When the Covid-19 pandemic first occurred in the United States, many distilleries sprang up and began manufacturing hand disinfectant products, a product that was much needed in both homes and hospitals to protect against the coronavirus. It is understandable that these businesses – many of which have already suffered financially due to a decline in sales – were shocked when the Food and Drug Administration (FDA) issued notices informing them that they are now classified as manufacturers of prescription drugs without prescription and debt an amount of $ 14,060 payable on February 11th.
Fortunately for the distillers, the Department of Health and Human Services (HHS) issued a statement this week directing the FDA not to enforce the fee.
Reason discussed the story in a general article and called the threatened regulatory fee a crushing blow to these small businesses that have been ‘one of their worst years ever’. More than 800 U.S. distilleries have manufactured hand sanitizers in the past year, and many have sold them at a narrow or non-existent profit margin or even donated large quantities to hospitals, first responders and essential workers.
Aaron Bergh, president of Calwise Spirits in Paso Robles, California, tells Reason that his company manufactures 5,000 liters of hand sanitizer, which puts medical staff and other workers at the forefront.
“Some of my hand sanitizers were donated,” Bergh said. ‘The rest were sold at a fraction of the market price. My goal was to pull out as much as possible, at as low a price as I could, while bringing my employers back. The hand sanitizer industry saved me from bankruptcy – but I did not make a huge profit. ‘
HHS Chief of Staff Brian Harrison the fee reversal announced in a statement posted on Twitter.
“Small businesses that have acted to fight COVID-19 should be applauded by their government and not taxed for it,” Harrison said. ‘I’m pleased to announce that we have ordered the FDA to stop enforcing these arbitrary, surprising user fees. Happy New Year, distilleries and cheers to help you keep us safe! ”
A lengthy statement from HHS condemned the actions of the FDA as a legislative rule that “was not approved by the HHS leadership”, and based on their legal investigation, void because “no one at the FDA was given the power to do so. to issue a rule. “
The distillers were naturally enlightened by the news.
“The FDA’s announcement at the beginning of this week would wipe out our profits from the holiday season,” Bergh said, calling it a “New Year’s wonder.” However, Bergh noted that they are still concerned about whether the government will try again to impose the fee next year for any disinfectant they made in 2021.
Watch the video above via MSNBC.
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