Document: WT/DS269/R Page E-1 ANNEX E REQUESTS FOR THE ESTABLISHMENT OF A PANEL Contents Page Annex E-1 Request for the Establishmen t of a Panel by Brazil (WT/DS269/3) E-2 Annex E-2 Request for the Establishment of a Panel by Thailand (WT/DS286/5)
Document codes: WT/DS269/R; WT/DS269/3; WT/DS286/5
Complainant: Brazil
Respondent: EU
Third parties: China, Thailand, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. II:1, XXIII  GATT 1994

ANNEX E

REQUESTS FOR THE ESTABLISHMENT OF A PANEL

Contents Page
Annex E-1 Request for the Establishmen t of a Panel by Brazil ()

E-2
Annex E-2 Request for the Establishment of a Panel by Thailand ()

E-4

ANNEX E-1

REQUEST FOR THE ESTABLISHMENT OF PANEL BY BRAZIL

EUROPEAN COMMUNITIES – CUSTOMS CLASSIFICATION OF
FROZEN BONELESS CHICKEN CUTS

Request for the Establishment of a Panel by Brazil

 The following communication, dated 19 September 2003, from the Permanent Mission of
Brazil to the Chairman of the Dispute Settlement Bo dy, is circulated pursuant to Article 6.2 of the
DSU.

 On 11 October 2002, Brazil requested consulta tions with the European Communities (EC)
pursuant to Article 4 of the Understanding on Ru les and Procedures Governing the Settlement of
Disputes (DSU) and Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT 1994).
That request was circulated to the WTO Members on 16 October 2002 as document ,
"European Communities – Customs Classification of Frozen Boneless Chicken Cuts". On
5 December 2002 and on 19 March 2003, Brazil and the EC held consultations in Geneva with a view
to reaching a mutually agreed solution. Unfortunately, consultations failed to settle the dispute.

 Therefore, Brazil hereby requests that a Panel be established pursuant to Article 6 of the DSU
and Article XXIII of the GATT 1994,with standard terms of reference as set out in Article 7 of the
DSU.

 The specific measures at i ssue are Commission Regulation (EC) No. 1223/2002, published in
the Official Journal of the EC on 9 July 2002, concerning the classification of certain goods in the
Combined Nomenclature (CN), and the EC Commission Decision, published in the Official Journal of
the EC on 12 February 2003, concerning the validity of certain binding tariff information (BTI) issued
by the Federal Republic of Germany.

 Regulation No. 1223/2002 provides a new d escription for the product under the CN code
0207.14.10. By virtue of Regul ation No. 1223/2002, goods descr ibed as "Boneless chicken cuts,
frozen and impregnated with salt in all parts. They have a salt content by weight of 1,2% to 1,9%.
The product is deep-frozen and has to be stored at te mperature of lower than -18°C to ensure a shelf-
life of at least one year." are now classified under CN code 0207.14.10. Products under CN code
0207.14.10 are subject to a tariff of 102.4 €/100kg/net.

 Prior to Regulation No. 1223/2002, the product "boneless chicken cuts, frozen and
impregnated with salt in all parts", was classi fied as salted meat under CN code 0210.99.39.
Products under CN code 0210.99.39 are subject to an ad valorem duty of 15.4%. Subsequent to the
issuance of Regulation No. 1223/2002, the Commission of the EC published a Decision addressed to
the Federal Republic of Germany reporting that all BT Is previously issued by Member States, which
classified the products concerned as salted meat of CN code 0210, ceased to be valid. In particular,
this Decision informed that Germany had err oneously issued BTIs classifying frozen products
containing between 1.9% and 3% of salt under CN code 0210. The reason gi ven was that products
"consisting of boneless chicken cuts which have been frozen for long-term conservation and have a
salt content of 1.9% to 3% are similar to the pr oducts covered by Regula tion (EC) No. 1223/2002".
According to the Commission of the EC, "[t]he add ition of salt in such quantities is not such as to
alter the products' character as frozen poultry meat of heading 0207". Thus, the Commission Decision
instructed Germany to withdraw the BTIs issued on frozen poultry meat containing between 1.9% and
3% of salt.

 As a result of these measures, the product boneless chicken cuts, frozen with a salt content of
1.2% or more, which was previously classified as salted meat, is now classified as frozen chicken,
subject to a tariff rate in excess of the bound ra te for salted meat in the EC's Schedules under
GATT 1994.

 Accordingly, Brazil considers that its commerce of salted chicken to the EC has been
accorded treatment less favourable than that pr ovided in the EC Schedule for the product, in
contravention of the EC's obligations under Artic les II:1(a) and II.1(b) of the GATT 1994. These EC
measures produce distortions in trade, which nullify and impair, within the meaning of GATT
Article XXIII, benefits accruing to Brazil under the GATT 1994.

 Brazil asks that this request for the establishm ent of a Panel be placed on the agenda of the
next meeting of the Dispute Settlement Body, which is scheduled to take place on 2 October 2003.

ANNEX E-2

REQUEST FOR THE ESTABLISHMENT OF PANEL BY THAILAND

28 October 2003
 (03-5735)
 Original: English

EUROPEAN COMMUNITIES – CUSTOMS CLASSIFICATION OF
FROZEN BONELESS CHICKEN CUTS

Request for the Establishment of a Panel by Thailand

 The following communication, dated 27 Oc tober 2003, from the Permanent Mission of
Thailand to the Chairman of the Dispute Settlement Bo dy, is circulated pursuant to Article 6.2 of the
DSU.

 On 25 March 2003, 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"), the Kingdom of Thaila nd ("Thailand") requested consultations with
the European Communities ("EC") with respect to the EC's customs classification of frozen boneless
salted chicken cuts. That request was circulat ed to WTO Members on 31 March 2003 in document
WT/DS286/1. On 21 May 2003, Thailand and the EC held consultations in Ge neva with a view to
reaching a mutually agreed soluti on. Unfortunately, consultations failed to settle the dispute.
Thailand therefore requests the establishment of a panel pursuant to Article 6 of the DSU and
Article XXIII of the GATT 1994.

 The measure at issue is the classification of frozen boneless salted chicken cuts as provided in
the EC Regulation No.1223/2002 of 8 July 2002 ("Re gulation 1223/2002") published in the Official
Journal of the EC on 9 July 2002 concerning the classification of certain goods in the Combined
Nomenclature (CN) and elaborated in the EC Commission Decision ("Decision") of 31 January 2003
published in the Official Journal of the EC on 12 February 2003 concerning the validity of certain
binding tariff information ("BTI") issued by the Federal Republic of Germany.

 Regulation 1223/2002 establishes a new descr iption for products falling under CN Code
0207.14.10. By virtue of Regul ation 1223/2002, goods described as "[b]oneless chicken cuts
impregnated with salt in all parts. They have a sa lt content by weight of 1,2% to 1,9%. The product
is deep-frozen and has to be stored at a temperature of lower than -18° C to ensure a shelf-life of at
least one year" are now classified under CN Code 0207.14.10. Products under CN Code 0207.14.10
are subject to a tariff of 102.4 Euros per 100 kg/net.

 Prior to Regulation 1223/2002, frozen boneless ch icken cuts impregnated with salt in all parts
were classified as salted meat under CN code 0210. 99.39. Products under CN Code 0210.99.39 are
subject to an ad valorem duty of 15.4%.

 Subsequent to the issuance of Regulation 1223/2002, the EC Commission published a
Decision addressed to the Federal Republic of Germ any noting that BTIs previously issued by
Member States which classified the products c oncerned as salted meat under heading 0210 ceased to
be valid. The Decision further noted that Germany had subsequently issued BTIs classifying frozen
boneless chicken cuts with a salt content of 1.9% to 3% under heading 0210. The Decision stated that
"the products also consisting of boneless chicke n cuts which have been frozen for long-term
preservation and have a salt content of 1,9% to 3% are similar to the products covered by Regulation
(EC) 1223/2002. The addition of salt in such quantiti es is not such as to alter the products' character
as frozen poultry meat of heading 0207." Therefor e, the Commission Decision instructed Germany
to withdraw the BTIs issued on frozen poultry meat with a salt content between 1.9% and 3%.

 As a result of this measure, the product classifi ed as frozen boneless chicken cuts with a salt
content of 1.2% or more, which was previous ly been classified as salted meat at the ad valorem rate
of 15.4%, is now classified as frozen chicken subject to a tariff rate in excess of the bound rate for
salted meat in the EC's Schedule of Concessions (Schedule LXXX) under the GATT 1994.

 In the view of Thailand, its exports of salted chicken to the EC are being accorded treatment
less favourable than that provided in the EC Schedul e in contravention of the EC's obligations under
Articles II:1(a) and II:1(b) of the GATT 1994. The EC measure creates distortions in trade that
nullify or impair, within the meaning of Article XXIII, the benefits accruing to Thailand under the
GATT 1994.

 Thailand requests that a panel be established with standard terms of reference at the meeting
of the Dispute Settlement Body to be held on 7 November 2003.