[Federal Register Volume 89, Number 185 (Tuesday, September 24, 2024)]
[Notices]
[Pages 77958-77959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21773]



[[Page 77958]]

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Request for Comments on Proposed Modifications: China's Acts, 
Policies and Practices Related to Technology Transfer, Intellectual 
Property and Innovation

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Request for comments.

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SUMMARY: In a notice published on September 18, 2024, the U.S. Trade 
Representative announced certain modifications to the actions taken in 
the Section 301 investigation of China's acts, policies, and practices 
related to technology transfer, intellectual property, and innovation, 
including imposing additional Section 301 duties or increasing the rate 
of existing Section 301 duties, on certain products of China in 
strategic sectors. Additionally, the U.S. Trade Representative proposed 
increasing Section 301 tariff rates on five subheadings of the 
Harmonized Tariff Schedule of the United States (HTSUS) covering 
certain tungsten products, wafers, and polysilicon. This notice 
announces that USTR will open an electronic portal on September 23, 
2024 for interested parties to submit comments on the proposed tariff 
increases for the five subheadings.

DATES: September 23, 2024, at 12:01 a.m. EDT: The public docket on the 
web portal at https://comments.ustr.gov will open for interested 
persons to submit comments on the proposed additional modifications.
    October 22, 2024, at 11:59 p.m. EST: To be assured of 
consideration, submit written comments on the public docket by this 
date.

FOR FURTHER INFORMATION CONTACT: For general questions about this 
notice, contact Philip Butler and Megan Grimball, Chairs of the Section 
301 Committee at 202.395.5725. For specific questions on customs 
classification, contact [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    For background on the proceedings in this investigation, please see 
the prior notices including 82 FR 40213 (August 24, 2017), 83 FR 14906 
(April 6, 2018), 83 FR 28710 (July 6, 2018), and 83 FR 40823 (August 
23, 2018).
    On September 8, 2022, USTR announced that in accordance with 
Section 307(c)(3) of the Trade Act (19 U.S.C. 2417(c)(3)), the U.S. 
Trade Representative would conduct a review of the two actions taken, 
as modified, in this investigation. See 87 FR 55073.
    Based on information obtained during the review, USTR, in 
consultation with the Section 301 Committee, prepared a comprehensive 
report that included findings on the effectiveness of the actions taken 
in this investigation in achieving the objectives of the investigation, 
other actions that could be taken, and the effects of such actions on 
the United States economy, including consumers. The report, Four-Year 
Review of Actions Taken in the Section 301 Investigation: China's Acts, 
Policies, and Practices Related to Technology Transfer, Intellectual 
Property, and Innovation (Report), was published on May 14, 2024, and 
is available on the USTR website.
    On May 14, 2024, taking into consideration the U.S. Trade 
Representative's findings in the Report and recommendations, the 
President issued a Memorandum (President's Memorandum) that directed 
the U.S. Trade Representative to: ``maintain, as appropriate and 
consistent with this memorandum, the ad valorem rates of duty and lists 
of products subject to the [actions] taken under the Section 301 
investigation'' and ``[t]o further encourage China to eliminate the 
acts, policies, and practices at issue, and to counteract the burden or 
restriction of these acts, policies, and practices, the Trade 
Representative shall modify the [actions taken in the investigation] to 
increase Section 301 ad valorem rates of duty'' for certain specified 
products of China. See https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/14/memorandum-on-actions-by-the-united-states-related-to-the-statutory-4-year-review-of-the-section-301-investigation-of-chinas-acts-policies-and-practices-related-to-technology-transfer-intellectua/. In particular, the President's 
Memorandum specified 14 categories of products for proposed tariff 
increases, tariff rates for those products, and year for tariff 
increases.
    The President also directed the U.S. Trade Representative to 
establish a process by which interested persons may request that 
particular machinery used in domestic manufacturing classified within a 
subheading under Chapters 84 and 85 of the HTSUS be temporarily 
excluded from Section 301 tariffs, and directed the U.S. Trade 
Representative to prioritize, in particular, exclusions for certain 
solar manufacturing equipment.

B. Proposed Modifications

    Consistent with the President's direction, USTR issued a Federal 
Register notice with proposed modifications, including proposed 
increases in Section 301 duties on 382 HTSUS subheadings and 5 
statistical reporting numbers of the HTSUS, with an approximate annual 
trade value of $18 billion (2023). See 89 FR 46252 (May 28, 2024) (May 
28 notice).
    In accordance with Section 307(a)(2) of the Trade Act (19 U.S.C. 
2417(a)(2)), USTR invited comments from interested persons and opened a 
30-day docket on May 29, 2024 (USTR-2024-0007). With respect to the 
proposed tariff increases, USTR requested commenters to address the 
effectiveness of the proposed modification, the effects of the proposed 
modification on the U.S. economy, including consumers, and whether the 
tariff subheadings or statistical reporting numbers identified for each 
product or sector adequately cover the products and sectors included in 
the President's direction to the U.S. Trade Representative.
    On September 18, 2024, the U.S. Trade Representative announced 
modifications to the actions, including certain adjustments to the 
modifications proposed in the May 28 notice. See 89 FR 76581 (September 
18 notice). Additionally, and based on comments requesting that certain 
HTSUS subheadings be added to the 382 HTSUS subheadings proposed for 
tariff increases, the U.S. Trade Representative proposed increasing 
Section 301 duties on 5 additional HTSUS subheadings. Specifically, the 
U.S. Trade Representative proposed increasing tariffs to 25 percent for 
3 subheadings covering certain tungsten products and proposed 
increasing tariffs to 50 percent for 2 subheadings covering wafers and 
polysilicon. See 89 FR 76581. The September 18 notice also announced 
that USTR would publish a separate notice with procedures for 
interested parties to provide views on the five subheadings proposed 
for tariff increases.
    The five subheadings proposed for tariff increases are:
     8101.94.00 (Tungsten, unwrought (including bars and rods 
obtained simply by sintering)).
     8101.99.10 (Tungsten bars and rods (o/than those obtained 
simply by sintering), profiles, plates, sheets, strip and foil).
     8101.99.80 (Tungsten, articles nesoi).
     2804.61.00 (Silicon containing by weight not less than 
99.99 percent of silicon).
     3818.00.00 (Chemical elements doped for use in 
electronics, in the form of discs, wafers etc., chemical compounds 
doped for electronic use).

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C. Request for Public Comments

    In accordance with Section 307(a)(2) of the Trade Act (19 U.S.C. 
2417(a)(2)), USTR invites comments from interested persons with respect 
to the proposed modifications. To be assured of consideration, you must 
submit written comments by October 22, 2024. With respect to USTR's 
proposed tariff increases on the five subheadings listed in Section B, 
interested persons are invited to comment on:
     The extent to which the proposed modification would 
enhance the effectiveness of the tariff actions in obtaining the 
elimination of or in counteracting China's acts, policies, and 
practices related to technology transfer, intellectual property and 
innovation.
     The likely effects of the proposed modification on the 
U.S. economy, including consumers.

D. Procedures for Written Submissions

    You must submit written comments using the appropriate docket on 
the portal at https://comments.ustr.gov/. To submit written comments, 
use the docket on the portal entitled Request for Comments: Proposed 
Modifications to the Section 301 Actions, docket number USTR-2024-0016. 
You do not need to establish an account to submit comments. The first 
screen of the docket allows you to enter identification and contact 
information. Third party organizations such as law firms, trade 
associations, or customs brokers, should identify the full legal name 
of the organization they represent, and identify the primary point of 
contact for the submission. Information fields are optional; however, 
your comment may not be considered if insufficient information is 
provided.
    Fields with a gray Business Confidential Information (BCI) notation 
are for BCI that will not be made publicly available. Fields with a 
green (Public) notation will be viewable by the public.
    After entering the identification and contact information, you can 
complete the remainder of the comment, or any portion of it by clicking 
`Next.' You may upload documents at the end of the form and indicate 
whether USTR should treat the documents as business confidential or 
public information.
    Clearly mark any page containing BCI as `BUSINESS CONFIDENTIAL' on 
the top of that page and clearly indicate, via brackets, highlighting, 
or other means, the specific information that is BCI. If you request 
business confidential treatment, you must certify in writing that the 
information would not customarily be released to the public.
    Parties uploading attachments containing BCI also must submit a 
public version of their comments. If these procedures are not 
sufficient to protect BCI or otherwise protect business interests, 
please contact the USTR Section 301 support line at 202.395.5725 to 
discuss whether alternative arrangements are possible. USTR will post 
attachments uploaded to the docket for public inspection, except for 
properly designated BCI. You can view submissions on USTR's electronic 
portal at https://comments.ustr.gov.

Juan Millan,
Acting General Counsel, Office of the United States Trade 
Representative.
[FR Doc. 2024-21773 Filed 9-23-24; 8:45 am]
BILLING CODE 3390-F4-P