[Federal Register Volume 84, Number 94 (Wednesday, May 15, 2019)]
[Notices]
[Pages 21892-21893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09990]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Implementing Modification to 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 implementing modification.
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SUMMARY: In a notice published on May 9, 2019 (May 9 Notice), the U.S.
Trade Representative (Trade Representative) increased the rate of
additional duty from 10 percent to 25 percent for the products of China
covered by the September 2018 action that are (i) entered for
consumption, or withdrawn from warehouse for consumption, on or after
12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to
the United States on or after May 10, 2019. This notice provides that
products of China that are covered by the September 2018 action and
that were exported to the United States prior to May 10, 2019, are not
subject to the additional duty of 25 percent, as long as such products
are entered into the United States prior to June 1, 2019. Such products
remain subject to the additional duty of 10 percent for this interim
period.
DATES: HTSUS heading 9903.88.09, which is set out in the Annex to this
notice, applies to products of China covered by the September 2018
action that were exported before May 10, 2019, and entered into the
United States on or after May 10, 2019, and before June 1, 2019.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
contact Associate General Counsel Arthur Tsao or Assistant General
Counsel Juli Schwartz, or Director of Industrial Goods Justin Hoffmann
at (202) 395-5725. For questions on customs classification or
implementation of additional duties on products covered in the
supplemental action, contact [email protected].
SUPPLEMENTARY INFORMATION: In the May 9 Notice, the Trade
Representative modified the action being taken in the Section 301
investigation by increasing the rate of additional duty from 10 percent
to 25 percent for the products of China covered by the September 2018
action in this investigation. The ``September 2018 action'' refers to
the additional duties on products of China with an annual trade value
of approximately $200 billion, published at 83 FR 47974 (Sep. 21,
2018), as subsequently modified by the notice published at 83 FR 49153
(September 28, 2018). The increase in the rate of additional duty
became effective on May 10, 2019.
Under this implementing modification, and as specified in the Annex
to this notice, products of China that are covered by the September
2018 action that were exported prior to May 10, 2019, are not subject
to the additional duty of 25 percent as long as such products are
entered into the United States prior to June 1, 2019. Such products
remain subject to the additional duty of 10 percent for a transitional
period of time before June 1, 2019. The covered products of China that
are entered into the United States on or after June 1, 2019, are
subject to the 25 percent rate of additional duty.
To distinguish between covered products of China subject to the 10
percent rate of additional duty from those subject to the 25 percent
rate, the Annex to this notice creates a new heading in Chapter 99 of
the HTSUS (9903.88.09) for products of China covered by the September
2018 action that were exported before May 10, 2019, and entered into
the United States on or after May 10, 2019 and before June 1, 2019.
HTSUS heading 9903.88.09 is limited to covered products of China
entered into the United States during this period of time to account
for customs enforcement factors and the average transit time between
China and the United States by sea.
The products of China covered by the September 2018 action that are
admitted into a foreign-trade zone (FTZ) in ``Privileged Foreign''
status shall retain that status consistent with 19 CFR 146.41(e) and
will be subject, at the time of entry for consumption, to the
additional duty rate that was in effect at the time of FTZ admission of
said product.
U.S. Customs and Border Protection will issue instructions on entry
guidance and implementation.
Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
Annex
Effective with respect to goods: (1) Exported to the United
States before May 10, 2019; and (2) entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on May 10, 2019, and entered for consumption,
or withdrawn from warehouse for consumption, before 12:01 a.m.
eastern daylight time on June 1, 2019, subchapter III of chapter 99
of the Harmonized Tariff Schedule of the United States (HTSUS) is
modified:
1. By inserting the following new heading 9903.88.09 in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', and ``Rates of Duty 1-General'', respectively:
[[Page 21893]]
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Rates of duty
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Heading/ subheading Article description 1
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General Special
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``9903.88.09.................... Articles the product of The duty provided
China, as provided for in the applicable
in U.S. note 20(l) to subheading + 10%''.
this subchapter and as
provided for in the
subheadings enumerated
in U.S. notes 20(f) or
20(g) to this
subchapter, if exported
to the United States
before May 10, 2019 and
entered for consumption,
or withdrawn from
warehouse for
consumption, on or after
May 10, 2019, and before
June 1, 2019.
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2. by inserting the following new U.S. note 20(l) to subchapter
III of chapter 99 in numerical sequence:
``(l) For the purposes of heading 9903.88.09, products of China,
as provided for in this note, shall be subject to an additional 10
percent ad valorem rate of duty. The products of China that are
subject to an additional 10 percent ad valorem rate of duty under
heading 9903.88.09 are products of China that are classified in the
subheadings enumerated in U.S. notes 20(f) or 20(g) to subchapter
III. All products of China that are classified in the subheadings
enumerated in U.S. notes 20(f) or 20(g) to subchapter III are
subject to the additional 10 percent ad valorem rate of duty imposed
by heading 9903.88.09.
For the purposes of heading 9903.88.09, the products of China
that are subject to an additional 10 percent ad valorem rate of duty
are products that are: (1) Exported to the United States before May
10, 2019; and (2) entered for consumption, or withdrawn from
warehouse for consumption on or after May 10, 2019, and before June
1, 2019.
Notwithstanding U.S. note 1 to this subchapter, all products of
China that are subject to the additional 10 percent ad valorem rate
of duty imposed by heading 9903.88.09 shall also be subject to the
general rates of duty imposed on products of China classified in the
subheadings enumerated in U.S. notes 20(f) or 20(g) to subchapter
III.
Products of China that are classified in the subheadings
enumerated in U.S. note 20(f) or 20(g) to subchapter III and that
are eligible for special tariff treatment under general note 3(c)(i)
to the tariff schedule, or that are eligible for temporary duty
exemptions or reductions under subchapter II to chapter 99, shall be
subject to the additional 10 percent ad valorem rate of duty imposed
by heading 9903.88.09.
The additional duties imposed by heading 9903.88.09 do not apply
to goods for which entry is properly claimed under a provision of
chapter 98 of the HTSUS, except for goods entered under subheadings
9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For
subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional
duties apply to the value of repairs, alterations, or processing
performed abroad, as described in the applicable subheading. For
heading 9802.00.80, the additional duties apply to the value of the
article less the cost or value of such products of the United
States, as described in heading 9802.00.80.
Products of China that are provided for in heading 9903.88.09
and classified in one of the subheadings enumerated in U.S. notes
20(f) or 20(g) to subchapter III shall continue to be subject to
antidumping, countervailing, or other duties, fees, exactions and
charges that apply to such products, as well as to the additional 10
percent ad valorem rate of duty imposed by heading 9903.88.09.''
[FR Doc. 2019-09990 Filed 5-14-19; 8:45 am]
BILLING CODE 3290-F9-P