[Federal Register Volume 85, Number 123 (Thursday, June 25, 2020)]
[Notices]
[Pages 38237-38243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13708]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2020-0025]


Request for Comments Concerning the Extension of Particular 
Exclusions Granted Under the September 2019 Product Exclusion Notice 
From the $16 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 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 initiated the exclusion process in September 2018 
and granted multiple sets of exclusions. The second set of exclusions 
was granted in September 2019, and are scheduled to expire on September 
20, 2020. The U.S. Trade Representative has decided to consider a 
possible extension for up to 12 months of particular exclusions granted 
in September 2019. The Office of the U.S. Trade Representative (USTR) 
invites public comment on whether to extend particular exclusions.

DATES: 
    July 1, 2020 at 12:01 a.m. ET: 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.

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    July 30, 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 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), 85 FR 10808 (February 25, 2020), and 85 FR 
28691 (May 13, 2020).
    Effective August 23, 2018, the U.S. Trade Representative imposed 
additional 25 percent duties on goods of China classified in 279 eight-
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 eight-
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 (September 18 notice).
    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. The U.S. Trade Representative has granted multiple 
sets of exclusions. The second set of exclusions was granted in 
September 2019, and are scheduled to expire on September 20, 2020. See 
84 FR 49600 (September 20, 2019) (the September 2019 notice).

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 in the 
September 2019 notice. Accordingly, USTR invites public comments on 
whether to extend particular exclusions granted in the September 2019 
notice. For exclusions amended or corrected by a later issued notice of 
product exclusions, 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 August 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 August 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 August 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 in the September 2019 notice, 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 July 1, 2020, to July 
30, 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 
July 1 opening of the public docket, a facsimile of the exclusion 
extension comment form parties will use on the portal is annexed to 
this notice. Please note that the color-coding of public fields and BCI 
fields is not visible on the attached facsimile, 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 business confidential 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 August 2018 with respect to the particular 
product.
     The efforts you have undertaken since August 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.

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     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 July 1, 2020, 
and the July 30, 2020 submission deadline. Parties seeking to comment 
on two or more exclusions 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 assigned control number 0350-0015, which expires January 31, 
2023.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
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[FR Doc. 2020-13708 Filed 6-24-20; 8:45 am]
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