[Federal Register Volume 76, Number 44 (Monday, March 7, 2011)]
[Notices]
[Pages 12401-12403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5121]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Dispute No. WTO/DS413]


WTO Dispute Settlement Proceeding Regarding China--Certain 
Measures Affecting Electronic Payment Services

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: The Office of the United States Trade Representative 
(``USTR'') is providing notice that on February 11, 2011, the United 
States requested establishment of a dispute settlement panel under the 
Marrakesh Agreement Establishing the World Trade Organization (``WTO 
Agreement'') with the People's Republic of China (``China'') concerning 
certain restrictions and requirements maintained by China affecting 
electronic payment services for payment card transactions and the 
suppliers of those services. That request may be found at http://www.wto.org contained in a document designated as WT/DS413/2. USTR 
invites written comments from the public concerning the issues raised 
in this dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before May 2, 2011, to be assured of timely 
consideration by USTR.

ADDRESSES: Public comments should be submitted electronically to http://www.regulations.gov, docket number USTR-2010-026. If you are unable to 
provide submissions to http://www.regulations.gov, please contact Sandy 
McKinzy at (202) 395-9483 to arrange for an alternative method of 
transmission. If (as explained below) the comment contains confidential 
information, then the comment should be submitted by fax only to Sandy 
McKinzy at (202) 395-3640.

FOR FURTHER INFORMATION CONTACT: Frank J. Schweitzer, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-3150.

SUPPLEMENTARY INFORMATION: Section 127(b)(1) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C. 3537(b)(1)) requires that notice and 
opportunity for comment be provided after the United States submits or 
receives a request for establishment of a WTO dispute settlement panel. 
Consistent with this obligation, USTR is providing notice that it has 
requested a panel pursuant to the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes (``DSU''). Once it is 
established, the panel will hold its meetings in Geneva, Switzerland, 
and would be expected to issue a report on its findings and 
recommendations within nine months of its establishment.

Major Issues Raised by the United States

    On September 15, 2010, the United States requested consultations 
with China concerning issues relating to certain restrictions and 
requirements maintained by China affecting electronic payment services 
for payment card transactions and the suppliers of those services. 
Electronic payment services involve the services through which 
transactions involving credit card, debit card, charge card, check 
card, automated teller machine (``ATM'') card, prepaid card, or other 
similar card or money transmission product, are processed and through 
which transfers of funds between institutions participating in the 
transactions are managed and facilitated. In the financial services 
sector, as set out in China's Schedule of Specific Commitments on 
Services annexed to the Protocol on the Accession of the People's 
Republic of China, China undertook both market access and national 
treatment commitments with respect to these services.
    Despite its GATS commitments, China imposes market access 
restrictions and requirements on service suppliers of other Members 
seeking to supply electronic payment services in China. China UnionPay 
(``CUP''), a Chinese entity, is the only entity that China permits to 
supply electronic payment services for payment card transactions 
denominated and paid in renminbi (``RMB'') in China. China also 
requires the handling by CUP of all RMB transactions in Macao or Hong 
Kong using payment cards issued in Mainland China, as well as any RMB 
transactions in Mainland China using RMB payment cards issued in Hong 
Kong, China or Macao, China.
    In addition, China requires all payment card processing devices at 
merchant locations, all ATMs, and all point-of-sale (``POS'') terminals 
in China to be compatible with CUP's system and capable of accepting 
CUP payment cards. China also requires that all acquiring institutions 
post the CUP logo and be capable of accepting all payment cards bearing 
the CUP logo. China further requires that all payment cards, including 
``dual currency'' cards, issued in China capable of being used for 
transactions denominated and paid in RMB bear the CUP logo. These 
measures do not impose similar requirements regarding non-CUP payment 
cards or to transactions using non-CUP payment cards. China also 
requires that all inter-bank transactions involving payment cards be 
handled through CUP. China prohibits the use of non-CUP payment cards 
for cross-region or inter-bank transactions.
    The United States considers that these measures are inconsistent 
with China's obligations under GATS Article XVI:1 to accord services 
and services suppliers of any other Member treatment no less favorable 
than that provided for in

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China's Schedule and that China is maintaining or adopting measures set 
out in Article XVI:2. The United States also considers that these 
measures are inconsistent with China's obligations under GATS Article 
XVII to accord to services and service suppliers of any other Member 
treatment no less favorable than that it accords to its own like 
services and service suppliers.
    In its request for the establishment of a panel, the United States 
identified the following instruments through which the United States 
understands that China maintains these measures:
    <bullet> Measures for the Administration of Bank Card Business by 
the People's Bank of China (Yinfa [1999] 17), issued on 27 January 
1999;
    <bullet> Circular of the People's Bank of China on Promulgation of 
Opinions on Implementation of Joint Work in Bank Card Interoperability 
in 2001 (Yinfa [2001] 37) issued on 19 February 2001;
    <bullet> Circular on Uniform Use of CUP Logo and its Holographic 
Label for Anti-counterfeiting by the People's Bank of China (Yinfa, 
[2001] 57), issued on 13 March 2001;
    <bullet> Notice of Circulating the Bank Card Connection Business 
Standard by the People's Bank of China (Yinfa [2001] 76), issued 29 
March 2001, including but not limited to the Appendix, Business 
Practices for the Interoperable Service of Bank Cards
    <bullet> Opinions on Bank Card Interoperability Related Work in 
2002 by the People's Bank of China (Yinfa [2002] 94), issued on 5 April 
2002;
    <bullet> Circular regarding Issues concerning Bank Card 
Interoperability Related Work by the People's Bank of China (Yinfa 
[2002] 272), issued on 29 August 2002;
    <bullet> Circular on Further Improving Bank Card Interoperability 
Related Work by the People's Bank of China (Yinfa [2003] 129), issued 
on 2 July 2003;
    <bullet> Announcement of Clearing Arrangements Provided by Banks in 
relation to Individuals' Deposits, Exchanges, Bank Card and Remittance 
in RMB in Hong Kong (PBOC Announcement [2003] 16), issued on 19 
November 2003;
    <bullet> Circular on Regulating the Administration of Foreign 
Currency Bank Cards by the State Administration of Foreign Exchange 
Circular (Huifa [2004] 66), issued on 30 June 2004;
    <bullet> Announcement of Clearing Arrangements Provided by Banks in 
relation to Individuals' Deposits, Exchanges, Bank Cards and Remittance 
in RMB in Macao (PBOC Announcement [2004] 8), issued on 3 August 2004;
    <bullet> Notice of the People's Bank of China concerning Relevant 
Issues on Accepting and Using Renminbi Bank Cards in Border Areas 
(Yinfa [2004] 219), issued on 21 September 2004;
    <bullet> Circular regarding Issues concerning Individual RMB 
Business Handled by Banks in Mainland China and Banks in Hong Kong and 
Macao by the People's Bank of China (Yinfa [2004] 254), issued on 28 
October 2004;
    <bullet> Some Opinions of the People's Bank of China, the National 
Reform and Development Commission, the Ministry of Public Security, the 
Ministry of Finance, the Ministry of Information Industry, the Ministry 
of Commerce, the Station Administration of Taxation, China Banking 
Regulatory Commission and the State Administration of Foreign Exchange 
on Promoting the Development of Bank Card Industry Some Opinions of the 
People's Bank of China, the National Reform and Development Commission, 
the Ministry of Public Security, the Ministry of Finance, the Ministry 
of Information Industry, the Ministry of Commerce, the Station 
Administration of Taxation, China Banking Regulatory Commission and the 
State Administration of Foreign Exchange on Promoting the Development 
of Bank Card Industry (Yinfa [2005] 103), issued 24 April 2005;
    <bullet> Guiding Opinions of the People's Bank of China on 
Regulating and Promoting the Development of Bank Card Acceptance Market 
(Yinfa [2005] 153), issued on 16 June 2005;
    <bullet> Notice of the People's Bank of China on the Relevant 
Issues concerning Strengthening the Administration of Oversea Business 
Acceptance of Bank Cards (Yinfa [2007] 273), issued on 6 August 2007;
    <bullet> Notice of the China Banking Regulatory Commission on the 
Issues Concerning Wholly Foreign-funded and Chinese-foreign Equity 
Joint Banks in Conducting the Bank Card Business (Yin Jian Fa [2007] 
49), issued 6 June 2007;
    <bullet> Notice of the People's Bank of China, the China Banking 
Regulatory Commission, the Ministry of Public Security and the State 
Administration for Industry and Commerce on Strengthening the Safety 
Management of Bank Cards and Preventing and Combating Bank Card Crimes 
(Yinfa [2009] 142), issued 27 April 2009;
    <bullet> The Opinions of the Standing Office of the People's Bank 
of China on the Circular on Strengthening the Safety Management of 
Bankcards and Preventing and Fighting Crimes in Bank Cards by the 
People's Bank of China, the China Banking Regulatory Commission, the 
Ministry of Public Security and the State Administration for Industry 
and Commerce (Yinfa [2009] 149), issued 1 August 2009;
    <bullet> Notice of the State Administration of Foreign Exchange on 
the Management of Foreign Currency Bank Cards [2010] 53, issued 11 
October 2010; and
    <bullet> The ``business specifications'' and ``technical 
standards'' that are identified in the instruments above, including in 
Document No. 17, Document No. 57, Document No. 129, and Document No. 
49;
    <bullet> As well as any amendments, or any related implementing 
measures, as of the date of the panel request.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Persons may submit public 
comments electronically to http://www.regulations.gov, docket number 
USTR-2010-0026. If you are unable to provide submissions by http://www.regulations.gov, please contact Sandy McKinzy at (202) 395-9483 to 
arrange for an alternative method of transmission.
    To submit comments via www.regulations.gov, enter docket number 
USTR-2010-0026 on the home page and click ``search''. The site will 
provide a search-results page listing all documents associated with 
this docket. Find a reference to this notice by selecting ``Notice'' 
under ``Document Type'' on the left side of the search-results page, 
and click on the link entitled ``Submit a Comment.'' (For further 
information on using the http://www.regulations.gov Web site, please 
consult the resources provided on the Web site by clicking on ``How to 
Use This Site'' on the left side of the home page.)
    The www.regulations.gov site provides the option of providing 
comments by filling in a ``Type Comment and Upload File'' field, or by 
attaching a document. It is expected that most comments will be 
provided in an attached document. If a document is attached, it is 
sufficient to type ``See attached'' in the ``Type Comment and Upload 
File'' field.
    A person requesting that information contained in a comment 
submitted by that person be treated as confidential business 
information must certify that such information is business confidential 
and would not customarily be released to the public by the submitter. 
Confidential business information must be clearly designated as such 
and the submission must be marked ``BUSINESS CONFIDENTIAL'' at

[[Page 12403]]

the top and bottom of the cover page and each succeeding page. Any 
comment containing business confidential information must be submitted 
by fax to Sandy McKinzy at (202) 395-3640. A non-confidential summary 
of the confidential information must be submitted to http://www.regulations.gov. The non-confidential summary will be placed in the 
docket and open to public inspection.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by USTR to be 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. 2155(g)(2)). If the submitter believes that information 
or advice may qualify as such, the submitter--
    (1) Must clearly so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
at the top and bottom of the cover page and each succeeding page; and
    (3) Must provide a non-confidential summary of the information or 
advice.
    Any comment containing confidential information must be submitted 
by fax to Sandy McKinzy at (202) 395-3640. A non-confidential summary 
of the confidential information must be submitted to http://www.regulations.gov. The non-confidential summary will be placed in the 
docket and open to public inspection.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a docket on this dispute settlement proceeding accessible 
to the public. The public file will include non-confidential comments 
received by USTR from the public with respect to the dispute. If a 
dispute settlement panel is convened or in the event of an appeal from 
such a panel, the U.S. submissions, any non-confidential submissions, 
or non-confidential summaries of submissions, received from other 
participants in the dispute, will be made available to the public on 
USTR's Web site at www.ustr.gov, and the report of the panel, and, if 
applicable, the report of the Appellate Body, will be available on the 
Web site of the World Trade Organization, http://www.wto.org. Comments 
open to public inspection may be viewed on the http://www.regulations.gov Web site.

Bradford Ward,
Acting Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 2011-5121 Filed 3-4-11; 8:45 am]
BILLING CODE 3190-W1-P