[Federal Register: September 22, 2008 (Volume 73, Number 184)]
[Notices]
[Page 54640-54642]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se08-85]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. WTO/DS375]
WTO Dispute Settlement Proceeding Regarding European
Communities--Tariff Treatment of Certain Information Technology
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 August 18, 2008, in accordance
with the World Trade Organization (``WTO'') Understanding on Rules and
Procedures Governing the Settlement of Disputes (``DSU''), the United
States, jointly with Japan and the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu, requested the establishment of a
dispute settlement panel regarding the tariff treatment accorded by the
European Communities (``EC'') and its member States to set-top boxes
with a communication function, flat panel displays, and certain
multifunctional digital machines. That request may be found at
www.wto.org contained in a document designated as WT/DS375/8. USTR
invites written comments from
[[Page 54641]]
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
October 24, 2008 to be assured of timely consideration by USTR.
ADDRESSES: Comments should be submitted (i) electronically, to
FR0809@ustr.eop.gov, with ``EC Information Technology Products
(DS375)'' 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: Elissa Alben, Assistant General
Counsel, Office of the United States Trade Representative, 600 17th
Street, NW., Washington, DC, (202) 395-3150.
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'') to review the
issues identified below. 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
The EC and its member States impose duties on set-top boxes with a
communication function, flat panel displays, and certain
multifunctional digital machines.\1\
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\1\ Machines which perform two or more of the functions of
printing, copying, or facsimile transmission, capable of connecting
to an automatic data processing machine or to a network (including
devices commercially known as MFPs (multifunctional printers), other
``input or output units'' of ``automatic data processing machines'',
and facsimile machines).
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Set-top boxes with a communication function. On May 7,
2008, the EC published an amendment to the Explanatory Notes to the
EC's Combined Nomenclature (CN), which provides that the duty-free
heading CN 8528 71 13 (``set-top boxes with a communication function'')
no longer includes set-top boxes with modems of certain types (e.g.,
Ethernet modems) or set-top boxes which ``incorporate a device
performing a recording or reproducing function (for example, a hard
disk or DVD drive).'' As a result of this exclusion, the EC and its
member States impose a duty on these set-top boxes. In addition, the EC
added an explanatory note to CN 8521 90 00 indicating that the
subheading includes set-top boxes ``which incorporate a device
performing a recording or reproducing function (for example, a hard
disk or DVD drive).'' Products classified in CN 8521 90 00 are subject
to an MFN duty of 13.9%.
Flat panel displays (including LCD, electro luminescence,
plasma and other technologies). On March 31, 2005, the EC published
Council Regulation (EC) No 493/2005, stating that certain flat panel
displays using LCD technology that are ``capable of reproducing video
images from a source other than an automatic data-processing machine''
are not covered by the Information Technology Agreement (ITA) or by the
Communication on its implementation (Council Decision 97/359/EC of 24
March 1997). On April 26, 2005, the EC issued Commission Regulation
(EC) No 634/2005, stating that flat panel displays with certain
attributes, including DVI, would be classified in a dutiable tariff
line. On December 29, 2005, the EC published Commission Regulation (EC)
No 2171/2005, which also provided that certain flat panel displays
would be classified in a dutiable tariff line if they had certain
attributes, including DVI. On December 30, 2006, the EC published
amendments to the Explanatory Notes to accompany CN 8471 60 80 and 8528
21 90. Like the regulations, the Explanatory Notes provide that flat
panel displays with certain attributes, such as DVI, may not be
classified in the duty-free tariff line 8471 60 80 and would be
classified in a dutiable tariff line. EC member States assess duties on
flat panel displays. Furthermore, while the EC has temporarily
suspended the collection of duties on some flat panel displays, it
appears to fail to accord tariff treatment that is no less favorable
than that provided for in its Schedule.
Multifunctional digital machines. In 1999, the EC
published Commission Regulation (EC) No 517/99, which provided that
certain ``output units'' would be classified in a tariff line with a 6%
MFN duty. On March 9, 2006, the EC published Commission Regulation (EC)
No 400/2006, which classified certain ``output units'' or facsimile
machines, under CN subheading 9009 12 00, as indirect process
electrostatic photocopiers. The EC Customs Code Committee also issued a
statement indicating that ``if a multifunctional device (fax, printer,
scanner, copier) has the capability of photocopying in black and white
12 or more pages per minute (A4 format) this indicates that the product
is classifiable in heading 9009 as a photocopying apparatus.''
Consistent with that statement, on October 31, 2006, the EC published
Commission Regulation (EC) No 1549/2006, which provides that certain
``output units'' or facsimile machines capable of copying more than 12
monochrome pages per minute are classified in a dutiable tariff line.
EC member States assess duties on certain ``input or output units'' and
facsimile machines.
These measures appear to USTR to be inconsistent with the EC's
obligations under Articles II:1(a) and II:1(b) of the General Agreement
on Tariffs and Trade 1994 (``GATT 1994'') and its Schedule and with the
member States' obligations under Articles II:1(a) and II:1(b) of the
GATT 1994 and their Schedules, and they appear to nullify or impair
benefits accruing to the United States under the GATT 1994.
In addition, with respect to set-top boxes, the Tariff and
Statistical Nomenclature Section of the Customs Code Committee
delivered favorable opinions with respect to the proposed amendments to
the Explanatory Notes contained in 2008/C 112/03 in October 2006 and
May 2007, respectively. It did not publish the amended explanatory
notes in the EC Official Journal until May 7, 2008. Furthermore, member
States were applying duties to set-top boxes using the approach
specified in 2008/C 112/03 prior to May 7, 2008. These actions appear
to USTR to be inconsistent with the EC's obligations under GATT 1994
Articles X:1 and X:2.
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 FR0809@ustr.eop.gov, with ``EC
Information Technology Products (DS375)'' 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
[[Page 54642]]
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.
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, any non-
confidential 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-375, EC Information Technology
Products 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. E8-22101 Filed 9-19-08; 8:45 am]
BILLING CODE 3190-W8-P