Leading North American US duty free wholesaler and retailer Fairn & Swanson has launched a legal action against the Alcohol and Tobacco Tax and Trade Bureau.

 

In its law suit filed with the District of Columbia, Fairn & Swanson alleges that the federal agency unlawfully terminated its permit for a TTB export warehouse, due to what it claimed were unreported changes to the company’s controlling stockholders — including a stock transfer that took place 16 years ago.

 

The Oakland, California-based company filed its complaint in the District of Colombia and has rejected TTB’s allegations, arguing that the unreported placement of company stock into a revocable trust with a stockholder’s family member is not a change as asserted.

 

Fairn & Swanson also applied for a temporary restraining order on January 13 to prevent TTB from revoking Fairn’s export warehouse proprietor’s permit for Export Warehouse EW-WA-39 in Seattle, Washington.

 

 

This restraining order is also aimed at preventing TTB from seizing any of Fairn & Swanson’s inventory, or taking any action inconsistent with F&S having a current valid export warehouse proprietor’s permit for Export Warehouse EW-WA-39.

 

The thrust of Fairn & Swanson’s main request to the court is that it issues an order that sets aside TTB’s decision to revoke its export warehouse proprietor’s permit on the basis that it is contrary to US law. The case continues.

 

[For reference purposes the case number is 1:15-cv-00047-RJLin the District of Columbia and the judge is Richard J Leon].

 

Besides its extensive import, distribution and warehouse business based in Oakland, California (since 1949), the company is also well known for operating the 10-strong Baja Duty Free chain along the US/Mexico border.

 

In California it currently operates stores in Calexico, Otay, San Ysidro (3 stores), and Tecate. In Texas its four shops are located in Brownsville, Eagle Pass, El Paso and Laredo.