[Federal Register Volume 85, Number 93 (Wednesday, May 13, 2020)]
[Notices]
[Pages 28691-28692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10231]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusions: 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 amendments.

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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. In July, September, 
and October 2019, and February 2020, the U.S. Trade Representative 
issued determinations to grant certain exclusion requests on a rolling 
basis. This notice announces the U.S. Trade Representative's 
determination to make certain technical amendments to previously 
granted exclusions.

DATES: The technical amendments announced in 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 Associate 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:

[[Page 28692]]

A. Background

    For background on the proceedings in this investigation, please see 
prior notices 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), 84 FR 
69011 (December 17, 2019), and 85 FR 10808 (February 25, 2020).
    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 could 
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 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 
objectives 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, and February 2020. See 84 FR 49600, 84 FR 52553, 85 FR 10808.

B. Technical Amendments to Exclusions

    Subparagraph A of the Annex makes four technical amendments to U.S. 
notes 20(v)(2), 20(v)(8), 20(v)(78), and 20(y)(83) to subchapter III of 
chapter 99 of the HTSUS, as set out in the Annexes of the notice 
published at 84 FR 49600 (September 20, 2019) and 84 FR 52553 (October 
2, 2019).
    The U.S. Trade Representative will continue to issue determinations 
on a periodic basis as needed.

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:
    1. U.S. note 20(v)(2) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``valued at $5.40 to $5.60 per kg'' and inserting ``valued 
at $4.00 to $7.00 per kg'' in lieu thereof.
    2. U.S. note (20)(v)(8) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``20 cm or more in length'' and inserting ``18 cm or more 
in length'' in lieu thereof.
    3. U.S. note 20(v)(78) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``(described in statistical reporting number 
8541.10.0080)'' and inserting ``(described in statistical reporting 
number 8541.10.0050)'' in lieu thereof.
    4. U.S. note 20(y)(83) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``storing downloadable readings'' and inserting ``storing 
downloadable readings or storing temperature parameters'' in lieu 
thereof.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-10231 Filed 5-12-20; 8:45 am]
BILLING CODE 3290-F0-P