EU starts imposing duties on imports from U.S.

EU starts imposing duties on imports from U.S.    The European Union Monday acted on its dispute against the U.S. Foreign Sales Corporations tax regime and began imposing an additional customs duty of 5 percent on a range of U.S. products imported from the United States.
   The retaliatory action is the outcome of a long-standing dispute before the World Trade Organization on the U.S. Foreign Sales Corporations.
   The European Commission said Monday that it would raise the customs import duty on the U.S. goods concerned “by automatic, monthly increases by 1 percent up to a ceiling of 17 percent to be reached on March 1, 2005, if compliance has not happened in-between.”
   However, the European Commission reiterated its hope that the U.S. will comply with the WTO ruling against the tax regime.
   “Countermeasures will be lifted the day the Foreign Sales Corporations (regime) is repealed,” said EU trade commissioner Pascal Lamy. “In my recent trip to Washington, I have discussed this issue with the U.S. administration and congressional leaders and I am encouraged that progress can be rapidly achieved to adopt legislation repealing the FSC.”