Notice of Product Exclusion Amendment: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 49414-49415 [2020-17654]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 85, Number 157 (Thursday, August 13, 2020)]
[Notices]
[Pages 49414-49415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17654]


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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 August 23, 2018, the U.S. Trade Representative 
imposed additional duties on goods of China with an annual trade value 
of approximately $16 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 September 2018, and stakeholders have submitted 
requests for the exclusion of specific products. In July, September, 
and October 2019, and February and July 2020, the U.S. Trade 
Representative granted exclusion requests. This notice announces the 
U.S. Trade Representative's determination to make an amendment to a 
previously granted exclusion.

DATES: The amendment is retroactive to the date the original exclusion 
was published 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 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), 85 FR 10808 (February 25, 2020), 85 FR 28691 
(May 13, 2020), and 85 FR 43291 (July 16, 2020).
    Effective August 23, 2018, the U.S. Trade Representative imposed 
additional 25 percent duties on goods of China classified in 279 eight-
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 eight-
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 (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 eight-digit subheading covered by the $16 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 September 18 notice stated that the U.S. Trade Representative 
would take into account whether an exclusion would undermine the 
objective of the Section 301 investigation.

[[Page 49415]]

    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 and July 2020. See 84 FR 49600; 84 FR 52553; 85 FR 
10808; 85 FR 43291.

B. Technical Amendment to Exclusion

    Subparagraph A of the Annex makes one technical amendment to U.S. 
note 20(o)(63) to subchapter III of chapter 99 of the HTSUS, as set out 
in the Annexes of the notices published at 84 FR 37381 (July 31, 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(o)(63) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States, as modified by 85 FR 
43291 (July 16, 2020), Annex B(1), is further modified by deleting 
``Digital clinical thermometers, valued not over $11 each'' and 
inserting ``Digital clinical thermometers'' in lieu thereof.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-17654 Filed 8-12-20; 8:45 am]
BILLING CODE 3290-F0-P