Firms from India and other nations supplying food to the US may soon
find it costlier to do businesses with the US proposing a new rule that
requires them to address vulnerable processes in operations to prevent
facilities from being target of "intentional adulteration".
Initial estimates suggest that companies, both domestic and overseas,
might have to spend nearly $500 million in ten years to comply to the
proposed rule requirements.
The proposed new norms by food regulator FDA comes in the backdrop of
constant fears of intentional harm to US health system and consumers via
its food supply chain.
Facilities would have to identify and implement strategies to address
these vulnerabilities, establish monitoring procedures and corrective
actions, verify that the system is working and maintain certain records,
among others.
However, these rules are not intended to apply to farms and food for animals as of now.
The proposed rule, under the FDA Food Safety Modernisation Act, would
require domestic and overseas suppliers to have a written food defence
plan that addresses any potential vulnerabilities in a food operation.
"Acts of intentional adulteration may take several forms, including
those where the intention is to cause large-scale public health harm;
acts of disgruntled employees, consumers, or competitors; and
economically motivated adulteration," the FDA (Food and Drug
Administration) said.
With some exceptions, this proposed rule would apply to both domestic
and foreign facilities that manufacture, process, pack, or hold food and
are required to register as a food facility.
"The proposed rule is aimed at preventing intentional adulteration from
acts intended to cause massive public health harm, including acts of
terrorism... The cost of the proposed rule to both domestic and foreign
firms, annualised over 10 years at a 7 per cent discount rate, is
between $260 million and $470 million", the FDA added.
Justifying the additional burden, the American regulator said that the
expected benefit of preventing a catastrophic terrorist attack on the US
food supply is about $130 billion. ”...means that the benefits of this
rule outweigh the costs to Americans if the rule has a 1 in 730 or
better annual chance of preventing such an attack", it said.
In addition to the rule on intentional adulteration, the FDA has already
proposed preventive controls for human food and separately for animal
food; standards for produce safety.
The FDA has also proposed two rules related to imports: the Foreign
Supplier Verification Programme for importers as well as a programme for
the accreditation of third-party auditors to conduct food safety audits
of foreign facilities and the foods for humans and animals they
produce.
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