Notice of Modification: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 101682-101684 [2024-29462]
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101682
Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices
local office prints a copy for the
respondent’s ink signature, then submits
the signed form to the RA headquarters.
Kelly A Gauger,
Deputy Director, PRM/A, Department of State.
[FR Doc. 2024–29538 Filed 12–13–24; 8:45 am]
BILLING CODE 4710–33–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Notice of Modification: China’s Acts,
Policies, and Practices Related to
Technology Transfer, Intellectual
Property, and Innovation
Office of the United States
Trade Representative (USTR).
ACTION: Notice of modification of
actions.
AGENCY:
In a notice published on
September 18, 2024, the U.S. Trade
Representative proposed additional
modifications to the actions taken in the
Section 301 investigation of China’s
acts, policies, and practices related to
technology transfer, intellectual
property, and innovation. Specifically,
the U.S. Trade Representative proposed
increasing Section 301 tariff rates on
five subheadings of the Harmonized
Tariff Schedule of the United States
(HTSUS) covering certain tungsten
products, wafers, and polysilicon. In a
notice published on September 24,
2024, USTR announced the opening of
an electronic portal for interested
parties to submit comments on the
proposed tariff increases. This notice
announces the U.S. Trade
Representative’s determination to
modify the actions being taken in this
investigation by increasing tariff rates
on the five subheadings.
DATES: January 1, 2025, at 12:01 a.m.
EST: Tariff increases on the tariff
subheadings set out in the Annex to this
notice are applicable with respect to
products that are entered for
consumption, or withdrawn from
warehouse for consumption, on or after
January 1, 2025.
FOR FURTHER INFORMATION CONTACT: For
general questions about this notice,
contact Philip Butler and Megan
Grimball, Chairs of the Section 301
Committee at 202.395.5725. For specific
questions on customs classification,
contact traderemedy@cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
lotter on DSK11XQN23PROD with NOTICES1
SUMMARY:
A. Background
For background on the proceedings in
this investigation, please see the prior
notices including 82 FR 40213 (August
24, 2017), 83 FR 14906 (April 6, 2018),
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17:41 Dec 13, 2024
Jkt 265001
83 FR 28710 (June 20, 2018), and 83 FR
40823 (August 16, 2018).
On September 8, 2022, USTR
announced that in accordance with
Section 307(c)(3) of the Trade Act (19
U.S.C. 2417(c)(3)), the U.S. Trade
Representative would conduct a review
of the two actions taken, as modified, in
this investigation. See 87 FR 55073.
Based on information obtained during
the review, USTR, in consultation with
the Section 301 Committee, prepared a
comprehensive report that included
findings on the effectiveness of the
actions taken in this investigation in
achieving the objectives of the
investigation, other actions that could
be taken, and the effects of such actions
on the United States economy,
including consumers. The report, FourYear Review of Actions Taken in the
Section 301 Investigation: China’s Acts,
Policies, and Practices Related to
Technology Transfer, Intellectual
Property, and Innovation (Report), was
published on May 14, 2024, and is
available on the USTR website.
On May 14, 2024, taking into
consideration the U.S. Trade
Representative’s findings in the Report
and recommendations, the President
issued a Memorandum (President’s
Memorandum) that directed the U.S.
Trade Representative to: ‘‘maintain, as
appropriate and consistent with this
memorandum, the ad valorem rates of
duty and lists of products subject to the
[actions] taken under the Section 301
investigation’’ and ‘‘[t]o further
encourage China to eliminate the acts,
policies, and practices at issue, and to
counteract the burden or restriction of
these acts, policies, and practices, the
Trade Representative shall modify the
[actions taken in the investigation] to
increase Section 301 ad valorem rates of
duty’’ for certain specified products of
China. See https://www.whitehouse.gov/
briefing-room/presidential-actions/
2024/05/14/memorandum-on-actionsby-the-united-states-related-to-thestatutory-4-year-review-of-the-section301-investigation-of-chinas-actspolicies-and-practices-related-totechnology-transfer-intellectua/. In
particular, the President’s Memorandum
specified 14 categories of products for
proposed tariff increases, tariff rates for
those products, and year for tariff
increases.
Consistent with the President’s
direction, USTR issued a Federal
Register notice with proposed
modifications, including proposed
increases in Section 301 duties on 382
HTSUS subheadings and 5 statistical
reporting numbers of the HTSUS, with
an approximate annual trade value of
$18 billion (2023). See 89 FR 46252
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Sfmt 4703
(May 28, 2024) (May 28 notice). In
accordance with Section 307(a)(2) of the
Trade Act (19 U.S.C. 2417(a)(2)), USTR
invited comments from interested
persons and opened a 30-day docket on
May 29, 2024 (USTR–2024–0007). See
May 28 notice.
On September 18, 2024, the U.S.
Trade Representative announced
modifications to the actions, including
certain adjustments to the modifications
proposed in the May 28 notice. See 89
FR 76581 (September 18, 2024)
(September 18 notice). Additionally,
and based on comments requesting that
certain HTSUS subheadings be added to
the 382 HTSUS subheadings proposed
for tariff increases, the U.S. Trade
Representative proposed increasing
Section 301 duties on 5 additional
HTSUS subheadings covering certain
tungsten products, wafers, and
polysilicon.
In accordance with Section 307(a)(2)
of the Trade Act, USTR invited
comments from interested persons and
opened a 30-day docket on September
24, 2024 (USTR–2024–0016). See 89 FR
77958 (September 24, 2024) (September
24 notice).
B. Determination To Modify the Actions
Pursuant to Sections 307(c) and
307(a)(1) of the Trade Act (19 U.S.C.
2417(c), (a)(1)), the U.S. Trade
Representative may modify or terminate
any action, subject to the specific
direction, if any, of the President with
respect to such action, that is being
taken under Section 301 if the burden
or restriction on U.S. commerce of the
acts, policies, and practices that are the
subject of such action has increased or
decreased, or such action is being taken
under Section 301(b) and no longer is
appropriate.
As previously discussed, modification
of the actions is warranted under
Section 307(a)(1)(B) and Section
307(a)(1)(C). See 89 FR 76581
(September 18, 2024). The modifications
to the actions are set out in the Annex
to this notice. The U.S. Trade
Representative’s determination takes
account of the public comments, the
President’s Memorandum and the
policy rationale underlying the
President’s direction, as well as the
advice of the interagency Section 301
committee and appropriate advisory
committees.
Any product listed in the Annex to
this notice, which is subject to the
additional duties imposed by this
determination, and that is admitted into
a U.S. foreign trade zone, except any
product that is eligible for admission
under ‘‘domestic status’’ as defined in
19 CFR 146.43, only may be admitted as
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‘‘privileged foreign status,’’ as defined
in 19 CFR 146.41, effective as of the date
that the additional duties are imposed.
Products of China that are provided for
in headings 9903.91.11 and listed in
subdivision (j) of U.S. note 31 to
subchapter III of chapter 99 of the
HTSUS, which are admitted into a U.S.
foreign trade zone on or after 12:01 a.m.
eastern daylight time on January 1,
2025, only may be admitted as
‘‘privileged foreign status.’’ All 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.
C. USTR’s Responses to Significant
Comments
As discussed above, in light of
comments requesting that certain
HTSUS subheadings be added to the
382 HTSUS subheadings proposed for
tariff increases, the U.S. Trade
Representative proposed increasing
Section 301 duties on 5 additional
HTSUS subheadings falling under 2 of
the 14 categories of products proposed
for tariff increases. Specifically, the U.S.
Trade Representative proposed
increasing tariffs to 25 percent for 3
additional subheadings under ‘‘other
critical minerals’’ covering certain
tungsten products and proposed
increasing tariffs to 50 percent for 2
additional subheadings under ‘‘solar
cells’’ covering wafers and polysilicon.
See 89 FR 76581.
Tungsten Subheadings: Consistent
with the President’s Memorandum to
increase tariffs on other critical minerals
to 25 percent, the U.S. Trade
Representative proposed increasing
tariffs to 25 percent on 3 additional
subheadings covering certain tungsten
products: 8101.94.00 (Tungsten,
unwrought (including bars and rods
obtained simply by sintering));
8101.99.10 (Tungsten bars and rods (o/
than those obtained simply by
sintering), profiles, plates, sheets, strip
and foil); and 8101.99.80 (Tungsten,
articles nesoi).
Comments supporting increases
primarily assert that increasing tariffs on
tungsten products is vital to the security
and the resilience of domestic supply
chains for critical U.S. industries,
including aerospace, automotive,
defense, medical, and the oil and gas
industries. Some supporting comments
recommend tariff rates as high as 75
percent to address China’s efforts to
dominate and undercut domestic
production.
Comments opposing increases
primarily assert limited availability of
tungsten products outside of China,
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estimating that China accounts for
approximately 80 percent of global
tungsten reserves, and insufficient
quantities available from third country
sources. These comments express
concerns that increased tariffs on
tungsten will increase production costs,
exacerbate inflation, harm U.S.
competitiveness, and decrease U.S.
market share. One comment encouraged
USTR to take alternative actions to
tariffs.
Considering the comments and the
advice of the Section 301 Committee,
and consistent with the President’s
direction to increase tariffs on other
critical minerals to 25 percent, the U.S.
Trade Representative has determined to
increase tariffs on the 3 tungsten
subheadings to 25 percent beginning in
2025. Continued reliance on China for
tungsten products leaves U.S. supply
chains vulnerable and puts U.S.
national security at risk. Imports from
China continue to undercut domestic
production, and increasing tariffs will
make domestic producers more
competitive, which will increase
leverage on China to eliminate its
harmful acts, policies, and practices,
and reduce vulnerability to those
harmful acts, policies, and practices.
Increasing duties on these products will
support current investments, stimulate
greater domestic production, and spur
additional investments in domestic
capacity.
Polysilicon and Wafer Subheadings:
Consistent with the President’s
Memorandum to increase tariffs on solar
cells to 50 percent, the U.S. Trade
Representative proposed increasing
tariffs to 50 percent on 2 subheadings
covering polysilicon and wafers:
2804.61.00 (Silicon containing by
weight not less than 99.99 percent of
silicon); and 3818.00.00 (Chemical
elements doped for use in electronics, in
the form of discs, wafers etc., chemical
compounds doped for electronic use).
Nearly all comments support
increasing tariffs on polysilicon, noting
the importance of the tariffs in helping
to ensure the development and growth
of the domestic industry producing
polysilicon and downstream products
and develop alternative supply chains
outside of China. Specifically, the
comments assert that the tariffs help to
support recent investments by the
domestic industry and increasing the
tariffs to 50 percent will further support
additional domestic production
scheduled to come online in 2025.
USTR received one comment opposing
the tariff increase. The comment asserts
that Section 301 tariffs have not resulted
in changing China’s behavior and
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101683
increasing the tariff will only increase
prices for domestic companies.
The majority of comments support
increasing tariffs on wafers. The
comments note that increasing tariffs
will increase the effectiveness of the
actions, provide additional support to
the domestic industry, including recent
investments, and help to strengthen
alternative supply chains. Specifically,
commenters note that higher tariffs will
counteract China’s unfair practices,
which have allowed Chinese companies
to dominate supply chains, and allow
domestic producers to increase
production, and continue to invest in
additional capacity. To give domestic
producers time to increase production,
some of the comments supporting
higher tariffs either suggest delaying the
tariffs or allowing for certain exclusions.
Other comments supporting higher
tariffs suggest increasing tariffs
immediately. Comments opposing the
tariffs generally assert that the tariffs
have not been effective and only
negatively impacted the U.S. economy.
One comment opposing the tariff
increase suggests delaying the increase
until domestic production has
increased.
Considering the comments and the
advice of the Section 301 Committee,
and consistent with the President’s
direction to increase tariffs on solar cells
to 50 percent, the U.S. Trade
Representative has determined to
increase tariffs on polysilicon and
wafers to 50 percent in 2025. Increasing
tariffs on polysilicon and wafers will
complement recent investments,
encourage diversification away from
Chinese sources, provide additional
leverage with China to eliminate the
investigated acts, policies, and
practices, and reduce vulnerability to
those harmful acts, policies, and
practices. While increasing tariffs may
result in higher prices initially, the
tariffs are necessary to allow domestic
producers to compete against China’s
massive excess capacity, defend recent
investments, and encourage more
domestic manufacturing.
The U.S. Trade Representative will
continue to consider the actions taken
in this investigation. In the event that
further modifications are appropriate,
the U.S. Trade Representative intends to
take into account the extensive public
comments provided in response to the
May 28 notice and the September 24
notice.
D. Technical Correction
In the September 18 notice, USTR
announced that it had determined to
increase the rate of additional duties on
medical gloves of vulcanized rubber,
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101684
Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices
other than hard rubber, to 50 percent in
2025 and to 100 percent in 2026. The
additional 100 percent duties that were
to be effective on January 1, 2026, were
provided for in HTSUS heading
9903.91.08. Due to a publishing error in
the Federal Register notice, heading
9903.91.08 did not contain the
additional duties in the Rates of Duty
1—General column. To correct this
error, USTR is making a technical
correction to heading 9903.91.08 in
Annex B(4) to insert the additional 100
percent duties that are to be effective on
January 1, 2026.
Annex A—Tariff Increases
HTSUS subheading
Product description
8101.94.00 ........................
8101.99.10 ........................
Tungsten, unwrought (including bars and rods obtained simply by sintering .........
Tungsten bars and rods (o/than those obtained simply by sintering), profiles,
plates, sheets, strip and foil.
Tungsten, articles nesoi ...........................................................................................
Silicon containing by weight not less than 99.99 percent of silicon ........................
Chemical elements doped for use in electronics, in the form of discs, wafers etc.,
chemical compounds doped for electronic use.
8101.99.80 ........................
2804.61.00 ........................
3818.00.00 ........................
Annex B—Changes to Harmonized
Tariff Schedule of the United States
1. Effective with respect to goods
entered for consumption, or withdrawn
from warehouse for consumption, on or
after 12:01 a.m. eastern daylight time on
Rate (%)
January 1, 2025, subchapter III of
chapter 99 of the Harmonized Tariff
Schedule of the United States (HTSUS)
is modified:
A. by inserting the following new
heading 9903.91.11 in numerical
Timing
25
25
2025
2025
25
50
50
2025
2025
2025
sequence, with the material in the new
heading inserted in the columns of the
HTSUS labeled ‘‘Heading/Subheading’’,
‘‘Article Description’’, ‘‘Rates of Duty 1General’’, ‘‘Rates of Duty 1-Special’’ and
‘‘Rates of Duty 2’’, respectively:
Rates of Duty
Heading/
subheading
Article description
1
2
General
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‘‘9903.91.11 ........
Effective with respect to entries on or after January
1, 2025, articles the product of China, as provided
for in subdivision (j) of U.S. note 31 to this subchapter.
B. by inserting the following new
subdivision (j) to note 31 to subchapter
III of chapter 99 of the HTSUS:
‘‘(j) Heading 9903.91.11 applies to
products of China that are classified in
the following 8-digit subheadings,
effective with respect to goods entered
for consumption, or withdrawn from
warehouse for consumption, on or after
12:01 a.m. eastern daylight time on
January 1, 2025:
(1) 8101.94.00
(2) 8101.99.10
(3) 8101.99.80’’.
C. Subdivision (a) of note 31 to
subchapter III of chapter 99 of the
HTSUS is modified by deleting ‘‘and
9903.91.08’’ in six instances and
inserting ‘‘, 9903.91.08 and 9903.91.11’’
in lieu thereof in those six instances.
2. Effective with respect to goods
entered for consumption, or withdrawn
from warehouse for consumption, on or
after 12:01 a.m. eastern daylight time on
January 1, 2025, subchapter III of
chapter 99 of the Harmonized Tariff
Schedule of the United States (HTSUS)
is modified:
A. by deleting ‘‘2804.61.00’’ and
‘‘3818.00.00’’ from subdivision (f) of
note 20 to subchapter III of chapter 99
of the HTSUS; and
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Jkt 265001
The duty provided in the applicable
subheading + 25%’’.
B. subdivision (f) of note 31 to
subchapter III of chapter 99 of the
HTSUS is modified by inserting ‘‘(1)
2804.61.00’’ and ‘‘(2) 3818.00.00’’ in
numerical order and by renumbering the
remaining subheadings listed in
subdivision (f) of note 31 in numerical
order, beginning with ‘‘(3) 4015.12.10’’.
3. Effective on January 1, 2026,
subdivision (f) of note 31 to subchapter
III of chapter 99 of the HTSUS is
modified by deleting ‘‘(3) 4015.12.10’’.
4. The Rates of Duty 1-General
column of heading 9903.91.08 is
modified by inserting ‘‘The duty
provided in the applicable subheading +
100%’’.
Juan Millan,
Acting General Counsel, Office of the United
States Trade Representative.
[FR Doc. 2024–29462 Filed 12–13–24; 8:45 am]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No.: FAA–2024–0195; Summary
Notice No. 2024–45]
Petition for Exemption; Summary of
Petition Received; Wheels Up
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Notice.
AGENCY:
This notice contains a
summary of a petition seeking relief
from specified requirements of Federal
Aviation Regulations. The purpose of
this notice is to improve the public’s
awareness of, and participation in, the
FAA’s exemption process. Neither
publication of this notice nor the
inclusion nor omission of information
in the summary is intended to affect the
legal status of the petition or its final
disposition.
DATES: Comments on this petition must
identify the petition docket number and
must be received on or before January 6,
2025.
ADDRESSES: Send comments identified
by docket number FAA–2024–0195
using any of the following methods:
SUMMARY:
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]]>Agencies
[Federal Register Volume 89, Number 241 (Monday, December 16, 2024)]
[Notices]
[Pages 101682-101684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29462]
=======================================================================
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Modification: 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 of modification of actions.
-----------------------------------------------------------------------
SUMMARY: In a notice published on September 18, 2024, the U.S. Trade
Representative proposed additional modifications to the actions taken
in the Section 301 investigation of China's acts, policies, and
practices related to technology transfer, intellectual property, and
innovation. Specifically, the U.S. Trade Representative proposed
increasing Section 301 tariff rates on five subheadings of the
Harmonized Tariff Schedule of the United States (HTSUS) covering
certain tungsten products, wafers, and polysilicon. In a notice
published on September 24, 2024, USTR announced the opening of an
electronic portal for interested parties to submit comments on the
proposed tariff increases. This notice announces the U.S. Trade
Representative's determination to modify the actions being taken in
this investigation by increasing tariff rates on the five subheadings.
DATES: January 1, 2025, at 12:01 a.m. EST: Tariff increases on the
tariff subheadings set out in the Annex to this notice are applicable
with respect to products that are entered for consumption, or withdrawn
from warehouse for consumption, on or after January 1, 2025.
FOR FURTHER INFORMATION CONTACT: For general questions about this
notice, contact Philip Butler and Megan Grimball, Chairs of the Section
301 Committee at 202.395.5725. For specific questions on customs
classification, contact [email protected].
SUPPLEMENTARY INFORMATION:
A. Background
For background on the proceedings in this investigation, please see
the prior notices including 82 FR 40213 (August 24, 2017), 83 FR 14906
(April 6, 2018), 83 FR 28710 (June 20, 2018), and 83 FR 40823 (August
16, 2018).
On September 8, 2022, USTR announced that in accordance with
Section 307(c)(3) of the Trade Act (19 U.S.C. 2417(c)(3)), the U.S.
Trade Representative would conduct a review of the two actions taken,
as modified, in this investigation. See 87 FR 55073. Based on
information obtained during the review, USTR, in consultation with the
Section 301 Committee, prepared a comprehensive report that included
findings on the effectiveness of the actions taken in this
investigation in achieving the objectives of the investigation, other
actions that could be taken, and the effects of such actions on the
United States economy, including consumers. The report, Four-Year
Review of Actions Taken in the Section 301 Investigation: China's Acts,
Policies, and Practices Related to Technology Transfer, Intellectual
Property, and Innovation (Report), was published on May 14, 2024, and
is available on the USTR website.
On May 14, 2024, taking into consideration the U.S. Trade
Representative's findings in the Report and recommendations, the
President issued a Memorandum (President's Memorandum) that directed
the U.S. Trade Representative to: ``maintain, as appropriate and
consistent with this memorandum, the ad valorem rates of duty and lists
of products subject to the [actions] taken under the Section 301
investigation'' and ``[t]o further encourage China to eliminate the
acts, policies, and practices at issue, and to counteract the burden or
restriction of these acts, policies, and practices, the Trade
Representative shall modify the [actions taken in the investigation] to
increase Section 301 ad valorem rates of duty'' for certain specified
products of China. See https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/14/memorandum-on-actions-by-the-united-states-related-to-the-statutory-4-year-review-of-the-section-301-investigation-of-chinas-acts-policies-and-practices-related-to-technology-transfer-intellectua/. In particular, the President's
Memorandum specified 14 categories of products for proposed tariff
increases, tariff rates for those products, and year for tariff
increases.
Consistent with the President's direction, USTR issued a Federal
Register notice with proposed modifications, including proposed
increases in Section 301 duties on 382 HTSUS subheadings and 5
statistical reporting numbers of the HTSUS, with an approximate annual
trade value of $18 billion (2023). See 89 FR 46252 (May 28, 2024) (May
28 notice). In accordance with Section 307(a)(2) of the Trade Act (19
U.S.C. 2417(a)(2)), USTR invited comments from interested persons and
opened a 30-day docket on May 29, 2024 (USTR-2024-0007). See May 28
notice.
On September 18, 2024, the U.S. Trade Representative announced
modifications to the actions, including certain adjustments to the
modifications proposed in the May 28 notice. See 89 FR 76581 (September
18, 2024) (September 18 notice). Additionally, and based on comments
requesting that certain HTSUS subheadings be added to the 382 HTSUS
subheadings proposed for tariff increases, the U.S. Trade
Representative proposed increasing Section 301 duties on 5 additional
HTSUS subheadings covering certain tungsten products, wafers, and
polysilicon.
In accordance with Section 307(a)(2) of the Trade Act, USTR invited
comments from interested persons and opened a 30-day docket on
September 24, 2024 (USTR-2024-0016). See 89 FR 77958 (September 24,
2024) (September 24 notice).
B. Determination To Modify the Actions
Pursuant to Sections 307(c) and 307(a)(1) of the Trade Act (19
U.S.C. 2417(c), (a)(1)), the U.S. Trade Representative may modify or
terminate any action, subject to the specific direction, if any, of the
President with respect to such action, that is being taken under
Section 301 if the burden or restriction on U.S. commerce of the acts,
policies, and practices that are the subject of such action has
increased or decreased, or such action is being taken under Section
301(b) and no longer is appropriate.
As previously discussed, modification of the actions is warranted
under Section 307(a)(1)(B) and Section 307(a)(1)(C). See 89 FR 76581
(September 18, 2024). The modifications to the actions are set out in
the Annex to this notice. The U.S. Trade Representative's determination
takes account of the public comments, the President's Memorandum and
the policy rationale underlying the President's direction, as well as
the advice of the interagency Section 301 committee and appropriate
advisory committees.
Any product listed in the Annex to this notice, which is subject to
the additional duties imposed by this determination, and that is
admitted into a U.S. foreign trade zone, except any product that is
eligible for admission under ``domestic status'' as defined in 19 CFR
146.43, only may be admitted as
[[Page 101683]]
``privileged foreign status,'' as defined in 19 CFR 146.41, effective
as of the date that the additional duties are imposed. Products of
China that are provided for in headings 9903.91.11 and listed in
subdivision (j) of U.S. note 31 to subchapter III of chapter 99 of the
HTSUS, which are admitted into a U.S. foreign trade zone on or after
12:01 a.m. eastern daylight time on January 1, 2025, only may be
admitted as ``privileged foreign status.'' All 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.
C. USTR's Responses to Significant Comments
As discussed above, in light of comments requesting that certain
HTSUS subheadings be added to the 382 HTSUS subheadings proposed for
tariff increases, the U.S. Trade Representative proposed increasing
Section 301 duties on 5 additional HTSUS subheadings falling under 2 of
the 14 categories of products proposed for tariff increases.
Specifically, the U.S. Trade Representative proposed increasing tariffs
to 25 percent for 3 additional subheadings under ``other critical
minerals'' covering certain tungsten products and proposed increasing
tariffs to 50 percent for 2 additional subheadings under ``solar
cells'' covering wafers and polysilicon. See 89 FR 76581.
Tungsten Subheadings: Consistent with the President's Memorandum to
increase tariffs on other critical minerals to 25 percent, the U.S.
Trade Representative proposed increasing tariffs to 25 percent on 3
additional subheadings covering certain tungsten products: 8101.94.00
(Tungsten, unwrought (including bars and rods obtained simply by
sintering)); 8101.99.10 (Tungsten bars and rods (o/than those obtained
simply by sintering), profiles, plates, sheets, strip and foil); and
8101.99.80 (Tungsten, articles nesoi).
Comments supporting increases primarily assert that increasing
tariffs on tungsten products is vital to the security and the
resilience of domestic supply chains for critical U.S. industries,
including aerospace, automotive, defense, medical, and the oil and gas
industries. Some supporting comments recommend tariff rates as high as
75 percent to address China's efforts to dominate and undercut domestic
production.
Comments opposing increases primarily assert limited availability
of tungsten products outside of China, estimating that China accounts
for approximately 80 percent of global tungsten reserves, and
insufficient quantities available from third country sources. These
comments express concerns that increased tariffs on tungsten will
increase production costs, exacerbate inflation, harm U.S.
competitiveness, and decrease U.S. market share. One comment encouraged
USTR to take alternative actions to tariffs.
Considering the comments and the advice of the Section 301
Committee, and consistent with the President's direction to increase
tariffs on other critical minerals to 25 percent, the U.S. Trade
Representative has determined to increase tariffs on the 3 tungsten
subheadings to 25 percent beginning in 2025. Continued reliance on
China for tungsten products leaves U.S. supply chains vulnerable and
puts U.S. national security at risk. Imports from China continue to
undercut domestic production, and increasing tariffs will make domestic
producers more competitive, which will increase leverage on China to
eliminate its harmful acts, policies, and practices, and reduce
vulnerability to those harmful acts, policies, and practices.
Increasing duties on these products will support current investments,
stimulate greater domestic production, and spur additional investments
in domestic capacity.
Polysilicon and Wafer Subheadings: Consistent with the President's
Memorandum to increase tariffs on solar cells to 50 percent, the U.S.
Trade Representative proposed increasing tariffs to 50 percent on 2
subheadings covering polysilicon and wafers: 2804.61.00 (Silicon
containing by weight not less than 99.99 percent of silicon); and
3818.00.00 (Chemical elements doped for use in electronics, in the form
of discs, wafers etc., chemical compounds doped for electronic use).
Nearly all comments support increasing tariffs on polysilicon,
noting the importance of the tariffs in helping to ensure the
development and growth of the domestic industry producing polysilicon
and downstream products and develop alternative supply chains outside
of China. Specifically, the comments assert that the tariffs help to
support recent investments by the domestic industry and increasing the
tariffs to 50 percent will further support additional domestic
production scheduled to come online in 2025. USTR received one comment
opposing the tariff increase. The comment asserts that Section 301
tariffs have not resulted in changing China's behavior and increasing
the tariff will only increase prices for domestic companies.
The majority of comments support increasing tariffs on wafers. The
comments note that increasing tariffs will increase the effectiveness
of the actions, provide additional support to the domestic industry,
including recent investments, and help to strengthen alternative supply
chains. Specifically, commenters note that higher tariffs will
counteract China's unfair practices, which have allowed Chinese
companies to dominate supply chains, and allow domestic producers to
increase production, and continue to invest in additional capacity. To
give domestic producers time to increase production, some of the
comments supporting higher tariffs either suggest delaying the tariffs
or allowing for certain exclusions. Other comments supporting higher
tariffs suggest increasing tariffs immediately. Comments opposing the
tariffs generally assert that the tariffs have not been effective and
only negatively impacted the U.S. economy. One comment opposing the
tariff increase suggests delaying the increase until domestic
production has increased.
Considering the comments and the advice of the Section 301
Committee, and consistent with the President's direction to increase
tariffs on solar cells to 50 percent, the U.S. Trade Representative has
determined to increase tariffs on polysilicon and wafers to 50 percent
in 2025. Increasing tariffs on polysilicon and wafers will complement
recent investments, encourage diversification away from Chinese
sources, provide additional leverage with China to eliminate the
investigated acts, policies, and practices, and reduce vulnerability to
those harmful acts, policies, and practices. While increasing tariffs
may result in higher prices initially, the tariffs are necessary to
allow domestic producers to compete against China's massive excess
capacity, defend recent investments, and encourage more domestic
manufacturing.
The U.S. Trade Representative will continue to consider the actions
taken in this investigation. In the event that further modifications
are appropriate, the U.S. Trade Representative intends to take into
account the extensive public comments provided in response to the May
28 notice and the September 24 notice.
D. Technical Correction
In the September 18 notice, USTR announced that it had determined
to increase the rate of additional duties on medical gloves of
vulcanized rubber,
[[Page 101684]]
other than hard rubber, to 50 percent in 2025 and to 100 percent in
2026. The additional 100 percent duties that were to be effective on
January 1, 2026, were provided for in HTSUS heading 9903.91.08. Due to
a publishing error in the Federal Register notice, heading 9903.91.08
did not contain the additional duties in the Rates of Duty 1--General
column. To correct this error, USTR is making a technical correction to
heading 9903.91.08 in Annex B(4) to insert the additional 100 percent
duties that are to be effective on January 1, 2026.
Annex A--Tariff Increases
----------------------------------------------------------------------------------------------------------------
HTSUS subheading Product description Rate (%) Timing
----------------------------------------------------------------------------------------------------------------
8101.94.00............................ Tungsten, unwrought (including bars and 25 2025
rods obtained simply by sintering.
8101.99.10............................ Tungsten bars and rods (o/than those 25 2025
obtained simply by sintering),
profiles, plates, sheets, strip and
foil.
8101.99.80............................ Tungsten, articles nesoi................ 25 2025
2804.61.00............................ Silicon containing by weight not less 50 2025
than 99.99 percent of silicon.
3818.00.00............................ Chemical elements doped for use in 50 2025
electronics, in the form of discs,
wafers etc., chemical compounds doped
for electronic use.
----------------------------------------------------------------------------------------------------------------
Annex B--Changes to Harmonized Tariff Schedule of the United States
1. Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on January 1, 2025, subchapter III of chapter 99
of the Harmonized Tariff Schedule of the United States (HTSUS) is
modified:
A. by inserting the following new heading 9903.91.11 in numerical
sequence, with the material in the new heading inserted in the columns
of the HTSUS labeled ``Heading/Subheading'', ``Article Description'',
``Rates of Duty 1-General'', ``Rates of Duty 1-Special'' and ``Rates of
Duty 2'', respectively:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rates of Duty
-----------------------------------------------------------------
Heading/ subheading Article description 1
-------------------------------------------------- 2
General Special
--------------------------------------------------------------------------------------------------------------------------------------------------------
``9903.91.11............................. Effective with respect to entries on or The duty provided in the .............. ..............
after January 1, 2025, articles the applicable subheading + 25%''.
product of China, as provided for in
subdivision (j) of U.S. note 31 to this
subchapter.
--------------------------------------------------------------------------------------------------------------------------------------------------------
B. by inserting the following new subdivision (j) to note 31 to
subchapter III of chapter 99 of the HTSUS:
``(j) Heading 9903.91.11 applies to products of China that are
classified in the following 8-digit subheadings, effective with respect
to goods entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight time on January 1,
2025:
(1) 8101.94.00
(2) 8101.99.10
(3) 8101.99.80''.
C. Subdivision (a) of note 31 to subchapter III of chapter 99 of
the HTSUS is modified by deleting ``and 9903.91.08'' in six instances
and inserting ``, 9903.91.08 and 9903.91.11'' in lieu thereof in those
six instances.
2. Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on January 1, 2025, subchapter III of chapter 99
of the Harmonized Tariff Schedule of the United States (HTSUS) is
modified:
A. by deleting ``2804.61.00'' and ``3818.00.00'' from subdivision
(f) of note 20 to subchapter III of chapter 99 of the HTSUS; and
B. subdivision (f) of note 31 to subchapter III of chapter 99 of
the HTSUS is modified by inserting ``(1) 2804.61.00'' and ``(2)
3818.00.00'' in numerical order and by renumbering the remaining
subheadings listed in subdivision (f) of note 31 in numerical order,
beginning with ``(3) 4015.12.10''.
3. Effective on January 1, 2026, subdivision (f) of note 31 to
subchapter III of chapter 99 of the HTSUS is modified by deleting ``(3)
4015.12.10''.
4. The Rates of Duty 1-General column of heading 9903.91.08 is
modified by inserting ``The duty provided in the applicable subheading
+ 100%''.
Juan Millan,
Acting General Counsel, Office of the United States Trade
Representative.
[FR Doc. 2024-29462 Filed 12-13-24; 8:45 am]
BILLING CODE 3390-F4-P
