WORLD TRADE  
ORGANIZATION   
WT/DS371/16 
7 June 2012  
 
(12-3005) 
 Original:   English 
  
 
THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES 
FROM THE PHILIPPINES 
 
Understanding between the Philippines and Thailand 
Regarding Procedures under Articles 21 and 22 of the DSU 
   The following communication, dated 1 June 2012,  from the delegation of the Philippines and 
the delegation of Thailand to the Chairperson of the Dispute Settlement Body, is circulated at the 
request of these delegations. 
 
_______________ 
 
 
The Philippines and Thailand would like to in form the Dispute Settlement Body of the 
attached "Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding ” 
between the Philippines and Thailand  with respect to the dispute Thailand – Customs and Fiscal 
Measures on Cigarettes from the Philippines (WT/DS371). 
  
We request that you please circulate the attached  agreement to the Members of the Dispute 
Settlement Body. 
 
 WT/DS371/16 
Page 2  
 
  Understanding between the Philippines and Thailand on Sequencing  
 
 
The Dispute Settlement Body ("DSB") adopted  its recommendations and rulings in the 
dispute Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines  (WT/DS371) on 
15 July 2011. 
Pursuant to Article 21.3(b) of the Unders tanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU") the Philippines and Thailand agreed that the reasonable period of 
time to implement the DSB's recommendations and ruli ngs regarding paragraphs 8.1, 8.2, 8.3(a) and 
8.4 of the panel report would be 10 months, expiring on 15 May 2012. 
The Philippines and Thailand hereby agree on the following procedures for the exclusive 
purpose of sequencing proceedings under Articles 21. 5 and 22.6 of the DSU regarding Thai measures 
taken to comply, if any, with respect to the recommendations and rulings in the aforementioned 
paragraphs of the panel report: 
1. Should the Philippines consider that the situation described in Article 21.5 of the DSU exists, 
the Philippines may at any time request consulta tions, which the parties to the dispute will 
hold within 15 days from the date of circulati on of such request.  After this 15-day period has 
elapsed, the Philippines may requ est the establishment of a panel pursuant to Article 21.5 of 
the DSU at any time. 
  2. In the event that the Philippi nes requests the establishment of an Article 21.5 panel, Thailand 
shall not object to the establishment of that panel at the first DSB meeting at which the 
request appears on the agenda. 
 3. The parties to the dispute shall cooperate to en able the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, excluding any such time during which the panel's 
work may be suspended pursuant to Article 12.12 of the DSU. 
 4. Either party to the dispute may request the DS B to adopt the report of the Article 21.5 panel at 
a DSB meeting held at least 20 days after the circulation of the report to the Members, unless either party appeals the report.  
 
5. In the event of an appeal against the Article 21.5 panel report, the parties to the dispute shall 
cooperate to enable the Appellate Body to circ ulate its report to the Members within no more 
than 90 days from the date of notification of the appeal to the DSB. 
 6. In the event of an appeal, either party to th e dispute may request the DSB to adopt the reports 
of the Appellate Body and the Article 21.5 pane l (as modified by the Appellate Body report) 
at a DSB meeting held within 30 days of the ci rculation of the Appellate Body report to the 
Members. 
 7. The Philippines may request authorization to suspend concessions or other obligations 
pursuant to Article 22.2 of the DSU in the ev ent that the DSB rules, as a result of a 
proceeding under Article 21.5 of the DSU, that a measure taken to comply does not exist or is 
inconsistent with a covered agreement.  Th ailand shall not assert that the Philippines is 
precluded from obtaining such DSB authorization because its request was made outside the time period specified in the first sentence of Article 22.6 of the DSU.  This is without 
prejudice to Thailand’s right to have the matter  referred to arbitration in accordance with 
Article 22.6 of the DSU. 
  WT/DS371/16 
 Page 3 
 
 
  8. If the Philippines requests authorization to su spend concessions or other obligations pursuant 
to Article 22.2 of the DSU, Thailand shall have  the right to object under Article 22.6 of the 
DSU to the level of suspension of concessions or other obligations a nd/or claim that the 
principles and procedures set forth in Article 22.3 of the DSU have not been followed.  In the 
event of such objection, the matter will be refe rred to arbitration pursuant to Article 22.6 of 
the DSU. 
9. The parties to the dispute agree that th is agreement addresses only the sequencing of 
proceedings under Articles 21.5 and 22.6 of the DSU and does not otherwise affect the rights 
and obligations of either party under Articles 21 and 22 of the DSU. 
10. The parties to the dispute will cooperate to en able the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration. 
11. If any of the original panelists  is not available for either the Article 21.5 panel or the Article 
22.6 arbitration (or both), or any person ser ving in either such proceeding becomes 
unavailable to serve, the parties to the dispute  will promptly consult on a replacement, and 
either party may request the Director-General of the WTO to appoint, within ten days of 
being so requested, a replacement for the proceed ing in which a replacement is required.  If 
an original panelist is unavailable to serve in  the Article 21.5 proceeding, or a person serving 
in that proceeding becomes unavailable to serve, the parties to the dispute will further request 
that, in making this appointment, the Director-G eneral seek a person who will be available to 
act in both the Article 21.5 and Article 22.6 proceedings. 
12. The parties to this dispute  will continue to cooperate in a ll matters related to these agreed 
procedures  and agree not to raise any procedural objec tion to any of the steps set out herein.  
If, during the application of these procedures, the parties to the dispute consider that a 
procedural aspect has not been properly addressed in these procedures, they will endeavor to 
find a solution within the shortest time possible that will not affect the other aspects and steps 
agreed herein.  
 
  
For the Philippines 
  
 
 
(Signed) 
José Victor Chan-Gonzaga 
Chargé d’Affaires, a.i.  For Thailand 
  
 
 
(Signed) 
Nisa Srisuworanant   
Chargé d’Affaires, a.i.  
 
 
 
 
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