USTR Seeks Comments on WTO Case Against the Philippines Over Excise Taxes on Distilled Spirits
The Office of the U.S. Trade Representative has issued a notice seeking comments on the U.S. request for World Trade Organization dispute settlement consultations with the Philippines regarding its imposition of excise taxes on imported distilled spirits.
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Comments are due June 2, 2010.
Philippines’ Taxes on Imported Distilled Spirits 10-40 Times Higher than Domestic
On January 14, 2010, the U.S. requested consultations with the Philippines on its taxation of imported distilled spirits. According to USTR, the Philippines taxes distilled spirits made from certain materials that are typically produced in the Philippines, such as cane sugar and palm, at a low rate (e.g. 13.59 pesos per proof liter in 2009). Other distilled spirits, however, are taxed at significantly higher rates (from approximately ten to forty times higher) than the low rate applied to domestic products. WTO rules generally bar members from discriminating between imported and domestic products in their tax treatment.
Despite U.S. Concerns Philippines Has Maintained Discriminatory Tax
The U.S. has raised concerns with the Philippines over its taxation of distilled spirits many times over the past several years, both bilaterally and in WTO forums, including in formal WTO dispute settlement consultations in February 2010. Despite U.S. efforts to resolve the issue, the Philippines has maintained its discriminatory tax on distilled spirits.
(See ITT Online Archives or 03/30/10 daily news (Ref: 10033025), for BP summary of USTR announcement of request for WTO DSP on Philippine distilled spirit taxes. See ITT Online Archives or 01/15/10 and 02/04/10 daily news, (Ref: 10011530) and (Ref: 10020455), for BP summaries of USTR announcing its request for WTO consultations and a DSP being established in the EU-Philippines dispute, respectively.)
USTR contact -- Courtney Smothers (202) 395-5657
USTR notice (WTO/DS403, FR Pub 05/03/10) available at http://edocket.access.gpo.gov/2010/2010-10179.htm.