[Federal Register Volume 63, Number 125 (Tuesday, June 30, 1998)]
[Notices]
[Pages 35633-35634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17485]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-116]
Termination of Action: Protection of Intellectual Property Rights
by the Government of Honduras
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of termination of action and monitoring and request for
public comments.
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SUMMARY: On March 16, 1998, the USTR determined that the failure by the
Government of Honduras to provide adequate and effective protection of
intellectual property rights was unreasonable and burdened or
restricted United States commerce and that the appropriate action was
to suspend preferential treatment accorded under the Generalized System
of Preferences (GSP) and Caribbean Basin Initiative (CBI) programs to
certain products of Honduras, including certain cucumbers, watermelons,
and cigars. In view of the Government of Honduras' measures to combat
piracy and to protect intellectual property rights of the United
States, the USTR has terminated that action taken under Section 301(b)
of the Trade Act of 1974 (``Trade Act''). USTR will monitor Honduras'
compliance in protecting the intellectual property rights of the United
States pursuant to Section 306 of the Trade Act.
ADDRESSES: Office of the United States Trade Representative, 600 17th
Street, NW, Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT:
Mary Barnicle, Office of the Western Hemisphere, (202) 396-5190 or
William Busis, Office of the General Counsel, (202) 395-3150, Office of
the United States Trade Representatives.
SUPPLEMENTARY INFORMATION: In 1992, the Motion Picture Association
filed a petition under the Generalized System of Preferences program
asking that tariff preference benefits to Honduras under the GSP and
CBI programs be withdrawn due to widespread, blatant copyright piracy.
In May 1997, the Trade Policy Staff Committee (TPSC) recommended that
GSP and CBI benefits be suspended unless the Government of Honduras
improved its intellectual property rights enforcement within four
months. On October 31, 1997, in order to implement the TPSC
recommendation, the USTR initiated an investigation under Section
302(b) of the Trade Act (19 U.S.C. 2412(b)) with respect to certain
acts and policies of the Government of Honduras concerning its
protection of intellectual property rights, including the failure to
provide adequate and effective copyright protection and enforcement of
rights of copyright owners, resulting in, for example, the wise-spread
unauthorized broadcasting in Honduras of pirated videos and the
rebroadcasting of U.S. satellite-carried television programming. See 62
FR 60299 of November 7, 1997. The USTR proposed to determine that the
practices under investigation were actionable under Section 301 of the
Trade Act and that the appropriate response would be a partial
suspension of tariff preferences for certain Honduran imports.
After the initiation of the investigation, the United States
consulted repeatedly with the Government of Honduras regarding the
matters under investigation. However, while the Honduran government
established a television regulatory authority and initiated criminal
actions against two stations engaged in broadcast piracy, blatant
broadcast piracy continued and U.S. copyright-based industries
continued to suffer harm. On March 16, 1998, the USTR determined
pursuant to sections 301(b)(1) and 304(a)(1)(A)(ii) of the Trade Act
that the Government of Honduras failed to provide adequate and
effective protection of intellectual property rights and the acts,
policies or practices of Honduras under investigation were unreasonable
and burdened or restricted U.S. commerce. The USTR further determined
pursuant to sections 304(a)(1)(B), 301(b)(2), and 301(c)(1)(C) of the
Trade Act that the appropriate and feasible action was to suspend the
duty-free GSP and CBI treatment accorded to certain products of
Honduras, including certain cucumbers, watermelons, and cigars. See 63
FR 16608 of April 3, 1998.
Following the USTR determinations as to the actionability and
specific action to be taken, the Government of Honduras has taken a
number of steps to stop broadcast piracy. It temporarily shut down two
television stations and imposed and collected fines from the stations
in an effort to provide adequate copyright protection. The Government
of Honduras has also made a written promise to impose higher fines and
to temporarily shut down the television stations again for a longer
period if piracy resumes. 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 such action is being taken
under Section 301(b) and is no longer appropriate. In light of the
foregoing, the USTR has determined that the existing Section 301(b)
action should be terminated and, as specified in the annex to this
notice, the suspended GSP and CBI benefits should be restored.
Restoration of benefits will be effective with regard to articles
entered, or withdrawn from warehouse for consumption, on or after the
date of publication of this notice. The USTR has also decided to
terminate the GSP review initiated in 1993.
Section 604 of the Trade Act, as amended (19 U.S.C. 2463),
authorizes the President to modify the Harmonized Tariff Schedule of
the United States (HTS) to reflect laws, and actions thereunder,
affecting the treatment of imports. In Proclamation 6969 of Jan. 27,
1997 (62 FR 4415 of Jan. 29, 1997), the President delegated to USTR the
authority under Section 604 to embody rectifications, technical or
conforming changes, or similar modifications in the HTS.
The notice that suspended GSP and CBI benefits for certain imports
from Honduras renumbered HTS general note 7(d)(iv)--which embodied in
the HTS Section 213(d) of the CBERA, as amended (19 U.S.C. 2703(d))--as
HTS general note 7(g). See 63 FR 16608 of April 3, 1998. Pursuant to
the authority delegated by the President to USTR in Proclamation 6969,
the annex to this notice makes a technical correction to HTS general
note 7(g) in order to make the provision a complete sentence.
Prior to terminating this 301 action, the USTR consulted with the
domestic industry 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 Section 301 action was required to ensure
full and prompt implementation of measures taken by the Government of
Honduras to prevent resumption of piracy.
Interested members of the public are now invited to submit comments
to USTR regarding this action. USTR will review these comments upon
receipt.
Public Comments
Comments must be filed in accordance with the requirements set
forth in 15 CFR 2006.8(b) (55 FR 20593) and must be filed on or before
noon on July 31, 1998. Comments must be in English and provided in
twenty copies to: Sybia Harrison, Staff Assistant to the Section 301
Committee, Room 223,
[[Page 35634]]
Office of the U.S. Trade Representative, 600 17th Street, NW,
Washington, DC 20508.
Comments will be placed in a file (Docket 301-116) 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 20 copies, and
must be accompanied by a nonconfidential summary of the confidential
information. The nonconfidential summary shall be placed in the file
that is open to public inspection. Copies of the public version of the
petition and other relevant documents are available for public
inspection in the USTR Reading Room. An appointment to review the
docket (Docket No. 301-116) may be made by calling Brenda Webb (202)
395-6186. The USTR Reading Room is open to the public from 9:30 a.m. to
12 noon and 1:00 p.m. to 4:00 p.m., Monday through Friday, and is
located in Room 101.
Susan G. Esserman,
Acting United States Trade Representative.
Annex
The Harmonized Tariff Schedule of the United States (``HTS'') is
modified as set forth below with respect to articles entered, or
withdrawn from warehouse for consumption, on or after the effective
specified for the enumerated actions:
1. With respect to articles both: (i) imported on or after January
1, 1976, and (ii) entered, or withdrawn from warehouse for consumption,
or on after June 30, 1998:
(a). General note 4(d) of the HTS is modified by deleting the
following subheadings and the country set out opposite them: 0707.020
Honduras; 0707.00 Honduras; 0807.11.30 Honduras.
(b). For the following subheadings, the Rates of Duty 1--Special
subcolumn is modified by deleting the symbol ``A*'' and inserting an
``A'' in lieu thereof: 0707.20; 0707.00; 0807.11.30.
2. With respect to articles entered, or withdrawn from warehouse
for consumption, on or after June 30, 1998.
(a). General note 7(d) of the HTS is modified by:
(i). in subdivision (ii) deleting ``of the CBERA;'' and inserting
``of the CBERA; or'' in lieu thereof;
(ii) in subdivision (iii) deleting ``provided for in this note;
or'' and inserting ``provided for in this note.'' in lieu thereof; and
(iii). deleting subdivision (iv).
(b). For the following subheadings, the Rates of Duty 1--Special
subcolumn is modified by deleting the symbol ``E*'' and inserting an
``E'' in lieu thereof: 0707.00.20; 0707.00.40; 0807.11.30; 2402.10.60.
3. With respect to articles entered, or withdrawn from warehouse
for consumption, on or after the April 20, 1998, general note 7 to the
HTS is modified by deleting subdivision 7(g) and inserting the
following new subdivision 7(g) in lieu thereof:
``(g) The duty-free treatment provided under the CBERA shall not
apply to any agricultural product of chapters 2 through 52, inclusive,
that is subject to a tariff-rate quota, if entered in a quantity in
excess of the in-quota quantity for such produce.''
[FR Doc. 98-17485 Filed 6-26-98; 12:56 pm]
BILLING CODE 3190-01-M
