Chao Ran Chu, Dba Chao Ran Trading Company v. Bureau of Alcohol, Tobacco & Firearms

The issue in this case is whether under the Federal Alcohol Administration Act, 27 U.S.C. §§ 201-211 (Supp.1987), (“FAA Act”), the suspension of Chao Ran Chu’s (“Chu”) wholesaler & importer permits is tantamount to a revocation in violation of the FAA Act’s proscription against revoking permits for first time violations. See 27 U.S.C. § 204 (e). The Director of the Bureau of Alcohol, Tobacco & Firearms affirmed an administrative law judge’s (“AU”) finding that Chu willfully violated the conditions of his permits by failing to comply with the Internal Revenue Code, 26 U.S.C. Chapter 51, and the FAA Act. However, the Director modified the suspension period for the permits ordered by the ALJ, of a time to be specified by the Regional Director, not to exceed three years. The Director ordered the time of suspension to be 45 days and thereafter until Chu extinguished his tax liability. This appeal follows.

The FAA Act gives the Director broad discretion in suspending permits for willful violations of the conditions of the permits. 27 U.S.C. § 204 (e). His broad discretion extends to determining the appropriateness of the sanctions as well as determining the duration of the suspension.…