[Federal Register Volume 60, Number 3 (Thursday, January 5, 1995)]
[Notices]
[Pages 1829-1843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-261]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-92]
Extension of 301 Investigation of the People's Republic of
China's Protection of Intellectual Property and Provision of Market
Access to Persons Who Rely on Intellectual Property Protection;
Proposed Determinations; Request for Public Comment; and Notice of
Public Hearing
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of determination under section 304(a)(3)(b) of the Trade
Act of 1974, as amended (Trade Act), 19 U.S.C. 2414(a)(3)(B), to extend
the investigation of the acts, policies and practices of the Government
of the People's Republic of China (China) on the enforcement of
intellectual property rights and the provision of market access to
persons who rely on intellectual property protection; notice of
proposed determination pursuant to section 304(a)(1) of the Trade Act,
19 U.S.C. 2414; request for public comment pursuant to section 304(b)
of the Trade Act on the proposed determinations; notice of public
hearing.
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SUMMARY: Pursuant to section 304(a)(3)(B) of the Trade Act, the United
States Trade Representative (USTR) has determined to extend the
investigation initiated under section 302(b)(2)(A) of the Trade Act of
certain acts, policies and practices of China that deny adequate and
effective protection of intellectual property rights and market access
to person who rely on intellectual property protection. The USTR is
seeking public comment concerning a proposed determination that certain
acts, policies and practices of China with respect to its protection of
intellectual property and provision of market access to persons who
rely on intellectual property protection are unreasonable and
constitute a burden or restriction on U.S. commerce. The USTR is also
seeking public comment and will hold a public hearing on January 24 and
25, 1995, regarding a determination on appropriate action under section
301 being considered in response to these acts, policies and practices.
EFFECTIVE DATE: The investigation is extended, through Saturday,
February 4, 1995. Written comments on the proposed determinations are
due by noon Monday, January 30, 1995. Requests to testify at the
hearing must be submitted by noon Friday, January 13, 1995; written
testimony is due by [[Page 1830]] noon Wednesday, January 18, 1995; and
written rebuttals are due by noon Friday, January 27, 1995.
FOR FURTHER INFORMATION CONTACT:
Questions concerning the ongoing investigation or the products under
consideration should be directed to Deborah Lehr, Director for China
and Mongolian Affairs (202) 395-5050, or Thomas Robertson, Assistant
General Counsel (202) 395-6800; questions about the public hearing,
written testimony and written comments should be directed to Sybia
Harrison, Staff Assistant to Section 301 Committee, (202) 395-3432. All
of the above persons are located at the Office of the United States
Trade Representative, 600 17th Street, NW., Washington, DC 20506.
SUPPLEMENTARY INFORMATION: On June 30, 1994, pursuant to section 302(b)
of the Trade Act, the USTR initiated an investigation of those acts,
policies and practices of China that were the basis for identification
of China as a priority foreign country (PFC) under section 182 of the
Trade Act. See 59 FR 35558 (July 12 1994). China's identification as a
PFC was primarily based on its failure to create an effective
intellectual property enforcement regime, causing rampant copyright
piracy and trademark infringement resulting in significant damage to
U.S. interests. Appropriate implementation of China's new patent law
and administrative protection program for pharmaceuticals and
agricultural chemicals was also of concern. Particular problems with
China's present enforcement regime include, among other things,
internally inconsistent laws; a lack of transparency in the enforcement
structure; a lack of protection for existing works; gaps in
responsibility in the enforcement structure; a lack of consistent
application of the laws throughout the central, provincial and local
governments; a lack of funding, training and education; conflicts of
interest; burdensome and discriminatory agency requirements that
restrict foreign access to trademark protection; overly-broad
compulsory licensing provisions; a failure of enforcement authorities
to coordinate; and the absence of an effective border control
mechanism.
China's identification as a PFC was also based on its failure to
provide fair and equitable market access for persons who rely on
intellectual property protection. The most serious market access
problems are found in the areas of audiovisual products, sound
recordings, and published written materials. Particular concerns
include a hidden system of internal quotas, a lack of transparency, a
lack of consistency in application, monopoly control over the
importation and distribution of products embodying intellectual
property, and a prohibition on the production or distribution of
products embodying intellectual property that is not related to the
content of those products.
Extension of Investigation
Numerous bilateral negotiations have been held on these issues
since the initiation of this investigation. While China has indicated
that it will take some actions to address U.S. concerns, significant
movement on a majority of the U.S. issues has not been shown. These
issues are too complex and complicated to resolve before the end of the
six-month statutory deadline for concluding this investigation.
In light of the need for further time for negotiations to resolve
these remaining issues, the USTR has determined pursuant to section
304(a)(3)(B)(i) of the Trade Act, that ``complex or complicated issues
are involved in the investigation that require additional time.'' The
investigation has thus been extended to Saturday, February 4, 1995.
Proposed Determinations and Action
If the issues which are the basis of this investigation are not
resolved, the USTR proposes to determine pursuant to section
304(a)(1)(A)(ii) of the Trade Act that acts, policies and practices of
the Chinese Government with respect to the enforcement of intellectual
property rights and the provision of market access to persons that rely
on intellectual property protection are unreasonable and constitute a
burden or restriction on U.S. commerce.
In the event the USTR makes such a determination, the USTR must
determine pursuant to section 304(a)(1)(B) what action to take in
response. The USTR proposes that, pursuant to the authority provided
under section 301(c)(1)(B) of the Trade Act, to take the following
action: To impose increased duties on certain products of China to be
drawn from the list of products set forth in the Annex to this notice.
These products represent approximately 2.5 billion dollars in U.S.
imports of Chinese-origin goods over the last quarter of 1993 and the
first three quarters of 1994. The decision on what specific products
could be subject to increased tariffs will take into consideration the
written comments provided and any written and oral testimony offered at
the public hearing.
Public Comment on Determinations and Hearing Participation
In accordance with section 304(b) of the Trade Act, the USTR
invites all interested persons to provide written comments on the
proposed determinations. With respect to the proposed trade action
under section 301, comments may address: (1) the appropriateness of
subjecting the products listed in the Annex to this notice to an
increase in duties; (2) the levels at which duties on particular
products should be set; and (3) the degree to which an increase in
duties on particular products might have an adverse effect on U.S.
consumers. Comments will be considered in recommending any
determination or action under section 301 to the USTR.
The USTR will also consider the written, oral, and rebuttal
comments submitted in the context of public hearings held pursuant to
section 304(b) of the Trade Act and in accordance with 15 CFR 2006.7
through 2006.9. The hearings will commence at 10 a.m. on Tuesday,
January 24, 1995, and continue on Wednesday, January 25, 1995, if
necessary. The hearings will be held in the Truman Room of the White
House Conference Center, 726 Jackson Place, NW., Washington, DC 20506.
Request to Testify: Interested persons wishing to testify orally at
the hearings must provide a written request to do so by noon Friday,
January 13, 1994, to Sybia Harrison, Staff Assistant to the Section 301
Committee, Office of the U.S. Trade Representative, 600 17th Street
NW., Washington DC 20506. In their request, they must provide the
following information: (1) Name, address, telephone number, and firm or
affiliation; and (2) a brief summary of their presentation. Requests
must conform to the requirements of 15 CFR 2006.8(a). After the
Chairman of the Section 301 Committee considers the request to present
oral testimony, Ms. Harrison will notify the applicant of the time of
his or her testimony. Remarks at the hearing will be limited to 5
minutes.
Written Testimony: In addition, persons presenting oral testimony
must submit their complete written testimony by noon Wednesday, January
19, 1995. In order to assure each party an opportunity to contest the
information provided by other parties, USTR will entertain rebuttal
briefs filed by any party by noon Friday, January 27, 1995. In
accordance with 15 CFR 2006.8(c), rebuttal briefs should be strictly
limited to demonstrating errors of fact or analysis not pointed out in
the briefs or hearing and should be as concise as is
possible. [[Page 1831]]
Requirements for Submissions: Written comments on the proposed
determinations under section 304 of the Trade Act, written testimony,
and rebuttal briefs must be filed in accordance with the requirements
set forth in 15 CFR 2006.8(b) and are due according to the relevant
deadlines noted above. Comments must state clearly the position taken
and describe with particularly the supporting rationale, be in English,
and be provided in twenty copies to: Chairman, Section 301 Committee,
Room 223, USTR, 600 17th St., NW., Washington, DC 20506.
Written comments, testimony, and briefs will be placed in a file
(Docket 301-92) open to public inspection pursuant to 15 CFR 2006.13,
except confidential business information exempt from public inspection
in accordance with 15 CFR 2006.15. Persons wishing to submit
confidential business information must certify in writing that such
information is confidential in accordance with 15 CFR 2006.15(b), and
such information must be clearly marked ``Business Confidential'' in a
contrasting color ink at the top of each page on each of the twenty
copies and must be accompanied by a nonconfidential summary of the
confidential information. The nonconfidential summary will be placed in
the Docket open to public inspection.
Irving A. Williamson,
Chairman, Section 301 Committee.
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[FR Doc. 95-261 Filed 1-3-95; 8:45 am]
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