THAILAND
Deputy Prime Minister Wissanu Krea-ngam has said the dispute involving Philip Morris International (PMI) is “not over yet.”
He made the remarks after the Department of Trade and Industry (DTI) of the Philippines released a statement on its website, which said a World Trade Organization (WTO) panel has decided to uphold the Philippines’ claims that Thailand has been violating international customs law.
Krea-ngam said the Commerce Ministry, Foreign Ministry, Customs Department, and Department of Special Investigation are working together to solve the dispute. He said there are cases being tried in Thai courts, as well as in the WTO court, adding the issue is sensitive and is “not over yet”. The company’s Thai subsidiary now faces both criminal and civil suits.
The WTO panel issued a ruling on July 12 that Thailand had failed to comply with its obligations under the customs valuation agreement, regarding the valuation of cigarettes imported by Philip Morris Thailand from its subsidiaries in the Philippines.
After the ruling, the tobacco company has urged Thailand to drop criminal prosecution against Philip Morris Thailand Limited (PMTL).
The Office of the Attorney-General charged PMTL with evading taxes by under-declaring the value of cigarettes it imported from the Philippines between 2003 and 2006.
The undervaluation meant that PMTL managed to avoid paying more than THB20 billion in taxes.