. /.  WORLD TRADE  
ORGANIZATION   
WT/DS371/15 
13 April 2012  
 
(12-1922) 
 Original:   English 
  
 
THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES 
FROM THE PHILIPPINES 
 
Status Report by Thailand 
 
 
 The following communication, dated 10 April 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. 
 
_______________ 
 
 
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 Th ailand hereby provides with the following a status 
report in writing of its progress in the impl ementation of the recommendations or rulings. 
 
Regarding the Panel's findings under the Cust oms Valuation Agreement, Thai Customs is 
revising its regulations on the de termination of customs value us ing the transaction value and the 
deductive value methods, pursuant to Articles 1 and 5 of the Customs Valuation Agreement 
respectively.  Draft regulations are currently be ing reviewed internally  before publication. 
 WT/DS371/15 
Page 2  
 
  Regarding the customs valuation of the speci fic entries of merchandise listed in the 
Philippines' request for the establishment of a pa nel (see Annex 1 of WT/DS371/3, 6 October 2008) 
and the specific entries involved in the Philippines'  claims under Article X:3 of the GATT 1994, Thai 
Customs is in the process of re-valuing these entries in line with the panel's rulings and 
recommendations.  Both cases were considered at  a meeting of the Customs Valuation Appeal 
Sub-Committee on 28 February 2012 and will be finally  considered by the Customs Valuation Appeal 
Committee by the end of the reasonable period of time.   
Regarding the Panel's rulings and recomme ndations concerning the establishment of 
maximum retail selling prices ("MRSPs") for the sale of cigarettes in Thailand, the Thai Excise 
Department is reviewing internally  draft regulations implementing the panel's findings with regard to 
the MRSPs.  New regulations are expected to be published by the end of the reasonable period of 
time.     
Regarding the Panel's and the Appellate B ody's findings concerning the administrative 
requirements for VAT reporting for re-sales of impo rted and domestic cigarettes, the Thai Revenue 
Department is preparing draft legislation that w ill ensure that the same VAT requirements apply to 
re-sales of both imported and domestic cigarettes. 
  
Regarding the Panel's findings with respect to delays in the appeal process for customs 
valuation determinations, Thai Cust oms is adopting new rules to prevent delays in the appeal process. 
  
Regarding the Panel's and the A ppellate Body's findings that Thailand failed to maintain an 
independent review process for the purpose of provi ding prompt review of decisions to require 
customs guarantees on clearance of goods pending dete rmination of the customs value, Thailand is 
establishing an independent review body with au thority to review guarantee decisions.   
  
Regarding the Panel's finding that Thailand faile d to properly publish the rules regarding the 
release of guarantees, Thai Customs will re-publish th is rule in a manner consistent with the panel's 
findings.    
Thailand expects to complete each of the ac tions described above within the reasonable 
periods of time previously agreed. 
  
Thailand will consult with interested parties as it works to address the recommendations and 
rulings of the DSB.  
 
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