[Federal Register Volume 86, Number 49 (Tuesday, March 16, 2021)]
[Notices]
[Pages 14513-14514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05354]


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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 the 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 European Union for a period of four months. The 
suspension is in accord with a joint U.S.-EU statement that promotes a 
resolution of the large civil aircraft dispute.

DATES: As of 12:01 a.m. eastern standard time on March 11, 2021, the 
additional duties on products of the European Union 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 concerning revisions or modifications of action, 85 
FR 10204 (February 21, 2020), 85 FR 50866 (August 18, 2020), 86 FR 674 
(January 6, 2021), 86 FR 9420 (February 12, 2021), and FR Doc. 2021-
05035 (March 11, 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].''
    On March 5, 2021, the United States and the European Union issued a 
Joint Statement promoting a resolution of the large civil aircraft 
dispute:

    The European Union and the United States today agreed on the 
mutual suspension for four months of the tariffs related to the 
World Trade Organization (WTO) Aircraft disputes. The suspension 
will cover all tariffs both on aircraft as well as on non-aircraft 
products, and will become effective as soon as the internal 
procedures on both sides are completed.
    This will allow the EU and the US to ease the burden on their 
industries and workers and focus efforts towards resolving these 
long running disputes at the WTO.
    The EU and the US are committed to reach a comprehensive and 
durable negotiated solution to the Aircraft disputes. Key elements 
of a negotiated solution will include disciplines on future support 
in this sector, outstanding support measures, monitoring and 
enforcement, and addressing the trade distortive practices of and 
challenges posed by new entrants to the sector from non-market 
economies, such as China.
    These steps signal the determination of both sides to embark on 
a fresh start in the relationship.

    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 European Union 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, 
9903.89.37, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52, 9903.89.55, 
9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63, and as provided by 
their associated subchapter notes, will not apply to products of 
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech 
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, 
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, 
Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden, that 
are entered for consumption, or withdrawn from warehouse for 
consumption, on or after 12:01 a.m. eastern standard time on March 11, 
2021, and before 12:01 a.m. eastern daylight time on July 11, 2021.
    Any product of Austria, Belgium, Bulgaria, Croatia, Republic of 
Cyprus,

[[Page 14514]]

Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, 
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and 
Sweden, that was 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 11, 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, 9903.89.37, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52, 
9903.89.55, 9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63 upon 
entry for consumption.
    Any product of Austria, Belgium, Bulgaria, Croatia, Republic of 
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, 
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, 
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and 
Sweden 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 11, 2021, and before 12:01 a.m. eastern daylight 
time on July 11, 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 Austria, 
Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, 
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, 
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, 
Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden 
that are entered for consumption, or withdrawn from warehouse for 
consumption, on or after 12:01 a.m. eastern standard time on March 
11, 2021, and entered for consumption, or withdrawn from warehouse 
for consumption, before 12:01 a.m. eastern daylight time on July 11, 
2021:
    1. Note 21(a) to subchapter III of chapter 99 of the Harmonized 
Tariff Schedule of the United States is modified by deleting 
``Except as provided in note 21(u) of this subdivision,'' and by 
inserting ``Except as provided in notes 21(u) and 21(v) of this 
subdivision,'' 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:
    ``(v) 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, 9903.89.37, 
9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52, 9903.89.55, 
9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63 and as provided 
by their associated subchapter notes, shall not apply to articles 
the product of Austria, Belgium, Bulgaria, Croatia, Republic of 
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, 
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, 
Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, 
Spain, and Sweden that are entered on or after 12:01 a.m. eastern 
standard time on March 11, 2021 and before 12:01 a.m. eastern 
daylight time on July 11, 2021.''

Greta M. Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-05354 Filed 3-15-21; 8:45 am]
BILLING CODE 3290-F1-P