Request for Comments Concerning the Extension of Particular Exclusions Granted Under the May 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, 12373-12381 [2020-04207]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 85, Number 41 (Monday, March 2, 2020)]
[Notices]
[Pages 12373-12381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04207]


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

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2020-0009]


Request for Comments Concerning the Extension of Particular 
Exclusions Granted Under the May 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

AGENCY: Office of the United States Trade Representative.

ACTION: Notice and request for comments.

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

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 initiated the exclusion process in July 2018 and 
granted multiple sets of exclusions. The fourth set of exclusions was 
granted in May 2019, and are scheduled to expire on May 14, 2020. The 
U.S. Trade Representative has decided to consider a possible extension 
for up to 12 months of particular exclusions granted in May 2019. The 
Office of the U.S. Trade Representative (USTR) invites public comment 
on whether to extend particular exclusions.

DATES: 
    March 12, 2020 at 12:01 a.m. ET: The docket (USTR-2020-0009) will 
open for comments on the possible extension of particular exclusions.
    April 12, 2020 at 11:59 p.m. ET: To be assured of consideration, 
submit written comments by this deadline.

ADDRESSES: Submit public comments through the Federal eRulemaking 
Portal: https://www.regulations.gov. The docket number is USTR-2020-
0009. USTR strongly encourages all commenters to use Form A to submit 
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 [email protected]. See the 
submission instructions below.

FOR FURTHER INFORMATION CONTACT: USTR Assistant General Counsels Philip 
Butler or Benjamin Allen at (202) 395-5725.

SUPPLEMENTARY INFORMATION:

[[Page 12374]]

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 could 
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).
    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 granted multiple sets of 
exclusions. The fourth set of exclusions was granted in May 2019, and 
are scheduled to expire on May 14, 2020. See 84 FR 21389 (May 14, 2019) 
(May 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 
May 2019 notice. Accordingly, USTR invites public comments on whether 
to extend particular exclusions granted in the May 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 
case-by-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 specifically should address:
     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 particular product or any other relevant industry 
developments.
     The efforts, if any, the importers or U.S. purchasers have 
undertaken since July 2018 to source the product from the United States 
or third countries.

In addition, USTR will continue to consider whether the imposition of 
additional duties on the products covered by the exclusion will result 
in severe economic harm to the commenter or other U.S. interests.
    USTR strongly encourages that commenters complete Form A (which 
will be posted on USTR's website by the time the docket opens) and 
submit the completed Form A to https://www.regulations.gov. The docket 
number is USTR-2020-0009. USTR will post completed Form A's on the 
public docket.
    In addition to submitting Form A, commenters who are importers and/
or purchasers of the products covered by the exclusion also should 
complete Form B (which will be posted on USTR's website by the time the 
docket opens) and submit it, along with a copy of their completed Form 
A, via email at [email protected]. Form A must be 
submitted via email with Form B and submitted as a single document 
(without Form B) to docket USTR-2020-0009 at https://www.regulations.gov.
    Form B requests BCI information, and will not be posted on the 
public docket. To facilitate advance preparation of submissions, 
facsimiles of Forms A and B are annexed to this notice and will be 
available electronically at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china/34-billion-trade-action.
    Set forth below is a summary of the information to be entered on 
Form A:
     Contact information, including the full legal name of the 
organization making the comment, whether the commenter is a third party 
(e.g., law firm, trade association, or customs broker) submitting on 
behalf of an organization or industry, and the name of the third party 
organization, if applicable.
     The publication date of the Federal Register notice 
containing the exclusion on which you are commenting. Since USTR at 
this time only is considering exclusions granted by the May 2019 
notice, this field must specify May 14, 2019.
     The full article description for the exclusion you are 
commenting on and the 10-digit code, as provided in the Federal 
Register notice granting the exclusion. Please indicate if the 
exclusion is a 10-digit HTSUS code (covering all products under a 
single 10-digit HTSUS number).
     Whether the product or products covered by the exclusion 
are subject to an antidumping or countervailing duty order issued by 
the U.S. Department of Commerce.
     Whether you support or oppose extending the exclusion and 
an explanation of your rationale. Commenters must provide a public 
version of their rationale, even if the commenter also is submitting a 
Form B with more detailed, confidential information.
     Whether the products covered by the exclusion or 
comparable products are available from sources in the U.S. or in third 
countries. Please include information concerning any changes in the 
global supply chain since July 2018 with respect to the particular 
product.
     Whether the commenter will be submitting Form B.
    As indicated above, information submitted on Form B will not be 
publically available. Form B requires commenters who are importers and/
or purchasers of the products covered by the exclusion to provide the 
following information:
     The efforts you have undertaken since July 2018 to source 
the product from the United States or third countries.
     The value and quantity of the Chinese-origin product 
covered by the specific exclusion request purchased in 2018, the first 
half of 2018, and the first half of 2019. Whether these purchases are 
from a related company, and if so, the name of and relationship to the 
related company.
     Whether Chinese suppliers have lowered their prices for 
products covered by the exclusion following the imposition of duties.
     The value and quantity of the product covered by the 
exclusion purchased from domestic and third country sources in 2018, 
the first half of 2018, and the first half of 2019.
     If applicable, the commenter's gross revenue for 2018, the 
first half of 2018, and the first half of 2019.
     Whether the Chinese-origin product of concern is sold as a 
final product or as an input.
     Whether the imposition of duties on the products covered 
by the exclusion

[[Page 12375]]

will result in severe economic harm to the commenter or other U.S. 
interests.
     Any additional information in support or in opposition of 
the extending the exclusion.
    Commenters also may provide any other information or data that they 
consider relevant.

C. Submission Instructions

    To be assured of consideration, you must submit your comment 
between the opening of the docket on March 12, 2020, and the April 12, 
2020 submission deadline. By submitting a comment, you are certifying 
that the information provided is complete and correct to the best of 
your knowledge.

D. Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 and its implementing regulations, the Office of Management and 
Budget has assigned control number 0350-0015, which expires January 31, 
2023, to this information collection.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
 BILLING CODE 3290-F0-P

[[Page 12376]]

[GRAPHIC] [TIFF OMITTED] TN02MR20.001


[[Page 12377]]


[GRAPHIC] [TIFF OMITTED] TN02MR20.002


[[Page 12378]]


[GRAPHIC] [TIFF OMITTED] TN02MR20.003


[[Page 12379]]


[GRAPHIC] [TIFF OMITTED] TN02MR20.004


[[Page 12380]]


[GRAPHIC] [TIFF OMITTED] TN02MR20.005


[[Page 12381]]


[GRAPHIC] [TIFF OMITTED] TN02MR20.006

[FR Doc. 2020-04207 Filed 2-28-20; 8:45 am]
 BILLING CODE 3290-F0-C