[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78187-78188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27637]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Notice of Extensions for Reinstated Product 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 actions being taken 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. In 2022, following 
public notice and comment, the U.S. Trade Representative determined to 
reinstate 352 of these exclusions. These reinstated exclusions are 
scheduled to expire on December 31, 2022. This notice announces the 
U.S. Trade Representative's determination to extend the reinstated 
exclusions for an additional nine months.

DATES: The extensions announced in this notice will apply as of January 
1, 2023, and will extend through September 30, 2023.

FOR FURTHER INFORMATION CONTACT: For general questions about this 
notice, contact Associate General Counsel Philip Butler or Assistant 
General Counsel Edward Marcus at (202) 395-5725. For specific questions 
on customs classification or implementation of the product exclusions, 
contact [email protected].

SUPPLEMENTARY INFORMATION: 

A. Background

    In the course of the investigation into China's acts, policies, and 
practices related to technology transfer, intellectual property, and 
innovation, the U.S. Trade Representative imposed additional duties on 
products of China in four tranches. See 83 FR 28710 (June 20, 2018) 
(the July 6, 2018 action); 83 FR 40823 (August 16, 2018) (the August 
23, 2018 action); 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 List was divided into two tranches, Lists 4A and 4B. 
No tariffs on List 4B are currently in effect.
    For each List, 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

[[Page 78188]]

Representative determined to extend 137 exclusions covered under List 
1, 59 exclusions covered under List 2, 266 exclusions covered under 
List 3, and 87 exclusions covered under List 4. With the exception of 
certain exclusions related to the COVID-19 pandemic, all of these 549 
exclusions 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 (March 19, 2020) and 85 FR 20332 
(April 10, 2020).
    On October 8, 2021, the U.S. Trade Representative invited the 
public to submit comments on whether to reinstate certain exclusions 
previously granted and extended. 86 FR 56345 (October 8, 2021) (the 
October 8 notice). The October 8 notice set out factors to be 
considered in decisions on possible reinstatement, and invited public 
comment. Those factors included whether, despite the imposition of 
additional duties beginning in September 2018, the excluded products 
remain available only from China and whether or not reinstating the 
exclusions would impact or result in severe economic harm to the 
commenter or other U.S. interests.
    Pursuant to Sections 301(b), 301(c), and 307(a) of the Trade Act of 
1974, as amended, on March 28, 2022, the U.S. Trade Representative 
determined to further modify the action by reinstating 352 of the 549 
expired exclusions. The reinstated exclusions applied as of October 12, 
2021, and extend through December 31, 2022. See 87 FR 17380 (March 28, 
2022).
    In accordance with Section 307(c)(3) of the Trade Act of 1974, on 
September 8, 2022, the USTR announced that it would be conducting a 
review of the July 6, 2018 and August 23, 2018 actions, as modified. 
See 87 FR 26797 (May 5, 2022); 87 FR 55073 (September 8, 2022). Section 
307(c) of the Trade Act of 1974 requires the U.S. Trade Representative 
to conduct a review of: (A) the effectiveness in achieving the 
objectives of Section 301 of (i) such action, and (ii) other actions 
that could be taken (including actions against other products or 
services), and (B) the effects of such actions on the United States 
economy, including consumers. See 19 U.S.C. 2417(c)(3)(A) and (B). In a 
notice published on October 17, 2022 (87 FR 62914), USTR announced that 
it was opening a docket on November 15, 2022 (USTR-2022-0014) for 
interested persons to submit comments with respect to any aspect of 
Section 307(c) considerations, including whether certain tariff 
headings should remain covered by the actions.

B. Determination To Extend Exclusions

    Based on a continued consideration of the factors and criteria set 
forth in the October 8 notice, and in light of the ongoing statutory 
four-year review of the July 6, 2018 and August 23, 2018 actions, the 
U.S. Trade Representative has determined to extend the 352 reinstated 
exclusions, as set out in the Annex to this notice. The U.S. Trade 
Representative's determination to extend the reinstated exclusions 
takes into account public comments previously submitted in response to 
the October 8 notice, which indicated that reinstatement of the 
previously extended exclusions was appropriate based on the 
unavailability of particular products outside of China, or possible 
severe economic harm. The determination also takes into account the 
advice of advisory committees and the advice of the interagency Section 
301 Committee.
    Extending the reinstated exclusions will allow the U.S. Trade 
Representative to consider and align, as appropriate, the reinstated 
exclusions with the results of the statutory four-year review of the 
July 6, 2018 and August 23, 2018 actions, as modified. See 87 FR 62914 
(October 17, 2022); 87 FR 55073 (September 8, 2022). Interested persons 
wishing to submit comments on whether certain tariff headings with a 
reinstated product exclusion should remain covered by the actions or 
removed, may submit comments on docket number USTR-2022-0014. Comments 
must be submitted through the online portal (https://comments.USTR.gov) 
by January 17, 2023 at 11:59 p.m. EST.
    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) statistical reporting 
numbers and product descriptions in note 20(ttt) to subchapter III of 
chapter 99 of the HTSUS. The U.S. Trade Representative has determined 
to extend the reinstated exclusions through September 30, 2023, and may 
consider further extensions and/or additional modifications as 
appropriate.
    U.S. Customs and Border Protection will issue instructions on entry 
guidance and implementation.

Annex

    The U.S. Trade Representative has determined to extend all 
exclusions previously reinstated under heading 9903.88.67 and U.S. 
notes 20(ttt)(i), 20(ttt)(ii), 20(ttt)(iii), and 20(ttt)(iv) to 
subchapter III of chapter 99 of the Harmonized Tariff Schedule of the 
United States (HTSUS). See 87 FR 17380 (March 28, 2022). The extension 
is effective with respect to goods entered for consumption, or 
withdrawn from warehouse for consumption, on or after 12:01 a.m. 
eastern standard time on January 1, 2023, and before 11:59 p.m. eastern 
daylight time on September 30, 2023. Effective on January 1, 2023, the 
article description of heading 9903.88.67 of the HTSUS is modified by 
deleting ``December 31, 2022,'' and by inserting ``September 30, 
2023,'' in lieu thereof.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2022-27637 Filed 12-20-22; 8:45 am]
BILLING CODE 3390-F3-P