[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Notices]
[Pages 27011-27017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09653]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2020-0015]


Request for Comments Concerning the Extension of Particular 
Exclusions Granted Under the $200 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 September 24, 2018, the U.S. Trade Representative 
imposed additional duties on goods of China with an annual trade value 
of approximately $200 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 an exclusion process for the $200 
billion action in June 2019, and as of March 26, 2020, has issued 11 
product exclusion notices under this action. The product exclusions 
granted under these notices are scheduled to expire on August 7, 2020. 
The U.S. Trade Representative has decided to consider a possible 
extension for up to 12 months of particular exclusions granted under 
these initial 11 product exclusion notices. The Office of the U.S. 
Trade Representative (USTR) invites public comment on whether to extend 
particular exclusions.

DATES: 
    May 1, 2020: The public docket on the web portal at https://comments.USTR.gov will open for parties to submit comments on the 
possible extension of particular exclusions.
    June 8, 2020 at 11:59 p.m. ET: To be assured of consideration, 
submit written comments on the public docket by this deadline.

ADDRESSES: You must submit all comments through the online portal: 
https://comments.USTR.gov.

FOR FURTHER INFORMATION CONTACT: Associate General Counsel Philip 
Butler or Assistant General Counsel Benjamin Allen at (202) 395-5725.

SUPPLEMENTARY INFORMATION:

A. Background

    For background on the proceedings in this investigation, please see 
prior notices including 82 FR 40213 (August 24, 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 47974 (September 21, 2018), 
83 FR 49153 (September 28, 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 FRN 38717 (August 7, 2019), 84 FR 46212 (September 3, 
2019), 84 FR 49591 (September 20, 2019), 84 FR 57803 (October 28, 
2019), 84 FR 61674 (November 13, 2019), 84 FR 65882 (November 29, 
2019), 84 FR 69012 (December 17, 2019), 85 FR 549 (January 6, 2020), 85 
FR 6674 (February 5, 2020), 85 FR 9921 (February 20, 2020), 85 FR 15015 
(March 16, 2020), and 85 FR 17158 (March 26, 2020).
    Effective September 24, 2018, the U.S. Trade Representative imposed 
additional 10 percent duties on goods of China classified in 5,757 full 
and partial subheading of the Harmonized Tariff Schedule of the United 
States (HTSUS) with an approximate annual trade value of $200 billion. 
See 83 FR 47974, as modified by 83 FR 49153. In May 2019, the U.S. 
Trade Representative increased the additional duty to 25 percent. See 
84 FR 20459. On June 24, 2019, the Trade Representative established a 
process by which U.S. stakeholders could request exclusion of 
particular products classified within an 8-digit HTSUS subheading 
covered by the $200 billion

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action from the additional duties. See 84 FR 29576 (the June 24 
notice).
    The June 24 notice required submission of requests for exclusion 
from the $200 billion action no later than September 30, 2019, and 
noted that the U.S. Trade Representative periodically would announce 
decisions. As of March 26, 2020, the U.S. Trade Representative has 
issued 11 notices of product exclusions under the $200 billion action. 
These exclusions are scheduled to expire on August 7, 2020.

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 under 
the initial 11 product exclusion notices under the $200 billion action. 
At this time, USTR is not considering product exclusion notices issued 
after March 26, 2020. Accordingly, USTR invites public comments on 
whether to extend particular exclusions granted under the following 
notices of product exclusions:

 84 FR 38717 (August 7, 2019)
 84 FR 49591 (September 20, 2019)
 84 FR 57803 (October 29, 2019)
 84 FR 61674 (November 13, 2019)
 84 FR 65882 (November 29, 2019)
 84 FR 69012 (December 17, 2019)
 85 FR 549 (January 6, 2020)
 85 FR 6674 (February 5, 2020)
 84 FR 9921 (February 20, 2020)
 85 FR 15015 (March 16, 2020)
 85 FR 17158 (March 26, 2020)

    For exclusions amended or corrected by a later issued notice, 
parties should provide their extension comments on the docket 
corresponding to the initial notice of product exclusions.
    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 September 
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 September 
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 September 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.

C. Procedures To Comment on the Extension of Particular Exclusions

    To submit a comment regarding the extension of a particular 
exclusion granted under the above referenced product exclusion notices 
under the $200 billion action, commenters must first register on the 
portal at https://comments.USTR.gov. As noted above, the public docket 
on the portal will be open from May 1, 2020, to June 8, 2020. After 
registration, the commenter may submit an exclusion extension comment 
form to the public docket.
    Fields on the comment form marked with an asterisk (*) are required 
fields. Fields with a gray (BCI) notation are for business confidential 
information and the information entered will not be publicly available. 
Fields with a green (public) notation will be publicly available. 
Additionally, parties will be able to upload documents and indicate 
whether the documents are BCI or public. Commenters will be able to 
review the public version of their comments before they are posted.
    In order to facilitate the preparation of comments prior to the May 
1 opening of the public docket, a facsimile of the exclusion extension 
comment form to be used on the portal is annexed to this notice. Please 
note that the color-coding of the public and BCI fields is not visible 
on the annex, but will be apparent on the actual comment form used on 
the portal.
    Set out below is a summary of the information to be entered on the 
exclusion extension comment form.
     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 number for the exclusion on which you are commenting 
as provided in the annex of the Federal Register notice granting the 
exclusion and the description. For descriptions, amended or corrected 
by a later issued notice of product exclusions, parties should use the 
amended or corrected description.
     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 intends to 
submit a more detailed BCI rationale.
     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 September 2018 with respect to the particular 
product.
     The efforts you have undertaken since September 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 and 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 and 
2019.
     If applicable, the commenter's gross revenue for 2018 and 
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 of or in opposition 
to extending the exclusion.
    Commenters also may provide any other information or data that they 
consider relevant.

D. Submission Instructions

    To be assured of consideration, you must submit your comment 
between the opening of the public docket on the portal on May 1, 2020 
and the June 8, 2020 submission deadline. Parties seeking to comment on 
more than one exclusion must submit a separate comment for each 
exclusion.
    By submitting a comment, the commenter certifies that the 
information provided is complete and correct to the best of their 
knowledge.

E. Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 and its implementing regulations, the Office of Management and 
Budget has

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assigned control number 0350-0015, which expires January 31, 2023.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
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[FR Doc. 2020-09653 Filed 5-5-20; 8:45 am]
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