THAILAND
The World Trade Organization (WTO) has issued a ruling against Thailand’s regulations on cigarette imports.
The WTO dispute panel released its report mid-November that said the country has failed to implement the recommendations and rulings of the dispute settlement body to bring its measures into conformity with its obligations under the customs valuation agreement and the General Agreement on Tariffs and Trade (GATT). The issue concerns the valuation of cigarettes imported by Philip Morris Thailand Limited from Philip Morris subsidiaries in the Philippines and Indonesia.
Philip Morris Philippines filed a complaint in 2008 against Thai fiscal and customs measures affecting cigarettes from the Philippines, including customs valuation, excise tax, health tax, value-added tax, retail licensing requirements, and import guarantees imposed on cigarette importers. The company claimed that the measures resulted in unfair treatment of imported cigarettes.
In late 2010 the dispute panel ruled in favor of the Philippines, saying that Thailand’s tax treatment on Philippine tobacco exports was contrary to multilateral trading rules. The latest WTO dispute panel ruling can still be appealed. The Thai customs department is considering its next move.