[Federal Register Volume 85, Number 138 (Friday, July 17, 2020)]
[Notices]
[Pages 43639-43644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15533]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2020-0029]


Request for Comments Concerning the Extension of Particular 
Exclusions Granted Under the $300 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: On August 20, 2019, at the direction of the President, the 
U.S. Trade Representative determined to modify the action being taken 
in the Section 301 investigation of China's acts, policies, and 
practices related to technology transfer, intellectual property, and 
innovation by imposing additional duties of 10 percent ad valorem on 
goods of China with an annual trade value of approximately $300 
billion. The additional duties on products in List 1, which is set out 
in Annex A of that action, became effective on September 1, 2019. The 
U.S. Trade Representative initiated a product exclusion process in 
October 2019, and as of the date of this notice, has issued six product 
exclusion notices under this action and anticipates issuing a seventh 
notice in the coming days. The product exclusions granted under these 
notices are scheduled to expire on September 1, 2020. The U.S. Trade 
Representative previously decided to consider a possible extension for 
up to twelve months of particular exclusions granted under the initial 
five product exclusion notices. The U.S. Trade Representative has 
decided to consider a possible extension for up to twelve months of 
particular exclusions granted under the sixth notice and a forthcoming 
seventh notice of product exclusions.

DATES: July 15, 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.
    August 14, 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), 84 FR 22564 (May 17, 2019), 84 FR 43304 (August 20, 
2019), 84 FR 45821 (August 30, 2019), 84 FR 57144 (October 24, 2019), 
84 FR 69447 (December 18, 2019), 85 FR 3741 (January 22, 2020), 85 FR 
13970 (March 10, 2020), 85 FR 15244 (March 17, 2020), 85 FR 17936 
(March 31, 2020), 85 FR 28693 (May 13, 2020), 85 FR 32099 (May 28, 
2020), 85 FR 35975 (June 12, 2020), 85 FR 38482 (June 26, 2020), and 85 
FR 41658 (July 10, 2020).
    In a notice published on August 20, 2019, the U.S. Trade 
Representative, at the direction of the President, announced a 
determination to modify the action being taken in the Section 301 
investigation by imposing an additional 10 percent ad valorem duty on 
products of China with an annual aggregate trade value of approximately 
$300 billion. 84 FR 43304 (August 20, 2019) (August 20 notice). The 
August 20 notice contains two separate lists of tariff subheadings, 
with two different effective dates. List 1, which is set out in Annex A 
of the August 20 notice, was effective on September 1, 2019. List 2, 
which is set out in Annex C of the August 20 notice, was scheduled to 
take effect on December 15, 2019. Subsequently, the U.S. Trade 
Representative announced determinations suspending until further notice 
the additional duties on products set out in Annex C (List 2) and 
reducing the additional duties for the products covered in Annex A of 
the August 20 notice (List 1) to 7.5 percent. See 84 FR 57144, 85 FR 
3741.
    On October 24, 2019, the U.S. Trade Representative established a 
process by which U.S. stakeholders could request exclusion of 
particular products classified within an eight-digit Harmonized Tariff 
Schedule of the United States (HTSUS) subheading covered by List 1 of 
the $300 billion action from the additional duties. See 84 FR 57144 
(October 24 notice). The October 24 notice required submission of 
requests for exclusion from the $300 billion action no later than 
January 31, 2020, and noted that the U.S. Trade Representative 
periodically would announce decisions. As of the date of this notice, 
the U.S. Trade Representative has issued six notices of product 
exclusions under this action and anticipates issuing a seventh notice 
in the coming days. These exclusions are scheduled to expire on 
September 1, 2020.

B. Possible Extensions of Particular Product Exclusions

    As noted, the U.S. Trade Representative previously decided to 
consider a possible extension for up to 12 months of particular 
exclusions granted under the initial 5 product exclusion notices under 
the $300 billion action. See 85 FR 38482 (June 26, 2020). This notice 
announces the U.S. Trade Representative's decision to consider a 
possible extension for up to twelve months of particular exclusions 
granted under the sixth notice and a forthcoming seventh notice of 
product exclusions. Accordingly, USTR invites public comments on 
whether to extend the particular exclusions issued under 85 FR 41658 
(July 10, 2020) and those product exclusions issued under the 
subsequent notice of product exclusions to be published in the Federal 
Register in the coming days. Public comments regarding the extension of 
particular exclusions under the first five notices of product 
exclusions issued under the $300 billion action must be filed under a 
separate docket (USTR-2020-0027). See 85 FR 38482 (June 26, 2020).
    The Office of the United States Trade Representative 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 2019, 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 
2019 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 2019 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 $300 billion action, commenters first

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must register on the portal at https://comments.USTR.gov. As noted 
above, the public docket will be open from July 15, 2020, to August 14, 
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 will not be publicly available. Fields with a green 
(Public) notation will be publicly available. Additionally, commenters 
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 15 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 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 third 
countries. Please include information concerning any changes in the 
global supply chain since September 2019 with respect to the particular 
product.
     The efforts you have undertaken since September 2019 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 or data in support of or in 
opposition to extending the exclusion that you consider relevant.

D. Submission Instructions

    To be assured of consideration, you must submit your comment 
between the opening of the public docket on July 15, 2020 and the 
August 14, 2020 submission deadline. If you seek to comment on two or 
more exclusions, you 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. 2020-15533 Filed 7-16-20; 8:45 am]
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