. /.WORLD TRADE
ORGANIZATIONWT/DS269/1
16 October 2002
(02-5593)
Original:  English
EUROPEAN COMMUNITIES - CUSTOMS CLASSIFICATION OF
FROZEN BONELESS CHICKEN CUTS
Request for Consultations by Brazil
The following communication, dated 11October 2002, from the Permanent Mission of Brazil
to the Permanent Delegation of the European Commission and to the Chairman of the DisputeSettlement Body, is circulated in accordance with Article 4.4 of the DSU.
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Upon instruction from my authorities, I hereby wish to convey the request of the Government
of Brazil for consultations with the European Communities (EC) pursuant to Article 4 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and
Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT 1994).
The measure at issue is EC Commi ssion Regulation No. 1223/2002 (Regulation
No. 1223/2002), of 8 July 2002, which provides a ne w description of the product under the Combined
Nomenclature (CN) code 0207.14.10.  This new description includes a salt content to the product that
did not exist prior to Regulation No. 1223/2002 and subjects the imports of these products to a higher
tariff than that applicable to salted meat (CN code 0210) in the EC's Schedules under GATT 1994.
Prior to Regulation No. 1223/2002, customs authorities in the EC have classified frozen,
boneless cuts of poultry impregnated with salt in all parts, with a salt content by weight of 1,2%,
under the CN code 0210.99.39, for other salted meat.  Under CN code 0210, imports of frozen,
boneless cuts of poultry with salt  of 1,2% by weight from Brazil were subject to an ad valorem  tariff
rate of 15,4%.
Still prior to Regulation No. 1223/2002, frozen, boneless poultry cuts without salt were
classified by the EC's customs authorities under CN code 0207.14.10.  In fact, the description of the
product under CN code 0207.14.10 did not provide for salt or its content. Imports of frozen, boneless
poultry cuts without salt from Brazil, classified under this code, were subject to a tariff rate of
102,4 €/100kg/net.
Regulation No. 1223/2002 has included a new description of the product under CN code
0207.14.10.  Goods under CN code 0207.14.10 are now described as "boneless chicken cuts, frozen
and impregnated with salt in all parts. They have a salt content by weight of 1,2% to 1,9%.  The
product is deep-frozen and has to be stored at temperature of lower than - 18°C to ensure a shell-lifeof at least one year".  With Regulation No. 1223/2002 the EC has included salt as part of the
description of the product under code 0207.14.10.
Regulation No. 1223/2002 automatically forces products that were previously imported under
CN code 0210.99.39, and subject to an ad valorem  tariff rate of 15,4%, to be classified under CN code
0207.14.10, and subject to a higher tariff rate of 102,4 €/100kg/net.  This tariff rate ofWT/DS269/1
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102,4 €/100kg/net is in excess of the tariff rate for salted meat (CN code 0210) provided for in the
EC's Schedules under GATT 1994.
As a result of this measure, Brazil considers that its commerce has been accorded treatment
less favorable than that provided in the EC Schedu les, in contravention of the obligations of the EC
under Articles II and XXVIII of the GATT 1994.
In addition, the application of this measure by  the EC nullifies and impairs, within the
meaning of GATT Article XXIII:1, benefits accruing to Brazil directly or indirectly under the GATT
1994.
The Government of Brazil reserves the right to raise additional factual or legal points related
to the aforementioned measure during the course of consultations and looks forward to receiving in
due course a reply to this request, in order to fix a mutually convenient date for the consultations.
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