[Federal Register Volume 60, Number 96 (Thursday, May 18, 1995)]
[Notices]
[Pages 26745-26746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12344]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-93]
Notice of Determination and Request for Public Comment Concerning
Proposed Determination of Action Pursuant to Section 301: Barriers to
Access to the Auto Parts Replacement Market in Japan
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of determination under section 304(a)(1)(A) of the Trade
Act of 1974, as amended (Trade Act) (19 U.S.C. 2414(a)(1)(A)); notice
of proposed determination of action to be taken under section
304(a)(1)(B) of the Trade Act and notice of public hearing and request
for public comment pursuant to section 304(b) of the Trade Act.
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SUMMARY: The United States Trade Representative (USTR) has determined
pursuant to section 304(a)(1)(A)(ii) of the Trade Act that certain
Acts, policies and practices of Japan that restrict or deny suppliers
of U.S. auto parts access to the auto parts replacement and accessories
market (``after-market'') in Japan are unreasonable and discriminatory
and burden or restrict U.S. commerce. The USTR is seeking public
comment and will hold a public hearing on June 8 and 9, 1995, regarding
the proposed determination pursuant to section 304(a)(1)(B) on the
appropriate action under section 301 being considered in response to
these acts, policies and practices.
DATES: Written comments on the determination are due by noon, Monday,
June 19, 1995. Requests to testify at the hearing must be submitted by
noon, Thursday, May 25, 1995. Written testimony is due by noon, Friday,
June 2, 1995, and written rebuttals are due by noon, Wednesday, June
21, 1995.
ADDRESSES: Office of the United States Trade Representative, 600 17th
Street NW., Washington, DC 20506.
FOR FURTHER INFORMATION CONTACT:
David Burns, Senior Advisor for Japan, (202) 395-5050, or James
Southwick, Assistant General Counsel, (202) 395-7203. Questions about
the public hearing, written testimony and written comments should be
directed to Sybia Harrison, Staff Assistant to Section 301 Committee,
(202) 395-3432.
SUPPLEMENTARY INFORMATION: On October 1, 1994, the USTR initiated an
investigation pursuant to section 302(b) of the Trade Act to determine
whether specific barriers to access to the after-market for auto parts
in Japan are unreasonable or discriminatory and burden or restrict U.S.
commerce. By Federal Register notice dated October 13, 1994 (59 FR
52034), the USTR requested public comment on the issues raised in the
investigation. The comment period was subsequently extended by a
Federal Register notice dated November 10, 1994 (59 FR 56099).
Officials of the Office of the USTR and other United States
agencies have conducted extensive consultations with Japanese
government officials concerning these market access barriers, but
negotiations have failed to resolve the issues under investigation.
Consequently, on May 10, 1995, the USTR pursuant to section
304(a)(1)(A)(ii) of the Trade Act determined that certain acts,
policies and practices of Japan that restrict or deny suppliers of U.S.
auto parts access to the auto parts replacement and accessories market
(``after-market'') in Japan are unreasonable and discriminatory and
burden or restrict U.S. commerce.
Reasons for Determination
The Japanese market for replacement auto parts is restricted by a
complex system that is not reasonable or justifiable. This system
channels most repair work to government-certified garages that use very
few foreign parts, and the system restricts the development of other
garages more likely to carry and use foreign parts. In addition, even
minor additions of accessories to motor vehicles require a full vehicle
inspection and tax payment, which severely limits opportunities for
U.S. automotive accessories suppliers.
The United States pressed Japan for broad reform in the
aftermarket. The U.S. proposals did not ask for reduction of safety or
environmental standards, but for measures that would allow for
substantially more repair work to be performed outside the certified
garages, and therefore would open up opportunities for foreign
suppliers. The Government of Japan was unwilling to make changes to key
elements of the system which restricts opportunities for U.S. and other
foreign parts suppliers.
Proposed Determination on Appropriate Action
If the USTR makes an affirmative determination pursuant to section
304(a)(1)(A)(ii) of the Trade Act, pursuant to section 304(a)(1)(B) the
USTR also must determine what action, if any, by the United States is
appropriate. If the USTR determines that action is appropriate, section
301(b) of the Trade Act directs the USTR to take all appropriate and
feasible action to obtain the elimination of the unreasonable or
discriminatory act, policy or practice.
Therefore, the USTR proposes to take the following action, pursuant
to the authority provided by section 301(c)(1)(B) of the Trade Act:
To impose prohibitive (100 percent ad valorem) duties upon luxury-
type motor vehicles from Japan. The increased tariffs will apply to the
following motor cars and other motor vehicles principally designed for
the transport of persons provided for in heading 8703 of the Harmonized
Tariff Schedule of the United States (HTS):
(1) Motor vehicles having 4 doors, a wheelbase more than 260 cm
(102.4 inches) but not more than 263 cm (103.6 inches), a curb weight
more than 1,495 kg (3,295.9 pounds), a height not more than 138 cm
(54.3 inches), and a spark-ignition internal combustion reciprocating
piston engine with 6 or more cylinders, having a total cylinder
capacity exceeding 2,900 cc or a rotary piston engine (provided for in
HTS subheadings 8703.23, 8703.24 or 8703.90); and
(2) Motor vehicles having a wheelbase exceeding 266 cm (104.7
inches), a curb weight more than 1,365 kg (3009.3 pounds), a height not
more than 145 cm (57 inches), and either a spark-ignition
[[Page 26746]] internal combustion reciprocating piston engine having a
total cylinder capacity exceeding 2,900 cc or a rotary piston engine
(provided for in HTS subheadings 8703.23, 8703.24 or 8703.90).
The USTR has asked the Customs Service to withhold liquidation of
the entries of the goods identified above which are entered, or
withdrawn from warehouse for consumption, on or after May 20, 1995. If
the proposed duty increases enter into effect, the USTR intends to make
these increases effective as of May 20, 1995.
In making this determination, the USTR will consider public
comments submitted in accordance with the requirements set forth below.
Public Comment on Proposed Determination; Hearing Participation
In accordance with section 304(b) of the Trade Act, the USTR
invites all interested persons to provide written comments on the
proposed determination. Comments may address: (1) The appropriateness
of subjecting the motor vehicles described above to an increase in
duties; (2) the levels at which duties should be set; and (3) the
degree to which an increase in duties might have an adverse effect on
U.S. consumers. Written comments are due by noon, Monday, June 19,
1995.
The USTR also will consider the written, oral, and rebuttal
comments submitted in the context of public hearings held pursuant to
section 304(b) of the Trade Act and in accordance with 15 CFR 2006.7
through 2006.9. The hearings will commence at 10 a.m. on Thursday, June
8, 1995, and continue on Friday, June 9, 1995, if necessary. The
hearings will be held in Room 100 at the U.S. International Trade
Commission, 500 E Street, SW., Washington, DC 20436.
Request to Testify: Interested persons wishing to testify orally at
the hearings must provide a written request to do so by noon, Thursday,
May 25, 1995, to Sybia Harrison, Staff Assistant to the Section 301
Committee, Office of the U.S. Trade Representative, 600 17th Street
NW., Washington, DC 20506. Requests to testify must include the
following information: (1) Name, address, telephone number, and firm or
affiliation of the person wishing to testify; and (2) a brief summary
of the comments to be presented. Requests to testify must conform to
the requirements of 15 CFR 2006.8(a). After the Chairman of the Section
301 Committee considers the request to present oral testimony, Ms.
Harrison will notify the applicant of the time of his or her testimony.
Remarks at the hearing will be limited to 5 minutes.
Written Testimony and Rebuttal Briefs: In addition, persons
presenting oral testimony must submit their complete written testimony
by noon, Friday, June 2, 1995. In order to assure each party an
opportunity to contest the information provided by other parties, USTR
will entertain rebuttal briefs filed by any party by noon, Wednesday
June 21, 1995. In accordance with 15 CFR 2006.8(c), rebuttal briefs
should be strictly limited to demonstrating errors of fact or analysis
not pointed out in the briefs or hearing and should be as concise as
possible.
Requirements for Submissions: Written comments on the proposed
determination, written testimony, and rebuttal briefs must be filed in
accordance with thr requirements set forth in 15 CFR 2006.8(b).
Comments must state clearly the position taken and describe with
particularity the supporting rationale, be in English, and be provided
in twenty copies to: Chairman, Section 301 Committee, Attn: Auto Parts
Investigation, Room 223, USTR, 600 17th St NW., Washington, DC 20506.
Written comments, testimony, and briefs will be placed in a file
(Docket 301-93) open to public inspection pursuant to 15 CFR 2006.13,
except confidential business information exempt from public inspection
in accordance with 15 CFR 2006.15. Persons wishing to submit
confidential business information must certify in writing that such
information is confidential in accordance with 15 CFR 2006.15(b), and
such information must be clearly marked ``Business Confidential'' in a
contrasting color ink at the top of each page on each of the twenty
copies and must be accompanied by a nonconfidential summary of the
confidential information. The nonconfidential summary will be placed in
the Docket open to public inspection. An appointment to review the
docket may be made by calling Brenda Webb (202) 395-6186. The USTR
Reading room is open to the public from 10 a.m. to 12 noon and 1 p.m.
to 4 p.m., Monday through Friday, and is located in: Room 101, Office
of the United States Trade Representative, 600 17th Street NW.,
Washington, DC 20506.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 95-12344 Filed 5-16-95; 8:45 am]
BILLING CODE 3190-01-M