[Federal Register Volume 65, Number 111 (Thursday, June 8, 2000)]
[Notices]
[Pages 36500-36501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14513]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-197]


WTO Consultations Regarding Brazil Customs Valuation Regime

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 May 31, 2000, the United States requested WTO 
consultations with Brazil regarding its system for verification of the 
declared values of imported goods, such as textile products. Brazil 
uses minimum reference prices both as a requirement to obtain import 
licenses and/or as a base requirement for import. In practice, this 
system works to prohibit the import of products with declared values 
below established minimum prices, and, as such, appears to violate 
provisions of the Agreement on Customs Valuation; the GATT 1994; the 
Agreement on Import Licensing Procedures; the Agreement on Textiles and 
Clothing; and the Agreement on Agriculture. Pursuant to Article 4.3 of 
the WTO Dispute Settlement Understanding (``DSU''), such consultations 
are to take place within a period of 30 days from the date of the 
request, or within a period otherwise mutually agreed between the 
United States and Brazil. USTR invites written comments from the public 
concerning the issues raised in this dispute.

DATES: Although the USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before July 31, 2000 to be assured of timely 
consideration by USTR.

ADDRESSES: Submit comments to Sandy McKinzy, Monitoring and Enforcement 
Unit, Office of the General Counsel, Room 122, Office of the United 
States Trade Representative, 600 17th Street, NW., Washington, DC, 
20508, Attn: Brazil Customs Valuation Dispute. Telephone: (202) 395-
3582.

FOR FURTHER INFORMATION CONTACT: David J. Ross, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC, (202) 395-3581.

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 Dispute 
Settlement Understanding. 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.

[[Page 36501]]

Major Issues Raised by the United States

    On February 13, 1998, Brazil established under Decree No. 2.498/98 
and other related statutes and regulations a system to verify the 
declared values of imported goods. In practice, however, Brazil 
utilizes this verification system--in conjunction with non-automatic 
import licensing procedures--to prohibit or restrict the import of 
products with declared values below the minimum prices. This situation 
appears inconsistent with Articles 1 through 7, and 12 of the Agreement 
on Customs Valuation; general notes 1, 2, and 4 of Annex 1 of the 
Agreement on Customs Valuation; Articles II and XI of the GATT 1994; 
Articles 1 and 3 of the Agreement on Import Licensing Procedures; 
Articles 2 and 7 of the Agreement on Textiles and Clothing; and Article 
4.2 of the Agreement on Agriculture.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. 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 commenter. Confidential business information must be 
clearly marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at 
the top of each page of each copy.
    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 so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; 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: Room 101, Office of the United 
States Trade Representative, 600 17th Street, NW., Washington, DC 
20508. The public file will include a listing of any 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/D-197, Brazil Customs 
Valuation Dispute) may be made by calling Brenda Webb, (202) 395-6186. 
The USTR Reading Room is open to the public from 9:30 a.m. to 12 noon 
and 1 p.m. to 4 p.m., Monday through Friday.

A. Jane Bradley,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 00-14513 Filed 6-7-00; 8:45 am]
BILLING CODE 3190-01-P