[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Notices]
[Pages 6827-6828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3545]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. WTO/D-15]


WTO Dispute Settlement Proceeding: 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; request for comments.

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SUMMARY: Pursuant to section 127(b)(1) of the Uruguay Round Agreements 
Act (URAA) (19 U.S.C. 3537(b)(1)), the Office of the United States 
Trade Representative (USTR) is providing notice that the United States 
has requested the establishment of a dispute settlement panel under the 
Agreement Establishing the World Trade Organization (WTO), to examine 
whether Turkey's imposition of a tax on box office revenues from the 
showing of foreign films, but not on the revenues 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). 
USTR also invites written comments from the public concerning the 
issues raised in the dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before March 3, 1997, to be assured of timely 
consideration by USTR in preparing its first written submission to the 
panel.

ADDRESSES: Comments may be submitted to Ileana Falticeni, Office of 
Monitoring and Enforcement, Room 501, Attn: Turkey Film Tax Dispute, 
Office of the U.S. Trade Representative, 600 17th Street, N.W., 
Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT:
Thomas Robertson, Associate General Counsel, Office of the General 
Counsel, Office of the U.S. Trade Representative, 600 17th Street, N.W. 
Washington, DC 20508, (202) 395-6800.

SUPPLEMENTARY INFORMATION: Turkey's Law on Municipal Revenues (Law No. 
2464) imposes a 25% municipality tax on box office revenues generated 
from the showing of foreign films, but not the

[[Page 6828]]

revenue generated from the showing of domestic films. Current 
information is that the revenues are allocated to municipal coffers for 
general use. On January 9, 1997, the United States formally requested 
establishment of a WTO dispute settlement panel to examine whether 
Turkey's imposition of the Municipality Tax is inconsistent with the 
obligations of the GATT 1994. The WTO Dispute Settlement Body (DSB) 
considered the U.S. request at its meeting on January 22, 1997. Under 
the WTO Understanding on Rules and Procedures Governing the Settlement 
of Disputes, the DSB must establish a panel at the next DSB meeting 
whether this request is on the agenda, unless the DSB determines by 
consensus otherwise. Under normal circumstances, the panel would be 
expected to issue a report detailing its findings and recommendations 
within six to nine months after it is established.

Major Issues Raised by the United States and Legal Basis of 
Complaint

    Article III of the GATT 1994 provides, among other things, that the 
products of the territory of one WTO member imported into the territory 
of another WTO member shall not be subject to internal taxes or other 
changes of any kind in excess of those applied, directly or indirectly, 
to like domestic products. WTO members are also prohibited from 
applying internal taxes or internal charges to imported or domestic 
products so as to afford protection to domestic production. Turkey's 
imposition of a tax on box office revenues that is applied only to 
revenues generated by foreign films, and not to revenues generated by 
domestic films, would appear to be inconsistent with the obligations 
set forth in Article III of the GATT 1994.

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.
    A person requesting that information or advice contained in a 
comment submitted by that person, other than business confidential 
information, be treated as confidential in accordance with section 
135(g)(2) of the Trade Act of 1974 (19 U.S.C. 2155)--
    (1) Must so designate that 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, 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, N.W., Washington DC 20508. The public 
file will include a listing of any comments received by USTR from the 
public with respect to the proceeding; the U.S. submissions to the 
panel in the proceeding; 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 dispute settlement panel and, if 
applicable, the report of the Appellate Body. An appointment to review 
the public file (Docket WTO/D-15, ``U.S.-Turkey: Film Tax''), 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 U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 97-3545 Filed 2-12-97; 8:45 am]
BILLING CODE 3190-01-M