A Brief Note On Tobacco Control Measures Were Challenged On The Wto

1300 Words Sep 14th, 2015 6 Pages
II. Tobacco control measures were challenged in the WTO 1. Measures relating to provisions of the GATT 1994
WTO members might impose tariff and non-tariff measures on tobacco products when these products are imported to their territories. However, by the three critical principles, which are mentioned in the previous part, the GATT 1994 prevents WTO members from measures establishing discrimination and trade restriction. Therefore, in boundary measures imposed on tobacco products might be challenged under these principles.
In Dominican Republic – Measures Affecting the Importation and Internal Seal of Cigarettes in 2004, Honduras submitted its request to establish proceedings in the framework of the WTO to claim that measures, which the Dominican Republic imposed on imported cigarettes, did not comply with some provisions of the GATT 1994.
1.1. Transition surcharge and foreign exchange fee
The Dominican Republic imposed a transition surcharge on all imported products, including cigarettes. The amount of the surcharge is 2 percent of ‘the cost, insurance and freight value of the imported good’. Importers had to pay extra 10 percent of value of the products imported to the Dominican Republic at the selling rate for foreign exchange in the this country. Honduras claimed that these surcharge and fee did not comply with Article II:1(b) of the GATT 1994.
The Panel noted that the surcharge and fee:
(i) were additional charges of imported taxes. Thus, they were in boundary…
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