THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES FROM THE PHILIPPINES
Document: Understanding between the Philippines and Thailand Regarding Procedures under Articles 21 and 22 of the DSU
Date: 7 June 2012
Document codes: WT/DS371/16
Complainant: Philippines
Respondent: Thailand
Third parties: Australia, China, EU, India, Taiwan, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. 13, 10  Customs valuationArt. X:3, II:1(b), II:3  GATT 1994Art. 2, 3, 4, 5, 6, 7, 1.1, 1.2  Customs valuationArt. VII:1, VII:2, VII:5  GATT 1994Art. 16  Customs valuationArt. X:1, III:2, III:4  GATT 1994

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 (WT/DS371).

We request that you please circulate the attached agreement to the Members of the Dispute
Settlement Body.

Understanding between the Philippines and Thailand on Sequencing

The Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the
dispute (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.

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.