INTRODUCTION

On 21 September 2004, the United States requested consultations with the European Communities (EC) pursuant to Articles 1 and 4 of the Understanding on the Rules and Procedures Governing the Settlement of Disputes (DSU) and Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) (WT/DS315/1).

The request referred to the alleged non-uniform manner in which the European Communities administers its laws, regulations, decisions and rulings of the kind described in Article X:1 of GATT 1994 pertaining to the classification and valuation of products for customs purposes and to requirements, restrictions or prohibitions on imports.

The request identified the following measures: Council Regulation (EEC) No. 2913/92 of 12 October 1992 establishing the Community Customs Code, including all annexes thereto, as amended (the “Code”); Commission Regulation (EEC) No. 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No. 2913/92 of 12 October 1992 establishing the Community Customs Code, including all annexes thereto, as amended (the “Commission Regulation”); Council Regulation (EEC) No. 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff, including all annexes thereto, as amended (the “Tariff Regulation”); the Integrated Tariff of the European Communities established by virtue of Article 2 of Council Regulation (EEC) No. 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff, including all annexes thereto, as amended (the “TARIC”); and for each of the above laws and regulations, all amendments, implementing measures and other related measures.

The request also referred to the alleged failure of the European Communities to institute judicial, arbitral or administrative tribunals or procedures for the purpose, inter alia, of the prompt review and correction of administrative action relating to customs matters.

The United States and the European Communities held consultations on 16 November 2004 but failed to reach a mutually satisfactory resolution of the matter. Consequently, in a communication dated 13 January 2005, the United States requested the Dispute Settlement Body (DSB) to establish a panel.