White House’s OMB Intervenes to Weaken FDA’s Proposed Regulation of E-Cigs

On April 24, 2014, the U.S. Food and Drug Administration’s (FDA) issued a proposed regulation which would subject the currently unregulated e-cigarette industry to FDA regulation under the authority of the Federal Food, Drug and Cosmetic Act (FD&C Act). The proposed rule put e-cigarettes with a list of products FDA “deemed” tobacco products, and as such, subject to the FD&C Act. OMB intervened to weaken FDA’s original proposal.


If the proposed rule became final – e-cigarettes (and the other products “deemed” tobacco products) would have been subject to:

(1) Enforcement action against products determined to be adulterated and misbranded;
(2) required submission of ingredient listing and reporting of harmful and potentially harmful constituents (HPHCs) for all tobacco products;
(3) required registration and product listing for all tobacco products;
(4) prohibition against use of modified risk descriptors (e.g., “light,” “low,” and “mild” descriptors) and claims unless FDA issues an order permitting their use;
(5) prohibition on the distribution of free samples; 
(6) premarket review requirements;
(7) Requirement for a minimum age of purchase; (what this will do to online sales was yet to be determined)
(8) health warnings for product packages and advertisements; and
(9) prohibition of vending machine sales, unless the vending machine is located in a facility where the retailer ensures that individuals under 18 years of age are prohibited from entering at any time.

After analyzing the proposed rule and its potential economic effects, the White House’s Office of Management and […]

Do You Want to be a “Trusted Trader”? C-TPAT is No Longer Enough

U.S. Customs and Border Protection (CBP) recently published the long awaited Federal Register Notice, dated June 16, 2014, discussing the “Announcement of Trusted Trader Program Test.” This new “Trusted Trader” program is big news for U.S. and non-resident Canadian importers, and if implemented will combine the Customs-Trade Partnership Against Terrorism (CTPAT) and Importer Self Assessment (ISA) programs, making ISA extinct.  CBP is currently recruiting test companies that have to be willing to go through an 18 month program test.
What is the Trusted Trader Program?

  • CBP will unify CTPAT and ISA programs into a new “Trusted Trader” program.  Companies will still have the option to apply for CTPAT and opt out of the Trusted Trader Program, but, the ISA program will be replaced by the Trusted Trader program.  CBP aims to align the Trusted Trade program with Authorized Economic Operator (AEO) programs, which focus on a combined trade and security compliance model.
  • CBP is collaborating with the U.S. Consumer Product Safety Commission (CPSC) and the U.S. Food and Drug Administration (FDA), to develop the new “Trusted Trader” program aims to “streamline the process through which importers can establish to CBP that they strive to secure their supply chains and strengthen their internal controls for compliance with the existing laws and regulations administered or enforced by CBP.” The 3 government agencies will collaborate, share information, streamline the application and validation process; and increase the efficiencies in the existing trade programs.
  • CBP plans to utilize the Centers of Excellence and Expertise […]

FDA Issues Final Compliance Policy Guide for Food Facility Registration

 

The U.S. Food and Drug Administration (FDA) has issued the “Compliance Policy Guide Sec. 100.250 Food Facility Registration – Human and Animal Food” (the CPG).  The CPG provides guidance for FDA staff pertaining to the enforcement of the food facility registration provisions of section 415 of the Federal Food, Drug, and Cosmetic Act (FD&C Act), which were amended by the FDA Food Safety Modernization Act (FSMA).  Under these provisions, any food facilities which manufacture, process, pack or hold food for human or animal consumption in the United States must be registered with the FDA.  Additionally, each registered facility is required to biennially renew their registrations with the FDA.  The CPG further describes the FDA’s authority to suspend a food facility’s registration.

In April 2013, the FDA published a draft of the CPG and of the two comments received, no significant changes were recommended to the draft CPG.  Therefore, no substantive changes were made from the draft to the final version of the CPG.

Please note that this CPG replaces the previously issued “Compliance Policy Guide Sec. 110.300 Registration of Food Facilities Under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002.”

If you wish to obtain additional information on which food facilities must be registered with the FDA, or if you would like assistance in registering your food facility, please feel free to call me at (305) 260-1053, or email me at JDiaz@bplegal.com.

By |2022-07-07T10:18:37-04:00June 2, 2014|FDA Issues, Food, FSMA|1 Comment

Freight Forwarder Pays $125,000 Mitigated Penalty – Avoid This & Learn 11 Steps to Exporting

Aramex Emirates, LLC, located in Dubai, United Arab Emirates (U.A.E.), agreed to pay a $125,000 civil penalty to the U.S. Department of Commerce’s (DOC) Bureau of Industry and Security (BIS) for the unlicensed export and reexport to Syria, via the U.A.E., of network devices and software without the required BIS licenses. The Under Secretary of Commerce Eric L. Hirschhorn commented:
Today’s settlement shows the importance of compliance with U.S. law by foreign freight forwarders handling items subject to U.S. export controls.

CBP Updates Trade Community on GSP Expiration

For those of you that relied on the Generalized System of Preferences (GSP) and are now subject to duties, CBP sent a notice today that directly impacts you.

A previous post discussed the expiration of GSP and need for congressional action to renew it. GSP expired July 31, 2013. Importers were advised to continue to use the Special Program Indicator (SPI) “A” when importing into the U.S., which would signify a valid claim for GSP but to pay duty subsequent to that date, so that in the event of a retroactive renewal, CBP could process refunds automatically.

Unfortunately, the picture above is still correct – the trade community is in limbo – will we get our duties refunded if we are entitled to GSP?  The answer… Yes, Maybe, No.  Not comforting or reassuring.

Today, CBP advised the trade community that:

.. neither requests to extend liquidation under 19 CFR 159.12, nor protest under 19 CFR Part 174, should be used to stop the liquidation of claim potential subject to GSP in anticipation that GSP will be renewed. Assuming that the goods were properly classified and appraised, they should be liquidated as scheduled. CBP does not have the legal authority to further extend liquidation pending possible renewal of GSP.

If GSP were to be renewed, the legislation would specify an effective date of for the date of renewal. The renewal date, if GSP is reauthorized, might or might allow for retroactive claims. On previous occasions when GSP was renewed retroactively, the legislation […]

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