Certain Electrolyte Containing Beverages and Labeling and Packaging Thereof (II); Notice of a Commission Determination Finding a Violation of Section 337; Issuance of a General Exclusion Order; Termination of the Investigation
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Abstract
Notice is hereby given that the U.S. International Trade Commission ("Commission") has determined to affirm, with supplemental findings and modified reasoning, an initial determination ("ID") (Order No. 18) of the presiding administrative law judge ("ALJ") granting a motion for summary determination of violation. The Commission has determined to issue a general exclusion order ("GEO") prohibiting the importation of electrolyte containing beverages and labeling and packaging thereof that infringe one or more of U.S. Trademark Registration No. 4,222,726; U.S. Trademark Registration No. 4,833,885; U.S. Trademark Registration No. 4,717,350; and U.S. Trademark Registration No. 4,717,232 (collectively, the "Asserted Trademarks"). The investigation is terminated.
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<title>Federal Register, Volume 91 Issue 60 (Monday, March 30, 2026)</title>
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[Federal Register Volume 91, Number 60 (Monday, March 30, 2026)]
[Notices]
[Pages 15635-15636]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06125]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1435]
Certain Electrolyte Containing Beverages and Labeling and
Packaging Thereof (II); Notice of a Commission Determination Finding a
Violation of Section 337; Issuance of a General Exclusion Order;
Termination of the Investigation
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 affirm, with supplemental
findings and modified reasoning, an initial determination (``ID'')
(Order No. 18) of the presiding administrative law judge (``ALJ'')
granting a motion for summary determination of violation. The
Commission has determined to issue a general exclusion order (``GEO'')
prohibiting the importation of electrolyte containing beverages and
labeling and packaging thereof that infringe one or more of U.S.
Trademark Registration No. 4,222,726; U.S. Trademark Registration No.
4,833,885; U.S. Trademark Registration No. 4,717,350; and U.S.
Trademark Registration No. 4,717,232 (collectively, the ``Asserted
Trademarks''). The investigation is terminated.
FOR FURTHER INFORMATION CONTACT: Edward S. Jou, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202) 205-3316. 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#bbfefff2e888f3ded7cbfbcec8d2cfd895dcd4cd"><span class="__cf_email__" data-cfemail="b8fdfcf1eb8bf0ddd4c8f8cdcbd1ccdb96dfd7ce">[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 this investigation
on February 3, 2025, based upon a complaint, as supplemented (the
``Complaint''), filed on behalf of CAB Enterprises, Inc. of Houston,
Texas; Sueros y Bebidas Rehidratantes, S.A. de C.V. of Guadalajara,
Mexico; Brazos River Ventures LLC of Albany, New York; and Electrolit
Manufacturing USA Inc. of Albany, New York (collectively,
``Complainants''). 90 FR 8811-12 (Feb. 3, 2025). The complaint, as
supplemented, alleges violations of section 337 of the Tariff Act of
1930, as amended (``section 337'') based upon the importation into the
United States, the sale for importation, and the sale within the United
States after importation of certain electrolyte containing beverages
and labeling and packaging thereof by reason of infringement of one or
more of U.S. Trademark Registration No. 4,222,726; U.S. Trademark
Registration No. 4,833,885; U.S. Trademark Registration No. 4,717,350;
and U.S. Trademark Registration No. 4,717,232. Id. The Complaint
further alleges that an industry in the United States exists or is in
the process of being established as required by subsection (a)(2) of
section 337. Id. at 8811.
The Commission's notice of investigation named eight respondents:
Empacadora Torres Mora, S. de R.L. de C.V. of Monterrey, Mexico;
Version Expotaciones, S.R.L. de C.V. of Tijuana, Mexico; Mabed
Distribuciones, S.A. de C.V. of Matamoros, Mexico; Salfe International
Trade, S. de R.L. de C.V. (``Salfe'') of Garza Garcia, Mexico;
Exportadora de Abarrotes del Pacifico, S.A. de C.V. (``Pacifico'') of
Torreon, Mexico; Centro de Distribucion de Carbon Allende, S.A. de C.V.
of Allende, Mexico; Wenceslao Colunga Ruiz (``Ruiz'') of Camargo,
Mexico; and Distribuidora de Productos Heres, S.A. de C.V. (``Heres'')
of Allende, Mexico. Id. at 8812. The Office of Unfair Import
Investigations (``OUII'') is also a party to this investigation. Id.
The investigation was terminated with respect to respondents Ruiz
and Heres based on withdrawal of the complaint. Order No. 7 (Mar. 11,
2025), unreviewed by Comm'n Notice (Apr. 9, 2025).
On April 18, 2025, the ALJ issued an order requiring the remaining
respondents in the investigation to show cause why they should not be
found in default for failure to respond to the complaint and notice of
investigation. Order No. 9 (Apr. 18, 2025). Respondent Pacifico filed
an answer to the Complaint on May 1, 2025, and the investigation was
subsequently terminated with respect to Pacifico based on a consent
order. Order No. 10 (May 23, 2025), unreviewed by Comm'n Notice (June
17, 2025). The investigation was also terminated with respect to
respondent Salfe based on a consent order. Order No. 12 (June 25,
2025), unreviewed by Comm'n Notice (July 14, 2025). The remaining four
[[Page 15636]]
respondents (``Defaulted Respondents'') did not file any response to
the complaint and notice of investigation or to the order to show cause
for failure to do so.
On July 21, 2025, Complainants filed a motion for summary
determination of violation, and on July 22, 2025, Complainants filed a
motion for leave for acceptance of a corrected motion for summary
determination, which was granted pursuant to Order No. 15 (July 22,
2025). On August 4, 2025, OUII filed a response in support of
Complainants' motion.
On September 10, 2025, the ALJ issued the subject ID granting the
motion for summary determination of violation and finding the remaining
four respondents in default. The ID also included a recommended
determination on remedy and bonding. No petitions for review of the ID
were filed.
On December 15, 2025, the Commission determined to review the ID's
findings with respect to the economic prong of the domestic industry
requirement. 90 FR 59203-04. The Commission determined not to review
the other findings in the ID. Id. The Commission requested briefing
from the parties regarding the allocation of certain domestic industry
expenditures and the foreign respondents' alleged domestic inventories
and operations. Id.
On January 5, 2026, Complainants and OUII filed initial submissions
in response to the Commission's notice. On January 12, 2026, OUII filed
a reply submission.
Having reviewed the record of the investigation, including the ID,
the pleadings, and the parties' submissions, the Commission has
determined to affirm the ID's finding that the economic prong of the
domestic industry requirement has been satisfied with supplemental
findings and modified reasoning. Accordingly, as set forth in the
Commission's opinion, the Commission finds a violation of section 337
has occurred.
The Commission has determined that the appropriate remedy is a GEO
prohibiting the unlicensed entry of electrolyte containing beverages
and labeling and packaging thereof that infringe one or more of the
Asserted Trademarks.
Chair Karpel would issue both the GEO and CDOs directed to the
Defaulted Respondents pursuant to section 337(g)(1) because all of the
criteria of subsection 337(g)(1)(A)-(E) are met. The four Defaulted
Respondents were named in the Complaint and served with the Complaint
and notice of investigation. See Order No. 9 (Apr. 18, 2025). The ALJ
issued a show cause order ordering these respondents to show cause why
they should not be held in default for failing to respond to the
Complaint and notice of investigation. Id. None of those respondents
filed a response to the show cause orders. See Order No. 18 at 4,
unreviewed in pertinent part by Notice, 90 FR at 59203-04. These
findings satisfy subsections 337(g)(1)(A)-(D). Complainants requested
CDOs limited to each of these Defaulted Respondents (Id. at 58 (citing
SD Mem. at 67), thus satisfying subsection 337(g)(1)(E). Given that
subsections 337(g)(1)(A)-(E) are satisfied with respect to the
Defaulted Respondents and Complainants requested CDOs directed to these
Defaulted Respondents, the statute directs the Commission to issue the
requested CDOs, subject to consideration of the public interest. Chair
Karpel finds that the public interest factors as detailed in Part V(B)
of the Opinion do not support a finding that the requested GEO and CDOs
would be contrary to the public interest. Accordingly, in addition to
the GEO, Chair Karpel would issue CDOs against the Defaulted
Respondents under section 337(g)(1).
The Commission has determined that the public interest factors
enumerated in subsections (d)(1), (f), and (g)(1) of section 337 do not
preclude the issuance of the GEO. The Commission has further determined
that the bond during the period of Presidential review pursuant to
section 337(j) (19 U.S.C. 1337(j)) shall be set in the amount of one
hundred percent (100%) of the entered value of the articles that are
subject to the GEO. The Commission's remedial orders were delivered to
the President and to the United States Trade Representative on the day
of their issuance. The investigation is hereby terminated.
The Commission vote for this determination took place on March 26,
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.
Issued: March 26, 2026.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2026-06125 Filed 3-27-26; 8:45 am]
BILLING CODE 7020-02-P
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