[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