. /.  WORLD TRADE  
ORGANIZATION   
WT/DS371/15/Add.2 
15 June 2012 
 (12-3149) 
 Original:   English 
  
 
THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES 
FROM THE PHILIPPINES 
 
Status Report by Thailand 
 
Addendum 
 
 
 The following communication, dated 14 June 2012, from the delegation of Thailand to the 
Chairperson of the Dispute Settlement Body, is ci rculated pursuant to Article 21.6 of the DSU. 
 
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Status Report Regarding Implementation of the 
DSB Recommendations and Rulings in the Dispute 
Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines  
(WT/DS371) 
 
 
Thailand submits this report in accordance with Article 21.6 of the Understanding on Rules 
and Procedures Governing the Settlement of Disputes  ("DSU"). 
  
At its meeting on 15 July 2011, the Dispute Se ttlement Body ("DSB") adopted the Appellate 
Body report on Thailand – Customs and Fiscal Measures  on Cigarettes from the Philippines  
(WT/DS371/AB/R) and the Panel report (WT/DS371/R), as modified by the Appellate Body report.   
  
On 23 September 2011, pursuant to Article 21.3( b) of the DSU, Thailand and the Philippines 
notified the DSB that they had mutually agreed on the reasonable period of time for Thailand to 
comply with the recommendations and rulings of the DSB.  With respect to the DSB's recommendations and rulings regardin g paragraphs 8.3(b) and (c) of the panel report, the reasonable 
period of time to comply was 15 months, expiring on 15 October 2012.  With respect to the DSB's 
recommendations and rulings regarding all other me asures, the reasonable period of time to comply 
shall be 10 months, expiring on 15 May 2012.   
Article 21.6 of the DSU provides that the issu e of implementation of the recommendations or 
rulings shall be placed on the agenda of the DSB meeting after six months following the date of 
establishment of the reasonable period of time pursuant to paragraph 3 and shall remain on the DSB's 
agenda until the issue is resolved .  Accordingly, Thailand hereby provides the following status report 
of its progress in the implementation of  the DSB's recommendations and rulings. 
 
On 10 April 2012, Thailand submitted to the DSB it s first status report under Article 21.6 of 
the DSU on its progress in the implementation of the DSB's recommendations and rulings in this 
matter.  This report was circulated to Members as document WT/DS371/15, dated 13 April 2012.  On WT/DS371/15/Add.2 
Page 2  
 
  11 May 2012, Thailand submitted to the DSB its sec ond status report, which was circulated to 
Members as document WT/DS371/15/Add.1, dated 14 May 2012.  
More recently, in its statement at the mee ting of the DSB on 24 May 2012, Thailand provided 
a detailed explanation of the status of its implem entation of the DSB's recommendations and rulings.  
Thailand refers Members to that statement.  Since the DSB meeting on 24 May 2012, Thailand has 
issued the Customs Regulation on Administra tion Regarding the Customs Guarantees, which 
establishes an independent review process for the re view of decisions to require customs guarantees 
on clearance of goods pending final determination of  the customs value.  The review process is 
effective as of 13 June 2012.  The Customs Department is also  continuing to accelerate the 
consideration of the Board of Appeals with regard to the customs valuation of the specific entries of 
merchandise listed in the Philippines' request for th e establishment of a panel and the entries involved 
in the Philippines' claim under Article X:3 of the GATT 1994.  
Regarding the findings concerning the administrative requirements for VAT reporting for re-
sales of imported and domestic cigarettes, the Counc il of State has finished its review of the draft 
Royal Decree issued under the Revenue Code.  The Re venue Department is currently in the process of 
confirming the changes made by the Council of Stat e.  The Decree will then be submitted to and 
considered by the Parliament.  Thailand expects that  the Decree will be in effect by the end of the 
agreed reasonable period of time for implementation on these items, which expires on 15 October 2012. 
 
Thailand will continue to provide Members with further details in future status reports.   
 
Thailand also notes that on 1 June 2012, it concluded a sequencing agreement with the 
Philippines covering the recommendations and rulings  for which the reasonable period of time was 
10 months, expiring on 15 May 2012.  This se quencing agreement was circulated to Members on 
7 June 2012 as document WT/DS371/16.  
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