. /.   WORLD TRADE  
ORGANIZATION  WT/DS352/4 
27 March 2007 
 
 (07-1276) 
 Original:   English 
  
 
INDIA – MEASURES AFFECTING THE IMPORTATION AND SALE 
OF WINES AND SPIRITS FROM THE EUROPEAN COMMUNITIES 
 
Request for the Establishment of a Panel by the European Communities
 
 
 
 The following communication, dated 23 March 2007, from the delegation of the European Communities to the Chairman of the Dispute Settlement  Body, is circulated pursuant to Article 6.2 of 
the DSU.  
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  The European Communities hereby requests the establishment of a panel pursuant to 
Articles 4.7 and 6 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes  ("DSU") and Article XXIII of the General Agreement on Tariffs and Trade 1994  
("GATT 1994"). 
  This request concerns measures that adversely affect exports of wines and spirits (codes 2204, 
2205, 2206 and 2208 of the Harmonised System) from the European Communities to India.  
Specifically, this request concerns the following measures: 
 
 – Sections 2 and 3, and Schedule 1,  of the1975 Customs Tariff Act;   
  – Customs Notification No. 5/2004 of 8 January 2004 on Basic Customs Duty applied 
to spirits (code 2208 of the Harmonised System); 
 
 – Customs Notification No. 20/1997 of 1 March 1997 on Basic Customs Duty applied 
to wines (codes 2204, 2205 and 2206 of the Harmonised System); 
  – Customs Notification No. 32/2003 of 1 March 2003 on Additional Duty applied to 
wines and spirits (codes 2204, 2205, 2206 and 2208 of the Harmonised System);  and 
 
 – Customs Notification No. 19/2006 of 1 March 2006 (on Extra Additional Duty 
applied to, inter alia , codes 2204, 2205, 2206 and 2208 of the Harmonised System). 
  For each of the measures referred to above, this request also covers any amendments, 
replacements, extensions, implementing measures or other related measures.   
  Under Section 2 and Schedule 1 of the 1975 Customs Tariff Act, India applies a Basic Customs Duty to imported wines and spirits (codes 2204, 2205, 2206 and 2208 of the Harmonised 
System).  The Basic Customs Duty is applied pursuant to Customs Notification No. 20/1997 of 1 March 1997 to wines (codes 2204, 2205 and 2206) at a level of 100% ad valorem  and pursuant to 
Customs Notification No. 5/2004 of 8 January 2 004 to spirits (code 2208) at a level of 150% 
ad valorem .  Under Section 3 and Schedule 1 of the 1975 Customs Tariff Act, India also applies an WT/DS352/4 
Page 2  
 
  Additional Duty and an Extra Additional Duty to im ported wines and spirits.  The Additional Duty is 
applied pursuant to Customs Notification No. 32/20 03 of 1 March 2003 to wines at levels ranging 
from 20% to 75% (depending on the customs value of the wines imported), and to spirits at levels from 25% to 150% (depending on the customs value of  the spirits imported).  The Additional Duty is 
applied to the aggregate of customs value and B asic Customs Duty.  The Extra Additional Duty is 
applied pursuant to Customs Notific ation No. 19/2006 of 1 March 2006 to wines and spirits at a level 
of 4% ad valorem .  The Extra Additional Duty is applied to  the aggregate of customs value, Basic 
Customs Duty and Additional Duty.  The aggregate duty level resulting from the application of the Basic Customs Duty, the Additional Duty and the Extra Additional Duty ranges from 177.33% to 264% for imported wines and from 252.22% to 550% for imported spirits.  Those aggregate duty 
levels exceed the bound level of 150% ad valorem  for wines and spirits set forth in the WTO tariff 
schedule of India.     These measures nullify or impair the European Communities benefits in respect of India's 
obligations under the GATT 1994.  In particular, Indi a has acted inconsistently  with Article II:1(a) 
and (b), read in conjunction with Article III: 2 of the GATT 1994, by failing to accord to the 
commerce of another Member treatment no less favourab le than that provided for in India's tariff 
schedule annexed to the WTO Agreement.  Indi a has failed to exempt products, which are the 
products of territories of another Member, on their importation into India's territory, from ordinary 
customs duties in excess of those set forth and provided in India's schedule.   
 Further details on these measures and on the ma nner in which they nullify or impair the 
European Communities benefits in respect of I ndia's obligations under the GATT 1994 may be found 
in the document entitled "Report to the Trade Barri ers Regulation Committee, Examination Procedure 
Concerning an Obstacle to Trade, within the Meaning of Council Regulation (EC) No 3286/94, Consisting of Trade Practices Maintained by India Affecting Trade in Wines and Spirits, Complaint 
Submitted by the European Spirits Organisation (C EPS) and the Comité Européen des Enterprises 
Vins (CEEV)" which is available at http://ec.europa.eu/trade/issues /respectrules/tbr/cases/ind_alc.htm
. 
  On 20 November 2006, the European Communities requested consultations with India with a 
view to reaching a mutually satisfactory solution of the matter.  The request was circulated in 
document WT/DS352/1 dated 23 November 2006.  The consultations were held on 20 and 
21 December 2006 in New Delhi on the above-men tioned measures.  They have not led to a 
satisfactory resolution of the matter.     Therefore, the European Communities respectfully  requests that a panel be established, with 
standard terms of reference under Ar ticle 7 paragraph 1 of the DSU, to consider the above complaint 
with a view to finding that India's measures nullify or  impair the EC's benefits in respect of India's 
obligations under Article II:1(a) and (b), read in conjunction with Article III:2, of the GATT 1994.  
 
 The European Communities asks that a special meeting of the Dispute Settlement Body be 
convened on Wednesday 11 April 2007 and that this request for the establishment of a panel be placed 
on the agenda of that meeting. 
 
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