Senior executives at two vehicle and engine importers in California will pay a $50,000 penalty because the products sold were in violation of Clean Air Act regulations. The defendants, Yuan Cheng International Group, Inc. (YCIG) and NST, Inc. (NST), located in Montclair, California, allegedly imported and sold vehicles and engines from China that had excessive levels of emissions.
The settlement requires the companies and Mr. John Cheng and Ms. Jenny Yu, senior company executives, to pay a combined civil penalty of $50,000. In a statement, the Department of Justice said the amount is based on the United States’ determination that they can’t pay a higher civil penalty. Both companies have ceased importing vehicles and engines, and are now dissolved. In the fall of 2010, NST agreed to pay $250,000 to the State of California to resolve similar violations concerning the illegal sale of uncertified vehicles.
The latest settlement resolves allegations that between 2006 and 2011 the companies imported and sold 17,521 recreational vehicles, highway motorcycles, and non-road spark ignition engines without proper EPA certification.
The Clean Air Act prohibits any vehicle or engine from being imported and sold in the United States unless it is covered by an EPA-issued “certificate of conformity” saying that the vehicle or engine meets applicable federal emission standards.
“Today’s settlement demonstrates EPA’s commitment to ensuring that imports comply with requirements that protect our nation’s air quality, while leveling the playing field for businesses that comply with the law,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance.
In addition, Cheng and Yu must enter into a compliance plan with EPA before any future importation, distribution or selling of any products covered by the Clean Air Act. They must also provide EPA with notice before forming any U.S. business that is intended to do so.
John Cheng (also known as Yuan Cheng) was the sole shareholder, director, president, secretary, chief financial officer, and treasurer of the YCIG. NST was the corporate successor to YCIG after YCIG dissolved. Cheng’s wife, Jenny Yu, was the president, secretary, chief financial officer, one of two directors, and a 50% shareholder of NST. Mr. Cheng held the other 50%.
