Notice of Modification of Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 45821-45823 [2019-18838]
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Federal Register / Vol. 84, No. 169 / Friday, August 30, 2019 / Notices
The earliest this transaction may be
consummated is September 15, 2019.1
If the verified notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions for stay must
be filed no later than September 6, 2019
(at least seven days before the
exemption becomes effective).
All pleadings, referring to Docket No.
FD 36321, must be filed with the
Surface Transportation Board either via
e-filing or in writing addressed to 395 E
Street SW, Washington, DC 20423–0001.
In addition, a copy of each pleading
must be served on ALE’s
representatives: Eric M. Hocky, Clark
Hill, PLC, One Commerce Square, 2005
Market Street, Suite 1000, Philadelphia,
PA 19103, and Sloane S. Carlough,
Clark Hill PLC, 1001 Pennsylvania
Avenue NW, Suite 1300 South,
Washington, DC 20004.
According to ALE, this action is
excluded from environmental review
under 49 CFR 1105.6(c) and from
historic preservation reporting
requirements under 49 CFR 1105.8(b).
Board decisions and notices are
available at www.stb.gov.
Decided: August 27, 2019.
By the Board, Allison C. Davis, Director,
Office of Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019–18808 Filed 8–29–19; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36320]
Mississippi Export Railroad
Company—Continuance in Control
Exemption—Alabama Export Railroad,
Inc.
jspears on DSK3GMQ082PROD with NOTICES
Mississippi Export Railroad Company
(MSE), a Class III rail carrier, has filed
a verified notice of exemption under 49
CFR 1180.2(d)(2) to continue in control
of Alabama Export Railroad, Inc. (ALE),
1 The verified notices in Docket Nos. FD 36320
and FD 36321 were initially submitted on August
12, 2019. On August 16, 2019, MSE filed a
supplement in Docket No. FD 36320 certifying that
MSE and ALE are the only two railroads in the
corporate family. In light of that supplement,
August 16, 2019, is deemed the filing date of the
verified notice for continuance in control in Docket
No. FD 36320, and that exemption’s effective date
is September 15, 2019. Because this lease and
operation exemption requires the concurrent
authority for MSE to continue in control of ALE, the
effective date of this exemption likewise will be
September 15, 2019.
VerDate Sep<11>2014
16:43 Aug 29, 2019
Jkt 247001
upon ALE’s becoming a Class III rail
carrier. ALE is a newly formed
noncarrier entity that is wholly owned
by MSE.1
This transaction is related to a
concurrently filed verified notice of
exemption in Alabama Export
Railroad—Lease & Operation
Exemption—Illinois Central Railroad,
Docket No. FD 36321. In that
proceeding, ALE seeks an exemption
under 49 CFR 1150.31 to lease and
operate approximately 12.1 miles of
railroad line in downtown Mobile, Ala.,
owned by IC. The rail line extends
between Belt Junction at milepost 6.6
and the State Docks at milepost 0.0 on
IC’s Beaumont Subdivision, and
between Belt Junction at milepost 6.6
and Frascati Junction at milepost 1.1 on
IC’s Frascati Lead (the Line).
The earliest this transaction may be
consummated is September 15, 2019,
the effective date of the exemption.2
According to MSE, it currently owns
and operates a 42-mile short line
railroad between Evanston and
Pascagoula, Miss. In its verified notice
and supplement, MSE represents that:
(1) The Line to be operated by ALE does
not connect with the lines of MSE, and
the railroads would not connect with
any railroads in their corporate family;
(2) the transaction is not part of a series
of anticipated transactions that would
connect these railroads with each other
or with any railroad in their corporate
family; and (3) the transaction does not
involve a Class I rail carrier. The
proposed transaction is therefore
exempt from the prior approval
requirements of 49 U.S.C. 11323. See 49
CFR 1180.2(d)(2).
Under 49 U.S.C. 10502(g), the Board
may not use its exemption authority to
relieve a rail carrier of its statutory
obligation to protect the interests of its
employees. Section 11326(c), however,
does not provide for labor protection for
transactions under sections 11324 and
11325 that involve only Class III rail
carriers. Accordingly, the Board may not
impose labor protective conditions here
because only Class III carriers are
involved.
If the notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
1 MSE
states that it, in turn, is owned in part (onethird interest) by Illinois Central Railroad Company
(IC) and in part (two-thirds interest) by various
individual shareholders.
2 The verified notice was initially submitted on
August 12, 2019. On August 16, 2019, MSE filed a
supplement certifying that MSE and ALE are the
only two railroads in the corporate family. In light
of that supplement, August 16, 2019, is deemed the
filing date of the verified notice.
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
45821
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions to stay must be
filed no later than September 6, 2019 (at
least seven days before the exemption
becomes effective).
All pleadings, referring to Docket No.
FD 36320, must be filed with the
Surface Transportation Board either via
e-filing or in writing addressed to 395 E
Street SW, Washington, DC 20423–0001.
In addition, a copy of each pleading
must be served on MSE’s representative:
Eric M. Hocky, Clark Hill, PLC, One
Commerce Square, 2005 Market Street,
Suite 1000, Philadelphia, PA 19103, and
Sloane S. Carlough, Clark Hill PLC,
1001 Pennsylvania Avenue NW, Suite
1300 South, Washington, DC 20004.
According to MSE, this action is
excluded from environmental review
under 49 CFR 1105.6(c) and from
historic preservation reporting
requirements under 49 CFR 1105.8(b).
Board decisions and notices are
available at www.stb.gov.
Decided: August 27, 2019.
By the Board, Allison C. Davis, Director,
Office of Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019–18807 Filed 8–29–19; 8:45 am]
BILLING CODE 4915–01–P
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
Office of the United States
Trade Representative.
ACTION: Notice of modification of action.
AGENCY:
In accordance with the
specific direction of the President, the
U.S. Trade Representative has
determined to modify the action being
taken in this Section 301 investigation
by increasing the rate of additional duty
from 10 to 15 percent for the products
of China covered by the $300 billion
tariff action published on August 20,
2019.
SUMMARY:
For products covered by Annex
A of the August 20, 2019 notice (84 FR
43304), the rate of additional duty will
be 15 percent on the current effective
date of September 1, 2019. For products
covered by Annex C of the August 20
notice, the rate of additional duty will
be 15 percent on the current effective
date of December 15, 2019.
DATES:
E:\FR\FM\30AUN1.SGM
30AUN1
45822
Federal Register / Vol. 84, No. 169 / Friday, August 30, 2019 / Notices
For
questions about this action, contact
Associate General Counsel Arthur Tsao
or 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 identified in the Annexes to
this notice, contact traderemedy@
cbp.dhs.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
jspears on DSK3GMQ082PROD with NOTICES
A. Prior Determinations in the
Investigation
On August 18, 2017, the U.S. Trade
Representative initiated an investigation
into certain acts, policies, and practices
of the Government of China related to
technology transfer, intellectual
property, and innovation. 82 FR 40213
(August 23, 2017). In April 2018, the
U.S. Trade Representative published a
notice of a determination that the acts,
policies, and practices of China under
investigation are unreasonable or
discriminatory and burden or restrict
U.S. commerce, and are thus actionable
under Section 301(b) of the Trade Act of
1974, as amended (Trade Act). 83 FR
14906 (April 6, 2018).
Up through early May 2019, the U.S.
Trade Representative, at the direction of
the President, determined to take
actions resulting in the imposition of an
additional 25 percent ad valorem duty
on products of China with an aggregate
annual trade value of approximately
$250 billion in order to obtain the
elimination of China’s acts, policies,
and practices covered in the
investigation. As explained in prior
notices, the actions do not relate to
China’s acts, policies, and practices
involving technology licensing, which
are being addressed separately in a
WTO dispute settlement proceeding.
The U.S. Trade Representative
imposed these additional duties in three
tranches. Tranche 1 covered 818 tariff
subheadings, with an approximate
annual trade value of $34 billion. See 83
FR 28710 (June 20, 2018). Tranche 2
covered 279 tariff subheadings, with an
approximate annual trade value of $16
billion. See 83 FR 40823 (August 16,
2018). Tranche 3 covered 5,733 tariff
subheadings, with an approximate
annual trade value of $200 billion. See
83 FR 47974 (September 21, 2018); 83
FR 49153 (September 28, 2018); and 84
FR 20459 (May 9, 2019).
As of mid-May 2019, China’s
statements and conduct indicated that
action at a $250 billion level was
insufficient to obtain the elimination of
China’s unfair and harmful policies.
Accordingly, the President directed the
VerDate Sep<11>2014
16:43 Aug 29, 2019
Jkt 247001
U.S. Trade Representative to consider a
possible modification of the action
being taken in the form of additional
duties of up to 25 percent on products
of China with an annual aggregate trade
value of approximately $300 billion. In
a notice published on May 17, 2019 (84
FR 22564), the Office of the United
States Trade Representative invited
public comments and announced a
public hearing with regard to the
possible imposition of additional duties
of up to 25 percent on a specific list of
tariff subheadings with an approximate
annual trade value of $300 billion. The
notice and comment process concluded
in early July 2019.
In August 2019, the U.S. Trade
Representative, at the direction of the
President, determined to modify the
action being taken in the investigation
by imposing an additional 10 percent ad
valorem duty on products of China with
an annual aggregate trade value of
approximately $300 billion. 84 FR
43304 (August 20, 2019). The August 20
notice contains two separate lists of
tariff subheadings, with two different
effective dates. List 1, which is set out
in Annex A of the August 20 notice, is
effective September 1, 2019. List 2,
which is set out in Annex C of the
August 20 notice, is effective December
15, 2019.
B. Modification of Action
The Section 301 statute (set out in
Sections 301 to 308 of the Trade Act)
(19 U.S.C. 2411–2418) includes
authority for the U.S. Trade
Representative to modify the action
being taken in an investigation. In
particular, Section 307(a)(1) authorizes
the U.S. Trade Representative to modify
or terminate any action 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 the
action has increased or decreased, or the
action is being taken under Section
301(b) and is no longer appropriate.
The burden or restriction on United
States commerce of the acts, policies,
and practices that are the subject of the
Section 301 action continues to
increase. China’s unfair acts, policies,
and practices include not just its
technology transfer and IP polices
referenced in the notice of initiation in
the investigation, but also China’s
subsequent defensive actions taken to
maintain those unfair acts, policies, and
practices as determined in that
investigation. China has determined to
impose tariffs on a substantial majority
of U.S. goods exported to China, with
the goal of pressuring the United States
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
to cease its efforts to obtain the
elimination of China’s unfair policies.
China has further taken or threatened to
take additional countermeasures,
including non-tariff measures, against
commerce of the United States. For
example, China has taken concrete steps
to devalue its currency. See https://
home.treasury.gov/news/press-releases/
sm751. Most recently, shortly following
the August 2019 announcement of the
$300 billion action, China responded by
announcing further tariffs on U.S.
goods, starting September 1, 2019. In
short, instead of addressing the
underlying problems, China has
increased tariffs and adopted or
threatened additional retaliation to
further protect the unreasonable acts,
policies, and practices identified in the
investigation, resulting in increased
harm to the U.S. economy.
China’s most recent response of
announcing a new tariff increase on U.S.
goods has shown that the current action
being taken is no longer appropriate.
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/briefingsstatements/statement-press-secretaryregarding-presidents-working-dinnerchina. Since the meeting on December
1, 2018, the United States and China
have engaged in additional rounds of
negotiation on these issues, including
meetings in March, April, May, and July
2019. At certain times in these
discussions, China has offered specific
commitments that were constructive
towards reaching a resolution of this
matter. However, China more recently
has retreated from these commitments,
indicating that the action currently
being taken is not effective in obtaining
the elimination of the unfair acts,
policies, and practices covered in the
investigation. And as noted, China’s
specific response to the $300 billion
action at a 10 percent rate of additional
duty was not to address U.S. concerns,
but rather to impose further retaliatory
tariffs on U.S. commerce.
For these reasons, and in accordance
with the specific direction of the
President, the U.S. Trade Representative
has determined to modify the action
being taken in the investigation by
increasing the rate of additional duty
from 10 percent ad valorem to 15
percent ad valorem on the goods of
China specified in Annex A and Annex
C of the August 20 notice.
E:\FR\FM\30AUN1.SGM
30AUN1
Federal Register / Vol. 84, No. 169 / Friday, August 30, 2019 / Notices
jspears on DSK3GMQ082PROD with NOTICES
As noted above, the May 17, 2019
notice invited public comments on
duties of up to 25 percent on the
products covered by the proposed $300
billion action. The current modification
in the rate of additional duty takes into
account the public comments and
testimony, as well as advice from
advisory committees and the
interagency Section 301 committee,
concerning the action proposed in the
May 17 notice.
The Annex to this notice amends the
Harmonized Tariff Schedule of the
United States to provide that the rate of
additional duties for the products
covered in Annex A and Annex C of the
August 20 notice will be 15 percent.
This increase in the rate of duty does
not change the effective date of Annex
A (September 1, 2019) or of Annex C
(December 15, 2019).
Annex
Effective with respect to goods
entered for consumption, or withdrawn
from warehouse for consumption, on or
after 12:01 a.m. eastern daylight time on
September 1, 2019, subchapter III of
chapter 99 of the Harmonized Tariff
Schedule of the United States (HTSUS)
is modified:
1. By amending U.S. Note 20(r) to
subchapter III of chapter 99, as
established by the U.S. Trade
Representative in a determination
contained in 84 Federal Register 43304
(August 20, 2019), by deleting ‘‘10
percent’’ each place that it appears, and
inserting ‘‘15 percent’’ in lieu thereof;
and
2. by amending the Rates of Duty 1General column of heading 9903.88.15,
as established by the U.S. Trade
Representative in a determination
contained in 84 Federal Register 43304
(August 20, 2019), by deleting ‘‘10%’’,
and inserting ‘‘15%’’ in lieu thereof.
Effective with respect to goods
entered for consumption, or withdrawn
from warehouse for consumption, on or
after 12:01 a.m. eastern daylight time on
December 15, 2019, subchapter III of
chapter 99 of the Harmonized Tariff
Schedule of the United States is
modified:
1. By amending U.S. Note 20(t) to
subchapter III of chapter 99, as
established by the U.S. Trade
Representative in a determination
contained in 84 Federal Register 43304
(August 20, 2019), by deleting ‘‘10
percent’’ each place that it appears, and
inserting ‘‘15 percent’’ in lieu thereof;
and
2. by amending the Rates of Duty 1General column of heading 9903.88.16,
as established by the U.S. Trade
Representative in a determination
VerDate Sep<11>2014
16:43 Aug 29, 2019
Jkt 247001
contained in 84 Federal Register 43304
(August 20, 2019), by deleting ‘‘10%’’,
and inserting ‘‘15%’’ in lieu thereof.
45823
Transportation’s normal business hours
are 8:00 a.m. to 5:00 p.m.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that FHWA has taken final
Joseph Barloon,
agency actions subject to 23 U.S.C.
General Counsel, Office of the U.S. Trade
139(l)(1) by issuing a Record of Decision
Representative.
(ROD) for the following highway project
[FR Doc. 2019–18838 Filed 8–27–19; 4:15 pm]
in the State of Alabama: I–10 Mobile
BILLING CODE 3290–F9–P
River Bridge and Bayway Project in
Mobile and Baldwin Counties. The
proposed project to increase the
capacity of Interstate Route 10 (I–10) by
DEPARTMENT OF TRANSPORTATION constructing a new six-lane bridge
across the Mobile River and replacing
Federal Highway Administration
the existing four-lane I–10 bridges
across Mobile Bay with eight lanes
Notice of Final Federal Agency Action
above the 100-year storm elevation. The
on the I–10 Mobile River Bridge and
actions taken by FHWA, and the laws
Bayway Project in Alabama
under which such actions were taken,
AGENCY: Federal Highway
are described in the Combined Final
Administration (FHWA), Department of Environmental Impact Statement (FEIS)
Transportation (DOT).
and ROD approved on August 15, 2019,
and in other documents in the project
ACTION: Notice of Limitation on Claims
records. The Combined FEIS and ROD
for Judicial Review of Actions by
and other project records can be viewed
FHWA.
on the project’s website at:
SUMMARY: This notice announces actions www.mobileriverbridge.com. These
taken by the FHWA that are final. The
documents and other project records are
action relates to the proposed project to
also available by contacting FHWA or
increase the capacity of Interstate Route the Alabama Department of
10 (I–10) by constructing a new six-lane Transportation at the phone numbers
bridge across the Mobile River and
and addresses listed above.
This notice applies to all Federal
replacing the existing four-lane I–10
agency decisions as of the issuance date
bridges across Mobile Bay with eight
of this notice and all laws under which
lanes above the 100-year storm
such actions were taken, including but
elevation. The proposed project is
not limited to:
located in Mobile and Baldwin
1. General: National Environmental
Counties, Alabama. Those actions grant
Policy Act (NEPA) [42 U.S.C. 4321–
approvals for the project.
4351]; Federal-Aid Highway Act
DATES: By this notice, the FHWA is
(FAHA) [23 U.S.C. 109 and 23 U.S.C.
advising the public of final agency
128].
actions subject to 23 U.S.C. 139(l)(1). A
2. Air: Clean Air Act [42 U.S.C. 7401–
claim seeking judicial review of the
7671(q)].
Federal agency actions on the project
3. Land: Section 4(f) of the
will be barred unless the claim is filed
Department of Transportation Act of
on or before January 27, 2020. If the
1966 [49 U.S.C. 303 and 23 U.S.C. 138].
Federal law that authorizes judicial
4. Wildlife: Endangered Species Act
review of a claim provides a time period [16 U.S.C. 1531–1544 and Section
of less than 150 days for filing such
1536]; Marine Mammal Protection Act
claim, then that shorter time period still [16 U.S.C. 1361–1423h]; Fish and
applies.
Wildlife Coordination Act [16 U.S.C.
FOR FURTHER INFORMATION CONTACT:
661–667(d)]; Migratory Bird Treaty Act
Mark D. Bartlett, Division
[16 U.S.C. 703–712]; Magnuson-Stevens
Administrator, FHWA Alabama
Fishery Conservation and Management
Division, 9500 Wynlakes Place,
Act of 1976, as amended [16 U.S.C. 1801
Montgomery, Alabama 36117–8515,
et seq.].
Telephone: (334) 274–6350,
5. Historic and Cultural Resources:
Email:Mark.Bartlett@dot.gov. The
Section 106 of the National Historic
FHWA Alabama Division Office’s
Preservation Act of 1966, as amended
normal business hours are 8:00 a.m. to
[16 U.S.C. 470(f) et seq.]; Archeological
4:30 p.m. (Central Standard Time). You
Resources Protection Act of 1977 [16
may also contact Matt J. Ericksen,
U.S.C. 470aa–470mm]; Archeological
Southwest Region Engineer, Alabama
and Historic Preservation Act [16 U.S.C.
Department of Transportation, 1701 I–
469–469c]; Native American Grave
65 West Service Road North, Mobile,
Protection and Repatriation Act
Alabama 36618, Telephone: (251) 470–
(NAGPRA) [25 U.S.C. 3001–3013].
6. Social and Economic: Civil Rights
8200, Email: ericksenm@dot.state.al.us.
Act of 1964 [42 U.S.C. 2000(d)–
The Alabama Department of
PO 00000
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Fmt 4703
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E:\FR\FM\30AUN1.SGM
30AUN1
]]>Agencies
[Federal Register Volume 84, Number 169 (Friday, August 30, 2019)]
[Notices]
[Pages 45821-45823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18838]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
SUMMARY: In accordance with the specific direction of the President,
the U.S. Trade Representative has determined to modify the action being
taken in this Section 301 investigation by increasing the rate of
additional duty from 10 to 15 percent for the products of China covered
by the $300 billion tariff action published on August 20, 2019.
DATES: For products covered by Annex A of the August 20, 2019 notice
(84 FR 43304), the rate of additional duty will be 15 percent on the
current effective date of September 1, 2019. For products covered by
Annex C of the August 20 notice, the rate of additional duty will be 15
percent on the current effective date of December 15, 2019.
[[Page 45822]]
FOR FURTHER INFORMATION CONTACT: For questions about this action,
contact Associate General Counsel Arthur Tsao or 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 identified in the
Annexes to this notice, contact [email protected].
SUPPLEMENTARY INFORMATION:
A. Prior Determinations in the Investigation
On August 18, 2017, the U.S. Trade Representative initiated an
investigation into certain acts, policies, and practices of the
Government of China related to technology transfer, intellectual
property, and innovation. 82 FR 40213 (August 23, 2017). In April 2018,
the U.S. Trade Representative published a notice of a determination
that the acts, policies, and practices of China under investigation are
unreasonable or discriminatory and burden or restrict U.S. commerce,
and are thus actionable under Section 301(b) of the Trade Act of 1974,
as amended (Trade Act). 83 FR 14906 (April 6, 2018).
Up through early May 2019, the U.S. Trade Representative, at the
direction of the President, determined to take actions resulting in the
imposition of an additional 25 percent ad valorem duty on products of
China with an aggregate annual trade value of approximately $250
billion in order to obtain the elimination of China's acts, policies,
and practices covered in the investigation. As explained in prior
notices, the actions do not relate to China's acts, policies, and
practices involving technology licensing, which are being addressed
separately in a WTO dispute settlement proceeding.
The U.S. Trade Representative imposed these additional duties in
three tranches. Tranche 1 covered 818 tariff subheadings, with an
approximate annual trade value of $34 billion. See 83 FR 28710 (June
20, 2018). Tranche 2 covered 279 tariff subheadings, with an
approximate annual trade value of $16 billion. See 83 FR 40823 (August
16, 2018). Tranche 3 covered 5,733 tariff subheadings, with an
approximate annual trade value of $200 billion. See 83 FR 47974
(September 21, 2018); 83 FR 49153 (September 28, 2018); and 84 FR 20459
(May 9, 2019).
As of mid-May 2019, China's statements and conduct indicated that
action at a $250 billion level was insufficient to obtain the
elimination of China's unfair and harmful policies. Accordingly, the
President directed the U.S. Trade Representative to consider a possible
modification of the action being taken in the form of additional duties
of up to 25 percent on products of China with an annual aggregate trade
value of approximately $300 billion. In a notice published on May 17,
2019 (84 FR 22564), the Office of the United States Trade
Representative invited public comments and announced a public hearing
with regard to the possible imposition of additional duties of up to 25
percent on a specific list of tariff subheadings with an approximate
annual trade value of $300 billion. The notice and comment process
concluded in early July 2019.
In August 2019, the U.S. Trade Representative, at the direction of
the President, determined to modify the action being taken in the
investigation by imposing an additional 10 percent ad valorem duty on
products of China with an annual aggregate trade value of approximately
$300 billion. 84 FR 43304 (August 20, 2019). The August 20 notice
contains two separate lists of tariff subheadings, with two different
effective dates. List 1, which is set out in Annex A of the August 20
notice, is effective September 1, 2019. List 2, which is set out in
Annex C of the August 20 notice, is effective December 15, 2019.
B. Modification of Action
The Section 301 statute (set out in Sections 301 to 308 of the
Trade Act) (19 U.S.C. 2411-2418) includes authority for the U.S. Trade
Representative to modify the action being taken in an investigation. In
particular, Section 307(a)(1) authorizes the U.S. Trade Representative
to modify or terminate any action 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 the action has increased or
decreased, or the action is being taken under Section 301(b) and is no
longer appropriate.
The burden or restriction on United States commerce of the acts,
policies, and practices that are the subject of the Section 301 action
continues to increase. China's unfair acts, policies, and practices
include not just its technology transfer and IP polices referenced in
the notice of initiation in the investigation, but also China's
subsequent defensive actions taken to maintain those unfair acts,
policies, and practices as determined in that investigation. China has
determined to impose tariffs on a substantial majority of U.S. goods
exported to China, with the goal of pressuring the United States to
cease its efforts to obtain the elimination of China's unfair policies.
China has further taken or threatened to take additional
countermeasures, including non-tariff measures, against commerce of the
United States. For example, China has taken concrete steps to devalue
its currency. See https://home.treasury.gov/news/press-releases/sm751.
Most recently, shortly following the August 2019 announcement of the
$300 billion action, China responded by announcing further tariffs on
U.S. goods, starting September 1, 2019. In short, instead of addressing
the underlying problems, China has increased tariffs and adopted or
threatened additional retaliation to further protect the unreasonable
acts, policies, and practices identified in the investigation,
resulting in increased harm to the U.S. economy.
China's most recent response of announcing a new tariff increase on
U.S. goods has shown that the current action being taken is no longer
appropriate. 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-china. Since the meeting on
December 1, 2018, the United States and China have engaged in
additional rounds of negotiation on these issues, including meetings in
March, April, May, and July 2019. At certain times in these
discussions, China has offered specific commitments that were
constructive towards reaching a resolution of this matter. However,
China more recently has retreated from these commitments, indicating
that the action currently being taken is not effective in obtaining the
elimination of the unfair acts, policies, and practices covered in the
investigation. And as noted, China's specific response to the $300
billion action at a 10 percent rate of additional duty was not to
address U.S. concerns, but rather to impose further retaliatory tariffs
on U.S. commerce.
For these reasons, and in accordance with the specific direction of
the President, the U.S. Trade Representative has determined to modify
the action being taken in the investigation by increasing the rate of
additional duty from 10 percent ad valorem to 15 percent ad valorem on
the goods of China specified in Annex A and Annex C of the August 20
notice.
[[Page 45823]]
As noted above, the May 17, 2019 notice invited public comments on
duties of up to 25 percent on the products covered by the proposed $300
billion action. The current modification in the rate of additional duty
takes into account the public comments and testimony, as well as advice
from advisory committees and the interagency Section 301 committee,
concerning the action proposed in the May 17 notice.
The Annex to this notice amends the Harmonized Tariff Schedule of
the United States to provide that the rate of additional duties for the
products covered in Annex A and Annex C of the August 20 notice will be
15 percent. This increase in the rate of duty does not change the
effective date of Annex A (September 1, 2019) or of Annex C (December
15, 2019).
Annex
Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on September 1, 2019, subchapter III of chapter
99 of the Harmonized Tariff Schedule of the United States (HTSUS) is
modified:
1. By amending U.S. Note 20(r) to subchapter III of chapter 99, as
established by the U.S. Trade Representative in a determination
contained in 84 Federal Register 43304 (August 20, 2019), by deleting
``10 percent'' each place that it appears, and inserting ``15 percent''
in lieu thereof; and
2. by amending the Rates of Duty 1-General column of heading
9903.88.15, as established by the U.S. Trade Representative in a
determination contained in 84 Federal Register 43304 (August 20, 2019),
by deleting ``10%'', and inserting ``15%'' in lieu thereof.
Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on December 15, 2019, subchapter III of chapter
99 of the Harmonized Tariff Schedule of the United States is modified:
1. By amending U.S. Note 20(t) to subchapter III of chapter 99, as
established by the U.S. Trade Representative in a determination
contained in 84 Federal Register 43304 (August 20, 2019), by deleting
``10 percent'' each place that it appears, and inserting ``15 percent''
in lieu thereof; and
2. by amending the Rates of Duty 1-General column of heading
9903.88.16, as established by the U.S. Trade Representative in a
determination contained in 84 Federal Register 43304 (August 20, 2019),
by deleting ``10%'', and inserting ``15%'' in lieu thereof.
Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
[FR Doc. 2019-18838 Filed 8-27-19; 4:15 pm]
BILLING CODE 3290-F9-P
