CHILE – TAXES ON ALCOHOLIC BEVERAGES

Status Report by Chile

Addendum

            The following communication, dated 18 January 2001, from the Permanent Mission of Chile to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.

_______________

Status Report on the Implementation of the Recommendations

and Rulings in the Dispute

Chile – Taxes on Alcoholic Beverages

            As foreseen in the previous status report, on 4 January 2001 a bill was tabled in the National Congress under the extreme urgency procedure bringing the Additional Tax on Alcoholic Beverages into line with WTO rules.  This bill calls for a single rate of 27 per cent for all alcoholic beverages as from 21 March 2003 except in the case of Pisco, for which the 27 per cent rate will be maintained.  In the meantime, the rate applicable to the other liqueurs will progressively be reduced to 27 per cent by that date.