INDIA – ADDITIONAL AND EXTRA-ADDITIONAL DUTIES ON IMPORTS FROM THE UNITED STATES
Document: Request for Consultations by the United States
Date: 12 March 2007
Document codes: WT/DS360/1; G/L/817
Complainant: U.S.
Respondent: India
Third parties: Australia, Chile, EU, Japan, Vietnam
Dispute stage: Appellate Body
Agreements cited: Art. II:1, III:2, III:4  GATT 1994

INDIA – ADDITIONAL AND EXTRA-ADDITIONAL DUTIES ON
IMPORTS FROM THE UNITED STATES

Request for Consultations by the United States

 The following communication, dated 6 March 2007, from the delegation of the United States
to the delegation of India and to the Chairman of the Dispute Settlement Body, is circulated in
accordance with Article 4.4 of the DSU.

My authorities have instructed me to request consultations with the Government of India
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes and Article XXII of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"), with
respect to "additional duties" and "extra additional duties" that India applies to imports from the
United States.

These duties appear to subject imports to ordinary customs duties or other duties or charges in
excess of those in India's WTO Tariff Schedule. Acco rdingly, as a result of the duties, products from
the United States do not appear to be exempt from or dinary customs duties or other charges in excess
of those set forth in India's WTO Tariff Schedule a nd appear to be accorded less favourable treatment
than that provided for in India's WTO Tariff Sche dule. The duties, therefore, appear to be
inconsistent with Article II:1(a) and (b) of the GAT T 1994. India applies these duties to products that
include, but are not limited to, imports of win es and distilled spirits (Harmonized Tariff System
Codes 2204, 2205, 2206, and 2208).

Even if these duties were considered to be inte rnal taxes applied at the time of importation,
the duties appear to subject imports from the United States to internal taxes in excess of those applied
to like domestic products or directly competitive or substitutable domestic products in breach of
Article III:2 of the GATT 1994 and to afford less fa vourable treatment to imported products than to
like domestic products in breach of Article III:4 of the GATT 1994.

The measures through which India has provided such treatment include:

• Sections 2 and 3, and First Schedule, of the Customs Tariff Act, 1975 ("basic
customs duty," "additional duty" and "extra additional duty");

• Section 12 of the Customs Act, 1962 ("basic customs duty");

• Customs Notification No. 5/2004 (8 January 2004) ("basic customs duty"
inter alia on spirits);

• Customs Notification No. 20/1997 (1 March 1997) ("basic customs duty"
inter alia on wine);

• Customs Notification No. 32/2003 (1 March 2003) ("additional duty"
inter alia on wine and spirits); and

• Customs Notification No. 19/2006 (1 March 2006) ("extra additional duty"
inter alia on wine and spirits)

as well as any amendments, related measures, or implementing measures.

 These measures appear to be inconsis tent with the following provisions:

• Article II:1(a) and (b) of the GATT 1994;

• Articles III:2 and III:4 of the GATT 1994.

India's measures also appear to nullify or impa ir the benefits accruing to the United States
directly or indirectly under the cited agreement.

We look forward to receiving your reply to th e present request and to fixing a mutually
convenient date for consultations.