Philip Morris urges Thailand to drop prosecution after WTO's second ruling

[webfact]

Philip Morris urges Thailand to drop prosecution after WTO's second ruling

 

FILE PHOTO: A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS/Denis Balibouse

 

BANGKOK (Reuters) - Philip Morris urged Thailand to drop criminal charges against its Thai subsidiary on Saturday, after a second World Trade Organization (WTO) ruling that the Asian nation had failed to comply with regulations on cigarette imports.

 

Thai public prosecutor filed criminal charges in 2017 against Philip Morris Thailand for under-declaration of more than 780 entries of cigarettes that cleared Thai customs between 2002 and 2003.

 

In a second ruling since 2018, the WTO said on Friday https://www.wto.org/english/news_e/news19_e/371rw2_e.htm thatThailand had not met obligations under the Customs Valuation Agreement, regarding the valuation of cigarettes imported by Philip Morris Thailand from Philip Morris subsidiaries in the Philippines and Indonesia.

 

"The ruling requires the immediate withdrawal of the prosecution against (Philip Morris Thailand) and our employees," Gerald Margolis, branch manager of Philip Morris Thailand, said in a statement emailed to Reuters.

 

"We trust that the government will promptly honour its obligation to withdraw the criminal prosecution," he said.

 

Representatives of the Thai government were not immediately available for comment.

 

The Philippines went to the WTO in 2008 to complain that Thailand was illegally discriminating against imports to protect its state-controlled Thailand Tobacco Monopoly.

 

"This WTO dispute has been going on for more than 10 years now ... and it is about time that Thailand accepts the rulings and implements the customs valuation reforms called for by those rulings," Philippines Trade and Industry Secretary Ramon Lopez said in a statement.

 

(Reporting by Patpicha Tanakasempipat; Editing by Edmund Blair)

 

-- © Copyright Reuters 2019-07-15

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[webfact]

Thailand urged to take heed of WTO rulings on cigarette imports

By The Nation

 

World Trade Organisation headquarters in Geneva

 

The Philippines’ Department of Trade and Industry is calling on Thailand to implement customs valuation reforms after a World Trade Organisation (WTO) dispute panel on Friday ruled that the Kingdom was violating its law on customs valuation.

 

The dispute, raised by tobacco company Philip Morris Philippines in 2008, is related to the export of cigarettes to Thailand. 

 

Philip Morris Thailand has also called on the government to immediately withdraw lawsuits against the company and its employees after the latest ruling of the Geneva-based WTO. 

 

The Thai government is suing the tobacco firm for evading taxes worth Bt60 billion by allegedly declaring that a pack of cigarettes is sold for Bt7, when in reality a pack of cigarettes is sold for Bt145.

 

Philippines’ Trade and Industry secretary Ramon Lopez said on Friday that the dispute has been going on for over 10 years now, and that since Thailand has lost all three panel and appellate rulings, and it was about time it accepted the rulings and implemented the customs valuation reforms that the rulings call for. 

 

“Thailand is a strong supporter of the WTO multilateral trading system, and currently chairs the WTO General Council as well as Asean for 2019,” Lopez was quoted as saying in the Philippines' Department of Trade and Industry website. 

 

“Accepting the panel report in this dispute would be a clear demonstration of Thailand’s responsibility and leadership in the WTO and in Asean.”

 

In 2008, Philip Morris Philippines filed a complaint saying its exports were being hampered by Thai fiscal and customs measures, such as customs valuation, excise tax, health tax, value-added tax, retail licensing requirements and import guarantees imposed on cigarette importers.

 

According to the Philippines’ Department of Trade and Industry website, Thailand has now lost three WTO panel proceedings:

In the original proceedings, a WTO panel and the Appellate Body ruled in 2010 that the Thai customs valuation measures violated the WTO’s Customs Valuation Agreement (CVA) and other WTO rules.

 

Following this ruling, Thailand brought new, WTO-inconsistent customs valuation measures against Philippine cigarettes and filed criminal charges against Philip Morris Thailand for under-declaration.

 

The Philippines successfully brought a first set of WTO compliance proceedings; in November 2018, the WTO compliance panel found that the new customs valuation measures and the first criminal charges violate the CVA.

 

While these proceedings were ongoing, Thailand issued a second set of criminal charges, forcing the Philippines to initiate second WTO compliance proceedings. This latest WTO panel ruled on Friday that these second charges also violate the CVA.

 

In response to the latest ruling, Gerald Margolis, branch manager of Philip Morris Thailand, said WTO’s compliance ruling confirmed yet again that Thailand’s prosecution of the tobacco firm its employees for alleged under-declaration of customs values was inconsistent with Thailand’s WTO obligations.

 

Gerald Margolis

 

“This is the second time that Thailand has been requested to comply with the global trade organisation’s ruling. We trust that the government will promptly honour its obligation to withdraw the criminal prosecution,” said Margolis in a statement obtained by The Nation on Saturday.

 

In May, there was a report saying that then-foreign minister Don Pramudwinai had written a confidential letter to Prime Minister Prayut Chan-o-cha raising concerns about the dispute at the WTO and asking the premier to suspend the lawsuit in the hope of settling the matter out of court.

 

Source: https://www.nationthailand.com/news/30372928

 

-- © Copyright The Nation Thailand 2019-07-15

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[Matzzon]

So, that means that somewhere Thailand admitt wrong. Yeah, and the earth is still flat.

[Bluespunk]

43 minutes ago, webfact said:

In May, there was a report saying that then-foreign minister Don Pramudwinai had written a confidential letter to Prime Minister Prayut Chan-o-cha raising concerns about the dispute at the WTO and asking the premier to suspend the lawsuit in the hope of settling the matter out of court.

That horse has bolted, that stable door can no longer be closed

Edited July 14, 2019 by Bluespunk

[ChrisY1]

Loss of face....foot in mouth....again!

[HiSoLowSoNoSo]

5 hours ago, webfact said:

We trust that the government will promptly honour its obligation

He must be new to these shores.

[justin case]

smoking = public danger = cancer 

 

same as alcohol ... legal dangerous drugs

 

 

[hotchilli]

10 hours ago, webfact said:

The Philippines went to the WTO in 2008 to complain that Thailand was illegally discriminating against imports to protect its state-controlled Thailand Tobacco Monopoly.

For a protectionist country this is nothing new to anyone.

[Reigntax]

3 hours ago, justin case said:

smoking = public danger = cancer 

 

same as alcohol ... legal dangerous drugs

 

 

Personal choice > Cotton wool = boring

[atyclb]

time  to impound another thai owned jet or two.

 

 

the wto just cant understand that their decisions hurt thai feelings

[the guest]

Thailand will always protect its interests first, and run by its own sovereign rules. It will probably just ban these products from entering Thailand, rather than loosing face.

[IAMHERE]

At times I wish America were more like Thailand.

[sunnyboy2018]

Thailand is prosecuting Philip Morris. Good. A parasitic merchant of death.

[sunnyboy2018]

4 hours ago, Reigntax said:

Personal choice > Cotton wool = boring

Cancer caused by secondary smoke, filthy smell, out of date out of step attitude = anti social ignorance and disrespect. 

[car720]

17 hours ago, justin case said:

smoking = public danger = cancer 

 

same as alcohol ... legal dangerous drugs

 

 

Yea.  Isn't it great.

[Katipo]

There is no good guy in this battle. ????