Certain Tires and Products Containing Same: Commission Determination To Issue a Limited Exclusion Order and Cease and Desist Orders Against Respondents Found in Default; Termination of Investigation

Lisa R. Barton
International Trade Commission
July 30, 2014

[Federal Register Volume 79, Number 146 (Wednesday, July 30, 2014)]
[Notices]
[Pages 44194-44195]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17911]


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

INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-894]


Certain Tires and Products Containing Same: Commission 
Determination To Issue a Limited Exclusion Order and Cease and Desist 
Orders Against Respondents Found in Default; Termination of 
Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has issued (1) a limited exclusion order against infringing 
products of respondents previously found in default, i.e., WestKY 
Customs, LLC of Benton, Kentucky (``WestKY''); Tire & Wheel Master, 
Inc. of Stockton, California (``Tire & Wheel Master''); Vittore Wheel & 
Tire of Asheboro, North Carolina (``Vittore''); RTM Wheel & Tire of 
Asheboro, North Carolina (``RTM''); Turbo Wholesale Tires, Inc. of 
Irwindale, California (``Turbo''); Lexani Tires Worldwide, Inc. of 
Irwindale, California (``Lexani''); WTD Inc. of Cerritos, California 
(``WTD''); and Simple Tire of Cookeville, Tennessee (``Simple Tire'') 
(collectively, ``Defaulting Respondents''); and (2) cease and desist 
orders directed against each of the Defaulting Respondents. The 
investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Michael Liberman, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 205-3115. Copies of non-
confidential documents filed in connection with this 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

[[Page 44195]]

Street SW., Washington, DC 20436, telephone (202) 205-2000. General 
information concerning the Commission may also be obtained by accessing 
its Internet server at http://www.usitc.gov. The public record for this 
investigation may be viewed on the Commission's electronic docket 
(EDIS) at http://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 
under section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 
1337, on September 20, 2013, based on a complaint filed by Toyo Tire & 
Rubber Co., Ltd. of Japan; Toyo Tire Holdings of Americas Inc. of 
Cypress, California; Toyo Tire U.S.A. Corp. of Cypress, California; 
Nitto Tire U.S.A. Inc. of Cypress, California; and Toyo Tire North 
America Manufacturing Inc. of White, Georgia (collectively, ``Toyo''). 
The complaint, as supplemented, alleges violation of section 337 by 
reason of infringement of certain claims of U.S. Design Patent Nos. 
D487,424 (``the `424 patent''); D610,975; D610,976 (``the `976 
patent''); D610,977 (``the `977 patent''); D615,031; D626,913 (``the 
`913 patent''); D458,214 (``the `214 patent''); and D653,200 by 
numerous respondents. 78 FR 57882-83 (Sept. 20, 2013). Subsequently, 
the complaint and notice of investigation were amended to add Shandong 
Hengyu Science & Technology Co., Ltd. (``Shandong Hengyu'') as a 
respondent. Several respondents were terminated from the investigation 
based on settlement agreements and consent orders.
    On November 18, 2013, the ALJ ordered certain respondents, 
including WestKY, Tire & Wheel Master, Vittore, and RTM, to show cause 
by December 4, 2013, why they should not be held in default for failing 
to respond to the Complaint and Notice of Investigation. See Order No. 
10 (Nov. 18, 2013). No submissions were filed on behalf of WestKY, Tire 
& Wheel Master, Vittore, or RTM in response to ALJ Order No. 10. On 
December 5, 2013, the ALJ issued an ID finding respondents WestKY, Tire 
& Wheel Master, Vittore, and RTM to be in default. See ALJ Order 17 
(Dec. 5, 2013) (not reviewed on December 27, 2013).
    On December 24, 2013, the ALJ ordered respondents Turbo, Lexani, 
and WTD to show cause by January 10, 2014, why they should not be held 
in default for failing to respond to the Complaint and Notice of 
Investigation. See Order No. 24 (Dec. 24, 2013). No submissions were 
filed in response to ALJ Order No. 24. On February 3, 2014, the ALJ 
issued an ID finding respondents Turbo, Lexani, and WTD to be in 
default. See ALJ Order 30 (Feb. 3, 2014) (not reviewed on March 6, 
2014).
    On January 28, 2014, the ALJ ordered respondent Simple Tire to show 
cause by February 12, 2014, why it should not be held in default for 
failing to respond to the Complaint and Notice of Investigation. See 
Order No. 29 (Jan. 28, 2014). No submissions were filed in response to 
ALJ Order No. 29. On February 18, 2014, the ALJ issued an ID finding 
respondent Simple Tire to be in default. See ALJ Order 34 (Feb. 18, 
2014) (not reviewed on March 20, 2014).
    The Commission found that the statutory requirements of section 
337(g)(1) (19 U.S.C. 1337(g)(1)) and Commission rule 210.16(a) (19 CFR 
210.16(a)) are met with respect to the Defaulting Respondents. 79 FR 
21484-86 (Apr. 16, 2014). Accordingly, pursuant to section 337(g)(1) 
(19 U.S.C. 1337(g)(1)) and Commission rule 210.16(c) (19 CFR 
210.16(c)), the Commission presumes the facts alleged in the[middot] 
complaint to be true and finds that Defaulting Respondents are in 
violation of section 337.
    The Commission requested briefing from the parties and the public 
on the issues of remedy, the public interest, and bonding. 79 FR at 
21484-85. Complainant Toyo and the Commission investigative attorney 
(``IA'') filed timely opening submissions. The IA further filed a 
timely responsive submission on May 2, 2014. Also, two submissions, 
both dated May 2, 2014, were filed on behalf of certain of Defaulting 
Respondents: A ``Reply Submission of Katana Racing, Inc. d/b/a WTD 
Respecting Remedy, the Public Interest and Bonding,'' and a ``Reply 
Submission of Turbo Tire Corporation Respecting Remedy, the Public 
Interest, and Bonding.'' On May 7, 2014, complainant Toyo filed 
``Complainants' Response to the Reply Submissions of Katana Racing, 
Inc. d/b/a WTD, TURBO Tire Corp., and LEXANI, Inc.'' No other 
submissions in response to the Commission notice were received.
    The Commission has determined that the appropriate form of relief 
in this investigation is a limited exclusion order prohibiting the 
unlicensed entry of certain tires and products containing same that are 
manufactured abroad by or on behalf of, or imported by or on behalf of, 
the Defaulting Respondents by reason of infringement of one or more of 
the `424 patent; the `976 patent; the `977 patent; the `913 patent; and 
the `214 patent. The Commission has also determined to issue cease and 
desist orders directed against each of the Defaulting Respondents which 
prohibit, inter alia, the importation, sale, advertising, marketing, 
and distribution of covered products in the United States by the 
Defaulting Respondents. The Commission has further determined that the 
public interest factors enumerated in section 337(g)(l) (19 U.S.C. 
1337(g)(l)) do not preclude issuance of the remedial orders. Finally, 
the Commission has determined that the bond for importation during the 
period of Presidential review shall be in the amount of 100 percent of 
the entered value of the imported subject articles of the Defaulting 
Respondents. The Commission's orders were delivered to the President 
and the United States Trade Representative on the day of their 
issuance.
    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 24, 2014.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2014-17911 Filed 7-29-14; 8:45 am]
BILLING CODE 7020-02-P