[Federal Register Volume 61, Number 117 (Monday, June 17, 1996)]
[Notices]
[Pages 30646-30647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15306]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-106]


Initiation of Section 302 Investigation and Request for Public 
Comment: Practices of the Government of Turkey Regarding the Imposition 
of a Discriminatory Tax on Box Office Revenues

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of initiation of investigation; request for written 
comments.

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SUMMARY: The United States Trade Representative (USTR) has initiated an 
investigation under section 302(b)(1) of the Trade Act of 1974, as 
amended (the Trade Act) (19 U.S.C. 2412(b)(1)), with respect to certain 
acts, policies and practices of the Government of Turkey that may 
result in the discriminatory treatment of U.S. films in Turkey. The 
United States alleges that these acts, policies and practices are 
inconsistent with the General Agreement on Tariffs and Trade 1994 (GATT 
1994), administered by the World Trade Organization (WTO). USTR invites 
written comments from the public on the matters being investigated.

DATES: This investigation was initiated on June 12, 1996. Written 
comments from the public are due on or before noon on Monday, July 22, 
1996.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT:
Joseph Papovich, Deputy Assistant USTR for Intellectual Property, (202) 
395-6864, or Thomas Robertson, Associate General Counsel, (202) 395-
6800.

SUPPLEMENTARY INFORMATION: Section 302(b)(1) of the Trade Act 
authorizes the USTR to initiate an investigation under chapter 1 of 
Title III of the Trade Act (commonly referred to as ``section 301'') 
with respect to any matter in order to determine whether the matter is 
actionable under section 301. Matters actionable under section 301 
include, inter alia, the denial of rights of the United States under a 
trade agreement, or acts, policies, and practices of a foreign country 
that violate or are inconsistent with the provisions of, or otherwise 
deny benefits to the United States under, any trade agreement.
    On June 12, 1996, having consulted with the appropriate private 
sector advisory committees, the USTR determined that an investigation 
should be initiated to determine whether certain laws and regulations 
of Turkey affecting the taxation of box office revenues generated from 
the showing of foreign-origin films are actionable under section 
301(a). Turkey's Law on Municipal Revenues (Law No. 2464) imposes a 25% 
municipality tax on box office revenues generated from the showing of 
foreign films, but not the revenue generated from the showing of 
domestic films. Current information is that the revenues are allocated 
to municipal coffers for general use.

[[Page 30647]]

Article III of the GATT 1994 provides, among other things, that the 
products of the territory of one WTO member imported into the territory 
of another WTO member shall not be subject to internal taxes or other 
charges of any kind in excess of those applied, directly or indirectly, 
to like domestic products. WTO members are also prohibited from 
applying internal taxes or internal charges to imported or domestic 
products so as to afford protection to domestic production. Turkey's 
imposition of a tax on box office revenues that is applied only to 
revenues generated by foreign films, and not to revenues generated by 
domestic films, would appear to be inconsistent with the obligations 
set forth in Article III of the GATT 1994.

Investigation and Consultations

    As required in section 303(a) of the Trade Act, the USTR has 
requested consultations with the Government of Turkey regarding the 
issues under investigation. The request was made pursuant to Article 4 
of the WTO Understanding on Rules and Procedures Governing the 
Settlement of Disputes (DSU) and Article XXII of the GATT 1994. If the 
consultations do not result in a satisfactory resolution of the matter, 
the USTR will request the establishment of a panel pursuant to Article 
6 of the DSU.
    Under section 304 of the Trade Act, the USTR must determine within 
18 months after the date on which this investigation was initiated, or 
within 30 days after the conclusion of WTO dispute settlement 
procedures, whichever is earlier, whether any act, policy, or practice 
or denial of trade agreement rights described in section 301 of the 
Trade Act exists and, if that determination is affirmative, the USTR 
must determine what action, if any, to take under section 301 of the 
Trade Act.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the acts, policies and practices of Turkey which are the 
subject of this investigation, the amount of burden or restriction on 
U.S. commerce caused by these acts, policies and practices, and the 
determinations required under section 304 of the Trade Act. Comments 
must be filed in accordance with the requirements set forth in 15 CFR 
2006.8(b) (55 FR 20593) and must be filed on or before noon on Monday, 
July 22, 1996. Comments must be in English and provided in twenty 
copies to: Sybia Harrison, Staff Assistant to the Section 301 
Committee, Room 223, Office of the U.S. Trade Representative, 600 17th 
Street, NW, Washington, D.C. 20508.
    Comment will be placed in a file (Docket 301-106) 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. Confidential business information submitted in accordance with 
15 CFR 2006.15 must be clearly marked ``BUSINESS CONFIDENTIAL'' in a 
contrasting color ink at the top of each page on each of 20 copies, and 
must be accompanied by a nonconfidential summary of the confidential 
information. The nonconfidential summary shall be placed in the file 
that is open to public inspection. An appointment to review the docket 
(Docket No. 301-106) may be made by calling Brenda Webb (202) 395-6186. 
The USTR Reading Room is open to the public from 10:00 a.m. to 12 noon 
and 1:00 p.m. to 4:00 p.m., Monday through Friday, and is located in 
Room 101.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 96-15306 Filed 6-14-96; 8:45 am]
BILLING CODE 3190-01-M