[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)]
[Notices]
[Pages 35058-35059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12814]


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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 
Commission's Final Determination Finding a Violation of Section 337; 
Issuance of a Limited Exclusion Order and Cease and Desist Order; 
Termination of the Investigation

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 found a violation of section 337 of the Tariff Act of 
1930, as amended, 19 U.S.C. 1337, in this investigation and has issued 
a limited exclusion order prohibiting importation of certain stainless 
steel products manufactured by or on behalf of respondent Viraj 
Profiles Limited (``Viraj Profiles'') using the complainant's 
misappropriated trade secrets. The Commission has also issued a cease 
and desist order directed to Viraj Profiles. The investigation is 
terminated.

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

[[Page 35059]]

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 (1) Viraj Profiles of Mumbai, India; 
Viraj Holdings P. Ltd. of Mumbai, India; Viraj--U.S.A., Inc. of Garden 
City, New York; (2) 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. Id. 
The Office of Unfair Import Investigations also was named as a party to 
the investigation. Id.
    On December 8, 2015, the administrative law judge (``ALJ'') issued 
an initial determination (``ID'') (Order No. 17) granting in part 
Valbruna's motion for default and other relief. The ALJ found that 
Viraj Profiles acted in bad faith in spoliating evidence and that a 
sanction of default against Viraj Profiles was warranted. On February 
8, 2016, the Commission determined to review Order No. 17, and, in that 
notice of review, determined to affirm the default finding against 
Viraj Profiles, noting that supplemental reasoning would be provided in 
a forthcoming opinion. 81 FR 7584 (Feb. 12, 2016). The Commission also 
requested briefing from the parties on certain issues on review, and 
requested briefing from the parties, interested government agencies, 
and any other interested persons on the issues of remedy, the public 
interest, and bonding. Id.
    On February 18, 2016, the parties filed initial written submissions 
addressing the Commission's questions and remedy, the public interest, 
and bonding. Also, on February 18, 2016, several non-parties filed 
responses to the Commission's February 8, 2016 notice, including 
Forging Industry Association, Central Wire Inc., Sumiden Wire Products 
Corporation, Tree Island Steel, Tri Star Metals, LLC, Carpenter 
Technology Corporation, Crucible Industries LLC, Electralloy (G.O. 
Carlson Inc., Co.), North American Stainless, Outokumpu Stainless USA, 
LLC, and Universal Stainless & Alloy Products, Inc. On February 24, 
2016, U.S. Representatives Tim Murphy and Peter J. Visclosky, the 
respective Chairman and Vice Chairman of the Congressional Steel 
Caucus, also filed a response to the Commission's February 8, 2016 
notice. On February 25, 2016, the parties filed reply submissions. 
Also, on February 25, 2016, several non-parties filed reply 
submissions, including American Wire Producers Association, Alloy 
Screen Works, Inc., Cincinnati Metals Inc., Kerkau Mfg., Carpenter 
Technology Corporation, Crucible Industries LLC, Electralloy (G.O. 
Carlson Inc., Co.), North American Stainless, Outokumpu Stainless USA, 
LLC, and Universal Stainless & Alloy Products, Inc. On February 25, 
2016, U.S. Senator Joe Donnelly of Indiana also filed a response to the 
Commission's February 8, 2016 notice.
    On March 3, 2016, the ALJ issued an ID (Order No. 19) granting 
Valbruna's motion for partial termination of the investigation based on 
withdrawal of the complaint against all respondents except Viraj 
Profiles. On April 4, 2016, the Commission determined not to review 
Order No. 19. Notice (Apr. 4, 2016).
    Having examined the record of this investigation, including the 
various IDs and the parties' submissions, the Commission has determined 
to vacate the portions of Order No. 17 with respect to (1) disgorgement 
and (2) denial of Valbruna's request for leave to assert additional 
operating practices.
    The Commission has determined the appropriate remedy is a limited 
exclusion order prohibiting, for 16.7 years from the date of the order, 
the entry of stainless steel products manufactured by or on behalf of 
Viraj Profiles using any of the misappropriated trade secrets 
identified in Valbruna's complaint (see Compl. ]] 27-33, 51 and 
accompanying exhibits). The Commission has also determined to issue a 
cease and desist order prohibiting Viraj Profiles from, inter alia, 
importing or selling the subject products. The Commission has 
determined that the public interest factors enumerated in section 
337(d) and (f), 19 U.S.C. 1337(d), (f), do not preclude the issuance of 
the limited exclusion order or the cease and desist order. The 
Commission has determined to apply a bond in the amount of 13.4 percent 
of the entered value of excluded products imported or sold during the 
period of Presidential review (19 U.S.C. 1337(j)).
    The Commission's order and opinion were delivered to the President 
and to the United States Trade Representative on the day of their 
issuance.
    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: May 25, 2016.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2016-12814 Filed 5-31-16; 8:45 am]
 BILLING CODE 7020-02-P