81 FR 7584 - Certain Stainless Steel Products, Certain Processes for Manufacturing or Relating to Same, and Certain Products Containing Same; Notice of Commission Determination To Review an Initial Determination Granting in Part a Motion for Default and Other Relief and, on Review, To Affirm the Default Finding; Schedule for Filing Written Submissions on the Issues Under Review and on Remedy, Public Interest, and Bonding

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 81, Issue 29 (February 12, 2016)

Page Range		7584-7585
FR Document		2016-02869

Notice is hereby given that the U.S. International Trade Commission has determined to review an initial determination (``ID'') (Order No. 17) by the presiding administrative law judge (``ALJ'') finding Viraj Profiles Limited (``Viraj'') in default for spoliation of evidence and ordering the disgorgement of complainants' operating practices in Viraj's possession. On review, the Commission has determined to affirm the default finding as to Viraj. The Commission requests certain briefing from the parties on the remaining issues under review, as indicated in this notice. The Commission also requests briefing from the parties and interested persons on the issues of remedy, the public interest, and bonding.

Federal Register, Volume 81 Issue 29 (Friday, February 12, 2016)

[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Notices]
[Pages 7584-7585]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-02869]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-933]

Certain Stainless Steel Products, Certain Processes for
Manufacturing or Relating to Same, and Certain Products Containing
Same; Notice of Commission Determination To Review an Initial
Determination Granting in Part a Motion for Default and Other Relief
and, on Review, To Affirm the Default Finding; Schedule for Filing
Written Submissions on the Issues Under Review and on Remedy, Public
Interest, and Bonding

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade
Commission has determined to review an initial determination (``ID'')
(Order No. 17) by the presiding administrative law judge (``ALJ'')
finding Viraj Profiles Limited (``Viraj'') in default for spoliation of
evidence and ordering the disgorgement of complainants' operating
practices in Viraj's possession. On review, the Commission has
determined to affirm the default finding as to Viraj. The Commission
requests certain briefing from the parties on the remaining issues
under review, as indicated in this notice. The Commission also requests
briefing from the parties and interested persons on the issues of
remedy, the public interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Lucy Grace D. Noyola, Office of the
General Counsel, U.S. International Trade Commission, 500 E Street SW.,
Washington, DC 20436, telephone 202-205-3438. Copies of non-
confidential documents filed in connection with this investigation are
or will be available for inspection during official business hours
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S.
International Trade Commission, 500 E Street SW., Washington, DC 20436,
telephone 202-205-2000. General information concerning the Commission
may also be obtained by accessing its Internet server (http://www.usitc.gov). The public record for this investigation may be viewed
on the Commission's electronic docket (EDIS) at http://edis.usitc.gov.
Hearing-impaired persons are advised that information on this matter
can be obtained by contacting the Commission's TDD terminal on 202-205-
1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation
on October 10, 2014, based on a complaint filed by Valbruna Slater
Stainless, Inc. of Fort Wayne, Indiana; Valbruna Stainless Inc., of
Fort Wayne, Indiana; and Acciaierie Valbruna S.p.A. of Italy
(collectively, ``Valbruna''). 79 FR 61339 (Oct. 10, 2014). The
complaint alleges violations of section 337 of the Tariff Act of 1930,
as amended, 19 U.S.C. 1337, in the importation into the United States,
the sale for importation, and the sale within the United States after
importation of certain stainless steel products, certain processes for
manufacturing or relating to same, and certain products containing same
by reason of the misappropriation of trade secrets, the threat or
effect of which is to destroy or substantially injure an industry in
the United States. Id. The notice of investigation names as respondents
Viraj Profiles Limited of Mumbai, India; Viraj Holdings P. Ltd. of
Mumbai, India; Viraj--U.S.A., Inc. of Garden City, New York;
Flanschenwerk Bebitz GmbH of K[ouml]nnern, Germany; Bebitz Flanges
Works Pvt. Ltd. of Maharashtra, India; Bebitz U.S.A. of Garden City,
New York; and Ta Chen Stainless Pipe Co., Ltd. of Tainan, Taiwan and Ta
Chen International, Inc. of Long Beach, California (``Ta Chen''). Id.
The Office of Unfair Import Investigations (``OUII'') also was named as
a party to the investigation. Id.
On September 8, 2015, Valbruna filed a motion for default and other
relief for Viraj's failure to make and cooperate in discovery,
intentional concealment and failure to preserve dispositive evidence,
and misrepresentations to Valbruna and the Commission. On September 17,
2015, OUII filed a response in support of Valbruna's motion. On
September 18, 2015, Viraj filed a response opposing the motion.
On December 8, 2015, the ALJ issued the subject ID (Order No. 17),
granting in part Valbruna's motion for default and other relief. The
ALJ found that Viraj acted in bad faith in spoliating evidence and that
a sanction of default against Viraj was warranted. The ALJ also ordered
Viraj to disgorge any Valbruna operating practices in its possession.
The ALJ denied Valbruna's request to assert certain operating practices
that the ALJ had previously excluded.
On December 16, 2015, Viraj filed a petition for review. Ta Chen
also filed a petition for review, arguing that it is entitled to an
evidentiary hearing. On December 23, 2015, Valbruna and OUII each filed
responses to both petitions. Valbruna's response included a request for
immediate entry of relief against Viraj.
Having examined the record of this investigation, including the ID,
the petitions for review, and the responses thereto, the Commission has
determined to review the ID. Specifically, the Commission has
determined to review the ID's finding of default for spoliation of
evidence as to Viraj and the ID's order that Viraj disgorge any
Valbruna operating practices in its possession. On review, the
Commission affirms the default finding, with supplemental reasoning
described in a forthcoming opinion. The Commission clarifies that the
default finding against Viraj does not preclude the remaining
respondents from participating in an evidentiary hearing and contesting
the allegations at issue in the investigation. The Commission expects
the stay of the procedural schedule to be lifted.
In connection with its review, the Commission requests responses to
the following questions only. The parties are requested to brief their
positions with reference to the applicable law and the existing
evidentiary record.
1. Please provide an analysis of the Commission's authority to (1)
order Viraj to disgorge any Valbruna operating practices in its
possession as a sanction for spoliation of evidence and (2) enforce
such an order. Discuss the Commission's jurisdiction to order
disgorgement by a foreign entity.
2. Please discuss whether the circumstances here provide the
grounds for the issuance of immediate entry of relief against Viraj
under Commission Rule 210.16(c).
In connection with the final disposition of Order No. 17, the
Commission may determine that immediate relief against Viraj is
warranted. If so, the Commission may (1) issue an order that could
result in the exclusion of the subject articles from entry into the
United States, and/or (2) issue a cease and desist order that could
result in Viraj being required to cease and desist from engaging in
unfair acts in the importation and sale of such articles. Accordingly,
the Commission is interested in receiving written submissions that
address the form of remedy, if any, that should be ordered.

[[Page 7585]]

Please include in the submission a discussion of the appropriate
duration of the remedy, if any, supported by the factual record. If a
party seeks exclusion of an article from entry into the United States
for purposes other than entry for consumption, the party should so
indicate and provide information establishing that activities involving
other types of entry either are adversely affecting it or likely to do
so. For background, see Certain Devices for Connecting Computers via
Telephone Lines, Inv. No. 337-TA-360, USITC Pub. No. 2843 (Dec. 1994)
(Commission Opinion).
If the Commission contemplates some form of remedy, it must
consider the effects of that remedy upon the public interest. The
factors the Commission will consider include the effect that an
exclusion order and/or cease and desist orders would have on (1) the
public health and welfare, (2) competitive conditions in the U.S.
economy, (3) U.S. production of articles that are like or directly
competitive with those that are subject to investigation, and (4) U.S.
consumers. The Commission is therefore interested in receiving written
submissions that address the aforementioned public interest factors in
the context of this investigation.
If the Commission orders some form of remedy, the U.S. Trade
Representative, as delegated by the President, has 60 days to approve
or disapprove the Commission's action. See Presidential Memorandum of
July 21, 2005, 70 FR 43251 (July 26, 2005). During this period, the
subject articles would be entitled to enter the United States under
bond, in an amount determined by the Commission and prescribed by the
Secretary of the Treasury. The Commission is therefore interested in
receiving submissions concerning the amount of the bond that should be
imposed if a remedy is ordered.
Written Submissions: Parties to the investigation, interested
government agencies, and any other interested parties are encouraged to
file written submissions on the issues of remedy, the public interest,
and bonding. Complainants are requested to submit proposed remedial
orders for the Commission's consideration. Complainants are also
requested to state the HTSUS numbers under which the accused products
are imported, and provide identification information for all known
importers of the subject articles. Initial written submissions and
proposed remedial orders must be filed no later than close of business
on Thursday, February 18, 2016. Initial written submissions by the
parties shall be no more than 40 pages, excluding any attachments or
exhibits. Reply submissions must be filed no later than the close of
business on Thursday, February 25, 2016. Reply submissions by the
parties shall be no more than 25 pages, excluding any attachments or
exhibits. No further submissions on these issues will be permitted
unless otherwise ordered by the Commission. Persons filing written
submissions must file the original document electronically on or before
the deadlines stated above and submit 8 true paper copies to the Office
of the Secretary by noon the next day pursuant to section 210.4(f) of
the Commission's Rules of Practice and Procedure (19 CFR 210.4(f)).
Submissions should refer to the investigation number (``Inv. No. 337-
TA-933'') in a prominent place on the cover page and/or the first page.
(See Handbook for Electronic Filing Procedures, http://www.usitc.gov/secretary/fed_reg_notices/rules/handbook_on_electronic_filing.pdf).
Persons with questions regarding filing should contact the
Secretary at (202) 205-2000. Any person desiring to submit a document
to the Commission in confidence must request confidential treatment.
All such requests should be directed to the Secretary to the Commission
and must include a full statement of the reasons why the Commission
should grant such treatment. See 19 CFR 201.6. Documents for which
confidential treatment by the Commission is properly sought will be
treated accordingly. A redacted non-confidential version of the
document must also be filed simultaneously with any confidential
filing. All nonconfidential written submissions will be available for
public inspection at the Office of the Secretary and on EDIS.
The authority for the Commission's determination is contained in
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and
in part 210 of the Commission's Rules of Practice and Procedure (19 CFR
part 210).

By order of the Commission.

Issued: February 8, 2016.
William R. Bishop,
Supervisory Hearings and Information Officer.
[FR Doc. 2016-02869 Filed 2-11-16; 8:45 am]
BILLING CODE 7020-02-P

7584 Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices

Tribe and the State of South Dakota information concerning the Commission possession. The ALJ denied Valbruna’s
have reached an agreement to extend may also be obtained by accessing its request to assert certain operating
the expiration of their existing Tribal- Internet server (http://www.usitc.gov). practices that the ALJ had previously
State Class III gaming compact until The public record for this investigation excluded.
June 23, 2016. This publishes notice of may be viewed on the Commission’s On December 16, 2015, Viraj filed a
the new expiration date of the compact. electronic docket (EDIS) at http:// petition for review. Ta Chen also filed
Dated: February 3, 2016. edis.usitc.gov. Hearing-impaired a petition for review, arguing that it is
persons are advised that information on entitled to an evidentiary hearing. On
Lawrence R. Roberts,
this matter can be obtained by December 23, 2015, Valbruna and OUII
Acting Assistant Secretary—Indian Affairs.
contacting the Commission’s TDD each filed responses to both petitions.
[FR Doc. 2016–02917 Filed 2–11–16; 8:45 am] Valbruna’s response included a request
terminal on 202–205–1810.
BILLING CODE 4337–15–P for immediate entry of relief against
SUPPLEMENTARY INFORMATION: The
Commission instituted this investigation Viraj.
Having examined the record of this
INTERNATIONAL TRADE on October 10, 2014, based on a
investigation, including the ID, the
COMMISSION complaint filed by Valbruna Slater
petitions for review, and the responses
Stainless, Inc. of Fort Wayne, Indiana;
[Investigation No. 337–TA–933] thereto, the Commission has determined
Valbruna Stainless Inc., of Fort Wayne,
to review the ID. Specifically, the
Indiana; and Acciaierie Valbruna S.p.A.
Certain Stainless Steel Products, Commission has determined to review
of Italy (collectively, ‘‘Valbruna’’). 79 FR
Certain Processes for Manufacturing the ID’s finding of default for spoliation
61339 (Oct. 10, 2014). The complaint
or Relating to Same, and Certain of evidence as to Viraj and the ID’s order
alleges violations of section 337 of the that Viraj disgorge any Valbruna
Products Containing Same; Notice of Tariff Act of 1930, as amended, 19
Commission Determination To Review operating practices in its possession. On
U.S.C. 1337, in the importation into the review, the Commission affirms the
an Initial Determination Granting in United States, the sale for importation,
Part a Motion for Default and Other default finding, with supplemental
and the sale within the United States reasoning described in a forthcoming
Relief and, on Review, To Affirm the after importation of certain stainless
Default Finding; Schedule for Filing opinion. The Commission clarifies that
steel products, certain processes for the default finding against Viraj does
Written Submissions on the Issues manufacturing or relating to same, and
Under Review and on Remedy, Public not preclude the remaining respondents
certain products containing same by from participating in an evidentiary
Interest, and Bonding reason of the misappropriation of trade hearing and contesting the allegations at
AGENCY: U.S. International Trade secrets, the threat or effect of which is issue in the investigation. The
Commission. to destroy or substantially injure an Commission expects the stay of the
ACTION: Notice. industry in the United States. Id. The procedural schedule to be lifted.
notice of investigation names as In connection with its review, the
SUMMARY: Notice is hereby given that respondents Viraj Profiles Limited of Commission requests responses to the
the U.S. International Trade Mumbai, India; Viraj Holdings P. Ltd. of following questions only. The parties
Commission has determined to review Mumbai, India; Viraj—U.S.A., Inc. of are requested to brief their positions
an initial determination (‘‘ID’’) (Order Garden City, New York; Flanschenwerk with reference to the applicable law and
No. 17) by the presiding administrative Bebitz GmbH of Könnern, Germany; the existing evidentiary record.
law judge (‘‘ALJ’’) finding Viraj Profiles Bebitz Flanges Works Pvt. Ltd. of 1. Please provide an analysis of the
Limited (‘‘Viraj’’) in default for Maharashtra, India; Bebitz U.S.A. of Commission’s authority to (1) order
spoliation of evidence and ordering the Garden City, New York; and Ta Chen Viraj to disgorge any Valbruna operating
disgorgement of complainants’ Stainless Pipe Co., Ltd. of Tainan, practices in its possession as a sanction
operating practices in Viraj’s possession. Taiwan and Ta Chen International, Inc. for spoliation of evidence and (2)
On review, the Commission has of Long Beach, California (‘‘Ta Chen’’). enforce such an order. Discuss the
determined to affirm the default finding Id. The Office of Unfair Import Commission’s jurisdiction to order
as to Viraj. The Commission requests Investigations (‘‘OUII’’) also was named disgorgement by a foreign entity.
certain briefing from the parties on the as a party to the investigation. Id. 2. Please discuss whether the
remaining issues under review, as On September 8, 2015, Valbruna filed circumstances here provide the grounds
indicated in this notice. The a motion for default and other relief for for the issuance of immediate entry of
Commission also requests briefing from Viraj’s failure to make and cooperate in relief against Viraj under Commission
the parties and interested persons on the discovery, intentional concealment and Rule 210.16(c).
issues of remedy, the public interest, failure to preserve dispositive evidence, In connection with the final
and bonding. and misrepresentations to Valbruna and disposition of Order No. 17, the
FOR FURTHER INFORMATION CONTACT: the Commission. On September 17, Commission may determine that
Lucy Grace D. Noyola, Office of the 2015, OUII filed a response in support immediate relief against Viraj is
General Counsel, U.S. International of Valbruna’s motion. On September 18, warranted. If so, the Commission may
Trade Commission, 500 E Street SW., 2015, Viraj filed a response opposing (1) issue an order that could result in
Washington, DC 20436, telephone 202– the motion. the exclusion of the subject articles from
asabaliauskas on DSK9F6TC42PROD with NOTICES2

205–3438. Copies of non-confidential On December 8, 2015, the ALJ issued entry into the United States, and/or (2)
documents filed in connection with this the subject ID (Order No. 17), granting issue a cease and desist order that could
investigation are or will be available for in part Valbruna’s motion for default result in Viraj being required to cease
inspection during official business and other relief. The ALJ found that and desist from engaging in unfair acts
hours (8:45 a.m. to 5:15 p.m.) in the Viraj acted in bad faith in spoliating in the importation and sale of such
Office of the Secretary, U.S. evidence and that a sanction of default articles. Accordingly, the Commission is
International Trade Commission, 500 E against Viraj was warranted. The ALJ interested in receiving written
Street SW., Washington, DC 20436, also ordered Viraj to disgorge any submissions that address the form of
telephone 202–205–2000. General Valbruna operating practices in its remedy, if any, that should be ordered.

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Document Created: 2016-02-12 01:23:59
Document Modified: 2016-02-12 01:23:59

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Contact		Lucy Grace D. Noyola, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone 202-205-3438. Copies of non- confidential documents filed in connection with this investigation are or will be available for inspection during official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone 202-205-2000. General information concerning the Commission may also be obtained by accessing its Internet server (http:// www.usitc.gov). The public record for this investigation may be viewed on the Commission's electronic docket (EDIS) at http://edis.usitc.gov. Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on 202-205- 1810.
FR Citation		81 FR 7584