THE UNINTENDED CONSEQUENCES OF THE BIOTERRORISM ACT: FOREIGN MANUFACTURER PRICING
A special report by RIGGLE & CRAVEN
The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the “Bioterrorism Act”) was intended to protest the
While, on first glance, this would appear to have no impact on pricing, it actually has a significant impact as it greatly limits, if not eliminates, the secondary, or grey market channel of distribution. Consider the following hypothetical:
Factual Situation Prior to Implementation of Bioterrorism Act
Manufacturer X is located in Country A. It primarily sells its product in the
Within the Home Market of Country A, the price of food is kept low by various government programs and the market. Distributor P purchases large quantities of product from manufacturer X and resells this product both in the Home Market as a distributor and also to importer M. Importer M, in turn, resells this product in the
Under the Bioterrorism Act, Distributor P and importer M will no longer be able to ship to
How Can RIGGLE & CRAVEN Help?
Even at this late date, it is still possible to comply with the Bioterrorism Act and its rather draconian provisions. RIGGLE & CRAVEN, through its related entity RC Food Agents, Inc., can quickly register your entity with the FDA and help to educate your sources and your customers as to the requirements of the Act. Even if YOU are registered, your business is imperiled if your foreign processors are not also registered.
The law firm of RIGGLE & CRAVEN is providing this as part of a commitment to advise of recent developments which are of importance to the international trade community. Permission to reproduce, photocopy, reprint or excerpt this advertising material is granted provided the source is attributed to RIGGLE & CRAVEN. The information provided is in summary form and we urge readers to confirm any conclusions reached before taking action based on it.