Vehicle Importer Settles Clean Air Act Violations; Posts Bond to Cover Future Fines
A California importer will pay $630,000 to settle charges that it violated the Clean Air Act on vehicles and engines it imported from China, said the Environmental Protection Agency on March 27. EPA says American Lifan Industry imported over 6,700 motorcycles, all-terrain vehicles, and engines made by Lifan in China without testing for emissions or getting certifications required by the Clean Air Act. In addition to the fines, American Lifan will also have to post a $300,000 - $500,000 bond to cover any fines related to future violations. EPA says this is the first time it has ever imposed a bond requirement in a settlement.
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According to EPA, American Lipan sold over 6,700 vehicles and engines without the required certification that emissions meet federal standards. The company also obtained certificates of conformity for numerous vehicles without testing emissions, failed to provide purchasers with the full emissions warranty required by the Clean Air Act, imported and sold vehicles without proper emission labels, and failed to follow recordkeeping requirements, said EPA. EPA and CBP discovered the violations through joint inspections at the ports of Dallas/Fort Worth and Los Angeles/Long Beach, said EPA, as well as through a “comprehensive document review” provided by American Lipan.
Under the settlement, American Lipan will pay $630,000 in civil penalties and will also post a $300,000-$500,000 bond to satisfy any future potential penalties related to importation of model year 2014, 2015, and 2016 vehicles manufactured by China Lifan Industry (Group) Co., Ltd or affiliated companies, said EPA.