[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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