The EU on 25 January initiated WTO dispute proceedings against Thailand, accusing Bangkok of applying arbitrary values to EU products for tariff purposes.
 
Brussels alleges that since September 2006, Thailand has "systematically and without proper motivation challenged, and in general rejected, the declared transaction price of certain EU products imported into Thailand," in violation of its WTO commitments and the WTO Customs Valuation Agreement.

The EU claims that the measures are "having a significant impact on EU companies, especially exporters of wines and spirits." EU exports to Thailand are facing "unnecessary administrative burdens," delayed customs clearance, and lengthy bank guarantee and deposit obligations.

EU Trade Commissioner Peter Mandelson said that the "measures are arbitrary and damaging for EU companies seeking to do business in Thailand," and that the "EU is committed to ensuring that European companies are able to compete fairly in other markets."

The Thai government has rejected the claims that the values placed on EU imports of alcoholic beverages are "arbitrary." Product values were changed only if importers did not prove that the prices were correct, insisted Natina Santiyanont, a top Thai customs official, reports Thomson Financial. "We have standards to maintain and to facilitate importers that are honest and comply with rules and regulations," she said. Thai and EU customs officials are set to discuss the policy soon.

The EU last year took India to WTO dispute settlement over assorted charges and taxes on imported wines and spirits, but suspended the case when New Delhi moved to withdraw the taxes at issue (see BRIDGES Weekly, 25 July 2007).

If the EU and Thailand prove unable to resolve the issue after 60 days of consultations, Brussels will be entitled to ask for the creation of a panel to rule on the Thai customs valuation practices.

"EU Requests WTO Consultations Over Thai Customs Practices," EUROPEAN COMMISSION, 27 January 2008; " Thailand rejects EU complaints on alcohol imports," THOMSON FINANCIAL, 28 January 2008.