philippines – TAXes on DISTILLED SPIRITS

Communication from the Chairman of the Panel

            The following communication, dated 16 December 2010, addressed to the Chairman of the Dispute Settlement Body (DSB), is circulated in accordance with Article 12.9 of the Dispute Settlement Understanding (DSU).

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            Article 12.8 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) provides that the period in which a panel shall conduct its examination, from the date that the composition and terms of reference of the panel have been agreed upon until the date the final report is issued to the parties to the dispute, shall, as a general rule, not exceed six months.

            Article 12.9 of the DSU provides that, when a panel considers that it cannot issue its report within six months, it shall inform the Dispute Settlement Body (DSB) in writing accordingly and indicate the reasons, together with an estimate of the period within which it will issue its report.

            The Panel on Philippines – Taxes on Distilled Spirits (WT/DS396, WT/DS403) was established by the DSB on 19 January 2010 and 20 April 2010, respectively, and composed on 5 July 2010. 

            The timetable adopted by the Panel after consultations with the Parties to the dispute envisages that the final report shall be issued to the Parties by June 2011.  The Panel expects to conclude its work within that time-frame.