Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 49600-49610 [2019-20440]

Download as PDF 49600 [FR Doc. 2019–20442 Filed 9–19–19; 8:45 am] BILLING CODE 3290–F9–C OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation Office of the United States Trade Representative. ACTION: Notice of product exclusions. AGENCY: Effective August 23, 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $16 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’s determination included a decision to establish a product exclusion process. The U.S. Trade Representative initiated the exclusion process in September 2018, and stakeholders have submitted requests for the exclusion of specific products. In July 2019, the U.S. Trade Representative granted exclusion requests. This notice announces the U.S. Trade Representative’s determination to grant certain exclusion requests, as specified in the Annex to this notice. khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 The U.S. Trade Representative will continue to issue decisions on pending requests on a periodic basis. DATES: The product exclusions announced in this notice will apply as of the August 23, 2018 effective date of the $16 billion action, and will extend for one year after the publication of this notice. 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 Megan Grimball, 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 traderemedy@cbp.dhs.gov. 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 33608 (July 17, 2018), 83 FR 38760 (August 7, 2018), 83 FR 40823 (August 16, 2018), 83 FR 47236 (September 18, 2018), 83 FR 47974 (September 21, 2018), 83 FR 65198 (December 19, 2018), 84 FR 7966 (March 5, 2019), 84 FR 20459 (May 9, PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 2019), 84 FR 29576 (June 24, 2019), and 84 FR 37381 (July 31, 2019). Effective August 23, 2018, the U.S. Trade Representative imposed additional 25 percent duties on goods of China classified in 279 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $16 billion. See 83 FR 40823. The U.S. Trade Representative’s determination included a decision to establish a process by which U.S. stakeholders may request exclusion of particular products classified within an 8-digit HTSUS subheading covered by the $16 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 47236 (the September 18 notice). Under the September 18 notice, requests for exclusion had to identify the product subject to the request in terms of the physical characteristics that distinguish the product from other products within the relevant 8-digit subheading covered by the $16 billion action. Requestors also had to provide the 10-digit subheading of the HTSUS most applicable to the particular product requested for exclusion, and could submit information on the ability of U.S. Customs and Border Protection to administer the requested exclusion. Requestors were asked to provide the E:\FR\FM\20SEN1.SGM 20SEN1 EN20SE19.041</GPH> Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES quantity and value of the Chinese-origin product that the requestor purchased in the last three years. With regard to the rationale for the requested exclusion, requests had to address the following factors: • Whether the particular product is available only from China and specifically whether the particular product and/or a comparable product is available from sources in the United States and/or third countries. • Whether the imposition of additional duties on the particular product would cause severe economic harm to the requestor or other U.S. interests. • Whether the particular product is strategically important or related to ‘‘Made in China 2025’’ or other Chinese industrial programs. The September 18 notice stated that the U.S. Trade Representative would take into account whether an exclusion would undermine the objective of the Section 301 investigation. The September 18 notice required submission of requests for exclusion from the $16 billion action no later than December 18, 2018, and noted that the U.S. Trade Representative periodically would announce decisions. In July VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 49601 2019, the U.S. Trade Representative granted an initial set of exclusion requests. See 84 FR 37381. The Office of the United States Trade Representative regularly updates the status of each pending request and posts the status within the web pages for the respective tariff action they apply to at https:// ustr.gov/issue-areas/enforcement/ section-301-investigations/tariff-actions. In accordance with the September 18 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 product descriptions in the Annex, and not by the product descriptions set out in any particular request for exclusion. B. Determination To Grant Certain Exclusions Paragraph A, subparagraphs (3)–(5) are conforming amendments to the HTSUS reflecting the modification made by the Annex. Based on the evaluation of the factors set out in the September 18 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 grant the product exclusions set out in the Annex to this notice. The U.S. Trade Representative’s determination also takes into account advice from advisory committees and any public comments on the pertinent exclusion requests. As set out in the Annex, the exclusions are reflected in 89 specially prepared product descriptions, which cover 400 separate exclusion requests. PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 As stated in the September 18 notice, the exclusions will apply as of the August 23, 2018 effective date of the $16 billion action, and extend for one year after the publication of this notice. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation. The U.S. Trade Representative will continue to issue determinations on pending requests on a periodic basis. Joseph Barloon, General Counsel, Office of the U.S. Trade Representative. BILLING CODE 3290–F9–P E:\FR\FM\20SEN1.SGM 20SEN1 VerDate Sep<11>2014 Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 EN20SE19.000</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 49602 VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 49603 EN20SE19.001</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 EN20SE19.002</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 49604 VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 49605 EN20SE19.003</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 EN20SE19.004</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 49606 VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 49607 EN20SE19.005</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 EN20SE19.006</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 49608 VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4725 E:\FR\FM\20SEN1.SGM 20SEN1 49609 EN20SE19.007</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices 49610 Federal Register / Vol. 84, No. 183 / Friday, September 20, 2019 / Notices [FR Doc. 2019–20440 Filed 9–19–19; 8:45 am] VerDate Sep<11>2014 17:13 Sep 19, 2019 Jkt 247001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\20SEN1.SGM 20SEN1 EN20SE19.008</GPH> khammond on DSKJM1Z7X2PROD with NOTICES BILLING CODE 3290–F9–C

Agencies

[Federal Register Volume 84, Number 183 (Friday, September 20, 2019)]
[Notices]
[Pages 49600-49610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20440]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusions: 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 exclusions.

-----------------------------------------------------------------------

SUMMARY: Effective August 23, 2018, the U.S. Trade Representative 
imposed additional duties on goods of China with an annual trade value 
of approximately $16 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's determination included a decision to establish a 
product exclusion process. The U.S. Trade Representative initiated the 
exclusion process in September 2018, and stakeholders have submitted 
requests for the exclusion of specific products. In July 2019, the U.S. 
Trade Representative granted exclusion requests. This notice announces 
the U.S. Trade Representative's determination to grant certain 
exclusion requests, as specified in the Annex to this notice. The U.S. 
Trade Representative will continue to issue decisions on pending 
requests on a periodic basis.

DATES: The product exclusions announced in this notice will apply as of 
the August 23, 2018 effective date of the $16 billion action, and will 
extend for one year after the publication of this notice. 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 Megan 
Grimball, 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 
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), 83 FR 
40823 (August 16, 2018), 83 FR 47236 (September 18, 2018), 83 FR 47974 
(September 21, 2018), 83 FR 65198 (December 19, 2018), 84 FR 7966 
(March 5, 2019), 84 FR 20459 (May 9, 2019), 84 FR 29576 (June 24, 
2019), and 84 FR 37381 (July 31, 2019).
    Effective August 23, 2018, the U.S. Trade Representative imposed 
additional 25 percent duties on goods of China classified in 279 8-
digit subheadings of the Harmonized Tariff Schedule of the United 
States (HTSUS), with an approximate annual trade value of $16 billion. 
See 83 FR 40823. The U.S. Trade Representative's determination included 
a decision to establish a process by which U.S. stakeholders may 
request exclusion of particular products classified within an 8-digit 
HTSUS subheading covered by the $16 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 47236 (the September 18 notice).
    Under the September 18 notice, requests for exclusion had to 
identify the product subject to the request in terms of the physical 
characteristics that distinguish the product from other products within 
the relevant 8-digit subheading covered by the $16 billion action. 
Requestors also had to provide the 10-digit subheading of the HTSUS 
most applicable to the particular product requested for exclusion, and 
could submit information on the ability of U.S. Customs and Border 
Protection to administer the requested exclusion. Requestors were asked 
to provide the

[[Page 49601]]

quantity and value of the Chinese-origin product that the requestor 
purchased in the last three years. With regard to the rationale for the 
requested exclusion, requests had to address the following factors:
     Whether the particular product is available only from 
China and specifically whether the particular product and/or a 
comparable product is available from sources in the United States and/
or third countries.
     Whether the imposition of additional duties on the 
particular product would cause severe economic harm to the requestor or 
other U.S. interests.
     Whether the particular product is strategically important 
or related to ``Made in China 2025'' or other Chinese industrial 
programs.
    The September 18 notice stated that the U.S. Trade Representative 
would take into account whether an exclusion would undermine the 
objective of the Section 301 investigation.
    The September 18 notice required submission of requests for 
exclusion from the $16 billion action no later than December 18, 2018, 
and noted that the U.S. Trade Representative periodically would 
announce decisions. In July 2019, the U.S. Trade Representative granted 
an initial set of exclusion requests. See 84 FR 37381. The Office of 
the United States Trade Representative regularly updates the status of 
each pending request and posts the status within the web pages for the 
respective tariff action they apply to at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions.

B. Determination To Grant Certain Exclusions

    Based on the evaluation of the factors set out in the September 18 
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 grant the product 
exclusions set out in the Annex to this notice. The U.S. Trade 
Representative's determination also takes into account advice from 
advisory committees and any public comments on the pertinent exclusion 
requests.
    As set out in the Annex, the exclusions are reflected in 89 
specially prepared product descriptions, which cover 400 separate 
exclusion requests.
    In accordance with the September 18 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 product 
descriptions in the Annex, and not by the product descriptions set out 
in any particular request for exclusion.
    Paragraph A, subparagraphs (3)-(5) are conforming amendments to the 
HTSUS reflecting the modification made by the Annex.
    As stated in the September 18 notice, the exclusions will apply as 
of the August 23, 2018 effective date of the $16 billion action, and 
extend for one year after the publication of this notice. U.S. Customs 
and Border Protection will issue instructions on entry guidance and 
implementation.
    The U.S. Trade Representative will continue to issue determinations 
on pending requests on a periodic basis.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
 BILLING CODE 3290-F9-P

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[FR Doc. 2019-20440 Filed 9-19-19; 8:45 am]
 BILLING CODE 3290-F9-C