[Federal Register Volume 87, Number 59 (Monday, March 28, 2022)]
[Notices]
[Pages 17380-17405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06397]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Reinstatement of Certain Exclusions: 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.

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SUMMARY: In prior Federal Register 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. The U.S. Trade Representative subsequently 
extended 549 of these exclusions. Following public notice and comment, 
the U.S. Trade Representative has determined to reinstate certain 
previously extended exclusions through December 31, 2022, as specified 
in the Annex to this notice.

DATES: The reinstated product exclusions announced in this notice will 
apply as of October 12, 2021, and extend through December 31, 2022. 
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 Rachel Hasandras at (202) 395-5725. For specific 
questions on customs classification or implementation of the product 
exclusion identified in the Annex to this notice, contact 
[email protected].

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

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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, 59 exclusions on List 2, 266 
exclusions on List 3, and 87 exclusions on List 4. With the exception 
of exclusions related to the COVID-19 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 in 2021. See 85 FR 15849 and 85 FR 20332. USTR has 
separately addressed the extension of COVID-19 exclusions. See 86 FR 
48280 (August 27, 2021), 86 FR 54011 (September 29, 2021), and 86 FR 
63438 (November 16 2021).
    On October 8, 2021, the U.S. Trade Representative invited the 
public to comment on whether to reinstate particular exclusions 
previously granted and extended under the four tranches (the October 8 
notice). The October 8 notice set out the following factors to be 
considered in decisions on possible reinstatement, and invited public 
comment:
     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 considered whether or not reinstating the 
exclusion would 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.

B. Determination To Reinstate Certain Exclusions

    Based on evaluation of the factors set out in in the October 8 
notice, and pursuant to sections 301(b), 301(c), and 307(a) of the 
Trade Act of 1974, as amended, the U.S. Trade Representative has 
determined to reinstate certain exclusions described in the October 8 
notice through December 31, 2022, as set out in the Annex to this 
notice. The U.S. Trade Representative's determination considers public 
comments submitted in response to the October 8 notice, and the advice 
of advisory committees, the interagency Section 301 Committee, and the 
White House COVID-19 Response Team.
    The reinstated exclusions are available for any product that meets 
the description in the product exclusion. In particular, the scope of 
each exclusion is governed by the scope of the ten-digit Harmonized 
Tariff Schedule of the United States (HTSUS) subheadings and product 
descriptions in the Annex to this notice.
    As stated in the October 8 notice, the reinstated exclusions are 
retroactive to October 12, 2021. In particular, the reinstated 
exclusions will apply to goods entered for consumption, or withdrawn 
from warehouse for consumption, on or after 12:01 a.m. eastern daylight 
time on October 12, 2021, that are not liquidated or to entries that 
are liquidated, but within the period for protest described in section 
514 of the Tariff Act of 1930, as amended. The U.S. Trade 
Representative has determined to extend the reinstated exclusions 
through December 31, 2022, and may consider further extensions as 
appropriate.
    U.S. Customs and Border Protection will issue instructions on entry 
guidance and implementation.

Greta M. Peisch,
General Counsel, Office of the United States Trade Representative.
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[FR Doc. 2022-06397 Filed 3-25-22; 8:45 am]
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