[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Notices]
[Pages 72102-72111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28088]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2019-0024]


Request for Comments Concerning the Extension of Particular 
Exclusions Granted Under the March 2019 Product Exclusion Notice From 
the $34 Billion Action Pursuant to Section 301: China's Acts, Policies, 
and Practices Related to Technology Transfer, Intellectual Property, 
and Innovation

AGENCY: Office of the United States Trade Representative.

ACTION: Notice and request for comments.

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SUMMARY: Effective July 6, 2018, the U.S. Trade Representative imposed 
additional duties on goods of China with an annual trade value of 
approximately $34 billion as part of the action in the Section 301 
investigation of China's acts, policies, and practices related to 
technology transfer, intellectual property, and innovation. The U.S. 
Trade Representative initiated the exclusion process in July 2018 and 
granted multiple sets of exclusions. The second set of exclusions was 
granted in March 2019, and are scheduled to expire on March 25, 2020. 
The U.S. Trade Representative has decided to consider a possible 
extension for up to 12 months of particular exclusions granted in March 
2019. The Office of the U.S. Trade Representative (USTR) invites public 
comment on whether to extend particular exclusions.

DATES: January 15, 2020 at 12:01 a.m. ET: The docket (USTR-2019-0024) 
will open for submitting comments on the possible extension of 
particular exclusions.
    February 15, 2020 at 11:59 p.m. ET: To be assured of consideration, 
submit written comments by February 15, 2020.

ADDRESSES: Submit public comments through the Federal eRulemaking 
Portal: https://www.regulations.gov. The docket number is USTR-2019-
0024. USTR strongly encourages all commenters to use Form A in 
submitting comments. If applicable, Form B (which requests Business 
Confidential Information (BCI)), along with a copy of the corresponding 
Form A, must be submitted via email at [email protected]. 
See the submission instructions below.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
contact USTR Assistant General Counsels Philip Butler or Benjamin Allen 
at (202) 395-5725.

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 40823 (August 16, 2018), 83 FR 47974 (September 21, 2018), 
83 FR 65198 (December 19, 2018), 84 FR 7966 (March 5, 2019), 84 FR 
20459 (May 9, 2019), 84 FR 43304 (August 20, 2019), and 84 FR 45821 
(August 30, 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 U.S. Trade Representative's determination included 
a decision to establish a process by which U.S. stakeholders can 
request exclusion of particular products classified within an 8-digit 
HTSUS subheading covered by the $34 billion

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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).
    The July 11 notice required submission of requests for exclusion 
from the $34 billion action no later than October 9, 2018, and noted 
that the U.S. Trade Representative periodically would announce 
decisions. The U.S. Trade Representative granted multiple sets of 
exclusions. The second set of exclusions was granted in March 2019, and 
are scheduled to expire on March 25, 2020. See 84 FR 11152 (March 25, 
2019) (March 2019 notice).

B. Possible Extensions of Particular Product Exclusions

    The U.S. Trade Representative has decided to consider a possible 
extension for up to 12 months of particular exclusions granted in the 
March 2019 notice. Accordingly, USTR invites public comments on whether 
to extend particular exclusions granted in the March 2019 notice. At 
this time, USTR is not considering comments concerning possible 
extensions of exclusions granted under any other product exclusion 
notice.
    USTR will evaluate the possible extension of each exclusion on a 
case-by-case basis. The focus of the evaluation will be whether, 
despite the first imposition of these additional duties in July 2018, 
the particular product remains available only from China. In addressing 
this factor, commenters should address specifically:
     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.
     The efforts, if any, the importers or U.S. purchasers have 
undertaken since July 2018 to source the product from the United States 
or third countries.
    In addition, USTR will continue to consider whether the imposition 
of additional duties on the products covered by the exclusion will 
result in severe economic harm to the commenter or other U.S. 
interests.
    USTR strongly encourages that commenters complete Form A (which 
will be posted on USTR's website by the time the docket opens) and 
submit the completed Form A to https://www.regulations.gov. The docket 
number is USTR-2019-0024. USTR will post completed Form A's on the 
public docket.
    In addition to submitting Form A, commenters who are importers and/
or purchasers of the products covered by the exclusion also should 
complete Form B (which will be posted on USTR's website by the time the 
docket opens) and submit it, along with a copy of their completed Form 
A, via email at [email protected]. Form A must be 
submitted via email with Form B and submitted as a single document 
(without Form B) to docket USTR-2019-0024 at https://www.regulations.gov.
    Form B requests BCI information, and will not be posted on the 
public docket. To facilitate advance preparation of submissions, 
facsimiles of Forms A and B are annexed to this notice and will be 
available electronically at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china/34-billion-trade-action.
    Set forth below is a summary of the information to be entered on 
Form A:
     Contact information, including the full legal name of the 
organization making the comment, whether the commenter is a third party 
(e.g., law firm, trade association, or customs broker) submitting on 
behalf of an organization or industry, and the name of the third party 
organization, if applicable.
     The publication date of the Federal Register notice 
containing the exclusion on which you are commenting. Since USTR at 
this time only is considering exclusions granted by the March 2019 
notice, this field must specify March 25, 2019.
     The full article description for the exclusion you are 
commenting on and the 10-digit code, as provided in the Federal 
Register notice granting the exclusion. Please indicate if the 
exclusion is a 10-digit HTSUS code (covering all products under a 
single 10-digit HTSUS number).
     Whether the product or products covered by the exclusion 
are subject to an antidumping or countervailing duty order issued by 
the U.S. Department of Commerce.
     Whether you support or oppose extending the exclusion and 
an explanation of your rationale. Commenters must provide a public 
version of their rationale, even if the commenter also is submitting a 
Form B with more detailed, confidential information.
     Whether the products covered by the exclusion or 
comparable products are available from sources in the U.S. or in third 
countries. Please include information concerning any changes in the 
global supply chain since July 2018 with respect to the particular 
product.
     Whether the commenter will be submitting Form B.
    As indicated above, information submitted on Form B will not be 
publically available. Form B requires commenters who are importers and/
or purchasers of the products covered by the exclusion to provide the 
following information:
     The efforts you have undertaken 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. Whether these purchases are 
from a related company, and if so, the name of and relationship to the 
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.
     If applicable, 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.
     Any additional information in support or in opposition of 
the extending the exclusion.
    Commenters also may provide any other information or data that they 
consider relevant.

C. Submission Instructions

    To be assured of consideration, you must submit your comment 
between the opening of the docket on January 15, 2020, and the February 
15, 2020 submission deadline. By submitting a comment, you are 
certifying that the information provided is complete and correct to the 
best of your knowledge.

D. Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (PRA) and its implementing regulations, USTR submitted a 
request to the Office of Management and Budget (OMB) for emergency 
review and clearance of this information collection request (ICR) 
titled 301 Exclusion Requests. OMB assigned control number 0350-0015.
    USTR issued notice and requested comments regarding its intent to 
seek

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approval of a three-year extension of the control number for the 
information request on August 22, 2019 and November 1, 2019. 84 FR 
43853, 84 FR 58802. OMB currently is reviewing USTR's submission for a 
three-year extension and has informed USTR that the control number is 
valid during the pendency of its review.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
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[FR Doc. 2019-28088 Filed 12-27-19; 8:45 am]
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