Proposed Action in Section 301 Investigation of the United Kingdom's Digital Services Tax, 16829-16832 [2021-06628]
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Federal Register / Vol. 86, No. 60 / Wednesday, March 31, 2021 / Notices
Greta Peisch,
General Counsel, Office of the United States
Trade Representative.
May 4, 2021 at 9:30 a.m.: Virtual
hearing on the United Kingdom DST
proposed action.
May 10, 2021: To be assured of
consideration, submit multijurisdictional hearing rebuttal
comments by this date.
May 11, 2021: To be assured of
consideration, submit the United
Kingdom DST hearing rebuttal
comments by this date.
ADDRESSES: Submit documents in
response to this notice, including
written comments and hearing
appearance requests, through the online
USTR portal: https://
comments.ustr.gov/s/.
FOR FURTHER INFORMATION CONTACT: For
questions concerning the investigation,
please contact Ben Allen or Patrick
Childress, Assistant General Counsels at
(202) 395–9439 and (202) 395–9531,
respectively; Robert Tanner, Director,
Services and Investment at (202) 395–
6125; or Michael Rogers, Director,
Europe and the Middle East at (202)
395–2684. For issues with on-line
submissions, please contact the USTR
Section 301 line at (202) 395–5725.
SUPPLEMENTARY INFORMATION:
[FR Doc. 2021–06612 Filed 3–30–21; 8:45 am]
I. Proceedings in the Investigation
Under section 303 of the Trade Act,
the U.S. Trade Representative requested
consultations with the government of
the United Kingdom regarding the
issues involved in the investigation.
Consultations were held on December 4,
2020.
Based on information obtained during
the investigation, USTR prepared a
comprehensive report on the United
Kingdom’s DST (United Kingdom DST
Report). The United Kingdom DST
Report is posted on the USTR website
at https://ustr.gov/issue-areas/
enforcement/section-301-investigations/
section-301-digital-services-taxes. The
report includes a full description of the
United Kingdom’s DST, and supports
findings that the United Kingdom’s DST
is unreasonable and discriminatory and
burdens or restricts U.S commerce.
On January 14, 2021, based on the
information obtained during the
investigation and the advice of the
Section 301 Committee, the U.S. Trade
Representative determined that the
United Kingdom’s DST is unreasonable
or discriminatory and burdens or
restricts U.S. commerce, and therefore is
actionable under sections 301(b) and
304(a) of the Trade Act (19 U.S.C.
2411(b) and 2414(a)). See 86 FR 6406
(January 21, 2021).
BILLING CODE 3290–F1–P
The United Kingdom’s has adopted a
DST that applies a two percent tax on
the revenues of certain search engines,
social media platforms and online
marketplaces. The United Kingdom’s
DST applies only to companies with
digital services revenues exceeding £500
million and United Kingdom digital
services revenues exceeding £25
million.
On June 2, 2020, the U.S. Trade
Representative initiated an investigation
of the United Kingdom’s DST pursuant
to section 302(b)(1)(A) of the Trade Act
of 1974, as amended (Trade Act). See 85
FR 34709 (June 5, 2020) (notice of
initiation). The notice of initiation
solicited written comments on, inter
alia, the following aspects of the United
Kingdom’s DST: Discrimination against
U.S. companies; retroactivity; and
possibly unreasonable tax policy. With
respect to tax policy, USTR solicited
comments on, inter alia, whether the
DST diverged from principles reflected
in the U.S. and international tax systems
including extraterritoriality; taxing
revenue not income; and a purpose of
penalizing particular technology
companies for their commercial success.
Interested persons filed over 380 written
submissions in response. The public
submissions are available on
www.regulations.gov in docket number
USTR–2020–0022.
II. Proposed Action
Section 301(b) provides that upon
determining that the acts, policies, and
practices under investigation are
actionable and that action is
appropriate, the U.S. Trade
Representative shall take all appropriate
and feasible action authorized under
section 301(c), subject to the specific
direction, if any, of the President
regarding such action, and all other
appropriate and feasible action within
the power of the President that the
President may direct the U.S. Trade
Representative to take under section
301(b), to obtain the elimination of that
act, policy, or practice.
Section 301(c)(1)(B) of the Trade Act
authorizes the U.S. Trade
Representative to impose duties on the
goods of the foreign country subject to
the investigation. Pursuant to sections
301(b) and (c), USTR proposes that the
U.S. Trade Representative should
determine that action is appropriate and
that appropriate action would include
the imposition of additional ad valorem
tariffs on certain products of the United
Kingdom.
In particular, USTR proposes to
impose additional tariffs of up to 25
percent ad valorem on an aggregate
level of trade that would collect duties
on goods of the United Kingdom in the
range of the amount of the DST that the
under consideration, outlines USTR’s
preliminary concerns with each of the
proposed DSTs, and notes that USTR
would continue to monitor the status.
As of March 25, 2021, Brazil, the
Czech Republic, and the European
Union have not adopted DSTs, and
Indonesia has not implemented a DST.
Under the Section 301 statute,
determinations must be made within
one year of initiation, or in this case by
June 2, 2021. Even if one or more of
these jurisdictions were to adopt or
implement a DST prior to June 2, USTR
would not have sufficient time to
determine whether the DST was
actionable under Section 301 and, if so,
what action, if any, to take to obtain the
elimination of the measure.
Accordingly, the U.S. Trade
Representative has determined that it is
appropriate to terminate these
investigations at this time. USTR will
continue to monitor the status of any
proposed or adopted DST in these four
jurisdictions, and may, if appropriate,
initiate one or more new Section 301
investigations.
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
[Docket Number USTR–2021–0007]
Proposed Action in Section 301
Investigation of the United Kingdom’s
Digital Services Tax
Office of the United States
Trade Representative.
ACTION: Request for comments and
notice of public hearing.
AGENCY:
The Office of the United
States Trade Representative (USTR)
requests written comments regarding a
potential trade action in connection
with the Section 301 investigation of the
United Kingdom’s Digital Services Tax
(DST). USTR also will convene virtual
public hearings and accept rebuttal
comments in relation to the potential
action.
SUMMARY:
DATES:
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16829
April 21, 2021: To be assured of
consideration, submit requests to appear
at a hearing, along with a summary of
the testimony, by this date.
April 30, 2021: To be assured of
consideration, submit written comments
by this date.
May 3, 2021: Multi-jurisdictional
virtual hearing on proposed actions.
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Federal Register / Vol. 86, No. 60 / Wednesday, March 31, 2021 / Notices
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United Kingdom is expected to collect
from U.S. companies. Initial estimates
indicate that the value of the DST
payable by U.S.-based company groups
to the United Kingdom will be up to
approximately $325 million per year.
USTR further proposes that the goods
of the United Kingdom subject to
additional tariffs would be drawn from
the preliminary list of products in the
Annex to this notice, as specified by the
listed eight-digit tariff subheadings.
III. Request for Public Comments
In accordance with section 304(b) of
the Trade Act (19 U.S.C. 2414(b)), USTR
invites comments from interested
persons with respect to whether action
is appropriate, and if so, the appropriate
action to be taken.
USTR requests comments with
respect to any issue related to the action
to be taken in this investigation. With
respect to the proposed tariff action
outline above, USTR specifically invites
comments regarding:
• The level of the burden or
restriction on U.S. commerce resulting
from the United Kingdom’s DST,
including the amount of DST payments
owed by U.S. companies, the annual
growth rate of such payments, and other
effects, such as compliance costs.
• The appropriate aggregate level of
trade to be covered by additional duties.
• The level of the increase, if any, in
the rate of duty.
• The specific products to be subject
to increased duties, including whether
the tariff subheadings listed in the
Annex should be retained or removed,
or whether tariff subheadings not
currently on the list should be added.
In commenting on the inclusion or
removal of particular products on the
preliminary list of products subject to
the proposed additional duties, USTR
requests that commenters specifically
address whether imposing increased
duties on a particular product would be
practicable or effective to obtain the
elimination of the United Kingdom’s
acts, policies, and practices, and
whether imposing additional duties on
a particular product would cause
disproportionate economic harm to U.S.
interests, including small- or mediumsize businesses and consumers.
Simultaneously with this notice,
USTR also is requesting public
comments on proposed trade actions in
five other DST investigations initiated at
the same time as the United Kingdom
DST investigation. Certain interested
persons may wish to provide written
comments or oral testimony on multijurisdictional issues common to two or
more investigations. To avoid
duplication, the USTR portal will have
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18:54 Mar 30, 2021
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a separate docket for multijurisdictional submissions, and USTR
will hold a separate multi-jurisdictional
hearing.
To be assured of consideration, you
must submit written comments on the
proposed action by April 30, 2021, and
post-hearing rebuttal comments by May
10, 2021 for the multi-jurisdictional
hearing, and by May 11, 2021 for the
United Kingdom DST hearing.
IV. Hearing Participation
The Section 301 Committee will
convene a virtual public hearing for
comments pertaining to the United
Kingdom DST proposed action on May
4, 2021, beginning at 9:30 a.m. Those
requesting to appear at this hearing
should have comments applicable only
to the United Kingdom DST proposed
action.
The Section 301 Committee will
convene a virtual public hearing for
comments pertaining to multiple
jurisdictions on May 3, 2021, beginning
at 9:30 a.m. Those requesting to appear
at the multi-jurisdictional hearing
should have comments that are
applicable to two or more DST
investigations.
For either hearing, you must submit a
request to appear at the specific hearing
using the electronic portal at https://
comments.ustr.gov/s/. You will be able
to view a docket entitled ‘Request to
Appear at Hearing on Proposed Action
in Section 301 Investigation of the
United Kingdom’s Digital Services Tax.’
Requests to appear must include a
summary of testimony, and may be
accompanied by a pre-hearing
submission. Remarks at the hearing are
limited to five minutes to allow for
possible questions from the Section 301
Committee. All submissions must be in
English. To be assured of consideration,
USTR must receive your request to
appear by April 21, 2021.
V. Procedures for Written Submissions
You must submit written comments,
rebuttal comments, and requests to
appear at the hearing using the
electronic portal at https://
comments.ustr.gov/s. You will be able to
view a docket entitled ‘Comments
Concerning Proposed Action in Section
301 Investigation of the United
Kingdom’s Digital Services Tax’ on the
portal, docket number USTR–2021–
0007.
You do not need to establish an
account to submit comments. Fields
with a gray (BCI) notation are for
Business Confidential Information and
the information entered will not be
publicly available. Required fields are
marked ‘Required’ and will have a red
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asterisk (*). Fields with a green (Public)
notation will be viewable by the public.
The first screen of the portal requires
you to enter identification and contact
information. Third party organizations
such as law firms, trade associations, or
customs brokers, should identify the full
legal name of the organization they
represent, and identify the primary
point of contact for the submission. The
remaining fields of the form are
optional.
After entering the identification and
contact information, you can complete
the remainder of the questionnaire, or
any portion of it by clicking ‘Next.’ You
can comment on multiple products in a
single entry, or submit multiple
comments. You will be able to navigate
through each screen of the form by
clicking ‘Next,’ with or without entering
a response to each field on an
individual screen or page. Additionally,
you will be able to upload documents at
the end of the form and designate
whether USTR should treat the
documents as business confidential or
public information.
For uploads containing BCI, the file
name of the business confidential
version should begin with the characters
‘BCI’. Any page containing BCI must be
clearly marked ‘BUSINESS
CONFIDENTIAL’ on the top of that page
and the submission should clearly
indicate, via brackets, highlighting, or
other means, the specific information
that is BCI. If you request business
confidential treatment, you must certify
in writing that disclosure of the
information would endanger trade
secrets or profitability, and that the
information would not customarily be
released to the public. Parties uploading
attachments containing BCI also must
submit a public version of their
comments. The file name of the public
version, which must be uploaded on
https://comments.ustr.gov/s/, should
begin with the character ‘P’. The ‘BCI’
and ‘P’ should be followed by the name
of the person or entity submitting the
comments or rebuttal comments. If these
procedures are not sufficient to protect
BCI or otherwise protect business
interests, please contact the USTR
Section Hotline 301 line at (202) 395–
5725 to discuss whether alternative
arrangements are possible. USTR will
post attachments uploaded to the docket
for public inspection, except for
attachments marked as business
confidential.
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Federal Register / Vol. 86, No. 60 / Wednesday, March 31, 2021 / Notices
You can view all public submissions
on the USTR portal at https://
comments.ustr.gov/s.
Greta Peisch,
General Counsel, Office of the United States
Trade Representative.
Annex
Note: All products that are classified in the
eight-digit subheadings of the Harmonized
Tariff Schedule of the United States (HTSUS)
that are listed in this Annex are covered by
the proposed action. The product
descriptions that are contained in this Annex
are provided for informational purposes only,
and are not intended to delimit in any way
the scope of the proposed action. Any
questions regarding the scope of a particular
HTSUS subheading should be referred to
U.S. Customs and Border Protection. In the
product descriptions, the abbreviation
HTSUS subheading
3213.90.00
3303.00.10
3303.00.20
3303.00.30
3304.10.00
3304.20.00
3304.30.00
3304.91.00
3304.99.10
3304.99.50
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
3305.10.00
3305.20.00
3305.30.00
3305.90.00
3306.90.00
3307.10.10
3307.10.20
3307.30.10
3307.30.50
3307.49.00
3307.90.00
4201.00.60
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
6104.43.20 .............
6201.12.20 .............
6201.92.45 .............
6202.12.20 .............
6202.13.40 .............
6202.92.90 .............
6204.43.40
6204.44.40
6204.49.10
6205.20.20
6215.10.00
6403.59.30
6403.59.90
6403.91.30
6403.99.60
.............
.............
.............
.............
.............
.............
.............
.............
.............
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6404.20.40 .............
6903.90.00
6907.23.90
6907.30.90
6909.19.50
6910.90.00
7113.11.50
7113.19.29
7113.19.50
7116.20.50
7117.19.90
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
8415.82.01
8418.40.00
8418.50.00
8418.69.01
.............
.............
.............
.............
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16831
‘‘nesoi’’ means ‘‘not elsewhere specified or
included’’.
Product description
Artists’, students’ or signboard painters’ colors, in tablets, tubes, jars, bottles, pans or in similar packings, not in sets.
Floral or flower waters, not containing alcohol.
Perfumes and toilet waters, other than floral or flower waters, not containing alcohol.
Perfumes and toilet waters, containing alcohol.
Lip make-up preparations.
Eye make-up preparations.
Manicure or pedicure preparations.
Beauty or make-up powders, whether or not compressed.
Petroleum jelly put up for retail sale.
Beauty or make-up preparations & preparations for the care of the skin, excl. medicaments but incl. sunscreen or sun tan
preparations, nesoi.
Shampoos.
Preparations for permanent waving or straightening the hair.
Hair lacquers.
Preparations for use on the hair, nesoi.
Preparations for oral or dental hygiene, including denture fixative pastes and powders, excluding dentifrices.
Pre-shave, shaving or after-shave preparations, not containing alcohol.
Pre-shave, shaving or after-shave preparations, containing alcohol.
Bath salts, whether or not perfumed.
Bath preparations, other than bath salts.
Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites, nesoi.
Depilatories and other perfumery, cosmetic or toilet preparations. nesoi.
Saddlery and harnesses for animals nesoi, (incl. traces, leads, knee pads, muzzles, saddle cloths and bags and the like),
of any material.
Women’s or girls’ dresses, knitted or crocheted, of synthetic fibers, nesoi.
Men’s or boys’ overcoats, carcoats, capes, & similar coats of cotton, not knit or crocheted, not containing 15% or more by
wt of down, etc.
Men’s or boys’ anoraks, windbreakers & sim articles nesoi, not knit/crochet, cotton, not cont. 15% or more by wt of down,
etc, o/than rec perf outwear.
Women’s or girls’ overcoats, carcoats, etc, not knitted or crocheted, of cotton, not containing 15% or more by weight of
down, etc.
Women’s or girls’ overcoats, carcoats, capes, cloaks and similar articles, not knitted or crocheted, of man-made fibers,
nesoi.
Women’s/girls’ anoraks, windbreakers & similar articles, nt knit/crochet, cotton, nt cont. 15% or more by wt of down, etc, o/
than rec perf outwear.
Women’s or girls’ dresses, not knitted or crocheted, of synthetic fibers, nesoi.
Women’s or girls’ dresses, not knitted or crocheted, of artificial fibers, nesoi.
Women’s or girls’ dresses, not knitted or crocheted, containing 70% or more by weight of silk or silk waste.
Men’s or boys’ shirts, not knitted or crocheted, of cotton, nesoi.
Ties, bow ties and cravats, not knitted or crocheted, of silk or silk waste.
Footwear w/outer soles and uppers of leather, not covering the ankle, welt, nesoi.
Footwear w/outer soles and uppers of leather, not cov. ankle, n/welt, for persons other than men, youths and boys.
Footwear w/outer soles of rubber/plastics/composition leather & uppers of leather, covering the ankle, welt.
Footwear w/outer soles of rubber/plastics/comp. leather & uppers of leather, n/cov. ankle, n/welt, for men, youths and
boys, nesoi.
Footwear w/outer soles of leather/comp. leath., n/o 50% by wt. rub./plast. or rub./plast./text. & 10%+ by wt. rub./plast., val.
o/$2.50/pr.
Refractory ceramic goods (o/than of siliceous fossil meals or earths), nesoi.
Glazed ceramic tiles nesoi, of a H2O absorp coeff by wt >10%.
Glazed ceramic mosaic cubes nesoi, o/t subheading 6907.40.
Ceramic wares for laboratory, chemical or other technical uses (o/than of porcelain or china), nesoi.
Ceramic (o/than porcelain or china) sinks, washbasins, baths, bidets, water closet bowls, urinals & siml. sanitary fixtures.
Silver articles of jewelry and parts thereof, nesoi, valued over $18 per dozen pieces or parts.
Gold necklaces and neck chains (o/than of rope or mixed links).
Precious metal (o/than silver) articles of jewelry and parts thereo, whether or not plated or clad with precious metal, nesoi.
Precious stone articles, nesoi.
Imitation jewelry (o/than toy jewelry & rope, curb, cable, chain, etc.), of base metal (wheth. or n/plated w/prec. metal),
nesoi.
Air conditioning machines incorporating a refrigerating unit, nesoi.
Freezers of the upright type, not exceeding 900 liters capacity, electric or other.
Refrigerating or freezing display counters, cabinets, showcases and similar refrigerating or freezing furniture.
Refrigerating or freezing equipment nesoi.
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Federal Register / Vol. 86, No. 60 / Wednesday, March 31, 2021 / Notices
HTSUS subheading
8479.50.00
8532.24.00
9001.10.00
9401.71.00
9403.10.00
9403.20.00
9403.40.90
9403.60.80
9403.89.60
9503.00.00
9504.50.00
9504.90.40
9504.90.60
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
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9504.90.90 .............
9508.10.00 .............
9508.90.00 .............
9603.29.80 .............
Product description
Industrial robots, not elsewhere specified or included.
Ceramic dielectric fixed capacitors, multilayer.
Optical fibers, optical fiber bundles and cables, other than those of heading 8544.
Seats nesoi, w/metal frame (o/than of heading 9402), upholstered.
Furniture (o/than seats) of metal nesoi, of a kind used in offices.
Furniture (o/than seats) of metal nesoi, o/than of a kind used in offices.
Furniture (o/than seats) of wood (o/than bentwood) nesoi, of a kind used in the kitchen & not design. for motor vehicl. use.
Furniture (o/than seats & o/than of 9402) of wooden (o/than bentwood) nesoi.
Furniture (o/than seats & o/than of 9402) of materials nesoi.
Toys, including riding toys o/than bicycles, puzzles, reduced scale models.
Video game consoles and machines, other than those of heading 9504.30.
Game machines (o/than coin- or token-operated) and parts and accessories thereof.
Chess, checkers, backgammon, darts and o/table and parlor games played on boards of a special design and parts thereof; poker chips and dice.
Articles nesoi for arcade, table or parlor games & parts & access.; automatic bowling alley equipment & parts and accessories thereof.
Traveling circuses and traveling menageries; parts and accessories thereof.
Merry-go-rounds, boat-swings, shooting galleries and other fairground amusements; traveling theaters; parts and accessories thereof.
Shaving brushes, hair brushes, nail brushes, eyelash and other toilet brushes (o/than tooth brushes), valued o/40 cents
each.
BILLING CODE 3290–F1–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No. FAA–2021–0180]
Agency Information Collection
Activities: Requests for Comments;
Clearance of Renewed Approval of
Information Collection: Report of
Inspections Required by Airworthiness
Directive, Part 39
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice and request for
comments.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, FAA
invites public comments about our
intention to request the Office of
Management and Budget (OMB)
approval to renew an information
collection. The collection involves the
member of the public that may submit
an Alternative Methods of Compliance
(AMOC) request to the FAA by using the
Airworthiness Directives Development
(ADD) External website. The
information to be collected will be used
to support publicly disseminated
information to the FAA and/or is
necessary because this information
supports the Department of
Transpiration’s strategic goal to promote
the public health and safety by working
toward eliminating transportationrelated deaths and injuries.
DATES: Written comments should be
submitted by June 1, 2021.
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SUMMARY:
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18:54 Mar 30, 2021
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Please send written
comments:
By Electronic Docket:
www.regulations.gov (Enter docket
number into search field)
By mail: Robert Romero, 10101
Hillwood Parkway, 5N154, Fort
Worth, TX 76177
By fax: 817–222–5959
FOR FURTHER INFORMATION CONTACT:
Robert Romero by email at:
Robert.A.Romero@faa.gov; phone: 817–
222–5102
SUPPLEMENTARY INFORMATION:
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including (a)
Whether the proposed collection of
information is necessary for FAA’s
performance; (b) the accuracy of the
estimated burden; (c) ways for FAA to
enhance the quality, utility and clarity
of the information collection; and (d)
ways that the burden could be
minimized without reducing the quality
of the collected information. The agency
will summarize and/or include your
comments in the request for OMB’s
clearance of this information collection.
OMB Control Number: 2120–0056.
Title: Report of Inspections Required
by Airworthiness Directives, Part 39.
Form Numbers: There is no standard
form to use for AMOC submission.
However, the public may access the
ADD External website to submit an
AMOC request to the FAA.
Type of Review: Renewal of an
information collection.
Background: Alternative Methods of
Compliance (AMOC) are submitted to
the FAA by the general public. While
anyone may submit an AMOC there is
no standard form to use. From Order
ADDRESSES:
[FR Doc. 2021–06628 Filed 3–30–21; 8:45 am]
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8110.103B Alternative Methods of
Compliance (AMOC), Section 32:
3–2. AMOC Proposal. 14 CFR 39.19 states
in part that ‘‘anyone may propose to FAA an
alternative method of compliance or a change
in the compliance time, if the proposal
provides an acceptable level of safety.’’
a. Although a letter is preferred, AMOC
proposals may be submitted by other means,
such as email, fax, or telephone. AMOC
proposals received by telephone must be
documented.
An AMOC Response Letter is written
by an internal FAA user and sent to the
AMOC Requester. The template may be
generated from the ADD Dashboard and
follows the latest Order. There is not an
FAA or OMB number on this template.
A member of the public may submit
an AMOC request to the FAA by using
the ADD External website. Registration
is not needed to use this website.
External users must consent to the
‘‘Terms of Use’’ statement before
proceeding to the AMOC proposal web
page. An AMOC is required if an owner/
operator of aircraft cannot comply with
an AD or finds a different method to
comply with the actions specified in an
AD, as mandated by 14 CFR part 39.
Respondents: The respondents are a
member of the public who may submit
an AMOC request to FAA by using the
ADD External website. We estimate that
25 ADs yearly will require reports of
information and findings. The average
AD affects about 1,120 owners/
operators. Therefore, 25 ADs times
1,120 owners/operators per year equal
28,000 reports.
Frequency: As needed.
Estimated Average Burden per
Response: These reports, requiring an
average of 1 hour each to prepare,
consume 28,000 reporting hours.
E:\FR\FM\31MRN1.SGM
31MRN1
Agencies
[Federal Register Volume 86, Number 60 (Wednesday, March 31, 2021)]
[Notices]
[Pages 16829-16832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06628]
-----------------------------------------------------------------------
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Number USTR-2021-0007]
Proposed Action in Section 301 Investigation of the United
Kingdom's Digital Services Tax
AGENCY: Office of the United States Trade Representative.
ACTION: Request for comments and notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: The Office of the United States Trade Representative (USTR)
requests written comments regarding a potential trade action in
connection with the Section 301 investigation of the United Kingdom's
Digital Services Tax (DST). USTR also will convene virtual public
hearings and accept rebuttal comments in relation to the potential
action.
DATES:
April 21, 2021: To be assured of consideration, submit requests to
appear at a hearing, along with a summary of the testimony, by this
date.
April 30, 2021: To be assured of consideration, submit written
comments by this date.
May 3, 2021: Multi-jurisdictional virtual hearing on proposed
actions.
May 4, 2021 at 9:30 a.m.: Virtual hearing on the United Kingdom DST
proposed action.
May 10, 2021: To be assured of consideration, submit multi-
jurisdictional hearing rebuttal comments by this date.
May 11, 2021: To be assured of consideration, submit the United
Kingdom DST hearing rebuttal comments by this date.
ADDRESSES: Submit documents in response to this notice, including
written comments and hearing appearance requests, through the online
USTR portal: https://comments.ustr.gov/s/.
FOR FURTHER INFORMATION CONTACT: For questions concerning the
investigation, please contact Ben Allen or Patrick Childress, Assistant
General Counsels at (202) 395-9439 and (202) 395-9531, respectively;
Robert Tanner, Director, Services and Investment at (202) 395-6125; or
Michael Rogers, Director, Europe and the Middle East at (202) 395-2684.
For issues with on-line submissions, please contact the USTR Section
301 line at (202) 395-5725.
SUPPLEMENTARY INFORMATION:
I. Proceedings in the Investigation
The United Kingdom's has adopted a DST that applies a two percent
tax on the revenues of certain search engines, social media platforms
and online marketplaces. The United Kingdom's DST applies only to
companies with digital services revenues exceeding [pound]500 million
and United Kingdom digital services revenues exceeding [pound]25
million.
On June 2, 2020, the U.S. Trade Representative initiated an
investigation of the United Kingdom's DST pursuant to section
302(b)(1)(A) of the Trade Act of 1974, as amended (Trade Act). See 85
FR 34709 (June 5, 2020) (notice of initiation). The notice of
initiation solicited written comments on, inter alia, the following
aspects of the United Kingdom's DST: Discrimination against U.S.
companies; retroactivity; and possibly unreasonable tax policy. With
respect to tax policy, USTR solicited comments on, inter alia, whether
the DST diverged from principles reflected in the U.S. and
international tax systems including extraterritoriality; taxing revenue
not income; and a purpose of penalizing particular technology companies
for their commercial success. Interested persons filed over 380 written
submissions in response. The public submissions are available on
www.regulations.gov in docket number USTR-2020-0022.
Under section 303 of the Trade Act, the U.S. Trade Representative
requested consultations with the government of the United Kingdom
regarding the issues involved in the investigation. Consultations were
held on December 4, 2020.
Based on information obtained during the investigation, USTR
prepared a comprehensive report on the United Kingdom's DST (United
Kingdom DST Report). The United Kingdom DST Report is posted on the
USTR website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-digital-services-taxes. The report includes
a full description of the United Kingdom's DST, and supports findings
that the United Kingdom's DST is unreasonable and discriminatory and
burdens or restricts U.S commerce.
On January 14, 2021, based on the information obtained during the
investigation and the advice of the Section 301 Committee, the U.S.
Trade Representative determined that the United Kingdom's DST is
unreasonable or discriminatory and burdens or restricts U.S. commerce,
and therefore is actionable under sections 301(b) and 304(a) of the
Trade Act (19 U.S.C. 2411(b) and 2414(a)). See 86 FR 6406 (January 21,
2021).
II. Proposed Action
Section 301(b) provides that upon determining that the acts,
policies, and practices under investigation are actionable and that
action is appropriate, the U.S. Trade Representative shall take all
appropriate and feasible action authorized under section 301(c),
subject to the specific direction, if any, of the President regarding
such action, and all other appropriate and feasible action within the
power of the President that the President may direct the U.S. Trade
Representative to take under section 301(b), to obtain the elimination
of that act, policy, or practice.
Section 301(c)(1)(B) of the Trade Act authorizes the U.S. Trade
Representative to impose duties on the goods of the foreign country
subject to the investigation. Pursuant to sections 301(b) and (c), USTR
proposes that the U.S. Trade Representative should determine that
action is appropriate and that appropriate action would include the
imposition of additional ad valorem tariffs on certain products of the
United Kingdom.
In particular, USTR proposes to impose additional tariffs of up to
25 percent ad valorem on an aggregate level of trade that would collect
duties on goods of the United Kingdom in the range of the amount of the
DST that the
[[Page 16830]]
United Kingdom is expected to collect from U.S. companies. Initial
estimates indicate that the value of the DST payable by U.S.-based
company groups to the United Kingdom will be up to approximately $325
million per year.
USTR further proposes that the goods of the United Kingdom subject
to additional tariffs would be drawn from the preliminary list of
products in the Annex to this notice, as specified by the listed eight-
digit tariff subheadings.
III. Request for Public Comments
In accordance with section 304(b) of the Trade Act (19 U.S.C.
2414(b)), USTR invites comments from interested persons with respect to
whether action is appropriate, and if so, the appropriate action to be
taken.
USTR requests comments with respect to any issue related to the
action to be taken in this investigation. With respect to the proposed
tariff action outline above, USTR specifically invites comments
regarding:
The level of the burden or restriction on U.S. commerce
resulting from the United Kingdom's DST, including the amount of DST
payments owed by U.S. companies, the annual growth rate of such
payments, and other effects, such as compliance costs.
The appropriate aggregate level of trade to be covered by
additional duties.
The level of the increase, if any, in the rate of duty.
The specific products to be subject to increased duties,
including whether the tariff subheadings listed in the Annex should be
retained or removed, or whether tariff subheadings not currently on the
list should be added.
In commenting on the inclusion or removal of particular products on
the preliminary list of products subject to the proposed additional
duties, USTR requests that commenters specifically address whether
imposing increased duties on a particular product would be practicable
or effective to obtain the elimination of the United Kingdom's acts,
policies, and practices, and whether imposing additional duties on a
particular product would cause disproportionate economic harm to U.S.
interests, including small- or medium-size businesses and consumers.
Simultaneously with this notice, USTR also is requesting public
comments on proposed trade actions in five other DST investigations
initiated at the same time as the United Kingdom DST investigation.
Certain interested persons may wish to provide written comments or oral
testimony on multi-jurisdictional issues common to two or more
investigations. To avoid duplication, the USTR portal will have a
separate docket for multi-jurisdictional submissions, and USTR will
hold a separate multi-jurisdictional hearing.
To be assured of consideration, you must submit written comments on
the proposed action by April 30, 2021, and post-hearing rebuttal
comments by May 10, 2021 for the multi-jurisdictional hearing, and by
May 11, 2021 for the United Kingdom DST hearing.
IV. Hearing Participation
The Section 301 Committee will convene a virtual public hearing for
comments pertaining to the United Kingdom DST proposed action on May 4,
2021, beginning at 9:30 a.m. Those requesting to appear at this hearing
should have comments applicable only to the United Kingdom DST proposed
action.
The Section 301 Committee will convene a virtual public hearing for
comments pertaining to multiple jurisdictions on May 3, 2021, beginning
at 9:30 a.m. Those requesting to appear at the multi-jurisdictional
hearing should have comments that are applicable to two or more DST
investigations.
For either hearing, you must submit a request to appear at the
specific hearing using the electronic portal at https://comments.ustr.gov/s/. You will be able to view a docket entitled
`Request to Appear at Hearing on Proposed Action in Section 301
Investigation of the United Kingdom's Digital Services Tax.' Requests
to appear must include a summary of testimony, and may be accompanied
by a pre-hearing submission. Remarks at the hearing are limited to five
minutes to allow for possible questions from the Section 301 Committee.
All submissions must be in English. To be assured of consideration,
USTR must receive your request to appear by April 21, 2021.
V. Procedures for Written Submissions
You must submit written comments, rebuttal comments, and requests
to appear at the hearing using the electronic portal at https://comments.ustr.gov/s. You will be able to view a docket entitled
`Comments Concerning Proposed Action in Section 301 Investigation of
the United Kingdom's Digital Services Tax' on the portal, docket number
USTR-2021-0007.
You do not need to establish an account to submit comments. Fields
with a gray (BCI) notation are for Business Confidential Information
and the information entered will not be publicly available. Required
fields are marked `Required' and will have a red asterisk (*). Fields
with a green (Public) notation will be viewable by the public.
The first screen of the portal requires you to enter identification
and contact information. Third party organizations such as law firms,
trade associations, or customs brokers, should identify the full legal
name of the organization they represent, and identify the primary point
of contact for the submission. The remaining fields of the form are
optional.
After entering the identification and contact information, you can
complete the remainder of the questionnaire, or any portion of it by
clicking `Next.' You can comment on multiple products in a single
entry, or submit multiple comments. You will be able to navigate
through each screen of the form by clicking `Next,' with or without
entering a response to each field on an individual screen or page.
Additionally, you will be able to upload documents at the end of the
form and designate whether USTR should treat the documents as business
confidential or public information.
For uploads containing BCI, the file name of the business
confidential version should begin with the characters `BCI'. Any page
containing BCI must be clearly marked `BUSINESS CONFIDENTIAL' on the
top of that page and the submission should clearly indicate, via
brackets, highlighting, or other means, the specific information that
is BCI. If you request business confidential treatment, you must
certify in writing that disclosure of the information would endanger
trade secrets or profitability, and that the information would not
customarily be released to the public. Parties uploading attachments
containing BCI also must submit a public version of their comments. The
file name of the public version, which must be uploaded on https://comments.ustr.gov/s/, should begin with the character `P'. The `BCI'
and `P' should be followed by the name of the person or entity
submitting the comments or rebuttal comments. If these procedures are
not sufficient to protect BCI or otherwise protect business interests,
please contact the USTR Section Hotline 301 line at (202) 395-5725 to
discuss whether alternative arrangements are possible. USTR will post
attachments uploaded to the docket for public inspection, except for
attachments marked as business confidential.
[[Page 16831]]
You can view all public submissions on the USTR portal at https://comments.ustr.gov/s.
Greta Peisch,
General Counsel, Office of the United States Trade Representative.
Annex
Note: All products that are classified in the eight-digit
subheadings of the Harmonized Tariff Schedule of the United States
(HTSUS) that are listed in this Annex are covered by the proposed
action. The product descriptions that are contained in this Annex
are provided for informational purposes only, and are not intended
to delimit in any way the scope of the proposed action. Any
questions regarding the scope of a particular HTSUS subheading
should be referred to U.S. Customs and Border Protection. In the
product descriptions, the abbreviation ``nesoi'' means ``not
elsewhere specified or included''.
------------------------------------------------------------------------
HTSUS subheading Product description
------------------------------------------------------------------------
3213.90.00................. Artists', students' or signboard painters'
colors, in tablets, tubes, jars, bottles,
pans or in similar packings, not in sets.
3303.00.10................. Floral or flower waters, not containing
alcohol.
3303.00.20................. Perfumes and toilet waters, other than
floral or flower waters, not containing
alcohol.
3303.00.30................. Perfumes and toilet waters, containing
alcohol.
3304.10.00................. Lip make-up preparations.
3304.20.00................. Eye make-up preparations.
3304.30.00................. Manicure or pedicure preparations.
3304.91.00................. Beauty or make-up powders, whether or not
compressed.
3304.99.10................. Petroleum jelly put up for retail sale.
3304.99.50................. Beauty or make-up preparations &
preparations for the care of the skin,
excl. medicaments but incl. sunscreen or
sun tan preparations, nesoi.
3305.10.00................. Shampoos.
3305.20.00................. Preparations for permanent waving or
straightening the hair.
3305.30.00................. Hair lacquers.
3305.90.00................. Preparations for use on the hair, nesoi.
3306.90.00................. Preparations for oral or dental hygiene,
including denture fixative pastes and
powders, excluding dentifrices.
3307.10.10................. Pre-shave, shaving or after-shave
preparations, not containing alcohol.
3307.10.20................. Pre-shave, shaving or after-shave
preparations, containing alcohol.
3307.30.10................. Bath salts, whether or not perfumed.
3307.30.50................. Bath preparations, other than bath salts.
3307.49.00................. Preparations for perfuming or deodorizing
rooms, including odoriferous preparations
used during religious rites, nesoi.
3307.90.00................. Depilatories and other perfumery, cosmetic
or toilet preparations. nesoi.
4201.00.60................. Saddlery and harnesses for animals nesoi,
(incl. traces, leads, knee pads, muzzles,
saddle cloths and bags and the like), of
any material.
6104.43.20................. Women's or girls' dresses, knitted or
crocheted, of synthetic fibers, nesoi.
6201.12.20................. Men's or boys' overcoats, carcoats, capes,
& similar coats of cotton, not knit or
crocheted, not containing 15% or more by
wt of down, etc.
6201.92.45................. Men's or boys' anoraks, windbreakers & sim
articles nesoi, not knit/crochet, cotton,
not cont. 15% or more by wt of down, etc,
o/than rec perf outwear.
6202.12.20................. Women's or girls' overcoats, carcoats, etc,
not knitted or crocheted, of cotton, not
containing 15% or more by weight of down,
etc.
6202.13.40................. Women's or girls' overcoats, carcoats,
capes, cloaks and similar articles, not
knitted or crocheted, of man-made fibers,
nesoi.
6202.92.90................. Women's/girls' anoraks, windbreakers &
similar articles, nt knit/crochet, cotton,
nt cont. 15% or more by wt of down, etc, o/
than rec perf outwear.
6204.43.40................. Women's or girls' dresses, not knitted or
crocheted, of synthetic fibers, nesoi.
6204.44.40................. Women's or girls' dresses, not knitted or
crocheted, of artificial fibers, nesoi.
6204.49.10................. Women's or girls' dresses, not knitted or
crocheted, containing 70% or more by
weight of silk or silk waste.
6205.20.20................. Men's or boys' shirts, not knitted or
crocheted, of cotton, nesoi.
6215.10.00................. Ties, bow ties and cravats, not knitted or
crocheted, of silk or silk waste.
6403.59.30................. Footwear w/outer soles and uppers of
leather, not covering the ankle, welt,
nesoi.
6403.59.90................. Footwear w/outer soles and uppers of
leather, not cov. ankle, n/welt, for
persons other than men, youths and boys.
6403.91.30................. Footwear w/outer soles of rubber/plastics/
composition leather & uppers of leather,
covering the ankle, welt.
6403.99.60................. Footwear w/outer soles of rubber/plastics/
comp. leather & uppers of leather, n/cov.
ankle, n/welt, for men, youths and boys,
nesoi.
6404.20.40................. Footwear w/outer soles of leather/comp.
leath., n/o 50% by wt. rub./plast. or rub./
plast./text. & 10%+ by wt. rub./plast.,
val. o/$2.50/pr.
6903.90.00................. Refractory ceramic goods (o/than of
siliceous fossil meals or earths), nesoi.
6907.23.90................. Glazed ceramic tiles nesoi, of a H2O absorp
coeff by wt >10%.
6907.30.90................. Glazed ceramic mosaic cubes nesoi, o/t
subheading 6907.40.
6909.19.50................. Ceramic wares for laboratory, chemical or
other technical uses (o/than of porcelain
or china), nesoi.
6910.90.00................. Ceramic (o/than porcelain or china) sinks,
washbasins, baths, bidets, water closet
bowls, urinals & siml. sanitary fixtures.
7113.11.50................. Silver articles of jewelry and parts
thereof, nesoi, valued over $18 per dozen
pieces or parts.
7113.19.29................. Gold necklaces and neck chains (o/than of
rope or mixed links).
7113.19.50................. Precious metal (o/than silver) articles of
jewelry and parts thereo, whether or not
plated or clad with precious metal, nesoi.
7116.20.50................. Precious stone articles, nesoi.
7117.19.90................. Imitation jewelry (o/than toy jewelry &
rope, curb, cable, chain, etc.), of base
metal (wheth. or n/plated w/prec. metal),
nesoi.
8415.82.01................. Air conditioning machines incorporating a
refrigerating unit, nesoi.
8418.40.00................. Freezers of the upright type, not exceeding
900 liters capacity, electric or other.
8418.50.00................. Refrigerating or freezing display counters,
cabinets, showcases and similar
refrigerating or freezing furniture.
8418.69.01................. Refrigerating or freezing equipment nesoi.
[[Page 16832]]
8479.50.00................. Industrial robots, not elsewhere specified
or included.
8532.24.00................. Ceramic dielectric fixed capacitors,
multilayer.
9001.10.00................. Optical fibers, optical fiber bundles and
cables, other than those of heading 8544.
9401.71.00................. Seats nesoi, w/metal frame (o/than of
heading 9402), upholstered.
9403.10.00................. Furniture (o/than seats) of metal nesoi, of
a kind used in offices.
9403.20.00................. Furniture (o/than seats) of metal nesoi, o/
than of a kind used in offices.
9403.40.90................. Furniture (o/than seats) of wood (o/than
bentwood) nesoi, of a kind used in the
kitchen & not design. for motor vehicl.
use.
9403.60.80................. Furniture (o/than seats & o/than of 9402)
of wooden (o/than bentwood) nesoi.
9403.89.60................. Furniture (o/than seats & o/than of 9402)
of materials nesoi.
9503.00.00................. Toys, including riding toys o/than
bicycles, puzzles, reduced scale models.
9504.50.00................. Video game consoles and machines, other
than those of heading 9504.30.
9504.90.40................. Game machines (o/than coin- or token-
operated) and parts and accessories
thereof.
9504.90.60................. Chess, checkers, backgammon, darts and o/
table and parlor games played on boards of
a special design and parts thereof; poker
chips and dice.
9504.90.90................. Articles nesoi for arcade, table or parlor
games & parts & access.; automatic bowling
alley equipment & parts and accessories
thereof.
9508.10.00................. Traveling circuses and traveling
menageries; parts and accessories thereof.
9508.90.00................. Merry-go-rounds, boat-swings, shooting
galleries and other fairground amusements;
traveling theaters; parts and accessories
thereof.
9603.29.80................. Shaving brushes, hair brushes, nail
brushes, eyelash and other toilet brushes
(o/than tooth brushes), valued o/40 cents
each.
------------------------------------------------------------------------
[FR Doc. 2021-06628 Filed 3-30-21; 8:45 am]
BILLING CODE 3290-F1-P