PH Pursues Thai Cigarette Dispute

Source from:  The Standard 01/25/2016

The Philippines should try other avenues to force Thailand to comply with the decision of the World Trade Organization in lowering the valuation of tobacco imports from the Philippines.

Anthony Abad, chief executive and managing director of TA Trade Advisory Services, the Philippine legal advisor to the tobacco dispute with Thailand, said the Manila could work out bilateral discussions and　dispute settlement talks with Bangkok to resolve the case as soon as possible.

"The next important move is for Thailand to comply. WTO has also decided that the new case of valuation and duties that the Thai government has imposed on Philip Morris Thailand Ltd. is in violation of agreement," he said.

The Philippine legal counsel and Manila are providing assistance to the export operations of Philip Morris Manufacturing Inc. in the legal case filed by Thailand against PMTL.

PMMI exports tobacco and cigarette products to PMTL. The latter distributes Philip Morris cigarettes brands like Malrboro to the Thailand consumer market.

Abad said the Thai government "should have issued a ministerial law that new values should be followed to be consistent with the WTO ruling."

"The most diplomatic way is to talk to Thailand bilaterally. Although for all countries with diplomatic disputes, they can file a case under article 215 of the WTO to avoid the case from escalating further. The Philippines can file 215 case for implementation just to settle it," he said.

Article 215 provides the adoption of a mutually satisfactory solution by the parties that leads to the termination of the dispute settlement procedure.

Abad said the case of PMTL should be resolved since tobacco exports of PMMI would be affected and that PMTL should pursue the case being the one registered for paying the taxes.

PMTL imports cigarettes from the Philippines. The Philippines is the top supplier of imported cigarettes to Thailand with a 35 percent share of the local domestic cigarette market.

PMTL said that case contradicted Thailand's non-prosecution order made more than four years ago, as well as prior rulings of the Thai Customs Department, the Customs Board of Appeal, the Customs Post-Clearance Audit Bureau and the WTO.

It has cooperated fully with all involved government agencies since the launching of investigation in 2006.

PMTL, an affiliate of Philip Morris International Inc., has exported and distributed cigarettes in Thailand since 1991. Enditem