U.S. ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C.
In the Matter of: David Nelson Respondent.
ADMINISTRATIVE SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT is made and entered into by and between the United States Environmental Protection Agency EPA and David Nelson of Tacoma, Washington Respondent.
1. The purpose of this Agreement is to resolve any and all claims by EPA under the Act and
Part 85 arising out of the importation of 17 uncertified motor vehicles in Respondent's
U.S. Customs entry number ACI-8261233-6 as described in Table 1, and to ensure that
future violations are avoided.
Applicable Statutory and Regulatory Provisions
2. 40 C.F.R. § 85.150 1 applies to motor vehicles which are offered for importation or
imported into the United States and for which the Administrator has promulgated
regulations under part 86 prescribing emission standards.
3. EPA promulgated emission regulations for model year 1977 and later model year new
motor vehicles including emission standards and requirements to obtain certificates of
conformity in 40 C.FR. Part 86, subpts. A- C.
4. 40 C.F.R. § 85.15 13 prohibits the importation of a motor vehicle which in not covered by
a certificate of conformity.
5. Section 216a2 of the Act defines motor vehicle as any self-propelled vehicle designed
for transporting persons or property on a street or highway. EPA has further explained
that a disassembled vehicle or an approximate disassembled vehicle constitutes a motor
vehicle. EPA Kit Car Policy July 8, 1994.
6. Certificate of Conformity: A "Certificate of Conformity" means the document issued by EPA to a manufacturer under 40 C.F.R. Part 86 after EPA has determined that the
manufacturer's application is complete and that the engine family meets the requirements
ofthe applicable regulations and the Act. Issuance ofthe Certificate of Conformity
permits production of motor vehicles built in accordance with the manufacturer's
application provided that the production is within the Model Year for which the
Certificate of Conformity is issued.
7. Section 203a1 of the Act, 42 U.S.C. § 7522a1 prohibits the importation into the
United States of any new motor vehicle manufactured after the effective date of the
regulations unless the motor vehicle is covered by an EPA certificate of conformity.
8. Under Section 205a of the Act, 42 U.S.C. § 7524a, any person who violates Section
7522a, is subject to a civil penalty of not more than $32,500 for each motor vehicle.
9. EPA alleges that Respondent imported into the United States 17 uncertified motor
vehicles as described in Table 1 attached.
10. Based on the forgoing, EPA alleges that the Respondent violated Section 203a1 ofthe
Act, 42 U.S.C. § 7522a1, and its implementing regulations.
11. In August of 2006, Respondent imported 17 motor vehicles Customs and Border
Protection Customs entry number AC 1-8261233-6. Customs detained this shipment at
the Port of Portland, Oregon, and has subsequently siezed the shipment.
12. Respondent is the importer of the 17 motor vehicles identified in Table 1.
13. The motor vehicles listed in Table 1 were manufactured after the dates of the applicable
regulations. As a consequence, EPA requires the importation of certified motor vehicles.
14. The motor vehicles listed in Table I are not certified. Accordingly, as the importer of
these motor vehicles, the Respondent imported these engines in violation of Section
203a ofthe Clean Air Act, 42 U.S.C. §7542a, and the implementing regulations.
Terms of Agreement
15. Within 60 days of the date of this Agreement or such other time as required by U.S.
Customs, Respondent shall submit to EPA the U.S. Customs documentation proving that
each of the motor vehicles listed in Table I has been exported to a location outside the
North American continent.
16. All submissions shall be sent to EPA at the following address:
Leslie A. Kirby-Miles U.S. EPA, OECA/AED mailcode 2242A 1200 Pennsylvania Ave NW
Washington, DC 20460-0001 Facsimile: 312 886-0747
17. Respondent shall pay to the United States a civil penalty of $6,000 within 30 calendar
days of the effective date of this Agreement. Late payment of the civil penalty is subject
to interest and fees as specified in 31 U.S.C. § 3717 and stipulated penalties pursuant to
Paragraph 23 of this Agreement. Respondent agrees to pay the amount by certified check
or cashier's check payable to the "United States of America," and to mail the payment to:
U.S. Environmental Protection Agency
Washington Accounting Operations
P.O. Box 360277M
Pittsburgh, Pennsylvania 15251
ATTN: AED/MSEB # 7171
Simultaneously, a photocopy of the check shall be mailed to EPA at the address specified
in Paragraph 16 or faxed to 312 866-0747 to the attention of Leslie A. Kirby-Miles.
Such check shall be identified with the AED/MSEB number and Respondent's name.
18. Respondent agrees that it will not import any motor vehicles or engines manufactured on or after the dates of the applicable regulations unless the motor vehicles or engines
comply with all applicable regulations.
19.The effective date of this Agreement is the date that EPA signs the Agreement.
20. Respondent hereby represents that the individual or individuals signing this Agreement
on behalf of Respondent are authorized to do so on behalf of Respondent and that such
signature is sufficient to bind Respondent, its agents, assigns, or successors.
21. Notwithstanding any other provision of this Agreement, upon Respondent's failure to
perform, or default of or failure to comply with any terms ofthis Agreement, EPA may
refer this matter to the United States Department of Justice to recover civil penalties
pursuant to Section 205 of the Act, 42 U.S.C. § 7524, and pursue any other remedies
available to it. Respondent specifically agrees that in the event of such default or failure
to comply, EPA may proceed in an action based on the original claim of violation ofthe
Act, and 40 C.F.R. Part 85. Respondent expressly waives its right to assert that such
action is barred by any applicable statute of limitation, see 28 U.S.C. § 2462.
22.The Effect of Settlement as described in Paragraph 25 ofthis Agreement is conditioned
upon the truthfulness, accuracy and completeness of Respondent's disclosures and
representations to EPA under this Agreement, including but not limited to representations
regarding importations contained in Table 1 and the prompt and complete exportation of
all motor vehicles identified in Table 1 in accordance with this Agreement.
23. For failure to comply with the terms of this Agreement on a timely basis Respondent shall pay stipulated penalties to the United States as follows:
For failure to timely pay the penalty, or provide proof of such payment, pursuant
to Paragraph 17, $500 per day.
C. For failure to timely export the motor vehicles identified in Table 1, or provide
proof of such exportation, pursuant to Paragraph 15, $500 per day.
24. All stipulated penalties under Paragraph 23 of this Agreement shall begin to
accrue on the day after performance is due, and shall continue to accrue until the
day compliance is achieved. Nothing herein shall prevent the simultaneous
accrual of separate stipulated penalties for separate violations of this Agreement.
All stipulated penalties shall be paid in accordance with Paragraph 17 and shall be
paid within five days of written demand by EPA. Stipulated penalties shall not be
construed as prohibiting, altering, or in any way limiting the ability of EPA from
seeking any other remedy or sanction available by virtue of Respondent's violation
of this Agreement or of the statutes or regulations upon which the Agreement is
Effect of Agreement
25. Upon completion of the terms of this Agreement, the alleged violations described
in this Agreement shall be considered resolved.
The following agree to the terms of this Agreement:
Manufacturer Model VIN Model Year Quantity
Source : EPA Website