Decisions of the Appellate Body of the World Trade Organization Chile - Price Band System and Safeguard Measures Relating to Certain Agricultural Products 2. Facts Chile's tariff rates for certain imported agricultural goods vary because Chile employs a price band system for these goods. The price band is set once year by presidential decree and provides an upper and a lower price threshold for each product. On a weekly basis, reference prices are determined for the same products depending on prices abroad. If the reference price for a certain good is below the lower threshold of the price band, the customs authorities will add a specific duty to the standard applied duty. They will grant a rebate if the reference price is higher than the upper threshold. In case the reference price is within the price band, the standard applied duty will be charged. In some cases, the tariff rates for the goods subject to the price band system exceeded the rate of 31.5% to which Chile was bound under its WTO schedule. During the proceedings of the Panel, Chile amended the law governing the price band system to ensure that the combination of duties resulting from Chile's price band system would not exceed its bound rate.
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