Hallochem Pharma Co.,Ltd. 

HALLOCHEM PHARMA CO.,LTD '^HcavEo 

Respondent, ^>R " 5 2t 9 

DOCKET 

FEDERAL AVIATION ADMINISTRATION 

Complainant. 

Case NO.2009NE700225 

Date: March 25, 2010 

ANSWER 

The Hallochem Pharma Co.,Ltd (Hallochem)hereby files its answer and states 

the following: 

1. Item 1 of the Complaint: deny 

(1) On April 15th, 2009, Hallochem has reached a Purchase Order with Alfa 

Aesar According to that Purchase Order, Alfa Aesar has purchased 25KG Antimony 

(III), and the parties have chosen the FOB terms. 

(2) As we all know, if FOB is adopted in the international trade, it is the 

purchaser's obligation to appoint the carrier; the seller shall only have the obligation 

to handover the goods to the carrier. After that, Hallochem has fulfilled all the 

obligations as the vendor. It is the buyer who should deal with the procedures for 

entry. 

(3) More importantly, in the above mentioned purchase contract, Alfa Aesar has 

clearly required that the goods shall be shipped via FedEx, and Alfa Aesar has told 

Hallochem his Account Number of FedEx (1319-3098-4) in the Purchase Order. 

Pursuant to that purchase contract, Hallochem delivered the goods (Antimony (ill) to 

FedEx, and FedEx shipped them to Alfa Aesar. The carriage fee arose from the 

shipment was also paid by Alfa Aesar. Obviously, although Hallochem "offered" the 

goods to FedEx, Hallochem is not the true consignor. 

2. Item 2 of the Complaint: admit 

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Alfa Aesar , rather than Hallochem, is the actual consignor for the shipment. 

3. Item 3 of the Complaint: admit 

4. Item4 of the Complaint: admit 

(1) We must emphasize the fact that Hallochem is not the consignor. 

(2) We just have the obligation to finish the custom formalities for exportation. 

5. Item 5 of the Complaint: lack of information to admit or deny 

6. Item 6 of the Complaint: 

We admit clause a ,but for clause b ,we do not have the enough information to 

admit or deny. 

7. Item 7of the Complaint: admit 

We must emphasize the fact that Hallochem is not the consignor. 

8. Item 8 of the Complaint: admit 

We must emphasize the fact that Hallochem is not the consignor 

9. Item 9 of the Complaint: deny 

(1) Based on the foregoing, Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. 

(2) When we handover the shipment to FedEx, Hallochem have clearly 

described the name of the substance to be transported, which is Antimony(lll). 

(3) Fed Ex failed to fulfill its obligation of notification. When FedEx has accepted 

the package, he didn't put forward any objections relating to the classification, 

description, mark and label regarding to the shipment. 

(4) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(5) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 
10. Item 10 of the Complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor. Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) We understand that Antimony (III) is a kind of chemical substance. Actually, 

we have required Alfa Aesar to provide the certification for entry. When we reach the 

Purchase Order with Alfa Aesar, on the basis of our requirement, Alfa Aesar issued a 

"Toxic Substance Control Act Certification". Then, Hallochem delivered the 

above-described shipment to FedEx after Hallochem got the certificate issued by Alfa 

Aesar Since Alfa Aesar is an US company and the shipment we delivered is the 

sample the quantity of which is just 25kg, we have every reason to believe that Alfa 

Aesar's certification is true and the above-described shipment for entry is not in 

violation of any applicable rule or order hereunder 

(3) Fed Ex failed to fulfill its obligation of notification. When FedEx has accepted 

the package, he didn't put forward any objections relating to the classification, 

description, mark and label regarding to the shipment. 

(4) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(5) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

11. Item 11 of the Complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor. Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) We understand that Antimony (III) is a kind of chemical substance. Actually, 

we have required Alfa Aesar to provide the certification for entry. When we reach the 

Purchase Order with Alfa Aesar, on the basis of our requirement, Alfa Aesar issued a 

"Toxic Substance Control Act Certification". Then, Hallochem delivered the 

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above-described shipment to FedEx after Hallochem got the certificate issued by Alfa 

Aesar. Since Alfa Aesar is an US company and the shipment we delivered is the 

sample the quantity of which is just 25kg, we have every reason to believe that Alfa 

Aesar's certification is true and the above-described shipment for entry is not in 

violation of any applicable rule or order hereunder. 

(3) Fed Ex failed to fulfill its obligation of notification. When FedEx has accepted 

the package, he didn't put forward any objections relating to the classification, 

description, mark and label regarding to the shipment. 

(4) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(5) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

12. Item 12 of the Complaint: deny 

i (1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) When we handover the shipment to FedEx, Hallochem have clearly 

1 described the name of the substance to be transported, which is Antimony(lll). 

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(3) When FedEx has accepted the package, he didn't put forward any objections 

j relating to the classification, description, mark and label regarding to the shipment. 

\ (4) If FedEx accept the package without any objection, Hallochem has the 

\ reason to believe that the package satisfy all the requirements of the U.S.A. 

i 

13. Item 13 of the Complaint: deny 

I (1) We must emphasize that Hallochem is not the true consignor Actually, it is 

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\ the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

I for fulfilling all the procedures for import. 

I (2) We understand that Antimony (III) is a kind of chemical substance. Actually, 

1 

j we have required Alfa Aesar to provide the certification for entry. When we reach the 

I 

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Purchase Order with Alfa Aesar, on the basis of our requirement, Alfa Aesar issued a 

"Toxic Substance Control Act Certification". Then, Hallochem delivered the 

above-described shipment to FedEx after Hallochem got the certificate issued by Alfa 

Aesar. Since Alfa Aesar is an US company and the shipment we delivered is the 

sample the quantity of which is just 25kg, we have every reason to believe that Alfa 

Aesar's certification is true and the above-described shipment for entry is not in 

violation of any applicable rule or order hereunder. 

(3) Fed Ex failed to fulfill its obligation of notification. When FedEx has accepted 

the package, he didn't put forward any objections relating to the classification, 

description, mark and label regarding to the shipment. 

(4) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(5) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

14. Item 14 of the Complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) When we handover the shipment to FedEx, Hallochem have clearly 

described the quantity of the shipment we offered just cost $ 1100 the quantity of 

which is 25 kg. 

15. Item 15 of the Complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) We understand that Antimony (III) is a kind of chemical substance. Actually, 

we have required Alfa Aesar to provide the certification for entry. When we reach the 

Purchase Order with Alfa Aesar, on the basis of our requirement, Alfa Aesar issued a 
"Toxic Substance Control Act Certification". Then, Hallochem delivered the 

above-described shipment to FedEx after Hallochem got the certificate issued by Alfa 

Aesar Since Alfa Aesar is an US company and the shipment we delivered is the 

sample the quantity of which is just 25kg, we have every reason to believe that Alfa 

Aesar's certification is true and the above-described shipment for entry is not in 

violation of any applicable rule or order hereunder 

(3) After Hallochem received the Certification, Hallochem then agreed to deliver 

Antimony (III) to FedEx pursuant to the Purchase Order 

(4) As mentioned above, now that in the purchased order we and Alfa Aesar 

choose the FOB term, we only have the obligation to ship the goods to the port of 

the seller, after that, it is the Purchaser who is responsible for the shipment from the 

port of the Seller to the destination. Therefore, Alfa Aesar as the purchaser should 

deal with the procedures for entry .Based on the certification of the Alfa Asear, we 

can believe that the shipment for transportation has got all the required certification. 

16. Item 16 of the Complaint: deny 

(1) In view of FOB term in the purchase order, it is the obligation of Alfa Aesar to 

take charge of the shipment from China to the destination in the U.S.A. After 

Hallochem has delivered the goods in China, then Alfa Aesar shall take all the risks 

and other responsibilities. 

(2) As the real shipper of this transportation, Alfa Aesar should provide the 

copies of the required shipper's certification rather than us. 

17. Item 17 of the complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) Fed Ex failed to fulfill its obligation of notification. When FedEx has accepted 

the package, he didn't put forward any objections relating to the classification, 

description, mark and label regarding to the shipment. 

(3) As an international and reputable expedited delivery company. Fed Ex should 

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have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(4) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

18. Item 18 of the complaint: deny 

(1) We must emphasize the fact that Hallochem is not the consignor Actually, it 

is the Alfa Aesar who offered the shipment to the Fed Ex. 

(2) When we handover the shipment to FedEx, Hallochem have clearly 

described the name of the substance to be transported, which is Antimony(lll). 

(3) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(4) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

19. Item 19of the complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) When FedEx has accepted the package, he didn't put forward any objections 

relating to the classification, description, mark and label regarding to the shipment. 

(3) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(4) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

20. Item 20 of the complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 
for fulfilling all the procedures for import. 

(2) When FedEx has accepted the package, he didn't put forward any objections 

relating to the classification, description, mark and label regarding to the shipment. 

(3) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(4) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

21. Item 21 of the complaint: deny 

(1) As the above mentioned, FOB is adopted in the international trade. It is the 

purchaser's obligation to appoint the carrier, the seller shall only have the obligation 

to handover the goods to the carrier In this case, it is the obligation of Alfa Aesar to 

take charge of the shipment from China to the destination in the U.S.A. After 

Hallochem has delivered the goods in China, then Alfa Aesar shall take all the risks 

and other responsibilities. 

(2) Therefore, Alfa Aesar rather us, should make emergency response 

information immediately available for use. 

22. Item 22 of the complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) We have performed our reasonable care according to the purchase order in 

good faith. 

(3) When FedEx has accepted the package, he didn't put forward any objections 

relating to the classification, description, mark and label regarding to the shipment. 

(4) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

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(5) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

23. Item 23 of the complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) As an international and reputable expedited delivery company. Fed Ex should 

have refused to accept the shipment, which did not comply with the orders of 

destination country. 

(3) If FedEx accept the package without any objection, Hallochem has the 

reason to believe that the package satisfy all the requirements of the U.S.A. 

24. Item 24of the Complaint: deny 

(1) We must emphasize that Hallochem is not the true consignor Actually, it is 

the Alfa Aesar who offered the shipment to the Fed Ex. Alfa Aesar should responsible 

for fulfilling all the procedures for import. 

(2) We feel sorry to the bad effect caused by the leakage to the environment. 

We believe it is an accident. We promise that we will do our best to avoid this kind of 

accident to happen again. 

25. Item 24of the Complaint: deny 

Alfa Aesar , rather than Hallochem, is the actual consignor for the shipment. 

(1) On April IS**', 2009, Hallochem has reached a Purchase Order with Alfa Aesar 

According to that Purchase Order, Alfa Aesar has purchased 25KG Antimony (III), and 

the parties have chosen the FOB terms. As we all know, if FOB is adopted in the 

international trade, it is the purchaser's obligation to appoint the carrier.Tthe seller 

shall only have the obligation to handover the goods to the carrier and prepare all 

the formalities for exportation. After that, it is the Purchaser who is responsible for 

the shipment especially for finish the procedures for entry. In this case, it is the 

obligation of Alfa Aesar to appoint the carrier and take charge of the shipment from 

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China to the destination in the U.S.A. After Hallochem has delivered the goods in 

China, then Alfa Aesar shall take all the risks and other responsibilities. Therefore, we 

believe that it is unfair to penalize Hallochem. 

(2) More importantly, in the above mentioned purchase contract, Alfa Aesar has 

clearly required that the goods shall be shipped via FedEx, and Alfa Aesar has told 

Hallochem his Account Number of FedEx (1319-3098-4) in the Purchase Order 

Pursuant to that purchase contract, Hallochem delivered the goods (Antimony (III) to 

FedEx, and FedEx shipped them to Alfa Aesar The carriage fee arose from the 

shipment was also paid by Alfa Aesar Obviously, although Hallochem "offered" the 

goods to FedEx, Hallochem is not the true consignor We think it is absolutely wrong 

and unfair to propose the penalty to Hallochem in such a large amount. 

26. item 26 of the Complaint: deny 

As above mentioned, Hallochem is not the real consignor, unfair to 

propose the penalty to Hallochem in such a large amount. 

27. Item 27 of the Complaint: deny 

(1) Based on the forgoing, Alfa Aesar is the actual consignor for the shipment. 

(2) It is our first time to sign the contract the subject-matter of which is the 

chemical substance, with the US Company. Besides, the shipment we delivered is 

only the sample the quantity of which is 25 kg. For our lack of experiences, firstly we 

believe that Alfa Aesar's certification is reliable and the above-described shipment 

for entry is not in violation of any applicable rule or order in US. Secondly, since Fed 

Ex didn't put forward any objections for packaging when we described the name of 

the substance, we understand that the packaging for the above-described shipment 

satisfy the US requirements. 

(3) We feel sorry to the bad effect caused by the leakage to the environment. 

We believe it is an accident. Actually, FAA's penalty intends to draw our attention to 

the regulations relating to entry formalities in US. We have realized our negligence 

during this transportation and promise that we will rigorously observe the rules and 

regulations of US. 
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(4) In addition, the sample we delivered just cost $ 1100 .With such a small 

amount, the FAA's civil penalty in the amount of $ 42,000 is too high. 

Based on the foregoing, we requests that the Administrative Law Judge could 

order the FAA to remit the fine. If FAA has to impose fines on us, we require the FAA 

to reduce the amount pf^the penalty. 

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Hallochem PRarma Co,,Ltit." j 

President'•' 'As 

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Hallochem PharmaCo.,Ltd. 

17F,Venus Science Incubate Center 

No.eOXingguang Road, New North Zone 

Chongqing,China 401121 

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