TTB Accepts Offer in Compromise
We have accepted an offer in compromise (OIC) in the amount of $450,000.00 from MHW, Ltd. (MHW) for allegedly violating the Federal Alcohol Administration Act’s trade practices provisions by contracting to purchase, and/or purchasing, products on consignment from multiple entities. Specifically, TTB alleges that MWH entered into agreements with TTB-permitted industry members ("Suppliers") wherein MHW was under no obligation to pay for distilled spirits or wine until it sold these products and received payment. Additionally, MHW assumed title to a product, prior to paying for that product, and Suppliers could not access or sell products held by MHW without its approval. Under the terms of the arrangement, and in actual practice, MHW was not required to pay Suppliers if it was unable to collect funds from its buyers.
As a condition of TTB’s acceptance of the OIC, MHW agreed to implement corrective actions including: (1) Modifying its Supplier agreements to eliminate the practice of assigning receivables to its Suppliers; (2) Paying its Suppliers on fixed terms, regardless of when or if payment is received from its buyers; and (3) Agreeing that Suppliers who enter into an agreement with MHW will have access to their products stored under MHW's supervision prior to purchase by MHW.
TTB resolved a similar consignment sales investigation of Park Street Imports, LLC for $350,000.00 in 2023. See Park Street Imports, LLC for additional details.
USDA: National Organic Standards Board: Call for Nominations
 TTB-regulated industries may find this notice of interest.
SOURCE: Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024
AGENCY: Agricultural Marketing Service, USDA
ACTION: Notice; call for nominations
SUMMARY: The National Organic Standards Board (NOSB) was established to assist in the development of standards for substances to be used in organic production and to advise the Secretary on the implementation of the Organic Foods Production Act of 1990 (OFPA). Through this Notice, the U.S. Department of Agriculture (USDA) is announcing its call for nominations to fill five vacancies on the NOSB. The positions are listed below under SUPPLEMENTARY INFORMATION. Appointees will serve a 5-year term likely beginning January 23, 2025, and ending January 23, 2030. Additionally, USDA seeks nominations for a pool of candidates that the Secretary of Agriculture can draw upon as replacement appointees if unexpected vacancies occur.
DATES: Application packages must be received by mail or postmarked on or before June 28, 2024.
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