674 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 

By the Board, Scott M. Zimmerman, Acting 

Director, Office of Proceedings. 

Jeffrey Herzig, 

Clearance Clerk. 

[FR Doc. 2020–29257 Filed 1–5–21; 8:45 am] 

BILLING CODE 4915–01–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. FD 36453] 

SRC Railway LLC—Lease and 

Operation Exemption—Strasburg Rail 

Road Company 

SRC Railway LLC (Railway LLC), a 

noncarrier, has filed a verified notice of 

exemption pursuant to 49 CFR 1150.31 

to lease from Strasburg Rail Road 

Company (SRC) and operate 

approximately 4.25 miles of rail line 

known as the Strasburg Line in 

Lancaster County, Pa. (the Line). The 

Line extends from approximately 

quarter-milepost 20 at Leaman Place 

(immediately north of the underpass at 

U.S. Highway 30 and west of the 

interchange connection with Norfolk 

Southern Railway Company and the 

National Railroad Passenger Corporation 

(NRPC milepost 56.8)), southwesterly to 

quarter-milepost 3 at East Strasburg. 

This transaction is related to a 

concurrently filed verified notice of 

exemption in Strasburg Rail Road 

Company—Continuance in Control 

Exemption—SRC Railway LLC, Docket 

No. FD 36454, in which SRC seeks to 

continue in control of Railway LLC 

upon Railway LLC’s becoming a Class 

III rail carrier. 

Railway LLC states that it will shortly 

execute agreements with SRC pursuant 

to which it will lease the Line from SRC. 

According to Railway LLC, the proposed 

agreements do not contain any 

provision that would limit future 

interchange on the Line with a thirdparty connecting carrier. 

Further, Railway LLC certifies that its 

projected annual revenue will not 

exceed $5 million and will not result in 

Railway LLC becoming a Class I or II rail 

carrier. 

The earliest this transaction may be 

consummated is January 20, 2021, the 

effective date of the exemption (30 days 

after the verified notice was filed). 

If the verified notice contains false or 

misleading information, the exemption 

is void ab initio. Petitions to revoke the 

exemption under 49 U.S.C. 10502(d) 

may be filed at any time. The filing of 

a petition to revoke will not 

automatically stay the effectiveness of 

the exemption. Petitions for stay must 

be filed no later than January 12, 2021. 

All pleadings, referring to Docket No. 

FD 36453, should be filed with the 

Surface Transportation Board via efiling on the Board’s website. In 

addition, a copy of each pleading must 

be served on Railway LLC’s 

representative, Bradon J. Smith, Fletcher 

& Sippel LLC, 29 North Wacker Drive, 

Suite 800, Chicago, IL 60606–3208. 

According to Railway LLC, this action 

is categorically excluded from 

environmental review under 49 CFR 

1105.6(c) and from historic preservation 

reporting requirements under 49 CFR 

1105.8(b). 

Board decisions and notices are 

available at www.stb.gov. 

Decided: December 31, 2020. 

By the Board, Scott M. Zimmerman, Acting 

Director, Office of Proceedings. 

Jeffrey Herzig, 

Clearance Clerk. 

[FR Doc. 2020–29256 Filed 1–5–21; 8:45 am] 

BILLING CODE 4915–01–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket Number USTR–2020–0042] 

Notice of Revision of Section 301 

Action: Enforcement of U.S. WTO 

Rights in Large Civil Aircraft Dispute 

AGENCY: Office of the United States 

Trade Representative (USTR). 

ACTION: Notice. 

SUMMARY: The U.S. Trade 

Representative has determined to revise 

the action being taken in this Section 

301 investigation to mirror the approach 

taken by the European Union (EU) in 

exercising its World Trade Organization 

(WTO) authorization in the Boeing 

dispute. In implementing this approach, 

the U.S. Trade Representative has 

determined to revise the action by 

adding certain products of certain EU 

member States to the list of products 

subject to additional duties. 

DATES: The revisions in Annex I are 

applicable with respect to products that 

are entered for consumption, or 

withdrawn from warehouse for 

consumption, on or after 12:01 a.m. 

eastern standard time on January 12, 

2021. 

FOR FURTHER INFORMATION CONTACT: For 

questions about the investigation and 

revisions announced in this notice, 

contact Associate General Counsel 

Megan Grimball, at (202) 395–5725, or 

Director for Europe Michael Rogers, at 

(202) 395–3320. For questions on 

customs procedures or the classification 

of products identified in the annexes, 

contact Traderemedy@cbp.dhs.gov. 

SUPPLEMENTARY INFORMATION

A. Proceedings in the Investigation 

On April 12, 2019, the U.S. Trade 

Representative announced the initiation 

of an investigation to enforce U.S. rights 

in the WTO dispute against the EU and 

certain EU member States addressed to 

subsidies on large civil aircraft. See 84 

FR 15028 (April 12 notice). The April 12 

notice contains background information 

on the investigation and the dispute 

settlement proceedings. 

The April 12 notice solicited 

comments on a proposed determination 

that, inter alia, the EU and certain 

member States have denied U.S. rights 

under the WTO Agreement, and in 

particular, under Articles 5 and 6.3 of 

the Agreement on Subsidies and 

Countervailing Measures and the 

General Agreement on Tariffs and Trade 

1994, and have failed to comply with 

the WTO Dispute Settlement Body 

(DSB) recommendations to bring the 

WTO-inconsistent subsidies into 

compliance with WTO obligations. The 

April 12 notice invited public 

comments on a proposed action in the 

form of an additional ad valorem duty 

of up to 100 percent on products of EU 

member States to be drawn from a list 

of 317 tariff subheadings and 9 

statistical reporting numbers of the 

Harmonized Tariff Schedule of the 

United States (HTSUS) included in the 

annex to that notice. 

On July 5, 2019, USTR published a 

notice inviting public comments on a 

second list of products also being 

considered for an additional ad valorem 

duty of up to 100 percent. See 84 FR 

32248. 

On October 2, 2019, the WTO 

Arbitrator issued a report concluding 

that the appropriate level of 

countermeasures in response to the 

WTO-inconsistent launch aid provided 

by the EU or certain member States to 

their large civil aircraft domestic 

industry is approximately $7.5 billion 

annually. 

On October 9, 2019, the U.S. Trade 

Representative published a 

determination that the EU and certain 

member States have denied U.S. rights 

under the WTO Agreement and have 

failed to implement DSB 

recommendations concerning certain 

subsidies to the EU large civil aircraft 

industry. The U.S. Trade Representative 

determined to take action in the form of 

additional duties on products of certain 

current or former member States of the 

EU, at levels of 10 or 25 percent ad 

valorem, effective October 18, 2019. See 

84 FR 54245 (October 9, 2019) and 84 

FR 55998 (October 18, 2019). 

On December 12, 2019, the U.S. Trade 

Representative announced a review of 


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the action and invited public comments 

regarding potential revisions. See 84 FR 

67992. As part of that review, on 

February 14, 2020, the U.S. Trade 

Representative announced a 

determination to revise the list of nonaircraft products subject to 25 percent 

additional duties and to increase 

additional duties on certain large civil 

aircraft from 10 to 15 percent, effective 

March 5 and March 18. See 85 FR 10204 

(February 21, 2020) and 85 FR 14517 

(March 12, 2020). The U.S. Trade 

Representative also determined that 

‘‘going forward, the action may be 

revised as appropriate immediately 

upon any EU imposition of additional 

duties on U.S. products in connection 

with the Large Civil Aircraft dispute or 

with the EU’s WTO challenge to the 

alleged subsidization of U.S. large civil 

aircraft.’’ 

On June 26, 2020, the U.S. Trade 

Representative published a notice 

announcing another review of the action 

and establishing a docket to receive 

public comments. See 85 FR 38488 

(June 26 notice). The June 26 notice 

included a proposal to impose 

additional duties of up to 100 percent 

on a new list of products of France, 

Germany, Spain and the United 

Kingdom, covered by an additional 30 

tariff subheadings with an approximate 

annual trade value of $3.1 billion in 

terms of estimated import trade value 

for calendar year 2018. See June 26 

notice, as amended by 85 FR 39661 (July 

1, 2020). 

On August 12, 2020, the U.S. Trade 

Representative announced certain 

revisions to the action. See 85 FR 50866 

(August 18, 2020). The notice reiterated 

the U.S. Trade Representative’s prior 

determination that ‘‘the action may be 

revised as appropriate immediately 

upon any EU imposition of additional 

duties on U.S. products.’’ 

On November 9, 2020, the EU 

announced that it would impose 

additional duties on goods of the United 

States, effective November 10, 2020. 

Specifically, the EU determined to 

impose additional duties of 15 percent 

on imports of certain large civil aircraft 

of the United States, and additional 

duties of 25 percent on other U.S. goods. 

The EU stated that its action has an 

annual trade value of $4 billion. The 

EU’s action followed a decision by the 

WTO arbitrator in United States— 

Measure Affecting Trade in Large Civil 

Aircraft (DS353), and a corresponding 

WTO authorization for the EU to 

suspend WTO concessions to the United 

States. 

The EU has represented that its 

retaliatory action mirrors the action 

taken by the United States in this 

investigation, but that is not accurate. 

Specifically, the EU’s action does not 

mirror the U.S. action because the 

methodology used by the EU to exercise 

its $4 billion authorization relies on a 

benchmark reference period affected by 

the economic downturn caused by the 

COVID pandemic. Under this 

methodology, the EU was able to cover 

a greater volume of imports than if, like 

the United States, it had used data from 

a period when trade was not affected by 

the pandemic. 

In addition, up to and until the exit 

of the United Kingdom from EU 

customs territory is finalized, goods of 

the United States are subject to 

additional EU duties when entering the 

United Kingdom. However, the EU’s 

trade action valuation does not account 

for U.S. exports to the United Kingdom. 

Therefore, the value of U.S. exports 

subject to tariffs is greater than the trade 

value the EU ascribes to the various 

covered tariff lines. 

The United States has expressed its 

concerns to the EU and has given the EU 

an opportunity to address these issues. 

The EU has declined to do so. 

B. Revision of Action 

In light of these developments, the 

U.S. Trade Representative determined to 

make a further revision of the action in 

this investigation as part of the ongoing 

efforts toward a satisfactory resolution 

of the dispute. The revision takes 

account of public comments received in 

the investigation, advice of advisory 

committees, and advice of the 

interagency Section 301 Committee. 

In particular, the U.S. Trade 

Representative has determined to mirror 

the EU approach to exercising its DSB 

authorization by adjusting the reference 

period used for the U.S. trade action to 

mirror the August 2019 to July 2020 

reference period used by the EU. In 

adopting this approach, the United 

States has made appropriate 

adjustments to ensure that the trade data 

from the revised reference period does 

not reflect reductions in trade resulting 

from the October 2019 trade action in 

the investigation. Using the estimated 

trade values from this reference period, 

the value of the U.S. trade action as last 

revised on August 12, 2020, is well 

below the $7.5 billion level authorized 

by the DSB. 

In order to exercise the DSB 

authorization to the United States, the 

U.S. Trade Representative has 

determined to add products to the list 

of products currently subject to 

additional duties, while otherwise 

maintaining the trade action as last 

revised on August 12, 2020. In 

considering actions most likely to result 

in the EU’s implementation of DSB 

recommendations or a mutually 

satisfactory resolution of the dispute, 

the U.S. Trade Representative has 

determined that the additional products 

should be goods of France and 

Germany, as these countries have 

provided the greatest level of WTOinconsistent large civil aircraft 

subsidies. 

As specified in the annexes to this 

notice, additional goods of France and 

Germany are subject to additional 

duties. These goods were drawn from 

the proposed lists in the April 12, 2019 

notice. 

In accordance with section 

306(b)(2)(F) of the Trade Act (19 U.S.C. 

2416(b)(2)(F)), the action includes 

reciprocal goods of the affected 

industry. The annual trade value of the 

tariff subheadings subject to additional 

duties under the revised action remains 

at approximately $7.5 billion, which is 

consistent with the WTO Arbitrator’s 

finding on the appropriate level of 

countermeasures in the United States’ 

dispute against the EU involving large 

civil aircraft. 

Annex I to this notice identifies the 

products affected by the revised action, 

the rate of duty to be assessed, and the 

current or former EU member States 

affected. Annex II, section 1, contains 

the unofficial descriptive list of the 

revisions made by this Notice. Annex II, 

section 2, contains an unofficial, 

consolidated description of the action, 

reflecting the changes in annex I. 

In order to implement this 

determination, effective January 12, 

2021, subchapter III of chapter 99 of the 

HTSUS is modified by annex I to this 

notice. The additional duties provided 

for in the HTSUS subheadings 

established by annex I apply in addition 

to all other applicable duties, fees, 

exactions and charges. 

Any product listed in annex I to this 

notice, except any product that is 

eligible for admission under ‘domestic 

status’ as defined in 19 CFR 146.43, 

which is subject to the additional duty 

imposed by this determination, and is 

admitted into a U.S. foreign trade zone 

on or after 12:01 a.m. eastern standard 

time on January 12, 2021, only may be 

admitted as ‘privileged foreign status’ as 

defined in 19 CFR 146.41. Such 

products will be subject upon entry for 

consumption to any ad valorem rates of 

duty or quantitative limitations related 

to the classification under the 

applicable HTSUS subheading. 

The U.S. Trade Representative will 

continue to consider the action taken in 

this investigation. 

Joseph Barloon, 

General Counsel, Office of the United States 

Trade Representative. 


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[FR Doc. 2020–29225 Filed 1–5–21; 8:45 am] 

BILLING CODE 3290–F0–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

Determination of Trade Surplus in 

Certain Sugar and Syrup Goods and 

Sugar-Containing Products of Chile, 

Morocco, Costa Rica, the Dominican 

Republic, El Salvador, Guatemala, 

Honduras, Nicaragua, Peru, Colombia, 

and Panama 

AGENCY: Office of the United States 

Trade Representative. 

ACTION: Notice. 

SUMMARY: In accordance with the 

Harmonized Tariff Schedule of the 

United States (HTSUS), the Office of the 

United States Trade Representative 

(USTR) is providing notice of its 

determination of the trade surplus in 

certain sugar and syrup goods and 

sugar-containing products of Chile, 

Morocco, Costa Rica, the Dominican 

Republic, El Salvador, Guatemala, 

Honduras, Nicaragua, Peru, Colombia 

and Panama. The level of a country’s 

trade surplus in these goods relates to 

the quantity of sugar and syrup goods 

and sugar-containing products for 

which the United States grants 

preferential tariff treatment under (i) the 

United States-Chile Free Trade 

Agreement (Chile FTA); (ii) the United 

States-Morocco Free Trade Agreement 

(Morocco FTA); (iii) the Dominican 

Republic-Central America-United States 

Free Trade Agreement (CAFTA–DR); 

(iv) the United States-Peru Trade 

Promotion Agreement (Peru TPA); (v) 

the United States-Colombia Trade 

Promotion Agreement (Colombia TPA); 

and (vi) the United States-Panama Trade 

Promotion Agreement (Panama TPA). 

DATES: This notice is applicable on 

January 1, 2021. 

FOR FURTHER INFORMATION CONTACT: Erin 

H. Nicholson, Office of Agricultural 

Affairs, (202) 395–9419 or 

Erin.H.Nicholson@ustr.eop.gov. 

SUPPLEMENTARY INFORMATION: 

I. Chile FTA 

Pursuant to section 201 of the United 

States-Chile Free Trade Agreement 

Implementation Act (Pub. L. 108–77; 19 

U.S.C. 3805 note), Presidential 

Proclamation No. 7746 of December 30, 

2003 (68 FR 75789) implemented the 

Chile FTA on behalf of the United States 

and modified the HTSUS to reflect the 

tariff treatment provided for in the Chile 

FTA. 

Note 12(a) to subchapter XI of HTSUS 

chapter 99 requires USTR annually to 

publish a determination of the amount 

of Chile’s trade surplus, by volume, 

with all sources for goods in HTSUS 

subheadings 1701.11, 1701.12, 1701.91, 

1701.99, 1702.20, 1702.30, 1702.40, 

1702.60, 1702.90, 1806.10, 2101.12, 

2101.20, and 2106.90, except that 

Chile’s imports of goods classified 

under HTSUS subheadings 1702.40 and 

1702.60 that qualify for preferential 

tariff treatment under the Chile FTA are 

not included in the calculation of 

Chile’s trade surplus. Proclamation 8771 

of December 29, 2011 (77 FR 413) 

reclassified HTSUS subheading 1701.11 

as 1701.13 and 1701.14. 

Note 12(b) to subchapter XI of HTSUS 

chapter 99 provides duty-free treatment 

for certain sugar and syrup goods and 

sugar-containing products of Chile 

entered under subheading 9911.17.05 in 

any calendar year (CY) (beginning in 

CY2015) is the quantity of goods equal 

to the amount of Chile’s trade surplus in 

subdivision (a) of the note. During 

CY2019, the most recent year for which 

data is available, Chile’s imports of the 

sugar and syrup goods and sugarcontaining products described above 

exceeded its exports of those goods by 

633,441 metric tons according to data 

published by its customs authority, the 

Servicio Nacional de Aduana. Based on 

this data, USTR has determined that 

Chile’s trade surplus is negative. 

Therefore, in accordance with U.S. Note 

12(b) to subchapter XI of HTSUS 

chapter 99, goods of Chile are not 

eligible to enter the United States dutyfree under subheading 9911.17.05 in 

CY2021. 

II. Morocco FTA 

Pursuant to section 201 of the United 

States-Morocco Free Trade Agreement 

Implementation Act (Pub. L. 108–302; 

19 U.S.C. 3805 note), Presidential 

Proclamation No. 7971 of December 22, 

2005 (70 FR 76651) implemented the 

Morocco FTA on behalf of the United 

States and modified the HTSUS to 

reflect the tariff treatment provided for 

in the Morocco FTA. 

Note 12(a) to subchapter XII of 

HTSUS chapter 99 requires USTR 

annually to publish a determination of 

the amount of Morocco’s trade surplus, 

by volume, with all sources for goods in 

HTSUS subheadings 1701.11, 1701.12, 

1701.91, 1701.99, 1702.40, and 1702.60, 

except that Morocco’s imports of U.S. 

goods classified under HTSUS 

subheadings 1702.40 and 1702.60 that 

qualify for preferential tariff treatment 

under the Morocco FTA are not 

included in the calculation of Morocco’s 

trade surplus. Proclamation 8771 of 

December 29, 2011 (77 FR 413) 

reclassified HTSUS subheading 1701.11 

as 1701.13 and 1701.14. 

Note 12(b) to subchapter XII of 

HTSUS chapter 99 provides duty-free 

treatment for certain sugar and syrup 

goods and sugar-containing products of 

Morocco entered under subheading 

9912.17.05 in an amount equal to the 

lesser of Morocco’s trade surplus or the 

specific quantity set out in that note for 

that calendar year. 

Note 12(c) to subchapter XII of 

HTSUS chapter 99 provides preferential 

tariff treatment for certain sugar and 

syrup goods and sugar-containing 

products of Morocco entered under 

subheading 9912.17.10 through 

9912.17.85 in an amount equal to the 

amount by which Morocco’s trade 

surplus exceeds the specific quantity set 

out in that note for that calendar year. 

During CY2019, the most recent year 

for which data is available, Morocco’s 

imports of the sugar and syrup goods 

and sugar-containing products 

described above exceeded its exports of 

those goods by 694,075 metric tons 

according to data published by its 

customs authority, the Office des 

Changes. Based on this data, USTR has 

determined that Morocco’s trade surplus 

is negative. Therefore, in accordance 

with U.S. Note 12(b) and U.S. Note 12(c) 

to subchapter XII of HTSUS chapter 99, 

goods of Morocco are not eligible to 

enter the United States duty-free under 

subheading 9912.17.05 or at preferential 

tariff rates under subheading 9912.17.10 

through 9912.17.85 in CY2021. 

II. CAFTA–DR 

Pursuant to section 201 of the 

Dominican Republic-Central AmericaUnited States Free Trade Agreement 

Implementation Act (Pub. L. 109–53; 19 

U.S.C. 4031), Presidential Proclamation 

No. 7987 of February 28, 2006 (71 FR 

10827), Presidential Proclamation No. 

7991 of March 24, 2006 (71 FR 16009), 

Presidential Proclamation No. 7996 of 

March 31, 2006 (71 FR 16971), 

Presidential Proclamation No. 8034 of 

June 30, 2006 (71 FR 38509), 

Presidential Proclamation No. 8111 of 

February 28, 2007 (72 FR 10025), 

Presidential Proclamation No. 8331 of 

December 23, 2008 (73 FR 79585), and 

Presidential Proclamation No. 8536 of 

June 12, 2010 (75 FR 34311), 

implemented the CAFTA–DR on behalf 

of the United States and modified the 

HTSUS to reflect the tariff treatment 

provided for in the CAFTA–DR. 

Note 25(b)(i) to subchapter XXII of 

HTSUS chapter 98 requires USTR 

annually to publish a determination of 

the amount of each CAFTA–DR 

country’s trade surplus, by volume, with 

all sources for goods in HTSUS 


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