Newcastle-based engineering company, Bradken, is being criticised for importing heavy-rail locomotives containing asbestos.
The carriages, imported from China, are currently quarantined at Rutherford, as Customs and Border Protection officials investigate the breach of a 10 year ban on the import of products containing asbestos.
While the two locomotives were declared "asbestos-free" by Chinese manufacturers, Bradken is being accused of failing to ensure the safety of its supply chain.
The company could face a fine of up to $850,000.