83 FR 47236 - Procedures To Consider Requests for Exclusion of Particular Products From the Additional Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Federal Register Volume 83, Issue 181 (September 18, 2018)
Federal Register Volume 83, Issue 181 (September 18, 2018)
| Page Range | 47236-47238 | |
| FR Document | 2018-20246 |
[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)] [Notices] [Pages 47236-47238] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-20246] ======================================================================= ----------------------------------------------------------------------- OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket Number USTR-2018-0032] Procedures To Consider Requests for Exclusion of Particular Products From the Additional Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation AGENCY: Office of the United States Trade Representative. ACTION: Notice and request for comments. ----------------------------------------------------------------------- SUMMARY: In a notice published on August 16, 2018 (83 FR 40823), the U.S. Trade Representative (Trade Representative) determined to take an additional action in the Section 301 investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The August 16 notice also announced that the Trade Representative would establish a process by which U.S. stakeholders may request that particular products classified within a tariff subheading covered by the additional action be excluded from the additional duties. This notice sets out the specific procedures and criteria related to requests for product exclusions, and opens up a docket for the receipt of exclusion requests. DATES: USTR must receive all requests to exclude a particular product by December 18, 2018. Responses to a request for exclusion of a particular product are due 14 days after the request is posted in docket number USTR-2018-0032 on www.regulations.gov. Any replies to responses to an exclusion request are due the later of 7 days after the close of the 14 day response period, or 7 days after the posting of a response. ADDRESSES: USTR strongly prefers electronic submissions made through the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting requests for exclusion, responses to requests, and replies to responses in section B below. The docket number is USTR-2018-0032. FOR FURTHER INFORMATION CONTACT: For questions about the product exclusion process, contact Assistant General Counsels Megan Grimball or Philip Butler, or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For questions on customs classification or implementation of additional duties, contact [email protected]. SUPPLEMENTARY INFORMATION: A. Background On August 18, 2017, the Office of the U.S. Trade Representative (USTR) 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 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 from China classified in a list of 1,333 tariff subheadings, with an annual trade value of approximately $50 billion. After review, the Trade Representative determined to take an initial action in the investigation, and to consider an additional proposed action. See 83 FR 28710 (June 20, 2018). The Trade Representative narrowed the proposed list in the April 6 notice to 818 tariff subheadings, with an approximate annual trade value of $34 billion. This initial action became effective on July 6, 2018. The additional proposed action was an additional ad valorem duty of 25 percent on products of China classified in 284 tariff subheadings, with an annual trade value of approximately $16 billion, as set forth in Annex C to the June 20 notice. After review, the Trade Representative determined to impose additional duties on 279 tariff subheadings, with an annual trade value of approximately $16 billion. See 83 FR 40823 (August 16, 2018). The additional duties on these products took effect on August 23, 2018. During the notice and comment process, a number of interested persons asserted that specific products within a particular tariff subheading only were available from China, that the imposition of additional duties on the specific products would cause severe economic harm to a U.S. interest, and that the specific products were not strategically important or related to the ``Made in China 2025'' program. In light of such concerns, the Trade Representative determined to establish a process by which U.S. stakeholders may request that particular products classified within a covered HTSUS subheading be excluded from the additional action. That process is set out in the remainder of this notice. B. Procedures To Request the Exclusion of Particular Products USTR invites interested persons, including trade associations, to submit requests for exclusion from the additional duties of a particular product classified within an HTSUS subheading set out in Annex A of the notice published at 83 FR 40823 (August 16, 2018). 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 whether the exclusion would undermine the objective of the Section 301 investigation. Any exclusion will be effective starting from the August 23, 2018 effective date of the additional duties, and extending for one year after the publication of the exclusion determination in the Federal Register. In other words, an exclusion, if granted, will apply retroactively to the August 23 date of the imposition of the additional duties. USTR will periodically announce decisions on pending requests. 1. Requests for Exclusion of Particular Products With regard to product identification, any request for exclusion must include the following information:Identification of the particular product in terms of the physical characteristics (e.g., dimensions, material composition, or other characteristics) that distinguish it from other products within the covered 8-digit subheading. USTR will not consider requests that identify the product at issue in terms of the identity [[Page 47237]] of the producer, importer, ultimate consumer, actual use or chief use, or trademarks or tradenames. USTR will not consider requests that identify the product using criteria that cannot be made available to the public. The 10-digit subheading of the HTSUS applicable to the particular product requested for exclusion. Requesters also may submit information on the ability of U.S. Customs and Border Protection to administer the exclusion. Requesters must provide the annual quantity and value of the Chinese-origin product that the requester purchased in each of the last three years. For trade association requesters, please provide such information based on your members' data. If precise annual quantity and value information are not available, please provide an estimate and explain the basis for the estimation. For imports sold as final products, requesters must provide the percentage of their total gross sales in 2017 that sales of the Chinese-origin product accounted for. For imports used in the production of final products, requesters must provide the percentage of the total cost of producing the final product(s) the Chinese-origin input accounts for and the percentage of their total gross sales in 2017 that sales of the final product(s) accounted for. With regard to the rationale for the requested exclusion, each request for exclusion should address the following factors: Whether the particular product is available only from China. In addressing this factor, requesters should address specifically whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries. Whether the imposition of additional duties on the particular product would cause severe economic harm to the requester or other U.S. interests. Whether the particular product is strategically important or related to ``Made in China 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. Any request that contains business confidential information must be accompanied by a public version. The public version will be posted on regulations.gov. 2. Responses to Requests for Exclusions After a request for exclusion of a particular product is posted on docket number USTR 2018-0032, interested persons will have 14 days to respond to the request, indicating support or opposition and providing reasons for their view. All responses must clearly identify the specific request for exclusion being addressed. You can view requests for exclusions on www.regulations.gov by entering docket number USTR- 2018-0032 in the search field on the home page. 3. Replies to Responses to Requests for Exclusions After a response is posted on docket number USTR 2018-0032, interested persons will have the opportunity to reply to the response. Any reply must be posted within the later of 7 days after the close of the 14 day response period, or 7 days after the posting of a response. All replies must clearly identify the specific responses being addressed. 4. Submission Instructions As noted above, interested persons must submit requests for exclusions by December 18, 2018. Any responses to those requests must be submitted within 14 days after the requests are posted. Any reply to a response must be submitted within the later of 7 days after the close of the 14 day response period, or 7 days after the posting of a response. Interested persons seeking to exclude two or more products must submit a separate request for each product, i.e., one product per request. All submissions must include a statement that the submitter certifies that the information provided is complete and correct to the best of his or her knowledge. To assist in review of requests for exclusion, USTR has prepared a request form that will be posted on the USTR website under `Enforcement/Section 301 investigations' and on the www.regulations.gov docket in the `supporting documents' section. USTR strongly encourages interested persons to use the form to submit requests, though use of the form is not required. All submissions must be in English and sent electronically via www.regulations.gov. 5. To Submit a Product Exclusion Request To submit requests via www.regulations.gov, enter document ID number USTR-2018-0032 on the home page and click `search.' The site will provide a search-results page listing the Federal Register notice associated with this docket. Find a reference to this notice and click on the link titled `comment now!'. Once posted on the electronic docket, the exclusion request will be viewable in the `primary documents' section. File names for requests for exclusions must include the 10-digit subheading of the HTSUS applicable to the particular product and the name of the person or entity submitting the request (e.g., 1234567890 Initech). If the request includes business confidential information, then two files must be submitted--the business confidential version and a public version. The file names must indicate the version, e.g., 1234567890 Initech BC and 1234567890 Initech P. Additional instructions on business confidential submissions can be found below in Section B.8 of this notice. 6. To Submit a Response to a Product Exclusion Request To respond to a request for exclusion, please find the request in the `primary documents' section of the docket and click on the link titled `comment now!' associated with that specific request. Responses made on requests for exclusion will appear in the `comments' section of the docket. File names for responses to requests should include the document ID of the request and the name of the person or entity submitting the response (e.g., USTR-2018-0032-0005 Initrode). If the response includes business confidential information, then two files must be submitted-- the business confidential information version and a public version. The file names should indicate the version, e.g., USTR-2018-0032-0005 Initrode BC and USTR-2018-0032-0005 Initrode P. 7. To Submit a Reply to a Response on a Product Exclusion Request To reply to a response made to an exclusion request, please find the exclusion request that is the subject of the response in the `primary documents' section of the docket and click on the link titled `comment now!'. Replies will appear in the `comments' section of the docket. File names for replies should include the document ID of the response and the name of the person or entity submitting the reply (e.g., USTR-2018-0032-0020 Initech). If the reply includes business confidential information, then two files must be submitted--the business confidential information version and a public version. The file names must indicate the version, e.g., USTR-2018-0032-0020 Initech BC and USTR-2018-0032-0020 Initech P. [[Page 47238]] For further information on using the www.regulations.gov website, please consult the resources provided on the website by clicking on `How to Use Regulations.gov' on the bottom of the home page. 8. Document Format Instructions Submit requests for product exclusions in an attached document. Type `see attached' in the `comment' field. USTR prefers submissions made using the request form that will be posted on the USTR website under `Enforcement/Section 301 investigations' and on the www.regulations.gov docket in the `supporting documents' section and saved as a searchable Adobe Acrobat (.pdf) document. If you do not use the USTR form, USTR prefers submissions made in Microsoft Word (.doc) or searchable Adobe Acrobat (.pdf). If you use an application other than those two, please indicate the name of the application in the `comment' field. Please do not attach separate cover letters to electronic submissions; rather, include any information that might appear in a cover letter in the comments themselves. Similarly, to the extent possible, please include any exhibits, annexes, or other attachments in the same file as the comment itself, rather than submitting them as separate files. For any documents submitted electronically containing business confidential information, the file name of the business confidential version must end with the characters `BC'. Any page containing business confidential information must be clearly marked `BUSINESS CONFIDENTIAL' on the top of that page and the submission should clearly indicate, via brackets, highlighting, or other means, the specific information that is business confidential. If you request business confidential treatment, you must certify in writing that disclosure of the information would endanger trade secrets or profitability, and that the information would not customarily be released to the public. Filers of submissions containing business confidential information also must submit a public version of their submissions. The file name of the public version must end with the character `P'. The `BC' and `P' should follow the rest of the file name. If these procedures are not sufficient to protect business confidential information or otherwise protect business interests, please contact the USTR Section 301 line at (202) 395-5725 to discuss whether alternative arrangements are possible. USTR will post submissions in the docket for public inspection, except business confidential information. You can view submissions on the https://www.regulations.gov website by entering docket number USTR- 2018-0032 in the search field on the home page. Robert E. Lighthizer, United States Trade Representative. [FR Doc. 2018-20246 Filed 9-17-18; 8:45 am] BILLING CODE 3290-F8-P
![47236 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices
Methodology responses to an exclusion request are of approximately $16 billion. See 83 FR
Currently, there is no option of due the later of 7 days after the close of 40823 (August 16, 2018). The additional
electronic submission of this the 14 day response period, or 7 days duties on these products took effect on
information. Submissions are made via after the posting of a response. August 23, 2018.
ADDRESSES: USTR strongly prefers During the notice and comment
hardcopy documentation. Applicants
electronic submissions made through process, a number of interested persons
are referred to ITAR § 123.9 for guidance
the Federal eRulemaking Portal: http:// asserted that specific products within a
on information to submit regarding the
www.regulations.gov. Follow the particular tariff subheading only were
request to change end-user, end-use available from China, that the
and/or destination of hardware. Upon instructions for submitting requests for
exclusion, responses to requests, and imposition of additional duties on the
implementation of DDTC’s new case specific products would cause severe
management system, The Defense replies to responses in section B below.
The docket number is USTR–2018– economic harm to a U.S. interest, and
Export Control and Compliance System that the specific products were not
(DECCS), a DS–6004 may be submitted 0032.
strategically important or related to the
electronically. FOR FURTHER INFORMATION CONTACT: For ‘‘Made in China 2025’’ program. In light
questions about the product exclusion of such concerns, the Trade
Anthony M. Dearth,
process, contact Assistant General Representative determined to establish a
Chief of Staff, Directorate of Defense Trade
Counsels Megan Grimball or Philip process by which U.S. stakeholders may
Controls, U.S. Department of State.
Butler, or Director of Industrial Goods request that particular products
[FR Doc. 2018–20209 Filed 9–17–18; 8:45 am]
Justin Hoffmann at (202) 395–5725. For classified within a covered HTSUS
BILLING CODE 4710–25–P
questions on customs classification or subheading be excluded from the
implementation of additional duties, additional action. That process is set out
contact traderemedy@cbp.dhs.gov. in the remainder of this notice.
OFFICE OF THE UNITED STATES SUPPLEMENTARY INFORMATION:
TRADE REPRESENTATIVE B. Procedures To Request the Exclusion
A. Background of Particular Products
[Docket Number USTR–2018–0032]
On August 18, 2017, the Office of the USTR invites interested persons,
Procedures To Consider Requests for U.S. Trade Representative (USTR) including trade associations, to submit
Exclusion of Particular Products From initiated an investigation into certain requests for exclusion from the
the Additional Action Pursuant to acts, policies, and practices of the additional duties of a particular product
Section 301: China’s Acts, Policies, Government of China related to classified within an HTSUS subheading
and Practices Related to Technology technology transfer, intellectual set out in Annex A of the notice
Transfer, Intellectual Property, and property, and innovation (82 FR 40213). published at 83 FR 40823 (August 16,
Innovation In a notice published on April 6, 2018 2018). As explained in more detail
(83 FR 14906), the Trade Representative below, each request specifically must
AGENCY: Office of the United States announced a determination that the identify a particular product, and
Trade Representative. acts, policies, and practices of the provide supporting data and the
ACTION: Notice and request for Government of China covered in the rationale for the requested exclusion.
comments. investigation are unreasonable or USTR will evaluate each request on a
discriminatory and burden or restrict case-by-case basis, taking into account
SUMMARY: In a notice published on U.S. commerce. The April 6 notice also whether the exclusion would
August 16, 2018 (83 FR 40823), the U.S. invited public comment on a proposed undermine the objective of the Section
Trade Representative (Trade action in the investigation, in the form 301 investigation. Any exclusion will be
Representative) determined to take an of an additional 25 percent ad valorem effective starting from the August 23,
additional action in the Section 301 duty on products from China classified 2018 effective date of the additional
investigation of China’s acts, policies, in a list of 1,333 tariff subheadings, with duties, and extending for one year after
and practices related to technology an annual trade value of approximately the publication of the exclusion
transfer, intellectual property, and $50 billion. determination in the Federal Register.
innovation. The August 16 notice also After review, the Trade In other words, an exclusion, if granted,
announced that the Trade Representative determined to take an will apply retroactively to the August 23
Representative would establish a initial action in the investigation, and to date of the imposition of the additional
process by which U.S. stakeholders may consider an additional proposed action. duties. USTR will periodically
request that particular products See 83 FR 28710 (June 20, 2018). The announce decisions on pending
classified within a tariff subheading Trade Representative narrowed the requests.
covered by the additional action be proposed list in the April 6 notice to
excluded from the additional duties. 818 tariff subheadings, with an 1. Requests for Exclusion of Particular
This notice sets out the specific approximate annual trade value of $34 Products
procedures and criteria related to billion. This initial action became With regard to product identification,
requests for product exclusions, and effective on July 6, 2018. The additional any request for exclusion must include
opens up a docket for the receipt of proposed action was an additional ad the following information:
exclusion requests. valorem duty of 25 percent on products • Identification of the particular
DATES: USTR must receive all requests of China classified in 284 tariff product in terms of the physical
daltland on DSKBBV9HB2PROD with NOTICES
to exclude a particular product by subheadings, with an annual trade value characteristics (e.g., dimensions,
December 18, 2018. Responses to a of approximately $16 billion, as set forth material composition, or other
request for exclusion of a particular in Annex C to the June 20 notice. characteristics) that distinguish it from
product are due 14 days after the After review, the Trade other products within the covered 8-
request is posted in docket number Representative determined to impose digit subheading. USTR will not
USTR–2018–0032 on additional duties on 279 tariff consider requests that identify the
www.regulations.gov. Any replies to subheadings, with an annual trade value product at issue in terms of the identity
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![47238 Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices
For further information on using the business confidential information. You to 5 p.m., Monday through Friday,
www.regulations.gov website, please can view submissions on the https:// except Federal Holidays.
consult the resources provided on the www.regulations.gov website by Interested parties are invited to
website by clicking on ‘How to Use entering docket number USTR–2018– participate in these proceedings by
Regulations.gov’ on the bottom of the 0032 in the search field on the home submitting written views, data, or
home page. page. comments. FRA does not anticipate
8. Document Format Instructions Robert E. Lighthizer, scheduling a public hearing in
Submit requests for product United States Trade Representative. connection with these proceedings since
exclusions in an attached document. [FR Doc. 2018–20246 Filed 9–17–18; 8:45 am] the facts do not appear to warrant a
Type ‘see attached’ in the ‘comment’ BILLING CODE 3290–F8–P
hearing. If any interested parties desire
field. USTR prefers submissions made an opportunity for oral comment and a
using the request form that will be public hearing, they should notify FRA,
posted on the USTR website under in writing, before the end of the
DEPARTMENT OF TRANSPORTATION comment period and specify the basis
‘Enforcement/Section 301
investigations’ and on the Federal Railroad Administration for their request.
www.regulations.gov docket in the All communications concerning these
‘supporting documents’ section and [Docket Number FRA–2018–0026] proceedings should identify the
saved as a searchable Adobe Acrobat appropriate docket number and may be
(.pdf) document. If you do not use the Petition for Waiver of Compliance
submitted by any of the following
USTR form, USTR prefers submissions methods:
made in Microsoft Word (.doc) or Under part 211 of Title 49 Code of
searchable Adobe Acrobat (.pdf). If you Federal Regulations (CFR), this provides • Website: http://
use an application other than those two, the public notice that on June 7, 2018, www.regulations.gov. Follow the online
please indicate the name of the the Western Maryland Scenic Railroad instructions for submitting comments.
(WMSR) petitioned the Federal Railroad
application in the ‘comment’ field. • Fax: 202–493–2251.
Please do not attach separate cover Administration (FRA) for a waiver of
compliance from certain provisions of • Mail: Docket Operations Facility,
letters to electronic submissions; rather,
the Federal railroad safety regulations U.S. Department of Transportation, 1200
include any information that might
contained at 49 CFR parts 215 and 224. New Jersey Avenue SE, W12–140,
appear in a cover letter in the comments
themselves. Similarly, to the extent FRA assigned the petition Docket Washington, DC 20590.
possible, please include any exhibits, Number FRA–2018–0026. • Hand Delivery: 1200 New Jersey
annexes, or other attachments in the Specifically, WMSR requests relief Avenue SE, Room W12–140,
same file as the comment itself, rather from 49 CFR 215.303, Stenciling of Washington, DC 20590, between 9 a.m.
than submitting them as separate files. restricted cars, and 49 CFR part 224, and 5 p.m., Monday through Friday,
For any documents submitted Reflectorization of Rail Freight Rolling except Federal Holidays.
electronically containing business Stock, for 16 freight cars. WMSR
Communications received by
confidential information, the file name explains it is a non-profit entity,
November 2, 2018 will be considered by
of the business confidential version operating on 17 miles of track from
FRA before final action is taken.
must end with the characters ‘BC’. Any Ridgeley, WV, through Cumberland,
Comments received after that date will
page containing business confidential MD, and west to Frostburg, MD. WMSR
owns several freight cars of various built be considered as far as practicable.
information must be clearly marked
‘BUSINESS CONFIDENTIAL’ on the top and rebuilt dates, and primarily uses Anyone can search the electronic
of that page and the submission should this equipment as operating historic form of any written communications
clearly indicate, via brackets, artifacts. WMSR receives inquiries for and comments received into any of our
highlighting, or other means, the the making up and operation of historic dockets by the name of the individual
specific information that is business demonstration trains using the freight submitting the comment (or signing the
confidential. If you request business cars for photography, historic document, if submitted on behalf of an
confidential treatment, you must certify documentation, and film production, association, business, labor union, etc.).
in writing that disclosure of the along with its diesel and steam engines. Under 5 U.S.C. 553(c), DOT solicits
information would endanger trade Because the chartering of such comments from the public to better
secrets or profitability, and that the demonstration trains is potentially inform its processes. DOT posts these
information would not customarily be profitable, WMSR would like the comments, without edit, including any
released to the public. Filers of flexibility to make and operate the personal information the commenter
submissions containing business historic freight trains at any time. provides, to www.regulations.gov, as
confidential information also must WMSR states these ‘‘dedicated service’’ described in the system of records
submit a public version of their cars have been certified as safe to notice (DOT/ALL–14 FDMS), which can
submissions. The file name of the public operate. The cars will only be operated be reviewed at https://
version must end with the character ‘P’. occasionally, on WMSR track, empty, www.transportation.gov/privacy. See
The ‘BC’ and ‘P’ should follow the rest and at or below 10 miles per hour. also https://www.regulations.gov/
of the file name. If these procedures are A copy of the petition, as well as any privacyNotice for the privacy notice of
not sufficient to protect business written communications concerning the regulations.gov.
daltland on DSKBBV9HB2PROD with NOTICES
confidential information or otherwise petition, is available for review online at
Issued in Washington, DC.
protect business interests, please contact www.regulations.gov and in person at
the U.S. Department of Transportation’s Robert C. Lauby,
the USTR Section 301 line at (202) 395–
5725 to discuss whether alternative (DOT) Docket Operations Facility, 1200 Associate Administrator for Railroad Safety,
arrangements are possible. New Jersey Avenue SE, W12–140, Chief Safety Officer.
USTR will post submissions in the Washington, DC 20590. The Docket [FR Doc. 2018–20204 Filed 9–17–18; 8:45 am]
docket for public inspection, except Operations Facility is open from 9 a.m. BILLING CODE 4910–06–P
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Document Created: 2018-09-18 01:18:09
Document Modified: 2018-09-18 01:18:09
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice and request for comments. | |
| Dates | USTR must receive all requests to exclude a particular product by December 18, 2018. Responses to a request for exclusion of a particular product are due 14 days after the request is posted in docket number USTR-2018-0032 on www.regulations.gov. Any replies to responses to an exclusion request are due the later of 7 days after the close of the 14 day response period, or 7 days after the posting of a response. | |
| Contact | For questions about the product exclusion process, contact Assistant General Counsels Megan Grimball or Philip Butler, or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For questions on customs classification or implementation of additional duties, contact [email protected] | |
| FR Citation | 83 FR 47236 |
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