[Federal Register Volume 84, Number 43 (Tuesday, March 5, 2019)]
[Notices]
[Pages 7966-7967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03935]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Modification of Section 301 Action: China's Acts,
Policies, and Practices Related to Technology Transfer, Intellectual
Property, and Innovation
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of modification of action.
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SUMMARY: In accordance with the direction of the President, the U.S.
Trade Representative (Trade Representative) has determined to modify
the action being taken in this Section 301 investigation by postponing
the date on which the rate of the additional duties will increase to 25
percent for the products of China covered by the September 2018 Action
in this investigation. The rate of additional duty for the products
covered by the September 2018 action will remain at 10 percent until
further notice.
DATES: The rate of additional duty will remain at 10 percent with
respect to products covered by the September 2018 action until further
notice.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
contact Associate General Counsel Arthur Tsao, Assistant General
Counsel Megan Grimball, or Director of Industrial Goods Justin Hoffmann
at (202) 395-5725. For questions on customs classification or
implementation of additional duties on products covered by the
September 2018 action, contact [email protected].
SUPPLEMENTARY INFORMATION:
A. September 2018 Action
For background on the proceedings in this investigation, please see
the prior notices issued in the investigation, including 82 FR 40213
(August 23, 2017), 83 FR 14906 (April 6, 2018), 83 FR 28710 (June 20,
2018), 83 FR 33608 (July 17, 2018), 83 FR 38760 (August 7, 2018), and
83 FR 40823 (August 16, 2018).
In a notice published on September 21, 2018 (83 FR 47974), the
Trade Representative, at the direction of the President, announced a
determination to modify the action being taken in the investigation by
imposing additional duties on products of China with an annual trade
value of approximately $200 billion. The rate of additional duties
initially was 10 percent. Those additional duties were effective
starting on September 24, 2018, and currently are in effect. Under
Annex B of the September 21 notice, the rate of additional duty was set
to increase to 25 percent on January 1, 2019. In the September 21
notice, the Trade Representative stated that he would continue to
consider the actions taken in this investigation, and if further
modifications were appropriate, he would take into account the
extensive public comments and testimony previously provided in response
to the notices published on July 17, 2018 (83 FR 33608) and August 7,
2018 (83 FR 38760).
On September 28, 2018 (83 FR 49153), the Trade Representative
issued a conforming amendment and modification of the September 21
action. The current notice refers to the September 21 action, as
modified by the September 28 notice, as the ``September 2018 action.''
On December 19, 2018 (83 FR 65198), in accordance with the
direction of the President, the Trade Representative determined to
modify the September 2018 action by postponing until March 2, 2019, the
increase in the rate of the additional duty to 25 percent. The Annex to
the December 19 notice, which superseded Annex B to the September 21
notice, amended the HTSUS to reflect this postponement of the increase
in the rate of duty applicable to the September 2018 action.
B. Determination To Further Modify September 2018 Action
The United States is engaging with China with the goal of obtaining
the elimination of the acts, policies, and practices covered in the
investigation. The leaders of the United States and China met on
December 1, 2018, and agreed to hold negotiations on a range of issues,
including those covered in this Section 301 investigation. See https://
www.whitehouse.gov/briefings-statements/statement-press-secretary-
regarding-presidents-working-dinner-
[[Page 7967]]
china/. Since the meeting on December 1, the United States and China
have engaged in additional rounds of negotiation on these issues. In
light of progress in discussions with China, on February 24, 2019, the
President directed the Trade Representative to postpone the increase in
tariffs scheduled for March 2, 2019.
Section 301(b) of the Trade Act of 1974, as amended (Trade Act),
provides that the Trade Representative ``shall take all appropriate and
feasible action authorized under [Section 301(c)] to obtain the
elimination of [the] act, policy, or practice [under investigation].''
Section 307(a)(1) of the Trade Act authorizes the Trade Representative
to modify or terminate any action being taken under Section 301,
subject to the specific direction, if any, of the President if ``the
burden or restriction on United States 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)] of this title and is no longer appropriate.'' In light of
progress of the additional rounds of negotiations since December 2018,
and at the direction of the President, the Trade Representative has
determined that it no longer is appropriate for the rate of duty under
the September 2018 action to increase to 25 percent on March 2, 2019,
and that the rate of duty under the September 2018 action will remain
at 10 percent until further notice.
The Trade Representative's decision to modify the September 2018
action takes into account the extensive public comments and testimony,
as well as advice from advisory committees, concerning the actions
proposed in the notices issued in advance of the September 2018 action
(83 FR 33608 and 83 FR 38760). Those notices, among other things,
requested comments on whether the rate of additional duties should be
10 percent or 25 percent. The Trade Representative's decision also
reflects the advice of the interagency Section 301 Committee.
To effectuate the Trade Representative's decision, Annex B of the
September 21 notice (83 FR 47974) and the Annex to the December 19
notice (83 FR 65198), hereby are rescinded. In accordance with Annex A
of the September 21 notice, the rate of duty under the September 2018
action will remain at 10 percent until further notice.
Stephen P. Vaughn,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2019-03935 Filed 3-4-19; 8:45 am]
BILLING CODE 3290-F9-P