[Federal Register Volume 65, Number 171 (Friday, September 1, 2000)]
[Notices]
[Pages 53334-53335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22438]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-424]


In the Matter of Certain Cigarettes and Packing Thereof; Notice 
of Commission Determination Not To Review an Initial Determination; 
Schedule for the Filing of Written Submission on Remedy, the 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 not to review an initial determination 
(``ID'') issued by the presiding administrative law judge (``ALJ'') on 
June 22, 2000.

FOR FURTHER INFORMATION CONTACT: Shara L. Aranoff, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
S.W., Washington, D.C. 20436, telephone 202-205-3090, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: The Commission instituted this trademark-
based investigation on September 16, 1999, based on a complaint filed 
by Brown & Williamson Tobacco Corp. (``complainant'') alleging unfair 
acts in violation of section 337 of the Tariff Act of 1930 (19 U.S.C. 
1337) in the importation, sale for importation, and/or sale within the 
United States after importation of certain cigarettes and packaging 
thereof, by reason of (a) infringement of 11 federally registered U.S. 
trademarks; (b) trademark dilution; (c) false representation of source; 
and (d) false advertising. The Commission's notice of investigation 
named Allstate Cigarette Distributors, Inc. (``Allstate''), Dood 
Enterprises, Inc. (``Dood''), Prestige Storage and Distribution, Inc. 
(``Prestige''), and R.E. Tobacco Sales, Inc. (``R.E. Tobacco'') as 
respondents.
    On December 15, 1999, the Commission determined not to review an ID 
(Order No. 15) granting the motion of PTI, Inc., doing business as 
Ampac Trading (``PTI'' or ``intervenor''), to intervene in this 
investigation. On February 22, 2000, the Commission determined to 
review and affirm an ID (Order No. 30) granting the motion of 
respondent Allstate to terminate the investigation as to it based on a 
consent order. On March 24, 2000, the Commission determined not to 
review two IDs (Orders Nos. 60 and 61) granting the motions of 
respondents Prestige and R.E. Tobacco to terminate the investigation as 
to them based on consent orders. On March 24, 2000, the Commission 
determined not to review an ID (Order No. 59) granting complainant's 
motion for partial summary determination that a domestic industry 
exists with respect to complainant's trademarks. On April 27, 2000, the 
Commission determined not to review an ID (Order No. 68) granting the 
motion of respondent Dood to terminate the investigation as to it based 
on a consent order.
    The ALJ held an evidentiary hearing on the merits beginning on 
March 20, 2000, and issued her final ID finding a violation of section 
337 on June 22, 2000. She found that there had been imports of the 
accused products by intervenor PTI; that PTI's importation and sale of 
the accused cigarettes infringed complainant's trademarks; that PTI's 
importation and sale of accused cigarettes diluted complainant's 
trademarks; that PTI's importation and sale of accused cigarettes 
constituted a false designation of source; that complainant had failed 
to demonstrate that PTI engaged in false advertising with respect to 
the accused cigarettes; that PTI's trademark dilution and false 
designation of source had the threat or effect of substantially 
injuring the domestic industry; and that PTI was not denied due process 
in proceedings before the ALJ in this investigation.
    Intervenor PTI filed a petition for review of the final ID, and 
complainants and the Commission investigative attorney filed responses 
to the petition.
    On June 27, 2000, the Commission determined to extend the date by 
which it must make its determination whether to review the instant ID 
to August 28, 2000, and to extend the target date in this investigation 
to October 16, 2000.
    Having examined the record in this investigation, including the ID, 
the Commission has determined not to review the ID.

[[Page 53335]]

    In connection with final disposition of this investigation, the 
Commission may issue (1) an order that could result in the exclusion of 
the subject articles from entry into the United States, and/or (2) a 
cease and desist order that could result in intervenor 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 are likely to do so. For background, see the 
Commission Opinion In the Matter of Certain Devices for Connecting 
Computers via Telephone Lines, Inv. No. 337-TA-360.
    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 order 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 President has 60 
days to approve or disapprove the Commission's action. During this 
period, the subject articles would be entitled to enter the United 
States under a 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.
    Written Submissions: The parties to the investigation, interested 
government agencies, and any other interested persons are encouraged to 
file written submissions on the issues of remedy, the public interest, 
and bonding. Such submissions should address the June 22, 2000, 
recommended determination by the ALJ on remedy and bonding. Complainant 
and the Commission investigative attorney are also requested to submit 
proposed remedial orders for the Commission's consideration. The 
written submissions and proposed remedial orders must be filed no later 
than the close of business on September 11, 2000. Reply submissions 
must be filed no later than the close of business on September 18, 
2000. No further submissions will be permitted unless otherwise ordered 
by the Commission.
    Persons filing written submissions must file with the Office of the 
Secretary the original document and 14 true copies thereof on or before 
the deadlines stated above. Any person desiring to submit a document 
(or portion thereof) to the Commission in confidence must request 
confidential treatment unless the information has already been granted 
such treatment during the proceedings. All such requests should be 
directed to the Secretary of 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 
is granted by the Commission will be treated accordingly. All 
nonconfidential written submissions will be available for public 
inspection at the Office of the Secretary.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930 (19 U.S.C. 1337), and section 210.42 of the 
Commission's Rules of Practice and Procedure (19 CFR 210.42).
    Copies of the public version of the ID and all other 
nonconfidential 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, S.W., Washington, D.C. 
20436, telephone 202-205-2000. Hearing-impaired persons are advised 
that information can be obtained by contacting the Commission's TDD 
terminal on 202-205-1810. General information concerning the Commission 
may also be obtained by accessing its Internet server (http://www.usitc.gov).

By order of the Commission.

    Issued: August 28, 2000.
Donna R. Koehnke,
Secretary.
[FR Doc. 00-22438 Filed 8-31-00; 8:45 am]
BILLING CODE 7020-02-P