[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consumption, or withdrawn from warehouse for consumption, on or after 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
                                                            ----------------------------------------------------
       Heading/ subheading           Article description                      1
                                                            -------------------------------------        2
                                                                   General            Special
----------------------------------------------------------------------------------------------------------------
``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.
----------------------------------------------------------------------------------------------------------------

    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