[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16826]
[[Page Unknown]]
[Federal Register: July 12, 1994]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-92]
Identification of Priority Foreign Country and Initiation of
Section 302 Investigation
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of the identification of China as a priority foreign
country pursuant to section 182(c) of the Trade Act of 1974, as amended
(Trade Act), the initiation of an investigation pursuant to section
302(b)(2)(A) of the Trade Act, and request for public comment.
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SUMMARY: Pursuant to section 182(c) of the Trade Act (19 U.S.C. 2242),
the USTR has identified China as a priority foreign country based on
its failure to provide adequate and effective protection of
intellectual property rights and fair and equitable market access to
persons relying on intellectual property protection. Pursuant to
section 302(b)(2)(A) of the Trade Act (19 U.S.C. 2412(b)(2)(A)), the
USTR has initiated an investigation of the acts, policies and practices
that led to the identification of China as a priority foreign country.
EFFECTIVE DATE: The USTR's identification of China and initiation of
the related investigation took place on June 30, 1994.
FOR FURTHER INFORMATION CONTACT:
Lee Sands, Deputy Assistant USTR for China and Mongolian Affairs (202)
395-5050, Deborah Lehr, Director for China and Mongolian Affairs (202)
395-5050, or Thomas Robertson, Assistant General Counsel (202) 395-
6800, 600 17th Street, N.W., Washington, D.C. 20506.
SUPPLEMENTARY INFORMATION: Section 182(a) of the Trade Act requires the
USTR annually to identify foreign countries that deny adequate and
effective protection or enforcement of intellectual property rights or
that deny fair and equitable market access to persons that rely on
intellectual property protection. On April 30, 1994, the USTR
identified China as being among the group of 36 foreign countries that
fall into this category. At that time, the USTR noted that China's
failures in this regard were particularly problematic, and that its
status under special 301 would be reviewed again in 60 days. A U.S.
government interagency team traveled to China in June to seek
elimination or modification of the acts, policies, and practices of
concern, but found little movement from the Chinese government on these
issues.
Section 182(c) of the Trade Act permits the USTR at any time during
the year to identify as priority foreign countries those trading
partners that have the most onerous or egregious acts, policies, and
practices that have the greatest adverse impact (actual or potential)
on relevant U.S. products. Section 302(b)(2)(A) of the Trade Act
requires the initiation of an investigation of the acts, policies, and
practices which were the basis for the priority foreign country
identification unless the acts, policies, and practices are already the
subject of an investigation or action under the section 301 provisions
of the Trade Act.
Because of the severe problems with intellectual property
protection and market access for persons that rely on intellectual
property protection in China, and the unwillingness of the Chinese
government to address these problems through productive consultations
over the last 60 days, the USTR has designated China a priority foreign
country and has initiated an investigation under section 301 of the
Trade Act of its acts, policies, and practices in this area.
While China has implemented most of its commitments under the 1992
Memorandum of Understanding Between the Government of the United States
of America and the Government of the People's Republic of China on the
Protection of Intellectual Property, it has failed to create an
effective intellectual property rights enforcement regime. Copyright
piracy in China is particularly acute, and trademark infringement
remains a serious concern, with little indication of their willingness
to address these problems. Appropriate implementation of China's new
patent law and administrative protection program for pharmaceuticals
and agricultural chemicals is also of concern. Particular problems with
China's present enforcement regime include, among other things,
internally inconsistent laws; a lack of transparency in the enforcement
structure; a lack of protection for existing works; gaps in
responsibility in the enforcement structure; a lack of consistent
application of the laws throughout the central, provincial and local
governments; a lack of funding, training and education; the absence of
clear and effective criminal penalties; possible conflicts of interest;
burdensome and discriminatory agency requirements; overly-broad
compulsory licensing provisions; a failure of enforcement authorities
to coordinate; and the absence of an effective border control
mechanism.
China also fails to provide fair and equitable market access for
persons who rely on intellectual property protection. The most serious
market access problems are found in the areas of audiovisual products,
sound recordings, and published written materials. Particular concerns
include a hidden system of internal quotas, a lack of transparency, a
lack of consistency in application, monopoly control over the
importation and distribution of products embodying intellectual
property, and a prohibition on the production or distribution of
products embodying intellectual property that is not related to the
content of those products.
Pursuant to section 303(a) of the Trade Act, USTR has requested
consultations with the Chinese government concerning the issues under
investigation. USTR will seek information and advice from the
appropriate committees established pursuant to section 135 of the Trade
Act in preparing the U.S. presentations for such consultations.
Within 6 months after the date on which this investigation was
initiated (i.e., on or before December 30, 1994), pursuant to section
304 of the Trade Act, the USTR must determine on the basis of the
investigation and the consultations, whether any act, policy or
practice described in section 301 of the Trade Act exists and, if that
determination is affirmative, decide what action, if any, to take under
section 301 of the Trade Act. The deadline for making those
determinations may be extended up to 9 months after the initiation of
the investigation if the USTR determines that certain conditions are
met.
Requirements for Submissions
Interested persons are invited to submit written comments on the
acts, policies or practices of the Chinese government that are the
subject of this investigation, the amount of burden or restriction on
U.S. commerce caused by these acts, policies or practices, and the
determinations required under section 304 of the Trade Act.
Comments must be filed in accordance with the requirements set
forth in 15 CFR 2006.8(b) and are due no later than 12 noon, Monday,
August 8, 1994. Comments must be in English and provided in twenty
copies to: Chairman, section 301 Committee, Room 223, USTR, 600 17th
St., NW., Washington, DC 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 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.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 94-16826 Filed 7-11-94; 8:45 am]
BILLING CODE 3190-01-M
