[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Notices]
[Page 64907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32174]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-105]


Termination of Section 302 Investigation: Practices of the 
Government of Turkey Regarding the Imposition of a Discriminatory Tax 
on Box Office Revenues

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of termination and monitoring.

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SUMMARY: On June 12, 1996, the United States Trade Representative 
(USTR) initiated an investigation under section 302(b)(1) of the Trade 
Act of 1974, as amended (the Trade Act) (19 U.S.C. 2412(b)(1)), with 
respect to certain acts, policies and practices of the Government of 
Turkey that may result in the discriminatory treatment of U.S. films in 
Turkey. Following consultations with the United States under the 
auspices of the World Trade Organization (WTO), Turkey agreed to 
equalize any tax imposed on box office receipts from the showing of 
domestic and imported films. Having reached a satisfactory resolution 
of the issues under investigation, the USTR has determined to terminate 
this section 302 investigation and monitor implementation of the 
agreement under section 306 of the Trade Act.

EFFECTIVE DATE: This investigation was terminated on December 3, 1997.

ADDRESSES: Section 301 Committee, Office of the United States Trade 
Representative, Room 223, 600 17th Street, N.W., Washington, D.C. 
20508.

FOR FURTHER INFORMATION CONTACT:
Stephen R. Fox, Deputy Director for Intellectual Property (202) 395-
6864, or Geralyn Ritter, Assistant General Counsel (202) 395-6800.

SUPPLEMENTARY INFORMATION: On June 12, 1996, the USTR initiated an 
investigation under section 302(b)(1) of the Trade Act with respect to 
whether certain laws and regulations of the Government of Turkey 
affecting the taxation of box office revenues generated from the 
showing of foreign-origin films that may result in the discriminatory 
treatment of U.S. films in Turkey are actionable under section 301(a). 
See 61 FR 30646 of June 17, 1996. The investigation specifically 
considered whether Turkey's Law on Municipal Revenues (Law No. 2464) 
which imposes a 25% municipality tax on box office revenues generated 
from the showing of foreign films, but not the revenue generated from 
the showing of domestic films is inconsistent with Turkey's obligations 
under Article III of the General Agreement on Tariffs and Trade 1994 
(GATT 1994), administered by the World Trade Organization (WTO). 
Pursuant to section 303(a) of the Trade Act, the USTR requested 
consultations with the Government of Turkey under the procedures of the 
WTO Understanding on Rules and Procedures Governing the Settlement of 
Disputes (DSU).

Resolution of Dispute

    In consultations between the Government of the United States and 
the Government of Turkey on July 23, 1996 under the WTO DSU procedures, 
Turkey agreed to equalize, as soon as reasonably possible, any tax 
imposed in Turkey on box office receipts from the showing of domestic 
and imported films. Based on these consultations, Turkey and the United 
States notified the WTO Dispute Settlement Body on July 14, 1997 that 
they have agreed to terminate consultations on this matter and that the 
Untied States has formally withdrawn this matter from further attention 
under the provisions of the DSU. On the basis of the measures Turkey 
has agreed to undertake in order to provide a satisfactory resolution 
to the matter under investigation, the USTR has decided to terminate 
this section 302 investigation. Pursuant to section 306 of the Trade 
Act, the USTR will monitor Turkey's implementation of its obligations 
under Article III of the GATT 1994 with respect to taxation of box 
offices revenues generated by the showing of domestic and imported 
films.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 97-32174 Filed 12-8-97; 8:45 am]
BILLING CODE 3190-01-M