Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 69011-69012 [2019-27072]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 84, Number 242 (Tuesday, December 17, 2019)]
[Notices]
[Pages 69011-69012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27072]


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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 amendments.

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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, September and 
October 2019, the U.S. Trade Representative granted exclusion requests. 
This notice makes amendments to certain notes in the Harmonized Tariff 
Schedule of the United States (HTSUS). The U.S. Trade Representative 
will continue to issue decisions as necessary.

DATES: The amendments announced in this notice are retroactive to the 
date the original exclusions were published and do not extend the 
period for the original exclusions. 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 Counsel Philip Butler 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), 84 FR 37381 (July 31, 2019), 84 FR 49600 (September 20, 2019), 
and 84 FR 52553 (October 2, 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 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 can 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

[[Page 69012]]

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 it 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 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 U.S. Trade 
Representative granted additional exclusions in September and October 
2019. See 84 FR 49600 and 84 FR 52553.

B. Amendments to Certain Exclusions

    To correct technical and ministerial errors and in order to conform 
to the U.S. Trade Representative's intent to grant certain exclusions, 
the Annex to this notice includes amendments to certain notes in the 
HTSUS.
    In order to clarify a periodic revision to the HTSUS, subparagraph 
A(1) of the Annex modifies the text to U.S. note 20(v)(86) to 
subchapter III of chapter 99 of the HTSUS, as set out in the Annex of 
the notice published at 84 FR 49600 (September 20, 2019).
    Subparagraphs A(2-7) of the Annex correct errors in U.S. notes 
20(v)(21), 20(v)(22), 20(v)(36), 20(v)(71), 20(v)(72), and 20(v)(87) to 
subchapter III of chapter 99 of the HTSUS, as set out in the Annex of 
the notice published at 84 FR 49600 (September 20, 2019).
    In order to conform to the U.S. Trade Representative's intent to 
grant certain exclusion requests, Subparagraphs A(8-9) of the Annex 
make amendments to U.S. notes 20(v)(20) and 20(v)(37) to subchapter III 
of chapter 99 of the HTSUS, as set out in the annex of the notice 
published at 84 FR 49600 (September 20, 2019).
    The U.S. Trade Representative will continue to issue determinations 
on a periodic basis as needed.

Annex

    A. 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 August 23, 2018:
    1. U.S. note 20(v)(21) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``2.44 mm'' and inserting ``2.44 m'' in lieu thereof.
    2. U.S. note 20(v)(22) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``47.5 cm in width, 61.0 cm in length and 24 mm in thickness'' and 
inserting ``45.72 cm in width, 60.96 cm in length and 0.6096 mm in 
thickness'' in lieu thereof.
    3. U.S. note 20(v)(36) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``1.12 cm or more but not exceeding 1.52 cm in width and 1.93 cm or 
more but not exceeding 2.29 cm in length'' and inserting ``1.12 m or 
more but not over 1.52 m in width and 1.93 m or more but not over 2.29 
m in length'' in lieu thereof.
    4. U.S. note 20(v)(71) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
`'25 W but not exceeding 2.0 kW'' and inserting ``exceeding 750 W but 
not over 1.8 kW'' in lieu thereof.
    5. U.S. note 20(v)(72) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is deleted.
    6. U.S. note 20(v)(20) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``1.5 m or more in width, printed in various colors, valued at $1.60 to 
$1.90 per kg'' and inserting ``0.6 m or more in width, whether or not 
printed in various colors, valued at $0.88 or more but not over $2.42 
per kg'' in lieu thereof.
    7. U.S. note 20(v)(37) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``plastic sheeting made of plain-woven, high-density polyethylene 
fabric coated on both sides with low-density polyethylene, in rolls 
measuring 5 m in width'' and inserting ``plastic sheeting, core/scrim 
woven layer of high-density polyethylene (HDPE) textile strip, coated 
on both sides with low density polyethylene (LDPE), with a layer of 
visible black file of linear LDPE, polyvinyl chloride free, weighing 
not over 1.492 kg/m2, in rolls each not over 5 m in width'' in lieu 
thereof.
    8. U.S. note 20(v)(86) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``(described in statistical reporting numbers 8711.60.0050 or 
8711.60.0090)'' and inserting ``(described in statistical reporting 
numbers 8711.60.0050 or 8711.60.0090, effective July 1, 2019; described 
in statistical reporting number 8711.60.0000, effective prior to July 
1, 2019)'' in lieu thereof.
    9. U.S. note 20(v)(87) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``not exceeding 250 W'' (described in statistical reporting numbers 
8711.60.0050)'' and inserting ``of 1.0 kW or more but not over 2.1 kW 
(described in statistical reporting number 8711.60.0090, effective July 
1, 2019; described in statistical reporting number 8711.60.0000, prior 
to July 1, 2019)''.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
[FR Doc. 2019-27072 Filed 12-16-19; 8:45 am]
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