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Food And Animal Feed Export Certification User Fee

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+$ 3,536,000 (Mandatory User Fee)

Why is this initiative necessary?

In FY 2007, FDA estimates that the agency will issue 37,000 food and animal feed export certificates. FDA currently funds this activity through discretionary appropriations.

The Administration is proposing legislation authorizing FDA to collect user fees for issuing food and animal feed export certificates within 20 days of the receipt of a request. Under this proposal, these activities will be reclassified as mandatory user fees in FY 2007. Imposing a fee would generate an estimated $3,536,000 in revenue, an amount sufficient to cover the cost of issuing certificates. Private sector exporters would bear the cost of the program, but would reap its benefits through the agency's enhanced ability to facilitate exports of their products.

**Reclassification of Resources from Discretionary Budget Authority to Mandatory User Fees - Food and Animal Feed Export Certification User Fees**
Description	FY 2005	FY 2006	FY 2007 Discretionary	FY 2007 Mandatory User Fee
	Est.	Est.	$	$
CFSAN			-906,000	+906,000
CVM			-63,000	+63,000
Field			-2,567,000	+2,567,000
Total	0	0	-3,536,000	+3,536,000

How does this initiative support Executive Branch public health priorities?

Section 801 (e)(4)(B) of the Federal Food, Drug, and Cosmetic Act (the Act) authorizes FDA to collect user fees for export certificates for human drugs, animal drugs, and devices. However, this section does not extend to collecting user fees for export certificates for foods and animal feed. FDA expends significant resources annually to issue these certificates, and the agency needs to focus its resources on activities that are central to its public health mission.

What activities will these funds support?

The agency's ability to issue certificates in a timely fashion depends on FDA securing the resources necessary to offset the costs associated with issuing export certificates for foods and feeds. Thus, for FY 2007, the FDA proposes $3,536,000 in mandatory user fees to support FDA activities associated with facilitating international trade.

What results will FDA achieve?

The user fee proposal would allow FDA to issue an estimated 37,000 food and animal feed export certificates in FY 2007. In its Affirmative Agenda for International Activities report, FDA's Center for Food Safety and Applied Nutrition stated its intent to try to find effective and resource-efficient approaches to issuing export certificates for foods.

The purpose of this proposal is to cover the agency's resources needed to issue food and feed export certificates benefiting U.S. food and feed manufacturers and exporters.