U.S. Distilleries Making Pandemic Hand Sanitizer Get Fee Relief

  • Food and Drug Administration levied fees of up to $14,000
  • Health and Human Services voided the fees after a legal review
A worker fills a bottle with hand sanitizer solution made from distilled alcohol byproducts at a distillery in Seattle in March 2020.Photographer: Chona Kasinger/Bloomberg
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U.S. distilleries and other businesses that began making hand sanitizer as the coronavirus pandemic gripped the country have gotten a reprieve from thousands of dollars in user fees normally imposed on companies that produce medical products.

The craft beverage industry, primarily made up of small businesses, got unwelcome news in the Federal Register this week, after the U.S. Food and Drug Administration indicated that it planned to charge fees of as much as $14,000 to companies that made hand sanitizer. The product normally is considered an over-the-counter drug, and regulated by the FDA.