[Federal Register Volume 61, Number 202 (Thursday, October 17, 1996)]
[Notices]
[Pages 54246-54247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26592]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-109]
Initiation of Section 302 Investigation and Request for Public
Comment: Practices of the Government of Indonesia Regarding Certain
Incentives Related to the Promotion of the Indonesian Motor Vehicle
Sector
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of initiation of investigation; request for written
comments.
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SUMMARY: The Acting United States Trade Representative (USTR) has
initiated an investigation under section 302(b)(1) of the Trade Act of
1974, as amended, with respect to certain acts, policies and practices
of the Government of Indonesia concerning the grant of conditional tax
and tariff benefits intended to develop a motor vehicle sector in
Indonesia. The United States alleges that these acts, policies and
practices are inconsistent with certain provisions of the General
Agreement on Tariffs and Trade 1994 (GATT 1994), the Agreement on
Trade-Related Investment Measures (TRIMS Agreement), the Agreement on
Subsidies and Countervailing Measures (SCM Agreement), and the
Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPs Agreement), each 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 October 8, 1996. Written
comments from the public are due on or before noon on Friday, November
15, 1996.
ADDRESS: Office of the United States Trade Representative, 600 17th
Street N.W., Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT:
Joseph Damond, Director for Southeast Asia, (202) 395-6813, or Thomas
Robertson, Associate General Counsel, (202) 395-6800.
SUPPLEMENTARY INFORMATION: Section 302(b)(1) of the Trade Act of 1974,
as amended (the Trade Act) (19 U.S.C. 2412(b)(1)), 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 October 8, 1996, having consulted with the appropriate private
sector advisory committees, the USTR determined that an investigation
should be initiated to determine whether certain acts, policies and
practices of Indonesia intended to promote the development of an
Indonesian motor vehicle sector are actionable under section 301(a).
Indonesia adopted in 1993 a system of incentives for manufacturers of
motor vehicles and parts in the form of a reduction in duties on their
imports of certain products and a reduction in taxes on the sale of
motor vehicles. These benefits are conditional on compliance with
domestic content requirements and local content requirements with
regard to inputs. This system was expanded in February of 1996 to
provide additional tax and tariff incentives designed to promote a
``national car'' that was produced by an
[[Page 54247]]
Indonesian company, carried a unique Indonesian trademark and had a
gradually-increasing percentage of local content over the next three
years. The system was last modified in June of 1996, when the
``national car'' policy was modified to permit the ``national car'' to
be produced outside Indonesia.
The USTR believes that these acts, policies and practices are
inconsistent with certain aspects of the GATT 1994, the TRIMs
Agreement, the SCM Agreement and the TRIPS Agreement. In particular,
the program appears to be inconsistent with the most-favored-nation
treatment and national treatment provisions found in Articles I and III
of the GATT 1994; the prohibition in Article 2 of the TRIMs Agreement
on investment measures that are inconsistent with the national
treatment and quantitative restriction provisions in the GATT 1994; the
prohibition on certain subsidies in Articles 3, 6, and 28.2 of the SCM
Agreement; and the national treatment provision and prohibition on
unjustifiable encumbrances on the use of trademarks found in Articles
3, 20, and 65.5 of the TRIPs Agreement. The United States has reserved
the right to raise additional factual claims and legal matters during
the course of the consultations.
Investigation and Consultations
As required in section 303(a) of the Trade Act, the USTR has
requested consultations with the Government of Indonesia regarding the
issues under investigation. The request was made pursuant to Articles 1
and 4 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes (DSU), Article XXII:1 of the GATT 1994, Article
8 of the TRIMs Agreement, Articles 7 and 30 of the SCM Agreement, and
Article 64 of the TRIPS Agreement. 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 Indonesia 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 Friday,
November 15, 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, N.W., Washington, DC 20508.
Comments will be placed in a file (Docket 301-109) 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. 301-109) 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. 96-26592 Filed 10-16-96; 8:45 am]
BILLING CODE 3190-01-M