SAFEGUARD MEASURE Flashcards
WTO permits Member Countries to provide affected domestic industries relief against imports under circumstances specified in the General Agreement on Tariffs and Trade 1994 (GATT 1994).
safeguard measures
The importing government may take temporary(general)safeguard measures (higher tariffs, tariff quotas, or quantitative restrictions) against imports if the products at issue are being imported:
increased quantities
either absolute or relative to domestic production
under such conditions as to cause or threaten to causeseriousinjury to the domestic industry.
it allows for the application of special transitional safeguards.
the WTO Agreement on Agriculture
Against importations of agricultural products whose quantitative import restrictions (QR’s) were converted (“___________”) into ordinary customs duties.
tariffied
And for agricultural products designated with the symbol ________________in the GATT Schedule of Concessions.
“SSG” (Special Safeguard Measures)
Special safeguard measures may be invoked, if:
the volume of imports exceeds a trigger level; or (but not concurrently)
the price of imports falls below a trigger price.
PURPOSE OF SAFEGUARD MEASURE
is to give the affected domestic industry time to prepare itself for and adjust to “increased import competition” resulting from the reduction of tariffs or the lifting of quantitative restrictions agreed upon in multilateral trade negotiations.
LEGISLATION
Republic Act No. 8800, otherwise known as the
“Safeguard Measures Act”
_____________, otherwise known as the “Safeguard Measures Act”
Republic Act No. 8800
Former President Estrada signed the law on
July 19, 2000.
On July 19, 2000, who signed the legislation?
Former President Estrada
R.A. 8800 was published on
July 24, 2000 and took effect on August 9, 2000, i.e., fifteen (15) days following its complete publication.
it was was published on July 24, 2000 and took effect on August 9, 2000, i.e., fifteen (15) days following its complete publication.
R.A. 8800
Conducts preliminary investigation to determine whether or not provisional measure may be imposed.
Monitors the domestic industry’s progress and its efforts to make a positive adjustment to import competition.
Decides on the form of definitive safeguard measure to impose and issues a Department Order for implementation by concerned agencies.
Department of Trade and Industry – Bureau of Import Services (DTI-BIS) or Department of Agriculture (DA)
Conducts investigation on any legitimate request for the extension and re-application of safeguard measures; the reduction, modification and/or termination of safeguard action.
After the termination of safeguard measure, evaluates the effectiveness of the actions taken by the domestic industry to facilitate its positive adjustment to import competition.
Tariff Commission
In the case of sensitive, tariffied agricultural products (marked “SSG” in Schedule LXXV-Philippines), conducts verification whether:
volume of imports exceeds a base trigger level, or
c.i.f. import price falls below a trigger price level.
Department of Agriculture (DA)
Who may file a petition for safeguard measures?
“General safeguard measures”
Domestic producers as a whole
The” President”, or the” House or Senate Committee on Agriculture”, or the “House or Senate Committee on Trade and Commerce”; and
The “DTI or DA Secretary”, motu proprio, if there is evidence of increased imports of the product under consideration.
Who may file a petition for safeguard measures?
“Special safeguard measures”
“Any person”, whether natural or juridical may request a verification if a particular agricultural product can be imposed a special safeguard duty.
The “DA Secretary” may, motu proprio, initiate the imposition of a special safeguard measure following the satisfaction of the conditions for imposing the measure.
Where to file?
“General safeguard measures”
Petitions for safeguard action shall be filed with:
the “DTI Secretary” in the case of non-agricultural products, or
the “DA Secretary” in the case of agricultural products,
who shall determine whether or not the petition is proper in form and substance and whether or not the documentary requirements are complied with.
Where to file?
“Special safeguard measures”
The request shall be filed with the “Secretary of the Department of Agriculture”
Stages in a safeguard investigation
“General safeguard measure”
Prima Facie Determination
Preliminary Determination
Formal Investigation
Decision
Stages in a safeguard investigation
“Special safeguard measure”
Verification
Findings
Imposition of special safeguard measure
Stages in a safeguard investigation (GENERAL SAFEGUARD)
The DTI-BIS or DA, upon acceptance of the properly documented petition, has five (5) calendar days to decide whether a ______________ exists to merit the initiation of a preliminary investigation. In its determination, the BIS or DA undertakes an in-depth evaluation of the data submitted or provided, together with the information obtained independently.
If no ___________________, the application is denied.
PRIMA FACIE DETERMINATION
Stages in a safeguard investigation (GENERAL SAFEGUARD)
Within two (2) calendar days after the decision to initiate the preliminary investigation is made, DTI-BIS or DA notifies all known interested parties and the government of the exporting country about the initiation of the investigation and sends a proforma respondent’s questionnaire to all the interested parties (importers, domestic manufacturers, exporters, etc.).
PRELIMINARY DETERMINATION
Stages in a safeguard investigation (GENERAL SAFEGUARD)
The Commission shall conduct the formal investigation to determine:
if the domestic product is a like product or a product directly competitive to the imported product under consideration;
if the product is being imported into the Philippines in increased quantities (absolute or relative to domestic production);
FORMAL INVESTIGATION
Stages in a safeguard investigation (GENERAL SAFEGUARD)
Within fifteen (15) calendar days from receipt of the Report of the Commission, the Secretary shall make a decision, taking into consideration the measures recommended by the Commission.
If the determination is affirmative, the Secretary shall issue, within two (2) calendar days after making his decision, a written instruction to the heads of the concerned government agencies to implement the appropriate general safeguard measure as determined by him.
DECISION
Stages in a safeguard investigation -(SPECIAL SAFEGUARD)
The DA Secretary shall verify if the cumulative import volume of an “SSG”-denominated agricultural product in a given year has exceeded its trigger volume or, but not concurrently, its actual c.i.f. import price is less than its trigger price.
VERIFICATION
Stages in a safeguard investigation (SPECIAL SAFEGUARD)
The Secretary shall come up with a finding within five (5) working days from the receipt of a request.
FINDINGS
Stages in a safeguard investigation (SPECIAL SAFEGUARD)
The Secretary shall issue a Department Order requesting the Commissioner of Customs through the Secretary of Finance to impose an additional special safeguard duty.
IMPOSITION OF SPECIAL SAFEGUARD MEASURE
What are the remedies/measures imposed against the injurious import surge? (GENERAL SAFEGUARD)
Applied only after a preliminary affirmative determination by BIS or DA
Take the form of a tariff increase either ad valorem or specific, or both
To be paid through a cash bond set at a level sufficient to redress or prevent serious injury to the domestic industry.
PROVISIONAL MEASURE
What are the remedies/measures imposed against the injurious import surge? (GENERAL SAFEGUARD)
PROVISIONAL MEASURE
In the case of “_____________”, the Secretary shall first establish that the imposition of the provisional safeguard measure would be in the public interest.
non-agricultural products
What are the remedies/measures imposed against the injurious import surge? (GENERAL SAFEGUARD)
PROVISIONAL MEASURE
In the case of “____________”, where the tariff increase may not be sufficient to redress or to prevent serious injury to the domestic producer or producers, a quantitative restriction may be applied.
agricultural products
What are the remedies/measures imposed against the injurious import surge? (GENERAL SAFEGUARD)
PROVISIONAL MEASURE
In the case of non-agricultural products, the Secretary shall first establish that the imposition of the provisional safeguard measure would be in the public interest.
In the case of agricultural products, where the tariff increase may not be sufficient to redress or to prevent serious injury to the domestic producer or producers, a quantitative restriction may be applied.
The duration of the provisional measure shall not exceed two hundred (200) calendar days from the date of imposition.
PROVISIONAL MEASURE
What are the remedies/measures imposed against the injurious import surge?
(GENERAL SAFEGUARD)
The Commission may also recommend other actions, including the initiation of international negotiations, to address the underlying cause of the increase in imports of the product to alleviate the injury or threat thereof to the domestic industry and to facilitate positive adjustment to import competition.
DEFINITIVE SAFEGUARD MEASURE
What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?
(SPECIAL SAFEGUARD)
Under the volume test:
the special safeguard duty shall be set to a level not exceeding one-third (1/3) of the applicable out-quota customs duty on the agricultural product under consideration.
What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?
(SPECIAL SAFEGUARD)
On the basis of the price test, the additional duty shall be computed as follows:
i Zero
ii Thirty percent (30%) of the amount
iii Fifty percent (50%) of the amount
iv Seventy percent (70%) of the amount
What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?
(SPECIAL SAFEGUARD)
ii ______________by which the price difference exceeds ten percent (10%) of the trigger price, if the said difference exceeds ten percent (10%) but is at most forty percent (40%) of the trigger price; or
Thirty percent (30%) of the amount
What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?
(SPECIAL SAFEGUARD)
i __________, if the price difference is, at most, ten percent (10%) of the trigger price; or
Zero
What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?
(SPECIAL SAFEGUARD)
iii ___________ by which the price difference exceeds forty percent (40%) of the trigger price, plus the additional duty imposed under paragraph ii, if the said difference exceeds forty percent (40%) but is, at most, sixty percent (60%) of the trigger price; or
Fifty percent (50%) of the amount
What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?
(SPECIAL SAFEGUARD)
iv _______________ by which the price difference exceeds sixty percent (60%) of the trigger price, plus the additional duties imposed under paragraphs ii and iii, if the said difference exceeds sixty percent (60%) and is, at most, seventy-five (75%) of the trigger price; or
Seventy percent (70%) of the amount
Duration of the safeguard measures
Definitive general safeguard measures
General rule:
The maximum initial period for the application of the safeguard measure is four (4) years.
Duration of the safeguard measures
Definitive general safeguard measures
Exception to the general rule:
The initial period may be extended up to a maximum of eight (8) years (10 years for developing countries).
Duration of the safeguard measures
Special safeguard measures
The additional special safeguard duty shall be maintained only until the end of the year in which it is imposed.
