[Federal Register Volume 82, Number 56 (Friday, March 24, 2017)]
[Notices]
[Pages 15067-15068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05845]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-976]
Certain Woven Textile Fabrics and Products Containing Same;
Issuance of a General Exclusion Order; Termination of the Investigation
AGENCY: International Trade Commission.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the U.S. International Trade
Commission has issued a general exclusion order barring entry of
certain woven textile fabrics and products containing same. The
investigation is terminated.
FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, Esq., 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
[[Page 15068]]
investigation are or will be available for inspection during official
business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary,
U.S. International Trade Commission, 500 E Street SW., Washington, DC
20436, telephone (202) 205-2000. General information concerning the
Commission may also be obtained by accessing its Internet server at
https://www.usitc.gov. The public record for this investigation may be
viewed on the Commission's electronic docket (EDIS) at https://edis.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 December 18, 2015, based on a supplemented and twice-amended
complaint filed by AAVN, Inc. of Richardson, Texas (``AAVN''). 80 FR
79094 (Dec. 18, 2015). 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, or the
sale within the United States after importation of certain woven
textile fabrics and products containing same, by reason of infringement
of claims 1-7 of U.S. Patent No. 9,131,790 (``the '790 patent'') and/or
by reason of false advertising. The notice of investigation named
fifteen respondents: AQ Textiles, LLC of Greensboro, North Carolina;
Creative Textile Mills Pvt. Ltd. of Mumbai, India and Indo Count
Industries Ltd., both of Mumbai, India; Indo Count Global, Inc. of New
York, New York; GHCL Limited of Uttar Pradesh, India; Grace Home
Fashions LLC of New York, New York; E & E Company, Ltd. of Maharashtra,
India; E&E Company, Ltd. d/b/a JLA Home of Fremont, California; Welspun
Global Brands Ltd. of Gujarat, India; Welspun USA Inc. of New York, New
York; Elite Home Products, Inc. of Saddle Brook, New Jersey; Pacific
Coast Textiles, Inc. and Amrapur Overseas, Inc., both of Garden Grove,
California; Westport Linens, Inc. of New York, New York; and Pradip
Overseas Ltd. of Ahmedabad, India (``Pradip''). In the course of the
investigation, fourteen of the respondents were terminated from the
investigation based upon settlement agreement or consent order. See
Order No. 21 at 2-3 (Nov. 10, 2016) (summarizing the procedural history
of the investigation). The last remaining respondent was Pradip.
AAVN accused Pradip of false advertising, specifically alleging
that Pradip misrepresented the thread count of sheets manufactured in
India, imported into the United Sates, and sold in United States
department stores. Second Am. Compl. ]] 39-41, 80 (Nov. 12, 2015); id.
at Ex. 46 (``800 Thread Count'' sheets measured at 252.7 threads).
Although Pradip responded to the complaint, Pradip later terminated its
relationship with its attorneys and represented that it would not
participate in the remainder of the investigation. See Order No. 14 at
1 (Apr. 19, 2016); see also 19 CFR 210.17 (failures to act).
On September 2, 2016, AAVN moved for leave to file a motion for
summary determination of violation. The summary determination motion
that was appended argued, inter alia, that Pradip had violated section
337 by falsely advertising the thread count of its imported sheets,
that the false advertising was deceptive, material, and injurious to
AAVN. AAVN sought a general exclusion order and 100 percent bond during
the Presidential review period. See 19 U.S.C. 1337(d)(2), (j)(3). On
September 15, 2016, the Commission investigative attorney (``IA'')
responded in support of the motion for leave and the accompanying
summary determination motion including its proposed relief. Pradip did
not respond. See 19 CFR 210.17(c).
On November 10, 2016, the ALJ granted the motion for summary
determination as an initial determination (Order No. 21). The ID found
that AAVN had shown a violation of section 337 by reason of false
advertising under section 43 of the Lanham Act, 15 U.S.C.
1125(a)(1)(B). Order No. 21 at 7-9, 13-15. As to remedy, citing 19
U.S.C. 1337(d)(2), which sets forth the test for issuance of a general
exclusion order, id. at 16, the ALJ found that ``the evidence shows a
widespread pattern of violation of Section 337,'' id. at 17. The ALJ
also found that ``the evidence shows that it is difficult to identify
the source and manufacturers of the falsely advertised products,''
because ``U.S. retailers fail to identify the manufacturer, importer or
seller of the textile products at the point of sale.'' Id. at 18. Nor
do import records ``reveal the names of the original manufacturers of
the materials used to construct the imported products.'' Id.
Accordingly, the ALJ found ``that the evidence shows that it is
difficult, if not impossible, to identify the sources of the falsely
advertised goods.'' Id. Based on these findings the ALJ recommended the
issuance of a general exclusion order. Id. In the alternative, the ALJ
recommended the issuance of a limited exclusion order. Id. at 19. The
ALJ recommended that bond be set at 100 percent of the entered value of
the falsely advertised products. Id.
On December 20, 2016, the Commission determined not to review Order
No. 21, resulting in a finding of a violation of section 337. 81 FR
95195 (Dec. 27, 2016). The Commission requested written submissions on
remedy, the public interest, and bonding. Id. at 95196. On January 6,
2017, AAVN and the IA filed submissions on these issues. On January 13,
2017, the IA filed a reply to AAVN's submission. No other submissions
were received.
The Commission finds that the statutory requirements for relief
under 19 U.S.C. 1337(d)(2) are met. In addition, the Commission finds
that the public interest factors enumerated in 19 U.S.C. 1337(d)(1) do
not preclude issuance of the statutory relief.
The Commission has determined that the appropriate remedy in this
investigation is a general exclusion order prohibiting the entry of
certain woven textile fabrics and products containing same that are
falsely advertised through a misrepresentation of thread count. The
Commission has also determined that the bond during the period of
Presidential review pursuant to 19 U.S.C. 1337(j) shall be in the
amount of 100 percent of the entered value of the imported articles
that are subject to the general exclusion order. The Commission's order
was delivered to the President and to the United States Trade
Representative on the day of its issuance.
The authority for the Commission's determinations 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: March 20, 2017.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2017-05845 Filed 3-23-17; 8:45 am]
BILLING CODE 7020-02-P