EPA v. Jonway Motorcycle USA

Case summary

This case addresses alleged violations of the Clean Air Act (CAA) by two Texas companies -- Jonway Motorcycle (USA) Co., Ltd., and Shenke USA, Inc.-- and four Chinese manufacturers. The violations stem from the illegal importation and sale of more than 11,000 motorcycles and all-terrain vehicles that did not conform to the specifications that the companies had certified to EPA. On November 14, 2014, EPA?s Environmental Appeals Board (EAB) granted a motion by EPA?s Air Enforcement Division for default judgement against all respondents for all claims in an enforcement case against companies operating under the brand names ?Jonway? and ?Shenke?. The Chinese manufacturers include Jonway Group Co., Ltd., Shanghai Shenke Motorcycle Co., Ltd., Zhejiang JMStar Shenke Motorcycle Co., Ltd., and Zhejiang Jonway Motorcycle Manufacturing Co., Ltd. Evidence of certification, warranty, and labeling violations was obtained through inspections of imported vehicles at the Los Angeles/Long Beach Seaport and Nitro PowerSports, LLC in Carrollton, Texas. In short, this matter regards the importation and sale of approximately 11,043 highway motorcycles and 226 recreational vehicles that were not covered by an EPA certificate of conformity, primarily because they had undersized catalysts, adjustable carburetors that were not described in the corresponding application for certification, were manufactured by a manufacturer different from the one specified in the corresponding application for certification, or were manufactured after the applicable certificate expired. Respondents also imported and sold recreational vehicles without compliant warranties and labels. Last but not least, Jonway?s and Shenke?s response to a request for information under section 208 of the Act, 42 U.S.C. ? 7542, was unjustifiably delayed and yielded evidence of violations of recordkeeping requirements of the Clean Air Act related to emission testing and certification. Highway motorcycles and recreational vehicles emit carbon monoxide, as well as hydrocarbons and nitrogen oxides that contribute to the formation of ground-level ozone. Nitrogen oxides can cause or contribute to a variety of health problems and adverse environmental impacts, such as ground-level ozone, acid rain, water quality deterioration, and visual impairment. Affected populations include children and people with lung diseases such as asthma. Exposure to these conditions can cause damage to lung tissue for people who work or exercise outside. Ground-level ozone is formed by reactions involving HC and NOx in the presence of sunlight. Breathing ozone can trigger a variety of health problems, including chest pain, coughing, throat irritation, and congestion. It also can worsen bronchitis, emphysema, and asthma. Ground-level ozone damages vegetation and ecosystems as well. In the United States, ozone is responsible for an estimated $500 million in reduced crop production each year. Carbon monoxide is a colorless, odorless gas that is formed when carbon in fuel is not burned completely. It is a component of motor vehicle exhaust, which contributes about 56 percent of all carbon monoxide emissions nationwide. Carbon monoxide can cause harmful health effects by reducing oxygen delivery to the body's organs (like the heart and brain) and tissues. The EAB granted the requested relief of a civil penalty of $1,258,582.The Environmental Appeals Board?s default order and final decision in the case is available at http://yosemite.epa.gov/oa/EAB_Web_Docket.nsf/4192ecc36740334585256fc500721f72/af693f1241c52c4e85257d900059758b!OpenDocument. For more information on this case, visit http://www2.epa.gov/enforcement/jonway-and-shenke-default-order-and-final-decision.

Defendants (1)

• Jonway Motorcycle USANamed in complaintNamed in settlement

Facilities (1)

• JONWAY MOTORCYCLE USA

  2717 EAST BELTLINE ROAD SUITE 100, CARROLLTON, TX, 75006

  Registry ID: 110058919390

Statutes cited

• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines
• CAA 208 — Information Collection from Motor Vehicle Mfg.
• CAA 213 — Non-road Engines & Vehicles

Enforcement conclusions (1)

• Jonway Motorcycle USAentered 2014-12-15

  Primary law: CAA

  Federal penalty: $1,258,582

Timeline (3 milestones)

• 2013-11-20Complaint Filed/Proposed Order
• 2014-03-14Enforcement Action Data Entered
• 2014-12-15Final Order Issued