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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