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Summary of the dispute to date
The summary below was up-to-date at
Consultations
Complaint by Honduras.
On 28 August 2003, Honduras requested consultations with the Dominican Republic concerning its measures which affect the importation of cigarettes.
Honduras’ request concerns three types of measures:
- The manner in which the tax base is assessed for
purposes of collection of the Selective Tax on Consumption regarding
cigarettes, which in Honduras’ view creates a less favourable treatment
for Honduran cigarettes than that received by like domestic products and
by like products imported from third countries. This is inconsistent with
the Dominican Republic’s obligations under Articles III:2 and I:1 of GATT
1994;
- The requirement that stamps must be affixed on the
product inside the territory of the Dominican Republic and under
supervision of its tax authorities, which in Honduras’ view creates a less
favourable treatment for Honduran cigarettes than that received by like
domestic products. This is also inconsistent with the Dominican
Republic’s
obligations under Article III:4 of GATT 1994; and,
- The requirement that importers, including importers of cigarettes, post a bond as a pre-requisite for importation, which in Honduras’ view creates a “charge” other than a custom duty, and is therefore inconsistent with the Dominican Republic’s obligations under Article I:1(b) of GATT 1994. In another sense, it is also a “restriction” on the importation of cigarettes and therefore inconsistent with the Dominican Republic’s obligations under Article XI:1 of GATT 1994.
Honduras claimed that such measures unduly restrict its exports to Dominican Republic and nullify or impair benefits accruing to Honduras under the WTO Agreement.
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