Source: http://trade.ec.europa.eu/wtodispute/show.cfm?id=152&code=1
Timestamp: 2015-12-02 05:08:35
Document Index: 662375916

Matched Legal Cases: ['Art. 21', 'Art. 21', 'art. 21', 'Art. 4', 'Art. 22', 'Art. 22', 'Art. 4', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'Art. 21', 'Art. 22', 'Art. 4', 'Art. 4', 'Art. 22', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'Art. 22', 'Art. 4', 'Art. 22', 'Art. 4', 'Art. 21', 'Art. 21', 'Art. 21']

WT/DS108 Tax treatment for "Foreign Sales Corporations" - Trade - European Commission
WT/DS108 - Tax treatment for "Foreign Sales Corporations"
Last update: 14/12/2006
EU Complaint against:
United States Third parties: Australia - Barbados - Canada - India - Japan Summary of case: The FSC scheme provided for an exemption to the general rules established in the US Internal Revenue Code (sections 921-927) which resulted in substantial tax savings for US companies exporting through foreign sales corporations (FSCs). Despite later changes to the law, the relevant legislation remained WTO-inconsistent and was the subject of challenges by the EU through WTO compliance panels.
Subsidies (3)Agriculture (8, 9, 10)
On 14 March 2006, following the Panel and Appellate Body rulings in favour of the EC in the third round of the WTO litigation on this matter, the DSB confirmed the WTO incompatibility of the challenged US legislation that replaced the original FSC legislation in 2000 (FSC Replacement Act/ETI) and 2004 (American Jobs Creation Act). As a result, and as provided under the applicable EC Regulation, EC countermeasures had to be reintroduced automatically.
On 11 May 2006, the US Congress adopted a Bill repealing the grandfathering provisions of the FSC/ETI legislation and the American Jobs Creation Act for the next taxable years. As the transition rules of that legislation were set to expire end-2006, the Commission submitted a proposal for the termination of the countermeasures. The proposal was approved by the Council through Council Regulation (EC) NO 728/2006 of 15 May 2006.
Date of request: 18/11/1997
Date of request: 01/07/1998
Date of establishment: 22/09/1998
Date of circulation of report: 08/10/1999 Appeal:
Date of request: 26/11/1999
Date of circulation of report: 24/02/2000 Date of adoption - panel/AB report:
Recourse to Articles:
13-01-2005 -
Recourse to Art. 21.5 - 20-12-2000 -
Recourse to Art. 21.5 - WTO documents
09/07/1997 - Request for the establishment of a panel by the European Communities 28/11/1997 - Request for consultations by the European Communities 08/10/1999 - Report of the panel 26/11/1999 - Notification of an appeal by the United States 24/02/2000 - Report of the Appellate Body 02/10/2000 - Request for Modification of the Time-Period for Compliance 05/10/2000 - Understanding on the procedures art. 21 & 22 17/11/2000 - Recourse by the EC to Art. 4.10 of the SCM Agreement and Art. 22.2 of the DSU 21/11/2000 - Recourse by the EC to Article 21.5 of the DSU 27/11/2000 - Request by the US for Arbitration under Article 22.6 of the DSU 08/12/2000 - Recourse to Article 21.5 of the DSU by the European Communities 21/12/2000 - Recourse by the US to Art. 22.6 of the DSU and Art. 4.11 of the SCM Agreement 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel - Part 2 (First Submission by the Parties) 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel - Part 3 (Third Party Submissions) 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel - Part 4 (Second Submissions by the Parties) 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel - Part 5 (Oral Statements of the Parties) 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel - Part 6 (Oral Statements of the Third Parties) 20/08/2001 - Recourse to Article 21.5 of the DSU by the EC - Report of the Panel - Part 7 (Answers to Questions and Comments on these Answers) 15/10/2001 - Notification of an Appeal by the United States 06/11/2001 - Appeal by the EC pursuant to Rule 23(1) of the Working Procedures for Appellate Review 16/11/2001 - Appellee Submission by the EC pursuant to Rule 22 of the Working Procedures for Appellate Review 14/01/2002 - Recourse to Art. 21.5 of the DSU by the EC - Report of the AB 30/08/2002 - Recourse to arbitration by the US under Art. 22.6 of the DSU and Art. 4.11 of the SCM Agreement - Decision of the Arbitrator 24/04/2003 - Recourse by the EC to Art. 4.10 of the SCM agreement and Art. 22.7 of the DSU 24/04/2003 - Recourse by the EC to Article 4.10 of the SCM agreement and Article 22.7 of the DSU 10/11/2004 - Second Recourse by the European Communities to Article 21.5 of the DSU - Request for consultations 22/11/2004 - Request to join consultations - Communication from Australia 14/01/2005 - Second Recourse to Article 21.5 of the DSU by the European Communities 09/05/2005 - Constitution of the Panel - Note by the Secretariat 03/08/2005 - Communication from the Chairman of the Panel 30/09/2005 - Report of the Panel part 1 30/09/2005 - Report of the Panel part 2 30/09/2005 - Report of the Panel part 3 30/09/2005 - Report of the Panel part 4 30/09/2005 - Report of the Panel part 5 30/09/2005 - Report of the Panel part 6 16/11/2005 - Notification of an Appeal by the United States 30/11/2005 - Notification of an Other Appeal by the European Communities 13/02/2006 - Report of the Appellate Body 17/03/2006 - Appellate Body Report and Panel Report pursuant to Article 21.5 of the DSU EU submissions
05/01/1999 - Non-confidential Summary Of the First Submission of the European Communities
17/01/2001 - First written submission of the EC
17/01/2001 - Second written submission of the EC
14/02/2002 - Recourse by the US to Art. 22.6 of the DSU and Art. 4.11 of the SCM Agreement - First written submission of the EC
26/02/2002 - Recourse by the US to Art. 22.6 of the DSU and Art. 4.11 of the SCM Agreement - Second written submission of the EC
19/05/2005 - Second Recourse to Art. 21.5 of the DSU by the EC - First Written Submission of the European Communities
16/06/2005 - Second Recourse to Art. 21.5 of the DSU by the EC - Rebuttal Submission of the European Communities
30/06/2005 - Second Recourse to Art. 21.5 of the DSU by the EC - Oral Statement by the EC to the First Meeting of the Panel
24/02/2000 - WTO appellate body confirms that US export subsidies breach International Trade Rules - Press release
04/05/2000 - Foreign Sales Corporations: EU and US try to find an agreement
29/05/2000 - European Commission expresses concern on WTO compatibility of US proposals on Foreign Sales Corporations (FSC)
01/09/2000 - European Commision says U.S. FSC proposal still WTO-incompatible
02/10/2000 - EU and US reach agreement on procedures for handling Foreign Sales Corporations (FSC) dispute - Press release
12/10/2000 - EC clarifies position on Foreign Sales Corporation dispute
17/11/2000 - Background on latest developments in the FSC trade dispute - Questions and answers
17/11/2000 - EU requests WTO compliance panel and authorisation to impose sanctions against the US in Foreign Sales Corporation trade dispute - Press release
17/11/2000 - FSC dispute: EU requests WTO authorisation for sanctions against US worth up to $4.043 billion - Press release
20/08/2001 - WTO confirms US Foreign Sales Corporations are incompatible with WTO rules - Press release
14/01/2002 - EU welcomes WTO definitive confirmation that US export subsidies (FSC) are illegal
30/08/2002 - EU welcomes WTO award of US $ 4 billion of countermeasures and renews call for expeditious US compliance with WTO rules
13/09/2002 - EC publishes list of products that could be subject to countermeasures
13/09/2002 - Notice relating to the WTO Dispute Settlement proceeding concerning the US tax treatment of FSC - Invitation for comments on the list of products that could be subject to countermeasures
26/02/2003 - European Commission submits to MS draft list of products that could be subject to countermeasures
25/04/2003 - Unted States – Tax Treatement for FSC
07/05/2003 - Following WTO authorisation to apply countermeasures of up to $ 4 billion, EU expects US to ensure compliance with WTO rules before the beginning of next year
05/11/2003 - Commission prepares for the imposition of countermeasures on US products
05/11/2003 - Foreign Sales Corporations (FSC): Commission prepares for the imposition of countermeasures on US products.
08/12/2003 - Council Regulation (EC) No 2193/2003 of 8 December 2003 establishing additional customs duties on imports of certain products originating in the US
27/02/2004 - Foreign Sales Corporation (FSC) - Questions and Answers
01/03/2004 - FSC: EU starts countermeasures on US products
12/05/2004 - USA-Foreign Sales Corporation - Pascal Lamy welcomes US Senate vote
18/06/2004 - US-Foreign Sales Corporation - Pascal Lamy welcomes US House of Representatives vote
11/10/2004 - Foreign Sales Corporations (FSC): US to repeal illegal export subsidies as from 2007 25/10/2004 - Foreign Sales Corporations (FSC): EU welcomes US repeal of illegal export subsidies – EU to lift sanctions and ask for check on WTO compatibility 30/09/2005 - FSC: WTO condemns US subsidies to exporters; recipients of illegal support include Boeing 14/03/2006 - The Panel and Appellate Body rulings favour the EC. Council Regulation no. 171/2005 provides that countermeasures should then be reintroduced automatically
11/05/2006 - The US Congress adopts a Bill repealing the provisions of the FSC/ETI legislation and the Jobs Act for the next taxable years
15/05/2006 - Upon proposal from the Commission, the Council of the EU adopts Regulation No. 728/2006 repealing Regulations No. 2193/2003 and No. 171/2005, thereby ending the countermeasures
Last update: 14 Dec 2006 | Top of page