[Federal Register Volume 61, Number 97 (Friday, May 17, 1996)]
[Notices]
[Pages 25000-25010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12572]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-92]
Request for Public Comment and Notice of Public Hearing:
Determination Involving Expeditious Action; Proposed Determination
Concerning What Further Action To Take Under Section 301(a) in Response
to the People's Republic of China's Unsatisfactory Implementation of
the 1995 Agreement on Enforcement of Intellectual Property and Market
Access
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of determination on expeditious action and proposed
determination on further action; request for public comment; notice of
public hearing.
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SUMMARY: Based on monitoring carried out pursuant to subsection 306(a)
of the Trade Act of 1974 (Trade Act) (19 U.S.C. 2416(a)), the Acting
United States Trade Representative (USTR) considers that China is not
satisfactorily implementing the 1995 Agreement on Enforcement of
Intellectual Property Rights and Market Access (1995 Agreement) China
entered into to resolve the intellectual property rights (IPR)
enforcement and market access issues subject to investigation under
Title III, chapter I of the Trade Act. In light of this, the USTR must,
pursuant to sections 306(b), determine what further action to take
under section 301(a) of the Trade Act (19 U.S.C. 2411(a)). The USTR
proposes to take the following action: To impose prohibitive tariffs on
imports of certain products of China to be drawn from the lists of
products set forth in the Annexes to this Notice.
Since the products listed in Annex II to this Notice are subject to
quantitative restrictions and it is essential to prevent surges of
imports into the U.S. market, the USTR, pursuant to section 304(b)(1)
of the Trade Act, has determined that expeditious action is necessary.
Pursuant to section 301(a) and (c) of the Trade Act, the USTR has
directed the Commissioner of Customs, to limit by date of export
entries of the textile and apparel products listed in Annex II, over
the 30-day period (commencing with exports from China on or after May
15, 1996) to 15 percent of the 1996 adjusted level for each category of
product. In addition, the USTR has requested the Chair of the Committee
on Implementation of Textile Agreements (CITA) to amend CITA's relevant
directives dated November 30, 1995, and December 13, 1995, in order to
facilitate Customs implementation of this determination, and to inform
Customs accordingly.
Pursuant to section 304(b) and 306(c) of the Trade Act (19 U.S.C.
2414(b) and 2416(c)), the USTR is seeking public comments and will hold
a public hearing on June 6-7, 1996, regarding the expeditious action
taken and a proposed determination on what further action to take.
EFFECTIVE DATE: Requests to testify at the hearing must be submitted by
noon, Wednesday, May 22, 1996; written testimony is due by noon,
Friday, May 31, 1996; and written rebuttals are due by 5:00 p.m.,
Monday, June 10, 1996. Written comments on the proposed
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determination are due by noon, Friday, June 14, 1996.
FOR FURTHER INFORMATION CONTACT:
Questions concerning the products under consideration for imposition
of prohibitive tariffs should be directed to Irving Williamson, Chair
Section 301 Committee (202) 395-3432, Deborah Lehr, Deputy Assistant
USTR for China and Mongolian Affairs (202) 395-5050, or Caroyl Miller
(202) 395-3026 Deputy Chief Textiles Negotiator; questions about the
public hearing, written testimony and written comments should be
directed to Sybia Harrison, Staff Assistant to Section 301 Committee,
(202) 395-3432. All of the above persons are located at the Office of
the United States Trade Representative, 600 17th Street, NW,
Washington, D.C. 20508.
SUPPLEMENTARY INFORMATION: On June 30, 1994, pursuant to section 302(b)
of the Trade Act, the USTR initiated an investigation of those acts,
policies and practices of China that were the basis for identification
of China as a priority foreign country (PFC) under section 182 of the
Trade Act. See 59 FR 35558 (July 12 1994). On February 4, 1995, the
USTR determined that certain acts, policies and practices of the
Chinese government with respect to the enforcement of IPRs and market
access for persons relying on intellectual property protection are
unreasonable and constitute a burden or restriction on U.S. commerce.
The USTR also determined that trade action in the form of assessment of
increased duties on certain products from China was appropriate. See 60
FR 7230 (Feb. 7, 1995).
On February 26, 1995, the government of China agreed to take
extensive measures to enforce IPRs and provide market access for
persons relying on intellectual property protection. On the basis of
the measures that China agreed to undertake, the USTR decided that the
action taken pursuant to section 301(c) of the Trade Act, to increase
tariffs on certain products from China, was no longer appropriate and
terminated that action. The USTR also determined to monitor, under
section 306 of the Trade Act, China's implementation of the measures it
had agreed to undertake and terminated the investigation. Pursuant to
section 182(c)(1)(A) of the Trade Act, the USTR also decided to revoke
China's designation as a PFC. See 60 FR 12583 (March 7, 1995). The
Agreement setting forth the measures China agreed to take was formally
signed on March 11, 1995.
Since then, USTR and other agencies have worked closely and
consulted frequently with the Chinese government on implementation of
the IPR Agreement. The U.S. government has provided technical
assistance and training on enforcement of IPRs and private sector
interests have worked with individuals and firms in China to achieve
market access for U.S. products and firms.
While some progress has been made in the area of enforcement of
IPRs, particularly with respect to enforcement of copyrights at the
retail level, critical deficiencies are present in China's
implementation of measures to address piracy at the production and
wholesale distribution level. Piracy remains particularly rampant in
Guangdong province. Manufacturers and distributors--primarily located
in southern China--continue to produce pirated CDs, LDS and CD-ROMS in
massive quantities. Due to lax enforcement at the point of production
and at the border, export of pirated computer software, movies, sound
recordings and other products have grown substantially over the past
year. Products pirated in China have flooded Southeast Asia, Russia and
the other Commonwealth of Independent States (CIS) countries. Latin
American and European markets have also been targeted and the U.S.
Customs Service has seized pirated CDS and CD-ROMs entering the United
States from China. Finally, no significant progress has been made in
providing market access to U.S. firms and products that rely on IPR
protection.
Based on the results of this monitoring, the USTR considers that
China is not satisfactorily implementing the Agreement that was the
basis for resolving the IPR enforcement and market access issues under
investigation. Consequently, USTR is seeking comments on a proposed
determination on what action to take under section 301(a) of the Trade
Act.
Proposed Determination and Expeditious Action
Pursuant to sections 306(b) and 301(c) of the Trade Act, the USTR
proposes to take the following action: To impose prohibitive tariffs on
imports of certain products of China to be drawn from the lists of
products set forth in the Annexes to this notice.
The decision on what specific products could be subject to
prohibitive tariffs will take into consideration the written comments
provided and any written and oral testimony offered at the public
hearing.
Since the products listed in Annex II to this Notice are subject to
quantitative restrictions and it is essential to prevent surges of
imports into the U.S. market, the USTR, pursuant to section 304(b)(1)
of the Trade Act, has determined that expeditious action is necessary.
Pursuant to section 301 (a) and (c) of the Trade Act, the USTR has
directed the Commissioner of Customs, to limit by date of export
entries of the textile and apparel products listed in Annex II, over
the 30-day period (commencing with exports from China on or after May
15, 1996) to 15 percent of the 1996 adjusted level for each category of
product. In addition, the USTR has requested the Chair of CITA to amend
CITA's relevant directives dated November 30, 1995, and December 13,
1995, in order to facilitate customs implementation of this
determination and to inform Customs accordingly.
Public Comment on Expeditious Action Taken, Proposed Determination and
Hearing Participation
In accordance with section 304(b) and 306(c) of the Trade Act, the
USTR invites all interested persons to provide written comments on the
action take under section 304(b)(1) and the proposed determination.
With respect to the proposed trade action under section 301, comments
may address: (1) the appropriateness of subjecting the products listed
in the Annexes to this notice to prohibitive duties; (2) the level at
which duties on particular products should be set; and (3) the degree
to which imposition of prohibitive duties on particular products might
have an adverse effect on U.S. consumers. Comments will be considered
in recommending any determination or action under section 301 to the
USTR.
The USTR will also consider the written, oral, and rebuttal
comments submitted in the context of a public hearing held pursuant to
section 304(b) of the Trade Act and in accordance with 15 CFR 2006.7
through 2006.9. The hearing will commence at 10:00 a.m. on Thursday,
June 6, 1996, continue on June 7, 1996, if necessary. The hearing will
be held in the Main Hearing Room (Room 101) at the U.S. International
Trade Commission, 500 E Street, SW, Washington, D.C.
Request to Testify: Interested person wishing to testify orally at
the hearings must provide a written request to do so by noon,
Wednesday, May 22, 1996, to Sybia Harrison, Staff Assistant to the
Section 301 Committee, Office of the U.S. Trade Representative, 600
17th Street NW, Washington, DC 20508. Requests to testify must include
the following information: (1) name, address, telephone and fax
numbers, and firm or affiliation; and (2) a brief summary of their
presentation. Requests
[[Page 25002]]
must conform to the requirements of 15 CFR 2006.8(a). After the
Chairman of the Section 301 Committee considers the request to present
oral testimony, Ms. Harrison will notify the applicant of the time of
his or her testimony. Remarks at the hearing will be limited to 5
minutes.
Written Testimony: In addition, persons presenting oral testimony
must submit their complete written testimony by noon on Friday, May 31,
1996. In order to assure each party an opportunity to contest the
information provided by other parties, USTR will entertain rebuttal
briefs filed by any party by 5:00 p.m., Monday, June 10, 1996. In
accordance with 15 CFR 2006.8(c), rebuttal briefs should be strictly
limited to demonstrating errors of fact or analysis not pointed out in
the briefs or hearing and should be as concise as is possible.
Requirements for Submissions: Written comments on the proposed
determinations under section 306 of the Trade Act, written testimony,
and rebuttal briefs must be filed in accordance with the requirements
set forth in 15 CFR 2006.8(b) and are due according to the relevant
deadlines noted above. Comments must state clearly the position taken
and describe with particularity the supporting rationale, be in
English, and be provided in twenty copies to: Chairman, Section 301
Committee, Room 223, USTR, 600 17th St., N.W., Washington, D.C. 20508.
Written comments, testimony, and briefs 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. Persons wishing to submit
confidential business information must certify in writing that such
information is confidential in accordance with 15 CFR 2006.15(b), and
such information must be clearly marked ``Business Confidential'' in a
contrasting color ink at the top of each page on each of the twenty
copies and must be accompanied by a nonconfidential summary of the
confidential information. The nonconfidential summary will be placed in
the Docket open to public inspection. An appointment to review the
docket (Docket No. 301-92) may be made by calling Brenda Webb (202)
395-6186. The USTR Reading Room is open to the public from 10:00 a.m.
to noon and 1:00 p.m. to 4:00 p.m., Monday through Friday, and is
located in Room 101.
Irving A. Williamson,
Chairman, Section 301 Committee.
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[FR Doc. 96-12572 Filed 5-15-96; 12:19 pm]
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