Wine gallon assessment
Wine gallon assessment: the United States practice, now terminated, of assessing spirits imported at less than 100 proof as though they were 100 proof since they same rule would have applied to domestic spirits of less than 100 proof if withdrawn from bond. The importer could get around this by purchasing spirits at 100 proof or more and diluting them later. This meant importing in bulk and bottling in the United States. Customers, however, generally preferred spirits bottled in the country of origin. This rule therefore disadvantaged foreign products even though there was no difference in the treatment of similar domestic products. The wine gallon assessment is often used to show how formally identical national treatment can in fact be discriminatory. See also implicit discrimination.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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