Phl awaits Thai report on WTO cigarette dispute

MANILA, Philippines - The Thai government is set to provide an update on issues raised by the Philippines on the former’s compliance to the ruling of the World Trade Organization (WTO) on a case covering taxes imposed on imported cigarettes this week.

The WTO said in a notice posted on its website that Thailand would give a status report on customs and fiscal measures on cigarettes imported from the Philippines during the Dispute Settlement Body’s (DSB) meeting on Wednesday.

The DSB’s last meeting on the matter was in May.

In 2011, the WTO ruled with finality that Thailand’s taxes on imported cigarettes from the Philippines violated global trading rules.

As part of the ruling, Thailand was ordered to implement reforms on customs valuations and taxes.

The ruling was issued following a case filed by the Philippine government in behalf of Philip Morris Philippines against Thailand before the WTO in 2008 for charging higher duties on cigarette exports from here.

Trade Undersecretary Adrian Cristobal Jr. said last month the Philippines would evaluate latest information given by the Thai government regarding its compliance to the WTO ruling.

“They (Thailand) asserted they have no further actions outstanding but we strongly disagree with Thailand’s last statements in (WTO) DSB (Dispute Settlement Body) meeting,” he said.

He insisted that there were two remaining issues with regard to Thailand’s compliance.

In particular, these cover the decision of the Thai attorney general to prosecute a Thai importer of Philippine cigarettes and several of the importer’s current and former employees for alleged under declaration of customs values in 2003 to 2007, as well as the decision by the Thai Customs Board of Appeals to reject the declared transaction values for 210 entries of Indonesian goods in 2002.

Cristobal said the entries in both cases are covered by the WTO ruling.

As the country evaluates the information provided by Thailand, he said the government is also reserving its right to seek formal proceedings under the WTO to enforce the ruling.