Notice of Product Exclusions and Amendments: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 52567-52579 [2019-21420]

Download as PDF Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Notice of Product Exclusions and Amendments: 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 and amendments. AGENCY: 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’s determination included a decision to establish a product exclusion process. The U.S. Trade Representative initiated the exclusion process in July 2018, and stakeholders have submitted requests for the exclusion of specific products. In December 2018, and March, April, May, June, July and September 2019, the U.S. Trade Representative granted exclusion requests. This notice announces the U.S. Trade Representative’s determination to grant additional exclusion requests, as specified in the Annex to this notice. The U.S. Trade Representative will continue to issue decisions as necessary. This notice also corrects errors by removing certain notes in the Harmonized Tariff Schedule of the United States. DATES: The product exclusions announced in this notice will apply as of the July 6, 2018 effective date of the $34 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: khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: A. Background For background on the proceedings in this investigation, please see the prior notices issued in the investigation, VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 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 47974 (September 21, 2018), 83 FR 65198 (December 19, 2018), 83 FR 67463 (December 28, 2018), 84 FR 7966 (March 5, 2019), 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 (July 9, 2019), and 84 FR 49564 (September 20, 2019). 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. ($34 billion action.) 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 $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). Under the July 11 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 $34 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 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 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 52567 ‘‘Made in China 2025’’ or other Chinese industrial programs. The July 11 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 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 would periodically announce decisions. In December 2018, the U.S. Trade Representative granted an initial set of exclusion requests. See 83 FR 67463. The U.S. Trade Representative granted additional exclusions in March, April, May, June, July, and September 2019. See 84 FR 11152, 84 FR 16310, 84 FR 21389, 84 FR 25895, 84 FR 32821, and 84 FR 49564. The Office of the U.S. 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 July 11 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 to this notice, the exclusions are reflected in 92 specially prepared product descriptions, which cover 129 separate exclusion requests. 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 10-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. E:\FR\FM\02OCN1.SGM 02OCN1 52568 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES Paragraph A, subparagraphs (3)–(5) are conforming amendments to the HTSUS reflecting the modification made by the Annex to this notice. Paragraphs B, C, D, and E of the Annex correct errors by removing U.S. notes 20(q)(115), 20(q)(132), 20(q)(133), and 20(q)(216) of subchapter III of chapter 99 of the HTSUS. These notes relate to HTS subheadings covered by other tariff actions, but they were placed VerDate Sep<11>2014 18:25 Oct 01, 2019 Jkt 250001 in the annex to the notice published at 84 FR 49564 (September 20, 2019), which excluded products under HTS subheadings covered by the $34 billion action. As stated in the July 11 notice, the exclusions will apply as of the July 6, 2018 effective date of the $34 billion action, and extend for one year after the publication of this notice. U.S. Customs and Border Protection will issue PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 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\02OCN1.SGM 02OCN1 VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 52569 EN02OC19.004</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 EN02OC19.005</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 52570 VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 52571 EN02OC19.006</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 EN02OC19.007</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 52572 VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00120 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 52573 EN02OC19.008</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 EN02OC19.009</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 52574 VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 52575 EN02OC19.010</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 EN02OC19.011</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 52576 VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 52577 EN02OC19.012</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices 16:42 Oct 01, 2019 Jkt 250001 PO 00000 Frm 00125 Fmt 4703 Sfmt 4725 E:\FR\FM\02OCN1.SGM 02OCN1 EN02OC19.013</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 52578 Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Notices DEPARTMENT OF TRANSPORTATION Notice of Request To Release Airport Property for Land Disposal Federal Aviation Administration (FAA), DOT. VerDate Sep<11>2014 16:42 Oct 01, 2019 Jkt 250001 The FAA proposes to rule and invites public comment on the release of land at the Malden Regional Airport & Industrial Park (MAW), Malden, Missouri. SUMMARY: Federal Aviation Administration PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 Comments must be received on or before November 1, 2019. DATES: Comments on this application may be mailed or delivered to the FAA at the following address: Amy J. Walter, Airports Land Specialist, Federal Aviation Administration, Airports Division, ACE–620G, 901 Locust, Room 364, Kansas City, MO 64106. In addition, one copy of any comments submitted to the FAA must ADDRESSES: E:\FR\FM\02OCN1.SGM 02OCN1 EN02OC19.014</GPH> khammond on DSKJM1Z7X2PROD with NOTICES BILLING CODE 3290–F9–C AGENCY: Notice of Request to Rule on Release of Airport Property for Land Disposal at the Malden Regional Airport & Industrial Park (MAW), Malden, Missouri. ACTION: [FR Doc. 2019–21420 Filed 10–1–19; 8:45 am] 52579

Agencies

[Federal Register Volume 84, Number 191 (Wednesday, October 2, 2019)]
[Notices]
[Pages 52567-52579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21420]



[[Page 52567]]

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

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusions and Amendments: 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 and amendments.

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

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's determination included a decision to establish a 
product exclusion process. The U.S. Trade Representative initiated the 
exclusion process in July 2018, and stakeholders have submitted 
requests for the exclusion of specific products. In December 2018, and 
March, April, May, June, July and September 2019, the U.S. Trade 
Representative granted exclusion requests. This notice announces the 
U.S. Trade Representative's determination to grant additional exclusion 
requests, as specified in the Annex to this notice. The U.S. Trade 
Representative will continue to issue decisions as necessary. This 
notice also corrects errors by removing certain notes in the Harmonized 
Tariff Schedule of the United States.

DATES: The product exclusions announced in this notice will apply as of 
the July 6, 2018 effective date of the $34 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 47974 (September 21, 2018), 83 FR 65198 
(December 19, 2018), 83 FR 67463 (December 28, 2018), 84 FR 7966 (March 
5, 2019), 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 
(July 9, 2019), and 84 FR 49564 (September 20, 2019).
    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. ($34 billion action.) 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 $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).
    Under the July 11 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 $34 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 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 July 11 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 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 would periodically announce 
decisions. In December 2018, the U.S. Trade Representative granted an 
initial set of exclusion requests. See 83 FR 67463. The U.S. Trade 
Representative granted additional exclusions in March, April, May, 
June, July, and September 2019. See 84 FR 11152, 84 FR 16310, 84 FR 
21389, 84 FR 25895, 84 FR 32821, and 84 FR 49564. The Office of the 
U.S. 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 July 11 
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 to this notice, the exclusions are 
reflected in 92 specially prepared product descriptions, which cover 
129 separate exclusion requests.
    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 10-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.

[[Page 52568]]

    Paragraph A, subparagraphs (3)-(5) are conforming amendments to the 
HTSUS reflecting the modification made by the Annex to this notice.
    Paragraphs B, C, D, and E of the Annex correct errors by removing 
U.S. notes 20(q)(115), 20(q)(132), 20(q)(133), and 20(q)(216) of 
subchapter III of chapter 99 of the HTSUS. These notes relate to HTS 
subheadings covered by other tariff actions, but they were placed in 
the annex to the notice published at 84 FR 49564 (September 20, 2019), 
which excluded products under HTS subheadings covered by the $34 
billion action.
    As stated in the July 11 notice, the exclusions will apply as of 
the July 6, 2018 effective date of the $34 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

[[Page 52569]]

[GRAPHIC] [TIFF OMITTED] TN02OC19.004


[[Page 52570]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.005


[[Page 52571]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.006


[[Page 52572]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.007


[[Page 52573]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.008


[[Page 52574]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.009


[[Page 52575]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.010


[[Page 52576]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.011


[[Page 52577]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.012


[[Page 52578]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.013


[[Page 52579]]


[GRAPHIC] [TIFF OMITTED] TN02OC19.014

[FR Doc. 2019-21420 Filed 10-1-19; 8:45 am]
 BILLING CODE 3290-F9-C