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`Rhonda K. Schmidtlein
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`UNITED STATES INTERNATIONAL TRADE COMMISSION
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`WASHINGTON, DC 20436
`December 14, 2023
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`CO86-VV-003
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`MEMORANDUM
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`TO: Secretary
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`FROM: Rhonda K. Schmidtlein
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`SUBJECT: Complaint of R.J. Reynolds Tobacco Company and R.J. Reynolds Vapor
`Company Concerning Certain Disposable Vaporizer Devices and Components and
`Packaging Thereof (Docket No. 3700)
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`I support the Commission’s decision today to institute an investigation into
`alleged violations of section 337 of the Tariff Act of 1930, as amended (19 U.S.C. §
`1337), based on the above filed complaint. I also support the decision to decline
`institution as to the cause of action set out in paragraphs 120 through 136 and the
`cause of action set out in paragraphs 326 through 348 of the complaint. I write
`separately, however, because I do not join my colleagues’ decision to decline to
`include in the investigation proposed respondent Shenzhen Pingray Technology
`(“Pingray”). Instead, I find that the complaint and supporting exhibits sufficiently
`allege unfair acts in the importation of accused articles by Pingray to include it as a
`party.
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`Commission Rule 210.12(a)(3) requires the complaint to “[d]escribe specific
`instances of alleged unlawful importations or sales.” 19 C.F.R. § 210.12(a)(3). The
`complaint alleges that Pingray violated section 337 based on Lanham Act and Pact
`Act cause of action instituted today in connection with the accused Esco Bars
`disposable vaping devices. Complaint at ¶ ¶ 137-141; 214-228. Among other things,
`the complaint alleges that Pingray manufactures the accused Esco Bars disposable
`vaping devices, which include product packaging that allegedly contain statements
`that falsely represent that those products do not contain flavoring. Id. at ¶ ¶ 62, 138.
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`The complaint also alleges that Pingray sells for importation, imports, and/or sells
`after importation the accused Esco Bars disposable vaping devices. Id. at ¶ 362.
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`The exhibits provided with the complaint tend to support the complaint’s
`allegation regarding the importation of the accused Esco Bars disposable vaping
`devices. Those exhibits include an FDA import alert document referred to as a “red
`list.” Ex. 14 at 6. The “red list” states that the FDA Center for Tobacco Products
`“has determined” that Pingray “may be importing/manufacturing/shipping a new
`tobacco product (Esco Bar/Escobar) without marketing authorization.” Id. at 6. The
`“red list” states that the FDA “may detain, without physical examination, the tobacco
`products identified” on the list. Id. at 2. In addition, the exhibits include receipts of
`purchase, overseas shipping information, and product packaging marked “Made in
`China” for accused Esco Bars disposable vaping devices. See Exs. 46 and 48.
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` I
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` find that the complaint and the supporting exhibits sufficiently allege unfair
`acts in the importation of the accused articles by Pingray to include it as a respondent
`in the investigation.
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