Termination of Section 301 Digital Services Tax Investigations of Brazil, the Czech Republic, the European Union, and Indonesia, 16828-16829 [2021-06612]

Download as PDF 16828 Federal Register / Vol. 86, No. 60 / Wednesday, March 31, 2021 / Notices 7114.20.00 ............... 7116.20.05 ............... 7116.20.15 ............... 7116.20.30 ............... 7116.20.35 7116.20.40 ............... ............... 7116.20.50 ............... 7410.21.30 ............... 7504.00.00 9401.69.20 9401.69.40 9401.69.60 9401.69.80 9403.50.40 9403.50.90 9403.83.00 9504.30.00 Base metal clad w/gold mixed link necklaces and neck chains Base metal clad w/precious metal articles of jewelry and parts thereof, nesoi Goldsmiths' or silversmiths' wares of base metal clad with precious metal Jewelry articles of precious or semiprecious stones, valued not over $40 per piece Jewelry articles of precious or semiprecious stones, valued over $40 per piece Semiprecious stones (except rock crystal), graded and strung temporarily for convenience of transport Semiprecious stone (except rock crystal) figurines Semiprecious stone (except rock crystal) articles (other than jewelry and figurines) Precious stone articles, nesoi Refined copper, clad laminates, w/thickness of 0.15 mm or less, backed Nickel, powders and flakes Seats nesoi, of bent-wood Chairs nesoi, w/teak frames, not upholstered Chairs nesoi, w/wooden frames (o/than teak), not upholstered Seats (o/than chairs) nesoi, w/wooden frames, not upholstered Furniture (o/than seats) of bentwood nesoi, of a kind used in the bedroom Furniture (o/than seats) of wood (o/than bentwood), of a kind used in the bedroom & not designed for motor vehicle use Rattan furniture and parts Coin- or token-operated games for arcade, table or parlor (o/than bowling alley equipment) nesoi and parts and accessories thereof Indonesia because these jurisdictions either have not adopted or not implemented a DST during the period of investigation. [FR Doc. 2021–06627 Filed 3–30–21; 8:45 am] BILLING CODE 3290–F1–C OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Termination of Section 301 Digital Services Tax Investigations of Brazil, the Czech Republic, the European Union, and Indonesia Office of the United States Trade Representative (USTR). ACTION: Notice. jbell on DSKJLSW7X2PROD with NOTICES AGENCY: The U.S. Trade Representative is terminating the Section 301 investigations of Digital Services Taxes (DSTs) under consideration by Brazil, the Czech Republic, the European Union, and SUMMARY: VerDate Sep<11>2014 18:54 Mar 30, 2021 Jkt 253001 For questions concerning the investigations, please contact Benjamin Allen or Patrick Childress, Assistant General Counsels at (202) 395–9439 and (202) 395–9531, respectively; or Robert Tanner, Director, Services and Investment at (202) 395–6125. For jurisdiction-specific questions, please contact: Courtney Smothers, Deputy Assistant U.S. Trade Representative for Latin America at (202) 395–7657 (for Brazil); Michael Rogers, Director, Europe and the Middle East at (202) 395–2684 (for the Czech Republic and the EU); or Bart Thanhauser, Director for FOR FURTHER INFORMATION CONTACT: PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 Southeast Asia and the Pacific at (202) 395–4088 (for Indonesia). DATES: The Section 301 investigations of DSTs under consideration by Brazil, the Czech Republic, the European Union, and Indonesia are terminated as of March 26, 2021. SUPPLEMENTARY INFORMATION: On June 2, 2020, the U.S. Trade Representative initiated investigations pursuant to section 302(b)(1)(A) of the Trade Act of 1974, as amended, of DSTs under consideration by Brazil, the Czech Republic, the European Union, and Indonesia. 85 FR 34709 (June 5, 2020). On January 13, 2021, USTR issued a status update on these four investigations: https://ustr.gov/sites/ default/files/files/Press/Releases/Status Update301InvestigationsBEUIndCR.pdf. The status update summarizes the DSTs E:\FR\FM\31MRN1.SGM 31MRN1 EN31MR21.004</GPH> 7113.20.25 ............... 7113.20.50 ............... Federal Register / Vol. 86, No. 60 / Wednesday, March 31, 2021 / Notices Greta Peisch, General Counsel, Office of the United States Trade Representative. May 4, 2021 at 9:30 a.m.: Virtual hearing on the United Kingdom DST proposed action. May 10, 2021: To be assured of consideration, submit multijurisdictional hearing rebuttal comments by this date. May 11, 2021: To be assured of consideration, submit the United Kingdom DST hearing rebuttal comments by this date. ADDRESSES: Submit documents in response to this notice, including written comments and hearing appearance requests, through the online USTR portal: https:// comments.ustr.gov/s/. FOR FURTHER INFORMATION CONTACT: For questions concerning the investigation, please contact Ben Allen or Patrick Childress, Assistant General Counsels at (202) 395–9439 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. For issues with on-line submissions, please contact the USTR Section 301 line at (202) 395–5725. SUPPLEMENTARY INFORMATION: [FR Doc. 2021–06612 Filed 3–30–21; 8:45 am] I. Proceedings in the Investigation Under section 303 of the Trade Act, the U.S. Trade Representative requested consultations with the government of the United Kingdom regarding the issues involved in the investigation. Consultations were held on December 4, 2020. Based on information obtained during the investigation, USTR prepared a comprehensive report on the United Kingdom’s DST (United Kingdom DST Report). The United Kingdom DST Report is posted on the USTR website at https://ustr.gov/issue-areas/ enforcement/section-301-investigations/ section-301-digital-services-taxes. The report includes a full description of the United Kingdom’s DST, and supports findings that the United Kingdom’s DST is unreasonable and discriminatory and burdens or restricts U.S commerce. On January 14, 2021, based on the information obtained during the investigation and the advice of the Section 301 Committee, the U.S. Trade Representative determined that the United Kingdom’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 86 FR 6406 (January 21, 2021). BILLING CODE 3290–F1–P The United Kingdom’s has adopted a DST that applies a two percent tax on the revenues of certain search engines, social media platforms and online marketplaces. The United Kingdom’s DST applies only to companies with digital services revenues exceeding £500 million and United Kingdom digital services revenues exceeding £25 million. On June 2, 2020, the U.S. Trade Representative initiated an investigation of the United Kingdom’s DST pursuant to section 302(b)(1)(A) of the Trade Act of 1974, as amended (Trade Act). See 85 FR 34709 (June 5, 2020) (notice of initiation). The notice of initiation solicited written comments on, inter alia, the following aspects of the United Kingdom’s DST: Discrimination against U.S. companies; retroactivity; and possibly unreasonable tax policy. With respect to tax policy, USTR solicited comments on, inter alia, whether the DST diverged from principles reflected in the U.S. and international tax systems including extraterritoriality; taxing revenue not income; and a purpose of penalizing particular technology companies for their commercial success. Interested persons filed over 380 written submissions in response. The public submissions are available on www.regulations.gov in docket number USTR–2020–0022. II. Proposed Action Section 301(b) provides that upon determining that the acts, policies, and practices under investigation are actionable and that action is appropriate, the U.S. Trade Representative shall take all appropriate and feasible action authorized under section 301(c), subject to the specific direction, if any, of the President regarding such action, and all other appropriate and feasible action within the power of the President that the President may direct the U.S. Trade Representative to take under section 301(b), to obtain the elimination of that act, policy, or practice. Section 301(c)(1)(B) of the Trade Act authorizes the U.S. Trade Representative to impose duties on the goods of the foreign country subject to the investigation. Pursuant to sections 301(b) and (c), USTR proposes that the U.S. Trade Representative should determine that action is appropriate and that appropriate action would include the imposition of additional ad valorem tariffs on certain products of the United Kingdom. In particular, USTR proposes to impose additional tariffs of up to 25 percent ad valorem on an aggregate level of trade that would collect duties on goods of the United Kingdom in the range of the amount of the DST that the under consideration, outlines USTR’s preliminary concerns with each of the proposed DSTs, and notes that USTR would continue to monitor the status. As of March 25, 2021, Brazil, the Czech Republic, and the European Union have not adopted DSTs, and Indonesia has not implemented a DST. Under the Section 301 statute, determinations must be made within one year of initiation, or in this case by June 2, 2021. Even if one or more of these jurisdictions were to adopt or implement a DST prior to June 2, USTR would not have sufficient time to determine whether the DST was actionable under Section 301 and, if so, what action, if any, to take to obtain the elimination of the measure. Accordingly, the U.S. Trade Representative has determined that it is appropriate to terminate these investigations at this time. USTR will continue to monitor the status of any proposed or adopted DST in these four jurisdictions, and may, if appropriate, initiate one or more new Section 301 investigations. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket Number USTR–2021–0007] Proposed Action in Section 301 Investigation of the United Kingdom’s Digital Services Tax Office of the United States Trade Representative. ACTION: Request for comments and notice of public hearing. AGENCY: The Office of the United States Trade Representative (USTR) requests written comments regarding a potential trade action in connection with the Section 301 investigation of the United Kingdom’s Digital Services Tax (DST). USTR also will convene virtual public hearings and accept rebuttal comments in relation to the potential action. SUMMARY: DATES: jbell on DSKJLSW7X2PROD with NOTICES 16829 April 21, 2021: To be assured of consideration, submit requests to appear at a hearing, along with a summary of the testimony, by this date. April 30, 2021: To be assured of consideration, submit written comments by this date. May 3, 2021: Multi-jurisdictional virtual hearing on proposed actions. VerDate Sep<11>2014 18:54 Mar 30, 2021 Jkt 253001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 E:\FR\FM\31MRN1.SGM 31MRN1

Agencies

[Federal Register Volume 86, Number 60 (Wednesday, March 31, 2021)]
[Notices]
[Pages 16828-16829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06612]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Termination of Section 301 Digital Services Tax Investigations of 
Brazil, the Czech Republic, the European Union, and Indonesia

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice.

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SUMMARY: The U.S. Trade Representative is terminating the Section 301 
investigations of Digital Services Taxes (DSTs) under consideration by 
Brazil, the Czech Republic, the European Union, and Indonesia because 
these jurisdictions either have not adopted or not implemented a DST 
during the period of investigation.

FOR FURTHER INFORMATION CONTACT: For questions concerning the 
investigations, please contact Benjamin Allen or Patrick Childress, 
Assistant General Counsels at (202) 395-9439 and (202) 395-9531, 
respectively; or Robert Tanner, Director, Services and Investment at 
(202) 395-6125. For jurisdiction-specific questions, please contact: 
Courtney Smothers, Deputy Assistant U.S. Trade Representative for Latin 
America at (202) 395-7657 (for Brazil); Michael Rogers, Director, 
Europe and the Middle East at (202) 395-2684 (for the Czech Republic 
and the EU); or Bart Thanhauser, Director for Southeast Asia and the 
Pacific at (202) 395-4088 (for Indonesia).

DATES: The Section 301 investigations of DSTs under consideration by 
Brazil, the Czech Republic, the European Union, and Indonesia are 
terminated as of March 26, 2021.

SUPPLEMENTARY INFORMATION: On June 2, 2020, the U.S. Trade 
Representative initiated investigations pursuant to section 
302(b)(1)(A) of the Trade Act of 1974, as amended, of DSTs under 
consideration by Brazil, the Czech Republic, the European Union, and 
Indonesia. 85 FR 34709 (June 5, 2020).
    On January 13, 2021, USTR issued a status update on these four 
investigations: https://ustr.gov/sites/default/files/files/Press/Releases/StatusUpdate301InvestigationsBEUIndCR.pdf. The status update 
summarizes the DSTs

[[Page 16829]]

under consideration, outlines USTR's preliminary concerns with each of 
the proposed DSTs, and notes that USTR would continue to monitor the 
status.
    As of March 25, 2021, Brazil, the Czech Republic, and the European 
Union have not adopted DSTs, and Indonesia has not implemented a DST. 
Under the Section 301 statute, determinations must be made within one 
year of initiation, or in this case by June 2, 2021. Even if one or 
more of these jurisdictions were to adopt or implement a DST prior to 
June 2, USTR would not have sufficient time to determine whether the 
DST was actionable under Section 301 and, if so, what action, if any, 
to take to obtain the elimination of the measure.
    Accordingly, the U.S. Trade Representative has determined that it 
is appropriate to terminate these investigations at this time. USTR 
will continue to monitor the status of any proposed or adopted DST in 
these four jurisdictions, and may, if appropriate, initiate one or more 
new Section 301 investigations.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-06612 Filed 3-30-21; 8:45 am]
BILLING CODE 3290-F1-P