GD/3
Brazilian Internal Taxes
Other titles
Brazil Internal Taxes (Source: GATT Analytical Index)
Products at Issue
| Products at issue |
General
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| Type of product |
Not specified
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| Product sub-type |
Related disputes
| GATT | |
| WTO |
Key legal aspects
| Legal basis |
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| Claims raised |
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| Defences raised |
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Adjudicators
| Type | Working Party |
| Chairperson | Dr. A. Argyropoulos (Greece) |
| Other members | Representative of Brazil, Representative of Chile, Representative of China, Representative of Cuba, Representative of France, Representative of Greece, Representative of India, Representative of United Kingdom, Representative of United States |
| No of Pages (total / legal reasoning) | 7 |
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Timeline
| Request for consultations | |
| Request for establishment | |
| Establishment | |
| Composition | |
| Report | |
| Adoption of report |
Outcome
| Outcome of the proceedings |
Report adopted, withdrawal or modification of measure
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| Additional Info | GATT/CP.3/SR.9 (25/04/1949) Contracting Parties Third Session - Summary Record of the Ninth Meeting (25/04/1949) France presented the item, agreement to refer the item to a Working Party. GATT/CP.3/SR.10 (26/04/1949) Contracting Parties Third Session - Summary Record of the Tenth Meeting (26/04/1949) Establishment of Working Party, adopted terms of reference and its composition. GATT/CP.3/WP.7/1 (29/04/1949) Working Party 7 on Brazilian Internal Taxes - Terms of reference and composition. "To examine, in the light of the provisions of Article III and of the Protocol of Provisional Application and taking into account the remarks made during the discussion in the meeting of the Contracting Parties, the discriminatory internal taxes imposed by the Government of Brazil on products of foreign origin." GATT/CP.3/WP.7/2/Add. (26/05/1949) Working Party 7 on Brazilian Internal Taxes - Explanatory Note submitted by Brazil GATT/CP.3/WP.7/2/Add.1 (04/05/1949) Working Party 7 on Brazilian Internal Taxes - Brazilian laws GATT/CP.3/WP.7/2/Add.3 (31/05/1949) Working Party 7 on Brazilian Internal Taxes - Note by the French Delegation in response to the Statement by Brazil in GATT/CP.3/WP.7/Add.2 GATT/CP.3/42 (27/06/1949) Report of Working Party 7 on Brazilian Internal Taxes: The delegate of Brazil submitted that "if an internal tax, even though discriminatory, does not operate in a protective manner the provisions of Article III would not be applicable" and "where there were no imports of a given commodity or where imports were small in volume, the provisions of Article III did not apply." Several members of the Working Party took the view that "taxes on imported products in excess of those on like domestic products were inherently protective and therefore in all cases contrary to Article III" and "the absence of imports from contracting parties during any period of time that might be selected for examination would not necessarily be an indication that they had no interest in exports of the product affected by the tax, since their potentialities as exporters, given national treatment, should be taken into account." The Working Party "noted that the Brazilian Government had already called the attention of the Brazilian Congress to all existing laws providing for different levels of taxation with respect to domestic and imported products, in order to bring those laws into conformity with Article III of the General Agreement [GATT]", also willing to send a further message asking Congress to proceed as soon as possible. The Working Party recommended to the Contracting Parties "that no further action in this matter be undertaken at the present Session, but that at the next Session the question should be reviewed in the light of the action taken by the Brazilian Government by that date." GATT/CP.3/SR.30 (30/06/1949) Contracting Parties Third Session - Summary Record of the Thirteenth Meeting (30/06/1949) Adoption of Working Party Report and acceptance of recommendation in paragraph 19. GATT/CP.4/SR.3 (24/02/1950) Contracting Parties Fourth Session - Summary Record of the Third Meeting (24/02/1950) Review of Brazilian Internal Taxes (GATT/CP.3/42, paragraph 19) Brazil requested postponement of discussion, which was accepted. GATT/CP.4/SR.15 (14/03/1950) Contracting Parties Fourth Session - Summary Record of the Fifteenth Meeting (14/03/1950) Review of Brazilian Internal Taxes (GATT/CP.3/42) Information requested to Brazil, Brazil to revert. GATT/CP.4/SR.20 (03/04/1950) Contracting Parties Fourth Session - Summary Record of the Twentieth Meeting (03/04/1950) Review of Brazilian Internal Taxes. Brazil unable to submit sufficient information due to legislative delays. Chairman: "Since the Brazilian Government had failed to fulfil its obligations, the provisions of the third sentence of paragraph 2 of Article XXIII seemed to have become applicable. The Contracting Parties could take action under GATT XXIII, which Brazil considered unacceptable." GATT/CP.4/SR.21 (11/04/1950) CP Fourth Session - Summary Record of the Twenty-First Meeting (03/04/1950) Decision of the Contracting Parties not to take further action at the present session, taking note of the expectation of a favourable solution shortly; and if expectation is not fulfilled, the Contracting Parties will consider raising the matter at the next session. Decision adopted. GATT/CP/72 (15/06/1950) Communication from Brazil: On 02/06/1950 "a message was sent to the Brazilian Congress requesting action" to bring laws into conformity with GATT Article II. GATT/CP.5/SR.6 (09/11/1950) Contracting Parties Fifth Session - Summary Record of the Sixth Meeting (06/11/1950) Brazil requested the Contracting Parties set up a Working Party to examine the draft law and advise on the adequacy of the measures proposed. Proposal approved by 18 votes to 3, adopting terms of reference and composition. GATT/CP.5/E/2/Rev.1 (29/11/1950) Working Party "E" on Brazilian Internal Taxes - Statement by the Brazilian Delegation concerning the Elimination of Brazilian Discriminatory Internal Taxes: submitted draft law to the National Congress. GATT/CP.5/37 (07/12/1950) Report of Working Party "E" on Brazilian Internal Taxes: asked to examine the draft law modifying the legislation on consumption taxes, and to advise on its conformity with GATT and Protocol of Provisional Application. The Working Party concluded that, except for certain products, in respect of which the draft law would increase the internal tax discrimination (such as playing cards, cigars, cheroots, snuff, and tobacco), its provisions would eliminate the new and increased internal tax discrimination introduced since 30 October 1947 and bring Brazil's consumption tax legislation into conformity with the GATT, as applied under the Protocol of Provisional Application. GATT/CP.5/SR.21 (18/12/1950) Contracting Parties Fifth Session - Summary Record of the Twenty-First Meeting (13/12/1950) Report of Working Party "E" on Brazilian Internal Taxes (GATT/CP.5/37) Report approved as a whole. GATT/CP.6/SR.8 (24/09/1951) Contracting Parties Sixth Session - Summary Record of the Eighth Meeting (21/09/1951) France: requested inclusion in the agenda to indicate its importance. Brazil: the Working Party agreed that the draft law was the first step in a gradual process to remove all discriminatory taxes. The Contracting Parties agreed to keep the item in the Agenda until final information was received from Brazil. |