[Federal Register Volume 85, Number 132 (Thursday, July 9, 2020)]
[Notices]
[Pages 41267-41271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14833]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Product Exclusion Extensions: China's Acts, Policies,
and Practices Related to Technology Transfer, Intellectual Property,
and Innovation
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of product exclusion extensions.
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SUMMARY: Effective July 6, 2018, the U.S. Trade Representative imposed
additional duties on goods of China with an annual trade value of
approximately $34 billion as part of the action in the Section 301
investigation of China's acts, policies, and practices related to
technology transfer, intellectual property, and innovation. The U.S.
Trade Representative initiated the exclusion process in July 2018 and,
to date, has granted 10 sets of exclusions under the $34 billion
action. The sixth set of exclusions was published in July 2019 and will
expire in July 2020. On April 30, 2020, the U.S. Trade Representative
established a process for the public to comment on whether to extend
particular exclusions granted in July 2019 for up to 12 months. This
notice announces the U.S. Trade Representative's determination to
extend certain exclusions through December 31, 2020.
DATES: The product exclusion extensions announced in this notice will
apply as of July 9, 2020, and extend through December 31, 2020. U.S.
Customs and Border Protection will issue instructions on entry guidance
and implementation.
FOR FURTHER INFORMATION CONTACT: For general questions about this
notice, contact Assistant General Counsels Philip Butler or Benjamin
Allen, or Director of Industrial Goods Justin Hoffmann at (202) 395-
5725. For specific questions on customs classification or
implementation of the product exclusions identified in the Annex to
this notice, contact [email protected].
SUPPLEMENTARY INFORMATION:
A. Background
For background on the proceedings in this investigation, please see
prior notices including: 82 FR 40213 (August 23, 2017), 83 FR 14906
(April 6, 2018), 83 FR 28710 (June 20, 2018), 83 FR 32181 (July 11,
2018), 83 FR 67463 (December 28, 2018), 84 FR 11152 (March 25, 2019),
84 FR 16310 (April 18, 2019), 84 FR 21389 (May 14, 2019), 84 FR 25895
(June 4, 2019), 84 FR 32821
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(July 9, 2019), 84 FR 43304 (August 20, 2019), 84 FR 46212 (September
3, 2019), 84 FR 49564 (September 20, 2019), 84 FR 52567 (October 2,
2019), 84 FR 58427 (October 31, 2019), 84 FR 70616 (December 23, 2019),
84 FR 72102 (December 30, 2019), 85 FR 6687 (February 5, 2020), 85 FR
12373 (March 2, 2020), 85 FR 16181 (March 20, 2020), 85 FR 24081 (April
30, 2020), 85 FR 33775 (June 2, 2020), and 85 FR 34274 (June 3, 2020).
Effective July 6, 2018, the U.S. Trade Representative imposed
additional 25 percent duties on goods of China classified in 818 eight-
digit subheadings of the Harmonized Tariff Schedule of the United
States (HTSUS), with an approximate annual trade value of $34 billion.
See 83 FR 28710 (the $34 billion action). The U.S. Trade
Representative's determination included a decision to establish a
process by which U.S. stakeholders could request exclusion of
particular products classified within an eight-digit HTSUS subheading
covered by the $34 billion action from the additional duties. The U.S.
Trade Representative issued a notice setting out the process for the
product exclusions and opened a public docket. See 83 FR 32181 (the
July 11 notice).
In July 2019, the U.S. Trade Representative granted a set of
exclusion requests, which expire on July 9, 2020. See 84 FR 32821 (the
July 9 notice). On April 30, 2020, the U.S. Trade Representative
invited the public to comment on whether to extend by up to 12 months,
particular exclusions granted in the July 9 notice. See 85 FR 24081
(the April 30 notice).
Under the April 30 notice, commenters were asked to address whether
the particular product and/or a comparable product is available from
sources in the United States and/or in third countries; any changes in
the global supply chain since July 2018 with respect to the particular
product, or any other relevant industry developments; and efforts, if
any, importers or U.S. purchasers have undertaken since July 2018 to
source the product from the United States or third countries.
In addition, commenters who were importers and/or purchasers of the
products covered by an exclusion were asked to provide information
regarding their efforts since July 2018 to source the product from the
United States or third countries; the value and quantity of the
Chinese-origin product covered by the specific exclusion request
purchased in 2018 and 2019, and whether these purchases are from a
related company; whether Chinese suppliers have lowered their prices
for products covered by the exclusion following the imposition of
duties; the value and quantity of the product covered by the exclusion
purchased from domestic and third country sources in 2018 and 2019; the
commenter's gross revenue for 2018 and 2019; whether the Chinese-origin
product of concern is sold as a final product or as an input; whether
the imposition of duties on the products covered by the exclusion will
result in severe economic harm to the commenter or other U.S.
interests; and any additional information in support or in opposition
of the extending the exclusion.
The April 30 notice required the submission of comments no later
than June 1, 2020.
B. Determination To Extend Certain Exclusions
Based on evaluation of the factors set out in the July 11 notice
and April 30 notice, which are summarized above, pursuant to sections
301(b), 301(c), and 307(a) of the Trade Act of 1974, as amended, and in
accordance with the advice of the interagency Section 301 Committee,
the U.S. Trade Representative has determined to extend certain product
exclusions covered by the July 9 notice, as set out in the Annex to
this notice.
The April 30 notice provided that the U.S. Trade Representative
would consider extensions of up to 12 months. In light of the
cumulative effect of current and possible future exclusions or
extensions of exclusions on the effectiveness of the action taken in
this investigation, the U.S. Trade Representative has determined to
extend the exclusions in the Annex to this notice for less than 12
months--through December 31, 2020. To date, the U.S. Trade
Representative has granted more than 6,200 exclusion requests, has
extended some of these exclusions, and may consider further extensions
of exclusions. More than 6,500 requests are pending on the products
covered by the action taken on August 20, 2019. The U.S. Trade
Representative will take account of the cumulative effect of exclusions
in considering the possible further extension of the exclusions covered
by this notice, as well as possible extensions of exclusions of other
products covered by the action in this investigation. The U.S. Trade
Representative's determination also takes into account advice from
advisory committees and any public comments concerning extension of the
pertinent exclusion.
In accordance with the July 11 notice, the exclusions are available
for any product that meets the description in the Annex, regardless of
whether the importer filed an exclusion request. Further, the scope of
each exclusion is governed by the scope of the ten-digit HTSUS headings
and product descriptions in the Annex to this notice, and not by the
product descriptions set out in any particular request for exclusion.
As set out in the Annex, the U.S. Trade Representative has
determined to extend, through December 31, 2020, the following
exclusions granted under the July, 2019 notice under heading 9903.88.11
and under U.S. note 20(n) to subchapter III of chapter 99 of the HTSUS:
(8), (17), (18), (23), (28), (77), (85), (87), (88), (97), (98), and
(106).
Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
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[FR Doc. 2020-14833 Filed 7-8-20; 8:45 am]
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