[Federal Register Volume 76, Number 44 (Monday, March 7, 2011)]
[Notices]
[Pages 12401-12403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5121]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Dispute No. WTO/DS413]
WTO Dispute Settlement Proceeding Regarding China--Certain
Measures Affecting Electronic Payment Services
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 February 11, 2011, the United
States requested establishment of a dispute settlement panel under the
Marrakesh Agreement Establishing the World Trade Organization (``WTO
Agreement'') with the People's Republic of China (``China'') concerning
certain restrictions and requirements maintained by China affecting
electronic payment services for payment card transactions and the
suppliers of those services. That request may be found at http://www.wto.org contained in a document designated as WT/DS413/2. 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 May 2, 2011, to be assured of timely
consideration by USTR.
ADDRESSES: Public comments should be submitted electronically to http://www.regulations.gov, docket number USTR-2010-026. If you are unable to
provide submissions to 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: Frank J. Schweitzer, Associate General
Counsel, Office of the United States Trade Representative, 600 17th
Street, NW., Washington, DC 20508, (202) 395-3150.
SUPPLEMENTARY INFORMATION: Section 127(b)(1) 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 establishment of a WTO dispute settlement panel.
Consistent with this obligation, USTR is providing notice that it has
requested a panel pursuant to the WTO Understanding on Rules and
Procedures Governing the Settlement of Disputes (``DSU''). Once it is
established, 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 of its establishment.
Major Issues Raised by the United States
On September 15, 2010, the United States requested consultations
with China concerning issues relating to certain restrictions and
requirements maintained by China affecting electronic payment services
for payment card transactions and the suppliers of those services.
Electronic payment services involve the services through which
transactions involving credit card, debit card, charge card, check
card, automated teller machine (``ATM'') card, prepaid card, or other
similar card or money transmission product, are processed and through
which transfers of funds between institutions participating in the
transactions are managed and facilitated. In the financial services
sector, as set out in China's Schedule of Specific Commitments on
Services annexed to the Protocol on the Accession of the People's
Republic of China, China undertook both market access and national
treatment commitments with respect to these services.
Despite its GATS commitments, China imposes market access
restrictions and requirements on service suppliers of other Members
seeking to supply electronic payment services in China. China UnionPay
(``CUP''), a Chinese entity, is the only entity that China permits to
supply electronic payment services for payment card transactions
denominated and paid in renminbi (``RMB'') in China. China also
requires the handling by CUP of all RMB transactions in Macao or Hong
Kong using payment cards issued in Mainland China, as well as any RMB
transactions in Mainland China using RMB payment cards issued in Hong
Kong, China or Macao, China.
In addition, China requires all payment card processing devices at
merchant locations, all ATMs, and all point-of-sale (``POS'') terminals
in China to be compatible with CUP's system and capable of accepting
CUP payment cards. China also requires that all acquiring institutions
post the CUP logo and be capable of accepting all payment cards bearing
the CUP logo. China further requires that all payment cards, including
``dual currency'' cards, issued in China capable of being used for
transactions denominated and paid in RMB bear the CUP logo. These
measures do not impose similar requirements regarding non-CUP payment
cards or to transactions using non-CUP payment cards. China also
requires that all inter-bank transactions involving payment cards be
handled through CUP. China prohibits the use of non-CUP payment cards
for cross-region or inter-bank transactions.
The United States considers that these measures are inconsistent
with China's obligations under GATS Article XVI:1 to accord services
and services suppliers of any other Member treatment no less favorable
than that provided for in
[[Page 12402]]
China's Schedule and that China is maintaining or adopting measures set
out in Article XVI:2. The United States also considers that these
measures are inconsistent with China's obligations under GATS Article
XVII to accord to services and service suppliers of any other Member
treatment no less favorable than that it accords to its own like
services and service suppliers.
In its request for the establishment of a panel, the United States
identified the following instruments through which the United States
understands that China maintains these measures:
Measures for the Administration of Bank Card Business by
the People's Bank of China (Yinfa [1999] 17), issued on 27 January
1999;
Circular of the People's Bank of China on Promulgation of
Opinions on Implementation of Joint Work in Bank Card Interoperability
in 2001 (Yinfa [2001] 37) issued on 19 February 2001;
Circular on Uniform Use of CUP Logo and its Holographic
Label for Anti-counterfeiting by the People's Bank of China (Yinfa,
[2001] 57), issued on 13 March 2001;
Notice of Circulating the Bank Card Connection Business
Standard by the People's Bank of China (Yinfa [2001] 76), issued 29
March 2001, including but not limited to the Appendix, Business
Practices for the Interoperable Service of Bank Cards
Opinions on Bank Card Interoperability Related Work in
2002 by the People's Bank of China (Yinfa [2002] 94), issued on 5 April
2002;
Circular regarding Issues concerning Bank Card
Interoperability Related Work by the People's Bank of China (Yinfa
[2002] 272), issued on 29 August 2002;
Circular on Further Improving Bank Card Interoperability
Related Work by the People's Bank of China (Yinfa [2003] 129), issued
on 2 July 2003;
Announcement of Clearing Arrangements Provided by Banks in
relation to Individuals' Deposits, Exchanges, Bank Card and Remittance
in RMB in Hong Kong (PBOC Announcement [2003] 16), issued on 19
November 2003;
Circular on Regulating the Administration of Foreign
Currency Bank Cards by the State Administration of Foreign Exchange
Circular (Huifa [2004] 66), issued on 30 June 2004;
Announcement of Clearing Arrangements Provided by Banks in
relation to Individuals' Deposits, Exchanges, Bank Cards and Remittance
in RMB in Macao (PBOC Announcement [2004] 8), issued on 3 August 2004;
Notice of the People's Bank of China concerning Relevant
Issues on Accepting and Using Renminbi Bank Cards in Border Areas
(Yinfa [2004] 219), issued on 21 September 2004;
Circular regarding Issues concerning Individual RMB
Business Handled by Banks in Mainland China and Banks in Hong Kong and
Macao by the People's Bank of China (Yinfa [2004] 254), issued on 28
October 2004;
Some Opinions of the People's Bank of China, the National
Reform and Development Commission, the Ministry of Public Security, the
Ministry of Finance, the Ministry of Information Industry, the Ministry
of Commerce, the Station Administration of Taxation, China Banking
Regulatory Commission and the State Administration of Foreign Exchange
on Promoting the Development of Bank Card Industry Some Opinions of the
People's Bank of China, the National Reform and Development Commission,
the Ministry of Public Security, the Ministry of Finance, the Ministry
of Information Industry, the Ministry of Commerce, the Station
Administration of Taxation, China Banking Regulatory Commission and the
State Administration of Foreign Exchange on Promoting the Development
of Bank Card Industry (Yinfa [2005] 103), issued 24 April 2005;
Guiding Opinions of the People's Bank of China on
Regulating and Promoting the Development of Bank Card Acceptance Market
(Yinfa [2005] 153), issued on 16 June 2005;
Notice of the People's Bank of China on the Relevant
Issues concerning Strengthening the Administration of Oversea Business
Acceptance of Bank Cards (Yinfa [2007] 273), issued on 6 August 2007;
Notice of the China Banking Regulatory Commission on the
Issues Concerning Wholly Foreign-funded and Chinese-foreign Equity
Joint Banks in Conducting the Bank Card Business (Yin Jian Fa [2007]
49), issued 6 June 2007;
Notice of the People's Bank of China, the China Banking
Regulatory Commission, the Ministry of Public Security and the State
Administration for Industry and Commerce on Strengthening the Safety
Management of Bank Cards and Preventing and Combating Bank Card Crimes
(Yinfa [2009] 142), issued 27 April 2009;
The Opinions of the Standing Office of the People's Bank
of China on the Circular on Strengthening the Safety Management of
Bankcards and Preventing and Fighting Crimes in Bank Cards by the
People's Bank of China, the China Banking Regulatory Commission, the
Ministry of Public Security and the State Administration for Industry
and Commerce (Yinfa [2009] 149), issued 1 August 2009;
Notice of the State Administration of Foreign Exchange on
the Management of Foreign Currency Bank Cards [2010] 53, issued 11
October 2010; and
The ``business specifications'' and ``technical
standards'' that are identified in the instruments above, including in
Document No. 17, Document No. 57, Document No. 129, and Document No.
49;
As well as any amendments, or any related implementing
measures, as of the date of the panel request.
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-2010-0026. 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 www.regulations.gov, enter docket number
USTR-2010-0026 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 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
[[Page 12403]]
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 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.
Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), 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 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
open to public inspection may be viewed on the http://www.regulations.gov Web site.
Bradford Ward,
Acting Assistant United States Trade Representative for Monitoring and
Enforcement.
[FR Doc. 2011-5121 Filed 3-4-11; 8:45 am]
BILLING CODE 3190-W1-P