[Federal Register Volume 75, Number 84 (Monday, May 3, 2010)]
[Notices]
[Pages 23318-23319]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10179]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS403]


WTO Dispute Settlement Proceeding Regarding Philippines--Taxes on 
Distilled Spirits

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 March 29, 2010, the United 
States requested establishment of a dispute settlement panel under the 
Marrakesh Agreement Establishing the World Trade Organization (``WTO 
Agreement'') with respect to the taxation of imported distilled spirits 
in the Philippines. That request may be found at http://www.wto.org in 
a document designated as WT/DS403/4. The panel was established by the 
World Trade Organization (``WTO'') Dispute Settlement Body on April 20, 
2010. 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 settlement proceedings, comments should be 
submitted on or before June 2, 2010 to be assured of timely 
consideration by USTR.

ADDRESSES: Public comments should be submitted electronically to http://www.regulations.gov, docket number USTR-2010-0005. If you are unable 
to provide submissions by http://www.regulations.gov, please contact 
Sandy McKinzy at (202) 395-9483 to arrange for an alternative method of 
transmission. If (as explained below) the comment contains confidential 
information, then the comment should be submitted by fax only to Sandy 
McKinzy at (202) 395-3640.

FOR FURTHER INFORMATION CONTACT: Courtney E. Smothers, Associate 
General Counsel, Office of the United States Trade Representative, 600 
17th Street, NW., Washington, DC 20508, (202) 395-5657.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C. 2527(b)(1)) requires that notice and 
opportunity for comment be provided after the United States submits or 
receives a request for establishment of a WTO dispute settlement panel. 
Consistent with this obligation, USTR is providing notice that it 
requested a panel and the panel has been established pursuant to the 
WTO Understanding on Rules and Procedures Governing the Settlement of 
Disputes (``DSU''). The panel will hold its meetings in Geneva, 
Switzerland, and 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

    The United States has raised concerns with the Philippines over 
taxation of distilled spirits many times over the past several years, 
both bilaterally and in WTO forums. On January 14, 2010, the United 
States requested consultations regarding this issue. The Philippines 
taxes distilled spirits at rates that differ depending on the product 
from which the spirit is distilled. The Philippines taxes distilled 
spirits made from certain materials that are typically produced in the 
Philippines, such as cane sugar and palm, at a low rate (e.g. 13.59 
pesos per proof liter in 2009). Other distilled spirits are taxed at 
significantly higher rates (from approximately ten to forty times 
higher) than the low rate applied to domestic products. The 
Philippines' taxes on distilled spirits appear not to tax similarly 
imported distilled spirits

[[Page 23319]]

as compared to directly competitive or substitutable domestic distilled 
spirits. The taxes appear to be applied in a way that affords 
protection to the domestic products. In addition, the taxes appear to 
subject imported distilled spirits to internal taxes in excess of those 
applied to like domestic products. Accordingly, the tax treatment of 
distilled spirits in the Philippines appears to be inconsistent with 
Article III:2 of the GATT 1994.
    On January 14, 2010, the United States requested consultations with 
the Philippines. That request may be found at http://www.wto.org 
contained in a document designated as WT/DS403/1. Consultations were 
held in Geneva on February 23, 2010, but did not resolve the concerns 
with respect to the Philippine taxes.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Persons may submit public 
comments electronically to http://www.regulations.gov docket number 
USTR-2010-0005. If you are unable to provide submissions by http://www.regulations.gov, please contact Sandy McKinzy at (202) 395-9483 to 
arrange for an alternative method of transmission.
    To submit comments via http://www.regulations.gov, enter docket 
number USTR-2009-0035 on the home page and click ``search''. The site 
will provide a search-results page listing all documents associated 
with this docket. Find a reference to this notice by selecting 
``Notice'' under ``Document Type'' on the left side of the search-
results page, and click on the link entitled ``Submit a Comment.'' (For 
further information on using the http://www.regulations.gov Web site, 
please consult the resources provided on the Web site by clicking on 
``How to Use This Site'' on the left side of the home page.)
    The http://www.regulations.gov site provides the option of 
providing comments by filling in a ``Type Comment and Upload File'' 
field, or by attaching a document. It is expected that most comments 
will be provided in an attached document. If a document is attached, it 
is sufficient to type ``See attached'' in the ``Type Comment and Upload 
File'' field.
    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 submitter. 
Confidential business information must be clearly designated as such 
and the submission must be marked ``BUSINESS CONFIDENTIAL'' at the top 
and bottom of the cover page and each succeeding page. Any comment 
containing business confidential information must be submitted by fax 
to Sandy McKinzy at (202) 395-3640. A non-confidential summary of the 
confidential information must be submitted to http://www.regulations.gov. The non-confidential summary will be placed in the 
docket and open to public inspection.
    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) Must provide a non-confidential summary of the information or 
advice.

Any comment containing confidential information must be submitted by 
fax. A non-confidential summary of the confidential information must be 
submitted to http://www.regulations.gov. The non-confidential summary 
will be placed in the docket and open to public inspection.
    USTR will maintain a docket on this dispute settlement proceeding 
accessible to the public. 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, any non-confidential 
submissions, or non-confidential summaries of submissions, received 
from other participants in the dispute, will be made available to the 
public on USTR's Web site at http://www.ustr.gov, and the report of the 
panel, and, if applicable, the report of the Appellate Body, will be 
available on the Web site of the World Trade Organization, http://www.wto.org.
    Comments will be placed in the docket and 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 or 
information determined by USTR to be confidential in accordance with 19 
U.S.C. 2155(g)(2). Comments open to public inspection may be viewed on 
the http://www.regulations.gov Web site.

Steven F. Fabry,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 2010-10179 Filed 4-30-10; 8:45 am]
BILLING CODE 3190-W0-P