United States
                                                          Environmental
                                                          Protection Agency
                                                                         Office of Enforcement
                                                                         and Compliance
                                                                         Assurance(2201 A)
                                                                                          EPA 300 N 06 008


EPA Enforcing  Stringent Standards for All  Nonroad  Engines
 Agency Assesses $819,000 in Penalties for More Than 55,000 Pieces of Illegal Equipment
   Imports are surging, mostly from
China,  of small engines used  in
nonroad equipment such as  small
tractors,  lawnmowers,   off-road
motorcycles  and  generators.   A
disturbing portion of these engines are
not certified to meet emission standards
under the Clean Air Act.  The situation
is made worse by the dramatic increase
in the number of foreign manufacturers
of the equipment and the increase in
inexperienced U.S. companies and
individuals who import it. Illegal
equipment is being offered for sale to
customers in this  country through
retail outlets and, increasingly, over
the Internet.The U.S.Environmental
Protection Agency (EPA) and  the
U. S.  Customs and Border Protection
(CBP)  have teamed up to intercept
this influx of illegal imports at the
border.
   The Clean Air Act (CAA) prohibits
the manufacture or  importation of all
types  of nonroad  engines  and
equipment unless  the  engines  are
certified by EPA as  meeting emission
standards and display the appropriate
EPA emissions  label.  Imported
equipment containing nonroad engines
that fail to meet all CAA requirements is
subject to seizure and export outside of
North America. The importer of such
illegal equipment or engines will be
required to pay a substantial penalty (as
much as $32,500 per engine).
   EPA is strongly committed to
enforcing its nonroad mobile
source regulations.  In
cooperation  with
                                  CBP, the agency has stepped up
                                  interception of illegal imports. EPA
                                  has also increased its inspections
                                  nationwide at dealerships and of
                                  online companies that import and/or sell
                                  nonroad equipment. Over a recent ten-
                                  month period alone, EPA assessed
                                  $819,155 in penalties for the importation
                                  of 55,832 pieces of illegal nonroad
                                  equipment valued at nearly $ 13 million.

                                  Emissions Impact
                                      Roughly half of the air pollution in
                                            EPA nonroad regulations
                                         cover a variety of equipment,
                                           including small tractors,
                                            lawnmowers, off-road
                                         motorcycles, chainsaws and
                                            excavators  (pictured).
the United States is caused by on-road
and nonroad engines.  These mobile
sources of air pollution include cars,
trucks and buses,  as well  as the wide
range of gasoline and diesel engines
found in nonroad equipment used in
construction, agriculture, and lawn and
garden equipment, in dirt bikes, and as
marine engines.  The air pollutants
emitted by mobile sources include
paniculate matter,  volatile organic
compounds (VOC), air toxics and oxides
of nitrogen (NOx).  These pollutants
cause serious health and environmental
problems.  They have been linked to
many respiratory health problems, such
as asthma, heart disease  and cancer.
Recent CAA emissions standards, in
conjunction  with   advances   in
combustion technology and fuels, are
significantly reducing these emissions.
For example, certified engines now emit
two to three times fewer emissions than
uncertified engines.
   For more pollutant information see
http: //www. epa.gov/otaq/invntory/
overview/pollutants/index, htm

Nonroad Regulations
   Regulated nonroad mobile sources
are a highly diverse group of engines
and equipment, ranging from small
handheld  gasoline engines used in
garden  equipment to very large
locomotive  diesel  engines,  and
  everything in between. ( See Table 1
   inside for an overview of these
     categories.)  The regulations set
      emission limits for each category
      of  nonroad   engines   and
  C.    establish testing, certification,
  ife   labeling, warranty, recall and
   \  record-keeping requirements.
  !  \   Some   nonroad   engine
        categories  have phase-in

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provisions and effective dates that vary
by engine size.  An engine must be
certified by EPA that it  meets
emissions standards and must bear a
permanently affixed EPA emissions
label before it can be imported into
the United States  or produced
domestically for use in this country.
For more information  on nonroad
engines and the applicable federal
regulations  please  see:   http://
www. epa. gov/otaq/invntory/overview/
examples.htm
     Please note that emissions
certification requirements also apply
to stationary diesel engines, and have
been proposed for stationary gasoline
engines. For more information, see
http ://www. epa. gov/ttn/atw/nsps/
cinsps/cinspspg.html and http://
www. epa. gov/ttn/atw/nsps/sinsps/
sinspspg.html

Importer and Manufacturer
Responsibility
   Both the original engine
manufacturer (the company that
assembles the engine) and the
importer are responsible for ensuring
that engines imported to the United
States comply with all certification
standards and requirements. For
example, importers and manufacturers
are prohibited from importing or
manufacturing engines that are not
properly EPA-certified and labeled.
EPA highly recommends that
importers  inspect the engines they
intend to import to verify  that they are
EPA-certified and labeled. Importers
are also responsible for ensuring that
the engine manufacturer will honor the
emissions warranty. (This warranty is
separate and apart from any other
manufacturer warranty.) Depending
on engine type and size, the warranty
period may vary from two to five
years. The importer also bears
responsibility for any requirements
not met by the original engine
manufacturer. For more information,
see:
http ://epa. gov/otaq/imports
Importer Must Complete EPA
Declaration Form
    Importers of gasoline and diesel-
powered nonroad equipment must
demonstrate that the engines comply
with all applicable standards and
requirements. As part of this process,
they must complete EPA Declaration
Form  3520-21,  which  requires
confirmation of EPA certification or a
description of the applicable exemption.
Form 3520-21 must be submitted to CBP
upon request along with other CBP
entry documents;  see 42 U.S.C. § 7601,
and 19 C.F.R. § 12.74.
  The importer must also present the
completed form to EPA officials
upon request and retain a
copy for five years after
         Mobile generators are
       among the most common
     types of nonroad equipment
              regulated by EPA.
                                                   - 2 -
importation. Some exemptions require
EPA approval before importation. The
importer   Form  3520-21,  with
instructions, is available at: http://
www.epa.gov/otaq/imports/forms/3520-
21.pdf

Emissions Certification
Requirements
    EPA    emissions   certification
requirements   apply   to   engines
manufactured in the United States and to
engines that are imported for sale in this

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country.   Ordinarily,  the  engine
manufacturer, not the importer, obtains
EPA certification for imported engines.
However, an engine importer also may
apply to EPAfor a certificate if the importer
assumes all the  responsibilities of the
manufacturer.
   For specific  citations for each
nonroad regulation refer to Table  1.
For certification requirements,  refer
to Table 2.

Enforcement Process When an
Importation Violation is Found
    When EPA or CBP determines that
imported equipment does not meet the
EPA emissions certification requirements,
CBP detains or seizes the equipment. EPA
and CBP then coordinate on enforcement
to address the CAA violations, including
collection of a penalty and exportation of
the illegal equipment. The maximum
penalty is $32,500 for each illegal engine,
although penalties may be reducedforfirst-
time violators and for importers who
voluntarily disclose and remedy the violation
and all prior violations. CBP or EPA may
also initiate a criminal action against an
importer who knowingly makes false or
fraudulent statements, or who omits
material information required in CBP
entry documents. Persons who commit
these crimes are subject to a fine of up to
$250,000 or imprisonment for up to two
years, or both, see42 U.S.C. §7413(c)(2).
Don't Let This Happen to You...
    »An owner of abusiness in Florida
was sentenced to six months house
arrest and two years probation for
attempting to smuggle generators with
uncertified gasoline and diesel engines
into Port Everglades and Miami. The
owner forfeited the generators valued
at $26,885. For more information on this
case, see:
http://www.usdoj.gov/usao/fls/
PressReleases/060504-01 .html
    » A company in Puerto Rico paid a
civil penalty of $100,000 for importing
more than 2,000 uncertified and
unlabeled diesel  and  gasoline
generators. The generators were seized
       Sample Emission Label for Small Gasoline Engines

                 Important Engine Information

    XYZ Manufacturing, Inc.
    This engine is certified to operate on gasoline.
    This engine conforms to 2006 U.S. EPA regulations for small
      nonroad engines.
    Emission Compliance Period: 500 hours
    Engine Family: 6XYZS: 1451AB
    Engine Displacement: 145 cc
    Date of Manufacture: 4/2006
    Exhaust Emission Control: TWC
    Lubricant Requirements: SF15W-40
by CBP during September 2005.  The
company had declared, without proof,
that regulated mobile generators were
for unregulated stationary use.
    »A company in Ohio paid a civil
penalty of $86,000 to EPA and CBP for
importing seven uncertified and falsely
labeled pieces of nonroad construction
equipment with large diesel engines.
The company  had  claimed the
equipment was certified.
    » A company in North Carolina paid
a civil penalty of $62,000 for importing
forty-three uncertified  and unlabeled
small diesel tractors. Three of the tractors
were seized by CBP in Portland, Ore., in
January 2006. The company had claimed
the tractors were certified.
    For more information on Mobile
Source Importation Settlements, see:
http://cfpub.epa.gov/compliance/civil/
programs/caa/importation/

Compliance Assistance
    EPA is also committed to providing
compliance assistance and outreach to
the regulated community so that the
public  and the environment can be
protected from the harmful health
effects of emissions from illegal nonroad
equipment.  For more information, see:
http://www.epa.gov/compliance/
monitoring/programs/caa/mobile.html
and http://www.epa.gov/
OTAQ/actions.htm  and   http://
www. epa. gov/otaq/nonroad. htm

















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Policies That Reward Compliance
    EPA has two policies that reward
companies that bring themselves into
compliance with environmental laws.
Both EPA's Incentives for Self-Policing,
Discovery, Disclosure,  Correction and
Prevention of Violations (Audit Policy)
and its Policy on Compliance Incentives
for Small Businesses (Small  Business
Policy) encourage greater compliance and
environmental audits by substantially
reducing or  eliminating penalties for
entities that voluntarily discover, disclose
and expeditiously correct violations of
environmental law. For more information,
see the following websites:
http: //www. epa.gov/compliance/
incentives/auditing/auditpolicy.html
http: //www. epa.gov/compliance/
incentives/smallbusiness/index.html

Frequently Asked Questions
Question: Does a missing EPA label on
a nonroad diesel or gasoline engine
matter?
Answer: Yes. If an engine is not properly
labeled, the engine  is presumed to be
uncertified.  Therefore, the importer
would not be permitted to import the
engine or sell it in the U. S.

Question: May an uncertified engine
with similar or even identical  emission
characteristics as a certified engine be
legally imported as "certified?"
Answer: No.  Manufacturers may
produce uncertified versions of engines
that are identical to United States'
certified versions as long as the engines
are not intended for the U.S. market.
These engines are not legal  for
importation into this country because
they are not produced under an EPA-
issued certificate,  are not properly
labeled, do not have the required EPA
emissions warranty,  and are not subject
to EPA audits during manufacturing and
potential recall for defects.

Question: May an uncertified engine be
imported for export without documenting
that the engine is merely making an
intermediate stop and without
posting of a bond?
Answer: No. Uncertified
engines that are destined for a
foreign country must be
labeled for export on the
engine and the container.
AnEPADeclarationForm
3520-21 must be
completed and an
appropriate bond must be
paid.
                                               Dirt bikes are regulated under
                                                EPA's recreational vehicles
                                              provisions, 40 CFR parts 1051
                                                       and 1068.
                                                           jsijllilu^^
                                        EPA's Air Enforcement Office

                                        MarkSiegler
                                        siegler.mark@epa.gov
                                        (202) 564-8673

                                        Anne Wick
                                        wick.anne@epa.gov
                                        (202) 564-2063
                           EPA's Air Program Office

                           Imports and Certification
                           Hotline: (734) 214-4100
                           Imports (lmports@epa.gov)
                           Fax requests to (732) 214-
                           IMPO (4676)

                           Important Information:
                           www.epa.gov/otaq/imports/
                           index.htm

                           Certification Test Results:
                           www.epa.gov/otaq/crtest.htm
                           Nonroad Certification Data:
                           www.epa.gov/otaq/
                           certdata.htm
Other Resources

CBP (Customs/ Importations)
www.cbp.gov

CaliforniaAir Resources Board
The State of California has
separate emissions certifications
requirements for nonroad
engines.
General Number (800) 242-4450
                                         Disclaimer
                                         This document attempts to clarify in plain language some EPA provisions. Nothing in this Enforcement
                                         Alert revises or replaces any regulatory provision in the cited part, any other part of the Code of Federal
                                         Regulations, the Federal Register or the Clean Air Act, as amended. For more information:
                                         www.epa.gov/compliance

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