Phl continues to push Thailand on cigarette issue

MANILA, Philippines - The Philippines is set to report on the status of the Thai government’s compliance to a ruling issued by 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, the Philippines would give a statement on Thailand’s customs and fiscal measures on cigarettes imported from here during the meeting of the agency’s Dispute Settlement Body (DSB) on Monday. 

Late last month, Trade Undersecretary Adrian Cristobal Jr. said the Philippine government is giving Thailand time to address issues concerning its compliance to the ruling given a change in the country’s political leadership.

 “Out of consideration on developments in Thailand, we have given this issue some time. Now they have a new government, we are assessing our options,” he said. 

Thai army chief Prayuth Chan-Ocha, who took control of the country in a coup that toppled the government of Yingluck Shinawatra, was named prime minister in late August by the legislature.

For the Philippines, there are still outstanding issues regarding Thailand’s compliance with the recommendations and rulings given by the WTO.

Among the pending issues is the decision of the Thai Attorney General to prosecute an 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.

The Philippine government wants Thailand to provide more information on the matter to determine whether the customs transactions covered by the WTO ruling are also included in the case that the Thai government intends to prosecute.

The Thai government said earlier though it has complied with the WTO ruling.

As outstanding issues remain, the Philippines is looking at two options: to continue surveillance in the DSB or to go to formal proceedings for dispute settlement.

The WTO ruled in 2011 that Thailand’s move to impose higher duties on imported cigarettes from the Philippines violated global trading rules.

Thailand was ordered to put in place reforms on customs valuations and taxes.

The WTO ruling was issued after the Philippine government filed a case on behalf of Philip Morris Philippines against Thailand for charging higher duties on  cigarette imports from here.