[Federal Register Volume 85, Number 28 (Tuesday, February 11, 2020)]
[Notices]
[Pages 7816-7819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02684]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusions and Amendments: 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 exclusions and amendments.

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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's determination included a decision to establish a 
product exclusion process. The U.S. Trade Representative initiated the 
exclusion process in July 2018, and stakeholders have submitted 
requests for the exclusion of specific products. In December 2018, and 
March, April, May, June, July, September, October, and December 2019, 
the U.S. Trade Representative granted exclusion requests. This notice 
announces the U.S. Trade Representative's determination to grant 
additional exclusions, as specified in the Annex to this notice, and 
makes amendments to certain notes in the Harmonized Tariff Schedule of 
the United States (HTSUS). The U.S. Trade Representative will continue 
to issue decisions as necessary.

DATES: The product exclusions will apply as of the July 6, 2018 
effective date of the $34 billion action, and will extend to October 1, 
2020 at 11:59 p.m. EDT. The amendments announced in

[[Page 7817]]

this notice are retroactive to the date the original exclusions were 
published and do not further extend the period for the original 
exclusions. U.S. Customs and Border Protection will issue instructions 
on entry guidance and implementation.

FOR FURTHER INFORMATION CONTACT: For general questions about this 
notice, contact Assistant General Counsel Philip Butler 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 33608 (July 17, 2018), 83 FR 38760 (August 7, 2018), 83 FR 
40823 (August 16, 2018), 83 FR 47974 (September 21, 2018), 83 FR 65198 
(December 19, 2018), 83 FR 67463 (December 28, 2018), 84 FR 7966 (March 
5, 2019), 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 49564 (September 20, 2019), 84 FR 52567 (October 
2, 2019), and 84 FR 69016 (December 17, 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 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 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).
    Under the July 11 notice, requests for exclusion had to identify 
the product subject to the request in terms of the physical 
characteristics that distinguish the product from other products within 
the relevant 8-digit subheading covered by the $34 billion action. 
Requestors also had to provide the 10-digit subheading of the HTSUS 
most applicable to the particular product requested for exclusion, and 
could submit information on the ability of U.S. Customs and Border 
Protection to administer the requested exclusion. Requestors were asked 
to provide the quantity and value of the Chinese-origin product that 
the requestor purchased in the last three years. With regard to the 
rationale for the requested exclusion, requests had to address the 
following factors:
     Whether the particular product is available only from 
China and specifically whether the particular product and/or a 
comparable product is available from sources in the United States and/
or third countries.
     Whether the imposition of additional duties on the 
particular product would cause severe economic harm to the requestor or 
other U.S. interests.
     Whether the particular product is strategically important 
or related to ``Made in China 2025'' or other Chinese industrial 
programs.
    The July 11 notice stated that the U.S. Trade Representative would 
take into account whether an exclusion would undermine the objective of 
the Section 301 investigation.
    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. In December 2018, the U.S. Trade Representative granted an 
initial set of exclusion requests. See 83 FR 67463. The U.S. Trade 
Representative granted additional exclusions in March, April, May, 
June, July, September, October, and December 2019. See 84 FR 11152, 84 
FR 16310, 84 FR 21389, 84 FR 25895, 84 FR 32821, 84 FR 49564, 84 FR 
52567 and 84 FR 69016.

B. Determination To Grant Certain Exclusions

    Based on the evaluation of the factors set out in the July 11 
notice, which are summarized above, pursuant to sections 301(b), 
301(c), and 307(a) of the Trade Act of 1974, as amended, and in 
accordance with the advice of the interagency Section 301 Committee, 
the U.S. Trade Representative has determined to grant the product 
exclusions set out in the Annex to this notice. The U.S. Trade 
Representative's determination also takes into account advice from 
advisory committees and any public comments on the pertinent exclusion 
request.
    Exclusions from the duties have been established in two different 
formats: (1) As an exclusion for an existing 10-digit subheading from 
within an 8-digit subheading covered by the $34 billion action, or (2) 
as an exclusion reflected in specially prepared product descriptions. 
The exclusions announced in this notice take the form of four specially 
prepared product descriptions.
    In accordance with the July 11 notice, the exclusions are available 
for any products that meet the descriptions in the Annex, regardless of 
whether the importer filed an exclusion request. Furthermore, the scope 
of the exclusions are governed by the scope of the 10-digit HTSUS 
subheadings and product descriptions in the Annex, and not by the 
product descriptions set out in any particular request for exclusion.

C. Amendments to Certain Exclusions

    The Annex also makes technical amendments to certain notes in the 
HTSUS. Subparagraphs B(1-26) clarify periodic revisions in U.S. notes 
20(i)(6-7), 20(m)(16-18), 20(m)(27), 20(n)(13-27), 20(n)(30), 20(q)(19-
21), and 20(x)(20) to subchapter III of chapter 99 of the HTSUS, as set 
out in the Annexes of the notices published at 84 FR 11153 (March 25, 
2019), 84 FR 25895 (June 4, 2019), 84 FR 32821 (July 9, 2019), 84 FR 
49564 (September 20, 2019), and 84 FR 52567 (October 2, 2019).
    In order to correct typographical or other ministerial errors, 
subparagraphs B(27-29) of the Annex make amendments to U.S. notes 
20(n)(86), 20(q)(102), and 20(q)(170) to subchapter III of chapter 99 
of the HTSUS, as set out in the Annexes of the notices published at 84 
FR 32821 (July 9, 2019) and 84 FR 49564 (September 20, 2019).
    The U.S. Trade Representative will continue to issue determinations 
on a periodic basis as needed.

Joseph Barloon,
General Counsel,
    Office of the U.S. Trade Representative.

Annex

    A. Effective 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 October 2, 2020, U.S. 
note 20(x) to subchapter III of chapter 99 of the Harmonized Tariff 
Schedule of the United States (HTSUS) is modified by inserting the 
following exclusions in numerical order after exclusion (93):
    (94) Centrifugal pumps, submersible, designed for use in artificial 
lift systems for extracting oil and gas (described in statistical 
reporting number 8413.70.2004)
    (95) Pistons and housings for hydraulic fluid power pumps of the 
type used in power lawn mowers (described in statistical reporting 
number 8413.91.9050 prior to January 1,

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2019; described in statistical reporting number 8413.91.9060 effective 
January 1, 2019)
    (96) Furnace roll end-shafts of steel (described in statistical 
reporting number 8417.90.0000)
    (97) Multi-phase AC motors of an output of at least 5.8 kW but not 
exceeding 14.92 kW, each assembled with planetary gears and a gearbox 
(described in statistical reporting number 8501.52.4000)
    B. Effective 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:
    1. U.S. note 20(i)(6) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``or described in statistical reporting number 8413.91.9095, post 
January 1, 2019'' and inserting ``; described in statistical reporting 
number 8413.91.9095, January 1, 2019, through December 31, 2019; 
described in statistical reporting number 8413.91.9085 or 8413.91.9096 
effective January 1, 2020'' in lieu thereof.
    2. U.S. note 20(i)(7) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``or described in statistical reporting number 8413.91.9095, post 
January 1, 2019'' and inserting ``; described in statistical reporting 
number 8413.91.9095, January 1, 2019, through December 31, 2019; 
described in statistical reporting number 8413.91.9085 or 8413.91.9096 
effective January 1, 2020'' in lieu thereof.
    3. U.S. note 20(m)(16) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9060'' and inserting ``8413.91.9050 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9060 effective 
January 1, 2019'' in lieu thereof.
    4. U.S. note 20(m)(17) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9060'' and inserting ``8413.91.9050 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9060 effective 
January 1, 2019'' in lieu thereof.
    5. U.S. note 20(m)(18) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8414.90.4190'' and inserting ``8414.90.4175 prior to July 1, 2018; 
described in statistical reporting number 8414.90.4190 effective July 
1, 2018'' in lieu thereof.
    6. U.S. note 20(m)(27) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8427.10.8070 and 8427.10.8095'' and inserting ``8427.10.8090 prior to 
July 1, 2019; described in statistical reporting number 8427.10.8070 or 
8427.10.8095 effective July 1, 2019'' in lieu thereof.
    7. U.S. note 20(n)(13) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020)'' in lieu thereof.
    8. U.S. note 20(n)(14) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting numbers 8413.91.9065, 8413.91.9085 or 8413.91.9096 effective 
January 1, 2020'' in lieu thereof.
    9. U.S. note 20(n)(15) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
'' 8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 
2019; described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    10. U.S. note 20(n)(16) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    11. U.S. note 20(n)(17) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    12. U.S. note 20(n)(18) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    13. U.S. note 20(n)(19) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    14. U.S. note 20(n)(20) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    15. U.S. note 20(n)(21) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    16. U.S. note 20(n)(22) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    17. U.S. note 20(n)(23) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.

[[Page 7819]]

    18. U.S. note 20(n)(24) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    19. U.S. note 20(n)(25) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    20. U.S. note 20(n)(26) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    21. U.S. note 20(n)(27) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    22. U.S. note 20(n)(30) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``(described in statistical reporting number 8427.20.8090)'' and 
inserting ``(described in statistical reporting number 8427.20.8000 
prior to July 1, 2019; described in statistical reporting number 
8427.20.8090 effective July 1, 2019)'' in lieu thereof.
    23. U.S. note 20(q)(19) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9085 or 8413.91.9096 effective January 1, 
2020'' in lieu thereof.
    24. U.S. note 20(q)(20) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting numbers 8413.91.9065, 8413.91.9085 or 8413.91.9096 effective 
January 1, 2020'' in lieu thereof.
    25. U.S. note 20(q)(21) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8413.91.9095'' and inserting ``8413.91.9080 prior to January 1, 2019; 
described in statistical reporting number 8413.91.9095 effective 
January 1, 2019 through December 31, 2019; described in statistical 
reporting number 8413.91.9096 effective January 1, 2020'' in lieu 
thereof.
    26. U.S. note 20(x)(20) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``statistical note 1 to chapter 84'' and inserting ``statistical note 1 
to chapter 84 effective July 1, 2019, to December 31, 2019, or in 
statistical note 2 to chapter 84 effective January 1, 2020'' in lieu 
thereof, and deleting ``8427.10.8020'' and inserting ``8427.10.8010 
prior to July 1, 2019; described in statistical reporting number 
8427.10.8020 effective July 1, 2019'' in lieu thereof.
    27. U.S. note 20(n)(86) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``18'' and inserting ``39'' in lieu thereof.
    28. U.S. note 20(q)(102) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``Cold-chamber die casting machines having a maximum casting volume of 
52.78 m\3\, a die height of 0.4 m or more but not exceeding 1 m, and a 
maximum die locking force of 8,400 kN'' and inserting ``Die casting 
machines with casting volume not to exceed 5,278 cm\3\, die height of 
not less than 360 mm but not more than 1,000 mm, and die locking force 
of not less than 6,600 kN but not more than 8,400 kN'' in lieu thereof.
    29. U.S. note 20(q)(170) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by deleting 
``8.9 kW or more but not exceeding 12 kW'' and inserting ``12 W or more 
but not exceeding 16 W'' in lieu thereof.

[FR Doc. 2020-02684 Filed 2-10-20; 8:45 am]
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