[Federal Register Volume 85, Number 155 (Tuesday, August 11, 2020)]
[Notices]
[Pages 48600-48626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17509]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion Extensions: 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 extensions.

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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 the exclusion process on June 24, 2019, 
and has granted 15 sets of exclusions under the $200 billion action. 
These exclusions will expire on August 7, 2020. On May 6, 2020 and June 
3, 2020, the U.S. Trade Representative established a processes for the 
public to comment on whether to extend particular exclusions granted 
under the $200 billion action for up to 12 months. This notice 
announces the U.S. Trade Representative's determination to extend 
certain exclusions through December 31, 2020.

DATES: The product exclusion extensions announced in this notice will 
apply as of August 7, 2020, and extend through December 31, 2020. 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 Assistant 
General Counsel Benjamin Allen, 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:

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 FR 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), 85 FR 17158 (March 26, 2020), 85 FR 23122 (April 24, 
2020), 85 FR 27489 (May 8, 2020), 85 FR 32094 (May 28, 2020), 85 FR 
38000 (June 24, 2020), and 85 FR 42968 (July15, 2020).
    Effective September 24, 2018, the U.S. Trade Representative imposed 
additional 10 percent ad valorem duties on goods of China classified in 
5,757 full and partial subheadings 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 U.S. Trade 
Representative established a process by which stakeholders could 
request exclusion of particular products classified within an eight-
digit HTSUS subheading covered by the $200 billion action from the 
additional duties. See 84 FR 29576 (June 24 notice). The U.S. Trade 
Representative issued a notice setting out the process for the product 
exclusions and opened a public docket. The exclusions the U.S. Trade 
Representative granted under the $200 billion action expire on August 
7, 2020. See, e.g., 84 FR 38717 (August 7, 2019).
    On May 6 and June 3, 2020, the U.S. Trade Representative invited 
the public to comment on whether to extend by up to 12 months, 
particular exclusions granted under the $200 billion action. See 85 FR 
27011 (May 6, 2020); 85 FR 34279 (June 3, 2020) (the $200 billion 
extension notices).
    Under the $200 billion extension notices, commenters were asked to 
address:
     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.
     Efforts, if any, importers or U.S. purchasers have 
undertaken since September 2018 to source the product from the United 
States or third countries.
    In addition, commenters who were importers and/or purchasers of the 
products covered by an exclusion were asked to provide information 
regarding:
     Their efforts 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, 
and whether these purchases are from a 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.
     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.
    The May 6, 2020 notice required the submission of comments no later 
than June 8, 2020. The June 3, 2020 notice required the submission of 
comments no later than July 7, 2020.

B. Determination To Extend Certain Exclusions

    Based on evaluation of the factors set out in the June 24 notice 
and the $200 billion extension notices, which are summarized above, 
pursuant to sections 301(b), 301(c), and 307(a) of the Trade Act of 
1974, as amended, and in accordance with the advice of the interagency 
Section 301 Committee, the U.S. Trade Representative has determined to 
extend certain product exclusions granted under the $200 billion 
action, as set out in the Annex to this notice.
    The $200 billion extension notices provided that the U.S. Trade 
Representative would consider extensions of up to 12 months. In light 
of the cumulative effect of current and possible future exclusions or 
extensions of exclusions on the effectiveness of the action taken in 
this investigation, the U.S. Trade Representative has determined to 
extend the exclusions in the Annex to this notice for less than 12 
months--through December 31, 2020. To date, the U.S. Trade 
Representative has granted more than 6,700 exclusion requests, has 
extended some of these exclusions, and may consider further

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extensions of exclusions. Furthermore, more than 200 requests are 
pending on the products covered by the action taken on August 20, 2019. 
The U.S. Trade Representative will take account of the cumulative 
effect of exclusions in considering the possible further extension of 
the exclusions covered by this notice, as well as possible extensions 
of exclusions of other products covered by the action in this 
investigation. The U.S. Trade Representative's determination also takes 
into account advice from advisory committees and any public comments 
concerning extension of the pertinent exclusion.
    In accordance with the June 24 notice, the exclusions are available 
for any product that meets the description in the Annex, regardless of 
whether the importer filed an exclusion request. Further, the scope of 
each exclusion is governed by the scope of the ten-digit HTSUS headings 
and product descriptions in the Annex to this notice, and not by the 
product descriptions set out in any particular request for exclusion.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
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[FR Doc. 2020-17509 Filed 8-10-20; 8:45 am]
BILLING CODE 3290-F0-C