WTO Dispute Settlement Proceeding Regarding China-Measures Affecting Imports of Automobile Parts, 24764-24765 [E6-6222]

Download as PDF 24764 Federal Register / Vol. 71, No. 80 / Wednesday, April 26, 2006 / Notices wwhite on PROD1PC61 with NOTICES 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 to also 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 nonconfidential 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. An appointment to review the public file (Docket WTO/ DS–338, Canada Corn Dispute) may be made by calling the USTR Reading Room at (202) 395–6186. The USTR Reading Room is open to the public from 9:30 a.m. to noon and 1 p.m. to 4 p.m., Monday through Friday. Daniel Brinza, Assistant United States Trade Representative for Monitoring and Enforcement. [FR Doc. E6–6221 Filed 4–25–06; 8:45 am] BILLING CODE 3190–W6–P VerDate Aug<31>2005 16:58 Apr 25, 2006 Jkt 208001 OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket No. WTO/DS–340] WTO Dispute Settlement Proceeding Regarding China—Measures Affecting Imports of Automobile Parts 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 On March 30, 2006, the United States requested consultations regarding China’s treatment of imported auto parts. The measures through which China has provided such treatment include: SUMMARY: The Office of the United • Order No. 8 of the National States Trade Representative (USTR) is Development and Reform Commission providing notice that on March 30, 2006, in accordance with the Marrakesh (May 21, 2004), Policy on Development Agreement Establishing the World Trade of Automotive Industry; Organization (WTO Agreement), the • Decree 125 (April 1, 2005), United States requested consultations Measures for the Administration of regarding China’s treatment of imported Importation of Automotive Parts and motor vehicle parts, components, and Components for Complete Vehicles; accessories (‘‘auto parts’’). That request • Customs General Administration may be found at http://www.wto.org Public Announcement No. 4 (April 1, contained in a document designated as 2005), Rules for Determining Whether WT/DS340/1. USTR invites written Imported Automotive Parts and comments from the public concerning Components Constitute CBU Vehicles; the issues raised in this dispute. and • Any amendments, related measures, DATES: Although USTR will accept any comments received during the course of or implementing measures. China’s regulations appear to penalize the consultations, comments should be manufacturers for using imported auto submitted on or before May 8, 2006 to parts in the manufacture of vehicles for be assured of timely consideration by sale in China. Although China bound its USTR. tariffs for auto parts at rates significantly ADDRESSES: Comments should be lower than its tariff bindings for submitted (i) electronically, to complete vehicles, China appears to FR0615@ustr.eop.gov, with China Auto assess a charge on imported auto parts Parts (DS340) in the subject line, or (ii) equal to the tariff on complete vehicles, by fax, to Sandy McKinzy at (202) 395– if the imported parts are incorporated in 3640, with a confirmation copy sent a vehicle that contains imported parts in electronically to the electronic mail excess of specified thresholds. To the address above, in accordance with the extent that the charge is applied when requirements for submission set out a vehicle is manufactured within China, below. it would appear to constitute a tax on FOR FURTHER INFORMATION CONTACT: Jim imported auto parts not imposed on like Kelleher, Associate General Counsel, domestic auto parts. The charge also Office of the United States Trade appears to be applied in a manner so as Representative, 600 17th Street, NW., to afford protection to domestic Washington, DC 20508, (202) 395–3858. products. To the extent that the charge is SUPPLEMENTARY INFORMATION: Section imposed upon the importation of the 127(b) of the Uruguay Round auto parts, it appears to constitute a Agreements Act (URAA) (19 U.S.C. charge in excess of those set forth in 3537(b)(1)) requires that notice and China’s Schedule of Concessions and opportunity for comment be provided Commitments. Further, to the extent after the United States submits or China may be viewed as imposing a receives a request for the establishment lesser tariff on imported auto parts if the of a WTO dispute settlement panel. In final assembled vehicle contains an effort to provide additional specified amounts of local content, it opportunity for comment, USTR is providing notice that consultations have would be forgoing revenue otherwise due, and China would appear to be been requested pursuant to the WTO Understanding on Rules and Procedures providing a subsidy contingent upon the use of domestic rather than imported Governing the Settlement of Disputes goods. Finally, China’s regulations (DSU). If such consultations should fail specifically identify completely to resolve the matter and a dispute settlement panel is established pursuant knocked down (CKD) and semi-knocked down (SKD) kits and appear to assess to the DSU, such panel, which would them the tariff for complete vehicles. hold its meetings in Geneva, Office of the United States Trade Representative. ACTION: Notice; request for comments. AGENCY: PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1 Federal Register / Vol. 71, No. 80 / Wednesday, April 26, 2006 / Notices wwhite on PROD1PC61 with NOTICES USTR believes these measures are inconsistent with China’s obligations under Article 2 of the Agreement on Trade-Related Investment Measures, Articles II and III of the General Agreement on Tariffs and Trade 1994, Article 3 of the Agreement on Subsidies and Countervailing Measures, and Parts I.1.2 and I.1.7 of the Protocol on the Accession of the People’s Republic of China, including paragraphs 93 and 203 of the Working Party Report. 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 FR0615@ustr.eop.gov, with ‘‘China Auto Parts (DS340)’’ 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 to also 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 VerDate Aug<31>2005 16:58 Apr 25, 2006 Jkt 208001 top and bottom of the cover page and each succeeding page; and (3) Is encouraged to provide a nonconfidential 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–340, China Auto Parts 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. E6–6222 Filed 4–25–06; 8:45 am] BILLING CODE 3190–W6–P SECURITIES AND EXCHANGE COMMISSION [Securities Exchange Act of 1934 Release No. 53684] Order Extending Term of Short Sale Pilot April 20, 2006. On June 23, 2004, the Securities and Exchange Commission (‘‘Commission’’) approved new and amended short sale regulations in Regulation SHO under the Securities Exchange Act of 1934 (the ‘‘Act’’).1 On July 28, 2004, the Commission issued an order (‘‘First Pilot Order’’) creating a one year Pilot (‘‘Pilot’’) suspending the provisions of Rule 10a–1(a) under the Act 2 and any short sale price test of any exchange or national securities association for short sales 3 of certain securities.4 The Pilot 1 Securities Exchange Act Release No. 50103 (July 28, 2004), 69 FR 48008 (August 6, 2004) (‘‘Adopting Release’’). 2 17 CFR 240.10a–1. 3 ‘‘Short sale’’ is defined in Rule 200 of Regulation SHO, 17 CFR 242.200. 4 Securities Exchange Act Release No. 50104 (July 28, 2004), 69 FR 48032 (August 6, 2004). PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 24765 was created pursuant to Rule 202T of Regulation SHO, which established procedures to allow the Commission to temporarily suspend short sale price tests so that the Commission could study the effectiveness of short sale price tests.5 The First Pilot Order provided that the Pilot would commence on January 3, 2005 and terminate on December 31, 2005, and that we might issue further orders affecting the operation of the First Pilot Order.6 On November 29, 2004, we issued an order (‘‘Second Pilot Order’’) resetting the Pilot to commence on May 2, 2005 and end on April 28, 2006 to give market participants additional time to make system changes necessary to comply with the Pilot.7 We are issuing this Order (‘‘Third Pilot Order’’) to extend the termination date of the Pilot to August 6, 2007, the date on which temporary Rule 202T expires. Extension of the Pilot termination date will maintain the status quo with regard to price tests for Pilot securities and system designs of market participants while the staff completes its analysis of the Pilot results and the Commission conducts any additional short sale rulemaking. All other terms of the First Pilot Order remain unchanged. We may issue further orders affecting the operation of the Pilot. For the reasons discussed below, the Commission finds that extension of the Pilot is necessary and appropriate in the public interest and consistent with the protection of investors.8 Specifically, the First Pilot Order suspended price tests for the following: (1) Short sales in the securities identified in Appendix A to the First Pilot Order; (2) short sales in the securities included in the Russell 1000 index effected between 4:15 p.m. EST and the open of the effective transaction reporting plan of the Consolidated Tape Association (‘‘consolidated tape’’) on the following day; and (3) short sales in any security not included in paragraphs (1) and (2) effected in the period between the close of the consolidated tape and the open of the consolidated tape on the following day. 5 69 FR at 48012–13. We stated in the Adopting Release that conducting a pilot pursuant to Rule 202T would ‘‘allow us to obtain data on the impact of short selling in the absence of a price test to assist in determining, among other things, the extent to which a price test is necessary to further the objectives of short sale regulation, to study the effects of relatively unrestricted short selling on market volatility, price efficiency, and liquidity, and to obtain empirical data to help assess whether a short sale price test should be removed, in part or in whole, for some or all securities, or if retained, should be applied to additional securities.’’ Id. at 48009. 6 69 FR at 48033. 7 Securities Exchange Act Release No. 50747 (November 29, 2004), 69 FR 70480 (December 6, 2004). 8 See Section 36 of the Act. In addition, pursuant to Section 3(f) of the Act, we considered the impact of this extension on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). E:\FR\FM\26APN1.SGM 26APN1

Agencies

[Federal Register Volume 71, Number 80 (Wednesday, April 26, 2006)]
[Notices]
[Pages 24764-24765]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6222]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-340]


WTO Dispute Settlement Proceeding Regarding China--Measures 
Affecting Imports of Automobile Parts

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

-----------------------------------------------------------------------

SUMMARY: The Office of the United States Trade Representative (USTR) is 
providing notice that on March 30, 2006, in accordance with the 
Marrakesh Agreement Establishing the World Trade Organization (WTO 
Agreement), the United States requested consultations regarding China's 
treatment of imported motor vehicle parts, components, and accessories 
(``auto parts''). That request may be found at http://www.wto.org 
contained in a document designated as WT/DS340/1. 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 
May 8, 2006 to be assured of timely consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
FR0615@ustr.eop.gov, with China Auto Parts (DS340) 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: Jim Kelleher, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-3858.

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. In an effort to provide additional opportunity for comment, USTR 
is providing notice that consultations have been requested pursuant to 
the WTO Understanding on Rules and Procedures Governing the Settlement 
of Disputes (DSU). If such consultations should fail to resolve the 
matter and a dispute settlement panel is established pursuant to the 
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.

Major Issues Raised by the United States

    On March 30, 2006, the United States requested consultations 
regarding China's treatment of imported auto parts. The measures 
through which China has provided such treatment include:
     Order No. 8 of the National Development and Reform 
Commission (May 21, 2004), Policy on Development of Automotive 
Industry;
     Decree 125 (April 1, 2005), Measures for the 
Administration of Importation of Automotive Parts and Components for 
Complete Vehicles;
     Customs General Administration Public Announcement No. 4 
(April 1, 2005), Rules for Determining Whether Imported Automotive 
Parts and Components Constitute CBU Vehicles; and
     Any amendments, related measures, or implementing 
measures.
    China's regulations appear to penalize manufacturers for using 
imported auto parts in the manufacture of vehicles for sale in China. 
Although China bound its tariffs for auto parts at rates significantly 
lower than its tariff bindings for complete vehicles, China appears to 
assess a charge on imported auto parts equal to the tariff on complete 
vehicles, if the imported parts are incorporated in a vehicle that 
contains imported parts in excess of specified thresholds. To the 
extent that the charge is applied when a vehicle is manufactured within 
China, it would appear to constitute a tax on imported auto parts not 
imposed on like domestic auto parts. The charge also appears to be 
applied in a manner so as to afford protection to domestic products.
    To the extent that the charge is imposed upon the importation of 
the auto parts, it appears to constitute a charge in excess of those 
set forth in China's Schedule of Concessions and Commitments. Further, 
to the extent China may be viewed as imposing a lesser tariff on 
imported auto parts if the final assembled vehicle contains specified 
amounts of local content, it would be forgoing revenue otherwise due, 
and China would appear to be providing a subsidy contingent upon the 
use of domestic rather than imported goods. Finally, China's 
regulations specifically identify completely knocked down (CKD) and 
semi-knocked down (SKD) kits and appear to assess them the tariff for 
complete vehicles.

[[Page 24765]]

    USTR believes these measures are inconsistent with China's 
obligations under Article 2 of the Agreement on Trade-Related 
Investment Measures, Articles II and III of the General Agreement on 
Tariffs and Trade 1994, Article 3 of the Agreement on Subsidies and 
Countervailing Measures, and Parts I.1.2 and I.1.7 of the Protocol on 
the Accession of the People's Republic of China, including paragraphs 
93 and 203 of the Working Party Report.

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 FR0615@ustr.eop.gov, with ``China Auto 
Parts (DS340)'' 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 to 
also 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-340, China Auto Parts 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. E6-6222 Filed 4-25-06; 8:45 am]
BILLING CODE 3190-W6-P