[Federal Register Volume 62, Number 216 (Friday, November 7, 1997)]
[Notices]
[Pages 60236-60239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29501]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 98-C0001]


In the Matter of Yongxin International, Inc., a Corporation; 
Provisional Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional acceptance of a settlement agreement under the 
Consumer Product Safety Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 
Sec. 1118.20(e)-(h). Published below is a provisionally-accepted 
Settlement Agreement with Yongxin International, Inc., a corporation, 
``containing a civil penalty of $50,000.''

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by November 22, 1997.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 98-C0001, Office of the 
Secretary, Consumer Product Safety Commission, Washington D.C. 20207.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney, 
Office of Compliance and Enforcement, Consumer Product Safety 
Commission, Washington, D.C. 20207; telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: November 4, 1997.
Sadye E. Dunn,
Secretary.

United States of America Consumer Product Safety Commission

[CPSC Docket No. 98-C0001]

In the Matter of Yongxin International, Inc., a Corporation

Settlement Agreement and Order

    1. Yongxin International, Inc. (hereinafter, ``Yongixin'' or 
``Respondent''), a corporation, enters into this Settlement Agreement 
(hereinafter, ``Agreement''), and agrees to the entry of the Order 
incorporated herein. The purpose of this Agreement and Order is to 
settle the staff's allegations that Yongxin knowingly imported into the 
United States for sale and distribution in United States commerce 
cigarette lighters that are subject to and failed to comply with the 
Safety Standard For Cigarette Lighters (hereinafter, ``Standard''), 16 
C.F.R. part 1210, in violation of section 19(a)(1) of the Consumer 
Product Safety Act (CPSA), 15 U.S.C. Sec. 2068(a)(1).

I. The Parties

    2. The ``staff'' is the staff of the Consumer Product Safety 
Commission (hereinafter, ``Commission'' or ``CPSC''), an independent 
regulatory commission of the United States established pursuant to 
section 4 of the CPSA, 15 U.S.C. Sec. 2053.
    3. Since 1992, Yongxin has been a corporation organized and 
existing under the laws of the State of California. Its principal 
corporate offices are located at 17870 Castleton Street, Suite 260, 
City of Industry, CA 91748. Yongxin is an importer, broker, and 
distributor of various consumer items including cigarette lighters.

II. Allegations of the Staff

    4. On three occasions between October 21, 1994, and June 18, 1996, 
Yongxin knowingly imported into the United States for sale and 
distribution in United States commerce 83 kinds of disposable and 
novelty cigarette lighters (141,300 units). These cigarette lighters 
are identified and described as follows:

------------------------------------------------------------------------
  Collection date*                        Type of lighter,    Number of 
     entry date          Sample No.           model No.        lighters 
------------------------------------------------------------------------
10/21/94...........  T-867-8061........  Disposable, No. 1.       11,000
10/21/94...........  T-867-8062........  Novelty, No. 5....        2,400
10/21/94...........  T-867-8063........  Disposable, No. 8.        2,400
10/21/94...........  T-867-8064........  Novelty, No. 9....        1,000

[[Page 60237]]

                                                                        
10/21/94...........  T-867-8065........  Novelty, No. 2....        1,500
12/09/94 *.........  T-867-8117........  Novelty, No. 1....        2,500
12/09/94 *.........  T-867-8118........  Disposable, No. 3.       10,200
12/09/94 *.........  T-867-8119........  Disposable, No. 4.        2,000
12/09/94 *.........  T-867-8120........  Novelty, No. 5....        2,000
12/09/94 *.........  T-867-8121........  Disposable, No. 6.        2,000
12/09/94 *.........  T-867-8123........  Disposable, No. 8.       10,000
12/09/94 *.........  T-867-8122........  Disposable, No. 7.       10,000
12/09/94 *.........  T-867-8124........  Disposable, No. 37        2,500
12/09/94 *.........  T-867-8125........  Novelty, No. 119..       18,000
12/09/94 *.........  T-867-8126........  Novelty, No. 511..        5,000
12/09/94 *.........  T-867-8127........  Novelty, No. 1410.        8,000
06/18/96...........  96-860-6126.......  Novelty...........          500
06/18/96...........  96-860-6127.......  Novelty...........          500
06/18/96...........  96-860-6128.......  Novelty...........          500
06/18/96...........  96-860-6129.......  Novelty...........        1,000
06/18/96...........  96-860-6130.......  Novelty...........          500
06/18/96...........  96-860-6131.......  Novelty...........          540
06/18/96...........  96-860-6132.......  Novelty...........        3,600
06/18/96...........  96-860-6133.......  Novelty...........           50
06/18/96...........  96-860-6134.......  Novelty...........           20
06/18/96...........  96-860-6135.......  Novelty...........           20
06/18/96...........  96-860-6136.......  Disposable........           20
06/18/96...........  96-860-6137.......  Disposable........           20
06/18/96...........  96-860-6138.......  Disposable........           20
06/18/96...........  96-860-6139.......  Disposable........           50
06/18/96...........  96-860-6140.......  Disposable........        7,200
06/18/96...........  96-860-6141.......  Disposable........          300
06/18/96...........  96-860-6142.......  Disposable........           55
06/18/96...........  96-860-6143.......  Disposable........          200
06/18/96...........  96-860-6144.......  Disposable........          250
06/18/96...........  96-860-6145.......  Novelty...........          500
06/18/96...........  96-860-6146.......  Novelty...........          500
06/18/96...........  96-860-6147.......  Novelty...........          100
06/18/96...........  96-860-6148.......  Novelty...........        2,000
06/18/96...........  96-860-6149.......  Novelty...........        1,200
06/18/96...........  96-860-6150.......  Disposable........          864
06/18/96...........  96-860-6151.......  Novelty...........        1,056
06/18/96...........  96-860-6152.......  Novelty...........        1,000
06/18/96...........  96-860-6153.......  Novelty...........        2,000
06/18/96...........  96-860-6154.......  Novelty...........       10,000
06/18/96...........  96-860-6155.......  Novelty...........          500
06/18/96...........  96-860-6156.......  Novelty...........          500
06/18/96...........  96-860-6157.......  Novelty...........        1,000
06/18/96...........  96-860-6158.......  Disposable........          200
06/18/96...........  96-860-6159.......  Disposable........          200
06/18/96...........  96-860-6160.......  Disposable........          600
06/18/96...........  96-860-6161.......  Disposable........          500
06/18/96...........  96-860-6162.......  Disposable........          500
06/18/96...........  96-860-6163.......  Disposable........        1,500
06/18/96...........  96-860-6164.......  Novelty...........          500
06/18/96...........  96-860-6165.......  Novelty...........           20
06/18/96...........  96-860-6166.......  Novelty...........        2,000
06/18/96...........  96-860-6167.......  Novelty...........        2,600
06/18/96...........  96-860-6168.......  Novelty...........          100
06/18/96...........  96-860-6169.......  Novelty...........           20
06/18/96...........  96-860-6170.......  Novelty...........           80
06/18/96...........  96-860-6171.......  Disposable........          500
06/18/96...........  96-860-6172.......  Novelty...........          500
06/18/96...........  96-860-6173.......  Novelty...........          300
06/18/96...........  96-860-6174.......  Disposable........          300
06/18/96...........  96-860-6175.......  Disposable........          300
06/18/96...........  96-860-6176.......  Disposable........          300
06/18/96...........  96-860-6177.......  Disposable........          300
06/18/96...........  96-860-6178.......  Disposable........          300
06/18/96...........  96-860-6179.......  Disposable........          300
06/18/96...........  96-860-6180.......  Disposable........          500
06/18/96...........  96-860-6181.......  Novelty...........          200
06/18/96...........  96-860-6182.......  Disposable........          200
06/18/96...........  96-860-6183.......  Disposable........          500
06/18/96...........  96-860-6184.......  Disposable........          100
06/18/96...........  96-860-6185.......  Disposable........           50

[[Page 60238]]

                                                                        
06/18/96...........  96-860-6186.......  Disposable........           50
06/18/96...........  96-860-6187.......  Novelty...........           50
06/18/96...........  96-860-6188.......  Novelty...........           50
06/18/96...........  96-860-6189.......  Disposable........          200
06/18/96...........  96-860-6190.......  Disposable........           60
06/18/96...........  96-860-6191.......  Disposable........          100
06/18/96...........  96-860-6192.......  Disposable........          255
------------------------------------------------------------------------

    5. The cigarette lighters identified as disposable cigarette 
lighters in paragraph 4 above are subject to the Commission's Safety 
Standard For Cigarette Lighters at 16 CFR Part 1210, issued under 
section 9 of the CPSA, 15 U.S.C. Sec. 2058 because they are fueled by 
butane, isobutane, propane, or other liquified hydrocarbon, or a 
mixture containing any of these, whose vapor pressure at 75 deg.F 
(24 deg.C) exceeds a gage pressure of 15 psi (103kPA), and they have a 
customs valuation or ex-factory price under $2.00, as adjusted every 5 
years, to the nearest $0.25, in accordance with the percentage changes 
in the monthly Wholesale Price Index from June 1993.
    6. The cigarette lighters identified as novelty cigarette lighters 
in paragraph 4 above are subject to the Commission's Safety Standard 
For Cigarette Lighters at 16 CFR Part 1210, issued under section 9 of 
the CPSA, 15 U.S.C. Sec. 2058 because they have entertaining audio or 
visual effects, or they depict (logos, decals, art work, etc.) or 
resemble in physical form or function articles commonly recognized as 
appealing to or intended for use by children under 5 years of age.
    7. The cigarette lighters identified in paragraph 4 above failed to 
comply with the child resistant requirements of the Standard at 16 CFR 
Sec. 1210.3 because they lacked a child resistant mechanism.
    8. The cigarette lighters identified in paragraph 4 above were not 
labeled in accordance with the labeling requirements of the Standard at 
16 CFR Sec. 1210.12(c).
    9. The cigarette lighters identified in paragraph 4 above were not 
accompanied by a certificate of compliance as required by the Standard 
at 16 CFR Sec. 1210.12(b).
    10. The Respondent failed to submit to the Office of Compliance, 
Division of Regulatory Management written reports at least 30 days 
prior to the importation of the cigarette lighters identified in 
paragraph 4 above as required by the Standard at 16 CFR 
Sec. 1210.17(b).
    11. The Respondent knowingly committed the acts set forth in 
paragraphs 4 through 10 above, in violation of section 19(a)(1) of the 
CPSA, 15 U.S.C. Sec. 2068(a)(1), for which a civil penalty may be 
imposed pursuant to section 20(a)(1) of the CPSA, 15 U.S.C. 
Sec. 2069(a)(1).

 III. Response of Respondent

    12. Respondent denies the allegations of the staff set forth in 
paragraphs 4 through 11 above that it knowingly imported into the 
United States for sale and distribution in United States commerce 
disposable and novelty cigarette lighters that are subject to and 
failed to comply with the requirements of the Commission's Safety 
Standard For Cigarette Lighters, 16 CFR Part 1210, in violation of 
section 19(a)(1) of the CPSA, 15 U.S.C. Sec. 2068(a)(1), for which a 
civil penalty may be imposed pursuant to section 20(a)(1) of the CPSA, 
15 U.S.C. Sec. 2069(a)(1).

IV. Agreement of the Parties

    13. The Commission has jurisdiction over this matter under the 
Consumer Product Safety Act, 15 U.S.C. 2051 et seq.
    14. Upon final acceptance by the Commission of this Settlement 
Agreement and Order, the Commission shall issue the attached Order 
incorporated herein by reference.
    15. The Commission does not make any determination that the 
Respondent knowingly violated the CPSA. This Agreement is entered into 
for the purposes of settlement only.
    16. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, the Respondent knowingly, 
voluntarily, and completely waives any rights it may have in this 
matter (1) to an administrative or judicial hearing, (2) to judicial 
review or other challenge or contest of the validity of the 
Commission's actions, (3) to a determination by the Commission as to 
whether the Respondent failed to comply with the CPSA as aforesaid, (4) 
to a statement of findings of facts and conclusions of law, and (5) to 
any claims under the Equal Access to Justice Act.
    17. For purposes of section 6(b) of the CPSA, 15 U.S.C. 
Sec. 2055(b), this matter shall be treated as if a complaint had 
issued; and the Commission may publicize the terms of this Settlement 
Agreement and Order.
    18. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, this Settlement Agreement and Order shall be 
placed on the public record and shall be published in the Federal 
Register in accordance with the procedures set forth in 16 C.F.R. 
Secs.  1118.20(e)-(h). If the Commission does not receive any written 
request not to accept the Settlement Agreement and Order within 15 
days, the Settlement Agreement and Order will be deemed finally 
accepted on the 16th day after the date it is published in the Federal 
Register.
    19. The parties further agree that the Commission shall issue the 
attached Order; and that a violation of the order shall subject the 
Respondent to appropriate legal action.
    20. Agreements, understandings, representations, or interpretations 
made outside of this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.
    21. The provisions of the Settlement Agreement and Order shall 
apply to Respondent and each of its successors and assigns.

    Dated: September 16, 1997.
Respondent Yongxin International, Inc.

Jian Hong Yang,
Secretary, Yougxin International, Inc., 17870 Castleton Street, Suite 
260, City of Industry, CA 91748.
Commission Staff
Eric L. Stone,
Director, Division of Administrative Litigation, Office of Compliance.
David Schmeltzer,
Assistant Executive Director, Office of Compliance, Consumer Product 
Safety Commission, Washington, DC 20207-0001.

    Dated: September 22, 1997.
Dennis C. Kacoyanis,
Trial Attorney, Division of Administrative Litigation, Office of 
Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Respondent Yongxin International, Inc.,

[[Page 60239]]

a corporation, and the staff of the Consumer Product Safety Commission; 
and the Commission having jurisdiction over the subject matter and 
Yongxin International, Inc.; and it appearing that the Settlement 
Agreement and Order is in the public interest, it is
    Ordered, that the Settlement Agreement be and hereby is accepted; 
and it is
    Further Ordered, that upon final acceptance of the Settlement 
Agreement and Order, Yongxin International, Inc. shall pay the 
Commission a civil penalty in the amount of fifty thousand and 00/100 
dollars ($50,000.00) in three (3) payments. The first payment sixteen 
thousand six hundred sixty-seven and 00/100 dollars ($16,667.00) shall 
be due within twenty (20) days after service upon Respondent of the 
Final Order of the Commission accepting the Settlement Agreement. The 
second payment of sixteen thousand six hundred sixty-seven and 00/100 
dollars ($16,667.00) shall be made within 12 months after service of 
the Final Order upon Respondent. The third payment of sixteen thousand 
six hundred and sixty-six and 00/100 dollars ($16,666.00) shall be made 
within 24 months after service of the Final Order upon Respondent. 
Payment of the full amount of the civil penalty shall settle fully the 
staff's allegations set forth in paragraphs 4 through 11 of the 
Settlement Agreement that Yongxin International, Inc. knowingly 
violated the CPSA. Upon the failure by Yongxin International, Inc. to 
make a payment or upon the making of a late payment by Yongxin 
International, Inc. the entire amount of the civil penalty is due and 
payable, and the interest on the outstanding balance shall accrue and 
be paid at the federal legal rate of interest under the provisions of 
28 U.S.C. Secs.  1961 (a) and (b).

    Provisionally accepted and Provisional Order issued on the 4th 
day of November, 1997.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-29501 Filed 11-6-97; 8:45 am]
BILLING CODE 6355-01-M