EPA Announces Import Settlement

Posted on November 14, 2012

The U.S. Environmental Protection Agency (EPA) and the Dept. of Justice have announced a settlement with two former importers of highway motorcycles, recreational vehicles and small spark-ignition engines.

Yuan Cheng International Group, Inc. (YCIG) and NST, Inc. (NST), located in Montclair, Calif., allegedly imported and sold vehicles and engines from China in violation of Clean Air Act requirements. The settlement resolves allegations that, between 2006 and 2011, the companies imported and introduced into commerce 17,521 recreational vehicles, highway motorcycles and nonroad spark ignition engines without proper EPA certifications required under the Clean Air Act.

The settlement requires the companies and John Cheng and Jenny Yu, senior company executives, to pay a combined civil penalty of $50,000. Cheng (also known as Yuan Cheng) was the sole shareholder, director, president, secretary, chief financial officer and treasurer of YCIG. NST was the corporate successor to YCIG after YCIG dissolved. Yu, Cheng’s wife, was the president, secretary, chief financial officer, one of two directors and a 50% shareholder of NST. Cheng was the other shareholder.

The settlement is based on the determination that the parties have a limited ability to pay a civil penalty in this matter. 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. In addition, Cheng and Yu must enter into a compliance plan with EPA prior to any future importation, distribution, selling or offering for sale of any products covered by the Clean Air Act.