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 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 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 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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