[Federal Register Volume 59, Number 163 (Wednesday, August 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20708]
[[Page Unknown]]
[Federal Register: August 24, 1994]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 94-C0014]
Youngland Import and Export, 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 Part
1118.20(e)-(h). Published below is a provisionally-accepted Settlement
Agreement with Youngland Import and Export, Inc., a corporation.
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 September 8, 1994.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 94-C0014, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT:
Melvin I. Kramer, 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: August 16, 1994.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. Youngland Import and Export, Inc. (hereinafter, ``Youngland''),
a corporation, enters into this Settlement Agreement (hereinafter,
``Agreement'') with the staff of the Consumer Product Safety
Commission, and agrees to the entry of the Order described herein. The
purpose of The Agreement and Order is to settle the staff's allegations
that Youngland knowingly caused the introduction into commerce of
certain banned hazardous substances, namely toys, and caused the export
of certain banned hazardous substances in violation of sections
2(q)(1)(A) and 14(d) of the Federal Hazardous Substances Act (FHSA), 15
U.S.C. 1261(q)(1)(A) and 1273(d), which are prohibited acts under
sections 4 (a) and (i) of the FHSA, 15 U.S.C. 1263 (a) and (i).
I. Jurisdiction
2. The Commission had jurisdiction over Youngland and the subject
matter of this Settlement Agreement pursuant to section 30(a) of the
Consumer Product Safety Act (hereinafter, ``CPSA''), 15 U.S.C. 2079(a),
and sections 2(f)(1)(A), 4 (a) and (i) and 5(c) of the FHSA, 15 U.S.C.
1261(F)(1)(A), 1263 (a) and (i) and 1264(c).
II. The Parties
3. The ``staff'' is the staff of the Consumer Product Safety
Commission, an independent regulatory commission of the United States
established pursuant to section 4 of the CPSA, 15 U.S.C. 2053.
4. Youngland is a corporation organized and existing under the laws
of the State of New Jersey with its principal corporate offices located
at 2510 Valentine Avenue, Bronx, NY 10458. Youngland is engaged, among
other things, in the business of importing and selling in the United
States children's toys and novelty items.
III. Allegations of the Staff
5. From at least September 25, 1991, to September 15, 1992,
Youngland introduced into interstate commerce, certain toys, namely
``Breakfast Set'' model 686, and ``Flip Over Buggy Car'' model 2008,
which are intended for use by children under three years of age. These
toys failed to comply with the Commission's requirements for toys and
other articles intended for use by children under three years of age
which present choking, aspiration, or ingestion hazards because of
small parts. (Small Parts Regulation, 16 CFR Part 1501.) One or more of
the parts of the toys in question separated when subjected to the use
and abuse testing specified in 16 CFR 1500.51 and 1500.52. The
separated parts fit entirely within the test cylinder specified in 16
CFR 1501.4.
6. Because these toys failed to meet the requirements of the Small
Parts Regulation, each of them presents a ``mechanical hazard'' within
the meaning of section 2(s) of the FHSA, 15 U.S.C. 1261(s) (choking,
aspiration and/or ingestion of small parts). Pursuant to 16 CFR
1500.18(A)(9), each of those toys is a ``banned hazardous substance''
within the meaning of section 2(q)(1)(A) of the FHSA, 15 U.S.C.
1261(q)(1)(A) (any toy or other article intended for use by children
which bears or contains a hazardous substance). The knowing
introduction or delivery for introduction into interstate commerce of
these banned hazardous substances and/or the knowing receipt in
interstate commerce and the delivery or proffered delivery by Youngland
are prohibited acts pursuant to sections 4 (a) and (c) of the FHSA, 15
U.S.C. 1263 (a) and (c).
7. Pursuant to section 14(d) of the FHSA 15 U.S.C. 1273(d) and 16
CFR 1019, Youngland is required to notify the Commission, in writing,
prior to the exportation of any banned hazardous substance. This notice
must specify the (1) anticipated shipment date; (2) country and port of
destination; (3) the quantity of the substance that will be exported;
and (4) any additional information required by regulation.
8. On September 15, 1992, the staff collected samples of Model 2008
``Flip Over Buggy Car.'' Based on testing by the Commission's
Engineering laboratory this product was found to be a ``banned
hazardous substance'' under the Federal Hazardous Substance Act, 15
U.S.C. 1261 et seq. The Commission's Eastern Regional Office advised
Youngland of these findings in a letter dated September 30, 1992.
9. In the September 30, 1992 letter, and in previous contact with
the staff, Youngland was advised, or otherwise made aware, of the
alternatives for disposing of these violative products, including
reexport, and the appropriate procedures to follow.
10. On January 15, 1993, Youngland submitted an export notification
request detailing plans to export ``600 dozen'' of these toys to Hong
Kong. Permission was granted by the staff on March 3, 1993.
11. No further export notification requests were received from
Youngland. On March 3, 1994 an inspection of Youngland to check on the
disposition of these toys revealed that Youngland had exported 7200
units of them to a firm in Costa Rica on or about August 18, 1993. No
export notification was ever received for this shipment.
12. Youngland's knowing failure to provide the Commission with
advance notice of its intent to export these products to Costa Rica
constitutes a violation of the export notification requirements of
section 14(d) of the FHSA, 15 U.S.C. Sec. 1273(d), and is a prohibited
act under section 4(i) of the FHSA, 15 U.S.C. Sec. 1263(i).
IV. Response of Youngland
13. Youngland denies the allegations of the staff that it has
knowingly introduced or delivered for introduction into commerce or
received in commerce and then delivered or proffered for delivery
thereof for pay or otherwise of the aforesaid banned hazardous toys,
that it knowingly failed to comply with export notification
requirements of the FHSA, or that it has violated the FHSA in any way.
V. Agreement of the Parties
14. The Consumer Product Safety Commission has jurisdiction over
Youngland and the subject matter of this Settlement Agreement and Order
under the following acts: Consumer Product Safety Act (15 U.S.C. 2051
et seq.), and the Federal Hazardous Substances Act, 15 U.S.C. 1261 et
seq.
15. Youngland agrees to pay to the Commission a civil penalty in
the amount of FIFTEEN THOUSAND AND 00/100 DOLLARS ($15,000.00) to be
paid in three (3) equal installments of $5,000. The first payment will
be due within twenty (20) days after service of the Final Order of the
Commission accepting this Settlement Agreement. Thereafter, Youngland
agrees to pay $5,000 by January 1, 1995 and $5,000 by June 1, 1995.
These payments are made in full settlement of the staff's allegations
set forth in paragraphs five through twelve above that Youngland
violated the FHSA. Upon the failure by Youngland to make a payment or
upon the making of a late payment by Youngland (a) the entire amount of
the civil penalty shall be due and payable, and (b) 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. (a) and (b).
16. The Commission does not make any determination that Youngland
knowingly violated the FHSA. The Commission and Youngland agree that
this Agreement is entered into for the purposes of settlement only.
17. Upon final acceptance of this Settlement Agreement by the
Commission and issuance of the Final Order, Youngland 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 Youngland failed to comply with the FHSA as aforesaid, and (4)
to a statement of findings of fact and conclusions of law.
18. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b),
this matter shall be treated as if a complaint had been issued; and,
the Commission may publicize the terms of the Settlement Agreement and
Order.
19. 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 CFR
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.
20. The parties further agree that the Commission shall issue the
attached Order, incorporated herein by reference; and that a violation
of the Order shall subject Youngland to appropriate legal action.
21. No agreement, understanding, representation, or interpretation
not contained in this Settlement Agreement and Order may be used to
vary or to contradict its terms.
22. The provisions of the Settlement Agreement and Order shall
apply to Youngland and each of its successors and assigns.
Respondent Youngland Import and Export, Inc.
Dated: June 17, 1994.
Raymond Srour,
President, Youngland Import and Export, Inc., 2510 Valentine Avenue,
Bronx, New York 10458.
Commission Staff
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement.
Eric L. Stone,
Acting Director, Office of Compliance and Enforcement, Division of
Administrative Litigation.
Dated: July 18, 1994.
Melvin I. Kramer,
Trial Attorney, Office of Compliance and Enforcement, Division of
Administrative Litigation.
Order
Upon consideration of the Settlement Agreement entered into between
respondent Youngland, a corporation, and the staff of the Consumer
Product Safety Commission; and the Commission having jurisdiction over
the subject matter and Youngland; and it appearing that the Settlement
Agreement is in the public interest, it is
Ordered, that the Settlement Agreement be and hereby is accepted,
as indicated below; and it is
Further Ordered, that upon final acceptance of the Settlement
Agreement, Youngland shall pay to the Order of the Consumer Product
Safety Commission a civil penalty in the amount of FIFTEEN THOUSAND AND
00/100 DOLLARS ($15,000.00) to be paid in three equal installments of
$5,000. The first payment will be due within twenty (20) days after
service of the Final Order of the Commission accepting this Settlement
Agreement. Thereafter, Youngland agrees to pay $5,000 by January 1,
1995 and $5,000 by June 1, 1995. Payment of the total $15,000 civil
penalty shall settle fully the staff's allegations set forth in
paragraphs 5 through 12 of the Settlement Agreement and Order that
Youngland violated the FHSA. Upon the failure by Youngland to make a
payment or upon the making of a late payment by Youngland (a) the
entire amount of the civil penalty shall be due and payable, and (b)
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.
1961(a) and (b).
Provisionally accepted and Provisional Order issued on the 16th
day of August 1994.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 94-20708 Filed 8-23-94; 8:45 am]
BILLING CODE 6355-01-M
