30356 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices 

HTSUS 

subheading Product description 

7117.19.90 ................. Imitation jewelry (o/than cuff links and studs, toy jewelry, religious articles & rope, curb, cable, chain, etc.), of base metal 

(wheth. or n/plated w/prec.metal), nesoi. 

7117.90.90 ................. Imitation jewelry not of base metal or plastics, nesoi, over 20 cents/dozen pcs or pts, o/t toy jewelry or of plastics. 

[FR Doc. 2021–11861 Filed 6–4–21; 8:45 am] 

BILLING CODE 3290–F1–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket Number USTR–2021–0003] 

Notice of Action in the Section 301 

Investigation of India’s Digital Services 

Tax 

AGENCY: Office of the United States 

Trade Representative (USTR). 

ACTION: Notice. 

SUMMARY: On January 6, 2021, the U.S. 

Trade Representative announced a 

determination that India’s Digital 

Services Tax (DST) is unreasonable or 

discriminatory and burdens or restricts 

U.S. commerce. This notice announces 

the U.S. Trade Representative’s 

determination to take action in the form 

of additional duties of 25 percent on the 

products of India specified in Annex A 

to this notice. The U.S. Trade 

Representative has further determined 

to suspend application of the additional 

duties for a period of up to 180 days. 

DATES:

June 2, 2021: The U.S. Trade 

Representative determined to take 

action in the form of additional duties 

of 25 percent on products of India 

specified in Annex A. 

November 29, 2021: The end of the 

180-day suspension period for the 

additional duties. 

FOR FURTHER INFORMATION CONTACT: For 

questions concerning the investigation, 

please contact Benjamin Allen, Thomas 

Au, or Patrick Childress, Assistant 

General Counsels at: (202) 395–9439, 

(202) 395–0380, and (202) 385–9531, 

respectively; Robert Tanner, Director, 

Services and Investment at (202) 395– 

6125; or Brendan Lynch, Deputy 

Assistant U.S. Trade Representative for 

South and Central Asian Affairs at (202) 

395–2851. For specific questions on 

customs classification or 

implementation of additional duties on 

products, contact traderemedy@cbp.gov. 

SUPPLEMENTARY INFORMATION: 

I. Proceedings in the Investigation 

India has adopted a DST that imposes 

a two percent tax on revenue generated 

from a broad range of digital services 

offered in India, including digital 

platform services, digital content sales, 

digital sales of a company’s own goods, 

data-related services, software-as-aservice, and several other categories of 

digital services. India’s DST only 

applies to ‘‘non-resident’’ companies. 

On June 2, 2020, the U.S. Trade 

Representative initiated an investigation 

of India’s DST pursuant to section 

302(b)(1)(A) of the Trade Act of 1974, as 

amended (Trade Act). See 85 FR 34709 

(June 5, 2020) (notice of initiation). The 

notice of initiation solicited written 

comments on, inter alia, the following 

aspects of India’s DST: Discrimination 

against U.S. companies; retroactivity; 

and possibly unreasonable tax policy. 

With respect to tax policy, USTR 

solicited comments on, inter alia, 

whether the DST diverged from 

principles reflected in the U.S. and 

international tax systems including 

extraterritoriality; taxing revenue not 

income; and a purpose of penalizing 

particular technology companies for 

their commercial success. Interested 

persons filed over 380 written 

submissions in response. The public 

submissions are available on 

www.regulations.gov in docket number 

USTR–2020–0022. 

Under section 303 of the Trade Act, 

the U.S. Trade Representative requested 

consultations with the government of 

India regarding the issues involved in 

the investigation. Consultations were 

held on November 5, 2020. Based on 

information obtained during the 

investigation, USTR prepared a 

comprehensive report on India’s DST, 

which is posted on the USTR website at 

https://ustr.gov/issue-areas/ 

enforcement/section-301-investigations/ 

section-301-digital-services-taxes. The 

report includes a full description of 

India’s DST, and supports findings that 

India’s DST is unreasonable and 

discriminatory and burdens or restricts 

U.S commerce. On January 6, 2021, 

based on the information obtained 

during the investigation and the advice 

of the Section 301 Committee, the U.S. 

Trade Representative determined that 

India’s DST is unreasonable or 

discriminatory and burdens or restricts 

U.S. commerce, and therefore is 

actionable under sections 301(b) and 

304(a) of the Trade Act. See 86 FR 2478 

(January 12, 2021). 

On March 31, 2021, USTR issued a 

notice proposing that appropriate action 

would include additional ad valorem 

duties of up to 25 percent on products 

of India to be drawn from a list of 40 

tariff subheadings of the Harmonized 

Tariff Schedule of the United States 

(HTSUS) included in the annex to that 

notice. The March 31, 2021 notice 

requested comments on the proposed 

action as well as on other potential 

actions in the investigation. Witnesses 

provided testimony at public hearings 

held on May 3 and May 10, 2021, and 

interested persons filed written 

comments. Transcripts from the 

hearings are available on the USTR 

website at: https://ustr.gov/issue-areas/ 

enforcement/section-301-investigations/ 

section-301-digital-services-taxes. The 

written public submissions are available 

at: https://comments.ustr.gov/s/ 

docket?docketNumber=USTR-2021- 

0003 and https://comments.ustr.gov/s/ 

docket?docketNumber=USTR-2021- 

0008. 

II. Determination of Action To Be 

Taken in the Investigation 

In accordance with section 301(b) of 

the Trade Act, the U.S. Trade 

Representative has determined that 

action is appropriate in this 

investigation. Section 301(b) provides 

that upon determining that the acts, 

policies, and practices under 

investigation are actionable and that 

action is appropriate, the U.S. Trade 

Representative shall take all appropriate 

and feasible action authorized under 

section 301(c) of the Trade Act, subject 

to the specific direction, if any, of the 

President regarding such action, and all 

other appropriate and feasible action 

within the power of the President that 

the President may direct the U.S. Trade 

Representative to take under section 

301(b), to obtain the elimination of that 

act, policy, or practice. Section 

304(a)(2)(B) provides that the U.S. Trade 

Representative shall make the 

determination of what action to take on 

or before the date that is 12 months after 

the date on which the investigation was 

initiated, or in this case, by June 2, 

2021. 

Pursuant to sections 301(b) and (c) of 

the Trade Act, and in accordance with 

the advice of the Section 301 

Committee, the U.S. Trade 

Representative has determined that 

appropriate action is the imposition of 

ad valorem duties of 25 percent on 


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Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices 30357 

products of India specified in Annex A 

to this notice. Annex A contains a list 

of 26 tariff subheadings, with an 

estimated trade value for calendar year 

2019 of approximately $119 million. In 

making this determination, the U.S. 

Trade Representative considered the 

public comments submitted in the 

investigation, as well as advice of 

advisory committees. In determining the 

level of trade covered by the additional 

duties, the U.S. Trade Representative 

considered the value of digital 

transactions covered by India’s DST and 

the amount of taxes assessed by India on 

U.S. companies. Estimates indicate that 

the value of the DST payable by U.S.- 

based company groups to India will be 

up to approximately $55 million per 

year. The level of trade covered by the 

action takes into account estimates of 

the amount of tariffs to be collected on 

goods of India and the estimates of the 

amount of taxes assessed by India. 

Section 305(a) of the Trade Act 

provides, in pertinent part, that the U.S. 

Trade Representative may delay 

implementation of the action to be taken 

for up to 180 days ‘‘if the Trade 

Representative determines . . . that a 

delay is necessary or desirable . . . to 

obtain . . . [a] satisfactory solution with 

respect to the acts, policies, or practices 

that are the subject of the action.’’ 

Pursuant to section 305(a), the U.S. 

Trade Representative has determined to 

suspend the additional duties for up to 

180 days (that is, up to November 29, 

2021) to allow additional time for 

multilateral and bilateral discussions 

that could lead to a satisfactory 

resolution of this matter. 

In order to implement this 

determination, subchapter III of chapter 

99 of the HTSUS is modified by Annex 

A of this notice. Annex A is effective 

with respect to goods entered for 

consumption, or withdrawn from 

warehouse for consumption, on or after 

12:01 a.m. eastern standard time on 

November 29, 2021, which is 180 days 

after the determination of action. In the 

event the U.S. Trade Representative 

determines that the suspension of the 

additional duties should be for less than 

a period of 180 days, USTR will issue 

a subsequent notice amending the 

effective date. For informational 

purposes, Annex B contains a list of the 

tariff subheadings covered by the tariff 

action along with short product 

descriptions. In all cases, the formal 

language in Annex A governs the tariff 

treatment of products covered by the 

action. As specified in Annex A, 

products provided for in new HTSUS 

heading 9903.90.03 will be subject to an 

additional ad valorem duty of 25 

percent. The additional duties provided 

for in the new HTSUS heading 

established by Annex A apply in 

addition to all other applicable duties, 

fees, exactions, and charges. Any 

product listed in Annex A, 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 November 

29, 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 monitor the effect of the 

trade action, the progress of discussions 

in the Organisation for Economic Cooperation and Development and G20, 

the progress of discussions with India, 

and may adopt appropriate 

modifications. If a modification to the 

action may be appropriate, the U.S. 

Trade Representative will consider the 

comments received in response to the 

March 31, 2021 notice. 

Greta Peisch, 

General Counsel, Office of the United States 

Trade Representative. 

Annex A 

Effective with respect to goods 

entered for consumption, or withdrawn 

from warehouse for consumption, on or 

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

November 29, 2021, subchapter III of 

chapter 99 of the Harmonized Tariff 

Schedule of the United States (HTSUS) 

is modified: 

1. By inserting the following new U.S. 

notes 24(a) and 24(b) to subchapter III 

of chapter 99 in numerical sequence: 

‘‘24 (a) For the purposes of heading 

9903.90.03, products of India, as 

specified in this note, shall be subject to 

additional duties as provided herein. 

All products of India that are classified 

in the subheadings enumerated in this 

note are subject to the additional duties 

imposed by heading 9903.90.03. The 

duties imposed by heading 9903.90.03 

shall be in addition to the general duty 

rates provided for in the applicable 

provisions of the tariff schedule. 

Products of India that are classified in 

the subheadings enumerated in this note 

and that are eligible for temporary duty 

exemptions or reductions under 

subchapter II to chapter 99 shall be 

subject to the additional duties imposed 

by heading 9903.90.03, and any such 

duty exemption or reduction shall apply 

only to the permanent general rate 

prescribed in provisions of chapters 1 

through 97 of the tariff schedule. 

The additional duties imposed by 

heading 9903.90.03 do not apply to 

goods for which entry is properly 

claimed under a provision of chapter 98 

of the HTSUS, except for goods entered 

under subheadings 9802.00.40, 

9802.00.50 and 9802.00.60 and heading 

9802.00.80. For subheadings 9802.00.40, 

9802.00.50 and 9802.00.60, the 

additional duties apply to the value of 

repairs, alterations or processing 

performed in India and as described in 

the applicable subheading. For heading 

9802.00.80, the additional duties apply 

to the value of the article less the cost 

or value of such products of the United 

States, as described in heading 

9802.00.80. 

Products of India that are provided for 

in heading 9903.90.03 and classified in 

one of the subheadings enumerated in 

note 24(b) to this subchapter shall 

continue to be subject to antidumping, 

countervailing or other duties 

(including duties imposed by other 

provisions of subchapter III of this 

chapter and safeguard duties set forth in 

provisions of subchapter IV of this 

chapter), fees, exactions and charges 

that apply to such products, as well as 

to the additional duties imposed herein. 

(b) Heading 9903.90.03 shall apply to 

all products of India that are classified 

in the subheadings enumerated below: 

0306.16.00 

0306.35.00 

0306.95.00 

1006.20.20 

4421.91.40 

4421.91.94 

4503.10.40 

4813.10.00 

4813.90.00 

7101.22.30 

7101.22.60 

7103.99.50 

7104.90.50 

7113.19.21 

7113.19.25 

7114.20.00 

7116.20.05 

7116.20.15 

7410.21.30 

9401.69.20 

9401.69.40 

9401.69.60 

9401.69.80 

9403.50.40 

9403.50.90 

9403.83.00’’. 

2. by inserting the following new 

heading 9903.90.03 in numerical 

sequence, with the material in the new 

heading inserted in the columns of the 

HTSUS labeled ‘‘Heading/Subheading’’, 


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30358 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices 

‘‘Article Description’’, and ‘‘Rates of 

Duty 1-General’’, respectively: 

Heading/ 

subheading Article description 

Rates of duty 

1 

2 

General Special 

‘‘9903.90.03 ................... ‘‘Articles the product of India, as provided for in 

U.S. note 24(a) to this subchapter and as provided for in the subheadings enumerated in 

U.S. note 24(b) to this subchapter.

The duty provided in the 

applicable subheading 

+ 25%’’.

Annex B 

Note: The product descriptions that 

are contained in this Annex are 

provided for informational purposes 

only, and are not intended to delimit in 

any way the scope of the action. In all 

cases, the formal language in Annex A 

governs the tariff treatment of products 

covered by the action. Any questions 

regarding the scope of particular HTSUS 

subheadings should be referred to U.S. 

Customs and Border Protection. In the 

product descriptions, the abbreviation 

‘‘nesoi’’ means ‘‘not elsewhere specified 

or included’’. 

HTSUS 

subheading Product description 

0306.16.00 ................. Cold-water shrimps and prawns, cooked in shell or uncooked, dried, salted or in brine, frozen. 

0306.35.00 ................. Cold water shrimps and prawns, shell-on or peeled, live, or chilled. 

0306.95.00 ................. Other shrimps and prawns, shell-on or peeled. 

1006.20.20 ................. Basmati rice, husked. 

4421.91.40 ................. Blinds, shutters, screens and shades of bamboo, other than those with wooden frames in the center of which are fixed 

louver boards or slats. 

4421.91.94 ................. Edge-glued lumber of bamboo. 

4503.10.40 ................. Corks and stoppers of natural cork, tapered & of a thickness (or length) greater than the maximum diam., over 19 mm 

maximum diam., nesoi. 

4813.10.00 ................. Cigarette paper in the form of booklets or tubes. 

4813.90.00 ................. Cigarette paper, whether or not cut to size, nesoi. 

7101.22.30 ................. Cultured pearls, worked, graded and temporarily strung for convenience of transport. 

7101.22.60 ................. Cultured pearls, worked, not strung, mounted or set. 

7103.99.50 ................. Precious or semiprecious stones, nesoi, worked, whether or not graded, but n/strung (ex. ungraded temporarily strung), 

mtd. or set. 

7104.90.50 ................. Synth. or reconstruct. precious or semiprecious stones, wkd, whether or not graded, but n/strung (ex. ungraded temp. 

strung), mtd./set, nesoi. 

7113.19.21 ................. Gold rope necklaces and neck chains. 

7113.19.25 ................. Gold mixed link necklaces and neck chains. 

7114.20.00 ................. Goldsmiths’ or silversmiths’ wares of base metal clad with precious metal. 

7116.20.05 ................. Jewelry articles of precious or semiprecious stones, valued not over $40 per piece. 

7116.20.15 ................. Jewelry articles of precious or semiprecious stones, valued over $40 per piece. 

7410.21.30 ................. Refined copper foil, clad laminates, w/thickness of 0.15 mm or less, backed. 

9401.69.20 ................. Seats nesoi, of bent-wood. 

9401.69.40 ................. Chairs nesoi, w/teak frames, not upholstered. 

9401.69.60 ................. Chairs nesoi, w/wooden frames (o/than teak), not upholstered. 

9401.69.80 ................. Seats (o/than chairs) nesoi, w/wooden frames, not upholstered. 

9403.50.40 ................. Furniture (o/than 9401 or 9402) of bentwood nesoi, of a kind used in the bedroom. 

9403.50.90 ................. Furniture (o/than 9401 or 9402) of wood (o/than bentwood), of a kind used in the bedroom & not designed for motor vehicle use. 

9403.83.00 ................. Rattan furniture and parts thereof. 

[FR Doc. 2021–11858 Filed 6–4–21; 8:45 am] 

BILLING CODE 3290–F1–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket Number USTR–2021–0005] 

Notice of Action in the Section 301 

Investigation of Spain’s Digital 

Services Tax 

AGENCY: Office of the United States 

Trade Representative (USTR). 

ACTION: Notice. 

SUMMARY: On January 14, 2021, the U.S. 

Trade Representative announced a 

determination that Spain’s Digital 

Services Tax (DST) is unreasonable or 

discriminatory and burdens or restricts 

U.S. commerce. This notice announces 

the U.S. Trade Representative’s 

determination to take action in the form 

of additional duties of 25 percent on the 

products of Spain specified in Annex A 

to this notice. The U.S. Trade 

Representative has further determined 

to suspend application of the additional 

duties for a period of up to 180 days. 

DATES: 

June 2, 2021: The U.S. Trade 

Representative determined to take 

action in the form of additional duties 

of 25 percent on products of Spain 

specified in Annex A. 

November 29, 2021: The end of the 

180-day suspension period for the 

additional duties. 

FOR FURTHER INFORMATION CONTACT: For 

questions concerning the investigation, 

please contact Benjamin Allen, Thomas 

Au, or Patrick Childress, Assistant 

General Counsels at: (202) 395–9439, 

(202) 395–0380, and (202) 385–9531, 

respectively; Robert Tanner, Director, 


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