Under the now-voided rule, distilleries would have been forced to shut down production of hand sanitizer and pay a government fee.
The U.S. Department of Health and Human Services (HHS) is overriding the Food and Drug Administration (FDA), which made a surprise announcement Tuesday that any distillery that switched to producing hand sanitizer this year during the pandemic will owe thousands of dollars in fees and could be charged twice if they do not cease production immediately. HHS Chief of Staff Brian Harrison announced Thursday: “Small businesses who stepped up to fight COVID-19 should be applauded by their government, not taxed for doing so. 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!” The early and uncertain days of the pandemic created a high demand for hand sanitizer. Many craft-brewing distilleries, which found their regular operations at a standstill due to COVID shutdowns, pivoted to making sanitizer to stay financially afloat and help with the sudden shortage. More than 800 distilleries shifted from spirits to sanitizer, offering it for sale and even donating it to their communities.
