82 FR 33156 - Certain Hand Dryers and Housings for Hand Dryers; Commission Determination To Review In-Part an Initial Determination Granting Complainant's Motion for Summary Determination of Section 337 Violation by the Defaulting Respondents

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 82, Issue 137 (July 19, 2017)

Notice is hereby given that the U.S. International Trade Commission has determined to review in-part an initial determination (``ID'') (Order No. 27) of the presiding administrative law judge (``ALJ'') granting Complainant's motion for summary determination of section 337 violation by Defaulting Respondents. Specifically, the Commission has determined to review the ID's analysis and findings with respect to the existence of a domestic industry. The Commission also requests written submissions, under the schedule set forth below, on remedy, the public interest, and bonding.

[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)]
[Notices]
[Pages 33156-33158]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15137]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1015]


Certain Hand Dryers and Housings for Hand Dryers; Commission 
Determination To Review In-Part an Initial Determination Granting 
Complainant's Motion for Summary Determination of Section 337 Violation 
by the Defaulting Respondents

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 in-part an initial determination 
(``ID'') (Order No. 27) of the presiding administrative law judge 
(``ALJ'') granting Complainant's motion for summary determination of 
section 337 violation by Defaulting Respondents. Specifically, the 
Commission has determined to review the ID's analysis and findings with 
respect to the existence of a domestic industry. The Commission also 
requests written submissions, under the schedule set forth below, on 
remedy, the public interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Houda Morad, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 708-4716. 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 at https://www.usitc.gov. The public record for this investigation may be viewed 
on the Commission's electronic docket (EDIS) at https://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 August 1, 2016, based on a complaint filed by Complainant Excel 
Dryer, Inc. of East Longmeadow, Massachusetts, alleging a violation of 
section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337 
(``section 337''), based upon the importation into the United States, 
or in the sale of certain hand dryers and housings for hand dryers by 
reason of trade dress infringement, the threat or effect of which is to 
destroy or substantially injure an industry in the United States. See 
81 FR 50549-50 (Aug. 1, 2016). The notice of investigation identified 
twelve respondents, namely: ACL Group (Intl.) Ltd. of Skelbrooke, 
United Kingdom (``ACL''); Alpine Industries Inc. of Irvington, New 
Jersey (``Alpine''); FactoryDirectSale of Ontario, California; Fujian 
Oryth Industrial Co., Ltd. (a/k/a Oryth) of Fujian, China (``Oryth''); 
Jinhua Kingwe Electrical Co. Ltd., (a/k/a Kingwe) of Jinhua City, China 
(``Kingwe''); Penson & Co. of Shanghai, China (``Penson''); Taizhou 
Dihour Electrical Appliances Co., Ltd., a/k/a

[[Page 33157]]

Dihour of Wenling City, China (``Dihour''); TC Bunny Co., Ltd. of 
Shanghai, China (``TC Bunny''); Toolsempire of Ontario, California; US 
Air Hand Dryer of Sacramento, California (``US Air''); Sovereign 
Industrial (Jiaxing) Co. Ltd. d/b/a Vinovo of Jiaxing, China 
(``Vinovo''); and Zhejiang Aike Appliance Co., Ltd. of Zhejiang, China 
(``Aike''). See id. In addition, the Office of Unfair Import 
Investigations is a party in this investigation. See id.
    The ALJ terminated six respondents from the investigation based on 
consent order stipulations and the entry of consent orders, namely: 
Respondent Alpine (Order No. 11 (Sept. 8, 2016), unreviewed, Comm'n 
Notice (Oct. 11, 2016)); Respondent Kingwe (Order No. 12 (Sept. 8, 
2016), unreviewed, Comm'n Notice (Oct. 11, 2016)); Respondent ACL 
(Order No. 15 (Sept. 28, 2016), unreviewed, Comm'n Notice (Oct. 27, 
2016)); Respondent Aike (Order No. 16 (Oct. 4, 2016), unreviewed, 
Comm'n Notice (Nov. 3, 2016)); Respondent Toolsempire (Order No. 18 
(Oct. 11, 2016) unreviewed, Comm'n Notice (Nov. 14, 2016)); and 
Respondent FactoryDirectSale (Order No. 19 (Oct. 11, 2016), unreviewed, 
Comm'n Notice (Nov. 14, 2016)). The ALJ found the six remaining 
respondents in default (collectively, ``the Defaulting Respondents'') 
based on their failure to respond to the complaint and notice of 
investigation, namely: Respondents Penson and Dihour (Order No. 21 
(Oct. 31, 2016), unreviewed, Comm'n Notice (Nov. 28, 2016)); and 
Respondents US Air, Oryth, TC Bunny, and Vinovo (Order No. 24 (Feb. 2, 
2017), unreviewed, Comm'n Notice (Feb. 22, 2017)).
    On March 24, 2017, Complainant Excel filed a motion for summary 
determination on domestic industry and violation of section 337 by the 
Defaulting Respondents. Complainant Excel also requested a general 
exclusion order, cease and desist orders, and a bond of 100% during 
Presidential review. On April 5, 2017, the Commission Investigative 
Attorney filed a response in support of Complainant's Motion and 
requested remedy. On June 2, 2017, the ALJ issued the subject ID/RD 
(Order No. 27) granting Complainant's motion for summary determination 
on domestic industry and violation of section 337 by the Defaulting 
Respondents and recommending that the Commission issue a general 
exclusion order and cease and desist orders, and set a bond at 100% 
during the Presidential review period. No petitions for review of the 
subject ID were filed.
    The Commission has determined to review the ID in-part. 
Specifically, the Commission has determined to review the ID's analysis 
and findings with respect to the existence of a domestic industry. The 
Commission does not request any submissions on the issue under review.
    In connection with the final disposition of this investigation, 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 one or more cease and desist orders that could result in the 
respondent(s) 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. 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) 
(Comm'n Op.). In particular, the written submissions should address any 
request for a cease and desist order in the context of recent 
Commission opinions, including those in Certain Arrowheads with 
Deploying Blades and Components Thereof and Packaging Therefor, Inv. 
No. 337-TA-977, Comm'n Op. (Apr. 28, 2017) and Certain Electric Skin 
Care Devices, Brushes and Chargers Therefor, and Kits Containing the 
Same, Inv. No. 337-TA-959, Comm'n Op. (Feb. 13, 2017). Specifically, if 
Complainant seeks a cease and desist order against a defaulting 
respondent, the written submissions should respond to the following 
requests:
    (1) Please identify with citations to the record any information 
regarding commercially significant inventory in the United States as to 
each respondent against whom a cease and desist order is sought. If 
Complainant also relies on other significant domestic operations that 
could undercut the remedy provided by an exclusion order, please 
identify with citations to the record such information as to each 
respondent against whom a cease and desist order is sought.
    (2) In relation to the infringing products, please identify any 
information in the record, including allegations in the pleadings, that 
addresses the existence of any domestic inventory, any domestic 
operations, or any sales-related activity directed at the United States 
for each respondent against whom a cease and desist order is sought.
    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. Complainant and the Commission investigative attorney are 
also requested to submit proposed remedial orders for the Commission's 
consideration. Complainant is also requested to state the HTSUS numbers 
under which the accused products are imported and to supply the names 
of known importers of the infringing articles.
    Written submissions must be filed no later than close of business 
on July 28, 2017. Reply submissions must be filed no later than the 
close of business on August 4, 2017. Such submissions should address 
the ALJ's recommended determinations on remedy and bonding which were 
made in Order No. 27. No further submissions on any of 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

[[Page 33158]]

stated above and submit eight (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-1015'') in a prominent place on the cover page and/or the first 
page. (See Handbook for Electronic Filing Procedures, https://www.usitc.gov/secretary/documents/handbook_on_filing_procedures.pdf). 
Persons with questions regarding filing should contact the Secretary 
(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. All 
information, including confidential business information and documents 
for which confidential treatment is properly sought, submitted to the 
Commission for purposes of this Investigation may be disclosed to and 
used: (i) By the Commission, its employees and Offices, and contract 
personnel (a) for developing or maintaining the records of this or a 
related proceeding, or (b) in internal investigations, audits, reviews, 
and evaluations relating to the programs, personnel, and operations of 
the Commission including under 5 U.S.C. Appendix 3; or (ii) by U.S. 
government employees and contract personnel,\1\ solely for 
cybersecurity purposes. All non-confidential written submissions will 
be available for public inspection at the Office of the Secretary and 
on EDIS.
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    \1\ All contract personnel will sign appropriate nondisclosure 
agreements.
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    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 July 14, 2017.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2017-15137 Filed 7-18-17; 8:45 am]
 BILLING CODE 7020-02-P