[Federal Register Volume 71, Number 195 (Tuesday, October 10, 2006)]
[Notices]
[Pages 59543-59544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16694]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-340]


WTO Dispute Settlement Proceeding Regarding China--Measures 
Affecting Imports of Automobile Parts

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 September 15, 2006, in accordance with the 
Marrakesh Agreement Establishing the World Trade Organization (``WTO 
Agreement''), the United States requested the establishment of a 
dispute settlement panel regarding China's treatment of imported motor 
vehicle parts, components, and accessories (``auto parts''). That 
request may be found at http://www.wto.org contained in a document 
designated as WT/DS340/8. USTR invites written comments from the public 
concerning the issues raised in this dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute, comments should be submitted on or before 
November 30, 2006 to be assured of timely consideration by USTR.

ADDRESSES: Comments should be submitted (i) Electronically, to 
[email protected], with ``China Auto Parts (DS340)'' in the subject 
line, or (ii) by fax, to Sandy McKinzy at (202) 395-3640, with a 
confirmation copy sent electronically to the electronic mail address 
above, in accordance with the requirements for submission set out 
below.

FOR FURTHER INFORMATION CONTACT: Jim Kelleher, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-3858.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay 
Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)), USTR is providing 
notice that the United States has requested the establishment of a WTO 
dispute settlement panel pursuant to the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes (``DSU''). Such panel, 
which would hold its meetings in Geneva, Switzerland, would be expected 
to issue a report on its findings and recommendations within nine 
months after it is established.

Major Issues Raised by the United States

    China's regulations on imported auto parts appear to penalize 
manufacturers for using imported auto parts in the manufacture of 
vehicles in China. Although China bound its tariffs for auto parts at 
rates significantly lower than its tariff bindings for complete 
vehicles, China assesses a charge on imported auto parts equal to the 
tariff on complete vehicles, if the imported parts are incorporated 
into a vehicle that contains imported parts in excess of specified 
thresholds.
    USTR believes that China's regulations are inconsistent with 
China's obligations under:
    (1) Article III:2 of the General Agreement on Tariffs and Trade 
1994 (``GATT 1994''), by imposing a charge on imported auto parts but 
not on domestic auto parts, and otherwise applying internal charges so 
as to afford protection to domestic production;
    (2) Article III:4 of the GATT 1994, by treating imported auto parts 
less favorably than like domestic auto parts by imposing additional 
administrative burdens and additional charges upon manufacturers that 
use imported parts in excess of specified thresholds, thereby affecting 
the internal sale, offering for sale, purchase, transportation, 
distribution, or use of imported auto parts;
    (3) Article III:5 of the GATT 1994, by requiring that a specified 
amount or proportion of the auto parts assembled into a complete motor 
vehicle be supplied from domestic sources, and otherwise applying 
internal quantitative regulations so as to afford protection to 
domestic production;
    (4) Article 2.1 and paragraphs 1(a) and 2(a) of Annex 1 of the 
Agreement on Trade-Related Investment Measures (``TRIMs Agreement''), 
by requiring motor vehicle manufacturers in China to purchase or use 
domestic auto parts in order to obtain advantages such as the avoidance 
of administrative burdens and the payment of additional charges and by 
imposing restrictions which generally restrict the importation by a 
manufacturer of auto parts used in or related to its local production;
    (5) Article II:1(a) and (b) of the GATT 1994, by according imported 
auto parts less favorable treatment than that provided for in its 
Schedule of Concessions and Commitments annexed to the GATT 1994 and 
imposing charges in excess of those set forth and provided therein;
    USTR also considers that China's regulations are inconsistent with 
China's obligations under: Article 3 of the Agreement on Subsidies and 
Countervailing Measures, Article XI of the GATT 1994, and Parts I.1.2 
and I.1.7 of the Protocol on the Accession of the People's Republic of 
China, including paragraphs 93 and 203 of the Working Party Report.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments should be 
submitted (i) Electronically, to [email protected], with ``China Auto 
Parts (DS340)'' in the subject line, or (ii) by fax, to Sandy McKinzy 
at (202) 395-3640, with a confirmation copy sent electronically to the 
electronic mail address above.
    USTR encourages the submission of documents in Adobe PDF format as 
attachments to an electronic mail. Interested persons who make 
submissions by electronic mail should not provide separate cover 
letters;

[[Page 59544]]

information that might appear in a cover letter should be included in 
the submission itself. Similarly, to the extent possible, any 
attachments to the submission should be included in the same file as 
the submission itself, and not as separate files.
    Comments must be in English. 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 designated as such and ``BUSINESS CONFIDENTIAL'' must be marked 
at the top and bottom of the cover page and each succeeding page. 
Persons who submit confidential business information are encouraged to 
also provide a non-confidential summary of the information.
    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 clearly so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
at the top and bottom of the cover page and each succeeding page; 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, which is located at 1724 F 
Street, NW., Washington, DC 20508. The public file will include non-
confidential comments received by USTR from the public with respect to 
the dispute; if a dispute settlement panel is convened or in the event 
of an appeal from such a panel, the U.S. submissions, the submissions, 
or non-confidential summaries of submissions, received from other 
participants in the dispute; the report of the panel and, if 
applicable, the report of the Appellate Body. The USTR Reading Room is 
open to the public, by appointment only, from 10 a.m. to noon and 1 
p.m. to 4 p.m., Monday through Friday. An appointment to review the 
public file (Docket WTO/DS-340, China Auto Parts Dispute) may be made 
by calling the USTR Reading Room at (202) 395-6186.

Daniel E. Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
 [FR Doc. E6-16694 Filed 10-6-06; 8:45 am]
BILLING CODE 3190-W7-P