The First Enforcement Action Taken By EPA For Violations Of The Formaldehyde Regulations Date: ​ August 29, 2019

Last week the Environmental Appeals Board of EPA approved a settlement resolving violations of the Formaldehyde Standards for Composite Wood Products Act of 2010 and its implementing Formaldehyde Rule (effective June 1, 2018). 

The enforcement action, the first the agency has taken for its formaldehyde emissions regulations, comes with respect to a New Jersey company that imported cabinets that do not comply with the agency’s standards. 

According to the settlement, the New Jersey company, a construction products procurement company, allegedly violated these requirements when it imported finished cabinets with components fabricated in compliance with EU standards that failed to meet US requirements. 

The company has agreed to "take corrective actions to come into compliance" and will pay a civil penalty of $544,064.


Background
Beginning June 1, 2018, only certified composite wood products, whether in the form of panels or incorporated into component parts or finished goods, are permitted to be sold, supplied, offered for sale, or manufactured (including imported) in the United States, unless the product is specifically exempted by this part.

According to the settlement agreement, the New Jersey company contracted a Turkish company in 2018 to fabricate a variety of cabinets in compliance with EU standards, including for formaldehyde content. 

On 29 March this year, it received a request from its import broker to complete a TSCA section 13 import certification with respect to a shipment of finished goods delivered to a South Carolina port.

The company "immediately investigated the reason for the import certification requirement and discovered the existence of Part 770 [the TSCA formaldehyde regulations] and its applicability to the finished goods".

On April 5, 2019, it submitted a voluntary disclosure via EPA's eDisclosure System notifying the EPA of potential noncompliance with regulatory requirements under TSCA Subchapter VI -Formaldehyde Standards for Composite Wood.

However, the New Jersey company imported composite wood products for installation at an apartment building. It is an "importer" under the definitions found in 40 C.F.R.§ 770.3 and, as such, is subject to TSCA, 15 U.S.C. § 2601 et seq. and the regulations promulgated thereunder.

In total, the EPA alleges the company violated TSCA with respect to eight separate entries, comprising 42 violations of the law. These include failures to maintain appropriate records and labels, and a failure to comply with import certification requirements.
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