Notice2022-27637
Notice of Extensions for Reinstated Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
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Published
December 21, 2022
Issuing agencies
Trade Representative, Office of United States
Abstract
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.
Full Text
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<title>Federal Register, Volume 87 Issue 244 (Wednesday, December 21, 2022)</title>
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[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78187-78188]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="/cdn-cgi/l/email-protection#394d4b585d5c4b5c545c5d40795a5b49175d514a175e564f"><span class="__cf_email__" data-cfemail="26525447424354434b43425f6645445608424e5508414950">[email protected]</span></a>.
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 (<a href="https://comments.USTR.gov">https://comments.USTR.gov</a>)
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
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