July 8, 2003 – Semiconductor Equipment and Materials International (SEMI) is lauding the Senate Finance Committee, which is holding Congressional hearings in order to explore the potential impact to domestic manufacturers by repealing the Foreign Sales Corporation/Extraterritorial Income Exclusion (FSC/ETI).
Many SEMI member companies use this tax regime, which has been mandated by the WTO following changes by the European Union. The EU, which has the authority to impose sanctions upwards of $4 billion against the US, wants the legislation repealed by the end of 2003.
SEMI says the possible peeling back of the legislation will have a negative impact on international competitiveness for US companies. “Congress must find a suitable replacement for FSC/ETI that does not harm domestic manufacturers who export the bulk of their product overseas,” said Victoria Hadfield, president of SEMI North America.