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HTSUS subheading Product description 

7019.90.50 ................. Glass fibers (including glass wool), nesoi, and articles thereof, nesoi. 

7403.29.01 ................. Copper alloys (o/than copper-zinc, copper-tin alloys), unwrought nesoi. 

8418.10.00 ................. Combined refrigerator-freezers, fitted with separate external doors, electric or other. 

9003.11.00 ................. Frames and mountings, of plastics, for spectacles, goggles or the like. 

9005.10.00 ................. Binoculars. 

9005.80.40 ................. Optical telescopes, including monoculars. 

9005.80.60 ................. Monoculars and astronomical instruments other than binoculars and optical telescopes but not including instruments for 

radio-astronomy. 

9010.60.00 ................. Projection screens. 

9012.10.00 ................. Microscopes other than optical microscopes; diffraction apparatus. 

9015.40.80 ................. Photogrammetrical surveying instruments and appliances, other than electrical. 

9015.80.20 ................. Optical surveying, hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, 

nesoi. 

9027.50.80 ................. Nonelectrical instruments and apparatus using optical radiations (ultraviolet, visible, infrared), nesoi. 

[FR Doc. 2021–11856 Filed 6–4–21; 8:45 am] 

BILLING CODE 3290–F1–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket Number USTR–2021–0007] 

Notice of Action in the Section 301 

Investigation of the United Kingdom’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 the United 

Kingdom’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 the 

United Kingdom 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 the United 

Kingdom 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 Michael Rogers, Director for 

Europe and the Middle East at (202) 

395–2684. For specific questions on 

customs classification or 

implementation of additional duties on 

products, contact traderemedy@cbp.gov. 

SUPPLEMENTARY INFORMATION: 

I. Proceedings in the Investigation 

The United Kingdom has adopted a 

DST that applies a two percent tax on 

the revenues of certain search engines, 

social media platforms and online 

marketplaces. The United Kingdom’s 

DST applies only to companies with 

digital services revenues exceeding £500 

million and United Kingdom digital 

services revenues exceeding £25 

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

Representative initiated an investigation 

of the United Kingdom’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 the United 

Kingdom’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 

the United Kingdom regarding the 

issues involved in the investigation. 

Consultations were held on December 4, 

2020. Based on information obtained 

during the investigation, USTR prepared 

a comprehensive report on the United 

Kingdom’s DST, which is posted on the 

USTR website at https://ustr.gov/issueareas/enforcement/section-301- 

investigations/section-301- 

digitalservices-taxes. The report 

includes a full description of the United 

Kingdom’s DST, and supports findings 

that the United Kingdom’s DST is 

unreasonable and discriminatory and 

burdens or restricts U.S commerce. On 

January 14, 2021, based on the 

information obtained during the 

investigation and the advice of the 

Section 301 Committee, the U.S. Trade 

Representative determined that the 

United Kingdom’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 6406 

(January 21, 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 the United Kingdom to be drawn 

from a list of 69 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 on May 3 and May 6, 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- 

0007 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 


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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 

products of the United Kingdom 

specified in Annex A to this notice. 

Annex A contains a list of 67 tariff 

subheadings, with an estimated trade 

value for calendar year 2019 of 

approximately $887 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 the United 

Kingdom’s DST and the amount of taxes 

assessed by the United Kingdom on U.S. 

companies. Estimates indicate that the 

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

company groups to the United Kingdom 

will be up to approximately $325 

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 the United 

Kingdom and the estimates of the 

amount of taxes to be assessed by the 

United Kingdom. 

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 an 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 9903.90.07 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 the 

United Kingdom, 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 28(a) and 28(b) to subchapter III 

of chapter 99 in numerical sequence: 

‘‘28 (a) For the purposes of heading 

9903.90.07, products of the United 

Kingdom, as specified in this note, shall 

be subject to additional duties as 

provided herein. All products of the 

United Kingdom that are classified in 

the subheadings enumerated in this note 

are subject to the additional duties 

imposed by heading 9903.90.07. The 

duties imposed by heading 9903.90.07 

shall be in addition to the general duty 

rates provided for in the applicable 

provisions of the tariff schedule. 

Products of the United Kingdom 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 

9903.90.07, 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 9903.90.07 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 the United Kingdom 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 the United Kingdom that 

are provided for in heading 9903.90.07 

and classified in one of the subheadings 

enumerated in note 28(b) to this 

subchapter shall continue to be subject 

to antidumping, countervailing or other 

duties (including duties imposed by 


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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 9903.90.07 shall apply to 

all products of the United Kingdom that 

are classified in the subheadings 

enumerated below: 

3213.90.00 

3303.00.10 

3303.00.20 

3303.00.30 

3304.10.00 

3304.20.00 

3304.30.00 

3304.91.00 

3304.99.10 

3304.99.50 

3305.10.00 

3305.20.00 

3305.30.00 

3305.90.00 

3306.90.00 

3307.10.10 

3307.10.20 

3307.30.10 

3307.30.50 

3307.49.00 

3307.90.00 

4201.00.60 

6104.43.20 

6201.12.20 

6201.92.45 

6202.12.20 

6202.13.40 

6202.92.90 

6204.43.40 

6204.44.40 

6204.49.10 

6205.20.20 

6215.10.00 

6403.59.30 

6403.59.90 

6403.91.30 

6403.99.60 

6404.20.40 

6903.90.00 

6907.23.90 

6907.30.90 

6910.90.00 

7113.11.50 

7113.19.29 

7113.19.50 

7116.20.50 

7117.19.90 

8415.82.01 

8418.40.00 

8418.50.00 

8418.69.01 

8532.24.00 

9001.10.00 

9401.71.00 

9403.10.00 

9403.20.00 

9403.40.90 

9403.60.80 

9403.89.60 

9503.00.00 

9504.50.00 

9504.90.40 

9504.90.60 

9504.90.90 

9508.10.00 

9508.90.00 

9603.29.80’’. 

2. by inserting the following new 

heading 9903.90.07 in numerical 

sequence, with the material in the new 

heading inserted in the columns of the 

HTSUS labeled ‘‘Heading/Subheading’’, 

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

Duty 1-General’’, respectively: 

Heading/subheading Article description 

Rates of duty 

1 

2 

General Special 

‘‘9903.90.07 ................... ‘‘Articles the product of the United Kingdom, as 

provided for in U.S. note 28(a) to this subchapter and as provided for in the subheadings 

enumerated in U.S. note 28(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 

3213.90.00 ................. Artists’, students’ or signboard painters’ colors, in tablets, tubes, jars, bottles, pans or in similar packings, not in sets. 

3303.00.10 ................. Floral or flower waters, not containing alcohol. 

3303.00.20 ................. Perfumes and toilet waters, other than floral or flower waters, not containing alcohol. 

3303.00.30 ................. Perfumes and toilet waters, containing alcohol. 

3304.10.00 ................. Lip make-up preparations. 

3304.20.00 ................. Eye make-up preparations. 

3304.30.00 ................. Manicure or pedicure preparations. 

3304.91.00 ................. Beauty or make-up powders, whether or not compressed. 

3304.99.10 ................. Petroleum jelly put up for retail sale. 

3304.99.50 ................. Beauty or make-up preparations & preparations for the care of the skin, excl. medicaments but incl. sunscreen or sun 

tan preparations, nesoi. 

3305.10.00 ................. Shampoos. 

3305.20.00 ................. Preparations for permanent waving or straightening the hair. 

3305.30.00 ................. Hair lacquers. 

3305.90.00 ................. Preparations for use on the hair, nesoi. 

3306.90.00 ................. Preparations for oral or dental hygiene, including denture fixative pastes and powders, excluding dentifrices and yarn 

used to clean between the teeth (dental floss). 

3307.10.10 ................. Pre-shave, shaving or after-shave preparations, not containing alcohol. 

3307.10.20 ................. Pre-shave, shaving or after-shave preparations, containing alcohol. 

3307.30.10 ................. Bath salts, whether or not perfumed. 


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HTSUS 

subheading Product description 

3307.30.50 ................. Bath preparations, other than bath salts. 

3307.49.00 ................. Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites, nesoi. 

3307.90.00 ................. Depilatories and other perfumery, cosmetic or toilet preparations. Nesoi. 

4201.00.60 ................. Saddlery and harnesses for animals nesoi, (incl. traces, leads, knee pads, muzzles, saddle cloths and bags and the 

like), of any material. 

6104.43.20 ................. Women’s or girls’ dresses, knitted or crocheted, of synthetic fibers, nesoi. 

6201.12.20 ................. Men’s or boys’ overcoats, carcoats, capes, & similar coats of cotton, not knit or crocheted, not containing 15% or more 

by wt of down, etc. 

6201.92.45 ................. Men’s or boys’ anoraks, windbreakers & sim articles nesoi, not knit/crochet, cotton, not cont. 15% or more by wt of 

down, etc, o/than rec perf outwear. 

6202.12.20 ................. Women’s or girls’ overcoats, carcoats, etc, not knitted or crocheted, of cotton, not containing 15% or more by weight of 

down, etc. 

6202.13.40 ................. Women’s or girls’ overcoats, carcoats, capes, cloaks and similar articles, not knitted or crocheted, of man-made fibers, 

nesoi. 

6202.92.90 ................. Women’s/girls’ anoraks, windbreakers & similar articles, nt knit/crochet, cotton, nt cont. 15% or more by wt of down, etc, 

o/than rec perf outwear. 

6204.43.40 ................. Women’s or girls’ dresses, not knitted or crocheted, of synthetic fibers, nesoi. 

6204.44.40 ................. Women’s or girls’ dresses, not knitted or crocheted, of artificial fibers, nesoi. 

6204.49.10 ................. Women’s or girls’ dresses, not knitted or crocheted, containing 70% or more by weight of silk or silk waste. 

6205.20.20 ................. Men’s or boys’ shirts, not knitted or crocheted, of cotton, nesoi. 

6215.10.00 ................. Ties, bow ties and cravats, not knitted or crocheted, of silk or silk waste. 

6403.59.30 ................. Footwear w/outer soles and uppers of leather, not covering the ankle, welt, nesoi. 

6403.59.90 ................. Footwear w/outer soles and uppers of leather, not cov. ankle, n/welt, for persons other than men, youths and boys. 

6403.91.30 ................. Footwear w/outer soles of rubber/plastics/composition leather & uppers of leather, covering the ankle, welt. 

6403.99.60 ................. Footwear w/outer soles of rubber/plastics/comp. leather & uppers of leather, n/cov. ankle, n/welt, for men, youths and 

boys, nesoi. 

6404.20.40 ................. Footwear w/outer soles of leather/comp. leath., n/o 50% by wt. rub./plast. or rub./plast./text. & 10%+ by wt. rub./plast., 

val. o/$2.50/pr. 

6903.90.00 ................. Refractory ceramic goods (o/than of siliceous fossil meals or earths), nesoi. 

6907.23.90 ................. Glazed ceramic flags and paving, hearth, or wall tiles, o/t subheading 6907.30 and 6907.40, of a H2O absorp coeff by 

wt >10%, nesoi. 

6907.30.90 ................. Glazed ceramic mosaic cubes nesoi, o/t subheading 6907.40. 

6910.90.00 ................. Ceramic (o/than porcelain or china) sinks, washbasins, baths, bidets, water closet bowls, urinals & siml. sanitary fixtures. 

7113.11.50 ................. Silver articles of jewelry and parts thereof, nesoi, valued over $18 per dozen pieces or parts. 

7113.19.29 ................. Gold necklaces and neck chains (o/than of rope or mixed links). 

7113.19.50 ................. Precious metal (o/than silver) articles of jewelry and parts thereo, whether or not plated or clad with precious 

metal,nesoi. 

7116.20.50 ................. Precious stone articles,nesoi. 

7117.19.90 ................. Imitation jewelry (o/than toy jewelry valued not over 8 cents per piece & rope, curb, cable, chain, and similar articles 

produced in continuous lengths), of base metal (wheth. or n/plated w/prec.metal), nesoi. 

8415.82.01 ................. Air conditioning machines incorporating a refrigerating unit, nesoi. 

8418.40.00 ................. Freezers of the upright type, not exceeding 900 liters capacity, electric or other. 

8418.50.00 ................. Refrigerating or freezing display counters, cabinets, showcases and similar refrigerating or freezing furniture. 

8418.69.01 ................. Refrigerating or freezing equipment nesoi. 

8532.24.00 ................. Ceramic dielectric fixed capacitors, multilayer. 

9001.10.00 ................. Optical fibers, optical fiber bundles and cables, other than those of heading 8544. 

9401.71.00 ................. Seats nesoi, w/metal frame (o/than of heading 9402), upholstered. 

9403.10.00 ................. Furniture (o/than 9401 or 9402) of metal nesoi, of a kind used in offices. 

9403.20.00 ................. Furniture (o/than 9401 or 9402) of metal nesoi, o/than of a kind used in offices. 

9403.40.90 ................. Furniture (o/than 9401 or 9402) of wood (o/than bentwood) nesoi, of a kind used in the kitchen & not designed for motor 

vehicl. Use. 

9403.60.80 ................. Furniture (o/than 9401 or 9402) of wood (o/than bentwood) nesoi. 

9403.89.60 ................. Furniture (o/than 9401 or 9402) of materials nesoi. 

9503.00.00 ................. Toys, including riding toys o/than bicycles, puzzles, reduced scale models. 

9504.50.00 ................. Video game consoles and machines, other than those of heading 9504.30. 

9504.90.40 ................. Game machines (o/than coin- or token-operated) and parts and accessories thereof. 

9504.90.60 ................. Chess, checkers, backgammon, darts and o/table and parlor games played on boards of a special design and parts 

thereof; poker chips and dice. 

9504.90.90 ................. Articles nesoi for arcade, table or parlor games & parts & access.; automatic bowling alley equipment & parts and accessories thereof. 

9508.10.00 ................. Traveling circuses and traveling menageries; parts and accessories thereof. 

9508.90.00 ................. Merry-go-rounds, boat-swings, shooting galleries and other fairground amusements; traveling theaters; parts and accessories thereof. 

9603.29.80 ................. Shaving brushes, hair brushes, nail brushes, eyelash and other toilet brushes for use on the person (o/than tooth brushes), valued o/40 cents each. 

[FR Doc. 2021–11862 Filed 6–4–21; 8:45 am] 

BILLING CODE 3290–F1–P 


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