. /.   WORLD TRADE  
ORGANIZATION  WT/DS360/5 
25 May 2007 
 
 (07-2187) 
 Original:   English 
  
 
INDIA – ADDITIONAL AND EXTRA-ADDITIONAL DUTIES ON  
IMPORTS FROM THE UNITED STATES 
 
Request for the Establishment of  a Panel by the United States
 
 
 
 The following communication, dated 24 May 2007, from the delegation of the United States to the Chairman of the Dispute Settlement Body, is  circulated pursuant to Article 6.2 of the DSU. 
 
_______________ 
 
 
On 6 March 2007, the United States requested c onsultations with the Government of India 
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes  ("DSU") and Article XXII of the General Agreement on Tariffs and Trade 1994  
("GATT 1994"), with respect to "additional duties" a nd "extra additional duties" that India applies to 
imports from the United States.  The United States held consultations with India on 13 April 2007.  
Unfortunately, those consultations did not resolve the dispute.  
The additional duty and extra additional duty, individually and in combination, subject 
imports to ordinary customs duties or other duties or charges in excess of those in India's WTO Tariff 
Schedule.   The additional duty is calculated inclusive of, and applied in addition to, the basic customs 
duty.  The extra additional duty is calculated incl usive of, and applied in addition to, the basic 
customs duty and the additional duty.  As a result of  the additional duty and the extra additional duty, 
products from the United States are not exempt from  ordinary customs duties or other charges in 
excess of those set forth in India's WTO Tariff Sc hedule, and are accorded less favorable treatment 
than that provided for in India's WTO Tariff Sche dule.  Therefore, the United States considers the 
additional duty and the extra additiona l duty each to be inconsistent with Article II:1(a) and (b) of the 
GATT 1994.  India applies these duties to products that  include, but are not limited to, imports falling 
under Harmonized Tariff System (HTS) Codes 2203, 2204, 2205, 2206, and 2208 (beer, wine and distilled spirits, collectively referre d to as "alcoholic beverages"). 
 
Even if the additional duty and the extra additiona l duty were considered to be internal taxes 
applied at the time of importation, these duties subj ect imports from the United States to internal taxes 
in excess of those applied to lik e domestic products or directly co mpetitive or substitutable domestic 
products in breach of Article III:2 of the GATT 1994, and afford less favorable treatment to imported products than to like domestic products in  breach of Article III:4 of the GATT 1994.  
 
The United States understands that the relevant Indian measures include:  
• Chapter V of the Customs Act, 1962 
• Sections 2 and 3 of the Customs Tariff Act, 1975 ("basic customs duty," 
"additional duty" and "extra additional duty"); WT/DS360/5 
Page 2  
 
• First Schedule to the Customs Tariff Ac t, 1975 and any customs notifications 
issued under section 25 of the Customs Act, 1962 that set forth applied rates of basic customs duties for alcoholic beverages and other imports from the United States that differ from rates specified in the First Schedule including:  
• Customs Notification No. 5/2004 (8 January 2004) and Customs Notification 
No. 11/2005 (1 March 2005) ("basic customs duty" inter alia  on HTS 
code 2208, distilled spirits ); 
• Customs Notification No. 20/1997 (1 March 1997) ("basic customs duty" 
inter alia  on HTS codes 2203, 2204, 2205 and 2206, beer and wine); 
• Customs Notification No. 32/2003 (1 March 2003) ("additional duty" on 
alcoholic beverages); and 
• Customs Notification No. 19/2006 (1 March 2006) ("extra additional duty" 
inter alia on alcoholic beverages)   
 
as well as any amendments, related measures, or implementing measures. 
 
These measures appear to be inconsistent with  India's obligations under provisions of the 
GATT 1994, in particular with:  (1) Article II:1(b) of the GATT 1994, by imposing an additional duty on imports from the 
United States in addition to the basic customs duty applied to such imports that results in 
ordinary customs duties, or other duties or charges imposed on or in connection with importation, in excess of those set forth in India's WTO Tariff Schedule; 
 (2) Article II:1(a) of the GATT 1994, by imposi ng an additional duty on imports from the United 
States in addition to the basic customs duty app lied to such imports that accords less favorable 
treatment to such imports than provid ed for in India's WTO Tariff Schedule; 
 (3) Article II:1(b) of the GATT 1994, by imposi ng an extra additional duty on imports from the 
United States in addition to the basic customs duty on such imports that results, alone or in combination with the additional duty, in ordina ry customs duties, or other duties or charges 
imposed on or in connection w ith importation, in excess of those set forth in India's WTO 
Tariff Schedule; and 
 (4) Article II:1(a) of the GATT 1994, by imposi ng an extra additional duty on imports from the 
United States in addition to the basic cust oms duty on such imports, that, alone or in 
combination with the additional duty, accords l ess favorable treatment to such imports than 
provided for in India's WTO Tariff Schedule;  
 and to the extent that the measures impose an in ternal tax or other char ge on imported products, 
 
(5) Article III:2 of the GATT 1994;  and 
 (6) Article III:4 of the GATT 1994.  
In addition, India's measures appear to nullif y or impair the benefits accruing to the 
United States directly or indirectly under the GATT 1994. 
 
Accordingly, the United States respectfully request s, pursuant to Article 6 of the DSU, that 
the Dispute Settlement Body establish a panel to ex amine this matter, with the standard terms of 
reference as set out in Article 7.1 of the DSU. 
__________