Certain Foodservice Equipment and Components Thereof; Notice of Commission Determination Finding No Violation of Section 337; Termination of the Investigation, 58097-58098 [2021-22813]

Agencies

• INTERNATIONAL TRADE COMMISSION

[Federal Register Volume 86, Number 200 (Wednesday, October 20, 2021)]
[Notices]
[Pages 58097-58098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22813]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1166]


Certain Foodservice Equipment and Components Thereof; Notice of 
Commission Determination Finding No Violation of Section 337; 
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 (``Commission'') has determined to affirm in part and take 
no position in part with respect to the final initial determination's 
(``final ID'') finding that no violation of section 337 has occurred. 
The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Ron Traud, 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: The Commission instituted this investigation 
on July 3, 2019, based on a complaint filed on behalf of Illinois Tool 
Works, Inc. of Glenview, Illinois; Vesta Global Limited of Hong Kong; 
Vesta (Guangzhou) Catering Equipment Co., Ltd. of China; and Admiral 
Craft Equipment Corp. of Westbury, New York (collectively, 
``Complainants''). 84 FR 31911 (Jul. 3, 2019). The complaint, as 
supplemented, alleged violations of section 337 of the Tariff Act of 
1930, as amended, 19 U.S.C. 1337, based upon the importation of 
articles into the United States, or in the sale of such articles by the 
owner, importer, or consignee of certain foodservice equipment and 
components thereof by reason of misappropriation of trade secrets and 
unfair competition through tortious interference with contractual 
relationships, the threat or effect of which is to destroy or 
substantially injure a domestic industry. Id. at 31911-12. The notice 
of investigation named as respondents Guangzhou Rebenet Catering 
Equipment Manufacturing Co., Ltd.; Zhou Hao; Aceplus International 
Limited (aka Ace Plus International Ltd.); Guangzhou Liangsheng Trading 
Co., Ltd.; and Zeng Zhaoliang, all of China. Id. at 31912. The Office 
of Unfair Import Investigations (``OUII'') was also named as a party in 
this investigation. Id.
    On July 9, 2020, Order No. 52 granted a motion for summary 
determination of no substantial injury to a domestic industry. The 
Commission determined to review Order No. 52, and on December 14, 2020, 
reversed the grant of summary determination.
    On June 4, 2021, the Chief Administrative Law Judge (``CALJ'') 
issued the final ID, which found that Respondents did not violate 
section 337, primarily based on Complainants' failure to establish a 
domestic industry. The final ID found that the Commission has in rem 
jurisdiction over the accused products, subject matter jurisdiction, 
and personal jurisdiction. ID at 99. The final ID also found that 
Respondents imported and sold the accused products in the United 
States. Id. The final ID further found that Respondents have 
misappropriated certain of Complainants' trade secrets in the 
manufacture of certain accused products, but that Complainants have not 
shown that Respondents tortiously interfered with contractual 
relationships. Id. The final ID additionally found that Complainants 
have not shown that the importation and sale of accused products has 
the threat or effect of destroying or substantially injuring a domestic 
industry.

[[Page 58098]]

    The RD issued on June 10, 2021. The RD recommended that, if the 
Commission finds a violation of section 337, the Commission should 
issue a limited exclusion order having various durations for each of 
the various categories of accused products. RD at 10. The durations of 
the recommended exclusion orders range from 1-17 months from issuance. 
Id. at 10-11. The RD further recommended that a cease and desist order 
would not be necessary. Id. at 12. The RD additionally recommended that 
a bond of 1% of entered value be imposed during the period of 
Presidential review. The public interest was not delegated to the CALJ.
    On June 21, 2021, Complainants, Respondents, and OUII filed 
petitions for review. On June 29, 2021, the parties filed responses to 
the petitions.
    On August 4, 2021, the Commission determined to review in part the 
final ID and requested briefing from the parties on the issues under 
review. 86 FR 44054 (Aug. 11, 2021). In particular, the Commission 
determined to review the following: (1) The final ID's findings and 
conclusions as to the existence of a domestic industry and injury to a 
domestic industry; and (2) the final ID's findings and conclusions 
regarding the wrongful taking and use of the Bills of Materials Trade 
Secrets and the Custom Components and Mold Trade Secrets. Id. at 44054-
55. The Commission also sought briefing from the parties, interested 
government agencies, and any other interested parties on remedy, public 
interest, and bonding. Id. at 44055.
    On August 19, 2021, the parties filed their written submissions on 
the issues under review and on remedy, public interest, and bonding, 
and on August 26, 2021, the parties filed their reply submissions.
    Having examined the record of this investigation, including the 
final ID, the petitions for review, the responses thereto, and the 
written submissions received in response to the Commission's request 
for briefing, the Commission finds that no violation of section 337 has 
occurred. More specifically, as explained in the accompanying opinion, 
the Commission affirms with modifications the final ID's conclusion 
that Complainants did not satisfy the domestic industry requirement, 
and takes no position as to the trade secrets issues under review. The 
Commission therefore finds that the Complainants did not establish that 
an industry in the United States exists as required by section 
337(a)(1)(A)(i) and thus did not establish a substantial injury to a 
domestic industry. The investigation is hereby terminated.
    The Commission vote for this determination took place on October 
14, 2021.
    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: October 14, 2021.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2021-22813 Filed 10-19-21; 8:45 am]
BILLING CODE 7020-02-P