Notice of Modification of Section 301 Action: Investigation of France's Digital Services Tax, 2479-2480 [2021-00425]
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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
under section 301(b) of the Trade Act.
In particular:
1. India’s DST, by its structure and
operation, discriminates against U.S.
digital companies, including due to the
selection of covered services and its
applicability only to non-resident
companies.
2. India’s DST is unreasonable
because it is inconsistent with
principles of international taxation,
including due to its application to
revenue rather than income,
extraterritorial application, and failure
to provide tax certainty.
3. India’s DST burdens or restricts
U.S. commerce.
IV. Further Proceedings
Sections 301(b) and 304(a)(1)(B) of the
Trade Act provides that if the U.S.
Trade Representative determines that an
act, policy, or practice of a foreign
country is unreasonable or
discriminatory and burdens or restricts
United States commerce, the U.S. Trade
Representative shall determine what
action, if any, to take under Section
301(b). These matters will be addressed
in subsequent proceedings under
Section 301.
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2021–00362 Filed 1–11–21; 8:45 am]
BILLING CODE 3290–F0–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
[Docket Number USTR–2019–0009]
Notice of Modification of Section 301
Action: Investigation of France’s
Digital Services Tax
Office of the United States
Trade Representative (USTR).
ACTION: Notice.
AGENCY:
The U.S. Trade
Representative has determined to
modify the action being taken in this
investigation by suspending, until
further notice, the additional duties on
products of France scheduled to take
effect on January 6, 2021.
DATES: The additional duties on
products of France are suspended
indefinitely, as of the previously
scheduled effective date of 12:01 a.m.
eastern standard time on January 6,
2021.
FOR FURTHER INFORMATION CONTACT: For
questions concerning the investigation,
please contact Thomas Au or Patrick
Childress, Assistant General Counsels at
(202) 395–0380 and (202) 385–9531,
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
19:25 Jan 11, 2021
Jkt 253001
respectively, Robert Tanner, Director,
Services and Investment at (202) 395–
6125, or Michael Rogers, Director for
Europe at (202) 395–2684. For specific
questions on customs classification or
implementation of additional duties on
products, contact traderemedy@cbp.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On July 10, 2019, the U.S. Trade
Representative initiated the
investigation of France’s digital services
tax (DST) pursuant to section
302(b)(1)(A) of the Trade Act of 1974, as
amended (Trade Act). See 84 FR 34042
(July 16, 2019) (July 16, 2019 notice).
The July 16, 2019 notice invited public
comment on France’s DST, including
whether the tax would discriminate
against U.S. companies, the retroactive
application of the new tax, and whether
France’s DST diverged from norms
reflected in the U.S. and international
tax system. Witnesses provided
testimony at an August 19, 2019 public
hearing and interested persons filed
written submissions.
Following a request by the U.S. Trade
Representative, consultations were held
with the Government of France on
November 14, 2019.
On December 2, 2019, USTR
published a comprehensive report on
France’s DST which is available at
https://ustr.gov/issue-areas/
enforcement/section-301-investigations/
section-301-frances-digital-services-tax.
On December 6, 2019, based on the
information obtained during the
investigation and the advice of the
Section 301 Committee, and as reflected
in the December 2, 2019 report on the
findings in the investigation, the U.S.
Trade Representative published a
determination that France’s DST is
unreasonable or discriminatory and
burdens or restricts U.S. commerce, and
therefore is actionable under sections
301(b) and 304(a) of the Trade Act (19
U.S.C. 2411(b) and 2414(a)). See 84 FR
66956 (December 6, 2019) (December 6,
2019 notice).
The December 6, 2019 notice
proposed that appropriate action would
include additional ad valorem duties of
up to 100 percent on products of France
to be drawn from a list of 63 tariff
subheadings of the Harmonized Tariff
Schedule of the United States (HTSUS)
included in the annex to that notice.
The December 6, 2019 notice requested
comments on the proposed action, as
well as on other potential actions,
including the imposition of fees or
restrictions on services of France.
Witnesses provided testimony at a
January 7–8, 2020 public hearing and
interested persons filed written
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
2479
comments. Transcripts from the August
2019 and January 2020 hearings are
available on the USTR website at
https://ustr.gov/issue-areas/
enforcement/section-301-investigations/
section-301-frances-digital-services-tax.
The written public submissions are
available on www.regulations.gov under
docket number USTR–2019–0009.
In a notice published on July 16,
2020, the U.S. Trade Representative
determined to impose ad valorem duties
of 25 percent on specified products of
France. See 85 FR 43292 (July 16, 2020
notice). The U.S. Trade Representative
also determined to suspend the
additional duties for up to 180 days
(that is, until January 6, 2021) to allow
additional time for bilateral and
multilateral discussions that could lead
to a satisfactory resolution of this
matter.
II. Determination To Modify Action
Section 307(a)(1) of the Trade Act
authorizes the U.S. Trade
Representative to modify or terminate
any action, subject to the specific
direction, if any, of the President with
respect to such action, that is being
taken under Section 301, if, inter alia,
the action being taken is no longer
appropriate. Pursuant to sections
301(b)–(c) and 307(a) of the Trade Act
(19 U.S.C. 2417(a)), the U.S. Trade
Representative has determined that the
imposition of duties on the current
effective date of January 6, 2021 no
longer is appropriate.
Subsequent to the initiation of this
investigation, the U.S. Trade
Representative initiated Section 301
investigations of DSTs adopted or under
consideration by Austria, Brazil, the
Czech Republic, the European Union,
India, Indonesia, Italy, Spain, Turkey,
and the United Kingdom. See 85 FR
34709 (June 5, 2020). These
investigations involve similar DST
measures, either in effect or under
consideration, in ten additional
jurisdictions. Given that these DST
investigations are ongoing and have not
yet reached any determinations on
what, if any, trade action should be
taken, the U.S. Trade Representative has
determined that it is appropriate to
suspend the action in the France DST
investigation indefinitely.
In making this determination, the U.S.
Trade Representative considered the
public comments submitted in the
investigation, as well as advice of
advisory committees.
To give effect to the U.S. Trade
Representative’s determination, the
additional duties set out in Annex A of
the July 16, 2020 notice are suspended
indefinitely, as of the scheduled
E:\FR\FM\12JAN1.SGM
12JAN1
2480
Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
effective date of 12:01 a.m. eastern
standard time on January 6, 2021. The
U.S. Trade Representative will continue
to monitor the developments in the
France DST investigation and the
additional DST investigations in
considering the trade action in this
investigation. If a further modification
to the action is appropriate, the U.S.
Trade Representative will consider the
comments and testimony previously
provided.
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2021–00425 Filed 1–11–21; 8:45 am]
BILLING CODE 3290–F1–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Notice of Determination Pursuant to
Section 301: Turkey’s Digital Services
Tax
Office of the United States
Trade Representative (USTR).
ACTION: Notice.
AGENCY:
The U.S. Trade
Representative has determined that
Turkey’s Digital Services Tax (DST) is
unreasonable or discriminatory and
burdens or restricts U.S. commerce and
thus is actionable under Section 301.
FOR FURTHER INFORMATION CONTACT: For
questions concerning the investigation,
please contact Thomas Au or Patrick
Childress, Assistant General Counsels at
(202) 395–0380 and (202) 395–9531,
respectively, Robert Tanner, Director,
Services and Investment at (202) 395–
6125, or Michael Rogers, Director,
Europe and the Middle East at (202)
395–2684.
SUPPLEMENTARY INFORMATION:
SUMMARY:
khammond on DSKJM1Z7X2PROD with NOTICES
I. Turkey’s DST
Based on information obtained during
the investigation, USTR has prepared a
comprehensive report on Turkey’s DST
(Turkey DST Report). The Turkey
Report, which is posted on the USTR
website at https://ustr.gov/issue-areas/
enforcement/section-301-investigations/
section-301-digital-services-taxes,
includes a full description of Turkey’s
DST. To summarize, Turkey adopted the
operative form of its DST on December
7, 2019. The DST applies to companies
that, during the previous calendar year,
generated Ö750 million or more in
worldwide revenues and TRY 20
million or more in revenues deriving
from the provision of digital services in
Turkey. The tax applies as of March 1,
2020.
VerDate Sep<11>2014
17:09 Jan 11, 2021
Jkt 253001
II. Proceedings in the Investigation
On June 2, 2020, the U.S. Trade
Representative initiated an investigation
of Turkey’s DST pursuant to section
302(b)(1)(A) of the Trade Act of 1974, as
amended (Trade Act). 85 FR 34709 (June
5, 2020) (notice of initiation). The notice
of initiation solicited written comments
on, inter alia, the following aspects of
Turkey’s DST: discrimination against
U.S. companies and unreasonableness
as tax policy. With respect to
unreasonable tax policy, USTR solicited
comments on, inter alia, whether the
DST diverges from principles reflected
in the U.S. and international tax
systems, including extraterritorial
application and taxing revenue rather
than income.
Interested persons filed over 380
written submissions in response to the
notice of initiation. The public
submissions are available on
www.regulations.gov in docket number
USTR–2020–0022.
Under Section 303 of the Trade Act,
the U.S. Trade Representative requested
consultations with the Government of
Turkey regarding the issues involved in
the investigation. Consultations were
held on September 29, 2020.
As noted, based on information
obtained during the investigation, USTR
has prepared and published the Turkey
DST Report, which includes a
comprehensive discussion on whether
the acts, policies, and practices under
investigation are actionable under
Section 301(b) of the Trade Act. The
Turkey DST Report supports findings
that Turkey’s DST is unreasonable or
discriminatory and burdens or restricts
U.S. commerce.
III. Determination on the Act, Policy, or
Practice Under Investigation
Based on the information obtained
during the investigation, and taking
account of public comments and the
advice of the Section 301 Committee
and advisory committees, the U.S. Trade
Representative has made the following
determination under sections 301(b) and
304(a) of the Trade Act (19 U.S.C.
2411(b) and 2414(a)): The act, policy, or
practice covered in the investigation,
namely Turkey’s DST, is unreasonable
or discriminatory and burdens or
restricts U.S. commerce, and thus is
actionable under section 301(b) of the
Trade Act. In particular:
1. Turkey’s DST, by its structure and
operation, discriminates against U.S.
digital companies, including due to the
selection of covered services and the
revenue thresholds.
2. Turkey’s DST is unreasonable
because it is inconsistent with
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
principles of international taxation,
including due to its application to
revenue rather than income,
extraterritorial application, and failure
to provide tax certainty.
3. Turkey’s DST burdens or restricts
U.S. commerce.
IV. Further Proceedings
Sections 301(b) and 304(a)(1)(B) of the
Trade Act provides that if the U.S.
Trade Representative determines that an
act, policy, or practice of a foreign
country is unreasonable or
discriminatory and burdens or restricts
United States commerce, the U.S. Trade
Representative shall determine what
action, if any, to take under Section
301(b). These matters will be addressed
in subsequent proceedings under
Section 301.
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2021–00364 Filed 1–11–21; 8:45 am]
BILLING CODE 3290–F0–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Notice of Final Federal Agency Actions
on Proposed Highway in California
Federal Highway
Administration (FHWA), Department of
Transportation (DOT).
ACTION: Notice of limitation on claims
for judicial review of actions by the
California Department of Transportation
(Caltrans).
AGENCY:
The FHWA, on behalf of
Caltrans, is issuing this notice to
announce actions taken by Caltrans that
are final. The actions relate to a
proposed highway project, the Santa
Maria River Bridge Replacement Project
on State Route 1 at postmile 0.0, in San
Luis Obispo County, and north of the
City of Guadalupe, in Santa Barbara
County, State of California. Those
actions grant licenses, permits, and
approvals for the project.
DATES: By this notice, the FHWA, on
behalf of Caltrans, is advising the public
of final agency actions subject to 23
U.S.C. 139(l)(1). A claim seeking
judicial review of the Federal agency
actions on the highway project will be
barred unless the claim is filed on or
before June 11, 2021. If the Federal law
that authorizes judicial review of a
claim provides a time period of less
than 150 days for filing such claim, then
that shorter time period still applies.
FOR FURTHER INFORMATION CONTACT: For
Caltrans: Matt Fowler, Branch Chief,
SUMMARY:
E:\FR\FM\12JAN1.SGM
12JAN1
Agencies
[Federal Register Volume 86, Number 7 (Tuesday, January 12, 2021)]
[Notices]
[Pages 2479-2480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00425]
-----------------------------------------------------------------------
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Number USTR-2019-0009]
Notice of Modification of Section 301 Action: Investigation of
France's Digital Services Tax
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The U.S. Trade Representative has determined to modify the
action being taken in this investigation by suspending, until further
notice, the additional duties on products of France scheduled to take
effect on January 6, 2021.
DATES: The additional duties on products of France are suspended
indefinitely, as of the previously scheduled effective date of 12:01
a.m. eastern standard time on January 6, 2021.
FOR FURTHER INFORMATION CONTACT: For questions concerning the
investigation, please contact Thomas Au or Patrick Childress, Assistant
General Counsels at (202) 395-0380 and (202) 385-9531, respectively,
Robert Tanner, Director, Services and Investment at (202) 395-6125, or
Michael Rogers, Director for Europe at (202) 395-2684. For specific
questions on customs classification or implementation of additional
duties on products, contact [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On July 10, 2019, the U.S. Trade Representative initiated the
investigation of France's digital services tax (DST) pursuant to
section 302(b)(1)(A) of the Trade Act of 1974, as amended (Trade Act).
See 84 FR 34042 (July 16, 2019) (July 16, 2019 notice). The July 16,
2019 notice invited public comment on France's DST, including whether
the tax would discriminate against U.S. companies, the retroactive
application of the new tax, and whether France's DST diverged from
norms reflected in the U.S. and international tax system. Witnesses
provided testimony at an August 19, 2019 public hearing and interested
persons filed written submissions.
Following a request by the U.S. Trade Representative, consultations
were held with the Government of France on November 14, 2019.
On December 2, 2019, USTR published a comprehensive report on
France's DST which is available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-frances-digital-services-tax. On December 6, 2019, based on the information obtained
during the investigation and the advice of the Section 301 Committee,
and as reflected in the December 2, 2019 report on the findings in the
investigation, the U.S. Trade Representative published a determination
that France's DST is unreasonable or discriminatory and burdens or
restricts U.S. commerce, and therefore is actionable under sections
301(b) and 304(a) of the Trade Act (19 U.S.C. 2411(b) and 2414(a)). See
84 FR 66956 (December 6, 2019) (December 6, 2019 notice).
The December 6, 2019 notice proposed that appropriate action would
include additional ad valorem duties of up to 100 percent on products
of France to be drawn from a list of 63 tariff subheadings of the
Harmonized Tariff Schedule of the United States (HTSUS) included in the
annex to that notice. The December 6, 2019 notice requested comments on
the proposed action, as well as on other potential actions, including
the imposition of fees or restrictions on services of France. Witnesses
provided testimony at a January 7-8, 2020 public hearing and interested
persons filed written comments. Transcripts from the August 2019 and
January 2020 hearings are available on the USTR website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-frances-digital-services-tax. The written public submissions are
available on www.regulations.gov under docket number USTR-2019-0009.
In a notice published on July 16, 2020, the U.S. Trade
Representative determined to impose ad valorem duties of 25 percent on
specified products of France. See 85 FR 43292 (July 16, 2020 notice).
The U.S. Trade Representative also determined to suspend the additional
duties for up to 180 days (that is, until January 6, 2021) to allow
additional time for bilateral and multilateral discussions that could
lead to a satisfactory resolution of this matter.
II. Determination To Modify Action
Section 307(a)(1) of the Trade Act authorizes the U.S. Trade
Representative to modify or terminate any action, subject to the
specific direction, if any, of the President with respect to such
action, that is being taken under Section 301, if, inter alia, the
action being taken is no longer appropriate. Pursuant to sections
301(b)-(c) and 307(a) of the Trade Act (19 U.S.C. 2417(a)), the U.S.
Trade Representative has determined that the imposition of duties on
the current effective date of January 6, 2021 no longer is appropriate.
Subsequent to the initiation of this investigation, the U.S. Trade
Representative initiated Section 301 investigations of DSTs adopted or
under consideration by Austria, Brazil, the Czech Republic, the
European Union, India, Indonesia, Italy, Spain, Turkey, and the United
Kingdom. See 85 FR 34709 (June 5, 2020). These investigations involve
similar DST measures, either in effect or under consideration, in ten
additional jurisdictions. Given that these DST investigations are
ongoing and have not yet reached any determinations on what, if any,
trade action should be taken, the U.S. Trade Representative has
determined that it is appropriate to suspend the action in the France
DST investigation indefinitely.
In making this determination, the U.S. Trade Representative
considered the public comments submitted in the investigation, as well
as advice of advisory committees.
To give effect to the U.S. Trade Representative's determination,
the additional duties set out in Annex A of the July 16, 2020 notice
are suspended indefinitely, as of the scheduled
[[Page 2480]]
effective date of 12:01 a.m. eastern standard time on January 6, 2021.
The U.S. Trade Representative will continue to monitor the developments
in the France DST investigation and the additional DST investigations
in considering the trade action in this investigation. If a further
modification to the action is appropriate, the U.S. Trade
Representative will consider the comments and testimony previously
provided.
Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-00425 Filed 1-11-21; 8:45 am]
BILLING CODE 3290-F1-P