Business Alert – US

The Environmental Protection Agency announced 11 January that three mainland Chinese companies have agreed to pay a civil penalty of US$680,000 to resolve violations of the Clean Air Act related to the importation of 7,115 uncertified recreational vehicles into the United States. The EPA argued that two of these three companies held certificates of conformity that were voided by the agency following an investigation of a California-based certification services consulting firm that allegedly used false or incomplete information to certify vehicles under the CAA for four of its clients. These certificates allowed the importation and sale of more than 24,000 recreational vehicles in the U.S. that did not meet CAA standards, more than 7,000 of which were manufactured by a Chongqing City-based manufacturer.

The CAA prohibits any vehicle or engine from being imported and sold in the U.S. unless it is covered by a valid EPA-issued certificate of conformity indicating that the vehicle or engine meets applicable federal emission standards. The certificate of conformity is the primary way the EPA ensures that imported vehicles and engines meet applicable emission standards. This enforcement action is part of an on-going effort to ensure that all imported vehicles and equipment comply with CAA requirements. The EPA notes that uncertified engines can emit excess carbon monoxide and nitrogen oxides and cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone.