[Federal Register Volume 63, Number 64 (Friday, April 3, 1998)]
[Notices]
[Pages 16607-16608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8773]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-116]


Determination of Action Under Section 301(b): Honduran Protection 
of Intellectual Property Rights

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of determinations and action.

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SUMMARY: The United States Trade Representative (``USTR''), pursuant to 
sections 304(a)(1) (A) and 301 (b) of the Trade Act of 1974 (the 
``Trade Act''), has determined that based on the failure of the 
Government of Honduras to provide adequate and effective protection of 
intellectual property rights, certain acts, policies, and practices of 
Honduras with respect to the protection of intellectual property rights 
are unreasonable and burden or restrict United States commerce. 
Pursuant to sections 304(a)(1)(B), 301(b) and 301(c) of the Trade Act, 
the USTR has determined that the appropriate action to obtain the 
elimination of such acts, policies, and practices is to suspend the 
preferential treatment accorded under the Generalized System of 
Preferences (GSP) and the Caribbean Basin Initiative (CBI) programs to 
those products of

[[Page 16608]]

Honduras listed in Annex I of this notice.

EFFECTIVE DATES: The USTR's determinations as to actionability and the 
specific action to be taken was made on March 16, 1998. The suspension 
of GSP and CBI benefits with respect to the products of Honduras listed 
in Annex I of this notice will be effective with respect to goods 
entered, or withdrawn from warehouse for consumption, on or after April 
20, 1998.

FOR FURTHER INFORMATION CONTACT: Sue Cronin, Office of Western 
Hemisphere, (202) 296-5190, David Morrissy, Office of Trade and 
Development, Office of the United States Trade Representative, (202) 
395-6971, or William Busis, Office of the General Counsel, Office of 
the United States Trade Representative, (202) 395-3150.

SUPPLEMENTARY INFORMATION: On October 31, 1997, the USTR initiated an 
investigation under section 302(b) of the Trade Act with regard to 
acts, policies, and practices of the Government of Honduras with 
respect to the protection of intellectual property rights, including 
the failure to provide adequate and effective copyright protection and 
enforcement of rights of copyright owners, resulting in, for example, 
the wide-spread unauthorized broadcasting in Honduras of pirated videos 
and the rebroadcasting of U.S. satellite-carried programming. The USTR 
proposed to determine that these acts, policies and practices are 
actionable under section 301(b) and that the appropriate response would 
be a partial suspension of tariff preference benefits accorded to 
Honduras under the GSP and CBI programs. See 62 FR 60299 (November 7, 
1997). The notice set forth a list of articles of Honduras which could 
be subject to the suspension of tariff preference benefits and invited 
interested persons to submit written comments by December 10, 1997 and 
to participate in a public hearing concerning the proposed 
determinations and action. The scheduled public hearing was 
subsequently canceled due to a lack of public response. See 62 FR 64039 
(December 3, 1997).
    In response to the November 7, 1997, Federal Register notice, the 
USTR received comments regarding the failure of Honduras to provide 
adequate and effective copyright protection and enforcement of rights 
of copyright owners, the appropriateness of the proposed determinations 
and action, and the appropriateness of suspending tariff preference 
benefits with respect to particular products listed in the annex of the 
November 7 notice.

Determinations

    The United States has consulted repeatedly with the Government of 
Honduras regarding the matters under investigation. While Honduras has 
established a television regulatory authority and has initiated 
criminal actions against two stations engaged in broadcast piracy, 
blatant broadcast piracy continues and the failure of Honduras to 
protect intellectual property rights has harmed U.S. copyright-based 
industries. Accordingly, on the basis of the investigation initiated 
under Section 302 of the Trade Act, the comments received, and the 
consultations, the USTR has determined pursuant to sections 301(b)(1) 
and 304(a)(1)(A)(ii) of the Trade Act that the Government of Honduras 
fails to provide adequate and effective protection of intellectual 
property rights and the acts, policies or practices of Honduras under 
investigation are unreasonable and burden or restrict U.S. commerce.
    Because the determination of the USTR under Section 304(a)(1)(A) of 
the Trade Act is affirmative, the USTR must determine the appropriate 
and feasible action to take under Section 301(b) and (c). In a case in 
which the act, policy, or practice under investigation also fails to 
meet the eligibility requirements for receiving preferential treatment 
under the GSP program or CBI program, Section 301(c)(1)(C) of the Trade 
Act provides that the USTR may withdraw, limit or suspend such 
preferential treatment. Both the GSP and CBI programs include 
eligibility requirements concerning the extent to which the foreign 
country provides adequate and effective protection of intellectual 
property rights.
    The USTR has determined pursuant to sections 304(a)(1)(B), 
301(b)(2), and 301(c)(1)(C) of the Trade Act that the appropriate and 
feasible action in this case is to suspend the duty-free GSP and CBI 
treatment accorded to the products of Honduras covered in the tariff 
subheadings of the Harmonized Tariff Schedule of the United States 
(HTS) listed in Annex I to this notice. Those products are cucumbers 
provided for in HTS subheadings 0707.00.20 and 0707.00.40, watermelons 
provided for in HTS subheading 0807.11.30, and cigars, cheroots, and 
cigarillos provided for in HTS subheadings 2402.10.30 and 2402.10.60. 
Such products of Honduras will be subject to ordinary, most favored 
nation rates of duty effective April 20, 1998.
Irving A. Williamson,
Chairman, Section 301 Committee.

Annex I

    The Harmonized Tariff Schedule of the United States (``HTS'') is 
modified as set forth below with respect to articles entered, or 
withdrawn from warehouse for consumption, on or after the effective 
dates specified for the enumerated actions:
    1. With respect to articles both: (i) imported on or after 
January 1, 1976, and (ii) entered, or withdrawn from warehouse for 
consumption, on or after April 20, 1998.
    (a). General note 4(d) to the HTS is modified by adding, in 
numerical sequence, the following subheadings and the country set 
out opposite them:

0707.00.20  Honduras
0707.00.40  Honduras
0807.11.30  Honduras

    (b). For the following subheadings, the Rates of Duty 1-Special 
subcolumn is modified by deleting the symbol ``A'' and inserting an 
``A*'' in lieu thereof:

0707.00.20
0707.00.40
0807.11.30
    2. With respect to articles entered, or withdrawn from warehouse 
for consumption, on or after April 20, 1998.
    (a). General note 7 to the HTS is modified:
    (i). by deleting subdivision 7(d)(iv) and inserting the 
following new subdivision in lieu thereof:
    ``(iv) Articles the product of Honduras classifiable in the 
following subheadings:

0707.00.20
0707.00.40
0807.11.30
2402.10.30
2402.10.60''

    (ii). by adding a new subdivision 7(g) as follows:
    ``(g) any agricultural product of chapters 2 through 52, 
inclusive, that is subject to a tariff-rate quota, if entered in a 
quantity in excess of the in-quota quantity for such product.''
    (b). For the following subheadings, the Rates of Duty 1-Special 
subcolumn is modified by deleting the symbol ``E'' and inserting an 
``E*'' in lieu thereof:

0707.00.20
0707.00.40
0807.11.30
2402.10.30
2402.10.60

[FR Doc. 98-8773 Filed 4-2-98; 8:45 am]
BILLING CODE 3190-01-M