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SD & TR > SAFEGUARD MEASURE > Flashcards

SAFEGUARD MEASURE Flashcards

1
Q

trade remedy measures adopted by the government to provide affected domestic industries relief against imports

A

safeguard measure

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2
Q

The purpose for the application of safeguard measures 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

true or false

A

true

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3
Q

2 types of safeguard measure

A

general safeguard measure
special safeguard measure

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4
Q

imposed against imports if the products at issue are being imported in such increased quantities, either absolute or relative to domestic production, and under such conditions as to cause or threaten to cause
serious injury to the domestic industry

A

general safeguard measure

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5
Q

imposed against importations of agricultural
products whose quantitative import restrictions were converted (tariffied) into
ordinary customs duties and agricultural products designated with the symbol “SSG” in the GATT Schedule of Concessions. It may be invoked if (i) the volume of imports exceeds a trigger level; or, but not concurrently, (ii) the price of imports falls below a trigger price. In either case, injury to the domestic industry need not be established.

A

special safeguard measure

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6
Q

otherwise known as the “Safeguard Measures Act” was signed on July 19, 2000 and took effect on August 9, 2000.

A

Republic Act (RA) No. 8800

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7
Q

General safeguard measures to relieve domestic industries suffering from serious injury as a result of increased imports;

true or false

A

true

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8
Q

Special safeguard measures on agricultural products marked “SSG’ in Schedule LXXV-Philippines when the import volume exceeds its trigger level or when the import price falls below a trigger price level

true or false

A

true

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9
Q

The provisions of RA 8800 were adopted in Section ____________ of the Customs Modernization and Tariff Act (CMTA).

A

712

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10
Q

What other issuances were promulgated to implement RA 8800?

A

Joint Administrative Order No. 03, s. 2000 - Implementing Rules and Regulations
of RA 8800 which took effect on October 11, 2000.

Tariff Commission (TC) Order No. 00-02 - prescribes the internal rules and
regulations governing the conduct of formal investigation by the Tariff
Commission pursuant to RA 8800.

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11
Q

Which government agencies administer the Safeguard Measures Act in General Safeguard Measure?

A

Department of Trade and Industry-Bureau of Import Services (DTI-BIS) or
Department of Agriculture (DA)

Tariff Commission

Bureau of Customs

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12
Q

Which government agencies administer the Safeguard Measures Act in Special safeguard measure?

A

Department of Agriculture

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13
Q

receives the application/petition (DTI for
industrial goods and DA for agricultural products) and conducts preliminary
investigation to ascertain whether or not to impose provisional measure.

A

Department of Trade and Industry-Bureau of Import Services (DTI-BIS) or
Department of Agriculture (DA)

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14
Q

conducts formal investigation and submits
recommendation to DTI or DA Secretary on the form of definitive safeguard measure to be imposed; monitors the domestic industry’s progress and its efforts to make a positive adjustment to import competition; conducts
investigation on any legitimate request for the extension and re-application of safeguard measures; the reduction, modification and/or termination of safeguard action; and evaluates the effectiveness of the safeguard actions
taken by the domestic industry to facilitate its positive adjustment to import competition after the termination of safeguard measure

A

Tariff Commission

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15
Q

implements the imposition of the safeguard measures

A

Bureau of Customs

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16
Q

receives the application/petition for safeguard
measure on sensitive tariffied agricultural products (marked “SSG” in Schedule LXXV-Philippines); conducts verification whether (i) volume of imports exceeds a base trigger level, or (ii) c.i.f. import price falls below a trigger price level and makes its finding within 5 working days from receipt of the petition; and issues a Department Order for the imposition a special safeguard duty on subject product.

A

Department of Agriculture

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17
Q

Who may file a petition for safeguard measures for General safeguard measure?

A

Domestic producers

The President, or the House or Senate Committee on Agriculture, or the
House or Senate Committee on Trade and Commerce;

DTI or DA Secretary

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18
Q

Who may file a petition for safeguard measures for Special safeguard measure?

A

any person
DA Secretary

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19
Q

What are the stages of investigation for the imposition of a general safeguard measure?

A

Prima Facie Determination
Preliminary Determination
Final Determination
Decision

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20
Q

In Prima Facie Determination, the DTI-BIS or DA, upon acceptance of a properly documented petition from a domestic industry, has _________________to decide whether a prima facie case exists to merit the initiation of a preliminary investigation. If no prima facie case exists, the application is rejected.

A

five (5) calendar days

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21
Q

in Preliminary Determination, once a prima facie case has been established, DTI or DA initiates the preliminary investigation to include notification to all known interested parties and the government of the exporting country, and
distribution of questionnaire to all concerned parties. DTI or DA has ___________ from receipt of the response to questionnaire to make its preliminary determination whether or not to impose a provisional safeguard measure. If affirmative finding, the Secretary of either DTI or DA issues a Department Order (DO) for the imposition of the provisional safeguard measure. In case of a negative finding, the DTI or DA Secretary terminates the investigation.

A

30 calendar days

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22
Q

In Final Determination, the Commission has _______________ (or 60 days if the Secretary certifies the case as urgent) from receipt of the endorsement from the Secretary to conclude its formal investigation and submit its report of findings and recommendations to the Secretary on whether or not to impose a definitive safeguard measure

A

120 calendar days

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23
Q

Decision. The Secretary has _________________ from receipt of the Commission’s report to make a decision. If the determination is affirmative, a Department Order is issued to implement the imposition of the general safeguard measure. In case of a negative determination, the Secretary issues a DO for the termination of the case as well as a written instruction to the Commissioner of Customs, through the Secretary of Finance, authorizing BOC the return of the cash bond previously
collected.

A

15 calendar days

24
Q

elements for the imposition of safeguard measure in general safeguard measure.

A

like product
increase imports
injury or threat thereof
causality

25
Q

elements for the imposition of safeguard measure in Special safeguard measure.

A

Volume of imports exceed a base trigger level; or
Price of imports fall below a trigger price level.

26
Q

Injury to the domestic industry is not element in the imposition of a special safeguard measure.

true or false

A

true

27
Q

If no prima facie case exists, the application is rejected.

true or false

A

true

28
Q

 Rate and amount of the increase in imports of the product under consideration in absolute or relative terms;
 Share of the domestic market taken by the increased imports;
 Changes in the level of sales, prices, production, productivity, capacity utilization,
inventories, profits and losses, wages and employment of the domestic industry;
 Significant idling of productive facilities in the domestic industry including the closure of plants or underutilization of production capacity;
 Inability of a significant number of firms to carry out domestic production at a profit; and
 Significant unemployment or underemployment within the domestic industry

A

factors in determining serious injury

29
Q

Significant rate of increase in imports into the Philippines indicating the likelihood of substantially increased importation, evidenced inter alia by the existence of letters of credit, supply or sales contract, the award of a tender, an irrevocable offer or other similar contracts

identify if it is a factor considered in determining the existence of a threat of serious injury or a it is a factor in determining serious injury

A

factor considered in determining the existence of a threat of serious injury

30
Q

Sufficient freely disposable, or an imminent, substantial increase in, production capacity of the foreign exporters including access conditions they face in third country markets, indicating the likelihood of substantially increased exports to the Philippines

identify if it is a factor considered in determining the existence of a threat of serious injury or a it is a factor in determining serious injury

A

factor considered in determining the existence of a threat of serious injury

31
Q

Decline in sales or market share, and a downward trend in production, profits,
wages, productivity or employment (or increasing underemployment) in the
domestic industry and its inability to generate capital for modernization or to
maintain existing levels of expenditures for research and development;

identify if it is a factor considered in determining the existence of a threat of serious injury or a it is a factor in determining serious injury

A

factor considered in determining the existence of a threat of serious injury

32
Q

Growing inventories of the product being investigated whether maintained by
Philippine producers, importers, wholesalers or retailer

identify if it is a factor considered in determining the existence of a threat of serious injury or a it is a factor in determining serious injury

A

factor considered in determining the existence of a threat of serious injury

33
Q

What general safeguard measures can be imposed against injurious import surges?

A

Provisional measure - cash bond
Definitive safeguard measure
a. Increase in, or imposition of, any duty on the imported product;
b. Decrease in or the imposition of a tariff-rate quota (Minimum Access Volume)
on the product;
c. Modification or imposition of any quantitative restriction on the importation of
the product into the Philippines;
d. One or more appropriate adjustment measures, including the provision of
trade adjustment assistance; or
e. Any combination of actions described in subparagraphs (i) to (iv).

34
Q

Provisional measure - takes 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. 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.

true or false

A

true

35
Q

in imposing provisional measure 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.

true or false

A

true

36
Q

In imposing safeguard measure, 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.

true or false

A

true

37
Q

What special safeguard measures are imposed on SSG-denominated agricultural products?

A

a. Provisional measure – not applied
b. Definitive safeguard measure:
*volume test- additional duty should not exceed one-third (1/3) of the applicable out-quota customs duty on the agricultural product under consideration.
*price test, the additional duty is computed as follows:
i. 0 (zero) if price difference is, at most, 10% of the trigger price;
ii. 30% of the amount if price difference exceeds ten percent (10%) but not more than 40% of the trigger price
iii. 50% of the amount if price difference exceeds 40% but not more than 60% of the price trigger.
iv. 70% of the amount if price difference is 60% but not more than 75% of the trigger price.
v. 90% of the amount if price difference exceeds 75%

38
Q

What is the duration for the imposition of General Safeguard Measure?

A

Provisional measure - not exceed 200 calendar days from the date of
imposition.

Definitive safeguard measure - maximum initial of four (4) years, including the period in which
provisional measure is impose. The initial period may be extended up to a
maximum of eight (8) years, or ten (10) years for developing countries.

39
Q

What is the duration for the imposition of Special Safeguard Measure?

A

Definitive safeguard duty – effective only until the end of the year in which the
measure is imposed

40
Q

The general safeguard measures should be limited to: i) extent of redressing or preventing serious injury to the domestic industry; and ii) to facilitate the domestic industry’s adjustments from the adverse effects directly attributed to the increased imports.

true or false

A

true

41
Q

When quantitative import restrictions are used, such measures shall not reduce the quantity of imports below the average imports for the three (3) preceding representative years, unless clear justification is given that a different level is necessary to prevent or remedy a serious injury

true or false

A

true

42
Q

General safeguard measure shall not be applied to a product originating from a
developing country, if that country’s share of total imports of the product is less than 3%,
provided that the developing countries with less than 3% share collectively account for not
more than 9% of the total imports.

true or false

A

true

43
Q

What products will not be affected by the provisions of the special safeguard measures prescribed under RA 8800.

A

RA 8435, otherwise known as the Agriculture and Fisheries Modernization Act,

44
Q

The special safeguard provisions of RA 8800 shall lapse with the duration of the reform process in agriculture as determined in the World Trade Organization (WTO). Thereafter, recourse to safeguard measures shall be subject to the provisions on general safeguard measures as provided in RA 8800

true or false

A

true

45
Q

Can the Commission recommend the application of general safeguards on a
bilateral or selective basis?

A

No. One of the major guiding principles of the WTO Agreement on Safeguards is that such measures be applied on a non-selective or Most-Favoured-Nation (MFN) basis. Safeguard measures shall be applied to a product being imported irrespective of its source. Thus, a WTO Member may not choose specific countries against whose exports it applies
the measures

46
Q

when applying safeguard measures, it is a must to generally pay for the importing country through compensation which is substantially the equivalent level of concessions and other obligations with respect to affected exporting WTO members.

true or false

A

true

47
Q

Any adequate means of trade compensation may be agreed upon by the affected Members through consultation. In the absence of such agreement on compensation within 30 days, the affected exporting Members may individually suspend substantially equivalent concessions and other obligations (i.e., retaliate) unless the Council for Trade in Goods disapproves

true or false

A

true

48
Q

action plan indicating a set of quantified goals, specific programs, and timetables that a concerned industry commits to undertake in order to facilitate the industry’s positive adjustment to import competition (e.g., adoption of improve technology, rationalization of production structures).

A

adjustment plan

49
Q

To whom and when does a domestic industry submit its adjustment plan

A

domestic industry submits its adjustment plan to the Commission within 45 calendar days (or 30 calendar days if the investigation is certified as urgent) upon receipt of the notice of submission.

50
Q

Dumping and countervailing duties seek
to level the playing field by providing remedies and protecting domestic industries against the unfair trade practices of dumping and/or subsidization

true or false

A

true

51
Q

General safeguards will remove
injury and facilitate structural adjustments that will enable an industry to gain competitiveness.

true or false

A

true

52
Q

Special safeguards will not assist
farmers whose products were
previously protected by quantitative
restrictions that have been tariffied

true or false

A

false.
special safeguards WILL ASSIST FARMERS

53
Q

General safeguards apply to
industrial goods only

true or false

A

false
General safeguards apply to
industrial and non-tariffied goods

54
Q

Special safeguards apply to tariffied agricultural products denominated with the acronym “SSG” in the GATT Schedule of Concessions

true or false

A

true

55
Q

A domestic Industry which is supported by domestic producers whose collective output constitutes more than 50% of the total production of the like product produced by other domestic producers that are expressing either support for or opposition to the application. However, no investigation shall be initiated when domestic producers expressly
supporting the application account for less than 25% of the production of the like product produced by the domestic industry.

true or false

A

true

56
Q

Industry filing the case should be a producer of the like or directly competitive product whose collective output constitutes a major proportion of the total domestic production –
general safeguards

true or false

A

true

57
Q

In critical circumstances where delay may cause damage that is difficult to repair, safeguard measure in the form of tariff adjustment may be imposed for 120 days pursuant to a preliminary determination.

true or false

A

false
200 days

SD & TR (3 decks)

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