Notice of Product Exclusion Amendment: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 63329-63330 [2020-22198]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 85, Number 195 (Wednesday, October 7, 2020)]
[Notices]
[Pages 63329-63330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22198]


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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: In September 2018, the U.S. Trade Representative imposed 
additional duties on goods of China with an annual trade value of 
approximately $200 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 a product exclusion process in June 24, 
2019, and has granted 16 sets of exclusions under the $200 billion 
action. These exclusions expired on August 7, 2020. This notice 
announces the U.S. Trade Representative's determination to make one 
technical amendment to a previously announced exclusion.

DATES: As stated in the September 20, 2019 notice, product exclusions 
will apply from September 24, 2018 to August 7, 2020. The amendment 
announced in this notice is retroactive to the date the original 
exclusion was published and does not further 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 Megan 
Grimball, 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 47974 (September 21, 2018), 
83 FR 49153 (September 28, 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 38717 (August 7, 2019), 84 FR 46212 (September 3, 
2019), 84 FR 49591 (September 20, 2019), 84 FR 57803 (October 28, 
2019), 84 FR 61674 (November 13, 2019), 84 FR 65882 (November 29, 
2019), 84 FR 69012 (December 17, 2019), 85 FR 549 (January 6, 2020), 85 
FR 6674 (February 5, 2020), 85 FR 9921 (February 20, 2020), 85 FR 15015 
(March 16, 2020), 85 FR 17158 (March 26, 2020), 85 FR 23122 (April 24, 
2020), 85 FR 27489 (May 8, 2020), 85 FR 32094 (May 28, 2020), 85 FR 
38000 (June 24, 2020), 85 FR 42968 (July 15, 2020), 85 FR 48600 (August 
11, 2020), and 85 FR 52188 (August 24, 2020).
    Effective September 24, 2018, the U.S. Trade Representative imposed 
additional 10 percent ad valorem duties on goods of China classified in 
5,757 full and partial subheadings of the Harmonized Tariff Schedule of 
the United States (HTSUS), with an approximate annual trade value of 
$200 billion. See 83 FR 47974, as modified by 83 FR 49153. In May 2019, 
the U.S. Trade Representative increased the additional duty to 25 
percent. See 84 FR 20459. On June 24, 2019, the U.S. Trade 
Representative established a process by which stakeholders could 
request exclusion of particular products classified within an eight-
digit HTSUS subheading covered by the $200 billion action from the 
additional duties. See 84 FR 29576 (June 24 notice). The U.S. Trade 
Representative issued a notice setting out the process for product 
exclusions and opened a public docket. The exclusions the U.S. Trade 
Representative granted under the $200 billion action expired on August 
7, 2020. See 84 FR 38717 (August 7, 2019).
    Under the June 24 notice, requests for exclusion were required 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 HTSUS subheading covered by the $200 billion 
action. Requestors were also required to provide the ten-digit HTSUS 
subheading 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

[[Page 63330]]

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 June 24 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 June 24 notice required submission of requests for exclusion 
from the $200 billion action no later than September 30, 2019, and 
noted that the U.S. Trade Representative periodically would announce 
decisions. In August 2019, the U.S. Trade Representative granted an 
initial set of exclusion requests. See 84 FR 38717. The U.S. Trade 
Representative granted additional exclusions in September, October, 
November, and December 2019, and January, February, March, April, May, 
June, and August 2020. See 84 FR 49591; 84 FR 57803; 84 FR 61674; 84 FR 
65882; 84 FR 69012; 85 FR 549; 85 FR 6674; 85 FR 9921; 85 FR 15015; 85 
FR 17158; 85 FR 23122; 85 FR 27489; 85 FR 32094; 85 FR 38000; 85 FR 
52188. The status of each request is posted on the portal at https://exclusions.ustr.gov/s/docket?docketNumber=USTR-2019-0005.

B. Technical Amendment to an Exclusion

    The Annex makes one technical amendment to U.S. note 20(w)(27) to 
subchapter III of chapter 99 of the HTSUS, as set out in the Annex of 
the notice published at 84 FR 49591 (September 20, 2019).

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 September 24, 2018, U.S. note 20(w)(27) to 
subchapter III of chapter 99 of the Harmonized Tariff Schedule of 
the United States (HTSUS), is modified by deleting ``heading 8471 
not incorporating goods of headings 8541 or 8542'' and inserting 
``heading 8471, whether or not incorporating fan hubs or LEDs but 
not incorporating other goods of headings 8541 or 8542'' in lieu 
thereof.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-22198 Filed 10-6-20; 8:45 am]
BILLING CODE 3290-F1-P