[Federal Register Volume 86, Number 193 (Friday, October 8, 2021)]
[Notices]
[Pages 56345-56347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22062]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Request for Comments on the Possible Reinstatement of Certain 
Exclusions in the Section 301 Investigation of 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 and request for comments.

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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 certain products from additional duties in 
multiple tranches. From the various tranches of granted exclusions, the 
U.S. Trade Representative subsequently extended 549 exclusions. Most of 
these extensions expired by December 31, 2020. The remainder expired 
earlier this year. USTR invites specific comments on whether to 
reinstate particular product exclusions.

DATES: October 12, 2021 at 12:01 a.m. EDT: The public docket on the web 
portal at https://comments.USTR.gov will open for parties to submit 
comments on the possible reinstatement of particular exclusions. 
December 1, 2021 at 11:59 p.m. EST: To be assured of consideration, 
submit written comments on the public docket by this date.

ADDRESSES: You must submit all comments through the online portal: 
https://comments.USTR.gov.

[[Page 56346]]


FOR FURTHER INFORMATION CONTACT: For general questions about this 
notice and request for comments, contact Associate General Counsel 
Philip Butler or Assistant General Counsel David Salkeld at (202) 395-
5725.

SUPPLEMENTARY INFORMATION:

A. Background

    In the course of this investigation the U.S. Trade Representative 
imposed additional duties on products of China 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 (December 
18, 2019); and 85 FR 3741 (January 22, 2020). Each tranche is commonly 
known as a `List', e.g., List 1, List 2, etc. The fourth tranche is 
contained in Lists 4A and 4B. No tariffs on List 4B currently are in 
effect.
    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. The first tranche of 
exclusions expired in December 2019 and the final tranche of exclusions 
expired in October 2020. Starting in November 2019, the U.S. Trade 
Representative established processes for submitting public comments on 
whether to extend particular exclusions. See, e.g., 85 FR 6687 
(February 5, 2019) and 85 FR 38482 (June 26, 2020). Pursuant to these 
processes, the U.S. Trade Representative determined to extend 137 
exclusions covered under List 1,\1\ 59 exclusions on List 2,\2\ 266 
exclusions on List 3,\3\ and 87 exclusions on List 4.\4\ With the 
exception of exclusions related to the COVID pandemic, all of these 549 
exclusions have expired. In particular, the exclusions for most of 
these products expired by December 31, 2020, and the remaining 
exclusions expired on March 25, and April 18, 2021. See 85 FR 15849 and 
85 FR 20332. USTR is separately addressing the possible extension of 
current COVID exclusions. See 86 FR 48280 and 86 FR 54011.
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    \1\ List 1 Notices: 84 FR 70616 (December 23, 2019); 85 FR 15849 
(March 19, 2020); 85 FR 20332 (April 10, 2020); 85 FR 29503 (May15, 
2020); 85 FR 33775 (June 2, 2020); 85 FR 41267 (July 9,2020); 85 FR 
59587 (September 22, 2020); 85 FR 62782 (October 5, 2020).
    \2\ List 2 Notices: 85 FR 45949 (July 30, 2020); 85 FR 59595 
(September 22, 2020); 85 FR 62786 (October 5, 2020).
    \3\ List 3 Notices: 85 FR 48600 (August 11, 2020); 85 FR 57925 
(September 16, 2020); 85 FR 63332 (October 7, 2020).
    \4\ List 4a Notices: 85 FR 54616 (September 2, 2020); 85 FR 
63330 (October 7, 2020).
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B. Possible Reinstatement of Previously Extended Product Exclusions

    The U.S. Trade Representative is considering the possible 
reinstatement of previously extended exclusions granted under the 
notices referenced in notes 1-4 above. Accordingly, USTR invites public 
comments on whether to reinstate particular exclusions that previously 
were extended. Additionally, USTR invites public comments on the 
appropriate length of the reinstated exclusions.
    USTR will evaluate the possible reinstatement of each exclusion on 
a case-by-case basis. The focus of the evaluation will be whether, 
despite the imposition of additional duties beginning in September 
2018, 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 
2018 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 2018 to source the product from the United 
States or third countries.
     Domestic capacity for producing the product in the United 
States.
    In addition, USTR will consider whether or not reinstating the 
exclusion will impact or result in severe economic harm to the 
commenter or other U.S. interests, including the impact on small 
businesses, employment, manufacturing output, and critical supply 
chains in the United States, as well as the overall impact of the 
exclusions on the goal of obtaining the elimination of China's acts, 
policies, and practices covered in the Section 301 investigation.
    USTR will seek advice and consult with the agencies that make up 
the interagency Section 301 Committee, including the Small Business 
Administration.
    Exclusions reinstated pursuant to this review would be retroactive 
with respect to merchandise entered, or withdrawn from warehouse, for 
consumption on or after the opening of the docket on October 12, 2021, 
for which the entries are not liquidated at the time the claim to apply 
the reinstated exclusion is made to U.S. Customs and Border Protection 
in accordance with their procedures.

C. How To Comment on the Reinstatement of Exclusions

    The 549 previously-extended product exclusions can be found in the 
notices cited in notes 1-4 above. For ease of reference, USTR also is 
publishing a list of the previously extended exclusions on its website 
at: https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china-technology-transfer/china-section-301-tariff-actions-and-exclusion-process/reinstatement-certain-exclusions-previously-extended.
    To submit a comment either supporting or opposing the reinstatement 
of a particular exclusion, commenters first must register on the portal 
at https://comments.USTR.gov. As noted above, the public docket on the 
portal will be open for 50 days, starting October 12, 2021. After 
registration, the commenter may submit an exclusion reinstatement 
comment to the public docket.
    A facsimile of the form containing the questions to be addressed on 
the comment docket is available on USTR's website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china-technology-transfer/china-section-301-tariff-actions-and-exclusion-process/reinstatement-certain-exclusions-previously-extended. Set out 
below is a summary of the information to be submitted.
     Contact information, including the full legal name of the 
organization making the comment, and whether the commenter is a third 
party.
     The previously extended exclusion you are commenting on.
     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 reinstating the exclusion 
and an explanation of your rationale.
     Whether the commenter meets the size standard for a small 
business, as established by the Small Business Administration.
     The number of employees your business employs in the 
United States.
     Whether the products covered by the exclusion or 
comparable products are available from sources in the U.S. or in third 
countries.
     The efforts you have undertaken since September 2018 to 
source the product from the U.S. or third countries.
     As a domestic producer, your capacity to produce the 
product in the United States, your production in the United States, 
your efforts to produce domestically, and any constraints.

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     The value and quantity of the Chinese-origin product 
covered by the specific exclusion request purchased over the last three 
years.
     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 over the 
last three years.
     If applicable, the commenter's gross revenues for the last 
three years.
     Whether the Chinese-origin product of concern is sold as a 
final product or as an input.
     Whether or not reinstating the exclusion will result in 
severe economic harm to the commenter or other U.S. interests.
     Whether the additional tariffs had an impact on employment 
at your company.
     Any additional information in support of or in opposition 
to reinstating the exclusion.
    Commenters also may provide any other information or data that they 
consider relevant.

D. Submission Instructions

    To be assured of consideration, you must submit your comment during 
the 50-day period following the opening of the public docket on the 
portal. Parties seeking to comment on more than one exclusion must 
submit a separate comment for each exclusion. USTR's portal allows for 
the submission of Business Confidential Information (BCI). Fields with 
a (BCI) notation are for BCI and the information entered will not be 
publicly available. By submitting a comment, the commenter certifies 
that the information provided is complete and correct to the best of 
their knowledge.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-22062 Filed 10-7-21; 8:45 am]
BILLING CODE 3390-F2-P