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Jonway and Shenke Default Order and Final Decision

(Washington, DC - December 18, 2014) – The U.S. Environmental Protection Agency (EPA) today announced that two Texas-based companies Jonway Motorcycle (USA) Co., Ltd., and Shenke USA, Inc. and four manufacturers in China violated the Clean Air Act by importing and selling more than 11,000 motorcycles and all-terrain vehicles that did not conform to the specifications that the companies had certified to EPA. 

Jonway and Shenke 

On November 14, 2014, EPA’s Environmental Appeals Board (EAB) granted a motion by EPA’s Air Enforcement Division for default judgement against all respondents for all claims in an enforcement case against companies operating under the brand names “Jonway” and “Shenke”. This is a Clean Air Act mobile source case concerning approximately 11,000 noncompliant highway motorcycles and all-terrain vehicles (ATVs) manufactured by four manufacturers in China (Jonway Group Co., Ltd., Shanghai Shenke Motorcycle Co., Ltd., Zhejiang JMStar Shenke Motorcycle Co., Ltd., and Zhejiang Jonway Motorcycle Manufacturing Co., Ltd.) and imported and sold by their domestic affiliates in Texas (Jonway Motorcycle (USA) Co., Ltd. and Shenke USA, Inc.). Both the manufacturers and the importers are respondents.

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Respondents are or were affiliated and work or worked in concert to manufacture, certify, import, and distribute highway motorcycles and recreational vehicles. Evidence of certification, warranty, and labeling violations was obtained through inspections of imported vehicles at the Los Angeles/Long Beach Seaport and Nitro PowerSports, LLC in Carrollton, Texas.

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The default order and final decision issued by EPA resolves violations of sections 203 and 213 of the Clean Air Act, 42 U.S.C. §§ 7522 and 7547. In short, this matter regards the importation and sale of approximately 11,043 highway motorcycles and 226 recreational vehicles that were not covered by an EPA certificate of conformity, primarily because they had undersized catalysts, adjustable carburetors that were not described in the corresponding application for certification, were manufactured by a manufacturer different from the one specified in the corresponding application for certification, or were manufactured after the applicable certificate expired.  Respondents also imported and sold recreational vehicles without compliant warranties and labels. Last but not least, Jonway’s and Shenke’s response to a request for information under section 208 of the Act, 42 U.S.C. § 7542, was unjustifiably delayed and yielded evidence of violations of recordkeeping requirements of the Clean Air Act related to emission testing and certification. 

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Health and Environmental Effects

Highway motorcycles and recreational vehicles emit carbon monoxide, as well as hydrocarbons and nitrogen oxides that contribute to the formation of ground-level ozone.

  • Nitrogen Oxides – Nitrogen oxides can cause or contribute to a variety of health problems and adverse environmental impacts, such as ground-level ozone, acid rain, water quality deterioration, and visual impairment.  Affected populations include children and people with lung diseases such as asthma. Exposure to these conditions can cause damage to lung tissue for people who work or exercise outside.
  • Ground-level ozone – Ground-level ozone is formed by reactions involving HC and NOx in the presence of sunlight.  Breathing ozone can trigger a variety of health problems, including chest pain, coughing, throat irritation, and congestion.  It also can worsen bronchitis, emphysema, and asthma. Ground-level ozone damages vegetation and ecosystems as well.  In the United States, ozone is responsible for an estimated $500 million in reduced crop production each year.
  • Carbon Monoxide – Carbon monoxide is a colorless, odorless gas that is formed when carbon in fuel is not burned completely. It is a component of motor vehicle exhaust, which contributes about 56 percent of all carbon monoxide emissions nationwide. Carbon monoxide can cause harmful health effects by reducing oxygen delivery to the body's organs (like the heart and brain) and tissues.

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Civil Penalty

The EAB granted the requested relief of a civil penalty of $1,258,582.

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For more information, contact:

Evan Belser, Attorney Adviser
Air Enforcement Division
Office of Civil Enforcement
Office of Enforcement and Compliance Assurance
United States Environmental Protection Agency
1200 Pennsylvania Avenue
Washington, D.C. 20460
(202) 564-6850

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