DISPUTE SETTLEMENT

DS: Brazil — Measures on Minimum Import Prices

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

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Consultations

Complaint by the United States.

On 30 May 2000, the US requested consultations with Brazil concerning the use of the latter’s minimum import prices for customs valuation purposes. The measures at issue are Decree No. 2.498/98 and other related statutes and regulations, which establish a system to verify the declared values of imported goods. The US asserted that Brazil utilises this verification system — in conjunction with non-automatic import licensing procedures — to prohibit or restrict the import of products with declared values below what the US considers arbitrarily determined minimum prices. The US considered that Brazil’s measures are inconsistent with its obligations under Articles 1 through 7, and 12 of the Customs Valuation Agreement; general notes 1, 2 and 4 of Annex 1 of the Customs Valuation Agreement; Articles II and XI of the GATT 1994; Articles 1 and 3 of the Agreement on Import Licensing Procedures; Articles 2 and 7 of the Agreement on Textiles and Clothing; and Article 4.2 of the Agreement on Agriculture.

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