Notice of Product Exclusion Extensions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 31580-31589 [2023-10460]

Agencies

• Office of the United States Trade Representative

[Federal Register Volume 88, Number 95 (Wednesday, May 17, 2023)]
[Notices]
[Pages 31580-31589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10460]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion Extensions: China's Acts, Policies, 
and Practices Related to Technology Transfer, Intellectual Property, 
and Innovation

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

ACTION: Notice.

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SUMMARY: In prior notices, the U.S. Trade Representative modified the 
actions in the Section 301 investigation of China's acts, policies, and 
practices related to technology transfer, intellectual property, and 
innovation by excluding from additional duties certain medical-care 
products needed to address COVID, and subsequently extended certain of 
these exclusions. The current COVID exclusions--covering 81 medical-
care products--are scheduled to expire on May 15, 2023. This notice 
announces the U.S. Trade Representative's determination to provide a 
16-day transition period for all COVID exclusions, extending them 
through May 31, 2023, and to extend 77 of the COVID exclusions through 
September 30, 2023.

DATES: To provide a transition period, this notice extends the 81 
exclusions scheduled to expire on May 15, 2023 through May 31, 2023, 
listed in Annex B to notice 86 FR 63438). Those exclusions receiving 
further extensions and listed in the Annex to this notice are extended 
through September 30, 2023. U.S. Customs and Border Protection will 
issue instructions on entry guidance and implementation.

FOR FURTHER INFORMATION CONTACT: For general questions about this 
notice, contact Associate General Counsel Philip Butler or Assistant 
General Counsel Edward Marcus at (202) 395-5725. For specific questions 
on customs classification or implementation of the product exclusions, 
contact [email protected].

SUPPLEMENTARY INFORMATION: 

A. Background

    In the course of this investigation, the U.S. Trade Representative 
has imposed additional duties on products of China in four tranches. 
See 83 FR 28719 (June 20, 2018); 83 FR 40823 (August 16, 2018); 83 FR 
47974 (September 21, 2018), as modified by 83 FR 49153 (September 28, 
2018); and 84 FR 43304 (August 20, 2019), as modified by 84 FR 69447 
(December 18, 2019) and 85 FR 3741 (January 22, 2020).
    For each tranche, the U.S. Trade Representative established a 
process by which U.S. stakeholders could request the exclusion of 
particular products subject to the action. Additionally, on March 25, 
2020, USTR requested public comments on proposed modifications to 
exclude from additional duties certain medical-care products related to 
the U.S. response to COVID. 85 FR 16987 (March 25, 2020).
    On December 29, 2020, USTR announced 99 product exclusions for 
medical-care products and products related to the U.S. COVID response. 
These 99 exclusions were later extended until September 30, 2021. 86 FR 
13785. On August 27, 2021, USTR published a notice requesting public 
comments on whether any of these exclusions should be further extended 
for up to six months. 86 FR 48280. On November 16, 2021, USTR announced 
the U.S. Trade Representative's determination to extend 81 of these 
exclusions for an additional 6 months. See 86 FR 63438 (November 16, 
2021). The notice further provided that the U.S. Trade Representative 
might consider further extensions and/or modifications as appropriate. 
86 FR 63438. These 81 exclusions were subsequently extended through 
February 28, 2023. See 87 FR 33871 (June 03, 2022); 87 FR 73383 
(November 29, 2022).
    On February 7, 2023, USTR published a notice requesting public 
comments on whether to further extend any of these exclusions for up to 
6 months and announced an interim extension of the 81 exclusions 
through May 15, 2023, to allow time for consideration of the public 
comments. 87 FR 8027 (February 7, 2023). The February 7 notice stated 
that USTR would evaluate each of the 81 exclusions on a case-by-case 
basis. The evaluation would examine whether it remains appropriate to 
exclude certain products from additional Section 301 duties in light of 
the changing circumstances, including the spread of variants or 
subvariants and the increased domestic production and availability of 
certain products, and taking account of the overall impact of these 
exclusions on the goal of obtaining the elimination of China's acts, 
policies, and practices covered in this Section 301 investigation.
    In accordance with Section 307(c)(3) of the Trade Act of 1974, on 
September 8, 2022, USTR announced that it would be conducting a review 
of the July 6, 2018 and August 23, 2018 actions, as modified. See 87 FR 
26797 (May 5, 2022); 87 FR 55073 (September 8, 2022). Section 307(c) of 
the Trade Act of 1974 requires the U.S. Trade Representative to conduct 
a review of: (A) the effectiveness in achieving the objectives of 
Section 301 of (i) such action, and (ii) other actions that could be 
taken (including actions against other products or services), and (B) 
the effects of such actions on the United States economy, including 
consumers. See 19 U.S.C. 2417(c)(3)(A) and (B). In a notice published 
on October 17, 2022 (87 FR 62914), USTR announced that it was opening a 
docket on November 15, 2022 (USTR-2022-0014) for interested persons to 
submit comments with respect to any aspect of Section 307(c) 
considerations, including whether certain tariff headings should remain 
covered by the actions.

B. Determination To Extend Certain Exclusions

    Based on evaluation of the public comments and the factors set out 
in in the February 7 notice, and pursuant to sections 301(b), 301(c), 
and 307(a) of the Trade Act of 1974, as amended, the U.S. Trade 
Representative has determined to extend 77 of the COVID-related 
exclusions as set out in the Annex to this notice through September 30, 
2023. The U.S. Trade Representative has determined that extending these 
77 exclusions is not likely to adversely harm domestic manufacturing of 
products covered by the exclusions, and extending them through 
September 30, 2023 will allow the U.S. Trade Representative to consider 
and align, as appropriate, the exclusions with the results of the 
statutory 4-year review. The U.S. Trade Representative's determination 
to extend these exclusions takes into account public comments submitted 
in response to the February 7 notice and the advice of advisory 
committees, the interagency Section 301 Committee, and the White House 
COVID Response Team.
    To provide a transition period for the expiring exclusions, the 
U.S. Trade Representative has determined to extend all 81 COVID-related 
exclusions described in Annex B of the November 16, 2021 (86 FR 63438) 
notice through May 31, 2023.
    The exclusion extensions are available for any product that meets 
the description in the product exclusion. Further, the scope of each 
exclusion and modification is governed by the scope of the ten-digit 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings and 
product descriptions in the Annex to this notice. U.S. Customs and 
Border Protection will issue instructions on entry guidance and 
implementation.
    The U.S. Trade Representative may continue to consider further 
extensions and/or additional modifications as appropriate.
    The U.S. Trade Representative's determination not to extend certain 
COVID-related exclusions does not affect exclusions reinstated October 
12, 2021 under docket number USTR-2021-0019 and subsequently extended 
through September 30, 2023. See 87 FR 78187 (December 21, 2022).

Greta Peisch,
General Counsel, Offfice of the United States Trade Representative.
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[FR Doc. 2023-10460 Filed 5-16-23; 8:45 am]
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