[Federal Register Volume 86, Number 46 (Thursday, March 11, 2021)]
[Notices]
[Pages 13961-13962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05035]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Modification of Section 301 Action: Enforcement of U.S. 
WTO Rights in Large Civil Aircraft Dispute

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

ACTION: Notice.

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SUMMARY: The U.S. Trade Representative has determined to modify the 
action being taken in the investigation by suspending the additional 
tariffs on goods of the United Kingdom for a period of four months. The 
suspension is in accord with a joint U.S.-UK statement that promotes a 
resolution of the large civil aircraft dispute.

DATES: As of 12:01 a.m. eastern standard time on March 4, 2021, the 
additional duties on products of the United Kingdom covered by the 
action taken in this investigation are suspended for a period of four 
months.

FOR FURTHER INFORMATION CONTACT: For questions about the investigation 
or this notice, contact Associate General Counsel Megan Grimball, at 
(202) 395-5725, or Director for Europe Michael Rogers, at (202) 395-
3320.

SUPPLEMENTARY INFORMATION:

A. Proceedings in the Investigation

    For background on the proceedings in this investigation, please see 
prior notices including: Notice of initiation, 84 FR 15028 (April 12, 
2019); notice of determination and action, 84 FR 54245 (October 9, 
2019); and notices of revision of action,85 FR 10204 (February 21, 
2020), 85 FR 50866 (August 18, 2020), 86 FR 674 (January 6, 2021), and 
86 FR 9420 (February 12, 2021).

B. Modification of Action

    Section 307(a) of the Trade Act of 1974, as amended, (Trade Act) 
provides that the U.S. Trade Representative may modify or terminate any 
action subject to the specific direction, if any, of the President with 
respect to such action, that is being taken under section 301 if any of 
the conditions described in section 301(a)(2) exist. Section 
301(a)(2)(B)(iv) of the Trade Act provides that the U.S. Trade 
Representative is not required to take action under section 301(a)(1) 
``in extraordinary cases, where the taking of action . . . would have 
an adverse impact on the United States economy substantially out of 
proportion to the benefits of such action, taking into account the 
impact of not taking such action on the credibility of [actions taken 
under Section 301].''
    Since its withdrawal from the European Union, the United Kingdom 
has demonstrated an increasing willingness to find a negotiated 
resolution to the disputes regarding trade in large civil aircraft. On 
March 4, 2021, the United States and the United Kingdom issued a Joint 
Statement promoting a resolution of the Large Civil Aircraft dispute:

    The United Kingdom and the United States are undertaking a four-
month tariff suspension to ease the burden on industry and take a 
bold, joint step towards resolving the longest running disputes at 
the World Trade Organization.
    The United Kingdom ceased applying retaliatory tariffs in the 
Boeing dispute from January 1, 2021 to de-escalate the issue and 
create space for a negotiated settlement to the Airbus and Boeing 
disputes.
    The United States will now suspend retaliatory tariffs in the 
Airbus dispute from March 4, 2021, for four months. This will allow 
time to focus on negotiating a balanced settlement to the disputes, 
and begin seriously addressing the challenges posed by new entrants 
to the civil aviation market from non-market economies, such as 
China.
    This will benefit a wide range of industries on both sides of 
the Atlantic, and allow for

[[Page 13962]]

focused settlement negotiations to ensure that our aerospace 
industries can finally see a resolution and focus on COVID recovery 
and other shared goals.

    Promoting a successful resolution of the dispute by suspending the 
additional duties provides benefits to the U.S. economy that outweigh 
any adverse impacts on the U.S. economy, and the suspension maintains 
the credibility of the Section 301 action. Accordingly, the U.S. Trade 
Representative has determined, in accordance with sections 307(a) and 
301(a)(2)(B)(iv) of the Trade Act, to modify the action by suspending 
the additional duties on products of the United Kingdom for four 
months. The decision to modify the action takes into account the public 
comments received in response to prior notices issued in the 
investigation, as well as the advice of the interagency Section 301 
Committee.
    To give effect to the U.S. Trade Representative's determination, as 
specified in the Annex to this notice, the additional duties imposed by 
subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 
9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 
9903.89.40, 9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 
9903.89.55, and as provided by their associated subchapter notes, will 
not apply to products of the United Kingdom that are entered for 
consumption, or withdrawn from warehouse for consumption, on or after 
12:01 a.m. eastern standard time on March 4, 2021, and before 12:01 
a.m. eastern daylight time on July 4, 2021.
    Any products of the United Kingdom that were admitted into a U.S. 
foreign trade zone in `privileged foreign status' as defined in 19 CFR 
146.41, before 12:01 a.m. eastern standard time on March 4, 2021, will 
remain subject to the applicable duties in subheadings 9903.89.05, 
9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 
9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55 upon entry for 
consumption.
    Any product of the United Kingdom covered by subparagraph 2 of the 
Annex to this notice that is admitted into a U.S. foreign trade zone on 
or after 12:01 a.m. eastern standard time on March 4, 2021, and before 
12:01 a.m. eastern daylight time on July 4, 2021, may be admitted in 
any status, as applicable, as defined in 19 CFR 146, Subpart D.
    The U.S. Trade Representative will continue to consider the action 
taken in this investigation.

Annex

    Effective with respect to articles the product of the United 
Kingdom that are entered for consumption, or withdrawn from 
warehouse for consumption, on or after 12:01 a.m. eastern standard 
time on March 4, 2021, and entered for consumption, or withdrawn 
from warehouse for consumption, before 12:01 a.m. eastern daylight 
time on July 4, 2021:
    1. Note 21(a) to subchapter III of chapter 99 of the Harmonized 
Tariff Schedule of the United States is modified by deleting ``For 
the purposes of subheadings 9903.89.05 through 9903.89.63,'' and by 
inserting ``Except as provided in note 21(u) of this subdivision, 
for the purposes of subheadings 9903.89.05 through 9903.89.63,'' in 
lieu thereof.
    2. Note 21 to subchapter III of chapter 99 of the Harmonized 
Tariff Schedule of the United States is modified by inserting in 
alphabetical order:
    (u) The U.S. Trade Representative has determined that additional 
duties imposed by subheadings 9903.89.05, 9903.89.07, 9903.89.10, 
9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 
9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 
9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55, and as provided 
by their associated subchapter notes, shall not apply to articles 
the product of the United Kingdom that are entered on or after 12:01 
a.m. eastern standard time on March 4, 2021 and before 12:01 a.m. 
eastern daylight time on July 4, 2021.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-05035 Filed 3-10-21; 8:45 am]
BILLING CODE 3290-F0-P