WTO sets talks on Phl-Thailand tax dispute

MANILA, Philippines - The World Trade Organization’s (WTO) Dispute Settlement Body (DSB) is set to discuss this week the status of Thailand’s compliance to the agency’s ruling to implement tax reforms on imported cigarettes on a case filed by the Philippines.

Even as a WTO DSB meeting has been set this week, the Philippine government has also requested a meeting with Thailand to resolve remaining concerns on the matter.

A meeting notice posted on the WTO’s website showed that the customs and fiscal measures of Thailand on cigarettes from the Philippines will be among the items to be discussed by the DSB today.

Foreign Affairs Undersecretary Laura Quiambao-del Rosario said the Philippines’ permanent mission to the WTO has asked for a meeting with Thailand to discuss remaning issues on the latter’s compliance with the ruling.

“The request came from Geneva Ambassador (Esteban) Conejos, (Jr.)” she said.

She said the meeting may take place next month.

Earlier this month, the Philippines’ permanent mission to the WTO said that since February, it has yet to be informed of progress toward the resolution of the remaining inconsistencies.

In January, the Philippine Mission noted that the outstanding issues in the dispute include the ruling by the Thai Customs’ Board of Appeals that raises numerous concerns under the Customs Valuation Agreement and the GATT (General Agreement on Tariffs and Trade) 1994.

It also said Thailand’s reference to additional guidance from its Revenue Department concerning amended value-added tax rules raises questions of WTO-consistency.

The Philippine Mission has urged Thailand to pursue further bilateral engagement and has said that in the absence of such, it may take appropriate steps, possibly bringing back Thailand to arbitration.

The Philippine government filed a case against Thailand before the WTO after the latter charged higher duties on cigarettes from Philip Morris Philippines on suspicion of undervaluation of goods.

The WTO, through its ruling on the case, gave Thailand until May 15 of last year to implement reforms on customs valuation and taxes.