[Federal Register Volume 87, Number 138 (Wednesday, July 20, 2022)]
[Notices]
[Pages 43296-43297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15454]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1195]


Certain Electronic Candle Products and Components Thereof; Notice 
of a Commission Determination To Affirm the Remand Initial 
Determination With Certain Modifications and To Find No Violation; 
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, on review, determined to affirm the remand initial 
determination (``RID'') issued on December 29, 2021, finding that 
Complainants failed to establish the economic prong of the domestic 
industry requirement in the above-referenced section 337 investigation. 
The Commission has determined to modify the RID as explained in the 
Commission opinion issued herewith.

FOR FURTHER INFORMATION CONTACT: Panyin A. Hughes, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-3042. 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 April 6, 2020, the Commission instituted 
this investigation based on a complaint filed by complainants L&L 
Candle Company LLC of Brea, California and Sotera Tschetter, Inc. of 
St. Paul, Minnesota (together, ``Complainants''). 85 FR 19158-59 (Apr. 
6, 2020). The complaint alleged violations of section 337 of the 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 electronic candle products and 
components thereof by reason of infringement of certain claims of U.S. 
Patent Nos. 8,550,660; 9,366,402; 9,512,971; 9,523,471; and 10,533,718. 
Id. The notice of investigation named as respondents: The Gerson 
Company of Olathe, Kansas; Gerson International (H.K.) Ltd. of Hong 
Kong; Sterno Home Inc. of Coquitlam, Canada; Ningbo Huamao 
International Trading Co., Ltd. of Ningbo City, China; Ningbo Yinzhou 
Langsheng Artware Co., Ltd of Ningbo City, China; Lifetime Brands, Inc. 
of Garden City, New York; Scott Brothers Entertainment, Inc. of Las 
Vegas, Nevada; Nantong Ya Tai Candle Arts & Crafts Co., Ltd. of San 
Gabriel, California; NapaStyle, Inc. of Napa, California; Veraflame 
International, Inc. of Vancouver, Canada (``Veraflame''); MerchSource, 
LLC of Irvine, California; Ningbo Mascube Import Export Company of 
Ningbo City, China (``Ningbo Mascube''); Decorware International Inc. 
dba Decorware Inc. of Rancho Cucamonga, California; Shenzhen Goldenwell 
Smart Technology Co., Ltd. of Shenzhen City, China; Shenzhen Ksperway 
Technology Co., Ltd. of Shenzhen City, China; Ningbo Shanhuang Electric 
Appliance Co. of Ningbo City, China (``Ningbo Shanhuang''); Yiwu 
Shengda Art Co., Ltd. of Yiwu City, China (``Yiwu Shengda''); Shenzhen 
Tongfang Optoelectronic Technology Co., Ltd. of Shenzhen City, China; 
TFL Candles of Shenzhen City, China; Guangdong Tongfang Lighting Co., 
Ltd. of Hong Kong; Tongfang Optoelectronic Company of Hong Kong; and 
Virtual Candles Limited of Kent, United Kingdom (``Virtual Candles''). 
Id. at 19159. The Office of Unfair Import Investigations (``OUII'') was 
also named as a party to the investigation. Id.
    Of the twenty-two respondents, five were terminated based on 
consent orders, eight were terminated based on settlement agreements, 
three were terminated based on a voluntary withdrawal of the complaint 
due to an inability to serve, and one was terminated based on a summary 
determination of no importation. See Order No. 7 (May 4, 2020), 
unreviewed by Comm'n Notice (Jun. 3, 2020); Order No. 37 (Dec. 17, 
2020), unreviewed by Comm'n Notice (Jan. 5, 2021); Order No. 12 (Jun. 
15, 2020), unreviewed by Comm'n Notice (Jun. 20, 2020); Order No. 15 
(Jul. 15, 2020), unreviewed by Comm'n Notice (Aug. 5, 2020); Order No. 
29 (Oct. 19, 2020), unreviewed by Comm'n Notice (Nov. 2, 2020; Order 
No. 38 (Dec. 18, 2020), unreviewed by Comm'n Notice (Jan. 5, 2021); 
Order No. 39 (Dec. 18, 2020), unreviewed by Comm'n Notice (Jan. 5, 
2021). The Commission found the following five remaining respondents in 
default for failing to respond to the complaint and notice of 
investigation and for failing to show cause why they had not done so, 
or for failing to participate in discovery: Veraflame, Ningbo Mascube, 
Ningbo Shanhuang, Yiwu Shengda, and Virtual Candles (``the Defaulting 
Respondents''). See Order No. 14 (Jul. 8, 2020), unreviewed by Comm'n 
Notice (Aug. 3, 2020) (finding Veraflame, Ningbo Mascube, and Virtual 
Candles in default); Order No. 33 (Nov. 12, 2020), unreviewed by Comm'n 
Notice (Nov. 30, 2020) (finding Yiwu Shengda and Ningbo Shanhuang in 
default).
    On November 13, 2020, Complainants moved for a summary 
determination of violation as to the Defaulting Respondents and for a 
recommendation for the issuance of a general exclusion order. On 
December 4, 2020, OUII filed a response that questioned whether 
Complainants had satisfied the economic prong of the domestic industry 
requirement, but otherwise supported a finding of violation of section 
337 and issuing a general exclusion order. On April 2, 2021, the ALJ 
issued an initial determination (``ID''), Order No. 41, granting 
Complainants' motion for summary determination of violation by each of 
the five Defaulting Respondents. Order No. 41 (Apr. 2, 2021).
    On May 19, 2021, the Commission determined on its own motion to 
review the ID's finding that Complainants satisfied the economic prong 
of the

[[Page 43297]]

domestic industry requirement. 86 FR 28143-46 (May 25, 2021). On August 
13, 2021, the Commission vacated the findings in the ID on the economic 
prong of the domestic industry requirement and remanded the 
investigation to the then Chief Administrative Law Judge (``ALJ'') for 
the issuance of a remand initial determination.
    On December 29, 2021, the then Chief ALJ issued the subject RID, 
finding that Complainants failed to establish the economic prong of the 
domestic industry requirement. On January 20, 2022, Complainants filed 
a petition for review of the RID. On January 28, 2022, OUII filed a 
response to Complainants' petition.
    On April 1, 2022, the Commission determined to review the RID, but 
did not request further briefing from the parties. 87 FR 20459-60 (Apr. 
7, 2022).
    Having examined the record of this investigation, including the 
RID, the petition for review, and the response thereto, the Commission 
has determined to affirm the RID's finding that Complainants have 
failed to establish the economic prong of the domestic industry 
requirement in this investigation. The Commission has determined to 
modify the RID as explained in the Commission opinion issued herewith. 
Accordingly, the Commission finds that there has been no violation of 
section 337 as to the Defaulting Respondents.
    Commissioner Schmidtlein dissents from the Commission's decision 
and has filed a separate opinion explaining her views.
    The Commission vote for this determination took place on July 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.

    By order of the Commission.
    Issued: July 14, 2022.
William Bishop,
Supervisory Hearings and Information Officer.
[FR Doc. 2022-15454 Filed 7-19-22; 8:45 am]
BILLING CODE 7020-02-P