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)

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, 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