USITC Section 337 Investigation into Disposable Vapes

The U.S. International Trade Commission (USITC) has officially initiated an investigation into certain disposable vaporizer devices. This action follows a complaint lodged by RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company, R.J. Reynolds Tobacco Company, and RAI Services Company, all based in Winston-Salem, NC. The complaint, initially filed on June 11, 2024, and supplemented on June 12 and July 1, 2024, alleges violations of section 337 of the Tariff Act of 1930. It accuses various entities of importing and selling disposable vaporizer devices in the United States that infringe on a patent held by the complainants.

The Complaint and Allegations

The complainants have requested that the USITC issue a general exclusion order, or alternatively, a limited exclusion order, alongside cease and desist orders against the infringing parties. The products in question are detailed in the Commission’s notice of investigation.

Respondents Identified

The USITC has named several respondents in this investigation, spanning multiple locations and jurisdictions. The respondents include:

Breeze Smoke LLC, West Bloomfield, MI
Dongguan (Shenzhen) Shikai Technology Co., Ltd., Guangdong Province, China
Vapeonly Technology Co. Ltd., San Po Kong, Kowloon, Hong Kong
iMiracle (Shenzhen) Technology Co. Ltd., Luohu District, Shenzhen, China
Guangdong Qisitech Co., Ltd., Dongguan, Guangdong Province, China
Fewo Intelligent Manufacturing Ltd., Dongguan City, Guangdong Province, China
Nevera (HK) Ltd., San Po Kong, Kowloon, Hong Kong
Guangdong Cellular Workshop Electronics Technology Co., Ltd., Dongguan City, Guangdong Province, China
Wonder Ladies Ltd., Tortola, British Virgin Islands
Sailing South Ltd., Tortola, British Virgin Islands
Marea Morada Ltd., Tortola, British Virgin Islands
Social Brands, LLC, Dallas, TX
Zhuhai Qisitech Co., Ltd., Zhuhai, Guangdong Province, China
Shenzhen Han Technology Co., Ltd., Shenzhen, Guangdong Province, China
Palma Terra Ltd., Tortola, British Virgin Islands
Shenzhen IVPS Technology Co., Ltd., Shenzhen, Guangdong Province, China
Heaven Gifts International Ltd., San Po Kong, Kowloon, Hong Kong
Maduro Distributors d/b/a The Loon, Minneapolis, MN
Bidi Vapor, LLC, Orlando, FL
Kimsun Technology (HuiZhou) Co., Ltd., Shenzhen, Guangdong Province, China
Shenzhen Yanyang Technology Co., Ltd., Shenzhen, Guangdong Province, China
Pastel Cartel, LLC, Austin, TX
American Vape Company, LLC, Pflugerville, TX
Affiliated Imports, LLC, Austin, TX
Shenzhen LC Technology Co., Ltd., Shenzhen, Guangdong Province, China
LCF Labs, Inc., Ontario, CA
Shenzhen Kangvpe Technology Co., Ltd., Bao’an District, Shenzhen, Guangdong Province, China
Flumgio Technology Ltd., Tuen Mun, N.T., Hong Kong
Shenzhen Pingray Technology, Shenzhen, Guangdong Province, China
SV3, LLC d/b/a Mi-One Brands, Phoenix, AZ
Price Point Distributors Inc. d/b/a Price Point NY, Farmingdale, NY
Flawless Vape Shop Inc., Anaheim, CA
Flawless Vape Wholesale & Distribution Inc., Anaheim, CA
TheSy, LLC d/b/a Element Vape, Alhambra, CA
VICA Trading Inc. d/b/a Vapesourcing, Tustin, CA

The Investigation Process

The USITC’s decision to institute this investigation (337-TA-1410) does not imply any conclusions regarding the merits of the case. The Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination on whether there has been a violation of section 337. This initial determination is subject to review by the Commission.

Timeline and Final Determination

The USITC aims to make a final determination in the investigation as quickly as possible. Within 45 days of instituting the investigation, the USITC will set a target date for its completion. Any remedial orders issued by the USITC in section 337 cases become effective immediately upon issuance and become final 60 days after issuance, unless the U.S. Trade Representative disapproves them for policy reasons within that period.

What is a Section 337 Investigation?

A Section 337 investigation is conducted by the USITC to address unfair practices in import trade, including intellectual property infringement, such as patent and trademark violations. These investigations aim to protect U.S. industries from unfair competition arising from imports that violate U.S. intellectual property rights. When a complaint is filed, the USITC evaluates whether there is sufficient evidence to warrant an investigation. If the investigation proceeds, it can result in exclusion orders, preventing the importation of infringing goods, and cease and desist orders, stopping the sale of such products within the U.S.

Source: USITC INSTITUTES SECTION 337 INVESTIGATION OF CERTAIN DISPOSABLE VAPORIZER DEVICES

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.