Notice of Product Exclusion Amendment: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 42970 [2020-15289]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 85, Number 136 (Wednesday, July 15, 2020)]
[Notices]
[Page 42970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15289]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion Amendment: China's Acts, Policies, 
and Practices Related to Technology Transfer, Intellectual Property, 
and Innovation

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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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's determination included a decision to establish a 
product exclusion process, which was initiated in July 2018. 
Stakeholders submitted requests for the exclusion of specific products 
and the U.S. Trade Representative has issued determinations to grant 
exclusion requests. This notice announces the U.S. Trade 
Representative's determination to make a technical amendment to a 
previously granted exclusion.

DATES: This technical amendment is retroactive to the date of 
publication of the original exclusion and does not extend the period 
for the original exclusion. 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:

A. Background

    For background on the proceedings in this investigation, please see 
prior notices including 82 FR 40213 (August 24, 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), 85 FR 7816 (February 11, 2020), 85 FR 28692 (May 
13, 2020), and 85 FR 35158 (June 8, 2020).
    Effective July 6, 2018, the U.S. Trade Representative imposed 
additional 25 percent duties on goods of China classified in 818 eight-
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 eight-
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 eight-digit subheading covered by the $34 billion action. 
Requestors also had to provide the ten-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 objective 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 announced additional determinations in March, April, 
May, June, July, September, October, and December 2019; and February, 
May, and June 2020. See 84 FR 11152; 84 FR 16310; 84 FR 21389; 84 FR 
25895; 84 FR 32821; 84 FR 49564; 84 FR 52567; 84 FR 69016; 85 FR 7816; 
85 FR 28692; and 85 FR 35158.

B. Technical Amendments to Exclusions

    The Annex to this notice makes one technical amendment to U.S. note 
20(x)(97) to subchapter III of chapter 99 of the HTSUS, as set out in 
the Annex of the notice published at 85 FR 7816 (February 11, 2020).
    The U.S. Trade Representative will continue to issue determinations 
on a periodic basis as needed.

Annex

    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, and before October 2, 2020:
    1. U.S. note 20(x)(97) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States, is modified by 
deleting ``Multi-phase AC motors of an output of at least 5.8 kW but 
not exceeding 14.92 kW, each assembled with planetary gears and a 
gearbox (described in statistical reporting number 8501.52.4000).''

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-15289 Filed 7-14-20; 8:45 am]
BILLING CODE 3290-F0-P