Dispute Settlement Reports 2005

I. INTRODUCTION 7373 II. ARGUMENTS OF THE PARTICIPANTS AND THE THIRD PARTICIPANTS 7375 A. Claims of Error by the Dominican Republic Appellant 7375 1. The Necessity Analysis under Article XX(d) of the GATT 1994 in Relation to the Tax Stamp Requirement 7375 2. Completing the Analysis under Article XX of the GATT 1994 7378 3. The Conformity of the Panel's Examination of Exhibits DR-8 and DR-29 with Article 11 of the DSU 7378 B. Arguments of Honduras Appellee 7379 1. The Necessity Analysis under Article XX(d) of the GATT 1994 in Relation to the Tax Stamp Requirement 7379 2. Completing the Analysis under Article XX of the GATT 1994 7381 3. The Conformity of the Examination of Exhibits DR-8 and DR-29 with Article 11 of the DSU 7382 C. Claims of Error by Honduras Appellant 7383 1. Article III:4 of the GATT 1994 and the Bond Requirement 7383 2. Article XX(d) of the GATT 1994 and the Bond Requirement 7384 3. Article 11 of the DSU and the Panel's Consideration of the Bond Requirement "As Such" 7384 4. The Timing of Payment of the Selective Consumption Tax and the Panel's Terms of Reference 7385 D. Arguments of the Dominican Republic Appellee 7385 1. Article III:4 of the GATT 1994 and the Bond Requirement 7385 2. Article XX(d) of the GATT 1994 and the Bond Requirement 7386 3. Article 11 of the DSU and the Panel's Consideration of the Bond Requirement "As Such" 7387 4. The Timing of Payment of the Selective Consumption Tax and the Panel's Terms of Reference 7388 E. Arguments of the Third Participants 7388 1. China 7388 (a) The necessity analysis under Article XX(d) of the GATT 1994 in relation to the tax stamp requirement 7388 (b) Article III:4 of the GATT 1994 and the bond requirement 7389 2. European Communities 7389 (a) The necessity analysis under Article XX(d) of the GATT 1994 in relation to the tax stamp requirement 7389 (b) Article III:4 of the GATT 1994 and the bond requirement 7390 (c) Article 11 of the DSU and the Panel's consideration of the bond requirement "as such" 7390 3. United States 7391 (a) The necessity analysis under Article XX(d) of the GATT 1994 in relation to the tax stamp requirement 7391 (b) Article III:4 of the GATT 1994 and the bond requirement 7391 III. ISSUES RAISED IN THIS APPEAL 7392 IV. THE NECESSITY ANALYSIS UNDER ARTICLE XX(D) OF THE GATT 1994 IN RELATION TO THE TAX STAMP REQUIREMENT 7392 V. THE CONFORMITY OF THE EXAMINATION OF EXHIBITS DR-8 AND DR-29 WITH ARTICLE 11 OF THE DSU 7399 VI. ARTICLE III:4 OF THE GATT 1994 AND THE BOND REQUIREMENT 7403 VII. ARTICLE 11 OF THE DSU AND THE PANEL'S CONSIDERATION OF THE BOND REQUIREMENT "AS SUCH" 7409 VIII. THE PANEL'S TREATMENT OF HONDURAS' CONTENTIONS REGARDING THE TIMING OF PAYMENT OF THE SELECTIVE CONSUMPTION TAX 7414 IX. FINDINGS AND CONCLUSIONS 7418 Annex 1 Notification of an Appeal by the Dominican Republic under Article 16.4 and Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), and under Rule 20(1) of the Working Procedures for Appellate Review Annex 2 Notification of an Other Appeal by Honduras under Article 16.4 and Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), and under Rule 23(1) of the Working Procedures for Appellate Review