WORLD TRADE
ORGANIZATIONWT/DS165/1
5 March 1999
(99-0880)
Original:  English
UNITED  STATES - IMPORT MEASURES ON CERTAIN PRODUCTS FROM THE
EUROPEAN COMMUNITIES
Request for Consultations by the European Communities
The following communication, dated 4 March 1999, from the Permanent Delegation of the
European Commission to the Permanent Mission of the United States and to the Chairman of the
Dispute Settlement Body, is circulated in accordance with Article 4.8 of the DSU.
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On behalf of the European Communities, I hereby request consultations with the
United States pursuant to Article 4 of the Understanding on Rules and Procedures Governing theSettlement of Disputes (DSU) and Article XXII:1 of the General Agreement on Tariffs and
Trade 1994 (GATT 1994), with regard to the US decision, effective as of 3 March 1999, to withhold
liquidation on imports from the EC of a series of products (attached), together valued at over
$500 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.  According to information provided by the
United States Trade Representative (USTR), this measure includes administrative provisions which
foresee, among other things, the posting of a bond to cover the full potential liability.
This measure deprives 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 impose 100% duties on each individual importation, the return of
which is uncertain, depending on future US decisions.  As a result, the EC products in question areeffectively being stopped from entering the United States as of 3 March 1999.
The European Communities considers that this m easure 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, this 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.WT/DS165/1
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Given the immediate and significant trade impact of this US measure, the
European Communities requests urgent consultations under Article 4.8 of the DSU.
I look forward to receiving your reply to this request for urgent consultations and to entering
into the consultations within a period of not more than 10 days after receipt of this request.WT/DS165/1
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Annex
LIST OF PRODUCTS
The withholding of liquidation will apply to products that are both:  (1) classified in the subheadings
of the Harmonized 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, Sweden, or the United Kingdom.  Th e product descriptions that are provided below
are for the convenience of the reader 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 or combined withother materials, of polymers of propylene
42022215 Handbags, with or without shoulder straps or
without handle, with outer surface of sheeting of
plastics
42023210 Articles of a kind normally carried in the pocket
or handbag, with outer surface of 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 appliqué 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
purposes
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