Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 7966-7967 [2019-03935]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 84, Number 43 (Tuesday, March 5, 2019)]
[Notices]
[Pages 7966-7967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03935]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Modification of Section 301 Action: 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 modification of action.

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SUMMARY: In accordance with the direction of the President, the U.S. 
Trade Representative (Trade Representative) has determined to modify 
the action being taken in this Section 301 investigation by postponing 
the date on which the rate of the additional duties will increase to 25 
percent for the products of China covered by the September 2018 Action 
in this investigation. The rate of additional duty for the products 
covered by the September 2018 action will remain at 10 percent until 
further notice.

DATES: The rate of additional duty will remain at 10 percent with 
respect to products covered by the September 2018 action until further 
notice.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
contact Associate General Counsel Arthur Tsao, Assistant General 
Counsel Megan Grimball, or Director of Industrial Goods Justin Hoffmann 
at (202) 395-5725. For questions on customs classification or 
implementation of additional duties on products covered by the 
September 2018 action, contact traderemedy@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION:

A. September 2018 Action

    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 33608 (July 17, 2018), 83 FR 38760 (August 7, 2018), and 
83 FR 40823 (August 16, 2018).
    In a notice published on September 21, 2018 (83 FR 47974), the 
Trade Representative, at the direction of the President, announced a 
determination to modify the action being taken in the investigation by 
imposing additional duties on products of China with an annual trade 
value of approximately $200 billion. The rate of additional duties 
initially was 10 percent. Those additional duties were effective 
starting on September 24, 2018, and currently are in effect. Under 
Annex B of the September 21 notice, the rate of additional duty was set 
to increase to 25 percent on January 1, 2019. In the September 21 
notice, the Trade Representative stated that he would continue to 
consider the actions taken in this investigation, and if further 
modifications were appropriate, he would take into account the 
extensive public comments and testimony previously provided in response 
to the notices published on July 17, 2018 (83 FR 33608) and August 7, 
2018 (83 FR 38760).
    On September 28, 2018 (83 FR 49153), the Trade Representative 
issued a conforming amendment and modification of the September 21 
action. The current notice refers to the September 21 action, as 
modified by the September 28 notice, as the ``September 2018 action.''
    On December 19, 2018 (83 FR 65198), in accordance with the 
direction of the President, the Trade Representative determined to 
modify the September 2018 action by postponing until March 2, 2019, the 
increase in the rate of the additional duty to 25 percent. The Annex to 
the December 19 notice, which superseded Annex B to the September 21 
notice, amended the HTSUS to reflect this postponement of the increase 
in the rate of duty applicable to the September 2018 action.

B. Determination To Further Modify September 2018 Action

    The United States is engaging with China with the goal of obtaining 
the elimination of the acts, policies, and practices covered in the 
investigation. The leaders of the United States and China met on 
December 1, 2018, and agreed to hold negotiations on a range of issues, 
including those covered in this Section 301 investigation. See https://
www.whitehouse.gov/briefings-statements/statement-press-secretary-
regarding-presidents-working-dinner-

[[Page 7967]]

china/. Since the meeting on December 1, the United States and China 
have engaged in additional rounds of negotiation on these issues. In 
light of progress in discussions with China, on February 24, 2019, the 
President directed the Trade Representative to postpone the increase in 
tariffs scheduled for March 2, 2019.
    Section 301(b) of the Trade Act of 1974, as amended (Trade Act), 
provides that the Trade Representative ``shall take all appropriate and 
feasible action authorized under [Section 301(c)] to obtain the 
elimination of [the] act, policy, or practice [under investigation].'' 
Section 307(a)(1) of the Trade Act authorizes the Trade Representative 
to modify or terminate any action being taken under Section 301, 
subject to the specific direction, if any, of the President if ``the 
burden or restriction on United States commerce . . . of the acts, 
policies, and practices, that are the subject of such action has 
increased or decreased, or such action is being taken under Section 
[301(b)] of this title and is no longer appropriate.'' In light of 
progress of the additional rounds of negotiations since December 2018, 
and at the direction of the President, the Trade Representative has 
determined that it no longer is appropriate for the rate of duty under 
the September 2018 action to increase to 25 percent on March 2, 2019, 
and that the rate of duty under the September 2018 action will remain 
at 10 percent until further notice.
    The Trade Representative's decision to modify the September 2018 
action takes into account the extensive public comments and testimony, 
as well as advice from advisory committees, concerning the actions 
proposed in the notices issued in advance of the September 2018 action 
(83 FR 33608 and 83 FR 38760). Those notices, among other things, 
requested comments on whether the rate of additional duties should be 
10 percent or 25 percent. The Trade Representative's decision also 
reflects the advice of the interagency Section 301 Committee.
    To effectuate the Trade Representative's decision, Annex B of the 
September 21 notice (83 FR 47974) and the Annex to the December 19 
notice (83 FR 65198), hereby are rescinded. In accordance with Annex A 
of the September 21 notice, the rate of duty under the September 2018 
action will remain at 10 percent until further notice.

Stephen P. Vaughn,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2019-03935 Filed 3-4-19; 8:45 am]
BILLING CODE 3290-F9-P