Notice of Action in the Section 301 Investigation of Austria's Digital Services Tax, 30361-30364 [2021-11856]

Download as PDF Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices Annex B Note: 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 action. In all cases, the formal language in Annex A governs the tariff treatment of products covered by the action. Any questions regarding the scope of particular HTSUS HTSUS subheading 0306.16.00 0306.17.00 0307.52.00 1605.21.05 1605.21.10 1605.55.05 4202.21.90 ................. ................. ................. ................. ................. ................. ................. 4202.22.15 ................. 4203.30.00 ................. 6402.99.31 ................. 6403.51.30 ................. 6403.51.60 ................. 6403.51.90 ................. 6403.59.30 6403.59.60 6403.59.90 6403.99.90 ................. ................. ................. ................. 6404.19.39 ................. 6404.20.40 ................. 6404.20.60 ................. 6405.90.90 ................. 6504.00.60 ................. 6505.00.08 6505.00.15 6505.00.30 7013.99.80 ................. ................. ................. ................. 7013.99.90 ................. Cold-water shrimps and prawns, cooked in shell or uncooked, dried, salted or in brine, frozen. Other shrimps and prawns, cooked in shell or uncooked, dried, salted or in brine, frozen. Octopus, frozen. Shrimp & prawns not in airtight containers: Fish meat and prepared meals. Shrimp & prawns not in airtight containers: Other than fish meat and prepared meals. Octopus, as containing fish meat or prepared meals. Handbags, with or without shoulder strap or without handle, with outer surface of leather, composition or patent leather, nesoi, over $20 ea. Handbags, with or without shoulder straps or without handle, with outer surface of sheeting of plastics. Belts and bandoliers with or without buckles, of leather or of composition leather. Footwear w/outer soles & uppers of rubber or plastics, nesoi, n/cov. ankle, w/ext. surf. of uppers o/90% rubber or plastics, nesoi. Footwear w/outer soles and uppers of leather, nesoi, covering the ankle, welt. Footwear w/outer soles and uppers of leather, nesoi, covering the ankle, n/welt, for men, youths and boys. Footwear w/outer soles and uppers of leather, nesoi, covering the ankle, n/welt, for persons other than men, youths and boys. 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 men, youths and boys. 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/comp. leather & uppers of leather, n/cov. ankle, for persons other than men, youths and boys, val. over $2.50/pair. Footwear w/outr sole rub/plast & upp. textile, nesoi, w/open toes/heels or slip-on, >10% by wt. rub./plast not subj note 5 ch 64. 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. Footwear w/outer soles of leather/comp. leather & uppers of textile, nesoi. Footwear, nesoi, w/outer soles and uppers o/than leather/comp. leather/text. not disposable. Hats and headgear, plaited or assembled from strips of veg. fibers or unspun fibrous veg. materials and/or paper yarn, not sewed. Hats and headgear made up from felt made from hat forms or hat bodies of 6501, except of fur felt. Hats and headgear, of cotton and/or flax, knitted. Hats and headgear, of wool, knitted or crocheted or made up from knitted or crocheted fabric. Glassware for toilet/office/indoor decor. or similar purposes, nesoi, n/cut or engraved, valued over $3 but n/over $5 each. Glassware for toilet/office/indoor decor. or similar purposes, nesoi, n/cut or engraved, valued over $5 each. BILLING CODE 3290–F1–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket Number USTR–2021–0002] Notice of Action in the Section 301 Investigation of Austria’s Digital Services Tax Office of the United States Trade Representative (USTR). ACTION: Notice. AGENCY: On January 14, 2021, the U.S. Trade Representative announced a determination that Austria’s Digital Services Tax (DST) is unreasonable or discriminatory and burdens or restricts U.S. commerce. This notice announces the U.S. Trade Representative’s determination to take action in the form of additional duties of 25 percent on the products of Austria specified in Annex SUMMARY: khammond on DSKJM1Z7X2PROD with NOTICES subheadings should be referred to U.S. Customs and Border Protection. In the product descriptions, the abbreviation ‘‘nesoi’’ means ‘‘not elsewhere specified or included’’. Product description [FR Doc. 2021–11863 Filed 6–4–21; 8:45 am] VerDate Sep<11>2014 30361 17:36 Jun 04, 2021 Jkt 253001 A to this notice. The U.S. Trade Representative has further determined to suspend application of the additional duties for a period of up to 180 days. DATES: June 2, 2021: The U.S. Trade Representative determined to take action in the form of additional duties of 25 percent on products of Austria specified in Annex A. November 29, 2021: The end of the 180-day suspension period for the additional duties. FOR FURTHER INFORMATION CONTACT: For questions concerning the investigation, please contact Benjamin Allen, Thomas Au, or Patrick Childress, Assistant General Counsels at: (202) 395–9439, (202) 395–0380, and (202) 385–9531, respectively; Robert Tanner, Director, Services and Investment at (202) 395– 6125; or Michael Rogers, Director for Europe and the Middle East at (202) 395–2684. For specific questions on customs classification or PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 implementation of additional duties on products, contact traderemedy@cbp.gov. SUPPLEMENTARY INFORMATION: I. Proceedings in the Investigation Austria has adopted a DST that imposes a 5 percent tax on gross revenues from digital advertising services provided in Austria. The DST applies only to companies with annual global revenues of Ö750 million or more, and annual revenues from digital advertising services in Austria of Ö25 million or more. On June 2, 2020, the U.S. Trade Representative initiated an investigation of Austria’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 Austria’s DST: Discrimination against U.S. companies; retroactivity; and possibly unreasonable tax policy. With respect to E:\FR\FM\07JNN1.SGM 07JNN1 khammond on DSKJM1Z7X2PROD with NOTICES 30362 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices 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 Austria regarding the issues involved in the investigation. Consultations were held on December 21, 2020. Based on information obtained during the investigation, USTR prepared a comprehensive report on Austria’s DST, which 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 Austria’s DST, and supports findings that Austria’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 Austria’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. See 86 FR 6406 (January 21, 2021). On March 31, 2021, USTR issued a notice proposing that appropriate action would include additional ad valorem duties of up to 25 percent on products of Austria to be drawn from a list of 40 tariff subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) included in the annex to that notice. The March 31, 2021 notice requested comments on the proposed action as well as on other potential actions in the investigation. Witnesses provided testimony at public hearings held on May 3 and May 6, 2021, and interested persons filed written comments. Transcripts from the hearings are available on the USTR website at: https://ustr.gov/issue-areas/ enforcement/section-301-investigations/ section-301-digital-services-taxes. The written public submissions are available at: https://comments.ustr.gov/s/ docket?docketNumber=USTR-20210002 and https://comments.ustr.gov/s/ docket?docketNumber=USTR-20210008. VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 II. Determination of Action To Be Taken in the Investigation In accordance with section 301(b) of the Trade Act, the U.S. Trade Representative has determined that action is appropriate in this investigation. 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) of the Trade Act, 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 304(a)(2)(B) provides that the U.S. Trade Representative shall make the determination of what action to take on or before the date that is 12 months after the date on which the investigation was initiated, or in this case, by June 2, 2021. Pursuant to sections 301(b) and (c) of the Trade Act, and in accordance with the advice of the Section 301 Committee, the U.S. Trade Representative has determined that appropriate action is the imposition of ad valorem duties of 25 percent on products of Austria specified in Annex A to this notice. Annex A contains a list of 23 tariff subheadings, with an estimated trade value for calendar year 2019 of approximately $65 million. In making this determination, the U.S. Trade Representative considered the public comments submitted in the investigation, as well as advice of advisory committees. In determining the level of trade covered by the additional duties, the U.S. Trade Representative considered the value of digital transactions covered by Austria’s DST and the amount of taxes assessed by Austria on U.S. companies. Estimates indicate that the value of the DST payable by U.S.-based company groups to Austria will be up to approximately $45 million per year. The level of trade covered by the action takes into account estimates of the amount of tariffs to be collected on goods of Austria and the estimates of the amount of taxes assessed by Austria. Section 305(a) of the Trade Act provides, in pertinent part, that the U.S. Trade Representative may delay implementation of the action to be taken for up to 180 days ‘‘if the Trade Representative determines . . . that a delay is necessary or desirable . . . to PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 obtain . . . [a] satisfactory solution with respect to the acts, policies, or practices that are the subject of the action.’’ Pursuant to section 305(a), the U.S. Trade Representative has determined to suspend the additional duties for up to 180 days (that is, up to November 29, 2021) to allow additional time for multilateral and bilateral discussions that could lead to a satisfactory resolution of this matter. In order to implement this determination, subchapter III of chapter 99 of the HTSUS is modified by Annex A of this notice. Annex A is effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on November 29, 2021, which is 180 days after the determination of action. In the event the U.S. Trade Representative determines that the suspension of the additional duties should be for less than a period of 180 days, USTR will issue a subsequent notice amending the effective date. For informational purposes, Annex B contains a list of the tariff subheadings covered by the tariff action along with short product descriptions. In all cases, the formal language in Annex A governs the tariff treatment of products covered by the action. As specified in Annex A, products provided for in new HTSUS heading 9903.90.02 will be subject to an additional ad valorem duty of 25 percent. The additional duties provided for in the new HTSUS heading established by Annex A apply in addition to all other applicable duties, fees, exactions, and charges. Any product listed in Annex A, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern standard time on November 29, 2021, only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading. The U.S. Trade Representative will continue to monitor the effect of the trade action, the progress of discussions in the Organisation for Economic Cooperation and Development and G20, the progress of discussions with Austria, and may adopt appropriate modifications. If a modification to the action may be appropriate, the U.S. Trade Representative will consider the E:\FR\FM\07JNN1.SGM 07JNN1 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices comments received in response to the March 31, 2021 notice. Greta Peisch, General Counsel, Office of the United States Trade Representative. Annex A Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on November 29, 2021, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified: 1. By inserting the following new U.S. notes 23(a) and 23(b) to subchapter III of chapter 99 in numerical sequence: ‘‘23 (a) For the purposes of heading 9903.90.02, products of Austria, as specified in this note, shall be subject to additional duties as provided herein. All products of Austria that are classified in the subheadings enumerated in this note are subject to the additional duties imposed by heading 9903.90.02. The duties imposed by heading 9903.90.02 shall be in addition to the general duty rates provided for in the applicable provisions of the tariff schedule. Products of Austria that are classified in the subheadings enumerated in this note and that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99 shall be subject to the additional duties imposed by heading 9903.90.02, and any such duty exemption or reduction shall apply only to the permanent general rate prescribed in provisions of chapters 1 through 97 of the tariff schedule. The additional duties imposed by heading 9903.90.02 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50 and 9802.00.60 and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duties apply to the value of repairs, alterations or processing performed in Austria and as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. Products of Austria that are provided for in heading 9903.90.02 and classified in one of the subheadings enumerated in note 23(b) to this subchapter shall continue to be subject to antidumping, countervailing or other duties (including duties imposed by other provisions of subchapter III of this chapter and safeguard duties set forth in provisions of subchapter IV of this chapter), fees, exactions and charges 30363 that apply to such products, as well as to the additional duties imposed herein. (b) Heading 9903.90.02 shall apply to all products of Austria that are classified in the subheadings enumerated below: 6903.20.00 7013.22.50 7013.28.20 7013.28.50 7013.28.60 7013.37.20 7013.37.60 7013.41.50 7013.49.60 7013.91.50 7019.90.10 7019.90.50 7403.29.01 8418.10.00 9003.11.00 9005.10.00 9005.80.40 9005.80.60 9010.60.00 9012.10.00 9015.40.80 9015.80.20 9027.50.80’’. 2. by inserting the following new heading 9903.90.02 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled ‘‘Heading/Subheading’’, ‘‘Article Description’’, and ‘‘Rates of Duty 1-General’’, respectively: Rates of duty Heading/subheading Article description 1 2 General ‘‘9903.90.02 ................... ‘‘Articles the product of Austria, as provided for in U.S. note 23(a) to this subchapter and as provided for in the subheadings enumerated in U.S. note 23(b) to this subchapter. Annex B Note: The product descriptions that are contained in this Annex are provided for informational purposes only, and are not intended to delimit in The duty provided in the applicable subheading + 25%’’. any way the scope of the action. In all cases, the formal language in Annex A governs the tariff treatment of products covered by the action. Any questions regarding the scope of particular HTSUS subheadings 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 6903.20.00 ................. Refractory ceramic goods (o/than of siliceous fossil meals or earths), nesoi, cont. by wt. o/50% alumina or mix. or comp. of Al2O3 & SiO2. Stemware drinking glasses of lead crystal, valued over $5 each. Stemware, o/than of pressed and toughened glass, o/than lead crystal, valued o/$0.30 but n/over $3 each. Stemware, o/than of pressed and toughened glass, o/than lead crystal, not cut or engraved, valued o/$3 but n/over $5 each. Stemware, o/than of pressed and toughened glass, o/than lead crystal, not cut or engraved, valued over $5 each. Drinking glasses, nesoi, o/than of pressed and toughened glass, o/than lead crystal, valued o/$0.30 but n/over $3 each. Drinking glasses, nesoi, o/than of pressed and toughened glass, o/than lead crystal, not cut or engraved, valued over $5 each. Glassware for table or kitchen purposes (o/than drinking glasses), of lead crystal, valued over $5 each. Glassware for table or kitchen purposes (o/than drinking glasses), nesoi, n/cut or engraved, valued over $5 each. Glassware for toilet/office/indoor decor. & similar purposes, of lead crystal, valued over $5 each. Woven glass fiber articles (other than fabrics), nesoi. 7013.22.50 ................. 7013.28.20 ................. 7013.28.50 ................. khammond on DSKJM1Z7X2PROD with NOTICES Special 7013.28.60 ................. 7013.37.20 ................. 7013.37.60 ................. 7013.41.50 7013.49.60 7013.91.50 7019.90.10 ................. ................. ................. ................. VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\07JNN1.SGM 07JNN1 30364 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices HTSUS subheading 7019.90.50 7403.29.01 8418.10.00 9003.11.00 9005.10.00 9005.80.40 9005.80.60 ................. ................. ................. ................. ................. ................. ................. 9010.60.00 9012.10.00 9015.40.80 9015.80.20 ................. ................. ................. ................. 9027.50.80 ................. Product description Glass fibers (including glass wool), nesoi, and articles thereof, nesoi. Copper alloys (o/than copper-zinc, copper-tin alloys), unwrought nesoi. Combined refrigerator-freezers, fitted with separate external doors, electric or other. Frames and mountings, of plastics, for spectacles, goggles or the like. Binoculars. Optical telescopes, including monoculars. Monoculars and astronomical instruments other than binoculars and optical telescopes but not including instruments for radio-astronomy. Projection screens. Microscopes other than optical microscopes; diffraction apparatus. Photogrammetrical surveying instruments and appliances, other than electrical. Optical surveying, hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, nesoi. Nonelectrical instruments and apparatus using optical radiations (ultraviolet, visible, infrared), nesoi. implementation of additional duties on products, contact traderemedy@cbp.gov. SUPPLEMENTARY INFORMATION: [FR Doc. 2021–11856 Filed 6–4–21; 8:45 am] BILLING CODE 3290–F1–P I. Proceedings in the Investigation OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket Number USTR–2021–0007] Notice of Action in the Section 301 Investigation of the United Kingdom’s Digital Services Tax Office of the United States Trade Representative (USTR). ACTION: Notice. AGENCY: On January 14, 2021, the U.S. Trade Representative announced a determination that the United Kingdom’s Digital Services Tax (DST) is unreasonable or discriminatory and burdens or restricts U.S. commerce. This notice announces the U.S. Trade Representative’s determination to take action in the form of additional duties of 25 percent on the products of the United Kingdom specified in Annex A to this notice. The U.S. Trade Representative has further determined to suspend application of the additional duties for a period of up to 180 days. DATES: June 2, 2021: The U.S. Trade Representative determined to take action in the form of additional duties of 25 percent on products of the United Kingdom specified in Annex A. November 29, 2021: The end of the 180-day suspension period for the additional duties. FOR FURTHER INFORMATION CONTACT: For questions concerning the investigation, please contact Benjamin Allen, Thomas Au, or Patrick Childress, Assistant General Counsels at: (202) 395–9439, (202) 395–0380, and (202) 385–9531, respectively; Robert Tanner, Director, Services and Investment at (202) 395– 6125; or Michael Rogers, Director for Europe and the Middle East at (202) 395–2684. For specific questions on customs classification or khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 The United Kingdom 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. 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, which is posted on the USTR website at https://ustr.gov/issueareas/enforcement/section-301- PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 investigations/section-301digitalservices-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. See 86 FR 6406 (January 21, 2021). On March 31, 2021, USTR issued a notice proposing that appropriate action would include additional ad valorem duties of up to 25 percent on products of the United Kingdom to be drawn from a list of 69 tariff subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) included in the annex to that notice. The March 31, 2021 notice requested comments on the proposed action as well as on other potential actions in the investigation. Witnesses provided testimony at public hearings on May 3 and May 6, 2021, and interested persons filed written comments. Transcripts from the hearings are available on the USTR website at: https://ustr.gov/issue-areas/ enforcement/section-301-investigations/ section-301-digital-services-taxes. The written public submissions are available at: https://comments.ustr.gov/s/ docket?docketNumber=USTR-20210007 and https://comments.ustr.gov/s/ docket?docketNumber=USTR-20210008. II. Determination of Action To Be Taken in the Investigation In accordance with section 301(b) of the Trade Act, the U.S. Trade Representative has determined that action is appropriate in this investigation. Section 301(b) provides E:\FR\FM\07JNN1.SGM 07JNN1

Agencies

[Federal Register Volume 86, Number 107 (Monday, June 7, 2021)]
[Notices]
[Pages 30361-30364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11856]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2021-0002]


Notice of Action in the Section 301 Investigation of Austria's 
Digital Services Tax

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: On January 14, 2021, the U.S. Trade Representative announced a 
determination that Austria's Digital Services Tax (DST) is unreasonable 
or discriminatory and burdens or restricts U.S. commerce. This notice 
announces the U.S. Trade Representative's determination to take action 
in the form of additional duties of 25 percent on the products of 
Austria specified in Annex A to this notice. The U.S. Trade 
Representative has further determined to suspend application of the 
additional duties for a period of up to 180 days.

DATES: 
    June 2, 2021: The U.S. Trade Representative determined to take 
action in the form of additional duties of 25 percent on products of 
Austria specified in Annex A.
    November 29, 2021: The end of the 180-day suspension period for the 
additional duties.

FOR FURTHER INFORMATION CONTACT: For questions concerning the 
investigation, please contact Benjamin Allen, Thomas Au, or Patrick 
Childress, Assistant General Counsels at: (202) 395-9439, (202) 395-
0380, and (202) 385-9531, respectively; Robert Tanner, Director, 
Services and Investment at (202) 395-6125; or Michael Rogers, Director 
for Europe and the Middle East at (202) 395-2684. For specific 
questions on customs classification or implementation of additional 
duties on products, contact [email protected].

SUPPLEMENTARY INFORMATION: 

I. Proceedings in the Investigation

    Austria has adopted a DST that imposes a 5 percent tax on gross 
revenues from digital advertising services provided in Austria. The DST 
applies only to companies with annual global revenues of [euro]750 
million or more, and annual revenues from digital advertising services 
in Austria of [euro]25 million or more. On June 2, 2020, the U.S. Trade 
Representative initiated an investigation of Austria'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 Austria's DST: Discrimination against U.S. companies; 
retroactivity; and possibly unreasonable tax policy. With respect to

[[Page 30362]]

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 Austria regarding the 
issues involved in the investigation. Consultations were held on 
December 21, 2020. Based on information obtained during the 
investigation, USTR prepared a comprehensive report on Austria's DST, 
which 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 Austria's DST, and 
supports findings that Austria'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 
Austria'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. See 86 FR 6406 (January 21, 2021).
    On March 31, 2021, USTR issued a notice proposing that appropriate 
action would include additional ad valorem duties of up to 25 percent 
on products of Austria to be drawn from a list of 40 tariff subheadings 
of the Harmonized Tariff Schedule of the United States (HTSUS) included 
in the annex to that notice. The March 31, 2021 notice requested 
comments on the proposed action as well as on other potential actions 
in the investigation. Witnesses provided testimony at public hearings 
held on May 3 and May 6, 2021, and interested persons filed written 
comments. Transcripts from the hearings are available on the USTR 
website at: https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-digital-services-taxes. The written public 
submissions are available at: https://comments.ustr.gov/s/docket?docketNumber=USTR-2021-0002 and https://comments.ustr.gov/s/docket?docketNumber=USTR-2021-0008.

II. Determination of Action To Be Taken in the Investigation

    In accordance with section 301(b) of the Trade Act, the U.S. Trade 
Representative has determined that action is appropriate in this 
investigation. 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) of 
the Trade Act, 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 304(a)(2)(B) 
provides that the U.S. Trade Representative shall make the 
determination of what action to take on or before the date that is 12 
months after the date on which the investigation was initiated, or in 
this case, by June 2, 2021.
    Pursuant to sections 301(b) and (c) of the Trade Act, and in 
accordance with the advice of the Section 301 Committee, the U.S. Trade 
Representative has determined that appropriate action is the imposition 
of ad valorem duties of 25 percent on products of Austria specified in 
Annex A to this notice. Annex A contains a list of 23 tariff 
subheadings, with an estimated trade value for calendar year 2019 of 
approximately $65 million. In making this determination, the U.S. Trade 
Representative considered the public comments submitted in the 
investigation, as well as advice of advisory committees. In determining 
the level of trade covered by the additional duties, the U.S. Trade 
Representative considered the value of digital transactions covered by 
Austria's DST and the amount of taxes assessed by Austria on U.S. 
companies. Estimates indicate that the value of the DST payable by 
U.S.-based company groups to Austria will be up to approximately $45 
million per year. The level of trade covered by the action takes into 
account estimates of the amount of tariffs to be collected on goods of 
Austria and the estimates of the amount of taxes assessed by Austria.
    Section 305(a) of the Trade Act provides, in pertinent part, that 
the U.S. Trade Representative may delay implementation of the action to 
be taken for up to 180 days ``if the Trade Representative determines . 
. . that a delay is necessary or desirable . . . to obtain . . . [a] 
satisfactory solution with respect to the acts, policies, or practices 
that are the subject of the action.'' Pursuant to section 305(a), the 
U.S. Trade Representative has determined to suspend the additional 
duties for up to 180 days (that is, up to November 29, 2021) to allow 
additional time for multilateral and bilateral discussions that could 
lead to a satisfactory resolution of this matter.
    In order to implement this determination, subchapter III of chapter 
99 of the HTSUS is modified by Annex A of this notice. Annex A is 
effective with respect to goods entered for consumption, or withdrawn 
from warehouse for consumption, on or after 12:01 a.m. eastern standard 
time on November 29, 2021, which is 180 days after the determination of 
action. In the event the U.S. Trade Representative determines that the 
suspension of the additional duties should be for less than a period of 
180 days, USTR will issue a subsequent notice amending the effective 
date. For informational purposes, Annex B contains a list of the tariff 
subheadings covered by the tariff action along with short product 
descriptions. In all cases, the formal language in Annex A governs the 
tariff treatment of products covered by the action. As specified in 
Annex A, products provided for in new HTSUS heading 9903.90.02 will be 
subject to an additional ad valorem duty of 25 percent. The additional 
duties provided for in the new HTSUS heading established by Annex A 
apply in addition to all other applicable duties, fees, exactions, and 
charges. Any product listed in Annex A, except any product that is 
eligible for admission under `domestic status' as defined in 19 CFR 
146.43, which is subject to the additional duty imposed by this 
determination, and is admitted into a U.S. foreign trade zone on or 
after 12:01 a.m. eastern standard time on November 29, 2021, only may 
be admitted as `privileged foreign status' as defined in 19 CFR 146.41. 
Such products will be subject upon entry for consumption to any ad 
valorem rates of duty or quantitative limitations related to the 
classification under the applicable HTSUS subheading.
    The U.S. Trade Representative will continue to monitor the effect 
of the trade action, the progress of discussions in the Organisation 
for Economic Co-operation and Development and G20, the progress of 
discussions with Austria, and may adopt appropriate modifications. If a 
modification to the action may be appropriate, the U.S. Trade 
Representative will consider the

[[Page 30363]]

comments received in response to the March 31, 2021 notice.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.

Annex A

    Effective with respect to goods entered for consumption, or 
withdrawn from warehouse for consumption, on or after 12:01 a.m. 
eastern standard time on November 29, 2021, subchapter III of chapter 
99 of the Harmonized Tariff Schedule of the United States (HTSUS) is 
modified:
    1. By inserting the following new U.S. notes 23(a) and 23(b) to 
subchapter III of chapter 99 in numerical sequence:
    ``23 (a) For the purposes of heading 9903.90.02, products of 
Austria, as specified in this note, shall be subject to additional 
duties as provided herein. All products of Austria that are classified 
in the subheadings enumerated in this note are subject to the 
additional duties imposed by heading 9903.90.02. The duties imposed by 
heading 9903.90.02 shall be in addition to the general duty rates 
provided for in the applicable provisions of the tariff schedule.
    Products of Austria that are classified in the subheadings 
enumerated in this note and that are eligible for temporary duty 
exemptions or reductions under subchapter II to chapter 99 shall be 
subject to the additional duties imposed by heading 9903.90.02, and any 
such duty exemption or reduction shall apply only to the permanent 
general rate prescribed in provisions of chapters 1 through 97 of the 
tariff schedule.
    The additional duties imposed by heading 9903.90.02 do not apply to 
goods for which entry is properly claimed under a provision of chapter 
98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 
9802.00.50 and 9802.00.60 and heading 9802.00.80. For subheadings 
9802.00.40, 9802.00.50 and 9802.00.60, the additional duties apply to 
the value of repairs, alterations or processing performed in Austria 
and as described in the applicable subheading. For heading 9802.00.80, 
the additional duties apply to the value of the article less the cost 
or value of such products of the United States, as described in heading 
9802.00.80.
    Products of Austria that are provided for in heading 9903.90.02 and 
classified in one of the subheadings enumerated in note 23(b) to this 
subchapter shall continue to be subject to antidumping, countervailing 
or other duties (including duties imposed by other provisions of 
subchapter III of this chapter and safeguard duties set forth in 
provisions of subchapter IV of this chapter), fees, exactions and 
charges that apply to such products, as well as to the additional 
duties imposed herein.
    (b) Heading 9903.90.02 shall apply to all products of Austria that 
are classified in the subheadings enumerated below:

6903.20.00
7013.22.50
7013.28.20
7013.28.50
7013.28.60
7013.37.20
7013.37.60
7013.41.50
7013.49.60
7013.91.50
7019.90.10
7019.90.50
7403.29.01
8418.10.00
9003.11.00
9005.10.00
9005.80.40
9005.80.60
9010.60.00
9012.10.00
9015.40.80
9015.80.20
9027.50.80''.

    2. by inserting the following new heading 9903.90.02 in numerical 
sequence, with the material in the new heading inserted in the columns 
of the HTSUS labeled ``Heading/Subheading'', ``Article Description'', 
and ``Rates of Duty 1-General'', respectively:

----------------------------------------------------------------------------------------------------------------
                                                                               Rates of duty
                                                         -------------------------------------------------------
       Heading/subheading          Article description                      1
                                                         ---------------------------------------        2
                                                                General            Special
----------------------------------------------------------------------------------------------------------------
``9903.90.02...................  ``Articles the product   The duty provided
                                  of Austria, as           in the applicable
                                  provided for in U.S.     subheading +
                                  note 23(a) to this       25%''.
                                  subchapter and as
                                  provided for in the
                                  subheadings enumerated
                                  in U.S. note 23(b) to
                                  this subchapter.
----------------------------------------------------------------------------------------------------------------

Annex B

    Note: 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 action. In all cases, the formal 
language in Annex A governs the tariff treatment of products covered by 
the action. Any questions regarding the scope of particular HTSUS 
subheadings 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
------------------------------------------------------------------------
6903.20.00.......................  Refractory ceramic goods (o/than of
                                    siliceous fossil meals or earths),
                                    nesoi, cont. by wt. o/50% alumina or
                                    mix. or comp. of Al2O3 & SiO2.
7013.22.50.......................  Stemware drinking glasses of lead
                                    crystal, valued over $5 each.
7013.28.20.......................  Stemware, o/than of pressed and
                                    toughened glass, o/than lead
                                    crystal, valued o/$0.30 but n/over
                                    $3 each.
7013.28.50.......................  Stemware, o/than of pressed and
                                    toughened glass, o/than lead
                                    crystal, not cut or engraved, valued
                                    o/$3 but n/over $5 each.
7013.28.60.......................  Stemware, o/than of pressed and
                                    toughened glass, o/than lead
                                    crystal, not cut or engraved, valued
                                    over $5 each.
7013.37.20.......................  Drinking glasses, nesoi, o/than of
                                    pressed and toughened glass, o/than
                                    lead crystal, valued o/$0.30 but n/
                                    over $3 each.
7013.37.60.......................  Drinking glasses, nesoi, o/than of
                                    pressed and toughened glass, o/than
                                    lead crystal, not cut or engraved,
                                    valued over $5 each.
7013.41.50.......................  Glassware for table or kitchen
                                    purposes (o/than drinking glasses),
                                    of lead crystal, valued over $5
                                    each.
7013.49.60.......................  Glassware for table or kitchen
                                    purposes (o/than drinking glasses),
                                    nesoi, n/cut or engraved, valued
                                    over $5 each.
7013.91.50.......................  Glassware for toilet/office/indoor
                                    decor. & similar purposes, of lead
                                    crystal, valued over $5 each.
7019.90.10.......................  Woven glass fiber articles (other
                                    than fabrics), nesoi.

[[Page 30364]]

 
7019.90.50.......................  Glass fibers (including glass wool),
                                    nesoi, and articles thereof, nesoi.
7403.29.01.......................  Copper alloys (o/than copper-zinc,
                                    copper-tin alloys), unwrought nesoi.
8418.10.00.......................  Combined refrigerator-freezers,
                                    fitted with separate external doors,
                                    electric or other.
9003.11.00.......................  Frames and mountings, of plastics,
                                    for spectacles, goggles or the like.
9005.10.00.......................  Binoculars.
9005.80.40.......................  Optical telescopes, including
                                    monoculars.
9005.80.60.......................  Monoculars and astronomical
                                    instruments other than binoculars
                                    and optical telescopes but not
                                    including instruments for radio-
                                    astronomy.
9010.60.00.......................  Projection screens.
9012.10.00.......................  Microscopes other than optical
                                    microscopes; diffraction apparatus.
9015.40.80.......................  Photogrammetrical surveying
                                    instruments and appliances, other
                                    than electrical.
9015.80.20.......................  Optical surveying, hydrographic,
                                    oceanographic, hydrological,
                                    meteorological or geophysical
                                    instruments and appliances, nesoi.
9027.50.80.......................  Nonelectrical instruments and
                                    apparatus using optical radiations
                                    (ultraviolet, visible, infrared),
                                    nesoi.
------------------------------------------------------------------------


[FR Doc. 2021-11856 Filed 6-4-21; 8:45 am]
BILLING CODE 3290-F1-P