Intellectual property rights protection, countries denying; policies and practices: Honduras,

[Federal Register: April 3, 1998 (Volume 63, Number 64)]

[Notices]

[Page 16607-16608]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr03ap98-136]

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-116]

Determination of Action Under Section 301(b): Honduran Protection of Intellectual Property Rights

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of determinations and action.

SUMMARY: The United States Trade Representative (``USTR''), pursuant to sections 304(a)(1) (A) and 301 (b) of the Trade Act of 1974 (the ``Trade Act''), has determined that based on the failure of the Government of Honduras to provide adequate and effective protection of intellectual property rights, certain acts, policies, and practices of Honduras with respect to the protection of intellectual property rights are unreasonable and burden or restrict United States commerce. Pursuant to sections 304(a)(1)(B), 301(b) and 301(c) of the Trade Act, the USTR has determined that the appropriate action to obtain the elimination of such acts, policies, and practices is to suspend the preferential treatment accorded under the Generalized System of Preferences (GSP) and the Caribbean Basin Initiative (CBI) programs to those products of

[[Page 16608]]

Honduras listed in Annex I of this notice.

EFFECTIVE DATES: The USTR's determinations as to actionability and the specific action to be taken was made on March 16, 1998. The suspension of GSP and CBI benefits with respect to the products of Honduras listed in Annex I of this notice will be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after April 20, 1998.

FOR FURTHER INFORMATION CONTACT: Sue Cronin, Office of Western Hemisphere, (202) 296-5190, David Morrissy, Office of Trade and Development, Office of the United States Trade Representative, (202) 395-6971, or William Busis, Office of the General Counsel, Office of the United States Trade Representative, (202) 395-3150.

SUPPLEMENTARY INFORMATION: On October 31, 1997, the USTR initiated an investigation under section 302(b) of the Trade Act with regard to acts, policies, and practices of the Government of Honduras with respect to the protection of intellectual property rights, including the failure to provide adequate and effective copyright protection and enforcement of rights of copyright owners, resulting in, for example, the wide-spread unauthorized broadcasting in Honduras of pirated videos and the rebroadcasting of U.S. satellite-carried programming. The USTR proposed to determine that these acts, policies and practices are actionable under section 301(b) and that the appropriate response would be a partial suspension of tariff preference benefits accorded to Honduras under the GSP and CBI programs. See 62 FR 60299 (November 7, 1997). The notice set forth a list of articles of Honduras which could be subject to the suspension of tariff preference benefits and invited interested persons to submit written comments by December 10, 1997 and to participate in a public hearing concerning the proposed determinations and action. The scheduled public hearing was subsequently canceled due to a lack of public response. See 62 FR 64039 (December 3, 1997).

In response to the November 7, 1997, Federal Register notice, the USTR received comments regarding the failure of Honduras to provide adequate and effective copyright protection and enforcement of rights of copyright owners, the appropriateness of the proposed determinations and action, and the appropriateness of suspending tariff preference benefits with respect to particular products listed in the annex of the November 7 notice.

Determinations

The United States has consulted repeatedly with the Government of Honduras regarding the matters under investigation. While Honduras has established a television regulatory authority and has initiated criminal actions against two stations engaged in broadcast piracy, blatant broadcast piracy continues and the failure of Honduras to protect intellectual property rights has harmed U.S. copyright-based industries. Accordingly, on the basis of the investigation initiated under Section 302 of the Trade Act, the comments received, and the consultations, the USTR has determined pursuant to sections 301(b)(1) and 304(a)(1)(A)(ii) of the Trade Act that the Government of Honduras fails to provide adequate and effective protection of intellectual property rights and the acts, policies or practices of Honduras under investigation are unreasonable and burden or restrict U.S. commerce.

Because the determination of the USTR under Section 304(a)(1)(A) of the Trade Act is affirmative, the USTR must determine the appropriate and feasible action to take under Section 301(b) and (c). In a case in which the act, policy, or practice under investigation also fails to meet the eligibility requirements for receiving preferential treatment under the GSP program or CBI program, Section 301(c)(1)(C) of the Trade Act provides that the USTR may withdraw, limit or suspend such preferential treatment. Both the GSP and CBI programs include eligibility requirements concerning the extent to which the foreign country provides adequate and effective protection of intellectual property rights.

The USTR has determined pursuant to sections 304(a)(1)(B), 301(b)(2), and 301(c)(1)(C) of the Trade Act that the appropriate and feasible action in this case is to suspend the duty-free GSP and CBI treatment accorded to the products of Honduras covered in the tariff subheadings of the Harmonized Tariff Schedule of the United States (HTS) listed in Annex I to this notice. Those products are cucumbers provided for in HTS subheadings 0707.00.20 and 0707.00.40, watermelons provided for in HTS subheading 0807.11.30, and cigars, cheroots, and cigarillos provided for in HTS subheadings 2402.10.30 and 2402.10.60. Such products of Honduras will be subject to ordinary, most favored nation rates of duty effective April 20, 1998. Irving A. Williamson, Chairman, Section 301 Committee.

Annex I

The Harmonized Tariff Schedule of the United States (``HTS'') is modified as set forth below with respect to articles entered, or withdrawn from warehouse for consumption, on or after the effective dates specified for the enumerated actions:

1. With respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after April 20, 1998.

   (a). General note 4(d) to the HTS is modified by adding, in numerical sequence, the following subheadings and the country set out opposite them:

   0707.00.20 Honduras 0707.00.40 Honduras 0807.11.30 Honduras

   (b). For the following subheadings, the Rates of Duty 1-Special subcolumn is modified by deleting the symbol ``A'' and inserting an ``A*'' in lieu thereof:

   0707.00.20 0707.00.40 0807.11.30

2. With respect to articles entered, or withdrawn from warehouse for consumption, on or after April 20, 1998.

   (a). General note 7 to the HTS is modified:

   (i). by deleting subdivision 7(d)(iv) and inserting the following new subdivision in lieu thereof:

   ``(iv) Articles the product of Honduras classifiable in the following subheadings:

   0707.00.20 0707.00.40 0807.11.30 2402.10.30 2402.10.60''

   (ii). by adding a new subdivision 7(g) as follows:

   ``(g) any agricultural product of chapters 2 through 52, inclusive, that is subject to a tariff-rate quota, if entered in a quantity in excess of the in-quota quantity for such product.''

   (b). For the following subheadings, the Rates of Duty 1-Special subcolumn is modified by deleting the symbol ``E'' and inserting an ``E*'' in lieu thereof:

   0707.00.20 0707.00.40 0807.11.30 2402.10.30 2402.10.60

   [FR Doc. 98-8773Filed4-2-98; 8:45 am]

   BILLING CODE 3190-01-M