[Federal Register Volume 69, Number 159 (Friday, October 8, 2004)]
[Notices]
[Pages 60450-60452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22739]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS315]


WTO Dispute Settlement Proceeding Regarding European 
Communities--Selected Customs Matters

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 September 21, 2004, in 
accordance with the Marrakesh Agreement Establishing the World Trade 
Organization (``WTO Agreement''), the United States requested 
consultations with the European Communities regarding (a) the non-
uniform administration by the European Communities of laws, 
regulations, judicial decisions, and administrative rulings pertaining 
to the classification and valuation of products for customs purposes, 
and to requirements, restrictions or prohibitions on imports, and (b) 
the failure of the European Communities to institute judicial, arbitral 
or administrative tribunals or procedures for the purpose, inter alia, 
of the prompt review and correction of administrative action relating 
to customs matters. 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 November 8, 2004, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
<a href="/cdn-cgi/l/email-protection#dc9a8eece8e8e49ca9afa8aef2bbb3aa"><span class="__cf_email__" data-cfemail="2c6a7e1c1818146c595f585e024b435a">[email protected]</span></a>, Attn: ``European Communities--Selected Customs

[[Page 60451]]

Matters (DS315)'' in the subject line, or (ii) by fax to Sandy McKinzy, 
at (202) 395-3640, with a confirmation copy sent electronically to the 
e-mail address above.

FOR FURTHER INFORMATION CONTACT: Theodore R. Posner, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-3582.

SUPPLEMENTARY INFORMATION: Section 127(b) 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 the establishment of a WTO dispute settlement 
panel. Consistent with this obligation, but in an effort to provide 
additional opportunity for comment, USTR is providing notice that 
consultations have been requested pursuant to the WTO Understanding on 
Rules and Procedures Governing the Settlement of Disputes (``DSU''). 
That request may found at http://www.wto.org contained in a document 
designated as WT/DS315/1. If such consultations should fail to resolve 
the matter and a dispute settlement panel is established pursuant to 
the DSU, such panel, which would hold its meetings in Geneva, 
Switzerland, would be expected to issue a report on its findings and 
recommendations within six to nine months after it is established.

Major Issues Raised by the United States

    On September 21, 2004, the United States requested consultations 
with the European Communities pursuant to Articles 1 and 4 of the 
Understanding on Rules and Procedures Governing the Settlement of 
Disputes (``DSU''), and Article XXII:1 of the General Agreement on 
Tariffs and Trade 1994 (``GATT 1994'') regarding:

    (a) The non-uniform administration by the European Communities 
of laws, regulations, judicial decisions and administrative rulings 
pertaining to the classification and valuation of products for 
customs purposes, and to requirements, restrictions or prohibitions 
on imports, and
    (b) The failure of the European Communities to institute 
judicial, arbitral or administrative tribunals or procedures for the 
purpose, inter alia, of the prompt review and correction of 
administrative action relating to customs matters.

    The principal law-making organs of the European Communities, the 
Council and the Commission, over time have adopted certain measures 
pertaining to the classification and valuation of imported goods for 
customs purposes, as well as procedures for the entry and release of 
goods into the European Communities. These measures include:
    <bullet> Council Regulation (EEC) No. 2913/92 of 12 October 1992 
establishing the Community Customs Code, including all annexes thereto, 
as amended;
    <bullet> Commission Regulation (EEC) No. 2454/93 of 2 July 1993 
laying down provisions for the implementation of Council Regulation 
(EEC) No. 2913/92 of 12 October 1992 establishing the Community Customs 
Code, including all annexes thereto, as amended;
    <bullet> Council Regulation (EEC) No. 2658/87 of 23 July 1987 on 
the tariff and statistical nomenclature and on the Common Customs 
Tariff, including all annexes thereto, as amended;
    <bullet> The Integrated Tariff of the European Communities 
established by virtue of Article 2 of Council Regulation (EEC) No. 
2658/87 of 23 July 1987 on the tariff and statistical nomenclature and 
on the Common Customs Tariff, including all annexes thereto, as 
amended; and
    <bullet> For each of the above laws and regulations, all 
amendments, implementing measures and other related measures.
    Administration of the foregoing measures generally is a matter for 
the national customs authorities in each EC member State. This has led 
to disparate administration in a number of important areas, including 
but not limited to:
    <bullet> Differences in the classification and valuation of goods;
    <bullet> Differences in procedures for the classification and 
valuation of goods, including the provision of binding classification 
and valuation information to importers;
    <bullet> Differences in procedures for the entry and release of 
goods, including use of automation in some member States but not 
others, different certificate of origin requirements, different 
criteria among member States for the physical inspection of goods, 
different licensing requirements for importation of food products, and 
different procedures for processing express delivery shipments;
    <bullet> Differences in procedures for auditing entry statements 
after goods are released into the stream of commerce in the European 
Communities;
    <bullet> Differences in penalties and differences in procedures 
regarding the imposition of penalties for violation of customs rules; 
and
    <bullet> Differences in record-keeping requirements.
    USTR believes the lack of uniformity in administration of EC 
customs measures to be inconsistent with the obligations of the 
European Communities, as a member of the World Trade Organization, 
under Article X:3(a) of the GATT 1994. Article X:3(a) requires a WTO 
Member to ``administer in a uniform, impartial and reasonable manner 
all its laws, regulations, decisions and rulings of the kind described 
in [Article X:1].'' Disparate administration from member State to 
member State appears to be inconsistent with the requirement of 
uniformity.
    Furthermore, the Community Customs Code expressly provides that EC 
member States are responsible for appeals from administrative decisions 
on customs matters. Thus, an importer or other interested party seeking 
to challenge a decision by national customs authorities must bring its 
appeal to a national administrative tribunal or court. USTR understands 
that only after proceeding through administrative and/or judicial 
review is the interested party able to have the matter considered by 
the European Court of Justice.
    The lack of procedures for prompt review by a tribunal with EC-wide 
jurisdiction appears to be inconsistent with the European Communities' 
obligation under Article X:3(b) of the GATT 1994, which provides, in 
relevant part, ``Each contracting party shall maintain, or institute as 
soon as practicable, judicial, arbitral or administrative tribunals or 
procedures for the purpose, inter alia, of the prompt review and 
correction of administrative action relating to customs matters.''

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Persons may submit their 
comments either (i) electronically, to <a href="/cdn-cgi/l/email-protection#3670640602020e764345424418515940"><span class="__cf_email__" data-cfemail="4a0c187a7e7e720a3f393e38642d253c">[email protected]</span></a>, Attn: 
``European Communities--Selected Customs Matters (DS315)'' in the 
subject line, or (ii) by fax to Sandy McKinzy, at (202) 395-3640. For 
documents sent by fax, USTR requests that the submitter provide a 
confirmation copy to the electronic mail address listed above.
    USTR encourages the submission of documents in Adobe PDF format, as 
attachments to an electronic mail. Interested persons who make 
submissions by electronic mail should not provide separate cover 
letters; information that might appear in a cover letter should be 
included in the submission itself. Similarly, to the extent possible, 
any attachments to the submission should be included in the same file 
as the submission itself, and not as separate files.
    Comments must be in English. A person requesting that information

[[Page 60452]]

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 commenter. Confidential business information must be 
clearly designated as such and ``BUSINESS CONFIDENTIAL'' must be marked 
at the top and bottom of the cover page and each succeeding page.
    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) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a file on this dispute settlement proceeding, accessible 
to the public, in the USTR Reading Room, which is located at 1724 F 
Street, NW., Washington, DC 20508. 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, the U.S. 
submissions to that panel, the submissions, or non-confidential 
summaries of submissions, to the panel received from other participants 
in the dispute, as well as the report of the panel; and, if applicable, 
the report of the Appellate Body. An appointment to review the public 
file (Docket WTO/DS315, European Communities--Selected Customs Matters 
Dispute) may be made by calling the USTR Reading Room at (202) 395-
6186. The USTR Reading Room is open to the public from 9:30 a.m. to 
noon and 1 p.m. to 4 p.m., Monday through Friday.

Daniel E. Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 04-22739 Filed 10-7-04; 8:45 am]
BILLING CODE 3190-W4-P


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