KPMG - cutting through complexity

WTO panel report on the China electronic payment services dispute

July 16, 2012 | No. 2012-216


The World Trade Organization (WTO) today issued a dispute panel report in the case, China — Certain Measures Affecting Electronic Payment Services (WT/DS413/R).

According to a related release from the U.S. Trade Representative, the WTO panel agreed that China’s measures deny a level playing field to U.S. service providers, and that China had entrenched the market dominance of its own company, China Union Pay (CUP), and distorted competition in China to the detriment of U.S. providers.

Background

The United States alleged that:

  • China permits only a Chinese entity to supply electronic payment services for payment card transactions denominated and paid in Renminbi (RMB) in China.
  • Service suppliers of other countries can only supply these services for payment card transactions paid in foreign currency.
  • China requires all payment card processing devices to be compatible with that entity's system, and that payment cards must bear that company's logo.
  • The Chinese entity has guaranteed access to all merchants in China that accept payment cards, while services suppliers of other countries must negotiate for access to merchants.

The United States alleged that China appears to be acting inconsistently with its WTO obligations. See TaxNewsFlash-Trade & Customs 2011-55.

 

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich, (312) 665-1022

Andrew Siciliano, (631) 425-6057

John L. McLoughlin, (267) 256-2614

Todd R. Smith, (949) 885-5617

Luis A. Abad, (212) 954-3094

Amie Ahanchian, (202) 533-3247

Or your local KPMG Trade & Customs professional.

* * * * *

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

Back to top


©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in TaxNewsFlash-Trade & Customs is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to US-KPMGWNT@kpmg.com. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 1801 K Street, NW, Washington, DC 20006.

To unsubscribe from TaxNewsFlash-Trade & Customs, reply to
US-KPMGWNT@kpmg.com.

Privacy | Legal

Home
Subscribe
Contact Us