. /.   WORLD TRADE  
ORGANIZATION  WT/DS380/1/Add.1 
G/L/855/Add.1 
G/SCM/D79/1/Add.1 
17 December 2008 
 
 (08-6194) 
 Original:   English 
 
 
 
INDIA – CERTAIN TAXES AND OTHER MEASURES ON  
IMPORTED WINES AND SPIRITS 
 
Request for Consultations by the European Communities  
 
Addendum  
   The following communication, dated 15 Decembe r 2008, from the delegation of the European 
Communities to the delegation of India 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 re quests supplementary consultations
1 with India 
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes  (DSU) and Article XXII:1 of the General Agreement on Tariffs and Trade 1994  
(GATT 1994) regarding discriminatory taxation applie d on imported bottled wines by the Indian state 
of Karnataka.  These measures adversely affect expor ts of wines and spirits (codes 22.04, 22.05, 22.06 
and 22.08 of the Harmonised System) from the European Communities to India. 
Discriminatory taxation applied by the Indian State of Karnataka   
 The European Communities understands that th e State of Karnataka appears to apply the 
"additional special fee" and the "special fee" in a wa y that subjects imported wines to internal taxes in 
excess of domestic like products. Notification IV No FD 20 PES 2005 of 27 September 2008 
amending the Karnataka excise (excise duties and fees), Rules, 1968 sets a new "additional special 
fee" at the rate of 300 RS/per bulk litre for wine manufactured outside India and imported into Karnataka. The "additional special fee" is not app lied on domestic in-state lik e products. The "special 
fee" appears to tax imported bottled wines in  excess of domestic in-state like products.  
 The measures in question include but are not limited to: 
− The Karnataka Excise Act 1965; 
− The Karnataka excise (exci se duties and fees) rules 1968, as amended by the Karnataka 
excise (excise duties and fees) rules 2003 and Notification No FD 20 PES 2005 of 27 
September 2008, including Notification IV therein;  
− Notification  No FD 02 PES 2008 of 1 April 2008. 
                                                     
 
1 This request supplements the request of consultations entailed in document WT/DS380/1, G/L/855, 
G/SCM/D79/1 dated 25 September 2008 with regard to measures not mentioned in the latter request. WT/DS380/1/Add.1 
G/L/855/Add.1 G/SCM/D79/1/Add.1 
Page 2 
  
   The European Communities considers that  these measures are inconsistent with Article III , 
paragraph 2  of the GATT 1994. In particular: 
− The "additional special fee " is inconsistent with India's obligations under Article III:2 of 
the GATT 1994, because it subjects imported BIO bottled wines to internal taxes that are 
in excess of internal taxes applied on domestic like products; 
− The "special fee" is inconsistent with I ndia's obligations under Article III:2 of the 
GATT 1994, because it subjects imported BIO bottled wines to internal taxes that are in 
excess of internal taxes applied on domestic like products. 
 The European Communities considers that these measures also nullify or impair the benefits 
accruing to the European Communities under the GATT 1994. 
 For each of the measures referred to in this document, the request for consultations also 
covers any amendments, replacements, extensions , implementing measures and the related measures. 
 The European Communities reserves the right  to address additional measures and claims 
under other provisions of the WTO Agreement regard ing the above matters during the course of the 
consultations.  
 The European Communities looks forward to receiving in due course a reply from India to 
this request.  The European Commun ities is ready to consider with India mutually convenient dates to 
hold consultations. 
__________