Thai, PH trade execs to thresh out issues

Philippine trade officials are set to meet with their counterparts in Thailand to thresh out issues regarding the latter’s compliance to a World Trade Organization ruling three years ago concerning taxes imposed on imported cigarettes.

Trade Undersecretary Adrian S. Cristobal Jr. said that, when the new government took over Thailand in May after months of political unrest, Philippine officials began assessing the viability of holding bilateral talks.

According to Cristobal, the Philippine agency is looking to hold the talks soon, possibly within the year, to work out the country’s complaints regarding a possible violation by Thailand of the ruling issued by the WTO in 2011.

The WTO Appellate Body had ruled with finality that Thailand was unfairly treating cigarette imports from the Philippines between August 2006 and September 2007. This meant that the prices declared and taxes paid were in accordance to the rules and policies of the Thai government.

The Philippine complaint to the WTO, which was filed on behalf of Philip Morris Philippines Manufacturing Inc. in 2008, cited the Thai government’s prejudice against imported cigarette brands, particularly in terms of the customs valuation practices, excise tax, health tax, TV tax, value-added tax regime, retail licensing requirements, and import guarantees imposed on cigarette importers.

But the issue currently being raised by the Philippines concerned the move made by a Thailand state agency, the Office of the Attorney General, to indict officials of Philip Morris Thailand for the alleged under declaration of the value of cigarette imports from the Philippines between 2003 and 2007 in order to evade taxes.

The Philippines last year investigated the reports, to assess if the actions of the Thai government conformed or undermined the WTO ruling of 2011.

The Bangkok Post last year reported that the supposed under-reporting of the price of imported cigarettes and underpayment of taxes had cost the Thai government some 68 billion baht in lost revenues. Amy R. Remo