On May 3, 2022, The Office of the U.S. Trade Representative commenced the statutory process required leading up to the four-year anniversaries of the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.
The first step in the process is to notify representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. If a request for continuation is received, USTR will conduct a review of the tariff actions.
Background: USTR is providing notice to representatives of domestic industries that benefit from the tariff actions through letters to interested parties that previously submitted comments in support of the tariff actions and through the issuance of a Federal Register notice. Requests for continuation must be submitted prior to the four-year anniversary of the action, which is July 6, 2022, for the first action in the investigation. If one or more requests for continuation are submitted, USTR will publish an additional notice after July 6 announcing the continuation of the tariff action and will proceed with a review of the tariffs. The review will include an opportunity for all interested persons to provide comments.
This action relates to List 1 and List 2.
Additional information is available through the Federal Register notice, which can be accessed HERE.
Section 301 actions terminate automatically after four years, unless the USTR receives a request for continuation and conducts a review of the case. In addition, in some cases, the USTR may reinstate a previously terminated Section 301 action.
Here is the relevant regulation--
"19 U.S. Code § 2417 - Modification and termination of actions
"(c)Review of necessity
"(A)a particular action has been taken under section 2411 of this title during any 4-year period, and
"(B)neither the petitioner nor any representative of the domestic industry which benefits from such action has submitted to the Trade Representative during the last 60 days of such 4-year period a written request for the continuation of such action, such action shall terminate at the close of such 4-year period.
"(2)The Trade Representative shall notify by mail the petitioner and representatives of the domestic industry described in paragraph (1)(B) of any termination of action by reason of paragraph (1) at least 60 days before the date of such termination.
"(3)If a request is submitted to the Trade Representative under paragraph (1)(B) to continue taking a particular action under section 2411 of this title, or if a request is submitted to the Trade Representative under section 2416(c)(2) of this title to reinstate action, the Trade Representative shall conduct a review of—
"(A)the effectiveness in achieving the objectives of section 2411 of this title of—
"(i)such action, and
"(ii)other actions that could be taken (including actions against other products or services), and
"(B)the effects of such actions on the United States economy, including consumers."