WTO dispute body meets on Phl-Thai cigarette tax issue

MANILA, Philippines - The World Trade Organization Dispute Settlement Body (WTO DSB) will meet this week to follow-up on the status of issues raised by the Philippines on Thailand’s compliance to a ruling on a case covering taxes imposed on imported cigarettes.

In a notice posted on the WTO’s website, it said Thailand would provide on Friday a status report regarding its customs and fiscal measures on cigarettes imported from the Philippines.

The last time the DSB met on the matter was last Feb. 26.

The WTO ruled with finality in 2011 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 the Philippines.

In October last year, the Philippines posted questions to the Thai government regarding actions which may violate the WTO ruling.

In particular, the Philippine government wanted Thailand to provide an explanation on information that Thailand has decided to prosecute Philip Morris Thailand for alleged underdeclaration of customs value on imports from the Philippines between 2003 to 2007, which may be covered by the WTO ruling.

Trade Secretary Gregory Domingo said last month the Philippine government may seek other forms of compensation depending on the Thai court’s decision.

“If the decision of the Thai court affects (the WTO decision), then we’ll have to look for some other forms of compensation,” he said.