Costco's Appeal Over Hepatitis-A Berry Case Rejected Due to Delay; Taichung City: Disciplined Negligent Staff

TAICHUNG, June 18 (Central News Agency reporters Su Mu-chun and Hao Hsueh-ching) — Taichung City Government's NT$2 million fine against Costco for a hepatitis-A contaminated berry incident was rejected on appeal due to missing the deadline. Taichung City Health Bureau Director Tseng Tzu-chan stated today that personnel involved in administrative negligence have been disciplined, and he has personally apologized and submitted a self-punishment proposal.

According to the Taichung High Administrative Court ruling, the case originated when Costco's headquarters imported 'Kirkland Signature Frozen Mixed Berries' on March 27, 2023. The Taiwan Food and Drug Administration conducted border inspections and detected the hepatitis A virus on April 10, 2023.

On April 11, 2023, Costco headquarters notified its Taichung and North Taichung branches to immediately remove the product from shelves and complete and return the 'Cloud Batch Investigation Form' and 'Product Removal Completion Form' by April 12.

However, upon receiving the notice, the Taichung and North Taichung branches failed to immediately report the incident to the Taichung City Health Bureau as required by the Food Safety and Sanitation Management Act. Costco headquarters only filed the official notification on April 26, attaching a nationwide inventory report, and began notifying members to recall the product.

The Taichung City Health Bureau determined that both branches had identified a product posing a health risk but failed to report it proactively, violating food safety regulations. As a result, each branch was fined NT$1 million. Dissatisfied, both branches filed appeals, which were rejected by the Taichung City Government, leading to an administrative lawsuit.

The Taichung High Administrative Court ruled that the city's dual penalties on the two branches violated the principle of 'no double punishment for the same act.' The court also noted that the city should have applied the Taichung City Food Safety and Sanitation Management Autonomous Ordinance instead of relying solely on central regulations. On April 2, 2024, the court overturned both the original penalty and the appeal decision. Since the city failed to appeal within the legal timeframe, the ruling became final.

Director Tseng, speaking at a press conference today, expressed anger over the administrative oversight that caused the missed appeal deadline. He confirmed that responsible staff have been disciplined, and he has submitted a self-disciplinary measure to Mayor Lu Hsiu-yen, along with a public apology.

Tseng explained that while the judge acknowledged the company should be penalized, double punishment was inappropriate. He emphasized that the local autonomous ordinance should have been applied, though its maximum penalty is only NT$100,000. The city will now consult with the Legal Affairs Department to explore alternative legal avenues for reissuing penalties. (Edited by Chang Ya-ching) 1150618