[Federal Register Volume 85, Number 93 (Wednesday, May 13, 2020)]
[Notices]
[Pages 28692-28693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10232]


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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 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, 
March, April, May, June, July, September, October, and December 2019, 
and February 2020 the U.S. Trade Representative issued determinations 
to grant 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 28693]]

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 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), 84 FR 69016 
(December 17, 2019), and 85 FR 7816 (February 11, 2020).
    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 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 objectives 
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, and February 2020. 
See 84 FR 49600; 84 FR 52553; 85 FR 10808; 84 FR 11152; 84 FR 16310; 84 
FR 21389; 84 FR 25895; 84 FR 32821; 84 FR 49564; 84 FR 52567; 84 FR 
69016; and 85 FR 7816.

B. Technical Amendments to Exclusions

    Subparagraph A of the Annex makes two technical amendments to U.S. 
notes 20(q)(184), and 20(q)(228) to subchapter III of chapter 99 of the 
HTSUS, as set out in the Annex of the notice published at 84 FR 49564 
(September 20, 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 July 6, 2018:
    1. U.S. note 20(q)(184) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``AC motors, multi-phase, of an output exceeding 37.5 W but 
not exceeding 74.6 W, each fitted with a timing belt (described in 
statistical reporting number 8501.51.4040)'' and inserting ``AC 
motors, 3 phase, fitted with a timing belt and of an output no less 
than 90 W but not exceeding 135 W (described in statistical 
reporting number 8501.51.4040)'' in lieu thereof.
    2. U.S. note 20(q)(228) to subchapter III of chapter 99 of the 
Harmonized Tariff Schedule of the United States is modified by 
deleting ``each valued not over $18'' and inserting ``each valued 
not over $39'' in lieu thereof.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-10232 Filed 5-12-20; 8:45 am]
 BILLING CODE 3290-F0-P