During a time of worldwide recession, US food importers, most of them small businesses, will soon find themselves affected by additional costs caused by FDA’s new fees for re-examining imported foods, according to Benjamin England, founder and CEO of FDAImports.com. Starting October 1, 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.
American consumers will certainly feel the effect of these new fees as well, says England. 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 purchasers, who will ultimately pass it on to consumers. According to England, “these fees amount to a hidden food tax on American consumers. This is no small thing as roughly 20 percent of the US food supply is imported, including 70 percent of seafood and 35 percent of fresh produce.” (See “Import Safety: Status of FDA’s Screening Efforts at the Border.”)