[Federal Register Volume 72, Number 169 (Friday, August 31, 2007)]
[Notices]
[Pages 50417-50418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17357]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-358]


WTO Dispute Settlement Proceeding Regarding China--Certain 
Measures Granting Refunds, Reductions or Exemptions From Taxes and 
Other Payments

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 July 12, 2007, 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 certain Chinese measures granting refunds, 
reductions or exemptions to enterprises from taxes otherwise due the 
government. That request may be found at www.wto.org contained in a 
document designated as WT/DS358/13. 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 
October 5, 2007 to be assured of timely consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], with ``China Prohibited Subsidies (DS358)'' 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: Arun Venkataraman, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC., (202) 395-5694.

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, which is requested to be on August 31, 
2007.

Major Issues Raised by the United States

    China maintains measures that provide refunds, reductions, or 
exemptions to enterprises in China from taxes otherwise due the 
government on the condition that those enterprises purchase domestic 
over imported goods. The United States believes that, as such, these 
measures are inconsistent with China's obligations under Article 3.1(b) 
and 3.2 of the Agreement on Subsidies and Countervailing Measures 
(``SCM Agreement''). Furthermore, because they condition advantages on 
an enterprise's purchase of domestic over imported equipment, these 
measures appear to accord imported products treatment less favorable 
than that accorded ``like'' domestic products, inconsistent with 
Article III:4 of the General Agreement on Tariffs and Trade 1994 and 
Article 2.1 and Annex 1, paragraph 1(a), of the Agreement on Trade-
Related Investment Measures For the same reasons, these measures appear 
not to comply with China's obligations under paragraphs 7.2-7.3 and 
10.3 of Part I of its Protocol of Accession and paragraph 1.2 of Part I 
of its Protocol of Accession (to the extent that it incorporates 
paragraph 203 of the Report of the Working Party on the Accession of 
China).

[[Page 50418]]

    China also maintains measures that grant refunds, reductions, or 
exemptions from taxes otherwise due to the government on the condition 
that the beneficiary enterprises meet certain export performance 
criteria. The United States believes that, as such, these measures are 
inconsistent with China's obligations under Article 3.1(a) and 3.2 of 
the SCM Agreement and, consequently, paragraph 10.3 of Part I of 
China's Protocol of Accession, and paragraph 1.2 of Part I of its 
Protocol of Accession (to the extent that it incorporates paragraph 167 
of the Report of the Working Party on the Accession of China).

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 
Prohibited Subsidies (DS358)'' 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-358, China Prohibited Subsidies 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. E7-17357 Filed 8-30-07; 8:45 am]
BILLING CODE 3190-W7-P