EPA Hits CFMOTO with $725,000 Penalty Over Illegal Imports

CFMOTO has agreed to pay a penalty of $725,000 courtesy of the United States Environmental Protection Agency (EPA).

CFMoto Powersports, Inc., based in Plymouth, Minn., Zhejiang CFMOTO Power Co., Ltd., and Chunfeng Holding Group Co., Ltd., both based in China, will jointly pay the penalty.

As well, CFMOTO will recall and replace fuel tanks that better control gasolite vapors in approximately 1,000 vehicles and take other steps to control pollution stemming from the illegal import of over 12,000 recreational vehicles and highway motorcycles. These vehicles were manufactured in China and imported without the required certification indicating that emissions would meet federal standards.

“Enforcing emission standards is a critical way we protect clean air for all Americans,” says Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “The upgrades and changes required by today’s settlement will help reduce harmful air pollution that can cause respiratory illnesses, aggravate asthma and lead to smog.”

In the settlement, the EPA alleges that over 12,000 highway motorcycles and recreational vehicles imported by the companies between 2007 and 2013 were not certified by EPA, as required by the Clean Air Act (CAA), to meet applicable federal emission standards. Of these, EPA found that 993 vehicles had fuel tanks that did not operate properly to control evaporative emissions, or gasoline vapors, and that approximately 1,400 vehicles were imported without proper emission control information labels.

In addition to the penalty, the companies must institute a Recall and Fuel Tank Replacement Program to replace all uncertified fuel tanks with certified ones to prevent any excess gasoline vapors. The companies must also correct the emission control information labels for those vehicles that are still within the control of the companies.

EPA discovered the alleged violations through joint inspections conducted with the U.S. Department of Homeland Security’s Bureau of Customs and Border Protection and through a review of importation documents and other information provided by the companies.