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1. Introduction |
Safeguard measures are a temporary exception to the principle of free trade, which may be put into place if three is an increase in the volume of imports, which causes or threatens to cause serious injury to a domestic industry.
The measures are designed to help domestic industry cope with the unexpected increase in imports; thus, these measures have a provisional effect that affords an opportunity to the domestic industry for restructuring to cope with changes, not to prevent such changes resulting from international competition.
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2. Application for safeguard measures |
The application must provide positive evidence of:
- the absolute increase of the imported subject product, or relative to the domestic product.
- existence of serious injury or threats to cause injury to the domestic industry due to the increase of imports.
- a structural adjustment plan for the industry through which it will be able to face the international competition in the domestic market.
- the application submitted represents the domestic industry producing like products (resembling the imported goods) or products which are directly competitive to the imports.
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2.1 Source of imports |
Safeguard measures shall be applied to the product under investigation irrespective of the source thereof. Accordingly, total imports from all countries shall be examined upon the analysis of the application, taking into consideration the possibility of setting aside the small volumes of imports imported from the developing countries.
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2.2 The product |
The imported product under investigation shall be a like product or be directly competitive to that produced by the domestic industry.
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2.3 Form of measures |
Safeguard measures may be in the form of quantitative restrictions (quotas) or additional duties. These measures may only be applied to the extent necessary to prevent or remedy serious injury and to facilitate the structural adjustment of the industry.
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2.4 The period of safeguard measures application |
Safeguard measures shall be applied for the time period necessary to prevent or remedy serious injury and to facilitate the structural adjustment of the industry. In all cases, this period may not exceed a four-year term unless the investigating authority decides to extend such term. In order to extend the corresponding term, the measures must continue to be necessary to prevent or remedy serious injury. There must also be evidence that the industry is engaged in the restructuring. The industry for which the safeguard measures are applied shall submit to the investigating authority regular reports regarding the course of the structural adjustment plan.
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2.5 Provisional measures |
Provisional measures may be taken in emergencies, when the industry shows that any delay will lead to a serious injury. These measures may not be taken in the case of a threat of serious injury. The application shall include evidence that there is necessity to apply the provisional measures. The industry shall ensure that the period of enforcement of the provisional measures does not exceed 200 days, during which all stages of the investigation shall be completed. These provisional measures shall be in the form of additional tariff duties, which shall be refunded to the payers if the investigation does not prove that the increase in imports caused or threatened to cause injury to the domestic industry.
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2.6 Confidential information |
All information and letters to the department should be accompanied by a non-confidential version or a non-confidential summary. If the party submitting such information states that this information cannot be summarized, such party shall state the reasons. If the investigating authority finds that the reasons of confidentiality are not justified or a non–confidential version or summary is not provided, the application may be disregarded.
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2.7 Information |
Evidence (such as invoices and other documents) substantiating the information provided in the application shall be submitted, showing the increase of imports and the serious injury caused to the domestic industry, as well as the causal link between such injury and the increase of the imports. Details about the sales of the industry and the costs and terms of selling shall be according to the records and ledgers of the company and these shall be available to the Department to verify the information provided.
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