[Federal Register Volume 68, Number 106 (Tuesday, June 3, 2003)]
[Notices]
[Pages 33105-33108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13747]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 03-C0001]


TGH International Trading, Inc., A Corporation Provisional 
Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Federal Hazardous Substances 
Act in the Federal Register in accordance with the terms of 16 CFR 
1118.20. Published below is a provisionally-accepted Settlement 
Agreement with TGH International Trading, 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 June 18, 2003.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 03-C0001, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney, 
Office of Compliance, Consumer Product Safety Commission, Washington, 
DC 20207; telephone (301) 504-7587.

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

    Dated: May 28, 2003.
Todd A. Stevenson,
Secretary.

Consent Order Agreement

    1. TGH International Trading, Inc. (``TGH'' or ``Respondent'') 
enter into this Consent Order Agreement (hereinafter referred to as 
``Agreement'') with the staff of the Consumer Product Safety Commission 
(``the staff'') pursuant to the Commission's Procedures for Consent 
Order Agreements, 16 CFR 1118.20. The purpose of this Agreement is to 
settle the staff's allegations that Respondent violated sections 4(a) 
and (c) of the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 
1263(a) and (c).

I. The Parties

    2. TGH is a corporation organized and existing under the laws of 
the State of California. TGH's principal place of business is 421 South 
Wall Street, Los Angeles, CA 90013. TGH is an importer and distributor 
of toys.
    3. The ``staff'' is the ``staff'' of the Consumer Product Safety 
Commission, an independent regulatory agency established by Congress 
under section 4 of the Consumer Product Safety Act (CPSA), 15 U.S.C. 
2053.

II. Allegations of the Staff

A. Violations of the Small Parts Regulation
    4. On 12 occasions between May 28, 1994, and April 24, 2002, 
Respondent introduced or caused the introduction into interstate 
commerce; and received in interstate commerce and delivered or 
proffered delivery thereof for pay or otherwise, 30 types of toys 
(49,529 retail units) intended for use by children under three years 
old. These toys are identified and described as follows:

----------------------------------------------------------------------------------------------------------------
                                                 Entry/Collec *
      Sample No.                 Toy                  Date            Exporter         Quantity         LOA
----------------------------------------------------------------------------------------------------------------
S-867-8292...........  Cathy Dolls............         05/28/94  Alltrend..........           30  08/03/94

[[Page 33106]]

 
T-867-8024...........  Rainbow Loco...........         10/05/94  Camke.............          600  10/19/94
T-867-8211...........  Savings Bank Phone.....         03/22/95  Development.......        1,440  07/19/95
T-867-8212...........  Telephone Plano........         03/22/95  Development.......          720  07/19/95
96-860-5862..........  Pull & Push............         04/15/96  Kapo..............          288  05/14/96
97-860-5520..........  Rainbow Loco...........         10/18/96  Kapo..............          240  11/20/96
97-860-5521..........  Animal Funny...........         10/18/96  Kapo..............          720  11/20/96
97-860-5572..........  Port-A-Phone...........         11/20/96  Kapo..............        7,200  01/29/97
98-860-5608..........  Cartoon Car............         10/09/97  Sun Ta............          816  11/28/97
99-860-5683..........  Xylophone/Panda........         07/15/99  Goldoll...........        1,440  08/04/99
99-860-5684..........  Xylophone/Dog..........         07/15/99  Goldoll...........        1,440  08/04/99
99-860-5685..........  Xylophone/Elephant.....         07/15/99  Goldoll...........        1,440  08/04/99
99-860-5686..........  Ice Cream Cart/Panda...         07/15/99  Goldell...........        2,160  08/04/99
99-860-5687..........  Ice Cream Cart/Dog.....         07/15/99  Goldoll...........        2,160  08/04/99
99-860-5688..........  Ice Cream Cart/........         07/15/99  Goldell...........        2,160  08/04/99
00-860-6546..........  Rabbit Pull toy........         03/14/00  Jia Mei...........        5,568  04/03/00
00-860-6547..........  Elephant Pull Toy......         03/14/00  Jia Mei...........        5,568  04/03/00
00-860-6548..........  Lion Pull Toy..........         03/14/00  Jia Mai...........        5,568  04/03/00
00-860-6549..........  Dog Pull Toy...........         03/14/00  Jia Mai...........        5,568  04/03/00
00-860-6550..........  Locomotive Pull Toy....         03/14/00  Jia Mai...........        5,568  04/03/00
00-860-6561..........  Funny Train Pull Toy...         03/14/00  Jia Mai...........          192  04/10/00
00-860-6562..........  Dog Pull Toy...........         03/14/00  Jia Mai...........          192  04/10/00
00-860-6563..........  Rabbit Pull Toy........         03/14/00  Jia Mei...........          192  04/10/00
00-860-6564..........  Dog Pull Toy...........         03/14/00  Jia Mei...........          192  04/10/00
00-860-6565..........  Lion Pull Toy..........         03/14/00  Jia Mai...........          192  04/10/00
01-840-6017..........  Musical Mobile.........         02/05/01  CSCL..............        8,352  03/22/01
01-840-6048..........  African Giraffe........         03/28/01  Goldoll...........        1,440  04/20/01
02-840-7010..........  TV Man Toy.............       * 04/24/02  Superegent........           72  07/02/02
02-840-7011..........  Mushroom House Toy.....       * 04/24/02  Jia Mei...........           48  07/02/02
02-840-7012..........  Guards of Crazing Land.       * 04/24/02  Goldoll...........           17  07/02/02
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    5. The toys identified in paragraph 4 above are intended for 
children under three years old and are subject to the Commission's 
Small Parts Regulation, 16 CFR part 1501.
    6. The toys identified in paragraph 4 above failed to comply with 
the Commission's Small Parts Regulation, 16 CFR part 1501, in that when 
tested under the ``use and abuse'' test methods specified in 16 CFR 
1500.51 and .52, (a) one or more parts of each tested toy separated and 
(b) one or more of the separated parts from each of the toys fit 
completely within the small parts test cylinder, as set forth in 16 CFR 
1501.4.
    7. Because the separated parts fit completely within the test 
cylinder as described in paragraph 6 above, each of the toys identified 
in paragraph 4 above 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).
    8. Each of the toys identified in paragraph 4 above is a 
``hazardous substance'' pursuant to section 2(f)(1)(D) of the FHSA, 15 
U.S.C. 1261(f)(1)(D).
    9. Each of the toys identified in paragraph 4 above is a ``banned 
hazardous substance'' pursuant to section 2(q)(1)(A) of the FHSA, 15 
U.S.C. 1261(q)(1)(A) and 16 CFR 1500.18(a)(9) because it is intended 
for use by children under three years of age and bears or contains a 
hazardous substance as described in paragraph 10 above; and because it 
presents a mechanical hazard as described in paragraph 9 above.
    10. Respondent introduced or caused the introduction into 
interstate commerce; and received in interstate commerce and delivered 
or proffered delivery thereof for pay or otherwise, the banned 
hazardous toys, identified in paragraph 4 above, in violation of 
sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c).
B. Violations of the Rattle Regulation
    11. On one occasion in 2001, Respondent introduced or caused the 
introduction into interstate commerce; and received in interstate 
commerce and delivered or proffered delivery thereof for pay or 
otherwise a rattle set (58,800 retail units) intended for use by 
children. The rattle set is identified and described as follows:

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                                                 Entry/Collec*
      Sample No.                Rattle                Date            Exporter         Quantity         LOA
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01-840-6011..........  Musical Baby Rattle Set         01/31/01  Goldoll...........        8,400  03/08/01
01-840-6012..........  Musical Baby Rattle Set         01/31/01  Goldoll...........        8,400  03/08/01
01-840-6013..........  Musical Baby Rattle Set         01/31/01  Goldell...........        8,400  03/08/01
01-840-6014..........  Musical Baby Rattle Set         01/31/01  Goldell...........        8,400  03/08/01
01-840-6014..........  Musical Baby Rattle Set         01/31/01  Goldell...........        8,400  03/08/01
01-840-6015..........  Musical Baby Rattle Set         01/31/01  Goldell...........        8,400  03/08/01
01-840-6016..........  Musical Baby Rattle Set         01/31/01  Goldell...........        8,400  03/08/01
----------------------------------------------------------------------------------------------------------------

    12. The rattle set identified in paragraph 11 above is subject to, 
but failed to comply with the Commission's Rattle Regulations, 16 CFR 
part 1510, in that when tested under the procedures set forth in 16 CFR 
1510.4, each rattle in the set penetrated the full depth of the test 
fixture.
    13. Because each rattle in the set identified in paragraph 11 above 
penetrated the full depth of the cavity of the test fixture as 
specified in 16 CFR

[[Page 33107]]

1510.4, it presents a ``mechanical hazard'' within the meaning of 
section 2(s) of the FHSA, 15 U.S.C. 1261(s) (choking) and is, 
therefore, a ``hazardous substance'' pursuant to section 2(f)(1)(D) of 
the FHSA, 15 U.S.C. 1261(f)(1)(D).
    14. The rattle set identified in paragraph 11 above is a ``banned 
hazardous substance'' pursuant to section 2(q)(1)(A) of the FHSA, 15 
U.S.C. 1261(q)(1)(A) and 16 CFR 1500.18(a)(15) because it is intended 
for use by children and bears or contains a hazardous substance; and 
because it presents a mechanical hazard as defined in paragraph 13 
above.
    15. Respondent introduced or caused the introduction into 
interstate commerce; and received in interstate commerce and delivered 
or proffered delivery thereof for pay or otherwise, the aforesaid 
banned hazardous rattle set identified in paragraph 11 above, in 
violation of sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and 
(c).
C. Violations of the Labeling Requirements for Certain Toys and Games
    16. On two occasions between March 28, 2001, and April 24, 2002, 
Respondent introduced or caused the introduction into interstate 
commerce; and received in interstate commerce and delivered or 
proffered delivery thereof for pay or otherwise, two types of toys 
(2,890 retail units) intended to use by children who are at least three 
years old but not older than six years old. These toys are identified 
and described as follows:

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                                                 Entry/Collec*
      Sample No.                 Toy                  Date            Exporter         Quality          LOA
----------------------------------------------------------------------------------------------------------------
01-840-6049..........  Snooker Set............         03/28/01  Goldell...........        2,880  04/20/01
02-840-7013..........  Golf Play Toy Set......         04/24/02  ?.................           10  05/21/02
----------------------------------------------------------------------------------------------------------------

    17. The toys identified in paragraph 16 above are subject to, but 
failed to comply with the Labeling Requirements for Certain Toys and 
Games under sections 24(b)(2)(B) and (b)(2)(C) of the FSHA, 15 U.S.C. 
1278(b)(20)(B) and (b)(3)(B) and 16 CFR 1500.19(b)(3)(i) and (b)(4)(i) 
in that the toys did not bear the required cautionary label.
    18. Because they lacked the required labeling, the toys identified 
in paragraph 16 above are ``misbranded hazardous substances'' pursuant 
to sections 2(p)(1)(D) and 24(d) of the FSHA, 15 U.S.C. 1261(p)(1)(D) 
and 24(d) and 16 CFR 1500.19(b)(3)(i) and 4(i).
    19. Respondent introduced or caused the introduction into 
interstate commerce; and received in interstate commerce and delivered 
or proffered delivery thereof for pay or otherwise, the misbranded 
hazardous toys identified in paragraph 16 above, in violation of 
sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c)

III. TGH's Response

    20. TGH denies the allegations of the staff set forth in paragraphs 
4-19 above.

IV. Agreement of the Parties

    21. The Consumer Product Safety Commission has jurisdiction over 
Respondent under the Consumer Product Safety Act (CPSA), 15 U.S.C. 2051 
et seq. and the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 1261 
et seq.
    22. This Settlement Agreement is entered into for settlement 
purposes only and does not constitute findings by the Commission or an 
admission by Respondent that Respondent violated the FHSA.
    23. Upon final acceptance of this Agreement by the Commission and 
issuance of the Final Order, Respondent knowingly, voluntarily, and 
completely waives any rights it may have in the above captioned case 
(1) to an administrative or judicial hearing with respect to the 
staff's allegations cited herein, (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 Respondent failed to 
comply with the FHSA and the underlying regulations, (4) to a statement 
of findings of facts and conclusions of law, and (5) to any claims 
under the Equal Access of Justice Act.
    24. Upon provisions acceptance of this Agreement by the Commission, 
this Agreement 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). If the Commission does not receive any 
written request not to accept the Agreement within 15 days, the 
Agreement will be deemed finally accepted on the 16th day after the 
date it is published in the Federal Register.
    25. In settlement of the staff's allegations, Respondent agrees to 
comply with the attached Order incorporated herein by reference.
    26. Upon violation of the attached Order by Respondent, the 
Commission reserves the right to take appropriate legal action against 
Respondent for all violations listed in section II of this Agreement 
and for all violations occurring after the effective date of this 
Agreement and Respondent waives the statute of limitations.
    27. If the Commission finds that Respondent has introduced or 
caused the introduction into interstate commerce; and received in 
interstate commerce and delivered or proffered delivery thereof for pay 
or otherwise any banned or misbranded hazardous substances, Respondent 
will pay to the Commission upon demand a penalty in the amount of five 
(5) times the retail value of the product in question. This provision 
does not preclude the Commission from taking additional legal action 
including, but not limited to civil and/or criminal actions under 
sections 5 and 8 of the FHSA, 15 U.S.C. 1264 and 1267 and sections 20, 
21, and 22 of the CPSA, 15 U.S.C. 2069, 2070, and 2071.
    28. Respondent reserves its right to challenge the Commission's 
findings under paragraph 27 of this Agreement before the Commission and 
to have the court review whether the Commission acted arbitrary and 
capricious.
    29. The Commission may publicize the terms of this Agreement.
    30. Agreements, understandings, representations, or interpretations 
made outside of this Agreement may not be used to vary or to contradict 
its terms.
    31. This Agreement shall become effective upon issuance of the 
Final Order by the Commission.
    32. The provisions of this Agreement shall apply to Respondent and 
each of its successors and assigns.

    Dated: April 11, 2003.

TGH International Trading, Inc.

Teresa Chan,
President, TGH International, Inc., 421 South Wall Street, Los 
Angeles, CA 90013.
    Dated: April 11, 2003.

Consumer Product Safety Commission

Alan H. Schoem,
Assistant Executive Director, Office of Compliance, U.S. Consumer 
Product Safety Commission, Washington, DC 20207-0001.

Eric L. Stone,

[[Page 33108]]

Director, Legal Division, Office of Compliance, U.S. Consumer 
Product Safety Commission.

Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance, Washington, 
DC.

Order

    Upon consideration of the Consent Order Agreement entered into 
between Respondent TGH International Trading, Inc., and the staff of 
the Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Respondent; and it appearing 
that the Consent Order Agreement is in the public interest, it is 
ordered, that the Consent Agreement be and hereby is accepted and it is 
further ordered, that Respondent is prohibited from introducing or 
causing the introduction into interstate commerce; and receiving in 
interstate commerce and delivering or proffering delivery thereof for 
pay or otherwise
    (a) Any toy or other article intended for use by children under 
three years of age that presents a choking, aspiration, or ingestion 
hazard because of small parts as defined in 16 CFR part 1501 when 
tested in accordance with the standards published in 16 CFR 1501.4, 
1500.51, and 1500.52;
    (b) Any rattle that presents a choking hazard because the rattle 
penetrates the full depth of the cavity of the test fixture as 
published in 16 CFR 1510.4;
    (c) Any toy or other article intended for use by children who are 
at least three years old but less than six years old that fails to 
comply with the Labeling Requirements for Certain Toys and Games under 
section 24 of the FHSA, 15 U.S.C. 1278 and 16 CFR 1500.19; and
    (d) Any other products that do not comply with the requirements of 
the FHSA and the underlying regulations and it is
    Further ordered that a violation of this Order shall subject 
Respondent to legal action for all violations listed in section II of 
this Agreement and for all violations occurring after the effective 
date of this Agreement and it is
    Further ordered that a violation of this Order shall subject 
Respondent to a penalty in the amount of five (5) times the retail 
value of the banned or misbranded hazardous substance and to additional 
legal action under the Federal Hazardous Substances Act and the 
Consumer Product Safety Act.

    Provisionally accepted and Provisional Order issued on the 28th 
day of May, 2003.

    By order of the Commission.

Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.

[FR Doc. 03-13747 Filed 6-2-03; 8:45 am]
BILLING CODE 6355-01-M