Notice2024-23880
Procedures for Requests To Exclude Certain Machinery Used in Domestic Manufacturing From Actions Pursuant to the Section 301 Investigation of China's Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation
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Published
October 17, 2024
Issuing agencies
Trade Representative, Office of United States
Abstract
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. Additionally, the U.S. Trade Representative announced 14 temporary exclusions for solar manufacturing equipment and a list of subheadings eligible for consideration of temporary exclusion under an exclusion process for certain machinery used in domestic manufacturing. This notice announces that USTR will open an electronic portal for exclusion requests on October 15, 2024, and sets out the procedures for submitting requests.
Full Text
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<title>Federal Register, Volume 89 Issue 201 (Thursday, October 17, 2024)</title>
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[Federal Register Volume 89, Number 201 (Thursday, October 17, 2024)]
[Notices]
[Pages 83755-83757]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23880]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Procedures for Requests To Exclude Certain Machinery Used in
Domestic Manufacturing From Actions Pursuant to the Section 301
Investigation of 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 and 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.
Additionally, the U.S. Trade Representative announced 14 temporary
exclusions for solar manufacturing equipment and a list of subheadings
eligible for consideration of temporary exclusion under an exclusion
process for certain machinery used in domestic manufacturing. This
notice announces that USTR will open an electronic portal for exclusion
requests on October 15, 2024, and sets out the procedures for
submitting requests.
DATES:
October 15, 2024, at 12:01 a.m. EDT: The web portal for submitting
exclusion requests will open at <a href="https://comments.ustr.gov">https://comments.ustr.gov</a>.
March 31, 2025, at 11:59 p.m. EST: Deadline for submitting
exclusion requests. Responses to individual exclusion requests are due
30 days after the exclusion request is posted on USTR's online portal.
Any replies to responses to an exclusion request are due the later of
15 days after the posting of a response, or 15 days after the closing
of the 30-day response period.
ADDRESSES: You must submit all requests, responses to requests, and
replies to responses through the online portal: <a href="https://comments.ustr.gov">https://comments.ustr.gov</a>.
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 <a href="/cdn-cgi/l/email-protection#11656370757463747c747568517273613f7579623f767e67"><span class="__cf_email__" data-cfemail="b2c6c0d3d6d7c0d7dfd7d6cbf2d1d0c29cd6dac19cd5ddc4">[email protected]</span></a>.
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-
[[Page 83756]]
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/.
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 Harmonized Tariff Schedule
of the United States (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 certain products. See 89 FR 46252
(May 28, 2024) (May 28 notice). Additionally, the U.S. Trade
Representative proposed 312 subheadings eligible for consideration for
temporary exclusion under a process by which interested persons may
request that particular machinery used in domestic manufacturing and
classified within certain subheadings under chapters 84 and 85 of HTSUS
be temporarily excluded. The May 28 notice announced that procedures
for requesting exclusions under this process would be published in a
separate notice. Finally, the U.S. Trade Representative proposed 19
temporary exclusions for solar manufacturing equipment.
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
machinery exclusion process, USTR requested comments on whether the 312
subheadings proposed should or should not be eligible for consideration
in the machinery exclusion process and whether certain subheadings
under Chapters 84 and 85 that cover machinery used in domestic
manufacturing were omitted and should be included.
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). Regarding the 19 proposed temporary exclusions for solar
manufacturing equipment, the U.S. Trade Representative determined to
adopt 14. The U.S. Trade Representative also announced five additional
subheadings to be eligible for consideration of temporary exclusion
under the machinery exclusion process. See 89 FR 76581.
C. Procedures To Request the Exclusion of Particular Machinery Used in
Domestic Manufacturing
USTR invites interested persons, including trade associations, to
submit requests for temporary exclusion from the Section 301 tariffs.
The subheadings eligible for consideration of temporary exclusion under
the machinery exclusion process are set forth in Annex E of the
September 18 notice.
As explained in more detail below, each request specifically must
identify a particular product, and provide supporting data and the
rationale for the requested exclusion. USTR will evaluate each request
on a case-by-case basis, taking into account the asserted rationale for
the exclusion, whether the exclusion would undermine the objective of
the Section 301 investigation, and whether the request defines the
product with sufficient precision. Any exclusion will be effective
starting from the date of publication of the exclusion determination in
the Federal Register and will extend through May 31, 2025. USTR is
accepting exclusion requests on a rolling basis and will periodically
announce decisions on pending requests.
The U.S. Trade Representative will monitor exclusions granted and
the overall impact of exclusions, including the 14 temporary exclusions
for solar manufacturing equipment announced in the September 28 notice,
and the product specific exclusions extended on May 30, 2024,\1\ in
maintaining the appropriate amount of leverage with China to encourage
China to eliminate the acts, policies, and practices covered in the
Section 301 investigation.
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\1\ Notice of Extension of Certain Exclusions, 89 FR 46948 (May
30, 2024).
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Set out below is a summary of the information to be entered on the
exclusion request form. Each requester must provide contact
information, including the full legal name of the organization making
the request, whether the requester is a third party (law firm, trade
association, or customs broker) submitting on behalf of an organization
or industry, and the primary point of contact (requester and/or third-
party submitter). The requester may report whether the requester's
business satisfies the Small Business Administration's size standard
for a small business, which are identified by North American Industry
Classification Systems Codes and are found in 13 CFR 121.201. With
regard to product identification, any request for exclusion must
include the following information:
<bullet> The 10-digit subheading of the HTSUS applicable to the
manufacturing equipment requested for exclusion. If no 10-digit
subheading is available (i.e., the 8-digit subheading does not contain
breakouts at the 10-digit level), requesters should use the 8-digit
subheading and add ``00''.
<bullet> A complete and detailed description of the manufacturing
equipment. A detailed description of the manufacturing equipment
includes, but is not limited to, its physical characteristics (e.g.,
dimensions, weight, material composition, etc.), whether the
manufacturing equipment is designed to function in or with a particular
machine (application), the manufacturing equipment's principal use, the
unit value of the manufacturing equipment (please provide a range if
necessary), and any unique physical features that distinguish it from
other manufacturing equipment within the covered 10-digit HTSUS
subheading. Requesters may attach images and specification sheets, CBP
rulings, court decisions, and previous import documentation.
<bullet> Whether the manufacturing equipment of concern is subject
to an antidumping or countervailing duty order issued by the U.S.
Department of Commerce.
<bullet> Whether the manufacturing equipment will be used for
domestic manufacturing, how the equipment will be used, and the
manufacturing sector.
<bullet> If applicable, documents showing grant funding from, or
grant application to, a federal investment program related to the
domestic manufacturing at issue, such as the Inflation Reduction Act
(IRA), CHIPS and Science Act, Build America Buy America (BABA), and
Rural Energy for America Program (REAP).
<bullet> Whether the manufacturing equipment of concern, or
comparable manufacturing equipment, is available from sources in the
United States or third countries and any attempts of the requesting
organization to source the manufacturing equipment from the United
States or third countries.
<bullet> Whether the requesting organization has purchased the
manufacturing equipment of concern from a source in the United States
or in a third country in the past five years and why the manufacturing
equipment is no longer available from this source.
<bullet> Whether the manufacturing equipment of concern is
strategically important or related to ``Made in China
[[Page 83757]]
2025'' or other Chinese industrial programs.
In addressing each factor, the requester should provide support for
their assertions. Requesters also may provide any other information or
data that they consider relevant to an evaluation of the request.
D. Responses To Requests for Exclusions
After a request for exclusion of a particular product is posted on
USTR's online portal, interested persons will have 30 days to respond
to the request, indicating support or opposition and providing reasons
for their view. A response to a product exclusion request must be
submitted using USTR's online portal at <a href="http://comments.USTR.gov">http://comments.USTR.gov</a>.
Responses to exclusion requests, supporting or opposing, will be
publicly available. To file a response, an interested party does not
have to register. Responses may be in support of an exclusion request
or in opposition. If the response is in support of the request, the
rationale should be provided in the applicable field on the portal. If
opposing the exclusion request, interested parties must address the
following in a supplemental attachment available on USTR's comment
portal:
<bullet> Their relationship to the manufacturing equipment
identified (manufacturer, industry association, other).
<bullet> Reasons for objecting to the exclusion request.
<bullet> Whether the manufacturing equipment is currently
manufactured in the United States or third countries, and the
substitutability of equipment from the United States or third country
sources as compared to the Chinese-origin manufacturing equipment
identified in the exclusion request.
<bullet> A description of the manufacturing equipment from the
United States or third country sources relative to the description
cited in the exclusion request.
<bullet> Whether the objecting organization within the last two
years attempted to sell, or successfully sold, the manufacturing
equipment described in the exclusion request, or comparable
manufacturing equipment, to the organization requesting the exclusion.
E. Replies to Responses To Requests for Exclusions
After a response is posted on USTR's online portal, the requester
will have the opportunity to reply to the response using the same
portal. Any reply must be submitted within the later of 15 days after
the posting of a response, or 15 days after the closing of the 30-day
response period. A reply to a response must be submitted using USTR's
online portal at <a href="http://comments.USTR.gov">http://comments.USTR.gov</a>. Replies to responses will be
publicly available.
F. Submission Instructions
As noted above, interested persons must submit requests for
exclusions in the period between the opening of the portal on October
15, 2024, and the March 31, 2025 submission deadline. Any responses to
those requests must be submitted within 30 days after the requests are
posted. Any reply to a response must be submitted within 15 days after
the response is posted. Interested persons seeking to exclude two or
more pieces of manufacturing equipment must submit a separate request
for each product, i.e., one product per request. By submitting an
exclusion request, a response, or a reply, the submitter certifies that
the information provided is complete and correct to the best of his or
her knowledge.
You must submit written comments using the appropriate docket on
the portal at <a href="https://comments.ustr.gov/">https://comments.ustr.gov/</a>. To submit written comments,
use the docket on the portal entitled Temporary Exclusions for
Machinery Used in Domestic Manufacturing, docket number USTR-2024-0020.
To submit an exclusion request, requesters must first register on the
portal at <a href="http://comments.USTR.gov">http://comments.USTR.gov</a>. As noted above, the portal will
open on October 15, 2024, at 12:01 a.m. EDT. After registration, the
requester can fill out and submit one or more exclusion request forms.
Fields on the exclusion request form marked with an asterisk (*) are
required fields.
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. Additionally,
parties will be able to upload documents and indicate whether the
documents are BCI or public. Requesters will be able to review the
public version of their submission before the submission is posted.
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 <a href="https://comments.ustr.gov">https://comments.ustr.gov</a>.
G. Paperwork Reduction Act
In accordance with the requirements of the Paperwork Reduction Act
of 1995 (PRA) and its implementing regulations, USTR submitted a
request to the Office of Management and Budget to reinstate an expired
information collection request (ICR) titled 301 Exclusion Requests,
control number 0350-0015, which is now due to expire on September 30,
2027.
Juan Millan,
Acting General Counsel, Office of the United States Trade
Representative.
[FR Doc. 2024-23880 Filed 10-16-24; 8:45 am]
BILLING CODE 3390-F4-P
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