TTB Press Release

For Immediate Release
Contact: Art Resnick (202) 927-8062

August 13, 2003



Washington, D.C. - The Alcohol and Tobacco Tax and Trade Bureau (TTB) announced that the Importers Basic Permit issued to Nan Yang Trading Company (Nan Yang) located in Palo Alto, California, has been suspended for 21 days commencing August 8, 2003. Nan Yang admitted to 22 disclosed violations and agreed to the suspension of its permit.

Nan Yang is engaged in the business of importing wine and distilled spirits under an Importers Basic Permit issued pursuant to the Federal Alcohol Administration Act (FAA). As part of the Suspension Agreement, NanYang admitted to willfully violating provisions of the FAA by incorrectly labeling thousands of cases of alcohol beverages.

The labeling violations included using prohibited therapeutic health claims, failing to include sulfite declarations on wine labels, use of incorrect alcohol statements relevant to content and fill, and the use of labels other than those for which a Certificate of Label Approval had been issued.

The suspension of Nan Yang's Basic Permit represents TTB's commitment to take appropriate action against regulated industry members engaged in activities that deceive the consumer by the use of mislabeled products.