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

7117.90.90

FR Doc. 202111861 Filed 6421; 8:45 am BILLING CODE 3290F1P

OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Docket Number USTR20210003

Notice of Action in the Section 301
Investigation of Indias Digital Services Tax Office of the United States Trade Representative USTR.
ACTION: Notice.
AGENCY:

On January 6, 2021, the U.S.
Trade Representative announced a determination that Indias Digital Services Tax DST is unreasonable or discriminatory and burdens or restricts U.S. commerce. This notice announces the U.S. Trade Representatives 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 3959439, 202 3950380, and 202 3859531, 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
3952851. For specific questions on customs classification or implementation of additional duties on products, contact traderemedy@cbp.gov.
SUPPLEMENTARY INFORMATION:

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SUMMARY:

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
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platform services, digital content sales, digital sales of a companys own goods, data-related services, software-as-aservice, and several other categories of digital services. Indias DST only applies to non-resident companies.
On June 2, 2020, the U.S. Trade Representative initiated an investigation of Indias DST pursuant to section 302b1A 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 Indias 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 USTR20200022.
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 Indias 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 Indias DST, and supports findings that Indias 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 Indias DST is unreasonable or discriminatory and burdens or restricts U.S. commerce, and therefore is actionable under sections 301b and 304a of the Trade Act. See 86 FR 2478
January 12, 2021.
On March 31, 2021, USTR issued a notice proposing that appropriate action
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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-20210003 and https comments.ustr.gov/s/
docket?docketNumber=USTR-20210008.
II. Determination of Action To Be Taken in the Investigation In accordance with section 301b of the Trade Act, the U.S. Trade Representative has determined that action is appropriate in this investigation. Section 301b 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 301c 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 301b, to obtain the elimination of that act, policy, or practice. Section 304a2B 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 301b 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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