[Federal Register Volume 87, Number 34 (Friday, February 18, 2022)]
[Notices]
[Pages 9380-9382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03518]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1211]


Certain Vaporizer Cartridges and Components Thereof; Issuance of 
a General Exclusion Order and Cease and Desist Orders; 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 determined to affirm a summary determination of 
violation of section 337 with respect to certain respondents found in 
default. The Commission and has further determined to issue a general 
exclusion order (``GEO'') denying entry of certain infringing vaporizer 
cartridges and components thereof as well as cease and desist orders 
(``CDOs'') against certain of the defaulting respondents. This 
investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Ronald A. Traud, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-3427. 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 
on (202) 205-1810.

SUPPLEMENTARY INFORMATION: On August 14, 2020, the Commission 
instituted this investigation based on a complaint, as supplemented, 
filed on behalf of Juul Labs, Inc. (``JLI'') of San Francisco, 
California. 85 FR 49679-80 (Aug. 14, 2020). The complaint, as 
supplemented, alleges violations 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, the sale for importation, and the 
sale within the United States after importation of certain vaporizer 
cartridges and components thereof by reason of infringement of the sole 
claims of U.S. Design Patent Nos. D842,536; D858,870; D858,869; and 
D858,868 (collectively, the ``Asserted Patents''), respectively. Id. 
The complaint further alleges that a domestic industry exists. Id.
    The Commission's notice of investigation, as amended, names forty-
nine respondents (grouped by defaulting and non-defaulting 
respondents):

--(1) 101 Smoke Shop, Inc. (``101 Smoke Shop''); (2) Eon Pods LLC 
(``Eon Pods''); (3) Jem Pods, U.S.A. (``Jem Pods''); (4) Sky 
Distribution LLC (``Sky Distribution''); (5) Vapers & Papers, LLC 
(``Vapers & Papers''); (6) Access Vapor LLC D/B/A Cali Pods 
(``Access Vapor'') (Access Vapor LLC and Cali Pods were originally 
identified as two distinct respondents. See 85 FR 49679-80 (notice 
of investigation). Cali Pods, however, is a business alias of Access 
Vapor. See Order No. 65 at 2, n.1); (7) eLiquid Stop; (8) Shenzhen 
Apoc Technology Co., Ltd. (``Shenzhen Apoc''); (9) Shenzhen Ocity 
Times Technology Co., Ltd. (``Shenzhen Ocity''); (10) Evergreen 
Smokeshop; (11) Shenzhen Azure Tech USA LLC F/K/A DS Vaping P.R.C. 
(``Shenzhen Azure''); (12) DripTip Vapes LLC (``DripTip Vapes''); 
(13) Modern Age Tobacco; (14) Dongguan Hengtai Biotechnology Co., 
Ltd. D/B/A Mr. Fog (``Mr. Fog''); (15) Shenzhen Yark Technology Co., 
Ltd. (``Shenzhen Yark''); (16) Guangdong Cellular Workshop 
Electronic Technology Co., Ltd. (``Guangdong Cellular''); (17) 
Shenzhen Bauway Technology Ltd. (``Shenzhen Bauway''); (18) Shango 
Distribution LLC D/B/A Puff E-Cig (``Puff E-Cig'') (the first 18 
respondents are collectively referred to herein as the ``Defaulting 
Respondents.'');
--(19) Vapeonline LLC D/B/A 2nd Wife Vape (``2nd Wife Vape''); (20) 
All Puff Store; (21) Alternative Pods; (22) Ana Equity LLC (``Ana 
Equity''); (23) Aqua Haze LLC (``Aqua Haze''); (24) Cali Pods; (25) 
Canal Smoke Express, Inc. (``Canal Smoke''); (26) Tobacco Club & 
Gifts, Inc., D/B/A CaryTown Tobacco (``CaryTown Tobacco''); (27) 
Cigar Road, Inc. (``Cigar Road''); (28) Cloud 99 Vapes; (29) eCig-
City; (30) VR Products I LLC D/B/A eJuiceDB (``eJuiceDB''); (31) 
Texas E. Cigarette D/B/A EZFumes (``EZFumes''); (32) JC Pods; (33) 
JUULSite Inc. (``JUULSite''); (34) Keep Vapor Electronic Tech. Co., 
Ltd. (``Keep Vapor''); (35) Limitless Accessories, Inc. (``Limitless 
Accessories''); (36) Midwest Goods, Inc. (``Midwest Goods''); (37) 
OMID Holdings, Inc. D/B/A Naturally Peaked Health Co. (``Naturally 
Peaked Health''); (38) Nilkant 167 Inc. (``Nilkant''); (39) Perfect 
Vape LLC (``Perfect Vape''); (40) Price Point Distributors Inc. D/B/
A Price Point NY (``Price Point NY''); (41) Bansidhar Inc. D/B/A 
Smoker's Express (``Smoker's Express''); (42) The Kind Group LLC 
(``Kind Group''); (43) Three Mini Calvins, LLC D/B/A Tobacco Alley 
of Midland (``Tobacco Alley''); (44) Valgous; (45) Vape Central 
Group; (46) Cork & Twist, Inc. D/B/A Vape `n Glass (``Vape `n 
Glass''); (47) Vaperistas; (48) WeVapeUSA; and (49) Wireless N Vapor 
Citi LLC (``Wireless N Vapor Citi''). Id.; see also Order No. 22 
(Oct. 21, 2020) (granting motion to amend the complaint and notice 
of investigation to correct the legal names of Respondents 2nd Wife 
Vape, CaryTown Tobacco, eJuiceDB, EZFumes, Price Point NY, Smoker's 
Express, Tobacco Alley, Vape `n Glass, Naturally Peaked Health, and 
Puff E-Cig and ``the name and address for Respondent Mr. Fog.''), 
unreviewed by Notice, 85 FR 73748-49 (Nov. 19, 2020).

    The Office of Unfair Import Investigations (``OUII'') is also a 
party to the investigation. 85 FR at 49679.
    After institution of this investigation, JLI amended the Complaint 
and notice of investigation to, inter alia: (1) Include ``the true 
legal names for each of Respondents 2nd Wife Vape, CaryTown Tobacco, 
eJuiceDB, EZFumes, Price Point NY, Smoker's Express, Tobacco Alley, 
Vape `n Glass, Naturally Peaked Health, and Puff E-Cig''; (2) clarify 
that originally-named respondents Limitless Accessories and Valgous are 
a single legal entity; (3) correct ``the name and address for 
Respondent Mr. Fog''; and (4) correct ``the addresses for Respondents 
Shenzhen Azure Tech USA LLC f/k/a DS Vaping P.R.C. and Shenzhen Yark 
Technology Co., Ltd.'' Order No. 22 (Oct. 21, 2020), unreviewed by 
Notice, 85 FR 73748-49 (Nov. 19, 2020).
    The Commission previously terminated the investigation as to 29 
respondents pursuant to Commission Rule 210.21(c) (19 CFR 210.21(c)) 
based on consent orders, and one respondent pursuant to Commission Rule 
210.21(a) (19 CFR 210.21(a)) due to JLI's failure to serve that entity 
with the Complaint and Notice of Investigation. Order No. 23 (Oct. 29, 
2020) (terminating and issuing

[[Page 9381]]

consent order to Midwest Goods), unreviewed by Notice (Nov. 18, 2020); 
Order Nos. 26-29 (Dec. 8, 2020) (terminating and issuing consent orders 
to Vape 'N Glass, Vaperistas, Aqua Haze, and 2nd Wife Vape), unreviewed 
by Notice (Dec. 22, 2020); Order Nos. 30 & 31 (Dec. 10, 2020) 
(terminating and issuing consent orders to EZFumes and eJuiceDB), 
unreviewed by Notice (Jan. 4, 2021); Order No. 32 (Dec. 14, 2020) 
(terminating and issuing a consent order to JC Pods), unreviewed by 
Notice (Jan. 4, 2021); Order Nos. 33 & 34 (Dec. 15, 2020) (terminating 
and issuing consent orders to Tobacco Alley and WeVapeUSA), unreviewed 
by Notice (Jan. 5, 2021); Order No. 37 (Dec. 30, 2020) (terminating and 
issuing a consent order to Vape Central Group), unreviewed by Notice 
(Jan. 21, 2021); Order No. 38 (Jan. 5, 2021) (terminating and issuing a 
consent order to Ana Equity), unreviewed by Notice (Jan. 21, 2021); 
Order Nos. 40-42 (Feb. 1, 2021) (terminating and issuing consent orders 
to eCig-City, All Puff Store, and Wireless N Vapor Citi), unreviewed by 
Notice (Feb. 16, 2021); Order Nos. 43-48 (Feb. 2, 2021) (terminating 
and issuing consent orders to JUULSite, Alternative Pods, Limitless 
Accessories, Price Point NY, Naturally Peaked Health Co., and Smoker's 
Express), unreviewed by Notice (Feb. 22, 2021); Order Nos. 49 & 50 
(Feb. 3, 2021) (terminating and issuing consent orders to Kind Group 
and CaryTown Tobacco), unreviewed by Notice (Feb. 22, 2021); Order Nos. 
53 & 54 (Feb. 17, 2021) (terminating and issuing consent orders to 
Cigar Road and Nilkant), unreviewed by Notice (Mar. 15, 2021); Order 
No. 58 (Mar. 18, 2021) (terminating and issuing a consent order to 
Cloud 99 Vapes), unreviewed by Notice (Apr. 2, 2021); Order No. 60 
(Apr. 9, 2021) (terminating and issuing a consent order to Canal 
Smoke), unreviewed by Notice, (Apr. 22, 2021); Order No. 61 (Apr. 28, 
2021) (terminating and issuing a consent order to Perfect Vape), 
unreviewed by Notice (May 17, 2021); Order No. 51 (Feb. 8, 2021) 
(terminating investigation as to Keep Vapor), unreviewed by Notice 
(Feb. 22, 2021).
    The Commission previously found the remaining eighteen respondents 
(``the Defaulting Respondents'') in default. See Order No. 35 (Dec. 17, 
2021) (finding 101 Smoke Shop, Eon Pods, Jem Pods, Vapers & Papers, Sky 
Distribution, and Guangdong Cellular in default), unreviewed by Notice 
(Jan. 5, 2021); Order No. 62 (May 5, 2021) (finding Shenzhen Azure, 
Evergreen Smokeshop, DripTip Vapes, Modern Age Tobacco, and Mr. Fog in 
default), unreviewed by Notice (May 19, 2021); Order No. 63 (May 5, 
2021) (finding Shango Distribution and Shenzhen Yark in default), 
unreviewed by Notice (May 19, 2021); Order No. 64 (Sept. 13, 2021) 
(finding Shenzhen Bauway, Shenzhen Apoc, Access Vapor, eLiquid Stop, 
and Shenzhen Ocity in default), unreviewed by Notice (Sept. 30, 2021).
    On October 14, 2021, the presiding administrative law judge 
(``ALJ'') issued an initial determination (``ID''), Order No. 65, 
granting a motion filed by JLI pursuant to Commission Rule 210.18 (19 
CFR 210.18) seeking a summary determination on violation as to the 
Defaulting Respondents. The ID includes the ALJ's Recommended 
Determination (``RD'') on remedy and bonding, which recommended that 
the Commission issue a general exclusion order and impose a one hundred 
percent (100%) bond during the period of Presidential review. The RD 
also recommends that the Commission issue cease and desist orders 
directed to the twelve domestic Defaulting Respondents, namely, 101 
Smoke Shop, Eon Pods, Jem Pods, Sky Distribution, Vapers & Papers, 
Access Vapor, eLiquid Stop, Evergreen Smokeshop, Shenzhen Azure, 
DripTip Vapes, Modern Age Tobacco, and Shango Distribution.
    No petitions for review of the ID were filed, and the Commission 
received no comments or statements on the public interest, either 
pursuant to Commission Rule 210.50(a)(4) (19 CFR 210.50(a)(4)) or the 
post-RD notice, see 86 FR 58099 (Oct. 20, 2021).
    On November 29, 2021, the Commission determined to review Order No. 
65 in part with respect to the economic prong of the domestic industry 
requirement. The Commission requested briefing concerning only remedy, 
the public interest, and bonding.
    On December 13, 2021, JLI filed an initial submission in response 
to the Commission's notice requesting that the Commission issue a GEO, 
issue CDOs against the twelve domestic Defaulting Respondents, and set 
a bond of one hundred percent (100%) of entered value during the period 
of Presidential review. On the same day, OUII also filed an initial 
submission supporting the ALJ's recommendations. On December 20, 2021, 
JLI submitted a response to OUII's brief. No other submissions were 
filed in response to the Notice.
    On review, the Commission affirms the ID's finding that there is a 
violation of section 337 with respect to the Defaulting Respondents, 
including the ID's finding that JLI has satisfied the economic prong of 
the domestic industry requirement. Moreover, the Commission finds that 
the statutory requirements for issuance of a GEO under section 
337(d)(2) are met. See 19 U.S.C. 1337(d)(2). The Commission also finds 
that issuance of CDOs against the twelve domestic Defaulting 
Respondents is appropriate under sections 337(f)(1) and (g)(1). See 19 
U.S.C. 1337(f)(1), (g)(1). In addition, the Commission finds that the 
public interest factors do not preclude issuance of the requested 
relief. See 19 U.S.C. 1337(d)(1), (f)(1), (g)(1).
    The Commission therefore has determined that the appropriate remedy 
in this investigation is: (1) A GEO prohibiting the unlicensed entry of 
certain vaporizer cartridges and components thereof that infringe the 
claims of the Asserted Patents; and (2) CDOs against respondents 101 
Smoke Shop, Eon Pods, Jem Pods, Sky Distribution, Vapers & Papers, 
Access Vapor, eLiquid Stop, Evergreen Smokeshop, Shenzhen Azure, 
DripTip Vapes, Modern Age Tobacco, and Shango Distribution. The 
Commission has also determined that the bond during the period of 
Presidential review shall be in the amount of one hundred percent 
(100%) of the entered value of the articles subject to the GEO and 
CDOs. See 19 U.S.C. 1337(j).
    The Commission's orders were delivered to the President and to the 
United States Trade Representative on the day of their issuance. The 
investigation is terminated.
    The Commission vote for this determination took place on February 
14, 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).
    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(s) 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.


[[Page 9382]]


    Issued: February 14, 2022.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2022-03518 Filed 2-17-22; 8:45 am]
BILLING CODE 7020-02-P