Declaration of Policy
- The State aims to promote domestic industries and producers.
- Safeguard measures are provided to protect these industries from increased imports causing or threatening serious injury.
Scope of Application
- The Act applies to all imported products regardless of their source.
Definitions
- Important terms such as "agricultural product," "domestic industry," "serious injury," "trigger price," and others are clearly defined to guide the application of the Act.
Conditions for General Safeguard Measures
- The Secretary applies a general safeguard measure following a positive determination from the Tariff Commission that increased imports substantially cause or threaten serious injury.
- For non-agricultural products, measures must align with public interest.
Initiation of General Safeguard Action
- Domestic industry representatives may file verified petitions to request investigations.
- The Secretary can initiate investigations motu proprio or upon requests from high governmental bodies.
- Legal and technical assistance shall be provided to domestic producers.
Preliminary Determination
- The Secretary has 30 days to preliminarily determine if increased imports substantially cause or threaten serious injury.
- Interested parties are notified and given time to respond.
- Positive preliminary determinations lead to formal investigations by the Commission.
Provisional Measures
- In critical circumstances, provisional measures such as cash-bond tariff increases or quantitative restrictions may be imposed to prevent irreparable damage.
- Duration is limited to 200 days and these tariffs may exceed standard maximum levels.
Formal Investigation
- The Commission holds public hearings and completes investigations within 120 days (60 if urgent).
- Interested parties may present evidence; transparency and procedural fairness are ensured.
Inspection of Evidence
- Evidence is made accessible to interested parties except confidential information, subject to conditions.
Adjustment Plan
- The domestic industry must submit plans for positive adjustment to import competition.
- Commitment submissions may come from firms, workers' unions, communities, or trade associations.
Determination of Serious Injury or Threat
- Comprehensive evaluation of import volume, market share, sales, production, profits, employment, and causality with increased imports.
- Injury caused by factors other than imports is excluded.
Adoption of Definitive Measures
- Measures include tariff increases, quantitative restrictions, adjustment assistance, and combination thereof.
- Import restrictions cannot reduce import quantities below recent averages without justification.
- Measures exclude products from developing countries with minimal import shares.
- Measures lasting more than one year require periodic review and must foster positive industry adjustment.
Report Contents by the Commission
- Investigation findings, recommendations, adjustment plans, and commitments included.
- Short and long-term effects on industries, consumers, workers, and communities are analyzed.
- Public disclosure except for confidential information.
Duration Limits on Safeguard Actions
- Measures may last up to 4 years, including provisional phases; total effective period may not exceed 10 years.
- Duties must prevent or remedy injury with appropriate specificity.
- Import quantities under restrictions must respect averages unless justified.
- Phasing down measures required for actions exceeding one year.
- Reapplication has restrictions to avoid frequent use.
Monitoring
- Ongoing monitoring of domestic industries' adjustment during measures.
- Public hearings conducted for monitoring reports with participation of interested parties.
WTO Notification
- The Secretary must notify the WTO Committee on Safeguards at various stages including initiation, provisional measures, and extensions.
Reduction, Modification, and Termination
- Conditions include lack of positive adjustment or changed economic circumstances.
- Petitions for changes must be timely and undergo investigation.
Extension and Re-application
- Extensions allowed if necessary and contingent on positive industry adjustment.
- Procedure involves reporting by the Commission and prompt decision by the Secretary.
Evaluation After Termination
- Post-measure public hearings assess the effectiveness of actions taken by the domestic industry.
Special Safeguard for Agricultural Products
- Additional duties may be imposed if import volume exceeds trigger volume or import price falls below trigger price.
- Requests may initiate verification; Secretary may act motu proprio.
Volume Test for Agricultural Products
- Trigger volume varies by market access opportunities and average imports.
- Special duty capped at one-third of out-quota customs duty and may be terminated in special cases like shortages.
- In-transit imports are exempted but counted for next year.
Price Test for Agricultural Products
- Trigger price based on historical c.i.f. prices (1986-1988) unless justified differently.
- Special duty is scaled by price difference exceeding certain thresholds.
- Safeguard measures based on price test avoided when imports decline.
Minimum Access Volume Exemption
- Duties do not apply to imports under MAV commitments but these are counted in cumulative import volume.
Special Provisions for Perishable and Seasonal Products
- Shorter time periods and different reference prices may be used.
Notification and Transparency
- Written notice to WTO Committee on Agriculture provided within ten days of implementation.
- Consultation with interested WTO members required.
Duration of Special Safeguard Measures
- Measures last as long as WTO-determined agricultural reform process; after which general safeguards apply.
Judicial Review
- Aggrieved parties can file petitions for review in the Court of Tax Appeals within 30 days.
- Filing does not suspend safeguard actions.
Penalties for Government Officials
- Gross neglect in implementing the Act results in dismissal and disqualification from public office.
Prohibition of Concurrent Safeguard Measures
- General and special safeguard measures may not be applied simultaneously to the same product.
Rulemaking and Oversight
- Departments of Agriculture and Trade and Industry to promulgate implementing rules within 60 days.
- A Congressional Oversight Committee is established for supervision.
Funding and Use of Fees
- Necessary appropriations included in the General Appropriations Act.
- Fees and duties collected split between remedies fund and competitiveness enhancement.
Protection of Farmers and Fisherfolk
- The Act does not affect provisions of the Agriculture and Fisheries Modernization Act.
Conditions for Application
- Actions must be transparent and avoid anti-competitive or monopolistic practices.
- Existing supply contracts shall not be impaired.
Separability and Repealing Clauses
- Invalid provisions do not affect remainder of the Act.
- Conflicting laws and issuances are repealed or amended.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation or Official Gazette, whichever is earlier.