Notice2024-19248

WTO Dispute Settlement Proceeding Regarding United States; Certain Tax Credits Under the Inflation Reduction Act (China)

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
August 27, 2024

Issuing agencies

Trade Representative, Office of United States

Abstract

The Office of the United States Trade Representative (USTR) is providing notice that China has requested the establishment of a dispute settlement panel under the Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement). USTR invites written comments from the public concerning the issues raised in this dispute.

Full Text

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<title>Federal Register, Volume 89 Issue 166 (Tuesday, August 27, 2024)</title>
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[Federal Register Volume 89, Number 166 (Tuesday, August 27, 2024)]
[Notices]
[Pages 68698-68700]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19248]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2024-0014; Dispute Number DS623]


WTO Dispute Settlement Proceeding Regarding United States; 
Certain Tax Credits Under the Inflation Reduction Act (China)

AGENCY: Office of the United States Trade Representative.

ACTION: Notice and request for comments.

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SUMMARY: The Office of the United States Trade Representative (USTR) is 
providing notice that China has requested the establishment of a 
dispute settlement panel under the Marrakesh Agreement Establishing the 
World Trade Organization (WTO Agreement). USTR invites written comments 
from the public concerning the issues raised in this dispute.

[[Page 68699]]


DATES: Although USTR will accept any comments during the course of the 
dispute settlement proceeding, you should submit your comment on or 
before September 26, 2024 to be assured of timely consideration by 
USTR.

ADDRESSES: USTR strongly prefers electronic submissions made through 
the Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the 
instructions for submitting comments in Section III below. The docket 
number is USTR-2024-0014. For alternatives to submission through 
<a href="http://regulations.gov">regulations.gov</a>, please contact Sandy McKinzy at 
<a href="/cdn-cgi/l/email-protection#d2a1b3bcb6ab8dbfb1b9bbbca8ab92a7a1a6a0fcb7bda2fcb5bda4"><span class="__cf_email__" data-cfemail="77041619130e281a141c1e190d0e37020403055912180759101801">[email&#160;protected]</span></a> or 202.395.9483.

FOR FURTHER INFORMATION CONTACT: Associate General Counsel Erin Rogers 
at <a href="/cdn-cgi/l/email-protection#f590879a92908786b580868187db909a85db929a83"><span class="__cf_email__" data-cfemail="cca9bea3aba9bebf8cb9bfb8bee2a9a3bce2aba3ba">[email&#160;protected]</span></a>, or 202.395.9126.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 127(b)(1) of the Uruguay Round Agreements Act (URAA) (19 
U.S.C. 3537(b)(1)) requires notice and opportunity for comment after 
the United States submits or receives a request for the establishment 
of a WTO dispute settlement panel. Pursuant to this provision, USTR is 
providing notice that China has requested the establishment of a 
dispute settlement panel pursuant to the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes.

II. Major Issues Raised by China

    On March 26, 2024, China requested consultations with the United 
States concerning certain clean energy tax credits in the Inflation 
Reduction Act, Public Law 117-169 and related implementing guidance. 
You can find the consultation request at <a href="http://www.wto.org">www.wto.org</a> in a document 
designated as WT/DS623/1. The United States and China held 
consultations on May 7, 2024. On July 15, 2024, China made its request 
to the WTO to establish a WTO dispute settlement panel. You can find 
the panel request at <a href="http://www.wto.org">www.wto.org</a> in a document designated as WT/DS623/
3.
    China's panel request concerns aspects of five tax credits created 
or amended by the Inflation Reduction Act, and related implementing 
guidance issued by the U.S. Department of the Treasury and the Internal 
Revenue Service, and the U.S. Department of Energy. The five tax 
credits are: the Clean Vehicle Tax Credit (Internal Revenue Code Sec. 
30D); the Investment Tax Credit for Energy Property (Internal Revenue 
Code Sec. 48); the Clean Electricity Investment Tax Credit (Internal 
Revenue Code Sec. 48E); the Production Tax Credit for Electricity from 
Renewables (Internal Revenue Code Sec. 45); and, the Clean Electricity 
Production Tax Credit (Internal Revenue Code Sec. 45Y). With respect to 
the Clean Vehicle Tax Credit, China cites the North American assembly 
requirement, the critical minerals sourcing requirement, the battery 
components requirement, and the disqualification related to foreign 
entities of concern. With respect to the remaining tax credits, China 
cites the domestic content bonus credit requirements. China alleges 
that these measures are inconsistent with Article III:4 of the WTO 
General Agreement on Tariffs and Trade 1994 (GATT 1994); Articles 2.1 
and 2.2 of the WTO Agreement on Trade-Related Investment Measures; and 
Articles 3.1(b) and 3.2 of the WTO Agreement on Subsidies and 
Countervailing Measures. With respect to the Clean Vehicle Tax Credit, 
China also alleges that the measure is inconsistent with Article I:1 of 
the GATT 1994.

III. Public Comments: Requirements for Submissions

    USTR invites written comments concerning the issues raised in this 
dispute. All submissions must be in English and sent electronically via 
<a href="http://regulations.gov">regulations.gov</a>. To submit comments via <a href="http://regulations.gov">regulations.gov</a>, enter docket 
number USTR-2024-0014 on the home page and click `search.' The site 
will provide a search-results page listing all documents associated 
with this docket. Find a reference to this notice by selecting `notice' 
under `document type' and click in the `refine document results' 
section on the left side of the screen and click on the link entitled 
`comment.' For further information on using <a href="http://regulations.gov">regulations.gov</a>, please 
consult the resources provided on the website by clicking on `How to 
Use Regulations.gov' on the bottom of the home page.
    Regulations.gov allows users to provide comments by filling in a 
`type comment' field, or by attaching a document using an `upload file' 
field. USTR prefers that you provide comments in an attached document. 
If a document is attached, it is sufficient to type `see attached' in 
the `type comment' field. USTR prefers submissions in Microsoft Word 
(.doc) or Adobe Acrobat (.pdf). If the submission is in an application 
other than those two, please indicate the name of the application in 
the `type comment' field. If you need assistance uploading your 
comment(s), please call the <a href="http://regulations.gov">regulations.gov</a> helpdesk at 1.877.378.5457, 
Option 2.
    For any comments submitted electronically that contain business 
confidential information (BCI), the file name of the business 
confidential version should begin with the characters `BCI'. Any page 
containing BCI must be clearly marked `BUSINESS CONFIDENTIAL' on the 
top and bottom of that page and the submission should clearly indicate, 
via brackets, highlighting or other means, the specific material that 
is BCI. If you request business confidential treatment, you must 
certify in writing that the information would not customarily be 
released to the public.
    Filers of submissions containing BCI also must submit a public 
version of their comments. The file name of the public version should 
begin with the character `P'. The `BCI' and `P' should be followed by 
the name of the person or entity submitting the comments or rebuttal 
comments. If these procedures are not sufficient to protect BCI or 
otherwise protect business interests, please contact Sandy McKinzy at 
<a href="/cdn-cgi/l/email-protection#80f3e1eee4f9dfede3ebe9eefaf9c0f5f3f4f2aee5eff0aee7eff6"><span class="__cf_email__" data-cfemail="98ebf9f6fce1c7f5fbf3f1f6e2e1d8edebeceab6fdf7e8b6fff7ee">[email&#160;protected]</span></a> or 202.395.9483 to discuss whether 
alternative arrangements are possible.
    USTR may determine that information or advice contained in a 
comment, other than BCI, is confidential in accordance with section 
135(g)(2) of the Trade Act of 1974 (19 U.S.C. 2155(g)(2)). If a 
submitter believes that information or advice is confidential, they 
must clearly designate the information or advice as confidential and 
mark it as `SUBMITTED IN CONFIDENCE' at the top and bottom of the cover 
page and each succeeding page, and 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 docket on this dispute settlement proceeding, docket 
number USTR-2024-0014, accessible to the public at <a href="http://www.regulations.gov">www.regulations.gov</a>. 
The public file will include non-confidential public comments USTR 
receives regarding the dispute. If a dispute settlement panel is 
convened, or in the event of an appeal from a panel, USTR will make the 
following documents publicly available at <a href="http://www.ustr.gov">www.ustr.gov</a>: the U.S. 
submissions and any non-confidential summaries of submissions received 
from other participants in the dispute. If a dispute settlement panel 
is convened, or in the event of an appeal from a panel, the report of 
the panel, and, if applicable, the report of the Appellate Body, will 
be available on the

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website of the World Trade Organization, at <a href="http://www.wto.org">www.wto.org</a>.

Juan Millan,
Acting General Counsel, Office of the United States Trade 
Representative.
[FR Doc. 2024-19248 Filed 8-26-24; 8:45 am]
BILLING CODE 3390-F4-P


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Indexed from Federal Register on August 27, 2024.

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