WTO Appellate Body finds against EU customs law administration
14 Nov '06
3 min read
The WTO Appellate Body issued a report confirming that the European Union (EU) fails to administer in a uniform manner its rules on the customs classification of liquid crystal display monitors.
The report upheld a June 16, 2006 finding by a WTO dispute settlement panel. Additionally, the Appellate Body agreed with the United States that that panel erred in declining to consider the broader question of whether the EU's system of customs administration as a whole is inconsistent with WTO rules requiring the uniform administration of customs laws.
In this dispute, the United States claimed that the administration of EU customs law by 25 different agencies (one for each of the EU's Member States), coupled with a lack of any procedures or mechanisms to reconcile the divergences that inevitably occur on important matters including classification and valuation, is a violation of the EU's obligation to administer its customs laws in a uniform manner.
Deputy U.S. Trade Representative John Veroneau made the following statement regarding the Appellate Body report:
“Today's Appellate Body report reinforces that the EU is subject to the same rules as other WTO Members. The EU's internal decisions about how to organize itself do not excuse it from or diminish its obligations to other WTO Members."
"Like every other WTO Member, the EU must administer its customs law uniformly across its territory. Today's report confirms the panel's finding that the EU does not do so when it comes to the classification of LCD monitors."
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