Distillers had been shocked this week to be taught they might be charged 1000’s after stepping up throughout the COVID-19 pandemic, however now they’re off the hook.
Editor’s observe: The video above by KTHV aired earlier than the announcement that the charge could be forgiven.
The Division of Well being and Human Companies announced Thursday it won’t require distilleries that stepped as much as make hand sanitizer throughout the COVID-19 pandemic to pay 1000’s of {dollars} in shock charges. There was concern that the charge might pressure the closure of some small distilleries.
The Distilled Spirits Council said Thursday that distilleries and different services that produced hand sanitizer had been shocked to be taught of the charge on Tuesday from the Meals and Drug Administration.
USA TODAY reports that below the CARES Act handed in March, there was a non-prescription drug coverage that made distilleries that produced hand sanitizer “over-the-counter drug monograph facilities.” Beneath the CARES Act, these services had been required to pay charges below the monograph drug person charge program.
These included the $14,060 Monograph Drug Facility Charge and a $9,373 Contract Manufacturing Group Facility Charge. These charges had been set to return due on Feb. 11, 2021, in accordance with the Distilled Spirits Council.
The council launched an announcement, infuriated that distillers must pay 1000’s of {dollars} after stepping as much as produce hand sanitizer, which was in excessive demand however brief provide early within the pandemic.
“This extremely irritating information comes as an entire shock to the greater than 800 distilleries throughout the nation that got here to assistance from their native communities and first responders. This surprising charge serves to punish already struggling distilleries who jumped in at a time of must do the best factor,” stated Distilled Spirits Council President and CEO Chris Swonger.
“Everybody was completely blindsided by FDA’s announcement and in consequence, craft distillers throughout the nation are scrambling to grasp and reply. Given all that’s occurred in 2020, the timing of this information couldn’t be worse. The $14,000 charge being assessed might actually put many of those small household owned companies out of enterprise,” Phil McDaniel, CEO of St. Augustine Distillery and Chair of the DISCUS Craft Advisory Council, stated within the assertion.
Late Thursday, HHS Chief of Employees Brian Harrison launched an announcement that the charges could be forgiven.
“Small companies who stepped as much as combat COVID-19 needs to be applauded by their authorities, not taxed for doing so. I’m happy to announce we have now directed FDA to stop enforcement of those arbitrary, shock person charges. Joyful New 12 months, distilleries, and cheers to you for serving to maintain us protected!” HHS tweeted.
