UNITED STATES – TAX TREATMENT FOR

"FOREIGN SALES CORPORATIONS"

Recourse by the European Communities to Article 21.5 of the DSU

Communication from the Chairman of the Panel

                The following communication, dated 15 March 2001, addressed to the Dispute Settlement Body, is circulated pursuant to Article 21.5 of the DSU.

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            Article 21.5 of the DSU stipulates that a panel shall circulate its report within 90 days after the date of referral of the matter to it.  It further provides that when a panel considers that it cannot issue its report within that time, it shall inform the DSB in writing of the reasons for the delay, together with an estimate of the period within which it will issue its report.

            The matter regarding United States – Tax Treatment For "Foreign Sales Corporations" -- Recourse by the European Communities to Article 21.5 of the DSU (DS108) was referred to the original panel on 20 December 2000.

            It will not, however, be possible for the Panel to complete its work within 90 days, due largely to the complex nature of the case, the series of procedural steps preferred by both parties and the time needed for translation.

            The Panel expects to complete its work by July 2001.