Notice of Product Exclusion Extensions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 62786-62792 [2020-21954]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 85, Number 193 (Monday, October 5, 2020)]
[Notices]
[Pages 62786-62792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21954]


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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.

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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 initiated an exclusion process in September 2018 
and granted three sets of exclusions under the $16 billion action. He 
published the third set of exclusions in September 2019 and added 
additional exclusions in February and July 2020. These exclusions will 
expire on October 2, 2020. On June 25, 2020, the U.S. Trade 
Representative established a process for the public to comment on 
whether to extend particular exclusions for up to 12 months. This 
notice announces the U.S. Trade Representative's determination to 
extend certain exclusions through December 31, 2020.

DATES: The product exclusion extensions announced in this notice apply 
as of October 2, 2020, and extend through December 31, 2020. 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 Assistant 
General Counsel 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 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 24076

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(April 30, 2020), 85 FR 28691 (May 13, 2020), 85 FR 38237 (June 25, 
2020), 85 FR 38243 (June 25, 2020), 85 FR 43291 (July 16, 2020), 85 FR 
45949 (July 30, 2020), and 85 FR 59595 (September 22, 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 $16 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 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).
    In September 2019, the U.S. Trade Representative granted a set of 
exclusion requests and added additional exclusions in February and July 
2020. See 84 FR 49600 (September 20 notice); 85 FR 10808 (February 25 
notice); 85 FR 43291 (July 16 notice). The exclusions granted under 
these notices expire on October 2, 2020. On June 25, 2020, the U.S. 
Trade Representative invited the public to comment on whether to extend 
for up to 12 months particular exclusions granted under these notices. 
See 85 FR 38243 (June 25 notice).
    Under the June 25 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 August 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 
August 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 August 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 and 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 and 2019; the 
commenter's gross revenue for 2018 and 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 June 25 notice required the submission of comments no later 
than July 30, 2020.

B. Determination To Extend Certain Exclusions

    Based on an evaluation of the factors set out in the September 18 
and June 25 notices, 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 certain product 
exclusions covered by the September 20, February 25, and July 16 
notices, as set out in the Annexes to this notice.
    The June 25 notice said the U.S. Trade Representative would 
consider extensions of up to 12 months. In light of the cumulative 
effect of current and possible future exclusions or extensions of 
exclusions on the effectiveness of the action taken in this 
investigation, the U.S. Trade Representative has determined to extend 
the exclusions in the Annex to this notice for less than 12 months--
through December 31, 2020. To date, the U.S. Trade Representative has 
granted more than 6,800 exclusion requests, has extended some of these 
exclusions, and may consider further extensions of exclusions. The U.S. 
Trade Representative will take account of the cumulative effect of 
exclusions in considering the possible further extension of the 
exclusions covered by this notice, as well as possible extensions of 
exclusions of other products covered by the action in this 
investigation. The U.S. Trade Representative's determination also takes 
into account advice from advisory committees and any public comments 
concerning extension of the pertinent exclusion.
    In accordance with the September 18 notice, the exclusions are 
available for any product that meets the description in the Annexes, 
regardless of whether the importer filed an exclusion request. Further, 
the scope of each exclusion is governed by the scope of the ten-digit 
HTSUS headings and product descriptions in the Annexes to this notice, 
and not by the product descriptions set out in any particular request 
for exclusion.

Joseph Barloon,
General Counsel,Office of the United States Trade Representative.

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[FR Doc. 2020-21954 Filed 10-2-20; 8:45 am]
BILLING CODE 3290-F0-C