International -- active



Thailand - Customs and Fiscal Measures on Cigarettes from the Philippines   (World Trade Organization)

Customs valuation issue in Thailand

The NAM led a group of associations in filing a joint WTO statement because Thailand has failed to abide by its WTO commitments on customs valuation, which now threatens a company with fines of more than $2 billion and imprisonment of several individuals. The dispute raises important systemic issues for the international business community, and our statement emphasizes the importance of the WTO’s customs valuation rules to international trade.

As way of background, this statement is based on the Philippines’ panel request filed at the World Trade Organization (WTO) on June 29, 2016, which raised complaints against Thailand under, among others, the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, more commonly known as the Valuation Agreement. Of particular concern to our associations are the allegations that Thailand has engaged in improper customs valuation.

Proper valuation is important because many manufacturers operate through interconnected commercial relationships and supply and production chains with producers and suppliers throughout the United States and foreign countries. These supply and production chains often involve related-party transactions of the type at issue in the present dispute. Companies rely on these supply and production chains to produce goods as efficiently as possible and to access international consumers in the global marketplace.


Related Documents:
WTO statement  (May 12, 2017)

 


© 2019 National Association of Manufacturers