In the early days of the coronavirus pandemic, the country turned to traditional alcohol distillers to quickly produce and distribute hand sanitizer, as companies that were already producing it couldn’t keep up with the demand.
This past week, those distillers learned about a surprise bill they would have to pay, courtesy of the federal government.
“At issue is a provision of the CARES Act that reformed regulation of non-prescription drugs. Under the revised law, distilleries that produced sanitizer have been classified as ‘over-the-counter drug monograph facilities.’ The CARES Act also enacted user fees on these facilities to fund the FDA’s regulatory activities. For small distillers, that means ending the year with a surprise bill for $14,060,” the outlet noted.
“Even if you created only a few gallons or donated all of it, you’re on the hook for $14,000,” said Aaron Bergh, the owner of Calwise Spirits in Paso Robles, California.
“No good deed goes unpunished.”
Thankfully, according to the Department of Health and Human Services, the fees will be waived, with HHS Chief of Staff Brian Harrison announcing Thursday the good deeds would not, in fact, be punished.
“I’m pleased to announce we have directed FDA to cease enforcement of these arbitrary, surprise user fees. Happy New Year, distilleries, and cheers to you for helping keep us safe!” (2/2)
— HHS Office of Public Affairs (@SpoxHHS) December 31, 2020