#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Philip Morris, BAT Sought to Shape Policy in Asia, Studies Say

## Mid

*Philip Morris, BAT Sought to Shape Policy in Asia, Studies Say* 
By Simeon Bennett

Dec. 23 (Bloomberg) -- Two of the worlds biggest tobacco companies tried to undermine anti-smoking efforts in Asia by seeking to influence health policy in China and scientific research in Thailand, according to two new studies. 

British American Tobacco Plc, Europes largest cigarette maker, helped form the Beijing Liver Foundation to reprioritize the agenda of the Ministry of Public Health, one study said, citing company documents. A senior scientist at Philip Morris International Inc., the worlds biggest cigarette maker, gained a disturbing and inappropriate influence over teaching at a Bangkok research institute, the second study said. 

Smoking could kill 1 billion people this century, 10 times more than in the past 100 years, and is the single most preventable cause of death, according to the World Health Organization. The two reports, funded by the U.S. National Cancer Institute, show how cigarette makers seek to counter anti-smoking measures by forging ties with policymakers and scientists. 

Such links are of great concern to the public health community, which is working hard to reduce deaths and disease due to tobacco, said the editors of the journal that published the studies, PLoS Medicine, part of the Public Library of Science. 

The studies examined the Legacy Tobacco Documents Library, a collection of almost 10 million documents produced by tobacco companies in response to litigation in the 1990s. 

*Companies Respond* 

British American Tobacco welcomes sensible regulation and we always seek, wherever possible, to engage with regulators to work towards balanced legal frameworks, Catherine Armstrong, a London-based BAT spokeswoman, said in an e-mail. Far from undermining laws, we believe our input can mean the laws are workable and realistic and can be implemented effectively. 

The research is being published now because the full collection of documents became available online only this year, Kelley Lee, who participated in the BAT study, said in an e-mail. 

Focusing on decades old documents does nothing to progress the objective of achieving effective and comprehensive regulation of tobacco today, Marija Sepic, a spokeswoman for Philip Morris in Lausanne, Switzerland, said in an e-mail. The use of these documents is disingenuous as they do not reflect Philip Morris Internationals views today. 

In the first study, Monique Muggli and colleagues from the Mayo Clinic in Rochester, Minnesota, studied reports from London- based BAT, the maker of Dunhill and Lucky Strike brand cigarettes. The company helped form the Beijing Liver Foundation to reprioritize the agenda of the Ministry of Public Health, and to divert the public attention from smoking and health issues to liver diseases in China, the study says, citing internal reports obtained from BAT. 

*Take Heat Away* 

To focus on liver diseases will take the heat away from anti-smoking and smoking-related issues, according to a BAT document entitled Beijing Liver Foundation Report 1999. 

The foundation gave British American Tobacco a channel to reach our customers by posting company positions on smoking and health issues, and balanced views on lung cancer diseases on its Web site, the study in PLoS Medicine said, citing the same report. 

Sixty percent of Chinas men smoke, representing one-third of the worlds smokers, a report in the Lancet medical journal said in October. 

The second study, led by Ross MacKenzie of the School of Public Health at the University of Sydney, said Roger Walk, who became director of worldwide scientific affairs at Philip Morris in the 1990s, influenced the study and teaching of environmental toxicology at the Bangkok-based Chulabhorn Research Institute, or CRI, which became a partner of the Geneva- based WHO in 2005. 

*Toxicology Research* 

Company documents show Walk formed a working relationship in the 1990s with Mathuros Ruchirawat, the institutes vice president for research, the study said. Walk was offered a teaching position on a postgraduate course about inhalation toxicology in November 1994, and invited to help develop the curriculum for a United Nations-funded toxicology training program in 1996. 

The active and ongoing involvement of industry consultants in curriculum development and the training of future researchers and regulators is particularly disturbing and, in our view, wholly inappropriate, MacKenzie and colleagues wrote. 

Mathuros knew of Walks association with Philip Morris, though other CRI scientists probably didnt, the study said, citing a 1993 fax from Walk to the companys lawyers. Mathuros had no immediate comment on the studys findings, she said by e- mail when contacted by Bloomberg News.

As the paper indicates representatives of Philip Morris disclosed their association with our company to the CRI and that these associations were known amongst the management of the CRI, Sepic, the spokeswoman for Philip Morris International, said by e-mail. 

Altria Group Inc. spun off Philip Morris International in March, and Walk now works for Altrias Philip Morris USA unit. Greg Mathe, a spokesman for Altria, had no immediate comment on the study when contacted by Bloomberg News.

bloomberg.com

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## Up2U

There is anti-smoking legislation in Thailand, also in China. Enforcement is the pronlem - and the tobacco companies need to disrupt oversight of enforcement.

In Vietnam there appears to be no serious legislation - although in our office smoking is discouraged, one or two senior Viets still puff away without criticism. And restaurants all seem to allow smoking. Our commercial director will not travel outside VN, firstly because of airline restrictions, secondly the laws of wherever the meeting is to be held. You can hear him jawking his way down the corridor ten times a day. Fortunately I'll be moving on to another project soon.

Yes, I'm anti-smoking. But in my working life I've had to share a small office with two guys who each smoked eighty a day - my father smoked at meal-time - in the military I was in a barracks where everyone else smoked - it's time the pendulum swung!

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## Mid

*Tobacco giant 'evaded B68bn import tax'* 
3/09/2009

The Office of the Attorney-General will decide on Oct 2 whether to charge the local arm of US tobacco giant Philip Morris over claims it evaded billions of baht in import taxes on its cigarettes.

 The Department of Special Investigation yesterday gave the OAG the results of its investigation into allegations Philip Morris (Thailand) United Co Ltd under-reported the value of its tobacco imports and underpaid import taxes between 2003 and 2007.

 The DSI has also sought arrest warrants for four foreigners who are among 14 people sought for questioning. 

 They are Paul Richard Dillman Jr, Ann Marie Kaczorowski, Hermann Waldermer and Matteo Lorenzo Pellegrini.

 Thawatchai Suansida, the DSI special case investigation expert who led the inquiry, said the company had evaded taxes estimated at 68 billion baht.

 Philip Morris allegedly declared a cost insurance freight (CIF) rate for L&M cigarettes imported from the Philippines of only 5.88 baht a packet. This compares with 16.81 baht a packet reported by other cigarette importers.

 The company also declared the CIF rate on Marlboro cigarettes imported from the Philippines during the same period as only 7.76 baht a packet, compared with 27.46 baht a packet reported by other importers, the DSI said.

 The DSI was also investigating an allegation that Philip Morris had falsely declared the value of its cigarettes imported from Indonesia between 2000 and 2002, resulting in a 60 billion baht loss in tax revenues to the government, Mr Thawatchai said. The second investigation would be complete soon.

 Philip Morris (Thailand) Ltd yesterday said it was confident it had declared the correct customs values.

 It had received a letter from the DSI concerning the indictment, but insisted the declared customs values were consistent with Thai law, the World Trade Organisation Valuation Agreement and valuation methodologies agreed with the Customs Department.

 "In fact, since March 2008, customs has accepted our declared customs values, having thoroughly reviewed the relevant documentation over a period of almost two years," it said. 

"The DSI's allegations concerning our declared customs values are no different than those first reported in the press in 2006 and we believe they have no merit."

bangkokpost.com

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## Butterfly

looks like customs is losing business, and looking for more revenues

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## Thetyim

> Philip Morris allegedly declared a cost insurance freight (CIF) rate for L&M cigarettes imported from the Philippines of only 5.88 baht a packet.


If 5.88 is what they paid for them, then that is the correct cost.

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## DaffyDuck

"With a little tea money, these nasty allegations will go away, na...?"

Sadly, Philip Morris doesn't care about a protracted legal battle, and it would appear that Thai customs is about to lose this one.

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## Dancing Priest

Hope Thai Customs win this battle. 

Lesser of two evils given the nature of the US tobacco industry.

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## Mid

_Public prosecutors Friday decided to drop a tax avoidance charge against 14 executives of Philip Morris (Thailand).

_snip_

The opposition plans to censure the government for having allegedly interfered in the case to help the cigarette firm._

Public prosecutors decide to drop charge against Philips Morris

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## StrontiumDog

*Bangkok Post : Cigarette tax claim is 'hot air'
*
*Cigarette tax claim is 'hot air'*

*PM denies meddling in Philip Morris imports* 
Published:  7/03/2011 at 12:00 AMNewspaper section: News
_The Democrat Party has dismissed as baseless  opposition party  allegations that the prime minister interfered with the  justice system  and allowed Philip Morris (Thailand) to get away with  false reporting  of cigarette imports.

 It is among a long list of allegations the Puea Thai Party is  expected  to file against the government in the censure debate later this  month.

_(lots more at the link)

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## BobR

> Hope Thai Customs win this battle. 
> 
> Lesser of two evils given the nature of the US tobacco industry.


Sadly they did not.  The US Governments main purpose is to help corporate scum like Phillip Morris and their relationship with the Thai Government has become too close and cozy.

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## StrontiumDog

*Bangkok Post : DSI unveils letters to back tobacco stand
*
*DSI unveils letters to back tobacco stand*

*Philip Morris cleared in tax investigation* 
Published: 10/03/2011 at 12:00 AMNewspaper section: News
_Letters from the Excise Department and the  Customs Department  persuaded the prosecution not to indict Philip Morris  (Thailand) for  false reporting of cigarette import prices, said a  source at the  Department of Special Investigation.

 The two documents were unveiled yesterday after the DSI 's   recommendation to indict the company for false reporting was rejected by   the Office of Attorney-General on Jan 13._ _

 The opposition Puea Thai Party believes Prime Minister Abhisit   Vejjajiva may have been behind the AOG's decision, as he is concerned   about Thailand's trade relations. They say his "interference" was   improper._ _

 The source cited two letters in 2009 sent to the DSI._ _

 The DSI asked the two departments to check whether Philip Morris   intended to report false prices of two imported cigarette brands to   avoid paying high customs taxes._ _

 In a letter dated Aug 28, 2009, the Excise Department cited an   inspection carried out by the Customs Department which found no   irregularities in the price reporting after it examined the Cost,   Insurance, Freight (CIF) of the products._ _

 The Excise Department later asked the Customs Department to  re-examine  whether the prices of cigarette lots had been falsely  lowered._ _

 In its letter dated Oct 8, 2009, the Customs Department said it   double-checked the price reports filed by Philip Morris and found the   company had done nothing wrong.

_*(A lot more at the link, long report)*

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## Mid

*Govt to set minimum prices for cigarettes*
March 15, 2011                 

*Finance Ministry will require minimum retail prices  for cigarettes to prevent foreign producers dumping in the market and to  safeguard people's health, said Finance Minister Korn Chatikavanij.*

 He said yesterday that he was not worried about the noconfidence debate in Parliament. The Pheu Thai Party's  charge that the government had helped tobacco giant Philip Morris evade  tax could be answered easily. The Customs Department reported no unpaid  taxes by the company. Meanwhile a dispute over import prices of  cigarettes between the department and the company is pending in the  World Trade Organisation, he said. 

Korn also said he approved the  Excise Department's change in the tax calculation on cigarettes from  factory prices to retail prices, which would lead to more revenue for  the government. 

"We will base the new tax calculation on retail  prices and take into account health concerns, and we will also require  minimum prices for each cigarette to prevent dumping by manufacturers,"  Korn said. 

The law change is expected to be forwarded to the Cabinet soon, he said. 

nationmultimedia.com

See Also :

https://teakdoor.com/business-finance...cigarette.html (Manila seeks WTO probe of Thai cigarette import rules)

https://teakdoor.com/business-finance...bn-import.html

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## Mid

Research Article        

*A Good Personal Scientific Relationship: Philip Morris Scientists and the Chulabhorn Research Institute, Bangkok*
Ross MacKenzie1, Jeff Collin2*

            Jeff Collin and Ross MacKenzie analyze tobacco industry  documents and find that Philip Morris consultants were able to gain  access to a Thai research institute that is a WHO Collaborating Centre.

*1*  School of Public Health, University of Sydney, Sydney, New South Wales, Australia, *

2*  Centre for International Public Health Policy, University of Edinburgh, Edinburgh, Scotland

*Background*

 This  paper examines the efforts of consultants affiliated with Philip Morris  (PM), the world's leading transnational tobacco corporation, to  influence scientific research and training in Thailand via the  Chulabhorn Research Institute (CRI). A leading Southeast Asian institute  for environmental health science, the CRI is headed by Professor Dr.  Her Royal Highness Princess Chulabhorn, the daughter of the King of  Thailand, and it has assumed international significance via its  designation as a World Health Organization (WHO) Collaborating Centre in  December 2005.

*Methods and Findings*

 This  paper analyses previously confidential tobacco industry documents that  were made publicly available following litigation in the United States.  PM documents reveal that ostensibly independent overseas scientists, now  identified as industry consultants, were able to gain access to the  Thai scientific community. Most significantly, PM scientist Roger Walk  has established close connections with the CRI. Documents indicate that  Walk was able to use such links to influence the study and teaching of  environmental toxicology in the institute and to develop relations with  key officials and local scientists so as to advance the interests of PM  within Thailand and across Asia. While sensitivities surrounding royal  patronage of the CRI make public criticism extremely difficult,  indications of ongoing involvement by tobacco industry consultants  suggest the need for detailed scrutiny of such relationships.

*Conclusions*

 The  establishment of close links with the CRI advances industry strategies  to influence scientific research and debate around tobacco and health,  particularly regarding secondhand smoke, to link with academic  institutions, and to build relationships with national elites. Such  strategies assume particular significance in the national and regional  contexts presented here amid the globalisation of the tobacco pandemic.  From an international perspective, particular concern is raised by the  CRI's recently awarded status as a WHO Collaborating Centre. Since the  network of WHO Collaborating Centres rests on the principle of using  national institutions for international purposes, the documents  presented below suggest that more rigorous safeguards are required to  ensure that such use advances public health goals rather than the  objectives of transnational corporations.

*Citation:* MacKenzie  R, Collin J (2008) A Good Personal Scientific Relationship: Philip  Morris Scientists and the Chulabhorn Research Institute, Bangkok. PLoS  Med 5(12):           e238.             doi:10.1371/journal.pmed.0050238

*Academic Editor:* Stanton Glantz, University of California San Francisco, United States of America

*Received:* February 26, 2008; *Accepted:* October 27, 2008; *Published:* December 23, 2008

Full Paper at the Link : PLoS Medicine:

plosmedicine.org

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## teddy

> British American Tobacco welcomes sensible regulation and we always seek, wherever possible, to engage with regulators to work towards balanced legal frameworks, Catherine Armstrong, a London-based BAT spokeswoman, said in an e-mail. Far from undermining laws, we believe our input can mean the laws are workable and realistic and can be implemented effectively.


Sounds like Michael Corleone has rehired Tom Hagen

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## StrontiumDog

*Bangkok Post : DSI targets tobacco giant in tax evasion row
*
*DSI targets tobacco giant in tax evasion row*
Published: 18/08/2011 at 12:00 AMNewspaper section: News

 The Department of Special Investigation has  decided to file charges against US tobacco firm Philip Morris Thailand  for allegedly under-declaring the value of its products to evade taxes.

 The DSI's move contradicts a decision by public prosecutors, who  decided in January to drop charges against the firm, 13 other companies  and Philip Morris Thailand executive Charonchai Salyapong.

 DSI chief Tharit Pengdit yesterday said the agency would refer its decision to the attorney-general as required by law.

 If the DSI and the public prosecutors have differing opinions, the  attorney-general will have the final say on whether to try the case. If  the attorney-general disagrees with the DSI, the case will be dropped.

 
_Tharit: No appeasement_

 The DSI probe was launched when the Excise Department filed a  complaint against Philip Morris Thailand accusing the firm of  under-declaring the value of Marlboro and L&M cigarettes imported  into Thailand, resulting in a tax loss of nearly 69 billion baht.

 Mr Tharit said yesterday the evidence was strong enough to charge the  tobacco company with falsely stating the value of its imports,  resulting in financial damage to Thailand.

 He noted the value of imports declared by the tobacco company has not  changed since 2003 despite foreign exchange rate volatility and rising  costs.

 He insisted the DSI had not decided to pursue the case to appease the  Pheu Thai Party which grilled the Democrats about the matter during an  earlier censure debate.

 Then the opposition in the House of Representatives, Pheu Thai MPs  accused former prime minister Abhisit Vejjajiva of interfering in the  justice system and allowing Philip Morris (Thailand) to falsely report  the value of its cigarette imports.

 "The DSI's stance has nothing to do with the change in the  government," said Mr Tharit. "If the DSI just wanted to appease those in  power, it could simply have agreed with the prosecution months ago.  We're doing our job."

 Philip Morris Thailand said yesterday it was disappointed with the DSI's decision.

 The company said its practices had been confirmed by a World Trade  Organization panel which ruled that the declared customs values were  consistent with Thai law.

 "Based on the public prosecutor's opinion and the decision of a World  Trade Organization panel, we believe that the attorney-general will be  able to approve the public prosecutor's non-prosecution order," it said.

 It also said that the dispute called for a "broader reform" of the  cigarette taxation system from the current regime which uses import  values to determine taxes to one that uses the retail prices as the  basis for excise tax calculations.

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## Mid

*Philip Morris fights tax evasion*
3 Oct 2013

Philip Morris vowed on Thursday to "vigorously  defend itself" against Thai tax evasion charges - the latest dispute  between the Kingdom and the tobacco giant, which recently clashed over  warnings on packets.

Newly appointed Attorney General Athapol Yaisawang said the  indictment had been launched against the maker of Marlboro cigarettes by  his predecessor, Chulasingh Vasantasingh, before his recent retirement.

Although the details of the allegations were unclear, Philip Morris  said in a statement any prosecution would violate Thailand's obligations  under a World Trade Organisation customs agreement.

"Philip Morris Thailand Limited (PMTL) intends to vigorously defend itself against these meritless charges," it said.

The company said it had not been formally notified by the Thai  authorities of a prosecution order, and expressed hope that the new  attorney general would review the case.

The row follows the Administrative Court's decision in August to  suspend government plans that would have forced cigarette companies to  slap bigger graphic warnings on packets.

The Public Health Ministry in April decided to enlarge health  warnings - which feature gruesome photographs of smoking-related  ailments - from 55 to 85% of the surface of both sides of every  cigarette packet.

The rules had been due to come into force on Oct 2.

In a statement released on Monday, the World Health Organisation  voiced regret that the tobacco industry was "trying to undermine the  work of health authorities to protect people from the devastating health  effects of smoking".

Japan Tobacco, one of the world's biggest cigarette companies with  brands including Winston and Benson & Hedges, said in June it was  suing the Thai government over the plans.

The tobacco lobby has systematically tried to block laws curbing  advertising or raising taxes on cigarettes. But more and more countries  are adopting the approach.

European Union member states in June agreed to cover 65% of packaging with health warnings.

WHO director-general Margaret Chan said last month that a "massive army" of lobbyists had been deployed to block the bill.

bangkokpost.com

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