Notice2022-09688
Initiation of Four-Year Review Process: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
Primary source
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Published
May 5, 2022
Issuing agencies
Trade Representative, Office of United States
Abstract
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.
Full Text
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[Federal Register Volume 87, Number 87 (Thursday, May 5, 2022)]
[Notices]
[Pages 26797-26798]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a> 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 <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>
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
[[Page 26798]]
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:
<bullet> 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.
<bullet> The investigation was self-initiated by the U.S. Trade
Representative, and thus no petitioner is involved.
<bullet> This investigation involves two actions under Section 301:
The July 6, 2018 action, as modified, and the August 23, 2018 action,
as modified.
<bullet> 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.
<bullet> 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.
<bullet> 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 <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>, according to the following schedule:
<bullet> 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.
<bullet> 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
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