Notice of Product Exclusion Extensions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 20332-20333 [2020-07564]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 85, Number 70 (Friday, April 10, 2020)]
[Notices]
[Pages 20332-20333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07564]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion Extensions: 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 exclusion extensions.

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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, 
to date, has granted ten sets of exclusions under the $34 billion 
action. The third set of exclusions was published in April 2019 and 
will expire in April 2020. On February 5, 2020, the U.S. Trade 
Representative established a process for the public to comment on 
whether to extend particular exclusions granted in April 2019 for up to 
12 months. This notice announces the U.S. Trade Representative's 
determination to extend certain exclusions for 12 months.

DATES: The product exclusion extensions announced in this notice will 
apply as of April 18, 2020, and extend for one year. 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 Benjamin 
Allen, 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 
prior notices including 82 FR 40213 (August 23, 2017), 83 FR 14906 
(April 6, 2018), 83 FR 28710 (June 20, 2018), 83 FR 32181 (July 11, 
2018), 83 FR 67463 (December 28, 2018), 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), 84 FR 46212 (September 3, 
2019), 84 FR 49564 (September 20, 2019), 84 FR 52567 (October 2, 2019), 
84 FR 58427 (October 31, 2019), 84 FR 70616 (December 23, 2019), 84 FR 
72102 (December 30, 2019), 85 FR 6687 (February 5, 2020), 85 FR 12373 
(March 2, 2020), and 85 FR 16181 (March 20, 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 $34 billion action). 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).
    In April 2019, the U.S. Trade Representative granted a set of 
exclusion requests, which expire on April 18, 2020. See 83 FR 67463 
(the April 18 notice). On February 5, 2020, the U.S. Trade 
Representative invited the public to comment on whether to extend, by 
up to 12 months, particular exclusions granted in the April 18 notice. 
See 85 FR 6687 (the February 5 notice).
    Under the February 5 notice, commenters were asked to 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; and 
efforts, if any, importers or U.S. purchasers have undertaken since 
July 2018 to source the product from the United States or third 
countries.
    In addition, commenters who were importers and/or purchasers of the 
products covered by an exclusion were asked to provide information 
regarding their efforts 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, 
and whether these purchases are from a 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; 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 will 
result in severe economic harm to the commenter or other U.S. 
interests; and any additional information in support or in opposition 
of the extending the exclusion.
    The February 5 notice required the submission of comments no later 
than March 16, 2020.

[[Page 20333]]

B. Determination To Extend Certain Exclusions

    Based on the evaluation of the factors set out in the July 11 
notice and February 5 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 extend 
for 12 months certain product exclusions covered by the February 5 
notice, as 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 concerning the extension of 
the pertinent exclusion.
    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.
    As set out in the Annex, the U.S. Trade Representative has 
determined to extend the following exclusions granted under the April 
18, 2019 notice under heading 9903.88.07 and under U.S. note 20(j) to 
subchapter III of chapter 99 of the HTSUS: (2), (4), (6), (7), (11), 
(12), (14), and (21).

ANNEX

    Effective with respect to good entered for consumption, or 
withdrawn from warehouse for consumption, on or after 12:01 a.m. 
eastern daylight time on July 6, 2018, and before April 18, 2021, the 
additional duties provided for in heading 9903.88.01 shall not apply to 
products which are provided for in heading 9903.88.07 and described by 
U.S. notes 20(j)(2), 20(j)(4), 20(j)(6), 20(j)(7), 20(j)(11), 
20(j)(12), 20(j)(14) and 20(j)(21) to subchapter III of chapter 99 of 
the HTSUS, as follows:
    (2) Roller machines designed for cutting, etching or embossing 
paper, foil or fabric, manually powered (described in statistical 
reporting number 8420.10.9080)
    (4) Ratchet winches designed for use with textile fabric strapping 
(described in statistical reporting number (8425.39.0100)
    (6) Counterweight castings of iron or steel designed for use on 
fork lift and other work trucks (described in statistical reporting 
number 8431.20.0000)
    (7) Tines, carriages, and other goods handling apparatus and parts 
designed for use on fork lift and other works trucks (described in 
statistical reporting number 8431.20.0000)
    (11) Reject doors, pin protectors, liners, front walls, grates, 
hammers, rotor and end disc caps, and anvil and breaker bars, of iron 
or steel, the foregoing parts of metal shredders (described in 
statistical reporting number 8479.90.9496)
    (12) Steering wheels designed for watercraft, of stainless steel, 
having a wheel diameter exceeding 27 cm but not exceeding 78 cm 
(described in statistical reporting number 8479.90.9496)
    (14) Pipe brackets of aluminum, each with 4 ports, the foregoing 
measuring 27.9 cm x 20.3 cm x 17.8 cm and weighing 11.34 kg, designed 
for installation into air brake control valves (described in 
statistical reporting number 8481.90.9040)
    (21) Instruments for measuring or checking voltage or electrical 
connections; electrical circuit tracers (described in statistical 
reporting number 9030.33.3800)

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
[FR Doc. 2020-07564 Filed 4-9-20; 8:45 am]
 BILLING CODE 3290-F0-P