[Federal Register Volume 87, Number 87 (Thursday, May 5, 2022)]
[Notices]
[Pages 26797-26798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09688]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Initiation of Four-Year Review Process: China's Acts, Policies, 
and Practices Related to Technology Transfer, Intellectual Property, 
and Innovation

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: The U.S. Trade Representative is commencing the statutory 
four-year review of the two actions taken under Section 301 of the 
Trade Act of 1974, as amended, in the investigation of China's Acts, 
Policies, and Practices Related to Technology Transfer, Intellectual 
Property, and Innovation. The two actions were effective, respectively, 
on July 6, 2018 and August 23, 2018, and subsequently were modified by 
imposing additional duties on supplemental lists of products, as well 
as by the temporary removal of duties on certain products through 
product exclusions. The first step in the four-year review process is 
notifying representatives of domestic industries which benefit from the 
trade actions, as modified, of the possible termination of the actions, 
and of the opportunity for these representatives to request 
continuation of the actions. Requests for continuation must be received 
in the 60-day window prior to the four-year anniversary of the 
respective action: Between May 7, 2022, and July 5, 2022, for the July 
6, 2018 action, and between June 24, 2022, and August 22, 2022, for the 
August 23, 2018, action. The Office of the United States Trade 
Representative (USTR) is opening dockets in these two time windows for 
representatives of domestic industries which benefit from the trade 
actions to request continuation of the corresponding trade actions, as 
modified. If the actions continue as a result of one or more requests 
from representatives of domestic industries which benefit from the 
trade actions, USTR will proceed with the next phase of the review. The 
second phase of the review will be announced in one or more subsequent 
notices, and will provide opportunities for public comments from all 
interested parties.

DATES: For the July 6, 2018 trade action, the web portal at https://comments.ustr.gov/s/ will open for requests to continue the action on 
May 7, 2022, and close at 11:59 p.m. on July 5, 2022. For the August 
23, 2018 trade action, the web portal at https://comments.ustr.gov/s/ 
will open for requests to continue the action on June 24, 2022, and 
close at 11:59 p.m. on August 22, 2022.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
contact Assistant General Counsels Megan Grimball or Philip Butler at 
(202) 395-5725.

SUPPLEMENTARY INFORMATION:

A. Background

    On August 24, 2017, the U.S. Trade Representative initiated an 
investigation into certain acts, policies, and practices of the 
Government of China related to technology transfer, intellectual 
property, and innovation. 82 FR 40213.
    In a notice published on April 6, 2018 (83 FR 14906), the U.S. 
Trade Representative announced a determination that the acts, policies, 
and practices of the Government of China covered in the investigation 
are unreasonable or discriminatory and burden or restrict U.S. 
commerce. The April 6 notice also invited public comment on a proposed 
action in the investigation, in the form of an additional 25 percent ad 
valorem duty on products of China classified in a list of 1,333 tariff 
subheadings, with an annual trade value of approximately $50 billion.

1. Actions Taken Under Section 301 of the Trade Act

    Following a period of public notice and comment, the U.S. Trade 
Representative determined to take action under Section 301 of the Trade 
Act of 1974, as amended (Trade Act) (19 U.S.C. 2411) in the form of 
additional duties of 25 percent ad valorem on 818 of the proposed 
tariff subheadings, with an approximate annual trade value of $34 
billion, effective July 6, 2018 (List 1). 83 FR 28710 (hereinafter 
referred to as the July 6, 2018, action).
    The U.S. Trade Representative also proposed further action in the 
form of additional ad valorem duties of 25 percent on a list of 284 
tariff subheadings with an approximate annual trade value of $16 
billion. Following a period of notice and comment, the U.S. Trade 
Representative determined to take action under Section 301 in the form 
of additional duties of 25 percent on 279 tariff subheadings with an 
approximate annual trade value of $16 billion, effective August 23, 
2018 (List 2). 83 FR 40823 (hereinafter referred to as the August 23, 
2018, action).

2. Subsequent Modifications Under Section 307

    The U.S. Trade Representative subsequently modified the July 6, 
2018, and August 23, 2018, actions, pursuant to authority under Section 
307(a) of the Trade Act. (19 U.S.C. 2417(a)). These modifications were 
in the form of (i) additional duties on supplemental lists of products, 
and (ii) the temporary removal of duties on certain products through 
product exclusions.
    The modifications to the July 6, 2018, and August 23, 2018, actions 
that are currently in effect are as follows:
    a. List 3--83 FR 47974 (September 21, 2018), as modified by 84 FR 
20459 (May 9, 2019), and as amended by 84 FR 21892 (May 15, 2019); 84 
FR 26930 (June 10, 2019); 86 FR 22092 (April 26, 2021); and 84 FR 9785 
(February 22, 2022);
    b. List 4A--84 FR 43304 (August 20, 2019), as modified by 84 FR 
45821 (August 30, 2019), 84 FR 69447 (December 18, 2019), and 85 FR 
3741 (January 22, 2020);
    c. COVID Exclusions--86 FR 63438 (November 16, 2021), as amended: 
By 86 FR 69350 (December 7, 2021) and 87 FR 4704 (January 28, 2022): 
and
    d. Reinstated Exclusions--87 FR 17380 (March 28, 2022).
    In the four-year review, USTR will examine the July 6, 2018, 
action, as modified, and August 23, 2018, action, as modified. To 
ensure comprehensive coverage of the review, USTR will consider the 
List 3 and List 4A modifications as applicable to both the July 6, 
2018, action and August 23, 2018, action.

B. First Phase of the Four-Year Review

    The first phase in the four-year review process involves 
notification to representatives of domestic industries which benefit 
from the two trade actions under Section 301, as modified, of the 
possible termination of the actions, and of the opportunity for these 
representatives to request continuation of the actions. See Section 
307(c)(2) of the Trade Act (19 U.S.C. 2417(c)(2)). USTR is providing 
this notice by two different means. First, USTR is mailing notices to 
interested parties that previously submitted comments on the dockets in 
this investigation expressing support for the actions under Section 301 
or subsequent modifications under Section 307. Second, by way of this 
notice, USTR is notifying all representatives of domestic industries 
which benefit from the two trade actions under Section 301, as 
modified, of the possible termination of the actions, as modified, and 
of the opportunity for these representatives to request continuation of 
the actions. Regardless of the means of notification, representatives 
of domestic industries that benefit from either trade action under 
Section 301, as modified, should

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submit requests for continuation through the USTR portal, during the 
respective time periods for the July 6, 2018 action, and the August 23, 
2018 action.

C. Notification to Representatives of Domestic Industries That Benefit 
From Either Trade Action Under Section 301

    USTR is providing the following notice to representatives of 
domestic industries which benefit from the July 6, 2018, action under 
Section 301, as modified, or the August 23, 2018, action under Section 
301, as modified:
     Section 307(c)(1) of the Trade Act (19 U.S.C. 2417(c)(1)) 
provides that if--(A) a particular action has been taken under section 
301 during any 4-year period, and (B) neither the petitioner nor any 
representative of the domestic industry which benefits from such action 
has submitted to the U.S. Trade Representative during the last 60 days 
of such 4-year period a written request for the continuation of such 
action, such action shall terminate at the close of such 4-year period.
     The investigation was self-initiated by the U.S. Trade 
Representative, and thus no petitioner is involved.
     This investigation involves two actions under Section 301: 
The July 6, 2018 action, as modified, and the August 23, 2018 action, 
as modified.
     Under Section 307(c)(1)(B) of the Trade Act (19 U.S.C. 
2417(c)(1)(B)), the July 6, 2018 action under Section 301, as modified, 
and the August 23, 2018 action under Section 301, as modified, will 
terminate on their respective four-year anniversary dates (i.e., July 
6, 2022 and August 23, 2022, respectively) unless a representative of a 
domestic industry which benefits from the respective action submits in 
the 60-day period prior to the four-year anniversary of the respective 
action a request that the action continue.
     Representatives of a domestic industry which benefits from 
either of the two actions under Section 301, as modified, may submit a 
request for continuation of an action through the USTR portal, as 
detailed in this notice.
     Representatives of a domestic industry which benefits from 
both of the trade actions under Section 301, as modified, should submit 
two separate requests for continuation within the two respective 60-day 
time periods.

D. Submission of Requests To Continue the Action

    Representatives of a domestic industry that benefits from either of 
the two actions under Section 301, as modified, may submit a request to 
continue the July 6, 2018 action, as modified, and the August 23, 2018 
action, as modified, using the portal corresponding to the trade action 
at https://comments.ustr.gov/s/, according to the following schedule:
     For the July 6, 2018 action, any representative of a 
domestic industry which benefits from the action, as modified, may 
submit a request to continue the action between May 7, 2022, and July 
5, 2022.
     For the August 23, 2018 action, any representative of 
domestic industries benefitting from the action, as modified, may 
submit a request to continue the action between June 24, 2022, and 
August 22, 2022.
    Fields marked with an asterisk (*) are required fields. A request 
to continue the action should identify the specific industry concerned 
and should address how the domestic industry benefits from the July 6, 
2018 action or August 23, 2018 action, as modified. If a representative 
of a domestic industry which benefits from an action wishes to receive 
business confidential treatment for its request to continue the action, 
please contact USTR at the number specified above. Requests to continue 
the action will not be posted immediately, but will be summarized in 
the notices announcing whether the two trade actions under Section 301 
will be continued.

E. Second Phase of the Review

    USTR will announce in subsequent notices whether it has received a 
request for continuation from a representative of a domestic industry 
which benefits from an action. If USTR receives such a request, the 
U.S. Trade Representative will announce the continuation of the action, 
and will undertake a review of the action as described in Section 
307(c)(3) of the Trade Act (19 U.S.C. 2417(c)(3)). As part of that 
review, USTR intends to open a separate portal for interested persons 
to submit comments on, among other matters, the effectiveness of the 
action in achieving the objectives of Section 301, other actions that 
could be taken, and the effects of such actions on the United States 
economy, including consumers.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2022-09688 Filed 5-4-22; 8:45 am]
BILLING CODE 3290-F2-P