Initiation of Section 301 Investigations of Digital Services Taxes, 34709-34711 [2020-12216]
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Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices
with the comments, and serve a
decision within 60 days of the close of
the record that either accepts, rejects, or
modifies AAR’s railroad-specific tax
information. Id. If no comments are filed
by July 6, 2020, AAR’s submitted
weighted average state tax rates will be
automatically adopted by the Board,
effective July 7, 2020. Id.
Decided: June 1, 2020.
By the Board, Allison C. Davis, Director,
Office of Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2020–12107 Filed 6–4–20; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36403]
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Trans Rail Holding Company—
Continuance of Control Exemption—
Merrimack & Grafton Railroad
Corporation
Trans Rail Holding Company (TRHC),
a noncarrier railroad holding company,
has filed a verified notice of exemption
under 49 CFR 1180.2(d)(2) to continue
in control of Merrimack & Grafton
Railroad Corporation (MGRC), upon
MGRC’s becoming a Class III rail carrier.
This transaction is related to a
concurrently filed verified notice of
exemption in Merrimack & Grafton
Railroad—Change of Operators
Exemption—Line of New England
Southern Railroad, Docket No. FD
36405. In that proceeding, MGRC seeks
an exemption under 49 CFR 1150.31 to
operate over approximately 73 miles of
rail line in New Hampshire (the Line).
According to the verified notice,
TRHC currently controls five Class III
railroads through ownership of their
controlling stock: (1) Vermont Railway,
Inc.; (2) the Clarendon and Pittsford
Railroad Company; (3) Washington
County Railroad Company; (4) the New
York & Ogdensburg Railway Company,
Inc.; and (5) Green Mountain Railroad
Corporation.
The verified notice states that: (1) The
Line does not connect with any of the
tracks of the other five railroads
controlled by TRHC; (2) the transaction
is not part of a series of anticipated
transactions that would connect the
Line to any of the tracks of the other
railroads; and (3) neither MGRC nor any
of the carriers controlled by TRHC are
Class I rail carriers. The proposed
transaction is therefore exempt from the
prior approval requirements of 49 U.S.C.
11323. See 49 CFR 1180.2(d)(2).
The earliest this transaction may be
consummated is June 20, 2020, the
VerDate Sep<11>2014
18:21 Jun 04, 2020
Jkt 250001
effective date of the exemption (30 days
after the verified notice was filed).
Under 49 U.S.C. 10502(g), the Board
may not use its exemption authority to
relieve a rail carrier of its statutory
obligation to protect the interests of its
employees. However, 49 U.S.C. 11326(c)
does not provide for labor protection for
transactions under 49 U.S.C. 11324 and
11325 that involve only Class III rail
carriers. Because this transaction
involves Class III rail carriers only, the
Board, under the statute, may not
impose labor protective conditions for
this transaction.
If the verified notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions to stay must be
filed no later than June 12, 2020 (at least
seven days before the exemption
becomes effective).
All pleadings, referring to Docket No.
FD 36403, must be filed with the
Surface Transportation Board either via
e-filing or in writing addressed to 395 E
Street SW, Washington, DC 20423–0001.
In addition, a copy of each pleading
must be served on TRHC’s
representative, Thomas W. Wilcox, GKG
Law, P.C., 1055 Thomas Jefferson Street
NW, Suite 500, Washington, DC 20007.
According to the verified notice, this
action is categorically excluded from
environmental review under 49 CFR
1105.6(c) and from historic preservation
reporting requirements under 49 CFR
1105.8(b)(1).
Board decisions and notices are
available at www.stb.gov.
Decided: June 2, 2020.
By the Board, Allison C. Davis, Director,
Office of Proceedings.
Brendetta Jones,
Clearance Clerk.
[FR Doc. 2020–12229 Filed 6–4–20; 8:45 am]
BILLING CODE 4915–01–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
[Docket No. USTR–2020–0022]
Initiation of Section 301 Investigations
of Digital Services Taxes
Office of the United States
Trade Representative.
ACTION: Notice of initiation of
investigations, and request for
comments.
AGENCY:
The U.S. Trade
Representative is initiating
SUMMARY:
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34709
investigations with respect to Digital
Services Taxes (DSTs) adopted or under
consideration by Austria, Brazil, the
Czech Republic, the European Union,
India, Indonesia, Italy, Spain, Turkey,
and the United Kingdom. The Office of
the United States Trade Representative
(USTR) is seeking public comments in
connection with these investigations.
DATES: To be assured of consideration,
you must submit written comments by
July 15, 2020.
ADDRESSES: You should submit written
comments through the Federal
eRulemaking Portal: https://
www.regulations.gov (Regulations.gov).
Follow the instructions for submitting
comments in section IV. The docket
number is USTR–2020–0022. For issues
with on-line submissions, please contact
the USTR Section 301 line at 202–395–
5725.
FOR FURTHER INFORMATION CONTACT: For
procedural questions concerning the
submission of written comments, please
contact the USTR Section 301 line at
202–395–5725.
For questions concerning the
investigation, please contact Patrick
Childress, Assistant General Counsel,
202–395–3150; or Robert Tanner,
Director for ICT Services & Digital
Trade, 202–395–6125.
For questions regarding specific
jurisdictions covered by the
investigations, please contact: For the
EU, EU member States, Turkey, and the
United Kingdom: Michael Rogers,
Director for Europe, 202–395–2684; for
Brazil, Courtney Smothers, Senior
Director for MERCOSUR Countries,
202–395–7657; for India, Brendan
Lynch, Deputy Assistant U.S. Trade
Representative, South and Central Asian
Affairs, 202–395–2851; and for
Indonesia, Bart Thanhauser, Director for
Southeast Asia and the Pacific, 202–
395–4088.
SUPPLEMENTARY INFORMATION:
I. Digital Services Taxes
Over the past two years, various
jurisdictions have taken under
consideration or adopted taxes on
revenues that certain companies
generate from providing certain digital
services to, or aimed at, users in those
jurisdictions. They are referred to as
Digital Services Taxes or DSTs.
Available evidence suggests the DSTs
are expected to target large, U.S.-based
tech companies. These jurisdictions
include:
Austria: In October 2019, Austria
adopted a DST that applies a 5% tax to
revenues from online advertising
services. The law went into force on
January 1, 2020. The tax applies only to
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Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices
companies with at least Ö750 million in
annual global revenues for all services
and Ö25 million in in-country revenues
for covered digital services.
Brazil: Brazil is considering a
legislative proposal entitled the
‘‘Contribution for Intervention in the
Economic Domain’’ or CIDE. If adopted,
CIDE would apply to the gross revenue
derived from digital services provided
by large technology companies.
The Czech Republic: The Parliament
of the Czech Republic is considering a
draft law that would apply a 7% DST to
revenues from targeted advertising and
digital interface services. The tax would
apply only to companies generating
Ö750 million in annual global revenues
for all services and CZK 50 million in
in-country revenues for covered digital
services.
The European Union: The European
Commission is considering a DST as
part of the financing package for its
proposed COVID–19 recovery plan. The
EU DST is based on a 2018 DST
proposal that was not adopted. The
2018 EU proposal included a 3% tax on
revenues from targeted advertising and
digital interface services, and would
have applied only to companies
generating at least Ö750 million in
global revenues from covered digital
services and at least Ö50 million in EUwide revenues for covered digital
services.
India: In March 2020, India adopted a
2% DST. The tax only applies only to
non-resident companies, and covers
online sales of goods and services to, or
aimed at, persons in India. The tax
applies only to companies with annual
revenues in excess of approximately Rs.
20 million (approximately U.S.
$267,000). The tax went into effect on
April 1, 2020.
Indonesia: Earlier this year, Indonesia
adopted an electronic transaction tax
that targets cross-border, digital
transactions. Further implementing
measures are required for the new tax to
go into effect.
Italy: Italy has adopted a DST. The
measure includes a 3% tax on revenues
from targeted advertising and digital
interface services. This tax applies only
to companies generating at least Ö750
million in global revenues for all
services and Ö5.5 million in in-country
revenues for covered digital services.
The tax applies as of January 1, 2020.
Spain: Spain is considering a draft
DST. The measure would apply a 3%
tax to revenues from targeted
advertising and digital interface
services. This tax would apply only to
companies generating at least Ö750
million in global revenues for all
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18:21 Jun 04, 2020
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services and Ö3 million in in-country
revenues for covered digital services.
Turkey: Turkey has adopted a DST.
The measure applies a 7.5% tax to
revenues from targeted advertising,
social media and digital interface
services. The tax applies only to
companies generating Ö750 million in
global revenues from covered digital
services and TL20 million in in-country
revenues from covered digital services.
The Turkish President has authority to
increase the tax rate up to 15%. The law
went into effect on March 1, 2020.
The United Kingdom: The United
Kingdom is considering a DST proposal
as part of its Finance Bill 2020. The
measure would apply a 2% tax on
revenues above £25 million to internet
search engines, social media, and online
marketplaces. The tax applies only to
companies generating at least £500
million in global revenues from covered
digital services and £25 million in incountry revenues from covered digital
services. The bill is in the final stages
of adoption by Parliament, and if
passed, payments would be due from
affected companies in 2021.
II. Initiation of Section 301
Investigations
Section 302(b)(1)(A) of the Trade Act
of 1974, as amended (Trade Act),
authorizes the U.S. Trade
Representative to initiate an
investigation to determine whether an
act, policy, or practice of a foreign
country is actionable under section 301
of the Trade Act. Actionable matters
under section 301 include, inter alia,
acts, polices, and practices of a foreign
country that are unreasonable or
discriminatory and burden or restrict
U.S. commerce. An act, policy, or
practice is unreasonable if the act,
policy, or practice, while not necessarily
in violation of, or inconsistent with, the
international legal rights of the United
States, is otherwise unfair and
inequitable.
Pursuant to section 302(b)(1)(B),
USTR has consulted with appropriate
advisory committees. USTR also has
consulted with agencies on the Section
301 Committee.
In light of concerns with the DSTs
adopted or under consideration by the
jurisdictions discussed above, the U.S.
Trade Representative has initiated
Section 301 investigations with respect
to DSTs adopted or under consideration
by Austria, Brazil, the Czech Republic,
the European Union, India, Indonesia,
Italy, Spain, Turkey, and the United
Kingdom. Pursuant to section 303(a) of
the Trade Act, the U.S. Trade
Representative has requested
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consultations with the governments of
these jurisdictions.
Pursuant to section 304 of the Trade
Act, the U.S. Trade Representative must
determine whether the act, policy, or
practice under investigation is
actionable under Section 301. If that
determination is affirmative, the U.S.
Trade Representative must determine
what action to take.
The investigation initially will focus
on the following concerns with DSTs:
Discrimination against U.S. companies;
retroactivity; and possibly unreasonable
tax policy. With respect to tax policy,
the DSTs may diverge from norms
reflected in the U.S. tax system and the
international tax system in several
respects. These departures may include:
Extraterritoriality; taxing revenue not
income; and a purpose of penalizing
particular technology companies for
their commercial success.
In addition to these areas of concern
with DSTs, USTR invites comments on
other aspects that may warrant a finding
that one or more of the covered DSTs
are actionable under Section 301.
III. Request for Public Comments
You may submit written comments on
any issue covered by the investigations.
In particular, USTR invites comments
with respect to:
• Concerns with one or more of the
DSTs adopted or under consideration by
the jurisdictions covered in these
investigations.
• Whether one or more of the covered
DSTs is unreasonable or discriminatory.
• The extent to which one or more of
the covered DSTs burdens or restricts
U.S. commerce.
• Whether one or more of the covered
DSTs is inconsistent with obligations
under the WTO Agreement or any other
international agreement.
• The determinations required under
section 304 of the Trade Act, including
what action, if any, should be taken.
In light of the uncertainties arising
from COVID–19 restrictions, USTR is
not at this time scheduling a public
hearing in these investigations. USTR
will provide further information in a
subsequent notice if a hearing is to be
held in these investigations.
IV. Procedures for Written Submissions
All submissions must be in English
and sent electronically via
Regulations.gov. To submit comments
via Regulations.gov, enter docket
number USTR–2020–0022. Find a
reference to this notice and click on the
link entitled ‘comment now!’ For further
information on using the
Regulations.gov website, please consult
the resources provided on the website
E:\FR\FM\05JNN1.SGM
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Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices
by clicking on ‘how to use
regulations.gov’ on the bottom of the
www.regulations.gov home page. USTR
will not accept hand-delivered
submissions.
The Regulations.gov website allows
users to submit comments by filling in
a ‘type comment’ field or by attaching
a document using an ‘upload file’ field.
USTR prefers that you submit comments
in an attached document. If you attach
a document, it is sufficient to type ‘see
attached in the ‘type comment’ field.
USTR strongly prefers submissions in
Adobe Acrobat (.pdf). If you use an
application other than Adobe Acrobat or
Word (.doc), please indicate the name of
the application in the ‘type comment’
field.
File names should reflect the name of
the person or entity submitting the
comments. Please do not attach separate
cover letters to electronic submissions;
rather, include any information that
might appear in a cover letter in the
comments themselves. Similarly, to the
extent possible, please include any
exhibits, annexes, or other attachments
in the same file as the comment itself,
rather than submitting them as separate
files.
For any comments submitted
electronically that contain business
confidential information (BCI), the file
name of the business confidential
version should begin with the characters
‘BCI.’ You must clearly mark any page
containing BCI by including ‘BUSINESS
CONFIDENTIAL’ on the top of that page
and clearly indicating, via brackets,
highlighting, or other means, the
specific information that is BCI. If you
request business confidential treatment,
you must certify in writing that
disclosure of the information would
endanger trade secrets or profitability,
and that the information would not
customarily be released to the public.
Filers of submissions containing BCI
also must submit a public version of
their comments. The file name of the
public version should begin with the
character ‘P.’ Follow the ‘BCI’ and ‘P’
with the name of the person or entity
submitting the comments. If these
procedures are not sufficient to protect
BCI or otherwise protect business
interests, please contact the USTR
Section 301 line at 202–395–5725 to
discuss whether alternative
arrangements are possible.
USTR will post submissions in the
docket for public inspection, except
BCI. You can view submissions on the
Regulations.gov website by entering
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18:21 Jun 04, 2020
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docket number USTR–2020–0022 in the
search field on the home page.
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2020–12216 Filed 6–4–20; 8:45 am]
BILLING CODE 3290–F0–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No. FAA–2020–0563]
Agency Information Collection
Activities: Requests for Comments;
Clearance of Renewed Approval of
Information Collection: Aircraft Noise
Certification Documents for
International Operations
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice and request for
comments.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, FAA
invites public comments about our
intention to request the Office of
Management and Budget (OMB)
approval to renew an information
collection. The collection aids to make
the aircraft noise certification
information easily accessible to the
flight crew and presentable upon
request to the appropriate foreign
officials for international airline
operation of U.S. carriers. The
information to be collected upholds the
U.S. obligations under the Convention
on International Civil Aviation and for
which FAA policy comply with
International Civil Aviation
Organization (ICAO) Standards and
Recommended Practices to the
maximum extent practicable. Thus the
FAA has adopted ICAO’s Standards and
Recommended Practices as US
regulations as a means of compliance
with Annex 16 and requires noise
documentation be carried on board
aircraft that leave the United States.
DATES: Written comments should be
submitted by August 4, 2020.
ADDRESSES: Please send written
comments:
By Electronic Docket:
www.regulations.gov (Enter docket
number into search field).
By mail: Sandy Liu, 800
Independence Ave. SW, Washington,
DC 20591, Attn: AEE–100.
By fax: 202–267–5594.
FOR FURTHER INFORMATION CONTACT:
Sandy R. Liu by email at: sandy.liu@
faa.gov; phone: 202–267–4748.
SUMMARY:
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34711
SUPPLEMENTARY INFORMATION:
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including (a)
Whether the proposed collection of
information is necessary for FAA’s
performance; (b) the accuracy of the
estimated burden; (c) ways for FAA to
enhance the quality, utility and clarity
of the information collection; and (d)
ways that the burden could be
minimized without reducing the quality
of the collected information. The agency
will summarize and/or include your
comments in the request for OMB’s
clearance of this information collection.
OMB Control Number: 2120–0737.
Title: Aircraft Noise Certification
Documents for International Operations.
Form Numbers: None. Reference:
ICAO Annex 16, Vol.1—Aircraft Noise,
Eighth edition (July 2017) Attachment G
for format.
Type of Review: Renewal of an
information collection.
Background: On March 2, 2010, the
FAA published the final rule Notice No.
91–312, Aircraft Noise Certification
Documents for International Operations
(75 FR 9327). It requires operators that
fly outside the United States, using
aircraft subject to ICAO, Annex 16,
Volume 1, to carry aircraft noise
certification information on board the
aircraft. This collection is needed to
ensure consistent international
compliance with the ICAO, Annex 16,
Volume 1, Amendment 8 that requires
certain noise information be carried on
board the aircraft. This information
must be easily accessible to the flight
crew and presentable upon request to
the appropriate foreign National
Aviation Authority (NAA) officials. The
collection is mandatory based on U.S.
regulations and international standards.
Respondents: Operators of U.S.
registered civil aircraft flying outside
the United States.
Frequency: 70 airplanes.
Estimated Average Burden per
Response: 25 minutes (0.42 hours).
Estimated Total Annual Burden: $25
per airplane × 70 airplanes affected =
$1,750.
Issued in Washington, DC, on June 2, 2020.
Sandy Lium,
Engineer, Noise Division, Office of
Environment and Energy, Noise Division
(AEE–100).
[FR Doc. 2020–12208 Filed 6–4–20; 8:45 am]
BILLING CODE 4910–13–P
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]]>Agencies
[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Notices]
[Pages 34709-34711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12216]
=======================================================================
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. USTR-2020-0022]
Initiation of Section 301 Investigations of Digital Services
Taxes
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of initiation of investigations, and request for
comments.
-----------------------------------------------------------------------
SUMMARY: The U.S. Trade Representative is initiating investigations
with respect to Digital Services Taxes (DSTs) adopted or under
consideration by Austria, Brazil, the Czech Republic, the European
Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.
The Office of the United States Trade Representative (USTR) is seeking
public comments in connection with these investigations.
DATES: To be assured of consideration, you must submit written comments
by July 15, 2020.
ADDRESSES: You should submit written comments through the Federal
eRulemaking Portal: https://www.regulations.gov (Regulations.gov).
Follow the instructions for submitting comments in section IV. The
docket number is USTR-2020-0022. For issues with on-line submissions,
please contact the USTR Section 301 line at 202-395-5725.
FOR FURTHER INFORMATION CONTACT: For procedural questions concerning
the submission of written comments, please contact the USTR Section 301
line at 202-395-5725.
For questions concerning the investigation, please contact Patrick
Childress, Assistant General Counsel, 202-395-3150; or Robert Tanner,
Director for ICT Services & Digital Trade, 202-395-6125.
For questions regarding specific jurisdictions covered by the
investigations, please contact: For the EU, EU member States, Turkey,
and the United Kingdom: Michael Rogers, Director for Europe, 202-395-
2684; for Brazil, Courtney Smothers, Senior Director for MERCOSUR
Countries, 202-395-7657; for India, Brendan Lynch, Deputy Assistant
U.S. Trade Representative, South and Central Asian Affairs, 202-395-
2851; and for Indonesia, Bart Thanhauser, Director for Southeast Asia
and the Pacific, 202-395-4088.
SUPPLEMENTARY INFORMATION:
I. Digital Services Taxes
Over the past two years, various jurisdictions have taken under
consideration or adopted taxes on revenues that certain companies
generate from providing certain digital services to, or aimed at, users
in those jurisdictions. They are referred to as Digital Services Taxes
or DSTs. Available evidence suggests the DSTs are expected to target
large, U.S.-based tech companies. These jurisdictions include:
Austria: In October 2019, Austria adopted a DST that applies a 5%
tax to revenues from online advertising services. The law went into
force on January 1, 2020. The tax applies only to
[[Page 34710]]
companies with at least [euro]750 million in annual global revenues for
all services and [euro]25 million in in-country revenues for covered
digital services.
Brazil: Brazil is considering a legislative proposal entitled the
``Contribution for Intervention in the Economic Domain'' or CIDE. If
adopted, CIDE would apply to the gross revenue derived from digital
services provided by large technology companies.
The Czech Republic: The Parliament of the Czech Republic is
considering a draft law that would apply a 7% DST to revenues from
targeted advertising and digital interface services. The tax would
apply only to companies generating [euro]750 million in annual global
revenues for all services and CZK 50 million in in-country revenues for
covered digital services.
The European Union: The European Commission is considering a DST as
part of the financing package for its proposed COVID-19 recovery plan.
The EU DST is based on a 2018 DST proposal that was not adopted. The
2018 EU proposal included a 3% tax on revenues from targeted
advertising and digital interface services, and would have applied only
to companies generating at least [euro]750 million in global revenues
from covered digital services and at least [euro]50 million in EU-wide
revenues for covered digital services.
India: In March 2020, India adopted a 2% DST. The tax only applies
only to non-resident companies, and covers online sales of goods and
services to, or aimed at, persons in India. The tax applies only to
companies with annual revenues in excess of approximately Rs. 20
million (approximately U.S. $267,000). The tax went into effect on
April 1, 2020.
Indonesia: Earlier this year, Indonesia adopted an electronic
transaction tax that targets cross-border, digital transactions.
Further implementing measures are required for the new tax to go into
effect.
Italy: Italy has adopted a DST. The measure includes a 3% tax on
revenues from targeted advertising and digital interface services. This
tax applies only to companies generating at least [euro]750 million in
global revenues for all services and [euro]5.5 million in in-country
revenues for covered digital services. The tax applies as of January 1,
2020.
Spain: Spain is considering a draft DST. The measure would apply a
3% tax to revenues from targeted advertising and digital interface
services. This tax would apply only to companies generating at least
[euro]750 million in global revenues for all services and [euro]3
million in in-country revenues for covered digital services.
Turkey: Turkey has adopted a DST. The measure applies a 7.5% tax to
revenues from targeted advertising, social media and digital interface
services. The tax applies only to companies generating [euro]750
million in global revenues from covered digital services and TL20
million in in-country revenues from covered digital services. The
Turkish President has authority to increase the tax rate up to 15%. The
law went into effect on March 1, 2020.
The United Kingdom: The United Kingdom is considering a DST
proposal as part of its Finance Bill 2020. The measure would apply a 2%
tax on revenues above [pound]25 million to internet search engines,
social media, and online marketplaces. The tax applies only to
companies generating at least [pound]500 million in global revenues
from covered digital services and [pound]25 million in in-country
revenues from covered digital services. The bill is in the final stages
of adoption by Parliament, and if passed, payments would be due from
affected companies in 2021.
II. Initiation of Section 301 Investigations
Section 302(b)(1)(A) of the Trade Act of 1974, as amended (Trade
Act), authorizes the U.S. Trade Representative to initiate an
investigation to determine whether an act, policy, or practice of a
foreign country is actionable under section 301 of the Trade Act.
Actionable matters under section 301 include, inter alia, acts,
polices, and practices of a foreign country that are unreasonable or
discriminatory and burden or restrict U.S. commerce. An act, policy, or
practice is unreasonable if the act, policy, or practice, while not
necessarily in violation of, or inconsistent with, the international
legal rights of the United States, is otherwise unfair and inequitable.
Pursuant to section 302(b)(1)(B), USTR has consulted with
appropriate advisory committees. USTR also has consulted with agencies
on the Section 301 Committee.
In light of concerns with the DSTs adopted or under consideration
by the jurisdictions discussed above, the U.S. Trade Representative has
initiated Section 301 investigations with respect to DSTs adopted or
under consideration by Austria, Brazil, the Czech Republic, the
European Union, India, Indonesia, Italy, Spain, Turkey, and the United
Kingdom. Pursuant to section 303(a) of the Trade Act, the U.S. Trade
Representative has requested consultations with the governments of
these jurisdictions.
Pursuant to section 304 of the Trade Act, the U.S. Trade
Representative must determine whether the act, policy, or practice
under investigation is actionable under Section 301. If that
determination is affirmative, the U.S. Trade Representative must
determine what action to take.
The investigation initially will focus on the following concerns
with DSTs: Discrimination against U.S. companies; retroactivity; and
possibly unreasonable tax policy. With respect to tax policy, the DSTs
may diverge from norms reflected in the U.S. tax system and the
international tax system in several respects. These departures may
include: Extraterritoriality; taxing revenue not income; and a purpose
of penalizing particular technology companies for their commercial
success.
In addition to these areas of concern with DSTs, USTR invites
comments on other aspects that may warrant a finding that one or more
of the covered DSTs are actionable under Section 301.
III. Request for Public Comments
You may submit written comments on any issue covered by the
investigations. In particular, USTR invites comments with respect to:
Concerns with one or more of the DSTs adopted or under
consideration by the jurisdictions covered in these investigations.
Whether one or more of the covered DSTs is unreasonable or
discriminatory.
The extent to which one or more of the covered DSTs
burdens or restricts U.S. commerce.
Whether one or more of the covered DSTs is inconsistent
with obligations under the WTO Agreement or any other international
agreement.
The determinations required under section 304 of the Trade
Act, including what action, if any, should be taken.
In light of the uncertainties arising from COVID-19 restrictions,
USTR is not at this time scheduling a public hearing in these
investigations. USTR will provide further information in a subsequent
notice if a hearing is to be held in these investigations.
IV. Procedures for Written Submissions
All submissions must be in English and sent electronically via
Regulations.gov. To submit comments via Regulations.gov, enter docket
number USTR-2020-0022. Find a reference to this notice and click on the
link entitled `comment now!' For further information on using the
Regulations.gov website, please consult the resources provided on the
website
[[Page 34711]]
by clicking on `how to use regulations.gov' on the bottom of the
www.regulations.gov home page. USTR will not accept hand-delivered
submissions.
The Regulations.gov website allows users to submit comments by
filling in a `type comment' field or by attaching a document using an
`upload file' field. USTR prefers that you submit comments in an
attached document. If you attach a document, it is sufficient to type
`see attached in the `type comment' field. USTR strongly prefers
submissions in Adobe Acrobat (.pdf). If you use an application other
than Adobe Acrobat or Word (.doc), please indicate the name of the
application in the `type comment' field.
File names should reflect the name of the person or entity
submitting the comments. Please do not attach separate cover letters to
electronic submissions; rather, include any information that might
appear in a cover letter in the comments themselves. Similarly, to the
extent possible, please include any exhibits, annexes, or other
attachments in the same file as the comment itself, rather than
submitting them as separate files.
For any comments submitted electronically that contain business
confidential information (BCI), the file name of the business
confidential version should begin with the characters `BCI.' You must
clearly mark any page containing BCI by including `BUSINESS
CONFIDENTIAL' on the top of that page and clearly indicating, via
brackets, highlighting, or other means, the specific information that
is BCI. If you request business confidential treatment, you must
certify in writing that disclosure of the information would endanger
trade secrets or profitability, and that the information would not
customarily be released to the public. Filers of submissions containing
BCI also must submit a public version of their comments. The file name
of the public version should begin with the character `P.' Follow the
`BCI' and `P' with the name of the person or entity submitting the
comments. If these procedures are not sufficient to protect BCI or
otherwise protect business interests, please contact the USTR Section
301 line at 202-395-5725 to discuss whether alternative arrangements
are possible.
USTR will post submissions in the docket for public inspection,
except BCI. You can view submissions on the Regulations.gov website by
entering docket number USTR-2020-0022 in the search field on the home
page.
Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2020-12216 Filed 6-4-20; 8:45 am]
BILLING CODE 3290-F0-P
