WORLD TRADE  
ORGANIZATION  WT/DS370/1 
G/L/846 
G/VAL/D/10 
30 January 2008 
 (08-0445) 
 Original:   English 
  
 
THAILAND – CUSTOMS VALUATION OF CERTAIN PRODUCTS  
FROM THE EUROPEAN COMMUNITIES 
 
Request for Consultations by the European Communities
 
 
 
 The following communication, dated 25 January  2008, from the delegation of the European 
Communities to the delegation of Thailand and to th e Chairman of the Dispute Settlement Body, is 
circulated in accordance with  Article 4.4 of the DSU. 
 
_______________ 
 
 
The European Communities hereby requests consu ltations with Thailand pursuant to Article 4 
of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), 
Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ( GATT 1994) and Article 19 of 
the Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs 
Valuation) with respect to the way Thai custom s authorities value alcoholic beverages and other 
products from the European Communities. 
The European Communities understands that  the Thai customs authorities since 
September 2006 systematically challenge the declar ed transaction value of alcoholic beverages and 
other products from the European Communities import ed into Thailand and apply instead an arbitrary 
value.  This arbitrary value ("assessed value") is calculated by deducting (1) a standard margin of 
profit and general expenses and (2) the customs dut y and internal taxes paid from (3) the wholesale 
price of those goods in the Thai market, regardl ess of the transaction price provided by the importer. 
Broad standard margins of prof it and general expenses have been fixed by the Thai customs 
authorities on the basis of sources that have never been explained or disclosed. 
Where the shipments are tested and the declared  value is different from the "assessed value", 
the Thai Customs authorities will require a guarantee, or  if the amount is small, a cash payment, for an 
indefinite period of time.  The bank guarantee or c ash payment is set at the level of the difference 
between the duty (and taxes) on declared value and th e duty (and tax) amount on the "assessed value".  
This request is with respect to among others the following measures: 
− Customs Act, B.E. 2469;   
− Ministerial Regulation No. 132 (B.E. 2543); 
− Ministerial Regulation No.145 (B.E. 2547); 
− Ministerial Regulation No. 146 (B.E. 2550); 
− Customs Regulations No. 2/2550 (2007); WT/DS370/1 
G/L/846 G/VAL/D/10 
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  − Customs Notification No. 23 (B.E. 2549) and Customs Notification No. 14/2549;   
− Internal Customs Memorandum 0519/5555 date d 3 August 2006 from the Formality and 
Valuation Standard Group of the Customs Department; 
− Internal Customs Memorandum on Customs Va luation dated 22 August 2006 from the 
Formality and Valuation Standard Gr oup of the Customs Department;   
− Internal Customs Memorandum GorKor  0519/2266 dated 27 September 2006; 
− Customs Internal Memorandum 0519/2386 dated 6 October 2006; 
− The guidelines set out in the summary of M eeting on Guidelines on the Determination of 
the Rate of Profit and General Expenses fo r Tobacco, Alcohol and Beer products dated 
24 October 2006; 
− Customs Notification 29/2549 on Practice Rules of Duty Assessment Appeal;  
− the methodology of the Thai customs authorities for determining the customs value of 
alcoholic beverages and other products from the European Communities; and 
− the discriminatory tax treatment imposed on imported alcoholic beverages from the 
European Communities. 
For each of the measures referred to above, this request also covers any amendments, 
replacements, extensions, implementing measures or other related measures, inter alia  any act by 
Thailand that would confirm, ex tend, amend or otherwise affect the measures in question.  
The European Communities considers that the above-mentioned Thai la ws, regulations and 
implementing measures and methodologies for determining the customs value and the systematic challenge of the declared transaction values of impor ts of alcoholic beverage s and other products from 
the European Communities on the basis of these laws  and regulations and other acts or decisions are 
inconsistent with Thailand's obligations under th e WTO Agreements.  In particular, the European 
Communities considers these measures as inconsistent with:   
i) Articles I, II, III, X and XI of the GATT 1994;  
− Thailand is acting inconsistently with Artic le I:1 of the GATT 1994, by failing to accord 
an advantage, favour, privilege or immunity granted, with respect to customs duties and 
charges of any kind and with respect to the method of levying such duties and charges, 
and with respect to all rules and formaliti es in connection with importation to products 
originating in other countries immediatel y and unconditionally to the like products 
originating in the European Communities.   
− Thailand is acting inconsisten tly with Article II:1(a) and II:1(b) of the GATT 1994, by 
according treatment less favourable than that pr ovided in Thailand's Schedule.  Thailand 
is further acting inconsistently with Artic le II:3 of the GATT 1994 by altering its method 
of determining dutiable value so as to impair the value of any of the concessions 
provided for in the appropriate schedule.  WT/DS370/1 
 G/L/846 
 G/VAL/D/10 
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  − Thailand is acting inconsistently with Artic le III of the GATT 1994, in particular with 
Article III:2, first and second sentences,  and Article III:4 of the GATT 1994. 
− Thailand is acting inconsistently with Artic le X of the GATT 1994, in particular with 
Article X:1 and Article X:3 of the GATT 199 4, by not promptly publishing its laws, 
regulations, judicial decisions and administra tive rulings of general application and by 
not administering all laws, regulations, decisi ons and rulings in a uniform, impartial and 
reasonable manner. 
− Thailand is acting inconsisten tly with Article XI of the GATT 1994, by instituting and 
maintaining restrictions other than duties, taxes or other charges on the importation of 
products from the European Communities.  
ii) Article VII of the GATT 1994 and the provisi ons listed below of the Agreement on Customs 
Valuation and their respective Inte rpretative Notes as contained in A nnex I to that Agreement, and 
read in the context of the Ministerial Decision Regarding Cases Where Customs Administrations Have Reasons to Doubt the Truth or Accuracy of the Declared Value; 
− Thailand is acting inconsistently with Artic le VII of the GATT 1994, by not recognizing 
the validity of and giving effect to the ge neral principles of valuation set forth in 
Article VII, and by not basing the value for customs purposes on the actual value of the 
imported merchandise on which duty is assessed as well as by not keeping the bases and 
methods for determining the value of products  in a stable manner and by not giving 
sufficient publicity to enable traders to estim ate, with a reasonable degree of certainty, 
the value for customs purposes.  
− Thailand is acting inconsistently with Artic le 1.1 and 1.2 of the Agreement on Customs 
Valuation and its Interpretative Notes, by systematically disregarding the transaction 
value as the customs value of imported alc oholic beverages and other products from the 
European Communities and by not pro ceeding sequentially through the succeeding 
valuation methods set out in the Agreement on Customs Valuation (Articles 1 through 6). 
Furthermore Thailand is acti ng inconsistently with Artic le 1.2 of the Agreement on 
Customs Valuation and its Interpretative Notes by, if the customs administration considers that it has grounds for considering that the relationship influenced the price, 
not communicating the grounds to the importer and by not giving the importer a 
reasonable opportunity to respond. 
− Thailand is acting inconsistently with Artic le 5 of the Agreement on Customs Valuation 
and its Interpretative Notes, by not basing the customs value of the imported products on 
the unit price at which the imported goods are so ld subject to the deductions laid out in 
this provision. 
− Thailand is acting inconsistent ly with Article 11 of the Agreement on Customs Valuation 
and its Interpretative Notes, by not providi ng in regard to a determination of customs 
value for the right of appeal, without penalty, by the importer.  
− Thailand is acting inconsistently with Article 12 of the Agreement on Customs 
Valuation, by not publishing its laws, regulations, judicial decisions and administrative 
rulings of general application giving effect  to this Agreement in conformity with 
Article X of the GATT 1994.  WT/DS370/1 
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  − Thailand is acting inconsistent ly with Article 16 of the Agreement on Customs Valuation 
and the Decision Regarding Cases Where Customs Administrations Have Reasons to Doubt the Truth or Accuracy of the Declared Value, by not giving the importer an 
explanation in writing from the customs administration in Thailand as to how the 
customs value of the importer's goods was determined. 
− Thailand is acting inconsistently with Ar ticle XVI:4 of the Marrakesh Agreement 
establishing the World Trade Organization a nd Article 22 of the Agreement on Customs 
Valuation by not ensuring the conformity of its laws, regulations and administrative 
procedures with its obligations as provided in the WTO Agreements.  
The European Communities considers that the Thai measures also nullify or impair the 
benefits accruing to the European Communities under the GATT 1994.  
The European Communities reserves the right to address additional measures and claims 
under other provisions of the WTO Agreements rega rding the above matters during the course of the 
consultations. 
The European Communities looks forward to rece iving in due course a reply from Thailand to 
this request.  The European Comm unities is ready to consider with Thailand mutually acceptable 
dates to hold consultations. 
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