82_FR_41201 82 FR 41035 - Food Safety Modernization Act Third-Party Certification Program User Fee Rate for Fiscal Year 2018

82 FR 41035 - Food Safety Modernization Act Third-Party Certification Program User Fee Rate for Fiscal Year 2018

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration

Federal Register Volume 82, Issue 166 (August 29, 2017)

Page Range41035-41038
FR Document2017-18222

The Food and Drug Administration (FDA) is announcing the fiscal year (FY) 2018 annual fee rate for recognized accreditation bodies and accredited certification bodies, and the fee rate for accreditation bodies applying to be recognized in the third-party certification program that is authorized by the Federal Food, Drug, and Cosmetic Act (the FD&C Act), as amended by the FDA Food Safety Modernization Act (FSMA).

Federal Register, Volume 82 Issue 166 (Tuesday, August 29, 2017)
[Federal Register Volume 82, Number 166 (Tuesday, August 29, 2017)]
[Notices]
[Pages 41035-41038]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18222]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2016-N-4119]


Food Safety Modernization Act Third-Party Certification Program 
User Fee Rate for Fiscal Year 2018

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Food and Drug Administration (FDA) is announcing the 
fiscal year (FY) 2018 annual fee rate for recognized accreditation 
bodies and accredited certification bodies, and the fee rate for 
accreditation bodies applying to be recognized in the third-party 
certification program that is authorized by the Federal Food, Drug, and 
Cosmetic Act (the FD&C Act), as amended by the FDA Food Safety 
Modernization Act (FSMA).

FOR FURTHER INFORMATION CONTACT: Donald Prater, Office of Foods and 
Veterinary Medicine, Food and Drug Administration, 10903 New Hampshire 
Ave., Bldg. 1, Rm. 3234, Silver Spring, MD 20993, 301-348-3007.

DATES: This fee is effective October 1, 2017.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 307 of FSMA, Accreditation of Third-Party Auditors, amended 
the FD&C Act to create a new provision, section 808, under the same 
name. Section 808 of the FD&C Act (21 U.S.C. 384d) directs FDA to 
establish a program for accreditation of third-party certification 
bodies \1\ conducting food safety audits and issuing food and facility 
certifications to eligible foreign entities (including registered 
foreign food facilities) that meet our applicable requirements. Under 
this provision, we established a system for FDA to recognize 
accreditation bodies to accredit certification bodies, except for 
limited circumstances in which we may directly accredit certification 
bodies to participate in the third-party certification program.
---------------------------------------------------------------------------

    \1\ For the reasons explained in the third-party certification 
final rule (80 FR 74570 at 74578-74579, November 27, 2015), and for 
consistency with the implementing regulations for the third-party 
certification program in 21 CFR parts 1, 11, and 16, this notice 
uses the term ``third-party certification body'' rather than the 
term ``third-party auditor'' used in section 808(a)(3) of the FD&C 
Act.
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    Section 808(c)(8) of the FD&C Act directs FDA to establish a 
reimbursement (user fee) program by which we assess fees and require 
reimbursement for the work FDA performs to establish and administer the 
third-party certification program under section 808 of the FD&C Act. 
The user fee program for the third-party certification program was 
established by a final rule entitled ``Amendments to Accreditation of 
Third-Party Certification Bodies to Conduct Food Safety Audits and To 
Issue Certifications to Provide for the User Fee Program'' (81 FR 
90186, December 14, 2016).
    The FSMA FY 2018 third-party certification program user fee rate 
announced in this notice is effective on October 1, 2017, and will 
remain in effect through September 30, 2018.

II. Estimating the Average Cost of a Supported Direct FDA Work Hour for 
FY 2018

    In each year, the costs of salary (or personnel compensation) and 
benefits for FDA employees account for between 50 and 60 percent of the 
funds available to, and used by, FDA. Almost all of the remaining funds 
(operating funds) available to FDA are used to support FDA employees 
for paying rent, travel, utility, information technology, and other 
operating costs.

A. Estimating the Full Cost per Direct Work Hour in FY 2018

    Full-time Equivalent (FTE) reflects the total number of regular 
straight-time hours--not including overtime or holiday hours--worked by 
employees,

[[Page 41036]]

divided by the number of compensable hours applicable to each fiscal 
year. Annual leave, sick leave, compensatory time off, and other 
approved leave categories are considered ``hours worked'' for purposes 
of defining FTE employment.
    In general, the starting point for estimating the full cost per 
direct work hour is to estimate the cost of an FTE or paid staff year. 
Calculating an Agency-wide total cost per FTE requires three primary 
cost elements: Payroll, non-payroll, and rent.
    We have used an average of past year cost elements to predict the 
FY 2018 cost. The FY 2018 FDA-wide average cost for payroll (salaries 
and benefits) is $154,638; non-payroll--including equipment, supplies, 
IT, general and administrative overhead--is $89,224; and rent, 
including cost allocation analysis and adjustments for other rent and 
rent-related costs, is $23,922 per paid staff year, excluding travel 
costs.
    Summing the average cost of an FTE for payroll, non-payroll, and 
rent, brings the FY 2018 average fully supported cost to $267,783 per 
FTE, excluding travel costs. FDA will use this base unit fee in 
determining the hourly fee rate for third party certification user fees 
for FY 2018 prior to including travel costs as applicable for the 
activity.
    To calculate an hourly rate, FDA must divide the FY 2018 average 
fully supported cost of $267,783 per FTE by the average number of 
supported direct FDA work hours in FY 2016--the last FY for which data 
are available. See table 1.

Table 1--Supported Direct FDA Work Hours in a Paid Staff Year in FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Number of Hours in a Paid Staff Year...................      2,080
Less:
    10 paid holidays.........................................        -80
    20 days of annual leave..................................       -160
    10 days of sick leave....................................        -80
    12.5 days of training....................................       -100
    26.5 days of general administration......................       -184
    26.5 days of travel......................................       -212
    2 hours of meetings per week.............................       -104
                                                              ----------
        Net Supported Direct FDA Work Hours Available for         =1,160
         Assignments.........................................
------------------------------------------------------------------------

    Dividing the average fully supported FTE cost in FY 2018 ($267,783) 
by the total number of supported direct work hours available for 
assignment in FY 2016 (1,160) results in an average fully supported 
cost of $231 (rounded to the nearest dollar), excluding travel costs, 
per supported direct work hour in FY 2018.

B. Adjusting FY 2016 Travel Costs for Inflation To Estimate FY 2018 
Travel Costs

    To adjust the hourly rate for FY 2018, FDA must estimate the cost 
of inflation in each year for FY 2017 and FY 2018. FDA uses the method 
prescribed for estimating inflationary costs under the Prescription 
Drug User Fee Act (PDUFA) provisions of the FD&C Act (section 736(c)(1) 
(21 U.S.C. 379h(c)(1)), the statutory method for inflation adjustment 
in the FD&C Act that FDA has used consistently. FDA previously 
determined the FY 2017 inflation rate to be 1.5468 percent; this rate 
was published in the FY2017 PDUFA user fee rates notice in the Federal 
Register. Utilizing the method set forth in section 736(c)(1) of the 
FD&C Act, FDA has calculated an inflation rate of 1.5468 percent for FY 
2017 and 1.6868 percent for FY 2018 and FDA intends to use this 
inflation rate to make inflation adjustments for FY 2018 for several of 
its user fee programs; the derivation of this rate will be published in 
the Federal Register in the FY 2018 notice for the PDUFA user fee 
rates. The compounded inflation rate for FYs 2017 and 2018, therefore, 
is 1.032597 (or 3.2597 percent) (1 plus 1.5468 percent times 1 plus 
1.6868 percent).
    The average fully supported cost per supported direct FDA work 
hour, excluding travel costs, of $231 already takes into account 
inflation as the calculation above is based on FY 2018 predicted costs. 
FDA will use this base unit fee in determining the hourly fee rate for 
third-party certification program fees for FY 2018 prior to including 
travel costs as applicable for the activity. For the purpose of 
estimating the fee, we are using the travel cost rate for foreign 
travel because we anticipate that the vast majority of onsite 
assessments made by FDA under this program will require foreign travel. 
In FY 2016, the Office of Regulatory Affairs spent a total of 
$2,166,592 on 344.31 foreign inspection trips related to FDA's Center 
for Food Safety and Applied Nutrition and Center for Veterinary 
Medicine field activities programs, which averaged a total of $6,293 
per foreign inspection trip. These trips averaged 3 weeks (or 120 paid 
hours) per trip. Dividing $6,293 per trip by 120 hours per trip results 
in a total and an additional cost of $52 (rounded to the nearest 
dollar) per paid hour spent for foreign inspection travel costs in FY 
2016. To adjust $52 for inflationary increases in FY 2017 and FY 2018, 
FDA must multiply it by the same inflation factor mentioned previously 
in this document (1.032597 or 3.2597 percent), which results in an 
estimated cost of $54 (rounded to the nearest dollar) per paid hour in 
addition to $231 for a total of $285 per paid hour ($231 plus $54) for 
each direct hour of work requiring foreign inspection travel. FDA will 
use these rates in charging fees in FY 2018 when travel is required for 
the third-party certification program.

                 Table 2--FSMA Fee Schedule for FY 2018
------------------------------------------------------------------------
                                                           Fee rates for
                      Fee category                            FY 2018
------------------------------------------------------------------------
Hourly rate without travel..............................            $231
Hourly rate if travel is required.......................             285
------------------------------------------------------------------------

III. Fees for Accreditation Bodies and Certification Bodies in the 
Third-Party Certification Program Under Section 808(c)(8) of the FD&C 
Act

    The third-party certification program assesses application fees and 
annual fees. In FY18, the only fees that will be collected by FDA under 
section 808(c)(8) of the FD&C Act are the initial application fee for 
accreditation bodies seeking recognition, the annual fee for recognized 
accreditation bodies, and the annual fee for certification bodies 
accredited by a recognized accreditation body. Table 3 provides an 
overview of the fees for FY 2018.

Table 3--FSMA Third-Party Certification Program User Fee Schedule for FY
                                  2018
------------------------------------------------------------------------
                                                           Fee rates for
                      Fee category                            FY 2018
------------------------------------------------------------------------
Initial Application Fee for Accreditation Body Seeking           $37,935
 Recognition............................................
Annual Fee for Recognized Accreditation Body............           1,752
Annual Fee for Accredited Certification Body............           2,190
------------------------------------------------------------------------

A. Application Fee for Accreditation Bodies Applying for Recognition in 
the Third-Party Certification Program Under Section 808(c)(8) of the 
FD&C Act

    Section 1.705(a)(1) (21 CFR 1.705(a)(1)) establishes an application 
fee for accreditation bodies applying for initial recognition that 
represents the estimated average cost of the work FDA performs in 
reviewing and evaluating initial applications for recognition of 
accreditation bodies.
    The fee is based on the fully supported FTE hourly rates and 
estimates of the number of hours it

[[Page 41037]]

would take FDA to perform relevant activities. These estimates 
represent FDA's current thinking, and as the program evolves, FDA will 
reconsider the estimated hours. We estimate that it would take, on 
average, 60 person-hours to review an accreditation body's submitted 
application, 48 person-hours for an onsite performance evaluation of 
the applicant (including travel and other steps necessary for a fully 
supported FTE to complete an onsite assessment), and 45 person-hours to 
prepare a written report documenting the onsite assessment.
    FDA employees are likely to review applications and prepare reports 
from their worksites, so we use the fully supported FTE hourly rate 
excluding travel, $231/hour, to calculate the portion of the user fee 
attributable to those activities: $231/hour x (60 hours + 45 hours) = 
$24,255. FDA employees will likely travel to foreign countries for the 
onsite performance evaluations because most accreditation bodies are 
located in foreign countries. For this portion of the fee we use the 
fully supported FTE hourly rate for work requiring travel, $285/hour, 
to calculate the portion of the user fee attributable to those 
activities: $285/hour x 48 hours (i.e., 2 fully supported FTEs x (2 
travel days + 1 day onsite)) = $13,680. The estimated average cost of 
the work FDA performs in total for reviewing an initial application for 
recognition for an accreditation body based on these figures would be 
$24,255 + $13,680 = $37,935. Therefore the application fee for 
accreditation bodies applying for recognition in FY 2018 will be 
$37,935.

B. Annual Fee for Accreditation Bodies Participating in the Third-Party 
Certification Program Under Section 808(c)(8) of the FD&C Act

    To calculate the annual fee for each recognized accreditation body, 
FDA takes the estimated average cost of work FDA performs to monitor 
performance of a single recognized accreditation body and annualizes 
that over the average term of recognition. At this time we assume an 
average term of recognition of 5 years. We also assume that FDA will 
monitor 10 percent of recognized accreditation bodies onsite. As the 
program proceeds, we will adjust the term of recognition as 
appropriate. We estimate that for one performance evaluation of a 
recognized accreditation body, it would take, on average (taking into 
account that not all recognized accreditation bodies would be monitored 
onsite), 24 hours for FDA to conduct records review, 8 hours to prepare 
a report detailing the records review and onsite performance 
evaluation, and 4.8 hours of onsite performance evaluation (i.e., 10 
percent x 2 fully supported FTEs x (2 travel days + 2 day onsite)). 
Using the fully supported FTE hourly rates in table 2, the estimated 
average cost of the work FDA performs to monitor performance of a 
single recognized accreditation body would be $7,392 ($231/hour x (24 
hours + 8 hours)) plus $1,368 ($285/hour x 4.8 hours), which is $8,760. 
Annualizing this amount over 5 years would lead to an annual fee for 
recognized accreditation bodies of $1,752 for FY 2018.

C. Annual Fee for Certification Bodies Accredited by a Recognized 
Accreditation Body in the Third-Party Certification Program Under 
Section 808(c)(8) of the FD&C Act

    To calculate the annual fee for a certification body accredited by 
a recognized accreditation body, FDA takes the estimated average cost 
of work FDA performs to monitor performance of a single certification 
body accredited by a recognized accreditation body and annualizes that 
over the average term of accreditation. At this time we assume an 
average term of accreditation of 4 years. This fee is based on the 
fully supported FTE hourly rates and estimates of the number of hours 
it would take FDA to perform relevant activities. We estimate that FDA 
would conduct, on average, the same activities, for the same amount of 
time to monitor certification bodies accredited by a recognized 
accreditation body as we would to monitor an accreditation body 
recognized by FDA. Using the fully supported FTE hourly rates in table 
2, the estimated average cost of the work FDA performs to monitor 
performance of a single accredited certification body would be $7,392 
($231/hour x (24 hours + 8 hours)) plus $1,368 ($285/hour x 4.8 hours), 
which is $8,760. Annualizing this amount over 4 years would lead to an 
annual fee for accredited certification bodies of $2,190 for FY 2018.

IV. Estimated Fees for Accreditation Bodies and Certification Bodies in 
Other Fee Categories for FY 2018

    Section 1.705(a) also establishes application fees for recognized 
accreditation bodies submitting renewal applications, certification 
bodies applying for direct accreditation, and certification bodies 
applying for renewal of direct accreditation. Section 1.705(b) 
establishes annual fees for recognized accreditation bodies, 
certification bodies directly accredited by FDA, and certification 
bodies accredited by recognized accreditation bodies.
    Although we will not be collecting all of these other fees in FY 
2018, for transparency and planning purposes, we have provided an 
estimate of what these fees would be for FY 2018 based on the fully 
supported FTE hourly rates for FY 2018 and estimates of the number of 
hours it would take FDA to perform relevant activities as outlined in 
the Final Regulatory Impact Analysis for the Third-Party Certification 
Regulation. Table 4 provides an overview of the estimated fees for 
other fee categories.

  Table 4--Estimated Fee Rates for Other Fee Categories Under the FSMA
                    Third-Party Certification Program
------------------------------------------------------------------------
                                                           Estimated fee
                      Fee category                         rates for FY
                                                               2018
------------------------------------------------------------------------
Renewal application fee for recognized accreditation             $21,049
 body...................................................
Initial application fee for certification body seeking            37,935
 direct-accreditation from FDA..........................
Renewal application fee for directly-accredited                   28,755
 certification body.....................................
Annual fee for certification body directly-accredited by          21,072
 FDA....................................................
------------------------------------------------------------------------

V. How must the fee be paid?

    Accreditation bodies seeking initial recognition must submit the 
application fee with the application.
    For recognized accreditation bodies and accredited certification 
bodies, an invoice will be sent annually. Payment must be made within 
30 days of the invoice date. Detailed payment information will be 
included with the invoice when it is issued.

VI. What are the consequences of not paying this fee?

    The consequences of not paying these fees are outlined in Sec.  
1.725. If FDA does not receive an application fee with an application 
for recognition, the application will be considered incomplete and FDA 
will not review the application. If a recognized accreditation body 
fails to submit its annual user fee within 30 days of the due date, we 
will suspend its recognition. If the recognized accreditation body 
fails to submit its annual user fee within 90 days of the due date, we 
will revoke its recognition. If an accredited certification body fails 
to pay its annual fee within 30 days of the due date, we will suspend 
its accreditation. If the accredited certification body fails to pay 
its annual

[[Page 41038]]

fee within 90 days of the due date, we will withdraw its accreditation.

    Dated: August 23, 2017.
Anna K. Abram,
Deputy Commissioner for Policy, Planning, Legislation, and Analysis.
[FR Doc. 2017-18222 Filed 8-28-17; 8:45 am]
 BILLING CODE 4164-01-P



                                                                             Federal Register / Vol. 82, No. 166 / Tuesday, August 29, 2017 / Notices                                                      41035

                                                completed DFUF order) in your wire                      not to be used for questions related to               FD&C Act to create a new provision,
                                                transfer. Without the PIN, your payment                 other aspects of medical device user                  section 808, under the same name.
                                                may not be applied to your facility and                 fees.) Problems with the BER system                   Section 808 of the FD&C Act (21 U.S.C.
                                                your registration may be delayed.                       should be directed to https://                        384d) directs FDA to establish a
                                                   The originating financial institution                www.accessdata.fda.gov/scripts/email/                 program for accreditation of third-party
                                                may charge a wire transfer fee. If the                  cber/bldregcontact.cfm or call 240–402–               certification bodies 1 conducting food
                                                financial institution charges a wire                    8360.                                                 safety audits and issuing food and
                                                transfer fee it is required that you add                                                                      facility certifications to eligible foreign
                                                that amount to the payment to ensure                    D. Enter Your DFUF Order PIN and PCN
                                                                                                                                                              entities (including registered foreign
                                                that the invoice is paid in full. Use the                 After completing your annual or                     food facilities) that meet our applicable
                                                following account information when                      initial registration and device listing,              requirements. Under this provision, we
                                                sending a wire transfer: U.S. Dept. of                  you will be prompted to enter your                    established a system for FDA to
                                                Treasury, TREAS NYC, 33 Liberty St.,                    DFUF order PIN and PCN, when                          recognize accreditation bodies to
                                                New York, NY 10045, Acct. No.                           applicable. This process does not apply               accredit certification bodies, except for
                                                75060099, Routing No. 021030004,                        to establishments engaged only in the                 limited circumstances in which we may
                                                SWIFT: FRNYUS33, Beneficiary: FDA,                      manufacture, preparation, propagation,                directly accredit certification bodies to
                                                8455 Colesville Rd., 14th Floor, Silver                 compounding, or processing of licensed                participate in the third-party
                                                Spring, MD 20993–0002. If needed,                       biologic devices. CBER will send                      certification program.
                                                FDA’s tax identification number is 53–                  invoices for payment of the                              Section 808(c)(8) of the FD&C Act
                                                0196965.                                                establishment registration fee to such                directs FDA to establish a
                                                C. Complete the Information Online To                   establishments.                                       reimbursement (user fee) program by
                                                Update Your Establishment’s Annual                        Dated: August 24, 2017.                             which we assess fees and require
                                                Registration for FY 2018, or To Register                Anna K. Abram,                                        reimbursement for the work FDA
                                                a New Establishment for FY 2018                         Deputy Commissioner for Policy, Planning,             performs to establish and administer the
                                                                                                        Legislation, and Analysis.                            third-party certification program under
                                                   Go to the Center for Devices and                                                                           section 808 of the FD&C Act. The user
                                                Radiological Health’s Web site at                       [FR Doc. 2017–18378 Filed 8–28–17; 8:45 am]
                                                                                                                                                              fee program for the third-party
                                                https://www.fda.gov/MedicalDevices/                     BILLING CODE 4164–01–P
                                                                                                                                                              certification program was established by
                                                DeviceRegulationandGuidance/Howto
                                                                                                                                                              a final rule entitled ‘‘Amendments to
                                                MarketYourDevice/Registrationand
                                                                                                        DEPARTMENT OF HEALTH AND                              Accreditation of Third-Party
                                                Listing/default.htm and click the
                                                                                                        HUMAN SERVICES                                        Certification Bodies to Conduct Food
                                                ‘‘Access Electronic Registration’’ link on
                                                                                                                                                              Safety Audits and To Issue
                                                the left side of the page. This opens up
                                                                                                        Food and Drug Administration                          Certifications to Provide for the User
                                                a new page with important information
                                                                                                                                                              Fee Program’’ (81 FR 90186, December
                                                about the FDA Unified Registration and                  [Docket No. FDA–2016–N–4119]
                                                                                                                                                              14, 2016).
                                                Listing System (FURLS). After reading
                                                                                                        Food Safety Modernization Act Third-                     The FSMA FY 2018 third-party
                                                this information, click on the ‘‘Access
                                                                                                        Party Certification Program User Fee                  certification program user fee rate
                                                Electronic Registration’’ link in the
                                                                                                        Rate for Fiscal Year 2018                             announced in this notice is effective on
                                                middle of the page. This link takes you
                                                                                                                                                              October 1, 2017, and will remain in
                                                to an FDA Industry Systems page with
                                                                                                        AGENCY:    Food and Drug Administration,              effect through September 30, 2018.
                                                tutorials that demonstrate how to create
                                                                                                        HHS.
                                                a new FURLS user account if your                                                                              II. Estimating the Average Cost of a
                                                establishment did not create an account                 ACTION:   Notice.                                     Supported Direct FDA Work Hour for
                                                in FY 2017. Manufacturers of licensed                   SUMMARY: The Food and Drug                            FY 2018
                                                biologics should register in the BER                    Administration (FDA) is announcing the                  In each year, the costs of salary (or
                                                system at https://www.fda.gov/Biologics                 fiscal year (FY) 2018 annual fee rate for             personnel compensation) and benefits
                                                BloodVaccines/GuidanceCompliance                        recognized accreditation bodies and                   for FDA employees account for between
                                                RegulatoryInformation/Establishment                     accredited certification bodies, and the              50 and 60 percent of the funds available
                                                Registration/BloodEstablishment                         fee rate for accreditation bodies                     to, and used by, FDA. Almost all of the
                                                Registration/default.htm.                               applying to be recognized in the third-
                                                   Enter your existing account ID and                                                                         remaining funds (operating funds)
                                                                                                        party certification program that is                   available to FDA are used to support
                                                password to log into FURLS. From the
                                                                                                        authorized by the Federal Food, Drug,                 FDA employees for paying rent, travel,
                                                FURLS/FDA Industry Systems menu,
                                                                                                        and Cosmetic Act (the FD&C Act), as                   utility, information technology, and
                                                click on the Device Registration and
                                                                                                        amended by the FDA Food Safety                        other operating costs.
                                                Listing Module (DRLM) of FURLS
                                                                                                        Modernization Act (FSMA).
                                                button. New establishments will need to                                                                       A. Estimating the Full Cost per Direct
                                                register and existing establishments will               FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                              Work Hour in FY 2018
                                                update their annual registration using                  Donald Prater, Office of Foods and
                                                                                                        Veterinary Medicine, Food and Drug                      Full-time Equivalent (FTE) reflects the
                                                choices on the DRLM menu. When you                                                                            total number of regular straight-time
                                                choose to register or update your annual                Administration, 10903 New Hampshire
                                                                                                        Ave., Bldg. 1, Rm. 3234, Silver Spring,               hours—not including overtime or
                                                registration, the system will prompt you                                                                      holiday hours—worked by employees,
                                                through the entry of information about                  MD 20993, 301–348–3007.
sradovich on DSK3GMQ082PROD with NOTICES




                                                your establishment and your devices. If                 DATES: This fee is effective October 1,
                                                                                                                                                                1 For the reasons explained in the third-party
                                                you have any problems with this                         2017.                                                 certification final rule (80 FR 74570 at 74578–
                                                process, email: reglist@cdrh.fda.gov or                 SUPPLEMENTARY INFORMATION:                            74579, November 27, 2015), and for consistency
                                                call 301–796–7400 for assistance. (Note:                                                                      with the implementing regulations for the third-
                                                This email address and this telephone                   I. Background                                         party certification program in 21 CFR parts 1, 11,
                                                                                                                                                              and 16, this notice uses the term ‘‘third-party
                                                number are for assistance with                             Section 307 of FSMA, Accreditation                 certification body’’ rather than the term ‘‘third-party
                                                establishment registration only; they are               of Third-Party Auditors, amended the                  auditor’’ used in section 808(a)(3) of the FD&C Act.



                                           VerDate Sep<11>2014   18:45 Aug 28, 2017   Jkt 241001   PO 00000   Frm 00054   Fmt 4703   Sfmt 4703   E:\FR\FM\29AUN1.SGM   29AUN1


                                                41036                               Federal Register / Vol. 82, No. 166 / Tuesday, August 29, 2017 / Notices

                                                divided by the number of compensable                            per supported direct work hour in FY                  factor mentioned previously in this
                                                hours applicable to each fiscal year.                           2018.                                                 document (1.032597 or 3.2597 percent),
                                                Annual leave, sick leave, compensatory                                                                                which results in an estimated cost of
                                                                                                                B. Adjusting FY 2016 Travel Costs for
                                                time off, and other approved leave                                                                                    $54 (rounded to the nearest dollar) per
                                                                                                                Inflation To Estimate FY 2018 Travel
                                                categories are considered ‘‘hours                               Costs
                                                                                                                                                                      paid hour in addition to $231 for a total
                                                worked’’ for purposes of defining FTE                                                                                 of $285 per paid hour ($231 plus $54)
                                                employment.                                                        To adjust the hourly rate for FY 2018,             for each direct hour of work requiring
                                                   In general, the starting point for                           FDA must estimate the cost of inflation               foreign inspection travel. FDA will use
                                                estimating the full cost per direct work                        in each year for FY 2017 and FY 2018.                 these rates in charging fees in FY 2018
                                                hour is to estimate the cost of an FTE                          FDA uses the method prescribed for                    when travel is required for the third-
                                                or paid staff year. Calculating an                              estimating inflationary costs under the               party certification program.
                                                Agency-wide total cost per FTE requires                         Prescription Drug User Fee Act
                                                three primary cost elements: Payroll,                           (PDUFA) provisions of the FD&C Act                     TABLE 2—FSMA FEE SCHEDULE FOR
                                                non-payroll, and rent.                                          (section 736(c)(1) (21 U.S.C. 379h(c)(1)),                       FY 2018
                                                   We have used an average of past year                         the statutory method for inflation
                                                cost elements to predict the FY 2018                            adjustment in the FD&C Act that FDA                                                               Fee rates for
                                                                                                                has used consistently. FDA previously                            Fee category
                                                cost. The FY 2018 FDA-wide average                                                                                                                                  FY 2018
                                                cost for payroll (salaries and benefits) is                     determined the FY 2017 inflation rate to
                                                $154,638; non-payroll—including                                 be 1.5468 percent; this rate was                      Hourly rate without travel .....                     $231
                                                                                                                published in the FY2017 PDUFA user                    Hourly rate if travel is re-
                                                equipment, supplies, IT, general and
                                                                                                                fee rates notice in the Federal Register.               quired ................................             285
                                                administrative overhead—is $89,224;
                                                and rent, including cost allocation                             Utilizing the method set forth in section
                                                                                                                736(c)(1) of the FD&C Act, FDA has                    III. Fees for Accreditation Bodies and
                                                analysis and adjustments for other rent
                                                                                                                calculated an inflation rate of 1.5468                Certification Bodies in the Third-Party
                                                and rent-related costs, is $23,922 per
                                                                                                                percent for FY 2017 and 1.6868 percent                Certification Program Under Section
                                                paid staff year, excluding travel costs.
                                                   Summing the average cost of an FTE                           for FY 2018 and FDA intends to use this               808(c)(8) of the FD&C Act
                                                for payroll, non-payroll, and rent, brings                      inflation rate to make inflation                         The third-party certification program
                                                the FY 2018 average fully supported                             adjustments for FY 2018 for several of                assesses application fees and annual
                                                cost to $267,783 per FTE, excluding                             its user fee programs; the derivation of              fees. In FY18, the only fees that will be
                                                travel costs. FDA will use this base unit                       this rate will be published in the                    collected by FDA under section
                                                fee in determining the hourly fee rate for                      Federal Register in the FY 2018 notice                808(c)(8) of the FD&C Act are the initial
                                                third party certification user fees for FY                      for the PDUFA user fee rates. The                     application fee for accreditation bodies
                                                2018 prior to including travel costs as                         compounded inflation rate for FYs 2017                seeking recognition, the annual fee for
                                                applicable for the activity.                                    and 2018, therefore, is 1.032597 (or                  recognized accreditation bodies, and the
                                                   To calculate an hourly rate, FDA must                        3.2597 percent) (1 plus 1.5468 percent                annual fee for certification bodies
                                                divide the FY 2018 average fully                                times 1 plus 1.6868 percent).                         accredited by a recognized accreditation
                                                supported cost of $267,783 per FTE by                              The average fully supported cost per               body. Table 3 provides an overview of
                                                the average number of supported direct                          supported direct FDA work hour,                       the fees for FY 2018.
                                                FDA work hours in FY 2016—the last                              excluding travel costs, of $231 already
                                                FY for which data are available. See                            takes into account inflation as the                     TABLE 3—FSMA THIRD-PARTY CER-
                                                table 1.                                                        calculation above is based on FY 2018
                                                                                                                                                                         TIFICATION PROGRAM USER FEE
                                                                                                                predicted costs. FDA will use this base
                                                                                                                unit fee in determining the hourly fee                   SCHEDULE FOR FY 2018
                                                  TABLE 1—SUPPORTED DIRECT FDA
                                                  WORK HOURS IN A PAID STAFF                                    rate for third-party certification program
                                                                                                                                                                                                                  Fee rates for
                                                                                                                fees for FY 2018 prior to including                              Fee category
                                                  YEAR IN FY 2016                                                                                                                                                   FY 2018
                                                                                                                travel costs as applicable for the
                                                                                                                activity. For the purpose of estimating               Initial Application Fee for Ac-
                                                Total Number of Hours in a Paid
                                                                                                                the fee, we are using the travel cost rate               creditation Body Seeking
                                                  Staff Year ..................................        2,080
                                                                                                                for foreign travel because we anticipate                 Recognition .......................           $37,935
                                                Less:
                                                                                                                that the vast majority of onsite                      Annual Fee for Recognized
                                                    10 paid holidays ....................              ¥80
                                                                                                                assessments made by FDA under this                       Accreditation Body ............                  1,752
                                                    20 days of annual leave ........                  ¥160
                                                                                                                program will require foreign travel. In               Annual Fee for Accredited
                                                    10 days of sick leave ............                 ¥80
                                                                                                                                                                         Certification Body ..............                2,190
                                                    12.5 days of training ..............              ¥100      FY 2016, the Office of Regulatory Affairs
                                                    26.5 days of general adminis-                               spent a total of $2,166,592 on 344.31
                                                       tration .................................      ¥184      foreign inspection trips related to FDA’s             A. Application Fee for Accreditation
                                                    26.5 days of travel .................             ¥212      Center for Food Safety and Applied                    Bodies Applying for Recognition in the
                                                    2 hours of meetings per week                      ¥104      Nutrition and Center for Veterinary                   Third-Party Certification Program Under
                                                                                                                Medicine field activities programs,                   Section 808(c)(8) of the FD&C Act
                                                            Net Supported Direct
                                                              FDA     Work          Hours                       which averaged a total of $6,293 per                    Section 1.705(a)(1) (21 CFR
                                                              Available for Assign-                             foreign inspection trip. These trips                  1.705(a)(1)) establishes an application
                                                              ments ..........................       =1,160     averaged 3 weeks (or 120 paid hours)                  fee for accreditation bodies applying for
                                                                                                                per trip. Dividing $6,293 per trip by 120             initial recognition that represents the
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                                                  Dividing the average fully supported                          hours per trip results in a total and an              estimated average cost of the work FDA
                                                FTE cost in FY 2018 ($267,783) by the                           additional cost of $52 (rounded to the                performs in reviewing and evaluating
                                                total number of supported direct work                           nearest dollar) per paid hour spent for               initial applications for recognition of
                                                hours available for assignment in FY                            foreign inspection travel costs in FY                 accreditation bodies.
                                                2016 (1,160) results in an average fully                        2016. To adjust $52 for inflationary                    The fee is based on the fully
                                                supported cost of $231 (rounded to the                          increases in FY 2017 and FY 2018, FDA                 supported FTE hourly rates and
                                                nearest dollar), excluding travel costs,                        must multiply it by the same inflation                estimates of the number of hours it


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                                                                             Federal Register / Vol. 82, No. 166 / Tuesday, August 29, 2017 / Notices                                                           41037

                                                would take FDA to perform relevant                      evaluation, and 4.8 hours of onsite                      Although we will not be collecting all
                                                activities. These estimates represent                   performance evaluation (i.e., 10 percent              of these other fees in FY 2018, for
                                                FDA’s current thinking, and as the                      × 2 fully supported FTEs × (2 travel days             transparency and planning purposes, we
                                                program evolves, FDA will reconsider                    + 2 day onsite)). Using the fully                     have provided an estimate of what these
                                                the estimated hours. We estimate that it                supported FTE hourly rates in table 2,                fees would be for FY 2018 based on the
                                                would take, on average, 60 person-hours                 the estimated average cost of the work                fully supported FTE hourly rates for FY
                                                to review an accreditation body’s                       FDA performs to monitor performance                   2018 and estimates of the number of
                                                submitted application, 48 person-hours                  of a single recognized accreditation                  hours it would take FDA to perform
                                                for an onsite performance evaluation of                 body would be $7,392 ($231/hour × (24                 relevant activities as outlined in the
                                                the applicant (including travel and other               hours + 8 hours)) plus $1,368 ($285/                  Final Regulatory Impact Analysis for the
                                                steps necessary for a fully supported                   hour × 4.8 hours), which is $8,760.                   Third-Party Certification Regulation.
                                                FTE to complete an onsite assessment),                  Annualizing this amount over 5 years                  Table 4 provides an overview of the
                                                and 45 person-hours to prepare a                        would lead to an annual fee for                       estimated fees for other fee categories.
                                                written report documenting the onsite                   recognized accreditation bodies of
                                                assessment.                                             $1,752 for FY 2018.                                    TABLE 4—ESTIMATED FEE RATES FOR
                                                   FDA employees are likely to review                                                                           OTHER FEE CATEGORIES UNDER
                                                applications and prepare reports from                   C. Annual Fee for Certification Bodies
                                                                                                                                                                THE FSMA THIRD-PARTY CERTIFI-
                                                their worksites, so we use the fully                    Accredited by a Recognized
                                                                                                        Accreditation Body in the Third-Party                   CATION PROGRAM
                                                supported FTE hourly rate excluding
                                                travel, $231/hour, to calculate the                     Certification Program Under Section
                                                                                                                                                                                                           Estimated fee
                                                portion of the user fee attributable to                 808(c)(8) of the FD&C Act                                        Fee category                       rates for FY
                                                those activities: $231/hour × (60 hours                   To calculate the annual fee for a
                                                                                                                                                                                                                2018
                                                + 45 hours) = $24,255. FDA employees                    certification body accredited by a
                                                will likely travel to foreign countries for                                                                   Renewal application fee for
                                                                                                        recognized accreditation body, FDA                       recognized accreditation
                                                the onsite performance evaluations                      takes the estimated average cost of work                 body ..................................        $21,049
                                                because most accreditation bodies are                   FDA performs to monitor performance                   Initial application fee for cer-
                                                located in foreign countries. For this                  of a single certification body accredited                tification body seeking di-
                                                portion of the fee we use the fully                     by a recognized accreditation body and                   rect-accreditation from
                                                supported FTE hourly rate for work                      annualizes that over the average term of                 FDA ...................................          37,935
                                                requiring travel, $285/hour, to calculate                                                                     Renewal application fee for
                                                                                                        accreditation. At this time we assume an                 directly-accredited certifi-
                                                the portion of the user fee attributable
                                                                                                        average term of accreditation of 4 years.
                                                to those activities: $285/hour × 48 hours                                                                        cation body ........................             28,755
                                                                                                        This fee is based on the fully supported
                                                (i.e., 2 fully supported FTEs × (2 travel                                                                     Annual fee for certification
                                                                                                        FTE hourly rates and estimates of the                    body directly-accredited by
                                                days + 1 day onsite)) = $13,680. The
                                                                                                        number of hours it would take FDA to                     FDA ...................................          21,072
                                                estimated average cost of the work FDA
                                                                                                        perform relevant activities. We estimate
                                                performs in total for reviewing an initial
                                                                                                        that FDA would conduct, on average,                   V. How must the fee be paid?
                                                application for recognition for an
                                                                                                        the same activities, for the same amount                Accreditation bodies seeking initial
                                                accreditation body based on these
                                                                                                        of time to monitor certification bodies               recognition must submit the application
                                                figures would be $24,255 + $13,680 =
                                                $37,935. Therefore the application fee                  accredited by a recognized accreditation              fee with the application.
                                                for accreditation bodies applying for                   body as we would to monitor an                          For recognized accreditation bodies
                                                recognition in FY 2018 will be $37,935.                 accreditation body recognized by FDA.                 and accredited certification bodies, an
                                                                                                        Using the fully supported FTE hourly                  invoice will be sent annually. Payment
                                                B. Annual Fee for Accreditation Bodies                  rates in table 2, the estimated average               must be made within 30 days of the
                                                Participating in the Third-Party                        cost of the work FDA performs to                      invoice date. Detailed payment
                                                Certification Program Under Section                     monitor performance of a single                       information will be included with the
                                                808(c)(8) of the FD&C Act                               accredited certification body would be                invoice when it is issued.
                                                  To calculate the annual fee for each                  $7,392 ($231/hour × (24 hours + 8
                                                recognized accreditation body, FDA                      hours)) plus $1,368 ($285/hour × 4.8                  VI. What are the consequences of not
                                                takes the estimated average cost of work                hours), which is $8,760. Annualizing                  paying this fee?
                                                FDA performs to monitor performance                     this amount over 4 years would lead to                   The consequences of not paying these
                                                of a single recognized accreditation                    an annual fee for accredited certification            fees are outlined in § 1.725. If FDA does
                                                body and annualizes that over the                       bodies of $2,190 for FY 2018.                         not receive an application fee with an
                                                average term of recognition. At this time               IV. Estimated Fees for Accreditation                  application for recognition, the
                                                we assume an average term of                            Bodies and Certification Bodies in                    application will be considered
                                                recognition of 5 years. We also assume                  Other Fee Categories for FY 2018                      incomplete and FDA will not review the
                                                that FDA will monitor 10 percent of                                                                           application. If a recognized
                                                recognized accreditation bodies onsite.                   Section 1.705(a) also establishes                   accreditation body fails to submit its
                                                As the program proceeds, we will adjust                 application fees for recognized                       annual user fee within 30 days of the
                                                the term of recognition as appropriate.                 accreditation bodies submitting renewal               due date, we will suspend its
                                                We estimate that for one performance                    applications, certification bodies                    recognition. If the recognized
                                                evaluation of a recognized accreditation                applying for direct accreditation, and                accreditation body fails to submit its
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                                                body, it would take, on average (taking                 certification bodies applying for renewal             annual user fee within 90 days of the
                                                into account that not all recognized                    of direct accreditation. Section 1.705(b)             due date, we will revoke its recognition.
                                                accreditation bodies would be                           establishes annual fees for recognized                If an accredited certification body fails
                                                monitored onsite), 24 hours for FDA to                  accreditation bodies, certification bodies            to pay its annual fee within 30 days of
                                                conduct records review, 8 hours to                      directly accredited by FDA, and                       the due date, we will suspend its
                                                prepare a report detailing the records                  certification bodies accredited by                    accreditation. If the accredited
                                                review and onsite performance                           recognized accreditation bodies.                      certification body fails to pay its annual


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                                                41038                        Federal Register / Vol. 82, No. 166 / Tuesday, August 29, 2017 / Notices

                                                fee within 90 days of the due date, we                    Dated: August 24, 2017.                             Research; 93.394, Cancer Detection and
                                                will withdraw its accreditation.                        Anna Snouffer,                                        Diagnosis Research; 93.395, Cancer
                                                                                                        Deputy Director, Office of Federal Advisory           Treatment Research; 93.396, Cancer Biology
                                                  Dated: August 23, 2017.                                                                                     Research; 93.397, Cancer Centers Support;
                                                                                                        Committee Policy.
                                                Anna K. Abram,                                                                                                93.398, Cancer Research Manpower; 93.399,
                                                                                                        [FR Doc. 2017–18339 Filed 8–28–17; 8:45 am]           Cancer Control, National Institutes of Health,
                                                Deputy Commissioner for Policy, Planning,               BILLING CODE 4140–01–P                                HHS)
                                                Legislation, and Analysis.
                                                [FR Doc. 2017–18222 Filed 8–28–17; 8:45 am]                                                                     Dated: August 24, 2017.
                                                BILLING CODE 4164–01–P                                  DEPARTMENT OF HEALTH AND                              Melanie J. Pantoja,
                                                                                                        HUMAN SERVICES                                        Program Analyst, Office of Federal Advisory
                                                                                                                                                              Committee Policy.
                                                DEPARTMENT OF HEALTH AND                                National Institutes of Health                         [FR Doc. 2017–18343 Filed 8–28–17; 8:45 am]
                                                HUMAN SERVICES                                                                                                BILLING CODE 4140–01–P
                                                                                                        National Cancer Institute; Notice of
                                                National Institutes of Health                           Meeting
                                                                                                           Pursuant to section 10(d) of the                   DEPARTMENT OF HOMELAND
                                                Office of the Director, National                        Federal Advisory Committee Act, as                    SECURITY
                                                Institutes of Health: Notice of Closed                  amended, notice is hereby given of a
                                                Meeting                                                 meeting of the National Cancer Institute              Coast Guard
                                                                                                        Council of Research Advocates.                        [Docket No. USCG–2017–0690]
                                                  Pursuant to section 10(d) of the                         The meeting will be open to the
                                                Federal Advisory Committee Act, as                      public, with attendance limited to space              Cooperative Research and
                                                amended, notice is hereby given of a                    available. Individuals who plan to                    Development Agreement:
                                                meeting of the Advisory Committee to                    attend and need special assistance, such              Environmentally Friendly Buoy
                                                the Director, National Institutes of                    as sign language interpretation or other              Mooring System
                                                Health.                                                 reasonable accommodations, should
                                                                                                        notify the Contact Person listed below                      Coast Guard, DHS.
                                                                                                                                                              AGENCY:
                                                  The meeting will be closed to the
                                                public in accordance with the                           in advance of the meeting. The open                         Notice of intent; request for
                                                                                                                                                              ACTION:
                                                provisions set forth in sections                        session will be videocast and can be                  comments.
                                                552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,              accessed from the NIH Videocasting and
                                                                                                                                                              SUMMARY: The Coast Guard is
                                                as amended. The grant applications and                  Podcasting Web site (http://
                                                                                                        videocast.nih.gov).                                   announcing its intent to enter into a
                                                the discussions could disclose                                                                                Cooperative Research and Development
                                                confidential trade secrets or commercial                   Name of Committee: National Cancer                 Agreement (CRADA) with American
                                                property such as patentable material,                   Institute Council of Research Advocates.
                                                                                                                                                              Underwater Contractors, Inc. (AUC) to
                                                                                                           Date: September 25, 2017.
                                                and personal information concerning                        Time: 9:00 a.m. to 4:30 p.m.                       develop, demonstrate, evaluate and
                                                individuals associated with the grant                      Agenda: Welcome and Chairman’s                     document the use of environmentally
                                                applications, the disclosure of which                   Remarks, NCI Updates and Legislative                  friendly buoy mooring systems (line and
                                                would constitute a clearly unwarranted                  Update.                                               anchor) attached to a navigational buoy
                                                invasion of personal privacy.                              Place: National Institutes of Health, 40           to determine the feasibility and
                                                                                                        Convent Drive, Building 40, Conference                practicality of the Coast Guard using
                                                   Name of Committee: Advisory Committee                Rooms 1201/1203, Bethesda, MD 20892.                  both helix (screw) anchors and elastic
                                                to the Director, National Institutes of Health.            Contact Person: Amy Williams, NCI Office
                                                                                                                                                              mooring lines in environmentally
                                                   Date: September 14, 2017.                            of Advocacy Relations National Cancer
                                                   Time: 2:00 p.m. to 3:00 p.m.                         Institute, NIH, 31 Center Drive, Building 31,         sensitive areas. While the Coast Guard
                                                   Agenda: To review and evaluate grant                 Room 10A28, Bethesda, MD 20892, 240–781–              is currently considering partnering with
                                                applications.                                           3406 williaam@mail.nih.gov.                           AUC, we are soliciting public comment
                                                   Place: National Institutes of Health,                   Any interested person may file written             on the possible nature of and
                                                Building 1, One Center Drive, Bethesda, MD
                                                                                                        comments with the committee by forwarding             participation of other parties in the
                                                                                                        the statement to the Contact Person listed on         proposed CRADA. In addition, the Coast
                                                20892 (Telephone Conference Call).                      this notice. The statement should include the
                                                   Contact Person: Gretchen Wood, Staff                                                                       Guard also invites other potential non-
                                                                                                        name, address, telephone number and when              Federal participants, who have the
                                                Assistant, National Institutes of Health,               applicable, the business or professional
                                                Office of the Director, One Center Drive,               affiliation of the interested person.                 interest and capability to bring similar
                                                Building 1, Room 126, Bethesda, MD 20892,                  In the interest of security, NIH has               contributions to this type of research, to
                                                301–496–4272, Woodgs@od.nih.gov.                        instituted stringent procedures for entrance          consider submitting proposals for
                                                (Catalogue of Federal Domestic Assistance               onto the NIH campus. All visitor vehicles,            consideration in similar CRADAs.
                                                                                                        including taxicabs, hotel, and airport shuttles       DATES: Comments must be submitted to
                                                Program Nos. 93.14, Intramural Research
                                                                                                        will be inspected before being allowed on             the online docket via http://
                                                Training Award; 93.22, Clinical Research                campus. Visitors will be asked to show one
                                                Loan Repayment Program for Individuals                  form of identification (for example, a
                                                                                                                                                              www.regulations.gov, or reach the
                                                from Disadvantaged Backgrounds; 93.232,                 government-issued photo ID, driver’s license,         Docket Management Facility, on or
                                                Loan Repayment Program for Research                     or passport) and to state the purpose of their        before September 27, 2017.
                                                Generally; 93.39, Academic Research                     visit. Information is also available on the              Synopses of proposals regarding
sradovich on DSK3GMQ082PROD with NOTICES




                                                Enhancement Award; 93.936, NIH Acquired                 Institute’s/Center’s home page: NCRA: http://         future CRADAs must reach the Coast
                                                Immunodeficiency Syndrome Research Loan                 deainfo.nci.nih.gov/advisory/ncra/ncra.htm,           Guard (see FOR FURTHER INFORMATION
                                                Repayment Program; 93.187, Undergraduate                where an agenda and any additional                    CONTACT) on or before September 27,
                                                Scholarship Program for Individuals from                information for the meeting will be posted            2017.
                                                                                                        when available.
                                                Disadvantaged Backgrounds, National
                                                                                                        (Catalogue of Federal Domestic Assistance             ADDRESSES:  Submit comments online at
                                                Institutes of Health, HHS)
                                                                                                        Program Nos. 93.392, Cancer Construction;             http://www.regulations.gov following
                                                                                                        93.393, Cancer Cause and Prevention                   Web site instructions.


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Document Created: 2017-08-29 01:58:12
Document Modified: 2017-08-29 01:58:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesThis fee is effective October 1, 2017.
ContactDonald Prater, Office of Foods and Veterinary Medicine, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 1, Rm. 3234, Silver Spring, MD 20993, 301-348-3007.
FR Citation82 FR 41035 

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