SAFEGUARD MEASURE

Question 1

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).

Answer 1

safeguard measures

Question 2

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:

Answer 2

increased quantities

either absolute or relative to domestic production

under such conditions as to cause or threaten to causeseriousinjury to the domestic industry.

Question 3

it allows for the application of special transitional safeguards.

Answer 3

the WTO Agreement on Agriculture

Question 4

Against importations of agricultural products whose quantitative import restrictions (QR’s) were converted (“___________”) into ordinary customs duties.

Answer 4

tariffied

Question 5

And for agricultural products designated with the symbol ________________in the GATT Schedule of Concessions.

Answer 5

“SSG” (Special Safeguard Measures)

Question 6

Special safeguard measures may be invoked, if:

Answer 6

the volume of imports exceeds a trigger level; or (but not concurrently)

the price of imports falls below a trigger price.

Question 7

PURPOSE OF SAFEGUARD MEASURE

Answer 7

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.

Question 8

LEGISLATION
Republic Act No. 8800, otherwise known as the

Answer 8

“Safeguard Measures Act”

Question 9

_____________, otherwise known as the “Safeguard Measures Act”

Answer 9

Republic Act No. 8800

Question 10

Former President Estrada signed the law on

Answer 10

July 19, 2000.

Question 11

On July 19, 2000, who signed the legislation?

Answer 11

Former President Estrada

Question 12

R.A. 8800 was published on

Answer 12

July 24, 2000 and took effect on August 9, 2000, i.e., fifteen (15) days following its complete publication.

Question 13

it was was published on July 24, 2000 and took effect on August 9, 2000, i.e., fifteen (15) days following its complete publication.

Answer 13

R.A. 8800

Question 14

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.

Answer 14

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

Question 15

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.

Answer 15

Tariff Commission

Question 16

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.

Answer 16

Department of Agriculture (DA)

Question 17

Who may file a petition for safeguard measures?
“General safeguard measures”

Answer 17

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.

Question 18

Who may file a petition for safeguard measures?
“Special safeguard measures”

Answer 18

“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.

Question 19

Where to file?
“General safeguard measures”

Answer 19

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.

Question 20

Where to file?
“Special safeguard measures”

Answer 20

The request shall be filed with the “Secretary of the Department of Agriculture”

Question 21

Stages in a safeguard investigation

“General safeguard measure”

Answer 21

Prima Facie Determination

Preliminary Determination

Formal Investigation

Decision

Question 22

Stages in a safeguard investigation

“Special safeguard measure”

Answer 22

Verification

Findings

Imposition of special safeguard measure

Question 23

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.

Answer 23

PRIMA FACIE DETERMINATION

Question 24

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.).

Answer 24

PRELIMINARY DETERMINATION

Question 25

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);

Answer 25

FORMAL INVESTIGATION

Question 26

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.

Answer 26

DECISION

Question 27

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.

Answer 27

VERIFICATION

Question 28

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.

Answer 28

FINDINGS

Question 29

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.

Answer 29

IMPOSITION OF SPECIAL SAFEGUARD MEASURE

Question 30

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.

Answer 30

PROVISIONAL MEASURE

Question 31

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.

Answer 31

non-agricultural products

Question 32

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.

Answer 32

agricultural products

Question 33

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.

Answer 33

PROVISIONAL MEASURE

Question 34

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.

Answer 34

DEFINITIVE SAFEGUARD MEASURE

Question 35

What special safeguard measures are imposed with respect to “SSG”-denominated agricultural products?

(SPECIAL SAFEGUARD)

Under the volume test:

Answer 35

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.

Question 36

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:

Answer 36

i Zero

ii Thirty percent (30%) of the amount

iii Fifty percent (50%) of the amount

iv Seventy percent (70%) of the amount

Question 37

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

Answer 37

Thirty percent (30%) of the amount

Question 38

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

Answer 38

Zero

Question 39

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

Answer 39

Fifty percent (50%) of the amount

Question 40

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

Answer 40

Seventy percent (70%) of the amount

Question 41

Duration of the safeguard measures
Definitive general safeguard measures

General rule:

Answer 41

The maximum initial period for the application of the safeguard measure is four (4) years.

Question 42

Duration of the safeguard measures
Definitive general safeguard measures

Exception to the general rule:

Answer 42

The initial period may be extended up to a maximum of eight (8) years (10 years for developing countries).

Question 43

Duration of the safeguard measures
Special safeguard measures

Answer 43

The additional special safeguard duty shall be maintained only until the end of the year in which it is imposed.