WORLD TRADE
ORGANIZATIONWT/DS165/8
11 May 1999
(99-2012)
Original:  English
UNITED STATES – IMPORT MEASURES ON CERTAIN PRODUCTS
 FROM THE EUROPEAN COMMUNITIES
Request for the Establishment of a Panel by the European Communities
The following communication, dated 11 May 1999, from the Permanent Delegation of the
European Commission to the Chairman of the Disp ute Settlement Body, is circulated pursuant to
Article 6.2 of the DSU.
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I have the honour to request, on behalf of the European Communities, the establishment of a
panel pursuant to Article XXIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994)
and Articles 4 and 6 of the Dispute Settlement Unde rstanding (DSU) with respect to the US decision,
effective as of 3 March 1999, to withhold liquidation on imports from the EC of a list of products,
together valued at $520 million on an annual basis, and to impose a contingent liability for 100%
duties on each individual importation of affected products as of this date (annex 1). This measure
includes administrative provisions that foresee, among other things, the posting of a bond to cover the
full potential liability.
This measure has deprived EC imports into the US  of the products in question of the right to a
duty not in excess of the rate bound in the US Schedule. Moreover, by requiring the deposit of a bond,US Customs effectively already imposed 100% duties on each individual importation as of
3 March 1999, the return of which was uncertain, depending on future US decisions. When the US
received WTO authorisation on 19 April 1999 to suspend concessions as of that date on EC imports of
products with an annual value of only $191.4 million, a more limited list of products was selected
from the previous list (annex 2). At the same time, the US confirmed, despite the prospective natureof the WTO authorisation, the liability for 100% duty on the products on the list in annex 2 that had
entered the US for consumption with effect from 3 March 1999.
The European Communities considers that this US measure is in flagrant breach of the
following WTO provisions:
- Articles 3, 21, 22 and 23 of the DSU;- Articles I, II, VIII and XI of GATT 1994.
Through these violations of fundamental WTO rules, the US measure nullifies or impairs
benefits accruing, directly or indirectly, to the European Communities under GATT 1994. This
measure also impedes important objectives of GATT 1994 and of the WTO.
On 4 March 1999, the European Communities requested consultations with the United States
on this matter, pursuant to Article 4 DSU and Article XXII:1 of GATT 1994. This request wasWT/DS165/8
Page 2
circulated in document WT/DS165/1 of 5 March 1999. Consultations were held on 21 April 1999, the
US having refused the participation of all third parties. These consultations did not result in a
mutually agreeable solution.
The European Communities requests that the pa nel be established with standard terms of
reference.WT/DS165/8
Page 3
Annex 1
LIST OF PRODUCTS
The withholding of liquidation will apply to products that are both: (1) classified in the
subheadings of the Harmonised Tariff Schedule of the United States listed below; and (2) the product
of Austria, Belgium, Finland, France, the Federal Republic of Germany, Greece, Ireland, Italy,
Luxembourg, Portugal, Spain, Swede n, or the United Kingdom.  The product descriptions that are
provided below are for the convenience of the read er and are not intended to delimit in any way the
scope of the products that would be subject to increased duties.
HTS Number Product Description
02101900 Meat of swine, other than hams, shoulders, bellies (streaky) and cuts thereof,
salted, in brine, dried or smoked
04069057 Pecorino cheese, from sheep’s milk, in original loaves, not suitable for grating
19053000 Sweet biscuits, waffles and wafers
33073050 Bath preparations, other than bath salts
34060000 Candles, tapers and the like
39202000 Nonadhesive plates, sheets, film, foil and strip, noncellular, not reinforced o r
combined with other materials, of polymers of propylene
42022215 Handbags, with or without shoulder straps or without handle, with outer surface o f
sheeting of plastics
42023210 Articles of a kind normally carried in the pocket or handbag, with outer surface o f
reinforced or laminated plastics
48055000 Uncoated felt paper and paperboard in rolls or sheets
48192000 Folding cartons, boxes and cases of noncorrugated paper or paperboard
49119120 Lithographs on paper or paperboard, not over 0.51mm in thickness, printed not
over 20 years at time of importation
61101010 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or
crocheted, wholly of cashmere
63022190 Bed linen, not knit or crochet, printed, of cotton, not containing any embroidery,
lace, braid, edging, trimming, piping or applique work, not napped
85072080 Lead-acid storage batteries other than of a kind used for starting piston engines or
as the primary source of power for electric vehicles
85167100 Electrothermic coffee or tea makers, for domestic purposesWT/DS165/8
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Annex 2
The Harmonized Tariff Schedule of the United States (HTS) is modified by adding in
numerical sequence the following superior text and subheadings to subchapter III of chapter 99 to theHTS.  The subheadings and superior text are set forth in columnar format, and material in such
columns is inserted in the columns of the HTS designated “Heading/Subheading”, “Article
Description”, “Rates of Duty 1-General”, respectively.
“Articles the product of Austria, Belgium, Finland, France, the Federal Republic of Germany,
Greece, Ireland, Italy, Luxembourg, Portug al, Spain, Sweden, or the United Kingdom:
9903.08.04 Bath preparations, other than bath salts (provided for in subheading
3307.30.50………………………………………………………… ……………100%
9903.08.07 Handbags, whether or not with shoulder st rap, including those without handle, with
outer surface of sheeting of plastic, (provided for in subheading
4202.22.15……..………………………… ……………………………………100%
9903.08.08 Articles of a kind normally carried in the pocket or in the handbag, with outer surface
of sheeting of plastic, of reinforced or laminated plastics (provided for in subheading
4202.32.10…………………………..…… …………………………………….100%
9903.08.09 Uncoated felt paper and paperboard in rolls or sheets (provided for in subheading
4805.50)……………………….……………………… …………………………100%
9903.08.10 Folding cartons, boxes and cases, of noncorrugated paper or paperboard (provided for
in subheading
4819.20)… ……………………………………………………100%
9903.08.11 Lithographs on paper or paperboard, not over 0.51 mm in thickness, printed not over
20 years at time of importation (provided for in subheading
4911.91.20)…………………………………………………………………….100%
9903.08.13 Bed linen, other than knit or crocheted, printed, of cotton, other than containing any
embroidery, lace, braid, edging, trimming , piping or applique work, not napped
(provided for in subheading
 6302.21.90)……………………... …………………100%
9903.08.14 Lead-acid storage batteries, other than of a kind used for starting piston engines or as
the primary source of electrical power for electrically powered vehicles of subheading
8703.90 (provided for in subheading 8507.20.80)………………….100%
Articles the product of Austria, Belgium, Finland, France, the Federal Republic of Germany,
Greece, Ireland, Luxembourg, Portugal, Spain, Sweden, or the United Kingdom:
9903.08.15 Electrothermic coffee or tea makers, of a kind used for domestic purposes (provided
for in subheading 8516.71)………………………..………………………… ..100%”
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