THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES FROM THE PHILIPPINES
Document: Status Report by Thailand Addendum
Date: 15 June 2012
Document codes: WT/DS371/15/Add.2
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

Addendum

 The following communication, dated 14 June 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, Thailand hereby provides the following status report
of its progress in the implementation of the DSB's recommendations and rulings.

On 10 April 2012, Thailand submitted to the DSB it s first status report under Article 21.6 of
the DSU on its progress in the implementation of the DSB's recommendations and rulings in this
matter. This report was circulated to Members as document WT/DS371/15, dated 13 April 2012. On

11 May 2012, Thailand submitted to the DSB its sec ond status report, which was circulated to
Members as document WT/DS371/15/Add.1, dated 14 May 2012.

More recently, in its statement at the meeting of the DSB on 24 May 2012, Thailand provided
a detailed explanation of the status of its implem entation of the DSB's recommendations and rulings.
Thailand refers Members to that statement. Since the DSB meeting on 24 May 2012, Thailand has
issued the Customs Regulation on Administra tion Regarding the Customs Guarantees, which
establishes an independent review process for the re view of decisions to require customs guarantees
on clearance of goods pending final determination of the customs value. The review process is
effective as of 13 June 2012. The Customs Department is also continuing to accelerate the
consideration of the Board of Appeals with regard to the customs valuation of the specific entries of
merchandise listed in the Philippines' request for th e establishment of a panel and the entries involved
in the Philippines' claim under Article X:3 of the GATT 1994.

Regarding the findings concerning the administrative requirements for VAT reporting for re-
sales of imported and domestic cigarettes, the Counc il of State has finished its review of the draft
Royal Decree issued under the Revenue Code. The Revenue Department is currently in the process of
confirming the changes made by the Council of Stat e. The Decree will then be submitted to and
considered by the Parliament. Thailand expects that the Decree will be in effect by the end of the
agreed reasonable period of time for implementation on these items, which expires on
15 October 2012.

Thailand will continue to provide Members with further details in future status reports.

Thailand also notes that on 1 June 2012, it concluded a sequencing agreement with the
Philippines covering the recommendations and rulings for which the reasonable period of time was
10 months, expiring on 15 May 2012. This se quencing agreement was circulated to Members on
7 June 2012 as document WT/DS371/16.