Document ID: FDA-2011-N-0183-0001
Agency: fda
Document Type: Notice
Title: Debarment Orders: Hung Ta Fan
Posted Date: 2011-08-16T04:00Z

[Federal Register Volume 76, Number 158 (Tuesday, August 16, 2011)]
[Notices]
[Pages 50739-50740]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20780]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2011-N-0183]

Hung Ta Fan: Debarment Order

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is issuing an order 
under the Federal Food, Drug, and Cosmetic Act (the FD&C Act) debarring 
Hung Ta Fan for a period of 5 years from importing articles of food or 
offering such articles for importation into the United States. FDA 
bases this order on a finding that Mr. Fan was convicted of a felony 
under Federal law for conduct relating to the importation into the 
United States of an article of food. Mr. Fan was given notice of the 
proposed debarment and an opportunity to request a hearing within the 
timeframe prescribed by regulation. As of July 13, 2011 (30 days after 
receipt of the notice), Mr. Fan had not responded. Mr. Fan's failure to 
respond constitutes a waiver of his right to a hearing concerning this 
action.

DATES: This order is effective August 16, 2011.

ADDRESSES: Submit applications for termination of debarment to the 
Division of Dockets Management (HFA-305), Food and Drug Administration, 
5630 Fishers Lane, rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Kenny Shade, Office of Regulatory 
Affairs (HFC-230), Food and Drug Administration, 5600 Fishers Lane, 
Rockville, MD 20857, 301-796-4640.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 306(b)(1)(C) of the FD&C Act (21 U.S.C. 335a(b)(1)(C)) 
permits FDA to debar an individual from importing an article of food or 
offering such an article for import into the United States if FDA 
finds, as required by section 306(b)(3)(A) of the FD&C Act, that the 
individual has been convicted of a felony for conduct relating to the 
importation into the United States of any food.
    On August 4, 2010, the United States District Court for the 
Northern District of Illinois accepted Mr. Fan's guilty plea and 
entered judgment against him for the offense of conspiracy, in 
violation of 18 U.S.C. 371 and 2, for conspiring to defraud the United 
States and to violate 18 U.S.C. 542 (entry of Goods into the United 
States by means of false statements) and 18 U.S.C. 545 (importation 
contrary to law).
    FDA's finding that debarment is appropriate is based on the felony 
conviction referenced herein for conduct relating to the importation 
into the United States of any food. The factual basis for this 
conviction is as follows: In or around March 2005 and continuing until 
in or around November 2006, in violation of 18 U.S.C. 371 and 2, Mr. 
Fan agreed and conspired with others to defraud the United States and

[[Page 50740]]

to commit offenses against the United States, to wit: Entry of Goods 
into the United States by means of False statements in violation of 18 
U.S.C. 542 and Smuggled Goods into the United States in violation of 18 
U.S.C. 545. Specifically, Mr. Fan owned and operated Blue Action 
Enterprise, Inc., 7 Tiger Enterprise, Inc., Honey World Enterprise, 
Inc., Kazak Food Corp., and Kashaka USA, Inc., through which he 
imported honey into the United States. Mr. Fan conspired to cause these 
companies to import, enter, and sell Chinese-origin honey into the 
United States and avoid payment of antidumping duties by falsely 
declaring to the U.S. Department of Homeland Security, Bureau of 
Customs and Border Protection that the imported honey originated from 
countries other than China, including India, South Korea, Taiwan, and 
Thailand, when in fact he knew that the honey originated in China. Mr. 
Fan's actions allowed him to avoid paying approximately $5,378,370 in 
antidumping duties to the United States.
    Further, in or around January 2009, in violation of 18 U.S.C. 371 
and 2, Mr. Fan agreed and conspired with others to enter into the 
commerce of the United States honey diluted and blended with 
approximately 20 to 30 percent artificial sugar, by means of false and 
fraudulent declarations and practices in violation of 18 U.S.C. 542, 
for the purpose of increasing his profits.
    As a result of his conviction, on June 8, 2011, FDA sent Mr. Fan a 
notice by certified mail proposing to debar him for a period of 5 years 
from importing articles of food or offering such articles for import 
into the United States. The proposal was based on a finding under 
section 306(b)(1)(C) of the FD&C Act that Mr. Fan was convicted of a 
felony under Federal law for conduct relating to the importation into 
the United States of an article of food because he conspired to commit 
offenses related to the importation of Chinese honey into the United 
States, and a determination, after consideration of the factors set 
forth in section 306(c)(3) of the FD&C Act that Mr. Fan should be 
subject to the maximum possible period of debarment. The proposal also 
offered Mr. Fan an opportunity to request a hearing, providing him 30 
days from the date of receipt of the letter in which to file the 
request, and advised him that failure to request a hearing constituted 
a waiver of the opportunity for a hearing and of any contentions 
concerning this action. Mr. Fan failed to respond within the timeframe 
prescribed by regulation and has, therefore, waived his opportunity for 
a hearing and waived any contentions concerning his debarment (21 CFR 
part 12).

II. Findings and Order

    Therefore, the Director, Office of Enforcement, Office of 
Regulatory Affairs, under section 306(b)(1)(C) of the FD&C Act, and 
under authority delegated to the Director (Staff Manual Guide 1410.35), 
finds that Mr. Hung Ta Fan has been convicted of a felony under Federal 
law for conduct relating to the importation of an article of food into 
the United States and that he is subject to the full period of 
debarment.
    As a result of the foregoing finding, Mr. Fan is debarred for a 
period of 5 years from importing articles of food or offering such 
articles for import into the United States, effective (see DATES). 
Under section 301(cc) of the FD&C Act (21 U.S.C. 331(cc)), the 
importing or offering for import into the United States of an article 
of food by, with the assistance of, or at the direction of Mr. Fan is a 
prohibited act.
    Any application by Mr. Fan for termination of debarment under 
section 306(d)(1) of the FD&C Act should be identified with Docket No. 
FDA-2011-N-0183 and sent to the Division of Dockets Management (see 
ADDRESSES). All such submissions are to be filed in four copies. The 
public availability of information in these submissions is governed by 
21 CFR 10.20(j).
    Publicly available submissions may be seen in the Division of 
Dockets Management between 9 a.m. and 4 p.m., Monday through Friday.

    Dated: August 8, 2011.
Armando Zamora,
Acting Director, Office of Enforcement, Office of Regulatory Affairs.
[FR Doc. 2011-20780 Filed 8-15-11; 8:45 am]
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