Notice2026-05310
Certain Chocolate Milk Powder and Packaging Thereof; Issuance of Civil Penalties and Termination of Enforcement Proceeding
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Published
March 18, 2026
Issuing agencies
International Trade Commission
Abstract
Notice is hereby given that the U.S. International Trade Commission ("Commission") has determined to impose civil penalties for violating the Commission's cease and desist orders ("CDOs") issued on November 18, 2024 against each of the following four defaulting enforcement respondents as follows: $1.8 million for eighteen (18) days of violation assessed to Organic Ingredients Inc. d/ b/a Namaste Plaza Indian Super Market ("Organic Ingredients") of San Diego, California; $1.6 million for sixteen (16) days of violation assessed to New India Bazar Inc. d/b/a New India Bazar ("New India") of San Jose, California; $200,000 for two (2) days of violation assessed to Bharat Bazar Inc. ("Bharat Bazar") of Union City, California; and $1.7 million for seventeen (17) days of violation assessed to Coconut Hill Inc. d/b/a Coconut Hill ("Coconut Hill") of Sunnyvale, California. The enforcement proceeding is terminated.
Full Text
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<title>Federal Register, Volume 91 Issue 52 (Wednesday, March 18, 2026)</title>
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[Federal Register Volume 91, Number 52 (Wednesday, March 18, 2026)]
[Notices]
[Pages 13066-13068]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05310]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1232 (Enforcement II)]
Certain Chocolate Milk Powder and Packaging Thereof; Issuance of
Civil Penalties and Termination of Enforcement Proceeding
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 impose civil penalties
for violating the Commission's cease and desist orders (``CDOs'')
issued on November 18, 2024 against each of the following four
defaulting enforcement respondents as follows: $1.8 million for
eighteen (18) days of violation assessed to Organic Ingredients Inc. d/
b/a Namaste Plaza Indian Super Market (``Organic Ingredients'') of San
Diego, California; $1.6 million for sixteen (16) days of violation
assessed to New India Bazar Inc. d/b/a New India Bazar (``New India'')
of San Jose, California; $200,000 for two (2) days of violation
assessed to Bharat Bazar Inc. (``Bharat Bazar'') of Union City,
California; and $1.7 million for seventeen (17) days of violation
assessed to Coconut Hill Inc. d/b/a Coconut Hill (``Coconut Hill'') of
Sunnyvale, California. The enforcement proceeding is terminated.
FOR FURTHER INFORMATION CONTACT: Panyin Hughes, Office of the General
Counsel, U.S. International Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202) 205-3042. Copies of non-
confidential documents filed in connection with this investigation may
be viewed on the Commission's electronic docket (EDIS) at <a href="https://edis.usitc.gov">https://edis.usitc.gov</a>. For help accessing EDIS, please email
<a href="/cdn-cgi/l/email-protection#84c1c0cdd7b7cce1e8f4c4f1f7edf0e7aae3ebf2"><span class="__cf_email__" data-cfemail="2b6e6f627818634e475b6b5e58425f48054c445d">[email protected]</span></a>. General information concerning the Commission may
also be obtained by accessing its internet server at <a href="https://www.usitc.gov">https://www.usitc.gov</a>. 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 the original
investigation on December 1, 2020, based on a complaint filed on behalf
of Meenaxi Enterprise Inc. (``Meenaxi'') of Edison, New Jersey. 85 FR
77237-38 (Dec. 1, 2020). The complaint alleged violations of section
337 of the Tariff Act of 1930, 19 U.S.C. 1337, based upon the
importation into the United States, the sale for importation, and the
sale within the United States after importation of certain chocolate
milk powder and packaging thereof by reason of infringement of U.S.
Trademark Registration No. 4,206,026 (``the '026 mark''). The
Commission's notice of investigation named several respondents,
including but not limited to Bharat Bazar; Coconut Hill; New India; and
Organic Food d/b/a Namaste Plaza Indian Super Market (``Organic Food'')
of Fremont, California. Id. at 77237. The Office of Unfair Import
Investigations (``OUII'') was also a party to the investigation. Id.
In the underlying investigation, all respondents were found in
default. See Order No. 6 (Feb. 10, 2021), unreviewed by Comm'n Notice
(Mar. 2, 2021); Order No. 23 (May 19, 2022), unreviewed by Comm'n
Notice (Jun. 14, 2022). On May 24, 2021, Meenaxi moved for summary
determination of violation of section 337 by the respondents found in
default by Order No. 6 and requested a general exclusion order
(``GEO''). On December 1, 2021, the former chief administrative law
judge (``CALJ'') granted the motion as an initial determination
(``ID'') (Order No. 15), but noted discrepancies with respect to
respondent Organic Food, calling into question whether that respondent
was ever properly served with the complaint and notice of investigation
and with the former CALJ's order to show cause why the respondents
should not be found in default, Order No. 5 (Jan. 13, 2021). See Order
No. 15 at 1, n.1. No petitions for review of the ID were filed. The
Commission determined sua sponte to review Order No. 15 and ordered
reconsideration of Order No. 6 as to Organic Food and/or any other
respondents who may not have been properly served with documents in the
underlying investigation. See Comm'n Notice at 3 (Jan. 18, 2022). The
Commission remanded the investigation to an ALJ for further
proceedings. Id.
On remand, the current CALJ issued Order No. 18, granting Meenaxi's
unopposed motion for leave to amend the complaint and notice of
investigation to (i) substitute Organic Food with proposed respondent
Organic Ingredients; (ii) correct the address of respondent New India;
(iii) correct the address of respondent Bharat Bazar; and (iv)
supplement the complaint with Exhibits 9-a, 9-b, and 9-c, concerning
Organic Food and/or Organic Ingredients. Order No. 18 at 1-5 (Mar. 11,
2022), unreviewed by Comm'n Notice (Apr. 12, 2022); see also 87 FR
22940-41 (Apr. 18, 2022). Meenaxi also demonstrated that Bharat Bazar
actually had been served with all of the documents in the investigation
(prior to remand) despite incorrectly spelling Bharat Bazar's address
as being on ``Niled Road'' instead of ``Niles Road.'' See Order No. 18
at 4.
The CALJ conducted remand proceedings as to Organic Ingredients and
New India to respond to the amended complaint and notice of
investigation, and then ordered them to respond to an order to show
cause why they should not be found in default. See Order No. 19 (Mar.
11, 2022); Order No. 21 at 2-3 (May 3, 2022). On May 19, 2022, the CALJ
issued an ID finding Organic Ingredients and New India in default.
Order No. 23 (May 19, 2022), unreviewed by Comm'n Notice (June 14,
2022). Accordingly, the Commission
[[Page 13067]]
found all respondents in default (collectively with the respondents
previously found in default, the ``Defaulting Respondents'').
Subsequently, on June 15, 2022, following the remand determination
of default, Meenaxi again moved for summary determination of violation
by the Defaulting Respondents and requested a GEO. On July 6, 2022,
OUII filed a response supporting the motion.
On August 3, 2022, the CALJ issued a remand ID (``RID'') (Order No.
27), granting the second motion for summary determination and finding a
violation of section 337 with respect to the '026 mark. The RID found
that all Defaulting Respondents met the importation requirement and
that Meenaxi satisfied the domestic industry requirement. See 19 U.S.C.
1337(a)(1)-(3). No party petitioned for review of the ID.
On September 19, 2022, the Commission determined not to review the
RID. See 87 FR 58130-32 (Sept. 23, 2022). On November 15, 2022, the
Commission issued a final determination finding a violation, issuing a
GEO prohibiting the unlicensed importation of chocolate milk powder and
packaging thereof that infringe the '026 mark, and terminating the
investigation. See 87 FR 70864-66 (Nov. 21, 2022). The GEO prohibits
the unlicensed importation of ``chocolate milk powder in consumer-sized
container with the Bournvita label.'' Id. That same day, the Commission
issued an opinion explaining the basis for its final determination.
On November 9, 2023, the Commission determined to institute an
enforcement proceeding (``Enforcement I'') under Commission Rule 210.75
to investigate alleged violations of the GEO by four respondents: (1)
Organic Ingredients; (2) New India; (3) Bharat Bazar; and (4) Coconut
Hill (collectively the ``Enforcement Respondents''). See 88 FR 78786-87
(Nov. 16, 2023); 89 FR 15220 (Mar. 1, 2024). OUII was also named as a
party. Id.
On January 10, 2024, the presiding ALJ issued an order directing
the Enforcement Respondents to show cause why they should not be found
in default and why judgment should not be rendered against them for
failing to respond to the enforcement complaint and notice of
investigation. See Enforcement I, Order No. 6 (Jan. 10, 2024).
Enforcement I, Order No. 6, directed the Enforcement Respondents to
make any showing of good cause by no later than February 2, 2024. Id.
at 3. No party responded to Order No. 6. See Enforcement I, Order No. 8
at 1 (Feb. 13, 2024).
On March 14, 2024, the Commission determined that the four
Enforcement Respondents were in default. See Order No. 8 (Feb. 13,
2024), unreviewed by Comm'n Notice (Mar. 14, 2024). On March 15, 2024,
Meenaxi filed a motion requesting summary determination of violation of
the GEO and the issuance of CDOs against the four Enforcement
Respondents. See Enforcement I, Initial Determination (``EID-1'') at 5.
On August 16, 2024, the ALJ granted Meenaxi's motion and
recommended issuance of CDOs. See Enforcement I, Order No. 9 (Aug. 16,
2024). On November 18, 2024, the Commission issued a final
determination finding that all four Enforcement Respondents had
violated the GEO and issued CDOs against each of the four Enforcement
Respondents. 89 FR 92,722-723 (Nov. 22, 2024).
On February 24, 2025, Meenaxi filed a complaint requesting that the
Commission institute a second enforcement proceeding to investigate
alleged violations of the GEO and CDOs by the same four Enforcement
Respondents: (1) Organic Ingredients; (2) New India; (3) Bharat Bazar;
and (4) Coconut Hill Inc. See EID at 5. On March 26, 2025, the
Commission determined to institute an enforcement proceeding under
Commission Rule 210.75 to investigate alleged violations of the GEO and
CDOs by the four Enforcement Respondents. See 90 FR 14,381-382 (Apr. 1,
2025). OUII is also named as a party. Id. Meenaxi filed proof that the
notice and enforcement complaint were served on each of the four
Enforcement Respondents. See July 29, 2025 Letter from Anil Gandhi to
Secretary Barton, EDIS Doc. ID 857933.
On May 9, 2025, the ALJ issued an order directing the Enforcement
Respondents to show cause why they should not be found in default and
why judgment should not be rendered against them for failing to respond
to the second enforcement complaint and notice of investigation.
Enforcement II, Order No. 5 (May 9, 2025). Order No. 5 directed the
Enforcement Respondents to make any showing of good cause by no later
than June 13, 2025. Id. at 3. No party responded to Order No. 5, the
show-cause order. Meenaxi filed proof that Order No. 5 was served on
each of the four Enforcement Respondents. See May 19, 2025 Letter from
Anil Gandhi to Secretary Barton, EDIS Doc. ID 851448, 851447. On July
15, 2025, the Commission determined that the four Enforcement
Respondents were in default. Order No. 6 (June 16, 2025), unreviewed by
Comm'n Notice (July 15, 2025). Meenaxi filed proof that Order No. 6 was
served on each of the four Enforcement Respondents. See July 29, 2025
Letter from Anil Gandhi to Secretary Barton, EDIS Doc. ID 857933.
On July 10, 2025, Meenaxi filed a motion for summary determination
of violation of the GEO and CDOs by the four Enforcement Respondents
and requested issuance of civil penalties against the four Enforcement
Respondents. See EID at 6. Meenaxi argued that the Enforcement
Respondents have violated the Commission's GEO and CDOs by continuing
to import, sell for importation, advertise, market, distribute, offer
to sell, and sell the ``Bournvita'' products that infringe the '026
mark. EID at 18.
On December 15, 2025, the presiding ALJ issued the subject EID
(Order No. 9), granting Meenaxi's motion and recommending issuance of
the requested civil penalties. The ALJ concluded that the unrebutted
evidence demonstrates that the Enforcement Respondents have imported
and/or sold after importation chocolate milk powder products bearing
the ``Bournvita'' label in violation of the GEO and CDOs. The ALJ
recommended that the Commission issue civil penalties against the four
defaulting enforcement respondents. No party filed a petition seeking
review of EID.
On January 27, 2026, the Commission determined not to review the
EID and requested briefing on the recommended remedy. 81 FR 4108-110
(Jan. 30, 2026).
Having examined the record in this enforcement proceeding,
including the EID/RD and the parties' submissions, the Commission has
determined to impose a penalty of $100,000, the maximum available in
this investigation, for each day that each of the four defaulting
Enforcement Respondents violated the respective CDOs. The resulting
penalties are as follows: $1.8 million for eighteen (18) days of
violation assessed to Organic Ingredients; $1.6 million for sixteen
(16) days of violation assessed to New India; $200,000 for two (2) days
of violation assessed to Bharat Bazar; and $1.7 million for seventeen
(17) days of violation assessed to Coconut Hill. The enforcement
proceeding is hereby terminated.
The Commission's vote on this determination took place on March 16,
2026.
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.
[[Page 13068]]
Issued: March 16, 2026.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2026-05310 Filed 3-17-26; 8:45 am]
BILLING CODE 7020-02-P
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