[Federal Register Volume 86, Number 129 (Friday, July 9, 2021)]
[Notices]
[Pages 36313-36315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14550]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Suspension of Action: Enforcement of U.S. WTO Rights in the Large 
Civil Aircraft Dispute

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice.

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SUMMARY: On June 15 and June 17, 2021, the United States reached 
understandings on cooperative frameworks with, respectively, the 
European Union (EU) and the United Kingdom (UK) regarding the World 
Trade Organization (WTO) disputes involving large civil aircraft (LCA). 
In accordance with the understandings reached with the EU and the UK, 
the U.S. Trade Representative has determined to suspend for a period of 
five years the action being taken in the Section 301 investigation 
involving the enforcement of U.S. WTO rights in the LCA dispute.

DATES: The beginning of the five-year suspension period is July 4, 
2021, with respect to tariffs on goods of the UK, and July 11, 2021, 
with respect to tariffs on goods of EU member States.

FOR FURTHER INFORMATION CONTACT: For questions about the investigation 
or this notice, contact Senior Associate General Counsel Brian 
Janovitz, at (202) 395-5725, or Director for Europe Michael Rogers, at 
(202) 395-3320.

SUPPLEMENTARY INFORMATION:

A. Proceedings in the Investigation

    For background on the proceedings in this investigation, please see 
prior notices including: Notice of initiation, 84 FR 15028 (April 12, 
2019); notice of determination and action, 84 FR 54245 (October 9, 
2019); and notices concerning revisions or modifications of action, 85 
FR 10204 (February 21, 2020), 85 FR 50866 (August 18, 2020), 86 FR 674 
(January 6, 2021), 86 FR 9420 (February 12, 2021), 86 FR 13961 (March 
11, 2021), and 86 FR 14513 (March 16, 2021).

B. Suspension of Action

    On June 15 and June 17, 2021, the United States reached similar 
understandings on cooperative frameworks with the EU and the UK, 
respectively, regarding trade in large civil aircraft and the parties' 
WTO disputes. The understandings provide, inter alia, that each party 
intends to:
    <bullet> Provide any financing to its LCA producer for the 
production or development of large civil aircraft on market terms.

[[Page 36314]]

    <bullet> provide any funding for research and development (R&D) for 
large civil aircraft to its LCA producer through an open and 
transparent process and intends to make the results of fully government 
funded R&D widely available, to the extent permitted by law, and 
intends not to provide R&D funding or other support that is specific, 
to its LCA producer in a way that would cause negative effects to the 
other side.
    <bullet> collaborate on jointly analyzing and addressing non-market 
practices of third parties that may harm their respective large civil 
aircraft industries. The two sides will implement the annexed 
understanding on cooperation on non-market economies through the 
Working Group.
    <bullet> suspend application of countermeasures for a period of 
five years.
    To effectuate the suspension of the U.S. countermeasures for the 
five-year period, the U.S. Trade Representative has determined to 
terminate the current tariff action and to undertake procedures in 
advance of the end of the five-year period for the possible re-
imposition of tariffs under Section 301.
    In particular, pursuant to sections 307(a)(1) and 301(a)(2)(B) of 
the Trade Act, the U.S. Trade Representative has determined to 
terminate the current action, which was first imposed in the notice of 
October 9, 2019 (84 FR 54245) and modified in subsequent notices, 
effective July 4, 2021, with respect to goods of the UK, and effective 
July 11, 2021, with respect to goods of EU member States. Pursuant to 
Section 306 of the Trade Act, and in advance of the end of the five-
year suspension period, the U.S. Trade Representative will review 
implementation by the EU and UK of the framework understandings and 
their respective measures related to the matters covered in the LCA 
dispute, and consider a re-imposition of a tariff action under Section 
301.
    The decision of the U.S Trade Representative to effectuate the 
five-year suspension in accordance with the framework understandings 
considers the advice of the interagency Section 301 Committee, advisory 
committees, and public comments received in response to prior notices 
issued in the investigation, and consultations with the domestic 
industry concerned regarding the suspension.
    The Annex to this notice modifies the Harmonized Tariff Schedule of 
the United States to reflect the suspension of the tariff action. The 
additional duties imposed by subheadings 9903.89.05, 9903.89.07, 
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 
9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46, 
9903.89.49, 9903.89.50 and 9903.89.55, and as provided by their 
associated subchapter notes, will not apply to products of the UK that 
are entered for consumption, or withdrawn from warehouse for 
consumption, on or after 12:01 a.m. eastern daylight time on July 4, 
2021. The additional duties imposed by subheadings 9903.89.05, 
9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.37, 9903.89.40, 
9903.89.43, 9903.89.46, 9903.89.52, 9903.89.55, 9903.89.57, 9903.89.59, 
9903.89.61, and 9903.89.63, and as provided by their associated 
subchapter notes, will not apply to products of Austria, Belgium, 
Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, 
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, 
Romania, Slovakia, Slovenia, Spain, or Sweden that are entered for 
consumption, or withdrawn from warehouse for consumption, on or after 
12:01 a.m. eastern daylight time on July 11, 2021.
    Any product of the UK that was admitted into a U.S. foreign trade 
zone in `privileged foreign status' as defined in 19 CFR 146.41, before 
12:01 a.m. eastern standard time on March 4, 2011, will remain subject 
to the applicable duties in subheadings 9903.89.05, 9903.89.07, 
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 
9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46, 
9903.89.49, 9903.89.50 and 9903.89.55 upon entry for consumption. Any 
product of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, 
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, 
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, or 
Sweden, that was admitted into a U.S. foreign trade zone in `privileged 
foreign status' as defined in 19 CFR 146.41, before 12:01 a.m. eastern 
standard time on March 11, 2021, will remain subject to the applicable 
duties in subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13, 
9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 
9903.89.34, 9903.89.37, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52, 
9903.89.55, 9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63 upon 
entry for consumption.
    Any product of the UK covered by paragraph 3 of the Annex to this 
notice, that is admitted into a U.S. foreign trade zone on or after 
12:01 a.m. eastern daylight time on July 4, 2021, and any product of 
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech 
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, 
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, 
Poland, Portugal, Romania, Slovakia, Slovenia, Spain, or Sweden, 
covered by paragraph 3 of the Annex to this notice, that is admitted 
into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight 
time on July 11, 2021, may be admitted in any status, as applicable, as 
defined in 19 CFR 146, Subpart D.
    In accordance with section 306 of the Trade Act, in addition to the 
five-year review, the U.S. Trade Representative will monitor 
implementation by the EU and UK of the framework understandings and 
their respective measures related to the matters covered in the LCA 
dispute, including whether the EU or UK provides new financing to an 
LCA producer for the production or development of LCA that is not on 
market terms. If USTR considers that the implementation of the 
framework understandings or measures related to the WTO dispute are not 
satisfactory, then USTR will take the most effective action under 
Section 301 to enforce U.S. WTO rights, which could include the re-
imposition of duties.

Annex

    1. The additional duties imposed by subheadings 9903.89.05 
through 9903.89.63 of the Harmonized Tariff Schedule of the United 
States (HTSUS), and as provided by their associated subchapter 
notes, on products of Austria, Belgium, Bulgaria, Croatia, Republic 
of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, 
Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, 
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, 
Slovenia, Spain, Sweden or the United Kingdom are terminated as 
follows. For entries from the United Kingdom, the termination is 
effective for entries on or after July 4, 2021. For entries from 
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech 
Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, 
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, 
or Sweden the termination is effective for entries on or after July 
11, 2021.
    2. Note 21(a) to subchapter III of chapter 99 of the HTSUS is 
modified by deleting ``notes 21(u) and 21(v) of this subdivision,'' 
and by inserting ``notes 21(u), 21(v), 21(w) and 21(x) of this 
subdivision,'' in lieu thereof.
    3. Note 21 to subchapter III of chapter 99 of the HTSUS is 
modified by inserting the following new subchapter notes in 
alphabetical order:


[[Page 36315]]


    ``(w) The U.S. Trade Representative has determined that the 
additional duties imposed by subheadings 9903.89.05, 9903.89.07, 
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 
9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55, and 
as provided by their associated subchapter notes, shall not apply to 
articles the product of the United Kingdom that are entered on or 
after 12:01 a.m. eastern daylight time on or after July 4, 2021.''
    ``(x) The U.S. Trade Representative has determined that 
additional duties imposed by subheadings 9903.89.05, 9903.89.07, 
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.37, 
9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52, 9903.89.55, 
9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63, and as provided 
by their associated subchapter notes, shall not apply to articles 
the product of Austria, Belgium, Bulgaria, Croatia, Republic of 
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, 
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, 
Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, 
Spain, or Sweden that are entered on or after 12:01 a.m. eastern 
daylight time on or after July 11, 2021.''

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-14550 Filed 7-8-21; 8:45 am]
BILLING CODE 3290-F1-P