Tariff Treatment on

Roasted Coffee
Fildza Nabila Avianti
Gita Armarosa Putri Sembiring
Laurensia Andrini

 When Spain acceded to GATT, it did not include coffee in its

commitment;
July 8th, 1979, Spain enacted Royal Decree No. 1764/79
Mild coffee was free rate, while unwashed Arabica was under 7%
ad valorem tax;
The enactment was intended to adjust with the new national policy
where CAT transferred the authority of selling coffee to private
sectors (no designations anymore, only indicated a single maximum
price for domestic sale of these products without distinction as to
type)
As one of the consistent exporter of unwashed Arabica), Brazil
decided to do consultation regarding this matter with Spain

Facts:

 Brazil: It is in the violation of Article I:1 of GATT

Spain: It is not a like product, as Spain has the right to
decide the tariff heading of imported goods.
Brazil: Items under the same headings must be treated as
a like product
Spain: It may not, as it may led to 2 serious mistakes
Brazil: It is like product as it is extracted from the same
plant
Spain: There are differences due to preparation, economic
and commercial criteria.

Point of the Debate:

 It is like product
Obligation under Article I:1 GATT is equally applied to bound and
unbound tariff
The Panel furthermore found relevant to its examination of the
matter that unroasted coffee was mainly, if not exclusively, sold in the
form of blends, combining various types of coffee, and that coffee in
its end-use, was universally regarded as a well-defined and single
product intended for drinking.
Royal Decree 1764/79 not to be in conformity with the provision of
Article I:1and it is constituted prima facie a case of impairment of
benefits accruing to Brazil within the meaning of Article XXIII.
Panel suggest that the CONTRACTING PARTIES request Spain to
take the necessary measures in order to make its tariff regime for
unroasted coffee conform to Article I:1.

The Panel Says:

THANK YOU