United States v. Food, 2,998 Cases, Etc., First Phoenix Group, Ltd., Claimant-AppelleeUnited States v. Food, 2,998 Cases, Etc., First Phoenix Group, Ltd., Claimant-Appellee
This appeal presents complex, difficult, and close questions. It is, however, a case that is unlikely to arouse widespread passion.
The case begins with an import alert for mushrooms canned in China and falsely bearing the labels of certain Taiwanese manufacturers. Based on the alert, the Food and Drug Administration (the “FDA”) detained two shipments of mushrooms owned by ap-pellee First Phoenix Group Limited, Inc. (“First Phoenix”). The question that drives this appeal is what is to be done with these mushrooms now that they have been detained by the Customs Service at the port of entry; First Phoenix argues that it is entitled to “reexport”
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them, and the FDA аrgues that it has the authority to destroy them. The FDA filed a complaint in the United States District Court for the Eastern District of Louisiana, asserting authority to destroy the mushrooms under
We conclude, given the broad statutory definition of interstate commerce, that the mushrooms were in interstate commerce and that neither the plain words of the statute nor congressional intent behind the statute bars FDA’s proceeding under
I
In October 1989, the Food and Drug Administration (the “FDA”) issued an “import alert” 2 for all canned mushrooms processed in China in response to a food-borne illness caused by staphylococcal enterotoxin found in canned mushrooms produced in nine China factories. Appellee First Phoenix Group Limited, Inc. (“First Phoenix”), an importer of food products, purchased several orders of canned mushrooms supposedly packaged at Hwa Chen Industrial Corporation (“Hwa Chen”) in Taiwan. In late spring 1992, First Phoenix attempted to enter two shipments of mushrooms — 3,000 eases and 6,000 cases— into the United States. The 3,000-case shipment was unloaded at Savannah, Georgia, transported under a United States Customs Service transit bond to a bonded warehouse in Tampa, Florida, and offered for entry on May 26, 1992. The United States Customs Service (the “Customs Service”) conditionally released these mushrooms under bond pending review by the FDA. The mushrooms then were shipped to a bonded warehouse in New Orleans, Louisiana, the destination city for each shipment, and have remained in this warehouse since this time. The 6,000-case shipment was unloaded at Long Beach, California, in early July 1992, transported under a Customs Service transit bond to a bonded warehouse in New Orleans, and offered for entry on behalf of First Phoenix by Transoceanic Shipрing.
On July 10,1992, the FDA issued a second import alert advising its field offices to detain shipments of canned mushrooms from specified Taiwanese manufactures, including Hwa Chen. The FDA issued this import alert because mushrooms labelled as packaged and produced from these specified manufacturers actually were processed and packaged in an unknown factory in China. Because of this import alert, the FDA issued Notices of Detention and Hearing for the 3,000-case shipment on July 29, and for the 6,000-case shipment on December 14.
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In these notices, the FDA indicated that it was acting under
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its power in
Accordingly, on November 3, 1993, the government filed a complaint in the United States District Court for the Eastern District of Louisiana seeking seizure and condemnation of both shipments of mushrooms as adulterated and misbranded goods in interstate commerce under its authority in
On appeal, the government argues that because the mushroom shipments fall within the statutory definition of “interstate commerce,” it had the authority to bring a
II
In this appeal, we must consider whether the district court erred in granting summary judgment in favor of First Phoenix and dismissing the government’s complaint on the grounds that the facts here failed to demonstrate a claim under
Ill
A
We first examine whether the mushrooms in this ease were introduced into “interstate commerce,” as required to initiate a seizure and сondemnation action under
Any article of food, drug, or cosmetic that is adulterated or misbranded when introduced into or while in interstate commerce or while held for sale ... after shipment in interstate commerce ... shall be liable to be proceeded against while in interstate commerce, or at any time thereafter, on liable of information and condemned in any district court of the United States ... within the jurisdiction in which the article is found.
The question remaining is whether these goods, which were never released for sale in the United States from the Customs Service, were also in “commerce,” as required by
Having determined that the mushrooms had been introduced into interstate commerce, it is plain on the face of the statute that
B
(1)
As earlier discussed,
The Secretary of the Treasury shall deliver to the Secretary of Health ... samples of food, drugs, and cosmetics which are being imported or offered for import into the United States ... [and] if it appears from the examination of such samples ... that ... such article is adulterated, [or] mis-branded such article shall be refused admission, except as provided in subsection (b) of this section. The Secretary of the Treasury shall cause the destruction of any article refused admission unless such article is exported, under regulations prescribed by the Secretary of the Treasury, within ninety days of the date of notice of such refusal or within such additional time as may be permitted pursuant to such regulations.
Clearly no provision of
(2)
When Congress enacted the FDCA in 1938, it intended to strengthen the provisions of its predecessor act — the Federal Food and Drugs Act of 1906 (the “1906 Act”).
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H.R.Rep. No. 2139, 75th Cong., 3d Sess. (1938),
reprinted, in
FedeRál Food, Dsug, AND COSMETIC ACT: A STATEMENT OF ITS Legislative RECORD 816 (Charles Wesley Dunn ed., 1987) (hereinafter Legislative RECORD). Without substantial change, Congress modeled
First Phoenix primarily relies on the two substantial post-1938 amendments to
Next, in 1957, Congress amended
In short, First Phoenix concedes that Congress intended to strengthen the United States’ food and drug laws when it enacted the FDCA, but argues that nothing in the legislative history or statutory scheme indicates that Congress intended to extend the FDA’s power under
(3)
We can appreciate the arguments of First Phoenix as pointing to how the statues logically and practically operate. It certainly appears true that Congress assumed that
The legislative history, however, also makes clear that Congress intended to empower the FDA with the broadest possible authority over imported contaminated goods. The plain words of the statute expansively define “interstate commerce” to effectively include foreign commerce. Moreover, no statutory language prohibits the application of
We therefore hold that the plain language of
REVERSED and REMANDED.
Notes
.This inside term is somewhat misleading. When imported goods have been refused admission into the United States, "reexport" is a convenient term describing the opportunity given to the importer to send these goods out of the United States.
. An import alert advises FDA field offices of ongoing problems with a specific product offered for import and suggests appropriate action, such as detention for inspection and sampling.
. Between July 29 and December 14, First Phoenix located a purchaser in Russia for the mushrooms.
. The FDA sampled the mushrooms from the 3,000-can shipment, but found no adulteration of the mushrooms.
. Because this is a case on appeal from the district court's grant of summary judgment, we review the record
de novo. Calpetco 1981 v. Marshall Exploration, Inc.,
The government argues that the FDA’s interpretation of the statutes at issue in this case should be given “controlling wеight.”
See Chevron, U.S.A., Inc. v. Natural Resources Defense Council. Inc.,
. We have found very few cases interpreting this provision and none within our circuit. In
Roseman v. United States,
. When these goods left Taiwan, they were destined for New Orleans and were unloaded in Georgia and California because overland transportation was morе convenient and inexpensive than direct shipment to New Orleans, Louisiana.
. A Customs Service bond includes any bond required under Customs laws or regulations in order to perform a particular Customs activity.
. The FDA has not issued a formal notice of refusal of admission of these mushrooms.
. We point out that
. First Phoenix argues that the express language of
We acknowledge that this plain language projects a forceful argument that importers have an unequivocal right to a notice of refusal of admission. And it is true that if the FDA proceeds under
. The Supreme Court noted:
By the Act of 1938, Congress extended the range of its control over illicit and noxious articles and stiffened the penalties for disobedience. The purposes of this legislation thus touch phases of the lives and health of people which, in the circumstances of modern industrialism, are largely beyond self-protection. Regard for these purposes should infuse construction of the legislation if it is to be treated as a working instrument of government and not merely as a collection of English words. United States v. Dotterweich,320 U.S. 277 , 280,64 S.Ct. 134 , 136,88 L.Ed. 48 (1943) (internal citations omitted).
. With the exception of the two amendments discussed later in this opinion, the 1938 versions of
. The seizure and condemnation provision contained in § 10 of the 1906 Act provided in relevant part:
any article of food ... that is adulterated or misbranded within the meaning of this act, and is being transported from one State, Territory, District, or insular possession to another for sale, or, having been transported, remains unloaded, unsold, or in original unbroken packages, or if it be sold or offered for sale in the District of Columbia or the Territories, or insular possessions of the United States, or if it be imported from a foreign country for sale, or if it is intended for export to a foreign country, shall be liable to be proceeded against, ... and seized for confiscation by a process of libel for condemnation.
Food and Drugs Act of 1906, § 10,
reprinted in
Legislative Record at 832 (emphasis added). This entire enumeration of instances when goods could be seized and сondemned was replaced in
. The import-export provision contained in § 11 of the 1906 Act provided in relevant part:
The Secretary of the Treasury shall deliver to the Secretary of Agriculture ... samples of foods and drugs which are being imported into the United States or offered for import ... and if it appear from the examinаtion of such samples that any article of food or drug offered to be imported into the United States is adulterated or misbranded within the meaning of this act ... the said article shall be refused admission, and the Secretary of the Treasury shall ... cause the destruction of any goods refused *991 delivery which shall not be exported by the consignee within three months from the date of notice of such refusal.
Food and Drugs Act of 1906, § 11,
reprinted in
Legislative Record at 832-33. This provision remained substantially unchanged when enacted as
. First Phoenix recognizes that Congress intended no substantial change from the 1906 Act with respect to the administrative and judicial proceedings of the FDCA. First Phoenix contends, however, that the provisions were always intended to be mutually exclusive remedies for the FDA when dealing with adulterated or mis-branded goods. First Phoenix argues that § 11 of the 1906 Act provided the government's exclusive authority with respect to goods detained at the port of entry and allowed the government only to refuse entry of these goods into the United States. First Phoenix contends that this limited power of exclusion for goods detained at the port of entry continued in