[Federal Register Volume 72, Number 77 (Monday, April 23, 2007)]
[Notices]
[Pages 20143-20144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7606]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-363]


WTO Dispute Settlement Proceeding Regarding China--Measures 
Affecting Trading Rights and Distribution Services for Certain 
Publications and Audiovisual Entertainment Products

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 April 10, 2007, in accordance with the 
Marrakesh Agreement Establishing the World Trade Organization (WTO 
Agreement), the United States requested consultations with respect to 
(1) Certain measures that restrict trading rights with respect to 
imported films for theatrical release, audiovisual home entertainment 
products (e.g., video cassettes and DVDs), sound recordings, and 
publications (e.g., books, magazines, newspapers, and electronic 
publications), and (2) certain measures that restrict market access 
for, or discriminate against, foreign suppliers of distribution 
services for publications and foreign suppliers of audiovisual services 
(including distribution services) for audiovisual home entertainment 
products. That request may be found at http://www.wto.org contained in 
a document designated as WT/DS363/1. 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 consultations, comments should be submitted on or before 
May 7, 2007 to be assured of timely consideration by USTR.

ADDRESSES: Comments should be submitted (i) Electronically, to 
[email protected], with ``China Trading Rights and Distribution 
Services (DS363)'' 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: Steven F. Fabry, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC, (202) 395-3150.

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. In an effort to provide additional opportunity for comment, USTR 
is providing notice that consultations have been requested pursuant to 
the WTO Understanding on Rules and Procedures Governing the Settlement 
of Disputes (``DSU''). 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 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

    On April 10, 2007, the United States requested consultations with 
China with respect to certain measures pertaining to the protection and 
enforcement of intellectual property rights in China.
    The first matter on which the United States has requested 
consultations concerns certain measures of China that reserve to 
certain Chinese state-designated and wholly or partially state-owned 
enterprises the right to import films for theatrical release, 
audiovisual home entertainment products (e.g., video cassettes and 
DVDs), sound recordings, and publications (e.g., books, magazines, 
newspapers, and electronic publications). In this regard, the measures 
at issue include the following, as well as any amendments and related 
or implementing measures:
     The Regulations on Administration of the Films Industry;
     The Provisional Rules on the Entry Criteria for Operating 
Film Enterprises;
     The Administrative Regulation on Publishing;
     The Administrative Regulations on Audiovisual Products;
     The Catalogue for Guidance of Foreign Investment 
Industries;
     The Several Opinions of the Ministry of Culture, State 
Administration of Radio, Film and Television, General Administration of 
Press and Publication, National Development and Reform Commission and 
the Ministry of Commerce on Introducing Foreign Investment into the 
Cultural Sector;
     The Measures for the Administration of Import of Audio and 
Video Products;
     The Measures for Administration of Chinese Foreign 
Contractual Distribution Ventures of Audiovisual Products;
     The Administrative Regulations on Electronic Publications; 
and
     The Procedure for Examination and Approval of 
Establishment of Publication Importation Entities.
    It appears that these measures do not allow all Chinese enterprises 
and all foreign enterprises and individuals to have the right to import 
the Products into the customs territory of China. It also appears that 
foreign individuals and enterprises, including those not invested or 
registered in China, are accorded treatment less favorable than that 
accorded to enterprises in China with respect to the right to trade. 
These measures appear to USTR to be inconsistent with China's 
obligations under paragraphs 1.2, 5.1 and 5.2 of Part I of the Protocol 
on the Accession of the People's Republic of China and Article XI:1 of 
the General Agreement on Tariffs and Trade 1994.
    The second matter on which the United States has requested 
consultations concerns certain measures of China that impose market 
access restrictions or discriminatory limitations on foreign service 
providers seeking to engage in the distribution of publications and 
certain audiovisual home entertainment products. In this regard, the 
measures at issue include the following, as well as any amendments and 
related or implementing measures:
     The Administrative Regulation on Publishing;
     The Administrative Regulations on Audiovisual Products;
     The Provisions on Guiding the Orientation of Foreign 
Investment;
     The Catalogue for Guidance of Foreign Investment 
Industries;
     The Several Opinions of the Ministry of Culture, State 
Administration of Radio, Film and Television, General Administration of 
Press and Publication, National Development and Reform Commission and 
the Ministry of Commerce on Introducing Foreign Investment into the 
Cultural Sector;
     The Administrative Regulations on Management of Foreign-
Invested Book, Magazine and Newspaper Distribution Enterprises;
     The Administrative Regulations on the Publication Market 
(revised);
     The Administrative Regulations on Electronic Publications;
     The Administrative Measures on Subscription of Imported 
Publications;
     The Procedure for Examination and Approval of 
Establishment of Chinese-Foreign Entities, Cooperative Joint Ventures, 
and Wholly Foreign Owned Publication Distribution Enterprises; and

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     The Measures for Administration of Chinese Foreign 
Contractual Distribution Ventures of Audiovisual Products.
    It appears that these measures prohibit foreign service suppliers 
(including wholly or partially foreign-owned or foreign-invested 
enterprises) from engaging at least in certain types of distribution of 
publications and audiovisual home entertainment products within China. 
In addition, to the extent that some foreign service suppliers are 
allowed to engage in some aspects of the distribution of publications, 
there appear to be discriminatory requirements concerning such 
suppliers' registered capital, such suppliers' operating term, and the 
particular publications that such suppliers may distribute. 
Furthermore, to the extent that foreign services suppliers are 
permitted to engage in any distribution of audiovisual home 
entertainment products, the measures at issue appear to impose 
requirements that the service be supplied through a form of entity that 
Chinese persons control, or in which Chinese persons have a dominant 
position, or for which there is a limitation on the participation of 
foreign capital. These measures appear to USTR to be inconsistent with 
China's obligations under Articles XVI and XVII of the General 
Agreement on Trade in Services.

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 
Trading Rights and Distribution Services (DS363)'' 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; 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 
also to 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-363, China Trading Rights and Distribution 
Services Dispute) may be made by calling the USTR Reading Room at (202) 
395-6186.

Daniel Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
 [FR Doc. E7-7606 Filed 4-20-07; 8:45 am]
BILLING CODE 3190-W7-P