[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR210.21]

[Page 140-143]
 
                        TITLE 19--CUSTOMS DUTIES
 
                 CHAPTER II--UNITED STATES INTERNATIONAL
                            TRADE COMMISSION
 
PART 210--ADJUDICATION AND ENFORCEMENT--Table of Contents
 
                           Subpart D--Motions
 
Sec. 210.21  Termination of investigations.

    (a) Motions for termination. (1) Any party may move at any time 
prior to the issuance of an initial determination on violation of 
section 337 of the

[[Page 141]]

Tariff Act of 1930 for an order to terminate an investigation in whole 
or in part as to any or all respondents, on the basis of withdrawal of 
the complaint or certain allegations contained therein, or for good 
cause other than the grounds listed in paragraph (a)(2) of this section. 
The presiding administrative law judge may grant the motion in an 
initial determination upon such terms and conditions as he deems proper.
    (2) Any party may move at any time for an order to terminate an 
investigation in whole or in part as to any or all respondents on the 
basis of a settlement, a licensing or other agreement, including an 
agreement to present the matter for arbitration, or a consent order, as 
provided in paragraphs (b), (c) and (d) of this section.
    (b) Termination by Settlement. (1) An investigation before the 
Commission may be terminated as to one or more respondents pursuant to 
section 337(c) of the Tariff Act of 1930 on the basis of a licensing or 
other settlement agreement. A motion for termination by settlement shall 
contain copies of the licensing or other settlement agreement, any 
supplemental agreements, and a statement that there are no other 
agreements, written or oral, express or implied between the parties 
concerning the subject matter of the investigation. If the licensing or 
other settlement agreement contains confidential business information 
within the meaning of Sec. 201.6(a) of this chapter, a copy of the 
agreement with such information deleted shall accompany the motion.
    (2) The motion and agreement(s) shall be certified by the 
administrative law judge to the Commission with an initial determination 
if the motion for termination is granted. If the licensing or other 
agreement or the initial determination contains confidential business 
information, copies of the agreement and initial determination with 
confidential business information deleted shall be certified to the 
Commission simultaneously with the confidential versions of such 
documents. Notice of the initial determination and the agreement shall 
be provided to the U.S. Department of Health and Human Services, the 
U.S. Department of Justice, the Federal Trade Commission, the U.S. 
Customs Service, and such other departments and agencies as the 
Commission deems appropriate. If the Commission's final disposition of 
the initial determination results in termination of the investigation in 
its entirety, a notice will be published in the Federal Register. An 
order of termination by settlement need not constitute a determination 
as to violation of section 337 of the Tariff Act of 1930.
    (c) Termination by entry of consent order. An investigation before 
the Commission may be terminated pursuant to section 337(c) of the 
Tariff Act of 1930 on the basis of a consent order. An order of 
termination by consent order need not constitute a determination as to 
violation of section 337.
    (1) Opportunity to submit proposed consent order--(i) Prior to 
institution of an investigation. Where time, the nature of the 
proceeding, and the public interest permit, any person being 
investigated pursuant to section 603 of the Trade Act of 1974 (19 U.S.C. 
Sec. 2482) shall be afforded the opportunity to submit to the Commission 
a proposal for disposition of the matter under investigation in the form 
of a consent order stipulation that incorporates a proposed consent 
order executed by or on behalf of such person and that complies with the 
requirements of paragraph (c)(3) of this section.
    (ii) Subsequent to institution of an investigation. In 
investigations under section 337 of the Tariff Act of 1930, a proposal 
to terminate by consent order shall be submitted as a motion to the 
administrative law judge with a stipulation that incorporates a proposed 
consent order. If the stipulation contains confidential business 
information within the meaning of Sec. 201.6(a) of this chapter, a copy 
of the stipulation with such information deleted shall accompany the 
motion. The stipulation shall comply with the requirements of paragraph 
(c)(3)(i) of this section. At any time prior to commencement of the 
hearing, the motion may be filed by one or more respondents, and may be 
filed jointly with other parties to the investigation. Upon request and 
for good cause shown, the administrative law judge may consider such a 
motion during or after a hearing. The filing of the motion shall not 
stay proceedings

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before the administrative law judge unless the administrative law judge 
so orders. The administrative law judge shall promptly file with the 
Commission an initial determination regarding the motion for termination 
if the motion is granted. If the initial determination contains 
confidential business information, a copy of the initial determination 
with such information deleted shall be filed with the Commission 
simultaneously with the filing of the confidential version of the 
initial determination. Pending disposition by the Commission of a 
consent order stipulation, a party may not, absent good cause shown, 
withdraw from the stipulation once it has been submitted pursuant to 
this section.
    (2) Commission disposition of consent order. (i) If an initial 
determination granting the motion for termination based on a consent 
order stipulation is filed with the Commission, notice of the initial 
determination and the consent order stipulation shall be provided to the 
U.S. Department of Health and Human Services, the U.S. Department of 
Justice, the Federal Trade Commission, the U.S. Customs Service, and 
such other departments and agencies as the Commission deems appropriate.
    (ii) The Commission, after considering the effect of the settlement 
by consent order upon the public health and welfare, competitive 
conditions in the U.S. economy, the production of like or directly 
competitive articles in the United States, and U.S. consumers, shall 
dispose of the initial determination according to the procedures of 
Secs. 210.42 through 210.45. If the Commission's final disposition of 
the initial determination results in termination of the investigation in 
its entirety, a notice will be published in the Federal Register. An 
order of termination by consent order need not constitute a 
determination as to violation of section 337. Should the Commission 
reverse the initial determination, the parties are in no way bound by 
their proposal in later actions before the Commission.
    (3) Contents of consent order stipulation--(i) Contents. (A) Every 
consent order stipulation shall contain, in addition to the proposed 
consent order, the following:
    (1) An admission of all jurisdictional facts;
    (2) An express waiver of all rights to seek judicial review or 
otherwise challenge or contest the validity of the consent order;
    (3) A statement that the signatories to the consent order 
stipulation will cooperate with and will not seek to impede by 
litigation or other means the Commission's efforts to gather information 
under subpart I of this part; and
    (4) A statement that the enforcement, modification, and revocation 
of the consent order will be carried out pursuant to subpart I of this 
part, incorporating by reference the Commission's Rules of Practice and 
Procedure.
    (B) In the case of an intellectual property-based investigation, the 
consent order stipulation shall also contain--
    (1) A statement that the consent order shall not apply with respect 
to any claim of any intellectual property right that has expired or been 
found or adjudicated invalid or unenforceable by the Commission or a 
court or agency of competent jurisdiction, provided that such finding or 
judgment has become final and nonreviewable; and
    (2) A statement that each signatory to the stipulation who was a 
respondent in the investigation will not seek to challenge the validity 
of the intellectual property right(s), in any administrative or judicial 
proceeding to enforce the consent order.
    (C) The consent order stipulation may contain a statement that the 
signing thereof is for settlement purposes only and does not constitute 
admission by any respondent that an unfair act has been committed.
    (ii) Effect, interpretation, and reporting. The consent order shall 
have the same force and effect and may be enforced, modified, or revoked 
in the same manner as is provided in section 337 of the Tariff Act of 
1930 and this part for other Commission actions. The Commission may 
require periodic compliance reports pursuant to subpart I of this part 
to be submitted by the person entering into the consent order 
stipulation.
    (d) Termination based upon arbitration agreement. Upon filing of a 
motion for

[[Page 143]]

termination with the administrative law judge or the Commission, a 
section 337 investigation may be terminated as to one or more 
respondents pursuant to section 337(c) of the Tariff Act of 1930 on the 
basis of an agreement between complainant and one or more of the 
respondents to present the matter for arbitration. The motion and a copy 
of the arbitration agreement shall be certified by the administrative 
law judge to the Commission with an initial determination if the motion 
for termination is granted. If the agreement or the initial 
determination contains confidential business information, copies of the 
agreement and initial determination with confidential business 
information deleted shall be certified to the Commission with the 
confidential versions of such documents. A notice will be published in 
the Federal Register if the Commission's final disposition of the 
initial determination results in termination of the investigation in its 
entirety. An order of termination based on an arbitration agreement does 
not constitute a determination as to violation of section 337 of the 
Tariff Act of 1930.
    (e) Effect of termination. An order of termination issued by the 
administrative law judge shall constitute an initial determination.

[59 FR 39039, Aug. 1, 1994, as amended at 59 FR 67627, Dec. 30, 1994; 60 
FR 53120, Oct. 12, 1995]