[Federal Register Volume 77, Number 146 (Monday, July 30, 2012)]
[Notices]
[Pages 44706-44707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18429]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Dispute No. WTO/DS431]


WTO Dispute Settlement Proceeding Regarding China--Measures 
Related to the Exportation of Rare Earths, Tungsten and Molybdenum

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 the United States has requested the 
establishment of a dispute settlement panel under the Marrakesh 
Agreement Establishing the World Trade Organization (``WTO 
Agreement''). That request may be found at www.wto.org contained in a 
document designated as WT/DS431/6. 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 August 27, 2012, to be assured of timely 
consideration by USTR.

ADDRESSES: Public comments should be submitted electronically to 
www.regulations.gov, docket number USTR-2012-0005. If you are unable to 
provide submissions by 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: Jared Wessel, Assistant General 
Counsel, or Ben Kostrzewa, Assistant General Counsel, Office of the 
United States Trade Representative, 600 17th Street NW., Washington, DC 
20508, (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. Consistent with this obligation, USTR is providing notice that a 
dispute settlement panel has been requested pursuant to the WTO 
Understanding on Rules and Procedures Governing the Settlement of 
Disputes (``DSU''). The panel will hold its meetings in Geneva, 
Switzerland.

Major Issues Raised by the United States

    On June 27, 2012, the United States requested the establishment of 
a panel regarding China's restraints on the export from China of 
various forms of rare earths, tungsten and molybdenum (collectively, 
the ``materials''). These export restraints include export duties on 
the materials; quantitative restrictions such as quotas on the export 
of the materials; and additional requirements that impose restrictions 
on the trading rights of enterprises seeking to export various forms of 
rare earths and molybdenum, such as prior export performance and 
minimum registered capital requirements. In addition, China administers 
these export quotas on the materials in a manner that is not uniform, 
impartial, or reasonable, such as by the use of criteria in the 
application and allocation process that lack definition or do not 
contain sufficient guidelines or standards in how they should be 
applied.
    Forms of rare earths include, but are not limited to, items falling 
under the following eight-digit HS numbers identified in the 
Announcement No. 27 Issuing the 2012 Tariff Implementation Program 
(State Council Customs Tariff Commission, shuiweihui, No. 27, issued 
December 9, 2011, effective January 1, 2012) (hereinafter, the ``2012 
Tariff Implementation Program''): 25309020, 26122000, 28053011, 
28053012, 28053013, 28053014, 28053015, 28053016, 28053017, 28053019, 
28053021, 28053029, 28461010, 28461020, 28461030, 28461090, 28469011, 
28469012, 28469013, 28469014, 28469015, 28469016, 28469017, 28469019, 
28469021, 28469022, 28469023, 28469024, 28469025, 28469026, 28469028, 
28469029, 28469031, 28469032, 28469033, 28469034, 28469035, 28469036, 
28469039, 28469041, 28469042, 28469043, 28469044, 28469045, 28469046, 
28469048, 28469049, 28469091, 28469092, 28469093, 28469094, 28469095, 
28469096, 28469099, 72029911, 72029919, 72029991 and 72029999. Forms of 
rare earths also include, but are not limited to, items falling under 
the following 10-digit Chinese Customs Commodity Codes (``CCC Codes''), 
as identified in the Notice on Issuing the ``2012 Export Licensing 
Management Commodities List'' (Ministry of Commerce and General 
Administration of Customs Notice No. 98 (December 30, 2011)), 
(hereinafter the ``2012 Export Licensing Management Commodities 
List''): 2530902010, 2530902090, 2612200000, 2805301100, 2805301200, 
2805301300, 2805301400, 2805301510, 2805301590, 2805301600, 2805301700, 
2805301913, 2805301914, 2805301915, 2805301990, 2805302110, 2805302190, 
2805302910, 2805302990, 2846101000, 2846102000, 2846103000, 2846109010, 
2846109090, 2846901100, 2846901200, 2846901300, 2846901400, 2846901500, 
2846901600, 2846901700, 2846901920, 2846901930, 2846901940, 2846901970, 
2846901980, 2846901991, 2846901992, 2846901999, 2846902100, 2846902200, 
2846902300, 2846902400, 2846902500, 2846902600, 2846902810, 2846902890, 
2846902900, 2846903100, 2846903200, 2846903300, 2846903400, 2846903500, 
2846903600, 2846903900, 2846904100, 2846904200, 2846904300, 2846904400, 
2846904500, 2846904600, 2846904810, 2846904890, 2846904900, 2846909100, 
2846909200, 2846909300, 2846909400, 2846909500, 2846909600, 2846909910, 
2846909990, 7202991100, 7202991200, 7202999191 and 7202999199.
    Forms of tungsten include, but are not limited to, items falling 
under the following eight-digit HS numbers, as identified in the 2012 
Tariff Implementation Program: 26209910, 28259011, 28259012, 28259019, 
28418010, 28418020, 28418030, 28418040, 28418090, 28499020, 72028010, 
72028020, 81011000, 81019400 and 81019700. Forms of tungsten also 
include, but are not limited to, items falling under the following 10-
digit CCC Codes, as identified in the 2012 Export Licensing Management 
Commodities List: 2611000000, 2620991000, 2825901100, 2825901200, 
2825901910, 2841801000, 2841802000, 2841803000, 2841804000, 2849902000, 
8101100010, 8101100090, 8101940000 and 8101970000.

[[Page 44707]]

    Forms of molybdenum include, but are not limited to, items falling 
under the following eight-digit HS numbers, as identified in the 2012 
Tariff Implementation Program: 26131000, 26139000, 28257000, 28417010, 
28417090, 72027000, 81021000, 81029400 and 81029700. Forms of 
molybdenum also include, but are not limited to, items falling under 
the following 10-digit CCC Codes, as identified in the 2012 Export 
Licensing Management Commodities List: 2613100000, 2613900000, 
2825700000, 2841701000, 2841709000, 7202700000, 8102100000, 8102940000 
and 8102970000.
    USTR believes that these export restraints and China's 
administration of and manner of imposing these export restraints are 
inconsistent with China's obligations under Articles X and XI of the 
General Agreement on Tariffs and Trade 1994; paragraphs 2(A)2, 5.1 and 
11.3 of Part I of the Protocol on the Accession of the People's 
Republic of China (``Accession Protocol''); and the provisions of 
paragraph 1.2 of Part I of the Accession Protocol (which incorporates 
commitments in paragraphs 83, 84, 162 and 165 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 this dispute. Persons may submit public 
comments electronically to www.regulations.gov docket number USTR-2012-
0005. If you are unable to provide submissions by www.regulations.gov, 
please contact Sandy McKinzy at (202) 395-9483 to arrange for an 
alternative method of transmission.
    To submit comments via www.regulations.gov, enter docket number 
USTR-2012-0005 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 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 www.regulations.gov site provides the option of providing 
comments by filling in a ``Type Comments'' field, or by attaching a 
document using an ``upload file'' field. 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 
Comments'' 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 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 B
    (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 www.regulations.gov. The non-
confidential summary will be placed in the docket and open to public 
inspection.
    Pursuant to section 127(e) of the Uruguay Round Agreements Act (19 
U.S.C. 3537(e)), USTR will maintain a docket on this dispute settlement 
proceeding accessible to the public at www.regulations.gov, docket 
number USTR-2012-0005. 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 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, www.wto.org. Comments 
open to public inspection may be viewed on the www.regulations.gov Web 
site.

Bradford L. Ward,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 2012-18429 Filed 7-27-12; 8:45 am]
BILLING CODE 3290-F2-P