[Federal Register Volume 65, Number 111 (Thursday, June 8, 2000)]
[Notices]
[Pages 36499-36500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14512]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-198]


WTO Consultations Regarding Romania's Use of Minimum Import 
Prices for Customs Valuation Purposes

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: The Office of the United States Trade Representative (USTR) is 
providing notice that on May 31, 2000, the United States requested 
consultations with Romania under the Marrakesh Agreement Establishing 
the World Trade Organization (WTO), regarding Romania's 1997 Customs 
Code (L141/1997) and Ministry of Finance General Customs Directive 
(Ordinance No. 5, 4 August 1998) and other related statutes and 
regulations. The United States alleges that Romania's customs code, 
directives, regulations and practice arbitrarily establish minimum and 
maximum import prices for such products as meat, eggs, fruits and 
vegetables, clothing, footwear, and certain distilled spirits. 
Additionally, Romania has instituted burdensome procedures for 
investigating import prices when the C.I.F. value falls below the 
minimum import price. The United States considers that this practice is 
inconsistent with Articles 1 through 7, and 12 of the Agreement on 
Customs Valuation (``CVA''); general notes 1, 2, and 4 of Annex 1 of 
the CVA; Articles II, X, and XI of the GATT 1994; Article 4.2 of the 
Agreement on Agriculture; and Articles 2 and 7 of the Agreement of 
Textiles and Clothing. Pursuant to Article 4.3 of the WTO Dispute 
Settlement Understanding (``DSU''), such consultations are to take 
place within a period of 30 days from the date of the request, or 
within a period otherwise mutually agreed between the United States and 
Romania. USTR invites written comments from the public concerning the 
issues raised in this dispute.

DATES: Although the USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before July 31 to be assured of timely consideration by 
USTR.

ADDRESSES: Submit comments to Sandy McKinzy, Monitoring and Enforcement 
Unit, Office of the General Counsel, Room 122, Office of the United 
States Trade Representative, 600 17th Street, N.W., Washington, D.C., 
20508, Attn: Romania Customs Valuation Dispute. Telephone: (202) 395-
3581.

FOR FURTHER INFORMATION CONTACT: Melida N. Hodgson, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street N.W., Washington, D.C., (202) 395-3582.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C. 3537(b)(1)) requires that notice and 
opportunity for comment be provided after the United States submits or 
receives a request for the establishment of a WTO dispute settlement 
panel. Consistent with this obligation, but in an effort to provide 
additional opportunity for comment, USTR is providing notice that 
consultations have been requested pursuant to the WTO Dispute 
Settlement Understanding. If such consultations should fail to resolve 
the matter and a dispute settlement panel is established pursuant to 
the DSU, such panel, which would hold its meeting in Geneva, 
Switzerland, would be expected to issue a report on its findings and 
recommendations within six to nine months after it is established.

[[Page 36500]]

Major Issues Raised by the United States

    The Agreement on Customs Valuation sets forth a clear hierarchy for 
the determination of the customs value of imported goods, and in no 
case may the customs value be determined on the basis of a minimum 
price (Articles 1 through 7). Romania's customs code, directives and 
regulations arbitrarily establish minimum and maximum import prices for 
such products as meat, eggs, fruits and vegetables, clothing, footwear, 
and certain distilled spirits. Additionally, Romania has instituted 
burdensome procedures for investigating import prices when the C.I.F. 
value falls below the minimum import price.
    Therefore, on May 31, 2000, the United States requested 
consultations with Romania under certain WTO agreements regarding 
Romania's customs valuation practices. Romania's customs valuation 
regime utilizes unpublished arbitrary minimum import prices to supplant 
the valuation methodology established in Articles 1 through 7 of the 
CVA, and therefore appears to be inconsistent with that Agreement. 
Furthermore, if an importer's declared value falls below the set 
minimum price, a ``guarantee'' is required based on the difference 
between the declared value and the minimum price. The use of this 
guarantee operates as a rejection of the declared value in a manner 
inconsistent with Articles 1 through 7 of the CVA and, in practice, a 
refund is not given to importers that established the correctness of 
the declared value. The United States' consultation request also 
alleges that Romania's customs regime is inconsistent with general 
notes 1, 2, and 4 of Annex 1 of the CVA; Articles II, X, and XI of the 
GATT 1994; Article 4.2 of the Agreement on Agriculture; and Articles 2 
and 7 of the Agreement on Textiles and Clothing.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. A person requesting that 
information contained in a comment submitted by that person be treated 
as confidential business information must certify that such information 
is business confidential and would not customarily be released to the 
public by the commenter. Confidential business information must be 
clearly marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at 
the top of each page of each copy.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by USTR to be 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. 2155(g)(2)). If the submitter believes that information 
or advice may qualify as such, the submitter--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a file on this dispute settlement proceeding, accessible 
to the public, in the USTR Reading Room: Room 101, Office of the United 
States Trade Representative, 600 17th Street, N.W., Washington, D.C. 
20508. The public file will include a listing of any comments received 
by USTR from the public with respect to the dispute; if a dispute 
settlement panel is convened, the U.S. submission to that panel, the 
submissions, or non-confidential summaries of submissions, to the panel 
received from other participants in the dispute, as well as the report 
of the panel; and, if applicable, the report of the Appellate Body. An 
appointment to review the public file (Docket WTO/D-198, Romania 
Customs Valuation Dispute) may be made by calling Brenda Webb, (202) 
395-6186. The USTR Reading Room is open to the public from 9:30 a.m. to 
12 noon and 1 p.m. to 4 p.m., Monday through Friday.

A. Jane Bradley,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 00-14512 Filed 6-7-00; 8:45 am]
BILLING CODE 3190-01-M