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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