Phl to provide update on WTO case vs Thailand

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

In a notice posted on its website, the WTO said the Philippines will be giving a statement on Thailand’s customs and fiscal measures on cigarettes imported from here at the meeting of the Dispute Settlement Body on Friday.

Last month, Trade Undersecretary Adrian Cristobal Jr. said the Philippines will continue to wait for more information from the Thai government on customs transactions which may be affected by the WTO ruling.

In 2011, the WTO ruled that Thailand’s imposition of 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 after the Philippine government filed a case on behalf of Philip Morris Philippines against Thailand before the WTO in 2008 for charging higher duties on cigarette exports from here.Cristobal said the Philippines is concerned with 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 from 2003 to 2007.

“We are still waiting for more information to find out whether these customs transactions covered by this (WTO) ruling are also included in the case that the Thai government intends to prosecute,” Cristobal said.

He said the Philippines wants to make sure that the country’s victory in WTO will not be rendered useless by a domestic ruling.

While there are concerns, the Philippines is reserving its right to seek formal proceedings under the WTO to enforce the ruling.Cristobal said the two countries continue to hold bilateral talks. “We are still talking to them (Thai counterparts). There is no prescriptive period for us to move forward on a formal compliance,” he said.