EPA v. American Lifan Industry

Case summary

This case addresses alleged violations of the Clean Air Act (CAA) by American Lifan Industry, Inc. (American Lifan), an Ontario, California-based vehicle and engine importer. American Lifan has agreed to ensure that future imports meet environmental standards after illegally importing and selling nearly 28,000 highway motorcycles, recreational vehicles, and engines manufactured in China that did not comply with emission limits for harmful pollution required by the Clean Air Act (CAA). The settlement requires American Lifan to pay $630,000 in civil penalties to the United States Treasury. The company has also agreed to post a $300,000-$500,000 bond to satisfy any future CAA penalty related to importation of model year 2014, 2015, and 2016 vehicles manufactured by China Lifan Industry (Group) Co., Ltd or affiliated companies. This is the first instance that the EPA secured such a bond in a CAA settlement. The settlement, just approved by EPA’s Environmental Appeals Board, alleges that the company violated the CAA by importing and selling over 6,700 highway motorcycles, recreational vehicles, and engines that lack the required certification indicating that emissions meet federal standards. The EPA also alleges that the company failed to provide purchasers with the full emissions warranty required by the CAA; imported and sold vehicles without proper emission labels; and failed to follow recordkeeping requirements. The EPA and U.S. Department of Homeland Security’s Bureau of Customs and Border Protection discovered the violations through inspections conducted at the Dallas/Fort Worth Service Port and the Los Angeles/Long Beach Seaport, and through a comprehensive review of importation documents provided by the company. In addition, EPA’s investigation showed that the company obtained certificates of conformity for numerous vehicles without conducting required emissions testing. In October 2013, EPA voided 45 invalid certificates of conformity held by the company, which affected over 21,000 additional model year 2006-2011 highway motorcycles and recreational vehicles. The CAA requires that all vehicles have EPA-issued certificates of conformity, warranty, and labeling prior to being imported or sold in the United States to demonstrate that they meet federal emission standards. Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone or smog. This settlement is part of EPA’s continuing effort to ensure that all vehicles imported into the U.S. meet federal limits for emissions of harmful pollution. American Lifan, based in Dallas, Texas until last year, imports highway motorcycles, recreational vehicles, gasoline engines, and gasoline-powered generators, manufactured by Lifan Industry (Group) Co., Ltd., Chongqing Lifan Industry (Group) Imp. & Exp. Co., Ltd., China Lifan Industry (Group) Co., Ltd. and Chongqing Lifan Power Co., Ltd. More information for prospective importers on applicable requirements: http://www.epa.gov/otaq/imports/. For the specific certificates of conformity voided by the EPA: http://epa.gov/otaq/motor-void.htm. More information on the settlement: http://www2.epa.gov/enforcement/american-lifan-industry-inc-settlement

Defendants (1)

• American Lifan Industry, Inc.Named in complaintNamed in settlement

Facilities (1)

• AMERICAN LIFAN

  10990 PETAL STREET, DALLAS, TX, 75238

  Registry ID: 110058291405

Statutes cited

• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines
• CAA 213 — Non-road Engines & Vehicles

Enforcement conclusions (1)

• American Lifan Industryentered 2014-03-25

  Primary law: CAA

  Federal penalty: $630,000

Timeline (3 milestones)

• 2014-03-25Complaint Filed/Proposed Order
• 2014-03-25Final Order Issued
• 2014-03-31Enforcement Action Data Entered