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Chennai , Oct. 29

AS the US gears up to implement the Bioterrorism Act to tackle potential acts of terrorism through its food imports, manufacturers and exporters here are preparing to meet the stringent regulations that to them mean higher transaction costs and possible delays.

But whatever the cost, this is one market whose diktats exporters cannot ignore. The sheer size ensures obedience. Who can afford to do without a market that imports over 9 per cent, about $40 billion worth, of its total domestic consumption annually?

At a meeting organised by the Federation of Indian Export Organisations (Southern Region) here on Wednesday, Mr S. Bhattacharya, Dean, Indian Institute of Foreign Trade, said exporters have to upgrade their supply chain management systems to conform to the Bioterrorism Act. The Act aims to equip the US administration with information to react fast, if not prevent bioterrorism incidents.

Registering with the US Food and Drug Administration is part of the regulatory measures under the Act, which includes prior notice of imported foods, shipping and maintenance of records among food firms and the administrative detention of foods.

The exporters should register with the FDA by December 12 as part of the interim final regulation, prior to full implementation of the Act, which in full form reads Health Security and Bioterrorism Preparedness and Response Act, 2002. The Act applicable to domestic producers in the US and the exporters elsewhere covers those who manufacture, pack, process, distribute, receive or hold food for human or animal consumption in the US.

The FDA is providing a 75-day comment period, which will be followed up with another 30-day breather from March 2004 for those affected to react to specific issues concerning the regulations. The Act will then be implemented in its final form.

Mr Bhattacharya said with the provisions for traceability a key issue under the regulations, Indian companies would have to go for extensive computerisation of records. Unfortunately, most companies are not equipped to maintain detailed records that are needed under the provisions of the Act. Exporters will have to name an agent within the US who can be a point of contact for the US authorities, clarification on any issues will have to be given to the authorities within four hours during working hours and eight hours at other times.

It represents an opportunity for software firms in India to make available a product for the manufacturers to maintain such records.

Though market access issues are involved, exporters will have to simply toe the line since the US is looking at ensuring the safety of its citizens, and the regulations are applicable to its domestic producers as well, he said.

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