[Federal Register Volume 85, Number 71 (Monday, April 13, 2020)]
[Notices]
[Pages 20522-20523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07641]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1141]


Certain Cartridges for Electronic Nicotine Delivery Systems and 
Components Thereof; Notice of a Commission Determination To Issue 
Remedial Orders and Impose a Bond on Defaulting Respondents; 
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 (the ``Commission'') has determined to issue a limited 
exclusion order and cease and desist orders against the respondents 
found to be in default in this investigation, namely, DripTip Vapes LLC 
(``DripTips'') of Plantation, Florida; Shenzhen OVNS Technology Co., 
Ltd. (``OVNS'') of Guangdong, China; Shenzhen Haka Flavor Technology 
Co., Ltd. (``Haka'') of Guangdong, China; and Shenzhen OCIGA Technology 
Co., Ltd. (``OCIGA'') of Guangdong, China (collectively, ``the 
Defaulting Respondents''). The Commission has also determined to impose 
a bond equal to 281 percent of the entered value of the accused 
products imported during the period of Presidential review. The 
investigation is hereby terminated.

FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-2382. Copies of non-
confidential documents filed in connection with this investigation may 
be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email 
[email protected]. General information concerning the Commission may 
also be obtained by accessing its internet server at https://www.usitc.gov. Hearing-impaired persons are advised that information on 
this matter can be obtained by contacting the Commission's TDD terminal 
telephone on (202) 205-1810.

SUPPLEMENTARY INFORMATION: On December 27, 2018, the Commission 
instituted the present investigation based on a complaint filed by Juul 
Labs, Inc. (``Juul'' or ``Complainant'') of San Francisco, California. 
83 FR 66746-747 (Dec. 27, 2018). The complaint alleges a violation of 
19 U.S.C. 1337, as amended (``Section 337''), in the importation, sale 
for importation, and sale in the United States after importation of 
certain cartridges used in electronic nicotine delivery systems and 
components thereof that allegedly infringe one or more of the asserted 
claims of U.S. Patent Nos. 10,058,129; 10,104,915; 10,111,470; 
10,117,465; and 10,117,466. Id. The complaint also alleges the 
existence of a domestic industry. Id. The notice of investigation named 
23 respondents. Id. The Office of Unfair Import Investigations 
(``OUII'') was also named as a party. Id.
    On May 3, 2019, the presiding administrative law judge (``ALJ'') 
found the Defaulting Respondents in default. Order No. 26 (May 3, 
2019), not rev'd, Comm'n Notice (May 31, 2019). On September 9, 2019, 
Juul filed a Declaration Seeking Immediate Relief Against Defaulting 
Respondents. On September 19, 2019, OUII filed a response opposing 
Juul's declaration as premature and stating that any requested relief 
should be deferred until the end of the investigation.
    The Commission terminated the investigation with respect to all of 
the other respondents through a series of settlement agreements and 
consent orders. Order No. 51 (Dec. 5, 2019), not rev'd, Comm'n Notice 
(Jan. 6, 2020); Order Nos. 46-50 (Nov. 18, 2019), not rev'd, Comm'n 
Notice (Dec. 16, 2019); Order No. 44 (Sept. 18, 2019), not rev'd, 
Comm'n Notice (Oct. 15, 2019); Order No. 34 (June 14, 2019), not rev'd, 
Comm'n Notice (July 10, 2019); Order No. 30 (May 15, 2019), not rev'd, 
Comm'n Notice (June 12, 2019); Order No. 25 (April 18, 2019), not 
rev'd, Comm'n Notice (May 15, 2019); Order Nos. 19-21 (Apr. 10, 2019), 
not rev'd, Comm'n Notice (May 7, 2019); Order Nos. 15, 16 (Mar. 12, 
2019), not rev'd, Comm'n Notice (Mar. 26, 2019); Order Nos. 13, 14 
(Feb. 28, 2019), not rev'd, Comm'n Notice (Mar. 26, 2019).
    The Commission, in terminating the last active respondent from the 
investigation, also terminated the proceedings before the ALJ. Order 
No. 51 at 3 (Dec. 5, 2019), not rev'd, Comm'n Notice (Jan. 6, 2020). 
Accordingly, Juul renewed its request for relief against the Defaulting 
Respondents on December 12, 2019. The Commission, in the same notice 
that terminated the investigation with respect to the last remaining 
respondent, requested briefing on the issues of remedy, bonding, and 
the public interest. Comm'n Notice (Jan. 6, 2020). The Commission also 
found Juul's September 9, 2019, declaration to be moot. Id.
    On January 13, 2020, both Juul and OUII filed statements on remedy, 
public interest, and bonding. On January 20, 2020, Juul filed a reply 
to OUII's initial submission. None of the Defaulting Respondents filed 
a response to either the Commission's original notice or the initial 
submissions filed by Juul or OUII.
    Upon review of the parties' submissions, and in the absence of any 
response from the Defaulting Respondents, the Commission has determined 
to issue a limited exclusion order and cease and desist orders against 
the Defaulting Respondents. The Commission has further determined to 
set a bond equal to 281 percent of the entered value of the covered 
products. The investigation is hereby terminated.

[[Page 20523]]

    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).
    While temporary remote operating procedures are in place in 
response to COVID-19, the Office of the Secretary is not able to serve 
parties that have not retained counsel or otherwise provided a point of 
contact for electronic service. Accordingly, pursuant to Commission 
Rules 201.16(a) and 210.7(a)(1) (19 CFR 201.16(a), 210.7(a)(1)), the 
Commission orders that the Complainant complete service for any party/
parties without a method of electronic service noted on the attached 
Certificate of Service and shall file proof of service on the 
Electronic Document Information System (EDIS).

    By order of the Commission.

    Issued: April 7, 2020.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2020-07641 Filed 4-10-20; 8:45 am]
 BILLING CODE 7020-02-P