THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES FROM THE PHILIPPINES
Document: Status Report by Thailand
Date: 13 April 2012
Document codes: WT/DS371/15
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

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 circulated pursuant to Article 21.6 of the DSU.

Status Report Regarding Implementation of the
DSB Recommendations and Rulings in the Dispute

(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
() and the Panel report (), 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 implementation 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 being reviewed internally before publication.

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 Customs 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 authority 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.