“Lucky Trading Co., Ltd (Respondent) imported the engines described at the bottom of Table 2 (the Subject Engines) on or about August 13, 2024. Authorized federal inspectors examined the Subject Engines and determined that they are uncertified and are not covered by an applicable Certificate of Conformity (COC).”

💡 EPA explicitly found the engines had no valid certification to be imported or sold

“Respondent provided a COC that does not apply to the Subject Engines; the COC for the claimed engine family presented is for materially different engines. The COC the Importer presented is for an engine with a displacement of 63.3cc, while the packaging label for the Subject Engines refer to an engine with a displacement of 100cc.”

💡 The company deliberately misrepresented the engines by providing paperwork for a completely different product

“CBP did not observe any Emissions Control Information label affixed to the Subject Engines.”

💡 Federal law requires visible emissions labels on all certified engines to protect consumers and the environment

“The importer also did not provide a completed EPA Form 3520-21 when requested by CBP.”

💡 Lucky Trading refused to submit mandatory declaration forms that would have disclosed the engines’ noncompliance

“EPA searched the EV-CIS database and did not find any applicable certifications held by the importer or manufacturer for the Subject Engines. Based on the above facts, EPA determined that the Subject Engines are not covered by a valid COC and are not certified.”

💡 EPA confirmed through its official database that no legal authorization ever existed for these engines

“Accordingly, by importing the Subject Engines, Respondent has committed eighty-three (83) violations of CAA Sections 203(a)(1) and 213(d), 42 U.S.C. §§ 7522(a)(1) and 7547(d), and the regulations codified at 40 C.F.R. § 1068.101(a)(1) and (b)(5).”

💡 EPA formally determined Lucky Trading violated multiple provisions of federal environmental law

“You may resolve these violations using an expedited settlement process that involves significantly lower penalties than those sought through the regular enforcement process.”

💡 EPA explicitly offers discounted penalties through expedited settlement, reducing deterrent effect

“If you do not sign and return the enclosed Agreement as presented within thirty (30) calendar days of its receipt, and meet all of your obligations under the Agreement, then the proposed Agreement will be withdrawn, with no need of additional notice to you, and without prejudice to the EPA’s ability to file any other enforcement action for the violation(s) identified in the Agreement and seek penalties of up to $59,114 per violation pursuant to Section 205(a) of the CAA.”

💡 Federal law allows up to $59,114 per violation but Lucky Trading paid only $32 per violation

“Respondent admits to being subject to the Clean Air Act (CAA) and its associated regulations and that the United States Environmental Protection Agency (EPA) has jurisdiction over the Respondent and the Respondent’s conduct described in Table 2. Respondent neither admits nor denies the findings detailed therein and waives any objections Respondent may have to the EPA’s jurisdiction.”

💡 Settlement allows Lucky Trading to avoid admitting the violations while still resolving the case

“After the Agreement becomes effective, the EPA will take no further civil penalty action against your company for the violation(s) described in the Agreement. However, the EPA does not waive any rights to take an enforcement action for any other past, present, or future violations of the CAA or of any other federal statute or regulation.”

💡 EPA closes the case after payment without ongoing oversight or enhanced monitoring

“In addition to paying the monetary penalty, Respondent must provide to the EPA documentation showing that the Subject Engines have been destroyed, exported to a country other than Canada or Mexico, or are under exclusive control by U.S. Customs and Border Protection (CBP) pending exportation or destruction.”

💡 EPA requires engines be removed from commerce but does not address past environmental harm

“Respondent certifies that payment of the penalty has been made in the amount of two thousand six hundred and eighty-one dollars ($2,681).”

💡 The total penalty for 83 violations was less than $3,000, making noncompliance financially attractive

“An authorized representative of the United States federal government conducted an inspection to determine your company’s compliance with the Clean Air Act (CAA) and regulations promulgated thereunder. The details of this inspection are outlined in the enclosed Clean Air Act Vehicle and Engine Expedited Settlement Agreement (Agreement). As a result of the inspection, it was determined that your company failed to comply with the CAA and the associated regulations.”

💡 EPA formally notified Lucky Trading that federal inspection found the company in violation of environmental law

“Upon signing and returning this Agreement to the EPA, Respondent consents to the terms of this Agreement without further notice. Respondent acknowledges that this Agreement is binding on the parties signing below and becomes effective on the date of the EPA Delegated Official’s ratifying signature.”

💡 Settlement became legally binding when EPA ratified it on September 30, 2025

“Please contact Richard Kan at (212) 637-4017 or Kan.Richard@epa.gov with any questions.”

💡 EPA provided direct enforcement contact for case resolution