[Federal Register Volume 87, Number 5 (Friday, January 7, 2022)]
[Notices]
[Pages 990-992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00086]


=======================================================================
-----------------------------------------------------------------------

INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1230]


Certain Electric Shavers and Components and Accessories Thereof; 
Commission Determination To Review in Part an Initial Determination 
Granting in Part Complainant's Motion for Summary Determination of a 
Violation of Section 337; Schedule for Filing Written Submissions on 
the Issues Under Review and on Remedy, the Public Interest, and Bonding

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission (``Commission'') has determined to review in part an initial 
determination (``ID'') (Order No. 33) of the presiding administrative 
law judge (``ALJ''), granting in part summary determination on 
violation of section 337 and including a recommended determination 
(``RD'') on remedy and bonding. The Commission has determined to review 
the ID's findings concerning the economic prong of the domestic 
industry requirement. The Commission requests briefing from the parties 
on the issue under review, and briefing from the parties, interested 
government agencies, and interested persons on the issues of remedy, 
the public interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 708-2532. 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 (202) 205-1810.

SUPPLEMENTARY INFORMATION: On November 18, 2020, the Commission 
instituted this investigation based on a complaint filed by Complainant 
Skull Shaver (``Skull Shaver'') of Moorestown, New Jersey. 85 FR 73510-
11 (Nov. 18, 2020). The complaint alleged violations of section 337 of 
the Tariff Act of 1930, as amended, 19 U.S.C. 1337, based on the 
importation into the United States, the sale for importation, or the 
sale within the United States after importation of certain electric 
shavers and components and accessories thereof by reason of 
infringement of certain claims of U.S. Patent Nos. 8,726,528 and 
D672,504. Id. The Commission's notice of investigation named the 
following eleven entities as respondents: Rayenbarny Inc. 
(``Rayenbarny'') of New York, New York; Bald Shaver Inc. (``Bald 
Shaver'') of Toronto, Canada; Suzhou Kaidiya Garments Trading Co., Ltd. 
(``Suzhou'') d.b.a. ``Digimator'' of Suzhou, China; Shenzhen Aiweilai 
Trading Co., Ltd. (``Aiweilei'') d.b.a. ``Teamyo'' of Shenzhen, China; 
Wenzhou Wending Electric Appliance Co., Ltd. of Yueqing City, China; 
Shenzhen Nukun Technology Co., Ltd. (``Nukun'') d.b.a. ``OriHea'' of 
Shenzhen, China; Yiwu Xingye Network Technology Co. Ltd. (``Yiwu 
Xingye'') d.b.a. ``Roziapro'' of Yiwu, China; Magicfly LLC 
(``Magicfly'') of Hong Kong; Yiwu City Qiaoyu Trading Co., Ltd. (``Yiwu 
City'') of Yiwu, China; Shenzhen Wantong Information Technology Co., 
Ltd. (``Wantong'') d.b.a. ``WTONG'' of Shenzhen, China; and Shenzhen 
Junmao International Technology Co., Ltd. (``Junmao'') d.b.a. 
``Homeas'' of Shenzhen, China. The notice of investigation also named 
the Office of Unfair Import Investigations (``OUII'') as a party. Id.
    The Commission terminated Rayenbarny from the investigation because 
its accused product was actually imported by Benepuri LLC 
(``Benepuri'') of Menands, New York; the Commission allowed Benepuri to 
intervene as a respondent. Notice, 85 FR 82514, 82515 (Dec. 18, 2020). 
The Commission later granted Skull Shaver's motion to amend the 
Complaint and the notice of investigation to correct the name of 
Wenzhou Wending Electric Appliance Co., Ltd. d.b.a. ``Paitree'' is 
Wenzhou Wending Electric Appliance Co., Ltd. (``Wenzhou''), and to 
correct the addresses of several respondents. Notice, 86 FR 14645, 
14645 (Mar. 17, 2021). The Commission terminated Magicfly from the 
investigation on the basis of settlement. Notice at 2 (May 19, 2021). 
The Commission terminated Nukun and Benepuri from the investigation on 
the basis of withdrawal of the complaint. Notice at 2 (June 21, 2021) 
(Nukun); Notice at 2 (Oct. 28, 2021) (Benepuri). All of the remaining 
respondents (i.e., all respondents other than Magicfly, Nukun, Benepuri 
and Rayenbarny) defaulted. See Notice at 3 (May 21, 2021) (seven 
defaulting respondents); Notice at 2 (Dec. 9, 2021) (Bald Shaver). 
Taken together, the eight defaulting respondents are: Suzhou; Yiwu 
City; Wenzhou; Aiweilai; Junmao; Wantong; Yiwu Xingye; and Bald Shaver.
    On May 26, 2021, Skull Shaver filed a motion for summary 
determination of violation of section 337 by the eight defaulting 
respondents and for a recommendation that the Commission issue a 
general exclusion order (``GEO'') and cease and desist orders 
(``CDOs''). See Complainants' Motion for Summary Determination of 
Violation and for Recommended Determination on Remedy and Bonding 
(``Skull Shaver Motion''). On June 7, 2021, OUII filled a response in 
support of Skull Shaver's motion. See Commission Investigative Staff's 
Response to Skull Shaver's Motion for Summary Determination of 
Violation (``OUII Response''). No respondent filed a response to Skull 
Shaver's motion.
    On September 23, 2021, OUII filed a notice of supplemental 
authority concerning the domestic industry requirement. On September 
28, 2021, the ALJ issued an order (Order No. 31) ordering certain 
supplementation of Skull Shaver's domestic industry analysis. On 
October 14, 2021, Skull Shaver submitted its supplement in response to 
Order No. 31. No other responses to Order No. 31 were filed. On 
November 18, 2021, the ALJ granted-in-part Skull Shaver's motion for 
summary determination as the subject ID.
    The ID finds that Skull Shaver owns the asserted patents, and that 
those patents are valid and enforceable. ID at 3. The ID further finds 
that although all respondents imported, sold for importation, or sold 
within the United States after importation at least one accused 
article, the only respondents whose articles infringe the asserted 
patents are Yiwu Xingye and Yiwu City. Id. at 3-4. The ID finds that 
personal jurisdiction is not necessary over each

[[Page 991]]

defaulting respondent, but that the defaulting respondents waived any 
opportunity to contest the allegation that personal jurisdiction 
exists. Id. The ID further finds that Skull Shaver meets the technical 
prong and the economic prong of the domestic industry requirement. Id. 
at 4. As to remedy, the RD finds that there is a widespread pattern of 
unauthorized use of the asserted patents and that a GEO is necessary to 
prevent circumvention. Id. at 4. The RD also recommends issuance of 
CDOs against the two infringing respondents that maintain domestic 
inventories. RD at 80-81. The RD recommends a bond rate of 100% because 
complete pricing information is not available. RD at 82.
    No petitions for review of the ID were filed.
    The Commission has determined to review the ID's findings 
concerning the economic prong of the domestic industry requirement, and 
not to review the ID's findings on other issues.
    The parties are asked to brief the following issues concerning the 
economic prong of the domestic industry requirement:
    (1) Within each of the general categories of labor (management, 
marketing/creative, customer service, and logistics/warehousing), 
please explain which particular activities differ from those of a mere 
importer, including by addressing the extent to which the activities do 
not need to take place in the United States either as a legal or a 
practical matter.
    (2) Please provide, to the extent permitted by the record, a 
breakout or estimated breakout of the claimed expenditures by type of 
activities to allow separate consideration of expenses for activities 
that do not need to take place in the United States either as a legal 
or a practical matter. In your answer please be sure to address (a) the 
various tasks performed by management, (b) the work done by logistics/
warehouse employees related to quality control and repair, and (c) the 
work done by marketing/creative employees related to industrial design, 
research and development, and prototyping.
    (3) Does the total claimed expense for logistics/warehouse labor 
costs (see, e.g., ID at 63) include all activities done by those 
workers, or only quality control and repair work?
    In connection with the final disposition of this investigation, the 
statute authorizes issuance of: (1) An exclusion order that could 
result in the exclusion of the subject articles from entry into the 
United States, and/or (2) one or more cease and desist orders that 
could result in the Defaulting Respondents 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, Comm'n Op. at 7-10 (December 1994).
    The statute requires the Commission to consider the effects of any 
remedy upon the public interest. The public interest factors the 
Commission will consider include the effect that an exclusion order 
and/or CDO 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, 
disapprove, or take no action on the Commission's determination. 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: The parties to the investigation are requested 
to file written submissions on the issue under review as set forth 
above. Parties to this investigation, interested government agencies, 
and any other interested parties are invited to file written 
submissions on the issues of remedy, the public interest, and bonding. 
Such submissions should include views on the recommended determination 
by the ALJ on remedy and bonding.
    In its initial written submissions, Skull Shaver is also requested 
to identify the remedy sought and Skull Shaver and OUII are also 
requested to submit proposed remedial orders for the Commission's 
consideration. Skull Shaver is further requested to provide the HTSUS 
subheadings under which the subject articles are imported and to supply 
identification information for all known importers of the subject 
articles.
    Initial written submissions, including proposed remedial orders, 
must be filed no later than close of business on January 18, 2022. 
Reply submissions must be filed no later than the close of business on 
January 25, 2022. 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 stated above. The 
Commission's paper filing requirements in 19 CFR 210.4(f) are currently 
waived. 85 FR 15798 (Mar. 19, 2020). Submissions should refer to the 
investigation number (Inv. No. 337-TA-1230) in a prominent place on the 
cover page and/or the first page. (See Handbook for Electronic Filing 
Procedures, https://www.usitc.gov/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 by marking each document 
with a header indicating that the document contains confidential 
information. This marking will be deemed to satisfy the request 
procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b) 
& 210.5(e)(2)). 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 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

[[Page 992]]

personnel, solely for cybersecurity purposes. All contract personnel 
will sign appropriate nondisclosure agreements. All non-confidential 
written submissions will be available for public inspection at the 
Office of the Secretary and on EDIS.
    The Commission vote for these determinations took place on January 
3, 2022.
    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: January 4, 2022.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2022-00086 Filed 1-6-22; 8:45 am]
BILLING CODE 7020-02-P