95-28039. WTO Dispute Settlement Proceeding Concerning Japanese Taxes on Distilled Spirits

[Federal Register Volume 60, Number 219 (Tuesday, November 14, 1995)]
[Notices]
[Page 57254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28039]



=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


WTO Dispute Settlement Proceeding Concerning Japanese Taxes on 
Distilled Spirits

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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

SUMMARY: Pursuant to section 127(b)(1) of the Uruguay Round Agreements 
Act (URAA) (19 U.S.C. 3537(b)(1)), the Office of the United States 
Trade Representative (USTR) if providing notice that a dispute 
settlement panel convened under the Agreement Establishing the World 
Trade Organization (WTO), at the request of Canada, the European 
Communities and the United States, will examine Japanese taxes on 
distilled spirits. USTR also invites written comments from the public 
concerning the issues raised in the dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before November 20 in order to be assured of timely 
consideration by USTR in preparing its first written submission to the 
panel.

ADDRESSES: Comments may be submitted to the Office of the General 
Counsel, Attn: Japan Distilled Spirits Dispute, Room 223, Office of the 
U.S. Trade Representative, 600 17th Street, N.W., Washington, DC 20506.

FOR FURTHER INFORMATION CONTACT:
Amelia Porges, Associate General Counsel, Office of the General 
Counsel, Office of the U.S. Trade Representative, 600 17th Street, N.W. 
Washington, DC 20506, [phone].

SUPPLEMENTARY INFORMATION: At the request of Canada, the European 
Communities and the United States, a WTO dispute settlement panel will 
examine whether Japan's excise taxes on distilled spirits are 
consistent with Japan's obligations under Article III of the General 
Agreement on Tariffs and Trade (GATT) 1994. Norway has reserved its 
rights to intervene in the panel proceeding as an interested third 
party.
    The panel was constituted on October 30, 1995 and its members were 
agreed by the parties. The panel is expected to meet as necessary at 
the WTO headquarters in Geneva, Switzerland to examine the dispute. 
Under normal circumstances, the panel would be expected to issue a 
report detailing its findings and recommendations in six to nine 
months.

Legal Basis of Complaint

    Japan assesses different excise taxes on different types of 
distilled spirits. Whisky and brandy are taxed between four and seven 
times more heavily than shochu, a traditional Japanese distilled 
spirit. For other distilled spirits such as vodka, gin and rum, the tax 
rate is two to three times higher than the tax rate on shochu. Because 
of this preferential tax treatment for shochu, Canada, the EC and the 
United States have asserted that Japan's excise taxes on distilled 
spirits accord less favorable treatment to imported distilled spirits 
than to distilled spirits of Japanese origin, and thus are inconsistent 
with Article III of the GATT 1994.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issue raised in the dispute. The provisions of 15 CFR 
2006.13(a) and (c) (providing that comments received will be open to 
public inspection) and 2006.15 will apply to comments received. 
Comments must be in English and provided in fifteen copies. Pursuant to 
15 CFR 2006.15, confidential business information must be clearly 
market ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top 
of each page.
    Pursuant to section 127(e) of the URAA, USTR will maintain a public 
file on this dispute settlement proceeding, which will include a list 
of comments received, in the USTR Reading Room: Room 101, Office of the 
United States Trade Representative, 600 17th Street, N.W., Washington 
DC 20506. An appointment to review the docket (Docket WTO/D-3, 
``Canada/EC/United States-Japan: Japan Excise Taxes on Distilled 
Spirits''), may be made by calling Brenda Webb, [phone]. The 
USTR Reading Room is open to the public from 10 a.m. to 12 noon and 1 
p.m. to 4 p.m., Monday through Friday.
Jennifer Hillman,
General Counsel.
[FR Doc. 95-28039 Filed 11-13-95; 8:45 am]
BILLING CODE 3190-01-M