Federal Register/Vol. 85, No. 35/Friday, February 21, 2020/Notices

10204 Federal Register / Vol. 85, No. 35 / Friday, February 21, 2020 / Notices

LDRR has certified that the By the Board, Scott M. Zimmerman, Acting dispute against the EU and certain EU transaction does not involve any Director, Office of Proceedings. member States addressed to subsidies provision or agreement that would limit Tammy Lowery, on large civil aircraft. See 84 FR 15028 future interchange with a third-party Clearance Clerk. (April 12 notice). The April 12 notice connecting carrier. LDRR states that its [FR Doc. 2020–03494 Filed 2–20–20; 8:45 am] contains background information on the projected annual revenues as a result of BILLING CODE 4915–01–P investigation and the dispute settlement this transaction will not result in proceedings, as well as the website where the WTO reports can be found: LDRR’s becoming a Class II or Class I _ rail carrier. Additionally, LDRR certifies OFFICE OF THE UNITED STATES https://www.wto.org/english/tratop e/ dispu_e/cases_e/ds316_e.htm. that its total revenues exceed $5 million. TRADE REPRESENTATIVE The April 12 notice solicited Pursuant to 49 CFR 1150.42(e), if a [Docket No. USTR–2019–0003] comments on a proposed determination carrier’s projected annual revenues will that, inter alia, the EU and certain exceed $5 million, it must, at least 60 Notice of Modification of Section 301 member States have denied U.S. rights days before the exemption becomes Action: Enforcement of U.S. WTO under the WTO Agreement, and in effective, post a notice of its intent to Rights in Large Civil Aircraft Dispute particular, under Articles 5 and 6.3 of undertake the proposed transaction at AGENCY: Office of the United States the Agreement on Subsidies and the workplace of the employees on the Trade Representative. Countervailing Measures (SCM affected lines, serve a copy of the notice Agreement) and the General Agreement ACTION: Notice of modification of action. on the national offices of the labor on Tariffs and Trade 1994 (GATT 1994), unions with employees on the affected SUMMARY: Effective October 18, 2019, and have failed to comply with the lines, and certify to the Board that it has the U.S. Trade Representative imposed WTO Dispute Settlement Body (DSB) done so. However, LDRR’s verified additional duties on certain products of recommendations to bring the WTO- notice includes a request for waiver of the EU and certain EU member States in inconsistent subsidies into compliance the 60-day advance labor notice this Section 301 investigation to enforce with WTO obligations. The April 12 requirements. LDRR’s waiver request U.S. WTO rights in the Large Civil notice invited public comment on a will be addressed in a separate decision. Aircraft dispute. On December 12, 2019, proposed action in the form of an additional ad valorem duty of up to 100 The verified notice states that LDRR the U.S. Trade Representative announced a review of the Section 301 percent on products of EU member and UP entered into the Consolidated action and requested public comments. States to be drawn from a list of 317 Lease agreement on January 1, 2020. Based on this review, the U.S. Trade tariff subheadings and 9 statistical LDRR states that it expects to Representative has determined to revise reporting numbers of the Harmonized consummate the transaction on the the action being taken by increasing the Tariff Schedule of the United States effective date of this exemption. The rate of additional duties on certain large (HTSUS) included in the annex to that Board will establish the effective date in civil aircraft, and by modifying the list notice. its separate decision on the waiver of other products of certain current and In response to public comments request. former EU member States subject to received during the comment period, and upon further analysis, USTR If the verified notice contains false or additional 25 percent duties. published a notice inviting public misleading information, the exemption DATES: The modifications to the Section comment on a second list of products is void ab initio. Petitions to revoke the 301 action set out in Annex 1, also being considered for an additional exemption under 49 U.S.C. 10502(d) subparagraph C, are applicable with ad valorem duty of up to 100 percent. may be filed at any time. The filing of respect to products that are entered for See 84 FR 32248 (July 5, 2019) (July 5 a petition to revoke will not consumption, or withdrawn from notice). The public versions of automatically stay the effectiveness of warehouse for consumption, on or after submissions received in response to the the exemption. Petitions for stay must 12:01 a.m. eastern standard time on April 12 and July 5 notices, as well as be filed no later than February 28, 2020. March 18, 2020. The modifications set transcripts of both hearings, are out in Annex 1, subparagraphs A and B, available on www.regulations.gov under All pleadings, referring to Docket No. are applicable with respect to products FD 36379, must be filed with the docket number USTR–2019–0003. that are entered for consumption, or On October 2, 2019, the WTO Surface Transportation Board either via withdrawn from warehouse for e-filing or in writing addressed to 395 E Arbitrator issued a report that consumption, on or after 12:01 a.m. concluded that the appropriate level of Street SW, Washington, DC 20423–0001. eastern standard time on March 5, 2020. countermeasures in response to the In addition, a copy of each pleading FOR FURTHER INFORMATION CONTACT: For WTO-inconsistent launch aid provided must be served on LDRR’s questions about the determinations in by the EU or certain member States to representative, Eric M. Hocky, Clark this investigation, contact Assistant their large civil aircraft domestic Hill, PLC, Two Commerce Square, 2001 General Counsel Megan Grimball, (202) industry is approximately $7.5 billion Market St., Suite 2620, Philadelphia, PA 395–5725, or Director for Europe annually. Subsequently, on October 9, 19103. Michael Rogers, at (202) 395–3320. For 2019, the U.S. Trade Representative According to LDRR, this action is questions on customs classification of announced a determination that the EU categorically excluded from products identified in the annexes, and certain member States have denied environmental review under 49 CFR contact [email protected]. U.S. rights under the WTO Agreement 1105.6(c) and from historic preservation SUPPLEMENTARY INFORMATION: and have failed to implement DSB recommendations concerning certain reporting requirements under 49 CFR A. Proceedings in the Investigation 1105.8(b). subsidies to the EU large civil aircraft On April 12, 2019, the U.S. Trade industry. See 84 FR 54245 (October 9, Board decisions and notices are Representative announced the initiation 2019) (October 9 notice). The U.S. Trade available at www.stb.gov. of an investigation to enforce U.S. rights Representative determined to take Decided: February 18, 2020. in the World Trade Organization (WTO) action in the form of additional duties

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on products of certain member States of into account the public comments and March 18, 2020, only may be admitted the EU, at levels of 10 or 25 percent ad testimony in response to the April 12, as ‘privileged foreign status’ as defined valorem, as specified in annex A of the July 5, and December 12 notices, the in 19 CFR 146.41. Such products will be October 9 notice, effective October 18, advice of advisory committees, and the subject upon entry for consumption to 2019. The Trade Representative made advice of the Section 301 committee. In any ad valorem rates of duty or technical adjustments and corrected accordance with section 306(b)(2)(F) of quantitative limitations related to the certain errors effective October 18, 2019. the Trade Act (19 U.S.C. 2416(b)(2)(F)), classification under the applicable See 84 FR55998 (October 18, 2019). the revised action includes reciprocal HTSUS subheading. On December 12, 2019, the U.S. Trade goods of the affected industry. The Any product listed in Annex 1, Representative announced a review of annual trade value of the list of tariff subparagraphs A and B to this notice, the Section 301 action and invited subheadings subject to additional duties except any product that is eligible for public comments. See 84 FR 67992 under the revised action remains at admission under ‘domestic status’ as (December 12, 2019) (December 12 approximately $7.5 billion, which is defined in 19 CFR 146.43, which is notice). The December 12 notice consistent with the WTO Arbitrator’s subject to the additional duty imposed specifically requested comments on finding on the appropriate level of by this determination, and is admitted whether products of specific EU countermeasures. into a U.S. foreign trade zone on or after member States should be removed from As specified in the annexes to this 12:01 a.m. eastern daylight time on the list of products subject to additional notice, the U.S. Trade Representative March 5, 2020, only may be admitted as duties or should remain on the list; if a has determined to increase the duties on ‘privileged foreign status’ as defined in product remains on the list, whether the certain large civil aircraft from 10 to 19 CFR 146.41. Such products will be current rate of additional duty should be percent to 15 percent, and to change the subject upon entry for consumption to increased to as high as 100 percent; and composition of the list of products any ad valorem rates of duty or whether additional EU products should subject to additional duties of 25 quantitative limitations related to the be added to the list. USTR received percent. As of this time, the Trade classification under the applicable nearly 26,000 comments in response to Representative has decided not to HTSUS subheading. the December 12, 2019 notice. increase the rate of additional duties The U.S. Trade Representative will above the additional 25 percent B. Revision of Action continue to consider the action taken in currently being applied to non-aircraft this investigation. Section 306(b)(2)(B)(i) of the 1974 products. The U.S. Trade Representative Trade Act, as amended, provides in has also determined that going forward, Joseph Barloon, pertinent part that the ‘‘Trade the action may be revised as appropriate General Counsel, Office of the U.S. Trade Representative shall periodically revise immediately upon any EU imposition of Representative. the [retaliation] list or action to affect additional duties on U.S. products in other goods of the country or countries connection with the Large Civil Aircraft Annex 1 that have failed to implement the [WTO dispute or with the EU’s WTO challenge A. Effective with respect to goods Dispute Settlement Body] to the alleged subsidization of U.S. large entered for consumption, or withdrawn recommendation.’’ Section civil aircraft. from warehouse for consumption, on or 306(b)(2)(B)(ii) provides that no revision Annex 1 to this Notice identifies the after 12:01 a.m. eastern standard time is required under section 306(b)(2)(B) if products affected by the revised action, March 5, 2020, U.S. note 21 to the U.S. Trade Representative the rate of duty to be assessed, and the subchapter III of chapter 99 of the determines that implementation of the current or former EU member States Harmonized Tariff Schedule of the DSB’s recommendations is imminent, or affected. Annex 2, section 1, contains United States is modified as provided the U.S. Trade Representative agrees unofficial descriptions of the revisions herein: with the affected industry concerned made by this Notice. Section 2 of Annex 1. U.S. note 21(a) to such subchapter that revision of the list is not necessary. 2 contains the unofficial descriptions of is modified by deleting ‘‘9903.89.50’’ The U.S. Trade Representative has not products covered by the October 18 each place that it appears and inserting determined that the circumstances set action, as revised by this Notice. ‘‘9903.89.52’’ in lieu thereof. forth in section 306(b)(2)(B)(ii) currently In order to implement this 2. U.S. note 21(g) to such subchapter apply, and accordingly has determined determination, effective March 18, 2020, is modified by deleting ‘‘2009.89.40’’. to revise the action being taken in the subchapter III of chapter 99 of the investigation. The United States remains HTSUS is modified by subparagraph C 3. U.S. note 21 to such subchapter is open to a negotiated settlement that of Annex 1 to this notice. Effective modified by inserting in alphabetical addresses current and future subsidies March 5, 2020, subchapter III of chapter order: to Airbus provided by the EU and 99 of the HTSUS is modified by ‘‘(q) Subheading 9903.89.52 and certain current and former member subparagraphs A and B of Annex 1 to superior text thereto shall apply to all States. this notice. The additional duties products of France or Germany that are Section 306(b)(2)(D) provides in provided for in the HTSUS subheadings classified in subheading 8214.90.60.’’ pertinent part that in revising any list or established by Annex 1 apply in B. Effective with respect to goods action, the U.S. Trade Representative addition to all other applicable duties, entered for consumption, or withdrawn ‘‘shall act in a manner that is most likely fees, exactions, and charges. from warehouse for consumption, on or to result in the country or countries Any product listed in Annex 1, after 12:01 a.m. eastern standard time implementing the recommendations subparagraph C, to this notice, except March 5, 2020, the following new tariff adopted in the dispute settlement any product that is eligible for provisions are inserted in numerical proceeding or in achieving mutually admission under ‘domestic status’ as sequence in subchapter III of chapter 99, satisfactory solution to the issue that defined in 19 CFR 146.43, which is with the material in the following new gave rise to the dispute settlement subject to the additional duty imposed tariff provisions inserted in the columns proceeding.’’ by this determination, and is admitted entitled ‘‘Heading/Subheading’’, The modifications to the Section 301 into a U.S. foreign trade zone on or after ‘‘Article Description’’, and ‘‘Rates of action announced in this Notice take 12:01 a.m. eastern daylight time on Duty 1—General’’, respectively:

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Rates of Duty Heading/ Article description 1 subheading 2 General Special

9903.89.52 ...... ‘‘Articles the product of France or Germany: The duty provided in Provided for in subheadings enumerated in the applicable sub- U.S. note 21(q) to this subchapter. heading + 25%’’.

C. Effective with respect to goods scope of the action, except as specified Part 1—Products of France, Germany, entered for consumption, or withdrawn below. In all cases, the formal language Spain, or the United Kingdom described from warehouse for consumption, on or in Annex 1 governs the tariff treatment below are subject to additional import after 12:01 a.m. eastern daylight time of products covered by the action. duties of 10 percent ad valorem. March 18, 2020, the Rates of Duty 1— Section 1 of this Annex describes the Effective March 18, 2020, products of General column of subheading changes to the action that were France, Germany, Spain or the United 9903.89.05 is modified by deleting undertaken as a result of Annex 1, as Kingdom described below are subject to ‘‘10%’’ and inserting ‘‘15%’’ in lieu reflected in the informal list presented additional duties of 15 percent ad thereof. in Section 2 of this Annex. valorem: Any questions regarding the scope of Annex 2 particular HTS subheadings should be Note: For purposes of the 8-digit Section 1—Descriptive List of Changes referred to U.S. Customs and Border subheading of HTS listed below, the From Annex 1 Protection. In the product descriptions, product description defines and limits the abbreviation ‘‘nesoi’’ means ‘‘not the scope of the proposed action. This Note: The product descriptions that elsewhere specified or included’’. product is defined by U.S. note 21(b) are contained this Annex are provided (a) The additional duties on products and covers only items in 9903.89.05. for informational purposes only, and are in Part 1 below shall be increased to 15 not intended to delimit in any way the percent, effective March 18, 2020.