. /.   WORLD TRADE  
ORGANIZATION  WT/DS380/1/Add.2 
G/L/855/Add.2 
G/SCM/D79/1/Add.2 
6 May 2009 
 (09-2221) 
 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 4 May 2009, 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. 
 
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  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 discriminat ory taxation applied on imported bottled wines and spirits by the 
Indian state of Andhra Pradesh.  These measures adve rsely affect exports 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 Andhra Pradesh   
  The European Communities understands that the State of Andhra Pradesh applies the 
"assessment fee" in a way that subjects imported wines and spirits to internal taxes in excess of 
domestic like products. Government Orders G.O. Ms No 119 and G.O. Ms No 120 of 5 February 2009 
set a new "assessment fee" on imported wines and spirits, respectively.  The "assessment fee" appears to apply at rates which are inversely proportional to  the assessable value of imported wines and spirits 
and are set in the range of 100% to 15% ad valorem for imported wines and 200% to 60% ad valorem 
for imported spirits, respectively.  The "assessmen t fee" is not applied on domestic like products. 
Imported wines and spirits also a ppear to be subject to an "import fee" which does not apply to 
domestic like products.  
  The measures in question include but are not limited to:  
− The Andhra Pradesh Excise Act, 1968 (Andhr a Pradesh Act 17 of 1968), including 
sections 9, 21, 28;  
                                                     
 
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 as well as the supplementary request entailed in document WT/DS380/1/Add.1, G/L/855/Add.1, G/SCM/D79/1/Add.1 dated 17 December 2008 with regard to measures 
not mentioned in those requests. WT/DS380/1/Add.2 
G/L/855/Add.2 G/SCM/D79/1/Add.2 
Page 2 
  
  − The Andhra Pradesh Indian Liquor and Foreign Liquor rules, 1970; 
− The Andhra Pradesh Excise (Import, Export a nd transport of Indian Liquor and foreign 
Liquor–permits) Rules, 2005 (G.O. Ms No. 99 6, Revenue (Excise II) , 24 May 2005), as 
amended by Government Orders G.O. Ms  117 Revenue (Excise II) Department of 
5 February 2009, Government Orders G.O. Ms 118 Revenue (Excise II) Department of 
5 February 2009 G.O. Ms No 119 Revenue (E xcise-II) Department of 5 February 2009 
and Government Order G.O. Ms No 120 Revenue (Excise-II) Department of 
5 February 2009; 
− Government Order G.O. Ms No 184 Reve nue (Excise –II) of 7 February 2005. 
 The European Communities considers that  these measures are inconsistent with Article III , 
paragraph 2  of the GATT 1994.  In particular: 
 
− The "assessment fee" is inconsistent with India's obligations under Article III:2 of the 
GATT 1994, because it subjects imported BIO bottle d wines and spirits to internal taxes 
that are in excess of internal taxes applied on domestic like products; 
− The"import fee" is inconsistent with I ndia's obligations under Article III:2 of the 
GATT 1994, because it subjects imported BIO bottled wines and spirits 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.  
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