[Federal Register Volume 84, Number 246 (Monday, December 23, 2019)]
[Notices]
[Pages 70616-70617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27611]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Product Exclusion Extensions: 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 product exclusion extensions.
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SUMMARY: The initial set of exclusions from the additional duties
imposed in this investigation are scheduled to expire on December 28,
2019. On October 31, 2019, the U.S. Trade Representative established a
process for the public to comment on whether to
[[Page 70617]]
extend particular exclusions for up to 12 months. This notice announces
the U.S. Trade Representative's determination to extend certain
exclusions for 12 months.
DATES: The product exclusion extensions announced in this notice will
apply as of December 28, 2019 and extend for one year.
FOR FURTHER INFORMATION CONTACT: For general questions about this
notice, contact Assistant General Counsels Philip Butler or Benjamin
Allen, or Director of Industrial Goods Justin Hoffmann, at (202) 395-
5725. For specific questions on customs classification or
implementation of the product exclusions identified in the Annex to
this notice, contact [email protected].
SUPPLEMENTARY INFORMATION:
A. Background
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 32181 (July 11, 2018), 83 FR 67463 (December 28, 2018), 84
FR 11152 (March 25, 2019), 84 FR 16310 (April 18, 2019), 84 FR 21389
(May 14, 2019), 84 FR 25895 (June 4, 2019), 84 FR 32821 (July 9, 2019),
84 FR 46212 (September 3, 2019), 84 FR 49564 (September 20, 2019), 84
FR 52567 (October 2, 2019), and 84 FR 58427 (October 31, 2019).
Effective July 6, 2018, the U.S. Trade Representative imposed
additional 25 percent duties on goods of China classified in 818 8-
digit subheadings of the Harmonized Tariff Schedule of the United
States (HTSUS), with an approximate annual trade value of $34 billion.
See 83 FR 28710 (the $34 billion action). The U.S. Trade
Representative's determination included a decision to establish a
process by which U.S. stakeholders could request exclusion of
particular products classified within an 8-digit HTSUS subheading
covered by the $34 billion action from the additional duties. The U.S.
Trade Representative issued a notice setting out the process for the
product exclusions, and opened a public docket. See 83 FR 32181 (the
July 11 notice).
In December 2018, the U.S. Trade Representative granted an initial
set of exclusion requests, which are scheduled to expire on December
28, 2019. See 83 FR 67463 (the December 28 notice). On October 31,
2019, the U.S. Trade Representative invited the public to comment on
whether to extend, by up to twelve months, particular exclusions
granted in the December 28 notice. See 84 FR 58427 (the October 31
notice).
Under the October 31 notice, commenters were asked to address
whether the particular product and/or a comparable product is available
from sources in the United States and/or in third countries; any
changes in the global supply chain since July 2018 with respect to the
particular product, or any other relevant industry developments; and
efforts, if any, importers or U.S. purchasers have undertaken since
July 2018 to source the product from the United States or third
countries.
In addition, commenters who were importers and/or purchasers of the
products covered by an exclusion were asked to provide information
regarding their efforts since July 2018 to source the product from the
United States or third countries; the value and quantity of the
Chinese-origin product covered by the specific exclusion request
purchased in 2018, the first half of 2018, and the first half of 2019,
and whether these purchases are from a related company; whether Chinese
suppliers have lowered their prices for products covered by the
exclusion following the imposition of duties; the value and quantity of
the product covered by the exclusion purchased from domestic and third
country sources in 2018, the first half of 2018 and the first half of
2019; the commenter's gross revenue for 2018, the first half of 2018,
and the first half of 2019; whether the Chinese-origin product of
concern is sold as a final product or as an input; whether the
imposition of duties on the products covered by the exclusion will
result in severe economic harm to the commenter or other U.S.
interests; and any additional information in support or in opposition
of the extending the exclusion.
The October 31 notice required the submission of comments no later
than November 30, 2019.
B. Determination To Extend Certain Exclusions
Based on the information received in response to the October 31
notice, an evaluation of the factors set out in the July 11 notice and
October 31 notice, which are summarized above, and in accordance with
the advice of the interagency Section 301 Committee, the U.S. Trade
Representative has determined, pursuant to sections 301(b), 301(c), and
307(a) of the Trade Act of 1974, as amended, to extend for 12 months
certain product exclusions covered by the December 28 notice. As set
out in the Annex to this notice, the U.S. Trade Representative has
determined to extend the following exclusions under U.S. note 20(h) to
subchapter III of chapter 99 of the HTSUS: (2), (7), (11), (29), (30),
and (31). U.S. Customs and Border Protection will issue instructions on
entry guidance and implementation.
In accordance with the July 11 notice, the exclusions are available
for any product that meets the description in the Annex, regardless of
whether the importer filed an exclusion request. Further, the scope of
each exclusion is governed by the scope of the 10-digit HTSUS headings
and product descriptions in the Annex to this notice, and not by the
product descriptions set out in any particular request for exclusion.
Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
Annex
The U.S. Trade Representative has determined to extend the
following exclusions granted under the December 28, 2018 notice under
heading 9903.88.05 and U.S. note 20(h) to subchapter III of chapter 99
of the HTSUS:
(2) 8418.69.0120
(7) 8525.60.1010
(11) Roller machines with dies for embossing paper, manually powered
(described in statistical reporting number 8420.10.9080)
(29) Angle cock handle assemblies, of iron and steel, each measuring
11.43 cm by 21.59 cm by 5.08 cm and weighing 0.748 kg (described in
statistical reporting number 8481.90.9040)
(30) Radiation therapy systems, each encased by steel-based structural
shell with gantry cover comprising three pairs of plastics-based panels
(described in statistical reporting number 9022.14.0000)
(31) Thermostats designed for air conditioning or heating systems, not
designed to connect to the internet, the foregoing designed for wall
mounting (described in statistical reporting number 9032.10.0030)
With respect to goods entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m. eastern daylight time
on July 6, 2018, and before December 28, 2020, the additional duties
provided for in heading 9903.88.01 shall not apply to products which
are provided for in heading 9903.88.05 and U.S. notes 20(h)(2),
20(h)(7), 20(h)(11), 20(h)(29), 20(h)(30) and 20(h)(31) to subchapter
III of chapter 99 of the HTSUS.
[FR Doc. 2019-27611 Filed 12-20-19; 8:45 am]
BILLING CODE 3290-F0-P