[Federal Register Volume 60, Number 44 (Tuesday, March 7, 1995)]
[Notices]
[Pages 12582-12583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5664]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-92]
Termination of Section 301 Investigation and Action Regarding the
People's Republic of China's Protection of Intellectual Property and
Provision and Market Access to Persons Who Rely on Intellectual
Property Protection
AGENCY: Office of the United States Trade Representative.
ACTION: Termination of investigation of certain acts, policies and
practices of the Peoples' Republic of China (China) initiated under
section 302 of the Trade Act of 1974, as amended (Trade Act);
termination of action pursuant to section 301 of the Trade Act;
monitoring of trade agreement under section 306 of the Trade Act;
revocation of priority foreign country identification under section
182(c)(1)(B) of the Trade Act; and requests for public comment.
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SUMMARY: On February 4, 1995, the United States Trade Representative
(USTR) determined pursuant to section 304(a)(1)(A) of the Trade Act
that certain acts, policies and practices of China with respect to the
enforcement of intellectual property rights and the provision of market
access to persons who rely on intellectual property protection are
unreasonable and constitute a burden or restriction on U.S. commerce.
The USTR also determined pursuant to section 304(a)(1)(B) and 301(b)
that action in the form of increasing duties on certain products of
China to 100 percent ad valorem was appropriate. 60 FR 7230 (February
7, 1995). Having reached a satisfactory resolution of the issues under
investigation, the USTR has determined to: (1) Terminate this section
301 investigation; (2) monitor implementation of the agreement under
section 306 of the Trade Act; (3) terminate the action ordered pursuant
to section 301 with respect to raising tariffs on certain products
originating in China; and (4) revoke China's identification as a
priority foreign country under section 182 of the Trade Act. Public
comments will be accepted on the decision to terminate the action
ordered pursuant to section 301.
EFFECTIVE DATE: The modification of the Harmonized Tariff Schedule of
the United States (HTS) described below is effective with respect to
imports entered, or withdrawn from warehouse for consumption, on or
after February 26, 1995. The determinations to terminate the action
taken under section 301 and revoke China's status as a priority foreign
country were made by the USTR on February 26, 1995. Written comments
from interested persons are due by noon on Friday, March 10, 1995.
ADDRESSES: Section 301 Committee, Office of the United States Trade
Representative, Room 223, 600 17th Street, NW., Washington, D.C. 20506.
FOR FURTHER INFORMATION CONTACT:
Deborah Lehr, Director for China and Mongolian Affairs (202) 395-5050,
or Thomas Robertson, Assistant General Counsel (202) 395-6800.
SUPPLEMENTARY INFORMATION: On June 30, 1994, China was identified as a
priority foreign country under the ``special 301'' provisions of the
Trade Act for its failure to enforce intellectual property rights or to
provide fair and equitable market access to persons who rely on
intellectual property protection. On the same day, the USTR initiated
an investigation of those acts, policies and practices of China that
were the basis for its identification as a priority foreign country
(PFC) under section 182(c)(1)(B) of the Trade Act. 59 FR 35558 (July
12, 1994).
On December 31, 1994, the USTR extended the investigation until
February 4, 1995, and sought public comment on proposed determinations
under section 304(a)(1). 60 FR 1829 (January 5, 1995). On February 4,
1995, the USTR determined that the acts, policies and practices of the
Chinese government at issue in the investigation are unreasonable and
constitute a burden or restriction on U.S. commerce. The USTR also
determined that the appropriate action in response was to impose duties
of 100 percent ad valorem on certain Chinese-origin products that were
entered, or withdrawn from warehouse for consumption, on or after
February 26, 1995. 60 FR 7230 (February 7, 1995).
After extensive negotiations, the United States and China entered
into an exchange of letters (including an Action Plan for the Effective
Protection and Enforcement of Intellectual Property Rights) by which
China will address the issues raised by the United States in the
negotiations. Under the agreement, China will, among other things,
establish a system at the central, provincial and local levels to
provide strong, transparent and responsive enforcement of intellectual
property rights; initiate a special enforcement period during which
enhanced resources will be allocated to the enforcement of intellectual
property rights; establish an effective border enforcement regime;
ensure the transparency of its legal regime, [[Page 12583]] including
the publication of all laws and regulations concerning intellectual
property protection; and provide U.S. right holders with enhanced
access to the Chinese market. The United States and China will consult
regularly on China's implementation of the agreement.
On the basis of the measures that China has agreed to undertake in
the agreement, the USTR has decided that the action taken pursuant to
section 301(b) (the increase in tariffs on certain products from China)
is no longer appropriate and should be terminated. The United States
Custom Service has been notified of this determination. Pursuant to
section 182(c)(1)(A) of the Trade Act, the USTR has also decided to
revoke China's designation as a priority foreign country.
Section 307(a)(1)(C) of the Trade Act authorizes the USTR to
terminate any action, subject to the specific direction, if any, of the
President, if, inter alia, the USTR determines that the action being
taken under section 301(b) of the Trade Act is no longer appropriate.
Prior to terminating this 301 action, the USTR consulted with the
domestic industries concerned regarding the modification and
termination of the existing action. An opportunity for public comment
prior to this action was not possible in view of the need for
expeditious action. Immediate termination of the 301 action was
required so that U.S. intellectual property right holders could
immediately start to receive the benefits of the agreement entered into
with China. However, interested members of the public are now invited
to submit comments to USTR regarding this action in accordance with the
directions provided below. USTR will review these comments upon
receipt.
Pursuant to section 306 of the Trade Act, the USTR will monitor
China's implementation of the agreement. If, on the basis of this
monitoring, the USTR considers that China is not satisfactorily
implementing the terms of the agreement, the USTR will decide what
further action to take under section 301(a) of the Trade Act.
Public Comments
Comments must be filed in accordance with the requirements set
forth in 15 CFR 2006.8(b) and are due no later than noon, Friday, March
10, 1995. Comments must be in English and be provided in twenty copies
to: Chairman, section 301 Committee, Room 223, USTR, 600 17th Street,
N.W., Washington, D.C. 20506.
Comments will be placed in a file [Docket 301-92] open to public
inspection pursuant to 15 CFR 2006.13, except confidential business
information exempt from public inspection in accordance with 15 CFR
2006.15. Confidential business information submitted in accordance with
15 CFR 2006.15 must be clearly marked ``Business Confidential'' in a
contrasting color ink at the top of each page (on each of the 20
copies), and must be accompanied by a nonconfidential summary of the
confidential information. The nonconfidential summary shall be placed
in the docket open to public inspection.
Modification of the Harmonized Tariff Schedule of the United States
(HTS)
Accordingly, the HTS is hereby modified by deleting subheadings
9903.50.01 through 9903.50.33, inclusive, and the superior text
immediately preceding such subheadings, effective February 26, 1995.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 95-5664 Filed 3-6-95; 8:45 am]
BILLING CODE 3190-01-M