Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 6674-6687 [2020-02225]

Download as PDF 6674 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices Dated: January 30, 2020. Naomi Sipple, Reports Clearance Officer, Social Security Administration. [FR Doc. 2020–02176 Filed 2–4–20; 8:45 am] BILLING CODE 4191–02–P 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: In September of 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $200 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 initiated a product exclusion process in June 2019, and interested persons have submitted requests for the exclusion of specific products. This notice announces the U.S. Trade Representative’s determination to grant certain exclusion requests, as specified in the Annex to this notice, and corrects technical errors in previously announced exclusions. DATES: The product exclusions announced in this notice will apply as of September 24, 2018, the effective date of the $200 billion action, to August 7, 2020. The amendments announced in this notice are retroactive to the date the original exclusions were published. 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: SUMMARY: jbell on DSKJLSW7X2PROD with NOTICES 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, VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 2018), 83 FR 47974 (September 21, 2018), 83 FR 49153 (September 28, 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 FRN 38717 (August 7, 2019), 84 FR 46212 (September 3, 2019), 84 FR 49591 (September 20, 2019), 84 FR 57803 (October 28, 2019), 84 FR 61674 (November 13, 2019), 84 FR 65882 (November 29, 2019), 84 FR 69012 (December 17, 2019), and 85 FR 549 (January 6, 2020). Effective September 24, 2018, the U.S. Trade Representative imposed additional 10 percent duties on goods of China classified in 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $200 billion. See 83 FR 47974, as modified by 83 FR 49153. In May 2019, the U.S. Trade Representative increased the additional duty to 25 percent. See 84 FR 20459. On June 24, 2019, the U.S. Trade Representative established a process by which U.S. stakeholders may request exclusion of particular products classified within an 8-digit HTSUS subheading covered by the $200 billion action from the additional duties. See 84 FR 29576 (the June 24 notice). Under the June 24 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 $200 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. PO 00000 Frm 00178 Fmt 4703 Sfmt 4703 The June 24 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 June 24 notice required submission of requests for exclusion from the $200 billion action no later than September 30, 2019, and noted that the U.S. Trade Representative would periodically announce decisions. In August 2019, the U.S. Trade Representative granted an initial set of exclusion requests. See 84 FR 38717. The U.S. Trade Representative granted additional exclusions in September 2019, October 2019, November 2019, December 2019, and January 2020. See 84 FR 49591, 84 FR 57803, 84 FR 61674, 84 FR 65882, 84 FR 69012, 85 FR 549. The Office of the United States Trade Representative (USTR) regularly updates the status of each pending request on the USTR Exclusions Portal at https://exclusions.ustr.gov/s/ docket?docketNumber=USTR-20190005. B. Determination To Grant Certain Exclusions Based on the evaluation of the factors set forth in the June 24 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 forth 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 forth in the Annex, the exclusions are reflected in 2 10-digit HTSUS subheadings, which cover 52 requests, and 117 specially prepared product descriptions, which cover 156 separate exclusion requests. In accordance with the June 24 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 found in any particular request for exclusion. Subparagraphs A(3–7) of the Annex contain conforming amendments to the HTSUS reflecting the modifications made by the Annex. Paragraph B of the Annex contains amendments reflecting technical corrections to the specially prepared product descriptions in certain notes to the HTSUS, specifically U.S. E:\FR\FM\05FEN1.SGM 05FEN1 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices note 20(ll)(26), published at 84 FR 57803 (October 29, 2019), and U.S. note 20(nn)(20), published at 84 FR 61674 (November 13, 2019). As stated in the September 20, 2019 notice, the exclusions will apply from September 24, 2018, to August 7, 2020. 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. jbell on DSKJLSW7X2PROD with NOTICES BILLING CODE 3290–F0–P VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00179 Fmt 4703 Sfmt 4703 6675 E:\FR\FM\05FEN1.SGM 05FEN1 VerDate Sep<11>2014 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00180 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.009</GPH> jbell on DSKJLSW7X2PROD with NOTICES 6676 VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00181 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 6677 EN05FE20.010</GPH> jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices VerDate Sep<11>2014 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00182 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.011</GPH> jbell on DSKJLSW7X2PROD with NOTICES 6678 VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00183 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 6679 EN05FE20.012</GPH> jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices VerDate Sep<11>2014 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00184 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.013</GPH> jbell on DSKJLSW7X2PROD with NOTICES 6680 VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00185 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 6681 EN05FE20.014</GPH> jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices VerDate Sep<11>2014 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00186 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.015</GPH> jbell on DSKJLSW7X2PROD with NOTICES 6682 VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00187 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 6683 EN05FE20.016</GPH> jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices VerDate Sep<11>2014 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00188 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.017</GPH> jbell on DSKJLSW7X2PROD with NOTICES 6684 VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00189 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 6685 EN05FE20.018</GPH> jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices VerDate Sep<11>2014 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 18:54 Feb 04, 2020 Jkt 250001 PO 00000 Frm 00190 Fmt 4703 Sfmt 4725 E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.019</GPH> jbell on DSKJLSW7X2PROD with NOTICES 6686 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices BILLING CODE 3290–F0–C OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket Number USTR–2020–0002] Request for Comments Concerning the Extension of Particular Exclusions Granted Under the April 2019 Product Exclusion Notice From the $34 Billion Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation Office of the United States Trade Representative. ACTION: Notice and request for comments. 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 initiated the exclusion process in July 2018 and has granted multiple sets of exclusions. The third set of exclusions was granted in April 2019, and is scheduled to expire on April 18, 2020. The U.S. Trade Representative has decided to consider a possible extension for up to 12 months of particular exclusions granted in April 2019. The Office of the U.S. Trade Representative (USTR) invites public comment on whether to extend particular exclusions. DATES: February 16, 2020 at 12:01 a.m. ET: The docket—USTR–2020–0002—will open for submitting comments on the possible extension of particular exclusions. jbell on DSKJLSW7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 March 16, 2020 at 11:59 p.m. ET: To be assured of consideration, submit written comments by March 16, 2020. ADDRESSES: Submit public comments through the Federal eRulemaking Portal: https://www.regulations.gov. The docket number is USTR–2020–0002. USTR strongly encourages all commenters to use Form A in submitting comments. If applicable, Form B (which requests Business Confidential Information (BCI)), along with a copy of the corresponding Form A, must be submitted via email at 301bcisubmissions@ustr.eop.gov. See the submission instructions below. For questions about this notice, contact USTR Assistant General Counsels Philip Butler or Benjamin Allen at (202) 395– 5725. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: 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 40823 (August 16, 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 43304 (August 20, 2019), 84 FR 45821 (August 30, 2019), 84 FR 69447 (December 18, 2019), and 85 FR 3741 (January 22, 2020). 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. 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 PO 00000 Frm 00191 Fmt 4703 Sfmt 4703 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). 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 periodically would announce decisions. The U.S. Trade Representative has granted multiple sets of exclusions. The third set of exclusions was granted in April 2019, and is scheduled to expire on April 18, 2020. See 84 FR 16310 (April 2019 notice). B. Possible Extensions of Particular Product Exclusions The U.S. Trade Representative has decided to consider a possible extension for up to 12 months of particular exclusions granted in the April 2019 notice. Accordingly, USTR invites public comments on whether to extend particular exclusions granted in the April 2019 notice. At this time, USTR is not considering comments concerning possible extensions of exclusions granted under any other product exclusion notice. USTR will evaluate the possible extension of each exclusion on a caseby-case basis. The focus of the evaluation will be whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China. In addressing this factor, commenters should address specifically: • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries. • Any changes in the global supply chain since July 2018 with respect to the E:\FR\FM\05FEN1.SGM 05FEN1 EN05FE20.020</GPH> [FR Doc. 2020–02225 Filed 2–4–20; 8:45 am] 6687

Agencies

[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Notices]
[Pages 6674-6687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02225]


=======================================================================
-----------------------------------------------------------------------

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: In September of 2018, the U.S. Trade Representative imposed 
additional duties on goods of China with an annual trade value of 
approximately $200 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 initiated a product exclusion process in June 
2019, and interested persons have submitted requests for the exclusion 
of specific products. This notice announces the U.S. Trade 
Representative's determination to grant certain exclusion requests, as 
specified in the Annex to this notice, and corrects technical errors in 
previously announced exclusions.

DATES: The product exclusions announced in this notice will apply as of 
September 24, 2018, the effective date of the $200 billion action, to 
August 7, 2020. The amendments announced in this notice are retroactive 
to the date the original exclusions were published.

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 
47974 (September 21, 2018), 83 FR 49153 (September 28, 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 FRN 38717 (August 7, 2019), 
84 FR 46212 (September 3, 2019), 84 FR 49591 (September 20, 2019), 84 
FR 57803 (October 28, 2019), 84 FR 61674 (November 13, 2019), 84 FR 
65882 (November 29, 2019), 84 FR 69012 (December 17, 2019), and 85 FR 
549 (January 6, 2020).
    Effective September 24, 2018, the U.S. Trade Representative imposed 
additional 10 percent duties on goods of China classified in 5,757 full 
and partial subheadings of the Harmonized Tariff Schedule of the United 
States (HTSUS), with an approximate annual trade value of $200 billion. 
See 83 FR 47974, as modified by 83 FR 49153. In May 2019, the U.S. 
Trade Representative increased the additional duty to 25 percent. See 
84 FR 20459. On June 24, 2019, the U.S. Trade Representative 
established a process by which U.S. stakeholders may request exclusion 
of particular products classified within an 8-digit HTSUS subheading 
covered by the $200 billion action from the additional duties. See 84 
FR 29576 (the June 24 notice).
    Under the June 24 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 $200 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 June 24 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 June 24 notice required submission of requests for exclusion 
from the $200 billion action no later than September 30, 2019, and 
noted that the U.S. Trade Representative would periodically announce 
decisions. In August 2019, the U.S. Trade Representative granted an 
initial set of exclusion requests. See 84 FR 38717. The U.S. Trade 
Representative granted additional exclusions in September 2019, October 
2019, November 2019, December 2019, and January 2020. See 84 FR 49591, 
84 FR 57803, 84 FR 61674, 84 FR 65882, 84 FR 69012, 85 FR 549. The 
Office of the United States Trade Representative (USTR) regularly 
updates the status of each pending request on the USTR Exclusions 
Portal at https://exclusions.ustr.gov/s/docket?docketNumber=USTR-2019-0005.

B. Determination To Grant Certain Exclusions

    Based on the evaluation of the factors set forth in the June 24 
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 forth 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 forth in the Annex, the exclusions are reflected in 2 10-
digit HTSUS subheadings, which cover 52 requests, and 117 specially 
prepared product descriptions, which cover 156 separate exclusion 
requests.
    In accordance with the June 24 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 found in any particular 
request for exclusion.
    Subparagraphs A(3-7) of the Annex contain conforming amendments to 
the HTSUS reflecting the modifications made by the Annex. Paragraph B 
of the Annex contains amendments reflecting technical corrections to 
the specially prepared product descriptions in certain notes to the 
HTSUS, specifically U.S.

[[Page 6675]]

note 20(ll)(26), published at 84 FR 57803 (October 29, 2019), and U.S. 
note 20(nn)(20), published at 84 FR 61674 (November 13, 2019).
    As stated in the September 20, 2019 notice, the exclusions will 
apply from September 24, 2018, to August 7, 2020. 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-F0-P

[[Page 6676]]

[GRAPHIC] [TIFF OMITTED] TN05FE20.009


[[Page 6677]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.010


[[Page 6678]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.011


[[Page 6679]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.012


[[Page 6680]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.013


[[Page 6681]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.014


[[Page 6682]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.015


[[Page 6683]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.016


[[Page 6684]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.017


[[Page 6685]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.018


[[Page 6686]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.019


[[Page 6687]]


[GRAPHIC] [TIFF OMITTED] TN05FE20.020

[FR Doc. 2020-02225 Filed 2-4-20; 8:45 am]
 BILLING CODE 3290-F0-C