[Federal Register Volume 85, Number 249 (Tuesday, December 29, 2020)]
[Notices]
[Pages 85831-85846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28780]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Product Exclusion Extensions and Additional 
Modifications: China's Acts, Policies, and Practices Related to 
Technology Transfer, Intellectual Property, and Innovation

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice of product exclusion extensions and additional 
modifications.

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SUMMARY: In prior notices, the U.S. Trade Representative modified the 
action in the Section 301 investigation of China's acts, policies, and 
practices related to technology transfer, intellectual property, and 
innovation by excluding from additional duties certain medical-care 
products needed to address the COVID-19 outbreak. On March 25, 2020, 
the U.S. Trade Representative sought public comment on additional 
modifications in this investigation in order to address COVID-19. This 
notice announces the U.S. Trade Representative's determination to 
extend certain product exclusions and to make further modifications to 
remove Section 301 duties from additional medical-care products to 
address COVID-19.

DATES: The product exclusion extensions announced in this notice will 
extend the exclusions through March 31, 2021. The modifications to 
exclude additional products will apply as of January 1, 2021 until 
March 31, 2021. 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, Assistant 
General Counsels Benjamin Allen or Susie Park Hodge, 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 Annexes to this notice, contact 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    At the direction of the President, the U.S. Trade Representative 
imposed additional duties on products of China in order to obtain the 
elimination of the unfair and damaging acts, policies, and practices 
identified in this investigation. These additional duties were imposed 
in four tranches. See 83 FR 28719 (June 20, 2018), 83 FR 40823 (August 
16, 2018), 83 FR 47974 (September 21, 2018), as modified by 83 FR 49153 
(September 28, 2018), and 84 FR 43304 (August 20, 2019), as modified by 
84 FR 69447 and 85 FR 3741.
    For each tranche, the U.S. Trade Representative established a 
process by which U.S. stakeholders could request the exclusion of 
particular products subject to the action. Additionally, the U.S. Trade 
Representative later established a process by which U.S. stakeholders 
could request the extension of particular exclusions.
    Throughout the exclusion process, USTR assessed medical necessity 
in granting exclusions, consistent with its published criteria. In 
addition, the U.S.

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Trade Representative, in consultation with the Department of Health and 
Human Services (HHS), prioritized the review and exclusion of requests 
addressing medical-care products related to the U.S. response to COVID-
19. See 85 FR 13970 (March 10, 2020), 85 FR 15015 (March 16, 2020), and 
85 FR 15244 (March 17, 2020). These exclusions covered personal 
protective equipment products and other medical-care related products.
    On March 25, 2020, in order to reflect developments in the efforts 
to respond to COVID-19, the U.S. Trade Representative requested public 
comments on possible further modifications to remove Section 301 duties 
from additional medical-care products to address the COVID-19 outbreak. 
85 FR 16987 (March 25, 2020). This docket was open from March 25-June 
25, 2020, and each commenter was required to identify the particular 
product of concern and explain how it relates to the response to COVID-
19. USTR accepted comments regarding any product covered by the action 
in the investigation, regardless of whether the product was subject to 
a pending or denied exclusion request.

B. Determination To Extend Certain Exclusions and Make Additional 
Modifications

    In light of the rising spread and ongoing efforts to combat COVID-
19, the U.S. Trade Representative has determined that maintaining or 
re-imposing additional duties on certain products subject to the action 
no longer is appropriate and that the application of additional duties 
to these products could impact U.S. preparedness to address COVID-19.
    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 on medical-care products and to 
remove the duties from additional medical-care products. The medical-
care products covered by this determination are set out in the annexes 
to this notice. In light of the evolving nature of the battle against 
COVID-19, the U.S. Trade Representative has determined to extend the 
exclusions in the annexes until March 31, 2021, and the modifications 
will be effective from January 1, 2021, to March 31, 2021. The U.S. 
Trade Representative may consider further extensions and/or additional 
modifications as appropriate. The U.S. Trade Representative's 
determination also takes into account advice from advisory committees 
and any public comments.
    The exclusions and modifications are available for any product that 
meets the description in the Annexes. Further, the scope of each 
exclusion and modification is governed by the scope of the ten-digit 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings and 
product descriptions in the annexes to this notice.

Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
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[FR Doc. 2020-28780 Filed 12-28-20; 8:45 am]
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