[Federal Register Volume 84, Number 211 (Thursday, October 31, 2019)]
[Notices]
[Pages 58427-58435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23751]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2019-0019]


Request for Comments Concerning the Extension of Particular 
Exclusions Granted Under the December 2018 Product Exclusion Notice 
From the $34 Billion Action Pursuant to Section 301: China's Acts, 
Policies, and Practices Related to Technology Transfer, Intellectual 
Property, and Innovation

AGENCY: Office of the United States Trade Representative.

ACTION: Notice and request for comments.

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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 
granted an initial set of exclusions in December 2018. The exclusions 
granted in December 2018 are set to expire on December 28, 2019. The 
U.S. Trade Representative has decided to consider extending particular 
exclusions granted in December 2018 for up to twelve months. The Office 
of the U.S. Trade Representative (USTR) invites public comment on 
whether to extend particular exclusions.

DATES: 
    November 1, 2019 at noon EDT: Docket Number USTR-2019-0019 will 
open for comments on the possible extension of particular exclusions.
    November 30, 2019 at 11:59 p.m. EDT: To be assured of 
consideration, submit written comments by November 30, 2019.

ADDRESSES: Submit comments through the Federal eRulemaking Portal: 
http://www.regulations.gov. The Docket Number is USTR-2019-0019. USTR 
strongly encourages all commenters to use Form A to submit comments. If 
applicable, you must submit Form B, which requests Business 
Confidential Information (BCI)), along with a copy of the corresponding 
Form A, via email to [email protected]. See the submission 
instructions below.

FOR FURTHER INFORMATION CONTACT: Assistant General Counsels Philip 
Butler or Benjamin Allen (202) 395-5725.

SUPPLEMENTARY INFORMATION: 

A. Background

    For background on the proceedings in this investigation, please see 
the prior notices issued in the investigation, 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), and 83 FR 67463 (December 28, 
2018).
    Effective July 6, 2018, the U.S. Trade Representative imposed 
additional 25 percent duties on goods of China classified in 818 8-
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 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 8-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).
    The July 11 notice required submission of requests for exclusion 
from the $34 billion action no later than October 9, 2018, and noted 
that the U.S. Trade Representative periodically would announce 
decisions. In December 2018, the U.S. Trade Representative granted an 
initial set of exclusion requests. See 83 FR 67463 (December 28, 2018) 
(December 2018 notice). These exclusions are set to expire on December 
28, 2019.

B. Possible Extensions of Particular Product Exclusions

    The U.S. Trade Representative is considering a possible extension 
of particular exclusions granted in the December 2018 notice for up to 
twelve months. USTR invites public comments on whether to extend 
particular exclusions granted in the December 2018 notice. At this 
time, USTR is not considering comments concerning possible extensions 
of exclusions granted under any other product exclusion notice.
    USTR will evaluate the possible extension of each exclusion on a 
case-by-case basis. The focus of the evaluation will be whether, 
despite the first imposition of these additional duties in July 2018, 
the particular product remains available only from China. In addressing 
this factor, commenters should address specifically:
     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.
     The efforts, if any, the importers or U.S. purchasers have 
undertaken since July 2018 to source the product from the United States 
or third countries.

    In addition, USTR will continue to consider whether the imposition 
of additional duties on the products covered by the exclusion will 
result in severe economic harm to the commenter or other U.S. 
interests.
    USTR strongly encourages commenters to complete Form A, which USTR 
will post on its website before the docket opens, and submit the 
completed Form A through http://www.regulations.gov. The docket number 
is USTR-2019-0019. USTR will post completed Form A's on the public 
docket.
    In addition to submitting Form A through regulations.gov, 
commenters who are importers and/or purchasers of the products covered 
by the exclusion should complete Form B, which USTR will post on its 
website before the docket opens. Form B requests BCI information, and 
will not be posted on the public docket. Submit Form B, along with a 
copy of the completed Form A, via email to 
[email protected].
    Facsimiles of Form A and Form B are in the Annex to this notice and 
will be available electronically at: https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china/34-billion-trade-action.
    Set forth below is a summary of the information to be entered on 
Form A:
     Contact information, including the full legal name of the 
organization making the comment, whether the commenter is a third party 
(e.g., law firm, trade association, or customs broker) submitting on 
behalf of an organization or industry, and the primary point of contact 
(commenter and/or third party submitter).

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     The publication date of the Federal Register notice 
containing the exclusion on which you are commenting. Since USTR at 
this time is only considering exclusions granted by the December 28, 
2018 notice, this field must specify December 28, 2018.
     The full article description for the exclusion you are 
commenting on and the 10-digit code, as provided in the Federal 
Register notice granting the exclusion. Please indicate if the 
exclusion is a 10-digit HTSUS code covering all products under a single 
10-digit HTSUS number.
     Whether the product or products covered by the exclusion 
are subject to an antidumping or countervailing duty order issued by 
the U.S. Department of Commerce.
     Whether you support or oppose extending the exclusion and 
an explanation of your rationale. Commenters must provide a public 
version of their rationale, even if the commenter also is submitting a 
Form B with more detailed, confidential information.
     Whether the products covered by the exclusion or 
comparable products are available from sources in the U.S. or in third 
countries. Please include information concerning any changes in the 
global supply chain since July 2018 with respect to the particular 
product.
     Whether the commenter will be submitting Form B.
    As indicated above, information submitted on Form B will not be 
publically available. Form B requires commenters who are importers and/
or purchasers of the products covered by the exclusion to provide the 
following information:
     The efforts you have undertaken 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, the first 
half of 2018, and the first half of 2019, and whether these purchases 
are from a related company, and if so, the name of and relationship to 
the 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, 
the first half of 2018 and the first half of 2019.
     If applicable, the commenter's gross revenue for 2018, the 
first half of 2018, and the first half of 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.
     Any additional information in support or in opposition of 
the extending the exclusion.
    Commenters also may provide any other information or data that they 
consider relevant.

C. Submission Instructions

    To be assured of consideration, commenters must submit their 
comments between the opening of the docket on November 1, 2019 and the 
November 30, 2019 submission deadline. By submitting a comment, the 
commenter certifies that the information provided is complete and 
correct to the best of his or her knowledge.

D. Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (PRA) and its implementing regulations, USTR submitted a 
request to the Office of Management and Budget (OMB) for emergency 
review and clearance of this information collection request (ICR) 
titled 301 Exclusion Requests. OMB assigned control number 0350-0015, 
which is due to expire on December 31, 2019. USTR issued notice and 
requested comments regarding its intent to seek approval of a three-
year extension of the control number for the information request on 
August 22, 2019. 84 FR 43853.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
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[FR Doc. 2019-23751 Filed 10-30-19; 8:45 am]
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