On March 31, 1997, the Office of the Chief Counsel issued an Order to Pingxiang Fireworks & Firecrackers Industries Corporation (Respondent), finding that Respondent had knowingly committed the following two violations of the Hazardous Materials Regulations (HMR), and assessing a penalty in the amount of $24,000, payable over 12 months: Violation 1. Offering for transportation in commerce a new explosive device which had not been examined and assigned a recommended shipping description and hazard class by Dr. W. S. Chang (formerly of the Bureau of Explosives) or the National Institute for Occupational Safety and Health (NIOSH) (formerly known as the Bureau of Mines) and classed and approved by the Associate Administrator for Hazardous Materials Safety, or examined, classed and approved by any of the other agencies specified in 49 C.F.R. § 173.54(a), and thus was forbidden for transportation. 2. Offering for transportation in commerce an explosive, Fireworks 1.3G, which was improperly classed as Fireworks 1.4G. The Order modified the $30,100 civil penalty originally proposed in the February 3, 1997 Notice of Probable Violation (Notice). By letter dated May 28, 1997, Respondent submitted a timely appeal of the Order. It was determined that there is sufficient information to warrant mitigation of the civil penalty assessed in the Chief Counsel’s Order. The order assessed that an $18,000 civil penalty was appropriate. The Chief Counsel’s March 31, 1997 Order is affirmed, and the appeal is denied.