EPA v. NST f/k/a Yuan Cheng

Case summary

This case involves violations of the Clean Air Act ( CAA ) by two California corporations that have since been disolved. Yuan Cheng International Group, Inc. (“YCIG”) was an importer of highway motorcycles and all terrain vehicles (ATV's). NST, Inc. ( NST ) was incorporated in 2006, following YCIG’s cessation of business and it acquired the motorcycle and power sport aspect of YCIG's business. NST and YCIG were major importers. Based on importation records, in 2010 NST was the seventh largest importer of Chinese-made motorcycles imported into the United States, and in 2007, YCIG was the fifth largest importer of Chinese-made motorcycles, and the eleventh largest importer of Chinese-made recreational vehicles imported into the United States. YCIG and NST together imported over 17,500 recreational vehicles and highway motorcycles without proper EPA certifications or without proper emissions labels. In addition, the companies failed to adequately respond to EPA's requests for information under the CAA. Although not named personally in the complaint, the owners of YCIG and NST have agreed to be individually bound by the settlement and be personally jointly and severally liable for all of the terms of the consent decree. This individual liability was a significant point for EPA as many illegal importation enforcement cases involve companies operated by one or a few individuals who simply close down one business and continue operations under a new name or corporate entity, a pattern that was present in this case. In this case, both NST and YCIG ceased importing and are now dissolved. The settlement includes a certification by NST and YCIG, and John Cheng and Jenny Yu in their individual capacities, that they will not import, distribute, sell, offer for sale, or cause any such acts, as to products covered by Title II of the Act. Mr. Cheng and Ms. 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. They must also provide EPA with notice prior to forming any U.S. business entity that engages in the importation, distribution, selling or offering for sale of any products covered by the Clean Air Act, or before individually engaging in such activities. These compliance requirements are in effect for a period of at least 10 years. ATVs, motorcycles and small gasoline engines emit carbon monoxide and particulate matter, as well as volatile organic compounds and nitrogen oxides that contribute to the formation of ground-level ozone. NST and YCIG must pay a civil penalty in the amount of $50,000. This amount was reduced substantially in light of the companies’ current financial condition and limited ability to pay.

Defendants (2)

• NST INC., D/B/A NEW STAR TECHNOLOGY INC.Named in complaintNamed in settlement
• YUAN CHENG INTERNATIONAL GROUP, INC.Named in complaintNamed in settlement

Facilities (1)

• YUAN CHENG

  10830 ADA AVENUE, MONTCLAIR, CA, 91763

  Registry ID: 110037242061

Statutes cited

• CAA 213 — Non-road Engines & Vehicles

Enforcement conclusions (1)

• NST f/k/a Yuan Chengentered 2013-01-15

  Primary law: CAA

  Federal penalty: $50,000

Timeline (7 milestones)

• 2011-06-14Referred To Dept Of Justice
• 2011-07-15Enforcement Action Data Entered
• 2012-11-13Complaint Filed With Court
• 2012-11-13Final Order Lodged
• 2013-01-15Final Order Entered
• 2023-03-08Concluded
• 2023-03-08Enforcement Action Closed