INDIA – CERTAIN TAXES AND OTHER MEASURES ON IMPORTED WINES AND SPIRITS
Document: Request for Consultations by the European Communities Addendum
Date: 6 May 2009
Document codes: WT/DS380/1/Add.2; G/L/855/Add.2; G/SCM/D79/1/Add.2
Complainant: EU
Respondent: India
Dispute stage: Consultation
Agreements cited: Art. III:2, III:4, XI, XVII  GATT 1994Art. 3.1(b), 3.2, 4.2  Subsidies and Countervailing Measures (SCM)

INDIA – CERTAIN TAXES AND OTHER MEASURES ON
IMPORTED WINES AND SPIRITS

Request for Consultations by the European Communities

Addendum

 The following communication, dated 4 May 2009, from the delegation of the European
Communities to the delegation of India and to th e Chairman of the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU.

 The European Communities hereby re quests supplementary consultations
1 with India
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes (DSU) and Article XXII:1 of the General Agreement on Tariffs and Trade 1994
(GATT 1994) regarding discriminat ory taxation applied on imported bottled wines and spirits by the
Indian state of Andhra Pradesh. These measures adve rsely affect exports of wines and spirits (codes
22.04, 22.05, 22.06 and 22.08 of the Harmonised System) from the European Communities to India.

Discriminatory taxation applied by the Indian State of Andhra Pradesh

 The European Communities understands that the State of Andhra Pradesh applies the
"assessment fee" in a way that subjects imported wines and spirits to internal taxes in excess of
domestic like products. Government Orders G.O. Ms No 119 and G.O. Ms No 120 of 5 February 2009
set a new "assessment fee" on imported wines and spirits, respectively. The "assessment fee" appears
to apply at rates which are inversely proportional to the assessable value of imported wines and spirits
and are set in the range of 100% to 15% ad valorem for imported wines and 200% to 60% ad valorem
for imported spirits, respectively. The "assessmen t fee" is not applied on domestic like products.
Imported wines and spirits also a ppear to be subject to an "import fee" which does not apply to
domestic like products.

 The measures in question include but are not limited to:

− The Andhra Pradesh Excise Act, 1968 (Andhr a Pradesh Act 17 of 1968), including
sections 9, 21, 28;

1 This request supplements the request of consultations entailed in document WT/DS380/1, G/L/855,
G/SCM/D79/1 dated 25 September 2008 as well as the supplementary request entailed in document
WT/DS380/1/Add.1, G/L/855/Add.1, G/SCM/D79/1/Add.1 dated 17 December 2008 with regard to measures
not mentioned in those requests.

− The Andhra Pradesh Indian Liquor and Foreign Liquor rules, 1970;
− The Andhra Pradesh Excise (Import, Export a nd transport of Indian Liquor and foreign
Liquor–permits) Rules, 2005 (G.O. Ms No. 99 6, Revenue (Excise II) , 24 May 2005), as
amended by Government Orders G.O. Ms 117 Revenue (Excise II) Department of
5 February 2009, Government Orders G.O. Ms 118 Revenue (Excise II) Department of
5 February 2009 G.O. Ms No 119 Revenue (E xcise-II) Department of 5 February 2009
and Government Order G.O. Ms No 120 Revenue (Excise-II) Department of
5 February 2009;
− Government Order G.O. Ms No 184 Revenue (Excise –II) of 7 February 2005.
 The European Communities considers that these measures are inconsistent with Article III ,
paragraph 2 of the GATT 1994. In particular:

− The "assessment fee" is inconsistent with India's obligations under Article III:2 of the
GATT 1994, because it subjects imported BIO bottle d wines and spirits to internal taxes
that are in excess of internal taxes applied on domestic like products;
− The"import fee" is inconsistent with I ndia's obligations under Article III:2 of the
GATT 1994, because it subjects imported BIO bottled wines and spirits to internal taxes
that are in excess of internal taxes applied on domestic like products.
 The European Communities considers that these measures also nullify or impair the benefits
accruing to the European Communities under the GATT 1994.

 For each of the measures referred to in this document, the request for consultations also
covers any amendments, replacements, extensions, implementing measures and the related measures.

 The European Communities reserves the right to address additional measures and claims
under other provisions of the WTO Agreement regard ing the above matters during the course of the
consultations.

 The European Communities looks forward to receiving in due course a reply from India to
this request. The European Communities is ready to consider with India mutually convenient dates to
hold consultations.