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15)“Like products” interpretation under the General Agreement on Tariffs and
Trade of 1994 (20 bal)
The current state of the law regarding the determination of ‘likeness’ under
Article III:2, first sentence, of the GATT 1994 is best reflected in the Appellate
Body reports in Philippines – Distilled Spirits (2012). It was ruled that the
determination of ‘likeness’ under Article III:2, first sentence, of the GATT 1994
is, fundamentally, a determination about the nature and extent of a
competitive relationship between and among products. To make such a
determination, a panel examines on a case-by-case basis all relevant criteria,
including:
(1) the products’ properties, nature and quality, i.e. their physical
characteristics;
(2) the products’ end uses (i.e. the extent to which products are capable of
performing the same, or similar, functions);
(3) consumers’ tastes and habits, also referred to as consumers’ perceptions
and behaviour, in respect of the products (i.e. the extent to which consumers
are willing to use the products to perform these functions or the extent to
which consumers perceive products to be substitutable); and
(4) the products’ tariff classification.
In Japan – Alcoholic Beverages II (1996), shochu and vodka were found to be
‘like products’ within the meaning of Article III:2, first sentence. In Korea –
Alcoholic Beverages (1999), however, soju and vodka were not found to be
‘like products’. In Mexico – Taxes on Soft Drinks (2006), soft drinks sweetened
with beet sugar or high fructose corn syrup (HFCS) and soft drinks sweetened
with cane sugar were considered to be ‘like products’ within the meaning of
Article III:2, first sentence. According to the panel in Dominican Republic –
Import and Sale of Cigarettes (2005), the actual price at which products are
sold on the market of the importing country is a criterion – in addition to the
criteria already discussed above – to be considered when determining whether
products are ‘like’ within the meaning of Article III:2, first sentence.
30)The nature and types of International Trade Terms (Incoterms) of
International Chamber of Commerce (20 bal)
The most popular commercial customs so far are the rules codified by the
International Chamber of Commerce (ICC). International commercial terms, or
‘Incoterms’, are the most popular ‘rules’ governing sale contracts involving the
transport of goods. Incoterms 2020 is the most recent version. Reference to an
Incoterms rule in a contract for the sale of goods clearly defines the parties’
respective obligations regarding topics such as delivery terms, risk, cost and
arrangement of transport and customs clearance, thereby reducing the
potential for legal complications. They represent the most common
commercial practices, usage or customs, which can be voluntarily accepted by
the contracting parties. The existence of Incoterms means that the
‘uncertainties of different interpretations of such terms in different countries
can be avoided or at least reduced to a considerable degree
To be legally effective, INCOTERMS must be specifically incorporated in the
contract by the parties
