[Federal Register Volume 85, Number 37 (Tuesday, February 25, 2020)]
[Notices]
[Pages 10808-10809]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03680]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion: 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 and Amendment.

-----------------------------------------------------------------------

SUMMARY: Effective August 23, 2018, the U.S. Trade Representative 
imposed additional duties on goods of China with an annual trade value 
of approximately $16 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 September 2018, and stakeholders have submitted 
requests for the exclusion of specific products. The U.S. Trade 
Representative is issuing determinations to grant exclusion requests on 
a rolling basis. This notice announces the U.S. Trade Representative's 
determination to grant the additional exclusion specified in the Annex 
to this notice, and to make a technical amendment to a previously 
granted exclusion.

DATES: The product exclusion will apply as of the August 23, 2018 
effective date of the $16 billion action, and will extend through 
October 1, 2020. The technical amendment announced in this notice 
applies to the time period established for the original exclusion, that 
is, retroactive to the original date of October 2, 2019, and ending on 
October 1, 2020 at 11:59 p.m. EDT. 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 47236 (September 18, 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 29576 (June 24, 
2019), 84 FR 37381 (July 31, 2019), 84 FR 49600 (September 20, 2019), 
84 FR 52553 (October 2, 2019), and 84 FR 69011 (December 17, 2019).
    Effective August 23, 2018, the U.S. Trade Representative imposed 
additional 25 percent duties on goods of China classified in 279 8-
digit subheadings of the Harmonized Tariff Schedule of the United 
States (HTSUS), with an approximate annual trade value of $16 billion. 
See 83 FR 40823. The U.S. Trade Representative's determination included 
a decision to establish a process by which U.S. stakeholders may 
request exclusion of particular products classified within an 8-digit 
HTSUS subheading covered by the $16 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 47236 (the September 18 notice).
    Under the September 18 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 $16 billion

[[Page 10809]]

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 September 18 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 September 18 notice required submission of requests for 
exclusion from the $16 billion action no later than December 18, 2018, 
and noted that the U.S. Trade Representative periodically would 
announce decisions. In July 2019, the U.S. Trade Representative granted 
an initial set of exclusion requests. See 84 FR 37381. The U.S. Trade 
Representative granted additional exclusions in September and October 
2019. See 84 FR 49600 and 84 FR 52553.

B. Determination To Grant Exclusion

    Based on the evaluation of the factors set out in the September 18 
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 
exclusion 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.
    As set out in the Annex, the exclusion is reflected in a specially 
prepared product description, found in Paragraph A.
    In accordance with the September 18 notice, an exclusion is 
available for any product that meets the description in the Annex, 
regardless of whether the importer filed an exclusion request. Further, 
the scope of the exclusion is governed by the scope of the 10-digit 
HTSUS subheading and product description in the Annex to this notice, 
and not by the product description set out in any particular request 
for exclusion.

C. Technical Amendment to an Exclusion

    Subparagraph B of the Annex makes a technical amendment to U.S. 
note 20(y)(2) to subchapter III of chapter 99 of the HTSUS, as set out 
in the annex of the notice published at 84 FR 52553 (October 2, 2019). 
In particular, the amendment in Subparagraph B converts an exclusion of 
a specially prepared product description to an exclusion of a 10-digit 
HTSUS subheading.
    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 August 23, 2018 and before October 2, 2020, 
U.S. note 20(y) to subchapter III of chapter 99 of the Harmonized 
Tariff Schedule of the United States (HTSUS) is modified by 
inserting the following exclusion in numerical order after exclusion 
(111):
    112. Skateboards with electric power for propulsion, of a power 
not exceeding 250 W (described in statistical reporting number 
8711.60.0050).
    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 August 23, 2018:
    U.S. note 20(y)(2) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``silicone presented in 210 liter (55 gallon) drums or 
1,040 liter (275 gallon) intermediate bulk containers (IBCs) 
(described in statistical reporting number 3910.00.0000)'' and 
inserting ``3910.00.0000'' in lieu thereof.

[FR Doc. 2020-03680 Filed 2-24-20; 8:45 am]
 BILLING CODE 3290-F0-P