Notice of Product Exclusion: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 28692-28693 [2020-10232]

Download as PDF 28692 Federal Register / Vol. 85, No. 93 / Wednesday, May 13, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES 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 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), 84 FR 52553 (October 2, 2019), 84 FR 69011 (December 17, 2019), and 85 FR 10808 (February 25, 2020). 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 Harmonized Tariff Schedule of the United States (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 could 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 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 the product 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 VerDate Sep<11>2014 19:53 May 12, 2020 Jkt 250001 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 objectives 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, and February 2020. See 84 FR 49600, 84 FR 52553, 85 FR 10808. B. Technical Amendments to Exclusions Subparagraph A of the Annex makes four technical amendments to U.S. notes 20(v)(2), 20(v)(8), 20(v)(78), and 20(y)(83) to subchapter III of chapter 99 of the HTSUS, as set out in the Annexes of the notice published at 84 FR 49600 (September 20, 2019) and 84 FR 52553 (October 2, 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)(2) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting ‘‘valued at $5.40 to $5.60 per kg’’ and inserting ‘‘valued at $4.00 to $7.00 per kg’’ in lieu thereof. 2. U.S. note (20)(v)(8) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting ‘‘20 cm or more in length’’ and inserting ‘‘18 cm or more in length’’ in lieu thereof. 3. U.S. note 20(v)(78) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting ‘‘(described in statistical reporting number 8541.10.0080)’’ and inserting ‘‘(described in statistical reporting number 8541.10.0050)’’ in lieu thereof. 4. U.S. note 20(y)(83) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting ‘‘storing downloadable readings’’ and inserting ‘‘storing downloadable readings PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 or storing temperature parameters’’ in lieu thereof. Joseph Barloon, General Counsel, Office of the United States Trade Representative. [FR Doc. 2020–10231 Filed 5–12–20; 8:45 am] BILLING CODE 3290–F0–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Notice of Product Exclusion: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation Office of the United States Trade Representative. AGENCY: Notice of product exclusion amendments. ACTION: 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, March, April, May, June, July, September, October, and December 2019, and February 2020 the U.S. Trade Representative issued determinations to grant exclusion requests on a rolling basis. This notice announces the U.S. Trade Representative’s determination to make certain technical amendments to previously granted exclusions. SUMMARY: The technical amendments announced in this notice are retroactive to the date the original exclusions were published and do not further extend the period for the original exclusions. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation. DATES: For general questions about this notice, contact Associate 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 traderemedy@cbp.dhs.gov. FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: E:\FR\FM\13MYN1.SGM 13MYN1 Federal Register / Vol. 85, No. 93 / Wednesday, May 13, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES 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 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), 84 FR 49564 (September 20, 2019), 84 FR 52567 (October 2, 2019), 84 FR 69016 (December 17, 2019), and 85 FR 7816 (February 11, 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). 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. VerDate Sep<11>2014 19:53 May 12, 2020 Jkt 250001 • 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 objectives 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 periodically would 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, September, October, and December 2019, and February 2020. See 84 FR 49600; 84 FR 52553; 85 FR 10808; 84 FR 11152; 84 FR 16310; 84 FR 21389; 84 FR 25895; 84 FR 32821; 84 FR 49564; 84 FR 52567; 84 FR 69016; and 85 FR 7816. B. Technical Amendments to Exclusions Subparagraph A of the Annex makes two technical amendments to U.S. notes 20(q)(184), and 20(q)(228) to subchapter III of chapter 99 of the HTSUS, as set out in the Annex of the notice published at 84 FR 49564 (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 July 6, 2018: 1. U.S. note 20(q)(184) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting ‘‘AC motors, multi-phase, of an output exceeding 37.5 W but not exceeding 74.6 W, each fitted with a timing belt (described in statistical reporting number 8501.51.4040)’’ and inserting ‘‘AC motors, 3 phase, fitted with a timing belt and of an output no less than 90 W but not exceeding 135 W (described in statistical reporting number 8501.51.4040)’’ in lieu thereof. 2. U.S. note 20(q)(228) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified by deleting ‘‘each valued not over $18’’ and PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 28693 inserting ‘‘each valued not over $39’’ in lieu thereof. Joseph Barloon, General Counsel, Office of the United States Trade Representative. [FR Doc. 2020–10232 Filed 5–12–20; 8:45 am] BILLING CODE 3290–F0–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: On August 20, 2019, at the direction of the President, the U.S. Trade Representative determined to modify the action being taken in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by imposing additional duties of 10 percent ad valorem on goods of China with an annual trade value of approximately $300 billion. The additional duties on products in List 1, which is set out in Annex A of that action, became effective on September 1, 2019. On August 30, 2019, at the direction of the President, the U.S. Trade Representative determined to increase the rate of the additional duty applicable to the tariff subheadings covered by the action announced in the August 20 notice from 10 percent to 15 percent. On January 22, 2020, the U.S. Trade Representative determined to reduce the rate from 15 percent to 7.5 percent. The U.S. Trade Representative initiated a product exclusion process in October 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 a technical error in a previously announced exclusion. The U.S. Trade Representative will continue to issue decisions on pending requests on a periodic basis. DATES: The product exclusions announced in this notice will apply as of September 1, 2019, the effective date of List 1 of the $300 billion action, and will extend to September 1, 2020. FOR FURTHER INFORMATION CONTACT: For general questions about this notice, contact Assistant General Counsels Philip Butler or Megan Grimball, or SUMMARY: E:\FR\FM\13MYN1.SGM 13MYN1

Agencies

Office of the United States Trade Representative

[Federal Register Volume 85, Number 93 (Wednesday, May 13, 2020)]
[Notices]
[Pages 28692-28693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10232]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion: 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 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, 
March, April, May, June, July, September, October, and December 2019, 
and February 2020 the U.S. Trade Representative issued determinations 
to grant exclusion requests on a rolling basis. This notice announces 
the U.S. Trade Representative's determination to make certain technical 
amendments to previously granted exclusions.

DATES: The technical amendments announced in this notice are 
retroactive to the date the original exclusions were published and do 
not further 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 Associate 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:

[[Page 28693]]

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 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), 84 FR 
49564 (September 20, 2019), 84 FR 52567 (October 2, 2019), 84 FR 69016 
(December 17, 2019), and 85 FR 7816 (February 11, 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).
    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 objectives 
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 periodically would 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, September, October, and December 2019, and February 2020. 
See 84 FR 49600; 84 FR 52553; 85 FR 10808; 84 FR 11152; 84 FR 16310; 84 
FR 21389; 84 FR 25895; 84 FR 32821; 84 FR 49564; 84 FR 52567; 84 FR 
69016; and 85 FR 7816.

B. Technical Amendments to Exclusions

    Subparagraph A of the Annex makes two technical amendments to U.S. 
notes 20(q)(184), and 20(q)(228) to subchapter III of chapter 99 of the 
HTSUS, as set out in the Annex of the notice published at 84 FR 49564 
(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 July 6, 2018:
    1. U.S. note 20(q)(184) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``AC motors, multi-phase, of an output exceeding 37.5 W but 
not exceeding 74.6 W, each fitted with a timing belt (described in 
statistical reporting number 8501.51.4040)'' and inserting ``AC 
motors, 3 phase, fitted with a timing belt and of an output no less 
than 90 W but not exceeding 135 W (described in statistical 
reporting number 8501.51.4040)'' in lieu thereof.
    2. U.S. note 20(q)(228) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``each valued not over $18'' and inserting ``each valued 
not over $39'' in lieu thereof.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-10232 Filed 5-12-20; 8:45 am]
 BILLING CODE 3290-F0-P

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