DSB considers panel request by Honduras to examine Dominican Republic's measures affecting cigarettes

At the DSB meeting on 19 December 2003, Honduras requested a panel to examine measures imposed by the Dominican Republic on the import and internal sale of cigarettes (WT/DS302/5). Honduras stated that in calculating the customs duty and internal sales tax on imported cigarettes, the Dominican Republic ignored the proper value of imported cigarettes and arbitrarily determined the value using inconsistent methods. According to Honduras, this had the effect of distorting conditions of competition between domestic and imported cigarettes. In response, the Dominican Republic stated that the measures being challenged by Honduras were consistent with WTO rules, and that the panel request had no factual or legal basis. The Dominican Republic also maintained that the panel request did not fulfil the requirements of Article 6.2 of the DSU, and that it could not agree to the establishment of a panel.