilleries and cheers to help you keep us safe!” he added.
Harrison said the distilleries were charged ‘accidentally’ and that the fees were not settled by the HHS leadership.
“Many of these are fairly small businesses, craft distilleries, and their business and livelihoods were damaged when restaurants closed,” he said. “But they started the fight and joined the fight against Covid. It was nothing short of heroic. They are American heroes.”
As the pandemic began earlier this year, the supply of hand sanitizers has declined as people gather to try to ward off the coronavirus.
To meet the increase in demand, some distillers have started using the alcohol in their facilities to create their own alcohol-based solutions. Some packed it in small bottles, while others encouraged people to bring their own containers for refilling.
“Due to the recent reports of interruptions and the low supply in our community, we have decided to provide hand sanitizer free of charge to anyone in need. Made with aloe vera gel and 95% ethanol,” said one company, Old Fourth Distillery in Atlanta. , said at the time.