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`UNITED STATES INTERNATIONAL TRADE COMMISSION
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`Washington, D.C.
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`
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`In the Matter of
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`CERTAIN CASUAL FOOTWEAR AND
`PACKAGING THEREOF
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` Inv. No. 337-TA-1270
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`ORDER NO. 39:
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`INITIAL DETERMINATION GRANTING A JOINT MOTION BY
`CROCS, INC., AND DONGGUAN EASTAR FOOTWEAR
`ENTERPRISES CO., LTD., TO TERMINATE THE
`INVESTIGATION AS TO DONGGUAN EASTAR FOOTWEAR
`ENTERPRISES CO., LTD., BASED UPON A CONSENT ORDER
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`(January 11, 2022)
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`On December 28, 2021, complainant Crocs, Inc. (“Crocs”) and respondent Dongguan
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`Eastar Footwear Enterprises Co., Ltd. (“Eastar”) jointly moved to terminate this investigation as
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`to Eastar based on a consent order. Motion Docket No. 1270-033. The Commission Investigative
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`Staff (“Staff”) filed a response (Staff Resp.) supporting the requested relief on January 4, 2022.
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`No other party responded to the motion.
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`Consistent with Commission Rule 210.21(c)(1)(ii), Crocs and Eastar provided a consent
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`order stipulation and proposed consent order with the pending motion. The consent order
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`stipulation is attached to this initial determination as Exhibit B and the proposed consent order is
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`attached to this initial determination as Exhibit C. Crocs and Eastar have also entered into a
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`settlement agreement. A copy of the settlement agreement is attached to this initial determination
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`as Exhibit A. Consistent with Commission Rule 210.21(b) and (c), Crocs and Eastar provided
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`confidential and public versions of the agreements on which the motion is based. Crocs and Eastar
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`certify that “there are no other agreements, written or oral, express or implied, between
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`Complainant and Eastar concerning the subject matter of this Investigation.” Mot. at 2; see 19
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`C.F.R. § 210.21(c).
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`PUBLIC VERSION
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`Commission Rule 210.21(c)(3) sets forth the requirements for a consent order stipulation.
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`19 C.F.R. § 210.21(c)(3). I have reviewed the consent order stipulation (Exhibit B) and find that
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`it conforms with Commission Rule 210.21(c)(3).
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`Commission Rule 210.21(c)(4) sets forth the requirements for a consent order. 19 C.F.R.
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`§ 210.21(c)(4). I have reviewed the proposed consent order (Exhibit C) and find that it conforms
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`with Commission Rule 210.21(c)(4).
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`Briefing on the motion presents arguments concerning the effect of the proposed consent
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`order on the public interest. Mem. at 2. I am therefore required to consider and make appropriate
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`findings regarding the effect of the proposed settlement on four statutory public interest factors:
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`(1) the public health and welfare, (2) competitive conditions in the United States economy, (3) the
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`production of like or directly competitive articles in the United States, and (4) United States
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`consumers. See 19 U.S.C. § 1337(d)(1); 19 C.F.R. § 210.50(b)(2). Crocs and Eastar argue that
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`“[e]ntering the proposed Consent Order will save administrative resources by removing the need
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`for the Commission to determine whether Respondent Eastar’s activities violate Section 337 as
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`they relate to the Accused Products” and that entry of the proposed consent order “will not impose
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`an undue burden on the public health and welfare, competitive conditions in the U.S. economy,
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`production of like or directly competitive articles in the United States, or U.S. consumers.” Mem.
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`at 2.
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`Staff states it “not aware of any information that would indicate that termination of this
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`investigation as to Eastar on the basis of the Proposed Consent Order would be contrary to the
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`public health and welfare, competitive conditions in the U.S. economy, the production of like or
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`directly competitive articles in the United States, or U.S. consumers.” Staff Resp. at 10.
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`2
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`PUBLIC VERSION
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`Based on the motion papers and the record as a whole, I find that any effect the proposed
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`consent order may have on the statutory public interest factors does not counsel against entry of
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`the order. In addition, I find that termination of the investigation as to Eastar by consent order will
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`preserve Commission resources and avoid unnecessary litigation.
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`Accordingly, it is my initial determination that unopposed joint Motion No. 1270-033 is
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`granted. This investigation is hereby terminated as to respondent Dongguan Eastar Footwear
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`Enterprises Co., Ltd., and all procedural deadlines are stayed as to Eastar pending Commission
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`review of this initial determination.
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`Pursuant to 19 C.F.R. § 210.42(h), this initial determination shall become the determination
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`of the Commission unless a party files a petition for review of the initial determination pursuant
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`to 19 C.F.R. § 210.43(a), or the Commission, pursuant to 19 C.F.R. § 210.44, orders on its own
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`motion a review of the initial determination or certain issues herein.
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`SO ORDERED.
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