84 FR 26930 - Additional Implementing Modification to Section 301 Action: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

In a notice published on May 9, 2019 (May 9 Notice), the U.S. Trade Representative (Trade Representative) increased the rate of additional duty from 10 percent to 25 percent for the products of China covered by the September 2018 action that are (i) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to the United States on or after May 10, 2019. An implementing notice published on May 15, 2019 (May 15 Notice), provided that products of China that are covered by the September 2018 action and that were exported to the United States prior to May 10, 2019, are not subject to the additional duty of 25 percent, as long as these products are entered into the United States prior to June 1, 2019. This notice extends the June 1, 2019 date to June 15, 2019.

[Federal Register Volume 84, Number 111 (Monday, June 10, 2019)]
[Notices]
[Pages 26930-26931]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-12104]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Additional Implementing Modification to Section 301 Action: 
China's Acts, Policies, and Practices Related to Technology Transfer, 
Intellectual Property, and Innovation

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of additional implementing modification.

-----------------------------------------------------------------------

SUMMARY: In a notice published on May 9, 2019 (May 9 Notice), the U.S. 
Trade Representative (Trade Representative) increased the rate of 
additional duty from 10 percent to 25 percent for the products of China 
covered by the September 2018 action that are (i) entered for 
consumption, or withdrawn from warehouse for consumption, on or after 
12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to 
the United States on or after May 10, 2019. An implementing notice 
published on May 15, 2019 (May 15 Notice), provided that products of 
China that are covered by the September 2018 action and that were 
exported to the United States prior to May 10, 2019, are not subject to 
the additional duty of 25 percent, as long as these products are 
entered into the United States prior to June 1, 2019. This notice 
extends the June 1, 2019 date to June 15, 2019.

DATES: HTSUS heading 9903.88.09, set out in the Annex to the May 15 
Notice and as amended by the Annex to this notice, applies to products 
of China covered by the September 2018 action that were exported before 
May 10, 2019, and entered into the United States on or after May 10, 
2019, and before June 15, 2019. The modification in the Annex to this 
notice applies as of June 1, 2019.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
contact Associate General Counsel Arthur Tsao or Assistant General 
Counsel Juli Schwartz, or Director of Industrial Goods Justin Hoffmann 
at (202) 395-5725. For questions on customs classification or 
implementation of additional duties on products covered in the 
supplemental action, contact [email protected].

SUPPLEMENTARY INFORMATION: In the May 9 Notice (84 FR 20459), the Trade 
Representative modified the action being taken in the Section 301 
investigation by increasing the rate of additional duty from 10 percent 
to 25 percent for the products of China covered by the September 2018 
action in this investigation. The `September 2018 action' refers to the 
additional duties on products of China with an annual trade value of 
approximately $200 billion, published at 83 FR 47974 (Sep. 21, 2018), 
as modified by the notice published at 83 FR 49153 (September 28, 
2018). Pursuant to the May 9 Notice, the increase in the rate of 
additional duty was effective on May 10, 2019.
    The May 15 Notice (84 FR 21892) implemented the increase in the 
rate of additional duty by creating a new subheading in Chapter 99 of 
the Harmonized Tariff Schedule of the United States (HTSUS) 
(9903.88.09) for products of China covered by the September 2018 action 
that were exported before May 10, 2019, and entered into the United 
States on or after May 10, 2019 and before June 1, 2019. HTSUS heading 
9903.88.09 was limited to covered products of China entered into the 
United States during this period of time to account for customs 
enforcement factors and the average transit time between China and the 
United States by sea.
    To account further for customs enforcement factors and the transit 
time for goods exported from China on or before May 10, 2019, and 
imported directly to the United States, the Trade Representative has 
determined to extend the June 1, 2019 date to June 15, 2019, as 
specified in the Annex to this notice. Thus, HTSUS 9903.88.09 applies 
to products of China covered by the September 2018 action that were 
exported from China before May 10, 2019, imported directly to the 
United States from China and entered for consumption, or withdrawn from 
warehouse for consumption, on or after May 10, 2019 and before June 15, 
2019. The modification in the Annex to this notice applies as of June 
1, 2019.
    The products of China covered by the September 2018 action that are 
admitted into a foreign-trade zone (FTZ) in `Privileged Foreign' status 
shall retain that status consistent with 19 CFR 146.41(e) and will be 
subject, at the time of entry for consumption, to the

[[Page 26931]]

additional duty rate that was in effect at the time of FTZ admission of 
said product.
    U.S. Customs and Border Protection will issue instructions on entry 
guidance and implementation.

Annex

    Effective with respect to goods: (1) Exported to the United States 
before May 10, 2019; and (2) entered for consumption, or withdrawn from 
warehouse for consumption, on or after 12:01 a.m. eastern daylight time 
on May 10, 2019, and entered for consumption, or withdrawn from 
warehouse for consumption, before June 15, 2019, the Harmonized Tariff 
Schedule of the United States is modified:
    1. By amending the second paragraph of note 20(l) to subchapter III 
of chapter 99 by deleting ``June 1,'' and inserting in lieu thereof 
``June 15,''; and
    2. by amending the article description of heading 9903.88.09 by 
deleting ``June 1,'' and inserting in lieu thereof ``June 15,''.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
[FR Doc. 2019-12104 Filed 6-7-19; 8:45 am]
 BILLING CODE 3290-F9-P