83_FR_62818 83 FR 62585 - Agency Information Collection Activities; Submission for Office of Management and Budget Review; Comment Request; Drug Supply Chain Security Act Implementation: Identification of Suspect Product and Notification

83 FR 62585 - Agency Information Collection Activities; Submission for Office of Management and Budget Review; Comment Request; Drug Supply Chain Security Act Implementation: Identification of Suspect Product and Notification

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Food and Drug Administration

Federal Register Volume 83, Issue 233 (December 4, 2018)

Page Range62585-62589
FR Document2018-26295

The Food and Drug Administration (FDA) is announcing that a proposed collection of information has been submitted to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995.

Federal Register, Volume 83 Issue 233 (Tuesday, December 4, 2018)
[Federal Register Volume 83, Number 233 (Tuesday, December 4, 2018)]
[Notices]
[Pages 62585-62589]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26295]


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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2014-D-0609]


Agency Information Collection Activities; Submission for Office 
of Management and Budget Review; Comment Request; Drug Supply Chain 
Security Act Implementation: Identification of Suspect Product and 
Notification

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing that a 
proposed collection of

[[Page 62586]]

information has been submitted to the Office of Management and Budget 
(OMB) for review and clearance under the Paperwork Reduction Act of 
1995.

DATES: Fax written comments on the collection of information by January 
3, 2019.

ADDRESSES: To ensure that comments on the information collection are 
received, OMB recommends that written comments be faxed to the Office 
of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer, 
Fax: 202-395-7285, or emailed to [email protected]. All 
comments should be identified with the OMB control number 0910-0806. 
Also include the FDA docket number found in brackets in the heading of 
this document.

FOR FURTHER INFORMATION CONTACT: JonnaLynn Capezzuto, Office of 
Operations, Food and Drug Administration, Three White Flint North, 10A-
12M, 11601 Landsdown St., North Bethesda, MD 20852, 301-796-3794, 
[email protected].

SUPPLEMENTARY INFORMATION: In compliance with 44 U.S.C. 3507, FDA has 
submitted the following proposed collection of information to OMB for 
review and clearance.

Guidance for Industry: Drug Supply Chain Security Act Implementation: 
Identification of Suspect Product and Notification

OMB Control Number 0910-0806--Extension

    This information collection supports the previously captioned 
Agency guidance and associated Form FDA 3911. The Drug Supply Chain 
Security Act (DSCSA) (Title II of Pub. L. 113-54) added new section 
582(h)(2) to the Federal Food, Drug, and Cosmetic Act (FD&C Act) (21 
U.S.C. 360eee-1(h)(2)), requiring FDA to issue guidance to aid trading 
partners in identifying a suspect product and terminating a 
notification regarding an illegitimate product and, for a manufacturer, 
a product with a high risk of illegitimacy. Suspect product is defined 
in section 581(21) of the FD&C Act (21 U.S.C. 360eee(21)), as a product 
for which there is reason to believe it: (1) Is potentially 
counterfeit, diverted, or stolen; (2) is potentially intentionally 
adulterated such that the product would result in serious adverse 
health consequences or death to humans; (3) is potentially the subject 
of a fraudulent transaction; or (4) appears otherwise unfit for 
distribution such that the product would result in serious adverse 
health consequences or death to humans.
    Beginning January 1, 2015, section 582 of the FD&C Act requires 
certain trading partners, upon determining that a product in their 
possession or control is a suspect product, to quarantine the product 
while they promptly conduct an investigation to determine whether the 
product is an illegitimate product. Illegitimate product is defined in 
section 581(8) of the FD&C Act as a product for which credible evidence 
shows that it: (1) Is counterfeit, diverted, or stolen; (2) is 
intentionally adulterated such that the product would result in serious 
adverse health consequences or death to humans; (3) is the subject of a 
fraudulent transaction; or (4) appears otherwise unfit for distribution 
such that the product would be reasonably likely to result in serious 
adverse health consequences or death to humans. Also beginning January 
1, 2015, trading partners must, upon determining that a product in 
their possession or control is illegitimate, notify FDA and all 
immediate trading partners that they have reason to believe they may 
have received the illegitimate product not later than 24 hours after 
making the determination. Under section 582(b)(4)(B)(ii)(II) of the 
FD&C Act, manufacturers are additionally required to notify FDA and any 
immediate trading partners that they believe may possess a product 
manufactured by or purportedly manufactured by the manufacturer not 
later than 24 hours after the determination is made or being notified 
by FDA or a trading partner that the product has a high risk of 
illegitimacy.
    Under section 202 of the DSCSA, manufacturers, repackagers, 
wholesale distributors, and dispensers (e.g., pharmacies) must: (1) 
Notify FDA when they have determined that a product in their possession 
or control is illegitimate (and, for manufacturers, when they have 
determined or been notified by FDA or a trading partner that a product 
has a high risk of illegitimacy); (2) notify certain immediate trading 
partners about an illegitimate product that they may have received 
(and, for manufacturers, that a product has a high risk of 
illegitimacy); (3) terminate notifications regarding illegitimate 
products (and, for manufacturers, a product with a high risk of 
illegitimacy), in consultation with FDA, when the notifications are no 
longer necessary; and (4) notify immediate trading partners when the 
notifications are terminated. Trading partners should use Form FDA 3911 
to submit notifications and requests for terminations of notifications 
to FDA. Form FDA 3911 is available on FDA's web page (https://www.accessdata.fda.gov/scripts/cder/email/drugnotification.cfm).

A. Notifications to FDA

    Under section 582(b)(4)(B)(ii)(I), (c)(4)(B)(ii), (d)(4)(B)(ii), 
and (e)(4)(B)(ii) of the FD&C Act, as amended by the DSCSA, and 
beginning not later than January 1, 2015, a manufacturer, repackager, 
wholesale distributor, or dispenser who determines that a product in 
its possession or control is illegitimate must notify FDA of that 
determination not later than 24 hours after the determination is made. 
In addition, section 582(b)(4)(B)(ii)(II) of the FD&C Act requires 
manufacturers to notify FDA when a manufacturer determines that a 
product poses a high risk of illegitimacy.
    We originally estimated that all manufacturers, repackagers, 
wholesale distributors, and dispensers would collectively submit 5,000 
notifications per year. This estimate included the notifications by 
trading partners that have determined that illegitimate product is in 
their possession or control, as well as notifications by manufacturers 
that have determined a product poses a high risk of illegitimacy. As 
discussed in our Federal Register notice of June 11, 2014 (79 FR 
33564), the estimate was based on our experience with field alert 
reports (Form FDA 3331) that holders of approved drug applications are 
required to submit for certain drug quality issues (21 CFR 
314.81(b)(1)) and with reports of the falsification of drug sample 
records, diversion, loss, and known theft of prescription drug samples 
as currently required under Sec.  203.37 (21 CFR 203.37). Upon 
evaluation of the number of notifications we received for fiscal years 
2016 and 2017, however, we are lowering our estimate to 150 
notifications.
    We are also combining the estimates for manufacturers and 
repackagers because FDA's establishment and drug product listing 
database indicates that many companies perform activities of both 
manufacturers and repackagers. Although the DSCSA specifically defines 
dispensers, for estimation purposes, we are using estimates for 
pharmacies in general terms based on those that must comply with the 
new requirements under section 582(d) of the FD&C Act.
    Because manufacturers, repackagers, and wholesale distributors are 
collectively responsible for prescription drugs from the point of 
manufacturing through distribution in the drug supply chain, we assume 
that most notifications of illegitimate products are

[[Page 62587]]

submitted by these three trading partners. The total number of 
respondents is comprised of 80 percent manufacturers (120), 15 percent 
wholesale distributors (22), and 5 percent pharmacies (8).
    We estimate that the number of annual notifications will vary from 
0 to 2 for manufacturers/repackagers, as well as from pharmacies, with 
the vast majority of companies making no notifications. Although FDA's 
establishment and drug product listing database currently contains 
registrations for approximately 6,500 manufacturers and repackagers, we 
estimate that approximately 120 manufacturers/repackagers will notify 
us of illegitimate products an average of one time per year. Although 
we estimate approximately 69,000 pharmacy sites in the United States, 
based on data from the National Association of Chain Drug Stores, the 
National Community Pharmacists Association, and the American Hospital 
Association, we estimate that approximately 8 pharmacies will notify 
FDA of illegitimate product an average of one time per year. According 
to the Healthcare Distribution Alliance (formerly known as Healthcare 
Distribution Management Association), approximately 30 wholesale 
distributors are responsible for over 90 percent of drug distributions; 
based on sales and because FDA is estimating that over 2,200 small 
wholesale distributors might be responsible for the remaining 10 
percent of drug sales, we estimate that wholesale distributors will be 
responsible for making about an average of 1 notification per year to 
account for the estimated 22 notifications that FDA will receive 
regarding illegitimate product. Each notification should include 
information about the person or entity initiating the notification, the 
product determined to be illegitimate or having a high risk of 
illegitimacy, and a description of the circumstances surrounding the 
event that prompted the notification. We estimate that each 
notification will take about 1 hour, as reflected in table 1.

B. Notifications to Trading Partners of an Illegitimate Product or 
Product With a High Risk of Illegitimacy

    Under section 582(b)(4)(B)(ii)(I), (c)(4)(B)(ii), (d)(4)(B)(ii), 
and (e)(4)(B)(ii) of the FD&C Act, a trading partner who determines 
that a product in its possession is illegitimate must also notify all 
immediate trading partners that they believe may have received such 
illegitimate product not later than 24 hours after the determination is 
made. In addition, under section 582(b)(4)(B)(ii)(II) of the FD&C Act, 
a manufacturer is required to notify all immediate trading partners 
that the manufacturer believes may possess a product manufactured by or 
purported to be manufactured by the manufacturer not later than 24 
hours after the determination is made or being notified by FDA or a 
trading partner that the product has a high risk of illegitimacy.
    Because the extent of distribution of any illegitimate product is 
likely to vary from one situation to another, we assume a wide 
distribution of each illegitimate product. We estimate that, for each 
notification made by a manufacturer or repackager to FDA, approximately 
30 trading partners (based on the number of distributors) will also be 
notified. This results in approximately 3,600 notifications annually to 
trading partners of manufacturers/repackagers. This estimate includes 
the notifications by manufacturers and repackagers who have determined 
that illegitimate product is in their possession or control, as well as 
notifications by manufacturers that have determined that a product 
poses a high risk of illegitimacy.
    We estimate that a large wholesale distributor may have up to 4,500 
trading partners, but a small wholesale distributor may have 200 
trading partners, for an average of approximately 2,350. We originally 
estimated that a wholesale distributor would notify all 2,350 trading 
partners for each of the illegitimate products identified. However, we 
are lowering our estimate as a result of our experience with the 
collection and informal feedback from industry to reflect that 22 
respondents will make 1,175 disclosures for a total of 25,850 
disclosures annually; and that each disclosure will require 
approximately 12 minutes, for a total of 5,170 hours annually.
    We estimate that a pharmacy purchases prescription drugs from an 
average of two wholesale distributors. Therefore, a pharmacy would 
notify 2 trading partners for each of the 8 illegitimate products 
identified, resulting in approximately 16 notifications annually to 
pharmacy trading partners.
    Manufacturers/repackagers, wholesale distributors, and pharmacies 
may notify their trading partners using existing systems and processes 
used for similar types of communications. Such communications may 
include, but are not limited to, posting notifications on a company 
website, sending an email, telephoning, or mailing or faxing a letter 
or notification. The information contained in the notification to the 
immediate trading partner should be the same as or based on the 
notification that was already submitted to FDA. We estimate that, for 
all trading partners, each notification of immediate trading partners 
will take approximately 0.2 hour (12 minutes). The estimated total 
burden hours that manufacturers/repackagers, wholesale distributors, 
and pharmacies will take to notify trading partners is approximately 
5,893 hours annually, as reflected in table 2.

C. Consultations With FDA and Termination of Notification

    Section 582(b)(4)(B)(iv), (c)(4)(B)(iv), (d)(4)(B)(iv), and 
(e)(4)(B)(iv) of the FD&C Act requires that a trading partner who 
determines, in consultation with FDA, that a notification made under 
section 582(b)(4)(B)(ii), (c)(4)(B)(ii), (d)(4)(B)(ii), or 
(e)(4)(B)(ii) is no longer necessary must terminate the notification. 
The guidance for industry sets forth the process by which trading 
partners should consult with FDA to terminate notifications that are no 
longer necessary.
    Each request for termination of notification must include 
information about the person or entity initiating the request for 
termination, the illegitimate product or product with a high risk of 
illegitimacy, the notification that was issued, and an explanation 
about what actions have taken place or what information has become 
available that make the notification no longer necessary. Trading 
partners should also include the FDA-assigned incident number 
associated with the initial notification on the request for 
termination. The request for a termination will be viewed as a request 
for consultation with FDA. We estimate that the same amount of time 
will be required to provide the information necessary to request 
termination as is required to make the notification. The time required 
to investigate and resolve an illegitimate product notification will 
vary, but we assume that each notification will eventually be 
terminated. We assume that the number of requests for termination of a 
notification per year will be the same as the original number of 
notifications for a given year. The estimated total burden hours of 
making requests for termination of notifications to FDA is 150 hours 
annually, as reflected in table 3.

D. Notifications to Trading Partners That a Notification Has Been 
Terminated

    Section 582(b)(4)(B)(iv), (c)(4)(B)(iv), (d)(4)(B)(iv), and 
(e)(4)(B)(iv) of the

[[Page 62588]]

FD&C Act requires that a trading partner who, in consultation with FDA, 
terminates a notification made under section 582(b)(4)(B)(ii)(I) or 
(II), (c)(4)(B)(ii), (d)(4)(B)(ii), or (e)(4)(B)(ii) must also promptly 
inform previously-notified immediate trading partners that the 
notification has been terminated. We estimate that the burden for 
notifying trading partners of an illegitimate product and the number of 
trading partners notified will be the same as the estimates for 
notification of termination. The estimated total burden hours of 
notifying trading partners that the notification is terminated is 
approximately 5,893 hours annually, as reflected in table 4.
    In the Federal Register of September 6, 2018 (83 FR 45254), FDA 
published a 60-day notice requesting public comment on the proposed 
collection of information. No comments were received.
    FDA estimates the burden of this collection of information as 
follows:

                      Table 1--Estimated Annual Reporting Burden--Notifications to FDA \1\
----------------------------------------------------------------------------------------------------------------
                                                   Number of
    Respondent description         Number of     responses per   Total annual    Average burden     Total hours
                                  respondents     respondent       responses      per response
----------------------------------------------------------------------------------------------------------------
Manufacturers and Repackagers.             120               1             120  1...............             120
Wholesale Distributors........              22               1              22  1...............              22
Dispensers....................               8               1               8  1...............               8
                               ---------------------------------------------------------------------------------
    Total.....................  ..............  ..............  ..............  ................             150
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.


Table 2--Estimated Annual Third-Party Disclosure Burden for Notifications to Trading Partners of an Illegitimate
                                                   Product \1\
----------------------------------------------------------------------------------------------------------------
                                                   Number of
    Respondent description         Number of      disclosures    Total annual    Average burden     Total hours
                                  respondents   per respondent    disclosures    per disclosure
----------------------------------------------------------------------------------------------------------------
Manufacturers and Repackagers.             120              30           3,600  0.20 (12                     720
                                                                                 minutes).
Wholesale Distributors........              22           1,175          25,850  0.20 (12                   5,170
                                                                                 minutes).
Dispensers....................               8               2              16  0.20 (12                       3
                                                                                 minutes).
                               ---------------------------------------------------------------------------------
    Total.....................  ..............  ..............  ..............  ................           5,893
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.


    Table 3--Estimated Annual Reporting Burden for Consultation With FDA and Termination of Notification \1\
----------------------------------------------------------------------------------------------------------------
                                                   Number of
    Respondent description         Number of     responses per   Total annual    Average burden     Total hours
                                  respondents     respondent       responses      per response
----------------------------------------------------------------------------------------------------------------
Manufacturers and Repackagers.             120               1             120  1...............             120
Wholesale Distributors........              22               1              22  1...............              22
Dispensers....................               8               1               8  1...............               8
                               ---------------------------------------------------------------------------------
    Total.....................  ..............  ..............  ..............  ................             150
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.


Table 4--Estimated Annual Third-Party Disclosure Burden for Notifications to Trading Partners of an Illegitimate
                                             Product Termination \1\
----------------------------------------------------------------------------------------------------------------
                                                   Number of
    Respondent description         Number of      disclosures    Total annual    Average burden     Total hours
                                  respondents   per respondent    disclosures    per disclosure
----------------------------------------------------------------------------------------------------------------
Manufacturers and Repackagers.             120              30           3,600  0.2 (12 minutes)             720
Wholesale Distributors........              22           1,175          25,850  0.2 (12 minutes)           5,170
Dispensers....................               8               2              16  0.2 (12 minutes)               3
                               ---------------------------------------------------------------------------------
    Total.....................  ..............  ..............  ..............  ................           5,893
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.


[[Page 62589]]

    Cumulatively, the total estimated burden is 12,086 annual hours, 
which reflects a significant decrease. We base this adjustment on our 
experience with the information collection since its establishment and 
implementation.

    Dated: November 28, 2018.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2018-26295 Filed 12-3-18; 8:45 am]
 BILLING CODE 4164-01-P



                                           Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices                                                                                               62585

                                                       TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1—Continued
                                                                                                                                  Annual
                                                                                                     Number of                                            Total annual                 Hours per
                        21 CFR section                                  FDA form No.                                            frequency                                                                      Total hours
                                                                                                    respondents                                            responses                   response
                                                                                                                               per response

     807.22(b)(2) 3—Other Updates of Reg-
       istration .................................................                      3673                      2,687                            1                    2,687                          0.5            1,344
     807.22(b)(3) 3—Annual Update of Listing
       Information ............................................                        3673                     22,607                              1                 22,607                           0.5           11,304
     807.26(e) 3—Labeling and Advertisement
       Submitted at FDA Request ..................                      ........................                      71                           1                         71                          1               71
     807.34(a) 2—Initial Registration and List-
       ing when Electronic Filing Waiver
       Granted .................................................        ........................                         1                          1                          1                          1                  1
     807.34(a) 3—Annual Registration and
       Listing when Electronic Filing Waiver
       Granted .................................................        ........................                         1                          1                          1                          1                  1
     807.40(b)(2) 3—Annual Update of US
       Agent Information .................................                              3673                      1,615                             1                   1,615                          0.5              808
     807.40(b)(3) 3—US Agent Responses to
       FDA Requests for Information .............                                       3673                      1,535                             1                   1,535                        0.25               384
     807.41(a) 3—Identification of Initial Im-
       porters by Foreign Establishments ......                                         3673                    12,983                             1                  12,983                           0.5            6,492
     807.41(b) 3—Identification of Other Par-
       ties that Facilitate Import by Foreign
       Establishments .....................................                             3673                   12,983                               1                 12,983                           0.5            6,492

           Total One Time Burden ....................                   ........................   ........................   ........................   ........................   ........................         14,975

                  Total Recurring Burden .............                  ........................   ........................   ........................   ........................   ........................         39,173
        1 Totals    are rounded to the nearest whole number.
        2 One-Time      Burden—Firm only provides initially.
        3 Recurring    Burden—Firm is required to review annually.

                                                               TABLE 2—ESTIMATED ANNUAL RECORDKEEPING BURDEN1
                                                                                                                                  Annual
                                                                                                     Number of                                            Total annual                 Hours per
                                     21 CFR section                                                                           frequency per                                                                    Total hours
                                                                                                    respondents                                             records                     record
                                                                                                                              recordkeeper

     807.25(d) 2—List of Officers, Directors, and Partners .........                                            22,338                              1                22,338                     .25                   5,585
                                                                                                                                                                                       (15 minutes)
     807.26 2—Labeling and Advertisements Available for Re-
       view ..................................................................................                  17,032                              4                 68,128                     .5                  34,064
                                                                                                                                                                                       (30 minutes)

           Total ..............................................................................    ........................   ........................   ........................   ........................         39,649
        1 There     are no capital costs or operating and maintenance costs associated with this collection of information.
        2 Recurring     burden—Firm is required to keep records.


        The following adjustments and                                           Annual Update of Listing Information’’                                       DEPARTMENT OF HEALTH AND
     program changes resulted in a 5,672-                                       (¥ 0.25 hours). Based on our review of                                       HUMAN SERVICES
     hour decrease to the overall total hour                                    the program, we believe these changes
     burden estimate for this information                                       to the burden estimate will more                                             Food and Drug Administration
     collection request.                                                        accurately reflect the current                                               [Docket No. FDA–2014–D–0609]
        • We adjusted the number of                                             preparation time for these ICs.
     respondents based on updated                                                                                                                            Agency Information Collection
     registration and listing data.                                               Dated: November 28, 2018.
                                                                                                                                                             Activities; Submission for Office of
        • In the reporting burden table, we                                     Leslie Kux,
                                                                                                                                                             Management and Budget Review;
     corrected the table footnotes to                                           Associate Commissioner for Policy.                                           Comment Request; Drug Supply Chain
     accurately indicate whether the                                            [FR Doc. 2018–26303 Filed 12–3–18; 8:45 am]                                  Security Act Implementation:
     information collection (IC) is a one-time                                  BILLING CODE 4164–01–P                                                       Identification of Suspect Product and
     or reoccurring burden.                                                                                                                                  Notification
        • We also adjusted some of the IC
     descriptions in the table for increased                                                                                                                 AGENCY:         Food and Drug Administration,
     clarity.                                                                                                                                                HHS.
        • We updated our estimate of Hours                                                                                                                   ACTION:        Notice.
     per Response for ‘‘807.22(a) Initial
     Registration and Listing’’ (+ 0.5 hours),                                                                                                               SUMMARY:   The Food and Drug
     ‘‘807.22(b)(1) Annual Registration’’                                                                                                                    Administration (FDA) is announcing
     (¥ 0.25 hours), and ‘‘807.22(b)(3)                                                                                                                      that a proposed collection of


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     62586                       Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices

     information has been submitted to the                      Beginning January 1, 2015, section                 web page (https://
     Office of Management and Budget                         582 of the FD&C Act requires certain                  www.accessdata.fda.gov/scripts/cder/
     (OMB) for review and clearance under                    trading partners, upon determining that               email/drugnotification.cfm).
     the Paperwork Reduction Act of 1995.                    a product in their possession or control
                                                                                                                   A. Notifications to FDA
     DATES: Fax written comments on the                      is a suspect product, to quarantine the
     collection of information by January 3,                 product while they promptly conduct                      Under section 582(b)(4)(B)(ii)(I),
     2019.                                                   an investigation to determine whether                 (c)(4)(B)(ii), (d)(4)(B)(ii), and (e)(4)(B)(ii)
                                                             the product is an illegitimate product.               of the FD&C Act, as amended by the
     ADDRESSES: To ensure that comments on
                                                             Illegitimate product is defined in                    DSCSA, and beginning not later than
     the information collection are received,                                                                      January 1, 2015, a manufacturer,
     OMB recommends that written                             section 581(8) of the FD&C Act as a
                                                             product for which credible evidence                   repackager, wholesale distributor, or
     comments be faxed to the Office of                                                                            dispenser who determines that a
     Information and Regulatory Affairs,                     shows that it: (1) Is counterfeit, diverted,
                                                             or stolen; (2) is intentionally adulterated           product in its possession or control is
     OMB, Attn: FDA Desk Officer, Fax: 202–                                                                        illegitimate must notify FDA of that
     395–7285, or emailed to oira_                           such that the product would result in
                                                             serious adverse health consequences or                determination not later than 24 hours
     submission@omb.eop.gov. All                                                                                   after the determination is made. In
     comments should be identified with the                  death to humans; (3) is the subject of a
                                                             fraudulent transaction; or (4) appears                addition, section 582(b)(4)(B)(ii)(II) of
     OMB control number 0910–0806. Also                                                                            the FD&C Act requires manufacturers to
     include the FDA docket number found                     otherwise unfit for distribution such
                                                             that the product would be reasonably                  notify FDA when a manufacturer
     in brackets in the heading of this                                                                            determines that a product poses a high
     document.                                               likely to result in serious adverse health
                                                             consequences or death to humans. Also                 risk of illegitimacy.
     FOR FURTHER INFORMATION CONTACT:                                                                                 We originally estimated that all
                                                             beginning January 1, 2015, trading
     JonnaLynn Capezzuto, Office of                                                                                manufacturers, repackagers, wholesale
                                                             partners must, upon determining that a
     Operations, Food and Drug                                                                                     distributors, and dispensers would
                                                             product in their possession or control is
     Administration, Three White Flint                                                                             collectively submit 5,000 notifications
                                                             illegitimate, notify FDA and all
     North, 10A–12M, 11601 Landsdown St.,                                                                          per year. This estimate included the
                                                             immediate trading partners that they
     North Bethesda, MD 20852, 301–796–                                                                            notifications by trading partners that
                                                             have reason to believe they may have
     3794, PRAStaff@fda.hhs.gov.                                                                                   have determined that illegitimate
                                                             received the illegitimate product not
     SUPPLEMENTARY INFORMATION: In                                                                                 product is in their possession or control,
                                                             later than 24 hours after making the
     compliance with 44 U.S.C. 3507, FDA                                                                           as well as notifications by
                                                             determination. Under section
     has submitted the following proposed                                                                          manufacturers that have determined a
                                                             582(b)(4)(B)(ii)(II) of the FD&C Act,                 product poses a high risk of
     collection of information to OMB for                    manufacturers are additionally required
     review and clearance.                                                                                         illegitimacy. As discussed in our
                                                             to notify FDA and any immediate                       Federal Register notice of June 11, 2014
     Guidance for Industry: Drug Supply                      trading partners that they believe may                (79 FR 33564), the estimate was based
     Chain Security Act Implementation:                      possess a product manufactured by or                  on our experience with field alert
     Identification of Suspect Product and                   purportedly manufactured by the                       reports (Form FDA 3331) that holders of
     Notification                                            manufacturer not later than 24 hours                  approved drug applications are required
                                                             after the determination is made or being              to submit for certain drug quality issues
     OMB Control Number 0910–0806—                           notified by FDA or a trading partner that             (21 CFR 314.81(b)(1)) and with reports
     Extension                                               the product has a high risk of                        of the falsification of drug sample
        This information collection supports                 illegitimacy.                                         records, diversion, loss, and known
     the previously captioned Agency                            Under section 202 of the DSCSA,                    theft of prescription drug samples as
     guidance and associated Form FDA                        manufacturers, repackagers, wholesale                 currently required under § 203.37 (21
     3911. The Drug Supply Chain Security                    distributors, and dispensers (e.g.,                   CFR 203.37). Upon evaluation of the
     Act (DSCSA) (Title II of Pub. L. 113–54)                pharmacies) must: (1) Notify FDA when                 number of notifications we received for
     added new section 582(h)(2) to the                      they have determined that a product in                fiscal years 2016 and 2017, however, we
     Federal Food, Drug, and Cosmetic Act                    their possession or control is                        are lowering our estimate to 150
     (FD&C Act) (21 U.S.C. 360eee–1(h)(2)),                  illegitimate (and, for manufacturers,                 notifications.
     requiring FDA to issue guidance to aid                  when they have determined or been                        We are also combining the estimates
     trading partners in identifying a suspect               notified by FDA or a trading partner that             for manufacturers and repackagers
     product and terminating a notification                  a product has a high risk of                          because FDA’s establishment and drug
     regarding an illegitimate product and,                  illegitimacy); (2) notify certain                     product listing database indicates that
     for a manufacturer, a product with a                    immediate trading partners about an                   many companies perform activities of
     high risk of illegitimacy. Suspect                      illegitimate product that they may have               both manufacturers and repackagers.
     product is defined in section 581(21) of                received (and, for manufacturers, that a              Although the DSCSA specifically
     the FD&C Act (21 U.S.C. 360eee(21)), as                 product has a high risk of illegitimacy);             defines dispensers, for estimation
     a product for which there is reason to                  (3) terminate notifications regarding                 purposes, we are using estimates for
     believe it: (1) Is potentially counterfeit,             illegitimate products (and, for                       pharmacies in general terms based on
     diverted, or stolen; (2) is potentially                 manufacturers, a product with a high                  those that must comply with the new
     intentionally adulterated such that the                 risk of illegitimacy), in consultation                requirements under section 582(d) of
     product would result in serious adverse                 with FDA, when the notifications are no               the FD&C Act.
     health consequences or death to                         longer necessary; and (4) notify                         Because manufacturers, repackagers,
     humans; (3) is potentially the subject of               immediate trading partners when the                   and wholesale distributors are
     a fraudulent transaction; or (4) appears                notifications are terminated. Trading                 collectively responsible for prescription
     otherwise unfit for distribution such                   partners should use Form FDA 3911 to                  drugs from the point of manufacturing
     that the product would result in serious                submit notifications and requests for                 through distribution in the drug supply
     adverse health consequences or death to                 terminations of notifications to FDA.                 chain, we assume that most
     humans.                                                 Form FDA 3911 is available on FDA’s                   notifications of illegitimate products are


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                                 Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices                                             62587

     submitted by these three trading                        582(b)(4)(B)(ii)(II) of the FD&C Act, a               contained in the notification to the
     partners. The total number of                           manufacturer is required to notify all                immediate trading partner should be the
     respondents is comprised of 80 percent                  immediate trading partners that the                   same as or based on the notification that
     manufacturers (120), 15 percent                         manufacturer believes may possess a                   was already submitted to FDA. We
     wholesale distributors (22), and 5                      product manufactured by or purported                  estimate that, for all trading partners,
     percent pharmacies (8).                                 to be manufactured by the manufacturer                each notification of immediate trading
        We estimate that the number of                       not later than 24 hours after the                     partners will take approximately 0.2
     annual notifications will vary from 0 to                determination is made or being notified               hour (12 minutes). The estimated total
     2 for manufacturers/repackagers, as well                by FDA or a trading partner that the                  burden hours that manufacturers/
     as from pharmacies, with the vast                       product has a high risk of illegitimacy.              repackagers, wholesale distributors, and
     majority of companies making no                            Because the extent of distribution of              pharmacies will take to notify trading
     notifications. Although FDA’s                           any illegitimate product is likely to vary            partners is approximately 5,893 hours
     establishment and drug product listing                  from one situation to another, we                     annually, as reflected in table 2.
     database currently contains registrations               assume a wide distribution of each
     for approximately 6,500 manufacturers                   illegitimate product. We estimate that,               C. Consultations With FDA and
     and repackagers, we estimate that                       for each notification made by a                       Termination of Notification
     approximately 120 manufacturers/                        manufacturer or repackager to FDA,                       Section 582(b)(4)(B)(iv), (c)(4)(B)(iv),
     repackagers will notify us of illegitimate              approximately 30 trading partners                     (d)(4)(B)(iv), and (e)(4)(B)(iv) of the
     products an average of one time per                     (based on the number of distributors)                 FD&C Act requires that a trading partner
     year. Although we estimate                              will also be notified. This results in                who determines, in consultation with
     approximately 69,000 pharmacy sites in                  approximately 3,600 notifications                     FDA, that a notification made under
     the United States, based on data from                   annually to trading partners of                       section 582(b)(4)(B)(ii), (c)(4)(B)(ii),
     the National Association of Chain Drug                  manufacturers/repackagers. This                       (d)(4)(B)(ii), or (e)(4)(B)(ii) is no longer
     Stores, the National Community                          estimate includes the notifications by                necessary must terminate the
     Pharmacists Association, and the                        manufacturers and repackagers who                     notification. The guidance for industry
     American Hospital Association, we                       have determined that illegitimate                     sets forth the process by which trading
     estimate that approximately 8                           product is in their possession or control,            partners should consult with FDA to
     pharmacies will notify FDA of                           as well as notifications by                           terminate notifications that are no
     illegitimate product an average of one                  manufacturers that have determined                    longer necessary.
     time per year. According to the                         that a product poses a high risk of                      Each request for termination of
     Healthcare Distribution Alliance                        illegitimacy.                                         notification must include information
     (formerly known as Healthcare                              We estimate that a large wholesale                 about the person or entity initiating the
     Distribution Management Association),                   distributor may have up to 4,500 trading              request for termination, the illegitimate
     approximately 30 wholesale distributors                 partners, but a small wholesale                       product or product with a high risk of
     are responsible for over 90 percent of                  distributor may have 200 trading                      illegitimacy, the notification that was
     drug distributions; based on sales and                  partners, for an average of                           issued, and an explanation about what
     because FDA is estimating that over                     approximately 2,350. We originally                    actions have taken place or what
     2,200 small wholesale distributors                      estimated that a wholesale distributor                information has become available that
     might be responsible for the remaining                  would notify all 2,350 trading partners               make the notification no longer
     10 percent of drug sales, we estimate                   for each of the illegitimate products                 necessary. Trading partners should also
     that wholesale distributors will be                     identified. However, we are lowering                  include the FDA-assigned incident
     responsible for making about an average                 our estimate as a result of our                       number associated with the initial
     of 1 notification per year to account for               experience with the collection and                    notification on the request for
     the estimated 22 notifications that FDA                 informal feedback from industry to                    termination. The request for a
     will receive regarding illegitimate                     reflect that 22 respondents will make                 termination will be viewed as a request
     product. Each notification should                       1,175 disclosures for a total of 25,850               for consultation with FDA. We estimate
     include information about the person or                 disclosures annually; and that each                   that the same amount of time will be
     entity initiating the notification, the                 disclosure will require approximately                 required to provide the information
     product determined to be illegitimate or                12 minutes, for a total of 5,170 hours                necessary to request termination as is
     having a high risk of illegitimacy, and                 annually.                                             required to make the notification. The
     a description of the circumstances                         We estimate that a pharmacy                        time required to investigate and resolve
     surrounding the event that prompted                     purchases prescription drugs from an                  an illegitimate product notification will
     the notification. We estimate that each                 average of two wholesale distributors.                vary, but we assume that each
     notification will take about 1 hour, as                 Therefore, a pharmacy would notify 2                  notification will eventually be
     reflected in table 1.                                   trading partners for each of the 8                    terminated. We assume that the number
                                                             illegitimate products identified,                     of requests for termination of a
     B. Notifications to Trading Partners of                 resulting in approximately 16                         notification per year will be the same as
     an Illegitimate Product or Product With                 notifications annually to pharmacy                    the original number of notifications for
     a High Risk of Illegitimacy                             trading partners.                                     a given year. The estimated total burden
        Under section 582(b)(4)(B)(ii)(I),                      Manufacturers/repackagers, wholesale               hours of making requests for
     (c)(4)(B)(ii), (d)(4)(B)(ii), and (e)(4)(B)(ii)         distributors, and pharmacies may notify               termination of notifications to FDA is
     of the FD&C Act, a trading partner who                  their trading partners using existing                 150 hours annually, as reflected in
     determines that a product in its                        systems and processes used for similar                table 3.
     possession is illegitimate must also                    types of communications. Such
     notify all immediate trading partners                   communications may include, but are                   D. Notifications to Trading Partners
     that they believe may have received                     not limited to, posting notifications on              That a Notification Has Been
     such illegitimate product not later than                a company website, sending an email,                  Terminated
     24 hours after the determination is                     telephoning, or mailing or faxing a letter              Section 582(b)(4)(B)(iv), (c)(4)(B)(iv),
     made. In addition, under section                        or notification. The information                      (d)(4)(B)(iv), and (e)(4)(B)(iv) of the


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     62588                                Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices

     FD&C Act requires that a trading partner                                     trading partners of an illegitimate                                             In the Federal Register of September
     who, in consultation with FDA,                                               product and the number of trading                                            6, 2018 (83 FR 45254), FDA published
     terminates a notification made under                                         partners notified will be the same as the                                    a 60-day notice requesting public
     section 582(b)(4)(B)(ii)(I) or (II),                                         estimates for notification of termination.                                   comment on the proposed collection of
     (c)(4)(B)(ii), (d)(4)(B)(ii), or (e)(4)(B)(ii)                               The estimated total burden hours of                                          information. No comments were
     must also promptly inform previously-                                        notifying trading partners that the                                          received.
     notified immediate trading partners that                                     notification is terminated is
     the notification has been terminated. We                                     approximately 5,893 hours annually, as                                          FDA estimates the burden of this
     estimate that the burden for notifying                                       reflected in table 4.                                                        collection of information as follows:

                                           TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN—NOTIFICATIONS TO FDA 1
                                                                                                                 Number of                                                        Average
                                                                                      Number of                                             Total annual
                       Respondent description                                                                  responses per                                                    burden per                      Total hours
                                                                                     respondents                                             responses
                                                                                                                 respondent                                                      response

     Manufacturers and Repackagers .........................                                          120                           1                        120      1 ....................................             120
     Wholesale Distributors .........................................                                  22                           1                         22      1 ....................................              22
     Dispensers ...........................................................                             8                           1                          8      1 ....................................               8

           Total ..............................................................     ........................   ........................    ........................   .......................................            150
        1 There    are no capital costs or operating and maintenance costs associated with this collection of information.

        TABLE 2—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN FOR NOTIFICATIONS TO TRADING PARTNERS OF AN
                                              ILLEGITIMATE PRODUCT 1
                                                                                                                  Number of                                                      Average
                                                                                       Number of                  disclosures                Total annual
                       Respondent description                                                                                                                                   burden per                      Total hours
                                                                                      respondents                     per                    disclosures                        disclosure
                                                                                                                  respondent

     Manufacturers and Repackagers .........................                                          120                        30                      3,600        0.20 (12 minutes) .........                        720
     Wholesale Distributors ..........................................                                 22                     1,175                     25,850        0.20 (12 minutes) .........                      5,170
     Dispensers ............................................................                            8                         2                         16        0.20 (12 minutes) .........                          3

           Total ...............................................................    ........................   ........................    ........................   .......................................          5,893
        1 There    are no capital costs or operating and maintenance costs associated with this collection of information.

      TABLE 3—ESTIMATED ANNUAL REPORTING BURDEN FOR CONSULTATION WITH FDA AND TERMINATION OF NOTIFICATION 1
                                                                                                                 Number of                                                        Average
                                                                                      Number of                                             Total annual
                       Respondent description                                                                  responses per                                                    burden per                      Total hours
                                                                                     respondents                                             responses
                                                                                                                 respondent                                                      response

     Manufacturers and Repackagers .........................                                          120                           1                        120      1 ....................................             120
     Wholesale Distributors .........................................                                  22                           1                         22      1 ....................................              22
     Dispensers ...........................................................                             8                           1                          8      1 ....................................               8

           Total ..............................................................     ........................   ........................    ........................   .......................................            150
        1 There    are no capital costs or operating and maintenance costs associated with this collection of information.

        TABLE 4—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN FOR NOTIFICATIONS TO TRADING PARTNERS OF AN
                                        ILLEGITIMATE PRODUCT TERMINATION 1
                                                                                                                  Number of                                                      Average
                                                                                       Number of                  disclosures                Total annual
                       Respondent description                                                                                                                                   burden per                      Total hours
                                                                                      respondents                     per                    disclosures                        disclosure
                                                                                                                  respondent

     Manufacturers and Repackagers .........................                                          120                        30                      3,600        0.2 (12 minutes) ...........                       720
     Wholesale Distributors ..........................................                                 22                     1,175                     25,850        0.2 (12 minutes) ...........                     5,170
     Dispensers ............................................................                            8                         2                         16        0.2 (12 minutes) ...........                         3

           Total ...............................................................    ........................   ........................    ........................   .......................................          5,893
        1 There    are no capital costs or operating and maintenance costs associated with this collection of information.




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                                 Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices                                           62589

       Cumulatively, the total estimated                     comment will be made public, you are                  both copies to the Dockets Management
     burden is 12,086 annual hours, which                    solely responsible for ensuring that your             Staff. If you do not wish your name and
     reflects a significant decrease. We base                comment does not include any                          contact information to be made publicly
     this adjustment on our experience with                  confidential information that you or a                available, you can provide this
     the information collection since its                    third party may not wish to be posted,                information on the cover sheet and not
     establishment and implementation.                       such as medical information, your or                  in the body of your comments and you
       Dated: November 28, 2018.                             anyone else’s Social Security number, or              must identify this information as
                                                             confidential business information, such               ‘‘confidential.’’ Any information marked
     Leslie Kux,
                                                             as a manufacturing process. Please note               as ‘‘confidential’’ will not be disclosed
     Associate Commissioner for Policy.
                                                             that if you include your name, contact                except in accordance with 21 CFR 10.20
     [FR Doc. 2018–26295 Filed 12–3–18; 8:45 am]             information, or other information that                and other applicable disclosure law. For
     BILLING CODE 4164–01–P                                  identifies you in the body of your                    more information about FDA’s posting
                                                             comments, that information will be                    of comments to public dockets, see 80
                                                             posted on https://www.regulations.gov.                FR 56469, September 18, 2015, or access
     DEPARTMENT OF HEALTH AND                                  • If you want to submit a comment                   the information at: https://www.gpo.gov/
     HUMAN SERVICES                                          with confidential information that you                fdsys/pkg/FR-2015-09-18/pdf/2015-
                                                             do not wish to be made available to the               23389.pdf.
     Food and Drug Administration                            public, submit the comment as a                          Docket: For access to the docket to
     [Docket No. FDA–2017–D–5928]                            written/paper submission and in the                   read background documents or the
                                                             manner detailed (see ‘‘Written/Paper                  electronic and written/paper comments
     Post-Complete Response Letter                           Submissions’’ and ‘‘Instructions’’).                  received, go to https://
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Document Created: 2018-12-04 00:42:07
Document Modified: 2018-12-04 00:42:07
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.
DatesFax written comments on the collection of information by January 3, 2019.
ContactJonnaLynn Capezzuto, Office of Operations, Food and Drug Administration, Three White Flint North, 10A- 12M, 11601 Landsdown St., North Bethesda, MD 20852, 301-796-3794, [email protected]
FR Citation83 FR 62585 

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